EXHIBIT 4
EXECUTION COPY
GS MORTGAGE SECURITIES CORP.,
Depositor,
COUNTRYWIDE HOME LOANS SERVICING LP,
Servicer,
JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,
Servicer,
X.X. XXXXXX TRUST COMPANY, NATIONAL ASSOCIATION,
Custodian,
and
DEUTSCHE BANK NATIONAL TRUST COMPANY,
Trustee
--------------------------------------
POOLING AND SERVICING AGREEMENT
Dated as of March 1, 2005
--------------------------------------
GSAMP TRUST 2005-HE2
MORTGAGE PASS-THROUGH CERTIFICATES,
SERIES 2005-HE2
TABLE OF CONTENTS
ARTICLE I
DEFINITIONS
Section 1.01 Definitions................................................
ARTICLE II
CONVEYANCE OF MORTGAGE LOANS;
REPRESENTATIONS AND WARRANTIES
Section 2.01 Conveyance of Mortgage Loans...............................
Section 2.02 Acceptance by the Trustee of the Mortgage Loans............
Section 2.03 Representations, Warranties and Covenants of Each
Servicer and the Custodian..............................
Section 2.04 [Reserved.]................................................
Section 2.05 Execution and Delivery of Certificates.....................
Section 2.06 REMIC Matters..............................................
Section 2.07 Representations and Warranties of the Depositor............
Section 2.08 Enforcement of Purchaser Obligations.......................
ARTICLE III
ADMINISTRATION AND SERVICING
OF MORTGAGE LOANS
Section 3.01 Servicers to Service Mortgage Loans........................
Section 3.02 Subservicing Agreements between a Servicer and
Subservicers............................................
Section 3.03 Successor Subservicers.....................................
Section 3.04 Liability of the Servicers.................................
Section 3.05 No Contractual Relationship between Subservicers and the
Trustee.................................................
Section 3.06 Assumption or Termination of Subservicing Agreements by
Trustee.................................................
Section 3.07 Collection of Certain Mortgage Loan Payments...............
Section 3.08 Subservicing Accounts......................................
Section 3.09 Collection of Taxes, Assessments and Similar Items;
Escrow Accounts.........................................
Section 3.10 Collection Accounts........................................
Section 3.11 Withdrawals from the Collection Accounts...................
Section 3.12 Investment of Funds in the Collection Accounts and the
Distribution Account....................................
Section 3.13 Maintenance of Hazard Insurance, Errors and Omissions
and Fidelity Coverage...................................
Section 3.14 Enforcement of Due-on-Sale Clauses; Assumption Agreements..
Section 3.15 Realization upon Defaulted Mortgage Loans..................
Section 3.16 Release of Mortgage Files..................................
Section 3.17 Title, Conservation and Disposition of REO Property........
Section 3.18 Notification of Adjustments................................
Section 3.19 Access to Certain Documentation and Information
Regarding the Mortgage Loans............................
Section 3.20 Documents, Records and Funds in Possession of the
Servicers to Be Held for the Trustee....................
Section 3.21 Servicing Compensation.....................................
Section 3.22 Annual Statement as to Compliance..........................
Section 3.23 Annual Independent Public Accountants' Servicing
Statement; Financial Statements.........................
Section 3.24 Trustee to Act as Servicer.................................
Section 3.25 Compensating Interest......................................
Section 3.26 Credit Reporting; Xxxxx-Xxxxx-Xxxxxx Act...................
Section 3.27 Excess Reserve Fund Account; Distribution Account..........
Section 3.28 Optional Purchase of Delinquent Mortgage Loans.............
Section 3.29 Transfer of Servicing for Certain Acoustic Mortgage
Loans and Certain First NLC Mortgage Loans..............
ARTICLE IV
DISTRIBUTIONS AND
ADVANCES BY THE SERVICERS
Section 4.01 Advances...................................................
Section 4.02 Priorities of Distribution.................................
Section 4.03 Monthly Statements to Certificateholders...................
Section 4.04 Certain Matters Relating to the Determination of LIBOR.....
Section 4.05 Allocation of Applied Realized Loss Amounts................
Section 4.06 Supplemental Interest Trust................................
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 SERVICERS
Section 6.01 Respective Liabilities of the Depositor and the Servicers..
Section 6.02 Merger or Consolidation of the Depositor or a Servicer.....
Section 6.03 Limitation on Liability of the Depositor, the Servicers
and Others..............................................
Section 6.04 Limitation on Resignation of a Servicer....................
Section 6.05 Additional Indemnification by the Servicers; Third Party
Claims..................................................
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
Section 8.01 Duties of the Trustee......................................
Section 8.02 Certain Matters Affecting the Custodian and 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 the Trustee...................
Section 8.07 Resignation and Removal of the Trustee.....................
Section 8.08 Successor Trustee..........................................
Section 8.09 Merger or Consolidation of the Trustee.....................
Section 8.10 Appointment of Co-Trustee or Separate Trustee..............
Section 8.11 Tax Matters................................................
Section 8.12 Periodic Filings...........................................
Section 8.13 Tax Treatment of Upper-Tier Carry Forward Amounts and
Basis Risk Carry Forward Amounts........................
Section 8.14 Custodial Responsibilities.................................
Section 8.15 Limitations on Custodial Responsibilities..................
ARTICLE IX
TERMINATION
Section 9.01 Termination upon Liquidation or Purchase of the 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; Sales; Advance Facilities......................
Section 10.08 Limitation on Rights of Certificateholders.................
Section 10.09 Inspection and Audit Rights................................
Section 10.10 Certificates Nonassessable and Fully Paid..................
Section 10.11 Waiver of Jury Trial.......................................
Section 10.12 Limitation of Damages......................................
Section 10.13 Rights of the Swap Provider................................
SCHEDULES
Schedule I Mortgage Loan Schedule
Schedule II Representations and Warranties of Countrywide, as Servicer
Schedule III Representations and Warranties of JPMorgan, as Servicer
Schedule IV Representations and Warranties of X.X. Xxxxxx Trust Company,
National Association, as Custodian
EXHIBITS
Exhibit A-1 Form of Class A, Class M and Class B Certificates
Exhibit B Form of Class P Certificate
Exhibit C-1 Form of Class R-1 Certificate
Exhibit C-2 Form of Class R-2 Certificate
Exhibit D Form of Class X Certificate
Exhibit E Form of Initial Certification of Custodian or Trustee
Exhibit F Form of Document Certification and Exception Report of Custodian or
Trustee
Exhibit G Form of Residual Transfer Affidavit
Exhibit H Form of Transferor Certificate
Exhibit I Form of Rule 144A Letter
Exhibit J Form of Request for Release
Exhibit K Contents of Each Mortgage File
Exhibit L Servicer Reporting Requirements
Exhibit M Form of Certification to be provided with Form 10-K
Exhibit N Form of Trustee Certification to be provided to Depositor
Exhibit O Form of Servicer Certification to be provided to Depositor
Exhibit P Representations and Warranties Agreement
THIS POOLING AND SERVICING AGREEMENT, dated as of March 1, 2005, is
among GS MORTGAGE SECURITIES CORP., a Delaware corporation (the "Depositor"),
COUNTRYWIDE HOME LOANS SERVICING LP, a Texas limited partnership
("Countrywide"), JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, a national banking
association ("JPMorgan"), as a Servicer, X.X. XXXXXX TRUST COMPANY, NATIONAL
ASSOCIATION, a national banking association, as custodian (the "Custodian"), and
DEUTSCHE BANK NATIONAL TRUST COMPANY, a national banking association, as trustee
(the "Trustee").
W I T N E S S E T H:
In consideration of the mutual agreements herein contained, the
parties hereto agree as follows:
PRELIMINARY STATEMENT
The Trustee shall elect that four segregated asset pools within the
Trust Fund (exclusive of (i) the Prepayment Premiums, (ii) the Interest Rate
Swap Agreement, (iii) the Supplemental Interest Trust, (iv) the Excess Reserve
Fund Account, and (v) the right of the Principal Certificates to receive
Upper-Tier Carry Forward Amounts and, without duplication, Basis Risk Carry
Forward Amounts and the obligation to pay Class IO Shortfalls) be treated for
federal income tax purposes as comprising four REMICs (each, a "Trust REMIC" or,
in the alternative, Pooling-Tier REMIC-1, Pooling-Tier REMIC 2, the Lower-Tier
REMIC and the Upper-Tier REMIC, respectively). The Class X Interest and each
Class of Principal Certificates (other than the right of each Class of Principal
Certificates to receive Upper-Tier Carry Forward Amounts and, without
duplication, Basis Risk Carry Forward Amounts) and the obligation to pay Class
IO Shortfalls represents ownership of a regular interest in a REMIC for purposes
of the REMIC Provisions. The Class R-2 Certificates represent ownership of the
sole class of residual interest in Pooling-Tier REMIC-1 for purposes of the
REMIC Provisions. The Class R-1 Certificates represent ownership of the sole
class of residual interest in each of Pooling-Tier REMIC 2, the Lower-Tier REMIC
and the Upper-Tier REMIC for purposes of the REMIC Provisions. The Start-up Day
for each REMIC described herein is the Closing Date. The latest possible
maturity date for each Certificate is the latest date referenced in Section
2.06. The Upper-Tier REMIC shall hold as assets the several classes of
uncertificated Lower-Tier Regular Interests, set out below. The Lower-Tier REMIC
shall hold as assets the several classes of uncertificated Pooling-Tier REMIC 2
Regular Interests. Pooling-Tier REMIC 2 shall hold as assets the several classes
of uncertificated Pooling-Tier REMIC-1 Regular Interests. Pooling-Tier REMIC-1
shall hold as assets the assets of the Trust Fund (exclusive of (i) the
Prepayment Premiums, (ii) the Interest Rate Swap Agreement, (iii) the
Supplemental Interest Trust, (iv) the Excess Reserve Fund Account, and (v) the
right of the Principal Certificates to receive Upper-Tier Carry Forward Amounts
and, without duplication, Basis Risk Carry Forward Amounts and the obligation to
pay Class IO Shortfalls).
For federal income tax purposes, each Class of Principal
Certificates represents a beneficial ownership of a regular interest in the
Upper-Tier REMIC, the right to receive Upper-Tier Carry Forward Amounts (and,
without duplication, Basis Risk Carry Forward Amounts), and the obligation to
pay Class IO Shortfalls, the Class X Certificates represent beneficial ownership
of the Class X Regular Interest, the Interest Rate Swap Agreement, the
Supplemental Interest Trust, the Excess Reserve Fund Account and the right to
receive Class IO Shortfalls, and the Class P Certificates represent beneficial
ownership of the Prepayment Premiums, which portions of the Trust Fund shall be
treated as a grantor trust.
Pooling-Tier REMIC-1
Pooling-Tier REMIC-1 shall issue the following interests in
Pooling-Tier REMIC-1, and each such interest is hereby designated as a regular
interest in the Pooling-Tier REMIC-1. Pooling-Tier REMIC-1 shall also issue the
Class R-2 Certificates. The Class R-2 Certificates are hereby designated as the
sole class of residual interest in Pooling-Tier REMIC-1. The Class R-2
Certificates shall have a $100 Class Certificate Balance and shall have no
interest rate.
Initial Pooling-Tier
Pooling-Tier REMIC-1 Pooling-Tier REMIC-1 REMIC-1 Principal
Interest Interest Rate Amount
-------------------- -------------------- --------------------
Class PT1-1 (1) $ 607,611,047.65
Class PT1-2A (2) $ 703,992.15
Class PT1-2B (3) $ 703,992.15
Class PT1-3A (2) $ 810,810.81
Class PT1-3B (3) $ 810,810.81
Class PT1-4A (2) $ 915,244.15
Class PT1-4B (2) $ 915,244.15
Class PT1-5A (2) $ 1,013,526.37
Class PT1-5B (3) $ 1,013,526.37
Class PT1-6A (2) $ 1,116,890.75
Class PT1-6B (3) $ 1,116,890.75
Class PT1-7A (2) $ 1,206,577.87
Class PT1-7B (3) $ 1,206,577.87
Class PT1-8A (2) $ 1,293,844.33
Class PT1-8B (3) $ 1,293,844.33
Class PT1-9A (2) $ 1,374,545.47
Class PT1-9B (3) $ 1,374,545.47
Class PT1-10A (2) $ 1,406,927.54
Class PT1-10B (3) $ 1,406,927.54
Class PT1-11A (2) $ 1,356,926.64
Class PT1-11B (3) $ 1,356,926.64
Class PT1-12A (2) $ 1,306,650.43
Class PT1-12B (3) $ 1,306,650.43
Class PT1-13A (2) $ 1,258,231.75
Class PT1-13B (3) $ 1,258,231.75
Class PT1-14A (2) $ 1,211,602.10
Class PT1-14B (3) $ 1,211,602.10
Class PT1-15A (2) $ 1,166,695.56
Class PT1-15B (3) $ 1,166,695.56
Class PT1-16A (2) $ 1,123,448.57
Class PT1-16B (3) $ 1,123,448.57
Class PT1-17A (2) $ 1,081,799.95
Class PT1-17B (3) $ 1,081,799.95
Class PT1-18A (2) $ 1,041,690.78
Class PT1-18B (3) $ 1,041,690.78
Class PT1-19A (2) $ 1,003,064.27
Class PT1-19B (3) $ 1,003,064.27
Class PT1-20A (2) $ 965,865.75
Class PT1-20B (3) $ 965,865.75
Class PT1-21A (2) $ 930,042.57
Class PT1-21B (3) $ 930,042.57
Class PT1-22A (2) $ 895,543.97
Class PT1-22B (3) $ 895,543.97
Class PT1-23A (2) $ 862,321.11
Class PT1-23B (3) $ 862,321.11
Class PT1-24A (2) $ 830,326.93
Class PT1-24B (3) $ 830,326.93
Class PT1-25A (2) $ 799,516.10
Class PT1-25B (3) $ 799,516.10
Class PT1-26A (2) $ 769,844.97
Class PT1-26B (3) $ 769,844.97
Class PT1-27A (2) $ 741,271.46
Class PT1-27B (3) $ 741,271.46
Class PT1-28A (2) $ 713,755.09
Class PT1-28B (3) $ 713,755.09
Class PT1-29A (2) $ 687,256.84
Class PT1-29B (3) $ 687,256.84
Class PT1-30A (2) $ 661,739.14
Class PT1-30B (3) $ 661,739.14
Class PT1-31A (2) $ 637,165.80
Class PT1-31B (3) $ 637,165.80
Class PT1-32A (2) $ 613,501.96
Class PT1-32B (3) $ 613,501.96
Class PT1-33A (2) $ 590,714.03
Class PT1-33B (3) $ 590,714.03
Class PT1-34A (2) $ 568,769.70
Class PT1-34B (3) $ 568,769.70
Class PT1-35A (2) $ 547,637.81
Class PT1-35B (3) $ 547,637.81
Class PT1-36A (2) $ 527,288.37
Class PT1-36B (3) $ 527,288.37
Class PT1-37A (2) $ 507,692.48
Class PT1-37B (3) $ 507,692.48
Class PT1-38A (2) $ 488,822.30
Class PT1-38B (3) $ 488,822.30
Class PT1-39A (2) $ 470,651.05
Class PT1-39B (3) $ 470,651.05
Class PT1-40A (2) $ 453,152.89
Class PT1-40B (3) $ 453,152.89
Class PT1-41A (2) $ 436,302.98
Class PT1-41B (3) $ 436,302.98
Class PT1-42A (2) $ 420,077.37
Class PT1-42B (3) $ 420,077.37
Class PT1-43A (2) $ 404,452.98
Class PT1-43B (3) $ 404,452.98
Class PT1-44A (2) $ 389,407.60
Class PT1-44B (3) $ 389,407.60
Class PT1-45A (2) $ 374,919.84
Class PT1-45B (3) $ 374,919.84
Class PT1-46A (2) $ 360,969.09
Class PT1-46B (3) $ 360,969.09
Class PT1-47A (2) $ 347,535.52
Class PT1-47B (3) $ 347,535.52
Class PT1-48A (2) $ 334,599.98
Class PT1-48B (3) $ 334,599.98
Class PT1-49A (2) $ 322,144.08
Class PT1-49B (3) $ 322,144.08
Class PT1-50A (2) $ 310,150.10
Class PT1-50B (3) $ 310,150.10
Class PT1-51A (2) $ 298,600.94
Class PT1-51B (3) $ 298,600.94
Class PT1-52A (2) $ 287,480.17
Class PT1-52B (3) $ 287,480.17
Class PT1-53A (2) $ 276,771.94
Class PT1-53B (3) $ 276,771.94
Class PT1-54A (2) $ 266,460.99
Class PT1-54B (3) $ 266,460.99
Class PT1-55A (2) $ 256,532.64
Class PT1-55B (3) $ 256,532.64
Class PT1-56A (2) $ 246,972.72
Class PT1-56B (3) $ 246,972.72
Class PT1-57A (2) $ 237,767.62
Class PT1-57B (3) $ 237,767.62
Class PT1-58A (2) $ 229,034.50
Class PT1-58B (3) $ 229,034.50
Class PT1-59A (2) $ 220,497.37
Class PT1-59B (3) $ 220,497.37
Class PT1-60A (2) $ 212,314.83
Class PT1-60B (3) $ 212,314.83
Class PT1-61A (2) $ 5,444,743.68
Class PT1-61B (3) $ 5,444,743.68
--------------------
(1) For any Distribution Date (and the related Interest Accrual Period), this
Pooling-Tier REMIC-1 Regular Interest shall bear interest at a per annum
rate (its "Pooling-Tier REMIC-1 Interest Rate") equal to the Pooling-Tier
REMIC-1 WAC Rate.
(2) For any Distribution Date (and the related Interest Accrual Period) this
Pooling-Tier REMIC-1 Regular Interest shall bear interest at a per annum
rate (its "Pooling-Tier REMIC-1 Interest Rate") equal to the product of
(i) 2 and (ii) the Pooling-Tier REMIC-1 WAC Rate, subject to a maximum
rate of 8.49%.
(3) For any Distribution Date (and the related Interest Accrual Period) this
Pooling-Tier REMIC-1 Regular Interest shall bear interest at a per annum
rate (its "Pooling-Tier REMIC-1 Interest Rate") equal to the excess, if
any, of (A) the product of (i) 2 and (ii) the Pooling-Tier REMIC-1 WAC
Rate over (B) 8.49%.
On each Distribution Date, the Trustee shall first pay from the
Trust Fund and charge as an expense of Pooling-Tier REMIC-1 all expenses of the
Trust for such Distribution Date. Such expense, other than Servicing Fees, the
Custodian Fees and Trustee Fees, shall be allocated in the same manner as
Realized Losses.
On each Distribution Date, the interest distributable in respect of
the Mortgage Loans for such Distribution Date shall be deemed to be distributed
to the Pooling-Tier REMIC-1 Regular Interests at the rates shown above.
On each Distribution Date, Realized Losses and payments of principal
in respect of the Mortgage Loans shall be allocated to the Class R-2
Certificates pursuant to Section 4.02(a)(ii) until its Class Certificate Balance
is reduced to zero and then to the outstanding Pooling-Tier REMIC-1 Regular
Interest with the lowest numerical denomination until the Pooling-Tier REMIC-1
Principal Amount of such interest is reduced to zero, provided that, with
respect to Pooling-Tier REMIC-1 Regular Interests with the same numerical
denomination, such Realized Losses and payments of principal shall be allocated
pro rata between such Pooling-Tier REMIC-1 Regular Interests.
Pooling-Tier REMIC-2
Pooling-Tier REMIC-2 shall issue the following interests in
Pooling-Tier REMIC-2, and each such interest, other than the Class PT2-R
Interest, is hereby designated as a regular interest in Pooling-Tier REMIC-2.
The Class PT2-R Interest is hereby designated as the sole class of residual
interest in Pooling-Tier REMIC-2 and shall be represented by the Class R-1
Certificates.
Pooling-Tier
REMIC-2 Initial
Principal Corresponding Corresponding
Pooling-Tier Amount or Class Corresponding Pooling-Tier Crossover
Pooling-Tier REMIC-2 Certificate Pooling-Tier REMIC-1 Distribution
REMIC 2 Interest Interest Rate Balance REMIC 2 IO Regular Interest Date
------------------ --------------- --------------- ------------- ---------------- -------------
Class PT2-1 (1) $607,611,047.65 N/A N/A N/A
Class PT2-2A (2) $ 703,992.15 Class PT2-IO-2 N/A N/A
Class PT2-2B (3) $ 703,992.15 N/A N/A N/A
Class PT2-3A (2) $ 810,810.81 Class PT2-IO-3 N/A N/A
Class PT2-3B (3) $ 810,810.81 N/A N/A N/A
Class PT2-4A (2) $ 915,244.15 Class PT2-IO-4 N/A N/A
Class PT2-4B (3) $ 915,244.15 N/A N/A N/A
Class PT2-5A (2) $ 1,013,526.37 Class PT2-IO-5 N/A N/A
Class PT2-5B (3) $ 1,013,526.37 N/A N/A N/A
Class PT2-6A (2) $ 1,116,890.75 Class PT2-IO-6 N/A N/A
Class PT2-6B (3) $ 1,116,890.75 N/A N/A N/A
Class PT2-7A (2) $ 1,206,577.87 Class PT2-IO-7 N/A N/A
Class PT2-7B (3) $ 1,206,577.87 N/A N/A N/A
Class PT2-8A (2) $ 1,293,844.33 Class PT2-IO-8 N/A N/A
Class PT2-8B (3) $ 1,293,844.33 N/A N/A N/A
Class PT2-9A (2) $ 1,374,545.47 Class PT2-IO-9 N/A N/A
Class PT2-9B (3) $ 1,374,545.47 N/A N/A N/A
Class PT2-10A (2) $ 1,406,927.54 Class PT2-IO-10 N/A N/A
Class PT2-10B (3) $ 1,406,927.54 N/A N/A N/A
Class PT2-11A (2) $ 1,356,926.64 Class PT2-IO-11 N/A N/A
Class PT2-11B (3) $ 1,356,926.64 N/A N/A N/A
Class PT2-12A (2) $ 1,306,650.43 Class PT2-IO-12 N/A N/A
Class PT2-12B (3) $ 1,306,650.43 N/A N/A N/A
Class PT2-13A (2) $ 1,258,231.75 Class PT2-IO-13 N/A N/A
Class PT2-13B (3) $ 1,258,231.75 N/A N/A N/A
Class PT2-14A (2) $ 1,211,602.10 Class PT2-IO-14 N/A N/A
Class PT2-14B (3) $ 1,211,602.10 N/A N/A N/A
Class PT2-15A (2) $ 1,166,695.56 Class PT2-IO-15 N/A N/A
Class PT2-15B (3) $ 1,166,695.56 N/A N/A N/A
Class PT2-16A (2) $ 1,123,448.57 Class PT2-IO-16 N/A N/A
Class PT2-16B (3) $ 1,123,448.57 N/A N/A N/A
Class PT2-17A (2) $ 1,081,799.95 Class PT2-IO-17 N/A N/A
Class PT2-17B (3) $ 1,081,799.95 N/A N/A N/A
Class PT2-18A (2) $ 1,041,690.78 Class PT2-IO-18 N/A N/A
Class PT2-18B (3) $ 1,041,690.78 N/A N/A N/A
Class PT2-19A (2) $ 1,003,064.27 Class PT2-IO-19 N/A N/A
Class PT2-19B (3) $ 1,003,064.27 N/A N/A N/A
Class PT2-20A (2) $ 965,865.75 Class PT2-IO-20 N/A N/A
Class PT2-20B (3) $ 965,865.75 N/A N/A N/A
Class PT2-21A (2) $ 930,042.57 Class PT2-IO-21 N/A N/A
Class PT2-21B (3) $ 930,042.57 N/A N/A N/A
Class PT2-22A (2) $ 895,543.97 Class PT2-IO-22 N/A N/A
Class PT2-22B (3) $ 895,543.97 N/A N/A N/A
Class PT2-23A (2) $ 862,321.11 Class PT2-IO-23 N/A N/A
Class PT2-23B (3) $ 862,321.11 N/A N/A N/A
Class PT2-24A (2) $ 830,326.93 Class PT2-IO-24 N/A N/A
Class PT2-24B (3) $ 830,326.93 N/A N/A N/A
Class PT2-25A (2) $ 799,516.10 Class PT2-IO-25 N/A N/A
Class PT2-25B (3) $ 799,516.10 N/A N/A N/A
Class PT2-26A (2) $ 769,844.97 Class PT2-IO-26 N/A N/A
Class PT2-26B (3) $ 769,844.97 N/A N/A N/A
Class PT2-27A (2) $ 741,271.46 Class PT2-IO-27 N/A N/A
Class PT2-27B (3) $ 741,271.46 N/A N/A N/A
Class PT2-28A (2) $ 713,755.09 Class PT2-IO-28 N/A N/A
Class PT2-28B (3) $ 713,755.09 N/A N/A N/A
Class PT2-29A (2) $ 687,256.84 Class PT2-IO-29 N/A N/A
Class PT2-29B (3) $ 687,256.84 N/A N/A N/A
Class PT2-30A (2) $ 661,739.14 Class PT2-IO-30 N/A N/A
Class PT2-30B (3) $ 661,739.14 N/A N/A N/A
Class PT2-31A (2) $ 637,165.80 Class PT2-IO-31 N/A N/A
Class PT2-31B (3) $ 637,165.80 N/A N/A N/A
Class PT2-32A (2) $ 613,501.96 Class PT2-IO-32 N/A N/A
Class PT2-32B (3) $ 613,501.96 N/A N/A N/A
Class PT2-33A (2) $ 590,714.03 Class PT2-IO-33 N/A N/A
Class PT2-33B (3) $ 590,714.03 N/A N/A N/A
Class PT2-34A (2) $ 568,769.70 Class PT2-IO-34 N/A N/A
Class PT2-34B (3) $ 568,769.70 N/A N/A N/A
Class PT2-35A (2) $ 547,637.81 Class PT2-IO-35 N/A N/A
Class PT2-35B (3) $ 547,637.81 N/A N/A N/A
Class PT2-36A (2) $ 527,288.37 Class PT2-IO-36 N/A N/A
Class PT2-36B (3) $ 527,288.37 N/A N/A N/A
Class PT2-37A (2) $ 507,692.48 Class PT2-IO-37 N/A N/A
Class PT2-37B (3) $ 507,692.48 N/A N/A N/A
Class PT2-38A (2) $ 488,822.30 Class PT2-IO-38 N/A N/A
Class PT2-38B (3) $ 488,822.30 N/A N/A N/A
Class PT2-39A (2) $ 470,651.05 Class PT2-IO-39 N/A N/A
Class PT2-39B (3) $ 470,651.05 N/A N/A N/A
Class PT2-40A (2) $ 453,152.89 Class PT2-IO-40 N/A N/A
Class PT2-40B (3) $ 453,152.89 N/A N/A N/A
Class PT2-41A (2) $ 436,302.98 Class PT2-IO-41 N/A N/A
Class PT2-41B (3) $ 436,302.98 N/A N/A N/A
Class PT2-42A (2) $ 420,077.37 Class PT2-IO-42 N/A N/A
Class PT2-42B (3) $ 420,077.37 N/A N/A N/A
Class PT2-43A (2) $ 404,452.98 Class PT2-IO-43 N/A N/A
Class PT2-43B (3) $ 404,452.98 N/A N/A N/A
Class PT2-44A (2) $ 389,407.60 Class PT2-IO-44 N/A N/A
Class PT2-44B (3) $ 389,407.60 N/A N/A N/A
Class PT2-45A (2) $ 374,919.84 Class PT2-IO-45 N/A N/A
Class PT2-45B (3) $ 374,919.84 N/A N/A N/A
Class PT2-46A (2) $ 360,969.09 Class PT2-IO-46 N/A N/A
Class PT2-46B (3) $ 360,969.09 N/A N/A N/A
Class PT2-47A (2) $ 347,535.52 Class PT2-IO-47 N/A N/A
Class PT2-47B (3) $ 347,535.52 N/A N/A N/A
Class PT2-48A (2) $ 334,599.98 Class PT2-IO-48 N/A N/A
Class PT2-48B (3) $ 334,599.98 N/A N/A N/A
Class PT2-49A (2) $ 322,144.08 Class PT2-IO-49 N/A N/A
Class PT2-49B (3) $ 322,144.08 N/A N/A N/A
Class PT2-50A (2) $ 310,150.10 Class PT2-IO-50 N/A N/A
Class PT2-50B (3) $ 310,150.10 N/A N/A N/A
Class PT2-51A (2) $ 298,600.94 Class PT2-IO-51 N/A N/A
Class PT2-51B (3) $ 298,600.94 N/A N/A N/A
Class PT2-52A (2) $ 287,480.17 Class PT2-IO-52 N/A N/A
Class PT2-52B (3) $ 287,480.17 N/A N/A N/A
Class PT2-53A (2) $ 276,771.94 Class PT2-IO-53 N/A N/A
Class PT2-53B (3) $ 276,771.94 N/A N/A N/A
Class PT2-54A (2) $ 266,460.99 Class PT2-IO-54 N/A N/A
Class PT2-54B (3) $ 266,460.99 N/A N/A N/A
Class PT2-55A (2) $ 256,532.64 Class PT2-IO-55 N/A N/A
Class PT2-55B (3) $ 256,532.64 N/A N/A N/A
Class PT2-56A (2) $ 246,972.72 Class PT2-IO-56 N/A N/A
Class PT2-56B (3) $ 246,972.72 N/A N/A N/A
Class PT2-57A (2) $ 237,767.62 Class PT2-IO-57 N/A N/A
Class PT2-57B (3) $ 237,767.62 N/A N/A N/A
Class PT2-58A (2) $ 229,034.50 Class PT2-IO-58 N/A N/A
Class PT2-58B (3) $ 229,034.50 N/A N/A N/A
Class PT2-59A (2) $ 220,497.37 Class PT2-IO-59 N/A N/A
Class PT2-59B (3) $ 220,497.37 N/A N/A N/A
Class PT2-60A (2) $ 212,314.83 Class PT2-IO-60 N/A N/A
Class PT2-60B (3) $ 212,314.83 N/A N/A N/A
Class PT2-61A (2) $ 5,444,743.68 Class PT2-IO-61 N/A N/A
Class PT2-61B (3) $ 5,444,743.68 N/A N/A N/A
Class PT2-IO-2 (4) (4) N/A Class PT1-2A April 2005
Class PT2-IO-3 (4) (4) N/A Class PT1-3A May 2005
Class PT2-IO-4 (4) (4) N/A Class PT1-4A June 2005
Class PT2-IO-5 (4) (4) N/A Class PT1-5A July 2005
Class PT2-IO-6 (4) (4) N/A Class PT1-6A August 2005
Class PT2-IO-7 (4) (4) N/A Class PT1-7A September 2005
Class PT2-IO-8 (4) (4) N/A Class PT1-8A October 2005
Class PT2-IO-9 (4) (4) N/A Class PT1-9A November 2005
Class PT2-IO-10 (4) (4) N/A Class PT1-10A December 2005
Class PT2-IO-11 (4) (4) N/A Class PT1-11A January 2006
Class PT2-IO-12 (4) (4) N/A Class PT1-12A February 2006
Class PT2-IO-13 (4) (4) N/A Class PT1-13A March 2006
Class PT2-IO-14 (4) (4) N/A Class PT1-14A April 2006
Class PT2-IO-15 (4) (4) N/A Class PT1-15A May 2006
Class PT2-IO-16 (4) (4) N/A Class PT1-16A June 2006
Class PT2-IO-17 (4) (4) N/A Class PT1-17A July 2006
Class PT2-IO-18 (4) (4) N/A Class PT1-18A August 2006
Class PT2-IO-19 (4) (4) N/A Class PT1-19A September 2006
Class PT2-IO-20 (4) (4) N/A Class PT1-20A October 2006
Class PT2-IO-21 (4) (4) N/A Class PT1-21A November 2006
Class PT2-IO-22 (4) (4) N/A Class PT1-22A December 2006
Class PT2-IO-23 (4) (4) N/A Class PT1-23A January 2007
Class PT2-IO-24 (4) (4) N/A Class PT1-24A February 2007
Class PT2-IO-25 (4) (4) N/A Class PT1-25A March 2007
Class PT2-IO-26 (4) (4) N/A Class PT1-26A April 2007
Class PT2-IO-27 (4) (4) N/A Class PT1-27A May 2007
Class PT2-IO-28 (4) (4) N/A Class PT1-28A June 2007
Class PT2-IO-29 (4) (4) N/A Class PT1-29A July 2007
Class PT2-IO-30 (4) (4) N/A Class PT1-30A August 2007
Class PT2-IO-31 (4) (4) N/A Class PT1-31A September 2007
Class PT2-IO-32 (4) (4) N/A Class PT1-32A October 2007
Class PT2-IO-33 (4) (4) N/A Class PT1-33A November 2007
Class PT2-IO-34 (4) (4) N/A Class PT1-34A December 2007
Class PT2-IO-35 (4) (4) N/A Class PT1-35A January 2008
Class PT2-IO-36 (4) (4) N/A Class PT1-36A February 2008
Class PT2-IO-37 (4) (4) N/A Class PT1-37A March 2008
Class PT2-IO-38 (4) (4) N/A Class PT1-38A April 2008
Class PT2-IO-39 (4) (4) N/A Class PT1-39A May 2008
Class PT2-IO-40 (4) (4) N/A Class PT1-40A June 2008
Class PT2-IO-41 (4) (4) N/A Class PT1-41A July 2008
Class PT2-IO-42 (4) (4) N/A Class PT1-42A August 2008
Class PT2-IO-43 (4) (4) N/A Class PT1-43A September 2008
Class PT2-IO-44 (4) (4) N/A Class PT1-44A October 2008
Class PT2-IO-45 (4) (4) N/A Class PT1-45A November 2008
Class PT2-IO-46 (4) (4) N/A Class PT1-46A December 2008
Class PT2-IO-47 (4) (4) N/A Class PT1-47A January 2009
Class PT2-IO-48 (4) (4) N/A Class PT1-48A February 2009
Class PT2-IO-49 (4) (4) N/A Class PT1-49A March 2009
Class PT2-IO-50 (4) (4) N/A Class PT1-50A April 2009
Class PT2-IO-51 (4) (4) N/A Class PT1-51A May 2009
Class PT2-IO-52 (4) (4) N/A Class PT1-52A June 2009
Class PT2-IO-53 (4) (4) N/A Class PT1-53A July 2009
Class PT2-IO-54 (4) (4) N/A Class PT1-54A August 2009
Class PT2-IO-55 (4) (4) N/A Class PT1-55A September 2009
Class PT2-IO-56 (4) (4) N/A Class PT1-56A October 2009
Class PT2-IO-57 (4) (4) N/A Class PT1-57A November 2009
Class PT2-IO-58 (4) (4) N/A Class PT1-58A December 2009
Class PT2-IO-59 (4) (4) N/A Class PT1-59A January 2010
Class PT2-IO-60 (4) (4) N/A Class PT1-60A February 2010
Class PT2-IO-61 (4) (4) N/A Class PT1-61A March 2010
Class PT2-R (5) $100.00 N/A N/A N/A
------------
(1) For any Distribution Date (and the related Interest Accrual Period), this
Pooling-Tier REMIC-2 Regular Interest shall bear interest at a per annum
rate equal to the Pooling-Tier REMIC-1 WAC Rate.
(2) For any Distribution Date (and the related Interest Accrual Period) this
Pooling-Tier REMIC-2 Regular Interest shall bear interest at a per annum
rate (its "Pooling-Tier REMIC-2 Interest Rate") equal to the weighted
average of the Pooling-Tier REMIC-1 Interest Rates on the Pooling-Tier
REMIC-1 Regular Interests having an "A" in their class designation,
provided that, on each Distribution Date on which interest is
distributable on the Corresponding Pooling-Tier REMIC-2 IO Interest, this
Pooling-Tier REMIC-2 Regular Interest shall bear interest at a per annum
rate equal to Swap LIBOR subject to a maximum rate equal to the weighted
average of the Pooling-Tier REMIC-1 Interest Rates on the Pooling-Tier
REMIC-1 Regular Interests having an "A" in their class designation.
(3) For any Distribution Date (and the related Interest Accrual Period) this
Pooling-Tier REMIC-2 Regular Interest shall bear interest at a per annum
rate (its "Pooling-Tier REMIC-2 Interest Rate") equal to the weighted
average of the Pooling-Tier REMIC-1 Interest Rates on the Pooling-Tier
REMIC-1 Regular Interests having a "B" in their class designation.
(4) Each Pooling-Tier REMIC 2 IO is an interest-only interest and does not
have a principal balance. From the Closing Date through and including the
Corresponding Crossover Distribution Date, each Pooling-Tier REMIC 2 IO
Interest shall be entitled to receive interest that accrues on the
Corresponding Pooling-Tier REMIC-1 Regular Interest at a rate equal to the
excess, if any, of (i) the Pooling-Tier REMIC-1 Interest Rate for the
Corresponding Pooling-Tier REMIC-1 Regular Interest over (ii) Swap LIBOR.
After the Corresponding Crossover Distribution Date, the Pooling-Tier
REMIC 2 IO Interest shall not accrue interest.
(5) The Class PT2-R Interest shall not bear interest.
On each Distribution Date, the interest distributable in respect of
the Mortgage Loans for such Distribution Date shall be distributed to the
Pooling-Tier REMIC 2 Regular Interests at the Pooling-Tier REMIC-1 Interest
Rates shown above.
On each Distribution Date, Realized Losses and payments of principal
in respect of the Mortgage Loans shall be allocated to the Class R-1
Certificates in respect of the Class PT2-R Interest pursuant to Section
4.02(a)(ii) until its Class Certificate Balance is reduced to zero and then to
the outstanding Pooling-Tier REMIC-2 Regular Interests (other than the
Pooling-Tier REMIC 2 IO Interests) with the lowest numerical denomination until
the Pooling-Tier REMIC 2 Principal Amount of such interest is reduced to zero,
provided that, for Pooling-Tier REMIC 2 Regular Interests with the same
numerical denomination, such Realized Losses and payments of principal shall be
allocated pro rata between such Pooling-Tier REMIC-2 Regular Interests.
Lower-Tier REMIC
The Lower-Tier REMIC shall issue the following interests, and each
such interest, other than the Class LT-R Interest, is hereby designated as a
regular interest in the Lower-Tier REMIC. The Class LT-R Interest is hereby
designated as the sole class of residual interest in the Lower-Tier REMIC and
shall be represented by the Class R-1 Certificates.
Corresponding
Upper-Tier
Lower-Tier Regular Lower-Tier Initial Lower-Tier Principal REMIC Regular
Interest Interest Rate Amount Interest
------------------ --------------- ---------------------------------------- ---------------
Class LT-A-1 (1) 1/2 initial Class Certificate Balance of A-1
Corresponding Upper-Tier REMIC Regular
Interest
Class LT-A-2 (1) 1/2 initial Class Certificate Balance of A-2
Corresponding Upper-Tier REMIC Regular
Interest
Class LT-A-3 (1) 1/2 initial Class Certificate Balance of A-3
Corresponding Upper-Tier REMIC Regular
Interest
Class LT-M-1 (1) 1/2 initial Class Certificate Balance of M-1
Corresponding Upper-Tier REMIC Regular
Interest
Class LT-M-2 (1) 1/2 initial Class Certificate Balance of M-2
Corresponding Upper-Tier REMIC Regular
Interest
Class LT-M-3 (1) 1/2 initial Class Certificate Balance of M-3
Corresponding Upper-Tier REMIC Regular
Interest
Class LT-B-1 (1) 1/2 initial Class Certificate Balance of B-1
Corresponding Upper-Tier REMIC Regular
Interest
Class LT-B-2 (1) 1/2 initial Class Certificate Balance of B-2
Corresponding Upper-Tier REMIC Regular
Interest
Class LT-B-3 (1) 1/2 initial Class Certificate Balance of B-3
Corresponding Upper-Tier REMIC Regular
Interest
Class LT-B-4 (1) 1/2 initial Class Certificate Balance of B-4
Corresponding Upper-Tier REMIC Regular
Interest
Class LT-Accrual (1) 1/2 Pool Principal Balance plus 1/2
Overcollateralized Amount, less $100
Class LT-IO (2) (2) N/A
Class LT-R (3) (3) N/A
-----------------------------
(1) The interest rate with respect to any Distribution Date for these
interests is a per annum variable rate equal to the weighted average of
the Pooling-Tier REMIC-2 Interest Rates of the Pooling-Tier REMIC-2
Regular Interests (other than the Pooling-Tier REMIC 2 IO Interests).
(2) This Lower-Tier Regular Interest is an interest-only interest and does not
have a Lower-Tier Principal Amount. On each Distribution Date, this
Lower-Tier Regular Interest shall be entitled to receive all interest
distributable on the Pooling-Tier REMIC 2 IO Interests.
(3) The Class LT-R Interest does not have a principal amount or an interest
rate.
Each Lower-Tier Regular Interest is hereby designated as a regular
interest in the Lower-Tier REMIC. The Class LT-A-1, Class LT-A-2, Class LT-A-3,
Class LT-M-1, Class LT-M-2, Class LT-M-3, Class LT-B-1, Class LT-B-2, Class
LT-B-3 and Class LT-B-4 Interests are hereby designated the LT-Accretion
Directed Classes (the "LT-Accretion Directed Classes").
On each Distribution Date, 50% of the increase in the
Overcollateralized Amount shall be payable as a reduction of the Lower-Tier
Principal Amount of the LT-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 Class Certificate Balance of
its Corresponding Class) and shall be accrued and added to the Lower-Tier
Principal Amount of the Class LT-Accrual Interest. On each Distribution Date,
the increase in the Lower-Tier Principal Amount of the Class LT-Accrual Interest
shall not exceed interest accruals for such Distribution Date for the Class
LT-Accrual Interest. In the event that: (i) 50% of the increase in the
Overcollateralized Amount exceeds (ii) interest accruals on the Class LT-Accrual
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 LT-Accrual Interest
payable as principal on the LT-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 Mortgage
Loans and all Subsequent Recoveries allocable to principal shall be allocated
(i) 50% to the Class LT-Accrual Interest and (ii) 50% to the LT-Accretion
Directed Classes (such principal payments and Subsequent Recoveries shall be
allocated among such LT-Accretion Directed Classes in an amount equal to 50% of
the principal amounts and Subsequent Recoveries allocated to their respective
Corresponding Classes), until paid in full. Notwithstanding the above, principal
payments allocated to the Class X Interest that result in the reduction in the
Overcollateralized Amount shall be allocated to the Class LT-Accrual Interest
(until paid in full). Realized Losses shall be applied so that after all
distributions have been made on each Distribution Date (i) the Lower-Tier
Principal Amount of each of the LT-Accretion Directed Classes is equal to 50% of
the Class Certificate Balance of their Corresponding Class, and (ii) the Class
LT-Accrual Interest is equal to 50% of the aggregate Stated Principal Balance of
the Mortgage Loans plus 50% of the Overcollateralized Amount. Any increase in
the Class Certificate Balance of a Class of Principal Certificates as result of
a Subsequent Recovery shall increase the Lower-Tier Principal Amount of the
Corresponding Lower-Tier Regular Interest by 50% of such increase, and the
remaining 50% of such increase shall increase the Class LT-Accrual Interest.
Upper-Tier REMIC
The Upper-Tier REMIC shall issue the following interests, and each
such interest, other than the Class UT-R Interest, is hereby designated as a
regular interest in the Upper-Tier REMIC. The Class UT-R Interest is hereby
designated as the sole class of residual interests in the Upper-Tier REMIC and
shall be represented by the Class R-1 Certificates.
Upper-Tier REMIC Upper-Tier Initial Principal Corresponding Class
Interest Interest Rate Upper-Tier Amount of Certificates
------------------------ ----------------- ------------------------- ----------------------
Class A-1 (1) $297,636,000 Class A-1
Class A-2 (1) $169,463,000 Class A-2
Class A-3 (1) $ 79,117,000 Class A-3
Class M-1 (1) $ 49,720,000 Class M-1
Class M-2 (1) $ 40,265,000 Class M-2
Class M-3 (1) $ 11,555,000 Class M-3
Class B-1 (1) $ 10,154,000 Class B-1
Class B-2 (1) $ 8,403,000 Class B-2
Class B-3 (1) $ 8,754,000 Class B-3
Class B-4 (1) $ 9,804,000 Class B-4
Class IO (2) (2) N/A
Class X (3) (3) Class X
Class UT-R (4) (4) Class R
-------------
(1) For any Distribution Date (and the related Interest Accrual Period) this
interest shall bear interest at the lesser of (i) the Pass-Through Rate
(determined without regard to the applicable WAC Cap) for the
Corresponding Class of Certificates and (ii) the Upper-Tier REMIC WAC
Rate.
(2) This interest is an interest-only interest and does not have a principal
balance. On each Distribution Date, the Class IO Interest shall be
entitled to receive all interest distributable on the Class LT-IO
Interest. This interest shall be beneficially owned by the holders of the
Class X Certificates and shall be held as an asset of the Supplemental
Interest Trust.
(3) The Class X Interest has an initial principal balance of $15,406,120.96
but will not accrue interest on such balance but will accrue interest on a
notional principal balance. As of any Distribution Date, the Class X
Interest shall have a notional principal balance equal to the aggregate of
the Lower-Tier Principal Amounts of the Lower-Tier Regular Interests
(other than the Class LT-IO Interest) as of the first day of the related
Interest Accrual Period. With respect to any Interest Accrual Period, the
Class X Interest shall bear interest at a rate equal to the excess, if
any, of the Upper-Tier REMIC WAC Rate over the product of (i) 2 and (ii)
the weighted average of the Lower-Tier Interest Rates of the Lower-Tier
REMIC Interests (other than the Class LT-IO Interest), where the
Lower-Tier Interest Rate on the Class LT Accrual Interest is subject to a
cap equal to zero and each LT Accretion Directed Class is subject to a cap
equal to the Upper-Tier Interest Rate on its Corresponding Class of
Upper-Tier Regular Interest. With respect to any Distribution Date,
interest that so accrues on the notional principal balance of the Class 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.
(4) The Class UT-R Interest does not have an interest rate or a principal
balance.
On each Distribution Date, interest distributable in respect of the
Lower-Tier Interests for such Distribution Date shall be deemed to be
distributed to the interest in the Upper-Tier REMIC at the rates shown above,
provided that the Class IO Interest shall be entitled to receive interest before
any other interest in the Upper-Tier REMIC.
On each Distribution Date, all Realized Losses and all payments of
principal shall be allocated to the Upper-Tier Interests until the outstanding
principal balance of each such interest equals the outstanding Class Certificate
Balance of the Corresponding Class of Certificates as of such Distribution Date.
Certificates
Class Pass-Through Class Certificate
Class Designation Rate Balance
----------------------- ------------------ ---------------------
Class A-1(14) (1) $ 297,636,000
Class A-2(14) (2) $ 169,463,000
Class A-3(14) (3) $ 79,117,000
Class M-1(14) (4) $ 49,720,000
Class M-2(14) (5) $ 40,265,000
Class M-3(14) (6) $ 11,555,000
Class B-1(14) (7) $ 10,154,000
Class B-2(14) (8) $ 8,403,000
Class B-3(13) (9) $ 8,754,000
Class B-4(13) (10) $ 9,804,000
Class X (11) 0(11)
Class R-1 (12) $100
Class R-2 (13) $100
------------
(1) The Class A-1 Certificate will bear interest during each Interest Accrual
Period at a per annum rate equal to the lesser of (1) One-Month LIBOR plus
0.100% (0.200% after the first possible Optional Termination Date) and (2)
the WAC Cap.
(2) The Class A-2 Certificate will bear interest during each Interest Accrual
Period at a per annum rate equal to the lesser of (1) One-Month LIBOR plus
0.200% (0.400% after the first possible Optional Termination Date) and (2)
the WAC Cap.
(3) The Class A-3 Certificate will bear interest during each Interest Accrual
Period at a per annum rate equal to the lesser of (1) One-Month LIBOR plus
0.320% (0.640% after the first possible Optional Termination Date) and (2)
the WAC Cap.
(4) The Class M-1 Certificates will bear interest during each Interest Accrual
Period at a per annum rate equal to the lesser of (1) LIBOR plus 0.430%
(0.645% after the first possible Optional Termination Date) and (2) the
WAC Cap.
(5) The Class M-2 Certificates will bear interest during each Interest Accrual
Period at a per annum rate equal to the lesser of (1) LIBOR plus 0.650%
(0.975% after the first possible Optional Termination Date) and (2) the
WAC Cap.
(6) The Class M-3 Certificates will bear interest during each Interest Accrual
Period at a per annum rate equal to the lesser of (1) LIBOR plus 0.700%
(1.050% after the first possible Optional Termination Date) and (2) the
WAC Cap.
(7) The Class B-1 Certificates will bear interest during each Interest Accrual
Period at a per annum rate equal to the lesser of (1) LIBOR plus 1.180%
(1.770% after the first possible Optional Termination Date) and (2) the
WAC Cap.
(8) The Class B-2 Certificates will bear interest during each Interest Accrual
Period at a per annum rate equal to the lesser of (1) LIBOR plus 1.250%
(1.875% after the first possible Optional Termination Date) and (2) the
WAC Cap.
(9) The Class B-3 Certificate will bear interest during each Interest Accrual
Period at a per annum rate equal to the lesser of (1) One-Month LIBOR plus
1.900% (2.850% after the first possible Optional Termination Date) and (2)
the WAC Cap.
(10) The Class B-4 Interest will bear interest during each Interest Accrual
Period at a per annum rate equal to the lesser of (1) 6.000% (6.500% after
the first possible Optional Termination Date) and (2) the WAC Cap.
(11) The Class X Certificates will represent beneficial ownership of (i) the
Class X Interest, (ii) the Class IO Interest, (iii) the right to receive
Class IO Shortfalls, (iv) amounts in the Supplemental Interest Trust,
including the Interest Rate Swap Agreement subject to the obligation to
pay Net Swap Payments and Upper-Tier Carry Forward Amounts and, without
duplication, Basis Risk Carry Forward Amounts and (v) amounts in the
Excess Reserve Fund Account, subject to the obligation to make payments
from the Excess Reserve Fund Account in respect of Upper-Tier Carry
Forward Amounts and, without duplication, Basis Risk Carry Forward
Amounts. For federal income tax purposes, the Trustee will treat a Class X
Certificateholder's obligation to make payments of Basis Risk Carry
Forward Amounts and, without duplication, Upper-Tier Carry Forward Amounts
to the Principal Certificates from the Excess Reserve Fund Account and the
Supplemental Interest Trust as payments made pursuant to an interest rate
cap contract written by the Class X Certificateholders in favor of each
Class of Principal Certificates. Such rights of the Class X
Certificateholders and Principal 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.
(12) The Class R-1 Certificates do not have an interest rate. The Class R-1
Certificates represent ownership of the Class PT2-R Interest, the Class
LT-R Lower-Tier Interest and the Class UT-R Interest.
(13) The Class R-2 Certificates do not have an interest rate. The Class R-2
Certificates represent the residual interest in Pooling-Tier REMIC-1.
(14) Each of these Certificates will represent not only the ownership of the
Corresponding Class of Upper-Tier Regular Interest but also the right to
receive payments from the Excess Reserve Fund Account and the Supplemental
Interest Trust. Each of these Certificates will also be subject to the
obligation to pay Class IO Shortfalls as described in Section 8.13. For
federal income tax purposes, any amount distributed on the Principal
Certificates on any such Distribution Date in excess of the amount
distributable on their Corresponding Class of Upper-Tier Regular Interest
on such Distribution Date shall be treated as having been paid from the
Excess Reserve Fund Account or the Supplemental Interest Trust, as
applicable, and any amount distributable on such Corresponding Class of
Upper-Tier Regular Interest on such Distribution Date in excess of the
amount distributable on Principal Certificates on such Distribution Date
shall be treated as having been paid to the Supplemental Interest Trust,
all pursuant to, and as further provided in, Section 8.13. The Trustee
will treat a Principal Certificateholder's right to receive payments from
the Excess Reserve Fund Account and the Supplemental Interest Trust as
payments made pursuant to an interest rate cap contract written by the
Class X Certificateholders.
The minimum denomination for the Principal Certificates will be
$25,000, with integral multiples of $1 in excess thereof except that one
Certificate in each Class may be issued in a different amount. The minimum
denomination for (a) each Class of Residual Certificates $100, representing a
100% Percentage Interest in the related Class, (b) the Class P Certificates will
be a 1% Percentage Interest in such Class and (c) the Class X Certificates will
be a 1% Percentage Interest in such Class.
Set forth below are designations of Classes of Certificates to the
categories used herein:
Book-Entry Certificates...... All Classes of Certificates other than the
Physical Certificates.
Class A Certificates......... Class A-1, Class A-2 and Class A-3 Certificates.
Class R Certificates......... The Class R-1 and Class R-2 Certificates.
Class B Certificates......... Class B-1, Class B-2, Class B-3 and Class B-4
Certificates.
Class M Certificates......... Class M-1, Class M-2 and Class M-3 Certificates.
Delay Certificates........... The Fixed Rate Certificates.
ERISA-Restricted
Certificates............... Class R Certificates, Class P Certificates and
Class X Certificates; and any Certificate with a
rating below the lowest applicable permitted
rating under the Underwriters' Exemption.
Fixed Rate Certificates...... Class B-4 Certificates.
LIBOR Certificates........... The Class A-1, Class X-0, Xxxxx X-0, Class M-1,
Class M-2, Class M-3, Class B-1, Class B-2, Class
B-3 Certificates.
Non-Delay Certificates....... LIBOR Certificates.
Offered Certificates......... All Classes of Certificates other than the Private
Certificates.
Physical Certificates........ Class P Certificates, Class X Certificates and
Class R Certificates.
Principal Certificates....... Fixed Rate Certificates and LIBOR Certificates.
Private Certificates......... Class P Certificates and Class X Certificates.
Rating Agencies.............. Standard & Poor's and Moody's.
Regular Certificates......... All Classes of Certificates other than the Class P
Certificates and Class R Certificates.
Residual Certificates........ Class R-1 and Class R-2 Certificates.
Subordinated Certificates.... Class M-1, Class M-2, Class M-3, Class B-1, Class
B-2, Class B-3 and Class B-4 Certificates.
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:
Accepted Servicing Practices: (a) With respect to any Mortgage Loan
serviced by Countrywide, those mortgage servicing practices set forth in Section
3.01 of this Agreement; and (b) with respect to any Mortgage Loan serviced by
JPMorgan, the servicing and administration of such Mortgage Loan (i) in the same
manner in which, and with the same care, skill, prudence and diligence with
which JPMorgan generally services and administers similar mortgage loans with
similar mortgagors (A) for other third parties, giving due consideration to
customary and usual standards of practice of prudent institutional residential
mortgage lenders servicing their own mortgage loans or (B) held in JPMorgan's
own portfolio, whichever standard is higher, and (ii) in accordance with
applicable local, state and federal laws, rules and regulations.
Account: Any of the Collection Account, the Distribution Account,
any Escrow Account or the Excess Reserve Fund Account. Each Account shall be an
Eligible Account.
Accredited: Accredited Home Lenders, Inc., a California corporation,
and its successors in interest.
Accredited Mortgage Loan: Each Mortgage Loan purchased by the
Purchaser pursuant to the Accredited Purchase Agreement and identified as an
"Accredited Mortgage Loan" on the Mortgage Loan Schedule.
Accredited Purchase Agreement: The Flow Mortgage Loan Purchase and
Warranties Agreement, dated as of August 1, 2003, by and between Accredited and
the Purchaser, solely insofar as the Accredited Purchase Agreement relates to
the Accredited Mortgage Loans.
Accrued Certificate Interest Distribution Amount: With respect to
any Distribution Date for each Class of Principal Certificates, the amount of
interest accrued during the related Interest Accrual Period at the applicable
Pass-Through Rate on the related Class Certificate Balance immediately prior to
such Distribution Date, as reduced by such Class's share of Net Prepayment
Interest Shortfalls and Relief Act Interest Shortfalls for such Distribution
Date allocated to such Class pursuant to Section 4.02.
Acoustic: Acoustic Home Loans, LLC, a Delaware limited liability
company, and its successors in interest.
Acoustic Mortgage Loan: Each Mortgage Loan purchased by the
Purchaser pursuant to an Acoustic Purchase Agreement and identified as an
"Acoustic Mortgage Loan" on the Mortgage Loan Schedule.
Acoustic Purchase Agreement: The Flow Mortgage Loan Purchase and
Warranties Agreement, dated as of November 1, 2004, by and between Acoustic and
the Purchaser, solely insofar as the Acoustic Purchase Agreement relates to the
Acoustic Mortgage Loans.
Adjustable Rate Mortgage Loan: An adjustable rate Mortgage Loan
purchased pursuant to the Purchase Agreements.
Adjusted Net Mortgage Interest Rate: As to each Mortgage Loan and at
any time, the per annum rate equal to the Mortgage Interest Rate less the
Expense Fee Rate.
Adjustment Date: As to any Mortgage Loan, the first Due Date on
which the related Mortgage Interest Rate adjusts as set forth in the related
Mortgage Note and each Due Date thereafter on which the Mortgage Interest Rate
adjusts as set forth in the related Mortgage Note.
Advance: Any P&I Advance or Servicing Advance.
Advance Facility: A financing or other facility as described in
Section 10.07.
Advance Reimbursement Amounts: As defined in Section 10.07.
Advancing Person: The Person to whom any Servicer's rights under
this Agreement to be reimbursed for any P&I Advances or Servicing Advances have
been assigned pursuant to Section 10.07.
Affiliate: With respect to any Person, any other Person controlling,
controlled by or under common control with such first Person. For the purposes
of this definition, "control" means the power to direct the management and
policies of such Person, directly or indirectly, whether through the ownership
of voting securities, by contract or otherwise; and the terms "controlling" and
"controlled" have meanings correlative to the foregoing.
Agreement: This Pooling and Servicing Agreement and all amendments
or supplements hereto.
Applied Realized Loss Amount: With respect to any Distribution Date,
the amount, if any, by which the aggregate Class Certificate Balance of the
Principal Certificates after distributions of principal on such Distribution
Date exceeds the aggregate Stated Principal Balance of the Mortgage Loans for
such Distribution Date.
Appraised Value: (i) With respect to any First Lien Mortgage Loan,
the value of the related Mortgaged Property based upon the appraisal made for
the originator at the time of origination of the Mortgage Loan or the sale price
of the Mortgaged Property at such time of origination, whichever is less, and
(ii) with respect to any Second Lien Mortgage Loan, the value, determined
pursuant to the applicable Underwriting Guidelines, of the related Mortgaged
Property as of the origination of the Second Lien Mortgage Loan; provided,
however, that in the case of a refinanced Mortgage Loan, such value is based
solely upon the appraisal made at the time of origination of such refinanced
Mortgage Loan.
Assignment of Mortgage: An assignment of the Mortgage, notice of
transfer or equivalent instrument in recordable form (other than the assignee's
name and recording information not yet returned from the recording office),
reflecting the sale of the Mortgage to the Trust.
Available Funds: With respect to any Distribution Date and the
Mortgage Loans to the extent received by the Trustee (x) the sum of (i) all
scheduled installments of interest (net of the related Expense Fees) and
principal due on the Due Date on such Mortgage Loans in the related Due Period
and received on or prior to the related Determination Date, together with any
P&I Advances in respect thereof; (ii) all Condemnation Proceeds, Insurance
Proceeds and Liquidation Proceeds received during the related Prepayment Period
(in each case, net of unreimbursed expenses incurred in connection with a
liquidation or foreclosure and unreimbursed Advances, if any); (iii) all partial
or full prepayments on the Mortgage Loans received during the related Prepayment
Period together with all Compensating Interest paid by the applicable Servicer
in connection therewith (excluding Prepayment Premiums); (iv) all amounts
received with respect to such Distribution Date as the Substitution Adjustment
Amount or Repurchase Price in respect of a Deleted Mortgage Loan substituted for
or a Mortgage Loan repurchased by the Purchaser as of such Distribution Date;
(v) any Net Swap Receipts for such Distribution Date; and (vi) the proceeds
received with respect to the termination of the Trust Fund pursuant to clause
(a) of Section 9.01, reduced by (y) all amounts in reimbursement for P&I
Advances and Servicing Advances previously made with respect to the Mortgage
Loans, and other amounts as to which the Servicers, the Depositor, the Trustee
(or co-trustee) or the Custodian are entitled to be paid or reimbursed pursuant
to this Agreement.
Basic Principal Distribution Amount: With respect to any
Distribution Date, the excess of (i) the Principal Remittance Amount for such
Distribution Date over (ii) the Excess Overcollateralized Amount, if any, for
such Distribution Date.
Basis Risk Carry Forward Amount: With respect to each Class of
Principal Certificates, as of any Distribution Date, the sum of (A) if on such
Distribution Date the Pass-Through Rate for any Class of Principal Certificates
is based upon the WAC Cap, the excess, if any, of (i) the amount of interest
such Class of Principal Certificates would otherwise be entitled to receive on
such Distribution Date had such Pass-Through Rate not been subject to the WAC
Cap, over (ii) the amount of interest payable on such Class of Certificates on
such Distribution Date taking into account the WAC Cap and (B) the Basis Risk
Carry Forward Amount for such Class of Principal Certificates for all previous
Distribution Dates not previously paid, together with interest thereon at a rate
equal to the applicable Pass-Through Rate for such Class of Principal
Certificates for such Distribution Date, without giving effect to the WAC Cap.
Basis Risk Payment: For any Distribution Date, an amount equal to
the lesser of (i) the aggregate of the Basis Risk Carry Forward Amounts for such
Distribution Date and (ii) the Class X Distributable Amount (prior to any
reduction for Basis Risk Payments from the Excess Reserve Fund Account or any
Defaulted Swap Termination Payment).
Best's: Best's Key Rating Guide, as the same shall be amended from
time to time.
Book-Entry Certificates: As specified in the Preliminary Statement.
Business Day: Any day other than (i) Saturday or Sunday, or (ii) a
day on which banking and savings and loan institutions, in (a) the States of New
York, New Jersey, Arizona, Texas and California, (b) the State in which a
Servicer's servicing operations are located, or (c) the State in which the
Trustee's operations are located, are authorized or obligated by law or
executive order to be closed.
Certificate: Any one of the Certificates executed by the Trustee in
substantially the forms attached hereto as exhibits.
Certificate Balance: With respect to any Class of Principal
Certificates or Residual Certificates, 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 all distributions of principal
previously made with respect thereto and in the case of any Subordinated
Certificates, and reduced by the amount of any Applied Realized Loss Amounts
previously allocated to such Class of Subordinated Certificates; provided,
however, that immediately following the Distribution Date on which a Subsequent
Recovery is distributed, the Class Certificate Balances of any Class or Classes
of Certificates that have been previously reduced by Applied Realized Loss
Amounts will be increased, in order of seniority, by the amount of the
Subsequent Recovery distributed on such Distribution Date (up to the amount of
Applied Realized Loss Amounts allocated to such Class or Classes). The Class X
and Class P Certificates have no Certificate Balance.
Certificate Owner: With respect to a Book-Entry Certificate, the
Person who is the beneficial owner of such Book-Entry Certificate.
Certificate Register: The register maintained pursuant to Section
5.02.
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 Depositor or any affiliate of the Depositor 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 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 Depositor or any affiliate of the Depositor in
determining which Certificates are registered in the name of an affiliate of the
Depositor.
Certification: As defined in Section 8.12(b).
Class: All Certificates bearing the same class designation as set
forth in the Preliminary Statement.
Class A Certificates: As specified in the Preliminary Statement.
Class A Principal Distribution Amount: With respect to any
Distribution Date, the excess of (i) the aggregate Class Certificate Balances of
the Class A Certificates immediately prior to such Distribution Date over (ii)
the lesser of (A) 56.00% of the aggregate Stated Principal Balance of the
Mortgage Loans for such Distribution Date and (B) the excess, if any, of the
aggregate Stated Principal Balance of the Mortgage Loans for such Distribution
Date over the Overcollateralization Floor.
Class A-1 Certificates: All Certificates bearing the class
designation of "Class A-1."
Class A-2 Certificates: All Certificates bearing the class
designation of "Class A-2."
Class A-3 Certificates: All Certificates bearing the class
designation of "Class A-3."
Class B Certificates: As specified in the Preliminary Statement.
Class B-1 Certificates: All Certificates bearing the class
designation of "Class B-1."
Class B-1 Principal Distribution Amount: With respect to any
Distribution Date, the excess of (i) the sum of (A) the aggregate Class
Certificate Balances of the Class A Certificates (after taking into account the
distribution of the Class A Principal Distribution Amount on such Distribution
Date), (B) the Class Certificate Balance of the Class M-1 Certificates (after
taking into account the distribution of the Class M-1 Principal Distribution
Amount on such Distribution Date), (C) the Class Certificate Balance of the
Class M-2 Certificates (after taking into account the distribution of the Class
M-2 Principal Distribution Amount on such Distribution Date), (D) the Class
Certificate Balance of the Class M-3 Certificates (after taking into account the
distribution of the Class M-3 Principal Distribution Amount on such Distribution
Date), and (E) the Class Certificate Balance of the Class B-1 Certificates
immediately prior to such Distribution Date, over (ii) the lesser of (A) the
product of (x) 87.90% and (y) the aggregate Stated Principal Balance of the
Mortgage Loans for such Distribution Date, and (B) the excess, if any, of the
aggregate Stated Principal Balance of the Mortgage Loans for such Distribution
Date over the Overcollateralization Floor.
Class B-2 Certificates: All Certificates bearing the class
designation of "Class B-2."
Class B-2 Principal Distribution Amount: With respect to any
Distribution Date, the excess of (i) the sum of (A) the aggregate Class
Certificate Balances of the Class A Certificates (after taking into account the
distribution of the Class A Principal Distribution Amount on such Distribution
Date), (B) the Class Certificate Balance of the Class M-1 Certificates (after
taking into account the distribution of the Class M-1 Principal Distribution
Amount on such Distribution Date), (C) the Class Certificate Balance of the
Class M-2 Certificates (after taking into account the distribution of the Class
M-2 Principal Distribution Amount on such Distribution Date), (D) the Class
Certificate Balance of the Class M-3 Certificates (after taking into account the
distribution of the Class M-3 Principal Distribution Amount on such Distribution
Date), (E) the Class Certificate Balance of the Class B-1 Certificates (after
taking into account the distribution of the Class B-1 Principal Distribution
Amount on such Distribution Date), and (F) the Class Certificate Balance of the
Class B-2 Certificates immediately prior to such Distribution Date, over (ii)
the lesser of (A) the product of (x) 90.30% and (y) the aggregate Stated
Principal Balance of the Mortgage Loans for such Distribution Date, and (B) the
excess, if any, of the aggregate Stated Principal Balance of the Mortgage Loans
for such Distribution Date over the Overcollateralization Floor.
Class B-3 Certificates: All Certificates bearing the class
designation of "Class B-3."
Class B-3 Principal Distribution Amount: With respect to any
Distribution Date, the excess of (i) the sum of (A) the aggregate Class
Certificate Balances of the Class A Certificates (after taking into account the
distribution of the Class A Principal Distribution Amount on such Distribution
Date), (B) the Class Certificate Balance of the Class M-1 Certificates (after
taking into account the distribution of the Class M-1 Principal Distribution
Amount on such Distribution Date), (C) the Class Certificate Balance of the
Class M-2 Certificates (after taking into account the distribution of the Class
M-2 Principal Distribution Amount on such Distribution Date), (D) the Class
Certificate Balance of the Class M-3 Certificates (after taking into account the
distribution of the Class M-3 Principal Distribution Amount on such Distribution
Date), (E) the Class Certificate Balance of the Class B-1 Certificates (after
taking into account the distribution of the Class B-1 Principal Distribution
Amount on such Distribution Date), (F) the Class Certificate Balance of the
Class B-2 Certificates (after taking into account the distribution of the Class
B-2 Principal Distribution Amount on such Distribution Date), and (G) the Class
Certificate Balance of the Class B-3 Certificates immediately prior to such
Distribution Date over (ii) the lesser of (A) the product of (x) 92.80% and (y)
the aggregate Stated Principal Balance of the Mortgage Loans for such
Distribution Date, and (B) the excess, if any, of the aggregate Stated Principal
Balance of the Mortgage Loans for such Distribution Date over the
Overcollateralization Floor.
Class B-4 Certificates: All Certificates bearing the class
designation of "Class B-4."
Class B-4 Principal Distribution Amount: With respect to any
Distribution Date, the excess of (i) the sum of (A) the aggregate Class
Certificate Balances of the Class A Certificates (after taking into account the
distribution of the Class A Principal Distribution Amount on such Distribution
Date), (B) the Class Certificate Balance of the Class M-1 Certificates (after
taking into account the distribution of the Class M-1 Principal Distribution
Amount on such Distribution Date), (C) the Class Certificate Balance of the
Class M-2 Certificates (after taking into account the distribution of the Class
M-2 Principal Distribution Amount on such Distribution Date), (D) the Class
Certificate Balance of the Class M-3 Certificates (after taking into account the
distribution of the Class M-3 Principal Distribution Amount on such Distribution
Date), (E) the Class Certificate Balance of the Class B-1 Certificates (after
taking into account the distribution of the Class B-1 Principal Distribution
Amount on such Distribution Date), (F) the Class Certificate Balance of the
Class B-2 Certificates (after taking into account the distribution of the Class
B-2 Principal Distribution Amount on such Distribution Date), (G) the Class
Certificate Balance of the Class B-3 Certificates (after taking into account the
distribution of the Class B-3 Principal Distribution Amount on such Distribution
Date), and (H) the Class Certificate Balance of the Class B-4 Certificates
immediately prior to such Distribution Date, over (ii) the lesser of (A) the
product of (x) 95.60% and (y) the aggregate Stated Principal Balance of the
Mortgage Loans for such Distribution Date, and (B) the excess, if any, of the
aggregate Stated Principal Balance of the Mortgage Loans for such Distribution
Date over the Overcollateralization Floor.
Class Certificate Balance: With respect to any Class and as to any
date of determination, the aggregate of the Certificate Balances of all
Certificates of such Class as of such date.
Class IO Interest: As specified in the Preliminary Statement.
Class IO Shortfalls: As defined in Section 8.13. For the avoidance
of doubt, the Class IO Shortfall for any Distribution Date shall equal the
amount payable to the Class X Certificates in respect of amounts due to the Swap
Provider on such Distribution Date (other than Defaulted Swap Termination
Payments) in excess of the amount payable on the Class X Interest on such
Distribution Date, all as further provided in Section 8.13.
Class LT-R Interest: The residual interest in the Lower-Tier REMIC
as described in the Preliminary Statement and the related footnote thereto.
Class M Certificates: As specified in the Preliminary Statement.
Class M-1 Certificates: All Certificates bearing the class
designation of "Class M-1."
Class M-1 Principal Distribution Amount: With respect to any
Distribution Date, the excess of (i) the sum of (A) the aggregate Class
Certificate Balances of the Class A Certificates (after taking into account the
distribution of the Class A Principal Distribution Amount on such Distribution
Date), and (B) the Class Certificate Balance of the Class M-1 Certificates
immediately prior to such Distribution Date, over (ii) the lesser of (A) the
product of (x) 70.20% and (y) the aggregate Stated Principal Balance of the
Mortgage Loans for such Distribution Date, and (B) the excess, if any, of the
Stated Principal Balance of the Mortgage Loans for such Distribution Date over
the Overcollateralization Floor.
Class M-2 Certificates: All Certificates bearing the class
designation of "Class M-2."
Class M-2 Principal Distribution Amount: With respect to any
Distribution Date, the excess of (i) the sum of (A) the aggregate Class
Certificate Balances of the Class A Certificates (after taking into account the
distribution of the Class A Principal Distribution Amount on such Distribution
Date), (B) the Class Certificate Balance of the Class M-1 Certificates (after
taking into account the distribution of the Class M-1 Principal Distribution
Amount on such Distribution Date) and (C) the Class Certificate Balance of the
Class M-2 Certificates immediately prior to such Distribution Date, over (ii)
the lesser of (A) the product of (x) 81.70% and (y) the aggregate Stated
Principal Balance of the Mortgage Loans for such Distribution Date, and (B) the
excess, if any, of the Stated Principal Balance of the Mortgage Loans for such
Distribution Date over the Overcollateralization Floor.
Class M-3 Certificates: All Certificates bearing the class
designation of "Class M-3."
Class M-3 Principal Distribution Amount: With respect to any
Distribution Date, the excess of (i) the sum of (A) the aggregate Class
Certificate Balances of the Class A Certificates (after taking into account the
distribution of the Class A Principal Distribution Amount on such Distribution
Date), (B) the Class Certificate Balance of the Class M-1 Certificates (after
taking into account the distribution of the Class M-1 Principal Distribution
Amount on such Distribution Date), (C) the Class Certificate Balance of the
Class M-2 Certificates (after taking into account the distribution of the Class
M-2 Principal Distribution Amount on such Distribution Date) and (D) the Class
Certificate Balance of the Class M-3 Certificates immediately prior to such
Distribution Date, over (ii) the lesser of (A) the product of (x) 85.00% and (y)
the aggregate Stated Principal Balance of the Mortgage Loans for such
Distribution Date, and (B) the excess, if any, of the aggregate Stated Principal
Balance of the Mortgage Loans for such Distribution Date over the
Overcollateralization Floor.
Class P Certificates: All Certificates bearing the class designation
of "Class P."
Class PTR-2 Interest: The residual interest in Pooling-Tier REMIC-2
as described in the Preliminary Statement and the related footnote thereto.
Class R Certificates: As defined in the Preliminary Statement.
Class R-1 Certificates: All Certificates bearing the class
designation of "Class R-1."
Class R-2 Certificates: All Certificates bearing the class
designation of "Class R-2."
Class UT-R Interest: The residual interest in the Upper-Tier REMIC
as described in the Preliminary Statement and the related footnote thereto.
Class X Certificates: All Certificates bearing the class designation
of "Class X."
Class X Distributable Amount: On any Distribution Date, (i) as a
distribution in respect of interest, the amount of interest that has accrued on
the Class 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, without duplication, (ii) as
a distribution in respect of principal, any portion of the principal balance of
the Class X Interest which is distributable as an Overcollateralization
Reduction Amount, minus (iii) any amounts paid as a Basis Risk Payment from the
Excess Reserve Fund Account or any Defaulted Swap Termination Payment.
Class X Interest: The Upper-Tier Regular Interest represented by the
Class X Certificates as specified and described in the Preliminary Statement and
the related footnote thereto.
Closing Date: March 30, 2005.
Code: The Internal Revenue Code of 1986, including any successor or
amendatory provisions.
Collection Accounts: As defined in Section 3.10(a).
Combined Loan-to-Value Ratio or CLTV: As of the date of origination
and as to any Second Lien Mortgage Loan, the ratio, expressed as a percentage,
of (a) the sum of (i) the outstanding principal balance of the Second Lien
Mortgage Loan as of the date of origination and (ii) the outstanding principal
balance as of the date of origination of any mortgage loan or mortgage loans
that are senior to or equal in priority to the Second Lien Mortgage Loan and
which are secured by the same Mortgaged Property to (b) the Appraised Value.
Compensating Interest: For any Distribution Date, the lesser of (a)
the Prepayment Interest Shortfall, if any, for such Distribution Date, with
respect to Principal Prepayments during the related Prepayment Period, and (b)
the Servicing Fee payable to the applicable Servicer for such Distribution Date.
Condemnation Proceeds: All awards, compensation and/or settlements
in respect of a Mortgaged Property, whether permanent or temporary, partial or
entire, by exercise of the power of eminent domain or condemnation, to the
extent not required to be released to a Mortgagor in accordance with the terms
of the related Mortgage Loan Documents.
Conduit Mortgage Loan: Each Mortgage Loan purchased by the Purchaser
pursuant to its mortgage conduit program and identified as a "Conduit Mortgage
Loan" on the Mortgage Loan Schedule.
Corporate Trust Office: The designated office of the Trustee in the
State of California at which at any particular time its corporate trust business
with respect to this Agreement is administered, which office at the date of the
execution of this Agreement is located at 0000 Xxxx Xx. Xxxxxx Xxxxx, Xxxxx Xxx,
Xxxxxxxxxx 00000-0000, Attn: Trust Administration-GS05H2, facsimile no. (714)
247-6478 and which is the address to which notices to and correspondence with
the Trustee should be directed.
Corresponding Class: The Class of interests in one Trust REMIC
created under this Agreement that corresponds to the Class of interests in the
other Trust REMIC or to a Class of Certificates in the manner set out below:
Lower-Tier Upper-Tier Corresponding
Class Designation Regular Interest Class of Certificates
---------------------- ---------------------- ----------------------------
Class LT-A-1 Class A-1 Class A-1
Class LT-A-2 Class A-2 Class A-2
Class LT-A-3 Class A-3 Class A-3
Class LT-M-1 Class M-1 Class M-1
Class LT-M-2 Class M-2 Class M-2
Class LT-M-3 Class M-3 Class M-3
Class LT-B-1 Class B-1 Class B-1
Class LT-B-2 Class B-2 Class B-2
Class LT-B-3 Class B-3 Class B-3
Class LT-B-4 Class B-4 Class B-4
N/A Class X Class X
Corresponding Crossover Distribution Date: The Distribution Date in
the month and year specified in the Preliminary Statement corresponding to a
Pooling-Tier REMIC 2 IO Interest.
Corresponding Pooling-Tier REMIC 2 IO Interests: As described in the
Preliminary Statement.
Countrywide: Countrywide Home Loans Servicing LP, a Texas limited
partnership, and its successors in interest.
Countrywide Serviced Mortgaged Loan: Each Mortgage Loan with respect
to which Countrywide is listed as Servicer on the Mortgage Loan Schedule.
Custodial File: With respect to each Mortgage Loan, any Mortgage
Loan Document which is delivered to the Trustee or the Custodian, as applicable,
or which at any time comes into the possession of the Trustee or the Custodian,
as applicable.
Custodian: X.X. Xxxxxx Trust Company, National Association, a
national banking association, and its successors in interest.
Custodian Fee: As to each Mortgage Loan and any Distribution Date,
an amount equal to one month's interest at the Custodian Fee Rate on the Stated
Principal Balance of such Mortgage Loan as of the preceding Distribution Date
(or as of the Closing Date in the case of the first Distribution Date) or, in
the event of any payment of interest which accompanies a Principal Prepayment in
Full made by the Mortgagor, interest at the Custodian Fee Rate on the Stated
Principal Balance of such Mortgage Loan for the period covered by such payment
of interest.
Custodian Fee Rate: With respect to each Mortgage Loan, 0.00125% per
annum.
Cut-off Date: March 1, 2005.
Cut-off Date Pool Principal Balance: The aggregate Stated Principal
Balances of all Mortgage Loans as of the Cut-off Date.
Cut-off Date Principal Balance: As to any Mortgage Loan, the Stated
Principal Balance thereof as of the close of business on the Cut-off Date (after
giving effect to payments of principal due on that date, whether or not
received).
Data File: As defined in Section 4.03(e).
Data File Delivery Date: As defined in Section 4.03(e).
Data Tape Information: The information provided by the Original Loan
Sellers or the applicable Servicer as of the Cut-off Date to the Depositor
setting forth the following information with respect to each Mortgage Loan: (1)
the applicable Original Loan Seller's Mortgage Loan identifying number; (2) the
Mortgagor's name; (3) the street address of the Mortgaged Property including the
city, state and zip code; (4) a code indicating whether the Mortgaged Property
is owner-occupied, a second home or investment property; (5) the number and type
of residential units constituting the Mortgaged Property (i.e., a single family
residence, a 2-4 family residence, a unit in a condominium project or a unit in
a planned unit development or a manufactured housing unit); (6) the original
months to maturity or the remaining months to maturity from the Cut-off Date, in
any case based on the original amortization schedule and, if different, the
maturity expressed in the same manner but based on the actual amortization
schedule; (7) with respect to First Lien Mortgage Loans, the Loan-to-Value Ratio
at origination, and with respect to Second Lien Mortgage Loans, the Combined
Loan-to-Value Ratio at origination; (8) the Mortgage Interest Rate as of the
Cut-off Date; (9) the date on which the Scheduled Payment was due on the
Mortgage Loan and, if such date is not consistent with the Due Date currently in
effect, such Due Date; (10) the stated maturity date; (11) the amount of the
Scheduled Payment as of the Cut-off Date; (12) the last payment date on which a
Scheduled Payment was actually applied to pay interest and the outstanding
principal balance; (13) the original principal amount of the Mortgage Loan; (14)
the principal balance of the Mortgage Loan as of the close of business on the
Cut-off Date, after deduction of payments of principal due and collected on or
before the Cut-off Date; (15) with respect to Adjustable Rate Mortgage Loans,
the Adjustment Date; (16) with respect to Adjustable Rate Mortgage Loans, the
Gross Margin; (17) with respect to Adjustable Rate Mortgage Loans, the Lifetime
Rate Cap under the terms of the Mortgage Note; (18) with respect to Adjustable
Rate Mortgage Loans, a code indicating the type of Index; (19) with respect to
Adjustable Rate Mortgage Loans, the Periodic Mortgage Interest Rate Cap under
the terms of the Mortgage Note; (20) with respect to Adjustable Rate Mortgage
Loans, the Periodic Mortgage Interest Rate Floor under the terms of the Mortgage
Note; (21) the type of Mortgage Loan (i.e., fixed rate, adjustable rate, first
lien, second lien); (22) a code indicating the purpose of the loan (i.e.,
purchase, rate and term refinance, equity take-out refinance); (23) a code
indicating the documentation style (i.e., full documentation, limited
documentation or stated income); (24) the loan credit classification (as
described in the Underwriting Guidelines); (25) whether such Mortgage Loan
provides for a Prepayment Premium; (26) the Prepayment Premium period of such
Mortgage Loan, if applicable; (27) a description of the Prepayment Premium, if
applicable; (28) the Mortgage Interest Rate as of origination; (29) the credit
risk score (FICO score) at origination; (30) the date of origination; (31) the
date of the purchase of the Mortgage Loan, if applicable; (32) a code indicating
whether the Mortgage Loan is assumable; (33) the Mortgage Interest Rate
adjustment period; (34) the Mortgage Interest Rate floor; (35) the Mortgage
Interest Rate calculation method (i.e., 30/360, simple interest, other); (36) a
code indicating whether the Mortgage Loan has been modified; (37) the one-year
payment history; (38) the Due Date for the first Scheduled Payment; (39) the
original Scheduled Payment due; (40) with respect to the related Mortgagor, the
debt-to-income ratio; (41) the Appraised Value of the Mortgaged Property; (42)
the sales price of the Mortgaged Property if the Mortgage Loan was originated in
connection with the purchase of the Mortgaged Property; (43) whether the
Mortgage Loan is covered by PMI policy and name of insurer; (44) with respect to
each MERS Designated Mortgage Loan, the MERS identification number; (45) a code
indicating if a Mortgage Loan is or has had a 30-Day Delinquency; (46) the
applicable Servicer; and (47) a code indicating if the Mortgage Loan is an
Interest Only Mortgage Loan. With respect to the related Mortgage Loans in the
aggregate: (1) the number of Mortgage Loans; (2) the current aggregate
outstanding principal balance of the Mortgage Loans; (3) the weighted average
Mortgage Interest Rate of the Mortgage Loans; and (4) the weighted average
maturity of the Mortgage Loans.
Debt Service Reduction: With respect to any Mortgage Loan, a
reduction by a court of competent jurisdiction in a proceeding under the United
States Bankruptcy Code in the Scheduled Payment for such Mortgage Loan which
became final and non appealable, except for such a reduction resulting from a
Deficient Valuation or any reduction that results in a permanent forgiveness of
principal.
Defaulted Swap Termination Payment: Any Swap Termination Payment
required to be paid by the Trust to the Swap Provider pursuant to the Interest
Rate Swap Agreement as a result of an Event of Default (as defined in the
Interest Rate Swap Agreement) with respect to which the Swap Provider is the
defaulting party or a Termination Event (as defined in the Interest Rate Swap
Agreement) (other than Illegality or a Tax Event that is not a Tax Event Upon
Merger (each as defined in the Interest Rate Swap Agreement )) with respect to
which the Swap Provider is the sole Affected Party (as defined in the Interest
Rate Swap Agreement).
Deficient Valuation: With respect to any Mortgage Loan, a valuation
of the related Mortgaged Property by a court of competent jurisdiction in an
amount less than the then outstanding principal balance of the Mortgage Loan,
which valuation results from a proceeding initiated under the United States
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).
Delay Certificates: As specified in the Preliminary Statement.
Deleted Mortgage Loan: As defined in Section 2.03(d).
Denomination: With respect to each Certificate, the amount set forth
on the face thereof as the "Initial Certificate Balance of this Certificate" or
the Percentage Interest appearing on the face thereof.
Depositor: GS Mortgage Securities Corp., a Delaware corporation, and
its successors 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(a)(5) of the Uniform Commercial Code
of the State of New York.
Depository Institution: Any depository institution or trust company,
including the Trustee, that (a) is incorporated under the laws of the United
States of America or any State thereof, (b) is subject to supervision and
examination by federal or state banking authorities and (c) has outstanding
unsecured commercial paper or other short-term unsecured debt obligations that
are rated P-1 by Moody's, F1+ by Fitch and A-1 by Standard & Poor's (in each
case, to the extent they are designated as Rating Agencies in the Preliminary
Statement).
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: With respect to each Distribution Date, the 18th
day of the calendar month in which such Distribution Date occurs or, if such day
is not a Business Day, the immediately preceding Business Day.
Distribution Account: The separate Eligible Account created and
maintained by the Trustee pursuant to Section 3.27(b) in the name of the Trustee
for the benefit of the Certificateholders and designated "Deutsche Bank National
Trust Company in trust for registered holders of GSAMP Trust 2005-HE2 Mortgage
Pass-Through Certificates, Series 2005-HE2." Funds in the Distribution Account
shall be held in trust for the Certificateholders for the uses and purposes set
forth in this Agreement and may be invested in Permitted Investments.
Distribution Date: The 25th day of each calendar month after the
initial issuance of the Certificates or, if such day is not a Business Day, the
next succeeding Business Day, commencing in April 2005.
Document Certification and Exception Report: The report attached to
Exhibit F hereto.
Due Date: The day of the month on which the Scheduled Payment is due
on a Mortgage Loan, exclusive of any days of grace.
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: Either (i) an account 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 a subsidiary of a holding company, the short-term unsecured debt
obligations of such holding company) are rated "A-1" by Standard & Poor's, "F-1"
by Fitch and "P-1" by Moody's (in each case, to the extent they are designated
as Rating Agencies in the Preliminary Statement) (and a comparable rating if
another Rating Agency is specified by the Depositor by written notice to the
Servicers) at the time any amounts are held on deposit therein, (ii) a trust
account or accounts maintained with a federal or state chartered depository
institution or trust company acting in its fiduciary capacity or (iii) 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.
ERISA: The Employee Retirement Income Security Act of 1974, as
amended.
ERISA-Qualifying Underwriting: A best efforts or firm commitment
underwriting or private placement that meets the requirements of Prohibited
Transaction Exemption ("PTE") 2002-41, 67 Fed. Reg. 54487 (2002) (or any
successor thereto), or any substantially similar administrative exemption
granted by the U.S. Department of Labor.
ERISA-Restricted Certificate: As specified in the Preliminary
Statement.
Escrow Account: The Eligible Account or Accounts established and
maintained pursuant to Section 3.09(b).
Escrow Payments: As defined in Section 3.09(b) of this Agreement.
Event of Default: As defined in Section 7.01.
Excess Overcollateralized Amount: With respect to any Distribution
Date, the excess, if any, of (a) the Overcollateralized Amount on such
Distribution Date over (b) the Specified Overcollateralized Amount for such
Distribution Date.
Excess Reserve Fund Account: The separate Eligible Account created
and maintained by the Trustee pursuant to Sections 3.27(a) in the name of the
Trustee for the benefit of the Regular Certificateholders and designated
"Deutsche Bank National Trust Company in trust for registered holders of GSAMP
Trust 2005-HE2, Mortgage Pass-Through Certificates, Series 2005-HE2." Funds in
the Excess Reserve Fund Account shall be held in trust for the Regular
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.
Expense Fee Rate: As to each Mortgage Loan, a per annum rate equal
to the sum of the Servicing Fee Rate, the Custodian Fee Rate and the Trustee Fee
Rate.
Expense Fees: As to each Mortgage Loan, the sum of the Servicing
Fee, the Custodian Fee and the Trustee Fee.
Extra Principal Distribution Amount: As of any Distribution Date,
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 Mae: The Federal National Mortgage Association and its
successors in interest.
Xxxxxx Xxx Guides: The Xxxxxx Mae Seller's Guide and the Xxxxxx Xxx
Servicer's Guide and all amendments or additions thereto.
FDIC: The Federal Deposit Insurance Corporation, and its successors
in interest.
Final Recovery Determination: With respect to any defaulted Mortgage
Loan or any REO Property (other than a Mortgage Loan or REO Property purchased
by the Depositor or the Purchaser, as contemplated by this Agreement), a
determination made by the applicable Servicer that all Insurance Proceeds,
Condemnation Proceeds, Liquidation Proceeds and other payments or recoveries
which the applicable Servicer, in its reasonable good faith judgment, expects to
be finally recoverable in respect thereof have been so recovered. The applicable
Servicer shall maintain records, prepared by a Servicing Officer, of each Final
Recovery Determination made thereby.
Final Scheduled Distribution Date: The Final Scheduled Distribution
Date for each Class of Certificates is the Distribution Date occurring in March
2035.
First Lien Mortgage Loan: Any Mortgage Loan secured by a first lien
Mortgage on the related Mortgaged Property.
First NLC: First NLC Financial Services, LLC, a Florida limited
liability company, and its successors in interest.
First NLC Mortgage Loan: Each Mortgage Loan purchased by the
Purchaser pursuant to a First NLC Purchase Agreement and identified as a "First
NLC Mortgage Loan" on the Mortgage Loan Schedule.
First NLC Purchase Agreement: The Mortgage Loan Purchase and
Warranties Agreement, dated as of March 25, 2004, as supplemented by that
certain letter dated as of March 25, 2004 and as amended by Amendment No. 1 to
Purchase Agreement, dated as of July 15, 2004, each by and between First NLC and
the Purchaser, solely insofar as the First NLC Purchase Agreement relates to the
First NLC Mortgage Loans.
Fitch: Fitch, Inc., and its successors in interest. If Fitch is
designated as a Rating Agency in the Preliminary Statement, for purposes of
Section 10.05(b) the address for notices to Fitch shall be Fitch, Inc., Xxx
Xxxxx Xxxxxx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: MBS Monitoring - GSAMP
Trust 2005-HE2, or such other address as Fitch may hereafter furnish to the
Depositor, the Servicer, the Custodian and the Trustee.
Fixed Rate Mortgage Loan: A fixed rate Mortgage Loan.
Forbearance: As defined in Section 3.07(a).
Xxxxxxx Mac: The Federal Home Loan Mortgage Corporation, a corporate
instrumentality of the United States created and existing under Title III of the
Emergency Home Finance Act of 1970, as amended, and its successors in interest.
Gross Margin: With respect to each Adjustable Rate Mortgage Loan,
the fixed percentage amount set forth in the related Mortgage Note to be added
to the applicable Index to determine the Mortgage Interest Rate.
Home Loan: A Mortgage Loan categorized as "Home Loan" pursuant to
Appendix E of Standard & Poor's Glossary.
Index: As to each Adjustable Rate Mortgage Loan, the index from time
to time in effect for the adjustment of the Mortgage Interest Rate set forth as
such on the related Mortgage Note.
Insurance Proceeds: With respect to each Mortgage Loan, proceeds of
insurance policies insuring the Mortgage Loan or the related Mortgaged Property.
Interest Accrual Period: With respect to each Class of Non-Delay
Certificates and each Corresponding Class of Lower-Tier Regular Interests and
each Corresponding Class of Upper-Tier Regular Interests any Distribution Date,
the period commencing on the immediately preceding Distribution Date (or, for
the initial Distribution Date, the Closing Date) and ending on the day
immediately preceding the current Distribution Date. With respect to the Delay
Certificates, Corresponding Class of Lower-Tier Regular Interests, each
Pooling-Tier Regular Interest and any Distribution Date, the calendar month
immediately preceding the month in which such Distribution Date occurs. For
purposes of computing interest accruals on each Class of Non-Delay Certificates,
each Corresponding Class of Lower-Tier Regular Interest and each Corresponding
Class of Upper-Tier Regular Interest, each Interest Accrual Period has the
actual number of days in such period and each year is assumed to have 360 days.
For purposes of computing interest accruals on each Class of Delay Certificates,
each Corresponding Lower-Tier Regular Interest, each Interest Accrual Period has
30 days in such period and each year is assumed to have 360 days.
Interest Only Mortgage Loan: A Mortgage Loan for which the related
Mortgage Note provides for Scheduled Payments of interest only for a period of
time as specified in the related Mortgage Note.
Interest Rate Swap Agreement: The interest rate swap agreement,
dated as of March 29, 2005, between Xxxxxxx Xxxxx Capital Markets, L.P. and
Xxxxxxx Sachs Mortgage Company.
Interest Remittance Amount: With respect to any Distribution Date,
that portion of Available Funds attributable to interest relating to the
Mortgage Loans.
Interim Servicing Agreement: Collectively, the Flow Interim
Servicing Agreement, dated as of October 1, 2004, between the Purchaser and
Acoustic relating to the Acoustic Mortgage Loans, and the Interim Servicing
Agreement, dated as of November 1, 2004, between the Purchaser and First NLC
relating to certain First NLC Mortgage Loans.
Investment Account: As defined in Section 3.12(a).
Investor: With respect to each MERS Designated Mortgage Loan, the
Person named on the MERS System as the investor pursuant to the MERS Procedures
Manual.
JPMorgan: JPMorgan Chase Bank, National Association, a national
banking association, and its successors in interest.
JPMorgan Serviced Mortgage Loan: Each Mortgage Loan with respect to
which JPMorgan is listed as Servicer on the Mortgage Loan Schedule.
Investor Based Exemption: Any of Prohibited Transaction Class
Exemption ("PTCE") 84-14 (for transactions by independent "qualified
professional asset managers"), PTCE 91-38 (for transactions by bank collective
investment funds), XXXX 00-0 (for transactions by insurance company pooled
separate accounts), PTCE 95-60 (for transactions by insurance company general
accounts) or PTCE 96-23 (for transactions effected by "in-house asset
managers"), or any comparable exemption available under Similar Law.
Late Collections: With respect to any Mortgage Loan and any Due
Period, all amounts received after the Remittance Date immediately following
such Due Period, whether as late payments of Scheduled Payments or as Insurance
Proceeds, Condemnation Proceeds, Liquidation Proceeds or otherwise, which
represent late payments or collections of principal and/or interest due (without
regard to any acceleration of payments under the related Mortgage and Mortgage
Note) but delinquent for such Due Period and not previously recovered.
LIBOR: With respect to any Interest Accrual Period for the LIBOR
Certificates, the rate determined by the Trustee on the related LIBOR
Determination Date on the basis of the offered rate for one-month U.S. dollar
deposits as such rate appears on Telerate Page 3750 as of 11:00 a.m. (London
time) on such date; provided, that if such rate does not appear on Telerate Page
3750, the rate for such date will be determined on the basis of the rates at
which one-month U.S. dollar deposits are offered by the Reference Banks at
approximately 11:00 a.m. (London time) on such date to prime banks in the London
interbank market. In such event, the Trustee shall request the principal London
office of each of the Reference Banks to provide a quotation of its rate. If at
least two such quotations are provided, the rate for that date will be the
arithmetic mean of the quotations (rounded upwards if necessary to the nearest
whole multiple of 1/16%). If fewer than two quotations are provided as
requested, the rate for that date will be the arithmetic mean of the rates
quoted by major banks in New York City, selected by the Trustee (after
consultation with the Depositor), at approximately 11:00 a.m. (New York City
time) on such date for one-month U.S. dollar deposits of leading European banks.
LIBOR Certificates: As specified in the Preliminary Statement.
LIBOR Determination Date: With respect to any Interest Accrual
Period for the LIBOR Certificates, the second London Business Day preceding the
commencement of such Interest Accrual Period.
Lifetime Rate Cap: The provision of each Mortgage Note related to an
Adjustable Rate Mortgage Loan which provides for an absolute maximum Mortgage
Interest Rate thereunder. The Mortgage Interest Rate during the terms of each
Adjustable Rate Mortgage Loan shall not at any time exceed the Mortgage Interest
Rate at the time of origination of such Adjustable Rate Mortgage Loan by more
than the amount per annum set forth on the Mortgage Loan Schedule.
Liquidated Mortgage Loan: With respect to any Distribution Date, a
defaulted Mortgage Loan (including any REO Property) which was liquidated or
charged-off in the calendar month preceding the month of such Distribution Date
and as to which the applicable Servicer has certified (in accordance with this
Agreement) that it has made a Final Recovery Determination.
Liquidation Event: With respect to any Mortgage Loan, any of the
following events: (i) such Mortgage Loan is paid in full; (ii) a Final Recovery
Determination is made as to such Mortgage Loan; or (iii) such Mortgage Loan is
removed from coverage under this Agreement by reason of its being purchased,
sold or replaced pursuant to or as contemplated by this Agreement. With respect
to any REO Property, either of the following events: (i) a Final Recovery
Determination is made as to such REO Property; or (ii) such REO Property is
removed from coverage under this Agreement by reason of its being purchased
pursuant to this Agreement.
Liquidation Proceeds: The amounts, other than Insurance Proceeds,
Condemnation Proceeds or those received following the acquisition of REO
Property, received in connection with the liquidation of a defaulted Mortgage
Loan, whether through a trustee's sale, foreclosure sale or otherwise, including
any Subsequent Recoveries.
Loan-to-Value Ratio or LTV: With respect to any Mortgage Loan, at
any time, the ratio (expressed as a percentage) of the principal balance of the
Mortgage Loan as of the date of determination, to the Appraisal Value of the
related Mortgaged Property.
London Business Day: Any day on which dealings in deposits of United
States dollars are transacted in the London interbank market.
Lower-Tier Interest Rate: As described in the Preliminary Statement.
Lower-Tier Principal Amount: As described in the Preliminary
Statement.
Lower-Tier Regular Interest: Each of the Class LT-A-1, Class LT-A-2,
Class LT-A-3, Class LT-M-1, Class LT-M-2, Class LT-M-3, Class LT-B-1, Class
LT-B-2, Class LT-B-3, Class LT-B-4, Class LT-IO and Class LT-Accrual Interests
as described in the Preliminary Statement.
Lower-Tier REMIC: As described in the Preliminary Statement.
Majority Class X Certificateholder: The Holder or Holders of a
majority of the Percentage Interests in the Class X Certificates.
Mandalay: United Pacific Mortgage Co. Inc., a California general
partnership, d/b/a Mandalay Mortgage, and its successors in interest.
Mandalay Mortgage Loan: Each Mortgage Loan purchased by the
Purchaser pursuant to a Mandalay Purchase Agreement and identified as a
"Mandalay Mortgage Loan" on the Mortgage Loan Schedule.
Mandalay Purchase Agreement: The Master Mortgage Loan Purchase
Agreement, dated as of December 6, 2004, by and between Mandalay and the
Purchaser, solely insofar as the Mandalay Purchase Agreement relates to the
Mandalay Mortgage Loans.
Market Value Change Report: A report setting forth changes in
property value of the Mortgaged Properties in a format agreed upon by the
applicable Servicer and the Depositor.
MERS: As defined in Section 2.01.
MERS Designated Mortgage Loan: Mortgage Loans for which (a) the
applicable Original Loan Seller has designated or will designate MERS as, and
has taken or will take such action as is necessary to cause MERS to be, the
mortgagee of record, as nominee for the applicable Original Loan Seller, in
accordance with MERS Procedure Manual and (b) the applicable Original Loan
Seller has designated or will designate the Trust as the Investor on the MERS(R)
System.
MERS Procedure Manual: The MERS Procedures Manual, as it may be
amended, supplemented or otherwise modified from time to time.
MERS(R) System: MERS mortgage electronic registry system, as more
particularly described in the MERS Procedures Manual.
Monthly Statement: The statement made available to the
Certificateholders pursuant to Section 4.03.
Moody's: Xxxxx'x Investors Service, Inc., and its successors in
interest. 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 Pass-Through Group, or such other address
as Moody's may hereafter furnish to the Depositor, the Servicers, the Custodian
and the Trustee.
Mortgage: The mortgage, deed of trust or other instrument identified
on the Mortgage Loan Schedule as securing a Mortgage Note.
Mortgage File: The items pertaining to a particular Mortgage Loan
contained in either the Servicing File or Custodial File.
Mortgage Interest Rate: The annual rate of interest borne on a
Mortgage Note with respect to each Mortgage Loan.
Mortgage Loan: An individual Mortgage Loan which is the subject of
this Agreement, each Mortgage Loan originally sold and subject to this Agreement
being identified on the Mortgage Loan Schedule, which Mortgage Loan includes,
without limitation, the Mortgage File, the Custodial File, the Servicing File,
the Scheduled Payments, Principal Prepayments, Liquidation Proceeds,
Condemnation Proceeds, Insurance Proceeds, REO Disposition proceeds, Prepayment
Premiums and all other rights, benefits, proceeds and obligations arising from
or in connection with such Mortgage Loan, excluding replaced or repurchased
Mortgage Loans.
Mortgage Loan Documents: The mortgage loan documents pertaining to
each Mortgage Loan.
Mortgage Loan Schedule: A schedule of Mortgage Loans annexed hereto
as Schedule I, such schedule setting forth the following information with
respect to each Mortgage Loan as of the Cut-off Date: (1) the applicable
Original Loan Seller's Mortgage Loan identifying number; (2) the Mortgagor's
name; (3) the street address of the Mortgaged Property including the city, state
and zip code; (4) a code indicating whether the Mortgaged Property is
owner-occupied, a second home or investment property; (5) the number and type of
residential units constituting the Mortgaged Property (i.e., a single family
residence, a 2-4 family residence, a unit in a condominium project or a unit in
a planned unit development or a manufactured housing unit); (6) the original
months to maturity or the remaining months to maturity from the Cut-off Date, in
any case based on the original amortization schedule and, if different, the
maturity expressed in the same manner but based on the actual amortization
schedule; (7) with respect to First Lien Mortgage Loans, the Loan-to-Value Ratio
at origination, and with respect to Second Lien Mortgage Loans, the Combined
Loan-to-Value Ratio at origination; (8) the Mortgage Interest Rate as of the
Cut-off Date; (9) the date on which the Scheduled Payment was due on the
Mortgage Loan and, if such date is not consistent with the Due Date currently in
effect, such Due Date; (10) the stated maturity date; (11) the amount of the
Scheduled Payment as of the Cut-off Date; (12) the last payment date on which a
Scheduled Payment was actually applied to pay interest and the outstanding
principal balance; (13) the original principal amount of the Mortgage Loan; (14)
the principal balance of the Mortgage Loan as of the close of business on the
Cut-off Date, after deduction of payments of principal due and collected on or
before the Cut-off Date; (15) with respect to Adjustable Rate Mortgage Loans,
the Adjustment Date; (16) with respect to Adjustable Rate Mortgage Loans, the
Gross Margin; (17) with respect to Adjustable Rate Mortgage Loans, the Lifetime
Rate Cap under the terms of the Mortgage Note; (18) with respect to Adjustable
Rate Mortgage Loans, a code indicating the type of Index; (19) with respect to
Adjustable Rate Mortgage Loans, the Periodic Mortgage Interest Rate Cap under
the terms of the Mortgage Note; (20) with respect to Adjustable Rate Mortgage
Loans, the Periodic Mortgage Interest Rate Floor under the terms of the Mortgage
Note; (21) the type of Mortgage Loan (i.e., fixed rate, adjustable rate, first
lien, second lien); (22) a code indicating the purpose of the loan (i.e.,
purchase, rate and term refinance, equity take-out refinance); (23) a code
indicating the documentation style (i.e., full documentation, limited
documentation or stated income); (24) the loan credit classification (as
described in the Underwriting Guidelines); (25) whether such Mortgage Loan
provides for a Prepayment Premium; (26) the Prepayment Premium period of such
Mortgage Loan, if applicable; (27) a description of the Prepayment Premium, if
applicable; (28) the Mortgage Interest Rate as of origination; (29) the credit
risk score (FICO score) at origination; (30) the date of origination; (31) the
date of the purchase of the Mortgage Loan, if applicable; (32) a code indicating
whether the Mortgage Loan is assumable; (33) the Mortgage Interest Rate
adjustment period; (34) the Mortgage Interest Rate floor; (35) the Mortgage
Interest Rate calculation method (i.e., 30/360, simple interest, other); (36) a
code indicating whether the Mortgage Loan has been modified; (37) the one-year
payment history; (38) the Due Date for the first Scheduled Payment; (39) the
original Scheduled Payment due; (40) with respect to the related Mortgagor, the
debt-to-income ratio; (41) the Appraised Value of the Mortgaged Property; (42)
the sales price of the Mortgaged Property if the Mortgage Loan was originated in
connection with the purchase of the Mortgaged Property; (43) whether the
Mortgage Loan is covered by PMI policy and name of insurer; (44) with respect to
each MERS Designated Mortgage Loan, the MERS identification number; (45) a code
indicating if a Mortgage Loan is or has had a 30 Day Delinquency; (46) whether
the Mortgage Loan is an Accredited Mortgage Loan, an Acoustic Mortgage Loan, a
First NLC Mortgage Loan, a Mandalay Mortgage Loan or a Conduit Mortgage Loan;
(47) the applicable Servicer for such Mortgage Loan; (48) a code indicating if
the Mortgage Loan is an Interest Only Mortgage Loan; and (49) a code indicating
whether such Mortgage Loan is a Home Loan. With respect to the related Mortgage
Loans in the aggregate: (1) the number of Mortgage Loans; (2) the current
aggregate outstanding principal balance of the Mortgage Loans; (3) the weighted
average Mortgage Interest Rate of the Mortgage Loans; and (4) the weighted
average maturity of the Mortgage Loans.
Mortgage Note: The note or other evidence of the indebtedness of a
Mortgagor under a Mortgage Loan, including all riders thereto.
Mortgaged Property: The real property (or leasehold estate, if
applicable) identified on the Mortgage Loan Schedule as securing repayment of
the debt evidenced by a Mortgage Note.
Mortgagor: The obligor(s) on a Mortgage Note.
Net Monthly Excess Cash Flow: For any Distribution Date the amount
remaining for distribution pursuant to subsection 4.02(a)(iii) (before giving
effect to distributions pursuant to such subsection).
Net Prepayment Interest Shortfall: For any Distribution Date, the
amount by which the sum of the Prepayment Interest Shortfalls for such
Distribution Date exceeds the sum of the Compensating Interest payments made
with respect to such Distribution Date.
Net Swap Payment: With respect to any Distribution Date, any net
payment (other than a Swap Termination Payment) made by the Trust to the Swap
Provider on the related Fixed Rate Payer Payment Date (as defined in the
Interest Rate Swap Agreement).
Net Swap Receipt: With respect to any Distribution Date, any net
payment (other than a Swap Termination Payment) made by the Swap Provider to the
Trust on the related Floating Rate Payer Payment Date (as defined in the
Interest Rate Swap Agreement).
NIM Issuer: The entity established as the issuer of the NIM
Securities.
NIM Securities: Any debt securities secured or otherwise backed by
some or all of the Class X and Class P Certificates that are rated by one or
more rating agencies.
NIM Trustee: The trustee for the NIM Securities.
90+ Day Delinquent Mortgage Loan: Each Mortgage Loan with respect to
which any portion of a Scheduled Payment is, as of the last day of the prior Due
Period, three months or more past due (without giving effect to any grace
period), including each Mortgage Loan in foreclosure, all REO Property and each
Mortgage Loan for which the Mortgagor has filed for bankruptcy.
Non-Delay Certificates: As specified in the Preliminary Statement.
Non-Permitted Transferee: As defined in Section 8.11(e).
Nonrecoverable P&I Advance: Any P&I Advance previously made or
proposed to be made in respect of a Mortgage Loan or REO Property that, in the
good faith business judgment of the applicable Servicer, will not or, in the
case of a proposed P&I Advance, would not be ultimately recoverable from related
late payments, Insurance Proceeds, Condemnation Proceeds or Liquidation Proceeds
on such Mortgage Loan or REO Property as provided herein.
Nonrecoverable Servicing Advance: Any Servicing Advances previously
made or proposed to be made in respect of a Mortgage Loan or REO Property,
which, in the good faith business judgment of the applicable Servicer, will not
or, in the case of a proposed Servicing Advance, would not, be ultimately
recoverable from related Insurance Proceeds, Condemnation Proceeds, 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.
Offered Certificates: As specified in the Preliminary Statement.
Officer's Certificate: A certificate signed by an officer of the
applicable Servicer with responsibility for the servicing of the Mortgage Loans
required to be serviced by such Servicer and listed on a list delivered to the
Trustee pursuant to this Agreement.
Opinion of Counsel: A written opinion of counsel, who may be
in-house counsel for a Servicer or a Subservicer, reasonably acceptable to the
Trustee; provided, that any Opinion of Counsel relating to (a) qualification of
any Trust REMIC as a REMIC or (b) compliance with the REMIC Provisions, must
(unless otherwise stated in such Opinion of Counsel) be an opinion of counsel
who (i) is in fact independent of such Servicer of the Mortgage Loans, (ii) does
not have any material direct or indirect financial interest in such Servicer of
the Mortgage Loans or in an affiliate of either and (iii) is not connected with
such Servicer of the Mortgage Loans as an officer, employee, director or person
performing similar functions.
Optional Termination Date: The date determined as follows:
(i) JPMorgan (at the direction of the Majority Class X
Certificateholder (as evidenced on the Certificate Register)), pursuant to
Section 9.01, shall cause the Optional Termination Date to occur on any
Distribution Date on which the aggregate Stated Principal Balance of the
Mortgage Loans, as of the last day of the related Due Period, is equal to 10% or
less of the Cut off Date Pool Principal Balance (provided, that if the Depositor
or an Affiliate of the Depositor is one of the Holders constituting such
majority, then there must be at least one other unaffiliated Holder constituting
such majority and the Class X Certificates held by such Holder, or unaffiliated
Holders in the aggregate, must represent at least a 10% Percentage Interest in
the Class X Certificates); or
(ii) JPMorgan may cause the Optional Termination Date to occur on
Distribution Date on which the aggregate Stated Principal Balance of the
Mortgage Loans, as of the last day of the related Due Period, is equal to 5% or
less of the Cut-off Date Pool Principal Balance.
In the event that JPMorgan acting for its own account and/or
JPMorgan (at the direction of the Majority Class X Certificateholder) have the
right to cause the Optional Termination Date to occur at the same time, the
first Person to provide notice to exercise such right will have the right to
purchase the Mortgage Loans.
Original Loan Sellers: With respect to each Accredited Mortgage
Loan, Accredited, with respect to each Acoustic Mortgage Loan, Acoustic, with
respect to each First NLC Mortgage Loan, First NLC, with respect to each
Mandalay Mortgage Loan, Mandalay and with respect to each Conduit Mortgage Loan,
the Person who sold such Conduit Mortgage Loan to the Purchaser.
Original Purchase Date: With respect to any Mortgage Loan, the date
on which the applicable Original Loan Seller sold such Mortgage Loan to the
Purchaser pursuant to the applicable Purchase Agreement.
OTS: Office of Thrift Supervision, and any successor thereto.
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 cancelled 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 Stated 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 Mortgage Loan prior to such Due Date.
Overcollateralized Amount: As of any Distribution Date, the excess,
if any, of (a) the aggregate Stated Principal Balance of the Mortgage Loans for
such Distribution Date over (b) the aggregate of the Class Certificate Balances
of the Certificates as of such Distribution Date (after giving effect to the
payment of the Principal Remittance Amount on such Certificates on such
Distribution Date).
Overcollateralization Deficiency: With respect to any Distribution
Date, 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 Floor: With respect to any Distribution Date,
0.50% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.
Overcollateralization Reduction Amount: With respect to any
Distribution Date, an amount equal to the lesser of (a) the Excess
Overcollateralized Amount and (b) the Net Monthly Excess Cash Flow.
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.
P&I Advance: As to any Mortgage Loan or REO Property, any advance
made by the applicable Servicer in respect of any Remittance Date representing
the aggregate of all payments of principal and interest, net of the Servicing
Fee, that were due during the related Due Period on the Mortgage Loans and that
were delinquent on the related Remittance Date, plus certain amounts
representing assumed payments not covered by any current net income on the
Mortgaged Properties acquired by foreclosure or deed in lieu of foreclosure as
determined pursuant to Section 4.01.
Pass-Through Margin: With respect to each Class of LIBOR
Certificates, the following percentages: Class A-1 Certificates, 0.100%; Class
A-2 Certificates, 0.200%; Class A-3 Certificates, 0.320%; Class M-1
Certificates, 0.430%; Class M-2 Certificates, 0.650%; Class M-3 Certificates,
0.700%; Class B-1 Certificates, 1.180%; Class B-2 Certificates, 1.250% and Class
B-3 Certificates, 1.900%. On the first possible Optional Termination Date, the
Pass-Through Margins shall increase to: Class A-1 Certificates, 0.200%; Class
A-2 Certificates, 0.400%; Class A-3 Certificates, 0.640%; Class M-1
Certificates, 0.645%; Class M-2 Certificates, 0.975%; Class M-3 Certificates,
1.050%; Class B-1 Certificates, 1.770%; Class B-2 Certificates, 1.875%; and
Class B-3 Certificates, 2.850%.
Pass-Through Rate: For each Class of Regular Certificates, each
Pooling-Tier REMIC-1 Regular Interest, each Pooling-Tier REMIC 2 Regular
Interest, each Lower-Tier Regular Interest and each Upper-Tier Regular Interest,
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 Mortgage Interest Rate Cap: With respect to each Adjustable
Rate Mortgage Loan, the provision of each Mortgage Note which provides for an
absolute maximum amount by which the Mortgage Interest Rate therein may increase
or decrease on an Adjustment Date above or below the Mortgage Interest Rate
previously in effect. The Periodic Mortgage Interest Rate Cap for each
Adjustable Rate Mortgage Loan is the rate set forth on the Mortgage Loan
Schedule.
Periodic Mortgage Interest Rate Floor: With respect to each
Adjustable Rate Mortgage Loan, the provision of each Mortgage Note which
provides for an absolute minimum amount by which the Mortgage Interest Rate
therein may increase or decrease on an Adjustment Date above or below the
Mortgage Interest Rate previously in effect. The Periodic Mortgage Interest Rate
Floor for each Adjustable Rate Mortgage Loan is the rate set forth on the
Mortgage Loan Schedule.
Permitted Investments: Any one or more of the following obligations
or securities acquired at a purchase price of not greater than par, regardless
of whether issued by a Servicer, the Trustee or any of their respective
Affiliates:
(i) direct obligations of, or obligations fully guaranteed as to
timely payment of principal and interest by, the United States or any
agency or instrumentality thereof, provided such obligations are backed by
the full faith and credit of the United States;
(ii) demand and time deposits in, certificates of deposit of, or
bankers' acceptances (which shall each have an original maturity of not
more than 90 days and, in the case of bankers' acceptances, shall in no
event have an original maturity of more than 365 days or a remaining
maturity of more than 30 days) denominated in United States dollars and
issued by any Depository Institution and rated "P-1" by Moody's, "A-1+" by
S&P and "F1+" by Fitch (in each case, to the extent they are designated as
Rating Agencies in the Preliminary Statement);
(iii) repurchase obligations with respect to any security described
in clause (i) above entered into with a Depository Institution (acting as
principal);
(iv) securities bearing interest or sold at a discount that are
issued by any corporation incorporated under the laws of the United States
of America or any state thereof and that are rated by each Rating Agency
that rates such securities in its highest long-term unsecured rating
categories at the time of such investment or contractual commitment
providing for such investment;
(v) commercial paper (including both non-interest-bearing discount
obligations and interest-bearing obligations payable on demand or on a
specified date not more than 30 days after the date of acquisition
thereof) that is rated by each Rating Agency that rates such securities in
its highest short-term unsecured debt rating available at the time of such
investment; (vi) units of money market funds, including money market funds
advised by the Depositor or the Trustee or an Affiliate thereof, that have
been rated "Aaa" by Moody's, "AAAm" or "AAAm-G" by Standard & Poor's and
at least "AA" by Fitch (in each case, to the extent they are designated as
Rating Agencies in the Preliminary Statement); and
(vii) if previously confirmed in writing to the Trustee, any other
demand, money market or time deposit, or any other obligation, security or
investment, as may be acceptable to the Rating Agencies as a permitted
investment of funds backing "Aaa" or "AAA" rated securities;
provided, however, that no instrument described hereunder shall evidence either
the right to receive (a) only interest with respect to the obligations
underlying such instrument or (b) both principal and interest payments derived
from obligations underlying such instrument and the interest and principal
payments with respect to such instrument provide a yield to maturity at par
greater than 120% of the yield to maturity at par of the underlying obligations.
For investments in the Distribution Account (except during the Trustee Float
Period), only the obligations or securities (or instruments which invest in the
obligations or securities) specified in clause (i) above shall constitute
Permitted Investments.
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)(1) 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 U.S.
Person or a U.S. Person with respect to whom income from a 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 U.S.
Person, (vi) an "electing large partnership" within the meaning of Section 775
of the Code 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 Xxxxxxx Mac, a majority of its board
of directors is not selected by such government unit.
Person: Any individual, corporation, partnership, joint venture,
association, limited liability company, joint-stock company, trust,
unincorporated organization or government, or any agency or political
subdivision thereof.
Physical Certificates: As specified in the Preliminary Statement.
Plan: As defined in Section 5.02(b).
Pool Stated Principal Balance: As to any Distribution Date, the
aggregate of the Stated Principal Balances of the Mortgage Loans for such
Distribution Date that were Outstanding Mortgage Loans on the Due Date in the
related Due Period.
Pooling-Tier Interest Rate: As specified in the Preliminary
Statement.
Pooling-Tier REMIC-1: As described in the Preliminary Statement.
Pooling-Tier REMIC-1 Interest Rate: As described in the Preliminary
Statement.
Pooling-Tier REMIC-1 Principal Amount: As described in the
Preliminary Statement.
Pooling-Tier REMIC-1 Regular Interest: As described in the
Preliminary Statement.
Pooling-Tier REMIC-1 WAC Rate: With respect to the Mortgage Loans as
of any Distribution Date, a per annum rate equal to (a) the weighted average of
the Mortgage Interest Rates for each Mortgage Loan (in each case, less than the
applicable Expense Fee Rate) then in effect on the beginning of the related Due
Period on the Mortgage Loans, multiplied by (b) 30 divided by the actual number
of days in the related Interest Accrual Period.
Pooling-Tier REMIC-2: As described in the Preliminary Statement.
Pooling-Tier REMIC-2 Interest Rate: As described in the Preliminary
Statement.
Pooling-Tier REMIC 2 IO Interest: Any of the Pooling-Tier REMIC-2
Regular Interests with the designation "IO" in its name.
Pooling-Tier REMIC 2 Principal Amount: As described in the
Preliminary Statement.
Pooling-Tier REMIC 2 Regular Interest: As described in the
Preliminary Statement.
Prepayment Interest Shortfall: With respect to any Remittance Date,
the sum of, for each Mortgage Loan that was, during the related Prepayment
Period, the subject of a Principal Prepayment that was applied by the applicable
Servicer to reduce the outstanding principal balance of such Mortgage Loan on a
date preceding the Due Date in the succeeding Prepayment Period, an amount equal
to the product of (a) the Mortgage Interest Rate net of the Servicing Fee Rate
for such Mortgage Loan, (b) the amount of the Principal Prepayment for such
Mortgage Loan, (c) 1/360 and (d) the number of days commencing on the date on
which such Principal Prepayment was applied and ending on the last day of the
related Prepayment Period.
Prepayment Period: With respect to any Distribution Date, the
calendar month preceding the month in which such Distribution Date occurs.
Prepayment Premium: Any prepayment premium, penalty or charge
collected by the applicable Servicer with respect to a Mortgage Loan from a
Mortgagor in connection with any voluntary Principal Prepayment pursuant to the
terms of the related Mortgage Note.
Principal Certificates: As specified in the Preliminary Statement.
Principal Distribution Amount: For any Distribution Date, 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 full or partial payment or other recovery
of principal on a Mortgage Loan (including upon liquidation of a Mortgage Loan)
which is received in advance of its scheduled Due Date, excluding any Prepayment
Premium and which is not accompanied by an amount of interest representing
scheduled interest due on any date or dates in any month or months subsequent to
the month of prepayment.
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,
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
Mortgage Loan due during such Due Period and received by the applicable Servicer
on or prior to the related Determination Date or advanced by the applicable
Servicer for the related Remittance Date (ii) all Principal Prepayments received
during the related Prepayment Period, (iii) all Liquidation Proceeds,
Condemnation Proceeds and Insurance Proceeds on the Mortgage Loans allocable to
principal actually collected by the Servicers during the related Prepayment
Period, (iv) the portion of the Repurchase 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 Remittance Date for the current
Distribution Date, (v) the portion of all Substitution Adjustment Amounts
allocable to principal with respect to the substitutions of Mortgage Loans that
occur during the calendar month in which such Distribution Date occurs, and (vi)
the allocable portion of the proceeds received with respect to the termination
of the Trust Fund pursuant to clause (a) of Section 9.01 (to the extent such
proceeds relate to principal).
Privacy Laws: Title V of the Xxxxx-Xxxxx-Xxxxxx Act of 1999, as
amended, and all applicable regulations promulgated thereunder.
Private Certificates: As specified in the Preliminary Statement.
Prospectus Supplement: The Prospectus Supplement, dated March 24,
2005, relating to the Offered Certificates.
PTCE 95-60: As defined in Section 5.02(b).
PUD: A planned unit development.
Purchase Agreement: The Accredited Purchase Agreement, the Acoustic
Purchase Agreement, the First NLC Purchase Agreement, the Mandalay Purchase
Agreement or, with respect to any Conduit Mortgage Loans, the Master Loan
Purchase Agreement by and between the related Original Loan Seller and the
Purchaser, as applicable.
Purchaser: Xxxxxxx Xxxxx Mortgage Company, a New York limited
partnership, and its successors in interest, as purchaser of the Mortgage Loans
under the Purchase Agreements.
Rating Agency: Each of the Rating Agencies specified in the
Preliminary Statement. If 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 or rating category of a Rating Agency shall mean such
rating category without giving effect to any modifiers. For purposes of Section
10.05(b), the addresses for notices to each Rating Agency shall be the address
specified therefor in the definition corresponding to the name of such Rating
Agency, or such other address as either such Rating Agency may hereafter furnish
to the Depositor and the Servicers.
Realized Losses: With respect to any date of determination and any
Liquidated Mortgage Loan, the amount, if any, by which (a) the unpaid principal
balance of such Liquidated Mortgage Loan together with accrued and unpaid
interest thereon exceeds (b) the Liquidation Proceeds with respect thereto net
of the expenses incurred by the related Servicer in connection with the
liquidation of such Liquidated Mortgage Loan and net of the amount of
unreimbursed Servicing Advances with respect to such Liquidated Mortgage Loan.
Record Date: With respect to any Distribution Date, the close of
business on the last Business Day of the related Interest Accrual Period;
provided, however, that for any Certificate issued in definitive form, the
Record Date shall be the close of business on the last Business Day of the month
preceding the month in which such applicable Distribution Date occurs.
Reference Bank: As defined in Section 4.04.
Regular Certificates: As specified in the Preliminary Statement.
Relief Act Interest Shortfall: With respect to any Distribution Date
and any Mortgage Loan, any reduction in the amount of interest collectible on
such Mortgage Loan for the most recently ended Due Period as a result of the
application of the Servicemembers Civil Relief Act, or any similar state
statutes.
REMIC: A "real estate mortgage investment conduit" within the
meaning of Section 860D of the Code.
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.
Remittance Date: With respect to any Distribution Date, no later
than 12:00 PM, Central Time on the Business Day immediately preceding such
Distribution Date.
REO Disposition: The final sale by the applicable Servicer of any
REO Property.
REO Imputed Interest: As to any REO Property, for any period, an
amount equivalent to interest (at the Mortgage Interest Rate net of the
Servicing Fee Rate that would have been applicable to the related Mortgage Loan
had it been outstanding) on the unpaid principal balance of the Mortgage Loan as
of the date of acquisition thereof (as such balance is reduced pursuant to
Section 3.15 by any income from the REO Property treated as a recovery of
principal).
REO Property: A Mortgaged Property acquired by the Trust Fund
through foreclosure or deed-in-lieu of foreclosure in connection with a
defaulted Mortgage Loan.
Reporting Date: The 18th day of each calendar month or the
immediately following Business Day if the 18th is not a Business Day.
Representations and Warranties Agreement: The Representations and
Warranties Agreement, dated as of March 30, 2005, by and between the Depositor
and the Purchaser, a copy of which is attached hereto as Exhibit P.
Repurchase Price: With respect to any Mortgage Loan repurchased by
the Purchaser, an amount equal to the sum of (i) the unpaid principal balance of
such Mortgage Loan as of the date of repurchase, (ii) interest on such unpaid
principal balance of such Mortgage Loan at the Mortgage Interest Rate from the
last date through which interest has been paid and distributed to the Trustee to
the date of repurchase, (iii) all unreimbursed Servicing Advances (or, with
respect to any First NLC Mortgage Loan repurchased by the Purchaser,
unreimbursed Servicing Advances reasonably incurred by the applicable Servicer)
and (iv) all expenses incurred (or, with respect to any First NLC Mortgage Loan
repurchased by the Purchaser, reasonably incurred) by the applicable Servicer,
the Trust or the Trustee, as the case may be, in respect of a breach or defect,
including, without limitation, expenses arising out of the applicable Servicer's
or Trustee's, as the case may be, enforcement of the Purchaser's repurchase
obligations, as applicable, to the extent not included in clause (iii), and (v)
any costs and damages incurred by the Trust in connection with any violation by
such Mortgage Loan of any predatory lending law or abusive lending law.
Request for Release: The Request for Release submitted by a Servicer
to the Custodian or the Trustee, as applicable, substantially in the form of
Exhibit J.
Residual Certificates: As specified in the Preliminary Statement.
Responsible Officer: When used with respect to the Trustee, any vice
president, any assistant vice president, any assistant secretary, any assistant
treasurer, any associate or any other officer of the Trustee customarily
performing functions similar to those performed by any of the above designated
officers who at such time shall be officers 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 and who shall have direct
responsibility for the administration of this Agreement.
Rule 144A Letter: As defined in Section 5.02(b).
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.
Second Lien Mortgage Loan: A Mortgage Loan secured by a second lien
Mortgage on the related Mortgaged Property.
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 aggregate Class
Certificate Balance of the Subordinated 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 Stated Principal Balance of the Mortgage Loans for such
Distribution Date.
Senior Specified Enhancement Percentage: As of any date of
determination, 56.00%.
Servicer: With respect to (i) each Accredited Mortgage Loan,
JPMorgan, (ii) each Acoustic Mortgage Loan, Countrywide after the Servicing
Transfer Date, (iii) each First NLC Mortgage Loan, Countrywide after the
Servicing Transfer Date with respect to each Countrywide Serviced Mortgage Loan
and JPMorgan with respect to each JPMorgan Serviced Mortgage Loan, and (iv) each
Mandalay Mortgage Loan and each Conduit Mortgage Loan, Countrywide, and in any
case, if a successor servicer is appointed hereunder, such successor servicer.
Prior to the Servicing Transfer Date, "Servicer" shall mean Acoustic with
respect to the Acoustic Mortgage Loans, or First NLC with respect to certain
First NLC Mortgage Loans previously identified to the Trustee by the Depositor
or its designee.
Servicer Remittance Report: As defined in Section 4.03(d).
Servicing Advances: The reasonable "out-of-pocket" costs and
expenses (including legal fees) incurred prior to, on, or after the Cut-off Date
by the applicable Servicer in the performance of its servicing obligations in
connection with a default, delinquency or other unanticipated event, including,
but not limited to, the cost of (i) the preservation, restoration, inspection
and protection of a Mortgaged Property, (ii) any enforcement or judicial
proceedings, including foreclosures and litigation, in respect of a particular
Mortgage Loan, (iii) the management (including reasonable fees in connection
therewith) and liquidation of any REO Property, (iv) the performance of its
obligations under Sections 3.01, 3.09, 3.13 and 3.15. Servicing Advances also
include any reasonable "out-of-pocket" costs and expenses (including legal fees)
incurred by the applicable Servicer in connection with executing and recording
instruments of satisfaction, deeds of reconveyance or Assignments of Mortgage in
connection with any satisfaction or foreclosures in respect of any Mortgage Loan
to the extent not recovered from the Mortgagor or otherwise payable under this
Agreement and (v) obtaining or correcting any legal documentation required to be
included in the Mortgage Files and necessary for the applicable Servicer to
perform its obligations under this Agreement. No Servicer shall be required to
make any Nonrecoverable Servicing Advances.
Servicing Fee: With respect to each Servicer, each Mortgage Loan
serviced by such Servicer and any Distribution Date, an amount equal to the
product of (i) one-twelfth of the Servicing Fee Rate and (ii) the Stated
Principal Balance of such Mortgage Loan as of the first day of the calendar
month preceding the month in which such Distribution Date occurs. Such fee shall
be payable monthly, and shall be pro rated for any portion of a month during
which the Mortgage Loan is serviced by such Servicer under this Agreement. The
Servicing Fee is payable solely from the interest portion (including recoveries
with respect to interest from Liquidation Proceeds, Insurance Proceeds,
Condemnation Proceeds and proceeds received with respect to REO Properties, to
the extent permitted by Section 3.11) of such Scheduled Payment collected by
such Servicer or as otherwise provided under Section 3.11.
Servicing Fee Rate: With respect to each Mortgage Loan, 0.50% per
annum.
Servicing File: With respect to each Mortgage Loan, the file
retained by the applicable Servicer consisting of originals or copies of all
documents in the Mortgage File which are not delivered to the Trustee in the
Custodial File and copies of the Mortgage Loan Documents set forth in Exhibit K
hereto.
Servicing Officer: Any officer of any Servicer involved in, or
responsible for, the administration and servicing of the Mortgage Loans whose
name and facsimile signature appear on a list of servicing officers furnished to
the Trustee by such Servicer on the Closing Date pursuant to this Agreement, as
such list may from time to time be amended.
Servicing Transfer Costs: All reasonable out-of-pocket costs and
expenses incurred by the Trustee in connection with the transfer of servicing
from a terminated Servicer, including, without limitation, any such costs or
expenses associated with the complete transfer of all servicing data and the
completion, correction or manipulation of such servicing data as may be required
by the Trustee to correct any errors or insufficiencies in the servicing data or
otherwise to enable the Trustee (or any successor Servicer appointed pursuant to
Section 7.02) to service the Mortgage Loans properly and effectively.
Servicing Transfer Date: On or about April 1, 2005.
Similar Law: As defined in Section 5.02(b).
60+ Day Delinquent Mortgage Loan: Each Mortgage Loan with respect to
which any portion of a Scheduled 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 Mortgage Loan in foreclosure, all REO Property and each Mortgage Loan for
which the Mortgagor has filed for bankruptcy.
Specified Overcollateralized Amount: Prior to the Stepdown Date, an
amount equal to 2.20% of the Cut-off Date Pool Principal Balance. On and after
the Stepdown Date, an amount equal to 4.40% of the aggregate Stated Principal
Balance of the Mortgage Loans for such Distribution Date, subject, until the
Class Certificate Balance of each Class of Principal Certificates has been
reduced to zero, to a minimum amount equal to the Overcollateralization Floor;
provided, however, that if, on any Distribution Date, a Trigger Event has
occurred, the Specified Overcollateralized Amount shall not be reduced to the
applicable percentage of the then current aggregate Stated Principal Balance of
the Mortgage Loans until the Distribution Date on which a Trigger Event is no
longer occurring; provided, further, that when the Class Certificate Balance of
each Class of Principal Certificates has been reduced to zero, the Specified
Overcollateralized Amount will thereafter equal zero.
Standard & Poor's: Standard & Poor's Ratings Services, a division of
The XxXxxx-Xxxx Companies, Inc., and its successors in interest. If Standard &
Poor's is designated as a Rating Agency in the Preliminary Statement, for
purposes of Section 10.05(b) the address for notices to Standard & Poor's shall
be Standard & Poor's, 00 Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention:
Residential Mortgage Surveillance Group - GSAMP Trust 2005-HE2, or such other
address as Standard & Poor's may hereafter furnish to the Depositor, the
Servicers, the Custodian and the Trustee.
Standard & Poor's Glossary: Version 5.6 of the Standard & Poor's
LEVELS(R) Glossary.
Start-up Day: As defined in Section 2.06.
Stated Principal Balance: As to each Mortgage Loan and as of any
date of determination, (i) the principal balance of the Mortgage Loan at the
Cut-off Date after giving effect to payments of principal due on or before such
date, minus (ii) all amounts previously remitted to the Trustee with respect to
the related Mortgage Loan representing payments or recoveries of principal
including advances in respect of scheduled payments of principal. For purposes
of any Distribution Date, the Stated Principal Balance of any Mortgage Loan will
give effect to any scheduled payments of principal received by the related
Servicer on or prior to the related Determination Date or advanced by the
related Servicer for the related Remittance Date and any unscheduled principal
payments and other unscheduled principal collections received during the related
Prepayment Period, and the Stated Principal Balance of any Mortgage Loan that
has prepaid in full or has become a Liquidated Mortgage Loan during the related
Prepayment Period shall be zero.
Stepdown Date: The earlier to occur of (a) the date on which the
aggregate Class Certificate Balances of the Class A Certificates have been
reduced to zero, and (b) the later to occur of (i) the Distribution Date in
April 2008, and (ii) the first Distribution Date on which the Senior Enhancement
Percentage is greater than or equal to the Senior Specified Enhancement
Percentage.
Subordinated Certificates: As specified in the Preliminary
Statement.
Subsequent Recoveries: Amounts received with respect to any
Liquidated Mortgage Loan after it has become a Liquidated Mortgage Loan.
Subservicer: As defined in Section 3.02(a).
Subservicing Account: As defined in Section 3.08.
Subservicing Agreements: As defined in Section 3.02(a).
Substitute Mortgage Loan: A "Qualified Substitute Mortgage Loan" as
that term is defined in the Representations and Warranties Agreement.
Substitution Adjustment Amount: Any amount to be paid in connection
with a Substitute Mortgage Loan pursuant to fourth full paragraph of Section 3
of the Representations and Warranties Agreement, and any additional amounts
required to be paid by the Purchaser in connection with such a substitution.
Supplemental Interest Trust: The corpus of a trust created pursuant
to Section 4.06 of this Agreement, consisting of the Interest Rate Swap
Agreement, the Class IO Interest and the right to receive Class IO Shortfalls,
subject to the obligation to pay amounts specified in Section
4.06.
Swap LIBOR: With respect to any Distribution Date (and the related
Interest Accrual Period), the product of (i) USD-LIBOR-BBA (as used in the
Interest Swap Agreement), (ii) two, and (iii) the quotient of (a) the actual
number of days in the Interest Accrual Period for the Principal Certificates
divided by (b) 30.
Swap Provider: Xxxxxxx Sachs Mitsui Marine Derivative Products,
L.P., a Delaware limited partnership, and its successors in interest.
Swap Termination Payment: Any payment payable by the Trust or the
Swap Provider upon termination of the Interest Rate Swap Agreement as a result
of an Event of Default (as defined in the Interest Rate Swap Agreement) or a
Termination Event (as defined in the Interest Rate Swap Agreement).
Tax Matters Person: The Holder of the (i) Class R-2 and (ii) Class
R-1 Certificates designated as "tax matters person" of (i) Pooling-Tier REMIC-1,
and (ii) Pooling-Tier REMIC 2, the Lower-Tier REMIC and the Upper-Tier REMIC,
respectively, in the manner provided under Treasury Regulations Section
1.860F-4(d) and Treasury Regulations Section 301.6231(a)(7)-1.
Tax Service Contract: As defined in Section 3.09(a).
Telerate Page 3750: The display page currently so designated on the
Bridge Telerate Service (or such other page as may replace that page on that
service for displaying comparable rates or prices).
Termination Price: As defined in Section 9.01.
