EXECUTION COPY
Exhibit 99.1
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XXXXXXX XXXXX MORTGAGE CAPITAL INC.,
SELLER
and
XXXXXXX XXXXX MORTGAGE INVESTORS, INC.,
PURCHASER
MORTGAGE LOAN SALE AND ASSIGNMENT AGREEMENT
Dated as of February 1, 2003
Xxxxxxx Xxxxx Mortgage Investors Trust
(Mortgage Loan Asset-Backed Certificates, Series 2003-WMC1)
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Table of Contents
Page
ARTICLE I CONVEYANCE OF MORTGAGE LOANS............................................... 5
Section 1.01. Sale of Mortgage Loans........................................ 5
Section 1.02. Delivery of Documents......................................... 6
Section 1.03. Review of Documentation....................................... 6
Section 1.04. Representations and Warranties of the Seller.................. 6
Section 1.05. Grant Clause.................................................. 8
Section 1.06. Assignment by Depositor....................................... 8
ARTICLE II MISCELLANEOUS PROVISIONS................................................... 9
Section 2.01. Binding Nature of Agreement; Assignment....................... 9
Section 2.02. Entire Agreement.............................................. 9
Section 2.03. Amendment..................................................... 9
Section 2.04. Governing Law................................................. 10
Section 2.05. Severability of Provisions.................................... 10
Section 2.06. Indulgences; No Waivers....................................... 10
Section 2.07. Headings Not to Affect Interpretation......................... 10
Section 2.08. Benefits of Agreement......................................... 10
Section 2.09. Counterparts.................................................. 10
SCHEDULE
SCHEDULE A Mortgage Loan Schedule
EXHIBITS
EXHIBIT A Transfer Agreement
This MORTGAGE LOAN SALE AND ASSIGNMENT AGREEMENT, dated as of February 1,
2003 (the "Agreement"), is executed by and between Xxxxxxx Xxxxx Mortgage
Capital Inc. (the "Seller") and Xxxxxxx Xxxxx Mortgage Investors, Inc. (the
"Depositor").
All capitalized terms not defined herein shall have the same meanings
assigned to such terms in that certain Pooling and Servicing Agreement (the
"Pooling Agreement"), dated as of February 1, 2003, among the Depositor, Xxxxx
Fargo Bank Minnesota, National Association, as trustee (the "Trustee") and HomEq
Servicing Corporation, as servicer (the "Servicer").
W I T N E S S E T H:
WHEREAS, pursuant to the following specified agreement (the "Transfer
Agreement"), the Seller has purchased or received certain mortgage loans
identified on the Mortgage Loan Schedule attached hereto as Schedule A (the
"Mortgage Loans"): Master Mortgage Loan Purchase and Interim Servicing
Agreement, dated as of October 1, 2002, by and between Xxxxxxx Xxxxx Mortgage
Capital Inc. and WMC Mortgage Corp. ("WMC") as supplemented by that certain
letter agreement dated as of March 11, 2003 among WMC, the Seller and the
Servicer.
WHEREAS, the Seller desires to sell, without recourse, all of its rights,
title and interest in the Mortgage Loans to the Depositor, to assign all of its
rights and interest under the Transfer Agreement, and to delegate all of its
obligations thereunder, to the Depositor; and
WHEREAS, the Seller and the Depositor acknowledge and agree that the
Depositor will assign all of its rights and delegate all of its obligations
hereunder to the Trustee, and that each reference herein to the Depositor is
intended, unless otherwise specified, to mean the Depositor or the Trustee, as
assignee, whichever is the owner of the Mortgage Loans from time to time.
