Exhibit 99.3
RBC Mortgage Loan Purchase Agreement
MORTGAGE LOAN PURCHASE AGREEMENT
(RBC BANK LOANS)
Mortgage Loan Purchase Agreement (this "Agreement"), dated as of
August 1, 2007, between Royal Bank of Canada, acting through its branch located
at Xxx Xxxxxxx Xxxxx, Xxx Xxxx, XX 00000-0000 (the "Seller") and Xxxxxx Xxxxxxx
Capital I Inc. (the "Purchaser").
The Seller agrees to sell, and the Purchaser agrees to purchase,
certain mortgage loans listed on Exhibit 1 hereto (the "Mortgage Loans") as
described herein. The Purchaser will convey the Mortgage Loans to a trust (the
"Trust") created pursuant to a Pooling and Servicing Agreement (the "Pooling and
Servicing Agreement"), dated as of August 1, 2007, between the Purchaser, as
depositor, Capmark Finance Inc., as Capmark Master Servicer (together with its
successors and assigns, the "Master Servicer"), Prudential Asset Resources,
Inc., as Prudential Master Servicer and XX Xxxxxx Special Servicer, Centerline
Servicing, Inc. (formerly ARCap Servicing, Inc.), as General Special Servicer
(the "Special Servicer"), Xxxxx Fargo Bank, National Association, as Trustee and
Custodian, and U.S. Bank National Association, as Paying Agent, Certificate
Registrar and Authenticating Agent. In exchange for the Mortgage Loans and
certain other mortgage loans (the "Other Mortgage Loans") to be purchased by the
Purchaser, the Trust will issue to the Depositor pass-through certificates to be
known as Xxxxxx Xxxxxxx Capital I Inc., Commercial Mortgage Pass-Through
Certificates, Series 2007-IQ15 (the "Certificates"). The Certificates will be
issued pursuant to the Pooling and Servicing Agreement.
Capitalized terms used herein but not defined herein shall have the
meanings assigned to them in the Pooling and Servicing Agreement.
The Class A-1, Class A-1A, Class A-2, Class A-3 Class A-4, Class A-M
and Class A-J Certificates (the "Public Certificates") will be sold by the
Purchaser to Xxxxxx Xxxxxxx & Co. Incorporated, Bear, Xxxxxxx & Co. Inc., RBC
Capital Markets Corporation and Greenwich Capital Markets, Inc. (collectively,
the "Underwriters"), pursuant to an Underwriting Agreement, between the
Purchaser and the Underwriters, dated August 9, 2007 (the "Underwriting
Agreement"), and the Class X, Class B, Class C, Class D, Class E, Class F, Class
G, Class H, Class J, Class K, Class L, Class M, Class N, Class O, Class P, Class
EI, Class R-I, Class R-II and Class R-III Certificates (collectively, the
"Private Certificates") will be sold by the Purchaser to Xxxxxx Xxxxxxx & Co.
Incorporated (in such capacity, the "Initial Purchaser") pursuant to a
Certificate Purchase Agreement, between the Purchaser and the Initial Purchaser,
dated August 9, 2007 (the "Certificate Purchase Agreement"). The Underwriters
will offer the Public Certificates for sale publicly pursuant to a Prospectus
dated June 22, 2007, as supplemented by a Prospectus Supplement dated August 9,
2007 (together, the "Prospectus Supplement"), and the Initial Purchaser will
offer the Private Certificates (other than the Class EI, Class R-I, Class R-II
and Class R-III Certificates) for sale in transactions exempt from the
registration requirements of the Securities Act of 1933 pursuant to a Private
Placement Memorandum, dated as of August 9, 2007 (the "Memorandum").
In consideration of the mutual agreements contained herein, the
Seller and the Purchaser hereby agree as follows:
Section 1. Agreement to Purchase. The Seller agrees to sell, and the
Purchaser agrees to purchase, on a servicing released basis, the Mortgage Loans
identified on the schedule (the "Mortgage Loan Schedule") annexed hereto as
Exhibit 1, as such schedule may be amended from time to time prior to the
Closing Date to reflect the actual Mortgage Loans accepted by the Purchaser
pursuant to the terms hereof. The Mortgage Loans and the Other Mortgage Loans
will have an aggregate principal balance as of the close of business on the
Cut-Off Date, after giving effect to any payments due on or before such date,
whether or not received, of approximately $394,427,182. The sale of the Mortgage
Loans shall take place on August 23, 2007 or such other date as shall be
mutually acceptable to the parties hereto (the "Closing Date"). The purchase
price to be paid by the Purchaser for the Mortgage Loans shall equal the amount
set forth as such purchase price in the Xxxx of Sale. The purchase price shall
be paid to the Seller by wire transfer in immediately available funds on the
Closing Date.
Notwithstanding anything to the contrary in this Agreement, with
respect to the Mortgage Loans originated or acquired by the Seller and subject
to defeasance, the Seller shall retain the right to designate and establish the
successor borrower and to purchase or cause the purchase on behalf of the
related borrower of the related defeasance collateral ("Seller Defeasance Rights
and Obligations"). In the event the Master Servicer receives notice of a
defeasance request with respect to a Mortgage Loan originated or acquired by the
Seller and subject to defeasance, the Master Servicer shall provide upon receipt
of such notice, written notice of such defeasance request to the Seller or its
assignee. Until such time as the Seller provides written notice to the contrary,
notice of a defeasance of a Mortgage Loan with Seller Defeasance Rights and
Obligations shall be delivered to the Seller pursuant to the notice provisions
of the Pooling and Servicing Agreement.
On the Closing Date, the Purchaser will assign to the Trustee
pursuant to the Pooling and Servicing Agreement all of its right, title and
interest in and to the Mortgage Loans and its rights under this Agreement (to
the extent set forth in Section 15), and the Trustee shall succeed to such
right, title and interest in and to the Mortgage Loans and the Purchaser's
rights under this Agreement (to the extent set forth in Section 15).
Section 2. Conveyance of Mortgage Loans. Effective as of the Closing
Date, subject only to receipt of the consideration referred to in Section 1
hereof and the satisfaction of the conditions specified in Sections 6 and 7
hereof, the Seller does hereby transfer, assign, set over and otherwise convey
to the Purchaser, without recourse, all the right, title and interest of the
Seller, with the understanding that a Servicing Rights Purchase Agreement, dated
August 23, 2007, will be executed by the Seller and the Master Servicer, in and
to the Mortgage Loans identified on the Mortgage Loan Schedule as of the Closing
Date. The Mortgage Loan Schedule, as it may be amended from time to time on or
prior to the Closing Date, shall conform to the requirements of this Agreement
and the Pooling and Servicing Agreement. In connection with such transfer and
assignment, the Seller shall deliver to the Custodian on behalf of the Trustee,
on behalf of the Purchaser, on or prior to the Closing Date, the Mortgage Note
(as described in clause (a) below) for each Mortgage Loan and on or prior to the
fifth Business Day after the Closing Date, five limited powers of attorney
substantially in the form attached hereto as Exhibit 4 in favor of the Trustee,
the Master Servicer and the Special Servicer to empower the Trustee, the Master
Servicer and, in the event of the failure or incapacity of the Trustee and the
Master Servicer, the Special Servicer, to submit for recording, at the expense
of the Seller, any mortgage loan documents required to be recorded as described
in the Pooling and Servicing Agreement and any intervening assignments with
evidence of recording thereon that are required to be included in the Mortgage
Files (so long as original counterparts have previously been delivered to the
Trustee). The Seller agrees to reasonably cooperate with the Trustee, the Master
Servicer and the Special Servicer in connection with any additional powers of
attorney or revisions thereto that are requested by such parties for purposes of
such recordation. The parties hereto agree that no such power of attorney shall
be used with respect to any Mortgage Loan by or under authorization by any party
hereto except to the extent that the absence of a document described in the
second preceding sentence with respect to such Mortgage Loan remains unremedied
as of the earlier of (i) the date that is 180 days following the delivery of
notice of such absence to the Seller, but in no event earlier than 18 months
from the Closing Date, and (ii) the date (if any) on which such Mortgage Loan
becomes a Specially Serviced Mortgage Loan. The Custodian shall submit such
documents for recording, at the Seller's expense, after the periods set forth
above; provided, however, the Custodian shall not submit such assignments for
recording if the Seller produces evidence that it has sent any such assignment
for recording and certifies that the Seller is awaiting its return from the
applicable recording office. In addition, not later than the 30th day following
the Closing Date, the Seller shall deliver to the Custodian on behalf of the
Trustee each of the remaining documents or instruments specified below (with
such exceptions and additional time periods as are permitted by this Section)
with respect to each Mortgage Loan (each, a "Mortgage File"). (The Seller
acknowledges that the term "without recourse" does not modify the duties of the
Seller under Section 5 hereof.)
All Mortgage Files, or portions thereof, delivered prior to the
Closing Date are to be held by the Custodian on behalf of the Trustee in escrow
on behalf of the Seller at all times prior to the Closing Date. The Mortgage
Files shall be released from escrow upon closing of the sale of the Mortgage
Loans and payments of the purchase price therefor as contemplated hereby. The
Mortgage File for each Mortgage Loan shall contain the following documents:
(a) The original Mortgage Note bearing all intervening endorsements,
endorsed on its face or by allonge attached thereto in blank or endorsed "Pay to
the order of Xxxxx Fargo Bank, National Association, as Trustee for Xxxxxx
Xxxxxxx Capital I Inc., Commercial Mortgage Pass-Through Certificates, Series
2007-IQ15, without recourse, representation or warranty" or if the original
Mortgage Note is not included therein, then a lost note affidavit and indemnity,
with a copy of the Mortgage Note attached thereto;
(b) The original Mortgage, with evidence of recording thereon, and,
if the Mortgage was executed pursuant to a power of attorney, a certified true
copy of the power of attorney certified by the public recorder's office, with
evidence of recording thereon (if recording is customary in the jurisdiction in
which such power of attorney was executed), or certified by a title insurance
company or escrow company to be a true copy thereof; provided that if such
original Mortgage cannot be delivered with evidence of recording thereon on or
prior to the 90th day following the Closing Date because of a delay caused by
the public recording office where such original Mortgage has been delivered for
recordation or because such original Mortgage has been lost, the Seller shall
deliver or cause to be delivered to the Trustee a true and correct copy of such
Mortgage, together with (i) in the case of a delay caused by the public
recording office, an Authorized Person's Certificate (as defined below) of the
Seller stating that such original Mortgage has been sent to the appropriate
public recording official for recordation or (ii) in the case of an original
Mortgage that has been lost after recordation, a certification by the
appropriate county recording office where such Mortgage is recorded that such
copy is a true and complete copy of the original recorded Mortgage;
(c) The originals of all agreements modifying a Money Term or other
material modification, consolidation and extension agreements, if any, with
evidence of recording thereon (if applicable) or if any such original
modification, consolidation or extension agreement has been delivered to the
appropriate recording office for recordation and either has not yet been
returned on or prior to the 90th day following the Closing Date with evidence of
recordation thereon or has been lost after recordation, a true copy of such
modification, consolidation or extension certified by the Seller together with
(i) in the case of a delay caused by the public recording office, an Authorized
Person's Certificate of the Seller stating that such original modification,
consolidation or extension agreement has been dispatched or sent to the
appropriate public recording official for recordation or (ii) in the case of an
original modification, consolidation or extension agreement that has been lost
after recordation, a certification by the appropriate county recording office
where such document is recorded that such copy is a true and complete copy of
the original recorded modification, consolidation or extension agreement, and
the originals of all assumption agreements, if any;
(d) An original Assignment of Mortgage for each Mortgage Loan, in
form and substance acceptable for recording (except for recording information
not yet available if the instrument being recorded has not been returned from
the applicable recording office), signed by the holder of record in blank or in
favor of "Xxxxx Fargo Bank, National Association, as Trustee for Xxxxxx Xxxxxxx
Capital I Inc., Commercial Mortgage Pass-Through Certificates, Series
2007-IQ15";
(e) Originals of all intervening assignments of Mortgage, if any,
with evidence of recording thereon or, if such original assignments of Mortgage
have been delivered to the appropriate recorder's office for recordation,
certified true copies of such assignments of Mortgage certified by the Seller,
or in the case of an original blanket intervening assignment of Mortgage
retained by the Seller, a copy thereof certified by the Seller or, if any
original intervening assignment of Mortgage has not yet been returned on or
prior to the 90th day following the Closing Date from the applicable recording
office or has been lost, a true and correct copy thereof, together with (i) in
the case of a delay caused by the public recording office, an Authorized
Person's Certificate of the Seller stating that such original intervening
assignment of Mortgage has been sent to the appropriate public recording
official for recordation or (ii) in the case of an original intervening
assignment of Mortgage that has been lost after recordation, a certification by
the appropriate county recording office where such assignment is recorded that
such copy is a true and complete copy of the original recorded intervening
assignment of Mortgage;
(f) If the related Assignment of Leases is separate from the
Mortgage, the original of such Assignment of Leases with evidence of recording
thereon or certified by a title insurance company or escrow company to be a true
copy thereof; provided that if such Assignment of Leases has not been returned
on or prior to the 90th day following the Closing Date because of a delay caused
by the applicable public recording office where such Assignment of Leases has
been delivered for recordation or because such original Assignment of Leases has
been lost, the Seller shall deliver or cause to be delivered to the Trustee a
true and correct copy of such Assignment of Leases submitted for recording,
together with, (i) in the case of a delay caused by the public recording office,
an Authorized Person's Certificate (as defined below) of the Seller stating that
such Assignment of Leases has been sent to the appropriate public recording
official for recordation or (ii) in the case of an original Assignment of Leases
that has been lost after recordation, a certification by the appropriate county
recording office where such Assignment of Leases is recorded that such copy is a
true and complete copy of the original recorded Assignment of Leases, in each
case together with an original assignment of such Assignment of Leases, in
recordable form (except for recording information not yet available if the
instrument being recorded has not been returned from the applicable recording
office), signed by the holder of record in blank or in favor of "Xxxxx Fargo
Bank, National Association, as Trustee for Xxxxxx Xxxxxxx Capital I Inc.,
Commercial Mortgage Pass-Through Certificates, Series 2007-IQ15," which
assignment may be effected in the related Assignment of Mortgage;
(g) The original or a copy of each guaranty, if any, constituting
additional security for the repayment of such Mortgage Loan;
(h) The original Title Insurance Policy, or in the event such
original Title Insurance Policy has not been issued, a binder, actual
"marked-up" title commitment, pro forma policy, or an agreement to provide any
of the foregoing pursuant to binding escrow instructions executed by the title
company or its authorized agent with the original Title Insurance Policy to
follow within 180 days of the Closing Date, or a copy of any of the foregoing
certified by the title company with the original Title Insurance Policy to
follow within 180 days of the Closing Date, or a preliminary title report with
the original Title Insurance Policy to follow within 180 days of the Closing
Date;
(i) (A) Copies of UCC financing statements (together with all
assignments thereof) filed in connection with a Mortgage Loan and (B) UCC-2 or
UCC-3 financing statements assigning such UCC financing statements to the
Trustee delivered in connection with the Mortgage Loan;
(j) Copies of the related ground lease(s), if any, to any Mortgage
Loan where the Mortgagor is the lessee under such ground lease and there is a
lien in favor of the mortgagee in such lease.
(k) Copies of any loan agreements, lock-box agreements and
intercreditor agreements, if any, related to any Mortgage Loan;
(l) Either (A) the original of each letter of credit, if any,
constituting additional collateral for such Mortgage Loan (other than letters of
credit representing tenant security deposits which have been collaterally
assigned to the lender), which shall be assigned and delivered to the Trustee
(or delivered to the Custodian on the Trustee's behalf) on behalf of the Trust
with a copy to be held by the Master Servicer, and applied, drawn, reduced or
released in accordance with documents evidencing or securing the applicable
Mortgage Loan and the Pooling and Servicing Agreement or (B) the original of
each letter of credit, if any, constituting additional collateral for such
Mortgage Loan (other than letters of credit representing tenant security
deposits which have been collaterally assigned to the lender), which shall be
held by the Master Servicer on behalf of the Trustee, with a copy to be held by
the Custodian on behalf of the Trustee, and applied, drawn, reduced or released
in accordance with documents evidencing or securing the applicable Mortgage Loan
and the Pooling and Servicing Agreement (it being understood that the Seller has
agreed (a) that the proceeds of such letter of credit belong to the Trust, (b)
to notify, on or before the Closing Date, the bank issuing the letter of credit
that the letter of credit and the proceeds thereof belong to the Trust, and to
use reasonable efforts to obtain within 30 days (but in any event to obtain
within 90 days) following the Closing Date, an acknowledgement thereof by the
bank (with a copy of such acknowledgement to be sent to the Custodian on behalf
of the Trustee) and (c) to indemnify the Trust for any liabilities, charges,
costs, fees or other expenses accruing from the failure of the Seller to assign
the letter of credit hereunder). In the case of clause (B) above, any letter of
credit held by the Master Servicer shall be held in its capacity as agent of the
Trust, and if the Master Servicer sells its rights to service the applicable
Mortgage Loan, the Master Servicer has agreed to assign the applicable letter of
credit to the Trust or at the direction of the Special Servicer to such party as
the Special Servicer may instruct, in each case, at the expense of the Master
Servicer. The Master Servicer has agreed to indemnify the Trust for any loss
caused by the ineffectiveness of such assignment;
(m) The original or a copy of the environmental indemnity agreement,
if any, related to any Mortgage Loan;
(n) Copies of third-party management agreements, if any, for all
hotels and for such other Mortgaged Properties securing Mortgage Loans with a
Cut-Off Date principal balance equal to or greater than $20,000,000;
(o) The original of any Environmental Insurance Policy or, if the
original is held by the related Mortgagor, a copy thereof;
(p) A copy of any affidavit and indemnification agreement in favor
of the lender;
(q) With respect to hospitality properties, a copy of any franchise
agreement, franchise comfort letter and applicable assignment or transfer
documents;
"Authorized Person's Certificate" shall mean a certificate signed by
one or more of the Chairman of the Board, any Vice Chairman, the President, any
Senior Vice President, any Vice President, any Assistant Vice President, any
Treasurer, any Assistant Treasurer or any other person duly authorized to
certify matters relating to the Seller's U.S. commercial mortgage-backed
securities business.
The Assignment of Mortgage, intervening assignments of Mortgage and
assignment of Assignment of Leases referred to in clauses (d), (e) and (f) may
be in the form of a single instrument assigning the Mortgage and the Assignment
of Leases to the extent permitted by applicable law. To avoid the unnecessary
expense and administrative inconvenience associated with the execution and
recording or filing of multiple assignments of mortgages, assignments of leases
(to the extent separate from the mortgages) and assignments of UCC financing
statements, the Seller shall execute, in accordance with the third succeeding
paragraph, the assignments of mortgages, the assignments of leases (to the
extent separate from the mortgages) and the assignments of UCC financing
statements relating to the Mortgage Loans in blank or naming the Trustee on
behalf of the Certificateholders as assignee. Notwithstanding the fact that such
assignments of mortgages, assignments of leases (to the extent separate from the
assignments of mortgages) and assignments of UCC financing statements may name
the Trustee on behalf of the Certificateholders as the assignee, the parties
hereto acknowledge and agree that the Mortgage Loans shall for all purposes be
deemed to have been transferred from the Seller to the Purchaser and from the
Purchaser to the Trustee on behalf of the Certificateholders.
If the Seller cannot deliver, or cause to be delivered, as to any
Mortgage Loan, any of the documents and/or instruments referred to in clauses
(b), (c), (e) or (f), with evidence of recording thereon, because of a delay
caused by the public recording office where such document or instrument has been
delivered for recordation within such 90-day period, but the Seller delivers a
photocopy thereof (to the extent available, certified by the appropriate county
recorder's office to be a true and complete copy of the original thereof
submitted for recording or, if such certification is not available, together
with an Authorized Person's Certificate of the Seller stating that such document
has been sent to the appropriate public recording official for recordation), to
the Custodian on behalf of the Trustee within such 90-day period, the Seller
shall then deliver within 180 days after the Closing Date the recorded document
(or within such longer period after the Closing Date as the Custodian on behalf
of the Trustee may consent to, which consent shall not be withheld so long as
the Seller is, as certified in writing to the Custodian on behalf of the Trustee
no less often than monthly, in good faith attempting to obtain from the
appropriate county recorder's office such original or photocopy).
The Trustee, as assignee or transferee of the Purchaser, shall be
entitled to all scheduled payments of principal due thereon after the Cut-Off
Date, all other payments of principal collected after the Cut-Off Date (other
than scheduled payments of principal due on or before the Cut-Off Date), and all
payments of interest on the Mortgage Loans allocable to the period commencing on
the Cut-Off Date. All scheduled payments of principal and interest due on or
before the Cut-Off Date and collected after the Cut-Off Date shall belong to the
Seller.
Within 90 days following the Closing Date, the Seller shall deliver
and the Purchaser, the Custodian on behalf of the Trustee or the agents of
either may submit or cause to be submitted for recordation at the expense of the
Seller, in the appropriate public office for real property records, each
assignment referred to in clauses (d) and (f)(ii) above (with recording
information in blank if such information is not yet available). Within 15 days
following the Closing Date, the Seller shall deliver and the Purchaser, the
Custodian on behalf of the Trustee or the agents of either may submit or cause
to be submitted for filing, at the expense of the Seller, in the appropriate
public office for Uniform Commercial Code financing statements, the assignment
referred to in clause (i) above. If any such document or instrument is lost or
returned unrecorded or unfiled, as the case may be, because of a defect therein,
the Seller shall prepare a substitute therefor or cure such defect, and the
Seller shall, at its own expense (except in the case of a document or instrument
that is lost by the Trustee), record or file, as the case may be, and deliver
such document or instrument in accordance with this Section 2.
As to each Mortgage Loan secured by a Mortgaged Property with
respect to which the related Mortgagor has entered into a franchise agreement
and each Mortgage Loan secured by a Mortgaged Property with respect to which a
letter of credit is in place, the Seller shall provide a notice on or prior to
the date that is thirty (30) days after the Closing Date to the franchisor or
the issuing financial institution, as applicable, of the transfer of such
Mortgage Loan to the Trust pursuant to the Pooling and Servicing Agreement, and
inform such parties that any notices to the Mortgagor's lender pursuant to such
franchise agreement or letter of credit should thereafter be forwarded to the
Master Servicer and, with respect to each franchise agreement, provide a
franchise comfort letter to the franchisor on or prior to the date that is
thirty (30) days after the Closing Date. After the Closing Date, with respect to
any letter of credit that has not yet been assigned to the Trust, upon the
written request of the Master Servicer, the Seller will draw on such letter of
credit as directed by the Master Servicer in such notice to the extent the
Seller has the right to do so.
Documents that are in the possession of the Seller, its agents or
its subcontractors that relate to the servicing of any Mortgage Loans and that
are not required to be a part of the Mortgage File and are reasonably necessary
for the ongoing administration and/or servicing of the applicable Mortgage Loan
(the "Servicing File") shall be delivered by the Seller to or at the direction
of the Master Servicer, on behalf of the Purchaser, on or prior to the 75th day
after the Closing Date.
The Servicing File shall include, to the extent required to be (and
actually) delivered to the Seller pursuant to the applicable Mortgage Loan
documents, copies of the following items: the Mortgage Note, any Mortgage, the
Assignment of Leases and the Assignment of Mortgage, any guaranty/indemnity
agreement, any loan agreement, the insurance policies or certificates, as
applicable, the property inspection reports, any financial statements on the
property, any escrow analysis, the tax bills, the Appraisal, the environmental
report, the engineering report, the asset summary, financial information on the
Mortgagor/sponsor and any guarantors, any letters of credit, any intercreditor
agreements and any Environmental Insurance Policies; provided, however, the
Seller shall not be required to deliver any draft documents, attorney-client
privileged communications, internal correspondence or credit analysis. Each of
the foregoing items shall be delivered by the Seller in electronic form, to the
extent such document is available in such form and such form is reasonably
acceptable to the Master Servicer.
Upon the sale of the Mortgage Loans by the Seller to the Purchaser
pursuant to this Agreement, the ownership of each Mortgage Note, Mortgage and
the other contents of the related Mortgage File shall be vested in the Purchaser
and its assigns, and the ownership of all records and documents with respect to
the related Mortgage Loan prepared by or that come into the possession of the
Seller shall immediately vest in the Purchaser and its assigns, and shall be
delivered promptly by the Seller to or on behalf of either the Custodian (on
behalf of the Trustee) or the Master Servicer as set forth herein, subject to
the requirements of the Primary Servicing Agreement. The Seller's and
Purchaser's records shall reflect the transfer of each Mortgage Loan from the
Seller to the Purchaser and its assigns as a sale.
It is the express intent of the parties hereto that the conveyance
of the Mortgage Loans and related property to the Purchaser by the Seller as
provided in this Section 2 be, and be construed as, an absolute sale of the
Mortgage Loans and related property (other than the servicing rights thereto).
It is, further, not the intention of the parties that such conveyance be deemed
a pledge of the Mortgage Loans and related property 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 or any
related property are held to be the property of the Seller, or if for any other
reason this Agreement is held or deemed to create a security interest in the
Mortgage Loans or any related property, then:
(i) this Agreement shall be deemed to be a security agreement; and
(ii) the conveyance provided for in this Section 2 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, whether now owned or hereafter
acquired, in and to:
(A) All accounts, general intangibles, chattel paper,
instruments, documents, money, deposit accounts, certificates of
deposit, goods, letters of credit, advices of credit and investment
property consisting of, arising from or relating to any of the
following property: the Mortgage Loans identified on the Mortgage
Loan Schedule (other than the servicing rights thereto), including
the related Mortgage Notes, Mortgages, security agreements, and
title, hazard and other insurance policies, all distributions with
respect thereto payable after the Cut-Off Date, all substitute or
replacement Mortgage Loans and all distributions with respect
thereto, and the Mortgage Files;
(B) All accounts, general intangibles, chattel paper,
instruments, documents, money, deposit accounts, certificates of
deposit, goods, letters of credit, advices of credit, investment
property and other rights arising from or by virtue of the
disposition of, or collections with respect to, or insurance
proceeds payable with respect to, or claims against other Persons
with respect to, all or any part of the collateral described in
clause (A) above (including any accrued discount realized on
liquidation of any investment purchased at a discount); and
(C) All cash and non-cash proceeds of the collateral described
in clauses (A) and (B) above.
The possession by the Purchaser or its designee of the Mortgage
Notes, the Mortgages, and such other goods, letters of credit, advices of
credit, instruments, money, documents, chattel paper or certificated securities
shall be deemed to be possession by the secured party or possession by a
purchaser for purposes of perfecting the security interest pursuant to the
Uniform Commercial Code (including, without limitation, Sections 9-305 and 9-115
thereof) as in force in the relevant jurisdiction. Notwithstanding the
foregoing, the Seller makes no representation or warranty as to the perfection
of any such security interest.
Notifications to Persons holding such property, and acknowledgments,
receipts, or confirmations from persons holding such property, shall be deemed
to be notifications to, or acknowledgments, receipts or confirmations from,
securities intermediaries, bailees or agents of, or Persons holding for, the
Purchaser or its designee, as applicable, for the purpose of perfecting such
security interest under applicable law.
The Seller shall, to the extent consistent with this Agreement, take
such reasonable actions as may be necessary to ensure that, if this Agreement
were deemed to create a security interest in the property described above, 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 Agreement. In such case, the Seller shall file all filings necessary to
maintain the effectiveness of any original filings necessary under the Uniform
Commercial Code as in effect in any jurisdiction to perfect such security
interest in such property. In connection herewith, the Purchaser shall have all
of the rights and remedies of a secured party and creditor under the Uniform
Commercial Code as in force in the relevant jurisdiction.
Notwithstanding anything to the contrary contained herein, and
subject to Section 2(a), the Purchaser shall not be required to purchase any
Mortgage Loan as to which any Mortgage Note (endorsed as described in clause (a)
above) or lost note affidavit and indemnity required to be delivered to or on
behalf of the Trustee or the Master Servicer pursuant to this Section 2 on or
before the Closing Date is not so delivered, or is not properly executed or is
defective on its face, and the Purchaser's acceptance of the related Mortgage
Loan on the Closing Date shall in no way constitute a waiver of such omission or
defect or of the Purchaser's or its successors' and assigns' rights in respect
thereof pursuant to Section 5.
Section 3. Examination of Mortgage Files and Due Diligence Review.
The Seller shall (i) deliver to the Purchaser on or before the Closing Date a
diskette acceptable to the Purchaser that contains such information about the
Mortgage Loans as may be reasonably requested by the Purchaser, (ii) deliver to
the Purchaser investor files (collectively the "Collateral Information") with
respect to the assets proposed to be included in the Mortgage Pool and made
available at the Purchaser's headquarters in New York, and (iii) otherwise
reasonably cooperate fully with the Purchaser in its examination of the credit
files, underwriting documentation and Mortgage Files for the Mortgage Loans and
its due diligence review of the Mortgage Loans. The fact that the Purchaser has
conducted or has failed to conduct any partial or complete examination of the
credit files, underwriting documentation or Mortgage Files for the Mortgage
Loans shall not affect the right of the Purchaser or the Trustee to cause the
Seller to cure any Material Document Defect or Material Breach (each as defined
below), or to repurchase or replace the defective Mortgage Loans pursuant to
Section 5 of this Agreement.
On or prior to the Closing Date, the Seller shall allow
representatives of any of the Purchaser, each Underwriter, the Initial
Purchaser, the Trustee, the Custodian, the Special Servicer and each Rating
Agency to examine and audit all books, records and files pertaining to the
Mortgage Loans, the Seller's underwriting procedures and the Seller's ability to
perform or observe all of the terms, covenants and conditions of this Agreement.
Such examinations and audits shall take place at one or more offices of the
Seller during normal business hours and shall not be conducted in a manner that
is disruptive to the Seller's normal business operations upon reasonable prior
advance notice. In the course of such examinations and audits, the Seller will
make available to such representatives of any of the Purchaser, each
Underwriter, the Initial Purchaser, the Trustee, the Custodian, the Special
Servicer and each Rating Agency reasonably adequate facilities, as well as the
assistance of a sufficient number of knowledgeable and responsible individuals
who are familiar with the Mortgage Loans and the terms of this Agreement, and
the Seller shall cooperate fully with any such examination and audit in all
material respects. On or prior to the Closing Date, the Seller shall provide the
Purchaser with all material information regarding the Seller's financial
condition and access to knowledgeable financial or accounting officers for the
purpose of answering questions with respect to the Seller's financial condition,
financial statements as provided to the Purchaser or other developments
affecting the Seller's ability to consummate the transactions contemplated
hereby or otherwise affecting the Seller in any material respect. Within 45 days
after the Closing Date, the Seller shall provide the Master Servicer with any
additional information identified by the Master Servicer, as necessary to
complete the CMSA Property File, to the extent that such information is
available.
The Purchaser may exercise any of its rights hereunder through one
or more designees or agents; provided the Purchaser has provided the Seller with
prior notice of the identity of such designee or agent.
The Purchaser shall keep confidential any information regarding the
Seller and the Mortgage Loans that has been delivered into the Purchaser's
possession and that is not otherwise publicly available; provided, however, that
such information shall not be kept confidential (and the right to require
confidentiality under any confidentiality agreement is hereby waived) to the
extent such information is required to be included in the Memorandum or the
Prospectus Supplement or the Purchaser is required by law or court order to
disclose such information. If the Purchaser is required to disclose in the
Memorandum or the Prospectus Supplement confidential information regarding the
Seller as described in the preceding sentence, the Purchaser shall provide to
the Seller a copy of the proposed form of such disclosure prior to making such
disclosure and the Seller shall promptly, and in any event within two Business
Days, notify the Purchaser of any inaccuracies therein, in which case the
Purchaser shall modify such form in a manner that corrects such inaccuracies. If
the Purchaser is required by law or court order to disclose confidential
information regarding the Seller as described in the second preceding sentence,
the Purchaser shall notify the Seller and cooperate in the Seller's efforts to
obtain a protective order or other reasonable assurance that confidential
treatment will be accorded such information and, if in the absence of a
protective order or such assurance, the Purchaser is compelled as a matter of
law to disclose such information, the Purchaser shall, prior to making such
disclosure, advise and consult with the Seller and its counsel as to such
disclosure and the nature and wording of such disclosure and the Purchaser shall
use reasonable efforts to obtain confidential treatment therefor.
Notwithstanding the foregoing, if reasonably advised by counsel that the
Purchaser is required by a regulatory agency or court order to make such
disclosure immediately, then the Purchaser shall be permitted to make such
disclosure without prior review by the Seller.
Section 4. Representations and Warranties of the Seller and the
Purchaser.
(a) To induce the Purchaser to enter into this Agreement, the Seller
hereby makes for the benefit of the Purchaser and its assigns with respect to
each Mortgage Loan as of the date hereof (or as of such other date specifically
set forth in the particular representation and warranty) each of the
representations and warranties set forth on Exhibit 2 hereto, except as
otherwise set forth on Schedule A attached hereto, and hereby further represents
and warrants to the Purchaser as of the date hereof that:
(i) The Seller is duly organized and is validly existing as a
Canadian chartered bank acting through its branch located at Xxx Xxxxxxx
Xxxxx, Xxx Xxxx, Xxx Xxxx 00000-0000, is in good standing and has the
requisite power and authority and legal right to own the Mortgage Loans
and to transfer and convey the Mortgage Loans to the Purchaser and has the
requisite power and authority to execute and deliver, engage in the
transactions contemplated by, and perform and observe the terms and
conditions of, this Agreement.
(ii) This Agreement has been duly and validly authorized, executed
and delivered by the Seller, and assuming the due authorization, execution
and delivery hereof by the Purchaser, this Agreement constitutes the
valid, legal and binding agreement of the Seller, enforceable in
accordance with its terms, except as such enforcement may be limited by
(A) laws relating to bankruptcy, insolvency, reorganization, receivership
or moratorium, (B) other laws relating to or affecting the rights of
creditors generally, (C) general equity principles (regardless of whether
such enforcement is considered in a proceeding in equity or at law) or (D)
public policy considerations underlying the securities laws, to the extent
that such public policy considerations limit the enforceability of the
provisions of this Agreement that purport to provide indemnification from
liabilities under applicable securities laws.
(iii) No consent, approval, authorization or order of, registration
or filing with, or notice to, any governmental authority or court is
required, under federal or state law, for the execution, delivery and
performance of or compliance by the Seller with this Agreement, or the
consummation by the Seller of any transaction contemplated hereby, other
than (1) such qualifications as may be required under state securities or
blue sky laws, (2) the filing or recording of financing statements,
instruments of assignment and other similar documents necessary in
connection with the Seller's sale of the Mortgage Loans to the Purchaser,
(3) such consents, approvals, authorizations, qualifications,
registrations, filings or notices as have been obtained and (4) where the
lack of such consent, approval, authorization, qualification,
registration, filing or notice would not have a material adverse effect on
the performance by the Seller under this Agreement.
(iv) Neither the transfer of the Mortgage Loans to the Purchaser,
nor the execution, delivery or performance of this Agreement by the
Seller, conflicts or will conflict with, results or will result in a
breach of, or constitutes or will constitute a default under (A) any term
or provision of the Seller's articles of organization or by-laws, (B) any
term or provision of any material agreement, contract, instrument or
indenture to which the Seller is a party or by which it or any of its
assets is bound or results in the creation or imposition of any lien,
charge or encumbrance upon any of its property pursuant to the terms of
any such indenture, mortgage, contract or other instrument, other than
pursuant to this Agreement, or (C) after giving effect to the consents or
taking of the actions contemplated in subsection (iii), any law, rule,
regulation, order, judgment, writ, injunction or decree of any court or
governmental authority having jurisdiction over the Seller or its assets,
except where in any of the instances contemplated by clauses (B) or (C)
above, any conflict, breach or default, or creation or imposition of any
lien, charge or encumbrance, will not have a material adverse effect on
the consummation of the transactions contemplated hereby by the Seller or
materially and adversely affect its ability to perform its obligations and
duties hereunder or result in any material adverse change in the business,
operations, financial condition, properties or assets of the Seller, or in
any material impairment of the right or ability of the Seller to carry on
its business substantially as now conducted.
(v) There are no actions or proceedings against, or investigations
of, the Seller pending or, to the Seller's knowledge, threatened in
writing against the Seller before any court, administrative agency or
other tribunal, the outcome of which could reasonably be expected to
materially and adversely affect the transfer of the Mortgage Loans to the
Purchaser or the execution or delivery by, or enforceability against, the
Seller of this Agreement or have an effect on the financial condition of
the Seller that would materially and adversely affect the ability of the
Seller to perform its obligations under this Agreement.
(vi) On the Closing Date, the sale of the Mortgage Loans pursuant to
this Agreement will effect a transfer by the Seller of all of its right,
title and interest in and to the Mortgage Loans to the Purchaser.
(vii) To the Seller's knowledge, the Loan Seller Information (as
defined in that certain indemnification agreement, dated as of August 9,
2007, between the Seller, the Purchaser, the Underwriters and the Initial
Purchaser (the "Indemnification Agreement")) contained in the Disclosure
Information (as defined in the Indemnification Agreement) taken together
as a whole, as of the Time of Sale (as defined in the Indemnification
Agreement), and the Memorandum and the Prospectus Supplement, as of their
respective dates, (i) does not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements
therein, in the light of the circumstances under which they were made, not
misleading and (ii) (other than the Memorandum) complies with the
requirements of and contains all of the applicable information required by
Regulation AB (as defined in the Indemnification Agreement).
To induce the Purchaser to enter into this Agreement, the Seller
hereby covenants that the foregoing representations and warranties and those set
forth on Exhibit 2 hereto will be true and correct in all material respects on
and as of the Closing Date with the same effect as if made on the Closing Date,
provided that any representations and warranties made as of a specified date
shall be true and correct in all material respects as of such specified date.
Each of the representations, warranties and covenants made by the
Seller pursuant to this Section 4(a) shall survive the sale of the Mortgage
Loans and shall continue in full force and effect notwithstanding any
restrictive or qualified endorsement on the Mortgage Notes.
(b) To induce the Seller to enter into this Agreement, the Purchaser
hereby represents and warrants to the Seller as of the date hereof:
(i) The Purchaser is a corporation duly organized, validly existing,
and in good standing under the laws of the State of Delaware with full
power and authority to carry on its business as presently conducted by it.
(ii) The Purchaser has full power and authority to acquire the
Mortgage Loans, to execute and deliver this Agreement and to enter into
and consummate all transactions contemplated by this Agreement. The
Purchaser has duly and validly authorized the execution, delivery and
performance of this Agreement and has duly and validly executed and
delivered this Agreement. This Agreement, assuming due authorization,
execution and delivery by the Seller, constitutes the valid and binding
obligation of the Purchaser, enforceable against it in accordance with its
terms, except as such enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium and other similar laws affecting
the enforcement of creditors' rights generally and by general principles
of equity, regardless of whether such enforcement is considered in a
proceeding in equity or at law.
(iii) No consent, approval, authorization or order of, registration
or filing with, or notice to, any governmental authority or court is
required, under federal or state law, for the execution, delivery and
performance of or compliance by the Purchaser with this Agreement, or the
consummation by the Purchaser of any transaction contemplated hereby that
has not been obtained or made by the Purchaser.
(iv) Neither the purchase of the Mortgage Loans nor the execution,
delivery and performance of this Agreement by the Purchaser will violate
the Purchaser's certificate of incorporation or by-laws or constitute a
default (or an event that, with notice or lapse of time or both, would
constitute a default) under, or result in a breach of, any material
agreement, contract, instrument or indenture to which the Purchaser is a
party or that may be applicable to the Purchaser or its assets.
(v) The Purchaser's execution and delivery of this Agreement and its
performance and compliance with the terms of this Agreement will not
constitute a violation of, any law, rule, writ, injunction, order or
decree of any court, or order or regulation of any federal, state or
municipal government agency having jurisdiction over the Purchaser or its
assets, which violation could materially and adversely affect the
condition (financial or otherwise) or the operation of the Purchaser or
its assets or could materially and adversely affect its ability to perform
its obligations and duties hereunder.
(vi) There are no actions or proceedings against, or investigations
of, the Purchaser pending or, to the Purchaser's knowledge, threatened
against the Purchaser before any court, administrative agency or other
tribunal, the outcome of which could reasonably be expected to adversely
affect the transfer of the Mortgage Loans, the issuance of the
Certificates, the execution, delivery or enforceability of this Agreement
or have an effect on the financial condition of the Purchaser that would
materially and adversely affect the ability of the Purchaser to perform
its obligation under this Agreement.
(vii) The Purchaser has not dealt with any broker, investment
banker, agent or other person, other than the Seller, the Underwriters,
the Initial Purchaser and their respective affiliates, that may be
entitled to any commission or compensation in connection with the sale of
the Mortgage Loans or consummation of any of the transactions contemplated
hereby.
To induce the Seller to enter into this Agreement, the Purchaser
hereby covenants that the foregoing representations and warranties will be true
and correct in all material respects on and as of the Closing Date with the same
effect as if made on the Closing Date.
Each of the representations and warranties made by the Purchaser
pursuant to this Section 4(b) shall survive the purchase of the Mortgage Loans.
Section 5. Remedies Upon Breach of Representations and Warranties
Made by the Seller.
(a) It is hereby acknowledged that the Seller shall make for the
benefit of the Trustee on behalf of the holders of the Certificates, by way of
the Purchaser's assignment of its rights hereunder to the Trustee, the
representations and warranties set forth on Exhibit 2 hereto (each as of the
date hereof unless otherwise specified).
