EXHIBIT 4.4
Mortgage Loan Purchase Agreement
Mortgage Loan Purchase Agreement (the "Agreement"), dated as
of December 23, 1998, between EAB Mortgage Company, Inc. (the "Seller") and ABN
AMRO Mortgage Corporation (the "Purchaser").
Subject to the terms and conditions of this Agreement, the
Seller agrees to sell and the Purchaser agrees to purchase certain mortgage
loans (the "Mortgage Loans") as described herein and as identified on the
Mortgage Loan Schedule defined in Section 2 hereof.
Now, therefore, in consideration of the premises and the
mutual agreements set forth herein, the parties agree as follows:
SECTION 1. Purchase and Sale of the Mortgage Loans.
(a) Pursuant to the terms hereof and upon satisfaction of the conditions
set forth herein, the Seller agrees to sell and the Purchaser agrees to
purchase, Mortgage Loans having the general characteristics set forth in this
Agreement and specifically identified on the Mortgage Loan Schedule, for the
Purchase Price set forth below in Section 3(a) hereof and having an aggregate
principal balance on and as of the date of such Mortgage Loan Schedule (the
"Cut-Off Date") of approximately $92,037,078.00 after deduction of principal
payments due on or before the Cut-Off Date (which amount may vary plus or minus
5% thereof), or such other aggregate principal balance as agreed by the
Purchaser and the Seller as evidenced by the actual aggregate principal balance
of the Mortgage Loans accepted by the Purchaser on the Closing Date (as defined
below).
(b) Subject to mutual agreement between the Purchaser and the Seller, the
closing for the purchase and sale of the Mortgage Loans shall take place on
December 23, 1998 (the "Closing Date") at the office of Purchaser's counsel in
Chicago, Illinois or such other place as the parties shall agree.
SECTION 2. Mortgage Loan Schedule. Attached to this Agreement as Schedule 1
is a listing of the Mortgage Loans evidenced by promissory notes, mortgage notes
or other evidence of indebtedness (the "Mortgage Notes") evidencing the
indebtedness of an obligor (the "Mortgagor") under the mortgages, deeds of trust
or other instruments securing a Mortgage Loan (the "Mortgages") to be purchased
by and delivered to the Purchaser on the Closing Date (as such may be amended
prior to the Closing Date by mutual agreement of the parties) (the "Mortgage
Loan Schedule"). The "Mortgage Loan Schedule" as of the Closing Date shall refer
to the Mortgage Loan Schedule as delivered on the Cut-off Date related to such
Mortgage Loans to be purchased by or on behalf of the Purchaser pursuant to the
terms of this Agreement. The Mortgage Loan Schedule shall contain as to each
Mortgage Loan
listed thereon, at a minimum, the Mortgage Loan information indicated on
Schedule 2 hereto.
SECTION 3. Purchase Price.
(a) In exchange for the Mortgage Loans, on the Closing Date, the Purchaser
shall transfer to the Seller by wire transfer in immediately available funds the
purchase price (the "Purchase Price") which is equal to the principal balance
thereof as of the Cut-Off Date plus any accrued and unpaid interest thereon to
such Cut-Off Date.
(b) The Purchaser shall be entitled to all scheduled payments of principal
and interest due with respect to the Mortgage Loans after the Cut-Off Date, and
all other recoveries of principal and interest collected after the Cut-Off Date
(other than in respect of principal and interest on the Mortgage Loans due on or
before the Cut-Off Date). The Seller shall be entitled to all scheduled payments
of principal and interest due with respect to the Mortgage Loans on or before
the Cut-Off Date, and all other recoveries of principal and interest collected
on or before the Cut-Off Date (other than in respect of principal and interest
on the Mortgage Loans due after the Cut-Off Date). The Principal Balance of each
Mortgage Loan as of the Cut-Off Date is determined after deduction of payments
of principal due on or before the Cut-Off Date whether or not collected.
Therefore, payments of scheduled principal and interest prepaid for a date due
following the Cut-Off Date shall not be deducted from the Principal Balance as
of the Cut-Off Date but such prepaid amounts shall belong to and be promptly
remitted to the Purchaser.
SECTION 4. Examination of Mortgage Files.
Prior to the Closing Date, the Seller will have made files for each
Mortgage Loan, that consist at least of the documents listed on Schedule 3
attached hereto (with respect to each Mortgage Loan, a "Mortgage File", and
collectively, the "Mortgage Files"), available to the Purchaser or its agents,
for examination at the Seller's offices or such other location as shall
otherwise be agreed upon by the Purchaser and the Seller. The Purchaser may
purchase all or part of the Mortgage Loans with or without conducting any
partial or complete examination. The fact that the Purchaser or its agents have
conducted or have failed to conduct any partial or complete examination of the
Mortgage Files shall not affect the Purchaser's rights under this Agreement,
including, but not limited to, the rights to demand repurchase, substitution or
other relief as provided in this Agreement.
SECTION 5. Transfer of Mortgage Loans; Possession of Mortgage Files.
(a) On the Closing Date, subject to the satisfaction of the terms and
conditions hereof the Seller shall sell, transfer, assign, set over and
otherwise convey to the Purchaser, without recourse, but subject to the terms of
this Agreement, all right, title and interest of the Seller in and to the
Mortgage Loans and all proceeds thereof, wherever located, including without
limitation, all amounts in respect of principal and interest received or
receivable with
-2-
respect to Mortgage Loan payments due after the Cut-Off Date (and including
scheduled payments of principal and interest due after the Cut-Off Date but
received by the Seller on or before the Cut-Off Date, but not including payments
of principal and interest due on the Mortgage Loans on or before the Cut-Off
Date), together with the proceeds of any related mortgage insurance policies.
Such transfer shall be made directly to the Purchaser in accordance with the
letter delivered to the Seller by the Purchaser attached hereto as Exhibit A
(the "Instruction Letter"). The Seller's records will accurately reflect the
sale of each Mortgage Loan to the Purchaser.
(b) The ownership of each Mortgage Loan and the related Mortgage Note, the
Mortgage and the contents of the related Mortgage File shall be, upon
satisfaction of subsection 5(a) hereof, vested in the Purchaser and the
ownership of all records and documents with respect to such Mortgage Loan
prepared by or which come into the possession of the Seller shall immediately
vest in the Purchaser and shall be retained and maintained by the Seller at the
will and for the benefit of the Purchaser in a custodial capacity only. The
Seller shall deliver to the Purchaser or its agent in accordance with the
instructions set forth in Exhibit A, simultaneously with the execution and
delivery of this Agreement or prior to the Closing Date, all of the documents
pertaining to each Mortgage Loan.
(c) The transfer of the Mortgage Loans as described herein shall be
absolute and is intended by the parties to be a sale. In the event that a court
deems the conveyance set forth herein not to constitute a sale, the Seller shall
have granted to the Purchaser and the Trustee a first priority security interest
in the Mortgage Loans and in the proceeds thereof of any kind or nature
whatsoever, and in the proceeds of any related insurance policies, subject to
the satisfaction or waiver of the conditions set forth in Section 11 hereof, and
shall take, or shall cause to have been taken, all steps necessary prior to the
Closing Date to perfect such security interest in the Purchaser.
SECTION 6. Books and Records.
On the Closing Date, following the sale of the Mortgage Loans to the
Purchaser, title to each Mortgage and the related Mortgage Note shall be
transferred to the Purchaser or its assignee in accordance with this Agreement.
All rights arising out of the Mortgage Loans after the Cut-Off Date including,
but not limited to, any and all funds received on or in connection with a
Mortgage Loan and due after the Cut-Off Date shall be received and held by the
Seller in a custodial capacity for the benefit of the Purchaser or its assignee
as the owner of the Mortgage Loans in accordance herewith and shall be delivered
or caused to be delivered by the Seller to the Purchaser or its assignee on or
immediately following the Closing Date. Any funds received by the Seller, the
Purchaser or ABN AMRO Mortgage Corporation after the Cut-Off Date but due prior
to the Cut-Off Date shall remain the property of the Seller and shall be
promptly remitted to the Seller.
-3-
SECTION 7. Further Actions; Financing Statements.
(a) In furtherance of the provisions of Section 5(c) hereof, the Seller
agrees to take or cause to be taken such further actions to execute, deliver and
file or cause to be executed, delivered and filed, such further documents and
instruments (including, without limitation, any UCC financing statements) as may
be necessary, or as the Purchaser may reasonably request, in order to perfect
and maintain the security interest created pursuant to said section and to
otherwise fully effectuate the purposes, terms and conditions of this Agreement,
and the Purchaser shall cooperate in any such action.
(b) The Seller shall: (i) promptly execute, deliver, and file any financing
statements, amendments, continuation statements, assignments, certificates and
other documents with respect to such security interest as may be necessary to
enable the Purchaser to perfect or to maintain the perfection of such security
interest, each in form and substance satisfactory to the Purchaser; and the
Seller hereby grants to the Purchaser, subject to the satisfaction or waiver of
the conditions set forth in Section 11 hereof, the right, at the Purchaser's
option, to file any or all such financing statements, amendments, continuation
statements, assignments, certificates and other documents pursuant to the UCC
and otherwise without its signature and hereby irrevocably appoints the
Purchaser, subject to the satisfaction or waiver of the conditions set forth in
Section 11 hereof, as its attorney-in-fact to execute, deliver and file any such
financing statements, amendments, continuation statements, assignments,
certificates and other documents in the Seller's name and to perform all other
acts which the Purchaser deems appropriate to perfect or to maintain the
perfection of the security interest; and (ii) notify the Purchaser within five
(5) days after the occurrence of any of the following: (A) any change in the
Seller's corporate name or any trade name; (B) any change in the Seller's
location of its chief executive office or principal place of business; and (C)
any merger or consolidation or other change in Seller's identity or material
change in its corporate structure.
SECTION 8. Representations, Warranties and Agreements of Seller.
(a) The Seller hereby represents and warrants to the Purchaser as of the
Closing Date (or such other date as is specified in the related representation
or warranty) as follows:
(i) The Seller has been duly created and is validly existing as a
corporation under the laws of the state of New York;
(ii) The execution and delivery of this Agreement by the Seller and
its performance of and compliance with the terms of this Agreement will not
violate the Seller's charter or by-laws or will not conflict with or result
in a breach of any of the terms or provisions of, or constitute a default
under, any indenture, mortgage, deed of trust, loan agreement or other
material agreement or instrument to which the Seller is
-4-
a party or by which the Seller or to which any of the property or assets of
the Seller is subject;
(iii) This Agreement, assuming due authorization, execution and
delivery by the Purchaser, constitutes a valid and legally binding
obligation of the Seller, enforceable against the Seller in accordance with
its terms, subject, as to enforcement, to bankruptcy, insolvency,
reorganization and other similar laws of general applicability relating to
or affecting creditors' rights and to general equity principles, regardless
of whether such enforcement is considered in a proceeding in equity or at
law;
(iv) The Seller 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, which default might have consequences
that would materially and adversely affect the condition (financial or
other) or operations of the Seller or its properties or might have
consequences that would affect its performance hereunder;
(v) No litigation is pending or, to the best of the Seller's
knowledge, threatened against the Seller which would prohibit its entering
into this Agreement or performing its obligations under this Agreement;
(vi) The consummation of the transactions contemplated by this
Agreement are in the ordinary course of business of the Seller, and the
transfer, assignment and conveyance of the Mortgage Notes and the Mortgages
by the Seller pursuant to this Agreement is not subject to the bulk
transfer or any similar statutory provisions in effect in the State of New
York;
(vii) With respect to each Mortgage Loan:
(a) that the information set forth in the Mortgage Loan Schedule
appearing as an exhibit to this Agreement is true and correct in all
material respects at the date or dates respecting which such
information is furnished as specified therein;
(b) the Seller is the sole owner and holder of each Mortgage Loan
free and clear of all liens, pledges, charges or security interests of
any nature and has full right and authority, subject to no interest or
participation of, or agreement with, any other party, to sell and
assign the same;
(c) no payment of principal of or interest on or in respect of
any Mortgage Loan is 30 days or more past due from the Due Date of
such Mortgage Loan;
-5-
(d) as of the date of the transfer of the Mortgage Loans to the
Purchaser, there is no valid offset, defense or counterclaim to any
Mortgage Note or Mortgage;
(e) there is no proceeding pending, or to the best of the
Seller's knowledge, threatened for the total or partial condemnation
of any of the real property, together with any improvements thereto,
securing the indebtedness of the Mortgagor under the related Mortgage
Loan (the "Mortgaged Property") and the Mortgaged Property is free of
material damage and is in good repair and neither the Mortgaged
Property nor any improvement located on or being part of the Mortgaged
Property is in violation of any applicable zoning law or regulation;
(f) that each Mortgage Loan complies in all material respects
with applicable state or federal laws, regulations and other
requirements, pertaining to usury, equal credit opportunity and
disclosure laws, and each Mortgage Loan was not usurious at the time
of origination;
(g) to the best of the Seller's knowledge, all taxes,
governmental assessments and insurance premiums previously due and
owing, and which may become a lien against the Mortgaged Property,
with respect to the Mortgaged Property have been paid;
(h) that each Mortgage Note and the related Mortgage 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
or other similar laws affecting the enforcement of creditors' rights
generally and by general equity principles (regardless of whether such
enforcement is considered in a proceeding in equity or at law); all
parties to the Mortgage Note and the Mortgage had legal capacity to
execute the Mortgage Note and the Mortgage; and each Mortgage Note and
Mortgage have been duly and properly executed by the Mortgagor;
(i) that each Mortgage is a valid and enforceable first lien on
the property securing the related Mortgage Note, and that each
Mortgage Loan is covered by an ALTA mortgagee title insurance policy
or other form of policy or insurance generally acceptable to FNMA or
FHLMC, issued by, and is a valid and binding obligation of, a title
insurer acceptable to FNMA or FHLMC insuring the originator, its
successor and assigns, as to the lien of the Mortgage in the original
principal amount of the Mortgage Loan subject only to (a) the lien of
current real property taxes and assessments not yet due and payable,
(b) covenants, conditions and restrictions, rights of way, easements
and other matters of public record as of the date of recording of such
-6-
Mortgage acceptable to mortgage lending institutions in the area in
which the Mortgaged Property is located or specifically referred to in
the appraisal performed in connection with the origination of the
related Mortgage Loan and (c) such other matters to which like
properties are commonly subject which do not individually, or in the
aggregate, materially interfere with the benefits of the security
intended to be provided by the Mortgage;
(j) neither the Seller nor any prior holder of any Mortgage has,
except as the Mortgage File may reflect, modified the Mortgage in any
material respect; satisfied, cancelled or subordinated such Mortgage
in whole or in part; released such Mortgaged Property in whole or in
part from the lien of the Mortgage; or executed any instrument of
release, cancellation, modification or satisfaction;
(k) that each Mortgaged Property consists of a fee simple estate,
a leasehold estate or condominium form of ownership in real property;
(l) the condominium projects that include the condominiums that
are the subject of any condominium loan are generally acceptable to
FNMA or FHLMC;
(m) no foreclosure action is threatened or has been commenced
(except for the filing of any notice of default) with respect to the
Mortgage Loan; and except for payment delinquencies not in excess of
30 days, to the best of the Seller's knowledge, there is no default,
breach, violation or event of acceleration existing under the Mortgage
or the related 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 of
acceleration; and the Seller has not waived any default, breach,
violation or event of acceleration;
(n) Each Mortgage Loan was originated on FNMA or FHLMC uniform
instruments for the state in which the mortgaged property is located;
(o) that based upon a representation by each Mortgagor at the
time of origination or assumption of the applicable Mortgage Loan,
100% of the Mortgage Loans measured by Principal Balance were to be
secured by owner-occupied residences and no more than 0% of the
Mortgage Loans measured by Principal Balance were to be secured by
non-owner-occupied residences;
(p) that an appraisal of each Mortgaged Property was conducted at
the time of origination of the related Mortgage Loan, and that
-7-
each such appraisal was conducted in accordance with FNMA or FHLMC
criteria, on FNMA or FHLMC forms and comparables on at least three
properties were obtained;
(q) that no Mortgage Loan had a Loan-to-Value Ratio at
origination in excess of 95%;
(r) the Mortgage Loans were not selected in a manner to adversely
affect the interests of the Purchaser and the Seller knows of no
conditions which reasonably would cause it to expect any Mortgage Loan
to become delinquent or otherwise lose value;
(s) each Mortgage Loan was either (A) originated directly by or
closed in the name of either: (i) a savings and loan association,
savings bank, commercial bank, credit union, insurance company, or
similar institution which is supervised and examined by a federal or
state authority or (ii) a mortgagee approved by the Secretary of
Housing and Urban Development pursuant to Sections 203 and 211 of the
National Housing Act or (B) originated or underwritten by an entity
employing underwriting standards consistent with the underwriting
standards of an institution as described in subclause (A)(i) or
(A)(ii) above;
(t) each Mortgage Loan is a "qualified mortgage" within the
meaning of Section 860G of the Internal Revenue Code of 1986; and
(u) each Mortgage Loan that has a Loan-to-Value Ratio in excess
of 80% is covered by a primary mortgage insurance policy.
It is understood and agreed that the representations and warranties
set forth in this Section 8 shall survive the sale of the Mortgage Loans to
the Purchaser and shall inure to the benefit of the Purchaser,
notwithstanding any restrictive or qualified endorsement on any Mortgage
Note or Assignment of Mortgage or the examination of any Mortgage File.
Upon discovery by either the Seller, the Purchaser or its designees of
a breach of any of the foregoing representations or warranties of the
Seller which materially and adversely affects (1) the value of any of the
Mortgage Loans actually delivered or (2) the interests of the Purchaser
therein, the party discovering such breach shall give prompt written notice
to the other. Within 90 (ninety) days of its discovery or its receipt of
notice of any such breach of a representation or warranty, the Seller
shall, with respect to the Mortgage Loan(s) to which such breach relates,
(i) cure such breach in all material respects (except for a breach of that
portion of the representation and warranty relating to any casualty from
the presence of hazardous waste or hazardous
-8-
substances), (ii) repurchase such Mortgage Loan or Mortgage Loans (or any
property acquired in respect thereof) from the Purchaser at the Purchase
Price, as adjusted for the then current principal balance or (iii) within
the 90 (ninety)-day period following the Closing Date substitute another
mortgage loan for such Mortgage Loan. Such substitute mortgage loan shall
on the date of substitution, (i) have a principal balance not in excess of
the principal balance of the defective Mortgage Loan, (ii) be accruing
interest at a rate of interest at least equal to that of the defected
Mortgage Loan, (iii) have a remaining term to stated maturity not greater
than, and not more than two years less than, that of the Mortgage Loan so
substituted, (iv) have an original loan-to-value ratio not higher than that
of the Mortgage Loan so substituted and a current loan-to-value ratio not
higher than that of the Mortgage Loan so substituted, and (v) comply with
all the representations and warranties relating to Mortgage Loans set forth
herein, as of the date of substitution (such mortgage loan being referred
to herein as a "Qualifying Substitute Mortgage Loan"). Except as set forth
in Section 13 hereof, it is understood and agreed that the obligations of
the Seller set forth in this Section 8 to cure, substitute for or
repurchase a defective Mortgage Loan constitute the sole remedies of the
Purchaser respecting a breach of the foregoing representations and
warranties.
The Purchaser, upon receipt by it of the full amount of the Purchase
Price as adjusted for the then current principal balance for a Mortgage
Loan that is repurchased, or upon receipt of the Mortgage File for a
Qualifying Substitute Mortgage Loan for a Mortgage Loan that is substituted
or repurchased, shall release or cause to be released and reassign to the
Seller the related Mortgage File for the Mortgage Loan that is substituted
and shall execute and deliver such instruments of transfer or assignment,
in each case without recourse, representation, or warranty, as shall be
necessary to vest in the Seller or its designee or assignee title to any
such substituted Mortgage Loan released pursuant hereto, free and clear of
all security interests, liens and other encumbrances created by this
Agreement, which instruments shall be prepared by the Seller at its expense
and shall be reasonably acceptable to the Purchaser, and the Purchaser
shall have no further responsibility with respect to the Mortgage File
relating to such Mortgage Loan that is substituted.
Any cause of action against the Seller or relating to or arising out
of the breach of any representations and warranties made in this Section 8
shall accrue as to any Mortgage Loan upon (i) discovery of such breach by
the Purchaser or notice thereof by the Seller to the Purchaser, (ii)
failure by the Seller to cure such breach, repurchase such Mortgage Loan or
substitute a Qualifying Substitute Mortgage Loan as specified above, and
(iii) demand upon the Seller by the Purchaser for all amounts payable in
respect of such Mortgage Loan.
-9-
SECTION 9. Representations, Warranties and Agreements of Purchaser.
(a) The Purchaser hereby represents and warrants to the Seller, as of the
date hereof (or such other date as is specified in the related representation or
warranty) as follows:
(i) The Purchaser is a corporation duly formed and validly existing
under the laws of the State of Delaware;
(ii) The execution and delivery of this Agreement by the Purchaser and
its performance of and compliance with the terms of this Agreement will not
violate the Purchaser's corporate charter or by-laws or will not conflict
with or result in a breach of any of the terms or provisions of, or
constitute a default under, any indenture, mortgage, deed of trust, loan
agreement or other material agreement or instrument to which the Purchaser
is a party or by which the Purchaser or to which any property or assets of
the Purchaser is subject;
(iii) This Agreement, assuming due authorization, execution and
delivery by the Seller, constitutes a valid and legally binding obligation
of the Purchaser, enforceable against the Purchaser in accordance with its
terms, subject, as to enforcement, to bankruptcy, insolvency,
reorganization and other similar laws of general applicability relating to
or affecting creditors' rights and to general equity principles, regardless
of whether such enforcement is considered in a proceeding in equity or at
law;
(iv) The Purchaser 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, which the Purchaser default might
have consequences that would materially and adversely affect the condition
(financial or other) or operations of the Purchaser or its properties or
might have consequences that would affect its performance hereunder; and
(v) No litigation is pending or, to the best of the Purchaser's
knowledge, threatened against the Purchaser which would prohibit its
entering into this Agreement or performing its obligations under this
Agreement;
SECTION 10. Purchaser's Conditions to Closing. The obligations of the
Purchaser under this Agreement shall be subject to the satisfaction, on or prior
to the Closing Date, of the following conditions:
(a) The obligations of the Seller required to be performed by it on or
prior to the Closing Date pursuant to the terms of this Agreement shall have
been duly performed and complied with and all of the representations and
warranties of the Seller under this Agreement shall be true and correct as of
the date hereof and as of the Closing Date, and no
-10-
event shall have occurred which, with notice or the passage of time, or both,
would constitute a default under this Agreement, and the Purchaser shall have
received a certificate to that effect signed by an Authorized Officer (as
defined below) of the Seller.
(b) The Purchaser or the Purchaser's document custodian shall have
received, or the Purchaser's attorney shall have received in escrow, all of the
following closing documents, in such forms as are agreed upon and acceptable to
the Purchaser, duly executed by all signatories other than the Purchaser, as
required pursuant to the respective terms thereof:
(i) An assignment or assignments of the Mortgage Loans to the
Purchaser substantially in the form attached hereto as Exhibit B with such
changes as are required to adapt the assignment to the proper form in the
jurisdiction where the related Mortgage Property is located, and each
original Mortgage Note, duly endorsed originally or by facsimile, without
recourse, to the Purchaser, in each case in accordance with the
instructions set forth in Exhibit A attached hereto, which assignment or
assignments and Mortgage Note shall be delivered to and held by the
Purchaser or its agent on behalf of the Purchaser;
(ii) The Mortgage Loan Schedule prepared by Purchaser dated as of the
related Closing Date and attached hereto;
(iii) A certificate signed by an officer, which officer may be either
a senior vice president, a vice president, an assistant vice president or
assistant secretary (an "Authorized Officer"), dated as of the Closing
Date, substantially in the form attached hereto as Exhibit C to the parties
hereto, and attached thereto copies of the charter and by-laws and a Good
Standing Certificate or a memorandum setting forth the verbal assurances
from the appropriate regulatory authorities with respect to the Seller will
be immediately forthcoming; and
(iv) An opinion of Seller's counsel in substantially the form attached
hereto as Exhibit D.
(v) A security release certification, in a form acceptable to the
Purchaser, executed by the appropriate mortgagee or secured party, if any
of the Mortgage Loans have at any time been subject to any security
interest, pledge or hypothecation for the benefit of such person.
(c) The Seller will furnish to the Purchaser such other certificates of its
officers or others and such other documents to evidence fulfillment of the
conditions set forth in this Agreement as the Purchaser and its attorney may
reasonably request.
-11-
SECTION 11. Seller's Conditions to Closing. The obligations of the Seller
under this Agreement shall be subject to the satisfaction, on or prior to the
Closing Date, of the following conditions:
(a) The obligations of the Purchaser required to be performed by it on or
prior to the Closing Date pursuant to the terms of this Agreement shall have
been duly performed and complied with and all of the representations and
warranties of the Purchaser under this Agreement shall be true and correct as of
the date hereof and as of the Closing Date, and no event shall have occurred
which, with notice or the passage of time, or both, would constitute a default
under this Agreement, and the Seller shall have received a certificate to that
effect signed by an Authorized Officer of the Purchaser.
(b) The Seller shall have received, or the Seller's attorney shall have
received in escrow, all of the following closing documents, in such forms as are
agreed upon and acceptable to the Seller, duly executed by all signatories other
than the Seller as required pursuant to the respective terms thereof:
(i) A certificate signed by an Authorized Officer dated as of the
Closing Date, in the form acceptable to the parties hereto, and attached
thereto the resolutions of the Purchaser authorizing the transactions
contemplated by this Agreement, together with copies of the Articles of
Association and by-laws as of a recent date with respect to the Purchaser;
(c) The Purchaser will furnish to the Seller such other certificates of its
officers or others and such other documents to evidence fulfillment of the
conditions set forth in this Agreement as the Seller and its attorney may
reasonably request.
SECTION 12. Indemnification.
(a) The Seller agrees to indemnify and hold harmless the Purchaser against
any and all losses, claims, expenses, damages or liabilities to which Purchaser
may become subject, insofar as such losses, claims, expenses, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any
representation or warranty made by the Seller in Section 8 hereof on which
Purchaser has relied, being, or alleged to be, materially untrue or incorrect.
This indemnity will be in addition to any liability which the Seller may
otherwise have.
(b) The Purchaser agrees to indemnify and hold harmless the Seller solely
in its capacity as seller of the Mortgage Loans against any and all losses,
claims, expenses, damages or liabilities to which the Seller may become subject,
insofar as such losses, claims, expenses, damages or liabilities (or actions in
respect thereof) arise out of or are based upon any representation or warranty
made by the Purchaser in Section 9 hereof on which the Seller has relied, being,
or alleged to be, materially untrue or incorrect (notwithstanding the
Purchaser's lack of knowledge with respect to the substance of any
representation or
-12-
warranty to which Section 9 applies which is made to the best of the Purchaser's
knowledge). This indemnity will be in addition to any liability which the
Purchaser may otherwise have.
(c) Promptly after receipt by either the Purchasers or the Seller of notice
of the commencement of any action or proceeding in any way relating to or
arising from this Agreement, such party will notify the other party of the
commencement thereof; but the omission so to notify the party from whom
indemnification is sought (the "Indemnifying Party") will not relieve the
Indemnifying Party from any liability which it may have to the party seeking
indemnification (the "Indemnified Party") except to the extent that the
Indemnifying Party is adversely affected by the lack of notice. In case any such
action is brought against the Indemnified Party, and it notifies the
Indemnifying Party of the commencement thereof, the Indemnifying Party will be
entitled to participate in the defense (with the consent of the Indemnified
Party which shall not be unreasonably withheld) of such action at the
Indemnifying Party's expense.
SECTION 13. Notices. All demands, notices and communications hereunder
shall be in writing and shall be deemed to have been duly given if mailed, by
registered or certified mail, return receipt requested, or, if by other means,
when received by the other party. Notices to the Seller shall be directed to EAB
Mortgage Company, Inc., 000 Xxx Xxxxxx, Xxxxxx Xxxx, Xxx Xxxx 00000, Attention:
Xxxx XxXxxx - Senior Vice President; and notices to the Purchaser shall be
directed to ABN AMRO Mortgage Corporation, 000 Xxxx Xxxxxxx Xxxxxx, Xxxxx 0000,
Xxxxxxx, Xxxxxxxx 00000, Attention: Xxxxx Xxxxxxx - Director - ABN AMRO Mortgage
Operations; or such other addresses as may hereafter be furnished to the other
party by like notice.
SECTION 14. Termination. This Agreement may be terminated (i) by the mutual
consent of the parties hereto, or (ii) by the Purchaser if the conditions to the
Purchaser's obligations to closing set forth under Section 10 hereof are not
fulfilled as and when required to be fulfilled or (iii) by the Seller if the
Purchaser's obligations under Section 11 hereof are not fulfilled as and when
required. In the event of a termination pursuant to Section 14(ii), the Seller
agrees that it will pay the out-of-pocket fees and expenses of the Purchaser in
connection with the transactions contemplated by this Agreement and in the event
of a termination pursuant to Section 14(iii), the Purchaser agrees that it will
pay the out-of-pocket fees and expenses of the Seller in connection with the
transactions contemplated by this Agreement.
SECTION 15. Representations, Warranties and Agreements to Survive Delivery.
All representations, warranties and agreements contained in this Agreement, or
in certificates of officers of the Seller and the Purchaser submitted pursuant
hereto, shall remain operative and in full force and effect and shall survive
transfer and sale of the Mortgage Loans to the Purchaser.
-13-
SECTION 16. Severability. If any provision of this Agreement shall be
prohibited or invalid under applicable law, the Agreement shall be ineffective
only to such extent, without invalidating the remainder of this Agreement.
SECTION 17. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be an original, but both of which together
shall constitute one and the same agreement.
SECTION 18. Governing Law. This Agreement shall be deemed to have been made
in the State of New York and shall be interpreted in accordance with the laws of
such state without regard to the principles of conflicts of law of such state.
SECTION 19. Further Assurances. The Seller and the Purchaser agree to
execute and deliver such instruments and take such actions as the other party
may, from time to time, reasonably request in order to effectuate the purpose
and to carry out the terms of this Agreement.
SECTION 20. Successors and Assigns. This Agreement shall be binding upon
and inure to the benefit of and be enforceable by the Seller and the Purchaser
and their permitted successors and assigns. The Seller acknowledges and agrees
that the Purchaser may assign its rights under this Agreement. Any person into
which the Seller may be merged or consolidated (or any person resulting from any
merger or consolidation involving the Seller), or any person succeeding to the
business of the Seller shall be considered the "successor" of the Seller
hereunder. Except as provided in the two preceding sentences, this Agreement
cannot be assigned, pledged or hypothecated by any party hereto without the
written consent of the other party to this Agreement. Notwithstanding anything
to the contrary in this Section 20, the parties hereto agree that the Purchaser
has the right to assign its rights and interest in, to and under Section 8
hereof.
SECTION 21. Amendments. No term or provision of this Agreement may be
waived or modified unless such waiver or modification is in writing and signed
by a duly authorized officer of the party against whom such waiver or
modification is sought to be enforced.
-14-
IN WITNESS WHEREOF, the Seller and the Purchaser have caused their names to
be signed hereto by their respective duly authorized officers as of the date
first above written.
EAB Mortgage Company, Inc.,
as Seller
By: /s/
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
Mortgage Loan Purchase Agreement
(sale from EABMC to Depositor)
ABN AMRO Mortgage Corporation,
as Purchaser
By: /s/
--------------------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Senior Vice President
Mortgage Loan Purchase Agreement
(sale from EABMC to Depositor)
SCHEDULE 1
MORTGAGE LOAN SCHEDULE
A copy of the Mortgage Loan Schedule may be obtained by contacting the
Registrant.
SCHEDULE 2
MORTGAGE LOAN SCHEDULE INFORMATION
Each Mortgage Loan shall be identified by at least the following details,
among others, relating to each Mortgage Loan:
(i) the loan number of the Mortgage Loan and name of the related
Mortgagor;
(ii) the street address of the Mortgaged Property including city,
state and zip code;
(iii) the mortgage interest rate as of the Cut-Off Date;
(iv) the original term and maturity date of the related Mortgage
Note;
(v) the original principal balance;
(vi) the first payment date;
(vii) the monthly payment in effect as of the Cut-Off Date;
(viii) the date of the last paid installment of interest;
(ix) the unpaid principal balance as of the close of business on
the Cut-Off Date;
(x) the loan-to-value ratio at origination and as of the Cut-Off
Date;
(xi) the type of property;
(xii) the nature of occupancy at origination;
(xiii) the county in which Mortgaged Property is located, if
available; and
(xiv) the Closing Date.
SCHEDULE 3
MORTGAGE FILE INFORMATION
Each Mortgage File shall include at least the following
documents, among others, with respect to each Mortgage Loan transferred and
assigned from the Seller to the Purchaser, or its agent:
(i) the original Mortgage Note bearing all intervening
endorsements endorsed, "Pay to the order of Chase Bank of
Texas, National Association for the benefit of the
Certificateholders of ABN AMRO Mortgage Corporation Series
1998-5 Attn: Corporate Trust Department, 000 Xxxxxx Xxxxxx,
Xxxxxxx, XX 00000, without recourse" and signed in the name of
the Seller by an Authorized Officer showing an unbroken chain
of title from the originator thereof to the person endorsing;
(ii) (a) the original Mortgage with evidence of recording thereon,
and if the Mortgage was executed pursuant to a power of
attorney, a certified true copy of the power of attorney
certified by the recorder's office, with evidence of recording
thereon, or certified by a title insurance company or escrow
company to be a true copy thereof; provided that if such
original Mortgage or power of attorney cannot be delivered
with evidence of recording thereon on or prior to the Closing
Date because of a delay caused by the public recording office
where such original Mortgage has been delivered for
recordation or because such original Mortgage has been lost,
the Seller shall deliver or cause to be delivered to the
Purchaser a true and correct copy of such Mortgage, together
with (1) in the case of a delay caused by the public recording
office, a certificate signed by an Authorized Officer of the
Seller stating that such original Mortgage has been dispatched
to the appropriate public recording official for recordation
or (2) in the case of an original Mortgage that has been lost,
a certificate by the appropriate county recording office where
such Mortgage is recorded or from a title insurance company or
escrow company indicating that such original was lost and the
copy of the original mortgage is a true and correct copy;
(b) the original assignment to "Chase Bank of Texas, National
Association, as Trustee," which assignment shall be in form
and substance acceptable for recording, or a copy certified by
the Seller as a true and correct copy of the original
assignment which has been sent for recordation. Subject to the
foregoing, such assignments may, if permitted by law, be by
blanket assignments for Mortgage Loans covering
Mortgaged Properties situated within the same county. If the
assignment is in blanket form, a copy of the assignment shall
be included in the related individual Mortgage File;
(iii) the originals of any and all instruments that modify the terms
and conditions of the Mortgage Note, including but not limited
to modification, consolidation, extension and assumption
agreements including any adjustable rate mortgage (ARM) rider,
if any;
(iv) the originals of all required intervening assignments, if any
with evidence of recording thereon, and if such assignment was
executed pursuant to a power of attorney, a certified true
copy of the power of attorney certified by the recorder's
office, with evidence of recording thereon, or certified by a
title insurance company or escrow company to be a true copy
thereof; provided that if such original assignment or power of
attorney cannot be delivered with evidence of recording
thereon on or prior to the Closing Date because of a delay
caused by the public recording office where such original
assignment has been delivered for recordation or because such
original assignment has been lost, the Seller shall deliver or
cause to be delivered to the Purchaser a true and correct copy
of such assignment, together with (a) in the case of a delay
caused by the public recording office, a certificate signed by
an Authorized Officer of the Seller stating that such original
assignment has been dispatched to the appropriate public
recording official for recordation or (b) in the case of an
original assignment that has been lost, a certificate by the
appropriate county recording office where such assignment is
recorded or from a title insurance company or escrow company
indicating that such original was lost and the copy of the
original assignment is a true and correct copy;
(v) the original mortgage policy of title insurance (including, if
applicable, the endorsement relating to the negative
amortization of the Mortgage Loans) or in the event such
original title policy is unavailable, 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 with the original policy of title insurance to
follow within 180 days of the Closing Date;
(vi) the mortgage insurance certificate;
(vii) hazard insurance certificates and copies of the Hazard
Insurance Policy and, if applicable, flood insurance policy;
and
(viii) any and all other documents, opinions and certificates
executed and/or delivered by the related Mortgagor and/or its
counsel in connection
-2-
with the origination of such Mortgage Loan which may include
Truth- in-Lending Statement and other legal statements,
Appraisal and Survey.
-3-
EXHIBIT A
INSTRUCTION LETTER
ABN AMRO Mortgage Corporation
000 Xxxx Xxxxxxx Xxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxxxxx 00000
________ __, 1998
EAB Mortgage Company, Inc.
000 Xxx Xxxxxx
Xxxxxx Xxxx, Xxx Xxxx 00000
Dear Ladies and Gentlemen:
Pursuant to the Mortgage Loan Purchase Agreement dated as of December
23, 1998 (the "Purchase Agreement") between you and us, we have agreed to
purchase from you certain Mortgage Loans. All capitalized terms used herein and
not otherwise defined shall have the meanings set forth in the Purchase
Agreement.
In order to facilitate these transactions, and for the purpose of
convenience only, we hereby authorize and direct you to:
Action Due Date
1. Endorse mortgage notes to: one week prior to funding
"Pay to the order of
Chase Bank of Texas, National Association
for the benefit of the Certificateholders
of ABN AMRO Mortgage Corporation
Series 1998-5, Attn: Corporate Trust
Department, 000 Xxxxxx Xxxxxx,
Xxxxxxx, XX 00000,
without recourse"
2. Assign mortgages to be recorded one week prior to funding
to Chase Bank of Texas, National
Association for the benefit of the
Certificateholders of ABN AMRO Mortgage
Corporation Series 1998-5:
3. Deliver to the Purchaser or its agent all two business days after funding
Mortgage Loan documents pertaining to each
loan
4. Deliver to the Purchaser's servicer all one week prior to Servicing
Mortgage Loan servicing documents transfer date
pertaining to each loan
5. Provide lost mortgage note affidavits, certified one week prior to funding
copies of all missing mortgages, and certified
recorded copies of missing intervening
assignments
6. Mortgage Loan Schedule generated by one day prior to funding
Purchaser and agreed to by Seller
Sincerely,
ABN AMRO Mortgage Corporation
By:
--------------------------------------
Name:
------------------------------------
Title:
-----------------------------------
-2-
EXHIBIT B
FORM OF ASSIGNMENT
EAB Mortgage Company, Inc., a New York corporation (the "Seller"), in
exchange for $__________ in hand paid and other good and valuable consideration,
hereby grants, bargains, sells, assigns, transfers, conveys, and sets over to
ABN AMRO Mortgage Corporation, a Delaware corporation (the "Purchaser"), all of
the Seller's right, title, and interest in, to, and under the mortgage loans
listed on Schedule 1 attached hereto, the mortgage notes evidencing or relating
to such mortgage loans, all mortgages, trust deeds, title insurance policies,
property insurance policies, chattel paper, loan guaranties, loan accounts,
surveys, instruments, certificates, and other documents whatsoever evidencing or
relating to such mortgage notes and mortgage loans, and all books, ledgers,
books of account, records, writings, data bases, information, and computer
software (and all documentation therefor or relating thereto, and all licenses
relating to or covering such computer software and/or documentation), and all
other property, rights, title, and interests whatsoever relating to, used, or
useful in connection with, or evidencing, embodying, incorporating, or referring
to, any of the foregoing (the "Mortgages"). The Seller warrants to the Purchaser
that the Seller is the owner of the Mortgages, subject to no liens, claims, or
encumbrances.
Dated: _____________, 1998 EAB Mortgage Company, Inc.
By:
---------------------------------
Name:
---------------------------
Title:
---------------------------
-0-
XXXXXXXXXXXX XX __________ __, 1998
ABN AMRO Mortgage Corporation
By:
--------------------------------------------
Name:
----------------------------------------
Title:
---------------------------------------
-3-
STATE OF ____________ )
)
COUNTY OF ___________ )
I, ______________, a Notary Public in and for the said County and
State, do hereby certify that ____________, personally known to me to be the
same person whose name is subscribed to the foregoing instrument as
_______________ of __________________, appeared before me this day in person
and, being first sworn, acknowledged that he signed and delivered the said
instrument as his own free and voluntary act, and as the free and voluntary act
of said corporation as the ___________ of ____________, a ____________, for the
uses and purposes therein set forth and that he was duly authorized to execute
the said instrument by the __________________ of said _________________.
Given under my hand and seal, this ____ day of ____________, 1998.
-----------------------------------------
Notary Public
My commission expires:
-------------------
EXHIBIT C
FORM OF OFFICER'S CERTIFICATE
EAB Mortgage Company, Inc.
I, _________________, do hereby certify pursuant to Section 10 (a) and
(b)(iii) of the Purchase Agreement (as hereinafter defined) that I am the duly
elected Senior Vice President and Assistant Secretary of EAB Mortgage Company,
Inc. ("EAB"), a New York corporation, and further certify as follows:
1. Attached hereto as Exhibit "A" is a true and correct copy
of the Certificate of Incorporation of EAB. There has been no amendment
or other document filed affecting the charter of EAB since __________
__, 199_, and no such amendment has been authorized.
2. Attached hereto as Exhibit "B" is a true and correct copy
of the by-laws of EAB as in full force and effect since __________ __,
199_.
3. No proceedings looking toward merger, consolidation,
liquidation, or dissolution of EAB are pending or contemplated.
4. Each person who, as an officer or representative of EAB,
signed (a) the Purchase Agreement, and (b) any other document delivered
pursuant thereto or on the date hereof in connection with the Mortgage
Loan Purchase Agreement dated December 23, 1998, between EAB, as
seller, and ABN AMRO Mortgage Corporation, as Purchaser (the Purchase
Agreement") was, at the respective times of such signing and delivery,
and is as of the date hereof duly elected or appointed, qualified and
acting as such officer or representative, and the signatures of such
persons appearing on such documents are their genuine signatures.
5. Attached hereto as Exhibit "C" is a true and correct copy
of resolutions adopted by the Board of Directors of EAB with respect to
the authorization of ___________ to take such actions and enter into
such agreements as are necessary to enter into the Purchase Agreement;
said resolutions have not been amended, modified, annulled or revoked
and are in full force and effect.
6. Attached hereto as Exhibit "D" is a Good Standing
Certificate issued by the New York Secretary of State's office as of
__________ __, 199_.
7. EAB has performed all obligations and satisfied all
conditions on its part to be performed or satisfied under the Purchase
Agreement on or prior to the Closing Date and all of the
representations and warranties of the Seller under the Purchase
Agreement are true and correct as of the date hereof and as of the
Closing Date, and no event has occurred which, with notice or passage
of time, or both, would constitute a default under the Purchase
Agreement.
All capitalized terms used herein and not otherwise defined shall have the
meanings set forth in the Purchase Agreement.
IN WITNESS WHEREOF, I have hereunto signed my name.
Dated: ______________, 1998
EAB Mortgage Company, Inc.
By:_________________________
Title:______________________
-2-
I, ___________________, Secretary of EAB Mortgage Company, Inc., a New
York corporation, hereby certify that _________________ is the duly elected,
qualified and acting Senior Vice President and Assistant Secretary of EAB
Mortgage Company, Inc. and that the signature appearing on the preceding page is
her genuine signature.
IN WITNESS WHEREOF, I have hereunto signed my name.
Dated:__________ __, 1998
EAB Mortgage Company, Inc.
By:___________________________
Title: Secretary
-3-
[OPINION TO BE REVISED IN ACCORDANCE WITH
GENERAL COUNSEL'S FORM OF OPINION LETTER]
Exhibit D
[OPINION OF SELLER'S IN-HOUSE COUNSEL
PURSUANT TO SECTION 10(b)(iv)]
__________ __, 1998
ABN AMRO Mortgage Corporation
000 Xxxx Xxxxxxx Xxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxxxxx 00000
Re: ABN AMRO Mortgage Corporation Purchase of Mortgage Loans
Ladies and Gentlemen:
As General Counsel to EAB Mortgage Company, Inc., a New York
corporation ("Seller"), I and attorneys working under my supervision have acted
as counsel to Seller in connection with the sale of Mortgage Loans by Seller to
ABN AMRO Mortgage Corporation (the "Purchaser") pursuant to a Mortgage Loan
Purchase Agreement, dated as of December 23, 1998 (the "Purchase Agreement"),
between the Purchaser and Seller. This opinion is being delivered to the
Purchaser pursuant to Section 10(b)(iv) of the Purchase Agreement. All
capitalized terms not otherwise defined herein have the meanings given them in
the Purchase Agreement.
In rendering the opinions set forth below, we have examined and relied
upon originals or copies, certified or otherwise identified to our satisfaction,
of the charter and by-laws of Seller, the Purchase Agreement and such corporate
records, agreements or other instruments of Seller, and such certificates,
records and other documents, agreements and instruments, including, among other
things, certain documents delivered on the Closing Date, as we have deemed
necessary and proper as the basis for our opinions. In connection with such
examination, we have assumed the genuineness of all signatures, the authenticity
of all documents, agreements and instruments submitted to us as originals, the
conformity to original documents, agreements and instruments of all documents,
agreements and instruments submitted to us as copies or specimens, the
authenticity of the originals of such documents, agreements and instruments
submitted to us as copies or specimens, the conformity to executed original
documents of all documents submitted to us in draft and the
ABN AMRO Mortgage Corp.
__________ __, 1998
Page 2
accuracy of the matters set forth in the documents we reviewed. We have also
assumed that all documents, agreements and instruments have been duly
authorized, executed and delivered by all parties thereto. As to any facts
material to such opinions that we did not independently establish or verify, we
have relied upon statements and representations of officers and other
representatives of Seller as we have deemed necessary and proper as the basis
for our opinions, including, among other things, the representations and
warranties of Seller in the Purchase Agreement.
Based upon the foregoing, I am of the opinion that:
1. Seller is a corporation, duly organized, validly existing and in
good standing under the laws of the State of New York and either is not required
to be qualified to do business under the laws of any states where such
qualification is necessary to transact the business contemplated by the Purchase
Agreement, or is qualified to do business under the laws of any states where
such qualification is necessary to transact the business contemplated by the
Purchase Agreement, or the State of [_________________], and Seller is duly
authorized and has full corporate power and authority to transact the business
contemplated by the Purchase Agreement.
2. The Purchase Agreement has been duly authorized, executed and
delivered by Seller and is a legal, valid and binding obligation of and is
enforceable against Seller in accordance with its terms, except that the
enforceability thereof may be subject to (A) bankruptcy, insolvency,
receivership, conservatorship, reorganization, moratorium or other laws, now or
hereafter in effect, relating to creditors' rights generally or the right of
creditors of a New York commercial bank, (B) general principles of equity
(regardless of whether enforcement is sought in a proceeding in equity or at
law) and (C) limitations of public policy under applicable securities laws as to
rights of indemnity and contribution under the Purchase Agreement.
3. No consent, approval, authorization or order of any court or
supervisory, regulatory, administrative or governmental agency or body is
required for the execution, delivery and performance by Seller of or compliance
by Seller with the Purchase Agreement, the sale of the Mortgage Loans or the
consummation of the transactions contemplated by the Purchase Agreement.
4. Neither the execution and delivery by Seller of the Purchase
Agreement, nor the consummation by Seller of the transactions contemplated
therein, nor the compliance by Seller with the provisions thereof, will conflict
with or result in a breach of any of the terms,
ABN AMRO Mortgage Corp.
__________ __, 1998
Page 1
conditions or provisions of Seller's charter or by-laws or board or
shareholder's resolutions, or any agreement or instrument to which Seller is now
a party or by which it is bound, or constitute a default or result in an
acceleration under any of the foregoing, or result in the violation of any law,
rule, regulation, order, judgment or decree to which Seller or its property is
subject, which, in any of the above cases, would materially and adversely affect
Seller's ability to perform its obligations under the Purchase Agreement.
5. There is not an action, suit, proceeding or investigation pending,
or, to the best of my knowledge, threatened against Seller which, either in any
one instance or in the aggregate, would draw into question the validity of the
Purchase Agreement or the Mortgage Loans or of any action taken or to be taken
in connection with the obligations of Seller contemplated therein, or which
would be likely to materially impair the ability of Seller to perform under the
terms of the Purchase Agreement.
The Opinions expressed herein are limited to matters of federal and New
York law and do not purport to cover any matters as to which laws of any other
jurisdiction are applicable. Except as expressly provided herein, this opinion
is being furnished to you solely for your benefit in connection with the
purchase of the Mortgage Loans, and it is not to be used, circulated, quoted or
otherwise referred to for any purpose without my express written consent.
Sincerely,
EAB Mortgage Company, Inc.
By: ____________________
Title: General Counsel