30 Day Delinquency: The failure of the Mortgagor to make any
Scheduled Payment due under the Mortgage Note on or prior to the date which is
30 days after such payment's Due Date.
Total Monthly Excess Spread: As to any Distribution Date, an amount
equal to the excess if any, of (i) the interest collected on the Mortgage Loans
received by the Servicers on or prior to the related Determination Date or
advanced by the Servicers for the related Remittance Date (net of Expense Fees)
and plus any Net Swap Receipts and less any Net Swap Payments for such
Distribution Date, over (ii) the sum of the interest payable to the Principal
Certificates on such Distribution Date pursuant to Section 4.02(a)(i).
Transfer: Any direct or indirect transfer or sale of any Ownership
Interest in a Residual Certificate.
Transfer Affidavit: As defined in Section 5.02(c).
Transferor Certificate: As defined in Section 5.02(b).
Trigger Event: With respect to any Distribution Date, a Trigger
Event exists if (i) the quotient (expressed as a percentage) of (1) the rolling
three month average of the aggregate unpaid principal balance of 60+ Day
Delinquent Mortgage Loans, divided by (2) the aggregate unpaid principal balance
of the Mortgage Loans as of the last day of the related Due Period, equals or
exceeds 36.00% of the Senior Enhancement Percentage as of the last day of the
prior Due Period 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 Cut-off Date Pool
Principal Balance, exceeds the applicable percentages set forth below with
respect to such Distribution Date:
Distribution Date Occurring In Loss Percentage
------------------------------ ---------------
April 2008 through March 2009 3.750% for the first month, plus an
additional 1/12th of 2.000% for
each month thereafter (e.g.,
approximately 3.917% in May 2008)
April 2009 through March 2010 5.750% for the first month, plus an
additional 1/12th of 1.750% for
each month thereafter (e.g.,
approximately 5.896% in May 2009)
April 2010 through March 2011 7.500% for the first month, plus an
additional 1/12th of 0.500% for
each month thereafter (e.g.,
approximately 7.542% in May 2010)
April 2011 and thereafter 8.000%
Trust: The express trust created hereunder in Section 2.01(c).
Trust Fund: The corpus of the trust created hereunder consisting of
(i) the Mortgage Loans and all interest and principal received on or with
respect thereto after the related Cut-off Date, other than such amounts which
were due on the Mortgage Loans on or before the related Cut-off Date; (ii) the
Collection Account, the Excess Reserve Fund Account, the Distribution Account,
and all amounts deposited therein pursuant to the applicable provisions of this
Agreement; (iii) property that secured a Mortgage Loan and has been acquired by
foreclosure, deed-in-lieu of foreclosure or otherwise; (iv) the Interest Rate
Swap Agreement; (v) the Interim Servicing Agreements, (solely insofar as the
Interim Servicing Agreements relate to the Mortgage Loans); (vi) the Depositor's
rights under the Representations and Warranties Agreement; (vii) the
Supplemental Interest Trust; and (viii) all proceeds of the conversion,
voluntary or involuntary, of any of the foregoing.
Trust REMIC: Any of Pooling-Tier REMIC-1, Pooling-Tier REMIC 2, the
Lower-Tier REMIC or the Upper-Tier REMIC, as applicable.
Trustee: Deutsche Bank National Trust Company, and its successors in
interest and, if a successor trustee is appointed hereunder, such successor.
Trustee Fee: As to each Mortgage Loan and any Distribution Date, an
amount equal to one month's interest at the related Trustee Fee Rate on the
Stated Principal Balance of such Mortgage Loan as of the preceding Distribution
Date (or as of the Closing Date in the case of the first Distribution Date) or,
in the event of any payment of interest which accompanies a Principal Prepayment
in Full made by the Mortgagor, interest at the Trustee Fee Rate on the Stated
Principal Balance of such Mortgage Loan for the period covered by such payment
of interest.
Trustee Fee Rate: With respect to each Mortgage Loan, 0.0063% per
annum.
Trustee Float Period: With respect to any Distribution Date and the
related amounts in the Distribution Account, the period commencing on the
Business Day immediately preceding such Distribution Date and ending on such
Distribution Date.
U.S. Person: (i) A citizen or resident of the United States; (ii) a
corporation (or entity treated as a corporation for tax purposes) created or
organized in the United States or under the laws of the United States or of any
State thereof, including, for this purpose, the District of Columbia; (iii) a
partnership (or entity treated as a partnership for tax purposes) organized in
the United States or under the laws of the United States or of any state
thereof, including, for this purpose, the District of Columbia (unless provided
otherwise by future Treasury regulations); (iv) an estate whose income is
includible in gross income for United States income tax purposes regardless of
its source; or (v) 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 U.S. Persons have authority to control all substantial decisions of the
trust. Notwithstanding the last clause of the preceding sentence, to the extent
provided in Treasury regulations, certain trusts in existence on August 20,
1996, and treated as U.S. Persons prior to such date, may elect to continue to
be U.S. Persons.
Underwriters' Exemption: Any exemption listed in footnote 1 of, and
amended by, Prohibited Transaction Exemption 2002-41, 67 Fed. Reg. 54487 (2002),
or any successor exemption.
Underwriting Guidelines: The underwriting guidelines attached to the
applicable Purchase Agreement.
Unpaid Interest Amounts: As of any Distribution Date and any Class
of Certificates, the sum of (a) the portion of the Accrued Certificate Interest
Distribution Amount from prior Distribution Dates remaining unpaid immediately
prior to the current Distribution Date and (b) interest on such unpaid amount in
clause (a) at the applicable Pass-Through Rate (to the extent permitted by
applicable law).
Upper-Tier Carry Forward Amount: With respect to each Class of
Principal Certificates, as of any Distribution Date, the sum of (A) if on such
Distribution Date the Upper-Tier Interest Rate for the Class of Corresponding
Upper-Tier REMIC Regular Interest is based upon the Upper-Tier REMIC WAC Rate,
the excess, if any, of (i) the amount of interest such Class of Upper-Tier
Regular Interest would otherwise be entitled to receive on such Distribution
Date had such Upper-Tier REMIC Regular Interest not been subject to the
Upper-Tier REMIC WAC Rate, over (ii) the amount of interest payable on such
Class of Certificates on such Distribution Date taking into account the
Upper-Tier REMIC WAC Rate and (B) the Upper-Tier 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 applicable Upper-Tier
Interest Rate for such Class of Certificates for such Distribution Date, without
giving effect to the Upper-Tier REMIC WAC Rate.
Upper-Tier Interest Rate: As described in the Preliminary Statement.
Upper-Tier Regular Interest: As described in the Preliminary
Statement.
Upper-Tier REMIC: As described in the Preliminary Statement.
Upper-Tier REMIC WAC Rate: For any Distribution Date, the weighted
average of the Lower-Tier Interest Rates on the Lower-Tier Regular Interests
(other than the Class LT-IO Interest) as of the first day of the related
Interest Accrual Period, weighted on the basis of the Lower-Tier Principal
Amounts of such Lower-Tier Regular Interests as of the first day of the related
Interest Accrual Period.
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) 1% of all Voting Rights shall be allocated to the Class X
Certificates, if any (such Voting Rights to be allocated among the holders of
Certificates of each such Class in accordance with their respective Percentage
Interests), (b) 1% of all Voting Rights shall be allocated to the Class P
Certificates, if any, and (c) the remaining Voting Rights shall be allocated
among Holders of the remaining Classes of Certificates in proportion to the
Certificate Balances of their respective Certificates on such date.
WAC Cap: With respect to the Mortgage Loans as of any Distribution
Date, a per annum rate equal to (a) the weighted average of the Adjusted Net
Mortgage Interest Rates then in effect on the beginning of the related Due
Period on the Mortgage Loans, plus any Net Swap Receipts and less any Net Swap
Payments for such Distribution Date, in each case converted to a per annum rate
on the Mortgage Loans calculated on the basis of the actual number of days in
the related Interest Accrual Period and a 360-day year. In the case of the Class
B-4 Certificates, the WAC Cap will be converted to a rate calculated on the
basis of a 360-day year with 30 days in each Interest Accrual Period.
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, and the Trustee, on behalf of the Trust,
hereby accepts the Trust Fund.
(b) In connection with the transfer and assignment of each Mortgage
Loan, the Depositor has delivered or caused to be delivered to the Custodian,
with respect to the Mandalay Mortgage Loans and the Conduit Mortgage Loans, and
the Trustee, with respect to the Accredited Mortgage Loans, the Acoustic
Mortgage Loans and the First NLC Mortgage Loans, for the benefit of the
Certificateholders the following documents or instruments with respect to each
Mortgage Loan so assigned:
(i) the original Mortgage Note bearing all intervening endorsements
endorsed "Pay to the order of _____________, without recourse" and signed
in the name of the last endorsee. To the extent that there is no room on
the face of any Mortgage Note for an endorsement, the endorsement may be
contained on an allonge, if state law so allows and the Trustee is so
advised by the Depositor that state law so allows;
(ii) except with respect to the Mandalay Mortgage Loans and the
Conduit Mortgage Loans, the original of any guarantee executed in
connection with the Mortgage Note;
(iii) (A) with respect to the Accredited Mortgage Loans, the
Acoustic Mortgage Loans and the First NLC Mortgage Loans, the original
Mortgage with evidence of recording thereon. If in connection with any
Mortgage Loan, the applicable Original Loan Seller, cannot deliver or
cause to be delivered the original Mortgage with evidence of recording
thereon on or prior to the Closing Date because of a delay caused by the
public recording office where such Mortgage has been delivered for
recordation or because such Mortgage has been lost or because such public
recording office retains the original recorded Mortgage, the applicable
Original Loan Seller, (to the extent that it has not previously delivered
the same to the Purchaser or the Trustee) shall deliver or cause to be
delivered to the Trustee, a photocopy of such Mortgage, together with (i)
in the case of a delay caused by the public recording office, an officer's
certificate of (or certified by) the applicable Original Loan Seller (or
certified by the title company, escrow agent, or closing attorney) stating
that such Mortgage has been dispatched to the appropriate public recording
office for recordation and that the original recorded Mortgage or a copy
of such Mortgage certified by such public recording office to be a true
and complete copy of the original recorded Mortgage will be promptly
delivered to the Trustee upon receipt thereof by the applicable Original
Loan Seller; or (ii) in the case of a Mortgage 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, a copy of
such Mortgage certified by such public recording office to be a true and
complete copy of the original recorded Mortgage;
(B) with respect to the Mandalay Mortgage Loans and the
Conduit Mortgage Loans, the original Mortgage with evidence of
recording thereon. If in connection with any Mortgage Loan, the
applicable Original Loan Seller, cannot deliver or cause to be
delivered the original Mortgage with evidence of recording thereon
on or prior to the Closing Date because of a delay caused by the
public recording office where such Mortgage has been delivered for
recordation or because such Mortgage has been lost or because such
public recording office retains the original recorded Mortgage, the
applicable Original Loan Seller, (to the extent that it has not
previously delivered the same to the Purchaser or the Custodian)
shall deliver or cause to be delivered to the Custodian, a photocopy
of such Mortgage, together with (i) in the case of a delay caused by
the public recording office, an officer's certificate of (or
certified by) the applicable Original Loan Seller (or certified by
the title company, escrow agent, or closing attorney) stating that
such Mortgage has been dispatched to the appropriate public
recording office for recordation and that the original recorded
Mortgage or a copy of such Mortgage certified by such public
recording office to be a true and complete copy of the original
recorded Mortgage will be promptly delivered to the Custodian upon
receipt thereof by the applicable Original Loan Seller; or (ii) in
the case of a Mortgage 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, a copy of such
Mortgage certified by such public recording office to be a true and
complete copy of the original recorded Mortgage;
(iv) the originals of all assumption, modification, consolidation or
extension agreements, (if provided), with evidence of recording thereon or
a certified true copy of such agreement submitted for recording;
(v) except with respect to each MERS Designated Mortgage Loan, the
original Assignment of Mortgage for each Mortgage Loan endorsed in blank
and in recordable form;
(vi) (A) with respect to the Accredited Mortgage Loans, the Acoustic
Mortgage Loans and the First NLC Mortgage Loans, the originals of all
intervening Assignments of Mortgage (if any) evidencing a complete chain
of assignment from the applicable originator (or MERS with respect to each
MERS Designated Mortgage Loan) to the last endorsee with evidence of
recording thereon, or if any such intervening assignment has not been
returned from the applicable recording office or has been lost or if such
public recording office retains the original recorded Assignments of
Mortgage, the applicable Original Loan Seller (to the extent that it has
not previously delivered the same to the Purchaser or the Trustee) shall
deliver or cause to be delivered to the Trustee, a photocopy of such
intervening assignment, together with (A) in the case of a delay caused by
the public recording office, an officer's certificate of (or certified by)
the applicable Original Loan Seller (or certified by the title company,
escrow agent, or closing attorney) stating that such intervening
Assignment of Mortgage has been dispatched to the appropriate public
recording office for recordation and that such original recorded
intervening Assignment of Mortgage or a copy of such intervening
Assignment of Mortgage certified by the appropriate public recording
office to be a true and complete copy of the original recorded intervening
assignment of mortgage will be promptly delivered to the Trustee upon
receipt thereof by the applicable Original Loan Seller; or (B) in the case
of an intervening assignment where a public recording office retains the
original recorded intervening assignment or in the case where an
intervening assignment is lost after recordation in a public recording
office, a copy of such intervening assignment certified by such public
recording office to be a true and complete copy of the original recorded
intervening assignment;
(B) with respect to the Mandalay Mortgage Loans and the
Conduit Mortgage Loans, the originals of all intervening Assignments
of Mortgage (if any) evidencing a complete chain of assignment from
the applicable originator (or MERS with respect to each MERS
Designated Mortgage Loan) to the last endorsee with evidence of
recording thereon, or if any such intervening assignment has not
been returned from the applicable recording office or has been lost
or if such public recording office retains the original recorded
Assignments of Mortgage, the applicable Original Loan Seller (to the
extent that it has not previously delivered the same to the
Purchaser or the Trustee) shall deliver or cause to be delivered to
the Custodian, a photocopy of such intervening assignment, together
with (A) in the case of a delay caused by the public recording
office, an officer's certificate of (or certified by) the applicable
Original Loan Seller (or certified by the title company, escrow
agent, or closing attorney) stating that such intervening Assignment
of Mortgage has been dispatched to the appropriate public recording
office for recordation and that such original recorded intervening
Assignment of Mortgage or a copy of such intervening Assignment of
Mortgage certified by the appropriate public recording office to be
a true and complete copy of the original recorded intervening
assignment of mortgage will be promptly delivered to the Custodian
upon receipt thereof by the applicable Original Loan Seller; or (B)
in the case of an intervening assignment where a public recording
office retains the original recorded intervening assignment or in
the case where an intervening assignment is lost after recordation
in a public recording office, a copy of such intervening assignment
certified by such public recording office to be a true and complete
copy of the original recorded intervening assignment;
(vii) the original or duplicate lender's title policy and any riders
thereto or, any one of an original title binder, an original or copy of
the preliminary title report or an original or copy of the title
commitment, and if, copies then certified by the title company; and
(viii) a security agreement, chattel mortgage or equivalent document
executed in connection with the Mortgage (if provided).
The Depositor shall use reasonable efforts to assist the Custodian
and the Trustee, as applicable, and the applicable Servicer in enforcing the
obligations of the Purchaser under the Representations and Warranties Agreement,
and the obligations of Acoustic and First NLC under their respective Interim
Servicing Agreements.
Each Mortgage Loan for which a Mortgage Note is missing shall be
evidenced by a lost note affidavit as of the Closing Date. In the event one or
more lost note affidavits are provided to cover multiple missing Mortgage Notes
on the Closing Date, the Depositor shall use reasonable efforts to cause the
Purchaser to deliver to the Custodian or the Trustee, as applicable, the
applicable individual lost note affidavits within ten (10) Business Days of the
Closing Date. If the applicable Original Loan Seller fails to deliver the
required individual lost note affidavits within the specified period of time,
the Custodian or the Trustee, as applicable, shall notify the Purchaser to take
such remedial actions, including, without limitation, the repurchase by the
Purchaser of such Mortgage Loan within 60 days of the Closing Date with respect
to any Accredited Mortgage Loan, any Acoustic Mortgage Loan or First NLC
Mortgage Loan, or within 180 days of the Closing Date with respect to any
Mandalay Mortgage Loan or any Conduit Mortgage Loan.
The Depositor shall use reasonable efforts to cause the Purchaser to
deliver to the Custodian or the Trustee, as applicable, the applicable recorded
document promptly upon receipt from the respective recording office but in no
event later than 180 days from the Closing Date.
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 applicable Servicer shall take all reasonable actions as are necessary at
the expense of the Depositor 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.
The Depositor shall use reasonable efforts to cause the Purchaser to
forward to the Custodian or the Trustee, as applicable, additional documents
evidencing an assumption, modification, consolidation or extension of a Mortgage
Loan approved by the applicable Original Loan Seller in accordance with the
terms of the applicable Purchase Agreement. All such mortgage documents held by
the Custodian or the Trustee, as applicable, as to each Mortgage Loan shall
constitute the "Custodial File."
On or prior to the Closing Date, the Depositor shall use reasonable
efforts to cause the Purchaser to deliver to the Custodian or the Trustee, as
applicable, Assignments of Mortgages, in blank, for each applicable Mortgage
Loan (except with respect to each MERS Designated Mortgage Loan). The Depositor
shall use reasonable efforts to cause the Purchaser to cause the Assignments of
Mortgage with completed recording information to be provided to the related
Servicer in a reasonably acceptable manner. No later than thirty (30) Business
Days following the later of the Closing Date and the date of receipt by the
Depositor of the fully completed Assignments of Mortgages in recordable form,
the Depositor shall promptly submit or cause to be submitted for recording, at
the expense of the Purchaser, at no expense to the Trust Fund, the Custodian,
the Trustee or the Depositor in the appropriate public office for real property
records, each Assignment of Mortgage referred to in Section 2.01(b)(v).
Notwithstanding the foregoing, however, for administrative convenience and
facilitation of servicing and to reduce closing costs, the Assignments of
Mortgage shall not be required to be completed and submitted for recording with
respect to any Mortgage Loan (i) if the Trustee and each Rating Agency has
received an opinion of counsel, satisfactory in form and substance to the
Trustee and each Rating Agency, to the effect that the recordation of such
Assignments of Mortgage in any specific jurisdiction is not necessary to protect
the Trustee's interest in the related Mortgage Note or (ii) if such Mortgage
Loan is a MERS Designated Mortgage Loan. If the Assignment of Mortgage is to be
recorded, the Depositor shall use reasonable efforts to cause the Purchaser to
assign the Mortgage at the Purchaser's expense to "Deutsche Bank National Trust
Company, as trustee under the Pooling and Servicing Agreement dated as of March
1, 2005, GSAMP Trust 2005-HE2." In the event that any such assignment is lost or
returned unrecorded because of a defect therein with respect to any Mortgage
Loan, and such defect is not cured, the Trustee shall cause the Purchaser to
repurchase such Mortgage Loan pursuant to the Representations and Warranties
Agreement.
On or prior to the Closing Date, the Depositor shall deliver to the
Custodian or the Trustee, as applicable, and each Servicer a copy of the Data
Tape Information in electronic, machine readable medium in a form mutually
acceptable to the Depositor, each Servicer, the Custodian and the Trustee.
Within ten (10) Business Days of the Closing Date, the Depositor shall deliver a
copy of the complete Mortgage Loan Schedule to the Custodian, the Trustee and
each Servicer, and the Custodian and the Trustee shall promptly upon receipt of
the Mortgage Loan Schedule (or any other mortgage loan schedules received by the
Custodian or the Trustee from the Depositor) inform the Depositor of receipt
thereof.
In the event, with respect to any Mortgage Loan, that such original
or copy of any document submitted for recordation to the appropriate public
recording office is not so delivered to the Custodian or the Trustee, as
applicable, within 90 days following the applicable Original Purchase Date, and
in the event that the Purchaser does not cause such failure to be cured within
60 days of discovery of receipt of written notification of such failure from the
Depositor, the related Mortgage Loan shall, upon the request of the Depositor,
be repurchased by the Purchaser pursuant to the Representations and Warranties
Agreement, at the price and in the manner specified in Section 2.03. The
foregoing repurchase remedy shall not apply in the event that the Purchaser
cannot deliver such original or copy of any document submitted for recordation
to the appropriate public recording office within the specified period due to a
delay caused by the recording office in the applicable jurisdiction; provided,
that the Purchaser shall instead deliver a recording receipt of such recording
office or, if such recording receipt is not available, an officer's certificate
of an officer of the Purchaser confirming that such document has been accepted
for recording.
Notwithstanding anything to the contrary contained in this Section
2.01, in those instances where the public recording office retains or loses the
original Mortgage or assignment after it has been recorded, the obligations of
the Purchaser shall be deemed to have been satisfied upon delivery by the
Purchaser to the Custodian or the Trustee, as applicable, prior to the Closing
Date of a copy of such Mortgage or assignment, as the case may be, certified
(such certification to be an original thereof) by the public recording office to
be a true and complete copy of the recorded original thereof.
(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 "GSAMP Trust 2005-HE2" and
Deutsche Bank National Trust Company is hereby appointed as Trustee in
accordance with the provisions of this Agreement.
(d) The Trust shall have the capacity, power and authority, and the
Trustee on behalf of the Trust is hereby authorized, to accept the sale,
transfer, assignment, set over and conveyance by the Depositor to the Trust of
all the right, title and interest of the Depositor in and to the Trust Fund
(including, without limitation, the Mortgage Loans and the Interest Rate Swap
Agreement) pursuant to Section 2.01(a). The parties hereby acknowledge and agree
that the execution and delivery of the Interest Rate Swap Agreement by the
Trustee on behalf of the Trust were authorized and are hereby ratified and
confirmed.
Section 2.02 Acceptance by the Trustee of the Mortgage Loans. The
Custodian and the Trustee, as applicable, acknowledge receipt of the documents
identified in the Initial Certification in the form annexed hereto as Exhibit E,
and the Trustee declares that the Custodian, on the Trustee's behalf, holds and
will hold such documents and the other documents delivered to them pursuant to
Section 2.01, and that the Trustee 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 Custodian and the Trustee, as
applicable, acknowledge that they will maintain possession of the related
Mortgage Notes in the States of Texas and California, respectively, unless
otherwise permitted by the Rating Agencies.
Prior to and as a condition to the Closing, the Custodian and the
Trustee shall each deliver via facsimile (with original to follow the next
Business Day) to the Depositor and each Servicer an Initial Certification prior
to the Closing Date, or as the Depositor agrees to, on the Closing Date,
certifying receipt of a Mortgage Note and Assignment of Mortgage for each
Mortgage Loan with any exceptions thereon. Neither the Custodian nor the Trustee
shall be responsible to verify the validity, sufficiency or genuineness of any
document in any Custodial File.
On the Closing Date, the Custodian and the Trustee shall ascertain
that all documents required to be reviewed by them are in their possession, and
shall deliver to the Depositor and the applicable Servicer an Initial
Certification, in the form annexed hereto as Exhibit E, and shall deliver to the
Depositor and the applicable Servicer Document Certification and Exception
Report, in the form annexed hereto as Exhibit F, within 90 days after the
Closing Date to the effect that, as to each Mortgage Loan listed in the Mortgage
Loan Schedule (other than any Mortgage Loan paid in full or any Mortgage Loan
specifically identified in such certification as an exception and not covered by
such certification): (i) all documents required to be reviewed by it are in its
possession; (ii) such documents have been reviewed by it and appear regular on
their face and relate to such Mortgage Loan; (iii) based on its examination and
only as to the foregoing documents, the information set forth in items (1), (2)
and (13) of the Mortgage Loan Schedule and items (1), (2) and (13) of the Data
Tape Information respecting such Mortgage Loan is correct; and (iv) each
Mortgage Note has been endorsed as provided in Section 2.01 of this Agreement.
Neither the Custodian nor the Trustee shall be responsible to verify the
validity, sufficiency or genuineness of any document in any Custodial File.
The Custodian and the Trustee, as applicable, shall retain
possession and custody of each Custodial File in accordance with and subject to
the terms and conditions set forth herein. Each Servicer shall promptly deliver
to the Custodian or the Trustee, as applicable, upon the execution or receipt
thereof, the originals of such other documents or instruments constituting the
Custodial File as come into the possession of such Servicer from time to time.
The Depositor shall use reasonable efforts to cause the Purchaser to
deliver to the applicable Servicer copies of all trailing documents required to
be included in the Custodial File at the same time the original or certified
copies thereof are delivered to the Custodian or the Trustee, as applicable,
including but not limited to such documents as the title insurance policy and
any other Mortgage Loan documents upon return from the public recording office.
The Depositor shall use reasonable efforts to cause the Purchaser to deliver, at
the Purchaser's expense, to the related Servicer and in no event shall the
related Servicer be responsible for such expense.
Section 2.03 Representations, Warranties and Covenants of Each
Servicer and the Custodian. (a) Countrywide hereby makes the representations and
warranties set forth in Schedule II hereto to the Depositor, the Custodian and
the Trustee as of the Closing Date. JPMorgan, hereby makes the representations
and warranties set forth in Schedule III hereto to the Depositor and the Trustee
as of the Closing Date. The Custodian hereby makes the representations and
warranties set forth in Schedule IV hereto to the Depositor, Countrywide and the
Trustee as of the Closing Date.
(b) It is understood and agreed by the Servicers and the Custodian
that the representations and warranties set forth in this Section 2.03 shall
survive the transfer of the Mortgage Loans by the Depositor to the Trustee, and
shall inure to the benefit of the Depositor and the Trustee notwithstanding any
restrictive or qualified endorsement on any Mortgage Note or Assignment of
Mortgage or the examination or failure to examine any Mortgage File. Upon
discovery by any of the Depositor, Trustee, or any Servicer of a breach of any
of the foregoing representations and warranties, the party discovering such
breach shall give prompt written notice to the other; provided that a Servicer
need not give notice to the other Servicer.
(c) [Reserved]
(d) [Reserved]
(e) In connection with any repurchase or substitution of a Mortgage
Loan pursuant to this Section 2.03, Section 2.07 or Section 2.08, the applicable
Servicer shall, based on information provided by the Purchaser, 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 Substitute
Mortgage Loan or Loans and the applicable Servicer shall deliver the amended
Mortgage Loan Schedule to the Custodian or the Trustee, as applicable. Upon any
such repurchase or any substitution and the deposit to the Collection Account of
any Substitution Adjustment Amount, the Custodian or the Trustee, as applicable,
shall release the Mortgage File held for the benefit of the Certificateholders
relating to such Deleted Mortgage Loan to the Purchaser, and shall execute and
deliver at the direction of the Purchaser such instruments of transfer or
assignment prepared by the Purchaser in each case without recourse, as shall be
necessary to vest title in the Purchaser or its designee, the Trustee's interest
in any Deleted Mortgage Loan substituted for pursuant to this Section 2.03.
(f) [Reserved]
(g) For any month in which the Purchaser substitutes one or more
Substitute Mortgage Loans for one or more Deleted Mortgage Loans, the related
Servicer will determine the amount (if any) by which the aggregate unpaid
principal balance of all such Substitute Mortgage Loans as of the date of
substitution is less than the aggregate Stated Principal Balance of all such
Deleted Mortgage Loans (after application of the scheduled principal portion of
the Scheduled Payments due in the Due Period of substitution). The Depositor
shall use reasonable efforts to cause the Purchaser to remit to the applicable
Servicer for deposit into the related Collection Account on or before the next
Remittance Date any Substitution Adjustment Amount.
(h) In the event that a Mortgage Loan shall have been repurchased
pursuant to the Representations and Warranties Agreement, the Repurchase Price
thereof shall be deposited in the related Collection Account by the applicable
Servicer pursuant to Section 3.10 on or before the next Remittance Date and upon
such deposit of the Repurchase Price, and receipt of a Request for Release in
the form of Exhibit J hereto, the Custodian or the Trustee, as applicable, shall
release the related Custodial File held for the benefit of the
Certificateholders to such Person as directed by the applicable Servicer, and
the Custodian or the Trustee, as applicable, shall execute and deliver at such
Person's direction such instruments of transfer or assignment prepared by such
Person, in each case without recourse, 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 and satisfaction of any related
indemnification obligations shall constitute the sole remedy against such
Persons respecting such breach available to Certificateholders, the Depositor,
the applicable Servicer, the Custodian or the Trustee on their behalf.
The representations and warranties made pursuant to this Section
2.03 shall survive delivery of the respective Custodial Files to the Custodian
or the Trustee, as the case may be, for the benefit of the Certificateholders.
Section 2.04 [Reserved.]
Section 2.05 Execution and Delivery of Certificates. The Trustee
acknowledges the transfer and assignment to it of the Trust Fund and,
concurrently with such transfer and assignment, has executed 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 and exercise the rights referred to above
for the benefit of all present and future Holders of the Certificates.
Section 2.06 REMIC Matters. The Preliminary Statement sets forth the
designations for federal income tax purposes of all interests created hereby.
The "Start-up Day" for purposes of the REMIC Provisions shall be the Closing
Date. The "latest possible maturity date" is the Distribution Date in March
2035, which is the Distribution Date in the month following the month in which
the latest maturity date of any Mortgage Loan occurs. Amounts distributable to
the Class X Certificates (prior to any reduction for any Basis Risk Payment),
exclusive of any amounts received from the Swap Provider, shall be deemed paid
from the Upper-Tier REMIC in respect of the Class X Interest to the Holders of
the Class X Certificates prior to distribution of any Basis Risk Payments to the
Principal Certificates.
For federal income tax purposes, any amount distributed on the
Principal Certificates on any Distribution Date in excess of the amount
distributable on their Corresponding Class of Upper-Tier Regular Interest on
such Distribution Date shall be treated as having been paid from the Excess
Reserve Fund Account or the Supplemental Interest Trust, as applicable, and any
amount distributable on such Corresponding Class of Upper-Tier Regular Interest
on such Distribution Date in excess of the amount distributable on the
Corresponding Class of Principal Certificates on such Distribution Date shall be
treated as having been paid to the Supplemental Interest Trust, all pursuant to
and as further provided in Section 8.15.
Section 2.07 Representations and Warranties of the Depositor. The
Depositor hereby represents, warrants and covenants to the Trustee and each
Servicer that as of the date of this Agreement or as of such date specifically
provided herein:
(a) The Depositor is a corporation duly organized, validly existing
and in good standing under the laws of the State of Delaware;
(b) The Depositor has the corporate power and authority to convey
the Mortgage Loans and to execute, deliver and perform, and to enter into and
consummate the transactions contemplated by, this Agreement;
(c) This Agreement has been duly and validly authorized, executed
and delivered by the Depositor, all requisite corporate action having been
taken, and, assuming the due authorization, execution and delivery hereof by the
other parties hereto, constitutes or will constitute the legal, valid and
binding agreement of the Depositor, enforceable against the Depositor in
accordance with its terms, except as such enforcement may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws
relating to or affecting the rights of creditors generally, and by general
equity principles (regardless of whether such enforcement is considered in a
proceeding in equity or at law);
(d) No consent, approval, authorization or order of or registration
or filing with, or notice to, any governmental authority or court is required
for the execution, delivery and performance of or compliance by the Depositor
with this Agreement or the consummation by the Depositor of any of the
transactions contemplated hereby, except as have been made on or prior to the
Closing Date;
(e) None of the execution and delivery of this Agreement, the
consummation of the transactions contemplated hereby or thereby, or the
fulfillment of or compliance with the terms and conditions of this Agreement,
(i) conflicts or will conflict with or results or will result in a breach of, or
constitutes or will constitute a default or results or will result in an
acceleration under (A) the charter or bylaws of the Depositor, or (B) of any
term, condition or provision of any material indenture, deed of trust, contract
or other agreement or instrument to which the Depositor or any of its
subsidiaries is a party or by which it or any of its subsidiaries is bound; (ii)
results or will result in a violation of any law, rule, regulation, order,
judgment or decree applicable to the Depositor of any court or governmental
authority having jurisdiction over the Depositor or its subsidiaries; or (iii)
results in the creation or imposition of any lien, charge or encumbrance which
would have a material adverse effect upon the Mortgage Loans or any documents or
instruments evidencing or securing the Mortgage Loans;
(f) There are no actions, suits or proceedings before or against or
investigations of, the Depositor pending, or to the knowledge of the Depositor,
threatened, before any court, administrative agency or other tribunal, and no
notice of any such action, which, in the Depositor's reasonable judgment, might
materially and adversely affect the performance by the Depositor of its
obligations under this Agreement, or the validity or enforceability of this
Agreement;
(g) The Depositor is not in default with respect to any order or
decree of any court or any order, regulation or demand of any federal, state,
municipal or governmental agency that may materially and adversely affect its
performance hereunder; and
(h) Immediately prior to the transfer and assignment by the
Depositor to the Trustee on the Closing Date, the Depositor had good title to,
and was the sole owner of each Mortgage Loan, free of any interest of any other
Person, and the Depositor has transferred all right, title and interest in each
Mortgage Loan to the Trustee. The transfer of each Mortgage Note and each
Mortgage as and in the manner contemplated by this Agreement is sufficient
either (i) fully to transfer to the Trustee, for the benefit of the
Certificateholders, all right, title, and interest of the Depositor thereto as
note holder and mortgagee or (ii) to grant to the Trustee, for the benefit of
the Certificateholders, the security interest referred to in Section 10.04, and
It is understood and agreed that the representations, warranties and
covenants set forth in this Section 2.07 shall survive delivery of the
respective Custodial Files to the Custodian or the Trustee, as the case may be,
and shall inure to the benefit of the Trustee.
Section 2.08 Enforcement of Purchaser Obligations. Upon discovery by
any of the parties hereto of a breach of a representation or warranty made by
the Purchaser pursuant to the Representations and Warranties Agreement, the
party discovering such breach shall give prompt written notice thereof to the
other parties to this Agreement and the Purchaser. The Trustee shall take such
action with respect to such breach under the Representations and Warranties
Agreement, as applicable, as may be necessary or appropriate to enforce the
rights of the Trust with respect thereto.
ARTICLE III
ADMINISTRATION AND SERVICING
OF MORTGAGE LOANS
Section 3.01 Servicers to Service Mortgage Loans. (a) For and on
behalf of the Certificateholders, each Servicer shall service and administer the
Mortgage Loans serviced by it in accordance with the terms of this Agreement and
the respective Mortgage Loans (provided, however that, prior to the Servicing
Transfer Date with respect to any Acoustic Mortgage Loans or First NLC Mortgage
Loans subject to an Interim Servicing Agreement, Acoustic or First NLC,
respectively, will service such Acoustic Mortgage Loans or First NLC Mortgage
Loans pursuant to the applicable Interim Servicing Agreement. From and after the
Servicing Transfer Date with respect to the Acoustic Mortgage Loans or such
First Mortgage Loans, Countrywide shall service such Mortgage Loans pursuant to
this Agreement), to the extent consistent with such terms, in compliance with
all applicable federal, state and local laws, and in the same manner in which it
services and administers similar mortgage loans for its own portfolio, giving
due consideration to customary and usual standards of practice of mortgage
lenders and loan servicers administering similar mortgage loans but without
regard to:
(i) any relationship that such Servicer, any Subservicer or any
Affiliate of such Servicer or any Subservicer may have with the related
Mortgagor;
(ii) the ownership or non-ownership of any Certificate by such
Servicer or any Affiliate of such Servicer;
(iii) such Servicer's obligation to make P&I Advances or Servicing
Advances; or
(iv) such Servicer's or any Subservicer's right to receive
compensation for its services hereunder or with respect to any particular
transaction.
To the extent consistent with the foregoing, each Servicer shall
seek to maximize the timely and complete recovery of principal and interest on
the related Mortgage Notes. Subject only to the above-described servicing
standards and the terms of this Agreement and of the respective Mortgage Loans,
each Servicer shall have full power and authority, acting alone or through
Subservicers as provided in Section 3.02, to do or cause to be done any and all
things in connection with such servicing and administration which it may deem
necessary or desirable. Without limiting the generality of the foregoing, the
related Servicer in its own name or in the name of a Subservicer is hereby
authorized and empowered by the Trustee when each Servicer believes it
appropriate in its best judgment in accordance with Accepted Servicing
Practices, to execute and deliver any and all instruments of satisfaction or
cancellation, or of partial or full release or discharge, and all other
comparable instruments, with respect to the related Mortgage Loans and the
Mortgaged Properties and to institute foreclosure proceedings or obtain a
deed-in-lieu of foreclosure so as to convert the ownership of such properties,
and to hold or cause to be held title to such properties, on behalf of the
Trustee and in the name of the Trust. Each Servicer shall service and administer
the related Mortgage Loans in accordance with applicable state and federal law
and shall provide to the Mortgagors any reports required to be provided to them
thereby. Each Servicer shall also comply in the performance of this Agreement
with all reasonable rules and requirements of each insurer under any standard
hazard insurance policy. Subject to Section 3.16, the Custodian and the Trustee,
as applicable, shall execute, at the written request of the applicable Servicer,
and furnish to the applicable Servicer and any Subservicer such documents as are
necessary or appropriate to enable the applicable Servicer or any Subservicer to
carry out their servicing and administrative duties hereunder, and the Custodian
and the Trustee hereby grant to each Servicer, and this Agreement shall
constitute, a power of attorney to carry out such duties including a power of
attorney to take title to Mortgaged Properties after foreclosure on behalf of
the Trustee and in the name of the Trust. The Trustee shall execute any power of
attorney furnished to it by the related Servicer in favor of such Servicer for
the purposes described herein to the extent necessary or desirable to enable
such Servicer to perform its duties hereunder. The Trustee shall not be liable
for the actions of any Servicer or any Subservicers under such powers of
attorney.
(b) Subject to Section 3.09(b), in accordance with the standards of
the preceding paragraph, each Servicer shall advance or cause to be advanced
funds as necessary for the purpose of effecting the timely payment of taxes and
assessments on the Mortgaged Properties, which advances shall be Servicing
Advances reimbursable in the first instance from related collections from the
Mortgagors pursuant to Section 3.09(b), and further as provided in Section 3.11.
Any cost incurred by each Servicer or by Subservicers in effecting the timely
payment of taxes and assessments on a Mortgaged Property shall not be added to
the unpaid principal balance of the related Mortgage Loan, notwithstanding that
the terms of such Mortgage Loan so permit.
(c) Notwithstanding anything in this Agreement to the contrary, no
Servicer may make any future advances with respect to a Mortgage Loan (except as
provided in Section 4.01) and no Servicer shall (i) permit any modification with
respect to any Mortgage Loan that would change the Mortgage Interest Rate,
reduce or increase the principal balance (except for reductions resulting from
actual payments of principal) or change the final maturity date on such Mortgage
Loan (except for (A) a reduction of interest payments resulting from the
application of the Servicemembers Civil Relief Act or any similar state statutes
or (B) as provided in Section 3.07, if the Mortgagor is in default with respect
to the Mortgage Loan or such default is, in the judgment of the applicable
Servicer, reasonably foreseeable) or (ii) permit any modification, waiver or
amendment of any term of any Mortgage Loan that would both (A) effect an
exchange or reissuance of such Mortgage Loan under Section 1001 of the Code (or
final, temporary or proposed Treasury regulations promulgated thereunder) and
(B) cause any Trust REMIC to fail to qualify as a REMIC under the Code or the
imposition of any tax on "prohibited transactions" or "contributions after the
start-up day" under the REMIC Provisions, or (iii) except as provided in Section
3.07(a), waive any Prepayment Premiums.
(d) Each Servicer may delegate its responsibilities under this
Agreement; provided, however, that no such delegation shall release such
Servicer from the responsibilities or liabilities arising under this Agreement.
Section 3.02 Subservicing Agreements between a Servicer and
Subservicers. (a) Each Servicer may enter into subservicing agreements with
subservicers (each, a "Subservicer"), for the servicing and administration of
the related Mortgage Loans ("Subservicing Agreements").
(b) Each Subservicer shall be (i) authorized to transact business in
the state or states in which the related Mortgaged Properties it is to service
are situated, if and to the extent required by applicable law to enable the
Subservicer to perform its obligations hereunder and under the Subservicing
Agreement, (ii) an institution approved as a mortgage loan originator by the
Federal Housing Administration or an institution that has deposit accounts
insured by the FDIC and (iii) a Xxxxxxx Mac or Xxxxxx Mae approved mortgage
servicer. Each Subservicing Agreement must impose on the Subservicer
requirements conforming to the provisions set forth in Section 3.08 and provide
for servicing of the Mortgage Loans consistent with the terms of this Agreement.
Each Servicer will examine each Subservicing Agreement and will be familiar with
the terms thereof. The terms of any Subservicing Agreement will not be
inconsistent with any of the provisions of this Agreement. Each Servicer and the
respective Subservicers may enter into and make amendments to the Subservicing
Agreements or enter into different forms of Subservicing Agreements; provided,
however, that any such amendments or different forms shall be consistent with
and not violate the provisions of this Agreement, and that no such amendment or
different form shall be made or entered into which could be reasonably expected
to be materially adverse to the interests of the Trustee, without the consent of
the Trustee. Any variation without the consent of the Trustee from the
provisions set forth in Section 3.08 relating to insurance or priority
requirements of Subservicing Accounts, or credits and charges to the
Subservicing Accounts or the timing and amount of remittances by the
Subservicers to such Servicer, are conclusively deemed to be inconsistent with
this Agreement and therefore prohibited. Each Servicer shall deliver to the
Trustee and the Depositor copies of all Subservicing Agreements, and any
amendments or modifications thereof, promptly upon such Servicer's execution and
delivery of such instruments.
(c) As part of its servicing activities hereunder, each Servicer
(except as otherwise provided in the last sentence of this paragraph), for the
benefit of the Trustee, shall enforce the obligations of each Subservicer under
the related Subservicing Agreement to which such Servicer is a party, including,
without limitation, any obligation to make advances in respect of delinquent
payments as required by a Subservicing Agreement. Such enforcement, including,
without limitation, the legal prosecution of claims, termination of Subservicing
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 such Servicer, in its good
faith business judgment, would require were it the owner of the related Mortgage
Loans. Each Servicer shall pay the costs of such enforcement at its own expense,
and shall be reimbursed therefor only (i) from a general recovery resulting from
such enforcement, to the extent, if any, that such recovery exceeds all amounts
due in respect of the related Mortgage Loans or (ii) from a specific recovery of
costs, expenses or attorneys' fees against the party against whom such
enforcement is directed.
Section 3.03 Successor Subservicers. Each Servicer shall be entitled
to terminate any Subservicing Agreement to which such Servicer is a party and
the rights and obligations of any Subservicer pursuant to any Subservicing
Agreement in accordance with the terms and conditions of such Subservicing
Agreement. In the event of termination of any Subservicer, all servicing
obligations of such Subservicer shall be assumed simultaneously by the Servicer
who is party to the related Subservicing Agreement without any act or deed on
the part of such Subservicer or such Servicer, and such Servicer either shall
service directly the related Mortgage Loans or shall enter into a Subservicing
Agreement with a successor Subservicer which qualifies under Section 3.02.
Any Subservicing Agreement shall include the provision that such
agreement may be immediately terminated by the Depositor or the Trustee without
fee, in accordance with the terms of this Agreement, in the event that the
applicable Servicer which is a party to the related Subservicing Agreement
shall, for any reason, no longer be a Servicer (including termination due to an
Event of Default).
Section 3.04 Liability of the Servicers. Notwithstanding any
Subservicing Agreement, any of the provisions of this Agreement relating to
agreements or arrangements between a Servicer and a Subservicer or reference to
actions taken through a Subservicer or otherwise, such Servicer shall remain
obligated and primarily liable to the Trustee for the servicing and
administering of the Mortgage Loans in accordance with the provisions of Section
3.01 without diminution of such obligation or liability by virtue of such
Subservicing Agreements or arrangements or by virtue of indemnification from the
Subservicer and to the same extent and under the same terms and conditions as if
such Servicer alone were servicing and administering such Mortgage Loans. Each
Servicer shall be entitled to enter into any agreement with a Subservicer for
indemnification of such Servicer by such Subservicer and nothing contained in
this Agreement shall be deemed to limit or modify such indemnification.
Section 3.05 No Contractual Relationship between Subservicers and
the Trustee. Any Subservicing Agreement that may be entered into and any
transactions or services relating to the Mortgage Loans involving a Subservicer
in its capacity as such shall be deemed to be between the Subservicer and the
related Servicer alone, and the Trustee (or any successor to such Servicer)
shall not be deemed a party thereto and shall have no claims, rights,
obligations, duties or liabilities with respect to the Subservicer except as set
forth in Section 3.06. Each Servicer shall be solely liable for all fees owed by
it to any Subservicer, irrespective of whether such Servicer's compensation
pursuant to this Agreement is sufficient to pay such fees.
Section 3.06 Assumption or Termination of Subservicing Agreements by
Trustee. In the event any Servicer at any time shall for any reason no longer be
a Servicer (including by reason of the occurrence of an Event of Default), the
Trustee, or its designee, or the successor Servicer if the successor Servicer is
not the Trustee, shall thereupon assume all of the rights and obligations of
such Servicer under each Subservicing Agreement that such Servicer may have
entered into, with copies thereof provided to the Trustee prior to the Trustee
assuming such rights and obligations, unless the Trustee elects to terminate any
Subservicing Agreement in accordance with its terms as provided in Section 3.03.
Upon such assumption, the Trustee, its designee or the successor
servicer shall be deemed, subject to Section 3.03, to have assumed all of such
Servicer's interest therein and to have replaced such Servicer as a party to
each Subservicing Agreement to which the predecessor Servicer was a party to the
same extent as if each Subservicing Agreement had been assigned to the assuming
party, except that (i) such Servicer shall not thereby be relieved of any
liability or obligations under any Subservicing Agreement that arose before it
ceased to be a Servicer and (ii) none of the Depositor, the Trustee, their
designees or any successor to such Servicer shall be deemed to have assumed any
liability or obligation of such Servicer that arose before it ceased to be a
Servicer.
Such Servicer at its expense shall, upon request of the Trustee,
deliver to the assuming party all documents and records relating to each
Subservicing Agreement to which it is a party and the Mortgage Loans then being
serviced by it and an accounting of amounts collected and held by or on behalf
of it, and otherwise use its best efforts to effect the orderly and efficient
transfer of the Subservicing Agreements to the assuming party.
Section 3.07 Collection of Certain Mortgage Loan Payments. (a) Each
Servicer shall make reasonable efforts to collect all payments called for under
the terms and provisions of the Mortgage Loans and shall, to the extent such
procedures shall be consistent with this Agreement and the terms and provisions
of any applicable Insurance Policies, follow such collection procedures as it
would follow with respect to mortgage loans comparable to the Mortgage Loans and
held for its own account. Consistent with the foregoing and Accepted Servicing
Practices, each Servicer may (i) waive any late payment charge or, if
applicable, any penalty interest, or (ii) extend the due dates for the Scheduled
Payments due on a Mortgage Note for a period of not greater than 180 days;
provided, that any extension pursuant to clause (ii) above shall not affect the
amortization schedule of any Mortgage Loan for purposes of any computation
hereunder, except as provided below. In the event of any such arrangement
pursuant to clause (ii) above, each Servicer shall make timely advances on such
Mortgage Loan during such extension pursuant to Section 4.01 and in accordance
with the amortization schedule of such Mortgage Loan without modification
thereof by reason of such arrangements, subject to Section 4.01(d) pursuant to
which each Servicer shall not be required to make any such advances that are
Nonrecoverable P&I Advances. Notwithstanding the foregoing, in the event that
any Mortgage Loan is in default or in the judgment of the applicable Servicer,
such default is reasonably foreseeable, the applicable Servicer, consistent with
the standards set forth in Section 3.01, may also waive, modify or vary any term
of such Mortgage Loan (including modifications that would change the Mortgage
Interest Rate, forgive the payment of principal or interest, extend the final
maturity date of such Mortgage Loan or waive, in whole or in part, a Prepayment
Premium), accept payment from the related Mortgagor of an amount less than the
Stated Principal Balance in final satisfaction of such Mortgage Loan, or consent
to the postponement of strict compliance with any such term or otherwise grant
indulgence to any Mortgagor (any and all such waivers, modifications, variances,
forgiveness of principal or interest, postponements, or indulgences collectively
referred to herein as "Forbearance"); provided, however, that a Servicer's
approval of a modification of a Due Date shall not be considered a modification
for purposes of this sentence; provided, further, that the final maturity date
of any Mortgage Loan may not be extended beyond the Final Scheduled Distribution
Date for the Offered Certificates. The applicable Servicer's analysis supporting
any Forbearance and the conclusion that any Forbearance meets the standards of
Section 3.01 shall be reflected in writing in the applicable Servicing File or
on the applicable Servicer's servicing records. In addition, notwithstanding the
foregoing, each Servicer may also waive (or permit a Subservicer to waive), in
whole or in part, a Prepayment Premium if such waiver would, in the applicable
Servicer's judgment, maximize recoveries on the related Mortgage Loan or if such
Prepayment Premium is (i) not permitted to be collected by applicable law, or
the collection thereof would be considered "predatory" pursuant to written
guidance published by any applicable federal, state or local regulatory
authority having jurisdiction over such matters, or (ii) the enforceability
thereof is limited (1) by bankruptcy, insolvency, moratorium, receivership or
other similar laws relating to creditor's rights or (2) due to acceleration in
connection with a foreclosure or other involuntary payment. If a Prepayment
Premium is waived other than as permitted in this Section 3.07(a), then the
applicable Servicer is required to pay the amount of such waived Prepayment
Premium, for the benefit of the Holders of the Class P Certificates, by
depositing such amount into the related Collection Account together with and at
the time that the amount prepaid on the related Mortgage Loan is required to be
deposited into the related Collection Account; provided, however, that the
applicable Servicer shall not have an obligation to pay the amount of any
uncollected Prepayment Premium if the failure to collect such amount is the
direct result of inaccurate or incomplete information on the Mortgage Loan
Schedule in effect at such time.
(b) Each Servicer shall give notice to the Trustee, each Rating
Agency and the Depositor of any proposed change of the location of the
Collection Account within a reasonable period of time prior to any change
thereof.
Section 3.08 Subservicing Accounts. In those cases where a
Subservicer is servicing a Mortgage Loan pursuant to a Subservicing Agreement,
the Subservicer will be required to establish and maintain one or more accounts
(collectively, the "Subservicing Account"). The Subservicing Account shall be an
Eligible Account and shall otherwise be acceptable to the related Servicer. The
Subservicer shall deposit in the clearing account (which account must be an
Eligible Account) in which it customarily deposits payments and collections on
mortgage loans in connection with its mortgage loan servicing activities on a
daily basis, and in no event more than one Business Day after the Subservicer's
receipt thereof, all proceeds of Mortgage Loans received by the Subservicer less
its servicing compensation to the extent permitted by the Subservicing
Agreement, and shall thereafter deposit such amounts in the Subservicing
Account, in no event more than two Business Days after the deposit of such funds
into the clearing account. The Subservicer shall thereafter deposit such
proceeds in the Collection Account of the related Servicer or remit such
proceeds to the related Servicer for deposit in the Collection Account of the
related Servicer not later than two Business Days after the deposit of such
amounts in the Subservicing Account. For purposes of this Agreement, such
Servicer shall be deemed to have received payments on the Mortgage Loans when
the Subservicer receives such payments.
Section 3.09 Collection of Taxes, Assessments and Similar Items;
Escrow Accounts. (a) Each Servicer shall ensure that each of the Mortgage Loans
serviced by such Servicer shall be covered by a paid-in-full, life-of-the-loan
tax service contract in effect with respect to each First Lien Mortgage Loan
(each, a "Tax Service Contract") serviced by such Servicer. Each Tax Service
Contract shall be assigned to the Trustee, or its designee, at the applicable
Servicer's expense in the event that a Servicer is terminated as Servicer of the
related Mortgage Loan.
(b) To the extent that the services described in this paragraph (b)
are not otherwise provided pursuant to the Tax Service Contracts described in
paragraph (a) hereof, the applicable Servicer undertakes to perform such
functions with respect to the Mortgage Loans serviced by such Servicer. To the
extent the related Mortgage Loan provides for Escrow Payments, the applicable
Servicer shall establish and maintain, or cause to be established and
maintained, one or more accounts (the "Escrow Accounts"), which shall be
Eligible Accounts. Each Servicer shall deposit in the clearing account (which
account must be an Eligible Account) in which it customarily deposits payments
and collections on mortgage loans in connection with its mortgage loan servicing
activities on a daily basis, and in no event more than one Business Day after
such Servicer's receipt thereof, all collections from the Mortgagors (or related
advances from Subservicers) for the payment of taxes, assessments, hazard
insurance premiums and comparable items for the account of the Mortgagors
("Escrow Payments") collected on account of the Mortgage Loans and shall
thereafter deposit such Escrow Payments in the Escrow Accounts, in no event more
than two Business Days after the deposit of such funds in the clearing account,
for the purpose of effecting the payment of any such items as required under the
terms of this Agreement. Withdrawals of amounts from an Escrow Account may be
made only to (i) effect payment of taxes, assessments, fire and hazard insurance
premiums, condominium charges and comparable items; (ii) reimburse the
applicable Servicer (or a Subservicer to the extent provided in the related
Subservicing Agreement) out of related collections for any advances made
pursuant to Section 3.01 (with respect to taxes and assessments) and Section
3.13 (with respect to hazard insurance); (iii) refund to Mortgagors any sums as
may be determined to be overages; (iv) apply to the restoration or repair of the
Mortgaged Property in accordance with the Section 3.13; (v) transfer to the
Collection Account and application to reduce the principal balance of the
Mortgage Loan in accordance with the terms of the related Mortgage and Mortgage
Note; (vi) pay interest to the applicable Servicer and, if required and as
described below, to Mortgagors on balances in the Escrow Account; (vii) clear
and terminate the Escrow Account at the termination of the applicable Servicer's
obligations and responsibilities in respect of the related Mortgage Loans under
this Agreement; or (viii) recover amounts deposited in error or for which
amounts previously deposited are returned due to a "not sufficient funds" or
other denial of payment by the related Mortgagor's banking institution. As part
of its servicing duties, each Servicer or Subservicers shall pay to the
Mortgagors interest on funds in Escrow Accounts, to the extent required by law
and, to the extent that interest earned on funds in the Escrow Accounts is
insufficient, to pay such interest from its or their own funds, without any
reimbursement therefor. To the extent that a Mortgage does not provide for
Escrow Payments, the applicable Servicer shall use commercially reasonable
efforts consistent with Accepted Servicing Practices to determine whether any
such payments are made by the Mortgagor in a manner and at a time that avoids
the loss of the Mortgaged Property due to a tax sale or the foreclosure as a
result of a tax lien. Each Servicer assumes full responsibility for the payment
of all such bills within such time and shall effect payments of all such bills
irrespective of the Mortgagor's faithful performance in the payment of same or
the making of the Escrow Payments and shall make advances from its own funds to
effect such payments; provided, however, that such advances are deemed to be
Servicing Advances.
Section 3.10 Collection Accounts. (a) On behalf of the Trustee, each
Servicer shall establish and maintain, or cause to be established and
maintained, one or more segregated Eligible Accounts (each such account or
accounts, a "Collection Account"), held in trust for the benefit of the Trustee.
Funds in the Collection Account shall not be commingled with any other funds of
the Servicers. On behalf of the Trustee, each Servicer shall deposit or cause to
be deposited in the clearing account (which account must be an Eligible Account)
in which it customarily deposits payments and collections on mortgage loans in
connection with its mortgage loan servicing activities on a daily basis, and in
no event more than one Business Day after such Servicer's receipt thereof, and
shall thereafter deposit in the related Collection Account, in no event more
than two Business Days after the deposit of such funds into the clearing
account, as and when received or as otherwise required hereunder, the following
payments and collections received or made by it subsequent to the Cut-off Date
(other than in respect of principal or interest on the related Mortgage Loans
due on or before the Cut-off Date), or payments (other than Principal
Prepayments) received by it on or prior to the Cut-off Date but allocable to a
Due Period subsequent thereto:
(i) all payments on account of principal, including Principal
Prepayments, on the Mortgage Loans;
(ii) all payments on account of interest (net of the related
Servicing Fee) on each Mortgage Loan;
(iii) all Insurance Proceeds and Condemnation Proceeds (to the
extent such Insurance Proceeds and Condemnation Proceeds are not to be
applied to the restoration of the related Mortgaged Property or released
to the related Mortgagor in accordance with the express requirements of
law or in accordance with prudent and customary servicing practices) and
all Liquidation Proceeds;
(iv) any amounts required to be deposited pursuant to Section 3.12
in connection with any losses realized on Permitted Investments with
respect to funds held in the related Collection Account;
(v) any amounts required to be deposited by such Servicer pursuant
to the second paragraph of Section 3.13(a) in respect of any blanket
policy deductibles;
(vi) all proceeds of any Mortgage Loan repurchased or purchased in
accordance with this Agreement; and
(vii) all Prepayment Premiums collected by such Servicer.
The foregoing requirements for deposit in the Collection Accounts
shall be exclusive, it being understood and agreed that, without limiting the
generality of the foregoing, payments in the nature of late payment charges, NSF
fees, reconveyance fees, assumption fees and other similar fees and charges need
not be deposited by each Servicer in the related Collection Account and shall,
upon collection, belong to the applicable Servicer as additional compensation
for its servicing activities. In the event a Servicer shall deposit in the
related Collection Account any amount not required to be deposited therein, it
may at any time withdraw such amount from its Collection Account, any provision
herein to the contrary notwithstanding.
(b) Funds in the Collection Accounts may be invested in Permitted
Investments in accordance with the provisions set forth in Section 3.12. Each
Servicer shall give notice to the Trustee and the Depositor of the location of
the related Collection Account maintained by it when established and prior to
any change thereof.
Section 3.11 Withdrawals from the Collection Accounts. (a) Each
Servicer shall, from time to time, make withdrawals from the related Collection
Account for any of the following purposes or as described in Section 4.01:
(i) on or prior to the Remittance Date, to remit to (x) the
Custodian the Custodian Fee with respect to such Distribution Date, and
(y) the Trustee (A) the Trustee Fee with respect to such Distribution Date
and (B) all Available Funds in respect of the related Distribution Date
together with all amounts representing Prepayment Premiums from the
Mortgage Loans received during the related Prepayment Period;
(ii) to reimburse such Servicer for P&I Advances, but only to the
extent of amounts received which represent Late Collections (net of the
related Servicing Fees) of Scheduled Payments on Mortgage Loans with
respect to which such P&I Advances were made in accordance with the
provisions of Section 4.01;
(iii) to pay such Servicer or any Subservicer (A) any unpaid
Servicing Fees or (B) any unreimbursed Servicing Advances with respect to
each Mortgage Loan serviced by such Servicer, but only to the extent of
any Late Collections, Liquidation Proceeds, Condemnation Proceeds,
Insurance Proceeds or other amounts as may be collected by such Servicer
from a Mortgagor, or otherwise received with respect to such Mortgage Loan
(or the related REO Property);
(iv) to pay to such Servicer as servicing compensation (in addition
to the Servicing Fee) on the Remittance Date any interest or investment
income earned on funds deposited in its Collection Account;
(v) to pay the Purchaser or the Depositor, as applicable, with
respect to each Mortgage Loan that has previously been repurchased or
replaced pursuant to this Agreement all amounts received thereon
subsequent to the date of purchase or substitution, as the case may be;
(vi) to reimburse such Servicer for (A) any P&I Advance or Servicing
Advance previously made which such Servicer has determined to be a
Nonrecoverable P&I Advance or Nonrecoverable Servicing Advance in
accordance with the provisions of Section 4.01 and (B) any unpaid
Servicing Fees to the extent not recoverable from Liquidation Proceeds,
Insurance Proceeds or other amounts received with respect to the related
Mortgage Loan under Section 3.11(a)(iii);
(vii) to pay, or to reimburse such Servicer for advances in respect
of, expenses incurred in connection with any Mortgage Loan serviced by
such Servicer pursuant to Section 3.15;
(viii) to reimburse such Servicer, the Depositor or the Trustee for
expenses incurred by or reimbursable to such Servicer, the Depositor or
the Trustee, as the case may be, pursuant to Section 6.03, Section 7.02 or
Section 8.05;
(ix) to reimburse such Servicer or the Trustee, as the case may be,
for expenses reasonably incurred in respect of the breach or defect giving
rise to the repurchase obligation under Section 2.03 of this Agreement
that were included in the Repurchase Price of the Mortgage Loan, including
any expenses arising out of the enforcement of the repurchase obligation,
to the extent not otherwise paid pursuant to the terms hereof;
(x) to withdraw any amounts deposited in the related Collection
Account in error or for which amounts previously deposited are returned
due to a "not sufficient funds" or other denial of payment by the related
Mortgagor's banking institution;
(xi) to withdraw any amounts held in the related Collection Account
and not required to be remitted to the Trustee on the Remittance Date
occurring in the month in which such amounts are deposited into such
Collection Account, to reimburse such Servicer for xxxxxxxxxxxx X&X
Advances;
(xii) to invest funds in Permitted Investments in accordance with
Section 3.12; and
(xiii) to clear and terminate the related Collection Account upon
termination of this Agreement.
To the extent that a Servicer does not timely make the remittance
referred to in clause (i) above, such Servicer shall pay the Trustee for the
account of the Trustee interest on any amount not timely remitted at the prime
rate, from and including the applicable Remittance Date to but excluding the
date such remittance is actually made.
(b) Each Servicer shall keep and maintain separate accounting, on a
Mortgage Loan by Mortgage Loan basis, for the purpose of justifying any
withdrawal from its Collection Account, to the extent held by or on behalf of
it, pursuant to subclauses (a)(ii), (iii), (iv), (v), (vi), (vii), (viii) and
(ix) above. Each Servicer shall provide written notification to the Depositor,
on or prior to the next succeeding Remittance Date, upon making any withdrawals
from the related Collection Account pursuant to subclause (a)(vi) above.
Section 3.12 Investment of Funds in the Collection Accounts and the
Distribution Account (a) Each Servicer may invest the funds in the related
Collection Account and the Trustee may invest funds in the Distribution Account
during the Trustee Float Period, and shall (except during the Trustee Float
Period), invest such funds in the Distribution Account at the direction of the
Depositor (for purposes of this Section 3.12, each of the Collection Accounts
and the Distribution Accounts are referred to as an "Investment Account"), in
one or more Permitted Investments bearing interest or sold at a discount, and
maturing, unless payable on demand, no later than the Business Day on which such
funds are required to be withdrawn from such account pursuant to this Agreement
(except for investments made at the Depositor's direction, which shall mature no
later than the Business Day immediately preceding the date of required
withdrawal). All such Permitted Investments shall be held to maturity, unless
payable on demand. Any investment of funds in an Investment Account shall be
made in the name of the Trustee. The Trustee shall be entitled to sole
possession (except with respect to investment direction of funds held in the
related Account and any income and gain realized thereon in any Account other
than the Distribution Account during the Trustee Float Period) over each such
investment, and any certificate or other instrument evidencing any such
investment shall be delivered directly to the Trustee or its agent, together
with any document of transfer necessary to transfer title to such investment to
the Trustee. In the event amounts on deposit in an Investment Account are at any
time invested in a Permitted Investment payable on demand, the Trustee may:
(x) consistent with any notice required to be given thereunder,
demand that payment thereon be made on the last day such
Permitted Investment may otherwise mature hereunder in an
amount equal to the lesser of (1) all amounts then payable
thereunder and (2) the amount required to be withdrawn on such
date; and
(y) demand payment of all amounts due thereunder that such
Permitted Investment would not constitute a Permitted
Investment in respect of funds thereafter on deposit in the
Investment Account.
(b) All income and gain realized from the investment of funds
deposited in the related Collection Account and Escrow Account held by or on
behalf of the related Servicer, shall be for the benefit of such Servicer and
shall be subject to its withdrawal in the manner set forth in Section 3.11. Any
other benefit derived from the related Collection Account and Escrow Account
associated with the receipt, disbursement and accumulation of principal,
interest, taxes, hazard insurance, mortgage blanket insurance, and like sources,
shall accrue to the benefit of the related Servicer, except that no Servicer
shall realize any economic benefit from any forced charging of services except
as permitted by applicable law. Such Servicer shall deposit in the related
Collection Account and Escrow Account the amount of any loss of principal
incurred in respect of any such Permitted Investment made with funds in such
accounts immediately upon realization of such loss.
(c) All income and gain realized from the investment of funds
deposited in the Distribution Account held by the Trustee, shall be for the
benefit of the Depositor (except for any income or gain realized from the
investment of funds on deposit in the Distribution Account during the Trustee
Float Period, which shall be for the benefit of the Trustee). The Depositor
shall deposit in the Distribution Account (except with respect to the Trustee
Float Period, in which case the Trustee shall so deposit) the amount of any loss
of principal incurred in respect of any such Permitted Investment made with
funds in such accounts immediately upon realization of such loss.
(d) Except as otherwise expressly provided in this Agreement, if any
default occurs in the making of a payment due under any Permitted Investment, or
if a default occurs in any other performance required under any Permitted
Investment, the Trustee shall take such action as may be appropriate to enforce
such payment or performance, including the institution and prosecution of
appropriate proceedings.
(e) The Trustee or its Affiliates are permitted to receive
additional compensation that could be deemed to be in the Trustee's economic
self-interest for (i) serving as investment adviser, administrator, shareholder,
servicing agent, custodian or sub-custodian with respect to certain of the
Permitted Investments, (ii) using Affiliates to effect transactions in certain
Permitted Investments and (iii) effecting transactions in certain Permitted
Investments.
(f) The Trustee shall not be liable for the amount of any loss
incurred with respect of any investment (except that during the Trustee Float
Period, it will be responsible for reimbursing the Trust for such loss) or lack
of investment of funds held in any Investment Account or the Distribution
Account if made in accordance with this Section 3.12.
Section 3.13 Maintenance of Hazard Insurance, Errors and Omissions
and Fidelity Coverage (a) Each Servicer shall cause to be maintained for each
Mortgage Loan serviced by such Servicer fire insurance with extended coverage on
the related Mortgaged Property in an amount which is at least equal to the least
of (i) the outstanding principal balance of such Mortgage Loan, (ii) the amount
necessary to fully compensate for any damage or loss to the improvements that
are a part of such property on a replacement cost basis, (iii) the maximum
insurable value of the improvements which are a part of such Mortgaged Property,
and (iv) the amount determined by applicable federal or state law, in each case
in an amount not less than such amount as is necessary to avoid the application
of any coinsurance clause contained in the related hazard insurance policy. Each
Servicer shall also cause to be maintained fire insurance with extended coverage
on each REO Property serviced by such Servicer in an amount which is at least
equal to the lesser of (i) the maximum insurable value of the improvements which
are a part of such property and (ii) the outstanding principal balance of the
related Mortgage Loan at the time it became an REO Property, plus accrued
interest at the Mortgage Interest Rate and related Servicing Advances. Each
Servicer will comply in the performance of this Agreement with all reasonable
rules and requirements of each insurer under any such hazard policies. Any
amounts to be collected by any Servicer under any such policies (other than
amounts to be applied to the restoration or repair of the property subject to
the related Mortgage or amounts to be released to the Mortgagor in accordance
with the procedures that such Servicer would follow in servicing loans held for
its own account, subject to the terms and conditions of the related Mortgage and
Mortgage Note) shall be deposited in the related Collection Account, subject to
withdrawal pursuant to Section 3.11. If the Mortgagor fails to provide Mortgage
Loan hazard insurance coverage after thirty (30) days of such Servicer's written
notification, the applicable Servicer shall put in place such hazard insurance
coverage on the Mortgagor's behalf. Any out-of-pocket expense or advance made by
a Servicer on such force placed hazard insurance coverage shall be deemed a
Servicing Advance. Any cost incurred by any Servicer in maintaining any such
insurance shall not, for the purpose of calculating distributions to the
Trustee, be added to the unpaid principal balance of the related Mortgage Loan,
notwithstanding that the terms of such Mortgage Loan so permit. It is understood
and agreed that no earthquake or other additional insurance is to be required of
any Mortgagor other than pursuant to such applicable laws and regulations as
shall at any time be in force and as shall require such additional insurance. If
the Mortgaged Property or REO Property is at any time in an area identified in
the Federal Register by the Federal Emergency Management Agency as having
special flood hazards and flood insurance has been made available, the
applicable Servicer will cause to be maintained a flood insurance policy in
respect thereof. Such flood insurance shall be in an amount equal to the lesser
of (i) the minimum amount required, under the terms of coverage, to compensate
for any damage or loss on a replacement cost basis (or the unpaid principal
balance of the related Mortgage Loan if replacement cost coverage is not
available for the type of building insured) and (ii) the maximum amount of
insurance which is available under the Flood Disaster Protection Act of 1973, as
amended. If at any time during the term of the Mortgage Loan, any Servicer
determines in accordance with applicable law and pursuant to the Federal
Emergency Management Agency Guides that a Mortgaged Property is located in a
special flood hazard area and is not covered by flood insurance or is covered in
an amount less than the amount required by the Flood Disaster Protection Act of
1973, as amended, the applicable Servicer shall notify the related Mortgagor to
obtain such flood insurance coverage, and if said Mortgagor fails to obtain the
required flood insurance coverage within forty-five (45) days after such
notification, the applicable Servicer shall immediately force place the required
flood insurance on the Mortgagor's behalf. Any out-of-pocket expense or advance
made by the applicable Servicer on such force placed flood insurance coverage
shall be deemed a Servicing Advance.
