Exhibit 99.1
MORTGAGE LOAN PURCHASE AGREEMENT
between
XXXXXXX XXXXX MORTGAGE LENDING, INC.
as Seller
and
XXXXXXX XXXXX MORTGAGE INVESTORS, INC.
as Purchaser
Dated as of
November 15, 2005
TABLE OF CONTENTS
Page
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SECTION 1. DEFINITIONS................................................ 1
SECTION 2. PURCHASE AND SALE OF THE MORTGAGE LOANS AND RELATED
RIGHTS..................................................... 3
SECTION 3. MORTGAGE LOAN SCHEDULES.................................... 4
SECTION 4. MORTGAGE LOAN TRANSFER..................................... 4
SECTION 5. EXAMINATION OF MORTGAGE FILES.............................. 5
SECTION 6. RECORDATION OF ASSIGNMENTS OF MORTGAGE..................... 6
SECTION 7. REPRESENTATIONS AND WARRANTIES OF SELLER CONCERNING THE
MORTGAGE LOANS............................................. 8
SECTION 8. REPRESENTATIONS AND WARRANTIES CONCERNING THE SELLER....... 11
SECTION 9. REPRESENTATIONS AND WARRANTIES CONCERNING THE PURCHASER.... 12
SECTION 10. CONDITIONS TO CLOSING...................................... 13
SECTION 11. FEES AND EXPENSES.......................................... 15
SECTION 12. ACCOUNTANTS' LETTERS....................................... 15
SECTION 13. INDEMNIFICATION............................................ 16
SECTION 14. NOTICES.................................................... 18
SECTION 15. TRANSFER OF MORTGAGE LOANS................................. 18
SECTION 16. TERMINATION................................................ 20
SECTION 17. REPRESENTATIONS, WARRANTIES AND AGREEMENTS TO SURVIVE
DELIVERY................................................... 20
SECTION 18. MANDATORY DELIVERY; GRANT OF SECURITY INTEREST............. 20
SECTION 19. SEVERABILITY............................................... 21
SECTION 20. COUNTERPARTS............................................... 21
SECTION 21. AMENDMENT.................................................. 21
SECTION 22. GOVERNING LAW.............................................. 21
SECTION 23. FURTHER ASSURANCES......................................... 21
SECTION 24. SUCCESSORS AND ASSIGNS..................................... 21
SECTION 25. THE SELLER................................................. 22
SECTION 26. ENTIRE AGREEMENT........................................... 22
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SECTION 27. NO PARTNERSHIP............................................. 22
EXHIBITS AND SCHEDULE TO
MORTGAGE LOAN PURCHASE AGREEMENT
Exhibit 1 Contents of Mortgage File
Exhibit 2 Contents of Final Mortgage File
Exhibit 3 Mortgage Loan Schedule Information
Exhibit 4 Seller's Information
Exhibit 5 Purchaser's Information
Exhibit 6 Schedule of Lost Notes
Exhibit 7 S&P Appendix
ii
MORTGAGE LOAN PURCHASE AGREEMENT
MORTGAGE LOAN PURCHASE AGREEMENT, dated as of November 15, 2005, as
amended and supplemented by any and all amendments hereto (collectively, the
"Agreement"), by and between XXXXXXX XXXXX MORTGAGE LENDING, INC., a Delaware
corporation (the "Seller"), and XXXXXXX XXXXX MORTGAGE INVESTORS, INC., a
Delaware corporation (the "Purchaser").
Upon the terms and subject to the conditions of this Agreement, the
Seller agrees to sell, and the Purchaser agrees to purchase, certain first lien,
fixed-rate and adjustable-rate mortgage loans secured by one- to four-family
residences, individual condominiums, co-op units and units in planned unit
developments (collectively, the "Mortgage Loans") as described herein. The
Purchaser intends to deposit the Mortgage Loans into a trust fund (the "Trust
Fund") and create Mortgage Pass-Through Certificates, MLMI Series 2005-A8 (the
"Certificates"), under a pooling and servicing agreement, to be dated as of
October 1, 2005 (the "Pooling and Servicing Agreement"), between the Purchaser,
as seller, Wachovia Bank, National Association, as trustee (the "Trustee") and
Xxxxx Fargo Bank, N.A., as master servicer and securities administrator (the
"Master Servicer" and "Securities Administrator").
The Purchaser has filed with the Securities and Exchange Commission
(the "Commission") a registration statement on Form S-3 (Number 333-127233)
relating to its Mortgage Pass-Through Certificates and the offering of certain
series thereof (including certain classes of the Certificates) from time to time
in accordance with Rule 415 under the Securities Act of 1933, as amended, and
the rules and regulations of the Commission promulgated thereunder (the
"Securities Act"). Such registration statement, when it became effective under
the Securities Act, and the prospectus relating to the public offering of
certain classes of the Certificates by the Purchaser (the "Public Offering"), as
from time to time each is amended or supplemented pursuant to the Securities Act
or otherwise, are referred to herein as the "Registration Statement" and the
"Prospectus," respectively. The "Prospectus Supplement" shall mean that
supplement, dated November 11, 2005 to the Prospectus, dated August 26, 2005,
relating to certain classes of the Certificates. With respect to the Public
Offering of certain classes of the Certificates, the Purchaser and Xxxxxxx
Lynch, Pierce, Xxxxxx & Xxxxx Incorporated ("Xxxxxxx Xxxxx") have entered into a
terms agreement dated as of November 10, 2005 to an underwriting agreement dated
February 28, 2003, between the Purchaser and Xxxxxxx Xxxxx (together, the
"Underwriting Agreement").
Now, therefore, in consideration of the premises and the mutual
agreements set forth herein, the parties hereto agree as follows:
Section 1. Definitions.
Certain terms are defined herein. Capitalized terms used herein but
not defined herein shall have the meanings specified in the Pooling and
Servicing Agreement. The following other terms are defined as follows:
Closing Date: November 15, 2005.
Cut-off Date: October 1, 2005.
Cut-off Date Balance: $1,012,984,581.
Deleted Mortgage Loan: A Mortgage Loan replaced or to be replaced by a
Substitute Mortgage Loan.
Due Date: With respect to each Mortgage Loan, the first day in each
month.
Master Servicer: Xxxxx Fargo Bank, X.X.
Xxxxxxx Xxxxx: Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx Incorporated.
Moody's: Xxxxx'x Investors Service, Inc., or its successors in
interest.
Mortgage: The mortgage or deed of trust creating a first lien on an
interest in real property securing a Mortgage Note.
Mortgage File: The items referred to in Exhibit 1 and Exhibit 2
pertaining to a particular Mortgage Loan and any additional documents required
to be added to such documents pursuant to this Agreement.
Mortgage Interest Rate: The annual rate of interest borne by a
Mortgage Note as stated therein.
Mortgagor: The obligor(s) on a Mortgage Note.
Net Rate: For each Mortgage Loan, the Mortgage Interest Rate for such
Mortgage Loan less the Master Servicing Fee Rate and the Trustee Fee Rate.
Offered Certificates: Shall mean the Class A-1A, Class X-0X, Xxxxx
X-0X0, Xxxxx X-0X0, Class A-1B4, Class A-1C1, Class A-1C2, Class A-2A, Class
A-2B1, Class A-2B2, Class A-3A1, Class A-3A2, Class A-3A3, Class M-1, Class M-2,
Class B-1 and Class B-2 Certificates issued pursuant to the Pooling and
Servicing Agreement.
Opinion of Counsel: A written opinion of counsel, who may be counsel
for the Seller or the Purchaser, reasonably acceptable to the Trustee.
Person: Any legal person, including any individual, corporation,
partnership, joint venture, association, joint stock company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.
Purchase Price: With respect to any Mortgage Loan required to be
purchased by the Seller pursuant to the applicable provisions of this Agreement,
an amount equal to the sum of (i) 100% of the principal remaining unpaid on such
Mortgage Loan as of the date of purchase (including if a foreclosure has already
occurred, the principal balance of the related Mortgage Loan at the time the
Mortgaged Property was acquired), and (ii) accrued and unpaid interest thereon
at the Mortgage Interest Rate through and including the last day of the month of
purchase (iii) any costs and damages incurred by the Trust in connection with
any violation by such Mortgage Loan of any predatory or abusive-lending law.
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Rating Agencies: S&P and Moody's, each a "Rating Agency."
S&P: Standard & Poor's, a division of The XxXxxx-Xxxx Companies, Inc.,
or its successors in interest.
Securities Act: The Securities Act of 1933, as amended.
Substitute Mortgage Loan: A mortgage loan substituted for a Deleted
Mortgage Loan which must meet on the date of such substitution the requirements
stated herein and in the Pooling and Servicing Agreement; upon such
substitution, such mortgage loan shall be a "Mortgage Loan" hereunder.
Value: The value of the Mortgaged Property at the time of origination
of the related Mortgage Loan, such value being the lesser of (i) the value of
such property set forth in an appraisal accepted by the Originator or (ii) the
sales price of such property at the time of origination.
Section 2. Purchase and Sale of the Mortgage Loans and Related Rights.
(a) Upon satisfaction of the conditions set forth in Section 10
hereof, the Seller agrees to sell, and the Purchaser agrees to purchase Mortgage
Loans having an aggregate Cut-off Date Balance of $1,012,984,581.
(b) The closing for the purchase and sale of the Mortgage Loans and
the closing for the issuance of the Certificates will take place on the Closing
Date at the office of the Purchaser's counsel in New York, New York or such
other place as the parties shall agree.
