EXECUTION COPY
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WACHOVIA BANK, NATIONAL ASSOCIATION,
SELLER
and
WACHOVIA MORTGAGE LOAN TRUST, LLC,
PURCHASER
MORTGAGE LOAN SALE AND ASSIGNMENT AGREEMENT
Dated as of September 1, 2005
Wachovia Mortgage Loan Trust, LLC
(Mortgage Loan Asset-Backed Certificates, Series 2005-WMC1)
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This MORTGAGE LOAN SALE AND ASSIGNMENT AGREEMENT, dated as of September 1,
2005 (the "Agreement"), is executed by and between Wachovia Bank, National
Association (the "Seller") and Wachovia Mortgage Loan Trust, LLC (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 September 1, 2005, among the Depositor, U.S.
Bank National Association, as trustee (the "Trustee") and HomEq Servicing
Corporation, as servicer (the "Servicer").
W I T N E S S E T H:
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WHEREAS, pursuant to the Mortgage Loan Purchase and Interim Servicing
Agreement, dated as of August 30, 2005, by and between the Seller and WMC
Mortgage Corp. ("WMC" or the "Transferor") (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");
WHEREAS, the Transfer Agreement is supplemented by that certain letter
agreement, dated as of September 29, 2005 among WMC, the Seller and the Servicer
(the "Bring Down Letter");
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 the Bring Down
Letter, 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 $715,020,746.47. 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 September 1, 2005, 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 and the Bring Down Letter, other than any servicing rights
retained pursuant to the provisions of the Transfer Agreement and the Bring Down
Letter, to the extent relating to the Mortgage Loans. Concurrently with the
execution hereof, the Depositor (i) tenders the purchase price of [INTENTIONALLY
OMITTED] and (ii) shall cause the Class R Certificate to be registered in the
name of and delivered to the Seller. The Depositor hereby accepts such
assignment, and shall be entitled to exercise all such rights of the Seller
under the Transfer Agreement and the Bring Down Letter, 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, 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 national banking association, validly
existing and in good standing under the laws of the United States of
America 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; none of the execution and delivery of this Agreement, the
consummation of the transactions herein contemplated or 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 contained in the Transfer Agreement were made as of the
date of the Transfer Agreement and brought forward to the Closing Date pursuant
to the Bring Down Letter. The representations and warranties of the Transferor
with respect to the Mortgage Loans contained in the Bring Down Letter were made
as of the Closing Date. 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 or Bring Down Letter and
(ii) a representation or warranty of the Seller under this Agreement, the sole
right or remedy of the Depositor with respect to a breach by the Seller of such
representation and warranty (other than a breach by the Seller of the
representations and warranties made pursuant to Sections 1.04(b)(vii) and
1.04(b)(viii)) shall be the right to enforce the obligations of the Transferor
under any applicable
representation or warranty made by it. The representations made by the Seller
pursuant to Sections 1.04(b)(vii) and 1.04(b)(viii) shall be direct obligations
of the Seller. The Depositor acknowledges and agrees that the representations
and warranties of the Seller in this Section 1.04(b) (other than the
representations and warranties made pursuant to Sections 1.04(b)(vii) and
1.04(b)(viii)) 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 or Bring Down Letter. 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 or Bring Down Letter,
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 and the Bring Down Letter 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 as of September 29, 2005:
(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) As of the Closing Date, no Mortgage Loan is in
foreclosure;
(iii) As of the Closing Date, each Mortgage Loan is a "qualified
mortgage" within the meaning of Section 860G of the Code (as determined
without regard to Treas. Reg. Section 1.860G-2(a)(3) or any similar rule
that treats a defective obligation as a qualified mortgage for a temporary
period);
(iv) The representations and warranties contained in
Subsections 2.01(b)(vi), (vii), (x), (xvi), the second sentence of
(xviii), (xxi), (xxiv), the last clause regarding servicing of (xxvi),
(xxix), (xxx), (xxxi), (xxxii), (xxxviii), (xl), (xlii) (xlv), and (lxiv)
of the Transfer Agreement are incorporated herein by reference and hereby
made as of the Closing Date;
(v) As of the Closing Date, no Mortgage Loan provides for
interest other than at either (i) a single fixed rate in effect throughout
the term of the Mortgage Loan or (ii) a "variable rate" (within the
meaning of Treas. Reg. Section 1.860G-1(a)(3)) in effect throughout the
term of the Mortgage Loan;
(vi) As of the Closing Date, the Seller would not, based on the
delinquency status of the Mortgage Loans, institute foreclosure
proceedings with respect to any of the Mortgage Loans prior to the next
scheduled payment for such Mortgage Loan;
(vii) None of the Mortgage Loans are "high cost" as defined by
applicable predatory and abusive lending laws; No Mortgage Loan is a High
Cost Loan or Covered Loan, as applicable (as such terms are defined in the
current Standard & Poor's LEVELS(R) Glossary which is now Version 5.6
Revised, Appendix E); and
(viii) Each Mortgage Loan at the time it was made complied with
all applicable local, state and federal lending laws, including, but not
limited to, all applicable predatory and abusive lending laws.
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 or Bring Down Letter, 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 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 or correct any mistake, (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 modify, alter, amend, add to
or rescind any of the terms or 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 Voting Rights 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 the
Voting Rights 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 Voting Rights 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.
[SIGNATURE PAGE IMMEDIATELY FOLLOWS]
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.
WACHOVIA BANK, NATIONAL
ASSOCIATION
By:
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Name:
Title:
WACHOVIA MORTGAGE LOAN TRUST, LLC
By:
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Name:
Title:
SCHEDULE A
MORTGAGE LOAN SCHEDULE