In the event that any Servicer shall obtain and maintain a blanket
policy with an insurer either (i) acceptable to Xxxxxx Xxx or Xxxxxxx Mac, or
(ii) having a General Policy Rating of A:12 or better in Best's (or such other
rating that is comparable to such rating) insuring against hazard losses on all
of the Mortgage Loans, it shall conclusively be deemed to have satisfied its
obligations as set forth in the first two sentences of this Section 3.13, it
being understood and agreed that such policy may contain a deductible clause, in
which case such Servicer shall, in the event that there shall not have been
maintained on the related Mortgaged Property or REO Property a policy complying
with the first two sentences of this Section 3.13, and there shall have been one
or more losses which would have been covered by such policy, deposit to the
related Collection Account from its own funds the amount not otherwise payable
under the blanket policy because of such deductible clause. In connection with
its activities as administrator and servicer of the Mortgage Loans, each
Servicer agrees to prepare and present, on behalf of itself, the Trustee claims
under any such blanket policy in a timely fashion in accordance with the terms
of such policy.
(b) Each Servicer shall keep in force during the term of this
Agreement a policy or policies of insurance covering errors and omissions for
failure in the performance of such Servicer's obligations under this Agreement,
which policy or policies shall be in such form and amount that would meet the
requirements of Xxxxxx Mae or Xxxxxxx Mac if it were the purchaser of the
Mortgage Loans, unless such Servicer has obtained a waiver of such requirements
from Xxxxxx Mae or Xxxxxxx Mac. Each Servicer shall also maintain a fidelity
bond in the form and amount that would meet the requirements of Xxxxxx Mae or
Xxxxxxx Mac, unless such Servicer has obtained a waiver of such requirements
from Xxxxxx Mae or Xxxxxxx Mac. Each Servicer shall provide the Trustee upon
request with copies of any such insurance policies and fidelity bond. Each
Servicer shall be deemed to have complied with this provision if an Affiliate of
the applicable Servicer has such errors and omissions and fidelity bond coverage
and, by the terms of such insurance policy or fidelity bond, the coverage
afforded thereunder extends to such Servicer. Any such errors and omissions
policy and fidelity bond shall by its terms not be cancelable without thirty
days' prior written notice to the Trustee. Each Servicer shall also cause each
Subservicer to maintain a policy of insurance covering errors and omissions and
a fidelity bond which would meet such requirements.
Section 3.14 Enforcement of Due-on-Sale Clauses; Assumption
Agreements. Each Servicer will, to the extent it has knowledge of any conveyance
or prospective conveyance of any Mortgaged Property by any Mortgagor (whether by
absolute conveyance or by contract of sale, and whether or not the Mortgagor
remains or is to remain liable under the Mortgage Note and/or the Mortgage),
exercise its rights to accelerate the maturity of such Mortgage Loan under the
"due-on-sale" clause, if any, applicable thereto; provided, however, that no
Servicer shall be required to take such action if, in its sole business
judgment, a Servicer believes it is not in the best interests of the Trust Fund
and shall not exercise any such rights if prohibited by law from doing so. If a
Servicer reasonably believes it is unable under applicable law to enforce such
"due-on-sale" clause or if any of the other conditions set forth in the proviso
to the preceding sentence apply, such Servicer will enter into an assumption and
modification agreement from or with the person to whom such property has been
conveyed or is proposed to be conveyed, pursuant to which such person becomes
liable under the Mortgage Note, and, to the extent permitted by applicable state
law, the Mortgagor remains liable thereon. Each Servicer is also authorized to
enter into a substitution of liability agreement with such person, pursuant to
which the original Mortgagor is released from liability and such person is
substituted as the Mortgagor and becomes liable under the Mortgage Note;
provided, that no such substitution shall be effective unless such person
satisfies the underwriting criteria of such Servicer and such substitution is in
the best interest of the Certificateholders as determined by the Servicer. In
connection with any assumption, modification or substitution, such Servicer
shall apply such underwriting standards and follow such practices and procedures
as shall be normal and usual in its general mortgage servicing activities and as
it applies to other mortgage loans owned solely by it. No Servicer shall take or
enter into any assumption and modification agreement, however, unless (to the
extent practicable in the circumstances) it shall have received confirmation, in
writing, of the continued effectiveness of any applicable hazard insurance
policy, or a new policy meeting the requirements of this Section is obtained.
Any fee collected by a Servicer in respect of an assumption or substitution of
liability agreement will be retained by such Servicer as additional servicing
compensation. In connection with any such assumption, no material term of the
Mortgage Note (including but not limited to the related Mortgage Interest Rate
and the amount of the Scheduled Payment) may be amended or modified, except as
otherwise required pursuant to the terms thereof. Each Servicer shall notify the
Custodian and the Trustee, as applicable, that any such substitution,
modification or assumption agreement has been completed by forwarding to the
Custodian and the Trustee, as applicable, the executed original of such
substitution or assumption agreement, which document shall be added to the
related Mortgage File and shall, for all purposes, be considered a part of such
Mortgage File to the same extent as all other documents and instruments
constituting a part thereof.
Notwithstanding the foregoing paragraph or any other provision of
this Agreement, a Servicer shall not be deemed to be in default, breach or any
other violation of its obligations hereunder by reason of any assumption of a
Mortgage Loan by operation of law or by the terms of the Mortgage Note or any
assumption which such Servicer may be restricted by law from preventing, for any
reason whatsoever. For purposes of this Section 3.14, the term "assumption" is
deemed to also include a sale (of the Mortgaged Property) subject to the
Mortgage that is not accompanied by an assumption or substitution of liability
agreement.
Section 3.15 Realization upon Defaulted Mortgage Loans. Each
Servicer shall use its best efforts, consistent with Accepted Servicing
Practices, to foreclose upon or otherwise comparably convert (which may include
an acquisition of REO Property) the ownership of 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
pursuant to Section 3.07, and which are not released from this Agreement
pursuant to any other provision hereof. Each Servicer shall use reasonable
efforts to realize upon such defaulted Mortgage Loans in such manner as will
maximize the receipt of principal and interest by the Trustee, taking into
account, among other things, the timing of foreclosure proceedings; provided,
however with respect to any Second Lien Mortgage Loan for which the related
First Lien Mortgage Loan is not included in the Trust Fund, if, after such
Mortgage Loan becomes 180 days or more delinquent, the related Servicer
determines that a significant net recovery is not possible through foreclosure,
such Mortgage Loan may be charged off and the Mortgage Loan will be treated as a
Liquidated Mortgage Loan giving rise to a Realized Loss. The foregoing is
subject to the provisions that, in any case in which a Mortgaged Property shall
have suffered damage from an uninsured cause, the related Servicer shall not be
required to expend its own funds toward the restoration of such property unless
it shall determine in its sole discretion (i) that such restoration will
increase the net proceeds of liquidation of the related Mortgage Loan to the
Trustee, after reimbursement to itself for such expenses, and (ii) that such
expenses will be recoverable by such Servicer through Insurance Proceeds,
Condemnation Proceeds or Liquidation Proceeds from the related Mortgaged
Property, as contemplated in Section 3.11. Each Servicer shall be responsible
for all other costs and expenses incurred by it in any such proceedings;
provided, however, that it shall be entitled to reimbursement thereof from the
related property, as contemplated in Section 3.11.
In the event that the related First Lien Mortgage Loan is not being
serviced by a Servicer, such Servicer shall have no liability for any losses
resulting from a foreclosure on a Second Lien Mortgage Loan in connection with
the foreclosure on the related First Lien Mortgage Loan for which the related
First Lien Mortgage Loan is not included in the Trust Fund where the applicable
Servicer did not receive notice or otherwise had no actual knowledge regarding
such foreclosure on the related First Lien Mortgage Loan; provided, however, if
the applicable Servicer is either notified or has actual knowledge that any
holder of a First Lien Mortgage Loan intends to accelerate the obligations
secured by the First Lien Mortgage Loan, or that any such holder intends to
declare a default under the mortgage or promissory note secured thereby, or has
filed or intends to file an election to have the related Mortgaged Property sold
or foreclosed, the applicable Servicer shall take, on behalf of the Trust,
whatever actions are necessary to protect the interests of the Trust in
accordance with Accepted Servicing Practices and the REMIC Provisions. The
applicable Servicer shall not be required to make a Servicing Advance pursuant
to Section 4.01 with respect thereto except to the extent that it determines in
its reasonable good faith judgment that such advance would be recoverable from
Liquidation Proceeds on the related Second Lien Mortgage Loan and in no event in
an amount that is greater than the then outstanding principal balance of the
related Second Lien Mortgage Loan. The Servicer shall thereafter take such
action as is reasonably necessary to recover any amount so advanced and to
otherwise reimburse itself as a Servicing Advance from the Collection Account
pursuant to Section 3.11.
The proceeds of any Liquidation Event or REO Disposition, as well as
any recovery resulting from a partial collection of Insurance Proceeds,
Condemnation Proceeds or Liquidation Proceeds or any income from an REO
Property, will be applied in the following order of priority: first, to
reimburse the applicable Servicer or any Subservicer for any related
unreimbursed Servicing Advances, pursuant to Section 3.11 or 3.17; second, to
reimburse any Servicer for any related xxxxxxxxxxxx X&X Advances, pursuant to
Section 3.11; third, to accrued and unpaid interest on the Mortgage Loan or REO
Imputed Interest, at the Mortgage Interest Rate, to the date of the liquidation
or REO Disposition, or to the Due Date prior to the Remittance Date on which
such amounts are to be distributed if not in connection with a Liquidation Event
or REO Disposition; and fourth, as a recovery of principal of the Mortgage Loan.
If the amount of the recovery so allocated to interest is less than a full
recovery thereof, that amount will be allocated as follows: first, to unpaid
Servicing Fees; and second, as interest at the Mortgage Interest Rate (net of
the Servicing Fee Rate). The portion of the recovery so allocated to unpaid
Servicing Fees shall be reimbursed to the applicable Servicer or any Subservicer
pursuant to Section 3.11 or 3.17. The portions of the recovery so allocated to
interest at the Mortgage Interest Rate (net of the Servicing Fee Rate) and to
principal of the Mortgage Loan shall be applied as follows: first, to reimburse
the applicable Servicer or any Subservicer for any related unreimbursed
Servicing Advances in accordance with Section 3.11 or 3.17, and second, to the
Trustee in accordance with the provisions of Section 4.02, subject to the last
paragraph of Section 3.17 with respect to certain excess recoveries from an REO
Disposition.
Notwithstanding anything to the contrary contained herein, in
connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in
the event a Servicer has received actual notice of, or has actual knowledge of
the presence of, hazardous or toxic substances or wastes on the related
Mortgaged Property, or if the Trustee otherwise requests, such Servicer shall
cause an environmental inspection or review of such Mortgaged Property to be
conducted by a qualified inspector. Upon completion of the inspection, such
Servicer shall promptly provide the Trustee and the Depositor, with a written
report of the environmental inspection.
After reviewing the environmental inspection report, the applicable
Servicer shall determine consistent with Accepted Servicing Practices how to
proceed with respect to the Mortgaged Property. In the event (a) the
environmental inspection report indicates that the Mortgaged Property is
contaminated by hazardous or toxic substances or wastes and (b) the applicable
Servicer determines, consistent with Accepted Servicing Practices, to proceed
with foreclosure or acceptance of a deed in lieu of foreclosure, such Servicer
shall be reimbursed for all reasonable costs associated with such foreclosure or
acceptance of a deed in lieu of foreclosure and any related environmental
clean-up costs, as applicable, from the related Liquidation Proceeds, or if the
Liquidation Proceeds are insufficient to fully reimburse such Servicer, such
Servicer shall be entitled to be reimbursed from amounts in the Collection
Account pursuant to Section 3.11. In the event the applicable Servicer
determines not to proceed with foreclosure or acceptance of a deed in lieu of
foreclosure, such Servicer shall be reimbursed from general collections for all
Servicing Advances made with respect to the related Mortgaged Property from the
Collection Account pursuant to Section 3.11. The Trustee shall not be
responsible for any determination made by the applicable Servicer pursuant to
this paragraph or otherwise.
Section 3.16 Release of Mortgage Files. (a) Upon the payment in full
of any Mortgage Loan, or the receipt by a Servicer of a notification that
payment in full shall be escrowed in a manner customary for such purposes, such
Servicer will, within five (5) Business Days of the payment in full, notify the
Custodian or the Trustee, as applicable, by a certification (which certification
shall include a statement to the effect that all amounts received or to be
received in connection with such payment which are required to be deposited in
the related Collection Account pursuant to Section 3.10 have been or will be so
deposited) of a Servicing Officer and shall request delivery to it of the
Custodial File by completing a Request for Release to the Custodian or the
Trustee, as applicable. Upon receipt of such certification and Request for
Release, the Custodian or the Trustee, as applicable, shall promptly release the
related Custodial File to such Servicer within three (3) Business Days. No
expenses incurred in connection with any instrument of satisfaction or deed of
reconveyance shall be chargeable to the related Collection Account.
(b) From time to time and as appropriate for the servicing or
foreclosure of any Mortgage Loan, including, for this purpose, collection under
any insurance policy relating to the Mortgage Loans, the Custodian or the
Trustee, as applicable, shall, upon request of such Servicer and delivery to the
Custodian or the Trustee, as applicable, of a Request for Release, release the
related Custodial File to such Servicer, and the Custodian or the Trustee, as
applicable, shall, at the direction of such Servicer, execute such documents
provided to it as shall be necessary to the prosecution of any such proceedings
and the Servicer shall retain the Mortgage File in trust for the benefit of the
Trustee. Such Request for Release shall obligate the applicable Servicer to
return each and every document previously requested from the Custodial File to
the Custodian or the Trustee, as applicable, when the need therefor by such
Servicer no longer exists, unless the Mortgage Loan has been liquidated and the
Liquidation Proceeds relating to the Mortgage Loan have been deposited in the
related Collection Account or the Mortgage File or such document has been
delivered to an attorney, or to a public trustee or other public official as
required by law, for purposes of initiating or pursuing legal action or other
proceedings for the foreclosure of the Mortgaged Property either judicially or
non-judicially, and such Servicer has delivered to the Custodian or the Trustee,
as applicable, a certificate of a Servicing Officer certifying as to the name
and address of the Person to which such Mortgage File or such document was
delivered and the purpose or purposes of such delivery. Upon receipt of a
certificate of a Servicing Officer stating that such Mortgage Loan was
liquidated and that all amounts received or to be received in connection with
such liquidation that are required to be deposited into the related Collection
Account have been so deposited, or that such Mortgage Loan has become an REO
Property, a copy of the Request for Release shall be released by the Custodian
or the Trustee, as applicable, to the applicable Servicer or its designee. Upon
receipt of a Request for Release under this Section 3.16, the Custodian or the
Trustee, as applicable, shall deliver the related Custodial File to the
requesting Servicer by regular mail, unless such Servicer requests that the
Custodian or the Trustee, as applicable, deliver such Custodial File to such
Servicer by overnight courier (in which case such delivery shall be at the
applicable Servicer's expense); provided, however, that in the event such
Servicer has not previously received copies of the relevant Mortgage Loan
Documents necessary to service the related Mortgage Loan in accordance with
Accepted Servicing Practices, the Depositor shall use reasonable efforts to
cause the Purchaser to reimburse such Servicer for any overnight courier charges
incurred for the requested Custodial Files.
Upon written certification of a Servicing Officer, the Trustee shall
execute and deliver to any Servicer copies of any court pleadings, requests for
trustee's sale or other documents reasonably necessary to the foreclosure or
trustee's sale in respect of a Mortgaged Property or to any legal action brought
to obtain judgment against any Mortgagor on the Mortgage Note or Mortgage or to
obtain a deficiency judgment, or to enforce any other remedies or rights
provided by the Mortgage Note or Mortgage or otherwise available at law or in
equity, or shall exercise and deliver to such Servicer a power of attorney
sufficient to authorize such Servicer to execute such documents on its behalf.
Each such certification shall include a request that such pleadings or documents
be executed by the Trustee and a statement as to the reason such documents or
pleadings are required and that the execution and delivery thereof by the
Trustee will not invalidate or otherwise affect the lien of the Mortgage, except
for the termination of such a lien upon completion of the foreclosure or
trustee's sale.
Section 3.17 Title, Conservation and Disposition of REO Property.
(a) This Section shall apply only to REO Properties acquired for the account of
the Trustee and shall not apply to any REO Property relating to a Mortgage Loan
which was purchased or repurchased from the Trustee pursuant to any provision
hereof. In the event that title to any such REO Property is acquired, the
applicable Servicer shall cause the deed or certificate of sale to be issued in
the name of the Trustee, on behalf of the Certificateholders, or the Trustee's
nominee.
(b) Each Servicer shall manage, conserve, protect and operate each
REO Property for the Trustee solely for the purpose of its prompt disposition
and sale. Each Servicer, either itself or through an agent selected by such
Servicer, shall manage, conserve, protect and operate the REO Property in the
same manner that it manages, conserves, protects and operates other foreclosed
property for its own account, and in the same manner that similar property in
the same locality as the REO Property is managed. Each Servicer shall attempt to
sell the same (and may temporarily rent the same for a period not greater than
one year, except as otherwise provided below) on such terms and conditions as
such Servicer deems to be in the best interest of the Trustee.
(c) Each Servicer shall use Accepted Servicing Practices, to dispose
of the REO Property as soon as possible and shall sell such REO Property in any
event within three years after title has been taken to such REO Property, unless
such Servicer determines, and gives an appropriate notice to the Trustee to such
effect, that a longer period is necessary for the orderly liquidation of such
REO Property, so long as such extended period is within the time period
specified in Section 3.17(h). Subject to Section 3.17(h), if a period longer
than three years is permitted under the foregoing sentence and is necessary to
sell any REO Property, the applicable Servicer shall report monthly to the
Trustee as to the progress being made in selling such REO Property. The Trustee
has no obligation with respect to REO Dispositions.
(d) Each Servicer shall segregate and hold all funds collected and
received in connection with the operation of any REO Property separate and apart
from its own funds and general assets and shall deposit such funds in the
related Collection Account.
(e) Each Servicer shall deposit net of reimbursement to the Servicer
for any related outstanding Servicing Advances and unpaid Servicing Fees
provided in Section 3.11, or cause to be deposited, on a daily basis in the
Collection Account all revenues received with respect to the related REO
Property and shall withdraw therefrom funds necessary for the proper operation,
management and maintenance of the REO Property.
(f) Each Servicer, upon an REO Disposition, shall be entitled to
reimbursement for any related unreimbursed Servicing Advances as well as any
unpaid Servicing Fees from proceeds received in connection with the REO
Disposition, as further provided in Section 3.11.
(g) Any net proceeds from an REO Disposition which are in excess of
the unpaid principal balance of the related Mortgage Loan plus all unpaid REO
Imputed Interest thereon through the date of the REO Disposition shall be
retained by the applicable Servicer as additional servicing compensation.
(h) Each Servicer shall use Accepted Servicing Practices, to sell,
or cause the Subservicer to sell, in accordance with Accepted Servicing
Practices, any REO Property as soon as possible, but in no event later than the
conclusion of the third calendar year beginning after the year of its
acquisition by the REMIC unless (i) such Servicer applies for an extension of
such period from the Internal Revenue Service pursuant to the REMIC Provisions
and Code Section 856(e)(3), in which event such REO Property shall be sold
within the applicable extension period pursuant to the requirements of Section
3.17(c), or (ii) such Servicer obtains for the Trustee an Opinion of Counsel,
addressed to the Depositor, the Trustee and such Servicer, to the effect that
the holding by the Pooling-Tier REMIC-1 of such REO Property subsequent to such
period will not result in the imposition of taxes on "prohibited transactions"
as defined in Section 860F of the Code or cause any Trust REMIC to fail to
qualify as a REMIC under the REMIC Provisions or comparable provisions of
relevant state laws at any time. Each Servicer shall manage, conserve, protect
and operate each REO Property serviced by such Servicer for the Trustee solely
for the purpose of its prompt disposition and sale in a manner which does not
cause such REO Property to fail to qualify as "foreclosure property" within the
meaning of Section 860G(a)(8) or result in the receipt by the Pooling-Tier
REMIC-1 of any "income from non-permitted assets" within the meaning of Section
860F(a)(2)(B) of the Code or any "net income from foreclosure property" which is
subject to taxation under Section 860G(a)(1) of the Code. Pursuant to its
efforts to sell such REO Property, the applicable Servicer shall either itself
or through an agent selected by such Servicer protect and conserve such REO
Property in the same manner and to such extent as is customary in the locality
where such REO Property is located and may, incident to its conservation and
protection of the interests of the Trustee on behalf of the Certificateholders,
rent the same, or any part thereof, as such Servicer deems to be in the best
interest of the Trustee on behalf of the Certificateholders for the period prior
to the sale of such REO Property; provided, however, that any rent received or
accrued with respect to such REO Property qualifies as "rents from real
property" as defined in Section 856(d) of the Code.
Section 3.18 Notification of Adjustments. With respect to each
Adjustable Rate Mortgage Loan, the applicable Servicer shall adjust the Mortgage
Interest Rate on the related Adjustment Date and shall adjust the Scheduled
Payment on the related mortgage payment adjustment date, if applicable, in
compliance with the requirements of applicable law and the related Mortgage and
Mortgage Note. In the event that an Index becomes unavailable or otherwise
unpublished, the applicable Servicer shall select a comparable alternative index
over which it has no direct control and which is readily verifiable. Each
Servicer shall execute and deliver any and all necessary notices required under
applicable law and the terms of the related Mortgage Note and Mortgage regarding
the Mortgage Interest Rate and Scheduled Payment adjustments. Each Servicer
shall promptly, upon written request therefor, deliver to the Trustee such
notifications and any additional applicable data regarding such adjustments and
the methods used to calculate and implement such adjustments. Upon the discovery
by a Servicer or the receipt of notice from the Trustee that a Servicer has
failed to adjust a Mortgage Interest Rate or Scheduled Payment in accordance
with the terms of the related Mortgage Note, such Servicer shall deposit in the
related Collection Account from its own funds the amount of any interest loss
caused as such interest loss occurs.
Section 3.19 Access to Certain Documentation and Information
Regarding the Mortgage Loans The applicable Servicer shall provide, or cause the
applicable Subservicer to provide, to the Depositor, the Trustee, the OTS or the
FDIC and the examiners and supervisory agents thereof, access to the
documentation regarding the Mortgage Loans in its possession required by
applicable regulations of the OTS. With respect to JPMorgan and Countrywide,
such access shall be afforded without charge, but only upon 15 days' (or, if an
Event of Default has occurred and is continuing, 3 Business Days') prior written
request and during normal business hours at the offices of JPMorgan and
Countrywide. Nothing in this Section shall derogate from the obligation of any
such party to observe any applicable law prohibiting disclosure of information
regarding the Mortgagors and the failure of any such party to provide access as
provided in this Section as a result of such obligation shall not constitute a
breach of this Section.
Nothing in this Section 3.19 shall require a Servicer to collect,
create, collate or otherwise generate any information that it does not generate
in its usual course of business. The Servicers shall not be required to make
copies of or to ship documents to any Person who is not a party to this
Agreement, and then only if provisions have been made for the reimbursement of
the costs thereof.
Section 3.20 Documents, Records and Funds in Possession of the
Servicers to Be Held for the Trustee Each Servicer shall account fully to the
Trustee for any funds received by such Servicer or which otherwise are collected
by such Servicer as Liquidation Proceeds, Condemnation Proceeds or Insurance
Proceeds in respect of any Mortgage Loan serviced by such Servicer. All Mortgage
Files and funds collected or held by, or under the control of, a 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 its Collection Account, shall be held by such 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.
Each Servicer also agrees that it shall not create, incur or subject any
Mortgage File or any funds that are deposited in any Collection Account, the
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 such Servicer shall
be entitled to set off against and deduct from any such funds any amounts that
are properly due and payable to such Servicer under this Agreement.
Section 3.21 Servicing Compensation. (a) As compensation for its
activities hereunder, each Servicer shall, with respect to each Mortgage Loan,
be entitled to retain from deposits to its Collection Account and from
Liquidation Proceeds, Insurance Proceeds, and Condemnation Proceeds related to
such Mortgage Loan, the Servicing Fee with respect to each Mortgage Loan (less
any portion of such amounts retained by any Subservicer). In addition, each
Servicer shall be entitled to recover unpaid Servicing Fees out of related Late
Collections and as otherwise permitted in Section 3.11. The right to receive the
Servicing Fee may not be transferred in whole or in part except as provided in
Section 10.07 or in connection with the transfer of all of the applicable
Servicer's responsibilities and obligations under this Agreement; provided,
however, that each Servicer may pay from the Servicing Fee any amounts due to a
Subservicer pursuant to a Subservicing Agreement entered into under Section
3.02.
(b) Additional servicing compensation in the form of assumption or
modification fees, late payment charges, NSF fees, reconveyance fees and other
similar fees and charges (other than Prepayment Premiums) shall be retained by a
Servicer only to the extent such fees or charges are received by such Servicer.
Each Servicer shall also be entitled pursuant to Section 3.09(b)(vi) and Section
3.11(a)(iv) to withdraw from the related Collection Account, as additional
servicing compensation, interest or other income earned on deposits therein.
(c) Each Servicer shall be required to pay all expenses incurred by
it in connection with its servicing activities hereunder (including payment of
premiums for any blanket policy insuring against hazard losses pursuant to
Section 3.13, servicing compensation of the Subservicer to the extent not
retained by it and the fees and expenses of independent accountants and any
agents appointed by such Servicer), and shall not be entitled to reimbursement
therefor except as specifically provided in Section 3.11.
Section 3.22 Annual Statement as to Compliance. Each Servicer will
deliver or cause to be delivered to the Depositor, the Rating Agencies, and the
Trustee on or before March 15th of each calendar year, commencing in 2006, an
Officer's Certificate stating, as to each signatory thereof, that (i) a review
of the activities of such Servicer during the preceding calendar year and of
performance under this Agreement or a similar agreement has been made under such
officers' supervision, and (ii) to the best of such officers' knowledge, based
on such review, such Servicer has fulfilled all of 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
officers 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 applicable Servicer as to the nature of any
defaults by such Servicer in the fulfillment of any of such Servicer's
obligations. The obligations of a Servicer under this Section apply to each
Servicer that serviced during the applicable period, whether or not such
Servicer is acting as a Servicer at the time such Officer's Certificate is
required to be delivered.
Section 3.23 Annual Independent Public Accountants' Servicing
Statement; Financial Statements Not later than March 15th of each calendar year
commencing in 2006, each Servicer, at its expense, shall cause a nationally
recognized firm of independent certified public accountants to furnish to the
Depositor, the Rating Agencies, and the Trustee a report stating that (i) it has
obtained a letter of representation regarding certain matters from the
management of such Servicer which includes an assertion that such Servicer has
complied with certain minimum residential mortgage loan servicing standards,
identified in the Uniform Single Attestation Program for Mortgage Bankers
established by the Mortgage Bankers Association of America, with respect to the
servicing of residential mortgage loans during the most recently completed
calendar year and (ii) on the basis of an examination conducted by such firm in
accordance with standards established by the American Institute of Certified
Public Accountants, such representation is fairly stated in all material
respects, subject to such exceptions and other qualifications that may be
appropriate. In rendering its report such firm may rely, as to matters relating
to the direct servicing of residential mortgage loans by Subservicers, upon
comparable reports of firms of independent certified public accountants rendered
on the basis of examinations conducted in accordance with the same standards
(rendered within one year of such report) with respect to those Subservicers.
Promptly after receipt of such report, the Depositor shall review such report
and, if applicable, consult with the applicable Servicer as to the nature of any
defaults by such Servicer in the fulfillment of any of such Servicer's
obligations. The obligations of a Servicer under this Section apply to each
Servicer that serviced during the applicable period, whether or not such
Servicer is acting as a Servicer at the time such report is required to be
delivered.
Section 3.24 Trustee to Act as Servicer. (a) In the event that any
Servicer shall for any reason no longer be a Servicer hereunder (including by
reason of an Event of Default), the Trustee or its successor shall, thereupon
assume all of the rights and obligations of such Servicer hereunder arising
thereafter (except that the Trustee shall not be (i) liable for losses of such
predecessor Servicer pursuant to Section 3.10 or any acts or omissions of such
predecessor 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 pursuant to Section 2.03, (iv)
responsible for expenses of such Servicer pursuant to Section 2.03 or (v) deemed
to have made any representations and warranties of such Servicer hereunder). Any
such assumption shall be subject to Section 7.02.
(b) Every Subservicing Agreement entered into by a Servicer shall
contain a provision giving the successor Servicer the option to terminate such
agreement in the event a successor Servicer is appointed.
(c) If any Servicer shall for any reason no longer be a Servicer
(including by reason of any Event of Default), the Trustee (or any other
successor Servicer) may, at its option, succeed to any rights and obligations of
such Servicer under any Subservicing Agreement in accordance with the terms
thereof; provided, that the Trustee (or any other successor Servicer) shall not
incur any liability or have any obligations in its capacity as successor
Servicer under a Subservicing Agreement arising prior to the date of such
succession unless it expressly elects to succeed to the rights and obligations
of such Servicer thereunder; and such Servicer shall not thereby be relieved of
any liability or obligations under the Subservicing Agreement arising prior to
the date of such succession.
(d) The applicable Servicer shall, upon request of the Trustee, but
at the expense of the Servicer, deliver to the assuming party all documents and
records relating to each Subservicing Agreement (if any) to which it is a party
and the Mortgage Loans then being serviced thereunder and an accounting of
amounts collected and held by it and otherwise use its best efforts to effect
the orderly and efficient transfer of such Subservicing Agreement to the
assuming party.
Section 3.25 Compensating Interest. Each Servicer shall remit to the
Trustee on each Remittance Date an amount from its own funds equal to
Compensating Interest payable by such Servicer for such Remittance Date;
provided, however, the Servicers are not required to pay Compensating Interest
on any Acoustic Mortgage Loan or First NLC Mortgage Loan subject to an Interim
Servicing Agreement for the period prior to the applicable Servicing Transfer
Date.
Section 3.26 Credit Reporting; Xxxxx-Xxxxx-Xxxxxx Act. (a) With
respect to each Mortgage Loan, each Servicer shall fully furnish, in accordance
with the Fair Credit Reporting Act and its implementing regulations, accurate
and complete information (e.g., favorable and unfavorable) on the related
Mortgagor credit files to Equifax, Experian and TranUnion Credit Information
Company (three of the national credit repositories), on a monthly basis.
(b) The Servicer shall comply with all provisions of the Privacy
Laws relating to the Mortgage Loans, the related borrowers and any "nonpublic
personal information" (as defined in the Privacy Laws) received by the Servicer
incidental to the performance of its obligations under this Agreement,
including, maintaining adequate information security procedures to protect such
nonpublic personal information and providing all privacy notices required by the
Privacy Laws.
Section 3.27 Excess Reserve Fund Account; Distribution Account. (a)
The Trustee shall establish and maintain the Excess Reserve Fund Account, on
behalf of the Class X Certificateholders, to receive that portion of the
distributions on the Class X Interest up to an amount equal to any Basis Risk
Payments and to pay to the Principal Certificateholders any Basis Risk Carry
Forward Amounts (prior to using any Net Swap Receipts). For the avoidance of
doubt, any Basis Risk Carry Forward Amounts shall be paid to the Principal
Certificates first from the Excess Reserve Fund Account and then from the
Supplemental Interest Trust.
On each Distribution Date on which there exists a Basis Risk Carry
Forward Amount on any Class of Principal Certificates, the Trustee shall (1)
withdraw from the Distribution Account and deposit in the Excess Reserve Fund
Account, as set forth in Section 4.02(a)(iii)(H), the lesser of the Class X
Distributable Amount (to the extent remaining after the distributions specified
in Sections 4.02(a)(iii)(A)-(G) and without regard to the reduction in clause
(iii) of the definition thereof) and the aggregate Basis Risk Carry Forward
Amount and (2) withdraw from the Excess Reserve Fund Account amounts necessary
to pay to such Class or Classes of Principal Certificates the applicable Basis
Risk Carry Forward Amounts. Such payments, along with payments from the
Supplemental Interest Trust, shall be allocated to those Classes based upon the
amount of Basis Risk Carry Forward Amount owed to each such Class and shall be
paid in the priority set forth in Section 4.02(a)(iii)(I). In the event that the
Class Certificate Balance of any Class of Certificates is reduced because of
Applied Realized Loss Amounts, the applicable Certificateholders will not be
entitled to receive Basis Risk Carry Forward Amounts on the written down amounts
on such Distribution Date or any future Distribution Dates (except to the extent
such Class Certificate Balance is increased as a result of any Subsequent
Recoveries), even if funds are otherwise available for distribution.
The Trustee shall account for the Excess Reserve Fund Account as an
asset of a grantor trust under subpart E, Part I of subchapter J of the Code and
not as an asset of any Trust REMIC created pursuant to this Agreement. The
beneficial owners of the Excess Reserve Fund Account are the Class X
Certificateholders.
Any Basis Risk Carry Forward Amounts distributed by the Trustee to
the Principal Certificateholders from the Excess Reserve Fund Account shall be
accounted for by the Trustee, for federal income tax purposes, as amounts paid
first to the Holders of the Class X Certificates (in respect of the Class X
Interest) and then to the respective Class or Classes of Principal Certificates.
In addition, the Trustee shall account for the rights of Holders of each Class
of Principal Certificates to receive payments of Basis Risk Carry Forward
Amounts from the Excess Reserve Fund Account (along with payments of Basis Risk
Carry Forward Amounts and Upper-Tier Carry Forward Amounts from the Supplemental
Interest Trust) as rights in a separate limited recourse interest rate cap
contract written by the Class X Certificateholders in favor of Holders of each
such Class.
Notwithstanding any provision contained in this Agreement, the
Trustee shall not be required to make any payments from the Excess Reserve Fund
Account except as expressly set forth in this Section 3.27(a).
(b) The Trustee shall establish and maintain the Distribution
Account on behalf of the Certificateholders. The Trustee shall, promptly upon
receipt on the Business Day received, deposit in the Distribution Account and
retain therein the following:
(i) the aggregate amount remitted by the Servicer to the Trustee
pursuant to Section 3.11;
(ii) any amount deposited by the Servicer pursuant to Section
3.12(b) in connection with any losses on Permitted Investments;
(iii) any amounts remitted by the Servicer to the Trustee in respect
of Compensating Interest pursuant to Section 3.25; and
(iv) any other amounts deposited hereunder which are required to be
deposited in the Distribution Account.
In the event that the Servicer shall remit any amount not required
to be remitted, the Servicer may at any time direct the Trustee in writing to
withdraw such amount from the Distribution Account, any provision herein to the
contrary notwithstanding. Such direction may be accomplished by delivering
notice 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 4.02.
(c) In order to comply with its duties under the USA Patriot Act of
2001, the Trustee shall obtain and verify certain information and documentation
from the other parties to this Agreement including, but not limited to, each
such party's name, address, and other identifying information.
Section 3.28 Optional Purchase of Delinquent Mortgage Loans. The
Depositor, in its sole discretion, shall have the option, but shall not be
obligated, to purchase any 90+ Delinquent Mortgage Loans from the Trust Fund.
The purchase price for any such Mortgage Loan shall be 100% of the unpaid
principal balance of such Mortgage Loan plus accrued and unpaid interest on the
related Mortgage Loan at the applicable Mortgage Interest Rate, plus the amount
of any unreimbursed Servicing Advances made by the applicable Servicer. Upon
receipt of such purchase price, the applicable Servicer shall provide to the
Trustee a Request for Release and the Trustee shall promptly release to the
Depositor, the Mortgage File relating to the Mortgage Loan being repurchased.
Section 3.29 Transfer of Servicing for Certain Acoustic Mortgage
Loans and Certain First NLC Mortgage Loans. Prior to the Servicing Transfer
Date, the Depositor shall use reasonable efforts to cause Acoustic and First NLC
to comply with each of the servicing transfer requirements set forth in the
applicable Interim Servicing Agreement and in accordance with customary industry
procedures.
ARTICLE IV
DISTRIBUTIONS AND
ADVANCES BY THE SERVICERS
Section 4.01 Advances. (a) The amount of P&I Advances to be made by
each Servicer for any Remittance Date shall equal, subject to Section 4.01(c),
the sum of (i) the aggregate amount of Scheduled Payments (with each interest
portion thereof net of the related Servicing Fee), due during the Due Period
immediately preceding such Remittance Date in respect of the Mortgage Loans
serviced by such Servicer, which Scheduled Payments were not received as of the
close of business on the related Determination Date, plus (ii) with respect to
each REO Property, which REO Property was acquired during or prior to the
related Prepayment Period and as to which such REO Property an REO Disposition
did not occur during the related Prepayment Period, an amount equal to the
excess, if any, of the Scheduled Payments (with REO Imputed Interest) that would
have been due on the related Due Date in respect of the related Mortgage Loan,
over the net income from such REO Property transferred to the related Collection
Account for distribution on such Remittance Date.
(b) On each Remittance Date, each Servicer shall remit in
immediately available funds to the Trustee an amount equal to the aggregate
amount of P&I Advances, if any, to be made in respect of the Mortgage Loans and
REO Properties serviced by such Servicer for the related Remittance Date either
(i) from its own funds or (ii) from the related Collection Account, to the
extent of funds held therein for future distribution (in which case, it will
cause to be made an appropriate entry in the records of the related Collection
Account that Amounts Held for Future Distribution have been, as permitted by
this Section 4.01, used by such Servicer in discharge of any such P&I Advance)
or (iii) in the form of any combination of (i) and (ii) aggregating the total
amount of P&I Advances to be made by such Servicer with respect to the Mortgage
Loans and REO Properties. Any Amounts Held for Future Distribution and so used
shall be appropriately reflected in such Servicer's records and replaced by such
Servicer by deposit in the related Collection Account on or before any future
Remittance Date to the extent required.
(c) The obligation of each Servicer to make such P&I Advances is
mandatory, notwithstanding any other provision of this Agreement but subject to
(d) below, and, with respect to any Mortgage Loan or REO Property, shall
continue until a Final Recovery Determination in connection therewith or the
removal thereof from coverage under this Agreement, except as otherwise provided
in this Section.
(d) Notwithstanding anything herein to the contrary, no P&I Advance
or Servicing Advance shall be required to be made hereunder by either Servicer
if such P&I Advance or Servicing Advance would, if made, constitute a
Nonrecoverable P&I Advance or Nonrecoverable Servicing Advance. The
determination by either Servicer that it has made a Nonrecoverable P&I Advance
or a Nonrecoverable Servicing Advance or that any proposed P&I Advance or
Servicing Advance, if made, would constitute a Nonrecoverable P&I Advance or a
Nonrecoverable Servicing Advance, respectively, shall be evidenced by an
Officer's Certificate of such Servicer delivered to the Trustee. In addition no
Servicer shall be required to advance any Relief Act Interest Shortfalls.
(e) Except as otherwise provided herein, the applicable Servicer
shall be entitled to reimbursement pursuant to Section 3.11 for Advances from
recoveries from the related Mortgagor or from all Liquidation Proceeds and other
payments or recoveries (including Insurance Proceeds and Condemnation Proceeds)
with respect to the related Mortgage Loan.
Section 4.02 Priorities of Distribution. (a) On each Distribution
Date, the Trustee shall make the disbursements and transfers from amounts then
on deposit in the Distribution Account in the following order of priority and to
the extent of the Available Funds remaining:
(i) from the Interest Remittance Amount, to the Supplemental
Interest Trust and to the holders of each Class of Principal Certificates
in the following order of priority:
(A) from the Interest Remittance Amount to the Supplemental
Interest Trust, the sum of (x) all Net Swap Payments and (y) any
Swap Termination Payment owed to the Swap Provider other than a
Defaulted Swap Termination Payment;
(B) from any remaining Interest Remittance Amount,
concurrently to the Class A-1, Class A-2 and Class A-3 Certificates,
the related Accrued Certificate Interest Distribution Amounts and
Unpaid Interest Amounts for the Class A-1, Class A-2 and Class A-3
Certificates), allocated pro rata (based on their respective
entitlements to those amounts);
(C) from any remaining Interest Remittance Amount, to the
Class M-1 Certificates, the Accrued Certificate Interest
Distribution Amount for such Class;
(D) from any remaining Interest Remittance Amount, to the
Class M-2 Certificates, the Accrued Certificate Interest
Distribution Amount for such Class;
(E) from any remaining Interest Remittance Amount, to the
Class M-3 Certificates, the Accrued Certificate Interest
Distribution Amount for such Class;
(F) from any remaining Interest Remittance Amount, to the
Class B-1 Certificates, the Accrued Certificate Interest
Distribution Amount for such Class;
(G) from any remaining Interest Remittance Amount, to the
Class B-2 Certificates, the Accrued Certificate Interest
Distribution Amount for such Class;
(H) from any remaining Interest Remittance Amount, to the
Class B-3 Certificates, the Accrued Certificate Interest
Distribution Amount for such Class; and
(I) from any remaining Interest Remittance Amount, to the
Class B-4 Certificates, the Accrued Certificate Interest
Distribution Amount for such Class;
(ii) (A) on each Distribution Date (a) prior to the Stepdown Date or
(b) with respect to which a Trigger Event is in effect, to the holders of
the Class or Classes of Offered Certificates then entitled to
distributions of principal as set forth below, from Available Funds
remaining after making distributions pursuant to clause (i) above, an
amount equal to the Principal Distribution Amount in the following order
of priority:
(a) sequentially:
(x) concurrently to the Class R-1 and Class R-2
Certificates, allocated pro rata, until their respective Class
Certificate Balances have been reduced to zero; and
(y) sequentially, to the Class A-1, Class A-2 and Class
A-3 Certificates, in that order, until their respective Class
Certificate Balances are reduced to zero;
(b) sequentially, to the Class M-1, Class M-2, Class M-3,
Class B-1, Class B-2, Class B-3 and Class B-4 Certificates, in that
order, until their respective Class Certificate Balances are reduced
to zero;
(B) on each Distribution Date (a) on and after the Stepdown
Date and (b) as long as Trigger Event is not in effect, to the
holders of the Class or Classes of Offered Certificates then
entitled to distribution of principal, from Available Funds
remaining on deposit in the Distribution Account after making
distributions pursuant to clause (i) above, an amount equal to the
Principal Distribution Amount in the following amounts and order of
priority:
(a) the lesser of (x) the Principal Distribution Amount and
(y) the Class A Principal Distribution Amount to the Class A
Certificates, allocated sequentially to the Class A-1, Class A-2 and
Class A-3 Certificates, in that order, until their respective Class
Certificate Balances are reduced to zero;
(b) the lesser of (x) the excess of (i) the Principal
Distribution Amount over (ii) the amount distributed to the Class A
Certificates in clause (ii)(B)(a) above and (y) the Class M-1
Principal Distribution Amount to the Class M-1 Certificates, until
the Class Certificate Balance thereof has been reduced to zero;
(c) the lesser of (x) the excess of (i) the Principal
Distribution Amount over (ii) the amount distributed to the Class A
Certificates in clause (ii)(B)(a) above and to the Class M-1
Certificates in clause (ii)(B)(b) above, and (y) the Class M-2
Principal Distribution Amount to the Class M-2 Certificates, until
the Class Certificate Balance thereof has been reduced to zero;
(d) the lesser of (x) the excess of (i) the Principal
Distribution Amount over (ii) the amount distributed to the Class A
Certificates in clause (ii)(B)(a) above, to the Class M-1
Certificates in clause (ii)(B)(b) above and to the Class M-2
Certificates in clause (ii)(B)(c) above, and (y) the Class M-3
Principal Distribution Amount to the Class M-3 Certificates, until
the Class Certificate Balance thereof has been reduced to zero;
(e) the lesser of (x) the excess of (i) the Principal
Distribution Amount over (ii) the amount distributed to the Class A
Certificates in clause (ii)(B)(a) above, to the Class M-1
Certificates in clause (ii)(B)(b) above, to the Class M-2
Certificates in clause (ii)(B)(c) above and to the Class M-3
Certificates in clause (ii)(B)(d) above, and (y) the Class B-1
Principal Distribution Amount to the Class B-1 Certificates, until
the Class Certificate Balance thereof has been reduced to zero;
(f) the lesser of (x) the excess of (i) the Principal
Distribution Amount over (ii) the amount distributed to the Class A
Certificates in clause (ii)(B)(a) above, to the Class M-1
Certificates in clause (ii)(B)(b) above, to the Class M-2
Certificates in clause (ii)(B)(c) above, to the Class M-3
Certificates in clause (ii)(B)(d) above and to the Class B-1
Certificates in clause (ii)(B)(e) above, and (y) the Class B-2
Principal Distribution Amount to the Class B-2 Certificates, until
the Class Certificate Balance thereof has been reduced to zero;
(g) the lesser of (x) the excess of (i) the Principal
Distribution Amount over (ii) the amount distributed to the Class A
Certificates in clause (ii)(B)(a) above, to the Class M-1
Certificates in clause (ii)(B)(b) above, to the Class M-2
Certificates in clause (ii)(B)(c) above, to the Class M-3
Certificates in clause (ii)(B)(d) above, to the Class B-1
Certificates in clause (ii)(B)(e) above and to the Class B-2
Certificates in clause (ii)(B)(f) above, and (y) the Class B-3
Principal Distribution Amount to the Class B-3 Certificates, until
the Class Certificate Balance thereof has been reduced to zero; and
(h) the lesser of (x) the excess of (i) the Principal
Distribution Amount over (ii) the amount distributed to the Class A
Certificates in clause (ii)(B)(a) above, to the Class M-1
Certificates in clause (ii)(B)(b) above, to the Class M-2
Certificates in clause (ii)(B)(c) above, to the Class M-3
Certificates in clause (ii)(B)(d) above, to the Class B-1
Certificates in clause (ii)(B)(e) above, to the Class B-2
Certificates in clause (ii)(B)(f) above and to the Class B-3
Certificates in clause (ii)(B)(g) above, and (y) the Class B-4
Principal Distribution Amount to the Class B-4 Certificates, until
the Class Certificate Balance thereof has been reduced to zero;
(iii) any amount remaining after the distributions in clauses
4.02(a)(i) and (ii) above shall be distributed in the following order of
priority:
(A) to the holders of the Class M-1 Certificates, any Unpaid
Interest Amount for such Class;
(B) to the holders of the Class M-2 Certificates, any Unpaid
Interest Amount for such Class;
(C) to the holders of the Class M-3 Certificates, any Unpaid
Interest Amount for such Class;
(D) to the holders of the Class B-1 Certificates, any Unpaid
Interest Amount for such Class;
(E) to the holders of the Class B-2 Certificates, any Unpaid
Interest Amount for such Class;
(F) to the holders of the Class B-3 Certificates, any Unpaid
Interest Amount for such Class;
(G) to the holders of the Class B-4 Certificates, any Unpaid
Interest Amount for such Class;
(H) to the Excess Reserve Fund Account, the amount of any
Basis Risk Payment (without regard to Net Swap Receipts) for such
Distribution Date;
(I) concurrently, from funds on deposit in the Excess Reserve
Fund Account, an amount equal to any Basis Risk Carry Forward Amount
with respect to the Principal Certificates for such Distribution
Date to such Classes in the same order and priority as set forth in
Section 4.02(a)(i);
(J) to the Supplemental Interest Trust, the amount of any
Defaulted Swap Termination Payment;
(K) to the Holders of the Class X Certificates, the remainder
of the Class X Distributable Amount not distributed pursuant to
Sections 4.02(a)(iii)(A)-(J);
(L) to the holders of the Class R-2 Certificates, any
remaining amount, in respect of Pooling-Tier REMIC-1; and
(M) to the Holders of the Class R-1 Certificates, any
remaining amount, in respect of Pooling-Tier REMIC 2, the Lower-Tier
REMIC and the Upper-Tier REMIC.
(b) On each Distribution Date, all amounts representing Prepayment
Premiums from the Mortgage Loans received during the related Prepayment Period
shall be distributed by the Trustee to the holders of the Class P Certificates.
(c) Notwithstanding the allocation of principal to the Class A
Certificates described in Section 4.02(b) above, from and after the Distribution
Date on which the aggregate Class Certificate Balances of the Class M-1, Class
M-2, Class M-3, Class B-1, Class B-2, Class B-3 and Class B-4 Certificates and
the principal balance of the Class X Certificates have been reduced to zero, any
principal distributions allocated to the Class A Certificates are required to be
allocated pro rata to the Class A Certificates based on their respective
Certificate Principal Balances.
(d) On any Distribution Date, any Relief Act Interest Shortfalls and
Net Prepayment Interest Shortfalls for such Distribution Date will be allocated
by the Trustee, pro rata, as a reduction of the Accrued Certificate Interest
Distribution Amount for the Class A, Class M and Class B Certificates, based on
the amount of interest to which such Classes would otherwise be entitled on such
Distribution Date.
Section 4.03 Monthly Statements to Certificateholders. (a) Not later
than each Distribution Date, the Trustee shall make available to each
Certificateholder, each Servicer, the Depositor and each Rating Agency a
statement setting forth with respect to the related distribution:
(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 Unpaid Interest
Amounts included in such distribution and any remaining Unpaid Interest
Amounts after giving effect to such distribution, any Basis Risk Carry
Forward Amount for such Distribution Date and the amount of all Basis Risk
Carry Forward Amounts covered by withdrawals from the Excess Reserve Fund
Account on such Distribution Date;
(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, including any Basis Risk Carry Forward Amount not covered by
amounts in the Excess Reserve Fund Account;
(iv) the Class Certificate Balance of each Class of Certificates
after giving effect to the distribution of principal on such Distribution
Date;
(v) the Pool Stated Principal Balance for the following Distribution
Date;
(vi) the amount of the Servicing Fees paid to or retained by the
Servicer or Subservicer (with respect to the Subservicers, in the
aggregate) with respect to such Distribution Date;
(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 reported by the
Servicer as outstanding as of the close of business on the Determination
Date immediately preceding such Distribution Date;
(ix) the number and aggregate outstanding principal balances of
Mortgage Loans (1) as to which the Scheduled Payment is delinquent 31 to
60 days, 61 to 90 days and 91 or more days, (2) that have become REO
Property, (3) that are in foreclosure and (4) that are in bankruptcy, in
each case as of the close of business on the last Business Day of the
immediately preceding month;
(x) for each of the preceding 12 calendar months, or all calendar
months since the related Cut-off Date, whichever is less, the aggregate
dollar amount of the Scheduled Payments (A) due on all Outstanding
Mortgage Loans on each of the Due Dates in each such month and (B)
delinquent 60 days or more on each of the Due Dates in each such month;
(xi) with respect to all Mortgage Loans that became REO Properties
during the preceding calendar month, the aggregate number of such Mortgage
Loans and the aggregate Stated Principal Balance of such Mortgage Loans as
of the close of business on the Determination Date preceding such
Distribution Date and the date of acquisition thereof;
(xii) the total number and principal balance of any REO Properties
(and market value, if available) as of the close of business on the
Determination Date preceding such Distribution Date;
(xiii) whether a Trigger Event has occurred and is continuing
(including the calculation of thereof and the aggregate outstanding
balance of all 60+ Day Delinquent Mortgage Loans);
(xiv) the amount of any Basis Risk Carry Forward Amounts paid from
the Excess Reserve Fund Account or the Supplemental Interest Trust and the
amount of any Upper-Tier Carry Forward Amounts paid from the Supplemental
Interest Trust;
(xv) in the aggregate and for each Class of Certificates, the
aggregate amount of Applied Realized Loss Amounts incurred during the
preceding calendar month and aggregate Applied Realized Loss Amounts
through such Distribution Date;
(xvi) the amount of any Net Monthly Excess Cash Flow on such
Distribution Date and the allocation thereof to the Certificateholders
with respect to Applied Realized Loss Amounts and Unpaid Interest Amounts;
(xvii) the Overcollateralized Amount and Specified
Overcollateralized Amount;
(xviii) the amount distributed on the Class P Certificates;
(xix) the Cumulative Loss Percentage;
(xx) the amount distributed on the Class X Certificates;
(xxi) the amount of any Subsequent Recoveries for such Distribution
Date;
(xxii) the amount of any Net Swap Payments, Net Swap Receipts, Swap
Termination Payments or Defaulted Swap Termination Payments; and
(xxiii) the calculations of LIBOR and Swap LIBOR.
(b) The Trustee's responsibility for providing the above statement
to the Certificateholders, each Rating Agency, each Servicer and the Depositor
is limited to the availability, timeliness and accuracy of the information
derived from the applicable Servicer. The Trustee will provide the above
statement via the Trustee's internet website. The Trustee's website will
initially be located at xxxxx://xxx.xxx.xx.xxx/xxxx and assistance in using the
website can be obtained by calling the Trustee's investor relations desk at
0-000-000-0000. A paper copy of the above statement will also be made available
upon request.
(c) Upon request, within a reasonable period of time after the end
of each calendar year, the Trustee shall cause to be furnished 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) and (a)(ii) of this
Section 4.03 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.
(d) Not later than the Reporting Date, each Servicer shall furnish
to the Trustee and a monthly remittance advice statement (in a format mutually
agreed upon by such Servicer and the Trustee) containing such information as
shall be reasonably requested by the Trustee to provide the reports required by
Section 4.03(a) as to the accompanying remittance and the period ending on the
close of business on the last Business Day of the immediately preceding month
(the "Servicer Remittance Report").
Each Servicer shall furnish to the Trustee an individual loan
accounting report, as of the last Business Day of each month, to document
Mortgage Loan payment activity on an individual Mortgage Loan basis. With
respect to each month, the corresponding individual loan accounting report (in
electronic format) shall be received by the Trustee no later than the Reporting
Date, which report shall contain the following:
(i) with respect to each Scheduled Payment, the amount of such
remittance allocable to principal (including a separate breakdown of any
Principal Prepayment, including the date of such prepayment, and any
Prepayment Premiums, along with a detailed report of interest on principal
prepayment amounts remitted in accordance with Section 3.25);
(ii) with respect to each Scheduled Payment, the amount of such
remittance allocable to interest;
(iii) the amount of servicing compensation received by such Servicer
during the prior distribution period;
(iv) the individual and aggregate Stated Principal Balance of the
Mortgage Loans;
(v) the aggregate of any expenses reimbursed to such Servicer during
the prior distribution period pursuant to Section 3.11;
(vi) the number and aggregate outstanding principal balances of
Mortgage Loans (a) delinquent (1) 31 to 60 days, (2) 61 to 90 days, or (3)
91 days or more; (b) as to which foreclosure has commenced; and (c) as to
which REO Property has been acquired;
(vii) each Mortgage Loan which has been altered, modified or varied
during such month, and the reason for such modification (i.e., extension
of maturity date, Mortgage Interest Rate);
(viii) with respect to each Liquidated Mortgage Loan, the amount of
any Realized Losses for such Mortgage Loan; and
(ix) any other information reasonably required by the Trustee to
enable it to prepare the monthly statement referred to in Section 4.03(a).
(e) On the 5th Business Day of each month (the "Data File Delivery
Date"), Countrywide shall deliver to the Trustee and (subject to the terms of
that certain confidentiality agreement, dated as of the Closing Date, among the
Depositor, the Purchaser and Countrywide) to the Depositor a Market Value Change
Report and a data file incorporating the fields set forth in the data file
layout set forth in Exhibit L hereto (the "Data File").
Section 4.04 Certain Matters Relating to the Determination of LIBOR.
LIBOR shall be calculated by the Trustee in accordance with the definition of
"LIBOR." Until all of the LIBOR Certificates are paid in full, the Trustee will
at all times retain at least four Reference Banks for the purpose of determining
LIBOR with respect to each LIBOR Determination Date. The Trustee initially shall
designate the Reference Banks (after consultation with the Depositor). Each
"Reference Bank" shall be a leading bank engaged in transactions in Eurodollar
deposits in the international Eurocurrency market, shall not control, be
controlled by, or be under common control with, the Trustee and shall have an
established place of business in London. If any such Reference Bank should be
unwilling or unable to act as such or if the Trustee should terminate its
appointment as Reference Bank, the Trustee shall promptly appoint or cause to be
appointed another Reference Bank (after consultation with the Depositor). The
Trustee shall have no liability or responsibility to any Person for (i) the
selection of any Reference Bank for purposes of determining LIBOR or (ii) any
inability to retain at least four Reference Banks which is caused by
circumstances beyond its reasonable control.
The Pass-Through Rate for each Class of LIBOR Certificates for each
Interest Accrual Period shall be determined by the Trustee on each LIBOR
Determination Date so long as the LIBOR Certificates are outstanding on the
basis of LIBOR and the respective formulae appearing in footnotes corresponding
to the LIBOR Certificates in the table relating to the Certificates in the
Preliminary Statement. The Trustee shall not have any liability or
responsibility to any Person for its inability, following a good-faith
reasonable effort, to obtain quotations from the Reference Banks or to determine
the arithmetic mean referred to in the definition of LIBOR, all as provided for
in this Section 4.04 and the definition of LIBOR. The establishment of LIBOR and
each Pass-Through Rate for the LIBOR Certificates by the Trustee shall (in the
absence of manifest error) be final, conclusive and binding upon each Holder of
a Certificate and the Trustee.
Section 4.05 Allocation of Applied Realized Loss Amounts. Any
Applied Realized Loss Amounts shall be allocated by the Trustee to the most
junior Class of Subordinated Certificates then outstanding in reduction of the
Class Certificate Balance thereof. In the event Applied Realized Loss Amounts
are allocated to any Class of Principal Certificates, their Class Principal
Balances shall be reduced by the amount so allocated, and no funds will be
distributable with respect to the written down amounts (including without
limitation Basis Risk Carry Forward Amounts) or with respect to interest on the
written down amounts on that Distribution Date or any future Distribution Dates,
even if funds are otherwise available for distribution. Notwithstanding the
foregoing, the Class Certificate Balance of each Class of Subordinated
Certificates that has been previously reduced by Applied Realized Loss Amounts
will be increased, in order of seniority, by the amount of the Subsequent
Recoveries (but not in excess of the Applied Realized Loss Amount allocated to
the applicable Class of Subordinated Certificates).
Section 4.06 Supplemental Interest Trust. On the Closing Date, the
Trustee shall establish and maintain in its name, a separate non-interest
bearing trust account for the benefit of the holders of the Principal
Certificates (the "Supplemental Interest Trust") as a part of the Trust Fund.
The Supplemental Interest Trust shall be an Eligible Account, and funds on
deposit therein shall be held separate and apart from, and shall not be
commingled with, any other moneys, including, without limitation, other moneys
of the Trustee held pursuant to this Agreement.
On any Distribution Date, Swap Termination Payments, Net Swap
Payments owed to the Swap Provider and Net Swap Receipts for that Distribution
Date will be deposited into the Supplemental Interest Trust. Funds in the
Supplemental Interest Trust will be distributed in the following order of
priority:
(i) to the Swap Provider, the sum of (x) all Net Swap Payments and
(y) any Swap Termination Payment, other than a Defaulted Swap Termination
Payment, to the Swap Provider, if any, owed for that Distribution Date;
(ii) to the Principal Certificateholders, to pay Accrued Certificate
Interest Distribution Amounts and, if applicable, any Unpaid Interest
Amounts as described in Section 4.02(a)(i), to the extent unpaid from
other Available Funds;
(iii) to the Principal Certificateholders, to pay principal as
described in Section 4.02(a)(ii), but only to the extent necessary to
maintain the Overcollateralized Amount at the Specified Overcollateralized
Amount, after giving effect to payments and distributions from other
Available Funds;
(iv) to the Principal Certificateholders, to pay Unpaid Interest
Amounts and Basis Risk Carry Forward Amounts as described in Section
4.02(a)(iii), to the extent unpaid from other Available Funds (including
funds on deposit in the Excess Reserve Fund Account);
(v) to the Swap Provider, any Defaulted Swap Termination Payment for
that Distribution Date; and
(vi) to the holders of the Class X Certificates, any remaining
amounts.
Upon termination of the Trust, any amounts remaining in the
Supplemental Interest Trust shall be distributed pursuant to the priorities set
forth in this Section 4.06.
The Trustee shall account for the Supplemental Interest Trust as an
asset of a grantor trust under subpart E, Part I of subchapter J of the Code and
not as an asset of any Trust REMIC created pursuant to this Agreement. The
beneficial owners of the Supplemental Interest Trust are the Class X
Certificateholders. For federal income tax purposes, Net Swap Payments and Swap
Termination Payments payable to the Swap Provider shall be deemed to be paid to
the Supplemental Interest Trust from the Upper-Tier REMIC, first, by the Holder
of the Class X Certificates (in respect of the Class IO Interest and, if
applicable, Class X Interest) and second, other than any Defaulted Swap
Termination Payment, by the Holders of the applicable Class or Classes of
Principal Certificates (in respect of Class IO Shortfalls) as and to the extent
provided in Section 8.15.
Any Basis Risk Carry Forward Amounts distributed by the Trustee to
the Principal Certificateholders shall be accounted for by the Trustee, for
federal income tax purposes, as amounts paid first to the Holders of the Class X
Certificates in respect of the Class X Interest and then to the respective Class
or Classes of Principal Certificates. In addition, the Trustee shall account for
the rights of Holders of each Class of Principal Certificates to receive
payments of Basis Risk Carry Forward Amounts and Upper-Tier Carry Forward
Amounts from the Supplemental Interest Trust (along with Basis Risk Carry
Forward Amounts payable from the Excess Reserve Fund Account) as rights in a
separate limited recourse interest rate cap contract written by the Class X
Certificateholders in favor of Holders of each such Class.
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.
The Depositor hereby directs the Trustee to register the Class X and
Class P Certificates in the name of the Depositor or its designee. On a date as
to which the Depositor notifies the Trustee, the Depositor hereby directs the
Trustee to transfer the Class X and Class P Certificates in the name of the NIM
Trustee, or such other name or names as the Depositor shall request, and to
deliver the Class X and Class P Certificates to Deutsche Bank National Trust
Company, as NIM Trustee, or to such other Person or Persons as the Depositor
shall request.
Subject to Section 9.02 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 as directed by that
Certificateholder by written wire instructions provided to the Trustee or (y),
in the event that no wire instructions are provided to the Trustee, 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 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 authentication and delivery of any 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 authenticated by the Trustee by manual signature, and
such authentication 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 authentication. On
the Closing Date, the Trustee shall authenticate the Certificates to be issued
at the direction of the Depositor, or any affiliate thereof.
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, 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. In the event, the
Depositor or an Affiliate of the Depositor transfers the Class X Certificates,
or a portion thereof, to another Affiliate, it shall notify the Trustee in
writing of the affiliated status of the transferee. The Trustee shall have no
liability regarding the lack of notice with respect thereto.
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 cancelled 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. Except
with respect to (i) the transfer of the Class X, Class P or Class R
Certificates, to the Depositor or an Affiliate of the Depositor, (ii) the
transfer of the Class X or Class P Certificates to the NIM Issuer or the NIM
Trustee, or (iii) a transfer of the Class X or Class P Certificates from the NIM
Issuer or the NIM Trustee to the Depositor or an Affiliate of the Depositor, in
the event that a transfer of a Private Certificate which is a Physical
Certificate 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 shall certify to
the Trustee in writing the facts surrounding the transfer in substantially the
form set forth in Exhibit H (the "Transferor Certificate") and either (i) there
shall be delivered to the Trustee a letter in substantially the form of Exhibit
I (the "Rule 144A Letter") or (ii) in the case of the Class X Certificates,
there shall be delivered to the Trustee at the expense of the transferor an
Opinion of Counsel that such transfer may be made without registration under the
Securities Act. In the event that a transfer of a Private Certificate which is a
Book-Entry Certificate 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 will
be deemed to have made as of the transfer date each of the certifications set
forth in the Transferor Certificate in respect of such Certificate and the
transferee will be deemed to have made as of the transfer date each of the
certifications set forth in the Rule 144A Letter in respect of such Certificate,
in each case as if such Certificate were evidenced by a Physical Certificate.
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 each Servicer shall cooperate with the Depositor in
providing the Rule 144A information referenced in the preceding sentence,
including providing to the Depositor 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 and the
Depositor and the Servicers 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.
Except with respect to (i) the transfer of the Class R, Class X or
Class P Certificates to the Depositor or an affiliate of the Depositor, (ii) the
transfer of the Class X or Class P Certificates to the NIM Issuer or the NIM
Trustee, or (iii) a transfer of the Class X or Class P Certificates from the NIM
Issuer or the NIM Trustee to the Depositor or an Affiliate of the Depositor, no
transfer of an ERISA-Restricted Certificate shall be made 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 or a Residual
Certificate, such requirement is satisfied only by the Trustee's receipt of a
representation letter from the transferee substantially in the form of Exhibit
I), to the effect that such transferee is not an employee benefit plan or
arrangement subject to Section 406 of ERISA, 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, nor a
person acting on behalf of any such plan or arrangement nor using the assets of
any such plan or arrangement (collectively, a "Plan") to effect such transfer,
(ii) in the case of an ERISA-Restricted Certificate other than a Residual
Certificate or a Class P Certificate that has been the subject of an
ERISA-Qualifying Underwriting and the purchaser is an insurance company, a
representation that the purchaser is 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 Sections I and III of PTCE 95-60 or (iii) in the
case of any such ERISA-Restricted Certificate other than a Residual Certificate
or a Class P Certificate presented for registration in the name of a Plan, an
Opinion of Counsel satisfactory to the Trustee, which Opinion of Counsel shall
not be an expense of the Trustee, the Depositor, the Servicers or the Trust
Fund, addressed to the Trustee, to the effect that the purchase or holding of
such ERISA-Restricted Certificate will not constitute or result in a non-exempt
prohibited transaction within the meaning of ERISA, Section 4975 of the Code or
any Similar Law and will not subject the Trustee, the Depositor or the Servicers
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 or a Residual
Certificate, in the event the representation letter referred to in the preceding
sentence is not 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 Class P Certificate or 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 Class P Certificate or Residual Certificate to a transferee that does not make
the representation in clause (i) above shall be void and of no effect.
The Class R and Class P Certificates may not be sold to any employee
benefit plan subject to Title I of ERISA, any plan subject to Section 4975 of
the Code, or any plan subject to any Similar Law or any person investing on
behalf of or with plan assets of such Plan.
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.
As long as the Interest Rate Swap Agreement is in effect, each
beneficial owner of a Certificate, or any interest therein, shall be deemed to
have represented that either (i) it is not a Plan or (ii) the acquisition and
holding of the Certificate are eligible for the exemptive relief available under
at least one of the Investor-Based Exemptions.
(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 in the form attached hereto as Exhibit G;
(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 the Rule 144A 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; and
(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.
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 Depositor, the
Trustee, or any Servicer, to the effect that the elimination of such
restrictions will not cause any Trust REMIC 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 or able to properly discharge
its responsibilities as Depository, and (ii) the Trustee or the Depositor is
unable to locate a qualified successor, or (y) the Depositor notifies the
Depository of its intent to terminate the book-entry system through the
Depository and, upon receipt of notice of such intent from the Depository, the
Depository Participants holding beneficial interests in the Book-Entry
Certificates agree to initiate such termination, 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. None of the Servicers, the
Depositor or 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.
(f) Each Private Certificate presented or surrendered for
registration of transfer or exchange shall be accompanied by a written
instrument of transfer and accompanied by IRS Form W-8ECI, W-8BEN, W-8IMY (and
all appropriate attachments) or W-9 in form satisfactory to the Trustee and the
Certificate Registrar, duly executed by the Certificateholder or his attorney
duly authorized in writing. Each Certificate presented or surrendered for
registration of transfer or exchange shall be cancelled and subsequently
disposed of by the Certificate Registrar in accordance with its customary
practice. No service charge shall be made for any registration of transfer or
exchange of Private Certificates, but the Trustee or the Certificate Registrar
may require payment of a sum sufficient to cover any tax or governmental charge
that may be imposed in connection with any transfer or exchange of Private
Certificates.
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 Depositor, the Servicers, and the
Trustee such security or indemnity as may be required by them to hold 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, authenticate 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 Servicers, the Trustee, the
Depositor, and any agent of a Servicer, the Depositor 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 none of the Servicers, the
Trustee, the Depositor or any agent of a Servicer, the Depositor 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 a 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, such 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. The Trustee will
maintain or cause to be maintained at its expense an office or offices or agency
or agencies in New York City where Certificates may be surrendered for
registration of transfer or exchange. The Trustee initially designates the
offices of its agent for such purposes, located at DTC Transfer Agent Services,
00 Xxxxx Xxxxxx, Xxxxxxxx Xxxx Xxxxxxxx, Xxx Xxxx, Xxx Xxxx 00000. 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 SERVICERS
Section 6.01 Respective Liabilities of the Depositor and the
Servicers. The Depositor and each of the Servicers 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 a Servicer.
The Depositor and each of the Servicers will each keep in full effect its
existence, rights and franchises as a national banking association or a 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 limited partnership, as
applicable, 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 a Servicer may be merged or
consolidated, or any Person resulting from any merger or consolidation to which
the Depositor or a Servicer shall be a party, or any person succeeding to the
business of the Depositor or the Servicer, shall be the successor of the
Depositor or such 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 such Servicer shall be qualified to sell
mortgage loans to, and to service mortgage loans on behalf of, Xxxxxx Mae or
Xxxxxxx Mac, and meets the requirements of Section 7.02, and provided, further,
that such merger, consolidation or succession does not adversely affect the then
current rating or ratings on the Offered Certificates.
Section 6.03 Limitation on Liability of the Depositor, the Servicers
and Others. Neither the Depositor, the Servicers nor any of their respective
directors, officers, employees or agents shall be under any liability to the
Certificateholders 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
Servicers or any such Person against any breach of representations or warranties
made by it herein or protect the Depositor, the Servicers or any such Person
from any liability which would otherwise be imposed by reasons of willful
misfeasance, bad faith or negligence (or gross negligence in the case of the
Depositor) in the performance of duties or by reason of reckless disregard of
obligations and duties hereunder. The Depositor, each Servicer and any director,
officer, employee or agent of the Depositor and each 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, each
Servicer and any director, officer, employee, Affiliate or agent of the
Depositor and each Servicer shall be indemnified by the Trust Fund and held
harmless against any loss, liability or expense incurred in connection with any
audit, controversy or judicial proceeding relating to a governmental taxing
authority or any legal action relating to this Agreement or the Certificates or
any other unanticipated or extraordinary expense, other than any loss, liability
or expense incurred by reason of willful misfeasance, bad faith or negligence
(or gross negligence in the case of the Depositor) in the performance of duties
hereunder or by reason of reckless disregard of obligations and duties
hereunder. Neither the Depositor nor any 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 each of the Depositor and each
Servicer may in its discretion undertake any such action (or direct the Trustee
to undertake such actions pursuant to Section 2.03 for the benefit of the
Certificateholders) 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, and the
applicable Servicer shall be entitled to be reimbursed therefor out of the
related Collection Account.
Section 6.04 Limitation on Resignation of a Servicer. (a) None of
the Servicers shall assign this Agreement or resign from the obligations and
duties hereby imposed on it except (i) by mutual consent of such Servicer, the
Depositor and the Trustee or (ii) upon the determination that its duties
hereunder are no longer permissible under applicable law and such incapacity
cannot be cured by such Servicer. Any such determination permitting the
resignation of a Servicer under clause (ii) above shall be evidenced by an
Opinion of Counsel to such effect delivered to the Depositor and the Trustee
which Opinion of Counsel shall be in form and substance acceptable to the
Depositor and the Trustee. No such resignation shall become effective until a
successor shall have assumed such Servicer's responsibilities and obligations
hereunder.
Section 6.05 Additional Indemnification by the Servicers; Third
Party Claims. Each Servicer shall indemnify the Depositor and any Affiliate,
director, officer, employee or agent of the Depositor and the Trustee and hold
each of them harmless against any and all claims, losses, damages, penalties,
fines, forfeitures, reasonable and necessary legal fees and related costs,
judgments, and any other costs, fees and expenses that any of them may sustain
in any way related to any breach by such Servicer of (i) any of its
representations and warranties referred to in Section 2.03(a), (ii) any error in
any tax or information return prepared by such Servicer, or (iii) the failure of
such Servicer to perform its duties and service the Mortgage Loans in compliance
with the terms of this Agreement. The applicable Servicer immediately shall
notify the Depositor and the Trustee if such claim is made by a third party with
respect to this Agreement or the Mortgage Loans, assume (with the prior written
consent of the Depositor and the Trustee) the defense of any such claim and pay
all expenses in connection therewith, including reasonable counsel fees, and
promptly pay, discharge and satisfy any judgment or decree which may be entered
against it or the Depositor, or the Trustee in respect of such claim.
ARTICLE VII
DEFAULT
Section 7.01 Events of Default. "Event of Default," wherever used
herein, means any one of the following events:
(a) any failure by a Servicer to remit to the Trustee any payment
required to be made under the terms of this Agreement which continues unremedied
for a period of one Business Day after the date upon which written notice of
such failure, requiring the same to be remedied, shall have been given to such
Servicer by the Depositor, or by the Trustee, or to the Servicers, the Depositor
and the Trustee by Certificateholders entitled to at least 25% of the Voting
Rights; or
(b) the failure on the part of a Servicer duly to observe or perform
in any material respect any other of the covenants or agreements on the part of
such Servicer set forth in this Agreement, which continues unremedied for a
period of thirty days (except that such number of days shall be ten days in the
case of a failure to observe or perform any of the obligations set forth in
Sections 3.22, 3.23 or 8.12) after the earlier of (i) the date on which written
notice of such failure, requiring the same to be remedied, shall have been given
to such Servicer by the Depositor or by the Trustee, or to the Servicers, the
Depositor and the Trustee by Certificateholders of Certificates entitled to at
least 25% of the Voting Rights and (ii) actual knowledge of such failure by a
Servicing Officer of the Servicer; provided, however, that in the case of a
failure or breach that cannot be cured within 30 days after notice or actual
knowledge by such Servicer, the cure period may be extended for an additional 30
days upon delivery by such Servicer to the Trustee of a certificate to the
effect that such Servicer believes in good faith that the failure or breach can
be cured within such additional time period and such Servicer is diligently
pursuing remedial action; or
(c) (1) with respect to Countrywide only, the failure by Countrywide
in any month, (i) to deliver to the Trustee and the Depositor the Data File and
the Market Value Change Report on the Data File Delivery Date or (ii) to deliver
the Servicer Remittance Report to the Trustee, and in each case such failure
continues uncured for more than 30 days after written notice of such failure, or
(2) with respect to JPMorgan only, the failure by JPMorgan in any month to
deliver the Servicer Remittance Report to the Trustee, and such failure
continues uncured for more than 30 days after the date upon which written notice
of such failure, requiring the same to be remedied, shall have been given to
JPMorgan by the Depositor, or by the Trustee, or to JPMorgan, the Depositor and
the Trustee by Certificateholders entitled to at least 25% of the Voting Rights;
or
(d) a decree or order of a court or agency or supervisory authority
having jurisdiction for the appointment of a conservator or receiver or
liquidator in any insolvency, bankruptcy, readjustment of debt, marshalling of
assets and liabilities or similar proceedings, or for the winding-up or
liquidation of its affairs, shall have been entered against a Servicer and such
decree or order shall have remained in force undischarged or unstayed for a
period of sixty days; or
(e) a Servicer shall consent to the appointment of a conservator or
receiver or liquidator in any insolvency, bankruptcy, readjustment of debt,
marshalling of assets and liabilities or similar proceedings of or relating to
the Servicer or of or relating to all or substantially all of its property; or
(f) a Servicer shall admit in writing its inability to pay its debts
generally as they become due, file a petition to take advantage of any
applicable insolvency or reorganization statute, make an assignment for the
benefit of its creditors, or voluntarily suspend payment of its obligations; or
(g) [reserved]; or
(h) any failure of a Servicer to make any P&I Advance on any
Remittance Date required to be made from its own funds pursuant to Section 4.01
which continues unremedied for one Business Day immediately following the
Remittance Date; or
(i) [reserved]; or
(j) a breach of any representation and warranty of a Servicer
referred to in Section 2.03(a), which materially and adversely affects the
interests of the Certificateholders and which continues unremedied for a period
of thirty days after the date upon which written notice of such breach is given
to such Servicer by the Trustee or by the Depositor, or to the Servicers, the
Trustee and the Depositor by Certificateholders entitled to at least 25% of the
Voting Rights in the Certificates; or
(k) with respect to JPMorgan and Countrywide, any reduction,
withdrawal or qualification of the servicer rating of JPMorgan or Countrywide by
any rating agency which results in the inability of JPMorgan or Countrywide to
act as a primary or special servicer for any mortgage-backed or asset-backed
transaction rated or to be rated by any rating agency.
If an Event of Default described in clauses (a) through (k) of this
Section 7.01 shall occur, then, and in each and every such case, so long as such
Event of Default shall not have been remedied, the Trustee may, or at the
direction of Certificateholders entitled to a majority of the Voting Rights the
Trustee shall, by notice in writing to the applicable Servicer (with a copy to
each Rating Agency), terminate all of the rights and obligations of such
Servicer under this Agreement and in and to the Mortgage Loans serviced by such
Servicer and the proceeds thereof, other than its rights as a Certificateholder
hereunder; provided, however, that the Trustee shall not be required to give
written notice to such Servicer of the occurrence of an Event of Default
described in clauses (b) through (h), (j) and (k) of this Section 7.01 unless
and until a Responsible Officer of the Trustee has actual knowledge of the
occurrence of such an Event of Default. In the event that a Responsible Officer
of the Trustee has actual knowledge of the occurrence of an Event of Default
described in clause (a) of this Section 7.01, the Trustee shall give written
notice to the applicable Servicer of the occurrence of such an event within one
Business Day of the first day on which such Responsible Officer obtains actual
knowledge of such occurrence; provided that failure to give such notice shall
not constitute a waiver of such Event of Default. The Trustee, upon a
Responsible Officer having actual knowledge of such default, shall deliver a
written notice to the applicable Servicer of the default on any Remittance Date
on which a Servicer fails to make any deposit or payment required pursuant to
this Agreement (including, but not limited to Advances, to the extent required
by this Agreement); provided, however, that if an Event of Default occurs due to
the failure of a Servicer to make an Advance to the extent required, the
Trustee, as successor Servicer, or another successor Servicer shall, prior to
the next Distribution Date, immediately make such Advance. Any such notice to a
Servicer shall also be given to each Rating Agency and the Depositor.
Notwithstanding any other provision of this Agreement, any remedy with respect
to clauses (a) or (h) of this Section 7.01 shall be effective only if taken no
later than 8:00 AM Eastern time on the Business Day immediately following (i)
with respect to clause (a) of this Section 7.01, the date of written notice to
the applicable Servicer, or (ii) with respect to clause (h) of this Section
7.01, the related Remittance Date. On and after the receipt by such Servicer of
such written notice, all authority and power of such Servicer hereunder, whether
with respect to the Mortgage Loans or otherwise, shall pass to and be vested in
the Trustee. The Trustee is hereby authorized and empowered to execute and
deliver, on behalf of such 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. Unless expressly
provided in such written notice, no such termination shall affect any obligation
of such Servicer to pay amounts owed pursuant to Article VIII. Such Servicer
agrees to cooperate with the Trustee in effecting the termination of such
Servicer's responsibilities and rights hereunder, including, without limitation,
the transfer to the Trustee of all cash amounts which shall at the time be
credited to the related Collection Account of such predecessor Servicer, or
thereafter be received with respect to the Mortgage Loans.
Notwithstanding any termination of the activities of a Servicer
hereunder, such Servicer shall be entitled to receive from the Trust Fund, prior
to transfer of its servicing obligations hereunder, payment of all accrued and
unpaid portion of the Servicing Fees to which such Servicer would have been
entitled and to continue to receive reimbursement for all outstanding P&I
Advances and Servicing Advances, including Servicing Advances incurred prior to
but not invoiced until after the date of termination, in accordance with the
terms of this Agreement. In addition, each Servicer shall continue to be
entitled to the benefits of Section 6.03, notwithstanding any termination
hereunder, with respect to events occurring prior to such termination.
Section 7.02 Trustee to Act; Appointment of Successor. On and after
the time the Trustee gives, and a Servicer receives a notice of termination
pursuant to Section 7.01, the Trustee shall, subject to and to the extent
provided in Sections 3.06 and 7.03, and subject to the rights of the Trustee to
appoint a successor Servicer, be the successor to such Servicer in its capacity
as servicer under this Agreement and the transactions set forth or provided for
herein and shall immediately assume all of the obligations of such Servicer to
make P&I Advances and Servicing Advances as successor Servicer and shall assume
and be subject to all the other responsibilities, duties and liabilities
relating thereto placed on such Servicer by the terms and provisions hereof and
applicable law as soon as practicable but in no event later than 90 days after
the receipt by such Servicer of the notice of termination pursuant to Section
7.01. As compensation therefor, the Trustee shall be entitled to all funds
relating to the Mortgage Loans that such Servicer would have been entitled to
charge to its Collection Account if such Servicer had continued to act hereunder
including, if such Servicer was receiving the Servicing Fee, the Servicing Fee
and the income on investments or gain related to its Collection Account (in
addition to income on investments or gain related to the Distribution Account
for the benefit of the Trustee as provided herein). Notwithstanding the
foregoing, if the Trustee has become the successor to a Servicer in accordance
with this Section 7.02, the Trustee may, if it shall be unwilling to so act, or
shall, if it is prohibited by applicable law from making P&I Advances and
Servicing Advances pursuant to Section 4.01 or if it is otherwise unable to so
act, or, at the written request of Certificateholders entitled to a majority of
the Voting Rights, 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 such Servicer hereunder in the
assumption of all or any part of the responsibilities, duties or liabilities of
such Servicer hereunder. No such appointment of a successor to a Servicer
hereunder shall be effective until the Depositor shall have consented thereto.
Any successor to such Servicer shall be an institution which is a Xxxxxx Xxx-
and Xxxxxxx Mac-approved seller/servicer in good standing, which has a net worth
of at least $30,000,000, which is willing to service the Mortgage Loans and
which executes and delivers to the Depositor and the Trustee an agreement
accepting such delegation and assignment, containing an assumption by such
Person of the rights, powers, duties, responsibilities, obligations and
liabilities of such terminated Servicer (other than liabilities of such
terminated Servicer under Section 6.03 incurred prior to termination of such
Servicer under Section 7.01), with like effect as if originally named as a party
to this Agreement; provided, 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, as a result of such assignment and
delegation. Pending appointment of a successor to a Servicer hereunder, the
Trustee, unless the Trustee is prohibited by law from so acting, shall, subject
to Section 3.05, 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 out of payments on Mortgage Loans as it, the
Depositor and such successor shall agree; provided, however, that no such
compensation shall be in excess of the Servicing Fee and amounts paid to the
predecessor Servicer from investments. The Trustee and such successor shall take
such action, consistent with this Agreement, as shall be necessary to effectuate
any such succession. Neither the Trustee nor any other successor 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 predecessor Servicer to
deliver or provide, or any delay in delivering or providing, any cash,
information, documents or records to it.
In the event that a Servicer is terminated pursuant to Section 7.01,
such terminated Servicer shall provide notices to the Mortgagors, transfer the
Servicing Files to a successor Servicer and pay all of its own out-of-pocket
costs and expenses related to such obligations. In addition, all Servicing
Transfer Costs incurred by parties other than the terminated Servicer shall be
paid by the terminated Servicer promptly upon presentation of reasonable
documentation of such costs. If such predecessor Servicer defaults in its
obligations to pay such costs, such costs shall be paid by the successor
Servicer (in which case the successor Servicer shall be entitled to
reimbursement therefor from the Trust Fund or if the successor Servicer fails to
pay, the Trustee pays such amounts from the Trust Fund.). If the Trustee is the
predecessor Servicer (except in the case where the Trustee in its role as
successor Servicer is being terminated pursuant to Section 7.01 by reason of an
Event of Default caused solely by the Trustee as the successor Servicer and not
by the predecessor Servicer's actions or omissions), such costs shall be paid by
the prior terminated Servicer promptly upon presentation of reasonable
documentation of such costs.
Any successor to a Servicer as servicer shall give notice to the
Mortgagors of such change of Servicer, in accordance with applicable federal and
state law, and shall, during the term of its service as Servicer, maintain in
force the policy or policies that each Servicer is required to maintain pursuant
to Section 3.13.
Any such successor Servicer shall be required to satisfy the
requirements of a successor Servicer under this Section 7.02.
Section 7.03 Notification to Certificateholders. (a) Upon any
termination of or appointment of a successor to a 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 Event of Default, the
Trustee shall transmit by mail to all Certificateholders, and each Rating Agency
notice of each such Event of Default hereunder known to the Trustee, unless such
Event of Default shall have been cured or waived.
ARTICLE VIII
CONCERNING THE TRUSTEE
Section 8.01 Duties of the Trustee. The Trustee, before the
occurrence of an Event of Default and after the curing of all Events of Default
that may have occurred, shall undertake to perform such duties and only such
duties as are specifically set forth in this Agreement. In case an Event of
Default has occurred and remains uncured, 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. The Trustee shall not be responsible for
the accuracy or content of any resolution, certificate, statement, opinion,
report, document, order, or other 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 bad faith or willful misfeasance.
Unless an Event of Default known to the Trustee has occurred and
is continuing,
(a) 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 the duties and obligations 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;
(b) 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 is finally proven that the Trustee was negligent in ascertaining the
pertinent facts; and
(c) 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 the Holders of Certificates evidencing not less than 25% of the
Voting Rights relating to the time, method, and place of conducting any
proceeding for any remedy available to the Trustee, or exercising any trust or
power conferred upon the Trustee under this Agreement.
Section 8.02 Certain Matters Affecting the Custodian and the
Trustee. Except as otherwise provided in Section 8.01:
(a) the Custodian and the Trustee may request and rely upon and
shall be protected in acting or refraining from acting upon any resolution,
Officer's 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 neither the
Custodian nor the Trustee shall have any responsibility to ascertain or confirm
the genuineness of any signature of any such party or parties;
(b) the Custodian and the Trustee may consult with counsel,
financial advisers or accountants and the advice of any such counsel, financial
advisers or accountants and any 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 Opinion of
Counsel;
(c) neither the Custodian nor the Trustee shall 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, nor shall either the Trustee or the Custodian be liable for acts
or omissions of the other;
(d) 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 to do so by Holders of
Certificates evidencing not less than 25% of the Voting Rights allocated to each
Class of Certificates;
(e) the Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents,
accountants or attorneys and the Trustee shall not be responsible for any
misconduct or negligence on the part of any agents, accountants or attorneys
appointed with due care by it hereunder; provided that the Trustee shall not be
responsible for any act or omission of the Custodian;
(f) neither the Custodian nor the Trustee shall 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;
(g) 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 and except with respect to the investment of funds in the Distribution
Account not made at the direction of the Depositor during the Trustee Float
Period);
(h) the Trustee shall not be deemed to have knowledge of an Event of
Default until a Responsible Officer of the Trustee shall have received written
notice thereof except as otherwise provided in Section 7.01; and
(i) 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 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.
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 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
authentication of the Certificates. The Trustee shall not be accountable for the
use or application by the Depositor or the Servicers of any funds paid to the
Depositor or the Servicers in respect of the Mortgage Loans or deposited in or
withdrawn from the Collection Account by the Depositor or the Servicers.
The Trustee shall have no responsibility for filing or recording any
financing or continuation statement in any public office at any time or to
otherwise perfect or maintain the perfection of any security interest or lien
granted to it hereunder (unless the Trustee shall have become the successor
Servicer).
The Trustee executes the Certificates not in its individual capacity
but solely as Trustee of the Trust Fund created by this Agreement, in the
exercise of the powers and authority conferred and vested in it by this
Agreement. Each of the undertakings and agreements made on the part of the
Trustee on behalf of the Trust Fund in the Certificates is made and intended not
as a personal undertaking or agreement by the Trustee but is made and intended
for the purpose of binding only the Trust Fund.
Section 8.04 Trustee May Own Certificates. The Trustee in its
individual or any other capacity may become the owner or pledgee of Certificates
with the same rights as it would have if it were not the Trustee.
Section 8.05 Trustee's Fees and Expenses. As compensation for its
activities under this Agreement, the Trustee may withdraw from the Distribution
Account on each Distribution Date the Trustee Fee for the Distribution Date and,
during the Trustee Float Period, any interest or investment income earned on
funds deposited in the Distribution Account. The Trustee, the Custodian and any
director, officer, employee, or agent of the Trustee or the Custodian shall be
indemnified by the Trust Fund and held harmless against any loss, liability, or
expense (including reasonable attorneys' fees) incurred in connection with any
claim or legal action relating to:
(a) this Agreement,
(b) the Certificates, or
(c) the performance of any of the Trustee's duties under this
Agreement,
other than any loss, liability, or expense (i) resulting from any breach of a
Servicer's obligations in connection with this Agreement for which a Servicer
has performed its obligation to indemnify the Trustee pursuant to Section 6.05,
(ii) resulting from any breach of the Purchaser's obligations in connection with
this Agreement for which the Purchaser has performed its obligation to indemnify
the Trustee pursuant to Section 2.03(g) this Agreement, or (iii) incurred
because of willful misfeasance, bad faith, or negligence in the performance of
any of the Trustee's duties under this Agreement. This indemnity shall survive
the termination of this Agreement or the resignation or removal of the Trustee
under this Agreement. Without limiting the foregoing, except as otherwise agreed
upon in writing by the Depositor and the Trustee, and except for any expense,
disbursement, or advance arising from the Trustee's negligence, bad faith, or
willful misfeasance, the Trust Fund shall pay or reimburse the Trustee, for all
reasonable expenses, disbursements, and advances incurred or made by the Trustee
in accordance with this Agreement with respect to:
(A) the reasonable compensation, expenses, and disbursements of its
counsel not associated with the closing of the issuance of the Certificates; and
(B) the reasonable compensation, expenses, and disbursements of any
accountant, engineer, or appraiser that is not regularly employed by the
Trustee, to the extent that the Trustee must engage them to perform services
under this Agreement.
Except as otherwise provided in this Agreement or a separate letter
agreement between the Trustee and the Depositor, the Trustee shall not be
entitled to payment or reimbursement for any routine ongoing expenses incurred
by the Trustee in the ordinary course of its duties as Trustee, Registrar, or
paying agent under this Agreement or for any other expenses; provided, however,
no expense shall be reimbursed hereunder if it would not constitute an
"unanticipated expense incurred by the REMIC" within the meaning of the REMIC
Provisions.
Section 8.06 Eligibility Requirements for the 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 which would not cause any of
the Rating Agencies to reduce their respective then current ratings of the
Certificates (or having provided such security from time to time as is
sufficient to avoid such reduction) as evidenced in writing by each Rating
Agency. 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 this Section 8.06, the Trustee shall resign
immediately in the manner and with the effect specified in Section 8.07. The
entity serving as Trustee may have normal banking and trust relationships with
the Depositor and its affiliates or the Servicers and their affiliates;
provided, however, that such entity cannot be an affiliate of the Depositor or
the Servicers other than the Trustee in its role as successor to a Servicer.
Section 8.07 Resignation and Removal of the 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, the Servicers, 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 Section 8.06 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 Servicers may remove the Trustee
and appoint a successor trustee by written instrument, in triplicate, one copy
of which shall be delivered to the Trustee, one copy to each Servicer and one
copy to the successor trustee.
The Holders of Certificates entitled to a majority 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 shall be
delivered by the successor Trustee to each Servicer, one complete set to the
Trustee so removed and one complete set to the successor so appointed. The
successor trustee shall notify each Rating Agency of any removal of the Trustee.
Any resignation or removal of the Trustee and appointment of a
successor trustee pursuant to this Section 8.07 shall become effective upon
acceptance of appointment by the successor trustee as provided in Section 8.08.
Section 8.08 Successor Trustee. Any successor trustee appointed as
provided in Section 8.07 shall execute, acknowledge and deliver to the Depositor
and to its predecessor trustee and the Servicers 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
Servicers 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 its acceptance, the successor trustee is
eligible under Section 8.06 and its appointment does 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 the Trustee. Any corporation
into which the Trustee may be merged or converted or with which it may be
consolidated or any corporation resulting from any merger, conversion or
consolidation to which the Trustee shall be a party, or any corporation
succeeding to the business of the Trustee, shall be the successor of the Trustee
hereunder; provided, that such corporation shall be eligible under Section 8.06
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 applicable 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
applicable Servicer and the Trustee may consider appropriate. If a Servicer
shall not have joined in such appointment within 15 days after the receipt by
such Servicer of a request to do so, or in the case an Event of Default 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:
(a) 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 a Servicer, shall be conferred or imposed upon and
exercised or performed by the Trustee 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 a
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;
(b) No trustee hereunder shall be held personally liable because 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;
(c) The Trustee may at any time accept the resignation of or remove
any separate trustee or co-trustee; and
(d) The Trust Fund, and not the Trustee, shall be liable for the
payment of reasonable compensation, reimbursement and indemnification to any
such 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
Servicers 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 any REMIC election pertaining to the Trust Fund 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
Trustee covenants and agrees that it shall act as agent (and the Trustee is
hereby appointed to act as agent) on behalf of each Trust REMIC described in the
Preliminary Statement and that in such capacity it shall:
(a) prepare and file 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 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
described in the Preliminary Statement 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 to Certificateholders the schedules,
statements or information at such times and in such manner as may be required
thereby;
(b) within thirty days of the Closing Date, the Trustee will apply
for an employer identification number from the Internal Revenue Service via Form
SS-4 or any other acceptable method for all tax entities and shall also furnish
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 an election that each of Pooling-Tier REMIC-1, Pooling-Tier
REMIC 2, the Lower-Tier REMIC and the Upper-Tier REMIC be treated as a REMIC on
the federal tax return for its first taxable year (and, if necessary, under
applicable state law);
(d) prepare and forward to the Certificateholders and to the
Internal Revenue Service and, if necessary, state tax authorities, all
information returns and reports as and when required to be provided to them in
accordance with the REMIC Provisions, including the calculation of any original
issue discount using the prepayment assumption (as described in the Prospectus
Supplement);
(e) 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 (a "Non-Permitted Transferee"), or an agent (including a broker,
nominee or other middleman) of a Non-Permitted Transferee, or a pass-through
entity in which a Non-Permitted Transferee is the record holder of an interest
(the reasonable cost of computing and furnishing such information may be charged
to the Person liable for such tax);
(f) 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;
(g) not knowingly or intentionally take any action or omit to take
any action that would cause the termination of the REMIC status of any Trust
REMIC created hereunder;
(h) 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 Trust REMIC before its
termination when and as the same shall be due and payable (but such obligation
shall not prevent the Trustee or any other appropriate Person from contesting
any such tax in appropriate proceedings and shall not prevent the Trustee from
withholding payment of such tax, if permitted by law, pending the outcome of
such proceedings);
(i) cause federal, state or local income tax or information returns
to 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
(j) maintain records relating to each of the Trust REMICs, including
the income, expenses, assets, and liabilities thereof on a calendar year basis
and on the accrual method of accounting and the fair market value and 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 R-2
Certificates shall act as Tax Matters Person for Pooling-Tier REMIC-1 and the
holder of the largest Percentage Interest of the Class R-1 Certificates shall
act as the Tax Matters Person for Pooling-Tier REMIC 2, the Lower-Tier REMIC and
the Upper-Tier REMIC, in each case, within the meaning of Treasury Regulations
Section 1.860F-4(d), and the Trustee is hereby designated as agent of such
Certificateholders for such purpose (or if the Trustee is not so permitted, such
Holder shall be the Tax Matters Person in accordance with the REMIC Provisions).
In such capacity, the Trustee shall, as and when necessary and appropriate,
represent any Trust REMIC in any administrative or judicial proceedings relating
to an examination audit by any governmental taxing authority, request an
administrative adjustment as to any taxable year of any Trust REMIC, enter into
settlement agreements with any governmental taxing agency, extend any statute of
limitations relating to any tax item of any Trust REMIC, and otherwise act on
behalf of each Trust REMIC in relation to any tax matter or controversy
involving it.
The Trustee shall treat the rights of the Class P Certificateholders
to receive Prepayment Premiums, the rights of the Class X Certificateholders to
receive amounts from the Excess Reserve Fund Account and the Supplemental
Interest Trust (subject to the obligation to pay Basis Risk Carry Forward
Amounts and Upper-Tier Carry Forward Amounts) and the rights of the Principal
Certificateholders to receive Basis Risk Carry Forward Amounts and Upper-Tier
Carry Forward Amounts as the beneficial ownership of interests in a grantor
trust and not as obligations of any Trust REMIC created hereunder, for federal
income tax purposes. The Trustee shall file or cause to be filed with the
Internal Revenue Service Form 1041 or such other form as may be applicable and
shall furnish or cause to be furnished, to the Class P, Class X
Certificateholders and the Principal Certificateholders, the respective amounts
described above that are received, in the time or times and in the manner
required by the Code.
To enable the Trustee to perform its duties under this Agreement,
the Depositor shall provide to the Trustee within ten days after the Closing
Date all information or data that the Trustee requests in writing and determines
to be relevant for tax purposes to the valuations and offering prices of the
Certificates, including the price, yield, prepayment assumption, and projected
cash flows of the Certificates and the Mortgage Loans. Moreover, the Depositor
shall provide information to the Trustee concerning the value, if any, to each
Class of Principal Certificates of the right to receive Basis Risk Carry Forward
Amounts from the Excess Reserve Fund Account and Basis Risk Carry Forward
Amounts or Upper-Tier Carry Forward Amounts from the Supplemental Interest
Trust. Thereafter, the Depositor shall provide to the Trustee promptly upon
written request therefor any additional information or data that the Trustee
may, from time to time, reasonably request to enable the Trustee to perform its
duties under this Agreement; provided, however, that the Depositor shall not be
required to provide any information regarding the Mortgage Loans after the
Closing Date or any information that the Servicer is required to provide to the
Trustee pursuant to this Agreement. The Depositor hereby indemnifies the Trustee
for any losses, liabilities, damages, claims, or expenses of the Trustee arising
from any errors or miscalculations of the Trustee that result from any failure
of the Depositor to provide, pursuant to this paragraph, accurate information or
data to the Trustee on a timely basis.
If 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 the Pooling-Tier REMIC-1 as defined in Section 860G(c)
of the Code, on any contribution to any Trust REMIC after the Start-up Day
pursuant to Section 860G(d) of the Code, or any other tax is imposed, including,
if applicable, any minimum tax imposed on any Trust REMIC pursuant to Sections
23153 and 24874 of the California Revenue and Taxation Code, if not paid as
otherwise provided for herein, the tax shall be paid by (i) the Trustee if such
tax arises out of or results from negligence of the Trustee in the performance
of any of its obligations under this Agreement, (ii) the applicable Servicer, in
the case of any such minimum tax, and otherwise if such tax arises out of or
results from a breach by such Servicer of any of its obligations under this
Agreement, (iii) the Purchaser if such tax arises out of or results from the
Purchaser's obligation to repurchase a Mortgage Loan pursuant to Section 2.03,
or (iv) in all other cases, or if the Trustee, the applicable Servicer or the
Purchaser fails to honor its obligations under the preceding clause (i), (ii),
or (iii), any such tax will be paid with amounts otherwise to be distributed to
the Certificateholders, as provided in Section 4.02(a).
For as long as each Trust REMIC shall exist, the Trustee shall act
in accordance with this Agreement and shall comply with any directions of the
Depositor or a Servicer as provided herein so as to assure such continuing
treatment. The Trustee shall not (a) sell or permit the sale of all or any
portion of the Mortgage Loans unless pursuant to a repurchase or substitution in
accordance with this Agreement, or of any investment of deposits in an Account,
and (b) accept any contribution to any Trust REMIC after the Startup Day without
receipt of a REMIC Opinion.
Section 8.12 Periodic Filings. (a) The Trustee and each Servicer
shall reasonably cooperate with the Depositor in connection with the Trust's
satisfying the reporting requirements under the Exchange Act. The Trustee 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 of the
Securities and Exchange Commission thereunder, and the Trustee shall sign and
file (via the Securities and Exchange Commission's Electronic Data Gathering and
Retrieval System) such Forms on behalf of the Depositor, if an officer of the
Depositor signs the Certification pursuant to paragraph (b) of this Section
8.12, or otherwise on behalf of the Trust. In the event the Trustee is signing
on behalf of the Depositor pursuant to the preceding sentence, the Depositor
hereby grants to the Trustee a limited power of attorney to execute and file
each such document on behalf of the Depositor. Such power of attorney shall
continue until the earlier of either (i) receipt by the Trustee from the
Depositor of written termination of such power of attorney and (ii) the
termination of the Trust. Notwithstanding the foregoing, the Trustee shall
prepare such Form 10-K to be signed by the Depositor and the Depositor shall
sign such form unless the Securities and Exchange Commission has indicated that
it will accept a Certification signed by the Depositor where the related Form
10-K is signed by the Trustee on behalf of the Depositor.
(b) The Depositor shall prepare or cause to be prepared and file the
current Report on Form 8-K attaching this Agreement as an exhibit and,
thereafter, each Form 8-K shall be filed by the Trustee within 15 days after
each Distribution Date, including a copy of the statement to the
Certificateholders for such Distribution Date as an exhibit thereto. On or prior
to March 30th of each year (or such earlier date as may be required by the
Exchange Act and the Rules and Regulations of the Securities and Exchange
Commission), the Trustee 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 each Servicer's annual
statement of compliance described under Section 3.22 and the accountant's report
described under Section 3.23, in each case to the extent they have been timely
delivered to the Trustee (and upon which the Trustee may rely in delivering its
certification hereunder). If they are not so timely delivered, the Trustee shall
file an amended Form 10-K including such documents as exhibits reasonably
promptly after they are delivered to the Trustee. The Trustee shall have no
liability with respect to any failure to properly prepare or file such periodic
reports resulting from or relating to the Trustee's inability or failure to
obtain any information not resulting from its own negligence, willful misconduct
or bad faith. The Form 10-K shall also include a certification in the form
attached hereto as Exhibit M (the "Certification"), which shall, except as
described below, be signed by the senior officer of the Depositor in charge of
securitization. Notwithstanding the foregoing, if it is determined by the
Depositor that the Certification may be executed by multiple persons, the
Trustee shall sign the Certification in respect of items 1 through 3 thereof and
the each Servicer shall cause the senior officer in charge of servicing at such
Servicer to sign the Certification in respect of items 4 and 5 thereof, solely
and with respect to such Servicer and the Trustee may rely on the Certification
signed by such Servicer to the same extent as provided in subsection (c) below.
(c) In the event the Certification is to be signed by an officer of
the Depositor, the Trustee shall sign a certification (in the form attached
hereto as Exhibit N) for the benefit of the Depositor and its officers,
directors and Affiliates in respect of items 1 through 3 of the Certification
(provided, however, that the Trustee shall not undertake an analysis of the
accountant's report attached as an exhibit to the Form 10-K), and each Servicer
shall sign a certification solely with respect to such Servicer (in the form
attached hereto as Exhibit O) for the benefit of the Depositor, the Trustee and
their officers, directors and Affiliates in respect of items 4 and 5 of the
Certification. Each such certification shall be delivered to the Depositor and
the Trustee by March 20th of each year (or if not a Business Day, the
immediately preceding Business Day). The Certification attached hereto as
Exhibit M shall be delivered to the Trustee by March 25th for filing on or prior
to March 30th of each year (or if not a Business Day, the immediately preceding
Business Day). In addition, (i) the Trustee shall indemnify and hold harmless
the Depositor and its officers, directors and Affiliates from and against any
losses, damages, penalties, fines, forfeitures, reasonable and necessary legal
fees and related costs, judgments and other costs and expenses arising out of or
based upon a breach of the Trustee's obligations under this Section 8.12(c) or
the Trustee's negligence, bad faith or willful misconduct in connection
therewith, and (ii) each Servicer, severally and not jointly, shall indemnify
and hold harmless the Depositor, the Trustee and their respective officers,
directors, employees, agents and Affiliates from and against any losses,
damages, penalties, fines, forfeitures, reasonable and necessary legal fees and
related costs, judgments and other costs and expenses arising out of or based
upon a breach of such Servicer's obligations under this Section 8.12(c) or such
Servicer's negligence, bad faith or willful misconduct in connection therewith.
If the indemnification provided for herein is unavailable or insufficient to
hold harmless the indemnified party, then (i) the Trustee agrees in connection
with a breach of the Trustee's obligations under this Section 8.12(c) or the
Trustee's negligence, bad faith or willful misconduct in connection therewith
that it shall contribute to the amount paid or payable by the Depositor as a
result of the losses, claims, damages or liabilities of the Depositor in such
proportion as is appropriate to reflect the relative fault of the Depositor on
the one hand and the Trustee on the other and (ii) each Servicer agrees that it
shall contribute to the amount paid or payable by the Depositor and/or the
Trustee as a result of the losses, claims, damages or liabilities of the
Depositor and/or the Trustee in such proportion as is appropriate to reflect the
relative fault of the Depositor or the Trustee, as the case may be, on the one
hand and such Servicer on the other in connection with a breach of the
Servicers' obligations under this Section 8.12(c) or such Servicer's negligence,
bad faith or willful misconduct in connection therewith.
(d) Upon any filing with the Securities and Exchange Commission, the
Trustee shall promptly deliver to the Depositor a copy of any such executed
report, statement or information.
(e) Prior to January 30 of the first year in which the Trustee is
able to do so under applicable law, the Trustee shall file a Form 15 Suspension
Notification with respect to the Trust.
Section 8.13 Tax Treatment of Upper-Tier Carry Forward Amounts and
Basis Risk Carry Forward Amounts. The Trustee shall treat the rights that each
Class of Principal Certificates has to receive payments of Upper-Tier Carry
Forward Amounts and, to the extent not paid from the Excess Reserve Fund
Account, Basis Risk Carry Forward Amounts from the Supplemental Interest Trust
(together with Basis Risk Carry Forward Amounts from the Excess Reserve Fund
Account) as rights to receive payments under a limited recourse interest rate
cap contract written by the Class X Certificateholders in favor of each such
Class. Accordingly, each Class of Certificates (excluding the Class X, Class P
and Class R Certificates) will be comprised of two components - an Upper-Tier
Regular Interest and an interest in an interest rate cap contract, and the Class
X Certificate will be comprised of four components - two Upper-Tier Regular
Interests (the Class X Interest and the Class IO Interest), ownership of the
Excess Reserve Fund Account, subject to an obligation to pay Basis Risk Carry
Forward Amounts, and ownership of the Supplemental Interest Trust and the
Interest Rate Swap Agreement, subject to the obligation to pay Upper-Tier Carry
Forward Amounts and, without duplication, Basis Risk Carry Forward Amounts. The
Trustee shall allocate the issue price for a Class of Principal Certificates
among the respective components for purposes of determining the issue price of
the Upper-Tier Regular Interest component based on information received from the
Depositor. Unless otherwise advised by the Depositor in writing, for federal
income tax purposes, the Trustee is hereby directed to assign a value of zero to
the right of each Holder of an Principal Certificate to receive the related
Upper-Tier Carry Forward Amounts and, without duplication, the related Basis
Risk Carry Forward Amount for purposes of allocating the purchase price of an
initial Principal Certificateholder between such right and the related
Upper-Tier Regular Interest.
Holders of Principal Certificates shall also be treated as having
agreed to pay, on each Distribution Date, to the Holders of the Class X
Certificates an aggregate amount equal to the excess, if any, of (i) Net Swap
Payments and Swap Termination Payments (other than Defaulted Swap Termination
Payments) over (ii) the sum of amounts payable on the Class X Interest available
for such payments and amounts payable on the Class IO Interest (such excess, a
"Class IO Shortfall"), first from interest and then from principal distributable
on the Principal Certificates. A Class IO Shortfall payable from interest
collections shall be allocated pro rata among such Principal Certificates based
on the amount of interest otherwise payable to such Class of Principal
Certificates, and a Class IO Shortfall payable from principal collections shall
be allocated in reverse sequential order beginning with the most subordinate
Class of Principal Certificates then outstanding.
Any payments of Class IO Shortfalls shall be treated for tax
purposes as having been received by the Holders of such Class of Principal
Certificates in respect of the corresponding Upper-Tier Regular Interest and as
having been paid by such Holders to the Holders of the Class X Certificates
through the Supplemental Interest Trust.
Section 8.14 Custodial Responsibilities. (a) The Custodian shall
provide access to the Mortgage Loan Documents in possession of the Custodian
regarding the related Mortgage Loans and REO Property and the servicing thereof
to the Trustee, the Certificateholders, the FDIC, and the supervisory agents and
examiners of the FDIC, such access being afforded only upon reasonable prior
written request and during normal business hours at the office of the Custodian.
The Custodian shall allow representatives of the above entities to photocopy any
of the records and documentation and shall provide equipment for that purpose at
the expense of the person requesting such access.
Upon receipt of a written Request for Release by Countrywide to the
Custodian, the Custodian shall release within five Business Days the related
Mortgage File in accordance with Section 3.16.
(b) The Custodian may resign from its obligations hereunder upon 60
days' prior written notice to the Trustee, the Depositor and Countrywide. Such
resignation shall take effect upon (i) the appointment of a successor Custodian
reasonably acceptable to the Depositor within such 60 day period; and (ii)
delivery of all Mortgage Loan Files to the successor Custodian. The Trustee
shall have the right, but not the obligation, to become the successor Trustee.
If no successor Custodian is appointed within 60 days after written notice of
the Custodian's resignation is received by the Trustee, the Custodian may
petition a court of competent jurisdiction to appoint a successor Custodian.
Upon such resignation and appointment of successor Custodian, the
Custodian shall, at the Custodian's expense, promptly transfer to the successor
Custodian, as directed in writing by the Trustee, all Mortgage Files being
administered under this Agreement. Notwithstanding the foregoing, the Trust
Fund, not the Custodian, shall bear the costs relating to the transfer of
Mortgage Files if the Custodian shall resign due to the failure of the Custodian
to be paid all fees due to the Custodian hereunder.
Section 8.15 Limitations on Custodial Responsibilities.
(a) The Custodian shall be under no duty or obligation to inspect,
review or examine the Mortgage Files to determine that the contents thereof are
appropriate for the represented purpose or that they have been actually recorded
or that they are other than what they purport to be on their face.
(b) The Custodian shall not be responsible for preparing or filing
any reports or returns relating to federal, state or local income taxes with
respect to this Agreement, other than for the Custodian's compensation or for
reimbursement of expenses.
(c) The Custodian shall not be responsible or liable for, and makes
no representation or warranty with respect to, the validity, adequacy or
perfection or any lien upon or security interest in any Mortgage File.
(d) The duties and obligations of the Custodian shall only be such
as are expressly set forth in this Agreement or as set forth in a written
amendment to this Agreement executed by the parties hereto or their successors
and assigns. In the event that any provision of this Agreement implies or
requires that action or forbearance be taken by a party, but is silent as to
which party has the duty to act or refrain from acting, the parties agree that
the Custodian shall not be the party required to take the action or refrain from
acting. In no event shall the Custodian have any responsibility to ascertain or
take action except as expressly provided herein.
(e) The Custodian makes no representations and shall have no
responsibilities (except as expressly set forth herein) as to the validity,
sufficiency, value, genuineness, ownership or transferability of any of the
Mandalay Mortgage Loans or Conduit Mortgage Loans, and shall not be required to
and shall not make any representations as to the validity, value or genuineness
of the Mandalay Mortgage Loans or the Conduit Mortgage Loans.
(f) The Custodian shall not be liable for any error of judgment, or
for any act done or step taken or omitted by it, in good faith, or for any
mistake of fact or law, or for anything that it may do or refrain from doing in
connection therewith, except in the case of its negligent performance or
omission or its bad faith or willful misfeasance.
(g) The Custodian shall not be responsible to verify (i) the
validity, legality, enforceability, sufficiency, due authorization or
genuineness of any document in the Mortgage File or of any Mandalay Mortgage
Loans or Conduit Mortgage Loans or (ii) the collectability, insurability,
effectiveness including the authority or capacity of any Person to execute or
issue any document in the Mortgage File, or suitability of any Mandalay Mortgage
Loan or Conduit Mortgage Loans unless specified otherwise in this Agreement.
(h) The Custodian shall have no obligation to verify the receipt of
any such documents the existence of which was not made known to the Custodian by
receipt of the Mortgage File.
(i) The Custodian shall have no obligation to determine whether the
recordation of any document is necessary.
(j) In no event shall the Custodian or its directors, affiliates,
officers, agents, and employees be held liable for any special, indirect or
consequential damages resulting from any action taken or omitted to be taken by
it or them hereunder or in connection herewith even if advised of the
possibility of such damages.
ARTICLE IX
TERMINATION
Section 9.01 Termination upon Liquidation or Purchase of the
Mortgage Loans. Subject to Section 9.03, the obligations and responsibilities of
the Depositor, the Servicers and the Trustee created hereby with respect to the
Trust Fund shall terminate upon the earlier of (a) the purchase, on the Optional
Termination Date, of all Mortgage Loans (and REO Properties) at the price equal
to the sum of (i) 100% of the unpaid principal balance of each Mortgage Loan
(other than in respect of REO Property) plus accrued and unpaid interest thereon
at the applicable Mortgage Interest Rate, (ii) the lesser of (x) the appraised
value of any REO Property as determined by the higher of two appraisals
completed by two independent appraisers selected by the Person electing to
terminate the Trust Fund (or in the case of JPMorgan, acting at the direction of
the Majority Class X Certificateholder, selected by the Majority Class X
Certificateholder), at the expense of such Person (or in the case of JPMorgan,
acting at the direction of the Majority Class X Certificateholder, the Majority
Class X Certificateholder), plus accrued and unpaid interest on the related
Mortgage Loan at the applicable Mortgage Interest Rates and (y) the unpaid
principal balance of each Mortgage Loan related to any REO Property, in each
case plus accrued and unpaid interest thereon at the applicable Mortgage
Interest Rate, and (iii) any Swap Termination Payment owed to the Swap Provider
(as provided to the Trustee by the Swap Provider pursuant to the Interest Rate
Swap Agreement) ("Termination Price") and (b) the later of (i) the maturity or
other Liquidation Event (or any Advance with respect thereto) of the last
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 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.
Section 9.02 Final Distribution on the Certificates. If on any
Remittance Date, the Servicers notify the Trustee that there are no Outstanding
Mortgage Loans and no other funds or assets in the Trust Fund other than the
funds in the Collection Account, the Servicers shall direct the Trustee promptly
to send a Notice of Final Distribution to each Certificateholder and the Swap
Provider. If JPMorgan (at the direction of the Majority Class X
Certificateholder), or JPMorgan acting for its own account, elects to terminate
the Trust Fund pursuant to clause (a) of Section 9.01, by the 25th day of the
month preceding the month of the final distribution, the Person electing to
terminate the Trust Fund shall notify the Depositor, the Servicers and the
Trustee of the date the electing Person intends to terminate the Trust Fund and
of the applicable Termination Price of the Mortgage Loans and REO Properties.
JPMorgan, when acting at the direction of the Majority Class X
Certificateholder, shall be entitled to reasonably rely on a representation from
the Majority Class X Certificateholder that it is the Majority Class X
Certificateholder and is entitled under this Agreement to direct JPMorgan to
terminate the Trust Fund.
A Notice of Final Distribution, specifying the Distribution Date on
which 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 later than the 15th day of the month of
such final distribution. Any such Notice of Final Distribution shall specify (a)
the Distribution Date upon which final distribution on the 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 the
Certificates at the office therein specified. The Trustee will give such Notice
of Final Distribution to each Rating Agency at the time such Notice of Final
Distribution is given to Certificateholders.
In the event such Notice of Final Distribution is given and the
Person electing to terminate the Trust Fund is JPMorgan (at the direction of the
Majority Class X Certificateholder), the Majority Class X Certificateholder
shall remit the applicable Termination Price in immediately available funds to
JPMorgan at least two Business Days prior to the applicable Distribution Date,
and, upon receipt of such funds from the Majority Class X Certificateholder,
JPMorgan shall promptly deposit such funds in the applicable Collection Account.
During the time such funds are held in such Collection Account, such funds shall
be invested, at the direction of the Majority Class X Certificateholder, in
Permitted Investments, and the Majority Class X Certificateholder shall be
entitled to all income from such investments, and shall be responsible for, and
shall reimburse JPMorgan for all losses from such investments. The Majority
Class X Certificateholder shall be obligated to reimburse JPMorgan for its
reasonable out-of-pocket expenses incurred in connection with its termination of
the Trust Fund at the direction of the Majority Class X Certificateholder and
shall indemnify and hold harmless JPMorgan for any losses, liabilities or
expenses resulting from any claims directly resulting from or relating to
JPMorgan's termination of the Trust Fund at the direction of the Majority Class
X Certificateholder, except to the extent such losses, liabilities or expenses
arise out of or result from JPMorgan's negligence, bad faith or willful
misconduct. In connection with any such termination of the Trust Fund, each
Servicer shall cause all funds in its Collection Account, including the
applicable Termination Price for the Mortgage Loans and REO Properties if such
Servicer is electing to terminate the Trust Fund (individually or together with
another Servicer), to be remitted to the Trustee for deposit in the Distribution
Account on the Business Day prior to the applicable Distribution Date. Upon such
final deposit with respect to the Trust Fund and the receipt by the Custodian or
the Trustee, as applicable, of a Request for Release therefor, the Custodian or
the Trustee, as applicable, shall promptly release to the Person electing to
terminate the Trust Fund, or its designee, the Custodial Files for the Mortgage
Loans.
Upon presentation and surrender of the Certificates, the Trustee
shall cause to be distributed to the Certificateholders of each Class (after
reimbursement of all amounts due to the Servicers (including all unreimbursed
Advances and any Servicing Fees accrued and unpaid as of the date the
Termination Price is paid), the Depositor and the Trustee hereunder), in each
case on the final Distribution Date and in the order set forth in Section 4.02,
in proportion to their respective Percentage Interests, with respect to
Certificateholders of the same Class, an amount up to an amount equal to (i) as
to each Class of Regular Certificates (except the Class X Certificates), the
Certificate Balance thereof plus for each such Class and the Class X
Certificates accrued interest thereon in the case of an interest bearing
Certificate and all other amounts to which such Classes are entitled pursuant to
Section 4.02, (ii) as to the Residual Certificates, the amount, if any, which
remains on deposit in the Distribution Account (other than the amounts retained
to meet claims) 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 appropriate steps, or may appoint an agent to take appropriate 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 which remain a part of the Trust Fund. If within one year after the
second notice all Certificates shall not have been surrendered for cancellation,
the Class R Certificateholders shall be entitled to all unclaimed funds and
other assets of the Trust Fund which remain subject hereto.
Section 9.03 Additional Termination Requirements. In the event a
Person elects to terminate the Trust Fund as provided in Section 9.01, 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 electing Person, 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" on any Trust REMIC as defined in Section
860F of the Code, or (ii) cause any Trust REMIC to fail to qualify as a REMIC at
any time that any Certificates are outstanding:
(a) The Trustee shall sell all of the assets of the Trust Fund to
the Person electing to terminate the Trust Fund, or its designee, and, within 90
days of such sale, shall distribute to the Certificateholders the proceeds of
such sale in complete liquidation of each of the Trust REMICs; and
(b) The Trustee shall attach a statement to the final federal income
tax return for each of the Trust REMICs stating that pursuant to Treasury
Regulations Section 1.860F 1, the first day of the 90 day liquidation period for
each such Trust REMIC was the date on which the Trustee sold the assets of the
Trust Fund to the electing Person.
ARTICLE X
MISCELLANEOUS PROVISIONS
Section 10.01 Amendment. This Agreement may be amended from time to
time by the Depositor, each Servicer, the Custodian 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, (iii) to add
to the duties of the Depositor, the Custodian or a 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 clause (iv)
or (v) above shall not, as evidenced by an Opinion of Counsel (which Opinion of
Counsel shall not be an expense of the Trustee or the Trust Fund), adversely
affect in any material respect the interests of any Certificateholder; provided,
further, that the amendment shall not be deemed to adversely affect in any
material respect the interests of the Certificateholders 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 Custodian, the
Trustee, the Depositor and each Servicer also may at any time and from time to
time amend this Agreement, but 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 under
the REMIC Provisions, (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.
This Agreement may also be amended from time to time by the
Depositor, each Servicer, the Custodian and the Trustee with the consent of the
Holders of Certificates evidencing Percentage Interests aggregating not less
than 66 2/3% 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
clause (i), without the consent of the Holders of Certificates of such Class
evidencing, as to such Class, Percentage Interests aggregating not less than 66
2/3%, 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 (i) 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 will not
cause the imposition of any tax on any Trust REMIC or the Certificateholders or
cause any Trust REMIC to fail to qualify as a REMIC or the grantor trust to fail
to qualify as a grantor trust at any time that any Certificates are outstanding
and (ii) the party seeking such amendment shall have provided written notice to
the Rating Agencies (with a copy of such notice to the Trustee) of such
amendment, stating the provisions of the Agreement to be amended.
Notwithstanding the foregoing provisions of this Section 10.01, with
respect to any amendment that significantly modifies the permitted activities of
the Trustee or a Servicer, any Certificate beneficially owned by the Depositor
or any of its Affiliates shall be deemed not to be outstanding (and shall not be
considered when determining the percentage of Certificateholders consenting or
when calculating the total number of Certificates entitled to consent) for
purposes of determining if the requisite consents of Certificateholders under
this Section 10.01 have been obtained.
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 10.01 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 which modifies its obligations or liabilities without its consent and
in all cases 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
is subject to recordation in all appropriate public offices for real property
records in all the counties or other comparable jurisdictions in which any or
all of the properties subject to the Mortgages are situated, and in any other
appropriate public recording office or elsewhere, such recordation to be
effected by either Servicer at the expense of the Trust, but only upon receipt
of 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 (i) of the Mortgage Loans by the Depositor
and (ii) of the Trust Fund by the Depositor to the Trustee each be, and be
construed as, an absolute sale thereof. It is, further, not the intention of the
parties that such conveyances be deemed a pledge thereof. However, in the event
that, notwithstanding the intent of the parties, such assets are held to be the
property of the Depositor, as the case may be, or if for any other reason this
Agreement is held or deemed to create a security interest in either 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
conveyances 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 transferred,
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.
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 Event of Default that has not been cured;
3. The resignation or termination of a Servicer or the Trustee and
the appointment of any successor;
4. The repurchase or substitution of Mortgage Loans pursuant to
Sections 2.03, 2.07 or 3.28; and
5. The final payment to Certificateholders.
(b) In addition, the Trustee shall promptly furnish to each Rating
Agency copies of the following:
1. Each report to Certificateholders described in Section 4.03.
2. Any notice of a purchase of a Mortgage Loan pursuant to Section
3.28.
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, to GS Mortgage Securities Corp., 00 Xxxxx Xxxxxx, Xxx Xxxx, Xxx
Xxxx 00000, Attention: Principal Finance Group/Xxxxxxxxxxx X. Xxxxxxx and Asset
Management Group/Senior Asset Manager (and, in the case of the Officer's
Certificate delivered pursuant to Section 3.22, to PricewaterhouseCoopers LLP,
000 Xxxxxxxx Xxxxxx, Xxxxx 000, Xxxx Xxxx Xxxxx, Xxxxxxx 00000, Attention:
Xxxxxxxx Xxxxxxx), or such other address as may be hereafter furnished to the
Trustee and the Servicers by the Depositor in writing; (b) in the case of
JPMorgan, to JPMorgan Chase Bank, National Association, in care of Chase Home
Finance LLC, 00000 Xxxxxx Xxxxxxxx, Xxx Xxxxx, Xxxxxxxxxx 00000, Attention:
Xxxxx Dunks (with a copy to 000 Xxxx Xxxxxx Xxxxx, Xxxxxx, Xxx Xxxxxx 00000,
Attention: General Counsel), or such other address as may be hereafter furnished
to the Depositor, the Custodian, and the Trustee by JPMorgan in writing; (c) in
the case of Countrywide, to Countrywide Home Loans Servicing LP, 0000 Xxxx
Xxxxxxx, Xxxxxxxxx, Xxxxxxxxxx 00000, Attention: Xxxx Xxxx, or such other
address as may be hereafter furnished to the Depositor, the Custodian, and
Trustee by Countrywide in writing, (d) in the case of the Custodian, to X.X.
Xxxxxx Trust Company, National Association, 0000 Xxxxxxxxxx Xxxxxxxxx, Xxxxx
000, Xxxxxx, Xxxxx 00000, Attention D'Xxx Xxxxxxxx, or such other address as may
be hereafter furnished to the Depositor, the Servicers and the Trustee in
writing, (e) in the case of the Trustee, to the Corporate Trust Office, or such
other address as the Trustee may hereafter furnish to the Depositor, Countrywide
and JPMorgan, and the Custodian, and (f) in the case of each 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; Sales; Advance Facilities. (a)
Notwithstanding anything to the contrary contained herein, except as provided in
Section 6.04, this Agreement may be assigned by any Servicer with the prior
written consent of the Depositor and the Trustee. In addition, for so long as a
Servicer is acting as a Servicer hereunder (i) such Servicer is hereby
authorized to enter into an advance facility ("Advance Facility") under which
(A) such Servicer sells, assigns or pledges to an Advancing Person such
Servicer's rights under this Agreement to be reimbursed for any P&I Advances or
Servicing Advances and/or (B) an Advancing Person agrees to fund some or all P&I
Advances or Servicing Advances required to be made by such Servicer pursuant to
this Agreement and (ii) such Servicer is hereby authorized to assign its rights
to the Servicing Fee; it being understood neither the Trust Fund nor any party
hereto shall have a right or claim to an Advance Reimbursement Amount so
assigned or to the portion of the Servicing Fee so assigned; it being further
understood that upon resignation or termination of such Servicer and
reimbursement of all amounts due to the Servicers hereunder, the assignment of
further Advance reimbursement rights to such Advance Facility (in the case of
clause (i)) and such assignment (in the case of clause (ii)) shall be terminated
with respect to amounts due related to this Agreement. No consent of the
Trustee, Certificateholders, or any other party is required before a Servicer
may enter into an Advance Facility. Notwithstanding the existence of any Advance
Facility under which an Advancing Person agrees to fund P&I Advances and/or
Servicing Advances on a Servicer's behalf, such Servicer shall remain obligated
pursuant to this Agreement to make P&I Advances and Servicing Advances pursuant
to and as required by this Agreement, and shall not be relieved of such
obligations by virtue of such Advance Facility.
(b) Advance reimbursement amounts ("Advance Reimbursement Amounts")
shall consist solely of amounts in respect of P&I Advances and/or Servicing
Advances made with respect to the Mortgage Loans for which the applicable
Servicer would be permitted to reimburse itself in accordance with this
Agreement, assuming such Servicer had made the related P&I Advance(s) and/or
Servicing Advance(s).
(c) The applicable Servicer shall maintain and provide to any
successor Servicer a detailed accounting on a loan-by-loan basis as to amounts
advanced by, pledged or assigned to, and reimbursed to any Advancing Person. The
successor Servicer shall be entitled to rely on any such information provided by
the predecessor Servicer, and the successor Servicer shall not be liable for any
errors in such information.
(d) An Advancing Person who purchases or receives an assignment or
pledge of the rights to be reimbursed for P&I Advances and/or Servicing
Advances, and/or whose obligations hereunder are limited to the funding of P&I
Advances and/or Servicing Advances shall not be required to meet the criteria
for qualification of a Subservicer set forth in this Agreement.
(e) Advance Reimbursement Amounts distributed with respect to each
Mortgage Loan shall be allocated to outstanding xxxxxxxxxxxx X&X Advances or
Servicing Advances (as the case may be) made with respect to that Mortgage Loan
on a "first-in, first out" (FIFO) basis. Such documentation shall also require
each Servicer to provide to the related Advancing Person or its designee
loan-by-loan information with respect to each such Advance Reimbursement Amount
distributed to such Advancing Person or Advance Facility trustee on each
Distribution Date, to enable the Advancing Person or Advance Facility trustee to
make the FIFO allocation of each such Advance Reimbursement Amount with respect
to each Mortgage Loan. The applicable Servicer shall remain entitled to be
reimbursed by the Advancing Person or Advance Facility trustee for all P&I
Advances and Servicing Advances funded by such Servicer to the extent the
related rights to be reimbursed therefor have not been sold, assigned or pledged
to an Advancing Person.
(f) Any amendment to this Section 10.07 or to any other provision of
this Agreement that may be necessary or appropriate to effect the terms of an
Advance Facility as described generally in this Section 10.07, including
amendments to add provisions relating to a successor Servicer, may be entered
into by the Custodian, the Trustee, the Depositor and each Servicer without the
consent of any Certificateholder, notwithstanding anything to the contrary in
this Agreement, provided, that the Trustee has been provided an Opinion of
Counsel that such amendment has no material adverse effect on the
Certificateholders which opinion shall be an expense of the Servicer entering
into the Advance Facility but in any case shall not be an expense of the Trustee
or the Trust Fund; provided, further, that the amendment shall not be deemed to
adversely affect in any material respect the interests of the Certificateholders
if the Person requesting the amendment obtains a letter from each Rating Agency
(instead of obtaining an Opinion of Counsel) 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
rating 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. Prior to entering into an Advance
Facility, the applicable Servicer shall notify the lender under such facility in
writing that: (a) the Advances financed by and/or pledged to the lender are
obligations owed to such Servicer on a non-recourse basis payable only from the
cash flows and proceeds received under this Agreement for reimbursement of
Advances only to the extent provided herein, and the Trustee and the Trust are
not otherwise obligated or liable to repay any Advances financed by the lender;
(b) the applicable Servicer will be responsible for remitting to the lender the
applicable amounts collected by it as reimbursement for Advances funded by the
lender, subject to the restrictions and priorities created in this Agreement;
and (c) the Trustee shall not have any responsibility to track or monitor the
administration of the financing arrangement between the applicable Servicer and
the lender.
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 an Event of Default 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. Countrywide agrees that
on reasonable prior notice, and JPMorgan agrees that on 15 days' prior notice
or, if an Event of Default has occurred and is continuing, 3 Business Days', it
will permit any representative of the Depositor, or the Trustee during such
Person's normal business hours, to examine all the books of account, records,
reports and other papers of such Person relating to the applicable 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 such
Mortgage Loans with its officers, employees and independent public accountants
(and by this provision each Servicer 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
reasonable out-of-pocket expense of a Servicer incident to the exercise by the
Depositor, or the Trustee of any right under this Section 10.09 shall be borne
by such Servicer. The Servicers may impose commercially reasonable restrictions
on dissemination of information the Servicer defines as confidential.
Nothing in this Section 10.09 shall limit the obligation of the
Servicer to observe any applicable law prohibiting disclosure of information
regarding the Mortgagors and the failure of the Servicers to provide access as
provided in this Section as a result of such obligation shall not constitute a
breach of this Section. Nothing in this Section 10.09 shall require a Servicer
to collect, create, collate or otherwise generate any information that it does
not generate in its usual course of business. The Servicers shall not be
required to make copies of or to ship documents to any Person who is not a party
to this Agreement, and then only if provisions have been made for the
reimbursement of the costs thereof.
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.
Section 10.11 Waiver of Jury Trial. EACH PARTY HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVES (TO THE EXTENT PERMITTED BY APPLICABLE LAW)
ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY OF ANY DISPUTE ARISING UNDER OR
RELATING TO THIS AGREEMENT AND AGREES THAT ANY SUCH DISPUTE SHALL BE TRIED
BEFORE A JUDGE SITTING WITHOUT A JURY.
Section 10.12 Limitation of Damages. NOTWITHSTANDING ANYTHING
CONTAINED HEREIN TO THE CONTRARY, THE PARTIES AGREE THAT NO PARTY SHALL BE
LIABLE TO ANY OTHER PARTY FOR ANY PUNITIVE DAMAGES WHATSOEVER, WHETHER IN
CONTRACT, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY), OR ANY OTHER LEGAL
OR EQUITABLE PRINCIPLE, PROVIDED, HOWEVER, THAT SUCH LIMITATION SHALL NOT BE
APPLICABLE WITH RESPECT TO THIRD PARTY CLAIMS MADE AGAINST A PARTY.
Section 10.13 Rights of the Swap Provider. The Swap Provider shall
be deemed a third-party beneficiary of this Agreement to the same extent as if
it were a party hereto and shall have the right to enforce its rights under this
Agreement.
* * * * * * *
IN WITNESS WHEREOF, the Depositor, the Custodian, the Trustee and
the Servicers have caused their names to be signed hereto by their respective
officers thereunto duly authorized as of the day and year first above written.
GS MORTGAGE SECURITIES CORP.
By: /s/ Xxxxxxxx Xxxx
------------------------------------
Name: Xxxxxxxx Xxxx
Title: Vice President
DEUTSCHE BANK NATIONAL TRUST COMPANY,
solely as Trustee and not in its
individual capacity
By: /s/ Xxxxxxxx Xxxxxx
------------------------------------
Name: Xxxxxxxx Xxxxxx
Title: Associate
By: /s/ Xxxxxxx Xxxxxxx
------------------------------------
Name: Xxxxxxx Xxxxxxx
Title: Assistant Vice President
COUNTRYWIDE HOME LOANS
SERVICING LP
By: COUNTRYWIDE GP, INC.
