EXHIBIT 99.1
SUBSEQUENT TRANSFER INSTRUMENT
Pursuant to this Subsequent Transfer Instrument, dated December 22, 2004
(the "Instrument"), between Park Place Securities Inc. as seller (the
"Depositor") and Xxxxx Fargo Bank, N.A. as trustee (the "Trustee") of the Park
Place Securities Inc., Asset-Backed Pass-Through Certificates, Series 2004-MHQ1,
and pursuant to the Pooling and Servicing Agreement, dated as of October 1, 2004
(the "Pooling and Servicing Agreement"), among the Depositor as depositor, HomEq
Servicing Corporation as master servicer and the Trustee, the Depositor and the
Trustee agree to the sale by the Depositor and the purchase by the Trustee, on
behalf of the Trust Fund, of the Mortgage Loans listed on the attached Schedule
of Mortgage Loans (the "Subsequent Mortgage Loans").
Capitalized terms used but not otherwise defined herein shall have
the meanings set forth in the Pooling and Servicing Agreement.
Section 1. Conveyance of Subsequent Mortgage Loans.
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(a) The Depositor does hereby sell, transfer, assign, set over and
convey to the Trustee on behalf of the Trust Fund, without recourse, all of its
right, title and interest in and to the Subsequent Mortgage Loans, and including
all amounts due on the Subsequent Mortgage Loans after the related Subsequent
Cut-off Date, and all items with respect to the Subsequent Mortgage Loans to be
delivered pursuant to Section 2.01 of the Pooling and Servicing Agreement;
provided, however that the Depositor reserves and retains all right, title and
interest in and to amounts due on the Subsequent Mortgage Loans on or prior to
the related Subsequent Cut-off Date. The Depositor, contemporaneously with the
delivery of this Agreement, has delivered or caused to be delivered to the
Trustee each item set forth in Section 2.01 of the Pooling and Servicing
Agreement. The transfer to the Trustee by the Depositor of the Subsequent
Mortgage Loans identified on the Mortgage Loan Schedule shall be absolute and is
intended by the Depositor, the Master Servicer, the Trustee and the
Certificateholders to constitute and to be treated as a sale by the Depositor to
the Trust Fund.
(b) The Depositor, concurrently with the execution and delivery
hereof, does hereby transfer, assign, set over and otherwise convey to the
Trustee without recourse for the benefit of the Certificateholders all the
right, title and interest of the Depositor, in, to and under the Subsequent
Mortgage Loan Purchase Agreement, dated the date hereof, between the Depositor
as purchaser and the Master Servicer as originator and as seller, to the extent
of the Subsequent Mortgage Loans.
(c) Additional terms of the sale are set forth on Attachment A
hereto.
Section 2. Representations and Warranties; Conditions Precedent.
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(a) The Depositor hereby confirms that each of the conditions
precedent and the representations and warranties set forth in Section 2.09 of
the Pooling and Servicing Agreement are satisfied as of the date hereof.
(b) All terms and conditions of the Pooling and Servicing Agreement
are hereby ratified and confirmed; provided, however, that in the event of any
conflict, the
provisions of this Instrument shall control over the conflicting provisions of
the Pooling and Servicing Agreement.
Section 3. Recordation of Instrument.
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To the extent permitted by applicable law, this Instrument, or a
memorandum thereof if permitted under applicable law, is subject to recordation
in all appropriate public offices for real property records in all of the
counties or other comparable jurisdictions in which any or all of the properties
subject to the Mortgages are situated, and in any other appropriate public
recording office or elsewhere, such recordation to be effected by the Master
Servicer at the Certificateholders' expense on direction of the related
Certificateholders, but only when accompanied by an Opinion of Counsel to the
effect that such recordation materially and beneficially affects the interests
of the Certificateholders or is necessary for the administration or servicing of
the Mortgage Loans.
Section 4. Governing Law.
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This Instrument shall be construed in accordance with the laws of
the State of New York and the obligations, rights and remedies of the parties
hereunder shall be determined in accordance with such laws, without giving
effect to principles of conflicts of law.
Section 5. Counterparts.
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This Instrument may be executed in one or more counterparts and by
the different parties hereto on separate counterparts, each of which, when so
executed, shall be deemed to be an original; such counterparts, together, shall
constitute one and the same instrument.
Section 6. Successors and Assigns.
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This Instrument shall inure to the benefit of and be binding upon
the Depositor, the Trustee and their respective successors and assigns.
PARK PLACE SECURITIES INC.
By:_________________________________
Name:
Title:
XXXXX FARGO BANK, N.A., as Trustee
By:_________________________________
Name:
Title:
ATTACHMENTS
A. Additional terms of sale.
B. Schedule of Subsequent Mortgage Loans.
ATTACHMENT A
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ADDITIONAL TERMS OF SALE
A. General
1. Subsequent Cut-off Date: December 1, 2004
2. Subsequent Transfer Date: December 22, 2004
3. Aggregate Principal Balance of the Subsequent Mortgage Loans as
of the Subsequent Cut-off Date: $599,999,693.29
4. Purchase Price: 100.00%
B. The following representations and warranties with respect to such
Subsequent Mortgage Loan determined as of the related Subsequent Cut-off Date
are true and correct: (i) the Subsequent Mortgage Loan may not be 30 or more
days delinquent as of the related Subsequent Cut-off Date; (ii) the remaining
term to stated maturity of the Subsequent Mortgage Loan shall not be less than
116 months and shall not exceed 360 months from its first payment date; (iii)
the Subsequent Mortgage Loan may not provide for negative amortization; (iv) the
Subsequent Mortgage Loan shall not have a Loan-to-Value Ratio greater than
100.00%; (v) the Subsequent Mortgage Loans shall have, as of the Subsequent
Cut-off Date, a weighted average term since origination not in excess of 5
months; (vi) no Subsequent Mortgage Loan shall have a Mortgage Rate less than
5.750% or greater than 12.950%; (vii) the Subsequent Mortgage Loan shall have
been serviced by the Master Servicer since origination or purchase by the
Originator in accordance with its standard servicing practices; (viii) the
Subsequent Mortgage Loan must have a first payment date occurring on or before
February 1, 2005; (ix) the Subsequent Mortgage Loan shall have a Stated
Principal Balance no greater than $879,328 and (x) the Subsequent Mortgage Loan
shall have been underwritten in accordance with the criteria set forth under the
section "The Mortgage Pool--Underwriting Standards; Representations" in the
Prospectus Supplement.
C. Following the purchase of the Subsequent Group I Mortgage Loans, the
Group I Mortgage Loans (including the related Subsequent Group I Mortgage Loans)
shall, as of the related Subsequent Cut-off Date: (i) have a weighted average
original term to stated maturity of not more than 357 months from the first
payment date thereon; (ii) have a weighted average Mortgage Rate of not less
than 7.566% and not more than 7.666%; (iii) have a weighted average
Loan-to-Value Ratio of not more than 83.18%, (iv) have no Mortgage Loan with a
Stated Principal Balance in excess of Xxxxxxx Mac loan limits, (v) consist of
Mortgage Loans with Prepayment Charges representing no less than approximately
69.23% of the Group I Mortgage Loans and (vi) with respect to the
Adjustable-Rate Mortgage Loans in Loan Group I, have a weighted average Gross
Margin of not less than 5.979%, in each case, measured by aggregate Stated
Principal Balance of the Group I Mortgage Loans as of the Cut-off Date or
Subsequent Cut-off Date, as applicable.
Following the purchase of the Subsequent Group II Mortgage Loans,
the Group II Mortgage Loans (including the related Subsequent Group II Mortgage
Loans) shall, as of the related Subsequent Cut-off Date: (i) have a weighted
average original term to stated maturity of not more than 356 months from the
first payment date thereon; (ii) have a weighted average
Mortgage Rate of not less than 7.577% and not more than 7.677%; (iii) have a
weighted average Loan-to-Value Ratio of not more than 84.15%; (iv) have no
Mortgage Loan with a Stated Principal Balance in excess of $879,328; (v) consist
of Mortgage Loans with Prepayment Charges representing no less than
approximately 73.14% of the Group II Mortgage Loans; and (vi) with respect to
the Adjustable-Rate Mortgage Loans in Loan Group II, have a weighted average
Gross Margin of not less than 5.927%, in each case, measured by aggregate Stated
Principal Balance of the Group II Mortgage Loans as of the related Cut-off Date
or Subsequent Cut-off Date, as applicable.
ATTACHMENT B
SCHEDULE OF SUBSEQUENT MORTGAGE LOANS
Available Upon Request
