Exhibit 99.5
EXECUTION COPY
---------------------------------------------------------------------------------------------------------------------
Date: October 31, 2006
To: Xxxxxx Xxxxxxx Mortgage Loan Trust 2006-16AX From: Xxxxxx Xxxxxxx Capital Services Inc.
Attn: Xxxxx Fargo Bank, National Association Contact: Xxxxxx Xxxxx
0000 Xxx Xxxxxxxxx Xxxx
Xxxxxxxx, XX 00000
Attention: Client Manager, MSM 0000-00XX
Fax: (000) 000-0000 Fax: (000) 000-0000
Tel: (000) 000-0000 Tel: (000) 000-0000
REFERENCE NUMBER: FRXQ5
----------------------------------------------------------------------------------------------------------------------
The purpose of this letter agreement (this "Confirmation") is to confirm the
terms and conditions of the Swap Transaction entered into on the Trade Date
specified below (the "Transaction") between Xxxxxx Xxxxxxx Capital Services
Inc. ("Party A") and Xxxxx Fargo Bank, National Association, solely in its
capacity as securities administrator (the "Securities Administrator") on
behalf of the Xxxxxx Xxxxxxx Mortgage Loan Trust 2006-16AX ("Party B")
pursuant to the Pooling and Servicing Agreement (the "PSA"), dated as of
October 1, 2006, among Xxxxxx Xxxxxxx Capital I Inc. (the "Depositor"), the
Securities Administrator as master servicer and securities administrator and
LaSalle Bank National Association as trustee (the "Trustee").
The definitions and provisions contained in the 2000 ISDA Definitions (the
"Definitions"), as published by the International Swaps and Derivatives
Association, Inc., are incorporated into this Confirmation. In the event of
any inconsistency between the Definitions and this Confirmation, this
Confirmation will govern. Terms capitalized but not defined in this
Confirmation (including the Definitions) have the meanings attributed to them
in the PSA.
This Confirmation constitutes a "Confirmation" as referred to in, and
supplements, forms part of and is subject to, the ISDA Master Agreement dated
as of October 31, 2006, as amended and supplemented from time to time (the
"Agreement"), between Party A and Party B. All provisions contained in the
Agreement govern this Confirmation except as expressly modified below.
1. The terms of the particular Transaction to which this Confirmation relates are as follows:
Notional Amount:................................. With respect to any Calculation Period, the lesser of
(a) the amount set forth for such Calculation Period
in Schedule I attached hereto and (b) the aggregate
Class Principal Balance of the Aggregate Group I
Certificates immediately prior to the related
Distribution Date (as such terms are defined in the
PSA).
Trade Date:...................................... October 25, 2006
Effective Date:.................................. October 31, 2006
Termination Date:................................ October 25, 2011, subject to adjustment in accordance
with the Business Day Convention
Fixed Amounts:
Fixed Rate Payer:....................... Party B
1
Fixed Rate Payer Payment Dates:......... The 25th calendar day of each month during the Term of
this Transaction, commencing November 25, 2006 and ending on the
Termination Date, subject to adjustment in accordance with
the Business Day Convention
Fixed Rate Payer Period End Dates:...... The 25th calendar day of each month during the Term of
this Transaction, commencing November 25, 2006 and
ending on October 25, 2011, subject to No Adjustment.
Fixed Rate:............................. 5.15% per annum
Fixed Amount:........................... To be determined in accordance with the following
formula:
10 * Fixed Rate * Notional Amount * Fixed Rate Day
Count Fraction.
Fixed Rate Day Count Fraction:.......... 30/360
Floating Amounts:
Floating Rate Payer:.................... Party A
Floating Rate Payer Payment Dates:...... Early Payment shall be applicable. For each
Calculation Period, the Floating Rate Payer Payment
Date shall be the first Business Day prior to the
related Floating Rate Payer Period End Date.
Floating Rate Payer Period End Dates:... The 25th calendar day of each month during the Term of
this Transaction, commencing November 25, 2006 and
ending on the Termination Date, subject to adjustment
in accordance with the Business Day Convention.
Floating Rate Option:................... USD-LIBOR-BBA
Floating Amount:........................ To be determined in accordance with the following
formula:
10 * Floating Rate * Notional Amount *Floating Rate
Day Count Fraction.
Designated Maturity:.................... One month
Floating Rate Day Count Fraction:....... Actual/360
Reset Dates:............................ The first day of each Calculation Period.
Compounding:............................ Inapplicable
Business Days:.......................... New York
2
Business Day Convention:................ Following
Amendment to Section 2(c) of the Agreement: Notwithstanding anything to the contrary in Section
2(c) of the Agreement, amounts that are payable
with respect to Calculation Periods which end in
the same calendar month (prior to any adjustment of
period end dates) shall be netted, as provided in
Section 2(c) of the Agreement, even if such amounts
are not due on the same payment date. For
avoidance of doubt any payments pursuant to Section
6(e) of the Agreement shall not be subject to
netting.
2. Account Details and Settlement Information:
Payments to Party A:
Citibank, New York
ABA No.: 021 000 089
Account No.: 4072-4601
Account Name: Xxxxxx Xxxxxxx Capital Services Inc.