NOW, THEREFORE, in consideration of the mutual agreements herein set
forth, and for other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the Seller and the Depositor agree as follows:
ARTICLE I
CONVEYANCE OF MORTGAGE LOANS
Section 1.01. Sale of Mortgage Loans. Concurrently with the execution and
delivery of this Agreement, the Seller does hereby transfer, assign, set over,
deposit with and otherwise convey to the Depositor, without recourse, subject to
Sections 1.03 and 1.04, all the right, title and interest of the Seller in and
to the Mortgage Loans identified on Schedule A hereto, having an aggregate
principal balance as of the Cut-off Date of $793,727,928.00. Such conveyance
includes, without limitation, the right to all distributions of principal and
interest received on or with respect to the Mortgage Loans on or after February
1, 2003 other than payments of principal and interest due on or before such
date, and all such payments due after such date but received prior to such date
and intended by the related Mortgagors to be applied after such date, together
with all of the Seller's right, title and interest in and to each related
account and all amounts from time to time credited to and the proceeds of such
account, any REO Property and the proceeds thereof, the Seller's rights under
any Insurance Policies related to the Mortgage Loans, and the Seller's security
interest in any collateral pledged to secure the Mortgage Loans, including the
Mortgaged Properties.
Concurrently with the execution and delivery of this Agreement, the Seller
hereby assigns to the Depositor all of its rights and interest under the
Transfer Agreement, other than any servicing rights retained pursuant to the
provisions of the Transfer Agreement, to the extent relating to the Mortgage
Loans. Concurrently with the execution hereof, the Depositor tenders the
purchase price of $793,727,928.00. The Depositor hereby accepts such assignment,
and shall be entitled to exercise all such rights of the Seller under the
Transfer Agreement, as if the Depositor had been a party to such agreement.
Section 1.02. Delivery of Documents. In connection with such transfer and
assignment of the Mortgage Loans hereunder, the Seller does hereby deliver, or
cause to be delivered, to the Depositor (or its designee) the documents or
instruments with respect to each Mortgage Loan (each a "Mortgage File") so
transferred and assigned, as specified in the Transfer Agreement.
(a) For Mortgage Loans (if any) that have been prepaid in full after the
Cut-off Date and prior to the Closing Date, the Seller, in lieu of delivering
the related Mortgage Files, herewith delivers to the Depositor an Officer's
Certificate which shall include a statement to the effect that all amounts
received in connection with such prepayment that are required to be deposited in
the account maintained by the Servicer for such purpose have been so deposited.
Section 1.03. Review of Documentation. The Depositor, by execution and
delivery hereof, acknowledges receipt of the Mortgage Files pertaining to the
Mortgage Loans listed on the Mortgage Loan Schedule, subject to review thereof
by the trustee, Xxxxx Fargo Bank Minnesota, National Association. (the
"Trustee") for the Mortgage Loans for the Depositor. The Trustee is required to
review, within 45 days following the Closing Date, each applicable Mortgage
File. If in the course of such review the Trustee identifies any Material
Defect, the Seller shall be obligated to cure such defect or to repurchase the
related Mortgage Loan from the Depositor (or, at the direction of and on behalf
of the Depositor, from the Trust Fund), or to substitute a Replacement Mortgage
Loan therefor, in each case to the same extent and in the same manner as the
Depositor is obligated to the Trustee and the Trust Fund under the Pooling
Agreement.
Section 1.04. Representations and Warranties of the Seller.
