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Exhibit 10.3
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June 3, 1999
Advanta Mortgage Loan Trust 1999-2 (the "Trust")
c/o Bankers Trust Company of California, N.A.
Three Xxxx Xxxxx
00xx Xxxxx
Xxxxxx, Xxxxxxxxxx 00000
Ambac Assurance Corporation
Xxx Xxxxx Xxxxxx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Re: Pooling and Servicing Agreement dated as of May 1, 1999 (the
"Pooling and Servicing Agreement") among Advanta Mortgage
Conduit Services, Inc. as the Sponsor (the "Sponsor"), Advanta
Mortgage Corp. USA ("AMCUSA"), as Master Servicer, and Bankers
Trust Company of California, N.A. as Trustee (the "Trustee")
and the Master Loan Transfer Agreement dated as of May 1, 1999
(the "Master Transfer Agreement") among the Sponsor, the
Trustee, Advanta Conduit Receivables, Inc. as an Affiliate and
the Affiliated Originators named therein (the "Affiliated
Originators")
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Ladies and Gentlemen:
Pursuant to the Pooling and Servicing Agreement and the
Transfer Agreement (the "Agreements"), AMCUSA in its capacity as Master
Servicer, has undertaken certain financial obligations with respect to its
servicing of the Mortgage Loans, including, but not limited to, the making of
Delinquency Advances and Servicing Advances. In addition, the Sponsor and the
Affiliated Originators have, in the Agreements undertaken certain financial
obligations, including, but not limited to, the payment of the Loan Purchase
Price relating to the repurchase of non-qualifying Mortgage Loans, the payment
of Substitution Amounts in connection with the substitution of Qualified
Replacement Mortgages and the payment of certain expenses of the Trust. Any
financial obligations of AMCUSA, the Sponsor or any Affiliated Originator under
either of the Agreements, whether or not specifically enumerated in this
paragraph, are hereinafter referred to as the "Joint and Several Obligations";
provided, however, that "Joint and Several Obligations" shall mean only the
financial obligations of AMCUSA, the Sponsor or any Affiliated Originator under
either of the Agreements (including the payment of money damages for a breach of
any of AMCUSA's, the Sponsor's or any Affiliated Originator's obligations under
either of the Agreements, whether financial or otherwise) but shall not include
any obligations not relating to the payment of money (e.g., the obligation to
service the Mortgage Loans).
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The Certificate Insurer has required the undersigned, Advanta
Mortgage Holding Company ("AMHC"), the parent corporation of AMCUSA and the
indirect corporate parent of the Sponsor, to acknowledge its joint-and-several
liability with AMCUSA, the Sponsor and the Affiliated Originators for the
payment of the Joint and Several Obligations under the Agreements.
Now, therefore, the Trust, the Certificate Insurer and AMHC do
hereby agree that:
(i) AMHC hereby agrees to be absolutely and
unconditionally jointly and severally liable with
AMCUSA, the Sponsor and the Affiliated Originators to
the Trust and the Certificate Insurer for the payment
of the Joint and Several Obligations.
(ii) AMHC may honor its obligations hereunder either by
direct payment of any Joint and Several Obligations
or by causing any Joint and Several Obligations to be
paid to the Trust and the Certificate Insurer by
AMCUSA, the Sponsor, any Affiliated Originator or
another affiliate of AMHC.
Capitalized terms used herein and not defined herein shall
have their respective meanings as set forth in the Agreement.
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Very truly yours,
ADVANTA MORTGAGE
HOLDING COMPANY
By:/s/ Xxxxxxx Xxxx
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Name: Xxxxxxx Xxxx
Title: Vice President
Acknowledged and Agreed:
ADVANTA MORTGAGE LOAN
TRUST, 1999-2, by Bankers Trust
Company of California, N.A. as Trustee
By:/s/ Xxxx XxXxxxx
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Name: Xxxx XxXxxxx
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Title: Vice President
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Acknowledged:
AMBAC ASSURANCE CORPORATION
By: /s/ Xxxxxx Xxxxx
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Name: Xxxxxx X. Xxxxx
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Title: First Vice President
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Dated: June 3, 1999
[Guaranty to the Trust]