Payments to Party B:
Xxxxx Fargo Bank, National Association
ABA No. 000-000-000
Account Name: Corporate Trust Clearing
Account No. 3970771416 for further credit to 50955101,
MSM 2006-16AX
Ref: MSM 2006-16AX
3. Fiduciary Capacity. It is expressly understood and agreed by the parties
hereto that (i) this Confirmation is executed and delivered by Xxxxx
Fargo Bank, National Association, not in its individual capacity but
solely as Securities Administrator on behalf of the Trustee under the
PSA in the exercise of the powers and authority conferred to and vested
in it thereunder, (ii) each of the representations, undertakings and
agreements herein made on behalf of the trust created under the PSA is
made and intended not as personal representation, undertaking or
agreement of the Securities Administrator, but is made and intended for
the purpose of binding only such trust and (iii) under no circumstances
shall Xxxxx Fargo Bank, National Association in its individual capacity
be personally liable for the payment of any indebtedness or expenses or
be personally liable for the breach or failure of any obligation,
representation, warranty or covenant made or undertaken under this
Confirmation.
4
We are very pleased to have entered into this Transaction with you and we look
forward to completing other transactions with you in the near future.
Very truly yours,
XXXXXX XXXXXXX CAPITAL SERVICES INC.
By: /s/ Xxxxx X. Xxxxx
---------------------------------------
Name:Xxxxx X. Xxxxx
Title:Vice President
Party B, acting through its duly authorized signatory, xxxxxx agrees to,
accepts and confirms the terms of the foregoing as of the Trade Date.
XXXXX FARGO BANK, NATIONAL ASSOCIATION,
acting not in its individual capacity
but solely as Securities Administrator on
behalf of XXXXXX XXXXXXX MORTGAGE LOAN
TRUST 2006-16AX
By: /s/ Xxxxxxxx Xxxxx
---------------------------------------
Name:Xxxxxxxx Xxxxx
Title:Vice President
4
SCHEDULE I
-----------------------------------------------------------------------------------------------------------
Line Calculation Period NotionalAmount ($) Multiplier
------- -------------------------------------- ----------------------- -------------
1 10/25/2006 11/25/2006 71,042,170.00 10
2 11/25/2006 12/25/2006 68,939,600.75 10
3 12/25/2006 1/25/2007 66,898,686.48 10
4 1/25/2007 2/25/2007 64,917,660.30 10
5 2/25/2007 3/25/2007 62,994,765.60 10
6 3/25/2007 4/25/2007 61,128,297.28 10
7 4/25/2007 5/25/2007 59,309,519.37 10
8 5/25/2007 6/25/2007 57,551,200.54 10
9 6/25/2007 7/25/2007 55,844,480.56 10
10 7/25/2007 8/25/2007 54,187,845.87 10
11 8/25/2007 9/25/2007 52,579,827.31 10
12 9/25/2007 10/25/2007 51,018,998.79 10
13 10/25/2007 11/25/2007 49,503,976.06 10
14 11/25/2007 12/25/2007 48,033,415.42 10
15 12/25/2007 1/25/2008 46,606,012.63 10
16 1/25/2008 2/25/2008 45,220,501.64 10
17 2/25/2008 3/25/2008 43,875,653.56 10
18 3/25/2008 4/25/2008 42,570,275.52 10
19 4/25/2008 5/25/2008 41,303,209.64 10
20 5/25/2008 6/25/2008 40,021,317.06 10
21 6/25/2008 7/25/2008 38,698,814.40 10
22 7/25/2008 8/25/2008 37,545,430.77 10
23 8/25/2008 9/25/2008 36,194,335.33 10
24 9/25/2008 10/25/2008 35,048,322.53 10
25 10/25/2008 11/25/2008 34,002,072.59 10
26 11/25/2008 12/25/2008 32,986,531.90 10
27 12/25/2008 1/25/2009 32,000,799.53 10
28 1/25/2009 2/25/2009 31,044,000.94 10
29 2/25/2009 3/25/2009 30,115,287.27 10
30 3/25/2009 4/25/2009 29,213,834.54 10
31 4/25/2009 5/25/2009 28,338,842.92 10
32 5/25/2009 6/25/2009 27,489,536.08 10
33 6/25/2009 7/25/2009 26,635,539.75 10
34 7/25/2009 8/25/2009 25,787,418.89 10
35 8/25/2009 9/25/2009 24,108,860.16 10
36 9/25/2009 10/25/2009 22,862,609.76 10
37 10/25/2009 11/25/2009 22,163,273.17 10
38 11/25/2009 12/25/2009 21,688,800.54 10
39 12/25/2009 1/25/2010 21,051,688.54 10
40 1/25/2010 2/25/2010 20,433,279.81 10
41 2/25/2010 3/25/2010 19,833,025.55 10
42 3/25/2010 4/25/2010 19,250,392.96 10
43 4/25/2010 5/25/2010 18,684,865.09 10
44 5/25/2010 6/25/2010 18,135,940.06 10
45 6/25/2010 7/25/2010 17,603,130.70 10
46 7/25/2010 8/25/2010 17,085,964.11 10
47 8/25/2010 9/25/2010 16,583,981.29 10
48 9/25/2010 10/25/2010 16,096,736.68 10
49 10/25/2010 11/25/2010 15,623,797.80 10
50 11/25/2010 12/25/2010 15,164,744.85 10
I-1
Line Calculation Period NotionalAmount ($) Multiplier
------- -------------------------------------- ----------------------- -------------
51 12/25/2010 1/25/2011 14,719,170.34 10
52 1/25/2011 2/25/2011 14,286,554.60 10
53 2/25/2011 3/25/2011 13,859,366.98 10
54 4/25/2011 5/25/2011 13,444,722.81 10
55 5/25/2011 6/25/2011 13,042,253.99 10
56 6/25/2011 7/25/2011 12,646,120.94 10
57 7/25/2011 8/25/2011 12,261,881.17 10
58 8/25/2011 9/25/2011 11,736,221.08 10
59 9/25/2011 10/25/2011 4,370,644.50 10
60 10/25/2011 11/25/2011 329,508.82 10
61 11/25/2011 12/25/2011 0.00 10
------------------------------------------------------------------------------------------------------------