(a) The Seller hereby represents and warrants to the Depositor that as of
the date hereof that:
(i) The Seller is a Delaware corporation duly organized, validly
existing and in good standing under the laws governing its creation and
existence and has full corporate power and authority to own its property,
to carry on its business as presently conducted, and to enter into and
perform its obligations under this Agreement;
(ii) The execution and delivery by the Seller of this Agreement have
been duly authorized by all necessary corporate action on the part of the
Seller; neither the execution and delivery of this Agreement, nor the
consummation of the transactions herein contemplated, nor compliance with
the provisions hereof, will conflict with or result in a breach of, or
constitute a default under, any of the provisions of any law, governmental
rule, regulation, judgment, decree or order binding on the Seller or its
properties or the federal stock charter or bylaws of the Seller;
(iii) The execution, delivery and performance by the Seller of this
Agreement and the consummation of the transactions contemplated hereby do
not require the consent or approval of, the giving of notice to, the
registration with, or the taking of any other action in respect of, any
state, federal or other governmental authority or agency, except such as
has been obtained, given, effected or taken prior to the date hereof;
(iv) This Agreement has been duly executed and delivered by the
Seller and, assuming due authorization, execution and delivery by the
Depositor, constitutes a valid and binding obligation of the Seller
enforceable against it in accordance with its terms except as such
enforceability may be subject to (A) applicable bankruptcy and insolvency
laws and other similar laws affecting the enforcement of the rights of
creditors generally and (B) general principles of equity regardless of
whether such enforcement is considered in a proceeding in equity or at
law; and
(v) There are no actions, suits or proceedings pending or, to the
knowledge of the Seller, threatened or likely to be asserted against or
affecting the Seller, before or by any court, administrative agency,
arbitrator or governmental body (A) with respect to any of the
transactions contemplated by this Agreement or (B) with respect to any
other matter which in the judgment of the Seller will be determined
adversely to the Seller and will if determined adversely to the Seller
materially and adversely affect it or its
business, assets, operations or condition, financial or otherwise, or
adversely affect its ability to perform its obligations under this
Agreement.
(b) The representations and warranties of the Transferor with respect to
the Mortgage Loans in the Transfer Agreement were made as of the date of the
Transfer Agreement. To the extent that any fact, condition or event with respect
to a Mortgage Loan constitutes a breach of both (i) a representation or warranty
of the Transferor under the Transfer Agreement and (ii) a representation or
warranty of the Seller under this Agreement, the only right or remedy of the
Depositor shall be the right to enforce the obligations of the Transferor under
any applicable representation or warranty made by it. The Depositor acknowledges
and agrees that the representations and warranties of the Seller in this Section
1.04(b) are applicable only to facts, conditions or events that do not
constitute a breach of any representation or warranty made by the Transferor in
the Transfer Agreement. The Seller shall have no obligation or liability with
respect to any breach of a representation or warranty made by it with respect to
the Mortgage Loans if the fact, condition or event constituting such breach also
constitutes a breach of a representation or warranty made by the Transferor in
the Transfer Agreement, without regard to whether the Transferor fulfills its
contractual obligations in respect of such representation or warranty; provided,
however, that if the Transferor fulfills its obligations under the provisions of
the Transfer Agreement by substituting for the affected Mortgage Loan a mortgage
loan which is not a Replacement Mortgage Loan, the Seller shall, in exchange for
such substitute mortgage loan, provide the Depositor (a) with the applicable
Purchase Price for the affected Mortgage Loan or (b) within the two year period
following the Closing Date, with a Qualified Substitute Mortgage Loan for such
affected Mortgage Loan. Subject to the foregoing, the Seller represents and
warrants upon delivery of the Mortgage Loans to the Depositor hereunder, as to
each, that:
(i) The information set forth with respect to the Mortgage Loans on
the Mortgage Loan Schedule provides an accurate listing of the Mortgage
Loans, and the information with respect to each Mortgage Loan on the
Mortgage Loan Schedule is true and correct in all material respects at the
date or dates respecting which such information is given;
(ii) There is no Mortgage Loan underlying the security that was
originated on or after October 1, 2002, which is secured by property
located in the state of Georgia;
(iii) As of the Closing Date, no Mortgage Loan is in foreclosure;
(iv) As of the Closing Date, each Mortgage Loan is a "qualified
mortgage" within the meaning of Section 860G of the Code and Treas. Reg.
Section 1.860G-2; and
(v) As to the servicing of the Mortgage Loans, the representations
and warranties contained in Sections 7.02(iii), (iv), (ix), (xvii),
(xxiii) and (xxxiv) of the Transfer Agreement are incorporated herein by
reference as of the Closing Date.
It is understood and agreed that the representations and warranties set
forth in Section 1.04(b) herein shall survive delivery of the Mortgage Files and
the Assignment of Mortgage of each Mortgage Loan to the Depositor. Upon
discovery by either the Seller or the Depositor of a breach of any of the
foregoing representations and warranties that adversely and materially affects
the value of the related Mortgage Loan, and, that does not also constitute a
breach of a representation or warranty of the Transferor in the Transfer
Agreement, the party discovering such breach shall give prompt written notice to
the other party. Within 60 days of the discovery of any such breach, the Seller
shall either (a) cure such breach in all material respects, (b) repurchase such
Mortgage Loan or any property acquired in respect thereof from the Depositor at
the applicable Purchase Price or (c) within the two year period following the
Closing Date, substitute a Replacement Mortgage Loan for the affected Mortgage
Loan. The Seller indemnifies and holds the Trust Fund, the Trustee, the
Depositor, the Servicer, the NIMs Insurer and each Certificateholder harmless
against any and all taxes, claims, losses, penalties, fines, forfeitures,
reasonable legal fees and related costs, judgments, and any other costs, fees
and expenses that the Trust Fund, the Trustee, the Depositor, the Servicer, the
NIMs Insurer and any Certificateholder may sustain in connection with any
actions of the Seller relating to a repurchase of a Mortgage Loan other than in
compliance with the terms of this Section 2.03 of the Pooling Agreement and this
Agreement, to the extent that any such action causes (i) any federal or state
tax to be imposed on the Trust Fund or any REMIC provided for in the Pooling
Agreement, including without limitation, any
federal tax imposed on "prohibited transactions" under Section 860F(a)(1) of the
Code or on "contributions after the startup date" under Section 860(d)(1) of the
Code, or (ii) any REMIC created in the Pooling Agreement to fail to qualify as a
REMIC at any time that any Certificate is outstanding.
Section 1.05. Grant Clause. It is intended that the conveyance of the
Seller's right, title and interest in and to Mortgage Loans and other property
conveyed pursuant to this Agreement shall constitute, and shall be construed as,
a sale of such property and not a grant of a security interest to secure a loan.
However, if such conveyance is deemed to be in respect of a loan, it is intended
that: (1) the rights and obligations of the parties shall be established
pursuant to the terms of this Agreement; (2) the Seller hereby grants to the
Depositor a first priority security interest in all of the Seller's right, title
and interest in, to and under, whether now owned or hereafter acquired, such
Mortgage Loans and other property; and (3) this Agreement shall constitute a
security agreement under applicable law.
Section 1.06. Assignment by Depositor. The Depositor shall have the right,
upon notice to but without the consent of the Seller, to assign, in whole or in
part, its interest under this Agreement with respect to the Mortgage Loans to
the Trustee, and the Trustee then shall succeed to all rights of the Depositor
under this Agreement. All references to the Depositor in this Agreement shall be
deemed to include its assignee or designee, specifically including the Trustee.
ARTICLE II
MISCELLANEOUS PROVISIONS
Section 2.01. Binding Nature of Agreement; Assignment. This Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns.
Section 2.02. Entire Agreement. This Agreement contains the entire
agreement and understanding among the parties hereto with respect to the subject
matter hereof, and supersedes all prior and contemporaneous agreements,
understandings, inducements and conditions, express or implied, oral or written,
of any nature whatsoever with respect to the subject matter hereof. The express
terms hereof control and supersede any course of performance and/or usage of the
trade inconsistent with any of the terms hereof.
Section 2.03. Amendment. This Agreement may be amended from time to time
by the Seller and the Depositor, without notice to or the consent of any of the
Holders, (i) to cure any ambiguity, (ii) to cause the provisions herein to
conform to or be consistent with or in furtherance of the statements made with
respect to the Certificates, the Trust Fund, the Pooling Agreement or this
Agreement in any Offering Document; or to correct or supplement any provision
herein which may be inconsistent with any other provisions herein, (iii) to make
any other provisions with respect to matters or questions arising under this
Agreement or (iv) to add, delete, or amend any provisions to the extent
necessary or desirable to comply with any requirements imposed by the Code and
the REMIC Provisions. No such amendment effected pursuant to clause (iii) of the
preceding sentence shall adversely affect in any material respect the interests
of any Holder. Any such amendment shall be deemed not to adversely affect in any
material respect any Holder, if the Trustee receives written confirmation from
each Rating Agency that such amendment will not cause such Rating Agency to
reduce the then current rating assigned to the Certificates (and any Opinion of
Counsel requested by the Trustee in connection with any such amendment may rely
expressly on such confirmation as the basis therefor).
(a) This Agreement may also be amended from time to time by the Seller and
the Depositor with the consent of the Holders of not less than 66-2/3% of the
Class Certificate Principal Amount (or Percentage Interest) of each Class of
Certificates affected thereby for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Agreement or
of modifying in any manner the rights of the Holders; provided, however, that no
such amendment may (i) reduce in any manner the amount of, or delay the timing
of, payments received on Mortgage Loans which are required to be distributed on
any Certificate without the consent of the Holder of such Certificate or (ii)
reduce the aforesaid percentages of Class Principal Amount (or Percentage
Interest) of Certificates of each Class, the Holders of which are required to
consent to any such amendment without the consent of the Holders of 100% of the
Class Principal Amount (or Percentage Interest) of each Class of
Certificates affected thereby. For purposes of this paragraph, references to
"Holder" or "Holders" shall be deemed to include, in the case of any Class of
Book-Entry Certificates, the related Certificate Owners.
(b) It shall not be necessary for the consent of Holders under this
Section 2.03 to approve the particular form of any proposed amendment, but it
shall be sufficient if such consent shall approve the substance thereof. The
manner of obtaining such consents and of evidencing the authorization of the
execution thereof by Holders shall be subject to such reasonable regulations as
the Trustee may prescribe.
Section 2.04. Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS
AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
SUCH LAWS WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES APPLIED IN NEW YORK.
Section 2.05. Severability of Provisions. If any one or more of the
covenants, agreements, provisions or terms of this Agreement shall be for any
reason whatsoever held invalid, then such covenants, agreements, provisions or
terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement.
Section 2.06. Indulgences; No Waivers. Neither the failure nor any delay
on the part of a party to exercise any right, remedy, power or privilege under
this Agreement shall operate as a waiver thereof, nor shall any single or
partial exercise of any right, remedy, power or privilege preclude any other or
further exercise of the same or of any other right, remedy, power or privilege,
nor shall any waiver of any right, remedy, power or privilege with respect to
any occurrence be construed as a waiver of such right, remedy, power or
privilege with respect to any other occurrence. No waiver shall be effective
unless it is in writing and is signed by the party asserted to have granted such
waiver.
Section 2.07. Headings Not to Affect Interpretation. The headings
contained in this Agreement are for convenience of reference only, and they
shall not be used in the interpretation hereof.
Section 2.08. Benefits of Agreement. Nothing in this Agreement, express or
implied, shall give to any Person, other than the parties to this Agreement and
their successors hereunder, any benefit or any legal or equitable right, power,
remedy or claim under this Agreement.
Section 2.09. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original, and all of which
together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the Seller and the Depositor have caused their names
to be signed hereto by their respective duly authorized officers as of the date
first above written.
XXXXXXX XXXXX MORTGAGE CAPITAL INC.
By:
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Name: Xxxxxxx X. Xxxx, Xx.
Title: Vice President
XXXXXXX XXXXX MORTGAGE INVESTORS,
INC.
By:
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Name: Xxxxxxx Xxxxxx
Title: President
Xxxxxxx Xxxxx Mortgage Loan Sale and Assignment Agreement
SCHEDULE A
MORTGAGE LOAN SCHEDULE
INTENTIONALLY OMITTED
EXHIBIT A
TRANSFER AGREEMENT
INTENTIONALLY OMITTED