(b) It is hereby further acknowledged that if any document required
to be delivered to the Custodian on behalf of the Trustee pursuant to Section 2
is not delivered as and when required (and including the expiration of any grace
or cure period), is not properly executed or is defective on its face, or if
there is a breach of any of the representations and warranties required to be
made by the Seller regarding the characteristics of the Mortgage Loans and/or
the related Mortgaged Properties as set forth in Exhibit 2 hereto, and in either
case such defect or breach, either (i) materially and adversely affects the
interests of the holders of the Certificates in the related Mortgage Loan, or
(ii) both (A) the document defect or breach materially and adversely affects the
value of the Mortgage Loan and (B) the Mortgage Loan is a Specially Serviced
Mortgage Loan or Rehabilitated Mortgage Loan (such a document defect described
in the preceding clause (i) or (ii), a "Material Document Defect" and such a
breach described in the preceding clause (i) or (ii) a "Material Breach"), the
party discovering such Material Document Defect or Material Breach shall
promptly notify, in writing, the other party; provided that any breach of the
representation and warranty contained in paragraph (38) of such Exhibit 2 shall
constitute a Material Breach only if such prepayment premium or yield
maintenance charge is not deemed "customary" for commercial mortgage loans at
the time of origination as evidenced by (i) an opinion of tax counsel to such
effect or (ii) a determination by the Internal Revenue Service that such
provision is not customary. Promptly (but in any event within three Business
Days) upon becoming aware of any such Material Document Defect or Material
Breach, the Master Servicer shall, and the Special Servicer may, request that
the Seller, not later than 90 days from the Seller's receipt of the notice of
such Material Document Defect or Material Breach, cure such Material Document
Defect or Material Breach, as the case may be, in all material respects;
provided, however, that if such Material Document Defect or Material Breach, as
the case may be, cannot be corrected or cured in all material respects within
such 90-day period, and such Material Document Defect or Material Breach would
not cause the Mortgage Loan to be other than a "qualified mortgage" (as defined
in the Code), but the Seller is diligently attempting to effect such correction
or cure, as certified by the Seller in an Authorized Person's Certificate
delivered to the Trustee, then the cure period will be extended for an
additional 90 days unless, solely in the case of a Material Document Defect, (x)
the Mortgage Loan is, at the end of the initial 90-day period, a Specially
Serviced Mortgage Loan and a Servicing Transfer Event has occurred as a result
of a monetary default or as described in clause (ii) or clause (v) of the
definition of "Servicing Transfer Event" in the Pooling and Servicing Agreement
and (y) the Material Document Defect was identified in a certification delivered
to the Seller by the Trustee pursuant to Section 2.2 of the Pooling and
Servicing Agreement not less than 90 days prior to the delivery of the notice of
such Material Document Defect. The parties acknowledge that neither delivery of
a certification or schedule of exceptions to the Seller pursuant to Section 2.2
of the Pooling and Servicing Agreement or otherwise nor possession of such
certification or schedule by the Seller shall, in and of itself, constitute
delivery of notice of any Material Document Defect or knowledge or awareness by
the Seller of any Material Document Defect listed therein.
The Seller hereby covenants and agrees that, if any such Material
Document Defect or Material Breach cannot be corrected or cured in all material
aspects within the above cure periods, the Seller shall, on or before the
termination of such cure periods, either (i) repurchase the affected Mortgage
Loan or REO Mortgage Loan from the Purchaser or its assignee at the Purchase
Price as defined in the Pooling and Servicing Agreement, or (ii) if within the
two-year period commencing on the Closing Date, at its option replace, without
recourse, any Mortgage Loan or REO Mortgage Loan to which such defect relates
with a Qualifying Substitute Mortgage Loan. If such Material Document Defect or
Material Breach would cause the Mortgage Loan to be other than a "qualified
mortgage" (as defined in the Code), then notwithstanding the previous sentence,
such repurchase or substitution must occur within 90 days from the earlier of
the date the Seller discovered or was notified of the breach or defect. The
Seller agrees that any substitution shall be completed in accordance with the
terms and conditions of the Pooling and Servicing Agreement.
If (i) a Mortgage Loan is to be repurchased or replaced in
connection with a Material Document Defect or Material Breach as contemplated
above, (ii) such Mortgage Loan is cross-collateralized and cross-defaulted with
one or more other Mortgage Loans in the Trust and (iii) the applicable document
defect or breach does not constitute a Material Document Defect or Material
Breach, as the case may be, as to such other Mortgage Loans (without regard to
this paragraph), then the applicable document defect or breach (as the case may
be) shall be deemed to constitute a Material Document Defect or Material Breach,
as the case may be, as to each such other Mortgage Loan for purposes of the
above provisions, and the Seller shall be obligated to repurchase or replace
each such other Mortgage Loan in accordance with the provisions above, unless,
in the case of such breach or document defect, both of the following conditions
would be satisfied if the Seller were to repurchase or replace only those
Mortgage Loans as to which a Material Document Defect or Material Breach had
occurred without regard to this paragraph (the "Affected Loan(s)"): (1) the debt
service coverage ratio for all such other Mortgage Loans (excluding the Affected
Loan(s)) for the four calendar quarters immediately preceding the repurchase or
replacement (determined as provided in the definition of Debt Service Coverage
Ratio in the Pooling and Servicing Agreement, except that net cash flow for such
four calendar quarters, rather than year-end, shall be used) is equal to the
greater of (x) the debt service coverage ratio for all such Mortgage Loans
(including the Affected Loan(s)) set forth under the heading "NCF DSCR" in
Appendix II to the Final Prospectus Supplement and (y) 1.25x, and (2) the
Loan-to-Value Ratio for all such other Mortgage Loans (excluding the Affected
Loan(s)) is not greater than the lesser of (x) the current loan-to-value ratio
for all such Mortgage Loans (including the Affected Loan(s)) set forth under the
heading "Cut-Off Date LTV" in Appendix II to the Final Prospectus Supplement and
(y) 75%. The determination of the Master Servicer as to whether either of the
conditions set forth above has been satisfied shall be conclusive and binding in
the absence of manifest error. The Master Servicer will be entitled to cause, or
direct the Seller to cause, to be delivered to the Master Servicer at the
Seller's expense (i) an Appraisal of any or all of the related Mortgaged
Properties for purposes of determining whether the condition set forth in clause
(2) above has been satisfied, in each case at the expense of the Seller if the
scope and cost of the Appraisal is approved by the Seller (such approval not to
be unreasonably withheld) and (ii) an Opinion of Counsel that not requiring the
repurchase of each such Cross-Collateralized Loan will not result in an Adverse
REMIC Event.
With respect to any Mortgage Loan that is cross-defaulted and/or
cross-collateralized with any other Mortgage Loan conveyed hereunder, to the
extent that the Seller is required to repurchase or substitute for such Mortgage
Loan (each, a "Repurchased Loan") in the manner prescribed above while the
Trustee (as assignee of the Purchaser) continues to hold any other Mortgage Loan
that is cross-collateralized and/or cross-defaulted (each, a
"Cross-Collateralized Loan") with such Repurchased Loan, the Seller and the
Purchaser hereby agree to modify, prior to such repurchase or substitution, the
related Mortgage Loan documents in a manner such that such affected Repurchased
Loan, on the one hand, and any related Crossed-Collateralized Loans held by the
Trustee, on the other, would no longer be cross-defaulted or
cross-collateralized with one another; provided that the Seller shall have
furnished the Trustee, at the expense of the Seller, a nondisqualification
opinion that such modification shall not cause an Adverse REMIC Event; provided,
further, that if such nondisqualification opinion cannot be furnished, the
Seller and the Purchaser agree that such repurchase or substitution of only the
Repurchased Loan, notwithstanding anything to the contrary herein, shall not be
permitted and the Seller shall repurchase or substitute for the Repurchased Loan
and all related Crossed-Collateralized Loans. Any reserve or other cash
collateral or letters of credit securing the Cross-Collateralized Loans shall be
allocated between such Mortgage Loans in accordance with the Mortgage Loan
documents. All other terms of the Mortgage Loans shall remain in full force and
effect, without any modification thereof.
Upon occurrence (and after any applicable cure or grace period), any
of the following document defects shall be conclusively presumed materially and
adversely to affect the interests of Certificateholders in a Mortgage Loan and
be a Material Document Defect: (i) the absence from the Mortgage File of the
original signed Mortgage Note, unless the Mortgage File contains a signed lost
note affidavit and indemnity and a copy of the Mortgage Note; (ii) the absence
from the Mortgage File of the item called for by paragraph (b) of the definition
of Mortgage File; or (iii) the absence from the Mortgage File of the item called
for by paragraph (h) of the definition of Mortgage File. If any of the foregoing
Material Document Defects is discovered by the Custodian (or the Trustee if
there is no Custodian), the Trustee (or as set forth in Section 2.3(a) of the
Pooling and Servicing Agreement, the Master Servicer) will take the steps
described elsewhere in this Section, including the giving of notices to the
Rating Agencies and the parties hereto and making demand upon the Seller for the
cure of the Material Document Defect or repurchase or replacement of the related
Mortgage Loan.
If the Seller disputes that a Material Document Defect or Material
Breach exists with respect to a Mortgage Loan or otherwise refuses (i) to effect
a correction or cure of such Material Document Defect or Material Breach, (ii)
to repurchase the Affected Loan from the Trust or (iii) to replace such Mortgage
Loan with a Qualifying Substitute Mortgage Loan, then provided that (x) the
period of time provided for the Seller to correct, repurchase or cure has
expired and (y) the Mortgage Loan is then in default and is then a Specially
Serviced Mortgage Loan, the Special Servicer may, subject to the Servicing
Standard, modify, work-out or foreclose, sell or otherwise liquidate (or permit
the liquidation of) the Mortgage Loan pursuant to Section 9.5, Section 9.12,
Section 9.15 and Section 9.36, as applicable, of the Pooling and Servicing
Agreement, while pursuing the repurchase claim. The Seller acknowledges and
agrees that any modification of the Mortgage Loan pursuant to such a work-out
shall not constitute a defense to any repurchase claim nor shall such
modification or work-out change the Purchase Price due from the Seller for any
repurchase claim. Any sale of the Mortgage Loan, or foreclosure upon such
Mortgage Loan and sale of the REO Property, to a Person other than the Seller
shall be without (i) recourse of any kind (either express or implied) by such
Person against the Seller and (ii) representation or warranty of any kind
(either express or implied) by the Seller to or for the benefit of such Person.
The fact that a Material Document Defect or Material Breach is not
discovered until after foreclosure (but in all instances prior to the sale of
the related REO Property or Mortgage Loan) shall not prejudice any claim against
the Seller for repurchase of the REO Mortgage Loan or REO Property. In such an
event, the Master Servicer or Special Servicer, as applicable, shall be required
to notify the Seller of the discovery of the Material Document Defect or
Material Breach and the Seller shall be required to follow the procedures set
forth in this Agreement to correct or cure such Material Document Defect or
Material Breach or purchase the REO Property at the Purchase Price. If the
Seller fails to correct or cure the Material Document Defect or Material Breach
or purchase the REO Property, then the provisions above regarding notice of
offers related to such REO Property and the Seller's right to purchase such REO
Property shall apply. If a court of competent jurisdiction issues a final order
that the Seller is or was obligated to repurchase the related Mortgage Loan or
REO Mortgage Loan or the Seller otherwise accepts liability, then, after the
expiration of any applicable appeal period, but in no event later than the
termination of the Trust pursuant to Section 9.30 of the Pooling and Servicing
Agreement, the Seller will be obligated to pay to the Trust the difference
between any Liquidation Proceeds received upon such liquidation (including those
arising from any sale to the Seller) and the Purchase Price; provided that the
prevailing party in such action shall be entitled to recover all costs, fees and
expenses (including reasonable attorneys' fees) related thereto.
In connection with any liquidation or sale of a Mortgage Loan or REO
Property as described above, the Special Servicer will not receive a Liquidation
Fee in connection with such liquidation or sale or any portion of the Work-Out
Fee that accrues after the Seller receives notice of a Material Document Defect
or Material Breach until a final determination has been made, as set forth in
the prior paragraph, as to whether the Seller is or was obligated to repurchase
such related Mortgage Loan or REO Property. Upon such determination, the Special
Servicer will be entitled: (i) with respect to a determination that the Seller
is or was obligated to repurchase, to collect a Liquidation Fee, if due in
accordance with the definition thereof, based upon the full Purchase Price of
the related Mortgage Loan or REO Property, with such Liquidation Fee payable by
the Seller or (ii) with respect to a determination that Seller is not or was not
obligated to repurchase (or the Trust decides that it will no longer pursue a
claim against the Seller for repurchase), (A) to collect a Liquidation Fee based
upon the Liquidation Proceeds as received upon the actual sale or liquidation of
such Mortgage Loan or REO Property, and (B) to collect any accrued and unpaid
Work-Out Fee, based on amounts that were collected for as long as the related
Mortgage Loan was a Rehabilitated Mortgage Loan, in each case with such amount
to be paid from amounts in the Certificate Account.
The obligations of the Seller set forth in this Section 5(b) to cure
a Material Document Defect or a Material Breach or repurchase or replace a
defective Mortgage Loan constitute the sole remedies of the Purchaser or its
assignees with respect to a Material Document Defect or Material Breach in
respect of an outstanding Mortgage Loan; provided, that this limitation shall
not in any way limit the Purchaser's rights or remedies upon breach of any other
representation or warranty or covenant by the Seller set forth in this Agreement
(other than those set forth in Exhibit 2).
Notwithstanding the foregoing, in the event that there is a breach
of the representation and warranty set forth in paragraph 41 of Exhibit 2
attached hereto because the underlying loan documents do not provide for the
payment by the Mortgagor of reasonable costs and expenses associated with the
defeasance or assumption of a Mortgage Loan by the Mortgagor, the Seller hereby
covenants and agrees to pay such reasonable costs and expenses, to the extent an
amount is due and not paid by the related Mortgagor. The parties hereto
acknowledge that the payment of such reasonable costs and expenses shall be the
Seller's sole obligation with respect to the breaches discussed in the previous
sentence. The Seller shall have no obligation to pay for any of the foregoing
costs if the applicable Mortgagor has an obligation to pay for such costs.
The Seller hereby agrees that it will pay for any expense incurred
by the applicable Master Servicer or the Special Servicer, as applicable, in
connection with modifying a Mortgage Loan pursuant to Section 2.3 of the Pooling
and Servicing Agreement in order for such Mortgage Loan to be a "qualified
substitute mortgage loan" within the meaning of the Treasury Regulations
promulgated under the Code. Upon a breach of the representation and warranty set
forth in paragraph 37 of Exhibit 2 attached hereto, if such Mortgage Loan is
modified so that it becomes a "qualified substitute mortgage loan", such breach
will be cured and the Seller will not be obligated to repurchase or otherwise
remedy such breach.
(c) The Pooling and Servicing Agreement shall provide that the
Trustee (or the applicable Master Servicer or the Special Servicer on its
behalf) shall give written notice within three Business Days) to the Seller of
its discovery of any Material Document Defect or Material Breach and prompt
written notice to the Seller in the event that any Mortgage Loan becomes a
Specially Serviced Mortgage Loan (as defined in the Pooling and Servicing
Agreement).
(d) If the Seller repurchases any Mortgage Loan pursuant to this
Section 5, the Purchaser or its assignee, following receipt by the Trustee of
the Purchase Price therefor, promptly shall deliver or cause to be delivered to
the Seller all Mortgage Loan documents with respect to such Mortgage Loan, and
each document that constitutes a part of the Mortgage File that was endorsed or
assigned to the Trustee shall be endorsed and assigned to the Seller in the same
manner such that the Loan Seller shall be vested with legal and beneficial title
to such Mortgage Loan, in each case without recourse, including any property
acquired in respect of such Mortgage Loan or proceeds of any insurance policies
with respect thereto.
Section 6. Closing. The closing of the sale of the Mortgage Loans
shall be held at the offices of Cadwalader, Xxxxxxxxxx & Xxxx LLP, Xxx Xxxxx
Xxxxxxxxx Xxxxxx, Xxx Xxxx, XX 00000 at 9:00 a.m., New York time, on the Closing
Date.
The obligation of the Seller and the Purchaser to close shall be
subject to the satisfaction of each of the following conditions on or prior to
the Closing Date:
(a) All of the representations and warranties of the Seller and the
Purchaser specified in Section 4 of this Agreement (including, without
limitation, the representations and warranties set forth on Exhibit 2 to this
Agreement) shall be true and correct as of the Closing Date, provided that any
representations and warranties made as of a specified date shall be true and
correct as of such specified date.
(b) All Closing Documents specified in Section 7 of this Agreement,
in such forms as are agreed upon and reasonably acceptable to the Seller or the
Purchaser, as applicable, shall be duly executed and delivered by all
signatories as required pursuant to the respective terms thereof.
(c) The Seller shall have delivered and released to the Purchaser or
its designee all documents required to be delivered to the Purchaser as of the
Closing Date pursuant to Section 2 of this Agreement.
(d) The result of the examination and audit performed by the
Purchaser and its affiliates pursuant to Section 3 hereof shall be satisfactory
to the Purchaser and its affiliates in their sole determination and the parties
shall have agreed to the form and contents of the Loan Seller Information (as
defined in the Indemnification Agreement) to be disclosed in the Memorandum and
the Prospectus Supplement.
(e) All other terms and conditions of this Agreement required to be
complied with on or before the Closing Date shall have been complied with, and
the Seller and the Purchaser shall have the ability to comply with all terms and
conditions and perform all duties and obligations required to be complied with
or performed after the Closing Date.
(f) The Seller shall have paid all fees and expenses payable by it
to the Purchaser pursuant to Section 8 hereof.
(g) The Certificates to be so rated shall have been assigned ratings
by each Rating Agency no lower than the ratings specified for each such Class in
the Memorandum and the Prospectus Supplement.
(h) No Underwriter shall have terminated the Underwriting Agreement
and the Initial Purchaser shall not have terminated the Certificate Purchase
Agreement, and neither the Underwriters nor the Initial Purchaser shall have
suspended, delayed or otherwise cancelled the Closing Date.
(i) The Seller shall have received the purchase price for the
Mortgage Loans pursuant to Section 1 hereof.
Each party agrees to use its best efforts to perform its respective
obligations hereunder in a manner that will enable the Purchaser to purchase the
Mortgage Loans on the Closing Date.
Section 7. Closing Documents. The Closing Documents shall consist of
the following:
(a) This Agreement duly executed by the Purchaser and the Seller.
(b) A certificate of the Seller, executed by a duly authorized
officer of the Seller and dated the Closing Date, and upon which the Purchaser
and its successors and assigns may rely, to the effect that: (i) the
representations and warranties of the Seller in this Agreement are true and
correct in all material respects on and as of the Closing Date with the same
force and effect as if made on the Closing Date, provided that any
representations and warranties made as of a specified date shall be true and
correct as of such specified date; and (ii) the Seller has complied with all
agreements and satisfied all conditions on its part to be performed or satisfied
on or prior to the Closing Date.
(c) True, complete and correct copies of the Seller's articles of
organization and by-laws.
(d) A certificate of confirmation for the Seller issued by Canada's
Office of the Superintendent of Financial Institutions and a certificate of
licensing of the Seller issued by the Comptroller of the Currency of the United
States dated not earlier than 30 days prior to the Closing Date.
(e) A certificate of an Authorized Person, dated the Closing Date,
and upon which the Purchaser may rely, to the effect that each individual who,
as an officer or representative of the Seller, signed this Agreement or any
other document or certificate delivered on or before the Closing Date in
connection with the transactions contemplated herein, was at the respective
times of such signing and delivery, and is as of the Closing Date, duly elected
or appointed, qualified and acting as such officer or representative, and the
signatures of such persons appearing on such documents and certificates are
their genuine signatures.
(f) An opinion of counsel (which, other than as to the opinion
described in paragraph (vi) below, may be in-house counsel) to the Seller, dated
the Closing Date, substantially to the effect of the following (with such
changes and modifications as the Purchaser may approve and subject to such
counsel's reasonable qualifications):
(i) The Seller is validly existing under Canadian law and has full
corporate power and authority to enter into and perform its obligations
under this Agreement.
(ii) This Agreement has been duly authorized, executed and delivered
by the Seller.
(iii) No consent, approval, authorization or order of any federal
court or governmental agency or body is required for the consummation by
the Seller of the transactions contemplated by the terms of this Agreement
except any approvals as have been obtained.
(iv) Neither the execution, delivery or performance of this
Agreement by the Seller, nor the consummation by the Seller of any of the
transactions contemplated by the terms of this Agreement (A) conflicts
with or results in a breach or violation of, or constitutes a default
under, the organizational documents of the Seller, (B) to the knowledge of
such counsel, constitutes a default under any term or provision of any
material agreement, contract, instrument or indenture, to which the Seller
is a party or by which it or any of its assets is bound or results in the
creation or imposition of any lien, charge or encumbrance upon any of its
property pursuant to the terms of any such indenture, mortgage, contract
or other instrument, other than pursuant to this Agreement, or (C)
conflicts with or results in a breach or violation of any law, rule,
regulation, order, judgment, writ, injunction or decree of any court or
governmental authority having jurisdiction over the Seller or its assets,
except where in any of the instances contemplated by clauses (B) or (C)
above, any conflict, breach or default, or creation or imposition of any
lien, charge or encumbrance, will not have a material adverse effect on
the consummation of the transactions contemplated hereby by the Seller or
materially and adversely affect its ability to perform its obligations and
duties hereunder or result in any material adverse change in the business,
operations, financial condition, properties or assets of the Seller, or in
any material impairment of the right or ability of the Seller to carry on
its business substantially as now conducted.
