Exhibit 99.7
ASSIGNMENT AGREEMENT
ASSIGNMENT AGREEMENT, dated as of March 29, 2006 ("Assignment
Agreement"), among COUNTRYWIDE HOME LOANS, INC. ("Assignor"), THE BANK OF NEW
YORK ("Assignee"), not in its individual or corporate capacity but solely as
Swap Contract Administrator for CWABS, Inc. Asset-Backed Certificates Series
2006-6, pursuant to a Swap Contract Administration Agreement (the "Swap
Contract Administration Agreement") dated as of March 29, 2006, and BARCLAYS
BANK PLC ("Remaining Party").
W I T N E S S E T H:
WHEREAS, effective as of March 29, 2006, Assignor desires to assign
all of its rights and delegate all of its duties and obligations to Assignee
under a certain Transaction (the "Assigned Transaction") as evidenced by a
certain confirmation with a Trade Date of March 20, 2006, whose BARCLAYS BANK
PLC reference number is 1126878B (the "Confirmation"), a copy of which is
attached hereto as Exhibit I;
WHEREAS, Assignor and Remaining Party executed and delivered the
Confirmation in connection with, and as part of, the ISDA Master Agreement
dated as of May 17, 1996, as amended or supplemented from time to time (the
"Old Master Agreement"), between Assignor and Remaining Party;
WHEREAS, Assignee desires to accept the assignment of rights and
assume the delegation of duties and obligations of the Assignor under the
Assigned Transaction and the Confirmation, including any modifications that
may be agreed to by Assignee and Remaining Party; and
WHEREAS, Assignor desires to obtain the written consent of Remaining
Party to the assignment, delegation and assumption, and Remaining Party
desires to grant such consent in accordance with the terms hereof.
NOW, THEREFORE, in consideration of the premises and of the mutual
agreements herein contained and for good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties agree as
follows:
1. Assignment and Assumption. Effective as of and from March 29, 2006
(the "Effective Date"), Assignor hereby assigns all of its rights and
delegates all of its duties and obligations to Assignee, and Assignee hereby
assumes all Assignor's rights, duties, and obligations, under the Assigned
Transaction and the Confirmation arising on or after the Effective Date.
2. Release. Effective as of and from the Effective Date, Remaining
Party and Assignor hereby release one another from all duties and obligations
owed under and in respect of the Assigned Transaction and the Confirmation,
and Assignor hereby terminates its rights under
and in respect of the Assigned Transaction; provided, that such release shall
not affect Assignor's obligation to pay the Upfront Amount in accordance with
the terms of the Assigned Transaction and the Confirmation.
3. Limitation on Liability. Assignor and Remaining Party agree to the
following: (a) The Bank of New York ("BNY") is entering into this Assignment
Agreement not in its individual or corporate capacity, but solely in its
capacity as Swap Contract Administrator under the Swap Contract Administration
Agreement; (b) in no case shall BNY (or any person acting as successor Swap
Contract Administrator under the Swap Contract Administration Agreement) be
personally liable for or on account of any of the statements, representations,
warranties, covenants or obligations stated to be those of Assignee under the
terms of the Assigned Transaction, all such liability, if any, being expressly
waived by Assignor and Remaining Party and any person claiming by, through or
under either such party; and (c) recourse against BNY shall be limited to the
assets available under the Swap Contract Administration Agreement or the
Pooling and Servicing Agreement for CWABS, Inc. Asset-Backed Certificates
Series 2006-6 dated as of March 1, 2006 among CWABS, Inc. as depositor, Park
Monaco Inc., as a Seller, Park Sienna LLC, as a Seller, Countrywide Home
Loans, Inc. as a seller, Countrywide Home Loans Servicing LP, as master
servicer, and BNY, as trustee.
4. Consent and Acknowledgment of Remaining Party. Remaining Party
hereby consents to the assignment and delegation by Assignor to Assignee of
all the rights, duties, and obligations of Assignor under the Assigned
Transaction pursuant to this Assignment Agreement.
5. Governing Agreement. The Assigned Transaction and the Confirmation
shall form a part of, and be subject to, the ISDA Master Agreement dated as of
March 29, 2006, as amended or supplemented from time to time (the "New Master
Agreement"), between Assignee and Remaining Party. The Confirmation shall form
a part of, and be subject to, the New Master Agreement.
6. Representations. Each party hereby represents and warrants to the
other parties as follows:
(a) It is duly organized, validly existing and in good standing
under the laws of its jurisdiction of organization or
incorporation;
(b) It has the power to execute and deliver this Assignment
Agreement; and
(c) Its obligations under this Assignment Agreement constitute
its legal, valid and binding obligations, enforceable in
accordance with their respective terms.
As of the Effective Date, each of Assignor and Remaining Party
represents that no event or condition has occurred that constitutes an Event
of Default, a Potential Event of Default or, to the party's knowledge, a
Termination Event (as such terms are defined in the Confirmation and the New
Master Agreement), with respect to the party, and no such event would occur as
a result of the party's entering into or performing its obligations under this
Assignment Agreement.
7. Indemnity. Assignor hereby agrees to indemnify and hold harmless
Assignee with respect to any and all claims arising under the Assigned
Transaction prior to the Effective
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Date. Assignee (subject to the limitations set forth in paragraph 3 above)
hereby agrees to indemnify and hold harmless Assignor with respect to any and
all claims arising under the Assigned Transaction on or after the Effective
Date.
8. Governing Law. This Assignment Agreement shall be governed by and
construed in accordance with the laws of the State of New York without
reference to the conflict of laws provisions thereof (except Section 5-1401
and 5-1402 of the New York General Obligations Law).
9. Notices. For the purposes of this Assignment Agreement and Section
12(a) of the Old Master Agreement and New Master Agreement, as applicable, the
addresses for notices or communications are as follows: (i) in the case of
Assignor, Countrywide Home Loans, Inc., 0000 Xxxx Xxxxxxx, Xxxxxxxxx,
Xxxxxxxxxx 00000, Attention: Xxxx Xxxxxxx, Xx., with a copy to the same
address, Attention: Legal Department, or such other address as may be
hereafter furnished in writing to Assignee and Remaining Party; (ii) in the
case of Assignee, The Bank of New York, 000 Xxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx
00000, Attention: Corporate Trust MBS Administration, CWABS, Series 2006-6 or
such other address as may be hereafter furnished in writing to Assignor and
Remaining Party; and (iii) in the case of Remaining Party,
Address: 0 Xxx Xxxxx Xxxxxxxxx
Xxxxxx Xxxxx
X00 0XX
Attention: London Department - Derivative Documentation
Tel No. 00(00) 000 00000
Fax No. 00(00) 000 00000
or such other address as may be hereafter furnished in writing to
Assignor and Assignee.
10. Payments. All payments (if any) remitted by Remaining Party under
the Assigned Transaction shall be made by wire transfer according to the
following instructions:
The Bank of New York
New York, NY
ABA # 000-000-000
GLA # 111-565
For Further Credit: TAS A/C 580193
Attn: Xxx Xxxxx Xxxxxxx 000-000-0000
Fax: 000-000-0000
11. Optional Termination.
(a) Upon the occurrence of an Optional Termination pursuant to
Section 9.01 of the Pooling and Servicing Agreement dated as
of March 1, 2006 among CWABS, Inc. as depositor, Park Monaco
Inc., as a Seller, Park Sienna LLC, as a Seller, Countrywide
Home Loans, Inc. as a seller, Countrywide Home Loans
Servicing LP, as master servicer, and The Bank of New York,
as trustee (the "Pooling and
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Servicing Agreement"), the definition of Notional Amount in
the Confirmation shall be deleted in its entirety and
replaced with the following:
"With respect to each Calculation Period the amount set
forth for such period in Annex A attached hereto multiplied
by a factor. The factor will be set at the time of the
Optional Termination to be the quotient of (i) the Notional
Amount immediately prior to the Optional Termination (which
for avoidance of doubt was the lesser of (a) the amount set
forth for such period in Annex A attached hereto and (b) the
aggregate Class Certificate Balance of the Class 1-A-1
Certificates, Class 1-A-1M Certificates, Class 2-A-1
Certificates, Class 2-A-2 Certificates, Class 2-A-3
Certificates, Class M-1 Certificates, Class M-2
Certificates, Class M-3 Certificates, Class M-4
Certificates, Class M-5 Certificates, Class M-6
Certificates, Class M-7 Certificates, Class M-8 Certificates
and Class B Certificates (as defined in the Pooling and
Servicing Agreement) immediately prior to the Optional
Termination) divided by (ii) the corresponding amount set
forth for such period in Annex A attached hereto."
(b) Upon the occurrence of an Optional Termination pursuant to
Section 9.01 of the Pooling and Servicing Agreement, The
Bank of New York, as Swap Contract Administrator for CWABS,
Inc. Asset-Backed Certificates Series 2006-6 (the "Swap
Contract Administrator"), pursuant to a Swap Contract
Administration Agreement, hereby assigns all of its rights
and delegates all of its duties and obligations to
Countrywide Home Loans, Inc., and Countrywide Home Loans,
Inc. hereby assumes all of the Swap Contract Administrator's
rights, duties, and obligations, under the Assigned
Transaction and the Confirmation arising on or after the
date on which the Trust Fund (as defined in the Pooling and
Servicing Agreement) is terminated pursuant to the terms
thereof.
(c) Effective as of and from the date on which the Trust Fund is
terminated pursuant to the terms thereof, Remaining Party
and the Swap Contract Administrator hereby release one
another from all duties and obligations owed under and in
respect of the Assigned Transaction and the Confirmation,
and the Swap Contract Administrator hereby terminates its
rights under and in respect of the Assigned Transaction.
Remaining Party hereby consents to the assignment and
delegation by the Swap Contract Administrator to Countrywide
Home Loans, Inc. of all the rights, duties, and obligations
of the Swap Contract Administrator under the Assigned
Transaction pursuant to this Assignment Agreement.
(d) Effective as of and from the date on which the Trust Fund is
terminated pursuant to the terms thereof, Remaining Party
hereby agrees that Countrywide Home Loans, Inc. may do one
of the following with the Swap Contract Administrator's
rights, duties, and obligations, under the Assigned
Transaction and the Confirmation arising on or about the
date on which the Trust Fund is terminated pursuant to the
terms thereof:
(i) retain such rights, duties, and obligations;
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(ii) assigns all of its rights and delegates all of
its duties and obligations to a third party effective upon
the receipt of written consent from Remaining Party to such
assignment; or
(iii) terminate the Assigned Transaction by giving
three Business Days' prior notice to Remaining Party (the
"Optional Termination Date"). On the Optional Termination
Date, if any, a termination payment (if any) shall be
payable by the applicable party as determined by the
Calculation Agent by the application of Section 6(e)(ii) of
the Agreement, with Market Quotation and Second Method being
the applicable method for determining the termination
payment. The exercise of the right to terminate under this
provision, shall not be an Event of Default under any of the
other Transactions that are part of the Old Master
Agreement. For purposes of the Optional Termination Date,
Countrywide Home Loans, Inc. shall be the sole Affected
Party.
12. Counterparts. This Assignment Agreement may be executed and
delivered in counterparts (including by facsimile transmission), each of which
when executed shall be deemed to be an original but all of which taken
together shall constitute one and the same instrument.
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IN WITNESS WHEREOF, the parties hereto have executed this Assignment
Agreement as of the date first above written.
COUNTRYWIDE HOME LOANS, INC.
By: /s/ Xxxx Xxxxxxx, Xx.
---------------------------------
Name: Xxxx Xxxxxxx, Xx.
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Title: Senior Vice President
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THE BANK OF NEW YORK, AS SWAP CONTRACT
ADMINISTRATOR FOR CWABS, INC. ASSET-BACKED
CERTIFICATES SERIES 2006-6
By: /s/ Xxxxxx Xxxxxxxx
---------------------------------
Name: Xxxxxx Xxxxxxxx
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Title: Assistant Vice President
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BARCLAYS BANK PLC
By: /s/ Xxxxx Xxxxx
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Name: Xxxxx Xxxxx
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Title: Authorised Signatory
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