By: /s/ Xxxxxx Xxxxx
-----------------------------------
Name: Xxxxxx Xxxxx
Title: Vice President
JPMORGAN CHASE BANK, NATIONAL
ASSOCIATION,
as Servicer
By: /s/ Xxxxxxx Xxxxx
------------------------------------
Name: Xxxxxxx Xxxxx
Title: Assistant Vice President
X.X. XXXXXX TRUST COMPANY, NATIONAL
ASSOCIATION, as Custodian
By: /s/ Xxxxxx X. Xxxxxxx
------------------------------------
Name: Xxxxxx X. Xxxxxxx
Title: Vice President
SCHEDULE I
Mortgage Loan Schedule
[Available Upon Request to the Trustee]
SCHEDULE II
GSAMP Mortgage Loan Trust 2005-HE2,
Mortgage Pass-Through Certificates
Representations and Warranties of Countrywide Home Loans Servicing LP, as
Servicer
Countrywide Home Loans Servicing LP ("Countrywide") hereby makes the
representations and warranties set forth in this Schedule II to the Depositor,
the Custodian and the Trustee, as of the Closing Date, or if so specified
herein, as of the Cut-off Date:
(1) Countrywide is duly organized as a limited partnership and is
validly existing and in good standing under the laws of the State of
Texas, and is licensed and qualified to transact any and all business
contemplated by this Pooling and Servicing Agreement to be conducted by
Countrywide in any state in which a Mortgaged Property securing a
Countrywide Serviced Mortgaged Loan 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 Countrywide
Serviced Mortgage Loan and to service each Countrywide Serviced Mortgage
Loan in accordance with the terms of this Pooling and Servicing Agreement;
(2) Countrywide has the full power and authority to service each
Countrywide Serviced Mortgage Loan, and to execute, deliver and perform,
and to enter into and consummate the transactions contemplated by this
Pooling and Servicing Agreement and has duly authorized by all necessary
action on the part of Countrywide the execution, delivery and performance
of this Pooling and Servicing Agreement; and this Pooling and Servicing
Agreement, assuming the due authorization, execution and delivery thereof
by the Depositor, the other Servicers and the Trustee, constitutes a
legal, valid and binding obligation of Countrywide, enforceable against
Countrywide in accordance with its terms, except to the extent 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 the equitable
defenses and to the discretion of the court before which any proceeding
therefor may be brought;
(3) The execution and delivery of this Pooling and Servicing
Agreement by Countrywide, the servicing of the Countrywide Serviced
Mortgage Loans by Countrywide hereunder, the consummation by Countrywide
of any other of the transactions herein contemplated, and the fulfillment
of or compliance with the terms hereof are in the ordinary course of
business of Countrywide and will not (A) result in a breach of any term or
provision of the organizational documents of Countrywide or (B) conflict
with, result in a breach, violation or acceleration of, or result in a
default under, the terms of any other material agreement or instrument to
which Countrywide is a party or by which it may be bound, or any statute,
order or regulation applicable to Countrywide of any court, regulatory
body, administrative agency or governmental body having jurisdiction over
Countrywide; and Countrywide is not a party to, bound by, or in breach or
violation of any indenture or other agreement or instrument, or subject to
or in violation of any statute, order or regulation of any court,
regulatory body, administrative agency or governmental body having
jurisdiction over it, which materially and adversely affects or, to
Countrywide's knowledge, would in the future materially and adversely
affect, (x) the ability of Countrywide to perform its obligations under
this Pooling and Servicing Agreement or (y) the business, operations,
financial condition, properties or assets of Countrywide taken as a whole;
(4) Countrywide is an approved seller/servicer for Xxxxxx Mae and an
approved servicer for Xxxxxxx Mac in good standing;
(5) No litigation is pending against Countrywide that would
materially and adversely affect the execution, delivery or enforceability
of this Pooling and Servicing Agreement or the ability of Countrywide to
service the Countrywide Serviced Mortgage Loans or to perform any of its
other obligations hereunder in accordance with the terms hereof;
(6) No consent, approval, authorization or order of any court or
governmental agency or body is required for the execution, delivery and
performance by Countrywide of, or compliance by Countrywide with, this
Pooling and Servicing Agreement or the consummation by Countrywide of the
transactions contemplated by this Pooling and Servicing Agreement, except
for such consents, approvals, authorizations or orders, if any, that have
been obtained prior to the Closing Date; and
(7) Countrywide covenants that its computer and other systems used
in servicing the Countrywide Serviced Mortgage Loans operate in a manner
such that Countrywide can service the Countrywide Serviced Mortgage Loans
in accordance with the terms of this Pooling and Servicing Agreement.
With respect to each Countrywide Serviced Mortgage Loan, to the
extent Countrywide serviced such Countrywide Serviced Mortgage Loan and to the
extent Countrywide provided monthly reports to the three credit repositories,
Countrywide has fully furnished, in accordance with the Fair Credit Reporting
Act and its implementing regulations, accurate and complete information (i.e.,
favorable and unfavorable) on its borrower credit files to Equifax, Experian,
and Trans Union Credit Information Company (three of the credit repositories),
on a monthly basis.
SCHEDULE III
GSAMP Mortgage Loan Trust 2005-HE2,
Mortgage Pass-Through Certificates
Representations and Warranties of JPMorgan Chase Bank, National Association,
as Servicer
JPMorgan Chase Bank, National Association ("JPMorgan") hereby makes
the representations and warranties set forth in this Schedule III to the
Depositor and the Trustee, as of the Closing Date, or if so specified herein, as
of the Cut-off Date:
(1) JPMorgan is a national banking association duly organized,
validly existing and in good standing under the federal laws of the United
States of America and is duly authorized and qualified to transact any and
all business contemplated by this Pooling and Servicing Agreement to be
conducted by JPMorgan in any state in which a Mortgaged Property securing
a JPMorgan Serviced Mortgage Loan 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 JPMorgan Serviced Mortgage
Loan and to service each JPMorgan Serviced Mortgage Loan in accordance
with the terms of this Pooling and Servicing Agreement;
(2) JPMorgan has the full power and authority to service each
JPMorgan Serviced Mortgage Loan, and to execute, deliver and perform, and
to enter into and consummate the transactions contemplated by this Pooling
and Servicing Agreement and has duly authorized by all necessary action on
the part of JPMorgan the execution, delivery and performance of this
Pooling and Servicing Agreement; and this Pooling and Servicing Agreement,
assuming the due authorization, execution and delivery thereof by the
Depositor, the other Servicers and the Trustee, constitutes a legal, valid
and binding obligation of JPMorgan, enforceable against JPMorgan in
accordance with its terms, except to the extent 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 the equitable
defenses and to the discretion of the court before which any proceeding
therefor may be brought;
(3) The execution and delivery of this Pooling and Servicing
Agreement by JPMorgan, the servicing of the JPMorgan Serviced Mortgage
Loans by JPMorgan hereunder, the consummation by JPMorgan of any other of
the transactions herein contemplated, and the fulfillment of or compliance
with the terms hereof are in the ordinary course of business of JPMorgan
and will not (A) result in a breach of any term or provision of the
organizational documents of JPMorgan or (B) conflict with, result in a
breach, violation or acceleration of, or result in a default under, the
terms of any other material agreement or instrument to which JPMorgan is a
party or by which it may be bound, or any statute, order or regulation
applicable to JPMorgan of any court, regulatory body, administrative
agency or governmental body having jurisdiction over JPMorgan; and
JPMorgan is not a party to, bound by, or in breach or violation of any
indenture or other agreement or instrument, or subject to or in violation
of any statute, order or regulation of any court, regulatory body,
administrative agency or governmental body having jurisdiction over it,
which materially and adversely affects or, to JPMorgan's knowledge, would
in the future materially and adversely affect, (x) the ability of JPMorgan
to perform its obligations under this Pooling and Servicing Agreement or
(y) the business, operations, financial condition, properties or assets of
JPMorgan taken as a whole;
(4) JPMorgan is an approved seller/servicer for Xxxxxx Xxx, an
approved servicer for Xxxxxxx Mac in good standing and is a HUD approved
non-supervised mortgagee;
(5) No litigation is pending against JPMorgan that would materially
and adversely affect the execution, delivery or enforceability of this
Pooling and Servicing Agreement or the ability of JPMorgan to service the
JPMorgan Serviced Mortgage Loans or to perform any of its other
obligations hereunder in accordance with the terms hereof;
(6) No consent, approval, authorization or order of any court or
governmental agency or body is required for the execution, delivery and
performance by JPMorgan of, or compliance by JPMorgan with, this Pooling
and Servicing Agreement or the consummation by JPMorgan of the
transactions contemplated by this Pooling and Servicing Agreement, except
for such consents, approvals, authorizations or orders, if any, that have
been obtained prior to the Closing Date; and
(7) JPMorgan has the facilities, procedures and experienced
personnel necessary for the sound servicing of mortgage loans of the same
type as the JPMorgan Serviced Mortgage Loans.
With respect to each JPMorgan Serviced Mortgage Loan, to the extent
JPMorgan serviced such JPMorgan Serviced Mortgage Loan and to the extent
JPMorgan provided monthly reports to the three credit repositories, JPMorgan has
fully furnished, in accordance with the Fair Credit Reporting Act and its
implementing regulations, accurate and complete information (i.e., favorable and
unfavorable) on its borrower credit files to Equifax, Experian, and Trans Union
Credit Information Company (three of the credit repositories), on a monthly
basis.
SCHEDULE IV
GSAMP Mortgage Loan Trust 2005-HE2,
Mortgage Pass-Through Certificates
Representations and Warranties of X.X. Xxxxxx Trust Company, National
Association, as Custodian
X.X. Xxxxxx Trust Company, National Association ("Custodian") hereby
makes the representations and warranties set forth in this Schedule IV to the
Depositor, Countrywide and the Trustee, as of the Closing Date, or if so
specified herein, as of the Cut-off Date:
(1) Custodian is a national banking association duly organized,
validly existing and in good standing under the federal laws of the United
States of America and is duly authorized and qualified to transact any and
all business contemplated by this Pooling and Servicing Agreement to be
conducted by Custodian;
(2) Custodian has the full power and authority to execute, deliver
and perform, and to enter into and consummate the transactions
contemplated by this Pooling and Servicing Agreement and has duly
authorized by all necessary action on the part of Custodian the execution,
delivery and performance of this Pooling and Servicing Agreement; and this
Pooling and Servicing Agreement, assuming the due authorization, execution
and delivery thereof by the Depositor, the other Servicers and the
Trustee, constitutes a legal, valid and binding obligation of Custodian,
enforceable against Custodian in accordance with its terms, except to the
extent 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 the
equitable defenses and to the discretion of the court before which any
proceeding therefor may be brought;
(3) The execution and delivery of this Pooling and Servicing
Agreement by Custodian, the consummation by Custodian of any other of the
transactions herein contemplated, and the fulfillment of or compliance
with the terms hereof are in the ordinary course of business of Custodian
and will not (A) result in a breach of any term or provision of the
organizational documents of Custodian or (B) conflict with, result in a
breach, violation or acceleration of, or result in a default under, the
terms of any other material agreement or instrument to which Custodian is
a party or by which it may be bound, or any statute, order or regulation
applicable to Custodian of any court, regulatory body, administrative
agency or governmental body having jurisdiction over Custodian; and
Custodian is not a party to, bound by, or in breach or violation of any
indenture or other agreement or instrument, or subject to or in violation
of any statute, order or regulation of any court, regulatory body,
administrative agency or governmental body having jurisdiction over it,
which materially and adversely affects or, to Custodian's knowledge, would
in the future materially and adversely affect, (x) the ability of
Custodian to perform its obligations under this Pooling and Servicing
Agreement or (y) the business, operations, financial condition, properties
or assets of Custodian taken as a whole;
(4) No litigation is pending against Custodian that would materially
and adversely affect the execution, delivery or enforceability of this
Pooling and Servicing Agreement or the ability of Custodian to perform any
of its obligations hereunder in accordance with the terms hereof; and
(5) No consent, approval, authorization or order of any court or
governmental agency or body is required for the execution, delivery and
performance by Custodian of, or compliance by Custodian with, this Pooling
and Servicing Agreement or the consummation by Custodian of the
transactions contemplated by this Pooling and Servicing Agreement, except
for such consents, approvals, authorizations or orders, if any, that have
been obtained prior to the Closing Date.
EXHIBIT A-1
FORM OF CLASS A, CLASS M AND CLASS B CERTIFICATES
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.
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS AN
INTEREST IN 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.
AS LONG AS THE INTEREST RATE SWAP AGREEMENT IS IN EFFECT, EACH BENEFICIAL OWNER
OF THIS CERTIFICATE, OR ANY INTEREST THEREIN, SHALL BE DEEMED TO HAVE
REPRESENTED THAT EITHER (I) IT IS NOT AN EMPLOYEE BENEFIT PLAN OR ARRANGEMENT
SUBJECT TO SECTION 406 OF ERISA, 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, NOR A PERSON ACTING ON
BEHALF OF ANY SUCH PLAN OR ARRANGEMENT NOR USING THE ASSETS OF ANY SUCH PLAN OR
ARRANGEMENT OR (II) THE ACQUISITION AND HOLDING OF THIS CERTIFICATE ARE ELIGIBLE
FOR THE EXEMPTIVE RELIEF AVAILABLE UNDER AT LEAST ONE OF PROHIBITED TRANSACTION
CLASS EXEMPTION ("PTCE") 84-14, XXXX 00-0, XXXX 00-0, XXXX 95-60 OR PTCE 96-23
OR A COMPARABLE EXEMPTION AVAILABLE UNDER SIMILAR LAW.
Certificate No. :
Cut-off Date : March 1, 2005
First Distribution Date : April 25, 2005
Initial Certificate Balance
of this Certificate
("Denomination") :
Initial Certificate
Balances of all Class Certificate
Certificates of this Class : Class Balance
Class A-1 $297,636,000
Class A-2 $169,463,000
Class A-3 $79,117,000
Class M-1 $49,720,000
Class M-2 $40,265,000
Class M-3 $11,555,000
Class B-1 $10,154,000
Class B-2 $ 8,403,000
Class B-3 $ 8,754,000
Class B-4 $ 9,804,000
CUSIP : Class CUSIP No.
Class A-1 36242D A2 9
Class A-2 36242D A3 7
Class A-3 36242D A4 5
Class M-1 36242D A5 2
Class M-2 36242D A6 0
Class M-3 36242D A7 8
Class B-1 36242D A8 6
Class B-2 36242D A9 4
Class B-3 36242D B2 8
Class B-4 36242D B3 6
ISIN : Class ISIN
Class A-1 US36242DA299
Class A-2 US36242DA372
Class A-3 US36242DA455
Class M-1 US36242DA521
Class M-2 US36242DA604
Class M-3 US36242DA786
Class B-1 US36242DA869
Class B-2 US36242DA943
Class B-3 US36242DB289
Class B-4 US36242DB362
GS MORTGAGE SECURITIES CORP.
GSAMP Trust 2005-HE2
Mortgage Pass-Through Certificates, Series 2005-HE2
[Class A-] [Class M-] [Class B-]
evidencing a percentage interest in the distributions allocable to
the Certificates of the above-referenced Class.
Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Balance at any time may be less
than the Certificate 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 Servicers, the Purchaser, the Original Loan Sellers 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 of the denominations of all
Certificates of the Class to which this Certificate belongs) in certain monthly
distributions pursuant to a Pooling and Servicing Agreement, dated as of the
Cutt-Off Date specified above (the "Agreement"), among GS Mortgage Securities
Corp., as depositor (the "Depositor"), Countrywide Home Loans Servicing LP, as
servicer, JPMorgan Chase Bank, National Association, as servicer (collectively,
the "Servicers"), X.X. Xxxxxx Trust Company, National Association, as custodian,
and Deutsche Bank National Trust Company, 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 authenticated by an
authorized signatory of the Trustee.
* * *
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated:
DEUTSCHE BANK NATIONAL TRUST
COMPANY,
not in its individual capacity, but
solely as Trustee
By:
--------------------------------------
Authenticated:
By:
-----------------------------------
Authorized Signatory of
DEUTSCHE BANK NATIONAL TRUST COMPANY,
not in its individual capacity,
but solely as Trustee
GS MORTGAGE SECURITIES CORP.
GSAMP Trust 2005-HE2
Mortgage Pass-Through Certificates
This Certificate is one of a duly authorized issue of Certificates
designated as GSAMP Trust 2005-HE2 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 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 for each
Distribution Date is the last Business Day of the applicable Interest Accrual
Period for the related Distribution Date; provided, however, that for any
Definitive Certificates, the Record Date shall be the last Business Day of the
month immediately preceding the month of such Distribution Date (or if such day
is not a Business Day, on the immediately preceding Business Day).
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 offices designated by the Trustee for such
purposes, 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 Depositor, the Servicers 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 offices designated by the Trustee for such
purposes, 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 and the Trustee and any agent of the Depositor 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 Trustee, nor any
such agent shall be affected by any notice to the contrary.
On any Distribution Date on which the aggregate Stated Principal
Balance of the Mortgage Loans is less than or equal to 10% of the Cut-off Date
Pool Principal Balance, the Person specified in Section 9.01 of the Agreement
will have the option to repurchase, in whole, from the Trust Fund all remaining
Mortgage Loans and all property acquired in respect of the Mortgage Loans at a
purchase price determined as provided in the Agreement. The obligations and
responsibilities created by the Agreement will terminate as provided in Section
9.01 of 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 _____________________.
Applicable statements should be mailed to______________________________________,
_______________________________________________________________________________.
This information is provided by____________________________________,
the assignee named above, or___________________________________________________,
as its agent.
EXHIBIT B
FORM OF CLASS P CERTIFICATE
NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
PROPOSED TRANSFEROR DELIVERS TO THE TRUSTEE A TRANSFEROR LETTER IN THE FORM OF
EXHIBIT H TO THE AGREEMENT REFERRED TO HEREIN AND EITHER (i) THE TRUSTEE
RECEIVES A RULE 144A LETTER IN THE FORM OF EXHIBIT I TO THE AGREEMENT REFERRED
TO HEREIN OR (ii) THE TRUSTEE RECEIVES AN OPINION OF COUNSEL, DELIVERED AT THE
EXPENSE OF THE TRANSFEROR, THAT SUCH TRANSFER MAY BE MADE WITHOUT REGISTRATION
UNDER THE SECURITIES ACT OF 1933, AS AMENDED.
NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
TRANSFEREE DELIVERS TO THE TRUSTEE A REPRESENTATION LETTER TO THE EFFECT THAT
SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR A PLAN
SUBJECT TO SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO APPLICABLE FEDERAL,
STATE OR LOCAL LAW ("SIMILAR LAW") MATERIALLY SIMILAR TO THE FOREGOING
PROVISIONS OF ERISA OR THE CODE, OR A PERSON INVESTING ON BEHALF OF OR WITH PLAN
ASSETS OF SUCH A PLAN. NOTWITHSTANDING ANYTHING ELSE TO THE CONTRARY HEREIN, ANY
PURPORTED TRANSFER OF THIS CERTIFICATE TO OR ON BEHALF OF AN EMPLOYEE BENEFIT
PLAN SUBJECT TO TITLE I OF ERISA, SECTION 4975 OF THE CODE OR SIMILAR LAW
WITHOUT THE REPRESENTATION LETTER SATISFACTORY TO THE TRUSTEE AS DESCRIBED ABOVE
SHALL BE VOID AND OF NO EFFECT.
Certificate No. : 1
Cut-off Date : March 1, 2005
First Distribution Date : April 25, 2005
Percentage Interest of
this Certificate
("Denomination") : 100%
CUSIP : 36242D G8 0
ISIN : US36242DG809
GS MORTGAGE SECURITIES CORP.
GSAMP Trust 2005-HE2
Mortgage Pass-Through Certificates, Series 2005-HE2
Class P
evidencing a percentage interest in the distributions allocable to
the Certificates of the above-referenced Class.
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 Servicers 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 of the denominations of all Certificates of
the Class to which this Certificate belongs) in certain monthly distributions
pursuant to a Pooling and Servicing Agreement dated as of the Cutt-Off date
specified above (the "Agreement"), among GS Mortgage Securities Corp., as
depositor (the "Depositor"), Countrywide Home Loans Servicing LP, as servicer,
JPMorgan Chase Bank, National Association, as servicer (collectively, the
"Servicers"), X.X. Xxxxxx Trust Company, National Association, as custodian, and
Deutsche Bank National Trust Company, 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.
This Certificate does not have a Pass-Through Rate and will be
entitled to distributions only to the extent set forth in the Agreement. In
addition, any distribution of the proceeds of any remaining assets of the Trust
will be made only upon presentment and surrender of this Certificate at the
offices designated by the Trustee for such purpose.
No transfer of a Certificate of this Class shall be made unless such
disposition is exempt from the registration requirements of the Securities Act
of 1933, as amended (the "1933 Act"), and any applicable state securities laws
or is made in accordance with the 1933 Act and such laws. In the event of any
such transfer, the Trustee shall require the transferor to execute a transferor
certificate (in substantially the form attached to the Pooling and Servicing
Agreement) and deliver either (i) a Rule 144A Letter, in either case
substantially in the form attached to the Agreement, or (ii) a written Opinion
of Counsel to the Trustee that such transfer may be made pursuant to an
exemption, describing the applicable exemption and the basis therefor, from the
1933 Act or is being made pursuant to the 1933 Act, which Opinion of Counsel
shall be an expense of the transferor.
No transfer of a Certificate of this Class 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 any materially
similar provisions of applicable Federal, state or local law ("Similar Law"), or
a person acting on behalf of or investing plan assets of any such plan, which
representation letter shall not be an expense of the Trustee.
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 authenticated by an
authorized signatory of the Trustee.
* * *
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly executed.
Dated:
DEUTSCHE BANK NATIONAL TRUST
COMPANY,
not in its individual capacity,
but solely as Trustee
By:
--------------------------------------
Authenticated:
By
------------------------------------
Authorized Signatory of
DEUTSCHE BANK NATIONAL TRUST COMPANY,
not in its individual capacity,
but solely as Trustee
GS MORTGAGE SECURITIES CORP.
GSAMP Trust 2005-HE2
Mortgage Pass-Through Certificates
This Certificate is one of a duly authorized issue of Certificates
designated as GSAMP Trust 2005-HE2 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 for each
Distribution Date is the last Business Day of the applicable Interest Accrual
Period for the related Distribution Date; provided, however, that for any
Definitive Certificates, the Record Date shall be the last Business Day of the
month immediately preceding the month of such Distribution Date (or if such day
is not a Business Day, on the immediately preceding Business Day).
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 offices designated by the Trustee for such
purposes 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 Depositor, the Servicers 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 offices designated by the Trustee for such
purposes, 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 and the Trustee and any agent of the Depositor 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 Trustee, nor any
such agent shall be affected by any notice to the contrary.
On any Distribution Date on which the aggregate Stated Principal
Balance of the Mortgage Loans is less than or equal to 10% of the Cut-off Date
Pool Principal Balance, the Person specified in Section 9.01 of the Agreement
will have the option to repurchase, in whole, from the Trust Fund all remaining
Mortgage Loans and all property acquired in respect of the Mortgage Loans at a
purchase price determined as provided in the Agreement. The obligations and
responsibilities created by the Agreement will terminate as provided in Section
9.01 of 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 _____________________.
Applicable statements should be mailed to______________________________________,
_______________________________________________________________________________.
This information is provided by____________________________________,
the assignee named above, or___________________________________________________,
as its agent.
EXHIBIT C-1
FORM OF CLASS R-1 CERTIFICATE
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "RESIDUAL
INTEREST" IN THREE "REAL ESTATE MORTGAGE INVESTMENT CONDUITS," AS THOSE TERMS
ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE
CODE OF 1986, AS AMENDED (THE "CODE").
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.
NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
TRANSFEREE DELIVERS TO THE TRUSTEE 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 A PLAN SUBJECT TO MATERIALLY SIMILAR PROVISIONS
OF APPLICABLE FEDERAL, STATE OR LOCAL LAW ("SIMILAR LAW") OR A PERSON INVESTING
ON BEHALF OF OR WITH PLAN ASSETS OF SUCH A PLAN. IN THE EVENT THAT SUCH
REPRESENTATION IS VIOLATED, OR ANY ATTEMPT IS MADE TO TRANSFER TO A PLAN OR
ARRANGEMENT SUBJECT TO SECTION 406 OF ERISA, A PLAN SUBJECT TO SECTION 4975 OF
THE CODE OR A PLAN SUBJECT TO SIMILAR LAW, OR A PERSON ACTING ON BEHALF OF ANY
SUCH PLAN OR ARRANGEMENT OR USING THE ASSETS OF ANY SUCH PLAN OR ARRANGEMENT,
SUCH ATTEMPTED TRANSFER OR ACQUISITION SHALL BE VOID AND OF NO EFFECT.
Certificate No. : 1
Cut-off Date : March 1, 2005
First Distribution Date : April 25, 2005
Initial Certificate Balance
of this Certificate
("Denomination") : $100
Initial Certificate Balance
of all Certificates of this
Class : $100
CUSIP : 36242D G5 6
ISIN : US36242DG569
GS MORTGAGE SECURITIES CORP.
GSAMP Trust 2005-HE2
Mortgage Pass-Through Certificates, Series 2005-HE2
Class R-1
evidencing a percentage interest in the distributions allocable to
the Certificates of the above-referenced Class.
Distributions in respect of this Certificate are distributable
monthly as set forth herein. This Class R-1 Certificate is not entitled to
distributions in respect of interest. This Certificate does not evidence an
obligation of, or an interest in, and is not guaranteed by the Depositor, the
Servicers, 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 specified above of any monthly distributions due to the
Class R-1 Certificates pursuant to a Pooling and Servicing Agreement dated as of
the Cut-Off Date specified above (the "Agreement"), among GS Mortgage Securities
Corp., as depositor (the "Depositor"), Countrywide Home Loans Servicing LP, as
servicer, JPMorgan Chase Bank, National Association, as servicer (collectively,
the "Servicers"), X.X. Xxxxxx Trust Company, National Association, as custodian,
and Deutsche Bank National Trust Company, 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 R-1
Certificate at the offices designated by the Trustee for such purposes.
No transfer of a Class R-1 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 or
arrangement subject to Section 406 of ERISA, a plan or arrangement subject to
Section 4975 of the Code or a plan subject to Similar Law, or 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, which representation letter shall not be an
expense of the Trustee, the Servicer or the Trust Fund. In the event that such
representation is violated, or any attempt is made to transfer to a plan or
arrangement subject to Section 406 of ERISA or a plan subject to Section 4975 of
the Code or a plan subject to Similar Law, or a person acting on behalf of any
such plan or arrangement or using the assets of any such plan or arrangement,
such attempted transfer or acquisition shall be void and of no effect.
Each Holder of this Class R-1 Certificate shall be deemed by the
acceptance or acquisition an Ownership Interest in this Class R-1 Certificate to
have agreed to be bound by the following provisions, and the rights of each
Person acquiring any Ownership Interest in this Class R-1 Certificate are
expressly subject to the following provisions: (i) each Person holding or
acquiring any Ownership Interest in this Class R-1 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 this Class R-1 Certificate may be registered on the Closing Date or
thereafter transferred, and the Trustee shall not register the Transfer of this
Certificate unless, in addition to the certificates required to be delivered to
the Trustee under Section 5.02(b) of the Agreement, the Trustee shall have been
furnished with a Transfer Affidavit of the initial owner or the proposed
transferee in the form attached as Exhibit G to the Agreement, (iii) each Person
holding or acquiring any Ownership Interest in this Class R-1 Certificate shall
agree (A) to obtain a Transfer Affidavit from any other Person to whom such
Person attempts to Transfer its Ownership Interest this Class R-1 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 this
Class R-1 Certificate, (C) not to cause income with respect to the Class R-1
Certificate to be attributable to a foreign permanent establishment or fixed
base, within the meaning of an applicable income tax treaty, of such Person or
any other U.S. Person and (D) not to Transfer the Ownership Interest in this
Class R-1 Certificate or to cause the Transfer of the Ownership Interest in this
Class R-1 Certificate to any other Person if it has actual knowledge that such
Person is not a Permitted Transferee and (iv) any attempted or purported
Transfer of the Ownership Interest in this Class R-1 Certificate in violation of
the provisions herein shall be absolutely null and void and shall 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 authenticated by an
authorized signatory of the Trustee.
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly executed.
Dated:
DEUTSCHE BANK NATIONAL TRUST
COMPANY,
not in its individual capacity,
but solely as Trustee
By:
--------------------------------------
Authenticated:
By
---------------------------------
Authorized Signatory of
DEUTSCHE BANK NATIONAL TRUST COMPANY,
not in its individual capacity,
but solely as Trustee
GS MORTGAGE SECURITIES CORP.
GSAMP Trust 2005-HE2
Mortgage Pass-Through Certificates
This Certificate is one of a duly authorized issue of Certificates
designated as GSAMP Trust 2005-HE2 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 and the other parties to the Agreement.
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 for each
Distribution Date is the last Business Day of the month immediately preceding
the month in which such Distribution Date occurs.
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 offices designated by the Trustee for such
purposes 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 Depositor, the Servicers 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 offices designated by the Trustee for such
purposes, 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 Trustee and the Depositor and any agent of the Trustee or the
Depositor may treat the Person in whose name this Certificate is registered as
the owner hereof for all purposes, and neither the Depositor, the Trustee, nor
any such agent shall be affected by any notice to the contrary.
On any Distribution Date on which the aggregate Stated Principal
Balance of the Mortgage Loans is less than or equal to 10% of the Cut-off Date
Pool Principal Balance, the Person specified in Section 9.01 of the Agreement
will have the option to repurchase, in whole, from the Trust Fund all remaining
Mortgage Loans and all property acquired in respect of the Mortgage Loans at a
purchase price determined as provided in the Agreement. The obligations and
responsibilities created by the Agreement will terminate as provided in Section
9.01 of 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 _____________________.
Applicable statements should be mailed to______________________________________,
_______________________________________________________________________________.
This information is provided by____________________________________,
the assignee named above, or___________________________________________________,
as its agent.
EXHIBIT C-2
FORM OF CLASS R-2 CERTIFICATE
SOLELY 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").
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.
NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
TRANSFEREE DELIVERS TO THE TRUSTEE 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 A PLAN SUBJECT TO MATERIALLY SIMILAR PROVISIONS
OF APPLICABLE FEDERAL, STATE OR LOCAL LAW ("SIMILAR LAW") OR A PERSON INVESTING
ON BEHALF OF OR WITH PLAN ASSETS OF SUCH A PLAN. IN THE EVENT THAT SUCH
REPRESENTATION IS VIOLATED, OR ANY ATTEMPT IS MADE TO TRANSFER TO A PLAN OR
ARRANGEMENT SUBJECT TO SECTION 406 OF ERISA, A PLAN SUBJECT TO SECTION 4975 OF
THE CODE OR A PLAN SUBJECT TO SIMILAR LAW, OR A PERSON ACTING ON BEHALF OF ANY
SUCH PLAN OR ARRANGEMENT OR USING THE ASSETS OF ANY SUCH PLAN OR ARRANGEMENT,
SUCH ATTEMPTED TRANSFER OR ACQUISITION SHALL BE VOID AND OF NO EFFECT.
Certificate No. : 1
Cut-off Date : March 1, 2005
First Distribution Date : April 25, 2005
Initial Certificate Balance
of this Certificate
("Denomination") : $100
Initial Certificate Balances
of all Certificates of this
Class : $100
CUSIP : 36242D G6 4
ISIN : US36242DG643
GS MORTGAGE SECURITIES CORP.
GSAMP Trust 2005-HE2
Mortgage Pass-Through Certificates, Series 2005-HE2
Class R-2
evidencing a percentage interest in the distributions allocable to
the Certificates of the above-referenced Class.
Distributions in respect of this Certificate are distributable
monthly as set forth herein. This Class R-2 Certificate is not entitled to
distributions in respect of interest. This Certificate does not evidence an
obligation of, or an interest in, and is not guaranteed by the Depositor, the
Servicers, 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 specified above of any monthly distributions due to the
Class R-2 Certificates pursuant to a Pooling and Servicing Agreement dated as of
the Cutt-Off Date specified above (the "Agreement"), among GS Mortgage
Securities Corp., as depositor (the "Depositor"), Countrywide Home Loans
Servicing LP, as servicer, JPMorgan Chase Bank, National Association, as
servicer (collectively, the "Servicers"), X.X. Xxxxxx Trust Company, National
Association, as custodian, and Deutsche Bank National Trust Company, 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 R-2
Certificate at the offices designated by the Trustee for such purposes.
No transfer of a Class R-2 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 or
arrangement subject to Section 406 of ERISA, a plan or arrangement subject to
Section 4975 of the Code or a plan subject to Similar Law, or 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, which representation letter shall not be an
expense of the Trustee, the Servicer or the Trust Fund. In the event that such
representation is violated, or any attempt is made to transfer to a plan or
arrangement subject to Section 406 of ERISA or a plan subject to Section 4975 of
the Code or a plan subject to Similar Law, or a person acting on behalf of any
such plan or arrangement or using the assets of any such plan or arrangement,
such attempted transfer or acquisition shall be void and of no effect.
Each Holder of this Class R-2 Certificate shall be deemed by the
acceptance or acquisition an Ownership Interest in this Class R-2 Certificate to
have agreed to be bound by the following provisions, and the rights of each
Person acquiring any Ownership Interest in this Class R-2 Certificate are
expressly subject to the following provisions: (i) each Person holding or
acquiring any Ownership Interest in this Class R-2 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 this Class R-2 Certificate may be registered on the Closing Date or
thereafter transferred, and the Trustee shall not register the Transfer of this
Certificate unless, in addition to the certificates required to be delivered to
the Trustee under Section 5.02(b) of the Agreement, the Trustee shall have been
furnished with a Transfer Affidavit of the initial owner or the proposed
transferee in the form attached as Exhibit G to the Agreement, (iii) each Person
holding or acquiring any Ownership Interest in this Class R-2 Certificate shall
agree (A) to obtain a Transfer Affidavit from any other Person to whom such
Person attempts to Transfer its Ownership Interest this Class R-2 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 this
Class R-2 Certificate, (C) not to cause income with respect to the Class R-2
Certificate to be attributable to a foreign permanent establishment or fixed
base, within the meaning of an applicable income tax treaty, of such Person or
any other U.S. Person and (D) not to Transfer the Ownership Interest in this
Class R-2 Certificate or to cause the Transfer of the Ownership Interest in this
Class R-2 Certificate to any other Person if it has actual knowledge that such
Person is not a Permitted Transferee and (iv) any attempted or purported
Transfer of the Ownership Interest in this Class R-2 Certificate in violation of
the provisions herein shall be absolutely null and void and shall 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 authenticated by an
authorized signatory of the Trustee.
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated:
DEUTSCHE BANK NATIONAL TRUST
COMPANY,
not in its individual capacity,
but solely as Trustee
By:
--------------------------------------
Authenticated:
By
-------------------------------------
Authorized Signatory of
DEUTSCHE BANK NATIONAL TRUST COMPANY,
not in its individual capacity,
but solely as Trustee
GS MORTGAGE SECURITIES CORP.
GSAMP Trust 2005-HE2
Mortgage Pass-Through Certificates
This Certificate is one of a duly authorized issue of Certificates
designated as GSAMP Trust 2005-HE2 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 for each
Distribution Date is the last Business Day of the applicable Interest Accrual
Period for the related Distribution Date; provided, however, that for any
Definitive Certificates, the Record Date shall be the last Business Day of the
month immediately preceding the month of such Distribution Date (or if such day
is not a Business Day, on the immediately preceding Business Day).
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 offices designated by the Trustee for such
purposes 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 Depositor, the Servicers 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 offices designated by the Trustee for such
purposes, 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 and the Trustee and any agent of the Depositor 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 Trustee, nor any
such agent shall be affected by any notice to the contrary.
On any Distribution Date on which the aggregate Stated Principal
Balance of the Mortgage Loans is less than or equal to 10% of the Cut-off Date
Pool Principal Balance, the Person specified in Section 9.01 of the Agreement
will have the option to repurchase, in whole, from the Trust Fund all remaining
Mortgage Loans and all property acquired in respect of the Mortgage Loans at a
purchase price determined as provided in the Agreement. The obligations and
responsibilities created by the Agreement will terminate as provided in Section
9.01 of 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 _____________________.
Applicable statements should be mailed to______________________________________,
_______________________________________________________________________________.
This information is provided by____________________________________,
the assignee named above, or___________________________________________________,
as its agent.
EXHIBIT D
FORM OF CLASS X CERTIFICATE
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS TWO
"REGULAR INTERESTS" 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.
NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
PROPOSED TRANSFEROR DELIVERS TO THE TRUSTEE A TRANSFEROR LETTER IN THE FORM OF
EXHIBIT H TO THE AGREEMENT REFERRED TO HEREIN AND EITHER (i) THE TRUSTEE
RECEIVES A RULE 144A LETTER IN THE FORM OF EXHIBIT I TO THE AGREEMENT REFERRED
TO HEREIN OR (ii) THE TRUSTEE RECEIVES AN OPINION OF COUNSEL, DELIVERED AT THE
EXPENSE OF THE TRANSFEROR, THAT SUCH TRANSFER MAY BE MADE WITHOUT REGISTRATION
UNDER THE SECURITIES ACT OF 1933, AS AMENDED.
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 TITLE I OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR A PLAN
SUBJECT TO SECTION 4975 OF THE CODE, OR A PLAN SUBJECT TO APPLICABLE FEDERAL,
STATE OR LOCAL LAW ("SIMILAR LAW") MATERIALLY SIMILAR TO THE FOREGOING
PROVISIONS OF ERISA OR THE CODE OR A PERSON INVESTING ON BEHALF OF OR WITH PLAN
ASSETS OF SUCH A PLAN, 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, TO THE EFFECT THAT THE PURCHASE OR HOLDING OF THIS
CERTIFICATE WILL NOT CONSTITUTE OR RESULT IN A PROHIBITED TRANSACTION WITHIN THE
MEANING OF ERISA, SECTION 4975 OF THE CODE OR ANY SIMILAR LAW AND WILL NOT
SUBJECT THE TRUSTEE, THE DEPOSITOR 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 TITLE I
OF ERISA, SECTION 4975 OF THE CODE OR SIMILAR LAW WITHOUT THE REPRESENTATION
LETTER OR OPINION OF COUNSEL SATISFACTORY TO THE TRUSTEE AS DESCRIBED ABOVE
SHALL BE VOID AND OF NO EFFECT.
Certificate No. :
Cut-off Date : March 1, 2005
First Distribution Date : April 25, 2005
Percentage Interest of this
Certificate ("Denomination") :
CUSIP : 36242D G7 2
ISIN: : US36242DG726
GS MORTGAGE SECURITIES CORP.
GSAMP Trust 2005-HE2
Mortgage Pass-Through Certificates, Series 2005-HE2
Class X
evidencing a percentage interest in the distributions allocable to
the Certificates of the above-referenced Class.
Distributions in respect of this Certificate are distributable
monthly as set forth herein. This Class X Certificate has no Certificate Balance
and is not entitled to distributions in respect of principal or interest. This
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Servicers, the Purchaser, the Original Loan
Sellers 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 specified above of any monthly distributions due to the Class X
Certificates pursuant to a Pooling and Servicing Agreement dated as of the
Cutt-Off Date specified above (the "Agreement"), among GS Mortgage Securities
Corp., as depositor (the "Depositor"), Countrywide Home Loans Servicing LP, as
servicer, JPMorgan Chase Bank, National Association, as servicer (collectively,
the "Servicers"), X.X. Xxxxxx Trust Company, National Association, as custodian,
and Deutsche Bank National Trust Company, 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 X
Certificate at the offices designated by the Trustee for such purposes.
No transfer of a Class X 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 or
arrangement subject to Section 406 of ERISA, a plan or arrangement subject to
Section 4975 of the Code or a plan subject to Similar Law, or 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, which representation letter shall not be an
expense of the Trustee, the Servicer or the Trust Fund. In the event that such
representation is violated, or any attempt is made to transfer to a plan or
arrangement subject to Section 406 of ERISA or a plan subject to Section 4975 of
the Code or a plan subject to Similar Law, or a person acting on behalf of any
such plan or arrangement or using the assets of any such plan or arrangement,
such attempted transfer or acquisition shall be void and of no effect.
Each Holder of this Class X Certificate shall be deemed by the
acceptance or acquisition an Ownership Interest in this Class X Certificate to
have agreed to be bound by the following provisions, and the rights of each
Person acquiring any Ownership Interest in this Class X Certificate are
expressly subject to the following provisions: (i) each Person holding or
acquiring any Ownership Interest in this Class X 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 this Class X Certificate may be registered on the Closing Date or
thereafter transferred, and the Trustee shall not register the Transfer of this
Certificate unless, in addition to the certificates required to be delivered to
the Trustee under Section 5.02(b) of the Agreement, the Trustee shall have been
furnished with a Transfer Affidavit of the initial owner or the proposed
transferee in the form attached as Exhibit G to the Agreement, (iii) each Person
holding or acquiring any Ownership Interest in this Class X Certificate shall
agree (A) to obtain a Transfer Affidavit from any other Person to whom such
Person attempts to Transfer its Ownership Interest this Class X 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 this Class X
Certificate, (C) not to cause income with respect to the Class X Certificate to
be attributable to a foreign permanent establishment or fixed base, within the
meaning of an applicable income tax treaty, of such Person or any other U.S.
Person and (D) not to Transfer the Ownership Interest in this Class X
Certificate or to cause the Transfer of the Ownership Interest in this Class X
Certificate to any other Person if it has actual knowledge that such Person is
not a Permitted Transferee and (iv) any attempted or purported Transfer of the
Ownership Interest in this Class X Certificate in violation of the provisions
herein shall be absolutely null and void and shall 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 authenticated by an
authorized signatory of the Trustee.
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated:
DEUTSCHE BANK NATIONAL TRUST
COMPANY,
not in its individual capacity,
but solely as Trustee
By:
--------------------------------------
Authenticated:
By
-----------------------------------
Authorized Signatory of
DEUTSCHE BANK NATIONAL TRUST COMPANY,
not in its individual capacity,
but solely as Trustee
GS MORTGAGE SECURITIES CORP.
GSAMP Trust 2005-HE2
Mortgage Pass-Through Certificates
This Certificate is one of a duly authorized issue of Certificates
designated as GSAMP Trust 2005-HE2 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 for each
Distribution Date is the last Business Day of the applicable Interest Accrual
Period for the related Distribution Date; provided, however, that for any
Definitive Certificates, the Record Date shall be the last Business Day of the
month immediately preceding the month of such Distribution Date (or if such day
is not a Business Day, on the immediately preceding Business Day).
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 offices designated by the Trustee for such
purposes 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 Depositor, the Servicers 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 offices designated by the Trustee for such
purposes, 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 Servicers and the Trustee and any agent of the
Depositor 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
Trustee, nor any such agent shall be affected by any notice to the contrary.
On any Distribution Date on which the aggregate Stated Principal
Balance of the Mortgage Loans is less than or equal to 10% of the Cut-off Date
Pool Principal Balance, the Person specified in Section 9.01 of the Agreement
will have the option to repurchase, in whole, from the Trust Fund all remaining
Mortgage Loans and all property acquired in respect of the Mortgage Loans at a
purchase price determined as provided in the Agreement. The obligations and
responsibilities created by the Agreement will terminate as provided in Section
9.01 of 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 _____________________.
Applicable statements should be mailed to______________________________________,
_______________________________________________________________________________.
This information is provided by____________________________________,
the assignee named above, or___________________________________________________,
as its agent.
EXHIBIT E
FORM OF INITIAL CERTIFICATION OF [CUSTODIAN] [TRUSTEE]
[date]
[Depositor]
[Servicers](1)
[Trustee](2)
-------------------------
-------------------------
Re: Pooling and Servicing Agreement among GS Mortgage Securities
Corp., as Depositor, JPMorgan Chase Bank, National
Association, as Servicer, Countrywide Home Loans Servicing LP,
as Servicer, X.X. Xxxxxx Trust Company, National Association,
as Custodian, and Deutsche Bank National Trust Company, as
Trustee, GSAMP Trust, 2005-HE2
--------------------------------------------------------------
Gentlemen:
In accordance with Section 2.02 of the above-captioned Pooling and
Servicing Agreement (the "Pooling and Servicing Agreement"), the undersigned, as
[Custodian] [Trustee], for each Mortgage Loan listed in the Mortgage Loan
Schedule (other than any Mortgage Loan listed in the attached schedule of
exceptions), certifies that it has received:
(i) the original Mortgage Note, endorsed as provided in the
following form: "Pay to the order of ________, without recourse"; and
(ii) a duly executed Assignment of 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 [Custodian] [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 [Custodian] [Trustee] makes
no representations as to: (i) the validity, legality, sufficiency,
enforceability, recordability 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 or the perfection or priority of any
Mortgage. Notwithstanding anything herein to the contrary, the [Custodian]
[Trustee] has made no determination and makes no representations 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 or (ii) any assignment is in recordable form or sufficient to
effect the assignment of and transfer to the assignee thereof, under the
Mortgage to which the assignment relates.
Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Pooling and Servicing Agreement.
[X.X. XXXXXX TRUST COMPANY,
NATIONAL ASSOCIATION,
as Custodian
By:
--------------------------------------
Name:
------------------------------------
Title: ]
---------------------------------
[DEUTSCHE BANK NATIONAL TRUST
COMPANY,
as Trustee
By:
--------------------------------------
Name:
------------------------------------
Title: ]
---------------------------------
-------------
(1) JPMorgan and Countrywide in the certification provided by the Trustee, or
Countrywide in the certification provided by the Custodian.
(2) Only in the certification by the Custodian.
EXHIBIT F
FORM OF DOCUMENT CERTIFICATION
AND EXCEPTION REPORT OF [CUSTODIAN] [TRUSTEE]
[date]
[Depositor]
[Servicers](1)
[Trustee](2)
-------------------------
-------------------------
Re: Pooling and Servicing Agreement among GS Mortgage Securities
Corp., as Depositor, JPMorgan Chase Bank, National
Association, as Servicer, Countrywide Home Loans Servicing LP,
as Servicer, X.X. Xxxxxx Trust Company, National Association,
as Custodian, and Deutsche Bank National Trust Company, as
Trustee, GSAMP Trust, 2005-HE2
--------------------------------------------------------------
Gentlemen:
In accordance with Section 2.02 of the above-captioned Pooling and
Servicing Agreement (the "Pooling and Servicing Agreement"), the undersigned, as
[Custodian] [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 of the Pooling and Servicing Agreement, with all intervening
endorsements showing a complete chain of endorsement from the originator
to the last endorsee.
(ii) The original recorded Mortgage or a certified copy thereof.
(iii) A duly executed Assignment of Mortgage endorsed in blank
[2.01(b)(v)] in the form provided in Section 2.01 of the Pooling and
Servicing Agreement; or, if the [Custodian] [Trustee] has actual knowledge
that the related Mortgage has not been returned from the applicable
recording office, a copy of the Assignment of 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 last endorsee.
(v) The original or duplicate original or certified copy 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) and (13) of
the Mortgage Loan Schedule and the Data Tape Information accurately reflects
information set forth in the Custodial File.
The [Custodian] [Trustee] has made no independent examination of any
documents contained in each Mortgage File beyond the review of the Custodial
File specifically required in the Pooling and Servicing Agreement. The
[Custodian] [Trustee] makes no representations as to: (i) the validity,
legality, sufficiency, enforceability, recordability 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 or the
perfection or priority of any Mortgage. Notwithstanding anything herein to the
contrary, the [Custodian] [Trustee] has made no determination and makes no
representations 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 or (ii) any assignment is in recordable
form or sufficient to effect the assignment of and transfer to the assignee
thereof, under the Mortgage to which the assignment relates.
Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Pooling and Servicing Agreement.
[X.X. XXXXXX TRUST COMPANY,
NATIONAL ASSOCIATION,
as Custodian
By:
--------------------------------------
Name:
------------------------------------
Title: ]
---------------------------------
[DEUTSCHE BANK NATIONAL TRUST
COMPANY,
as Trustee
By:
--------------------------------------
Name:
------------------------------------
Title: ]
---------------------------------
-------------
(1) JPMorgan and Countrywide in the certification provided by the Trustee, or
Countrywide in the certification provided by the Custodian.
(2) Only in the certification by the Custodian.
EXHIBIT G
RESIDUAL TRANSFER AFFIDAVIT
GSAMP Trust 2005-HE2,
Mortgage Pass-Through Certificates
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 Residual Certificate (the
"Certificate") issued pursuant to the Pooling and Servicing Agreement dated as
of March 1, 2005 (the "Agreement"), among GS Mortgage Securities Corp., as
depositor (the "Depositor"), Countrywide Home Loans Servicing LP, as servicer,
JPMorgan Chase Bank, National Association, as servicer (collectively, the
"Servicers"), X.X. Xxxxxx Trust Company, National Association, as custodian, and
Deutsche Bank National Trust Company, 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 for the
benefit of the Depositor and the Trustee.
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 for its own account. 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 not
Permitted Transferees; (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 not a Permitted Transferee, 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 a Permitted Transferee 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 not a
Permitted Transferee 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 a Permitted Transferee and the pass-through
entity does not have actual knowledge that such affidavit is false. (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.)
5. The Transferee has reviewed the provisions of Section 5.02(c) of
the Agreement 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 H 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 has historically paid its debts as they have come
due, intends to pay its debts as they come due in the future, and understands
that the taxes payable with respect to the Certificate may exceed the cash flow
with respect thereto in some or all periods and intends to pay such taxes as
they become due. 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.
8. The Transferee's taxpayer identification number is __________.
9. The Transferee is a U.S. Person as defined in Code Section
7701(a)(30).
10. The Transferee is aware that the Certificate may be a
"noneconomic residual interest" within the meaning of proposed 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 from 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 U.S.
person.
12. Check one of the following:
[ ] 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)(ii)) 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 Sections 1.860E-1(c)(4)(i), (ii)
and (iii) and Section 1.860E-1(c)(5) of the U.S. Treasury
Regulations; 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 that is substantially similar to
Title I of ERISA or Section 4975 of the Code, and the Transferee is not acting
on behalf of or investing plan assets 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 ________, 20__.
-----------------------------------------
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 ________, 20__.
-----------------------------------------
NOTARY PUBLIC
My Commission expires the __ day
of _________, 20__
EXHIBIT H
FORM OF TRANSFEROR CERTIFICATE
__________, 20__
GS Mortgage Securities Corp.
00 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention:
Deutsche Bank National Trust Company,
as Trustee
0000 Xxxx Xx. Xxxxxx Xxxxx
Xxxxx Xxx, Xxxxxxxxxx 00000-0000
Re: GSAMP Trust, 2005-HE2, Mortgage Pass-Through Certificates, Class [ ]
--------------------------------------------------------------------
Ladies and Gentlemen:
In connection with our disposition of the above Certificates we
certify that (a) we understand that the Certificates have not been registered
under the Securities Act of 1933, as amended (the "Act"), and are being disposed
by us in a transaction that is exempt from the registration requirements of the
Act, (b) 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 Act and
(c) to the extent we are disposing of a Residual Certificate, (A) we have no
knowledge the Transferee is not a Permitted Transferee and (B) after conducting
a reasonable investigation of the financial condition of the Transferee, we have
no knowledge and no reason to believe that the Transferee will not pay all taxes
with respect to the Residual Certificates as they become due and (C) we have no
reason to believe that the statements made in paragraphs 7, 10 and 11 of the
Transferee's Residual Transfer Affidavit are false.
Very truly yours,
-----------------------------------------
Print Name of Transferor
By:
--------------------------------------
Authorized Officer
EXHIBIT I
FORM OF RULE 144A LETTER
____________, 20__
GS Mortgage Securities Corp.
00 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention:
Deutsche Bank National Trust Company,
as Trustee
0000 Xxxx Xx. Xxxxxx Xxxxx
Xxxxx Xxx, Xxxxxxxxxx 00000-0000
Re: GSAMP Trust 2005-HE2, Mortgage Pass-Through Certificates,
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 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 subject to
any Federal, state or local 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 using the assets of any such plan or arrangement to effect such
acquisition, or, with respect to a Class X Certificate, the purchaser is an
insurance company that is purchasing this certificate 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, (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, and (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, we 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 I
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 $_________(1) 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 Transferor
By:
--------------------------------------
Name:
Title:
Date:
------------------------------------
-------------
(1) Buyer must own and/or invest on a discretionary basis at least
$100,000,000 in securities unless Buyer is a dealer, and, in that case,
Buyer must own and/or invest on a discretionary basis at least $10,000,000
in securities.
ANNEX 2 TO EXHIBIT I
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.
-----------------------------------------
Print Name of Transferor
By:
--------------------------------------
Name:
Title:
IF AN ADVISER:
-----------------------------------------
Print Name of Buyer
Date:
------------------------------------
EXHIBIT J
FORM OF REQUEST FOR RELEASE
(for [Custodian] [Trustee])
To: [Address]
Re:
In connection with the administration of the Mortgage Loans held by
you as the [Custodian] [Trustee] on behalf of the Certificateholders we request
the release, and acknowledge receipt, of the (Custodial File/[specify
documents]) for the Mortgage Loan described below, for the reason indicated.
Mortgagor's Name, Address & Zip Code:
------------------------------------
Mortgage Loan Number:
--------------------
Reason for Requesting Documents (check one)
-------------------------------
____1. Mortgage Loan Paid in Full. (The Company hereby certifies that all
amounts received in connection therewith have been credited to the
Collection Account as provided in the Pooling and Servicing
Agreement.)
____2. Mortgage Loan Repurchase Pursuant to Section 2.03 of the Pooling and
Servicing Agreement. (The Company hereby certifies that the
repurchase price has been credited to the Collection Account as
provided in the Pooling and Servicing Agreement.)
____3. Mortgage Loan Liquidated by _________________. (The Company hereby
certifies that all proceeds of foreclosure, insurance, condemnation
or other liquidation have been finally received and credited to the
Collection Account pursuant to the Pooling and Servicing Agreement.)
____4. Mortgage Loan in Foreclosure.
____5. Other (explain).__________________________________________________
If box 1, 2 or 3 above is checked, and if all or part of the Custodial File was
previously released to us, please release to us our previous request and receipt
on file with you, as well as any additional documents in your possession
relating to the specified Mortgage Loan.
If Box 4 or 5 above is checked, upon our return of all of the above documents to
you as the [Custodian] [Trustee], please acknowledge your receipt by signing in
the space indicated below, and returning this form, if requested.
Address to which {Custodian] [Trustee]
Deliver the Trustee's Mortgage File:
-----------------------------------------
-----------------------------------------
-----------------------------------------
By:
------------------------------------
(authorized signer)
Issuer:
--------------------------------
Address:
-------------------------------
-----------------------------------------
Date:
----------------------------------
Trustee
-------
Acknowledged receipt by:
[X.X. Xxxxxx Trust Company, National Association,
as Custodian
By:
----------------------------------------------
Name:
Title:
Date]
[Deutsche Bank National Trust Company, as Trustee
By:
----------------------------------------------
Name:
Title:
Date]
EXHIBIT K
CONTENTS OF EACH MORTGAGE FILE
With respect to each Mortgage Loan, the Mortgage File shall include
each of the following items, which shall be available for inspection by the
Purchaser and which shall be retained by the applicable Servicer or delivered to
and retained by the Custodian or the Trustee, as applicable:
(i) the original Mortgage Note bearing all intervening endorsements
endorsed "Pay to the order of _____________, without recourse" and signed
in the name of the last endorsee. To the extent that there is no room on
the face of any Mortgage Note for an endorsement, the endorsement may be
contained on an allonge, if state law so allows and the Trustee is so
advised by the Depositor that state law so allows;
(ii) except with respect to the Mandalay Mortgage Loans and the
Conduit Mortgage Loans, the original of any guarantee executed in
connection with the Mortgage Note;
(iii) (A) with respect to the Accredited Mortgage Loans, the
Acoustic Mortgage Loans and the First NLC Mortgage Loans, the original
Mortgage with evidence of recording thereon. If in connection with any
Mortgage Loan, the applicable Original Loan Seller, cannot deliver or
cause to be delivered the original Mortgage with evidence of recording
thereon on or prior to the Closing Date because of a delay caused by the
public recording office where such Mortgage has been delivered for
recordation or because such Mortgage has been lost or because such public
recording office retains the original recorded Mortgage, the applicable
Original Loan Seller, (to the extent that it has not previously delivered
the same to the Purchaser or the Trustee) shall deliver or cause to be
delivered to the Trustee, a photocopy of such Mortgage, together with (i)
in the case of a delay caused by the public recording office, an officer's
certificate of (or certified by) the applicable Original Loan Seller (or
certified by the title company, escrow agent, or closing attorney) stating
that such Mortgage has been dispatched to the appropriate public recording
office for recordation and that the original recorded Mortgage or a copy
of such Mortgage certified by such public recording office to be a true
and complete copy of the original recorded Mortgage will be promptly
delivered to the Trustee upon receipt thereof by the applicable Original
Loan Seller; or (ii) in the case of a Mortgage 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, a copy of
such Mortgage certified by such public recording office to be a true and
complete copy of the original recorded Mortgage;
(B) with respect to the Mandalay Mortgage Loans and the
Conduit Mortgage Loans, the original Mortgage with evidence of
recording thereon. If in connection with any Mortgage Loan, the
applicable Original Loan Seller, cannot deliver or cause to be
delivered the original Mortgage with evidence of recording thereon
on or prior to the Closing Date because of a delay caused by the
public recording office where such Mortgage has been delivered for
recordation or because such Mortgage has been lost or because such
public recording office retains the original recorded Mortgage, the
applicable Original Loan Seller, (to the extent that it has not
previously delivered the same to the Purchaser or the Custodian)
shall deliver or cause to be delivered to the Custodian, a photocopy
of such Mortgage, together with (i) in the case of a delay caused by
the public recording office, an officer's certificate of (or
certified by) the applicable Original Loan Seller (or certified by
the title company, escrow agent, or closing attorney) stating that
such Mortgage has been dispatched to the appropriate public
recording office for recordation and that the original recorded
Mortgage or a copy of such Mortgage certified by such public
recording office to be a true and complete copy of the original
recorded Mortgage will be promptly delivered to the Custodian upon
receipt thereof by the applicable Original Loan Seller; or (ii) in
the case of a Mortgage 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, a copy of such
Mortgage certified by such public recording office to be a true and
complete copy of the original recorded Mortgage;
(iv) the originals of all assumption, modification, consolidation or
extension agreements, (if provided), with evidence of recording thereon or
a certified true copy of such agreement submitted for recording;
(v) except with respect to each MERS Designated Mortgage Loan, the
original Assignment of Mortgage for each Mortgage Loan endorsed in blank
and in recordable form;
(vi) (A) with respect to the Accredited Mortgage Loans, the Acoustic
Mortgage Loans and the First NLC Mortgage Loans, the originals of all
intervening Assignments of Mortgage (if any) evidencing a complete chain
of assignment from the applicable originator (or MERS with respect to each
MERS Designated Mortgage Loan) to the last endorsee with evidence of
recording thereon, or if any such intervening assignment has not been
returned from the applicable recording office or has been lost or if such
public recording office retains the original recorded Assignments of
Mortgage, the applicable Original Loan Seller (to the extent that it has
not previously delivered the same to the Purchaser or the Trustee) shall
deliver or cause to be delivered to the Trustee, a photocopy of such
intervening assignment, together with (A) in the case of a delay caused by
the public recording office, an officer's certificate of (or certified by)
the applicable Original Loan Seller (or certified by the title company,
escrow agent, or closing attorney) stating that such intervening
Assignment of Mortgage has been dispatched to the appropriate public
recording office for recordation and that such original recorded
intervening Assignment of Mortgage or a copy of such intervening
Assignment of Mortgage certified by the appropriate public recording
office to be a true and complete copy of the original recorded intervening
assignment of mortgage will be promptly delivered to the Trustee upon
receipt thereof by the applicable Original Loan Seller; or (B) in the case
of an intervening assignment where a public recording office retains the
original recorded intervening assignment or in the case where an
intervening assignment is lost after recordation in a public recording
office, a copy of such intervening assignment certified by such public
recording office to be a true and complete copy of the original recorded
intervening assignment;
(B) with respect to the Mandalay Mortgage Loans and the
Conduit Mortgage Loans, the originals of all intervening Assignments
of Mortgage (if any) evidencing a complete chain of assignment from
the applicable originator (or MERS with respect to each MERS
Designated Mortgage Loan) to the last endorsee with evidence of
recording thereon, or if any such intervening assignment has not
been returned from the applicable recording office or has been lost
or if such public recording office retains the original recorded
Assignments of Mortgage, the applicable Original Loan Seller (to the
extent that it has not previously delivered the same to the
Purchaser or the Trustee) shall deliver or cause to be delivered to
the Custodian, a photocopy of such intervening assignment, together
with (A) in the case of a delay caused by the public recording
office, an officer's certificate of (or certified by) the applicable
Original Loan Seller (or certified by the title company, escrow
agent, or closing attorney) stating that such intervening Assignment
of Mortgage has been dispatched to the appropriate public recording
office for recordation and that such original recorded intervening
Assignment of Mortgage or a copy of such intervening Assignment of
Mortgage certified by the appropriate public recording office to be
a true and complete copy of the original recorded intervening
assignment of mortgage will be promptly delivered to the Custodian
upon receipt thereof by the applicable Original Loan Seller; or (B)
in the case of an intervening assignment where a public recording
office retains the original recorded intervening assignment or in
the case where an intervening assignment is lost after recordation
in a public recording office, a copy of such intervening assignment
certified by such public recording office to be a true and complete
copy of the original recorded intervening assignment;
(vii) the original or duplicate lender's title policy and any riders
thereto or, any one of an original title binder, an original or copy of
the preliminary title report or an original or copy of the title
commitment, and if, copies then certified by the title company;
(viii) a security agreement, chattel mortgage or equivalent document
executed in connection with the Mortgage (if provided);
(ix) residential loan application;
(x) Mortgage Loan closing statement;
(xi) verification of employment and income, if applicable;
(xii) verification of acceptable evidence of source and amount of
down payment;
(xiii) credit report on Mortgagor;
(xiv) residential appraisal report;
(xv) photograph of the Mortgaged Property;
(xvi) survey of the Mortgaged Property;
(xvii) copy of each instrument necessary to complete identification
of any exception set forth in the exception schedule in the title policy,
i.e., map or plat, restrictions, easements, sewer agreements, home
association declarations, etc.;
(xviii) all required disclosure statements;
(xix) if required in an appraisal, termite report, structural
engineer's report, water potability and septic certification;
(xx) sales contract, if applicable; and
(xxi) original powers of attorney, if applicable, with evidence of
recording thereon, if required.
Evidence of payment of taxes and insurance, insurance claim files,
correspondence, current and historical computerized data files (which include
records of tax receipts and payment history from the date of origination), and
all other processing, underwriting and closing papers and records which are
customarily contained in a mortgage loan file and which are required to document
the mortgage loan or to service the mortgage loan.
EXHIBIT L
SERVICER REPORTING REQUIREMENTS
Data File Layout
------------------------------------------------------------------------------------------------
XXXXXXX XXXXX LOAN SERVICER INFORMATION REQUEST LIST
------------------------------------------------------------------------------------------------
Legend:
------------------------------------------------------------------------------------------------
A=Available at Inception
------------------------------------------------------------------------------------------------
T=Tech staff to resolve
------------------------------------------------------------------------------------------------
B=Best efforts to provide data
------------------------------------------------------------------------------------------------
N=Not available
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
FIELD NAME FIELD DESCRIPTION FORMAT
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
ONE TIME, STATIC FIELDS Legend
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
Loan Number A Loan Number currently being used to service this Text
loan.
------------------------------------------------------------------------------------------------
Prior Loan Number A Prior Loan Number (if any). If servicing has Text
transferred this should contain the Loan Number
used by the previous servicer.
------------------------------------------------------------------------------------------------
Trustee File Number T Trustee ID used to file documents. This can be Text
the Trustee's only id or a category used to
arrange documents into proper pools.
------------------------------------------------------------------------------------------------
Trustee Loan Number T Trustee secondary ID used to file documents. Text
Often this is used in conjunction with Trustee
File Number to uniquely identify loans.
------------------------------------------------------------------------------------------------
Origination Date A Origination Date shown on loan documents. Date
------------------------------------------------------------------------------------------------
Original Balance A Original amount of loan granted to borrower. In Numeric
the case of construction loans this should be
the full amount extended on which the monthly
payments are based.
------------------------------------------------------------------------------------------------
First Payment Date A This is the contractual date when the first payment was to
be made. If the loan has been modified this should be the
first scheduled payment date following the modification.
------------------------------------------------------------------------------------------------
Original Maturity Date A This is the contractual date when the last Date
payment on the loan is scheduled to be made.
For balloons it should be the balloon date. For
modified loans it should not be the modified
maturity date.
------------------------------------------------------------------------------------------------
Original Term A The number of months from First Payment Date to Number
Maturity Date inclusive.
------------------------------------------------------------------------------------------------
Balloon Flag A Code/literal to identify balloon loans. Text
Example: Y, N.
------------------------------------------------------------------------------------------------
Loan Type A Code/literal to identify the loan type. See Text
Enumerations worksheet.
------------------------------------------------------------------------------------------------
Amortization Type A Generic category to describe loan type. See Text
Enumerations worksheet.
------------------------------------------------------------------------------------------------
Original Amortization A Original Amortization Term of the loan in number Number
Term of months. For fully amortizing loans would be
the same as Original Term. For balloon loans
this would exceed Original Term. For IO loans
this would have no value.
------------------------------------------------------------------------------------------------
Interest Calculation A The basis on which interest is calculated. See
Method Enumerations worksheet.
------------------------------------------------------------------------------------------------
Daily Simple Interest T Flag to identify loans where interest is due is calculated
Flag based on the date that each payment is actually received.
------------------------------------------------------------------------------------------------
Original Principal and A Original contractual principal and interest Number
Interest payment amount.
------------------------------------------------------------------------------------------------
Original Interest Rate A Original contractual interest rate for loan.
------------------------------------------------------------------------------------------------
Negative Amortization A Code/literal to identify loans where negative Text
Flag amortization is allowed. Example: Y=neg am
allowed, N=no neg am allowed.
------------------------------------------------------------------------------------------------
Negam Percent Cap A Maximum percentage of original balance that a Number
loan may negatively amortize by. Example:
1.25, 1,10.
------------------------------------------------------------------------------------------------
Servicing Fee A Servicing Fee rate due servicer. Example: Number
0.25%.
------------------------------------------------------------------------------------------------
Property Type A Code/literal that identifies the type of Text
property securing the loan. See Enumerations
worksheet.
------------------------------------------------------------------------------------------------
Property Address A Property address, not billing address. Text
------------------------------------------------------------------------------------------------
Property City A Property city. Text
------------------------------------------------------------------------------------------------
Property State A Property state. Text
------------------------------------------------------------------------------------------------
Property Zip A Property zip. Number
------------------------------------------------------------------------------------------------
Borrower Name A Name of borrower. Preferably in a fixed format. Text
Example: XXXXX XXXX
W.
------------------------------------------------------------------------------------------------
CoBorrower Name A Name of Co borrower. Preferably in a fixed Text
format.
Example: XXXXX XXXX
W.
------------------------------------------------------------------------------------------------
Borrower Social Security Eleven character ID. Example: 000-00-0000. Number
Number/TIN
A
--------------------------------------------------------------
CoBorrower Social Security Eleven character ID. Example: 000-00-0000. Number
Number/TIN
A
------------------------------------------------------------------------------------------------
Original FICO score A Credit bureau score obtained at application. Number
------------------------------------------------------------------------------------------------
Original Credit Grade A Internal credit grade assigned at origination. Text
------------------------------------------------------------------------------------------------
Original Loan To Value A Ratio representing the Original Loan Balance to the lower of
Ratio the Original Appraised Value or Original Purchase Price.
Example: 80.00.
------------------------------------------------------------------------------------------------
Original Appraised Value A Appraised value at time of application. Number
------------------------------------------------------------------------------------------------
Original Appraisal Date A Date of the original Appraisal Date
------------------------------------------------------------------------------------------------
Original Appraisal Firm A Name of the Appraisal firm Text
------------------------------------------------------------------------------------------------
Original Purchase Price A Price paid for home. Number
------------------------------------------------------------------------------------------------
Purchase BPO A BPO at the time of Purchase by GS. Number
------------------------------------------------------------------------------------------------
Purchase BPO Date A Date of the Purchase BPO Date
------------------------------------------------------------------------------------------------
Lien Position A Number used to identify the lien position in Number
effect at the time of application. Example:
1, 2, 3
------------------------------------------------------------------------------------------------
PMI Provider A Name or code for company providing private
mortgage insurance.
------------------------------------------------------------------------------------------------
PMI Coverage Percentage A Percentage of insurance provided by PMI
agreement.
------------------------------------------------------------------------------------------------
PMI Certificate ID A Unique ID to identify PMI insurance certificate.
------------------------------------------------------------------------------------------------
Occupancy Type A Occupancy status at time of application. See Text
Enumerations worksheet.
------------------------------------------------------------------------------------------------
Purpose of Loan A Code/literal used to identify the original Text
purpose of the loan. See Enumerations
worksheet.
------------------------------------------------------------------------------------------------
Prepayment Flag A Code/Flag to determine if loan was originated Text
with a prepayment penalty.
------------------------------------------------------------------------------------------------
Prepayment Penalty Type T Code/literal to identify characteristics of Text
penalty. Example: 6 MO INT ON 80% XXXX,
5/4/3/2/1, 3%.
------------------------------------------------------------------------------------------------
Prepayment Term A Original number of months that penalty was Number
imposed.
------------------------------------------------------------------------------------------------
Front Ratio T Front End Ratio at time of application. Number
Mortgage debt to borrower income.
------------------------------------------------------------------------------------------------
Back Ratio T Back End Ratio at time of application. Total Number
debt to borrower income.
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
MONTHLY LOAN
DATA UPDATES
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
As Of Date A As Of Date for data sent. Date
------------------------------------------------------------------------------------------------
Loan Number A Loan Number currently being used to service this Number
loan.
------------------------------------------------------------------------------------------------
Investor Number A This is the servicer assigned number for Number
reporting purposes.
------------------------------------------------------------------------------------------------
Investor Category A This is the servicer assigned category for
reporting purposes.
------------------------------------------------------------------------------------------------
Current Maturity Date A This is the actual date when the last payment on Date
the loan is scheduled to be made. For balloons
it should be the balloon date. For modified
loans it should be the modified maturity date.
------------------------------------------------------------------------------------------------
Remaining Term A The Remaining Term of the loan Number
------------------------------------------------------------------------------------------------
Current Principal & A Principal & Interest in effect for currently Number
Interest Payment outstanding payment.
------------------------------------------------------------------------------------------------
Current Interest Rate A Interest Rate in effect for currently Number
outstanding payment.
------------------------------------------------------------------------------------------------
Next Due Date A Date next payment is due.
------------------------------------------------------------------------------------------------
Interest Paid To Date A Date interest is paid to. Typically for 30/360 loans it is
one month prior to Next Due Date.
------------------------------------------------------------------------------------------------
Last Payment Date A Date last payment was made. Date
------------------------------------------------------------------------------------------------
Current Balance A Actual outstanding balance of loan. Number
------------------------------------------------------------------------------------------------
Current Balance Net T The net present value of the current balance Number
Present Value
------------------------------------------------------------------------------------------------
Days Past Due A Number of days loan is past due.
------------------------------------------------------------------------------------------------
Delinquency Indicates if ABS or MBS method for reporting
Convention delinquencies is used.
------------------------------------------------------------------------------------------------
Delinquency Status A Indicates delinquency reported. Example: 30, Number
60, 90.
------------------------------------------------------------------------------------------------
Status of Loan A Code/literal used to identify loan status. See Text
Enumerations worksheet.
------------------------------------------------------------------------------------------------
12 Month Pay String T 12 character string representing the timing of payments
received on a rolling 12 month basis. String should begin
with January and end with December.
------------------------------------------------------------------------------------------------
Time 30 Days Delinquent in Past Indicates the number of times a loan payment has been made
12 Months 30 or more days delinquent in the past 12 months.
A
------------------------------------------------------------------------------------------------
Time 60 Days Delinquent in Past Indicates the number of times a loan payment has been made
12 Months 60 or more days delinquent in the past 12 months.
A
------------------------------------------------------------------------------------------------
Time 90 Days Delinquent in Past Indicates the number of times a loan payment has been made
12 Months 90 or more days delinquent in the past 12 months.
A
------------------------------------------------------------------------------------------------
Last Modification Date B Date that loan was last modified.
------------------------------------------------------------------------------------------------
Last Extension Date B Date loan term was last extended.
------------------------------------------------------------------------------------------------
Total Extension Months B Number of months loan has been extended in total.
------------------------------------------------------------------------------------------------
Restructured Interest B Total amount of restructured interest.
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
Property Sale Date A Date property sold. Date
------------------------------------------------------------------------------------------------
Debt To Income Ratio A Debt To Income Ratio Number
------------------------------------------------------------------------------------------------
Senior Lien Amount A Most recently recorded senior lien amount. Number
------------------------------------------------------------------------------------------------
Recent Property A Most recent appraised value or BPO value. Number
Valuation
------------------------------------------------------------------------------------------------
Recent Property A Date of most recent valuation. Date
Valuation Date
------------------------------------------------------------------------------------------------
Valuation Method A Identify method used to obtain new valuation. Text
See Enumerations worksheet.
------------------------------------------------------------------------------------------------
Valuation Firm T Name of the Firm who appraised the property Text
------------------------------------------------------------------------------------------------
Current FICO T Current FICO score. Number
------------------------------------------------------------------------------------------------
FICO Date T FICO Date. Date
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
MONTHLY
SERVICING
UPDATES
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
Borrower Payments
------------------------------------------------------------------------------------------------
Total Monthly Payment A Total cash received from borrower. Number
------------------------------------------------------------------------------------------------
Total Monthly Payment A Cash applied to principal. Number
Principal
------------------------------------------------------------------------------------------------
Total Monthly Payment A Cash applied to interest. Number
Interest
------------------------------------------------------------------------------------------------
Total Monthly Payment Cash applied to fees. Text
Penalties / Fee
A
------------------------------------------------------------------------------------------------
Total Monthly Escrow A Cash applied to escrow account. Number
Payment
------------------------------------------------------------------------------------------------
Total Monthly T Total amount borrower prepaid Number
Prepayment Amount
------------------------------------------------------------------------------------------------
Payment Date A Date the payment was made. Date
------------------------------------------------------------------------------------------------
Scheduled P&I A Borrower Scheduled P&I payment for the month Number
------------------------------------------------------------------------------------------------
REO Rent Collection A Collection of rent on an REO Property
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
Servicer Payments
------------------------------------------------------------------------------------------------
Monthly Escrow Advances A Net escrow advances made or recovered by Number
servicer. Positive value denotes payments made
by servicer.
------------------------------------------------------------------------------------------------
Monthly Corporate A Net corporate advances made or recovered by Number
Advances servicer. Positive value denotes payments made
by servicer.
------------------------------------------------------------------------------------------------
Monthly Non Recoverable Net Non Recoverable Corporate Advances made or Number
Corporate Advances recovered by Servicer. Positive value denotes
A payments made by Servicer.
------------------------------------------------------------------------------------------------
Principal Advances A Total outstanding principal advances made by Number
servicer.
------------------------------------------------------------------------------------------------
Interest Advances A Total outstanding interest advances made by Number
servicer.
------------------------------------------------------------------------------------------------
LPMI Flag A Code/Flag to determine if PMI is paid by owner Text
of loan
------------------------------------------------------------------------------------------------
LPMI Rate A Rate per annum of LPMI premiums Number
------------------------------------------------------------------------------------------------
Account Balances
------------------------------------------------------------------------------------------------
Beginning Scheduled A Beginning scheduled loan balance. If the loan Number
Balance is serviced on a scheduled balance basis
------------------------------------------------------------------------------------------------
Ending Scheduled Balance A Ending scheduled loan balance. If the loan is
serviced on a scheduled balance basis
------------------------------------------------------------------------------------------------
Escrow Balance A Current balance of escrow account (borrower's Number
positive funds).
------------------------------------------------------------------------------------------------
Escrow Advance Balance A Total outstanding escrow advance balance. Number
------------------------------------------------------------------------------------------------
Recoverable Corporate A Total outstanding Recoverable corporate advance Number
Advance Balance balance amount.
------------------------------------------------------------------------------------------------
Non Recoverable Corporate Total outstanding Non Recoverable corporate Number
Advance Balance advance balance amount.
A
------------------------------------------------------------------------------------------------
Suspense Account Balance A Total suspense account balance Number
------------------------------------------------------------------------------------------------
Accrued Interest A Total Accrued Interest on loan. Number
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
Account Management
Statistics
------------------------------------------------------------------------------------------------
Forced Placed T Code indicating loan is on forced placed
Insurance Flag insurance.
------------------------------------------------------------------------------------------------
Annual Forced Placed T Amount of forced placed policy.
Insurance
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
Stop Advance Flag B Code indicating loan has been placed in a stop Text
advance status. Example: Y=Stop Advance.
------------------------------------------------------------------------------------------------
Stop Advance Recovered B Amount of principal and interest advances
recovered at stop date.
------------------------------------------------------------------------------------------------
Stop Advance Start Date B Date loan was initially placed on a stop advance Date
status.
------------------------------------------------------------------------------------------------
Stop Advance Reversal B Date stop advance status was reversed. Date
Date
------------------------------------------------------------------------------------------------
Stop Advance Reversal B Amount of advances reversed. Number
Amount
------------------------------------------------------------------------------------------------
Last Contact Date A Date of Servicer's last contact with the Date
borrower.
------------------------------------------------------------------------------------------------
Last Attempt Date A Date of the Servicer's last attempt to contact Date
the borrower.
------------------------------------------------------------------------------------------------
Bankruptcy Flag A Flag indicating loan is in bankruptcy. Text
------------------------------------------------------------------------------------------------
Bankruptcy Chapter A Chapter of bankruptcy (7, 11, 12, 13). Text
------------------------------------------------------------------------------------------------
Bankruptcy Start Date A Bankruptcy filing date. Date
------------------------------------------------------------------------------------------------
Bankruptcy End Date A Dismissal/Discharge date. Date
------------------------------------------------------------------------------------------------
Bankruptcy Post A Payment due date of Bankruptcy payment plan. In Date
Petition Due Date essence the new due date.
------------------------------------------------------------------------------------------------
Motion for Relief A Motion for Relief Request Date. Date
Request Date
------------------------------------------------------------------------------------------------
Motion for Relief A Date
Filing Date
------------------------------------------------------------------------------------------------
Motion for Relief A Motion for Relief Hearing Date. Date
Hearing Date
------------------------------------------------------------------------------------------------
Motion for Relief A Motion for Relief Granted Date. Date
Granted Date
------------------------------------------------------------------------------------------------
Motion for Relief N Date the motion was Denied (if applicable) Date
Denied Date
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
In Demand Flag T Code indicating demand letter has been sent. Text
------------------------------------------------------------------------------------------------
In Demand Start Date T Date demand letter was sent. Date
------------------------------------------------------------------------------------------------
In Demand End Date T Expiration of demand letter. Date
------------------------------------------------------------------------------------------------
Foreclosure Start Date A Date foreclosure flag placed on loan. Date
------------------------------------------------------------------------------------------------
Due Date At Referral T The revised due date on any payment modification. Date
------------------------------------------------------------------------------------------------
Foreclosure Estimated T On loans that are in Foreclosure the Servicers estimate of
End Date when the FCL will be completed.
------------------------------------------------------------------------------------------------
Foreclosure Sale Date A Date of actual foreclosure sale. Date
------------------------------------------------------------------------------------------------
Foreclosure end date T Date of recording of foreclosure deed. Date
------------------------------------------------------------------------------------------------
First Legal Date A Date of first legal action taken on foreclosure. Date
------------------------------------------------------------------------------------------------
Foreclosure Resolution B Indicates if the loan has moved out of Number
Flag foreclosure (i.e. Did not go to REO).
------------------------------------------------------------------------------------------------
Foreclosure Resolution B Method used by the servicer to prevent the foreclosed loan
Type from moving into REO (i.e. Reinstated, Paid Off, Worked out
Repayment plan....).
------------------------------------------------------------------------------------------------
Foreclosure On Hold B Flag indicating that the loan is in foreclosure
but on hold.
------------------------------------------------------------------------------------------------
Foreclosure Hold Start B Date indicating when the loan's foreclosure Date
Date proceedings were put on hold.
------------------------------------------------------------------------------------------------
Bankruptcy Cash Delays B Number of days an active foreclosure has been in BK
subsequent to its initial foreclosure start date.
------------------------------------------------------------------------------------------------
Forbearance Cash Delays B Number of days an active foreclosure has been in forbearance
subsequent to its initial foreclosure start date.
------------------------------------------------------------------------------------------------
Non - Cash Delays B Number of allowable days that a loan's foreclosure
proceedings have been on hold due to a non cash delay (i.e.
Title problem...) [again as per Fannie time line]
------------------------------------------------------------------------------------------------
Forbearance Start Date A Date forbearance plan was initiated. Date
------------------------------------------------------------------------------------------------
Forbearance Payment A Amount of payment under Forbearance plan. Number
------------------------------------------------------------------------------------------------
Forbearance End Date A Date forbearance plan scheduled to be complete. Date
------------------------------------------------------------------------------------------------
Eviction Start Date A Date eviction flag placed on loan. Date
------------------------------------------------------------------------------------------------
Eviction End Date A Date property is vacated. Date
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
REO Start Date A Date REO flag placed on loan (including any Date
redemption periods).
------------------------------------------------------------------------------------------------
REO End Date A Date property is sold. Date
------------------------------------------------------------------------------------------------
REO Sub Status A Status while within REO. See Enumerations
worksheet.
------------------------------------------------------------------------------------------------
Not Acquired Date T Date that the REO enters "Not Acquired" sub Date
status
------------------------------------------------------------------------------------------------
Eviction Date A Date that the REO enters "Eviction" sub status Date
------------------------------------------------------------------------------------------------
Possession Date T Date that the REO enters "Possession" sub status Date
------------------------------------------------------------------------------------------------
Listed Date A Date that the REO enters "Listed" sub status Date
------------------------------------------------------------------------------------------------
Under Contract Date T Date that the REO enters "Under Contract" sub Date
status
------------------------------------------------------------------------------------------------
Estimated Sale Date A Servicer estimated closing date on loan Date
------------------------------------------------------------------------------------------------
Days In REO A Number of Days from the REO becomes marketable Number
to the As of Date
------------------------------------------------------------------------------------------------
Estimated Sales Price A Servicer estimated REO Sales Price Number
------------------------------------------------------------------------------------------------
Possession Date A Date when the servicer takes possession of the property.
Date we have full access to the property, eviction completed
------------------------------------------------------------------------------------------------
Redemption End Date A Legal time period, determined by State, when borrower can
redeem their property. Property not available for sale
until redemption completed (no beginning date, just an end
date)
------------------------------------------------------------------------------------------------
Initial Listing Price A First listing price of property. Number
------------------------------------------------------------------------------------------------
Initial Listing Date A Date of the first listing price of property Date
------------------------------------------------------------------------------------------------
Current List Price A Most recent listing price of property. Number
------------------------------------------------------------------------------------------------
Current List Date A Date of the most recent listing price of Date
property.
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
Reason For Default A Servicer Code representing the Reason for Default. See
Enumerations worksheet.
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
LIQUIDATED LOANS (Liquidated and Paid Off loans)
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
Termination Type A Type of liquidation. See Enumerations worksheet. Text
------------------------------------------------------------------------------------------------
Balance at Termination A Actual Principal balance at time of termination. Number
------------------------------------------------------------------------------------------------
Scheduled Sale Date A Dates of planned sales for properties in Foreclosure Date
------------------------------------------------------------------------------------------------
Property Sales Price A Sales price if liquidation was short sale or REO sale. Number
------------------------------------------------------------------------------------------------
Liquidation Date A Date property liquidated. Date
------------------------------------------------------------------------------------------------
Gross Total Proceeds A Gross Total Proceeds. Number
------------------------------------------------------------------------------------------------
Net Total Proceeds A Gross total proceeds less expenses.
------------------------------------------------------------------------------------------------
Principal Advanced A Total of principal advanced at time of liquidation. Number
------------------------------------------------------------------------------------------------
Interest Advanced A Total of interest advanced at time of liquidation. Number
------------------------------------------------------------------------------------------------
Deferred Interest T Amount of deferred interest on the loan @ liquidation Number
------------------------------------------------------------------------------------------------
Accrued Servicing Fee T Servicing fee recovered at time of liquidation. Number
Recovered
------------------------------------------------------------------------------------------------
Corporate Advances The amount of the Total Corporate Advance balance Number
Recovered at Termination recovered at termination
A
------------------------------------------------------------------------------------------------
Escrow Advances Recovered The amount of the Total Escrow Advance balance Number
at Termination recovered at termination
A
------------------------------------------------------------------------------------------------
Commission A The broker commission amount on liquidation Number
------------------------------------------------------------------------------------------------
Seller Concession A The dollar amt of seller concessions upon liquidation. Number
------------------------------------------------------------------------------------------------
Taxes A Taxes paid on liquidation Number
------------------------------------------------------------------------------------------------
Repairs A Cost of Repairs to property Number
------------------------------------------------------------------------------------------------
Water and Sewer A Water & Sewer costs Number
------------------------------------------------------------------------------------------------
Expenses Recovered at A The amount of the Total Expenses recovered at Number
Termination termination
------------------------------------------------------------------------------------------------
Corporate Advances at A Corporate advance balance at time of liquidation. Number
Termination
------------------------------------------------------------------------------------------------
Escrow Advances at T Escrow advance balance at time of liquidation. Number
Termination
------------------------------------------------------------------------------------------------
Days from Acquisition to A Days from Acquisition to Close Number
Close
------------------------------------------------------------------------------------------------
Days from Possession to A Days from Possession to Close Number
Close
------------------------------------------------------------------------------------------------
Charge-off amount A Loss amount. Number
------------------------------------------------------------------------------------------------
Severity A Severity percentage.
------------------------------------------------------------------------------------------------
Severity Formula A Formula for calculating Severity percentage. Text
------------------------------------------------------------------------------------------------
Potential Deficiency N Flag indicating loan is referred for deficiency Text
Judgment Flag collections.
------------------------------------------------------------------------------------------------
Potential Deficiency N Deficiency balance reported to borrower/IRS. Number
Amount
------------------------------------------------------------------------------------------------
Deficiency Proceeds N Deficiency proceeds collected in current month. Number
(this period)
------------------------------------------------------------------------------------------------
Deficiency Proceeds N Deficiency proceeds collected to date. Number
Total (to date)
------------------------------------------------------------------------------------------------
Deficiency Vendor Expense N Deficiency vendor out of pocket expenses. Number
------------------------------------------------------------------------------------------------
Deficiency Servicer N Deficiency vendor collection fee Number
Expense
------------------------------------------------------------------------------------------------
Hazard Insurance Claim B Date hazard claim filed. Date
Date
------------------------------------------------------------------------------------------------
Hazard Insurance Claim B Date hazard claim due. Number
Due Date
------------------------------------------------------------------------------------------------
Hazard Insurance Claim B Amount of hazard claim. Date
Amount
------------------------------------------------------------------------------------------------
Hazard Insurance Claim Amount of hazard claim paid to investor. Number
Paid Amount B
------------------------------------------------------------------------------------------------
MI Insurance Claim Date A Date MI claim filed.
------------------------------------------------------------------------------------------------
MI Insurance Claim Due A Date MI claim is due to be paid.
Date
------------------------------------------------------------------------------------------------
MI Insurance Claim Amount A Expected MI proceeds.
------------------------------------------------------------------------------------------------
MI Insurance Claim Paid A Actual MI proceeds received.
Amount
------------------------------------------------------------------------------------------------
Servicer Hold Back Amount B Amount servicer withholds for future trailing
expenses.
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
----------------------------------------------------------------
Interest Calculation
Method
----------------------------------------------------------------
3360 30/360
A360 Actual/360
A365 Actual/365
AA Actual/Actual
----------------------------------------------------------------
----------------------------------------------------------------
Loan Type
----------------------------------------------------------------
COMI Conventional, with mi. Collecting a
premium from the borrower for
mortgage insurance and is FHA and is
VA
CONV Conventional, no mi
FHA FHA Mortgage
HEL Home Equity Line of credit
CC Credit Card
A Auto
B Boats
RV RV's
MFG Manufactured Housing
ATV ATV
VA VA Mortgage
OTH Other
----------------------------------------------------------------
----------------------------------------------------------------
Occupancy Type
----------------------------------------------------------------
2ND 2nd Home
NOO Non Owner Occupied
OO Owner Occupied
VA Vacant
----------------------------------------------------------------
----------------------------------------------------------------
Property Type
----------------------------------------------------------------
2F 2 Family
3F 3 Family
4F 4 Family
2-4F 2-4 Family
AUTO Automobile
BOAT Boat
COND Condominium
COOP Cooperative
HR-CONDO High Rise Condo
HVAC HVAC
MF Multi Family
MH Manufactured Housing
MX Mixed Use
OF Office
OTH Other
PUDA PUD - Attached
PUDD PUD - Detached
PWR PowerSports
RT Retail
RV Recreational Vehicle
SF Single Family
TH TownHouse
----------------------------------------------------------------
----------------------------------------------------------------
Purpose of Loan
----------------------------------------------------------------
PUR Purchase
RELO Relocation
REFI Rate/Term Refinance
CASH Cash Out Refinance
DEBT Cash Out Debt Consolidation
IMPR Cash Out Home Improvement
EDUC Cash Out Medical or Educational
Expense
TIT1 Title One Home Improvement
CONST New Construction
REO Facilitate REO
----------------------------------------------------------------
----------------------------------------------------------------
Status of Loan
----------------------------------------------------------------
BU Bankrupt - Unknown Status
C Current
DISP Dispute
F Foreclosure
NE Non Equity (NPV of current balance <
$7,500)
FB Forbearance
ID In Demand
LIT Litigation
NLS No Longer Serviced
PO Paid Off- Borrower paid down entire
balance
REO Real Estate Owned - MUST Include a
REO sub status
RSLD Resolved
LIQ Liquidated - MUST include a
Termination Type
U Unknown
----------------------------------------------------------------
----------------------------------------------------------------
Termination Type
----------------------------------------------------------------
CO Charge Off
COC Charge Off with cash possible
NLPO Negotiated Loan Payoff
NS Negotiated Sale
PO Paid Off
PPOC PPO with More Cash Possible
REOS REO Sale
TPPO Third Party Paid Off
----------------------------------------------------------------
----------------------------------------------------------------
Valuation Method
----------------------------------------------------------------
DB Drive By
WT Walk Through
OTH Other
APPR Appraisal
DD Due Diligence
PRFC Pre Foreclosure
SUPP Supplemental
RR Re-review
----------------------------------------------------------------
----------------------------------------------------------------
REO Sub Status
----------------------------------------------------------------
AC Acquired
PS Possession
EV Eviction
LS Listed
UC Under Contract
----------------------------------------------------------------
----------------------------------------------------------------
Reason For Default
----------------------------------------------------------------
ABP Abandonment of Property
BF Business Failure
CI Curtailment Of Income
D Death
EO Excessive Obligations
ILL Illness
ITR Inability To Rent
MD Marital Difficulties
MS Military Service
MI Mortgagor Incarcerated
N No Reason
PD Payment Dispute
PP Property Problem
SP Servicing Problems
TOP Transfer Of Ownership Pen
UC Unable To Contact
UEMP Unemployment
----------------------------------------------------------------
EXHIBIT M
FORM OF CERTIFICATION TO BE PROVIDED WITH FORM-10-K
Re: GSAMP Trust 2005-HE2 (the "Trust") Mortgage Pass-Through
Certificates, Series 2005-HE2, issued pursuant to the Pooling and
Servicing Agreement, dated as of March 1, 2005 (the "Pooling and
Servicing Agreement"), among GS Mortgage Securities Corp., as
depositor (the "Depositor"), JPMorgan Chase Bank, National
Association, as servicer ("JPMorgan"), Countrywide Home Loans
Servicing LP, as servicer ("Countrywide"), X.X. Xxxxxx Trust
Company, National Association, as custodian (the "Custodian"), and
Deutsche Bank National Trust Company, as trustee (the "Trustee")
--------------------------------------------------------------------
I, [identify the certifying individual], certify that:
1. I have reviewed this annual report on Form 10-K ("Annual Report"), and all
reports on Form 8-K containing distribution reports (collectively with
this Annual Report, the "Reports") filed in respect of periods included in
the year covered by this Annual Report, of the Trust;
2. Based on my knowledge, the information in the 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;
3. Based on my knowledge, the distribution or servicing information required
to be provided to the Trustee by the Servicers under the Pooling and
Servicing Agreement for inclusion in the Reports is included in the
Reports;
4. Based on my knowledge and upon the annual compliance statement included in
this Annual Report and required to be delivered to the Trustee in
accordance with the terms of the Pooling and Servicing Agreement, and
except as disclosed in the Reports, the Servicers have fulfilled its
obligations under the Pooling and Servicing Agreement; and
5. The Reports disclose all significant deficiencies relating to the
Servicers' compliance with the minimum servicing standards based upon the
report provided by an independent public accountant, after conducting a
review in compliance with the Uniform Single Attestation Program for
Mortgage Bankers or similar procedure, as set forth in the Pooling and
Servicing Agreement, that is included in the Reports.
In giving the certifications above, I have reasonably relied on information
provided to me by the following unaffiliated parties: the Trustee, JPMorgan and
Countrywide.
Date:
-------------------------
-------------------------------
[Signature]
[Title]
EXHIBIT N
FORM OF TRUSTEE CERTIFICATION TO BE PROVIDED TO DEPOSITOR
Re: GSAMP Trust 2005-HE2 (the "Trust") Mortgage Pass-Through
Certificates, Series 2005-HE2, issued pursuant to the Pooling and
Servicing Agreement, dated as of March 1, 2005 (the "Pooling and
Servicing Agreement"), among GS Mortgage Securities Corp., as
depositor (the "Depositor"), JPMorgan Chase Bank, National
Association, as servicer ("JPMorgan"), Countrywide Home Loans
Servicing LP, as servicer ("Countrywide"), X.X. Xxxxxx Trust
Company, National Association, as custodian (the "Custodian"), and
Deutsche Bank National Trust Company, as trustee (the "Trustee")
I, [identify the certifying individual], a [title] of Deutsche Bank
National Trust Company certify to the Depositor and its officers,
directors and affiliates, and with the knowledge and intent that
they will rely upon this certification, that:
1. I have reviewed the annual report on Form 10-K (the "Annual Report") for
the fiscal year [___], and all reports on Form 8-K containing distribution
reports filed in respect of periods included in the year covered by the
Annual Report (collectively with the Annual Report, the "Reports"), of the
Trust;
2. Based on my knowledge, the information in the 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 the Annual Report; and
3. Based on my knowledge, the distribution or servicing information required
to be provided to the Trustee by the Servicer under the Pooling and
Servicing Agreement for inclusion in the Reports is included in the
Reports.
Date:
-------------------------
DEUTSCHE BANK NATIONAL TRUST COMPANY
By:
-------------------------------
Name:
-------------------------------
Title:
-------------------------------
EXHIBIT O
FORM OF SERVICER CERTIFICATION TO BE PROVIDED TO DEPOSITOR
Re: GSAMP Trust 2005-HE2 (the "Trust") Mortgage Pass-Through
Certificates, Series 2005-HE2, issued pursuant to the Pooling and
Servicing Agreement, dated as of March 1, 2005 (the "Pooling and
Servicing Agreement"), among GS Mortgage Securities Corp., as
depositor (the "Depositor"), JPMorgan Chase Bank, National
Association, as servicer ("JPMorgan"), Countrywide Home Loans
Servicing LP, as servicer ("Countrywide"), X.X. Xxxxxx Trust
Company, National Association, as custodian (the "Custodian"), and
Deutsche Bank National Trust Company, as trustee (the "Trustee")
[JPMorgan][Countrywide], certifies to the Depositor and the Trustee, and
their respective officers, directors and affiliates, and with the
knowledge and intent that they will rely upon this certification,
that:
1. Based on our knowledge, the information prepared by
[JPMorgan][Countrywide] and relating to the mortgage loans serviced
by [JPMorgan][Countrywide] pursuant to the Pooling And Servicing
Agreement and provided by [JPMorgan][Countrywide] to the Trustee in
its reports to the Trustee is accurate and complete in all material
respects as of the last day of the period covered by such report;
2. Based on our knowledge, the servicing information required to be
provided to the Trustee by [JPMorgan][Countrywide] pursuant to the
Pooling and Servicing Agreement has been provided to the Trustee;
3. Based upon the review required under the Pooling and Servicing
Agreement, and except as disclosed in its annual compliance
statement required to be delivered pursuant to the Pooling and
Servicing Agreement, [JPMorgan][Countrywide] as of the last day of
the period covered by such annual compliance statement has fulfilled
its obligations under the Pooling and Servicing Agreement; and
4. [JPMorgan][Countrywide] has disclosed to its independent auditor,
who issues the independent auditor's report on the Uniform Single
Attestation Program for Mortgage Bankers for
[JPMorgan][Countrywide], any significant deficiencies relating to
[JPMorgan][Countrywide]'s compliance with minimum servicing
standards.
[JPMORGAN CHASE BANK, NATIONAL ASSOCIATION][COUNTRYWIDE HOME LOANS SERVICING
LP]
Date:
-------------------------
-------------------------------
[Signature]
[Title]
EXHIBIT P
REPRESENTATIONS AND WARRANTIES AGREEMENT
This REPRESENTATIONS AND WARRANTIES AGREEMENT (the "Agreement"),
dated as of March 30, 2005 (the "Closing Date"), is between XXXXXXX XXXXX
MORTGAGE COMPANY ("GSMC" or the "Seller") and GS MORTGAGE SECURITIES CORP. (the
"Depositor" or the "Purchaser").
W I T N E S S E T H:
WHEREAS, GSMC acquired certain mortgage loans (the "Acoustic
Mortgage Loans") set forth on the mortgage loan schedule attached hereto as
Schedule I (the "Acoustic Mortgage Loan Schedule") from Acoustic Home Loans, LLC
("Acoustic") pursuant to that certain Flow Mortgage Loan Purchase and Warranties
Agreement, dated as of November 1, 2004 (the "Acoustic Purchase Agreement"),
between GSMC, as purchaser, and Acoustic, as seller;
WHEREAS, GSMC acquired certain mortgage loans (the "First NLC
Mortgage Loans") set forth on the mortgage loan schedule attached hereto as
Schedule II (the "First NLC Mortgage Loan Schedule") from First NLC Financial
Services, LLC ("First NLC") pursuant to that certain Mortgage Loan Purchase and
Warranties Agreement, dated as of March 25, 2004 (the "Original First NLC
Purchase Agreement"), between GSMC, as purchaser, and First NLC, as seller, as
amended by Amendment No. 1 to Purchase Agreement, dated as of July 15, 2004
("Amendment No. 1") between GSMC and First NLC, and that certain letter dated as
of March 25, 2004 (together with the Original First NLC Purchase Agreement and
Amendment No. 1, the "First NLC Purchase Agreement") between GSMC and First NLC;
WHEREAS, GSMC acquired certain mortgage loans (the "Accredited
Mortgage Loans") set forth on the Accredited mortgage loan schedule attached
hereto as Schedule III (the "Accredited Mortgage Loan Schedule") from Accredited
Home Lenders, Inc. ("Accredited") pursuant to that certain Flow Mortgage Loan
Purchase and Warranties Agreement, dated as of August 1, 2003 (the "Accredited
Purchase Agreement"), between GSMC, as purchaser, and Accredited, as seller;
WHEREAS, GSMC acquired certain mortgage loans (the "Conduit Mortgage
Loans" and together with the Acoustic Mortgage Loans, the First NLC Mortgage
Loans, and the Accredited Mortgage Loans, the "Mortgage Loans") set forth on the
Conduit Mortgage Loan Schedule attached hereto as Schedule IV (the "Conduit
Mortgage Loan Schedule") from various mortgage loan sellers pursuant to certain
Master Loan Purchase Agreements (the "Conduit Purchase Agreements" and together
with the Acoustic Purchase Agreement, the First NLC Purchase Agreement and the
Accredited Purchase Agreement, the "Purchase Agreements"), each between GSMC, as
purchaser, and the applicable mortgage loan seller, as seller;
WHEREAS, pursuant to that certain xxxx of sale, dated as of March
30, 2005, between GSMC and the Depositor, the Mortgage Loans are to be
transferred by GSMC to the Depositor;
WHEREAS, pursuant to that certain Pooling and Servicing Agreement,
dated as of March 1, 2005 (the "Pooling and Servicing Agreement"), among the
Depositor, Countrywide Home Loans Servicing LP, as a Servicer, JPMorgan Chase
Bank, National Association, as a Servicer, X.X. Xxxxxx Trust Company, National
Association, as Custodian (the "Custodian") and Deutsche Bank National Trust
Company, as Trustee (the "Trustee"), the GSAMP Trust 2005-HE2 (the "Trust")
shall issue its Mortgage Pass-Through Certificates, Series 2005-HE2 (the
"Certificates"), representing beneficial ownership interest in the, the assets
of which include, but are not limited to, Mortgage Loans transferred by the
Depositor to the Trust pursuant to the Pooling and Servicing Agreement;
WHEREAS, in connection with the sale of the Mortgage Loans by GSMC
to the Depositor, GSMC shall make various representations and warranties to the
Depositor regarding the Mortgage Loans;
NOW, THEREFORE, in consideration of the foregoing and of the mutual
covenants herein contained, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:
Section 1. Defined Terms.
(a) Unless otherwise defined herein, capitalized terms used herein
shall have the meanings assigned to such terms in the Pooling and Servicing
Agreement. In the event of a conflict between any of the defined terms contained
in this Agreement and the Pooling and Servicing Agreement, the definitions
contained in the Pooling and Servicing Agreement shall control.
(b) The following capitalized terms shall have the meanings assigned
to such terms below:
Accepted Servicing Practices: With respect to any Mortgage Loan
those mortgage servicing practices of prudent mortgage lending institutions
which service mortgage loans of the same type as such Mortgage Loan in the
jurisdiction where the related Mortgaged Property is located.
ALTA: The American Land Title Association, or any successor thereto.
Convertible Mortgage Loan: Any individual Adjustable Rate Mortgage
Loan which contains a provision whereby the Mortgagor is permitted to convert
the Adjustable Rate Mortgage Loan to a Fixed Rate Mortgage Loan in accordance
with the terms of the related Mortgage Note.
Deleted Mortgage Loan: A Mortgage Loan that is repurchased or
replaced or to be replaced with a Qualified Substitute Mortgage Loan by GSMC in
accordance with the terms of this Agreement.
High Cost Loan: A Mortgage Loan classified as (a) a "high cost" loan
under the Home Ownership and Equity Protection Act of 1994 or (b) a "high cost,"
"threshold," "covered" (excluding home loans defined as "covered home loans" in
the New Jersey Home Ownership Security Act of 2002 that were originated between
November 26, 2003 and July 7, 2004), "predatory" or similar loan under any other
applicable state, federal or local law (or a similarly classified loan using
different terminology under a law imposing heightened regulatory scrutiny or
additional legal liability for residential mortgage loans having high interest
rates, points and/or fees)).
Interim Funder: With respect to each MERS Designated Mortgage Loan,
the Person named on the MERS(R) System as the interim funder pursuant to the
MERS Procedures Manual.
Investor: With respect to each MERS Designated Mortgage Loan, the
Person named on the MERS(R) System as the investor pursuant to the MERS
Procedures Manual.
Loan-to-Value Ratio or LTV: With respect to any Acoustic Mortgage
Loan, Accredited Mortgage Loan or Conduit Mortgage Loan, the ratio (expressed as
a percentage) of the outstanding principal amount of the such Mortgage Loan as
of the Cut-off Date (unless otherwise indicated), to the lesser of (a) the
Appraised Value of the Mortgaged Property at origination and (b) if such
Mortgage Loan was made to finance the acquisition of the related Mortgaged
Property (but only if such purchase took place within 12 months of origination,
with respect to each Accredited Mortgage Loan), the purchase price of the
Mortgaged Property, and with respect to any First NLC Mortgage Loan, the ratio
(expressed as a percentage) of the outstanding principal amount of such Mortgage
Loan as of the related date of origination (unless otherwise indicated), to the
Appraised Value of the Mortgaged Property,
MERS Designated Mortgage Loan: Mortgage Loans for which (a) the
Seller has designated or will designate MERS as, and has taken or will take such
action as is necessary to cause MERS to be, the mortgagee of record, as nominee
for the Seller, in accordance with MERS Procedure Manual and (b) the Seller has
designated or will designate the Custodian as the Investor on the MERS(R)
System.
MERS Procedure Manual: The MERS Procedures Manual, as it may be
amended, supplemented or otherwise modified from time to time.
MERS Report: The report from the MERS System listing MERS Designated
Mortgage Loans and other information.
MERS(R) System: MERS mortgage electronic registry system, as more
particularly described in the MERS Procedures Manual.
Monthly Payment: The scheduled monthly payment of principal and
interest on a Mortgage Loan.
Qualified Substitute Mortgage Loan: A mortgage loan eligible to be
substituted by GSMC for a Deleted Mortgage Loan which must, on the date of such
substitution, (i) have an outstanding principal balance, after deduction of all
scheduled payments 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 the outstanding principal balance
of the Deleted Mortgage Loan (the amount of any shortfall will be paid by GSMC
to the Depositor or its designee in the month of substitution); (ii) have a
Mortgage Interest Rate not less than, and not more than 1% greater than, the
Mortgage Interest Rate of the Deleted Mortgage Loan; (iii) have a remaining term
to maturity not greater than, and not more than one year less than, that of the
Deleted Mortgage Loan (iv) be of the same type as the Deleted Mortgage Loan
(i.e., fixed rate or adjustable rate with same Periodic Rate Cap, and Index);
and (v) comply with each representation and warranty (respecting individual
Mortgage Loans) set forth in Section 2 of this Agreement.
RESPA: Real Estate Settlement Procedures Act, as amended from time
to time.
Section 2. Representations and Warranties of GSMC.
(a) As to each Acoustic Mortgage Loan (except as otherwise set forth
on Exhibit V hereto), GSMC hereby makes the representations and warranties
set forth in Exhibit I hereto to the Depositor as of the Closing Date (or
such other date as set forth herein).
(b) As to each First NLC Mortgage Loan (except as otherwise set
forth on Exhibit V hereto), GSMC hereby makes the representations and
warranties set forth in Exhibit II hereto to the Depositor as of the
Closing Date (or such other date as set forth herein).
(c) As to each Accredited Mortgage Loan (except as otherwise set
forth on Exhibit V hereto), GSMC hereby makes the representations and
warranties set forth in Exhibit III hereto to the Depositor as of the
Closing Date (or such other date as set forth herein).
(d) As to each Conduit Mortgage Loan (except as otherwise set forth
on Exhibit V hereto), GSMC hereby makes the representations and warranties
set forth in Exhibit IV hereto to the Depositor as of the Closing Date (or
such other date as set forth herein).
Section 3. Repurchase or Substitution Obligation for Breach of a
Representation or Warranty.
(a) Within 60 days of the earlier of either discovery by or notice
to GSMC of any breach of a representation or warranty which materially and
adversely affects the value of the Mortgage Loans or the interest of the
Depositor therein (or which materially and adversely affects the value of the
applicable Mortgage Loan or the interest of the Depositor therein), GSMC shall
cure such breach in all material respects and, if such breach cannot be cured,
GSMC shall, at the Depositor's option, within sixty (60) calendar days of GSMC's
receipt of request from the Depositor, repurchase such Mortgage Loan at the
Repurchase Price. In the event that such a breach shall involve any
representation or warranty set forth in Section 2 of this Agreement, and such
breach cannot be cured within 60 days of the earlier of either discovery by or
notice to GSMC of such breach, all of the Mortgage Loans materially and
adversely affected thereby shall, at the Depositor's option, be repurchased by
GSMC at the Repurchase Price. Any repurchase of a Mortgage Loan or Loans
pursuant to the foregoing provisions of this Section 3 shall be accomplished by
direct remittance of the Repurchase Price to the Depositor or its designee in
accordance with the Depositor's instructions.
However, if the breach shall involve a representation or warranty
set forth in Section 2 of this Agreement relating to any Mortgage Loan and GSMC
discovers or receives notice of any such breach within two years of the Closing
Date, GSMC shall, at the Depositor's option and provided that GSMC has a
Qualified Substitute Mortgage Loan, rather than repurchase such Mortgage Loan as
provided above, remove such Mortgage Loan (a "Deleted Mortgage Loan") and
substitute in its place a Qualified Substitute Mortgage Loan or Mortgage Loans,
provided that any such substitution shall be effected not later than two years
after the Closing Date. If GSMC has no Qualified Substitute Mortgage Loan, GSMC
shall repurchase the deficient Mortgage Loan. Any repurchase of a Mortgage Loan
or Mortgage Loans pursuant to the foregoing provisions of this Section 3 shall
be accomplished by direct remittance of the Repurchase Price to the Depositor or
its designee in accordance with the Depositor's instructions.
At the time of repurchase or substitution, the Depositor and GSMC
shall arrange for the reassignment of the Deleted Mortgage Loan to GSMC and the
delivery to GSMC of any documents held by the Trustee or the Custodian, as the
case may be, relating to the Deleted Mortgage Loan. In the event of a repurchase
or substitution, GSMC shall, simultaneously with such reassignment, give written
notice to the Depositor that such repurchase or substitution has taken place,
amend the applicable Mortgage Loan Schedule to reflect the withdrawal of the
Deleted Mortgage Loan from this Agreement, and, in the case of substitution,
identify a Qualified Substitute Mortgage Loan and amend the applicable Mortgage
Loan Schedule to reflect the addition of such Qualified Substitute Mortgage Loan
to this Agreement. In connection with any such substitution, GSMC shall be
deemed to have made as to such Qualified Substitute Mortgage Loan the
representations and warranties set forth in this Agreement except that all such
representations and warranties set forth in this Agreement shall be deemed made
as of the date of such substitution. GSMC shall effect such substitution by
delivering to the Trustee or the Custodian or to such other party as the
Depositor may designate in writing for such Qualified Substitute Mortgage Loan
the documents required by Pooling and Servicing Agreement, with the Mortgage
Note endorsed as required by Pooling and Servicing Agreement. No substitution
will be made in any calendar month after the initial Determination Date for such
month. GSMC shall remit directly to the Depositor, or its designee in accordance
with the Depositor's instructions the monthly payment less the Servicing Fee
due, if any, on such Qualified Substitute Mortgage Loan or Mortgage Loans in the
month following the date of such substitution. Monthly payments due with respect
to Qualified Substitute Mortgage Loans in the month of substitution shall be
retained by GSMC. For the month of substitution, distributions to the Depositor
shall include the monthly payment due on any Deleted Mortgage Loan in the month
of substitution, and GSMC shall thereafter be entitled to retain all amounts
subsequently received by GSMC in respect of such Deleted Mortgage Loan.
For any month in which GSMC substitutes a Qualified Substitute
Mortgage Loan for a Deleted Mortgage Loan, GSMC shall determine the amount (if
any) by which the aggregate principal balance of all Qualified Substitute
Mortgage Loans as of the date of substitution is less than the aggregate Stated
Principal Balance of all Deleted Mortgage Loans (after application of scheduled
principal payments due in the month of substitution). The amount of such
shortfall shall be distributed by GSMC directly to the Depositor or its designee
in accordance with the Depositor's instructions within two (2) Business Days of
such substitution.
Any cause of action against GSMC relating to or arising out of the
breach of any representations and warranties made in Section 2 shall accrue as
to any Mortgage Loan upon (i) discovery of such breach by the Depositor or
notice thereof by GSMC to the Depositor, (ii) failure by GSMC to cure such
breach, repurchase such Mortgage Loan or substitute a Qualified Substitute
Mortgage Loan as specified above, and (iii) demand upon GSMC by the Depositor
for compliance with this Agreement.
(b) It is understood and agreed that the obligation of GSMC set
forth in Section 3(a) to repurchase or substitute for a Mortgage Loan in breach
of a representation or warranty contained in Section 2 constitutes the sole
remedy of the Depositor or any other person or entity with respect to such
breach.
Section 4. Term of Representation and Warranties.
The representations and warranties of GSMC set forth in Section 2
shall inure to the benefit of the Depositor and its assigns until all amounts
payable to Certificateholders under the Pooling and Servicing Agreement have
been paid in full.
Section 5. Execution in Counterparts.
This Agreement may be executed in any number of counterparts and by
different parties hereto on separate counterparts, each of which counterparts,
when so executed and delivered, shall be deemed to be an original and all of
which counterparts, taken together, shall constitute but one and the same
Agreement.
Section 6. GOVERNING LAW.
THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.
Section 7. Severability of Provisions.
Any provision of this Agreement which is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining
provisions hereof or affecting the validity or enforceability of such provision
in any other jurisdiction.
Section 8. Captions.
The captions in this Agreement are for convenience of reference only
and shall not define or limit any of the terms or provisions hereof.
Section 9. Successors and Assigns.
This Agreement may not be assigned, pledged or hypothecated by any
party hereto, except that the Depositor's rights under this Agreement may be
assigned to the Trustee and are exercisable by the Trustee (and its successors
and assigns) and will be enforceable by the Trustee. Any entity into which GSMC
or the Depositor may be merged or consolidated shall, without the requirement
for any further writing, be deemed GSMC or the Depositor, respectively,
hereunder.
Section 10. Third Party Beneficiary.
The parties agree that the Trust (including the Trustee and the
related Servicer acting on the Trust's behalf) is an intended third-party
beneficiary of this Agreement with the right to enforce the provisions hereof
and the rights to obtain the benefit of the enforcement of the obligations and
covenants of GSMC under Section 3 of this Agreement as if the Trustee were a
party to this Agreement.
Section 11. Amendments
This Agreement may be amended from time to time by the parties
hereto.
[Remainder of this Page Intentionally Left Blank.]
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed as of the date and year first above written.
XXXXXXX XXXXX MORTGAGE COMPANY
By: Xxxxxxx Sachs Real Estate Funding
Corp., its General Partner
By:
--------------------------------------
Name:
Title:
GS MORTGAGE SECURITIES CORP.
By:
--------------------------------------
Name:
Title:
EXHIBIT I
Representations and Warranties Regarding the Acoustic Mortgage Loans
(a) Acoustic Mortgage Loans as Described. The information set forth
in the Acoustic Mortgage Loan Schedule with respect to the Acoustic
Mortgage Loans is complete, true and correct;
(b) Payments Current. All payments required to be made up to the
Closing Date for the Acoustic Mortgage Loan under the terms of the
Mortgage Note, other than payments for which the related due date was not
thirty or more days prior to the Closing Date, have been made and
credited. No Acoustic Mortgage Loan has been delinquent for thirty or more
days at any time since the origination of the Acoustic Mortgage Loan. The
first Monthly Payment shall be made with respect to the Acoustic Mortgage
Loan on its Due Date or within thirty (30) days of its Due Date, all in
accordance with the terms of the related Mortgage Note;
(c) No Outstanding Charges. There are no defaults in complying with
the terms of the Mortgage, and all taxes, governmental assessments,
insurance premiums, water, sewer and municipal charges, leasehold payments
or ground rents which previously became due and owing have been paid, or
an escrow of funds has been established in an amount sufficient to pay for
every such item which remains unpaid and which has been assessed but is
not yet due and payable. The Seller has not advanced funds, or induced,
solicited or knowingly received any advance of funds by a party other than
the Mortgagor, directly or indirectly, for the payment of any amount
required under the Acoustic Mortgage Loan, except for interest accruing
from the date of the Mortgage Note or date of disbursement of the Acoustic
Mortgage Loan proceeds, whichever is earlier, to the day which precedes by
one month the Due Date of the first installment of principal and interest;
(d) Original Terms Unmodified. The terms of the Mortgage Note and
Mortgage have not been impaired, waived, altered or modified in any
respect, from the date of origination except by a written instrument which
has been recorded, if necessary to protect the interests of the Purchaser,
and which has been delivered to the Custodian or to such other Person as
the Purchaser shall designate in writing, and the terms of which are
reflected in the Acoustic Mortgage Loan Schedule. No Acoustic Mortgage
Loan has been modified so as to restructure the payment obligations or
re-age the Acoustic Mortgage Loan. The substance of any such waiver,
alteration or modification has been approved by the title insurer, if any,
to the extent required by the policy, and its terms are reflected on the
Acoustic Mortgage Loan Schedule, if applicable. No Mortgagor has been
released, in whole or in part, except in connection with an assumption
agreement, approved by the issuer of the title insurer, to the extent
required by the policy, and which assumption agreement is part of the
Acoustic Custodial File delivered to the Custodian or to such other Person
as the Purchaser shall designate in writing and the terms of which are
reflected in the Acoustic Mortgage Loan Schedule;
(e) No Defenses. The Acoustic Mortgage Loan is not subject to any
right of rescission, set-off, counterclaim or defense, including without
limitation the defense of usury, nor will the operation of any of the
terms of the Mortgage Note or the Mortgage, or the exercise of any right
thereunder, render either the Mortgage Note or the Mortgage unenforceable,
in whole or in part, or subject to any right of rescission, set-off,
counterclaim or defense, including without limitation the defense of
usury, and no such right of rescission, set-off, counterclaim or defense
has been asserted with respect thereto, and to the best of the Seller's
knowledge, no Mortgagor was a debtor in any state or Federal bankruptcy or
insolvency proceeding at the time the Acoustic Mortgage Loan was
originated;
(f) Hazard Insurance. Pursuant to the terms of the Mortgage, all
buildings or other improvements upon the Mortgaged Property are insured by
a generally acceptable insurer against loss by fire, hazards of extended
coverage and such other hazards as are provided for in the Xxxxxx Xxx
Guides or by Xxxxxxx Mac, as well as all additional requirements set forth
in Section 2.10 of the Interim Servicing Agreement. If required by the
National Flood Insurance Act of 1968, as amended, each Acoustic Mortgage
Loan is covered by a flood insurance policy meeting the requirements of
the current guidelines of the Federal Insurance Administration is in
effect which policy conforms to Xxxxxx Xxx and Xxxxxxx Mac, as well as all
additional requirements set forth in Section 2.10 of the Interim Servicing
Agreement. All individual insurance policies contain a standard mortgagee
clause naming Acoustic and its successors and assigns as mortgagee, and
all premiums thereon have been paid. The Mortgage obligates the Mortgagor
thereunder to maintain the hazard insurance policy at the Mortgagor's cost
and expense, and on the Mortgagor's failure to do so, authorizes the
holder of the Mortgage to obtain and maintain such insurance at such
Mortgagor's cost and expense, and to seek reimbursement therefor from the
Mortgagor. Where required by state law or regulation, the Mortgagor has
been given an opportunity to choose the carrier of the required hazard
insurance, provided the policy is not a "master" or "blanket" hazard
insurance policy covering a condominium, or any hazard insurance policy
covering the common facilities of a planned unit development;
(g) Compliance with Applicable Laws. Any and all requirements of any
federal, state or local law including, without limitation, usury,
truth-in-lending, real estate settlement procedures, consumer credit
protection, equal credit opportunity and disclosure laws or unfair and
deceptive practices laws applicable to the Acoustic Mortgage Loan
including, without limitation, any provisions relating to Prepayment
Premiums, have been complied with, the consummation of the transactions
contemplated hereby will not involve the violation of any such laws or
regulations. Each Acoustic Mortgage Loan at the time it was made complied
in all material respects with applicable local, state, and federal laws,
including, but not limited to, all applicable predatory and abusive
lending laws;
(h) No Satisfaction of Mortgage. The Mortgage has not been
satisfied, canceled, subordinated or rescinded, in whole or in part, and
the Mortgaged Property has not been released from the lien of the
Mortgage, in whole or in part, nor has any instrument been executed that
would effect any such release, cancellation, subordination or rescission.
The Seller has not waived the performance by the Mortgagor of any action,
if the Mortgagor's failure to perform such action would cause the Acoustic
Mortgage Loan to be in default, nor has the Seller waived any default
resulting from any action or inaction by the Mortgagor;
(i) Location and Type of Mortgaged Property. The Mortgaged Property
is located in the state identified in the Acoustic Mortgage Loan Schedule
and consists of real property with a detached single family residence
erected thereon, or a two- to four-family dwelling, or an individual
condominium unit in a low-rise condominium project, or an individual unit
in a planned unit development or a de minimis planned unit development
which is in each case four stories or less, provided, however, that any
mobile home (double wide only) or manufactured dwelling shall conform with
the applicable Xxxxxx Mae and Xxxxxxx Mac requirements regarding such
dwellings and that no Acoustic Mortgage Loan is secured by a single parcel
of real property with a cooperative housing corporation, a log home or a
mobile home erected thereon or by a mixed-use property, a property in
excess of 10 acres, or other unique property types;
(j) Valid First or Second Lien. The Mortgage is a valid, subsisting,
enforceable and perfected, first or second lien (as applicable) on the
Mortgaged Property, including all buildings and improvements on the
Mortgaged Property and all installations and mechanical, electrical,
plumbing, heating and air conditioning systems located in or annexed to
such buildings, and all additions, alterations and replacements made at
any time with respect to the foregoing. The lien of the Mortgage is
subject only to:
(1) the lien of current real property taxes and assessments
not yet due and payable;
(2) covenants, conditions and restrictions, rights of way,
easements and other matters of the public record as of the date of
recording acceptable to prudent mortgage lending institutions
generally and specifically referred to in the lender's title
insurance policy delivered to the originator of the Acoustic
Mortgage Loan and (a) specifically referred to or otherwise
considered in the appraisal made for the originator of the Acoustic
Mortgage Loan or (b) which do not adversely affect the Appraised
Value of the Mortgaged Property set forth in such appraisal;
(3) other matters to which like properties are commonly
subject which do not materially interfere with the benefits of the
security intended to be provided by the Mortgage or the use,
enjoyment, value or marketability of the related Mortgaged Property;
and
(4) with respect to Second Lien Mortgage Loans, the lien of
the first mortgage on the Mortgaged Property.
Any security agreement, chattel mortgage or equivalent document
related to and delivered in connection with the Acoustic Mortgage Loan
establishes and creates a valid, subsisting, enforceable and perfected (A) first
lien and first priority security interest with respect to each first lien
mortgage loan, or (B) second lien and second priority security interest with
respect to each Second Lien Mortgage Loan, in either case, on the property
described therein and Seller has full right to sell and assign the same to
Purchaser.
(k) Validity of Mortgage Documents. The Mortgage Note and the
Mortgage and any other agreement executed and delivered by a Mortgagor in
connection with a Acoustic Mortgage Loan are genuine, and each is the
legal, valid and binding obligation of the maker thereof enforceable in
accordance with its terms (including, without limitation, any provisions
therein relating to Prepayment Premiums). To the best of the Seller's
knowledge, all parties to the Mortgage Note, the Mortgage and any other
such related agreement had legal capacity to enter into the Acoustic
Mortgage Loan and to execute and deliver the Mortgage Note, the Mortgage
and any such agreement, and the Mortgage Note, the Mortgage and any other
such related agreement have been duly and properly executed by other such
related parties;
(l) Full Disbursement of Proceeds. The Acoustic Mortgage Loan has
been closed and the proceeds of the Acoustic Mortgage Loan have been fully
disbursed and there is no requirement for future advances thereunder, and
any and all requirements as to completion of any on-site or off-site
improvement and as to disbursements of any escrow funds therefor have been
complied with. All costs, fees and expenses incurred in making or closing
the Acoustic Mortgage Loan and the recording of the Mortgage were paid,
and the Mortgagor is not entitled to any refund of any amounts paid or due
under the Mortgage Note or Mortgage;
(m) Ownership. The Seller is the sole owner of record and holder of
the Acoustic Mortgage Loan and the indebtedness evidenced by each Mortgage
Note. The Acoustic Mortgage Loan is not assigned or pledged, and the
Seller has good, indefeasible and marketable title thereto, and has full
right to transfer and sell the Acoustic Mortgage Loan to the Purchaser
free and clear of any encumbrance, equity, participation interest, lien,
pledge, charge, claim or security interest, and has full right and
authority subject to no interest or participation of, or agreement with,
any other party, to sell and assign each Acoustic Mortgage Loan pursuant
to this Agreement;
(n) Doing Business. All parties which have had any interest in the
Acoustic Mortgage Loan, whether as mortgagee, assignee, pledgee or
otherwise, are (or, during the period in which they held and disposed of
such interest, were) (1) in compliance with any and all applicable
licensing requirements of the laws of the state wherein the Mortgaged
Property is located, and (2) either (i) organized under the laws of such
state, or (ii) qualified to do business in such state, or (iii) a federal
savings and loan association, a savings bank or a national bank having a
principal office in such state, or (3) not doing business in such state;
(o) Title Insurance. The Acoustic Mortgage Loan is covered by an
ALTA lender's title insurance policy, or with respect to any Acoustic
Mortgage Loan for which the related Mortgaged Property is located in
California a CLTA lender's title insurance policy, or other generally
acceptable form of policy or insurance acceptable to Xxxxxx Xxx or Xxxxxxx
Mac and each such title insurance policy is issued by a title insurer
acceptable to Xxxxxx Mae or Xxxxxxx Mac and qualified to do business in
the jurisdiction where the Mortgaged Property is located, insuring the
Seller, its successors and assigns, as to the first priority lien (with
respect to first lien Acoustic Mortgage Loans) or second priority lien
(with respect to Second Lien Mortgage Loans) of the Mortgage in the
original principal amount of the Acoustic Mortgage Loan, subject only to
the exceptions contained in clauses (1), (2), (3) and (4) of paragraph (j)
of this Exhibit I, and in the case of adjustable rate Acoustic Mortgage
Loans, against any loss by reason of the invalidity or unenforceability of
the lien resulting from the provisions of the Mortgage providing for
adjustment to the Mortgage Interest Rate and Monthly Payment. Where
required by state law or regulation, the Mortgagor has been given the
opportunity to choose the carrier of the required mortgage title
insurance. Additionally, such lender's title insurance policy
affirmatively insures ingress and egress, and against encroachments by or
upon the Mortgaged Property or any interest therein. The title policy does
not contain any special exceptions (other than the standard exclusions)
for zoning and uses and has been marked to delete the standard survey
exceptions or to replace the standard survey exception with a specific
survey reading. The Seller, its successor and assigns, are the sole
insureds of such lender's title insurance policy, and such lender's title
insurance policy is valid and remains in full force and effect and will be
in force and effect upon the consummation of the transactions contemplated
by this Agreement. No claims have been made under such lender's title
insurance policy, and no prior holder of the related Mortgage, including
the Seller, has done, by act or omission, anything which would impair the
coverage of such lender's title insurance policy;
(p) No Defaults. Other than payments due but not yet 30 days or more
delinquent, to the best of the Seller's knowledge, there is no default,
breach, violation or event which would permit acceleration existing under
the Mortgage or the Mortgage Note and no event which, with the passage of
time or with notice and the expiration of any grace or cure period, would
constitute a default, breach, violation or event which would permit
acceleration, and neither the Seller nor any of its affiliates nor any of
their respective predecessors, have waived any default, breach, violation
or event which would permit acceleration. With respect to each Second Lien
Mortgage Loan, (i) the prior mortgage is in full force and effect, (ii)
there is no default, breach, violation or event of acceleration existing
under such prior mortgage or the related mortgage note, (iii) as of the
Closing Date, no event which, with the passage of time or with notice and
the expiration of any grace or cure period, would constitute a default,
breach, violation or event of acceleration thereunder, and either (A) the
prior mortgage contains a provision which allows or (B) applicable law
requires, the mortgagee under the Second Lien Mortgage Loan to receive
notice of, and affords such mortgagee an opportunity to cure any default
by payment in full or otherwise under the prior mortgage;
(q) No Mechanics' Liens. There are no mechanics' or similar liens or
claims which have been filed for work, labor or material (and no rights
are outstanding that under law could give rise to such liens) affecting
the related Mortgaged Property which are or may be liens prior to, or
equal or coordinate with, the lien of the related Mortgage; provided,
however, that this warranty shall be deemed not to have been made at the
time of the initial issuance of the Certificates if a title policy
affording, in substance, the same protection afforded by this warranty is
furnished to the Trustee by the Seller;
(r) Location of Improvements; No Encroachments. All improvements
which were considered in determining the Appraised Value of the Mortgaged
Property lay wholly within the boundaries and building restriction lines
of the Mortgaged Property, and no improvements on adjoining properties
encroach upon the Mortgaged Property. To the best of the Seller's
knowledge, no improvement located on or being part of the Mortgaged
Property is in violation of any applicable zoning law or regulation;
(s) Origination; Payment Terms. The Acoustic Mortgage Loan was
originated by a mortgagee approved by the Secretary of Housing and Urban
Development pursuant to Sections 203 and 211 of the National Housing Act,
a savings and loan association, a savings bank, a commercial bank, credit
union, insurance company or other similar institution which is supervised
and examined by a federal or state authority. The documents, instruments
and agreements submitted for loan underwriting were not falsified and
contain no untrue statement of material fact or omit to state a material
fact required to be stated therein or necessary to make the information
and statements therein not misleading. No Acoustic Mortgage Loan contains
terms or provisions which would result in negative amortization. Principal
payments on the Acoustic Mortgage Loan commenced no more than sixty days
after funds were disbursed in connection with the Acoustic Mortgage Loan.
The Mortgage Interest Rate as well as the Lifetime Rate Cap and the
Periodic Mortgage Interest Rate Cap, are as set forth on the Acoustic
Mortgage Loan Schedule. Except with respect to Interest Only Mortgage
Loans, the Mortgage Note is payable in equal monthly installments of
principal and interest sufficient to amortize the Acoustic Mortgage Loan
fully by the stated maturity date, over an original term of not more than
thirty years from commencement of amortization with interest calculated
and payable in arrears. All installments of interest with respect to
Adjustable Rate Mortgage Loans are subject to change due to the
adjustments to the Mortgage Interest Rate on each Adjustment Date. The
Acoustic Mortgage Loan is payable on the first day of each month. No
Acoustic Mortgage Loan is a balloon mortgage loan that has an original
stated maturity of less than seven (7) years;
(t) Customary Provisions. The Mortgage contains customary and
enforceable provisions such as to render the rights and remedies of the
holder thereof adequate for the realization against the Mortgaged Property
of the benefits of the security provided thereby, including, (i) in the
case of a Mortgage designated as a deed of trust, by trustee's sale, and
(ii) otherwise by judicial foreclosure. There is no homestead or other
exemption available to a Mortgagor which would interfere with the right to
sell the Mortgaged Property at a trustee's sale or the right to foreclose
the Mortgage, subject to applicable federal and state laws and judicial
precedent with respect to bankruptcy and right of redemption or similar
law;
(u) Conformance with Underwriting Guidelines. The Acoustic Mortgage
Loan was underwritten in accordance with the Underwriting Guidelines (a
copy of which is attached as Exhibit H to the Acoustic Purchase
Agreement);
(v) Occupancy of the Mortgaged Property. To the best of the Seller's
knowledge, The Mortgaged Property is lawfully occupied under applicable
law. All inspections, licenses and certificates required to be made or
issued with respect to all occupied portions of the Mortgaged Property
and, with respect to the use and occupancy of the same, including but not
limited to certificates of occupancy and fire underwriting certificates,
have been made or obtained from the appropriate authorities;
(w) Mortgaged Property Undamaged; No Condemnation Proceedings. There
is no proceeding pending or, to the Seller's knowledge, threatened for the
total or partial condemnation of the Mortgaged Property. The Mortgaged
Property is undamaged by waste, fire, earthquake or earth movement,
windstorm, flood, hurricane, tornado or other casualty so as to affect
adversely the value of the Mortgaged Property as security for the Acoustic
Mortgage Loan or the use for which the premises were intended. There have
not been any condemnation proceedings with respect to the Mortgaged
Property and the Seller has no knowledge of any such proceedings in the
future;
(x) Prior Servicing. Each Acoustic Mortgage Loan has been serviced
in strict compliance with Accepted Servicing Practices;
(y) Credit Information. As to each consumer report (as defined in
the Fair Credit Reporting Act, Public Law 91-508) or other credit
information furnished by the Seller to the Purchaser, that Seller has full
right and authority and is not precluded by law or contract from
furnishing such information to the Purchaser and the Purchaser is not
precluded by the terms of the Mortgage Loan Documents from furnishing the
same to any subsequent or prospective purchaser of such Mortgage. The
Seller shall hold the Purchaser harmless from any and all damages, losses,
costs and expenses (including attorney's fees) arising from disclosure of
credit information in connection with the Purchaser's secondary marketing
operations and the purchase and sale of mortgages. The Seller has in its
capacity as servicer, for each Acoustic Mortgage Loan, fully furnished, in
accordance with the Fair Credit Reporting Act and its implementing
regulations, accurate and complete information (e.g., favorable and
unfavorable) on its borrower credit files to Equifax, Experian and Trans
Union Credit Information Company (three of the credit repositories), on a
monthly basis. The Servicer will transmit full-file credit reporting data
for each Acoustic Mortgage Loan pursuant to Xxxxxx Xxx Guide Announcement
95-19 and that for each Acoustic Mortgage Loan, Servicer agrees it shall
report one of the following statuses each month as follows: new
origination, current, delinquent (30-, 60-, 90-days, etc.), foreclosed, or
charged-off.
(z) Leaseholds. If the Acoustic Mortgage Loan is secured by a
long-term residential lease, (1) the lessor under the lease holds a fee
simple interest in the land; (2) the terms of such lease expressly permit
the mortgaging of the leasehold estate, the assignment of the lease
without the lessor's consent and the acquisition by the holder of the
Mortgage of the rights of the lessee upon foreclosure or assignment in
lieu of foreclosure or provide the holder of the Mortgage with
substantially similar protections; (3) the terms of such lease do not (a)
allow the termination thereof upon the lessee's default without the holder
of the Mortgage being entitled to receive written notice of, and
opportunity to cure, such default, (b) allow the termination of the lease
in the event of damage or destruction as long as the Mortgage is in
existence, (c) prohibit the holder of the Mortgage from being insured (or
receiving proceeds of insurance) under the hazard insurance policy or
policies relating to the Mortgaged Property or (d) permit any increase in
rent other than pre-established increases set forth in the lease; (4) the
original term of such lease is not less than 15 years; (5) the term of
such lease does not terminate earlier than five years after the maturity
date of the Mortgage Note; and (6) the Mortgaged Property is located in a
jurisdiction in which the use of leasehold estates in transferring
ownership in residential properties is a widely accepted practice;
(aa) Prepayment Premium. The Acoustic Mortgage Loan is subject to a
Prepayment Premium as provided in the related Mortgage Note except as set
forth on the Acoustic Mortgage Loan Schedule. With respect to each
Acoustic Mortgage Loan that has a Prepayment Premium feature, each such
Prepayment Premium is enforceable and will be enforced by the Seller for
the benefit of the Purchaser, and each Prepayment Premium is permitted
pursuant to federal, state and local law. Each such Prepayment Premium is
in an amount no more than the maximum amount permitted under applicable
law and no such Prepayment Premium may be imposed for a term in excess of
five (5) years with respect to Acoustic Mortgage Loans originated prior to
October, 1, 2002. With respect to Acoustic Mortgage Loans originated on or
after October 1, 2002, the duration of the prepayment period shall not
exceed three (3) years from the date of the Mortgage Note unless the
Acoustic Mortgage Loan was modified to reduce the prepayment period to no
more than three years from the date of the note and the Mortgagor was
notified in writing of such reduction in prepayment period. With respect
to any Acoustic Mortgage Loan that contains a provision permitting
imposition of a premium upon a prepayment prior to maturity: (i) prior to
the loan's origination, the borrower agreed to such premium in exchange
for a monetary benefit, including but not limited to a rate or fee
reduction, (ii) prior to the loan's origination, the borrower was offered
the option of obtaining a mortgage loan that did not require payment of
such a premium, (iii) the prepayment premium is disclosed to the borrower
in the loan documents pursuant to applicable state, local and federal law,
and (iv) notwithstanding any state, local or federal law to the contrary,
the Servicer shall not impose such prepayment premium in any instance when
the mortgage debt is accelerated as the result of the borrower's default
in making the loan payments;
(bb) Predatory Lending Regulations. None of the Acoustic Mortgage
Loans are (i) High Cost Loans, (ii) covered by the Home Ownership and
Equity Protection Act of 1994, (iii) in violation of, or classified as
"high cost", "threshold," "predatory" or "covered" loans under, any other
applicable state, federal or local law, or (iv) originated on or after
October 1, 2002 through March 6, 2003 and governed by the Georgia Fair
Lending Act. No predatory or deceptive lending practices, including,
without limitation, the extension of credit without regard to the ability
of the Mortgagor to repay and the extension of credit which has no
apparent benefit to the Mortgagor, were employed in the origination of the
Acoustic Mortgage Loan. Each Acoustic Mortgage Loan is in compliance with
the anti-predatory lending eligibility for purchase requirements of Xxxxxx
Mae's Selling Guide. No Acoustic Mortgage Loan is a High Cost Loan or
Covered Loan, as applicable (as such terms are defined in the then current
Standard & Poor's LEVELS(R) Glossary);
(cc) Single-premium Credit Life Insurance Policy. In connection with
the origination of any Acoustic Mortgage Loan, no proceeds from any
Acoustic Mortgage Loan were used to finance or acquire a single-premium
credit life insurance policy. No Mortgagor was required to purchase any
single premium credit insurance policy (e.g., life, disability, accident,
unemployment, or health insurance product) or debt cancellation agreement
as a condition of obtaining the extension of credit. No Mortgagor obtained
a prepaid single premium credit insurance policy (e.g., life, disability,
accident, unemployment, mortgage, or health insurance) in connection with
the origination of the Acoustic Mortgage Loan; No proceeds from any
Acoustic Mortgage Loan were used to purchase single premium credit
insurance policies or debt cancellation agreements as part of the
origination of, or as a condition to closing, such Acoustic Mortgage Loan;
(dd) Qualified Mortgage. The Acoustic Mortgage Loan is a "qualified
mortgage" within the meaning of Section 860G(a)(3) of the Code;
(ee) LTV. No Acoustic Mortgage Loan has a LTV greater than 100%;
(ff) Arbitration. With respect to any Acoustic Mortgage Loan
originated on or after August 1, 2004, neither the related Mortgage nor
the related Mortgage Note requires the borrower to submit to arbitration
to resolve any dispute arising out of or relating in any way to the
Acoustic Mortgage Loan transaction; and
(gg) Delivery to the Trustee. With respect to each Acoustic Mortgage
Loan, GSMC is in possession of a complete Mortgage File except for the
documents which have been delivered to the Trustee or which have been
submitted for recording and not yet returned.
EXHIBIT II
Representations and Warranties Regarding the First NLC Mortgage Loans
(a) First NLC Mortgage Loans as Described. The information set forth
in the First NLC Mortgage Loan Schedule with respect to the First NLC
Mortgage Loans is complete, true and correct;
(b) Payments Current. All payments required to be made up to the
Closing Date for the First NLC Mortgage Loan under the terms of the
Mortgage Note, other than payments not yet 30 days delinquent, have been
made and credited. No payment required under the First NLC Mortgage Loan
is 30 days or more delinquent nor has any payment under the First NLC
Mortgage Loan been 30 days or more delinquent at any time since the
origination of the First NLC Mortgage Loan;
(c) No Outstanding Charges. Except for payment defaults of less than
30 days, there are no defaults in complying with the terms of the
Mortgage, and all taxes, governmental assessments, insurance premiums,
water, sewer and municipal charges, leasehold payments or ground rents
which previously became due and owing have been paid, or an escrow of
funds has been established in an amount sufficient to pay for every such
item which remains unpaid and which has been assessed but is not yet due
and payable. The Seller has not advanced funds, or induced, solicited or
knowingly received any advance of funds by a party other than the
Mortgagor, directly or indirectly, for the payment of any amount required
under the First NLC Mortgage Loan, except for interest accruing from the
date of the Mortgage Note or date of disbursement of the First NLC
Mortgage Loan proceeds, whichever is earlier, to the date which precedes
by one month the Due Date of the first installment of principal and
interest;
(d) Original Terms Unmodified. The terms of the Mortgage Note and
Mortgage have not been impaired, waived, altered or modified in any
respect, from the date of origination except by a written instrument which
has been recorded, if necessary to protect the interests of the Purchaser,
and which has been delivered to the Custodian or to such other Person as
the Purchaser shall designate in writing, and the terms of which are
reflected in the First NLC Mortgage Loan Schedule. No First NLC Mortgage
Loan has been modified so as to restructure the payment obligations or
re-age the First NLC Mortgage Loan. The substance of any such waiver,
alteration or modification has been approved by the title insurer, if any,
to the extent required by the policy, and its terms are reflected on the
First NLC Mortgage Loan Schedule, if applicable. No Mortgagor has been
released, in whole or in part, except in connection with an assumption
agreement, approved by the issuer of the title insurer, to the extent
required by the policy, and which assumption agreement is part of the
Custodial File delivered to the Custodian or to such other Person as the
Purchaser shall designate in writing and the terms of which are reflected
in the First NLC Mortgage Loan Schedule;
(e) No Defenses. The First NLC Mortgage Loan is not subject to any
right of rescission, set-off, counterclaim or defense, including without
limitation the defense of usury, nor will the operation of any of the
terms of the Mortgage Note or the Mortgage, or the exercise of any right
thereunder, render either the Mortgage Note or the Mortgage unenforceable,
in whole or in part, or subject to any right of rescission, set-off,
counterclaim or defense, including without limitation the defense of
usury, and no such right of rescission, set-off, counterclaim or defense
has been asserted with respect thereto, and to the best of the Seller's
knowledge, no Mortgagor was a debtor in any state or federal bankruptcy or
insolvency proceeding at, or subsequent to, the time the First NLC
Mortgage Loan was originated;
(f) Hazard Insurance. Pursuant to the terms of the Mortgage, all
buildings or other improvements upon the Mortgaged Property are insured by
a generally acceptable insurer against loss by fire, hazards of extended
coverage and such other hazards as are customary in the area where the
Mortgaged Property is located, in an amount which is at least equal to the
lesser of (i) the maximum insurable value of the improvements securing
such First NLC Mortgage Loan and (ii) the greater of (a) the outstanding
principal balance of the First NLC Mortgage Loan and (b) an amount such
that the proceeds thereof shall be sufficient to prevent the Mortgagor or
the loss payee from becoming a co-insurer. If required by the National
Flood Insurance Act of 1968, as amended, each First NLC Mortgage Loan is
covered by a flood insurance policy meeting the requirements of the
current guidelines of the Federal Insurance Administration as in effect
with a generally acceptable insurance carrier rated A:VI or better in
Best's in an amount representing coverage equal to the lesser of (i) the
minimum amount required, under the terms of coverage, to compensate for
any damage or loss on a replacement cost basis (or the unpaid balance of
the mortgage if replacement cost coverage is not available for the type of
building insured) and (ii) the maximum amount of insurance which is
available under the Flood Disaster Protection Act of 1973, as amended. All
individual insurance policies contain a standard mortgagee clause naming
First NLC and its successors and assigns as mortgagee, and all premiums
thereon have been paid and such policies may not be reduced, terminated or
cancelled without 30 days' prior written notice to the mortgagee. The
Mortgage obligates the Mortgagor thereunder to maintain the hazard
insurance policy at the Mortgagor's cost and expense, and on the
Mortgagor's failure to do so, authorizes the holder of the Mortgage to
obtain and maintain such insurance at such Mortgagor's cost and expense,
and to seek reimbursement therefor from the Mortgagor. Where required by
state law or regulation, the Mortgagor has been given an opportunity to
choose the carrier of the required hazard insurance, provided the policy
is not a "master" or "blanket" hazard insurance policy covering a
condominium, or any hazard insurance policy covering the common facilities
of a planned unit development;
(g) Compliance with Applicable Laws. Any and all requirements of any
federal, state or local law including, without limitation, usury,
truth-in-lending, real estate settlement procedures, consumer credit
protection, equal credit opportunity and disclosure laws or unfair and
deceptive practices laws applicable to the First NLC Mortgage Loan
including, without limitation, any provisions relating to Prepayment
Premiums, have been complied with, the consummation of the transactions
contemplated hereby will not involve the violation of any such laws or
regulations. Each First NLC Mortgage Loan at the time it was made complied
in all material respects with applicable local, state, and federal laws,
including, but not limited to, all applicable predatory and abusive
lending laws;
(h) No Satisfaction of Mortgage. The Mortgage has not been
satisfied, canceled, subordinated or rescinded, in whole or in part, and
the Mortgaged Property has not been released from the lien of the
Mortgage, in whole or in part, nor has any instrument been executed that
would effect any such release, cancellation, subordination or rescission.
The Seller has not waived the performance by the Mortgagor of any action,
if the Mortgagor's failure to perform such action would cause the First
NLC Mortgage Loan to be in default, nor has the Seller waived any default
resulting from any action or inaction by the Mortgagor;
(i) Location and Type of Mortgaged Property. The Mortgaged Property
is a fee simple property located in the state identified in the First NLC
Mortgage Loan Schedule except that with respect to real property located
in jurisdictions in which the use of leasehold estates for residential
properties is a widely-accepted practice, the Mortgaged Property may be a
leasehold estate and consists of a single parcel of real property with a
detached single family residence erected thereon, or a two- to four-family
dwelling, or an individual residential condominium unit in a low-rise
condominium project, or an individual unit in a planned unit development
and that no residence or dwelling is (i) a mobile home or (ii) a
manufactured home;
(j) Valid First or Second Lien. Each Mortgage is a valid and
subsisting first or second lien (as applicable) of record on a single
parcel of real estate constituting the Mortgaged Property, including all
buildings and improvements on the Mortgaged Property and all installations
and mechanical, electrical, plumbing, heating and air conditioning systems
located in or annexed to such buildings, and all additions, alterations
and replacements made at any time, with respect to the related First NLC
Mortgage Loan, which exceptions are generally acceptable to prudent
mortgage lending companies, and such other exceptions to which similar
properties are commonly subject and which do not individually, or in the
aggregate, materially and adversely affect the benefits of the security
intended to be provided by such Mortgage. The lien of the Mortgage is
subject only to:
(1) the lien of current real property taxes and assessments
not yet due and payable;
(2) covenants, conditions and restrictions, rights of way,
easements and other matters of the public record as of the date of
recording acceptable to prudent mortgage lending institutions
generally and specifically referred to in the lender's title
insurance policy delivered to the originator of the First NLC
Mortgage Loan and (a) specifically referred to or otherwise
considered in the appraisal made for the originator of the First NLC
Mortgage Loan or (b) which do not adversely affect the Appraised
Value of the Mortgaged Property set forth in such appraisal;
(3) other matters to which like properties are commonly
subject which do not materially interfere with the benefits of the
security intended to be provided by the Mortgage or the use,
enjoyment, value or marketability of the related Mortgaged Property;
and
(4) with respect to Second Lien Mortgage Loans, the lien of
the first mortgage on the Mortgaged Property.
Any security agreement, chattel mortgage or equivalent document
related to and delivered in connection with the First NLC Mortgage Loan
establishes and creates a valid, subsisting, enforceable and perfected (A) first
lien and first priority security interest with respect to each first lien
mortgage loan, or (B) second lien and second priority security interest with
respect to each Second Lien Mortgage Loan, in either case, on the property
described therein and the Seller has full right to sell and assign the same to
Purchaser;
(k) Validity of Mortgage Documents. The Mortgage Note and the
Mortgage and any other agreement executed and delivered by a Mortgagor in
connection with a First NLC Mortgage Loan are genuine, and each is the
legal, valid and binding obligation of the maker thereof enforceable in
accordance with its terms. To the best of the Seller's knowledge, all
parties to the Mortgage Note, the Mortgage and any other such related
agreement had legal capacity to enter into the First NLC Mortgage Loan and
to execute and deliver the Mortgage Note, the Mortgage and any such
agreement, and the Mortgage Note, the Mortgage and any other such related
agreement have been duly and properly executed by other such related
parties;
(l) Full Disbursement of Proceeds. The First NLC Mortgage Loan has
been closed and the proceeds of the First NLC Mortgage Loan have been
fully disbursed and there is no requirement for future advances
thereunder, and any and all requirements as to completion of any on-site
or off-site improvement and as to disbursements of any escrow funds
therefor have been complied with. All costs, fees and expenses incurred in
making or closing the First NLC Mortgage Loan and the recording of the
Mortgage were paid, and the Mortgagor is not entitled to any refund of any
amounts paid or due under the Mortgage Note or Mortgage;
(m) Ownership. The Seller is the sole owner of record and holder of
the First NLC Mortgage Loan and the indebtedness evidenced by each
Mortgage Note. The First NLC Mortgage Loan is not assigned or pledged, and
the Seller has good, indefeasible and marketable title thereto, and has
full right to transfer and sell the First NLC Mortgage Loan to the
Purchaser free and clear of any encumbrance, equity, participation
interest, lien, pledge, charge, claim or security interest, and has full
right and authority subject to no interest or participation of, or
agreement with, any other party, to sell and assign each First NLC
Mortgage Loan pursuant to this Agreement;
(n) Doing Business. All parties which have had any interest in the
First NLC Mortgage Loan, whether as mortgagee, assignee, pledgee or
otherwise, are (or, during the period in which they held and disposed of
such interest, were) (1) in compliance with any and all applicable
licensing requirements of the laws of the state wherein the Mortgaged
Property is located, and (2) either (i) organized under the laws of such
state, or (ii) qualified to do business in such state, or (iii) a federal
savings and loan association, a savings bank or a national bank having a
principal office in such state, or (3) not doing business in such state;
(o) LTV. No First NLC Mortgage Loan has a LTV greater than 100%;
(p) Title Insurance. The First NLC Mortgage Loan is covered by an
ALTA lender's title insurance policy, or with respect to any First NLC
Mortgage Loan for which the related Mortgaged Property is located in
California a CLTA lender's title insurance policy, and each such title
insurance policy is issued by a title insurer and qualified to do business
in the jurisdiction where the Mortgaged Property is located, insuring the
Seller, its successors and assigns, as to the first priority lien (with
respect to first lien First NLC Mortgage Loans) or second priority lien
(with respect to Second Lien Mortgage Loans) of the Mortgage in the
original principal amount of the First NLC Mortgage Loan, subject only to
the exceptions contained in clauses (1), (2), (3) and (4) of paragraph (j)
of this Exhibit II, and in the case of Adjustable Rate Mortgage Loans,
against any loss by reason of the invalidity or unenforceability of the
lien resulting from the provisions of the Mortgage providing for
adjustment to the Mortgage Interest Rate and Monthly Payment. Where
required by state law or regulation, the Mortgagor has been given the
opportunity to choose the carrier of the required mortgage title
insurance. Additionally, such lender's title insurance policy
affirmatively insures ingress and egress, and against encroachments by or
upon the Mortgaged Property or any interest therein. The title policy does
not contain any special exceptions (other than the standard exclusions)
for zoning and uses and has been marked to delete the standard survey
exception or to replace the standard survey exception with a specific
survey reading. The Seller, its successor and assigns, are the sole
insureds of such lender's title insurance policy, and such lender's title
insurance policy is valid and remains in full force and effect and will be
in force and effect upon the consummation of the transactions contemplated
by this Agreement. No claims are pending under such lender's title
insurance policy, and no prior holder of the related Mortgage, including
the Seller, has done, by act or omission, anything which would impair the
coverage of such lender's title insurance policy;
(q) No Defaults. To the best of the Seller's knowledge, there is no
default, breach, violation or event which would permit acceleration
existing under the Mortgage or the Mortgage Note and no event which, with
the passage of time or with notice and the expiration of any grace or cure
period, would constitute a default, breach, violation or event which would
permit acceleration, and neither the Seller nor any of its affiliates nor
any of their respective predecessors, have waived any default, breach,
violation or event which would permit acceleration. With respect to each
Second Lien Mortgage Loan, (i) the prior mortgage is in full force and
effect, (ii) there is no default, breach, violation or event of
acceleration existing under such prior mortgage or the related mortgage
note, (iii) no event which, with the passage of time or with notice and
the expiration of any grace or cure period, would constitute a default,
breach, violation or event of acceleration thereunder, and either (A) the
prior mortgage contains a provision which allows or (B) applicable law
requires, the mortgagee under the Second Lien Mortgage Loan to receive
notice of, and affords such mortgagee an opportunity to cure any default
by payment in full or otherwise under the prior mortgage;
(r) No Mechanics' Liens. There are no mechanics' or similar liens or
claims which have been filed for work, labor or material (and no rights
are outstanding that under law could give rise to such liens) affecting
the related Mortgaged Property which are or may be liens prior to, or
equal or coordinate with, the lien of the related Mortgage; provided,
however, that this warranty shall be deemed not to have been made at the
time of the initial issuance of the Certificates if a title policy
affording, in substance, the same protection afforded by this warranty is
furnished to the Trustee by the Seller;
(s) Location of Improvements; No Encroachments. All improvements
which were considered in determining the Appraised Value of the Mortgaged
Property lay wholly within the boundaries and building restriction lines
of the Mortgaged Property, and no improvements on adjoining properties
encroach upon the Mortgaged Property. To the best of the Seller's
knowledge, no improvement located on or being part of the Mortgaged
Property is in violation of any applicable zoning law or regulation;
(t) Origination; Payment Terms. The First NLC Mortgage Loan was
originated by a mortgagee approved by the Secretary of Housing and Urban
Development pursuant to Sections 203 and 211 of the National Housing Act,
savings and loan association, a savings bank, a commercial bank, credit
union, insurance company or other similar institution which is supervised
and examined by a federal or state authority. The documents, instruments
and agreements submitted for loan underwriting were not falsified and
contain no untrue statement of material fact or omit to state a material
fact required to be stated therein or necessary to make the information
and statements therein not misleading. No First NLC Mortgage Loan contains
terms or provisions which would result in negative amortization. Principal
payments on the First NLC Mortgage Loan commenced no more than sixty days
after funds were disbursed in connection with the First NLC Mortgage Loan.
The Mortgage Interest Rate as well as the Lifetime Rate Cap and the
Periodic Mortgage Interest Rate Cap are as set forth on the First NLC
Mortgage Loan Schedule. The Mortgage Note is payable in equal monthly
installments of principal and interest, which installments of interest,
with respect to Adjustable Rate Mortgage Loans, are subject to change due
to the adjustments to the Mortgage Interest Rate on each Adjustment Date,
with interest calculated and payable in arrears, sufficient to amortize
the First NLC Mortgage Loan fully by the stated maturity date, over an
original term of not more than thirty years from commencement of
amortization. There are no Convertible Mortgage Loans which contain a
provision allowing the Mortgagor to convert the Mortgage Note from an
adjustable interest rate Mortgage Note to a fixed interest rate Mortgage
Note. No First NLC Mortgage Loan is a simple interest mortgage loan;
(u) Customary Provisions. The Mortgage contains customary and
enforceable provisions such as to render the rights and remedies of the
holder thereof adequate for the realization against the Mortgaged Property
of the benefits of the security provided thereby, including, (i) in the
case of a Mortgage designated as a deed of trust, by trustee's sale, and
(ii) otherwise by judicial foreclosure. There is no homestead or other
exemption available to a Mortgagor which would interfere with the right to
sell the Mortgaged Property at a trustee's sale or the right to foreclose
the Mortgage, subject to applicable federal and state laws and judicial
precedent with respect to bankruptcy and right of redemption or similar
law;
(v) Conformance with Underwriting Guidelines. The First NLC Mortgage
Loan was underwritten in accordance with the Underwriting Guidelines in
effect as of the date of origination of such First NLC Mortgage Loan (a
copy of which is attached as Exhibit I to the First NLC Purchase
Agreement);
(w) Occupancy of the Mortgaged Property. To the best of the Seller's
knowledge, as of the Closing Date the Mortgaged Property is lawfully
occupied under applicable law. All inspections, licenses and certificates
required to be made or issued with respect to all occupied portions of the
Mortgaged Property and, with respect to the use and occupancy of the same,
including but not limited to certificates of occupancy and fire
underwriting certificates, have been made or obtained from the appropriate
authorities;
(x) Mortgaged Property Undamaged; No Condemnation Proceedings. There
is no proceeding pending or, to the Seller's knowledge, threatened for the
total or partial condemnation of the Mortgaged Property. As of the Closing
Date, the Mortgaged Property is undamaged by waste, fire, earthquake or
earth movement, windstorm, flood, tornado or other casualty so as to
affect adversely the value of the Mortgaged Property as security for the
First NLC Mortgage Loan or the use for which the premises were intended
and each Mortgaged Property is inhabitable under applicable state and
local laws;
(y) Prior Servicing. Each First NLC Mortgage Loan has been serviced
in all material respects in strict compliance with Accepted Servicing
Practices and the Seller has reported or caused to be reported, the
Mortgagor credit files to each of the three primary credit repositories
monthly in a timely manner;
(z) Leaseholds. If the First NLC Mortgage Loan is secured by a
long-term residential lease, (1) the lessor under the lease holds a fee
simple interest in the land; (2) the terms of such lease expressly permit
the mortgaging of the leasehold estate, the assignment of the lease
without the lessor's consent and the acquisition by the holder of the
Mortgage of the rights of the lessee upon foreclosure or assignment in
lieu of foreclosure or provide the holder of the Mortgage with
substantially similar protections; (3) the terms of such lease do not (a)
allow the termination thereof upon the lessee's default without the holder
of the Mortgage being entitled to receive written notice of, and
opportunity to cure, such default, (b) allow the termination of the lease
in the event of damage or destruction as long as the Mortgage is in
existence, (c) prohibit the holder of the Mortgage from being insured (or
receiving proceeds of insurance) under the hazard insurance policy or
policies relating to the Mortgaged Property or (d) permit any increase in
rent other than pre-established increases set forth in the lease; (4) the
original term of such lease is not less than 15 years; (5) the term of
such lease does not terminate earlier than five years after the maturity
date of the Mortgage Note; and (6) the Mortgaged Property is located in a
jurisdiction in which the use of leasehold estates in transferring
ownership in residential properties is a widely accepted practice;
(aa) Prepayment Premium. The First NLC Mortgage Loan is subject to a
Prepayment Premium as provided in the related Mortgage Note except as set
forth on the First NLC Mortgage Loan Schedule. With respect to each First
NLC Mortgage Loan that has a Prepayment Premium feature, each such
Prepayment Premium is enforceable and will be enforced by the Seller for
the benefit of the Purchaser, and each Prepayment Premium is permitted
pursuant to federal, state and local law. Each such Prepayment Premium is
in an amount equal to the maximum amount permitted under applicable law
and no such Prepayment Premium may be imposed for a term in excess of five
(5) years with respect to First NLC Mortgage Loans originated prior to
October, 1, 2002. With respect to First NLC Mortgage Loans originated on
or after October 1, 2002, unless indicated otherwise in the First NLC
Mortgage Loan Schedule, no such Prepayment Premium may be imposed for a
term in excess of three (3) years;
(bb) Predatory Lending Regulations. No First NLC Mortgage Loan is a
High Cost Loan. No First NLC Mortgage Loan is a High Cost Loan or Covered
Loan, as applicable (as such terms are defined in the then current
Standard & Poor's LEVELS(R) Glossary). No First NLC Loan originated on or
after October 1, 2002 through March 6, 2003 is governed by the Georgia
Fair Lending Act;
(cc) Single-premium Credit Life Insurance Policy. In connection with
the origination of any First NLC Mortgage Loan, the Mortgagor did not
obtain a prepaid, single-premium credit-life, credit disability, credit
unemployment or credit property insurance policy;
(dd) Qualified Mortgage. The First NLC Mortgage Loan is a "qualified
mortgage" within the meaning of Section 860G(a)(3) of the Code;
(ee) Delivery to the Trustee. With respect to each First NLC
Mortgage Loan, GSMC is in possession of a complete Mortgage File except
for the documents which have been delivered to the Trustee or which have
been submitted for recording and not yet returned;
(ff) Credit Information. As to each consumer report (as defined in
the Fair Credit Reporting Act, Public Law 91-508) or other credit
information furnished by the Seller to the Purchaser, that Seller has full
right and authority and is not precluded by law or contract from
furnishing such information to the Purchaser and the Purchaser is not
precluded by the terms of the Mortgage Loan Documents from furnishing the
same to any subsequent or prospective purchaser of such Mortgage. The
Seller has or has caused the related servicer to, for each First NLC
Mortgage Loan, fully furnish, in accordance with the Fair Credit Reporting
Act and its implementing regulations, accurate and complete information
(e.g., favorable and unfavorable) on its borrower credit files to Equifax,
Experian and Trans Union Credit Information Company (three of the credit
repositories), on a monthly basis; and
(gg) Arbitration. With respect to any First NLC Mortgage Loan
originated on or after August 1, 2004, neither the related Mortgage nor
the related Mortgage Note requires the Mortgagor to submit to arbitration
to resolve any dispute arising out of or relating in any way to the First
NLC Mortgage Loan transaction.
EXHIBIT III
Representations and Warranties Regarding the Accredited Mortgage Loans
(a) Accredited Mortgage Loans as Described. The information set
forth in the Accredited Mortgage Loan Schedule with respect to the
Accredited Mortgage Loans is complete, true and correct;
(b) Payments Current. All payments required to be made up to the
Closing Date for the Accredited Mortgage Loan under the terms of the
Mortgage Note, other than payments not yet 30 days delinquent, have been
made and credited. No payment required under the Accredited Mortgage Loan
is 30 days or more delinquent nor has any payment under the Accredited
Mortgage Loan been 30 days or more delinquent at any time since the
origination of the Accredited Mortgage Loan;
(c) No Outstanding Charges. Except for payment defaults of less than
30 days, there are no defaults in complying with the terms of the
Mortgage, and all taxes, governmental assessments, insurance premiums,
water, sewer and municipal charges, leasehold payments or ground rents
which previously became due and owing have been paid, or an escrow of
funds has been established in an amount sufficient to pay for every such
item which remains unpaid and which has been assessed but is not yet due
and payable. The Seller has not advanced funds, or induced, solicited or
knowingly received any advance of funds by a party other than the
Mortgagor, directly or indirectly, for the payment of any amount required
under the Accredited Mortgage Loan, except for interest accruing from the
date of the Mortgage Note or date of disbursement of the Accredited
Mortgage Loan proceeds, whichever is earlier, to the day which precedes by
one month the Due Date of the first installment of principal and interest;
(d) Original Terms Unmodified. The terms of the Mortgage Note and
Mortgage have not been impaired, waived, altered or modified in any
respect, from the date of origination except by a written instrument which
has been recorded, if necessary to protect the interests of the Purchaser,
and which has been delivered to the Custodian or to such other Person as
the Purchaser shall designate in writing, and the terms of which are
reflected in the Accredited Mortgage Loan Schedule. The substance of any
such waiver, alteration or modification has been approved by the title
insurer, if any, to the extent required by the policy, and its terms are
reflected on the Accredited Mortgage Loan Schedule, if applicable. No
Accredited Mortgage Loan has been modified so as to restructure the
payment obligations or re-age the Accredited Mortgage Loan. No Mortgagor
has been released, in whole or in part, except in connection with an
assumption agreement, approved by the issuer of the title insurer, to the
extent required by the policy, and which assumption agreement is part of
the Custodial File delivered to the Custodian or to such other Person as
the Purchaser shall designate in writing and the terms of which are
reflected in the Accredited Mortgage Loan Schedule;
(e) No Defenses. The Accredited Mortgage Loan is not subject to any
right of rescission, set-off, counterclaim or defense, including without
limitation the defense of usury, nor will the operation of any of the
terms of the Mortgage Note or the Mortgage, or the exercise of any right
thereunder, render either the Mortgage Note or the Mortgage unenforceable,
in whole or in part, or subject to any right of rescission, set-off,
counterclaim or defense, including without limitation the defense of
usury, and no such right of rescission, set-off, counterclaim or defense
has been asserted with respect thereto, and to the best of the Seller's
knowledge, no Mortgagor was a debtor in any state or federal bankruptcy or
insolvency proceeding at, or subsequent to, the time the Accredited
Mortgage Loan was funded;
(f) Hazard Insurance. Pursuant to the terms of the Mortgage, all
buildings or other improvements upon the Mortgaged Property are insured by
a generally acceptable insurer acceptable under the Xxxxxx Xxx Guides
against loss by fire, hazards of extended coverage and such other hazards
as are provided for in the Xxxxxx Mae Guides or by Xxxxxxx Mac, in an
amount which is at least equal to the lesser of (i) the maximum insurable
value of the improvements securing such Mortgage Loan and (ii) the greater
of (a) the outstanding principal balance of the Mortgage Loan and (b) an
amount such that the proceeds thereof shall be sufficient to prevent the
Mortgagor or the loss payee from becoming a co-insurer. If required by the
National Flood Insurance Act of 1968, as amended, each Mortgage Loan is
covered by a flood insurance policy meeting the requirements of the
current guidelines of the Federal Insurance Administration as in effect
which policy conforms to Xxxxxx Mae and Xxxxxxx Mac, with a generally
acceptable insurance carrier acceptable under the Xxxxxx Mae Guides in an
amount representing coverage not less than the lesser of (i) the aggregate
unpaid principal balance of the Mortgage Loan, (ii) maximum amount of
insurance which is available under the National Flood Insurance Act of
1968, as amended (regardless of whether the area in which such Mortgaged
Property is located is participating in such program), and (iii) the full
replacement value of the improvements which are part of such Mortgaged
Property. All individual insurance policies contain a standard mortgagee
clause naming the Seller and its successors and assigns as mortgagee, and
all premiums thereon have been paid and such policies may not be reduced,
terminated or cancelled without 30 days' prior written notice to the
mortgagee. The Mortgage obligates the Mortgagor thereunder to maintain the
hazard insurance policy at the Mortgagor's cost and expense, and on the
Mortgagor's failure to do so, authorizes the holder of the Mortgage to
obtain and maintain such insurance at such Mortgagor's cost and expense,
and to seek reimbursement therefor from the Mortgagor. Where required by
state law or regulation, the Mortgagor has been given an opportunity to
choose the carrier of the required hazard insurance, provided the policy
is not a "master" or "blanket" hazard insurance policy covering a
condominium, or any hazard insurance policy covering the common facilities
of a planned unit development. The hazard insurance policy is the valid
and binding obligation of the insurer, is in full force and effect, and
will be in full force and effect and inure to the benefit of the Purchaser
upon the consummation of the transactions contemplated by this Agreement.
None of the Seller, the Mortgagor or any servicer have engaged in any act
or omission which would impair the coverage of any such policy, the
benefits of the endorsement provided for herein, or the validity and
binding effect of such policy, including, without limitation, no unlawful
fee, commission, kickback or other unlawful compensation or value of any
kind has been or will be received, retained or realized by any attorney,
firm or other person or entity, and no such unlawful items have been
received, retained or realized by the Seller;
(g) Compliance with Applicable Laws. Any and all requirements of any
federal, state or local law including, without limitation, usury,
truth-in-lending, real estate settlement procedures, consumer credit
protection, equal credit opportunity and disclosure laws or unfair and
deceptive practices laws applicable to the Accredited Mortgage Loan
including, without limitation, any provisions relating to Prepayment
Premiums, have been complied with, the consummation of the transactions
contemplated hereby will not involve the violation of any such laws or
regulations. Each Accredited Mortgage Loan at the time it was made
complied in all material respects with applicable local, state, and
federal laws, including, but not limited to, all applicable predatory and
abusive lending laws;
(h) No Satisfaction of Mortgage. The Mortgage has not been
satisfied, canceled, subordinated (except to a senior mortgage in the case
of a Second Lien Mortgage Loan) or rescinded, in whole or in part, and the
Mortgaged Property has not been released from the lien of the Mortgage, in
whole or in part, nor has any instrument been executed that would effect
any such release, cancellation, subordination or rescission. The Seller
has not waived the performance by the Mortgagor of any action, if the
Mortgagor's failure to perform such action would cause the Accredited
Mortgage Loan to be in default, nor has the Seller waived any default
resulting from any action or inaction by the Mortgagor;
(i) Location and Type of Mortgaged Property. The Mortgaged Property
is a fee simple property located in the state identified in the related
Mortgage Loan Schedule except that with respect to real property located
in jurisdictions in which the use of leasehold estates for residential
properties is a widely-accepted practice, the Mortgaged Property may be a
leasehold estate and consists of a single parcel of real property with a
detached single family residence erected thereon, or a two- to four-family
dwelling, or an individual residential condominium unit in a condominium
project, or an individual unit in a planned unit development or a
manufactured home and no residence or dwelling is a mobile home, provided,
however, that any condominium unit or planned unit development shall
conform with the related Underwriting Guidelines. In the case of any
Mortgaged Properties that are manufactured homes (a "Manufactured Home
Mortgage Loan"), (i) such Manufactured Home Mortgage Loan conforms with
the applicable Xxxxxx Xxx or Xxxxxxx Mac requirements regarding mortgage
loans related to manufactured dwellings, (ii) the related manufactured
dwelling is permanently affixed to the land, (iii) the related
manufactured dwelling and the related land are subject to a Mortgage
properly filed in the appropriate public recording office and naming
Seller as mortgagee, (iv) the applicable laws of the jurisdiction in which
the related Mortgaged Property is located will deem the manufactured
dwelling located on such Mortgaged Property to be a part of the real
property on which such dwelling is located, and (v) such Manufactured Home
Mortgage Loan is (x) a qualified mortgage under Section 860G(a)(3) of Code
and (y) secured by manufactured housing treated as a single family
residence under Section 25(e)(10) of the Code. As of the date of
origination, no portion of the Mortgaged Property was used for commercial
purposes, and since the date of origination, no portion of the Mortgaged
Property has been used for commercial purposes; provided, that a Mortgaged
Property which contains a home office shall not be considered as being
used for commercial purposes as long as the Mortgaged Property has not
been altered for commercial purposes and is not storing any chemicals or
raw materials other than those commonly used for homeowner repair,
maintenance and/or household purposes; notwithstanding the forgoing, the
Mortgaged Property is not characterized as mixed-use under which the
Mortgaged Property falls into two or more land use classifications;
(j) Valid First or Second Lien. The Mortgage is a valid, subsisting,
enforceable (subject to bankruptcy, insolvency, and similar laws affecting
the rights of creditors generally and to general principles of equity) and
perfected, first or second lien (as applicable) on the Mortgaged Property,
including all buildings and improvements on the Mortgaged Property and all
installations and mechanical, electrical, plumbing, heating and air
conditioning systems located in or annexed to such buildings, and all
additions, alterations and replacements made at any time with respect to
the foregoing. The lien of the Mortgage is subject only to:
(1) the lien of current real property taxes and assessments
not yet due and payable;
(2) covenants, conditions and restrictions, rights of way,
easements and other matters of the public record as of the date of
recording acceptable to prudent mortgage lending institutions
generally and specifically referred to in the lender's title
insurance policy delivered to the originator of the Accredited
Mortgage Loan and (a) specifically referred to or otherwise
considered in the appraisal made for the originator of the
Accredited Mortgage Loan or (b) which do not adversely affect the
Appraised Value of the Mortgaged Property set forth in such
appraisal;
(3) other matters to which like properties are commonly
subject which do not materially interfere with the benefits of the
security intended to be provided by the Mortgage or the use,
enjoyment, value or marketability of the related Mortgaged Property;
and
(4) with respect to Second Lien Mortgage Loans, the lien of
the first mortgage on the Mortgaged Property.
Any security agreement, chattel mortgage or equivalent document
related to and delivered in connection with the Accredited Mortgage Loan
establishes and creates a valid, subsisting, enforceable (subject to bankruptcy,
insolvency and similar laws affecting the rights of creditors and general
principles of equity) and perfected (A) first lien and first priority security
interest with respect to each first lien mortgage loan, or (B) second lien and
second priority security interest with respect to each Second Lien Mortgage
Loan, in either case, on the property described therein and the Seller has full
right to sell and assign the same to Purchaser;
(k) Validity of Mortgage Documents. The Mortgage Note and the
Mortgage and any other agreement executed and delivered by a Mortgagor in
connection with a Accredited Mortgage Loan are genuine, and each is the
legal, valid and binding obligation of the maker thereof enforceable in
accordance with its terms, except as such enforcement may be limited by
bankruptcy, insolvency, reorganization, receivership, moratorium or other
similar laws relating to or affecting the rights of creditors generally,
and by general equity principles (regardless of whether such enforcement
is considered a proceeding in equity or a law). To the best of the
Seller's knowledge, all parties to the Mortgage Note, the Mortgage and any
other such related agreement had legal capacity to enter into the
Accredited Mortgage Loan and to execute and deliver the Mortgage Note, the
Mortgage and any such agreement, and the Mortgage Note, the Mortgage and
any other such related agreement have been duly and properly executed by
other such related parties;
(l) Full Disbursement of Proceeds. Except to the extent the Mortgage
Loan is subject to completion escrows which have been disclosed to and
acknowledged by the Purchaser and which meet the requirements of the
related Underwriting Guidelines, and as to which a completed Xxxxxx Xxx
form 442 has been delivered to the Purchaser as of the related Closing
Date, the Accredited Mortgage Loan has been closed and the proceeds of the
Accredited Mortgage Loan have been fully disbursed and there is no
requirement for future advances thereunder, and any and all requirements
as to completion of any on-site or off-site improvement and as to
disbursements of any escrow funds therefor have been complied with. All
costs, fees and expenses incurred in making or closing the Accredited
Mortgage Loan and the recording of the Mortgage were paid, and the
Mortgagor is not entitled to any refund of any amounts paid or due under
the Mortgage Note or Mortgage;
(m) Ownership. The Seller is the sole owner and holder of the
Mortgage Loan, the Mortgage Loan has neither been assigned nor pledged,
and the Seller has good and marketable title thereto, and has full right
to transfer and sell the Mortgage Loan and the related servicing rights to
the Purchaser free and clear of any encumbrance, equity, lien, pledge,
chare, claim or security interest and has full right and authority subject
to no interest or participation of, or agreement with, any other party, to
sell and assign each Mortgage Loan and the related servicing rights to the
Purchaser pursuant to the terms of this Agreement;
(n) Doing Business. All parties which have had any interest in the
Accredited Mortgage Loan, whether as mortgagee, assignee, pledgee or
otherwise, are (or, during the period in which they held and disposed of
such interest, were) (1) in compliance with any and all applicable
licensing requirements of the laws of the state wherein the Mortgaged
Property is located, and (2) either (i) organized under the laws of such
state, or (ii) qualified to do business, or exempt from such
qualification, in such state, or (iii) a federal savings and loan
association, a savings bank or a national bank having a principal office
in such state, or (3) not doing business in such state;
(o) LTV. No Accredited Mortgage Loan has a LTV greater than 100%;
(p) Title Insurance. The Accredited Mortgage Loan is covered by an
ALTA lender's title insurance policy, or with respect to any Accredited
Mortgage Loan for which the related Mortgaged Property is located in
California a CLTA lender's title insurance policy, or other generally
acceptable form of policy or insurance acceptable to Xxxxxx Xxx or Xxxxxxx
Mac and each such title insurance policy is issued by a title insurer
acceptable to Xxxxxx Mae or Xxxxxxx Mac and qualified to do business in
the jurisdiction where the Mortgaged Property is located, insuring the
Seller, its successors and assigns, as to the first priority lien (with
respect to first lien Accredited Mortgage Loans) or second priority lien
(with respect to Second Lien Mortgage Loans) of the Mortgage in the
original principal amount of the Accredited Mortgage Loan, subject only to
the exceptions contained in clauses (1), (2), (3) and (4) of paragraph (j)
of this Exhibit III, and in the case of Adjustable Rate Mortgage Loans,
against any loss by reason of the invalidity or unenforceability of the
lien resulting from the provisions of the Mortgage providing for
adjustment to the Mortgage Interest Rate and Monthly Payment. Where
required by state law or regulation, the Mortgagor has been given the
opportunity to choose the carrier of the required mortgage title
insurance. Additionally, such lender's title insurance policy
affirmatively insures ingress and egress, and against encroachments by or
upon the Mortgaged Property or any interest therein. The title policy does
not contain any special exceptions (other than the standard exclusions)
for zoning and uses and has been marked to delete the standard survey
exception or to replace the standard survey exception with a specific
survey reading. The Seller, its successor and assigns, are the sole
insureds of such lender's title insurance policy, and such lender's title
insurance policy is valid and remains in full force and effect and will be
in force and effect upon the consummation of the purchase transactions
contemplated by this Agreement. No claims have been made under such
lender's title insurance policy, and no prior holder of the related
Mortgage, including the Seller, has done, by act or omission, anything
which would impair the coverage of such lender's title insurance policy;
(q) No Defaults. To the best of the Seller's knowledge, other than
payments due but not yet 30 days or more delinquent, there is no default,
breach, violation or event which would permit acceleration existing under
the Mortgage or the Mortgage Note and no event which, with the passage of
time or with notice and the expiration of any grace or cure period, would
constitute a default, breach, violation or event which would permit
acceleration, and neither the Seller nor any of its affiliates nor any of
their respective predecessors, have waived any default, breach, violation
or event which would permit acceleration. With respect to each Second Lien
Mortgage Loan, (i) the prior mortgage is in full force and effect, (ii)
there is no default, breach, violation or event of acceleration existing
under such prior mortgage or the related mortgage note and (iii) as of the
related Closing Date, no event which, with the passage of time or with
notice and the expiration of any grace or cure period, would constitute a
default, breach, violation or event of acceleration thereunder, and either
(A) the prior mortgage contains a provision which allows or (B) the
applicable law or applicable Mortgage requires, the mortgagee under the
Second Lien Mortgage Loan to receive notice of, and affords such mortgagee
an opportunity to cure any default by payment in full or otherwise under
the prior mortgage;
(r) No Mechanics' Liens. Except as insured against by the related
title insurance, there are no mechanics' or similar liens or claims which
have been filed for work, labor or material (and no rights are outstanding
that under law could give rise to such liens) affecting the related
Mortgaged Property which are or may be liens prior to, or equal or
coordinate with, the lien of the related Mortgage; provided, however, that
this warranty shall be deemed not to have been made at the time of the
initial issuance of the Certificates if a title policy affording, in
substance, the same protection afforded by this warranty is furnished to
the Trustee by the Seller;
(s) Location of Improvements; No Encroachments. All improvements
which were considered in determining the Appraised Value of the Mortgaged
Property lay wholly within the boundaries and building restriction lines
of the Mortgaged Property, and no improvements on adjoining properties
encroach upon the Mortgaged Property. To the best of the Seller's
knowledge, no improvement located on or being part of the Mortgaged
Property is in violation of any applicable zoning law or regulation;
(t) Origination; Payment Terms. The Mortgage Loan was originated by
a mortgagee approved by the Secretary of Housing and Urban Development
pursuant to Sections 203 and 211 of the National Housing Act, a savings
and loan association, a savings bank, a commercial bank, credit union,
insurance company or other similar institution which is supervised and
examined by a federal or state authority. No Mortgage Loan contains terms
or provisions which would result in negative amortization. Principal
payments on the Mortgage Loan commenced no more than sixty days after
funds were disbursed in connection with the Mortgage Loan. The Mortgage
Interest Rate as well as the Lifetime Rate Cap and the Periodic Cap for an
Adjustable Rate Mortgage Loan are as set forth on the related Mortgage
Loan Schedule. The Mortgage Note is payable in equal monthly installments
of principal and interest, except for those Mortgage Loans identified on
the related Mortgage Loan Schedule subject to a balloon payment, which
installments of interest, with respect to Adjustable Rate Mortgage Loans,
are subject to change due to the adjustments to the Mortgage Interest Rate
on each Interest Rate Adjustment Date, with interest calculated and
payable in arrears, sufficient to amortize the Mortgage Loan fully by the
stated maturity date, over an original term of not more than thirty years
from commencement of amortization. Unless otherwise specified on related
Mortgage Loan Schedule, the Mortgage Loan is payable on the first day of
each month. There are no Convertible Mortgage Loans which contain a
provision allowing the Mortgagor to convert the Mortgage Note from an
adjustable interest rate Mortgage Note to a fixed interest rate Mortgage
Note;;
(u) Customary Provisions. The Mortgage contains customary and
enforceable (subject to bankruptcy, insolvency, and similar laws affecting
the rights of creditors generally and to general principles of equity)
provisions such as to render the rights and remedies of the holder thereof
adequate for the realization against the Mortgaged Property of the
benefits of the security provided thereby, including, (i) in the case of a
Mortgage designated as a deed of trust, by trustee's sale, and (ii)
otherwise by judicial foreclosure. There is no homestead or other
exemption available to a Mortgagor which would interfere with the right to
sell the Mortgaged Property at a trustee's sale or the right to foreclose
the Mortgage, subject to applicable federal and state laws and judicial
precedent with respect to bankruptcy and right of redemption or similar
law;
(v) Conformance with Agency and Underwriting Guidelines. The
Mortgage Loan was underwritten in accordance with the related Underwriting
Guidelines. The Mortgage Note and Mortgage are on forms generally
acceptable in the secondary market and the Seller has not made any
representations to a Mortgagor that are inconsistent with the mortgage
instruments used;
(w) Occupancy of the Mortgaged Property. To the best of the Seller's
knowledge, the Mortgaged Property is not unlawfully occupied under
applicable law. All inspections, licenses and certificates required to be
made or issued with respect to all occupied portions of the Mortgaged
Property and, with respect to the use and occupancy of the same, including
but not limited to certificates of occupancy, have been made or obtained
from the appropriate authorities;
(x) Mortgaged Property Undamaged; No Condemnation Proceedings. There
is no proceeding pending or threatened for the total or partial
condemnation of the Mortgaged Property. The Mortgaged Property is
undamaged by waste, fire, earthquake or earth movement, windstorm, flood,
tornado or other casualty so as to affect adversely the value of the
Mortgaged Property as security for the Mortgage Loan or the use for which
the premises were intended and each Mortgaged Property is in good repair;
(y) Prior Servicing. Each Mortgage Loan has been serviced in all
material respects in strict compliance with Accepted Servicing Practices
and the related servicer has reported the Mortgagor credit files monthly
to each of the three credit repositories in a timely manner on a monthly
basis;
(z) Leaseholds. If an Accredited Mortgage Loan is secured by a
long-term residential lease, (1) the lessor under the lease holds a fee
simple interest in the land; (2) the terms of such lease expressly permit
the mortgaging of the leasehold estate, and the acquisition by the holder
of the Mortgage of the rights of the lessee upon foreclosure or assignment
in lieu of foreclosure or provide the holder of the Mortgage with
substantially similar protections; (3) the terms of such lease do not (a)
allow the termination thereof upon the lessee's default without the holder
of the Mortgage being entitled to receive written notice of, and
opportunity to cure, such default, (b) allow the termination of the lease
in the event of damage or destruction as long as the Mortgage is in
existence, (c) prohibit the holder of the Mortgage from being insured (or
receiving proceeds of insurance) under the hazard insurance policy or
policies relating to the Mortgaged Property or (d) permit any increase in
rent other than pre-established increases set forth in the lease; (4) the
original term of such lease is not less than 15 years; (5) the term of
such lease does not terminate earlier than five years after the maturity
date of the Mortgage Note; and (6) the Mortgaged Property is located in a
jurisdiction in which the use of leasehold estates in transferring
ownership in residential properties is a widely accepted practice;
(aa) Prepayment Premium. Each Mortgage Loan is subject to a
Prepayment Premium unless otherwise set forth on the related Mortgage Loan
Schedule hereof, enforceable under the terms of the related Mortgage Note
and originated in compliance with all applicable federal, state, and local
laws. No Mortgage Loan has a Prepayment Premium period in excess of five
years. With respect to each Mortgage Loan that contains a Prepayment
Premium: (i) a mortgage loan without a Prepayment Premium was available to
the Mortgagor at an interest rate and/or fee structure higher than that of
the Mortgage Loan, (ii) prior to the Mortgage Loan's funding, the
Mortgagor had the option of obtaining a mortgage loan that did not require
payment of such a premium, and (iii) the Prepayment Premium was disclosed
to the Mortgagor in the Mortgage Loan documents pursuant to applicable
state and federal law;
(bb) Predatory Lending Regulations. None of the Mortgage Loans are
(i) covered by the Home Ownership and Equity Protection Act of 1994 or
(ii) in violation of, or classified as "high cost", "threshold," "covered"
or "predatory" loans under, any other applicable state, federal or local
law.;
(cc) Single-premium Credit Life Insurance Policy. In connection with
the origination of any Mortgage Loan, no proceeds from any Mortgage Loan
were used to finance a single-premium credit life insurance policy. No
Mortgagor was required to purchase any credit life, disability, accident
or health insurance product as a condition of obtaining the extension of
credit. No Mortgagor obtained a prepaid single-premium credit life,
disability, accident or health insurance policy in connection with the
origination of the Mortgage Loan;
(dd) Qualified Mortgage. The Accredited Mortgage Loan is a
"qualified mortgage" within the meaning of Section 860G(a)(3) of the Code;
(ee) Delivery to the Trustee. With respect to each Accredited
Mortgage Loan, GSMC is in possession of a complete Mortgage File except
for the documents which have been delivered to the Trustee or which have
been submitted for recording and not yet returned; and
(ff) Credit Information. As to each consumer report (as defined in
the Fair Credit Reporting Act, Public Law 91-508) or other credit
information furnished by the Seller to the Purchaser, that Seller has full
right and authority and is not precluded by law or contract from
furnishing such information to the Purchaser and the Purchaser is not
precluded by the terms of the Mortgage Loan Documents from furnishing the
same to any subsequent or prospective purchaser of such Mortgage. The
Seller has or has caused the related servicer to, for each Accredited
Mortgage Loan, fully furnish, in accordance with the Fair Credit Reporting
Act and its implementing regulations, accurate and complete information
(e.g., favorable and unfavorable) on its borrower credit files to Equifax,
Experian and Trans Union Credit Information Company (three of the credit
repositories), on a monthly basis.
EXHIBIT IV
Representations and Warranties Regarding the Conduit Mortgage Loans
(a) Conduit Mortgage Loans as Described. The information set forth
in the Conduit Mortgage Loan Schedule with respect to the Conduit Mortgage
Loans is complete, true and accurate;
(b) Criteria for Eligible Loans. Unless otherwise agreed upon, the
Mortgage Loan has been generally underwritten in accordance with, and
meets the parameters of, the underwriting requirements set forth in the
Underwriting Guide or the Seller's underwriting guidelines. No Conduit
Mortgage Loan is (i) covered by the provisions of the Homeownership and
Equity Protection Act of 1994 or (ii) in violation of, or classified as a
"high cost", "threshold", "covered" or "predatory" loan under, any other
applicable state, federal or local law (or a similarly classified loan
using different terminology under a law imposing heightened regulatory
scrutiny or additional legal liability for residential mortgage loans
having high interest rates, points and/or fees). No Conduit Mortgage Loan
is subject to any rights of rescission, counterclaims or defenses;
(c) Compliance with Applicable Laws: Each Mortgage Loan has been
originated in compliance with all applicable local, state and federal laws
and regulations including, without limitation, usury and predatory lending
laws;
(d) Origination/Doing Business: The Conduit Mortgage Loan was
originated by a mortgagee approved by the Secretary of Housing and Urban
Development pursuant to Sections 203 and 211 of the National Housing Act,
a savings and loan association, a savings bank, a commercial bank, credit
union, insurance company or other similar institution which is supervised
and examined by a federal or state authority. All parties who have had any
interest in the Conduit Mortgage Loan, whether as a mortgagee, assignee,
pledgee or otherwise are (or during the period in which they held and
disposed of such interest, were) (a) in compliance with any and all
applicable licensing requirements of the laws of the state where the
Mortgaged Property is located, and (b) either (i) organized under the laws
of such state, or (ii) qualified to do business in such state, or (iii) a
federal savings and loan association, a savings bank or a national bank
having a principal office in such state, or (c) not doing business in such
state;
(e) Validity of Loan Documents: The Mortgage Note and the Mortgage
and any other agreement executed by a Mortgagor in connection with a
Mortgage Loan are genuine and each is the legal, valid, and binding
obligation of its maker. Each is enforceable according with its terms
(including without limitation, any provisions relating to prepayment
charges or penalties), except as limited by bankruptcy, insolvency or
other similar laws generally affecting the enforcement of creditor's
rights. To the best of the Seller's knowledge, all parties associated with
the Mortgage Note, the Mortgage and any related document had legal
capacity to enter into the Mortgage Loan and to execute and deliver said
documents and said documents have been duly and properly executed by all
such related parties;
(f) No Defenses: The Mortgage Loan is not subject to any right of
rescission, set-off, counterclaim or defense, including without limitation
the defense of usury. The operation of any of the terms of the Mortgage
Note or the Mortgage, or the exercise of any right thereunder, will not
render the Mortgage Note or the Mortgage unenforceable, in whole or in
part or subject to any right of rescission, set-off, counterclaim or
defense, including without limitation, the defense of usury. In addition,
no such right of rescission, set-off, counterclaim or defense has been
asserted with respect to the Mortgage Note or the Mortgage. To the best of
the Seller's knowledge, no Mortgagor was a debtor in any local, state or
federal bankruptcy or insolvency proceeding at the time the related
Mortgage Loan was originated or as of the related origination date;
(g) No Defaults: Other than payments due but not yet 30 days or more
delinquent, to the best of the Seller's knowledge, there is no default,
breach, violation or event which would permit acceleration existing under
the Mortgage or the Mortgage Note and no event which, with the passage of
time or with notice and the expiration of any grace or cure period, would
constitute a default, breach, violation or event which would permit
acceleration. No such default, breach, violation or event which would
permit acceleration has been waived by the Seller or by any other entity
involved in originating the Conduit Mortgage Loan. With respect to each
second lien loan, (i) the prior mortgage is in full force and effect, (ii)
there is no default, breach, violation or event which would permit
acceleration existing under such prior mortgage or the related mortgage
note, (iii) there is no event which, with the passage of time or with
notice and the expiration of any grace or cure period, would constitute a
default, breach, violation or event which would permit acceleration
thereunder, and either (A) the prior mortgage contains a provision which
allows or (B) applicable law requires, the mortgagee under the second lien
loan to receive notice of, and affords such mortgagee an opportunity to
cure any default by payment in full or otherwise under the prior mortgage;
(h) Original Terms Unmodified: The terms of the Mortgage Note and
the Mortgage have not been impaired, waived, altered or modified in any
respect from the date of origination, except by written instrument. Any
such instrument was recorded in the applicable public recording office if
necessary to protect the interests of the Purchaser in the related Conduit
Mortgage Loan. In addition, the changes to the terms have been delivered
to the Purchaser or its designee and reflected on the Conduit Loan
Schedule. No Conduit Mortgage Loan has been modified so as to restructure
the payment obligations or extend the maturity date of the Conduit
Mortgage Loan. The substance of any such waiver, alteration or
modification has been approved by the title insurer to the extent required
by the title policy. No Mortgagor has been released, in whole or in part,
except in connection with an assumption agreement, approved by the issuer
of the title insurance, to the extent required by the policy, and which
assumption agreement is part of the Mortgage File delivered to the
Purchaser or its designee and the terms of which are reflected in the
Conduit Loan Schedule;
(i) No Satisfaction of Mortgage: The Mortgage has not been
satisfied, cancelled, subordinated or rescinded, in whole or in part and
the Mortgaged Property has not been released from the lien of the
Mortgage, in whole or in part, nor has any instrument been executed that
would effect any such satisfaction, cancellation, subordination, or
rescission. The Seller has not waived the performance by the Mortgagor of
any action, if the Mortgagor's failure to perform such action would cause
the Mortgage Loan to be in default, nor has the Seller waived any default
resulting from any action or inaction by the Mortgagor;
(j) Customary Provisions: The Mortgage and related Mortgage Note
contain customary and enforceable provisions such as to render the rights
and remedies of the holder thereof adequate for the realization against
the Mortgaged Property of the benefits of the security provided thereby,
including: by trustee's sale, in the case of a Mortgage designated as a
deed of trust; and by judicial foreclosure. There are no homestead or
other exemptions or other rights or interests available to the Mortgagor
that would interfere with the right to sell the Mortgaged Property at a
trustee's sale or the right to foreclose the Mortgage, subject to
applicable federal, state and local laws and judicial precedent with
respect to bankruptcy and right of redemption or similar law;
(k) Full Disbursement of Loan Proceeds: Each Mortgage Loan has been
closed and the proceeds of the Mortgage Loan have been fully disbursed.
There is no obligation for the Mortgagee to advance additional funds and
any and all requirements to complete any on-site or off-site improvement
have been complied with as well as any disbursements of escrow funds;
(l) Ownership: The Seller is the sole owner of record and holder of
the Mortgage Loan and the indebtedness evidenced by each Mortgage Note.
The Mortgage Loan is not assigned or pledged other than for normal
warehouse arrangements or other warehouse arrangements previously
disclosed to the Purchaser, and the Seller has good, indefeasible and
marketable title thereto, and has full right to transfer and sell the
Mortgage Loan to the Purchaser free and clear of any encumbrance, equity,
participation interest, lien, pledge, charge, claim or security interest,
and has full right and authority subject to no interest or participation
of, or agreement with, any other party, to sell and assign each Mortgage
Loan pursuant to the underlying purchase documents, as applicable;
(m) Improvements: All the improvements that were considered in
determining the appraised value of the Mortgaged Property lie wholly
within its boundaries and the building restriction lines of the Mortgaged
Property. Otherwise, the title insurance policy insures against loss or
damage by reason of any violation, variation, encroachment or adverse
circumstance that either is disclosed or would have been disclosed by an
accurate survey. No improvements to adjoining properties encroach upon the
Mortgaged Property in any respect so as to affect the value or
marketability of the Mortgaged Property. No improvement located on, or
being part of, the Mortgaged Property is in violation of any applicable
zoning law or regulation;
(n) Proper Servicing: The Conduit Mortgage Loan has been serviced by
the Seller (or a servicer or subservicer on its behalf) and any
predecessor servicer in accordance with Accepted Servicing Practices,
applicable laws and regulations and have been in all respects legal and
proper and prudent in the mortgage origination and servicing business;
(o) All Payments Made: Other than with respect to payments not yet
30 days delinquent, no Conduit Mortgage Loan is 30 or more days delinquent
on the Closing Date, nor has any Conduit Mortgage Loan been delinquent
since its origination date. The Seller has not advanced funds, or induced,
solicited or knowingly received any advance of funds, directly or
indirectly, from a party other than the owner of the related Mortgaged
Property for the payment of any amount required by the Mortgage Note or
Mortgage, except for interest accruing from the date of the Mortgage Note
or date of disbursement of the Conduit Mortgage Loan proceeds, whichever
is earlier, to the date which precedes by one month the due date of the
first installment of principal and interest;
(p) Title Insurance Policy: Each Conduit Mortgage Loan is covered by
an ALTA lender's title insurance policy, or with respect to any Conduit
Mortgage Loan for which the related Mortgaged Property is located in
California, a CLTA lender's title insurance policy or other generally
acceptable form of policy or insurance acceptable to Xxxxxx Xxx or Xxxxxxx
Mac. The title insurance policy:
o is issued by a title insurer who is qualified to do
business in the jurisdiction where the Mortgaged
Property is located;
o insures the Seller, its successors and assigns, as to
the first or second priority lien of the Mortgage in the
original principal amount of the Mortgage Loan;
o insures against any loss by reason of the invalidity or
unenforceability of the lien resulting from the
provisions of the Mortgage providing for adjustment in
the interest rate and monthly payment for any adjustable
rate Mortgage Loan;
o affirmatively insures ingress and egress to and from the
Mortgaged Property;
o insures against encroachments by or upon the Mortgaged
Property or any interest therein;
o names the Seller, its successors and assigns, as the
sole insured of the title insurance policy;
o is valid and remains in full force and effect; and
o does not contain any special exceptions (other than
standard exclusions) for zoning and uses and has been
marked to delete the standard survey exceptions or to
replace the standard exceptions with a specific survey
reading;
In addition, no claims are pending under such lender's title insurance
policy, and no prior holder of the related Mortgage, including the Seller,
has done, by act or omission, anything that would impair the coverage of
such policy;
(q) Fire, Hazard and Flood Insurance: All buildings and other
improvements on the Mortgaged Property are insured. The buildings and
other improvements are insured against loss by fire, hazards of extended
coverage and other hazards. If the Mortgaged Property is in an area
identified on a Flood Hazard Map or Flood Insurance Rate Map issued by the
Federal Emergency Management Agency as having special flood hazards, the
property must have a flood insurance policy in effect. The flood insurance
policy meets the requirements of the current guidelines of the Federal
Insurance Administration. All such insurance policies contain a standard
Mortgagee clause naming the Seller, its successors and assigns as
Mortgagee and all premiums due have been paid. Each Mortgage obligates the
Mortgagor to maintain all such insurance at the Mortgagor's cost and
expense. If the Mortgagor fails to maintain such insurance, then the
holder of the Mortgage is authorized to obtain such insurance and to seek
reimbursement from the Mortgagor;
(r) Mortgaged Property Undamaged; No Condemnation Proceedings: There
is no proceeding pending or, to the Seller's knowledge, threatened for the
total or partial condemnation of the Mortgaged Property. The Mortgaged
Property is undamaged by waste, fire, earthquake or earth movement,
windstorm, flood, tornado or other casualty so as to affect adversely the
value of the Mortgaged Property as security for the Mortgage Loan or the
use for which the premises were intended;
(s) No Mechanics' Liens: There are no mechanics' or similar liens or
claims which have been filed for work, labor or material (and no rights
are outstanding that under law could give rise to such liens) affecting
the related Mortgaged Property which are or may be liens prior to, or
equal or coordinate with, the lien of the related Mortgage; provided,
however, that this warranty shall be deemed not to have been made at the
time of the initial issuance of the Certificates if a title policy
affording, in substance, the same protection afforded by this warranty is
furnished to the Trustee by the Seller;
(t) Single-premium Credit Life Insurance: In connection with the
origination of any Mortgage Loan, no proceeds from any Mortgage Loan were
used to finance a single-premium credit life insurance policy;
(u) Valid First and Second Lien: Each Mortgage is a valid,
enforceable and perfected first lien, with respect to first lien loans, or
second lien, with respect to second lien Conduit Mortgage Loans, on real
estate constituting the Mortgaged Property, including all buildings and
improvements on the Mortgaged Property and all installations and
mechanical, electrical, plumbing, heating and air conditioning systems
located in or annexed to such buildings, and all additions, alterations
and replacements made at any time, with respect to the foregoing. The lien
of the Mortgage is subject only to: with respect to second lien loans, the
lien of the first mortgage on the Mortgaged Property; the lien of current
real estate property taxes and assessments not yet due and payable;
covenants, conditions and restrictions, rights of way, easements and other
matters of the public record as of the date of recording acceptable to
prudent mortgage lending institutions generally and specifically referred
to in the lender's title insurance policy delivered to the originator of
the Mortgage Loan and (a) specifically referred to or otherwise considered
in the appraisal made for the originator of the Conduit Mortgage Loan or
(b) which do not adversely affect the appraised value of the Mortgaged
Property set forth in such appraisal; and other matters to which like
properties are commonly subject which do not materially interfere with the
benefits of the security intended to be provided by the Mortgage or the
use, enjoyment, value or marketability of the related Mortgaged Property.
Any security agreement, chattel mortgage or equivalent document related to
and delivered in connection with the Conduit Mortgage Loan establishes and
creates a valid, subsisting, enforceable and perfected (A) first lien and
first priority security interest with respect to each first lien loan, or
(B) second lien and second priority security interest with respect to each
second lien loan, in either case, on the property described therein and
Seller has full right to sell and assign the same to the Seller;
(v) No Delinquent Amounts: There are no delinquent amounts that
affect the Mortgaged Property including, but not limited to: real estate
property taxes; ground rents; water charges; sewer and municipal charges;
insurance premiums; leasehold payments; and governmental assessments;
(w) Payment Terms: Principal payments on each Conduit Mortgage Loan
commenced no more than sixty days after funds were disbursed in connection
with such Conduit Mortgage Loan. The Mortgage Interest Rate as well as,
with respect to Adjustable Rate Mortgage Loan, the lifetime rate cap and
the periodic cap are as set forth on the Conduit Mortgage Loan Schedule.
Except during the interest only period for any Interest Only Mortgage Loan
and with respect to any balloon Conduit Mortgage Loan, the Mortgage Note
is payable in equal monthly installments of principal and interest, which
installments of interest, with respect to adjustable-rate loans, are
subject to change due to the adjustments to the Mortgage Interest Rate on
each adjustment date, as set forth in the related Mortgage Note, with
interest calculated and payable in arrears, sufficient to fully amortize
the Conduit Mortgage Loan by the stated maturity date, over an original
term of not more than thirty years from commencement of amortization. No
Conduit Mortgage Loan contains a provision allowing the Mortgagor to
convert the mortgage interest rate from an adjustable interest rate to a
fixed interest rate. No Conduit Mortgage Loan contains terms or provisions
which would result in negative amortization;
(x) Prepayment Premiums: Except as set forth in the Conduit Mortgage
Loan Schedule, each Mortgage Loan is subject to a Prepayment Premium
except as set forth on the Conduit Mortgage Loan Schedule. With respect to
each Conduit Mortgage Loan that has a Prepayment Premium feature, each
such Prepayment Premium is enforceable and will be enforced by the Seller
for the benefit of the Purchaser, and each Prepayment Premium is permitted
pursuant to federal, state and local law. Each such Prepayment Premium is
in an amount equal to or less than the maximum amount permitted under
applicable law; however, no such Prepayment Premium may be imposed for a
term in excess of three (3) years (or five years with respect to Loans
originated prior to October 1, 2002);
(y) Location and Type of Mortgaged Property: The Mortgaged Property
is located in the state identified in the Conduit Mortgage Loan Schedule
and consists of real property with a detached single family residence
erected thereon, or a two- to four-family dwelling, or an individual
condominium unit in a condominium project, or an individual unit in a
planned unit development;
(z) Occupancy of Mortgaged Property: To the best of the Seller's
knowledge, the Mortgaged Property is lawfully occupied under applicable
law. All inspections, licenses and certificates required to be made or
issued with respect to all occupied portions of the Mortgaged Property
and, with respect to the use and occupancy of the same, including but not
limited to certificates of occupancy and fire underwriting certificates,
have been made or obtained from the appropriate authorities;
(aa) Leaseholds: If the Conduit Mortgage Loan is secured by a
long-term residential lease, (1) the lessor under the lease holds a fee
simple interest in the land; (2) the terms of such lease expressly permit
the mortgaging of the leasehold estate, the assignment of the lease
without the lessor's consent and the acquisition by the holder of the
Mortgage of the rights of the lessee upon foreclosure or assignment in
lieu of foreclosure or provide the holder of the Mortgage with
substantially similar protections; (3) the terms of such lease do not (a)
allow the termination thereof upon the lessee's default without the holder
of the Mortgage being entitled to receive written notice of, and
opportunity to cure, such default, (b) allow the termination of the lease
in the event of damage or destruction as long as the Mortgage is in
existence, (c) prohibit the holder of the Mortgage from being insured (or
receiving proceeds of insurance) under the hazard insurance policy or
policies relating to the Mortgaged Property or (d) permit any increase in
rent other than pre-established increases set forth in the lease; (4) the
original term of such lease is not less than fifteen (15) years; (5) the
term of such lease to extend at least five (5) years beyond the term of
the Mortgage unless such lease contains a provision for future vesting of
land to the Mortgagor or homeowner's association after the maturity date
of the Mortgage Note; and (6) the Mortgaged Property is located in a
jurisdiction in which the use of leasehold estates in transferring
ownership in residential properties is a widely accepted practice;
(bb) Credit Information: As to each consumer report (as defined in
the Fair Credit Reporting Act, Public Law 91-508) or other credit
information furnished by the Seller to the Purchaser, the Seller has full
right and authority and is not precluded by law or contract from
furnishing such information to the Purchaser and the Purchaser is not
precluded by the terms of the Mortgage Loan Documents from furnishing the
same to any subsequent or prospective purchaser of such Mortgage. The
Seller has in its capacity as servicer, for each Mortgage Loan, fully
furnished, in accordance with the Fair Credit Reporting Act and its
implementing regulations, accurate and complete information (i.e.,
favorable and unfavorable) on its borrower credit files to Equifax,
Experian Credit Information Services, Inc. and Trans Union Credit
Information Company (three of the credit repositories), on a monthly
basis;
(cc) Predatory Lending Regulations: None of the Mortgage Loans are
classified as (i) "high cost loans" under the Home Ownership and Equity
Protection Act of 1994 or (ii) in violation of, or classified as "high
cost", "threshold," "predatory" or "covered" loans under, any other
applicable state, federal or local law (or a similarly classified loan
using different terminology under a law imposing heightened regulatory
scrutiny or additional legal liability for residential mortgage loans
having high interest rates, points and/or fees). No Conduit Mortgage Loan
originated on or after October 1, 2002 through March 6, 2003 is governed
by the Georgia Fair Lending Act;
(dd) Arbitration: With respect to any Conduit Mortgage Loan
originated after August 1, 2004, no Mortgagor agreed to submit to
arbitration to resolve any dispute arising out of or relating in any way
to the Conduit Mortgage Loan transaction;
(ee) LTV. No Mortgage Loan has a LTV greater than 100%;
(ff) Qualified Mortgage. The Conduit Mortgage Loan is a "qualified
mortgage" within the meaning of Section 860G(a)(3) of the Code; and
(gg) Delivery to the Custodian. With respect to each Conduit
Mortgage Loan, GSMC is in possession of a complete Mortgage File except
for the documents which have been delivered to the Custodian or which have
been submitted for recording and not yet returned;
EXHIBIT V
Exceptions to Representations and Warranties Regarding the Mortgage Loans
--------------------------------------------------------------------------------
Exhibit Representation Exceptions
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II (b) Approximately 2.04% of the First NLC Loans were one
Monthly Payment or more delinquient.
IV (b) Approximately 1.50% of the Conduit Mortgage Loans
were one Monthly Payment or more delinquient.
II (e) The Mortgagors for approximately 0.14% of the First
NLC Mortgage Loans were debtors in a bankruptcy
proceeding at the time such First NLC Mortgage Loans
were originated.
SCHEDULE I
Acoustic Mortgage Loan Schedule
(Delivered to the Trustee on Closing Date)
SCHEDULE II
First NLC Mortgage Loan Schedule
(Delivered to the Trustee on Closing Date)
SCHEDULE III
Accredited Mortgage Loan Schedule
(Delivered to the Trustee on Closing Date)
SCHEDULE IV
Conduit Mortgage Loan Schedule
(Delivered to the Trustee on Closing Date)