(v) To his or her knowledge, there are no legal or governmental
actions, investigations or proceedings pending to which the Seller is a
party, or threatened against the Seller, (a) asserting the invalidity of
this Agreement or (b) which materially and adversely affect the
performance by the Seller of its obligations under, or the validity or
enforceability of, this Agreement.
(vi) This Agreement is a valid, legal and binding agreement of the
Seller, enforceable against the Seller in accordance with its terms,
except as such enforcement may be limited by (1) laws relating to
bankruptcy, insolvency, reorganization, receivership or moratorium, (2)
other laws relating to or affecting the rights of creditors generally, (3)
general equity principles (regardless of whether such enforcement is
considered in a proceeding in equity or at law) or (4) public policy
considerations underlying the securities laws, to the extent that such
public policy considerations limit the enforceability of the provisions of
this Agreement that purport to provide indemnification from liabilities
under applicable securities laws.
Such opinion may express its reliance as to factual matters on,
among other things specified in such opinion, the representations and warranties
made by, and on certificates or other documents furnished by officers of, the
parties to this Agreement.
In rendering the opinions expressed above, such counsel may limit
such opinions to matters governed by the federal laws of the United States, and
the laws of the states thereof, and the banking laws of Canada, and the laws of
the provinces and territories thereof, as applicable.
(g) Such other opinions of counsel as any Rating Agency may request
in connection with the sale of the Mortgage Loans by the Seller to the Purchaser
or the Seller's execution and delivery of, or performance under, this Agreement.
(h) A letter from Deloitte & Touche LLP, certified public
accountants, dated August 9, 2007, to the effect that they have performed
certain specified procedures as a result of which they determined that certain
information of an accounting, financial or statistical nature set forth in the
Memorandum and the Prospectus Supplement agrees with the records of the Seller.
(i) Such further certificates, opinions and documents as the
Purchaser may reasonably request.
(j) An officer's certificate of the Purchaser, dated as of the
Closing Date, with the resolutions of the Purchaser authorizing the transactions
described herein attached thereto, together with certified copies of the
charter, by-laws.
(k) Such other certificates of the Purchaser's officers or others
and such other documents to evidence fulfillment of the conditions set forth in
this Agreement as the Seller or its counsel may reasonably request.
(l) An executed Xxxx of Sale in the form attached hereto as Exhibit
3.
Section 8. Costs. The Seller shall pay the Purchaser the costs and
expenses as agreed upon by the Seller and the Purchaser in a separate Letter of
Understanding dated August 9, 2007.
Section 9. Exchange Act Reporting Information. The Seller hereby
agrees to deliver to the Purchaser and the Trustee any disclosure information
relating to any event specifically related to the Seller reasonably determined
in good faith by the Purchaser as required to be reported on Form 8-K, Form 10-D
or Form 10-K by the Trust (in formatting reasonably appropriate for inclusion in
such form), including, without limitation, the disclosure required under Items
1117 and 1119 of Regulation AB and Item 1.03 to Form 8-K. The Seller shall use
its best efforts to deliver proposed disclosure language relating to any event
described under Items 1117 and 1119 of Regulation AB and Item 1.03 to Form 8-K
to the Trustee and the Purchaser within one Business Day and in any event no
later than two Business Days of the Seller becoming aware of such event and
shall provide disclosure relating to any other event reasonably determined by
the Purchaser as required to be disclosed on Form 8-K, Form 10-D or Form 10-K
within two Business Days following the Purchaser's request for such disclosure
language. The obligation of the Seller to provide the above-referenced
disclosure materials will terminate upon notice or other written confirmation
from the Purchaser or the Trustee that the Trustee has filed a Form 15 with
respect to the Trust as to that fiscal year in accordance with Section 13.8 of
the Pooling and Servicing Agreement or the reporting requirements with respect
to the Trust under the Securities Exchange Act of 1934, as amended, have
otherwise been automatically suspended. The Seller hereby acknowledges that the
information to be provided by it pursuant to this Section will be used in the
preparation of reports meeting the reporting requirements of the Trust under
Section 13(a) and/or Section 15(d) of the Securities Exchange Act of 1934, as
amended.
Section 10. Notices. All communications provided for or permitted
hereunder shall be in writing and shall be deemed to have been duly given if (a)
personally delivered, (b) mailed by registered or certified mail, postage
prepaid and received by the addressee, (c) sent by express courier delivery
service and received by the addressee, or (d) transmitted by telex or facsimile
transmission (or any other type of electronic transmission agreed upon by the
parties) and confirmed by a writing delivered by any of the means described in
(a), (b) or (c), if (i) to the Purchaser, addressed to Xxxxxx Xxxxxxx Capital I
Inc., 0000 Xxxxxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: Xxxxxx Xxxxxx, with a
copy to Xxxxxxx Xxxxxx (or such other address as may hereafter be furnished in
writing by the Purchaser), or (ii) if to the Seller, addressed to the Seller at
Royal Bank of Canada, Xxx Xxxxxxx Xxxxx, 0xx Xxxxx, Xxx Xxxx, XX 00000-0000,
Attention: Xxxx Xxxxxxx, facsimile number (000) 000-0000, with a copy to Seller
at 00000 Xxxxxxx Xxxx, Xxxxx 000, Xxxxxx, Xxxxx 00000, Attention: Xxxxx Xxxxxx,
facsimile number (000) 000-0000.
Section 11. Severability of Provisions. Any part, provision,
representation, warranty or covenant of this Agreement that is prohibited or
that 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, warranty or covenant of
this Agreement that 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 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 12. Further Assurances. The Seller and the Purchaser each
agree to execute and deliver such instruments and take such actions as the other
may, from time to time, reasonably request in order to effectuate the purpose
and to carry out the terms of this Agreement and the Pooling and Servicing
Agreement.
Section 13. Survival. Each party hereto agrees that the
representations, warranties and agreements made by it herein and in any
certificate or other instrument delivered pursuant hereto shall be deemed to be
relied upon by the other party, notwithstanding any investigation heretofore or
hereafter made by the other party or on its behalf, and that the
representations, warranties and agreements made by such other party herein or in
any such certificate or other instrument shall survive the delivery of and
payment for the Mortgage Loans and shall continue in full force and effect,
notwithstanding any restrictive or qualified endorsement on the Mortgage Notes
and notwithstanding subsequent termination of this Agreement.
Section 14. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS, DUTIES,
OBLIGATIONS AND RESPONSIBILITIES OF THE PARTIES HERETO SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS AND DECISIONS OF THE STATE OF NEW
YORK. THE PARTIES HERETO INTEND THAT THE PROVISIONS OF SECTION 5-1401 OF THE NEW
YORK GENERAL OBLIGATIONS LAW SHALL APPLY TO THIS AGREEMENT.
Section 15. Benefits of Mortgage Loan Purchase Agreement. This
Agreement shall inure to the benefit of and shall be binding upon the Seller,
the Purchaser and their respective successors, legal representatives, and
permitted assigns, and nothing expressed or mentioned in this Agreement is
intended or shall be construed to give any other person any legal or equitable
right, remedy or claim under or in respect of this Agreement, or any provisions
herein contained, this Agreement and all conditions and provisions hereof being
intended to be and being for the sole and exclusive benefit of such persons and
for the benefit of no other person except that (a) each Underwriter shall be a
third party beneficiary of the Seller's representations and warranties set forth
in Section 4(a)(vii) and (b) the rights and obligations of the Purchaser
pursuant to Sections 2, 4(a) (other than clause (vii)), 5, 11 and 12 hereof may
be assigned to the Trustee as may be required to effect the purposes of the
Pooling and Servicing Agreement and, upon such assignment, the Trustee shall
succeed to the rights and obligations hereunder of the Purchaser. No owner of a
Certificate issued pursuant to the Pooling and Servicing Agreement shall be
deemed a successor or permitted assigns because of such ownership.
Section 16. Miscellaneous. This Agreement may be executed in two or
more counterparts, each of which when so executed and delivered shall be an
original, but all of which together shall constitute one and the same
instrument. Neither this Agreement nor any term hereof may be changed, waived,
discharged or terminated orally, but only by an instrument in writing signed by
the party against whom enforcement of the change, waiver, discharge or
termination is sought. The headings in this Agreement are for purposes of
reference only and shall not limit or otherwise affect the meaning hereof. The
rights and obligations of the Seller under this Agreement shall not be assigned
by the Seller without the prior written consent of the Purchaser, except that
any person into which the Seller may be merged or consolidated, or any
corporation resulting from any merger, conversion or consolidation to which the
Seller is a party, or any person succeeding to the entire business of the Seller
shall be the successor to the Seller hereunder.
Section 17. Entire Agreement. This Agreement contains the entire
agreement and understanding between the parties hereto with respect to the
subject matter hereof (other than the Letter of Understanding, the
Indemnification Agreement and the Pooling and Servicing Agreement), 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. The express terms hereof control and
supersede any course of performance or usage of the trade inconsistent with any
of the terms hereof.
IN WITNESS WHEREOF, the Purchaser and the Seller have caused this
Agreement to be executed by their respective duly authorized officers as of the
date first above written.
ROYAL BANK OF CANADA
By: /s/ Xxxx Xxxxxxx
-------------------------------------
Name: Xxxx Xxxxxxx
Title: Authorized Signatory
XXXXXX XXXXXXX CAPITAL I INC.
By: /s/ Xxxxxxx X. Xxxxxx
-------------------------------------
Name: Xxxxxxx X. Xxxxxx
Title: Executive Director
EXHIBIT 1
MORTGAGE LOAN SCHEDULE
APPENDIX II
CERTAIN CHARACTERISTICS OF THE MORTGAGE LOANS
Mortgage Loan No. CMSA Loan No. CMSA Property No. Mortgage Loan Seller(1)
----------------- ------------- ----------------- -----------------------
10
10 10-001 RBC
10 10-002 RBC
10 10-003 RBC
10 10-004 RBC
10 10-005 RBC
11 11 11-001 RBC
17 17 17-001 RBC
21 21 21-001 RBC
24 24 24-001 RBC
32 32 32-001 RBC
36 36 36-001 RBC
38 38 38-001 RBC
41 41 41-001 RBC
44 44 44-001 RBC
50 50 50-001 RBC
51 51 51-001 RBC
52 52 52-001 RBC
56 56 56-001 RBC
57 57 57-001 RBC
67 67 67-001 RBC
68 68 68-001 RBC
69 69 69-001 RBC
72 72 72-001 RBC
73 73 73-001 RBC
74 74 74-001 RBC
78 78 78-001 RBC
79 79 79-001 RBC
82 82 82-001 RBC
87 87 87-001 RBC
88 88 88-001 RBC
91 91 91-001 RBC
92 92 92-001 RBC
95 95 95-001 RBC
99 99 99-001 RBC
106 106 106-001 RBC
110 110 110-001 RBC
115 115 115-001 RBC
128 128 128-001 RBC
Mortgage Loan No. Property Name(2) Loan Group Cross-Collateralization(2) Original Balance
----------------- ------------------------------------ ---------- -------------------------- ----------------
Xxxxxxx Portfolio Roll-Up $65,000,000
00 Xxxxxx Xxxxx (VI) 2 No $27,902,000
10 Camellia Trace (VI) 2 No $15,760,000
10 Northridge (VI) 2 No $11,250,000
10 Cedarwood (VI) 2 No $6,885,000
10 Whispering Oaks (VI) 2 No $3,203,000
11 Metroplex 1 No $48,000,000
17 Steadfast Heritage 1 No $37,500,000
21 Lynnwood 1 No $22,168,000
24 Nantucket Self Storage 1 No $20,000,000
32 Xxxxxxxx Self Storage 1 No $15,000,000
36 Jonesboro 1 No $13,700,000
38 Ahwatukee Xxxxxxx 1 No $13,483,000
41 Colony Bay Apartments 2 No $11,900,000
44 Evergreen - IH 10 & Floresville 1 No $10,800,000
50 Firewheel Village 1 No $10,400,000
51 Woodcreek Village 1 No $10,300,000
00 Xxxxxxxxx Xxxxx Xxxx 1 No $10,191,000
56 Provinces 1 No $9,585,000
57 The Shoppes At Xxxxxx 1 No $9,300,000
67 Hampton Suites 1 No $7,500,000
68 Beechgrove 2 No $7,500,000
69 Kohl's Shopping Center 1 No $7,000,000
72 Holiday Inn Express- Costa Mesa 1 No $6,750,000
73 Amber Valley Retail Center 1 No $6,150,000
74 Caliente Springs RV and Self Storage 1 No $6,000,000
78 Siete Shopping Center 1 No $5,023,000
79 Bridgeview 1 No $4,600,000
82 Walkersville Self Storage 1 No $4,400,000
87 Devon Ocala 1 No $4,025,000
88 Evergreen -Fair Oaks West 1 No $4,000,000
91 Park Oakhurst A/C Self Storage 1 No $3,700,000
92 Lanco Mini Storage 1 No $3,500,000
95 Xxxxx Xxxxx Mountain 1 No $3,408,000
99 Century 21 1 No $3,300,000
106 Planet Self Storage 1 No $3,000,000
110 Peakview Self Storage 1 No $2,920,000
000 Xxxxxxxxxxxx Xxxxxxxxxxx 1 No $2,800,000
128 Xxxxx Xxxxxxxx 1 No $1,550,000
Mortgage Loan No. Cut-Off Date Balance(3) NOI DSCR(4) NCF DSCR(4) Cut-Off Date LTV Balloon LTV
----------------- ----------------------- ----------- ----------- ---------------- -----------
$65,000,000 1.43 1.37 80.0% 80.0%
10 $27,902,000 1.43 1.37 80.0% 80.0%
10 $15,760,000 1.43 1.37 80.0% 80.0%
10 $11,250,000 1.43 1.37 80.0% 80.0%
10 $6,885,000 1.43 1.37 80.0% 80.0%
10 $3,203,000 1.43 1.37 80.0% 80.0%
11 $48,000,000 1.35 1.29 73.2% 73.2%
17 $37,500,000 1.29 1.22 76.2% 76.2%
21 $22,168,000 1.33 1.27 77.9% 77.9%
24 $20,000,000 1.39 1.38 79.7% 79.7%
32 $15,000,000 1.45 1.21 78.8% 73.5%
36 $13,700,000 1.41 1.38 78.3% 78.3%
38 $13,483,000 1.20 1.14 77.9% 77.9%
41 $11,900,000 1.66 1.48 75.8% 75.8%
44 $10,800,000 1.37 1.12 77.3% 74.6%
50 $10,400,000 1.48 1.36 80.0% 80.0%
51 $10,300,000 1.41 1.35 79.2% 79.2%
52 $10,191,000 1.31 1.22 77.2% 77.2%
56 $9,585,000 1.26 1.18 77.2% 77.2%
57 $9,300,000 1.49 1.18 62.8% 57.9%
67 $7,500,000 2.36 1.77 59.1% 55.2%
68 $7,493,800 1.37 1.25 74.8% 63.6%
69 $7,000,000 1.66 1.22 68.0% 63.2%
72 $6,750,000 1.54 1.31 75.0% 66.6%
73 $6,150,000 1.56 1.20 74.5% 68.7%
74 $6,000,000 1.29 1.11 55.7% 50.8%
78 $5,023,000 1.54 1.18 75.5% 68.2%
79 $4,591,027 1.34 1.21 76.5% 64.6%
82 $4,400,000 1.31 1.10 65.5% 59.7%
87 $4,021,871 1.59 1.55 63.3% 57.6%
88 $4,000,000 1.37 1.08 79.4% 76.4%
91 $3,700,000 1.26 1.03 79.6% 71.8%
92 $3,500,000 1.32 1.06 79.7% 71.8%
95 $3,401,765 1.45 1.39 66.3% 56.5%
99 $3,300,000 1.78 1.47 63.5% 59.5%
106 $3,000,000 1.30 1.04 50.3% 45.5%
110 $2,920,000 1.54 1.25 78.3% 69.2%
115 $2,800,000 2.04 1.63 55.7% 51.0%
128 $1,548,719 1.43 1.37 75.2% 68.1%
Mortgage Loan No. Street Address
----------------- -----------------------------------------------------------------------------------
10 000 Xxxxxx Xx
10 000 Xxxxx Xxxxx
10 00 Xxxxxxxxxxxxx Xxxxxx
00 000X Xxxxxx Xx
00 0000 Xxxxxxxx Xxxxxx
11 7340 & 0000 Xxxxxxx Xxxx
17 0000 Xxxxxxxxxx Xxxxxx XX
21 0000 Xxxxxxxxx Xxxx Xxxx.
24 6 Sun Island Drive
32 0000 Xxxxxxxx Xxxx.
36 0000 Xxxx Xxxxxxxx xxx 0000-0000 Xxxx Xxxxxxxx
38 4747 East Elliot
41 0000 Xxxxxxxxx Xxxx
44 512 10th Street/1802 B Street, 25300 IH 10 West, 00000 XX 00 Xxxx, 00000 XX 00 Xxxx
00 0000 Xxxxx Xxxxx
51 0000 Xxxxxxxxx Xxxx Xxxx
52 000 X Xxxxxxxxx Xxxxxxxxx
56 0000 Xxxx Xxx Xxxx
57 4323,4265,4281,4151 45th St
67 00000 Xxxx Xxxxx Xxxxxx
68 0000 Xxxx Xxxxx
69 0000 Xxxxxxxx Xxx.
72 0000 Xxxxxxx Xxxxxxxxx
73 2501, 2551 and 0000 00xx Xx Xxxxx
74 00000 Xxxxxx Xxxxxxx Xxxx
78 0000 X. Xxxx Xxxx
79 0000 X. 00xx Xxx.
82 000 Xxxxxxxx Xxxxx
87 0000 XX 00xx Xx.
88 28983 & 00000 XX 00 Xxxx
00 00000 Xxxx Xxxx
92 0000 Xxx Xxxxxxxxxxxx Xxxx
95 5502 Memorial Dr.
99 00000 Xxxxxxx Xxxxxxx Xxxxx
000 000 Xxxxxx Xx.
110 0000 X. Xxxxx Xx., 0000 Xxxxxxxx Dr., 0000 Xxxxxxxx Xxx.
