November 24, 1998
Centex Credit Corporation d/b/a
Centex Home Equity Corporation
0000 Xxxxx Xxxxxxx
Xxxxxx, XX 00000
Policy No. 50740-N
With Respect To
Centex Home Equity Loan Trust 1998-4
Centex Home Equity Pass-Through Certificates
Series 1998-4
Ladies and Gentlemen:
This letter will confirm the agreement of Centex Credit Corporation d/b/a
Centex Home Equity Corporation (the "Company") and Financial Security Assurance
Inc. ("Financial Security") that the following nonrefundable payments are to be
made at, in connection with, and subject to, the closing of the above-described
transaction and in consideration of the issuance by Financial Security of its
Financial Guaranty Insurance Policy (the "Policy") in respect thereof. The
amounts payable hereunder shall be nonrefundable for any reason whatsoever,
including the lack of any payment under the Policy or any other circumstances
relating to Centex Home Equity Loan Trust 1998-4 Centex Home Equity Pass-Through
Certificates, Series 1998-4 (the "Securities") or provision being made for
payments of the Securities prior to maturity.
The payments payable pursuant to the terms hereof (except as otherwise
noted) shall constitute the "Premium" referred to in that certain Insurance and
Indemnity Agreement dated as of November 24, 1998 (the "Insurance Agreement")
among Financial Security, CHEC Asset Receivable Corporation and the Company
relating to the Pooling and Servicing Agreement dated as of November 1, 1998
among the Company, Norwest Bank Minnesota, National Association, as trustee and
CHEC Asset Receivable Coroporation as depositor (the "Pooling and Servicing
Agreement"). This Letter is the Premium Letter referred to in the Insurance
Agreement. The obligations of the Company hereunder constitute an obligation of
the Company under the Insurance Agreement.
EXPECTED CLOSING DATE: November 24, 1998
AMOUNTS PAYABLE AT CLOSING:
Type of Payment Amount Payee Re:
Federal Funds Wire $7,832.13 Financial Security Initial Premium
Federal Funds Wire $27,239.75 Financial Security Diligence Expenses
Federal Funds Wire $ 4,000.00 Financial Security Accounting Fees
Federal Funds Wire $31,250.00 Financial Security Legal Fees and
---------- Disbursments
Total $70,321.88
The amount due at the closing shall include the Premium payable for
the period from the Closing date through and including December 28, 1998. The
Premium payable pursuant hereto shall be payable pursuant to Section 7.03 of the
Pooling and Servicing Agreement, monthly in advance on each Payment Date (as
defined in the Pooling and Servicing Agreement) and the payment on each such
Payment Date shall be in an amount equal to one-twelfth of 0.17% of the sum of
the Class Principal Balances for the Class A-1 Certificates and the Class A-2
Certificates on the immediately preceding Payment Date (after giving effect to
distributions of principal made on such date) or, in the case of the first
Payment Date, the Closing Date.
Unless another account is designated to you in writing by the
president or a Managing Director of Financial Security, Federal funds wire
transfers to Financial Security should be made with the following details
specifically stated on the wire instructions:
Bank: The Bank of New York
ABA Number 000000000
For the Account of: Financial Security Assurance Inc.
Account Number: 8900297263
Policy Number: 50740-N
Sincerely,
FINANCIAL SECURITY ASSURANCE INC.
By:___________________________
Title: Authorized Officer
Agreed and accepted as of the date first above written:
Centex Credit Corporation d/b/a
Centex Home Equity Corporation
By:________________________
Title:
