EXHIBIT 4
EXECUTION COPY
MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.,
Depositor
UBS WARBURG REAL ESTATE SECURITIES INC.,
Transferor
XXXXX FARGO BANK MINNESOTA, N.A.,
Master Servicer
and
JPMORGAN CHASE BANK,
Trustee
------------------------------------------------------------
POOLING AND SERVICING AGREEMENT
Dated as of January 1, 2003
------------------------------------------------------------
MASTR ADJUSTABLE RATE MORTGAGES TRUST 2003-1
MORTGAGE PASS-THROUGH CERTIFICATES, Series 2003-1
TABLE OF CONTENTS
ARTICLE I
DEFINITIONS
Section 1.01. Definitions..................................................
Section 1.02. Certain Calculations.........................................
ARTICLE II
CONVEYANCE OF MORTGAGE LOANS; REPRESENTATIONS AND WARRANTIES
Section 2.01. Conveyance of Mortgage Loans.................................
Section 2.02. Acceptance by Trustee of the Mortgage Loans..................
Section 2.03. Remedies for Breaches of Representations and Warranties......
Section 2.04. Representations and Warranties of the Depositor as to the
Mortgage Loans..............................................
Section 2.05. [Reserved]...................................................
Section 2.06. Execution and Delivery of Certificates.......................
Section 2.07. REMIC Matters................................................
Section 2.08. Covenants of the Master Servicer.............................
Section 2.09. Representations and Warranties of the Master Servicer........
ARTICLE III
ADMINISTRATION AND MASTER SERVICING
OF MORTGAGE LOANS
Section 3.01. Master Servicing of Mortgage Loans...........................
Section 3.02. Monitoring of Servicers......................................
Section 3.03. [Reserved]...................................................
Section 3.04. Rights of the Depositor and the Trustee in Respect of the
Master Servicer.............................................
Section 3.05. Trustee to Act as Master Servicer............................
Section 3.06. Protected Accounts...........................................
Section 3.07. Collection of Mortgage Loan Payments; Collection Account;
Distribution Account; Excess Reserve Fund Account...........
Section 3.08. Collection of Taxes, Assessments and Similar Items;
Escrow Accounts.............................................
Section 3.09. Access to Certain Documentation and Information Regarding
the Mortgage Loans..........................................
Section 3.10. Permitted Withdrawals from the Collection Account and
Distribution Account........................................
Section 3.11. Maintenance of Hazard Insurance; Maintenance of Primary
Insurance Policies..........................................
Section 3.12. Presentment of Claims and Collection of Proceeds.............
Section 3.13. Maintenance of the Primary Insurance Policies................
Section 3.14. Realization Upon Defaulted Mortgage Loans....................
Section 3.15. REO Property.................................................
Section 3.16. Due-on-Sale Clauses; Assumption Agreements...................
Section 3.17. Trustee to Cooperate; Release of Mortgage Files..............
Section 3.18. Documents Records and Funds in Possession of Master
Servicer to Be Held for the Trustee.........................
Section 3.19. Master Servicing Compensation................................
Section 3.20. Access to Certain Documentation..............................
Section 3.21. Annual Statement as to Compliance............................
Section 3.22. Annual Independent Public Accountants' Servicing
Statement; Financial Statements.............................
Section 3.23. Errors and Omissions Insurance; Fidelity Bonds...............
ARTICLE IV
DISTRIBUTIONS AND SERVICING ADVANCES
Section 4.01. Advances.....................................................
Section 4.02. Priorities of Distribution on the Non-Group 4
Certificates................................................
Section 4.03. Priorities of Distribution on the Group 4 Certificates.......
Section 4.04. Allocation of Realized Losses on the Non-Group 4
Certificates................................................
Section 4.05. Allocation of Applied Realized Loss Amounts to the Group
4 Certificates..............................................
Section 4.06. Monthly Statements to Certificateholders.....................
Section 4.07. Determination of LIBOR.......................................
ARTICLE V
THE CERTIFICATES
Section 5.01. The Certificates.............................................
Section 5.02. Certificate Register; Registration of Transfer and
Exchange of Certificates....................................
Section 5.03. Mutilated, Destroyed, Lost or Stolen Certificates............
Section 5.04. Persons Deemed Owners........................................
Section 5.05. Access to List of Certificateholders' Names and Addresses....
Section 5.06. Maintenance of Office or Agency..............................
ARTICLE VI
THE DEPOSITOR AND THE MASTER SERVICER
Section 6.01. Respective Liabilities of the Depositor and the Master
Servicer....................................................
Section 6.02. Merger or Consolidation of the Depositor or the Master
Servicer....................................................
Section 6.03. Limitation on Liability of the Depositor, the Transferor,
the Master Servicer and Others..............................
Section 6.04. Limitation on Resignation of Master Servicer.................
Section 6.05. Sale and Assignment of Master Servicing Rights...............
ARTICLE VII
DEFAULT
Section 7.01. Events of Default............................................
Section 7.02. Trustee to Act; Appointment of Successor.....................
Section 7.03. Notification to Certificateholders...........................
ARTICLE VIII
CONCERNING THE TRUSTEE AND THE MASTER SERVICER
Section 8.01. Duties of Trustee............................................
Section 8.02. Certain Matters Affecting the Trustee........................
Section 8.03. Trustee Not Liable for Certificates or Mortgage Loans........
Section 8.04. Trustee May Own Certificates.................................
Section 8.05. Trustee's Fees and Expenses..................................
Section 8.06. Eligibility Requirements for Trustee.........................
Section 8.07. Resignation and Removal of Trustee...........................
Section 8.08. Successor Trustee............................................
Section 8.09. Merger or Consolidation of Trustee...........................
Section 8.10. Appointment of Co-Trustee or Separate Trustee................
Section 8.11. Tax Matters..................................................
Section 8.12. Periodic Filings.............................................
ARTICLE IX
TERMINATION
Section 9.01. Termination upon Liquidation or Purchase of All Mortgage
Loans.......................................................
Section 9.02. Final Distribution on the Certificates.......................
Section 9.03. Additional Termination Requirements..........................
ARTICLE X
MISCELLANEOUS PROVISIONS
Section 10.01. Amendment...................................................
Section 10.02. Recordation of Agreement; Counterparts......................
Section 10.03. Governing Law...............................................
Section 10.04. Intention of Parties........................................
Section 10.05. Notices.....................................................
Section 10.06. Severability of Provisions..................................
Section 10.07. Assignment..................................................
Section 10.08. Limitation on Rights of Certificateholders..................
Section 10.09. Inspection and Audit Rights.................................
Section 10.10. Certificates Nonassessable and Fully Paid...................
SCHEDULES
Schedule I: Mortgage Loan Schedule.......................................
Schedule II: Representations and Warranties as to the Mortgage Loans......
EXHIBITS
Exhibit A-1: Form of Class 1-A-1 Certificate.........................
Exhibit A-2: Form of Class 1-A-IO Certificate........................
Exhibit A-3: Form of Class 2-A-1 Certificate.........................
Exhibit A-4 Form of Class 2-A-2 Certificate.........................
Exhibit A-5 Form of Class 2-A-3 Certificate.........................
Exhibit A-6: Form of Class 2-A-IO Certificate........................
Exhibit A-7: Form of Class 3-A-1 Certificate.........................
Exhibit A-8: Form of Class 3-A-IO Certificate........................
Exhibit A-9: Form of Class A-R Certificate...........................
Exhibit A-10: Form of Class 4-A-1 Certificate.........................
Exhibit A-11: Form of Class 4-M-1 Certificate.........................
Exhibit A-12: Form of Class 4-M-2 Certificate.........................
Exhibit B-1: Form of X-0, X-0 or B-3 Certificate.....................
Exhibit B-2: Form of Class 4-B Certificate...........................
Exhibit C: Form of Class X-0, X-0 or B-6 Certificate...............
Exhibit D: Form of Class 4-X Certificate...........................
Exhibit E: Form of Reverse of Certificates.........................
Exhibit F: Form of Initial Certification of Master Servicer........
Exhibit G: Form of Final Certification of Master Servicer..........
Exhibit H: Transfer Affidavit......................................
Exhibit I: Form of Transferor Certificate..........................
Exhibit J: Form of Investment Letter (Non-Rule 144A)...............
Exhibit K: Form of Rule 144A Letter................................
Exhibit L: Form of Request for Release.............................
Exhibit M: Form of Certification to be Provided with Form 10-K.....
THIS POOLING AND SERVICING AGREEMENT, dated as of January 1, 2003,
among MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., a Delaware corporation,
as depositor (the "Depositor"), UBS WARBURG REAL ESTATE SECURITIES INC., a
Delaware corporation, as transferor (the "Transferor"), XXXXX FARGO BANK
MINNESOTA, N.A., a national banking association, as master servicer (the "Master
Servicer"), and JPMorgan Chase Bank, a New York banking corporation, as trustee
(the "Trustee").
WITNESSETH THAT
In consideration of the mutual agreements herein contained, the
parties hereto agree as follows:
PRELIMINARY STATEMENT
The Depositor is the owner of the Trust Fund that is hereby conveyed
to the Trustee in return for the Certificates. The Trust Fund is being conveyed
to the Trustee to create a trust for the benefit of the Certificateholders. The
Trust Fund for federal income tax purposes will consist of four REMICs.
Lower-Tier REMIC A will consist of the Group 1 Loans, the Group 2 Loans and the
Group 3 Loans, any related REO Property and all proceeds thereof in the
Distribution Account and will be evidenced by the Lower-Tier REMIC A Regular
Interests (which will be uncertificated and will represent the "regular
interests" in Lower-Tier REMIC A) and the Class A-LRA Interest as the single
"residual interest" in Lower-Tier REMIC A. The Trustee will hold the Lower-Tier
REMIC A Regular Interests.
The Middle-Tier REMIC will consist of the Lower-Tier REMIC A Regular
Interests and all proceeds thereof in the Distribution Account and will be
evidenced by the Middle-Tier REMIC A Regular Interests (which will be
uncertificated and will represent the "regular interests" in the Middle-Tier
REMIC) and the Class A-MR Interest as the single "residual interest" in the
Middle-Tier REMIC. The Trustee will hold the Middle-Tier REMIC Regular
Interests.
Lower-Tier REMIC B will consist of the Group 4 Loans, any related
REO Property and all proceeds thereof in the Distribution Account and will be
evidenced by the Lower-Tier REMIC B Regular Interests (which will be
uncertificated and will represent the "regular interests" in Lower-Tier REMIC B)
and the Class A-LRB Interest as the single "residual interest" in Lower-Tier
REMIC B. The Trustee will hold the Lower-Tier REMIC B Regular Interests.
The Upper-Tier REMIC will consist of the Middle-Tier REMIC Regular
Interests and the Lower-Tier REMIC B Regular Interests and all proceeds thereof
in the Distribution Account and will be evidenced by the Regular Certificates
(which will represent the "regular interests" in the Upper-Tier REMIC) and the
Class A-UR Interest as the single "residual interest" in the Upper-Tier REMIC.
In addition, the Group 4 Offered Certificates will represent beneficial
ownership of a "regular interest" in the Upper-Tier REMIC and the right to
receive their respective Basis Risk Carry Forward Amounts, and the Class 4-X
Certificates will represent beneficial ownership of a "regular interest" in the
Upper-Tier REMIC and the Excess Reserve Fund Account, subject to the obligation
to pay the Basis Risk Carry Forward Amounts, which portions of the Trust Fund
shall be treated as a grantor trust.
The "latest possible maturity date" for federal income tax purposes
of all interests created hereby will be the Latest Possible Maturity Date. The
Class A-R Certificates will represent the Class A-LRA Interest, Class A-LRB
Interest, the Class A-MR Interest and the Class A-UR Interest.
The following table sets forth characteristics of the Certificates,
together with the minimum denominations and integral multiples in excess thereof
in which such Classes shall be issuable (except that one Certificate of each
Class of Certificates may be issued in a different amount):
INITIAL
CERTIFICATE
PRINCIPAL INITIAL INTEGRAL
BALANCE OR PASS-THROUGH MINIMUM MULTIPLES IN
NOTIONAL AMOUNT RATE DENOMINATION EXCESS OF MINIMUM
------------ --------------- ------------ ------------ -----------------
NON-GROUP 4
CERTIFICATES
Class 1-A-1 $ 17,554,000 4.1500% (1) $ 25,000 $1
Class 1-A-IO $ 17,554,000 (2) 1.4459% (3) $ 100,000 $1
Class 2-A-1 $ 49,082,000 4.6500% (4) $ 25,000 $1
Class 2-A-2 $ 65,000,000 4.6500% (4) $ 25,000 $1
Class 2-A-3 $ 2,275,000 4.6500% (4) $ 25,000 $1
Class 2-A-IO $116,357,000(5) 0.3219% (6) $ 100,000 $1
Class 3-A-1 $ 24,294,000 4.9500% (7) $ 25,000 $1
Class 3-A-IO $ 24,294,000(8) 0.7010% (9) $ 100,000 $1
Class A-R $ 100 5.6510% (7) $ 100 N/A
Class B-1 $ 2,614,000 5.1455% (10) $ 25,000 $1
Class B-2 $ 898,000 5.1455% (10) $ 25,000 $1
Class B-3 $ 735,000 5.1455% (10) $ 25,000 $1
Class B-4 $ 327,000 5.1455% (10) $ 25,000 $1
Class B-5 $ 245,000 5.1455% (10) $ 25,000 $1
Class B-6 $ 327,011 5.1455% (10) $ 25,000 $1
GROUP 4
CERTIFICATES
Class 4-A-1 $83,975,857 1.8700% (11) $ 25,000 $1
Class 4-M-1 $ 2,999,138 2.8700% (11) $ 25,000 $1
Class 4-M-2 $ 2,537,732 3.8700% (11) $ 25,000 $1
Class 4-B $ 1,845,623 5.3700% (11) $ 25,000 $1
Class 4-X $ 922,812 N/A (12) $ $1
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(1) The Pass-Through Rate for the Class 1-A-1 Certificates for each
Distribution Date will equal the lesser of (i) the weighted average of the
Net Mortgage Rates on the Group 1 Mortgage Loans, weighted on the basis of
the respective Scheduled Principal Balances, as of the first day of the
related Interest Accrual Period (after taking into account scheduled
payments of principal on that date) and (ii) 4.15%.
(2) The Class 1-A-IO Certificates are Interest-Only Certificates, will not be
entitled to distributions in respect of principal and will bear interest
on their Notional Amount.
(3) For each Distribution Date occurring after the first Distribution Date,
interest will accrue on the Class 1-A-IO Certificates at a per annum rate
equal to (i) the weighted average of the Net Mortgage Rates on the Group 1
Mortgage Loans, weighted on the basis of their respective Scheduled
Principal Balances, as of the first day of the related Interest Accrual
Period (after taking into account scheduled payments of principal on that
date), minus (ii) the Pass-Through Rate for the Class 1-A-1 Certificates
for such Distribution Date.
(4) The Pass-Through Rate for each of the Class 2-A-1, Class 2-A-2 and Class
2-A-3 Certificates for each Distribution Date will equal the lesser of (i)
the weighted average of the Net Mortgage Rates on the Group 2 Mortgage
Loans, weighted on the basis of the respective Scheduled Principal
Balances, as of the first day of the related Interest Accrual Period
(after taking into account scheduled payments of principal on that date)
and (ii) 4.65%.
(5) The Class 2-A-IO Certificates are Interest-Only Certificates, will not be
entitled to distributions in respect of principal and will bear interest
on their Notional Amount.
(6) For each Distribution Date occurring after the first Distribution Date,
interest will accrue on the Class 2-A-IO Certificates at a per annum rate
equal to the weighted average of the Net Mortgage Rates on the Group 2
Mortgage Loans, weighted on the basis of their respective Scheduled
Principal Balances, as of the first day of the related Interest Accrual
Period (after taking into account scheduled payments of principal on that
date), minus (ii) the Pass-Through Rate for the Class 2-A-1, Class 2-A-2
and Class 2-A-3 Certificates for such Distribution Date.
(7) The Pass-Through Rate for the Class 3-A-1 Certificates for each
Distribution Date will equal the lesser of (i) the weighted average of the
Net Mortgage Rates on the Group 3 Mortgage Loans, weighted on the basis of
the respective Scheduled Principal Balances, as of the first day of the
related Interest Accrual Period (after taking into account scheduled
payments of principal on that date) and (ii) 4.95%. The Pass-Through Rate
for the Class A-R Certificates for each Distribution Date will equal the
weighted average of the Net Mortgage Rates on the Group 3 Mortgage Loans,
weighted on the basis of the respective Scheduled Principal Balances, as
of the first day of the related Interest Accrual Period (after taking into
account scheduled payments of principal on that date).
(8) The Class 3-A-IO Certificates are Interest-Only Certificates, will not be
entitled to distributions in respect of principal and will bear interest
on their Notional Amount.
(9) For each Distribution Date occurring after the first Distribution Date,
interest will accrue on the Class 3-A-IO Certificates at a per annum rate
equal to (i) the weighted average of the Net Mortgage Rates on the Group 3
Mortgage Loans, weighted on the basis of their respective Scheduled
Principal Balances, as of the first day of the related Interest Accrual
Period (after taking into account scheduled payments of principal on that
date), minus (ii) the Pass-Through Rate for the Class 3-A-1 Certificates
for such Distribution Date.
(10) The Pass-Through Rates for the Class B-1, Class B-2, Class B-3, Class B-4,
Class B-5 and Class B-6 Certificates for each Distribution Date will equal
the weighted average (weighted on the basis of the portion of the
aggregate Certificate Principal Balance of the Non-Group 4 Junior
Certificates attributable to each Loan Group (other than Loan Group 4) as
of the Business Day immediately prior to that Distribution Date) of the
Net Mortgage Rates on the Mortgage Loans in each Loan Group (other than
Group 4), weighted on the basis of the respective Scheduled Principal
Balances, as of the first day of the related Interest Accrual Period
(after taking into account scheduled payments of principal on that date).
(11) Subject to the maximum rate described in the next sentence, the
Pass-Through Rate for each of the Class 4-A-1, Class 4-M-1, Class 4-M-2
and Class 4-B Certificates will equal LIBOR plus 0.50%, 1.50%, 2.50% and
4.00%, respectively (subject to increases to 1.00%, 2.25%, 3.75% and
6.00%, respectively, after the first Distribution Date on which the
Optional Termination for the Group 4 Certificates may be exercised ). The
Pass-Through Rates for each of the Class 4-A-1, Class 4-M-1, Class 4-M-2
and Class 4-B Certificates will be subject to a maximum per annum rate
equal to the Net WAC Rate (as defined herein).
(12) The Class 4-X Certificates will represent a regular interest in the
Upper-Tier REMIC (the "Class 4-X Interest"). As of any Distribution Date,
the Class 4-X Interest shall have a notional principal balance equal to
the aggregate of the principal balances of the Lower-Tier REMIC B Regular
Interests as of the first day of the related Interest Accrual Period. With
respect to any Interest Accrual Period, the Class 4-X Interest shall bear
interest at a rate equal to the excess, if any of the weighted average of
the interest rates on the Lower-Tier REMIC B Regular Interests, over the
product of (i) 2 and (ii) the weighted average interest rates of the
Lower-Tier REMIC B Regular Interests, where the Class 4-Accrual-LB
Interest is subject to a cap equal to zero and each Lower-Tier REMIC B
Accretion Directed Class is subject to a cap equal to the Pass-Through
Rate on its Corresponding Class of Upper-Tier REMIC Regular Interest. With
respect to any Distribution Date, interest that so accrues on the notional
principal balance of the Class 4-X Interest shall be deferred in an amount
equal to any increase in the Overcollateralized Amount on such
Distribution Date. Such deferred interest shall not itself bear interest.
The Class 4-X Certificates also will represent beneficial ownership of the
Excess Reserve Fund Account, subject to the obligation to make payments
from the Excess Reserve Fund Account, in respect of Basis Risk Carry
Forward Amounts. For federal income tax purposes, the Trustee will treat a
Class 4-X Certificateholder's obligation to make such payments as payments
made pursuant to an interest rate cap contract written by the Class 4-X
Certificateholders in favor of each Class of Group 4 Offered Certificates.
Such rights of the Class 4-X Certificateholders and the Group 4 Offered
Certificateholders shall be treated as held in a portion of the Trust Fund
that is treated as a grantor trust under subpart E, Part I of subchapter J
of the Code.
Set forth below are designations of Classes of Certificates to the
categories used herein:
Book-Entry Certificates...... All Classes of Offered Certificates other than
the Physical Certificates.
ERISA-Restricted
Certificates............... The Residual Certificates and the Private
Certificates.
Group 4 Certificates......... The Class 4-A-1, Class 4-M-1, Class 4-M-2, Class
4-B and Class 4-X Certificates.
Group 4 Junior Certificates.. The Class 4-B Certificates.
Group 4 Mezzanine
Certificates................ The Class 4-M-1 and Class 4-M-2 Certificates.
Group 4 Offered Certificates. The Class 4-A-1, Class 4-M-1, Class 4-M-2 and
Class 4-B Certificates.
Group 4 Senior Certificates.. The Class 4-A-1 Certificates.
Interest-Only Certificates... The Class 1-A-IO, Class 2-A-IO and Class 3-A-IO
Certificates.
LIBOR Certificates........... The Class 4-A-1, Class 4-M-1, Class 4-M-2 and
Class 4-B Certificates.
Non-Group 4 Junior
Certificates................ The Class B-1, Class B-2, Class B-3, Class B-4,
Class B-5 and Class B-6 Certificates.
Non-Group.................... 4 Senior Certificates The Class 1-A-1, Class
1-A-IO, Class 2-A-1, Class 2-A-2, Class 2-A-3,
Class 2-A-IO, Class 3-A-1, Class 3-A-IO and Class
A-R Certificates.
Offered Certificates......... All Classes of Certificates other than the Private
Certificates.
Physical Certificates........ The Private Certificates and the Residual
Certificates.
Private Certificates......... The Class 4-X, Class B-4, Class B-5 and Class B-6
Certificates.
Rating Agencies.............. Xxxxx'x and S&P.
Regular Certificates......... All Classes of Certificates, other than the
Residual Certificates.
Residual Certificates........ The Class A-R Certificates.
Defined terms and provisions herein relating to statistical rating
agencies not designated above as Rating Agencies shall be of no force or effect.
ARTICLE I
DEFINITIONS
Section 1.01 Definitions.
Whenever used in this Agreement, the following words and phrases,
unless the context otherwise requires, shall have the following meanings:
Accrued Certificate Interest: With respect to any Distribution Date
and any interest-bearing Class, the sum of (i) one month's interest accrued
during the related Interest Accrual Period at the Pass-Through Rate for such
Class on the related Class Principal Balance or Notional Amount, as applicable,
subject to reduction as provided in Section 4.02(c) and 4.03(c) and (ii) in the
case of the Non-Group 4 Certificates only, any Class Unpaid Interest Amounts for
such Class.
Adjustment Amount: With respect to each anniversary of the Cut-off
Date and the Non-Group 4 Certificates, the amount, if any, by which the Special
Hazard Loss Coverage Amount (without giving effect to the deduction of the
Adjustment Amount for such anniversary) exceeds the greatest of (x) the product
of 1% and the outstanding principal balance of all the Non-Group 4 Mortgage
Loans on the Distribution Date immediately preceding such anniversary, (y) the
outstanding principal balance of Non-Group 4 Mortgage Loans secured by Mortgaged
Properties in the highest California zip code concentration on the Distribution
Date immediately preceding such anniversary, and (z) twice the outstanding
principal balance of the Non-Group 4 Mortgage Loan which has the largest
outstanding principal balance on the Distribution Date immediately preceding
such anniversary.
Adjustment Date: As to each Non-Group 4 Mortgage Loan, the date on
which the Mortgage Rate is adjusted in accordance with the terms of the related
Mortgage Note and Mortgage.
Advance: An advance of principal or interest required to be made by
the applicable Servicer pursuant to the related Purchase and Servicing Agreement
or required to be made by the Master Servicer with respect to any Distribution
Date pursuant to Section 4.01, the amount of any such payment being equal to the
aggregate of payments of principal and interest (net of the Servicing Fee and
net of any net income in the case of any REO Property) on the Mortgage Loans
that were due on the related Due Date and not received as of the close of
business on the related Determination Date, less the aggregate amount of any
such delinquent payments that the Master Servicer or the applicable Servicer, as
the case may be, has determined would constitute a Nonrecoverable Advance if
advanced.
Affiliate: When used with reference to a specified Person that (i)
directly or indirectly controls or is controlled by or is under common control
with the specified Person, (ii) is an officer of, partner in or trustee of, or
serves in a similar capacity with respect to, the specified person or of which
the specified Person is an officer, partner or trustee, or with respect to which
the specified Person serves in a similar capacity, or (iii) directly or
indirectly is the beneficial owner of 10% or more of any class of equity
securities of the specified Person or of which the specified Person is directly
or indirectly the owner of 10% or more of any class of equity securities.
Aggregate Junior Optimal Principal Amount: For any Distribution
Date, the sum of the Junior Optimal Principal Amounts for the Non-Group 4
Mortgage Loans.
Aggregate Subordinate Percentage: For any Distribution Date, the
aggregate of the Certificate Principal Balances for the Non-Group 4 Junior
Certificates divided by the aggregate of the Scheduled Principal Balances of the
Non-Group 4 Mortgage Loans.
Agreement: This Pooling and Servicing Agreement and all amendments
or supplements hereto.
Allocable Share: For any Distribution Date and each Class of
Non-Group 4 Junior Certificates, the portion of the Aggregate Junior Optimal
Principal Amount allocable to such Class, equal to the product of the Aggregate
Junior Optimal Principal Amount on such Distribution Date and a fraction, the
numerator of which is the related Certificate Principal Balance thereof and the
denominator of which is the aggregate of the Certificate Principal Balances of
the Non-Group 4 Junior Certificates.
American Mortgage Express: American Mortgage Express Corporation and
its successors and assigns, in its capacity as seller of the American Mortgage
Express Mortgage Loans.
American Mortgage Express Loan Sale Date: The date that the
Transferor purchased the American Mortgage Express Mortgage Loans from American
Mortgage Express as set forth on the Mortgage Loan Schedule under the heading
"Loan Sale Date."
American Mortgage Express Mortgage Loans: The Mortgage Loans for
which American Mortgage Express is listed as "Loan Seller" in the Mortgage Loan
Schedule.
American Mortgage Express Purchase and Servicing Agreement: Solely
with respect to the American Mortgage Express Mortgage Loans, the Master
Seller's Purchase, Warranties and Interim Servicing Agreement, dated as of
September 1, 2002, between the Transferor and American Mortgage Express, as the
same may be amended from time to time, and those certain assignment and
conveyances and assignment and recognition agreements, in each case related to
the American Mortgage Express Mortgage Loans.
Amount Held for Future Distribution: As to any Distribution Date and
any Non-Group 4 Mortgage Loan or Group of Non-Group 4 Mortgage Loans, the
aggregate amount held in the Collection Account at the close of business on the
related Servicer Remittance Date with respect to such Mortgage Loan or Group of
Mortgage Loans at the close of business on the related Servicer Remittance Date
on account of (i) Principal Prepayments received after the related Prepayment
Period, and Liquidation Proceeds and Insurance Proceeds received in the month of
such Distribution Date and (ii) all Scheduled Payments due after the related Due
Date.
Apportioned Junior Principal Distribution Amount: For any
Distribution Date and any Class of Non-Group 4 Junior Certificates, the product
of (i) the Junior Principal Distribution Amount and (ii) the applicable
Apportionment Fraction.
Apportionment Fraction: For any Distribution Date, in the event that
the Class Principal Balance of the Non-Group 4 Senior Certificates of a
Certificate Group or Certificate Groups has been reduced to zero, a fraction the
numerator of which is equal to the sum of the Junior Optimal Principal Amounts
of each Non-Group 4 Loan Group with respect to which the Class Principal Balance
of the related Non-Group 4 Senior Certificates has been reduced to zero, and the
denominator of which is equal to the Aggregate Junior Optimal Principal Amount.
Applied Realized Loss Amount: With respect to any Distribution Date,
the amount, if any, by which the aggregate Class Certificate Balance of the
Group 4 Offered Certificates after distributions of principal on such
Distribution Date exceeds the aggregate Scheduled Principal Balance of the Group
4 Mortgage Loans for such Distribution Date.
Appraised Value: With respect to any Mortgage Loan, the Appraised
Value of the related Mortgaged Property shall be: (i) with respect to a Mortgage
Loan other than a Refinancing Mortgage Loan, the lesser of (a) the value of the
Mortgaged Property based upon the appraisal made at the time of the origination
of such Mortgage Loan and (b) the sales price of the Mortgaged Property at the
time of the origination of such Mortgage Loan; and (ii) with respect to a
Refinancing Mortgage Loan, the value of the Mortgaged Property based upon the
appraisal made-at the time of the origination of such Refinancing Mortgage Loan
as modified by an updated appraisal.
Assignment: An individual assignment of a Mortgage, notice of
transfer or equivalent instrument in recordable form, sufficient under the laws
of the jurisdiction wherein the related Mortgaged Property is located to reflect
of record the sale or transfer of the Mortgage Loan.
Assignment Agreements: Each of the Countrywide Assignment Agreement,
the Xxxxxx Assignment Agreement, the Homestar Assignment Agreement, the
Provident Assignment Agreement, the GMAC Assignment Agreement and the United
Assignment Agreement.
Bank One: Bank One, N.A. and its successors and assigns, in its
capacity as seller and servicer of the Bank One Mortgage Loans.
Bank One Loan Sale Date: The date that the Transferor purchased the
Bank One Mortgage Loans from Bank One as set forth on the Mortgage Loan Schedule
under the heading "Loan Sale Date."
Bank One Mortgage Loans: The Mortgage Loans for which Bank One is
listed as "Loan Seller" and "Servicer" in the Mortgage Loan Schedule.
Bank One Purchase and Servicing Agreement: Solely with respect to
the Bank One Mortgage Loans, the Master Seller's Purchase, Warranties and
Interim Servicing Agreement, dated as of November 1, 2002, between the
Transferor and Bank One, as the same may be amended from time to time, and those
certain assignment and conveyances and assignment and recognition agreements, in
each case related to the Bank One Mortgage Loans.
Bankruptcy Code: The United States Bankruptcy Reform Act of 1978, as
amended.
Bankruptcy Coverage Termination Date: The point in time at which the
Bankruptcy Loss Coverage Amount is reduced to zero.
Bankruptcy Loss: With respect to any Non-Group 4 Mortgage Loan, a
Deficient Valuation or Debt Service Reduction as reported by the applicable
Servicer to the Master Servicer; provided, however, that a Bankruptcy Loss shall
not be deemed a Bankruptcy Loss hereunder so long as the Master Servicer has
notified the Trustee in writing that either the Master Servicer or the
applicable Servicer is diligently pursuing any remedies that may exist in
connection with the related Mortgage Loan and either (A) the related Mortgage
Loan is not in default with regard to payments due thereunder or (B) delinquent
payments of principal and interest under the related Mortgage Loan and any
related escrow payments in respect of such Mortgage Loan are being advanced on a
current basis by either the Master Servicer or the applicable Servicer, in
either case without giving effect to any Debt Service Reduction or Deficient
Valuation.
Bankruptcy Loss Coverage Amount: As of any Distribution Date, the
Bankruptcy Loss Coverage Amount shall equal the Initial Bankruptcy Coverage
Amount as reduced by (i) the aggregate amount of Bankruptcy Losses allocated to
the Non-Group 4 Certificates since the Cut-off Date and (ii) any permissible
reductions in the Bankruptcy Loss Coverage Amount as evidenced by a letter of
each Rating Agency to the Trustee to the effect that any such reduction will not
result in a downgrading of the then-current ratings assigned to the Classes of
Non-Group 4 Certificates rated by it.
Basic Principal Distribution Amount: With respect to any
Distribution Date and the Group 4 Certificates, the excess of (i) the Principal
Remittance Amount of the Group 4 Loans for such Distribution Date over (ii) the
Excess Overcollateralized Amount, if any, for such Distribution Date, but not
less than zero.
Basis Risk Carry Forward Amount: With respect to each Class of Group
4 Offered Certificates, as of any Distribution Date, the sum of (A) if on such
Distribution Date the Pass-Through Rate for any Class of Group 4 Offered
Certificates is based upon the Net WAC Rate, the excess of (i) the amount of
interest such Class of Certificates would otherwise be entitled to receive on
such Distribution Date had such rate been calculated without giving effect to
the Net WAC Rate, over (ii) the amount of interest payable on such Class of
Certificates at the Net WAC Rate for such Distribution Date and (B) the Basis
Risk Carry Forward Amount for such Class of Certificates for all previous
Distribution Dates not previously paid, together with interest thereon at a rate
equal to the Pass-Through Rate for such Class of Certificates for such
Distribution Date without giving effect to the Net WAC Rate.
Basis Risk Payment: For any Distribution Date, an amount equal to
the aggregate of the Basis Risk Carry Forward Amounts for such Distribution
Date; provided, however, that, with respect to any Distribution Date, the
payment cannot exceed the Class 4-X Distributable Amount (prior to any reduction
for Basis Risk Payments).
Book-Entry Certificates: As specified in the Preliminary Statement.
Business Day: Any day other than (i) a Saturday or a Sunday, or (ii)
a day on which banking institutions in the City of New York, New York,
Minnesota, Maryland, or the cities in which the Corporate Trust Office of the
Trustee is located are authorized or obligated by law or executive order to be
closed.
Certificate: Any one of the Certificates executed and authenticated
by the Trustee in substantially the forms attached hereto as exhibits.
Certificate Owner: With respect to a Book-Entry Certificate, the
Person who is the beneficial owner of such Book-Entry Certificate.
Certificate Principal Balance: With respect to any Certificate at
any date, the maximum dollar amount of principal to which the Holder thereof is
then entitled hereunder, such amount being equal to the Denomination thereof
minus the sum of (i) all distributions of principal previously made with respect
thereto and (ii) all Realized Losses allocated thereto and, in the case of any
Non-Group 4 Junior Certificates, all other reductions in Certificate Principal
Balance previously allocated thereto pursuant to Section 4.04.
Certificate Register: The register maintained pursuant to Section
5.02 hereof.
Certificateholder or Holder: The person in whose name a Certificate
is registered in the Certificate Register, except that, solely for the purpose
of giving any consent pursuant to this Agreement, any Certificate registered in
the name of the Master Servicer or the Depositor or any affiliate of the Master
Servicer or the Depositor, as applicable, shall be deemed not to be Outstanding
and the Percentage Interest evidenced thereby shall not be taken into account in
determining whether the requisite amount of Percentage Interests necessary to
effect such consent has been obtained; provided, however, that if any such
Person (including the Master Servicer or the Depositor) owns 100% of the
Percentage Interests evidenced by a Class of Certificates, such Certificates
shall be deemed to be Outstanding for purposes of any provision hereof that
requires the consent of the Holders of Certificates of a particular Class as a
condition to the taking of any action hereunder. The Trustee is entitled to rely
conclusively on a certification of the Master Servicer or the Depositor or any
affiliate of the Master Servicer or the Depositor, as applicable, in determining
which Certificates are registered in the name of an affiliate of the Master
Servicer or the Depositor.
Class: All Certificates bearing the same class designation as set
forth in the Preliminary Statement, each Lower-Tier REMIC A Regular Interest,
Lower-Tier REMIC B Regular Interest, Middle-Tier REMIC Regular Interest and
Upper-Tier REMIC Regular Interest.
Class 4-A-1 Principal Distribution Amount: With respect to any
Distribution Date, the excess of (i) the aggregate Certificate Principal Balance
of the Class 4-A-1 Certificates immediately prior to such Distribution Date over
(ii) the lesser of (A) 82.00% of the aggregate Scheduled Principal Balance of
the Group 4 Mortgage Loans for such Distribution Date and (B) the excess, if
any, of the Scheduled Principal Balances of the Group 4 Mortgage Loans for such
Distribution Date over the product of (1) 1.00% and (2) the Group 4 Cut-Off Date
Pool Balance.
Class 4-B Principal Distribution Amount: With respect to any
Distribution Date, the excess of (i) the sum of (A) the aggregate Certificate
Principal Balance of the Class 4-A-1 Certificates (after taking into account
distribution of the Class 4-A-1 Principal Distribution Amount on such
Distribution Date), (B) the Certificate Principal Balance of the Class 4-M-1
Certificates (after taking into account distribution of the Class 4-M-1
Principal Distribution Amount on such Distribution Date), (C) the Certificate
Principal Balance of the Class 4-M-2 Certificates (after taking into account
distribution of the Class 4-M-2 Principal Distribution Amount for such
Distribution Date) and (D) the Certificate Principal Balance of the Class 4-B
Certificates immediately prior to such Distribution Date over (ii) the lesser of
(A) 98.00% of the aggregate Scheduled Principal Balance of the Group 4 Mortgage
Loans for such Distribution Date and (B) the excess, if any, of the aggregate
Scheduled Principal Balance of the Group 4 Mortgage Loans for such Distribution
Date over the product of (1) 1.00% and (2) the Group 4 Cut-Off Date Pool
Balance.
Class 4-M-1 Principal Distribution Amount: With respect to any
Distribution Date, the excess of (i) the sum of (A) the aggregate Certificate
Principal Balance of the Class 4-A-1 Certificates (after taking into account
distribution of the Class 4-A-1 Principal Distribution Amount on such
Distribution Date), and (B) the Certificate Principal Balance of the Class 4-M-1
Certificates immediately prior to such Distribution Date over (ii) the lesser of
(A) 88.50% of the aggregate Scheduled Principal Balance of the Group 4 Mortgage
Loans for such Distribution Date and (B) the excess, if any, of the aggregate
Scheduled Principal Balance of the Group 4 Mortgage Loans for such Distribution
Date over the product of (1) 1.00% and (2) the Group 4 Cut-Off Date Pool
Balance.
Class 4-M-2 Principal Distribution Amount: With respect to any
Distribution Date, the excess of (i) the sum of (A) the aggregate Certificate
Principal Balance of the Class 4-A-1 Certificates (after taking into account
distribution of the Class 4-A-1 Principal Distribution Amount on such
Distribution Date), (B) the Certificate Principal Balance of the Class 4-M-1
Certificates (after taking into account distribution of the Class 4-M-1
Principal Distribution Amount on such Distribution Date), and (C) the
Certificate Principal Balance of the Class 4-M-2 Certificates immediately prior
to such Distribution Date over (ii) the lesser of (A) 94.00% of the aggregate
Scheduled Principal Balance of the Group 4 Mortgage Loans for such Distribution
Date and (B) the excess, if any, of the aggregate Scheduled Principal Balance of
the Group 4 Mortgage Loans for such Distribution Date over the product of (1)
1.00% and (2) the Group 4 Cut-Off Date Pool Balance.
Class A-LRA Interest: The sole class of "residual interest" in
Lower-Tier REMIC A.
Class A-LRB Interest: The sole class of "residual interest" in
Lower-Tier REMIC B.
Class A-MR Interest: The sole class of "residual interest" in the
Middle-Tier REMIC.
Class A-UR Interest: The sole class of "residual interest" in the
Upper-Tier REMIC.
Class Interest Shortfall: As to any Distribution Date and Class of
Non-Group 4 Certificates, the amount by which the amount described in clause (i)
of the definition of Accrued Certificate Interest for such Class exceeds the
amount of interest actually distributed on such Class on such Distribution Date
pursuant to such clause (i).
Class Prepayment Distribution Trigger: With respect to any Class of
the Non-Group 4 Junior Certificates and any Distribution Date, if either (i) the
Fractional Interest for such Class with respect to that Distribution Date,
equals or exceeds such Class's Fractional Interest calculated as of the Closing
Date or (ii) such Class of Non-Group 4 Junior Certificates is the only Class of
Non-Group 4 Junior Certificates then outstanding.
Class Principal Balance: With respect to any Class and as to any
date of determination, the aggregate of the Certificate Principal Balances of
all Certificates of such Class as of such date.
Class Unpaid Interest Amounts: As to any Distribution Date and Class
of Non-Group 4 Certificates, the amount by which the aggregate Class Interest
Shortfalls for such Class on prior Distribution Dates exceeds the amount
distributed on such Class on prior Distribution Dates pursuant to clause (ii) of
the definition of Accrued Certificate Interest.
Class 4-X Distributable Amount: On any Distribution Date the sum of
(i) as a distribution in respect of interest, the amount of interest that has
accrued on the Class 4-X Interest and not applied as an Extra Principal
Distribution Amount on such Distribution Date, plus any such accrued interest
remaining undistributed from prior Distribution Dates, plus (ii) as a
distribution in respect of principal, any portion of the principal balance of
the Class 4-X Interest which is distributable as an Overcollateralization
Reduction Amount, minus (iii) any amounts paid as a Basis Risk Payment.
Class 4-X Interest: The Upper-Tier REMIC Regular Interest
represented by the Class 4-X Certificates as specified and described in the
Preliminary Statement and the related footnote thereto.
Closing Date: January 30, 2003.
Code: The Internal Revenue Code of 1986, including any successor or
amendatory provisions.
Collection Account: The separate Eligible Account or Accounts
created and maintained by the Master Servicer pursuant to Section 3.07 with a
depository institution in the name of the Master Servicer for the benefit of the
Trustee on behalf of Certificateholders and designated "JPMorgan Chase Bank in
trust for the registered holders of MASTR Adjustable Rate Mortgages Trust
2003-1, Mortgage Pass-Through Certificates Series 2003-1."
Compensating Interest: With respect to any Distribution Date, an
amount equal to the lesser of:
(a) with respect to any Servicer, the aggregate of the Prepayment
Interest Shortfalls on Mortgage Loans serviced by such Servicer for the related
Distribution Date and
(b) with respect to any Servicer, the aggregate Servicing Fees due
to the applicable Servicer for such Distribution Date.
If a Servicer fails to make its required payment of Compensating
Interest on any Distribution Date, the Master Servicer will be required to make
such payment of Compensating Interest to the same extent that such Servicer was
required to make such payment of Compensating Interest.
Concord: Concord Mortgage Company and its successors and assigns, in
its capacity as seller of the Concord Mortgage Loans.
Concord Loan Sale Date: The date that the Transferor purchased the
Concord Mortgage Loans from Concord as set forth on the Mortgage Loan Schedule
under the heading "Loan Sale Date."
Concord Mortgage Loans: The Mortgage Loans for which Concord is
listed as "Loan Seller" in the Mortgage Loan Schedule.
Concord Purchase and Servicing Agreement: Solely with respect to the
Concord Mortgage Loans, the Master Seller's Purchase, Warranties and Interim
Servicing Agreement, dated as of September 1, 2002, between the Transferor and
Concord, as the same may be amended from time to time, and those certain
assignment and conveyances and assignment and recognition agreements, in each
case related to the Concord Mortgage Loans.
Corporate Trust Office: The designated office of the Trustee at
which at any particular time its corporate trust business with respect to this
Agreement shall be administered, which office at the date of the execution of
this Agreement is located at 0 Xxx Xxxx Xxxxx, 0xx Xxxxx, Xxx Xxxx, Xxx Xxxx
00000, Attention: Institutional Trust Services/Structured Finance--MASTR
Adjustable Rate Mortgages Trust 2003-1, which is the address to which
appropriate notices to and correspondence with the Trustee should be directed.
Corresponding Class or Classes of Certificates and Corresponding
Middle-Tier REMIC Regular Interests: With respect to each Middle-Tier REMIC
Regular Interest and Class of Certificates appearing opposite each other, as
follows:
Corresponding Middle-Tier Corresponding Class or Classes
REMIC Regular Interest Certificates
---------------------- ------------------------------
Class 1-A-M1 Interest Class 1-A-1 Certificates
Class 2-A-M1 Interest Class 2-A-1 Certificates,
Class 2-A-2 Certificates,
and Class 2-A-3 Certificates
Class 3-A-M1 Interest Class 3-A-1
Class B-M1 Interest Class B-1 Certificates
Class B-M2 Interest Class B-2 Certificates
Class B-M3 Interest Class B-3 Certificates
Class B-M4 Interest Class B-4 Certificates
Class B-M5 Interest Class B-5 Certificates
Class B-M6 Interest Class B-6 Certificates
Corresponding Upper-Tier REMIC Regular Interest: As defined in
Section 2.07(d).
Countrywide: Countrywide Home Loans, Inc. and its successors and
assigns, in its capacity as seller of the Countrywide Mortgage Loans.
Countrywide Assignment Agreement: The Assignment, Assumption and
Recognition Agreement, dated as of January 30, 2003, among Countrywide, the
Depositor and the Transferor.
Countrywide Loan Sale Date: The date that the Transferor purchased
the Countrywide Mortgage Loans from Countrywide as set forth on the Mortgage
Loan Schedule under the heading "Loan Sale Date."
Countrywide Mortgage Loans: The Mortgage Loans for which Countrywide
is listed as "Loan Seller" in the Mortgage Loan Schedule.
Countrywide Purchase and Servicing Agreement: Solely with respect to
the Countrywide Mortgage Loans, the Mortgage Loan Purchase and Sale Agreement,
dated as of November 1, 2001, between the Transferor and Countrywide, as the
same may be amended from time to time, and those certain assignment and
conveyances and assignment and recognition agreements, in each case related to
the Countrywide Mortgage Loans.
Countrywide Servicing: Countrywide Home Loans Servicing LP and its
successors and assigns, in its capacity as servicer of the Countrywide Mortgage
Loans.
Cross-Over Date: The Distribution Date on which the Class Principal
Balances of the Non-Group 4 Junior Certificates have been reduced to zero.
Cut-off Date: January 1, 2003.
Cut-off Date Pool Balance: $92,281,162 with respect to the Group 4
Mortgage Loans and $163,351,111 with respect to the Non-Group 4 Mortgage Loans,
as applicable.
Cut-off Date Principal Balance: As to any Mortgage Loan, the
Scheduled Principal Balance thereof as of the close of business on the Cut-off
Date.
Debt Service Reduction: With respect to any Non-Group 4 Mortgage
Loan, a reduction by a court of competent jurisdiction in a proceeding under the
Bankruptcy Code in the Scheduled Payment for such Mortgage Loan which became
final and non-appealable, except such a reduction resulting from a Deficient
Valuation or any reduction that results in a permanent forgiveness of principal.
Defective Mortgage Loan: Any Mortgage Loan which is required to
be repurchased pursuant to Section 2.02 or 2.03.
Deficient Valuation: With respect to any Mortgage Non-Group 4 Loan,
a valuation by a court of competent jurisdiction of the Mortgaged Property in an
amount less than the then-outstanding indebtedness under the Mortgage Loan, or
any reduction in the amount of principal to be paid in connection with any
Scheduled Payment that results in a permanent forgiveness of principal, which
valuation or reduction results from an order of such court which is final and
non-appealable in a proceeding under the Bankruptcy Code.
Definitive Certificates: Any Certificate evidenced by a Physical
Certificate and any Certificate issued in lieu of a Book-Entry Certificate
pursuant to Section 5.02(e).
Deleted Mortgage Loan: As defined in Section 2.03 hereof.
Denomination: With respect to each Certificate, the amount set forth
on the face thereof as the "Initial Certificate Principal Balance of this
Certificate" or "Initial Notional Amount of this Certificate" appearing on the
face thereof.
Depositor: Mortgage Asset Securitization Transactions, Inc., a
Delaware corporation, or its successor in interest.
Depository: The initial Depository shall be The Depository Trust
Company, the nominee of which is CEDE & Co., as the registered Holder of the
Book-Entry Certificates. The Depository shall at all times be a "clearing
corporation" as defined in Section 8-102(3) of the Uniform Commercial Code of
the State of New York.
Depository Participant: A broker, dealer, bank or other financial
institution or other Person for whom from time to time a Depository effects
book-entry transfers and pledges of securities deposited with the Depository.
Determination Date: The date on which a Servicer is required to
determine the amount it is required to advance pursuant to the applicable
Purchase and Servicing Agreement.
Distribution Account: The separate Eligible Account created and
maintained by the Trustee pursuant to Section 3.07 in the name of the Trustee
for the benefit of the Certificateholders and designated "JPMorgan Chase Bank in
trust for registered holders of MASTR Adjustable Rate Mortgages Trust 2003-1
Mortgage Pass-Through Certificates, Series 2003-1." Funds in the Distribution
Account shall be held in trust for the Certificateholders for the uses and
purposes set forth in this Agreement.
Distribution Account Deposit Date: As to any Distribution Date, one
Business Day prior to such Distribution Date.
Distribution Date: The 25th day of each calendar month after the
initial issuance of the Certificates, or if such 25th day is not a Business Day,
the next succeeding Business Day, commencing in February 2003.
Xxxxxx: Xxxxxx Savings and Loan Association, F.A. and its successors
and assigns, in its capacity as seller of the Xxxxxx Mortgage Loans.
Xxxxxx Assignment Agreement: The Assignment, Assumption and
Recognition Agreement, dated as of January 30, 2003, among Xxxxxx, the Depositor
and the Transferor.
Xxxxxx Loan Sale Date: The date that the Transferor purchased the
Xxxxxx Mortgage Loans from Xxxxxx as set forth on the Mortgage Loan Schedule
under the heading "Loan Sale Date."
Xxxxxx Mortgage Loans: The Mortgage Loans for which Xxxxxx is listed
as "Loan Seller" in the Mortgage Loan Schedule.
Xxxxxx Purchase and Servicing Agreement: Solely with respect to the
Xxxxxx Mortgage Loans, the Master Seller's Purchase, Warranties and Interim
Servicing Agreement, dated as of August 1, 2002, between the Transferor and
Xxxxxx, as the same may be amended from time to time, and those certain
assignment and conveyances and assignment and recognition agreements, in each
case related to the Xxxxxx Mortgage Loans.
Due Date: With respect to any Distribution Date, the first day of
the month in which the related Distribution Date occurs.
Due Period: With respect to any Distribution Date, the period
commencing on the second day of the calendar month preceding the month in which
the Distribution Date occurs and ending on the first day of the calendar month
in which the Distribution Date occurs.
Eligible Account: Any of (i) an account or accounts maintained with
a federal or state chartered depository institution or trust company the
short-term unsecured debt obligations of which (or, in the case of a depository
institution or trust company that is the principal subsidiary of a holding
company, the debt obligations of such holding company) have short-term ratings
of A-1+ by S&P and P-1 by Xxxxx'x at the time any amounts are held on deposit
therein, or (ii) an account or accounts in a depository institution or trust
company (the short-term unsecured debt obligations of which (or, in the case of
a depository institution or trust company that is the principal subsidiary of a
holding company, the debt obligations of such holding company) have short-term
ratings of A-1+ by S&P and P-1 by Xxxxx'x at the time any amounts are held on
deposit therein) in which such accounts are insured by the FDIC (to the limits
established by the FDIC) and the uninsured deposits in which accounts are
otherwise secured such that, as evidenced by an Opinion of Counsel delivered to
the Trustee and to each Rating Agency, the Certificateholders have a claim with
respect to the funds in such account or a perfected first priority security
interest against any collateral (which shall be limited to Permitted
Investments) securing such funds that is superior to claims of any other
depositors or creditors of the depository institution or trust company in which
such account is maintained, or (iii) a trust account or accounts maintained with
(a) the trust department of a federal or state chartered depository institution
or (b) a trust company, acting in its fiduciary capacity or (iv) any other
account acceptable to each Rating Agency. Eligible Accounts may bear interest,
and may include, if otherwise qualified under this definition, accounts
maintained with the Trustee.
Eligible Substitute Mortgage Loan: A Mortgage Loan (a) substituted
by the Transferor for a Deleted Mortgage Loan which must, on the date of such
substitution, (i) have an unpaid principal balance, after deduction of the
principal portion of the Scheduled Payment due in the month of substitution (or,
in the case of a substitution of more than one mortgage loan for a Deleted
Mortgage Loan, an aggregate principal balance), not in excess of, and not more
than 10% less than the unpaid principal balance of the Deleted Mortgage Loan;
(ii) have a Maximum Mortgage Rate no more than 1% per annum higher or lower than
the Maximum Mortgage Rate of the Deleted Mortgage Loan; (iii) have a Minimum
Mortgage Rate no more than 1% per annum higher or lower than the Minimum
Mortgage Rate of the Deleted Mortgage Loan; (iv) have the same index and
Periodic Rate Cap as that of the Deleted Mortgage Loan and a Gross Margin not
more than 1% per annum higher or lower than that of the Deleted Mortgage Loan;
(v) does not permit conversion of the related interest rate to a fixed interest
rate; (vi) currently be accruing interest at a rate not more than 1% per annum
higher or lower than that of the Deleted Mortgage Loan; (vii) have a
Loan-to-Value Ratio no higher than that of the Deleted Mortgage Loan; (viii)
have a remaining term to maturity no greater than (and not more than one year
less than that of) the Deleted Mortgage Loan; (ix) comply with each
representation and warranty set forth herein; (x) be the same credit grade
category as the Deleted Mortgage Loan; and (xi) have the same prepayment penalty
term or (b) substituted by the Transferor for a Deleted Mortgage Loan pursuant
to the terms of the related Purchase and Servicing Agreement.
ERISA: The Employee Retirement Income Security Act of 1974, as
amended.
ERISA-Restricted Certificate: As specified in the Preliminary
Statement.
Escrow Account: The Eligible Account or Accounts established and
maintained pursuant to Section 3.08(a) hereof.
Excess Loss: With respect to the Non-Group 4 Mortgage Loans, the
amount of any (i) Fraud Loss realized after the Fraud Loss Coverage Termination
Date, (ii) Special Hazard Loss realized after the Special Hazard Coverage
Termination Date or (iii) Bankruptcy Loss realized after the Bankruptcy Coverage
Termination Date.
Excess Overcollateralized Amount: With respect to any Distribution
Date and the Group 4 Mortgage Loans, the excess, if any, of (a) the
Overcollateralized Amount on such Distribution Date over (b) the Specified
Overcollateralized Amount for such Distribution Date.
Excess Proceeds: With respect to any Liquidated Loan, the amount, if
any, by which the sum of any Liquidation Proceeds of such Mortgage Loan received
in the calendar month in which such Mortgage Loan became a Liquidated Loan,
exceeds (i) the Scheduled Principal Balance of such Liquidated Loan as of the
Due Date in the month in which such Mortgage Loan became a Liquidated Loan plus
(ii) accrued interest at the Mortgage Rate from the Due Date as to which
interest was last paid or advanced (and not reimbursed) to Certificateholders up
to the Due Date applicable to the Distribution Date immediately following the
calendar month during which such liquidation occurred.
Excess Reserve Fund Account: The separate Eligible Account created
and maintained by the Trustee pursuant to Section 3.07 in the name of the
Trustee for the benefit of the Group 4 Certificateholders and designated
"JPMorgan Chase Bank in trust for the registered holders of MASTR Adjustable
Rate Mortgages Trust 2003-1, Mortgage Pass-Through Certificates Series 2003-1."
Funds in the Excess Reserve Fund Account shall be held in trust for the Group 4
Certificateholders for the uses and purposes set forth in this Agreement.
Amounts on deposit in the Excess Reserve Fund Account shall not be invested.
Exchange Act: The Securities Exchange Act of 1934, as amended from
time to time.
Extra Principal Distribution Amount: As of any Distribution Date and
the Group 4 Mortgage Loans, the lesser of (x) the related Total Monthly Excess
Spread for such Distribution Date and (y) the related Overcollateralization
Deficiency for such Distribution Date.
Xxxxxx Xxx: Xxxxxx Xxx, a federally chartered and privately owned
corporation organized and existing under the Federal National Mortgage
Association Charter Act, or any successor thereto.
FDIC: The Federal Deposit Insurance Corporation, or any successor
thereto.
FIRREA: The Financial Institutions Reform, Recovery, and Enforcement
Act of 1989.
First Financial: First Financial Equities and its successors and
assigns, in its capacity as seller of the First Financial Mortgage Loans.
First Financial Loan Sale Date: The date that the GMAC purchased the
First Financial Mortgage Loans from First Financial as set forth on the Mortgage
Loan Schedule under the heading "Loan Sale Date."
First Financial Mortgage Loans: The Mortgage Loans for which
First Financial is listed as "Loan Seller" in the Mortgage Loan Schedule.
First Financial Purchase and Servicing Agreement: Solely with
respect to the First Financial Mortgage Loans, the Master Seller's Purchase,
Warranties and Interim Servicing Agreement, dated as of August 1, 2002, between
GMAC and First Financial, as the same may be amended from time to time, and
those certain assignment and conveyances and assignment and recognition
agreements, in each case related to the First Financial Mortgage Loans.
Formula Principal Amount: With respect to any Loan Group other than
Loan Group 4, the Group 1 Formula Principal Amount, the Group 2 Formula
Principal Amount or the Group 3 Formula Principal Amount, as the case may be.
Fractional Interest: With respect to any Distribution Date and each
Class of Non-Group 4 Junior Certificates, the fraction (expressed as a
percentage), the numerator of which is the Class Principal Balance of such Class
and each Class subordinate to such Class, if any, and the denominator of which
is the aggregate Scheduled Principal Balance of all Mortgage Loans in the
related Loan Group.
Fraud Loan: A Liquidated Loan as to which a Fraud Loss has occurred.
Fraud Loss Coverage Amount: As of the Closing Date, $3,267,022,
subject to reduction from time to time by the amount of Fraud Losses allocated
to the Non-Group 4 Certificates. In addition, on each anniversary of the Cut-off
Date, the Fraud Loss Coverage Amount will be reduced as follows: (a) on the
first and second anniversaries of the Cut-off Date, to an amount equal to the
lesser of (i) 2% of the then-current Non-Group 4 Pool Principal Balance and (ii)
the excess of the Fraud Loss Coverage Amount as of the preceding anniversary of
the Cut-off Date over the cumulative amount of Fraud Losses that would have been
allocated to the Non-Group 4 Certificates in the absence of the Loss Allocation
Limitation since such preceding anniversary, (b) on the third, fourth and fifth
anniversaries of the Cut-off Date, to an amount equal to the lesser of (i) 1% of
the then-current Non-Group 4 Pool Principal Balance and (ii) the excess of the
Fraud Loss Coverage Amount as of the preceding anniversary of the Cut-off Date
over the cumulative amount of Fraud Losses that would have been allocated to the
Non-Group 4 Certificates in the absence of the Loss Allocation Limitation since
such preceding anniversary and (c) on the earlier to occur of the Cross-Over
Date and the fifth anniversary of the Cut-off Date, to zero.
Fraud Loss Coverage Termination Date: The point in time at which the
Fraud Loss Coverage Amount is reduced to zero.
Fraud Losses: Realized Losses on Non-Group 4 Mortgage Loans as to
which a loss is sustained by reason of a default arising from fraud, dishonesty
or misrepresentation in connection with the related Non-Group 4 Mortgage Loan,
including a loss by reason of the denial of coverage under any related Primary
Insurance Policy because of such fraud, dishonesty or misrepresentation as
reported by the applicable Servicer to the Master Servicer.
Xxxxxxx Mac: Xxxxxxx Mac, a corporate instrumentality of the United
States created and existing under Title III of the Emergency Home Finance Act of
1970, as amended, or any successor thereto.
Genisys: Genisys Financial Corporation and its successors and
assigns, in its capacity as seller of the Genisys Mortgage Loans.
Genisys Loan Sale Date: The date that the Transferor purchased the
Genisys Mortgage Loans from Genisys as set forth on the Mortgage Loan Schedule
under the heading "Loan Sale Date."
Genisys Mortgage Loans: The Mortgage Loans for which Genisys is
listed as "Loan Seller" in the Mortgage Loan Schedule.
Genisys Purchase and Servicing Agreement: Solely with respect to the
Genisys Mortgage Loans, the Master Seller's Purchase, Warranties and Interim
Servicing Agreement, dated as of August 1, 2002, between the Transferor and
Genisys, as the same may be amended from time to time, and those certain
assignment and conveyances and assignment and recognition agreements, in each
case related to the Genisys Mortgage Loans.
GMAC: GMAC Mortgage Corporation and its successors and assigns, in
its capacity as servicer of the GMAC Mortgage Loans.
GMAC Assignment Agreement: The Assignment, Assumption and
Recognition Agreement, dated as of January 30, 2003, among GMAC, the Depositor
and the Transferor.
GMAC Mortgage Loans: The Mortgage Loans for which GMAC is listed as
"Servicer" in the Mortgage Loan Schedule.
GMAC Servicing Agreement: Solely with respect to the Xxxxxx Mortgage
Loans, the Servicing Agreement, dated as of September 1, 2001, between the
Transferor and GMAC, as the same may be amended from time to time, as it relates
to the GMAC Mortgage Loans.
Grantor Trust: That portion of the Trust exclusive of the Trust
REMICs which holds (a) the right of the Group 4 Offered Certificates to receive
Basis Risk Carry Forward Amounts and (b) the Excess Reserve Fund Account and the
beneficial interest of the Class 4-X Certificates with respect thereto, subject
to the obligation to pay Basis Risk Carry Forward Amounts.
Greenpoint: Greenpoint Mortgage Funding, Inc. and its successors and
assigns, in its capacity as seller of the Greenpoint Mortgage Loans.
Greenpoint Loan Sale Date: The date that the Transferor purchased
the Greenpoint Mortgage Loans from Greenpoint as set forth on the Mortgage Loan
Schedule under the heading "Loan Sale Date."
Greenpoint Mortgage Loans: The Mortgage Loans for which Greenpoint
is listed as "Loan Seller" in the Mortgage Loan Schedule.
Greenpoint Purchase and Servicing Agreement: Solely with respect to
the Greenpoint Mortgage Loans, the Master Seller's Purchase, Warranties and
Interim Servicing Agreement, dated as of December 1, 2002, between the
Transferor and Greenpoint, as the same may be amended from time to time, and
those certain assignment and conveyances and assignment and recognition
agreements, in each case related to the Greenpoint Mortgage Loans.
Gross Margin: The percentage set forth in the related Mortgage Note
for each Mortgage Loan which is to be added to the applicable index for use in
determining the Mortgage Rate on each Adjustment Date.
Group 1 Available Funds: As to any Distribution Date, the sum of (a)
the aggregate amount held in the Collection Account at the close of business on
the related Servicer Remittance Date and, without duplication, on deposit in the
Distribution Account at the close of business of the related Distribution
Account Deposit Date, attributable to the Group 1 Mortgage Loans net of the
Amount Held for Future Distribution related to the Group 1 Mortgage Loans and
net of amounts permitted to be withdrawn from the Collection Account pursuant to
clauses (i)-(x), inclusive, of Section 3.10(a) and amounts permitted to be
withdrawn from the Distribution Account pursuant to clauses (i)-(iv) inclusive
of Section 3.10(b) each as it relates to the Group 1 Mortgage Loans, (b) the
amount of Advances made for such Distribution Date related to the Group 1
Mortgage Loans and (c) in connection with Defective Mortgage Loans in Loan Group
1, as applicable, the aggregate of the Purchase Prices and Substitution
Adjustment Amounts on deposit on the related Distribution Account Deposit Date.
Group 1 Formula Principal Amount: As to any Distribution Date, the
sum of (a) the principal portion of each Scheduled Payment (without giving
effect, prior to the Bankruptcy Coverage Termination Date, to any reductions
thereof caused by any Debt Service Reductions or Deficient Valuations) due on
each Group 1 Mortgage Loan on the related Due Date, (b) the Scheduled Principal
Balance of each Group 1 Mortgage Loan that was repurchased by the Transferor
pursuant to this Agreement, or an Loan Seller pursuant to the applicable
Purchase and Servicing Agreement as of such Distribution Date, (c) the
Substitution Adjustment Amount in connection with any Deleted Mortgage Loan
related to Loan Group 1 received with respect to such Distribution Date, (d) any
Liquidation Proceeds allocable to recoveries of principal of any Group 1
Mortgage Loan, if it is not yet a Liquidated Loan, received during the calendar
month preceding the month of such Distribution Date, (e) to the extent any Group
1 Mortgage Loan became a Liquidated Loan during the calendar month preceding the
month of such Distribution Date, the amount of the Liquidation Proceeds
allocable to principal received during the calendar month preceding the month of
such Distribution Date with respect to such Group 1 Mortgage Loan and (f) the
sum of (i) all Principal Prepayments in full received on the Group 1 Mortgage
Loans during the related Prepayment Period and (ii) all partial Principal
Prepayments on the Group 1 Mortgage Loans received during the related Prepayment
Period.
Group 1 Mortgage Loans: Those Mortgage Loans identified on the
Mortgage Loan Schedule as Group 1 Mortgage Loans.
Group 1 Optimal Principal Amount: For any Distribution Date, the sum
of (i) the Senior Percentage of all amounts described in clauses (a) through (d)
of the definition of "Group 1 Formula Principal Amount" for such Distribution
Date, (ii) with respect to each Group 1 Mortgage Loan that became a Liquidated
Loan during the calendar month preceding the month of such Distribution Date,
the lesser of (A) the Senior Percentage of the Scheduled Principal Balance of
such Group 1 Mortgage Loan, and (B) either (x) the Senior Prepayment Percentage,
or (y) if an Excess Loss was sustained with respect to such Liquidated Loan
during such prior calendar month, the Senior Percentage of the amount of the
Liquidation Proceeds allocable to principal received with respect to such Group
1 Mortgage Loan, and (iii) the Senior Prepayment Percentage of the amounts
described in clause (f) of the definition of "Group 1 Formula Principal Amount"
for such Distribution Date; provided, however, that if a Bankruptcy Loss that is
an Excess Loss is sustained with respect to a Group 1 Mortgage Loan that is not
a Liquidated Loan, the Group 1 Optimal Principal Amount will be reduced on the
related Distribution Date by the Senior Percentage of the principal portion of
such Bankruptcy Loss.
Group 1 Pool Principal Balance: As to any Distribution Date, the
aggregate of the Scheduled Principal Balances of the Group 1 Mortgage Loans
which were Outstanding Mortgage Loans on the Due Date in the month preceding the
month of such Distribution Date.
Group 1 Subordinate Amount: As to any Distribution Date, the excess
of (i) the Group 1 Pool Principal Balance over (ii) the sum of the Class
Principal Balances of the Class 1-A-1 Certificates and the Residual
Certificates.
Group 2 Available Funds: As to any Distribution Date, the sum of (a)
the aggregate amount held in the Collection Account at the close of business on
the related Servicer Remittance Date and, without duplication, on deposit in the
Distribution Account at the close of business of the related Distribution
Account Deposit Date, attributable to the Group 2 Mortgage Loans net of the
Amount Held for Future Distribution related to the Group 2 Mortgage Loans and
net of amounts permitted to be withdrawn from the Collection Account pursuant to
clauses (i)-(x), inclusive, of Section 3.10(a) and amounts permitted to be
withdrawn from the Distribution Account pursuant to clauses (i)-(iv) inclusive
of Section 3.10(b) each as it relates to the Group 2 Mortgage Loans, (b) the
amount of Advances made for such Distribution Date related to the Group 2
Mortgage Loans and (c) in connection with Defective Mortgage Loans in Loan Group
2, as applicable, the aggregate of the Purchase Prices and Substitution
Adjustment Amounts on deposit on the related Distribution Account Deposit Date.
Group 2 Formula Principal Amount: As to any Distribution Date, the
sum of (a) the principal portion of each Scheduled Payment (without giving
effect, prior to the Bankruptcy Coverage Termination Date, to any reductions
thereof caused by any Debt Service Reductions or Deficient Valuations) due on
each Group 2 Mortgage Loan on the related Due Date, (b) the Scheduled Principal
Balance of each Group 2 Mortgage Loan that was repurchased by the Transferor
pursuant to this Agreement, or an Loan Seller pursuant to the applicable
Purchase and Servicing Agreement as of such Distribution Date, (c) the
Substitution Adjustment Amount in connection with any Deleted Mortgage Loan
related to Loan Group 2 received with respect to such Distribution Date, (d) any
Liquidation Proceeds allocable to recoveries of principal of any Group 2
Mortgage Loan, if it is not yet a Liquidated Loan, received during the calendar
month preceding the month of such Distribution Date, (e) to the extent any Group
2 Mortgage Loan became a Liquidated Loan during the calendar month preceding the
month of such Distribution Date, the amount of the Liquidation Proceeds
allocable to principal received during the calendar month preceding the month of
such Distribution Date with respect to such Group 2 Mortgage Loan and (f) the
sum of (i) all Principal Prepayments in full received on the Group 2 Mortgage
Loans during the related Prepayment Period and (ii) all partial Principal
Prepayments on the Group 2 Mortgage Loans received during the related Prepayment
Period.
Group 2 Mortgage Loans: Those Mortgage Loans identified on the
Mortgage Loan Schedule as Group 2 Mortgage Loans.
Group 2 Optimal Principal Amount: For any Distribution Date, the sum
of (i) the Senior Percentage of all amounts described in clauses (a) through (d)
of the definition of "Group 2 Formula Principal Amount" for such Distribution
Date, (ii) with respect to each Group 2 Mortgage Loan that became a Liquidated
Loan during the calendar month preceding the month of such Distribution Date,
the lesser of (A) the Senior Percentage of the Scheduled Principal Balance of
such Group 2 Mortgage Loan, and (B) either (x) the Senior Prepayment Percentage,
or (y) if an Excess Loss was sustained with respect to such Liquidated Loan
during such prior calendar month, the Senior Percentage of the amount of the
Liquidation Proceeds allocable to principal received with respect to such Group
2 Mortgage Loan, and (iii) the Senior Prepayment Percentage of the amounts
described in clause (f) of the definition of "Group 2 Formula Principal Amount"
for such Distribution Date; provided, however, that if a Bankruptcy Loss that is
an Excess Loss is sustained with respect to a Group 2 Mortgage Loan that is not
a Liquidated Loan, the Group 2 Optimal Principal Amount will be reduced on the
related Distribution Date by the Senior Percentage of the principal portion of
such Bankruptcy Loss.
Group 2 Pool Principal Balance: As to any Distribution Date, the
aggregate of the Scheduled Principal Balances of the Group 2 Mortgage Loans
which were Outstanding Mortgage Loans on the Due Date in the month preceding the
month of such Distribution Date.
Group 2 Subordinate Amount: As to any Distribution Date, the excess
of (i) the Group 2 Pool Principal Balance over (ii) the Class Principal Balance
of the Class 2-A-1, Class 2-A-2 and Class 2-A-3 Certificates.
Group 3 Available Funds: As to any Distribution Date, the sum of (a)
the aggregate amount held in the Collection Account at the close of business on
the related Servicer Remittance Date and, without duplication, on deposit in the
Distribution Account at the close of business of the related Distribution
Account Deposit Date, attributable to the Group 3 Mortgage Loans net of the
Amount Held for Future Distribution related to the Group 3 Mortgage Loans and
net of amounts permitted to be withdrawn from the Collection Account pursuant to
clauses (i)-(x), inclusive, of Section 3.10(a) and amounts permitted to be
withdrawn from the Distribution Account pursuant to clauses (i)-(iv) inclusive
of Section 3.10(b) each as it relates to the Group 3 Mortgage Loans, (b) the
amount of Advances made for such Distribution Date related to the Group 3
Mortgage Loans and (c) in connection with Defective Mortgage Loans in Loan Group
3, as applicable, the aggregate of the Purchase Prices and Substitution
Adjustment Amounts on deposit on the related Distribution Account Deposit Date.
Group 3 Formula Principal Amount: As to any Distribution Date, the
sum of (a) the principal portion of each Scheduled Payment (without giving
effect, prior to the Bankruptcy Coverage Termination Date, to any reductions
thereof caused by any Debt Service Reductions or Deficient Valuations) due on
each Group 3 Mortgage Loan on the related Due Date, (b) the Scheduled Principal
Balance of each Group 3 Mortgage Loan that was repurchased by the Transferor
pursuant to this Agreement, or an Loan Seller pursuant to the applicable
Purchase and Servicing Agreement as of such Distribution Date, (c) the
Substitution Adjustment Amount in connection with any Deleted Mortgage Loan
related to Loan Group 3 received with respect to such Distribution Date, (d) any
or Liquidation Proceeds allocable to recoveries of principal of any Group 3
Mortgage Loan, if it is not yet a Liquidated Loan, received during the calendar
month preceding the month of such Distribution Date, (e) to the extent any Group
3 Mortgage Loan became a Liquidated Loan during the calendar month preceding the
month of such Distribution Date, the amount of the Liquidation Proceeds
allocable to principal received during the calendar month preceding the month of
such Distribution Date with respect to such Group 3 Mortgage Loan and (f) the
sum of (i) all Principal Prepayments in full received on the Group 3 Mortgage
Loans during the related Prepayment Period and (ii) all partial Principal
Prepayments on the Group 3 Mortgage Loans received during the related Prepayment
Period.
Group 3 Mortgage Loans: Those Mortgage Loans identified on the
Mortgage Loan Schedule as Group 3 Mortgage Loans.
Group 3 Optimal Principal Amount: For any Distribution Date, the sum
of (i) the Senior Percentage of all amounts described in clauses (a) through (d)
of the definition of "Group 3 Formula Principal Amount" for such Distribution
Date, (ii) with respect to each Group 3 Mortgage Loan that became a Liquidated
Loan during the calendar month preceding the month of such Distribution Date,
the lesser of (A) the Senior Percentage of the Scheduled Principal Balance of
such Group 3 Mortgage Loan, and (B) either (x) the Senior Prepayment Percentage,
or (y) if an Excess Loss was sustained with respect to such Liquidated Loan
during such prior calendar month, the Senior Percentage of the amount of the
Liquidation Proceeds allocable to principal received with respect to such Group
3 Mortgage Loan, and (iii) the Senior Prepayment Percentage of the amounts
described in clause (f) of the definition of "Group 3 Formula Principal Amount"
for such Distribution Date; provided, however, that if a Bankruptcy Loss that is
an Excess Loss is sustained with respect to a Group 3 Mortgage Loan that is not
a Liquidated Loan, the Group 3 Optimal Principal Amount will be reduced on the
related Distribution Date by the Senior Percentage of the principal portion of
such Bankruptcy Loss.
Group 3 Pool Principal Balance: As to any Distribution Date, the
aggregate of the Scheduled Principal Balances of the Group 3 Mortgage Loans
which were Outstanding Mortgage Loans on the Due Date in the month preceding the
month of such Distribution Date.
Group 3 Subordinate Amount: As to any Distribution Date, the excess
of (i) the Group 3 Pool Principal Balance over (ii) the Class Principal Balance
of the Class 3-A-1 Certificates.
Group 4: Either the Group 4 Certificates or the Group 4 Mortgage
Loans, as applicable.
Group 4 Available Funds: As to any Distribution Date, the sum of (a)
the aggregate amount held in the Collection Account at the close of business on
the related Servicer Remittance Date and, without duplication, on deposit in the
Distribution Account at the close of business of the related Distribution
Account Deposit Date, attributable to the Group 4 Mortgage Loans net of the
Amount Held for Future Distribution related to the Group 4 Mortgage Loans and
net of amounts permitted to be withdrawn from the Collection Account pursuant to
clauses (i)-(x), inclusive, of Section 3.10(a) and amounts permitted to be
withdrawn from the Distribution Account pursuant to clauses (i)-(iv) inclusive
of Section 3.10(b) each as it relates to the Group 4 Mortgage Loans, (b) the
amount of Advances made for such Distribution Date related to the Group 4
Mortgage Loans and (c) in connection with Defective Mortgage Loans in Loan Group
4, as applicable, the aggregate of the Purchase Prices and Substitution
Adjustment Amounts on deposit on the related Distribution Account Deposit Date.
Group 4 Mortgage Loans: Those Mortgage Loans identified on the
Mortgage Loan Schedule as Group 4 Mortgage Loans.
Group 4 Pool Principal Balance: As to any Distribution Date, the
aggregate of the Scheduled Principal Balances of the Group 4 Mortgage Loans
which were Outstanding Mortgage Loans on the Due Date in the month preceding the
month of such Distribution Date.
Group Subordinate Amount: With respect to any Distribution Date and
any Loan Group (other than Group 4), the Group 1 Subordinate Amount, the Group 2
Subordinate Amount and the Group 3 Subordinate Amount, as the case may be.
Home Star: Home Star Mortgage Services, LLC and its successors and
assigns, in its capacity as seller of the Home Star Mortgage Loans.
Home Star Assignment Agreement: The Assignment, Assumption and
Recognition Agreement, dated as of January 30, 2003, among Home Star, the
Depositor and the Transferor.
Home Star Loan Sale Date: The date that the Transferor purchased the
Home Star Mortgage Loans from Home Star as set forth on the Mortgage Loan
Schedule under the heading "Loan Sale Date."
Home Star Mortgage Loans: The Mortgage Loans for which Home Star is
listed as "Loan Seller" in the Mortgage Loan Schedule.
Home Star Purchase and Servicing Agreement: Solely with respect to
the Home Star Mortgage Loans, the Master Loan Purchase and Servicing Agreement,
dated as of September 1, 2002, between the Transferor and Home Star, as the same
may be amended from time to time, and those certain assignment and conveyances
and assignment and recognition agreements, in each case related to the Home Star
Mortgage Loans.
HUD: The United States Department of Housing and Urban Development
or any successor thereto.
Indirect Participant: A broker, dealer, bank or other financial
institution or other Person that clears through or maintains a custodial
relationship with a Depository Participant.
Initial Bankruptcy Coverage Amount: $150,000.
Initial LIBOR Rate: 1.37%.
Insolvency Proceeding: With respect to any Person: (i) any case,
action, or proceeding with respect to such Person before any court or other
governmental authority relating to bankruptcy, reorganization, insolvency,
liquidation, receivership, dissolution, winding-up, or relief of debtors; or
(ii) any general assignment for the benefit of creditors, composition,
marshaling of assets for creditors, or other, similar arrangement in respect of
the creditors generally of such Person or any substantial portion of such
Person's creditors, in any case undertaken under federal, state or foreign law,
including the Bankruptcy Code.
Insurance Policy: With respect to any Mortgage Loan included in the
Trust Fund, any insurance policy, including all riders and endorsements thereto
in effect, including any replacement policy or policies for any Insurance
Policies.
Insurance Proceeds: Proceeds paid by an insurer pursuant to any
Insurance Policy, in each case other than any amount included in such Insurance
Proceeds in respect of Insured Expenses, to the extent such proceeds are not
applied to the restoration of the related Mortgaged Property or released to the
borrower in accordance with the applicable Servicer's normal servicing
procedures.
Insured Expenses: Expenses covered by an Insurance Policy or any
other insurance policy with respect to the Mortgage Loans.
Interest Accrual Period: With respect to each Class of Non-Group 4
Certificates, Lower-Tier REMIC A Regular Interests and Middle-Tier REMIC Regular
Interests and any Distribution Date, the calendar month prior to the month of
such Distribution Date and with respect to each Class of Group 4 Certificates,
Upper-Tier Regular Interest and Lower-Tier REMIC B Regular Interests and any
Distribution Date, the period from and including the 25th day of the month
preceding the month in which the Distribution Date occurs to an including the
24th day of the month in which that Distribution Date occurs.
JLM: JLM Direct Funding Ltd. and its successors and assigns, in its
capacity as seller of the JLM Mortgage Loans.
JLM Loan Sale Date: The date that the GMAC purchased the JLM
Mortgage Loans from JLM as set forth on the Mortgage Loan Schedule under the
heading "Loan Sale Date."
JLM Mortgage Loans: The Mortgage Loans for which JLM is listed as
"Loan Seller" in the Mortgage Loan Schedule.
JLM Purchase and Servicing Agreement: Solely with respect to the JLM
Mortgage Loans, the Master Seller's Purchase, Warranties and Interim Servicing
Agreement, dated as of August 1, 2002, between GMAC and JLM, as the same may be
amended from time to time, and those certain assignment and conveyances and
assignment and recognition agreements, in each case related to the JLM Mortgage
Loans.
Junior Optimal Principal Amount: For any Distribution Date and any
Non-Group 4 Loan Group, the sum for each Mortgage Loan in such Loan Group of (i)
the Junior Percentage for such Loan Group of all amounts described in clauses
(a) through (d) of the applicable defined term used in the definition of
"Formula Principal Amount" for such Distribution Date, (ii) with respect to each
such Mortgage Loan that became a Liquidated Loan during the calendar month
preceding the month of such Distribution Date, the lesser of (A) the Junior
Percentage for such Loan Group of the Scheduled Principal Balance of such
Mortgage Loan, or (B) either (a) the Junior Prepayment Percentage for such Loan
Group, or (b) if an Excess Loss was sustained with respect to such Liquidated
Loan during such prior calendar month, the Junior Percentage for such Loan Group
of the amount of the Liquidation Proceeds allocable to principal received with
respect to such Mortgage Loan, and (iii) the Junior Prepayment Percentage for
such Loan Group of the amounts described in clause (f) of the applicable defined
term used in the definition of "Formula Principal Amount" for such Distribution
Date; provided, however, that if a Bankruptcy Loss that is an Excess Loss is
sustained with respect to a Mortgage Loan that is not a Liquidated Loan, the
Junior Optimal Principal Amount will be reduced on the related Distribution Date
by the Junior Percentage for such Loan Group of the principal portion of such
Bankruptcy Loss.
Junior Percentage: As to any Distribution Date and any Non-Group 4
Loan Group, 100% minus the Senior Percentage for such Loan Group for such
Distribution Date.
Junior Prepayment Percentage: As to any Distribution Date and any
Loan Group, 100% minus the Senior Prepayment Percentage for such Loan Group for
such Distribution Date.
Junior Principal Distribution Amount: The aggregate amount which
would be payable as principal on the Non-Group 4 Junior Certificates from Group
Available Funds for all Loan Groups after application of Group Available Funds
for each Loan Group to make payments on Non-Group 4 Senior Certificates of the
related Certificate Group in accordance with Section 4.02(a)(i) and to pay
Accrued Certificate Interest for other Certificate Groups, upon application of
such remaining Group Available Funds to the Non-Group 4 Junior Certificates in
accordance with Section 4.02(a)(ii).
Latest Possible Maturity Date: With respect to any Group of
Certificates, the Lower-Tier REMIC A Regular Interests, the Lower-Tier REMIC B
Regular Interests, and the Middle-Tier REMIC Regular Interests (other than the
Non-Group 4 Junior Certificates and the Corresponding Middle-Tier REMIC Regular
Interests), the Distribution Date following the third anniversary of the
scheduled maturity date of the Mortgage Loan in the related Loan Group having
the latest scheduled maturity date as of the Cut-off Date. With respect to the
Non-Group 4 Junior Certificates and the Corresponding Middle-Tier REMIC Regular
Interests, the Distribution Date following the third anniversary of the
scheduled maturity date of the Non-Group 4 Mortgage Loan having the latest
scheduled maturity date as of the Cut-off Date.
Lender-Paid Mortgage Insurance Amount: With respect to any
Lender-Paid Mortgage Insurance Loan, the interest portion of each Scheduled
Payment that is paid by the related Mortgagor that will be used to pay the
monthly premium of the "lender-paid" Primary Insurance Policy on such
Lender-Paid Mortgage Insurance Loan, which is calculated by multiplying the
Scheduled Principal Balance as of the related date of determination on such
Lender-Paid Mortgage Insurance Loan by the applicable Lender-Paid Mortgage
Insurance Rate.
Lender-Paid Mortgage Insurance Loan: Each of the 20 Mortgage Loans
identified on the Mortgage Loan Schedule as having a Lender-Paid Mortgage
Insurance Rate.
Lender-Paid Mortgage Insurance Rate: With respect to any Lender-Paid
Mortgage Insurance Loan, a per annum rate equal to the percentage indicated on
the Mortgage Loan Schedule under the heading "Lender-Paid Mortgage Insurance
Rate."
LIBOR: As to any Distribution Date, the arithmetic mean of the
London Interbank offered rate quotations for one-month U.S. Dollar deposits, as
determined by the Master Servicer in accordance with Section 4.07.
LIBOR Certificates: As specified in the Preliminary Statement.
LIBOR Determination Date: As to any Distribution Date and any Class
of LIBOR Certificates, the second London Business Day prior to the beginning of
the applicable Interest Accrual Period for such Class and such Distribution
Date.
Liquidated Loan: With respect to any Distribution Date, a defaulted
Mortgage Loan (including any REO Property) which was liquidated in the calendar
month preceding the month of such Distribution Date and as to which the
applicable Servicer or the Master Servicer, as the case may be, has determined
(in accordance with the applicable Purchase and Servicing Agreement and this
Agreement) that it has received all amounts it expects to receive in connection
with the liquidation of such Mortgage Loan, including the final disposition of
an REO Property.
Liquidation Proceeds: Amounts, including Insurance Proceeds,
received in connection with the partial or complete liquidation of defaulted
Mortgage Loans, whether through trustee's sale, foreclosure sale or otherwise or
amounts received in connection with any condemnation or partial release of a
Mortgaged Property and any other proceeds received in connection with an REO
Property, less the sum of related unreimbursed Servicing Fees, Servicing
Advances and Advances.
Loan Group: Each of Loan Group 1, Loan Group 2, Loan Group 3 and
Loan Group 4.
Loan Group 1: The Group 1 Mortgage Loans.
Loan Group 2: The Group 2 Mortgage Loans.
Loan Group 3: The Group 3 Mortgage Loans.
Loan Group 4: The Group 4 Mortgage Loans.
Loan Group Principal Balance: With respect to any Loan Group, the
Group 1 Pool Principal Balance, the Group 2 Pool Principal Balance, Group 3 Pool
Principal Balance or the Group 4 Pool Balance, as the case may be.
Loan Sale Date: The respective dates on which the Transferor
purchased the Mortgage Loans from the Loan Sellers pursuant to the Purchase and
Servicing Agreements.
Loan Seller: Each of American Mortgage Express, Bank One, Concord,
Countrywide, Xxxxxx, First Financial, Genisys, GMAC, Greenpoint, Homestar, JLM,
Mortgage Network, Provident, SIB, Mortgage Store, United Capital and US
Mortgage, as applicable.
Loan-to-Value Ratio: With respect to any Mortgage Loan and as to any
date of determination, the fraction (expressed as a percentage) the numerator of
which is the principal balance of the related Mortgage Loan at such date of
determination and the denominator of which is the Appraised Value of the related
Mortgaged Property.
London Business Day: Any Business Day on which banks are open for
dealing in foreign currency and exchange in London, England and the City of New
York.
Loss Allocation Limitation: As defined in Section 4.03(d) hereof.
Lost Mortgage Note: Any Mortgage Note the original of which was
permanently lost or destroyed and has not been replaced.
Lower-Tier REMIC A: As described in the Preliminary Statement.
Lower-Tier REMIC B: As described in the Preliminary Statement.
Lower-Tier REMIC B Accretion Directed Classes: The Class 4-A1-LB,
Class 4-M1-LB, Class 4-M2-LB, Class 4-B-LB Interests.
Lower-Tier REMIC A Interest: Any one of the Lower-Tier REMIC A
Regular Interests or the Class A-LRA Interest.
Lower-Tier REMIC A Regular Interest: Any of the Class L-1B Interest,
Class L-1Q Interest, Class L-2B Interest, Class L-2Q Interest, Class L-3B
Interest and Class L-3Q Interest.
Lower-Tier REMIC B Regular Interest: Any of the Class 4-A1-LB
Interest, Class 4-M1-LB Interest, Class 4-M2-LB Interest, Class 4-B-LB Interest
and Class 4-Accrual-LB Interest.
Lower-Tier Subordinated Balance Ratio: The ratio among the principal
balances of the Class L-1B Interest, Class L-2B Interest and Class L-3B
Interest, equal to the ratio among:
(a) the Group 1 Subordinate Amount;
(b) the Group 2 Subordinate Amount; and
(c) the Group 3 Subordinate Amount.
Majority in Interest: As to any Class of Regular Certificates, the
Holders of Certificates of such Class evidencing, in the aggregate, at least 51%
of the Percentage Interests evidenced by all Certificates of such Class.
Master Servicer: Xxxxx Fargo Bank Minnesota, N.A., a national
banking association, and its successors and assigns, in its capacity as Master
Servicer hereunder.
Master Servicer Event of Termination: As defined in Section 7.01
hereof.
Master Servicing Compensation: All investment earnings on amounts on
deposit in the Collection Account and the Distribution Account.
Master Servicing Officer: Any officer of the Master Servicer
involved in, or responsible for, the administration and master servicing of the
Mortgage Loans.
Maximum Mortgage Rate: With respect to each Mortgage Loan, the
maximum rate of interest set forth as such in the related Mortgage Note.
MERS: As defined in Section 2.01.
Middle-Tier REMIC: As described in the Preliminary Statement.
Middle-Tier REMIC Interest: Any one of the Middle-Tier REMIC Regular
Interests or Class MR Interest.
Middle-Tier REMIC Regular Interest: Any of the Class 1-A-M1
Interest, Class 2-A-M1 Interest, Class 3-A-M1 Interest, Class B-M1 Interest,
Class B-M2 Interest, Class B-M3 Interest, Class B-M4 Interest, Class B-M5
Interest and Class B-M6 Interest.
Minimum Mortgage Rate: With respect to each Mortgage Loan, the
minimum rate of interest set forth as such in the related Mortgage Note.
Monthly Statement: The statement delivered to the Certificateholders
pursuant to Section 4.06.
Moody's: Xxxxx'x Investors Service, Inc., or any successor thereto.
If Xxxxx'x is designated as a Rating Agency in the Preliminary Statement, for
purposes of Section 10.05(b) the address for notices to Moody's shall be Xxxxx'x
Investors Service, Inc., 00 Xxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention:
Residential Mortgage Monitoring Group, or such other address as Moody's may
hereafter furnish to the Trustee, Depositor and the Master Servicer.
Mortgage: The mortgage, deed of trust or other instrument creating a
first lien on an estate in fee simple or leasehold interest in real property
securing a Mortgage Note.
Mortgage File: The mortgage documents listed in Section 2.01 hereof
pertaining to a particular Mortgage Loan and any additional documents delivered
to the Master Servicer to be added to the Mortgage File pursuant to this
Agreement.
Mortgage Loan Purchase Agreement: The Mortgage Loan Purchase
Agreement, dated as of January 1, 2003, between the Transferor and the
Depositor.
Mortgage Loan Schedule: The list of Mortgage Loans (as from time to
time amended by the Master Servicer to reflect the addition of Eligible
Substitute Mortgage Loans and the deletion of Deleted Mortgage Loans pursuant to
the provisions of this Agreement) transferred to the Trustee as part of the
Trust Fund and from time to time subject to this Agreement, attached hereto as
Schedule I, setting forth the following information with respect to each
Mortgage Loan: (1) the Mortgage Loan identifying number; (2) the Mortgagor's
first and last name; (3) the street address of the Mortgaged Property including
the city, state and zip code; (4) the original principal balance of the Mortgage
Loan; (5) the Scheduled Principal Balance of the Mortgage Loan as of the close
of business on the Cut-off Date; (6) the unpaid principal balance of the
Mortgage Loan as of the close of business on the Cut-off Date; (7) the last
scheduled Due Date on which a Scheduled Payment was applied to the Scheduled
Principal Balance; (8) the last Due Date on which a Scheduled Payment was
actually applied to the unpaid principal balance; (9) the Mortgage Rate in
effect immediately following origination; (10) the Mortgage Rate in effect
immediately following the Cut-off Date (if different from (9)); (11) the amount
of the Scheduled Payment at origination; (12) the amount of the Scheduled
Payment as of the Cut-off Date (if different from (11)); (13) a code indicating
whether the Mortgaged Property is owner-occupied, a second home or an investor
property; (14) a code indicating whether the Mortgaged Property is a single
family residence, a two-family residence, a three-family residence, a
four-family residence, a planned-unit development, or a condominium; (15) a code
indicating the loan purpose (i.e., purchase, rate/term refinance, cash-out
refinance); (16) the stated maturity date; (17) the original months to maturity;
(18) the remaining months to maturity from the Cut-off Date based on the
original amortization schedule and, if different, the remaining months to
maturity expressed in the same manner but based on the actual amortization
schedule; (19) the origination date of the Mortgage Loan; (20) the date on which
the first Scheduled Payment was due on the Mortgage Loan after the origination
date; (21) a code indicating the documentation style of the Mortgage Loan; (22)
a code indicating if the Mortgage Loan is subject to a Primary Insurance Policy
and, if so, the name of the Qualified Mortgage Insurer, the certificate number
and the coverage amount of the Primary Insurance Policy; (23) a code indicating
if the Mortgage Loan is subject to a "lender-paid" Primary Insurance Policy and,
if so, the name of the Qualified Mortgage Insurer, the certificate number and
the coverage amount of the Primary Insurance Policy, and the Lender-Paid
Mortgage Insurance Rate; (24) the Servicing Fee Rate; (25) a code indicating
whether the Mortgage Loan is subject to a prepayment penalty and, if so, the
term of such prepayment penalty; (26) the credit score (or mortgage score) of
the Mortgagor; (27) the debt-to-income ratio of the Mortgage Loan; (28) a code
indicating the Loan Seller of the Mortgage Loan; (29) the next Mortgage Rate
Adjustment Date; (30) the lifetime Mortgage Rate Cap; (31) the Periodic Rate
Cap; (32) the Maximum Interest Rate; (33) the Minimum Interest Rate; and (34)
such Loan Sale Date.
Mortgage Loans: Such of the mortgage loans transferred and assigned
to the Trustee pursuant to the provisions hereof as from time to time are held
as a part of the Trust Fund (including any REO Property), the mortgage loans so
held being identified in the Mortgage Loan Schedule, notwithstanding foreclosure
or other acquisition of title of the related Mortgaged Property.
Mortgage Network: Mortgage Network, Inc., and its successors and
assigns, in its capacity as seller of the Mortgage Network Mortgage Loans.
Mortgage Network Loan Sale Date: The date that the Transferor
purchased the Mortgage Network Mortgage Loans from Mortgage Network as set forth
on the Mortgage Loan Schedule under the heading "Loan Sale Date."
Mortgage Network Mortgage Loans: The Mortgage Loans for which
Mortgage Network is listed as "Loan Seller" in the Mortgage Loan Schedule.
Mortgage Network Purchase and Servicing Agreement: Solely with
respect to the Mortgage Network Mortgage Loans, the Master Seller's Purchase,
Warranties and Interim Servicing Agreement, dated as of November 1, 2002,
between the Transferor and Mortgage Network, as the same may be amended from
time to time, and those certain assignment and conveyances and assignment and
recognition agreements, in each case related to the Mortgage Network Mortgage
Loans.
Mortgage Note: The original executed note or other evidence of the
indebtedness of a Mortgagor under a Mortgage Loan.
Mortgage Rate: The annual rate of interest borne by a Mortgage Note
from time to time.
Mortgage Store: The Mortgage Store and its successors and assigns,
in its capacity as seller of the Mortgage Store Mortgage Loans.
Mortgage Store Loan Sale Date: The date that the GMAC purchased the
Mortgage Store Mortgage Loans from Mortgage Store as set forth on the Mortgage
Loan Schedule under the heading "Loan Sale Date."
Mortgage Store Mortgage Loans: The Mortgage Loans for which Mortgage
Store is listed as "Loan Seller" in the Mortgage Loan Schedule.
Mortgage Store Purchase and Servicing Agreement: Solely with respect
to the Mortgage Store Mortgage Loans, the Master Seller's Purchase, Warranties
and Interim Servicing Agreement, dated as of June 1, 2002, between GMAC and
Mortgage Store, as the same may be amended from time to time, and those certain
assignment and conveyances and assignment and recognition agreements, in each
case related to the Mortgage Store Mortgage Loans.
Mortgaged Property: The underlying property securing a Mortgage
Loan.
Mortgagor: The obligor(s) on a Mortgage Note.
Net Mortgage Rate: As to each Mortgage Loan, and at any time, the
per annum rate equal to the Mortgage Rate less (i) the related Servicing Fee
Rate, and (ii) with respect to each Lender-Paid Mortgage Insurance Loan, the
Lender-Paid Mortgage Insurance Rate.
Net Prepayment Interest Shortfalls: As to any Distribution Date, the
amount by which the aggregate of Prepayment Interest Shortfalls during the
related Prepayment Period exceeds the amount of Compensating Interest for such
Distribution Date.
Net WAC Rate: With respect to the Group 4 Certificates, the
Corresponding Upper-Tier REMIC Regular Interests and the Lower-Tier REMIC B
Regular Interests, for each Distribution Date, the weighted average of the Net
Mortgage Rates of the Group 4 Mortgage Loans then in effect on the first day of
the related Due Period multiplied by a fraction equal to 30 divided by the
number of days in the related Accrual Period.
Non-Group 4 Available Funds: With respect to any Group, the Group 1
Available Funds, the Group 2 Available Funds or the Group 3 Available Funds, as
the case may be.
Non-Group 4 Junior Certificates: As specified in the Preliminary
Statement.
Non-Group 4 Pool Principal Balance: The sum of the Group 1 Pool
Principal Balance, the Group 2 Pool Principal Balance and the Group 3 Pool
Principal Balance.
Non-Group 4 Senior Certificates: As specified in the Preliminary
Statement.
Nonrecoverable Advance: Any portion of an Advance previously made or
proposed to be made by the applicable Servicer or the Master Servicer, as the
case may be, that, in the good faith judgment of the applicable Servicer or the
Master Servicer, will not be ultimately recoverable by the applicable Servicer
or the Master Servicer from the related Mortgagor, related Liquidation Proceeds
or otherwise.
Notice of Final Distribution: The notice to be provided pursuant to
Section 9.02 to the effect that final distribution on any of the Certificates
shall be made only upon presentation and surrender thereof.
Notional Amount: (i) With respect to any Distribution Date and the
Class 1-A-IO Certificates, the Class Principal Balance of the Class 1-A-1
Certificates as of such Distribution Date (prior to giving effect to any
distributions of principal made to the Class 1-A-1 Certificates on such
Distribution Date), (ii) with respect to any Distribution Date and the Class
2-A-IO Certificates, the aggregate of the Class Principal Balances of the Class
2-A-1, Class 2-A-2 and Class 2-A-3 Certificates as of such Distribution Date
(prior to giving effect to any distributions of principal made to the Class
2-A-1, Class 2-A-2 and Class 2-A-3 Certificates on such Distribution Date) and
(iii) with respect to any Distribution Date and the Class 3-A-IO Certificates,
the Class Principal Balance of the Class 3-A-1 Certificates as of such
Distribution Date (prior to giving effect to any distributions of principal made
to the Class 3-A-1 Certificates on such Distribution Date).
Offered Certificates: As specified in the Preliminary Statement.
Officer's Certificate: A certificate (i) signed by the Chairman of
the Board, the Vice Chairman of the Board, the President, a Managing Director, a
Vice President (however denominated), an Assistant Vice President, the
Treasurer, the Secretary, or one of the Assistant Treasurers or Assistant
Secretaries of the Depositor or the Master Servicer, or (ii), if provided for in
this Agreement, signed by a Master Servicing Officer, as the case may be, and
delivered to the Depositor and the Trustee, as the case may be, as required by
this Agreement.
Opinion of Counsel: A written opinion of counsel, who may be counsel
for the Depositor, the Master Servicer, an Loan Seller or any other Party to
this Agreement, including, in-house counsel, reasonably acceptable to the
Trustee; provided, however, that with respect to the interpretation or
application of the REMIC Provisions, such counsel must (i) in fact be
independent of the Depositor and the Master Servicer, (ii) not have any direct
financial interest in the Depositor or the Master Servicer or in any affiliate
of either, and (iii) not be connected with the Depositor or the Master Servicer
as an officer, employee, promoter, underwriter, trustee, partner, director or
person performing similar functions.
Optional Termination: The termination of the trust created hereunder
in connection with the purchase of the Mortgage Loans pursuant to Section
9.01(a) hereof.
Original Junior Principal Balance: The aggregate of the Class
Principal Balances of the Non-Group 4 Junior Certificates as of the Closing
Date.
OTS: The Office of Thrift Supervision.
Outstanding: With respect to the Certificates as of any date of
determination, all Certificates theretofore executed and authenticated under
this Agreement except:
(i) Certificates theretofore canceled by the Trustee or delivered to
the Trustee for cancellation; and
(ii) Certificates in exchange for which or in lieu of which other
Certificates have been executed and delivered by the Trustee pursuant to
this Agreement.
Outstanding Mortgage Loan: As of any Due Date, a Mortgage Loan with
a Scheduled Principal Balance greater than zero-which was not the subject of a
Principal Prepayment in Full prior to such Due Date and which did not become a
Liquidated Loan prior to such Due Date.
Overcollateralization Deficiency: With respect to any Distribution
Date and the Group 4 Certificates, the excess, if any, of (a) the Specified
Overcollateralized Amount applicable to such Distribution Date over (b) the
Overcollateralized Amount applicable to such Distribution Date.
Overcollateralization Reduction Amount: With respect to any
Distribution Date and the Group 4 Certificates, an amount equal to the lesser of
(a) the Excess Overcollateralized Amount and (b) the Total Monthly Excess
Spread.
Overcollateralized Amount: As of any Distribution Date and the Group
4 Certificates, the excess, if any, of (a) the aggregate Scheduled Principal
Balance of the Group 4 Mortgage Loans for such Distribution Date over (b) the
aggregate of the Class Certificate Balances of the Offered Group 4 Certificates
as of such Distribution Date (after giving effect to the payment of the
Principal Remittance Amount on such Certificates on such Distribution Date).
Ownership Interest: As to any Residual Certificate, any ownership
interest in such Certificate including any interest in such Certificate as the
Holder thereof and any other interest therein, whether direct or indirect, legal
or beneficial.
Pass-Through Rate: For any interest bearing Class of Certificates,
the per annum rate set forth or calculated in the manner described in the
Preliminary Statement.
Percentage Interest: As to any Certificate, the percentage interest
evidenced thereby in distributions required to be made on the related Class,
such percentage interest being set forth on the face thereof or equal to the
percentage obtained by dividing the Denomination of such Certificate by the
aggregate of the Denominations of all Certificates of the same Class.
Periodic Rate Cap: As to each Mortgage Loan and the related Mortgage
Note, the provisions therein that limit permissible increases and decreases in
the interest rate of any Mortgage Loan on any Adjustment Date.
Permitted Investments: At any time, any one or more of the following
obligations and securities:
(i) obligations of the United States or any agency thereof, provided
such obligations are backed by the full faith and credit of the United
States;
(ii) general obligations of or obligations guaranteed by any state
of the United States or the District of Columbia receiving the highest
long-term debt rating of each Rating Agency, or such lower rating as will
not result in the downgrading or withdrawal of the ratings then assigned
to the Certificates by either Rating Agency;
(iii) commercial or finance company paper which is then receiving
the highest commercial or finance company paper rating of each Rating
Agency, or such lower rating as will not result in the downgrading or
withdrawal of the ratings then assigned to the Certificates by either
Rating Agency;
(iv) certificates of deposit, demand or time deposits, or bankers'
acceptances issued by any depository institution or trust company
incorporated under the laws of the United States or of any state thereof
and subject to supervision and examination by federal and/or state banking
authorities, provided that the commercial paper and/or long term unsecured
debt obligations of such depository institution or trust company (or in
the case of the principal depository institution in a holding company
system, the commercial paper or long-term unsecured debt obligations of
such holding company) are then rated in the highest long-term and the
highest short-term ratings of each Rating Agency for such securities, or
such lower ratings as will not result in the downgrading or withdrawal of
the rating then assigned to the Certificates by either Rating Agency;
(v) demand or time deposits or certificates of deposit issued by any
bank or trust company or savings institution to the extent that such
deposits are fully insured by the FDIC and are then rated in the highest
long-term and the highest short-term ratings of each Rating Agency for
such securities, or such lower ratings as will not result in the
downgrading or withdrawal of the ratings then assigned to the Certificates
by either Rating Agency;
(vi) guaranteed reinvestment agreements issued by any bank,
insurance company or other corporation containing, at the time of the
issuance of such agreements, such terms and conditions as will not result
in the downgrading or withdrawal of the rating then assigned to the
Certificates by either Rating Agency;
(vii) repurchase obligations with respect to any security described
in clauses (i) and (ii) above, in either case entered into with a
depository institution or trust company (acting as principal) described in
clause (iv) above;
(viii) securities (other than stripped bonds, stripped coupons or
instruments sold at a purchase price in excess of 115% of the face amount
thereof) bearing interest or sold at a discount issued by any corporation
incorporated under the laws of the United States or any state thereof with
short-term ratings of A-1 by S&P and P-1 by Moody's;
(ix) units of a taxable money-market portfolio having the highest
rating assigned by each Rating Agency and restricted to obligations issued
or guaranteed by the United States of America or entities whose
obligations are backed by the full faith and credit of the United States
of America and repurchase agreements collateralized by such obligations;
(x) any mutual fund, money market fund, common trust fund or other
pooled investment vehicle, the assets of which are limited to instruments
that otherwise would constitute Permitted Investments hereunder, including
any such fund that is managed by the Trustee or Master Servicer or any
affiliate of the Trustee or Master Servicer or for which the Trustee or
Master Servicer or any affiliate of the Trustee or Master Servicer acts as
an adviser as long as such fund is rated in at least the highest rating
category by each Rating Agency (if so rated by such Rating Agency); and
(xi) such other investments bearing interest or sold at a discount
acceptable to each Rating Agency as will not result in the downgrading or
withdrawal of the rating then assigned to the Certificates by either
Rating Agency, as evidenced by a signed writing delivered by each Rating
Agency;
provided that no such instrument shall be a Permitted Investment if such
instrument evidences the right to receive interest only payments with respect to
the obligations underlying such instrument.
Permitted Transferee: Any Person other than (i) the United States,
any State or political subdivision thereof, or any agency or instrumentality of
any of the foregoing, (ii) a foreign government, international organization or
any agency or instrumentality of either of the foregoing, (iii) an organization
(except certain farmers' cooperatives described in section 521 of the Code)
which is exempt from tax imposed by Chapter 1 of the Code (including the tax
imposed by section 511 of the Code on unrelated business taxable income) on any
excess inclusions (as defined in section 860E(c)(l) of the Code) with respect to
any Residual Certificate, (iv) rural electric and telephone cooperatives
described in section 1381(a)(2)(C) of the Code, (v) a Person that is not a
citizen or resident of the United States, a corporation, partnership (except as
provided in applicable Treasury Regulations), or other entity created or
organized in or under the laws of the United States, any state thereof or the
District of Columbia, an estate whose income is subject to United States federal
income tax purposes regardless of its source or a trust if a court within the
United States is able to exercise primary supervision over the administration of
the trust and one or more Persons described in this clause (v) have the
authority to control all substantial decisions of the Trust (or, to the extent
provided in applicable Treasury Regulations, certain trusts in existence on
August 20, 1996 which are eligible to elect to be treated as United States
persons) unless such Person has furnished the transferor and the Trustee with a
duly completed Internal Revenue Service Form W-8ECI or any applicable successor
form, (vi) any Person with respect to whom income on any Residual Certificate is
attributable to a foreign permanent establishment or fixed base, within the
meaning of an applicable income tax treaty, of such Person or any other Person,
and (vii) any other Person so designated by the Depositor based upon an Opinion
of Counsel that the Transfer of an Ownership Interest in a Residual Certificate
to such Person may cause any Trust REMIC to fail to qualify as a REMIC at any
time that the Certificates are outstanding. The terms "United States," "State"
and "international organization" shall have the meanings set forth in section
7701 of the Code or successor provisions. A corporation will not be treated as
an instrumentality of the United States or of any State or political subdivision
thereof for these purposes if all of its activities are subject to tax and, with
the exception of the Xxxxxxx Mac, a majority of its board of directors is not
selected by such government unit.
Person: Any individual, corporation, partnership, limited liability
company, joint venture, association, joint-stock company, trust, unincorporated
organization or government, or any agency or political subdivision thereof.
Physical Certificate: As specified in the Preliminary Statement.
Pool Principal Balance: As to any Distribution Date, the aggregate
of the Scheduled Principal Balances of the Mortgage Loans which were Outstanding
Mortgage Loans on the Due Date in the month preceding the month of such
Distribution Date.
Prepayment Interest Excess: As to any Principal Prepayment received
or, in the case of partial Principal Prepayments, applied by the applicable
Servicer or the Master Servicer from the first day through the fifteenth day of
any calendar month (other than the calendar month in which the Cut-off Date
occurs), all amounts paid by the related Mortgagor in respect of interest on
such Principal Prepayment.
Prepayment Interest Shortfall: As to any Distribution Date, Mortgage
Loan and Principal Prepayment received or, in the case of partial Principal
Prepayments, applied, during the month preceding the month of such Distribution
Date, the amount, if any, by which one month's interest at the related Net
Mortgage Rate on such Principal Prepayment exceeds the amount of interest paid
in connection with such Principal Prepayment.
Prepayment Period: As to any Distribution Date, the calendar month
preceding the month of such Distribution Date.
Primary Insurance Policy: Each policy of primary mortgage guaranty
insurance or any replacement policy therefor with respect to any Mortgage Loan.
Principal Distribution Amount: For any Distribution Date and any
Class of Group 4 Certificates, the sum of (i) the Basic Principal Distribution
Amount for such Distribution Date and (ii) the Extra Principal Distribution
Amount for such Distribution Date.
Principal Prepayment: Any payment of principal by a Mortgagor on a
Mortgage Loan that is received in advance of its scheduled Due Date and is not
accompanied by an amount representing scheduled interest due on any date or
dates in any month or months subsequent to the month of prepayment. Partial
Principal Prepayments will be applied by the applicable Servicers in accordance
with the terms of the related Purchase and Servicing Agreements and Partial
Principal Prepayments shall be applied by the applicable Servicers in accordance
with the terms of the related Mortgage Note, and to the extent the Mortgage Note
does not provide otherwise, shall be applied in the Prepayment Period preceding
the receipt thereof.
Principal Prepayment in Full: Any Principal Prepayment made by a
Mortgagor of the entire principal balance of a Mortgage Loan.
Principal Remittance Amount: With respect to any Distribution Date
and the Group 4 Certificates, the amount equal to the sum of the following
amounts (without duplication) with respect to the related Due Period: (i) each
scheduled payment of principal on a Group 4 Mortgage Loan due during such Due
Period and received or advanced by the Servicer prior to the related Servicer
Remittance Date (including the portion of Insurance Proceeds or Condemnation
Proceeds allocable to principal), and all Principal Prepayments received during
the related Prepayment Period, (ii) the Liquidation Proceeds on the Mortgage
Loans allocable to principal actually collected by the Servicer during the
related Prepayment Period, (iii) the portion of the purchase price allocable to
principal with respect to each Deleted Mortgage Loan, the repurchase obligation
for which arose during the related Prepayment Period, that was repurchased
during the period from the prior Distribution Date through the Servicer
Remittance Date for the current Distribution Date, (iv) the principal portion of
all Substitution Adjustment Amounts with respect to the substitutions of
Mortgage Loans that occur during the calendar month in which such Distribution
Date occurs and (v) the allocable portion of the proceeds received with respect
to the termination of the Trust Fund (to the extent such proceeds relate to
principal).
Private Certificate: As specified in the Preliminary Statement.
Pro Rata Share: As to any Distribution Date and any Non-Group 4
Mortgage Loan (i) with respect to any Non-Group 4 Senior Certificate for which
such Mortgage Loan is not in the Related Loan Group, zero, and (ii) with respect
to each other Class of Non-Group 4 Senior Certificates as to which such Mortgage
Loan is in the Related Loan Group, and each Class of Non-Group 4 Junior
Certificates, the ratio that the amount calculated with respect to such
Distribution Date for such Class pursuant to clause (i) of the definition of
Accrued Certificate Interest (without giving effect to any reduction of such
amount pursuant to Section 4.02(c)) bears to the amount calculated with respect
to such Distribution Date for all such Classes of Non-Group 4 Senior
Certificates and for all Classes of Non-Group 4 Junior Certificates pursuant to
clause (i) of the definition of Accrued Certificate Interest (without giving
effect to any reduction of such amount pursuant to Section 4.02(c)); provided,
however, that with respect to the calculation in (ii) above, such calculation
with respect to the Non-Group 4 Junior Certificates shall be made as though each
Class of Non-Group 4 Junior Certificates had a Class Principal Balance equal to
its pro rata share (based on Class Principal Balance) of the Group Subordinate
Amount for the Group which includes such Mortgage Loan, and provided further
that, in the event the Pro Rata Share for any Class of Non-Group 4 Senior
Certificates as so calculated exceeds the portion of the Accrued Certificate
Interest for such Class in accordance with clause (i) of the definition thereof
without adjustment for Section 4.02(c) other than reduction for Net Prepayment
Interest Shortfalls, the amount of such excess shall be allocated pro rata to
all other Classes of Non-Group 4 Senior Certificates based on Accrued
Certificate Interest pursuant to such clause (i) without adjustment pursuant to
Section 4.02(c), and shall be treated as the Pro Rata Share of each such Class.
Prospectus Supplement: The Prospectus Supplement, dated January 29,
2003, relating to the Offered Certificates as supplemented by the Supplement to
the Prospectus Supplement, dated February 5, 2003.
Protected Account: An account established and maintained for the
benefit of Certificateholders by each Servicer with respect to the related
Mortgage Loans and with respect to REO Property pursuant to the respective
Purchase and Servicing Agreements.
Provident: Provident Funding Associates, and its successors and
assigns, in its capacity as seller of the Provident Mortgage Loans to the
Transferor.
Provident Assignment Agreement: The Assignment, Assumption and
Recognition Agreement, dated as of January 30, 2003 among Provident, the
Depositor and the Transferor.
Provident Loan Sale Date: The date that the Transferor purchased the
Provident Mortgage Loans from Provident as set forth on the Mortgage Loan
Schedule under the heading "Loan Sale Date."
Provident Mortgage Loans: The Mortgage Loans for which Provident is
listed as "Loan Seller" on the Mortgage Loan Schedule.
Provident Purchase and Servicing Agreement: Solely with respect to
the Provident Mortgage Loans, the Master Loan Purchase and Servicing Agreement,
dated as of August 1, 2002, between the Transferor, as purchaser and Provident,
as seller, as the same may be amended from time to time, and those certain
assignment and conveyances and assignment and recognition agreements, in each
case related to the Provident Mortgage Loans.
PUD: Planned Unit Development.
Purchase and Servicing Agreements: Each of the American Mortgage
Express Purchase and Servicing Agreement, Bank One Purchase and Servicing
Agreement, Concord Purchase and Servicing Agreement, Countrywide Purchase and
Servicing Agreement, Xxxxxx Purchase and Servicing Agreement, First Financial
Purchase and Servicing Agreement, Genisys Purchase and Servicing Agreement, GMAC
Servicing Agreement, Greenpoint Purchase and Servicing Agreement, Homestar
Purchase and Servicing Agreement, JLM Purchase and Servicing Agreement, Mortgage
Network Purchase and Servicing Agreement, Provident Purchase and Servicing
Agreement, SIB Purchase and Servicing Agreement, Mortgage Store Purchase and
Servicing Agreement, United Capital Purchase and Servicing Agreement and the US
Mortgage Purchase and Servicing Agreement.
Purchase Price: With respect to any Mortgage Loan (i) required to be
purchased by the Transferor pursuant to Section 2.02 or 2.03 hereof, an amount
equal to the sum of (i) 100% of the unpaid principal balance of the Mortgage
Loan on the date of such purchase, and (ii) accrued and unpaid interest thereon
at the applicable Mortgage Rate from the date through which interest was last
paid by the Mortgagor or the applicable Servicer or the Master Servicer, as the
case may be, made an Advance in respect thereof (which was not reimbursed) to
the Due Date in the month in which the Purchase Price is to be distributed to
Certificateholders or (ii) required to be repurchased by the related Loan
Seller, an amount equal to the repurchase price specified in the related
Purchase and Servicing Agreement.
Qualified Insurer: A mortgage guaranty insurance company duly
qualified as such under the laws of the state of its principal place of business
and each state having jurisdiction over such insurer in connection with the
insurance policy issued by such insurer, duly authorized and licensed in such
states to transact a mortgage guaranty insurance business in such states and to
write the insurance provided by the insurance policy issued by it, approved as a
Xxxxxx Mae-approved mortgage insurer and having a claims paying ability rating
of at least "AA" or equivalent rating by a nationally recognized statistical
rating organization. Any replacement insurer with respect to a Mortgage Loan
must have at least as high a claims paying ability rating as the insurer it
replaces had on the Closing Date.
Qualified Mortgage Insurer: Any mortgage insurer that is Xxxxxx Xxx
and Xxxxxxx Mac approved.
Rating Agency: Each of the Rating Agencies specified in the
Preliminary Statement. If any such organization or a successor is no longer in
existence, "Rating Agency" shall be such nationally recognized statistical
rating organization, or other comparable Person, as is designated by the
Depositor, notice of which designation shall be given to the Trustee. References
herein to a given rating category of a Rating Agency shall mean such rating
category without giving effect to any modifiers.
Realized Loss: With respect to each Liquidated Loan, an amount (not
less than zero or more than the Scheduled Principal Balance of the Mortgage
Loan) as of the date of such liquidation, equal to (i) the unpaid principal
balance of the Liquidated Loan as of the date of such liquidation, plus (ii)
interest at the Net Mortgage Rate from the Due Date as to which interest was
last paid or advanced (and not reimbursed) to Certificateholders up to the Due
Date in the month in which Liquidation Proceeds are required to be distributed
on the Scheduled Principal Balance of such Liquidated Loan from time to time,
minus (iii) the Liquidation Proceeds, if any, received during the month in which
such liquidation occurred, to the extent applied as recoveries of interest at
the Net Mortgage Rate and to principal of the Liquidated Loan. With respect to
each Non-Group 4 Mortgage Loan which has become the subject of a Deficient
Valuation, if the principal amount due under the related Mortgage Note has been
reduced, the difference between the principal balance of the Mortgage Loan
outstanding immediately prior to such Deficient Valuation and the principal
balance of the Mortgage Loan as reduced by the Deficient Valuation.
Record Date: With respect to any Distribution Date, the close of
business on the last Business Day of the month preceding the month in which such
Distribution Date occurs.
Refinancing Mortgage Loan: Any Mortgage Loan originated in
connection with the refinancing of an existing mortgage loan.
Regular Certificates: As specified in the Preliminary Statement.
Related Loan Group: With respect to the Class 1-A-1 and Class 1-A-IO
Certificates and the Class L-1B Interest and Class L-1Q Interest, Loan Group 1;
with respect to the Class 2-A-1, Class 2-A-2, Class 2-A-3 and Class 2-A-IO
Certificates and the Class L-2B Interest and Class L-2Q Interest, Loan Group 2;
and with respect to the Class 3-A-1, Class 3-A-IO and Class A-R Certificates and
the Class L-3B Interest and Class L-3Q Interest, Loan Group 3.
Relief Act: The Soldiers' and Sailors' Civil Relief Act of 1940, as
amended or any comparable state or local statute (including the comparable
provisions under the California Military and Veterans Code, as amended).
Relief Act Reductions: With respect to any Distribution Date and any
Mortgage Loan as to which there has been a reduction in the amount of interest
collectible thereon for the most recently ended calendar month as a result of
the application of the Relief Act, the amount, if any, by which (i) interest
collectible on such Mortgage Loan for the most recently ended calendar month is
less than (ii) interest accrued thereon for such month pursuant to the Mortgage
Note.
REMIC: A "real estate mortgage investment conduit" within the
meaning of section 860D of the Code.
REMIC Change of Law: Any proposed, temporary or final regulation,
revenue ruling, revenue procedure or other official announcement or
interpretation relating to REMICs and the REMIC Provisions issued after the
Closing Date.
REMIC Provisions: Provisions of the federal income tax law relating
to real estate mortgage investment conduits, which appear at sections 860A
through 860G of Subchapter M of Chapter 1 of the Code, and related provisions,
and regulations promulgated thereunder, as the foregoing may be in effect from
time to time as well as provisions of applicable state laws.
REO Property: A Mortgaged Property acquired by the Trust Fund
through foreclosure or deed-in-lieu of foreclosure, repossession or otherwise in
connection with a defaulted Mortgage Loan.
Required Insurance Policy: With respect to any Mortgage Loan, any
insurance policy that is required to be maintained from time to time under the
applicable Purchase and Servicing Agreement.
Residual Certificates: As specified in the Preliminary Statement.
Responsible Officer: When used with respect to the Trustee, any Vice
President, any Assistant Vice President, the Secretary, any Assistant Secretary,
any Trust Officer or any other officer of the Trustee customarily performing
functions similar to those performed by any of the above designated officers
having direct responsibility for the administration of this Agreement and also
to whom, with respect to a particular matter, such matter is referred because of
such officer's knowledge of and familiarity with the particular subject.
Restricted Classes: As defined in Section 4.02(d).
Xxxxxxxx-Xxxxx Certification: As defined in Section 8.12(d).
Scheduled Payment: The scheduled monthly payment on a Mortgage Loan
due on any Due Date allocable to principal and/or interest on such Mortgage Loan
which, unless otherwise specified herein, shall give effect to any related Debt
Service Reduction and any Deficient Valuation that affects the amount of the
monthly payment due on such Mortgage Loan.
Scheduled Principal Balance: As to any Mortgage Loan and any
Distribution Date, the unpaid principal balance of such Mortgage Loan as of the
Due Date occurring in the month preceding the month in which that Distribution
Date occurs, as specified in the amortization schedule at the time relating to
that Mortgage Loan (before any adjustment to such amortization schedule by
reason of any moratorium or similar waiver or grace period) after giving effect
to any previous partial Principal Prepayments, Liquidation Proceeds and
Insurance Proceeds allocable to principal received during the Prepayment Period
for the prior Distribution Date and to the payment of principal due on such Due
Date and irrespective of any delinquency in payment by the related Mortgagor.
Securities Act: The Securities Act of 1933, as amended.
Senior Enhancement Percentage: With respect to any Distribution
Date, the percentage obtained by dividing (x) the sum of (i) the sum of the
aggregate of the Class Certificate Balances of the Group 4 Junior Certificates
and the Group 4 Mezzanine Certificates and (ii) the Overcollateralized Amount
(in each case after taking into account the distributions of the Principal
Distribution Amount for such Distribution Date) by (y) the aggregate Scheduled
Principal Balance of the Group 4 Mortgage Loans as of the last day of the
related Due Period for such Distribution Date.
Senior Specified Enhancement Percentage: As of any date of
determination, 18.00%.
Senior Percentage: With respect to any Non-Group 4 Certificate Group
and any Distribution Date, the lesser of (i) 100% and (ii) the percentage
obtained by dividing (a) the aggregate Certificate Principal Balances of all the
Non-Group 4 Senior Certificates (other than the Interest-Only Certificates) in
the related Group immediately preceding such Distribution Date by (b) the sum of
(1) the aggregate Certificate Principal Balances of all the Non-Group 4 Senior
Certificates (other than the Interest-Only Certificates) in the related Group
and (2) the Group Subordinate Amount for the related Certificate Group, in both
cases immediately preceding such Distribution Date.
Senior Prepayment Percentage: For any Distribution Date during the
ten years beginning on the first Distribution Date, 100%. The Senior Prepayment
Percentage for any Non-Group 4 Loan Group and any Distribution Date occurring on
or after the tenth anniversary of the first Distribution Date will, except as
provided herein, be as follows: for any Distribution Date in the first year
thereafter, the Senior Percentage for such Loan Group plus 70% of the Junior
Percentage for such Loan Group for such Distribution Date; for any Distribution
Date in the second year thereafter, the Senior Percentage for such Loan Group
plus 60% of the Junior Percentage for such Loan Group for such Distribution
Date; for any Distribution Date in the third year thereafter, the Senior
Percentage for such Loan Group plus 40% of the Junior Percentage for such Loan
Group for such Distribution Date; for any Distribution Date in the fourth year
thereafter, the Senior Percentage for such Loan Group plus 20% of the Junior
Percentage for such Loan Group for such Distribution Date; and for any
Distribution Date thereafter, the Senior Percentage for such Loan Group for such
Distribution Date (unless on any Distribution Date the Senior Percentage for
such Loan Group exceeds the initial Senior Percentage for such Loan Group, in
which case the Senior Prepayment Percentage for such Distribution Date will once
again equal 100%); provided, however, (i) if on any Distribution Date the Senior
Percentage for such Loan Group exceeds the initial Senior Percentage for such
Loan Group, the Senior Prepayment Percentage for such Loan Group for such
Distribution Date will equal 100%, (ii) if on any Distribution Date before the
Distribution Date in February 2005, prior to giving effect to any distributions
on such Distribution Date, the Junior Percentage for such Loan Group for such
Distribution Date is greater than or equal to twice the initial Junior
Percentage for such Loan Group, then the Senior Prepayment Percentage for such
Loan Group for such Distribution Date will equal the Senior Percentage plus 50%
of the Junior Percentage for such Loan Group and (iii) if on any Distribution
Date on or after the Distribution Date in February 2005, prior to giving effect
to any distributions on such Distribution Date, the Junior Percentage for such
Loan Group for such Distribution Date is greater than or equal to twice the
initial Junior Percentage for such Loan Group, then the Senior Prepayment
Percentage for such Loan Group for such Distribution Date will equal the Senior
Percentage for such Loan Group. Notwithstanding the foregoing, no decrease in
the Senior Prepayment Percentage will occur and the Senior Prepayment Percentage
for such Loan Group for such prior period will be calculated without regard to
clause (ii) or (iii) of the proviso in the sentence above unless both of the
Senior Step Down Conditions are satisfied.
Senior Step Down Conditions: As of the last day of the month
preceding the applicable Distribution Date as to which any decrease in the
Senior Prepayment Percentage applies, (i) the aggregate Scheduled Principal
Balance of all Non-Group 4 Mortgage Loans delinquent 60 days or more, as a
percentage of the aggregate Class Principal Balance of the Non-Group 4 Junior
Certificates on such Distribution Date, does not equal or exceed 50% and (ii)
cumulative Realized Losses with respect to the Mortgage Loans do not exceed (a)
with respect to the Distribution Dates occurring between and including February
2003 and January 2005, 20% of the Original Junior Principal Balance, and (b)
with respect to the Distribution Dates occurring on and after February 2005, 30%
of the Original Junior Principal Balance.
Servicer: Each of Bank One, Countrywide, Downey, GMAC, Homestar, US
Mortgage and Provident, as applicable.
Servicer Remittance Date: As to any Distribution Date, no later than
the 18th day of each calendar month, or if such day is not a Business Day,
either the immediately preceding Business Day, or the immediately succeeding
Business Day, as the case may be.
Servicing Advances: All customary, reasonable and necessary "out of
pocket" costs and expenses incurred in the performance by the Master Servicer of
its master servicing obligations or the applicable Servicer, as the case may be,
of its servicing obligations, including, but not limited to, the cost of (i) the
preservation, restoration and protection of a Mortgaged Property, (ii) any
expenses reimbursable to the Master Servicer or the applicable Servicer, as the
case may be, pursuant to Section 3.11 and any enforcement or judicial
proceedings, including foreclosures, (iii) the management and liquidation of any
REO Property and (iv) compliance with the obligations under Section 3.09.
Servicing Fee: As to each Mortgage Loan and any Distribution Date,
an amount payable out of each full payment of interest received on such Mortgage
Loan and equal to one-twelfth of the Servicing Fee Rate multiplied by the
Scheduled Principal Balance of such Mortgage Loan.
Servicing Fee Rate: With respect to each Mortgage Loan, the per
annum rate set forth on the Mortgage Loan Schedule.
SIB: SIB Mortgage Corporation, and its successors and assigns, in
its capacity as seller of the SIB Mortgage Loans to the Transferor.
SIB Assignment Agreement: The Assignment, Assumption and Recognition
Agreement, dated as of January 30, 2003 among SIB, the Depositor and the
Transferor.
SIB Loan Sale Date: The date that the Transferor purchased the SIB
Mortgage Loans from SIB as set forth on the Mortgage Loan Schedule under the
heading "Loan Sale Date."
SIB Mortgage Loans: The Mortgage Loans for which SIB is listed as
"Loan Seller" on the Mortgage Loan Schedule.
SIB Purchase and Servicing Agreement: Solely with respect to the SIB
Mortgage Loans, the Master Seller's Purchase, Warranties and Interim Servicing
Agreement, dated as of September 1, 2002, between the Transferor, as purchaser
and SIB, as seller, as the same may be amended from time to time, and those
certain assignment and conveyances and assignment and recognition agreements, in
each case related to the SIB Mortgage Loans.
60+ Day Delinquent Mortgage Loan: Each Group 4 Mortgage Loan with
respect to which any portion of a Monthly Payment is, as of the last day of the
prior Due Period, two months or more past due (without giving effect to any
grace period), each Group 4 Mortgage Loan in foreclosure, all REO Property and
each Group 4 Mortgage Loan for which the Mortgagor has filed for bankruptcy.
Similar Law: As defined in Section 5.02(b) hereof.
S&P: Standard & Poor's, a division of The XxXxxx-Xxxx Companies,
Inc. If S&P is designated as a Rating Agency in the Preliminary Statement, for
purposes of Section 10.05(b) the address for notices to S&P shall be Standard &
Poor's, 00 Xxxxxxxx, 00xx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: Mortgage
Surveillance Monitoring, or such other address as S&P may hereafter furnish to
the Trustee, Depositor and the Master Servicer.
Special Hazard Coverage Termination Date: The point in time at which
the Special Hazard Loss Coverage Amount is reduced to zero.
Special Hazard Loss: Any Realized Loss on any Non-Group 4 as
reported by the applicable Servicer to the Master Servicer suffered by a
Mortgaged Property on account of direct physical loss but not including (i) any
loss of a type covered by a hazard insurance policy or a flood insurance policy
required to be maintained with respect to such Mortgaged Property pursuant to
Section 3.11 to the extent of the amount of such loss covered thereby, or (ii)
any loss caused by or resulting from:
(a) normal wear and tear;
(b) fraud, conversion or other dishonest act on the part of the
Trustee, any Servicer the Master Servicer or any of their agents or
employees (without regard to any portion of the loss not covered by any
errors and omissions policy);
(c) errors in design, faulty workmanship or faulty materials, unless
the collapse of the property or a part thereof ensues and then only for
the ensuing loss;
(d) nuclear or chemical reaction or nuclear radiation or radioactive
or chemical contamination, all whether controlled or uncontrolled, and
whether such loss be direct or indirect, proximate or remote or be in
whole or in part caused by, contributed to or aggravated by a peril
covered by the definition of the term "Special Hazard Loss";
(e) hostile or warlike action in time of peace and war, including
action in hindering, combating or defending against an actual, impending
or expected attack:
1. by any government or sovereign power, de jure or de
facto, or by any authority maintaining or using
military, naval or air forces; or
2. by military, naval or air forces; or
3. by an agent of any such government, power, authority or
forces;
(f) any weapon of war employing nuclear fission, fusion or other
radioactive force, whether in time of peace or war; or
(g) insurrection, rebellion, revolution, civil war, usurped power or
action taken by governmental authority in hindering, combating or
defending against such an occurrence, seizure or destruction under
quarantine or customs regulations, confiscation by order of any government
or public authority or risks of contraband or illegal transportation or
trade.
Special Hazard Loss Coverage Amount: With respect to the first
Distribution Date, $3,661,499, less (i) the aggregate amount of Special Hazard
Losses that would have been previously allocated to the Non-Group 4 Junior
Certificates in the absence of the Loss Allocation Limitation and (ii) the
Adjustment Amount. All principal balances for the purpose of this definition
will be calculated as of the first day of the calendar month preceding the month
of such Distribution Date after giving effect to Scheduled Payments on the
Mortgage Loans then due, whether or not paid. As of any Distribution after the
Cross-Over Date, the Special Hazard Loss Coverage Amount will be zero.
Special Hazard Mortgage Loan: A Liquidated Loan as to which a
Special Hazard Loss has occurred.
Specified Overcollateralized Amount: Prior to the Stepdown Date, an
amount equal to 1.00% of the Cut-Off Date Pool Balance of the Group 4 Loans; on
and after the Stepdown Date, an amount equal to 2.00% of the aggregate Scheduled
Principal Balance of the Group 4 Loans for that Distribution Date, subject,
until the Certificate Principal Balance of each class of Group 4 Certificates
has been reduced to zero, to a minimum amount equal to 1.00% of the Cut-Off Date
Principal Balance of the Group 4 Loans; provided, however, that if, on any
Distribution Date, a Trigger Event has occurred, the Specified
Overcollateralized Amount will not be reduced to the applicable percentage of
the then Scheduled Principal Balance of the Group 4 Loans for that Distribution
Date but instead remain the same as the prior period's Specified
Overcollateralized Amount until the Distribution Date on which a Trigger Event
is no longer occurring.
Startup Day: The Closing Date.
Stepdown Date: The earlier to occur of (a) the date on which the
aggregate Class Certificate Balances of the Class 4-A Certificates have been
reduced to zero, and (b) the later to occur of (i) the Distribution Date in
February 2006, and (ii) the first Distribution Date on which the Senior
Enhancement Percentage is greater than or equal to the Senior Specified
Enhancement Percentage.
Substitution Adjustment Amount: The meaning ascribed to such term
pursuant to Section 2.03.
Tax Matters Person: The person designated as "tax matters person" of
each of the Trust REMICs in the manner provided under Treasury Regulations
Section 1.860F-4(d) and Treasury Regulations Section 301.6231(a)(7)-1.
Total Monthly Excess Spread: As to any Distribution Date, an amount
equal to the excess if any, of (i) the interest collected (prior to the Servicer
Remittance Date) or advanced on the Group 4 Mortgage Loans for Due Dates in the
related Due Period (net of the Servicing Fee) over (ii) the interest payable to
the Classes of Group 4 Certificates on such Distribution Date.
Transfer: Any direct or indirect transfer or sale of any Ownership
Interest in a Residual Certificate.
Transferor: UBS Warburg Real Estate Securities Inc., in its capacity
as seller of the Mortgage Loans to the Depositor pursuant to the Mortgage Loan
Purchase Agreement.
Trust: As defined in Section 2.01(c).
Trust REMIC: Any of the Lower-Tier REMIC A, Lower-Tier REMIC B,
Middle-Tier REMIC and Upper-Tier REMIC created hereunder.
Trigger Event: After the Stepdown Date, a Trigger Event exists if
(i) the quotient (expressed as a percentage) of (x) the rolling three month
average of the outstanding principal balances of 60+ Day Delinquent Mortgage
Loans, (including each Group 4 Mortgage Loan in Foreclosure, each Group 4
Mortgage Loan for which the related Mortgagor has filed for bankruptcy after the
Closing date and each Group 4 Mortgage Loan related to a REO Property), divided
by (y) the aggregate outstanding principal balance of the Group 4 Mortgage Loans
equals or exceeds 28% of the prior period's Senior Enhancement Percentage or
(ii) the quotient (expressed as a percentage) of (x) the aggregate amount of
Realized Losses incurred since the Cut-off Date through the last day of the
related Prepayment Period divided by (y) the Group 4 Cut-off Date Pool Balance
exceeds the applicable percentages set forth below with respect to any
Distribution Date:
DISTRIBUTION DATE OCCURRING IN LOSS PERCENTAGE
------------------------------ ---------------
February 2006 through January 2007 0.5%
February 2007 through January 2008 0.9%
February 2008 through January 2009 1.0%
February 2009 through January 2010 1.2%
February 2010 and thereafter 1.3%
Trust Fund: The corpus of the trust created hereunder consisting of
(i) the Mortgage Loan Purchase Agreement, the Purchase and Servicing Agreements,
(ii) the Mortgage Loans and all interest and principal received on or with
respect thereto after the Cut-off Date to the extent not applied in computing
the Cut-off Date Principal Balance thereof; (iii) the Collection Account and the
Distribution Account all amounts deposited therein pursuant to the applicable
provisions of this Agreement; (iv) property that secured a Mortgage Loan and has
been acquired by foreclosure, deed-in-lieu of foreclosure or otherwise; and (v)
all proceeds of the conversion, voluntary or involuntary, of any of the
foregoing.
Trustee: JPMorgan Chase Bank, a New York banking corporation, and
its successors and, if a successor trustee is appointed hereunder, such
successor.
Two Times Test: This test is satisfied with respect to a Class of
Non-Group 4 Junior Certificates and any Distribution Date if (a) on any
Distribution Date prior to the Distribution Date in January 2006, the Fractional
Interest of such class is greater than or equal to twice its Fractional Interest
on the Closing Date and (b) the Senior Prepayment Percentage for such
Distribution Date is determined in accordance with clause (ii) or (iii) of the
proviso in the definition of "Senior Prepayment Percentage."
Undercollateralized Group: Any Certificate Group (other than Group
4), as to which, on any Distribution Date, the aggregate Certificate Principal
Balances of the Non-Group 4 Senior Certificates related to such Loan Group
(after giving effect to distributions to be made on such Distribution Date) is
greater than the Loan Group Principal Balance of such Loan Group for the
following Distribution Date.
United Capital: United Capital Mortgage Corporation, and its
successors and assigns, in its capacity as seller of the United Capital Mortgage
Loans.
United Capital Loan Sale Date: The date that the Transferor
purchased the United Capital Mortgage Loans from United Capital as set forth on
the Mortgage Loan Schedule under the heading "Loan Sale Date."
United Capital Mortgage Loans: The Mortgage Loans for which United
Capital is listed as "Loan Seller" in the Mortgage Loan Schedule.
United Capital Purchase and Servicing Agreement: Solely with respect
to the United Capital Mortgage Loans, the Master Seller's Purchase, Warranties
and Interim Servicing Agreement, dated as of October 1, 2002, between the
Transferor and United Capital, as the same may be amended from time to time, and
those certain assignment and conveyances and assignment and recognition
agreements, in each case related to the United Capital Mortgage Loans.
US Mortgage: US Mortgage, and its successors and assigns, in its
capacity as servicer of the US Mortgage Mortgage Loans.
US Mortgage Mortgage Loans: The Mortgage Loans for which US Mortgage
is listed as "Servicer" in the Mortgage Loan Schedule.
US Mortgage Purchase and Servicing Agreement: Solely with respect to
the US Mortgage Mortgage Loans, the Servicing Agreement, dated as of September
1, 2002, between the Transferor and US Mortgage, as the same may be amended from
time to time, and those certain assignment and conveyances and assignment and
recognition agreements, in each case related to the US Mortgage Mortgage Loans.
Unpaid Interest Amounts: As of any Distribution Date and any Class
of Group 4 Certificates, the sum of (a) the excess of (x) the portion of the
Accrued Certificate Interest from prior Distribution Dates remaining unpaid over
(y) the amount in respect of interest on that Class of Certificates actually
distributed on the preceding Distribution Date and (b) interest on such unpaid
amount at the applicable Pass-Through Rate (to the extent permitted by
applicable law).
Upper-Tier REMIC: As described in the Preliminary Statement.
Upper-Tier REMIC Interest: Any one of the Upper-Tier REMIC Regular
Interests or Class A-UR Interest.
Upper-Tier REMIC Regular Interest: Any of the REMIC regular
interests in the Upper-Tier REMIC represented by the Class 1-A-1 Certificates,
Class 1-A-IO Certificates, Class 2-A-1 Certificates, Class 2-A-2 Certificates,
Class 2-A-3 Certificates, Class 2-A-IO Certificates, Class 3-A-1 Certificates,
Class 3-A-IO Certificates, Class 4-A-1 Certificates, Class 4-M-1 Certificates,
Class 4-M-2 Certificates, Class 4-B Certificates, Class 4-X Certificates, Class
B-1 Certificates, Class B-2 Certificates Class B-3 Certificates, Class B-4
Certificates, Class B-5 Certificates and Class B-6 Certificates as described in
the Preliminary Statement and Section 2.07.
Voting Rights: The portion of the voting rights of all of the
Certificates which is allocated to any Certificate. As of any date of
determination, (a) the Interest-Only Certificates will each be entitled to 1% in
the aggregate of all Voting Rights (such Voting Rights to be allocated among the
Holders of Certificates of each such Class in accordance with their respective
Percentage Interests), and (b) the remaining Voting Rights (and the Voting
Rights allocated to the Interest-Only Certificates if there are no Interest-Only
Certificates) shall be allocated among Holders of the remaining Classes of
Certificates in proportion to the Certificate Principal Balances of their
respective Certificates on such date.
Section 1.02. Certain Calculations.
Unless otherwise specified herein, for purposes of determining
amounts with respect to the Certificates and the rights and obligations of the
parties hereto, all calculations of interest (other than as provided in the
Mortgage Loan documents) provided for herein shall be made on the basis of a
360-day year consisting of twelve 30-day months.
ARTICLE II
CONVEYANCE OF MORTGAGE LOANS; REPRESENTATIONS AND WARRANTIES
Section 2.01. Conveyance of Mortgage Loans.
(a) The Depositor, concurrently with the execution and delivery
hereof, hereby sells, transfers, assigns, sets over and otherwise conveys to the
Trustee for the benefit of the Certificateholders, without recourse, all the
right, title and interest of the Depositor in and to the Trust Fund together
with all rights assigned by the Transferor to the Depositor, pursuant to the
Mortgage Loan Purchase Agreement, solely with respect to the Mortgage Loans,
and, solely with respect to the Mortgage Loans, all of the Transferor's right,
title and interest in and to the Purchase and Servicing Agreements and the
Assignment Agreements. In connection with the foregoing assignments, the
Transferor has caused the Servicers to enter into Assignment, Assumption and
Recognition Agreements.
(b) In connection with the transfer and assignment set forth in
clause (a) above, the Depositor has delivered or caused to be delivered to the
Master Servicer, on behalf of the Trustee, for the benefit of the
Certificateholders the following documents or instruments with respect to each
Mortgage Loan so assigned:
(i) the original Mortgage Note endorsed by manual or facsimile
signature in blank in the following form: "Pay to the order of ___________
without recourse," with all intervening endorsements showing a complete
chain of endorsement from the originator to the Person endorsing the
Mortgage Note (each such endorsement being sufficient to transfer all
right, title and interest of the party so endorsing, as noteholder or
assignee thereof, in and to that Mortgage Note);
or, with respect to any Lost Mortgage Note, a lost note affidavit
from the related Loan Seller or the Transferor stating that the original
Mortgage Note was lost or destroyed, together with a copy of such Mortgage
Note;
(ii) except as provided below, the original recorded Mortgage or a
copy of such Mortgage certified by the related Loan Seller as being a true
and complete copy of the Mortgage;
(iii) a duly executed assignment of the Mortgage (which may be
included in a blanket assignment or assignments), endorsed in the
following form: "JPMorgan Chase Bank in trust for the MASTR Adjustable
Rate Mortgages Trust 2003-1 for the benefit of the Holders of the Mortgage
Pass-Though Certificates, Series 2003-1" together with, except as provided
below, all interim recorded assignments of such mortgage (each such
assignment, when duly and validly completed, to be in recordable form and
sufficient to effect the assignment of and transfer to the assignee
thereof, under the Mortgage to which the assignment relates); provided
that, if the related Mortgage has not been returned from the applicable
public recording office, such assignment of the Mortgage may exclude the
information to be provided by the recording office;
(iv) the original or copies of each assumption, modification,
written assurance or substitution agreement, if any; and
(v) except as provided below, the original or duplicate original
lender's title policy and all riders thereto.
Notwithstanding the foregoing, if any Mortgage has been recorded in
the name of Mortgage Electronic Registration System, Inc. ("MERS") or its
designee, no assignment of Mortgage in favor of the Trustee will be required to
be prepared or delivered and instead, the Master Servicer shall enforce the
obligations of the applicable Servicer under its related Purchase and Servicing
Agreement to cause the Trust to be shown as the owner of the related Mortgage
Loan on the records of MERS for the purpose of the system of recording transfers
of beneficial ownership of mortgages maintained by MERS.
If in connection with any Mortgage Loan the Depositor cannot deliver
(a) the original recorded Mortgage, (b) all interim recorded assignments or (c)
the lender's title policy (together with all riders thereto) satisfying the
requirements of clause (ii), (iii) or (v) above, respectively, concurrently with
the execution and delivery hereof because such document or documents have not
been returned from the applicable public recording office in the case of clause
(ii) or (iii) above, or because the title policy has not been delivered to
either the Master Servicer or the Depositor by the applicable title insurer in
the case of clause (v) above, the Depositor shall promptly deliver to the Master
Servicer, in the case of clause (ii) or (iii) above, such original Mortgage or
such interim assignment, as the case may be, with evidence of recording
indicated thereon upon receipt thereof from the public recording office, or a
copy thereof, certified, if appropriate, by the relevant recording office, but
in no event shall any such delivery of the original Mortgage and each such
interim assignment or a copy thereof, certified, if appropriate, by the relevant
recording office, be made later than one year following the Closing Date, or, in
the case of clause (v) above, no later than 120 days following the Closing Date;
provided, however, in the event the Depositor is unable to deliver by such date
each Mortgage and each such interim assignment by reason of the fact that any
such documents have not been returned by the appropriate recording office, or,
in the case of each such interim assignment, because the related Mortgage has
not been returned by the appropriate recording office, the Depositor shall
deliver such documents to the Master Servicer as promptly as possible upon
receipt thereof and, in any event, within 720 days following the Closing Date.
The Depositor shall forward or cause to be forwarded to the Master Servicer (a)
from time to time additional original documents evidencing an assumption or
modification of a Mortgage Loan and (b) any other documents required to be
delivered by the Depositor to the Master Servicer. In the event that the
original Mortgage is not delivered and in connection with the payment in full of
the related Mortgage Loan and the public recording office requires the
presentation of a "lost instruments affidavit and indemnity" or any equivalent
document, because only a copy of the Mortgage can be delivered with the
instrument of satisfaction or reconveyance, the Master Servicer shall execute
and deliver or cause to be executed and delivered such a document to the public
recording office. In the case where a public recording office retains the
original recorded Mortgage or in the case where a Mortgage is lost after
recordation in a public recording office, the Transferor shall deliver or cause
to be delivered to the Master Servicer a copy of such Mortgage certified by such
public recording office to be a true and complete copy of the original recorded
Mortgage.
As promptly as practicable subsequent to such transfer and
assignment, set forth in clause (a) above and in any event, within ninety (90)
days thereafter, the Master Servicer shall affix the Trustee's name to each
assignment of Mortgage, as the assignee thereof, and, subject to Section 2.02,
the Master Servicer shall enforce the obligations of the related Servicer
pursuant to the related Purchase and Servicing Agreement shall (i) cause such
assignment to be in proper form for recording in the appropriate public office
for real property records and (ii) cause to be delivered for recording in the
appropriate public office for real property records the assignments of the
Mortgages to the Trustee, except that, with respect to any assignments of
Mortgage as to which the related Servicer has not received the information
required to prepare such assignment in recordable form, the related Servicer's
obligation to do so and to deliver the same for such recording shall be as soon
as practicable after receipt of such information and in any event within ninety
(90) days after receipt thereof and that the related Servicer need not cause to
be recorded any assignment which relates to a Mortgage Loan (a) in any
jurisdiction under the laws of which an Opinion of Counsel has been delivered to
the Trustee stating the recordation of such assignment is not necessary to
protect the Trustee's and the Certificateholders' interest in the related
Mortgage Loan or (b) the Mortgaged Property and related Mortgage File which are
located in the State of California.
In the case of Mortgage Loans that have been prepaid in full as of
the Closing Date, the Depositor, in lieu of delivering the above documents to
the Master Servicer on behalf of the Trustee, will deposit in the Collection
Account the portion of such payment that is required to be deposited in the
Collection Account pursuant to Section 3.07 hereof.
(c) The Depositor does hereby establish, pursuant to the further
provisions of this Agreement and the laws of the State of New York, an express
trust (the "Trust") to be known, for convenience, as MASTR Adjustable Rate
Mortgages Trust 2003-1" and JPMorgan Chase Bank is hereby appointed as Trustee
in accordance with the provisions of this Agreement.
Section 2.02. Acceptance by Trustee of the Mortgage Loans.
The Master Servicer, on behalf of the Trustee, acknowledges receipt
of the documents identified in the Initial Certification in the form annexed
hereto as Exhibit F and declares that it holds and will hold such documents and
the other documents delivered to it constituting the Mortgage Files, and each of
the Master Servicer and Trustee together declare that it holds or will hold such
other assets as are included in the Trust Fund, in trust for the exclusive use
and benefit of all present and future Certificateholders. The Master Servicer
acknowledges that it will maintain possession of the Mortgage Notes in the State
of Minnesota, unless otherwise permitted by the Rating Agencies and the Trustee.
The Master Servicer agrees to execute and deliver on the Closing
Date to the Depositor and the Trustee an Initial Certification in the form
annexed hereto as Exhibit F. Based on its review and examination, and only as to
the documents identified in such Initial Certification, the Master Servicer
acknowledges, subject to any applicable exceptions noted on Exhibit F, that such
documents appear regular on their face and relate to such Mortgage Loan. The
Master Servicer shall be under no duty or obligation to (i) inspect, review or
examine said documents, instruments, certificates or other papers to determine
that the same are genuine, enforceable or appropriate for the represented
purpose or that they have actually been recorded in the real estate records or
that they are other than what they purport to be on their face or (ii) determine
whether the Mortgage File should include any of the documents specified in
Section 2.01(b)(iv) unless the Mortgage Loan Schedule indicates that such
documents are applicable.
Not later than 90 days after the Closing Date, the Master Servicer
shall deliver to the Depositor, the Trustee and the Transferor a Final
Certification in the form annexed hereto as Exhibit G, with any applicable
exceptions noted thereon. The Master Servicer shall make available, upon request
of any Certificateholder, a copy of any exceptions noted on the Initial
Certification or the Final Certification.
If, in the course of such review, the Master Servicer finds any
document constituting a part of a Mortgage File which does not meet the
requirements of Section 2.01, the Master Servicer shall list such as an
exception in the Final Certification; provided, however, that the Master
Servicer shall not make any determination as to whether (i) any endorsement is
sufficient to transfer all right, title and interest of the party so endorsing,
as noteholder or assignee thereof, in and to that Mortgage Note, (ii) any
assignment is in recordable form or is sufficient to effect the assignment of
and transfer to the assignee thereof under the mortgage to which the assignment
relates or (iii) the Mortgage File should include any of the documents specified
in Section 2.01(b)(iv) unless the Mortgage Loan Schedule indicates that such
documents are applicable. The Trustee shall enforce the applicable duties of any
Originator to correct and cure such document defects pursuant to the terms of
the related Purchase and Servicing Agreements and if the related Originator
fails to correct or cure the defect within a period of time specified in the
related Purchase and Servicing Agreement and such defect materially and
adversely affects the interests of the Certificateholders in the related
Mortgage Loan, the Trustee shall enforce the Originator's obligation pursuant to
the related Purchase and Servicing Agreement or the Transferor's obligations
hereunder, to purchase such Mortgage Loan at the Purchase Price. Any such
purchase of a Mortgage Loan shall not be effected prior to the delivery to the
Master Servicer of a Request for Release substantially in the form of Exhibit L.
The Purchase Price for any such Mortgage Loan shall be paid by the applicable
Originator or the Transferor to the Master Servicer for deposit in the
Collection Account on or prior to the Distribution Account Deposit Date for the
Distribution Date in the month following the month of repurchase and, upon
receipt of such deposit, the Master Servicer shall release the related Mortgage
File such Originator and the Trustee shall execute and deliver at such
Originator's or the Transferor's request such instruments of transfer or
assignment prepared by the Originator, in each case without recourse,
representation or warranty, as shall be necessary to vest in the such
Originator, or a designee, the Trustee's interest in any Mortgage Loan released
pursuant hereto.
The Master Servicer shall retain possession and custody of each
Mortgage File in accordance with and subject to the terms and conditions set
forth herein. Pursuant to the terms of the related Purchase and Servicing
Agreement, the Master Servicer will cause each of the related Servicers to
promptly deliver to it and thereupon will promptly deposit within each Mortgage
File, upon the execution or receipt thereof, the originals of such other
documents or instruments constituting the Mortgage File as come into the
possession of the related Servicers from time to time.
It is understood and agreed that the obligations of an Originator,
pursuant to the applicable Purchase and Servicing Agreement, and the Transferor
hereunder, to purchase any Mortgage Loan which does not meet the requirements of
Section 2.01 above or substitute for the related Mortgage Loan an Eligible
Substitute Mortgage Loan shall constitute the sole remedy respecting such defect
available to the Trustee, the Master Servicer, the Depositor and any
Certificateholder.
Section 2.03. Remedies for Breaches of Representations and
Warranties.
The Transferor hereby makes the representations and warranties set
forth in Schedule II hereto, and by this reference incorporated herein, to the
Depositor and the Trustee, as of the Closing Date, or if so specified therein,
as of the Cut-off Date.
Upon discovery by any of the parties hereto of a breach of a
representation or warranty made by the Transferor pursuant to this Section 2.03
or by an Originator under the related Purchase and Servicing Agreement that
materially and adversely affects the interests of the Certificateholders in any
Mortgage Loan, the party discovering such breach shall give prompt notice
thereof to the other parties. A breach which causes a Mortgage Loan not to
constitute a "qualified mortgage" within the meaning of Section 860G(a)(3) of
the Code, will be deemed automatically to materially and adversely affect the
interests of the Certificateholders in such Mortgage Loan. Upon receiving notice
of a breach, the Trustee shall in turn notify the applicable Originator or the
Transferor, as applicable, of such breach. The Trustee and, in the case of
clause (i) that follows, the Trustee and the Transferor, shall enforce the
obligations of (i) the applicable Originator in accordance with the related
Purchase and Servicing Agreement, to correct or cure any such breach of a
representation or warranty made pursuant to the related Purchase and Servicing
Agreement within the time period specified in the related Purchase and Servicing
Agreement and (ii) the Transferor in accordance with this Section 2.03 to
correct or cure any such breach of a representation or warranty made herein, and
if the Originator or the Transferor, as applicable, fails to correct or cure the
defect within such period, and such defect materially and adversely affects the
interests of the Certificateholders in the related Mortgage Loan, the Trustee
shall enforce the Originator's obligation, pursuant to the related Purchase and
Servicing Agreement, or the Transferor's obligations hereunder, as the case may
be, to (i) purchase such Mortgage Loan at the Purchase Price or (ii) substitute
for the related Mortgage Loan a Substitute Mortgage Loan, in each case, such
Mortgage Loan (a "Deleted Mortgage Loan") will be removed from the Trust Fund.
The Transferor hereby covenants that within ninety (90) days of the
earlier of its discovery or its receipt of written notice from any party of a
breach of any representation or warranty made pursuant to this Section 2.03
which materially and adversely affects the interest of the Certificateholders in
any Mortgage Loan it shall cure such breach in all material respects, and if
such breach is not so cured, shall, (i) if such ninety (90) day period expires
prior to the second anniversary of the Closing Date, remove such Deleted
Mortgage Loan from the Trust Fund and substitute in its place an Eligible
Substitute Mortgage Loan or Loans into the Trust Fund, in the manner and subject
to the conditions set forth in this Section; or (ii) repurchase the affected
Mortgage Loan or Mortgage Loans from the Trustee at the Purchase Price in the
manner set forth below. The Transferor shall promptly reimburse the Master
Servicer and the Trustee for any expenses reasonably incurred by the Master
Servicer or the Trustee in respect of enforcing the remedies for such breach by
the Transferor.
With respect to any Eligible Substitute Mortgage Loan or Loans, the
Transferor shall deliver to the Master Servicer on behalf of the Trustee for the
benefit of the Certificateholders the Mortgage Note, the Mortgage, the related
assignment of the Mortgage, and such other documents and agreements as are
required by Section 2.01, with the Mortgage Note endorsed and the Mortgage
assigned as required by Section 2.01. Any substitution made by an Originator
will be made in accordance with the terms of the related Purchase and Servicing
Agreement which terms shall be enforced by the Trustee. No substitution is
permitted to be made on any day in any calendar month after the Determination
Date for such month.
With respect to substitutions made by the Transferor, Scheduled
Payments due with respect to Eligible Substitute Mortgage Loans in the month of
substitution shall not be part of the Trust Fund and will be retained by the
Transferor on the next succeeding Distribution Date. For the month of
substitution, distributions to Certificateholders will include the monthly
payment due on any Deleted Mortgage Loan for such month and thereafter the
Transferor shall be entitled to retain all amounts received in respect of such
Deleted Mortgage Loan. The Master Servicer shall amend the Mortgage Loan
Schedule for the benefit of the Certificateholders to reflect the removal of
such Deleted Mortgage Loan and the substitution of the Eligible Substitute
Mortgage Loan or Loans and the Master Servicer shall deliver the amended
Mortgage Loan Schedule to the Trustee. Upon such substitution, the Eligible
Substitute Mortgage Loan or Loans shall be subject to the terms of this
Agreement in all respects, and the Transferor shall be deemed to have made with
respect to such Eligible Substitute Mortgage Loan or Loans, as of the date of
substitution, the representations and warranties made pursuant to this Section
2.03 with respect to such Mortgage Loan. Upon any such substitution and the
deposit to the Collection Account of the amount required to be deposited therein
in connection with such substitution as described in the following paragraph,
the Master Servicer shall release the Mortgage File held for the benefit of the
Certificateholders relating to such Deleted Mortgage Loan to the applicable
Originator or the Transferor and shall execute and deliver or cause the Trustee
to execute and deliver at Originator's or Transferor's direction such
instruments of transfer or assignment prepared by the Originator or Transferor,
in each case without recourse, representation or warranty, as shall be necessary
to vest title in the Originator or Transferor, as applicable, or its designee,
the Trustee's interest in any Deleted Mortgage Loan substituted for pursuant to
this Section 2.03.
For any month in which an Originator or the Transferor substitutes
one or more Eligible Substitute Mortgage Loans for one or more Deleted Mortgage
Loans, the Master Servicer will determine the amount (if any) by which the
aggregate principal balance of all such Eligible Substitute Mortgage Loans as of
the date of substitution is less than the aggregate outstanding principal
balance of all such Deleted Mortgage Loans (after application of the scheduled
principal portion of the monthly payments due in the month of substitution). The
amount of such shortage (the "Substitution Adjustment Amount") plus an amount
equal to the aggregate of any unreimbursed Advances with respect to such Deleted
Mortgage Loans shall be remitted by the Transferor (or the applicable Loan
Seller if such substitution is made by Loan Seller) to the Master Servicer and
the Master Servicer shall deposit such amounts received from the Transferor or
Loan Seller into the Collection Account on or before the Distribution Account
Deposit Date for the Distribution Date in the month succeeding the calendar
month during which the related Mortgage Loan became required to be purchased or
replaced hereunder.
In the event that an Originator or the Transferor, as applicable,
shall have repurchased a Mortgage Loan, the Purchase Price therefor shall be
deposited in the Collection Account pursuant to Section 3.07 on or before the
Distribution Account Deposit Date for the Distribution Date in the month
following the month during which such Originator or the Transferor became
obligated hereunder to repurchase or replace such Mortgage Loan and upon such
deposit of the Purchase Price and receipt of a Request for Release in the form
of Exhibit L hereto, the Master Servicer shall release the related Mortgage File
held for the benefit of the Certificateholders to such Person, and the Trustee
shall execute and deliver at such Person's direction such instruments of
transfer or assignment prepared by such Person, in each case without recourse,
representation or warranty, as shall be necessary to transfer title from the
Trustee. It is understood and agreed that the obligation under this Agreement of
any Person to cure, repurchase or replace any Mortgage Loan as to which a breach
has occurred and is continuing shall constitute the sole remedies against such
Persons respecting such matters available to Certificateholders, the Master
Servicer, the Depositor or the Trustee on their behalf.
The provisions of this Section 2.03 shall survive the conveyance and
assignment of the Mortgage Files to the Trustee and the delivery of the
respective Mortgage Files to the Master Servicer for the benefit of the Trustee
and the Certificateholders.
Section 2.04. Representations and Warranties of the Depositor as to
the Mortgage Loans.
The Depositor hereby represents and warrants to the Trustee and the
Master Servicer with respect to each Mortgage Loan as of the date hereof or such
other date set forth herein that as of the Closing Date, and following the
transfer of the Mortgage Loans to it by the Transferor, the Depositor had good
title to the Mortgage Loans and the Mortgage Notes were subject to no offsets,
liens, defenses or counterclaims.
It is understood and agreed that the representations and warranties
set forth in this Section 2.04 shall survive delivery of the Mortgage Files to
the Master Servicer. Upon discovery by the Depositor, the Transferor, the Master
Servicer or the Trustee of a breach of any of the foregoing representations and
warranties set forth in this Section 2.04 (referred to herein as a "breach"),
which breach materially and adversely affects the interest of the
Certificateholders, the party discovering such breach shall give prompt written
notice to the others and to each Rating Agency.
Section 2.05. [Reserved]
Section 2.06. Execution and Delivery of Certificates.
The Trustee acknowledges the transfer and assignment to it of the
assets of the Trust Fund related to the Group 1 Mortgage Loans, Group 2 Mortgage
Loans and Group 3 Mortgage Loans, and acknowledges the issuance of the
Lower-Tier REMIC A Interests in exchange therefor. The Trustee acknowledges the
transfer and assignment to it of the assets of the Trust Fund related to the
Group 4 Mortgage Loans and acknowledges the issuance of the Lower-Tier REMIC B
Interests in exchange therefor. The Trustee further acknowledges the transfer
and assignment to it of the Lower-Tier REMIC A Regular Interests and
acknowledges the issuance of the Middle-Tier REMIC Interests in exchange
therefor. The Trustee further acknowledges the transfer and assignment to it of
the Middle-Tier-REMIC Regular Interests and Lower-Tier REMIC B Regular Interests
and acknowledges the issuance of the Upper-Tier REMIC Interests. Concurrently
with such transfer and assignment, the Trustee has executed, authenticated and
delivered to or upon the order of the Depositor, the Certificates in authorized
denominations evidencing directly or indirectly the entire ownership of the
Trust Fund. The Trustee agrees to hold the Trust Fund, the Lower-Tier REMIC A
Interests, the Lower-Tier REMIC B Interests, the Middle-Tier REMIC Interests and
the Upper-Tier REMIC Interests and to exercise the rights referred to above for
the benefit of all present and future Holders of the Certificates and to perform
the duties set forth in this Agreement to the best of its ability, to the end
that the interests of the Holders of the Certificates may be adequately and
effectively protected.
Section 2.07. REMIC Matters.
(a) The Preliminary Statement sets forth the designations as
"regular interests" or "residual interests" and "latest possible maturity date"
for federal income tax purposes of all interests created hereby. The "Startup
Day" of each Trust REMIC constituted by the Trust Fund for purposes of the REMIC
Provisions shall be the Closing Date. Each Trust REMIC's fiscal year shall be
the calendar year.
(b) The pass-through rate with respect to the Class L-1B Interest
and Class L-1Q Interest shall be a per annum rate equal to the weighted average
of the Net Mortgage Rates on the Group 1 Mortgage Loans; the pass-through rate
with respect to the Class L-2B Interest and Class L-2Q Interest shall be a per
annum rate equal to the weighted average of the Net Mortgage Rates on the Group
2 Mortgage Loans; and the pass-through rate with respect to the Class L-3B
Interest and Class L-3Q Interest shall be a per annum rate equal to the weighted
average of the Net Mortgage Rates on the Group 3 Mortgage Loans. Each of the
foregoing determinations shall be weighted on the basis of their respective
Scheduled Principal Balances, as of the first day of the related Interest
Accrual Period (after taking into account scheduled payments of principal on
such date).
As of the Closing Date and any date of determination, (i) the
principal balance of the Class L-1B Interest shall equal 0.1% of the Group 0
Xxxxxxxxxxx Xxxxxx, (xx) the principal balance of the Class L-2B Interest shall
equal 0.1% of the Group 2 Subordinate Amount, and (iii) the principal balance of
the Class L-3B Interest shall equal 0.1% of the Group 3 Subordinate Amount (in
each case, computed to eight decimal places).
As of the Closing Date and any date of determination, (i) the
principal balance of the Class L-1Q Interest shall equal the excess of (1) the
aggregate Scheduled Principal Balance of the Group 1 Mortgage Loans over (2) the
principal balance of the Class L-1B Interest, (ii) the principal balance of the
Class L-2Q Interest shall equal the excess of (1) the aggregate Scheduled
Principal Balance of the Group 2 Mortgage Loans over (2) the principal balance
of the Class L-2B Interest and (iii) the principal balance of the Class L-3Q
Interest shall equal the excess of (1) the aggregate Scheduled Principal Balance
of the Group 3 Mortgage Loans (less $50 allocable to the Class A-R Certificate
(in respect of the Class A-LRA Interest) until paid) over (2) the principal
balance of the Class L-3B Interest.
Distributions of principal and allocations of Realized Losses, Fraud
Losses, Special Hazard Losses, Bankruptcy Losses and Excess Losses shall be
made:
(i) first, to the Class L-1B Interest, Class L-2B Interest and Class
L-3B Interest, each from its Related Loan Group, so that their respective
principal balances (computed to eight decimal places) are equal to 0.1% of
the Group 1 Subordinate Amount, 0.1% of the Group 2 Subordinate Amount,
and 0.1% of the Group 3 Subordinate Amount, respectively (except that if
any such amount is a larger number than in the preceding distribution
period, the least amount of principal shall be distributed or losses shall
be allocated to the Class L-1B Interest, Class L-2B Interest and Class
L-3B Interest such that the Lower-Tier Subordinated Balance Ratio is
maintained); and
(ii) second, any remaining principal or losses from the Related Loan
Group shall be distributed or allocated, respectively, to the Class L-1Q
Interest, Class L-2Q Interest and Class L-3Q Interest (less $50 allocable
to the Class A-R Certificate (in respect of the Class A-LRA Interest)
until paid), respectively.
(c) The pass-through rate with respect to the Class 1-A-M1 Interest
shall be a per annum rate equal to the weighted average of the Net Mortgage
Rates on the Group 1 Mortgage Loans; the pass-through rate with respect to the
Class 2-A-M1 Interest shall be a per annum rate equal to the weighted average of
the Net Mortgage Rates on the Group 2 Mortgage Loans; and the pass-through rate
with respect to the Class 3-A-M1 Interest shall be a per annum rate equal to the
weighted average of the Net Mortgage Rate on the Group 3 Mortgage Loans. Each of
the foregoing determinations shall be weighted on the basis of their respective
Scheduled Principal Balances, as of the first day of the related Interest
Accrual Period (after taking into account scheduled payments of principal on
such date).
As of any date, the principal balance of each Middle-Tier REMIC
Regular Interest shall equal the Class Principal Balance of the respective
Corresponding Class or Classes of Certificates. The initial principal balance of
each Middle-Tier REMIC Regular Interest shall equal the initial Class Principal
Balance of the respective Corresponding Class or Classes of Certificates set
forth in the Preliminary Statement. Realized Losses, Fraud Losses, Special
Hazard Losses, Bankruptcy Losses and Excess Losses shall be allocated to the
Middle-Tier REMIC Regular Interests in the same manner as they are allocated to
the Corresponding Class or Classes of Certificates pursuant to Sections 4.02 and
4.03.
(d) The following table sets forth the Lower-Tier REMIC B Interests,
the Lower-Tier REMIC B interest rates, the initial Lower-Tier REMIC B principal
amounts and the Corresponding Upper-Tier REMIC Regular Interest.
CORRESPONDING
LOWER-TIER UPPER-TIER
LOWER-TIER REMIC B REMIC B INITIAL LOWER-TIER REMIC B REMIC REGULAR
CLASS DESIGNATION INTEREST RATE PRINCIPAL AMOUNT INTEREST
----------------- ------------- --------------------------- --------------
Class 4-A1-LB (1) 1/2 initial Corresponding 4-A-1
Upper-Tier REMIC Regular
Interest principal balance
Class 4-M1-LB (1) 1/2 initial Corresponding 4-A-M-1
Upper-Tier REMIC Regular
Interest principal balance
Class 4-M2-LB (1) 1/2 initial Corresponding 4-A-M-2
Upper-Tier REMIC Regular
Interest principal balance
Class 4-B-LB (1) 1/2 initial Corresponding 4-B
Upper-Tier REMIC Regular
Interest principal balance
Class 4-Accrual-LB (1) 1/2 Group 4 Pool Principal N/A
Balance plus1/2
Overcollateralized Amount
Class A-LRB (2) (2) N/A
(1) The interest rate with respect to any Distribution Date for these
interests is a per annum variable rate equal to the Net WAC Rate.
(2) The Class A-LRB Interest is the sole class of residual interest in
Lower-Tier REMIC B and it does not have a principal amount or an interest
rate.
On each Distribution Date, 50% of the increase in the
Overcollateralized Amount will be payable as a reduction of the principal
balances of the Lower-Tier REMIC B Accretion Directed Classes (each such Class
will be reduced by an amount equal to 50% of any increase in the
Overcollateralized Amount that is attributable to a reduction in the principal
balance of its Corresponding Upper-Tier REMIC Regular Interest) and will be
accrued and added to the principal balance of the Class 4-Accrual-LB Interest.
On each Distribution Date, the increase in the principal balance of the Class
4-Accrual-LB Interest may not exceed interest accruals for such Distribution
Date for the Class 4-Accrual-LB Interest. In the event that: (i) 50% of the
increase in the Overcollateralized Amount exceeds (ii) interest accruals on the
Class 4-Accrual-LB Interest for such Distribution Date, the excess for such
Distribution Date (accumulated with all such excesses for all prior Distribution
Dates) will be added to any increase in the Overcollateralized Amount for
purposes of determining the amount of interest accrual on the Class 4-Accrual-LB
Interest payable as principal on the Lower-Tier REMIC B Accretion Directed
Classes on the next Distribution Date pursuant to the first sentence of this
paragraph. All payments of scheduled principal and prepayments of principal
generated by the Group 4 Mortgage Loans shall be allocated (i) 50% to the Class
4-Accrual-LB Interest and (ii) 50% to the Lower-Tier REMIC B Accretion Directed
Classes (principal payments shall be allocated among such Lower-Tier REMIC B
Accretion Directed Classes in an amount equal to 50% of the principal amounts
allocated to its respective Class of Corresponding Upper-Tier REMIC Regular
Interest), until paid in full. Notwithstanding the above, principal payments
allocated to the Class 4-X Certificates that result in the reduction in the
Overcollateralized Amount shall be allocated to the Class 4-Accrual-LB Interest
(until paid in full). Realized Losses shall be applied so that after all
distributions have been made on each Distribution Date (i) the principal balance
of each Lower-Tier REMIC B Accretion Directed Class is equal to 50% of the
principal balance of its Class of Corresponding Upper-Tier REMIC Regular
Interest, and (ii) the Class 4-Accrual-LB Interest is equal to 50% of the
aggregate Scheduled Principal Balance of the Group 4 Mortgage Loans plus 50% of
the Overcollateralized Amount.
(e) For federal income tax purposes, the Pass-Through Rate for the
Class B-M1, Class B-M2, Class B-M3, Class B-M4, Class B-M5 and Class B-M6
Interests for any Distribution Date shall be expressed as a per annum rate equal
to the weighted average of (i) the pass-through rate for the Class L-1B
Interest, (ii) the pass-through rate for the Class L-2B Interest and (iii) the
pass-through rate for the Class L-3B Interest weighted, for each of the
foregoing determinations, on the basis of the respective principal balance of
each such Lower-Tier REMIC A Regular Interest (computed to eight decimal
places), immediately prior to such Distribution Date.
For federal income tax purposes, the Class 1-A-IO Interest shall
represent a "specified portion," within the meaning of the REMIC Provisions of
the interest payments on the Class 1-A-M1 Interest equal to (i) the weighted
average of the Net Mortgage Rates on the Group 1 Mortgage Loans, weighted on the
basis of the respective outstanding Scheduled Principal Balances of the Group 1
Mortgage Loans, as of the first day of the month immediately prior to the month
in which the relevant Distribution Date occurs (after taking into account
scheduled payments of principal on such date), minus (ii) the Pass-Through Rate
for the Class 1-A-1 Certificates for such Distribution Date.
For federal income tax purposes, the Class 2-A-IO Interest shall
represent a "specified portion," within the meaning of the REMIC Provisions of
the interest payments on the Class 2-A-M1 Interest equal to (i) the weighted
average of the Net Mortgage Rates on the Group 2 Mortgage Loans, weighted on the
basis of the respective outstanding Scheduled Principal Balances of the Group 2
Mortgage Loans, as of the first day of the month immediately prior to the month
in which the relevant Distribution Date occurs (after taking into account
scheduled payments of principal on such date), minus (ii) the Pass-Through Rate
for the Class 2-A-1, Class 2-A-2 and Class 2-A-3 Certificates for such
Distribution Date.
For federal income tax purposes, the Class 3-A-IO Interest shall
represent a "specified portion," within the meaning of the REMIC Provisions of
the interest payments on the Class 3-A-M1 Interest equal to (i) the weighted
average of the Net Mortgage Rates on the Group 3 Mortgage Loans, weighted on the
basis of the respective outstanding Scheduled Principal Balances of the Group 3
Mortgage Loans, as of the first day of the month immediately prior to the month
in which the relevant Distribution Date occurs (after taking into account
scheduled payments of principal on such date), minus (ii) the Pass-Through Rate
for the Class 3-A-1 Certificates for such Distribution Date.
For federal income tax purposes, the Class 4-X Interest shall
represent a "specified portion," within the meaning of the REMIC Provisions as
described in the Preliminary Statement and footnote (12) thereto.
Section 2.08. Covenants of the Master Servicer.
The Master Servicer hereby covenants to the Depositor and the
Trustee as follows:
(a) the Master Servicer shall cause each Servicer to perform its
obligations under the applicable Purchase and Servicing Agreement; and
(b) no written information, certificate of an officer, statement
furnished in writing or written report delivered to the Depositor, any affiliate
of the Depositor or the Trustee and prepared by the Master Servicer pursuant to
this Agreement will contain any untrue statement of a material fact or omit to
state a material fact necessary to make such information, certificate, statement
or report not misleading.
Section 2.09. Representations and Warranties of the Master Servicer.
The Master Servicer hereby represents and warrants to the Depositor
and the Trustee, as of the Closing Date, or if so specified herein, as of the
Cut-off Date:
(a) The Master Servicer is duly organized as a corporation and is
validly existing and in good standing under the laws of the United States of
America and is duly authorized and qualified to transact any and all business
contemplated by this Agreement to be conducted by the Master Servicer in any
state in which a Mortgaged Property is located or is otherwise not required
under applicable law to effect such qualification and, in any event, is in
compliance with the doing business laws of any such state, to the extent
necessary to ensure its ability to enforce each Mortgage Loan, to service the
Mortgage Loans in accordance with the terms of this Agreement and to perform any
of its other obligations under this Agreement in accordance with the terms
thereof.
(b) The Master Servicer has the full power and authority to master
service each Mortgage Loan, and to execute, deliver and perform, and to enter
into and consummate the transactions contemplated by this Agreement and has duly
authorized by all necessary action on the part of the Master Servicer the
execution, delivery and performance of this Agreement; and this Agreement,
assuming the due authorization, execution and delivery thereof by the other
parties thereto, constitutes a legal, valid and binding obligation of the Master
Servicer, enforceable against the Master Servicer in accordance with its terms,
except that (a) the enforceability thereof may be limited by bankruptcy,
insolvency, moratorium, receivership and other similar laws relating to
creditors' rights generally and (b) the remedy of specific performance and
injunctive and other forms of equitable relief may be subject to equitable
defenses and to the discretion of the court before which any proceeding therefor
may be brought.
(c) The execution and delivery of this Agreement by the Master
Servicer, and the master servicing of the Mortgage Loans by the Master Servicer
under this Agreement, the consummation of any other of the transactions
contemplated by this Agreement, and the fulfillment of or compliance with the
terms thereof are in the ordinary course of business of the Master Servicer and
will not (A) result in a material breach of any term or provision of the
articles of incorporation or by-laws of the Master Servicer or (B) materially
conflict with, result in a material breach, violation or acceleration of, or
result in a material default under, the terms of any other material agreement or
instrument to which the Master Servicer is a party or by which it may be bound,
or (C) constitute a material violation of any statute, order or regulation
applicable to the Master Servicer of any court, regulatory body, administrative
agency or governmental body having jurisdiction over the Master Servicer; and
the Master Servicer is not in breach or violation of any material indenture or
other material agreement or instrument, or in violation of any statute, order or
regulation of any court, regulatory body, administrative agency or governmental
body having jurisdiction over it which breach or violation may materially impair
the Master Servicer's ability to perform or meet any of its obligations under
this Agreement.
(d) The Master Servicer or an affiliate thereof is an approved
servicer of conventional mortgage loans for Xxxxxx Xxx or Xxxxxxx Mac and is a
mortgagee approved by the Secretary of Housing and Urban Development pursuant to
sections 203 and 211 of the National Housing Act.
(e) No litigation is pending or threatened against the Master
Servicer that would materially and adversely affect the execution, delivery or
enforceability of this Agreement or the ability of the Master Servicer to master
service the Mortgage Loans or to perform any of its other obligations under this
Agreement in accordance with the terms thereof.
(f) No consent, approval, authorization or order of any court or
governmental agency or body is required for the execution, delivery and
performance by the Master Servicer of, or compliance by the Master Servicer
with, this Agreement or the consummation of the transactions contemplated
thereby, or if any such consent, approval, authorization or order is required,
the Master Servicer has obtained the same.
ARTICLE III
ADMINISTRATION AND MASTER SERVICING
OF MORTGAGE LOANS
Section 3.01. Master Servicing of Mortgage Loans.
For and on behalf of the Certificateholders, the Master Servicer
shall supervise, monitor and oversee the obligation of the Servicers to service
and administer their respective Mortgage Loans in accordance with the terms of
the applicable Purchase and Servicing Agreement and shall have full power and
authority to do any and all things which it may deem necessary or desirable in
connection with such master servicing and administration. In performing its
obligations hereunder, the Master Servicer shall act in a manner consistent with
this Agreement and with customary and usual standards of practice of prudent
mortgage loan master servicers. Furthermore, the Master Servicer shall oversee
and consult with each Servicer as necessary from time-to-time to carry out the
Master Servicer's obligations hereunder, shall receive, review and evaluate all
reports, information and other data provided to the Master Servicer by each
Servicer and shall cause each Servicer to perform and observe the covenants,
obligations and conditions to be performed or observed by such Servicer under
the applicable Purchase and Servicing Agreement. The Master Servicer shall
independently and separately monitor each Servicer's servicing activities with
respect to each related Mortgage Loan, reconcile the results of such monitoring
with such information provided in the previous sentence on a monthly basis and
coordinate corrective adjustments to the Servicers' and Master Servicer's
records, and based on such reconciled and corrected information, prepare the
statements specified in Section 4.06 and any other information and statements
required hereunder. The Master Servicer shall reconcile the results of its
Mortgage Loan monitoring with the actual remittances of the Servicers to the
Collection Account pursuant to the applicable Purchase and Servicing Agreements.
In accordance with the standards of the preceding paragraph and to
the extent the related Servicer does not make such advance, the Master Servicer
shall advance or cause to be advanced funds as necessary for the purpose of
effecting the payment of taxes and assessments on the Mortgaged Properties,
which advances shall be reimbursable in the first instance from related
collections from the Mortgagors pursuant to Section 3.07, and further as
provided in Section 3.08. The costs incurred by the Master Servicer, if any, in
effecting the timely payments of taxes and assessments on the Mortgaged
Properties and related insurance premiums shall not, for the purpose of
calculating monthly distributions to the Certificateholders, be added to the
Scheduled Principal Balances of the related Mortgage Loans, notwithstanding that
the terms of such Mortgage Loans so permit.
Section 3.02. Monitoring of Servicers.
(a) The Master Servicer shall be responsible for reporting to the
Trustee and the Depositor the compliance by each Servicer with its duties under
the related Purchase and Servicing Agreement. In the review of each Servicer's
activities, the Master Servicer may rely upon an officer's certificate of the
Servicer with regard to such Servicer's compliance with the terms of its
Purchase and Servicing Agreement. In the event that the Master Servicer, in its
judgment, determines that a Servicer should be terminated in accordance with its
Purchase and Servicing Agreement, or that a notice should be sent pursuant to
such Purchase and Servicing Agreement with respect to the occurrence of an event
that, unless cured, would constitute grounds for such termination, the Master
Servicer shall notify the Depositor and the Trustee thereof and the Master
Servicer shall issue such notice or take such other action as it deems
appropriate.
(b) The Master Servicer, for the benefit of the Trustee and the
Certificateholders, shall enforce the obligations of each Servicer under the
related Purchase and Servicing Agreement, and shall, in the event that a
Servicer fails to perform its obligations in accordance with the related
Purchase and Servicing Agreement, subject to the preceding paragraph, terminate
the rights and obligations of such Servicer thereunder and act as successor
Servicer of the related Mortgage Loans or cause the Trustee to enter into a new
Purchase and Servicing Agreement with a successor Servicer selected by the
Master Servicer; provided, however, it is understood and acknowledged by the
parties hereto that there will be a period of transition (not to exceed 90 days)
before the actual servicing functions can be fully transferred to such successor
Servicer. Such enforcement, including, without limitation, the legal prosecution
of claims, termination of Purchase and Servicing Agreements and the pursuit of
other appropriate remedies, shall be in such form and carried out to such an
extent and at such time as the Master Servicer, in its good faith business
judgment, would require were it the owner of the related Mortgage Loans. The
Master Servicer shall pay the costs of such enforcement at its own expense,
provided that the Master Servicer shall not be required to prosecute or defend
any legal action except to the extent that the Master Servicer shall have
received reasonable indemnity for its costs and expenses in pursuing such
action.
(c) To the extent that the costs and expenses of the Master Servicer
related to any termination of a Servicer, appointment of a successor Servicer or
the transfer and assumption of servicing by the Master Servicer with respect to
any Purchase and Servicing Agreement (including, without limitation, (i) all
legal costs and expenses and all due diligence costs and expenses associated
with an evaluation of the potential termination of the Servicer as a result of
an event of default by such Servicer and (ii) all costs and expenses associated
with the complete transfer of servicing, including all servicing files and all
servicing data and the completion, correction or manipulation of such servicing
data as may be required by the successor servicer to correct any errors or
insufficiencies in the servicing data or otherwise to enable the successor
service to service the Mortgage Loans in accordance with the related Purchase
and Servicing Agreement) are not fully and timely reimbursed by the terminated
Servicer, the Master Servicer shall be entitled to reimbursement of such costs
and expenses from the Collection Account.
(d) The Master Servicer shall require each Servicer to comply with
the remittance requirements and other obligations set forth in the related
Purchase and Servicing Agreement.
(e) If the Master Servicer acts as Servicer, it will not assume
liability for the representations and warranties of the Servicer, if any, that
it replaces.
Section 3.03. [Reserved]
Section 3.04. Rights of the Depositor and the Trustee in Respect of
the Master Servicer.
The Depositor may, but is not obligated to, enforce the obligations
of the Master Servicer hereunder and may, but is not obligated to, perform, or
cause a designee to perform, any defaulted obligation of the Master Servicer
hereunder and in connection with any such defaulted obligation to exercise the
related rights of the Master Servicer hereunder; provided that the Master
Servicer shall not be relieved of any of its obligations hereunder by virtue of
such performance by the Depositor or its designee. Neither the Trustee nor the
Depositor shall have any responsibility or liability for any action or failure
to act by the Master Servicer nor shall the Trustee or the Depositor be
obligated to supervise the performance of the Master Servicer hereunder or
otherwise.
Section 3.05. Trustee to Act as Master Servicer.
In the event that the Master Servicer shall for any reason no longer
be the Master Servicer hereunder (including by reason of a Master Servicer Event
of Termination), the Trustee or its successor shall in accordance with Section
7.02 thereupon assume all of the rights and obligations of the Master Servicer
hereunder arising thereafter (except that the Trustee shall not be (i) liable
for losses of the Master Servicer pursuant to Section 3.09 hereof or any acts or
omissions of the predecessor Master Servicer hereunder), (ii) obligated to make
Advances if it is prohibited from doing so by applicable law, (iii) obligated to
effectuate repurchases or substitutions of Mortgage Loans hereunder including,
but not limited to, repurchases or substitutions of Mortgage Loans pursuant to
Section 2.02 or 2.03 hereof, (iv) responsible for expenses of the Master
Servicer pursuant to Section 2.03 or (v) deemed to have made any representations
and warranties of the Master Servicer pursuant to Section 2.09 hereunder). Any
such assumption shall be subject to Section 7.02 hereof. If the Master Servicer
shall for any reason no longer be the Master Servicer (including by reason of
any Master Servicer Event of Termination), the Trustee or its successor may, but
shall not be obligated to, succeed to any rights and obligations of the Master
Servicer under each subservicing agreement.
The Master Servicer shall, upon request of the Trustee, but at the
expense of the Master Servicer, deliver to the assuming party all documents and
records relating to each subservicing agreement or substitute subservicing
agreement and the Mortgage Loans then being serviced thereunder and an
accounting of amounts collected or held by it and otherwise use its best efforts
to effect the orderly and efficient transfer of the substitute subservicing
agreement to the assuming party.
The Trustee or successor master servicer shall be entitled to be
reimbursed from the Master Servicer for all costs associated with the transfer
of master servicing from the Master Servicer, including, without limitation, any
costs or expenses associated with the complete transfer of all master servicing
data and the completion, correction or manipulation of such master servicing
data as may be required by the Trustee or successor master servicer to correct
any errors or insufficiencies in the master servicing data or otherwise to
enable the Trustee or successor master servicer to master service the Mortgage
Loans properly and effectively.
If the Master Servicer does not pay such reimbursement within thirty
(30) days of its receipt of an invoice therefor, such reimbursement shall be an
expense of the Trust and the Trustee shall be entitled to withdraw such
reimbursement from amounts on deposit in the Distribution Account pursuant to
Section 3.10(b)(iv); provided that the Master Servicer shall reimburse the Trust
for any such expense incurred by the Trust.
Section 3.06. Protected Accounts.
(a) The Master Servicer shall enforce the obligation of each
Servicer to establish and maintain a Protected Account in accordance with the
applicable Purchase and Servicing Agreement, with records to be kept with
respect thereto on a Mortgage Loan by Mortgage Loan basis, into which accounts
shall be deposited within 48 hours (or as of such other time specified in the
related Purchase and Servicing Agreement) of receipt all collections of
principal and interest on any Mortgage Loan and with respect to any REO Property
received by a Servicer, including Principal Prepayments, Insurance Proceeds,
Liquidation Proceeds, and advances made from the Servicer's own funds (less
servicing compensation as permitted by the applicable Purchase and Servicing
Agreement in the case of any Servicer) and all other amounts to be deposited in
the Protected Account. The Master Servicer is hereby authorized to make
withdrawals from and deposits to the related Protected Account for purposes
required or permitted by this Agreement.
(b) In accordance with the terms of the applicable Purchase and
Servicing Agreement, amounts on deposit in a Protected Account may be invested
by the applicable Servicer in investments specified in such Purchase and
Servicing Agreement. The income earned from investments made pursuant to this
Section 3.06 shall be paid to the related Servicer under the applicable Purchase
and Servicing Agreement, and the risk of loss of moneys required to be
distributed to the Certificateholders resulting from such investments shall be
borne by and be the risk of the related Servicer. The related Servicer (to the
extent provided in the Purchase and Servicing Agreement) shall deposit the
amount of any such loss in the Protected Account within two Business Days of
receipt of notification of such loss but not later than the second Business Day
prior to the Distribution Date on which the moneys so invested are required to
be distributed to the Certificateholders.
Section 3.07. Collection of Mortgage Loan Payments; Collection
Account; Distribution Account; Excess Reserve Fund Account.
(a) The Master Servicer shall enforce the obligation of the
Servicers to collect all payments called for under the terms and provisions of
the Mortgage Loans to the extent such procedures shall be consistent with the
Purchase and Servicing Agreements and the terms and provisions of any related
Required Insurance Policy.
(b) The Master Servicer shall establish and maintain a Collection
Account into which the Master Servicer shall deposit or cause to be deposited at
the close of business on the related Servicer Remittance Date, except as
otherwise specifically provided herein, the following payments and collections
remitted by the Servicers, or received by it in respect of Mortgage Loans
subsequent to the Cut-off Date (other than in respect of principal and interest
due on the Mortgage Loans on or before the Cut-off Date) and the following
amounts required to be deposited hereunder:
(i) all payments on account of principal on the Mortgage Loans,
including Principal Prepayments;
(ii) all payments on account of interest on the Mortgage Loans, net
of the related Servicing Fee;
(iii) all Insurance Proceeds and Liquidation Proceeds (including
Insurance Proceeds), other than proceeds to be applied to the restoration
or repair of the Mortgaged Property or released to the Mortgagor in
accordance with the applicable Servicers normal servicing procedures;
(iv) any amount required to be deposited by the Master Servicer
pursuant to Section 3.07(e) in connection with any losses on Permitted
Investments;
(v) any amounts required to be deposited by the Master Servicer
pursuant to Section 3.15(b), 3.15(d), and in respect of net monthly rental
income from REO Property pursuant to Section 3.15 hereof;
(vi) all Substitution Adjustment Amounts;
(vii) all Advances made by the Master Servicer pursuant to Section
4.01;
(viii) Compensating Interest Payments;
(ix) Any amounts deposited in the Collection Account by the Master
Servicer in connection with a deductible clause in any blanket hazard
insurance policy in respect of the Mortgage Loans in such Group;
(x) All proceeds of a primary mortgage guaranty insurance policy in
respect of the Mortgage Loans in such Group; and
(xi) any other amounts required to be deposited hereunder.
In the event that the Master Servicer shall deposit into the
Collection Account any amount not required to be deposited, it may at any time
withdraw such amount from the Collection Account, any provision herein to the
contrary notwithstanding. The Master Servicer shall maintain adequate records
with respect to all withdrawals made pursuant to this Section. All funds
deposited in the Collection Account shall be held in trust for the
Certificateholders until withdrawn in accordance with Section 3.10.
(c) [Reserved]
(d) The Trustee shall establish and maintain, on behalf of the
Certificateholders, the Distribution Account. The Trustee shall, on the
Distribution Account Deposit Date, deposit in the Distribution Account and
retain therein the following:
(i) the aggregate amount remitted by the Master Servicer to the
Trustee pursuant to Section 3.10(ix);
(ii) any amount deposited by the Master Servicer pursuant to Section
3.07(e) in connection with any losses on Permitted Investments; and
(iii) any other amounts described hereunder which are required to be
deposited in the Distribution Account.
In the event that the Master Servicer shall remit any amount not
required to be remitted, it may at any time direct the Trustee to withdraw such
amount from the Distribution Account, any provision herein to the contrary
notwithstanding. Such direction may be accomplished by delivering an Officer's
Certificate to the Trustee which describes the amounts deposited in error in the
Distribution Account. All funds deposited in the Distribution Account shall be
held by the Trustee in trust for the Certificateholders until disbursed in
accordance with this Agreement or withdrawn in accordance with Section 3.10(b).
Funds deposited in the Distribution Account in respect of the Non-Group 4
Mortgage Loans shall be deemed to be assets of Lower-Tier REMIC A until deemed
distributed in respect of the Lower-Tier REMIC A Regular Interests to the
Middle-Tier REMIC and distributed in respect of the Class A-R Certificates
pursuant to Sections 4.02(f), 4.02(g), 4.02(a)(i) and 4.02(a)(iii) and then
shall be deemed to be assets of the Upper-Tier REMIC until distributed in
respect of the Non-Group 4 Certificates in accordance with Section 4.02(a).
Funds deposited in the Distribution Account in respect of the Group 4 Mortgage
Loans shall be deemed to be assets of Lower-Tier REMIC B until deemed
distributed in respect of the Lower-Tier REMIC B Regular Interests to the
Upper-Tier REMIC and distributed in respect of the Class A-R Certificates
pursuant to Sections 4.03(c)(xi) and then shall be deemed to be assets of the
Upper-Tier REMIC until distributed in respect of the Group 4 Certificates in
accordance with Section 4.03. In no event shall the Trustee incur liability for
withdrawals from the Distribution Account at the direction of the Master
Servicer.
(e) Each institution at which the Collection Account or Distribution
Account is maintained shall invest the funds on deposit in the Collection
Account or Distribution Account as directed in writing by the Master Servicer,
in Permitted Investments. Funds invested in the Collection Account shall mature
not later than the Business Day next preceding the related Distribution Account
Deposit Date (except that if such Permitted Investment is an obligation of or is
managed by the institution that maintains such account, then such Permitted
Investment shall mature not later than such Distribution Account Deposit Date).
The Trustee shall invest funds on deposit in the Distribution Account in
Permitted Investments as directed by the Master Servicer which Permitted
Investments shall mature not later than the Business Day next preceding the
Distribution Date (except that if such Permitted Investment is an obligation of
or is managed by the institution that maintains such fund or account, then such
Permitted Investment shall mature not later than such Distribution Date).
Permitted Investments in respect of the Collection Account or the Distribution
Account shall not be sold or disposed of prior to their maturity. All such
Permitted Investments shall be made in the name of the Trustee, for the benefit
of the Certificateholders. All income and gain net of any losses realized from
any such investment of funds on deposit in the Collection Account shall be for
the benefit of the Master Servicer as master servicing compensation and shall be
remitted to it monthly as provided herein. The amount of any realized losses in
the Collection Account incurred in any such account in respect of any such
investments shall promptly be deposited by the Master Servicer in the Collection
Account or paid to the Trustee by wire transfer of immediately available funds
for deposit into the Distribution Account. All income and gain net of any losses
realized from any such investment of funds on deposit in the Distribution
Account shall be for the benefit of the Master Servicer as additional
compensation and shall be remitted to it monthly as provided herein. The amount
of any realized losses in the Distribution Account incurred in any such account
in respect of any such investments shall promptly be deposited by the Master
Servicer in the Distribution Account. The Trustee shall not be liable for the
amount of any loss incurred in respect of any investment or lack of investment
of funds held in the Collection Account (except to the extent the Trustee is the
obligor and has defaulted thereon) or the Distribution Account and made in
accordance with this Section 3.07. In the absence of written instructions by the
Master Servicer to invest funds held in the Collection Account or Distribution
Account, all funds on deposit thereon shall remain uninvested.
(f) The Master Servicer shall give notice to the Trustee, each
Rating Agency and the Depositor of any proposed change of the location of the
Collection Account prior to any change thereof. The Trustee shall give notice to
the Master Servicer, each Rating Agency and the Depositor of any proposed change
of the location of the Distribution Account prior to any change thereof.
(g) The Master Servicer shall account for the Excess Reserve Fund
Account as an asset of the Grantor Trust and not an asset of any Trust REMIC
created pursuant to this Agreement. The beneficial owner of the Excess Reserve
Fund Account is the Class 4-X Certificateholder. For all federal tax purposes,
amounts transferred or reimbursed by any Trust REMIC to the Excess Reserve Fund
Account shall be treated as distributions by the Master Servicer to the Class
4-X Certificateholder in respect of the Class 4-X Interest.
(h) Any Basis Risk Carry Forward Amount paid by the Master Servicer
pursuant to this Section 3.07 to the Group 4 Offered Certificates shall be
accounted for by the Master Servicer as amounts paid first to the Class 4-X
Certificates in respect of the Class 4-X Interest and then to the respective
Class or Classes of Group 4 Offered Certificates. In addition, the Master
Servicer shall account for the Group 4 Offered Certificates' rights to receive
payments of Basis Risk Carry Forward Amount as rights in a limited recourse
interest rate cap contract written by the Class 4-X Certificates in favor of
each such Class of Offered Certificates.
(i) For federal tax return and information reporting, the right of
the Group 4 Offered Certificateholders to receive payments under the Excess
Reserve Fund Account in respect of any Basis Risk Payments shall be assigned a
value of zero.
Section 3.08. Collection of Taxes, Assessments and Similar Items;
Escrow Accounts.
(a) To the extent required by the related Purchase and Servicing
Agreement and by the related Mortgage Note and not violative of current law, the
Master Servicer shall require each Servicer to establish and maintain one or
more accounts (each, an "Escrow Account") and deposit and retain therein all
collections from the Mortgagors (or advances by such Servicer) for the payment
of taxes, assessments, hazard insurance premiums or comparable items for the
account of the Mortgagors. Nothing herein shall require the Master Servicer to
compel a Servicer to establish an Escrow Account in violation of applicable law.
Section 3.09. Access to Certain Documentation and Information
Regarding the Mortgage Loans.
The Master Servicer shall afford and shall require the Servicers to
afford the Depositor and the Trustee reasonable access to all records and
documentation regarding the Mortgage Loans and all accounts, insurance
information and other matters relating to this Agreement or the Purchase and
Servicing Agreement, such access being afforded without charge, but only upon
reasonable request and during normal business hours at the office designated by
the Master Servicer or the applicable Servicer.
Upon reasonable advance notice in writing, the Master Servicer will
provide or shall require the Servicers to provide to each Certificateholder
which is a savings and loan association, bank or insurance company certain
reports and reasonable access to information and documentation regarding the
Mortgage Loans sufficient to permit such Certificateholder to comply with
applicable regulations of the OTS or other regulatory authorities with respect
to investment in the Certificates; provided that the Master Servicer or the
applicable Servicer shall be entitled to be reimbursed by each such
Certificateholder for actual expenses incurred by the Master Servicer or the
applicable Servicer in providing such reports and access.
Section 3.10. Permitted Withdrawals from the Collection Account and
Distribution Account.
(a) The Master Servicer may from time to time make withdrawals from
the Collection Account for the following purposes:
(i) to pay to the Servicers or the Master Servicer, as the case may
be (to the extent not previously retained by the Servicers or the Master
Servicer), the servicing or master compensation, as the case may be, to
which they are entitled pursuant to Section 3.19, and to pay to the Master
Servicer, as additional master servicing compensation, earnings on or
investment income with respect to funds in or credited to the Collection
Account;
(ii) to reimburse the Servicers or the Master Servicer for
unreimbursed Advances made by it, such right of reimbursement pursuant to
this subclause (ii) being limited to amounts received on the Mortgage
Loan(s) in respect of which any such Advance was made;
(iii) to reimburse the Servicers or the Master Servicer for any
Nonrecoverable Advance previously made;
(iv) to reimburse the Servicers or the Master Servicer for Insured
Expenses from the related Insurance Proceeds;
(v) to reimburse the Servicers or the Master Servicer for (a)
unreimbursed Servicing Advances, the Servicers' or the Master Servicer's
right to reimbursement pursuant to this clause (a) with respect to any
Mortgage Loan being limited to amounts received on such Mortgage Loan(s)
which represent late recoveries of the payments for which such advances
were made pursuant to Section 3.01 or Section 3.06 and (b) for unpaid
Servicing Fees as provided in Section 3.15 hereof;
(vi) to pay to the purchaser, with respect to each Mortgage Loan or
property acquired in respect thereof that has been purchased pursuant to
Section 2.02 or 2.03, all amounts received thereon after the date of such
purchase;
(vii) to reimburse the Transferor, the Master Servicer or the
Depositor for expenses or indemnities incurred by any of them and
reimbursable pursuant to Section 6.03 hereof;
(viii) to withdraw any amount deposited in the Collection Account
and not required to be deposited therein;
(ix) on or prior to the Distribution Account Deposit Date, to
withdraw an amount equal to the related Group 1 Available Funds, Group 2
Available Funds and Group 3 Available Funds for such Distribution Date and
remit by wire transfer of immediately available funds such amount to the
Trustee for deposit in the Distribution Account;
(x) to reimburse the Master Servicer for any costs or expenses
incurred by it and reimbursable pursuant to Section 3.02; and
(xi) to clear and terminate the Collection Account upon termination
of this Agreement pursuant to Section 9.01 hereof.
The Master Servicer shall keep and maintain separate accounting, on
a Mortgage Loan by Mortgage Loan basis, for the purpose of justifying any
withdrawal from the Collection Account pursuant to such subclauses (i), (ii),
(iv), (v) and (vi). Prior to making any withdrawal from the Collection Account
pursuant to subclause (iii), the Master Servicer shall deliver to the Trustee an
Officer's Certificate of a Master Servicing Officer indicating the amount of any
previous Advance determined by the Master Servicer to be a Nonrecoverable
Advance and identifying the related Mortgage Loans(s), and their respective
portions of such Nonrecoverable Advance.
(b) The Trustee shall withdraw funds from the Distribution Account
for distributions to Certificateholders, in the manner specified in this
Agreement (and to withhold from the amounts so withdrawn, the amount of any
taxes that it is authorized to withhold pursuant to the last paragraph of
Section 8.11). In addition, the Trustee may from time to time make withdrawals
from the Distribution Account for the following purposes:
(i) [Reserved];
(ii) to pay to the Master Servicer earnings on or investment income
with respect to funds in or credited to the Distribution Account;
(iii) to withdraw and return to the Master Servicer any amount
deposited in the Distribution Account and not required to be deposited
therein;
(iv) to withdraw any indemnity, expense or other reimbursement owed
to it pursuant to this Agreement, including, without limitation, Section
3.05, Section 7.02 and Section 8.05; and
(v) to clear and terminate the Distribution Account upon termination
of the Agreement pursuant to Section 9.01 hereof.
Section 3.11. Maintenance of Hazard Insurance; Maintenance of
Primary Insurance Policies.
(a) For each Mortgage Loan, the Master Servicer shall enforce any
obligation of the Servicers under the related Purchase and Servicing Agreements
to maintain or cause to be maintained standard fire and casualty insurance and,
where applicable, flood insurance, all in accordance with the provisions of the
related Purchase and Servicing Agreements. It is understood and agreed that such
insurance shall be with insurers meeting the eligibility requirements set forth
in the applicable Purchase and Servicing Agreement and that no earthquake or
other additional insurance is to be required of any Mortgagor or to be
maintained on property acquired in respect of a defaulted loan, other than
pursuant to such applicable laws and regulations as shall at any time be in
force and as shall require such additional insurance.
(b) Pursuant to Sections 3.07 and 3.08, any amounts collected by the
Master Servicer, or by any Servicer, under any insurance policies (other than
amounts to be applied to the restoration or repair of the property subject to
the related Mortgage or released to the Mortgagor in accordance with the
applicable Purchase and Servicing Agreement) shall be deposited into the
Collection Account, subject to withdrawal pursuant to Sections 3.07 and 3.08.
Any cost incurred by the Master Servicer or any Servicer in maintaining any such
insurance if the Mortgagor defaults in its obligation to do so shall be added to
the amount owing under the Mortgage Loan where the terms of the Mortgage Loan so
permit; provided, however, that the addition of any such cost shall not be taken
into account for purposes of calculating the distributions to be made to
Certificateholders and shall be recoverable by the Master Servicer or such
Servicer pursuant to Sections 3.07 and 3.08.
Section 3.12. Presentment of Claims and Collection of Proceeds.
The Master Servicer shall (to the extent provided in the applicable
Purchase and Servicing Agreement) cause the related Servicer to, prepare and
present on behalf of the Trustee and the Certificateholders all claims under the
Insurance Policies and take such actions (including the negotiation, settlement,
compromise or enforcement of the insured's claim) as shall be necessary to
realize recovery under such policies. Any proceeds disbursed to the Master
Servicer (or disbursed to a Servicer and remitted to the Master Servicer) in
respect of such policies, bonds or contracts shall be promptly deposited in the
Collection Account upon receipt, except that any amounts realized that are to be
applied to the repair or restoration of the related Mortgaged Property as a
condition precedent to the presentation of claims on the related Mortgage Loan
to the insurer under any applicable Insurance Policy need not be so deposited
(or remitted).
Section 3.13. Maintenance of the Primary Insurance Policies.
(a) The Master Servicer shall not take, or permit any Servicer (to
the extent such action is prohibited under the applicable Purchase and Servicing
Agreement) to take, any action that would result in noncoverage under any
applicable Primary Insurance Policy of any loss which, but for the actions of
such Master Servicer or Servicer, would have been covered thereunder. The Master
Servicer shall use its best reasonable efforts to cause each Servicer (to the
extent required under the related Purchase and Servicing Agreement) to keep in
force and effect (to the extent that the Mortgage Loan requires the Mortgagor to
maintain such insurance), primary mortgage insurance applicable to each Mortgage
Loan in accordance with the provisions of this Agreement and the related
Purchase and Servicing Agreement, as applicable. The Master Servicer shall not,
and shall not permit any Servicer (to the extent required under the related
Purchase and Servicing Agreement) to, cancel or refuse to renew any such Primary
Insurance Policy that is in effect at the date of the initial issuance of the
Mortgage Note and is required to be kept in force hereunder except in accordance
with the provisions of this Agreement and the related Purchase and Servicing
Agreement, as applicable.
(b) The Master Servicer agrees to (i) present, or to cause each
Servicer (to the extent required under the related Purchase and Servicing
Agreement) to present, on behalf of the Trustee and the Certificateholders,
claims to the insurer under any Primary Insurance Policies and, in this regard,
to take such reasonable action as shall be necessary to permit recovery under
any Primary Insurance Policies respecting defaulted Mortgage Loans. Pursuant to
Sections 3.07 and 3.08, any amounts collected by the Master Servicer or any
Servicer under any Primary Mortgage Insurance Policies shall be deposited in the
Collection Account, subject to withdrawal pursuant to Sections 3.07 and 3.08 and
(ii) enforce the obligations of the applicable Servicer under the related
Purchase and Servicing Agreement to effect the timely payment of the premiums on
each Primary Insurance Policy.
Section 3.14. Realization Upon Defaulted Mortgage Loans.
The Master Servicer shall cause each Servicer (to the extent
required under the related Purchase and Servicing Agreement) to foreclose upon,
repossess or otherwise comparably convert the ownership of Mortgaged Properties
securing such of the Mortgage Loans as come into and continue in default and as
to which no satisfactory arrangements can be made for collection of delinquent
payments, all in accordance with the applicable Purchase and Servicing
Agreement.
Section 3.15. REO Property.
(a) In the event the Trust Fund acquires ownership of any REO
Property in respect of any related Mortgage Loan, the deed or certificate of
sale shall be issued to the Trustee, or to its nominee, on behalf of the related
Certificateholders. The Master Servicer shall, to the extent provided in the
applicable Purchase and Servicing Agreement, cause the applicable Servicer to
sell, any REO Property as expeditiously as possible and in accordance with the
provisions of this Agreement and the related Purchase and Servicing Agreement,
as applicable. Pursuant to its efforts to sell such REO Property, the Master
Servicer shall cause the applicable Servicer to protect and conserve, such REO
Property in the manner and to the extent required by the applicable Purchase and
Servicing Agreement, subject to the REMIC Provisions.
(b) The Master Servicer shall, to the extent required by the related
Purchase and Servicing Agreement, cause the applicable Servicer to deposit all
funds collected and received in connection with the operation of any REO
Property in the Protected Account.
(c) The Master Servicer and the applicable Servicer, upon the final
disposition of any REO Property, shall be entitled to reimbursement for any
related unreimbursed Monthly Advances and other unreimbursed advances as well as
any unpaid Servicing Fees from Liquidation Proceeds received in connection with
the final disposition of such REO Property; provided, that any such unreimbursed
Monthly Advances as well as any unpaid Servicing Fees may be reimbursed or paid,
as the case may be, prior to final disposition, out of any net rental income or
other net amounts derived from such REO Property.
(d) The Liquidation Proceeds from the final disposition of the REO
Property, net of any payment to the Master Servicer and the applicable Servicer
as provided above shall be deposited in the Protected Account on or prior to the
Servicer Remittance Date in the month following receipt thereof and be remitted
by wire transfer in immediately available funds to the Master Servicer for
deposit into the related Collection Account.
In the event that the Trust Fund acquires any Mortgaged Property as
aforesaid or otherwise in connection with a default or imminent default on a
Mortgage Loan, the Master Servicer shall enforce the obligation of the related
Servicer to dispose of such Mortgaged Property prior to the close of the third
calendar year after the year in which the Trust Fund acquires such Mortgaged
Property unless the Servicer shall have applied for and received an extension of
such period from the Internal Revenue Service, in which case the Trust Fund may
continue to hold such Mortgaged Property for the period of such extension.
Notwithstanding any other provision of this Agreement, no Mortgaged Property
acquired by the Trust Fund shall be rented (or allowed to continue to be rented)
or otherwise used for the production of income by or on behalf of the Trust Fund
in such a manner or pursuant to any terms that would (i) cause such Mortgaged
Property to fail to qualify as "foreclosure property" within the meaning of
section 860G(a)(8) of the Code or (ii) subject any REMIC hereunder to the
imposition of any federal, state or local income taxes on the income earned from
such Mortgaged Property under Section 860G(c) of the Code or otherwise, unless
the Master Servicer or related Servicer, as applicable, has agreed to indemnify
and hold harmless the Trust Fund with respect to the imposition of any such
taxes.
In the event of a default on a Mortgage Loan one or more of whose
obligor is not a United States Person, as that term is defined in Section
7701(a)(30) of the Code, in connection with any foreclosure or acquisition of a
deed in lieu of foreclosure (together, "foreclosure") in respect of such
Mortgage Loan, the Master Servicer will cause the applicable Servicer to comply
with the provisions of Treasury Regulation Section 1.1445-2(d)(3) (or any
successor thereto) necessary to assure that no withholding tax obligation arises
with respect to the proceeds of such foreclosure except to the extent, if any,
that proceeds of such foreclosure are required to be remitted to the obligors on
such Mortgage Loan.
Section 3.16. Due-on-Sale Clauses; Assumption Agreements.
To the extent provided in the applicable Purchase and Servicing
Agreement, to the extent Mortgage Loans contain enforceable due-on-sale clauses,
the Master Servicer shall cause the Servicers to enforce such clauses in
accordance with the applicable Purchase and Servicing Agreement. If applicable
law prohibits the enforcement of a due-on-sale clause or such clause is
otherwise not enforced in accordance with the applicable Purchase and Servicing
Agreement, and, as a consequence, a Mortgage Loan is assumed, the original
Mortgagor may be released from liability in accordance with the applicable
Purchase and Servicing Agreement.
Section 3.17. Trustee to Cooperate; Release of Mortgage Files.
Upon (i) the payment in full of any Mortgage Loan, or the receipt by
the Master Servicer of a notification that payment in full will be escrowed in a
manner customary for such purposes, or (ii) otherwise in connection with the
servicing of any Mortgage Loan, the Master Servicer will, upon receipt of
notification from the related Servicer pursuant to the applicable Purchase and
Servicing Agreement, release the related Mortgage File to the related Servicer.
Upon notification, the Trustee shall at the Master Servicer's direction execute
and deliver to the Master Servicer the request for reconveyance, deed of
reconveyance or release or satisfaction of mortgage or such instrument releasing
the lien of the Mortgage in each case provided by the Master Servicer, together
with the Mortgage Note with written evidence of cancellation thereon. Expenses
incurred in connection with any instrument of satisfaction or deed of
reconveyance shall be chargeable to the related Mortgagor.
If the Master Servicer or any related Servicer at any time seeks to
initiate a foreclosure proceeding in respect of any Mortgaged Property as
authorized by this Agreement or the Purchase and Servicing Agreement, the Master
Servicer or any related Servicer shall deliver or cause to be delivered to the
Trustee, for signature, as appropriate, any court pleadings, requests for
trustee's sale or other documents necessary to effectuate such foreclosure or
any legal action brought to obtain judgment against the Mortgagor on the
Mortgage Note or the Mortgage or to obtain a deficiency judgment or to enforce
any other remedies or rights provided by the Mortgage Note or the Mortgage or
otherwise available at law or in equity.
Section 3.18. Documents Records and Funds in Possession of Master
Servicer to Be Held for the Trustee.
Notwithstanding any other provisions of this Agreement, the Master
Servicer shall place within the Mortgage File and shall cause each Servicer to
transmit to the Master Servicer as required by this Agreement and the related
Purchase and Servicing Agreement all documents and instruments in respect of a
Mortgage Loan coming into the possession of the Master Servicer or related
Servicer from time to time and shall account fully to the Trustee for any funds
received by the Master Servicer or related Servicer or which otherwise are
collected by the Master Servicer or related Servicer as Liquidation Proceeds or
Insurance Proceeds in respect of any Mortgage Loan. All Mortgage Files and funds
collected or held by, or under the control of, the Master Servicer or related
Servicer in respect of any Mortgage Loans, whether from the collection of
principal and interest payments or from Liquidation Proceeds, including but not
limited to, any funds on deposit in the Collection Account or any Protected
Account, shall be held by the Master Servicer or the related Servicer for and on
behalf of the Trustee and shall be and remain the sole and exclusive property of
the Trustee, subject to the applicable provisions of this Agreement and the
related Purchase and Servicing Agreement. The Master Servicer also agrees that
it shall not create, incur or subject any Mortgage File or any funds that are
deposited in the Collection Account, Distribution Account or any Escrow Account,
or any funds that otherwise are or may become due or payable to the Trustee for
the benefit of the Certificateholders, to any claim, lien, security interest,
judgment, levy, writ of attachment or other encumbrance, or assert by legal
action or otherwise any claim or right of setoff against any Mortgage File or
any funds collected on, or in connection with, a Mortgage Loan, except, however,
that the Master Servicer shall be entitled to set off against and deduct from
any such funds any amounts that are properly due and payable to the Master
Servicer under this Agreement.
Section 3.19. Master Servicing Compensation.
As compensation for its activities hereunder, the Master Servicer
shall be entitled to retain or withdraw from the Collection Account an amount
equal to all investment income gained on amounts held in the Collection Account.
The Trustee will remit to the Master Servicer all investment income earned on
amounts held in the Distribution Account.
Section 3.20. Access to Certain Documentation.
The Master Servicer shall provide and cause each Servicer to provide
in accordance with the related Purchase and Servicing Agreement to the OTS and
the FDIC and to comparable regulatory authorities supervising Holders of Junior
Certificates and the examiners and supervisory agents of the OTS, the FDIC and
such other authorities, access to the documentation regarding the Mortgage Loans
required by applicable regulations of the OTS and the FDIC. Such access shall be
afforded without charge, but only upon reasonable and prior written request and
during normal business hours at the offices designated by the Master Servicer
and the related Servicer. Nothing in this Section shall limit the obligation of
the Master Servicer and the related Servicer to observe any applicable law
prohibiting disclosure of information regarding the Mortgagors and the failure
of the Master Servicer or the related Servicer to provide access as provided in
this Section as a result of such obligation shall not constitute a breach of
this Section. In fulfilling such requests, the Master Servicer shall not be
responsible to determine the sufficiency of such information.
Section 3.21. Annual Statement as to Compliance.
The Master Servicer shall deliver to the Depositor, each Rating
Agency and the Trustee on or before March 15th of each year, commencing with
March 15, 2004, an Officer's Certificate, signed by two officers of the Master
Servicer, stating, as to the signers thereof, that (i) a review of the
activities of the Master Servicer during the preceding calendar year and of the
performance of the Master Servicer under this Agreement has been made under such
officers' supervision and (ii) to the best of such officers' knowledge, based on
such review, the Master Servicer has fulfilled all its obligations under this
Agreement throughout such year, or, if there has been a default in the
fulfillment of any such obligation, specifying each such default known to such
officer and the nature and status thereof. Promptly after receipt of such
Officer's Certificate, the Depositor shall review such Officer's Certificate
and, if applicable, consult with the Master Servicer as to the nature of any
defaults by the Master Servicer in the fulfillment of any of the Master
Servicer's obligations.
Section 3.22. Annual Independent Public Accountants' Servicing
Statement; Financial Statements.
On or before March 15th of each year, commencing with March 15,
2004, if the Master Servicer has, during the course of any fiscal year, directly
serviced any Mortgage Loan, then at its expense shall cause a nationally or
regionally recognized firm of independent public accountants (who may also
render other services to the Master Servicer, the Depositor, the Trustee or any
affiliate thereof) which is a member of the American Institute of Certified
Public Accountants to furnish a statement to the Trustee and the Depositor to
the effect that-such firm has examined certain documents and records relating to
the servicing of the Mortgage Loans under this Agreement or of mortgage loans
under pooling and servicing agreements substantially similar to this Agreement
(such statement to have attached thereto a schedule setting forth the pooling
and servicing agreements covered thereby) and that, on the basis of such
examination, conducted substantially in compliance with the Uniform Single
Attestation Program for Mortgage Bankers or the Audit Program for Mortgages
serviced for Xxxxxx Xxx and Xxxxxxx Mac, such servicing has been conducted in
compliance with such pooling and servicing agreements except for such
significant exceptions or errors in records that, in the opinion of such firm,
the Uniform Single Attestation Program for Mortgage Bankers or the Audit Program
for Mortgages serviced for Xxxxxx Mae and Xxxxxxx Mac requires it to report.
Copies of such statement shall be provided by the Trustee to any
Certificateholder upon request at the Master Servicer's expense, provided such
statement is delivered by the Master Servicer to the Trustee. Promptly after
receipt of such report, the Depositor shall review such report and, if
applicable, consult with the Master Servicer as to the nature of any defaults by
the Master Servicer in the fulfillment of any of the Master Servicer's
obligations.
Section 3.23. Errors and Omissions Insurance; Fidelity Bonds.
The Master Servicer shall for so long as it acts as Master Servicer
under this Agreement, obtain and maintain in force (a) a policy or policies of
insurance covering errors and omissions in the performance of its obligations as
Master Servicer hereunder and (b) a fidelity bond in respect of its officers,
employees and agents. Each such policy or policies shall be in such form and
such amount generally acceptable for entities serving as master servicer. In the
event that any such policy or bond ceases to be in effect, the Master Servicer
shall obtain a comparable replacement policy or bond from an insurer or issuer,
meeting the requirements set forth above as of the date of such replacement.
ARTICLE IV
DISTRIBUTIONS AND SERVICING ADVANCES
Section 4.01. Advances.
The Master Servicer shall deposit in the Collection Account not
later than the Distribution Account Deposit Date immediately preceding the
related Distribution Date an Advance in an amount equal to the difference
between (x) with respect to each Scheduled Payment due on a Mortgage Loan that
is delinquent (other than as a result of a Relief Act Reduction) and for which
the related Servicer was required to make an Advance pursuant to the related
Purchase and Servicing Agreement and (y) amounts deposited in the Collection
Account to be used for Advances with respect to such Mortgage Loan, except to
the extent the Master Servicer determines any such Advance to be a
Nonrecoverable Advance. Subject to the foregoing, the Master Servicer shall
continue to make such Advances for so long as the related Servicer is required
to do so under its Purchase and Servicing Agreement. If applicable, on the
Distribution Account Deposit Date, the Master Servicer shall present an
Officer's Certificate to the Trustee stating that the Master Servicer elects not
to make an Advance in a stated amount and detailing the reason(s) it deems the
Advance to be a Nonrecoverable Advance. Any amounts deposited by the Master
Servicer pursuant to this Section 4.01 shall be net of the Servicing Fee for the
related Mortgage Loans.
Section 4.02. Priorities of Distribution on the Non-Group 4
Certificates.
(a) On each Distribution Date, the Trustee shall withdraw the Group
1 Available Funds, the Group 2 Available Funds and the Group 3 Available Funds
from the Distribution Account and, pursuant to instruction received from the
Master Servicer as set forth in Section 4.06(a), upon which it may conclusively
rely, apply such funds, first, as a deemed distribution in respect of the
Lower-Tier REMIC A Regular Interests, as provided for in Section 4.02(f),
second, as a deemed distribution in respect of the Middle-Tier REMIC Regular
Interests as provided for in Section 4.02(g) and then to distributions on the
Non-Group 4 Certificates in the following order and priority and, in each case,
to the extent of the remaining Group 1 Available Funds, the Group 2 Available
Funds and the Group 3 Available Funds, subject to adjustment in accordance with
Section 4.02(e):
(i) With respect to Class 1-A-1, Class 1-A-IO, Class 2-A-1, Class
2-A-2, Class 2-A-3, Class 2-A-IO, Class 3-A-1, Class 3-A-IO and Class A-R
Certificates:
first,
(A) from the Group 1 Available Funds, to the Class 1-A-1 and
Class 1-A-IO Certificates, pro rata, amounts allocable to interest
on such Classes, equal to the related Accrued Certificate Interests;
(B) from the Group 2 Available Funds, to the Class 2-A-1 Class
2-A-2, Class 2-A-3 and Class 2-A-IO Certificates, pro rata, amounts
allocable to interest on such Classes, equal to the related Accrued
Certificate Interests; and
(C) from the Group 3 Available Funds, to the Class 3-A-1,
Class 3-A-IO and Class A-R Certificates, pro rata, amounts allocable
to interest on such Classes, equal to the related Accrued
Certificate Interests;
in each case ((A) through (C) of this paragraph), any shortfall
shall be allocated among such Classes in proportion to the amount of
the Accrued Certificate Interest that would have been distributed in
the absence of such shortfall;
second,
(A) from the Group 1 Available Funds to the Class 1-A-1
Certificates, on each Distribution Date, the Group 1 Formula
Principal Amount, up to the amount of the Group 1 Optimal Principal
Amount for such Distribution Date, until the Class Principal Balance
of each such Class has been reduced to zero;
(B) to the Class 2-A-1, Class 2-A-2 and Class 2-A-3
Certificates on each Distribution Date, pro rata, the Group 2
Formula Principal Amount, up to the amount of the Group 2 Optimal
Principal Amount for such Distribution Date, until the Class
Principal Balance of each such Class has been reduced to zero; and
(C) sequentially, to the Class A-R (in respect of the Class
A-LRA Interest) and Class 3-A-1 Certificates in that order on each
Distribution Date, the Group 3 Formula Principal Amount, up to the
amount of the Group 3 Optimal Principal Amount for such Distribution
Date until the Class Principal Balance of each such Class has been
reduced to zero;
(ii) to each Class of Non-Group 4 Junior Certificates from the
remaining Group 1 Available Funds, the Group 2 Available Funds and the
Group 3 Available Funds, subject to adjustments in accordance with
Sections 4.02(d) and 4.02(e), in the following order of priority:
(A) to the Class B-1 Certificates, an amount allocable to
interest equal to the Accrued Certificate Interest for such Class
for such Distribution Date;
(B) to the Class B-1 Certificates, an amount allocable to
principal equal to its Allocable Share for such Distribution Date
until the Class Principal Balance thereof is reduced to zero;
(C) to the Class B-2 Certificates, an amount allocable to
interest equal to the Accrued Certificate Interest for such Class
for such Distribution Date;
(D) to the Class B-2 Certificates, an amount allocable to
principal equal to its Allocable Share for such Distribution Date
until the Class Principal Balance thereof is reduced to zero;
(E) to the Class B-3 Certificates, an amount allocable to
interest equal to the amount of the Accrued Certificate Interest for
such Class for such Distribution Date;
(F) to the Class B-3 Certificates, an amount allocable to
principal equal to its Allocable Share for such Distribution Date
until the Class Principal Balance thereof has been reduced to zero;
(G) to the Class B-4 Certificates, an amount allocable to
interest equal to the amount of the Accrued Certificate Interest for
such Class for such Distribution Date;
(H) to the Class B-4 Certificates, an amount allocable to
principal equal to its Allocable Share for such Distribution Date
until the Class Principal Balance thereof has been reduced to zero;
(I) to the Class B-5 Certificates, an amount allocable to
interest equal to the Accrued Certificate Interest for such Class
for such Distribution Date;
(J) to the Class B-5 Certificates, an amount allocable to
principal equal to its Allocable Share for such Distribution Date
until the Class Principal Balance thereof is reduced to zero;
(K) to the Class B-6 Certificates, an amount allocable to
interest equal to the Accrued Certificate Interest for such Class
for such Distribution Date; and
(L) to the Class B-6 Certificates, an amount allocable to
principal equal to its Allocable Share for such Distribution Date
until the Class Principal Balance thereof is reduced to zero; and
(iii) to the Class A-R Certificates, any remaining funds in respect
of the Upper-Tier REMIC (in respect of the Class A-UR Interest), the
Middle-Tier REMIC (in respect of the Class A-MR Interest) and Lower-Tier
REMIC A (in respect of the Class A-LRA Interest).
Pro rata distributions among classes of certificates are required to
be made in proportion to the then-current Certificate Principal Balances of the
classes.
(b) On each Distribution Date on or after the Cross-Over Date,
notwithstanding the allocation and priority set forth in Section 4.02(a)(i) item
second, the portion of the Non-Group 4 Available Funds available to be
distributed as principal to the Class 2-A-1, Class 2-A-2 and Class 2-A-3
Certificates shall be distributed concurrently, as principal, on such Classes,
pro rata, on the basis of their respective Class Principal Balances, until the
Class Principal Balances thereof are reduced to zero; provided, however, that
after the Cross-Over Date, the Class 2-A-3 Certificates will bear the principal
portion of all Realized Losses allocable to the Class 2-A-2 Certificates, other
than Excess Losses, for so long as the Certificate Principal Balance of the
Class 2-A-3 Certificates is greater than zero.
(c) On each Distribution Date, the amount referred to in clause (i)
of the definition of Accrued Certificate Interest for each Class of Non-Group 4
Certificates for such Distribution Date shall be reduced by (i) the related
Class' pro rata share of Net Prepayment Interest Shortfalls based on such Class'
Accrued Certificate Interest for such Distribution Date without taking into
account such Net Prepayment Interest Shortfalls and (ii) the related Class' Pro
Rata Share of (A) after the Special Hazard Coverage Termination Date, with
respect to each Mortgage Loan that became a Special Hazard Mortgage Loan during
the calendar month preceding the month of such Distribution Date, the excess of
one month's interest at the related Net Mortgage Rate on the Scheduled Principal
Balance of such Mortgage Loan as of the Due Date in such month over the amount
of Liquidation Proceeds applied as interest on such Mortgage Loan with respect
to such month, (B) after the Bankruptcy Coverage Termination Date, with respect
to each Mortgage Loan that became subject to a Bankruptcy Loss during the
calendar month preceding the month of such Distribution Date, the interest
portion of the related Debt Service Reduction or Deficient Valuation, (C) each
Relief Act Reduction incurred during the calendar month preceding the month of
such Distribution Date and (D) after the Fraud Loss Coverage Termination Date,
with respect to each Mortgage Loan that became a Fraud Loan during the calendar
month preceding the month of such Distribution Date, the excess of one month's
interest at the related Net Mortgage Rate on the Scheduled Principal Balance of
such Mortgage Loan as of the Due Date in such month over the amount of
Liquidation Proceeds applied as interest on such Mortgage Loan with respect to
such month.
(d) Notwithstanding the priority and allocation contained in Section
4.02(a)(ii) if with respect to any Class of Non-Group 4 Junior Certificates on
any Distribution Date, (i) such Class has not satisfied the Class Prepayment
Distribution Trigger, no distribution of amounts pursuant to clauses (ii) and
(iii) of the definition of Junior Optimal Principal Amount will be made to any
such Classes (the "Restricted Classes") and the amount of such amounts pursuant
to clauses (ii) and (iii) of the definition of Junior Optimal Principal Amount
otherwise distributable to the Restricted Classes shall be distributed to any
Classes of Non-Group 4 Junior Certificates, which are not Restricted Classes,
having lower numerical Class designations than such Class, pro rata, based on
their respective Class Principal Balances immediately prior to such Distribution
Date and shall be distributed in the sequential order provided in Section
4.02(a)(ii); provided, however, that if all of the Non-Group 4 Junior
Certificates are Restricted Classes, then such amounts shall be distributed to
the most senior Class of Non-Group 4 Junior Certificates outstanding and (ii)
such Class has not satisfied the Two Times Test, the Classes of Non-Group 4
Junior Certificates that have higher numerical designations shall receive, in
respect of clauses (ii) and (iii) of the definition of Junior Optimal Principal
Amount, an amount equal to the product of (i) their pro rata shares (based on
the Certificate Principal Balances of all Non-Group 4 Junior Certificates that
are entitled to receive principal distributions on such date) and (ii) the
percentages set forth in the following table:
DISTRIBUTION DATE OCCURRING IN PERCENTAGE
------------------------------ ----------
February 2003 through January 2013.. 0%
February 2013 through January 2014.. 30%
February 2014 through January 2015.. 40%
February 2015 through January 2016.. 60%
February 2016 through January 2017.. 80%
After January 2017.................. 100%
Each Class of Non-Group 4 Junior Certificates that received a full
pro rata share as described above will be allocated any remaining amount in
respect of clauses (ii) and (iii) of the definition of Junior Optimal Principal
Amount, pro rata (based on the Certificate Principal Balances of only those
Non-Group 4 Junior Certificates that received a full pro rata share).
(e) On each Distribution Date, the Trustee shall effect
cross-collateralization among the Certificate Groups (other than Group 4) as
follows:
(i) To the extent any Accrued Certificate Interest with respect to
any Class of Non-Group 4 Senior Certificates remains unpaid after
application of Group Available Funds in accordance with Section 4.02(a)(i)
items first and second, Group Available Funds remaining from all Loan
Groups after payments on Non-Group 4 Senior Certificates in the related
Certificate Groups shall be applied to cover such unpaid Accrued
Certificate Interest, and shall be applied pro rata based on the amounts
of such unpaid Accrued Certificate Interest to the extent there are
insufficient funds to pay such amounts in full. Such amounts shall
otherwise be paid to the Non-Group 4 Senior Certificates within each Loan
Group in accordance with the priorities set forth in Section 4.02(a)(i).
(ii) If on any Distribution Date there exist one or more
Undercollateralized Groups, then all amounts otherwise distributable as
principal on the Non-Group 4 Junior Certificates as the Junior Principal
Distribution Amount shall be paid to the Undercollateralized Groups as
principal to the Non-Group 4 Senior Certificates of such
Undercollateralized Groups in accordance with the priorities set forth in
Section 4.02(a)(i) until the aggregate Certificate Principal Balance of
the Non-Group 4 Senior Certificates of the Undercollateralized Group
equals the Pool Principal Balance of the related Loan Group, applied pro
rata among multiple Undercollateralized Groups based on the amount
undercollateralized after other distributions of principal on such
Distribution Date.
(iii) On or after the date on which the Certificate Principal
Balances of the Non-Group 4 Senior Certificates of a Certificate Group
have been reduced to zero, amounts otherwise distributable as principal on
the Non-Group 4 Junior Certificates, up to the applicable Apportioned
Junior Principal Distribution Amount, shall be paid pro rata as principal
to the remaining Non-Group 4 Senior Certificates of the other Certificate
Groups in accordance with the priorities set forth in Section 4.02(a)(i),
provided that on such Distribution Date (a) the Aggregate Subordinate
Percentage for such Distribution Date is less than twice the initial
Aggregate Subordinate Percentage or (b) the average outstanding principal
balance of the Mortgage Loans in any Loan Group delinquent 60 days or more
over the last six months as a percentage of the related Group Subordinated
Amount is greater than or equal to 50%.
(iv) Any application of the Junior Principal Distribution Amount
pursuant to the preceding paragraphs (ii) and (iii) will reduce
distributions of such amount in reverse order of priority pursuant to
priorities set forth in Section 4.02(a)(ii).
(f) On each Distribution Date, prior to distributions on the
Certificates as provided in Section 4.02(a)-(e), (i) Group 1 Available Funds
(other than amounts paid to the Class A-LR Certificates pursuant to Section
4.02(a)(i)) shall be deemed distributed to the Class LT-1B Interest and Class
LT-1Q Interest, (ii) Group 2 Available Funds shall be deemed distributed to the
Class LT-2B Interest and Class LT-2Q Interest, and (iii) Group 3 Available Funds
shall be deemed distributed to the Class LT-3B Interest and Class LT-3Q
Interest, in each case, with respect to interest, at the related pass through
rate described in Section 2.07(b), and with respect to principal in the amounts
described in Section 2.07(b).
(g) On each Distribution Date, prior to distributions on the
Certificates as provided in Section 4.02(a)-(e), amounts paid in respect of the
Lower-Tier REMIC A Regular Interests pursuant to Section 4.02(f) shall be deemed
distributed to the Middle-Tier REMIC Regular Interests, in each case, with
respect to interest, at the related pass through rate described in Section
2.07(c), and with respect to principal in the amounts described in Section
2.07(c).
Section 4.03. Priorities of Distribution on the Group 4
Certificates.
(a) On each Distribution Date, the Trustee shall, in accordance with
the Monthly Statement for such Distribution Date and from funds on deposit in
the Distribution Account in respect of the Group 4 Mortgage Loans, make (from
deemed distributions in respect of the Lower-Tier REMIC B Regular Interests) the
disbursements and transfers in the following order of priority and to the extent
of the Group 4 Available Funds remaining:
(i) to the Certificateholders of each Class of Group 4 Certificates,
from Group 4 Available Funds in the following order of priority:
(A) to the Class 4-A-1 Certificates, the Accrued Certificate
Interest for that Class;
(B) to the Class 4-A-1 Certificates, the Unpaid Interest Amounts for
that Class;
(C) to the Class 4-M-1 Certificates, the Accrued Certificate
Interest for that Class;
(D) to the Class 4-M-1 Certificates, the Unpaid Interest Amounts for
that Class;
(E) to the Class 4-M-2 Certificates, the Accrued Certificate
Interest for that Class;
(F) to the Class 4-M-2 Certificates, the Unpaid Interest Amounts for
that Class;
(G) to the Class 4-B Certificates, the Accrued Certificate Interest
for that Class; and
(H) to the Class 4-B Certificates, the Unpaid Interest Amounts for
that Class.
(b) (i) On each Distribution Date (x) before the related Stepdown
Date or (y) with respect to which a Trigger Event is in effect, to the
Certificateholders of the Class or Classes of Group 4 Certificates then entitled
to distributions of principal as set forth below, an amount equal to the
Principal Distribution Amount, sequentially to the Class 4-A-1, Class 4-M-1,
Class 4-M-2 and Class 4-B Certificates, in that order, until their respective
Class Certificate Balances are reduced to zero;
(ii) on each Distribution Date (x) on and after the related Stepdown
Date and (y) as long as a Trigger Event is not in effect, to the
Certificateholders of the Class or Classes of Group 4 Certificates then
entitled to distributions of principal an amount equal to the Principal
Distribution Amount in the following amounts and order of priority:
(A) an amount up to the remaining Class 4-A-1 Principal
Distribution Amount, to the Class 4-A-1 Certificates, until the
Class Certificate Balance of such Class has been reduced to zero;
(B) an amount up to the Class 4-M-1 Principal Distribution
Amount, to the Class 4-M-1 Certificates, until the Class Certificate
Balance of such Class has been reduced to zero;
(C) an amount up to the Class 4-M-2 Principal Distribution
Amount, to the Class 4-M-2 Certificates, until the Class Certificate
Balance of such Class has been reduced to zero; and
(D) an amount up to the Class 4-B Principal Distribution
Amount to the Class 4-B Certificates, until the Class Certificate
Balance of such Class has been reduced to zero.
(c) any amount remaining after the distributions in subsections (a)
and (b) above is required to be distributed in the following order of priority
with respect to the Group 4 Certificates:
(i) to the Class 4-A-1 Certificates, any Unpaid Interest Amounts for
such Class;
(ii) to the Class 4-M-1 Certificates, any Unpaid Interest Amounts
for such Class;
(iii) to the Class 4-M-1 Certificates, in an amount up to the
aggregate of any unreimbursed Applied Realized Loss Amounts previously
allocated to that Class, plus interest on those amounts at the
Pass-Through Rate for that Class in effect from time to time, compounded
monthly from the date the related Realized Loss was allocated to such
Class;
(iv) to the Class 4-M-2 Certificates, any Unpaid Interest Amounts
for such Class;
(v) to the Class 4-M-2 Certificates, in an amount up to the
aggregate of any unreimbursed Applied Realized Loss Amounts previously
allocated to that Class, plus interest on those amounts at the
Pass-Through Rate for that Class in effect from time to time, compounded
monthly from the date the related Realized Loss was allocated to such
Class;
(vi) to the Class 4-B Certificates, any Unpaid Interest Amounts for
such Class;
(vii) to the Class 4-B Certificates, in an amount up to the
aggregate of any unreimbursed Applied Realized Loss Amounts previously
allocated to that Class, plus interest on those amounts at the
Pass-Through Rate for that Class in effect from time to time, compounded
monthly from the date the related Realized Loss was allocated to such
Class;
(viii) to the Excess Reserve Fund Account, up to an amount equal to
any Basis Risk Payment for such Distribution Date;
(ix) from funds on deposit in the Excess Reserve Fund Account, an
amount equal to any Basis Risk Carry Forward Amount with respect to the
Group 4 Offered Certificates for such Distribution Date in the same order
and priority in which Accrued Certificate Interest is allocated among
those Classes of Certificates as described in Section 4.03(a);
(x) to the Class 4-X Certificates, the remainder of the Class 4-X
Distributable Amount not distributed pursuant to Sections 4.03(c)(i)-(ix);
and
(xi) the Class A-R Certificates, any remaining amount in respect of
the Upper-Tier REMIC and Lower-Tier REMIC B.
(d) Any amounts distributed to the Group 4 Offered Certificates in
respect of interest pursuant to Sections 4.03(c)(ix) which constitute Basis Risk
Xxxx Forward Amounts shall first be deemed distributed by the Upper-Tier REMIC
as a distribution in respect of the Upper-Tier REMIC and distributed thereby as
a distribution to the Class 4-X Interest in respect of the Upper-Tier REMIC, and
then distributed to the Group 4 Offered Certificates from the Excess Reserve
Fund Account in the Grantor Trust as payments on notional principal contracts in
the nature of interest rate cap contracts.
(e) On each Distribution Date, any Relief Act Interest Shortfalls
and Net Prepayment Interest Shortfalls for such Distribution Date shall be
allocated as a reduction of the Accrued Certificate Interest for the Class
4-A-1, Class 4-M-1, Class 4-M-2 and Class 4-B Certificates pro rata based on the
amount of interest to which such classes would otherwise be entitled.
(f) On each Distribution Date, prior to distributions on the Group 4
Certificates as provided in Section 4.03(a)-(e), Group 4 Available Funds shall
be deemed distributed to the Lower-Tier REMIC B Regular Interests, in each case,
with respect to interest, at the related pass through rate described in Section
2.07(d), and with respect to principal in the amounts described in Section
2.07(d).
Section 4.04. Allocation of Realized Losses on the Non-Group 4
Certificates.
(a) On or prior to each Distribution Date, the Master Servicer shall
determine the total amount of Realized Losses, including Excess Losses.
Realized Losses occurring with respect to Group 1 Mortgage Loans,
Group 2 Mortgage Loans and Group 3 Mortgage Loans with respect to any
Distribution Date shall be allocated as follows:
(i) (1) any Realized Loss, other than an Excess Loss, shall be
allocated first to the Non-Group 4 Junior Certificates in reverse order of
their respective numerical Class designations (beginning with the Class of
Non-Group 4 Junior Certificates then outstanding with the highest
numerical Class designation) until the respective Class Principal Balance
of each such Class is reduced to zero, and second to the Non-Group 4
Senior Certificates (A) with respect to such losses occurring with respect
to Group 2 Mortgage Loans, to the Class 2-A-1, Class 2-A-2 and Class 2-A-3
Certificates, pro rata, based on their respective Certificate Balances,
until each such Class has been reduced to zero; provided, however, that,
after the Cross-Over Date, the losses allocated to the Class 2-A-2
Certificates, under this Section 4(a)(i)(1), will instead be allocated to
the Class 2-A-3 Certificates as long as the Class Principal Balance of the
Class 2-A-3 Certificates has not been reduced to zero and (B) with respect
to such losses occurring with respect to Group 3 Mortgage Loans, to the
Class 3-A-1 and Class A-R Certificates, pro rata, based on their
respective Certificate Balances until each such Class has been reduced to
zero; and
(2) any Excess Losses occurring on the Non-Group 4 Mortgage Loans
shall be allocated among (A) (i) the Class 1-A-1 Certificates (in the case of
Excess Losses on Group 1 Mortgage Loans), (ii) the Class 2-A-1, Class 2-A-2 and
Class 2-A-3 Certificates, pro rata, based on their respective Certificate
Balances (in the case of Excess Losses on Group 2 Mortgage Loans) and (iii) the
Class 3-A-1 and Class A-R Certificates, pro rata, based on their respective
Certificate Balances (in the case of Excess Losses on Group 3 Mortgage Loans)
and (B) each Class of Non-Group 4 Junior Certificates, pro rata based upon their
respective Class Principal Balances (or, in the case of the Non-Group 4 Junior
Certificates in the aggregate, the Group Subordinate Amount for the Loan Group
which incurred the Excess Loss, the aggregate amount so allocated to the
Non-Group 4 Junior Certificates then to be allocated among Non-Group 4 Junior
Certificates pro rata based on their respective Class Principal Balances) after
giving effect to distributions of principal on such Distribution Date.
(b) The Class Principal Balance of the Class of Non-Group 4 Junior
Certificates then outstanding with the highest numerical Class designation shall
be reduced on each Distribution Date by the amount, if any, by which the
aggregate of the Class Principal Balances of all outstanding Classes of
Non-Group 4 Senior Certificates and Non-Group 4 Junior Certificates (after
giving effect to the distribution of principal and the allocation of Realized
Losses on such Distribution Date) exceeds the Non-Group 4 Pool Principal Balance
for the following Distribution Date.
(c) Any Realized Loss allocated to a Class of Certificates or any
reduction in the Class Principal Balance of a Class of Certificates pursuant to
Section 4.04(a) above shall be allocated among the Certificates of such Class in
proportion to their respective Certificate Principal Balances.
(d) Any allocation of Realized Losses to a Certificate or any
reduction in the Certificate Principal Balance of a Certificate, pursuant to
Section 4.04(a) above shall be accomplished by reducing the Certificate
Principal Balance thereof, as applicable, immediately following the
distributions made on the related Distribution Date in accordance with the
definition of "Certificate Principal Balance" herein; provided that no Realized
Loss shall be allocated to reduce the Certificate Principal Balance of a
Certificate to the extent that such allocation would reduce the aggregate
Certificate Principal Balance of all classes of Certificates (for the following
Distribution Date) to an amount less than the Pool Principal Balance for all
Loan Groups, less any Deficiency Valuations occurring before the Bankruptcy Loss
Coverage Termination Date (such limitation, the "Loss Allocation Limitation").
Section 4.05. Allocation of Applied Realized Loss Amounts to the
Group 4 Certificates.
Any Applied Realized Loss Amounts shall be allocated to the Class
4-B, Class 4-M-2 and Class 4-M-1 Certificates, in that order and until the
respective Class Certificate Balances thereof are reduced to zero. No Applied
Realized Loss Amounts shall be allocated to any of the Class 4-A-1 Certificates.
In the event Applied Realized Amounts are allocated to any Class of
Certificates, their Class Certificate Balance shall be permanently reduced by
the amount so allocated and no funds shall be distributed with respect to the
written down amounts or with respect to interest on the written down amounts on
that Distribution Date or any future Distribution Dates, unless funds become
available to make reimbursement payments to such Classes as described in Section
4.03(c).
Section 4.06. Monthly Statements to Certificateholders.
(a) Not later than two Business Days prior to each Distribution
Date, the Master Servicer shall prepare and make available to the Trustee and
not later than each Distribution Date, the Master Servicer shall make available
to each Certificateholder, the Depositor and any other interested parties a
statement based in part on information provided by each Servicer setting forth
the following information with respect to the related distribution (in the case
of information furnished pursuant to (i), (ii) and (vii) below, the amounts
shall be expressed as a dollar amount per minimum denomination Certificate, such
minimum denominations being as set forth in the Preliminary Statement):
(i) the amount thereof allocable to principal, separately
identifying the aggregate amount of any Principal Prepayments and
Liquidation Proceeds included therein;
(ii) the amount thereof allocable to interest, any Class Unpaid
Interest Shortfall included in such distribution and any remaining Class
Unpaid Interest Shortfall after giving effect to such distribution;
(iii) if the distribution to the Holders of such Class of
Certificates is less than the full amount that would be distributable to
such Holders if there were sufficient funds available therefor, the amount
of the shortfall and the allocation thereof as between principal and
interest;
(iv) the Certificate Principal Balance as a dollar amount per
minimum denomination Certificate and the Class Principal Balance of each
Class of Certificates, after giving effect to the distribution of
principal on such Distribution Date;
(v) the Group Pool Principal Balance for each Loan Group on such
Distribution Date;
(vi) the Senior Percentage and Junior Percentage for each Group;
(vii) the Pass-Through Rate for each such Class of Certificates with
respect to such Distribution Date;
(viii) the amount of Advances included in the distribution on such
Distribution Date and the aggregate amount of Advances outstanding as of
the close of business on such Distribution Date;
(ix) the number and aggregate principal amounts of Mortgage Loans
(A) delinquent (exclusive of Mortgage Loans in foreclosure) (1) 1 to 30
days (2) 31 to 60 days (3) 61 to 90 days and (4) 91 or more days and (B)
in foreclosure and delinquent (1) 1 to 30 days (2) 31 to 60 days (3) 61 to
90 days and (4) 91 or more days, as of the close of business on the last
day of the calendar month preceding such Distribution Date;
(x) with respect to any Mortgage Loan that became an REO Property
during the preceding calendar month, the loan number and Scheduled
Principal Balance of such Mortgage Loan as of the close of business on the
last Business Day of the calendar month preceding such Distribution Date
and the date of acquisition thereof;
(xi) the total number and principal balance of any REO Properties
(and market value, if available) as of the close of business on the last
Business Day of the calendar month preceding such Distribution Date;
(xii) the Senior Prepayment Percentage;
(xiii) the aggregate amount of Realized Losses incurred during the
preceding calendar month; and
(xiv) the Special Hazard Loss Coverage Amount, the Fraud Loss
Coverage Amount and the Bankruptcy Loss Coverage Amount, for such
Distribution Date.
Upon receipt from the Master Servicer, the Trustee shall make such
statement available on its website located at xxxx://xxx.xxxxxxxx.xxx/xxxxxx.
Assistance in using the Trustee's website can be obtained by calling
000-000-0000.
(b) The Master Servicer's responsibility for disbursing the above
information to the Trustee, Depositor, Certificateholders and other interested
parties is limited to the availability, timeliness and the accuracy of the
information provided by each Servicer. The Master Servicer will make a copy of
each statement provided pursuant to this Section 4.06 (and, at its option, any
additional files containing the same information in an alternative format)
available each month to Certificateholders and other interested parties, and
other parties to this Agreement via the Master Servicer's internet website
located at "xxx.xxxxxxx.xxx". Assistance in using the internet website can be
obtained by calling the Master Servicer's customer service desk at (301)
815-6600. Parties that are unable to use the above distribution methods are
entitled to have a paper copy mailed to them via first class mail by calling the
Master Servicer's customer service desk and indicating such. The Master
Servicer, with the consent of the Trustee, which consent shall not be
unreasonably withheld, shall have the right to change the way distribution date
statement is distributed in order to make such distribution more convenient
and/or more accessible and the Master Servicer shall provide timely and adequate
notification to the Certificateholders and the parties to this Agreement
regarding any such changes.
The Master Servicer shall also be entitled to rely on but shall not
be responsible for the content or accuracy of any information provided by third
parties for purposes of preparing the Monthly Statement and may affix thereto
any disclaimer it deems appropriate in its reasonable discretion (without
suggesting liability on the part of any other party hereto).
As a condition to access the Master Servicer's internet website, the
Master Servicer may require registration and the acceptance of a disclaimer. The
Master Servicer will not be liable for the dissemination of information in
accordance with this Agreement.
(c) Within a reasonable period of time after the end of each
calendar year, the Trustee shall cause to be furnished upon request to each
Person who at any time during the calendar year was a Certificateholder, a
statement containing the information set forth in clauses (a)(i), (a)(ii) and
(a)(vii) of this Section 4.06 aggregated for such calendar year or applicable
portion thereof during which such Person was a Certificateholder. Such
obligation of the Trustee shall be deemed to have been satisfied to the extent
that substantially comparable information shall be provided by the Trustee
pursuant to any requirements of the Code as from time to time in effect.
Section 4.07. Determination of LIBOR.
On each LIBOR Determination Date for a Class of LIBOR Certificates,
the Master Servicer shall determine LIBOR for the applicable Distribution Date
on the basis of the British Bankers' Association ("BBA") "Interest Settlement
Rate" for one-month deposits in U.S. Dollars as found on Telerate page 3750 as
of 11:00 A.M. London time on such LIBOR Determination Date. As used herein,
"Telerate page 3750" means the display designated as page 3750 on the Bridge
Telerate Service.
If on any LIBOR Determination Date for a Class of LIBOR
Certificates, the Master Servicer is unable to determine LIBOR on the basis of
the method set forth in the preceding paragraph, LIBOR for the applicable
Distribution Date will be whichever is higher of (x) LIBOR as determined on the
previous LIBOR Determination Date for such Class of LIBOR Certificates or (y)
the Reserve Interest Rate. The "Reserve Interest Rate" will be the rate per
annum which the Master Servicer determines to be either (A) the arithmetic mean
(rounding such arithmetic mean upwards if necessary to the nearest whole
multiple of 1/16%) of the one-month U.S. Dollar lending rates that New York City
banks selected by the Master Servicer are quoting, on the relevant LIBOR
Determination Date, to the principal London offices of at least two leading
banks in the London interbank market or (B) in the event that the Master
Servicer can determine no such arithmetic mean, the lowest one-month U.S. Dollar
lending rate that the New York City banks selected by the Master Servicer are
quoting on such LIBOR Determination Date to leading European banks.
If on any LIBOR Determination Date for a Class of LIBOR
Certificates, the Master Servicer is required but is unable to determine the
Reserve Interest Rate in the manner provided in the preceding paragraph, LIBOR
for the applicable Distribution Date will be LIBOR as determined on the previous
LIBOR Determination Date for such Class of LIBOR Certificates, or, in the case
of the first LIBOR Determination Date, the Initial LIBOR Rate.
The establishment of LIBOR by the Master Servicer and the Master
Servicer's subsequent calculation of the rates of interest applicable to each of
the LIBOR Certificates in the absence of manifest error, will be final and
binding. After a LIBOR Determination Date, the Master Servicer shall provide the
Pass-Through Rates of the LIBOR Certificates for the related Distribution Date
to Certificate Owners or Holders of LIBOR Certificates who place a telephone
call to the Master Servicer at 000-000-0000 and make a request therefor.
ARTICLE V
THE CERTIFICATES
Section 5.01. The Certificates.
The Certificates shall be substantially in the forms attached hereto
as exhibits. The Certificates shall be issuable in registered form, in the
minimum denominations, integral multiples in excess thereof (except that one
Certificate in each Class may be issued in a different amount which must be in
excess of the applicable minimum denomination) and aggregate denominations per
Class set forth in the Preliminary Statement.
Subject to Section 9.02 hereof respecting the final distribution on
the Certificates, on each Distribution Date the Trustee shall make distributions
to each Certificateholder of record on the preceding Record Date either (x) by
wire transfer in immediately available funds to the account of such holder at a
bank or other entity having appropriate facilities therefor, if (i) such Holder
has so notified the Trustee in writing at least five Business Days prior to the
related Record Date and (ii) such Holder shall hold (A) a Class 2-A-2
Certificate, (B) 100% of the Class Principal Balance of any Class of
Certificates or (C) Certificates of any Class with aggregate principal
Denominations of not less than $1,000,000 or (y) by check mailed by first class
mail to such Certificateholder at the address of such holder appearing in the
Certificate Register.
The Certificates shall be executed by manual or facsimile signature
on behalf of the Trustee by an authorized officer. Certificates bearing the
manual or facsimile signatures of individuals who were, at the time when such
signatures were affixed, authorized to sign on behalf of the Trustee shall bind
the Trustee, notwithstanding that such individuals or any of them have ceased to
be so authorized prior to the countersignature and delivery of such Certificates
or did not hold such offices at the date of such Certificate. No Certificate
shall be entitled to any benefit under this Agreement, or be valid for any
purpose, unless countersigned by the Trustee by manual signature, and such
countersignature upon any Certificate shall be conclusive evidence, and the only
evidence, that such Certificate has been duly executed and delivered hereunder.
All Certificates shall be dated the date of their countersignature. On the
Closing Date, the Trustee shall countersign the Certificates to be issued at the
direction of the Depositor, or any affiliate thereof.
The Depositor shall provide, or cause to be provided, to the Trustee
on a continuous basis, an adequate inventory of Certificates to facilitate
transfers.
Section 5.02. Certificate Register; Registration of Transfer and
Exchange of Certificates.
(a) The Trustee shall maintain, or cause to be maintained in
accordance with the provisions of Section 5.06 hereof, a Certificate Register
for the Trust Fund in which, subject to the provisions of subsections (b) and
(c) below and to such reasonable regulations as it may prescribe, the Trustee
shall provide for the registration of Certificates and of transfers and
exchanges of Certificates as herein provided. Upon surrender for registration of
transfer of any Certificate, the Trustee shall execute and deliver, in the name
of the designated transferee or transferees, one or more new Certificates of the
same Class and aggregate Percentage Interest.
At the option of a Certificateholder, Certificates may be exchanged
for other Certificates of the same Class in authorized denominations and
evidencing the same aggregate Percentage Interest upon surrender of the
Certificates to be exchanged at the office or agency of the Trustee. Whenever
any Certificates are so surrendered for exchange, the Trustee shall execute,
authenticate, and deliver the Certificates which the Certificateholder making
the exchange is entitled to receive. Every Certificate presented or surrendered
for registration of transfer or exchange shall be accompanied by a written
instrument of transfer in form satisfactory to the Trustee duly executed by the
holder thereof or his attorney duly authorized in writing.
No service charge to the Certificateholders shall be made for any
registration of transfer or exchange of Certificates, but payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any transfer or exchange of Certificates may be required.
All Certificates surrendered for registration of transfer or
exchange shall be canceled and subsequently destroyed by the Trustee in
accordance with the Trustee's customary procedures.
(b) No transfer of a Private Certificate shall be made unless such
transfer is made pursuant to an effective registration statement under the
Securities Act and any applicable state securities laws or is exempt from the
registration requirements under said Act and such state securities laws. In the
event that a transfer is to be made in reliance upon an exemption from the
Securities Act and such laws, in order to assure compliance with the Securities
Act and such laws, the Certificateholder desiring to effect such transfer and
such Certificateholder's prospective transferee (other than the Depositor or an
affiliate of the Depositor) shall each certify to the Trustee in writing the
facts surrounding the transfer in substantially the forms set forth in Exhibit I
(the "Transferor Certificate") and (i) deliver a letter in substantially the
form of either Exhibit J (the "Investment Letter") or Exhibit K (the "Rule 144A
Letter") or (ii) there shall be delivered to the Trustee at the expense of the
transferor an Opinion of Counsel that such transfer may be made pursuant to an
exemption from the Securities Act. The Depositor shall provide to any Holder of
a Private Certificate and any prospective transferee designated by any such
Holder, information regarding the related Certificates and the Mortgage Loans
and such other information as shall be necessary to satisfy the condition to
eligibility set forth in Rule 144A(d)(4) for transfer of any such Certificate
without registration thereof under the Securities Act pursuant to the
registration exemption provided by Rule 144A. The Trustee and the Master
Servicer shall cooperate with the Depositor in providing the Rule 144A
information referenced in the preceding sentence, including providing to the
Depositor, to the extent in its possession, such information regarding the
Certificates, the Mortgage Loans and other matters regarding the Trust Fund as
the Depositor shall reasonably request to meet its obligation under the
preceding sentence. Each Holder of a Private Certificate desiring to effect such
transfer shall, and does hereby agree to, indemnify the Trustee, the Depositor,
and the Master Servicer against any liability that may result if the transfer is
not so exempt or is not made in accordance with such federal and state laws.
No transfer of an ERISA-Restricted Certificate shall be made (other
than to the Depositor or an affiliate of the Depositor) unless the Trustee shall
have received either (i) a representation from the transferee of such
Certificate acceptable to and in form and substance satisfactory to the Trustee
(in the event such Certificate is a Private Certificate, such requirement is
satisfied only by the Trustee's receipt of a representation letter from the
transferee substantially in the form of Exhibit J or Exhibit K), to the effect
that such transferee is not an employee benefit plan or arrangement subject to
Section 406 of ERISA or a plan or arrangement subject to Section 4975 of the
Code, or a plan or arrangement subject to any federal, state or local law
("Similar Law") materially similar to the foregoing provisions of ERISA or the
Code, nor a person acting on behalf of any such plan or arrangement, nor using
the assets of any such plan or arrangement to effect such transfer, (ii) in the
case of an ERISA-Restricted Certificate other than a Residual Certificate, if
the purchaser is an insurance company, a representation that the purchaser is an
insurance company which is purchasing such Certificates with funds contained in
an "insurance company general account" (as such term is defined in Section V(e)
of Prohibited Transaction Class Exemption 95-60 ("PTCE 95-60")) and that the
purchase and holding of such Certificates are covered under PTCE 95-60 or (iii)
in the case of any ERISA-Restricted Certificate other than a Residual
Certificate presented for registration in the name of an employee benefit plan
subject to ERISA, or a plan or arrangement subject to Section 4975 of the Code
or a plan or arrangement subject to Similar Law (or comparable provisions of any
subsequent enactments), or a trustee of any such plan or any other person acting
on behalf of any such plan or arrangement, or using such plan's or arrangement's
assets, an Opinion of Counsel satisfactory to the Trustee, which Opinion of
Counsel shall not be an expense of the Trustee, the Trust Fund or the Depositor,
addressed to the Trustee to the effect that the purchase or holding of such
ERISA-Restricted Certificate will not result in the assets of the Trust Fund
being deemed to be "plan assets" and subject to the prohibited transaction
provisions of ERISA and the Code or similar provisions of Similar Law and will
not subject the Trustee to any obligation in addition to those expressly
undertaken in this Agreement or to any liability. For purposes of the preceding
sentence, with respect to an ERISA-Restricted Certificate that is not a Private
Certificate, in the event the representation letter referred to in the preceding
sentence is not so furnished, such representation shall be deemed to have been
made to the Trustee by the transferee's (including an initial acquirer's)
acceptance of the ERISA-Restricted Certificates. Notwithstanding anything else
to the contrary herein, (a) any purported transfer of an ERISA-Restricted
Certificate, other than a Residual Certificate, to or on behalf of an employee
benefit plan subject to ERISA, the Code or Similar Law without the delivery to
the Trustee of an Opinion of Counsel satisfactory to the Trustee as described
above shall be void and of no effect and (b) any purported transfer of a
Residual Certificate to a transferee that does not make the representation in
clause (i) above shall be void and of no effect.
To the extent permitted under applicable law (including, but not
limited to, ERISA), the Trustee shall be under no liability to any Person for
any registration of transfer of any ERISA-Restricted Certificate that is in fact
not permitted by this Section 5.02(b) or for making any payments due on such
Certificate to the Holder thereof or taking any other action with respect to
such Holder under the provisions of this Agreement so long as the transfer was
registered by the Trustee in accordance with the foregoing requirements.
(c) Each Person who has or who acquires any Ownership Interest in a
Residual Certificate shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the following provisions, and
the rights of each Person acquiring any Ownership Interest in a Residual
Certificate are expressly subject to the following provisions:
(i) Each Person holding or acquiring any Ownership Interest in a
Residual Certificate shall be a Permitted Transferee and shall promptly
notify the Trustee of any change or impending change in its status as a
Permitted Transferee.
(ii) No Ownership Interest in a Residual Certificate may be
registered on the Closing Date or thereafter transferred, and the Trustee
shall not register the Transfer of any Residual Certificate unless, in
addition to the certificates required to be delivered to the Trustee under
subparagraph (b) above, the Trustee shall have been furnished with an
affidavit (a "Transfer Affidavit") of the initial owner or the proposed
transferee (other than the Depositor of an affiliate thereof) in the form
attached hereto as Exhibit H.
(iii) Each Person holding or acquiring any Ownership Interest in a
Residual Certificate shall agree (A) to obtain a Transfer Affidavit from
any other Person to whom such Person attempts to Transfer its Ownership
Interest in a Residual Certificate, (B) to obtain a Transfer Affidavit
from any Person for whom such Person is acting as nominee, trustee or
agent in connection with any Transfer of a Residual Certificate and (C)
not to Transfer its Ownership Interest in a Residual Certificate or to
cause the Transfer of an Ownership Interest in a Residual Certificate to
any other Person if it has actual knowledge that such Person is not a
Permitted Transferee.
(iv) Any attempted or purported Transfer of any Ownership Interest
in a Residual Certificate in violation of the provisions of this Section
5.02(c) shall be absolutely null and void and shall vest no rights in the
purported Transferee. If any purported transferee shall become a Holder of
a Residual Certificate in violation of the provisions of this Section
5.02(c), then the last preceding Permitted Transferee shall be restored to
all rights as Holder thereof retroactive to the date of registration of
Transfer of such Residual Certificate. The Trustee shall be under no
liability to any Person for any registration of Transfer of a Residual
Certificate that is in fact not permitted by Section 5.02(b) and this
Section 5.02(c) or for making any payments due on such Certificate to the
Holder thereof or taking any other action with respect to such Holder
under the provisions of this Agreement so long as the Transfer was
registered after receipt of the related Transfer Affidavit, Transferor
Certificate and either the Rule 144A Letter or the Investment Letter. The
Trustee shall be entitled but not obligated to recover from any Holder of
a Residual Certificate that was in fact not a Permitted Transferee at the
time it became a Holder or, at such subsequent time as it became other
than a Permitted Transferee, all payments made on such Residual
Certificate at and after either such time. Any such payments so recovered
by the Trustee shall be paid and delivered by the Trustee to the last
preceding Permitted Transferee of such Certificate.
(v) The Depositor shall use its best efforts to make available, upon
receipt of written request from the Trustee, all information necessary to
compute any tax imposed under Section 860E(e) of the Code as a result of a
Transfer of an Ownership Interest in a Residual Certificate to any Holder
who is not a Permitted Transferee described in clauses (i) through (iv) of
the definition thereof.
The restrictions on Transfers of a Residual Certificate set forth in
this Section 5.02(c) shall cease to apply (and the applicable portions of the
legend on a Residual Certificate may be deleted) with respect to Transfers
occurring after delivery to the Trustee of an Opinion of Counsel, which Opinion
of Counsel shall not be an expense of the Trust Fund, the Trustee, the
Transferor or the Master Servicer, to the effect that the elimination of such
restrictions will not cause any REMIC hereunder to fail to qualify as a REMIC at
any time that the Certificates are outstanding or result in the imposition of
any tax on the Trust Fund, a Certificateholder or another Person. Each Person
holding or acquiring any Ownership Interest in a Residual Certificate hereby
consents to any amendment of this Agreement which, based on an Opinion of
Counsel furnished to the Trustee, is reasonably necessary (a) to ensure that the
record ownership of, or any beneficial interest in, a Residual Certificate is
not transferred, directly or indirectly, to a Person that is not a Permitted
Transferee and (b) to provide for a means to compel the Transfer of a Residual
Certificate which is held by a Person that is not a Permitted Transferee to a
Holder that is a Permitted Transferee.
(d) The preparation and delivery of all certificates and opinions
referred to above in this Section 5.02 in connection with transfer shall be at
the expense of the parties to such transfers.
(e) Except as provided below, the Book-Entry Certificates shall at
all times remain registered in the name of the Depository or its nominee and at
all times: (i) registration of the Certificates may not be transferred by the
Trustee except to another Depository; (ii) the Depository shall maintain
book-entry records with respect to the Certificate Owners and with respect to
ownership and transfers of such Book-Entry Certificates; (iii) ownership and
transfers of registration of the Book-Entry Certificates on the books of the
Depository shall be governed by applicable rules established by the Depository;
(iv) the Depository may collect its usual and customary fees, charges and
expenses from its Depository Participants; (v) the Trustee shall deal with the
Depository, Depository Participants and indirect participating firms as
representatives of the Certificate Owners of the Book-Entry Certificates for
purposes of exercising the rights of holders under this Agreement, and requests
and directions for and votes of such representatives shall not be deemed to be
inconsistent if they are made with respect to different Certificate Owners; and
(vi) the Trustee may rely and shall be fully protected in relying upon
information furnished by the Depository with respect to its Depository
Participants and furnished by the Depository Participants with respect to
indirect participating firms and persons shown on the books of such indirect
participating firms as direct or indirect Certificate Owners.
All transfers by Certificate Owners of Book-Entry Certificates shall
be made in accordance with the procedures established by the Depository
Participant or brokerage firm representing such Certificate Owner. Each
Depository Participant shall only transfer Book-Entry Certificates of
Certificate Owners it represents or of brokerage firms for which it acts as
agent in accordance with the Depository's normal procedures.
If (x) (i) the Depository or the Depositor advises the Trustee in
writing that the Depository is no longer willing, qualified or able to properly
discharge its responsibilities as Depository, and (ii) the Trustee or the
Depositor is unable to locate a qualified successor, (y) the Depositor with the
consent of the Trustee in writing that it elects to terminate the book-entry
system through the Depository or (z) after the occurrence of a Master Servicer
Event of Termination, Certificate Owners representing at least 51% of the
Certificate Principal Balance of the Book-Entry Certificates together advise the
Trustee and the Depository through the Depository Participants in writing that
the continuation of a book-entry system through the Depository is no longer in
the best interests of the Certificate Owners, the Trustee shall notify all
Certificate Owners, through the Depository, of the occurrence of any such event
and of the availability of definitive, fully-registered Certificates (the
"Definitive Certificates") to Certificate Owners requesting the same. Upon
surrender to the Trustee of the related Class of Certificates by the Depository,
accompanied by the instructions from the Depository for registration, the
Trustee shall issue the Definitive Certificates. Neither the Master Servicer,
the Depositor nor the Trustee shall be liable for any delay in delivery of such
instruction and each may conclusively rely on, and shall be protected in relying
on, such instructions. The Depositor shall provide the Trustee with an adequate
inventory of certificates to facilitate the issuance and transfer of Definitive
Certificates. Upon the issuance of Definitive Certificates all references herein
to obligations imposed upon or to be performed by the Depository shall be deemed
to be imposed upon and performed by the Trustee, to the extent applicable with
respect to such Definitive Certificates and the Trustee shall recognize the
Holders of the Definitive Certificates as Certificateholders hereunder; provided
that the Trustee shall not by virtue of its assumption of such obligations
become liable to any party for any act or failure to act of the Depository.
Section 5.03. Mutilated, Destroyed, Lost or Stolen Certificates.
If (a) any mutilated Certificate is surrendered to the Trustee, or
the Trustee receives evidence to its satisfaction of the destruction, loss or
theft of any Certificate and (b) there is delivered to the Master Servicer and
the Trustee such security or indemnity as may be required by them to save each
of them harmless, then, in the absence of notice to the Trustee that such
Certificate has been acquired by a bona fide purchaser, the Trustee shall
execute, countersign and deliver, in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Certificate, a new Certificate of like
Class, tenor and Percentage Interest. In connection with the issuance of any new
Certificate under this Section 5.03, the Trustee may require the payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in relation thereto and any other expenses (including the fees and expenses of
the Trustee) connected therewith. Any replacement Certificate issued pursuant to
this Section 5.03 shall constitute complete and indefeasible evidence of
ownership, as if originally issued, whether or not the lost, stolen or destroyed
Certificate shall be found at any time.
Section 5.04. Persons Deemed Owners.
The Master Servicer, the Trustee and any agent of the Master
Servicer or the Trustee may treat the Person in whose name any Certificate is
registered as the owner of such Certificate for the purpose of receiving
distributions as provided in this Agreement and for all other purposes
whatsoever, and neither the Master Servicer, the Trustee nor any agent of the
Master Servicer or the Trustee shall be affected by any notice to the contrary.
Section 5.05. Access to List of Certificateholders' Names and
Addresses.
If three or more Certificateholders (a) request such information in
writing from the Trustee, (b) state that such Certificateholders desire to
communicate with other Certificateholders with respect to their rights under
this Agreement or under the Certificates, and (c) provide a copy of the
communication which such Certificateholders propose to transmit, or if the
Depositor or Master Servicer shall request such information in writing from the
Trustee, then the Trustee shall, within ten Business Days after the receipt of
such request, provide the Depositor, the Master Servicer or such
Certificateholders at such recipients' expense the most recent list of the
Certificateholders of such Trust Fund held by the Trustee, if any. The Depositor
and every Certificateholder, by receiving and holding a Certificate, agree that
the Trustee shall not be held accountable by reason of the disclosure of any
such information as to the list of the Certificateholders hereunder, regardless
of the source from which such information was derived.
Section 5.06. Maintenance of Office or Agency.
Certificates may be surrendered for registration of transfer or
exchange at the Corporate Trust Office. The Trustee will give prompt written
notice to the Certificateholders of any change in such location of any such
office or agency.
ARTICLE VI
THE DEPOSITOR AND THE MASTER SERVICER
Section 6.01. Respective Liabilities of the Depositor and the Master
Servicer.
The Depositor and the Master Servicer shall each be liable in
accordance herewith only to the extent of the obligations specifically and
respectively imposed upon and undertaken by them herein.
Section 6.02. Merger or Consolidation of the Depositor or the Master
Servicer.
The Depositor and the Master Servicer will each keep in full effect
its existence, rights and franchises as a corporation or limited partnership, as
the case may be, under the laws of the United States or under the laws of one of
the states thereof and will each obtain and preserve its qualification to do
business as a foreign corporation or legal entity, as the case may be, in each
jurisdiction in which such qualification is or shall be necessary to protect the
validity and enforceability of this Agreement, or any of the Mortgage Loans and
to perform its respective duties under this Agreement.
Any Person into which the Depositor or the Master Servicer may be
merged or consolidated, or any Person resulting from any merger or consolidation
to which the Depositor or the Master Servicer shall be a party, or any person
succeeding to the business of the Depositor or the Master Servicer, shall be the
successor of the Depositor or the Master Servicer, as the case may be,
hereunder, without the execution or filing of any paper or any further act on
the part of any of the parties hereto, anything herein to the contrary
notwithstanding; provided, however, that the successor or surviving Person to
the Master Servicer shall be qualified to service mortgage loans on behalf of,
Xxxxxx Xxx or Xxxxxxx Mac.
Section 6.03. Limitation on Liability of the Depositor, the
Transferor, the Master Servicer and Others.
None of the Depositor, the Transferor, the Master Servicer or any of
the directors, officers, employees or agents of the Depositor, the Transferor or
the Master Servicer shall be under any liability to the Trust for any action
taken or for refraining from the taking of any action in good faith pursuant to
this Agreement, or for errors in judgment; provided, however, that this
provision shall not protect the Depositor, the Transferor, the Master Servicer
or any such Person against any breach of representations or warranties made by
it herein or protect the Depositor, the Transferor, the Master Servicer or any
such Person from any liability which would otherwise be imposed by reasons of
willful misfeasance, bad faith or negligence in the performance of duties or by
reason of reckless disregard of obligations and duties hereunder. The Depositor,
the Transferor, the Master Servicer and any director, officer, employee or agent
of the Depositor, the Transferor or the Master Servicer may rely in good faith
on any document of any kind prima facie properly executed and submitted by any
Person respecting any matters arising hereunder. The Depositor, the Transferor,
the Master Servicer and any director, officer, employee or agent of the
Depositor, the Transferor or the Master Servicer shall be indemnified by the
Trust Fund and held harmless against any loss, liability or expense incurred in
connection with (i) any audit, controversy or judicial proceeding relating to a
governmental taxing authority, (ii) the performance of its duties and
obligations and the exercise of its rights under this Agreement or the
Certificates which constitute "unanticipated expenses incurred by the REMIC"
within the meaning of the REMIC Provisions, or (iii) any legal action relating
to this Agreement or the Certificates, other than any loss, liability or expense
related to any specific Mortgage Loan or Mortgage Loans (except as any such
loss, liability or expense shall be otherwise reimbursable pursuant to this
Agreement) and any loss, liability or expense incurred by reason of willful
misfeasance, bad faith or negligence in the performance of duties hereunder or
by reason of reckless disregard of obligations and duties hereunder. None of the
Depositor, the Transferor or the Master Servicer shall be under any obligation
to appear in, prosecute or defend any legal action that is not incidental to its
respective duties hereunder and which in its opinion may involve it in any
expense or liability; provided, however, that any of the Depositor, the
Transferor or the Master Servicer may in its discretion undertake any such
action that it may deem necessary or desirable in respect of this Agreement and
the rights and duties of the parties hereto and interests of the Trustee and the
Certificateholders hereunder. In such event, the legal expenses and costs of
such action and any liability resulting therefrom shall be expenses, costs and
liabilities of the Trust Fund, and the Depositor, the Transferor and the Master
Servicer shall be entitled to be reimbursed therefor out of the Collection
Account.
Section 6.04. Limitation on Resignation of Master Servicer.
The Master Servicer shall not resign from the obligations and duties
hereby imposed on it (a) upon appointment of a successor master servicer and
receipt by the Trustee of a letter from each Rating Agency that such a
resignation and appointment will not result in a downgrading of the rating of
any of the Certificates, or (b) upon determination that its duties hereunder are
no longer permissible under applicable law or (c) pursuant to Section 6.05. Any
such determination under clause (b) permitting the resignation of the Master
Servicer shall be evidenced by an Opinion of Counsel to such effect delivered to
the Trustee and in form and substance acceptable to the Trustee. No such
resignation shall become effective until the Trustee or a successor master
servicer shall have assumed the Master Servicer's responsibilities, duties,
liabilities and obligations hereunder.
Section 6.05. Sale and Assignment of Master Servicing Rights.
The Master Servicer may sell, assign or delegate its rights, duties
and obligations as Master Servicer under this Agreement in their entirety;
provided, however, that: (i) the purchaser or transferee accepting such sale,
assignment and delegation (a) shall be a Person qualified to servicing mortgage
loans for Xxxxxx Xxx or Xxxxxxx Mac; (b) shall have a net worth of not less than
$50,000,000 (unless otherwise approved by each Rating Agency pursuant to clause
(ii) below); (c) shall be reasonably satisfactory to the Trustee (as evidenced
in a writing signed by Trustee); (d) shall execute and deliver to the Trustee an
agreement, in form and substance reasonably satisfactory to the Trustee, which
contains an assumption by such Person of the due and punctual performance and
observance of each covenant and condition to be performed or observed by it as
master servicer under this Agreement and any custodial agreement from and after
the effective date of such assumption agreement; (ii) each Rating Agency shall
be given prior written notice of the identity of the proposed successor to the
Master Servicer and shall confirm in writing to the Master Servicer and the
Trustee that any such sale, assignment or delegation would not result in a
withdrawal or a downgrading of the rating on any Class of Certificates in effect
immediately prior to such sale, assignment; and (iii) the Master Servicer shall
deliver to the Trustee an Officer's Certificate and an Opinion of Independent
Counsel, each stating that all conditions precedent to such action under this
Agreement have been fulfilled and such action is permitted by and complies with
the terms of this Agreement. No such sale, assignment or delegation shall affect
any liability of the Master Servicer arising prior to the effective date
thereof.
ARTICLE VII
DEFAULT
Section 7.01. Events of Default.
"Master Servicer Event of Termination," wherever used herein, means
any one of the following events:
(i) The Master Servicer fails to cause to be deposited in the
Distribution Account any amount so required to be deposited pursuant to
this Agreement, and such failure continues unremedied for a period of one
Business Day; or
(ii) The Master Servicer fails to observe or perform in any material
respect any other material covenants and agreements set forth in this
Agreement to be performed by it, which covenants and agreements materially
affect the rights of Certificateholders, and such failure continues
unremedied for a period of 60 days after the date on which written notice
of such failure, properly requiring the same to be remedied, shall have
been given to the Master Servicer by the Trustee or to the Master Servicer
and the Trustee by the Holders of Certificates evidencing Voting Rights
aggregating not less than 25% of the Certificates; or
(iii) There is entered against the Master Servicer a decree or order
by a court or agency or supervisory authority having jurisdiction in the
premises for the appointment of a conservator, receiver or liquidator in
any insolvency, readjustment of debt, marshaling of assets and liabilities
or similar proceedings, or for the winding up or liquidation of its
affairs, and the continuance of any such decree or order is unstayed and
in effect for a period of 60 consecutive days, or an involuntary case is
commenced against the Master Servicer under any applicable insolvency or
reorganization statute and the petition is not dismissed within 60 days
after the commencement of the case; or
(iv) The Master Servicer consents to the appointment of a
conservator or receiver or liquidator in any insolvency, readjustment of
debt, marshaling of assets and liabilities or similar proceedings of or
relating to the Master Servicer or substantially all of its property; or
the Master Servicer admits in writing its inability to pay its debts
generally as they become due, files a petition to take advantage of any
applicable insolvency or reorganization statute, makes an assignment for
the benefit of its creditors, or voluntarily suspends payment of its
obligations; or
(v) The Master Servicer assigns or delegates its duties or rights
under this Agreement in contravention of the provisions permitting such
assignment or delegation under Section 6.04.
In each and every such case, so long as such Event of Default with
respect to the Master Servicer shall not have been remedied, either the Trustee
or the Holders of Certificates evidencing Voting Rights aggregating not less
than 25% of the Certificates, by notice in writing to the Master Servicer (and
to the Trustee if given by such Certificateholders), with a copy to the Rating
Agencies, may terminate all of the rights and obligations (but not the
liabilities accruing prior to the date of termination) of the Master Servicer
under this Agreement and in and to the Mortgage Loans and/or the REO Property
serviced by the Master Servicer and the proceeds thereof. Upon the receipt by
the Master Servicer of the written notice, all authority and power of the Master
Servicer under this Agreement, whether with respect to the Certificates, the
Mortgage Loans, the Purchase and Servicing Agreements, REO Property or under any
other related agreements (but only to the extent that such other agreements
relate to the Mortgage Loans or related REO Property) shall, subject to Section
7.02, automatically and without further action pass to and be vested in the
Trustee pursuant to this Section 7.01; and, without limitation, the Trustee is
hereby authorized and empowered to execute and deliver, on behalf of the Master
Servicer as attorney-in-fact or otherwise, any and all documents and other
instruments and to do or accomplish all other acts or things necessary or
appropriate to effect the purposes of such notice of termination, whether to
complete the transfer and endorsement or assignment of the Mortgage Loans and
related documents, or otherwise. The Master Servicer agrees to cooperate with
the Trustee in effecting the termination of the Master Servicer's rights and
obligations hereunder, including, without limitation, the transfer to the
Trustee of (i) the Mortgage Files and all other property and amounts which are
then or should be part of the Trust or which thereafter become part of the
Trust; and (ii) originals or copies of all documents of the Master Servicer
reasonably requested by the Trustee to enable it to assume the Master Servicer's
duties thereunder. In addition to any other amounts which are then, or,
notwithstanding the termination of its activities under this Agreement, may
become payable to the Master Servicer under this Agreement, the Master Servicer
shall be entitled to receive, out of any amount received on account of a
Mortgage Loan or related REO Property, that portion of such payments which it
would have received as reimbursement under this Agreement if notice of
termination had not been given. The termination of the rights and obligations of
the Master Servicer shall not affect any obligations incurred by the Master
Servicer prior to such termination.
Notwithstanding any termination of the activities of the Master
Servicer hereunder, the Master Servicer shall be entitled to receive, out of any
late collection of a Scheduled Payment on a Mortgage Loan which was due prior to
the notice terminating such Master Servicer's rights and obligations as Master
Servicer hereunder and received after such notice, that portion thereof to which
such Master Servicer would have been entitled pursuant to Sections 3.10(a)(i)
through (x), and any other amounts payable to such Master Servicer hereunder the
entitlement to which arose prior to the termination of its activities hereunder.
Section 7.02. Trustee to Act; Appointment of Successor.
On and after the time the Master Servicer receives a notice of
termination pursuant to Section 7.01 hereof, the Trustee shall, subject to and
to the extent provided in Section 3.05, be the successor to the Master Servicer
in its capacity as Master Servicer under this Agreement and the transactions set
forth or provided for herein and shall be subject to all the responsibilities,
duties and liabilities and limitations on liabilities relating thereto placed on
the Master Servicer by the terms and provisions hereof and applicable law
including the obligation to make Advances pursuant to Section 4.01. As
compensation therefor, the Trustee shall be entitled to investment income on all
funds to which the Master Servicer would have been entitled in the Collection
Account or Distribution Account if the Master Servicer had continued to act
hereunder. Notwithstanding the foregoing, if the Trustee has become the
successor to the Master Servicer in accordance with Section 7.01 hereof, the
Trustee may, if it shall be unwilling to so act, or shall, if it is prohibited
by applicable law from making Advances pursuant to Section 4.01 hereof or if it
is otherwise unable to so act, or if it has been requested in writing by Holders
of Certificates evidencing not less than 25% of the Voting Rights evidenced by
the Certificates to do so, appoint, or petition a court of competent
jurisdiction to appoint, any established mortgage loan servicing institution the
appointment of which does not adversely affect the then-current rating of the
Certificates by each Rating Agency as the successor to the Master Servicer
hereunder in the assumption of all or any part of the responsibilities, duties
or liabilities of the Master Servicer hereunder. Any successor to the Master
Servicer shall be an institution which is a Xxxxxx Mae and Xxxxxxx Mac approved
seller/servicer in good standing, which has a net worth of at least $15,000,000,
and which is willing to master service the Mortgage Loans and executes and
delivers to the Depositor and the Trustee an agreement accepting such delegation
and assignment, which contains an assumption by such Person of the rights,
powers, duties, responsibilities, obligations and liabilities of the Master
Servicer (other than liabilities of the Master Servicer under Section 6.03
hereof incurred prior to termination of the Master Servicer under Section 7.01),
with like effect as if originally named as a party to this Agreement; and
provided further that each Rating Agency acknowledges that its rating of the
Certificates in effect immediately prior to such assignment and delegation will
not be qualified or reduced, without regard to the guaranty provided by the
Policies, as a result of such assignment and delegation. Pending appointment of
a successor to the Master Servicer hereunder, the Trustee, unless the Trustee is
prohibited by law from so acting, shall, subject to Section 3.05 hereof, act in
such capacity as hereinabove provided. In connection with such appointment and
assumption, the Trustee may make such arrangements for the compensation of such
successor master servicer out of payments on Mortgage Loans as it and such
successor master servicer shall agree; provided, however, that no such
compensation shall be in excess of the compensation permitted the Master
Servicer hereunder. The Trustee and such successor master servicer shall take
such action, consistent with this Agreement, as shall be necessary to effectuate
any such succession. Neither the Trustee nor any other successor master servicer
shall be deemed to be in default hereunder by reason of any failure to make, or
any delay in making, any distribution hereunder or any portion thereof or any
failure to perform, or any delay in performing, any duties or responsibilities
hereunder, in either case caused by the failure of the Master Servicer to
deliver or provide, or any delay in delivering or providing, any cash,
information, documents or records to it.
Any successor master servicer as Master Servicer shall give notice
to the Servicers of such change of master servicer and shall, during the term of
its service as master servicer maintain in force the policy or policies that the
Master Servicer is required to maintain pursuant to Section 3.11.
The Trustee or successor master servicer shall be entitled to be
reimbursed from the Master Servicer for all costs associated with the transfer
of master servicing from the predecessor master servicer, including, without
limitation, any costs or expenses (including but not limited to personnel time)
associated with the complete transfer of all master servicing data and the
completion, correction or manipulation of such master servicing data as may be
required by the Trustee or successor master servicer to correct any errors or
insufficiencies in the master servicing data or otherwise to enable the Trustee
or successor master servicer to master service the Mortgage Loans properly and
effectively. If the Master Servicer does not pay such reimbursement within
thirty (30) days of its receipt of an invoice therefor, such reimbursement shall
be an expense of the Trust and the Trustee shall be entitled to withdraw such
reimbursement from amounts on deposit in the Distribution Account pursuant to
Section 3.10(b)(iv); provided that the Master Servicer shall reimburse the Trust
for any such expense incurred by the Trust.
Section 7.03. Notification to Certificateholders.
(a) Upon any termination of or appointment of a successor to the
Master Servicer, the Trustee shall give prompt written notice thereof to
Certificateholders and to each Rating Agency.
(b) Within 60 days after the occurrence of any Master Servicer Event
of Termination, the Trustee shall transmit by mail to all Certificateholders
notice of each such Master Servicer Event of Termination hereunder known to the
Trustee, unless such Master Servicer Event of Termination shall have been cured
or waived.
ARTICLE VIII
CONCERNING THE TRUSTEE AND THE MASTER SERVICER
Section 8.01. Duties of Trustee.
The Trustee, prior to the occurrence of a Master Servicer Event of
Termination and after the curing or waiver of all Master Servicer Events of
Termination that may have occurred, shall undertake to perform such duties and
only such duties as are specifically set forth in this Agreement. In case a
Master Servicer Event of Termination has occurred and remains uncured or
unwaived, the Trustee shall exercise such of the rights and powers vested in it
by this Agreement, and use the same degree of care and skill in their exercise
as a prudent person would exercise or use under the circumstances in the conduct
of such person's own affairs.
The Trustee, upon receipt of all resolutions, certificates,
statements, opinions, reports, documents, orders or other instruments furnished
to the Trustee that are specifically required to be furnished pursuant to any
provision of this Agreement shall examine them to determine whether they are in
the form required by this Agreement; provided, however, that the Trustee shall
not be responsible for the accuracy or content of any such resolution,
certificate, statement, opinion, report, document, order or other instrument. If
any such instrument is found not to conform in any material respect to the
requirements of this Agreement, the Trustee shall notify the Certificateholders
of such non-conforming instrument in the event the Trustee, after so requesting,
does not receive a satisfactorily corrected instrument.
No provision of this Agreement shall be construed to relieve the
Trustee from liability for its own negligent action, its own negligent failure
to act or its own willful misconduct; provided, however, that:
(i) unless a Master Servicer Event of Termination has occurred, the
Trustee has actual knowledge of shall have occurred and be continuing, the
duties and obligations of the Trustee shall be determined solely by the
express provisions of this Agreement, the Trustee shall not be liable
except for the performance of such duties and obligations as are
specifically set forth in this Agreement, no implied covenants or
obligations shall be read into this Agreement against the Trustee and the
Trustee may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon any certificates or
opinions furnished to the Trustee and conforming to the requirements of
this Agreement which it believed in good faith to be genuine and to have
been duly executed by the proper authorities respecting any matters
arising hereunder;
(ii) the Trustee shall not be liable for an error of judgment made
in good faith by a Responsible Officer or Responsible Officers of the
Trustee, unless it shall be finally proven that the Trustee was negligent
in ascertaining the pertinent facts;
(iii) the Trustee shall not be liable with respect to any action
taken, suffered or omitted to be taken by it in good faith in accordance
with the direction of Holders of Certificates evidencing not less than 25%
of the Voting Rights of Certificates relating to the time, method and
place of conducting any proceeding for any remedy available to the
Trustee, or exercising or omitting to exercise any trust or power
conferred upon the Trustee under this Agreement; and
(iv) Subject to Section 7.02, the Trustee shall not be accountable,
shall have no liability and makes no representation as to any acts or
omissions hereunder of the Master Servicer until such time as the Trustee
may be required to act as Master Servicer pursuant to Section 7.02 and
thereupon only for the acts or omissions of the Trustee as successor
Master Servicer.
Section 8.02. Certain Matters Affecting the Trustee.
Except as otherwise provided in Section 8.01:
(i) the Trustee may request and rely upon and shall be protected in
acting or refraining from acting upon any resolution, Officers'
Certificate, certificate of auditors or any other certificate, statement,
instrument, opinion, report, notice, request, consent, order, appraisal,
bond or other paper or document believed by it to be genuine and to have
been signed or presented by the proper party or parties and the Trustee
shall have no responsibility to ascertain or confirm the genuineness of
any signature of any such party or parties;
(ii) the Trustee may consult with counsel, financial advisers or
accountants and the advice of any such counsel, financial advisers or
accountants and any advice or Opinion of Counsel shall be full and
complete authorization and protection in respect of any action taken or
suffered or omitted by it hereunder in good faith and in accordance with
such advice or Opinion of Counsel;
(iii) the Trustee shall not be liable for any action taken, suffered
or omitted by it in good faith and believed by it to be authorized or
within the discretion or rights or powers conferred upon it by this
Agreement;
(iv) prior to the occurrence of a Master Servicer Event of
Termination and after the curing or waiver of all Master Servicer Events
of Termination which may have occurred, the Trustee shall not be bound to
make any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request,
consent, order, approval, bond or other paper or document, unless
requested in writing so to do by Holders of Certificates evidencing not
less than 25% of the Voting Rights allocated to each Class of
Certificates; provided, however, that if the payment within a reasonable
time to the Trustee of the costs, expenses or liabilities likely to be
incurred by it in the making of such investigation is, in the opinion of
the Trustee, not reasonably assured to the Trustee by the security
afforded to it by the terms of this Agreement, the Trustee may require
reasonable indemnity against such expense or liability as a condition to
so proceeding. The reasonable expense of every such examination shall be
paid by the Master Servicer or, if paid by the Trustee, shall be
reimbursed by the Master Servicer upon demand. Nothing in this clause (iv)
shall derogate from the obligation of the Master Servicer to observe any
applicable law prohibiting disclosure of information regarding the
Mortgagors;
(v) the Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents or
attorneys or a custodian and the Trustee shall not be responsible for any
misconduct or negligence on the part of any such agent, attorney or
custodian appointed by the Trustee with due care;
(vi) the Trustee shall not be required to risk or expend its own
funds or otherwise incur any financial liability in the performance of any
of its duties or in the exercise of any of its rights or powers hereunder
if it shall have reasonable grounds for believing that repayment of such
funds or adequate indemnity against such risk or liability is not assured
to it, and none of the provisions contained in this Agreement shall in any
event require the Trustee to perform, or be responsible for the manner of
performance of, any of the obligations of the Master Servicer under this
Agreement, except during such time, if any, as the Trustee shall be the
successor to, and be vested with the rights, duties, powers and privileges
of, the Master Servicer in accordance with the terms of this Agreement;
(vii) the Trustee shall not be liable for any loss on any investment
of funds pursuant to this Agreement (other than as issuer of the
investment security);
(viii) the Trustee shall not be deemed to have knowledge of a Master
Servicer Event of Termination until a Responsible Officer of the Trustee
obtains actual knowledge of such failure or the Trustee receives written
notice of such failure from the Master Servicer or the holders of
Certificates evidencing not less than 25% of the Voting Rights of
Certificates. In the absence of such receipt of such notice, the Trustee
may conclusively assume that there is no Master Servicer Event of
Termination; and
(ix) the Trustee shall be under no obligation to exercise any of the
trusts, rights or powers vested in it by this Agreement or to institute,
conduct or defend any litigation hereunder or in relation hereto at the
request, order or direction of any of the Certificateholders, pursuant to
the provisions of this Agreement, unless such Certificateholders shall
have offered to the Trustee reasonable security or indemnity satisfactory
to the Trustee against the costs, expenses and liabilities which may be
incurred therein or thereby.
The Trustee shall have no duty (A) to see to any recording, filing,
or depositing of this Agreement or any agreement referred to herein or any
financing statement or continuation statement evidencing a security interest, or
to see to the maintenance of any such recording or filing or depositing or to
any rerecording, refiling or redepositing of any thereof, (B) to see to any
insurance or (C) to see to the payment or discharge of any tax, assessment, or
other governmental charge or any lien or encumbrance of any kind owing with
respect to, assessed or levied against, any part of the Trust Fund other than
from funds available in the Distribution Account.
Section 8.03. Trustee Not Liable for Certificates or Mortgage Loans.
The recitals contained herein and in the Certificates shall be taken
as the statements of the Depositor or the Transferor, as the case may be, and
the Trustee assumes no responsibility for their correctness. The Trustee makes
no representations as to the validity or sufficiency of this Agreement or of the
Certificates or of any Mortgage Loan or related document other than with respect
to the Trustee's execution and counter-signature of the Certificates. The
Trustee shall not be accountable for the use or application by the Depositor or
the Master Servicer of any funds paid to the Depositor or the Master Servicer in
respect of the Mortgage Loans or deposited in or withdrawn from the Collection
Account by the Depositor or the Master Servicer.
Section 8.04. Trustee May Own Certificates.
The Trustee in its individual or any other capacity may become the
owner or pledgee of Certificates and may transact business with the parties
hereto and their Affiliates with the same rights as it would have if it were not
the Trustee.
Section 8.05. Trustee's Fees and Expenses.
The Trustee shall be compensated as separately agreed with the
Master Servicer. The Trustee and any director, officer, employee, agent or
"control person" within the meaning of the Securities Act of 1933, as amended,
and the Securities Exchange of 1934, as amended ("Control Person") of the
Trustee shall be indemnified by the Trust and held harmless against any loss,
liability or expense (including reasonable attorney's fees) (i) incurred in
connection with any claim or legal action relating to (a) this Agreement or (b)
the Certificates, (ii) incurred in connection with the performance of any of the
Trustee's duties hereunder, other than any loss, liability or expense (x)
incurred by reason of willful misfeasance, bad faith or negligence in the
performance of any of the Trustee's duties hereunder, (y) incurred by reason of
any action of the Trustee taken at the direction of the Certificateholders, or
(z) which would not constitute an "unanticipated expense incurred by the REMIC"
within the meaning of Treasury Regulations Section 1.860G-1(b)(3)(ii) and (iii)
resulting from any error in any tax or information return prepared by the Master
Servicer. Such indemnity shall survive the termination of this Agreement or the
resignation or removal of the Trustee hereunder. Without limiting the foregoing,
and except for any such expense, disbursement or advance as may arise from the
Trustee's negligence, bad faith or willful misconduct, or which would not be an
"unanticipated expense" within the meaning of the second preceding sentence, the
Trustee shall be reimbursed by the Trust for all reasonable expenses,
disbursements and advances incurred or made by the Trustee in accordance with
any of the provisions of this Agreement with respect to: (A) the reasonable
compensation and the expenses and disbursements of its counsel not associated
with the closing of the issuance of the Certificates, (B) the reasonable
compensation, expenses and disbursements of any accountant, engineer, appraiser
or other agent that is not regularly employed by the Trustee, to the extent that
the Trustee must engage such Persons to perform acts or services hereunder and
(C) printing and engraving expenses in connection with preparing any Definitive
Certificates. The Trust shall fulfill its obligations under this paragraph from
amounts on deposit from time to time in the Distribution Account.
Section 8.06. Eligibility Requirements for Trustee.
The Trustee hereunder shall at all times be a corporation or
association organized and doing business under the laws of a state or the United
States of America, authorized under such laws to exercise corporate trust
powers, having a combined capital and surplus of at least $50,000,000, subject
to supervision or examination by federal or state authority and with a credit
rating of at least investment grade. If such corporation or association
publishes reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for the
purposes of this Section 8.06 the combined capital and surplus of such
corporation or association shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. In
case at any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section 8.06, the Trustee shall resign immediately in the
manner and with the effect specified in Section 8.07 hereof. The entity serving
as Trustee may have normal banking and trust relationships with the Depositor
and its affiliates or the Master Servicer and its affiliates; provided, however,
that such entity cannot be an affiliate of the Master Servicer other than the
Trustee in its role as successor to the Master Servicer.
Section 8.07. Resignation and Removal of Trustee.
The Trustee may at any time resign and be discharged from the trusts
hereby created by giving written notice of resignation to the Depositor and the
Master Servicer and each Rating Agency not less than 60 days before the date
specified in such notice when, subject to Section 8.08, such resignation is to
take effect, and acceptance by a successor trustee in accordance with Section
8.08 meeting the qualifications set forth in Section 8.06. If no successor
trustee meeting such qualifications shall have been so appointed and have
accepted appointment within 30 days after the giving of such notice or
resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor trustee.
If at any time the Trustee shall cease to be eligible in accordance
with the provisions of Section 8.06 hereof and shall fail to resign after
written request thereto by the Depositor, or if at any time the Trustee shall
become incapable of acting, or shall be adjudged as bankrupt or insolvent, or a
receiver of the Trustee or of its property shall be appointed, or any public
officer shall take charge or control of the Trustee or of its property or
affairs for the purpose of rehabilitation, conservation or liquidation, or a tax
is imposed with respect to the Trust Fund by any state in which the Trustee or
the Trust Fund is located and the imposition of such tax would be avoided by the
appointment of a different trustee, then the Depositor or the Master Servicer
may remove the Trustee and appoint a successor trustee by written instrument, in
triplicate, one copy of which instrument shall be delivered to the Trustee, one
copy of which shall be delivered to the Master Servicer and one copy to the
successor trustee.
The Holders of Certificates entitled to at least 51% of the Voting
Rights may at any time remove the Trustee and appoint a successor trustee by
written instrument or instruments, in triplicate, signed by such Holders or
their attorneys-in-fact duly authorized, one complete set of which instruments
shall be delivered by the successor Trustee to the Master Servicer, one complete
set to the Trustee so removed and one complete set to the successor so
appointed. Notice of any removal of the Trustee shall be given to each Rating
Agency by the Successor Trustee.
Any resignation or removal of the Trustee and appointment of a
successor trustee pursuant to any of the provisions of this Section 8.07 shall
become effective upon acceptance of appointment by the successor trustee as
provided in Section 8.08 hereof.
Section 8.08. Successor Trustee.
Any successor trustee appointed as provided in Section 8.07 hereof
shall execute, acknowledge and deliver to the Depositor and to its predecessor
trustee and the Master Servicer an instrument accepting such appointment
hereunder and thereupon the resignation or removal of the predecessor trustee
shall become effective and such successor trustee, without any further act, deed
or conveyance, shall become fully vested with all the rights, powers, duties and
obligations of its predecessor hereunder, with the like effect as if originally
named as trustee herein. The Depositor, the Master Servicer and the predecessor
trustee shall execute and deliver such instruments and do such other things as
may reasonably be required for more fully and certainly vesting and confirming
in the successor trustee all such rights, powers, duties, and obligations.
No successor trustee shall accept appointment as provided in this
Section 8.08 unless at the time of such acceptance such successor trustee shall
be eligible under the provisions of Section 8.06 hereof and its appointment
shall not adversely affect the then-current rating of the Certificates.
Upon acceptance of appointment by a successor trustee as provided in
this Section 8.08, the Depositor shall mail notice of the succession of such
trustee hereunder to all Holders of Certificates. If the Depositor fails to mail
such notice within 10 days after acceptance of appointment by the successor
trustee, the successor trustee shall cause such notice to be mailed at the
expense of the Depositor.
Section 8.09. Merger or Consolidation of Trustee.
Any corporation or other entity into which the Trustee may be merged
or converted or with which it may be consolidated or any corporation or other
entity resulting from any merger, conversion or consolidation to which the
Trustee shall be a party, or any corporation or other entity succeeding to the
business of the Trustee, shall be the successor of the Trustee hereunder,
provided that such corporation or other entity shall be eligible under the
provisions of Section 8.06 hereof without the execution or filing of any paper
or further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding.
Section 8.10. Appointment of Co-Trustee or Separate Trustee.
Notwithstanding any other provisions of this Agreement, at any time,
for the purpose of meeting any legal requirements of any jurisdiction in which
any part of the Trust Fund or property securing any Mortgage Note may at the
time be located, the Master Servicer and the Trustee acting jointly shall have
the power and shall execute and deliver all instruments to appoint one or more
Persons approved by the Trustee to act as co-trustee or co-trustees jointly with
the Trustee, or separate trustee or separate trustees, of all or any part of the
Trust Fund, and to vest in such Person or Persons, in such capacity and for the
benefit of the Certificateholders, such title to the Trust Fund or any part
thereof, whichever is applicable, and, subject to the other provisions of this
Section 8.10, such powers, duties, obligations, rights and trusts as the Master
Servicer and the Trustee may consider necessary or desirable. If the Master
Servicer shall not have joined in such appointment within 15 days after the
receipt by it of a request to do so, or in the case a Master Servicer Event of
Termination shall have occurred and be continuing, the Trustee alone shall have
the power to make such appointment. No co-trustee or separate trustee hereunder
shall be required to meet the terms of eligibility as a successor trustee under
Section 8.06 and no notice to Certificateholders of the appointment of any
co-trustee or separate trustee shall be required under Section 8.08.
Every separate trustee and co-trustee shall, to the extent permitted
by law, be appointed and act subject to the following provisions and conditions:
(i) To the extent necessary to effectuate the purposes of this
Section 8.10, all rights, powers, duties and obligations conferred or
imposed upon the Trustee, except for the obligation of the Trustee under
this Agreement to advance funds on behalf of the Master Servicer, shall be
conferred or imposed upon and exercised or performed by the Trustee (as
successor master servicer) and such separate trustee or co-trustee jointly
(it being understood that such separate trustee or co-trustee is not
authorized to act separately without the Trustee joining in such act),
except to the extent that under any law of any jurisdiction in which any
particular act or acts are to be performed (whether as Trustee hereunder
or as successor to the Master Servicer hereunder), the Trustee shall be
incompetent or unqualified to perform such act or acts, in which event
such rights, powers, duties and obligations (including the holding of
title to the applicable Trust Fund or any portion thereof in any such
jurisdiction) shall be exercised and performed singly by such separate
trustee or co-trustee, but solely at the direction of the Trustee;
(ii) No trustee hereunder shall be held personally liable by reason
of any act or omission of any other trustee hereunder and such appointment
shall not, and shall not be deemed to, constitute any such separate
trustee or co-trustee as agent of the Trustee; and
(iii) The Trustee may at any time accept the resignation of or
remove any separate trustee or co-trustee.
Any notice, request or other writing given to the Trustee shall be
deemed to have been given to each of the separate trustees and co-trustees, when
and as effectively as if given to each of them. Every instrument appointing any
separate trustee or co-trustee shall refer to this Agreement and the conditions
of this Article VIII. Each separate trustee and co-trustee, upon its acceptance
of the trusts conferred, shall be vested with the estates or property specified
in its instrument of appointment, either jointly with the Trustee or separately,
as may be provided therein, subject to all the provisions of this Agreement,
specifically including every provision of this Agreement relating to the conduct
of, affecting the liability of, or affording protection to, the Trustee. Every
such instrument shall be filed with the Trustee and a copy thereof given to the
Master Servicer and the Depositor.
Any separate trustee or co-trustee may, at any time, constitute the
Trustee its agent or attorney-in-fact, with full power and authority, to the
extent not prohibited by law, to do any lawful act under or in respect of this
Agreement on its behalf and in its name. If any separate trustee or co-trustee
shall die, become incapable of acting, resign or be removed, all of its estates,
properties, rights, remedies and trusts shall vest in and be exercised by the
Trustee, to the extent permitted by law, without the appointment of a new or
successor trustee.
Section 8.11. Tax Matters.
It is intended that the assets with respect to which each Trust
REMIC election is to be made, as set forth in the Preliminary Statement, shall
constitute, and that the conduct of matters relating to such assets shall be
such as to qualify such assets as, a "real estate mortgage investment conduit"
as defined in and in accordance with the REMIC Provisions. In furtherance of
such intention, the Master Servicer covenants and agrees that it shall act as
agent (and the Master Servicer is hereby appointed to act as agent) on behalf of
each Trust REMIC and that in such capacity it shall: (a) prepare, submit to the
Trustee for execution, and file, or cause to be prepared and filed, in a timely
manner, a U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return
(Form 1066 or any successor form adopted by the Internal Revenue Service) and
prepare and file or cause to be prepared and filed with the Internal Revenue
Service and applicable state or local tax authorities income tax or information
returns for each taxable year with respect to each Trust REMIC, containing such
information and at the times and in the manner as may be required by the Code or
state or local tax laws, regulations, or rules, and furnish or cause to be
furnished to Certificateholders the schedules, statements or information at such
times and in such manner as may be required thereby, including without
limitation, the calculation of any original issue discount using the Prepayment
Assumption; (b) apply for an Employee Identification Number from the Internal
Revenue Service via Form SS-4 or other acceptable method for each Trust REMIC
and within thirty days of the Closing Date, furnish or cause to be furnished to
the Internal Revenue Service, on Form 8811 or as otherwise may be required by
the Code, the name, title, address, and telephone number of the person that the
holders of the Certificates may contact for tax information relating thereto,
together with such additional information as may be required by such Form, and
update such information at the time or times in the manner required by the Code;
(c) make or cause to be made elections that each Trust REMIC be treated as a
REMIC on the federal tax return for its first taxable year (and, if necessary,
under applicable state law); (d) provide information necessary for the
computation of tax imposed on the transfer of a Residual Certificate to a Person
that is not a Permitted Transferee described in clauses (i)-(iv) of the
definition thereof, or an agent (including a broker, nominee or other middleman)
of a non-Permitted Transferee (the reasonable cost of computing and furnishing
such information may be charged to the Person liable for such tax); (e) to the
extent that they are under its control, conduct matters relating to such assets
at all times that any Certificates are outstanding so as to maintain the status
of each Trust REMIC as a REMIC under the REMIC Provisions; (f) not knowingly or
intentionally take any action or omit to take any action that would cause the
termination of REMIC status; (g) not permit the creation of any interests in any
Trust REMIC other than the Certificates; (h) not receive any amount representing
a fee or other compensation for services (except as otherwise permitted by this
Agreement); (i) receive any income attributable to any asset which is neither a
"qualified mortgage" nor a "permitted investment" within the meaning of the
REMIC Provisions; (j) not receive any contributions to any Trust REMIC after the
Startup Day that would be subject to tax under Section 860G(d) of the Code; (k)
not dispose of any assets of any Trust REMIC at a gain if such disposition would
be a "prohibited transaction" within the meaning of Section 860F(a)(2) of the
Code; (l) pay, from the sources specified in the last paragraph of this Section
8.11, the amount of any federal or state tax, including prohibited transaction
taxes as described below, imposed on each such Trust REMIC prior to its
termination when and as the same shall be due and payable (but such obligation
shall not prevent the Master Servicer or any other appropriate Person from
contesting any such tax in appropriate proceedings and shall not prevent the
Master Servicer from causing the withholding of payment of such tax, if
permitted by law, pending the outcome of such proceedings); (m) ensure that
federal, state or local income tax or information returns shall be signed by the
Trustee or such other Person as may be required to sign such returns by the Code
or state or local laws, regulations or rules; and (n) maintain records relating
to each Trust REMIC, including but not limited to the income, expenses, assets
and liabilities thereof and the adjusted basis of the assets determined at such
intervals as may be required by the Code, as may be necessary to prepare the
foregoing returns, schedules, statements or information. The Holder of the
largest Percentage Interest of the Class A-R Certificates shall act as "tax
matters person" for each Trust REMIC within the meaning of Treasury Regulations
Section 1.860F-4(d), and the Master Servicer is hereby designated as agent of
such Class A-R Certificateholder for such purpose (or if the Master Servicer is
not so permitted, such Holder shall be the tax matters person in accordance with
the REMIC Provisions). In such capacity, the Master Servicer shall, as and when
necessary and appropriate, represent the related Trust REMIC in any
administrative or judicial proceedings relating to an examination or audit by
any governmental taxing authority, request an administrative adjustment as to
any taxable year of such Trust REMIC, enter into settlement agreements with any
governmental taxing agency, extend any statute of limitations relating to any
tax item of such Trust REMIC, and otherwise act on behalf of such Trust REMIC in
relation to any tax matter or controversy involving it.
In order to enable the Master Servicer to perform its duties as set
forth herein, the Depositor shall provide, or cause to be provided, to the
Master Servicer within ten (10) days after the Closing Date all information or
data that the Master Servicer requests in writing and determines to be relevant
for tax purposes to the valuations and offering prices of the Certificates,
including, without limitation, the price, yield, prepayment assumption and
projected cash flows of the Certificates and the Mortgage Loans. Thereafter, the
Depositor shall provide to the Master Servicer promptly upon written request
therefor, any such additional information or data that the Master Servicer may,
from time to time, reasonably request in order to enable the Master Servicer to
perform its duties as set forth herein. The Depositor hereby indemnifies the
Master Servicer for any losses, liabilities, damages, claims or expenses of the
Master Servicer arising from any errors or miscalculations of the Master
Servicer that result from any failure of the Depositor to provide, or to cause
to be provided, accurate information or data to the Master Servicer on a timely
basis.
In the event that any tax is imposed on "prohibited transactions" of
any Trust REMIC as defined in Section 860F(a)(2) of the Code, on the "net income
from foreclosure property" of such Trust REMIC as defined in Section 860G(c) of
the Code, on any contribution to such Trust REMIC after the Startup Day pursuant
to Section 860G(d) of the Code, or any other tax is imposed, if not paid as
otherwise provided for herein, such tax shall be paid by (i) the Master Servicer
or the Trustee, respectively, if any such other tax arises out of or results
from a breach by the Master Servicer or the Trustee, respectively, of any of its
obligations under this Agreement, (ii) the Transferor, if any such tax arises
out of or results from the Transferor's obligation to repurchase a Mortgage Loan
pursuant to Section 2.02 or 2.03 or (iii) in all other cases, or in the event
that the Trustee, the Master Servicer or the Transferor fails to honor its
obligations under the preceding clauses (i),(ii) or (iii), any such tax will be
paid with amounts otherwise to be distributed to the Certificateholders, as
provided in Section 3.10(b).
Section 8.12. Periodic Filings.
(a) With respect to each Distribution Date, prior to the issuance of
the related Monthly Statement to Certificateholders pursuant to Section 4.06,
the Master Servicer shall confirm that it has received all distribution and/or
servicing information required to be provided to the Master Servicer by each
Servicer for inclusion in such Monthly Statement. In the event the Master
Servicer determines that any such information has not been provided as required
or is materially incorrect, the Master Servicer shall immediately notify the
applicable Servicer and use its reasonable best efforts to cause the Servicer to
provide or correct, as the case may be, such information promptly (but in any
event in time to permit the Master Servicer to distribute the Monthly Statement
at the time required in this Agreement).
(b) Promptly upon receipt by the Master Servicer of (i) any
officer's certificate relating to any Servicer's annual compliance with the
terms of the applicable Purchase and Servicing Agreement, (ii) any report of any
Servicer's independent public accountants relating to the Servicer's compliance
with servicing standards, as required under the applicable Purchase and
Servicing Agreement, and (iii) any report of the Master Servicer's independent
public accountants required pursuant to Section 3.22, the Master Servicer shall
review such officer's certificate and reports. As part of the Form 10-K required
to be filed pursuant to paragraph (c) of this Section 8.12, the Master Servicer
shall include each such Servicer's annual statement of compliance (as well as
any annual statement of compliance required pursuant to Section 3.21), and each
such accountant's report, as well as a report of any significant deficiencies
relating to any Servicer's performance of its obligations under the applicable
Purchase and Servicing Agreement.
(c) The Master Servicer shall reasonably cooperate with the
Depositor to enable the Trust to satisfy its reporting requirements under the
Exchange Act. The Master Servicer shall prepare on behalf of the Trust any Forms
8-K and 10-K customary for similar securities as required by the Exchange Act
and the rules and regulations promulgated thereunder, and the Master Servicer
shall sign and file (via the Securities and Exchange Commission's Electronic
Data Gathering and Retrieval System) such Forms on behalf of the Trust.
(d) Each Form 8-K shall be filed by the Master Servicer within 15
days after each Distribution Date, which shall include a copy of the Monthly
Statement to the Certificateholders for such Distribution Date as an exhibit
thereto. Prior to March 30th of each year (or such earlier date as may be
required by the Exchange Act and the rules and regulations promulgated
thereunder), the Master Servicer shall file a Form 10-K, in substance as
required by applicable law or applicable Securities and Exchange Commission
staff's interpretations. Such Form 10-K shall include as exhibits the annual
statements of compliance, the accountant's reports and any report of any
significant deficiencies relating to any Servicer's performance of its
obligations under the applicable Purchase and Servicing Agreement described in
paragraph (b) of this Section 8.12, in each case to the extent they have been
timely delivered to the Master Servicer. If they are not so timely delivered,
the Master Servicer shall file an amended Form 10-K including such documents as
exhibits reasonably promptly after they are delivered to the Master Servicer.
The Master Servicer shall have no liability with respect to any failure to
properly prepare or file such periodic reports resulting from or relating to the
Master Servicer's inability or failure to obtain any information not resulting
from its own negligence, bad faith or willful misconduct. Each Form 10-K shall
also include a certification in the form attached hereto as Exhibit M (the
"Certification"), which shall be signed by a Master Servicing Officer.
(e) Upon any filing with the Securities and Exchange Commission, the
Master Servicer shall promptly deliver to the Depositor a copy of any such
executed report, statement or information.
(f) Prior to January 30 of the first year in which the Master
Servicer is able to do so under applicable law, the Master Servicer shall file a
Form 15 Suspension Notification with respect to the Trust.
(g) For purposes of paragraph 5 of the Certification, the Depositor,
upon request of the Master Servicer, agrees to provide the current contact
information of its certified public accountants.
ARTICLE IX
TERMINATION
Section 9.01. Termination upon Liquidation or Purchase of All
Mortgage Loans.
Subject to Section 9.03, the obligations and responsibilities of the
Depositor, the Transferor, the Master Servicer and the Trustee created hereby
with respect to the Trust Fund shall terminate upon the earlier of (a) the
purchase by the Master Servicer of all Group 4 Mortgage Loans or Non-Group 4
Mortgage Loans, as applicable, (and related REO Properties) remaining in the
Trust Fund at the price equal to the sum of (i) 100% of the unpaid principal
balance of each such Mortgage Loan (other than Mortgage Loans for which the
related Mortgaged Property has become REO Property) plus accrued and unpaid
interest thereon at the applicable Net Mortgage Rate and (ii) the lesser of (x)
the appraised value of any related REO Property as determined by the higher of
two appraisals completed by two independent appraisers selected by the Master
Servicer at the expense of the Master Servicer and (y) the unpaid principal
balance of each such Mortgage Loan related to any REO Property plus accrued and
unpaid interest thereon at the applicable Net Mortgage Rate and (b) the later of
(i) the maturity or other liquidation (or any Advance with respect thereto) of
the last such Mortgage Loan remaining in the Trust Fund and the disposition of
all REO Property and (ii) the distribution to Certificateholders of all amounts
required to be distributed to them pursuant to this Agreement. In no event shall
the trusts created hereby continue beyond the earlier of (i) the expiration of
21 years from the death of the survivor of the descendants of Xxxxxx X. Xxxxxxx,
the late Ambassador of the United States to the Court of St. James's, living on
the date hereof and (ii) the Latest Possible Maturity Date. The right to
purchase all Group 4 Mortgage Loans and related REO Properties pursuant to
clause (a) above shall be conditioned upon the Group 4 Pool Principal Balance at
the time of any such repurchase, aggregating less than ten percent of the
aggregate Cut-off Date Principal Balance of the Group 4 Mortgage Loans. The
right to purchase all Non-Group 4 Mortgage Loans and related REO Properties
pursuant to clause (a) above shall be conditioned upon the Non-Group 4 Pool
Principal Balance at the time of any such repurchase, aggregating less than five
percent of the aggregate Cut-off Date Principal Balance of the Non-Group 4
Mortgage Loans.
Section 9.02. Final Distribution on the Certificates.
If on any Servicer Remittance Date, the Master Servicer determines
that there are no Outstanding Mortgage Loans in either (i) Loan Group 1, Loan
Group 2 and Loan Group 3 or (ii) Loan Group 4 and no other funds or assets in
the Trust Fund related to such Loan Group or Loan Groups other than the funds in
the Collection Account, the Master Servicer shall direct the Trustee promptly to
send a final distribution notice to each Certificateholder related to such Loan
Group or Loan Groups. If the Master Servicer elects to terminate all or a
portion of the Trust Fund pursuant to clause (a) of Section 9.01, at least 20
days prior to the date notice is to be mailed to the affected
Certificateholders, the Master Servicer shall notify the Depositor and the
Trustee of the date the Master Servicer intends to terminate all or such portion
of the Trust Fund and of the applicable repurchase price of the related Mortgage
Loans and REO Properties.
Notice of any termination of all or such portion of the Trust Fund,
specifying the Distribution Date on which the related Certificateholders may
surrender their Certificates for payment of the final distribution and
cancellation, shall be given promptly by the Trustee by letter to
Certificateholders mailed not earlier than the 15th day and no later than the
10th day of the month next preceding the month of such final distribution. Any
such notice shall specify (a) the Distribution Date upon which final
distribution on such Certificates will be made upon presentation and surrender
of Certificates at the office therein designated, (b) the amount of such final
distribution, (c) the location of the office or agency at which such
presentation and surrender must be made, and (d) that the Record Date otherwise
applicable to such Distribution Date is not applicable, distributions being made
only upon presentation and surrender of such Certificates at the office therein
specified. The Master Servicer will give such notice to each Rating Agency at
the time such notice is given to such Certificateholders.
Upon presentation and surrender of the Certificates, the Trustee
shall cause to be distributed to the Certificateholders of each Class subject to
the termination, in the order set forth in Sections 4.02 and 4.03 hereof, on the
final Distribution Date, in proportion to their respective Percentage Interests,
with respect to Certificateholders of the same Class, an amount equal to (i) as
to each Class of Regular Certificates, the Certificate Principal Balance thereof
plus (a) accrued interest thereon and (ii) as to the Class A-R Certificates, the
amount, if any, which remains on deposit in the Distribution Account (other than
the amounts retained to meet claims) with respect to the affected Trust REMICs,
respectively, after application pursuant to clause (i) above.
In the event that any affected Certificateholders shall not
surrender Certificates for cancellation within six months after the date
specified in the above mentioned written notice, the Trustee shall give a second
written notice to the remaining Certificateholders to surrender their
Certificates for cancellation and receive the final distribution with respect
thereto. If within six months after the second notice all the applicable
Certificates shall not have been surrendered for cancellation, the Trustee may
take reasonable steps, or may appoint an agent to take reasonable steps, to
contact the remaining Certificateholders concerning surrender of their
Certificates, and the cost thereof shall be paid out of the funds and other
assets of the Upper-Tier REMIC which remain subject hereto and the Class A-R
Certificateholders shall be entitled to all unclaimed funds and other assets of
the affected Trust REMICs, respectively which remain subject hereto.
Section 9.03. Additional Termination Requirements.
In the event the Master Servicer exercises its purchase option as
provided in Section 9.01, all or such portion of the Trust Fund shall be
terminated in accordance with the following additional requirements, unless the
Trustee has been supplied with an Opinion of Counsel, at the expense of the
Master Servicer, to the effect that the failure to comply with the requirements
of this Section 9.03 will not (i) result in the imposition of taxes on
"prohibited transactions" of any Trust REMIC, respectively as defined in section
860F of the Code, or (ii) cause any such Trust REMIC to fail to qualify as a
REMIC at any time that any Certificates are outstanding:
(i) The notice given by the Master Servicer under Section 9.02 shall
provide that such notice constitutes the adoption of a plan of complete
liquidation of Lower-Tier REMIC A (in the case of termination of the
portion of the Trust Fund related to the Group 1 Mortgage Loans, the Group
2 Mortgage Loans and the Group 3 Mortgage Loans) and Lower-Tier REMIC B
(in the case of termination of the portion of the Trust Fund related to
the Group 4 Mortgage Loans) as of the date of such notice (or, if earlier,
the date on which the first such notice is mailed to Certificateholders).
The Trustee shall also specify such date in a statement attached to the
final tax return of such Trust REMIC; and
(ii) At or after the time of adoption of such a plan of complete
liquidation and at or prior to the final Distribution Date, the Trustee
shall sell all of the assets of such Trust REMIC to the Master Servicer
for cash at the purchase price specified in Section 9.01 and shall
distribute such cash within 90 days of such adoption in the manner
specified in Section 9.01.
ARTICLE X
MISCELLANEOUS PROVISIONS
Section 10.01. Amendment.
This Agreement may be amended from time to time by the Depositor,
the Transferor, the Master Servicer and the Trustee without the consent of any
of the Certificateholders (i) to cure any ambiguity or mistake, (ii) to correct
any defective provision herein or to supplement any provision herein which may
be inconsistent with any other provision herein or the Prospectus Supplement,
(iii) to add to the duties of the Depositor, the Transferor, the Trustee or the
Master Servicer, (iv) to add any other provisions with respect to matters or
questions arising hereunder or (v) to modify, alter, amend, add to or rescind
any of the terms or provisions contained in this Agreement; provided that any
action pursuant to clauses (iv) or (v) above shall not, as evidenced by an
Opinion of Counsel (which Opinion of Counsel shall be an expense of the party
requesting the amendment, or if the Trustee requests the amendment, the Trust
Fund), adversely affect in any material respect the interests of any
Certificateholder; provided, however, that the amendment shall not be deemed to
adversely affect in any material respect the interests of the Certificate
holders if the Person requesting the amendment obtains a letter from each Rating
Agency stating that the amendment would not result in the downgrading or
withdrawal of the respective ratings then assigned to the Certificates; it being
understood and agreed that any such letter in and of itself will not represent a
determination as to the materiality of any such amendment and will represent a
determination only as to the credit issues affecting any such rating. The
Trustee, the Depositor, the Transferor, and the Master Servicer also may at any
time and from time to time amend this Agreement without the consent of the
Certificateholders to modify, eliminate or add to any of its provisions to such
extent as shall be necessary or helpful to (i) maintain the qualification of
each Trust REMIC as a REMIC under the Code, (ii) avoid or minimize the risk of
the imposition of any tax on any Trust REMIC pursuant to the Code that would be
a claim at any time prior to the final redemption of the Certificates or (iii)
comply with any other requirements of the Code, provided that the Trustee has
been provided an Opinion of Counsel, which opinion shall be an expense of the
party requesting such opinion but in any case shall not be an expense of the
Trustee or the Trust Fund, to the effect that such action is necessary or
helpful to, as applicable, (i) maintain such qualification, (ii) avoid or
minimize the risk of the imposition of such a tax or (iii) comply with any such
requirements of the Code.
Section 8.12 of this Agreement may also be amended by the Depositor,
the Transferor, the Master Servicer and the Trustee without the consent of any
of the Certificateholders, and without the need for any Opinions of Counsel or
Rating Agency confirmation, in the event that new guidelines or procedures with
respect to the Certification are issued by the SEC.
This Agreement may also be amended from time to time by the
Depositor, the Transferor, the Master Servicer and the Trustee with the consent
of the Holders of a Majority in Interest of each Class of Certificates affected
thereby for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Agreement or of modifying in any
manner the rights of the Holders of Certificates; provided, however, that no
such amendment shall (i) reduce in any manner the amount of, or delay the timing
of, payments required to be distributed on any Certificate without the consent
of the Holder of such Certificate, (ii) adversely affect in any material respect
the interests of the Holders of any Class of Certificates in a manner other than
as described in the preceding clause (i), without the consent of the Holders of
Certificates of such Class evidencing, as to such Class, Percentage Interests
aggregating 66% or (iii) reduce the aforesaid percentages of Certificates the
Holders of which are required to consent to any such amendment, without the
consent of the Holders of all such Certificates then outstanding.
Notwithstanding any contrary provision of this Agreement, the
Trustee shall not consent to any amendment to this Agreement unless it shall
have first received an Opinion of Counsel, which opinion shall not be an expense
of the Trustee or the Trust Fund, to the effect that such amendment is permitted
hereunder and will not cause the imposition of any tax under the REMIC
Provisions on any Trust REMIC or cause any Trust REMIC to fail to qualify as a
REMIC at any time that any Certificates are outstanding.
Promptly after the execution of any amendment to this Agreement
requiring the consent of Certificateholders, the Trustee shall furnish written
notification of the substance or a copy of such amendment to each
Certificateholder and each Rating Agency.
It shall not be necessary for the consent of Certificateholders
under this Section to approve the particular form of any proposed amendment, but
it shall be sufficient if such consent shall approve the substance thereof. The
manner of obtaining such consents and of evidencing the authorization of the
execution thereof by Certificateholders shall be subject to such reasonable
regulations as the Trustee may prescribe.
Nothing in this Agreement shall require the Trustee to enter into an
amendment without receiving an Opinion of Counsel (which Opinion shall not be an
expense of the Trustee or the Trust Fund), satisfactory to the Trustee that (i)
such amendment is permitted and is not prohibited by this Agreement and that all
requirements for amending this Agreement have been complied with; and (ii)
either (A) the amendment does not adversely affect in any material respect the
interests of any Certificateholder or (B) the conclusion set forth in the
immediately preceding clause (A) is not required to be reached pursuant to this
Section 10.01.
Section 10.02. Recordation of Agreement; Counterparts.
This Agreement (or an abstract hereof, if acceptable to the
applicable recording office) is subject to recordation in all appropriate public
offices for real property records in all the towns or other comparable
jurisdictions in which any or all of the Mortgaged Properties are situated, and
in any other appropriate public office or elsewhere, such recordation to be
effected by the Master Servicer at the expense of the Trust on direction by the
Trustee (acting at the written direction of a Majority in Interest of the
Certificateholders), but only upon direction accompanied by an Opinion of
Counsel to the effect that such recordation materially and beneficially affects
the interests of the Certificateholders.
For the purpose of facilitating the recordation of this Agreement as
herein provided and for other purposes, this Agreement may be executed
simultaneously in any number of counterparts, each of which counterparts shall
be deemed to be an original, and such counterparts shall constitute but one and
the same instrument.
Section 10.03. Governing Law.
THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY
THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND
TO BE PERFORMED IN THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HERETO AND THE CERTIFICATEHOLDERS SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.
Section 10.04. Intention of Parties.
It is the express intent of the parties hereto that the conveyance
of the Trust Fund by the Depositor to the Trustee be, and be construed as, an
absolute sale thereof to the Trustee. It is, further, not the intention of the
parties that such conveyance be deemed a pledge thereof by the Depositor to the
Trustee. However, in the event that, notwithstanding the intent of the parties,
such assets are held to be the property of the Depositor, or if for any other
reason this Agreement is held or deemed to create a security interest in such
assets, then (i) this Agreement shall be deemed to be a security agreement
within the meaning of the Uniform Commercial Code of the State of New York and
(ii) the conveyance provided for in this Agreement shall be deemed to be an
assignment and a grant by the Depositor to the Trustee, for the benefit of the
Certificateholders, of a security interest in all of the assets that constitute
the Trust Fund, whether now owned or hereafter acquired.
The Depositor for the benefit of the Certificateholders shall, to
the extent consistent with this Agreement, take such actions as may be necessary
to ensure that, if this Agreement were deemed to create a security interest in
the Trust Fund, such security interest would be deemed to be a perfected
security interest of first priority under applicable law and will be maintained
as such throughout the term of the Agreement. The Depositor shall arrange for
filing any Uniform Commercial Code continuation statements in connection with
any security interest granted or assigned to the Trustee for the benefit of the
Certificateholder.
Section 10.05. Notices.
(a) The Trustee shall use its best efforts to promptly provide
notice to each Rating Agency with respect to each of the following of which it
has actual knowledge:
1. Any material change or amendment to this Agreement;
2. The occurrence of any Master Servicer Event of Termination that
has not been cured;
3. The resignation or termination of the Master Servicer or the
Trustee and the appointment of any successor;
4. The repurchase or substitution of Mortgage Loans pursuant to
Section 2.03; and
5. The final payment to Certificateholders.
In addition, the Master Servicer shall promptly furnish to each
Rating Agency copies of the following:
1. Each annual statement as to compliance described in Section 3.21;
Each annual independent public accountants' servicing report
described in Section 3.22; and
Any notice of a purchase of a Mortgage Loan pursuant to Section 2.02
or 2.03.
(b) All directions, demands and notices hereunder shall be in
writing and shall be deemed to have been duly given when delivered to (a) in the
case of the Depositor, Mortgage Asset Securitization Transactions, Inc., 0000
Xxxxxx xx xxx Xxxxxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: General Counsel,
(b) in the case of the Master Servicer, Xxxxx Fargo Bank Minnesota, N.A., 0000
Xxx Xxxxxxxxx Xxxx, Xxxxxxxx, Xxxxxxxx 00000-0000, Attention: Client
Manager--MARM 2003-1 or such other address as may be hereafter furnished to the
Depositor and the Trustee by the Master Servicer in writing, (c) in the case of
the Trustee, the Corporate Trust Office, Attention: MASTR Adjustable Rate
Mortgages Trust 2003-1, or such other address as the Trustee may hereafter
furnish to the Depositor or Master Servicer, (d) in the case of the Transferor,
UBS Warburg Real Estate Securities Inc., 0000 Xxxxxx xx xxx Xxxxxxxx, Xxx Xxxx,
Xxx Xxxx 00000, Attention: General Counsel and (e) in the case of the Rating
Agencies, the address specified therefor in the definition corresponding to the
name of such Rating Agency. Notices to Certificateholders shall be deemed given
when mailed, first class postage prepaid, to their respective addresses
appearing in the Certificate Register.
Section 10.06. Severability of Provisions.
If any one or more of the covenants, agreements, provisions or terms
of this Agreement shall be for any reason whatsoever held invalid, then such
covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, agreements, provisions or terms of this Agreement and shall
in no way affect the validity or enforceability of the other provisions of this
Agreement or of the Certificates or the rights of the Holders thereof.
Section 10.07. Assignment.
Notwithstanding anything to the contrary contained herein, except as
provided in Section 6.02 and this Section 10.07, this Agreement may not be
assigned by the Master Servicer without the prior written consent of the Trustee
and Depositor. Pursuant to Section 6.05, the Master Servicer shall be permitted
to pledge its rights as servicer hereunder to a lender provided that no such
pledge shall permit the termination of the Master Servicer as Master Servicer
unless a successor servicer meeting the requirements of Sections 6.04 and 7.02
hereunder shall have assumed the rights and obligations of the Master Servicer
hereunder.
Section 10.08. Limitation on Rights of Certificateholders.
The death or incapacity of any Certificateholder shall not operate
to terminate this Agreement or the trust created hereby, nor entitle such
Certificateholder's legal representative or heirs to claim an accounting or to
take any action or commence any proceeding in any court for a petition or
winding up of the trust created hereby, or otherwise affect the rights,
obligations and liabilities of the parties hereto or any of them.
No Certificateholder shall have any right to vote (except as
provided herein) or in any manner otherwise control the operation and management
of the Trust Fund, or the obligations of the parties hereto, nor shall anything
herein set forth or contained in the terms of the Certificates be construed so
as to constitute the Certificateholders from time to time as partners or members
of an association; nor shall any Certificateholder be under any liability to any
third party by reason of any action taken by the parties to this Agreement
pursuant to any provision hereof.
No Certificateholder shall have any right by virtue or by availing
itself of any provisions of this Agreement to institute any suit, action or
proceeding in equity or at law upon or under or with respect to this Agreement,
unless such Holder previously shall have given to the Trustee a written notice
of a Master Servicer Event of Termination and of the continuance thereof, as
herein provided, and unless the Holders of Certificates evidencing not less than
25% of the Voting Rights evidenced by the Certificates shall also have made
written request to the Trustee to institute such action, suit or proceeding in
its own name as Trustee hereunder and shall have offered to the Trustee such
reasonable indemnity as it may require against the costs, expenses, and
liabilities to be incurred therein or thereby, and the Trustee, for 60 days
after its receipt of such notice, request and offer of indemnity shall have
neglected or refused to institute any such action, suit or proceeding; it being
understood and intended, and being expressly covenanted by each
Certificateholder with every other Certificateholder and the Trustee, that no
one or more Holders of Certificates shall have any right in any manner whatever
by virtue or by availing itself or themselves of any provisions of this
Agreement to affect, disturb or prejudice the rights of the Holders of any other
of the Certificates, or to obtain or seek to obtain priority over or preference
to any other such Holder or to enforce any right under this Agreement, except in
the manner herein provided and for the common benefit of all Certificateholders.
For the protection and enforcement of the provisions of this Section 10.08, each
and every Certificateholder and the Trustee shall be entitled to such relief as
can be given either at law or in equity.
Section 10.09. Inspection and Audit Rights.
The Master Servicer agrees that, on reasonable prior notice, it will
permit and will cause each Servicer to permit any representative of the
Depositor or the Trustee during the Master Servicer's or Servicer's, as the case
may be, normal business hours, to examine all the books of account, records,
reports and other papers of the Master Servicer or the Servicer, as the case may
be, relating to the Mortgage Loans, to make copies and extracts therefrom, to
cause such books to be audited by independent certified public accountants
selected by the Depositor or the Trustee and to discuss its affairs, finances
and accounts relating to the Mortgage Loans with its officers, employees and
independent public accountants (and by this provision the Master Servicer or the
Servicer, as the case may be, hereby authorizes said accountants to discuss with
such representative such affairs, finances and accounts), all at such reasonable
times and as often as may be reasonably requested. Any out-of-pocket expense
incident to the exercise by the Depositor or the Trustee of any right under this
Section 10.09 shall be borne by the party requesting such inspection; all other
such expenses shall be borne by the Master Servicer or the related Servicer.
Section 10.10. Certificates Nonassessable and Fully Paid.
It is the intention of the Depositor that Certificateholders shall
not be personally liable for obligations of the Trust Fund, that the interests
in the Trust Fund represented by the Certificates shall be nonassessable for any
reason whatsoever, and that the Certificates, upon due authentication thereof by
the Trustee pursuant to this Agreement, are and shall be deemed fully paid.
IN WITNESS WHEREOF, the Depositor, the Trustee, the Transferor and
the Master Servicer have caused their names to be signed hereto by their
respective officers thereunto duly authorized as of the day and year first above
written.
MORTGAGE ASSET SECURITIZATION
TRANSACTIONS, INC.,
as Depositor
By: /s/ Xxxxx Xxxxxxxx
--------------------------------
Name: Xxxxx Xxxxxxxx
Title: Associate Director
By: /s/ Xxxx Xxxxxxxxx
--------------------------------
Name: Xxxx Xxxxxxxxx
Title: Director
JPMORGAN CHASE BANK,
as Trustee
By: /s/ Xxxxxxx Xxxxxxxxx
---------------------------------
Name: Xxxxxxx Xxxxxxxxx
Title: Assistant Vice President
UBS WARBURG REAL ESTATE SECURITIES
INC.,
as Transferor
By: /s/ Xxxxx Xxxxxxxx
---------------------------------
Name: Xxxxx Xxxxxxxx
Title: Associate Director
By: /s/ Xxxx Xxxxxxxxx
---------------------------------
Name: Xxxx Xxxxxxxxx
Title: Director
XXXXX FARGO BANK MINNESOTA, N.A.,
as Master Servicer
By: /s/ Xxxxx X. Xxxxxx
---------------------------------
Name: Xxxxx X. Xxxxxx
Title: Vice President
STATE OF NEW YORK )
) ss.:
COUNTY OF NEW YORK )
On the 24th day of January, 2003 before me, a notary public in and
for said State, personally appeared Xxxxx Xxxxxxxx and Xxxx Xxxxxxxxx known to
me to be an Associate Director and Director of Mortgage Asset Securitization
Transactions, Inc., one of the corporations that executed the within instrument,
and also known to me to be the persons who executed it on behalf of such
corporation, and acknowledged to me that such corporation executed the within
instrument.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.
/s/ Xxxxxx X. Xxxx
--------------------------
Notary Public
STATE OF NEW YORK )
) ss.:
COUNTY OF NEW YORK )
On the 30th day of January, 2003 before me, a notary public in and
for said State, personally appeared Xxxxxxx Xxxxxxxxx known to me to be an
Assistant Vice President of JPMorgan Chase Bank, one of the corporations that
executed the within instrument, and also known to me to be the person who
executed it on behalf of such corporation, and acknowledged to me that such
corporation executed the within instrument.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.
/s/ Xxxxxxxx X. Xxxxx
-------------------------------
Notary Public
STATE OF MARYLAND )
) ss.:
COUNTY OF XXXXXX )
On the 30th day of January, 2003 before me, a notary public in and
for said State, personally appeared Xxxxx X. Xxxxxx known to me to be a Vice
President of Xxxxx Fargo Bank Minnesota, N.A., one of the corporations that
executed the within instrument, and also known to me to be the person who
executed it on behalf of such corporation, and acknowledged to me that such
corporation executed the within instrument.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.
/s/ Xxxxxxxx X. Xxxx
---------------------------
Notary Public
STATE OF NEW YORK )
) ss.:
COUNTY OF NEW YORK )
On the 24th day of January, 2003 before me, a notary public in and
for said State, personally appeared Xxxxx Xxxxxxxx and Xxxx Xxxxxxxxx known to
me to be an Associate Director and Director of UBS Warburg Real Estate
Securities Inc., one of the corporations that executed the within instrument,
and also known to me to be the person who executed it on behalf of such
corporation, and acknowledged to me that such corporation executed the within
instrument.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.
/s/ Xxxxxx X. Xxxx
--------------------------
Notary Public
SCHEDULE I
Mortgage Loan Schedule
(Available upon request to Cadwalader, Xxxxxxxxxx and Xxxx LLP.)
SCHEDULE II
MASTR Adjustable Rate Mortgages Trust
Mortgage Pass-Through Certificates
Series 2003-1
Representations and Warranties as to the Mortgage Loans
UBS Warburg Real Estate Securities Inc. (the "Transferor") hereby
makes with respect to the Bank One Mortgage Loans, the Countrywide Mortgage
Loans, the Xxxxxx Mortgage Loans and the Greenpoint Mortgage Loans sold by it to
the Depositor pursuant to the Mortgage Loan Purchase Agreement the following
representation and warranty. Capitalized terms used but not otherwise defined in
this Schedule II shall have the meanings ascribed thereto in the Pooling and
Servicing Agreement (the "Pooling and Servicing Agreement") relating to the
above-referenced Series, among the Transferor, Mortgage Asset Securitization
Transactions, Inc., as depositor, Xxxxx Fargo Bank Minnesota, N.A., as master
servicer, and JPMorgan Chase Bank, as trustee.
With respect to each representation and warranty relating to the
Mortgage Loans made by Bank One, Countrywide, Xxxxxx and Greenpoint as of the
related Loan Sale Date, to the Transferor's knowledge, no event has occurred
from such Loan Sale Date which would render such representations and warranties
to be untrue in any material respect.
EXHIBIT A-1
(FORM OF CLASS 1-A-1 CERTIFICATE)
Unless this certificate is presented by an authorized representative
of The Depository Trust Company, a New York corporation ("DTC"), to Issuer or
its agent for registration of transfer, exchange, or payment, and any
certificate issued is registered in the name of Cede & Co. or in such other name
as is requested by an authorized representative of DTC (and any payment is made
to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").
Certificate No.: 1-A-1-1
Cut-off Date: January 1, 2003
First Distribution Date: February 25, 2003
Last Scheduled Distribution Date: December 25, 2032
Pass-Through Rate: Floating
in accordance
with
the Agreement
Initial Certificate Principal Balance of this Certificate $[_________]
("Denomination"):
Initial Certificate Principal Balances of all Certificates $17,554,000
of this Class:
CUSIP: 576433 CH 7
ISIN: US576433CH70
MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.
MASTR ADJUSTABLE RATE MORTGAGES TRUST 2003-1
Mortgage Pass-Through Certificates, Series 2003-1
Class 1-A-1
evidencing a percentage interest in the distributions allocable to
the Certificates of the above-referenced Class with respect to a
Trust Fund consisting primarily of four pools of conventional
mortgage loans (the "Mortgage Loans") secured by first liens on one-
to four-family residential properties
Mortgage Asset Securitization Transactions, Inc., as Depositor
Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance at any time may
be less than the Certificate Principal Balance as set forth herein. This
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Servicer or the Trustee referred to below or
any of their respective affiliates. Neither this Certificate nor the Mortgage
Loans are guaranteed or insured by any governmental agency or instrumentality.
This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Certificate (obtained by dividing the
Denomination of this Certificate by the aggregate initial Class Principal
Balances of all Certificates of the Class to which this Certificate belongs) in
certain monthly distributions with respect to a Trust Fund consisting primarily
of the Mortgage Loans deposited by Mortgage Asset Securitization Transactions,
Inc. (the "Depositor"). The Trust Fund was created pursuant to a Pooling and
Servicing Agreement dated as of the Cut-off Date specified above (the
"Agreement") among the Depositor, UBS Warburg Real Estate Securities Inc., as
transferor (the "Transferor"), Xxxxx Fargo Bank Minnesota, N.A., as master
servicer (the "Servicer"), and JPMorgan Chase Bank, as trustee (the "Trustee").
Distributions on this Certificate will be made primarily from collections on the
Group 1 Mortgage Loans. To the extent not defined herein, the capitalized terms
used herein have the meanings assigned in the Agreement. This Certificate is
issued under and is subject to the terms, provisions and conditions of the
Agreement, to which Agreement the Holder of this Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.
Reference is hereby made to the further provisions of this
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.
This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: January ___, 2003
JPMORGAN CHASE BANK,
as Trustee
By:____________________________________
Countersigned:
By:___________________________
Authorized Signatory of
JPMORGAN CHASE BANK,
as Trustee
EXHIBIT A-2
(FORM OF CLASS 1-A-IO CERTIFICATE)
Unless this certificate is presented by an authorized representative
of The Depository Trust Company, a New York corporation ("DTC"), to Issuer or
its agent for registration of transfer, exchange, or payment, and any
certificate issued is registered in the name of Cede & Co. or in such other name
as is requested by an authorized representative of DTC (and any payment is made
to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").
THIS CERTIFICATE HAS NO PRINCIPAL BALANCE AND IS NOT ENTITLED TO ANY
DISTRIBUTIONS IN RESPECT OF PRINCIPAL.
Certificate No.: 1-A-IO-1
Cut-off Date: January 1, 2003
First Distribution Date: February 25, 2003
Last Scheduled Distribution Date: December 25, 2032
Pass-Through Rate: As set forth in
the Agreement
Initial Notional Amount of this Certificate ("Denomination"): $[_________]
Initial Notional Amount of all Certificates of this Class: $17,554,000
CUSIP: 576433 CJ 3
ISIN: US576433CJ37
MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.
MASTR ADJUSTABLE RATE MORTGAGES TRUST 2003-1
Mortgage Pass-Through Certificates, Series 2003-1
Class 1-A-IO
evidencing a percentage interest in the distributions allocable to
the Certificates of the above-referenced Class with respect to a
Trust Fund consisting primarily of four pools of conventional loans
(the "Mortgage Loans") secured by first liens on one- to four-family
residential properties
Mortgage Asset Securitization Transactions, Inc., as Depositor
This Certificate does not evidence an obligation of, or an interest
in, and is not guaranteed by the Depositor, the Servicer or the Trustee referred
to below or any of their respective affiliates. Neither this Certificate nor the
Mortgage Loans are guaranteed or insured by any governmental agency or
instrumentality.
This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Certificate specified above in certain
monthly distributions with respect to a Trust Fund consisting primarily of the
Mortgage Loans deposited by Mortgage Asset Securitization Transactions, Inc.
(the "Depositor"). The Trust Fund was created pursuant to a Pooling and
Servicing Agreement dated as of the Cut-off Date specified above (the
"Agreement") among the Depositor, UBS Warburg Real Estate Securities Inc., as
transferor (the "Transferor"), Xxxxx Fargo Bank Minnesota, N.A., as master
servicer (the "Servicer"), and JPMorgan Chase Bank, as trustee (the "Trustee").
Distributions on this Certificate will be made primarily from collections on the
Group 1 Mortgage Loans pursuant to the terms of the Agreement. To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.
Reference is hereby made to the further provisions of this
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.
This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: [___________]
JPMORGAN CHASE BANK,
as Trustee
By:____________________________________
Countersigned:
By:___________________________
Authorized Signatory of
JPMORGAN CHASE BANK,
as Trustee
EXHIBIT A-3
(FORM OF CLASS 2-A-1 CERTIFICATE)
Unless this certificate is presented by an authorized representative
of The Depository Trust Company, a New York corporation ("DTC"), to Issuer or
its agent for registration of transfer, exchange, or payment, and any
certificate issued is registered in the name of Cede & Co. or in such other name
as is requested by an authorized representative of DTC (and any payment is made
to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").
Certificate No.: 2-A-1-1
Cut-off Date: January 1, 2003
First Distribution Date: February 25, 2003
Last Scheduled Distribution Date: December 25, 2032
Pass-Through Rate: Floating
in accordance
with the Agreement
Initial Certificate Principal Balance of this Certificate $49,082,000
("Denomination"):
Initial Certificate Principal Balances of all Certificates $[_________]
of this Class:
CUSIP: 576433 DA 1
ISIN: US576433DA19
MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.
MASTR ADJUSTABLE RATE MORTGAGES TRUST 2003-1
Mortgage Pass-Through Certificates, Series 2003-1
Class 2-A-1
evidencing a percentage interest in the distributions allocable to
the Certificates of the above-referenced Class with respect to a
Trust Fund consisting primarily of four pools of conventional
mortgage loans (the "Mortgage Loans") secured by first liens on one-
to four-family residential properties
Mortgage Asset Securitization Transactions, Inc., as Depositor
Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance at any time may
be less than the Certificate Principal Balance as set forth herein. This
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Servicer or the Trustee referred to below or
any of their respective affiliates. Neither this Certificate nor the Mortgage
Loans are guaranteed or insured by any governmental agency or instrumentality.
This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Certificate (obtained by dividing the
Denomination of this Certificate by the aggregate initial Class Principal
Balances of all Certificates of the Class to which this Certificate belongs) in
certain monthly distributions with respect to a Trust Fund consisting primarily
of the Mortgage Loans deposited by Mortgage Asset Securitization Transactions,
Inc. (the "Depositor"). The Trust Fund was created pursuant to a Pooling and
Servicing Agreement dated as of the Cut-off Date specified above (the
"Agreement") among the Depositor, UBS Warburg Real Estate Securities Inc., as
transferor (the "Transferor"), Xxxxx Fargo Bank Minnesota, N.A., as master
servicer (the "Servicer"), and JPMorgan Chase Bank, as trustee (the "Trustee").
Distributions on this Certificate will be made primarily from collections on the
Group 2 Mortgage Loans. To the extent not defined herein, the capitalized terms
used herein have the meanings assigned in the Agreement. This Certificate is
issued under and is subject to the terms, provisions and conditions of the
Agreement, to which Agreement the Holder of this Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.
Reference is hereby made to the further provisions of this
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.
This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: January ___, 2003
JPMORGAN CHASE BANK,
as Trustee
By:____________________________________
Countersigned:
By:___________________________
Authorized Signatory of
JPMORGAN CHASE BANK,
as Trustee
EXHIBIT A-4
(FORM OF CLASS 2-A-2 CERTIFICATE)
Unless this certificate is presented by an authorized representative
of The Depository Trust Company, a New York corporation ("DTC"), to Issuer or
its agent for registration of transfer, exchange, or payment, and any
certificate issued is registered in the name of Cede & Co. or in such other name
as is requested by an authorized representative of DTC (and any payment is made
to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").
Certificate No.: 2-A-2-1
Cut-off Date: January 1, 2003
First Distribution Date: February 25, 2003
Last Scheduled Distribution Date: December 25, 2032
Pass-Through Rate: Floating
in accordance
with the Agreement
Initial Certificate Principal Balance of this Certificate $[_________]
("Denomination"):
Initial Certificate Principal Balances of all Certificates $65,000,000
of this Class:
CUSIP: 576433 DC 7
ISIN: US576433DC74
MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.
MASTR ADJUSTABLE RATE MORTGAGES TRUST 2003-1
Mortgage Pass-Through Certificates, Series 2003-1
Class 2-A-2
evidencing a percentage interest in the distributions allocable to
the Certificates of the above-referenced Class with respect to a
Trust Fund consisting primarily of four pools of conventional
mortgage loans (the "Mortgage Loans") secured by first liens on one-
to four-family residential properties
Mortgage Asset Securitization Transactions, Inc., as Depositor
Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance at any time may
be less than the Certificate Principal Balance as set forth herein. This
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Servicer or the Trustee referred to below or
any of their respective affiliates. Neither this Certificate nor the Mortgage
Loans are guaranteed or insured by any governmental agency or instrumentality.
This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Certificate (obtained by dividing the
Denomination of this Certificate by the aggregate initial Class Principal
Balances of all Certificates of the Class to which this Certificate belongs) in
certain monthly distributions with respect to a Trust Fund consisting primarily
of the Mortgage Loans deposited by Mortgage Asset Securitization Transactions,
Inc. (the "Depositor"). The Trust Fund was created pursuant to a Pooling and
Servicing Agreement dated as of the Cut-off Date specified above (the
"Agreement") among the Depositor, UBS Warburg Real Estate Securities Inc., as
transferor (the "Transferor"), Xxxxx Fargo Bank Minnesota, N.A., as master
servicer (the "Servicer"), and JPMorgan Chase Bank, as trustee (the "Trustee").
Distributions on this Certificate will be made primarily from collections on the
Group 2 Mortgage Loans. To the extent not defined herein, the capitalized terms
used herein have the meanings assigned in the Agreement. This Certificate is
issued under and is subject to the terms, provisions and conditions of the
Agreement, to which Agreement the Holder of this Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.
Reference is hereby made to the further provisions of this
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.
This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: January ___, 2003
JPMORGAN CHASE BANK,
as Trustee
By:____________________________________
Countersigned:
By:___________________________
Authorized Signatory of
JPMORGAN CHASE BANK,
as Trustee
EXHIBIT A-5
(FORM OF CLASS 2-A-3 CERTIFICATE)
Unless this certificate is presented by an authorized representative
of The Depository Trust Company, a New York corporation ("DTC"), to Issuer or
its agent for registration of transfer, exchange, or payment, and any
certificate issued is registered in the name of Cede & Co. or in such other name
as is requested by an authorized representative of DTC (and any payment is made
to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").
Certificate No.: 2-A-3-1
Cut-off Date: January 1, 2003
First Distribution Date: February 25, 2003
Last Scheduled Distribution Date: December 25, 2032
Pass-Through Rate: Floating
in accordance
with the Agreement
Initial Certificate Principal Balance of this Certificate $[_________]
("Denomination"):
Initial Certificate Principal Balances of all Certificates $2,275,000
of this Class:
CUSIP: 576433 DD 5
ISIN: US576433DD57
MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.
MASTR ADJUSTABLE RATE MORTGAGES TRUST 2003-1
Mortgage Pass-Through Certificates, Series 2003-1
Class 2-A-3
evidencing a percentage interest in the distributions allocable to
the Certificates of the above-referenced Class with respect to a
Trust Fund consisting primarily of four pools of conventional
mortgage loans (the "Mortgage Loans") secured by first liens on one-
to four-family residential properties
Mortgage Asset Securitization Transactions, Inc., as Depositor
Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance at any time may
be less than the Certificate Principal Balance as set forth herein. This
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Servicer or the Trustee referred to below or
any of their respective affiliates. Neither this Certificate nor the Mortgage
Loans are guaranteed or insured by any governmental agency or instrumentality.
This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Certificate (obtained by dividing the
Denomination of this Certificate by the aggregate initial Class Principal
Balances of all Certificates of the Class to which this Certificate belongs) in
certain monthly distributions with respect to a Trust Fund consisting primarily
of the Mortgage Loans deposited by Mortgage Asset Securitization Transactions,
Inc. (the "Depositor"). The Trust Fund was created pursuant to a Pooling and
Servicing Agreement dated as of the Cut-off Date specified above (the
"Agreement") among the Depositor, UBS Warburg Real Estate Securities Inc., as
transferor (the "Transferor"), Xxxxx Fargo Bank Minnesota, N.A., as master
servicer (the "Servicer"), and JPMorgan Chase Bank, as trustee (the "Trustee").
Distributions on this Certificate will be made primarily from collections on the
Group 2 Mortgage Loans. To the extent not defined herein, the capitalized terms
used herein have the meanings assigned in the Agreement. This Certificate is
issued under and is subject to the terms, provisions and conditions of the
Agreement, to which Agreement the Holder of this Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.
Reference is hereby made to the further provisions of this
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.
This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: January ___, 2003
JPMORGAN CHASE BANK,
as Trustee
By:____________________________________
Countersigned:
By:___________________________
Authorized Signatory of
JPMORGAN CHASE BANK,
as Trustee
EXHIBIT A-6
(FORM OF CLASS 2-A-IO CERTIFICATE)
Unless this certificate is presented by an authorized representative
of The Depository Trust Company, a New York corporation ("DTC"), to Issuer or
its agent for registration of transfer, exchange, or payment, and any
certificate issued is registered in the name of Cede & Co. or in such other name
as is requested by an authorized representative of DTC (and any payment is made
to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").
THIS CERTIFICATE HAS NO PRINCIPAL BALANCE AND IS NOT ENTITLED TO ANY
DISTRIBUTIONS IN RESPECT OF PRINCIPAL.
Certificate No.: 2-A-IO-1
Cut-off Date: January 1, 2003
First Distribution Date: February 25, 2003
Last Scheduled Distribution Date: December 25, 2032
Pass-Through Rate: As set forth in
the Agreement
Initial Notional Amount of this Certificate ("Denomination"): $[_________]
Initial Notional Amount of all Certificates of this Class: $116,357,000
CUSIP: 576433 CK 0
ISIN: US576433CK00
MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.
MASTR ADJUSTABLE RATE MORTGAGES TRUST 2003-1
Mortgage Pass-Through Certificates, Series 2003-1
Class 2-A-IO
evidencing a percentage interest in the distributions allocable to
the Certificates of the above-referenced Class with respect to a
Trust Fund consisting primarily of four pools of conventional loans
(the "Mortgage Loans") secured by first liens on one- to four-family
residential properties
Mortgage Asset Securitization Transactions, Inc., as Depositor
This Certificate does not evidence an obligation of, or an interest
in, and is not guaranteed by the Depositor, the Servicer or the Trustee referred
to below or any of their respective affiliates. Neither this Certificate nor the
Mortgage Loans are guaranteed or insured by any governmental agency or
instrumentality.
This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Certificate specified above in certain
monthly distributions with respect to a Trust Fund consisting primarily of the
Mortgage Loans deposited by Mortgage Asset Securitization Transactions, Inc.
(the "Depositor"). The Trust Fund was created pursuant to a Pooling and
Servicing Agreement dated as of the Cut-off Date specified above (the
"Agreement") among the Depositor, UBS Warburg Real Estate Securities Inc., as
transferor (the "Transferor"), Xxxxx Fargo Bank Minnesota, N.A., as master
servicer (the "Servicer"), and JPMorgan Chase Bank, as trustee (the "Trustee").
Distributions on this Certificate will be made primarily from collections on the
Group 2 Mortgage Loans pursuant to the terms of the Agreement. To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.
Reference is hereby made to the further provisions of this
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.
This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: [___________]
JPMORGAN CHASE BANK,
as Trustee
By:____________________________________
Countersigned:
By:___________________________
Authorized Signatory of
JPMORGAN CHASE BANK,
as Trustee
EXHIBIT A-7
(FORM OF CLASS 3-A-1 CERTIFICATE)
Unless this certificate is presented by an authorized representative
of The Depository Trust Company, a New York corporation ("DTC"), to Issuer or
its agent for registration of transfer, exchange, or payment, and any
certificate issued is registered in the name of Cede & Co. or in such other name
as is requested by an authorized representative of DTC (and any payment is made
to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").
Certificate No.: 3-A-1-1
Cut-off Date: January 1, 2003
First Distribution Date: February 25, 2003
Last Scheduled Distribution Date: January 25, 2033
Pass-Through Rate: Floating
in accordance
with the Agreement
Initial Certificate Principal Balance of this Certificate $[_________]
("Denomination"):
Initial Certificate Principal Balances of all Certificates $24,294,000
of this Class:
CUSIP: 576433 CL 8
ISIN: US576433CL82
MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.
MASTR ADJUSTABLE RATE MORTGAGES TRUST 2003-1
Mortgage Pass-Through Certificates, Series 2003-1
Class 3-A-1
evidencing a percentage interest in the distributions allocable to
the Certificates of the above-referenced Class with respect to a
Trust Fund consisting primarily of four pools of conventional
mortgage loans (the "Mortgage Loans") secured by first liens on one-
to four-family residential properties
Mortgage Asset Securitization Transactions, Inc., as Depositor
Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance at any time may
be less than the Certificate Principal Balance as set forth herein. This
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Servicer or the Trustee referred to below or
any of their respective affiliates. Neither this Certificate nor the Mortgage
Loans are guaranteed or insured by any governmental agency or instrumentality.
This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Certificate (obtained by dividing the
Denomination of this Certificate by the aggregate initial Class Principal
Balances of all Certificates of the Class to which this Certificate belongs) in
certain monthly distributions with respect to a Trust Fund consisting primarily
of the Mortgage Loans deposited by Mortgage Asset Securitization Transactions,
Inc. (the "Depositor"). The Trust Fund was created pursuant to a Pooling and
Servicing Agreement dated as of the Cut-off Date specified above (the
"Agreement") among the Depositor, UBS Warburg Real Estate Securities Inc., as
transferor (the "Transferor"), Xxxxx Fargo Bank Minnesota, N.A., as master
servicer (the "Servicer"), and JPMorgan Chase Bank, as trustee (the "Trustee").
Distributions on this Certificate will be made primarily from collections on the
Group 3 Mortgage Loans. To the extent not defined herein, the capitalized terms
used herein have the meanings assigned in the Agreement. This Certificate is
issued under and is subject to the terms, provisions and conditions of the
Agreement, to which Agreement the Holder of this Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.
Reference is hereby made to the further provisions of this
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.
This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: January ___, 2003
JPMORGAN CHASE BANK,
as Trustee
By:____________________________________
Countersigned:
By:___________________________
Authorized Signatory of
JPMORGAN CHASE BANK,
as Trustee
EXHIBIT A-8
(FORM OF CLASS 3-A-IO CERTIFICATE)
Unless this certificate is presented by an authorized representative
of The Depository Trust Company, a New York corporation ("DTC"), to Issuer or
its agent for registration of transfer, exchange, or payment, and any
certificate issued is registered in the name of Cede & Co. or in such other name
as is requested by an authorized representative of DTC (and any payment is made
to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").
THIS CERTIFICATE HAS NO PRINCIPAL BALANCE AND IS NOT ENTITLED TO ANY
DISTRIBUTIONS IN RESPECT OF PRINCIPAL.
Certificate No.: 3-A-IO-1
Cut-off Date: January 1, 2003
First Distribution Date: February 25, 2003
Last Scheduled Distribution Date: January 25, 2033
Pass-Through Rate: As set forth in
the Agreement
Initial Notional Amount of this Certificate ("Denomination"): $[________]
Initial Notional Amount of all Certificates of this Class: $24,294,000
CUSIP: 576433 CM 6
ISIN: US576433CM65
MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.
MASTR ADJUSTABLE RATE MORTGAGES TRUST 2003-1
Mortgage Pass-Through Certificates, Series 2003-1
Class 3-A-IO
evidencing a percentage interest in the distributions allocable to
the Certificates of the above-referenced Class with respect to a
Trust Fund consisting primarily of four pools of conventional loans
(the "Mortgage Loans") secured by first liens on one- to four-family
residential properties
Mortgage Asset Securitization Transactions, Inc., as Depositor
This Certificate does not evidence an obligation of, or an interest
in, and is not guaranteed by the Depositor, the Servicer or the Trustee referred
to below or any of their respective affiliates. Neither this Certificate nor the
Mortgage Loans are guaranteed or insured by any governmental agency or
instrumentality.
This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Certificate specified above in certain
monthly distributions with respect to a Trust Fund consisting primarily of the
Mortgage Loans deposited by Mortgage Asset Securitization Transactions, Inc.
(the "Depositor"). The Trust Fund was created pursuant to a Pooling and
Servicing Agreement dated as of the Cut-off Date specified above (the
"Agreement") among the Depositor, UBS Warburg Real Estate Securities Inc., as
transferor (the "Transferor"), Xxxxx Fargo Bank Minnesota, N.A., as master
servicer (the "Servicer"), and JPMorgan Chase Bank, as trustee (the "Trustee").
Distributions on this Certificate will be made primarily from collections on the
Group 3 Mortgage Loans pursuant to the terms of the Agreement. To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.
Reference is hereby made to the further provisions of this
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.
This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: [___________]
JPMORGAN CHASE BANK,
as Trustee
By:____________________________________
Countersigned:
By:___________________________
Authorized Signatory of
JPMORGAN CHASE BANK,
as Trustee
EXHIBIT A-9
(FORM OF CLASS A-R CERTIFICATE)
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"RESIDUAL INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE
TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE"). TRANSFERS OF THIS CERTIFICATE TO
ANY PERSON WHO IS NOT A PERMITTED TRANSFEREE, AS SET FORTH IN SECTION 5.02(C) OF
THE AGREEMENT IS PROHIBITED.
NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED
UNLESS THE PROPOSED TRANSFEREE DELIVERS TO THE TRUSTEE A TRANSFER AFFIDAVIT IN
ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.
THE HOLDER OF THIS CERTIFICATE BY ITS ACCEPTANCE HEREOF AGREES NOT
TO OFFER, SELL OR OTHERWISE TRANSFER SUCH CERTIFICATE EXCEPT IN ACCORDANCE WITH
ALL APPLICABLE STATE SECURITIES LAWS AND (A) PURSUANT TO A REGISTRATION
STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE ACT, (B) FOR SO LONG AS
THIS CERTIFICATE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE ACT
("RULE 144A"), TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A "QUALIFIED
INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A, (C) TO AN INSTITUTIONAL "ACCREDITED INVESTOR" WITHIN
THE MEANING OF RULE 501 (A)(1), (2), (3) OR (7) OF REGULATION D UNDER THE ACT IN
A TRANSACTION EXEMPT FROM THE REGISTRATION REQUIREMENTS UNDER THE ACT, OR (D)
PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
THE ACT, SUBJECT IN EACH OF THE FOREGOING CASES TO THE COMPLETION AND DELIVERY
BY THE TRANSFEROR TO THE TRUSTEE OF A CERTIFICATE OF TRANSFER IN THE FORM
ATTACHED TO THE AGREEMENT.
NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED
UNLESS THE TRANSFEREE DELIVERS TO THE TRUSTEE EITHER A REPRESENTATION LETTER TO
THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR A PLAN
SUBJECT TO SECTION 4975 OF THE CODE, OR, IF THE TRANSFEREE IS AN INSURANCE
COMPANY, A REPRESENTATION LETTER THAT IT IS USING THE ASSETS OF ITS GENERAL
ACCOUNT AND THAT THE PURCHASE AND HOLDING OF THIS CERTIFICATE ARE COVERED UNDER
SECTIONS I AND III OF PROHIBITED TRANSACTION CLASS EXEMPTION 95-60 OR AN OPINION
OF COUNSEL SATISFACTORY TO THE TRUSTEE AND THE SERVICER, TO THE EFFECT THAT THE
PURCHASE OR HOLDING OF THIS CERTIFICATE WILL NOT RESULT IN THE ASSETS OF THE
TRUST FUND BEING DEEMED TO BE "PLAN ASSETS" AND SUBJECT TO THE PROHIBITED
TRANSACTION PROVISIONS OF ERISA AND THE CODE OR SIMILAR VIOLATION OF SIMILAR LAW
AND WILL NOT SUBJECT THE TRUSTEE OR THE SERVICER TO ANY OBLIGATION IN ADDITION
TO THOSE EXPRESSLY UNDERTAKEN IN THIS AGREEMENT OR TO ANY LIABILITY.
NOTWITHSTANDING ANYTHING ELSE TO THE CONTRARY HEREIN, ANY PURPORTED TRANSFER OF
THIS CERTIFICATE TO OR ON BEHALF OF AN EMPLOYEE BENEFIT PLAN SUBJECT TO ERISA OR
TO THE CODE WITHOUT THE REPRESENTATION LETTER AS DESCRIBED ABOVE SHALL BE VOID
AND OF NO EFFECT.
Certificate No.: A-R-1
Cut-off Date: January 1, 2003
First Distribution Date: February 25, 2003
Last Scheduled Distribution Date: January 25, 2033
Pass-Through Rate: Floating
in accordance
with the Agreement
Initial Certificate Principal Balance of this Certificate $100
("Denomination"):
Initial Certificate Principal Balances of all Certificates $100
of this Class:
CUSIP: 576433 CN 4
ISIN US576433CN49
MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.
MASTR ADJUSTABLE RATE MORTGAGES TRUST 2003-1
Mortgage Pass-Through Certificates, Series 2003-1 evidencing the
distributions allocable to the Class A-R Certificates with respect to a Trust
Fund consisting primarily of four pools of conventional loans (the "Mortgage
Loans") secured by first liens on one- to four-family residential properties
Mortgage Asset Securitization Transactions, Inc., as Depositor
Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance at any time may
be less than the Certificate Principal Balance as set forth herein. This
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Servicer or the Trustee referred to below or
any of their respective affiliates. Neither this Certificate nor the Mortgage
Loans are guaranteed or insured by any governmental agency or instrumentality.
This certifies that UBS Warburg LLC is the registered owner of the
Percentage Interest in certain monthly distributions with respect to a Trust
Fund consisting of the Mortgage Loans deposited by Mortgage Asset Securitization
Transactions, Inc. (the "Depositor"). The Trust Fund was created pursuant to a
Pooling and Servicing Agreement dated as of the Cut-off Date specified above
(the "Agreement") among the Depositor, UBS Warburg Real Estate Securities Inc.,
as transferor (the "Transferor"), Xxxxx Fargo Bank Minnesota, N.A., as master
servicer (the "Servicer"), and JPMorgan Chase Bank, as trustee (the "Trustee").
To the extent not defined herein, the capitalized terms used herein have the
meanings assigned in the Agreement. This Certificate is issued under and is
subject to the terms, provisions and conditions of the Agreement, to which
Agreement the Holder of this Certificate by virtue of the acceptance hereof
assents and by which such Holder is bound.
Any distribution of the proceeds of any remaining assets of the
Trust Fund will be made only upon presentment and surrender of this Class A-R
Certificate at the Corporate Trust Office of the Trustee.
No transfer of a Class A-R Certificate shall be made unless the
Trustee shall have received a representation letter from the transferee of such
Certificate, acceptable to and in form and substance satisfactory to the
Trustee, to the effect that such transferee is not an employee benefit plan
subject to Section 406 of ERISA, Section 4975 of the Code or Similar Law, nor a
person acting on behalf of any such plan, which representation letter shall not
be an expense of the Trustee or the Servicer. Notwithstanding anything else to
the contrary herein any purported transfer of a Class A-R Certificate to or on
behalf of an employee benefit plan subject to ERISA, the Code or Similar Law
shall be void and of no effect.
Each Holder of this Class A-R Certificate will be deemed to have
agreed to be bound by the restrictions of the Agreement, including but not
limited to the restrictions that (i) each person holding or acquiring any
Ownership Interest in this Class A-R Certificate must be a Permitted Transferee,
(ii) no Ownership Interest in this Class A-R Certificate may be transferred
without delivery to the Trustee of (a) a transfer affidavit of the proposed
transferee and (b) a transfer certificate of the transferor, each of such
documents to be in the form described in the Agreement, (iii) each person
holding or acquiring any Ownership Interest in this Class A-R Certificate must
agree to require a transfer affidavit and to deliver a transfer certificate to
the Trustee as required pursuant to the Agreement, (iv) each person holding or
acquiring an Ownership Interest in this Class A-R Certificate must agree not to
transfer an Ownership Interest in this Class A-R Certificate if it has actual
knowledge that the proposed transferee is not a Permitted Transferee and (v) any
attempted or purported transfer of any Ownership Interest in this Class A-R
Certificate in violation of such restrictions will be absolutely null and void
and will vest no rights in the purported transferee.
Reference is hereby made to the further provisions of this
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.
This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: January ___, 2003
JPMORGAN CHASE BANK,
as Trustee
By:____________________________________
Countersigned:
By:___________________________
Authorized Signatory of
JPMORGAN CHASE BANK,
as Trustee
EXHIBIT A-10
(FORM OF CLASS 4-A-1 CERTIFICATE)
Unless this certificate is presented by an authorized representative
of The Depository Trust Company, a New York corporation ("DTC"), to Issuer or
its agent for registration of transfer, exchange, or payment, and any
certificate issued is registered in the name of Cede & Co. or in such other name
as is requested by an authorized representative of DTC (and any payment is made
to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").
Certificate No.: 4-A-1-1
Cut-off Date: January 1, 2003
First Distribution Date: February 25, 2003
Last Scheduled Distribution Date: December 25, 2032
Pass-Through Rate: Floating
in accordance
with the Agreement
Initial Certificate Principal Balance of this Certificate $[_________]
("Denomination"):
Initial Certificate Principal Balances of all Certificates $83,975,857
of this Class:
CUSIP: 576433 CT 1
ISIN: US576433CT19
MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.
MASTR ADJUSTABLE RATE MORTGAGES TRUST 2003-1
Mortgage Pass-Through Certificates, Series 2003-1
Class 4-A-1
evidencing a percentage interest in the distributions allocable to
the Certificates of the above-referenced Class with respect to a
Trust Fund consisting primarily of four pools of conventional
mortgage loans (the "Mortgage Loans") secured by first liens on one-
to four-family residential properties
Mortgage Asset Securitization Transactions, Inc., as Depositor
Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance at any time may
be less than the Certificate Principal Balance as set forth herein. This
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Servicer or the Trustee referred to below or
any of their respective affiliates. Neither this Certificate nor the Mortgage
Loans are guaranteed or insured by any governmental agency or instrumentality.
This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Certificate (obtained by dividing the
Denomination of this Certificate by the aggregate initial Class Principal
Balances of all Certificates of the Class to which this Certificate belongs) in
certain monthly distributions with respect to a Trust Fund consisting primarily
of the Mortgage Loans deposited by Mortgage Asset Securitization Transactions,
Inc. (the "Depositor"). The Trust Fund was created pursuant to a Pooling and
Servicing Agreement dated as of the Cut-off Date specified above (the
"Agreement") among the Depositor, UBS Warburg Real Estate Securities Inc., as
transferor (the "Transferor"), Xxxxx Fargo Bank Minnesota, N.A., as master
servicer (the "Servicer"), and JPMorgan Chase Bank, as trustee (the "Trustee").
Distributions on this Certificate will be made from collections on the Group 4
Mortgage Loans. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.
Reference is hereby made to the further provisions of this
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.
This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: January ___, 2003
JPMORGAN CHASE BANK,
as Trustee
By:____________________________________
Countersigned:
By:___________________________
Authorized Signatory of
JPMORGAN CHASE BANK,
as Trustee
EXHIBIT A-11
(FORM OF CLASS 4-M-1 CERTIFICATE)
Unless this certificate is presented by an authorized representative
of The Depository Trust Company, a New York corporation ("DTC"), to Issuer or
its agent for registration of transfer, exchange, or payment, and any
certificate issued is registered in the name of Cede & Co. or in such other name
as is requested by an authorized representative of DTC (and any payment is made
to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").
THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO CERTAIN
CERTIFICATES AS DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.
Certificate No.: 4-M-1-1
Cut-off Date: January 1, 2003
First Distribution Date: February 25, 2003
Last Scheduled Distribution Date: December 25, 2032
Pass-Through Rate: Floating
in accordance
with the Agreement
Initial Certificate Principal Balance of this Certificate $[________]
("Denomination"):
Initial Certificate Principal Balances of all Certificates $2,999,138
of this Class:
CUSIP: 576433 CU 8
ISIN: US576433CU81
MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.
MASTR ADJUSTABLE RATE MORTGAGES TRUST 2003-1
Mortgage Pass-Through Certificates, Series 2003-1
Class 4-M-1
evidencing a percentage interest in the distributions allocable to
the Certificates of the above-referenced Class with respect to a
Trust Fund consisting primarily of three pools of conventional
mortgage loans (the "Mortgage Loans") secured by first liens on one-
to four-family residential properties
Mortgage Asset Securitization Transactions, Inc., as Depositor
Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance at any time may
be less than the Certificate Principal Balance as set forth herein. This
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Servicer or the Trustee referred to below or
any of their respective affiliates. Neither this Certificate nor the Mortgage
Loans are guaranteed or insured by any governmental agency or instrumentality.
This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Certificate (obtained by dividing the
Denomination of this Certificate by the aggregate initial Class Principal
Balances of all Certificates of the Class to which this Certificate belongs) in
certain monthly distributions with respect to a Trust Fund consisting primarily
of the Mortgage Loans deposited by Mortgage Asset Securitization Transactions,
Inc. (the "Depositor"). The Trust Fund was created pursuant to a Pooling and
Servicing Agreement dated as of the Cut-off Date specified above (the
"Agreement") among the Depositor, UBS Warburg Real Estate Securities Inc., as
transferor (the "Transferor"), Xxxxx Fargo Bank Minnesota, N.A., as master
servicer (the "Servicer"), and JPMorgan Chase Bank, as trustee (the "Trustee").
Distributions on this Certificate will be made from collections on the Group 4
Mortgage Loans. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.
Reference is hereby made to the further provisions of this
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.
This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: January ___, 2003
JPMORGAN CHASE BANK,
as Trustee
By:____________________________________
Countersigned:
By:___________________________
Authorized Signatory of
JPMORGAN CHASE BANK,
as Trustee
EXHIBIT A-12
(FORM OF CLASS 4-M-2 CERTIFICATE)
Unless this certificate is presented by an authorized representative
of The Depository Trust Company, a New York corporation ("DTC"), to Issuer or
its agent for registration of transfer, exchange, or payment, and any
certificate issued is registered in the name of Cede & Co. or in such other name
as is requested by an authorized representative of DTC (and any payment is made
to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").
THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO CERTAIN
CERTIFICATES AS DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.
Certificate No.: 4-M-2-1
Cut-off Date: January 1, 2003
First Distribution Date: February 25, 2003
Last Scheduled Distribution Date: December 25, 2032
Pass-Through Rate: Floating
in accordance
with the Agreement
Initial Certificate Principal Balance of this Certificate $[________]
("Denomination"):
Initial Certificate Principal Balances of all Certificates $2,537,732
of this Class:
CUSIP: 576433 DB 9
ISIN: US576433DB91
MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.
MASTR ADJUSTABLE RATE MORTGAGES TRUST 2003-1
Mortgage Pass-Through Certificates, Series 2003-1
Class 4-M-2
evidencing a percentage interest in the distributions allocable to
the Certificates of the above-referenced Class with respect to a
Trust Fund consisting primarily of four pools of conventional
mortgage loans (the "Mortgage Loans") secured by first liens on one-
to four-family residential properties
Mortgage Asset Securitization Transactions, Inc., as Depositor
Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance at any time may
be less than the Certificate Principal Balance as set forth herein. This
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Servicer or the Trustee referred to below or
any of their respective affiliates. Neither this Certificate nor the Mortgage
Loans are guaranteed or insured by any governmental agency or instrumentality.
This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Certificate (obtained by dividing the
Denomination of this Certificate by the aggregate initial Class Principal
Balances of all Certificates of the Class to which this Certificate belongs) in
certain monthly distributions with respect to a Trust Fund consisting primarily
of the Mortgage Loans deposited by Mortgage Asset Securitization Transactions,
Inc. (the "Depositor"). The Trust Fund was created pursuant to a Pooling and
Servicing Agreement dated as of the Cut-off Date specified above (the
"Agreement") among the Depositor, UBS Warburg Real Estate Securities Inc., as
transferor (the "Transferor"), Xxxxx Fargo Bank Minnesota, N.A., as master
servicer (the "Servicer"), and JPMorgan Chase Bank, as trustee (the "Trustee").
Distributions on this Certificate will be made from collections on the Group 4
Mortgage Loans. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.
Reference is hereby made to the further provisions of this
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.
This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: January ___, 2003
JPMORGAN CHASE BANK,
as Trustee
By:____________________________________
Countersigned:
By:___________________________
Authorized Signatory of
JPMORGAN CHASE BANK,
as Trustee
EXHIBIT B-1
(FORM OF B-1, B-2 OR B-3 CERTIFICATE)
Unless this certificate is presented by an authorized representative
of The Depository Trust Company, a New York corporation ("DTC"), to Issuer or
its agent for registration of transfer, exchange, or payment, and any
certificate issued is registered in the name of Cede & Co. or in such other name
as is requested by an authorized representative of DTC (and any payment is made
to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").
THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO CERTAIN
CERTIFICATES AS DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.
Certificate No.: [B-1-1] [B-2-1]
[B-3-1]
Cut-off Date: January 1, 2003
First Distribution Date: February 25, 2003
Last Scheduled Distribution Date: December 25, 2032
Pass-Through Rate: Floating
in accordance
with the Agreement
Initial Certificate Principal Balance of this Certificate B-1 [________]
("Denomination"): B-2 [________]
B-3 [________]
Initial Certificate Principal Balances of all Certificates B-1 $2,614,000
of this Class: B-2 $898,000
B-3 $735,000
CUSIP: B-1 [ ]
B-2 [ ]
B-3 [ ]
ISIN: B-1 [ ]
B-2 [ ]
B-3 [ ]
MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.
MASTR ADJUSTABLE RATE MORTGAGES TRUST 2003-1
Mortgage Pass-Through Certificates, Series 2003-1
Class [B-1] [B-2] [B-3]
evidencing a percentage interest in the distributions allocable to
the Certificates of the above-referenced Class with respect to a
Trust Fund consisting primarily of four pools of conventional loans
(the "Mortgage Loans") secured by first liens on one- to four-family
residential properties
Mortgage Asset Securitization Transactions, Inc., as Depositor
Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance at any time may
be less than the Certificate Principal Balance as set forth herein. This
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Servicer or the Trustee referred to below or
any of their respective affiliates. Neither this Certificate nor the Mortgage
Loans are guaranteed or insured by any governmental agency or instrumentality.
This certifies that is the registered owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the aggregate initial Class Principal Balances of all
Certificates of the Class to which this Certificate belongs) in certain monthly
distributions with respect to a Trust Fund consisting primarily of the Mortgage
Loans deposited by Mortgage Asset Securitization Transactions, Inc. (the
"Depositor"). The Trust Fund was created pursuant to a Pooling and Servicing
Agreement dated as of the Cut-off Date specified above (the "Agreement") among
the Depositor, UBS Warburg Real Estate Securities Inc., as transferor (the
"Transferor"), Xxxxx Fargo Bank Minnesota, N.A., as master servicer (the
"Servicer"), and JPMorgan Chase Bank, as trustee (the "Trustee"). To the extent
not defined herein, the capitalized terms used herein have the meanings assigned
in the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.
Reference is hereby made to the further provisions of this
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.
This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: January __, 2003
JPMORGAN CHASE BANK,
as Trustee
By:____________________________________
Countersigned:
By:___________________________
Authorized Signatory of
JPMORGAN CHASE BANK,
as Trustee
EXHIBIT B-2
(FORM OF CLASS 4-B CERTIFICATE)
Unless this certificate is presented by an authorized representative
of The Depository Trust Company, a New York corporation ("DTC"), to Issuer or
its agent for registration of transfer, exchange, or payment, and any
certificate issued is registered in the name of Cede & Co. or in such other name
as is requested by an authorized representative of DTC (and any payment is made
to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").
THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO CERTAIN
CERTIFICATES AS DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.
Certificate No.: 4-B-1
Cut-off Date: January 1, 2003
First Distribution Date: February 25, 2003
Last Scheduled Distribution Date: December 25, 2032
Pass-Through Rate: Floating
in accordance
with the Agreement
Initial Certificate Principal Balance of this Certificate $1,845,623
("Denomination"):
Initial Certificate Principal Balances of all Certificates $[________]
of this Class:
CUSIP: 576433 CV 6
ISIN: US576433CV64
MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.
MASTR ADJUSTABLE RATE MORTGAGES TRUST 2003-1
Mortgage Pass-Through Certificates, Series 2003-1
Class 4-B
evidencing a percentage interest in the distributions allocable to
the Certificates of the above-referenced Class with respect to a
Trust Fund consisting primarily of four pools of conventional
mortgage loans (the "Mortgage Loans") secured by first liens on one-
to four-family residential properties
Mortgage Asset Securitization Transactions, Inc., as Depositor
Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance at any time may
be less than the Certificate Principal Balance as set forth herein. This
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Servicer or the Trustee referred to below or
any of their respective affiliates. Neither this Certificate nor the Mortgage
Loans are guaranteed or insured by any governmental agency or instrumentality.
This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Certificate (obtained by dividing the
Denomination of this Certificate by the aggregate initial Class Principal
Balances of all Certificates of the Class to which this Certificate belongs) in
certain monthly distributions with respect to a Trust Fund consisting primarily
of the Mortgage Loans deposited by Mortgage Asset Securitization Transactions,
Inc. (the "Depositor"). The Trust Fund was created pursuant to a Pooling and
Servicing Agreement dated as of the Cut-off Date specified above (the
"Agreement") among the Depositor, UBS Warburg Real Estate Securities Inc., as
transferor (the "Transferor"), Xxxxx Fargo Bank Minnesota, N.A., as master
servicer (the "Servicer"), and JPMorgan Chase Bank, as trustee (the "Trustee").
Distributions on this Certificate will be made from collections on the Group 4
Mortgage Loans. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.
Reference is hereby made to the further provisions of this
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.
This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: January ___, 2003
JPMORGAN CHASE BANK,
as Trustee
By:____________________________________
Countersigned:
By:___________________________
Authorized Signatory of
JPMORGAN CHASE BANK,
as Trustee
EXHIBIT C
(FORM OF CLASS B-4, CLASS B-5 OR CLASS B-6 CERTIFICATES)
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").
THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO CERTAIN
CERTIFICATES AS DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.
THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "ACT"). ANY RESALE OR TRANSFER OF THIS CERTIFICATE WITHOUT
REGISTRATION THEREOF UNDER THE ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPTED
FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.
THE HOLDER OF THIS CERTIFICATE BY ITS ACCEPTANCE HEREOF AGREES NOT
TO OFFER, SELL OR OTHERWISE TRANSFER SUCH CERTIFICATE EXCEPT IN ACCORDANCE WITH
ALL APPLICABLE STATE SECURITIES LAWS AND (A) PURSUANT TO A REGISTRATION
STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE ACT, (B) FOR SO LONG AS
THIS CERTIFICATE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE ACT
("RULE 144A"), TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A "QUALIFIED
INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A, (C) TO AN INSTITUTIONAL "ACCREDITED INVESTOR" WITHIN
THE MEANING OF RULE 501 (A)(1), (2), (3) OR (7) OF REGULATION D UNDER THE ACT IN
A TRANSACTION EXEMPT FROM THE REGISTRATION REQUIREMENTS UNDER THE ACT, OR (D)
PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
THE ACT, SUBJECT IN EACH OF THE FOREGOING CASES TO THE COMPLETION AND DELIVERY
BY THE TRANSFEROR TO THE TRUSTEE OF A CERTIFICATE OF TRANSFER IN THE FORM
APPEARING ON THE LAST PAGE OF THIS CERTIFICATE.
NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED
UNLESS THE TRANSFEREE REPRESENTS TO THE TRUSTEE THAT SUCH TRANSFEREE IS NOT AN
EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED, OR A PLAN SUBJECT TO SECTION 4975 OF THE CODE,
OR A PLAN SUBJECT TO ANY FEDERAL, STATE OR LOCAL LAW ("SIMILAR LAW") MATERIALLY
SIMILAR TO THE FOREGOING PROVISIONS OF ERISA OR THE CODE, DELIVERS TO THE
TRUSTEE A REPRESENTATION LETTER OR AN OPINION OF COUNSEL IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN. (SUCH REPRESENTATION SHALL BE
DEEMED TO HAVE BEEN MADE TO THE TRUSTEE BY THE TRANSFEREE'S ACCEPTANCE OF A
CERTIFICATE OF THIS CLASS AND BY A BENEFICIAL OWNER'S ACCEPTANCE OF ITS INTEREST
IN A CERTIFICATE OF THIS CLASS.) NOTWITHSTANDING ANYTHING ELSE TO THE CONTRARY
HEREIN, ANY PURPORTED TRANSFER OF THIS CERTIFICATE TO OR ON BEHALF OF AN
EMPLOYEE BENEFIT PLAN SUBJECT TO ERISA, THE CODE OR SIMILAR LAW WITHOUT THE
OPINION OF COUNSEL SATISFACTORY TO THE TRUSTEE AS DESCRIBED ABOVE SHALL BE VOID
AND OF NO EFFECT.
Certificate No.: [B-4-1] [B-5-1]
[B-6-1]
Cut-off Date: January 1, 2003
First Distribution Date: February 25, 2003
Last Scheduled Distribution Date: December 25, 2032
Pass-Through Rate: Floating
in accordance with
the Agreement
Initial Certificate Principal Balance of this B-4 [________]
Certificate ("Denomination"): B-5 [________]
B-6 [________]
Initial Certificate Principal Balances of all B-4 $327,000
Certificates of this Class: B-5 $245,000
B-6 $327,011
CUSIP: B-4 [ ]
B-5 [ ]
B-6 [ ]
ISIN: B-4 [ ]
B-5 [ ]
B-6 [ ]
MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.
MASTR ADJUSTABLE RATE MORTGAGES TRUST 2003-1
Mortgage Pass-Through Certificates, Series 2003-1
Class [B-4] [B-5] [B-6]
evidencing a percentage interest in the distributions allocable to
the Certificates of the above-referenced Class with respect to a
Trust Fund consisting primarily of four pools of conventional loans
(the "Mortgage Loans") secured by first liens on one- to four-family
residential properties
Mortgage Asset Securitization Transactions, Inc., as Depositor
Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance at any time may
be less than the Certificate Principal Balance as set forth herein. This
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Servicer or the Trustee referred to below or
any of their respective affiliates. Neither this Certificate nor the Mortgage
Loans are guaranteed or insured by any governmental agency or instrumentality.
This certifies that is the registered owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the aggregate initial Class Principal Balances of all
Certificates of the Class to which this Certificate belongs) in certain monthly
distributions with respect to a Trust Fund consisting primarily of the Mortgage
Loans deposited by Mortgage Asset Securitization Transactions, Inc. (the
"Depositor"). The Trust Fund was created pursuant to a Pooling and Servicing
Agreement dated as of the Cut-off Date specified above (the "Agreement") among
the Depositor, UBS Warburg Real Estate Securities Inc., as transferor (the
"Transferor"), Xxxxx Fargo Bank Minnesota, N.A., as master servicer (the
"Servicer"), and JPMorgan Chase Bank, as trustee (the "Trustee"). To the extent
not defined herein, the capitalized terms used herein have the meanings assigned
in the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.
No transfer of a Certificate of this Class shall be made unless such
transfer is made pursuant to an effective registration statement under the
Securities Act and any applicable state securities laws or is exempt from the
registration requirements under said Act and such laws. In the event that a
transfer is to be made in reliance upon an exemption from the Securities Act and
such laws, in order to assure compliance with the Securities Act and such laws,
the Certificateholder desiring to effect such transfer and such
Certificateholder's prospective transferee shall each certify to the Trustee in
writing the facts surrounding the transfer. In the event that such a transfer is
to be made within three years from the date of the initial issuance of
Certificates pursuant hereto, there shall also be delivered (except in the case
of a transfer pursuant to Rule 144A of the Securities Act) to the Trustee an
Opinion of Counsel that such transfer may be made pursuant to an exemption from
the Securities Act and such state securities laws, which Opinion of Counsel
shall not be obtained at the expense of the Trustee, the Trust Fund, or the
Depositor. The Holder hereof desiring to effect such transfer shall, and does
hereby agree to, indemnify the Trustee and the Depositor against any liability
that may result if the transfer is not so exempt or is not made in accordance
with such federal and state laws.
No transfer of a Certificate of this Class shall be made unless the
Trustee shall have received either (i) a representation (letter) from the
transferee of such Certificate, acceptable to and in form and substance
satisfactory to the Trustee, to the effect that such transferee is not an
employee benefit plan subject to Title I of ERISA, Section 4975 of the Code, or
a plan subject to any federal, state or local law ("Similar Law") materially
similar to the foregoing provisions of ERISA or the Code, nor a person acting on
behalf of any such plan, which representation letter shall not be an expense of
the Trustee or the Servicer, (ii) if the purchaser is an insurance company, a
representation that the purchaser is an insurance company which is purchasing
such Certificates with funds contained in an "insurance company general account"
(as such term is defined in Section V(e) of Prohibited Transaction Class
Exemption 95-60 ("PTCE 95-60")) and that the purchase and holding of such
Certificates are covered under Sections I and III of PTCE 95-60, or (iii) in the
case of any such Certificate presented for registration in the name of an
employee benefit plan subject to ERISA, Section 4975 of the Code or Similar Law
(or comparable provisions of any subsequent enactments), or a trustee of any
such plan or any other person acting on behalf of any such plan, an Opinion of
Counsel satisfactory to the Trustee and the Servicer to the effect that the
purchase or holding of such Certificate will not result in the assets of the
Trust Fund being deemed to be "plan assets" and subject to the prohibited
transaction provisions of ERISA and the Code or similar provisions of Similar
Law and will not subject the Trustee to any obligation in addition to those
undertaken in the Agreement, which Opinion of Counsel shall not be an expense of
the Trustee or the Servicer. (Such representation shall be deemed to have been
made to the Trustee by the Transferee's acceptance of a Certificate of this
Class and by a beneficial owner's acceptance of its interest in a Certificate of
this Class.) Notwithstanding anything else to the contrary herein, any purported
transfer of a Certificate of this Class to or on behalf of an employee benefit
plan subject to ERISA, the Code or Similar Law without the opinion of counsel
satisfactory to the Trustee as described above shall be void and of no effect.
Reference is hereby made to the further provisions of this
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.
This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: January __, 2003
JPMORGAN CHASE BANK,
as Trustee
By:____________________________________
Countersigned:
By:___________________________
Authorized Signatory of
JPMORGAN CHASE BANK,
as Trustee
EXHIBIT D
(FORM OF CLASS 4-X CERTIFICATE)
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER ASSETS.
THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO CERTAIN
CERTIFICATES AS DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.
THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "ACT"). ANY RESALE OR TRANSFER OF THIS CERTIFICATE WITHOUT
REGISTRATION THEREOF UNDER THE ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPTED
FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.
THE HOLDER OF THIS CERTIFICATE BY ITS ACCEPTANCE HEREOF AGREES NOT
TO OFFER, SELL OR OTHERWISE TRANSFER SUCH CERTIFICATE EXCEPT IN ACCORDANCE WITH
ALL APPLICABLE STATE SECURITIES LAWS AND (A) PURSUANT TO A REGISTRATION
STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE ACT, (B) FOR SO LONG AS
THIS CERTIFICATE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE ACT
("RULE 144A"), TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A "QUALIFIED
INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A, (C) TO AN INSTITUTIONAL "ACCREDITED INVESTOR" WITHIN
THE MEANING OF RULE 501 (A)(1), (2), (3) OR (7) OF REGULATION D UNDER THE ACT IN
A TRANSACTION EXEMPT FROM THE REGISTRATION REQUIREMENTS UNDER THE ACT, OR (D)
PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
THE ACT, SUBJECT IN EACH OF THE FOREGOING CASES TO THE COMPLETION AND DELIVERY
BY THE TRANSFEROR TO THE TRUSTEE OF A CERTIFICATE OF TRANSFER IN THE FORM
APPEARING ON THE LAST PAGE OF THIS CERTIFICATE.
NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED
UNLESS THE TRANSFEREE DELIVERS TO THE TRUSTEE EITHER A REPRESENTATION LETTER TO
THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR A PLAN
SUBJECT TO SECTION 4975 OF THE CODE, OR, IF THE TRANSFEREE IS AN INSURANCE
COMPANY, A REPRESENTATION LETTER THAT IT IS USING THE ASSETS OF ITS GENERAL
ACCOUNT AND THAT THE PURCHASE AND HOLDING OF THIS CERTIFICATE ARE COVERED UNDER
SECTIONS I AND III OF PROHIBITED TRANSACTION CLASS EXEMPTION 95-60 OR AN OPINION
OF COUNSEL SATISFACTORY TO THE TRUSTEE AND THE SERVICER, TO THE EFFECT THAT THE
PURCHASE OR HOLDING OF THIS CERTIFICATE WILL NOT RESULT IN THE ASSETS OF THE
TRUST FUND BEING DEEMED TO BE "PLAN ASSETS" AND SUBJECT TO THE PROHIBITED
TRANSACTION PROVISIONS OF ERISA AND THE CODE OR SIMILAR VIOLATION OF SIMILAR LAW
AND WILL NOT SUBJECT THE TRUSTEE OR THE SERVICER TO ANY OBLIGATION IN ADDITION
TO THOSE EXPRESSLY UNDERTAKEN IN THIS AGREEMENT OR TO ANY LIABILITY.
NOTWITHSTANDING ANYTHING ELSE TO THE CONTRARY HEREIN, ANY PURPORTED TRANSFER OF
THIS CERTIFICATE TO OR ON BEHALF OF AN EMPLOYEE BENEFIT PLAN SUBJECT TO ERISA OR
TO THE CODE WITHOUT THE REPRESENTATION LETTER AS DESCRIBED ABOVE SHALL BE VOID
AND OF NO EFFECT.
Certificate No. : 4-X-1
Cut-off Date : January 1, 2003
First Distribution Date : February 25, 2003
Initial Certificate December 25, 2032
Principal Balance of this
Certificate :
Initial Certificate As set forth in the Agreement
Principal Balances of all
Certificates of this Class :
Initial Notional Amount of $[_________]
this Certificate :
Initial Notional Amount of $922,811.62
all Certificates of this
Class :
Percentage Interest of this 100%
Certificate ("Denomination") :
CUSIP : 576433 CZ 7
ISIN : US576433CZ78
MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.
MASTR ADJUSTABLE RATE MORTGAGES TRUST 2003-1
Mortgage Pass-Through Certificates, Series 2003-1
Class 4-X
evidencing a percentage interest in the distributions allocable to
the Certificates of the above-referenced Class with respect to a
Trust Fund consisting primarily of a pool of conventional mortgage
loans (the "Mortgage Loans") secured by first liens on one- to
four-family residential properties
Mortgage Asset Securitization Transactions, Inc., as Depositor
Distributions in respect of this Certificate are distributable
monthly as set forth herein. This Certificate does not evidence an obligation
of, or an interest in, and is not guaranteed by the Depositor, the Servicer or
the Trustee referred to below or any of their respective affiliates. Neither
this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.
This certifies that UBS Warburg LLC is the registered owner of the
Percentage Interest evidenced by this Certificate (obtained by dividing the
Denomination of this Certificate by the aggregate initial Class Principal
Balances of all Certificates of the Class to which this Certificate belongs) in
certain monthly distributions with respect to a Trust Fund consisting primarily
of the Mortgage Loans deposited by Mortgage Asset Securitization Transactions,
Inc. (the "Depositor"). The Trust Fund was created pursuant to a Pooling and
Servicing Agreement dated as of the Cut-off Date specified above (the
"Agreement") among the Depositor, UBS Warburg Real Estate Securities Inc., as
transferor (the "Transferor"), Xxxxx Fargo Bank Minnesota, N.A., as master
servicer (the "Servicer") and JPMorgan Chase Bank, as trustee (the "Trustee").
Distributions on this Certificate will be made primarily from collections on the
Group 4 Mortgage Loans pursuant to the terms of the Agreement. To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.
No transfer of a Certificate of this Class shall be made unless such
transfer is made pursuant to an effective registration statement under the
Securities Act and any applicable state securities laws or is exempt from the
registration requirements under said Act and such laws. In the event that a
transfer is to be made in reliance upon an exemption from the Securities Act and
such laws, in order to assure compliance with the Securities Act and such laws,
the Certificateholder desiring to effect such transfer and such
Certificateholder's prospective transferee shall each certify to the Trustee in
writing the facts surrounding the transfer. In the event that such a transfer is
to be made within three years from the date of the initial issuance of
Certificates pursuant hereto, there shall also be delivered (except in the case
of a transfer pursuant to Rule 144A of the Securities Act) to the Trustee an
Opinion of Counsel that such transfer may be made pursuant to an exemption from
the Securities Act and such state securities laws, which Opinion of Counsel
shall not be obtained at the expense of the Trustee, the Servicer, or the
Depositor. The Holder hereof desiring to effect such transfer shall, and does
hereby agree to, indemnify the Trustee and the Depositor against any liability
that may result if the transfer is not so exempt or is not made in accordance
with such federal and state laws.
No transfer of a Certificate of this Class shall be made unless the
Trustee shall have received either (i) a representation (letter) from the
transferee of such Certificate, acceptable to and in form and substance
satisfactory to the Trustee, to the effect that such transferee is not an
employee benefit plan subject to Title I of ERISA, Section 4975 of the Code, or
a plan subject to any federal, state or local law ("Similar Law") materially
similar to the foregoing provisions of ERISA or the Code, nor a person acting on
behalf of any such plan, which representation letter shall not be an expense of
the Trustee or the Servicer, (ii) if the purchaser is an insurance company, a
representation that the purchaser is an insurance company which is purchasing
such Certificates with funds contained in an "insurance company general account"
(as such term is defined in Section V(e) of Prohibited Transaction Class
Exemption 95-60 ("PTCE 95-60")) and that the purchase and holding of such
Certificates are covered under Sections I and III of PTCE 95-60, or (iii) in the
case of any such Certificate presented for registration in the name of an
employee benefit plan subject to ERISA, Section 4975 of the Code or Similar Law
(or comparable provisions of any subsequent enactments), or a trustee of any
such plan or any other person acting on behalf of any such plan, an Opinion of
Counsel satisfactory to the Trustee and the Servicer to the effect that the
purchase or holding of such Certificate will not result in the assets of the
Trust Fund being deemed to be "plan assets" and subject to the prohibited
transaction provisions of ERISA and the Code or similar provisions of Similar
Law and will not subject the Trustee to any obligation in addition to those
undertaken in the Agreement, which Opinion of Counsel shall not be an expense of
the Trustee or the Servicer. (Such representation shall be deemed to have been
made to the Trustee by the Transferee's acceptance of a Certificate of this
Class and by a beneficial owner's acceptance of its interest in a Certificate of
this Class.) Notwithstanding anything else to the contrary herein, any purported
transfer of a Certificate of this Class to or on behalf of an employee benefit
plan subject to ERISA, the Code or Similar Law without the opinion of counsel
satisfactory to the Trustee as described above shall be void and of no effect.
Reference is hereby made to the further provisions of this
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.
This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: January ___, 2003
JPMORGAN CHASE BANK,
as Trustee
By:____________________________________
Countersigned:
By:___________________________
Authorized Signatory of
JPMORGAN CHASE BANK,
as Trustee
EXHIBIT E
(Form of Reverse of Certificates)
MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.
MASTR ADJUSTABLE RATE MORTGAGES TRUST 2003-1
Mortgage Pass-Through Certificates, Series 2003-1
This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Asset Securitization Transactions, Inc., MASTR Adjustable
Rate Mortgages Trust 2003-1, Mortgage Pass-Through Certificates, of the Series
specified on the face hereof (herein collectively called the "Certificates"),
and representing a beneficial ownership interest in the Trust Fund created by
the Agreement.
The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.
This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.
Pursuant to the terms of the Agreement, a distribution will be made
on the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (the "Distribution Date"), commencing on the
first Distribution Date specified on the face hereof, to the Person in whose
name this Certificate is registered at the close of business on the applicable
Record Date in an amount equal to the product of the Percentage Interest
evidenced by this Certificate and the amount required to be distributed to
Holders of Certificates of the Class to which this Certificate belongs on such
Distribution Date pursuant to the Agreement. The Record Date applicable to each
Distribution Date is the last Business Day of the month next preceding the month
of such Distribution Date.
Distributions on this Certificate shall be made by wire transfer of
immediately available funds to the account of the Holder hereof at a bank or
other entity having appropriate facilities therefor, if such Certificateholder
shall have so notified the Trustee in writing at least five Business Days prior
to the related Record Date and such Certificateholder shall satisfy the
conditions to receive such form of payment set forth in the Agreement, or, if
not, by check mailed by first class mail to the address of such
Certificateholder appearing in the Certificate Register. The final distribution
on each Certificate will be made in like manner, but only upon presentment and
surrender of such Certificate at the Office of the Trustee or such other
location specified in the notice to Certificateholders of such final
distribution.
The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Transferor, the Depositor, the Servicer and the Trustee with the consent
of the Holders of Certificates affected by such amendment evidencing the
requisite Percentage Interest, as provided in the Agreement. Any such consent by
the Holder of this Certificate shall be conclusive and binding on such Holder
and upon all future Holders of this Certificate and of any Certificate issued
upon the transfer hereof or in exchange therefor or in lieu hereof whether or
not notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.
As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register of the Trustee upon surrender of this Certificate for
registration of transfer at the Corporate Trust Office of the Trustee,
accompanied by a written instrument of transfer in form satisfactory to the
Trustee and the Certificate Registrar duly executed by the holder hereof or such
holder's attorney duly authorized in writing, and thereupon one or more new
Certificates of the same Class in authorized denominations and evidencing the
same aggregate Percentage Interest in the Trust Fund will be issued to the
designated transferee or transferees.
The Certificates are issuable only as registered Certificates
without coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.
No service charge will be made for any such registration of transfer
or exchange, but the Trustee may require payment of a sum sufficient to cover
any tax or other governmental charge payable in connection therewith.
The Depositor, the Servicer, and the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and neither the
Depositor, the Servicer, the Trustee, nor any such agent shall be affected by
any notice to the contrary.
[[If Certificate is a Non-Group 4 Certificate] On any Distribution
Date on which the Non-Group 4 Pool Principal Balance is less than 5% of
Non-Group 4 Pool Principal Balance as of the Cut-off Date, the Servicer will
have the option to repurchase, in whole, from the Trust Fund all remaining
Non-Group 4 Mortgage Loans and all property acquired in respect of the Non-Group
4 Mortgage Loans at a purchase price determined as provided in the Agreement. In
the event that no such optional termination occurs, the obligations and
responsibilities created by the Agreement will terminate upon the later of the
maturity or other liquidation (or any advance with respect thereto) of the last
Non-Group 4 Mortgage Loan remaining in the Trust Fund or the disposition of all
property in respect thereof and the distribution to Certificateholders of all
amounts required to be distributed pursuant to the Agreement. In no event,
however, will the trust created by the Agreement continue beyond the expiration
of 21 years from the death of the last survivor of the descendants living at the
date of the Agreement of a certain person named in the Agreement.]
[[If Certificate is a Group 4 Certificate] On any Distribution Date
on which the Group 4 Pool Principal Balance is less than 10% of the Group 4 Pool
Principal Balance as of the Cut-off Date, the Servicer will have the option to
repurchase, in whole, from the Trust Fund all remaining Group 4 Mortgage Loans
and all property acquired in respect of the Group 4 Mortgage Loans at a purchase
price determined as provided in the Agreement. In the event that no such
optional termination occurs, the obligations and responsibilities created by the
Agreement will terminate upon the later of the maturity or other liquidation (or
any advance with respect thereto) of the last Group 4 Mortgage Loan remaining in
the Trust Fund or the disposition of all property in respect thereof and the
distribution to Certificateholders of all amounts required to be distributed
pursuant to the Agreement. In no event, however, will the trust created by the
Agreement continue beyond the expiration of 21 years from the death of the last
survivor of the descendants living at the date of the Agreement of a certain
person named in the Agreement.]
Any term used herein that is defined in the Agreement shall have the
meaning assigned in the Agreement, and nothing herein shall be deemed
inconsistent with that meaning.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto
___________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name and address including postal zip code of
assignee) the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust Fund.
I (We) further direct the Trustee to issue a new Certificate of a
like denomination and Class, to the above named assignee and deliver such
Certificate to the following address:
Dated:
----------------------------------------
Signature by or on behalf of assignor
DISTRIBUTION INSTRUCTIONS
The assignee should include the following for purposes of
distribution:
Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
for the account of
______________________________________________________________, account number
______________, or, if mailed by check, to ____________________________________.
Statements should be mailed to _________________________________________________
This information is provided by, the assignee named above, or , as
its agent.
STATE OF )
) ss.:
COUNTY OF )
On the day of _______, 200_ before me, a notary public in and for
said State, personally appeared ___________________________________, known to me
who, being by me duly sworn, did depose and say that he executed the foregoing
instrument.
--------------------------------
Notary Public
[Notarial Seal]
EXHIBIT F
FORM OF INITIAL CERTIFICATION OF MASTER SERVICER
[date]
Mortgage Asset Securitization Transactions, Inc.
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, XX 00000
JPMorgan Chase Bank
Institutional Trust Service
0 Xxx Xxxx Xxxxx, 0xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
UBS Warburg Real Estate Securities Inc.
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Re: Pooling and Servicing Agreement among Mortgage Asset Securitization
Transactions, Inc., as depositor, UBS Warburg Real Estate Securities Inc.,
as transferor, Xxxxx Fargo Bank Minnesota, N.A., as master servicer (the
"Master Servicer") and custodian, and JPMorgan Chase Bank, as trustee, in
connection with MASTR Adjustable Rate Mortgages Trust 2003-1, Mortgage
Pass-Through Certificates, Series 0000-0
Xxxxxxxxx:
In accordance with Section 2.02 of the above-captioned Pooling and
Servicing Agreement (the "Pooling and Servicing Agreement"), the undersigned, as
Master Servicer acting on behalf of the Trustee, hereby certifies that, as to
each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage
Loan paid in full or any Mortgage Loan listed on the attached schedule) it has
received:
(i) (a) the original Mortgage Note or (b) with respect to any Lost
Mortgage Note, a lost note affidavit from the Depositor stating that the
original Mortgage Note was lost or destroyed; and
(ii) a duly executed assignment of the Mortgage (which may be
included in a blanket assignment or assignments).
Based on its review and examination and only as to the foregoing
documents, such documents appear regular on their face and related to such
Mortgage Loan.
The Master Servicer has made no independent examination of any
documents contained in each Mortgage File beyond the review specifically
required in the Pooling and Servicing Agreement. The Master Servicer makes no
representations as to: (i) the validity, legality, sufficiency, enforceability
or genuineness of any of the documents contained in each Mortgage File of any of
the Mortgage Loans identified on the Mortgage Loan Schedule, or (ii) the
collectability, insurability, effectiveness or suitability of any such Mortgage
Loan.
Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Pooling and Servicing Agreement.
XXXXX FARGO BANK MINNESOTA, N.A.,
as Master Servicer
By:____________________________________
Name:
Title:
EXHIBIT G
FORM OF FINAL CERTIFICATION OF MASTER SERVICER
[date]
Mortgage Asset Securitization Transactions, Inc.
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, XX 00000
JPMorgan Chase Bank
Institutional Trust Services
0 Xxx Xxxx Xxxxx, 0xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
UBS Warburg Real Estate Securities Inc.
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Re: Pooling and Servicing Agreement among Mortgage Asset Securitization
Transactions, Inc., as depositor, UBS Warburg Real Estate Securities Inc.,
as transferor, Xxxxx Fargo Bank Minnesota, N.A., as master servicer (the
"Master Servicer") and custodian, and JPMorgan Chase Bank, as trustee, in
connection with MASTR Adjustable Rate Mortgages Trust 2003-1, Mortgage
Pass-Through Certificates, Series 0000-0
Xxxxxxxxx:
In accordance with Section 2.02 of the above-captioned Pooling and
Servicing Agreement (the "Pooling and Servicing Agreement"), the undersigned, as
Master Servicer, acting on behalf of the Trustee, hereby certifies that as to
each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage
Loan paid in full or listed on the attached Document Exception Report) it has
received:
(i) the original Mortgage Note endorsed in the form provided in
Section 2.01(c) of the Pooling and Servicing Agreement, with all intervening
endorsements showing a complete chain of endorsement from the transferor to the
Depositor.
(ii) The original recorded Mortgage.
(iii) A duly executed assignment of the Mortgage in the form
provided in Section 2.01(b) of the Pooling and Servicing Agreement, or, if the
Depositor has certified or the Master Servicer otherwise knows that the related
Mortgage has not been returned from the applicable recording office, a copy of
the assignment of the Mortgage (excluding information to be provided by the
recording office).
(iv) The original or duplicate original recorded assignment or
assignments of the Mortgage showing a complete chain of assignment from the
originator to the Depositor.
(v) The original or duplicate original lender's title policy and all
riders thereto or, any one of an original title binder, an original preliminary
title report or an original title commitment, or a copy thereof certified by the
title company.
Based on its review and examination and only as to the foregoing
documents, (a) such documents appear regular on their face and related to such
Mortgage Loan, and (b) the information set forth in items (1), (2), (3), (4),
(9), (16), and (21) of the definition of the "Mortgage Loan Schedule" in Section
1.01 of the Pooling and Servicing Agreement accurately reflects information set
forth in the Mortgage File.
The Master Servicer on behalf of the Trustee has made no independent
examination of any documents contained in each Mortgage File beyond the review
specifically required in the Pooling and Servicing Agreement. The Master
Servicer on behalf of the Trustee makes no representations as to: (i) the
validity, legality, sufficiency, enforceability or genuineness of any of the
documents contained in each Mortgage File of any of the Mortgage Loans
identified on the Mortgage Loan Schedule, or (ii) the collectability,
insurability, effectiveness or suitability of any such Mortgage Loan.
Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Pooling and Servicing Agreement.
XXXXX FARGO BANK MINNESOTA, N.A.,
as Master Servicer
By:____________________________________
Name:
Title:
EXHIBIT H
FORM OF CLASS A-R TRANSFER AFFIDAVIT
MASTR ADJUSTABLE RATE MORTGAGES TRUST 2003-1
Mortgage Asset Securitization Transactions, Inc.
Mortgage Pass-Through Certificates
Series 2003-1
STATE OF )
) ss.:
COUNTY OF )
The undersigned, being first duly sworn, deposes and says as
follows:
1. The undersigned is an officer of _______, the proposed Transferee
of an Ownership Interest in a Class A-R Certificate (the "Certificate") issued
pursuant to the Pooling and Servicing Agreement dated as of January 1, 2003 (the
"Agreement") among Mortgage Asset Securitization Transactions, Inc., as
depositor, UBS Warburg Real Estate Securities Inc., as transferor (the
"Transferor"), Xxxxx Fargo Bank Minnesota, N.A., as master servicer (the "Master
Servicer"), and JPMorgan Chase Bank, as trustee (the "Trustee"). Capitalized
terms used, but not defined herein or in Exhibit 1 hereto, shall have the
meanings ascribed to such terms in the Agreement. The Transferee has authorized
the undersigned to make this affidavit on behalf of the Transferee.
2. The Transferee is, as of the date hereof, and will be, as of the
date of the Transfer, a Permitted Transferee. The Transferee is acquiring its
Ownership Interest in the Certificate either (i) for its own account or (ii) as
nominee, trustee or agent for another Person and has attached hereto an
affidavit from such Person in substantially the same form as this affidavit. The
Transferee has no knowledge that any such affidavit is false. 3. The Transferee
has been advised of, and understands that (i) a tax will be imposed on Transfers
of the Certificate to Persons that are Disqualified Organizations; (ii) such tax
will be imposed on the transferor, or, if such Transfer is through an agent
(which includes a broker, nominee or middleman) for a Person that is a
Disqualified Organization, on the agent; and (iii) the Person otherwise liable
for the tax shall be relieved of liability for the tax if the subsequent
Transferee furnished to such Person an affidavit that such subsequent Transferee
is not a Disqualified Organization and, at the time of Transfer, such Person
does not have actual knowledge that the affidavit is false.
4. The Transferee has been advised of, and understands that a tax
will be imposed on a "pass-through entity" holding the Certificate if at any
time during the taxable year of the pass-through entity a Person that is a
Disqualified Organization is the record holder of an interest in such entity.
The Transferee understands that such tax will not be imposed for any period with
respect to which the record holder furnishes to the pass-through entity an
affidavit that such record holder is not a Disqualified Organization and the
pass-through entity does not have actual knowledge that such affidavit is false;
provided, that a pass-through entity which is an "electing large partnership"
under the Code will be subject to tax in all events. (For this purpose, a
"pass-through entity" includes a regulated investment company, a real estate
investment trust or common trust fund, a partnership, trust or estate, and
certain cooperatives and, except as may be provided in Treasury Regulations,
persons holding interests in pass-through entities as a nominee for another
Person.) The Transferee further understands that it may incur tax liabilities
with respect to the holding of the Certificate in excess of cash flows generated
thereby.
5. The Transferee has reviewed the provisions of Section 5.02(c) of
the Agreement (attached hereto as Exhibit 2 and incorporated herein by
reference) and understands the legal consequences of the acquisition of an
Ownership Interest in the Certificate including, without limitation, the
restrictions on subsequent Transfers and the provisions regarding voiding the
Transfer and mandatory sales. The Transferee expressly agrees to be bound by and
to abide by the provisions of Section 5.02(c) of the Agreement and the
restrictions noted on the face of the Certificate. The Transferee understands
and agrees that any breach of any of the representations included herein shall
render the Transfer to the Transferee contemplated hereby null and void.
6. The Transferee agrees to require a Transfer Affidavit from any
Person to whom the Transferee attempts to Transfer its Ownership Interest in the
Certificate, and in connection with any Transfer by a Person for whom the
Transferee is acting as nominee, trustee or agent, and the Transferee will not
Transfer its Ownership Interest or cause any Ownership Interest to be
Transferred to any Person that the Transferee knows is not a Permitted
Transferee. In connection with any such Transfer by the Transferee, the
Transferee agrees to deliver to the Trustee a certificate substantially in the
form set forth as Exhibit I to the Agreement (a "Transferor Certificate") to the
effect that such Transferee has no actual knowledge that the Person to which the
Transfer is to be made is not a Permitted Transferee.
7. The Transferee does not have the intention to impede the
assessment or collection of any tax legally required to be paid with respect to
the Certificate. The Transferee historically has paid its debts as they have
become due and intends to do so in the future. The Transferee understands that
the taxable income and tax liability with respect to this Certificate will
exceed distributions with respect to the Certificate in some or all periods and
intends to pay all taxes with respect to the Certificate as they become due.
8. The Transferee's taxpayer identification number is __________.
9. The Transferee is a U.S. Person as defined in Code Section
7701(a)(30) or is not a U.S. Person and has furnished the Transferor and the
Trustee with a duly completed Internal Revenue Service Form W-8ECI or any
applicable successor form.
10. The Transferee is aware that the Certificate may be a
"noneconomic residual interest" within the meaning of Treasury regulations
promulgated pursuant to the Code and that the transferor of a noneconomic
residual interest will remain liable for any taxes due with respect to the
income on such residual interest, unless no significant purpose of the transfer
was to impede the assessment or collection of tax.
11. The Transferee will not cause income with respect to the
Certificate to be attributable to a foreign permanent establishment or fixed
base, within the meaning of an applicable income tax treaty, of the Transferee
or any other Person.
12. Check one of the following paragraphs:
The present value of the anticipated tax liabilities associated with
holding the Certificate, as applicable, does not exceed the sum of:
(i) the present value of any consideration given to the Transferee
to acquire such Certificate;
(ii) the present value of the expected future distributions on such
Certificate; and
(iii) the present value of the anticipated tax savings associated
with holding such Certificate as the related REMIC generates
losses.
For purposes of this calculation, (i) the Transferee is assumed to
pay tax at the highest rate currently specified in Section 11(b) of the Code
(but the tax rate in Section 55(b)(1)(B) of the Code may be used in lieu of the
highest rate specified in Section 11(b) of the Code if the Transferee has been
subject to the alternative minimum tax under Section 55 of the Code in the
preceding two years and will compute its taxable income in the current taxable
year using the alternative minimum tax rate) and (ii) present values are
computed using a discount rate equal to the short-term Federal rate prescribed
by Section 1274(d) of the Code for the month of the transfer and the compounding
period used by the Transferee.
/ / The transfer of the Certificate complies with U.S. Treasury
Regulations Sections 1.860E-1(c)(5) and (6) and, accordingly,
(i) the Transferee is an "eligible corporation," as defined in
U.S. Treasury Regulations Section 1.860E-1(c)(6)(i), as to
which income from the Certificate will only be taxed in the
United States;
(ii) at the time of the transfer, and at the close of the
Transferee's two fiscal years preceding the year of the
transfer, the Transferee had gross assets for financial
reporting purposes (excluding any obligation of a person
related to the Transferee within the meaning of U.S. Treasury
Regulations Section 1.860E-1(c)(6)(i)) in excess of $100
million and net assets in excess of $10 million;
(iii) the Transferee will transfer the Certificate only to another
"eligible corporation," as defined in U.S. Treasury
Regulations Section 1.860E-1(c)(6), (i) in a transaction that
satisfies the requirements of U.S. Treasury Regulations
Sections 1.860E-1(c)(4)(i), (ii) and (iii) and Section
1.860E-1(c)(5); and
(iv) the Transferee determined the consideration paid to it to
acquire the Certificate based on reasonable market assumptions
(including, but not limited to, borrowing and investment
rates, prepayment and loss assumptions, expense and
reinvestment assumptions, tax rates and other factors specific
to the Transferee) that it has determined in good faith.
/ / None of the above.
13. The Transferee is not an employee benefit plan that is subject
to Title I of ERISA or a plan that is subject to Section 4975 of the Code or a
plan subject to any federal, state or local law ("Similar Law") materially
similar to the foregoing provisions of ERISA or the Code, and the Transferee is
not acting on behalf of such a plan.
* * *
IN WITNESS WHEREOF, the Transferee has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
duly authorized officer and its corporate seal to be hereunto affixed, duly
attested, this ____________ day of _____January 30, 2003.
-----------------------------------------
PRINT NAME OF TRANSFEREE
By:____________________________________
Name:
Title:
[Corporate Seal]
ATTEST:
---------------------------------------
[Assistant] Secretary
Personally appeared before me the above-named _______, known or
proved to me to be the same person who executed the foregoing instrument and to
be the __________ of the Transferee, and acknowledged that he executed the same
as his free act and deed and the free act and deed of the Transferee.
Subscribed and sworn before me this day of _______, 200_.
-----------------------------------------
NOTARY PUBLIC
My Commission expires the ______ day of ___,
200_.
EXHIBIT 1
to EXHIBIT H
Certain Definitions
"Disqualified Organization": A Person specified in clauses (i)-(iv)
of the definition of "Permitted Transferee."
"Ownership Interest": As to any Residual Certificate, any ownership
interest in such Certificate, including any interest in such Certificate as the
Holder thereof and any other interest therein, whether direct or indirect, legal
or beneficial.
"Permitted Transferee": Any person other than (i) the United States,
any State or political subdivision thereof, or any agency or instrumentality of
any of the foregoing, (ii) a foreign government, International Organization or
any agency or instrumentality of either of the foregoing, (iii) an organization
(except certain farmers' cooperatives described in Section 521 of the Code)
which is exempt from tax imposed by Chapter 1 of the Code (including the tax
imposed by Section 511 of the Code on unrelated business taxable income) on any
excess inclusions (as defined in Section 860E(c)(l) of the Code) with respect to
any Residual Certificate, (iv) rural electric and telephone cooperatives
described in Section 1381(a)(2)(C) of the Code, (v) a Person that is not a
citizen or resident of the United States, a corporation, partnership (except as
provided in applicable Treasury Regulations), or other entity created or
organized in or under the laws of the United States or any political subdivision
thereof, an estate whose income is subject to United States federal income tax
purposes regardless of its source or a trust if a court within the United States
is able to exercise primary supervision over the administration of the trust and
one or more persons described in this clause (v) have the authority to control
all substantial decisions of the trust (or, to the extent provided in applicable
Treasury Regulations, certain trusts in existence on August 20, 1996 which are
eligible to elect to be treated as United States persons) unless such Person has
furnished the transferor and the Trustee with a duly completed Internal Revenue
Service Form W-8ECI or any applicable successor form, (vi) any Person with
respect to whose income on any residual certificate is attributable to a foreign
permanent establishment or fixed base, within the meaning of an applicable
treaty, of such Person or any other Person and (vii) any other Person so
designated by the Depositor based upon an Opinion of Counsel that the Transfer
of an Ownership Interest in a Residual Certificate to such Person may cause a
REMIC hereunder to fail to qualify as a REMIC at any time that the Certificates
are outstanding. The terms "United States," "State" and "International
Organization" shall have the meanings set forth in Section 7701 of the Code or
successor provisions. A corporation will not be treated as an instrumentality of
the United States or of any State or political subdivision thereof for these
purposes if all of its activities are subject to tax and, with the exception of
the Xxxxxxx Mac, a majority of its board of directors is not selected by such
government unit.
"Person": Any individual, corporation, partnership, limited
liability company, joint venture, association, joint-stock company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.
"Transfer": Any direct or indirect transfer or sale of any Ownership
Interest in a Residual Certificate.
"Transferee": Any Person who is acquiring by Transfer any
Ownership Interest in a Residual Certificate.
EXHIBIT 2
to EXHIBIT H
Section 5.02(c) of the Agreement
Each Person who has or who acquires any Ownership Interest in a
Residual Certificate shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the following provisions, and
the rights of each Person acquiring any Ownership Interest in a Residual
Certificate are expressly subject to the following provisions:
(i) Each Person holding or acquiring any Ownership Interest in a
Residual Certificate shall be a Permitted Transferee and shall promptly notify
the Trustee of any change or impending change in its status as a Permitted
Transferee.
(ii) No Ownership Interest in a Residual Certificate may be
registered on the Closing Date or thereafter transferred, and the Trustee shall
not register the Transfer of any Residual Certificate unless, in addition to the
certificates required to be delivered to the Trustee under subparagraph (b)
above, the Trustee shall have been furnished with an affidavit (a "Transfer
Affidavit") of the initial owner or the proposed transferee in the form attached
hereto as Exhibit H.
(iii) Each Person holding or acquiring any Ownership Interest in a
Residual Certificate shall agree (A) to obtain a Transfer Affidavit from any
other Person to whom such Person attempts to Transfer its Ownership Interest in
a Residual Certificate, (B) to obtain a Transfer Affidavit from any Person for
whom such Person is acting as nominee, trustee or agent in connection with any
Transfer of a Residual Certificate and (C) not to Transfer its Ownership
Interest in a Residual Certificate or to cause the Transfer of an Ownership
Interest in a Residual Certificate to any other Person if it has actual
knowledge that such Person is not a Permitted Transferee.
(iv) Any attempted or purported Transfer of any Ownership Interest
in a Residual Certificate in violation of the provisions of this Section 5.02(c)
shall be absolutely null and void and shall vest no rights in the purported
Transferee. If any purported transferee shall become a Holder of a Residual
Certificate in violation of the provisions of this Section 5.02(c), then the
last preceding Permitted Transferee shall be restored to all rights as Holder
thereof retroactive to the date of registration of Transfer of such Residual
Certificate. The Trustee shall be under no liability to any Person for any
registration of Transfer of a Residual Certificate that is in fact not permitted
by Section 5.02(b) and this Section 5.02(c) or for making any payments due on
such Certificate to the Holder thereof or taking any other action with respect
to such Holder under the provisions of this Agreement so long as the Transfer
was registered after receipt of the related Transfer Affidavit, Transferor
Certificate and either the Rule 144A Letter or the Investment Letter. The
Trustee shall be entitled but not obligated to recover from any Holder of a
Residual Certificate that was in fact not a Permitted Transferee at the time it
became a Holder or, at such subsequent time as it became other than a Permitted
Transferee, all payments made on such Residual Certificate at and after either
such time. Any such payments so recovered by the Trustee shall be paid and
delivered by the Trustee to the last preceding Permitted Transferee of such
Certificate.
(v) The Depositor shall use its best efforts to make available, upon
receipt of written request from the Trustee, all information necessary to
compute any tax imposed under Section 860E(e) of the Code as a result of a
Transfer of an Ownership Interest in a Residual Certificate to any Holder who is
not a Permitted Transferee described in clauses (i) through (iv) of the
definition thereof.
The restrictions on Transfers of a Residual Certificate set forth in
this Section 5.02(c) shall cease to apply (and the applicable portions of the
legend on a Residual Certificate may be deleted) with respect to Transfers
occurring after delivery to the Trustee of an Opinion of Counsel, which Opinion
of Counsel shall not be an expense of the Trust Fund, the Trustee, the Loan
Seller, the Transferors or the Servicer, to the effect that the elimination of
such restrictions will not cause a REMIC hereunder to fail to qualify as a REMIC
at any time that the Certificates are outstanding or result in the imposition of
any tax on the Trust Fund, a Certificateholder or another Person. Each Person
holding or acquiring any Ownership Interest in a Residual Certificate hereby
consents to any amendment of this Agreement which, based on an Opinion of
Counsel furnished to the Trustee, is reasonably necessary (a) to ensure that the
record ownership of, or any beneficial interest in, a Residual Certificate is
not transferred, directly or indirectly, to a Person that is not a Permitted
Transferee and (b) to provide for a means to compel the Transfer of a Residual
Certificate which is held by a Person that is not a Permitted Transferee to a
Holder that is a Permitted Transferee.
EXHIBIT I
FORM OF TRANSFEROR CERTIFICATE
---------------------
Date
Mortgage Asset Securitization Transactions, Inc.
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention:
JPMorgan Chase Bank, as trustee
0 Xxx Xxxx Xxxxx,
0xx Xxxxx,
Xxx Xxxx, Xxx Xxxx 00000
Attention:
Re: Mortgage Asset Securitization Transactions, Inc., MASTR
Adjustable Rate Mortgages 2003-1, Mortgage Pass-Through
Certificates, Series 2003-1, Class A-R
Ladies and Gentlemen:
In connection with our disposition of the above Certificates we
certify that (a) we have not offered or sold any Certificates to, or solicited
offers to buy any Certificates from, any person, or otherwise approached or
negotiated with any person with respect thereto, in a manner that would be
deemed, or taken any other action which would result in, a violation of Section
5 of the Securities Act of 1933, as amended and (b) to the extent we are
disposing of a Class A-R Certificate, (i) we have no knowledge the Transferee is
not a Permitted Transferee, (ii) after conducting a reasonable investigation of
the financial condition of the Transferee, we have no reason to believe that the
Transferee will not pay taxes with respect to the Class A-R Certificate when
due, and (iii) we have no reason to believe that the statements made in
paragraphs 7, 10 and 11 of the Transferee's Transfer Affidavit are false.
Very truly yours,
-----------------------------------------
Print Name of Transferor
By:____________________________________
Authorized Officer
EXHIBIT J
FORM OF INVESTMENT LETTER (NON-RULE 144A)
---------------------
Date
Mortgage Asset Securitization Transactions, Inc.
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention:
JPMorgan Chase Bank, as trustee
0 Xxx Xxxx Xxxxx,
0xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention:
Re: Mortgage Asset Securitization Transactions, Inc., MASTR
Adjustable Rate Mortgages Trust 2003-1, Mortgage Pass-Through
Certificates, Series 2003-1, Class [ ]
Ladies and Gentlemen:
In connection with our acquisition of the above Certificates we
certify that (a) we understand that the Certificates are not being registered
under the Securities Act of 1933, as amended (the "Act"), or any state
securities laws and are being transferred to us in a transaction that is exempt
from the registration requirements of the Act and any such laws, (b) we are an
"accredited investor," as defined in Regulation D under the Act, and have such
knowledge and experience in financial and business matters that we are capable
of evaluating the merits and risks of investments in the Certificates, (c) we
have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Certificates and all matters relating
thereto or any additional information deemed necessary to our decision to
purchase the Certificates, (d) either (i) we are not an employee benefit plan
that is subject to Title I of the Employee Retirement Income Security Act of
1974, as amended ("ERISA"), or a plan or arrangement that is subject to Section
4975 of the Internal Revenue Code of 1986, as amended (the "Code"), or a plan or
arrangement subject to any federal, state or local law ("Similar Law")
materially similar to the foregoing provisions of ERISA or the Code, nor are we
acting on behalf of any such plan or arrangement, nor are we using the assets of
any such plan or arrangement to effect such acquisition or (ii) if we are an
insurance company, we are an insurance company that is purchasing such
Certificates with funds contained in an "insurance company general account" (as
such term is defined in Section V(e) of Prohibited Transaction Class Exemption
95-60 ("PTCE 95-60")) and the purchase and holding of such Certificates are
covered under Sections I and III of PTCE 95-60, (e) we are acquiring the
Certificates for investment for our own account and not with a view to any
distribution of such Certificates (but without prejudice to our right at all
times to sell or otherwise dispose of the Certificates in accordance with clause
(g) below), (f) we have not offered or sold any Certificates to, or solicited
offers to buy any Certificates from, any person, or otherwise approached or
negotiated with any person with respect thereto, or taken any other action which
would result in a violation of Section 5 of the Act, and (g) we will not sell,
transfer or otherwise dispose of any Certificates unless (1) such sale, transfer
or other disposition is made pursuant to an effective registration statement
under the Act or is exempt from such registration requirements, and if
requested, we will at our expense provide an opinion of counsel satisfactory to
the addressees of this Certificate that such sale, transfer or other disposition
may be made pursuant to an exemption from the Act, (2) the purchaser or
transferee of such Certificate has executed and delivered to you a certificate
to substantially the same effect as this certificate, and (3) the purchaser or
transferee has otherwise complied with any conditions for transfer set forth in
the Pooling and Servicing Agreement.
Very truly yours,
-----------------------------------------
Print Name of Transferor
By:____________________________________
Authorized Officer
EXHIBIT K
FORM OF RULE 144A LETTER
---------------------
Date
Mortgage Asset Securitization Transactions, Inc.
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention:
JPMorgan Chase Bank, as trustee
0 Xxx Xxxx Xxxxx,
0xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention:
Re: Mortgage Asset Securitization Transactions, Inc., MASTR
Adjustable Rate Mortgages Trust 2003-1, Mortgage Pass-Through
Certificates, Series 2003-1, Class [ ]
Ladies and Gentlemen:
In connection with our acquisition of the above Certificates we
certify that (a) we understand that the Certificates are not being registered
under the Securities Act of 1933, as amended (the "Act"), or any state
securities laws and are being transferred to us in a transaction that is exempt
from the registration requirements of the Act and any such laws, (b) we have
such knowledge and experience in financial and business matters that we are
capable of evaluating the merits and risks of investments in the Certificates,
(c) we have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Certificates and all matters relating
thereto or any additional information deemed necessary to our decision to
purchase the Certificates, (d) either (i) we are not an employee benefit plan
that is subject to Title I of the Employee Retirement Income Security Act of
1974, as amended ("ERISA"), or a plan or arrangement that is subject to Section
4975 of the Internal Revenue Code of 1986, as amended (the "Code"), or a plan or
arrangement subject to any federal, state or local law ("Similar Law")
materially similar to the foregoing provisions of ERISA or the Code, nor are we
acting on behalf of any such plan or arrangement, nor are we using the assets of
any such plan or arrangement to effect such acquisition or (ii) if we are an
insurance company, we are an insurance company that is purchasing such
Certificates with funds contained in an "insurance company general account" (as
such term is defined in Section V(e) of Prohibited Transaction Class Exemption
95-60 ("PTCE 95-60")) and that the purchase and holding of such Certificates are
covered under PTCE 95-60, (e) we have not, nor has anyone acting on our behalf
offered, transferred, pledged, sold or otherwise disposed of the Certificates,
any interest in the Certificates or any other similar security to, or solicited
any offer to buy or accept a transfer, pledge or other disposition of the
Certificates, any interest in the Certificates or any other similar security
from, or otherwise approached or negotiated with respect to the Certificates,
any interest in the Certificates or any other similar security with, any person
in any manner, or made any general solicitation by means of general advertising
or in any other manner, or taken any other action, that would constitute a
distribution of the Certificates under the Securities Act or that would render
the disposition of the Certificates a violation of Section 5 of the Securities
Act or require registration pursuant thereto, nor will act, nor has authorized
or will authorize any person to act, in such manner with respect to the
Certificates, (f) we are a "qualified institutional buyer" as that term is
defined in Rule 144A under the Securities Act and have completed either of the
forms of certification to that effect attached hereto as Annex 1 or Annex 2. We
are aware that the sale to us is being made in reliance on Rule 144A. We are
acquiring the Certificates for our own account or for resale pursuant to Rule
144A and further, understand that such Certificates may be resold, pledged or
transferred only (i) to a person reasonably believed to be a qualified
institutional buyer that purchases for its own account or for the account of a
qualified institutional buyer to whom notice is given that the resale, pledge or
transfer is being made in reliance on Rule 144A, or (ii) pursuant to another
exemption from registration under the Securities Act.
ANNEX 1
to EXHIBIT K
QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
(For Transferees Other Than Registered Investment Companies)
The undersigned (the "Buyer") hereby certifies as follows to the
parties listed in the Rule 144A Transferee Certificate to which this
certification relates with respect to the Certificates described therein:
1. As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer of the
Buyer.
2. In connection with purchases by the Buyer, the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933, as amended ("Rule 144A") because (i) the Buyer owned
and/or invested on a discretionary basis either at least $100,000 in securities
or, if Buyer is a dealer, Buyer must own and/or invest on a discretionary basis
at least $10,000,000 in securities (except for the excluded securities referred
to below) as of the end of the Buyer's most recent fiscal year (such amount
being calculated in accordance with Rule 144A and (ii) the Buyer satisfies the
criteria in the category marked below.
Corporation, etc. The Buyer is a corporation (other than a bank,
savings and loan association or similar institution), Massachusetts or similar
business trust, partnership, or charitable organization described in Section
501(c)(3) of the Internal Revenue Code of 1986, as amended.
Bank. The Buyer (a) is a national bank or banking institution
organized under the laws of any State, territory or the District of Columbia,
the business of which is substantially confined to banking and is supervised by
the State or territorial banking commission or similar official or is a foreign
bank or equivalent institution, and (b) has an audited net worth of at least
$25,000,000 as demonstrated in its latest annual financial statements, a copy of
which is attached hereto.
Savings and Loan. The Buyer (a) is a savings and loan association,
building and loan association, cooperative bank, homestead association or
similar institution, which is supervised and examined by a State or Federal
authority having supervision over any such institutions or is a foreign savings
and loan association or equivalent institution and (b) has an audited net worth
of at least $25,000,000 as demonstrated in its latest annual financial
statements, a copy of which is attached hereto.
Broker-dealer. The Buyer is a dealer registered pursuant to Section
15 of the Securities Exchange Act of 1934.
Insurance Company. The Buyer is an insurance company whose primary
and predominant business activity is the writing of insurance or the reinsuring
of risks underwritten by insurance companies and which is subject to supervision
by the insurance commissioner or a similar official or agency of a State,
territory or the District of Columbia.
State or Local Plan. The Buyer is a plan established and maintained
by a State, its political subdivisions, or any agency or instrumentality of the
State or its political subdivisions, for the benefit of its employees.
ERISA Plan. The Buyer is an employee benefit plan within the meaning
of Title I of the Employee Retirement Income Security Act of 1974.
Investment Advisor. The Buyer is an investment advisor registered
under the Investment Advisors Act of 1940.
Small Business Investment Company. Buyer is a small business
investment company licensed by the U.S. Small Business Administration under
Section 301(c) or (d) of the Small Business Investment Act of 1958.
Business Development Company. Buyer is a business development
company as defined in Section 202(a)(22) of the Investment Advisors Act of 1940.
3. The term "securities" as used herein does not include (i)
securities of issuers that are affiliated with the Buyer, (ii) securities that
are part of an unsold allotment to or subscription by the Buyer, if the Buyer is
a dealer, (iii) securities issued or guaranteed by the U.S. or any
instrumentality thereof, (iv) bank deposit notes and certificates of deposit,
(v) loan participations, (vi) repurchase agreements, (vii) securities owned but
subject to a repurchase agreement and (viii) currency, interest rate and
commodity swaps.
4. For purposes of determining the aggregate amount of securities
owned and/or invested on a discretionary basis by the Buyer, the Buyer used the
cost of such securities to the Buyer and did not include any of the securities
referred to in the preceding paragraph, except (i) where the Buyer reports its
securities holdings in its financial statements on the basis of their market
value, and (ii) no current information with respect to the cost of those
securities has been published. If clause (ii) in the preceding sentence applies,
the securities may be valued at market. Further, in determining such aggregate
amount, the Buyer may have included securities owned by subsidiaries of the
Buyer, but only if such subsidiaries are consolidated with the Buyer in its
financial statements prepared in accordance with generally accepted accounting
principles and if the investments of such subsidiaries are managed under the
Buyer's direction. However, such securities were not included if the Buyer is a
majority-owned, consolidated subsidiary of another enterprise and the Buyer is
not itself a reporting company under the Securities Exchange Act of 1934, as
amended.
5. The Buyer acknowledges that it is familiar with Rule 144A and
understands that the seller to it and other parties related to the Certificates
are relying and will continue to rely on the statements made herein because one
or more sales to the Buyer may be in reliance on Rule 144A.
6. Until the date of purchase of the Rule 144A Securities, the Buyer
will notify each of the parties to which this certification is made of any
changes in the information and conclusions herein. Until such notice is given,
the Buyer's purchase of the Certificates will constitute a reaffirmation of this
certification as of the date of such purchase. In addition, if the Buyer is a
bank or savings and loan is provided above, the Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after they
become available.
----------------------------------
Print Name of Buyer
By:____________________________________
Name:
Title:
Date:
ANNEX 2
to EXHIBIT K
QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
(For Transferees That are Registered Investment Companies)
The undersigned (the "Buyer") hereby certifies as follows to the
parties listed in the Rule 144A Transferee Certificate to which this
certification relates with respect to the Certificates described therein:
1. As indicated below, the undersigned is the President, Chief
Financial Officer or Senior Vice President of the Buyer or, if the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933, as amended ("Rule 144A") because Buyer is part of a
Family of Investment Companies (as defined below), is such an officer of the
Adviser.
2. In connection with purchases by Buyer, the Buyer is a "qualified
institutional buyer" as defined in SEC Rule 144A because (i) the Buyer is an
investment company registered under the Investment Company Act of 1940, as
amended and (ii) as marked below, the Buyer alone, or the Buyer's Family of
Investment Companies, owned at least $100,000,000 in securities (other than the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year. For purposes of determining the amount of securities owned by the
Buyer or the Buyer's Family of Investment Companies, the cost of such securities
was used, except (i) where the Buyer or the Buyer's Family of Investment
Companies reports its securities holdings in its financial statements on the
basis of their market value, and (ii) no current information with respect to the
cost of those securities has been published. If clause (ii) in the preceding
sentence applies, the securities may be valued at market.
The Buyer owned $_______ in securities (other than the excluded
securities referred to below) as of the end of the Buyer's most recent fiscal
year (such amount being calculated in accordance with Rule 144A).
The Buyer is part of a Family of Investment Companies which owned in
the aggregate $_______ in securities (other than the excluded securities
referred to below) as of the end of the Buyer's most recent fiscal year (such
amount being calculated in accordance with Rule 144A).
3. The term "Family of Investment Companies" as used herein means
two or more registered investment companies (or series thereof) that have the
same investment adviser or investment advisers that are affiliated (by virtue of
being majority owned subsidiaries of the same parent or because one investment
adviser is a majority owned subsidiary of the other).
4. The term "securities" as used herein does not include (i)
securities of issuers that are affiliated with the Buyer or are part of the
Buyer's Family of Investment Companies, (ii) securities issued or guaranteed by
the U.S. or any instrumentality thereof, (iii) bank deposit notes and
certificates of deposit, (iv) loan participations, (v) repurchase agreements,
(vi) securities owned but subject to a repurchase agreement and (vii) currency,
interest rate and commodity swaps.
5. The Buyer is familiar with Rule 144A and understands that the
parties listed in the Rule 144A Transferee Certificate to which this
certification relates are relying and will continue to rely on the statements
made herein because one or more sales to the Buyer will be in reliance on Rule
144A. In addition, the Buyer will only purchase for the Buyer's own account.
6. Until the date of purchase of the Certificates, the undersigned
will notify the parties listed in the Rule 144A Transferee Certificate to which
this certification relates of any changes in the information and conclusions
herein. Until such notice is given, the Buyer's purchase of the Certificates
will constitute a reaffirmation of this certification by the undersigned as of
the date of such purchase.
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Print Name of Buyer or Adviser
By:____________________________________
Name:
Title:
IF AN ADVISER:
------------------------------------
Print Name of Buyer
Date:
EXHIBIT L
REQUEST FOR RELEASE OF DOCUMENTS
Xxxxx Fargo Bank Minnesota, N.A.
0000 00xx Xxxxxx X.X.
Xxxxxxxxxxx, XX 00000-0000
Attn: Inventory Control--MASTR Adjustable Rate Mortgages Trust 2003-1
Re: Pooling and Servicing Agreement, dated as of January 1, 2003,
by and among Mortgage Asset Securitization Transactions, Inc.,
as depositor, UBS Warburg Real Estate Securities Inc., as
transferor, Xxxxx Fargo Bank Minnesota, N.A., as master
servicer and JPMorgan Chase Bank, as trustee
In connection with the administration of the Mortgage Loans held by
you as Master Servicer pursuant to the above-captioned Pooling and Servicing
Agreement, we request the release, and hereby acknowledge receipt, of the
Mortgage File for the Mortgage Loan described below, for the reason indicated.
Mortgage Loan Number:
Mortgagor Name, Address & Zip Code:
------------------------------------------
Reason for Requesting Documents (check one):
_______ 1. Mortgage Paid in Full
_______ 2. Foreclosure
_______ 3. Substitution
_______ 4. Other Liquidation (Repurchases, etc.)
_______ 5. Nonliquidation
Reason:____________________________________
Address to which Custodian should
Deliver the Master Servicer's Mortgage File:
------------------------------------------
By: ___________________________________
(authorized signer)
Issuer:_____________________________________
Address:___________________________________
Date:______________________________________
Master Servicer
Xxxxx Fargo Bank Minnesota, N.A.
Please acknowledge the execution of the above request by your signature and date
below:
------------------------------------ -----------------
Signature Date
Documents returned to Custodian:
------------------------------------ -----------------
Custodian Date
EXHIBIT M
FORM OF CERTIFICATION TO BE
PROVIDED WITH FORM 10-K
MASTR Adjustable Rate Mortgages Trust 2003-1
Mortgage Pass-Through Certificates
Series 2003-1
This Certification is being made pursuant to Section 8.12(d) of the
Pooling and Servicing Agreement (the "Pooling and Servicing Agreement") relating
to the above-referenced Series, among UBS Warburg Real Estate Securities Inc.,
Mortgage Asset Securitization Transactions, Inc., as depositor (the
"Depositor"), Xxxxx Fargo Bank Minnesota, N.A., as master servicer (the "Master
Servicer"), and JPMorgan Chase Bank, as trustee (the "Trustee"). Capitalized
terms used but not defined herein shall have the meanings assigned in the
Pooling and Servicing Agreement.
I, [identify the certifying individual], certify that:
(a) I have reviewed this annual report on Form 10-K, and all reports on Form 8-K
containing distribution date reports filed in respect of periods included in the
year covered by this annual report, of the Trust;
(b) Based on my knowledge, the information in these reports, taken as a whole,
does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading as of the
last day of the period covered by this annual report;
(c) Based on my knowledge, the servicing information required to be provided to
the Trustee by the Master Servicer under the Pooling and Servicing Agreement is
included in these reports;
(d) I am responsible for reviewing the activities performed by the Servicers
under the Sale and Servicing Agreements and based upon the review required under
the Pooling and Servicing Agreement, and except as disclosed in the report, each
Servicer has fulfilled its obligations under the related Sale and Servicing
Agreement; and
(e) I have disclosed to the Registrant's certified public accountants all
significant deficiencies relating to each Servicer's compliance with the minimum
servicing standards in accordance with a review conducted in compliance with the
Uniform Single Attestation Program for Mortgage Bankers or similar standard as
set forth in the related Sale and Servicing Agreements.
Date:
------------------------
[Signature]
[Title]