115 000 Xxxxx Xxxxxx Xxxxx
128 205 Beltline Road
Mortgage Loan No. City State Zip Code Property Type Property Sub-Type Units/SF
----------------- ------------------------ ----- ------------ ------------- ----------------- --------
10 Xxxxxxx XX 00000 Xxxxxxxxxxx Xxxxxx 000
00 Xxxxxxx XX 00000 Xxxxxxxxxxx Xxxxxx 000
00 Xxxxxxx XX 00000 Xxxxxxxxxxx Xxxxxx 000
00 Xxxxxxx XX 00000 Xxxxxxxxxxx Xxxxxx 000
00 Xxxxxxx XX 00000 Xxxxxxxxxxx Xxxxxx 00
00 Xxx Xxxxx XX 00000 Retail Unanchored 211,734
17 Xxxxxx XX 00000 Retail Anchored 288,853
21 Xxxxxxxx XX 00000 Retail Anchored 105,338
24 Xxxxxxxxx XX 00000 Self Storage Self Storage 93,585
32 Xxx Xxxxxxx XX 00000 Self Storage Self Storage 50,064
36 Xxxxxxxxx XX 00000 Retail Anchored 151,324
38 Xxxxxxx XX 00000 Retail Anchored 54,065
00 Xxxx Xxxxx XX 00000 Multifamily Garden 495
44 Floresville, San Antonio TX 78114, 78257 Self Storage Self Storage 227,392
50 Xxxxxxx XX 00000 Retail Anchored 148,870
51 Xxxxxxxxx XX 00000 Retail Anchored 29,335
52 Xxxxxxxxx Xxxxx XX 00000 Office Xxxxxx 00,000
00 Xxxxxxxx XX 00000 Retail Unanchored 34,295
57 Xxxxx XX 00000 Retail Anchored 131,179
67 Xxxxxxxx XX 00000 Hospitality Limited Service 100
68 Xxxxxxxxxxxx XX 00000 Xxxxxxxxxxx Xxxxxx 000
00 Xxxxxx XX 00000 Retail Anchored 139,078
00 Xxxxx Xxxx XX 00000 Hospitality Limited Service 62
73 Xxxxx XX 00000 Retail Unanchored 56,469
00 Xxxxxx Xxx Xxxxxxx XX 00000 Self Storage Self Storage 88,575
78 Xxxxxxx XX 00000 Retail Anchored 35,950
79 Xxxxxxxxxx XX 00000 Industrial Warehouse 192,384
82 Walkersville MD 21793 Self Storage Self Storage 55,928
87 Xxxxx XX 00000 Self Storage Self Storage 82,841
88 Xxxxxx XX 00000 Self Storage Self Storage 111,286
91 Xxxxxxxx XX 00000 Self Storage Self Storage 33,173
92 Xxxxxxxxx XX 00000 Self Storage Self Storage 61,685
95 Xxxxx Xxxxxxxx XX 00000 Self Storage Self Storage 105,788
99 Xxxxxxxx XX 00000 Self Storage Self Storage 52,175
106 Xxxxxxxxx XX 00000 Self Storage Self Storage 88,300
110 Xxxxxxxx Xxxxxxx XX 00000 Self Storage Self Storage 48,045
115 Xxxxxxxxxxxx XX 00000 Self Storage Self Storage 71,225
128 Xxxxxxxx XX 00000 Self Storage Self Storage 39,349
Security
Mortgage Loan No. Year Built Year Renovated Percent Leased(5) Percent Leased as of Date(5) Type(6)
----------------- ---------------------------- -------------- ----------------- ---------------------------- --------
10 1997 NAP 91.1% 03/07/2007 Fee
10 2001 NAP 91.5% 03/07/2007 Fee
10 1996 2006 99.4% 03/07/2007 Fee
10 1979 NAP 91.0% 03/07/2007 Fee
10 1997 2006 98.0% 03/07/2007 Fee
00 0000-0000 NAP 87.7% 07/09/2007 Fee
00 0000-0000 2006 79.6% 02/13/2007 Fee
21 1985 NAP 98.8% 03/01/2007 Fee
24 2002 NAP 94.9% 04/22/2007 Fee
32 1998 NAP 94.7% 04/26/2007 Fee
36 1977 1998 96.4% 04/30/2007 Fee
38 1986 NAP 89.3% 06/01/2007 Fee
00 0000-0000 NAP 85.1% 04/04/2007 Fee
00 0000-0000 NAP 87.8% 03/23/2007 Fee
50 1995 2002 100.0% 04/30/2007 Fee
51 2002 NAP 100.0% 03/15/2007 Fee
52 1976 NAP 94.1% 12/31/2006 Fee
56 2001 NAP 95.9% 03/01/2007 Fee
57 2006 NAP 90.5% 03/01/2007 Fee
67 2005 NAP 69.3% 03/01/2007 Fee
68 1970 2006 82.9% 02/08/2007 Fee
69 1990 2003 98.5% 12/31/2006 Fee
72 1989 NAP NAP NAP Fee
73 2001 NAP 91.5% 03/15/2007 Fee
74 1994 NAP 84.0% 05/08/2007 Fee
78 1985 NAP 100.0% 04/07/2007 Fee
79 1962, 1970's, 1987 NAP 100.0% 01/01/2007 Fee
82 2005 NAP 85.0% 05/31/2007 Fee
87 1987 NAP 72.0% 03/19/2007 Fee
00 0000-0000 NAP 90.1% 03/23/2007 Fee
91 1997 NAP 85.6% 05/16/2007 Fee
92 1998, 1999, 2000, 2004, 2007 NAP 77.2% 04/13/2007 Fee
95 1988 1997-1998 78.8% 04/03/2007 Fee
99 1983 NAP 99.6% 04/30/2007 Fee
106 2002 NAP 53.3% 04/12/2007 Fee
110 1996 NAP 94.3% 04/06/2007 Fee
115 2004 NAP 82.4% 04/24/2007 Fee
128 1990 NAP 80.4% 03/20/2007 Fee
Mortgage Loan No. Lien Position Related Borrower List Cut-Off Date Balance per Unit or SF Note Date
----------------- ------------- ---------------------- ----------------------------------- ----------
05/11/2007
10 First NAP $71,982 05/11/2007
10 First NAP $71,982 05/11/2007
10 First NAP $71,982 05/11/2007
10 First NAP $71,982 05/11/2007
10 First NAP $71,982 05/11/2007
11 First 11, 21, 38, 51, 52, 56 $227 06/04/2007
17 First NAP $130 03/26/2007
21 First 11, 21, 38, 51, 52, 56 $210 05/02/2007
24 First NAP $214 05/10/2007
32 First NAP $300 05/17/2007
36 First NAP $91 07/12/2007
38 First 11, 21, 38, 51, 52, 56 $249 03/29/2007
41 First NAP $24,040 04/30/2007
44 First 44, 88 $47 07/05/2007
50 First NAP $70 05/24/2007
51 First 11, 21, 38, 51, 52, 56 $351 06/07/2007
52 First 11, 21, 38, 51, 52, 56 $315 05/24/2007
56 First 11, 21, 38, 51, 52, 56 $279 05/01/2007
57 First NAP $71 05/29/2007
67 First NAP $75,000 07/05/2007
68 First NAP $24,651 06/21/2007
69 First NAP $50 05/14/2007
72 First NAP $108,871 06/21/2007
73 First NAP $109 05/31/2007
74 First NAP $68 07/16/2007
78 First NAP $140 05/18/2007
79 First NAP $24 05/17/2007
82 First NAP $79 06/21/2007
87 First NAP $49 06/26/2007
88 First 44, 88 $36 05/08/2007
91 First NAP $112 06/06/2007
92 First NAP $57 04/25/2007
95 First NAP $32 05/25/2007
99 First NAP $63 06/01/2007
106 First NAP $34 05/23/2007
110 First NAP $61 04/20/2007
115 First NAP $39 05/08/2007
128 First NAP $39 06/05/2007
Mortgage Loan No. First Payment Date (P&I) First Payment Date (IO) Maturity Date Due Date Grace Period(7) ARD Loan
----------------- ------------------------ ----------------------- ------------- -------- --------------- --------
NAP 07/01/2007 06/01/2012
10 NAP 07/01/2007 06/01/2012 1 5 No
10 NAP 07/01/2007 06/01/2012 1 5 No
10 NAP 07/01/2007 06/01/2012 1 5 No
10 NAP 07/01/2007 06/01/2012 1 5 No
10 NAP 07/01/2007 06/01/2012 1 5 No
11 NAP 08/01/2007 07/01/2017 1 8 No
17 NAP 05/01/2007 04/01/2017 1 5 No
21 NAP 07/01/2007 06/01/2017 1 8 No
24 NAP 07/01/2007 06/01/2017 1 5 No
32 07/01/2012 07/01/2007 06/01/2017 1 5 No
36 NAP 09/01/2007 08/01/2012 1 5 No
38 NAP 05/01/2007 04/01/2017 1 8 No
41 NAP 06/01/2007 05/01/2017 1 5 No
44 09/01/2009 09/01/2007 08/01/2012 1 5 No
50 NAP 07/01/2007 06/01/2017 1 5 No
51 NAP 08/01/2007 07/01/2017 1 8 No
52 NAP 07/01/2007 06/01/2017 1 8 No
56 NAP 07/01/2007 06/01/2017 1 8 No
57 07/01/2011 07/01/2007 06/01/2017 1 5 No
67 09/01/2012 09/01/2007 08/01/2017 1 5 No
68 08/01/2007 NAP 07/01/2017 1 5 No
69 07/01/2012 07/01/2007 06/01/2017 1 5 No
72 08/01/2009 08/01/2007 07/01/2017 1 5 No
73 07/01/2011 07/01/2007 06/01/2017 1 5 No
74 09/01/2010 09/01/2007 08/01/2017 1 5 No
78 07/01/2010 07/01/2007 06/01/2017 1 5 No
79 07/01/2007 NAP 06/01/2017 1 5 No
82 08/01/2010 08/01/2007 07/01/2017 1 5 No
87 08/01/2007 NAP 07/01/2014 1 5 No
88 07/01/2009 07/01/2007 06/01/2012 1 5 No
91 08/01/2010 08/01/2007 07/01/2017 1 5 No
92 06/01/2010 06/01/2007 05/01/2017 1 5 No
95 07/01/2007 NAP 06/01/2017 1 5 No
99 08/01/2012 08/01/2007 07/01/2017 1 5 No
106 07/01/2010 07/01/2007 06/01/2017 1 5 No
110 06/01/2009 06/01/2007 05/01/2017 1 5 No
115 07/01/2011 07/01/2007 06/01/2017 1 5 No
128 08/01/2007 NAP 07/01/2014 1 5 No
Mortgage Loan No. Lockbox Status Lockbox Type Original Term to Maturity Remaining Term to Maturity Original Amort. Term(8)
----------------- -------------- ------------ ------------------------- -------------------------- -----------------------
None NAP 60 58 IO
10 None NAP 60 58 IO
10 None NAP 60 58 IO
10 None NAP 60 58 IO
10 None NAP 60 58 IO
10 None NAP 60 58 IO
11 None NAP 120 119 IO
17 None NAP 120 116 IO
21 None NAP 120 118 IO
24 None NAP 120 118 IO
32 None NAP 120 118 357
36 None NAP 60 60 IO
38 None NAP 120 116 IO
41 None NAP 120 117 IO
44 None NAP 60 60 360
50 None NAP 120 118 IO
51 None NAP 120 119 IO
52 None NAP 120 118 IO
56 None NAP 120 118 IO
57 None NAP 120 118 360
67 None NAP 120 120 360
68 None NAP 120 119 360
69 None NAP 120 118 360
72 None NAP 120 119 360
73 None NAP 120 118 360
74 None NAP 120 120 360
78 None NAP 120 118 360
79 None NAP 120 118 360
82 None NAP 120 119 360
87 None NAP 84 83 360
88 None NAP 60 58 360
91 None NAP 120 119 360
92 None NAP 120 117 360
95 None NAP 120 118 360
99 None NAP 120 119 360
106 None NAP 120 118 360
110 None NAP 120 117 360
115 None NAP 120 118 360
128 None NAP 84 83 360
Mortgage Loan No. Remaining Amort. Term Mortgage Rate(9) Monthly Payment (P&I)(9) Monthly Payment (IO)(9)
----------------- --------------------- ---------------- ------------------------ -----------------------
IO 5.660% NAP $310,841.44
10 IO 5.660% NAP $133,432.27
10 IO 5.660% NAP $75,367.09
10 IO 5.660% NAP $53,799.48
10 IO 5.660% NAP $32,925.28
10 IO 5.660% NAP $15,317.31
11 IO 5.460% NAP $221,433.33
17 IO 5.540% NAP $175,529.51
21 IO 5.470% NAP $102,452.59
24 IO 5.750% NAP $97,164.35
32 357 5.860% $88,874.52 $74,267.36
36 IO 6.180% NAP $71,534.93
38 IO 5.570% NAP $63,452.81
41 IO 5.630% NAP $56,606.26
44 360 6.050% $65,099.04 $55,206.25
50 IO 5.700% NAP $50,086.11
51 IO 5.460% NAP $47,515.90
52 IO 5.590% NAP $48,132.42
56 IO 5.480% NAP $44,379.44
57 360 6.010% $55,818.00 $47,224.41
67 360 5.890% $44,437.26 $37,323.78
68 359 6.010% $45,015.00 NAP
69 360 5.500% $39,745.23 $32,528.94
72 360 6.020% $40,556.50 $34,332.81
73 360 6.020% $36,951.47 $31,281.01
74 360 6.420% $37,608.96 $32,545.83
78 360 5.890% $29,761.11 $24,996.98
79 358 5.710% $26,727.58 NAP
82 360 6.360% $27,407.12 $23,643.89
87 359 6.240% $24,756.45 NAP
88 360 5.750% $23,342.91 $19,432.87
91 360 5.800% $21,709.86 $18,131.71
92 360 5.720% $20,358.40 $16,915.05
95 358 6.000% $20,432.68 NAP
99 360 6.020% $19,827.62 $16,784.93
106 360 5.950% $17,890.19 $15,081.60
110 360 5.790% $17,114.60 $14,284.68
115 360 5.630% $16,127.22 $13,319.12
128 359 6.010% $9,303.00 NAP
Mortgage Loan No. Third Most Recent NOI Third Most Recent NOI End Date Second Most Recent NOI
----------------- ------------------------------ ------------------------------ ------------------------------
10 NAP NAP NAP
10 NAP NAP NAP
10 NAP NAP NAP
10 NAP NAP NAP
10 NAP NAP NAP
11 NAP NAP $2,826,822
17 NAP NAP NAP
21 NAP NAP $1,506,881
24 $1,327,436 12/31/2005 $1,584,535
32 $1,125,066 12/31/2005 $1,263,749
36 NAP NAP $1,198,098
38 $853,559 12/31/2004 $883,384
41 $1,187,834 12/31/2006 $1,309,208
44 $848,022 12/31/2005 $937,572
50 NAP NAP NAP
51 $798,385 12/31/2005 $782,684
52 $697,601 12/31/2004 $795,517
56 $644,799 12/31/2005 $688,670
57 NAP NAP NAP
67 $87,407 12/31/2005 $1,108,320
68 NAP NAP $638,561
69 NAP NAP $377,482
72 NAP NAP $688,816
73 $510,467 12/31/2004 $520,647
74 $442,809 12/31/2004 $523,888
78 $261,922 12/31/2004 $446,595
79 NAP NAP NAP
82 $4,999 May-Dec 2005, Annualized $225,605
87 $624,445 12/31/2005 $491,581
88 $362,342 12/31/2005 $379,088
91 $269,528 12/31/2005 $260,948
92 $283,313 12/31/2005 $296,935
95 $263,269 12/31/2005 $379,392
99 $321,977 12/31/2005 $360,111
106 $120,651 12/31/2005 $205,611
110 $232,600 12/31/2005 $240,546
115 $127,153 12/31/2005 $254,487
128 $163,452 12/31/2005 $170,706
Mortgage Loan No. Second Most Recent NOI End Date Most Recent NOI Most Recent NOI End Date Underwritten EGI
----------------- ------------------------------- --------------- ------------------------ ----------------
$8,008,548
10 NAP $2,259,020 TTM (01/31/2007) $3,370,223
10 NAP $1,248,095 TTM (01/31/2007) $1,906,410
10 NAP $892,630 TTM (01/31/2007) $1,438,215
10 NAP $569,498 TTM (01/31/2007) $860,321
10 NAP $272,050 TTM (01/31/2007) $433,379
11 12/31/2005 $3,523,943 12/31/2006 $4,574,347
17 NAP $2,327,096 12/31/2006 $4,495,877
21 12/31/2005 $1,621,813 12/31/2006 $2,114,707
24 12/31/2006 $1,615,293 02/28/2007 $2,080,420
32 12/31/2007 $1,322,838 02/28/2007 $1,772,839
36 12/31/2005 $1,282,289 12/31/2006 $1,520,217
38 12/31/2005 $934,816 12/31/2006 $1,245,746
41 TTM (04/16/2007) $1,405,899 (03/31/2007) Xxx. $2,386,668
44 12/31/2006 $1,015,703 03/31/2007 $1,339,764
50 NAP $753,338 12/31/2006 $1,429,531
51 12/31/2006 $1,033,573 (03/25/2007) Xxx. $1,181,426
52 12/31/2005 $722,602 12/31/2006 $1,002,022
56 12/31/2006 $696,361 TTM (01/31/2007) $955,687
57 NAP $536,599 12/31/2006 $1,459,004
67 12/31/2006 $1,197,453 03/31/2007 $2,814,583
68 12/31/2006 $739,100 04/30/2007 $1,759,284
69 12/31/2005 $451,620 12/31/2006 $1,193,755
72 12/31/2005 $888,850 12/31/2006 $1,916,842
73 12/31/2005 $650,595 12/31/2006 $835,451
74 12/31/2005 $601,562 12/31/2006 $923,313
78 12/31/2005 $457,030 12/31/2006 $637,667
79 NAP NAP NAP $956,025
82 12/31/2006 $318,056 05/31/2007 $661,620
87 12/31/2006 $575,844 02/08/2007 $914,539
88 12/31/2006 $369,940 (03/31/2007) Xxx. $504,722
91 12/31/2006 $285,136 03/31/2007 $534,582
92 12/31/2006 $282,266 03/31/2007 $459,117
95 12/31/2006 $579,042 02/28/2007 $867,638
99 12/31/2006 $382,460 03/31/2007 $552,773
106 12/31/2006 $229,377 03/31/2007 $524,354
110 12/31/2006 $330,905 01/31/2007 $406,499
115 12/31/2006 $284,607 02/28/2007 $576,952
128 12/31/2006 $164,768 02/28/2007 $402,869
Mortgage Loan No. Underwritten Expenses Underwritable NOI Underwritten Reserves Underwritable Cash Flow Balloon Balance
----------------- --------------------- ----------------- --------------------- ----------------------- ---------------
$2,691,977 $5,316,570 $195,150 $5,121,420 $65,000,000
10 $1,098,373 $2,271,850 $85,500 $2,186,350 $27,902,000
10 $615,214 $1,291,195 $42,400 $1,248,795 $15,760,000
10 $524,652 $913,563 $32,000 $881,563 $11,250,000
10 $281,414 $578,907 $25,250 $553,657 $6,885,000
10 $172,324 $261,055 $10,000 $251,055 $3,203,000
11 $984,491 $3,589,857 $166,705 $3,423,152 $48,000,000
17 $1,349,270 $2,708,529 $128,439 $2,580,090 $37,500,000
21 $474,645 $1,640,062 $84,668 $1,555,394 $22,168,000
24 $460,686 $1,619,734 $9,358 $1,610,376 $20,000,000
32 $478,730 $1,294,109 $7,510 $1,286,599 $14,003,393
36 $200,645 $1,211,108 $22,699 $1,188,409 $13,700,000
38 $328,493 $917,253 $48,600 $868,653 $13,483,000
41 $1,256,760 $1,129,908 $123,750 $1,006,158 $11,900,000
44 $431,605 $908,159 $34,815 $873,344 $10,422,734
50 $538,579 $890,951 $75,411 $815,540 $10,400,000
51 $375,101 $806,325 $37,345 $768,980 $10,300,000
52 $246,162 $755,860 $51,920 $703,940 $10,191,000
56 $285,793 $669,894 $39,958 $629,936 $9,585,000
57 $616,676 $842,328 $53,066 $789,262 $8,570,654
67 $1,757,728 $1,056,855 $112,583 $944,272 $7,014,251
68 $1,020,783 $738,501 $60,800 $677,701 $6,377,363
69 $547,458 $646,297 $63,620 $582,677 $6,512,073
72 $1,280,896 $635,946 $0 $635,946 $5,995,868
73 $250,017 $585,434 $53,193 $532,236 $5,668,601
74 $420,236 $503,077 $0 $503,077 $5,473,089
78 $174,572 $463,095 $43,079 $420,016 $4,536,508
79 $526,831 $429,194 $40,736 $388,458 $3,875,912
82 $291,337 $370,283 $8,389 $361,894 $4,010,187
87 $442,414 $472,125 $12,426 $459,699 $3,660,395
88 $184,257 $320,465 $16,693 $303,772 $3,851,525
91 $260,380 $274,202 $4,976 $269,226 $3,336,475
92 $190,383 $268,724 $9,253 $259,471 $3,151,179
95 $511,102 $356,536 $15,868 $340,668 $2,896,335
99 $194,647 $358,126 $7,826 $350,300 $3,092,195
106 $288,392 $235,962 $13,245 $222,717 $2,712,587
110 $143,016 $263,483 $7,207 $256,276 $2,580,338
115 $250,863 $326,089 $10,684 $315,405 $2,564,335
128 $243,736 $159,133 $5,902 $153,231 $1,403,471
Mortgage Loan No. Current Value(10) Source of Value(10) Valuation Date Largest Tenant(11)
----------------- ----------------- ------------------- -------------- ----------------------------------------
$81,200,000
10 $34,900,000 Appraisal 03/05/2007 NAP
10 $19,700,000 Appraisal 03/05/2007 NAP
10 $14,400,000 Appraisal 03/05/2007 NAP
10 $8,100,000 Appraisal 03/05/2007 NAP
10 $4,100,000 Appraisal 03/05/2007 NAP
11 $65,600,000 Appraisal 03/18/2007 Treasures Furniture, Inc
17 $49,200,000 Appraisal 02/08/2007 Sears
21 $28,460,000 Appraisal 04/12/2007 Xxxxxxxx'x #293
24 $25,090,000 Appraisal 04/03/2007 NAP
32 $19,040,000 Appraisal 04/09/2007 NAP
36 $17,500,000 Appraisal 03/19/2007 Hobby Lobby
38 $17,300,000 Appraisal 02/22/2007 Walgreen Store #1599
41 $15,700,000 Appraisal 03/21/2007 NAP
44 $13,980,000 Appraisal 02/15/2007 NAP
50 $13,000,000 Appraisal 05/01/2007 Hobby Lobby
51 $13,000,000 Appraisal 05/01/2007 Xxxxx Fargo Bank
52 $13,200,000 Appraisal 05/01/2007 Xxxxx Xxxxxxxx and Xxx Xxxxxxx So Cal Es
56 $12,420,000 Appraisal 02/22/2007 Century 21 Metro Allaince
57 $14,800,000 Appraisal 03/26/2007 Hornbachers
67 $12,700,000 Appraisal 04/18/2007 NAP
68 $10,020,000 Appraisal 05/17/2007 NAP
69 $10,300,000 Appraisal 03/20/2007 Kohl's (Ground Lease)
72 $9,000,000 Appraisal 05/04/2007 NAP
73 $8,250,000 Appraisal 03/19/2007 Paramount Sports
74 $10,780,000 Appraisal 02/24/2007 NAP
78 $6,650,000 Appraisal 04/17/2007 Live Management
79 $6,000,000 Appraisal 03/29/2007 Faith Cartage
82 $6,720,000 Appraisal 05/07/2007 NAP
87 $6,350,000 Appraisal 02/26/2007 NAP
88 $5,040,000 Appraisal 02/08/2007 NAP
91 $4,650,000 Appraisal 04/16/2007 NAP
92 $4,390,000 Appraisal 03/16/2007 NAP
95 $5,130,000 Appraisal 03/01/2007 NAP
99 $5,200,000 Appraisal 04/13/2007 NAP
106 $5,960,000 Appraisal 04/11/2007 NAP
110 $3,730,000 Appraisal 03/12/2007 NAP
115 $5,030,000 Appraisal 04/12/2007 NAP
128 $2,060,000 Appraisal 02/28/2007 NAP
Mortgage Loan No. Lease Expiration Date % NSF Second Largest Tenant Lease Expiration Date % NSF
----------------- --------------------- ------- ---------------------------------------- --------------------- -------
10 NAP NAP NAP NAP NAP
10 NAP NAP NAP NAP NAP
10 NAP NAP NAP NAP NAP
10 NAP NAP NAP NAP NAP
10 NAP NAP NAP NAP NAP
11 11/30/2013 47.3% New Horizons, Inc. 06/30/2008 8.9%
17 07/24/2009 23.5% Gottschalks 04/30/2015 15.0%
21 01/31/2012 23.7% Michael's Stores, Inc #2118 10/31/2010 23.7%
24 NAP NAP NAP NAP NAP
32 NAP NAP NAP NAP NAP
36 04/30/2011 30.5% Goody's 11/30/2009 25.9%
38 08/31/2026 24.0% Cactus Jacks 05/31/2009 7.8%
41 NAP NAP NAP NAP NAP
44 NAP NAP NAP NAP NAP
50 09/30/2012 39.9% Big Lots 01/31/2013 23.6%
51 11/30/2012 13.8% GOLDEN ONE CREDIT UNION 12/31/2007 12.0%
52 06/30/2011 9.6% Drs. M Xxxxxxxx & Xxxxx Xxxxxx Xx. Xxxxx 08/14/2007 6.1%
56 04/30/2009 23.3% Rosati's of Ocotillo, Inc 06/30/2011 8.6%
57 04/30/2021 49.6% Paces Lodging Corp. 04/30/2011 14.6%
67 NAP NAP NAP NAP NAP
68 NAP NAP NAP NAP NAP
69 01/28/2023 63.6% OfficeMax Store #14 12/31/2009 16.5%
72 NAP NAP NAP NAP NAP
73 03/30/2010 19.2% Old Chicago 04/30/2011 12.6%
74 NAP NAP NAP NAP NAP
78 09/30/2009 27.7% Associated Appliances Sales 10/31/2009 13.6%
79 03/31/2012 56.7% Mattress World 08/31/2014 43.3%
82 NAP NAP NAP NAP NAP
87 NAP NAP NAP NAP NAP
88 NAP NAP NAP NAP NAP
91 NAP NAP NAP NAP NAP
92 NAP NAP NAP NAP NAP
95 NAP NAP NAP NAP NAP
99 NAP NAP NAP NAP NAP
106 NAP NAP NAP NAP NAP
110 NAP NAP NAP NAP NAP
115 NAP NAP NAP NAP NAP
128 NAP NAP NAP NAP NAP
Mortgage Loan No. Third Largest Tenant Lease Expiration Date % NSF Insurance Escrow in Place
----------------- -------------------------------------- --------------------- --------- -------------------------
10 NAP NAP NAP Yes
10 NAP NAP NAP Yes
10 NAP NAP NAP Yes
10 NAP NAP NAP Yes
10 NAP NAP NAP Yes
11 Scan Furniture 07/31/2007 8.1% No
17 Xxxx Dress for Less 01/31/2011 11.9% No
21 Gateway 05/31/2009 9.0% No
24 NAP NAP NAP Yes
32 NAP NAP NAP No
36 Office Max 01/31/2014 15.9% Yes
38 Abacus Inn 11/30/2007 7.3% No
41 NAP NAP NAP No
44 NAP NAP NAP Yes
50 Mardel's 07/31/2017 16.8% Yes
51 XXXXXX X. XXXXX, DDS 09/30/2008 7.9% No
52 Xxxxxxx Xxxxxxxxx Xxxxxx xxXxx Goko Gr 02/08/2008 5.8% No
56 Catalina 1.75 Cleaners 06/30/2008 7.9% No
57 Alerus 06/26/2026 2.1% No
67 NAP NAP NAP Yes
68 NAP NAP NAP No
69 Hawkin's Restaurant 12/31/2007 4.1% Yes
72 NAP NAP NAP Yes
73 Play it again Sports 01/31/2007 11.4% No
74 NAP NAP NAP Yes
78 Scuba Specialties 06/30/2013 10.7% Yes
79 NAP NAP NAP Yes
82 NAP NAP NAP Yes
87 NAP NAP NAP No
88 NAP NAP NAP Yes
91 NAP NAP NAP Yes
92 NAP NAP NAP Yes
95 NAP NAP NAP No
99 NAP NAP NAP No
106 NAP NAP NAP Yes
110 NAP NAP NAP Yes
115 NAP NAP NAP No
128 NAP NAP NAP No
Mortgage Loan No. Tax Escrow in Place(12) Capital Expenditure Escrow in Place(13) TI/LC Escrow in Place(14)
----------------- ----------------------- --------------------------------------- -------------------------
10 Yes Yes No
10 Yes Yes No
10 Yes Yes No
10 Yes Yes No
10 Yes Yes No
11 No No No
17 No No No
21 No No No
24 Yes Yes No
32 Yes No No
36 Yes Yes Yes
38 No No No
41 Yes No No
44 Yes Yes No
50 Yes No No
51 No No No
52 No No No
56 No No No
57 No No No
67 Yes Yes No
68 No Yes No
69 Yes No No
72 Yes Yes No
73 No No Yes
74 Yes Yes No
78 Yes Yes Yes
79 Yes No Yes
82 Yes Yes No
87 Yes Yes No
88 Yes Yes No
91 Yes Yes No
92 Yes Yes No
95 Yes Yes No
99 No Yes No
106 Yes Yes No
110 Yes Yes No
115 No No No
128 Yes Yes No
Mortgage Loan No. Other Escrow Description(15)
----------------- -----------------------------------------------------------------------
10 NAP
10 NAP
10 NAP
10 NAP
10 NAP
11 Earnout
17 Xxx Jewelers Reimbursement
21 NAP
24 NAP
32 NAP
36 Working Capital Reserve
38 NAP
41 NAP
44 Reverse Earn Out
50 NAP
51 Reserve on dark space
52 NAP
56 NAP
57 Lakemode Liquors Reserve
67 NAP
68 NAP
69 NAP
72 NAP
73 Zoning Holdback
74 NAP
78 Phoenix Litigation Fund, Renewal and Re-Tenanting Fund, Cell Tower Fund
79 Rent Abatement Reserve
82 NAP
87 NAP
88 Earnout
91 Reverse Earnout LOC
92 Reverse Earnout
95 NAP
99 NAP
106 Reverse Earnout LOC
110 NAP
115 NAP
128 Additional Reserves Fund
Mortgage Loan No. Springing Escrow Description(16) Initial Capital Expenditure Escrow Requirement(17)
----------------- -------------------------------- --------------------------------------------------
10 NAP $0
10 NAP $0
10 NAP $0
10 NAP $0
10 NAP $0
11 NAP $0
17 Tax, Insurance $0
21 Other $0
24 NAP $0
32 NAP $0
36 Other $0
38 NAP $0
41 NAP $0
44 NAP $0
50 TI/LC, CapEx, Other $0
51 Other $0
52 Tax, Insurance $0
56 Other $0
57 NAP $0
67 Other $9,382
68 Tax, Insurance $0
69 Other $0
72 NAP $0
73 NAP $0
74 NAP $0
78 NAP $0
79 NAP $0
82 NAP $0
87 Insurance $0
88 NAP $0
91 NAP $0
92 NAP $0
95 Tax, Insurance $0
99 NAP $0
106 NAP $0
110 NAP $0
115 NAP $0
128 Insurance $35,937
Mortgage Loan No. Monthly Capital Expenditure Escrow Requirement(18) Current Capital Expenditure Escrow Balance(19)
----------------- -------------------------------------------------- ----------------------------------------------
10 $6,851 $0
10 $3,822 $0
10 $2,885 $0
10 $1,821 $0
10 $883 $0
11 $0 $0
17 $0 $0
21 $0 $0
24 $780 $0
32 $0 $0
36 $1,892 $0
38 $0 $0
41 $0 $0
44 $2,901 $0
50 $0 $0
51 $0 $0
52 $0 $0
56 $0 $0
57 $0 $0
67 $0 $0
68 $5,067 $0
69 $0 $0
72 $4,000 $0
73 $0 $0
74 $1,107 $0
78 $633 $0
79 $0 $0
82 $699 $0
87 $1,034 $0
88 $1,391 $0
91 $415 $0
92 $771 $771
95 $1,330 $0
99 $652 $0
106 $736 $0
110 $601 $601
115 $0 $0
128 $0 $35,937
Mortgage Loan No. Initial TI/LC Escrow Requirement(20) Monthly TI/LC Escrow Requirement(21) Current TI/LC Escrow Balance(22)
----------------- ------------------------------------ ------------------------------------ --------------------------------
10 $0 $0 $0
10 $0 $0 $0
10 $0 $0 $0
10 $0 $0 $0
10 $0 $0 $0
11 $0 $0 $0
17 $0 $0 $0
21 $0 $0 $0
24 $0 $0 $0
32 $0 $0 $0
36 $350,000 $0 $0
38 $0 $0 $0
41 $0 $0 $0
44 $0 $0 $0
50 $0 $0 $0
51 $0 $0 $0
52 $0 $0 $0
56 $0 $0 $0
57 $0 $0 $0
67 $0 $0 $0
68 $0 $0 $0
69 $0 $0 $0
72 $0 $0 $0
73 $232,355 $0 $307,355
74 $0 $0 $0
78 $0 $2,961 $0
79 $0 $3,336 $72,500
82 $0 $0 $0
87 $0 $0 $0
88 $0 $0 $0
91 $0 $0 $0
92 $0 $0 $0
95 $0 $0 $0
99 $0 $0 $0
106 $0 $0 $0
110 $0 $0 $0
115 $0 $0 $0
128 $0 $0 $0
Mortgage Loan No. Environmental Insurance(23) Interest Accrual Method Seasoning(24)
----------------- --------------------------- ----------------------- -------------
Actual/360 2
10 No Actual/360 2
10 No Actual/360 2
10 No Actual/360 2
10 No Actual/360 2
10 No Actual/360 2
11 No Actual/360 1
17 No Actual/360 4
21 No Actual/360 2
24 No Actual/360 2
32 No Actual/360 2
36 No Actual/360 0
38 No Actual/360 4
41 No Actual/360 3
44 No Actual/360 0
50 No Actual/360 2
51 No Actual/360 1
52 No Actual/360 2
56 No Actual/360 2
57 No Actual/360 2
67 No Actual/360 0
68 No Actual/360 1
69 No Actual/360 2
72 No Actual/360 1
73 No Actual/360 2
74 No Actual/360 0
78 No Actual/360 2
79 No Actual/360 2
82 No Actual/360 1
87 No Actual/360 1
88 No Actual/360 2
91 No Actual/360 1
92 No Actual/360 3
95 No Actual/360 2
99 No Actual/360 1
106 No Actual/360 2
110 No Actual/360 3
115 No Actual/360 2
128 No Actual/360 1
Prepayment Code(25)
-------------------------------------------------------------------------------------------------------
Lesser of Lesser of Lesser of Lesser of Lesser of
Mortgage Loan No. LO DEF DEF/YM1 DEF/YM0.5 YM1 YM and 5% YM and 4% YM and 3% YM and 2% YM and 1% Open
----------------- -- --- ------- --------- --- --------- --------- --------- --------- --------- ----
26 30 4
10 26 30 4
10 26 30 4
10 26 30 4
10 26 30 4
10 26 30 4
11 25 88 7
17 28 85 7
21 26 87 7
24 26 90 4
32 26 90 4
36 24 32 4
38 28 85 7
41 27 89 4
44 24 32 4
50 26 90 4
51 25 88 7
52 26 87 7
56 26 87 7
57 35 81 4
67 24 35 61
68 25 91 4
69 26 86 7
72 25 91 4
73 35 81 4
74 24 92 4
78 26 91 3
79 26 90 4
82 25 91 4
87 25 55 4
88 26 30 4
91 25 91 4
92 27 89 4
95 26 90 4
99 25 91 4
106 35 81 4
110 27 89 4
115 26 87 7
128 25 55 4
Mortgage Loan No. YM Formula(26) Administrative Cost Rate (27) Mortgage Loan No.
----------------- -------------- ----------------------------- -----------------
2.095 10
10 2.095
10 2.095
10 2.095
10 2.095
10 2.095
11 2.095 11
17 2.095 17
21 2.095 21
24 2.095 24
32 2.095 32
36 2.095 36
38 2.095 38
41 2.095 41
44 2.095 44
50 2.095 50
51 2.095 51
52 2.095 52
56 2.095 56
57 2.095 57
67 2.095 67
68 2.095 68
69 2.095 69
72 2.095 72
73 2.095 73
74 2.095 74
78 2.095 78
79 E 2.095 79
82 2.095 82
87 2.095 87
88 2.095 88
91 2.095 91
92 2.095 92
95 2.095 95
99 G 2.095 99
106 H 2.095 106
110 2.095 110
115 2.095 115
128 2.095 128
EXHIBIT 2
REPRESENTATIONS AND WARRANTIES REGARDING
INDIVIDUAL MORTGAGE LOANS
(1) Mortgage Loan Schedule. The information set forth in the Mortgage Loan
Schedule is true and correct in all material respects as of the date of this
Agreement and as of the Cut-Off Date.
(2) Whole Loan; Ownership of Mortgage Loans. Each Mortgage Loan is a whole
loan and not a participation interest in a mortgage loan. Immediately prior to
the transfer to the Purchaser of the Mortgage Loans, the Seller had good title
to, and was the sole owner of, each Mortgage Loan. The Seller has full right,
power and authority to transfer and assign each of the Mortgage Loans to or at
the direction of the Purchaser and has validly and effectively conveyed (or
caused to be conveyed) to the Purchaser or its designee all of the Seller's
legal and beneficial interest in and to the Mortgage Loans free and clear of any
and all pledges, liens, charges, security interests and/or other encumbrances.
Upon the consummation of the transactions contemplated by this Agreement, the
Seller will have validly and effectively conveyed to the Purchaser all legal and
beneficial interest in and to each Mortgage Loan free and clear of any pledge,
lien, charge, security interest or other encumbrance. The sale of the Mortgage
Loans to the Purchaser or its designee does not require the Seller to obtain any
governmental or regulatory approval or consent that has not been obtained. None
of the Mortgage Loan documents restricts the Seller's right to transfer the
Mortgage Loan to the Purchaser or to the Trustee.
(3) Payment Record. No scheduled payment of principal and interest under
any Mortgage Loan was 30 days or more past due as of the Cut-Off Date, and no
Mortgage Loan was 30 days or more delinquent in the twelve-month period
immediately preceding the Cut-Off Date.
(4) Lien; Valid Assignment. The Mortgage related to and delivered in
connection with each Mortgage Loan constitutes a valid and, subject to the
exceptions set forth in paragraph 13 below, enforceable first priority lien upon
the related Mortgaged Property, prior to all other liens and encumbrances,
except for (a) the lien for current real estate taxes and assessments not yet
due and payable, (b) covenants, conditions and restrictions, rights of way,
easements and other matters that are of public record and/or are referred to in
the related lender's title insurance policy, (c) exceptions and exclusions
specifically referred to in such lender's title insurance policy, (d) other
matters to which like properties are commonly subject, none of which matters
referred to in clauses (b), (c) or (d), individually or in the aggregate,
materially interferes with the security intended to be provided by such
Mortgage, the marketability or current use or operation of the Mortgaged
Property or the current ability of the Mortgaged Property to generate operating
income sufficient to service the Mortgage Loan debt and (e) if such Mortgage
Loan is cross-collateralized with any other Mortgage Loan, the lien of the
Mortgage for such other Mortgage Loan (the foregoing items (a) through (e) being
herein referred to as the "Permitted Encumbrances"). The related assignment of
such Mortgage executed and delivered in favor of the Trustee is in recordable
form and constitutes a legal, valid and binding assignment, sufficient to convey
to the assignee named therein all of the assignor's right, title and interest
in, to and under such Mortgage. Such Mortgage, together with any separate
security agreements, chattel mortgages or equivalent instruments, establishes
and creates a valid and, subject to the exceptions set forth in paragraph 13
below, enforceable security interest in favor of the holder thereof in all of
the related Mortgagor's personal property used in, and reasonably necessary to
operate, the related Mortgaged Property. In the case of a Mortgaged Property
operated as a hotel or an assisted living facility, the Mortgagor's personal
property includes all personal property that a prudent mortgage lender making a
similar Mortgage Loan would deem reasonably necessary to operate the related
Mortgaged Property as it is currently being operated. A Uniform Commercial Code
financing statement has been filed and/or recorded in all places necessary to
perfect a valid security interest in such personal property, to the extent a
security interest may be so created therein, and such security interest is a
first priority security interest, subject to any prior purchase money security
interest in such personal property and any personal property leases applicable
to such personal property. Notwithstanding the foregoing, no representation is
made as to the perfection of any security interest in rents or other personal
property to the extent that possession or control of such items or actions other
than the filing of Uniform Commercial Code financing statements are required in
order to effect such perfection.
(5) Assignment of Leases and Rents. The Assignment of Leases related to
and delivered in connection with each Mortgage Loan establishes and creates a
valid, subsisting and, subject to the exceptions set forth in paragraph 13
below, enforceable first priority lien and first priority security interest in
the related Mortgagor's interest in all leases, sub-leases, licenses or other
agreements pursuant to which any person is entitled to occupy, use or possess
all or any portion of the real property subject to the related Mortgage, and
each assignor thereunder has the full right to assign the same. The related
assignment of any Assignment of Leases not included in a Mortgage has been
executed and delivered in favor of the Trustee and is in recordable form and
constitutes a legal, valid and binding assignment, sufficient to convey to the
assignee named therein all of the assignor's right, title and interest in, to
and under such Assignment of Leases. If an Assignment of Leases exists with
respect to any Mortgage Loan (whether as a part of the related Mortgage or
separately), then the related Mortgage or related Assignment of Leases, subject
to applicable law, provides for, upon an event of default under the Mortgage
Loan, the appointment of a receiver for the collection of rents or for the
related mortgagee to enter into possession to collect the rents or for rents to
be paid directly to the mortgagee.
(6) Mortgage Status; Waivers and Modifications. No Mortgage has been
satisfied, cancelled, rescinded or subordinated in whole or in part, and the
related Mortgaged Property has not been released from the lien of such Mortgage,
in whole or in part (except for partial reconveyances of real property that are
set forth on Schedule A to Exhibit 2), nor has any instrument been executed that
would effect any such satisfaction, cancellation, subordination, rescission or
release, in any manner that, in each case, materially adversely affects the
value of the related Mortgaged Property. None of the terms of any Mortgage Note,
Mortgage or Assignment of Leases has been impaired, waived, altered or modified
in any respect, except by written instruments, all of which are included in the
related Mortgage File and none of the Mortgage Loans has been materially
modified since August 1, 2007.
(7) Condition of Property; Condemnation. With respect to (i) the Mortgaged
Properties securing the Mortgage Loans that were the subject of an engineering
report issued after the first day of the month that is 18 months prior to the
Closing Date, each Mortgaged Property is, to the Seller's knowledge, free and
clear of any damage (or adequate reserves therefor have been established based
on the engineering report) that would materially and adversely affect its value
as security for the related Mortgage Loan and (ii) the Mortgaged Properties
securing the Mortgage Loans that were not the subject of an engineering report
18 months prior to the Closing Date as set forth on Schedule A to this Exhibit
2, each Mortgaged Property is in good repair and condition and all building
systems contained therein are in good working order (or adequate reserves
therefor have been established) and each Mortgaged Property is free of
structural defects, in each case, that would materially and adversely affect its
value as security for the related Mortgage Loan as of the date hereof. The
Seller has received no notice of the commencement of any proceeding for the
condemnation of all or any material portion of any Mortgaged Property. To the
Seller's knowledge (based on surveys and/or title insurance obtained in
connection with the origination of the Mortgage Loans), as of the date of the
origination of each Mortgage Loan, all of the material improvements on the
related Mortgaged Property that were considered in determining the appraised
value of the Mortgaged Property lay wholly within the boundaries and building
restriction lines of such property, except for encroachments that are insured
against by the lender's Title Policy referred to herein or that do not
materially and adversely affect the value or marketability of such Mortgaged
Property, and no improvements on adjoining properties materially encroached upon
such Mortgaged Property so as to materially and adversely affect the value or
marketability of such Mortgaged Property, except those encroachments that are
insured against by the Title Policy referred to herein.
(8) Title Insurance. Each Mortgaged Property is covered by an American
Land Title Association (or a comparable form as adopted in the applicable
jurisdiction) lender's title insurance policy, a pro forma policy or a marked-up
title insurance commitment (on which the required premium has been paid) which
evidences such title insurance policy (the "Title Policy") in the original
principal amount of the related Mortgage Loan after all advances of principal.
Each Title Policy insures that the related Mortgage is a valid first priority
lien on such Mortgaged Property, subject only to Permitted Encumbrances. Each
Title Policy (or, if it has yet to be issued, the coverage to be provided
thereby) is in full force and effect, all premiums thereon have been paid and no
material claims have been made thereunder and no claims have been paid
thereunder. No holder of the related Mortgage has done, by act or omission,
anything that would materially impair the coverage under such Title Policy.
Immediately following the transfer and assignment of the related Mortgage Loan
to the Trustee, such Title Policy (or, if it has yet to be issued, the coverage
to be provided thereby) will inure to the benefit of the Trustee without the
consent of or notice to the insurer. To the Seller's knowledge, the insurer
issuing such Title Policy is qualified to do business in the jurisdiction in
which the related Mortgaged Property is located. Such Title Policy contains no
exclusion for, or it affirmatively insures access to a public road.
(9) No Holdbacks. The proceeds of each Mortgage Loan have been fully
disbursed and there is no obligation for future advances with respect thereto.
With respect to each Mortgage Loan, any and all requirements as to completion of
any on-site or off-site improvement that must be satisfied as a condition to
disbursements of any funds escrowed for such purpose have been complied with on
or before the Closing Date, or any such funds so escrowed have not been
released.
(10) Mortgage Provisions. The Mortgage Note or Mortgage for each Mortgage
Loan, together with applicable state law, contains customary and enforceable
provisions (subject to the exceptions set forth in paragraph 13) such as to
render the rights and remedies of the holder thereof adequate for the practical
realization against the related Mortgaged Property of the principal benefits of
the security intended to be provided thereby.
(11) Trustee under Deed of Trust. If any Mortgage is a deed of trust, (1)
a trustee, duly qualified under applicable law to serve as such, is properly
designated and serving under such Mortgage, and (2) no fees or expenses are
payable to such trustee by the Seller, the Purchaser or any transferee thereof
except in connection with a trustee's sale after default by the related
Mortgagor or in connection with any full or partial release of the related
Mortgaged Property or related security for the related Mortgage Loan.
(12) Environmental Conditions.
(i) With respect to the Mortgaged Properties securing the Mortgage
Loans that were the subject of an environmental site assessment after the first
day of the month that is 18 months prior to the Closing Date, an environmental
site assessment, or an update of a previous such report, was performed with
respect to each Mortgaged Property in connection with the origination or the
acquisition of the related Mortgage Loan, a report of each such assessment (or
the most recent assessment with respect to each Mortgaged Property) (an
"Environmental Report") has been delivered to the Purchaser, and the Seller has
no knowledge of any material and adverse environmental condition or circumstance
affecting any Mortgaged Property that was not disclosed in such report. Each
Mortgage requires the related Mortgagor to comply with all applicable federal,
state and local environmental laws and regulations. Where such assessment
disclosed the existence of a material and adverse environmental condition or
circumstance affecting any Mortgaged Property, (i) a party not related to the
Mortgagor was identified as the responsible party for such condition or
circumstance or (ii) environmental insurance covering such condition was
obtained or must be maintained until the condition is remediated or (iii) the
related Mortgagor was required either to provide additional security that was
deemed to be sufficient by the originator in light of the circumstances and/or
to establish an operations and maintenance plan. In connection with the
origination of each Mortgage Loan, each environmental consultant has represented
in such Environmental Report or in a supplement letter that the environmental
assessment of the applicable Mortgaged Property was conducted utilizing
generally accepted Phase I industry standards using the American Society for
Testing and Materials (ASTM) Standard Practice E 1527-00.
(ii) With respect to the Mortgaged Properties securing the Mortgage
Loans that were not the subject of an environmental site assessment meeting ASTM
Standards after the first day of the month that is 18 months prior to the
Closing Date as set forth on Schedule A to this Exhibit 2, (i) no Hazardous
Material is present on such Mortgaged Property such that (1) the value, use or
operation of such Mortgaged Property is materially and adversely affected or (2)
under applicable federal, state or local law, (a) such Hazardous Material could
be required to be eliminated at a cost materially and adversely affecting the
value of the Mortgaged Property before such Mortgaged Property could be altered,
renovated, demolished or transferred or (b) the presence of such Hazardous
Material could (upon action by the appropriate governmental authorities) subject
the owner of such Mortgaged Property, or the holders of a security interest
therein, to liability for the cost of eliminating such Hazardous Material or the
hazard created thereby at a cost materially and adversely affecting the value of
the Mortgaged Property, and (ii) such Mortgaged Property is in material
compliance with all applicable federal, state and local laws pertaining to
Hazardous Materials or environmental hazards, any noncompliance with such laws
does not have a material adverse effect on the value of such Mortgaged Property
and neither Seller nor, to Seller's knowledge, the related Mortgagor or any
current tenant thereon, has received any notice of violation or potential
violation of any such law.
"Hazardous Materials" means gasoline, petroleum products, explosives,
radioactive materials, polychlorinated biphenyls or related or similar
materials, and any other substance, material or waste as may be defined as
a hazardous or toxic substance by any federal, state or local
environmental law, ordinance, rule, regulation or order, including without
limitation, the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended (42 U.S.C. xx.xx. 9601 et seq.), the
Hazardous Materials Transportation Act as amended (42 U.S.C. xx.xx. 6901
et seq.), the Resource Conservation and Recovery Act, as amended (42
U.S.C. xx.xx. 6901 et seq.), the Federal Water Pollution Control Act as
amended (33 U.S.C. xx.xx. 1251 et seq.), the Clean Air Act as amended (42
U.S.C. xx.xx. 1251 et seq.) and any regulations promulgated pursuant
thereto.
(13) Loan Document Status. Each Mortgage Note, Mortgage, Assignment of
Leases and other agreement that evidences or secures such Mortgage Loan and was
executed by or on behalf of the related Mortgagor is the legal, valid and
binding obligation of the maker thereof (subject to any non-recourse provisions
contained in any of the foregoing agreements and any applicable state
anti-deficiency or market value limit deficiency legislation), enforceable in
accordance with its terms, except as such enforcement may be limited by
bankruptcy, insolvency, reorganization or other similar laws affecting the
enforcement of creditors' rights generally, and by general principles of equity
(regardless of whether such enforcement is considered in a proceeding in equity
or at law) and there is no valid defense, counterclaim or right of offset or
rescission available to the related Mortgagor with respect to such Mortgage
Note, Mortgage or other agreement.
(14) Insurance. Each Mortgaged Property is, and is required pursuant to
the related Mortgage to be, insured by (a) a fire and extended perils insurance
policy providing coverage against loss or damage sustained by reason of fire,
lightning, windstorm, hail, explosion, riot, riot attending a strike, civil
commotion, aircraft, vehicles and smoke, and, to the extent required as of the
date of origination by the originator of such Mortgage Loan consistent with its
normal commercial mortgage lending practices, against other risks insured
against with respect to similarly situated properties in the locality of the
Mortgaged Property (so-called "All Risk" coverage) in an amount not less than
the lesser of the principal balance of the related Mortgage Loan and the
replacement cost of the improvements located at the Mortgaged Property, and
contains no provisions for a deduction for depreciation, and not less than the
amount necessary to avoid the operation of any co-insurance provisions with
respect to the Mortgaged Property; (b) a business interruption or rental loss
insurance policy, in an amount at least equal to six months of operations of the
Mortgaged Property; (c) a flood insurance policy (if any portion of buildings or
other structures on the Mortgaged Property are located in an area identified by
the Federal Emergency Management Agency as having special flood hazards and the
Federal Emergency Management Agency requires flood insurance to be maintained);
and (d) a comprehensive general liability insurance policy in amounts as are
generally required by commercial mortgage lenders, for properties of similar
types and in any event not less than $1 million per occurrence. Such insurance
policy contains a standard mortgagee clause that names the mortgagee as an
additional insured in the case of liability insurance policies and as a loss
payee in the case of property insurance policies and requires prior notice to
the holder of the Mortgage of termination or cancellation. No such notice has
been received, including any notice of nonpayment of premiums, that has not been
cured. Each Mortgage obligates the related Mortgagor to maintain all such
insurance and, upon such Mortgagor's failure to do so, authorizes the holder of
the Mortgage to maintain such insurance at the Mortgagor's cost and expense and
to seek reimbursement therefor from such Mortgagor. Each Mortgage provides that
casualty insurance proceeds will be applied (a) to the restoration or repair of
the related Mortgaged Property, (b) to the restoration or repair of the related
Mortgaged Property, with any excess insurance proceeds after restoration or
repair being paid to the Mortgagor, or (c) to the reduction of the principal
amount of the Mortgage Loan. For each Mortgaged Property located in a Zone 3 or
Zone 4 seismic zone, either: (i) a seismic report which indicated a PML of less
than 20% was prepared, based on a 450- or 475-year lookback with a 10%
probability of exceedance in a 50-year period, in connection with the
origination of the Mortgage Loan secured by such Mortgaged Property or (ii) the
improvements for the Mortgaged Property are insured against earthquake damage.
(15) Taxes and Assessments. As of the Closing Date, there are no
delinquent or unpaid taxes, assessments (including assessments payable in future
installments) or other outstanding charges affecting any Mortgaged Property that
are or may become a lien of priority equal to or higher than the lien of the
related Mortgage. For purposes of this representation and warranty, real
property taxes and assessments shall not be considered delinquent or unpaid
until the date on which interest or penalties would be first payable thereon.
(16) Mortgagor Bankruptcy. No Mortgagor is, to the Seller's knowledge, a
debtor in any state or federal bankruptcy or insolvency proceeding.
(17) Leasehold Estate. Each Mortgaged Property consists of a fee simple
estate in real estate or, if the related Mortgage Loan is secured in whole or in
part by the interest of a Mortgagor as a lessee under a ground lease of a
Mortgaged Property (a "Ground Lease"), by the related Mortgagor's interest in
the Ground Lease but not by the related fee interest in such Mortgaged Property
(the "Fee Interest"), and as to such Ground Leases:
(a) Such Ground Lease or a memorandum thereof has been or will be
duly recorded; such Ground Lease (or the related estoppel letter or lender
protection agreement between the Seller and related lessor) does not
prohibit the current use of the Mortgaged Property and does not prohibit
the interest of the lessee thereunder to be encumbered by the related
Mortgage; and there has been no material change in the payment terms of
such Ground Lease since the origination of the related Mortgage Loan, with
the exception of material changes reflected in written instruments that
are a part of the related Mortgage File;
(b) The lessee's interest in such Ground Lease is not subject to any
liens or encumbrances superior to, or of equal priority with, the related
Mortgage, other than Permitted Encumbrances;
(c) The Mortgagor's interest in such Ground Lease is assignable to
the Purchaser and the Trustee as its assignee upon notice to, but without
the consent of, the lessor thereunder (or, if such consent is required, it
has been obtained prior to the Closing Date) and, in the event that it is
so assigned, is further assignable by the Purchaser and its successors and
assigns upon notice to, but without the need to obtain the consent of,
such lessor or if such lessor's consent is required it cannot be
unreasonably withheld;
(d) Such Ground Lease is in full force and effect, and the Ground
Lease provides that no material amendment to such Ground Lease is binding
on a mortgagee unless the mortgagee has consented thereto, and the Seller
has received no notice that an event of default has occurred thereunder,
and, to the Seller's knowledge, there exists no condition that, but for
the passage of time or the giving of notice, or both, would result in an
event of default under the terms of such Ground Lease;
(e) Such Ground Lease, or an estoppel letter or other agreement, (A)
requires the lessor under such Ground Lease to give notice of any default
by the lessee to the holder of the Mortgage; and (B) provides that no
notice of termination given under such Ground Lease is effective against
the holder of the Mortgage unless a copy of such notice has been delivered
to such holder and the lessor has offered or is required to enter into a
new lease with such holder on terms that do not materially vary from the
economic terms of the Ground Lease.
(f) A mortgagee is permitted a reasonable opportunity (including,
where necessary, sufficient time to gain possession of the interest of the
lessee under such Ground Lease) to cure any default under such Ground
Lease, which is curable after the receipt of notice of any such default,
before the lessor thereunder may terminate such Ground Lease;
(g) Such Ground Lease has an original term (including any extension
options set forth therein) which extends not less than twenty years beyond
the Stated Maturity Date of the related Mortgage Loan;
(h) Under the terms of such Ground Lease and the related Mortgage,
taken together, any related insurance proceeds or condemnation award
awarded to the holder of the ground lease interest will be applied either
(A) to the repair or restoration of all or part of the related Mortgaged
Property, with the mortgagee or a trustee appointed by the related
Mortgage having the right to hold and disburse such proceeds as the repair
or restoration progresses (except in such cases where a provision
entitling a third party to hold and disburse such proceeds would not be
viewed as commercially unreasonable by a prudent commercial mortgage
lender), or (B) to the payment of the outstanding principal balance of the
Mortgage Loan together with any accrued interest thereon;
(i) Such Ground Lease does not impose any restrictions on subletting
which would be viewed as commercially unreasonable by prudent commercial
mortgage lenders lending on a similar Mortgaged Property in the lending
area where the Mortgaged Property is located; and such Ground Lease
contains a covenant that the lessor thereunder is not permitted, in the
absence of an uncured default, to disturb the possession, interest or
quiet enjoyment of the lessee thereunder for any reason, or in any manner,
which would materially adversely affect the security provided by the
related Mortgage;
(j) Such Ground Lease requires the Lessor to enter into a new lease
upon termination of such Ground Lease if the Ground Lease is rejected in a
bankruptcy proceeding; and
(k) Such Ground Lease may not be amended or modified or any such
amendment or modification will not be effective against the mortgagee
without the prior written consent of the mortgagee under such Mortgage
Loan, and any such action without such consent is not binding on such
mortgagee, its successors or assigns; provided, however, that termination
or cancellation without such consent may be binding on the mortgagee if
(i) an event of default occurs under the Ground Lease, (ii) notice is
provided to the mortgagee and (iii) such default is curable by the
mortgagee as provided in the Ground Lease but remains uncured beyond the
applicable cure period.
(18) Escrow Deposits. All escrow deposits and payments relating to each
Mortgage Loan that are, as of the Closing Date, required to be deposited or paid
have been so deposited or paid.
(19) LTV Ratio. The gross proceeds of each Mortgage Loan to the related
Mortgagor at origination did not exceed the non-contingent principal amount of
the Mortgage Loan and either: (a) such Mortgage Loan is secured by an interest
in real property having a fair market value (i) at the date the Mortgage Loan
was originated, at least equal to 80 percent of the original principal balance
of the Mortgage Loan or (ii) at the Closing Date, at least equal to 80 percent
of the principal balance of the Mortgage Loan on such date; provided that for
purposes hereof, the fair market value of the real property interest must first
be reduced by (x) the amount of any lien on the real property interest that is
senior to the Mortgage Loan and (y) a proportionate amount of any lien that is
in parity with the Mortgage Loan (unless such other lien secures a Mortgage Loan
that is cross-collateralized with such Mortgage Loan, in which event the
computation described in clauses (a)(i) and (a)(ii) of this paragraph 19 shall
be made on a pro rata basis in accordance with the fair market values of the
Mortgaged Properties securing such cross-collateralized Mortgage Loans); or (b)
substantially all the proceeds of such Mortgage Loan were used to acquire,
improve or protect the real property that served as the only security for such
Mortgage Loan (other than a recourse feature or other third party credit
enhancement within the meaning of Treasury Regulations Section
1.860G-2(a)(1)(ii)).
(20) Mortgage Loan Modifications. Any Mortgage Loan that was
"significantly modified" prior to the Closing Date so as to result in a taxable
exchange under Section 1001 of the Code either (a) was modified as a result of
the default under such Mortgage Loan or under circumstances that made a default
reasonably foreseeable or (b) satisfies the provisions of either clause (a)(i)
of paragraph 19 (substituting the date of the last such modification for the
date the Mortgage Loan was originated) or clause (a)(ii) of paragraph 19,
including the proviso thereto.
(21) Advancement of Funds by the Seller. No holder of a Mortgage Loan has
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 such Mortgage Loan.
(22) No Mechanics' Liens. Each Mortgaged Property is free and clear of any
and all mechanics' and materialmen's liens that are prior or equal to the lien
of the related Mortgage, except, in each case, for liens insured against by the
Title Policy referred to herein, and no rights are outstanding that under law
could give rise to any such lien that would be prior or equal to the lien of the
related Mortgage except, in each case, for liens insured against by the Title
Policy referred to herein.
(23) Compliance with Laws. Except as otherwise specifically disclosed in
an exception on Schedule A attached hereto to another representation and
warranty made by the seller in this Exhibit 2, at origination, each Mortgage
Loan complied with all applicable federal, state and local statutes and
regulations. Each Mortgage Loan complied with (or is exempt from) all applicable
usury laws in effect at its date of origination.
(24) Cross-collateralization. No Mortgage Loan is cross-collateralized or
cross-defaulted with any loan other than one or more other Mortgage Loans.
(25) Releases of Mortgaged Property. Except as described in the next
sentence, no Mortgage Note or Mortgage requires the mortgagee to release all or
any material portion of the related Mortgaged Property that was included in the
appraisal for such Mortgaged Property, and/or generates income from the lien of
the related Mortgage except upon payment in full of all amounts due under the
related Mortgage Loan or in connection with the defeasance provisions of the
related Note and Mortgage. The Mortgages relating to those Mortgage Loans
identified on Schedule A hereto require the mortgagee to grant releases of
portions of the related Mortgaged Properties upon (a) the satisfaction of
certain legal and underwriting requirements and/or (b) the payment of a release
price and prepayment consideration in connection therewith. Except as described
in the first sentence hereof and for those Mortgage Loans identified on Schedule
A, no Mortgage Loan permits the full or partial release or substitution of
collateral unless the mortgagee or servicer can require the Mortgagor to provide
an opinion of tax counsel to the effect that such release or substitution of
collateral (a) would not constitute a "significant modification" of such
Mortgage Loan within the meaning of Treas. Reg. ss.1.860G-2(b)(2) and (b) would
not cause such Mortgage Loan to fail to be a "qualified mortgage" within the
meaning of Section 860G(a)(3)(A) of the Code. The loan documents require the
related Mortgagor to bear the cost of such opinion.
(26) No Equity Participation or Contingent Interest. No Mortgage Loan
contains any equity participation by the lender or provides for negative
amortization (except that the ARD Loan may provide for the accrual of interest
at an increased rate after the Anticipated Repayment Date) or for any contingent
or additional interest in the form of participation in the cash flow of the
related Mortgaged Property.
(27) No Material Default. To the Seller's knowledge, there exists no
material default, breach, violation or event of acceleration (and no event
which, with the passage of time or the giving of notice, or both, would
constitute any of the foregoing) under the documents evidencing or securing the
Mortgage Loan, in any such case to the extent the same materially and adversely
affects the value of the Mortgage Loan and the related Mortgaged Property;
provided, however, that this representation and warranty does not address or
otherwise cover any default, breach, violation or event of acceleration that
specifically pertains to any matter otherwise covered by any other
representation and warranty made by the Seller elsewhere in this Exhibit 2 or
the exceptions listed in Schedule A attached hereto.
(28) Inspections. The Seller (or if the Seller is not the originator, the
originator of the Mortgage Loan) has inspected or caused to be inspected each
Mortgaged Property in connection with the origination of the related Mortgage
Loan.
(29) Local Law Compliance. Based on due diligence considered reasonable by
prudent commercial mortgage lenders in the lending area where the Mortgaged
Property is located, the improvements located on or forming part of each
Mortgaged Property comply with applicable zoning laws and ordinances, or
constitute a legal non-conforming use or structure or, if any such improvement
does not so comply, such non-compliance does not materially and adversely affect
the value of the related Mortgaged Property, such value as determined by the
appraisal performed at origination or in connection with the sale of the related
Mortgage Loan by the Seller hereunder.
(30) Junior Liens. None of the Mortgage Loans permits the related
Mortgaged Property to be encumbered by any lien (other than a Permitted
Encumbrance) junior to or of equal priority with the lien of the related
Mortgage without the prior written consent of the holder thereof or the
satisfaction of debt service coverage or similar criteria specified therein. The
Seller has no knowledge that any of the Mortgaged Properties is encumbered by
any lien (other than a Permitted Encumbrance) junior to the lien of the related
Mortgage.
(31) Actions Concerning Mortgage Loans. To the knowledge of the Seller,
there are no actions, suits or proceedings before any court, administrative
agency or arbitrator concerning any Mortgage Loan, Mortgagor or related
Mortgaged Property that might adversely affect title to the Mortgaged Property
or the validity or enforceability of the related Mortgage or that might
materially and adversely affect the value of the Mortgaged Property as security
for the Mortgage Loan or the use for which the premises were intended.
(32) Servicing. The servicing and collection practices used by the Seller
or any prior holder or servicer of each Mortgage Loan have been in all material
respects legal, proper and prudent and have met customary industry standards.
(33) Licenses and Permits. To the Seller's knowledge, based on due
diligence that it customarily performs in the origination of comparable mortgage
loans, as of the date of origination of each Mortgage Loan or as of the date of
the sale of the related Mortgage Loan by the Seller hereunder, the related
Mortgagor was in possession of all material licenses, permits and franchises
required by applicable law for the ownership and operation of the related
Mortgaged Property as it was then operated.