(c) Upon the satisfaction of the conditions set forth in Section 10
hereof, on the Closing Date, in consideration of the purchase of the Mortgage
Loans, the Purchaser shall (i) pay to the Seller an amount equal to the net sale
proceeds of the Offered Certificates plus accrued interest (the "Purchase
Price") in immediately available funds by wire transfer to such account or
accounts as shall be designated by the Seller and (ii) deliver to the Seller the
Class B.
(d) In addition to the foregoing, on the Closing Date the Seller
assigns to the Purchaser without recourse all of its right, title and interest
in (1) the Master Mortgage Loan Purchase and Servicing Agreement, dated as of
April 1, 2003, between Xxxxxxx Xxxxx Mortgages Holdings Inc. ("MLMH"), Terwin
Advisors LLC ("Terwin") and GreenPoint Mortgage Funding, Inc. ("GreenPoint"), as
amended by Amendment No. 1, dated as of August 20, 2003 among MLMH, Terwin and
GreenPoint, (2) the Assignment, Assumption and Recognition Agreement, dated as
of November 15, 2005, among the Seller, the Purchaser and GreenPoint, (3) the
Mortgage Loan Purchase and Interim Servicing Agreement, dated as of June 24,
2005, between the Seller and Ameriquest Mortgage Company ("Ameriquest") and the
Bring-Down Letter related thereto and (4) the Mortgage Loan Flow Purchase, Sale
& Servicing Agreement, dated as of March 27, 2001, among Xxxxxxx Xxxxx Mortgage
Capital Inc. ("MLMC"), Cendant Mortgage Corporation and Xxxxxx'x Gate
Residential Mortgage Trust, formerly known as Cendant Residential Mortgage
Trust, and (5) the Assignment, Assumption and Recognition Agreement, dated as of
November 15, 2005, among the Seller, the Purchaser and PHH Mortgage Corporation,
formerly known as Cendant Mortgage Corporation ("PHH").
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Section 3. Mortgage Loan Schedules.
The Seller agrees to provide to the Purchaser as of the date hereof a
preliminary listing of the Mortgage Loans (the "Preliminary Mortgage Loan
Schedule") setting forth the information listed on Exhibit 3 to this Agreement
with respect to each of the Mortgage Loans being sold by the Seller. If there
are changes to the Preliminary Mortgage Loan Schedule, the Seller shall provide
to the Purchaser as of the Closing Date a final schedule (the "Final Mortgage
Loan Schedule") setting forth the information listed on Exhibit 3 to this
Agreement with respect to each of the Mortgage Loans being sold by the Seller to
the Purchaser. The Final Mortgage Loan Schedule shall be delivered to the
Purchaser on the Closing Date, shall be attached to an amendment to this
Agreement to be executed on the Closing Date by the parties hereto and shall be
in form and substance mutually agreed to by the Seller and the Purchaser (the
"Amendment"). If there are no changes to the Preliminary Mortgage Loan Schedule,
the Preliminary Mortgage Loan Schedule shall be the Final Mortgage Loan Schedule
for all purposes hereof.
Section 4. Mortgage Loan Transfer.
(a) The Purchaser will be entitled to all scheduled payments of
principal and interest on the Mortgage Loans due after the Cut-off Date
(regardless of when actually collected) and all payments thereof other than
scheduled principal and interest received after the Cut-off Date. The Seller
will be entitled to all scheduled payments of principal and interest on the
Mortgage Loans due on or before the Cut-off Date (including payments collected
after the Cut-off Date) and all payments thereof other than scheduled principal
and interest on the Mortgage Loans received on or before the Cut-off Date. Such
principal amounts and any interest thereon belonging to the Seller as described
above will not be included in the aggregate outstanding principal balance of the
Mortgage Loans as of the Cut-off Date as set forth on the Final Mortgage Loan
Schedule.
(b) Pursuant to various conveyancing documents to be executed on the
Closing Date and pursuant to the Pooling and Servicing Agreement, the Purchaser
will assign on the Closing Date all of its right, title and interest in and to
the Mortgage Loans to the Trustee for the benefit of the Certificateholders. In
connection with the transfer and assignment of the Mortgage Loans, the Seller
has delivered or will deliver or cause to be delivered to the Trustee by the
Closing Date or such later date as is agreed to by the Purchaser and the Seller
(each of the Closing Date and such later date is referred to as a "Mortgage File
Delivery Date"), the items of each Mortgage File, provided, however, that in
lieu of the foregoing, the Seller may deliver the following documents, under the
circumstances set forth below: (x) in lieu of the original Mortgage, assignments
to the Trustee or intervening assignments thereof which have been delivered, are
being delivered or will upon receipt of recording information relating to the
Mortgage required to be included thereon, be delivered to recording offices for
recording and have not been returned in time to permit their delivery as
specified above, the Seller may deliver a true copy thereof with a certification
by the Seller or the Originator, on the face of such copy, substantially as
follows: "Certified to be a true and correct copy of the original, which has
been transmitted for recording;" (y) in lieu of the Mortgage, assignments to the
Trustee or intervening assignments thereof, if the applicable jurisdiction
retains the originals of such documents or if the originals are lost (in each
case, as evidenced by a certification from the Seller to such effect), the
Seller may deliver photocopies of such documents containing an original
certification by the judicial or other governmental authority of the
jurisdiction where such documents were recorded;
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and (z) in lieu of the Mortgage Notes relating to the Mortgage Loans, each
identified in the list delivered by the Purchaser to the Trustee on the Closing
Date and attached hereto as Exhibit 6 the Seller may deliver lost note
affidavits and indemnities of the Seller; and provided further, however, that in
the case of Mortgage Loans which have been prepaid in full after the Cut-off
Date and prior to the Closing Date, the Seller, in lieu of delivering the above
documents, may deliver to the Trustee a certification by the Seller to such
effect. The Seller shall deliver such original documents (including any original
documents as to which certified copies had previously been delivered) or such
certified copies to the Trustee promptly after they are received. The Seller
shall cause the Mortgage and intervening assignments, if any, and the assignment
of the Mortgage to be recorded not later than 180 days after the Closing Date,
or, in lieu of such assignments, shall provide an Opinion of Counsel pursuant to
Section 6(a) hereof to the effect that the recordation of such assignment is not
necessary to protect the Trustee's interest in the related Mortgage Loan. Upon
the request of the Purchaser, the Seller will assist the Purchaser in effecting
the assignment referred to above.
(c) The Seller and the Purchaser acknowledge hereunder that all of the
Mortgage Loans and the related servicing will ultimately be assigned to Wachovia
Bank, National Association, as Trustee for the Certificateholders, on the date
hereof.
Section 5. Examination of Mortgage Files.
(a) On or before the Mortgage File Delivery Date, the Seller will have
made the Mortgage Files available to the Purchaser or its agent for examination
which may be at the offices of the Trustee or the Seller and/or the Seller's
custodian. The fact that the Purchaser or its agent has conducted or has failed
to conduct any partial or complete examination of the Mortgage Files shall not
affect the Purchaser's rights to demand cure, repurchase, substitution or other
relief as provided in this Agreement. In furtherance of the foregoing, the
Seller shall make the Mortgage Files available to the Purchaser or its agent
from time to time so as to permit the Purchaser to confirm the Seller's
compliance with the delivery and recordation requirements of this Agreement and
the Pooling and Servicing Agreement. In addition, upon request of the Purchaser,
the Seller agrees to provide to the Purchaser, Xxxxxxx Xxxxx and to any
investors or prospective investors in the Certificates information regarding the
Mortgage Loans and their servicing, to make the Mortgage Files available to the
Purchaser, Xxxxxxx Xxxxx and to such investors or prospective investors (which
may be at the offices of the Seller and/or the Seller's custodian) and to make
available personnel knowledgeable about the Mortgage Loans for discussions with
the Purchaser, Xxxxxxx Xxxxx and such investors or prospective investors, upon
reasonable request during regular business hours, sufficient to permit the
Purchaser, Xxxxxxx Xxxxx and such investors or potential investors to conduct
such due diligence as any such party reasonably believes is appropriate.
(d) Pursuant to the Pooling and Servicing Agreement, on the Closing
Date the Trustee, for the benefit of the Certificateholders, will review items
of the Mortgage Files as set forth on Exhibit 1 and will deliver to the Seller a
certification in the form attached as Exhibit One to the Custodial Agreement.
(e) Pursuant to the Pooling and Servicing Agreement, the Trustee will
review the Mortgage Files within 180 days of the Closing Date and will deliver
to the Purchaser a final certification substantially in the form of Exhibit Two
to the Custodial Agreement. If the Trustee
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is unable to deliver a final certification with respect to the items listed in
Exhibit 2 due to any document that is missing, has not been executed, is
unrelated, determined on the basis of the Mortgagor name, original principal
balance and loan number, to the Mortgage Loans identified in the Final Mortgage
Loan Schedule (a "Material Defect"), the Trustee shall notify the Seller of such
Material Defect. The Seller shall correct or cure any such Material Defect
within 90 days from the date of notice from the Trustee of the Material Defect
and if the Seller does not correct or cure such Material Defect within such
period and such defect materially and adversely affects the interests of the
Certificateholders in the related Mortgage Loan, the Seller will, in accordance
with the terms of the Pooling and Servicing Agreement, within 90 days of the
date of notice, provide the Trustee with a Substitute Mortgage Loan (if within
two years of the Closing Date) or purchase the related Mortgage Loan at the
applicable Purchase Price; provided, however, that if such defect relates solely
to the inability of the Seller to deliver the original security instrument or
intervening assignments thereof, or a certified copy because the originals of
such documents, or a certified copy, have not been returned by the applicable
jurisdiction, the Seller shall not be required to purchase such Mortgage Loan if
the Seller delivers such original documents or certified copy promptly upon
receipt, but in no event later than 360 days after the Closing Date. The
foregoing repurchase obligation shall not apply in the event that the Seller
cannot deliver such original or copy of any document submitted for recording to
the appropriate recording office in the applicable jurisdiction because such
document has not been returned by such office; provided that the Seller shall
instead deliver a recording receipt of such recording office or, if such receipt
is not available, a certificate of the Seller confirming that such documents
have been accepted for recording, and delivery to the Trustee shall be effected
by the Seller within thirty days of its receipt of the original recorded
document.
(f) At the time of any substitution, the Seller shall deliver or cause
to be delivered the Substitute Mortgage Loan, the related Mortgage File and any
other documents and payments required to be delivered in connection with a
substitution pursuant to the Pooling and Servicing Agreement. At the time of any
purchase or substitution, the Trustee shall (i) assign to the Seller and cause
the Trustee to release the documents (including, but not limited to, the
Mortgage, Mortgage Note and other contents of the Mortgage File) in the
possession of the Trustee relating to the Deleted Mortgage Loan and (ii) execute
and deliver such instruments of transfer or assignment, in each case without
recourse, as shall be necessary to vest in the Seller title to such Deleted
Mortgage Loan.
Section 6. Recordation of Assignments of Mortgage.
(a) The Seller will, promptly after the Closing Date, cause each
Mortgage and each assignment of Mortgage from the Seller to the Trustee, and all
unrecorded intervening assignments, if any, delivered on or prior to the Closing
Date, to be recorded in all recording offices in the jurisdictions where the
related Mortgaged Properties are located; provided, however, the Seller need not
cause to be recorded any assignment which relates to a Mortgage Loan in any
jurisdiction under the laws of which, as evidenced by an Opinion of Counsel, the
recordation of such assignment is not necessary to protect the Trustee's
interest in the related Mortgage Loan; provided, however, notwithstanding the
delivery of any Opinion of Counsel, each assignment of Mortgage shall be
submitted for recording by the Seller in the manner described above, at no
expense to the Trust Fund or Trustee, upon the earliest to occur of (i)
reasonable direction by the Holders of Certificates evidencing, in the
aggregate, not less than 25% of the Voting Rights, (ii) the occurrence of a
Master Servicer Event of Termination (upon
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instruction of the Seller), (iii) the occurrence of a bankruptcy, insolvency or
foreclosure relating to the Seller, (iv) the occurrence of a servicing transfer
as described in Section 7.02 of the Pooling and Servicing Agreement or (v) with
respect to any one assignment of Mortgage, the occurrence of a bankruptcy,
insolvency or foreclosure relating to the Mortgagor under the related Mortgage.
While each such Mortgage or assignment is being recorded, if
necessary, the Seller shall leave or cause to be left with the Trustee a
certified copy of such Mortgage or assignment. In the event that, within 180
days of the Closing Date, the Trustee has not provided an Opinion of Counsel as
described above or received evidence of recording with respect to each Mortgage
Loan delivered to the Purchaser pursuant to the terms hereof or as set forth
above, the failure to provide evidence of recording or such Opinion of Counsel
shall be considered a Material Defect, and the provisions of Section 5(c) and
(d) shall apply. All customary recording fees and reasonable expenses relating
to the recordation of the assignments of mortgage to the Trustee or the Opinion
of Counsel, as the case may be, shall be borne by the Seller.
(g) It is the express intent of the parties hereto that the conveyance
of the Mortgage Loans by the Seller to the Purchaser, as contemplated by this
Agreement be, and be treated as, a sale. It is, further, not the intention of
the parties that such conveyance be deemed a pledge of the Mortgage Loans by the
Seller to the Purchaser to secure a debt or other obligation of the Seller.
However, in the event that, notwithstanding the intent of the parties, the
Mortgage Loans are held by a court of competent jurisdiction to continue to be
property of the Seller, then (i) this Agreement shall also be deemed to be a
security agreement within the meaning of Articles 8 and 9 of the applicable
Uniform Commercial Code; (ii) the transfer of the Mortgage Loans provided for
herein shall be deemed to be a grant by the Seller to the Purchaser of a
security interest in all of the Seller's right, title and interest in and to the
Mortgage Loans and all amounts payable to the holders of the Mortgage Loans in
accordance with the terms thereof and all proceeds of the conversion, voluntary
or involuntary, of the foregoing into cash, instruments, securities or other
property, to the extent the Purchaser would otherwise be entitled to own such
Mortgage Loans and proceeds pursuant to Section 4 hereof, including all amounts,
other than investment earnings, from time to time held or invested in any
accounts created pursuant to the Pooling and Servicing Agreement, whether in the
form of cash, instruments, securities or other property; (iii) the possession by
the Purchaser or the Trustee of Mortgage Notes and such other items of property
as constitute instruments, money, negotiable documents or chattel paper shall be
deemed to be "possession by the secured party" for purposes of perfecting the
security interest pursuant to Section 9-305 (or comparable provision) of the
applicable Uniform Commercial Code; and (iv) notifications to persons holding
such property, and acknowledgments, receipts or confirmations from persons
holding such property, shall be deemed notifications to, or acknowledgments,
receipts or confirmations from, financial intermediaries, bailees or agents (as
applicable) of the Purchaser for the purpose of perfecting such security
interest under applicable law. Any assignment of the interest of the Purchaser
pursuant to any provision hereof or pursuant to the Pooling and Servicing
Agreement shall also be deemed to be an assignment of any security interest
created hereby. The Seller and the Purchaser shall, to the extent consistent
with this Agreement, take such actions as may be reasonably necessary to ensure
that, if this Agreement were deemed to create a security interest in the
Mortgage Loans, 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 Pooling and Servicing Agreement.
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Section 7. Representations and Warranties of Seller Concerning the Mortgage
Loans.
The Seller hereby represents and warrants to the Purchaser as of the
Closing Date or such other date as may be specified below with respect to each
Mortgage Loan being sold by it:
(a) the information set forth in the Mortgage Loan Schedule hereto is
true and correct in all material respects;
(b) immediately prior to the transfer to the Purchaser, the Seller was
the sole owner of beneficial title and holder of each Mortgage and Mortgage
Note relating to the Mortgage Loans and is conveying the same free and
clear of any and all liens, claims, encumbrances, participation interests,
equities, pledges, charges or security interests of any nature and the
Seller has full right and authority to sell or assign the same pursuant to
this Agreement;
(c) no selection procedure reasonably believed by the Seller to be
adverse to the interests of the Certificateholders was utilized in
selecting the Mortgage Loans;
(d) each Mortgage Loan constitutes a "qualified mortgage" under
Section 860G(a)(3)(A) of the Code and Treasury Regulation Section
1.860G-2(a)(1);
(e) no Mortgage Loan is in foreclosure;
(f) no Mortgage Loan provides for interest other than at either (i) a
single fixed rate in effect throughout the term of the Mortgage Loan or
(ii) a "variable rate" (within the meaning of Treas. Reg. Section
1.860G-1(a)(3)) in effect throughout the term of the Mortgage Loan;
(g) the Seller would not, based on the delinquency status of the
Mortgage Loans, institute foreclosure proceedings with respect to any of
the Mortgage Loans prior to the next scheduled payment for such Mortgage
Loan;
(h) the information set forth under the caption "The Mortgage
Pool--General" and "--Tabular Characteristics of the Mortgage Pool" in the
Prospectus Supplement is true and correct in all material respects;
(i) as of the Cut-off Date, no Mortgage Loan is more than 30 days past
due. The Seller has not advanced funds, or induced, solicited or knowingly
received any advance of funds from a party other than the owner of the
related Mortgaged Property, directly or indirectly, for the payment of any
amount required by the Mortgage Note or Mortgage;
(j) to the best of the Seller's knowledge, there are no delinquent
taxes, ground rents, water charges, sewer rents, assessments, insurance
premiums, leasehold payments, including assessments payable in future
installments or other outstanding charges affecting the related Mortgaged
Property;
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(k) to the best of the Seller's knowledge, there is no default,
breach, violation or event of 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 of acceleration, and the Seller has not
waived any default, breach, violation or event of acceleration;
(l) to the best of the Seller's knowledge, the Mortgaged Property is
free of damage and waste and there is no proceeding pending for the total
or partial condemnation thereof;
(m) to the best of the Seller's knowledge, the Mortgaged Property is
lawfully occupied under applicable law at time of origination; 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;
(n) all requirements of any federal, state or local law (including
usury, truth in lending, real estate settlement procedures, consumer credit
protection, equal credit opportunity, disclosure or recording, predatory
and abusive lending laws) applicable to the origination and servicing of
such Mortgage Loan have been complied with in all material respects;
(o) to the best of the Seller's knowledge, as of the date of transfer
of the Mortgage Loans, there is no mechanics' lien or claim for work, labor
or material affecting the Mortgaged Property except those which are insured
against by the title insurance policy;
(p) to the best of the Seller's knowledge, 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;
(q) to the best of the Seller's knowledge, as of the date of closing,
the physical property subject to any mortgage is free of material damage
and is in good repair;
(r) at the time of origination, no improvement located on or being
part of the Mortgaged Property was in violation of any applicable zoning
and subdivision laws or ordinances;
(s) each Mortgage Loan is and will be a mortgage loan arising out of
the originator's practice in accordance with the seller/originator's
underwriting guidelines. The seller has no knowledge of any fact that
should have led it to expect at the time of the initial creation of an
interest in the mortgage loan that such mortgage loan would not be paid in
full when due;
(t) each original mortgage has been recorded or is in the process of
being recorded in the appropriate jurisdictions wherein such recordation is
required to perfect the lien thereof for the benefit of the trust;
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(u) the related mortgage file contains each of the documents and
instruments specified;
(v) loans originated are being serviced according to the
seller/servicer guidelines;
(w) the mortgage note and the mortgage have not been impaired, altered
or modified in any material respect, except by a written instrument which
has been recorded or is in the process of being recorded;
(x) a lender's title policy or binder, or other assurance of title
insurance customary in a form acceptable to FNMA or FHLMC was issued at
origination and each policy or binder is valid and remains in full force
and effect;
(y) none of the Mortgage Loans are secured by a leasehold interest;
(z) none of the Mortgage Loans are subject to the Georgia Fair Lending
Act, as amended;
(aa) none of the Mortgage Loans is subject to the Home Ownership and
Equity Protection Act of 1994 or is a "high cost" or "predatory" loan as
defined by applicable local, state and federal predatory and abusive
lending laws; and
(bb) no Mortgage Loan is a High Cost Loan or Covered Loan, as
applicable (as such terms are defined in Appendix E of the then current
Standard & Poor's Glossary For File Format For LEVELS(R) Version 5.6b
Revised (attached hereto as Exhibit 7).
It is understood and agreed that the representations and warranties
set forth in this Section 7 will inure to the benefit of the Purchaser, its
successors and assigns, notwithstanding any restrictive or qualified endorsement
on any Mortgage Note or assignment of Mortgage or the examination of any
Mortgage File. Upon any substitution for a Mortgage Loan, the representations
and warranties set forth above shall be deemed to be made by the Seller as to
any Substitute Mortgage Loan as of the date of substitution.
Upon discovery or receipt of notice by the Seller, the Purchaser or
the Trustee of a breach of any representation or warranty of the Seller set
forth in this Section 7 which materially and adversely affects the value of the
interests of the Purchaser, the Certificateholders or the Trustee in any of the
Mortgage Loans delivered to the Purchaser pursuant to this Agreement, the party
discovering or receiving notice of such breach shall give prompt written notice
to the others. In the case of any such breach of a representation or warranty
set forth in this Section 7, within 90 days from the date of discovery by the
Seller, or the date the Seller is notified by the party discovering or receiving
notice of such breach (whichever occurs earlier), the Seller will (i) cure such
breach in all material respects, (ii) purchase the affected Mortgage Loan at the
applicable Purchase Price or (iii) if within two years of the Closing Date,
substitute a qualifying Substitute Mortgage Loan in exchange for such Mortgage
Loan. The obligations of the Seller to cure, purchase or substitute a qualifying
Substitute Mortgage Loan shall constitute the Purchaser's, the Trustee's and the
Certificateholder's sole and exclusive remedy under this Agreement or otherwise
respecting a breach of representations or warranties hereunder with respect to
the Mortgage Loans, except for the obligation of the Seller to indemnify the
Purchaser
10
for such breach as set forth in and limited by Section 14 hereof. With respect
to the representations and warranties described in the Agreement which are made
to the best of the Seller's knowledge, if it is discovered by any of the
Depositor, the Seller or the Trustee that the substance of such representation
and warranty is inaccurate and such inaccuracy materially and adversely affects
the value of the related Mortgage Loan, then notwithstanding the seller's lack
of knowledge with respect to the substance of such representation and warranty,
such inaccuracy shall be deemed a breach of the applicable representation or
warranty.
Any cause of action against the Seller or relating to or arising out
of a breach by the Seller of any representations and warranties made in this
Section 7 shall accrue as to any Mortgage Loan upon (i) discovery of such breach
by the Seller or notice thereof by the party discovering such breach and (ii)
failure by the Seller to cure such breach, purchase such Mortgage Loan or
substitute a qualifying Substitute Mortgage Loan pursuant to the terms hereof.
Section 8. Representations and Warranties Concerning the Seller.
As of the date hereof and as of the Closing Date, the Seller
represents and warrants to the Purchaser as to itself in the capacity indicated
as follows:
(a) the Seller (i) is a corporation duly organized, validly existing
and in good standing under the laws of the State of Delaware and (ii) is
qualified and in good standing to do business in each jurisdiction where
such qualification is necessary, except where the failure so to qualify
would not reasonably be expected to have a material adverse effect on the
Seller's business as presently conducted or on the Seller's ability to
enter into this Agreement and to consummate the transactions contemplated
hereby;
(b) the Seller has full power to own its property, to carry on its
business as presently conducted and to enter into and perform its
obligations under this Agreement;
(c) the execution and delivery by the Seller of this Agreement have
been duly authorized by all necessary action on the part of the Seller; and
neither the execution and delivery of this Agreement, nor the consummation
of the transactions herein contemplated, nor compliance with the provisions
hereof, will conflict with or result in a breach of, or constitute a
default under, any of the provisions of any law, governmental rule,
regulation, judgment, decree or order binding on the Seller or its
properties or the charter or by-laws of the Seller, except those conflicts,
breaches or defaults which would not reasonably be expected to have a
material adverse effect on the Seller's ability to enter into this
Agreement and to consummate the transactions contemplated hereby;
(d) the execution, delivery and performance by the Seller of this
Agreement and the consummation of the transactions contemplated hereby do
not require the consent or approval of, the giving of notice to, the
registration with, or the taking of any other action in respect of, any
state, federal or other governmental authority or agency, except those
consents, approvals, notices, registrations or other actions as have
already been obtained, given or made and, in connection with the
recordation of the Mortgages, powers of attorney or assignments of
Mortgages not yet completed;
(e) this Agreement has been duly executed and delivered by the Seller
and, assuming due authorization, execution and delivery by the Purchaser,
constitutes a valid
11
and binding obligation of the Seller enforceable against it in accordance
with its terms (subject to applicable bankruptcy and insolvency laws and
other similar laws affecting the enforcement of the rights of creditors
generally);
(f) there are no actions, suits or proceedings pending or, to the
knowledge of the Seller, threatened against the Seller, before or by any
court, administrative agency, arbitrator or governmental body (i) with
respect to any of the transactions contemplated by this Agreement or (ii)
with respect to any other matter which in the judgment of the Seller will
be determined adversely to the Seller and will if determined adversely to
the Seller materially and adversely affect the Seller's ability to perform
its obligations under this Agreement; and the Seller is not in default with
respect to any order of any court, administrative agency, arbitrator or
governmental body so as to materially and adversely affect the transactions
contemplated by this Agreement; and
(g) the Seller's Information (as defined in Section 13(a) hereof) does
not include any untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements made, in light of
the circumstances under which they were made, not misleading.
Section 9.Representations and Warranties Concerning the Purchaser.
As of the date hereof and as of the Closing Date, the Purchaser
represents and warrants to the Seller as follows:
(a) the Purchaser (i) is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware and
(ii) is qualified and in good standing as a foreign corporation to do
business in each jurisdiction where such qualification is necessary, except
where the failure so to qualify would not reasonably be expected to have a
material adverse effect on the Purchaser's business as presently conducted
or on the Purchaser's ability to enter into this Agreement and to
consummate the transactions contemplated hereby;
(h) the Purchaser has full corporate power to own its property, to
carry on its business as presently conducted and to enter into and perform
its obligations under this Agreement;
(i) the execution and delivery by the Purchaser of this Agreement have
been duly authorized by all necessary corporate action on the part of the
Purchaser; and neither the execution and delivery of this Agreement, nor
the consummation of the transactions herein contemplated, nor compliance
with the provisions hereof, will conflict with or result in a breach of, or
constitute a default under, any of the provisions of any law, governmental
rule, regulation, judgment, decree or order binding on the Purchaser or its
properties or the articles of incorporation or by-laws of the Purchaser,
except those conflicts, breaches or defaults which would not reasonably be
expected to have a material adverse effect on the Purchaser's ability to
enter into this Agreement and to consummate the transactions contemplated
hereby;
(j) the execution, delivery and performance by the Purchaser of this
Agreement and the consummation of the transactions contemplated hereby do
not require
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the consent or approval of, the giving of notice to, the registration with,
or the taking of any other action in respect of, any state, federal or
other governmental authority or agency, except those consents, approvals,
notices, registrations or other actions as have already been obtained,
given or made;
(k) this Agreement has been duly executed and delivered by the
Purchaser and, assuming due authorization, execution and delivery by the
Seller, constitutes a valid and binding obligation of the Purchaser
enforceable against it in accordance with its terms (subject to applicable
bankruptcy and insolvency laws and other similar laws affecting the
enforcement of the rights of creditors generally);
(l) there are no actions, suits or proceedings pending or, to the
knowledge of the Purchaser, threatened against the Purchaser, before or by
any court, administrative agency, arbitrator or governmental body (i) with
respect to any of the transactions contemplated by this Agreement or (ii)
with respect to any other matter which in the judgment of the Purchaser
will be determined adversely to the Purchaser and will if determined
adversely to the Purchaser materially and adversely affect the Purchaser's
ability to perform its obligations under this Agreement; and the Purchaser
is not in default with respect to any order of any court, administrative
agency, arbitrator or governmental body so as to materially and adversely
affect the transactions contemplated by this Agreement; and
(m) the Purchaser's Information (as defined in Section 13(b) hereof)
does not include any untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements made, in light of
the circumstances under which they were made, not misleading.
Section 10. Conditions to Closing.
(a) The obligations of the Purchaser under this Agreement will be
subject to the satisfaction, on or prior to the Closing Date, of the
following conditions:
(i) Each of the obligations of the Seller required to be
performed at or prior to the Closing Date pursuant to the terms of this
Agreement shall have been duly performed and complied with in all material
respects; all of the representations and warranties of the Seller under this
Agreement shall be true and correct as of the date or dates specified in all
material respects; and no event shall have occurred which, with notice or the
passage of time, would constitute a default under this Agreement, or the Pooling
and Servicing Agreement; and the Purchaser shall have received certificates to
that effect signed by authorized officers of the Seller.
(ii) The Purchaser shall have received all of the following
closing documents, in such forms as are agreed upon and reasonably acceptable to
the Purchaser, duly executed by all signatories other than the Purchaser as
required pursuant to the respective terms thereof:
(A) If required pursuant to Section 3 hereof, the Amendment
dated as of the Closing Date and any documents referred to therein;
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(B) If required pursuant to Section 3 hereof, the Final
Mortgage Loan Schedule containing the information set forth on Exhibit 3
hereto, one copy to be attached to each counterpart of the Amendment;
(C) The Pooling and Servicing Agreement, in form and
substance reasonably satisfactory to the Trustee and the Purchaser, and all
documents required thereby duly executed by all signatories;
(D) A certificate of an officer of the Seller dated as of
the Closing Date, in a form reasonably acceptable to the Purchaser, and
attached thereto the resolutions of the Seller's authorizing the
transactions contemplated by this Agreement, together with copies of the
charter and by-laws of the Seller;
(E) One or more opinions of counsel from the Seller's
counsel otherwise in form and substance reasonably satisfactory to the
Purchaser, the Trustee and each Rating Agency;
(F) A letter from each of the Rating Agencies giving each
Class of Certificates set forth on Schedule A the rating set forth on
Schedule A; and
(G) Such other documents, certificates (including additional
representations and warranties) and opinions as may be reasonably necessary
to secure the intended ratings from each Rating Agency for the
Certificates.
(iii) The Certificates to be sold to Xxxxxxx Xxxxx pursuant to
the Underwriting Agreement shall have been issued and sold to Xxxxxxx Xxxxx.
(iv) The Seller shall have furnished to the Purchaser such other
certificates of its officers or others and such other documents and opinions of
counsel to evidence fulfillment of the conditions set forth in this Agreement
and the transactions contemplated hereby as the Purchaser and its counsel may
reasonably request.
(n) 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:
(i) 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 in all material respects, and all of
the representations and warranties of the Purchaser under this Agreement shall
be true and correct in all material respects as of the date hereof and as of the
Closing Date, and no event shall have occurred which would constitute a breach
by it of the terms of this Agreement, and the Seller shall have received a
certificate to that effect signed by an authorized officer of the Purchaser.
(ii) The Seller shall have received copies of all of the
following closing documents, in such forms as are agreed upon and reasonably
acceptable to the Seller, duly executed by all signatories other than the Seller
as required pursuant to the respective terms thereof:
14
(A) If required pursuant to Section 3 hereof, the Amendment
dated as of the Closing Date and any documents referred to therein;
(B) The Pooling and Servicing Agreement, in form and
substance reasonably satisfactory to the Seller, and all documents required
thereby duly executed by all signatories;
(C) A certificate of an officer of the Purchaser dated as of
the Closing Date, in a form reasonably acceptable to the Seller, and
attached thereto the resolutions of the Purchaser authorizing the
transactions contemplated by this Agreement and the Pooling and Servicing
Agreement, together with copies of the Purchaser's articles of
incorporation, and evidence as to the good standing of the Purchaser dated
as of a recent date;
(D) One or more opinions of counsel from the Purchaser's
counsel in form and substance reasonably satisfactory to the Seller; and
(E) Such other documents, certificates (including additional
representations and warranties) and opinions as may be reasonably necessary
to secure the intended rating from each Rating Agency for the Certificates;
Section 11. Fees and Expenses.
Subject to Section 17 hereof, the Seller shall pay on the Closing
Date or such later date as may be agreed to by the Purchaser (i) the fees and
expenses of the Seller's attorneys and the reasonable fees and expenses of the
Purchaser's attorneys, (ii) the fees and expenses of Deloitte & Touche LLP,
(iii) the filing fee charged by the Commission for the registration of the
Certificates, (iv) the fees and expenses including counsel's fees and expenses
in connection with any "blue sky" and legal investment matters, (v) the fees and
expenses of the Trustee which shall include without limitation the fees and
expenses of the Trustee (and the fees and disbursements of its counsel) with
respect to (A) legal and document review of this Agreement, the Pooling and
Servicing Agreement, the Certificates and related agreements, (B) attendance at
the Closing and (C) review of the Mortgage Loans to be performed by the Trustee,
(vi) the expenses for printing or otherwise reproducing the Certificates, the
Prospectus and the Prospectus Supplement, (vii) the fees and expenses of each
Rating Agency (both initial and ongoing), (viii) the fees and expenses relating
to the preparation and recordation of mortgage assignments (including
intervening assignments, if any and if available, to evidence a complete chain
of title from the originator to the Trustee) from the Seller to the Trustee or
the expenses relating to the Opinion of Counsel referred to in Section 6(a)
hereof, as the case may be, and (ix) Mortgage File due diligence expenses and
other out-of-pocket expenses incurred by the Purchaser in connection with the
purchase of the Mortgage Loans and by Xxxxxxx Xxxxx in connection with the sale
of the Offered Certificates. The Seller additionally agrees to pay directly to
any third party on a timely basis the fees provided for above which are charged
by such third party and which are billed periodically.
Section 12. Accountants' Letters
(a) Deloitte & Touche LLP will review the characteristics of a sample
of the Mortgage Loans described in the Final Mortgage Loan Schedule and
will compare those
15
characteristics to the description of the Mortgage Loans contained in the
Prospectus Supplement under the captions "Summary Information--The Mortgage
Loans" and "The Mortgage Pool--General" and "--Tabular Characteristics of
the Mortgage Pool". The Seller will cooperate with the Purchaser in making
available all information and taking all steps reasonably necessary to
permit such accountants to complete the review and to deliver the letters
required of them under the Underwriting Agreement. Deloitte & Touche LLP
will also confirm certain calculations as set forth under the caption
"Yield, Prepayment and Maturity Considerations" in the Prospectus
Supplement.
(o) To the extent statistical information with respect to the Master
Servicer's servicing portfolio is included in the Prospectus Supplement
under the caption "Servicing of the Mortgage Loans--The Master Servicer," a
letter from the certified public accountant for the Master Servicer will be
delivered to the Purchaser dated the date of the Prospectus Supplement, in
the form previously agreed to by the Seller and the Purchaser, with respect
to such statistical information.
Section 13. Indemnification.
(a) The Seller shall indemnify and hold harmless the Purchaser and its
directors, officers and controlling persons (as defined in Section 15 of
the Securities Act) from and against any loss, claim, damage or liability
or action in respect thereof, to which they or any of them may become
subject, under the Securities Act or otherwise, insofar as such loss,
claim, damage, liability or action arises out of, or is based upon (i) any
untrue statement of a material fact contained in the Seller's Information
as identified in Exhibit 4, the omission to state in the Prospectus
Supplement or Prospectus (or any amendment thereof or supplement thereto
approved by the Seller and in which additional Seller's Information is
identified), in reliance upon and in conformity with Seller's Information a
material fact required to be stated therein or necessary to make the
statements therein in light of the circumstances in which they were made,
not misleading, (ii) any representation or warranty assigned or made by the
Seller in Section 7 or Section 8 hereof being, or alleged to be, untrue or
incorrect, or (iii) any failure by the Seller to perform its obligations
under this Agreement; and the Seller shall reimburse the Purchaser and each
other indemnified party for any legal and other expenses reasonably
incurred by them in connection with investigating or defending or preparing
to defend against any such loss, claim, damage, liability or action.
(p) The Seller shall indemnify and hold harmless the Purchaser, the
Trust Fund and the Trustee against any documented out-of-pocket losses,
penalties, fines, forfeitures, reasonable and necessary legal fees and
related costs, judgments, and other costs and expenses resulting from any
claim, demand, defense or assertion by any third party that results from, a
material breach of the representations and warranties set forth in Section
7 of this Agreement; provided, however, indemnification shall not be
available for any economic losses of the Purchaser due to reinvestment
losses, loss of investment income or any other special, indirect or
consequential losses. The Seller shall indemnify and hold harmless the
Purchaser, the Trust Fund and the Trustee against any losses, penalties,
fines, forfeitures, reasonable and necessary legal fees and related costs,
judgments, and other costs and expenses resulting from any claim, demand,
defense or assertion by any third party in connection with the Georgia Fair
Lending Act; provided,
16
however, indemnification shall not be available for any economic losses of
the Purchaser due to reinvestment losses, loss of investment income or any
other special, indirect or consequential losses.
The foregoing indemnity agreement is in addition to any liability which the
Seller otherwise may have to the Purchaser or any other such indemnified party.
(q) The Purchaser shall indemnify and hold harmless the Seller and its
respective directors, officers and controlling persons (as defined in
Section 15 of the Securities Act) from and against any loss, claim, damage
or liability or action in respect thereof, to which they or any of them may
become subject, under the Securities Act or otherwise, insofar as such
loss, claim, damage, liability or action arises out of, or is based upon
(i) any untrue statement of a material fact contained in the Purchaser's
Information as identified in Exhibit 5, the omission to state in the
Prospectus Supplement or Prospectus (or any amendment thereof or supplement
thereto approved by the Purchaser and in which additional Purchaser's
Information is identified), in reliance upon and in conformity with the
Purchaser's Information, a material fact required to be stated therein or
necessary to make the statements therein in light of the circumstances in
which they were made, not misleading, (ii) any representation or warranty
made by the Purchaser in Section 9 hereof being, or alleged to be, untrue
or incorrect, or (iii) any failure by the Purchaser to perform its
obligations under this Agreement; and the Purchaser shall reimburse the
Seller, and each other indemnified party for any legal and other expenses
reasonably incurred by them in connection with investigating or defending
or preparing to defend any such loss, claim, damage, liability or action.
The foregoing indemnity agreement is in addition to any liability which the
Purchaser otherwise may have to the Seller, or any other such indemnified
party,
(r) Promptly after receipt by an indemnified party under subsection
(a) or (b) above of notice of the commencement of any action, such
indemnified party shall, if a claim in respect thereof is to be made
against the indemnifying party under such subsection, notify each party
against whom indemnification is to be sought in writing of the commencement
thereof (but the failure so to notify an indemnifying party shall not
relieve it from any liability which it may have under this Section 13
except to the extent that it has been prejudiced in any material respect by
such failure or from any liability which it may have otherwise). In case
any such action is brought against any indemnified party, and it notifies
an indemnifying party of the commencement thereof, the indemnifying party
will be entitled to participate therein and, to the extent it may elect by
written notice delivered to the indemnified party promptly (but, in any
event, within 30 days) after receiving the aforesaid notice from such
indemnified party, to assume the defense thereof with counsel reasonably
satisfactory to such indemnified party. Notwithstanding the foregoing, the
indemnified party or parties shall have the right to employ its or their
own counsel in any such case, but the fees and expenses of such counsel
shall be at the expense of such indemnified party or parties unless (i) the
employment of such counsel shall have been authorized in writing by one of
the indemnifying parties in connection with the defense of such action,
(ii) the indemnifying parties shall not have employed counsel to have
charge of the defense of such action within a reasonable time after notice
of commencement of the action, or (iii) such indemnified party or parties
shall have reasonably concluded that there is a conflict of
17
interest between itself or themselves and the indemnifying party in the
conduct of the defense of any claim or that the interests of the
indemnified party or parties are not substantially co-extensive with those
of the indemnifying party (in which case the indemnifying parties shall not
have the right to direct the defense of such action on behalf of the
indemnified party or parties), in any of which events such fees and
expenses shall be borne by the indemnifying parties (provided, however,
that the indemnifying party shall be liable only for the fees and expenses
of one counsel in addition to one local counsel in the jurisdiction
involved. Anything in this subsection to the contrary notwithstanding, an
indemnifying party shall not be liable for any settlement or any claim or
action effected without its written consent; provided, however, that such
consent was not unreasonably withheld.
(s) If the indemnification provided for in paragraphs (a) and (b) of
this Section 13 shall for any reason be unavailable to an indemnified party
in respect of any loss, claim, damage or liability, or any action in
respect thereof, referred to in Section 13, then the indemnifying party
shall in lieu of indemnifying the indemnified party contribute to the
amount paid or payable by such indemnified party as a result of such loss,
claim, damage or liability, or action in respect thereof, in such
proportion as shall be appropriate to reflect the relative benefits
received by the Seller on the one hand and the Purchaser on the other from
the purchase and sale of the Mortgage Loans, the offering of the
Certificates and the other transactions contemplated hereunder. No person
found liable for a fraudulent misrepresentation shall be entitled to
contribution from any person who is not also found liable for such
fraudulent misrepresentation.
(t) The parties hereto agree that reliance by an indemnified party on
any publicly available information or any information or directions
furnished by an indemnifying party shall not constitute negligence, bad
faith or willful misconduct by such indemnified party.
Section 14. Notices.
All demands, notices and communications hereunder shall be in writing
but may be delivered by facsimile transmission subsequently confirmed in
writing. Notices to the Seller shall be directed to Xxxxxxx Xxxxx Mortgage
Lending Inc., 0 Xxxxx Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, (Telecopy:
212-449-6710), and notices to the Purchaser shall be directed to Xxxxxxx Xxxxx
Mortgage Investors, Inc., 0 Xxxxx Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000,
(Telecopy: 212-449-6710), Attention: Xxxxx Xxxxxxx; or to any other address as
may hereafter be furnished by one party to the other party by like notice. Any
such demand, notice or communication hereunder shall be deemed to have been
received on the date received at the premises of the addressee (as evidenced, in
the case of registered or certified mail, by the date noted on the return
receipt) provided that it is received on a business day during normal business
hours and, if received after normal business hours, then it shall be deemed to
be received on the next business day.
Section 15. Transfer of Mortgage Loans.
The Purchaser retains the right to assign the Mortgage Loans and any
or all of its interest under this Agreement to the Trustee without the consent
of the Seller, and, upon such
18
assignment, the Trustee shall succeed to the applicable rights and obligations
of the Purchaser hereunder; provided, however, the Purchaser shall remain
entitled to the benefits set forth in Sections 11, 13 and 17 hereto and as
provided in Section 2(a). Notwithstanding the foregoing, the sole and exclusive
right and remedy of the Trustee with respect to a breach of representation or
warranty of the Seller shall be the purchase or substitution obligations of the
Seller contained in Sections 5 and 7 hereof.
19
Section 16. Termination.
This Agreement may be terminated (a) by the mutual consent of the
parties hereto prior to the Closing Date, (b) by the Purchaser, if the
conditions to the Purchaser's obligation to close set forth under Section 10(a)
hereof are not fulfilled as and when required to be fulfilled or (c) by the
Seller, if the conditions to the Seller's obligation to close set forth under
Section 10(b) hereof are not fulfilled as and when required to be fulfilled. In
the event of termination pursuant to clause (b), the Seller shall pay, and in
the event of termination pursuant to clause (c), the Purchaser shall pay, all
reasonable out-of-pocket expenses incurred by the other in connection with the
transactions contemplated by this Agreement. In the event of a termination
pursuant to clause (a), each party shall be responsible for its own expenses.
Section 17. Representations, Warranties and Agreements to Survive Delivery.
All representations, warranties and agreements contained in this
Agreement, or contained in certificates of officers of the Seller submitted
pursuant hereto, shall remain operative and in full force and effect and shall
survive delivery of the Mortgage Loans to the Purchaser (and by the Purchaser to
the Trustee). Subsequent to the delivery of the Mortgage Loans to the Purchaser,
the Seller's representations and warranties contained herein with respect to the
Mortgage Loans shall be deemed to relate to the Mortgage Loans actually
delivered to the Purchaser and included in the Final Mortgage Loan Schedule and
any Substitute Mortgage Loan and not to those Mortgage Loans deleted from the
Preliminary Mortgage Loan Schedule pursuant to Section 3 hereof prior to the
Closing.
Section 18. Mandatory Delivery; Grant of Security Interest.
The sale and delivery on the Closing Date of the Mortgage Loans
described on the Mortgage Loan Schedule in accordance with the terms and
conditions of this Agreement is mandatory. It is specifically understood and
agreed that each Mortgage Loan is unique and identifiable on the date hereof and
that an award of money damages would be insufficient to compensate the Purchaser
for the losses and damages incurred by the Purchaser in the event of the
Seller's failure to deliver the Mortgage Loans on or before the Closing Date.
The Seller hereby grants to the Purchaser a lien on and a continuing security
interest in the Seller's interest in each Mortgage Loan and each document and
instrument evidencing each such Mortgage Loan to secure the performance by the
Seller of its obligation hereunder, and the Seller agrees that it holds such
Mortgage Loans in custody for the Purchaser, subject to the Purchaser's
obligation to deliver or cause to be delivered the consideration for the
Mortgage Loans pursuant to Section 2 hereof. The Seller agrees that, upon
acceptance of the Mortgage Loans by the Purchaser or its designee and delivery
of payment to the Seller, that its security interest in the Mortgage Loans shall
be released. All rights and remedies of the Purchaser under this Agreement are
distinct from, and cumulative with, any other rights or remedies under this
Agreement or afforded by law or equity and all such rights and remedies may be
exercised concurrently, independently or successively.
Notwithstanding the foregoing, if on the Closing Date, each of the
conditions set forth in Section 10 hereof shall have been satisfied and the
Purchaser shall not have paid or
20
caused to be paid the purchase price as described in Section 2 hereof, or any
such condition shall not have been waived or satisfied and the Purchaser
determines not to pay or cause to be paid the purchase price, the Purchaser
shall immediately effect the redelivery of the Mortgage Loans, if delivery to
the Purchaser has occurred and the security interest created by this Section 18
shall be deemed to have been released.
Section 19. Severability.
Any part, provision, representation or warranty of this Agreement
which is prohibited or which is held to be void or unenforceable shall be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof. Any part, provision,
representation or warranty of this Agreement which is prohibited or
unenforceable or is held to be void 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, and any
such prohibition or unenforceability in any jurisdiction as to any Mortgage Loan
shall not invalidate or render unenforceable such provision in any other
jurisdiction. To the extent permitted by applicable law, the parties hereto
waive any provision of law which prohibits or renders void or unenforceable any
provision hereof.
Section 20. Counterparts.
This Agreement may be executed in counterparts, each of which will be
an original, but which together shall constitute one and the same agreement.
Section 21. Amendment.
This Agreement cannot be amended or modified in any manner without the
prior written consent of each party.
Section 22. GOVERNING LAW.
THIS AGREEMENT SHALL BE DEEMED TO HAVE BEEN MADE AND PERFORMED IN THE
STATE OF NEW YORK AND SHALL BE INTERPRETED IN ACCORDANCE WITH THE LAWS OF SUCH
STATE, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES OF SUCH STATE.
Section 23. Further Assurances.
Each of the parties agrees to execute and deliver such instruments and
take such actions as another party may, from time to time, reasonably request in
order to effectuate the purpose and to carry out the terms of this Agreement
including any amendments hereto which may be required by either Rating Agency.
Section 24. Successors and Assigns.
This Agreement shall bind and inure to the benefit of and be enforceable by
the Seller and the Purchaser and their permitted successors and assigns and, to
the extent specified in Section 13 hereof, Xxxxxxx Xxxxx, and their directors,
officers and controlling persons (within the meaning of federal securities
laws). The Seller acknowledges and agrees that the Purchaser may
21
assign its rights under this Agreement (including, without limitation, with
respect to the Seller's representations and warranties respecting the Mortgage
Loans) to the Trustee. Any person into which the Seller may be merged or
consolidated (or any person resulting from any merger or consolidation involving
the Seller), any person resulting from a change in form of the Seller or any
person succeeding to the business of the Seller, shall be considered the
"successor" of the Seller hereunder and shall be considered a party hereto
without the execution or filing of any paper or any further act or consent on
the part of any party hereto. Except as provided in the two preceding sentences,
this Agreement cannot be assigned, pledged or hypothecated by either party
hereto without the written consent of the other parties to this Agreement and
any such assignment or purported assignment shall be deemed null and void.
Section 25. The Seller.
The Seller will keep in full effect all rights as are necessary to
perform their respective obligations under this Agreement.
Section 26. Entire Agreement.
This Agreement contains the entire agreement and understanding between
the parties with respect to the subject matter hereof, and supersedes all prior
and contemporaneous agreements, understandings, inducements and conditions,
express or implied, oral or written, of any nature whatsoever with respect to
the subject matter hereof.
Section 27. No Partnership.
Nothing herein contained shall be deemed or construed to create a
partnership or joint venture between the parties hereto.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
22
IN WITNESS WHEREOF, the parties hereto have caused their names to be signed
hereto by their respective duly authorized officers as of the date first above
written.
XXXXXXX XXXXX MORTGAGE LENDING, INC.
By:
------------------------------------
Name: Xxxxx Xxxxxxx
Title: Authorized Signatory
XXXXXXX XXXXX MORTGAGE INVESTORS, INC.
By:
------------------------------------
Name: Xxxxxxx Xxxxxx
Title: President
EXHIBIT 1
CONTENTS OF 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 or
its designee, and which shall be delivered to the Purchaser or its designee
pursuant to the terms of the Agreement.
The original Mortgage Note, including any riders thereto, endorsed by
the Seller or the originator, as applicable, without recourse in proper
form to the order of the Trustee, at the direction of the Purchaser, with
any intervening endorsements showing an unbroken chain of title from the
originator to the Trustee or with respect to the Mortgage Loans as to which
the Mortgage Note has been lost, lost note affidavits and if available, a
copy of the lost Mortgage Note;
An original duly executed assignment of Mortgage in recordable form
from the originator to the Trustee;
The original recorded Mortgage, if available. If, in connection with
any Mortgage Loan, the Seller cannot deliver the original Mortgage with
evidence of recording thereon on or prior to the Closing Date because of
its delivery to, or a delay caused by, the public recording office where
such Mortgage has been delivered for recordation, or if such original
Mortgage Loan has been retained by the public recording office as a matter
of policy, or has been lost, the Seller shall deliver or cause to be
delivered to the Trustee a photocopy thereof, if available (certified by
the Seller to be a true and correct copy of the original which has been
transmitted for recordation), together with an officer's certificate of the
Seller stating that such Mortgage has been dispatched to the appropriate
recording official for recordation, has been retained by such recording
office as a matter of policy or has been lost, as applicable;
If applicable and available, all original intervening recorded
assignments, if any, showing an unbroken chain of title to the Mortgage
from the originator to the Seller or the Trustee;
The originals of each assumption, modification or substitution
agreement, if any and if available, relating to the Mortgage Loan. If in
connection with any Mortgage Loan the Seller cannot deliver the assumption,
modification or substitution agreement with evidence of recording thereon
on or prior to the Closing Date because of a delay caused by the public
recording office where such assumption, modification or substitution
agreement has been delivered for recordation, the Seller shall deliver or
cause to be delivered to the Trustee a photocopy of such assumption,
modification or substitution agreement (certified by the Seller to be a
true and correct copy of the original which has been transmitted for
recordation), together with a certificate of an officer of the Seller
stating that such assumption, modification or substitution agreement has
been dispatched to the appropriate recording official for recordation, if
available; and
the original mortgagee's title insurance policy or a written
commitment to issue such title insurance policy.
E-1-1
EXHIBIT 2
CONTENTS OF FINAL 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 or its agent, and which shall be delivered to the Purchaser
pursuant to the terms of the Agreement.
The original Mortgage Note, including any riders thereto, endorsed by
the Seller or the originator, as applicable, without recourse in proper
form to the order of the Trustee, at the direction of the Purchaser, with
any intervening endorsements showing an unbroken chain of title from the
originator to the Trustee, or with respect to the Mortgage Loans as to
which the Mortgage Note has been lost, lost note affidavits and if
available, a copy of the lost Mortgage Note;
An original duly executed assignment of Mortgage in recordable form
from the Seller or the originator, as applicable, to the Trustee, with
evidence of recording indicated thereon; provided that if such document is
not included because of a delay by the public recording office where such
document has been delivered for recordation, the Seller shall include or
cause to be included a copy thereof certified by the appropriate recording
office;
The original recorded Mortgage, if available, with evidence of
recording indicated thereon; provided that if such document is not included
because of a delay by the public recording office where such document has
been delivered for recordation or such office as a matter of policy does
not return the original of such document or if such original Mortgage has
been lost, the Seller shall include or cause to be included a copy thereof
certified by the appropriate recording office, if available;
The original intervening assignments, including warehousing
assignments, if any and if available, with evidence of recording thereon,
showing an unbroken chain of title to the Mortgage from the Seller or the
originator, as the case may be, to the Seller or the Trustee; provided that
if such document is not included because of a delay by the public recording
office where such document has been delivered for recordation or such
office as a matter of policy does not return the original of such document,
the Seller shall include or cause to be included a copy thereof certified
by the appropriate recording office, if available;
The originals of each assumption, modification or substitution
agreement, if any and if available, relating to the Mortgage Loan; and
the original mortgagee's title insurance policy or, if a master title
policy has been issued by the title insurer, a mortgagee's certificate of
title insurance or a written commitment to issue such title insurance
policy.
E-2-1
EXHIBIT 3
MORTGAGE LOAN SCHEDULE INFORMATION
The Preliminary and Final Mortgage Loan Schedules shall set forth the
following information with respect to each Mortgage Loan:
the loan number of the mortgage loan;
the city, state and zip code of the Mortgage Property;
a code indicating whether the Mortgaged Property is owner-occupied;
the type of Residential Dwelling constituting the Mortgaged Property;
the original months to maturity;
the original date of the mortgage;
the Loan-to-Value Ratio at origination;
the Mortgage Rate;
the date on which the first Monthly Payment was due on the Mortgage
Loan;
the stated maturity date;
the amount of the Monthly Payment at origination;
the amount of the Monthly Payment as of the Cut-off Date;
the last Due Date on which a Monthly Payment was actually applied to
the unpaid Stated Principal Balance;
the original principal amount of the Mortgage Loan;
the Stated Principal Balance of the Mortgage Loan as of the close of
business on the Cut-off Date;
a code indicating the purpose of the Mortgage Loan (i.e., purchase
financing, Rate/Term Refinancing, Cash-Out Refinancing);
a code indicating the documentation style (i.e., full, alternative or
reduced);
[reserved];
the Value of the Mortgaged Property;
the sale price of the Mortgaged Property, if applicable;
E-3-1
the actual unpaid principal balance of the Mortgage Loan as of the
Cut-off Date;
the Servicing Fee;
[reserved];
with respect to each adjustable-rate Mortgage Loan, the next Interest
Rate Adjustment Date;
with respect to each adjustable-rate Mortgage Loan, the Gross Margin;
with respect to each adjustable-rate Mortgage Loan, the Minimum and
Maximum Mortgage Rate under the terms of the Mortgage Note;
with respect to each adjustable-rate Mortgage Loan, the First Rate
Cap;
with respect to each adjustable-rate Mortgage Loan, the related
Periodic Rate Cap;
with respect to each adjustable-rate Mortgage Loan, whether additional
collateral exists;
with respect to each adjustable-rate Mortgage Loan, whether it is
interest-only; and
with respect to each adjustable-rate Mortgage Loan, the Seller.
Such schedule shall set forth the following information with respect
to the Mortgage Loans in the aggregate as of the Cut-off Date: (1) the number of
Mortgage Loans; (2) the current principal balance of the Mortgage Loans; (3) the
weighted average Mortgage Rate of the Mortgage Loans; and (4) the weighted
average maturity of the Mortgage Loans.
E-3-2
EXHIBIT 4
SELLER'S INFORMATION
All information in the Prospectus Supplement described under the
following Sections: "SUMMARY INFORMATION -- The Mortgage Loans," "THE MORTGAGE
POOL".
E-4-1
EXHIBIT 5
PURCHASER'S INFORMATION
All information in the Prospectus Supplement and the Prospectus,
except the Seller's Information.
E-5-1
EXHIBIT 6
SCHEDULE OF LOST NOTES
Intentionally Omitted
E-6-1
EXHIBIT 7
REVISED February 07, 0000
XXXXXXXX X - Standard & Poor's Anti-Predatory Lending Categorization
Standard & Poor's has categorized loans governed by anti-predatory lending laws
in the Jurisdictions listed below into three categories based upon a combination
of factors that include (a) the risk exposure associated with the assignee
liability and (b) the tests and thresholds set forth in those laws. Note that
certain loans classified by the relevant statute as Covered are included in
Standard & Poor's High Cost Loan Category because they included thresholds and
tests that are typical of what is generally considered High Cost by the
industry.
STANDARD & POOR'S HIGH COST LOAN CATEGORIZATION
Category under
Name of Anti-Predatory Lending Applicable Anti-
State/Jurisdiction Law/Effective Date Predatory Lending Law
------------------ ------------------------------ ---------------------
Arkansas Arkansas Home Loan Protection High Cost Home Loan
Act, Ark. Code Xxx. Sections
00-00-000 et seq.
Effective July 16, 0000
Xxxxxxxxx Xxxxxxx, XX Ordinance No. 72-2003 (PSH), Covered Loan
Mun. Code Sections 757.01 et
seq.
Effective June 2, 2003
Colorado Consumer Equity Protection, Covered Loan
Colo. Stat. Xxx. Sections
5-3.5-101 et seq.
Effective for covered loans
offered or entered into on or
after January 1, 2003. Other
provisions of the Act took
effect on June 7, 0000
Xxxxxxxxxxx Xxxxxxxxxxx Abusive Home Loan High Cost Home Loan
Lending Practices Act, Conn.
Gen. Stat. Sections 36a-746 et
seq.
Effective October 1, 0000
Xxxxxxxx xx Xxxxxxxx Home Loan Protection Act, D.C. Covered Loan
Code Sections 26-1151.01 et
seq.
Effective for loans closed on
or after January 28, 2003
Florida Fair Lending Act, Fla. Stat. High Cost Home Loan
Xxx. Sections 494.0078 et seq.
Effective October 2, 2002
E-7-1
STANDARD & POOR'S HIGH COST LOAN CATEGORIZATION
Category under
Name of Anti-Predatory Lending Applicable Anti-
State/Jurisdiction Law/Effective Date Predatory Lending Law
------------------ ------------------------------ ---------------------
Georgia (Oct. 1, 2002 - Georgia Fair Lending Act, Ga. High Cost Home Loan
Mar. 6, 2003) Code Xxx. Sections 7-6A-1 et
seq.
Effective October 1, 2002 -
March 6, 2003
Georgia as amended Georgia Fair Lending Act, Ga. High Cost Home Loan
(Mar. 7, 2003 - current) Code Xxx. Sections 7-6A-1 et
seq.
Effective for loans closed on
or after Xxxxx 0, 0000
XXXXX Section 32 Home Ownership and Equity High Cost Loan
Protection Act of 1994, 15
U.S.C. Section 1639, 12
C.F.R. Sections 226.32 and
226.34
Effective October 1, 1995,
amendments October 1, 2002
Illinois High Risk Home Loan Act, Ill. High Risk Home Loan
Comp. Stat. tit. 815,
Sections 137/5 et seq.
Effective January 1, 2004
(prior to this date,
regulations under Residential
Mortgage License Act effective
from May 14, 2001)
Indiana Indiana Home Loan Practices High Cost Home Loan
Act, Ind. Code Xxx.
Sections 24-9-1-1 et seq.
Effective for loans originated
on or after January 1, 2005.
Kansas Consumer Credit Code, Kan. High Loan to Value
Stat. Xxx. Sections 16a-1-101 Consumer Loan (id.
et seq. Section 16a-3-207)
and;
Sections 16a-1-301 and High APR Consumer
16a-3-207 became effective Loan (id. Section
April 14, 1999; Section 16a-3-308a)
16a-3-308a became effective
July 1, 1999
Kentucky 2003 KY H.B. 287 - High Cost High Cost Home Loan
Home Loan Act, Ky. Rev. Stat.
Sections 360.100 et seq.
Effective June 24, 2003
Maine Truth in Lending, Me. Rev. High Rate High Fee
Stat. tit. 9-A, Sections 8-101 Mortgage
et seq.
E-7-2
STANDARD & POOR'S HIGH COST LOAN CATEGORIZATION
Category under
Name of Anti-Predatory Lending Applicable Anti-
State/Jurisdiction Law/Effective Date Predatory Lending Law
------------------ ------------------------------ ---------------------
Effective September 29, 1995
and as amended from time to
time
Massachusetts Part 40 and Part 32, 209 High Cost Home Loan
C.M.R. Sections 32.00 et seq.
and 209 C.M.R. Sections 40.01
et seq.
Effective March 22, 2001 and
amended from time to time
Massachusetts Predatory Home High Cost Home
Loan Practices Act Mortgage Loan
Mass. Gen. Laws ch. 183C,
Sections 1 et seq.
Effective November 7, 2004
Nevada Assembly Xxxx No. 284, Nev. Home Loan
Rev. Stat. Sections 598D.010
et seq.
Effective October 1, 2003
New Jersey New Jersey Home Ownership High Cost Home Loan
Security Act of 2002, N.J.
Rev. Stat. Sections 46:10B-22
et seq.
Effective for loans closed on
or after November 27, 2003
New Mexico Home Loan Protection Act, N.M. High Cost Home Loan
Rev. Stat. Sections 58-21A-1
et seq.
Effective as of January 1,
2004; Revised as of February
26, 2004
New York N.Y. Banking Law Article 6-l High Cost Home Loan
Effective for applications
made on or after April 1, 2003
North Carolina Restrictions and Limitations High Cost Home Loan
on High Cost Home Loans, N.C.
Gen. Stat. Sections 24-1.1E et
seq.
Effective July 1, 2000;
amended October 1, 2003
(adding open-end lines of
credit)
Ohio H.B. 386 (codified in various Covered Loan
sections of the Ohio Code),
Ohio Rev. Code
Xxx. Sections 1349.25 et seq.
E-7-3
STANDARD & POOR'S HIGH COST LOAN CATEGORIZATION
Category under
Name of Anti-Predatory Lending Applicable Anti-
State/Jurisdiction Law/Effective Date Predatory Lending Law
------------------ ------------------------------ ---------------------
Effective May 24, 2002
Oklahoma Consumer Credit Code (codified Subsection 10 Mortgage
in various sections of Title
14A)
Effective July 1, 2000;
amended effective January 1,
2004
South Carolina South Carolina High Cost and High Cost Home Loan
Consumer Home Loans Act, S.C.
Code Xxx. Sections 37-23-10
et seq.
Effective for loans taken on
or after January 1, 0000
Xxxx Xxxxxxxx Xxxx Xxxxxxxx Residential West Virginia
Mortgage Lender, Broker and Mortgage Loan Act
Servicer Act, W. Va. Code Loan
Xxx. Sections 31-17-1 et seq.
Effective June 5, 2002
STANDARD & POOR'S COVERED LOAN CATEGORIZATION
Category under
Name of Anti-Predatory Lending Applicable Anti-
State/Jurisdiction Law/Effective Date Predatory Lending Law
------------------ ------------------------------ ---------------------
Georgia (Oct. 1, 2002 - Georgia Fair Lending Act, Ga. Covered Loan
Mar. 6, 2003) Code Xxx. Sections 7-6A-1 et
seq.
Effective October 1, 2002 -
March 6, 0000
Xxx Xxxxxx Xxx Xxxxxx Home Ownership Covered Home Loan
Security Act of 2002, N.J.
Rev. Stat. Sections 46:10B-22
et seq.
Effective November 27, 2003 -
July 5, 2004
STANDARD & POOR'S HOME LOAN CATEGORIZATION
E-7-4
Category under
Name of Anti-Predatory Lending Applicable Anti-
State/Jurisdiction Law/Effective Date Predatory Lending Law
------------------ ------------------------------ ---------------------
Georgia (Oct. 1, 2002 - Georgia Fair Lending Act, Ga. Home Loan
Mar. 6, 2003) Code Xxx. Sections 7-6A-1 et
seq.
Effective October 1, 2002 -
March 6, 0000
Xxx Xxxxxx Xxx Xxxxxx Home Ownership Home Loan
Security Act of 2002, N.J.
Rev. Stat. Sections 46:10B-22
et seq.
Effective for loans closed on
or after November 27, 2003
New Mexico Home Loan Protection Act, N.M. Home Loan
Rev. Stat. Sections 58-21A-1
et seq.
Effective as of January 1,
2004; Revised as of February
26, 2004
North Carolina Restrictions and Limitations Consumer Home Loan
on High Cost Home Loans, N.C.
Gen. Stat. Sections 24-1.1E et
seq.
Effective July 1, 2000;
amended October 1, 2003
(adding open-end lines of
credit)
South Carolina South Carolina High Cost and Consumer Home Loan
Consumer Home Loans Act, S.C.
Code Xxx. Sections 37-23-10 et
seq.
Effective for loans taken on
or after January 1, 2004
E-7-5
SCHEDULE A
REQUIRED RATINGS FOR EACH CLASS OF CERTIFICATES
Offered Certificates
Class Xxxxx'x S&P
----- ------- ----
Class A-1A Aaa AAA
Class A-1B1 Aaa AAA
Class A-1B2 Aaa AAA
Class A-1B3 Aaa AAA
Class A-1B4 Aaa AAA
Class A-1C1 Aaa AAA
Class A-1C2 Aaa AAA
Class A-2A Aaa AAA
Class A-2B1 Aaa AAA
Class A-2B2 Aaa AAA
Class A-3A1 Aaa AAA
Class A-3A2 Aaa AAA
Class X-0X0 Xxx XXX
Xxxxx X-0 Xx0 XX
Class M-2 A2 A
Class B-1 Baa2 BBB
Class X-0 Xxx0 XXX-
Xxxx of the above ratings has been lowered since the respective dates of such
letters.