(34) Collateral in Trust. The Mortgage Note for each Mortgage Loan is not
secured by a pledge of any collateral that has not been assigned to the
Purchaser.
(35) Due on Sale. Each Mortgage Loan contains a "due on sale" clause,
which provides for the acceleration of the payment of the unpaid principal
balance of the Mortgage Loan if, without prior written consent of the holder of
the Mortgage, the property subject to the Mortgage or any material portion
thereof, or a controlling interest in the related Mortgagor, is transferred,
sold or encumbered by a junior mortgage or deed of trust; provided, however,
that certain Mortgage Loans provide a mechanism for the assumption of the loan
by a third party upon the Mortgagor's satisfaction of certain conditions
precedent, and upon payment of a transfer fee, if any, or transfer of interests
in the Mortgagor or constituent entities of the Mortgagor to a third party or
parties related to the Mortgagor upon the Mortgagor's satisfaction of certain
conditions precedent.
(36) Non-Recourse Exceptions. The Mortgage Loan documents for each
Mortgage Loan provide that such Mortgage Loan constitutes either (a) the
recourse obligations of at least one natural person or (b) the non-recourse
obligations of the related Mortgagor, provided that at least one natural person
(and the Mortgagor if the Mortgagor is not a natural person) is liable to the
holder of the Mortgage Loan for damages arising in the case of fraud or willful
misrepresentation by the Mortgagor, misappropriation of rents, insurance
proceeds or condemnation awards and breaches of the environmental covenants in
the Mortgage Loan documents.
(37) REMIC Eligibility. Each Mortgage Loan is a "qualified mortgage" as
such term is defined in Section 860G(a)(3) of the Code (without regard to
Treasury Regulations Section 1.860G-2(f)(2), which treats certain defective
mortgage loans as qualified mortgages).
(38) Prepayment Premiums. As of the applicable date of origination of each
such Mortgage Loan, any prepayment premiums and yield maintenance charges
payable under the terms of the Mortgage Loans, in respect of voluntary
prepayments, constituted customary prepayment premiums and yield maintenance
charges for commercial mortgage loans of the Seller.
(39) [Reserved].
(40) Single Purpose Entity. The Mortgagor on each Mortgage Loan with a
Cut-Off Date Principal Balance in excess of $10 million, was, as of the
origination of the Mortgage Loan, a Single Purpose Entity. For this purpose, a
"Single Purpose Entity" shall mean an entity, other than an individual, whose
organizational documents provide substantially to the effect that it was formed
or organized solely for the purpose of owning and operating one or more of the
Mortgaged Properties securing the Mortgage Loans and prohibit it from engaging
in any business unrelated to such Mortgaged Property or Properties, and whose
organizational documents further provide, or which entity represented in the
related Mortgage Loan documents, substantially to the effect that it does not
have any assets other than those related to its interest in, and operation of,
such Mortgaged Property or Properties, or any indebtedness other than as
permitted by the related Mortgage(s) or the other related Mortgage Loan
documents, that it has its own books and records and accounts separate and apart
from any other person (other than a Mortgagor for a Mortgage Loan that is
cross-collateralized and cross-defaulted with the related Mortgage Loan), and
that it holds itself out as a legal entity, separate and apart from any other
person.
(41) Defeasance and Assumption Costs. The related Mortgage Loan Documents
provide that the related borrower is responsible for the payment of all
reasonable costs and expenses of the Lender incurred in connection with (i) the
defeasance of such Mortgage Loan and the release of the related Mortgaged
Property, and (ii) the approval of an assumption of such Mortgage Loan.
(42) Defeasance. No Mortgage Loan provides that it can be defeased until a
date that is more than two years after the Closing Date or provides that it can
be defeased with any property other than government securities (as defined in
Section 2(a)(16) of the Investment Company Act of 1940, as amended) or any
direct non-callable security issued or guaranteed as to principal or interest by
the United States.
(43) Authorized to do Business. To the extent required under applicable
law as of the date of origination, and necessary for the enforceability or
collectability of the Mortgage Loan, the originator of such Mortgage Loan was
authorized to do business in the jurisdiction in which the related Mortgaged
Property is located at all times when it originated and held the Mortgage Loan.
(44) Terrorism Insurance. With respect to each Mortgage Loan that has a
Stated Principal Balance as of the Cut-Off Date that is greater than or equal to
$20,000,000, the related all risk insurance policy and business interruption
policy do not specifically exclude acts of terrorism from coverage. With respect
to each other Mortgage Loan, the related all risk insurance policy and business
interruption policy did not, as of the date of origination of the Mortgage Loan,
and, to the Mortgage Loan Seller's knowledge, does not as of the date hereof,
specifically exclude acts of terrorism from coverage. With respect to each of
the Mortgage Loans, the related Mortgage Loan Documents do not expressly waive
or prohibit the mortgagee from requiring coverage for acts of terrorism or
damages related thereto, except to the extent that any right to require such
coverage may be limited by commercially reasonable availability, or as otherwise
indicated on Schedule A.
(45) Operating Statements and Rent Rolls. In the case of each Mortgage
Loan, the related Mortgage Loan Documents require the related Mortgagor, in some
cases at the request of the lender, to provide to the holder of such Mortgage
Loan operating statements and rent rolls not less frequently than annually
(except if the Mortgage Loan has an outstanding principal balance of less than
or equal to $3,500,000 as of the Cut-Off Date or the related Mortgaged Property
has only one tenant, in either of which cases, the Mortgage Loan Documents
require the Mortgagor, in some cases at the request of the lender, to provide to
the holder of such Mortgage Loan operating statements and (if there is more than
one tenant) rent rolls and/or financial statements of the Mortgagor annually),
and such other information as may be required therein.
(46) An appraisal of the related Mortgaged Property was conducted in
connection with the origination of such Mortgage Loan, and such appraisal
satisfied the guidelines in Title XI of the Financial Institutions Reform,
Recovery and Enforcement Act of 1989, as in effect on the date such Mortgage
Loan was originated.
SCHEDULE III
XXXX 0000-XX00
Xxxxx Xxxx xx Xxxxxx Loans (RBC Pool 3)
Exceptions to Representations and Warranties
1. Mortgage Loan Schedule
2. Whole Loan; Ownership of Mortgage Loans.
3. Payment Record.
4. Lien; Valid Assignment.
o Beechgrove (110964) ($7,500,000): 40 (10 one-bedroom units and 3-
two-bedroom units) of 304 units have Section 8 HAP contracts; The
underlying HAP contract expires 09.30.2014 (loan maturity is
07.01.2017; Current market rates as underwritten are less then HAP
contract-allowed market rates
5. Assignment of Leases and Rents.
6. Mortgage Status; Waivers and Modifications
o Metroplex (109333)( $48,000,000): Loan documents amended post-
closing to (i) provide that Xxxx X. Xxx is personally liable for the
amount of $7 million of the up to $7 million related loan amount,
and (ii) extend the eligibility date on the required holdback
impound from 07.01.2010 to 07.01.2011
7. Condition of Property; Condemnation.
8. Title Insurance
9. No Holdbacks.
10. Mortgage Provisions.
11. Trustee under Deed of Trust.
12. Environmental Conditions.
13. Loan Document Status.
14. Insurance.
o All RBC-originated Loans: The loan documents for various mortgaged
properties generally require property insurance against fire and
other hazards that would be covered by a standard extended and
all-risk insurance policy not specifically mention windstorm, issued
and do hail, lightning, explosion, riot, riot attending a strike,
civil commotion, aircraft, vehicles and smoke
o The Shoppes At Xxxxxx (110961) ($9,300,000): With respect to portion
of property leased by SuperValu, Borrower's obligation to provide
required casualty, rent loss, comprehensive general liability and
terrorism insurance subject to certain conditions, suspended
including (i) tenant's maintaining lease-required insurance or
elects to self-insure as provided in its lease; and (ii) SuperValu's
maintaining S & P credit rating of "BB-" or better
15. Taxes and Assessments.
16. Mortgagor Bankruptcy.
17. Leasehold Estate.
18. Escrow Deposits.
19. LTV Ratio.
20. Mortgage Loan Modifications.
21. Advancement of Funds by the Seller.
22. No Mechanics' Liens.
23. Compliance with Usury Laws.
24. Cross-collateralization.
25. Releases of Mortgage Property.
Schedule A (Loans with Partial Release and/or Partial Defeasance
Features)
x Xxxxxxx Portfolio (110574)($65,000,000): Following defeasance
lockout period, Borrower permitted to release any of 3 of 5
constituent parcels (Cherry Grove and Camellia Trace are not
susceptible to release) in connection with partial defeasance
subject to certain conditions, including (A) partial defeasance in
an amount equal to 125% of the allocated loan amount for the
released property, (B) following the release, the remaining
properties have a loan to value ratio of not more than 80%, (C)
following the release, the remaining properties have a debt service
coverage ratio at least equal to or greater than 1.25x; and (D) if
required by applicable rating agencies or pooling and servicing
agreement, "no downgrade" confirmation from applicable rating
agencies
o Jonesboro (111702) ($13,700,000): Following defeasance lockout
period, Borrower permitted to release either of constituent parcels
in connection with partial defeasance subject to certain conditions,
including (A) partial defeasance in an amount equal to 125% of the
allocated loan amount for the released property, (B) following the
release, the remaining properties have a loan to value ratio of not
more than 75%, (C) following the release, the remaining properties
have a debt service coverage ratio at least equal to or greater than
1.25x; and (D) if required by applicable rating agencies or pooling
and servicing agreement, "no downgrade" confirmation from applicable
rating agencies
o Evergreen - IH 10 & Floresville (111281) ($10,800,000): Following
defeasance lockout period, Borrower permitted to release either of
constituent parcels in connection with partial defeasance subject to
certain conditions, including (A) partial defeasance in an amount
equal to 125% of the allocated loan amount for the released
property, (B) following the release, the remaining properties have a
loan to value ratio of not more than 70%, (C) following the release,
the remaining properties have a debt service coverage ratio at least
equal to or greater than 1.40x; and (D) if required by applicable
rating agencies or pooling and servicing agreement, "no downgrade"
confirmation from applicable rating agencies
26. No Equity Participation or Contingent Interest.
27. No Material Default.
28. Inspections.
29. Local Law Compliance.
o Amber Valley Retail Center (110960) ($6,150,000): Property owner has
been notified of zoning violation with respect to parking (260
spaces provided vs. 347 required) and 2 ft encroachment by buildings
into front setback; Violation apparently stems from changes to more
parking intensive uses (i.e. restaurants) on property since time of
original approval; Borrower required to pursue variance application;
Zoning endorsement obtained, $75,000 escrow required at closing (to
be released upon evidence of zoning compliance) and loan is full
recourse to warm body guarantor until evidence of zoning compliance
delivered
o Siete Shopping Center (111037) ($5,023,000): Property owner has been
notified of zoning violation for deficient parking (arising out of
conversion of retail use to nightclub use); Owner and City of
Phoenix are currently litigating matter; 207 spaces provided vs.
indeterminate amount required; $64,000 litigation escrow required at
closing and carve-out obtained regarding related losses
30. Junior Liens
31. Actions Concerning Mortgage Loans.
o Siete Shopping Center (111037) ($5,023,000): Property owner has been
notified of zoning violation for deficient parking (arising out of
conversion of retail use to nightclub use); Owner and City of
Phoenix are currently litigating matter; 207 spaces provided vs.
indeterminate amount required; $64,000 litigation escrow required at
closing and carve-out obtained regarding related losses
32. Servicing.
33. Licenses and Permits.
34. Collateral in Trust.
35. Due on Sale.
36. Non-Recourse Exceptions.
o Metroplex (109333)($48,000,000): No warm body carve-out guarantor
(Fox General Indemnitor, LLC); As of 03.01.07, such guarantor had a
stated net worth of approximately $595,241 and liquidity of
approximately $595,241; Additionally, sponsor (Xxxx X. Xxx) is
personally liable for up to $7 million of the related loan amount
o Steadfast Heritage(109122)($37,500,000): No warm body carve-out
guarantor (Beacon Bay Holdings, LLC) As of 12.31.06, such guarantor
had a stated net worth of approximately $117 million and liquidity
of approximately $7 million
o Lynnwood (109334) ($22,168,000): No warm body carve-out guarantor
(Fox General Indemnitor, LLC); As of 03.01.07, such guarantor had a
stated net worth of approximately $595,241 and liquidity of
approximately $595,241
o Ahwatukee Xxxxxxx (109048)( $13,483,000): No warm body carve-out
guarantor (Fox General Indemnitor, LLC) As of 03.01.07, such
guarantor had a stated net worth of approximately $595,241 and
liquidity of approximately $595,241
o Woodcreek Village (110558) ( $10,400,000): No warm body carve-out
guarantor (Fox General Indemnitor, LLC); As of 03.01.07, such
guarantor had a stated net worth of approximately $595,241 and
liquidity of approximately $595,241
o Manhattan Beach Mall (109321) ($10,191,000): No warm body carve-out
guarantor (Fox General Indemnitor, LLC); As of 03.01.07, such
guarantor had a stated net worth of approximately $595,241 and
liquidity of approximately $595,241 Provinces (109330) ($9,585,000):
No warm body carve-out guarantor (Fox General Indemnitor, LLC); As
of 03.01.07, such guarantor had a stated net worth of approximately
$595,241 and liquidity of approximately $595,241
o Beechgrove (110964) ($7,500,000): No warm body carve-out guarantor
(Community Reinvestment Foundation, Inc.) As of 12.31.06, such
guarantor had a stated net worth of approximately $7 million and
liquidity of approximately $42,590; Guarantor is a non-profit
corporation
o Devon Ocala (110598) ($4,025,000): No carve-out guarantor (SPE
Borrower only)
37. REMIC Eligibility.
38. Prepayment Premiums.
39. Reserved
40. Single-Purpose Entity.
41. Defeasance and Assumption Costs.
42. Defeasance.
43. Authorized to do Business.
44. Terrorism Insurance.
o Metroplex (109333)($48,000,000): Terrorism insurance required for
foreign acts only, to extent available at commercially reasonable
rates; Premium capped at 150% of current portion allocable to
terrorism insurance
o Lynnwood (109334) ($22,168,000): Terrorism insurance required for
foreign acts only, to extent available at commercially reasonable
rates; Premium capped at 150% of current portion allocable to
terrorism insurance
o Ahwatukee Xxxxxxx (109048)( $13,483,000): Terrorism insurance
required for foreign acts only, to extent available at commercially
reasonable rates; Premium capped at 150% of current portion
allocable to terrorism insurance
o Woodcreek Village (110558) ( $10,300,000): Terrorism insurance
required for foreign acts only, to extent available at commercially
reasonable rates; Premium capped at 150% of current portion
allocable to terrorism insurance
o Manhattan Beach Mal l(109321) ($10,191,000): Terrorism insurance
required for foreign acts only, to extent available at commercially
reasonable rates; Premium capped at 150% of current portion
allocable to terrorism insurance
o Provinces (109330) ($9,585,000): Terrorism insurance required for
foreign acts only, to extent available at commercially reasonable
rates; Premium capped at 150% of current portion allocable to
terrorism insurance
45. Operating Statements and Rent Rolls .
EXHIBIT 3
XXXX OF SALE
1. Parties. The parties to this Xxxx of Sale are the following:
Seller: Royal Bank of Canada
Purchaser: Xxxxxx Xxxxxxx Capital I Inc.
2. Sale. For value received, the Seller hereby conveys to the
Purchaser, without recourse, all right, title and interest in and to the
Mortgage Loans identified on Exhibit 1 (other than the servicing rights thereto)
(the "Mortgage Loan Schedule") to the Mortgage Loan Purchase Agreement, dated as
of August 1, 2007 (the "Mortgage Loan Purchase Agreement"), between the Seller
and the Purchaser and all of the following property:
(a) All accounts, general intangibles, chattel paper, instruments,
documents, money, deposit accounts, certificates of deposit, goods,
letters of credit, advices of credit and investment property consisting
of, arising from or relating to any of the following property: the
Mortgage Loans identified on the Mortgage Loan Schedule including the
related Mortgage Notes, Mortgages, security agreements, and title, hazard
and other insurance policies, all distributions with respect thereto
payable after the Cut-Off Date, all substitute or replacement Mortgage
Loans and all distributions with respect thereto, and the Mortgage Files;
(b) All accounts, general intangibles, chattel paper, instruments,
documents, money, deposit accounts, certificates of deposit, goods,
letters of credit, advices of credit, investment property, and other
rights arising from or by virtue of the disposition of, or collections
with respect to, or insurance proceeds payable with respect to, or claims
against other Persons with respect to, all or any part of the collateral
described in clause (a) above (including any accrued discount realized on
liquidation of any investment purchased at a discount); and
(c) All cash and non-cash proceeds of the collateral described in
clauses (a) and (b) above.
3. Purchase Price. $_____ (including accrued interest).
4. Definitions. Terms used but not defined herein shall have the
meanings assigned to them in the Mortgage Loan Purchase Agreement.
IN WITNESS WHEREOF, each of the parties hereto has caused this Xxxx
of Sale to be duly executed and delivered on this __ day of August, 2007.
SELLER: ROYAL BANK OF CANADA
By: _____________________________________
Name:
Title:
PURCHASER: XXXXXX XXXXXXX CAPITAL I INC.
By: _____________________________________
Name:
Title:
EXHIBIT 4
FORM OF LIMITED POWER OF ATTORNEY
THIS DOCUMENT PREPARED BY,
AND AFTER RECORDING RETURN TO:
Capmark Finance Inc.
000 Xxxxxx Xxxx
Xxxxxxx, Xxxxxxxxxxxx 00000
Centerline Servicing, Inc.
0000 Xxxxx X'Xxxxxx Xxxxxxxxx
Xxxxxx, Xxxxx 00000
Xxxxx Fargo Bank, National Association
Corporate Trust Office
0000 Xxx Xxxxxxxxx Xxxx
Xxxxxxxx, Xxxxxxxx 00000-0000
Attention: Corporate Trust Services (CMBS)
Xxxxxx Xxxxxxx Capital I Inc., Series 2007-IQ15
LIMITED POWER OF ATTORNEY
Know all persons by these presents; that the undersigned in its
capacity as Seller, having an address of Xxx Xxxxxxx Xxxxx, Xxx Xxxx, Xxx Xxxx
00000, Attention: Xxxxx Xxxxxx (the "Seller"), being duly empowered and
authorized to do so, does hereby make, constitute and appoint Capmark Finance
Inc., having an address of 000 Xxxxxx Xxxx, Xxxxxxx, Xxxxxxxxxxxx 00000 (the
"Master Servicer"), Centerline Servicing, Inc. (formerly ARCap Servicing, Inc.),
having an address of 0000 Xxxxx X'Xxxxxx Xxxxxxxxx, Xxxxxx, Xxxxx 00000,
Attention: Xxx X. Xxxxx (the "Special Servicer"), and Xxxxx Fargo Bank, National
Association, having an address of Corporate Trust Office, 0000 Xxx Xxxxxxxxx
Xxxx, Xxxxxxxx, Xxxxxxxx 00000-0000, Attention: Corporate Trust Services (CMBS)
- Xxxxxx Xxxxxxx Capital I Inc., Series 2007-IQ15 (the "Trustee") as the true
and lawful attorneys-in-fact for the undersigned, in its name, place and stead,
and for its use and benefit:
1. To empower the Trustee, the Master Servicer and, in the event of
the failure or incapacity of the Trustee and the Master Servicer, the Special
Servicer, to submit for recording, at the expense of the Seller, any mortgage
loan documents required to be recorded as described in the Pooling and Servicing
Agreement, dated as of August 1, 2007 (the "Pooling and Servicing Agreement"),
among Xxxxxx Xxxxxxx Capital I Inc., as Depositor, the Master Servicer, the
Prudential Master Servicer, the General Special Servicer, the XX Xxxxxx Special
Servicer, the Trustee and the Paying Agent with respect to the Trust and any
intervening assignments with evidence of recording thereon that are required to
be included in the Mortgage File (so long as original counterparts have
previously been delivered to the Trustee).
2. This power of attorney shall be limited to the above-mentioned
exercise of power.
3. This instrument is to be construed and interpreted as a limited
power of attorney. The enumeration of specific items, rights, acts or powers
herein is not intended to, nor does it give rise to, and it is not intended to
be construed as, a general power of attorney.
4. The rights, power of authority of said attorney herein granted
shall commence and be in full force and effect on the date hereof and such
rights, powers and authority shall remain in full force and effect until the
termination of the Pooling and Servicing Agreement.
Capitalized terms used herein but not defined herein shall have the
meanings assigned to them in the Pooling and Servicing Agreement.
IN WITNESS WHEREOF, I have hereunto set my hand this __ day of August 2007.
Witnessed by: ROYAL BANK OF CANADA
___________________________ By:________________________
Print Name: Name:
Title:
STATE OF______________________)
COUNTY OF_____________________)
On __________________________, before me, a Notary Public in and for said
county, personally appeared ________________________________, personally known
to me (or proved to me on the basis of satisfactory evidence) to be the person
whose name is subscribed to the within instrument and acknowledged to me that
he/she executed the same in his/her authorized capacity, and that by his/her
signature on the instrument the person acted and executed the instrument.
Witness my hand and official seal.
_______________________________________
Commission Expires:
