MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.
Depositor
BARCLAYS
CAPITAL REAL ESTATE INC.
d/b/a
HOMEQ SERVICING
Servicer
XXXXX
FARGO BANK, N.A.
Master
Servicer and Trust Administrator
and
U.S.
BANK
NATIONAL ASSOCIATION
Trustee
Dated
as
of Xxxxxxxx 0, 0000
XXXXX
Xxxxx Backed Securities Trust 2006-NC3
Mortgage
Pass-Through Certificates
Series
2006-NC3
TABLE
OF
CONTENTS
|
ARTICLE
I
|
|
|
DEFINITIONS
|
|
|
SECTION
1.01.
|
Defined
Terms.
|
|
SECTION
1.02.
|
Allocation
of Certain Interest Shortfalls.
|
|
SECTION
1.03.
|
Rights
of the NIMS Insurer.
|
|
ARTICLE
II
|
|
|
CONVEYANCE
OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF CERTIFICATES
|
|
|
SECTION
2.01.
|
Conveyance
of the Mortgage Loans.
|
|
SECTION
2.02.
|
Acceptance
of REMIC I by Trustee.
|
|
SECTION
2.03.
|
Repurchase
or Substitution of Mortgage Loans by the Originator or the
Seller.
|
|
SECTION
2.04.
|
Reserved.
|
|
SECTION
2.05.
|
Representations,
Warranties and Covenants of the Servicer and the Master
Servicer.
|
|
SECTION
2.06.
|
Conveyance
of REMIC Regular Interests and Acceptance of REMIC I, REMIC II, REMIC
III, REMIC IV, REMIC V and REMIC VI by the Trustee; Issuance
of
Certificates.
|
|
SECTION
2.07.
|
Issuance
of Class R Certificates and Class R-X Certificates.
|
|
SECTION
2.08.
|
Authorization
to Enter into Interest Rate Cap Agreements and Interest Rate
Swap
Agreement.
|
|
ARTICLE
III
|
|
|
ADMINISTRATION
AND SERVICING OF THE MORTGAGE LOANS
|
|
|
SECTION
3.01.
|
Servicer
to Act as Servicer.
|
|
SECTION
3.02.
|
Sub-Servicing
Agreements Between Servicer and Sub-Servicers.
|
|
SECTION
3.03.
|
Successor
Sub-Servicers.
|
|
SECTION
3.04.
|
Liability
of the Servicer.
|
|
SECTION
3.05.
|
No
Contractual Relationship Between Sub-Servicers and the Trustee,
the Master
Servicer, the Trust Administrator, the NIMS Insurer or
Certificateholders.
|
|
SECTION
3.06.
|
Assumption
or Termination of Sub-Servicing Agreements by Master
Servicer.
|
|
SECTION
3.07.
|
Collection
of Certain Mortgage Loan Payments.
|
|
SECTION
3.08.
|
Sub-Servicing
Accounts.
|
|
SECTION
3.09.
|
Collection
of Taxes, Assessments and Similar Items; Servicing
Accounts.
|
|
SECTION
3.10.
|
Collection
Account.
|
|
SECTION
3.11.
|
Withdrawals
from the Collection Account.
|
|
SECTION
3.12.
|
Investment
of Funds in the Collection Account.
|
|
SECTION
3.13.
|
[Reserved].
|
|
SECTION
3.14.
|
Maintenance
of Hazard Insurance and Errors and Omissions and Fidelity
Coverage.
|
|
SECTION
3.15.
|
Enforcement
of Due-On-Sale Clauses; Assumption Agreements.
|
|
SECTION
3.16.
|
Realization
Upon Defaulted Mortgage Loans.
|
|
SECTION
3.17.
|
Trustee
to Cooperate; Release of Mortgage Files.
|
|
SECTION
3.18.
|
Servicing
Compensation.
|
|
SECTION
3.19.
|
Reports
to the Trust Administrator; Collection Account
Statements.
|
|
SECTION
3.20.
|
Statement
as to Compliance.
|
|
SECTION
3.21.
|
Assessments
of Compliance and Attestation Reports.
|
|
SECTION
3.22.
|
Access
to Certain Documentation.
|
|
SECTION
3.23.
|
Title,
Management and Disposition of REO Property.
|
|
SECTION
3.24.
|
Obligations
of the Servicer in Respect of Prepayment Interest
Shortfalls.
|
|
SECTION
3.25.
|
Obligations
of the Servicer in Respect of Mortgage Rates and Monthly
Payments.
|
|
SECTION
3.26.
|
Advance
Facility
|
|
SECTION
3.27.
|
Solicitations.
|
|
ARTICLE
IIIA
|
|
|
ADMINISTRATION
AND SERVICING OF THE MORTGAGE LOANS
|
|
|
SECTION
3A.01.
|
Master
Servicer to Act as Master Servicer
|
|
SECTION
3A.02.
|
[Reserved].
|
|
SECTION
3A.03.
|
Monitoring
of Servicer.
|
|
SECTION
3A.04.
|
Fidelity
Bond
|
|
SECTION
3A.05.
|
Power
to Act; Procedures.
|
|
SECTION
3A.06.
|
Due
on Sale Clauses; Assumption Agreements.
|
|
SECTION
3A.07.
|
[Reserved].
|
|
SECTION
3A.08.
|
Documents,
Records and Funds in Possession of Master Servicer to be
Held for
Trustee.
|
|
SECTION
3A.09.
|
Compensation
for the Master Servicer.
|
|
SECTION
3A.10.
|
Obligations
of the Master Servicer in Respect of Prepayment Interest
Shortfalls.
|
|
SECTION
3A.11.
|
Distribution
Account.
|
|
SECTION
3A.12.
|
Permitted
Withdrawals and Transfers from the Distribution
Account.
|
|
SECTION
3A.13.
|
Late
Remittance.
|
|
ARTICLE
IV
|
|
|
PAYMENTS
TO CERTIFICATEHOLDERS
|
|
|
SECTION
4.01.
|
Distributions.
|
|
SECTION
4.02.
|
Statements
to Certificateholders.
|
|
SECTION
4.03.
|
Remittance
Reports; Advances.
|
|
SECTION
4.04.
|
Allocation
of Realized Losses.
|
|
SECTION
4.05.
|
Compliance
with Withholding Requirements.
|
|
SECTION
4.06.
|
Exchange
Commission Filings; Additional Information.
|
|
SECTION
4.07.
|
Net
WAC Rate Carryover Reserve Account.
|
|
SECTION
4.08.
|
Swap
Account.
|
|
SECTION
4.09.
|
Tax
Treatment of Swap Payments and Swap Termination
Payments.
|
|
SECTION
4.10.
|
Cap
Account.
|
|
SECTION
4.11.
|
Collateral
Accounts.
|
|
SECTION
4.12.
|
Rights
and Obligations Under the Interest Rate Cap Agreements and
the Interest
Rate Swap Agreement.
|
|
ARTICLE
V
|
|
|
THE
CERTIFICATES
|
|
|
SECTION
5.01.
|
The
Certificates.
|
|
SECTION
5.02.
|
Registration
of Transfer and Exchange of Certificates.
|
|
SECTION
5.03.
|
Mutilated,
Destroyed, Lost or Stolen Certificates.
|
|
SECTION
5.04.
|
Persons
Deemed Owners.
|
|
SECTION
5.05.
|
Certain
Available Information.
|
|
ARTICLE
VI
|
|
|
THE
DEPOSITOR, THE SERVICER AND THE MASTER SERVICER
|
|
|
SECTION
6.01.
|
Liability
of the Depositor, the Servicer and the Master Servicer.
|
|
SECTION
6.02.
|
Merger
or Consolidation of the Depositor, the Servicer or the Master
Servicer.
|
|
SECTION
6.03.
|
Limitation
on Liability of the Depositor, the Servicer, the Master Servicer
and
Others.
|
|
SECTION
6.04.
|
Limitation
on Resignation of the Servicer; Assignment of Master
Servicing.
|
|
SECTION
6.05.
|
Successor
Master Servicer.
|
|
SECTION
6.06.
|
Rights
of the Depositor in Respect of the Servicer.
|
|
SECTION
6.07.
|
[Reserved].
|
|
SECTION
6.08.
|
Duties
of the Credit Risk Manager.
|
|
SECTION
6.09.
|
Limitation
Upon Liability of the Credit Risk Manager.
|
|
SECTION
6.10.
|
Removal
of the Credit Risk Manager.
|
|
ARTICLE
VII
|
|
|
DEFAULT
|
|
|
SECTION
7.01.
|
Servicer
Events of Default and Master Servicer Events of
Termination.
|
|
SECTION
7.02.
|
Master
Servicer or Trustee to Act; Appointment of Successor
Servicer.
|
|
SECTION
7.03.
|
Trustee
to Act; Appointment of Successor Master Servicer.
|
|
SECTION
7.04.
|
Notification
to Certificateholders.
|
|
SECTION
7.05.
|
Waiver
of Servicer Events of Default and Master Servicer Events
of
Termination.
|
|
SECTION
7.06.
|
Survivability
of Servicer and Master Servicer Liabilities.
|
|
ARTICLE
VIII
|
|
|
CONCERNING
THE TRUSTEE AND THE TRUST ADMINISTRATOR
|
|
|
SECTION
8.01.
|
Duties
of Trustee and Trust Administrator.
|
|
SECTION
8.02.
|
Certain
Matters Affecting the Trustee and the Trust
Administrator.
|
|
SECTION
8.03.
|
Neither
Trustee nor Trust Administrator Liable for Certificates or
Mortgage
Loans.
|
|
SECTION
8.04.
|
Trustee
and Trust Administrator May Own Certificates.
|
|
SECTION
8.05.
|
Trust
Administrator’s and Trustee’s Fees and Expenses.
|
|
SECTION
8.06.
|
Eligibility
Requirements for Trustee and Trust Administrator.
|
|
SECTION
8.07.
|
Resignation
and Removal of the Trustee or Trust Administrator.
|
|
SECTION
8.08.
|
Successor
Trustee or Trust Administrator.
|
|
SECTION
8.09.
|
Merger
or Consolidation of Trustee or Trust Administrator.
|
|
SECTION
8.10.
|
Appointment
of Co-Trustee or Separate Trustee.
|
|
SECTION
8.11.
|
Appointment
of Office or Agency; Appointment of Custodian.
|
|
SECTION
8.12.
|
Representations
and Warranties.
|
|
ARTICLE
IX
|
|
|
TERMINATION
|
|
|
SECTION
9.01.
|
Termination
Upon Repurchase or Liquidation of All Mortgage Loans.
|
|
SECTION
9.02.
|
Additional
Termination Requirements.
|
|
ARTICLE
X
|
|
|
REMIC
PROVISIONS
|
|
|
SECTION
10.01.
|
REMIC
Administration.
|
|
SECTION
10.02.
|
Prohibited
Transactions and Activities.
|
|
SECTION
10.03.
|
Servicer,
Master Servicer and Trustee Indemnification.
|
|
ARTICLE
XI
|
|
|
MISCELLANEOUS
PROVISIONS
|
|
|
SECTION
11.01.
|
Amendment.
|
|
SECTION
11.02.
|
Recordation
of Agreement; Counterparts.
|
|
SECTION
11.03.
|
Limitation
on Rights of Certificateholders.
|
|
SECTION
11.04.
|
Governing
Law.
|
|
SECTION
11.05.
|
Notices.
|
|
SECTION
11.06.
|
Severability
of Provisions.
|
|
SECTION
11.07.
|
Notice
to Rating Agencies and the NIMS Insurer.
|
|
SECTION
11.08.
|
Article
and Section References.
|
|
SECTION
11.09.
|
Grant
of Security Interest.
|
|
SECTION
11.10.
|
Third
Party Rights.
|
|
SECTION
11.11.
|
Intention
of the Parties and Interpretation.
|
|
Exhibits
|
|
|
Exhibit
A-A-1
|
Form
of Class A-1 Certificate
|
|
Exhibit
A-A-2
|
Form
of Class A-2 Certificate
|
|
Exhibit
A-A-3
|
Form
of Class A-3 Certificate
|
|
Exhibit
A-A-4
|
Form
of Class A-4 Certificate
|
|
Exhibit
A-A-5
|
Form
of Class A-5 Certificate
|
|
Exhibit
A-M-1
|
Form
of Class M-1 Certificate
|
|
Exhibit
A-M-2
|
Form
of Class M-2 Certificate
|
|
Exhibit
A-M-3
|
Form
of Class M-3 Certificate
|
|
Exhibit
A-M-4
|
Form
of Class M-4 Certificate
|
|
Exhibit
A-M-5
|
Form
of Class M-5 Certificate
|
|
Exhibit
A-M-6
|
Form
of Class M-6 Certificate
|
|
Exhibit
A-M-7
|
Form
of Class M-7 Certificate
|
|
Exhibit
A-M-8
|
Form
of Class M-8 Certificate
|
|
Exhibit
A-M-9
|
Form
of Class M-9 Certificate
|
|
Exhibit
A-M-10
|
Form
of Class M-10 Certificate
|
|
Exhibit
A-M-11
|
Form
of Class M-11 Certificate
|
|
Exhibit
A-15
|
[Reserved]
|
|
Exhibit
A-CE
|
Form
of Class CE Certificate
|
|
Exhibit
A-P
|
Form
of Class P Certificate
|
|
Exhibit
A-R
|
Form
of Class R Certificate
|
|
Exhibit
A-RX
|
Form
of Class R-X Certificate
|
|
Exhibit
B
|
[Reserved]
|
|
Exhibit
C-1
|
Form
of Initial Certification
|
|
Exhibit
C-2
|
Form
of Final Certification
|
|
Exhibit
C-3
|
Form
of Receipt of Mortgage Notes
|
|
Exhibit
D
|
Form
of Assignment Agreement
|
|
Exhibit
E
|
Request
for Release
|
|
Exhibit
F-1
|
Form
of Transferor Representation Letter and Form of Transferee
Representation
Letter in Connection with Transfer of the Private Certificates
Pursuant to
Rule 144A Under the 1933 Act
|
|
Exhibit
F-2
|
Form
of Transfer Affidavit and Agreement and Form of Transferor
Affidavit in
Connection with Transfer of Residual Certificates
|
|
Exhibit
G
|
Form
of Certification with respect to ERISA and the Code
|
|
Exhibit
H
|
[Reserved]
|
|
Exhibit
I
|
Form
of Lost Note Affidavit
|
|
Exhibit
J-1
|
Form
of Certification to Be Provided by the Master Servicer with
Form
10-K
|
|
Exhibit
J-2
|
Form
of Certification to Be Provided by the Servicer to the Master
Servicer
|
|
Exhibit
K
|
Forms
of Interest Rate Cap Agreements
|
|
Exhibit
L
|
Annual
Statement of Compliance pursuant to Section 3.20
|
|
Exhibit
M
|
Form
of Interest Rate Swap Agreement
|
|
Exhibit
N
|
Form
of Swap Administration Agreement
|
|
Exhibit
O
|
Servicing
Criteria to Be Addressed in Assessment of Compliance
|
|
Exhibit
P
|
Form
10-D, Form 8-K and Form 10-K Reporting Responsibility
|
|
Exhibit
Q
|
Additional
Disclosure Notification
|
|
Exhibit
R-1
|
Form
of Delinquency Report
|
|
Exhibit
R-2
|
Form
of Monthly Remittance Report
|
|
Exhibit
R-3
|
Form
of Realized Loss Report
|
|
Exhibit
S-1
|
Form
of Watchlist Report
|
|
Exhibit
S-2
|
Form
of Loss Severity Report
|
|
Exhibit
S-3
|
Form
of Prepayment Premiums Report
|
|
Exhibit
S-4
|
Form
of Analytics Report
|
|
Schedule
1
|
Mortgage
Loan Schedule
|
|
Schedule
2
|
Prepayment
Charge Schedule
|
This
Pooling and Servicing Agreement, is dated and effective as of December
1, 2006
among MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC. as Depositor,
BARCLAYS
CAPITAL REAL ESTATE INC. d/b/a HOMEQ SERVICING as Servicer, XXXXX FARGO
BANK,
N.A. as Master Servicer and Trust Administrator and U.S. BANK NATIONAL
ASSOCIATION as Trustee.
PRELIMINARY
STATEMENT:
The
Depositor intends to sell pass-through certificates to be issued hereunder
in
multiple classes, which in the aggregate will evidence the entire beneficial
ownership interest in each REMIC (as defined herein) created hereunder.
The
Trust Fund will consist of a segregated pool of assets comprised of
the Mortgage
Loans and certain other related assets subject to this Agreement.
REMIC
I
As
provided herein, the Trustee will elect to treat the segregated pool
of assets
consisting of the Mortgage Loans and certain other related assets (other
than
the Net WAC Rate Carryover Reserve Account, the Swap Account, the Supplemental
Interest Trust, the Interest Rate Swap Agreement, the Interest Rate
Cap
Agreements, the Cap Account, any Originator Prepayment Charge Payment
Amounts
and any Servicer Prepayment Charge Payment Amounts) subject to this
Agreement as
a REMIC for federal income tax purposes, and such segregated pool of
assets will
be designated as “REMIC I.” The Class R-I Interest will be the sole class of
“residual interests” in REMIC I for purposes of the REMIC Provisions (as defined
herein). The following table irrevocably sets forth the designation,
the REMIC I
Remittance Rate, the initial Uncertificated Balance and, for purposes
of
satisfying Treasury Regulation Section 1.860G-1(a)(4)(iii), the “latest possible
maturity date” for each of the REMIC I Regular Interests (as defined herein).
None of the REMIC I Regular Interests will be certificated.
|
Designation
|
REMIC
I
Remittance
Rate
|
Initial
Uncertificated
Balance
|
Latest
Possible
Maturity
Date(1)
|
|||||
|
I
|
Variable(2)
|
$
|
88.31
|
September
25, 2036
|
||||
|
I-1-A
|
Variable(2)
|
$
|
1,846,363.64
|
September
25, 2036
|
||||
|
I-1-B
|
Variable(2)
|
$
|
1,846,363.64
|
September
25, 2036
|
||||
|
I-2-A
|
Variable(2)
|
$
|
2,280,134.51
|
September
25, 2036
|
||||
|
I-2-B
|
Variable(2)
|
$
|
2,280,134.51
|
September
25, 2036
|
||||
|
I-3-A
|
Variable(2)
|
$
|
2,711,948.52
|
September
25, 2036
|
||||
|
I-3-B
|
Variable(2)
|
$
|
2,711,948.52
|
September
25, 2036
|
||||
|
I-4-A
|
Variable(2)
|
$
|
3,135,282.80
|
September
25, 2036
|
||||
|
I-4-B
|
Variable(2)
|
$
|
3,135,282.80
|
September
25, 2036
|
||||
|
I-5-A
|
Variable(2)
|
$
|
3,548,702.31
|
September
25, 2036
|
||||
|
I-5-B
|
Variable(2)
|
$
|
3,548,702.31
|
September
25, 2036
|
||||
|
I-6-A
|
Variable(2)
|
$
|
3,945,162.36
|
September
25, 2036
|
||||
|
I-6-B
|
Variable(2)
|
$
|
3,945,162.36
|
September
25, 2036
|
||||
|
I-7-A
|
Variable(2)
|
$
|
4,322,836.55
|
September
25, 2036
|
||||
|
I-7-B
|
Variable(2)
|
$
|
4,322,836.55
|
September
25, 2036
|
||||
|
I-8-A
|
Variable(2)
|
$
|
4,674,288.79
|
September
25, 2036
|
||||
|
I-8-B
|
Variable(2)
|
$
|
4,674,288.79
|
September
25, 2036
|
||||
|
I-9-A
|
Variable(2)
|
$
|
4,931,681.25
|
September
25, 2036
|
||||
|
I-9-B
|
Variable(2)
|
$
|
4,931,681.25
|
September
25, 2036
|
||||
|
I-10-A
|
Variable(2)
|
$
|
4,703,511.25
|
September
25, 2036
|
||||
|
I-10-B
|
Variable(2)
|
$
|
4,703,511.25
|
September
25, 2036
|
||||
|
I-11-A
|
Variable(2)
|
$
|
4,485,777.85
|
September
25, 2036
|
||||
|
I-11-B
|
Variable(2)
|
$
|
4,485,777.85
|
September
25, 2036
|
||||
|
I-12-A
|
Variable(2)
|
$
|
4,278,350.57
|
September
25, 2036
|
||||
|
I-12-B
|
Variable(2)
|
$
|
4,278,350.57
|
September
25, 2036
|
||||
|
I-13-A
|
Variable(2)
|
$
|
4,080,577.15
|
September
25, 2036
|
||||
|
I-13-B
|
Variable(2)
|
$
|
4,080,577.15
|
September
25, 2036
|
||||
|
I-14-A
|
Variable(2)
|
$
|
3,892,196.66
|
September
25, 2036
|
||||
|
I-14-B
|
Variable(2)
|
$
|
3,892,196.66
|
September
25, 2036
|
||||
|
I-15-A
|
Variable(2)
|
$
|
3,712,426.35
|
September
25, 2036
|
||||
|
I-15-B
|
Variable(2)
|
$
|
3,712,426.35
|
September
25, 2036
|
||||
|
I-16-A
|
Variable(2)
|
$
|
3,541,266.24
|
September
25, 2036
|
||||
|
I-16-B
|
Variable(2)
|
$
|
3,541,266.24
|
September
25, 2036
|
||||
|
I-17-A
|
Variable(2)
|
$
|
3,378,064.03
|
September
25, 2036
|
||||
|
I-17-B
|
Variable(2)
|
$
|
3,378,064.03
|
September
25, 2036
|
||||
|
I-18-A
|
Variable(2)
|
$
|
3,222,297.89
|
September
25, 2036
|
||||
|
I-18-B
|
Variable(2)
|
$
|
3,222,297.89
|
September
25, 2036
|
||||
|
I-19-A
|
Variable(2)
|
$
|
3,165,548.91
|
September
25, 2036
|
||||
|
I-19-B
|
Variable(2)
|
$
|
3,165,548.91
|
September
25, 2036
|
||||
|
I-20-A
|
Variable(2)
|
$
|
5,200,032.13
|
September
25, 2036
|
||||
|
I-20-B
|
Variable(2)
|
$
|
5,200,032.13
|
September
25, 2036
|
||||
|
I-21-A
|
Variable(2)
|
$
|
4,705,729.03
|
September
25, 2036
|
||||
|
I-21-B
|
Variable(2)
|
$
|
4,705,729.03
|
September
25, 2036
|
||||
|
I-22-A
|
Variable(2)
|
$
|
4,259,042.88
|
September
25, 2036
|
||||
|
I-22-B
|
Variable(2)
|
$
|
4,259,042.88
|
September
25, 2036
|
||||
|
I-23-A
|
Variable(2)
|
$
|
3,862,191.45
|
September
25, 2036
|
||||
|
I-23-B
|
Variable(2)
|
$
|
3,862,191.45
|
September
25, 2036
|
||||
|
I-24-A
|
Variable(2)
|
$
|
3,464,165.91
|
September
25, 2036
|
||||
|
I-24-B
|
Variable(2)
|
$
|
3,464,165.91
|
September
25, 2036
|
||||
|
I-25-A
|
Variable(2)
|
$
|
2,157,765.47
|
September
25, 2036
|
||||
|
I-25-B
|
Variable(2)
|
$
|
2,157,765.47
|
September
25, 2036
|
||||
|
I-26-A
|
Variable(2)
|
$
|
2,044,919.81
|
September
25, 2036
|
||||
|
I-26-B
|
Variable(2)
|
$
|
2,044,919.81
|
September
25, 2036
|
||||
|
I-27-A
|
Variable(2)
|
$
|
1,937,944.74
|
September
25, 2036
|
||||
|
I-27-B
|
Variable(2)
|
$
|
1,937,944.74
|
September
25, 2036
|
||||
|
I-28-A
|
Variable(2)
|
$
|
1,835,927.05
|
September
25, 2036
|
||||
|
I-28-B
|
Variable(2)
|
$
|
1,835,927.05
|
September
25, 2036
|
||||
|
I-29-A
|
Variable(2)
|
$
|
1,740,562.69
|
September
25, 2036
|
||||
|
I-29-B
|
Variable(2)
|
$
|
1,740,562.69
|
September
25, 2036
|
||||
|
I-30-A
|
Variable(2)
|
$
|
1,650,155.71
|
September
25, 2036
|
||||
|
I-30-B
|
Variable(2)
|
$
|
1,650,155.71
|
September
25, 2036
|
||||
|
I-31-A
|
Variable(2)
|
$
|
1,658,244.07
|
September
25, 2036
|
||||
|
I-31-B
|
Variable(2)
|
$
|
1,658,244.07
|
September
25, 2036
|
||||
|
I-32-A
|
Variable(2)
|
$
|
1,796,398.46
|
September
25, 2036
|
||||
|
I-32-B
|
Variable(2)
|
$
|
1,796,398.46
|
September
25, 2036
|
||||
|
I-33-A
|
Variable(2)
|
$
|
1,669,985.23
|
September
25, 2036
|
||||
|
I-33-B
|
Variable(2)
|
$
|
1,669,985.23
|
September
25, 2036
|
||||
|
I-34-A
|
Variable(2)
|
$
|
1,552,964.94
|
September
25, 2036
|
||||
|
I-34-B
|
Variable(2)
|
$
|
1,552,964.94
|
September
25, 2036
|
||||
|
I-35-A
|
Variable(2)
|
$
|
1,446,642.16
|
September
25, 2036
|
||||
|
I-35-B
|
Variable(2)
|
$
|
1,446,642.16
|
September
25, 2036
|
||||
|
I-36-A
|
Variable(2)
|
$
|
1,306,139.53
|
September
25, 2036
|
||||
|
I-36-B
|
Variable(2)
|
$
|
1,306,139.53
|
September
25, 2036
|
||||
|
I-37-A
|
Variable(2)
|
$
|
1,117,106.75
|
September
25, 2036
|
||||
|
I-37-B
|
Variable(2)
|
$
|
1,117,106.75
|
September
25, 2036
|
||||
|
I-38-A
|
Variable(2)
|
$
|
1,058,270.46
|
September
25, 2036
|
||||
|
I-38-B
|
Variable(2)
|
$
|
1,058,270.46
|
September
25, 2036
|
||||
|
I-39-A
|
Variable(2)
|
$
|
1,002,565.15
|
September
25, 2036
|
||||
|
I-39-B
|
Variable(2)
|
$
|
1,002,565.15
|
September
25, 2036
|
||||
|
I-40-A
|
Variable(2)
|
$
|
949,599.45
|
September
25, 2036
|
||||
|
I-40-B
|
Variable(2)
|
$
|
949,599.45
|
September
25, 2036
|
||||
|
I-41-A
|
Variable(2)
|
$
|
899,764.72
|
September
25, 2036
|
||||
|
I-41-B
|
Variable(2)
|
$
|
899,764.72
|
September
25, 2036
|
||||
|
I-42-A
|
Variable(2)
|
$
|
852,930.51
|
September
25, 2036
|
||||
|
I-42-B
|
Variable(2)
|
$
|
852,930.51
|
September
25, 2036
|
||||
|
I-43-A
|
Variable(2)
|
$
|
808,574.99
|
September
25, 2036
|
||||
|
I-43-B
|
Variable(2)
|
$
|
808,574.99
|
September
25, 2036
|
||||
|
I-44-A
|
Variable(2)
|
$
|
766,567.71
|
September
25, 2036
|
||||
|
I-44-B
|
Variable(2)
|
$
|
766,567.71
|
September
25, 2036
|
||||
|
I-45-A
|
Variable(2)
|
$
|
726,908.66
|
September
25, 2036
|
||||
|
I-45-B
|
Variable(2)
|
$
|
726,908.66
|
September
25, 2036
|
||||
|
I-46-A
|
Variable(2)
|
$
|
689,336.92
|
September
25, 2036
|
||||
|
I-46-B
|
Variable(2)
|
$
|
689,336.92
|
September
25, 2036
|
||||
|
I-47-A
|
Variable(2)
|
$
|
653,852.51
|
September
25, 2036
|
||||
|
I-47-B
|
Variable(2)
|
$
|
653,852.51
|
September
25, 2036
|
||||
|
I-48-A
|
Variable(2)
|
$
|
620,324.96
|
September
25, 2036
|
||||
|
I-48-B
|
Variable(2)
|
$
|
620,324.96
|
September
25, 2036
|
||||
|
I-49-A
|
Variable(2)
|
$
|
588,493.35
|
September
25, 2036
|
||||
|
I-49-B
|
Variable(2)
|
$
|
588,493.35
|
September
25, 2036
|
||||
|
I-50-A
|
Variable(2)
|
$
|
558,618.61
|
September
25, 2036
|
||||
|
I-50-B
|
Variable(2)
|
$
|
558,618.61
|
September
25, 2036
|
||||
|
I-51-A
|
Variable(2)
|
$
|
530,178.89
|
September
25, 2036
|
||||
|
I-51-B
|
Variable(2)
|
$
|
530,178.89
|
September
25, 2036
|
||||
|
I-52-A
|
Variable(2)
|
$
|
503,304.67
|
September
25, 2036
|
||||
|
I-52-B
|
Variable(2)
|
$
|
503,304.67
|
September
25, 2036
|
||||
|
I-53-A
|
Variable(2)
|
$
|
477,735.01
|
September
25, 2036
|
||||
|
I-53-B
|
Variable(2)
|
$
|
477,735.01
|
September
25, 2036
|
||||
|
I-54-A
|
Variable(2)
|
$
|
453,861.31
|
September
25, 2036
|
||||
|
I-54-B
|
Variable(2)
|
$
|
453,861.31
|
September
25, 2036
|
||||
|
I-55-A
|
Variable(2)
|
$
|
430,900.81
|
September
25, 2036
|
||||
|
I-55-B
|
Variable(2)
|
$
|
430,900.81
|
September
25, 2036
|
||||
|
I-56-A
|
Variable(2)
|
$
|
409,375.33
|
September
25, 2036
|
||||
|
I-56-B
|
Variable(2)
|
$
|
409,375.33
|
September
25, 2036
|
||||
|
I-57-A
|
Variable(2)
|
$
|
389,023.98
|
September
25, 2036
|
||||
|
I-57-B
|
Variable(2)
|
$
|
389,023.98
|
September
25, 2036
|
||||
|
I-58-A
|
Variable(2)
|
$
|
369,846.74
|
September
25, 2036
|
||||
|
I-58-B
|
Variable(2)
|
$
|
369,846.74
|
September
25, 2036
|
||||
|
I-59-A
|
Variable(2)
|
$
|
351,582.70
|
September
25, 2036
|
||||
|
I-59-B
|
Variable(2)
|
$
|
351,582.70
|
September
25, 2036
|
||||
|
I-60-A
|
Variable(2)
|
$
|
7,237,515.87
|
September
25, 2036
|
||||
|
I-60-B
|
Variable(2)
|
$
|
7,237,515.87
|
September
25, 2036
|
||||
|
II
|
Variable(2)
|
$
|
250.14
|
September
25, 2036
|
||||
|
II-1-A
|
Variable(2)
|
$
|
5,230,136.36
|
September
25, 2036
|
||||
|
II-1-B
|
Variable(2)
|
$
|
5,230,136.36
|
September
25, 2036
|
||||
|
II-2-A
|
Variable(2)
|
$
|
6,458,865.49
|
September
25, 2036
|
||||
|
II-2-B
|
Variable(2)
|
$
|
6,458,865.49
|
September
25, 2036
|
||||
|
II-3-A
|
Variable(2)
|
$
|
7,682,051.48
|
September
25, 2036
|
||||
|
II-3-B
|
Variable(2)
|
$
|
7,682,051.48
|
September
25, 2036
|
||||
|
II-4-A
|
Variable(2)
|
$
|
8,881,217.20
|
September
25, 2036
|
||||
|
II-4-B
|
Variable(2)
|
$
|
8,881,217.20
|
September
25, 2036
|
||||
|
II-5-A
|
Variable(2)
|
$
|
10,052,297.69
|
September
25, 2036
|
||||
|
II-5-B
|
Variable(2)
|
$
|
10,052,297.69
|
September
25, 2036
|
||||
|
II-6-A
|
Variable(2)
|
$
|
11,175,337.64
|
September
25, 2036
|
||||
|
II-6-B
|
Variable(2)
|
$
|
11,175,337.64
|
September
25, 2036
|
||||
|
II-7-A
|
Variable(2)
|
$
|
12,245,163.45
|
September
25, 2036
|
||||
|
II-7-B
|
Variable(2)
|
$
|
12,245,163.45
|
September
25, 2036
|
||||
|
II-8-A
|
Variable(2)
|
$
|
13,240,711.21
|
September
25, 2036
|
||||
|
II-8-B
|
Variable(2)
|
$
|
13,240,711.21
|
September
25, 2036
|
||||
|
II-9-A
|
Variable(2)
|
$
|
13,969,818.75
|
September
25, 2036
|
||||
|
II-9-B
|
Variable(2)
|
$
|
13,969,818.75
|
September
25, 2036
|
||||
|
II-10-A
|
Variable(2)
|
$
|
13,323,488.75
|
September
25, 2036
|
||||
|
II-10-B
|
Variable(2)
|
$
|
13,323,488.75
|
September
25, 2036
|
||||
|
II-11-A
|
Variable(2)
|
$
|
12,706,722.15
|
September
25, 2036
|
||||
|
II-11-B
|
Variable(2)
|
$
|
12,706,722.15
|
September
25, 2036
|
||||
|
II-12-A
|
Variable(2)
|
$
|
12,119,149.43
|
September
25, 2036
|
||||
|
II-12-B
|
Variable(2)
|
$
|
12,119,149.43
|
September
25, 2036
|
||||
|
II-13-A
|
Variable(2)
|
$
|
11,558,922.85
|
September
25, 2036
|
||||
|
II-13-B
|
Variable(2)
|
$
|
11,558,922.85
|
September
25, 2036
|
||||
|
II-14-A
|
Variable(2)
|
$
|
11,025,303.34
|
September
25, 2036
|
||||
|
II-14-B
|
Variable(2)
|
$
|
11,025,303.34
|
September
25, 2036
|
||||
|
II-15-A
|
Variable(2)
|
$
|
10,516,073.65
|
September
25, 2036
|
||||
|
II-15-B
|
Variable(2)
|
$
|
10,516,073.65
|
September
25, 2036
|
||||
|
II-16-A
|
Variable(2)
|
$
|
10,031,233.76
|
September
25, 2036
|
||||
|
II-16-B
|
Variable(2)
|
$
|
10,031,233.76
|
September
25, 2036
|
||||
|
II-17-A
|
Variable(2)
|
$
|
9,568,935.97
|
September
25, 2036
|
||||
|
II-17-B
|
Variable(2)
|
$
|
9,568,935.97
|
September
25, 2036
|
||||
|
II-18-A
|
Variable(2)
|
$
|
9,127,702.11
|
September
25, 2036
|
||||
|
II-18-B
|
Variable(2)
|
$
|
9,127,702.11
|
September
25, 2036
|
||||
|
II-19-A
|
Variable(2)
|
$
|
8,966,951.09
|
September
25, 2036
|
||||
|
II-19-B
|
Variable(2)
|
$
|
8,966,951.09
|
September
25, 2036
|
||||
|
II-20-A
|
Variable(2)
|
$
|
14,729,967.87
|
September
25, 2036
|
||||
|
II-20-B
|
Variable(2)
|
$
|
14,729,967.87
|
September
25, 2036
|
||||
|
II-21-A
|
Variable(2)
|
$
|
13,329,770.97
|
September
25, 2036
|
||||
|
II-21-B
|
Variable(2)
|
$
|
13,329,770.97
|
September
25, 2036
|
||||
|
II-22-A
|
Variable(2)
|
$
|
12,064,457.12
|
September
25, 2036
|
||||
|
II-22-B
|
Variable(2)
|
$
|
12,064,457.12
|
September
25, 2036
|
||||
|
II-23-A
|
Variable(2)
|
$
|
10,940,308.55
|
September
25, 2036
|
||||
|
II-23-B
|
Variable(2)
|
$
|
10,940,308.55
|
September
25, 2036
|
||||
|
II-24-A
|
Variable(2)
|
$
|
9,812,834.09
|
September
25, 2036
|
||||
|
II-24-B
|
Variable(2)
|
$
|
9,812,834.09
|
September
25, 2036
|
||||
|
II-25-A
|
Variable(2)
|
$
|
6,112,234.53
|
September
25, 2036
|
||||
|
II-25-B
|
Variable(2)
|
$
|
6,112,234.53
|
September
25, 2036
|
||||
|
II-26-A
|
Variable(2)
|
$
|
5,792,580.19
|
September
25, 2036
|
||||
|
II-26-B
|
Variable(2)
|
$
|
5,792,580.19
|
September
25, 2036
|
||||
|
II-27-A
|
Variable(2)
|
$
|
5,489,555.26
|
September
25, 2036
|
||||
|
II-27-B
|
Variable(2)
|
$
|
5,489,555.26
|
September
25, 2036
|
||||
|
II-28-A
|
Variable(2)
|
$
|
5,200,572.95
|
September
25, 2036
|
||||
|
II-28-B
|
Variable(2)
|
$
|
5,200,572.95
|
September
25, 2036
|
||||
|
II-29-A
|
Variable(2)
|
$
|
4,930,437.31
|
September
25, 2036
|
||||
|
II-29-B
|
Variable(2)
|
$
|
4,930,437.31
|
September
25, 2036
|
||||
|
II-30-A
|
Variable(2)
|
$
|
4,674,344.29
|
September
25, 2036
|
||||
|
II-30-B
|
Variable(2)
|
$
|
4,674,344.29
|
September
25, 2036
|
||||
|
II-31-A
|
Variable(2)
|
$
|
4,697,255.93
|
September
25, 2036
|
||||
|
II-31-B
|
Variable(2)
|
$
|
4,697,255.93
|
September
25, 2036
|
||||
|
II-32-A
|
Variable(2)
|
$
|
5,088,601.54
|
September
25, 2036
|
||||
|
II-32-B
|
Variable(2)
|
$
|
5,088,601.54
|
September
25, 2036
|
||||
|
II-33-A
|
Variable(2)
|
$
|
4,730,514.77
|
September
25, 2036
|
||||
|
II-33-B
|
Variable(2)
|
$
|
4,730,514.77
|
September
25, 2036
|
||||
|
II-34-A
|
Variable(2)
|
$
|
4,399,035.06
|
September
25, 2036
|
||||
|
II-34-B
|
Variable(2)
|
$
|
4,399,035.06
|
September
25, 2036
|
||||
|
II-35-A
|
Variable(2)
|
$
|
4,097,857.84
|
September
25, 2036
|
||||
|
II-35-B
|
Variable(2)
|
$
|
4,097,857.84
|
September
25, 2036
|
||||
|
II-36-A
|
Variable(2)
|
$
|
3,699,860.47
|
September
25, 2036
|
||||
|
II-36-B
|
Variable(2)
|
$
|
3,699,860.47
|
September
25, 2036
|
||||
|
II-37-A
|
Variable(2)
|
$
|
3,164,393.25
|
September
25, 2036
|
||||
|
II-37-B
|
Variable(2)
|
$
|
3,164,393.25
|
September
25, 2036
|
||||
|
II-38-A
|
Variable(2)
|
$
|
2,997,729.54
|
September
25, 2036
|
||||
|
II-38-B
|
Variable(2)
|
$
|
2,997,729.54
|
September
25, 2036
|
||||
|
II-39-A
|
Variable(2)
|
$
|
2,839,934.85
|
September
25, 2036
|
||||
|
II-39-B
|
Variable(2)
|
$
|
2,839,934.85
|
September
25, 2036
|
||||
|
II-40-A
|
Variable(2)
|
$
|
2,689,900.55
|
September
25, 2036
|
||||
|
II-40-B
|
Variable(2)
|
$
|
2,689,900.55
|
September
25, 2036
|
||||
|
II-41-A
|
Variable(2)
|
$
|
2,548,735.28
|
September
25, 2036
|
||||
|
II-41-B
|
Variable(2)
|
$
|
2,548,735.28
|
September
25, 2036
|
||||
|
II-42-A
|
Variable(2)
|
$
|
2,416,069.49
|
September
25, 2036
|
||||
|
II-42-B
|
Variable(2)
|
$
|
2,416,069.49
|
September
25, 2036
|
||||
|
II-43-A
|
Variable(2)
|
$
|
2,290,425.01
|
September
25, 2036
|
||||
|
II-43-B
|
Variable(2)
|
$
|
2,290,425.01
|
September
25, 2036
|
||||
|
II-44-A
|
Variable(2)
|
$
|
2,171,432.29
|
September
25, 2036
|
||||
|
II-44-B
|
Variable(2)
|
$
|
2,171,432.29
|
September
25, 2036
|
||||
|
II-45-A
|
Variable(2)
|
$
|
2,059,091.34
|
September
25, 2036
|
||||
|
II-45-B
|
Variable(2)
|
$
|
2,059,091.34
|
September
25, 2036
|
||||
|
II-46-A
|
Variable(2)
|
$
|
1,952,663.08
|
September
25, 2036
|
||||
|
II-46-B
|
Variable(2)
|
$
|
1,952,663.08
|
September
25, 2036
|
||||
|
II-47-A
|
Variable(2)
|
$
|
1,852,147.49
|
September
25, 2036
|
||||
|
II-47-B
|
Variable(2)
|
$
|
1,852,147.49
|
September
25, 2036
|
||||
|
II-48-A
|
Variable(2)
|
$
|
1,757,175.04
|
September
25, 2036
|
||||
|
II-48-B
|
Variable(2)
|
$
|
1,757,175.04
|
September
25, 2036
|
||||
|
II-49-A
|
Variable(2)
|
$
|
1,667,006.65
|
September
25, 2036
|
||||
|
II-49-B
|
Variable(2)
|
$
|
1,667,006.65
|
September
25, 2036
|
||||
|
II-50-A
|
Variable(2)
|
$
|
1,582,381.39
|
September
25, 2036
|
||||
|
II-50-B
|
Variable(2)
|
$
|
1,582,381.39
|
September
25, 2036
|
||||
|
II-51-A
|
Variable(2)
|
$
|
1,501,821.11
|
September
25, 2036
|
||||
|
II-51-B
|
Variable(2)
|
$
|
1,501,821.11
|
September
25, 2036
|
||||
|
II-52-A
|
Variable(2)
|
$
|
1,425,695.33
|
September
25, 2036
|
||||
|
II-52-B
|
Variable(2)
|
$
|
1,425,695.33
|
September
25, 2036
|
||||
|
II-53-A
|
Variable(2)
|
$
|
1,353,264.99
|
September
25, 2036
|
||||
|
II-53-B
|
Variable(2)
|
$
|
1,353,264.99
|
September
25, 2036
|
||||
|
II-54-A
|
Variable(2)
|
$
|
1,285,638.69
|
September
25, 2036
|
||||
|
II-54-B
|
Variable(2)
|
$
|
1,285,638.69
|
September
25, 2036
|
||||
|
II-55-A
|
Variable(2)
|
$
|
1,220,599.19
|
September
25, 2036
|
||||
|
II-55-B
|
Variable(2)
|
$
|
1,220,599.19
|
September
25, 2036
|
||||
|
II-56-A
|
Variable(2)
|
$
|
1,159,624.67
|
September
25, 2036
|
||||
|
II-56-B
|
Variable(2)
|
$
|
1,159,624.67
|
September
25, 2036
|
||||
|
II-57-A
|
Variable(2)
|
$
|
1,101,976.02
|
September
25, 2036
|
||||
|
II-57-B
|
Variable(2)
|
$
|
1,101,976.02
|
September
25, 2036
|
||||
|
II-58-A
|
Variable(2)
|
$
|
1,047,653.26
|
September
25, 2036
|
||||
|
II-58-B
|
Variable(2)
|
$
|
1,047,653.26
|
September
25, 2036
|
||||
|
II-59-A
|
Variable(2)
|
$
|
995,917.30
|
September
25, 2036
|
||||
|
II-59-B
|
Variable(2)
|
$
|
995,917.30
|
September
25, 2036
|
||||
|
II-60-A
|
Variable(2)
|
$
|
20,501,484.13
|
September
25, 2036
|
||||
|
II-60-B
|
Variable(2)
|
$
|
20,501,484.13
|
September
25, 2036
|
||||
|
(1)
|
For
purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations,
the
Distribution Date immediately following the maturity date
for the Mortgage
Loan with the latest maturity date has been designated as
the “latest
possible maturity date” for each REMIC I Regular
Interest.
|
|
(2)
|
Calculated
in accordance with the definition of “REMIC I Remittance Rate”
herein.
|
REMIC
II
As
provided herein, the Trustee will elect to treat the segregated pool
of assets
consisting of the REMIC I Regular Interests as a REMIC for federal
income tax
purposes, and such segregated pool of assets will be designated as
“REMIC II.”
The Class R-II Interest will evidence the sole class of “residual interests” in
REMIC II for purposes of the REMIC Provisions under federal income
tax law. The
following table irrevocably sets forth the designation, the REMIC II
Remittance
Rate, the initial Uncertificated Balance and, for purposes of satisfying
Treasury Regulation Section 1.860G-1(a)(4)(iii), the “latest possible maturity
date” for each of the REMIC II Regular Interests (as defined herein). None
of
the REMIC II Regular Interests will be certificated.
|
Designation
|
REMIC
II
Remittance
Rate
|
Initial
Uncertificated
Balance
|
Latest
Possible
Maturity
Date(1)
|
|
|
II-LTAA
|
Variable(2)
|
$
|
505,527,726.84
|
September
25, 2036
|
|
II-LTA1
|
Variable(2)
|
$
|
1,033,660.00
|
September
25, 2036
|
|
II-LTA2
|
Variable(2)
|
$
|
1,609,000.00
|
September
25, 2036
|
|
II-LTA3
|
Variable(2)
|
$
|
392,000.00
|
September
25, 2036
|
|
II-LTA4
|
Variable(2)
|
$
|
666,500.00
|
September
25, 2036
|
|
II-LTA5
|
Variable(2)
|
$
|
260,525.00
|
September
25, 2036
|
|
II-LTM1
|
Variable(2)
|
$
|
196,020.00
|
September
25, 2036
|
|
II-LTM2
|
Variable(2)
|
$
|
260,500.00
|
September
25, 2036
|
|
II-LTM3
|
Variable(2)
|
$
|
87,695.00
|
September
25, 2036
|
|
II-LTM4
|
Variable(2)
|
$
|
87,690.00
|
September
25, 2036
|
|
II-LTM5
|
Variable(2)
|
$
|
90,270.00
|
September
25, 2036
|
|
II-LTM6
|
Variable(2)
|
$
|
69,635.00
|
September
25, 2036
|
|
II-LTM7
|
Variable(2)
|
$
|
61,900.00
|
September
25, 2036
|
|
II-LTM8
|
Variable(2)
|
$
|
43,845.00
|
September
25, 2036
|
|
II-LTM9
|
Variable(2)
|
$
|
59,320.00
|
September
25, 2036
|
|
II-LTM10
|
Variable(2)
|
$
|
77,375.00
|
September
25, 2036
|
|
II-LTM11
|
Variable(2)
|
$
|
72,215.00
|
September
25, 2036
|
|
II-LTZZ
|
Variable(2)
|
$
|
5,248,742.38
|
September
25, 2036
|
|
II-LTP
|
Variable(2)
|
$
|
100.00
|
September
25, 2036
|
|
II-LT1SUB
|
Variable(2)
|
$
|
6,245.09
|
September
25, 2036
|
|
II-LT1GRP
|
Variable(2)
|
$
|
26,918.30
|
September
25, 2036
|
|
II-LT2SUB
|
Variable(2)
|
$
|
17,690.13
|
September
25, 2036
|
|
II-LT2GRP
|
Variable(2)
|
$
|
76,250.63
|
September
25, 2036
|
|
II-LTXX
|
Variable(2)
|
$
|
515,717,515.07
|
September
25, 2036
|
|
II-LTIO
|
Variable(2)
|
$
|
515,844,500.00
|
September
25, 2036
|
________________
|
(1)
|
For
purposes of Section 1.860G-1(a)(4)(iii) of the Treasury Regulations,
the
Distribution Date immediately following the maturity date
for the Mortgage
Loan with the latest maturity date has been designated as
the “latest
possible maturity date” for each REMIC II Regular
Interest.
|
|
(2)
|
Calculated
in accordance with the definition of “REMIC II Remittance Rate”
herein.
|
|
(3)
|
REMIC
II Regular Interest II-LTIO will not have an Uncertificated
Balance, but
will accrue interest on its Uncertificated Notional Amount.
|
REMIC
III
As
provided herein, the Trustee will elect to treat the segregated pool
of assets
consisting of the REMIC II Regular Interests as a REMIC for federal
income tax
purposes, and such segregated pool of assets will be designated as
“REMIC III.”
The Class R-III Interest will evidence the sole class of “residual interests” in
REMIC III for purposes of the REMIC Provisions under federal income
tax law. The
following table irrevocably sets forth the designation, the Pass-Through
Rate,
the initial aggregate Certificate Principal Balance and, for purposes
of
satisfying Treasury regulation section 1.860G-1(a)(4)(iii), the “latest possible
maturity date” for the indicated Classes of Certificates.
Each
Certificate, other than the Class P Certificate, the Class CE Certificate,
the
Class R Certificates and the Class R-X Certificates, represents ownership
of a
Regular Interest in REMIC III and also represents (i) the right to
receive
payments with respect to the Net WAC Rate Carryover Amount (as defined
herein)
and (ii) the obligation to pay Class IO Distribution Amounts (as defined
herein). The entitlement to principal of the Regular Interest which
corresponds
to each Certificate shall be equal in amount and timing to the entitlement
to
principal of such Certificate.
|
Designation
|
Pass-Through
Rate
|
Initial
Aggregate
Certificate
Principal Balance
|
Latest
Possible
Maturity
Date(1)
|
|
|
Class
A-1
|
Variable(2)
|
$
|
206,732,000.00
|
September
25, 2036
|
|
Class
A-2
|
Variable(2)
|
$
|
321,800,000.00
|
September
25, 2036
|
|
Class
A-3
|
Variable(2)
|
$
|
78,400,000.00
|
September
25, 2036
|
|
Class
A-4
|
Variable(2)
|
$
|
133,300,000.00
|
September
25, 2036
|
|
Class
A-5
|
Variable(2)
|
$
|
52,105,000.00
|
September
25, 2036
|
|
Class
M-1
|
Variable(2)
|
$
|
39,204,000.00
|
September
25, 2036
|
|
Class
M-2
|
Variable(2)
|
$
|
52,100,000.00
|
September
25, 2036
|
|
Class
M-3
|
Variable(2)
|
$
|
17,539,000.00
|
September
25, 2036
|
|
Class
M-4
|
Variable(2)
|
$
|
17,538,000.00
|
September
25, 2036
|
|
Class
M-5
|
Variable(2)
|
$
|
18,054,000.00
|
September
25, 2036
|
|
Class
M-6
|
Variable(2)
|
$
|
13,927,000.00
|
September
25, 2036
|
|
Class
M-7
|
Variable(2)
|
$
|
12,380,000.00
|
September
25, 2036
|
|
Class
M-8
|
Variable(2)
|
$
|
8,769,000.00
|
September
25, 2036
|
|
Class
M-9
|
Variable(2)
|
$
|
11,864,000.00
|
September
25, 2036
|
|
Class
M-10
|
Variable(2)
|
$
|
15,475,000.00
|
September
25, 2036
|
|
Class
M-11
|
Variable(2)
|
$
|
14,443,000.00
|
September
25, 2036
|
|
Class
CE Interest
|
Variable(3)
|
$
|
18,059,238.45
|
September
25, 2036
|
|
Class
P Interest
|
N/A(4)
|
$
|
100.00
|
September
25, 2036
|
|
Class
Swap-IO Interest
|
N/A(5)
|
N/A
|
September
25, 2036
|
|
_______________
| (1) |
For
purposes of Section 1.860G-1(a)(4)(iii) of the Treasury Regulations,
the
Distribution Date immediately following the maturity date
for the Mortgage
Loan with the latest maturity date has been designated as
the “latest
possible maturity date” for each REMIC III Regular
Interest.
|
| (2) |
Calculated
in accordance with the definition of “Pass-Through Rate”
herein.
|
| (3) |
The
Class CE Interest will accrue interest at its variable Pass-Through
Rate
on the Notional Amount of the Class CE Interest outstanding
from time to
time, which shall equal the Uncertificated Balance of the
REMIC II Regular
Interests (other than REMIC II Regular Interest II-LTP).
The Class CE
Interest will not accrue interest on its Uncertificated
Balance.
|
| (4) |
The
Class P Interest will not accrue interest.
|
| (5) |
The
Class Swap-IO Interest will not have a Pass-Through Rate
or a Certificate
Principal Balance, but will be entitled to 100% of the amounts
distributed
on REMIC II Regular Interest
II-LTIO.
|
REMIC
IV
As
provided herein, the Trustee shall make an election to treat the segregated
pool
of assets consisting of the Class CE Interest as a REMIC for federal
income tax
purposes, and such segregated pool of assets will be designated as
“REMIC IV.”
The Class R-IV Interest represents the sole class of “residual interests” in
REMIC IV for purposes of the REMIC Provisions.
The
following table irrevocably sets forth the Class designation, Pass-Through
Rate
and Original Class Certificate Principal Balance for the indicated
Class of
Certificates that represents a “regular interest” in REMIC IV created
hereunder:
|
Class
Designation
|
Pass-Through
Rate
|
Initial
Aggregate
Certificate
Principal Balance
|
Latest
Possible
Maturity
Date(1)
|
|
Class
CE Certificates
|
Variable(2)
|
$
18,059,238.45
|
September
25, 2036
|
_______________
| (1) |
For
purposes of Section 1.860G-1(a)(4)(iii) of the Treasury Regulations,
the
Distribution Date immediately following the maturity date
for the Mortgage
Loans with the latest maturity date has been designated as
the “latest
possible maturity date” for the Class CE
Certificates.
|
| (2) |
The
Class CE Certificates will receive 100% of amounts received
in respect of
the Class CE Interest.
|
REMIC
V
As
provided herein, the Trustee shall make an election to treat the segregated
pool
of assets consisting of the Class P Interest as a REMIC for federal
income tax
purposes, and such segregated pool of assets will be designated as
“REMIC V.”
The Class R-V Interest represents the sole class of “residual interests” in
REMIC V for purposes of the REMIC Provisions.
The
following table irrevocably sets forth the Class designation, Pass-Through
Rate
and Original Class Certificate Principal Balance for the indicated
Class of
Certificates that represents a “regular interest” in REMIC V created
hereunder:
|
Class
Designation
|
Pass-Through
Rate
|
Initial
Aggregate
Certificate
Principal Balance
|
Latest
Possible
Maturity
Date(1)
|
|
Class
P Certificates
|
Variable(2)
|
$100.00
|
September
25, 2036
|
_______________
| (1) |
For
purposes of Section 1.860G-1(a)(4)(iii) of the Treasury Regulations,
the
Distribution Date immediately following the maturity date
for the Mortgage
Loans with the latest maturity date has been designated as
the “latest
possible maturity date” for the Class P
Certificates.
|
| (2) |
The
Class P Certificates will receive 100% of amounts received
in respect of
the Class P Interest.
|
REMIC
VI
As
provided herein, the Trustee shall make an election to treat the segregated
pool
of assets consisting of the Class SWAP-IO Interest as a REMIC for federal
income
tax purposes, and such segregated pool of assets shall be designated
as “REMIC
VI.” The Class R-VI Interest represents the sole class of “residual interests”
in REMIC VI for purposes of the REMIC Provisions. The following table
irrevocably sets forth the designation, the Pass-Through Rate, the
initial
aggregate Certificate Principal Balance and, for purposes of satisfying
Treasury
regulation Section 1.860G-1(a)(4)(iii), the “latest possible maturity date” for
the indicated REMIC VI Regular Interest SWAP-IO, which will be
uncertificated.
|
Designation
|
Pass-Through
Rate
|
Initial
Aggregate
Certificate
Principal Balance
|
Latest
Possible
Maturity
Date(1)
|
||||
|
SWAP-IO
|
Variable(2)
|
N/A
|
September
25, 2036
|
________________
|
(1)
|
For
purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations,
the
Distribution Date immediately following the maturity date
for the Mortgage
Loan with the latest maturity date has been designated as
the “latest
possible maturity date” for REMIC VI Regular Interest
SWAP-IO.
|
|
(2)
|
REMIC
VI Regular Interest SWAP-IO shall receive 100% of amounts
received in
respect of the Class SWAP-IO
Interest.
|
As
of the
Cut-off Date, the Mortgage Loans had an aggregate Stated Principal
Balance equal
to $1,031,689,338.45.
In
consideration of the mutual agreements herein contained, the Depositor,
the
Servicer, the Master Servicer, the Trust Administrator and the Trustee
agree as
follows:
ARTICLE
I
DEFINITIONS
| SECTION 1.01. |
Defined
Terms.
|
Whenever
used in this Agreement, including, without limitation, in the Preliminary
Statement hereto, the following words and phrases, unless the context otherwise
requires, shall have the meanings specified in this Article. Unless otherwise
specified, all calculations described herein shall be made on the basis of
a
360-day year consisting of twelve 30-day months.
“10-K
Filing Deadline”: The meaning set forth in Section 4.06(a)(iv).
“Accepted
Master Servicing Practices”: With respect to any Mortgage Loan, as applicable,
either (x) those customary mortgage loan master servicing practices of prudent
mortgage servicing institutions that master service mortgage loans of the
same
type and quality as such Mortgage Loan in the jurisdiction where the related
Mortgaged Property is located, to the extent applicable to the Master Servicer
(except in its capacity as successor to the Servicer), or (y) as provided
in
Section 3A.01 hereof, but in no event below the standard set forth in
clause (x).
“Accrual
Period”: With respect to the Class A Certificates and the Mezzanine Certificates
and each Distribution Date, the period commencing on the preceding Distribution
Date (or in the case of the first such Accrual Period, commencing on the
Closing
Date) and ending on the day preceding the current Distribution Date. With
respect to the Class CE Certificates and the REMIC Regular Interests and
each
Distribution Date, the calendar month prior to the month of such Distribution
Date.
“Additional
Disclosure”: The meaning set forth in Section 4.06(a)(v).
“Additional
Form 10-D Disclosure”: The meaning set forth in Section 4.06(a)(i).
“Additional
Form 10-K Disclosure”: The meaning set forth in Section
4.06(a)(iv).
“Adjustable-Rate
Mortgage Loan”: Each of the Mortgage Loans identified in the Mortgage Loan
Schedule as having a Mortgage Rate that is subject to adjustment.
“Adjusted
Net Maximum Mortgage Rate”: With respect to any Mortgage Loan (or the related
REO Property), as of any date of determination, a per annum rate of interest
equal to the applicable Maximum Mortgage Rate for such Mortgage Loan (or
the
Mortgage Rate in the case of any Fixed-Rate Mortgage Loan) as of the first
day
of the month preceding the month in which the related Distribution Date occurs
minus
the
sum of (i) the Servicing Fee Rate and (ii) the Credit Risk Manager Fee
Rate.
“Adjusted
Net Mortgage Rate”: With respect to any Mortgage Loan (or the related REO
Property), as of any date of determination, a per annum rate of interest
equal
to the applicable Mortgage Rate for such Mortgage Loan as of the first day
of
the month preceding the month in which the related Distribution Date occurs
minus
the
sum of (i) the Servicing Fee Rate and (ii) the Credit Risk Manager Fee
Rate.
“Adjustment
Date”: With respect to each Adjustable-Rate Mortgage Loan, the first day of the
month in which the Mortgage Rate of such Mortgage Loan changes pursuant to
the
related Mortgage Note. The first Adjustment Date following the Cut-off Date
as
to each Adjustable-Rate Mortgage Loan is set forth in the Mortgage Loan
Schedule.
“Advance”:
With respect to any Distribution Date, as to any Mortgage Loan or REO Property,
any advance made by the Servicer in respect of Monthly Payments due during
the
related Due Period pursuant to Section 4.03 or by the Master Servicer (in
its
capacity as successor Servicer) or any other successor Servicer pursuant
to
Section 4.03.
“Advance
Facility”: As defined in Section 3.26 hereof.
“Advancing
Person”: As defined in Section 3.26 hereof.
“Affiliate”:
With respect to any specified Person, any other Person controlling or controlled
by or under common control with such specified Person. For the purposes of
this
definition, “control” when used with respect to any specified Person means the
power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract
or
otherwise, and the terms “controlling” and “controlled” have meanings
correlative to the foregoing.
“Aggregate
Loss Severity Percentage”: With respect to any Distribution Date, the percentage
equivalent of a fraction, the numerator of which is the aggregate amount
of
Realized Losses incurred on any Mortgage Loans from the Cut-off Date to the
last
day of the preceding calendar month and the denominator of which is the
aggregate Stated Principal Balance of such Mortgage Loans immediately prior
to
the liquidation of such Mortgage Loans.
“Agreement”:
This Pooling and Servicing Agreement and all amendments hereof and supplements
hereto.
“Allocated
Realized Loss Amount”: With respect to any Distribution Date and any Class of
Mezzanine Certificates, (i) the sum of (a) any Realized Losses allocated
to such
Class of Certificates on such Distribution Date and (b) the amount of any
Allocated Realized Loss Amount for such Class of Certificates remaining
undistributed from the previous Distribution Date reduced by (ii) the amount
of
any Subsequent Recoveries added to the Certificate Principal Balance of such
Class of Certificates.
“Assessment
of Compliance”: As defined in Section 3.21.
“Assignment”:
An assignment of Mortgage, notice of transfer or equivalent instrument, in
recordable form (excepting therefrom, if applicable, the mortgage recordation
information which has not been required pursuant to Section 2.01 hereof or
returned by the applicable recorder’s office), which is sufficient under the
laws of the jurisdiction wherein the related Mortgaged Property is located
to
reflect of record the sale of the Mortgage, which assignment, notice of transfer
or equivalent instrument may be in the form of one or more blanket assignments
covering Mortgages secured by Mortgaged Properties located in the same county,
if permitted by law.
“Assignment
Agreement”: The Assignment and Recognition Agreement, dated December 28, 2006,
among UBS Real Estate Securities Inc., Mortgage Asset Securitization
Transactions, Inc. and the Originator.
“Attestation
Report”: As defined in Section 3.21.
“Available
Funds”: With respect to any Distribution Date, an amount equal to the excess of
(i) the sum of (a) the aggregate of the related Monthly Payments received
on the
Mortgage Loans by the Servicer on or prior to the related Determination Date,
(b) Net Liquidation Proceeds, Insurance Proceeds, Principal Prepayments,
Subsequent Recoveries, proceeds from repurchases of and substitutions for
such
Mortgage Loans and other unscheduled recoveries of principal and interest
in
respect of the Mortgage Loans received by the Servicer during the related
Prepayment Period, (c) the aggregate of any amounts received by the Servicer
in
respect of a related REO Property and withdrawn from any REO Account and
remitted to the Master Servicer for such Distribution Date, (d) the aggregate
of
any amounts on deposit in the Distribution Account representing Compensating
Interest paid by the Servicer or the Master Servicer in respect of related
Prepayment Interest Shortfalls for such Distribution Date, (e) the aggregate
of
any Advances made by the Servicer for such Distribution Date in respect of
the
Mortgage Loans and (f) the aggregate of any related Advances made by the
Master
Servicer (or other successor Servicer) in respect of the Mortgage Loans for
such
Distribution Date pursuant to Section 4.03 over (ii) the sum of (a) amounts
reimbursable or payable to the Servicer pursuant to Section 3.11(a) or to
the
Master Servicer pursuant to Section 3A.12, (b) Extraordinary Trust Fund
Expenses reimbursable to the Trustee, the Servicer, the Master Servicer or
the
Trust Administrator pursuant to Section 3A.12, (c) amounts in respect of
the items set forth in clauses (i)(a) through (i)(f) above deposited in the
Collection Account or the Distribution Account, as the case may be, in error,
(d) the amount of any Prepayment Charges collected by the Servicer in connection
with the full or partial prepayment of any of the Mortgage Loans, any Originator
Prepayment Charge Payment Amount and any Servicer Prepayment Charge Payment
Amount, (e) any indemnification and reimbursement amounts owed to the Trust
Administrator, the Trustee or the Custodian payable from the Distribution
Account pursuant to Section 8.05, (f) the Credit Risk Manager Fee, (g)
without duplication, any amounts in respect of the items set forth in clauses
(i)(a) and (i)(b) permitted hereunder to be retained by the Master Servicer
or
to be withdrawn by the Master Servicer from the Distribution Account pursuant
to
Section 3A.12, (h) Servicing Fees retained by the Servicer pursuant to
Section 3.11 and (i) any Net Swap Payment or Swap Termination Payment owed
to
the Swap Provider (other than any Swap Termination Payment owed to the Swap
Provider resulting from a Swap Provider Trigger Event). Notwithstanding any
of
the foregoing, with respect to any items that are part of the Available Funds
as
defined above and that are required to be remitted by the Servicer to the
Master
Servicer, the Available Funds shall not be deemed to include any portion
of such
items that are not actually remitted by the Servicer to the Master Servicer.
“Back-Up
Certification”: The meaning set forth in Section 4.06(a)(iv).
“Balloon
Mortgage Loan”: A Mortgage Loan that provides for the payment of the unamortized
principal balance of such Mortgage Loan in a single payment at the maturity
of
such Mortgage Loan that is substantially greater than the preceding monthly
payment.
“Balloon
Payment”: A payment of the unamortized principal balance of a Mortgage Loan in a
single payment at the maturity of such Mortgage Loan that is substantially
greater than the preceding Monthly Payment.
“Bankruptcy
Code”: The Bankruptcy Reform Act of 1978 (Title 11 of the United States Code),
as amended.
“Book-Entry
Certificate”: The Class A Certificates and the Mezzanine Certificates for so
long as the Certificates of such Class shall be registered in the name of
the
Depository or its nominee.
“Book-Entry
Custodian”: The custodian appointed pursuant to Section 5.01.
“Business
Day”: Any day other than a Saturday, a Sunday or a day on which banking or
savings and loan institutions in the State of New Jersey, the State of
California, the State of New York, or in the cities in which the Corporate
Trust
Office of the Trustee or the Corporate Trust Office of the Trust Administrator
are located, are authorized or obligated by law or executive order to be
closed.
“Cap
Account”: The account or accounts created and maintained pursuant to Section
4.10. The Cap Account must be an Eligible Account.
“Certificate”:
Any one of the Mortgage Pass-Through Certificates, Series 2006-NC3, Class
A-1,
Class X-0, Xxxxx X-0, Class X-0, Xxxxx X-0, Class M-1, Class M-2, Class M-3,
Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9, Class M-10,
Class M-11, Class CE, Class P, Class R or Class R-X, issued under this
Agreement.
“Certificate
Factor”: With respect to any Class of Regular Certificates as of any
Distribution Date, a fraction, expressed as a decimal carried to at least
six
places, the numerator of which is the aggregate Certificate Principal Balance
(or the Notional Amount, in the case of the Class CE Certificates) of such
Class
of Certificates on such Distribution Date (after giving effect to any
distributions of principal and allocations of Realized Losses in reduction
of
the Certificate Principal Balance (or the Notional Amount, in the case of
the
Class CE Certificates) of such Class of Certificates to be made on such
Distribution Date), and the denominator of which is the initial aggregate
Certificate Principal Balance (or the Notional Amount, in the case of the
Class
CE Certificates) of such Class of Certificates as of the Closing
Date.
“Certificate
Margin”: With respect to each Class A Certificate and Mezzanine Certificate and,
for purposes of the Marker Rate, the specified REMIC II Regular Interest,
as
follows:
|
Class
|
REMIC
II Regular Interest
|
Certificate
Margin
|
|
|
(1)
(%)
|
(2)
(%)
|
||
|
A-1
|
II-LTA1
|
0.130
|
0.260
|
|
X-0
|
XX-XXX0
|
0.000
|
0.000
|
|
X-0
|
XX-XXX0
|
0.100
|
0.200
|
|
X-0
|
XX-XXX0
|
0.000
|
0.000
|
|
X-0
|
XX-XXX0
|
0.210
|
0.420
|
|
M-1
|
II-LTM1
|
0.230
|
0.345
|
|
M-2
|
II-LTM2
|
0.270
|
0.405
|
|
M-3
|
II-LTM3
|
0.320
|
0.480
|
|
M-4
|
II-LTM4
|
0.350
|
0.525
|
|
M-5
|
II-LTM5
|
0.370
|
0.555
|
|
M-6
|
II-LTM6
|
0.440
|
0.660
|
|
M-7
|
II-LTM7
|
0.820
|
1.230
|
|
M-8
|
II-LTM8
|
1.400
|
2.100
|
|
M-9
|
II-LTM9
|
2.250
|
3.375
|
|
M-10
|
II-LTM10
|
2.700
|
4.050
|
|
M-11
|
II-LTM11
|
2.700
|
4.050
|
__________
|
(1)
|
For
the Interest Accrual Period for each Distribution Date on or prior
to the
Optional Termination Date.
|
|
(2)
|
For
the Interest Accrual Period for each Distribution Date after the
Optional
Termination Date.
|
“Certificateholder”
or “Holder”: The Person in whose name a Certificate is registered in the
Certificate Register, except that a Disqualified Organization or a Non-United
States Person shall not be a Holder of a Residual Certificate for any purposes
hereof and, solely for the purposes of giving any consent pursuant to this
Agreement, any Certificate registered in the name of the Depositor, the Servicer
or the Master Servicer or any Affiliate thereof shall be deemed not to be
outstanding and the Voting Rights to which it is entitled shall not be taken
into account in determining whether the requisite percentage of Voting Rights
necessary to effect any such consent has been obtained, except as otherwise
provided in Section 11.01. The Trust Administrator, the Trustee and the
NIMS Insurer may conclusively rely upon a certificate of the Depositor, the
Servicer or the Master Servicer in determining whether a Certificate is held
by
an Affiliate thereof. All references herein to “Holders” or “Certificateholders”
shall reflect the rights of Certificate Owners as they may indirectly exercise
such rights through the Depository and participating members thereof, except
as
otherwise specified herein; provided, however, that the Trust Administrator,
the
Trustee and the NIMS Insurer shall be required to recognize as a “Holder” or
“Certificateholder” only the Person in whose name a Certificate is registered in
the Certificate Register.
“Certificate
Owner”: With respect to a Book-Entry Certificate, the Person who is the
beneficial owner of such Certificate as reflected on the books of the Depository
or on the books of a Depository Participant or on the books of an indirect
participating brokerage firm for which a Depository Participant acts as
agent.
“Certificate
Principal Balance”: With respect to each Class A Certificate, Mezzanine
Certificate or Class P Certificate as of any date of determination, the
Certificate Principal Balance of such Certificate on the Distribution Date
immediately prior to such date of determination plus any Subsequent Recoveries
added to the Certificate Principal Balance of such Certificate pursuant to
Section 4.01, minus all distributions allocable to principal made thereon
and Realized Losses allocated thereto on such immediately prior Distribution
Date (or, in the case of any date of determination up to and including the
first
Distribution Date, the initial Certificate Principal Balance of such
Certificate, as stated on the face thereof). With respect to each Class CE
Certificate as of any date of determination, an amount equal to the Percentage
Interest evidenced by such Certificate times the excess, if any, of (A) the
then
aggregate Uncertificated Balance of the REMIC II Regular Interests over (B)
the
then aggregate Certificate Principal Balance of the Class A Certificates,
the
Mezzanine Certificates and the Class P Certificates then
outstanding.
“Certificate
Register”: The register maintained pursuant to Section 5.02.
“Certification
Parties”: The meaning set forth in Section 4.06(a)(iv).
“Certifying
Person”: The meaning set forth in Section 4.06(a)(iv).
“Class”:
Collectively, all of the Certificates bearing the same class
designation.
“Class
A
Certificates”: Any of the Class A-1 Certificates, Class A-2 Certificates, Class
A-3 Certificates, Class A-4 Certificates or Class A-5 Certificates.
“Class
A-1 Certificate”: Any one of the Class A-1 Certificates executed, authenticated
and delivered by the Trust Administrator, substantially in the form annexed
hereto as Exhibit A-A-1 and evidencing (i) a Regular Interest in REMIC III,
(ii)
the right to receive the Net WAC Rate Carryover Amount and (iii) the obligation
to pay the Class IO Distribution Amount.
“Class
A-2 Certificate”: Any one of the Class A-2 Certificates executed, authenticated
and delivered by the Trust Administrator, substantially in the form annexed
hereto as Exhibit A-A-2 and evidencing (i) a Regular Interest in REMIC III,
(ii)
the right to receive the Net WAC Rate Carryover Amount and (iii) the obligation
to pay the Class IO Distribution Amount.
“Class
A-3 Certificate”: Any one of the Class A-3 Certificates executed, authenticated
and delivered by the Trust Administrator, substantially in the form annexed
hereto as Exhibit A-A-3 and evidencing (i) a Regular Interest in REMIC III,
(ii)
the right to receive the Net WAC Rate Carryover Amount and (iii) the obligation
to pay the Class IO Distribution Amount.
“Class
A-4 Certificate”: Any one of the Class A-4 Certificates executed, authenticated
and delivered by the Trust Administrator, substantially in the form annexed
hereto as Exhibit A-A-4 and evidencing (i) a Regular Interest in REMIC III,
(ii)
the right to receive the Net WAC Rate Carryover Amount and (iii) the obligation
to pay the Class IO Distribution Amount.
“Class
A-5 Certificate”: Any one of the Class A-5 Certificates executed, authenticated
and delivered by the Trust Administrator, substantially in the form annexed
hereto as Exhibit A-A-5 and evidencing (i) a Regular Interest in REMIC III,
(ii)
the right to receive the Net WAC Rate Carryover Amount and (iii) the obligation
to pay the Class IO Distribution Amount.
“Class
CE
Certificate”: Any one of the Class CE Certificates executed, authenticated and
delivered by the Trust Administrator, substantially in the form annexed hereto
as Exhibit A-CE and evidencing (i) a Regular Interest in REMIC IV, (ii) the
obligation to pay Net WAC Rate Carryover Amounts and Swap Termination Payments
and (iii) the right to receive the Class IO Distribution Amount.
“Class
CE
Interest”: An uncertificated interest in the Trust Fund held by the Trustee on
behalf of the Holders of the Class CE Certificates, evidencing a Regular
Interest in REMIC III for purposes of the REMIC Provisions.
“Class
IO
Distribution Amount”: As defined in Section 4.08 hereof. For purposes of
clarity, the Class IO Distribution Amount for any Distribution Date shall
equal
the amount payable to the Trust Administrator on such Distribution Date in
excess of the amount payable on the Class SWAP-IO Interest on such Distribution
Date, all as further provided in Section 4.08 hereof.
“Class
M-1 Certificate”: Any one of the Class M-1 Certificates executed, authenticated
and delivered by the Trust Administrator, substantially in the form annexed
hereto as Exhibit A-M-1 and evidencing (i) a Regular Interest in REMIC III,
(ii)
the right to receive the Net WAC Rate Carryover Amount and (iii) the obligation
to pay the Class IO Distribution Amount.
“Class
M-2 Certificate”: Any one of the Class M-2 Certificates executed, authenticated
and delivered by the Trust Administrator, substantially in the form annexed
hereto as Exhibit A-M-2 and evidencing (i) a Regular Interest in REMIC III,
(ii)
the right to receive the Net WAC Rate Carryover Amount and (iii) the obligation
to pay the Class IO Distribution Amount.
“Class
M-3 Certificate”: Any one of the Class M-3 Certificates executed, authenticated
and delivered by the Trust Administrator, substantially in the form annexed
hereto as Exhibit A-M-3 and evidencing (i) a Regular Interest in REMIC III,
(ii)
the right to receive the Net WAC Rate Carryover Amount and (iii) the obligation
to pay the Class IO Distribution Amount.
“Class
M-4 Certificate”: Any one of the Class M-4 Certificates executed, authenticated
and delivered by the Trust Administrator, substantially in the form annexed
hereto as Exhibit A-M-4 and evidencing (i) a Regular Interest in REMIC III,
(ii)
the right to receive the Net WAC Rate Carryover Amount and (iii) the obligation
to pay the Class IO Distribution Amount.
“Class
M-4 Principal Distribution Amount”: With respect to any Distribution Date, the
excess of (x) the sum of (i) the aggregate Certificate Principal Balance
of the
Class A Certificates (after taking into account the distribution of the Senior
Principal Distribution Amount on such Distribution Date), (ii) the aggregate
Certificate Principal Balance of the Sequential Class M Certificates (after
taking into account the distribution of the Sequential Class M Principal
Distribution Amount on such Distribution Date) and (iii) the Certificate
Principal Balance of the Class M-4 Certificates immediately prior to such
Distribution Date over (y) the lesser of (A) the product of (i) 78.10%
and
(ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the
last
day of the related Due Period (after giving effect to scheduled payments
of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period) and (B) the excess of the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving
effect
to scheduled payments of principal due during the related Due Period, to
the
extent received or advanced, and unscheduled collections of principal received
during the related Prepayment Period) over $5,158,446.69
“Class
M-5 Certificate”: Any one of the Class M-5 Certificates executed, authenticated
and delivered by the Trust Administrator, substantially in the form annexed
hereto as Exhibit A-M-5 and evidencing (i) a Regular Interest in REMIC III,
(ii)
the right to receive the Net WAC Rate Carryover Amount and (iii) the obligation
to pay the Class IO Distribution Amount.
“Class
M-5 Principal Distribution Amount”: With respect to any Distribution Date, the
excess of (x) the sum of (i) the aggregate Certificate Principal Balance
of the
Class A Certificates (after taking into account the distribution of the Senior
Principal Distribution Amount on such Distribution Date), (ii) the aggregate
Certificate Principal Balance of the Sequential Class M Certificates (after
taking into account the distribution of the Sequential Class M Principal
Distribution Amount on such Distribution Date), (iii) the Certificate Principal
Balance of the Class M-4 Certificates (after taking into account the
distribution of the Class M-4 Principal Distribution Amount on such Distribution
Date) and (iv) the Certificate Principal Balance of the Class M-5 Certificates
immediately prior to such Distribution Date over (y) the lesser of (A) the
product of (i) 81.60%
and
(ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the
last
day of the related Due Period (after giving effect to scheduled payments
of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period) and (B) the excess of the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving
effect
to scheduled payments of principal due during the related Due Period, to
the
extent received or advanced, and unscheduled collections of principal received
during the related Prepayment Period) over $5,158,446.69.
“Class
M-6 Certificate”: Any one of the Class M-6 Certificates executed, authenticated
and delivered by the Trust Administrator, substantially in the form annexed
hereto as Exhibit A-M-6 and evidencing (i) a Regular Interest in REMIC III,
(ii)
the right to receive the Net WAC Rate Carryover Amount and (iii) the obligation
to pay the Class IO Distribution Amount.
“Class
M-6 Principal Distribution Amount”: With respect to any Distribution Date, the
excess of (x) the sum of (i) the aggregate Certificate Principal Balance
of the
Class A Certificates (after taking into account the distribution of the Senior
Principal Distribution Amount on such Distribution Date), (ii) the aggregate
Certificate Principal Balance of the Sequential Class M Certificates (after
taking into account the distribution of the Sequential Class M Principal
Distribution Amount on such Distribution Date), (iii) the Certificate Principal
Balance of the Class M-4 Certificates (after taking into account the
distribution of the Class M-4 Principal Distribution Amount on such Distribution
Date), (iv) the Certificate Principal Balance of the Class M-5 Certificates
(after taking into account the distribution of the Class M-5 Principal
Distribution Amount on such Distribution Date) and (v) the Certificate Principal
Balance of the Class M-6 Certificates immediately prior to such Distribution
Date over (y) the lesser of (A) the product of (i) 84.30%
and
(ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the
last
day of the related Due Period (after giving effect to scheduled payments
of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period) and (B) the excess of the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving
effect
to scheduled payments of principal due during the related Due Period, to
the
extent received or advanced, and unscheduled collections of principal received
during the related Prepayment Period) over $5,158,446.69.
“Class
M-7 Certificate”: Any one of the Class M-7 Certificates executed, authenticated
and delivered by the Trust Administrator, substantially in the form annexed
hereto as Exhibit A-M-7 and evidencing (i) a Regular Interest in REMIC III,
(ii)
the right to receive the Net WAC Rate Carryover Amount and (iii) the obligation
to pay the Class IO Distribution Amount.
“Class
M-7 Principal Distribution Amount”: With respect to any Distribution Date, the
excess of (x) the sum of (i) the aggregate Certificate Principal Balance
of the
Class A Certificates (after taking into account the distribution of the Senior
Principal Distribution Amount on such Distribution Date), (ii) the aggregate
Certificate Principal Balance of the Sequential Class M Certificates (after
taking into account the distribution of the Sequential Class M Principal
Distribution Amount on such Distribution Date), (iii) the Certificate Principal
Balance of the Class M-4 Certificates (after taking into account the
distribution of the Class M-4 Principal Distribution Amount on such Distribution
Date), (iv) the Certificate Principal Balance of the Class M-5 Certificates
(after taking into account the distribution of the Class M-5 Principal
Distribution Amount on such Distribution Date), (v) the Certificate Principal
Balance of the Class M-6 Certificates (after taking into account the
distribution of the Class M-6 Principal Distribution Amount on such Distribution
Date) and (vi) the Certificate Principal Balance of the Class M-7 Certificates
immediately prior to such Distribution Date over (y) the lesser of (A) the
product of (i) 86.70%
and
(ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the
last
day of the related Due Period (after giving effect to scheduled payments
of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period) and (B) the excess of the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving
effect
to scheduled payments of principal due during the related Due Period, to
the
extent received or advanced, and unscheduled collections of principal received
during the related Prepayment Period) over $5,158,446.69.
“Class
M-8 Certificate”: Any one of the Class M-8 Certificates executed, authenticated
and delivered by the Trust Administrator, substantially in the form annexed
hereto as Exhibit A-M-8 and evidencing (i) a Regular Interest in REMIC III,
(ii)
the right to receive the Net WAC Rate Carryover Amount and (iii) the obligation
to pay the Class IO Distribution Amount.
“Class
M-8 Principal Distribution Amount”: With respect to any Distribution Date, the
excess of (x) the sum of (i) the aggregate Certificate Principal Balance
of the
Class A Certificates (after taking into account the distribution of the Senior
Principal Distribution Amount on such Distribution Date), (ii) the aggregate
Certificate Principal Balance of the Sequential Class M Certificates (after
taking into account the distribution of the Sequential Class M Principal
Distribution Amount on such Distribution Date), (iii) the Certificate Principal
Balance of the Class M-4 Certificates (after taking into account the
distribution of the Class M-4 Principal Distribution Amount on such Distribution
Date), (iv) the Certificate Principal Balance of the Class M-5 Certificates
(after taking into account the distribution of the Class M-5 Principal
Distribution Amount on such Distribution Date), (v) the Certificate Principal
Balance of the Class M-6 Certificates (after taking into account the
distribution of the Class M-6 Principal Distribution Amount on such Distribution
Date), (vi) the Certificate Principal Balance of the Class M-7 Certificates
(after taking into account the distribution of the Class M-7 Principal
Distribution Amount on such Distribution Date) and (vii) the Certificate
Principal Balance of the Class M-8 Certificates immediately prior to such
Distribution Date over (y) the lesser of (A) the product of (i) 88.40%
and
(ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the
last
day of the related Due Period (after giving effect to scheduled payments
of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period) and (B) the excess of the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving
effect
to scheduled payments of principal due during the related Due Period, to
the
extent received or advanced, and unscheduled collections of principal received
during the related Prepayment Period) over $5,158,446.69.
“Class
M-9 Certificate”: Any one of the Class M-9 Certificates executed, authenticated
and delivered by the Trust Administrator, substantially in the form annexed
hereto as Exhibit A-M-9 and evidencing (i) a Regular Interest in REMIC III,
(ii)
the right to receive the Net WAC Rate Carryover Amount and (iii) the obligation
to pay the Class IO Distribution Amount.
“Class
M-9 Principal Distribution Amount”: With respect to any Distribution Date, the
excess of (x) the sum of (i) the aggregate Certificate Principal Balance
of the
Class A Certificates (after taking into account the distribution of the Senior
Principal Distribution Amount on such Distribution Date), (ii) the aggregate
Certificate Principal Balance of the Sequential Class M Certificates (after
taking into account the distribution of the Sequential Class M Principal
Distribution Amount on such Distribution Date), (iii) the Certificate Principal
Balance of the Class M-4 Certificates (after taking into account the
distribution of the Class M-4 Principal Distribution Amount on such Distribution
Date), (iv) the Certificate Principal Balance of the Class M-5 Certificates
(after taking into account the distribution of the Class M-5 Principal
Distribution Amount on such Distribution Date), (v) the Certificate Principal
Balance of the Class M-6 Certificates (after taking into account the
distribution of the Class M-6 Principal Distribution Amount on such Distribution
Date), (vi) the Certificate Principal Balance of the Class M-7 Certificates
(after taking into account the distribution of the Class M-7 Principal
Distribution Amount on such Distribution Date), (vii) the Certificate Principal
Balance of the Class M-8 Certificates (after taking into account the
distribution of the Class M-8 Principal Distribution Amount on such Distribution
Date) and (viii) the Certificate Principal Balance of the Class M-9 Certificates
immediately prior to such Distribution Date over (y) the lesser of (A) the
product of (i) 90.70% and (ii) the aggregate Stated Principal Balance of
the
Mortgage Loans as of the last day of the related Due Period (after giving
effect
to scheduled payments of principal due during the related Due Period, to
the
extent received or advanced, and unscheduled collections of principal received
during the related Prepayment Period) and (B) the excess of the aggregate
Stated
Principal Balance of the Mortgage Loans as of the last day of the related
Due
Period (after giving effect to scheduled payments of principal due during
the
related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period) over
$5,158,446.69.
“Class
M-10 Certificate”: Any one of the Class M-10 Certificates executed,
authenticated and delivered by the Trust Administrator, substantially in
the
form annexed hereto as Exhibit A-M-10 and evidencing (i) a Regular Interest
in
REMIC III, (ii) the right to receive the Net WAC Rate Carryover Amount and
(iii)
the obligation to pay the Class IO Distribution Amount.
“Class
M-10 Principal Distribution Amount”: With respect to any Distribution Date, the
excess of (x) the sum of (i) the aggregate Certificate Principal Balance
of the
Class A Certificates (after taking into account the distribution of the Senior
Principal Distribution Amount on such Distribution Date), (ii) the aggregate
Certificate Principal Balance of the Sequential Class M Certificates (after
taking into account the distribution of the Sequential Class M Principal
Distribution Amount on such Distribution Date), (iii) the Certificate Principal
Balance of the Class M-4 Certificates (after taking into account the
distribution of the Class M-4 Principal Distribution Amount on such Distribution
Date), (iv) the Certificate Principal Balance of the Class M-5 Certificates
(after taking into account the distribution of the Class M-5 Principal
Distribution Amount on such Distribution Date), (v) the Certificate Principal
Balance of the Class M-6 Certificates (after taking into account the
distribution of the Class M-6 Principal Distribution Amount on such Distribution
Date), (vi) the Certificate Principal Balance of the Class M-7 Certificates
(after taking into account the distribution of the Class M-7 Principal
Distribution Amount on such Distribution Date), (vii) the Certificate Principal
Balance of the Class M-8 Certificates (after taking into account the
distribution of the Class M-8 Principal Distribution Amount on such Distribution
Date), (viii) the Certificate Principal Balance of the Class M-9 Certificates
(after taking into account the distribution of the Class M-9 Principal
Distribution Amount on such Distribution Date) and (ix) the Certificate
Principal Balance of the Class M-10 Certificates immediately prior to such
Distribution Date over (y) the lesser of (A) the product of (i) 93.70% and
(ii)
the aggregate Stated Principal Balance of the Mortgage Loans as of the last
day
of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period) and (B) the excess of the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving
effect
to scheduled payments of principal due during the related Due Period, to
the
extent received or advanced, and unscheduled collections of principal received
during the related Prepayment Period) over $5,158,446.69.
“Class
M-11 Certificate”: Any one of the Class M-11 Certificates executed,
authenticated and delivered by the Trust Administrator, substantially in
the
form annexed hereto as Exhibit A-M-11 and evidencing (i) a Regular Interest
in
REMIC III, (ii) the right to receive the Net WAC Rate Carryover Amount and
(iii)
the obligation to pay the Class IO Distribution Amount.
“Class
M-11 Principal Distribution Amount”: With respect to any Distribution Date, the
excess of (x) the sum of (i) the aggregate Certificate Principal Balance
of the
Class A Certificates (after taking into account the distribution of the Senior
Principal Distribution Amount on such Distribution Date), (ii) the aggregate
Certificate Principal Balance of the Sequential Class M Certificates (after
taking into account the distribution of the Sequential Class M Principal
Distribution Amount on such Distribution Date), (iii) the Certificate Principal
Balance of the Class M-4 Certificates (after taking into account the
distribution of the Class M-4 Principal Distribution Amount on such Distribution
Date), (iv) the Certificate Principal Balance of the Class M-5 Certificates
(after taking into account the distribution of the Class M-5 Principal
Distribution Amount on such Distribution Date), (v) the Certificate Principal
Balance of the Class M-6 Certificates (after taking into account the
distribution of the Class M-6 Principal Distribution Amount on such Distribution
Date), (vi) the Certificate Principal Balance of the Class M-7 Certificates
(after taking into account the distribution of the Class M-7 Principal
Distribution Amount on such Distribution Date), (vii) the Certificate Principal
Balance of the Class M-8 Certificates (after taking into account the
distribution of the Class M-8 Principal Distribution Amount on such Distribution
Date), (viii) the Certificate Principal Balance of the Class M-9 Certificates
(after taking into account the distribution of the Class M-9 Principal
Distribution Amount on such Distribution Date), (ix) the Certificate Principal
Balance of the Class M-10 Certificates (after taking into account the
distribution of the Class M-10 Principal Distribution Amount on such
Distribution Date) and (x) the Certificate Principal Balance of the Class
M-11
Certificates immediately prior to such Distribution Date over (y) the lesser
of
(A) the product of (i) 96.50% and (ii) the aggregate Stated Principal Balance
of
the Mortgage Loans as of the last day of the related Due Period (after giving
effect to scheduled payments of principal due during the related Due Period,
to
the extent received or advanced, and unscheduled collections of principal
received during the related Prepayment Period) and (B) the excess of the
aggregate Stated Principal Balance of the Mortgage Loans as of the last day
of
the related Due Period (after giving effect to scheduled payments of principal
due during the related Due Period, to the extent received or advanced, and
unscheduled collections of principal received during the related Prepayment
Period) over $5,158,446.69.
“Class
P
Certificate”: Any one of the Class P Certificates executed, authenticated and
delivered by the Trust Administrator, substantially in the form annexed hereto
as Exhibit A-P and evidencing a Regular Interest in REMIC V for purposes
of the
REMIC Provisions.
“Class
P
Interest”: An uncertificated interest in the Trust Fund held by the Trustee on
behalf of the Holders of the Class P Certificates, evidencing a Regular Interest
in REMIC III for purposes of the REMIC Provisions.
“Class
R
Certificate”: Any one of the Class R Certificates executed, authenticated and
delivered by the Trust Administrator, substantially in the form annexed hereto
as Exhibit A-R and evidencing the ownership of the Class R-I Interest, the
Class
R-II Interest and the Class R-III Interest.
“Class
R-X Certificate”: The Class R-X Certificate executed, authenticated and
delivered by the Trust Administrator, substantially in the form annexed hereto
as Exhibit A-RX and evidencing the ownership of the Class R-IV Interest,
the
Class R-V Interest and the Class R-VI Interest.
“Class
R-I Interest”: The uncertificated Residual Interest in REMIC I.
“Class
R-II Interest”: The uncertificated Residual Interest in REMIC II.
“Class
R-III Interest”: The uncertificated Residual Interest in REMIC III.
“Class
R-IV Interest”: The uncertificated Residual Interest in REMIC IV.
“Class
R-V Interest”: The uncertificated Residual Interest in REMIC V.
“Class
R-VI Interest”: The uncertificated Residual Interest in REMIC VI.
“Class
SWAP-IO Interest”: An uncertificated interest in the Trust Fund evidencing a
Regular Interest in REMIC III.
“Closing
Date”: December 28, 2006.
“Code”:
The Internal Revenue Code of 1986, as amended.
“Collection
Account”: The account or accounts created and maintained, or caused to be
created and maintained, by the Servicer pursuant to Section 3.10(a), which
shall
be entitled “HomEq Servicing, as a Servicer for U.S. Bank National Association,
as Trustee, in trust for the registered holders of MASTR Asset Backed Securities
Trust 2006-NC3, Mortgage Pass-Through Certificates.” The Collection Account must
be an Eligible Account.
“Commission”:
The U.S. Securities and Exchange Commission.
“Compensating
Interest”: With respect to the Servicer and any Principal Prepayment, the amount
in respect of Prepayment Interest Shortfalls required to be paid by the Servicer
pursuant to Section 3.24 from its own funds without right of reimbursement,
and
with respect to the Master Servicer, the amount in respect of Prepayment
Interest Shortfalls required to be paid by the Master Servicer pursuant to
Section 3A.10 from its own funds without right of reimbursement except as
provided in Section 3A.10, in each case, up to the aggregate compensation
payable to the Servicer or the Master Servicer, as applicable, for the related
collection period under this Agreement.
“Compensating
Interest Payment”: As defined in Section 3.24.
“Corporate
Trust Office”: The principal corporate trust office of the Trustee or the Trust
Administrator, as the case may be, at which at any particular time its corporate
trust business in connection with this Agreement shall be administered, which
office at the date of the execution of this instrument is located at (i)
with
respect to the Trustee, U.S. Bank National Association, 00 Xxxxxxxxxx Xxxxxx,
XX-XX-XX0X,
Xx.
Xxxx, Xxxxxxxxx 00000, Attention: Structured Finance/MASTR 2006-NC3, or at
such
other address as the Trustee may designate from time to time by notice to
the
Certificateholders, the Depositor, the Servicer, the Master Servicer, the
Originator, and the Trust Administrator, or (ii) with respect to the Trust
Administrator, (A) for Certificate transfer and surrender purposes, Xxxxx
Fargo
Bank, N.A., Xxxxx Xxxxxx xxx Xxxxxxxxx Xxxxxx, Xxxxxxxxxxx, Xxxxxxxxx 00000,
Attention: Corporate Trust Services—MASTR 2006-NC3 and (B) for all other
purposes, Xxxxx Fargo Bank, N.A., 0000 Xxx Xxxxxxxxx Xxxx, Xxxxxxxx, Xxxxxxxx
00000, Attention: Corporate Trust Services—MASTR 2006-NC3, or in each case, at
such other address as the Trust Administrator may designate from time to
time by
notice to the Certificateholders, the Depositor, the Servicer, the Master
Servicer, the Originator and the Trustee.
“Corresponding
Certificate”: With respect to each REMIC II Regular Interest set forth below,
the corresponding Regular Certificate set forth in the table below:
|
REMIC
II Regular Interest
|
Regular
Certificate
|
|
II-LTA1
|
Class
A-1
|
|
II-LTA2
|
Class
A-2
|
|
II-LTA3
|
Class
X-0
|
|
XX-XXX0
|
Xxxxx
X-0
|
|
XX-XXX0
|
Class
A-5
|
|
II-LTM1
|
Class
M-1
|
|
II-LTM2
|
Class
M-2
|
|
II-LTM3
|
Class
M-3
|
|
II-LTM4
|
Class
M-4
|
|
II-LTM5
|
Class
M-5
|
|
II-LTM6
|
Class
M-6
|
|
II-LTM7
|
Class
M-7
|
|
II-LTM8
|
Class
M-8
|
|
II-LTM9
|
Class
M-9
|
|
II-LTM10
|
Class
M-10
|
|
II-LTM11
|
Class
M-11
|
|
II-LTP
|
Class
P
|
“Credit
Enhancement Percentage”: For any Distribution Date, the percentage equivalent of
a fraction, the numerator of which is the sum of the aggregate Certificate
Principal Balance of the Mezzanine Certificates and the Class CE Certificates,
and the denominator of which is the aggregate Stated Principal Balance of
the
Mortgage Loans, calculated prior to taking into account distributions of
principal on the Mortgage Loans and distribution of the Group I Principal
Distribution Amount and the Group II Principal Distribution Amount to the
Certificates then entitled to distributions of principal on such Distribution
Date.
“Credit
Risk Management Agreement”: The respective agreements between the Credit Risk
Manager and the Servicer and/or Master Servicer regarding the loss mitigation
and advisory services to be provided by the Credit Risk Manager.
“Credit
Risk Manager”: Xxxxxxx Fixed Income Services Inc., a Colorado corporation,
formerly known as The Murrayhill Company, and its successors and assigns.
“Credit
Risk Manager Fee”: The amount payable to the Credit Risk Manager on each
Distribution Date as compensation for all services rendered by it in the
exercise and performance of any of the powers and duties of the Credit Risk
Manager under the Credit Risk Management Agreement and any other agreement
pursuant to which the Credit Risk Manager is to perform any duties with respect
to the Mortgage Loans, which amount shall equal one twelfth of the product
of
(i) the Credit Risk Manager Fee Rate (without regard to the words “per annum”)
and (ii) the aggregate Stated Principal Balance of the Mortgage Loans and
any
related REO Properties as of the first day of the related Due
Period.
“Credit
Risk Manager Fee Rate”: 0.0125% per annum.
“Cumulative
Loss Percentage”: With respect to any Distribution Date, the percentage
equivalent of a fraction, the numerator of which is the aggregate amount
of
Realized Losses incurred from the Cut-off Date to the last day of the preceding
calendar month and the denominator of which is the sum of the aggregate Stated
Principal Balance of the Mortgage Loans as of the Cut-off Date.
“Custodial
Agreement”: The Custodial Agreement, dated as of December 28, 2006, between the
Trustee and Deutsche Bank National Trust Company.
“Custodian”:
The
entity acting as custodian of the Mortgage Files on behalf of and for the
benefit of the Trustee, which as of the Closing Date shall be Deutsche
Bank National Trust Company. The parties hereto acknowledge that any duties
or
actions of Deutsche Bank National Trust Company as Custodian are subject
to the
terms and provisions of the Custodial Agreement.
“Cut-off
Date”: With respect to each Original Mortgage Loan, December 1, 2006. With
respect to all Qualified Substitute Mortgage Loans, their respective dates
of
substitution. References herein to the “Cut-off Date,” when used with respect to
more than one Mortgage Loan, shall be to the respective Cut-off Dates for
such
Mortgage Loans.
“Cut-off
Date Principal Balance”: With respect to any Mortgage Loan, the unpaid Stated
Principal Balance thereof as of the Cut-off Date of such Mortgage Loan (or
as of
the applicable date of substitution with respect to a Qualified Substitute
Mortgage Loan), after giving effect to scheduled payments due on or before
the
Cut-off Date, whether or not received.
“Debt
Service Reduction”: With respect to any Mortgage Loan, a reduction in the
scheduled Monthly Payment for such Mortgage Loan by a court of competent
jurisdiction in a proceeding under the Bankruptcy Code, except such a reduction
resulting from a Deficient Valuation.
“Deficient
Valuation”: With respect to any Mortgage Loan, a valuation of the related
Mortgaged Property by a court of competent jurisdiction in an amount less
than
the then outstanding principal balance of the Mortgage Loan, which valuation
results from a proceeding initiated under the Bankruptcy Code.
“Definitive
Certificates”: As defined in Section 5.01(b).
“Deleted
Mortgage Loan”: A Mortgage Loan replaced or to be replaced by a Qualified
Substitute Mortgage Loan.
“Delinquency
Percentage”: With respect to any Distribution Date, the percentage equivalent to
a fraction, the numerator of which is the aggregate Stated Principal Balance
of
all Mortgage Loans that, as of the close of business on the last day of the
previous calendar month, are 60 or more days delinquent (including Mortgage
Loans in foreclosure, have been converted to REO Properties or are in
bankruptcy), taking into account any prepayments received through the end
of the
related Prepayment Period, and the denominator of which is the aggregate
Principal Balance of all Mortgage Loans as of the close of business on the
last
day of such month, taking into account any prepayments received through the
end
of the related Prepayment Period.
“Depositor”:
Mortgage Asset Securitization Transactions, Inc., a Delaware corporation,
or its
successor in interest.
“Depository”:
The Depository Trust Company, or any successor Depository hereafter named.
The
nominee of the initial Depository, for purposes of registering those
Certificates that are to be Book-Entry Certificates, is Cede & Co. The
Depository shall at all times be a “clearing corporation” as defined in Section
8-102(3) of the Uniform Commercial Code of the State of New York and a “clearing
agency” registered pursuant to the provisions of Section 17A of the Securities
Exchange Act of 1934, as amended.
“Depository
Participant”: A broker, dealer, bank or other financial institution or other
Person for whom from time to time a Depository effects book-entry transfers
and
pledges of securities deposited with the Depository.
“Determination
Date”: With respect to any Distribution Date, the 15th
day of
the calendar month in which such Distribution Date occurs or, if such
15th
day is
not a Business Day, the Business Day immediately preceding such 15th
day.
“Directly
Operate”: With respect to any REO Property, the furnishing or rendering of
services to the tenants thereof, the management or operation of such REO
Property, the holding of such REO Property primarily for sale to customers,
the
performance of any construction work thereon or any use of such REO Property
in
a trade or business conducted by REMIC I other than through an Independent
Contractor; provided, however, that the Trustee (or the Servicer or the Master
Servicer on behalf of the Trustee) shall not be considered to Directly Operate
an REO Property solely because the Trustee (or the Servicer or the Master
Servicer on behalf of the Trustee) establishes rental terms, chooses tenants,
enters into or renews leases, deals with taxes and insurance, or makes decisions
as to repairs or capital expenditures with respect to such REO
Property.
“Discount
Factor”: With
respect to each Distribution Date, the product of each Projected Zero Factor
for
each preceding Distribution Date, including such Distribution Date, with
the
Projected Zero Factor for the Significance Percentage Calculation Date equal
to
1.
“Disqualified
Organization”: Any of the following: (i) the United States, any State or
political subdivision thereof, any possession of the United States, or any
agency or instrumentality of any of the foregoing (other than an instrumentality
which is a corporation if all of its activities are subject to tax and, except
for Xxxxxxx Mac, a majority of its board of directors is not selected by
such
governmental unit), (ii) any foreign government, any international organization,
or any agency or instrumentality of any of the foregoing, (iii) any organization
(other than certain farmers’ cooperatives described in Section 521 of the
Code) which is exempt from the tax imposed by Chapter 1 of the Code (including
the tax imposed by Section 511 of the Code on unrelated business taxable
income), (iv) rural electric and telephone cooperatives described in
Section 1381(a)(2)(C) of the Code, (v) an “electing large partnership” and
(vi) any other Person so designated by the Trustee or the Trust Administrator
based upon an Opinion of Counsel that the holding of an Ownership Interest
in a
Residual Certificate by such Person may cause any Trust REMIC or any Person
having an Ownership Interest in any Class of Certificates (other than such
Person) to incur a liability for any federal tax imposed under the Code that
would not otherwise be imposed but for the Transfer of an Ownership Interest
in
a Residual Certificate to such Person. The terms “United States,” “State” and
“international organization” shall have the meanings set forth in
Section 7701 of the Code or successor provisions.
“Distribution
Account”: The trust account or accounts created and maintained by the Trust
Administrator pursuant to Section 3A.11 which shall be entitled “Xxxxx
Fargo Bank, N.A. as Trust Administrator, in trust for the registered holders
of
MASTR Asset Backed Securities Trust 2006-NC3, Mortgage Pass-Through
Certificates, Series 2006-NC3—Distribution Account.” The Distribution Account
must be an Eligible Account.
“Distribution
Date”: The 25th
day of
any month, or if such 25th
day is
not a Business Day, the Business Day immediately following such 25th
day,
commencing in January 2007.
“Due
Date”: With respect to each Distribution Date, the first day of the calendar
month in which such Distribution Date occurs, which is generally the day
of the
month on which the Monthly Payment is due on a Mortgage Loan, exclusive of
any
days of grace.
“Due
Period”: With respect to any Distribution Date, the period commencing on the
second day of the month immediately preceding the month in which such
Distribution Date occurs and ending on the related Due Date.
“Eligible
Account”: Any of (i) an account or accounts maintained with a federal or state
chartered depository institution or trust company the short-term unsecured
debt
obligations of which (or, in the case of a depository institution or trust
company that is the principal subsidiary of a holding company, the short-term
unsecured debt obligations of such holding company) are rated P-1 by Xxxxx’x and
A-1+ by S&P (or comparable ratings if Xxxxx’x and S&P are not the Rating
Agencies) at the time any amounts are held on deposit therein, (ii) with
respect
to any escrow account, an account or accounts the deposits in which are fully
insured by the FDIC (to the limits established by such corporation), the
uninsured deposits in which account are otherwise secured such that, as
evidenced by an Opinion of Counsel delivered to the NIMS Insurer, the Trust
Administrator, the Trustee and to each Rating Agency, the Certificateholders
will have a claim with respect to the funds in such account or a perfected
first
priority security interest against such collateral (which shall be limited
to
Permitted Investments) securing such funds that is superior to claims of
any
other depositors or creditors of the depository institution with which such
account is maintained, (iii) a trust account or accounts maintained with
the
trust department of a federal or state chartered depository institution,
national banking association or trust company acting in its fiduciary capacity
or (iv) an account otherwise acceptable to the NIMS Insurer and to each Rating
Agency without reduction or withdrawal of their then current ratings of the
Certificates as evidenced by a letter from each Rating Agency to the Trust
Administrator, the Trustee and the NIMS Insurer. Eligible Accounts may bear
interest.
“ERISA”:
The Employee Retirement Income Security Act of 1974, as amended.
“Estate
in Real Property”: A fee simple estate in a parcel of land.
“Excess
Overcollateralized Amount”: With respect to the Class A Certificates and the
Mezzanine Certificates and any Distribution Date, the excess, if any, of
(i) the
Overcollateralized Amount for such Distribution Date, assuming that 100%
of the
Principal Remittance Amount is applied as a principal distribution on such
Distribution Date over (ii) the Overcollateralization Target Amount for such
Distribution Date.
“Exchange
Act”: The Securities Exchange Act of 1934, as amended, and the rules and
regulations thereunder.
“Extra
Principal Distribution Amount”: With respect to any Distribution Date, the
lesser of (x) the sum of (i) Monthly Interest Distributable Amount payable
on
the Class CE Certificates on such Distribution Date as reduced by Realized
Losses allocated thereto with respect to such Distribution Date pursuant
to
Section 4.04 and (ii) any amounts received under the Interest Rate Swap
Agreement or the Interest Rate Cap Agreements for this purpose and (y) the
Overcollateralization Deficiency Amount for such Distribution Date.
“Extraordinary
Trust Fund Expense”: Any amounts reimbursable to the Master Servicer pursuant to
Section 3A.03 or Section 6.03, to the Trustee pursuant to Section 3.06
or Section 7.02, to the Servicer, the Trustee or the Trust Administrator,
or any
director, officer, employee or agent of the Trustee or the Trust Administrator
from the Trust Fund pursuant to Section 6.03, Section 8.05 or
Section 10.01(c) and any amounts payable from the Distribution Account in
respect of taxes pursuant to Section 10.01(g)(iii).
“Xxxxxx
Xxx”: Xxxxxx Xxx, formerly known as the Federal National Mortgage Association,
or any successor thereto.
“FDIC”:
Federal Deposit Insurance Corporation or any successor thereto.
“Final
Recovery Determination”: With respect to any defaulted Mortgage Loan or any REO
Property (other than a Mortgage Loan or REO Property purchased or repurchased
by
the Seller, the Originator, the Depositor, the Servicer or the NIMS Insurer
pursuant to or as contemplated by Section 2.03, Section 3.16(c) or Section
9.01), a determination made by the Servicer that all Insurance Proceeds,
Liquidation Proceeds and other payments or recoveries which the Servicer,
in its
reasonable good faith judgment, expects to be finally recoverable in respect
thereof have been so recovered. The Servicer shall maintain records, prepared
by
a Servicing Officer, of each Final Recovery Determination made thereby.
“Fitch”:
Fitch Ratings, or its successor in interest.
“Fixed-Rate
Mortgage Loans”: Each of the Mortgage Loans identified in the Mortgage Loan
Schedule whose Mortgage Rates remain fixed for the life of the Mortgage Loan.
“Fixed
Swap Payment”: With respect to any Distribution Date, a fixed amount equal to
the related amount set forth in the Interest Rate Swap Agreement.
“Floating
Swap Payment”: With respect to any Distribution Date, a floating amount equal to
the product of (i) one-month LIBOR (as determined pursuant to the Interest
Rate
Swap Agreement for such Distribution Date), (ii) the related Base Calculation
Amount (as defined in the Interest Rate Swap Agreement), (iii) 250 and (iv)
a
fraction, the numerator of which is the actual number of days elapsed from
and
including the previous Distribution Date to but excluding the current
Distribution Date (or, for the first Distribution Date, the actual number
of
days elapsed from the Closing Date to but excluding the first Distribution
Date), and the denominator of which is 360.
“Form
8-K
Disclosure Information”: The meaning set forth in Section
4.06(a)(iii).
“Formula
Rate”: For any Distribution Date and the Class A Certificates and the Mezzanine
Certificates, the lesser of (i) One-Month LIBOR plus the related Certificate
Margin and (ii) the Maximum Cap Rate.
“Xxxxxxx
Mac”: Xxxxxxx Mac, formerly known as the Federal Home Loan Mortgage Corporation,
or any successor thereto.
“Gross
Margin”: With respect to each Adjustable-Rate Mortgage Loan, the fixed
percentage set forth in the related Mortgage Note that is added to the Index
on
each Adjustment Date in accordance with the terms of the related Mortgage
Note
used to determine the Mortgage Rate for such Adjustable-Rate Mortgage
Loan.
“Group
I
Allocation Percentage”: With respect to any Distribution Date, the percentage
equivalent of a fraction, the numerator of which is the Group I Principal
Remittance Amount for such Distribution Date, and the denominator of which
is
the Principal Remittance Amount for such Distribution Date.
“Group
I
Basic Principal Distribution Amount”: With respect to any Distribution Date, the
excess of (i) the Group I Principal Remittance Amount for such Distribution
Date
over (ii)(a) the Overcollateralization Release Amount, if any, for such
Distribution Date multiplied by (b) the Group I Allocation
Percentage.
“Group
I
Certificates”: The Class A-1 Certificates.
“Group
I
Interest Remittance Amount”: With respect to any Distribution Date, that portion
of the Available Funds for such Distribution Date attributable to interest
received or advanced with respect to the Group I Mortgage Loans.
“Group
I
Mortgage Loan”: A Mortgage Loan assigned to Loan Group I with a Stated Principal
Balance that conforms to Xxxxxx Xxx and Xxxxxxx Mac loan limits.
“Group
I
Principal Distribution Amount”: With respect to any Distribution Date, the sum
of (i) the Group I Basic Principal Distribution Amount for such Distribution
Date and (ii)(a) the Extra Principal Distribution Amount for such Distribution
Date multiplied by (b) the Group I Allocation Percentage.
“Group
I
Principal Remittance Amount”: With respect to any Distribution Date, the sum of
(i) each scheduled payment of principal collected or advanced on the Group
I
Mortgage Loans by the Servicer that was due during the related Due Period,
(ii)
the principal portion of all partial and full Principal Prepayments of the
Group
I Mortgage Loans applied by the Servicer during the related Prepayment Period,
(iii) the principal portion of all related Net Liquidation Proceeds, Insurance
Proceeds and Subsequent Recoveries received during such Prepayment Period
with
respect to the Group I Mortgage Loans, (iv) that portion of the Purchase
Price,
representing principal of any repurchased Group I Mortgage Loan, deposited
in
the Collection Account during such Prepayment Period, (v) the principal portion
of any related Substitution Adjustment Amounts deposited in the Collection
Account during such Prepayment Period with respect to the Group I Mortgage
Loans
and (vi) on the Distribution Date on which the Trust Fund is to be terminated
pursuant to Section 9.01, that portion of the Termination Price, in respect
of
principal on the Group I Mortgage Loans.
“Group
I
Senior Principal Distribution Amount”: The excess of (x) the aggregate
Certificate Principal Balance of the Group I Certificates immediately prior
to
such Distribution Date over (y) the lesser of (A) the product of (i) 53.60%
and
(ii) the aggregate Stated Principal Balance of the Group I Mortgage Loans
as of
the last day of the related Due Period (after giving effect to scheduled
payments of principal due during the related Due Period, to the extent received
or advanced, and unscheduled collections of principal received during the
related Prepayment Period) and (B) the excess of the aggregate Stated Principal
Balance of the Group I Mortgage Loans as of the last day of the related Due
Period (after giving effect to scheduled payments of principal due during
the
related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period) over
$1,345,915.13.
“Group
II
Allocation Percentage”: With respect to any Distribution Date, the percentage
equivalent of a fraction, the numerator of which is the Group II Principal
Remittance Amount for such Distribution Date, and the denominator of which
is
the Principal Remittance Amount for such Distribution Date.
“Group
II
Basic Principal Distribution Amount”: With respect to any Distribution Date, the
excess of (i) the Group II Principal Remittance Amount for such Distribution
Date over (ii)(a) the Overcollateralization Release Amount, if any, for such
Distribution Date multiplied by (b) the Group II Allocation
Percentage.
“Group
II
Certificates”: The Class A-2 Certificates, the Class A-3 Certificates, the Class
A-4 Certificates and the Class A-5 Certificates.
“Group
II
Interest Remittance Amount”: With respect to any Distribution Date, that portion
of the Available Funds for such Distribution Date attributable to interest
received or advanced with respect to the Group II Mortgage Loans.
“Group
II
Mortgage Loan”: A Mortgage Loan assigned to Loan Group II with a Stated
Principal Balance that may or may not conform to Xxxxxx Mae and Xxxxxxx Mac
loan
limits.
“Group
II
Principal Distribution Amount”: With respect to any Distribution Date, the sum
of (i) the Group II Basic Principal Distribution Amount for such Distribution
Date and (ii)(a) the Extra Principal Distribution Amount for such Distribution
Date multiplied by (b) the Group II Allocation Percentage.
“Group
II
Principal Remittance Amount”: With respect to any Distribution Date, the sum of
(i) each scheduled payment of principal collected or advanced on the Group
II
Mortgage Loans by the Servicer that was due during the related Due Period,
(ii)
the principal portion of all partial and full principal prepayments of the
Group
II Mortgage Loans applied by the Servicer during the related Prepayment Period,
(iii) the principal portion of all related Net Liquidation Proceeds, Insurance
Proceeds and Subsequent Recoveries received during such Prepayment Period
with
respect to the Group II Mortgage Loans, (iv) that portion of the Purchase
Price,
representing principal of any repurchased Group II Mortgage Loan, deposited
in
the Collection Account during such Prepayment Period, (v) the principal portion
of any related Substitution Adjustment Amounts deposited in the Collection
Account during such Prepayment Period with respect to the Group II Mortgage
Loans and (vi) on the Distribution Date on which the Trust Fund is to be
terminated pursuant to Section 9.01, that portion of the Termination Price,
in
respect of principal on the Group II Mortgage Loans.
“Group
II
Senior Principal Distribution Amount”: The excess of (x) the aggregate
Certificate Principal Balance of the Group II Certificates immediately prior
to
such Distribution Date over (y) the lesser of (A) the product of (i) 53.60%
and
(ii) the aggregate Stated Principal Balance of the Group II Mortgage Loans
as of
the last day of the related Due Period (after giving effect to scheduled
payments of principal due during the related Due Period, to the extent received
or advanced, and unscheduled collections of principal received during the
related Prepayment Period) and (B) the excess of the aggregate Stated Principal
Balance of the Group II Mortgage Loans as of the last day of the related
Due
Period (after giving effect to scheduled payments of principal due during
the
related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period) over
$3,812,531.56.
“Highest
Priority”: As of any date of determination, the Class of Mezzanine Certificates
then outstanding with a Certificate Principal Balance greater than zero,
with
the highest priority for payments pursuant to Section 4.01, in the
following order: Class X-0, Xxxxx X-0, Class M-3, Class M-4, Class M-5, Class
M-6, Class M-7, Class M-8, Class M-9, Class M-10 and Class M-11
Certificates.
“HomEq
Servicing”: Barclays Capital Real Estate Inc. d/b/a HomEq
Servicing.
“Indenture”:
An indenture relating to the issuance of notes secured by the Class CE
Certificates, the Class P Certificates and/or the Class R Certificates (or
any
portion thereof) which may or may not be guaranteed by the NIMS
Insurer.
“Independent”:
When used with respect to any accountants, a Person who is “independent” within
the meaning of Rule 2-01(B) of the Securities and Exchange Commission’s
Regulation S-X. Independent means, when used with respect to any other Person,
a
Person who (A) is in fact independent of another specified Person and any
affiliate of such other Person, (B) does not have any material direct or
indirect financial interest in such other Person or any affiliate of such
other
Person, (C) is not connected with such other Person or any affiliate of such
other Person as an officer, employee, promoter, underwriter, trustee, partner,
director or Person performing similar functions and (D) is not a member of
the
immediate family of a Person defined in clause (B) or (C) above.
“Independent
Contractor”: Either (i) any Person (other than the Servicer or the Master
Servicer) that would be an “independent contractor” with respect to REMIC I
within the meaning of Section 856(d)(3) of the Code if REMIC I were a real
estate investment trust (except that the ownership tests set forth in that
section shall be considered to be met by any Person that owns, directly or
indirectly, 35% or more of any Class of Certificates), so long as REMIC I
does
not receive or derive any income from such Person and provided that the
relationship between such Person and REMIC I is at arm’s length, all within the
meaning of Treasury Regulation Section 1.856-4(b)(5), or (ii) any other
Person (including the Servicer and the Master Servicer) if the Trust
Administrator has received an Opinion of Counsel for the benefit of the Trustee
and the Trust Administrator to the effect that the taking of any action in
respect of any REO Property by such Person, subject to any conditions therein
specified, that is otherwise herein contemplated to be taken by an Independent
Contractor will not cause such REO Property to cease to qualify as “foreclosure
property” within the meaning of Section 860G(a)(8) of the Code (determined
without regard to the exception applicable for purposes of Section 860D(a)
of the Code), or cause any income realized in respect of such REO Property
to
fail to qualify as Rents from Real Property.
“Index”:
With respect to each Adjustable Rate Mortgage Loan and with respect to each
related Adjustment Date, the index as specified in the related Mortgage
Note.
“Insurance
Proceeds”: Proceeds of any title policy, hazard policy or other insurance
policy, covering a Mortgage Loan to the extent such proceeds are not to be
applied to the restoration of the related Mortgaged Property or released
to the
Mortgagor in accordance with the procedures that the Servicer would follow
in
servicing mortgage loans held for its own account, subject to the terms and
conditions of the related Mortgage Note and Mortgage.
“Interest
Determination Date”: With respect to the Class A Certificates, the Mezzanine
Certificates, REMIC II Regular Interest II-LTA1, REMIC II Regular Interest
II-LTA2, REMIC II Regular Interest II-LTA3, REMIC II Regular Interest II-LTA4,
REMIC II Regular Interest II-LTA5, REMIC II Regular Interest II-LTM1, REMIC
II
Regular Interest II-LTM2, REMIC II Regular Interest II-LTM3, REMIC II Regular
Interest II-LTM4, REMIC II Regular Interest II-LTM5, REMIC II Regular Interest
II-LTM6, REMIC II Regular Interest II-LTM7, REMIC II Regular Interest II-LTM8,
REMIC
II
Regular Interest II-LTM9,
REMIC
II Regular Interest II-LTM10 and REMIC II Regular Interest II-LTM11 and any
Accrual Period therefor, the second London Business Day preceding the
commencement of such Accrual Period.
“Interest
Rate Cap Agreement I”: The Interest Rate Cap Agreement, dated as of December 28
2006, between the Trust Administrator and the Interest Rate Cap Provider,
including any schedule, confirmations, credit support annex or other credit
support document relating thereto, and attached hereto as Exhibit
K.
“Interest
Rate Cap Agreement II”: The Interest Rate Cap Agreement, dated as of December 28
2006, between the Trust Administrator and the Interest Rate Cap Provider,
including any schedule, confirmations, credit support annex or other credit
support document relating thereto, and attached hereto as Exhibit
K.
“Interest
Rate Cap Agreements”: Collectively, Interest Rate Cap Agreement I and Interest
Rate Cap Agreement II.
“Interest
Rate Cap Collateral Account”: Shall mean the segregated trust account created
and maintained by the Trust Administrator pursuant to Section 4.11
hereof.
“Interest
Rate Cap Credit Support Annex”: The credit support annex, dated as of December
28, 2006, between the Trust Administrator and the Interest Rate Cap Provider,
which is annexed to and forms part of each of the Interest Rate Cap
Agreements.
“Interest
Rate Cap Provider”: The cap provider under the Interest Rate Cap Agreements.
Initially, the Interest Rate Cap Provider shall be UBS AG.
“Interest
Rate Swap Agreement”: The interest rate swap agreement, dated as of December 28,
2006, between the Swap Provider and the Supplemental Interest Trust Trustee,
including any schedule, confirmations, credit support annex and/or other
credit
support documents relating thereto, and attached hereto as Exhibit
M.
“Late
Collections”: With respect to any Mortgage Loan and any Due Period, all amounts
received by the Servicer subsequent to the Determination Date immediately
following such Due Period, whether as late payments of Monthly Payments or
as
Insurance Proceeds, Liquidation Proceeds or otherwise, which represent late
payments or collections of principal and/or interest due (without regard
to any
acceleration of payments under the related Mortgage and Mortgage Note) but
delinquent for such Due Period and not previously recovered.
“Liquidated
Mortgage Loan”: As to any Distribution Date, any Mortgage Loan in respect of
which the Servicer has determined, in its reasonable judgment, as of the
end of
the related Prepayment Period, that all Liquidation Proceeds which it expects
to
recover with respect to the liquidation of the Mortgage Loan or disposition
of
the related REO Property have been recovered.
“Liquidation
Event”: With respect to any Mortgage Loan, any of the following events: (i) such
Mortgage Loan is paid in full; (ii) a Final Recovery Determination is made
as to
such Mortgage Loan; or (iii) such Mortgage Loan is removed from REMIC I by
reason of its being purchased, repurchased or replaced pursuant to or as
contemplated by Section 2.03, Section 3.16(c) or Section 9.01. With respect
to
any REO Property, either of the following events: (i) a Final Recovery
Determination is made as to such REO Property; or (ii) such REO Property
is
removed from REMIC I by reason of its being purchased pursuant to Section
9.01.
“Liquidation
Proceeds”: The amount (other than amounts received in respect of the rental of
any REO Property prior to REO Disposition) received by the Servicer in
connection with (i) the taking of all or a part of a Mortgaged Property by
exercise of the power of eminent domain or condemnation, (ii) the liquidation
of
a defaulted Mortgage Loan through a trustee’s sale, foreclosure sale or
otherwise, or (iii) the purchase, repurchase or substitution of a Mortgage
Loan
or an REO Property pursuant to or as contemplated by Section 2.03, Section
3.16(c) or Section 9.01.
“Loan-to-Value
Ratio”: As of any date of determination, the fraction, expressed as a
percentage, the numerator of which is the principal balance of the related
Mortgage Loan at such date and the denominator of which is the Value of the
related Mortgaged Property.
“Loan
Group”: Any of Loan Group I or Loan Group II, as the context
requires.
“Loan
Group I”: The group of Mortgage Loans identified in the Mortgage Loan Schedule
as having been assigned to Loan Group I.
“Loan
Group II”: The group of Mortgage Loans identified in the Mortgage Loan Schedule
as having been assigned to Loan Group II.
“London
Business Day”: Any day on which banks in the City of London and New York are
open and conducting transactions in United States dollars.
“Loss
Severity Percentage”: With respect to any Distribution Date, the percentage
equivalent of a fraction, the numerator of which is the amount of Realized
Losses incurred on a Mortgage Loan and the denominator of which is the principal
balance of such Mortgage Loan immediately prior to the liquidation of such
Mortgage Loan.
“Marker
Rate”: With respect to the Class CE Interest and any Distribution Date, a per
annum rate equal to two (2) times the weighted average of the REMIC II
Remittance Rate for each of REMIC II Regular Interests XX-XXX0, XX-XXX0,
XX-XXX0,
XX-XXX0, XX-XXX0, II-LTM1, II-LTM2, II-LTM3, II-LTM4, II-LTM5, II-LTM6, II-LTM7,
II-LTM8, II-LTM9, II-LTM10, II-LTM11 and II-LTZZ, with the rate on each such
REMIC II Regular Interest (other than REMIC II Regular Interest II-LTZZ)
subject
to a cap equal to the lesser of (a) One-Month LIBOR plus the related Certificate
Margin and (b) the Net WAC Rate for the purpose of this calculation and with
the
rate on REMIC II Regular Interest II-LTZZ subject to a cap of zero for the
purpose of this calculation; provided, however, that solely for this purpose,
calculations of the REMIC II Remittance Rate and the related caps with respect
to such REMIC II Regular Interests (other than REMIC II Regular Interest
II-LTZZ) shall be multiplied by a fraction, the numerator of which is the
actual
number of days elapsed in the related Accrual Period and the denominator
of
which is 30.
“Master
Consulting Agreement”: The master consulting agreement, dated as of July 30,
2004, by and between Mortgage Asset Securitization Transactions, Inc. and
the
Credit Risk Manager.
“Master
Servicer”: As of the Closing Date, Xxxxx Fargo Bank, N.A. and thereafter, its
respective successors in interest who meet the qualifications of the Master
Servicer under this Agreement or any successor appointed hereunder. The Master
Servicer and the Trust Administrator shall at all times be the same
Person.
“Master
Servicer Event of Default”: One or more of the events described in
Section 7.01(b).
“Master
Servicing Compensation”: The meaning specified in
Section 3A.09.
“Master
Servicing Transfer Costs”: Shall mean all reasonable out-of-pocket costs and
expenses incurred by the Trustee in connection with the transfer of master
servicing from a predecessor master servicer, including, without limitation,
any
reasonable costs or expenses associated with the complete transfer of all
servicing data and the completion, correction or manipulation of such servicing
data as may be required by the Trustee to correct any errors or insufficiencies
in the servicing data or otherwise to enable the Trustee to master service
the
Mortgage Loans properly and effectively.
“Maximum
Cap Rate”: For
any
Distribution Date with respect to the Group I Certificates, a per annum rate
equal to the sum of (i) the product of (x) the weighted average of the Adjusted
Net Maximum Mortgage Rates of the Group I Mortgage Loans, weighted based
on
their outstanding Stated Principal Balances as of the first day of the calendar
month preceding the month in which the Distribution Date occurs and (y) a
fraction, the numerator of which is 30 and the denominator of which is the
actual number of days elapsed in the related Accrual Period and (ii) an amount,
expressed as a percentage, equal to a fraction, the numerator of which is
equal
to any
Net
Swap
Payment made by the Swap Provider and the denominator of which is equal to
the
aggregate Stated Principal Balance of the Mortgage Loans, multiplied by 12,
minus (a) an amount, expressed as a percentage, equal to the product of (i)
the
Net Swap Payment, if any, paid by the Trust for such Distribution Date divided
by the aggregate Stated Principal Balance of the Mortgage Loans and (ii)
12 and
(b) an amount, expressed as a percentage, equal to the product of (i) the
Swap
Termination Payment, if any, due from the Trust (other than any Swap Termination
Payment resulting from a Swap Provider Trigger Event) for such Distribution
Date, divided by the aggregate Stated Principal Balance of the Mortgage Loans
and (ii) 12.
For
any
Distribution Date with respect to the Group II Certificates, a per annum
rate
equal to the sum of (i) the product of (x) the weighted average of the Adjusted
Net Maximum Mortgage Rates of the Group II Mortgage Loans, weighted based
on
their outstanding Stated Principal Balances as of the first day of the calendar
month preceding the month in which the Distribution Date occurs and (y) a
fraction, the numerator of which is 30 and the denominator of which is the
actual number of days elapsed in the related Accrual Period and (ii) an amount,
expressed as a percentage, equal to a fraction, the numerator of which is
equal
to any Net Swap Payment made by the Swap Provider and the denominator of
which
is equal to the aggregate Stated Principal Balance of the Mortgage Loans,
multiplied by 12, minus (a) an amount, expressed as a percentage, equal to
the
product of (i) the Net Swap Payment, if any, paid by the Trust for such
Distribution Date divided by the aggregate Stated Principal Balance of the
Mortgage Loans and (ii) 12 and (b) an amount, expressed as a percentage,
equal
to the product of (i) the Swap Termination Payment, if any, due from the
Trust
(other than any Swap Termination Payment resulting from a Swap Provider Trigger
Event) for such Distribution Date, divided by the aggregate Stated Principal
Balance of the Mortgage Loans and (ii) 12.
For
any
Distribution Date with respect to the Mezzanine Certificates, a per annum
rate
equal to the weighted average (weighted on the basis of the results of
subtracting from the aggregate Stated Principal Balance of the applicable
Loan
Group, the current Certificate Principal Balance of the related Class A
Certificates) of the Maximum Cap Rate for the Group I Certificates and the
Maximum Cap Rate for the Group II Certificates.
“Maximum
II-LTZZ Uncertificated Interest Deferral Amount”: With respect to any
Distribution Date, the excess of (i) accrued interest at the REMIC II Remittance
Rate applicable to REMIC II Regular Interest II-LTZZ for such Distribution
Date
on a balance equal to the Uncertificated Balance of REMIC II Regular Interest
II-LTZZ minus the REMIC II Overcollateralization Amount, in each case for
such
Distribution Date, over (ii) Uncertificated Interest on REMIC II Regular
Interest II-LTA1, REMIC II Regular Interest II-LTA2, REMIC II Regular Interest
II-LTA3, REMIC II Regular Interest II-LTA4, REMIC II Regular Interest II-LTA5,
REMIC II Regular Interest II-LTM1, REMIC II Regular Interest II-LTM2, REMIC
II
Regular Interest II-LTM3, REMIC II Regular Interest II-LTM4, REMIC II Regular
Interest II-LTM5, REMIC II Regular Interest II-LTM6, REMIC II Regular Interest
II-LTM7, REMIC II Regular Interest II-LTM8, REMIC II Regular Interest II-LTM9,
REMIC II Regular Interest II-LTM10 and REMIC
II
Regular Interest II-LTM11
for
such Distribution Date, with the rate on each such REMIC II Regular Interest
subject to a cap equal to the lesser of (a) One-Month LIBOR plus the
related Certificate Margin and (b) the Net WAC Rate; provided, however, each
cap
shall be multiplied by a fraction, the numerator of which is the actual number
of days elapsed in the related Accrual Period and the denominator of which
is
30.
“Maximum
Mortgage Rate”: With respect to each Adjustable-Rate Mortgage Loan, the
percentage set forth in the related Mortgage Note as the maximum Mortgage
Rate
thereunder.
“MERS”:
Mortgage Electronic Registration Systems, Inc., a corporation organized and
existing under the laws of the State of Delaware, or any successor
thereto.
“MERS®
System”: The system of recording transfers of Mortgages electronically
maintained by MERS.
“Mezzanine
Certificate”: Any Class M-1 Certificate, Class M-2 Certificate, Class M-3
Certificate, Class M-4 Certificate, Class M-5 Certificate, Class M-6
Certificate, Class M-7 Certificate, Class M-8 Certificate, Class M-9
Certificate, Class M-10 Certificates or Class M-11 Certificate.
“MIN”:
The Mortgage Identification Number for Mortgage Loans registered with MERS
on
the MERS® System.
“Minimum
Mortgage Rate”: With respect to each Adjustable-Rate Mortgage Loan, the
percentage set forth in the related Mortgage Note as the minimum Mortgage
Rate
thereunder.
“MOM
Loan”: With respect to any Mortgage Loan, MERS acting as the mortgagee of such
Mortgage Loan, solely as nominee for the originator of such Mortgage Loan
and
its successors and assigns, at the origination thereof.
“Monthly
Interest Distributable Amount”: With respect to the Class A Certificates, the
Mezzanine Certificates and the Class CE Certificates and any Distribution
Date,
the amount of interest accrued during the related Accrual Period at the related
Pass-Through Rate on the Certificate Principal Balance (or Notional Amount
in
the case of the Class CE Certificates) of such Class immediately prior to
such
Distribution Date, calculated on an actual/360 basis, reduced (to not less
than
zero) by any Prepayment Interest Shortfalls (to the extent not covered by
payments made by the Servicer or the Master Servicer) and Relief Act Interest
Shortfalls (allocated to each such Certificate based on its respective
entitlements to interest irrespective of any Prepayment Interest Shortfalls
and
Relief Act Interest Shortfalls for such Distribution Date).
“Monthly
Payment”: With respect to any Mortgage Loan, the scheduled monthly payment of
principal and interest on such Mortgage Loan which is payable by the related
Mortgagor from time to time under the related Mortgage Note, determined:
(a)
after giving effect to (i) any Deficient Valuation and/or Debt Service Reduction
with respect to such Mortgage Loan and (ii) any reduction in the amount of
interest collectible from the related Mortgagor pursuant to the Relief Act;
(b)
without giving effect to any extension granted or agreed to by the Servicer
pursuant to Section 3.07 and (c) on the assumption that all other amounts,
if
any, due under such Mortgage Loan are paid when due.
“Monthly
Statement”: The statement prepared by the Trust Administrator pursuant to
Section 4.02.
“Moody’s”:
Xxxxx’x Investors Service, Inc. or its successor in interest.
“Mortgage”:
The mortgage, deed of trust or other instrument creating a first or second
lien
on, or first or second priority security interest in, a Mortgaged Property
securing a Mortgage Note.
“Mortgage
File”: The mortgage documents listed in Section 2.01 pertaining to a
particular Mortgage Loan and any additional documents required to be added
to
the Mortgage File pursuant to this Agreement.
“Mortgage
Loan”: Any Adjustable-Rate Mortgage Loan or Fixed-Rate Mortgage Loan transferred
and assigned to the Trustee and delivered to the Trustee pursuant to Section
2.01 or Section 2.03(b) of this Agreement as held from time to time as a
part of
the Trust, the Mortgage Loans so held being identified in the Mortgage Loan
Schedule.
“Mortgage
Loan Schedule”: As of any date, the list of Mortgage Loans included in REMIC I
on such date, attached hereto as Schedule 1. The Mortgage Loan Schedule shall
set forth the following information with respect to each Mortgage
Loan:
(i) the
Mortgage Loan identifying number;
(ii) [reserved];
(iii) the
state
and zip code of the Mortgaged Property;
(iv) a
code
indicating whether the Mortgaged Property was represented by the borrower,
at
the time of origination, as being owner-occupied;
(v) the
type
of Residential Dwelling constituting the Mortgaged Property;
(vi) the
original months to maturity;
(vii) the
stated remaining months to maturity from the Cut-off Date based on the original
amortization schedule;
(viii) the
Loan-to-Value Ratio at origination;
(ix) the
Mortgage Rate in effect immediately following the Cut-off Date;
(x) the
date
on which the first Monthly Payment was due on the Mortgage Loan;
(xi) the
stated maturity date;
(xii) the
amount of the Monthly Payment at origination;
(xiii) the
amount of the Monthly Payment due on the first Due Date after the Cut-off
Date;
(xiv) the
last
Due Date on which a Monthly Payment was actually applied to the unpaid Stated
Principal Balance;
(xv) the
original principal amount of the Mortgage Loan;
(xvi) the
Stated Principal Balance of the Mortgage Loan as of the close of business
on the
Cut-off Date;
(xvii) a
code
indicating the purpose of the Mortgage Loan (i.e.,
purchase financing, rate/term refinancing, cash-out refinancing);
(xviii) the
Mortgage Rate at origination;
(xix) a
code
indicating the documentation program (i.e.,
full
documentation, limited documentation, stated income documentation);
(xx) the
risk
grade assigned by the Originator;
(xxi) the
Value
of the Mortgaged Property;
(xxii) the
sale
price of the Mortgaged Property, if applicable;
(xxiii) the
actual unpaid principal balance of the Mortgage Loan as of the Cut-off
Date;
(xxiv) the
type
and term of the related Prepayment Charge;
(xxv) the
rounding code;
(xxvi) the
program code;
(xxvii) a
code
indicating the lien priority for Mortgage Loans;
(xxviii)
with
respect to each Adjustable Rate Mortgage Loan, the Minimum Mortgage Rate,
the
Maximum Mortgage Rate, the Gross Margin, the next Adjustment Date and the
Periodic Rate Cap;
(xxix) the
credit score (“FICO”) of such Mortgage Loan; and
(xxx) the
total
amount of points and fees charged such Mortgage Loan.
The
Mortgage Loan Schedule shall set forth the following information with respect
to
the Mortgage Loans in the aggregate and for each Loan Group as of the Cut-off
Date: (1) the number of Mortgage Loans (separately identifying the number
of
Fixed-Rate Mortgage Loans and the number of Adjustable-Rate Mortgage Loans);
(2)
the current Stated Principal Balance of the Mortgage Loans; (3) the weighted
average Mortgage Rate of the Mortgage Loans and (4) the weighted average
maturity of the Mortgage Loans. The Mortgage Loan Schedule shall be amended
from
time to time by the Depositor in accordance with the provisions of this
Agreement. With respect to any Qualified Substitute Mortgage Loan, the Cut-off
Date shall refer to the related Cut-off Date for such Mortgage Loan, determined
in accordance with the definition of Cut-off Date herein.
“Mortgage
Note”: The original executed note or other evidence of the indebtedness of a
Mortgagor under a Mortgage Loan.
“Mortgage
Pool”: The pool of Mortgage Loans, identified on the Mortgage Loan Schedule and
existing from time to time thereafter, and any REO Properties acquired in
respect thereof.
“Mortgage
Rate”: With respect to each Mortgage Loan, the annual rate at which interest
accrues on such Mortgage Loan from time to time in accordance with the
provisions of the related Mortgage Note, which rate with respect to the
Adjustable-Rate Mortgage Loans, (A) as of any date of determination until
the
first Adjustment Date following the Cut-off Date shall be the rate set forth
in
the Mortgage Loan Schedule as the Mortgage Rate in effect immediately following
the Cut-off Date and (B) as of any date of determination thereafter shall
be the
rate as adjusted on the most recent Adjustment Date equal to the sum, rounded
to
the nearest or next highest 0.125% as provided in the Mortgage Note, of the
Index, as most recently available as of a date prior to the Adjustment Date
as
set forth in the related Mortgage Note, plus the related Gross Margin; provided
that the Mortgage Rate on such Adjustable-Rate Mortgage Loan on any Adjustment
Date shall never be more than the lesser of (i) the sum of the Mortgage Rate
in
effect immediately prior to the Adjustment Date plus the related Periodic
Rate
Cap, if any, and (ii) the related Maximum Mortgage Rate, and shall never
be less
than the greater of (i) the Mortgage Rate in effect immediately prior to
the
Adjustment Date less the Periodic Rate Cap, if any, and (ii) the related
Minimum
Mortgage Rate. With respect to each Mortgage Loan that becomes an REO Property,
as of any date of determination, the annual rate determined in accordance
with
the immediately preceding sentence as of the date such Mortgage Loan became
an
REO Property.
“Mortgaged
Property”: The underlying property securing a Mortgage Loan, including any REO
Property, consisting of an Estate in Real Property improved by a Residential
Dwelling.
“Mortgagor”:
The obligor on a Mortgage Note.
“Net
Liquidation Proceeds”: With respect to any Liquidated Mortgage Loan or any other
disposition of the related Mortgaged Property (including REO Property) the
related Liquidation Proceeds and Insurance Proceeds net of Advances, Servicing
Advances, Servicing Fees and any other accrued and unpaid servicing fees
received and retained in connection with the liquidation of such Mortgage
Loan
or related Mortgaged Property and any amounts due on such Mortgage Loans
on or
prior to the Cut-off Date.
“Net
Monthly Excess Cashflow”: With respect to each Distribution Date, the sum of (a)
any Overcollateralization Release Amount for such Distribution Date and (b)
the
excess of (x) Available Funds for such Distribution Date over (y) the sum
for
such Distribution Date of (A) the Monthly Interest Distributable Amounts
for the
Class A Certificates and the Mezzanine Certificates, (B) the Unpaid Interest
Shortfall Amounts for the Class A Certificates and (C) the Principal Remittance
Amount.
“Net
Mortgage Rate”: With respect to any Mortgage Loan (or the related REO Property)
as of any date of determination, a per annum rate of interest equal to the
then
applicable Mortgage Rate for such Mortgage Loan minus the Servicing Fee
Rate.
“Net
Swap
Payment”: In the case of payments made by the Trust, the excess, if any, of (x)
the Fixed Swap Payment over (y) the Floating Swap Payment and in the case
of
payments made by the Swap Provider, the excess, if any, of (x) the Floating
Swap
Payment over (y) the Fixed Swap Payment. In each case, the Net Swap Payment
shall not be less than zero.
“Net
WAC
Rate”: For any Distribution Date with respect to the Group I Certificates, a per
annum rate equal to the product of (x) the weighted average of the Adjusted
Net
Mortgage Rates of the Group I Mortgage Loans, weighted based on their
outstanding Principal Balances as of the first day of the calendar month
preceding the month in which the Distribution Date occurs minus (i) an amount,
expressed as a percentage, equal to the product of (A) the Net Swap Payment,
if
any, paid by the Trust for such Distribution Date divided by the aggregate
Stated Principal Balance of the Mortgage Loans and (B) 12 and (ii) an amount,
expressed as a percentage, equal to the product of (A) the Swap Termination
Payment, if any, due from the Trust (other than any Swap Termination Payment
resulting from a Swap Provider Trigger Event) for such Distribution Date,
divided by the aggregate Stated Principal Balance of the Mortgage Loans and
(B)
12, and (y) a fraction, the numerator of which is 30 and the denominator
of
which is the actual number of days elapsed in the related Accrual Period.
With
respect to any Distribution Date and the REMIC III Regular Interests the
ownership of which is represented by the Group I Certificates, the weighted
average (adjusted for the actual number of days elapsed in the related Accrual
Period) of the REMIC II Remittance Rate on REMIC II Regular Interest II-LT1GRP,
weighted on the basis of the Uncertificated Principal Balance of such REMIC
II
Regular Interest immediately prior to such Distribution Date.
For
any
Distribution Date with respect to the Group II Certificates, a per annum
rate
equal to the product of (x) the weighted average of the Adjusted Net Mortgage
Rates of the Group II Mortgage Loans, weighted based on their outstanding
Stated
Principal Balances as of the first day of the calendar month preceding the
month
in which the Distribution Date occurs and minus (i) an amount, expressed
as a
percentage, equal to the product of (A) the Net Swap Payment, if any, paid
by
the Trust for such Distribution Date divided by the aggregate Stated Principal
Balance of the Mortgage Loans and (B) 12 and (ii) an amount, expressed as
a
percentage, equal to the product of (A) the Swap Termination Payment, if
any,
due from the Trust (other than any Swap Termination Payment resulting from
a
Swap Provider Trigger Event) for such Distribution Date, divided by the
aggregate Stated Principal Balance of the Mortgage Loans and (B) 12, and
(y) a
fraction, the numerator of which is 30 and the denominator of which is the
actual number of days elapsed in the related Accrual Period. With respect
to any
Distribution Date and the REMIC III Regular Interests the ownership of which
is
represented by the Group II Certificates, the weighted average (adjusted
for the
actual number of days elapsed in the related Accrual Period) of the REMIC
II
Remittance Rate on REMIC II Regular Interest II-LT2GRP, weighted on the basis
of
the Uncertificated Principal Balance of such REMIC II Regular Interest
immediately prior to such Distribution Date.
For
any
Distribution Date with respect to the Mezzanine Certificates, a per annum
rate
equal to the weighted average (weighted on the basis of the results of
subtracting from the aggregate Stated Principal Balance of each Loan Group
the
current aggregate Certificate Principal Balance of the related Class A
Certificates) of the Net WAC Rate for the Group I Certificates and the Net
WAC
Rate for the Group II Certificates. With respect to any Distribution Date
and
the REMIC III Regular Interests the ownership of which is represented by
the
Mezzanine Certificates, a per annum rate equal to the weighted average (adjusted
for the actual number of days elapsed in the related Accrual Period) of the
REMIC II Remittance Rates on (a) REMIC II Regular Interest II-LT1SUB, subject to
a cap and a floor equal to the REMIC II Remittance Rate on REMIC II Regular
Interest II-LT1GRP and (b) REMIC II Regular Interest II-LT2SUB, subject to
a cap
and a floor equal to the REMIC II Remittance Rate on REMIC II Regular Interest
II-LT2GRP, in each case as determined for such Distribution Date, weighted
on
the basis of the Uncertificated Principal Balance of each such REMIC II Regular
Interest immediately prior to such Distribution Date.
“Net
WAC
Rate Carryover Amount”: With respect to the Class A Certificates and the
Mezzanine Certificates and any Distribution Date, the sum of (A) the positive
excess of (i) the amount of interest accrued on such Class of Certificates
on
such Distribution Date calculated at the related Formula Rate, over (ii)
the
amount of interest accrued on such Class of Certificates at the Net WAC Rate
for
such Distribution Date and (B) the Net WAC Rate Carryover Amount for the
previous Distribution Date not previously paid, together with interest thereon
at a rate equal to the Formula Rate for such Class of Certificates for such
Distribution Date and for such Accrual Period.
“Net
WAC
Rate Carryover Reserve Account”: The account established and maintained pursuant
to Section 4.07.
“New
Lease”: Any lease of REO Property entered into on behalf of REMIC I, including
any lease renewed or extended on behalf of REMIC I, if REMIC I has the right
to
renegotiate the terms of such lease.
“NIMS
Insurer”: Any insurer that is guaranteeing certain payments under notes secured
by collateral which includes all or a portion of the Class CE Certificates,
the
Class P Certificates, the Class R Certificates and/or the Class R-X
Certificates.
“Nonrecoverable
Advance”: Any Advance previously made or proposed to be made in respect of a
Mortgage Loan or REO Property that, in the case of the Servicer or the Master
Servicer, in accordance with its good faith business judgment, as applicable,
will not or, in the case of a proposed Advance, would not be ultimately
recoverable from related Late Collections, Insurance Proceeds or Liquidation
Proceeds on such Mortgage Loan or REO Property as provided herein.
“Nonrecoverable
Servicing Advance”: Any Servicing Advance previously made or proposed to be made
in respect of a Mortgage Loan or REO Property that, in the good faith business
judgment of the Servicer, will not or, in the case of a proposed Servicing
Advance, would not be ultimately recoverable from related Late Collections,
Insurance Proceeds or Liquidation Proceeds on such Mortgage Loan or REO Property
as provided herein.
“Non-United
States Person”: Any Person other than a United States Person.
“Notional
Amount”: With respect to the Class CE Interest and any Distribution Date, the
aggregate Uncertificated Balance of the REMIC II Regular Interests (other
than
REMIC II Regular Interest II-LTP) for such Distribution Date.
“Officer’s
Certificate”: A certificate signed by the Chairman of the Board, the Vice
Chairman of the Board, the President or a vice president (however denominated),
and by the Treasurer, the Secretary, or one of the assistant treasurers or
assistant secretaries of the Servicer, the Master Servicer, the Originator,
the
Seller or the Depositor, as applicable.
“One-Month
LIBOR”: With respect to the Class A Certificates, the Mezzanine Certificates,
REMIC II Regular Interest II-LTA1, REMIC II Regular Interest II-LTA2,
REMIC
II
Regular Interest II-LTA3,
REMIC
II Regular Interest II-LTA4, REMIC II Regular Interest II-LTA5, REMIC II
Regular
Interest II-LTM1, REMIC II Regular Interest II-LTM2, REMIC II Regular Interest
II-LTM3, REMIC II Regular Interest II-LTM4, REMIC II Regular Interest II-LTM5,
REMIC
II
Regular Interest II-LTM6,
REMIC
II Regular Interest II-LTM7, REMIC II Regular Interest II-LTM8, REMIC II
Regular
Interest II-LTM9, REMIC II Regular Interest II-LTM10 and REMIC II Regular
Interest II-LTM11 and any Accrual Period therefor, the rate determined by
the
Trust Administrator on the related Interest Determination Date on the basis
of
the offered rate for one-month U.S. dollar deposits, as such rate appears
on
Telerate Page 3750 as of 11:00 a.m. (London time) on such Interest Determination
Date; provided that if such rate does not appear on Telerate Page 3750, the
rate
for such date will be determined on the basis of the offered rates of the
Reference Banks for one-month U.S. dollar deposits, as of 11:00 a.m. (London
time) on such Interest Determination Date. In such event, the Trust
Administrator will request the principal London office of each of the Reference
Banks to provide a quotation of its rate. If on such Interest Determination
Date, two or more Reference Banks provide such offered quotations, One-Month
LIBOR for the related Accrual Period shall be the arithmetic mean of such
offered quotations (rounded upwards if necessary to the nearest whole multiple
of 1/16%). If on such Interest Determination Date, fewer than two Reference
Banks provide such offered quotations, One-Month LIBOR for the related Accrual
Period shall be the higher of (i) One-Month LIBOR as determined on the previous
Interest Determination Date and (ii) the Reserve Interest Rate. Notwithstanding
the foregoing, if, under the priorities described above, One-Month LIBOR
for an
Interest Determination Date would be based on One-Month LIBOR for the previous
Interest Determination Date for the third consecutive Interest Determination
Date, the Trust Administrator shall select, after consultation with the NIMS
Insurer, an alternative comparable index (over which the Trust Administrator
has
no control), used for determining one-month Eurodollar lending rates that
is
calculated and published (or otherwise made available) by an independent
party.
“Opinion
of Counsel”: A written opinion of counsel, who may, without limitation, be
salaried counsel for the Depositor, the Seller, the Servicer or the Master
Servicer, acceptable to the Trustee, if such opinion is delivered to the
Trustee, or acceptable to the Trust Administrator, if such opinion is delivered
to the Trust Administrator, except that any opinion of counsel relating to
(a)
the qualification of any Trust REMIC as a REMIC or (b) compliance with the
REMIC
Provisions must be an opinion of Independent counsel.
“Original
Mortgage Loan”: Any of the Mortgage Loans included in REMIC I as of the Closing
Date.
“Originator”:
New Century Mortgage Corporation.
“Originator
Master Agreement”:
The
Amended and Restated Master Seller’s Purchase and Warranties Agreement dated as
of December 1, 2005, between the Seller and the Originator, as amended (which
agreement has been assigned to the Depositor pursuant to the Assignment
Agreement).
“Originator
Prepayment Charge Payment Amount”: The amounts payable by the Originator in
respect of any waived Prepayment Charges pursuant to Section 3.01.
“Overcollateralization
Deficiency Amount”: With respect to any Distribution Date, the amount, if any,
by which the Overcollateralization Target Amount exceeds the Overcollateralized
Amount on such Distribution Date (after giving effect to distributions in
respect of the Principal Remittance Amount on such Distribution Date).
“Overcollateralization
Release Amount”: With respect to any Distribution Date, the lesser of (x) the
Principal Remittance Amount for such Distribution Date and (y) the Excess
Overcollateralized Amount.
“Overcollateralization
Target Amount”: With respect to any Distribution Date, (i) 1.75%
of the
Cut-off Date Principal Balance of the Mortgage Loans, (ii) on or after the
Stepdown Date provided that a Trigger Event is not in effect, the greater
of (x)
3.50% of the aggregate Stated Principal Balance of the Mortgage Loans as
of the
last day of the related Due Period (after giving effect to scheduled payments
of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period) and (y) an amount equal to approximately 0.50% of the aggregate Stated
Principal Balance of the Mortgage Loans as of the Cut-off Date, or (iii)
on or
after the Stepdown Date if a Trigger Event is in effect, the
Overcollateralization Target Amount for the immediately preceding Distribution
Date. On and after any Distribution Date following the reduction of the
aggregate Certificate Principal Balance of the Class A Certificates and the
Mezzanine Certificates to zero, the Overcollateralization Target Amount shall
be
zero.
“Overcollateralized
Amount”: For any Distribution Date, the amount equal to (i) the aggregate Stated
Principal Balance of the Mortgage Loans as of the last day of the related
Due
Period (after giving effect to scheduled payments of principal due during
the
related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period) as
of
the related Determination Date minus (ii) the aggregate Certificate Principal
Balance of the Class A Certificates, the Mezzanine Certificates and the Class
P
Certificates as of such Distribution Date after giving effect to distributions
to be made on such Distribution Date.
“Ownership
Interest”: As to any Certificate, any ownership or security interest in such
Certificate, including any interest in such Certificate as the Holder thereof
and any other interest therein, whether direct or indirect, legal or beneficial,
as owner or as pledgee.
“Pass-Through
Rate”: With respect to the Class A Certificates and the Mezzanine Certificates
and any Distribution Date, a rate per annum equal to the lesser of (i) the
related Formula Rate for such Distribution Date and (ii) the Net WAC Rate
for
such Distribution Date.
With
respect to the Class CE Interest and any Distribution Date, a rate per annum
equal to the percentage equivalent of a fraction, the numerator of which
is (x)
the sum of (i) 100% of the interest on REMIC II Regular Interest II-LTP and
(ii)
interest on the Uncertificated Balance of each REMIC II Regular Interest
listed
in clause (y) at a rate equal to the related REMIC II Remittance Rate minus
the
Marker Rate and the denominator of which is (y) the aggregate Uncertificated
Balance of REMIC II Regular Interests XX-XXXX, XX-XXX0, XX-XXX0, XX-XXX0,
XX-XXX0, XX-XXX0,
II-LTM1,
II-LTM2, II-LTM3, II-LTM4, II-LTM5, II-LTM6, II-LTM7, II-LTM8, II-LTM9,
II-LTM10, II-LTM11 and II-LTZZ.
With
respect to the Class CE Certificates, 100% of the interest distributable
to the
Class CE Interest, expressed as a per annum rate.
With
respect to the Class SWAP-IO Interest, the Class SWAP-IO Interest shall not
have
a Pass-Through Rate, but interest for such Regular Interest and each
Distribution Date shall be an amount equal to 100% of the amounts distributable
to REMIC II Regular Interest II-LTIO for such Distribution Date.
“Percentage
Interest”: With respect to any Class of Certificates (other than the Residual
Certificates), the undivided percentage ownership in such Class evidenced
by
such Certificate, expressed as a percentage, the numerator of which is the
initial Certificate Principal Balance or Notional Amount represented by such
Certificate and the denominator of which is the aggregate initial Certificate
Principal Balance or Notional Amount of all of the Certificates of such Class.
The Class A Certificates and the Mezzanine Certificates are issuable only
in
minimum Percentage Interests corresponding to minimum initial Certificate
Principal Balances of $25,000 and integral multiples of $1.00 in excess thereof.
The Class P Certificates are issuable only in Percentage Interests corresponding
to initial Certificate Principal Balances of $20 and integral multiples thereof.
The Class CE Certificates are issuable only in minimum Percentage Interests
corresponding to minimum initial Certificate Principal Balances of $10,000
and
integral multiples of $1.00 in excess thereof; provided, however, that a
single
Certificate of each such Class of Certificates may be issued having a Percentage
Interest corresponding to the remainder of the aggregate initial Certificate
Principal Balance or Notional Amount of such Class or to an otherwise authorized
denomination for such Class plus such remainder. With respect to any Residual
Certificate, the undivided percentage ownership in such Class evidenced by
such
Certificate, as set forth on the face of such Certificate. The Residual
Certificates are issuable in Percentage Interests of 20% and multiples
thereof.
“Periodic
Rate Cap”: With respect to each Adjustable-Rate Mortgage Loan and any Adjustment
Date therefor, the fixed percentage set forth in the related Mortgage Note,
which is the maximum amount by which the Mortgage Rate for such Mortgage
Loan
may increase or decrease (without regard to the Maximum Mortgage Rate or
the
Minimum Mortgage Rate) on such Adjustment Date (other than the first Adjustment
Date) from the Mortgage Rate in effect immediately prior to such Adjustment
Date.
“Permitted
Investments”: Any one or more of the following obligations or securities
acquired at a purchase price of not greater than par, regardless of whether
issued or managed by the Depositor, the Servicer, the Master Servicer, the
NIMS
Insurer, the Trustee, the Trust Administrator or any of their respective
Affiliates or for which an Affiliate of the NIMS Insurer, the Trustee or
the
Trust Administrator serves as an advisor:
(i) direct
obligations of, or obligations fully guaranteed as to timely payment of
principal and interest by, the United States or any agency or instrumentality
thereof, provided such obligations are backed by the full faith and credit
of
the United States;
(ii) (A)
demand and time deposits in, certificates of deposit of, bankers’ acceptances
issued by or federal funds sold by any depository institution or trust company
(including the Trustee or its agent acting in their respective commercial
capacities) incorporated under the laws of the United States of America or
any
state thereof and subject to supervision and examination by federal and/or
state
authorities, so long as, at the time of such investment or contractual
commitment providing for such investment, such depository institution or
trust
company (or, if the only Rating Agency is S&P, in the case of the principal
depository institution in a depository institution holding company, debt
obligations of the depository institution holding company) or its ultimate
parent has a short-term uninsured debt rating in the highest available rating
category of Xxxxx’x, Fitch and S&P and provided that each such investment
has an original maturity of no more than 365 days; and provided further that,
if
the only Rating Agency is S&P and if the depository or trust company is a
principal subsidiary of a bank holding company and the debt obligations of
such
subsidiary are not separately rated, the applicable rating shall be that
of the
bank holding company; and, provided further that, if the original maturity
of
such short-term obligations of a domestic branch of a foreign depository
institution or trust company shall exceed 30 days, the short-term rating
of such
institution shall be A-1+ in the case of S&P if S&P is the Rating
Agency; and (B) any other demand or time deposit or deposit which is fully
insured by the FDIC;
(iii) repurchase
obligations with a term not to exceed 30 days with respect to any security
described in clause (i) above and entered into with a depository institution
or
trust company (acting as principal) rated A-1+ or higher by S&P, F-1+ or
higher by Fitch and A2 or higher by Xxxxx’x, provided, however, that collateral
transferred pursuant to such repurchase obligation must be of the type described
in clause (i) above and must (A) be valued daily at current market prices
plus
accrued interest, (B) pursuant to such valuation, be equal, at all times,
to
105% of the cash transferred by the Trustee in exchange for such collateral
and
(C) be delivered to the Trustee or, if the Trustee is supplying the collateral,
an agent for the Trustee, in such a manner as to accomplish perfection of
a
security interest in the collateral by possession of certificated
securities;
(iv) securities
bearing interest or sold at a discount that are issued by any corporation
incorporated under the laws of the United States of America or any State
thereof
and that are rated by a Rating Agency in its highest long-term unsecured
rating
category at the time of such investment or contractual commitment providing
for
such investment;
(v) commercial
paper (including both non-interest-bearing discount obligations and
interest-bearing obligations payable on demand or on a specified date not
more
than 30 days after the date of acquisition thereof) that is rated by a Rating
Agency in its highest short-term unsecured debt rating available at the time
of
such investment;
(vi) units
of
money market funds, including those managed or advised by the Trust
Administrator or its Affiliates, that have been rated “AAAm” or “AAAm-G” by
S&P, “AAA” by Fitch (if so rated by Fitch) and “Aaa” by Xxxxx’x;
and
(vii) if
previously confirmed in writing to the Trustee and the Trust Administrator
and
consented to by the NIMS Insurer, any other demand, money market or time
deposit, or any other obligation, security or investment, as may be acceptable
to the Rating Agencies in writing as a permitted investment of funds backing
securities having ratings equivalent to its highest initial rating of the
Class
A Certificates;
provided,
that no instrument described hereunder shall evidence either the right to
receive (a) only interest with respect to the obligations underlying such
instrument or (b) both principal and interest payments derived from obligations
underlying such instrument and the interest and principal payments with respect
to such instrument provide a yield to maturity at par greater than 120% of
the
yield to maturity at par of the underlying obligations.
“Permitted
Transferee”: Any Transferee of a Residual Certificate other than a Disqualified
Organization or Non-United States Person.
“Person”:
Any individual, corporation, partnership, limited liability company, joint
venture, association, joint-stock company, trust, unincorporated organization
or
government or any agency or political subdivision thereof.
“Plan”:
Any employee benefit plan or certain other retirement plans and arrangements,
including individual retirement accounts and annuities, Xxxxx plans and bank
collective investment funds and insurance company general or separate accounts
in which such plans, accounts or arrangements are invested, that are subject
to
ERISA or Section 4975 of the Code.
“Prepayment
Assumption”: As defined in the Prospectus Supplement.
“Prepayment
Charge”: With respect to any Mortgage and Prepayment Period, any prepayment
premium, fee, penalty or charge payable by a Mortgagor in connection with
any
full or partial Principal Prepayment on a Mortgage Loan pursuant to the terms
of
the related Mortgage Note and any Originator Prepayment Charge Payment Amount
(other than any Servicer Prepayment Charge Payment Amount).
“Prepayment
Charge Schedule”: As of any date, the list of Prepayment Charges on the Mortgage
Loans included in REMIC I on such date, attached hereto as Schedule 2 (including
the Prepayment Charge Summary attached thereto). The Prepayment Charge Schedule
shall set forth the following information with respect to each related Mortgage
Loan:
(i) the
Mortgage Loan identifying number;
(ii) a
code
indicating the type of Prepayment Charge;
(iii) the
state
of origination of the related Mortgage Loan;
(iv) the
date
on which the first monthly payment was due on the related Mortgage
Loan;
(v) the
term
of the related Mortgage Loan; and
(vi) the
Stated Principal Balance of the related Mortgage Loan as of the Cut-off
Date.
The
Prepayment Charge Schedule shall be amended from time to time by the Depositor
in accordance with the provisions of this Agreement and a copy of such amended
Prepayment Charge Schedule shall be furnished by the Depositor to the NIMS
Insurer and the Servicer.
“Prepayment
Interest Excess”: With respect to any Distribution Date, for each Mortgage Loan
that was the subject of a Principal Prepayment in full during the portion
of the
related Prepayment Period commencing on the first day of the calendar month
in
which the Distribution Date occurs and ending on the last day of the related
Prepayment Period, an amount equal to interest (to the extent received) at
the
applicable Net Mortgage Rate on the amount of such Principal Prepayment for
the
number of days commencing on the first day of the calendar month in which
such
Distribution Date occurs and ending on the date on which such prepayment
is so
applied.
“Prepayment
Interest Shortfall”: With respect to any Distribution Date, for each Mortgage
Loan that was the subject of a voluntary Principal Prepayment in full during
the
portion of the related Prepayment Period commencing on the first day of the
related Prepayment Period and ending on the last day of the calendar month
preceding the month in which such Distribution Date occurs, an amount equal
to
interest on the Mortgage Loan at the applicable Net Mortgage Rate on the
amount
of such Principal Prepayment for the number of days commencing on the date
such
Principal Prepayment was applied and ending on the last day of the calendar
month preceding the month in which such Distribution Date occurs.
“Prepayment
Period”: With respect to any Distribution Date and any Principal Prepayment in
full, the period commencing on the 16th
day of
the calendar month preceding the calendar month in which such Distribution
Date
occurs (or, in the case of the first Distribution Date, commencing on December
1, 2006) and ending on the 15th
day of
the calendar month in which such Distribution Date occurs. With respect to
any
Distribution Date and any Principal Prepayment in part, the calendar month
preceding the month in which the Distribution Date occurs.
“Present
Value Maximum Probable Exposure”: With
respect to each Distribution
Date, the sum of each Present Value Probable Cash Flow from, and including,
such
Distribution Date to, and including, the Termination Date in such derivative
confirmation.
“Present
Value Probable Cash Flow”: With
respect to each Distribution
Date, the product of (i) the Probable Cash Flow and (ii) the Discount Factor
applicable for such Distribution Date.
“Principal
Balance”: As to any Mortgage Loan other than a Liquidated Mortgage Loan, and any
day, the related Cut-off Date Principal Balance, minus all collections credited
against the Cut-off Date Principal Balance of any such Mortgage Loan. For
purposes of this definition, a Liquidated Mortgage Loan shall be deemed to
have
a Principal Balance equal to the Principal Balance of the related Mortgage
Loan
as of the final recovery of related Liquidation Proceeds and a Principal
Balance
of zero thereafter. As to any REO Property and any day, the Principal Balance
of
the related Mortgage Loan immediately prior to such Mortgage Loan becoming
REO
Property minus any REO Principal Amortization received with respect thereto
on
or prior to such day.
“Principal
Prepayment”: Any payment of principal made by the Mortgagor on a Mortgage Loan
which is received in advance of its scheduled Due Date and which is not
accompanied by an amount of interest representing the full amount of scheduled
interest due on any Due Date in any month or months subsequent to the month
of
prepayment.
“Principal
Remittance Amount”: With respect to any Distribution Date, the sum of the
amounts set forth in clauses (i) through (iii) of the definition of Principal
Distribution Amount.
“Private
Mezzanine Certificates”: The Class M-11 Certificates.
“Probable
Cash Flow”: With
respect to each Distribution
Date, the product of (i) the Notional Balance in such derivative confirmation
for such Distribution Date, divided by 12, and (ii) the excess, if any, of
(a)
the Projected Forward Rate over (b) the cap rate, as defined in the related
derivative confirmation attached hereto as Exhibit K or the fixed rate, as
defined in the derivative confirmation attached hereto as Exhibit M, as
applicable. The Probable Cash Flow for each Distribution Date that precedes
the
Significance Percentage Calculation Date shall equal zero.
“Projected
Forward Rate”: With
respect to each Distribution
Date,
the
product of (i) One Month LIBOR (expressed as a percentage) for the related
Accrual Period made available at Bloomberg Financial Markets, L.P. ("Bloomberg")
by typing in the following keystrokes: FWCV <go>US<go>3<go>
and inputting “1” as Forwards and Intervals, and (ii) the sum of 1 and the
product of (a) a percentage volatility level, linearly interpolated based
on
"Mid USD Cap" volatility levels as obtained from Bloomberg within 15 calendar
days of such Distribution
Date
by
typing the keystrokes: TTCF <go>, 1 <go>, whose maturity date
corresponds to the Termination Date in such derivative confirmation, (b)
a
factor of 1.3, and (c) the square root of the number of days from the
Significance Percentage Calculation Date to the first day of the Accrual
Period
for each related Distribution Date divided by 360.
“Projected
Zero Factor”: With
respect to each Distribution
Date, a fraction, the numerator of which is 1 and the denominator of which
is
the sum of (i) 1 and (ii) the Projected Forward Rate divided by 12.
“Prospectus
Supplement”: That certain Prospectus Supplement dated December 8, 2006 relating
to the public offering of the Class A Certificates and the Mezzanine
Certificates (other than the Private Mezzanine Certificates).
“Purchase
Price”: With respect to any Mortgage Loan or REO Property to be purchased
pursuant to or as contemplated by Section 2.03, Section 3.16(c) or
Section 9.01, and as confirmed by an Officer’s Certificate from the
Servicer and to the Trustee an amount equal to the sum of (i) 100% of the
Stated
Principal Balance thereof as of the date of purchase (or such other price
as
provided in Section 9.01), (ii) in the case of (x) a Mortgage Loan, accrued
interest on such Stated Principal Balance at the applicable Net Mortgage
Rate in
effect from time to time from the Due Date as to which interest was last
covered
by a payment by the Mortgagor or an Advance, which payment or Advance had
as of
the date of purchase been distributed pursuant to Section 4.01, through the
end of the calendar month in which the purchase is to be effected and (y)
an REO
Property, the sum of (1) accrued interest on such Stated Principal Balance
at
the applicable Net Mortgage Rate in effect from time to time from the Due
Date
as to which interest was last covered by a payment by the Mortgagor or an
Advance by the Servicer through the end of the calendar month immediately
preceding the calendar month in which such REO Property was acquired, plus
(2)
REO Imputed Interest for such REO Property for each calendar month commencing
with the calendar month in which such REO Property was acquired and ending
with
the calendar month in which such purchase is to be effected, net of the total
of
all net rental income, Insurance Proceeds, Liquidation Proceeds and Advances
that as of the date of purchase had been distributed as or to cover REO Imputed
Interest pursuant to Section 4.01, (iii) any unreimbursed Advances and
Servicing Advances (including Nonrecoverable Advances and Nonrecoverable
Servicing Advances) and any unpaid Servicing Fees allocable to such Mortgage
Loan or REO Property, (iv) any amounts previously withdrawn from the Collection
Account pursuant to Section 3.11(a)(ix) and Section 3.16(b) or the Distribution
Account in respect of such Mortgage Loan or REO Property, and (v) in the
case of
a Mortgage Loan required to be purchased pursuant to Section 2.03, expenses
reasonably incurred or to be incurred by the Servicer, the Master Servicer,
the
NIMS Insurer, the Trust Administrator or the Trustee in respect of the breach
or
defect giving rise to the purchase obligation including any costs and damages
incurred by the Trust in connection with any violation with respect to such
loan
of any predatory or abusive lending law. With respect to the Originator and
any
Mortgage Loan or REO Property to be purchased pursuant to or as contemplated
by
Section 2.03 or 10.01, an amount equal to the amount set forth pursuant to
the terms of the related Originator Master Agreement.
“Qualified
Substitute Mortgage Loan”: A mortgage loan substituted for a Deleted Mortgage
Loan pursuant to the terms of this Agreement which must, on the date of such
substitution, (i) have an outstanding Stated Principal Balance, after
application of all scheduled payments of principal and interest due during
or
prior to the month of substitution, not in excess of, and not more than 5%
less
than, the Stated Principal Balance of the Deleted Mortgage Loan as of the
Due
Date in the calendar month during which the substitution occurs, (ii) have
a
Mortgage Rate not less than (and not more than one percentage point in excess
of) the Mortgage Rate of the Deleted Mortgage Loan, (iii) with respect to
any
Adjustable-Rate Mortgage Loan, have a Maximum Mortgage Rate not less than
the
Maximum Mortgage Rate of the Deleted Mortgage Loan, (iv) with respect to
any
Adjustable-Rate Mortgage Loan, have a Minimum Mortgage Rate not less than
the
Minimum Mortgage Rate of the Deleted Mortgage Loan, (v) with respect to any
Adjustable-Rate Mortgage Loan, have a Gross Margin equal to or greater than
the
Gross Margin of the Deleted Mortgage Loan, (vi) with respect to any
Adjustable-Rate Mortgage Loan, have a next Adjustment Date not more than
two
months later than the next Adjustment Date on the Deleted Mortgage Loan,
(vii)
have a remaining term to maturity not greater than (and not more than one
year
less than) that of the Deleted Mortgage Loan, (viii) have the same Due Date
as
the Due Date on the Deleted Mortgage Loan, (ix) have a Loan-to-Value Ratio
as of
the date of substitution equal to or lower than the Loan-to-Value Ratio of
the
Deleted Mortgage Loan as of such date, (x) have a risk grading determined
by the
Originator at least equal to the risk grading assigned on the Deleted Mortgage
Loan, (xi) have a Prepayment Charge provision at least equal to the Prepayment
Charge provision in the Deleted Mortgage Loan, (xii) [reserved] and (xiii)
conform to each representation and warranty set forth in the Assignment
Agreement applicable to the Deleted Mortgage Loan. In the event that one
or more
mortgage loans are substituted for one or more Deleted Mortgage Loans, the
amounts described in clause (i) hereof shall be determined on the basis of
aggregate principal balances, the Mortgage Rates described in clause (ii)
hereof
shall be determined on the basis of weighted average Mortgage Rates, the
terms
described in clause (vii) hereof shall be determined on the basis of weighted
average remaining term to maturity, the Loan-to-Value Ratios described in
clause
(ix) hereof shall be satisfied as to each such mortgage loan, the risk gradings
described in clause (x) hereof shall be satisfied as to each such mortgage
loan
and, except to the extent otherwise provided in this sentence, the
representations and warranties described in clause (xiii) hereof must be
satisfied as to each Qualified Substitute Mortgage Loan or in the aggregate,
as
the case may be.
“Rating
Agency” or “Rating Agencies”: Xxxxx’x and S&P or their successors. If such
agencies or their successors are no longer in existence, “Rating Agencies” shall
be such nationally recognized statistical rating agencies, or other comparable
Persons, designated by the Depositor, notice of which designation shall be
given
to the Trustee and the Master Servicer.
“Realized
Loss”: With respect to any Liquidated Mortgage Loan or any Mortgage Loan charged
off by the Servicer pursuant to this Agreement, the amount of loss realized
equal to the portion of the Stated Principal Balance remaining unpaid after
application of all Net Liquidation Proceeds in respect of such Mortgage Loan.
If
the Servicer receives Subsequent Recoveries with respect to any Mortgage
Loan,
the amount of the Realized Loss with respect to that Mortgage Loan will be
reduced to the extent such recoveries are applied to principal distributions
on
any Distribution Date.
“Record
Date”: With respect to each Distribution Date and any Book-Entry Certificate,
the Business Day immediately preceding such Distribution Date. With respect
to
each Distribution Date and any other Certificates, including any Definitive
Certificates, the last Business Day of the month immediately preceding the
month
in which such Distribution Date occurs.
“Reference
Banks”: Deutsche Bank AG, Xxxxxxx’x Bank PLC, The Tokyo Mitsubishi Bank and
National Westminster Bank PLC and their successors in interest; provided,
however, that if any of the foregoing banks are not suitable to serve as
a
Reference Bank, then any leading banks selected by the Trust Administrator
(after consultation with the NIMS Insurer) which are engaged in transactions
in
Eurodollar deposits in the international Eurocurrency market (i) with an
established place of business in London, (ii) not controlling, under the
control
of or under common control with the Depositor or any Affiliate thereof and
(iii)
which have been designated as such by the Trust Administrator.
“Refinanced
Mortgage Loan”: A Mortgage Loan the proceeds of which were not used to purchase
the related Mortgaged Property.
“Regular
Certificate”: Any Class A Certificate, Mezzanine Certificate, Class CE
Certificate or Class P Certificate.
“Regular
Interest”: A “regular interest” in a REMIC within the meaning of
Section 860G(a)(1) of the Code.
“Regulation
AB”: Subpart 229.1100 - Asset Backed Securities (Regulation AB), 17 C.F.R.
§§229.1100 - 229.1123, as such may be amended from time to time, and subject
to
such clarification and interpretation as have been provided by the Commission
in
the adopting release (Asset-Backed Securities, Securities Act Release No.
33-8518, 70 Fed. Reg. 1,506 - 1,631 (Jan. 7, 2005)) or by the staff of the
Commission, or as may be provided by the Commission or its staff from time
to
time.
“Relevant
Servicing Criteria”: The Servicing Criteria applicable to the various parties,
as set forth on Exhibit O attached hereto. For clarification purposes, multiple
parties can have responsibility for the same Relevant Servicing
Criteria.
“Relief
Act”: The Servicemembers Civil Relief Act and any similar state
laws.
“Relief
Act Interest Shortfall”: With respect to any Distribution Date and any Mortgage
Loan, any reduction in the amount of interest collectible on such Mortgage
Loan
for the most recently ended calendar month as a result of the application
of the
Relief Act or any similar state or local law.
“REMIC”:
A “real estate mortgage investment conduit” within the meaning of
Section 860D of the Code.
“REMIC
I”: The segregated pool of assets subject hereto, constituting the primary
trust
created hereby and to be administered hereunder, with respect to which a
REMIC
election is to be made, consisting of: (i) such Mortgage Loans and Prepayment
Charges as from time to time are subject to this Agreement, together with
the
Mortgage Files relating thereto, and together with all collections thereon
and
proceeds thereof; (ii) any REO Property, together with all collections thereon
and proceeds thereof; (iii) the Trustee’s rights with respect to the Mortgage
Loans under all insurance policies, required to be maintained pursuant to
this
Agreement and any proceeds thereof; (iv) the Depositor’s rights under the
Originator Master Agreement (assigned to the Depositor pursuant to the
Assignment Agreement) and (v) the Collection Account, the Distribution Account
(other than any amounts representing any Originator Prepayment Charge Payment
Amount and any Servicer Prepayment Charge Payment Amount) and any REO Account,
and such assets that are deposited therein from time to time and any investments
thereof, together with any and all income, proceeds and payments with respect
thereto. Notwithstanding the foregoing, however, REMIC I specifically excludes
the Net WAC Rate Carryover Reserve Account, the Interest Rate Swap Agreement,
the Swap Account, the Supplemental Interest Trust, any Originator Prepayment
Charge Payment Amounts, any Servicer Prepayment Charge Payment Amounts, all
payments and other collections of principal and interest due on the Mortgage
Loans on or before the Cut-off Date and all Prepayment Charges payable in
connection with Principal Prepayments made before the Cut-off Date.
“REMIC
I
Group I Regular Interests”: REMIC I Regular Interest I and REMIC I Regular
Interest I-1-A through REMIC I Regular Interest I-60-B as designated in the
Preliminary Statement hereto.
“REMIC
I
Group II Regular Interests”: REMIC I Regular Interest II and REMIC I Regular
Interest II-1-A through REMIC II Regular Interest I-60-B as designated in
the
Preliminary Statement hereto.
“REMIC
I
Regular Interest”: Any of the separate non-certificated beneficial ownership
interests in REMIC I issued hereunder and designated as a “regular interest” in
REMIC I. Each REMIC I Regular Interest shall accrue interest at the related
REMIC I Remittance Rate in effect from time to time, and shall be entitled
to
distributions of principal, subject to the terms and conditions hereof, in
an
aggregate amount equal to its initial Uncertificated Principal Balance as
set
forth in the Preliminary Statement hereto. The designations for the respective
REMIC I Regular Interests are set forth in the Preliminary Statement hereto.
“REMIC
I
Remittance Rate”: With respect to REMIC I Regular Interest I, a per annum rate
equal to the weighted average of the Adjusted Net Mortgage Rates of the Group
I
Mortgage Loans. With respect to each REMIC I Group I Regular Interest ending
with the designation “A”, a per annum rate equal to the weighted average of the
Adjusted Net Mortgage Rates of the Group I Mortgage Loans multiplied by 2,
subject to a maximum rate of 10.900%. With respect to each REMIC I Group
I
Regular Interest ending with the designation “B”, the greater of (x) a per annum
rate equal to the excess, if any, of (i) 2 multiplied by the weighted average
of
the Adjusted Net Mortgage Rates of the Group I Mortgage Loans over (ii) 10.900%
and (y) 0.00%. With respect to REMIC I Regular Interest II, a per annum rate
equal to the weighted average of the Adjusted Net Mortgage Rates of the Group
II
Mortgage Loans. With respect to each REMIC I Group II Regular Interest ending
with the designation “A”, a per annum rate equal to the weighted average of the
Adjusted Net Mortgage Rates of the Group II Mortgage Loans multiplied by
2,
subject to a maximum rate of 10.900%. With respect to each REMIC I Group
II
Regular Interest ending with the designation “B”, the greater of (x) a per annum
rate equal to the excess, if any, of (i) 2 multiplied by the weighted average
of
the Adjusted Net Mortgage Rates of the Group II Mortgage Loans over (ii)
10.900%
and (y) 0.00%.
“REMIC
II”: The segregated pool of assets consisting of all of the REMIC I Regular
Interests conveyed in trust to the Trustee, for the benefit of the REMIC
II
Certificateholders pursuant to Section 2.07, and all amounts deposited therein,
with respect to which a separate REMIC election is to be made.
“REMIC
II
Interest Loss Allocation Amount”: With respect to any Distribution Date, an
amount (subject to adjustment based on the actual number of days elapsed
in the
respective Accrual Periods for the indicated Regular Interests for such
Distribution Date) equal to (a) the product of (i) 50% of the aggregate Stated
Principal Balance of the Mortgage Loans and REO Properties then outstanding
and
(ii) the REMIC II Remittance Rate for REMIC II Regular Interest II-LTAA minus
the Marker Rate, divided by (b) 12.
“REMIC
II
Marker Allocation Percentage”: 50% of any amount payable or loss attributable
from the Mortgage Loans, which shall be allocated to the REMIC II Regular
Interests.
“REMIC
II
Overcollateralized Amount”: With respect to any date of determination, (i) 0.50%
of the aggregate Uncertificated Balance of the REMIC II Regular Interests
(other
than REMIC II Regular Interest II-LTP) minus (ii) the aggregate Uncertificated
Balance of REMIC II Regular Interest II-LTA1, REMIC II Regular Interest II-LTA2,
REMIC II Regular Interest II-LTA3, REMIC II Regular Interest II-LTA4, REMIC
II
Regular Interest II-LTA5, REMIC II Regular Interest II-LTM1, REMIC II Regular
Interest II-LTM2, REMIC II Regular Interest II-LTM3, REMIC II Regular Interest
II-LTM4, REMIC II Regular Interest II-LTM5, REMIC II Regular Interest II-LTM6,
REMIC II Regular Interest II-LTM7, REMIC II Regular Interest II-LTM8, REMIC
II
Regular Interest II-LTM9, REMIC II Regular Interest II-LTM10 and REMIC II
Regular Interest II-LTM11, in each case as of such date of
determination.
“REMIC
II
Principal Loss Allocation Amount”: With respect to any Distribution Date, an
amount equal to the product of (i) the aggregate Stated Principal Balance
of the
Mortgage Loans and REO Properties then outstanding and (ii) 1 minus a fraction,
the numerator of which is two times the aggregate Uncertificated Balance
of
REMIC II Regular Interest II-LTA1, REMIC II Regular Interest II-LTA2, REMIC
II
Regular Interest II-LTA3, REMIC II Regular Interest II-LTA4, REMIC II Regular
Interest II- LTA5, REMIC II Regular Interest II-LTM1, REMIC II Regular Interest
II-LTM2, REMIC II Regular Interest II-LTM3, REMIC II Regular Interest II-LTM4,
REMIC II Regular Interest II-LTM5, REMIC II Regular Interest II-LTM6, REMIC
II
Regular Interest II-LTM7, REMIC II Regular Interest II-LTM8, REMIC II Regular
Interest II-LTM9, REMIC II Regular Interest II-LTM10, REMIC II Regular Interest
II-LTM11 and the denominator of which is the aggregate Uncertificated Balance
of
REMIC II Regular Interest II-LTA1, REMIC II Regular Interest II-LTA2, REMIC
II
Regular Interest II-LTA3, REMIC II Regular Interest II-LTA4, REMIC II Regular
Interest II- LTA5, REMIC II Regular Interest II-LTM1, REMIC II Regular Interest
II-LTM2, REMIC II Regular Interest II-LTM3, REMIC II Regular Interest II-LTM4,
REMIC II Regular Interest II-LTM5, REMIC II Regular Interest II-LTM6, REMIC
II
Regular Interest II-LTM7, REMIC II Regular Interest II-LTM8, REMIC II Regular
Interest II-LTM9, REMIC II Regular Interest II-LTM10, REMIC II Regular Interest
II-LTM11 and REMIC II Regular Interest II-LTZZ.
“REMIC
II
Regular Interest”: Any of the separate non-certificated beneficial ownership
interests in REMIC II issued hereunder and designated as a “regular interest” in
REMIC II. Each REMIC II Regular Interest shall accrue interest at the related
REMIC II Remittance Rate in effect from time to time, and shall be entitled
to
distributions of principal, subject to the terms and conditions hereof, in
an
aggregate amount equal to its initial Uncertificated Balance as set forth
in the
Preliminary Statement hereto. The REMIC II Regular Interests are as follows:
REMIC II Regular Interest II-LTAA, REMIC II Regular Interest II-LTA1, REMIC
II
Regular Interest II-LTA2, REMIC II Regular Interest II-LTA3, REMIC II Regular
Interest II-LTA4, REMIC II Regular Interest II-LTA5, REMIC II Regular Interest
II-LTM1, REMIC II Regular Interest II-LTM2, REMIC II Regular Interest II-LTM3,
REMIC II Regular Interest II-LTM4, REMIC II Regular Interest II-LTM5, REMIC
II
Regular Interest II-LTM6, REMIC II Regular Interest II-LTM7, REMIC II Regular
Interest II-LTM8, REMIC II Regular Interest II-LTM9, REMIC II Regular Interest
II-LTM10, REMIC II Regular Interest II-LTM11, REMIC II Regular Interest II-LTP,
REMIC II Regular Interest II-LTXX, REMIC II Regular Interest II-TLZZ, REMIC
II
Regular Interest II-LTIO, REMIC II Regular Interest II-LT1GRP, REMIC II Regular
Interest II-LT1SUB, REMIC II Regular Interest II-LT2GRP and REMIC II Regular
Interest II-LT2SUB.
“REMIC
II
Remittance Rate”: With respect to REMIC II Regular Interest II-LTAA, REMIC II
Regular Interest II-LTA1, REMIC II Regular Interest II-LTA2, REMIC II Regular
Interest II-LTA3, REMIC II Regular Interest II-LTA4, REMIC II Regular Interest
II-LTA5, REMIC II Regular Interest II-LTM1, REMIC II Regular Interest II-LTM2,
REMIC II Regular Interest II-LTM3, REMIC II Regular Interest II-LTM4, REMIC
II
Regular Interest II-LTM5, REMIC II Regular Interest II-LTM6, REMIC II Regular
Interest II-LTM7, REMIC II Regular Interest II-LTM8, REMIC II Regular Interest
II-LTM9, REMIC II Regular Interest II-LTM10, REMIC II Regular Interest II-LTM11,
REMIC II Regular Interest II-LTZZ, REMIC II Regular Interest II-LTP, REMIC
II
Regular Interest II-LT1SUB, REMIC II Regular Interest II-LT2SUB and REMIC
II
Regular Interest II-LTXX, a per annum rate (but not less than zero) equal
to the
weighted average of: (w) with respect to REMIC I Regular Interest I and REMIC
I
Regular Interest II, the REMIC I Remittance Rate for each such REMIC I Regular
Interest for each such Distribution Date, (x) with respect to each REMIC
I
Regular Interest ending with the designation “B”, the weighted average of the
REMIC I Remittance Rates for such REMIC I Regular Interests, weighted on
the
basis of the Uncertificated Balances of such REMIC I Regular Interests for
each
such Distribution Date and (y) with respect to REMIC I Regular Interests
ending
with the designation “A”, for each Distribution Date listed below, the weighted
average of the rates listed below for each such REMIC I Regular Interest
listed
below, weighted on the basis of the Uncertificated Balances of each such
REMIC I
Regular Interest for each such Distribution Date:
|
Distribution
Date
|
REMIC
I Regular Interest
|
Rate
|
|
1
|
I-1-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
2
|
I-2-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-2-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate REMIC I Remittance
Rate
|
|
|
I-1-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
|
REMIC
I Remittance Rate
|
|
|
3
|
I-3-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-3-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
and I-2-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
and II-2-A
|
REMIC
I Remittance Rate
|
|
|
4
|
I-4-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-4-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-3-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-3-A
|
REMIC
I Remittance Rate
|
|
|
5
|
I-5-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-5-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-4-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-4-A
|
REMIC
I Remittance Rate
|
|
|
6
|
I-6-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-6-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-5-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-5-A
|
REMIC
I Remittance Rate
|
|
|
7
|
I-7-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-7-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-6-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-6-A
|
REMIC
I Remittance Rate
|
|
|
8
|
I-8-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-8-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-7-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-7-A
|
REMIC
I Remittance Rate
|
|
|
9
|
I-9-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-9-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-8-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-8-A
|
REMIC
I Remittance Rate
|
|
|
10
|
I-10-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-10-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-9-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-9-A
|
REMIC
I Remittance Rate
|
|
|
11
|
I-11-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-11-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-10-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-10-A
|
REMIC
I Remittance Rate
|
|
|
12
|
I-12-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-12-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-11-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-11-A
|
REMIC
I Remittance Rate
|
|
|
13
|
I-13-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-13-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-12-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-12-A
|
REMIC
I Remittance Rate
|
|
|
14
|
I-14-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-14-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-13-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-13-A
|
REMIC
I Remittance Rate
|
|
|
15
|
I-15-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-15-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-14-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-14-A
|
REMIC
I Remittance Rate
|
|
|
16
|
I-16-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-16-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-15-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-15-A
|
REMIC
I Remittance Rate
|
|
|
17
|
I-17-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-17-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-16-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-16-A
|
REMIC
I Remittance Rate
|
|
|
18
|
I-18-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-18-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-17-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-17-A
|
REMIC
I Remittance Rate
|
|
|
19
|
I-19-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-19-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-18-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-18-A
|
REMIC
I Remittance Rate
|
|
|
20
|
I-20-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-20-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-19-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-19-A
|
REMIC
I Remittance Rate
|
|
|
21
|
I-21-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-21-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-20-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-20-A
|
REMIC
I Remittance Rate
|
|
|
22
|
I-22-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-22-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-21-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-21-A
|
REMIC
I Remittance Rate
|
|
|
23
|
I-23-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-23-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-22-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-22-A
|
REMIC
I Remittance Rate
|
|
|
24
|
I-24-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-24-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-23-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-23-A
|
REMIC
I Remittance Rate
|
|
|
25
|
I-25-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-25-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-24-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-24-A
|
REMIC
I Remittance Rate
|
|
|
26
|
I-26-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-26-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-25-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-25-A
|
REMIC
I Remittance Rate
|
|
|
27
|
I-27-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-27-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-26-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-26-A
|
REMIC
I Remittance Rate
|
|
|
28
|
I-28-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-28-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-27-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-27-A
|
REMIC
I Remittance Rate
|
|
|
29
|
I-29-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-29-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-28-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-28-A
|
REMIC
I Remittance Rate
|
|
|
30
|
I-30-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-30-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-29-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-29-A
|
REMIC
I Remittance Rate
|
|
|
31
|
I-31-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-31-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-30-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-30-A
|
REMIC
I Remittance Rate
|
|
|
32
|
I-32-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-32-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-31-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-31-A
|
REMIC
I Remittance Rate
|
|
|
33
|
I-33-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-33-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-32-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-32-A
|
REMIC
I Remittance Rate
|
|
|
34
|
I-34-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-34-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-33-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-33-A
|
REMIC
I Remittance Rate
|
|
|
35
|
I-35-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-35-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-34-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-34-A
|
REMIC
I Remittance Rate
|
|
|
36
|
I-36-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-36-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-35-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-35-A
|
REMIC
I Remittance Rate
|
|
|
37
|
I-37-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-37-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-36-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-36-A
|
REMIC
I Remittance Rate
|
|
|
38
|
I-38-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-38-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-37-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-37-A
|
REMIC
I Remittance Rate
|
|
|
39
|
I-39-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-39-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-38-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-38-A
|
REMIC
I Remittance Rate
|
|
|
40
|
I-40-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-40-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-39-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-39-A
|
REMIC
I Remittance Rate
|
|
|
41
|
I-41-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-41-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-40-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-40-A
|
REMIC
I Remittance Rate
|
|
|
42
|
I-42-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-42-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-41-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-41-A
|
REMIC
I Remittance Rate
|
|
|
43
|
I-43-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-43-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-42-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-42-A
|
REMIC
I Remittance Rate
|
|
|
44
|
I-44-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-44-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-43-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-43-A
|
REMIC
I Remittance Rate
|
|
|
45
|
I-45-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-45-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-44-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-44-A
|
REMIC
I Remittance Rate
|
|
|
46
|
I-46-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-46-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-45-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-45-A
|
REMIC
I Remittance Rate
|
|
|
47
|
I-47-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-47-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-46-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-46-A
|
REMIC
I Remittance Rate
|
|
|
48
|
I-48-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-48-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-47-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-47-A
|
REMIC
I Remittance Rate
|
|
|
49
|
I-49-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-49-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-39-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-39-A
|
REMIC
I Remittance Rate
|
|
|
50
|
I-50-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-50-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-49-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-49-A
|
REMIC
I Remittance Rate
|
|
|
51
|
I-51-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-51-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-50-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-50-A
|
REMIC
I Remittance Rate
|
|
|
52
|
I-52-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-52-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-51-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-51-A
|
REMIC
I Remittance Rate
|
|
|
53
|
I-53-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-53-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-52-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-52-A
|
REMIC
I Remittance Rate
|
|
|
54
|
I-54-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-54-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-53-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-53-A
|
REMIC
I Remittance Rate
|
|
|
55
|
I-55-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-55-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-54-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-54-A
|
REMIC
I Remittance Rate
|
|
|
56
|
I-56-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-56-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-55-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-55-A
|
REMIC
I Remittance Rate
|
|
|
57
|
I-57-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-57-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-56-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-56-A
|
REMIC
I Remittance Rate
|
|
|
58
|
I-58-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-58-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-57-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-57-A
|
REMIC
I Remittance Rate
|
|
|
59
|
I-59-A
and I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-59-A
and II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-58-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-58-A
|
REMIC
I Remittance Rate
|
|
|
60
|
I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
|
I-1-A
through I-59-A
|
REMIC
I Remittance Rate
|
|
|
II-1-A
through II-59-A
|
REMIC
I Remittance Rate
|
|
|
thereafter
|
I-1-A
through I-60-A
|
REMIC
I Remittance Rate
|
|
II-1-A
through II-60-A
|
REMIC
I Remittance Rate
|
With
respect to REMIC II Regular Interest II-LT1GRP, a per annum rate (but not
less
than zero) equal to the weighted average of: (w) with respect to REMIC I
Regular
Interest I, the REMIC I Remittance Rate for each such REMIC 1 Regular Interest
for each such Distribution Date, (x) with respect to REMIC I Group I Regular
Interests ending with the designation “B”, the weighted average of the REMIC I
Remittance Rates for such REMIC I Regular Interests, weighted on the basis
of
the Uncertificated Balances of each such REMIC I Regular Interest for each
such
Distribution Date and (y) with respect to REMIC I Group I Regular Interests
ending with the designation “A”, for each Distribution Date listed below, the
weighted average of the rates listed below for such REMIC I Regular Interests
listed below, weighted on the basis of the Uncertificated Balances of each
such
REMIC I Regular Interest for each such Distribution Date:
|
Distribution
Date
|
REMIC
I Regular Interest
|
Rate
|
|
1
|
I-1-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
2
|
I-2-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
|
REMIC
I Remittance Rate
|
|
|
3
|
I-3-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
and I-2-A
|
REMIC
I Remittance Rate
|
|
|
4
|
I-4-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-3-A
|
REMIC
I Remittance Rate
|
|
|
5
|
I-5-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-4-A
|
REMIC
I Remittance Rate
|
|
|
6
|
I-6-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-5-A
|
REMIC
I Remittance Rate
|
|
|
7
|
I-7-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-6-A
|
REMIC
I Remittance Rate
|
|
|
8
|
I-8-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-7-A
|
REMIC
I Remittance Rate
|
|
|
9
|
I-9-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-8-A
|
REMIC
I Remittance Rate
|
|
|
10
|
I-10-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-9-A
|
REMIC
I Remittance Rate
|
|
|
11
|
I-11-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-10-A
|
REMIC
I Remittance Rate
|
|
|
12
|
I-12-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-11-A
|
REMIC
I Remittance Rate
|
|
|
13
|
I-13-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-12-A
|
REMIC
I Remittance Rate
|
|
|
14
|
I-14-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-13-A
|
REMIC
I Remittance Rate
|
|
|
15
|
I-15-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-14-A
|
REMIC
I Remittance Rate
|
|
|
16
|
I-16-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-15-A
|
REMIC
I Remittance Rate
|
|
|
17
|
I-17-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-16-A
|
REMIC
I Remittance Rate
|
|
|
18
|
I-18-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-17-A
|
REMIC
I Remittance Rate
|
|
|
19
|
I-19-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-18-A
|
REMIC
I Remittance Rate
|
|
|
20
|
I-20-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-19-A
|
REMIC
I Remittance Rate
|
|
|
21
|
I-21-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-20-A
|
REMIC
I Remittance Rate
|
|
|
22
|
I-22-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-21-A
|
REMIC
I Remittance Rate
|
|
|
23
|
I-23-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-22-A
|
REMIC
I Remittance Rate
|
|
|
24
|
I-24-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-23-A
|
REMIC
I Remittance Rate
|
|
|
25
|
I-25-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-24-A
|
REMIC
I Remittance Rate
|
|
|
26
|
I-26-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-25-A
|
REMIC
I Remittance Rate
|
|
|
27
|
I-27-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-26-A
|
REMIC
I Remittance Rate
|
|
|
28
|
I-28-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-27-A
|
REMIC
I Remittance Rate
|
|
|
29
|
I-29-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-28-A
|
REMIC
I Remittance Rate
|
|
|
30
|
I-30-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-29-A
|
REMIC
I Remittance Rate
|
|
|
31
|
I-31-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-30-A
|
REMIC
I Remittance Rate
|
|
|
32
|
I-32-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-31-A
|
REMIC
I Remittance Rate
|
|
|
33
|
I-33-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-32-A
|
REMIC
I Remittance Rate
|
|
|
34
|
I-34-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-33-A
|
REMIC
I Remittance Rate
|
|
|
35
|
I-35-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-34-A
|
REMIC
I Remittance Rate
|
|
|
36
|
I-36-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-35-A
|
REMIC
I Remittance Rate
|
|
|
37
|
I-37-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-36-A
|
REMIC
I Remittance Rate
|
|
|
38
|
I-38-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-37-A
|
REMIC
I Remittance Rate
|
|
|
39
|
I-39-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-38-A
|
REMIC
I Remittance Rate
|
|
|
40
|
I-40-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-39-A
|
REMIC
I Remittance Rate
|
|
|
41
|
I-41-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-40-A
|
REMIC
I Remittance Rate
|
|
|
42
|
I-42-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-41-A
|
REMIC
I Remittance Rate
|
|
|
43
|
I-43-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-42-A
|
REMIC
I Remittance Rate
|
|
|
44
|
I-44-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-43-A
|
REMIC
I Remittance Rate
|
|
|
45
|
I-45-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-44-A
|
REMIC
I Remittance Rate
|
|
|
46
|
I-46-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-45-A
|
REMIC
I Remittance Rate
|
|
|
47
|
I-47-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-46-A
|
REMIC
I Remittance Rate
|
|
|
48
|
I-48-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-47-A
|
REMIC
I Remittance Rate
|
|
|
49
|
I-49-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-48-A
|
REMIC
I Remittance Rate
|
|
|
50
|
I-50-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-49-A
|
REMIC
I Remittance Rate
|
|
|
51
|
I-51-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-50-A
|
REMIC
I Remittance Rate
|
|
|
52
|
I-52-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-51-A
|
REMIC
I Remittance Rate
|
|
|
53
|
I-53-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-52-A
|
REMIC
I Remittance Rate
|
|
|
54
|
I-54-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-53-A
|
REMIC
I Remittance Rate
|
|
|
55
|
I-55-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-54-A
|
REMIC
I Remittance Rate
|
|
|
56
|
I-56-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-55-A
|
REMIC
I Remittance Rate
|
|
|
57
|
I-57-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-56-A
|
REMIC
I Remittance Rate
|
|
|
58
|
I-58-A
through I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-57-A
|
REMIC
I Remittance Rate
|
|
|
59
|
I-59-A
and I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-58-A
|
REMIC
I Remittance Rate
|
|
|
60
|
I-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
I-1-A
through I-59-A
|
REMIC
I Remittance Rate
|
|
|
thereafter
|
I-1-A
through I-60-A
|
REMIC
I Remittance Rate
|
With
respect to REMIC II Regular Interest II-LT2GRP, a per annum rate (but not
less
than zero) equal to the weighted average of: (w) with respect to REMIC I
Regular
Interest II, the REMIC I Remittance Rate for each such REMIC 1 Regular Interest
for each such Distribution Date, (x) with respect to REMIC I Group II Regular
Interests ending with the designation “B”, the weighted average of the REMIC I
Remittance Rates for such REMIC I Regular Interests, weighted on the basis
of
the Uncertificated Balances of each such REMIC I Regular Interest for each
such
Distribution Date and (y) with respect to REMIC I Group II Regular Interests
ending with the designation “A”, for each Distribution Date listed below, the
weighted average of the rates listed below for such REMIC I Regular Interests
listed below, weighted on the basis of the Uncertificated Balances of each
such
REMIC I Regular Interest for each such Distribution Date:
|
Distribution
Date
|
REMIC
I Regular Interest
|
Rate
|
|
1
|
II-1-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
2
|
II-2-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
|
REMIC
I Remittance Rate
|
|
|
3
|
II-3-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
and II-2-A
|
REMIC
I Remittance Rate
|
|
|
4
|
II-4-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-3-A
|
REMIC
I Remittance Rate
|
|
|
5
|
II-5-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-4-A
|
REMIC
I Remittance Rate
|
|
|
6
|
II-6-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-5-A
|
REMIC
I Remittance Rate
|
|
|
7
|
II-7-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-6-A
|
REMIC
I Remittance Rate
|
|
|
8
|
II-8-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-7-A
|
REMIC
I Remittance Rate
|
|
|
9
|
II-9-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-8-A
|
REMIC
I Remittance Rate
|
|
|
10
|
II-10-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-9-A
|
REMIC
I Remittance Rate
|
|
|
11
|
II-11-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-10-A
|
REMIC
I Remittance Rate
|
|
|
12
|
II-12-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-11-A
|
REMIC
I Remittance Rate
|
|
|
13
|
II-13-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-12-A
|
REMIC
I Remittance Rate
|
|
|
14
|
II-14-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-13-A
|
REMIC
I Remittance Rate
|
|
|
15
|
II-15-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-14-A
|
REMIC
I Remittance Rate
|
|
|
16
|
II-16-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-15-A
|
REMIC
I Remittance Rate
|
|
|
17
|
II-17-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-16-A
|
REMIC
I Remittance Rate
|
|
|
18
|
II-18-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-17-A
|
REMIC
I Remittance Rate
|
|
|
19
|
II-19-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-18-A
|
REMIC
I Remittance Rate
|
|
|
20
|
II-20-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-19-A
|
REMIC
I Remittance Rate
|
|
|
21
|
II-21-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-20-A
|
REMIC
I Remittance Rate
|
|
|
22
|
II-22-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-21-A
|
REMIC
I Remittance Rate
|
|
|
23
|
II-23-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-22-A
|
REMIC
I Remittance Rate
|
|
|
24
|
II-24-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-23-A
|
REMIC
I Remittance Rate
|
|
|
25
|
II-25-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-24-A
|
REMIC
I Remittance Rate
|
|
|
26
|
II-26-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-25-A
|
REMIC
I Remittance Rate
|
|
|
27
|
II-27-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-26-A
|
REMIC
I Remittance Rate
|
|
|
28
|
II-28-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-27-A
|
REMIC
I Remittance Rate
|
|
|
29
|
II-29-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-28-A
|
REMIC
I Remittance Rate
|
|
|
30
|
II-30-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-29-A
|
REMIC
I Remittance Rate
|
|
|
31
|
II-31-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-30-A
|
REMIC
I Remittance Rate
|
|
|
32
|
II-32-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-31-A
|
REMIC
I Remittance Rate
|
|
|
33
|
II-33-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-32-A
|
REMIC
I Remittance Rate
|
|
|
34
|
II-34-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-33-A
|
REMIC
I Remittance Rate
|
|
|
35
|
II-35-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-34-A
|
REMIC
I Remittance Rate
|
|
|
36
|
II-36-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-35-A
|
REMIC
I Remittance Rate
|
|
|
37
|
II-37-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-36-A
|
REMIC
I Remittance Rate
|
|
|
38
|
II-38-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-37-A
|
REMIC
I Remittance Rate
|
|
|
39
|
II-39-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-38-A
|
REMIC
I Remittance Rate
|
|
|
40
|
II-40-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-39-A
|
REMIC
I Remittance Rate
|
|
|
41
|
II-41-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-40-A
|
REMIC
I Remittance Rate
|
|
|
42
|
II-42-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-41-A
|
REMIC
I Remittance Rate
|
|
|
43
|
II-43-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-42-A
|
REMIC
I Remittance Rate
|
|
|
44
|
II-44-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-43-A
|
REMIC
I Remittance Rate
|
|
|
45
|
II-45-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-44-A
|
REMIC
I Remittance Rate
|
|
|
46
|
II-46-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-45-A
|
REMIC
I Remittance Rate
|
|
|
47
|
II-47-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-46-A
|
REMIC
I Remittance Rate
|
|
|
48
|
II-48-A
and II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-47-A
|
REMIC
I Remittance Rate
|
|
|
49
|
II-49-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-48-A
|
REMIC
I Remittance Rate
|
|
|
50
|
II-50-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-49-A
|
REMIC
I Remittance Rate
|
|
|
51
|
II-51-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-50-A
|
REMIC
I Remittance Rate
|
|
|
52
|
II-52-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-51-A
|
REMIC
I Remittance Rate
|
|
|
53
|
II-53-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-52-A
|
REMIC
I Remittance Rate
|
|
|
54
|
II-54-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-53-A
|
REMIC
I Remittance Rate
|
|
|
55
|
II-55-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-54-A
|
REMIC
I Remittance Rate
|
|
|
56
|
II-56-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-55-A
|
REMIC
I Remittance Rate
|
|
|
57
|
II-57-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-56-A
|
REMIC
I Remittance Rate
|
|
|
58
|
II-58-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-57-A
|
REMIC
I Remittance Rate
|
|
|
59
|
II-59-A
through II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-58-A
|
REMIC
I Remittance Rate
|
|
|
60
|
II-60-A
|
2
multiplied by Swap LIBOR, subject to a maximum rate of REMIC I
Remittance
Rate
|
|
II-1-A
through II-59-A
|
REMIC
I Remittance Rate
|
|
|
thereafter
|
II-1-A
through II-60-A
|
REMIC
I Remittance Rate
|
With
respect to REMIC II Regular Interest II-LTIO, and (i) the first Distribution
Date through the 60th
Distribution Date, the excess of (x) the weighted average of the Uncertificated
REMIC I Pass-Through Rates for REMIC I Regular Interests including the
designation “SWAP”, over (y) 2 multiplied by Swap LIBOR and (ii) thereafter,
0.00%.
“REMIC
II
Required Overcollateralized Amount”: 0.50% of the Overcollateralization Target
Amount.
“REMIC
II
Subordinated Balance Ratio”: The ratio among the Uncertificated Balance of each
REMIC II Regular Interest ending with the designation “SUB,” equal to the ratio
among, with respect to each such REMIC II Regular Interest, the excess of
(x)
the aggregate Stated Principal Balance of the Mortgage Loans in the related
Loan
Group over (y) the current Certificate Principal Balance of the Class A
Certificates in the related Loan Group.
“REMIC
II
Sub WAC Allocation Percentage”: 50% of any amount payable or loss attributable
from the Mortgage Loans, which shall be allocated to REMIC II Regular Interest
II-LT1SUB, REMIC II Regular Interest II-LT1GRP, REMIC II Regular Interest
II-LT2SUB, REMIC II Regular Interest II-LT2GRP and REMIC II Regular Interest
II-LTXX.
“REMIC
III”: The segregated pool of assets consisting of all of the REMIC II Regular
Interests conveyed in trust to the Trustee, for the benefit of the REMIC
III
Certificateholders pursuant to Section 2.07, and all amounts deposited therein,
with respect to which a separate REMIC election is to be made.
“REMIC
III Certificate”: Any Regular Certificate (other than a Class CE Certificate or
Class P Certificate) or Class R Certificate.
“REMIC
III Certificateholder”: The Holder of any REMIC III Certificate.
“REMIC
III Regular Interest”: Any Class A Certificate, Mezzanine Certificate, the Class
CE Interest, the Class P Interest or Class Swap-IO Interest.
“REMIC
IV”: The segregated pool of assets consisting of all of the Class CE Interest
conveyed in trust to the Trustee, for the benefit of the Holders of the Class
CE
Certificates and the Class R-X Certificate (in respect of the Class R-IV
Interest), pursuant to Article II hereunder, and all amounts deposited therein,
with respect to which a separate REMIC election is to be made.
“REMIC
V”: The segregated pool of assets consisting of all of the Class P Interest
conveyed in trust to the Trustee, for the benefit of the Holders of the Class
P
Certificates and the Class R-X Certificate (in respect of the Class R-V
Interest), pursuant to Article II hereunder, and all amounts deposited therein,
with respect to which a separate REMIC election is to be made.
“REMIC
VI”: The segregated pool of assets consisting of all of the Class Swap-IO
Interest conveyed in trust to the Trustee, for the benefit of the Holders
of the
REMIC VI Regular Interest SWAP-IO and the Class R-X Certificate (in respect
of
the Class R-VI Interest), pursuant to Article II hereunder, and all amounts
deposited therein, with respect to which a separate REMIC election is to
be
made.
“REMIC
Provisions”: Provisions of the federal income tax law relating to REMICs, which
appear at Section 860A through 860G of the Code, and related provisions,
and
proposed, temporary and final regulations and published rulings, notices
and
announcements promulgated thereunder, as the foregoing may be in effect from
time to time.
“REMIC
Regular Interest”: Any REMIC I Regular Interest, REMIC II Regular Interest,
REMIC III Regular Interest or REMIC VI Regular Interest SWAP-IO.
“REMIC
Remittance Rate”: The REMIC I Remittance Rate or the REMIC II Remittance
Rate.
“Remittance
Report”: A report prepared by the Servicer and delivered to the Trust
Administrator and the NIMS Insurer pursuant to Section 4.03.
“Rents
from Real Property”: With respect to any REO Property, gross income of the
character described in Section 856(d) of the Code as being included in the
term “rents from real property.”
“REO
Account”: The account or accounts maintained, or caused to be maintained, by the
Servicer in respect of an REO Property pursuant to Section 3.23.
“REO
Disposition”: The sale or other disposition of an REO Property on behalf of
REMIC I.
“REO
Imputed Interest”: As to any REO Property, for any calendar month during which
such REO Property was at any time part of REMIC I, one month’s interest at the
applicable Net Mortgage Rate on the Stated Principal Balance of such REO
Property (or, in the case of the first such calendar month, of the related
Mortgage Loan, if appropriate) as of the close of business on the Distribution
Date in such calendar month.
“REO
Principal Amortization”: With respect to any REO Property, for any calendar
month, the excess, if any, of (a) the aggregate of all amounts received in
respect of such REO Property during such calendar month, whether in the form
of
rental income, sale proceeds (including, without limitation, that portion
of the
Termination Price paid in connection with a purchase of all of the Mortgage
Loans and REO Properties pursuant to Section 9.01 that is allocable to such
REO
Property) or otherwise, net of any portion of such amounts (i) payable pursuant
to Section 3.23(c) in respect of the proper operation, management and
maintenance of such REO Property or (ii) payable or reimbursable to the Servicer
pursuant to Section 3.23(d) for unpaid Servicing Fees in respect of the related
Mortgage Loan and unreimbursed Advances and Servicing Advances in respect
of
such REO Property or the related Mortgage Loan, over (b) the REO Imputed
Interest in respect of such REO Property for such calendar month.
“REO
Property”: A Mortgaged Property acquired by the Servicer on behalf of REMIC I
through foreclosure or deed-in-lieu of foreclosure, as described in Section
3.23.
“Reportable
Event”: The meaning set forth in Section 4.06(a)(iii).
“Request
for Release”: A request for release in such electronic or other format as shall
be mutually agreeable by the Custodian and the Servicer, in substantially
the
form of Exhibit E attached hereto or Exhibit 3 of the related Custodial
Agreement.
“Reserve
Interest Rate”: With respect to any Interest Determination Date, the rate per
annum that the Trust Administrator determines to be either (i) the arithmetic
mean (rounded upwards if necessary to the nearest whole multiple of 1/16%)
of
the one-month U.S. dollar lending rates which New York City banks selected
by
the Trust Administrator are quoting on the relevant Interest Determination
Date
to the principal London offices of leading banks in the London interbank
market
or (ii) in the event that the Trust Administrator can determine no such
arithmetic mean, the lowest one-month U.S. dollar lending rate which New
York
City banks selected by the Trust Administrator are quoting on such Interest
Determination Date to leading European banks.
“Residential
Dwelling”: Any one of the following: (i) a detached one-family dwelling, (ii) a
detached two- to four-family dwelling, (iii) a one-family dwelling unit in
a
Xxxxxx Xxx eligible condominium project, (iv) a manufactured home, or (v)
a
detached one-family dwelling in a planned unit development, none of which
is a
co-operative or mobile home.
“Residual
Certificate”: Any one of the Class R Certificates and the Class R-X
Certificates.
“Residual
Interest”: The sole class of “residual interests” in a REMIC within the meaning
of Section 860G(a)(2) of the Code.
“Responsible
Officer”: When used with respect to the Trustee or the Trust Administrator, the
Chairman or Vice Chairman of the Board of Directors or Trustees, the Chairman
or
Vice Chairman of the Executive or Standing Committee of the Board of Directors
or Trustees, the President, the Chairman of the Committee on Trust Matters,
any
vice president, any assistant vice president, the Secretary, any assistant
secretary, the Treasurer, any assistant treasurer, the Cashier, any assistant
cashier, any trust officer or assistant trust officer, the Controller and
any
assistant controller or any other officer of the Trustee or the Trust
Administrator, as applicable, customarily performing functions similar to
those
performed by any of the above designated officers, in each case, having direct
responsibility for the administration of this Agreement, and, with respect
to a
particular matter relating to this Agreement, to whom such matter is referred
because of such officer’s knowledge of and familiarity with the particular
subject.
“S&P”:
Standard & Poor’s Ratings Services, a division of The XxXxxx-Xxxx Companies,
Inc., or its successor in interest.
“Xxxxxxxx-Xxxxx
Act”: The Xxxxxxxx-Xxxxx Act of 2002 and the rules and regulations of the
Commission promulgated thereunder (including any interpretations thereof
by the
Commission’s staff).
“Xxxxxxxx-Xxxxx
Certification”: The meaning set forth in Section 4.06(a)(iv).
“Securities
Act”: The Securities Act of 1933, as amended, and the rules and regulations
thereunder.
“Seller”:
UBS Real Estate Securities Inc. or its successor in interest.
“Senior
Principal Distribution Amount”: With respect to any Distribution Date, the sum
of (i) the Group I Senior Principal Distribution Amount and (ii) the Group
II
Senior Principal Distribution Amount.
“Sequential
Class M Certificates”: The Class M-1 Certificates, the Class M-2 Certificates
and the Class M-3 Certificates.
“Sequential
Class M Principal Distribution Amount”: With respect to any Distribution Date,
the excess of (x) the sum of (i) the aggregate Certificate Principal Balance
of
the Class A Certificates (after taking into account the distribution of the
Senior Principal Distribution Amount on such Distribution Date) and (ii)
the
aggregate Certificate Principal Balance of the Sequential Class M Certificates
immediately prior to such Distribution Date over (y) the lesser of (A) the
product of (i) 74.70% and (ii) the aggregate Stated Principal Balance of
the
Mortgage Loans as of the last day of the related Due Period (after giving
effect
to scheduled payments of principal due during the related Due Period, to
the
extent received or advanced, and unscheduled collections of principal received
during the related Prepayment Period) and (B) the excess of the aggregate
Stated
Principal Balance of the Mortgage Loans as of the last day of the related
Due
Period (after giving effect to scheduled payments of principal due during
the
related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period) over
$5,158,446.69.
“Servicer”:
HomEq Servicing or any successor Servicer appointed as herein provided, each
in
its capacity as a Servicer hereunder.
“Servicer
Event of Default”: One or more of the events described in Section
7.01(a).
“Servicer
Prepayment Charge Payment Amount”: The amounts payable by the Servicer in
respect of any waived Prepayment Charges pursuant to Section 3.01.
“Servicer
Remittance Date”: With respect to any Distribution Date, the 18th
day of
the calendar month in which such Distribution Date occurs or, if such
18th
day is
not a Business Day, the Business Day immediately following.
“Servicing
Account”: The account or accounts created and maintained pursuant to Section
3.09.
“Servicing
Advances”: The reasonable “out-of-pocket” costs and expenses incurred by the
Servicer in connection with a default, delinquency or other unanticipated
event
by the Servicer in the performance of its servicing obligations, including,
but
not limited to, the cost of (i) the preservation, restoration, inspection
and
protection of a Mortgaged Property, (ii) any enforcement, administration
or
judicial proceedings, including foreclosures, in respect of a particular
Mortgage Loan, including any expenses incurred in relation to any such
proceedings that result from the Mortgage Loan being registered on the MERS
System, (iii) the management (including reasonable fees in connection therewith)
and liquidation of any REO Property, (iv) taxes, assessments, water rates,
sewer
rents and other charges which are or may become a lien upon the Mortgage
Property and (v) the performance of its obligations under Section 3.01, Section
3.09, Section 3.13, Section 3.14, Section 3.16 and Section 3.23. Servicing
Advances shall also include any reasonable “out-of-pocket” costs and expenses
(including legal fees) incurred by the Servicer in connection with executing
and
recording instruments of satisfaction, deeds of reconveyance or Assignments
of
Mortgage in connection with any foreclosure in respect of any Mortgage Loan
to
the extent not recovered from the related Mortgagor or otherwise payable
under
this Agreement. The Servicer shall not be required to make any Servicing
Advance
in respect of a Mortgage Loan or REO Property that, in the good faith business
judgment of the Servicer would not be ultimately recoverable from related
Insurance Proceeds or Liquidation Proceeds on such Mortgage Loan or REO Property
as provided herein. The Servicer shall not be required to make any Servicing
Advance that would be a Nonrecoverable Advance.
“Servicing
Criteria” means the criteria set forth in paragraph (d) of Item 1122 of
Regulation AB, as such may be amended from time to time.
“Servicing
Fee”: With respect to each Mortgage Loan, the amount of the annual fee paid to
the Servicer, which shall, for a period of one full month, be equal to
one-twelfth of the Servicing Fee Rate (without regard to the words “per annum”
in the definition thereof) multiplied by the Stated Principal Balance of
the
Mortgage Loan as of the first day of the related Due Period). Such fee shall
be
payable monthly, computed on the basis of the same principal amount and period
respecting which any related interest payment on a Mortgage Loan is received.
The obligation for payment of the Servicing Fee is limited to, and the Servicing
Fee is payable solely from, the interest portion (including recoveries with
respect to interest from Liquidation Proceeds) of such Monthly Payment collected
by the Servicer, or as otherwise provided under Section 3.11.
“Servicing
Fee Rate”: With respect to each Mortgage Loan, the rate of 0.50% per
annum.
“Servicing
Function Participant” means any Sub-Servicer or Subcontractor of a Servicer,
determined by the Servicer to be participating in the servicing function,
the
Master Servicer, the Custodian or the Trust Administrator, respectively.
For the
avoidance of doubt, the Custodian shall be considered a Servicing Function
Participant without regard to the threshold percentage set forth in instruction
2 of Item 1122 of Regulation AB,
provided,
however, the parties hereto agree that the duties and obligations of Deutsche
Bank National Trust Company, in its capacity as a Servicing Function
Participant, shall be solely governed pursuant to the terms of the Custodial
Agreement.
“Servicing
Officer”: Any employee of the Servicer involved in, or responsible for, the
administration and servicing of the Mortgage Loans, whose name appear on
a list
of Servicing Officers furnished by the Servicer to the Master Servicer, the
Trust Administrator, the Trustee and the Depositor, upon request, as such
list
may from time to time be amended. With respect to the Master Servicer, any
officer of the Master Servicer involved in or responsible for, the
administration and master servicing of the Mortgage Loans whose name appears
on
a list of master Servicing Officers furnished by the Master Servicer to the
Trustee, the Trust Administrator and the Depositor upon request, as such
list
may from time to time be amended.
“Servicing
Transfer Costs”: Shall mean all reasonable out-of-pocket costs and expenses
incurred by the Trustee or the Master Servicer in connection with the transfer
of servicing from a predecessor servicer, including, without limitation,
any
reasonable costs or expenses associated with the complete transfer of all
servicing data and the completion, correction or manipulation of such servicing
data as may be required by the Trustee, the Master Servicer to correct any
errors or insufficiencies in the servicing data or otherwise to enable the
Trustee or the Master Servicer to service the Mortgage Loans properly and
effectively.
“Significance
Percentage”: The
percentage equivalent of a fraction, the numerator of which is the highest
of
each Present Value Maximum Probable Exposure and the denominator of which
is the
aggregate Certificate Principal Balance of the Class A and Mezzanine
Certificates that are supported by the derivatives (after giving effect to
all
distributions on such Distribution
Date
in such
derivative confirmation).
“Significance
Percentage Calculation Date”: Shall mean no later than the respective
Distribution Date.
“Single
Certificate”: With respect to any Class of Certificates (other than the Class P
Certificates and the Residual Certificates), a hypothetical Certificate of
such
Class evidencing a Percentage Interest for such Class corresponding to an
initial Certificate Principal Balance of $1,000. With respect to the Class
P
Certificates and the Residual Certificates, a hypothetical Certificate of
such
Class evidencing a 100% Percentage Interest in such Class.
“Startup
Day”: With respect to each Trust REMIC, the day designated as such pursuant to
Section 10.01(b) hereof.
“Stated
Principal Balance”: With respect to any Mortgage Loan: (a) as of any date of
determination up to but not including the Distribution Date on which the
proceeds, if any, of a Liquidation Event with respect to such Mortgage Loan
would be distributed, the Cut-off Date Principal Balance of such Mortgage
Loan,
as shown in the Mortgage Loan Schedule, minus the sum of (i) the principal
portion of each Monthly Payment due on a Due Date subsequent to the Cut-off
Date, to the extent received from the Mortgagor or advanced by the Servicer
and
distributed pursuant to Section 4.01 on or before such date of
determination, (ii) all Principal Prepayments received after the Cut-off
Date,
to the extent distributed pursuant to Section 4.01 on or before such date
of determination, (iii) all Liquidation Proceeds and Insurance Proceeds applied
by the Servicer as recoveries of principal in accordance with the provisions
of
Section 3.16, to the extent distributed pursuant to Section 4.01 on or
before such date of determination, and (iv) any Realized Loss incurred with
respect thereto as a result of a Deficient Valuation made during or prior
to the
Prepayment Period for the most recent Distribution Date coinciding with or
preceding such date of determination; and (b) as of any date of determination
coinciding with or subsequent to the Distribution Date on which the proceeds,
if
any, of a Liquidation Event with respect to such Mortgage Loan would be
distributed, zero. With respect to any REO Property: (a) as of any date of
determination up to but not including the Distribution Date on which the
proceeds, if any, of a Liquidation Event with respect to such REO Property
would
be distributed, an amount (not less than zero) equal to the Stated Principal
Balance of the related Mortgage Loan as of the date on which such REO Property
was acquired on behalf of REMIC I, minus the sum of (i) if such REO Property
was
acquired before the Distribution Date in any calendar month, the principal
portion of the Monthly Payment due on the Due Date in the calendar month
of
acquisition, to the extent advanced by the Servicer and distributed pursuant
to
Section 4.01 on or before such date of determination, and (ii) the
aggregate amount of REO Principal Amortization in respect of such REO Property
for all previously ended calendar months, to the extent distributed pursuant
to
Section 4.01 on or before such date of determination; and (b) as of any
date of determination coinciding with or subsequent to the Distribution Date
on
which the proceeds, if any, of a Liquidation Event with respect to such REO
Property would be distributed, zero.
“Stepdown
Date”: The earlier to occur of (i) the first Distribution Date immediately
succeeding the Distribution Date on which the aggregate Certificate Principal
Balance of the Class A Certificates has been reduced to zero and (ii) the
later
to occur of (x) the Distribution Date occurring in January 2010 and (y) the
first Distribution Date on which the Credit Enhancement Percentage (calculated
for this purpose only after taking into account payments of principal on
the
Mortgage Loans but prior to any distributions of the Group I Principal
Distribution Amount and the Group II Principal Distribution Amount to the
holders of the certificates then entitled to distributions of principal on
such
Distribution Date) is greater than or equal to approximately 46.40%.
“Subcontractor”
means any vendor, subcontractor or other Person that is not responsible for
the
overall servicing of Mortgage Loans but performs one or more discrete functions
identified in Item 1122(d) of Regulation AB with respect to Mortgage Loans
under
the direction or authority of any Servicer (or a Sub-Servicer of any Servicer),
the Master Servicer, the Custodian or the Trust Administrator.
“Subordinate
Certificates”: The Mezzanine Certificates and the Class CE Certificates.
“Sub-Servicer”
means any Person that services Mortgage Loans on behalf of a Servicer, and
is
responsible for the performance (whether directly or through sub-servicers
or
Subcontractors) of a substantial portion of the material servicing functions
required to be performed under this Agreement, any related Servicing Agreement
or any sub-servicing agreement that are identified in Item 1122(d) of Regulation
AB.
“Sub-Servicing
Account”: An account established by a Sub-Servicer which meets the requirements
set forth in Section 3.08 and is otherwise acceptable to the
Servicer.
“Sub-Servicing
Agreement”: The written contract between the Servicer and a Sub-Servicer,
relating to servicing and administration of certain Mortgage Loans, which
meets
the requirements set forth in Section 3.02.
“Subsequent
Recoveries”: As of any Distribution Date, unexpected amounts received by the
Servicer (net of any related expenses permitted to be reimbursed to the Servicer
or the Master Servicer) specifically related to a Mortgage Loan that was
the
subject of a liquidation or an REO Disposition prior to the related Prepayment
Period that resulted in a Realized Loss.
“Substitution
Adjustment Amount”: As defined in Section 2.03(b).
“Supplemental
Interest Trust”: As defined in Section 4.08(a).
“Supplemental
Interest Trust Trustee”: Xxxxx Fargo Bank, N.A., a national banking association,
not in its individual capacity but solely in its capacity as supplemental
interest trust trustee, and any successor thereto.
“Swap
Account”: The account or accounts created and maintained pursuant to Section
4.08. The Swap Account must be an Eligible Account.
“Swap
Administration Agreement”: As defined in Section 4.08(b).
“Swap
Administrator”: Xxxxx
Fargo Bank, N.A.,
a
national banking association, or any successor in interest not in its individual
capacity but solely as swap administrator under the Swap Administration
Agreement, or any successor swap administrator appointed pursuant to the
Swap
Administration Agreement.
“Swap
Collateral Account”: Shall mean the segregated trust account created and
maintained by the Swap Custodian pursuant to Section 4.11 hereof.
“Swap
Credit Support Annex”: The credit support annex dated the closing date between
the Swap Provider and the Supplemental Interest Trust Trustee, which is annexed
to and forms part of the Interest Rate Swap Agreement.
“Swap
Custodian”: As defined in Section 4.11(b).
“Swap
Interest Shortfall Amount”: Any shortfall of interest with respect to any Class
of Certificates resulting from the application of the Net WAC Rate due to
a
discrepancy between the Uncertificated Notional Amount of the Class SWAP-IO
Interest and the scheduled notional amount pursuant to the Swap Administration
Agreement.
“Swap
LIBOR”:
A per annum rate equal to the floating rate payable by the Swap Provider
under
the Interest Rate Swap Agreement.
“Swap
Provider”: The swap provider under the Interest Rate Swap Agreement. Initially,
the Swap Provider shall be UBS AG.
“Swap
Provider Trigger Event”: A Swap Termination Payment that is triggered upon: (i)
an Event of Default under the Interest Rate Swap Agreement with respect to
which
the Swap Provider is a Defaulting Party (as defined in the Interest Rate
Swap
Agreement), (ii) a Termination Event under the Interest Rate Swap Agreement
with
respect to which the Swap Provider is the sole Affected Party (as defined
in the
Interest Rate Swap Agreement) or (iii) an Additional Termination Event under
the
Interest Rate Swap Agreement with respect to which the Swap Provider is the
sole
Affected Party (as defined in the Interest Rate Swap Agreement).
“Swap
Termination Payment”: The payment due under the Interest Rate Swap Agreement
upon the early termination of the Interest Rate Swap Agreement.
“Tax
Returns”: The federal income tax return on Internal Revenue Service Form 1066,
U.S. Real Estate Mortgage Investment Conduit Income Tax Return, including
Schedule Q thereto, Quarterly Notice to Residual Interest Holders of REMIC
Taxable Income or Net Loss Allocation, or any successor forms, to be filed
on
behalf of the Trust Fund due to the classification of portions thereof as
REMICs
under the REMIC Provisions, together with any and all other information reports
or returns that may be required to be furnished to the Certificateholders
or
filed with the Internal Revenue Service or any other governmental taxing
authority under any applicable provisions of federal, state or local tax
laws.
“Telerate
Page 3750”: The display designated as page “3750” on the Dow Xxxxx Telerate
Capital Markets Report (or such other page as may replace page 3750 on that
report for the purpose of displaying London interbank offered rates of major
banks).
“Termination
Price”: As defined in Section 9.01.
“Terminator”:
As defined in Section 9.01.
“Transaction
Xxxxxxxx XXXX 0000-XX0”: The transaction addendum to the Master Consulting
Agreement, dated as of December 28, 2006, by and between Mortgage Asset
Securitization Transactions, Inc. and the Credit Risk Manager, relating to
the
transaction contemplated by this Agreement.
“Transfer”:
Any direct or indirect transfer, sale, pledge, hypothecation, or other form
of
assignment of any Ownership Interest in a Certificate.
“Transferee”:
Any Person who is acquiring by Transfer any Ownership Interest in a
Certificate.
“Transferor”:
Any Person who is disposing by Transfer of any Ownership Interest in a
Certificate.
“Trigger
Event”: A Trigger Event is in effect with respect to any Distribution Date on or
after the Stepdown Date if:
(b) the
Delinquency Percentage exceeds 34.48% of the Credit Enhancement Percentage;
or
(c) the
aggregate amount of Realized Losses incurred since the Cut-off Date through
the
last day of the related Due Period (reduced by the aggregate amount of
Subsequent Recoveries received since the Cut-off Date through the last day
of
the related Due Period) divided by the aggregate Stated Principal Balance
of the
Mortgage Loans as of the Cut-off Date exceeds the applicable percentages
set
forth below with respect to such Distribution Date:
|
Distribution
Date Occurring In
|
Percentage
|
|
January
2009 through December 2009
|
1.45%
for the first month, plus an additional 1/12th
of
1.75% for each month thereafter
|
|
January
2010 through December 2010
|
3.20%
for the first month, plus an additional 1/12th
of
1.80% for each month thereafter
|
|
January
2011 through December 2011
|
5.00%
for the first month, plus an additional 1/12th
of
1.45% for each month thereafter
|
|
January
2012 through December 2012
|
6.45%
for the first month, plus an additional 1/12th
of
0.80% for each month thereafter
|
|
January
2013 and thereafter
|
7.25%
|
“Trust
Administrator”: Xxxxx Fargo Bank, N.A., or any successor in interest, or any
successor trust administrator appointed as herein provided.
“Trust
Fund”: Collectively, all of the assets of REMIC I, REMIC II, REMIC III, REMIC
IV, REMIC V, REMIC VI, the Net WAC Rate Carryover Reserve Account, distributions
made by the Swap Administrator under the Swap Administration Agreement to
the
Swap Account and the other assets conveyed by the Depositor to the Trustee
pursuant to Section 2.01.
“Trust
REMIC”: Any of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V and REMIC
VI.
“Trustee”:
U.S. Bank National Association, a national banking association, or its successor
in interest, or any successor trustee appointed as herein provided.
“Uncertificated
Balance”: The amount of any REMIC Regular Interest (other than REMIC II Regular
Interest II-LTIO) outstanding as of any date of determination. As of the
Closing
Date, the Uncertificated Balance of each REMIC Regular Interest (other than
REMIC II Regular Interest II-LTIO) shall equal the amount set forth in the
Preliminary Statement hereto as its initial uncertificated balance. On each
Distribution Date, the Uncertificated Balance of each REMIC Regular Interest
(other than REMIC II Regular Interest II-LTIO) shall be reduced by all
distributions of principal made on such REMIC Regular Interest on such
Distribution Date pursuant to Section 4.01 and, if and to the extent
necessary and appropriate, shall be further reduced on such Distribution
Date by
Realized Losses as provided in Section 4.04. The Uncertificated Balance of
REMIC II Regular Interest II-LTZZ shall be increased by interest deferrals
as
provided in Section 4.01(a)(1). The Uncertificated Balance of each REMIC
Regular Interest (other than REMIC II Regular Interest II-LTIO) shall never
be
less than zero. With respect to the Class CE Interest as of any date of
determination, an amount equal to the excess, if any, of (A) the then aggregate
Uncertificated Principal Balance of the REMIC II Regular Interests over (B)
the
then aggregate Certificate Principal Balances of the Class A Certificates,
Mezzanine Certificates and the Class P Interest then outstanding.
“Uncertificated
Interest”: With respect to any REMIC Regular Interest for any Distribution Date,
one month’s interest at the REMIC Remittance Rate applicable to such REMIC
Regular Interest for such Distribution Date, accrued on the Uncertificated
Balance or Uncertificated Notional Amount thereof immediately prior to such
Distribution Date. Uncertificated Interest in respect of any REMIC I Regular
Interest shall accrue on the basis of a 360-day year consisting of twelve
30-day
months. Uncertificated Interest with respect to each Distribution Date, as
to
any REMIC Regular Interest, shall be reduced by an amount equal to the sum
of
(a) the aggregate Prepayment Interest Shortfall, if any, for such Distribution
Date to the extent not covered by Compensating Interest and (b) the aggregate
amount of any Relief Act Interest Shortfall, if any allocated, in each case,
to
such REMIC Regular Interest pursuant to Section 1.02. In addition,
Uncertificated Interest with respect to each Distribution Date, as to any
REMIC
Regular Interest shall be reduced by Realized Losses, if any, allocated to
such
REMIC Regular Interest pursuant to Section 1.02 and
Section 4.04.
“Uncertificated
Notional Amount”: With respect to REMIC II Regular Interest II-LTIO and each
Distribution Date listed below, the aggregate Uncertificated Principal Balance
of the REMIC I Regular Interests ending with the designation “A” listed below:
|
Distribution
Date
|
REMIC
I Regular Interests
|
|
1
|
I-1-A
through I-60-A and II-1-A through II-60-A
|
|
2
|
I-2-A
through I-60-A and II-2-A through II-60-A
|
|
3
|
I-3-A
through I-60-A and II-3-A through II-60-A
|
|
4
|
I-4-A
through I-60-A and II-4-A through II-60-A
|
|
5
|
I-5-A
through I-60-A and II-5-A through II-60-A
|
|
6
|
I-6-A
through I-60-A and II-6-A through II-60-A
|
|
7
|
I-7-A
through I-60-A and II-7-A through II-60-A
|
|
8
|
I-8-A
through I-60-A and II-8-A through II-60-A
|
|
9
|
I-9-A
through I-60-A and II-9-A through II-60-A
|
|
10
|
I-10-A
through I-60-A and II-10-A through II-60-A
|
|
11
|
I-11-A
through I-60-A and II-11-A through II-60-A
|
|
12
|
I-12-A
through I-60-A and II-12-A through II-60-A
|
|
13
|
I-13-A
through I-60-A and II-13-A through II-60-A
|
|
14
|
I-14-A
through I-60-A and II-14-A through II-60-A
|
|
15
|
I-15-A
through I-60-A and II-15-A through II-60-A
|
|
16
|
I-16-A
through I-60-A and II-16-A through II-60-A
|
|
17
|
I-17-A
through I-60-A and II-17-A through II-60-A
|
|
18
|
I-18-A
through I-60-A and II-18-A through II-60-A
|
|
19
|
I-19-A
through I-60-A and II-19-A through II-60-A
|
|
20
|
I-20-A
through I-60-A and II-20-A through II-60-A
|
|
21
|
I-21-A
through I-60-A and II-21-A through II-60-A
|
|
22
|
I-22-A
through I-60-A and II-22-A through II-60-A
|
|
23
|
I-23-A
through I-60-A and II-23-A through II-60-A
|
|
24
|
I-24-A
through I-60-A and II-24-A through II-60-A
|
|
25
|
I-25-A
through I-60-A and II-25-A through II-60-A
|
|
26
|
I-26-A
through I-60-A and II-26-A through II-60-A
|
|
27
|
I-27-A
through I-60-A and II-27-A through II-60-A
|
|
28
|
I-28-A
through I-60-A and II-28-A through II-60-A
|
|
29
|
I-29-A
through I-60-A and II-29-A through II-60-A
|
|
30
|
I-30-A
through I-60-A and II-30-A through II-60-A
|
|
31
|
I-31-A
through I-60-A and II-31-A through II-60-A
|
|
32
|
I-32-A
through I-60-A and II-32-A through II-60-A
|
|
33
|
I-33-A
through I-60-A and II-33-A through II-60-A
|
|
34
|
I-34-A
through I-60-A and II-34-A through II-60-A
|
|
35
|
I-35-A
through I-60-A and II-35-A through II-60-A
|
|
36
|
I-36-A
through I-60-A and II-36-A through II-60-A
|
|
37
|
I-37-A
through I-60-A and II-37-A through II-60-A
|
|
38
|
I-38-A
through I-60-A and II-38-A through II-60-A
|
|
39
|
I-39-A
through I-60-A and II-39-A through II-60-A
|
|
40
|
I-40-A
through I-60-A and II-40-A through II-60-A
|
|
41
|
I-41-A
through I-60-A and II-41-A through II-60-A
|
|
42
|
I-42-A
through I-60-A and II-42-A through II-60-A
|
|
43
|
I-43-A
through I-60-A and II-43-A through II-60-A
|
|
44
|
I-44-A
through I-60-A and II-44-A through II-60-A
|
|
45
|
I-45-A
through I-60-A and II-45-A through II-60-A
|
|
46
|
I-46-A
through I-60-A and II-46-A through II-60-A
|
|
47
|
I-47-A
through I-60-A and II-47-A through II-60-A
|
|
48
|
I-48-A
through I-60-A and II-48-A through II-60-A
|
|
49
|
I-49-A
through I-60-A and II-49-A through II-60-A
|
|
50
|
I-50-A
through I-60-A and II-50-A through II-60-A
|
|
51
|
I-51-A
through I-60-A and II-51-A through II-60-A
|
|
52
|
I-52-A
through I-60-A and II-52-A through II-60-A
|
|
53
|
I-53-A
through I-60-A and II-53-A through II-60-A
|
|
54
|
I-54-A
through I-60-A and II-54-A through II-60-A
|
|
55
|
I-55-A
through I-60-A and II-55-A through II-60-A
|
|
56
|
I-56-A
through I-60-A and II-56-A through II-60-A
|
|
57
|
I-57-A
through I-60-A and II-57-A through II-60-A
|
|
58
|
I-58-A
through I-60-A and II-58-A through II-60-A
|
|
59
|
I-59-A
through I-60-A and II-59-A through II-60-A
|
|
60
|
I-60-A
and II-60-A
|
|
thereafter
|
$0.00
|
With
respect to the Class Swap-IO Interest and any Distribution Date, an amount
equal
to the Uncertificated Notional Amount of the REMIC II Regular Interest II-LTIO.
“Uninsured
Cause”: Any cause of damage to a Mortgaged Property such that the complete
restoration of such property is not fully reimbursable by the hazard insurance
policies required to be maintained pursuant to Section 3.14.
“United
States Person”: A citizen or resident of the United States, a corporation,
partnership or other entity created or organized in, or under the laws of,
the
United States, any state thereof or, the District of Columbia (except, in
the
case of a partnership, to the extent provided in regulations) provided that,
for
purposes solely of the restrictions on the transfer of Class R Certificates
and
Class R-X Certificates, no partnership or other entity treated as a partnership
for United States federal income tax purposes shall be treated as a United
States Person unless all persons that own an interest in such partnership
either
directly or through any entity that is not a corporation for United States
federal income tax purposes are required by the applicable operative agreement
to be United States Persons or an estate whose income is subject to United
States federal income tax regardless of its source, or a trust if a court
within
the United States is able to exercise primary supervision over the
administration of the trust and one or more United States persons have the
authority to control all substantial decisions of the trust. To the extent
prescribed in regulations by the Secretary of the Treasury, a trust which
was in
existence on August 20, 1996 (other than a trust treated as owned by the
grantor
under subpart E of part I of subchapter J of chapter 1 of the Code), and
which
was treated as a United States person on August 20, 1996 may elect to continue
to be treated as a United States person notwithstanding the previous sentence.
The term “United States” shall have the meaning set forth in Section 7701
of the Code.
“Unpaid
Interest Shortfall Amount”: With respect to the Class A Certificates and the
Mezzanine Certificates and (i) the first Distribution Date, zero, and (ii)
any
Distribution Date after the first Distribution Date, the amount, if any,
by
which (a) the sum of (1) the Monthly Interest Distributable Amount for such
Class for the immediately preceding Distribution Date and (2) the outstanding
Unpaid Interest Shortfall Amount, if any, for such Class for such preceding
Distribution Date exceeds (b) the aggregate amount distributed on such Class
in
respect of interest pursuant to clause (a) of this definition on such preceding
Distribution Date, plus interest on the amount of interest due but not paid
on
the Certificates of such Class on such preceding Distribution Date, to the
extent permitted by law, at the Pass-Through Rate for such Class for the
related
Accrual Period.
“Value”:
With respect to any Mortgage Loan, and the related Mortgaged Property, the
lesser of:
(i)
the
lesser of (a) the value thereof as determined by an appraisal made for the
Originator at the time of origination of the Mortgage Loan by an appraiser
who
met the minimum requirements of Xxxxxx Xxx and Xxxxxxx Mac, and (b) the value
thereof as determined by a review appraisal conducted by the Originator in
the
event any such review appraisal determines an appraised value more than 10%
lower than the value thereof, in the case of a Mortgage Loan with a
Loan-to-Value Ratio less than or equal to 80%, or more than 5% lower than
the
value thereof, in the case of a Mortgage Loan with a Loan-to-Value Ratio
greater
than 80%, as determined by the appraisal referred to in clause (i)(a) above;
and
(ii)
the
purchase price paid for the related Mortgaged Property by the Mortgagor with
the
proceeds of the Mortgage Loan; provided, however, that in the case of a
Refinanced Mortgage Loan or a Mortgage Loan originated in connection with
a
“lease option purchase” if the “lease option purchase price” was set 12 months
or more prior to origination, such value of the Mortgaged Property is based
solely upon clause (i) above.
“Voting
Rights”: The portion of the voting rights of all of the Certificates which is
allocated to any Certificate. With respect to any date of determination,
98% of
all Voting Rights will be allocated among the holders of the Class A
Certificates, the Mezzanine Certificates and the Class CE Certificates in
proportion to the then outstanding Certificate Principal Balances of their
respective Certificates, 1% of all Voting Rights will be allocated to the
holders of the Class P Certificates and 1% of all Voting Rights will be
allocated among the holders of the Residual Certificates. The Voting Rights
allocated to each Class of Certificate shall be allocated among Holders of
each
such Class in accordance with their respective Percentage Interests as of
the
most recent Record Date.
“Xxxxx
Fargo”: Xxxxx Fargo Bank, N.A.
| SECTION 1.02. |
Allocation
of Certain Interest Shortfalls.
|
For
purposes of calculating the amount of the Monthly Interest Distributable
Amount
for the Class A Certificates, the Mezzanine Certificates and the Class CE
Certificates for any Distribution Date, (1) the aggregate amount of any
Prepayment Interest Shortfalls (to the extent not covered by Compensating
Interest payments by the Servicer or the Master Servicer) and any Relief
Act
Interest Shortfall incurred in respect of the Mortgage Loans for any
Distribution Date shall be allocated first, to the Class CE Certificates
based
on, and to the extent of, one month’s interest at the then applicable respective
Pass-Through Rate on the respective Notional Amount of each such Certificate
and, thereafter, among the Class A Certificates and the Mezzanine Certificates
on a pro
rata
basis
based on, and to the extent of, one month’s interest at the then applicable
respective Pass-Through Rate on the respective Certificate Principal Balance
of
each such Certificate and (2) the aggregate amount of any Realized Losses
and
Net WAC Rate Carryover Amounts incurred for any Distribution Date shall be
allocated to the Class CE Certificates based on, and to the extent of, one
month’s interest at the then applicable respective Pass-Through Rate on the
respective Notional Amount of each such Certificate.
For
purposes of calculating the amount of Uncertificated Interest for the REMIC
I
Group I Regular Interests for any Distribution Date, the aggregate amount
of any
Prepayment Interest Shortfalls (to the extent not covered by payments by
the
Servicer pursuant to Section 3.24) and any Relief Act Interest Shortfalls
incurred in respect of Loan Group I shall be allocated first, to REMIC I
Regular
Interest I and to the REMIC I Group I Regular Interests ending with the
designation “B”, pro
rata
based
on, and to the extent of, one month’s interest at the then applicable respective
REMIC I Remittance Rates on the respective Uncertificated Balances of each
such
REMIC I Regular Interest , and then, to REMIC I Group I Regular Interests
ending
with the designation “A”, pro rata based on, and to the extent of, one month’s
interest at the then applicable respective REMIC I Remittance Rates on the
respective Uncertificated Balances of each such REMIC I Regular Interest.
For
purposes of calculating the amount of Uncertificated Interest for the REMIC
I
Group II Regular Interests for any Distribution Date, the aggregate amount
of
any Prepayment Interest Shortfalls (to the extent not covered by payments
by the
Servicer pursuant to Section 3.24) and any Relief Act Interest Shortfalls
incurred in respect of Loan Group II shall be allocated first, to REMIC I
Regular Interest II and to the REMIC I Group II Regular Interests ending
with
the designation “B”, pro
rata
based
on, and to the extent of, one month’s interest at the then applicable respective
REMIC I Remittance Rates on the respective Uncertificated Balances of each
such
REMIC I Regular Interest , and then, to REMIC I Group II Regular Interests
ending with the designation “A”, pro rata based on, and to the extent of, one
month’s interest at the then applicable respective REMIC I Remittance Rates on
the respective Uncertificated Balances of each such REMIC I Regular
Interest.
For
purposes of calculating the amount of Uncertificated Interest for the REMIC
II
Regular Interests for any Distribution Date:
(A) The
REMIC
II Marker Allocation Percentage of the aggregate amount of any Prepayment
Interest Shortfalls (to the extent not covered by payments by the Servicer
pursuant to Section 3.24) and the REMIC II Marker Allocation Percentage of
the
aggregate amount of any Relief Act Interest Shortfalls incurred in respect
of
the Mortgage Loans for any Distribution Date shall be allocated among REMIC
II
Regular Interest II-LTAA, REMIC II Regular Interest II-LTA1, REMIC II Regular
Interest II-LTA2, REMIC II Regular Interest II-LTA3, REMIC II Regular Interest
II-LTA4, REMIC II Regular Interest II-LTA5, REMIC II Regular Interest II-LTM1,
REMIC II Regular Interest II-LTM2, REMIC II Regular Interest II-LTM3, REMIC
II
Regular Interest II-LTM4, REMIC II Regular Interest II-LTM5, REMIC II Regular
Interest II-LTM6, REMIC II Regular Interest II-LTM7, REMIC II Regular Interest
II-LTM8, REMIC II Regular Interest II-LTM9, REMIC II Regular Interest II-LTM10,
REMIC II Regular Interest II-LTM11 and REMIC II Regular Interest II-LTZZ,
on a
pro
rata basis
based on, and to the extent of, one month’s interest at the then applicable
respective Pass-Through Rate on the respective Uncertificated Balance of
each
such REMIC II Regular Interest; and
(B) The
REMIC
II Sub WAC Allocation Percentage of the aggregate amount of any Prepayment
Interest Shortfalls (to the extent not covered by payments by the Servicer
pursuant to Section 3.24) and the REMIC II Sub WAC Allocation Percentage
of the
aggregate amount of any Relief Act Interest Shortfalls incurred in respect
of
the Mortgage Loans for any Distribution Date shall be allocated to
Uncertificated Interest payable to REMIC II Regular Interest II-LT1SUB, REMIC
II
Regular Interest II-LT1GRP, REMIC II Regular Interest II-LT2SUB, REMIC II
Regular Interest II-LT2GRP and REMIC II Regular Interest II-LTXX, on a
pro
rata
basis
based on, and to the extent of, one month’s interest at the then applicable
respective Pass-Through Rate on the respective Uncertificated Balance of
each
such REMIC II Regular Interest.
| SECTION 1.03. |
Rights
of the NIMS Insurer.
|
Each
of
the rights of the NIMS Insurer set forth in this Agreement shall exist so
long
as (i) the NIMS Insurer has undertaken to guarantee certain payments of notes
issued pursuant to the Indenture and (ii) the notes issued pursuant to the
Indenture remain outstanding or the NIMS Insurer is owed amounts in respect
of
its guarantee of payment on such notes; provided, however, the NIMS Insurer
shall not have any rights hereunder (except pursuant to Section 11.01 and
any rights to indemnification hereunder in the case of clause (ii) below)
so
long as (i) the NIMS Insurer has not undertaken to guarantee certain payments
of
notes issued pursuant to the Indenture or (ii) any default has occurred and
is
continuing under the insurance policy issued by the NIMS Insurer with respect
to
such notes.
ARTICLE
II
CONVEYANCE
OF MORTGAGE LOANS;
ORIGINAL
ISSUANCE OF CERTIFICATES
| SECTION 2.01. |
Conveyance
of the Mortgage Loans.
|
The
Depositor, concurrently with the execution and delivery hereof, does hereby
transfer, assign, set over and otherwise convey to the Trustee without recourse,
for the benefit of the Certificateholders, all the right, title and interest
of
the Depositor, including any security interest therein for the benefit of
the
Depositor, in and to the Mortgage Loans identified on the Mortgage Loan
Schedule, the rights of the Depositor under the Assignment Agreement, payments
made to the Trust Administrator by the Swap Administrator under the Swap
Administration Agreement and the Swap Account and all other assets included
or
to be included in REMIC I. Such assignment includes all interest and principal
received by the Depositor or the Servicer on or with respect to the Mortgage
Loans (other than payments of principal and interest due on such Mortgage
Loans
on or before the Cut-off Date). Any payments received on the Mortgage Loans
after the Cut-off Date, whether in the form of Monthly Payments, Liquidation
Proceeds, Insurance Proceeds, Principal Prepayments, Subsequent Recoveries
or
any other amounts collected on such Mortgage Loan, shall be used first to
satisfy any amounts due on such Mortgage Loan on or prior to the Cut-off
Date,
to the Person and in the amount certified by the Servicer to the Depositor
on
the Closing Date. The Depositor herewith delivers to the Trustee an executed
original Assignment Agreement.
In
connection with such transfer and assignment, the Depositor does hereby deliver
to, and deposit with, the Custodian (on behalf of the Trustee), with respect
the
related Mortgage Loans, the following documents or instruments with respect
to
each Mortgage Loan so transferred and assigned (a “Mortgage File”):
(i) the
original Mortgage Note, endorsed in blank or in the following form: “Pay to the
order of U.S. Bank National Association, as Trustee under the applicable
agreement, without recourse,” with all prior and intervening endorsements
showing a complete chain of endorsement from the Originator to the Person
so
endorsing to the Trustee;
(ii) the
original Mortgage, noting the presence of the MIN of the Mortgage Loan and
language indicating that the Mortgage Loan is a MOM Loan if the Mortgage
Loan is
a MOM Loan, with evidence of recording thereon, and the original recorded
power
of attorney, if the Mortgage was executed pursuant to a power of attorney,
with
evidence of recording thereon;
(iii) unless
the Mortgage Loan is registered on the MERS® System, an original Assignment in
blank;
(iv) the
original recorded Assignment or Assignments showing a complete chain of
assignment from the Originator to the Person assigning the Mortgage to the
Trustee (or to MERS, if the Mortgage Loan is registered on the MERS® System and
noting the presence of the MIN) as contemplated by the immediately preceding
clause (iii);
(v) the
original or copies of each assumption, modification, written assurance or
substitution agreement, if any; and
(vi) the
original lender’s title insurance policy, together with all endorsements or
riders that were issued with or subsequent to the issuance of such policy,
insuring the priority of the Mortgage as a first or second lien on the Mortgaged
Property represented therein as a fee interest vested in the Mortgagor, or
in
the event such original title policy is unavailable, a written commitment
or
uniform binder or preliminary report of title issued by the title insurance
or
escrow company.
With
respect to a maximum of 1.0% of the Mortgage Loans, by outstanding Stated
Principal Balance of the Mortgage Loans as of the Cut-off Date, if any original
Mortgage Note referred to in Section 2.01(i) above cannot be located, the
obligations of the Depositor to deliver such documents shall be deemed to
be
satisfied upon delivery to the Trustee (or the Custodian on behalf of the
Trustee) of a photocopy of such Mortgage Note, if available, with a lost
note
affidavit substantially in the form of Exhibit I attached hereto. If any
of the
original Mortgage Notes for which a lost note affidavit was delivered to
the
Trustee (or the Custodian on behalf of the Trustee) with respect to the related
Mortgage Files, is subsequently located, such original Mortgage Note shall
be
delivered to the Trustee (or the Custodian on behalf of the Trustee) within
three Business Days.
Except
with respect to any Mortgage Loan for which MERS is identified on the Mortgage
or on a properly recorded assignment of the Mortgage as the mortgagee of
record,
the Trustee (upon receipt of notice from the Custodian) shall promptly (within
sixty Business Days following the later of the Closing Date and the date
of
receipt by the Trustee or the Custodian on behalf of the Trustee of the
recording information for a Mortgage, but in no event later than ninety days
following the Closing Date) enforce the obligations of the Originator pursuant
to the terms of the Originator Master Agreement to submit or cause to be
submitted for recording, at no expense to the Trust Fund, the Trustee, the
Trust
Administrator, the Custodian, the Servicer, the Master Servicer or the
Depositor, in the appropriate public office for real property records, each
Assignment referred to in Sections 2.01(iii) and (iv) above and in connection
therewith, the Trustee (upon receipt of notice from the Custodian) shall
enforce
the obligation of the Originator pursuant to the terms of the Originator
Master
Agreement to execute each original Assignment in the following form: “U.S. Bank
National Association, as Trustee under the applicable agreement.” In the event
that any such Assignment is lost or returned unrecorded because of a defect
therein, the Trustee (upon receipt of notice from the Custodian) shall enforce
the obligation of the Originator pursuant to the Originator Master Agreement
to
promptly prepare or cause to be prepared a substitute Assignment or cure
or
cause to be cured such defect, as the case may be, and thereafter cause each
such Assignment to be duly recorded.
In
connection with the assignment of any Mortgage Loan registered on the MERS®
System, the Depositor further agrees that it will cause, within 30 Business
Days
after the Closing Date, the MERS® System to indicate that such Mortgage Loans
have been assigned by the Depositor to the Trustee in accordance with this
Agreement for the benefit of the Certificateholders by including (or deleting,
in the case of Mortgage Loans which are repurchased in accordance with this
Agreement) in such computer files (a) the code in the field which identifies
the
specific Trustee and (b) the code in the field “Pool Field” which identifies the
series of the Certificates issued in connection with such Mortgage Loans.
The
Depositor further agrees that it will not, and will not permit the Servicer
to,
and the Servicer agrees that it will not, alter the codes referenced in this
paragraph with respect to any Mortgage Loan during the term of this Agreement
unless and until such Mortgage Loan is repurchased in accordance with the
terms
of this Agreement.
If
any of
the documents referred to in Sections 2.01(ii), (iii) or (iv) has, as of
the
Closing Date, been submitted for recording but either (x) has not been returned
from the applicable public recording office or (y) has been lost or such
public
recording office has retained the original of such document, the obligations
of
the Depositor to deliver such documents shall be deemed to be satisfied upon
(1)
delivery to the Trustee (or the Custodian on behalf of the Trustee) of a
copy of
each such document certified by the Originator in the case of (x) above or
the
applicable public recording office in the case of (y) above to be a true
and
complete copy of the original that was submitted for recording and (2) if
such
copy is certified by the Originator, delivery to the Trustee (or the Custodian
on behalf of the Trustee) promptly upon receipt thereof of either the original
or a copy of such document certified by the applicable public recording office
to be a true and complete copy of the original.
If
the
original lender’s title insurance policy was not delivered pursuant to Section
2.01(vi) above, the Depositor shall deliver or cause to be delivered to the
Trustee (or the Custodian on behalf of the Trustee), promptly after receipt
thereof, the original lender’s title insurance policy with a copy thereof to the
Servicer. The Depositor shall deliver or cause to be delivered to the Trustee
(or the Custodian on behalf of the Trustee) promptly upon receipt thereof
any
other original documents constituting a part of a Mortgage File received
with
respect to any Mortgage Loan, including, but not limited to, any original
documents evidencing an assumption or modification of any Mortgage Loan with
a
copy thereof to the Servicer.
The
Depositor shall deliver or cause the Originator, the Trustee or the Custodian
on
behalf of the Trustee to deliver to the Servicer copies of all trailing
documents required to be included in the servicing file at the same time
the
originals or certified copies thereof are delivered to the Trustee or the
Custodian, such documents including but not limited to the mortgagee policy
of
title insurance and any mortgage loan documents upon return from the recording
office. The Servicer shall not be responsible for any custodian fees or other
costs incurring in obtaining such documents and the Depositor shall cause
the
Servicer to be reimbursed for any such costs it may incur in connection with
performing its obligations under this Agreement. Subject to Section 6.03(a),
the
Servicer shall have no liability as a result of an inability to service any
Mortgage Loan due to its failure to receive any documents missing from the
Mortgage File or servicing file.
All
original documents relating to the Mortgage Loans that are not delivered
to the
Trustee (or the Custodian on behalf of the Trustee) are and shall be held
by or
on behalf of the Originator, the Seller, the Depositor or the Servicer, as
the
case may be, in trust for the benefit of the Trustee on behalf of the
Certificateholders. In the event that any such original document is required
pursuant to the terms of this Section 2.01 to be a part of a Mortgage File,
such
document shall be delivered promptly to the Trustee (or the Custodian on
behalf
of the Trustee). Any such original document delivered to or held by the
Depositor that is not required pursuant to the terms of this Section to be
a
part of a Mortgage File, shall be delivered promptly to the
Servicer.
The
Depositor and the Trustee hereto understand and agree that it is not intended
that any Mortgage Loan be included in the Trust that is a “High-Cost Home Loan”
as defined by the Homeownership and Equity Protection Act of 1994 or any
other
applicable predatory or abusive lending laws.
| SECTION 2.02. |
Acceptance
of REMIC I by Trustee.
|
The
Trustee acknowledges receipt (or receipt by the Custodian on behalf of the
Trustee), subject to the provisions of Section 2.01 and subject to any
exceptions noted on the exception report described in the next paragraph
below,
of the documents referred to in Section 2.01 (other than such documents
described in Section 2.01(v)) above and all other assets included in the
definition of “REMIC I” under clauses (i), (iii), (iv) and (v) (to the extent of
amounts deposited into the Distribution Account) and declares that it holds
and
will hold such documents and the other documents delivered to it constituting
a
Mortgage File, and that it holds or will hold all such assets and such other
assets included in the definition of “REMIC I” in trust for the exclusive use
and benefit of all present and future Certificateholders.
The
Trustee (or the Custodian on behalf of the Trustee pursuant to the Custodial
Agreement) agrees, to execute and deliver to the Depositor and the NIMS Insurer
on or prior to the Closing Date an acknowledgment of receipt of the original
Mortgage Notes (with any exceptions noted), substantially in the form attached
as Exhibit C-3 hereto or the form specified in the Custodial
Agreement.
The
Trustee
(or the Custodian on behalf of the Trustee pursuant to the Custodial
Agreement)
agrees,
for the benefit of the Certificateholders and the NIMS Insurer on or prior
to
the Closing Date, to review each Mortgage File and to certify in substantially
the form attached hereto as Exhibit C-1 or
the
form specified in the Custodial Agreement (such
certification may be combined with the certification given in the preceding
paragraph) that, as to each Mortgage Loan listed in the Mortgage Loan Schedule
(other than any Mortgage Loan paid in full or any Mortgage Loan specifically
identified in the exception report annexed thereto as not being covered by
such
certification), (i) all documents constituting part of such Mortgage File
(other
than such documents described in Section 2.01(v)) required to be delivered
to it
pursuant to this Agreement are in its possession, (ii) such documents have
been
reviewed by it and appear regular on their face and relate to such Mortgage
Loan
and (iii) based on its examination and only as to the foregoing, the information
set forth in the Mortgage Loan Schedule that corresponds to items (1), (3),
(11), (12), (15) and (18) of the definition of “Mortgage Loan Schedule”
accurately reflects information set forth in the Mortgage File. It is herein
acknowledged that, in conducting such review, the Trustee (or the Custodian
on
behalf of the Trustee) is under no duty or obligation (i) to inspect, review
or
examine any such documents, instruments, certificates or other papers to
determine whether they are genuine, enforceable, or appropriate for the
represented purpose or whether they have actually been recorded or that they
are
other than what they purport to be on their face or (ii) to determine whether
any Mortgage File should include any of the documents specified in clause
(v) of
Section 2.01.
Prior
to
the first anniversary date of this Agreement, the Trustee (or the Custodian
on
behalf of the Trustee pursuant to the Custodial Agreement) shall deliver
to the
Depositor, the NIMS Insurer, the Trustee, the Servicer and the Master Servicer
a
final certification in the form annexed hereto as Exhibit C-2 or the form
specified in the Custodial Agreement evidencing the completeness of the Mortgage
Files, with any applicable exceptions noted thereon, and the Servicer shall
forward a copy thereof to any Sub-Servicer.
If
in the
process of reviewing the Mortgage Files and making or preparing, as the case
may
be, the certifications referred to above, the Trustee (or the Custodian on
behalf of the Trustee) finds any document or documents constituting a part
of a
Mortgage File to be missing or defective in any material respect, at the
conclusion of its review the Trustee (or the Custodian on behalf of the Trustee)
shall so notify the Depositor, the NIMS Insurer, the Trustee, the Servicer
and
the Master Servicer. In addition, upon the discovery by the Depositor, the
NIMS
Insurer, the Servicer or the Master Servicer of a breach of any of the
representations and warranties made by the Originator or the Seller in the
Assignment Agreement or the Originator Master Agreement in respect of any
Mortgage Loan which materially adversely affects such Mortgage Loan or the
interests of the related Certificateholders in such Mortgage Loan, the party
discovering such breach shall give prompt written notice to the other
parties.
The
Trustee (or the Custodian on behalf of the Trustee) shall, at the written
request and expense of any Certificateholder, provide a written report to
the
Trust Administrator for forwarding to such Certificateholder of all related
Mortgage Files released to the Servicer for servicing purposes.
The
Depositor and the Trustee intend that the assignment and transfer herein
contemplated constitute a sale of the Mortgage Loans, the related Mortgage
Notes
and the related documents, conveying good title thereto free and clear of
any
liens and encumbrances, from the Depositor to the Trustee in trust for the
benefit of the Certificateholders and that such property not be part of the
Depositor’s estate or property of the Depositor in the event of any insolvency
by the Depositor. In the event that such conveyance is deemed to be, or to
be
made as security for, a loan, the parties intend that the Depositor shall
be
deemed to have granted and does hereby grant to the Trustee a first priority
perfected security interest in all of the Depositor’s right, title and interest
in and to the Mortgage Loans, the related Mortgage Notes and the related
documents, and that this Agreement shall constitute a security agreement
under
applicable law.
Notwithstanding
anything to the contrary contained herein, the parties hereto acknowledge
that
the functions of the Trustee with respect to the custody, acceptance,
inspection, receipt and release of the Mortgage Files and other documentation
pursuant to Section 2.01, 2.02 and 2.03 and preparation and delivery of the
acknowledgements of receipt and the certifications required under such sections
shall be performed by the Custodian pursuant to the terms and conditions
of the
Custodial Agreement.
| SECTION 2.03. |
Repurchase
or Substitution of Mortgage Loans by the Originator or the
Seller.
|
(a) Upon
receipt of written notice from the Custodian of any materially defective
document in, or that a document is missing from, a Mortgage File or from
Depositor, the Servicer, the Master Servicer, the Trust Administrator or
the
Custodian of the breach by the Originator or the Seller of any representation,
warranty or covenant under the Assignment Agreement or the Originator Master
Agreement (including any representation, warranty or covenant regarding the
Prepayment Charge Schedule) in respect of any Mortgage Loan that materially
adversely affects the value of such Mortgage Loan or the interest therein
of the
Certificateholders, the Trustee shall promptly notify the Trust Administrator,
the Seller, the NIMS Insurer, the Originator, the Servicer and the Master
Servicer of such defect, missing document or breach and request that the
Originator or the Seller, as applicable, deliver such missing document or
cure
such defect or breach within 90 days from the date the Originator or the
Seller,
as applicable, was notified of such missing document, defect or breach, and
if
the Trustee receives written notice from the Depositor, the Servicer, the
Master
Servicer, the Trust Administrator or the Custodian that the Originator or
the
Seller, as applicable, has not delivered such missing document or cured such
defect or breach in all material respects during such period, the Trustee
shall
enforce the obligations of the Originator or the Seller, as applicable, under
the Assignment Agreement and/or Originator Master Agreement to repurchase such
Mortgage Loan from REMIC I at the Purchase Price. The Purchase Price for
the
repurchased Mortgage Loan shall be remitted to the Servicer for deposit in
the
Collection Account and the Trustee (or the Custodian on behalf of the Trustee),
upon receipt of written certification from the Servicer of such deposit,
shall
release to the Originator or Seller, as applicable, the related Mortgage
File
and the Trustee shall execute and deliver such instruments of transfer or
assignment, in each case without recourse, as the Originator or Seller, as
applicable, shall furnish to it and as shall be necessary to vest in the
Originator or Seller, as applicable, any Mortgage Loan released pursuant
hereto.
In furtherance of the foregoing, if the Originator or Seller, as applicable,
is
not a member of MERS and repurchases a Mortgage Loan which is registered
on the
MERS® System, the Originator or Seller, as applicable, at its own expense and
without any right of reimbursement, shall cause MERS to execute and deliver
an
assignment of the Mortgage in recordable form to transfer the Mortgage from
MERS
to the Originator or Seller, as applicable, and shall cause such Mortgage
to be
removed from registration on the MERS® System in accordance with MERS’ rules and
regulations. Neither the Trustee nor the Custodian shall have any further
responsibility with regard to such Mortgage File. In lieu of repurchasing
any
such Mortgage Loan as provided above and in the case of the Originator, if
so
provided in the Originator Master Agreement, the Originator or Seller, as
applicable, may cause such Mortgage Loan to be removed from REMIC I (in which
case it shall become a Deleted Mortgage Loan) and substitute one or more
Qualified Substitute Mortgage Loans in the manner and subject to the limitations
set forth in Section 2.03(b); provided, however, the Originator or Seller,
as
applicable, may not substitute a Qualified Substitute Mortgage Loan for any
Deleted Mortgage Loan that violates any predatory or abusive lending law.
It is
understood and agreed that the obligation of the Originator or Seller, as
applicable, to cure or to repurchase (or to substitute for) any Mortgage
Loan as
to which a document is missing, a material defect in a constituent document
exists or as to which such a breach has occurred and is continuing shall
constitute the sole remedy respecting such omission, defect or breach available
to the Trustee and the Certificateholders.
(b) Any
substitution of Qualified Substitute Mortgage Loans for Deleted Mortgage
Loans
made pursuant to Section 2.03(a) must be effected prior to the date which
is two years after the Startup Day for REMIC I.
As
to any
Deleted Mortgage Loan for which the Originator or Seller, as applicable,
substitutes a Qualified Substitute Mortgage Loan or Loans, such substitution
shall be effected by the
Originator
or Seller, as applicable, delivering to the Trustee (or the Custodian on
behalf
of the Trustee), for such Qualified Substitute Mortgage Loan or Loans, the
Mortgage Note, the Mortgage, the Assignment in blank or to the Trustee (or
the
Custodian on behalf of the Trustee), and such other documents and agreements,
with all necessary endorsements thereon, as are required by Section 2.01,
together with an Officers’ Certificate providing that each such Qualified
Substitute Mortgage Loan satisfies the definition thereof and specifying
the
Substitution Adjustment Amount (as described below), if any, in connection
with
such substitution. The Trustee (or the Custodian on behalf of the Trustee)
shall
acknowledge receipt for such Qualified Substitute Mortgage Loan or Loans
and,
within ten Business Days thereafter, review such documents as specified in
Section 2.02 and deliver to the Depositor, the NIMS Insurer and the Servicer,
with respect to such Qualified Substitute Mortgage Loan or Loans, a
certification substantially in the form attached hereto as Exhibit C-1, with
any
applicable exceptions noted thereon. Within one year of the date of
substitution, the Trustee (or the Custodian on behalf of the Trustee) shall
deliver to the Depositor, the NIMS Insurer and the Servicer a certification
substantially in the form of Exhibit C-2 hereto with respect to such Qualified
Substitute Mortgage Loan or Loans, with any applicable exceptions noted thereon.
Monthly Payments due with respect to Qualified Substitute Mortgage Loans
in the
month of substitution are not part of REMIC I and will be retained by the
Originator or Seller, as applicable. For the month of substitution,
distributions to Certificateholders will reflect the Monthly Payment due
on such
Deleted Mortgage Loan on or before the Due Date in the month of substitution,
and the Originator or Seller, as applicable, shall thereafter be entitled
to
retain all amounts subsequently received in respect of such Deleted Mortgage
Loan. The Depositor shall give or cause to be given written notice to the
Certificateholders and the NIMS Insurer that such substitution has taken
place,
shall amend the Mortgage Loan Schedule to reflect the removal of such Deleted
Mortgage Loan from the terms of this Agreement and the substitution of the
Qualified Substitute Mortgage Loan or Loans and shall deliver a copy of such
amended Mortgage Loan Schedule to the Master Servicer, the Trust Administrator,
the Trustee, the Custodian, the Servicer and the NIMS Insurer. Upon such
substitution, such Qualified Substitute Mortgage Loan or Loans shall constitute
part of the Mortgage Pool and shall be subject in all respects to the terms
of
this Agreement and the Assignment Agreement, including, all applicable
representations and warranties thereof included in the Originator Master
Agreement.
For
any
month in which the Originator or Seller, as applicable, substitutes one or
more
Qualified Substitute Mortgage Loans for one or more Deleted Mortgage Loans,
the
Servicer will determine the amount (the “Substitution Adjustment Amount”), if
any, by which the aggregate Purchase Price of all such Deleted Mortgage Loans
exceeds the aggregate of, as to each such Qualified Substitute Mortgage Loan,
the Stated Principal Balance thereof as of the date of substitution, together
with one month’s interest on such Stated Principal Balance at the applicable Net
Mortgage Rate, plus all outstanding Advances and Servicing Advances (including
Nonrecoverable Advances and Nonrecoverable Servicing Advances) related thereto.
On the date of such substitution, the Originator or Seller, as applicable,
will
deliver or cause to be delivered to the Servicer for deposit in the Collection
Account an amount equal to the Substitution Adjustment Amount, if any, and
the
Trustee (or the Custodian on behalf of the Trustee), upon receipt of the
related
Qualified Substitute Mortgage Loan or Loans and written notice by the Servicer
of such deposit, shall release to the Originator or Seller, as applicable,
the
related Mortgage File or Files and the Trustee shall execute and deliver
such
instruments of transfer or assignment, in each case without recourse, the
Originator or Seller, as applicable, shall deliver to it and as shall be
necessary to vest therein any Deleted Mortgage Loan released pursuant
hereto.
In
addition, the Originator or Seller, as applicable, shall obtain at its own
expense and deliver to the Trustee, the Trust Administrator and the NIMS
Insurer
an Opinion of Counsel to the effect that such substitution will not cause
(a)
any federal tax to be imposed on any Trust REMIC, 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 860G(d)(1)
of the Code, or (b) any Trust REMIC to fail to qualify as a REMIC at any
time
that any Certificate is outstanding.
(c) Upon
discovery by the Depositor, the NIMS Insurer, the Seller, the Servicer, the
Master Servicer or the Trust Administrator that any Mortgage Loan does not
constitute a “qualified mortgage” within the meaning of Section 860G(a)(3) of
the Code, the party discovering such fact shall within two Business Days
give
written notice thereof to the other parties hereto and the Trustee shall
give
written notice to the Originator or Seller, as applicable. In connection
therewith, the Originator, the Seller or the Depositor shall repurchase or,
subject to the limitations set forth in Section 2.03(b), substitute one or
more
Qualified Substitute Mortgage Loans for the affected Mortgage Loan within
90
days of the earlier of discovery or receipt of such notice with respect to
such
affected Mortgage Loan. Such repurchase or substitution shall be made by
(i) the
Originator or Seller, as applicable, if the affected Mortgage Loan’s status as a
non-qualified mortgage is or results from a breach of any representation,
warranty or covenant made by the Originator or Seller, as applicable, under
the
Assignment Agreement or the Originator Master Agreement, or (ii) the Depositor,
if the affected Mortgage Loan’s status as a non-qualified mortgage is a breach
of no representation or warranty. Any such repurchase or substitution shall
be
made in the same manner as set forth in Section 2.03(a). The Trustee shall
reconvey to the Depositor, the Originator or the Seller the Mortgage Loan
to be
released pursuant hereto in the same manner, and on the same terms and
conditions, as it would a Mortgage Loan repurchased for breach of a
representation or warranty.
| SECTION 2.04. |
Reserved.
|
| SECTION 2.05. |
Representations,
Warranties and Covenants of the Servicer and the Master
Servicer.
|
(a) The
Servicer hereby represents, warrants and covenants to the Trust Administrator,
the Master Servicer and the Trustee, for the benefit of each of the Trustee,
the
Master Servicer, the Trust Administrator, the Certificateholders and to the
Depositor that as of the Closing Date or as of such date specifically provided
herein:
(i) The
Servicer is duly organized, validly existing, and in good standing under
the
laws of the jurisdiction of its formation and has all licenses necessary
to
carry on its business as now being conducted and is licensed, qualified and
in
good standing in the states where the Mortgaged Property is located if the
laws
of such state require licensing or qualification in order to conduct business
of
the type conducted by the Servicer or to ensure the enforceability or validity
of each Mortgage Loan; the Servicer has the power and authority to execute
and
deliver this Agreement and to perform in accordance herewith; the execution,
delivery and performance of this Agreement (including all instruments of
transfer to be delivered pursuant to this Agreement) by the Servicer and
the
consummation of the transactions contemplated hereby have been duly and validly
authorized; this Agreement evidences the valid, binding and enforceable
obligation of the Servicer, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting the enforcement
of
creditors’ rights generally; and all requisite corporate action has been taken
by the Servicer to make this Agreement valid and binding upon the Servicer
in
accordance with its terms;
(ii) The
consummation of the transactions contemplated by this Agreement are in the
ordinary course of business of the Servicer and will not result in the material
breach of any term or provision of the charter or by-laws of the Servicer
or
result in the breach of any term or provision of, or conflict with or constitute
a default under or result in the acceleration of any obligation under, any
material agreement, indenture or loan or credit agreement or other instrument
to
which the Servicer or its property is subject, or result in the violation
of any
law, rule, regulation, order, judgment or decree to which the Servicer or
its
property is subject;
(iii) The
execution and delivery of this Agreement by the Servicer and the performance
and
compliance with its obligations and covenants hereunder do not require the
consent or approval of any governmental authority or, if such consent or
approval is required, it has been obtained;
(iv) This
Agreement, and all documents and instruments contemplated hereby which are
executed and delivered by the Servicer, constitute and will constitute valid,
legal and binding obligations of the Servicer, enforceable in accordance
with
their respective terms, except as the enforcement thereof may be limited
by
applicable bankruptcy laws and general principles of equity;
(v) The
Servicer does not believe, nor does it have any reason or cause to believe,
that
it cannot perform each and every covenant contained in this
Agreement;
(vi) There
is
no action, suit, proceeding or investigation pending or, to its knowledge,
threatened against the Servicer that, either individually or in the aggregate,
(A) may result in any change in the business, operations, financial condition,
properties or assets of the Servicer that might prohibit or materially and
adversely affect the performance by the Servicer of its obligations under,
or
validity or enforceability of, this Agreement, or (B) may result in any material
impairment of the right or ability of the Servicer to carry on its business
substantially as now conducted, or (C) would draw into question the validity
or
enforceability of this Agreement or of any action taken or to be taken in
connection with the obligations of the Servicer contemplated herein, or (D)
would otherwise be likely to impair materially the ability of the Servicer
to
perform under the terms of this Agreement;
(vii) No
information, certificate of an officer, statement furnished in writing or
report
delivered to the Trustee or the Trust Administrator by the Servicer in
connection with the transactions contemplated hereby contains any untrue
statement of a material fact;
(viii) The
Servicer covenants that its computer and other systems used in servicing
the
Mortgage Loans operate in a manner such that the Servicer can service the
Mortgage Loans in accordance with the terms of this Agreement;
(ix) The
Servicer will not waive any Prepayment Charge unless it is waived in accordance
with the standard set forth in Section 3.01;
(x) The
Servicer has accurately and fully reported, and will continue to accurately
and
fully report on a monthly basis, its borrower credit files to each of the
three
national credit repositories in a timely manner;
(xi) The
Servicer is a member of MERS in good standing, and will comply in all material
respects with the rules and procedures of MERS in connection with the servicing
of the Mortgage Loans that are registered with MERS; and
(xii) The
Servicer will transmit full-file credit reporting data for each Mortgage
Loan
pursuant to Xxxxxx Xxx Guide Announcement 95-19 and that for each Mortgage
Loan,
the Servicer agrees to report one of the following statuses each month as
follows: new origination, current, delinquent (30-, 60-, 90-days, etc.),
foreclosed or charged off.
It
is
understood and agreed that the representations, warranties and covenants
set
forth in this Section 2.05 shall survive delivery of the Mortgage Files to
the
Custodian on behalf of the Trustee and shall inure to the benefit of the
Trustee, the Trust Administrator, the Depositor and the Certificateholders.
Upon
discovery by any of the Depositor, the Servicer, the Trust Administrator
or the
Trustee of a breach of any of the foregoing representations, warranties and
covenants which materially and adversely affects the value of any Mortgage
Loan
or the interests therein of the Certificateholders, the party discovering
such
breach shall give prompt written notice (but in no event later than two Business
Days following such discovery) to the Trustee and the Trust Administrator.
Subject to Section 7.01(a), the obligation of the Servicer set forth in Section
2.03(c) to cure breaches shall constitute the sole remedies against the Servicer
available to the Certificateholders, the Depositor, the Trust Administrator
or
the Trustee on behalf of the Certificateholders respecting a breach of the
representations, warranties and covenants contained in this Section
2.05.
(b) The
Master Servicer hereby represents, warrants and covenants to the Trustee,
for
the benefit of each of the Trustee and the Certificateholders, and to the
Servicer and the Depositor that as of the Closing Date or as of such date
specifically provided herein:
(i) The
Master Servicer is a national banking association duly formed, validly existing
and in good standing under the laws of the United States of America and is
duly
authorized and qualified to transact any and all business contemplated by
this
Agreement to be conducted by the Master Servicer;
(ii) The
Master Servicer has the full power and authority to conduct its business
as
presently conducted by it and to execute, deliver and perform, and to enter
into
and consummate, all transactions contemplated by this Agreement. The Master
Servicer has duly authorized the execution, delivery and performance of this
Agreement, has duly executed and delivered this Agreement, and this Agreement,
assuming due authorization, execution and delivery by the Depositor and the
Trustee, constitutes a legal, valid and binding obligation of the Master
Servicer, enforceable against it in accordance with its terms except as the
enforceability thereof may be limited by bankruptcy, insolvency, reorganization
or similar laws affecting the enforcement of creditors’ rights generally and by
general principles of equity;
(iii) The
execution and delivery of this Agreement by the Master Servicer, the
consummation by the Master Servicer of any other of the transactions herein
contemplated, and the fulfillment of or compliance with the terms hereof
are in
the ordinary course of business of the Master Servicer and will not (A) result
in a breach of any term or provision of charter and by-laws of the Master
Servicer or (B) conflict with, result in a breach, violation or acceleration
of,
or result in a default under, the terms of any other material agreement or
instrument to which the Master Servicer is a party or by which it may be
bound,
or any statute, order or regulation applicable to the Master Servicer of
any
court, regulatory body, administrative agency or governmental body having
jurisdiction over the Master Servicer; and the Master Servicer is not a party
to, bound by, or in breach or violation of any indenture or other agreement
or
instrument, or subject to or in violation of any statute, order or regulation
of
any court, regulatory body, administrative agency or governmental body having
jurisdiction over it, which materially and adversely affects or, to the Master
Servicer’s knowledge, would in the future materially and adversely affect, the
ability of the Master Servicer to perform its obligations under this
Agreement;
(iv) The
Master Servicer or an Affiliate thereof is an approved seller/servicer for
Xxxxxx Mae or Xxxxxxx Mac in good standing and is a HUD approved mortgagee
pursuant to Section 203 of the National Housing Act;
(v) The
Master Servicer does not believe, nor does it have any reason or cause to
believe, that it cannot perform each and every covenant made by it and contained
in this Agreement;
(vi) No
litigation is pending against the Master Servicer that would materially and
adversely affect the execution, delivery or enforceability of this Agreement
or
the ability of the Master Servicer to perform any of its other obligations
hereunder in accordance with the terms hereof,
(vii) There
are
no actions or proceedings against, or investigations known to it of, the
Master
Servicer before any court, administrative or other tribunal (A) that might
prohibit its entering into this Agreement, (B) seeking to prevent the
consummation of the transactions contemplated by this Agreement or (C) that
might prohibit or materially and adversely affect the performance by the
Master
Servicer of its obligations under, or validity or enforceability of, this
Agreement; and
(viii) No
consent, approval, authorization or order of any court or governmental agency
or
body is required for the execution, delivery and performance by the Master
Servicer of, or compliance by the Master Servicer with, this Agreement or
the
consummation of the transactions contemplated by this Agreement, except for
such
consents, approvals, authorizations or orders, if any, that have been obtained
prior to the Closing Date.
It
is
understood and agreed that the representations, warranties and covenants
set
forth in this Section 2.05 shall survive delivery of the Mortgage Files to
the
Trust Administrator, the Trustee or the Custodian, as applicable and shall
inure
to the benefit of the Trustee, the Depositor and the Certificateholders.
Upon
discovery by any of the Depositor, the Servicer, the Master Servicer, the
NIMS
Insurer or the Trustee of a breach of any of the foregoing representations,
warranties and covenants which materially and adversely affects the value
of any
Mortgage Loan or the interests therein of the Certificateholders, the party
discovering such breach shall give prompt written notice (but in no event
later
than two Business Days following such discovery) to other parties to this
Agreement.
| SECTION 2.06. |
Conveyance
of REMIC Regular Interests and Acceptance of REMIC I, REMIC II, REMIC
III, REMIC IV, REMIC V and REMIC VI by the Trustee; Issuance of
Certificates.
|
(a) The
Depositor, concurrently with the execution and delivery hereof, does hereby
transfer, assign, set over and otherwise convey in trust to the Trustee without
recourse all the right, title and interest of the Depositor in and to the
assets
described in the definition of REMIC I for the benefit of the Holders of
the
REMIC I Regular Interests (which are uncertificated) and the Class R
Certificates (in respect of the Class R-I Interest). The Trustee acknowledges
receipt of the assets described in the definition of REMIC I and declares
that
it holds and will hold the same in trust for the exclusive use and benefit
of
the holders of the REMIC I Regular Interests and the Class R Certificates
(in
respect of the Class R-I Interest). The interests evidenced by the Class
R-I
Interest, together with the REMIC I Regular Interests, constitute the entire
beneficial ownership interest in REMIC I.
(b) The
Depositor, concurrently with the execution and delivery hereof, does hereby
transfer, assign, set over and otherwise convey in trust to the Trustee without
recourse all the right, title and interest of the Depositor in and to the
REMIC
I Regular Interests (which are uncertificated) for the benefit of the Holders
of
the REMIC II Regular Interests (which are uncertificated) and the Class R
Certificates (in respect of the Class R-II Interest). The Trustee acknowledges
receipt of the REMIC I Regular Interests and declares that it holds and will
hold the same in trust for the exclusive use and benefit of the Holders of
the
REMIC II Regular Interests and the Class R Certificates (in respect of the
Class
R-II Interest). The interests evidenced by the Class R-II Interest, together
with the REMIC II Regular Interests, constitute the entire beneficial ownership
interest in REMIC II.
(c) The
Depositor, concurrently with the execution and delivery hereof, does hereby
transfer, assign, set over and otherwise convey in trust to the Trustee without
recourse all the right, title and interest of the Depositor in and to the
REMIC
II Regular Interests (which are uncertificated) for the benefit of the Holders
of the REMIC III Regular Interests and the Class R Certificates (in respect
of
the Class R-III Interest). The Trustee acknowledges receipt of the REMIC
II
Regular Interests and declares that it holds and will hold the same in trust
for
the exclusive use and benefit of the Holders of the REMIC III Regular Interests
and the Class R Certificates (in respect of the Class R-III Interest). The
interests evidenced by the Class R-III Interest, together with the Regular
Certificates (other than the Class CE Certificates and the Class P
Certificates), the Class CE Interest and the Class P Interest and the Class
Swap-IO Interest, constitute the entire beneficial ownership interest in
REMIC
III.
(d) The
Depositor, concurrently with the execution and delivery hereof, does hereby
transfer, assign, set over and otherwise convey in trust to the Trustee without
recourse all the right, title and interest of the Depositor in and to the
Class
CE Interest (which is uncertificated) for the benefit of the Holders of the
Class CE Certificates and the Class R-X Certificates (in respect of the Class
R-IV Interest). The Trustee acknowledges receipt of the Class CE Interest
and
declares that it holds and will hold the same in trust for the exclusive
use and
benefit of the Holders of the Class CE Certificates and the Class R-X
Certificates (in respect of the Class R-IV Interest). The interests evidenced
by
the Class R-IV Interest, together with the Class CE Certificates, constitute
the
entire beneficial ownership interest in REMIC IV.
(e) The
Depositor, concurrently with the execution and delivery hereof, does hereby
transfer, assign, set over and otherwise convey in trust to the Trustee without
recourse all the right, title and interest of the Depositor in and to the
Class
P Interest (which is uncertificated) for the benefit of the Holders of the
Class
P Certificates and the Class R-X Certificates (in respect of the Class R-V
Interest). The Trustee acknowledges receipt of the Class P Interest and declares
that it holds and will hold the same in trust for the exclusive use and benefit
of the Holders of the Class P Certificates and the Class R-X Certificates
(in
respect of the Class R-V Interest). The interests evidenced by the Class
R-V
Interest, together with the Class P Certificates, constitute the entire
beneficial ownership interest in REMIC V.
(f) The
Depositor, concurrently with the execution and delivery hereof, does hereby
transfer, assign, set over and otherwise convey in trust to the Trustee without
recourse all the right, title and interest of the Depositor in and to the
Class
Swap-IO Interest (which is uncertificated) for the benefit of the Holders
of
REMIC VI Regular Interest SWAP -IO and the Class R-X Certificates (in respect
of
the Class R-VI Interest). The Trustee acknowledges receipt of the Class Swap-IO
Interest and declares that it holds and shall hold the same in trust for
the
exclusive use and benefit of the Holders of REMIC VI Regular Interest SWAP
-IO
and the Class R-X Certificates (in respect of the Class R-VI Interest). The
interests evidenced by the Class R-VI Interest, together with REMIC VI Regular
Interest SWAP-IO, constitute the entire beneficial ownership interest in
REMIC
VI.
| SECTION 2.07. |
Issuance
of Class R Certificates and Class R-X
Certificates.
|
(a) The
Trustee acknowledges the assignment to it of the REMIC I Regular Interests
and
REMIC II Regular Interests and, concurrently therewith and in exchange therefor,
pursuant to the written request of the Depositor executed by an officer of
the
Depositor, the Trustee has executed, authenticated and delivered to or upon
the
order of the Depositor, the Class R Certificates in authorized denominations.
The interests evidenced by the Class R Certificates (in respect of the Class
R-III Interest), together with the REMIC III Certificates, the Class CE
Interest, the Class P Interest and the Class Swap-IO Interest, constitute
the
entire beneficial ownership interest in REMIC III.
(b) The
Trustee acknowledges the assignment to it of the Class CE Interest, the Class
P
Interest and the Class Swap-IO Interest, concurrently therewith and in exchange
therefor, pursuant to the written request of the Depositor executed by an
officer of the Depositor, the Trustee has executed, authenticated and delivered
to or upon the order of the Depositor, the Class R-X Certificates in authorized
denominations. The interests evidenced by the Class R-X Certificates, together
with the Class CE Certificates, the Class P Certificates and the REMIC VI
Regular Interest SWAP-IO constitute the entire beneficial ownership interest
in
REMIC IV, REMIC V and REMIC VI.
| SECTION 2.08. |
Authorization
to Enter into Interest Rate Cap Agreements and Interest Rate Swap
Agreement.
|
(a) The
Trust
Administrator is hereby directed to execute and deliver each of the Interest
Rate Cap Agreements on behalf of Party B (as defined therein) and to exercise
the rights, perform the obligations, and make the representations of Party
B
thereunder, solely in its capacity as Trust Administrator on behalf of Party
B
(as defined therein) and not in its individual capacity. The Servicer, the
Depositor and the Certificateholders (by acceptance of their Certificates)
acknowledge and agree that (i) the Trust Administrator shall execute and
deliver
each of the Interest Rate Cap Agreements on behalf of Party B (as defined
therein), (ii) the Trust Administrator shall exercise the rights, perform
the
obligations, and make the representations of Party B thereunder, solely in
its
capacity as Trust Administrator on behalf of Party B, as defined therein)
and
not in its individual capacity, and (iii) the Trust Administrator shall be
entitled to exercise the rights and is obligated to perform the obligations
of
Party B under each of the Interest Rate Cap Agreements. Every provision of
this
Agreement relating to the conduct or affecting the liability of or affording
protection to the Trust Administrator shall apply to the Trust Administrator’s
execution of the Interest Rate Cap Agreements, and the performance of its
duties
and satisfaction of its obligations thereunder.
(b) The
Trust
Administrator, not in its individual capacity but solely in its separate
capacity as Supplemental Interest Trust Trustee, is hereby directed to exercise
the rights, perform the obligations, and make any representations to be
exercised, performed, or made by the Supplemental Interest Trust Trustee,
as
described herein. The Trust Administrator (in its capacity as Supplemental
Interest Trust Trustee) is hereby directed to execute and deliver the Interest
Rate Swap Agreement on behalf of Party B (as defined therein) and to exercise
the rights, perform the obligations, and make the representations of Party
B
thereunder, solely in its capacity as Supplemental Interest Trust Trustee
on
behalf of Party B (as defined therein) and not in its individual capacity.
The
Servicer, the Depositor and the Certificateholders (by acceptance of their
Certificates) acknowledge and agree that (i) the Trust Administrator (in
its
capacity as Supplemental Interest Trust Trustee) shall execute and deliver
the
Interest Rate Swap Agreement on behalf of Party B (as defined therein), (ii)
the
Trust Administrator (in its capacity as Supplemental Interest Trust Trustee)
shall exercise the rights, perform the obligations, and make the representations
of Party B thereunder, solely in its capacity as Supplemental Interest Trust
Trustee on behalf of Party B as defined therein) and not in its individual
capacity, and (iii) the Trust Administrator (in its capacity as Supplemental
Interest Trust Trustee) shall be entitled to exercise the rights and is
obligated to perform the obligations of Party B under the Interest Rate Swap
Agreement. Every provision of this Agreement relating to the conduct or
affecting the liability of or affording protection to the Trust Administrator
shall apply to the Trust Administrator’s execution (in its capacity as
Supplemental Interest Trust Trustee) of the Interest Rate Swap Agreement,
and
the performance of its duties and satisfaction of its obligations
thereunder.
ARTICLE
III
ADMINISTRATION
AND SERVICING
OF
THE
MORTGAGE LOANS
| SECTION 3.01. |
Servicer
to Act as Servicer.
|
The
Servicer shall service and administer the Mortgage Loans on behalf of the
Trust
Fund and in the best interests of and for the benefit of the Certificateholders
(as determined by the Servicer in its reasonable judgment) in accordance
with
the terms of this Agreement and the respective Mortgage Loans and, to the
extent
consistent with such terms, in the same manner in which it services and
administers similar mortgage loans for its own portfolio, giving due
consideration to customary and usual standards of practice of prudent mortgage
lenders and loan servicers administering similar mortgage loans but without
regard to:
(i) any
relationship that the Servicer, any Sub-Servicer or any Affiliate of the
Servicer or any Sub-Servicer may have with the related Mortgagor;
(ii) the
ownership or non-ownership of any Certificate by the Servicer or any Affiliate
of the Servicer;
(iii) the
Servicer’s obligation to make Advances or Servicing Advances; or
(iv) the
Servicer’s or any Sub-Servicer’s right to receive compensation for its services
hereunder or with respect to any particular transaction.
To
the
extent consistent with the foregoing, the Servicer (a) shall seek to maximize
the timely and complete recovery of principal and interest on the Mortgage
Notes
and (b) shall waive (or permit a Sub-Servicer to waive) a Prepayment Charge
only
under the following circumstances: (i) such waiver is standard and customary
in
servicing similar mortgage loans and such waiver relates to a default or
a
reasonably foreseeable default and would, in the reasonable judgment of the
Servicer, maximize recovery of total proceeds taking into account the value
of
such Prepayment Charge and the related Mortgage Loan, (ii) the collection
of
such Prepayment Charge would be in violation of applicable laws, (iii) the
amount of the Prepayment Charge set forth on the Prepayment Charge Schedule
is
not consistent with the related Mortgage Note or is otherwise unenforceable
or
(iv) the collection of such Prepayment Charge would be considered “predatory”
pursuant to written guidance published or issued by any applicable federal,
state or local regulatory authority acting in its official capacity and having
jurisdiction over such matters. If a Prepayment Charge is waived as permitted
by
meeting the standard described in clauses (ii), (iii) or (iv) above, then
the
Trustee (upon receipt of written notice from the Servicer that such waiver
has
occurred) shall enforce the obligation of the related Originator to pay the
amount of such waived Prepayment Charge to the Trust Administrator for deposit
in the Distribution Account for the benefit of the Holders of the Class P
Certificates (the “Originator Prepayment Charge Payment Amount”). If a
Prepayment Charge is waived other than in accordance with (i), (ii), (iii)
or
(iv) above, the Servicer shall pay the amount of such waived Prepayment Charge
to the Trust Administrator for deposit in the Distribution Account for the
benefit of the Holders of the Class P Certificates (the “Servicer Prepayment
Charge Payment Amount”).
To
the
extent consistent with the foregoing, the Servicer shall seek to maximize
the
timely and complete recovery of principal and interest on the Mortgage Notes.
Subject only to the above-described servicing standards and the terms of
this
Agreement and of the Mortgage Loans, the Servicer shall have full power and
authority, acting alone or through Sub-Servicers as provided in Section 3.02,
to
do or cause to be done any and all things in connection with such servicing
and
administration which it may deem necessary or desirable. Without limiting
the
generality of the foregoing, the Servicer in its own name or in the name
of a
Sub-Servicer or in the name of the Trustee, solely in its capacity as Trustee
of
the Trust, is hereby authorized and empowered by the Trustee when the Servicer
believes it appropriate in its best judgment in accordance with the servicing
standards set forth above, to execute and deliver, on behalf of the
Certificateholders and the Trustee, any and all instruments of satisfaction
or
cancellation, or of partial or full release or discharge, and all other
comparable instruments, with respect to the Mortgage Loans and the Mortgaged
Properties and to institute foreclosure proceedings or obtain a deed-in-lieu
of
foreclosure so as to convert the ownership of such properties, and to hold
or
cause to be held title to such properties, on behalf of the Trustee and
Certificateholders. The Servicer shall service and administer the Mortgage
Loans
in accordance with applicable state and federal law and shall provide to
the
Mortgagors any reports required to be provided to them thereby. The Servicer
shall also comply in the performance of this Agreement with all reasonable
rules
and requirements of each insurer under any standard hazard insurance policy.
Subject to Section 3.17, within fifteen (15) days of the Closing Date, the
Trustee shall execute, at the written request of the Servicer, and furnish
to
the Servicer and any Sub-Servicer any special or limited powers of attorney
and
other documents necessary or appropriate to enable the Servicer or any
Sub-Servicer to carry out their servicing and administrative duties hereunder;
provided,
such
limited powers of attorney or other documents shall be prepared by the Servicer
and submitted to the Trustee for execution. The Trustee shall not be liable
for
the actions of the Servicer or any Sub-Servicers under such powers of
attorney.
The
Servicer further is authorized and empowered by the Trustee, on behalf of
the
Certificateholders and the Trustee, in its own name or in the name of the
Sub-Servicer, when the Servicer or the Sub-Servicer, as the case may be,
believes it is appropriate in its best judgment to register any Mortgage
Loan on
the MERS® System, or cause the removal from the registration of any Mortgage
Loan on the MERS® System, to execute and deliver, on behalf of the Trustee and
the Certificateholders or any of them, any and all instruments of assignment
and
other comparable instruments with respect to such assignment or re-recording
of
a Mortgage in the name of MERS, solely as nominee for the Trustee and its
successors and assigns. Any reasonable expenses incurred in connection with
the
actions described in the preceding sentence or as a result of MERS discontinuing
or becoming unable to continue operations in connection with the MERS® System,
shall be reimbursable to the Servicer by withdrawal from the Collection Account
pursuant to Section 3.11.
Subject
to Section 3.09 hereof, in accordance with the standards of the preceding
paragraph, the Servicer, on escrowed accounts, shall advance or cause to
be
advanced funds as necessary for the purpose of effecting the payment of taxes
and assessments on the Mortgaged Properties, which advances shall be Servicing
Advances reimbursable in the first instance from related collections from
the
Mortgagors pursuant to Section 3.09, and further as provided in Section 3.11.
Any cost incurred by the Servicer or by Sub-Servicers in effecting the payment
of taxes and assessments on a Mortgaged Property shall not, for the purpose
of
calculating distributions to Certificateholders, be added to the unpaid Stated
Principal Balance of the related Mortgage Loan, notwithstanding that the
terms
of such Mortgage Loan so permit.
Notwithstanding
anything in this Agreement to the contrary, the Servicer may not make any
future
advances with respect to a Mortgage Loan (except as provided in Section 4.03)
and the Servicer shall not (i) permit any modification with respect to any
Mortgage Loan that would change the Mortgage Rate, reduce or increase the
Stated
Principal Balance (except for reductions resulting from actual payments of
principal) or change the final maturity date on such Mortgage Loan (unless,
as
provided in Section 3.07, the Mortgagor is in default with respect to the
Mortgage Loan or such default is, in the judgment of the Servicer, reasonably
foreseeable) or (ii) permit any modification, waiver or amendment of any
term of
any Mortgage Loan that would both (A) effect an exchange or reissuance of
such
Mortgage Loan under Section 1001 of the Code (or Treasury regulations
promulgated thereunder) and (B) cause any REMIC created hereunder to fail
to
qualify as a REMIC under the Code or the imposition of any tax on “prohibited
transactions” or “contributions after the startup date” under the REMIC
Provisions.
Notwithstanding
anything in this Agreement to the contrary and notwithstanding its ability
to do
so pursuant to the terms of the related mortgage note, the Servicer shall
not be
required to enforce any provision in any mortgage note the enforcement of
which
would violate federal, state or local laws or ordinances designed to discourage
predatory lending practices.
| SECTION 3.02. |
Sub-Servicing
Agreements Between Servicer and
Sub-Servicers.
|
(a) The
Servicer may enter into Sub-Servicing Agreements with Sub-Servicers, which
may
be Affiliates of the Servicer, for the servicing and administration of the
Mortgage Loans; provided, however, that (i) such sub-servicing arrangement
and
the terms of the related Sub-Servicing Agreement must provide for the servicing
of Mortgage Loans in a manner consistent with the servicing arrangement
contemplated hereunder and (ii) the NIMS Insurer shall have consented to
such
Sub-Servicing Agreement. The Trustee is hereby authorized to acknowledge,
at the
request of the Servicer, any Sub-Servicing Agreement that the Servicer certifies
in writing to the Trustee meets the requirements applicable to Sub-Servicing
Agreements set forth in this Agreement and that is otherwise permitted under
this Agreement.
Each
Sub-Servicer shall be (i) authorized to transact business in the state or
states
where the related Mortgaged Properties it is to service are situated, if
and to
the extent required by applicable law to enable the Sub-Servicer to perform
its
obligations hereunder and under the Sub-Servicing Agreement and (ii) a Xxxxxxx
Mac or Xxxxxx Mae approved mortgage servicer. Each Sub-Servicing Agreement
must
impose on the Sub-Servicer requirements conforming to the provisions set
forth
in Section 3.08, 3.20, 3.21 and 4.06 and provide for servicing of the Mortgage
Loans consistent with the terms of this Agreement. The Servicer will examine
each Sub-Servicing Agreement and will be familiar with the terms thereof.
The
terms of any Sub-Servicing Agreement will not be inconsistent with any of
the
provisions of this Agreement. Any material variations in any Sub-Servicing
Agreements from the provisions set forth in Section 3.08 relating to insurance
or priority requirements of Sub-Servicing Accounts, or credits and charges
to
the Sub- Servicing Accounts or the timing and amount of remittances by the
Sub-Servicers to the Servicer, Section 3.20 or Section 3.21, are conclusively
deemed to be inconsistent with this Agreement and therefore prohibited. The
Servicer shall deliver to the Trust Administrator, the Master Servicer, the
NIMS
Insurer and the Trustee copies of all Sub-Servicing Agreements, and any
amendments or modifications thereof, promptly upon the Servicer’s execution and
delivery of such instruments.
(b) As
part
of its servicing activities hereunder, the Servicer, for the benefit of the
Trustee and the Certificateholders, shall enforce the obligations of each
Sub-Servicer under the related Sub-Servicing Agreement, including, without
limitation, any obligation to make advances in respect of delinquent payments
as
required by a Sub-Servicing Agreement. Such enforcement, including, without
limitation, the legal prosecution of claims, termination of Sub-Servicing
Agreements, and the pursuit of other appropriate remedies, shall be in such
form
and carried out to such an extent and at such time as the Servicer, in its
good
faith business judgment, would require were it the owner of the related Mortgage
Loans. The Servicer shall pay the costs of such enforcement at its own expense,
and shall be reimbursed therefor only (i) from a general recovery resulting
from
such enforcement, to the extent, if any, that such recovery exceeds all amounts
due in respect of the related Mortgage Loans, or (ii) from a specific recovery
of costs, expenses or attorneys’ fees against the party against whom such
enforcement is directed.
| SECTION 3.03. |
Successor
Sub-Servicers.
|
The
Servicer, with the consent of the NIMS Insurer, shall be entitled to terminate
any Sub-Servicing Agreement and the rights and obligations of any Sub-Servicer
pursuant to any Sub-Servicing Agreement in accordance with the terms and
conditions of such Sub-Servicing Agreement. In the event of termination of
any
Sub-Servicer, all servicing obligations of such Sub-Servicer shall be assumed
simultaneously by the Servicer without any act or deed on the part of such
Sub-Servicer or the Servicer, and the Servicer either shall service directly
the
related Mortgage Loans or shall enter into a Sub-Servicing Agreement with
a
successor Sub-Servicer which qualifies under Section 3.02.
Any
Sub-Servicing Agreement shall include the provision that such agreement may
be
immediately terminated by the Master Servicer (if the Master Servicer is
acting
as Servicer) without fee, in accordance with the terms of this Agreement,
in the
event that the Servicer (or the Master Servicer, if it is then acting as
Servicer) shall, for any reason, no longer be the Servicer (including
termination due to a Servicer Event of Default).
| SECTION 3.04. |
Liability
of the Servicer.
|
Notwithstanding
any Sub-Servicing Agreement, any of the provisions of this Agreement relating
to
agreements or arrangements between the Servicer and a Sub-Servicer or reference
to actions taken through a Sub-Servicer or otherwise, the Servicer shall
remain
obligated and primarily liable to the Trustee and the Certificateholders
for the
servicing and administering of the Mortgage Loans in accordance with the
provisions of Section 3.01 without diminution of such obligation or liability
by
virtue of such Sub-Servicing Agreements or arrangements or by virtue of
indemnification from the Sub-Servicer and to the same extent and under the
same
terms and conditions as if the Servicer alone were servicing and administering
the Mortgage Loans. The Servicer shall be entitled to enter into any agreement
with a Sub- Servicer for indemnification of the Servicer by such Sub-Servicer
and nothing contained in this Agreement shall be deemed to limit or modify
such
indemnification.
| SECTION 3.05. |
No
Contractual Relationship Between Sub-Servicers and the Trustee,
the Master
Servicer, the Trust Administrator, the NIMS Insurer or
Certificateholders.
|
Any
Sub-Servicing Agreement that may be entered into and any transactions or
services relating to the Mortgage Loans involving a Sub-Servicer in its capacity
as such shall be deemed to be between the Sub-Servicer and the Servicer alone,
and the Trustee, the Master Servicer, the Trust Administrator, the NIMS Insurer
and the Certificateholders shall not be deemed parties thereto and shall
have no
claims, rights, obligations, duties or liabilities with respect to the
Sub-Servicer except as set forth in Section 3.06. The Servicer shall be solely
liable for all fees owed by it to any Sub-Servicer, irrespective of whether
the
Servicer’s compensation pursuant to this Agreement is sufficient to pay such
fees.
| SECTION 3.06. |
Assumption
or Termination of Sub-Servicing Agreements by Master
Servicer.
|
In
the
event the Servicer shall for any reason no longer be the Servicer (including
by
reason of the occurrence of a Servicer Event of Default), the Master Servicer
or, if the Master Servicer is the Servicer, the Trustee (or the successor
servicer appointed pursuant to Section 7.02), as applicable, shall thereupon
assume all of the rights and obligations of the Servicer under each
Sub-Servicing Agreement that the Servicer may have entered into, unless the
Master Servicer or the Trustee, as applicable, elects to terminate any
Sub-Servicing Agreement in accordance with its terms as provided in Section
3.03. Upon such assumption, the Master Servicer or the Trustee (or the successor
servicer appointed pursuant to Section 7.02), as applicable, shall be deemed,
subject to Section 3.03, to have assumed all of the departing Servicer’s
interest therein and to have replaced the departing Servicer as a party to
each
Sub-Servicing Agreement to the same extent as if each Sub-Servicing Agreement
had been assigned to the assuming party, except that (i) the departing Servicer
shall not thereby be relieved of any liability or obligations under any
Sub-Servicing Agreement that arose before it ceased to be the Servicer and
(ii)
none of the Trust Administrator nor any successor Servicer shall be deemed
to
have assumed any liability or obligation of the Servicer that arose before
it
ceased to be the Servicer.
The
Servicer at its expense shall, upon request of the Master Servicer or the
Trustee, as applicable, deliver to the assuming party all documents and records
relating to each Sub-Servicing Agreement and the Mortgage Loans then being
serviced and an accounting of amounts collected and held by or on behalf
of it,
and otherwise use its best efforts to effect the orderly and efficient transfer
of the Sub-Servicing Agreements to the assuming party.
| SECTION 3.07. |
Collection
of Certain Mortgage Loan Payments.
|
The
Servicer shall make reasonable efforts, in accordance with the servicing
standards set forth in Section 3.01, to collect all payments called for under
the terms and provisions of the Mortgage Loans and the provisions of any
applicable insurance policies provided to the Servicer. Consistent with the
foregoing, the Servicer may in its discretion (i) waive any late payment
charge
or, if applicable, any penalty interest, (ii) waive any provisions of any
Mortgage Loan requiring the related Mortgagor to submit to mandatory arbitration
with respect to disputes arising thereunder or (iii) extend the due dates
for
the Monthly Payments due on a Mortgage Note for a period of not greater than
180
days; provided, however, that any extension pursuant to clause (iii) above
shall
not affect the amortization schedule of any Mortgage Loan for purposes of
any
computation hereunder, except as provided below. In the event of any such
arrangement pursuant to clause (iii) above, the Servicer shall make timely
Advances on such Mortgage Loan during such extension pursuant to Section
4.03
and in accordance with the amortization schedule of such Mortgage Loan without
modification thereof by reason of such arrangement. Notwithstanding the
foregoing, in the event that any Mortgage Loan is in default or, in the judgment
of the Servicer, such default is reasonably foreseeable, the Servicer,
consistent with the standards set forth in Section 3.01, may also waive,
modify
or vary any term of such Mortgage Loan (including modifications that would
change the Mortgage Rate, forgive the payment of principal or interest or
extend
the final maturity date of such Mortgage Loan), accept payment from the related
Mortgagor of an amount less than the Stated Principal Balance in final
satisfaction of such Mortgage Loan, or consent to the postponement of strict
compliance with any such term or otherwise grant indulgence to any Mortgagor
(any and all such waivers, modifications, variances, forgiveness of principal
or
interest, postponements, or indulgences collectively referred to herein as
“forbearance”). The Servicer’s analysis supporting any forbearance and the
conclusion that any forbearance meets the standards of Section 3.01 shall
be
reflected in writing in the Mortgage File or the Servicer’s books and
records.
| SECTION 3.08. |
Sub-Servicing
Accounts.
|
In
those
cases where a Sub-Servicer is servicing a Mortgage Loan pursuant to a Sub-
Servicing Agreement, the Sub-Servicer will be required to establish and maintain
one or more accounts (collectively, the “Sub-Servicing Account”). The
Sub-Servicing Account shall be an Eligible Account and shall comply with
all
requirements of this Agreement relating to the Collection Account. The
Sub-Servicer shall deposit in the clearing account in which it customarily
deposits payments and collections on mortgage loans in connection with its
mortgage loan servicing activities on a daily basis, and in no event more
than
one Business Day after the Sub-Servicer’s receipt thereof, all proceeds of
Mortgage Loans received by the Sub-Servicer less its servicing compensation
to
the extent permitted by the Sub-Servicing Agreement, and shall thereafter
deposit such amounts in the Sub-Servicing Account, in no event more than
two
Business Days after the receipt of such amounts. The Sub-Servicer shall
thereafter deposit such proceeds in the Collection Account or remit such
proceeds to the Servicer for deposit in the Collection Account not later
than
two Business Days after the deposit of such amounts in the Sub-Servicing
Account. For purposes of this Agreement, the Servicer shall be deemed to
have
received payments on the Mortgage Loans when the Sub-Servicer receives such
payments.
| SECTION 3.09. |
Collection
of Taxes, Assessments and Similar Items; Servicing
Accounts.
|
The
Servicer shall establish and maintain, or cause to be established and
maintained, one or more accounts (the “Servicing Accounts”), into which
all
collections from the Mortgagors (or related advances from Sub-Servicers)
for the
payment of taxes, assessments, fire, flood, and hazard insurance premiums,
hazard insurance proceeds (to the extent such amounts are to be applied to
the
restoration or repair of the property) and comparable items for the account
of
the Mortgagors (“Escrow Payments”) shall
be
deposited and retained. Servicing Accounts shall be Eligible Accounts. The
Servicer shall deposit in the clearing account in which it customarily deposits
payments and collections on mortgage loans in connection with its mortgage
loan
servicing activities on a daily basis, and in no event more than one Business
Day after the Servicer’s receipt thereof, all Escrow Payments collected on
account of the Mortgage Loans and shall thereafter deposit such Escrow Payments
in the Servicing Accounts, in no event more than two Business Days after
the
receipt of such Escrow Payments, all Escrow Payments collected on account
of the
Mortgage Loans for the purpose of effecting the payment of any such items
as
required under the terms of this Agreement. Withdrawals of amounts from a
Servicing Account may be made only to (i) effect payment of taxes, assessments,
hazard insurance premiums, and comparable items in a manner and at a time
that
assures that the lien priority of the Mortgage is not jeopardized (or, with
respect to the payment of taxes, in a manner and at a time that avoids the
loss
of the Mortgaged Property due to a tax sale or the foreclosure as a result
of a
tax lien); (ii) reimburse the Servicer (or a Sub-Servicer to the extent provided
in the related Sub-Servicing Agreement) out of related collections for any
Servicing Advances made pursuant to Section 3.01 (with respect to taxes and
assessments) and Section 3.14 (with respect to hazard insurance); (iii) refund
to Mortgagors any sums as may be determined to be overages; (iv) pay interest,
if required and as described below, to Mortgagors on balances in the Servicing
Account; or (v) clear and terminate the Servicing Account at the termination
of
the Servicer’s obligations and responsibilities in respect of the Mortgage Loans
under this Agreement in accordance with Article IX. In the event the Servicer
shall deposit in a Servicing Account any amount not required to be deposited
therein or any amount previously deposited therein is unpaid by the related
Mortgagor’s banking institution, it may at any time withdraw such amount from
such Servicing Account, any provision herein to the contrary notwithstanding.
The Servicer will be responsible for the administration of the Servicing
Accounts and will be obligated to make Servicing Advances to such accounts
when
and as necessary to avoid the lapse of insurance coverage on the Mortgaged
Property, or which the Servicer knows, or in the exercise of the required
standard of care of the Servicer hereunder should know, is necessary to avoid
the loss of the Mortgaged Property due to a tax sale or the foreclosure as
a
result of a tax lien. If any such payment has not been made and the Servicer
receives notice of a tax lien with respect to the Mortgage being imposed,
the
Servicer will, within 10 Business Days of receipt of such notice, advance
or
cause to be advanced funds necessary to discharge such lien on the Mortgaged
Property. As part of its servicing duties, the Servicer or Sub-Servicers
shall
pay to the Mortgagors interest on funds in the Servicing Accounts, to the
extent
required by law and, to the extent that interest earned on funds in the
Servicing Accounts is insufficient, to pay such interest from its or their
own
funds, without any reimbursement therefor. The Servicer may pay to itself
any
excess interest on funds in the Servicing Accounts, to the extent such action
is
in conformity with the servicing standard set forth in Section 3.01, is
permitted by law and such amounts are not required to be paid to Mortgagors
or
used for any of the other purposes set forth above.
| SECTION 3.10. |
Collection
Account.
|
(a) On
behalf
of the Trust Fund, the Servicer shall establish and maintain, or cause to
be
established and maintained, one or more accounts (such account or accounts,
the
“Collection Account”), held in trust for the benefit
of the Trust Administrator, the Trustee and the Certificateholders.
On
behalf of the Trust Fund, the Servicer shall deposit or cause to be deposited
in
the clearing account in which it customarily deposits payments and collections
on mortgage loans in connection with its mortgage loan servicing activities
on a
daily basis, and in no event more than one Business Day after the Servicer’s
receipt thereof, and shall thereafter deposit in the Collection Account,
in no
event more than two Business Days after the Servicer’s receipt thereof, as and
when received or as otherwise required hereunder, the following payments
and
collections received or made by it subsequent to the Cut-off Date (other
than in
respect of principal or interest on the Mortgage Loans due on or before the
Cut-off Date) or payments (other than Principal Prepayments) received by
it on
or prior to the Cut-off Date but allocable to a Due Period subsequent
thereto:
(i) all
payments on account of principal, including Principal Prepayments (but not
Prepayment Charges), on the Mortgage Loans;
(ii) all
payments on account of interest (net of the Servicing Fee) on each Mortgage
Loan;
(iii) all
Insurance Proceeds, Liquidation Proceeds, Subsequent Recoveries and condemnation
proceeds (other than proceeds collected in respect of any particular REO
Property and amounts paid in connection with a purchase of Mortgage Loans
and
REO Properties pursuant to Section 9.01);
(iv) any
amounts required to be deposited pursuant to Section 3.12 in connection with
any
losses realized on Permitted Investments with respect to funds held in the
Collection Account;
(v) any
amounts required to be deposited by the Servicer pursuant to the second
paragraph of Section 3.14(a) in respect of any blanket policy
deductibles;
(vi) all
proceeds of any Mortgage Loan repurchased or purchased in accordance with
Section 2.03, Section 3.16(c) or Section 9.01;
(vii) all
amounts required to be deposited in connection with Substitution Adjustments
pursuant to Section 2.03; and
(viii) all
Prepayment Charges collected by the Servicer, and any Servicer Prepayment
Charge
Payment Amounts in connection with the Principal Prepayment of any of the
Mortgage Loans.
The
foregoing requirements for deposit in the Collection Account shall be exclusive,
it being understood and agreed that, without limiting the generality of the
foregoing, payments in the nature of Servicing Fees, late payment charges,
Prepayment Interest Excess, assumption fees, insufficient funds charges and
ancillary income (other than Prepayment Charges) need not be deposited by
the
Servicer in the Collection Account and may be retained by the Servicer as
additional compensation. In the event the Servicer shall deposit in the
Collection Account any amount not required to be deposited therein, it may
at
any time withdraw such amount from the Collection Account, any provision
herein
to the contrary notwithstanding.
(b) On
behalf
of the Trust Fund, the Servicer shall deliver to the Trust Administrator
in
immediately available funds for deposit in the Distribution Account on or
before
4:00 p.m. New York time (i) on the Servicer Remittance Date, that portion
of the
Available Funds (calculated without regard to the references in the definition
thereof to amounts that may be withdrawn from the Distribution Account) for
the
related Distribution Date then on deposit in the Collection Account, the
amount
of all Prepayment Charges collected during the applicable Prepayment Period
by
the Servicer and Servicer Prepayment Charge Payment Amounts in connection
with
the Principal Prepayment of any of the Mortgage Loans then on deposit in
the
Collection Account, the amount of any funds reimbursable to an Advancing
Person
pursuant to Section 3.26 (unless such amounts are to be remitted in another
manner as specified in the documentation establishing the related Advance
Facility) and (ii) on each Business Day as of the commencement of which the
balance on deposit in the Collection Account exceeds $75,000 following any
withdrawals pursuant to the next succeeding sentence, the amount of such
excess,
but only if the Collection Account constitutes an Eligible Account solely
pursuant to clause (ii) of the definition of “Eligible Account.” If the balance
on deposit in the Collection Account exceeds $75,000 as of the commencement
of
business on any Business Day and the Collection Account does not qualify
as an
Eligible Account pursuant to clauses (i), (iii) or (iv) of the definition
of
“Eligible Account,” the Servicer shall, on or before 4:00 p.m. New York time on
such Business Day, withdraw from the Collection Account any and all amounts
payable or reimbursable to the Servicer, the Advancing Person, the Trustee,
the
Trust Administrator or any Sub-Servicer pursuant to Section 3.11 and shall
pay
such amounts to the Persons entitled thereto.
(c) Funds
in
the Collection Account may be invested in Permitted Investments in accordance
with the provisions set forth in Section 3.12. The Servicer shall give written
notice to the Trust Administrator, the Depositor, the Master Servicer and
the
NIMS Insurer of the location of the Collection Account maintained by it when
established and prior to any change thereof. The Trust Administrator shall
give
notice to the NIMS Insurer, the Servicer and the Depositor of the location
of
the Distribution Account when established and prior to any change thereof.
(d) Funds
held in the Collection Account at any time may be delivered by the Servicer
to
the Trust Administrator for deposit in an account (which may be the Distribution
Account and must satisfy the standards for the Distribution Account as set
forth
in the definition thereof) and for all purposes of this Agreement shall be
deemed to be a part of the Collection Account; provided, however, that the
Trust
Administrator shall have the sole authority to withdraw any funds held pursuant
to this subsection (d). In the event the Servicer shall deliver to the Trust
Administrator for deposit in the Distribution Account any amount not required
to
be deposited therein, it may at any time request in writing that the Trust
Administrator withdraw such amount from the Distribution Account and remit
to it
any such amount, any provision herein to the contrary notwithstanding. In
addition, the Servicer, with respect to items (i) through (iv) below, shall
deliver to the Trust Administrator from time to time for deposit, and the
Trust
Administrator, with respect to items (i) through (iv) below, shall so deposit,
in the Distribution Account:
(i) any
Advances, as required pursuant to Section 4.03;
(ii) any
amounts required to be deposited pursuant to Section 3.23(d) or (f) in
connection with any REO Property;
(iii) any
amounts to be paid by the Servicer in connection with a purchase of Mortgage
Loans and REO Properties pursuant to Section 9.01;
(iv)
any
Compensating Interest to be deposited pursuant to Section 3.24 in connection
with any Prepayment Interest Shortfall; and
(v)
any
amounts required to be paid to the Trustee pursuant to the Agreement, including,
but not limited to Section 3.06 and Section 7.02.
(e) The
Servicer shall deposit in the Collection Account any amounts required to
be
deposited pursuant to Section 3.12(b) in connection with losses realized
on
Permitted Investments with respect to funds held in the Collection
Account.
| SECTION 3.11. |
Withdrawals
from the Collection Account.
|
(a) The
Servicer shall, from time to time, make withdrawals from the Collection Account
for any of the following purposes, without priority, or as described in Section
4.04:
(i) to
remit
to the Trust Administrator for deposit in the Distribution Account the amounts
required to be so remitted pursuant to Section 3.10(b) or permitted to be
so
remitted pursuant to the first sentence of Section 3.10(d) and paid to the
Trust
Administrator in accordance with Section 3.10(d)(v);
(ii) subject
to Section 3.16(d), to reimburse the Servicer for (a) any unreimbursed Advances
to the extent of amounts received which represent Late Collections (net of
the
related Servicing Fees), Liquidation Proceeds and Insurance Proceeds on Mortgage
Loans or REO Properties with respect to which such Advances were made in
accordance with the provisions of Section 4.04; or (b) without limiting any
right of withdrawal set forth in clause (vi) below, any unreimbursed Advances
that, upon a Final Recovery Determination with respect to such Mortgage Loan,
are Nonrecoverable Advances, but only to the extent that Late Collections,
Liquidation Proceeds and Insurance Proceeds received with respect to such
Mortgage Loan are insufficient to reimburse the Servicer for such unreimbursed
Advances;
(iii) subject
to Section 3.16(d), to pay the Servicer or any Sub-Servicer (a) any unpaid
Servicing Fees, (b) any unreimbursed Servicing Advances with respect to each
Mortgage Loan, but only to the extent of any Late Collections, Liquidation
Proceeds and Insurance Proceeds received with respect to such Mortgage Loan
or
REO Property, and (c) without limiting any right of withdrawal set forth
in
clause (vi) below, any Servicing Advances made with respect to a Mortgage
Loan
that, upon a Final Recovery Determination with respect to such Mortgage Loan
are
Nonrecoverable Advances, but only to the extent that Late Collections,
Liquidation Proceeds and Insurance Proceeds received with respect to such
Mortgage Loan are insufficient to reimburse the Servicer or any Sub-Servicer
for
Servicing Advances;
(iv) to
pay to
the Servicer as additional servicing compensation (in addition to the Servicing
Fee) on the Servicer Remittance Date any interest or investment income earned
on
funds deposited in the Collection Account;
(v) to
pay
itself or the Originator or the Seller with respect to each Mortgage Loan
that
has previously been purchased or replaced pursuant to Section 2.03 or Section
3.16(c) all amounts received thereon subsequent to the date of purchase or
substitution, as the case may be;
(vi) to
reimburse the Servicer for (a) any Advance or Servicing Advance previously
made
which the Servicer has determined to be a Nonrecoverable Advance in accordance
with the provisions of Section 4.03 and (b) following the liquidation of
a
second lien Mortgage Loan, any unpaid Servicing Fees for the six-month period
immediately following the last paid through date with respect to such Mortgage
Loan, to the extent not recoverable from Liquidation Proceeds, Insurance
Proceeds or other amounts received with respect to the related second lien
Mortgage Loan;
(vii) to
pay,
or to reimburse the Servicer for Servicing Advances in respect of, expenses
incurred in connection with any Mortgage Loan pursuant to Section
3.16(b);
(viii) to
reimburse the Servicer or the Depositor for expenses incurred by or reimbursable
to the Servicer or the Depositor pursuant to Section 6.03;
(ix) to
reimburse the NIMS Insurer, the Servicer, the Trust Administrator, the Master
Servicer or the Trustee, as the case may be, for expenses reasonably incurred
in
respect of the breach or defect giving rise to the purchase obligation under
Section 2.03 of this Agreement that were included in the Purchase Price of
the
Mortgage Loan, including any expenses arising out of the enforcement of the
purchase obligation;
(x) to
pay
itself any Prepayment Interest Excess (to the extent not otherwise
retained);
(xi) to
reimburse the Servicer for any Advance or Servicing Advance made with respect
to
a delinquent Mortgage Loan which has been modified by the Servicer in accordance
with the terms of this Agreement but only after receipt by the Servicer of
three
(3) consecutive payments following such modification;
(xii) to
invest
funds in Permitted Investments in accordance with Section 3.12;
(xiii) to
clear
and terminate the Collection Account pursuant to Section 9.01; and
(xiv) to
make
reimbursements for amounts owed on Mortgage Loans on or prior to the Cut-off
Date pursuant to Section 2.01 of this Agreement.
(b) The
foregoing requirements for withdrawal from the Collection Account shall be
exclusive. In the event the Servicer shall deposit in the Collection Account
any
amount not required to be deposited therein or any amount previously deposited
therein is unpaid by the related Mortgagor’s banking institution, it may at any
time withdraw such amount from the Collection Account, any provision herein
to
the contrary notwithstanding.
The
Servicer shall keep and maintain separate accounting, on a Mortgage Loan
by
Mortgage Loan basis, for the purpose of justifying any withdrawal from the
Collection Account, to the extent held by or on behalf of it, pursuant to
subclauses (ii), (iii), (iv), (v), (vi) and (vii) above. The Servicer shall
provide written notification to the NIMS Insurer and the Trust Administrator,
on
or prior to the next succeeding Servicer Remittance Date, upon making any
withdrawals from the Collection Account pursuant to subclause (vi) above;
provided that an Officers’ Certificate in the form described under Section
4.03(d) shall suffice for such written notification to the Trust Administrator
in respect hereof.
| SECTION 3.12. |
Investment
of Funds in the Collection Account.
|
(a) The
Servicer may direct any depository institution maintaining the Collection
Account and REO Account to invest the funds on deposit in such accounts or
to
hold such funds uninvested (each such account, for the purposes of this Section
3.12, an “Investment Account”). All investments pursuant to this Section 3.12
shall be in one or more Permitted Investments bearing interest or sold at
a
discount, and maturing, unless payable on demand, (i) no later than the Business
Day immediately preceding the date on which such funds are required to be
withdrawn from such account pursuant to this Agreement, if a Person other
than
the Trust Administrator is the obligor thereon or if such investment is managed
or advised by a Person other than the Trust Administrator or an Affiliate
of the
Trust Administrator, and (ii) no later than the date on which such funds
are
required to be withdrawn from such account pursuant to this Agreement, if
the
Trust Administrator is the obligor thereon or if such investment is managed
or
advised by the Trust Administrator or any Affiliate. All such Permitted
Investments shall be held to maturity, unless payable on demand. Any investment
of funds in an Investment Account shall be made in the name of the Trust
Administrator (in its capacity as such), or in the name of a nominee of the
Trust Administrator. The Trust Administrator shall be entitled to sole
possession (except with respect to investment direction of funds held in
the
Collection Account and REO Account and any income and gain realized thereon)
over each such investment, and any certificate or other instrument evidencing
any such investment shall be delivered directly to the Trust Administrator
or
its agent, together with any document of transfer necessary to transfer title
to
such investment to the Trust Administrator or its nominee. In the event amounts
on deposit in an Investment Account are at any time invested in a Permitted
Investment payable on demand, the Trust Administrator shall:
(x) consistent
with any notice required to be given thereunder, demand that payment thereon
be
made on the last day such Permitted Investment may otherwise mature hereunder
in
an amount equal to the lesser of (1) all amounts then payable thereunder
and (2)
the amount required to be withdrawn on such date; and
(y) demand
payment of all amounts due thereunder promptly upon determination by a
Responsible Officer of the Trust Administrator that such Permitted Investment
would not constitute a Permitted Investment in respect of funds thereafter
on
deposit in the Investment Account.
(b) All
income and gain realized from the investment of funds deposited in the
Collection Account and any REO Account held by or on behalf of the Servicer
shall be for the benefit of the Servicer and shall be subject to its withdrawal
in accordance with Section 3.11 or Section 3.23, as applicable. The Servicer
shall deposit in the Collection Account or any REO Account, as applicable,
the
amount of any loss of principal incurred in respect of any such Permitted
Investment made with funds in such Account immediately upon realization of
such
loss.
(c) Except
as
otherwise expressly provided in this Agreement, if any default occurs in
the
making of a payment due under any Permitted Investment, or if a default occurs
in any other performance required under any Permitted Investment, the Trust
Administrator may and, subject to Section 8.01 and Section 8.02(a)(v), upon
the
request of the NIMS Insurer or the Holders of Certificates representing more
than 50% of the Voting Rights allocated to any Class of Certificates, shall
take
such action as may be appropriate to enforce such payment or performance,
including the institution and prosecution of appropriate
proceedings.
| SECTION 3.13. |
[Reserved].
|
| SECTION 3.14. |
Maintenance
of Hazard Insurance and Errors and Omissions and Fidelity
Coverage.
|
(a) The
Servicer shall cause to be maintained for each Mortgage Loan hazard insurance
with extended coverage on the Mortgaged Property in an amount which is at
least
equal to the least of (i) the current Principal Balance of such Mortgage
Loan,
(ii) the amount necessary to fully compensate for any damage or loss to the
improvements that are a part of such property on a replacement cost basis
and
(iii) the maximum insurable value of the improvements which are part of such
Mortgaged Property, in each case in an amount not less than such amount as
is
necessary to avoid the application of any coinsurance clause contained in
the
related hazard insurance policy. The Servicer shall also cause to be maintained
hazard insurance with extended coverage on each REO Property in an amount
which
is at least equal to the least of (i) the maximum insurable value of the
improvements which are a part of such property, (ii) the outstanding Principal
Balance of the related Mortgage Loan at the time it became an REO Property
and
(iii) the maximum insurable value of the improvements which are part of such
REO
Property. The Servicer will comply in the performance of this Agreement with
all
reasonable rules and requirements of each insurer under any such hazard
policies. Any amounts to be collected by the Servicer under any such policies
(other than amounts to be applied to the restoration or repair of the property
subject to the related Mortgage or amounts to be released to the Mortgagor
in
accordance with the procedures that the Servicer would follow in servicing
loans
held for its own account, subject to the terms and conditions of the related
Mortgage and Mortgage Note) shall be deposited in the Collection Account,
subject to withdrawal pursuant to Section 3.11, if received in respect of
a
Mortgage Loan, or in the REO Account, subject to withdrawal pursuant to Section
3.23, if received in respect of an REO Property. Any cost incurred by the
Servicer in maintaining any such insurance shall not, for the purpose of
calculating distributions to Certificateholders, be added to the unpaid
Principal Balance of the related Mortgage Loan, notwithstanding that the
terms
of such Mortgage Loan so permit. It is understood and agreed that no earthquake
or other additional insurance is to be required of any Mortgagor other than
pursuant to such applicable laws and regulations as shall at any time be
in
force and as shall require such additional insurance. If the Mortgaged Property
or REO Property is at any time in an area identified in the Federal Register
by
the Federal Emergency Management Agency as having special flood hazards and
flood insurance has been made available, the Servicer will cause to be
maintained a flood insurance policy in respect thereof. Such flood insurance
shall be in an amount equal to the least of (i) the unpaid Principal Balance
of
the related Mortgage Loan, (ii) the maximum amount of such insurance available
for the related Mortgaged Property under the national flood insurance program
(assuming that the area in which such Mortgaged Property is located is
participating in such program) and (iii) the maximum insurable value of the
improvements which are part of such Mortgaged Property.
In
the
event that the Servicer shall obtain and maintain a blanket policy insuring
against hazard losses on all of the Mortgage Loans, it shall conclusively
be
deemed to have satisfied its obligations as set forth in the first two sentences
of this Section 3.14, it being understood and agreed that such policy may
contain a deductible clause on terms substantially equivalent to those
commercially available and maintained by competent servicers, in which case
the
Servicer shall, in the event that there shall not have been maintained on
the
related Mortgaged Property or REO Property a policy complying with the first
two
sentences of this Section 3.14, and there shall have been one or more losses
which would have been covered by such policy, deposit to the Collection Account
from its own funds the amount not otherwise payable under the blanket policy
because of such deductible clause. In connection with its activities as servicer
of the Mortgage Loans, the Servicer agrees to prepare and present, on behalf
of
itself, the Trustee, the Trust Fund and Certificateholders, claims under
any
such blanket policy in a timely fashion in accordance with the terms of such
policy.
(b) The
Servicer shall keep in force during the term of this Agreement a policy or
policies of insurance covering errors and omissions for failure in the
performance of the Servicer’s obligations under this Agreement, which policy or
policies shall be in such form and amount that would meet the requirements
of
Xxxxxx Xxx or Xxxxxxx Mac if it were the purchaser of the Mortgage Loans,
unless
the Servicer has obtained a waiver of such requirements from Xxxxxx Mae or
Xxxxxxx Mac. The Servicer shall also maintain a fidelity bond in the form
and
amount that would meet the requirements of Xxxxxx Mae or Xxxxxxx Mac, unless
the
Servicer has obtained a waiver of such requirements from Xxxxxx Mae or Xxxxxxx
Mac. The Servicer shall be deemed to have complied with this provision if
an
Affiliate of the Servicer has such errors and omissions and fidelity bond
coverage and, by the terms of such insurance policy or fidelity bond, the
coverage afforded thereunder extends to the Servicer. Any such errors and
omissions policy and fidelity bond shall by its terms not be cancelable without
thirty days’ prior written notice to the Trust Administrator and the NIMS
Insurer. The Servicer shall also cause each Sub-Servicer to maintain a policy
of
insurance covering errors and omissions and a fidelity bond which would meet
such requirements.
| SECTION 3.15. |
Enforcement
of Due-On-Sale Clauses; Assumption
Agreements.
|
The
Servicer will, to the extent it has knowledge of any conveyance or prospective
conveyance of any Mortgaged Property by any Mortgagor (whether by absolute
conveyance or by contract of sale, and whether or not the Mortgagor remains
or
is to remain liable under the Mortgage Note and/or the Mortgage), exercise
its
rights to accelerate the maturity of such Mortgage Loan under the “due-on-sale”
clause, if any, applicable thereto; provided, however, that the Servicer
shall
not be required to take such action if in its sole business judgment the
Servicer believes it is not in the best interests of the Trust Fund and shall
not exercise any such rights if prohibited by law from doing so. If the Servicer
reasonably believes it is unable under applicable law to enforce such
“due-on-sale” clause, or if any of the other conditions set forth in the proviso
to the preceding sentence apply, the Servicer will enter into an assumption
and
modification agreement from or with the person to whom such property has
been
conveyed or is proposed to be conveyed, pursuant to which such person becomes
liable under the Mortgage Note and, to the extent permitted by applicable
state
law, the Mortgagor remains liable thereon. The Servicer is also authorized,
to
the extent permitted under the related Mortgage Note, to enter into a
substitution of liability agreement with such person, pursuant to which the
original Mortgagor is released from liability and such person is substituted
as
the Mortgagor and becomes liable under the Mortgage Note, provided that no
such
substitution shall be effective unless such person satisfies the underwriting
criteria of the Servicer for a mortgage loan similar to the Mortgage Loan.
In
connection with any assumption, modification or substitution, the Servicer
shall
apply such underwriting standards and follow such practices and procedures
as
shall be normal and usual in its general mortgage servicing activities and
as it
applies to other mortgage loans owned solely by it. The Servicer shall not
take
or enter into any assumption and modification agreement, however, unless
(to the
extent practicable in the circumstances) it shall have received confirmation,
in
writing, of the continued effectiveness of any applicable hazard insurance
policy. Any fee collected by the Servicer in respect of an assumption,
modification or substitution of liability agreement shall be retained by
the
Servicer as additional servicing compensation. In connection with any such
assumption, no material term of the Mortgage Note (including but not limited
to
the related Mortgage Rate and the amount of the Monthly Payment) may be amended
or modified, except as otherwise required pursuant to the terms thereof.
The
Servicer shall notify the Master Servicer, the Trust Administrator and the
Custodian that any such substitution, modification or assumption agreement
has
been completed by forwarding to the Custodian the executed original of such
substitution, modification or assumption agreement, which document shall
be
added to the related Mortgage File and shall, for all purposes, be considered
a
part of such Mortgage File to the same extent as all other documents and
instruments constituting a part thereof.
Notwithstanding
the foregoing paragraph or any other provision of this Agreement, the Servicer
shall not be deemed to be in default, breach or any other violation of its
obligations hereunder by reason of any assumption of a Mortgage Loan by
operation of law or by the terms of the Mortgage Note or any assumption which
the Servicer may be restricted by law from preventing, for any reason
whatsoever. For purposes of this Section 3.15, the term “assumption” is deemed
to also include a sale (of the Mortgaged Property) subject to the Mortgage
that
is not accompanied by an assumption or substitution of liability
agreement.
| SECTION 3.16. |
Realization
Upon Defaulted Mortgage Loans.
|
(a) The
Servicer shall use its best efforts, consistent with the servicing standards
set
forth in Section 3.01, to foreclose upon or otherwise comparably convert
the
ownership of properties securing such of the Mortgage Loans as come into
and
continue in default and as to which no satisfactory arrangements can be made
for
collection of delinquent payments pursuant to Section 3.07. The Servicer
shall
be responsible for all costs and expenses incurred by it in any such
proceedings; provided, however, that such costs and expenses will be recoverable
as Servicing Advances by the Servicer as contemplated in Section 3.11(a)
and
Section 3.23. The foregoing is subject to the provision that, in any case
in
which a Mortgaged Property shall have suffered damage from an Uninsured Cause,
the Servicer shall not be required to expend its own funds toward the
restoration of such property unless it shall determine in its discretion
that
such restoration will increase the proceeds of liquidation of the related
Mortgage Loan after reimbursement to itself for such expenses. With respect
to
any second lien Mortgage Loan for which the related first lien mortgage loan
is
not included in the Trust Fund, if, after such Mortgage Loan becomes 180
days or
more delinquent, the Servicer determines that a significant recovery is not
possible through foreclosure, such Mortgage Loan may be charged off and the
Mortgage Loan will be treated as a Liquidated Mortgage Loan giving rise to
a
Realized Loss.
(b) Notwithstanding
the foregoing provisions of this Section 3.16 or any other provision of this
Agreement, with respect to any Mortgage Loan as to which the Servicer has
received actual notice of, or has actual knowledge of, the presence of any
toxic
or hazardous substance on the related Mortgaged Property, the Servicer shall
not, on behalf of the Trustee, either (i) obtain title to such Mortgaged
Property as a result of or in lieu of foreclosure or otherwise, or (ii)
otherwise acquire possession of, or take any other action with respect to,
such
Mortgaged Property, if, as a result of any such action, the Trustee, the
Trust
Fund or the Certificateholders would be considered to hold title to, to be
a
“mortgagee-in-possession” of, or to be an “owner” or “operator” of such
Mortgaged Property within the meaning of the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended from time to
time,
or any comparable law, unless the Servicer has also previously determined,
based
on its reasonable judgment and a report prepared by a Person who regularly
conducts environmental audits using customary industry standards,
that:
(1) such
Mortgaged Property is in compliance with applicable environmental laws or,
if
not, that it would be in the best economic interest of the Trust Fund to
take
such actions as are necessary to bring the Mortgaged Property into compliance
therewith; and
(2) there
are
no circumstances present at such Mortgaged Property relating to the use,
management or disposal of any hazardous substances, hazardous materials,
hazardous wastes, or petroleum-based materials for which investigation, testing,
monitoring, containment, clean-up or remediation could be required under
any
federal, state or local law or regulation, or that if any such materials
are
present for which such action could be required, that it would be in the
best
economic interest of the Trust Fund to take such actions with respect to
the
affected Mortgaged Property.
The
Servicer shall forward a copy of the environmental audit report to the
Depositor, the Master Servicer and the NIMS Insurer. Notwithstanding the
foregoing, if such environmental audit reveals, or if the Servicer has actual
knowledge or notice, that such Mortgaged Property contains such wastes or
substances, the Servicer shall not foreclose or accept a deed in lieu of
foreclosure without the prior written consent of the NIMS Insurer.
The
cost
of the environmental audit report contemplated by this Section 3.16 shall
be
advanced by the Servicer, subject to the Servicer’s right to be reimbursed
therefor from the Collection Account as provided in Section 3.11(a)(vii),
such
right of reimbursement being prior to the rights of Certificateholders to
receive any amount in the Collection Account received in respect of the affected
Mortgage Loan or other Mortgage Loans.
If
the
Servicer determines, as described above, that it is in the best economic
interest of the Trust Fund to take such actions as are necessary to bring
any
such Mortgaged Property into compliance with applicable environmental laws,
or
to take such action with respect to the containment, clean-up or remediation
of
hazardous substances, hazardous materials, hazardous wastes or petroleum-based
materials affecting any such Mortgaged Property, then the Servicer shall
take
such action as it deems to be in the best economic interest of the Trust
Fund;
provided that any amounts disbursed by the Servicer pursuant to this Section
3.16(b) shall constitute Servicing Advances, subject to Section 4.03(d).
The
cost of any such compliance, containment, clean-up or remediation shall be
advanced by the Servicer, subject to the Servicer’s right to be reimbursed
therefor from the Collection Account as provided in Section 3.11(a)(vii),
such
right of reimbursement being prior to the rights of Certificateholders to
receive any amount in the Collection Account received in respect of the affected
Mortgage Loan or other Mortgage Loans.
(c) The
Servicer or the NIMS Insurer may, at its option, purchase a Mortgage Loan
which
has become 90 or more days delinquent or for which the Servicer has accepted
a
deed in lieu of foreclosure. Prior to purchase pursuant to this Section 3.16(c),
the Servicer shall be required to continue to make Advances pursuant to Section
4.03. If the Servicer or the NIMS Insurer purchases any delinquent Mortgage
Loans pursuant to this Section 3.16(c), it must purchase Mortgage Loans that
are
delinquent the greatest number of days before it may purchase any that are
delinquent any fewer number of days. The Servicer or the NIMS Insurer shall
purchase such delinquent Mortgage Loan at a price equal to the Purchase Price
of
such Mortgage Loan. Any such purchase of a Mortgage Loan pursuant to this
Section 3.16(c) shall be accomplished by deposit in the Collection Account
of
the amount of the Purchase Price. Upon the satisfaction of the requirements
set
forth in Section 3.17(a), the Custodian on behalf of the Trustee shall
immediately deliver the Mortgage File and any related documentation to the
Servicer or the NIMS Insurer and the Trustee will execute such documents
provided to it as are necessary to convey the Mortgage Loan to the Servicer
or
the NIMS Insurer, as applicable.
(d) Proceeds
received in connection with any Final Recovery Determination, as well as
any
recovery resulting from a partial collection of Insurance Proceeds, Liquidation
Proceeds or condemnation proceeds, in respect of any Mortgage Loan, will
be
applied in the following order of priority: first, to make reimbursements
for
amounts owed on the Mortgage Loans on or prior to the Cut-off Date pursuant
to
Section 2.01 of this Agreement, second, to unpaid Servicing Fees; third,
to
reimburse the Servicer or any Sub-Servicer for any related unreimbursed
Servicing Advances pursuant to Section 3.11(a)(iii) and Advances pursuant
to
Section 3.11(a)(ii); fourth, to accrued and unpaid interest on the Mortgage
Loan, to the date of the Final Recovery Determination, or to the Due Date
prior
to the Distribution Date on which such amounts are to be distributed if not
in
connection with a Final Recovery Determination; and fifth, as a recovery
of
principal of the Mortgage Loan. The portion of the recovery so allocated
to
unpaid Servicing Fees shall be reimbursed to the Servicer or any Sub-Servicer
pursuant to Section 3.11(a)(iii).
| SECTION 3.17. |
Trustee
to Cooperate; Release of Mortgage
Files.
|
(a) Upon
the
payment in full of any Mortgage Loan, or the receipt by the Servicer of a
notification that payment in full shall be escrowed in a manner customary
for
such purposes, the Servicer will immediately notify the Custodian, on behalf
of
the Trustee by a certification and shall deliver to the Custodian, in written
(with two executed copies) or electronic format, a Request for Release in
the
form of Exhibit E hereto (which certification shall include a statement to
the
effect that all amounts received or to be received in connection with such
payment which are required to be deposited in the Collection Account pursuant
to
Section 3.10 have been or will be so deposited) signed by a Servicing Officer
(or in a mutually agreeable electronic format that will, in lieu of a signature
on its face, originate from a Servicing Officer) and shall request delivery
to
it of the Mortgage File. Upon receipt of such certification and request,
the
Custodian shall (pursuant to the terms of the Custodial Agreement) promptly
release the related Mortgage File to the Servicer and the Servicer is authorized
to cause the removal from the registration on the MERS® System of any such
Mortgage Loan, if applicable. Except as otherwise provided herein, no expenses
incurred in connection with any instrument of satisfaction or deed of
reconveyance shall be chargeable to the Collection Account or the Distribution
Account.
(b) From
time
to time and as appropriate for the servicing or foreclosure of any Mortgage
Loan, including, for this purpose, collection under any insurance policy
relating to the Mortgage Loans, the Custodian shall (pursuant to the terms
of
the Custodial Agreement), upon request of the Servicer and delivery to the
Custodian, in written (with two executed copies) or electronic format, of
a
Request for Release in the form of Exhibit E signed by a Servicing Officer
(or
in a mutually agreeable electronic format that will, in lieu of a signature
on
its face, originate from a Servicing Officer), release the related Mortgage
File
to the Servicer within five Business Days, and the Trustee shall, at the
written
direction of the Servicer, execute such documents as shall be necessary to
the
prosecution of any such proceedings. Such Request for Release shall obligate
the
Servicer to return each and every document previously requested from the
Mortgage File to the Custodian when the need therefor by the Servicer no
longer
exists, unless the Mortgage Loan has been liquidated or charged off and the
Liquidation Proceeds relating to the Mortgage Loan have been deposited in
the
Collection Account or the Mortgage File or such document has been delivered
to
an attorney, or to a public trustee or other public official as required
by law,
for purposes of initiating or pursuing legal action or other proceedings
for the
foreclosure of the Mortgaged Property either judicially or non-judicially,
and
the Servicer has delivered to the Custodian, on behalf of the Trustee, a
certificate of a Servicing Officer certifying as to such liquidation or action
or proceedings. Upon the request of the Custodian, the Servicer shall provide
notice to the Custodian of the name and address of the Person to which such
Mortgage File or such document was delivered and the purpose or purposes
of such
delivery. Upon receipt of a Request for Release, in written (with two executed
copies) or electronic format, from a Servicing Officer stating that such
Mortgage Loan was liquidated and that all amounts received or to be received
in
connection with such liquidation that are required to be deposited into the
Collection Account have been so deposited, or that such Mortgage Loan has
become
an REO Property, such Mortgage Loan shall be released by the Custodian, on
behalf of the Trustee, to the Servicer or its designee.
(c) Upon
written certification of a Servicing Officer, the Trustee shall execute and
deliver to the Servicer or the Sub-Servicer, as the case may be, copies of,
any
court pleadings, requests for trustee’s sale or other documents necessary to the
foreclosure or trustee’s sale in respect of a Mortgaged Property or to any legal
action brought to obtain judgment against any Mortgagor on the Mortgage Note
or
Mortgage or to obtain a deficiency judgment, or to enforce any other remedies
or
rights provided by the Mortgage Note or Mortgage or otherwise available at
law
or in equity. Each such certification shall include a request that such
pleadings or documents be executed by the Trustee and a statement as to the
reason such documents or pleadings are required and that the execution and
delivery thereof by the Trustee will not invalidate or otherwise affect the
lien
of the Mortgage, except for the termination of such a lien upon completion
of
the foreclosure or trustee’s sale.
| SECTION 3.18. |
Servicing
Compensation.
|
As
compensation for the activities of the Servicer hereunder, the Servicer shall
be
entitled to the Servicing Fee with respect to each Mortgage Loan payable
solely
from payments of interest in respect of such Mortgage Loan or as otherwise
provided in Section 3.11, subject to Section 3.24. In addition, the Servicer
shall be entitled to recover unpaid Servicing Fees out of Insurance Proceeds,
Liquidation Proceeds or condemnation proceeds to the extent permitted by
Section
3.11(a)(iii) and out of amounts derived from the operation and sale of an
REO
Property to the extent permitted by Section 3.23. Except as provided in Section
3.26 or Section 6.04, the right to receive the Servicing Fee may not be
transferred in whole or in part except in connection with the transfer of
all of
the Servicer’s responsibilities and obligations under this Agreement; provided,
however, that the Servicer may pay from the Servicing Fee any amounts due
to a
Sub-Servicer pursuant to a Sub-Servicing Agreement entered into under Section
3.02.
Additional
servicing compensation in the form of assumption fees, late payment charges,
insufficient funds charges, ancillary income or otherwise (other than Prepayment
Charges) shall be retained by the Servicer only to the extent such fees or
charges are received by the Servicer. The Servicer shall also be entitled
pursuant to Section 3.11(a)(iv) to withdraw from the Collection Account and
pursuant to Section 3.23(b) to withdraw from any REO Account, as additional
servicing compensation, interest or other income earned on deposits therein,
subject to Section 3.12 and Section 3.24. The Servicer shall also be entitled
to
receive Prepayment Interest Excess pursuant to Section 3.10 and 3.11 as
additional servicing compensation. The Servicer shall be required to pay
all
expenses incurred by it in connection with its servicing activities hereunder
(including premiums for the insurance required by Section 3.14, to the extent
such premiums are not paid by the related Mortgagors or by a Sub-Servicer
and
servicing compensation of each Sub-Servicer) and shall not be entitled to
reimbursement therefor except as specifically provided herein.
| SECTION 3.19. |
Reports
to the Trust Administrator; Collection Account
Statements.
|
Not
later
than twenty days after each Distribution Date, the Servicer shall forward,
upon
request, to the Trust Administrator, the NIMS Insurer and the Depositor the
most
current available bank statement for the Collection Account. Copies of such
statement shall be provided by the Trust Administrator to any Certificateholder
and to any Person identified to the Trust Administrator as a prospective
transferee of a Certificate, upon request at the expense of the requesting
party, provided such statement is delivered by the Servicer to the Trust
Administrator.
| SECTION 3.20. |
Statement
as to Compliance.
|
The
Servicer, the Master Servicer and the Trust Administrator shall deliver (or
otherwise make available) (and each of the Servicer, the Master Servicer
and the
Trust Administrator shall cause any Sub-Servicer subject to Item 1108(a)(2)
of
Regulation AB engaged by it to deliver) to the Trust Administrator (and the
Trust Administrator shall deliver (or otherwise make available) to the
Depositor) on or before March 15th
(with no
cure period) of each year, commencing in March 2007, an Officer’s Certificate
stating, as to the signer thereof, that (A) a review of such party’s activities
during the preceding calendar year or portion thereof and of such party’s
performance under this Agreement, or such other applicable agreement in the
case
of a Servicing Function Participant, has been made under such officer’s
supervision and (B) to the best of such officer’s knowledge, based on such
review, such party has fulfilled all its obligations under this Agreement,
or
such other applicable agreement in the case of a Servicing Function Participant,
in all material respects throughout such year or portion thereof, or, if
there
has been a failure to fulfill any such obligation in any material respect,
specifying each such failure known to such officer and the nature and status
thereof. The Custodian, in its capacity as such, shall not be required to
deliver such Officer’s Certificate.
The
Master Servicer shall include all annual statements of compliance received
by it
from each Servicer with its own annual statement of compliance to be submitted
to the Trust Administrator pursuant to this Section.
In
the
event the Servicer, the Master Servicer, the Trust Administrator or any
Sub-Servicer subject to Item 1108(a)(2) of Regulation AB engaged by any such
party is terminated or resigns pursuant to the terms of this Agreement, or
any
applicable agreement in the case of a Sub-Servicer subject to Item 1108(a)(2)
of
Regulation AB, as the case may be, such party shall provide an Officer’s
Certificate pursuant to this Section 3.20 or the relevant section of such
other
applicable agreement, as the case may be, notwithstanding any such termination,
assignment or resignation.
Failure
of the Servicer to timely comply with this Section 3.20 shall be deemed a
Servicer Event of Default, and upon receipt of written notice from the Trust
Administrator of such Servicer Event of Default, the Trustee or the Master
Servicer, as applicable, may at the direction of the Depositor, in addition
to
whatever rights the Trustee or the Master Servicer, as applicable, may have
under this Agreement and at law or in equity or to damages, including injunctive
relief and specific performance, upon notice immediately terminate (as provided
in Section 7.01(a)) all the rights and obligations of the Servicer under
this
Agreement and in and to the Mortgage Loans and the proceeds thereof without
compensating the Servicer for the same (other than the Servicer’s rights to
reimbursement of unreimbursed Advances and Servicing Advances and accrued
and
unpaid Servicing Fees in the manner provided in this Agreement). This paragraph
shall supersede any other provision in this Agreement or any other agreement
to
the contrary.
Each
of
the Servicer, the Master Servicer and the Trust Administrator (each, an
“Indemnifying Party”) shall indemnify and hold harmless the Depositor, the
Master Servicer, the Trust Administrator and their officers, directors and
Affiliates, as applicable, from and against any actual losses, damages,
penalties, fines, forfeitures, reasonable and necessary legal fees and related
costs, judgments and other costs and expenses that such Person may sustain
based
upon a breach of the obligations of such Indemnifying Party under this Section
3.20.
| SECTION 3.21. |
Assessments
of Compliance and Attestation
Reports.
|
(a) By
March
15th
(with no
cure period) of each calendar year during which a Form 10-K is required to
be
filed pursuant to Section 4.06 hereunder, commencing in March 2007, the
Servicer, the Master Servicer, the Trust Administrator and the Custodian
(if a
party to this Agreement, or otherwise pursuant to the Custodial Agreement),
each
at its own expense, shall furnish or otherwise make available, and each such
party shall cause any Servicing Function Participant engaged by it to furnish,
each at its own expense, to the Trust Administrator (and the Trust Administrator
shall furnish or otherwise make available to the Depositor), a report on
an
assessment of compliance with the Relevant Servicing Criteria that contains
(A)
a statement by such party of its responsibility for assessing compliance
with
the Relevant Servicing Criteria, (B) a statement that such party used the
Relevant Servicing Criteria to assess compliance with the Relevant Servicing
Criteria, (C) such party’s assessment of compliance with the Relevant Servicing
Criteria as of and for the fiscal year covered by the Form 10-K required
to be
filed pursuant to Section 4.06, including, if there has been any material
instance of noncompliance with the Relevant Servicing Criteria, a discussion
of
each such failure and the nature and status thereof, and (D) a statement
that a
registered public accounting firm has issued an attestation report on such
party’s assessment of compliance with the Relevant Servicing Criteria as of and
for such period (the “Attestation Report”). Any Servicing Function Participant,
shall deliver such assessment of compliance only for so long as the Trust
is
subject to the Exchange Act reporting requirements.
Promptly
after receipt of each such report on assessment of compliance, (i) the Depositor
shall review each such report and, if applicable, consult with the Servicer,
the
Master Servicer, the Trust Administrator and the Custodian (if
a
party to this Agreement, or otherwise pursuant to the Custodial
Agreement),
and any
Servicing Function Participant engaged by such parties, as to the nature
of any
material instance of noncompliance with the Relevant Servicing Criteria by
each
such party, and (ii) the Trust Administrator shall confirm that the assessments,
taken as a whole, address all of the Servicing Criteria and taken individually
address the Relevant Servicing Criteria for each party as set forth on Exhibit
O
and notify the Depositor of any exceptions.
The
Master Servicer shall include all annual reports on assessment of compliance
received by it from the Servicers with its own assessment of compliance to
be
submitted to the Trust Administrator pursuant to this Section.
In
the
event the Servicer, the Master Servicer, the Trust Administrator, the Custodian
(if a party to this Agreement, or otherwise pursuant to the Custodial
Agreement), or any Servicing Function Participant engaged by any such party
is
terminated, assigns its rights and obligations under, or resigns pursuant
to,
the terms of this Agreement, or any other applicable agreement, as the case
may
be, such party shall provide a report on assessment of compliance pursuant
to
this Section 3.21, or the relevant section of such other applicable agreement,
notwithstanding any such termination, assignment or resignation.
(b) By
March
15th
(with no
cure period) of each year, commencing in March 2007, the Servicer, the Master
Servicer, the Trust Administrator and the Custodian (if a party to this
Agreement, or otherwise pursuant to the Custodial Agreement), each at its
own
expense, shall cause, and each such party shall cause any Servicing Function
Participant engaged by it to cause, each at its own expense, a registered
public
accounting firm (which may also render other services to the Servicer, the
Master Servicer, the Trust Administrator, the Custodian, or such other Servicing
Function Participants, as the case may be) and that is a member of the American
Institute of Certified Public Accountants to furnish an attestation report
to
the Trust Administrator and the Depositor, to the effect that (i) it has
obtained a representation regarding certain matters from the management of
such
party, which includes an assertion that such party has complied with the
Relevant Servicing Criteria, and (ii) on the basis of an examination conducted
by such firm in accordance with standards for attestation engagements issued
or
adopted by the Public Company Accounting Oversight Board, it is expressing
an
opinion as to whether such party’s compliance with the Relevant Servicing
Criteria was fairly stated in all material respects, or it cannot express
an
overall opinion regarding such party’s assessment of compliance with the
Relevant Servicing Criteria. In the event that an overall opinion cannot
be
expressed, such registered public accounting firm shall state in such report
why
it was unable to express such an opinion. Such report must be available for
general use and not contain restricted use language.
Promptly
after receipt of each such assessment of compliance and attestation report,
the
Trust Administrator shall confirm that each assessment submitted pursuant
to
Section 3.21(a) is coupled with an attestation meeting the requirements of
this
Section and notify the Depositor of any exceptions.
The
Master Servicer shall include each such attestation furnished to it by the
Servicers with its own attestation to be submitted to the Trust Administrator
pursuant to this Section.
In
the
event the Servicer, the Master Servicer, the Trust Administrator, the Custodian
(if a party to this Agreement, or otherwise pursuant to the Custodial
Agreement), or any Servicing Function Participant engaged by any such party,
is
terminated, assigns its rights and duties under, or resigns pursuant to the
terms of, this Agreement, or any applicable custodial agreement or sub-servicing
agreement, as the case may be, such party shall cause a registered public
accounting firm to provide an attestation pursuant to this Section 3.21(b),
or
the relevant section of such other applicable agreement, notwithstanding
any
such termination, assignment or resignation.
(c) Failure
of the Servicer to timely comply with this Section 3.21 shall be deemed a
Servicer Event of Default, and upon written receipt of notice (which notice
may
be delivered electronically) from the Trust Administrator of such Servicer
Event
of Default, the Trustee or the Master Servicer, as applicable, at the direction
of the Depositor may, in addition to whatever rights the Trustee or the Master
Servicer, as applicable, may have under this Agreement and at law or in equity,
including injunctive relief and specific performance, upon notice immediately
terminate (as provided in Section 7.01(a)) all the rights and obligations
of the
Servicer under this Agreement and in and to the Mortgage Loans and the proceeds
thereof without compensating the Servicer for the same (other than the
Servicer’s rights to reimbursement of unreimbursed Advances and Servicing
Advances and accrued and unpaid Servicing Fees in the manner provided in
this
Agreement). This paragraph shall supersede any other provision in this Agreement
or any other agreement to the contrary.
Each
of
the Servicer, the Master Servicer, the Trust Administrator and the Custodian
(if
a party to this Agreement, or otherwise pursuant to the Custodial Agreement)
shall indemnify and hold harmless the Depositor, the Master Servicer and
the
Trust Administrator and its respective officers, directors and Affiliates
from
and against any actual losses, damages, penalties, fines, forfeitures,
reasonable and necessary legal fees and related costs, judgments and other
costs
and expenses that such Person may sustain based upon a breach of the obligations
of such Indemnifying Party under this Section 3.21.
The
parties hereto acknowledge that any duties or actions of Deutsche Bank National
Trust Company as Custodian are subject to the terms and provisions of the
Custodial Agreement.
If
the
indemnifications provided for herein are unavailable or insufficient to hold
harmless any indemnified party, then the indemnifying party agrees that it
shall
contribute to the amount paid or payable by such indemnified party as a result
of any claims, losses, damages or liabilities incurred by such indemnified
party
in such proportion as is appropriate to reflect the relative fault of such
indemnified party on the one hand and the indemnifying party on the other.
This
indemnification shall survive the termination of this Agreement or the
termination of the indemnifying party.
| SECTION 3.22. |
Access
to Certain Documentation.
|
The
Servicer shall provide to the Office of the Controller of the Currency, the
Office of Thrift Supervision, the FDIC, and any other federal or state banking
or insurance regulatory authority that may exercise authority over any
Certificateholder, access to the documentation regarding the Mortgage Loans
required by applicable laws and regulations. Such access shall be afforded
without charge, but only upon reasonable request and during normal business
hours at the offices of the Servicer designated by it. In addition, access
to
the documentation regarding the Mortgage Loans required by applicable laws
and
regulations will be provided to such Certificateholder, the Trustee, the
Trust
Administrator, the Master Servicer and to any Person identified to the Servicer
as a prospective transferee of a Certificate subject to the execution of
a
confidentiality agreement in form and substance satisfactory to the Servicer,
upon reasonable request during normal business hours at the offices of the
Servicer designated by it at the expense of the Person requesting such access.
Nothing in this Section 3.22 shall derogate from the obligation of any such
party to observe any applicable law prohibiting disclosure of information
regarding the Mortgagors and the failure of any such party to provide access
as
provided in this Section as a result of such obligation shall not constitute
a
breach of this Section 3.22.
Nothing
in this Section 3.22 shall require the Servicer to collect, create, collate
or
otherwise generate any information that it does not generate in its usual
course
of business. The Servicer shall not be required to make copies of or ship
documents to any party unless provisions have been made for the reimbursement
of
the costs thereof.
| SECTION 3.23. |
Title,
Management and Disposition of REO
Property.
|
(a) In
the
event that title to an REO Property is acquired in foreclosure or by deed
in
lieu of foreclosure, the deed or certificate of sale shall be taken (pursuant
to
a limited power of attorney to be provided by the Trustee to the Servicer)
in
the name of the Trustee or a nominee thereof, on behalf of the
Certificateholders, or in the event the Trustee or a nominee thereof is not
authorized or permitted to hold title to real property in the state where
the
REO Property is located, or would be adversely affected under the “doing
business” or tax laws of such state by so holding title, the deed or certificate
of sale shall be taken in the name of such Person or Persons as shall be
consistent with an Opinion of Counsel obtained by the Servicer (the cost
of
which shall constitute a Servicing Advance) from an attorney duly licensed
to
practice law in the state where the REO Property is located. Any Person or
Persons holding such title other than the Trustee shall acknowledge in writing
that such title is being held as nominee for the benefit of the Trustee.
The
Trustee’s name shall be placed on the title to such REO Property solely as the
Trustee hereunder and not in its individual capacity. The Servicer shall
ensure
that the title to such REO Property references this Agreement and the Trustee’s
capacity hereunder. The Servicer, on behalf of REMIC I, shall sell any REO
Property as soon as practicable and in any event no later than the end of
the
third full taxable year after the taxable year in which such REMIC acquires
ownership of such REO Property for purposes of Section 860G(a)(8) of the
Code or
request from the Internal Revenue Service, no later than 60 days before the
day
on which the three-year grace period would otherwise expire, an extension
of
such three-year period, unless the Servicer shall have delivered to the Trust
Administrator, the Trustee and the NIMS Insurer an Opinion of Counsel acceptable
to the NIMS Insurer and addressed to the Trust Administrator, the Trustee,
the
NIMS Insurer and the Depositor, to the effect that the holding by the REMIC
of
such REO Property subsequent to three years after its acquisition will not
result in the imposition on the REMIC of taxes on “prohibited transactions”
thereof, as defined in Section 860F of the Code, or cause any of the REMICs
created hereunder to fail to qualify as a REMIC under Federal law at any
time
that any Certificates are outstanding. The Servicer shall manage, conserve,
protect and operate each REO Property for the Certificateholders solely for
the
purpose of its prompt disposition and sale in a manner which does not cause
such
REO Property to fail to qualify as “foreclosure property” within the meaning of
Section 860G(a)(8) of the Code or result in the receipt by any of the REMICs
created hereunder of any “income from non-permitted assets” within the meaning
of Section 860F(a)(2)(B) of the Code, or any “net income from foreclosure
property” which is subject to taxation under the REMIC Provisions.
(b) The
Servicer shall separately account for all funds collected and received in
connection with the operation of any REO Property and shall establish and
maintain, or cause to be established and maintained, with respect to REO
Properties an account held in trust for the Trustee for the benefit of the
Certificateholders (the “REO Account”), which shall be an Eligible Account. The
Servicer shall be permitted to allow the Collection Account to serve as the
REO
Account, subject to separate ledgers for each REO Property. The Servicer
shall
be entitled to retain or withdraw any interest income paid on funds deposited
in
the REO Account.
(c) The
Servicer shall have full power and authority, subject only to the specific
requirements and prohibitions of this Agreement, to do any and all things
in
connection with any REO Property as are consistent with the manner in which
the
Servicer manages and operates similar property owned by the Servicer or any
of
its Affiliates, all on such terms and for such period (subject to the
requirement of prompt disposition set forth in Section 3.23(a)) as the Servicer
deems to be in the best interests of Certificateholders. In connection
therewith, the Servicer shall deposit, or cause to be deposited in the clearing
account in which it customarily deposits payments and collections on mortgage
loans in connection with its mortgage loan servicing activities on a daily
basis, and in no event more than one Business Day after the Servicer’s receipt
thereof, and shall thereafter deposit in the REO Account, in no event more
than
two Business Days after the Servicer’s receipt thereof, all revenues received by
it with respect to an REO Property and shall withdraw therefrom funds necessary
for the proper operation, management and maintenance of such REO Property
including, without limitation:
(i) all
insurance premiums due and payable in respect of such REO Property;
(ii) all
real
estate taxes and assessments in respect of such REO Property that may result
in
the imposition of a lien thereon; and
(iii) all
costs
and expenses necessary to maintain, operate and dispose of such REO
Property.
To
the
extent that amounts on deposit in the REO Account with respect to an REO
Property are insufficient for the purposes set forth in clauses (i) through
(iii) above with respect to such REO Property, the Servicer shall advance
from
its own funds such amount as is necessary for such purposes if, but only
if, the
Servicer would make such advances if the Servicer owned the REO Property
and if
in the Servicer’s judgment, the payment of such amounts will be recoverable from
the rental or sale of the REO Property.
Notwithstanding
the foregoing, none of the Servicer, the Trust Administrator or the Trustee
shall:
(a) authorize
the Trust Fund to enter into, renew or extend any New Lease with respect to any
REO Property, if the New Lease by its terms will give rise to any income
that
does not constitute Rents from Real Property;
(b) authorize
any amount to be received or accrued under any New Lease other than amounts
that
will constitute Rents from Real Property;
(c) authorize
any construction on any REO Property, other than the completion of a building
or
other improvement thereon, and then only if more than ten percent of the
construction of such building or other improvement was completed before default
on the related Mortgage Loan became imminent, all within the meaning of Section
856(e)(4)(B) of the Code; or
(d) authorize
any Person to Directly Operate any REO Property on any date more than 90
days
after its date of acquisition by the Trust Fund;
unless,
in any such case, the Servicer has obtained an Opinion of Counsel, provided
to
the Trust Administrator, the Master Servicer and the NIMS Insurer, to the
effect
that such action will not cause such REO Property to fail to qualify as
“foreclosure property” within the meaning of Section 860G(a)(8) of the Code at
any time that it is held by the REMIC, in which case the Servicer may take
such
actions as are specified in such Opinion of Counsel.
The
Servicer may contract with any Independent Contractor for the operation and
management of any REO Property; provided that:
(i) the
terms
and conditions of any such contract shall not be inconsistent
herewith;
(ii) any
such
contract shall require, or shall be administered to require, that the
Independent Contractor pay all costs and expenses incurred in connection
with
the operation and management of such REO Property, including those listed
above
and remit all related revenues (net of such costs and expenses) to the Servicer
as soon as practicable, but in no event later than thirty days following
the
receipt thereof by such Independent Contractor;
(iii) none
of
the provisions of this Section 3.23(c) relating to any such contract or to
actions taken through any such Independent Contractor shall be deemed to
relieve
the Servicer of any of its duties and obligations to the Trustee on behalf
of
the Certificateholders with respect to the operation and management of any
such
REO Property; and
(iv) the
Servicer shall be obligated with respect thereto to the same extent as if
it
alone were performing all duties and obligations in connection with the
operation and management of such REO Property.
The
Servicer shall be entitled to enter into any agreement with any Independent
Contractor performing services for it related to its duties and obligations
hereunder for indemnification of the Servicer by such Independent Contractor,
and nothing in this Agreement shall be deemed to limit or modify such
indemnification. The Servicer shall be solely liable for all fees owed by
it to
any such Independent Contractor, irrespective of whether the Servicer’s
compensation pursuant to Section 3.18 is sufficient to pay such fees; provided,
however, that to the extent that any payments made by such Independent
Contractor would constitute Servicing Advances if made by the Servicer, such
amounts shall be reimbursable as Servicing Advances made by the
Servicer.
(d) In
addition to the withdrawals permitted under Section 3.23(c), the Servicer
may
from time to time make withdrawals from the REO Account for any REO Property:
(i) to pay itself or any Sub-Servicer unpaid Servicing Fees in respect of
the
related Mortgage Loan; and (ii) to reimburse itself or any Sub-Servicer for
unreimbursed Servicing Advances and Advances made in respect of such REO
Property or the related Mortgage Loan. On the Servicer Remittance Date, the
Servicer shall withdraw from each REO Account maintained by it and deposit
into
the Distribution Account in accordance with Section 3.10(d)(ii), for
distribution on the related Distribution Date in accordance with Section
4.01,
the income from the related REO Property received during the prior calendar
month, net of any withdrawals made pursuant to Section 3.23(c) or this Section
3.23(d).
(e) Subject
to the time constraints set forth in Section 3.23(a), each REO Disposition
shall
be carried out by the Servicer in a manner, at such price and upon such terms
and conditions as shall be normal and usual in the servicing standard set
forth
in Section 3.01.
(f) The
proceeds from the REO Disposition, net of any amount required by law to be
remitted to the Mortgagor under the related Mortgage Loan and net of any
payment
or reimbursement to the Servicer or any Sub-Servicer as provided above, shall
be
deposited in the Distribution Account in accordance with Section 3.10(d)(ii)
on
the Servicer Remittance Date in the month following the receipt thereof for
distribution on the related Distribution Date in accordance with Section
4.01.
Any REO Disposition shall be for cash only (unless changes in the REMIC
Provisions made subsequent to the Startup Day allow a sale for other
consideration).
(g) The
Servicer shall file information returns with respect to the receipt of mortgage
interest received in a trade or business, reports of foreclosures and
abandonments of any Mortgaged Property and cancellation of indebtedness income
with respect to any Mortgaged Property as required by Sections 6050H, 6050J
and
6050P of the Code, respectively. Such reports shall be in form and substance
sufficient to meet the reporting requirements imposed by such Sections 6050H,
6050J and 6050P of the Code.
| SECTION 3.24. |
Obligations
of the Servicer in Respect of Prepayment Interest
Shortfalls.
|
Not
later
than 2:00 p.m. New York time on each Servicer Remittance Date, the Servicer
shall remit to the Distribution Account an amount (“Compensating Interest”)
equal to the lesser of (A) the aggregate of the Prepayment Interest Shortfalls
for the related Distribution Date and (B) its aggregate Servicing Fee received
in the related Due Period. The Servicer shall not have the right to
reimbursement for any amounts remitted to the Trust Administrator in respect
of
Compensating Interest. Such amounts so remitted shall be included in the
Available Funds and distributed therewith on the next Distribution Date.
The
Servicer shall not be obligated to pay Compensating Interest with respect
to
Relief Act Interest Shortfalls or Principal Prepayments in full occurring
from
the Cut-off Date through December 15, 2006.
| SECTION 3.25. |
Obligations
of the Servicer in Respect of Mortgage Rates and Monthly
Payments.
|
In
the
event that a shortfall in any collection on or liability with respect to
the
Mortgage Loans in the aggregate results from or is attributable to adjustments
to Mortgage Rates, Monthly Payments or Stated Principal Balances that were
made
by the Servicer in a manner not consistent with the terms of the related
Mortgage Note and this Agreement, the Servicer, upon discovery or receipt
of
notice thereof, immediately shall deposit in the Collection Account from
its own
funds the amount of any such shortfall and shall indemnify and hold harmless
the
Trust Fund, the Trustee, the Trust Administrator, the Depositor and any
successor servicer in respect of any such liability. Such indemnities shall
survive the termination or discharge of this Agreement. Notwithstanding the
foregoing, this Section 3.25 shall not limit the ability of the Servicer
to seek
recovery of any such amounts from the related Mortgagor under the terms of
the
related Mortgage Note, as permitted by law.
| SECTION 3.26. |
Advance
Facility
|
The
Servicer is hereby authorized to enter into a financing or other facility
(any
such arrangement, an “Advance Facility”) under which (1) the Servicer sells,
assigns or pledges to another Person (together with such Person’s successors and
assigns, an “Advancing Person”) the Servicer’s rights under this Agreement to be
reimbursed for any Advances or Servicing Advances and/or (2) an Advancing
Person
agrees to fund some or all Advances and/or Servicing Advances required to
be
made by the Servicer pursuant to this Agreement. No consent of the Depositor,
the Trustee, the Trust Administrator, the Certificateholders or any other
party
shall be required before the Servicer may enter into an Advance Facility.
The
Servicer shall notify each other party to this Agreement prior to or promptly
after entering into or terminating any Advance Facility. Notwithstanding
the
existence of any Advance Facility under which an Advancing Person agrees
to fund
Advances and/or Servicing Advances on the Servicer’s behalf, the Servicer shall
remain obligated pursuant to this Agreement to make Advances and Servicing
Advances pursuant to and as required by this Agreement. If the Servicer enters
into an Advance Facility, and for so long as an Advancing Person remains
entitled to receive reimbursement for any Advances including Nonrecoverable
Advances (“Advance Reimbursement Amounts”) and/or Servicing Advances including
Nonrecoverable Advances (“Servicing Advance Reimbursement Amounts” and together
with Advance Reimbursement Amounts, “Reimbursement Amounts”) (in each case to
the extent such type of Reimbursement Amount is included in the Advance
Facility), as applicable, pursuant to this Agreement, then, the Servicer
shall
identify such Reimbursement Amounts consistent with the reimbursement rights
set
forth in Section 3.11(a)(ii), (iii), (vi) and (vii) and remit such Reimbursement
Amounts in accordance with Section 3.10(b) or otherwise in accordance with
the
documentation establishing the Advance Facility to such Advancing Person
or to a
trustee, agent or custodian (an “Advance Facility Trustee”) designated by such
Advancing Person. Notwithstanding anything to the contrary herein, in no
event
shall Advance Reimbursement Amounts or Servicing Advance Reimbursement Amounts
be included in the Available Funds or distributed to
Certificateholders.
Reimbursement
Amounts shall consist solely of amounts in respect of Advances and/or Servicing
Advances made with respect to the Mortgage Loans for which the Servicer would
be
permitted to reimburse itself in accordance with this Agreement, assuming
the
Servicer or the Advancing Person had made the related Advance(s) and/or
Servicing Advance(s). Notwithstanding the foregoing, except with respect
to
reimbursement of Nonrecoverable Advances as set forth in this Agreement,
no
Person shall be entitled to reimbursement from funds held in the Collection
Account for future distribution to Certificateholders pursuant to this
Agreement. None of the Depositor, the Trust Administrator or the Trustee
shall
have any duty or liability with respect to the calculation or payment of
any
Reimbursement Amount, nor shall the Depositor, the Master Servicer, the Trust
Administrator or the Trustee have any responsibility to track or monitor
the
administration of the Advance Facility or the payment of Reimbursement Amounts
to the related Advancing Person or Advance Facility Trustee. The Servicer
shall
maintain and provide to any successor servicer and (upon request) the Trust
Administrator a detailed accounting on a loan by loan basis as to amounts
advanced by, sold, pledged or assigned to, and reimbursed to any Advancing
Person. The successor servicer shall be entitled to rely on any such information
provided by the predecessor servicer, and the successor servicer shall not
be
liable for any errors in such information.
An
Advancing Person who receives an assignment or pledge of the rights to be
reimbursed for Advances and/or Servicing Advances, and/or whose obligations
hereunder are limited to the funding or purchase of Advances and/or Servicing
Advances shall not be required to meet the criteria for qualification of
a
subservicer set forth in this Agreement.
Reimbursement
Amounts distributed with respect to each Mortgage Loan shall be allocated
to
outstanding unreimbursed Advances or Servicing Advances (as the case may
be)
made with respect to that Mortgage Loan on a “first in, first out” (FIFO) basis.
Such documentation shall also require the Servicer to provide to the related
Advancing Person or Advance Facility Trustee loan by loan information with
respect to each Reimbursement Amount distributed to such Advancing Person
or
Advance Facility Trustee, to enable the Advancing Person or Advance Facility
Trustee to make the FIFO allocation of each Reimbursement Amount with respect
to
each Mortgage Loan. The Servicer shall remain entitled to be reimbursed for
all
Advances and Servicing Advances funded by the Servicer to the extent the
related
rights to be reimbursed therefor have not been sold, assigned or pledged
to an
Advancing Person.
The
Servicer shall indemnify the Depositor, the Trustee, the Master Servicer,
the
Trust Administrator, any successor servicer and the Trust Fund resulting
from
any claim by the related Advancing Person arising out of the Advance Facility,
except to the extent that such claim, loss, liability or damage resulted
from or
arose out of negligence, recklessness or willful misconduct or breach of
its
duties hereunder on the part of the Depositor, the Trust Administrator, the
Trustee or any successor servicer.
Any
amendment to this Section 3.26 or to any other provision of this Agreement
that
may be necessary or appropriate to effect the terms of an Advance Facility
as
described generally in this Section 3.26, including amendments to add provisions
relating to a successor servicer, may be entered into by the Trustee, the
Trust
Administrator, the Depositor and the Servicer without the consent of any
Certificateholder, provided such amendment complies with Section 11.01 hereof.
All reasonable costs and expenses (including attorneys’ fees) of each party
hereto of any such amendment shall be borne solely by the Servicer. Prior
to
entering into an Advance Facility, the Servicer shall notify the Advancing
Person in writing that: (a) the Advances and/or Servicing Advances purchased,
financed by and/or pledged to the Advancing Person are obligations owed to
the
Servicer on a non-recourse basis payable only from the cash flows and proceeds
received under this Agreement for reimbursement of Advances and/or Servicing
Advances only to the extent provided herein, and the Trustee, the Trust
Administrator and the Trust are not otherwise obligated or liable to repay
any
Advances and/or Servicing Advances financed by the Advancing Person; (b)
the
Servicer will be responsible for remitting to the Advancing Person the
applicable amounts collected by it as reimbursement for Advances and/or
Servicing Advances funded by the Advancing Person, subject to the restrictions
and priorities created in this Agreement; and (c) neither the Trustee nor
the
Trust Administrator shall have any responsibility to track or monitor the
administration of the Advance Facility between the Servicer and the Advancing
Person.
| SECTION 3.27. |
Solicitations.
|
The
Servicer shall not take any action or cause any action to be taken by any
of its
employees, agents or Affiliates, or by any independent contractors acting
on the
Servicer’s behalf, to solicit any borrower in any manner whatsoever, including
but not limited to, soliciting a borrower to prepay or refinance a Mortgage
Loan. Furthermore, neither the Servicer nor any of its Affiliates shall directly
or indirectly provide information to any third party for purposes of soliciting
the borrowers related to the Mortgage Loans. It is understood that promotions
undertaken by the Servicer or its Affiliates which are directed to the general
public at large (i.e., newspaper advertisements, radio or T.V. ads, etc.)
and
not specifically directed to the borrowers related to the Mortgage Loans
shall
not constitute a breach of this Section 3.27. From and after the Closing
Date,
Servicer hereby agrees that Servicer will not take any action or cause any
action to be taken by any of its agents or Affiliates, or by any independent
contractors or independent mortgage brokerage companies on the Servicer’s
behalf, to personally, by telephone or mail, solicit the borrower under any
Mortgage Loan for the purpose of refinancing such Mortgage Loan; provided,
that
Servicer may solicit any borrower for whom Servicer has received a request
for
verification of mortgage, a request for demand for payoff, a borrower initiated
written or verbal communication indicating a desire to prepay the related
Mortgage Loan, or the borrower initiates a title search, provided further,
it is
understood and agreed that promotions undertaken by the Servicer or any of
its
affiliates which concern optional insurance products or other additional
products shall not constitute solicitation nor is the Servicer prohibited
from
responding to unsolicited requests or inquiries made by a borrower or an
agent
of a borrower. Notwithstanding the foregoing, the following solicitations,
if
undertaken by the Servicer or any Affiliate of the Servicer, shall not be
prohibited: (i) solicitations or promotions that are directed to the general
public at large, including, without limitation, mass mailings based on mailing
lists and newspaper, radio, television and other mass media advertisements
and
(ii) borrower messages included on, and statement inserts provided with,
the
monthly statements sent to borrowers; provided, however, that similar messages
and inserts are sent to all other borrowers of similar type mortgage loans
serviced by the Servicer and such Affiliates, including, but not limited
to,
those mortgage loans serviced for the Servicer’s and/or such Affiliates own
account; and (iii) solicitations made as a part of a campaign directed to
borrowers with mortgage loans meeting certain defined parameters (other than
parameters relating to the borrowers or the Mortgage Loans specifically),
provided, that such solicitations are made to all borrowers of mortgage loans
serviced by the Servicer and such Affiliates with respect to mortgage loans
meeting such defined parameters, including, but not limited to, those mortgage
loans serviced for the Servicer’s and/or such Affiliates own
account.
ARTICLE
IIIA
ADMINISTRATION
AND SERVICING
OF
THE
MORTGAGE LOANS
| SECTION 3A.01. |
Master
Servicer to Act as Master Servicer
|
The
Master Servicer shall supervise, monitor and oversee the obligation of the
Servicer to service and administer the Mortgage Loans in accordance with
the
terms of this Agreement and shall have full power and authority to do any
and
all things which it may deem necessary or desirable in connection with such
master servicing and administration. In performing its obligations hereunder,
the Master Servicer shall act in a manner consistent with Accepted Master
Servicing Practices. Furthermore, the Master Servicer shall oversee and consult
with the Servicer as reasonably necessary from time-to-time to carry out
the
Master Servicer’s obligations hereunder, shall receive, review and evaluate all
reports, information and other data provided to the Master Servicer by the
Servicer and shall cause the Servicer to perform and observe the covenants,
obligations and conditions to be performed or observed by the Servicer under
this Agreement. The Master Servicer shall independently monitor the Servicer’s
servicing activities with respect to each Mortgage Loan, reconcile the results
of such monitoring with such information provided in the previous sentence
on a
monthly basis and coordinate corrective adjustments to the Servicer’s and Master
Servicer’s records, and based on such reconciled and corrected information, the
Master Servicer shall provide such information to the Trust Administrator
as
shall be necessary in order for it to prepare the statements specified in
Section 4.02, and prepare any other information and statements required to
be forwarded by the Master Servicer hereunder. The Master Servicer shall
reconcile the results of its Mortgage Loan monitoring with the actual
remittances of the Servicer to the Collection Account pursuant to Section
3.10.
The
Trustee shall furnish the Servicer and the Master Servicer with any powers
of
attorney and other documents in form as provided to it necessary or appropriate
to enable the Servicer and the Master Servicer to service and administer
the
Mortgage Loans and REO Properties.
The
Trustee and the Trust Administrator shall provide access to the records and
documentation in possession of the Trustee or the Trust Administrator, as
applicable, regarding the Mortgage Loans and REO Properties and the servicing
thereof to the Certificateholders, the FDIC, and the supervisory agents and
examiners of the FDIC, such access being afforded only upon reasonable prior
written request and during normal business hours at the office of the Trustee
or
the Trust Administrator, as applicable; provided, however, that, unless
otherwise required by law, neither the Trustee nor the Trust Administrator
shall
be required to provide access to such records and documentation if the provision
thereof would violate the legal right to privacy of any Mortgagor. The Trustee
and the Trust Administrator shall allow representatives of the above entities
to
photocopy any of the records and documentation and shall provide equipment
for
that purpose at a charge that covers the Trustee’s or Trust Administrator’s, as
applicable, actual costs.
The
Trustee shall execute and deliver to the Servicer and the Master Servicer
any
court pleadings, requests for trustee’s sale or other documents necessary or
desirable to (i) the foreclosure or trustee’s sale with respect to a Mortgaged
Property; (ii) any legal action brought to obtain judgment against any Mortgagor
on the Mortgage Note or Security Instrument; (iii) obtain a deficiency judgment
against the Mortgagor; or (iv) enforce any other rights or remedies provided
by
the Mortgage Note or Mortgage or otherwise available at law or
equity.
| SECTION 3A.02. |
[Reserved].
|
| SECTION 3A.03. |
Monitoring
of Servicer.
|
The
Master Servicer shall be responsible for reporting to the Trustee, the Trust
Administrator and the Depositor the non-compliance by the Servicer with its
duties under this Agreement. In the review of the Servicer’s activities, the
Master Servicer may rely upon an Officers’ Certificate of the Servicer (or
similar document signed by a Servicing Officer of the Servicer) with regard
to
the Servicer’s compliance with the terms of this Agreement. In the event that
the Master Servicer, in its good faith judgment, determines that the Servicer
should be terminated in accordance with the terms hereof, or that a notice
should be sent pursuant to the terms hereof with respect to the occurrence
of an
event that, unless cured, would constitute grounds for such termination,
the
Master Servicer shall notify the Depositor, the Trust Administrator and the
Trustee thereof and the Master Servicer shall issue such notice or take such
other action as it deems appropriate.
The
Master Servicer (or if the Master Servicer is the Servicer, the Trustee),
for
the benefit of the Certificateholders, shall enforce the obligations of the
Servicer under this Agreement, and shall, in the event that it receives notice
and confirms that the Servicer has failed to perform its obligations in
accordance with this Agreement, subject to the preceding paragraph, terminate
the rights and obligations of the Servicer hereunder and in accordance with
the
provisions of Article VII of this Agreement and act as Servicer of the Mortgage
Loans or appoint a successor servicer; provided, however, it is understood
and
acknowledged by the parties hereto that there will be a period of transition
(not to exceed 90 days) before the actual servicing functions can be fully
transferred to such successor servicer. Such enforcement, including, without
limitation, the legal prosecution of claims and the pursuit of other appropriate
remedies, shall be in such form and carried out to such an extent and at
such
time as the Master Servicer or Trustee, as applicable, in its good faith
business judgment, would require were it the owner of the Mortgage Loans.
The
Master Servicer or the Trustee, as applicable, shall pay the costs of such
enforcement at its own expense, provided that the Master Servicer or the
Trustee, as applicable, shall not be required to prosecute or defend any
legal
action except to the extent that the Master Servicer or the Trustee, as
applicable, shall have received reasonable indemnity for its costs and expenses
in pursuing such action.
To
the
extent that the costs and expenses of the Master Servicer or Trustee, as
applicable, related to any termination of the Servicer, appointment of a
successor servicer or the transfer and assumption of servicing by the Master
Servicer or the Trustee, as applicable, with respect to this Agreement
(including, without limitation, (i) all legal costs and expenses and all
due
diligence costs and expenses associated with an evaluation of the potential
termination of the Servicer as a result of a Servicer Event of Default and
(ii)
all costs and expenses associated with the complete transfer of servicing,
including all servicing files and all servicing data and the completion,
correction or manipulation of such servicing data as may be required by the
successor servicer to correct any errors or insufficiencies in the servicing
data or otherwise to enable the successor servicer to service the Mortgage
Loans
in accordance with this Agreement) are not fully and timely reimbursed by
the
terminated Servicer, the Master Servicer or the Trustee, as applicable, shall
be
entitled to reimbursement of such costs and expenses from the Distribution
Account.
The
Master Servicer (or if the Master Servicer is the Servicer, the Trustee)
shall,
upon receipt from the Servicer, the Master Servicer or the Trust Administrator,
of notice of any failure of the Servicer to comply with the remittance
requirements and other obligations set forth in this Agreement, enforce such
obligations.
If
the
Master Servicer or the Trustee, as applicable, acts as Servicer, it will
not
assume liability for the representations and warranties of the Servicer that
it
replaces.
| SECTION 3A.04. |
Fidelity
Bond
|
The
Master Servicer, at its expense, shall maintain in effect a blanket fidelity
bond and an errors and omissions insurance policy, affording coverage with
respect to all directors, officers, employees and other Persons acting on
such
Master Servicer’s behalf, and covering errors and omissions in the performance
of the Master Servicer’s obligations hereunder. The errors and omissions
insurance policy and the fidelity bond shall be in such form and amount
generally acceptable for entities serving as master servicer.
| SECTION 3A.05. |
Power
to Act; Procedures.
|
The
Master Servicer shall master service the Mortgage Loans and shall have full
power and authority, subject to the REMIC Provisions and the provisions of
Article X hereof, to do any and all things that it may deem necessary or
desirable in connection with the master servicing and administration of the
Mortgage Loans, including but not limited to the power and authority (i)
to
execute and deliver, on behalf of the Certificateholders and the Trustee,
customary consents or waivers and other instruments and documents, (ii) to
consent to transfers of any Mortgaged Property and assumptions of the Mortgage
Notes and related Mortgages, (iii) to collect any Insurance Proceeds and
Liquidation Proceeds, and (iv) to effectuate foreclosure or other conversion
of
the ownership of the Mortgaged Property securing any Mortgage Loan, in each
case, in accordance with the provisions of this Agreement; provided, however,
that the Master Servicer shall not (and, consistent with its responsibilities
under Article X, shall not permit any Servicer to) knowingly or intentionally
take any action, or fail to take (or fail to cause to be taken) any action
reasonably within its control and the scope of duties more specifically set
forth herein, that, under the REMIC Provisions, if taken or not taken, as
the
case may be, would cause the Trust REMIC to fail to qualify as a REMIC or
result
in the imposition of a tax upon the Trust Fund (including but not limited
to the
tax on prohibited transactions as defined in Section 860F(a)(2) of the Code
and the tax on contributions to a REMIC set forth in Section 860G(d) of the
Code) unless the Master Servicer has received an Opinion of Counsel (but
not at
the expense of the Master Servicer) to the effect that the contemplated action
would not cause any REMIC to fail to qualify as a REMIC or result in the
imposition of a tax upon any REMIC. The Trustee shall furnish the Master
Servicer or the Servicer, upon written request from a Servicing Officer,
with
any powers of attorney empowering the Master Servicer or the Servicer to
execute
and deliver instruments of satisfaction or cancellation, or of partial or
full
release or discharge, and to foreclose upon or otherwise liquidate Mortgaged
Property, and to appeal, prosecute or defend in any court action relating
to the
Mortgage Loans or the Mortgaged Property, in accordance with this Agreement,
and
the Trustee shall execute and deliver such other documents, as the Master
Servicer may request, to enable the Master Servicer to master service and
administer the Mortgage Loans and carry out its duties hereunder, in each
case
in accordance with Accepted Master Servicing Practices (and the Trustee shall
have no liability for misuse of any such powers of attorney by the Master
Servicer or the Servicer). If the Master Servicer or the Trustee has been
advised that it is likely that the laws of the state in which action is to
be
taken prohibit such action if taken in the name of the Trustee or that the
Trustee would be adversely affected under the “doing business” or tax laws of
such state if such action is taken in its name, the Master Servicer shall
join
with the Trustee in the appointment of a co-trustee pursuant to
Section 8.10 hereof. In the performance of its duties hereunder, the Master
Servicer shall be an independent contractor and shall not, except in those
instances where it is taking action in the name of the Trustee, be deemed
to be
the agent of the Trustee.
| SECTION 3A.06. |
Due
on Sale Clauses; Assumption
Agreements.
|
To
the
extent Mortgage Loans contain enforceable due-on-sale clauses, the Master
Servicer shall cause the Servicer to enforce such clauses in accordance with
this Agreement. If applicable law prohibits the enforcement of a due-on-sale
clause or such clause is otherwise not enforced in accordance with this
Agreement, and, as a consequence, a Mortgage Loan is assumed, the original
Mortgagor may be released from liability in accordance with this
Agreement.
| SECTION 3A.07. |
[Reserved].
|
| SECTION 3A.08. |
Documents,
Records and Funds in Possession of Master Servicer to be Held for
Trustee.
|
The
Master Servicer and the Servicer shall transmit to the Trustee (or the Custodian
on behalf of the Trustee) such documents and instruments coming into the
possession of the Master Servicer or the Servicer from time to time as are
required by the terms hereof to be delivered to the Trustee, the Trust
Administrator or the Custodian. Any funds received by the Master Servicer
or by
the Servicer in respect of any Mortgage Loan or which otherwise are collected
by
the Master Servicer or by the Servicer as Liquidation Proceeds or Insurance
Proceeds in respect of any Mortgage Loan shall be held for the benefit of
the
Trustee and the Certificateholders subject to the Master Servicer’s right to
retain or withdraw from the Distribution Account the Master Servicing
Compensation and other amounts provided in this Agreement, and to the right
of
the Servicer to retain its Servicing Fee and other amounts as provided in
this
Agreement. The Master Servicer shall, and subject to Section 3.22 shall cause
the Servicer to, provide access to information and documentation regarding
the
Mortgage Loans to the Trust Administrator, its agents and accountants at
any
time upon reasonable request and during normal business hours, and to
Certificateholders that are savings and loan associations, banks or insurance
companies, the Office of Thrift Supervision, the FDIC and the supervisory
agents
and examiners of such Office and Corporation or examiners of any other federal
or state banking or insurance regulatory authority if so required by applicable
regulations of the Office of Thrift Supervision or other regulatory authority,
such access to be afforded without charge but only upon reasonable request
in
writing and during normal business hours at the offices of the Master Servicer
designated by it. In fulfilling such a request the Master Servicer shall
not be
responsible for determining the sufficiency of such information.
All
Mortgage Files and funds collected or held by, or under the control of, the
Master Servicer or the Servicer, in respect of any Mortgage Loans, whether
from
the collection of principal and interest payments or from Liquidation Proceeds
or Insurance Proceeds, shall be held by the Servicer or the Master Servicer,
as
applicable, for and on behalf of the Trustee and the Certificateholders and
shall be and remain the sole and exclusive property of the Trustee; provided,
however, that the Master Servicer and the Servicer shall be entitled to setoff
against, and deduct from, any such funds any amounts that are properly due
and
payable to the Master Servicer or the Servicer under this
Agreement.
| SECTION 3A.09. |
Compensation
for the Master Servicer.
|
The
Master Servicer will be entitled all income and gain realized from any
investment of funds in the Distribution Account, pursuant to Section 3A.11
and Section 3A.12, for the performance of its activities hereunder (the
“Master Servicing Compensation”). Servicing compensation in the form of
assumption fees, if any, late payment charges, as collected, if any, or
otherwise shall be retained by the Servicer in accordance with Section 3.18.
The
Master Servicer shall be required to pay all expenses incurred by it in
connection with the performance of its duties hereunder and shall not be
entitled to reimbursement therefor except as provided in this
Agreement.
| SECTION 3A.10. |
Obligations
of the Master Servicer in Respect of Prepayment Interest
Shortfalls.
|
In
the
event of a Prepayment Interest Shortfall, the Master Servicer shall remit
to the
Trust Administrator, from its own funds and without right of reimbursement
(except as described below), not later than the related Distribution Date,
Compensating Interest in an amount equal to the lesser of (i) the aggregate
amounts in respect of Compensating Interest required to be paid by the Servicer
pursuant to Section 3.24 with respect to Prepayment Interest Shortfalls
attributable to Principal Prepayments in full on the Mortgage Loans for the
related Distribution Date and not so paid by the Servicer and (ii) the aggregate
compensation payable to the Master Servicer for the related collection period
under this Agreement. In the event the Master Servicer pays any amount in
respect of such Compensating Interest prior to the time it shall have succeeded
as successor servicer, the Master Servicer shall be subrogated to the Trust
Fund’s right to receive such amount from the Servicer. In the event the Trust
Fund receives from the Servicer all or any portion of amounts in respect
of
Compensating Interest required to be paid by the Servicer pursuant to Section
3.24, not so paid by the Servicer when required, and paid by the Master Servicer
pursuant to this Section 3A.10, then the Master Servicer may reimburse
itself for the amount of Compensating Interest paid by the Master Servicer
from
such receipts by the Trust Fund.
| SECTION 3A.11. |
Distribution
Account.
|
On
behalf
of the Trust Fund, the Trust Administrator shall establish and maintain one
or
more accounts (such account or accounts, the “Distribution Account”), held in
trust for the benefit of the Trustee and the Certificateholders. The
Distribution Account shall be an Eligible Account. The Master Servicer will
deposit in the Distribution Account as identified by the Master Servicer
and as
received by the Master Servicer, the following amounts:
(1) Any
amounts remitted to the Master Servicer by the Servicer from the Collection
Account;
(2) Any
Advances received from the Servicer or made by the Master Servicer or (if
the
Master Servicer is the Servicer) the Trustee (in each case in its capacity
as
successor servicer), and any payments of Compensating Interest received from
the
Servicer or made by the Master Servicer (unless, in the case of the Master
Servicer, such amounts are deposited by the Master Servicer directly into
the
Distribution Account);
(3) Any
Insurance Proceeds or Net Liquidation Proceeds received by or on behalf of
the
Master Servicer or which were not deposited in the Collection
Account;
(4)
Any
amounts required to be deposited with respect to losses on investments of
deposits in the Distribution Account; and
(5) Any
other
amounts received by or on behalf of the Master Servicer and required to be
deposited in the Distribution Account pursuant to this Agreement.
All
amounts deposited to the Distribution Account shall be held by the Master
Servicer in the name of the Trustee in trust for the benefit of the
Certificateholders in accordance with the terms and provisions of this
Agreement. The requirements for crediting the Distribution Account shall
be
exclusive, it being understood and agreed that, without limiting the generality
of the foregoing, payments in the nature of (A) the late payment charges
or
assumption, tax service, statement account or payoff, substitution,
satisfaction, release and other like fees and charges and (B) the items
enumerated in Section 3A.12(a) (with respect the clearing and termination
of the Distribution Account and with respect to amounts deposited in error),
in
Section 3A.12(b) or in clauses (i), (ii), (iii) and (iv), (v) of
Section 3A.12(c), need not be credited by the Master Servicer to the
Distribution Account. In the event that the Master Servicer shall deposit
or
cause to be deposited to the Distribution Account any amount not required
to be
credited thereto, the Trustee or the Trust Administrator, upon receipt of
a
written request therefor signed by a Servicing Officer of the Master Servicer,
shall promptly transfer such amount to the Master Servicer, any provision
herein
to the contrary notwithstanding.
The
Trust
Administrator may direct any depository institution maintaining the Distribution
Account to invest the funds on deposit in such account or to hold such funds
uninvested. All investments pursuant to this Section 3A.11 shall be in one
or more Permitted Investments bearing interest or sold at a discount, and
maturing, unless payable on demand, (i) no later than the Business Day
immediately preceding the date on which such funds are required to be withdrawn
from such account pursuant to this Agreement, if a Person other than the
Trust
Administrator is the obligor thereon or if such investment is managed or advised
by a Person other than the Trust Administrator or an Affiliate of the Trust
Administrator, and (ii) no later than the date on which such funds are required
to be withdrawn from such account pursuant to this Agreement, if the Trust
Administrator is the obligor thereon or if such investment is managed or
advised
by the Trust Administrator or any Affiliate. All such Permitted Investments
shall be held to maturity, unless payable on demand. Any investment of funds
in
the Distribution Account shall be made in the name of the Trustee, or in
the
name of a nominee of the Trust Administrator. The Trust Administrator shall
be
entitled to sole possession over each such investment, and any certificate
or
other instrument evidencing any such investment shall be delivered directly
to
the Trust Administrator or its agent, together with any document of transfer
necessary to transfer title to such investment to the Trust Administrator
or its
nominee. In the event amounts on deposit in the Distribution Account are
at any
time invested in a Permitted Investment payable on demand, the Trust
Administrator shall:
(a) (x)consistent
with any notice required to be given thereunder, demand that payment thereon
be
made on the last day such Permitted Investment may otherwise mature hereunder
in
an amount equal to the lesser of (1) all amounts then payable thereunder
and (2)
the amount required to be withdrawn on such date; and
(b) (y)demand
payment of all amounts due thereunder promptly upon determination by a
Responsible Officer of the Trust Administrator that such Permitted Investment
would not constitute a Permitted Investment in respect of funds thereafter
on
deposit in the Distribution Account.
All
income and gain realized from the investment of funds deposited in the
Distribution Account shall be for the benefit of the Master Servicer. The
Trust
Administrator shall deposit in the Distribution Account the amount of any
loss
of principal incurred in respect of any such Permitted Investment made with
funds in such Account immediately upon realization of such loss.
| SECTION 3A.12. |
Permitted
Withdrawals and Transfers from the Distribution
Account.
|
The
Trust
Administrator will, from time to time on demand of the Master Servicer, the
Servicer or the Trustee, make or cause to be made such withdrawals or transfers
from the Distribution Account pursuant to this Agreement. The Trust
Administrator may clear and terminate the Distribution Account pursuant to
Section 9.01 and remove amounts from time to time deposited in
error.
On
an
ongoing basis, the Trust Administrator shall withdraw funds from the
Distribution Account to pay (i) any Extraordinary Trust Fund Expenses including
but not limited to amounts payable to the Servicer or the Depositor pursuant
to
Section 6.03(b), to the Trustee pursuant to Section 3.06, Section 7.02 or
Section 8.05 or to the Master Servicer pursuant to Section 6.03(c), and
(ii) any amounts expressly payable to the Master Servicer as set forth in
Section 3A.09.
The
Trust
Administrator may withdraw from the Distribution Account any of the following
amounts (in the case of any such amount payable or reimbursable to the Servicer,
only to the extent the Servicer shall not have paid or reimbursed itself
such
amount prior to making any remittance to the Master Servicer pursuant to
the
terms of this Agreement):
(i) to
reimburse the Master Servicer or (if the Master Servicer is the Servicer)
the
Trustee (to the extent either of them is obligated to do so as successor
Servicer) for any Advance of its own funds, the right of the Master Servicer
or
the Trustee, as applicable to reimbursement pursuant to this subclause (i)
being
limited to amounts received on a particular Mortgage Loan (including, for
this
purpose, the Purchase Price therefor, Insurance Proceeds, Liquidation Proceeds
and Subsequent Recoveries) which represent late payments or recoveries of
the
principal of or interest on such Mortgage Loan respecting which such Advance
was
made;
(ii) to
reimburse the Master Servicer from Insurance Proceeds, Liquidation Proceeds
or
Subsequent Recoveries relating to a particular Mortgage Loan for amounts
expended by the Master Servicer in good faith in connection with the restoration
of the related Mortgaged Property which was damaged by an Uninsured Cause
or in
connection with the liquidation of such Mortgage Loan;
(iii) to
reimburse the Master Servicer from Insurance Proceeds relating to a particular
Mortgage Loan for insured expenses incurred with respect to such Mortgage
Loan
and to reimburse the Master Servicer from Liquidation Proceeds and Subsequent
Recoveries from a particular Mortgage Loan for Liquidation Expenses incurred
with respect to such Mortgage Loan;
(iv) to
reimburse the Master Servicer for advances of funds (other than Advances)
made
with respect to the Mortgage Loans, and the right to reimbursement pursuant
to
this subclause being limited to amounts received on the related Mortgage
Loan
(including, for this purpose, the Purchase Price therefor, Insurance Proceeds,
Liquidation Proceeds and Subsequent Recoveries) which represent late recoveries
of the payments for which such advances were made;
(v) to
reimburse the Master Servicer (or if the Master Servicer is the Servicer)
the
Trustee (to the extent either of them is obligated to do so as successor
Servicer)for any Advance or Servicing Advance, after a Realized Loss has
been
allocated with respect to the related Mortgage Loan if the Advance or Servicing
Advance has not been reimbursed pursuant to clauses (i) through
(iv);
(vi) to
make
distributions in accordance with Section 4.01;
(vii) to
pay
compensation to the Trust Administrator on each Distribution Date;
(viii) to
pay
any amounts in respect of taxes pursuant to Section 10.01(g);
(ix) without
duplication of the amount set forth in clause (iii) above, to pay any
Extraordinary Trust Fund Expenses to the extent not paid by the Master Servicer
from the Distribution Account;
(x) without
duplication of any of the foregoing, to reimburse or pay the Servicer any
such
amounts as are due thereto under this Agreement and have not been retained
by or
paid to the Servicer, to the extent provided in this Agreement and to refund
to
the Servicer any amount remitted by the Servicer to the Master Servicer in
error;
(xi) to
pay to
the Master Servicer, any interest or investment income earned on funds deposited
in the Distribution Account;
(xii) to
withdraw any amount deposited in the Distribution Account in error;
(xiii) to
clear
and terminate the Distribution Account pursuant to
Section 9.01;
(xiv) to
make
distributions to the Swap Account and the Cap Account; and
(xv) to
pay
the Credit Risk Manager the Credit Risk Manager Fee.
The
Master Servicer shall keep and maintain separate accounting, on a Mortgage
Loan
by Mortgage Loan basis, for the purpose of accounting for any reimbursement
from
the Distribution Account pursuant to clauses (i) through (v) above or with
respect to any such amounts which would have been covered by such clauses
had
the amounts not been retained by the Master Servicer without being deposited
in
the Distribution Account.
On
or
before the Business Day prior to each Distribution Date, the Master Servicer
or
(if the Master Servicer is the Servicer) the Trustee (to the extent either
of
them is obligated to do so as successor Servicer) shall remit to the Trust
Administrator for deposit in the Distribution Account any Advances required
to
be made and the Master Servicer shall deposit in the Distribution Account
any
Compensating Interest required to be paid, in either such case by the Master
Servicer or the Trustee, as applicable, with respect to the Mortgage
Loans.
| SECTION 3A.13. |
Late
Remittance.
|
With
respect to any remittance received by the Master Servicer after the day on
which
such payment was due, the Servicer shall pay to the Master Servicer interest
on
any such late payment at an annual rate equal to the Prime Rate, adjusted
as of
the date of each change, plus three percentage points, but in no event greater
than the maximum amount permitted by applicable law. Such interest shall
be
deposited in the Distribution Account by the Servicer on the date such late
payment is made and shall cover the period commencing with the day following
the
day such payment was due and ending with the Business Day on which such payment
is made, both inclusive. Such interest shall be remitted along with the
distribution payable on the next succeeding Servicer Remittance Date. The
payment by the Servicer of any such interest shall not be deemed an extension
of
time for payment or a waiver of any Servicer Event of Default.
ARTICLE
IV
PAYMENTS
TO CERTIFICATEHOLDERS
| SECTION 4.01. |
Distributions.
|
(a) On
each
Distribution Date, the following amounts, in the following order of priority,
shall be distributed by REMIC I to REMIC II on account of the REMIC I Regular
Interests and distributed to the holders of the Class R Certificates (in
respect
of the Class R-I Interest), as the case may be:
With
respect to the Group I Mortgage Loans:
(1) to
Holders of REMIC I Regular Interest I, REMIC I Regular Interest I-LTP and
each
of REMIC I Regular Interest I-1-A through I-60-B, pro
rata,
in an
amount equal to (A) Uncertificated Interest for such REMIC I Regular Interests
for such Distribution Date, plus (B) any amounts payable in respect thereof
remaining unpaid from previous Distribution Dates.
(2) to
the
extent of amounts remaining after the distributions made pursuant to clause
(1)
above, payments of principal shall be allocated as follows: first, to REMIC
I
Regular Interest I and then to REMIC I Regular Interests I-1-A through I-60-B
starting with the lowest numerical denomination until the Uncertificated
Balance
of each such REMIC I Regular Interest is reduced to zero, provided that,
for
REMIC I Regular Interests with the same numerical denomination, such payments
of
principal shall be allocated pro
rata
between
such REMIC I Regular Interests, and second, to the extent of the product
of (a)
any Overcollateralization Reduction Amounts multiplied by (b) a fraction,
the
numerator of which is the aggregate Stated Principal Balance of the Group
I
Mortgage Loans and the denominator of which is the aggregate Stated Principal
Balance of the Mortgage Loans, to REMIC I Regular Interest I until the
Uncertificated Balance of such REMIC I Regular Interest is reduced to zero;
and
(3) to
the
Holders of REMIC I Regular Interest I-60-B, (A) all amounts representing
Prepayment Charges in respect of the Mortgage Loans received during the related
Prepayment Period and (B) on the Distribution Date immediately following
the
expiration of the latest Prepayment Charge as identified on the Prepayment
Charge Schedule or any Distribution Date thereafter until $100 has been
distributed pursuant to this clause.
With
respect to the Group II Mortgage Loans:
(1) to
Holders of REMIC I Regular Interest II and each of REMIC I Regular Interest
II-1-A through II-60-B, pro
rata,
in an
amount equal to (A) Uncertificated Interest for such REMIC I Regular Interests
for such Distribution Date, plus (B) any amounts payable in respect thereof
remaining unpaid from previous Distribution Dates.
(2) to
the
extent of amounts remaining after the distributions made pursuant to clause
(1)
above, payments of principal shall be allocated as follows: first, to REMIC
I
Regular Interest II and then to REMIC I Regular Interests II-1-A through
II-60-B
starting with the lowest numerical denomination until the Uncertificated
Balance
of each such REMIC I Regular Interest is reduced to zero, provided that,
for
REMIC I Regular Interests with the same numerical denomination, such payments
of
principal shall be allocated pro
rata
between
such REMIC I Regular Interests, and second, to the extent of the product
of (a)
any Overcollateralization Reduction Amounts multiplied by (b) a fraction,
the
numerator of which is the aggregate Stated Principal Balance of the Group
I
Mortgage Loans and the denominator of which is the aggregate Stated Principal
Balance of the Mortgage Loans, to REMIC I Regular Interest II until the
Uncertificated Balance of such REMIC I Regular Interest is reduced to
zero.
(3)
On
each
Distribution Date, all amounts representing Prepayment Charges in respect
of the
Mortgage Loans received during the related Prepayment Period shall be
distributed by REMIC I to the Holders of REMIC I Regular Interest II-60-B.
The
payment of the foregoing amounts to the Holders of REMIC I Regular Interest
I-LTP shall not reduce the Uncertificated Balance thereof.
(b) (1)On
each
Distribution Date, the following amounts, in the following order of priority,
shall be distributed by REMIC II to REMIC III on account of the REMIC II
Regular
Interests or withdrawn from the Distribution Account and distributed to the
holders of the Class R Certificates (in respect of the Class R-II Interest),
as
the case may be:
(i)(a) to
the
Holders of REMIC II Regular Interest II-LTIO, in an amount equal to (A)
Uncertificated Interest for such REMIC II Regular Interest for such Distribution
Date, plus (B) any amounts in respect thereof remaining unpaid from previous
Distribution Dates;
(b) to
Holders of REMIC II Regular Interest II-LTAA, REMIC II Regular Interest II-LTA1,
REMIC II Regular Interest II-LTA2, REMIC II Regular Interest II-LTA3, REMIC
II
Regular Interest II-LTA4, REMIC II Regular Interest II-LTA5, REMIC II Regular
Interest II-LTM1, REMIC II Regular Interest II-LTM2, REMIC II Regular Interest
II-LTM3, REMIC II Regular Interest II-LTM4, REMIC II Regular Interest II-LTM5,
REMIC II Regular Interest II-LTM6, REMIC II Regular Interest II-LTM7, REMIC
II
Regular Interest II-LTM8, REMIC II Regular Interest II-LTM9, REMIC II Regular
Interest II-LTM10, REMIC II Regular Interest II-LTM11, REMIC II Regular Interest
II-LTZZ and REMIC II Regular Interest II-LTP, pro
rata,
in an
amount equal to (A) the Uncertificated Interest for such Distribution Date,
plus
(B) any amounts in respect thereof remaining unpaid from previous Distribution
Dates. Amounts payable as Uncertificated Interest in respect of REMIC II
Regular
Interest II-LTZZ shall be reduced and deferred when the REMIC II
Overcollateralized Amount is less than the REMIC II Required
Overcollateralization Amount, by the lesser of (x) the amount of such difference
and (y) the Maximum II-LTZZ Uncertificated Interest Deferral Amount and such
amount will be payable to the Holders of REMIC II Regular Interest II-LTA1,
REMIC II Regular Interest II-LTA2, REMIC II Regular Interest II-LTA3, REMIC
II
Regular Interest II-LTA4, REMIC II Regular Interest II-LTA5, REMIC II Regular
Interest II-LTM1, REMIC II Regular Interest II-LTM2, REMIC II Regular Interest
II-LTM3, REMIC II Regular Interest II-LTM4, REMIC II Regular Interest II-LTM5,
REMIC II Regular Interest II-LTM6, REMIC II Regular Interest II-LTM7, REMIC
II
Regular Interest II-LTM8, REMIC II Regular Interest II-LTM9, REMIC II Regular
Interest II-LTM10 and REMIC II Regular Interest II-LTM11 in the same proportion
as the Overcollateralization Deficiency Amount is allocated to the Corresponding
Certificates and the Uncertificated Balance of REMIC II Regular Interest
II-LTZZ
shall be increased by such amount; and
(c) to
Holders of REMIC II Regular Interest II-LT1SUB, REMIC II Regular Interest
II-LT1GRP, REMIC II Regular Interest II-LT2SUB, REMIC II Regular Interest
II-LT2GRP and REMIC II Regular Interest II-LTXX, pro
rata,
in an
amount equal to (A) the Uncertificated Interest for such Distribution Date,
plus
(B) any amounts in respect thereof remaining unpaid from previous Distribution
Dates;
(ii) second,
to the Holders of REMIC II Regular Interests, in an amount equal to the
remainder of the REMIC II Marker Allocation Percentage of Available Funds
for
such Distribution Date after the distributions made pursuant to clause (b)(1)(i)
above, allocated as follows:
(a) 98.00%
of
such remainder to the Holders of REMIC II Regular Interest II-LTAA and REMIC
II
Regular Interest II-LTP, until the Uncertificated Balance of such REMIC II
Regular Interests are reduced to zero; provided, however, that REMIC II Regular
Interest II-LTP shall not be reduced until the Distribution Date immediately
following the expiration of the latest Prepayment Charge as identified on
the
Prepayment Charge Schedule or any Distribution Date thereafter, at which
point
such amount shall be distributed to REMIC II Regular Interest II-LTP, until
$100
has been distributed pursuant to this clause;
(b) 2.00%
of
such remainder, first to the Holders of REMIC II Regular Interest II-LTA1,
REMIC
II Regular Interest II-LTA2, REMIC II Regular Interest II-LTA3, REMIC II
Regular
Interest II-LTA4, REMIC II Regular Interest II-LTA5, REMIC II Regular Interest
II-LTM1, REMIC II Regular Interest II-LTM2, REMIC II Regular Interest II-LTM3,
REMIC II Regular Interest II-LTM4, REMIC II Regular Interest II-LTM5, REMIC
II
Regular Interest II-LTM6, REMIC II Regular Interest II-LTM7, REMIC II Regular
Interest II-LTM8, REMIC II Regular Interest II-LTM9, REMIC II Regular Interest
II-LTM10 and REMIC II Regular Interest II-LTM11, equal to 1.00% of and in
the
same proportion as principal payments are allocated to the Corresponding
Certificates, until the Uncertificated Balances of such REMIC II Regular
Interests are reduced to zero and second, to the Holders of REMIC II Regular
Interest II-LTZZ, 1.00%, until the Uncertificated Balance of such REMIC II
Regular Interest is reduced to zero; and
(c) any
remaining amount to the Holders of the Class R Certificates (in respect of
the
Class R-II Interest);
provided,
however, that (i) 98.00% and (ii) 2.00% of any principal payments that are
attributable to an Overcollateralization Release Amount shall be allocated
to
Holders of (i) REMIC II Regular Interest II-LTAA and REMIC II Regular Interest
II-LTP, in that order and (ii) REMIC II Regular Interest II-LTZZ, respectively;
provided that REMIC II Regular Interest II-LTP shall not be reduced until
the
Distribution Date immediately following the expiration of the latest Prepayment
Charge as identified on the Prepayment Charge Schedule or any Distribution
Date
thereafter, at which point such amount shall be distributed to REMIC II Regular
Interest II-LTP, until $100 has been distributed pursuant to this
clause.
On
each
Distribution Date, all amounts representing Prepayment Charges in respect
of the
Mortgage Loans during the related Prepayment Period and any Servicer Prepayment
Charge Payment Amount paid by the Servicer during the related Prepayment
Period
will be distributed by REMIC II to the Holders of REMIC II Regular Interest
II-LTP. The payment of the foregoing amounts to the Holders of REMIC II Regular
Interest II-LTP shall not reduce the Uncertificated Balance
thereof.
(iii) to
the
Holders of REMIC II Regular Interests, in an amount equal to the remainder
of
the REMIC II Sub WAC Allocation Percentage of Available Funds for such
Distribution Date after the distributions made pursuant to clause (i) above,
allocated so that distributions of principal shall be deemed to be made to
the
REMIC II Regular Interests first, so as to keep the Uncertificated Balance
of
each REMIC II Regular Interest ending with the designation “GRP” equal to 0.01%
of the aggregate Stated Principal Balance of the Mortgage Loans in the related
Loan Group; second, to each REMIC II Regular Interest ending with the
designation “SUB,” so that the Uncertificated Balance of each such REMIC II
Regular Interest is equal to 0.01% of the excess of (x) the aggregate Stated
Principal Balance of the Mortgage Loans in the related Loan Group over (y)
the
Certificate Principal Balance of the Class A Certificate in the related Loan
Group (except that if any such excess is a larger number than in the preceding
distribution period, the least amount of principal shall be distributed to
such
REMIC II Regular Interests such that the REMIC II Subordinated Balance Ratio
is
maintained); and third, any remaining principal to REMIC II Regular Interest
II-LTXX.
Notwithstanding
the priorities and amounts of distribution of funds pursuant to Sections
4.01(a)
or 4.01(b), actual distributions of Available Funds shall be made only in
accordance with Sections 4.01(c),(d) or (e).
On
each
Distribution Date, 100% of the amounts distributed on REMIC II Regular Interest
II-LTIO shall be deemed distributed by REMIC II to REMIC III in respect of
the
Class Swap-IO Interest. Such amounts shall be deemed distributed by REMIC
III to
REMIC VI Regular Interest SWAP-IO and from REMIC VI Regular Interest SWAP-IO
to
the Swap Administrator for deposit into the Swap Account.
(2)(I) On
each
Distribution Date, the Trust Administrator shall withdraw from the Distribution
Account that portion of Available Funds for such Distribution Date consisting
of
the Group I Interest Remittance Amount for such Distribution Date, and make
the
following distributions in the order of priority described below, in each
case
to the extent of the Group I Interest Remittance Amount remaining for such
Distribution Date:
(i) to
the
Holders of the Group I Certificates, the related Monthly Interest Distributable
Amount and the related Unpaid Interest Shortfall Amount, if any, for such
Certificates for such Distribution Date; and
(ii) concurrently,
to the Holders of the Group II Certificates, on a pro
rata
basis,
based on the entitlement of each such Class, an amount equal to the excess,
if
any, of (x) the amount required to be distributed pursuant to Section
4.01(a)(2)(II)(i) for such Distribution Date over (y) the amount actually
distributed pursuant to such sections, from the Group II Interest Remittance
Amount.
(II) On
each
Distribution Date the Trust Administrator shall withdraw from the Distribution
Account that portion of Available Funds for such Distribution Date consisting
of
the Group II Interest Remittance Amount for such Distribution Date, and make
the
following distributions in the order of priority described below, in each
case
to the extent of the Group II Interest Remittance Amount remaining for such
Distribution Date:
(iii) concurrently,
to the Holders of the Group II Certificates, on a pro
rata basis
based on the entitlement of each such Class, the related Monthly Interest
Distributable Amount and the related Unpaid Interest Shortfall Amount, if
any,
for such Certificates for such Distribution Date; and
(iv) to
the
Holders of the Group I Certificates, an amount equal to the excess, if any,
of
(x) the amount required to be distributed pursuant to Section 4.01(a)(2)(I)(i)
for such Distribution Date over (y) the amount actually distributed pursuant
to
such sections from the Group I Interest Remittance Amount.
(III) On
each
Distribution Date, following the distributions made pursuant to Section
4.01(a)(2)(I) and Section 4.01(a)(2)(II) above, the Trust Administrator shall
distribute, in each case to the extent of the sum of the Group I Interest
Remittance Amount and the Group II Interest Remittance Amount remaining
undistributed for such Distribution Date, sequentially to the Holders of
the
Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7,
Class M-8, Class M-9, Class M-10 and Class M-11 Certificates, in that order,
in
an amount equal to the Monthly Interest Distributable Amount for each such
Class.
(3)(I) On
each
Distribution Date (a) prior to the Stepdown Date or (b) on which a Trigger
Event
is in effect, distributions in respect of principal to the extent of the
Group I
Principal Distribution Amount shall be made in the following amounts and
order
of priority:
(i) first,
to
the Holders of the Group I Certificates, until the Certificate Principal
Balance
thereof has been reduced to zero; and
(ii) second,
to the Holders of the Group II Certificates (allocated among the Group II
Certificates in the priority described below), after taking into account
the
distribution of the Group II Principal Distribution Amount already distributed,
until the Certificate Principal Balances thereof have been reduced to
zero.
(II) On
each
Distribution Date (a) prior to the Stepdown Date or (b) on which a Trigger
Event
is in effect, distributions in respect of principal to the extent of the
Group
II Principal Distribution Amount shall be made in the following amounts and
order of priority:
(i) first,
to
the Holders of the Group II Certificates (allocated among the Group II
Certificates in the priority described below), until the Certificate Principal
Balances thereof have been reduced to zero; and
(ii) second,
to the Holders of the Group I Certificates, after taking into account the
distribution of the Group I Principal Distribution Amount already distributed
until the Certificate Principal Balance thereof has been reduced to
zero.
(III) On
each
Distribution Date (a) prior to the Stepdown Date or (b) on which a Trigger
Event
is in effect, distributions in respect of principal to the extent of the
sum of
the Group I Principal Distribution Amount and the Group II Principal
Distribution Amount remaining undistributed for such Distribution Date shall
be
made sequentially to the Holders of the Class M-1, Class M-2, Class M-3,
Class
M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9, Class M-10 and
Class
M-11 Certificates, in that order, in each case, until the Certificate Principal
Balance of each such Class has been reduced to zero.
(IV) On
each
Distribution Date (a) on or after the Stepdown Date and (b) on which a Trigger
Event is not in effect, distributions in respect of principal to the extent
of
the Group I Principal Distribution Amount shall be made in the following
amounts
and order of priority:
(iii) first,
to
the Holders of the Group I Certificates, the Group I Senior Principal
Distribution Amount until the Certificate Principal Balance thereof has been
reduced to zero; and
(iv) second,
to the Holders of the Group II Certificates (allocated among the Group II
Certificates in the priority described below), the remaining undistributed
Group
II Senior Principal Distribution Amount, after taking into account the
distribution of the Group II Principal Distribution Amount, up to an amount
equal to the Group II Senior Principal Distribution Amount remaining
undistributed, until the Certificate Principal Balances thereof have been
reduced to zero.
(V) On
each
Distribution Date (a) on or after the Stepdown Date and (b) on which a Trigger
Event is not in effect, distributions in respect of principal to the extent
of
the Group II Principal Distribution Amount shall be made in the following
amounts and order of priority:
(v) first,
to
the Holders of the Group II Certificates (allocated among the Group II
Certificates in the priority described below), the Group II Senior Principal
Distribution Amount until the Certificate Principal Balances thereof have
been
reduced to zero; and
(vi) second,
to the Holders of the Group I Certificates, the remaining undistributed Group
I
Senior Principal Distribution Amount, after taking into account the distribution
of the Group I Principal Distribution Amount, up to an amount equal to the
Group
I Senior Principal Distribution Amount remaining undistributed, until the
Certificate Principal Balance thereof has been reduced to zero.
(VI) On
each
Distribution Date (a) on or after the Stepdown Date and (b) on which a Trigger
Event is not in effect, distributions in respect of principal to the extent
of
the sum of the Group I Principal Distribution Amount and the Group II Principal
Distribution Amount remaining undistributed for such Distribution Date shall
be
made in the following amounts and order of priority:
(vii) first,
sequentially,
to the
Holders of the Class M-1 Certificates, the Class M-2 Certificates and the
Class
M-3 Certificates, the Sequential Class M Principal Distribution Amount until
the
aggregate Certificate Principal Balances thereof have been reduced to
zero;
(ii) second,
to the Holders of the Class M-4 Certificates, the Class M-4 Principal
Distribution Amount until the Certificate Principal Balance thereof has been
reduced to zero;
(iii) third,
to
the Holders of the Class M-5 Certificates, the Class M-5 Principal Distribution
Amount until the Certificate Principal Balance thereof has been reduced to
zero;
(iv) fourth,
to the Holders of the Class M-6 Certificates, the Class M-6 Principal
Distribution Amount until the Certificate Principal Balance thereof has been
reduced to zero;
(v) fifth,
to
the Holders of the Class M-7 Certificates, the Class M-7 Principal Distribution
Amount until the Certificate Principal Balance thereof has been reduced to
zero;
(vi) sixth,
to
the Holders of the Class M-8 Certificates, the Class M-8 Principal Distribution
Amount until the Certificate Principal Balance thereof has been reduced to
zero;
(vii) seventh,
to the Holders of the Class M-9 Certificates, the Class M-9 Principal
Distribution Amount until the Certificate Principal Balance thereof has been
reduced to zero;
(viii) eighth,
to the Holders of the Class M-10 Certificates, the Class M-10 Principal
Distribution Amount until the Certificate Principal Balance thereof has been
reduced to zero;
and
(viii) ninth,
to
the Holders of the Class M-11 Certificates, the Class M-11 Principal
Distribution Amount until the Certificate Principal Balance thereof has been
reduced to zero
With
respect to the Group II Certificates, all principal distributions will be
distributed sequentially, to the Class A-2 Certificates, Class A-3 Certificates,
Class A-4 Certificates and Class A-5 Certificates, in that order, until their
respective Certificate Principal Balances have been reduced to zero; provided,
however, on any Distribution Date on which the aggregate Certificate Principal
Balance of the Mezzanine Certificates and the Class CE Certificates has been
reduced to zero, all principal distributions will be distributed concurrently,
to the Class A-2 Certificates, Class A-3 Certificates, Class A-4 Certificates
and Class A-5 Certificates, on a pro
rata
basis
based on the Certificate Principal Balance of each such Class.
(c) On
each
Distribution Date, the Net Monthly Excess Cashflow shall be distributed as
follows:
(i) to
the
Holders of the Class or Classes of Certificates then entitled to receive
distributions in respect of principal, in an amount equal to any Extra Principal
Distribution Amount, without taking into account amounts, if any, received
under
the Interest Rate Swap Agreement, distributable to such Holders as part of
the
Group I Principal Distribution Amount or the Group II Principal Distribution
Amount, as applicable, as described under Section 4.01(b) above;
(ii) sequentially,
to the Holders of the 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, Class M-9
Certificates, Class M-10 Certificates and Class M-11 Certificates, in that
order, in each case first, in an amount equal to the Unpaid Interest Shortfall
Amount allocable to such Certificates and second, in an amount equal to the
Allocated Realized Loss Amount allocable to such Certificates;
(iii) to
the
Net WAC Rate Carryover Reserve Account, the amount of any Net WAC Rate Carryover
Amounts, without taking into account amounts, if any, received under the
Interest Rate Swap Agreement;
(iv) to
the
Swap Provider, any Swap Termination Payments resulting from a Swap Provider
Trigger Event;
(v) to
the
Holders of the Class CE Certificates, (a) the Monthly Interest Distributable
Amount and any Overcollateralization Release Amount for such Distribution
Date
and (b) on any Distribution Date on which the aggregate Certificate Principal
Balance of the Class A Certificates and the Mezzanine Certificates has been
reduced to zero, any remaining amounts in reduction of the Certificate Principal
Balance of the Class CE Certificates, until the Certificate Principal Balance
thereof has been reduced to zero;
(vi) if
such
Distribution Date follows the Prepayment Period during which occurs the latest
date on which a Prepayment Charge may be required to be paid in respect of
any
Mortgage Loans, to the Holders of the Class P Certificates, in reduction
of the
Certificate Principal Balance thereof, until the Certificate Principal Balance
thereof is reduced to zero; and
(vii) any
remaining amounts to the Holders of the Residual Certificates (in respect
of the
appropriate Class R Interest).
Without
limiting the provisions of Section 9.01(b), by acceptance of the Residual
Certificates the Holders of the Residual Certificates agree, and it is the
understanding of the parties hereto, that for so long as any of the notes
issued
pursuant to the Indenture are outstanding or any amounts are reimbursable
or
payable to the NIMS Insurer in accordance with the terms of the Indenture,
to
pledge their rights to receive any amounts otherwise distributable to the
Holders of the Class R Certificates (and such rights are hereby assigned
and
transferred) to the Holders of the Class CE Certificates.
(d) On
each
Distribution Date, after making the distributions of the Available Funds
as set
forth above, the Trust Administrator will withdraw from the Net WAC Rate
Carryover Reserve Account, to the extent of amounts remaining on deposit
therein, the amount of any Net WAC Rate Carryover Amount for such Distribution
Date and distribute such amount in the following order of priority:
(i)
concurrently, to the Class A Certificates, on a pro rata basis based on the
remaining Net WAC Rate Carryover Amount for each such Class; and
(ii) sequentially,
to the 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, Class M-9 Certificates, Class M-10
Certificates and Class M-11 Certificates, in that order, the Net WAC Rate
Carryover Amount for each such Class.
On
each
Distribution Date, the Trust Administrator shall withdraw any amounts then
on
deposit in the Distribution Account that represent (i) Prepayment Charges
collected by the Servicer and remitted to the Master Servicer in connection
with
the Principal Prepayment of any of the Mortgage Loans, (ii) any Originator
Prepayment Charge Payment Amounts or (iii) any Servicer Prepayment Charge
Payment Amounts, and shall distribute such amounts to the Holders of the
Class P
Certificates. Such distributions shall not be applied to reduce the Certificate
Principal Balance of the Class P Certificates.
Following
the foregoing distributions, an amount equal to the amount of Subsequent
Recoveries remitted to the Master Servicer shall be applied to increase the
Certificate Principal Balance of the Class of Certificates with the Highest
Priority up to the extent of such Realized Losses previously allocated to
that
Class of Certificates pursuant to Section 4.04. An amount equal to the
amount of any remaining Subsequent Recoveries shall be applied to increase
the
Certificate Principal Balance of the Class of Certificates with the next
Highest
Priority, up to the amount of such Realized Losses previously allocated to
that
Class of Certificates pursuant to Section 4.04. Holders of such
Certificates will not be entitled to any distribution in respect of interest
on
the amount of such increases for any Accrual Period preceding the Distribution
Date on which such increase occurs. Any such increases shall be applied to
the
Certificate Principal Balance of each Certificate of such Class in accordance
with its respective Percentage Interest.
(e) On
or
before each Distribution Date, Net Swap Payments (whether payable to the
Swap
Provider or to the Supplemental Interest Trust Trustee), any Swap Termination
Payment owed to the Swap Provider not resulting from a Swap Provider Trigger
Event pursuant to the Interest Rate Swap Agreement and any Swap Termination
Payments owed to the Supplemental Interest Trust Trustee will be deposited
by
the Swap Administrator into the Swap Account. On or before each Distribution
Date, pursuant to the Interest Rate Swap Agreement, the Trust Administrator
shall withdraw from amounts on deposit in the Swap Account (other than amounts
representing Swap Termination Payments received by the Supplemental Interest
Trust Trustee or Net Swap Payments received by the Supplemental Interest
Trust
Trustee) prior to any distribution to any Certificates and distribute such
withdrawn amounts as follows:
(i) to
the
Swap Provider, any Net Swap Payment owed to the Swap Provider pursuant to
the
Interest Rate Swap Agreement for such Distribution Date;
(ii) to
the
Swap Provider, any Swap Termination Payment owed to the Swap Provider not
due to
a Swap Provider Trigger Event pursuant to the Interest Rate Swap Agreement
and
to the extent not paid by the Trust Administrator (in its capacity as
Supplemental Interest Trust Trustee) from any upfront payment received pursuant
to any replacement interest rate swap agreement;
(f) On
each
Distribution Date, after making the distributions of the Available Funds,
Net
Monthly Excess Cashflow and amounts on deposit in the Net WAC Rate Carryover
Reserve Account as set forth above, the Trust Administrator shall distribute
the
amount on deposit in the Swap Account as follows:
(i) concurrently,
to each Class of Class A Certificates, the related Monthly Interest
Distributable Amount and Unpaid Interest Shortfall Amount remaining
undistributed after the distributions of the Group
I
Interest Remittance Amount and/or the Group II Interest Remittance
Amount,
on a
pro rata basis based on such respective remaining Monthly Interest Distributable
Amount and Unpaid Interest Shortfall Amount;
(ii) sequentially,
to the Class X-0, Xxxxx X-0, Class M-3, Class M-4, Class M-5, Class M-6,
Class
M-7, Class M-8, Class M-9, Class M-10 and Class M-11 Certificates, in that
order, the related Monthly Interest Distributable Amount and Unpaid Interest
Shortfall Amount, to the extent remaining undistributed after the distributions
of the Group I Interest Remittance Amount and/or the Group II Interest
Remittance Amount and the Net Monthly Excess Cashflow;
(iii) to
the
Holders of the Class or Classes of Certificates then entitled to receive
distributions in respect of principal, in an amount equal to any Extra Principal
Distribution Amount, without taking into account amounts, if any, received
under
the Interest Rate Swap Agreement, distributable to such Holders as part of
the
Group I Principal Distribution Amount or the Group II Principal Distribution
Amount, remaining undistributed after distribution of the Net Monthly Excess
Cashflow;
(iv) sequentially
to the Class X-0, Xxxxx X-0, Class M-3, Class M-4, Class M-5, Class M-6,
Class
M-7, Class M-8, Class M-9, Class M-10 and Class M-11 Certificates, in that
order, in each case up to the related Allocated Realized Loss Amount related
to
such Certificates for such Distribution Date remaining undistributed after
distribution of the Net Monthly Excess Cashflow;
(v) concurrently,
to each Class of Class A Certificates, the related Net WAC Rate Carryover
Amount, to the extent remaining undistributed after distributions are made
from
the Net WAC Rate Carryover Reserve Account, on a pro rata basis based on
such
respective Net WAC Rate Carryover Amounts remaining; and
(vi) sequentially,
to the Class X-0, Xxxxx X-0, Class M-3, Class M-4, Class M-5, Class M-6,
Class
M-7, Class M-8, Class M-9, Class M-10 and Class M-11 Certificates, in that
order, the related Net WAC Rate Carryover Amount, to the extent remaining
undistributed after distributions are made from the Net WAC Rate Carryover
Reserve Account.
(g) On
each
Distribution Date, after making the distributions of the Available Funds,
Net
Monthly Excess Cashflow, amounts on deposit in the Net WAC Rate Carryover
Reserve Account and amounts on deposit in the Swap Account as set forth above,
the Trust Administrator shall distribute the amount on deposit in the Cap
Account as follows:
(i) concurrently,
to each Class of Class A Certificates, the related Monthly Interest
Distributable Amount and Unpaid Interest Shortfall Amount remaining
undistributed after the distributions of the Group I Interest Remittance
Amount
and/or the Group II Interest Remittance Amount, on a pro rata basis based
on
such respective remaining Monthly Interest Distributable Amount and Unpaid
Interest Shortfall Amount;
(ii) sequentially,
to the Class X-0, Xxxxx X-0, Class M-3, Class M-4, Class M-5, Class M-6,
Class
M-7, Class M-8, Class M-9, Class M-10 and Class M-11 Certificates, in that
order, the related Monthly Interest Distributable Amount and Unpaid Interest
Shortfall Amount, to the extent remaining undistributed after the distributions
of the Group I Interest Remittance Amount and/or the Group II Interest
Remittance Amount, the Net Monthly Excess Cashflow and
distributions from the Swap Account;
(iii) to
the
Holders of the Class or Classes of Certificates then entitled to receive
distributions in respect of principal, in an amount equal to any Extra Principal
Distribution Amount, without taking into account amounts, if any, received
under
the Interest Rate Swap Agreement, distributable to such Holders as part of
the
Group I Principal Distribution Amount or the Group II Principal Distribution
Amount, remaining undistributed after distribution of the Net Monthly Excess
Cashflow and distributions from the Swap Account;
(iv) sequentially
to the Class X-0, Xxxxx X-0, Class M-3, Class M-4, Class M-5, Class M-6,
Class
M-7, Class M-8, Class M-9, Class M-10 and Class M-11 Certificates, in that
order, in each case up to the related Allocated Realized Loss Amount related
to
such Certificates for such Distribution Date remaining undistributed after
distribution of the Net Monthly Excess Cashflow and distributions from the
Swap
Account;
(v) concurrently,
to each Class of Class A Certificates, the related Net WAC Rate Carryover
Amount, to the extent remaining undistributed after distributions are made
from
the Net WAC Rate Carryover Reserve Account, on a pro rata basis based on
such
respective Net WAC Rate Carryover Amounts remaining; and
(vi) sequentially,
to the Class X-0, Xxxxx X-0, Class M-3, Class M-4, Class M-5, Class M-6,
Class
M-7, Class M-8, Class M-9, Class M-10 and Class M-11 Certificates, in that
order, the related Net WAC Rate Carryover Amount, to the extent remaining
undistributed after distributions are made from the Net WAC Rate Carryover
Reserve Account and distributions from the Swap Account; and
(vii) any
remaining amount to the Holders of the Class CE Certificates.
(h) Distributions
made with respect to each Class of Certificates on each Distribution Date
shall
be allocated pro
rata
among
the outstanding Certificates in such Class based on their respective Percentage
Interests. Distributions in respect of each Class of Certificates on each
Distribution Date will be made to the Holders of the respective Class of
record
on the related Record Date (except as otherwise provided in Section 4.01(d)
or Section 9.01 respecting the final distribution on such Class), based on
the aggregate Percentage Interest represented by their respective Certificates,
and shall be made by wire transfer of immediately available funds to the
account
of any such Holder at a bank or other entity having appropriate facilities
therefor, if such Holder shall have so notified the Trust Administrator in
writing at least five Business Days prior to the Record Date immediately
prior
to such Distribution Date and is the registered owner of Certificates having
an
initial aggregate Certificate Principal Balance or Notional Amount that is
in
excess of the lesser of (i) $5,000,000 or (ii) two-thirds of the initial
Certificate Principal Balance or Notional Amount of such Class of Certificates,
or otherwise by check mailed by first class mail to the address of such Holder
appearing in the Certificate Register. The final distribution on each
Certificate will be made in like manner, but only upon presentment and surrender
of such Certificate at the Corporate Trust Office of the Trust Administrator
or
such other location specified in the notice to Certificateholders of such
final
distribution.
Each
distribution with respect to a Book-Entry Certificate shall be paid to the
Depository, as Holder thereof, and the Depository shall be responsible for
crediting the amount of such distribution to the accounts of its Depository
Participants in accordance with its normal procedures. Each Depository
Participant shall be responsible for disbursing such distribution to the
Certificate Owners that it represents and to each indirect participating
brokerage firm (a “brokerage firm” or “indirect participating firm”) for which
it acts as agent. Each brokerage firm shall be responsible for disbursing
funds
to the Certificate Owners that it represents. None of the Trustee, the Trust
Administrator, the Depositor or the Master Servicer shall have any
responsibility therefor except as otherwise provided by this Agreement or
applicable law.
(i) The
rights of the Certificateholders to receive distributions in respect of the
Certificates, and all interests of the Certificateholders in such distributions,
shall be as set forth in this Agreement. None of the Holders of any Class
of
Certificates, the Trustee, the Trust Administrator or the Master Servicer
shall
in any way be responsible or liable to the Holders of any other Class of
Certificates in respect of amounts properly previously distributed on the
Certificates.
(j) Except
as
otherwise provided in Section 9.01, whenever the Trust Administrator
expects that the final distribution with respect to any Class of Certificates
will be made on the next Distribution Date, the Trust Administrator shall,
no
later than three (3) days before the related Distribution Date, mail to each
Holder on such date of such Class of Certificates a notice to the effect
that:
(i) the
Trust
Administrator expects that the final distribution with respect to such Class
of
Certificates will be made on such Distribution Date but only upon presentation
and surrender of such Certificates at the office of the Trust Administrator
therein specified, and
(ii) no
interest shall accrue on such Certificates from and after the end of the
related
Accrual Period.
Any
funds
not distributed to any Holder or Holders of Certificates of such Class on
such
Distribution Date because of the failure of such Holder or Holders to tender
their Certificates shall, on such date, be set aside and held in trust by
the
Trust Administrator and credited to the account of the appropriate non-tendering
Holder or Holders. If any Certificates as to which notice has been given
pursuant to this Section 4.01(e) shall not have been surrendered for
cancellation within six months after the time specified in such notice, the
Trust Administrator shall mail a second notice to the remaining non-tendering
Certificateholders to surrender their Certificates for cancellation in order
to
receive the final distribution with respect thereto. If within one year after
the second notice all such Certificates shall not have been surrendered for
cancellation, the Trust Administrator shall, directly or through an agent,
mail
a final notice to the remaining non-tendering Certificateholders concerning
surrender of their Certificates but shall continue to hold any remaining
funds
for the benefit of non-tendering Certificateholders. The costs and expenses
of
maintaining the funds in trust and of contacting such Certificateholders
shall
be paid out of the assets remaining in the Trust Fund. If within one year
after
the final notice any such Certificates shall not have been surrendered for
cancellation, the Trust Administrator shall pay to UBS Securities LLC all
such
amounts, and all rights of non-tendering Certificateholders in or to such
amounts shall thereupon cease. No interest shall accrue or be payable to
any
Certificateholder on any amount held in trust by the Trust Administrator
as a
result of such Certificateholder’s failure to surrender its Certificate(s) for
final payment thereof in accordance with this Section 4.01(d). Any such
amounts held in trust by the Trust Administrator shall be held in an Eligible
Account and the Trust Administrator may direct any depository institution
maintaining such account to invest the funds in one or more Permitted
Investments. All income and gain realized from the investment of funds deposited
in such accounts held in trust by the Trust Administrator shall be for the
benefit of the Trust Administrator; provided, however, that the Trust
Administrator shall deposit in such account the amount of any loss of principal
incurred in respect of any such Permitted Investment made with funds in such
accounts immediately upon the realization of such loss.
(k) Notwithstanding
anything to the contrary herein, (i) in no event shall the Certificate Principal
Balance of a Class A Certificate or a Mezzanine Certificate be reduced more
than
once in respect of any particular amount both (a) allocated to such Certificate
in respect of Realized Losses pursuant to Section 4.04 and (b) distributed
to the Holder of such Certificate in reduction of the Certificate Principal
Balance thereof pursuant to this Section 4.01 from Net Monthly Excess
Cashflow and (ii) in no event shall the Uncertificated Balance of a REMIC
I
Regular Interest be reduced more than once in respect of any particular amount
both (a) allocated to such REMIC I Regular Interest in respect of Realized
Losses pursuant to Section 4.04 and (b) distributed on such REMIC I Regular
Interest in reduction of the Uncertificated Balance thereof pursuant to this
Section 4.01.
| SECTION 4.02. |
Statements
to Certificateholders.
|
On
each
Distribution Date, based (in part), as applicable, on information provided
to
the Trust Administrator by the Master Servicer (which in turn shall be based
(in
part), as applicable, on information provided to the Master Servicer by the
Servicer), the Trust Administrator shall prepare and make available to each
Holder of the Regular Certificates, the Credit Risk Manager, the other parties
hereto, the
NIMS
Insurer
and the
Rating Agencies, a statement as to the distributions to be made on such
Distribution Date containing the following information:
(i) the
amount of the distribution made on such Distribution Date to the Holders
of the
Certificates of each Class allocable to principal, and the amount of the
distribution made on such Distribution Date to the Holders of the Class P
Certificates allocable to Prepayment Charges, Originator Prepayment Charge
Payment Amounts and Servicer Prepayment Charge Payment Amounts;
(ii) the
amount of the distribution made on such Distribution Date to the Holders
of the
Certificates of each Class allocable to interest;
(iii) the
fees
and expenses of the Trust accrued and paid on such Distribution Date and
to whom
such fees and expenses were paid;
(iv) the
aggregate amount of Advances for such Distribution Date (including the general
purpose of such Advances);
(v) the
aggregate Stated Principal Balance of the Mortgage Loans and any REO Properties
as of the last day of the related Due Period;
(vi) the
number, aggregate Stated Principal Balance, weighted average remaining term
to
maturity and weighted average Mortgage Rate of the Mortgage Loans as of the
related Due Date;
(vii) the
number and aggregate unpaid Principal Balance of Mortgage Loans (a) delinquent
30 to 59 days, (b) delinquent 60 to 89 days, (c) delinquent 90 or more days,
in
each case, as of the last day of the preceding calendar month, not including
Liquidated Mortgage Loans as of the end of the related Prepayment Period,
(d) as
to which foreclosure proceedings have been commenced and (e) with respect
to
which the related Mortgagor has filed for protection under applicable bankruptcy
laws, with respect to whom bankruptcy proceedings are pending or with respect
to
whom bankruptcy protection is in force and with respect to (a), (b) and (c)
above, delinquencies shall be determined by and reported utilizing the OTS
methodology;
(viii) the
total
number and cumulative principal balance of all REO Properties as of the close
of
business on the last day of the preceding Prepayment Period;
(ix) the
aggregate amount of Principal Prepayments made during the related Prepayment
Period;
(x) the
Delinquency Percentage;
(xi) the
aggregate amount of Realized Losses incurred during the related Prepayment
Period, which will include the aggregate amount of Subsequent Recoveries
received during the related Prepayment Period and the aggregate amount of
Realized Losses incurred since the Closing Date, which will include the
cumulative amount of Subsequent Recoveries received since the Closing
Date;
(xii) the
aggregate amount of Extraordinary Trust Fund Expenses withdrawn from the
Collection Account or the Distribution Account for such Distribution
Date;
(xiii) the
aggregate Certificate Principal Balance and Notional Amount, as applicable,
of
each Class of Certificates, before and after giving effect to the distributions,
and allocations of Realized Losses, made on such Distribution Date, separately
identifying any reduction thereof due to allocations of Realized
Losses;
(xiv) the
Certificate Factor for each such Class of Certificates applicable to such
Distribution Date;
(xv) the
Monthly Interest Distributable Amount in respect of the Class A Certificates,
the Mezzanine Certificates and the Class CE Certificates for such Distribution
Date and the Unpaid Interest Shortfall Amount, if any, with respect to the
Class
A Certificates and the Mezzanine Certificates on such Distribution Date,
separately identifying any reduction thereof due to allocations of Realized
Losses, Prepayment Interest Shortfalls and Relief Act Interest
Shortfalls;
(xvi) the
aggregate amount of any Prepayment Interest Shortfall for such Distribution
Date, to the extent not covered by payments by the Servicer or the Master
Servicer;
(xvii) the
aggregate amount of Relief Act Interest Shortfalls for such Distribution
Date;
(xviii) the
Net
Monthly Excess Cashflow, the Overcollateralization Target Amount, the
Overcollateralized Amount, the Overcollateralization Deficiency Amount and
the
Credit Enhancement Percentage for such Distribution Date;
(xix) the
respective Pass-Through Rates applicable to the Class A Certificates, the
Mezzanine Certificates and the Class CE Certificates for such Distribution
Date
(and whether such Pass-Through Rate was limited by the Net WAC
Rate);
(xx) the
Aggregate Loss Severity Percentage;
(xxi) whether
the Stepdown Date or a Trigger Event is in effect;
(xxii) the
total
cashflows received and the general sources thereof;
(xxiii) the
Available Funds;
(xxiv) the
Net
WAC Rate Carryover Amount for the Class A Certificates and the Mezzanine
Certificates, if any, for such Distribution Date, the amount remaining unpaid
after reimbursements therefor on such Distribution Date;
(xxv) the
amount of any Net Swap Payments or Swap Termination Payments; and
(xxvi) unless
otherwise set forth in the Form 10-D relating to such Distribution Date,
material modifications, extensions or waivers to Mortgage Loan terms, fees,
penalties or payments during the preceding calendar month or that have become
material over time and the aggregate number of Mortgage Loans which have
been
modified, waived or amended since the Closing Date; and
(xxvii) the
applicable Record Dates, Accrual Periods and Determination Dates for calculating
distributions for such Distribution Date.
The
Trust
Administrator will make such statement (and, at its option, any additional
files
containing the same information in an alternative format) available each
month
to Certificateholders, the Master Servicer, the Servicer, the Depositor and
the
Rating Agencies via the Trust Administrator’s internet website. The Trust
Administrator’s internet website shall initially be located at
“xxx.xxxxxxx.xxx”. Assistance in using the website can be obtained by calling
the Trust Administrator’s customer service desk at (000) 000-0000. Parties that
are unable to use the above distribution options are entitled to have a paper
copy mailed to them via first class mail by calling the customer service
desk
and indicating such. The Trust Administrator shall have the right to change
the
way such statements are distributed in order to make such distribution more
convenient and/or more accessible to the above parties and the Trust
Administrator shall provide timely and adequate notification to all above
parties regarding any such changes. As a condition to access the Trust
Administrator’s internet website, the Trust Administrator may require
registration and the acceptance of a disclaimer. The Trust Administrator
will
not be liable for the dissemination of information in accordance with this
Agreement. The Trust Administrator shall also be entitled to rely on but
shall
not be responsible for the content or accuracy of any information provided
by
third parties for purposes of preparing the distribution date statement and
may
affix thereto any disclaimer it deems appropriate in its reasonable discretion
(without suggesting liability on the part of any other party
thereto).
In
the
case of information furnished pursuant to subclauses (i) through (iii) above,
the amounts shall be expressed as a dollar amount per Single Certificate
of the
relevant Class.
Within
a
reasonable period of time after the end of each calendar year, the Trust
Administrator shall, upon written request, forward to each Person who at
any
time during the calendar year was a Holder of a Regular Certificate and the
NIMS
Insurer a statement containing the information set forth in subclauses (i)
through (iii) above, aggregated for such calendar year or applicable portion
thereof during which such Person was a Certificateholder. Such obligation
of the
Trust Administrator shall be deemed to have been satisfied to the extent
that
substantially comparable information shall be provided by the Trust
Administrator pursuant to any requirements of the Code as from time to time
are
in force.
Within
a
reasonable period of time after the end of each calendar year, the Trust
Administrator shall furnish to each Person who at any time during the calendar
year was a Holder of a Residual Certificate and the NIMS Insurer a statement
setting forth the amount, if any, actually distributed with respect to the
Residual Certificates, as appropriate, aggregated for such calendar year
or
applicable portion thereof during which such Person was a
Certificateholder.
The
Trust
Administrator shall, upon request, furnish to each Certificateholder and
the
NIMS Insurer, during the term of this Agreement, such periodic, special,
or
other reports or information, whether or not provided for herein, as shall
be
reasonable with respect to the Certificateholder, or otherwise with respect
to
the purposes of this Agreement, all such reports or information to be provided
at the expense of the Certificateholder in accordance with such reasonable
and
explicit instructions and directions as the Certificateholder may provide.
For
purposes of this Section 4.02, the Trust Administrator’s duties are limited
to the extent that the Master Servicer receives timely reports as required
from
the Servicer.
On
each
Distribution Date the Trust Administrator shall provide Intex Solutions,
Inc.
and Bloomberg Financial Markets, L.P. (“Bloomberg”) CUSIP level factors for each
class of Certificates as of such Distribution Date, using a format and media
mutually acceptable to the Trust Administrator and Bloomberg.
For
each
Distribution Date, through and including the Distribution Date in December
2007,
the
Trust Administrator shall calculate on each Significance Percentage Calculation
Date, the Significance Percentage of the Interest Rate Swap Agreement.
If
on any
such Distribution Date, the Significance Percentage is equal to or greater
than
9%, the Trust Administrator shall promptly notify the Depositor and the
Depositor shall obtain the financial information required to be delivered
by the
Swap Provider pursuant to the terms of the Interest Rate Swap Agreement.
If, on
any succeeding Distribution Date through and including the Distribution Date
in
December 2007, the Significance Percentage is equal to or greater than 10%,
the
Trust Administrator shall promptly notify the Depositor and the Depositor
shall,
within 5 Business Days of such Distribution Date, deliver to the Trust
Administrator the financial information provided to it by the Swap Provider
for
inclusion in the Form 10-D relating to such Distribution Date. If the Depositor
delivers to the Trust Administrator the financial information provided to
it by
the Swap Provider after 5 Business Days but before the related Form 10-D
filing
deadline, the Trust Administrator will use commercially reasonable efforts
to
include such information in such Form 10-D filing. If on any Distribution
Date
after December 2007, the Significance Percentage is greater than 10%, the
Trust
Administrator shall include the Significance Percentage on the statement
to
Certificateholders for the related Distribution Date.
The
Trust
Administrator shall calculate the Significance Percentage in accordance with
the
definition of “Significance Percentage” as set forth herein.
Notwithstanding
the foregoing, the Trust Administrator shall not have any obligations pursuant
to the immediately preceding two paragraphs if a Form 15 Suspension Notification
with respect to the Trust is filed on or prior to January 30, 2007.
| SECTION 4.03. |
Remittance
Reports; Advances.
|
(a) On
the
2nd Business Day following the Determination Date, but in no event later
than
noon on the 18th calendar day (or, if such 18th day is not a Business Day
(other
than a Saturday), then on the next succeeding Business Day, or, if such 18th
day
is a Saturday, then on the preceding Business Day), the Servicer shall furnish
to the Trust Administrator, the NIMS Insurer and the Credit Risk Manager
a
monthly remittance advice (which together with any supplemental reports is
known
as the “Remittance Report”) in a format attached as Exhibit R-2 or in any other
format as mutually agreed to between the Servicer and the Trust Administrator,
containing such information regarding the Mortgage Loans as is needed by
the
Trust Administrator to perform its duties as set forth in Section 4.01 and
4.02
hereof. Such Remittance Report will also include a delinquency report
substantially in the form set forth in Exhibit R-1 and a realized loss report
substantially in the form set forth in Exhibit R-3 (or in either case, such
other format as mutually agreed to between the Servicer and the Trust
Administrator).
(b) With
respect to any Mortgage Loan on which a Monthly Payment was due during the
related Due Period and delinquent on the related Determination Date, the
amount
of the Servicer’s Advance will be equal to the Monthly Payment (net of the
related Servicing Fee) that would have been due on the related Due Date in
respect of the related Mortgage Loan. With respect to each REO Property,
which
REO Property was acquired during or prior to the related Prepayment Period
and
as to which such REO Property an REO Disposition did not occur during the
related Prepayment Period, an amount equal to the excess, if any, of the
Monthly
Payment (net of the related Servicing Fee) that would have been due on the
related Due Date in respect of the related Mortgage Loan, over the net income
from such REO Property deposited in the Collection Account pursuant to Section
3.23 for distribution on such Distribution Date.
On
the
Servicer Remittance Date, the Servicer shall remit in immediately available
funds to the Trust Administrator for deposit in the Distribution Account
an
amount equal to the aggregate amount of Advances, if any, to be made in respect
of the Mortgage Loans for the related Distribution Date either (i) from its
own
funds or (ii) from the Collection Account, to the extent of funds held therein
for future distribution (in which case it will cause to be made an appropriate
entry in the records of the Collection Account that amounts held for future
distribution have been, as permitted by this Section 4.03, used by the Servicer
in discharge of any such Advance) or (iii) in the form of any combination
of (i)
and (ii) aggregating the total amount of Advances to be made by the Servicer
with respect to the Mortgage Loans. Any amounts held for future distribution
used by the Servicer to make an Advance as permitted in the preceding sentence
shall be appropriately reflected in the Servicer’s records and replaced by the
Servicer by deposit in the Collection Account on or before any future Servicer
Remittance Date to the extent that the Available Funds for the related
Distribution Date (determined without regard to Advances to be made on the
Servicer Remittance Date) shall be less than the total amount that would
be
distributed to the Certificateholders pursuant to Section 4.01 on such
Distribution Date if such amounts held for future distributions had not been
so
used to make Advances. The Trust Administrator will provide notice to the
Servicer and the NIMS Insurer by telecopy by the close of business on the
Servicer Remittance Date in the event that the amount remitted by the Servicer
to the Trust Administrator on such date is less than the Advances required
to be
made by the Servicer for the related Distribution Date.
(c) The
obligation of the Servicer to make such Advances is mandatory, notwithstanding
any other provision of this Agreement but subject to (d) below, and, with
respect to any Mortgage Loan or REO Property, shall continue until a Final
Recovery Determination in connection therewith or the removal thereof from
the
Trust Fund pursuant to any applicable provision of this Agreement, except
as
otherwise provided in this Section. With respect however to Balloon Mortgage
Loans, the Servicer shall not be required to make any Advances covering the
Balloon Payment.
(d) Notwithstanding
anything herein to the contrary, no Advance or Servicing Advance shall be
required to be made hereunder by the Servicer if such Advance or Servicing
Advance would, if made, constitute a Nonrecoverable Advance or Nonrecoverable
Servicing Advance, respectively. The determination by the Servicer that it
has
made a Nonrecoverable Advance or a Nonrecoverable Servicing Advance or that
any
proposed Advance or Servicing Advance, if made, would constitute a
Nonrecoverable Advance or Nonrecoverable Servicing Advance, respectively,
shall
be evidenced by a certification of a Servicing Officer delivered to the Trust
Administrator (whereupon, upon receipt of such certification, the Trust
Administrator shall forward a copy of such certification to the Depositor,
the
Trustee, the NIMS Insurer and the Credit Risk Manager). Notwithstanding the
foregoing, if following the application of Liquidation Proceeds on any Mortgage
Loan that was the subject of a Final Recovery Determination, any Servicing
Advance with respect to such Mortgage Loan shall remain unreimbursed to the
Servicer, then without limiting the provisions of Section 3.11(a), a
certification of a Servicing Officer regarding such Nonrecoverable Servicing
Advance shall not be required to be delivered by the Servicer to the Trust
Administrator.
(e) In
the
event the Servicer fails to make any Advance required to be made by it pursuant
to this Section 4.03 and such failure is not remedied within the applicable
cure
period pursuant to Section 7.01(a), then, pursuant to Section 7.01(a), the
Servicer will be terminated, and, in accordance with Sections 7.01(a) and
7.02,
the Master Servicer or (if the Master Servicer is the Servicer) the Trustee
(in
its respective capacity as successor servicer) or another successor servicer
shall be required to make such Advance on the Distribution Date with respect
to
which the Servicer was required to make such Advance, subject to the Master
Servicer’s or the Trustee’s (or other successor servicer’s) determination of
recoverability. The Servicer, the Master Servicer or the Trustee, as applicable
(or other successor servicer) shall not be required to make any Advance to
cover
any Relief Act Interest Shortfall on any Mortgage Loan or shortfalls relating
to
bankruptcy proceedings. If the Master Servicer or the Trustee, as applicable
(or
other successor servicer) is required to make any Advances, such advances
may be
made by it in the manner set forth under subsection 4.03(b) above.
| SECTION 4.04. |
Allocation
of Realized Losses.
|
(a) Prior
to
each Distribution Date, the Servicer shall determine as to each Mortgage
Loan
and REO Property: (i) the total amount of Realized Losses, if any, incurred
in
connection with any Final Recovery Determinations made during the related
Prepayment Period; (ii) whether and the extent to which such Realized Losses
constituted Bankruptcy Losses; and (iii) the respective portions of such
Realized Losses allocable to interest and allocable to principal. Prior to
each
Distribution Date, the Servicer shall also determine as to each Mortgage
Loan:
(A) the total amount of Realized Losses, if any, incurred in connection with
any
Deficient Valuations made during the related Prepayment Period; and (B) the
total amount of Realized Losses, if any, incurred in connection with Debt
Service Reductions in respect of Monthly Payments due during the related
Due
Period. The information described in the two preceding sentences that is
to be
supplied by the Servicer shall be either included in the related Remittance
Report or evidenced by an Officers’ Certificate delivered to the Trust
Administrator by the Servicer not later than the 18th of the calendar month
in
which such Distribution Date occurs (or, if such 18th day is not a Business
Day
(other than a Saturday), then on the next succeeding Business Day, or, if
such
18th day is a Saturday, then on the preceding Business Day), immediately
following the end of (x) in the case of Bankruptcy Losses allocable to interest,
the Due Period during which any such Realized Loss was incurred, and (y)
in the
case of all other Realized Losses, the Prepayment Period during which any
such
Realized Loss was incurred.
(b) All
Realized Losses on the Mortgage Loans shall be allocated by the Trust
Administrator on each Distribution Date in the following order of priority:
(i) to
Net
Monthly Excess Cashflow;
(ii) to
the
Class CE Certificates, until the Certificate Principal Balance thereof has
been
reduced to zero;
(iii) to
the
Class M-11 Certificates, until the Certificate Principal Balance thereof
has
been reduced to zero;
(iv) to
the
Class M-10 Certificates, until the Certificate Principal Balance thereof
has
been reduced to zero;
(v) to
the
Class M-9 Certificates, until the Certificate Principal Balance thereof has
been
reduced to zero;
(vi) to
the
Class M-8 Certificates, until the Certificate Principal Balance thereof has
been
reduced to zero;
(vii) to
the
Class M-7 Certificates, until the Certificate Principal Balance thereof has
been
reduced to zero;
(viii) to
the
Class M-6 Certificates, until the Certificate Principal Balance thereof has
been
reduced to zero;
(ix) to
the
Class M-5 Certificates, until the Certificate Principal Balance thereof has
been
reduced to zero;
(x) to
the
Class M-4 Certificates, until the Certificate Principal Balance thereof has
been
reduced to zero;
(xi) to
the
Class M-3 Certificates, until the Certificate Principal Balance thereof has
been
reduced to zero;
(xii) to
the
Class M-2 Certificates, until the Certificate Principal Balance thereof has
been
reduced to zero; and
(xiii) to
the
Class M-1 Certificates, until the Certificate Principal Balance thereof has
been
reduced to zero.
All
Realized Losses to be allocated to the Certificate Principal Balances of
all
Classes on any Distribution Date shall be so allocated after the actual
distributions to be made on such date as provided above. All references above
to
the Certificate Principal Balance of any Class of Certificates shall be to
the
Certificate Principal Balance of such Class immediately prior to the relevant
Distribution Date, before reduction thereof by any Realized Losses, in each
case
to be allocated to such Class of Certificates, on such Distribution
Date.
Any
allocation of Realized Losses to a Mezzanine Certificate on any Distribution
Date shall be made by reducing the Certificate Principal Balance thereof
by the
amount so allocated; any allocation of Realized Losses to a Class CE Certificate
shall be made by reducing the amount otherwise payable in respect thereof
pursuant to Section 4.01(a)(5)(iv). No allocations of any Realized Losses
shall be made to the Certificate Principal Balances of the Class A Certificates
or the Class P Certificates.
As
used
herein, an allocation of a Realized Loss on a “pro
rata
basis”
among two or more specified Classes of Certificates means an allocation on
a
pro
rata
basis,
among the various Classes so specified, to each such Class of Certificates
on
the basis of their then outstanding Certificate Principal Balances prior
to
giving effect to distributions to be made on such Distribution Date. All
Realized Losses and all other losses allocated to a Class of Certificates
hereunder will be allocated among the Certificates of such Class in proportion
to the Percentage Interests evidenced thereby.
(c) All
Realized Losses on the Group I Mortgage Loans shall be allocated on each
Distribution Date first, to REMIC I Regular Interest I until the Uncertificated
Balance of such REMIC I Regular Interest has been reduced to zero and second,
to
REMIC I Regular Interest I-1-A through REMIC I Regular Interest I-60-B, starting
with the lowest numerical denomination until such REMIC I Regular Interest
has
been reduced to zero, provided that, for REMIC I Regular Interests with the
same
numerical denomination, such Realized Losses shall be allocated pro
rata
between
such REMIC I Regular Interests. All Realized Losses on the Group II Mortgage
Loans shall be allocated on each Distribution Date first, to REMIC I Regular
Interest II until the Uncertificated Balance of such REMIC I Regular Interest
has been reduced to zero and second, to REMIC I Regular Interest II-1-A through
REMIC I Regular Interest II-60-B, starting with the lowest numerical
denomination until such REMIC I Regular Interest has been reduced to zero,
provided that, for REMIC I Regular Interests with the same numerical
denomination, such Realized Losses shall be allocated pro
rata
between
such REMIC I Regular Interests.
(d) The
REMIC
II Marker Percentage of all Realized Losses on the Mortgage Loans shall be
allocated by the Trustee on each Distribution Date to the following REMIC
II
Regular Interests in the specified percentages, as follows:
(i) to
Uncertificated Interest payable to the REMIC II Regular Interest II-LTAA
and
REMIC II Regular Interest II-LTZZ up to an aggregate amount equal to the
REMIC
II Interest Loss Allocation Amount, 98% and 2%, respectively;
(ii) to
the
Uncertificated Balances of the REMIC II Regular Interest II-LTAA and REMIC
II
Regular Interest II-LTZZ up to an aggregate amount equal to the REMIC II
Principal Loss Allocation Amount, 98% and 2%, respectively;
(iii) to
the
Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular
Interest II-LTM11 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Balance of REMIC II Regular Interest
II-LTM11 has been reduced to zero;
(iv) to
the
Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular
Interest II-LTM10 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Balance of REMIC II Regular Interest
II-LTM10 has been reduced to zero;
(v)
to the
Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular
Interest II-LTM9 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Balance of REMIC II Regular Interest
II-LTM9 has been reduced to zero;
(vi) to
the
Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular
Interest II-LTM8 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Balance of REMIC II Regular Interest
II-LTM8 has been reduced to zero;
(vii) to
the
Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular
Interest II-LTM7 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Balance of REMIC II Regular Interest
II-LTM7 has been reduced to zero;
(viii) to
the
Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular
Interest II-LTM6 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Balance of REMIC II Regular Interest
II-LTM6 has been reduced to zero;
(ix) to
the
Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular
Interest II-LTM5 and REMIC II Regular Interest III-LTZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Balance of REMIC II Regular Interest
II-LTM5 has been reduced to zero;
(x) to
the
Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular
Interest II-LTM4 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Balance of REMIC II Regular Interest
II-LTM4 has been reduced to zero;
(xi) to
the
Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular
Interest II-LTM3 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Balance of REMIC II Regular Interest
II-LTM3 has been reduced to zero;
(xii) to
the
Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular
Interest II-LTM2 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Balance of REMIC II Regular Interest
II-LTM2 has been reduced to zero and
(xiii) to
the
Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular
Interest II-LTM1 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Balance of REMIC II Regular Interest
II-LTM1 has been reduced to zero.
| SECTION 4.05. |
Compliance
with Withholding Requirements.
|
Notwithstanding
any other provision of this Agreement, the Trust Administrator shall comply
with
all federal withholding requirements respecting payments to Certificateholders
of interest or original issue discount that the Trust Administrator reasonably
believes are applicable under the Code. The consent of Certificateholders
shall
not be required for such withholding. In the event the Trust Administrator
does
withhold any amount from interest or original issue discount payments or
advances thereof to any Certificateholder pursuant to federal withholding
requirements, the Trust Administrator shall indicate the amount withheld
to such
Certificateholders.
| SECTION 4.06. |
Exchange
Commission Filings; Additional
Information.
|
(a) (i)
Within 15 days after each Distribution Date (subject to permitted extensions
under the Exchange Act), the Trust Administrator shall, in accordance with
industry standards, prepare and file with the Commission via the Electronic
Data
Gathering and Retrieval System (“XXXXX”), a distribution report on Form 10-D,
signed by the Master Servicer, with a copy of the Monthly Statement to be
furnished by the Trust Administrator to the Certificateholders for such
Distribution Date attached thereto. Any disclosure in addition to the Monthly
Statement that is required to be included on Form 10-D (“Additional Form 10-D
Disclosure”) shall be reported by the parties set forth on Exhibit P to the
Depositor and the Trust Administrator and directed and approved by the Depositor
pursuant to the following paragraph, and the Trust Administrator will have
no
duty or liability for any failure hereunder to determine or prepare any
Additional Form 10-D Disclosure, except as set forth in the next
paragraph.
(ii) As
set
forth on Exhibit P hereto, within 5 calendar days after the related Distribution
Date, (i) the parties described on Exhibit P shall be required to provide
to the
Trust Administrator and to the Depositor, to the extent known by a Responsible
Officer thereof, in XXXXX-compatible format, or in such other format as
otherwise agreed upon by the Trust Administrator and such party, the form
and
substance of any Additional Form 10-D Disclosure, if applicable, together
with
an Additional Disclosure Notification in the form of Exhibit Q hereto and
(ii)
the Depositor will approve, as to form and substance, or disapprove, as the
case
may be, the inclusion of the Additional Form 10-D Disclosure on Form 10-D.
The
Trust Administrator has no duty under this Agreement to monitor or enforce
the
performance by the other parties listed on Exhibit P of their duties under
this
paragraph or proactively solicit or procure from such other parties any
Additional Form 10-D Disclosure information. The Depositor will be responsible
for any reasonable fees and expenses assessed or incurred by the Trust
Administrator in connection with including any Additional Form 10-D Disclosure
on Form 10-D pursuant to this paragraph.
Form
10-D
requires the registrant to indicate (by checking “yes” or “no”) that it “(1) has
filed all reports required to be filed by Section 13 or 15(d) of the Exchange
Act during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such
filing requirements for the past 90 days.” The Depositor hereby represents to
the Trust Administrator that the Depositor has filed all such required reports
during the preceding 12 months and that it has been subject to such filing
requirement for the past 90 days. The Depositor shall notify the Trust
Administrator in writing, no later than the fifth calendar day after the
related
Distribution Date with respect to the filing of a report on Form 10-D, if
the
answer to either question should be “no.” The Trust Administrator shall be
entitled to rely on such representations in preparing, executing and/or filing
any such report.
After
preparing the Form 10-D, the Trust Administrator shall forward electronically
a
copy of the Form 10-D to the Depositor (provided that such Form 10-D includes
any Additional Form 10-D Disclosure). Within two Business Days after receipt
of
such copy, but no later than the 12th
calendar
day after the Distribution Date, the Depositor shall notify the Trust
Administrator in writing (which may be furnished electronically) of any changes
to or approval of such Form 10-D. In the absence of receipt of any written
changes or approval, the Trust Administrator shall be entitled to assume
that
such Form 10-D is in final form and the Trust Administrator may proceed with
the
process for execution and filing of the Form 10-D. A duly authorized
representative of the Master Servicer shall sign each Form 10-D. If a Form
10-D
cannot be filed on time or if a previously filed Form 10-D needs to be amended,
the Trust Administrator will follow the procedures set forth in Section
4.06(a)(vi). Promptly (but no later than one Business Day) after filing with
the
Commission, the Trust Administrator will make available on its internet website
a final executed copy of each Form 10-D filed by the Trust Administrator.
Each
party to this Agreement acknowledges that the performance by each of the
Master
Servicer and the Trust Administrator of its duties under this Section
4.06(a)(ii) related to the timely preparation, execution and filing of Form
10-D
is contingent upon such parties strictly observing all applicable deadlines
in
the performance of their duties under this Section 4.06(a)(ii). The Depositor
acknowledges that the performance by each of the Master Servicer and the
Trust
Administrator of its respective duties under this Section 4.06(a)(ii) related
to
the preparation and execution of Form 10-D is also contingent upon the Servicer,
the Custodian and any Servicing Function Participant strictly observing
deadlines no later than those set forth in this paragraph or in the Custodial
Agreement, that are applicable to the parties to this Agreement or in the
Custodial Agreement in the delivery to the Trust Administrator of any necessary
Additional Form 10-D Disclosure. Neither the Master Servicer nor the Trust
Administrator shall have any liability for any loss, expense, damage or claim
arising out of or with respect to any failure to properly prepare or execute
and/or timely file such Form 10-D, where such failure results from the Trust
Administrator’s inability or failure to obtain or receive, on a timely basis,
any information from any other party hereto or any Servicing Function
Participant needed to prepare, arrange for execution or file such Form 10-D,
not
resulting from its own negligence, bad faith or willful misconduct.
Notwithstanding anything contained herein, the Trust Administrator shall
promptly notify the Depositor if a Form 10-D cannot be timely filed prior
to the
related filing deadline.
(iii) Within
four (4) Business Days after the occurrence of an event requiring disclosure
on
Form 8-K (each such event, a “Reportable Event”), and if requested by the
Depositor, the Trust Administrator shall prepare and file on behalf of the
Trust
a Form 8-K, as required by the Exchange Act, provided that the Depositor
shall
file the initial Form 8-K in connection with the issuance of the Certificates.
Any disclosure or information related to a Reportable Event or that is otherwise
required to be included on Form 8-K (other than the initial Form 8-K) (“Form 8-K
Disclosure Information”) shall be reported by the parties set forth on Exhibit P
and, pursuant to the following paragraph, directed and approved by the
Depositor, and the Trust Administrator will have no duty or liability for
any
failure hereunder to determine or prepare any Form 8-K Disclosure Information
or
Form 8-K, except as set forth in the next paragraph.
As
set
forth on Exhibit P hereto, for so long as the Trust is subject to the Exchange
Act reporting requirements, no later than close of business (New York City
time)
on the 2nd Business Day after the occurrence of a Reportable Event (i) the
parties set forth on Exhibit P shall be required pursuant to Section 4.06(a)(v)
below to provide to the Trust Administrator and the Depositor, to the extent
known by a Responsible Officer thereof, in XXXXX-compatible format, or in
such
other format as otherwise agreed upon by the Trust Administrator, the Depositor
and such party, the form and substance of any Form 8-K Disclosure Information,
if applicable, together with an Additional Disclosure Notification and (ii)
the
Depositor will approve, as to form and substance, or disapprove, as the case
may
be, the inclusion of the Form 8-K Disclosure Information on Form 8-K. The
Depositor will be responsible for any reasonable fees and expenses assessed
or
incurred by the Trust Administrator in connection with including any Form
8-K
Disclosure Information on Form 8-K pursuant to this Section.
After
preparing the Form 8-K, the Trust Administrator shall forward electronically
a
copy of the Form 8-K to the Depositor. Promptly, but no later than the close
of
business on the third Business Day after the Reportable Event, the Depositor
shall notify the Trust Administrator in writing (which may be furnished
electronically) of any changes to or approval of such Form 8-K. In the absence
of receipt of any written changes or approval, the Trust Administrator shall
be
entitled to assume that such Form 8-K is in final form and the Trust
Administrator may proceed with the process for execution and filing of the
Form
8-K. A duly authorized representative of the Master Servicer shall sign each
Form 8-K. If a Form 8-K cannot be filed on time or if a previously filed
Form
8-K needs to be amended, the Trust Administrator will follow the procedures
set
forth in Section 4.06(a)(vi). Promptly (but no later than one Business Day)
after filing with the Commission, the Trust Administrator will make available
on
its internet website a final executed copy of each Form 8-K filed by the
Trust
Administrator. The parties to this Agreement acknowledge that the performance
by
each of the Master Servicer and the Trust Administrator of its duties under
this
Section 4.06(a)(iii) related to the timely preparation, execution and filing
of
Form 8-K is contingent upon such parties strictly observing all applicable
deadlines in the performance of their duties under this Section 4.06(a)(iii).
The Depositor acknowledges that the performance by each of the Master Servicer
and the Trust Administrator of its duties under this Section 4.06(a)(iii)
related to the preparation, execution and filing of Form 8-K is also contingent
upon the Servicer, the Custodian (if a party to this Agreement) and any
Servicing Function Participant strictly observing deadlines no later than
those
set forth in this paragraph (or as set forth in the Custodial Agreement with
respect to the Custodian) that are applicable to the parties to this Agreement
(or the Custodial Agreement) in the delivery to the Trust Administrator of
any
necessary Form 8-K Disclosure Information pursuant to any related servicing
agreement, the Custodial Agreement or any other applicable agreement. Neither
the Master Servicer nor the Trust Administrator shall have any liability
for any
loss, expense, damage or claim arising out of or with respect to any failure
to
properly prepare, execute or timely file such Form 8-K, where such failure
results from the Trust Administrator’s inability or failure to obtain or
receive, on a timely basis, any information from the Servicer, the Custodian
or
any Servicing Function Participant (other than any Servicing Function
Participant engaged by the Master Servicer or Trust Administrator) needed
to
prepare, arrange for execution or file such Form 8-K, not resulting from
its own
negligence, bad faith or willful misconduct. Notwithstanding anything contained
herein, the Trust Administrator shall promptly notify the Depositor if a
Form
8-K cannot be timely filed prior to the related filing deadline.
(iv)
On
or
prior to the 90th day after the end of each fiscal year of the Trust or such
earlier date as may be required by the Exchange Act (the “10-K Filing Deadline”)
(it being understood that the fiscal year for the Trust ends on December
31st of
each year), commencing in March 2007, the Trust Administrator shall prepare
and
file on behalf of the Trust a Form 10-K, in form and substance as required
by
the Exchange Act. Each such Form 10-K shall include the following items,
in each
case to the extent they have been delivered to the Trust Administrator within
the applicable time frames set forth in this Agreement:
(a) an
annual
compliance statement for the Servicer, the Master Servicer, the Trust
Administrator and any Servicing Function Participant engaged by such parties
(each, a “Reporting
Servicer”)
as
described under Section 3.20 of this Agreement, provided,
however,
that
the Trust Administrator, at its discretion, may omit from the Form 10-K any
annual compliance statement that is not required to be filed with such Form
10-K
pursuant to Regulation AB;
(b) (A)
the
annual reports on assessment of compliance with Servicing Criteria for each
Reporting Servicer, as described under Section 3.21 of this Agreement and
(B) if
each Reporting Servicer’s report on assessment of compliance with Servicing
Criteria identifies any material instance of noncompliance, disclosure
identifying such instance of noncompliance, or if each Reporting Servicer’s
report on assessment of compliance with Servicing Criteria is not included
as an
exhibit to such Form 10-K, disclosure that such report is not included and
an
explanation why such report is not included, provided,
however,
that
the Trust Administrator, at its discretion, may omit from the Form 10-K any
assessment of compliance or attestation report described in clause (c) below
that is not required to be filed with such Form 10-K pursuant to Regulation
AB’
(c) (A)
the
registered public accounting firm attestation report for each Reporting
Servicer, as described under Section 3.21 of this Agreement and (B) if any
registered public accounting firm attestation report identifies any material
instance of noncompliance, disclosure identifying such instance of
noncompliance, or if any such registered public accounting firm attestation
report is not included as an exhibit to such Form 10-K, disclosure that such
report is not included and an explanation why such report is not included;
and
(d) a
Xxxxxxxx-Xxxxx Certification as described in this Section 4.06(a)(iv).
Any
disclosure or information in addition to (a) through (d) above that is required
to be included on Form 10-K (“Additional
Form 10-K Disclosure”)
shall
be reported by the parties set forth on Exhibit P to the Depositor and the
Trust
Administrator and directed and approved by the Depositor pursuant to the
following paragraph, and the Trust Administrator will have no duty or liability
for any failure hereunder to determine or prepare any Additional Form 10-K
Disclosure, except as set forth in the next paragraph.
As
set
forth on Exhibit P hereto, no later than March 15th
(with no
cure period) of each year that the Trust is subject to the Exchange Act
reporting requirements, commencing in 2007, (i) the parties described on
Exhibit
P shall be required to provide to the Trust Administrator and to the Depositor,
to the extent known by a Responsible Officer thereof, in XXXXX-compatible
format, or in such other format as otherwise agreed upon by the Trust
Administrator and such party, the form and substance of any Additional Form
10-K
Disclosure, if applicable, together with an Additional Disclosure Notification,
and (ii) the Depositor will approve, as to form and substance, or disapprove,
as
the case may be, the inclusion of the Additional Form 10-K Disclosure on
Form
10-K. The Trust Administrator has no duty under this Agreement to monitor
or
enforce the performance by the other parties listed on Exhibit P of their
duties
under this paragraph or proactively solicit or procure from such other parties
any Additional Form 10-K Disclosure information. The Depositor will be
responsible for any reasonable fees and expenses assessed or incurred by
the
Trust Administrator in connection with including any Additional Form 10-K
Disclosure on Form 10-K pursuant to this paragraph.
Form
10-K
requires the registrant to indicate (by checking “yes” or “no”) that it “(1) has
filed all reports required to be filed by Section 13 or 15(d) of the Exchange
Act during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such
filing requirements for the past 90 days.” The Depositor hereby represents to
the Trust Administrator that the Depositor has filed all such required reports
during the preceding 12 months and that it has been subject to such filing
requirement for the past 90 days. The Depositor shall notify the Trust
Administrator in writing, no later than March 15th with respect to the filing
of
a report on Form 10-K, if the answer to either question should be “no.” The
Trust Administrator shall be entitled to rely on such representations in
preparing, executing and/or filing any such report.
After
preparing the Form 10-K, the Trust Administrator shall forward electronically
a
copy of the Form 10-K to the Depositor. Within three Business Days after
receipt
of such copy, but no later than March 25th, the Depositor shall notify the
Trust
Administrator in writing (which may be furnished electronically) of any changes
to or approval of such Form 10-K. In the absence of receipt of any written
changes or approval, the Trust Administrator shall be entitled to assume
that
such Form 10-K is in final form, and the Trust Administrator may proceed
with
the process for execution and filing of the Form 10-K. A senior officer of
the
Master Servicer in charge of the master servicing function shall sign the
Form
10-K. If a Form 10-K cannot be filed on time or if a previously filed Form
10-K
needs to be amended, the Trust Administrator will follow the procedures set
forth in Section 4.06(a)(vi). Promptly (but no later than one Business Day)
after filing with the Commission, the Trust Administrator will make available
on
its internet website a final executed copy of each Form 10-K filed by the
Trust
Administrator. The parties to this Agreement acknowledge that the performance
by
each of the Master Servicer and the Trust Administrator of its duties under
this
Section 4.04(a)(iv) related to the timely preparation, execution and filing
of
Form 10-K is contingent upon such parties strictly observing all applicable
deadlines in the performance of their duties under this Section 4.04(a)(iv),
Section 3.20 and Section 3.21. The Depositor acknowledges that the performance
by each of the Master Servicer and the Trust Administrator of its duties
under
this Section 4.04(a)(iv) related to the timely preparation and execution
of Form
10-K is also contingent upon the Servicer, the Custodian and any Servicing
Function Participant strictly observing deadlines no later than those set
forth
in this paragraph (or as set forth in the Custodial Agreement with respect
to
the Custodian) that are applicable to the parties to this Agreement (or the
Custodial Agreement) in the delivery to the Trust Administrator of any necessary
Additional Form 10-K Disclosure, any annual statement of compliance and any
assessment of compliance and attestation pursuant to the related Servicing
Agreement, the Custodial Agreement or any other applicable agreement. Neither
the Master Servicer nor the Trust Administrator shall have any liability
for any
loss, expense, damage or claim arising out of or with respect to any failure
to
properly prepare, execute and/or timely file such Form 10-K, where such failure
results from the Trust Administrator’s inability or failure to obtain or
receive, on a timely basis, any information from the Servicer, the Custodian
or
any Servicing Function Participant needed to prepare, arrange for execution
or
file such Form 10-K, not resulting from its own negligence, bad faith or
willful
misconduct. Notwithstanding anything contained herein, the Trust Administrator
shall promptly notify the Depositor if a Form 10-K cannot be timely filed
prior
to the related filing deadline.
Each
Form
10-K shall include a Xxxxxxxx-Xxxxx Certification, substantially in the form
set
forth in Exhibit J-1 attached hereto, required to be included therewith pursuant
to the Xxxxxxxx-Xxxxx Act. The Servicer and the Trust Administrator shall
provide, and each such party shall cause any Servicing Function Participant
engaged by it to provide, to the Person who signs the Xxxxxxxx-Xxxxx
Certification (the “Certifying
Person”),
by
March 15th (with no cure period) of each year in which the Trust is subject
to
the reporting requirements of the Exchange Act and otherwise within a reasonable
period of time upon request, a certification (each, a “Back-Up
Certification”),
in
the form attached hereto as Exhibit J-2, upon which the Certifying Person,
the
entity for which the Certifying Person acts as an officer, and such entity’s
officers, directors and Affiliates (collectively with the Certifying Person,
“Certification
Parties”)
can
reasonably rely. The senior officer of the Master Servicer in charge of the
master servicing function shall serve as the Certifying Person on behalf
of the
Trust. Such officer of the Certifying Person can be contacted by e-mail at
xxx.xxx.xxxxxxxxxxxxx@xxxxxxxxxx.xxx or by facsimile at 000-000-0000. In
the
event any such party or any Servicing Function Participant engaged by such
party
is terminated or resigns pursuant to the terms of this Agreement, or any
applicable sub-servicing agreement, as the case may be, such party shall
provide
a Back-Up Certification to the Certifying Person pursuant to this Section
4.06
(a)(iv) with respect to the period of time it was subject to this Agreement
or
any applicable sub-servicing agreement, as the case may be. Notwithstanding
the
foregoing, (i) the Master Servicer and the Trust Administrator shall not
be
required to deliver a Back-Up Certification to each other if both are the
same
Person and the Master Servicer is the Certifying Person and (ii) the Master
Servicer shall not be obligated to sign the Xxxxxxxx-Xxxxx Certification
in the
event that it does not receive any Back-Up Certification required to be
furnished to it pursuant to this section or any Servicing Agreement or any
other
agreement.
(v) With
respect to any Additional Form 10-D Disclosure, Additional Form 10-K Disclosure
or any Form 8-K Disclosure Information (collectively, the “Additional
Disclosure”) relating to the Trust Fund, the Trust Administrator’s obligation to
include such Additional Information in the applicable Exchange Act report
is
subject to its receipt of such information from the entity that is indicated
in
Exhibit P as the responsible party for providing such information, if other
than
the Trust Administrator, as and when required as described in Section
4.06(a)(ii) through (iv) above. Each of the Master Servicer, the Servicer
and
Depositor hereby agree to notify and to provide, to the extent known, to
the
Trust Administrator and the Depositor, all Additional Disclosure relating
to the
Trust Fund, with respect to which such party is the responsible party for
providing that information, as indicated in Exhibit P hereof. The Swap Provider
will be obligated pursuant to the Interest Rate Swap Agreement to provide
to the
Trust Administrator and the Depositor any information that may be required
to be
included in any Form 10-D, Form 8-K or Form 10-K. The Servicer shall be
responsible for determining the pool concentration applicable to any
Sub-Servicer at any time, for purposes of disclosure as required by Items
1108
and 1110 of Regulation AB.
(vi) On
or
prior to January 30 of the first year in which the Trust Administrator is
able
to do so under applicable law, the Trust Administrator shall prepare and
file a
Form 15 Suspension Notification relating to the automatic suspension of
reporting in respect of the Trust under the Exchange Act.
In
the
event that the Trust Administrator is unable to timely file with the Commission
all or any required portion of any Form 8-K, Form 10-D or Form 10-K required
to
be filed pursuant to this Agreement because required disclosure information
was
either not delivered to it or was delivered to it after the delivery deadlines
set forth in this Agreement or for any other reason, the Trust Administrator
will promptly electronically notify the Depositor. In the case of Form 10-D
and
Form 10-K, the parties to this Agreement will cooperate to prepare and file
a
Form 12b-25 and a Form 10-D/A and Form 10-K/A as applicable, pursuant to
Rule
12b-25 of the Exchange Act. In the case of Form 8-K, the Trust Administrator
will, upon receipt of all required Form 8-K Disclosure Information and upon
the
approval and direction of the Depositor, include such disclosure information
on
the next Form 10-D. In the event that any previously filed Form 8-K, Form
10-D
or Form 10-K needs to be amended in connection with any Additional Form 10-D
Disclosure (other than, in the case of Form 10-D, for the purpose of restating
any Monthly Statement), Additional Form 10-K Disclosure or Form 8-K Disclosure
Information, the Trust Administrator will electronically notify the Depositor
and such other parties to the transaction as are affected by such amendment,
and
such parties will cooperate to prepare any necessary Form 8-K/A, Form 10-D/A
or
Form 10-K/A. Any Form 15, Form 12b-25 or any amendment to Form 8-K, Form
10-D or
Form 10-K shall be signed by a duly authorized representative, or senior
officer
in charge of master servicing, as applicable, of the Master Servicer. The
parties to this Agreement acknowledge that the performance by each of the
Master
Servicer and the Trust Administrator of its duties under this Section
4.06(a)(vi) related to the timely preparation, execution and filing of Form
15,
a Form 12b-25 or any amendment to Form 8-K, Form 10-D or Form 10-K is contingent
upon each such party performing its duties under this Section. Neither the
Master Servicer nor the Trust Administrator shall have any liability for
any
loss, expense, damage or claim arising out of or with respect to any failure
to
properly prepare, execute and/or timely file any such Form 15, Form 12b-25
or
any amendments to Form 8-K, Form 10-D or Form 10-K, where such failure results
from the Trust Administrator’s inability or failure to obtain or receive, on a
timely basis, any information from the Servicer, the Custodian or any Servicing
Function Participant needed to prepare, arrange for execution or file such
Form
15, Form 12b-25 or any amendments to Form 8-K, Form 10-D or Form 10-K, not
resulting from its own negligence, bad faith or willful misconduct.
The
Depositor agrees to promptly furnish to the Trust Administrator, from time
to
time upon request, such further information, reports and financial statements
within its control related to this Agreement, and the Mortgage Loans as the
Trust Administrator reasonably deems appropriate to prepare and file all
necessary reports with the Commission. The Trust Administrator shall have
no
responsibility to file any items other than those specified in this Section
4.06; provided, however, the Trust Administrator will cooperate with the
Depositor in connection with any additional filings with respect to the Trust
Fund as the Depositor deems necessary under the Exchange Act. Fees and expenses
incurred by the Trust Administrator in connection with this Section 4.06
shall
not be reimbursable from the Trust Fund.
(vii) [Reserved].
(b) The
Trust
Administrator shall indemnify and hold harmless the Depositor and its officers,
directors and affiliates from and against any losses, damages, penalties,
fines,
forfeitures, reasonable and necessary legal fees and related costs, judgments
and other costs and expenses arising out of or based upon (i) a breach of
the
Trust Administrator’s obligations under this Section 4.06 or the Trust
Administrator’s negligence, bad faith or willful misconduct in connection
therewith or (ii) any material misstatement or omission in the Annual Statement
of Compliance and the Assessment of Compliance delivered by the Trust
Administrator pursuant to Section 3.20 and Section 3.21.
The
Depositor shall indemnify and hold harmless the Trust Administrator and the
Master Servicer and their respective officers, directors and affiliates from
and
against any losses, damages, penalties, fines, forfeitures, reasonable and
necessary legal fees and related costs, judgments and other costs and expenses
arising out of or based upon a breach of the obligations of the Depositor
under
this Section 4.06 or the Depositor’s negligence, bad faith or willful misconduct
in connection therewith.
The
Master Servicer shall indemnify and hold harmless the Trust Administrator
and
the Depositor and their respective officers, directors and affiliates from and
against any losses, damages, penalties, fines, forfeitures, reasonable and
necessary legal fees and related costs, judgments and other costs and expenses
arising out of or based upon (i) a breach of the obligations of the Master
Servicer under this Section 4.06 or the Master Servicer’s negligence, bad faith
or willful misconduct in connection therewith or (ii) any material misstatement
or omission in the Statement as to Compliance delivered by the Master Servicer
pursuant to Section 3.20 or the Assessment of Compliance delivered by the
Master
Servicer pursuant to Section 3.21.
The
Servicer shall indemnify and hold harmless the Master Servicer, Trust
Administrator and the Depositor and their respective officers, directors
and
affiliates from and against any losses, damages, penalties, fines, forfeitures,
reasonable and necessary legal fees and related costs, judgments and other
costs
and expenses arising out of or based upon (i) a breach of the obligations
of the
Servicer under this Section 4.06 and (ii) any material misstatement or omission
in the Annual Statement of Compliance delivered by the Servicer pursuant
to
Section 3.20 or the Assessment of Compliance delivered by the Servicer pursuant
to Section 3.21.
Notwithstanding
the provisions set forth in this Agreement, the Servicer shall not be obligated
to provide any indemnification or reimbursement hereunder to any other party
for
any losses, damages, penalties, fines, forfeitures, legal fees and expenses
and
related costs, judgments, and any other costs, fees and expenses that any
of
them may sustain which are indirect, consequential, punitive or special in
nature.
If
the
indemnification provided for herein is unavailable or insufficient to hold
harmless the Depositor, the Master Servicer or the Trust Administrator, as
applicable, then the defaulting party, in connection with a breach of its
respective obligations under this Section 4.06 or its respective negligence,
bad
faith or willful misconduct in connection therewith, agrees that it shall
contribute to the amount paid or payable by the other parties as a result
of the
losses, claims, damages or liabilities of the other party in such proportion
as
is appropriate to reflect the relative fault and the relative benefit of
the
respective parties.
(c) Nothing
shall be construed from the foregoing subsections (a) and (b) to require
the
Trust Administrator or any officer, director or Affiliate thereof to sign
any
Form 10-K or any certification contained therein. Furthermore, the inability
of
the Trust Administrator to file a Form 10-K as a result of the lack of required
information as set forth in Section 4.06(a) or required signatures on such
Form
10-K or any certification contained therein shall not be regarded as a breach
by
the Trust Administrator of any obligation under this Agreement.
(d) Notwithstanding
the provisions of Section 11.01, this Section 4.06 may be amended without
the
consent of the Certificateholders.
| SECTION 4.07. |
Net
WAC Rate Carryover Reserve Account.
|
No
later
than the Closing Date, the Trust Administrator shall establish and maintain
with
itself a separate, segregated trust account titled, “Xxxxx Fargo Bank, N.A. as
Trust Administrator, in trust for the registered holders of MASTR Asset Backed
Securities Trust 2006-NC3, Mortgage Pass-Through Certificates, Series
2006-NC3—Net WAC Rate Carryover Reserve Account.” Such account shall be an
Eligible Account and amounts therein shall be held uninvested. All amounts
deposited in the Net WAC Rate Carryover Reserve Account shall be distributed
to
the Holders of the Class A Certificates and/or the Mezzanine Certificates
in the
manner set forth in Section 4.01.
On
each
Distribution Date as to which there is a Net WAC Rate Carryover Amount payable
to the Class A Certificates and/or the Mezzanine Certificates, the Trust
Administrator has been directed by the Class CE Certificateholders to, and
therefore will, deposit into the Net WAC Rate Carryover Reserve Account the
amounts described in Section 4.01(e)(v), rather than distributing such
amounts to the Class CE Certificateholders. On each such Distribution Date,
the
Trust Administrator shall hold all such amounts for the benefit of the Holders
of the Class A Certificates and the Mezzanine Certificates, and will distribute
such amounts to the Holders of the Class A Certificates and/or the Mezzanine
Certificates in the amounts and priorities set forth in
Section 4.01(a).
It
is the
intention of the parties hereto that, for federal and state income and state
and
local franchise tax purposes, the Net WAC Rate Carryover Reserve Account
be
disregarded as an entity separate from the Holder of the Class CE Certificates
unless and until the date when either (a) there is more than one Class CE
Certificateholder or (b) any Class of Certificates in addition to the Class
CE
Certificates is recharacterized as an equity interest in the Net WAC Rate
Carryover Reserve Account for federal income tax purposes, in which case
it is
the intention of the parties hereto that, for federal and state income and
state
and local franchise tax purposes, the Net WAC Rate Carryover Reserve Account
be
treated as a grantor trust; provided, that the Trust Administrator shall
not be
required to prepare and file grantor trust tax returns in respect of such
grantor trust unless it receives additional reasonable compensation (not
to
exceed $10,000 per year) from the Holders of the Class CE Certificates for
the
preparation of such filings, written notification recognizing the creation
of a
grantor trust and comparable documentation evidencing the grantor trust,
if any.
All
amounts deposited into the Net WAC Rate Carryover Reserve Account shall be
treated as amounts distributed by REMIC III to the Holder of the Class CE
Interest and by REMIC IV to the Holder of the Class CE Certificates. The
Net WAC
Rate Carryover Reserve Account will be an “outside reserve fund” within the
meaning of Treasury Regulation Section 1.860G-2(h). Upon the termination
of the
Trust, or the payment in full of the Class A and the Mezzanine Certificates,
all
amounts remaining on deposit in the Net WAC Rate Carryover Reserve Account
will
be released by the Trust and distributed to the Seller or its designee. The
Net
WAC Rate Carryover Reserve Account will be part of the Trust but not part
of any
REMIC and any payments to the Holders of the Class A and the Mezzanine
Certificates of Net WAC Rate Carryover Amounts will not be payments with
respect
to a “regular interest” in a REMIC within the meaning of Code Section
860(G)(a)(1).
By
accepting a Class CE Certificate, each Class CE Certificateholder hereby
agrees
to direct the Trust Administrator, and the Trust Administrator hereby is
directed, to deposit into the Net WAC Rate Carryover Reserve Account the
amounts
described above on each Distribution Date as to which there is any Net WAC
Rate
Carryover Amount rather than distributing such amounts to the Class CE
Certificateholders. By accepting a Class CE Certificate, each Class CE
Certificateholder further agrees that such direction is given for good and
valuable consideration, the receipt and sufficiency of which is acknowledged
by
such acceptance.
For
federal income tax purposes, the Depositor shall provide the Trust Administrator
the value of the right of the Class A and Mezzanine Certificates to receive
Net
WAC Rate Carryover Amounts from the Net WAC Rate Carryover Reserve Account
and
the Swap Account.
| SECTION 4.08. |
Swap
Account.
|
(a) On
the
Closing Date, there is hereby established a separate trust (the “Supplemental
Interest Trust”), into which the Depositor shall deposit: (i) the Interest Rate
Swap Agreement and (ii) the Swap Administration Agreement. The Supplemental
Interest Trust shall be maintained by the Supplemental
Interest Trust Trustee.
No
later than the Closing Date, the Supplemental Interest Trust Trustee shall
establish and maintain with itself a separate, segregated trust account titled,
“Xxxxx Fargo Bank, N.A. as Supplemental Interest Trust Trustee, in trust for
the
registered holders of MASTR Asset Backed Securities Trust 2006-NC3, Mortgage
Pass-Through Certificates, Series 2006-NC3—Swap Account.” Such
account shall be an Eligible Account and funds on deposit therein shall be
held
separate and apart from, and shall not be commingled with, any other moneys,
including, without limitation, other moneys of the Supplemental Interest
Trust
Trustee held pursuant to this Agreement. Amounts
therein shall be held uninvested.
(b) On
each
Distribution Date, prior to any distribution to any Certificate, the
Supplemental Interest Trust Trustee shall deposit into the Swap Account:
(i) the
amount of any Net Swap Payment or Swap Termination Payment (other than any
Swap
Termination Payment resulting from a Swap Provider Trigger Event) owed to
the
Swap Provider (after taking into account any upfront payment received from
the
counterparty to a replacement interest rate swap agreement) from funds collected
and received with respect to the Mortgage Loans prior to the determination
of
Available Funds and (ii) amounts received by the Supplemental Interest Trust
Trustee from the Swap Provider, for distribution pursuant to the Swap
Administration Agreement, dated as of the Closing Date (the “Swap Administration
Agreement”), among Xxxxx Fargo Bank, N.A. in its capacity as Supplemental
Interest Trust Trustee, Xxxxx Fargo Bank, N.A. in its capacity as Swap
Administrator, Xxxxx Fargo Bank, N.A. in its capacity as Trust Administrator
and
the Seller.
(c) The
Supplemental Interest Trust will be an “outside reserve fund” within the meaning
of Treasury Regulation Section 1.860G-2(h). It
is the
intention of the parties hereto that, for federal and state income and state
and
local franchise tax purposes, the Supplemental Interest Trust be disregarded
as
an entity separate from the Holder of the Class CE Certificates unless and
until
the date when either (a) there is more than one Class CE Certificateholder
or
(b) any Class of Certificates in addition to the Class CE Certificates is
recharacterized as an equity interest in the Supplemental Interest Trust
for
federal income tax purposes, in which case it is the intention of the parties
hereto that, for federal and state income and state and local franchise tax
purposes, the Supplemental Interest Trust be treated as a grantor trust;
provided, that the Trust Administrator shall not be required to prepare and
file
grantor trust tax returns in respect of such grantor trust unless it receives
additional reasonable compensation (not to exceed $10,000 per year) from
the
Holders of the Class CE Certificates for the preparation of such filings,
written notification recognizing the creation of a grantor trust and comparable
documentation evidencing the grantor trust, if any.
(d) To
the
extent that the Supplemental Interest Trust is determined to be a separate
legal
entity from the Supplemental Interest Trust Trustee, any obligation of the
Supplemental Interest Trust Trustee under the Interest Rate Swap Agreement
shall
be deemed to be an obligation of the Supplemental Interest Trust.
(e) The
Trust
Administrator shall treat the Holders of Certificates (other than the Class
P,
Class CE, Class R and Class R-X Certificates) as having entered into a notional
principal contract with respect to the Holders of the Class CE Certificates.
Pursuant to each such notional principal contract, all Holders of Certificates
(other than the Class P, Class CE, Class R and Class R-X Certificates) shall
be
treated as having agreed to pay, on each Distribution Date, to the Holder
of the
Class CE Certificates an aggregate amount equal to the excess, if any, of
(i)
the amount payable on such Distribution Date on the REMIC III Regular Interest
corresponding to such Class of Certificates over (ii) the amount payable
on such
Class of Certificates on such Distribution Date (such excess, a “Class IO
Distribution Amount”). A Class IO Distribution Amount payable from interest
collections shall be allocated pro
rata
among
such Certificates based on the excess of (a) the amount of interest otherwise
payable to such Certificates over (ii) the amount of interest payable to
such
Certificates at a per annum rate equal to the Net WAC Pass-Through Rate,
and a
Class IO Distribution Amount payable from principal collections shall be
allocated to the most subordinate Class of Certificates with an outstanding
principal balance to the extent of such balance. In addition, pursuant to
such
notional principal contract, the Holder of the Class CE Certificates shall
be
treated as having agreed to pay Net WAC Rate Carryover Amounts to the Holders
of
the Certificates (other than the Class CE, Class P, Class R and Class R-X
Certificates) in accordance with the terms of this Agreement. Any payments
to
the Certificates from amounts deemed received in respect of this notional
principal contract shall not be payments with respect to a Regular Interest
in a
REMIC within the meaning of Code Section 860G(a)(1). However, any payment
from
the Certificates (other than the Class CE, Class P, Class R and Class R-X
Certificates) of a Class IO Distribution Amount shall be treated for tax
purposes as having been received by the Holders of such Certificates in respect
of their interests in REMIC III and as having been paid by such Holders to
the
Trust Administrator pursuant to the notional principal contract. Thus, each
Certificate (other than the Class P, Class R and Class R-X Certificates)
shall
be treated as representing not only ownership of Regular Interests in REMIC
III
or REMIC IV, but also ownership of an interest in, and obligations with respect
to, a notional principal contract.
| SECTION 4.09. |
Tax
Treatment of Swap Payments and Swap Termination
Payments.
|
For
federal income tax purposes, each holder of a Class A or Mezzanine Certificate
is deemed to own an undivided beneficial ownership interest in a REMIC regular
interest and the right to receive payments from either the Net WAC Rate
Carryover Reserve Account or the Swap Account in respect of the Net WAC Rate
Carryover Amount or the obligation to make payments to the Swap Account.
For
federal income tax purposes, the Trust Administrator will account for payments
to each Class A and Mezzanine Certificates as follows: each Class A and
Mezzanine Certificate will be treated as receiving their entire payment from
REMIC III (regardless of any Swap Termination Payment or obligation under
the
Interest Rate Swap Agreement) and subsequently paying their portion of any
Swap
Termination Payment in respect of each such Class’ obligation under the Interest
Rate Swap Agreement. In the event that any such Class is resecuritized in
a
REMIC, the obligation under the Interest Rate Swap Agreement to pay any such
Swap Termination Payment (or any shortfall in Swap Provider Fee), will be
made
by one or more of the REMIC Regular Interests issued by the resecuritization
REMIC subsequent to such REMIC Regular Interest receiving its full payment
from
any such Class A or Mezzanine Certificate. Resecuritization of any Class
A or
Mezzanine Certificate in a REMIC will be permissible only if the Trust
Administrator hereunder is the trustee in such resecuritization.
The
REMIC
regular interest corresponding to a Class A or Mezzanine Certificate will
be
entitled to receive interest and principal payments at the times and in the
amounts equal to those made on the certificate to which it corresponds, except
that (i) the maximum interest rate of that REMIC regular interest will equal
the
Net WAC Pass-Through Rate computed for this purpose by limiting the Base
Calculation Amount of the Interest Rate Swap Agreement to the aggregate Stated
Principal Balance of the Mortgage Loans and (ii) any Swap Termination Payment
will be treated as being payable solely from Net Monthly Excess Cashflow.
As a
result of the foregoing, the amount of distributions and taxable income on
the
REMIC regular interest corresponding to a Class A or Mezzanine Certificate
may
exceed the actual amount of distributions on the Class A or Mezzanine
Certificate.
| SECTION 4.10. |
Cap
Account.
|
(a) No
later
than the Closing Date, the Trust Administrator shall establish and maintain
with
itself, a separate, segregated trust account titled, “Xxxxx Fargo Bank, N.A. as
Trust Administrator, in trust for the registered holders of MASTR Asset Backed
Securities Trust 2006-NC3, Mortgage Pass-Through Certificates, Series
2006-NC3—Cap Account.” Such account shall be an Eligible Account and amounts
therein shall be held uninvested.
(b) On
each
Distribution Date, prior to any distribution to any Certificate, the Trust
Administrator shall deposit into the Cap Account amounts received by the
Trust
Administrator under the Interest Rate Cap Agreements for distribution in
accordance with Section 4.01(h) above.
(c) It
is the
intention of the parties hereto that, for federal and state income and state
and
local franchise tax purposes, the Cap Account be disregarded as an entity
separate from the Holder of the Class CE Certificates unless and until the
date
when either (a) there is more than one Class CE Certificateholder or (b)
any
Class of Certificates in addition to the Class CE Certificates is
recharacterized as an equity interest in the Cap Account for federal income
tax
purposes, in which case it is the intention of the parties hereto that, for
federal and state income and state and local franchise tax purposes, the
Cap
Account be treated as a grantor trust; provided, that the Trust Administrator
shall not be required to prepare and file grantor trust tax returns in respect
of such grantor trust unless it receives additional reasonable compensation
(not
to exceed $10,000 per year) from the Holders of the Class CE Certificates
for
the preparation of such filings, written notification recognizing the creation
of a grantor trust and comparable documentation evidencing the grantor trust,
if
any. The Cap Account will be an “outside reserve fund” within the meaning of
Treasury Regulation Section 1.860G-2(h). Upon the termination of the Trust
Fund,
or the payment in full of the Class A Certificates and the Mezzanine
Certificates, all amounts remaining on deposit in the Cap Account shall be
released by the Trust Fund and distributed to the Class CE Certificateholders
or
their designees. The Cap Account shall be part of the Trust Fund but not
part of
any Trust REMIC and any payments to the Holders of the Floating Rate
Certificates of Net WAC Rate Carryover Amounts will not be payments with
respect
to a “regular interest” in a REMIC within the meaning of Code Section
860(G)(a)(1).
(d) By
accepting a Class CE Certificate, each Class CE Certificateholder hereby
agrees
to direct the Trust Administrator, and the Trust Administrator is hereby
directed, to deposit into the Cap Account the amounts described above on
each
Distribution Date.
(e) For
federal income tax purposes, the Depositor shall provide the Trust
Administrator, no later than January 1, 2007, the value of the right of the
Class A and Mezzanine Certificates to receive Net WAC Rate Carryover Amounts
from the Net WAC Rate Carryover Reserve Account and the Swap
Account.
| SECTION 4.11. |
Collateral
Accounts.
|
(a) The
Trust
Administrator is hereby directed to perform the obligations of the Custodian
as
defined under the Interest Rate Cap Credit Support Annex (the “Interest Rate Cap
Custodian”). On or before the Closing Date, the Interest Rate Cap Custodian
shall establish an Interest Rate Cap Collateral Account. The Interest Rate
Cap
Collateral Account shall be held in the name of the Interest Rate Cap Custodian
in trust for the benefit of the Certificateholders. The Interest Rate Cap
Collateral Account must be an Eligible Account and shall be titled “Interest
Rate Cap Collateral Account, Xxxxx Fargo Bank, N.A., as Interest Rate Cap
Custodian for Xxxxx Fargo Bank, N.A. as Trust Administrator, in trust for
the
registered Certificateholders of MASTR Asset Backed Securities Trust 2006-NC3,
Mortgage Pass-Through Certificates, Series 2006-NC3.”
The
Interest Rate Cap Custodian shall credit to Interest Rate Cap Collateral
Account
all collateral (whether in the form of cash or securities) posted by the
Interest Rate Cap Provider to secure the obligations of the Interest Rate
Cap
Provider in accordance with the terms of the Interest Rate Cap Agreements.
Except for investment earnings, the Interest Rate Cap Provider shall not
have
any legal, equitable or beneficial interest in the Interest Rate Cap Collateral
Account other than in accordance with this Agreement, the Interest Rate Cap
Agreements and applicable law. The Interest Rate Cap Custodian shall maintain
and apply all collateral and earnings thereon on deposit in the Interest
Rate
Cap Collateral Account in accordance with the Interest Rate Cap Credit Support
Annex and this Agreement.
Cash
collateral posted by the Interest Rate Cap Provider in accordance with the
Interest Rate Cap Credit Support Annex shall be maintained in accordance
with
the requirements of the Interest Rate Cap Credit Support Annex. The Trust
Administrator shall not be liable for any losses incurred on such investment.
All amounts earned on amounts on deposit in the Interest Rate Cap Collateral
Account (whether cash collateral or securities) shall be taxable to the Interest
Rate Cap Provider.
Upon
the
occurrence of an Event of Default, a Termination Event, or an Additional
Termination Event (each as defined in the Interest Rate Cap Agreements) with
respect to the Interest Rate Cap Provider or upon the occurrence or designation
of an Early Termination Date (as defined in the Interest Rate Cap Agreements)
as
a result of any such Event of Default, Termination Event, or Additional
Termination Event with respect to the Interest Rate Cap Provider, and, in
either
such case, unless the Interest Rate Cap Provider has paid in full all of
its
Obligations (as defined in the Interest Rate Cap Credit Support Annex) that
are
then due, then any collateral posted by the Interest Rate Cap Provider in
accordance with the Interest Rate Cap Credit Support Annex shall be applied
to
the payment of any Obligations due to Party B (as defined in the Interest
Rate
Cap Agreements) in accordance with the Interest Rate Cap Credit Support Annex.
Any excess amounts held in such Interest Rate Cap Collateral Account after
payment of all amounts owing to Party B under the Interest Rate Cap Agreement
shall be withdrawn from the Interest Rate Cap Collateral Account and paid
to the
Interest Rate Cap Provider in accordance with the Interest Rate Cap Credit
Support Annex.
(b) The
Trust
Administrator (in its capacity as Supplemental Interest Trust Trustee) is
hereby
directed to perform the obligations of the Custodian as defined under the
Swap
Credit Support Annex (the “Swap Custodian”). On or before the Closing Date, the
Swap Custodian shall establish a Swap Collateral Account. The Swap Collateral
Account shall be held in the name of the Swap Custodian in trust for the
benefit
of the Certificateholders. The Swap Collateral Account must be an Eligible
Account and shall be titled “Swap Collateral Account, Xxxxx Fargo Bank, N.A., as
Swap Custodian for Xxxxx Fargo Bank, N.A. as Trust Administrator, in trust
for
the registered Certificateholders of MASTR Asset Backed Securities Trust
2006-NC3, Mortgage Pass-Through Certificates, Series 2006-NC3.”
The
Swap
Custodian shall credit to Swap Collateral Account all collateral (whether
in the
form of cash or securities) posted by the Swap Provider to secure the
obligations of the Swap Provider in accordance with the terms of the Interest
Rate Swap Agreement. Except for investment earnings, the Swap Provider shall
not
have any legal, equitable or beneficial interest in the Swap Collateral Account
other than in accordance with this Agreement, the Interest Rate Swap Agreement
and applicable law. The Swap Custodian shall maintain and apply all collateral
and earnings thereon on deposit in the Swap Collateral Account in accordance
with the Swap Credit Support Annex and this Agreement.
Cash
collateral posted by the Swap Provider in accordance with the Swap Credit
Support Annex shall be maintained in accordance with the requirements of
the
Swap Credit Support Annex. The Trust Administrator shall not be liable for
any
losses incurred on such investment. All amounts earned on amounts on deposit
in
the Swap Collateral Account (whether cash collateral or securities) shall
be
taxable to the Swap Provider.
Upon
the
occurrence of an Event of Default, a Termination Event, or an Additional
Termination Event (each as defined in the Interest Rate Swap Agreement) with
respect to the Swap Provider or upon the occurrence or designation of an
Early
Termination Date (as defined in the Interest Rate Swap Agreement) as a result
of
any such Event of Default, Termination Event, or Additional Termination Event
with respect to the Interest Rate Swap Provider, and, in either such case,
unless the Swap Provider has paid in full all of its Obligations (as defined
in
the Swap Credit Support Annex) that are then due, then any collateral posted
by
the Swap Provider in accordance with the Swap Credit Support Annex shall
be
applied to the payment of any Obligations due to Party B (as defined in the
Interest Rate Swap Agreement) in accordance with the Swap Credit Support
Annex.
Any excess amounts held in such Swap Collateral Account after payment of
all
amounts owing to Party B under the Interest Rate Swap Agreement shall be
withdrawn from the Swap Collateral Account and paid to the Swap Provider
in
accordance with the Swap Credit Support Annex.
| SECTION 4.12. |
Rights
and Obligations Under the Interest Rate Cap Agreements and the
Interest
Rate Swap Agreement.
|
(a) In
the
event that the Interest Rate Cap Provider fails to perform any of its
obligations under either of the Interest Rate Cap Agreements (including,
without
limitation, its obligation to make any payment or transfer collateral), or
breaches any of its representations and warranties thereunder, or in the
event
that any Event of Default, Termination Event, or Additional Termination Event
(each as defined in the Interest Rate Cap Agreements) occurs with respect
to
either of the Interest Rate Cap Agreements, the Trust Administrator shall,
promptly following actual notice of such failure, breach or event, notify
the
Depositor and send any notices and make any demands, on behalf of the Trust,
required to enforce the rights of the Trust under the related Interest Rate
Cap
Agreement.
In
the
event that the Interest Rate Cap Provider’s obligations are guaranteed by a
third party under a guaranty relating to either of the Interest Rate Cap
Agreements (such guaranty the “Guaranty” and such third party the “Guarantor”),
then to the extent that the Interest Rate Cap Provider fails to make any
payment
by the close of business on the day it is required to make payment under
the
terms of the related Interest Rate Cap Agreement, the Trust Administrator
shall,
promptly following actual knowledge of the Interest Rate Cap Provider’s failure
to pay, demand that the Guarantor make any and all payments then required
to be
made by the Guarantor pursuant to such Guaranty; provided, that the Trust
Administrator shall in no event be liable for any failure or delay in the
performance by the Interest Rate Cap Provider or any Guarantor of its
obligations hereunder or pursuant to the related Interest Rate Cap Agreement
and
the Guaranty, nor for any special, indirect or consequential loss or damage
of
any kind whatsoever (including but not limited to lost profits) in connection
therewith.
Upon
an
early termination of either of the Interest Rate Cap Agreements other than
in
connection with the optional termination of the Trust, the Trust Administrator,
at the direction of the Depositor, will use reasonable efforts to appoint
a
successor interest rate cap provider to enter into a new interest rate cap
agreement on terms substantially similar to the related Interest Rate Cap
Agreement, with a successor interest rate cap provider meeting all applicable
eligibility requirements. If the Trust Administrator receives a termination
payment from the Interest Rate Cap Provider in connection with such early
termination, the Trust Administrator will apply such termination payment
to any
upfront payment required to appoint the successor interest rate cap provider.
If
the Trust Administrator is required to pay a termination payment to the Interest
Rate Cap Provider in connection with such early termination, the Trust
Administrator will apply any upfront payment received from the successor
interest rate cap provider to pay such termination payment.
If
the
Trust Administrator is unable to appoint a successor interest rate cap provider
within 30 days of the early termination, then the Trust Administrator will
deposit any termination payment received from the original Interest Rate
Cap
Provider into a separate, non-interest bearing reserve account and will,
on each
subsequent Distribution Date, withdraw from the amount then remaining on
deposit
in such reserve account an amount equal to the payment, if any, that would
have
been paid to the Trust Administrator by the original Interest Rate Cap Provider
calculated in accordance with the terms of the original Interest Rate Cap
Agreement, and distribute such amount in accordance with the terms of Section
4.01(h).
Upon
an
early termination of either of the Interest Rate Cap Agreements in connection
with the optional termination of the Trust, if the Trust Administrator receives
a termination payment from the Interest Rate Cap Provider, such termination
payment will be distributed in accordance with Section 4.01(h).
(b) In
the
event that the Swap Provider fails to perform any of its obligations under
the
Interest Rate Swap Agreement (including, without limitation, its obligation
to
make any payment or transfer collateral), or breaches any of its representations
and warranties thereunder, or in the event that any Event of Default,
Termination Event, or Additional Termination Event (each as defined in the
Interest Rate Swap Agreement) occurs with respect to the Interest Rate Swap
Agreement, the Trust Administrator (in its capacity as Supplemental Interest
Trust Trustee) shall, promptly following actual notice of such failure, breach
or event, notify the Depositor and send any notices and make any demands,
on
behalf of the Supplemental Interest Trust, required to enforce the rights
of the
Supplemental Interest Trust under the Interest Rate Swap Agreement.
In
the
event that the Swap Provider’s obligations are guaranteed by a third party under
a guaranty relating to the Interest Rate Swap Agreement (such guaranty the
“Guaranty” and such third party the “Guarantor”), then to the extent that the
Swap Provider fails to make any payment by the close of business on the day
it
is required to make payment under the terms of the Interest Rate Swap Agreement,
the Trust Administrator (in its capacity as Supplemental Interest Trust Trustee)
shall, promptly following actual knowledge of the Swap Provider’s failure to
pay, demand that the Guarantor make any and all payments then required to
be
made by the Guarantor pursuant to such Guaranty; provided, that the Trust
Administrator (in its capacity as Supplemental Interest Trust Trustee) shall
in
no event be liable for any failure or delay in the performance by the Swap
Provider or any Guarantor of its obligations hereunder or pursuant to the
Interest Rate Swap Agreement and the Guaranty, nor for any special, indirect
or
consequential loss or damage of any kind whatsoever (including but not limited
to lost profits) in connection therewith.
Upon
an
early termination of the Interest Rate Swap Agreement other than in connection
with the optional termination of the Trust, the Trust Administrator (in its
capacity as Supplemental Interest Trust Trustee) will, at the direction of
the
Depositor, use reasonable efforts to appoint a successor swap provider to
enter
into a new interest rate swap agreement on terms substantially similar to
the
Interest Rate Swap Agreement, with a successor swap provider meeting all
applicable eligibility requirements. If the Trust Administrator (in its capacity
as Supplemental Interest Trust Trustee) receives a termination payment from
the
Swap Provider in connection with such early termination, the Trust Administrator
(in its capacity as Supplemental Interest Trust Trustee) will apply such
termination payment to any upfront payment required to appoint the successor
swap provider. If the Trust Administrator (in its capacity as Supplemental
Interest Trust Trustee) is required to pay a termination payment to the Swap
Provider in connection with such early termination, the Trust Administrator
(in
its capacity as Supplemental Interest Trust Trustee) will apply any upfront
payment received from the successor swap provider to pay such termination
payment.
If
the
Trust Administrator (in its capacity as Supplemental Interest Trust Trustee)
is
unable to appoint a successor swap provider within 30 days of the early
termination, then the Trust Administrator (in its capacity as Supplemental
Interest Trust Trustee) will deposit any termination payment received from
the
original Swap Provider into a separate, non-interest bearing reserve account
and
will, on each subsequent Distribution Date, withdraw from the amount then
remaining on deposit in such reserve account an amount equal to the Net Swap
Payment, if any, that would have been paid to the Trust Administrator (in
its
capacity as Supplemental Interest Trust Trustee) by the original Swap Provider
calculated in accordance with the terms of the original Interest Rate Swap
Agreement, and distribute such amount in accordance with the terms of Section
4.01(g).
Upon
an
early termination of the Interest Rate Swap Agreement in connection with
the
optional termination of the Trust, if the Trust Administrator (in its capacity
as Supplemental Interest Trust Trustee) receives a termination payment from
the
Swap Provider, such termination payment will be distributed in accordance
with
Section 4.01(g).
ARTICLE
V
THE
CERTIFICATES
| SECTION 5.01. |
The
Certificates.
|
(a) The
Certificates in the aggregate will represent the entire beneficial ownership
interest in the Mortgage Loans and all other assets included in REMIC
I.
The
Certificates will be substantially in the forms annexed hereto as Exhibits
A-1
through A-20. The Certificates of each Class will be issuable in registered
form
only, in denominations of authorized Percentage Interests as described in
the
definition thereof. Each Certificate will share ratably in all rights of
the
related Class.
Upon
original issue, the Certificates shall be executed by the Trust Administrator
and authenticated and delivered by the Trust Administrator to or upon the
order
of the Depositor. The Certificates shall be executed by manual or facsimile
signature on behalf of the Trust Administrator by an authorized signatory.
Certificates bearing the manual or facsimile signatures of individuals who
were
at any time the proper officers of the Trust Administrator shall bind the
Trust
Administrator notwithstanding that such individuals or any of them have ceased
to hold such offices prior to the authentication and delivery of such
Certificates or did not hold such offices at the date of such Certificates.
No
Certificate shall be entitled to any benefit under this Agreement or be valid
for any purpose, unless there appears on such Certificate a certificate of
authentication substantially in the form provided herein executed by the
Trust
Administrator by manual signature, and such certificate of authentication
shall
be conclusive evidence, and the only evidence, that such Certificate has
been
duly authenticated and delivered hereunder. All Certificates shall be dated
the
date of their authentication.
(b) The
Class
A Certificates and the Mezzanine Certificates shall initially be issued as
one
or more Certificates held by the Book-Entry Custodian or, if appointed to
hold
such Certificates as provided below, the Depository and registered in the
name
of the Depository or its nominee and, except as provided below, registration
of
such Certificates may not be transferred by the Trust Administrator except
to
another Depository that agrees to hold such Certificates for the respective
Certificate Owners with Ownership Interests therein. The Certificate Owners
shall hold their respective Ownership Interests in and to such Certificates
through the book-entry facilities of the Depository and, except as provided
below, shall not be entitled to definitive, fully registered Certificates
(“Definitive Certificates”) in respect of such Ownership Interests. All
transfers by Certificate Owners of their respective Ownership Interests in
the
Book-Entry Certificates shall be made in accordance with the procedures
established by the Depository Participant or brokerage firm representing
such
Certificate Owner. Each Depository Participant shall only transfer the Ownership
Interests in the Book-Entry Certificates of Certificate Owners it represents
or
of brokerage firms for which it acts as agent in accordance with the
Depository’s normal procedures. The Trust Administrator is hereby initially
appointed as the Book-Entry Custodian and hereby agrees to act as such in
accordance herewith and in accordance with the agreement that it has with
the
Depository authorizing it to act as such. The Book-Entry Custodian may, and,
if
it is no longer qualified to act as such, the Book-Entry Custodian shall,
appoint, by a written instrument delivered to the Depositor, the Master Servicer
and the Trust Administrator, any other transfer agent (including the Depository
or any successor Depository) to act as Book-Entry Custodian under such
conditions as the predecessor Book-Entry Custodian and the Depository or
any
successor Depository may prescribe, provided that the predecessor Book-Entry
Custodian shall not be relieved of any of its duties or responsibilities
by
reason of any such appointment of other than the Depository. If the Trust
Administrator resigns or is removed in accordance with the terms hereof,
the
successor trust administrator or, if it so elects, the Depository shall
immediately succeed to its predecessor’s duties as Book-Entry Custodian. The
Depositor shall have the right to inspect, and to obtain copies of, any
Certificates held as Book-Entry Certificates by the Book-Entry
Custodian.
The
Trustee, the Trust Administrator, the Master Servicer and the Depositor may
for
all purposes (including the making of payments due on the Book-Entry
Certificates) deal with the Depository as the authorized representative of
the
Certificate Owners with respect to the Book-Entry Certificates for the purposes
of exercising the rights of Certificateholders hereunder. The rights of
Certificate Owners with respect to the Book-Entry Certificates shall be limited
to those established by law and agreements between such Certificate Owners
and
the Depository Participants and brokerage firms representing such Certificate
Owners. Multiple requests and directions from, and votes of, the Depository
as
Holder of the Book-Entry Certificates with respect to any particular matter
shall not be deemed inconsistent if they are made with respect to different
Certificate Owners. The Trust Administrator may establish a reasonable record
date in connection with solicitations of consents from or voting by
Certificateholders and shall give notice to the Depository of such record
date.
If
(i)(A)
the Depositor advises the Trust Administrator in writing that the Depository
is
no longer willing or able to properly discharge its responsibilities as
Depository, and (B) the Depositor is unable to locate a qualified successor
or
(ii) after the occurrence of a Servicer Event of Default or a Master Servicer
Event of Default, Certificate Owners representing in the aggregate not less
than
51% of the Ownership Interests of the Book-Entry Certificates advise the
Trust
Administrator through the Depository, in writing, that the continuation of
a
book-entry system through the Depository is no longer in the best interests
of
the Certificate Owners, the Trust Administrator shall notify all Certificate
Owners, through the Depository, of the occurrence of any such event and of
the
availability of Definitive Certificates to Certificate Owners requesting
the
same. Upon surrender to the Trust Administrator of the Book-Entry Certificates
by the Book-Entry Custodian or the Depository, as applicable, accompanied
by
registration instructions from the Depository for registration of transfer,
the
Trust Administrator shall cause the Definitive Certificates to be issued.
Such
Definitive Certificates will be issued in minimum denominations of $25,000,
except that any beneficial ownership that was represented by a Book-Entry
Certificate in an amount less than $25,000 immediately prior to the issuance
of
a Definitive Certificate shall be issued in a minimum denomination equal
to the
amount represented by such Book-Entry Certificate. None of the Depositor,
the
Master Servicer, the Servicer, the Trustee or the Trust Administrator shall
be
liable for any delay in the delivery of such instructions and may conclusively
rely on, and shall be protected in relying on, such instructions. Upon the
issuance of Definitive Certificates all references herein to obligations
imposed
upon or to be performed by the Depository shall be deemed to be imposed upon
and
performed by the Trust Administrator, to the extent applicable with respect
to
such Definitive Certificates, and the Trustee and the Trust Administrator
shall
recognize the Holders of the Definitive Certificates as Certificateholders
hereunder.
| SECTION 5.02. |
Registration
of Transfer and Exchange of
Certificates.
|
(a) The
Trust
Administrator shall cause to be kept at one of the offices or agencies to
be
appointed by the Trust Administrator in accordance with the provisions of
Section 8.11, a Certificate Register for the Certificates in which, subject
to such reasonable regulations as it may prescribe, the Trust Administrator
shall provide for the registration of Certificates and of transfers and
exchanges of Certificates as herein provided.
(b) No
transfer of any Class M-11 Certificate, Class CE Certificate, Class P
Certificate or Residual Certificate (collectively, the “Private Certificates”)
shall be made unless that transfer is made pursuant to an effective registration
statement under the Securities Act of 1933, as amended (the “1933 Act”), and an
effective registration or qualification under applicable state securities
laws,
or is made in a transaction that does not require such registration or
qualification. In the event that such a transfer of a Private Certificate
is to
be made without registration or qualification (other than in connection with
(i)
the initial transfer of any such Certificate by the Depositor to an Affiliate
of
the Depositor or,
in
the case of the Class R-X Certificates, the first transfer by an Affiliate
of
the Depositor or the first transfer by the initial transferee of an Affiliate
of
the Depositor,
(ii)
the transfer of any such Class CE, Class P or Residual Certificate to the
issuer
under the Indenture or the indenture trustee under the Indenture or (iii)
a
transfer of any such Certificate from the issuer under the Indenture or the
indenture trustee under the Indenture to the Depositor or an Affiliate of
the
Depositor), the Trustee and the Certificate Registrar shall each require
receipt
of: (i) if such transfer is purportedly being made in reliance upon Rule
144A
under the 1933 Act, written certifications from the Certificateholder desiring
to effect the transfer and from such Certificateholder’s prospective transferee,
substantially in the forms attached hereto as Exhibit F-1; and (ii) in all
other
cases, an Opinion of Counsel satisfactory to it that such transfer may be
made
without such registration (which Opinion of Counsel shall not be an expense
of
the Depositor, the Trustee, the Trust Administrator, the Master Servicer
in its
capacity as such, the Servicer, any Sub-Servicer or the Trust Fund), together
with copies of the written certification(s) of the Certificateholder desiring
to
effect the transfer and/or such Certificateholder’s prospective transferee upon
which such Opinion of Counsel is based, if any. None of the Depositor, the
Master Servicer, the Servicer, the Trust Administrator, the Certificate
Registrar or the Trustee is obligated to register or qualify the Private
Certificates under the 1933 Act or any other securities laws or to take any
action not otherwise required under this Agreement to permit the transfer
of
such Certificates without registration or qualification.
Any
Certificateholder desiring to effect the transfer of any such Certificate
shall,
and does hereby agree to, indemnify the Trustee, the Trust Administrator,
the
Depositor and the Master Servicer against any liability that may result if
the
transfer is not so exempt or is not made in accordance with such federal
and
state laws.
No
transfer of any Class CE Certificate shall be made unless the transferee
of such
Class CE Certificate provides to the Trust Administrator, the Swap Provider
and
the Interest Rate Cap Provider the appropriate tax certification form (i.e.,
IRS
Form W-9 or IRS Form W-8BEN, W-8IMY, or W-8ECI, as applicable (or
any
successor thereto))
as a
condition to such transfer and agrees to update
such forms (i) upon expiration of any such form, (ii) as required under then
applicable U.S. Treasury Regulations and (iii) promptly upon learning that
any
IRS Form W-9
or
IRS Form W-8BEN, W-8IMY, or W-8ECI, as applicable
(or any
successor thereto), has become obsolete or incorrect. In addition, no transfer
of any Class CE Certificate shall be made if such transfer would cause the
Supplemental Interest Trust or the Cap Account to be beneficially owned by
two
or more persons for federal income tax purposes, or continue to be so treated,
unless (a) each proposed transferee of such Class CE Certificate complies
with
the foregoing conditions, (b) the proposed majority Holder of the Class CE
Certificates (or each Holder, if there is or would be no majority Holder)
(A)
provides, or causes to be provided, on behalf of the Supplemental Interest
Trust
and the Cap Account, if applicable, the appropriate tax certification form
that
would be required from the Supplemental Interest Trust or the Cap Account,
as
applicable, to eliminate any withholding or deduction for taxes from amounts
payable by the Swap Provider or the Interest Rate Cap Provider, pursuant
to the
Interest Rate Swap Agreement or the Interest Rate Cap Agreement, to the Trust
Administrator, the Swap Provider and the Interest Rate Cap Provider on behalf
of
the Supplemental Interest Trust or the Cap Account (i.e., IRS Form W-9 or
IRS
Form W-8BEN, W-8IMY or W-8ECI, as applicable (or any successor form thereto)
as
a condition to such transfer, together with any applicable attachments) and
(B)
agrees to update such form (x) upon expiration of any such form, (y) as required
under then applicable U.S. Treasury regulations and (z) promptly upon learning
that such form has become obsolete or incorrect. If, under applicable U.S.
Treasury regulations, such tax certification form may only be signed by a
trustee acting on behalf of the Supplemental Interest Trust or the Cap Account,
then the Supplemental Interest Trust Trustee or the Trust Administrator,
as
applicable, shall sign such certification form if so requested by a Holder
of
the Class CE Certificates.
Upon
receipt of any such tax certification form from a transferee of any Class
CE
Certificate pursuant to the immediately preceding paragraph, the Trust
Administrator shall provide a copy of any such tax certification form to
the
Swap Provider and the Interest Rate Cap Provider, upon its request, solely
to
the extent the Swap Provider or the Interest Rate Cap Provider has not received
such IRS Form directly from the Holder of the Class CE Certificates. Each
Holder
of a Class CE Certificate by its purchase of such Certificate is deemed to
consent to any such IRS Form being so forwarded. Upon the request of the
Swap
Provider or the Interest Rate Cap Provider, the Trust Administrator shall
be
required to forward any tax certification received by it to the Swap Provider
or
the Interest Rate Cap Provider at the last known address provided to it,
and,
subject to Section 8.01, shall not be liable for the receipt of such tax
certification by the Swap Provider or the Interest Rate Cap Provider, nor
any
action taken or not taken by the Swap Provider or the Interest Rate Cap Provider
with respect to such tax certification. Any purported sales or transfers
of any
Class CE Certificate to a transferee which does not comply with the requirements
of the preceding paragraph shall be deemed null and void under this Agreement.
The Trust Administrator shall have no duty to take any action to correct
any
misstatement or omission in any tax certification provided to it by the Holder
of the Class CE Certificates and forwarded to the Swap Provider or the Interest
Rate Cap Provider.
(c) No
transfer of a Class
CE
Certificate, Class P Certificate or Residual Certificate
or any
interest therein shall be made to any Plan, any Person acting, directly or
indirectly, on behalf of any such Plan or any Person acquiring such Certificates
with “Plan Assets” of a Plan within the meaning of the Department of Labor
regulation promulgated at 29 C. F. R. § 2510.3-101 (“Plan Assets”), as certified
by such transferee in the form of Exhibit G, unless the Trust Administrator
is
provided with an Opinion of Counsel for the benefit of the Trustee, the Trust
Administrator, the Depositor, the Master Servicer and the Servicer and on
which
they may rely which establishes to the satisfaction of the Depositor, the
Trustee, the Trust Administrator, the Servicer and the Master Servicer that
the
purchase of such Certificates is permissible under applicable law, will not
constitute or result in any prohibited transaction under ERISA or
Section 4975 of the Code and will not subject the Depositor, the Master
Servicer, the Servicer, the NIMS Insurer, the Trust Administrator, the Trustee
or the Trust Fund to any obligation or liability (including obligations or
liabilities under ERISA or Section 4975 of the Code) in addition to those
undertaken in this Agreement, which Opinion of Counsel shall not be an expense
of the Depositor, the Master Servicer, the Servicer, the Trust Administrator,
the Trustee or the Trust Fund. Neither an Opinion of Counsel nor any
certification will be required in connection with the (i) the initial transfer
of any Class CE Certificate, Class P Certificate or Residual Certificate
by the
Depositor to an Affiliate of the Depositor, (ii) the transfer of any Class
CE
Certificate, Class P Certificate or Residual Certificate to the issuer under
the
Indenture or the indenture trustee under the Indenture or (iii) a transfer
of
any Class CE Certificate, Class P Certificate or Residual Certificate from
the
issuer under the Indenture or the indenture trustee under the Indenture to
the
Depositor or an Affiliate of the Depositor (in which case, the Transferee
thereof shall have deemed to have represented that it is not a Plan or a
Person
investing Plan Assets) and the Trust Administrator shall be entitled to
conclusively rely upon a representation (which, upon the request of the Trust
Administrator, shall be a written representation) from the Transferor of
the
status of such transferee as an affiliate of the Depositor.
Any
transferee of a Class A Certificate or Mezzanine Certificate acquired prior
to
the termination of the Supplemental Interest Trust shall be deemed to represent
that either (i) it is not a Plan or purchasing with assets of a Plan or (ii)(A)
such Plan is an accredited investor within the meaning of the Exemption and
(B)
such acquisition or holding is eligible for the exemptive relief available
under
Department of Labor Prohibited Transaction Class Exemption (“PTE”) 84-14, XXX
00-00, XXX 00-0, XXX 95-60 or PTE 96-23 or in the case of a Class M-11
Certificate, PTE 95-60.
Subsequent
to the termination of the Supplemental Interest Trust, each beneficial owner
of
a Mezzanine Certificate or any interest therein shall be deemed to have
represented, by virtue of its acquisition or holding of that certificate
or
interest therein, that either (i) it is not a Plan or investing with “Plan
Assets,” (ii) other than in the case of a Class M-11 Certificate, it has
acquired and is holding such Mezzanine Certificate in reliance on the Exemption,
and that it understands that there are certain conditions to the availability
of
the Exemption, including that the Mezzanine Certificate must be rated, at
the
time of purchase not lower than “BBB-” (or its equivalent) by S&P, Xxxxx’x
or Fitch or (iii)(1) it is an insurance company, (2) the source of funds
used to
acquire or hold the certificate or interest therein is an “insurance company
general account,” as such term is defined in PTE 95-60, and (3) the conditions
in Sections I and III of PTE 95-60 have been satisfied.
If
any
Certificate or any interest therein is acquired or held in violation of the
provisions of the preceding three paragraphs, the next preceding permitted
beneficial owner will be treated as the beneficial owner of that Certificate
retroactive to the date of transfer to the purported beneficial owner. Any
purported beneficial owner whose acquisition or holding of any such Certificate
or interest therein was effected in violation of the provisions of the preceding
three paragraphs shall indemnify and hold harmless the Depositor, the Master
Servicer, the Servicer, the NIMS Insurer, the Trust Administrator, the Trustee
and the Trust Fund from and against any and all liabilities, claims, costs
or
expenses incurred by those parties as a result of that acquisition or
holding.
(d) (i)Each
Person who has or who acquires any Ownership Interest in a Residual Certificate
shall be deemed by the acceptance or acquisition of such Ownership Interest
to
have agreed to be bound by the following provisions and to have irrevocably
authorized the Trust Administrator or its designee under clause (iii)(A)
below
to deliver payments to a Person other than such Person and to negotiate the
terms of any mandatory sale under clause (iii)(B) below and to execute all
instruments of Transfer and to do all other things necessary in connection
with
any such sale. The rights of each Person acquiring any Ownership Interest
in a
Residual Certificate are expressly subject to the following
provisions:
(A) Each
Person holding or acquiring any Ownership Interest in a Residual Certificate
shall be a Permitted Transferee and shall promptly notify the Trust
Administrator of any change or impending change in its status as a Permitted
Transferee.
(B) In
connection with any proposed Transfer of any Ownership Interest in a Residual
Certificate, the Trust Administrator shall require delivery to it, and
shall not
register the Transfer of any Residual Certificate until its receipt of,
an
affidavit and agreement (a “Transfer Affidavit and Agreement,” in the form
attached hereto as Exhibit F-2) from the proposed Transferee, in form and
substance satisfactory to the Trust Administrator, representing and warranting,
among other things, that such Transferee is a Permitted Transferee, that
it is
not acquiring its Ownership Interest in the Residual Certificate that is
the
subject of the proposed Transfer as a nominee, trustee or agent for any
Person
that is not a Permitted Transferee, that for so long as it retains its
Ownership
Interest in a Residual Certificate, it will endeavor to remain a Permitted
Transferee, and that it has reviewed the provisions of this Section 5.02(d)
and agrees to be bound by them.
(C) Notwithstanding
the delivery of a Transfer Affidavit and Agreement by a proposed Transferee
under clause (B) above, if a Responsible Officer of the Trust Administrator
who
is assigned to this transaction has actual knowledge that the proposed
Transferee is not a Permitted Transferee, no Transfer of an Ownership Interest
in a Residual Certificate to such proposed Transferee shall be
effected.
(D) Each
Person holding or acquiring any Ownership Interest in a Residual Certificate
shall agree (x) to require a Transfer Affidavit and Agreement in the form
attached hereto as Exhibit F-2 from any other Person to whom such Person
attempts to transfer its Ownership Interest in a Residual Certificate and
(y)
not to transfer its Ownership Interest unless it provides a Transferor
Affidavit
(in the form attached hereto as Exhibit F-2) to the Trust Administrator
stating
that, among other things, it has no actual knowledge that such other Person
is
not a Permitted Transferee.
(E) Each
Person holding or acquiring an Ownership Interest in a Residual Certificate,
by
purchasing an Ownership Interest in such Certificate, agrees to give the
Trust
Administrator written notice that it is a “pass-through interest holder” within
the meaning of temporary Treasury regulation Section 1.67-3T(a)(2)(i)(A)
immediately upon acquiring an Ownership Interest in a Residual Certificate,
if
it is, or is holding an Ownership Interest in a Residual Certificate on
behalf
of, a “pass-through interest holder.”
(ii)
The
Trust Administrator will register the Transfer of any Residual Certificate
only
if it shall have received the Transfer Affidavit and Agreement and all of
such
other documents as shall have been reasonably required by the Trust
Administrator as a condition to such registration. In addition, no Transfer
of a
Residual Certificate shall be made unless the Trust Administrator shall have
received a representation letter from the Transferee of such Certificate
to the
effect that such Transferee is a Permitted Transferee.
(iii)
If
any purported Transferee shall become a Holder of a Residual Certificate
in
violation of the provisions of this Section 5.02(d), then the last
preceding Permitted Transferee shall be restored, to the extent permitted
by
law, to all rights as holder thereof retroactive to the date of registration
of
such Transfer of such Residual Certificate. The Trust Administrator shall
be
under no liability to any Person for any registration of Transfer of a Residual
Certificate that is in fact not permitted by this Section 5.02(d) or for
making any payments due on such Certificate to the holder thereof or for
taking
any other action with respect to such holder under the provisions of this
Agreement.
(A)
If any
purported Transferee shall become a holder of a Residual Certificate in
violation of the restrictions in this Section 5.02(d) and to the extent
that the retroactive restoration of the rights of the holder of such Residual
Certificate as described in clause (iii)(A) above shall be invalid, illegal
or
unenforceable, then the Trust Administrator shall have the right, without
notice
to the holder or any prior holder of such Residual Certificate, to sell such
Residual Certificate to a purchaser selected by the Trust Administrator on
such
terms as the Trust Administrator may choose. Such purported Transferee shall
promptly endorse and deliver each Residual Certificate in accordance with
the
instructions of the Trust Administrator. Such purchaser may be the Trust
Administrator itself or any Affiliate of the Trust Administrator. The proceeds
of such sale, net of the commissions (which may include commissions payable
to
the Trustee or its Affiliates), expenses and taxes due, if any, will be remitted
by the Trust Administrator to such purported Transferee. The terms and
conditions of any sale under this clause (iii)(B) shall be determined in
the
sole discretion of the Trust Administrator, and the Trust Administrator shall
not be liable to any Person having an Ownership Interest in a Residual
Certificate as a result of its exercise of such discretion.
(iv)
The
Trust Administrator shall make available to the Internal Revenue Service
and
those Persons specified by the REMIC Provisions all information necessary
to
compute any tax imposed (A) as a result of the Transfer of an Ownership Interest
in a Residual Certificate to any Person who is a Disqualified Organization,
including the information described in Treasury regulations sections
1.860D-1(b)(5) and 1.860E-2(a)(5) with respect to the “excess inclusions” of
such Residual Certificate and (B) as a result of any regulated investment
company, real estate investment trust, common Trust, partnership, trust,
estate
or organization described in Section 1381 of the Code that holds an
Ownership Interest in a Residual Certificate having as among its record holders
at any time any Person which is a Disqualified Organization. Reasonable
compensation for providing such information may be accepted by the Trust
Administrator.
(v) The
provisions of this Section 5.02(d) set forth prior to this subsection (v)
may be modified, added to or eliminated, provided that there shall have been
delivered to the Trust Administrator and the NIMS Insurer at the expense
of the
party seeking to modify, add to or eliminate any such provision the
following:
(A) written
notification from each Rating Agency to the effect that the modification,
addition to or elimination of such provisions will not cause such Rating
Agency
to downgrade its then-current ratings of any Class of Certificates;
and
(B) an
Opinion of Counsel, in form and substance satisfactory to the Trust
Administrator and the NIMS Insurer, to the effect that such modification
of,
addition to or elimination of such provisions will not cause any Trust REMIC
to
cease to qualify as a REMIC and will not cause any Trust REMIC to be subject
to
an entity-level tax caused by the Transfer of any Residual Certificate to
a
Person that is not a Permitted Transferee or a Person other than the prospective
transferee to be subject to a REMIC-tax caused by the Transfer of a Residual
Certificate to a Person that is not a Permitted Transferee.
The
Trust
Administrator shall forward to the NIMS Insurer a copy of the items delivered
to
it pursuant to (A) and (B) above.
(e) Subject
to the preceding subsections, upon surrender for registration of transfer
of any
Certificate at any office or agency of the Trust Administrator maintained
for
such purpose pursuant to Section 8.11, the Trust Administrator shall
execute, authenticate and deliver, in the name of the designated Transferee
or
Transferees, one or more new Certificates of the same Class of a like aggregate
Percentage Interest.
(f) At
the
option of the Holder thereof, any Certificate may be exchanged for other
Certificates of the same Class with authorized denominations and a like
aggregate Percentage Interest, upon surrender of such Certificate to be
exchanged at any office or agency of the Trust Administrator maintained for
such
purpose pursuant to Section 8.11. Whenever any Certificates are so
surrendered for exchange, the Trust Administrator shall execute, authenticate
and deliver, the Certificates which the Certificateholder making the exchange
is
entitled to receive. Every Certificate presented or surrendered for transfer
or
exchange shall (if so required by the Trust Administrator) be duly endorsed
by,
or be accompanied by a written instrument of transfer in the form satisfactory
to the Trust Administrator duly executed by, the Holder thereof or his attorney
duly authorized in writing. In addition, (i) with respect to each Class R
Certificate, the holder thereof may exchange, in the manner described above,
such Class R Certificate for three separate certificates, each representing
such
holder’s respective Percentage Interest in the Class R-I Interest, the Class
R-II Interest and the Class R-III Interest, respectively, in each case that
was
evidenced by the Class R Certificate being exchanged and (ii) with respect
to
each Class R-X Certificate, the holder thereof may exchange, in the manner
described above, such Class R-X Certificate for three separate certificates,
each representing such holder’s respective Percentage Interest in the Class R-IV
Interest, the Class R-V Interest and the Class R-VI Interest, respectively,
in
each case that was evidenced by the Class R-X Certificate being
exchanged.
(g) No
service charge to the Certificateholders shall be made for any transfer or
exchange of Certificates, but the Trust Administrator may require payment
of a
sum sufficient to cover any tax or governmental charge that may be imposed
in
connection with any transfer or exchange of Certificates.
(h) All
Certificates surrendered for transfer and exchange shall be canceled and
destroyed by the Trust Administrator in accordance with its customary
procedures.
| SECTION 5.03. |
Mutilated,
Destroyed, Lost or Stolen
Certificates.
|
If
(i)
any mutilated Certificate is surrendered to the Trust Administrator, or the
Trust Administrator receives evidence to its satisfaction of the destruction,
loss or theft of any Certificate, and (ii) there is delivered to the Trust
Administrator, the Trustee and the NIMS Insurer such security or indemnity
as
may be required by it to save it harmless, then, in the absence of actual
knowledge by the Trust Administrator that such Certificate has been acquired
by
a bona fide purchaser or the Trust Administrator shall execute, authenticate
and
deliver, in exchange for or in lieu of any such mutilated, destroyed, lost
or
stolen Certificate, a new Certificate of the same Class and of like denomination
and Percentage Interest. Upon the issuance of any new Certificate under this
Section, the Trust Administrator may require the payment of a sum sufficient
to
cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of the Trust
Administrator) connected therewith. Any replacement Certificate issued pursuant
to this Section shall constitute complete and indefeasible evidence of
ownership in the applicable REMIC created hereunder, as if originally issued,
whether or not the lost, stolen or destroyed Certificate shall be found at
any
time.
| SECTION 5.04. |
Persons
Deemed Owners.
|
The
Depositor, the Servicer, the Master Servicer, the NIMS Insurer, the Trust
Administrator, the Trustee and any agent of any of them may treat the Person
in
whose name any Certificate is registered as the owner of such Certificate
for
the purpose of receiving distributions pursuant to Section 4.01 and for all
other purposes whatsoever, and none of the Depositor, the Master Servicer,
the
Servicer, the NIMS Insurer, the Trust Administrator, the Trustee or any agent
of
any of them shall be affected by notice to the contrary.
| SECTION 5.05. |
Certain
Available Information.
|
On
or
prior to the date of the first sale of any Private Certificate to an Independent
third party, the Depositor shall provide to the Trust Administrator ten copies
of any private placement memorandum or other disclosure document used by
the
Depositor in connection with the offer and sale of such Certificates. In
addition, if any such private placement memorandum or disclosure document
is
revised, amended or supplemented at any time following the delivery thereof
to
the Trust Administrator, the Depositor promptly shall inform the Trust
Administrator of such event and shall deliver to the Trust Administrator
ten
copies of the private placement memorandum or disclosure document, as revised,
amended or supplemented. The Trust Administrator shall maintain at its Corporate
Trust Office and shall make available free of charge during normal business
hours for review by any Holder of a Certificate or any Person identified
to the
Trust Administrator as a prospective transferee of a Certificate, originals
or
copies of the following items: (i) in the case of a Holder or prospective
transferee of a Private Certificate, the related private placement memorandum
or
other disclosure document relating to such Class of Certificates, in the
form
most recently provided to the Trust Administrator; and (ii) in all cases,
(A)
this Agreement and any amendments hereof entered into pursuant to
Section 11.01, (B) all Monthly Statements required to be delivered to
Certificateholders of the relevant Class pursuant to Section 4.02 since the
Closing Date, and all other notices, reports, statements and written
communications delivered to the Certificateholders of the relevant Class
pursuant to this Agreement since the Closing Date, (C) all certifications
delivered by a Responsible Officer of the Trust Administrator since the Closing
Date, (D) any and all Officers’ Certificates delivered to the Trust
Administrator by the Servicer since the Closing Date to evidence the Servicer’s
determination that any Advance or Servicing Advance was, or if made, would
be a
Nonrecoverable Advance or Nonrecoverable Servicing Advance, respectively,
and
(E) any and all Officers’ Certificates delivered to the Trust Administrator by
the Servicer since the Closing Date pursuant to Section 4.04(a). Copies and
mailing of any and all of the foregoing items will be available from the
Trust
Administrator upon request at the expense of the Person requesting the
same.
ARTICLE
VI
THE
DEPOSITOR, THE SERVICER AND THE MASTER SERVICER
| SECTION 6.01. |
Liability
of the Depositor, the Servicer and the Master
Servicer.
|
The
Depositor, the Servicer and the Master Servicer each shall be liable in
accordance herewith only to the extent of the obligations specifically imposed
by this Agreement upon them in their respective capacities as Depositor,
Servicer and Master Servicer and undertaken hereunder by the Depositor, the
Servicer and the Master Servicer herein.
| SECTION 6.02. |
Merger
or Consolidation of the Depositor, the Servicer or the Master
Servicer.
|
Subject
to the following paragraph, the Depositor will keep in full effect its
existence, rights and franchises as a corporation under the laws of the
jurisdiction of its incorporation. Subject to the following paragraph, the
Servicer will keep in full effect its existence, rights and franchises as
a
limited liability company under the laws of the State of Delaware. Subject
to
the following paragraph, the Master Servicer will keep in full effect its
existence, rights and franchises as a national banking association and shall
ensure that it (or an Affiliate) maintains its qualification as an approved
conventional seller/servicer for Xxxxxx Xxx or Xxxxxxx Mac in good standing.
The
Depositor, the Servicer and the Master Servicer each will obtain and preserve
its qualification to do business as a foreign corporation in each jurisdiction
in which such qualification is or shall be necessary to protect the validity
and
enforceability of this Agreement, the Certificates or any of the Mortgage
Loans
and to perform its respective duties under this Agreement.
The
Depositor, the Servicer or the Master Servicer may be merged or consolidated
with or into any Person, or transfer all or substantially all of its assets
or
its servicing platform in the case of the Servicer to any Person, in which
case
any Person resulting from any merger or consolidation to which the Depositor,
the Servicer or the Master Servicer shall be a party, or any Person succeeding
to the business of the Depositor, the Servicer or the Master Servicer, shall
be
the successor of the Depositor, the Servicer or the Master Servicer, as the
case
may be, hereunder, without the execution or filing of any paper or any further
act on the part of any of the parties hereto, anything herein to the contrary
notwithstanding; provided, however, that the successor or surviving Person
to
the Servicer shall be qualified to service mortgage loans on behalf of Xxxxxx
Mae or Xxxxxxx Mac; and provided further that the Rating Agencies’ ratings of
the Class A Certificates and the Mezzanine Certificates in effect immediately
prior to such merger or consolidation will not be qualified, reduced or
withdrawn as a result thereof (as evidenced by a letter to such effect from
the
Rating Agencies).
| SECTION 6.03. |
Limitation
on Liability of the Depositor, the Servicer, the Master Servicer
and
Others.
|
(a) The
Servicer (but not the Trustee if it is required to succeed a Servicer after
becoming Master Servicer hereunder) indemnifies and holds the NIMS Insurer,
the
Trustee, the Trust Administrator, the Master Servicer and the Depositor harmless
against any and all claims, losses, penalties, fines, forfeitures, reasonable
legal fees and related costs, judgments, and any other costs, fees and expenses
that the NIMS Insurer, the Trustee, the Trust Administrator, the Master Servicer
and the Depositor may sustain in any way related to the failure of the Servicer
to perform its duties and service the Mortgage Loans in compliance with the
terms of this Agreement.
The
Servicer shall immediately notify the NIMS Insurer, the Trustee, the Trust
Administrator, the Master Servicer and the Depositor if a claim is made that
may
result in such claims, losses, penalties, fines, forfeitures, legal fees
or
related costs, judgments, or any other costs, fees and expenses, and the
Servicer shall assume (with the consent of the Trust Administrator, the
Depositor, the Master Servicer and the Trustee, as applicable) the defense
of
any such claim and pay all expenses in connection therewith, including
reasonable counsel fees, and promptly pay, discharge and satisfy any judgment
or
decree which may be entered against the NIMS Insurer, the Trustee, the Trust
Administrator, the Master Servicer and/or the Depositor in respect of such
claim. The provisions of this Section 6.03 shall survive the termination
of this
Agreement and the payment of the outstanding Certificates.
(b) The
Master Servicer agrees to indemnify the Indemnified Persons for, and to hold
them harmless against, any loss, liability or expense (including reasonable
legal fees and disbursements of counsel) incurred on their part that may
be
sustained in connection with, arising out of, or relating to, any claim or
legal
action (including any pending or threatened claim or legal action) relating
to
this Agreement or the Certificates or the powers of attorney delivered by
the
Trustee hereunder (i) related to the Master Servicer’s failure to perform its
duties in compliance with this Agreement (except as any such loss, liability
or
expense shall be otherwise reimbursable pursuant to this Agreement) or (ii)
incurred by reason of the Master Servicer’s willful misfeasance, bad faith or
gross negligence in the performance of duties hereunder or by reason of reckless
disregard of obligations and duties hereunder, provided, in each case, that
with
respect to any such claim or legal action (or pending or threatened claim
or
legal action), the Trustee shall have given the Master Servicer and the
Depositor written notice thereof promptly after the Trustee shall have with
respect to such claim or legal action knowledge thereof. The Master Servicer’s
failure to receive any such notice shall not affect any Indemnified Person’s
right to indemnification under this Section 6.03(b), except to the extent
the Master Servicer is materially prejudiced by such failure to give notice.
This indemnity shall survive the resignation or removal of the Trustee, Master
Servicer or the Trust Administrator and the termination of this Agreement.
For
purposes of this Section 6.03(b), “Indemnified Persons” means each of the
Trustee, the Servicer, the NIMS Insurer and their respective officers,
directors, agents and employees and, with respect to the Trustee, any separate
co-trustee and its officers, directors, agents and employees.
(c) None
of
the Depositor, the NIMS Insurer, the Master Servicer, the Trust Administrator,
the Servicer or any of the directors, officers, employees or agents of the
Depositor, the Master Servicer, the Trust Administrator or the Servicer shall
be
under any liability to the Trust Fund or the Certificateholders for any action
taken or for refraining from the taking of any action in good faith pursuant
to
this Agreement, or for errors in judgment; provided, however, that this
provision shall not protect the Depositor, the Master Servicer, the Trust
Administrator, the Servicer or any such person against any breach of warranties,
representations or covenants made herein, or against any specific liability
imposed on the Master Servicer or Servicer pursuant hereto, or against any
liability which would otherwise be imposed by reason of willful misfeasance,
bad
faith or gross negligence in the performance of duties or by reason of reckless
disregard of obligations and duties hereunder, in the case of the Master
Servicer, a breach of the servicing standard set forth in Section 3A.01 or
in
the case of the Servicer, a breach of the servicing standard set forth in
Section 3.01. The Depositor, the NIMS Insurer, the Master Servicer, the Trust
Administrator and the Servicer and any director, officer, employee or agent
of
the Depositor, the NIMS Insurer, the
Master Servicer, the Trust Administrator or
the
Servicer may rely in good faith on any document of any kind which is,
prima
facie,
is
properly executed and submitted by any Person respecting any matters arising
hereunder. The Depositor, the NIMS Insurer, the Master Servicer, the Trust
Administrator, the Servicer and any director, officer, employee or agent
of the
Depositor, the NIMS Insurer, the Master Servicer, the Trust Administrator
or the
Servicer shall be indemnified and held harmless by the Trust Fund against
any
loss, liability or expense incurred in connection with (i) any legal action
relating to this Agreement or the Certificates, other than any loss, liability
or expense relating to any specific Mortgage Loan or Mortgage Loans (except
as
any such loss, liability or expense shall be otherwise reimbursable pursuant
to
this Agreement) or any loss, liability or expense incurred by reason of willful
misfeasance, bad faith or negligence in the performance of duties hereunder
or
by reason of its reckless disregard of obligations and duties hereunder or
(ii)
any breach of a representation or warranty by the Originator or any other
party
regarding the Mortgage Loans. None of the Depositor, the NIMS Insurer, the
Master Servicer, the Trust Administrator or the Servicer shall be under any
obligation to appear in, prosecute or defend any legal action unless such
action
is related to its respective duties under this Agreement and, in its opinion,
does not involve it in any expense or liability; provided, however, that
each of
the Depositor, the NIMS Insurer, the Master Servicer, the Trust Administrator
and the Servicer may in its discretion undertake any such action which it
may
deem necessary or desirable with respect to this Agreement and the rights
and
duties of the parties hereto and the interests of the Certificateholders
hereunder. In such event, the legal expenses and costs of such action and
any
liability resulting therefrom (except any loss, liability or expense incurred
by
reason of willful misfeasance, bad faith or gross negligence in the performance
of duties hereunder or by reason of reckless disregard of obligations and
duties
hereunder) shall be expenses, costs and liabilities of the Trust Fund, and
the
Depositor, the NIMS Insurer, the Master Servicer, the Trust Administrator
and
the Servicer shall be entitled to be reimbursed therefor from the Collection
Account or Distribution Account, as applicable, as and to the extent provided
in
Section 3.11 or Section 3A.12, any such right of reimbursement being prior
to
the rights of the Certificateholders to receive any amount in the Collection
Account or Distribution Account. The Master Servicer’s, the Trust
Administrator’s or Servicer’s right to indemnity or reimbursement pursuant to
this Section shall survive any termination of this Agreement, any resignation
or
termination of the Master Servicer, the Trust Administrator or such Servicer
pursuant to Section 6.04 or 7.01 with respect to any losses, expenses, costs
or
liabilities arising prior to such resignation or termination (or arising
from
events that occurred prior to such resignation or termination).
| SECTION 6.04. |
Limitation
on Resignation of the Servicer; Assignment of Master
Servicing.
|
(a) Except
as
otherwise provided herein, the Servicer shall not resign from the obligations
and duties hereby imposed on it except upon determination that its duties
hereunder are no longer permissible under applicable law. Any such determination
pursuant to the preceding sentence permitting the resignation of the Servicer
shall be evidenced by an Opinion of Counsel to such effect obtained at the
expense of the Servicer and delivered to the Trustee, the Trust Administrator,
the Master Servicer and the NIMS Insurer. No resignation of the Servicer
shall
become effective until the Master Servicer or (if the Master Servicer is
the
Servicer) the Trustee or a successor servicer acceptable to the NIMS Insurer
shall have assumed the Servicer’s responsibilities, duties, liabilities (other
than those liabilities arising prior to the appointment of such successor)
and
obligations under this Agreement. Any such resignation shall not relieve
the
Servicer of responsibility for any of the obligations specified in Sections
7.01
and 7.02 as obligations that survive the resignation or termination of the
Servicer.
Except
as
expressly provided herein, the Servicer shall not assign or transfer any
of its
rights, benefits or privileges hereunder to any other Person, or delegate
to or
subcontract with, or authorize or appoint any other Person to perform any
of the
duties, covenants or obligations to be performed by the Servicer hereunder.
The
foregoing prohibition on assignment shall not prohibit the Servicer from
designating a Sub-Servicer as payee of any indemnification amount payable
to the
Servicer hereunder; provided, however, that as provided in Section 3.06 hereof,
no Sub-Servicer shall be a third-party beneficiary hereunder and the parties
hereto shall not be required to recognize any Sub-Servicer as an indemnitee
under this Agreement. If, pursuant to any provision hereof, the duties of
the
Servicer are transferred to a successor servicer, the entire amount of the
Servicing Fee and other compensation payable to the Servicer pursuant hereto
shall thereafter be payable to such successor servicer.
(b) The
Master Servicer may sell, assign or delegate its rights, duties and obligations
as Master Servicer under this Agreement in their entirety; provided, however,
that: (i) the purchaser or transferee accepting such sale, assignment and
delegation (a) shall be a Person qualified to service mortgage loans for
Xxxxxx
Xxx or Xxxxxxx Mac; (b) shall have a net worth of not less than $50,000,000
(unless otherwise approved by each Rating Agency pursuant to clause (ii)
below);
(c) shall be reasonably satisfactory to the NIMS Insurer and the Trustee
(as
evidenced in a writing signed by each of the NIMS Insurer and the Trustee);
and
(d) shall execute and deliver to the Trustee and the NIMS Insurer an agreement,
in form and substance reasonably satisfactory to the Trustee and the NIMS
Insurer, which contains an assumption by such Person of the due and punctual
performance and observance of each covenant and condition to be performed
or
observed by it as master servicer under this Agreement from and after the
effective date of such assumption agreement; (ii) each Rating Agency shall
be
given prior written notice of the identity of the proposed successor to the
Master Servicer and shall confirm in writing to the Master Servicer, the
NIMS
Insurer and the Trustee that any such sale, assignment or delegation would
not
result in a withdrawal or a downgrading of the rating on any Class of
Certificates in effect immediately prior to such sale, assignment or delegation;
and (iii) the Master Servicer shall deliver to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that all conditions
precedent to such action under this Agreement have been fulfilled and such
action is permitted by and complies with the terms of this Agreement. No
such
sale, assignment or delegation shall affect any liability of the Master Servicer
arising prior to the effective date thereof.
| SECTION 6.05. |
Successor
Master Servicer.
|
In
connection with the appointment of any successor Master Servicer or the
assumption of the duties of the Master Servicer, the Depositor, the NIMS
Insurer, the Trust Administrator or the Trustee may make such arrangements
for
the compensation of such successor Master Servicer out of payments on the
Mortgage Loans as the Depositor, the NIMS Insurer or the Trustee and such
successor Master Servicer shall agree. If the successor Master Servicer does
not
agree that such market value is a fair price, such successor Master Servicer
shall obtain two quotations of market value from third parties actively engaged
in the master servicing of single-family mortgage loans. Notwithstanding
the
foregoing, the compensation payable to a successor Master Servicer may not
exceed the compensation which the Master Servicer would have been entitled
to
retain if the Master Servicer had continued to act as Master Servicer
hereunder.
| SECTION 6.06. |
Rights
of the Depositor in Respect of the
Servicer.
|
The
Servicer shall afford (and any Sub-Servicing Agreement shall provide that
each
Sub-Servicer shall afford) the Depositor, the NIMS Insurer, the Master Servicer,
the Trust Administrator and the Trustee, upon reasonable notice, during normal
business hours, reasonable access to all records maintained by the Servicer
(and
any such Sub-Servicer) in respect of the Servicer’s rights and obligations
hereunder and access to officers of the Servicer (and those of any such
Sub-Servicer) responsible for such obligations. Upon request, the Servicer
shall
furnish to the Depositor, the NIMS Insurer, the Master Servicer, the Trust
Administrator and the Trustee its (and any such Sub-Servicer’s) most recent
financial statements and such other information relating to the Servicer’s
capacity to perform its obligations under this Agreement as it possesses
(and
that any such Sub-Servicer possesses). To the extent such information is
not
otherwise available to the public, the Depositor, the NIMS Insurer, the Master
Servicer, the Trust Administrator and the Trustee shall not disseminate any
information obtained pursuant to the preceding two sentences without the
Servicer’s written consent, except as required pursuant to this Agreement or to
the extent that it is appropriate to do so (i) in working with legal counsel,
auditors, taxing authorities or other governmental agencies or (ii) pursuant
to
any law, rule, regulation, order, judgment, writ, injunction or decree of
any
court or governmental authority having jurisdiction over the Depositor and
the
Trustee or the Trust Fund, and in any case, the Depositor, the NIMS Insurer,
the
Master Servicer, the Trust Administrator or the Trustee, as the case may
be,
shall use its best efforts to assure the confidentiality of any such
disseminated non-public information.
The
Depositor may, but is not obligated to, enforce the obligations of the Servicer
under this Agreement and may, but is not obligated to, perform, or cause
a
designee to perform, any defaulted obligation of the Servicer under this
Agreement or exercise the rights of the Servicer under this Agreement; provided
that the Servicer shall not be relieved of any of its obligations under this
Agreement by virtue of such performance by the Depositor or its designee.
The
Depositor shall not have any responsibility or liability for any action or
failure to act by the Servicer and is not obligated to supervise the performance
of the Servicer under this Agreement or otherwise.
| SECTION 6.07. |
[Reserved].
|
| SECTION 6.08. |
Duties
of the Credit Risk Manager.
|
The
Certificateholders, by their purchase and acceptance of the Certificates,
appoint Xxxxxxx Fixed Income Services Inc. as Credit Risk Manager. For and
on
behalf of the Depositor, the Credit Risk Manager will provide reports and
recommendations concerning certain delinquent and defaulted Mortgage Loans,
and
as to the collection of any Prepayment Charges with respect to the Mortgage
Loans. Such reports and recommendations will be based upon information provided
pursuant to the Credit Risk Management Agreement to the Credit Risk Manager
by
the Servicer. The Credit Risk Manager shall look solely to the Servicer and/or
Master Servicer, as applicable, for all information and data (including loss
and
delinquency information and data) and loan level information and data relating
to the servicing of the Mortgage Loans and the Trustee shall not have any
obligation to provide any such information to the Credit Risk Manager and
shall
not otherwise have any responsibility under the Credit Risk Management
Agreement. Upon any termination of the Credit Risk Manager or the appointment
of
a successor Credit Risk Manager, the Depositor shall give written notice
thereof
to the Servicer, the Trustee, the Master Servicer, the Trust Administrator,
the
NIMS Insurer and each Rating Agency. Notwithstanding the foregoing, the
termination of the Credit Risk Manager pursuant to this Section shall not
become
effective until the appointment of a successor Credit Risk Manager.
With
respect to each Distribution Date, on or about the 15th
calendar
day of each month following the month in which such Distribution Date occurs,
the Credit Risk Manager shall have prepared and shall make available to the
Depositor, the Trustee, the Trust Administrator, the Servicer, the Master
Servicer, the Swap Provider and the Cap Provider, the following reports (each
such report to be made in a format compatible with XXXXX filing
requirements):
(i) Watchlist
Report: A listing of individual Mortgage Loans that are of concern to the
Credit
Risk Manager. Each Watchlist Report shall contain a listing of Mortgage Loans
in
any delinquency status, including current and paid-off loans, and may contain
the comments of the Credit Risk Manager in its sole discretion. The Watchlist
Report shall be presented in substantially the same format attached hereto
as
Exhibit S-1;
(ii) Loss
Severity Report: A compilation and summary of all losses, indicating the
loan
loss severity for each Mortgage Pool. Each Loss Severity Report shall include
detail of all losses reported by the Servicer as Realized Losses, except
those
for which the Servicer has not provided detail adequate for reporting purposes.
The Loss Severity Report shall be presented in substantially the same format
attached hereto as Exhibit S-2;
(iii) Prepayment
Report: A summary of Prepayment Charges assessed or waived by the Servicer.
The
Prepayment Report shall be presented in substantially the same format attached
hereto as Exhibit S-3; and
(iv) Analytics
Report: Analytics Reports shall include statistical and/or graphical portrayals
of (a) the delinquency trend, over time, of the Mortgage Loans; (b) the constant
prepayment rate “CPR” experience of the Mortgage Loans; and (c) the Standard
Default Assumption experience of the Mortgage Loans. The Analytics Report
shall
be presented in substantially the same format attached hereto as Exhibit
S-4.
Upon
request of the Depositor, the Credit
Risk Manager shall make such reports and any additional information reasonably
requested by the Depositor available each month to Certificateholders, the
Trustee, the Trust Administrator, the Master Servicer and the Rating Agencies
via the Credit Risk Manager’s internet website. The Credit Risk Manager’s
internet website shall initially be located at xxxxx://xxxxxxx.xxxxxxx.xxx.
The
user name for access to the website shall be the Certificateholder’s e-mail
address and the password shall be “MABS 2006-NC3”. The Master Servicer shall not
have any obligation to review such reports or otherwise monitor or supervise
the
activities of the Credit Risk Manager.
| SECTION 6.09. |
Limitation
Upon Liability of the Credit Risk
Manager.
|
Neither
the Credit Risk Manager, nor any of its directors, officers, employees, or
agents shall be under any liability to the Trustee, the Certificateholders,
the
Trust Administrator, the Servicer, the Master Servicer or the Depositor for
any
action taken or for refraining from the taking of any action made in good
faith
pursuant to this Agreement, in reliance upon information provided by the
Servicer or the Master Servicer under the related Credit Risk Management
Agreement, or for errors in judgment; provided, however, that this provision
shall not protect the Credit Risk Manager or any such person against liability
that would otherwise be imposed by reason of willful malfeasance or bad faith
in
its performance of its duties. The Credit Risk Manager and any director,
officer, employee, or agent of the Credit Risk Manager may rely in good faith
on
any document of any kind prima
facie
properly
executed and submitted by any Person respecting any matters arising hereunder,
and may rely in good faith upon the accuracy of information furnished by
the
Servicer or the Master Servicer pursuant to the related Credit Risk Management
Agreement in the performance of its duties thereunder and
hereunder.
| SECTION 6.10. |
Removal
of the Credit Risk Manager.
|
The
Credit Risk Manager may be removed as Credit Risk Manager by Certificateholders
holding not less than 66 2/3% of the Voting Rights in the Trust Fund, in
the
exercise of its or their sole discretion. The Certificateholders shall provide
written notice of the Credit Risk Manager’s removal to the Trust Administrator.
Upon receipt of such notice, the Trust Administrator shall provide written
notice to the Credit Risk Manager of its removal, which shall be effective
upon
receipt of such notice by the Credit Risk Manager.
ARTICLE
VII
DEFAULT
| SECTION 7.01. |
Servicer
Events of Default and Master Servicer Events of
Termination.
|
(a) “Servicer
Event of Default,” wherever used herein, means any one of the following
events:
(i) any
failure by the Servicer to remit to the Trust Administrator for distribution
to
the Certificateholders any payment (other than an Advance required to be
made
from its own funds on any Servicer Remittance Date pursuant to Section 4.03)
required to be made under the terms of the Certificates and this Agreement
which
continues unremedied for a period of one Business Day after the date upon
which
written notice of such failure, requiring the same to be remedied, shall
have
been given to the Servicer by the Depositor or the Trust Administrator (in
which
case notice shall be provided by telecopy), or to the Servicer, the Depositor
and the Trust Administrator by the NIMS Insurer or the Holders of Certificates
entitled to at least 25% of the Voting Rights; or
(ii) other
than with respect to clause (vi) below, any failure on the part of the Servicer
duly to observe or perform in any material respect any other of the covenants
or
agreements on the part of the Servicer contained in this Agreement, or the
breach by the Servicer of any representation and warranty contained in Section
2.05, which continues unremedied for a period of 30 days (or if such failure
or
breach cannot be remedied within 30 days, then such remedy shall have been
commenced within 30 days and diligently pursued thereafter; provided, however,
that in no event shall such failure or breach be allowed to exist for a period
of greater than 90 days) after the earlier of (i) the date on which written
notice of such failure, requiring the same to be remedied, shall have been
given
to the Servicer by the Depositor or the Trust
Administrator or
to the
Servicer, the Depositor and the Trust Administrator by the NIMS Insurer or
the
Holders of Certificates entitled to at least 25% of the Voting Rights and
(ii)
actual knowledge of such failure by a Servicing Officer of the Servicer;
or
(iii) a
decree
or order of a court or agency or supervisory authority having jurisdiction
in
the premises in an involuntary case under any present or future federal or
state
bankruptcy, insolvency or similar law or the appointment of a conservator
or
receiver or liquidator in any insolvency, readjustment of debt, marshalling
of
assets and liabilities or similar proceeding, or for the winding-up or
liquidation of its affairs, shall have been entered against the Servicer
and
such decree or order shall have remained in force undischarged or unstayed
for a
period of 90 days; or
(iv) the
Servicer shall consent to the appointment of a conservator or receiver or
liquidator in any insolvency, readjustment of debt, marshalling of assets
and
liabilities or similar proceedings of or relating to it or of or relating
to all
or substantially all of its property; or
(v) the
Servicer shall admit in writing its inability to pay its debts generally
as they
become due, file a petition to take advantage of any applicable insolvency
or
reorganization statute, make an assignment for the benefit of its creditors,
or
voluntarily suspend payment of its obligations; or
(vi) any
failure by the Servicer to timely comply with its obligations pursuant to
Section 3.20, Section 3.21 or Section 4.06 hereof (in each case, taking into
account any applicable cure periods);
(vii) any
failure of the Servicer to make any Advance on any Servicer Remittance Date
required to be made from its own funds pursuant to Section 4.03 which continues
unremedied until 3:00 p.m. New York time on the Business Day following the
Servicer Remittance Date.
If
(a) a
Servicer Event of Default described in clauses (i) through (vi) of this Section
shall occur, then, and in each and every such case, so long as such Servicer
Event of Default shall not have been remedied, the Depositor, the Master
Servicer, the Trustee or the Trust Administrator may, and at the written
direction of the Holders of Certificates entitled to at least 51% of Voting
Rights, or at the direction of the NIMS Insurer, the Trustee shall or (b)
a
Servicer Event of Default described in clause (vii) of this Section shall
occur
and the Trustee or the Master Servicer has, at the direction of the Depositor,
determined to terminate the Servicer, then the Trustee, shall, by notice
in
writing to the Servicer, the Master Servicer and the Depositor, terminate
all of
the rights and obligations of the Servicer in its capacity as Servicer under
this Agreement, to the extent permitted by law, and in and to the Mortgage
Loans
and the proceeds thereof. If a Servicer Event of Default described in clause
(vii) hereof shall occur, the Trustee shall, by notice in writing to the
Servicer, the Depositor, the Master Servicer and the NIMS Insurer, terminate
all
of the rights and obligations of the Servicer in its capacity as Servicer
under
this Agreement and in and to the Mortgage Loans and the proceeds thereof.
Subject to Section 7.02 hereof, on or after the receipt by the Servicer of
such
written notice, all authority and power of the Servicer under this Agreement,
whether with respect to the Certificates (other than as a Holder of any
Certificate) or the Mortgage Loans or otherwise, shall pass to and be vested
in
the Master Servicer or (if the Master Servicer is the Servicer) the Trustee
pursuant to and under this Section, and, without limitation, the Master Servicer
or the Trustee, as applicable, is hereby authorized and empowered, as
attorney-in-fact or otherwise, to execute and deliver, on behalf of and at
the
expense of the Servicer, any and all documents and other instruments and
to do
or accomplish all other acts or things necessary or appropriate to effect
the
purposes of such notice of termination, whether to complete the transfer
and
endorsement or assignment of the Mortgage Loans and related documents, or
otherwise. The Servicer agrees to promptly (and in any event no later than
ten
Business Days subsequent to such notice) provide the Master Servicer or the
Trustee, as applicable, with all documents and records requested by it to
enable
it to assume the Servicer’s functions under this Agreement, and to cooperate
with the Master Servicer or the Trustee, as applicable, in effecting the
termination of the Servicer’s responsibilities and rights under this Agreement,
including, without limitation, the transfer within one Business Day to the
Master Servicer or the Trustee, as applicable, for administration by it of
all
cash amounts which at the time shall be or should have been credited by the
Servicer to the Collection Account held by or on behalf of the Servicer,
the
Distribution Account or any REO Account or Servicing Account held by or on
behalf of the Servicer or thereafter be received with respect to the Mortgage
Loans or any REO Property serviced by the Servicer; provided, however, that
the
Servicer shall continue to be entitled to receive all amounts accrued or
owing
to it under this Agreement on or prior to the date of such termination, whether
in respect of Advances or otherwise, and shall continue to be entitled to
the
benefits of Section 6.03, notwithstanding any such termination, with respect
to
events occurring prior to such termination.
(b) “Master
Servicer Event of Default,” wherever used herein, means any one of the following
events:
(i) the
Master Servicer fails to cause to be deposited in the Distribution Account
any
amount so required to be deposited pursuant to this Agreement (other than
an
Advance), and such failure continues unremedied for a period of one Business
Day
after the date upon which written notice of such failure, requiring the same
to
be remedied, shall have been given to the Master Servicer; or
(ii) the
Master Servicer fails to observe or perform in any material respect any other
material covenants and agreements set forth in this Agreement to be performed
by
it, which covenants and agreements materially affect the rights of
Certificateholders, and such failure continues unremedied for a period of
60
days after the date on which written notice of such failure, properly requiring
the same to be remedied, shall have been given to the Master Servicer by
the
Trustee or the NIMS Insurer or to the Master Servicer and the Trustee by
the
Holders of Certificates evidencing not less than 25% of the Voting Rights;
or
(iii) there
is
entered against the Master Servicer a decree or order by a court or agency
or
supervisory authority having jurisdiction in the premises for the appointment
of
a conservator, receiver or liquidator in any insolvency, readjustment of
debt,
marshaling of assets and liabilities or similar proceedings, or for the winding
up or liquidation of its affairs, and the continuance of any such decree
or
order is unstayed and in effect for a period of 60 consecutive days, or an
involuntary case is commenced against the Master Servicer under any applicable
insolvency or reorganization statute and the petition is not dismissed within
60
days after the commencement of the case; or
(iv) the
Master Servicer consents to the appointment of a conservator or receiver
or
liquidator in any insolvency, readjustment of debt, marshaling of assets
and
liabilities or similar proceedings of or relating to the Master Servicer
or
substantially all of its property; or the Master Servicer admits in writing
its
inability to pay its debts generally as they become due, files a petition
to
take advantage of any applicable insolvency or reorganization statute, makes
an
assignment for the benefit of its creditors, or voluntarily suspends payment
of
its obligations; or
(v) the
Master Servicer assigns or delegates its duties or rights under this Agreement
in contravention of the provisions permitting such assignment or delegation
under Section 6.05; or
(vi) any
failure of the Master Servicer to make any Advance (other than a Nonrecoverable
Advance) required to be made from its own funds pursuant to Section 4.03 by
5:00 p.m. New York time on the Business Day prior to the applicable Distribution
Date.
In
each
and every such case, so long as such Master Servicer Event of Default with
respect to the Master Servicer shall not have been remedied, either the Trustee,
the NIMS Insurer or the Holders of Certificates evidencing not less than
51% of
the Voting Rights, by notice in writing to the Depositor, the Master Servicer
(and to the Trustee if given by such Certificateholders), with a copy to
the
NIMS Insurer and the Rating Agencies, may terminate all of the rights and
obligations (but not the liabilities) of the Master Servicer under this
Agreement and in and to the Mortgage Loans and/or the REO Property master
serviced by the Master Servicer and the proceeds thereof. Upon the receipt
by
the Master Servicer of the written notice, all authority and power of the
Master
Servicer under this Agreement, whether with respect to the Certificates,
the
Mortgage Loans, REO Property or under any other related agreements (but only
to
the extent that such other agreements relate to the Mortgage Loans or related
REO Property) shall, subject to Section 7.03, automatically and without
further action pass to and be vested in the Trustee pursuant to this
Section 7.01(b); and, without limitation, the Trustee is hereby authorized
and empowered to execute and deliver, on behalf of the Master Servicer as
attorney-in-fact or otherwise, any and all documents and other instruments
and
to do or accomplish all other acts or things necessary or appropriate to
effect
the purposes of such notice of termination, whether to complete the transfer
and
endorsement or assignment of the Mortgage Loans and related documents, or
otherwise. The Master Servicer agrees to cooperate with the Trustee in effecting
the termination of the Master Servicer’s rights and obligations hereunder,
including, without limitation, the transfer to the Trustee of (i) the property
and amounts which are then or should be part of the Trust Fund or which
thereafter become part of the Trust Fund; and (ii) originals or copies of
all
documents of the Master Servicer reasonably requested by the Trustee to enable
it to assume the Master Servicer’s duties thereunder. In addition to any other
amounts which are then, or, notwithstanding the termination of its activities
under this Agreement, may become payable to the Master Servicer under this
Agreement, the Master Servicer shall be entitled to receive, out of any amount
received on account of a Mortgage Loan or related REO Property, that portion
of
such payments which it would have received as reimbursement under this Agreement
if notice of termination had not been given. The termination of the rights
and
obligations of the Master Servicer shall not affect any obligations incurred
by
the Master Servicer prior to such termination.
Notwithstanding
the foregoing, if a Master Servicer Event of Default described in clause
(vi) of
this Section 7.01(b) shall occur, the Trustee shall, by notice in writing
to the Master Servicer, which may be delivered by telecopy, immediately
terminate all of the rights and obligations of the Master Servicer thereafter
arising under this Agreement, but without prejudice to any rights it may
have as
a Certificateholder or to reimbursement of Advances and other advances of
its
own funds, and the Trustee shall act as provided in Section 7.03 to carry
out the duties of the Master Servicer, including the obligation to make any
Advance the nonpayment of which was a Master Servicer Event of Default described
in clause (vi) of this Section 7.01(b). Any such action taken by the
Trustee must be prior to the distribution on the relevant Distribution
Date.
| SECTION 7.02. |
Master
Servicer or Trustee to Act; Appointment of Successor
Servicer.
|
(a) From
the
time the Servicer receives a notice of termination, the Master Servicer or
(if
the Master Servicer is the Servicer) the Trustee (or such other successor
servicer as is acceptable to the NIMS Insurer) shall be the successor in
all
respects to the Servicer in its capacity as Servicer under this Agreement
and
the transactions set forth or provided for herein, and all the responsibilities,
duties and liabilities relating thereto and arising thereafter shall be assumed
by the Master Servicer or the Trustee, as applicable (except for any
representations or warranties of the Servicer under this Agreement, the
responsibilities, duties and liabilities contained in Section 2.05 and the
obligation to deposit amounts in respect of losses pursuant to Section 3.12)
by
the terms and provisions hereof; provided, however, the Master Servicer or
the
Trustee, as applicable, shall immediately assume the Servicer’s obligations to
make Advances pursuant to Section 4.03; provided, further, however, that
if the
Master Servicer or the Trustee, as applicable, is prohibited by law or
regulation from obligating itself to make advances regarding delinquent mortgage
loans, then the Master Servicer or the Trustee, as applicable, shall not
be
obligated to make Advances pursuant to Section 4.03; and provided further,
that
any failure to perform such duties or responsibilities caused by the Servicer’s
failure to provide information required by Section 7.01(a) shall not be
considered a default by the Master Servicer or the Trustee, as applicable,
as
successor to the Servicer hereunder. It is understood and acknowledged by
the
parties hereto that there will be a period of transition (not to exceed 90
days)
before the transition of servicing obligations is fully effective. As
compensation therefor, the Master Servicer or the Trustee, as applicable,
shall
be entitled to the Servicing Fee and all funds relating to the Mortgage Loans
to
which the Servicer would have been entitled if it had continued to act
hereunder. Notwithstanding the above and subject to Section 7.02(b) below,
the
Master Servicer or the Trustee, as applicable, if it shall be unwilling to
so
act, or shall, if it is unable to so act or if it is prohibited by law from
making advances regarding delinquent mortgage loans or if the Holders of
Certificates entitled to at least 51% of the Voting Rights or the NIMS Insurer
so request in writing to the Trustee, promptly appoint or petition a court
of
competent jurisdiction to appoint, an established mortgage loan servicing
institution acceptable to each Rating Agency and the NIMS Insurer and having
a
net worth of not less than $15,000,000, as the successor to the Servicer
under
this Agreement in the assumption of all or any part of the responsibilities,
duties or liabilities of the Servicer under this Agreement.
Pending
appointment of a successor to the Servicer hereunder, unless the Master Servicer
or the Trustee, as applicable, is prohibited by law from so acting, the Master
Servicer or the Trustee, as applicable, shall act in such capacity as
hereinabove provided. In connection with such appointment and assumption,
the
successor shall be entitled to receive compensation out of payments on Mortgage
Loans in an amount equal to the compensation which the Servicer would otherwise
have received pursuant to Section 3.18 (or such other compensation as the
Master
Servicer or the Trustee, as applicable, and such successor shall agree, not
to
exceed the Servicing Fee). The appointment of a successor servicer shall
not
affect any liability of the predecessor Servicer which may have arisen under
this Agreement prior to its termination as Servicer to pay any deductible
under
an insurance policy pursuant to Section 3.14 or to indemnify the NIMS Insurer
pursuant to Section 6.03, nor shall any successor servicer be liable for
any
acts or omissions of the predecessor servicer or for any breach by such servicer
of any of its representations or warranties contained herein or in any related
document or agreement. The Master Servicer or the Trustee, as applicable,
and
such successor shall take such action, consistent with this Agreement, as
shall
be necessary to effectuate any such succession. All reasonable Servicing
Transfer Costs shall be paid by the predecessor servicer upon presentation
of
reasonable documentation of such costs, and if such predecessor servicer
defaults in its obligation to pay such costs, such costs shall be paid by
the
successor servicer or the Master Servicer or the Trustee, as applicable (in
which case the successor servicer or the Master Servicer or the Trustee,
as
applicable, shall be entitled to reimbursement therefor from the assets of
the
Trust Fund).
(b) No
appointment of a successor to the Servicer under this Agreement shall be
effective until the assumption by the successor of all of the Servicer’s
responsibilities, duties and liabilities hereunder. In connection with such
appointment and assumption described herein, the Master Servicer or the Trustee,
as applicable, may make such arrangements for the compensation of such successor
out of payments on Mortgage Loans as it and such successor shall agree;
provided, however, that no such compensation shall be in excess of that
permitted the Servicer as such hereunder. The Depositor, the Trustee, the
Trust
Administrator, the Master Servicer and such successor shall take such action,
consistent with this Agreement, as shall be necessary to effectuate any such
succession. Pending appointment of a successor to the Servicer under this
Agreement the Master Servicer or the Trustee, as applicable, shall act in
such
capacity as hereinabove provided.
Any
successor to the Servicer, including the Master Servicer or the Trustee,
as
applicable, shall during the term of its service as servicer continue to
service
and administer the Mortgage Loans for the benefit of Certificateholders,
and
maintain in force a policy or policies of insurance covering errors and
omissions in the performance of its obligations as Servicer hereunder and
a
fidelity bond in respect of its officers, employees and agents to the same
extent as the Servicer is so required pursuant to Section 3.14.
(c) Notwithstanding
any provision in this Agreement to the contrary, for a period of 30 days
following the date on which the Servicer shall have received a notice of
a
Servicer Event of Default pursuant to Section 7.01, or a default under a
loan
agreement pursuant to Section 6.04 or a Servicer resignation pursuant to
Section
6.04, the terminated Servicer or its designee may, with the consent of the
NIMS
Insurer, appoint a successor servicer that satisfies the eligibility criteria
of
a successor servicer set forth above; provided that such successor servicer
agrees to fully effect the servicing transfer within 90 days following the
termination of the Servicer and to make all Advances that would otherwise
be
made by the Master Servicer or the Trustee, as applicable, under Section
7.01 as
of the date of such appointment. Any proceeds received in connection with
the
appointment of such successor servicer (after
deduction of any expenses incurred in connection with the servicing
transfer)
shall be
the property of the terminated Servicer or its designee. Notwithstanding
the
foregoing, in the event of a Servicer Event of Default pursuant to Section
7.01(a)(vii), either (i) the Servicer shall remit the amount of the required
Advance by 3:00 p.m. New York time on the Business Day following the Servicer
Remittance Date or (ii) by 3:00 p.m. New York time on the Business Day following
the Servicer Remittance Date, the Servicer shall have appointed a successor
servicer that satisfies the eligibility criteria of a successor servicer
set
forth above and that has remitted the amount of the required Advance to the
Trust Administrator. If the Servicer fails to adhere to the requirements
set
forth in the immediately preceding sentence, the Master Servicer or the Trustee,
as applicable, shall be the successor in all respects to the Servicer in
its
capacity as Servicer under this Agreement and shall immediately assume the
Servicer’s obligations to make Advances. In no event shall the termination of
the Servicer under this Agreement result in any diminution of the Servicer’s
right to reimbursement for any outstanding Advances or Servicing Advances
or
accrued and unpaid Servicing Fees due such Servicer at the time of termination.
Reimbursement of unreimbursed Advances and Servicing Advances and accrued
and
unpaid Servicing Fees shall be made on a FIFO, loan-by-loan basis. The Servicer
shall continue to be entitled to the benefits of Section 6.03 hereof related
to
indemnification, notwithstanding any termination hereunder.
(d) In
connection with the termination or resignation of the Servicer hereunder,
either
(i) the successor servicer, including the Master Servicer or the Trustee,
as
applicable, if the Master Servicer or the Trustee, as applicable, is acting
as
successor servicer, shall represent and warrant that it is a member of MERS
in
good standing and shall agree to comply in all material respects with the
rules
and procedures of MERS in connection with the servicing of the Mortgage Loans
that are registered with MERS, in which case the predecessor servicer shall
cooperate with the successor servicer in causing MERS to revise its records
to
reflect the transfer of servicing to the successor servicer as necessary
under
MERS’ rules and regulations, or (ii) the predecessor servicer shall cooperate
with the successor servicer in causing MERS to execute and deliver an assignment
of Mortgage in recordable form to transfer the Mortgage from MERS to the
Master
Servicer or the Trustee, as applicable, and to execute and deliver such other
notices, documents and other instruments as may be necessary or desirable
to
effect a transfer of such Mortgage Loan or servicing of such Mortgage Loan
on
the MERS® System to the successor servicer. The predecessor servicer shall file
or cause to be filed any such assignment in the appropriate recording office.
The predecessor servicer shall bear any and all fees of MERS, costs of preparing
any assignments of Mortgage, and fees and costs of filing any assignments
of
Mortgage that may be required under this Section 7.02(d).
| SECTION 7.03. |
Trustee
to Act; Appointment of Successor Master
Servicer.
|
(a) Upon
the
receipt by the Master Servicer of a notice of termination pursuant to
Section 7.01(b) or an Opinion of Counsel rendered by Independent counsel
pursuant to Section 6.05(b) to the effect that the Master Servicer is
legally unable to act or to delegate its duties to a Person which is legally
able to act, the Trustee shall automatically become the successor in all
respects to the Master Servicer in its capacity under this Agreement and
the
transactions set forth or provided for herein and shall thereafter be subject
to
all the responsibilities, duties, liabilities and limitations on liabilities
relating thereto placed on the Master Servicer by the terms and provisions
hereof; provided, however, that the Trustee (i) shall have no obligation
whatsoever with respect to any liability (other than Advances deemed recoverable
and not previously made) incurred by the Master Servicer at or prior to the
time
of termination and (ii) shall not be obligated to perform any obligation
of the
Master Servicer under Section 3.20 or 3.21 with respect to any period of
time
during which the Trustee was not the Master Servicer. As compensation therefor,
but subject to Section 6.05, the Trustee shall be entitled to compensation
which the Master Servicer would have been entitled to retain if the Master
Servicer had continued to act hereunder, except for those amounts due the
Master
Servicer as reimbursement permitted under this Agreement for advances previously
made or expenses previously incurred. Notwithstanding the above, the Trustee
may, if it shall be unwilling so to act, or shall, if it is legally unable
so to
act, appoint or petition a court of competent jurisdiction to appoint, any
established housing and home finance institution which is a Xxxxxx Xxx- or
Xxxxxxx Mac-approved servicer, acceptable to the NIMS Insurer and with respect
to a successor to the Master Servicer only, having a net worth of not less
than
$50,000,000, as the successor to the Master Servicer hereunder in the assumption
of all or any part of the responsibilities, duties or liabilities of the
Master
Servicer hereunder; provided, that the Trustee shall obtain consent from
the
NIMS Insurer and a letter or other evidence each Rating Agency that the ratings,
if any, on each of the Certificates will not be lowered as a result of the
selection of the successor to the Master Servicer. Pending appointment of
a
successor to the Master Servicer hereunder, the Trustee shall act in such
capacity as hereinabove provided. In connection with such appointment and
assumption, the Trustee may make such arrangements for the compensation of
such
successor out of payments on the Mortgage Loans as it and such successor
shall
agree; provided, however, that the provisions of Section 6.05 shall apply,
the compensation shall not be in excess of that which the Master Servicer
would
have been entitled to if the Master Servicer had continued to act hereunder,
and
that such successor shall undertake and assume the obligations of the Trustee
to
pay compensation to any third Person acting as an agent or independent
contractor in the performance of master servicing responsibilities hereunder.
The Trustee and such successor shall take such action, consistent with this
Agreement, as shall be necessary to effectuate any such succession.
If
the
Master Servicer and the Trust Administrator are the same entity, then at
any
time the Master Servicer resigns or is removed as Master Servicer, the Trust
Administrator shall also be removed hereunder. All reasonable Master Servicing
Transfer Costs shall be paid by the predecessor Master Servicer upon
presentation of reasonable documentation of such costs, and if such predecessor
Master Servicer defaults in its obligation to pay such costs, such costs
shall
be paid by the successor Master Servicer or the Trustee (in which case the
successor Master Servicer or the Trustee, as applicable, shall be entitled
to
reimbursement therefor from the assets of the Trust Fund).
(b) If
the
Trustee shall succeed to any duties of the Master Servicer respecting the
Mortgage Loans as provided herein, it shall do so in a separate capacity
and not
in its capacity as Trustee and, accordingly, the provisions of Article VIII
shall be inapplicable to the Trustee in its duties as the successor to the
Master Servicer in the master servicing of the Mortgage Loans (although such
provisions shall continue to apply to the Trustee in its capacity as Trustee);
the provisions of Article VI, however, shall apply to it in its capacity
as
successor Master Servicer.
| SECTION 7.04. |
Notification
to Certificateholders.
|
(a) Upon
any
termination of the Servicer or the Master Servicer pursuant to Section 7.01
above or any appointment of a successor to the Servicer or Master Servicer
pursuant to Section 7.02 or Section 7.03 above, the Trust Administrator, or
in the event of the termination of the Master Servicer, the Trustee (or such
other successor Trust Administrator) shall give prompt written notice thereof
to
the Servicer, the Credit Risk Manager, the NIMS Insurer, the Master Servicer
and
the Certificateholders at their respective addresses appearing in the
Certificate Register.
(b) Not
later
than the later of 60 days after the occurrence of any event, which constitutes
or which, with notice or lapse of time or both, would constitute a Servicer
Event of Default or a Master Servicer Event of Default or five days after
a
Responsible Officer of the Trust Administrator (in the case of a Servicer
Event
of Default) or the Trustee (in the case of a Master Servicer Event of Default)
becomes aware of the occurrence of such an event, the Trust Administrator
or
Trustee, as applicable, shall transmit by mail to the Credit Risk Manager,
the
NIMS Insurer and to all Holders of Certificates notice of each such occurrence,
unless such Servicer Event of Default or Master Servicer Event of Default
shall
have been cured or waived.
| SECTION 7.05. |
Waiver
of Servicer Events of Default and Master Servicer Events of
Termination.
|
The
Holders representing at least 66% of the Voting Rights (with the consent
of the
NIMS Insurer) evidenced by all Classes of Certificates affected by any default,
Servicer Event of Default or Master Servicer Event of Default hereunder may
waive such default, Servicer Event of Default or Master Servicer Event of
Default; provided, however, that a Servicer Event of Default under clause
(i) or
(vii) of Section 7.01(a) or Master Servicer Event of Default under clause
(i) or
(vi) of Section 7.01(b) may be waived only by all of the Holders of the
Regular Certificates (with the consent of the NIMS Insurer). Upon any such
waiver of a default, Servicer Event of Default or Master Servicer Event of
Default, such default, Servicer Event of Default or Master Servicer Event
of
Default shall cease to exist and shall be deemed to have been remedied for
every
purpose hereunder. No such waiver shall extend to any subsequent or other
default, Servicer Event of Default or Master Servicer Event of Default or
impair
any right consequent thereon except to the extent expressly so waived. Notice
of
any such waiver shall be given by the Trust Administrator or the Trustee
as
applicable, to the Rating Agencies and the NIMS Insurer.
| SECTION 7.06. |
Survivability
of Servicer and Master Servicer
Liabilities.
|
Notwithstanding
anything herein to the contrary, upon termination of the Servicer or the
Master
Servicer hereunder, any liabilities
of
the Servicer or the Master Servicer, as applicable, which accrued prior to
such
termination shall survive such termination.
ARTICLE
VIII
CONCERNING
THE TRUSTEE AND THE TRUST ADMINISTRATOR
| SECTION 8.01. |
Duties
of Trustee and Trust Administrator.
|
The
Trustee and the Trust Administrator, prior to the occurrence of a Servicer
Event
of Default or Master Servicer Event of Default and after the curing of all
Servicer Events of Default or Master Servicer Events of Termination which
may
have occurred, undertakes to perform such duties and only such duties as
are
specifically set forth in this Agreement. If a Servicer Event of Default
or
Master Servicer Event of Default has occurred (which has not been cured)
of
which a Responsible Officer has knowledge, each of the Trustee and the Trust
Administrator shall exercise such of the rights and powers vested in it by
this
Agreement, and use the same degree of care and skill in their exercise, as
a
prudent man would exercise or use under the circumstances in the conduct
of his
own affairs.
Each
of
the Trustee and the Trust Administrator, upon receipt of all resolutions,
certificates, statements, opinions, reports, documents, orders or other
instruments furnished to it which are specifically required to be furnished
pursuant to any provision of this Agreement, shall examine them to determine
whether they conform to the requirements of this Agreement; provided, however,
that neither the Trustee nor the Trust Administrator will be responsible
for the
accuracy or content of any such resolutions, certificates, statements, opinions,
reports, documents or other instruments. If any such instrument is found
not to
conform to the requirements of this Agreement in a material manner the Trustee
or the Trust Administrator, as applicable, shall take such action as it deems
appropriate to have the instrument corrected, and if the instrument is not
corrected to the Trustee’s or the Trust Administrator’s satisfaction, the
Trustee or the Trust Administrator, as applicable, will provide notice thereof
to the Certificateholders and the NIMS Insurer.
No
provision of this Agreement shall be construed to relieve the Trustee or
the
Trust Administrator from liability for its own negligent action, its own
negligent failure to act or its own misconduct; provided, however,
that:
(i) Prior
to
the occurrence of a Servicer Event of Default or Master Servicer Event of
Default, and after the curing of all such Servicer Events of Default or Master
Servicer Events of Termination which may have occurred, the duties and
obligations of the Trustee and the Trust Administrator shall be determined
solely by the express provisions of this Agreement, the Trustee and the Trust
Administrator shall not be liable except for the performance of such duties
and
obligations as are specifically set forth in this Agreement, no implied
covenants or obligations shall be read into this Agreement against the Trustee
or the Trust Administrator and, in the absence of bad faith on the part of
the
Trustee or the Trust Administrator, as applicable, the Trustee or the Trust
Administrator, as applicable, may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon any
certificates or opinions furnished to the Trustee or the Trust Administrator,
as
the case may be, and conforming to the requirements of this
Agreement;
(ii) Neither
the Trustee nor the Trust Administrator shall be personally liable for an
error
of judgment made in good faith by a Responsible Officer of the Trustee or
the
Trust Administrator, as applicable, unless it shall be proved that the Trustee
or the Trust Administrator, as the case may be, was negligent in ascertaining
the pertinent facts;
(iii) Neither
the Trustee nor the Trust Administrator shall be personally liable with respect
to any action taken, suffered or omitted to be taken by it in good faith
in
accordance with the direction of the NIMS Insurer or the Holders of Certificates
evidencing not less than 51% of the Voting Rights relating to the time, method
and place of conducting any proceeding for any remedy available to the Trustee
or the Trust Administrator, as applicable, or exercising or omitting to exercise
any trust or power conferred upon the Trustee, under this Agreement;
and
(iv) The
Trustee shall not be required to take notice or be deemed to have notice
or
knowledge of any default, Servicer Event of Default or Master Servicer Event
of
Default unless a Responsible Officer of the Trustee at the Corporate Trust
Office obtains actual knowledge of such failure or the Trustee receives written
notice of such failure from the Depositor, the Servicer, the NIMS Insurer
or the
Holders of Certificates evidencing not less than 51% of the Voting
Rights.
Neither
the Trustee nor the Trust Administrator shall be required to expend or risk
its
own funds or otherwise incur financial liability in the performance of any
of
its duties hereunder, or in the exercise of any of its rights or powers,
if
there is reasonable ground for believing that the repayment of such funds
or
adequate indemnity against such risk or liability is not reasonably assured
to
it, and none of the provisions contained in this Agreement shall in any event
require the Trustee to perform, or be responsible for the manner of performance
of, any of the obligations of the Master Servicer under this Agreement, except
during such time, if any, as the Trustee shall be the successor to, and be
vested with the rights, duties, powers and privileges of, the Master Servicer
in
accordance with the terms of this Agreement.
| SECTION 8.02. |
Certain
Matters Affecting the Trustee and the Trust Administrator.
|
(a) Except
as
otherwise provided in Section 8.01:
(i) Either
the Trustee or the Trust Administrator may request and rely upon, and shall
be
protected in acting or refraining from acting upon, any resolution, Officers’
Certificate, certificate of auditors or any other certificate, statement,
instrument, opinion, report, notice, request, consent, order, appraisal,
bond or
other paper or document reasonably believed by it to be genuine and to have
been
signed or presented by the proper party or parties, and the manner of obtaining
consents and of evidencing the authorization of the execution thereof by
Certificateholders shall be subject to such reasonable regulations as the
Trustee or the Trust Administrator may prescribe;
(ii) Either
the Trustee or the Trust Administrator may consult with counsel and any Opinion
of Counsel shall be full and complete authorization and protection in respect
of
any action taken or suffered or omitted by it hereunder in good faith and
in
accordance with such Opinion of Counsel;
(iii) Neither
the Trustee nor the Trust Administrator shall be under any obligation to
exercise any of the rights or powers vested in it by this Agreement, or to
institute, conduct or defend any litigation hereunder or in relation hereto,
at
the request, order or direction of any of the Certificateholders or the NIMS
Insurer, pursuant to the provisions of this Agreement, unless such
Certificateholders or the NIMS Insurer, as applicable, shall have offered
to the
Trustee or the Trust Administrator, as applicable, reasonable security or
indemnity against the costs, expenses and liabilities which may be incurred
therein or thereby; the right of the Trustee or the Trust Administrator to
perform any discretionary act enumerated in this Agreement shall not be
construed as a duty, and neither the Trustee nor the Trust Administrator
shall
be answerable for other than its negligence or willful misconduct in the
performance of any such act; nothing contained herein shall, however, relieve
the Trustee of the obligation, upon the occurrence of a Master Servicer Event
of
Default of which the Trustee has received written notice or of which a
Responsible Officer of the Trustee has actual knowledge (which has not been
cured or waived), to exercise such of the rights and powers vested in it
by this
Agreement, and to use the same degree of care and skill in their exercise,
as a
prudent person would exercise under the circumstances in the conduct of his
own
affairs;
(iv) Prior
to
the occurrence of a Servicer Event of Default or Master Servicer Event of
Default hereunder and after the curing or waiver of all Servicer Events of
Default or Master Servicer Events of Termination which may have occurred,
neither the Trustee nor the Trust Administrator shall be personally liable
for
any action taken, suffered or omitted by it in good faith and believed by
it to
be authorized or within the discretion or rights or powers conferred upon
it by
this Agreement;
(v) Prior
to
the occurrence of a Servicer Event of Default or Master Servicer Event of
Default and after the curing of all Servicer Events of Default or Master
Servicer Events of Termination which may have occurred, neither the Trustee
nor
the Trust Administrator shall be bound to make any investigation into the
facts
or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, approval, bond or other
paper
or documents, unless requested in writing to do so by the NIMS Insurer or
the
Holders of Certificates entitled to at least 25% of the Voting Rights; provided,
however, that if the payment within a reasonable time to the Trustee or the
Trust Administrator, as applicable, of the costs, expenses or liabilities
likely
to be incurred by it in the making of such investigation is, in the opinion
of
the Trustee or the Trust Administrator, as applicable, not reasonably assured
to
the Trustee or the Trust Administrator, as applicable, by the security afforded
to it by the terms of this Agreement, the Trustee or the Trust Administrator,
as
applicable, may require reasonable indemnity against such cost, expense or
liability as a condition to such proceeding; and
(vi) Either
the Trustee or the Trust Administrator may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or through
agents or attorneys, custodians or nominees.
(b) All
rights of action under this Agreement or under any of the Certificates,
enforceable by the Trustee, may be enforced by it without the possession
of any
of the Certificates, or the production thereof at the trial or other proceeding
relating thereto, and any such suit, action or proceeding instituted by the
Trustee shall be brought in its name for the benefit of all the Holders of
such
Certificates, subject to the provisions of this Agreement.
| SECTION 8.03. |
Neither
Trustee nor Trust Administrator Liable for Certificates or Mortgage
Loans.
|
The
recitals contained herein and in the Certificates (other than the signature
of
the Trust Administrator, the authentication of the Trust Administrator on
the
Certificates, the acknowledgments of the Trustee contained in Article II
and the
representations and warranties of the Trustee and the Trust Administrator
in
Section 8.13) shall be taken as the statements of the Depositor and neither
the Trustee nor the Trust Administrator assumes any responsibility for their
correctness. Neither the Trustee nor the Trust Administrator makes any
representations or warranties as to the validity or sufficiency of this
Agreement (other than as specifically set forth in Section 8.12) or of the
Certificates (other than the signature of the Trust Administrator and
authentication of the Trust Administrator on the Certificates) or of any
Mortgage Loan or related document. Neither the Trustee nor the Trust
Administrator shall be accountable for the use or application by the Depositor
of any of the Certificates or of the proceeds of such Certificates, or for
the
use or application of any funds paid to the Depositor, the Servicer or the
Master Servicer in respect of the Mortgage Loans or deposited in or withdrawn
from the Collection Account by the Servicer or the Distribution Account by
the
Master Servicer.
| SECTION 8.04. |
Trustee
and Trust Administrator May Own
Certificates.
|
Each
of
the Trustee and the Trust Administrator in its individual capacity or any
other
capacity may become the owner or pledgee of Certificates with the same rights
it
would have if it were not Trustee or Trust Administrator, as applicable.
Each of
the Trustee and the Trust Administrator in its individual capacity or any
other
capacity may transact any banking and trust business with the Originator,
the
Servicer, the Depositor or their Affiliates.
| SECTION 8.05. |
Trust
Administrator’s and Trustee’s Fees and
Expenses.
|
On
each
Distribution Date, the Trust Administrator shall be entitled to compensation
as
separately agreed with the Master Servicer. The annual fees of the Trustee
hereunder and of the Custodian shall be paid in accordance with side letter
agreements with the Trust Administrator and at the sole expense of the Trust
Administrator. The Trustee, the Trust Administrator or any director, officer,
employee or agent of any of them, shall be indemnified by the Trust Fund
and
held harmless against any loss, liability or expense (not including expenses
and
disbursements incurred or made by the Trustee or the Trust Administrator,
including the compensation and the expenses and disbursements of its agents
and
counsel, in the ordinary course of the Trustee’s or the Trust Administrator’s
performance in accordance with the provisions of this Agreement) incurred
by the
Trustee or by the Trust Administrator arising out of or in connection with
the
acceptance or administration of the obligations and duties of the Trustee
or the
Trust Administrator under this Agreement, other than any loss, liability
or
expense (i) resulting from a breach of the Servicer’s or the Master Servicer’s
obligations and duties under this Agreement for which the Trustee or the
Trust
Administrator, as applicable, is indemnified under this Agreement or (ii)
any
loss, liability or expense incurred by reason of willful misfeasance, bad
faith
or negligence of the Trustee or of the Trust Administrator, as applicable,
in
the performance of its duties hereunder or by reason of the Trustee’s or the
Trust Administrator’s, as applicable, reckless disregard of obligations and
duties hereunder or as a result of a breach of the Trustee’s or the Trust
Administrator’s, as applicable, obligations under Article X hereof. Any amounts
payable to the Trustee, the Trust Administrator or any director, officer,
employee or agent of the Trustee or the Trust Administrator, in respect of
the
indemnification provided by this Section 8.05, or pursuant to any other
right of reimbursement from the Trust Fund that the Trustee, the Trust
Administrator or any director, officer, employee or agent of the Trustee
or the
Trust Administrator, may have hereunder in its capacity as such, may be
withdrawn by the Trust Administrator for payment to the applicable indemnified
Person from the Distribution Account at any time. The foregoing indemnity
shall
survive the resignation or removal of the Trustee or the Trust
Administrator.
| SECTION 8.06. |
Eligibility
Requirements for Trustee and Trust
Administrator.
|
Each
of
the Trustee and the Trust Administrator hereunder shall at all times be an
entity duly organized and validly existing under the laws of the United States
of America or any state thereof, authorized under such laws to exercise
corporate trust powers, having a combined capital and surplus of at least
$50,000,000 and subject to supervision or examination by federal or state
authority. If such entity publishes reports of condition at least annually,
pursuant to law or to the requirements of the aforesaid supervising or examining
authority, then for the purposes of this Section 8.06, the combined capital
and surplus of such entity shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published.
The
principal offices of each of the Trustee and the Trust Administrator (other
than
the initial Trustee and initial Trust Administrator) shall be in a state
with
respect to which an Opinion of Counsel has been delivered to such Trustee
or
Trust Administrator, as applicable, at the time such Trustee or Trust
Administrator, as applicable, is appointed Trustee or Trust Administrator,
as
applicable, to the effect that the Trust will not be a taxable entity under
the
laws of such state. In case at any time the Trustee or the Trust Administrator
shall cease to be eligible in accordance with the provisions of this
Section 8.06, the Trustee or the Trust Administrator, as applicable, shall
resign immediately in the manner and with the effect specified in
Section 8.07.
| SECTION 8.07. |
Resignation
and Removal of the Trustee or Trust
Administrator.
|
The
Trustee or the Trust Administrator may at any time resign and be discharged
from
the trusts hereby created by giving written notice thereof to the Depositor,
the
NIMS Insurer, the Servicer, the Master Servicer, each Rating Agency and,
if the
Trustee is resigning, to the Trust Administrator, or, if the Trust Administrator
is resigning, to the Trustee. Upon receiving such notice of resignation,
the
Depositor shall promptly appoint a successor Trustee or Trust Administrator,
(which may be the same Person in the event both the Trustee and the Trust
Administrator resign or are removed) acceptable to the NIMS Insurer by written
instrument, in duplicate, one copy of which instrument shall be delivered
to the
resigning Trustee or Trust Administrator, as applicable, and one copy to
the
successor Trustee or Trust Administrator. If no successor Trustee or Trust
Administrator, as applicable, shall have been so appointed and having accepted
appointment within 30 days after the giving of such notice of resignation,
the
resigning Trustee or Trust Administrator may petition any court of competent
jurisdiction for the appointment of a successor Trustee or Trust Administrator,
as applicable.
If
the
Trust Administrator and the Master Servicer are the same entity, then at
any
time the Trust Administrator resigns or is removed as Trust Administrator,
the
Master Servicer shall also be removed hereunder.
If
at any
time the Trustee or the Trust Administrator shall cease to be eligible in
accordance with the provisions of Section 8.06 and shall fail to resign
after written request therefor by the Depositor or the NIMS Insurer (or in
the
case of the Trust Administrator, the Trustee), or if at any time the Trustee
or
the Trust Administrator shall be legally unable to act, or shall be adjudged
bankrupt or insolvent, or a receiver of the Trustee or the Trust Administrator
or of its property shall be appointed, or any public officer shall take charge
or control of the Trustee or the Trust Administrator or of its property or
affairs for the purpose of rehabilitation, conservation or liquidation, then
the
Depositor, the NIMS Insurer, the Servicer or the Master Servicer may remove
the
Trustee or the Trust Administrator, as applicable. If the Depositor, the
Servicer or the Master Servicer removes the Trustee or the Trust Administrator
under the authority of the immediately preceding sentence, the Depositor
shall
promptly appoint a successor Trustee or Trust Administrator, as applicable,
acceptable to the NIMS Insurer, by written instrument, in duplicate, one
copy of
which instrument shall be delivered to the Trustee or Trust Administrator
so
removed and one copy to the successor Trustee or Trust
Administrator.
The
Holders of Certificates entitled to at least 51% of the Voting Rights (or
the
NIMS Insurer upon failure of the Trustee to perform its obligations hereunder)
may at any time remove the Trustee or the Trust Administrator and appoint
a
successor trustee acceptable to the NIMS Insurer, by written instrument or
instruments, in triplicate, signed by such Holders or their attorneys-in-fact
duly authorized, one complete set of which instruments shall be delivered
to the
Depositor, one complete set to the Trustee or Trust Administrator so removed
and
one complete set to the successor so appointed. A copy of such instrument
shall
be delivered to the Certificateholders, the Servicer and the Master Servicer
by
the Depositor.
The
Trust
Administrator (i) may not be the Originator, the Servicer, the Depositor
or an
affiliate of the Depositor unless the Trust Administrator is an institutional
trust department, (ii) must be authorized to exercise corporate trust powers
under the laws of its jurisdiction of organization, and (iii) must be rated
at
least “A/F1” by Fitch, if Fitch is a Rating Agency, or the equivalent rating by
S&P or Xxxxx’x, or such other rating as is acceptable to Fitch as evidenced
by a Rating Agency confirmation. If no successor Trust Administrator shall
have
been appointed and shall have accepted appointment within 60 days after the
Trust Administrator ceases to be the Trust Administrator pursuant to this
Section 8.07, then the Trustee shall perform the duties of the Trust
Administrator pursuant to this Agreement. The Trustee shall notify the Rating
Agencies of any change of Trust Administrator.
Any
resignation or removal of the Trustee or Trust Administrator and appointment
of
a successor Trustee or Trust Administrator pursuant to any of the provisions
of
this Section shall not become effective until acceptance of appointment by
the successor trustee as provided in Section 8.08.
Notwithstanding
anything to the contrary contained herein, the Master Servicer and the Trust
Administrator shall at all times be the same Person.
| SECTION 8.08. |
Successor
Trustee or Trust Administrator.
|
Any
successor Trustee or Trust Administrator appointed as provided in
Section 8.07 shall execute, acknowledge and deliver to the Depositor, the
NIMS Insurer, the Servicer, the Master Servicer and to its predecessor Trustee
or Trust Administrator an instrument accepting such appointment hereunder,
and
thereupon the resignation or removal of the predecessor Trustee or Trust
Administrator shall become effective, and such successor Trustee or Trust
Administrator, without any further act, deed or conveyance, shall become
fully
vested with all the rights, powers, duties and obligations of its predecessor
hereunder, with like effect as if originally named as Trustee or Trust
Administrator. The Depositor and the predecessor Trustee or Trust Administrator
shall execute and deliver such instruments and do such other things as may
reasonably be required for fully and certainly vesting and confirming in
the
successor Trustee or Trust Administrator all such rights, powers, duties
and
obligations.
No
successor Trustee or Trust Administrator shall accept appointment as provided
in
this Section 8.08 unless at the time of such acceptance such successor
Trustee or Trust Administrator shall be eligible under the provisions of
Section 8.06 and the appointment of such successor Trustee or Trust
Administrator shall not result in a downgrading of the Regular Certificates
by
any Rating Agency, as evidenced by a letter from each Rating
Agency.
Upon
acceptance of appointment by a successor Trustee or Trust Administrator as
provided in this Section 8.08, the successor Trustee or Trust Administrator
shall mail notice of the appointment of a successor Trustee or Trust
Administrator hereunder to all Holders of Certificates at their addresses
as
shown in the Certificate Register and to each Rating Agency.
Any
Person appointed as successor trust administrator pursuant to this Agreement
shall also be required to serve as successor supplemental interest trust
trustee
under the Interest Rate Swap Agreement.
| SECTION 8.09. |
Merger
or Consolidation of Trustee or Trust
Administrator.
|
Any
entity into which the Trustee or the Trust Administrator may be merged or
converted or with which it may be consolidated, or any entity resulting from
any
merger, conversion or consolidation to which the Trustee or the Trust
Administrator shall be a party, or any entity succeeding to the business
of the
Trustee or Trust Administrator, shall be the successor of the Trustee or
the
Trust Administrator hereunder, as applicable, provided such entity shall
be
eligible under the provisions of Section 8.06 and 8.08, without the
execution or filing of any paper or any further act on the part of any of
the
parties hereto, anything herein to the contrary notwithstanding.
| SECTION 8.10. |
Appointment
of Co-Trustee or Separate Trustee.
|
Notwithstanding
any other provisions hereof, at any time, for the purpose of meeting any
legal
requirements of any jurisdiction in which any part of REMIC I or property
securing the same may at the time be located, the Trustee shall have the
power
and shall execute and deliver all instruments to appoint one or more Persons
approved by the Trustee and the NIMS Insurer to act as co-trustee or
co-trustees, jointly with the Trustee, or separate trustee or separate trustees,
of all or any part of REMIC I, and to vest in such Person or Persons, in
such
capacity, such title to REMIC I, or any part thereof, and, subject to the
other
provisions of this Section 8.10, such powers, duties, obligations, rights
and trusts as the Trustee may consider necessary or desirable. Any such
co-trustee or separate trustee shall be subject to the written approval of
the
NIMS Insurer. If the NIMS Insurer shall not have joined in such appointment
within 15 days after the receipt by it of a request to do so, the Trustee
alone
shall have the power to make such appointment. No co-trustee or separate
trustee
hereunder shall be required to meet the terms of eligibility as a successor
trustee under Section 8.06 hereunder and no notice to Holders of
Certificates of the appointment of co-trustee(s) or separate trustee(s) shall
be
required under Section 8.08 hereof.
In
the
case of any appointment of a co-trustee or separate trustee pursuant to this
Section 8.10 all rights, powers, duties and obligations conferred or
imposed upon the Trustee shall be conferred or imposed upon and exercised
or
performed by the Trustee and such separate trustee or co-trustee jointly,
except
to the extent that under any law of any jurisdiction in which any particular
act
or acts are to be performed by the Trustee (whether as Trustee hereunder
or as
successor to a defaulting Master Servicer hereunder), the Trustee shall be
incompetent or unqualified to perform such act or acts, in which event such
rights, powers, duties and obligations (including the holding of title to
REMIC
I or any portion thereof in any such jurisdiction) shall be exercised and
performed by such separate trustee or co-trustee at the direction of the
Trustee.
Any
notice, request or other writing given to the Trustee shall be deemed to
have
been given to each of the then separate trustees and co-trustees, as effectively
as if given to each of them. Every instrument appointing any separate trustee
or
co-trustee shall refer to this Agreement and the conditions of this Article
VIII. Each separate trustee and co-trustee, upon its acceptance of the trust
conferred, shall be vested with the estates or property specified in its
instrument of appointment, either jointly with the Trustee, or separately,
as
may be provided therein, subject to all the provisions of this Agreement,
specifically including every provision of this Agreement relating to the
conduct
of, affecting the liability of, or affording protection to, the Trustee.
Every
such instrument shall be filed with the Trustee and a copy thereof given
to the
NIMS Insurer.
Any
separate trustee or co-trustee may, at any time, constitute the Trustee,
its
agent or attorney-in-fact, with full power and authority, to the extent not
prohibited by law, to do any lawful act under or in respect of this Agreement
on
its behalf and in its name. If any separate trustee or co-trustee shall die,
become incapable of acting, resign or be removed, all of its estates,
properties, rights, remedies and trusts shall vest in and be exercised by
the
Trustee, to the extent permitted by law, without the appointment of a new
or
successor trustee or co-trustee.
| SECTION 8.11. |
Appointment
of Office or Agency; Appointment of
Custodian.
|
The
Trust
Administrator will appoint an office or agency in the City of Minneapolis,
Minnesota where the Certificates may be surrendered for registration of transfer
or exchange, and presented for final distribution, and where notices and
demands
to or upon the Trust Administrator in respect of the Certificates and this
Agreement may be served.
The
Trustee may, with the consent of the Depositor, the Servicer, the Master
Servicer and the NIMS Insurer, appoint a Custodian pursuant to a Custodial
Agreement to hold all or a portion of the Mortgage Files as agent for the
Trustee. The appointment of the Custodian may at any time be terminated pursuant
to the Custodial Agreement and a substitute Custodian appointed therefor
upon
the reasonable request of the Servicer, the Master Servicer or the NIMS Insurer
to the Trustee, the consent to which shall not be unreasonably withheld.
Deutsche
Bank National Trust Company is hereby appointed as the Custodian,
and the
Depositor, the Servicer and the Master Servicer each consent to such
appointment. Subject to Article VIII hereof, the Trustee agrees to comply
with
the terms of the Custodial Agreement and to enforce the terms and provisions
thereof against the Custodian, if applicable, for the benefit of the
Certificateholders having an interest in any Mortgage File held by the
Custodian. The Custodian shall be a depository institution or trust company
subject to supervision by federal or state authority, shall have combined
capital and surplus of at least $10,000,000 and shall be qualified to do
business in the jurisdiction in which it holds any Mortgage File. Subject
to
Section 8.02(a) and Section 2.02, in no event shall the appointment of the
Custodian pursuant to the Custodial Agreement diminish the obligations of
the
Trustee hereunder.
| SECTION 8.12. |
Representations
and Warranties.
|
Each
of
the Trustee and the Trust Administrator hereby represents and warrants to
the
Servicer, the Master Servicer and the Depositor, as of the Closing Date,
that:
(i) It
is a
national banking association duly organized, validly existing and in good
standing under the laws of the United States of America.
(ii) The
execution and delivery of this Agreement by it, and the performance and
compliance with the terms of this Agreement by it, will not violate its articles
of association or bylaws or constitute a default (or an event which, with
notice
or lapse of time, or both, would constitute a default) under, or result in
the
breach of, any material agreement or other instrument to which it is a party
or
which is applicable to it or any of its assets.
(iii) It
has
the full power and authority to enter into and consummate all transactions
contemplated by this Agreement, has duly authorized the execution, delivery
and
performance of this Agreement, and has duly executed and delivered this
Agreement.
(iv) This
Agreement, assuming due authorization, execution and delivery by the other
parties hereto, constitutes a valid, legal and binding obligation of it,
enforceable against it in accordance with the terms hereof, subject to (A)
applicable bankruptcy, insolvency, receivership, reorganization, moratorium
and
other laws affecting the enforcement of creditors’ rights generally, and (B)
general principles of equity, regardless of whether such enforcement is
considered in a proceeding in equity or at law.
(v) It
is not
in violation of, and its 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, any order or decree of any court or arbiter, or
any
order, regulation or demand of any federal, state or local governmental or
regulatory authority, which violation, in its good faith and reasonable
judgment, is likely to affect materially and adversely either the ability
of it
to perform its obligations under this Agreement or its financial
condition.
(vi) No
litigation is pending or, to the best of its knowledge, threatened against
it,
which would prohibit it from entering into this Agreement or, in its good
faith
reasonable judgment, is likely to materially and adversely affect either
the
ability of it to perform its obligations under this Agreement or its financial
condition.
ARTICLE
IX
TERMINATION
| SECTION 9.01. |
Termination
Upon Repurchase or Liquidation of All Mortgage
Loans.
|
(a) Subject
to Section 9.02, the respective obligations and responsibilities under this
Agreement of the Depositor, the Servicer, the Master Servicer, the Trust
Administrator and the Trustee (other than the indemnification obligations
of the
Servicer and the Master Servicer pursuant to Section 6.03 and of the
Servicer to make remittances to the Trust Administrator and the Trust
Administrator to make payments in respect of the REMIC I Regular Interests
and
the Classes of Certificates as hereinafter set forth) shall terminate upon
payment to the Certificateholders and the deposit of all amounts held by
or on
behalf of the Trust Administrator and required hereunder to be so paid or
deposited on the Distribution Date coinciding with or following the earlier
to
occur of (i) the purchase by the Terminator (as defined below) on a servicing
retained basis of all Mortgage Loans and each REO Property remaining in REMIC
I
and (ii) the final payment or other liquidation (or any advance with respect
thereto) of the last Mortgage Loan or REO Property remaining in REMIC I;
provided, however, that in no event shall the trust created hereby continue
beyond the earlier of (i) the expiration of 21 years from the death of the
last
survivor of the descendants of Xxxxxx X. Xxxxxxx, the late ambassador of
the
United States to the Court of St. Xxxxx, living on the date hereof and (ii)
the
Latest Possible Maturity Date as defined in the Preliminary Statement. Subject
to Section 3.10 hereof, the purchase by the Terminator of all Mortgage
Loans and each REO Property remaining in REMIC I shall be at a price (the
“Termination Price”) equal to the greater of (i) the Stated Principal Balance of
the Mortgage Loans and the appraised value of any REO Properties, such appraisal
to be conducted by an Independent appraiser mutually agreed upon by the
Terminator and the Trust Administrator in their reasonable discretion and
(ii)
the fair market value of all of the assets of REMIC I (as determined by the
Terminator and the Trust Administrator, as of the close of business on the
third
Business Day next preceding the date upon which notice of any such termination
is furnished to Certificateholders pursuant to clause (c) of this
Section 9.01) in each case, plus accrued and unpaid interest thereon at the
weighted average of the Mortgage Rates through the end of the Due Period
preceding the final Distribution Date plus unreimbursed Advances, Servicing
Advances, any unpaid Servicing Fees allocable to such Mortgage Loans and
REO
Properties and any other amounts owed to the Servicer, the Master Servicer,
the
Trust Administrator or the Trustee under this Agreement, any accrued and
unpaid
Net WAC Rate Carryover Amount and any Swap Termination Payment payable to
the
Swap Provider then remaining unpaid or which is due to the exercise of such
option; provided, however, such option may only be exercised if (i) the
Termination Price is sufficient to pay all interest accrued on, as well as
amounts necessary to retire the principal balance of, each class of notes
issued
pursuant to the Indenture and any remaining amounts owed to the trustee under
the Indenture and the NIMS Insurer on the date such notes are retired and
(ii)
the fair market value of the Mortgage Loans and REO Properties determined
as
described above is at least equal to the Stated Principal Balance of the
Mortgage Loans (after giving effect to scheduled payments of principal due
during the related Due Period, to the extent received or advanced, and
unscheduled collections of principal received during the related Prepayment
Period) and the appraised value of the REO Properties.
(b) The
majority holder of the Class CE Certificates (so long as such Holder is not
the
Seller or an affiliate of the Seller), or if such majority holder fails to
exercise such right, the Servicer, or if the Servicer fails to exercise such
right, the Master Servicer, or if the Master Servicer fails to exercise such
right, the NIMS Insurer, shall have the right (the party exercising such
right,
the “Terminator”), to purchase all of the Mortgage Loans and each REO Property
remaining in REMIC I pursuant to clause (i) of the preceding paragraph no
later
than the Determination Date in the month immediately preceding the Distribution
Date on which the Certificates will be retired; provided, however, that the
Terminator may elect to purchase all of the Mortgage Loans and each REO Property
remaining in REMIC I pursuant to clause (i) above only if the aggregate Stated
Principal Balance of the Mortgage Loans and each REO Property remaining in
the
Trust Fund at the time of such election is equal to or less than 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
Date.
By acceptance of the Residual Certificates, the Holder of the Residual
Certificates agrees for so long as any notes insured by the NIMS Insurer
and
secured by all or a portion of the Class CE, Class P, Class R or Class R-X
Certificates are outstanding, in connection with any termination hereunder,
to
assign and transfer any amounts in excess of par, and to the extent received
in
respect of such termination, to pay any such amounts to the Holders of the
Class
CE Certificates.
In
connection with any termination pursuant to this Section 9.01(b):
(i) At
least
twenty (20) days prior to the latest date on which notice of such optional
termination is required to be mailed to the Certificateholders pursuant to
Section 9.01(c), the Terminator shall notify in writing (which may be done
in
electronic format) the Swap Provider of the final Distribution Date on which
the
Terminator intends to terminate the Trust Fund;
(ii) No
later
than 4:00 pm (New York City time) four (4) Business Days prior to the final
Distribution Date specified in the notices required pursuant to Sections
9.01(c), the Trust Administrator shall request in writing (in accordance
with
the applicable provision of the Interest Rate Swap Agreement) and by phone
from
the Swap Provider the amount of the Estimated Swap Termination Payment. The
Swap
Provider shall, no later than 2:00 pm (New York City time) on the following
Business Day, notify in writing (which may be done in electronic format)
the
Trust Administrator of the amount of the Estimated Swap Termination Payment
and
the Trust Administrator shall promptly on the same day notify the Terminator
of
the amount of the Estimated Swap Termination Payment; and
(iii) Two
(2)
Business Days prior to the final Distribution Date specified in the notices
required pursuant to Sections 9.01(c), (x) the Terminator shall, no later
than
1:00 pm (New York City time) on such day, deliver to the Trust Administrator
and
the Trust Administrator shall deposit funds in the Distribution Account in
an
amount equal to the sum of the Termination Price (which shall be based on
the
Estimated Swap Termination Payment), and (y) if the Trust Administrator shall
have determined that the all of the requirements for Optional Termination
have
been met, including without limitation the deposit required pursuant to the
immediately preceding clause (x) as well as the requirements specified in
Section 9.01(c), then the Trust Administrator shall, on the same Business
Day,
provide written notice to the Terminator and the Swap Provider (in accordance
with the applicable provision of the Interest Rate Swap Agreement) confirming
(a) its receipt of the Termination Price (which shall be based on the Estimated
Swap Termination Payment), and (b) that all other requirements of the Optional
Termination have been met (the “Optional Termination Notice”). Upon the delivery
of the Optional Termination Notice by the Trust Administrator pursuant to
the
preceding sentence, (i) the optional termination shall become irrevocable,
(ii)
the notice to Certificateholders of such optional termination provided pursuant
to Section 9.01(c) shall become unrescindable, (iii) the Swap Provider shall
determine the Swap Termination Payment in accordance with the Interest Rate
Swap
Agreement (which shall not exceed the Estimated Swap Termination Payment),
and
(iv) the Swap Provider shall provide to the Trust Administrator written notice
of the amount of the Swap Termination Payment not later than one (1) Business
Day prior to the final Distribution Date specified in the notices required
pursuant to Sections 9.01(c).
(c) Notice
of
the liquidation of the Certificates shall be given promptly by the Trust
Administrator by letter to Certificateholders, the Swap Provider and the
NIMS
Insurer mailed (a) in the event such notice is given in connection with the
purchase of the Mortgage Loans and each REO Property by the Terminator, not
earlier than the 10th
day and
not later than the 20th
day of
the month next preceding the month of the final distribution on the Certificates
or (b) otherwise during the month of such final distribution on or before
the
Determination Date in such month, in each case specifying (i) the Distribution
Date upon which the Trust Fund will terminate and the final payment in respect
of the REMIC I Regular Interests and the Certificates will be made upon
presentation and surrender of the related Certificates at the office of the
Trust Administrator therein designated, (ii) the amount of any such final
payment, (iii) that no interest shall accrue in respect of the REMIC I Regular
Interests or the Certificates from and after the Accrual Period relating
to the
final Distribution Date therefor and (iv) that the Record Date otherwise
applicable to such Distribution Date is not applicable, payments being made
only
upon presentation and surrender of the Certificates at the office of the
Trust
Administrator. In the event such notice is given in connection with the purchase
of all of the Mortgage Loans and each REO Property remaining in REMIC I by
the
Terminator, the Terminator shall deliver to the Trust Administrator for deposit
in the Distribution Account not later than the last Business Day of the month
next preceding the month of the final distribution on the Certificates an
amount
in immediately available funds equal to the Termination Price. The Trust
Administrator shall remit to the Servicer from such funds deposited in the
Distribution Account (i) any amounts which the Servicer would be permitted
to
withdraw and retain from the Collection Account pursuant to Section 3.11
and
(ii) any other amounts otherwise payable by the Trust Administrator to the
Servicer from amounts on deposit in the Distribution Account pursuant to
the
terms of this Agreement, in each case prior to making any final distributions
pursuant to Section 9.01(d) below. Upon certification to the Trustee and
the
Trust Administrator by the Terminator of the making of such final deposit,
the
Trust Administrator shall promptly release to the Terminator the Mortgage
Files
for the remaining Mortgage Loans, and the Trustee shall execute all assignments,
endorsements and other instruments necessary to effectuate such
transfer.
(d) Upon
presentation of the Certificates by the Certificateholders on the final
Distribution Date, the Trust Administrator shall distribute to each
Certificateholder so presenting and surrendering its Certificates the amount
otherwise distributable on such Distribution Date in accordance with
Section 4.01 in respect of the Certificates so presented and surrendered.
Any funds not distributed to any Holder or Holders of Certificates being
retired
on such Distribution Date because of the failure of such Holder or Holders
to
tender their Certificates shall, on such date, be set aside and held in trust
and credited to the account of the appropriate non-tendering Holder or Holders.
If any Certificates as to which notice has been given pursuant to this
Section 9.01 shall not have been surrendered for cancellation within six
months after the time specified in such notice, the Trust Administrator shall
mail a second notice to the remaining non-tendering Certificateholders to
surrender their Certificates for cancellation in order to receive the final
distribution with respect thereto. If within one year after the second
notice all such Certificates shall not have been surrendered for cancellation,
the Trust Administrator shall, directly or through an agent, mail a final
notice
to the remaining non-tendering Certificateholders concerning surrender of
their
Certificates. The costs and expenses of maintaining the funds in trust and
of
contacting such Certificateholders shall be paid out of the assets remaining
in
the Trust Fund. If within one year after the final notice any such Certificates
shall not have been surrendered for cancellation, the Trust Administrator
shall
pay to UBS Securities LLC all such amounts, and all rights of non-tendering
Certificateholders in or to such amounts shall thereupon cease. No interest
shall accrue or be payable to any Certificateholder on any amount held in
trust
by the Trust Administrator as a result of such Certificateholder’s failure to
surrender its Certificate(s) for final payment thereof in accordance with
this
Section 9.01. Any such amounts held in trust by the Trust Administrator
shall be held in an Eligible Account and the Trust Administrator may direct
any
depository institution maintaining such account to invest the funds in one
or
more Permitted Investments. All income and gain realized from the investment
of
funds deposited in such accounts held in trust by the Trust Administrator
shall
be for the benefit of the Trust Administrator; provided, however, that the
Trust
Administrator shall deposit in such account the amount of any loss of principal
incurred in respect of any such Permitted Investment made with funds in such
accounts immediately upon the realization of such loss.
Immediately
following the deposit of funds in trust hereunder in respect of the
Certificates, the Trust Fund shall terminate.
| SECTION 9.02. |
Additional
Termination Requirements.
|
(a) In
the
event that the Terminator purchases all the Mortgage Loans and each REO Property
or the final payment on or other liquidation of the last Mortgage Loan or
REO
Property remaining in REMIC I pursuant to Section 9.01, the Trust Fund
shall be terminated in accordance with the following additional requirements,
unless the Trust Administrator and the Servicer have received an Opinion
of
Counsel, which Opinion of Counsel shall be at the expense of the Terminator
(or
in connection with a termination resulting from the final payment on or other
liquidation of the last Mortgage Loan or REO Property remaining in REMIC
I,
which Opinion of Counsel shall be at the expense of the person seeking
nonadherence to the following additional requirements but which in no event
shall be at the expense of the Trust Fund or, unless it is the person seeking
nonadherence to the following additional requirements, the Servicer or the
Trust
Administrator), to the effect that the failure of REMIC I to comply with
such
additional requirements of this Section 9.02 will not (A) result in the
imposition on the Trust Fund of taxes on “prohibited transactions,” as described
in Section 860F of the Code, or (B) cause REMIC I to fail to qualify as a
REMIC at any time that any Certificate is outstanding:
(i) The
Trust
Administrator shall specify the first day in the 90-day liquidation period
in a
statement attached to each Trust REMIC’s final Tax Return pursuant to Treasury
regulation Section 1.860F-1 and shall satisfy all requirements of a
qualified liquidation under Section 860F of the Code and any regulations
thereunder, as evidenced by an Opinion of Counsel obtained at the expense
of the
Terminator;
(ii) During
such 90-day liquidation period and, at or prior to the time of making of
the
final payment on the Certificates, the Trustee shall sell all of the assets
of
REMIC I to the Terminator for cash; and
(iii) At
the
time of the making of the final payment on the Certificates, the Trust
Administrator shall distribute or credit, or cause to be distributed or
credited, to the Holders of the Residual Certificates all cash on hand in
the
Trust Fund (other than cash retained to meet claims), and the Trust Fund
shall
terminate at that time.
(b) At
the
expense of the Terminator, the Depositor shall prepare or cause to be prepared
the documentation required in connection with the adoption of a plan of
liquidation of each Trust REMIC pursuant to this Section 9.02.
(c) By
their
acceptance of Certificates, the Holders thereof hereby agree to authorize
the
Trust Administrator to specify the 90-day liquidation period for each Trust
REMIC, which authorization shall be binding upon all successor
Certificateholders.
ARTICLE
X
REMIC
PROVISIONS
| SECTION 10.01. |
REMIC
Administration.
|
(a) The
Trustee shall elect to treat each Trust REMIC as a REMIC under the Code and,
if
necessary, under applicable state law. Each such election will be made by
the
Trustee on Form 1066 or other appropriate federal tax or information return
or
any appropriate state return for the taxable year ending on the last day
of the
calendar year in which the Certificates are issued. For the purposes of the
REMIC election in respect of REMIC I, the REMIC I Regular Interests shall
be
designated as the Regular Interests in REMIC I and the Class R-I Interest
shall
be designated as the Residual Interest in REMIC I. For the purposes of the
REMIC
election in respect of REMIC II, the REMIC II Regular Interests shall be
designated as the Regular Interests in REMIC II and the Class R-II Interest
shall be designated as the Residual Interest in REMIC II. The Class A
Certificates, the Mezzanine Certificates, the Class CE Interest, the Class
P
Interest and the Class Swap-IO Interest shall be designated as the Regular
Interests in REMIC III and the Class R-III Interest shall be designated as
the
Residual Interest in REMIC III. The CE Certificates shall be designated as
the
Regular Interests in REMIC IV and the Class R-IV Interest shall be designated
as
the Residual Interest in REMIC IV. The P Certificates shall be designated
as the
Regular Interests in REMIC V and the Class R-V Interest shall be designated
as
the Residual Interest in REMIC V. REMIC VI Regular Interest SWAP-IO shall
be
designated as the Regular Interests in REMIC VI and the Class R-VI Interest
shall be designated as the Residual Interest in REMIC VI. The Trustee shall
not
permit the creation of any “interests” in any Trust REMIC (within the meaning of
Section 860G of the Code) other than the interests identified above as Regular
Interests or Residual Interests in REMIC I, REMIC II, REMIC III, REMIC IV,
REMIC
V or REMIC VI.
(b) The
Closing Date is hereby designated as the “Startup Day” of each Trust REMIC
within the meaning of Section 860G(a)(9) of the Code.
(c) The
Trust
Administrator shall be reimbursed for any and all expenses relating to any
tax
audit of the Trust Fund (including, but not limited to, any professional
fees or
any administrative or judicial proceedings with respect to any Trust REMIC
that
involve the Internal Revenue Service or state tax authorities), including
the
expense of obtaining any tax related Opinion of Counsel except as specified
herein. The Trust Administrator, as agent for each Trust REMIC’s tax matters
person shall (i) act on behalf of the Trust Fund in relation to any tax matter
or controversy involving any Trust REMIC and (ii) represent the Trust Fund
in
any administrative or judicial proceeding relating to an examination or audit
by
any governmental taxing authority with respect thereto. The holder of the
largest Percentage Interest of the Residual Certificates shall be designated,
in
the manner provided under Treasury Regulations Section 1.860F-4(d) and Treasury
Regulations Section 301.6231(a)(7)-1, as the tax matters person of the related
REMIC created hereunder. By their acceptance thereof, the holder of the largest
Percentage Interest of the Residual Certificates hereby agrees to irrevocably
appoint the Trust Administrator or an Affiliate as its agent to perform all
of
the duties of the tax matters person for the Trust Fund.
(d) The
Trust
Administrator shall prepare, sign and file all of the Tax Returns (including
Form 8811, which must be filed within 30 days following the Closing Date)
in
respect of each Trust REMIC. The expenses of preparing and filing such returns
shall be borne by the Trust Administrator without any right of reimbursement
therefor.
(e) The
Trust
Administrator shall perform on behalf of each Trust REMIC all reporting and
other tax compliance duties that are the responsibility of such REMIC under
the
Code, the REMIC Provisions or other compliance guidance issued by the Internal
Revenue Service or any state or local taxing authority. Among its other duties,
as required by the Code, the REMIC Provisions or other such compliance guidance,
the Trust Administrator shall provide (i) to any Transferor of a Residual
Certificate such information as is necessary for the application of any tax
relating to the transfer of a Residual Certificate to any Person who is not
a
Permitted Transferee, (ii) to the Certificateholders such information or
reports
as are required by the Code or the REMIC Provisions including reports relating
to interest, original issue discount and market discount or premium (using
the
Prepayment Assumption as required) and (iii) to the Internal Revenue Service
the
name, title, address and telephone number of the person who will serve as
the
representative of each Trust REMIC. The Depositor shall provide or cause
to be
provided to the Trust Administrator, within ten (10) days after the Closing
Date, all information or data that the Trust Administrator reasonably determines
to be relevant for tax purposes as to the valuations and issue prices of
the
Certificates, including, without limitation, the price, yield, prepayment
assumption and projected cash flow of the Certificates.
(f) The
Trust
Administrator shall take such action and shall cause each Trust REMIC to
take
such action as shall be necessary to create or maintain the status thereof
as a
REMIC under the REMIC Provisions. Neither the Trust Administrator nor the
Trustee shall take any action or cause the Trust Fund to take any action
or fail
to take (or fail to cause to be taken) any action that, under the REMIC
Provisions, if taken or not taken, as the case may be, could (i) endanger
the
status of any Trust REMIC as a REMIC or (ii) result in the imposition of
a tax
upon the Trust Fund (including but not limited to the tax on prohibited
transactions as defined in Section 860F(a)(2) of the Code and the tax on
contributions to a REMIC set forth in Section 860G(d) of the Code) (either
such event, an “Adverse REMIC Event”) unless the Trustee, the Trust
Administrator and the NIMS Insurer have received an Opinion of Counsel,
addressed to the Trustee, the NIMS Insurer and the Trust Administrator (at
the
expense of the party seeking to take such action but in no event at the expense
of the Trustee or the Trust Administrator) to the effect that the contemplated
action will not, with respect to any Trust REMIC, endanger such status or
result
in the imposition of such a tax, nor shall the Servicer take or fail to take
any
action (whether or not authorized hereunder) as to which the Trustee, the
Trust
Administrator or the NIMS Insurer has advised it in writing that it has received
an Opinion of Counsel to the effect that an Adverse REMIC Event could occur
with
respect to such action; provided that the Servicer may conclusively rely
on such
Opinion of Counsel and shall incur no liability for its action or failure
to act
in accordance with such Opinion of Counsel. In addition, prior to taking
any
action with respect to any Trust REMIC or the respective assets of each,
or
causing any Trust REMIC to take any action, which is not contemplated under
the
terms of this Agreement, the Servicer will consult with the Trustee, the
Trust
Administrator, the Master Servicer, the NIMS Insurer or their respective
designees, in writing, with respect to whether such action could cause an
Adverse REMIC Event to occur with respect to any Trust REMIC and the Servicer
shall not take any such action or cause any Trust REMIC to take any such
action
as to which the Trustee, the Trust Administrator, the Master Servicer or
the
NIMS Insurer has advised it in writing that an Adverse REMIC Event could
occur;
provided that the Servicer may conclusively rely on such writing and shall
incur
no liability for its action or failure to act in accordance with such writing.
The Trustee, the Trust Administrator, the Master Servicer or the NIMS Insurer
may consult with counsel to make such written advice, and the cost of same
shall
be borne by the party seeking to take the action not permitted by this
Agreement, but in no event shall such cost be an expense of the Trustee,
the
Trust Administrator or the Master Servicer. At all times as may be required
by
the Code, the Trust Administrator will ensure that substantially all of the
assets of REMIC I will consist of “qualified mortgages” as defined in
Section 860G(a)(3) of the Code and “permitted investments” as defined in
Section 860G(a)(5) of the Code, to the extent such obligations are within
the Trust Administrator’s control and not otherwise inconsistent with the terms
of this Agreement.
(g) In
the
event that any tax is imposed on “prohibited transactions” of any REMIC created
hereunder as defined in Section 860F(a)(2) of the Code, on the “net income
from foreclosure property” of such REMIC as defined in Section 860G(c) of
the Code, on any contributions to any such REMIC after the Startup Day therefor
pursuant to Section 860G(d) of the Code, or any other tax is imposed by the
Code or any applicable provisions of state or local tax laws, such tax shall
be
charged (i) to the Trust Administrator pursuant to Section 10.03 hereof, if
such tax arises out of or results from a breach by the Trust Administrator
of
any of its obligations under this Article X, (ii) to the Trustee pursuant
to
Section 10.03 hereof, if such tax arises out of or results from a breach by
the Trustee of any of its obligations under this Article X, (iii) to the
Master
Servicer pursuant to Section 10.03 hereof, if such tax arises out of or
results from a breach by the Master Servicer of any of its obligations under
Article III or this Article X, (iv) to the Servicer pursuant to
Section 10.03 hereof, if such tax arises out of or results from a breach by
the Master Servicer of any of its obligations under Article III or this Article
X or (v) against amounts on deposit in the Distribution Account and shall
be
paid by withdrawal therefrom.
(h) [Reserved].
(i) The
Trust
Administrator shall, for federal income tax purposes, maintain books and
records
with respect to each Trust REMIC on a calendar year and on an accrual
basis.
(j) Following
the Startup Day, none of the Servicer, the Master Servicer, the Trust
Administrator or the Trustee shall accept any contributions of assets to
any
Trust REMIC other than in connection with any Qualified Substitute Mortgage
Loan
delivered in accordance with Section 2.03 unless it shall have received an
Opinion of Counsel to the effect that the inclusion of such assets in the
Trust
Fund will not cause the related REMIC to fail to qualify as a REMIC at any
time
that any Certificates are outstanding or subject such REMIC to any tax under
the
REMIC Provisions or other applicable provisions of federal, state and local
law
or ordinances.
(k) None
of
the Trustee, the Trust Administrator, the Servicer or the Master Servicer
shall
enter into any arrangement by which any Trust REMIC will receive a fee or
other
compensation for services nor permit either REMIC to receive any income from
assets other than “qualified mortgages” as defined in Section 860G(a)(3) of
the Code or “permitted investments” as defined in Section 860G(a)(5) of the
Code.
| SECTION 10.02. |
Prohibited
Transactions and Activities.
|
None
of
the Depositor, the Servicer, the Master Servicer, the Trust Administrator
or the
Trustee shall sell, dispose of or substitute for any of the Mortgage Loans
(except in connection with (i) the foreclosure of a Mortgage Loan, including
but
not limited to, the acquisition or sale of a Mortgaged Property acquired
by deed
in lieu of foreclosure, (ii) the bankruptcy of REMIC I, (iii) the termination
of
REMIC I pursuant to Article IX of this Agreement, (iv) a substitution pursuant
to Article II of this Agreement or (v) a purchase of Mortgage Loans pursuant
to
Article II or III of this Agreement), nor acquire any assets for any Trust
REMIC
(other than REO Property acquired in respect of a defaulted Mortgage Loan),
nor
sell or dispose of any investments in the Collection Account or the Distribution
Account for gain, nor accept any contributions to any Trust REMIC after the
Closing Date (other than a Qualified Substitute Mortgage Loan delivered in
accordance with Section 2.03), unless it has received an Opinion of
Counsel, addressed to the Trustee, the Trust Administrator and the NIMS Insurer
(at the expense of the party seeking to cause such sale, disposition,
substitution, acquisition or contribution but in no event at the expense
of the
Trustee or the Trust Administrator) that such sale, disposition, substitution,
acquisition or contribution will not (a) affect adversely the status of any
Trust REMIC as a REMIC or (b) cause any Trust REMIC to be subject to a tax
on
“prohibited transactions” or “contributions” pursuant to the REMIC
Provisions.
| SECTION 10.03. |
Servicer,
Master Servicer and Trustee
Indemnification.
|
(a) In
the
event that any Trust REMIC fails to qualify as a REMIC, loses its status
as a
REMIC, or incurs federal, state or local taxes as a result of a prohibited
transaction or prohibited contribution under the REMIC Provisions due to
(i) the
negligent performance by the Trustee or the Trust Administrator of its duties
and obligations set forth herein or (ii) any state, local or franchise taxes
imposed upon the Trust Fund as a result of the location of the Trustee or
the
Trust Administrator or any co-trustee, the Trustee or the Trust Administrator,
as applicable, shall indemnify the NIMS Insurer, the Servicer, the Master
Servicer and the Trust Fund against any and all Losses resulting from such
negligence, including, without limitation, any reasonable attorneys’ fees
imposed on or incurred as a result of a breach of the Trustee’s or the Trust
Administrator’s, as applicable, or any co-trustee’s covenants; provided,
however,
that
the Trustee or the Trust Administrator, as applicable, shall not be liable
for
any such Losses attributable to the action or inaction of the Servicer, the
Master Servicer, the Depositor or the Holder of such Residual Certificate,
as
applicable, nor for any such Losses resulting from misinformation provided
by
the Holder of such Residual Certificate on which the Trustee or the Trust
Administrator, as applicable, has relied. The foregoing shall not be deemed
to
limit or restrict the rights and remedies of the Holder of such Residual
Certificate now or hereafter existing at law or in equity. Notwithstanding
the
foregoing, however, in no event shall the Trustee or the Trust Administrator,
as
applicable, have any liability (1) for any action or omission that is taken
in
accordance with and in compliance with the express terms of, or which is
expressly permitted by the terms of, this Agreement, (2) for any Losses other
than arising out of a negligent performance by the Trustee or the Trust
Administrator, as applicable, of its duties and obligations set forth herein,
and (3) for any special or consequential damages to Certificateholders (in
addition to payment of principal and interest on the Certificates).
(b) In
the
event that any Trust REMIC fails to qualify as a REMIC, loses its status
as a
REMIC, or incurs federal, state or local taxes as a result of a prohibited
transaction or prohibited contribution under the REMIC Provisions due to
the
negligent performance by the Master Servicer of its duties and obligations
set
forth herein, the Master Servicer shall indemnify the NIMS Insurer, the
Servicer, the Trustee, the Trust Administrator and the Trust Fund against
any
and all losses, claims, damages, liabilities or expenses (“Losses”) resulting
from such negligence, including, without limitation, any reasonable attorneys’
fees imposed on or incurred as a result of a breach of the Master Servicer’s
covenants; provided,
however,
that
the Master Servicer shall not be liable for any such Losses attributable
to the
action or inaction of the Trustee, the Trust Administrator, the Servicer,
the
Depositor or the Holder of such Residual Certificate, as applicable, nor
for any
such Losses resulting from misinformation provided by the Holder of such
Residual Certificate on which the Master Servicer has relied. The foregoing
shall not be deemed to limit or restrict the rights and remedies of the Holder
of such Residual Certificate now or hereafter existing at law or in equity.
Notwithstanding the foregoing, however, in no event shall the Master Servicer
have any liability (1) for any action or omission that is taken in accordance
with and in compliance with the express terms of, or which is expressly
permitted by the terms of, this Agreement, (2) for any Losses other than
arising
out of a negligent performance by the Master Servicer of its duties and
obligations set forth herein, and (3) for any special or consequential damages
to Certificateholders (in addition to payment of principal and interest on
the
Certificates).
(c) In
the
event that any Trust REMIC fails to qualify as a REMIC, loses its status
as a
REMIC, or incurs federal, state or local taxes as a result of a prohibited
transaction or prohibited contribution under the REMIC Provisions due to
(i) the
negligent performance by the Servicer of its duties and obligations set forth
herein or (ii) any state, local or franchise taxes imposed upon the Trust
Fund
as a result of the location of the Servicer or any sub-servicer, the Servicer
shall indemnify the NIMS Insurer, the Master Servicer, the Trustee, the Trust
Administrator and the Trust Fund against any and all losses, claims, damages,
liabilities or expenses (“Losses”) resulting from such negligence, including,
without limitation, any reasonable attorneys’ fees imposed on or incurred as a
result of a breach of the Servicer’s or any sub-servicer’s covenants;
provided,
however,
that
the Servicer shall not be liable for any such Losses attributable to the
action
or inaction of the Master Servicer, the Trustee, the Trust Administrator,
the
Depositor or the Holder of such Residual Certificate, as applicable, nor
for any
such Losses resulting from misinformation provided by the Holder of such
Residual Certificate on which the Servicer has relied. The foregoing shall
not
be deemed to limit or restrict the rights and remedies of the Holder of such
Residual Certificate now or hereafter existing at law or in equity.
Notwithstanding the foregoing, however, in no event shall the Servicer have
any
liability (1) for any action or omission that is taken in accordance with
and in
compliance with the express terms of, or which is expressly permitted by
the
terms of, this Agreement, (2) for any Losses other than arising out of a
negligent performance by the Servicer of its duties and obligations set forth
herein, and (3) for any special or consequential damages to Certificateholders
(in addition to payment of principal and interest on the
Certificates).
ARTICLE
XI
MISCELLANEOUS
PROVISIONS
| SECTION 11.01. |
Amendment.
|
This
Agreement may be amended from time to time by the Depositor, the Servicer,
the
Master Servicer, the Trust Administrator and the Trustee with the consent
of the
NIMS Insurer and without the consent of any of the Certificateholders, (i)
to
cure any ambiguity or defect, (ii) to correct, modify or supplement any
provisions herein (including to give effect to the expectations of
Certificateholders), or (iii) to make any other provisions with respect to
matters or questions arising under this Agreement which shall not be
inconsistent with the provisions of this Agreement, provided that such action
shall not adversely affect in any material respect the interests of any
Certificateholder as evidenced by either (i) an Opinion of Counsel delivered
to
the Servicer, the Master Servicer, the Trustee, the Trust Administrator and
the
NIMS Insurer or (ii) confirmation from the Rating Agencies, delivered to
the
Servicer, the Master Servicer, the Trustee, the Trust Administrator and the
NIMS
Insurer, that such amendment will not result in the reduction or withdrawal
of
the rating of any outstanding Class of Certificates. No amendment shall be
deemed to adversely affect in any material respect the interests of any
Certificateholder who shall have consented thereto, and no Opinion of Counsel
shall be required to address the effect of any such amendment on any such
consenting Certificateholder.
This
Agreement may also be amended from time to time by the Depositor, the Servicer,
the Master Servicer, the Trust Administrator, the NIMS Insurer and the Trustee
with the consent of the NIMS Insurer and the Holders of Certificates entitled
to
at least 66% of the Voting Rights 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 Swap Provider or Holders of
Certificates; provided, however, that no such amendment shall (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, (ii) adversely affect in any material
respect the interests of the Swap Provider or Holders of any Class of
Certificates (as evidenced by either (i) an Opinion of Counsel delivered
to the
Trustee and the NIMS Insurer or (ii) confirmation from the Rating Agencies,
delivered to the Servicer, the Master Servicer, the Trustee and the NIMS
Insurer, that such action will not result in the reduction or withdrawal
of the
rating of any outstanding Class of Certificates) in a manner, other than
as
described in (i), or (iii) modify the consents required by the immediately
preceding clauses (i) and (ii) without the consent of the Holders of all
Certificates then outstanding. Notwithstanding any other provision of this
Agreement, for purposes of the giving or withholding of consents pursuant
to
this Section 11.01, Certificates registered in the name of the Depositor,
the Servicer or the Master Servicer or any Affiliate thereof shall be entitled
to Voting Rights with respect to matters affecting such
Certificates.
Notwithstanding
any contrary provision of this Agreement, none of the Trustee, the Trust
Administrator or the NIMS Insurer shall consent to any amendment to this
Agreement unless it shall have first received an Opinion of Counsel satisfactory
to the NIMS Insurer to the effect that such amendment will not result in
the
imposition of any tax on any Trust REMIC pursuant to the REMIC Provisions
or
cause any Trust REMIC to fail to qualify as a REMIC at any time that any
Certificates are outstanding.
Notwithstanding
any of the other provisions of this Section 11.01, none of the parties to
this
Agreement shall enter into any amendment to this Agreement that could reasonably
be expected to have a material adverse effect on the interests of the Swap
Provider hereunder (excluding, for the avoidance of doubt, any amendment
to this
Agreement that is entered into solely for the purpose of appointing a successor
servicer, trust administrator, trustee or other service provider) without
the
prior written consent of the Swap Provider, which consent shall not be
unreasonably withheld, conditioned or delayed.
Promptly
after the execution of any such amendment the Trust Administrator shall notify
each Certificateholder and make available to each Certificateholder and the
NIMS
Insurer a copy of such amendment.
It
shall
not be necessary for the consent of Certificateholders under this
Section 11.01 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 Certificateholders shall be subject to such reasonable
regulations as the Trust Administrator may prescribe.
The
cost
of any Opinion of Counsel to be delivered pursuant to this Section 11.01
shall be borne by the Person seeking the related amendment, but in no event
shall such Opinion of Counsel be an expense of the Trustee or the Trust
Administrator.
The
Trustee and the Trust Administrator may, but neither shall be obligated to
enter
into any amendment pursuant to this Section that affects its rights, duties
and immunities under this Agreement or otherwise.
| SECTION 11.02. |
Recordation
of Agreement; Counterparts.
|
To
the
extent permitted by applicable law, this Agreement is subject to recordation
in
all appropriate public offices for real property records in all the counties
or
other comparable jurisdictions in which any or all of the properties subject
to
the Mortgages are situated, and in any other appropriate public recording
office
or elsewhere, such recordation to be effected by the Servicer at the expense
of
the Certificateholders, but only upon direction of the Trustee or the Trust
Administrator accompanied by an Opinion of Counsel to the effect that such
recordation materially and beneficially affects the interests of the
Certificateholders.
For
the
purpose of facilitating the recordation of this Agreement as herein provided
and
for other purposes, this Agreement may be executed simultaneously in any
number
of counterparts, each of which counterparts shall be deemed to be an original,
and such counterparts shall constitute but one and the same
instrument.
| SECTION 11.03. |
Limitation
on Rights of Certificateholders.
|
The
death
or incapacity of any Certificateholder shall not operate to terminate this
Agreement or the Trust, nor entitle such Certificateholder’s legal
representatives or heirs to claim an accounting or to take any action or
proceeding in any court for a partition or winding up of the Trust Fund,
nor
otherwise affect the rights, obligations and liabilities of the parties hereto
or any of them.
No
Certificateholder shall have any right to vote (except as expressly provided
for
herein) or in any manner otherwise control the operation and management of
the
Trust, or the obligations of the parties hereto, nor shall anything herein
set
forth, or contained in the terms of any of the Certificates, be construed
so as
to constitute the Certificateholders from time to time as partners or members
of
an association; nor shall any Certificateholder be under any liability to
any
third person by reason of any action taken by the parties to this Agreement
pursuant to any provision hereof.
No
Certificateholder shall have any right by virtue of any provision of this
Agreement to institute any suit, action or proceeding in equity or at law
upon
or under or with respect to this Agreement, unless such Holder previously
shall
have given to the Trustee a written notice of default and of the continuance
thereof, as hereinbefore provided, and unless also the Holders of Certificates
entitled to at least 25% of the Voting Rights shall have made written request
upon the Trustee to institute such action, suit or proceeding in its own
name as
Trustee hereunder and shall have offered to the Trustee such reasonable
indemnity as it may require against the costs, expenses and liabilities to
be
incurred therein or thereby, and the Trustee, for 15 days after its receipt
of
such notice, request and offer of indemnity, shall have neglected or refused
to
institute any such action, suit or proceeding. It is understood and intended,
and expressly covenanted by each Certificateholder with every other
Certificateholder and the Trustee, that no one or more Holders of Certificates
shall have any right in any manner whatsoever by virtue of any provision
of this
Agreement to affect, disturb or prejudice the rights of the Holders of any
other
of such Certificates, or to obtain or seek to obtain priority over or preference
to any other such Holder, or to enforce any right under this Agreement, except
in the manner herein provided and for the equal, ratable and common benefit
of
all Certificateholders. For the protection and enforcement of the provisions
of
this Section, each and every Certificateholder and the Trustee shall be entitled
to such relief as can be given either at law or in equity.
| SECTION 11.04. |
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.
| SECTION 11.05. |
Notices.
|
All
directions, demands and notices hereunder shall be in writing and shall be
deemed to have been duly given when received if personally delivered at or
mailed by first class mail, postage prepaid, or by express delivery service
or
delivered in any other manner specified herein, to (a) in the case of the
Depositor, 0000 Xxxxxx xx xxx Xxxxxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention:
Legal (telecopy number (000) 000-0000), or such other address or telecopy
number
as may hereafter be furnished to the Servicer, the Master Servicer, the Trust
Administrator, the NIMS Insurer and the Trustee in writing by the Depositor,
(b)
in the case of the Servicer, HomEq Servicing, 0000 Xxxx Xxxxxx, Xxxxx Xxxxxxxxx,
Xxxxxxxxxx 00000-0000, Attention: Portfolio Management, Facsimile No. (000)
000-0000 with a copy to HomEq Servicing, 0000 Xxxx Xxxxxxxxx Xxxxxxx, Xxxxx
000,
0xx Xxxxx, Xxxxxxxxx, Xxxxxxxxxx 00000, Attention: Legal Department, Facsimile
No. (000) 000-0000 or such other address or telecopy number as may hereafter
be
furnished to the Trustee, the Trust Administrator, the Master Servicer and
the
Depositor in writing by the Servicer, (c) in the case of the Master Servicer
or
the Trust Administrator, Xxxxx Fargo Bank, N.A., X.X. Xxx 00, Xxxxxxxx, Xxxxxxxx
00000, Attention: Client Manager-MABS 2006-NC3 (telecopy number (000) 000-0000),
with a copy to Xxxxx Fargo Bank, N.A., 0000 Xxx Xxxxxxxxx Xxxx, Xxxxxxxx,
Xxxxxxxx 00000, Attention: Client Manager-MABS 2006-NC3 (telecopy number
(000)
000-0000), with a copy to Xxxxx Fargo Bank, N.A., Xxxxx Xxxxxx xxx Xxxxxxxxx
Xxxxxx, Xxxxxxxxxxx, Xxxxxxxxx 00000, Attention: Client Manager-MABS 2006-NC3,
or such other address or telecopy number as may hereafter be furnished to
the
Servicer, the Trustee, the NIMS Insurer and the Depositor in writing by the
Master Servicer, (d) in the case of the Trustee, 00 Xxxxxxxxxx Xxxxxx,
XX-XX-XX0X, Xx. Xxxx, Xxxxxxxxx 00000, Attention: Structured Finance/MASTR
2006-NC3 (telecopy number (000) 000-0000), or such other address or telecopy
number as may hereafter be furnished to the Depositor, the Servicer, the
NIMS
Insurer, the Trust Administrator and the Master Servicer in writing by the
Trustee, (e) in the case of the Credit Risk Manager, 0000 Xxxxxxx Xxxxxx,
Xxxxx
0000, Xxxxxx, Xxxxxxxx 00000, Attention: General Counsel, or such other address
or telecopy number as may hereafter be furnished to the Depositor, the Servicer,
the Trust Administrator, the Master Servicer, the Trustee and the NIMS Insurer
and (f) in the case of the NIMS Insurer, if any, the address set forth in
the
Indenture, or such other address or telecopy number as may hereafter be
furnished to the Master Servicer, the Trust Administrator, the Depositor
and the
Trustee in writing by the NIMS Insurer. Any notice required or permitted
to be
given to a Certificateholder shall be given by first class mail, postage
prepaid, at the address of such Holder as shown in the Certificate Register.
Any
notice so mailed within the time prescribed in this Agreement shall be
conclusively presumed to have been duly given when mailed, whether or not
the
Certificateholder receives such notice. A copy of any notice required to
be
telecopied hereunder also shall be mailed to the appropriate party in the
manner
set forth above.
| SECTION 11.06. |
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
or of the Certificates or the rights of the Holders thereof.
| SECTION 11.07. |
Notice
to Rating Agencies and the NIMS
Insurer.
|
The
Trust
Administrator shall use its best efforts promptly to provide notice to the
Rating Agencies and the NIMS Insurer with respect to each of the following
of
which it has actual knowledge:
(1) Any
material change or amendment to this Agreement;
(2) The
occurrence of any Servicer Event of Default or Master Servicer Event of Default
that has not been cured or waived;
(3) The
resignation or termination of the Master Servicer, the Trust Administrator
or
the Trustee;
(4) The
repurchase or substitution of Mortgage Loans pursuant to or as contemplated
by
Section 2.03;
(5) The
final
payment to the Holders of any Class of Certificates;
(6) Any
change in the location of the Collection Account or the Distribution
Account;
(7) Any
event
that would result in the inability of the Master Servicer to make advances
regarding delinquent Mortgage Loans to the same extent the Servicer is required
to make such advances as provided in Section 4.03; and
(8) The
filing of any claim under any Servicer’s blanket bond and errors and omissions
insurance policy required by Section 3.14 or the cancellation or material
modification of coverage under any such instrument.
In
addition, the Trust Administrator shall promptly make available to each Rating
Agency and the NIMS Insurer copies of each report to Certificateholders
described in Section 4.02 and the Master Servicer shall promptly make
available to each Rating Agency copies of the following:
(1) Each
annual statement as to compliance described in Section 3.20;
and
(2) Each
annual independent public accountants’ servicing report described in
Section 3.21.
(3) Any
notice delivered pursuant to Section 7.01.
Any
such
notice pursuant to this Section 11.07 shall be in writing and shall be deemed
to
have been duly given if personally delivered at or mailed by first class
mail,
postage prepaid, or by express delivery service to Xxxxx’x Investors Service
Inc., 00 Xxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000 and Standard & Poor’s
Ratings Services, a division of The XxXxxx-Xxxx Companies, Inc., 00 Xxxxx
Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, or such other addresses as the Rating Agencies
may designate in writing to the parties hereto.
| SECTION 11.08. |
Article
and Section References.
|
All
article and section references used in this Agreement, unless otherwise
provided, are to articles and sections in this Agreement.
| SECTION 11.09. |
Grant
of Security Interest.
|
It
is the
express intent of the parties hereto that the conveyance of the Mortgage
Loans
by the Depositor to the Trustee, be, and be construed as, a sale of the Mortgage
Loans by the Depositor and not a pledge of the Mortgage Loans to secure a
debt
or other obligation of the Depositor. However, in the event that,
notwithstanding the aforementioned intent of the parties, the Mortgage Loans
are
held to be property of the Depositor, then, (a) it is the express intent
of the
parties that such conveyance be deemed a pledge of the Mortgage Loans by
the
Depositor to the Trustee to secure a debt or other obligation of the Depositor
and (b)(1) this Agreement shall also be deemed to be a security agreement
within
the meaning of Articles 8 and 9 of the Uniform Commercial Code as in effect
from
time to time in the State of New York; (2) the conveyance provided for in
Section 2.01 hereof shall be deemed to be a grant by the Depositor to the
Trustee of a security interest in all of the Depositor’s right, title and
interest in and to the Mortgage Loans and all amounts payable to the holders
of
the Mortgage Loans and the Swap Provider in accordance with the terms thereof
and all proceeds of the conversion, voluntary or involuntary, of the foregoing
into cash, instruments, securities or other property, including without
limitation all amounts, other than investment earnings, from time to time
held
or invested in the Collection Account and the Distribution Account, whether
in
the form of cash, instruments, securities or other property; (3) the obligations
secured by such security agreement shall be deemed to be all of the Depositor’s
obligations under this Agreement, including the obligation to provide to
the
Certificateholders and the Swap Provider the benefits of this Agreement relating
to the Mortgage Loans and the Trust Fund; and (4) notifications to persons
holding such property, and acknowledgments, receipts or confirmations from
persons holding such property, shall be deemed notifications to, or
acknowledgments, receipts or confirmations from, financial intermediaries,
bailees or agents (as applicable) of the Trustee for the purpose of perfecting
such security interest under applicable law. Accordingly, the Depositor hereby
grants to the Trustee a security interest in the Mortgage Loans and all other
property described in clause (2) of the preceding sentence, for the purpose
of
securing to the Trustee the performance by the Depositor of the obligations
described in clause (3) of the preceding sentence. Notwithstanding the
foregoing, the parties hereto intend the conveyance pursuant to
Section 2.01 to be a true, absolute and unconditional sale of the Mortgage
Loans and assets constituting the Trust Fund by the Depositor to the
Trustee.
| SECTION 11.10. |
Third
Party Rights.
|
Each
of
the NIMS Insurer and the Swap Provider shall be deemed a third-party beneficiary
of this Agreement to the same extent as if it were a party hereto, and shall
have the right to enforce the provisions of this Agreement.
| SECTION 11.11. |
Intention
of the Parties and Interpretation.
|
Each
of
the parties hereto acknowledges and agrees that the purpose of Sections 3.20,
3.21 and 4.06 of this Agreement is to facilitate compliance by the Depositor
with the provisions of Regulation AB promulgated by the SEC under the Exchange
Act (17 C.F.R. §§ 229.1100 - 229.1123), as such may be amended from time to time
and subject to clarification and interpretive advice as may be issued by
the
staff of the Commission from time to time. Therefore, each of the parties
hereto
agrees that (a) the obligations of the parties hereunder shall be interpreted
in
such a manner as to accomplish that purpose, (b) the parties’ obligations
hereunder will be supplemented and modified as reasonably necessary to be
consistent with any such amendments, interpretive advice or guidance, convention
or consensus among active participants in the asset-backed securities markets,
advice of counsel, or otherwise in respect of the requirements of Regulation
AB,
(c) the parties shall comply, to the extent practicable from a timing and
information systems perspective and to the extent that the Depositor will
pay
any increased costs of the Trustee and the Trust Administrator caused by
such
request, with requests made by the Depositor for delivery of additional or
different information as the Depositor may determine in good faith is necessary
to comply with the provisions of Regulation AB, and (d) no amendment of this
Agreement shall be required to effect any such changes in the parties’
obligations as are necessary to accommodate evolving interpretations of the
provisions of Regulation AB.
IN
WITNESS WHEREOF, the Depositor, the Servicer, the Master Servicer, the Trust
Administrator and the Trustee have caused their names to be signed hereto
by
their respective officers thereunto duly authorized, in each case as of the
day
and year first above written.
|
MORTGAGE
ASSET SECURITIZATION TRANSACTIONS, INC.,
|
|
|
as
Depositor
|
|
|
By:
/s/
Xxxxxx Xxxxxxxx
|
|
|
Name:
Xxxxxx Xxxxxxxx
|
|
|
Title:
Director
|
|
|
By:
/s/
Xxxxx XxXxxxxx
|
|
|
Name:
Xxxxx XxXxxxxx
|
|
|
Title:
Executive Director
|
|
|
XXXXX
FARGO BANK, N.A.,
|
|
|
as
Master Servicer and Trust Administrator
|
|
|
By:
/s/
Xxxxxxx Xxxxx Colli
|
|
|
Name:
Xxxxxxx Xxxxx Xxxxx
|
|
|
Title:
Vice President
|
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|
BARCLAYS
CAPITAL REAL ESTATE INC. d/b/a HOMEQ SERVICING,
|
|
|
as
Servicer
|
|
|
By:
/s/
Xxxxx Xxxxxx
|
|
|
Name:
Xxxxx Xxxxxx
|
|
|
Title:
Chief Operating Officer
|
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|
U.S.
BANK NATIONAL ASSOCIATION,
|
|
|
as
Trustee
|
|
|
By:
/s/
Xxxxxxx X. Xxxxx
|
|
|
Name:
Xxxxxxx X. Xxxxx
|
|
|
Title:
Vice President
|
|
For
purposes of Sections 6.08, 6.09 and 6.10:
|
|
|
XXXXXXX
FIXED INCOME SERVICES INC.
|
|
|
By:
/s/
Xxxxx X. Xxxxxxx
|
|
|
Name:
Xxxxx X. Xxxxxxx
|
|
|
Title:
President and General Counsel
|
|
|
STATE
OF NEW YORK
|
)
|
|
)
ss.:
|
|
|
COUNTY
OF NEW YORK
|
)
|
On
the
___ day of December 2006, before me, a notary public in and for said State,
personally appeared ________________________ and ________________________,
known
to me to be a(n) ________________________ and ________________________,
respectively, of Mortgage Asset Securitization Transactions, Inc., one of
the
entities that executed the within instrument, and also known to me to be
the
person who executed it on behalf of said entity, and acknowledged to me that
such entity executed the within instrument.
IN
WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal
the
day and year in this certificate first above written.
|
|
|
|
|
Notary
Public
|
[Notarial
Seal]
|
STATE
OF
|
)
|
|
)
ss.:
|
|
|
COUNTY
OF
|
)
|
On
the
____ day of December 2006, before me, a notary public in and for said State,
personally appeared ________________________ known to me to be a(n)
________________________ of Barclays Capital Real Estate Inc. d/b/a HomEq
Servicing, one of the entities that executed the within instrument, and also
known to me to be the person who executed it on behalf of said entity, and
acknowledged to me that such entity executed the within instrument.
IN
WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal
the
day and year in this certificate first above written.
|
|
|
|
|
Notary
Public
|
[Notarial
Seal]
|
STATE
OF MARYLAND
|
)
|
|
)
ss.:
|
|
|
COUNTY
OF XXXXXX
|
)
|
On
the
____ day of December 2006, before me, a notary public in and for said State,
personally appeared ________________________ known to me to be a(n)
________________________ of Xxxxx Fargo Bank, N.A., one of the entities that
executed the within instrument, and also known to me to be the person who
executed it on behalf of said entity, and acknowledged to me that such entity
executed the within instrument.
IN
WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal
the
day and year in this certificate first above written.
|
|
|
|
|
Notary
Public
|
[Notarial
Seal]
|
STATE
OF MINNESOTA
|
)
|
|
)
ss.:
|
|
|
COUNTY
OF XXXXXX
|
)
|
On
the
____ day of December 2006, before me, a notary public in and for said State,
personally appeared ________________________, known to me to be a(n)
________________________ of U.S. Bank National Association, one of the entities
that executed the within instrument, and also known to me to be the person
who
executed it on behalf of said entity, and acknowledged to me that such entity
executed the within instrument.
IN
WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal
the
day and year in this certificate first above written.
|
|
|
|
|
Notary
Public
|
[Notarial
Seal]
EXHIBIT
A-A-1
FORM
OF
CLASS A-1 CERTIFICATE
UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRUST ADMINISTRATOR OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE
OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
SOLELY
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986
AS
AMENDED (THE “CODE”).
PRIOR
TO
THE TERMINATION OF THE SUPPLEMENTAL INTEREST TRUST, THE HOLDER OF THIS
CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE REPRESENTATION SET FORTH IN SECTION
5.02 (c) OF THE AGREEMENT.
|
Series:
2006-NC3
Pass-Through
Rate: Variable
Cut-off
Date and date of Pooling and Servicing Agreement: December 1,
2006
First
Distribution Date: January 25, 2007
No.
1
|
Aggregate
Certificate Principal Balance of the Class A-1 Certificates as of
the
Issue Date: $ 206,732,000.00
Denomination:
$ 206,732,000.00
Servicer:
Barclays Capital Real Estate Inc. d/b/a HomEq Servicing
Master
Servicer and Trust Administrator: Xxxxx Fargo Bank, N.A.
Custodian:
Deutsche Bank National Trust Comany
Trustee:
U.S. Bank National Association
Issue
Date: December 28, 2006
CUSIP:
00000XXX0
|
DISTRIBUTIONS
IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE MAY BE
MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE
PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE
AS
THE DENOMINATION OF THIS CERTIFICATE.
MORTGAGE
PASS-THROUGH CERTIFICATE
evidencing
a beneficial ownership interest in a portion of a Trust Fund (the “Trust Fund”)
consisting primarily of a pool of conventional one- to four-family, fixed-rate
and adjustable-rate, first and second lien mortgage loans (the “Mortgage Loans”)
formed and sold by
MORTGAGE
ASSET SECURITIZATION TRANSACTIONS, INC.
THIS
CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN MORTGAGE ASSET
SECURITIZATION TRANSACTIONS, INC., THE
MASTER SERVICER, THE TRUST ADMINISTRATOR,
THE
TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR
THE
UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF
THE
UNITED STATES.
This
certifies that Cede & Co. is the registered owner of a Percentage Interest
(obtained by dividing the denomination of this Certificate by the aggregate
Certificate Principal Balance of the Class A-1 Certificates as of the Issue
Date) in that certain beneficial ownership interest evidenced by all the Class
A-1 Certificates in a REMIC created pursuant to a Pooling and Servicing
Agreement, dated as specified above (the “Agreement”), among Mortgage Asset
Securitization Transactions, Inc. (hereinafter called the “Depositor,” which
term includes any successor entity under the Agreement), the Master Servicer,
the Trust Administrator and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is
bound.
Pursuant
to the terms of the Agreement, distributions will be made on the 25th
day of
each month or, if such 25th
day is
not a Business Day, the Business Day immediately following (a “Distribution
Date”), commencing on the First Distribution Date specified above, to the Person
in whose name this Certificate is registered on the Record Date, in an amount
equal to the product of the Percentage Interest evidenced by this Certificate
and the amount required to be distributed to the Holders of Class A-1
Certificates on such Distribution Date pursuant to the Agreement.
All
distributions to the Holder of this Certificate under the Agreement will be
made
or caused to be made by the Trust Administrator by wire transfer in immediately
available funds to the account of the Person entitled thereto if such Person
shall have so notified the Trust Administrator in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and
is
the registered owner of Class A-1 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or
(ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
A-1 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear
on
the Certificate Register. Notwithstanding the above, the final distribution
on
this Certificate will be made after due notice by the Trust Administrator of
the
pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trust Administrator for
that purpose as provided in the Agreement.
The
Pass-Through Rate applicable to the calculation of interest payable with respect
to this Certificate on any Distribution Date shall equal a rate per annum equal
to the lesser of (i) the related Formula Rate for such Distribution Date and
(ii) the related Net WAC Rate for such Distribution Date.
This
Certificate is one of a duly authorized issue of Certificates designated as
Mortgage Pass-Through Certificates of the Series specified on the face hereof
(herein called the “Certificates”) and representing a Percentage Interest in the
Class of Certificates specified on the face hereof equal to the denomination
specified on the face hereof divided by the aggregate Certificate Principal
Balance of the Class of Certificates specified on the face hereof.
The
Certificates are limited in right of payment to certain collections and
recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the Agreement. As provided in the Agreement, withdrawals from
the
Distribution Account may be made from time to time for purposes other than
distributions to Certificateholders, such purposes including reimbursement
of
advances made, or certain expenses incurred, with respect to the Mortgage
Loans.
The
Agreement permits, with certain exceptions therein provided, the amendment
thereof and the modification of the rights and obligations of the Depositor,
the
Master Servicer, the Servicer, the Trust Administrator, the Trustee, the NIMS
Insurer, if any, and the rights of the Certificateholders under the Agreement
at
any time by the Depositor, the Master Servicer, the Servicer, the Trust
Administrator, the Trustee and the NIMS Insurer, if any, without the consent
of
the Certificateholders or with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights as further set forth in the
agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent
is
made upon this Certificate. The Agreement also permits the amendment thereof,
in
certain limited circumstances, without the consent of the Holders of any of
the
Certificates.
As
provided in the Agreement and subject to certain limitations therein set forth,
the transfer of this Certificate is registrable in the Certificate Register
upon
surrender of this Certificate for registration of transfer at the offices or
agencies appointed by the Trust Administrator as provided in the Agreement,
duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trust Administrator duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest
will
be issued to the designated transferee or transferees.
Prior
to
the termination of the supplemental interest trust, the holder of this
certificate shall be deemed to have made the representation set forth in Section
5.02 (c) of the Pooling & Servicing Agreement.
The
Certificates are issuable in fully registered form only without coupons in
Classes and denominations representing Percentage Interests specified in the
Agreement. As provided in the Agreement and subject to certain limitations
therein set forth, the Certificates are exchangeable for new Certificates of
the
same Class in authorized denominations evidencing the same aggregate Percentage
Interest, as requested by the Holder surrendering the same. No service charge
will be made for any such registration of transfer or exchange of Certificates,
but the Trust Administrator may require payment of a sum sufficient to cover
any
tax or other governmental charge that may be imposed in connection with any
transfer or exchange of Certificates.
The
Depositor, the Master Servicer, the Trust Administrator, the Trustee and any
agent of the Depositor, the Master Servicer, the Trust Administrator and the
Trustee may treat the Person in whose name this Certificate is registered as
the
owner hereof for all purposes, and none of the Depositor, the Master Servicer,
the Trust Administrator, the Trustee nor any such agent shall be affected by
notice to the contrary.
The
obligations created by the Agreement and the Trust Fund created thereby shall
terminate upon payment to the Certificateholders of all amounts held by the
Trust Administrator and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of
all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided
in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans and REO Properties remaining in the
Trust Fund at the time of purchase being less than or equal to 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
Date.
The
recitals contained herein shall be taken as statements of the Depositor and
the
Trust Administrator assumes no responsibility for their
correctness.
Unless
the certificate of authentication hereon has been executed by the Trust
Administrator, by manual signature, this Certificate shall not be entitled
to
any benefit under the Agreement or be valid for any purpose.
IN
WITNESS WHEREOF, the Trust Administrator has caused this Certificate to be
duly
executed.
Dated:
December ___, 2006
|
XXXXX
FARGO BANK, N.A., not in its individual capacity, but solely as Trust
Administrator for the MASTR Asset Backed Securities Trust 2006-NC3,
Mortgage Pass-Through Certificates
|
||||||
|
By:
|
||||||
|
Authorized
Officer
|
||||||
CERTIFICATE
OF AUTHENTICATION
This
is
one of the Certificates referred to in the within-mentioned
Agreement.
|
XXXXX
FARGO BANK, N.A.,
as
Trust Administrator
|
|
|
By:
|
|
|
Authorized
Signatory
|
|
ABBREVIATIONS
The
following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
|
TEN
COM -
|
as
tenants in common
|
UNIF
GIFT MIN ACT -
|
Custodian
__________________
(Cust)
(Minor)
under
Uniform Gifts
to
Minors Act
__________________
(State)
|
|
TEN
ENT -
|
as
tenants by the entireties
|
||
|
JT
TEN -
|
as
joint tenants with right
of
survivorship and not as
tenants
in common
|
Additional
abbreviations may also be used though not in the above list.
ASSIGNMENT
FOR
VALUE
RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
|
.
|
(Please
print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I
(we)
further direct the Trust Administrator to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
|
.
|
|
Dated:
|
|
|
Signature
by or on behalf of assignor
|
|
|
Signature
Guaranteed
|
DISTRIBUTION
INSTRUCTIONS
The
assignee should include the following for purposes of distribution:
|
Distributions
shall be made, by wire transfer or otherwise, in immediately available
|
|||||||
|
funds
to
|
|||||||
|
for
the account of
|
|||||||
|
account
number
|
or,
if mailed by check, to
|
||||||
|
Applicable
statements should be mailed to
|
|||||||
|
This
information is provided by
|
|||||||
|
assignee
named above, or
|
|||||||
|
its
agent.
|
|||||||
EXHIBIT
A-A-2
FORM
OF
CLASS A-2 CERTIFICATE
UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRUST ADMINISTRATOR OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE
OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
SOLELY
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986
AS
AMENDED (THE “CODE”).
PRIOR
TO
THE TERMINATION OF THE SUPPLEMENTAL INTEREST TRUST, THE HOLDER OF THIS
CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE REPRESENTATION SET FORTH IN SECTION
5.02 (c) OF THE AGREEMENT.
|
Series:
2006-NC3
Pass-Through
Rate: Variable
Cut-off
Date and date of Pooling and Servicing Agreement: December 1,
2006
First
Distribution Date: January 25, 2007
No.
1
|
Aggregate
Certificate Principal Balance of the Class A-2 Certificates as of
the
Issue Date: $321,800,000.00
Denomination:
$321,800,000.00
Servicer:
Barclays Capital Real Estate Inc. d/b/a HomEq Servicing
Master
Servicer and Trust Administrator: Xxxxx Fargo Bank, N.A.
Custodian:
Deutsche Bank National Trust Company
Trustee:
U.S. Bank National Association
Issue
Date: December 28, 2006
CUSIP:
00000XXX0
|
DISTRIBUTIONS
IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE MAY BE
MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE
PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE
AS
THE DENOMINATION OF THIS CERTIFICATE.
MORTGAGE
PASS-THROUGH CERTIFICATE
evidencing
a beneficial ownership interest in a portion of a Trust Fund (the “Trust Fund”)
consisting primarily of a pool of conventional one- to four-family, fixed-rate
and adjustable-rate, first and second lien mortgage loans (the “Mortgage Loans”)
formed and sold by
MORTGAGE
ASSET SECURITIZATION TRANSACTIONS, INC.
THIS
CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN MORTGAGE ASSET
SECURITIZATION TRANSACTIONS, INC., THE MASTER SERVICER, THE TRUST ADMINISTRATOR,
THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
NOR
THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF
THE UNITED STATES.
This
certifies that Cede & Co. is the registered owner of a Percentage Interest
(obtained by dividing the denomination of this Certificate by the aggregate
Certificate Principal Balance of the Class A-2 Certificates as of the Issue
Date) in that certain beneficial ownership interest evidenced by all the Class
A-2 Certificates in a REMIC created pursuant to a Pooling and Servicing
Agreement, dated as specified above (the “Agreement”), among Mortgage Asset
Securitization Transactions, Inc. (hereinafter called the “Depositor,” which
term includes any successor entity under the Agreement), the Master Servicer,
the Trust Administrator and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is
bound.
Pursuant
to the terms of the Agreement, distributions will be made on the 25th
day of
each month or, if such 25th
day is
not a Business Day, the Business Day immediately following (a “Distribution
Date”), commencing on the First Distribution Date specified above, to the Person
in whose name this Certificate is registered on the Record Date, in an amount
equal to the product of the Percentage Interest evidenced by this Certificate
and the amount required to be distributed to the Holders of Class A-2
Certificates on such Distribution Date pursuant to the Agreement.
All
distributions to the Holder of this Certificate under the Agreement will be
made
or caused to be made by the Trust Administrator by wire transfer in immediately
available funds to the account of the Person entitled thereto if such Person
shall have so notified the Trust Administrator in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and
is
the registered owner of Class A-2 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or
(ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
A-2 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear
on
the Certificate Register. Notwithstanding the above, the final distribution
on
this Certificate will be made after due notice by the Trust Administrator of
the
pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trust Administrator for
that purpose as provided in the Agreement.
The
Pass-Through Rate applicable to the calculation of interest payable with respect
to this Certificate on any Distribution Date shall equal a rate per annum equal
to the lesser of (i) the related Formula Rate for such Distribution Date and
(ii) the related Net WAC Rate for such Distribution Date.
This
Certificate is one of a duly authorized issue of Certificates designated as
Mortgage Pass-Through Certificates of the Series specified on the face hereof
(herein called the “Certificates”) and representing a Percentage Interest in the
Class of Certificates specified on the face hereof equal to the denomination
specified on the face hereof divided by the aggregate Certificate Principal
Balance of the Class of Certificates specified on the face hereof.
The
Certificates are limited in right of payment to certain collections and
recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the Agreement. As provided in the Agreement, withdrawals from
the
Distribution Account may be made from time to time for purposes other than
distributions to Certificateholders, such purposes including reimbursement
of
advances made, or certain expenses incurred, with respect to the Mortgage
Loans.
The
Agreement permits, with certain exceptions therein provided, the amendment
thereof and the modification of the rights and obligations of the Depositor,
the
Master Servicer, the Servicer, the Trust Administrator, the Trustee, the NIMS
Insurer, if any, and the rights of the Certificateholders under the Agreement
at
any time by the Depositor, the Master Servicer, the Servicer, the Trust
Administrator, the Trustee and the NIMS Insurer, if any, without the consent
of
the Certificateholders or with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights as further set forth in the
agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent
is
made upon this Certificate. The Agreement also permits the amendment thereof,
in
certain limited circumstances, without the consent of the Holders of any of
the
Certificates.
As
provided in the Agreement and subject to certain limitations therein set forth,
the transfer of this Certificate is registrable in the Certificate Register
upon
surrender of this Certificate for registration of transfer at the offices or
agencies appointed by the Trust Administrator as provided in the Agreement,
duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trust Administrator duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest
will
be issued to the designated transferee or transferees.
Prior
to
the termination of the supplemental interest trust, the holder of this
certificate shall be deemed to have made the representation set forth in Section
5.02 (c) of the Pooling & Servicing Agreement.
The
Certificates are issuable in fully registered form only without coupons in
Classes and denominations representing Percentage Interests specified in the
Agreement. As provided in the Agreement and subject to certain limitations
therein set forth, the Certificates are exchangeable for new Certificates of
the
same Class in authorized denominations evidencing the same aggregate Percentage
Interest, as requested by the Holder surrendering the same. No service charge
will be made for any such registration of transfer or exchange of Certificates,
but the Trust Administrator may require payment of a sum sufficient to cover
any
tax or other governmental charge that may be imposed in connection with any
transfer or exchange of Certificates.
The
Depositor, the Master Servicer, the Trust Administrator, the Trustee and any
agent of the Depositor, the Master Servicer, the Trust Administrator or the
Trustee may treat the Person in whose name this Certificate is registered as
the
owner hereof for all purposes, and none of the Depositor, the Master Servicer,
the Trust Administrator, the Trustee nor any such agent shall be affected by
notice to the contrary.
The
obligations created by the Agreement and the Trust Fund created thereby shall
terminate upon payment to the Certificateholders of all amounts held by the
Trust Administrator and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of
all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided
in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans and REO Properties remaining in the
Trust Fund at the time of purchase being less than or equal to 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
Date.
The
recitals contained herein shall be taken as statements of the Depositor and
the
Trust Administrator assumes no responsibility for their
correctness.
Unless
the certificate of authentication hereon has been executed by the Trust
Administrator, by manual signature, this Certificate shall not be entitled
to
any benefit under the Agreement or be valid for any purpose.
IN
WITNESS WHEREOF, the Trust Administrator has caused this Certificate to be
duly
executed.
Dated:
December ___, 2006
|
XXXXX
FARGO BANK, N.A., not in its individual capacity, but solely as Trust
Administrator for the MASTR Asset Backed Securities Trust 2006-NC3,
Mortgage Pass-Through Certificates
|
||||||
|
By:
|
||||||
|
Authorized
Officer
|
||||||
CERTIFICATE
OF AUTHENTICATION
This
is
one of the Certificates referred to in the within-mentioned
Agreement.
|
XXXXX
FARGO BANK, N.A.,
as
Trust Administrator
|
|
|
By:
|
|
|
Authorized
Signatory
|
|
ABBREVIATIONS
The
following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
|
TEN
COM -
|
as
tenants in common
|
UNIF
GIFT MIN ACT -
|
Custodian
__________________
(Cust)
(Minor)
under
Uniform Gifts
to
Minors Act
__________________
(State)
|
|
TEN
ENT -
|
as
tenants by the entireties
|
||
|
JT
TEN -
|
as
joint tenants with right
of
survivorship and not as
tenants
in common
|
Additional
abbreviations may also be used though not in the above list.
ASSIGNMENT
FOR
VALUE
RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
|
.
|
(Please
print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I
(we)
further direct the Trust Administrator to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
|
.
|
|
Dated:
|
|
|
Signature
by or on behalf of assignor
|
|
|
Signature
Guaranteed
|
DISTRIBUTION
INSTRUCTIONS
The
assignee should include the following for purposes of distribution:
|
Distributions
shall be made, by wire transfer or otherwise, in immediately available
|
|||||||
|
funds
to
|
|||||||
|
for
the account of
|
|||||||
|
account
number
|
or,
if mailed by check, to
|
||||||
|
Applicable
statements should be mailed to
|
|||||||
|
This
information is provided by
|
|||||||
|
assignee
named above, or
|
|||||||
|
its
agent.
|
|||||||
EXHIBIT
A-A-3
FORM
OF
CLASS A-3 CERTIFICATE
UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRUST ADMINISTRATOR OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE
OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
SOLELY
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986
AS
AMENDED (THE “CODE”).
PRIOR
TO
THE TERMINATION OF THE SUPPLEMENTAL INTEREST TRUST, THE HOLDER OF THIS
CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE REPRESENTATION SET FORTH IN SECTION
5.02 (c) OF THE AGREEMENT.
|
Series:
2006-NC3
Pass-Through
Rate: Variable
Cut-off
Date and date of Pooling and Servicing Agreement: December 1,
2006
First
Distribution Date: January 25, 2007
No.
1
|
Aggregate
Certificate Principal Balance of the Class A-3 Certificates as of
the
Issue Date: $78,400,000.00
Denomination:
$78,400,000.00
Servicer:
Barclays Capital Real Estate Inc. d/b/a HomEq Servicing
Master
Servicer and Trust Administrator: Xxxxx Fargo Bank, N.A.
Custodian:
Deutsche Bank National Trust Company
Trustee:
U.S. Bank National Association
Issue
Date: December 28, 2006
CUSIP:
00000XXX0
|
DISTRIBUTIONS
IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE MAY BE
MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE
PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE
AS
THE DENOMINATION OF THIS CERTIFICATE.
MORTGAGE
PASS-THROUGH CERTIFICATE
evidencing
a beneficial ownership interest in a portion of a Trust Fund (the “Trust Fund”)
consisting primarily of a pool of conventional one- to four-family, fixed-rate
and adjustable-rate, first and second lien mortgage loans (the “Mortgage Loans”)
formed and sold by
MORTGAGE
ASSET SECURITIZATION TRANSACTIONS, INC.
THIS
CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN MORTGAGE ASSET
SECURITIZATION TRANSACTIONS, INC., THE MASTER SERVICER, THE TRUST ADMINISTRATOR,
THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
NOR
THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF
THE UNITED STATES.
This
certifies that Cede & Co. is the registered owner of a Percentage Interest
(obtained by dividing the denomination of this Certificate by the aggregate
Certificate Principal Balance of the Class A-3 Certificates as of the Issue
Date) in that certain beneficial ownership interest evidenced by all the Class
A-3 Certificates in a REMIC created pursuant to a Pooling and Servicing
Agreement, dated as specified above (the “Agreement”), among Mortgage Asset
Securitization Transactions, Inc. (hereinafter called the “Depositor,” which
term includes any successor entity under the Agreement), the Master Servicer,
the Trust Administrator and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is
bound.
Pursuant
to the terms of the Agreement, distributions will be made on the 25th
day of
each month or, if such 25th
day is
not a Business Day, the Business Day immediately following (a “Distribution
Date”), commencing on the First Distribution Date specified above, to the Person
in whose name this Certificate is registered on the Record Date, in an amount
equal to the product of the Percentage Interest evidenced by this Certificate
and the amount required to be distributed to the Holders of Class A-3
Certificates on such Distribution Date pursuant to the Agreement.
All
distributions to the Holder of this Certificate under the Agreement will be
made
or caused to be made by the Trust Administrator by wire transfer in immediately
available funds to the account of the Person entitled thereto if such Person
shall have so notified the Trust Administrator in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and
is
the registered owner of Class A-3 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or
(ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
A-3 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear
on
the Certificate Register. Notwithstanding the above, the final distribution
on
this Certificate will be made after due notice by the Trust Administrator of
the
pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trust Administrator for
that purpose as provided in the Agreement.
The
Pass-Through Rate applicable to the calculation of interest payable with respect
to this Certificate on any Distribution Date shall equal a rate per annum equal
to the lesser of (i) the related Formula Rate for such Distribution Date and
(ii) the related Net WAC Rate for such Distribution Date.
This
Certificate is one of a duly authorized issue of Certificates designated as
Mortgage Pass-Through Certificates of the Series specified on the face hereof
(herein called the “Certificates”) and representing a Percentage Interest in the
Class of Certificates specified on the face hereof equal to the denomination
specified on the face hereof divided by the aggregate Certificate Principal
Balance of the Class of Certificates specified on the face hereof.
The
Certificates are limited in right of payment to certain collections and
recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the Agreement. As provided in the Agreement, withdrawals from
the
Distribution Account may be made from time to time for purposes other than
distributions to Certificateholders, such purposes including reimbursement
of
advances made, or certain expenses incurred, with respect to the Mortgage
Loans.
The
Agreement permits, with certain exceptions therein provided, the amendment
thereof and the modification of the rights and obligations of the Depositor,
the
Master Servicer, the Servicer, the Trust Administrator, the Trustee, the NIMS
Insurer, if any, and the rights of the Certificateholders under the Agreement
at
any time by the Depositor, the Master Servicer, the Servicer, the Trust
Administrator, the Trustee and the NIMS Insurer, if any, without the consent
of
the Certificateholders or with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights as further set forth in the
agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent
is
made upon this Certificate. The Agreement also permits the amendment thereof,
in
certain limited circumstances, without the consent of the Holders of any of
the
Certificates.
As
provided in the Agreement and subject to certain limitations therein set forth,
the transfer of this Certificate is registrable in the Certificate Register
upon
surrender of this Certificate for registration of transfer at the offices or
agencies appointed by the Trust Administrator as provided in the Agreement,
duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trust Administrator duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest
will
be issued to the designated transferee or transferees.
Prior
to
the termination of the supplemental interest trust, the holder of this
certificate shall be deemed to have made the representation set forth in Section
5.02 (c) of the Pooling & Servicing Agreement.
The
Certificates are issuable in fully registered form only without coupons in
Classes and denominations representing Percentage Interests specified in the
Agreement. As provided in the Agreement and subject to certain limitations
therein set forth, the Certificates are exchangeable for new Certificates of
the
same Class in authorized denominations evidencing the same aggregate Percentage
Interest, as requested by the Holder surrendering the same. No service charge
will be made for any such registration of transfer or exchange of Certificates,
but the Trust Administrator may require payment of a sum sufficient to cover
any
tax or other governmental charge that may be imposed in connection with any
transfer or exchange of Certificates.
The
Depositor, the Master Servicer, the Trust Administrator, the Trustee and any
agent of the Depositor, the Master Servicer, the Trust Administrator or the
Trustee may treat the Person in whose name this Certificate is registered as
the
owner hereof for all purposes, and none of the Depositor, the Master Servicer,
the Trust Administrator, the Trustee nor any such agent shall be affected by
notice to the contrary.
The
obligations created by the Agreement and the Trust Fund created thereby shall
terminate upon payment to the Certificateholders of all amounts held by the
Trust Administrator and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of
all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided
in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans and REO Properties remaining in the
Trust Fund at the time of purchase being less than or equal to 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
Date.
The
recitals contained herein shall be taken as statements of the Depositor and
the
Trust Administrator assumes no responsibility for their
correctness.
Unless
the certificate of authentication hereon has been executed by the Trust
Administrator, by manual signature, this Certificate shall not be entitled
to
any benefit under the Agreement or be valid for any purpose.
IN
WITNESS WHEREOF, the Trust Administrator has caused this Certificate to be
duly
executed.
Dated:
December ___, 2006
|
XXXXX
FARGO BANK, N.A., not in its individual capacity, but solely as Trust
Administrator for the MASTR Asset Backed Securities Trust 2006-NC3,
Mortgage Pass-Through Certificates
|
||||||
|
By:
|
||||||
|
Authorized
Officer
|
||||||
CERTIFICATE
OF AUTHENTICATION
This
is
one of the Certificates referred to in the within-mentioned
Agreement.
|
XXXXX
FARGO BANK, N.A.,
as
Trust Administrator
|
|
|
By:
|
|
|
Authorized
Signatory
|
|
ABBREVIATIONS
The
following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
|
TEN
COM -
|
as
tenants in common
|
UNIF
GIFT MIN ACT -
|
Custodian
__________________
(Cust)
(Minor)
under
Uniform Gifts
to
Minors Act
__________________
(State)
|
|
TEN
ENT -
|
as
tenants by the entireties
|
||
|
JT
TEN -
|
as
joint tenants with right
of
survivorship and not as
tenants
in common
|
Additional
abbreviations may also be used though not in the above list.
ASSIGNMENT
FOR
VALUE
RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
_________________________________________________________________
|
.
|
(Please
print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I
(we)
further direct the Trust Administrator to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
|
.
|
|
Dated:
|
|
|
Signature
by or on behalf of assignor
|
|
|
Signature
Guaranteed
|
DISTRIBUTION
INSTRUCTIONS
The
assignee should include the following for purposes of distribution:
|
Distributions
shall be made, by wire transfer or otherwise, in immediately available
|
|||||||
|
funds
to
|
|||||||
|
for
the account of
|
|||||||
|
account
number
|
or,
if mailed by check, to
|
||||||
|
Applicable
statements should be mailed to
|
|||||||
|
This
information is provided by
|
|||||||
|
assignee
named above, or
|
|||||||
|
its
agent.
|
|||||||
EXHIBIT
A-A-4
FORM
OF
CLASS A-4 CERTIFICATE
UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRUST ADMINISTRATOR OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE
OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
SOLELY
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986
AS
AMENDED (THE “CODE”).
PRIOR
TO
THE TERMINATION OF THE SUPPLEMENTAL INTEREST TRUST, THE HOLDER OF THIS
CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE REPRESENTATION SET FORTH IN SECTION
5.02 (c) OF THE AGREEMENT.
|
Series:
2006-NC3
Pass-Through
Rate: Variable
Cut-off
Date and date of Pooling and Servicing Agreement: December 1,
2006
First
Distribution Date: January 25, 2007
No.
1
|
Aggregate
Certificate Principal Balance of the Class A-4 Certificates as of
the
Issue Date: $133,300,000.00
Denomination:
$133,300,000.00
Servicer:
Barclays Capital Real Estate Inc. d/b/a HomEq Servicing
Master
Servicer and Trust Administrator: Xxxxx Fargo Bank, N.A.
Custodian:
Deustche Bank National Trust Company
Trustee:
U.S. Bank National Association
Issue
Date: December 28, 2006
CUSIP:
00000XXX0
|
DISTRIBUTIONS
IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE MAY BE
MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE
PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE
AS
THE DENOMINATION OF THIS CERTIFICATE.
MORTGAGE
PASS-THROUGH CERTIFICATE
evidencing
a beneficial ownership interest in a portion of a Trust Fund (the “Trust Fund”)
consisting primarily of a pool of conventional one- to four-family, fixed-rate
and adjustable-rate, first and second lien mortgage loans (the “Mortgage Loans”)
formed and sold by
MORTGAGE
ASSET SECURITIZATION TRANSACTIONS, INC.
THIS
CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN MORTGAGE ASSET
SECURITIZATION TRANSACTIONS, INC., THE MASTER SERVICER, THE TRUST ADMINISTRATOR,
THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
NOR
THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF
THE UNITED STATES.
This
certifies that Cede & Co. is the registered owner of a Percentage Interest
(obtained by dividing the denomination of this Certificate by the aggregate
Certificate Principal Balance of the Class A-4 Certificates as of the Issue
Date) in that certain beneficial ownership interest evidenced by all the Class
A-4 Certificates in a REMIC created pursuant to a Pooling and Servicing
Agreement, dated as specified above (the “Agreement”), among Mortgage Asset
Securitization Transactions, Inc. (hereinafter called the “Depositor,” which
term includes any successor entity under the Agreement), the Master Servicer,
the Trust Administrator and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is
bound.
Pursuant
to the terms of the Agreement, distributions will be made on the 25th
day of
each month or, if such 25th
day is
not a Business Day, the Business Day immediately following (a “Distribution
Date”), commencing on the First Distribution Date specified above, to the Person
in whose name this Certificate is registered on the Record Date, in an amount
equal to the product of the Percentage Interest evidenced by this Certificate
and the amount required to be distributed to the Holders of Class A-4
Certificates on such Distribution Date pursuant to the Agreement.
All
distributions to the Holder of this Certificate under the Agreement will be
made
or caused to be made by the Trust Administrator by wire transfer in immediately
available funds to the account of the Person entitled thereto if such Person
shall have so notified the Trust Administrator in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and
is
the registered owner of Class A-4 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or
(ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
A-4 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear
on
the Certificate Register. Notwithstanding the above, the final distribution
on
this Certificate will be made after due notice by the Trust Administrator of
the
pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trust Administrator for
that purpose as provided in the Agreement.
The
Pass-Through Rate applicable to the calculation of interest payable with respect
to this Certificate on any Distribution Date shall equal a rate per annum equal
to the lesser of (i) the related Formula Rate for such Distribution Date and
(ii) the related Net WAC Rate for such Distribution Date.
This
Certificate is one of a duly authorized issue of Certificates designated as
Mortgage Pass-Through Certificates of the Series specified on the face hereof
(herein called the “Certificates”) and representing a Percentage Interest in the
Class of Certificates specified on the face hereof equal to the denomination
specified on the face hereof divided by the aggregate Certificate Principal
Balance of the Class of Certificates specified on the face hereof.
The
Certificates are limited in right of payment to certain collections and
recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the Agreement. As provided in the Agreement, withdrawals from
the
Distribution Account may be made from time to time for purposes other than
distributions to Certificateholders, such purposes including reimbursement
of
advances made, or certain expenses incurred, with respect to the Mortgage
Loans.
The
Agreement permits, with certain exceptions therein provided, the amendment
thereof and the modification of the rights and obligations of the Depositor,
the
Master Servicer, the Servicer, the Trust Administrator, the Trustee, the NIMS
Insurer, if any, and the rights of the Certificateholders under the Agreement
at
any time by the Depositor, the Master Servicer, the Servicer, the Trust
Administrator, the Trustee and the NIMS Insurer, if any, without the consent
of
the Certificateholders or with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights as further set forth in the
agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent
is
made upon this Certificate. The Agreement also permits the amendment thereof,
in
certain limited circumstances, without the consent of the Holders of any of
the
Certificates.
As
provided in the Agreement and subject to certain limitations therein set forth,
the transfer of this Certificate is registrable in the Certificate Register
upon
surrender of this Certificate for registration of transfer at the offices or
agencies appointed by the Trust Administrator as provided in the Agreement,
duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trust Administrator duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest
will
be issued to the designated transferee or transferees.
Prior
to
the termination of the supplemental interest trust, the holder of this
certificate shall be deemed to have made the representation set forth in Section
5.02 (c) of the Pooling & Servicing Agreement.
The
Certificates are issuable in fully registered form only without coupons in
Classes and denominations representing Percentage Interests specified in the
Agreement. As provided in the Agreement and subject to certain limitations
therein set forth, the Certificates are exchangeable for new Certificates of
the
same Class in authorized denominations evidencing the same aggregate Percentage
Interest, as requested by the Holder surrendering the same. No service charge
will be made for any such registration of transfer or exchange of Certificates,
but the Trust Administrator may require payment of a sum sufficient to cover
any
tax or other governmental charge that may be imposed in connection with any
transfer or exchange of Certificates.
The
Depositor, the Master Servicer, the Trust Administrator, the Trustee and any
agent of the Depositor, the Master Servicer, the Trust Administrator or the
Trustee may treat the Person in whose name this Certificate is registered as
the
owner hereof for all purposes, and none of the Depositor, the Master Servicer,
the Trust Administrator, the Trustee nor any such agent shall be affected by
notice to the contrary.
The
obligations created by the Agreement and the Trust Fund created thereby shall
terminate upon payment to the Certificateholders of all amounts held by the
Trust Administrator and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of
all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided
in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans and REO Properties remaining in the
Trust Fund at the time of purchase being less than or equal to 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
Date.
The
recitals contained herein shall be taken as statements of the Depositor and
the
Trust Administrator assumes no responsibility for their
correctness.
Unless
the certificate of authentication hereon has been executed by the Trust
Administrator, by manual signature, this Certificate shall not be entitled
to
any benefit under the Agreement or be valid for any purpose.
IN
WITNESS WHEREOF, the Trust Administrator has caused this Certificate to be
duly
executed.
Dated:
December ___, 2006
|
XXXXX
FARGO BANK, N.A., not in its individual capacity, but solely as Trust
Administrator for the MASTR Asset Backed Securities Trust 2006-NC3,
Mortgage Pass-Through Certificates
|
||||||
|
By:
|
||||||
|
Authorized
Officer
|
||||||
CERTIFICATE
OF AUTHENTICATION
This
is
one of the Certificates referred to in the within-mentioned
Agreement.
|
XXXXX
FARGO BANK, N.A.,
as
Trust Administrator
|
|
|
By:
|
|
|
Authorized
Signatory
|
|
ABBREVIATIONS
The
following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
|
TEN
COM -
|
as
tenants in common
|
UNIF
GIFT MIN ACT -
|
Custodian
__________________
(Cust)
(Minor)
under
Uniform Gifts
to
Minors Act
__________________
(State)
|
|
TEN
ENT -
|
as
tenants by the entireties
|
||
|
JT
TEN -
|
as
joint tenants with right
of
survivorship and not as
tenants
in common
|
Additional
abbreviations may also be used though not in the above list.
ASSIGNMENT
FOR
VALUE
RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
|
.
|
(Please
print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I
(we)
further direct the Trust Administrator to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
|
.
|
|
Dated:
|
|
|
Signature
by or on behalf of assignor
|
|
|
Signature
Guaranteed
|
DISTRIBUTION
INSTRUCTIONS
The
assignee should include the following for purposes of distribution:
|
Distributions
shall be made, by wire transfer or otherwise, in immediately available
|
|||||||
|
funds
to
|
|||||||
|
for
the account of
|
|||||||
|
account
number
|
or,
if mailed by check, to
|
||||||
|
Applicable
statements should be mailed to
|
|||||||
|
This
information is provided by
|
|||||||
|
assignee
named above, or
|
|||||||
|
its
agent.
|
|||||||
EXHIBIT
A-A-5
FORM
OF
CLASS A-5 CERTIFICATE
UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRUST ADMINISTRATOR OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE
OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
SOLELY
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986
AS
AMENDED (THE “CODE”).
PRIOR
TO
THE TERMINATION OF THE SUPPLEMENTAL INTEREST TRUST, THE HOLDER OF THIS
CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE REPRESENTATION SET FORTH IN SECTION
5.02 (c) OF THE AGREEMENT.
|
Series:
2006-NC3
Pass-Through
Rate: Variable
Cut-off
Date and date of Pooling and Servicing Agreement: December 1,
2006
First
Distribution Date: January 25, 2007
No.
1
|
Aggregate
Certificate Principal Balance of the Class A-5 Certificates as of
the
Issue Date: $52,105,000.00
Denomination:
$52,105,000.00
Servicer:
Barclays Capital Real Estate Inc. d/b/a HomEq Servicing
Master
Servicer and Trust Administrator: Xxxxx Fargo Bank, N.A.
Custodian:
Deutsche Bank National Trust Company
Trustee:
U.S. Bank National Association
Issue
Date: December 28, 2006
CUSIP:
00000XXX0
|
DISTRIBUTIONS
IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE MAY BE
MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE
PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE
AS
THE DENOMINATION OF THIS CERTIFICATE.
MORTGAGE
PASS-THROUGH CERTIFICATE
evidencing
a beneficial ownership interest in a portion of a Trust Fund (the “Trust Fund”)
consisting primarily of a pool of conventional one- to four-family, fixed-rate
and adjustable-rate, first and second lien mortgage loans (the “Mortgage Loans”)
formed and sold by
MORTGAGE
ASSET SECURITIZATION TRANSACTIONS, INC.
THIS
CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN MORTGAGE ASSET
SECURITIZATION TRANSACTIONS, INC., THE MASTER SERVICER, THE TRUST ADMINISTRATOR,
THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
NOR
THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF
THE UNITED STATES.
This
certifies that Cede & Co. is the registered owner of a Percentage Interest
(obtained by dividing the denomination of this Certificate by the aggregate
Certificate Principal Balance of the Class A-5 Certificates as of the Issue
Date) in that certain beneficial ownership interest evidenced by all the Class
A-5 Certificates in a REMIC created pursuant to a Pooling and Servicing
Agreement, dated as specified above (the “Agreement”), among Mortgage Asset
Securitization Transactions, Inc. (hereinafter called the “Depositor,” which
term includes any successor entity under the Agreement), the Master Servicer,
the Trust Administrator and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is
bound.
Pursuant
to the terms of the Agreement, distributions will be made on the 25th
day of
each month or, if such 25th
day is
not a Business Day, the Business Day immediately following (a “Distribution
Date”), commencing on the First Distribution Date specified above, to the Person
in whose name this Certificate is registered on the Record Date, in an amount
equal to the product of the Percentage Interest evidenced by this Certificate
and the amount required to be distributed to the Holders of Class A-5
Certificates on such Distribution Date pursuant to the Agreement.
All
distributions to the Holder of this Certificate under the Agreement will be
made
or caused to be made by the Trust Administrator by wire transfer in immediately
available funds to the account of the Person entitled thereto if such Person
shall have so notified the Trust Administrator in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and
is
the registered owner of Class A-5 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or
(ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
A-5 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear
on
the Certificate Register. Notwithstanding the above, the final distribution
on
this Certificate will be made after due notice by the Trust Administrator of
the
pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trust Administrator for
that purpose as provided in the Agreement.
The
Pass-Through Rate applicable to the calculation of interest payable with respect
to this Certificate on any Distribution Date shall equal a rate per annum equal
to the lesser of (i) the related Formula Rate for such Distribution Date and
(ii) the related Net WAC Rate for such Distribution Date.
This
Certificate is one of a duly authorized issue of Certificates designated as
Mortgage Pass-Through Certificates of the Series specified on the face hereof
(herein called the “Certificates”) and representing a Percentage Interest in the
Class of Certificates specified on the face hereof equal to the denomination
specified on the face hereof divided by the aggregate Certificate Principal
Balance of the Class of Certificates specified on the face hereof.
The
Certificates are limited in right of payment to certain collections and
recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the Agreement. As provided in the Agreement, withdrawals from
the
Distribution Account may be made from time to time for purposes other than
distributions to Certificateholders, such purposes including reimbursement
of
advances made, or certain expenses incurred, with respect to the Mortgage
Loans.
The
Agreement permits, with certain exceptions therein provided, the amendment
thereof and the modification of the rights and obligations of the Depositor,
the
Master Servicer, the Servicer, the Trust Administrator, the Trustee, the NIMS
Insurer, if any, and the rights of the Certificateholders under the Agreement
at
any time by the Depositor, the Master Servicer, the Servicer, the Trust
Administrator, the Trustee and the NIMS Insurer, if any, without the consent
of
the Certificateholders or with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights as further set forth in the
agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent
is
made upon this Certificate. The Agreement also permits the amendment thereof,
in
certain limited circumstances, without the consent of the Holders of any of
the
Certificates.
As
provided in the Agreement and subject to certain limitations therein set forth,
the transfer of this Certificate is registrable in the Certificate Register
upon
surrender of this Certificate for registration of transfer at the offices or
agencies appointed by the Trust Administrator as provided in the Agreement,
duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trust Administrator duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest
will
be issued to the designated transferee or transferees.
Prior
to
the termination of the supplemental interest trust, the holder of this
certificate shall be deemed to have made the representation set forth in Section
5.02 (c) of the Pooling & Servicing Agreement.
The
Certificates are issuable in fully registered form only without coupons in
Classes and denominations representing Percentage Interests specified in the
Agreement. As provided in the Agreement and subject to certain limitations
therein set forth, the Certificates are exchangeable for new Certificates of
the
same Class in authorized denominations evidencing the same aggregate Percentage
Interest, as requested by the Holder surrendering the same. No service charge
will be made for any such registration of transfer or exchange of Certificates,
but the Trust Administrator may require payment of a sum sufficient to cover
any
tax or other governmental charge that may be imposed in connection with any
transfer or exchange of Certificates.
The
Depositor, the Master Servicer, the Trust Administrator, the Trustee and any
agent of the Depositor, the Master Servicer, the Trust Administrator or the
Trustee may treat the Person in whose name this Certificate is registered as
the
owner hereof for all purposes, and none of the Depositor, the Master Servicer,
the Trust Administrator, the Trustee nor any such agent shall be affected by
notice to the contrary.
The
obligations created by the Agreement and the Trust Fund created thereby shall
terminate upon payment to the Certificateholders of all amounts held by the
Trust Administrator and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of
all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided
in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans and REO Properties remaining in the
Trust Fund at the time of purchase being less than or equal to 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
Date.
The
recitals contained herein shall be taken as statements of the Depositor and
the
Trust Administrator assumes no responsibility for their
correctness.
Unless
the certificate of authentication hereon has been executed by the Trust
Administrator, by manual signature, this Certificate shall not be entitled
to
any benefit under the Agreement or be valid for any purpose.
IN
WITNESS WHEREOF, the Trust Administrator has caused this Certificate to be
duly
executed.
Dated:
December ___, 2006
|
XXXXX
FARGO BANK, N.A., not in its individual capacity, but solely as Trust
Administrator for the MASTR Asset Backed Securities Trust 2006-NC3,
Mortgage Pass-Through Certificates
|
||||||
|
By:
|
||||||
|
Authorized
Officer
|
||||||
CERTIFICATE
OF AUTHENTICATION
This
is
one of the Certificates referred to in the within-mentioned
Agreement.
|
XXXXX
FARGO BANK, N.A.,
as
Trust Administrator
|
|
|
By:
|
|
|
Authorized
Signatory
|
|
ABBREVIATIONS
The
following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
|
TEN
COM -
|
as
tenants in common
|
UNIF
GIFT MIN ACT -
|
Custodian
__________________
(Cust)
(Minor)
under
Uniform Gifts
to
Minors Act
__________________
(State)
|
|
TEN
ENT -
|
as
tenants by the entireties
|
||
|
JT
TEN -
|
as
joint tenants with right
of
survivorship and not as
tenants
in common
|
Additional
abbreviations may also be used though not in the above list.
ASSIGNMENT
FOR
VALUE
RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
|
.
|
(Please
print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I
(we)
further direct the Trust Administrator to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
|
.
|
|
Dated:
|
|
|
Signature
by or on behalf of assignor
|
|
|
Signature
Guaranteed
|
DISTRIBUTION
INSTRUCTIONS
The
assignee should include the following for purposes of distribution:
|
Distributions
shall be made, by wire transfer or otherwise, in immediately available
|
|||||||
|
funds
to
|
|||||||
|
for
the account of
|
|||||||
|
account
number
|
or,
if mailed by check, to
|
||||||
|
Applicable
statements should be mailed to
|
|||||||
|
This
information is provided by
|
|||||||
|
assignee
named above, or
|
|||||||
|
its
agent.
|
|||||||
EXHIBIT
A-M-1
FORM
OF
CLASS M-1 CERTIFICATE
UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRUST ADMINISTRATOR OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE
OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
SOLELY
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986
AS
AMENDED (THE “CODE”).
THIS
CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES TO THE EXTENT DESCRIBED
IN THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.
THE
HOLDER OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE REPRESENTATION
SET
FORTH IN SECTION 5.02 (c) OF THE POOLING & SERVICING AGREEMENT.
|
Series:
2006-NC3
Pass-Through
Rate: Variable
Cut-off
Date and date of Pooling and Servicing Agreement: December 1,
2006
First
Distribution Date: January 25, 2007
No.
1
|
Aggregate
Certificate Principal Balance of the Class M-1 Certificates as of
the
Issue Date: $39,204,000.00
Denomination:
$39,204,000.00
Servicer:
Barclays Capital Real Estate Inc. d/b/a HomEq Servicing
Master
Servicer and Trust Administrator: Xxxxx Fargo Bank, N.A.
Custodian:
Deutsche Bank National Trust Company
Trustee:
U.S. Bank National Association
Issue
Date: December 28, 2006
CUSIP:
00000XXX0
|
DISTRIBUTIONS
IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE MAY BE
MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE
PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE
AS
THE DENOMINATION OF THIS CERTIFICATE.
MORTGAGE
PASS-THROUGH CERTIFICATE
evidencing
a beneficial ownership interest in a portion of a Trust Fund (the “Trust Fund”)
consisting primarily of a pool of conventional one- to four-family, fixed-rate
and adjustable-rate, first and second lien mortgage loans (the “Mortgage Loans”)
formed and sold by
MORTGAGE
ASSET SECURITIZATION TRANSACTIONS, INC.
THIS
CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN MORTGAGE ASSET
SECURITIZATION TRANSACTIONS, INC., THE MASTER SERVICER, THE TRUST ADMINISTRATOR,
THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
NOR
THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF
THE UNITED STATES.
This
certifies that Cede & Co. is the registered owner of a Percentage Interest
(obtained by dividing the denomination of this Certificate by the aggregate
Certificate Principal Balance of the Class M-1 Certificates as of the Issue
Date) in that certain beneficial ownership interest evidenced by all the Class
M-1 Certificates in a REMIC created pursuant to a Pooling and Servicing
Agreement, dated as specified above (the “Agreement”), among Mortgage Asset
Securitization Transactions, Inc. (hereinafter called the “Depositor,” which
term includes any successor entity under the Agreement), the Master Servicer,
the Trust Administrator and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is
bound.
Pursuant
to the terms of the Agreement, distributions will be made on the 25th
day of
each month or, if such 25th
day is
not a Business Day, the Business Day immediately following (a “Distribution
Date”), commencing on the First Distribution Date specified above, to the Person
in whose name this Certificate is registered on the Record Date, in an amount
equal to the product of the Percentage Interest evidenced by this Certificate
and the amount required to be distributed to the Holders of Class M-1
Certificates on such Distribution Date pursuant to the Agreement.
All
distributions to the Holder of this Certificate under the Agreement will be
made
or caused to be made by the Trust Administrator by wire transfer in immediately
available funds to the account of the Person entitled thereto if such Person
shall have so notified the Trust Administrator in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and
is
the registered owner of Class M-1 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or
(ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
M-1 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear
on
the Certificate Register. Notwithstanding the above, the final distribution
on
this Certificate will be made after due notice by the Trust Administrator of
the
pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trust Administrator for
that purpose as provided in the Agreement.
The
Pass-Through Rate applicable to the calculation of interest payable with respect
to this Certificate on any Distribution Date shall equal a rate per annum equal
to the lesser of (i) the related Formula Rate for such Distribution Date and
(ii) the related Net WAC Rate for such Distribution Date.
This
Certificate is one of a duly authorized issue of Certificates designated as
Mortgage Pass-Through Certificates of the Series specified on the face hereof
(herein called the “Certificates”) and representing a Percentage Interest in the
Class of Certificates specified on the face hereof equal to the denomination
specified on the face hereof divided by the aggregate Certificate Principal
Balance of the Class of Certificates specified on the face hereof.
The
Certificates are limited in right of payment to certain collections and
recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the Agreement. As provided in the Agreement, withdrawals from
the
Distribution Account may be made from time to time for purposes other than
distributions to Certificateholders, such purposes including reimbursement
of
advances made, or certain expenses incurred, with respect to the Mortgage
Loans.
The
Agreement permits, with certain exceptions therein provided, the amendment
thereof and the modification of the rights and obligations of the Depositor,
the
Master Servicer, the Servicer, the Trust Administrator, the Trustee and the
NIMS
Insurer, if any, the rights of the Certificateholders under the Agreement at
any
time by the Depositor, the Master Servicer, the Servicer, the Trust
Administrator, the Trustee and the NIMS Insurer, if any, without the consent
of
the Certificateholders or with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights as further set forth in the
Agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent
is
made upon this Certificate. The Agreement also permits the amendment thereof,
in
certain limited circumstances, without the consent of the Holders of any of
the
Certificates.
As
provided in the Agreement and subject to certain limitations therein set forth,
the transfer of this Certificate is registrable in the Certificate Register
upon
surrender of this Certificate for registration of transfer at the offices or
agencies appointed by the Trust Administrator as provided in the Agreement,
duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trust Administrator duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest
will
be issued to the designated transferee or transferees.
The
holder of this Certificate shall be deemed to have made the representation
set
forth in Section 5.02 (c) of the Pooling & Servicing Agreement.
The
Certificates are issuable in fully registered form only without coupons in
Classes and denominations representing Percentage Interests specified in the
Agreement. As provided in the Agreement and subject to certain limitations
therein set forth, the Certificates are exchangeable for new Certificates of
the
same Class in authorized denominations evidencing the same aggregate Percentage
Interest, as requested by the Holder surrendering the same. No service charge
will be made for any such registration of transfer or exchange of Certificates,
but the Trust Administrator may require payment of a sum sufficient to cover
any
tax or other governmental charge that may be imposed in connection with any
transfer or exchange of Certificates.
The
Depositor, the Master Servicer, the Trust Administrator, the Trustee and any
agent of the Depositor, the Master Servicer, the Trust Administrator or the
Trustee may treat the Person in whose name this Certificate is registered as
the
owner hereof for all purposes, and none of the Depositor, the Master Servicer,
the Trust Administrator, the Trustee nor any such agent shall be affected by
notice to the contrary.
The
obligations created by the Agreement and the Trust Fund created thereby shall
terminate upon payment to the Certificateholders of all amounts held by the
Trust Administrator and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of
all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided
in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans and REO Properties remaining in the
Trust Fund at the time of purchase being less than or equal to 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
Date.
The
recitals contained herein shall be taken as statements of the Depositor and
the
Trust Administrator assumes no responsibility for their
correctness.
Unless
the certificate of authentication hereon has been executed by the Trust
Administrator, by manual signature, this Certificate shall not be entitled
to
any benefit under the Agreement or be valid for any purpose.
IN
WITNESS WHEREOF, the Trust Administrator has caused this Certificate to be
duly
executed.
Dated:
December ___, 2006
|
XXXXX
FARGO BANK, N.A., not in its individual capacity, but solely as Trust
Administrator for the MASTR Asset Backed Securities Trust 2006-NC3,
Mortgage Pass-Through Certificates
|
||||||
|
By:
|
||||||
|
Authorized
Officer
|
||||||
CERTIFICATE
OF AUTHENTICATION
This
is
one of the Certificates referred to in the within-mentioned
Agreement.
|
XXXXX
FARGO BANK, N.A.,
as
Trust Administrator
|
|
|
By:
|
|
|
Authorized
Signatory
|
|
ABBREVIATIONS
The
following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
|
TEN
COM -
|
as
tenants in common
|
UNIF
GIFT MIN ACT -
|
Custodian
__________________
(Cust)
(Minor)
under
Uniform Gifts
to
Minors Act
__________________
(State)
|
|
TEN
ENT -
|
as
tenants by the entireties
|
||
|
JT
TEN -
|
as
joint tenants with right
of
survivorship and not as
tenants
in common
|
Additional
abbreviations may also be used though not in the above list.
ASSIGNMENT
FOR
VALUE
RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
|
.
|
(Please
print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I
(we)
further direct the Trust Administrator to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
|
.
|
|
Dated:
|
|
|
Signature
by or on behalf of assignor
|
|
|
Signature
Guaranteed
|
DISTRIBUTION
INSTRUCTIONS
The
assignee should include the following for purposes of distribution:
|
Distributions
shall be made, by wire transfer or otherwise, in immediately available
|
|||||||
|
funds
to
|
|||||||
|
for
the account of
|
|||||||
|
account
number
|
or,
if mailed by check, to
|
||||||
|
Applicable
statements should be mailed to
|
|||||||
|
This
information is provided by
|
|||||||
|
assignee
named above, or
|
|||||||
|
its
agent.
|
|||||||
EXHIBIT
A-M-2
FORM
OF
CLASS M-2 CERTIFICATE
UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRUST ADMINISTRATOR OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE
OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
SOLELY
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986
AS
AMENDED (THE “CODE”).
THIS
CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES AND THE CLASS M-1
CERTIFICATES TO THE EXTENT DESCRIBED IN THE POOLING AND SERVICING AGREEMENT
REFERRED TO HEREIN.
THE
HOLDER OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE REPRESENTATION
SET
FORTH IN SECTION 5.02 (c) OF THE AGREEMENT.
|
Series:
2006-NC3
Pass-Through
Rate: Variable
Cut-off
Date and date of Pooling and Servicing Agreement: December 1,
2006
First
Distribution Date: January 25, 2007
No.
1
|
Aggregate
Certificate Principal Balance of the Class M-2 Certificates as of
the
Issue Date: $52,100,000.00
Denomination:
$52,100,000.00
Servicer:
Barclays Capital Real Estate Inc. d/b/a HomEq Servicing
Master
Servicer and Trust Administrator: Xxxxx Fargo Bank, N.A.
Custodian:
Deutshce Bank National Trust Company
Trustee:
U.S. Bank National Association
Issue
Date: December 28, 2006
CUSIP:
00000XXX0
|
DISTRIBUTIONS
IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE MAY BE
MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE
PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE
AS
THE DENOMINATION OF THIS CERTIFICATE.
MORTGAGE
PASS-THROUGH CERTIFICATE
evidencing
a beneficial ownership interest in a portion of a Trust Fund (the “Trust Fund”)
consisting primarily of a pool of conventional one- to four-family, fixed-rate
and adjustable-rate, first and second lien mortgage loans (the “Mortgage Loans”)
formed and sold by
MORTGAGE
ASSET SECURITIZATION TRANSACTIONS, INC.
THIS
CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN MORTGAGE ASSET
SECURITIZATION TRANSACTIONS, INC., THE MASTER SERVICER, THE TRUST ADMINISTRATOR,
THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
NOR
THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF
THE UNITED STATES.
This
certifies that Cede & Co. is the registered owner of a Percentage Interest
(obtained by dividing the denomination of this Certificate by the aggregate
Certificate Principal Balance of the Class M-2 Certificates as of the Issue
Date) in that certain beneficial ownership interest evidenced by all the Class
M-2 Certificates in a REMIC created pursuant to a Pooling and Servicing
Agreement, dated as specified above (the “Agreement”), among Mortgage Asset
Securitization Transactions, Inc. (hereinafter called the “Depositor,” which
term includes any successor entity under the Agreement), the Master Servicer,
the Trust Administrator and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is
bound.
Pursuant
to the terms of the Agreement, distributions will be made on the 25th
day of
each month or, if such 25th
day is
not a Business Day, the Business Day immediately following (a “Distribution
Date”), commencing on the First Distribution Date specified above, to the Person
in whose name this Certificate is registered on the Record Date, in an amount
equal to the product of the Percentage Interest evidenced by this Certificate
and the amount required to be distributed to the Holders of Class M-2
Certificates on such Distribution Date pursuant to the Agreement.
All
distributions to the Holder of this Certificate under the Agreement will be
made
or caused to be made by the Trust Administrator by wire transfer in immediately
available funds to the account of the Person entitled thereto if such Person
shall have so notified the Trust Administrator in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and
is
the registered owner of Class M-2 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or
(ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
M-2 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear
on
the Certificate Register. Notwithstanding the above, the final distribution
on
this Certificate will be made after due notice by the Trust Administrator of
the
pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trust Administrator for
that purpose as provided in the Agreement.
The
Pass-Through Rate applicable to the calculation of interest payable with respect
to this Certificate on any Distribution Date shall equal a rate per annum equal
to the lesser of (i) the related Formula Rate for such Distribution Date and
(ii) the related Net WAC Rate for such Distribution Date.
This
Certificate is one of a duly authorized issue of Certificates designated as
Mortgage Pass-Through Certificates of the Series specified on the face hereof
(herein called the “Certificates”) and representing a Percentage Interest in the
Class of Certificates specified on the face hereof equal to the denomination
specified on the face hereof divided by the aggregate Certificate Principal
Balance of the Class of Certificates specified on the face hereof.
The
Certificates are limited in right of payment to certain collections and
recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the Agreement. As provided in the Agreement, withdrawals from
the
Distribution Account may be made from time to time for purposes other than
distributions to Certificateholders, such purposes including reimbursement
of
advances made, or certain expenses incurred, with respect to the Mortgage
Loans.
The
Agreement permits, with certain exceptions therein provided, the amendment
thereof and the modification of the rights and obligations of the Depositor,
the
Master Servicer, the Servicer, the Trust Administrator, the Trustee and the
NIMS
Insurer, if any, the rights of the Certificateholders under the Agreement at
any
time by the Depositor, the Master Servicer, the Servicer, the Trust
Administrator, the Trustee and the NIMS Insurer, if any, without the consent
of
the Certificateholders or with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights as further set forth in the
Agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent
is
made upon this Certificate. The Agreement also permits the amendment thereof,
in
certain limited circumstances, without the consent of the Holders of any of
the
Certificates.
As
provided in the Agreement and subject to certain limitations therein set forth,
the transfer of this Certificate is registrable in the Certificate Register
upon
surrender of this Certificate for registration of transfer at the offices or
agencies appointed by the Trust Administrator as provided in the Agreement,
duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trust Administrator duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest
will
be issued to the designated transferee or transferees.
The
holder of this Certificate shall be deemed to have made the representation
set
forth in Section 5.02 (c) of the Pooling & Servicing Agreement.
The
Certificates are issuable in fully registered form only without coupons in
Classes and denominations representing Percentage Interests specified in the
Agreement. As provided in the Agreement and subject to certain limitations
therein set forth, the Certificates are exchangeable for new Certificates of
the
same Class in authorized denominations evidencing the same aggregate Percentage
Interest, as requested by the Holder surrendering the same. No service charge
will be made for any such registration of transfer or exchange of Certificates,
but the Trust Administrator may require payment of a sum sufficient to cover
any
tax or other governmental charge that may be imposed in connection with any
transfer or exchange of Certificates.
The
Depositor, the Master Servicer, the Trust Administrator, the Trustee and any
agent of the Depositor, the Master Servicer, the Trust Administrator or the
Trustee may treat the Person in whose name this Certificate is registered as
the
owner hereof for all purposes, and none of the Depositor, the Master Servicer,
the Trust Administrator, the Trustee nor any such agent shall be affected by
notice to the contrary.
The
obligations created by the Agreement and the Trust Fund created thereby shall
terminate upon payment to the Certificateholders of all amounts held by the
Trust Administrator and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of
all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided
in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans and REO Properties remaining in the
Trust Fund at the time of purchase being less than or equal to 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
Date.
The
recitals contained herein shall be taken as statements of the Depositor and
the
Trust Administrator assumes no responsibility for their
correctness.
Unless
the certificate of authentication hereon has been executed by the Trust
Administrator, by manual signature, this Certificate shall not be entitled
to
any benefit under the Agreement or be valid for any purpose.
IN
WITNESS WHEREOF, the Trust Administrator has caused this Certificate to be
duly
executed.
Dated:
December ___, 2006
|
XXXXX
FARGO BANK, N.A., not in its individual capacity, but solely as Trust
Administrator for the MASTR Asset Backed Securities Trust 2006-NC3,
Mortgage Pass-Through Certificates
|
||||||
|
By:
|
||||||
|
Authorized
Officer
|
||||||
CERTIFICATE
OF AUTHENTICATION
This
is
one of the Certificates referred to in the within-mentioned
Agreement.
|
XXXXX
FARGO BANK, N.A.,
as
Trust Administrator
|
|
|
By:
|
|
|
Authorized
Signatory
|
|
ABBREVIATIONS
The
following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
|
TEN
COM -
|
as
tenants in common
|
UNIF
GIFT MIN ACT -
|
Custodian
__________________
(Cust)
(Minor)
under
Uniform Gifts
to
Minors Act
__________________
(State)
|
|
TEN
ENT -
|
as
tenants by the entireties
|
||
|
JT
TEN -
|
as
joint tenants with right
of
survivorship and not as
tenants
in common
|
Additional
abbreviations may also be used though not in the above list.
ASSIGNMENT
FOR
VALUE
RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
|
.
|
(Please
print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I
(we)
further direct the Trust Administrator to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
|
.
|
|
Dated:
|
|
|
Signature
by or on behalf of assignor
|
|
|
Signature
Guaranteed
|
DISTRIBUTION
INSTRUCTIONS
The
assignee should include the following for purposes of distribution:
|
Distributions
shall be made, by wire transfer or otherwise, in immediately available
|
|||||||
|
funds
to
|
|||||||
|
for
the account of
|
|||||||
|
account
number
|
or,
if mailed by check, to
|
||||||
|
Applicable
statements should be mailed to
|
|||||||
|
This
information is provided by
|
|||||||
|
assignee
named above, or
|
|||||||
|
its
agent.
|
|||||||
EXHIBIT
A-M-3
FORM
OF
CLASS M-3 CERTIFICATE
UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRUST ADMINISTRATOR OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE
OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
SOLELY
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986
AS
AMENDED (THE “CODE”).
THIS
CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS M-1
CERTIFICATES AND THE CLASS M-2 CERTIFICATES TO THE EXTENT DESCRIBED IN THE
POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.
THE
HOLDER OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE REPRESENTATION
SET
FORTH IN SECTION 5.02 (c) OF THE AGREEMENT.
|
Series:
2006-NC3
Pass-Through
Rate: Variable
Cut-off
Date and date of Pooling and Servicing Agreement: December 1,
2006
First
Distribution Date: January 25, 2007
No.
1
|
Aggregate
Certificate Principal Balance of the Class M-3 Certificates as of
the
Issue Date: $17,539,000.00
Denomination:
$17,539,000.00
Servicer:
Barclays Capital Real Estate Inc. d/b/a HomEq Servicing
Master
Servicer and Trust Administrator: Xxxxx Fargo Bank, N.A.
Custodian:
Deutsche Bank National Trust Company
Trustee:
U.S. Bank National Association
Issue
Date: December 28, 2006
CUSIP:
00000XXX0
|
DISTRIBUTIONS
IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE MAY BE
MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE
PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE
AS
THE DENOMINATION OF THIS CERTIFICATE.
MORTGAGE
PASS-THROUGH CERTIFICATE
evidencing
a beneficial ownership interest in a portion of a Trust Fund (the “Trust Fund”)
consisting primarily of a pool of conventional one- to four-family, fixed-rate
and adjustable-rate, first and second lien mortgage loans (the “Mortgage Loans”)
formed and sold by
MORTGAGE
ASSET SECURITIZATION TRANSACTIONS, INC.
THIS
CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN MORTGAGE ASSET
SECURITIZATION TRANSACTIONS, INC., THE MASTER SERVICER, THE TRUST ADMINISTRATOR,
THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
NOR
THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF
THE UNITED STATES.
This
certifies that Cede & Co. is the registered owner of a Percentage Interest
(obtained by dividing the denomination of this Certificate by the aggregate
Certificate Principal Balance of the Class M-3 Certificates as of the Issue
Date) in that certain beneficial ownership interest evidenced by all the Class
M-3 Certificates in a REMIC created pursuant to a Pooling and Servicing
Agreement, dated as specified above (the “Agreement”), among Mortgage Asset
Securitization Transactions, Inc. (hereinafter called the “Depositor,” which
term includes any successor entity under the Agreement), the Master Servicer,
the Trust Administrator and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is
bound.
Pursuant
to the terms of the Agreement, distributions will be made on the 25th
day of
each month or, if such 25th
day is
not a Business Day, the Business Day immediately following (a “Distribution
Date”), commencing on the First Distribution Date specified above, to the Person
in whose name this Certificate is registered on the Record Date, in an amount
equal to the product of the Percentage Interest evidenced by this Certificate
and the amount required to be distributed to the Holders of Class M-3
Certificates on such Distribution Date pursuant to the Agreement.
All
distributions to the Holder of this Certificate under the Agreement will be
made
or caused to be made by the Trust Administrator by wire transfer in immediately
available funds to the account of the Person entitled thereto if such Person
shall have so notified the Trust Administrator in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and
is
the registered owner of Class M-3 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or
(ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
M-3 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear
on
the Certificate Register. Notwithstanding the above, the final distribution
on
this Certificate will be made after due notice by the Trust Administrator of
the
pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trust Administrator for
that purpose as provided in the Agreement.
The
Pass-Through Rate applicable to the calculation of interest payable with respect
to this Certificate on any Distribution Date shall equal a rate per annum equal
to the lesser of (i) the related Formula Rate for such Distribution Date and
(ii) the related Net WAC Rate for such Distribution Date.
This
Certificate is one of a duly authorized issue of Certificates designated as
Mortgage Pass-Through Certificates of the Series specified on the face hereof
(herein called the “Certificates”) and representing a Percentage Interest in the
Class of Certificates specified on the face hereof equal to the denomination
specified on the face hereof divided by the aggregate Certificate Principal
Balance of the Class of Certificates specified on the face hereof.
The
Certificates are limited in right of payment to certain collections and
recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the Agreement. As provided in the Agreement, withdrawals from
the
Distribution Account may be made from time to time for purposes other than
distributions to Certificateholders, such purposes including reimbursement
of
advances made, or certain expenses incurred, with respect to the Mortgage
Loans.
The
Agreement permits, with certain exceptions therein provided, the amendment
thereof and the modification of the rights and obligations of the Depositor,
the
Master Servicer, the Servicer, the Trust Administrator, the Trustee and the
NIMS
Insurer, if any, the rights of the Certificateholders under the Agreement at
any
time by the Depositor, the Master Servicer, the Servicer, the Trust
Administrator, the Trustee and the NIMS Insurer, if any, without the consent
of
the Certificateholders or with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights as further set forth in the
Agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent
is
made upon this Certificate. The Agreement also permits the amendment thereof,
in
certain limited circumstances, without the consent of the Holders of any of
the
Certificates..
As
provided in the Agreement and subject to certain limitations therein set forth,
the transfer of this Certificate is registrable in the Certificate Register
upon
surrender of this Certificate for registration of transfer at the offices or
agencies appointed by the Trust Administrator as provided in the Agreement,
duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trust Administrator duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest
will
be issued to the designated transferee or transferees.
The
holder of this Certificate shall be deemed to have made the representation
set
forth in Section 5.02 (c) of the Pooling & Servicing Agreement.
The
Certificates are issuable in fully registered form only without coupons in
Classes and denominations representing Percentage Interests specified in the
Agreement. As provided in the Agreement and subject to certain limitations
therein set forth, the Certificates are exchangeable for new Certificates of
the
same Class in authorized denominations evidencing the same aggregate Percentage
Interest, as requested by the Holder surrendering the same. No service charge
will be made for any such registration of transfer or exchange of Certificates,
but the Trust Administrator may require payment of a sum sufficient to cover
any
tax or other governmental charge that may be imposed in connection with any
transfer or exchange of Certificates.
The
Depositor, the Master Servicer, the Trust Administrator, the Trustee and any
agent of the Depositor, the Master Servicer, the Trust Administrator or the
Trustee may treat the Person in whose name this Certificate is registered as
the
owner hereof for all purposes, and none of the Depositor, the Master Servicer,
the Trust Administrator, the Trustee nor any such agent shall be affected by
notice to the contrary.
The
obligations created by the Agreement and the Trust Fund created thereby shall
terminate upon payment to the Certificateholders of all amounts held by the
Trust Administrator and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of
all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided
in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans and REO Properties remaining in the
Trust Fund at the time of purchase being less than or equal to 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
Date.
The
recitals contained herein shall be taken as statements of the Depositor and
the
Trust Administrator assumes no responsibility for their
correctness.
Unless
the certificate of authentication hereon has been executed by the Trust
Administrator, by manual signature, this Certificate shall not be entitled
to
any benefit under the Agreement or be valid for any purpose.
IN
WITNESS WHEREOF, the Trust Administrator has caused this Certificate to be
duly
executed.
Dated:
December ___, 2006
|
XXXXX
FARGO BANK, N.A., not in its individual capacity, but solely as Trust
Administrator for the MASTR Asset Backed Securities Trust 2006-NC3,
Mortgage Pass-Through Certificates
|
||||||
|
By:
|
||||||
|
Authorized
Officer
|
||||||
CERTIFICATE
OF AUTHENTICATION
This
is
one of the Certificates referred to in the within-mentioned
Agreement.
|
XXXXX
FARGO BANK, N.A.,
as
Trust Administrator
|
|
|
By:
|
|
|
Authorized
Signatory
|
|
ABBREVIATIONS
The
following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
|
TEN
COM -
|
as
tenants in common
|
UNIF
GIFT MIN ACT -
|
Custodian
__________________
(Cust)
(Minor)
under
Uniform Gifts
to
Minors Act
__________________
(State)
|
|
TEN
ENT -
|
as
tenants by the entireties
|
||
|
JT
TEN -
|
as
joint tenants with right
of
survivorship and not as
tenants
in common
|
Additional
abbreviations may also be used though not in the above list.
ASSIGNMENT
FOR
VALUE
RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
|
.
|
(Please
print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I
(we)
further direct the Trust Administrator to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
|
.
|
|
Dated:
|
|
|
Signature
by or on behalf of assignor
|
|
|
Signature
Guaranteed
|
DISTRIBUTION
INSTRUCTIONS
The
assignee should include the following for purposes of distribution:
|
Distributions
shall be made, by wire transfer or otherwise, in immediately available
|
|||||||
|
funds
to
|
|||||||
|
for
the account of
|
|||||||
|
account
number
|
or,
if mailed by check, to
|
||||||
|
Applicable
statements should be mailed to
|
|||||||
|
This
information is provided by
|
|||||||
|
assignee
named above, or
|
|||||||
|
its
agent.
|
|||||||
EXHIBIT
A-M-4
FORM
OF
CLASS M-4 CERTIFICATE
UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRUST ADMINISTRATOR OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE
OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
SOLELY
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986
AS
AMENDED (THE “CODE”).
THIS
CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS M-1
CERTIFICATES, THE CLASS M-2 CERTIFICATES AND THE CLASS M-3 CERTIFICATES TO
THE
EXTENT DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO
HEREIN.
THE
HOLDER OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE REPRESENTATION
SET
FORTH IN SECTION 5.02 (c) OF THE AGREEMENT.
|
Series:
2006-NC3
Pass-Through
Rate: Variable
Cut-off
Date and date of Pooling and Servicing Agreement: December 1,
2006
First
Distribution Date: January 25, 2007
No.
1
|
Aggregate
Certificate Principal Balance of the Class M-4 Certificates as of
the
Issue Date: $17,538,000.00
Denomination:
$17,538,000.00
Servicer:
Barclays Capital Real Estate Inc. d/b/a HomEq Servicing
Master
Servicer and Trust Administrator: Xxxxx Fargo Bank, N.A.
Custodian:
Deutsche Bank National Trust Company
Trustee:
U.S. Bank National Association
Issue
Date: December 28, 2006
CUSIP:
00000XXX0
|
DISTRIBUTIONS
IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE MAY BE
MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE
PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE
AS
THE DENOMINATION OF THIS CERTIFICATE.
MORTGAGE
PASS-THROUGH CERTIFICATE
evidencing
a beneficial ownership interest in a portion of a Trust Fund (the “Trust Fund”)
consisting primarily of a pool of conventional one- to four-family, fixed-rate
and adjustable-rate, first and second lien mortgage loans (the “Mortgage Loans”)
formed and sold by
MORTGAGE
ASSET SECURITIZATION TRANSACTIONS, INC.
THIS
CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN MORTGAGE ASSET
SECURITIZATION TRANSACTIONS, INC., THE MASTER SERVICER, THE TRUST ADMINISTRATOR,
THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
NOR
THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF
THE UNITED STATES.
This
certifies that Cede & Co. is the registered owner of a Percentage Interest
(obtained by dividing the denomination of this Certificate by the aggregate
Certificate Principal Balance of the Class M-4 Certificates as of the Issue
Date) in that certain beneficial ownership interest evidenced by all the Class
M-4 Certificates in a REMIC created pursuant to a Pooling and Servicing
Agreement, dated as specified above (the “Agreement”), among Mortgage Asset
Securitization Transactions, Inc. (hereinafter called the “Depositor,” which
term includes any successor entity under the Agreement), the Master Servicer,
the Trust Administrator and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is
bound.
Pursuant
to the terms of the Agreement, distributions will be made on the 25th
day of
each month or, if such 25th
day is
not a Business Day, the Business Day immediately following (a “Distribution
Date”), commencing on the First Distribution Date specified above, to the Person
in whose name this Certificate is registered on the Record Date, in an amount
equal to the product of the Percentage Interest evidenced by this Certificate
and the amount required to be distributed to the Holders of Class M-4
Certificates on such Distribution Date pursuant to the Agreement.
All
distributions to the Holder of this Certificate under the Agreement will be
made
or caused to be made by the Trust Administrator by wire transfer in immediately
available funds to the account of the Person entitled thereto if such Person
shall have so notified the Trust Administrator in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and
is
the registered owner of Class M-4 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or
(ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
M-4 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear
on
the Certificate Register. Notwithstanding the above, the final distribution
on
this Certificate will be made after due notice by the Trust Administrator of
the
pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trust Administrator for
that purpose as provided in the Agreement.
The
Pass-Through Rate applicable to the calculation of interest payable with respect
to this Certificate on any Distribution Date shall equal a rate per annum equal
to the lesser of (i) the related Formula Rate for such Distribution Date and
(ii) the related Net WAC Rate for such Distribution Date.
This
Certificate is one of a duly authorized issue of Certificates designated as
Mortgage Pass-Through Certificates of the Series specified on the face hereof
(herein called the “Certificates”) and representing a Percentage Interest in the
Class of Certificates specified on the face hereof equal to the denomination
specified on the face hereof divided by the aggregate Certificate Principal
Balance of the Class of Certificates specified on the face hereof.
The
Certificates are limited in right of payment to certain collections and
recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the Agreement. As provided in the Agreement, withdrawals from
the
Distribution Account may be made from time to time for purposes other than
distributions to Certificateholders, such purposes including reimbursement
of
advances made, or certain expenses incurred, with respect to the Mortgage
Loans.
The
Agreement permits, with certain exceptions therein provided, the amendment
thereof and the modification of the rights and obligations of the Depositor,
the
Master Servicer, the Servicer, the Trust Administrator, the Trustee and the
NIMS
Insurer, if any, the rights of the Certificateholders under the Agreement at
any
time by the Depositor, the Master Servicer, the Servicer, the Trust
Administrator, the Trustee and the NIMS Insurer, if any, without the consent
of
the Certificateholders or with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights as further set forth in the
Agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent
is
made upon this Certificate. The Agreement also permits the amendment thereof,
in
certain limited circumstances, without the consent of the Holders of any of
the
Certificates.
As
provided in the Agreement and subject to certain limitations therein set forth,
the transfer of this Certificate is registrable in the Certificate Register
upon
surrender of this Certificate for registration of transfer at the offices or
agencies appointed by the Trust Administrator as provided in the Agreement,
duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trust Administrator duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest
will
be issued to the designated transferee or transferees.
The
holder of this Certificate shall be deemed to have made the representation
set
forth in Section 5.02 (c) of the Pooling & Servicing Agreement.
The
Certificates are issuable in fully registered form only without coupons in
Classes and denominations representing Percentage Interests specified in the
Agreement. As provided in the Agreement and subject to certain limitations
therein set forth, the Certificates are exchangeable for new Certificates of
the
same Class in authorized denominations evidencing the same aggregate Percentage
Interest, as requested by the Holder surrendering the same. No service charge
will be made for any such registration of transfer or exchange of Certificates,
but the Trust Administrator may require payment of a sum sufficient to cover
any
tax or other governmental charge that may be imposed in connection with any
transfer or exchange of Certificates.
The
Depositor, the Master Servicer, the Trust Administrator, the Trustee and any
agent of the Depositor, the Master Servicer, the Trust Administrator or the
Trustee may treat the Person in whose name this Certificate is registered as
the
owner hereof for all purposes, and none of the Depositor, the Master Servicer,
the Trust Administrator, the Trustee nor any such agent shall be affected by
notice to the contrary.
The
obligations created by the Agreement and the Trust Fund created thereby shall
terminate upon payment to the Certificateholders of all amounts held by the
Trust Administrator and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of
all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided
in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans and REO Properties remaining in the
Trust Fund at the time of purchase being less than or equal to 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
Date.
The
recitals contained herein shall be taken as statements of the Depositor and
the
Trust Administrator assumes no responsibility for their
correctness.
Unless
the certificate of authentication hereon has been executed by the Trust
Administrator, by manual signature, this Certificate shall not be entitled
to
any benefit under the Agreement or be valid for any purpose.
IN
WITNESS WHEREOF, the Trust Administrator has caused this Certificate to be
duly
executed.
Dated:
December ___, 2006
|
XXXXX
FARGO BANK, N.A., not in its individual capacity, but solely as Trust
Administrator for the MASTR Asset Backed Securities Trust 2006-NC3,
Mortgage Pass-Through Certificates
|
||||||
|
By:
|
||||||
|
Authorized
Officer
|
||||||
CERTIFICATE
OF AUTHENTICATION
This
is
one of the Certificates referred to in the within-mentioned
Agreement.
|
XXXXX
FARGO BANK, N.A.,
as
Trust Administrator
|
|
|
By:
|
|
|
Authorized
Signatory
|
|
ABBREVIATIONS
The
following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
|
TEN
COM -
|
as
tenants in common
|
UNIF
GIFT MIN ACT -
|
Custodian
__________________
(Cust)
(Minor)
under
Uniform Gifts
to
Minors Act
__________________
(State)
|
|
TEN
ENT -
|
as
tenants by the entireties
|
||
|
JT
TEN -
|
as
joint tenants with right
of
survivorship and not as
tenants
in common
|
Additional
abbreviations may also be used though not in the above list.
ASSIGNMENT
FOR
VALUE
RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
|
.
|
(Please
print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I
(we)
further direct the Trust Administrator to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
|
.
|
|
Dated:
|
|
|
Signature
by or on behalf of assignor
|
|
|
Signature
Guaranteed
|
DISTRIBUTION
INSTRUCTIONS
The
assignee should include the following for purposes of distribution:
|
Distributions
shall be made, by wire transfer or otherwise, in immediately available
|
|||||||
|
funds
to
|
|||||||
|
for
the account of
|
|||||||
|
account
number
|
or,
if mailed by check, to
|
||||||
|
Applicable
statements should be mailed to
|
|||||||
|
This
information is provided by
|
|||||||
|
assignee
named above, or
|
|||||||
|
its
agent.
|
|||||||
EXHIBIT
A-M-5
FORM
OF
CLASS M-5 CERTIFICATE
UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRUST ADMINISTRATOR OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE
OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
SOLELY
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986
AS
AMENDED (THE “CODE”).
THIS
CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS M-1
CERTIFICATES, THE CLASS M-2 CERTIFICATES, THE CLASS M-3 CERTIFICATES AND THE
CLASS M-4 CERTIFICATES TO THE EXTENT DESCRIBED IN THE POOLING AND SERVICING
AGREEMENT REFERRED TO HEREIN.
THE
HOLDER OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE REPRESENTATION
SET
FORTH IN SECTION 5.02 (c) OF THE AGREEMENT.
|
Series:
2006-NC3
Pass-Through
Rate: Variable
Cut-off
Date and date of Pooling and Servicing Agreement: December 1,
2006
First
Distribution Date: January 25, 2007
No.
1
|
Aggregate
Certificate Principal Balance of the Class M-5 Certificates as of
the
Issue Date: $18,054,000.00
Denomination:
$18,054,000.00
Servicer:
Barclays Capital Real Estate Inc. d/b/a HomEq Servicing
Master
Servicer and Trust Administrator: Xxxxx Fargo Bank, N.A.
Custodian:
Deutsche Bank National Trust Company
Trustee:
U.S. Bank National Association
Issue
Date: December 28, 2006
CUSIP:
00000XXX0
|
DISTRIBUTIONS
IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE MAY BE
MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE
PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE
AS
THE DENOMINATION OF THIS CERTIFICATE.
MORTGAGE
PASS-THROUGH CERTIFICATE
evidencing
a beneficial ownership interest in a portion of a Trust Fund (the “Trust Fund”)
consisting primarily of a pool of conventional one- to four-family, fixed-rate
and adjustable-rate, first and second lien mortgage loans (the “Mortgage Loans”)
formed and sold by
MORTGAGE
ASSET SECURITIZATION TRANSACTIONS, INC.
THIS
CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN MORTGAGE ASSET
SECURITIZATION TRANSACTIONS, INC., THE MASTER SERVICER, THE TRUST ADMINISTRATOR,
THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
NOR
THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF
THE UNITED STATES.
This
certifies that Cede & Co. is the registered owner of a Percentage Interest
(obtained by dividing the denomination of this Certificate by the aggregate
Certificate Principal Balance of the Class M-5 Certificates as of the Issue
Date) in that certain beneficial ownership interest evidenced by all the Class
M-5 Certificates in a REMIC created pursuant to a Pooling and Servicing
Agreement, dated as specified above (the “Agreement”), among Mortgage Asset
Securitization Transactions, Inc. (hereinafter called the “Depositor,” which
term includes any successor entity under the Agreement), the Master Servicer,
the Trust Administrator and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is
bound.
Pursuant
to the terms of the Agreement, distributions will be made on the 25th
day of
each month or, if such 25th
day is
not a Business Day, the Business Day immediately following (a “Distribution
Date”), commencing on the First Distribution Date specified above, to the Person
in whose name this Certificate is registered on the Record Date, in an amount
equal to the product of the Percentage Interest evidenced by this Certificate
and the amount required to be distributed to the Holders of Class M-5
Certificates on such Distribution Date pursuant to the Agreement.
All
distributions to the Holder of this Certificate under the Agreement will be
made
or caused to be made by the Trust Administrator by wire transfer in immediately
available funds to the account of the Person entitled thereto if such Person
shall have so notified the Trust Administrator in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and
is
the registered owner of Class M-5 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or
(ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
M-5 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear
on
the Certificate Register. Notwithstanding the above, the final distribution
on
this Certificate will be made after due notice by the Trust Administrator of
the
pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trust Administrator for
that purpose as provided in the Agreement.
The
Pass-Through Rate applicable to the calculation of interest payable with respect
to this Certificate on any Distribution Date shall equal a rate per annum equal
to the lesser of (i) the related Formula Rate for such Distribution Date and
(ii) the related Net WAC Rate for such Distribution Date.
This
Certificate is one of a duly authorized issue of Certificates designated as
Mortgage Pass-Through Certificates of the Series specified on the face hereof
(herein called the “Certificates”) and representing a Percentage Interest in the
Class of Certificates specified on the face hereof equal to the denomination
specified on the face hereof divided by the aggregate Certificate Principal
Balance of the Class of Certificates specified on the face hereof.
The
Certificates are limited in right of payment to certain collections and
recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the Agreement. As provided in the Agreement, withdrawals from
the
Distribution Account may be made from time to time for purposes other than
distributions to Certificateholders, such purposes including reimbursement
of
advances made, or certain expenses incurred, with respect to the Mortgage
Loans.
The
Agreement permits, with certain exceptions therein provided, the amendment
thereof and the modification of the rights and obligations of the Depositor,
the
Master Servicer, the Servicer, the Trust Administrator, the Trustee and the
NIMS
Insurer, if any, the rights of the Certificateholders under the Agreement at
any
time by the Depositor, the Master Servicer, the Servicer, the Trust
Administrator, the Trustee and the NIMS Insurer, if any, without the consent
of
the Certificateholders or with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights as further set forth in the
Agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent
is
made upon this Certificate. The Agreement also permits the amendment thereof,
in
certain limited circumstances, without the consent of the Holders of any of
the
Certificates..
As
provided in the Agreement and subject to certain limitations therein set forth,
the transfer of this Certificate is registrable in the Certificate Register
upon
surrender of this Certificate for registration of transfer at the offices or
agencies appointed by the Trust Administrator as provided in the Agreement,
duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trust Administrator duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest
will
be issued to the designated transferee or transferees.
The
holder of this Certificate shall be deemed to have made the representation
set
forth in Section 5.02 (c) of the Pooling & Servicing Agreement.
The
Certificates are issuable in fully registered form only without coupons in
Classes and denominations representing Percentage Interests specified in the
Agreement. As provided in the Agreement and subject to certain limitations
therein set forth, the Certificates are exchangeable for new Certificates of
the
same Class in authorized denominations evidencing the same aggregate Percentage
Interest, as requested by the Holder surrendering the same. No service charge
will be made for any such registration of transfer or exchange of Certificates,
but the Trust Administrator may require payment of a sum sufficient to cover
any
tax or other governmental charge that may be imposed in connection with any
transfer or exchange of Certificates.
The
Depositor, the Master Servicer, the Trust Administrator, the Trustee and any
agent of the Depositor, the Master Servicer, the Trust Administrator or the
Trustee may treat the Person in whose name this Certificate is registered as
the
owner hereof for all purposes, and none of the Depositor, the Master Servicer,
the Trust Administrator, the Trustee nor any such agent shall be affected by
notice to the contrary.
The
obligations created by the Agreement and the Trust Fund created thereby shall
terminate upon payment to the Certificateholders of all amounts held by the
Trust Administrator and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of
all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided
in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans and REO Properties remaining in the
Trust Fund at the time of purchase being less than or equal to 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
Date.
The
recitals contained herein shall be taken as statements of the Depositor and
the
Trust Administrator assumes no responsibility for their
correctness.
Unless
the certificate of authentication hereon has been executed by the Trust
Administrator, by manual signature, this Certificate shall not be entitled
to
any benefit under the Agreement or be valid for any purpose.
IN
WITNESS WHEREOF, the Trust Administrator has caused this Certificate to be
duly
executed.
Dated:
December ___, 2006
|
XXXXX
FARGO BANK, N.A., not in its individual capacity, but solely as Trust
Administrator for the MASTR Asset Backed Securities Trust 2006-NC3,
Mortgage Pass-Through Certificates
|
||||||
|
By:
|
||||||
|
Authorized
Officer
|
||||||
CERTIFICATE
OF AUTHENTICATION
This
is
one of the Certificates referred to in the within-mentioned
Agreement.
|
XXXXX
FARGO BANK, N.A.,
as
Trust Administrator
|
|
|
By:
|
|
|
Authorized
Signatory
|
|
ABBREVIATIONS
The
following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
|
TEN
COM -
|
as
tenants in common
|
UNIF
GIFT MIN ACT -
|
Custodian
__________________
(Cust)
(Minor)
under
Uniform Gifts
to
Minors Act
__________________
(State)
|
|
TEN
ENT -
|
as
tenants by the entireties
|
||
|
JT
TEN -
|
as
joint tenants with right
of
survivorship and not as
tenants
in common
|
Additional
abbreviations may also be used though not in the above list.
ASSIGNMENT
FOR
VALUE
RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
|
.
|
(Please
print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I
(we)
further direct the Trust Administrator to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
|
.
|
|
Dated:
|
|
|
Signature
by or on behalf of assignor
|
|
|
Signature
Guaranteed
|
DISTRIBUTION
INSTRUCTIONS
The
assignee should include the following for purposes of distribution:
|
Distributions
shall be made, by wire transfer or otherwise, in immediately available
|
|||||||
|
funds
to
|
|||||||
|
for
the account of
|
|||||||
|
account
number
|
or,
if mailed by check, to
|
||||||
|
Applicable
statements should be mailed to
|
|||||||
|
This
information is provided by
|
|||||||
|
assignee
named above, or
|
|||||||
|
its
agent.
|
|||||||
EXHIBIT
A-M-6
FORM
OF
CLASS M-6 CERTIFICATE
UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRUST ADMINISTRATOR OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE
OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
SOLELY
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986
AS
AMENDED (THE “CODE”).
THIS
CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS M-1
CERTIFICATES, THE CLASS M-2 CERTIFICATES, THE CLASS M-3 CERTIFICATES, THE CLASS
M-4 CERTIFICATES AND THE CLASS M-5 CERTIFICATES TO THE EXTENT DESCRIBED IN
THE
POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.
THE
HOLDER OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE REPRESENTATION
SET
FORTH IN SECTION 5.02 (c) OF THE AGREEMENT.
|
Series:
2006-NC3
Pass-Through
Rate: Variable
Cut-off
Date and date of Pooling and Servicing Agreement: December 1,
2006
First
Distribution Date: January 25, 2007
No.
1
|
Aggregate
Certificate Principal Balance of the Class M-6 Certificates as of
the
Issue Date: $13,927,000.00
Denomination:
$13,927,000.00
Servicer:
Barclays Capital Real Estate Inc. d/b/a HomEq Servicing
Master
Servicer and Trust Administrator: Xxxxx Fargo Bank, N.A.
Custodian:
Deutsche Bank National Trust Company
Trustee:
U.S. Bank National Association
Issue
Date: December 28, 2006
CUSIP:
00000XXX0
|
DISTRIBUTIONS
IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE MAY BE
MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE
PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE
AS
THE DENOMINATION OF THIS CERTIFICATE.
MORTGAGE
PASS-THROUGH CERTIFICATE
evidencing
a beneficial ownership interest in a portion of a Trust Fund (the “Trust Fund”)
consisting primarily of a pool of conventional one- to four-family, fixed-rate
and adjustable-rate, first and second lien mortgage loans (the “Mortgage Loans”)
formed and sold by
MORTGAGE
ASSET SECURITIZATION TRANSACTIONS, INC.
THIS
CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN MORTGAGE ASSET
SECURITIZATION TRANSACTIONS, INC., THE MASTER SERVICER, THE TRUST ADMINISTRATOR,
THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
NOR
THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF
THE UNITED STATES.
This
certifies that Cede & Co. is the registered owner of a Percentage Interest
(obtained by dividing the denomination of this Certificate by the aggregate
Certificate Principal Balance of the Class M-6 Certificates as of the Issue
Date) in that certain beneficial ownership interest evidenced by all the Class
M-6 Certificates in a REMIC created pursuant to a Pooling and Servicing
Agreement, dated as specified above (the “Agreement”), among Mortgage Asset
Securitization Transactions, Inc. (hereinafter called the “Depositor,” which
term includes any successor entity under the Agreement), the Master Servicer,
the Trust Administrator and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is
bound.
Pursuant
to the terms of the Agreement, distributions will be made on the 25th
day of
each month or, if such 25th
day is
not a Business Day, the Business Day immediately following (a “Distribution
Date”), commencing on the First Distribution Date specified above, to the Person
in whose name this Certificate is registered on the Record Date, in an amount
equal to the product of the Percentage Interest evidenced by this Certificate
and the amount required to be distributed to the Holders of Class M-6
Certificates on such Distribution Date pursuant to the Agreement.
All
distributions to the Holder of this Certificate under the Agreement will be
made
or caused to be made by the Trust Administrator by wire transfer in immediately
available funds to the account of the Person entitled thereto if such Person
shall have so notified the Trust Administrator in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and
is
the registered owner of Class M-6 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or
(ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
M-6 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear
on
the Certificate Register. Notwithstanding the above, the final distribution
on
this Certificate will be made after due notice by the Trust Administrator of
the
pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trust Administrator for
that purpose as provided in the Agreement.
The
Pass-Through Rate applicable to the calculation of interest payable with respect
to this Certificate on any Distribution Date shall equal a rate per annum equal
to the lesser of (i) the related Formula Rate for such Distribution Date and
(ii) the related Net WAC Rate for such Distribution Date.
This
Certificate is one of a duly authorized issue of Certificates designated as
Mortgage Pass-Through Certificates of the Series specified on the face hereof
(herein called the “Certificates”) and representing a Percentage Interest in the
Class of Certificates specified on the face hereof equal to the denomination
specified on the face hereof divided by the aggregate Certificate Principal
Balance of the Class of Certificates specified on the face hereof.
The
Certificates are limited in right of payment to certain collections and
recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the Agreement. As provided in the Agreement, withdrawals from
the
Distribution Account may be made from time to time for purposes other than
distributions to Certificateholders, such purposes including reimbursement
of
advances made, or certain expenses incurred, with respect to the Mortgage
Loans.
The
Agreement permits, with certain exceptions therein provided, the amendment
thereof and the modification of the rights and obligations of the Depositor,
the
Master Servicer, the Servicer, the Trust Administrator, the Trustee and the
NIMS
Insurer, if any, the rights of the Certificateholders under the Agreement at
any
time by the Depositor, the Master Servicer, the Servicer, the Trust
Administrator, the Trustee and the NIMS Insurer, if any, without the consent
of
the Certificateholders or with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights as further set forth in the
Agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent
is
made upon this Certificate. The Agreement also permits the amendment thereof,
in
certain limited circumstances, without the consent of the Holders of any of
the
Certificates.
As
provided in the Agreement and subject to certain limitations therein set forth,
the transfer of this Certificate is registrable in the Certificate Register
upon
surrender of this Certificate for registration of transfer at the offices or
agencies appointed by the Trust Administrator as provided in the Agreement,
duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trust Administrator duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest
will
be issued to the designated transferee or transferees.
The
holder of this Certificate shall be deemed to have made the representation
set
forth in Section 5.02 (c) of the Pooling & Servicing Agreement.
The
Certificates are issuable in fully registered form only without coupons in
Classes and denominations representing Percentage Interests specified in the
Agreement. As provided in the Agreement and subject to certain limitations
therein set forth, the Certificates are exchangeable for new Certificates of
the
same Class in authorized denominations evidencing the same aggregate Percentage
Interest, as requested by the Holder surrendering the same. No service charge
will be made for any such registration of transfer or exchange of Certificates,
but the Trust Administrator may require payment of a sum sufficient to cover
any
tax or other governmental charge that may be imposed in connection with any
transfer or exchange of Certificates.
The
Depositor, the Master Servicer, the Trust Administrator, the Trustee and any
agent of the Depositor, the Master Servicer, the Trust Administrator or the
Trustee may treat the Person in whose name this Certificate is registered as
the
owner hereof for all purposes, and none of the Depositor, the Master Servicer,
the Trust Administrator, the Trustee nor any such agent shall be affected by
notice to the contrary.
The
obligations created by the Agreement and the Trust Fund created thereby shall
terminate upon payment to the Certificateholders of all amounts held by the
Trust Administrator and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of
all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided
in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans and REO Properties remaining in the
Trust Fund at the time of purchase being less than or equal to 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
Date.
The
recitals contained herein shall be taken as statements of the Depositor and
the
Trust Administrator assumes no responsibility for their
correctness.
Unless
the certificate of authentication hereon has been executed by the Trust
Administrator, by manual signature, this Certificate shall not be entitled
to
any benefit under the Agreement or be valid for any purpose.
IN
WITNESS WHEREOF, the Trust Administrator has caused this Certificate to be
duly
executed.
Dated:
December ___, 2006
|
XXXXX
FARGO BANK, N.A., not in its individual capacity, but solely as Trust
Administrator for the MASTR Asset Backed Securities Trust 2006-NC3,
Mortgage Pass-Through Certificates
|
||||||
|
By:
|
||||||
|
Authorized
Officer
|
||||||
CERTIFICATE
OF AUTHENTICATION
This
is
one of the Certificates referred to in the within-mentioned
Agreement.
|
XXXXX
FARGO BANK, N.A.,
as
Trust Administrator
|
|
|
By:
|
|
|
Authorized
Signatory
|
|
ABBREVIATIONS
The
following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
|
TEN
COM -
|
as
tenants in common
|
UNIF
GIFT MIN ACT -
|
Custodian
__________________
(Cust)
(Minor)
under
Uniform Gifts
to
Minors Act
__________________
(State)
|
|
TEN
ENT -
|
as
tenants by the entireties
|
||
|
JT
TEN -
|
as
joint tenants with right
of
survivorship and not as
tenants
in common
|
Additional
abbreviations may also be used though not in the above list.
ASSIGNMENT
FOR
VALUE
RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
|
.
|
(Please
print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I
(we)
further direct the Trust Administrator to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
|
.
|
|
Dated:
|
|
|
Signature
by or on behalf of assignor
|
|
|
Signature
Guaranteed
|
DISTRIBUTION
INSTRUCTIONS
The
assignee should include the following for purposes of distribution:
|
Distributions
shall be made, by wire transfer or otherwise, in immediately available
|
|||||||
|
funds
to
|
|||||||
|
for
the account of
|
|||||||
|
account
number
|
or,
if mailed by check, to
|
||||||
|
Applicable
statements should be mailed to
|
|||||||
|
This
information is provided by
|
|||||||
|
assignee
named above, or
|
|||||||
|
its
agent.
|
|||||||
EXHIBIT
A-M-7
FORM
OF
CLASS M-7 CERTIFICATE
UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRUST ADMINISTRATOR OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE
OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
SOLELY
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986
AS
AMENDED (THE “CODE”).
THIS
CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS M-1
CERTIFICATES, THE CLASS M-2 CERTIFICATES, THE CLASS M-3 CERTIFICATES, THE CLASS
M-4 CERTIFICATES, THE CLASS M-5 CERTIFICATES AND THE CLASS M-6 CERTIFICATES
TO
THE EXTENT DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO
HEREIN.
THE
HOLDER OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE REPRESENTATION
SET
FORTH IN SECTION 5.02 (c) OF THE AGREEMENT.
|
Series:
2006-NC3
Pass-Through
Rate: Variable
Cut-off
Date and date of Pooling and Servicing Agreement: December 1,
2006
First
Distribution Date: January 25, 2007
No.
1
|
Aggregate
Certificate Principal Balance of the Class M-7 Certificates as of
the
Issue Date: $12,380,000.00
Denomination:
$12,380,000.00
Servicer:
Barclays Capital Real Estate Inc. d/b/a HomEq Servicing
Master
Servicer and Trust Administrator: Xxxxx Fargo Bank, N.A.
Custodian:
Deutsche Bank National Trust Company
Trustee:
U.S. Bank National Association
Issue
Date: December 28, 2006
CUSIP:
00000XXX0
|
DISTRIBUTIONS
IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE MAY BE
MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE
PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE
AS
THE DENOMINATION OF THIS CERTIFICATE.
MORTGAGE
PASS-THROUGH CERTIFICATE
evidencing
a beneficial ownership interest in a portion of a Trust Fund (the “Trust Fund”)
consisting primarily of a pool of conventional one- to four-family, fixed-rate
and adjustable-rate, first and second lien mortgage loans (the “Mortgage Loans”)
formed and sold by
MORTGAGE
ASSET SECURITIZATION TRANSACTIONS, INC.
THIS
CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN MORTGAGE ASSET
SECURITIZATION TRANSACTIONS, INC., THE MASTER SERVICER, THE TRUST ADMINISTRATOR,
THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
NOR
THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF
THE UNITED STATES.
This
certifies that Cede & Co. is the registered owner of a Percentage Interest
(obtained by dividing the denomination of this Certificate by the aggregate
Certificate Principal Balance of the Class M-7 Certificates as of the Issue
Date) in that certain beneficial ownership interest evidenced by all the Class
M-7 Certificates in a REMIC created pursuant to a Pooling and Servicing
Agreement, dated as specified above (the “Agreement”), among Mortgage Asset
Securitization Transactions, Inc. (hereinafter called the “Depositor,” which
term includes any successor entity under the Agreement), the Master Servicer,
the Trust Administrator and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is
bound.
Pursuant
to the terms of the Agreement, distributions will be made on the 25th
day of
each month or, if such 25th
day is
not a Business Day, the Business Day immediately following (a “Distribution
Date”), commencing on the First Distribution Date specified above, to the Person
in whose name this Certificate is registered on the Record Date, in an amount
equal to the product of the Percentage Interest evidenced by this Certificate
and the amount required to be distributed to the Holders of Class M-7
Certificates on such Distribution Date pursuant to the Agreement.
All
distributions to the Holder of this Certificate under the Agreement will be
made
or caused to be made by the Trust Administrator by wire transfer in immediately
available funds to the account of the Person entitled thereto if such Person
shall have so notified the Trust Administrator in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and
is
the registered owner of Class M-7 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or
(ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
M-7 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear
on
the Certificate Register. Notwithstanding the above, the final distribution
on
this Certificate will be made after due notice by the Trust Administrator of
the
pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trust Administrator for
that purpose as provided in the Agreement.
The
Pass-Through Rate applicable to the calculation of interest payable with respect
to this Certificate on any Distribution Date shall equal a rate per annum equal
to the lesser of (i) the related Formula Rate for such Distribution Date and
(ii) the related Net WAC Rate for such Distribution Date.
This
Certificate is one of a duly authorized issue of Certificates designated as
Mortgage Pass-Through Certificates of the Series specified on the face hereof
(herein called the “Certificates”) and representing a Percentage Interest in the
Class of Certificates specified on the face hereof equal to the denomination
specified on the face hereof divided by the aggregate Certificate Principal
Balance of the Class of Certificates specified on the face hereof.
The
Certificates are limited in right of payment to certain collections and
recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the Agreement. As provided in the Agreement, withdrawals from
the
Distribution Account may be made from time to time for purposes other than
distributions to Certificateholders, such purposes including reimbursement
of
advances made, or certain expenses incurred, with respect to the Mortgage
Loans.
The
Agreement permits, with certain exceptions therein provided, the amendment
thereof and the modification of the rights and obligations of the Depositor,
the
Master Servicer, the Servicer, the Trust Administrator, the Trustee and the
NIMS
Insurer, if any, the rights of the Certificateholders under the Agreement at
any
time by the Depositor, the Master Servicer, the Servicer, the Trust
Administrator, the Trustee and the NIMS Insurer, if any, without the consent
of
the Certificateholders or with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights as further set forth in the
Agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent
is
made upon this Certificate. The Agreement also permits the amendment thereof,
in
certain limited circumstances, without the consent of the Holders of any of
the
Certificates.
As
provided in the Agreement and subject to certain limitations therein set forth,
the transfer of this Certificate is registrable in the Certificate Register
upon
surrender of this Certificate for registration of transfer at the offices or
agencies appointed by the Trust Administrator as provided in the Agreement,
duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trust Administrator duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest
will
be issued to the designated transferee or transferees.
The
holder of this Certificate shall be deemed to have made the representation
set
forth in Section 5.02 (c) of the Pooling & Servicing Agreement.
The
Certificates are issuable in fully registered form only without coupons in
Classes and denominations representing Percentage Interests specified in the
Agreement. As provided in the Agreement and subject to certain limitations
therein set forth, the Certificates are exchangeable for new Certificates of
the
same Class in authorized denominations evidencing the same aggregate Percentage
Interest, as requested by the Holder surrendering the same. No service charge
will be made for any such registration of transfer or exchange of Certificates,
but the Trust Administrator may require payment of a sum sufficient to cover
any
tax or other governmental charge that may be imposed in connection with any
transfer or exchange of Certificates.
The
Depositor, the Master Servicer, the Trust Administrator, the Trustee and any
agent of the Depositor, the Master Servicer, the Trust Administrator or the
Trustee may treat the Person in whose name this Certificate is registered as
the
owner hereof for all purposes, and none of the Depositor, the Master Servicer,
the Trust Administrator, the Trustee nor any such agent shall be affected by
notice to the contrary.
The
obligations created by the Agreement and the Trust Fund created thereby shall
terminate upon payment to the Certificateholders of all amounts held by the
Trust Administrator and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of
all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided
in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans and REO Properties remaining in the
Trust Fund at the time of purchase being less than or equal to 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
Date.
The
recitals contained herein shall be taken as statements of the Depositor and
the
Trust Administrator assumes no responsibility for their
correctness.
Unless
the certificate of authentication hereon has been executed by the Trust
Administrator, by manual signature, this Certificate shall not be entitled
to
any benefit under the Agreement or be valid for any purpose.
IN
WITNESS WHEREOF, the Trust Administrator has caused this Certificate to be
duly
executed.
Dated:
December ___, 2006
|
XXXXX
FARGO BANK, N.A., not in its individual capacity, but solely as Trust
Administrator for the MASTR Asset Backed Securities Trust 2006-NC3,
Mortgage Pass-Through Certificates
|
||||||
|
By:
|
||||||
|
Authorized
Officer
|
||||||
CERTIFICATE
OF AUTHENTICATION
This
is
one of the Certificates referred to in the within-mentioned
Agreement.
|
XXXXX
FARGO BANK, N.A.,
as
Trust Administrator
|
|
|
By:
|
|
|
Authorized
Signatory
|
|
ABBREVIATIONS
The
following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
|
TEN
COM -
|
as
tenants in common
|
UNIF
GIFT MIN ACT -
|
Custodian
__________________
(Cust)
(Minor)
under
Uniform Gifts
to
Minors Act
__________________
(State)
|
|
TEN
ENT -
|
as
tenants by the entireties
|
||
|
JT
TEN -
|
as
joint tenants with right
of
survivorship and not as
tenants
in common
|
Additional
abbreviations may also be used though not in the above list.
ASSIGNMENT
FOR
VALUE
RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
|
.
|
(Please
print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I
(we)
further direct the Trust Administrator to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
|
.
|
|
Dated:
|
|
|
Signature
by or on behalf of assignor
|
|
|
Signature
Guaranteed
|
DISTRIBUTION
INSTRUCTIONS
The
assignee should include the following for purposes of distribution:
|
Distributions
shall be made, by wire transfer or otherwise, in immediately available
|
|||||||
|
funds
to
|
|||||||
|
for
the account of
|
|||||||
|
account
number
|
or,
if mailed by check, to
|
||||||
|
Applicable
statements should be mailed to
|
|||||||
|
This
information is provided by
|
|||||||
|
assignee
named above, or
|
|||||||
|
its
agent.
|
|||||||
EXHIBIT
A-M-8
FORM
OF
CLASS M-8 CERTIFICATE
UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRUST ADMINISTRATOR OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE
OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
SOLELY
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986
AS
AMENDED (THE “CODE”).
THIS
CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS M-1
CERTIFICATES, THE CLASS M-2 CERTIFICATES, THE CLASS M-3 CERTIFICATES, THE CLASS
M-4 CERTIFICATES, THE CLASS M-5 CERTIFICATES, THE CLASS M-6 CERTIFICATES AND
THE
CLASS M-7 CERTIFICATES TO THE EXTENT DESCRIBED IN THE POOLING AND SERVICING
AGREEMENT REFERRED TO HEREIN.
THE
HOLDER OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE REPRESENTATION
SET
FORTH IN SECTION 5.02 (c) OF THE AGREEMENT.
|
Series:
2006-NC3
Pass-Through
Rate: Variable
Cut-off
Date and date of Pooling and Servicing Agreement: December 1,
2006
First
Distribution Date: January 25, 2007
No.
1
|
Aggregate
Certificate Principal Balance of the Class M-8 Certificates as of
the
Issue Date: $8,769,000.00
Denomination:
$8,769,000.00
Servicer:
Barclays Capital Real Estate Inc. d/b/a HomEq Servicing
Master
Servicer and Trust Administrator: Xxxxx Fargo Bank, N.A.
Custodian:
Deutsche Bank National Trust Company
Trustee:
U.S. Bank National Association
Issue
Date: December 28, 2006
CUSIP:
00000XXX0
|
DISTRIBUTIONS
IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE MAY BE
MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE
PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE
AS
THE DENOMINATION OF THIS CERTIFICATE.
MORTGAGE
PASS-THROUGH CERTIFICATE
evidencing
a beneficial ownership interest in a portion of a Trust Fund (the “Trust Fund”)
consisting primarily of a pool of conventional one- to four-family, fixed-rate
and adjustable-rate, first and second lien mortgage loans (the “Mortgage Loans”)
formed and sold by
MORTGAGE
ASSET SECURITIZATION TRANSACTIONS, INC.
THIS
CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN MORTGAGE ASSET
SECURITIZATION TRANSACTIONS, INC., THE
MASTER SERVICER, THE TRUST ADMINISTRATOR,
THE
TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR
THE
UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF
THE
UNITED STATES.
This
certifies that Cede & Co. is the registered owner of a Percentage Interest
(obtained by dividing the denomination of this Certificate by the aggregate
Certificate Principal Balance of the Class M-8 Certificates as of the Issue
Date) in that certain beneficial ownership interest evidenced by all the Class
M-8 Certificates in a REMIC created pursuant to a Pooling and Servicing
Agreement, dated as specified above (the “Agreement”), among Mortgage Asset
Securitization Transactions, Inc. (hereinafter called the “Depositor,” which
term includes any successor entity under the Agreement), the Master Servicer,
the Trust Administrator and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is
bound.
Pursuant
to the terms of the Agreement, distributions will be made on the 25th
day of
each month or, if such 25th
day is
not a Business Day, the Business Day immediately following (a “Distribution
Date”), commencing on the First Distribution Date specified above, to the Person
in whose name this Certificate is registered on the Record Date, in an amount
equal to the product of the Percentage Interest evidenced by this Certificate
and the amount required to be distributed to the Holders of Class M-8
Certificates on such Distribution Date pursuant to the Agreement.
All
distributions to the Holder of this Certificate under the Agreement will be
made
or caused to be made by the Trust Administrator by wire transfer in immediately
available funds to the account of the Person entitled thereto if such Person
shall have so notified the Trust Administrator in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and
is
the registered owner of Class M-8 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or
(ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
M-8 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear
on
the Certificate Register. Notwithstanding the above, the final distribution
on
this Certificate will be made after due notice by the Trust Administrator of
the
pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trust Administrator for
that purpose as provided in the Agreement.
The
Pass-Through Rate applicable to the calculation of interest payable with respect
to this Certificate on any Distribution Date shall equal a rate per annum equal
to the lesser of (i) the related Formula Rate for such Distribution Date and
(ii) the related Net WAC Rate for such Distribution Date.
This
Certificate is one of a duly authorized issue of Certificates designated as
Mortgage Pass-Through Certificates of the Series specified on the face hereof
(herein called the “Certificates”) and representing a Percentage Interest in the
Class of Certificates specified on the face hereof equal to the denomination
specified on the face hereof divided by the aggregate Certificate Principal
Balance of the Class of Certificates specified on the face hereof.
The
Certificates are limited in right of payment to certain collections and
recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the Agreement. As provided in the Agreement, withdrawals from
the
Distribution Account may be made from time to time for purposes other than
distributions to Certificateholders, such purposes including reimbursement
of
advances made, or certain expenses incurred, with respect to the Mortgage
Loans.
The
Agreement permits, with certain exceptions therein provided, the amendment
thereof and the modification of the rights and obligations of the Depositor,
the
Master Servicer, the Servicer, the Trust Administrator, the Trustee and the
NIMS
Insurer, if any, the rights of the Certificateholders under the Agreement at
any
time by the Depositor, the Master Servicer, the Servicer, the Trust
Administrator, the Trustee and the NIMS Insurer, if any, without the consent
of
the Certificateholders or with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights as further set forth in the
Agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent
is
made upon this Certificate. The Agreement also permits the amendment thereof,
in
certain limited circumstances, without the consent of the Holders of any of
the
Certificates.
As
provided in the Agreement and subject to certain limitations therein set forth,
the transfer of this Certificate is registrable in the Certificate Register
upon
surrender of this Certificate for registration of transfer at the offices or
agencies appointed by the Trust Administrator as provided in the Agreement,
duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trust Administrator duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest
will
be issued to the designated transferee or transferees.
The
holder of this Certificate shall be deemed to have made the representation
set
forth in Section 5.02 (c) of the Pooling & Servicing Agreement.
The
Certificates are issuable in fully registered form only without coupons in
Classes and denominations representing Percentage Interests specified in the
Agreement. As provided in the Agreement and subject to certain limitations
therein set forth, the Certificates are exchangeable for new Certificates of
the
same Class in authorized denominations evidencing the same aggregate Percentage
Interest, as requested by the Holder surrendering the same. No service charge
will be made for any such registration of transfer or exchange of Certificates,
but the Trust Administrator may require payment of a sum sufficient to cover
any
tax or other governmental charge that may be imposed in connection with any
transfer or exchange of Certificates.
The
Depositor, the Master Servicer, the Trust Administrator, the Trustee and any
agent of the Depositor, the Master Servicer, the Trust Administrator or the
Trustee may treat the Person in whose name this Certificate is registered as
the
owner hereof for all purposes, and none of the Depositor, the Master Servicer,
the Trust Administrator, the Trustee nor any such agent shall be affected by
notice to the contrary.
The
obligations created by the Agreement and the Trust Fund created thereby shall
terminate upon payment to the Certificateholders of all amounts held by the
Trust Administrator and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of
all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided
in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans and REO Properties remaining in the
Trust Fund at the time of purchase being less than or equal to 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
Date.
The
recitals contained herein shall be taken as statements of the Depositor and
the
Trust Administrator assumes no responsibility for their
correctness.
Unless
the certificate of authentication hereon has been executed by the Trust
Administrator, by manual signature, this Certificate shall not be entitled
to
any benefit under the Agreement or be valid for any purpose.
IN
WITNESS WHEREOF, the Trust Administrator has caused this Certificate to be
duly
executed.
Dated:
December ___, 2006
|
XXXXX
FARGO BANK, N.A., not in its individual capacity, but solely as Trust
Administrator for the MASTR Asset Backed Securities Trust 2006-NC3,
Mortgage Pass-Through Certificates
|
||||||
|
By:
|
||||||
|
Authorized
Officer
|
||||||
CERTIFICATE
OF AUTHENTICATION
This
is
one of the Certificates referred to in the within-mentioned
Agreement.
|
XXXXX
FARGO BANK, N.A.,
as
Trust Administrator
|
|
|
By:
|
|
|
Authorized
Signatory
|
|
ABBREVIATIONS
The
following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
|
TEN
COM -
|
as
tenants in common
|
UNIF
GIFT MIN ACT -
|
Custodian
__________________
(Cust)
(Minor)
under
Uniform Gifts
to
Minors Act
__________________
(State)
|
|
TEN
ENT -
|
as
tenants by the entireties
|
||
|
JT
TEN -
|
as
joint tenants with right
of
survivorship and not as
tenants
in common
|
Additional
abbreviations may also be used though not in the above list.
ASSIGNMENT
FOR
VALUE
RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
|
.
|
(Please
print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I
(we)
further direct the Trust Administrator to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
|
.
|
|
Dated:
|
|
|
Signature
by or on behalf of assignor
|
|
|
Signature
Guaranteed
|
DISTRIBUTION
INSTRUCTIONS
The
assignee should include the following for purposes of distribution:
|
Distributions
shall be made, by wire transfer or otherwise, in immediately available
|
|||||||
|
funds
to
|
|||||||
|
for
the account of
|
|||||||
|
account
number
|
or,
if mailed by check, to
|
||||||
|
Applicable
statements should be mailed to
|
|||||||
|
This
information is provided by
|
|||||||
|
assignee
named above, or
|
|||||||
|
its
agent.
|
|||||||
EXHIBIT
A-M-9
FORM
OF
CLASS M-9 CERTIFICATE
UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRUST ADMINISTRATOR OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE
OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
SOLELY
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986
AS
AMENDED (THE “CODE”).
THIS
CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS M-1
CERTIFICATES, THE CLASS M-2 CERTIFICATES, THE CLASS M-3 CERTIFICATES, THE CLASS
M-4 CERTIFICATES, THE CLASS M-5 CERTIFICATES, THE CLASS M-6 CERTIFICATES, THE
CLASS M-7 CERTIFICATES AND THE CLASS M-8 CERTIFICATES TO THE EXTENT DESCRIBED
IN
THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.
THE
HOLDER OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE REPRESENTATION
SET
FORTH IN SECTION 5.02 (c) OF THE AGREEMENT.
|
Series:
2006-NC3
Pass-Through
Rate: Variable
Cut-off
Date and date of Pooling and Servicing Agreement: December 1,
2006
First
Distribution Date: January 25, 2007
No.
1
|
Aggregate
Certificate Principal Balance of the Class M-9 Certificates as of
the
Issue Date: $11,864,000.00
Denomination:
$11,864,000.00
Servicer:
Barclays Capital Real Estate Inc. d/b/a HomEq Servicing
Master
Servicer and Trust Administrator: Xxxxx Fargo Bank, N.A.
Custodian:
Deutsche Bank National Trust Company
Trustee:
U.S. Bank National Association
Issue
Date: December 28, 2006
CUSIP:
00000XXX0
|
DISTRIBUTIONS
IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE MAY BE
MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE
PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE
AS
THE DENOMINATION OF THIS CERTIFICATE.
MORTGAGE
PASS-THROUGH CERTIFICATE
evidencing
a beneficial ownership interest in a portion of a Trust Fund (the “Trust Fund”)
consisting primarily of a pool of conventional one- to four-family, fixed-rate
and adjustable-rate, first and second lien mortgage loans (the “Mortgage Loans”)
formed and sold by
MORTGAGE
ASSET SECURITIZATION TRANSACTIONS, INC.
THIS
CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN MORTGAGE ASSET
SECURITIZATION TRANSACTIONS, INC., THE MASTER SERVICER, THE TRUST ADMINISTRATOR,
THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
NOR
THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF
THE UNITED STATES.
This
certifies that Cede & Co. is the registered owner of a Percentage Interest
(obtained by dividing the denomination of this Certificate by the aggregate
Certificate Principal Balance of the Class M-9 Certificates as of the Issue
Date) in that certain beneficial ownership interest evidenced by all the Class
M-9 Certificates in a REMIC created pursuant to a Pooling and Servicing
Agreement, dated as specified above (the “Agreement”), among Mortgage Asset
Securitization Transactions, Inc. (hereinafter called the “Depositor,” which
term includes any successor entity under the Agreement), the Master Servicer,
the Trust Administrator and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is
bound.
Pursuant
to the terms of the Agreement, distributions will be made on the 25th
day of
each month or, if such 25th
day is
not a Business Day, the Business Day immediately following (a “Distribution
Date”), commencing on the First Distribution Date specified above, to the Person
in whose name this Certificate is registered on the Record Date, in an amount
equal to the product of the Percentage Interest evidenced by this Certificate
and the amount required to be distributed to the Holders of Class M-9
Certificates on such Distribution Date pursuant to the Agreement.
All
distributions to the Holder of this Certificate under the Agreement will be
made
or caused to be made by the Trust Administrator by wire transfer in immediately
available funds to the account of the Person entitled thereto if such Person
shall have so notified the Trust Administrator in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and
is
the registered owner of Class M-9 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or
(ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
M-9 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear
on
the Certificate Register. Notwithstanding the above, the final distribution
on
this Certificate will be made after due notice by the Trust Administrator of
the
pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trust Administrator for
that purpose as provided in the Agreement.
The
Pass-Through Rate applicable to the calculation of interest payable with respect
to this Certificate on any Distribution Date shall equal a rate per annum equal
to the lesser of (i) the related Formula Rate for such Distribution Date and
(ii) the related Net WAC Rate for such Distribution Date.
This
Certificate is one of a duly authorized issue of Certificates designated as
Mortgage Pass-Through Certificates of the Series specified on the face hereof
(herein called the “Certificates”) and representing a Percentage Interest in the
Class of Certificates specified on the face hereof equal to the denomination
specified on the face hereof divided by the aggregate Certificate Principal
Balance of the Class of Certificates specified on the face hereof.
The
Certificates are limited in right of payment to certain collections and
recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the Agreement. As provided in the Agreement, withdrawals from
the
Distribution Account may be made from time to time for purposes other than
distributions to Certificateholders, such purposes including reimbursement
of
advances made, or certain expenses incurred, with respect to the Mortgage
Loans.
The
Agreement permits, with certain exceptions therein provided, the amendment
thereof and the modification of the rights and obligations of the Depositor,
the
Master Servicer, the Servicer, the Trust Administrator, the Trustee and the
NIMS
Insurer, if any, the rights of the Certificateholders under the Agreement at
any
time by the Depositor, the Master Servicer, the Servicer, the Trust
Administrator, the Trustee and the NIMS Insurer, if any, without the consent
of
the Certificateholders or with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights as further set forth in the
Agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent
is
made upon this Certificate. The Agreement also permits the amendment thereof,
in
certain limited circumstances, without the consent of the Holders of any of
the
Certificates.
As
provided in the Agreement and subject to certain limitations therein set forth,
the transfer of this Certificate is registrable in the Certificate Register
upon
surrender of this Certificate for registration of transfer at the offices or
agencies appointed by the Trust Administrator as provided in the Agreement,
duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trust Administrator duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest
will
be issued to the designated transferee or transferees.
The
holder of this Certificate shall be deemed to have made the representation
set
forth in Section 5.02 (c) of the Pooling & Servicing Agreement.
The
Certificates are issuable in fully registered form only without coupons in
Classes and denominations representing Percentage Interests specified in the
Agreement. As provided in the Agreement and subject to certain limitations
therein set forth, the Certificates are exchangeable for new Certificates of
the
same Class in authorized denominations evidencing the same aggregate Percentage
Interest, as requested by the Holder surrendering the same. No service charge
will be made for any such registration of transfer or exchange of Certificates,
but the Trust Administrator may require payment of a sum sufficient to cover
any
tax or other governmental charge that may be imposed in connection with any
transfer or exchange of Certificates.
The
Depositor, the Master Servicer, the Trust Administrator, the Trustee and any
agent of the Depositor, the Master Servicer, the Trust Administrator or the
Trustee may treat the Person in whose name this Certificate is registered as
the
owner hereof for all purposes, and none of the Depositor, the Master Servicer,
the Trust Administrator, the Trustee nor any such agent shall be affected by
notice to the contrary.
The
obligations created by the Agreement and the Trust Fund created thereby shall
terminate upon payment to the Certificateholders of all amounts held by the
Trust Administrator and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of
all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided
in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans and REO Properties remaining in the
Trust Fund at the time of purchase being less than or equal to 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
Date.
The
recitals contained herein shall be taken as statements of the Depositor and
the
Trust Administrator assumes no responsibility for their
correctness.
Unless
the certificate of authentication hereon has been executed by the Trust
Administrator, by manual signature, this Certificate shall not be entitled
to
any benefit under the Agreement or be valid for any purpose.
IN
WITNESS WHEREOF, the Trust Administrator has caused this Certificate to be
duly
executed.
Dated:
December ___, 2006
|
XXXXX
FARGO BANK, N.A., not in its individual capacity, but solely as Trust
Administrator for the MASTR Asset Backed Securities Trust 2006-NC3,
Mortgage Pass-Through Certificates
|
||||||
|
By:
|
||||||
|
Authorized
Officer
|
||||||
CERTIFICATE
OF AUTHENTICATION
This
is
one of the Certificates referred to in the within-mentioned
Agreement.
|
XXXXX
FARGO BANK, N.A.,
as
Trust Administrator
|
|
|
By:
|
|
|
Authorized
Signatory
|
|
ABBREVIATIONS
The
following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
|
TEN
COM -
|
as
tenants in common
|
UNIF
GIFT MIN ACT -
|
Custodian
__________________
(Cust)
(Minor)
under
Uniform Gifts
to
Minors Act
__________________
(State)
|
|
TEN
ENT -
|
as
tenants by the entireties
|
||
|
JT
TEN -
|
as
joint tenants with right
of
survivorship and not as
tenants
in common
|
Additional
abbreviations may also be used though not in the above list.
ASSIGNMENT
FOR
VALUE
RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
|
.
|
(Please
print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I
(we)
further direct the Trust Administrator to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
|
.
|
|
Dated:
|
|
|
Signature
by or on behalf of assignor
|
|
|
Signature
Guaranteed
|
DISTRIBUTION
INSTRUCTIONS
The
assignee should include the following for purposes of distribution:
|
Distributions
shall be made, by wire transfer or otherwise, in immediately available
|
|||||||
|
funds
to
|
|||||||
|
for
the account of
|
|||||||
|
account
number
|
or,
if mailed by check, to
|
||||||
|
Applicable
statements should be mailed to
|
|||||||
|
This
information is provided by
|
|||||||
|
assignee
named above, or
|
|||||||
|
its
agent.
|
|||||||
EXHIBIT
A-M-10
FORM
OF
CLASS M-10 CERTIFICATE
UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRUST ADMINISTRATOR OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE
OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
SOLELY
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986
AS
AMENDED (THE “CODE”).
THIS
CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS M-1
CERTIFICATES, THE CLASS M-2 CERTIFICATES, THE CLASS M-3 CERTIFICATES, THE CLASS
M-4 CERTIFICATES, THE CLASS M-5 CERTIFICATES, THE CLASS M-6 CERTIFICATES, THE
CLASS M-7 CERTIFICATES, THE CLASS M-8 CERTIFICATES AND THE CLASS M-9
CERTIFICATES TO THE EXTENT DESCRIBED IN THE POOLING AND SERVICING AGREEMENT
REFERRED TO HEREIN.
THE
HOLDER OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE REPRESENTATION
SET
FORTH IN SECTION 5.02 (c) OF THE AGREEMENT.
|
Series:
2006-NC3
Pass-Through
Rate: Variable
Cut-off
Date and date of Pooling and Servicing Agreement: December 1,
2006
First
Distribution Date: January 25, 2007
No.
1
|
Aggregate
Certificate Principal Balance of the Class M-10 Certificates as of
the
Issue Date: $15,475,000.00
Denomination:
$15,475,000.00
Servicer:
Barclays Capital Real Estate Inc. d/b/a HomEq Servicing
Master
Servicer and Trust Administrator: Xxxxx Fargo Bank, N.A.
Custodian:
Deutsche Bank National Trust Company
Trustee:
U.S. Bank National Association
Issue
Date: December 28, 2006
CUSIP:
00000XXX0
|
DISTRIBUTIONS
IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE MAY BE
MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE
PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE
AS
THE DENOMINATION OF THIS CERTIFICATE.
MORTGAGE
PASS-THROUGH CERTIFICATE
evidencing
a beneficial ownership interest in a portion of a Trust Fund (the “Trust Fund”)
consisting primarily of a pool of conventional one- to four-family, fixed-rate
and adjustable-rate, first and second lien mortgage loans (the “Mortgage Loans”)
formed and sold by
MORTGAGE
ASSET SECURITIZATION TRANSACTIONS, INC.
THIS
CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN MORTGAGE ASSET
SECURITIZATION TRANSACTIONS, INC., THE MASTER SERVICER, THE TRUST ADMINISTRATOR,
THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
NOR
THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF
THE UNITED STATES.
This
certifies that Cede & Co. is the registered owner of a Percentage Interest
(obtained by dividing the denomination of this Certificate by the aggregate
Certificate Principal Balance of the Class M-10 Certificates as of the Issue
Date) in that certain beneficial ownership interest evidenced by all the Class
M-10 Certificates in a REMIC created pursuant to a Pooling and Servicing
Agreement, dated as specified above (the “Agreement”), among Mortgage Asset
Securitization Transactions, Inc. (hereinafter called the “Depositor,” which
term includes any successor entity under the Agreement), the Master Servicer,
the Trust Administrator and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is
bound.
Pursuant
to the terms of the Agreement, distributions will be made on the 25th
day of
each month or, if such 25th
day is
not a Business Day, the Business Day immediately following (a “Distribution
Date”), commencing on the First Distribution Date specified above, to the Person
in whose name this Certificate is registered on the Record Date, in an amount
equal to the product of the Percentage Interest evidenced by this Certificate
and the amount required to be distributed to the Holders of Class M-10
Certificates on such Distribution Date pursuant to the Agreement.
All
distributions to the Holder of this Certificate under the Agreement will be
made
or caused to be made by the Trust Administrator by wire transfer in immediately
available funds to the account of the Person entitled thereto if such Person
shall have so notified the Trust Administrator in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and
is
the registered owner of Class M-10 Certificates the aggregate initial
Certificate Principal Balance of which is in excess of the lesser of (i)
$5,000,000 or (ii) two-thirds of the aggregate initial Certificate Principal
Balance of the Class M-10 Certificates, or otherwise by check mailed by first
class mail to the address of the Person entitled thereto, as such name and
address shall appear on the Certificate Register. Notwithstanding the above,
the
final distribution on this Certificate will be made after due notice by the
Trust Administrator of the pendency of such distribution and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Trust Administrator for that purpose as provided in the
Agreement.
The
Pass-Through Rate applicable to the calculation of interest payable with respect
to this Certificate on any Distribution Date shall equal a rate per annum equal
to the lesser of (i) the related Formula Rate for such Distribution Date and
(ii) the related Net WAC Rate for such Distribution Date.
This
Certificate is one of a duly authorized issue of Certificates designated as
Mortgage Pass-Through Certificates of the Series specified on the face hereof
(herein called the “Certificates”) and representing a Percentage Interest in the
Class of Certificates specified on the face hereof equal to the denomination
specified on the face hereof divided by the aggregate Certificate Principal
Balance of the Class of Certificates specified on the face hereof.
The
Certificates are limited in right of payment to certain collections and
recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the Agreement. As provided in the Agreement, withdrawals from
the
Distribution Account may be made from time to time for purposes other than
distributions to Certificateholders, such purposes including reimbursement
of
advances made, or certain expenses incurred, with respect to the Mortgage
Loans.
The
Agreement permits, with certain exceptions therein provided, the amendment
thereof and the modification of the rights and obligations of the Depositor,
the
Master Servicer, the Servicer, the Trust Administrator, the Trustee and the
NIMS
Insurer, if any, the rights of the Certificateholders under the Agreement at
any
time by the Depositor, the Master Servicer, the Servicer, the Trust
Administrator, the Trustee and the NIMS Insurer, if any, without the consent
of
the Certificateholders or with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights as further set forth in the
Agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent
is
made upon this Certificate. The Agreement also permits the amendment thereof,
in
certain limited circumstances, without the consent of the Holders of any of
the
Certificates.
As
provided in the Agreement and subject to certain limitations therein set forth,
the transfer of this Certificate is registrable in the Certificate Register
upon
surrender of this Certificate for registration of transfer at the offices or
agencies appointed by the Trust Administrator as provided in the Agreement,
duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trust Administrator duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest
will
be issued to the designated transferee or transferees.
The
holder of this Certificate shall be deemed to have made the representation
set
forth in Section 5.02 (c) of the Pooling & Servicing Agreement.
The
Certificates are issuable in fully registered form only without coupons in
Classes and denominations representing Percentage Interests specified in the
Agreement. As provided in the Agreement and subject to certain limitations
therein set forth, the Certificates are exchangeable for new Certificates of
the
same Class in authorized denominations evidencing the same aggregate Percentage
Interest, as requested by the Holder surrendering the same. No service charge
will be made for any such registration of transfer or exchange of Certificates,
but the Trust Administrator may require payment of a sum sufficient to cover
any
tax or other governmental charge that may be imposed in connection with any
transfer or exchange of Certificates.
The
Depositor, the Master Servicer, the Trust Administrator, the Trustee and any
agent of the Depositor, the Master Servicer, the Trust Administrator or the
Trustee may treat the Person in whose name this Certificate is registered as
the
owner hereof for all purposes, and none of the Depositor, the Master Servicer,
the Trust Administrator, the Trustee nor any such agent shall be affected by
notice to the contrary.
The
obligations created by the Agreement and the Trust Fund created thereby shall
terminate upon payment to the Certificateholders of all amounts held by the
Trust Administrator and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of
all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided
in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans and REO Properties remaining in the
Trust Fund at the time of purchase being less than or equal to 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
Date.
The
recitals contained herein shall be taken as statements of the Depositor and
the
Trust Administrator assumes no responsibility for their
correctness.
Unless
the certificate of authentication hereon has been executed by the Trust
Administrator, by manual signature, this Certificate shall not be entitled
to
any benefit under the Agreement or be valid for any purpose.
IN
WITNESS WHEREOF, the Trust Administrator has caused this Certificate to be
duly
executed.
Dated:
December ___, 2006
|
XXXXX
FARGO BANK, N.A., not in its individual capacity, but solely as Trust
Administrator for the MASTR Asset Backed Securities Trust 2006-NC3,
Mortgage Pass-Through Certificates
|
||||||
|
By:
|
||||||
|
Authorized
Officer
|
||||||
CERTIFICATE
OF AUTHENTICATION
This
is
one of the Certificates referred to in the within-mentioned
Agreement.
|
XXXXX
FARGO BANK, N.A.,
as
Trust Administrator
|
|
|
By:
|
|
|
Authorized
Signatory
|
|
ABBREVIATIONS
The
following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
|
TEN
COM -
|
as
tenants in common
|
UNIF
GIFT MIN ACT -
|
Custodian
__________________
(Cust)
(Minor)
under
Uniform Gifts
to
Minors Act
__________________
(State)
|
|
TEN
ENT -
|
as
tenants by the entireties
|
||
|
JT
TEN -
|
as
joint tenants with right
of
survivorship and not as
tenants
in common
|
Additional
abbreviations may also be used though not in the above list.
ASSIGNMENT
FOR
VALUE
RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
|
.
|
(Please
print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I
(we)
further direct the Trust Administrator to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
|
.
|
|
Dated:
|
|
|
Signature
by or on behalf of assignor
|
|
|
Signature
Guaranteed
|
DISTRIBUTION
INSTRUCTIONS
The
assignee should include the following for purposes of distribution:
|
Distributions
shall be made, by wire transfer or otherwise, in immediately available
|
|||||||
|
funds
to
|
|||||||
|
for
the account of
|
|||||||
|
account
number
|
or,
if mailed by check, to
|
||||||
|
Applicable
statements should be mailed to
|
|||||||
|
This
information is provided by
|
|||||||
|
assignee
named above, or
|
|||||||
|
its
agent.
|
|||||||
EXHIBIT
A-M-11
FORM
OF
CLASS M-11 CERTIFICATE
SOLELY
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986
AS
AMENDED (THE “CODE”).
THIS
CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT
OF
1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE RESOLD
OR
TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT AND LAWS OR IS SOLD
OR
TRANSFERRED IN TRANSACTIONS THAT ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT
AND
UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS
OF SECTION 5.02 OF THE AGREEMENT.
NO
TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
AS
AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT IN COMPLIANCE WITH THE PROCEDURES
DESCRIBED HEREIN.
THIS
CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS M-1
CERTIFICATES, THE CLASS M-2 CERTIFICATES, THE CLASS M-3 CERTIFICATES, THE CLASS
M-4 CERTIFICATES, THE CLASS M-5 CERTIFICATES, THE CLASS M-6 CERTIFICATES, THE
CLASS M-7 CERTIFICATES, THE CLASS M-8 CERTIFICATES, THE CLASS M-9 CERTIFICATES
AND THE CLASS M-10 CERTIFICATES TO THE EXTENT DESCRIBED IN THE POOLING AND
SERVICING AGREEMENT REFERRED TO HEREIN.
|
Series:
2006-NC3
Pass-Through
Rate: Variable
Cut-off
Date and date of Pooling and Servicing Agreement: December 1,
2006
First
Distribution Date: January 25, 2007
No.
1
|
Aggregate
Certificate Principal Balance of the Class M-11 Certificates as of
the
Issue Date: $14,443,000.00
Denomination:
$14,443,000.00
Servicer:
Barclays Capital Real Estate Inc. d/b/a HomEq Servicing
Master
Servicer and Trust Administrator: Xxxxx Fargo Bank, N.A.
Custodian:
Deutsche Bank National Trust Company
Trustee:
U.S. Bank National Association
Issue
Date: December 28, 2006
CUSIP:
00000XXX0
|
DISTRIBUTIONS
IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE MAY BE
MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE
PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE
AS
THE DENOMINATION OF THIS CERTIFICATE.
MORTGAGE
PASS-THROUGH CERTIFICATE
evidencing
a beneficial ownership interest in a portion of a Trust Fund (the “Trust Fund”)
consisting primarily of a pool of conventional one- to four-family, fixed-rate
and adjustable-rate, first and second lien mortgage loans (the “Mortgage Loans”)
formed and sold by
MORTGAGE
ASSET SECURITIZATION TRANSACTIONS, INC.
THIS
CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN MORTGAGE ASSET
SECURITIZATION TRANSACTIONS, INC., THE MASTER SERVICER, THE TRUST ADMINISTRATOR,
THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
NOR
THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF
THE UNITED STATES.
This
certifies that Cede & Co. is the registered owner of a Percentage Interest
(obtained by dividing the denomination of this Certificate by the aggregate
Certificate Principal Balance of the Class M-11 Certificates as of the Issue
Date) in that certain beneficial ownership interest evidenced by all the Class
M-11 Certificates in a REMIC created pursuant to a Pooling and Servicing
Agreement, dated as specified above (the “Agreement”), among Mortgage Asset
Securitization Transactions, Inc. (hereinafter called the “Depositor,” which
term includes any successor entity under the Agreement), the Master Servicer,
the Trust Administrator and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is
bound.
Pursuant
to the terms of the Agreement, distributions will be made on the 25th
day of
each month or, if such 25th
day is
not a Business Day, the Business Day immediately following (a “Distribution
Date”), commencing on the First Distribution Date specified above, to the Person
in whose name this Certificate is registered on the Record Date, in an amount
equal to the product of the Percentage Interest evidenced by this Certificate
and the amount required to be distributed to the Holders of Class M-11
Certificates on such Distribution Date pursuant to the Agreement.
All
distributions to the Holder of this Certificate under the Agreement will be
made
or caused to be made by the Trust Administrator by wire transfer in immediately
available funds to the account of the Person entitled thereto if such Person
shall have so notified the Trust Administrator in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and
is
the registered owner of Class M-11 Certificates the aggregate initial
Certificate Principal Balance of which is in excess of the lesser of (i)
$5,000,000 or (ii) two-thirds of the aggregate initial Certificate Principal
Balance of the Class M-11 Certificates, or otherwise by check mailed by first
class mail to the address of the Person entitled thereto, as such name and
address shall appear on the Certificate Register. Notwithstanding the above,
the
final distribution on this Certificate will be made after due notice by the
Trust Administrator of the pendency of such distribution and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Trust Administrator for that purpose as provided in the
Agreement.
The
Pass-Through Rate applicable to the calculation of interest payable with respect
to this Certificate on any Distribution Date shall equal a rate per annum equal
to the lesser of (i) the related Formula Rate for such Distribution Date and
(ii) the related Net WAC Rate for such Distribution Date.
This
Certificate is one of a duly authorized issue of Certificates designated as
Mortgage Pass-Through Certificates of the Series specified on the face hereof
(herein called the “Certificates”) and representing a Percentage Interest in the
Class of Certificates specified on the face hereof equal to the denomination
specified on the face hereof divided by the aggregate Certificate Principal
Balance of the Class of Certificates specified on the face hereof.
The
Certificates are limited in right of payment to certain collections and
recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the Agreement. As provided in the Agreement, withdrawals from
the
Distribution Account may be made from time to time for purposes other than
distributions to Certificateholders, such purposes including reimbursement
of
advances made, or certain expenses incurred, with respect to the Mortgage
Loans.
The
Agreement permits, with certain exceptions therein provided, the amendment
thereof and the modification of the rights and obligations of the Depositor,
the
Master Servicer, the Servicer, the Trust Administrator, the Trustee and the
NIMS
Insurer, if any, the rights of the Certificateholders under the Agreement at
any
time by the Depositor, the Master Servicer, the Servicer, the Trust
Administrator, the Trustee and the NIMS Insurer, if any, without the consent
of
the Certificateholders or with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights as further set forth in the
Agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent
is
made upon this Certificate. The Agreement also permits the amendment thereof,
in
certain limited circumstances, without the consent of the Holders of any of
the
Certificates.
As
provided in the Agreement and subject to certain limitations therein set forth,
the transfer of this Certificate is registrable in the Certificate Register
upon
surrender of this Certificate for registration of transfer at the offices or
agencies appointed by the Trust Administrator as provided in the Agreement,
duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trust Administrator duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest
will
be issued to the designated transferee or transferees.
No
transfer of this Certificate shall be made unless the transfer is made pursuant
to an effective registration statement under the Securities Act of 1933, as
amended (the “1933 Act”), and an effective registration or qualification under
applicable state securities laws, or is made in a transaction that does not
require such registration or qualification. In the event that such a transfer
of
this Certificate is to be made without registration or qualification, the Trust
Administrator shall require receipt of (i) if such transfer is purportedly
being
made in reliance upon Rule 144A under the 1933 Act, written certifications
from
the Holder of the Certificate desiring to effect the transfer, and from such
Holder's prospective transferee, substantially in the forms attached to the
Agreement as Exhibit F-1, and (ii) in all other cases, an Opinion of Counsel
satisfactory to it that such transfer may be made without such registration
or
qualification (which Opinion of Counsel shall not be an expense of the Trust
Fund or of the Depositor, the Trustee or the Master Servicer, the Trust
Administrator in their respective capacities as such), together with copies
of
the written certification(s) of the Holder of the Certificate desiring to effect
the transfer and/or such Holder's prospective transferee upon which such Opinion
of Counsel is based. None of the Depositor or the Trust Administrator is
obligated to register or qualify the Class of Certificates specified on the
face
hereof under the 1933 Act or any other securities law or to take any action
not
otherwise required under the Agreement to permit the transfer of such
Certificates without registration or qualification. Any Holder desiring to
effect a transfer of this Certificate shall be required to indemnify the
Trustee, the Trust Administrator, the Depositor, the Servicer and the Master
Servicer against any liability that may result if the transfer is not so exempt
or is not made in accordance with such federal and state laws.
No
transfer of this Certificate to a Plan subject to ERISA or Section 4975 of
the
Code, any Person acting, directly or indirectly, on behalf of any such Plan
or
any Person using “Plan Assets” to acquire this Certificate shall be made except
in accordance with Section 5.02(c) of the Agreement.
The
Certificates are issuable in fully registered form only without coupons in
Classes and denominations representing Percentage Interests specified in the
Agreement. As provided in the Agreement and subject to certain limitations
therein set forth, the Certificates are exchangeable for new Certificates of
the
same Class in authorized denominations evidencing the same aggregate Percentage
Interest, as requested by the Holder surrendering the same. No service charge
will be made for any such registration of transfer or exchange of Certificates,
but the Trust Administrator may require payment of a sum sufficient to cover
any
tax or other governmental charge that may be imposed in connection with any
transfer or exchange of Certificates.
The
Depositor, the Master Servicer, the Trust Administrator, the Trustee and any
agent of the Depositor, the Master Servicer, the Trust Administrator or the
Trustee may treat the Person in whose name this Certificate is registered as
the
owner hereof for all purposes, and none of the Depositor, the Master Servicer,
the Trust Administrator, the Trustee nor any such agent shall be affected by
notice to the contrary.
The
obligations created by the Agreement and the Trust Fund created thereby shall
terminate upon payment to the Certificateholders of all amounts held by the
Trust Administrator and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of
all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided
in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans and REO Properties remaining in the
Trust Fund at the time of purchase being less than or equal to 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
Date.
The
recitals contained herein shall be taken as statements of the Depositor and
the
Trust Administrator assumes no responsibility for their
correctness.
Unless
the certificate of authentication hereon has been executed by the Trust
Administrator, by manual signature, this Certificate shall not be entitled
to
any benefit under the Agreement or be valid for any purpose.
IN
WITNESS WHEREOF, the Trust Administrator has caused this Certificate to be
duly
executed.
Dated:
December ___, 2006
|
XXXXX
FARGO BANK, N.A., not in its individual capacity, but solely as Trust
Administrator for the MASTR Asset Backed Securities Trust 2006-NC3,
Mortgage Pass-Through Certificates
|
||||||
|
By:
|
||||||
|
Authorized
Officer
|
||||||
CERTIFICATE
OF AUTHENTICATION
This
is
one of the Certificates referred to in the within-mentioned
Agreement.
|
XXXXX
FARGO BANK, N.A.,
as
Trust Administrator
|
|
|
By:
|
|
|
Authorized
Signatory
|
|
ABBREVIATIONS
The
following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
|
TEN
COM -
|
as
tenants in common
|
UNIF
GIFT MIN ACT -
|
Custodian
__________________
(Cust)
(Minor)
under
Uniform Gifts
to
Minors Act
__________________
(State)
|
|
TEN
ENT -
|
as
tenants by the entireties
|
||
|
JT
TEN -
|
as
joint tenants with right
of
survivorship and not as
tenants
in common
|
Additional
abbreviations may also be used though not in the above list.
ASSIGNMENT
FOR
VALUE
RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
|
.
|
(Please
print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I
(we)
further direct the Trust Administrator to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
|
.
|
|
Dated:
|
|
|
Signature
by or on behalf of assignor
|
|
|
Signature
Guaranteed
|
DISTRIBUTION
INSTRUCTIONS
The
assignee should include the following for purposes of distribution:
|
Distributions
shall be made, by wire transfer or otherwise, in immediately available
|
|||||||
|
funds
to
|
|||||||
|
for
the account of
|
|||||||
|
account
number
|
or,
if mailed by check, to
|
||||||
|
Applicable
statements should be mailed to
|
|||||||
|
This
information is provided by
|
|||||||
|
assignee
named above, or
|
|||||||
|
its
agent.
|
|||||||
EXHIBIT
A-CE
FORM
OF
CLASS CE CERTIFICATE
SOLELY
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986
AS
AMENDED (THE “CODE”).
THIS
CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES AND THE MEZZANINE
CERTIFICATES TO THE EXTENT DESCRIBED IN THE POOLING AND SERVICING AGREEMENT
REFERRED TO HEREIN.
THIS
CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT
OF
1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE RESOLD
OR
TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT AND LAWS OR IS SOLD
OR
TRANSFERRED IN TRANSACTIONS THAT ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT
AND
UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS
OF SECTION 5.02 OF THE AGREEMENT.
NO
TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
AS
AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT IN COMPLIANCE WITH THE PROCEDURES
DESCRIBED HEREIN.
|
Series
2006-NC3
Pass-Through
Rate: Variable
Cut-off
Date and date of Pooling and Servicing Agreement: December 1,
2006
First
Distribution Date: January 25, 2007
No.
1
|
Aggregate
Certificate Principal Balance of the Class CE Certificates as of
the Issue
Date: $18,059,238.45
Servicer:
Barclays Capital Real Estate Inc. d/b/a HomEq Servicing
Master
Servicer and Trust Administrator: Xxxxx Fargo Bank, N.A.
Custodian:
Deutsche Bank National Trust Company
Trustee:
U.S. Bank National Association
Issue
Date: December 28, 2006
|
DISTRIBUTIONS
IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE MAY BE
MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE
PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE
AS
THE DENOMINATION OF THIS CERTIFICATE.
MORTGAGE
PASS-THROUGH CERTIFICATE
evidencing
a beneficial ownership interest in a portion of a Trust Fund (the “Trust Fund”)
consisting primarily of a pool of conventional one- to four-family, fixed-rate
and adjustable-rate, first and second lien mortgage loans (the “Mortgage Loans”)
formed and sold by
MORTGAGE
ASSET SECURITIZATION TRANSACTIONS, INC.
THIS
CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN MORTGAGE ASSET
SECURITIZATION TRANSACTIONS, INC., THE MASTER SERVICER, THE TRUST ADMINISTRATOR,
THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
NOR
THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF
THE UNITED STATES.
This
certifies that UBS Securities LLC is the registered owner of a Percentage
Interest (obtained by dividing the denomination of this Certificate by the
aggregate Certificate Principal Balance of the Class CE Certificates as of
the
Issue Date) in that certain beneficial ownership interest evidenced by all
the
Class CE Certificates in a REMIC created pursuant to a Pooling and Servicing
Agreement, dated as specified above (the “Agreement”), among Mortgage Asset
Securitization Transactions, Inc. (hereinafter called the “Depositor,” which
term includes any successor entity under the Agreement), the Master Servicer,
the Trust Administrator and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is
bound.
Pursuant
to the terms of the Agreement, distributions will be made on the 25th
day of
each month or, if such 25th
day is
not a Business Day, the Business Day immediately following (a “Distribution
Date”), commencing on the First Distribution Date specified above, to the Person
in whose name this Certificate is registered on the Record Date, in an amount
equal to the product of the Percentage Interest evidenced by this Certificate
and the amount required to be distributed to the Holders of Class CE
Certificates on such Distribution Date pursuant to the Agreement.
All
distributions to the Holder of this Certificate under the Agreement will be
made
or caused to be made by the Trust Administrator by wire transfer in immediately
available funds to the account of the Person entitled thereto if such Person
shall have so notified the Trust Administrator in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and
is
the registered owner of Class CE Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or
(ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
CE Certificates, or otherwise by check mailed by first class mail to the address
of the Person entitled thereto, as such name and address shall appear on the
Certificate Register. Notwithstanding the above, the final distribution on
this
Certificate will be made after due notice by the Trust Administrator of the
pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trust Administrator for
that purpose as provided in the Agreement.
This
Certificate is one of a duly authorized issue of Certificates designated as
Mortgage Pass-Through Certificates of the Series specified on the face hereof
(herein called the “Certificates”) and representing a Percentage Interest in the
Class of Certificates specified on the face hereof equal to the denomination
specified on the face hereof divided by the aggregate Certificate Principal
Balance of the Class of Certificates specified on the face hereof.
The
Certificates are limited in right of payment to certain collections and
recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the Agreement. As provided in the Agreement, withdrawals from
the
Distribution Account may be made from time to time for purposes other than
distributions to Certificateholders, such purposes including reimbursement
of
advances made, or certain expenses incurred, with respect to the Mortgage
Loans.
The
Agreement permits, with certain exceptions therein provided, the amendment
thereof and the modification of the rights and obligations of the Depositor,
the
Master Servicer, the Servicer, the Trust Administrator, the Trustee and the
NIMS
Insurer, if any, the rights of the Certificateholders under the Agreement at
any
time by the Depositor, the Master Servicer, the Servicer, the Trust
Administrator, the Trustee and the NIMS Insurer, if any, without the consent
of
the Certificateholders or with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights as further set forth in the
Agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent
is
made upon this Certificate. The Agreement also permits the amendment thereof,
in
certain limited circumstances, without the consent of the Holders of any of
the
Certificates.
As
provided in the Agreement and subject to certain limitations therein set forth,
the transfer of this Certificate is registrable in the Certificate Register
upon
surrender of this Certificate for registration of transfer at the offices or
agencies appointed by the Trust Administrator as provided in the Agreement,
duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trust Administrator duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest
will
be issued to the designated transferee or transferees.
No
transfer of this Certificate shall be made unless the transfer is made pursuant
to an effective registration statement under the Securities Act of 1933, as
amended (the “1933 Act”), and an effective registration or qualification under
applicable state securities laws, or is made in a transaction that does not
require such registration or qualification. In the event that such a transfer
of
this Certificate is to be made without registration or qualification, the Trust
Administrator shall require receipt of (i) if such transfer is purportedly
being
made in reliance upon Rule 144A under the 1933 Act, written certifications
from
the Holder of the Certificate desiring to effect the transfer, and from such
Holder's prospective transferee, substantially in the forms attached to the
Agreement as Exhibit F-1, and (ii) in all other cases, an Opinion of Counsel
satisfactory to it that such transfer may be made without such registration
or
qualification (which Opinion of Counsel shall not be an expense of the Trust
Fund or of the Depositor, the Trustee or the Master Servicer, the Trust
Administrator in their respective capacities as such), together with copies
of
the written certification(s) of the Holder of the Certificate desiring to effect
the transfer and/or such Holder's prospective transferee upon which such Opinion
of Counsel is based. None of the Depositor or the Trust Administrator is
obligated to register or qualify the Class of Certificates specified on the
face
hereof under the 1933 Act or any other securities law or to take any action
not
otherwise required under the Agreement to permit the transfer of such
Certificates without registration or qualification. Any Holder desiring to
effect a transfer of this Certificate shall be required to indemnify the
Trustee, the Trust Administrator, the Depositor, the Servicer and the Master
Servicer against any liability that may result if the transfer is not so exempt
or is not made in accordance with such federal and state laws.
No
transfer of this Certificate to a Plan subject to ERISA or Section 4975 of
the
Code, any Person acting, directly or indirectly, on behalf of any such Plan
or
any Person using “Plan Assets” to acquire this Certificate shall be made except
in accordance with Section 5.02(c) of the Agreement.
The
Certificates are issuable in fully registered form only without coupons in
Classes and denominations representing Percentage Interests specified in the
Agreement. As provided in the Agreement and subject to certain limitations
therein set forth, the Certificates are exchangeable for new Certificates of
the
same Class in authorized denominations evidencing the same aggregate Percentage
Interest, as requested by the Holder surrendering the same. No service charge
will be made for any such registration of transfer or exchange of Certificates,
but the Trust Administrator may require payment of a sum sufficient to cover
any
tax or other governmental charge that may be imposed in connection with any
transfer or exchange of Certificates.
The
Depositor, the Master Servicer, the Trust Administrator, the Trustee and any
agent of the Depositor, the Master Servicer, the Trust Administrator or the
Trustee may treat the Person in whose name this Certificate is registered as
the
owner hereof for all purposes, and none of the Depositor, the Master Servicer,
the Trust Administrator, the Trustee nor any such agent shall be affected by
notice to the contrary.
The
obligations created by the Agreement and the Trust Fund created thereby shall
terminate upon payment to the Certificateholders of all amounts held by the
Trust Administrator and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of
all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided
in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans and REO Properties remaining in the
Trust Fund at the time of purchase being less than or equal to 10% of the
aggregate principal balance of the Mortgage Loans as of the Cut-off
Date.
The
recitals contained herein shall be taken as statements of the Depositor and
the
Trust Administrator assumes no responsibility for their
correctness.
Unless
the certificate of authentication hereon has been executed by the Trust
Administrator, by manual signature, this Certificate shall not be entitled
to
any benefit under the Agreement or be valid for any purpose.
IN
WITNESS WHEREOF, the Trust Administrator has caused this Certificate to be
duly
executed.
Dated:
December ___, 2006
|
XXXXX
FARGO BANK, N.A., not in its individual capacity, but solely as Trust
Administrator for the MASTR Asset Backed Securities Trust 2006-NC3,
Mortgage Pass-Through Certificates
|
||||||
|
By:
|
||||||
|
Authorized
Officer
|
||||||
CERTIFICATE
OF AUTHENTICATION
This
is
one of the Certificates referred to in the within-mentioned
Agreement.
|
XXXXX
FARGO BANK, N.A.,
as
Trust Administrator
|
|
|
By:
|
|
|
Authorized
Signatory
|
|
ABBREVIATIONS
The
following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
|
TEN
COM -
|
as
tenants in common
|
UNIF
GIFT MIN ACT -
|
Custodian
__________________
(Cust)
(Minor)
under
Uniform Gifts
to
Minors Act
__________________
(State)
|
|
TEN
ENT -
|
as
tenants by the entireties
|
||
|
JT
TEN -
|
as
joint tenants with right
of
survivorship and not as
tenants
in common
|
Additional
abbreviations may also be used though not in the above list.
ASSIGNMENT
FOR
VALUE
RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
|
.
|
(Please
print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I
(we)
further direct the Trust Administrator to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
|
.
|
|
Dated:
|
|
|
Signature
by or on behalf of assignor
|
|
|
Signature
Guaranteed
|
DISTRIBUTION
INSTRUCTIONS
The
assignee should include the following for purposes of distribution:
|
Distributions
shall be made, by wire transfer or otherwise, in immediately available
|
|||||||
|
funds
to
|
|||||||
|
for
the account of
|
|||||||
|
account
number
|
or,
if mailed by check, to
|
||||||
|
Applicable
statements should be mailed to
|
|||||||
|
This
information is provided by
|
|||||||
|
assignee
named above, or
|
|||||||
|
its
agent.
|
|||||||
EXHIBIT
A-P
FORM
OF
CLASS P CERTIFICATE
SOLELY
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986
AS
AMENDED (THE “CODE”).
THIS
CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT
OF
1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE RESOLD
OR
TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT AND LAWS OR IS SOLD
OR
TRANSFERRED IN TRANSACTIONS THAT ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT
AND
UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS
OF SECTION 5.02 OF THE AGREEMENT.
NO
TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
AS
AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT IN COMPLIANCE WITH THE PROCEDURES
DESCRIBED HEREIN.
|
Series:
2006-NC3
Cut-off
Date and date of Pooling and Servicing Agreement: December 1,
2006
First
Distribution Date: January 25, 2007
No.
1
|
Aggregate
Certificate Principal Balance of the Class P Certificates as of the
Issue
Date: $100.00
Denomination:
$100.00
Servicer:
Barclays Capital Real Estate Inc. d/b/a HomEq Servicing
Master
Servicer and Trust Administrator: Xxxxx Fargo Bank, N.A.
Custodian:
Deutsche Bank National Trust Company
Trustee:
U.S. Bank National Association
Issue
Date: December 28, 2006
|
DISTRIBUTIONS
IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE MAY BE
MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE
PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE
AS
THE DENOMINATION OF THIS CERTIFICATE.
MORTGAGE
PASS-THROUGH CERTIFICATE
evidencing
a beneficial ownership interest in a portion of a Trust Fund (the “Trust Fund”)
consisting primarily of a pool of conventional one- to four-family, fixed-rate
and adjustable-rate, first and second lien mortgage loans (the “Mortgage Loans”)
formed and sold by
MORTGAGE
ASSET SECURITIZATION TRANSACTIONS, INC.
THIS
CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN MORTGAGE ASSET
SECURITIZATION TRANSACTIONS, INC., THE MASTER SERVICER, THE TRUST ADMINISTRATOR,
THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
NOR
THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF
THE UNITED STATES.
This
certifies that UBS Securities LLC is the registered owner of a Percentage
Interest (obtained by dividing the denomination of this Certificate by the
aggregate Certificate Principal Balance of the Class P Certificates as of the
Issue Date) in that certain beneficial ownership interest evidenced by all
the
Class P Certificates in REMIC IV created pursuant to a Pooling and Servicing
Agreement, dated as specified above (the “Agreement”), among Mortgage Asset
Securitization Transactions, Inc. (hereinafter called the “Depositor,” which
term includes any successor entity under the Agreement), the Master Servicer,
the Trust Administrator and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is
bound.
Pursuant
to the terms of the Agreement, distributions will be made on the 25th
day of
each month or, if such 25th
day is
not a Business Day, the Business Day immediately following (a “Distribution
Date”), commencing on the First Distribution Date specified above, to the Person
in whose name this Certificate is registered on the Record Date, in an amount
equal to the product of the Percentage Interest evidenced by this Certificate
and the amount required to be distributed to the Holders of Class P Certificates
on such Distribution Date pursuant to the Agreement.
All
distributions to the Holder of this Certificate under the Agreement will be
made
or caused to be made by the Trust Administrator by wire transfer in immediately
available funds to the account of the Person entitled thereto if such Person
shall have so notified the Trust Administrator in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and
is
the registered owner of Class P Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or
(ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
P
Certificates, or otherwise by check mailed by first class mail to the address
of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register. Notwithstanding the above, the final distribution on
this
Certificate will be made after due notice by the Trust Administrator of the
pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trust Administrator for
that purpose as provided in the Agreement.
This
Certificate is one of a duly authorized issue of Certificates designated as
Mortgage Pass-Through Certificates of the Series specified on the face hereof
(herein called the “Certificates”) and representing a Percentage Interest in the
Class of Certificates specified on the face hereof equal to the denomination
specified on the face hereof divided by the aggregate Certificate Principal
Balance of the Class of Certificates specified on the face hereof.
The
Certificates are limited in right of payment to certain collections and
recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the Agreement. As provided in the Agreement, withdrawals from
the
Distribution Account may be made from time to time for purposes other than
distributions to Certificateholders, such purposes including reimbursement
of
advances made, or certain expenses incurred, with respect to the Mortgage
Loans.
The
Agreement permits, with certain exceptions therein provided, the amendment
thereof and the modification of the rights and obligations of the Depositor,
the
Master Servicer, the Servicer, the Trust Administrator, the Trustee and the
NIMS
Insurer, if any, the rights of the Certificateholders under the Agreement at
any
time by the Depositor, the Master Servicer, the Servicer, the Trust
Administrator, the Trustee and the NIMS Insurer, if any, without the consent
of
the Certificateholders or with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights as further set forth in the
Agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent
is
made upon this Certificate. The Agreement also permits the amendment thereof,
in
certain limited circumstances, without the consent of the Holders of any of
the
Certificates.
As
provided in the Agreement and subject to certain limitations therein set forth,
the transfer of this Certificate is registrable in the Certificate Register
upon
surrender of this Certificate for registration of transfer at the offices or
agencies appointed by the Trust Administrator as provided in the Agreement,
duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trust Administrator duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest
will
be issued to the designated transferee or transferees.
No
transfer of this Certificate shall be made unless the transfer is made pursuant
to an effective registration statement under the Securities Act of 1933, as
amended (the “1933 Act”), and an effective registration or qualification under
applicable state securities laws, or is made in a transaction that does not
require such registration or qualification. In the event that such a transfer
of
this Certificate is to be made without registration or qualification, the Trust
Administrator shall require receipt of (i) if such transfer is purportedly
being
made in reliance upon Rule 144A under the 1933 Act, written certifications
from
the Holder of the Certificate desiring to effect the transfer, and from such
Holder's prospective transferee, substantially in the forms attached to the
Agreement as Exhibit F-1, and (ii) in all other cases, an Opinion of Counsel
satisfactory to it that such transfer may be made without such registration
or
qualification (which Opinion of Counsel shall not be an expense of the Trust
Fund or of the Depositor, the Trustee or the Master Servicer, the Trust
Administrator in their respective capacities as such), together with copies
of
the written certification(s) of the Holder of the Certificate desiring to effect
the transfer and/or such Holder's prospective transferee upon which such Opinion
of Counsel is based. None of the Depositor or the Trust Administrator is
obligated to register or qualify the Class of Certificates specified on the
face
hereof under the 1933 Act or any other securities law or to take any action
not
otherwise required under the Agreement to permit the transfer of such
Certificates without registration or qualification. Any Holder desiring to
effect a transfer of this Certificate shall be required to indemnify the
Trustee, the Trust Administrator, the Depositor, the Servicer and the Master
Servicer against any liability that may result if the transfer is not so exempt
or is not made in accordance with such federal and state laws.
No
transfer of this Certificate to a Plan subject to ERISA or Section 4975 of
the
Code, any Person acting, directly or indirectly, on behalf of any such Plan
or
any Person using “Plan Assets” to acquire this Certificate shall be made except
in accordance with Section 5.02(c) of the Agreement.
The
Certificates are issuable in fully registered form only without coupons in
Classes and denominations representing Percentage Interests specified in the
Agreement. As provided in the Agreement and subject to certain limitations
therein set forth, the Certificates are exchangeable for new Certificates of
the
same Class in authorized denominations evidencing the same aggregate Percentage
Interest, as requested by the Holder surrendering the same. No service charge
will be made for any such registration of transfer or exchange of Certificates,
but the Trust Administrator may require payment of a sum sufficient to cover
any
tax or other governmental charge that may be imposed in connection with any
transfer or exchange of Certificates.
The
Depositor, the Master Servicer, the Trust Administrator, the Trustee and any
agent of the Depositor, the Master Servicer, the Trust Administrator or the
Trustee may treat the Person in whose name this Certificate is registered as
the
owner hereof for all purposes, and none of the Depositor, the Master Servicer,
the Trust Administrator, the Trustee nor any such agent shall be affected by
notice to the contrary.
The
obligations created by the Agreement and the Trust Fund created thereby shall
terminate upon payment to the Certificateholders of all amounts held by the
Trust Administrator and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of
all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided
in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans and REO Properties remaining in the
Trust Fund at the time of purchase being less than or equal to 10% of the
aggregate principal balance of the Mortgage Loans as of the Cut-off
Date.
The
recitals contained herein shall be taken as statements of the Depositor and
the
Trust Administrator assumes no responsibility for their
correctness.
Unless
the certificate of authentication hereon has been executed by the Trust
Administrator, by manual signature, this Certificate shall not be entitled
to
any benefit under the Agreement or be valid for any purpose.
IN
WITNESS WHEREOF, the Trust Administrator has caused this Certificate to be
duly
executed.
Dated:
December ___, 2006
|
XXXXX
FARGO BANK, N.A., not in its individual capacity, but solely as Trust
Administrator for the MASTR Asset Backed Securities Trust 2006-NC3,
Mortgage Pass-Through Certificates
|
||||||
|
By:
|
||||||
|
Authorized
Officer
|
||||||
CERTIFICATE
OF AUTHENTICATION
This
is
one of the Certificates referred to in the within-mentioned
Agreement.
|
XXXXX
FARGO BANK, N.A.,
as
Trust Administrator
|
|
|
By:
|
|
|
Authorized
Signatory
|
|
ABBREVIATIONS
The
following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
|
TEN
COM -
|
as
tenants in common
|
UNIF
GIFT MIN ACT -
|
Custodian
__________________
(Cust)
(Minor)
under
Uniform Gifts
to
Minors Act
__________________
(State)
|
|
TEN
ENT -
|
as
tenants by the entireties
|
||
|
JT
TEN -
|
as
joint tenants with right
of
survivorship and not as
tenants
in common
|
Additional
abbreviations may also be used though not in the above list.
ASSIGNMENT
FOR
VALUE
RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
|
.
|
(Please
print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I
(we)
further direct the Trust Administrator to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
|
.
|
|
Dated:
|
|
|
Signature
by or on behalf of assignor
|
|
|
Signature
Guaranteed
|
DISTRIBUTION
INSTRUCTIONS
The
assignee should include the following for purposes of distribution:
|
Distributions
shall be made, by wire transfer or otherwise, in immediately available
|
|||||||
|
funds
to
|
|||||||
|
for
the account of
|
|||||||
|
account
number
|
or,
if mailed by check, to
|
||||||
|
Applicable
statements should be mailed to
|
|||||||
|
This
information is provided by
|
|||||||
|
assignee
named above, or
|
|||||||
|
its
agent.
|
|||||||
EXHIBIT
A-R
FORM
OF
CLASS R CERTIFICATE
THIS
CERTIFICATE MAY NOT BE TRANSFERRED TO A NON-UNITED STATES PERSON.
SOLELY
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “RESIDUAL INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT” (“REMIC”), AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE
OF
1986 AS AMENDED (THE “CODE”).
ANY
RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
IN
ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF THE POOLING AND SERVICING
AGREEMENT REFERRED TO HEREIN.
THIS
CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT
OF
1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE RESOLD
OR
TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT AND LAWS OR IS SOLD
OR
TRANSFERRED IN TRANSACTIONS THAT ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT
AND
UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS
OF SECTION 5.02 OF THE AGREEMENT.
NO
TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
AS
AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT IN COMPLIANCE WITH THE PROCEDURES
DESCRIBED HEREIN.
ANY
RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
IF
THE PROPOSED TRANSFEREE PROVIDES (I) AN AFFIDAVIT TO THE TRUST ADMINISTRATOR
THAT (A) SUCH TRANSFEREE IS NOT (1) THE UNITED STATES OR ANY POSSESSION THEREOF,
ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY FOREIGN GOVERNMENT, ANY
INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF ANY OF THE
FOREGOING, (2) ANY ORGANIZATION (OTHER THAN A COOPERATIVE DESCRIBED IN SECTION
521 OF THE CODE) THAT IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE
UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE
CODE, (3) ANY ORGANIZATION DESCRIBED IN SECTION 1381(A)(2)(C) OF THE CODE (ANY
SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (1), (2) OR (3) SHALL HEREINAFTER
BE REFERRED TO AS A “DISQUALIFIED ORGANIZATION”) OR (4) AN AGENT OF A
DISQUALIFIED ORGANIZATION AND (B) NO PURPOSE OF SUCH TRANSFER IS TO IMPEDE
THE
ASSESSMENT OR COLLECTION OF TAX, AND (II) SUCH TRANSFEREE SATISFIES CERTAIN
ADDITIONAL CONDITIONS RELATING TO THE FINANCIAL CONDITION OF THE PROPOSED
TRANSFEREE. NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE REGISTER OF
ANY
TRANSFER, SALE OR OTHER DISPOSITION OF THIS CERTIFICATE TO A DISQUALIFIED
ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION
SHALL
BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL
NOT
BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT
NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS CERTIFICATE. EACH HOLDER
OF
THIS CERTIFICATE BY ACCEPTANCE HEREOF SHALL BE DEEMED TO HAVE CONSENTED TO
THE
PROVISIONS OF THIS PARAGRAPH AND THE PROVISIONS OF SECTION 5.02(c) OF THE
POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN. ANY PERSON THAT IS A
DISQUALIFIED ORGANIZATION IS PROHIBITED FROM ACQUIRING BENEFICIAL OWNERSHIP
OF
THIS CERTIFICATE.
|
Series:
2006-NC3
Cut-off
Date and date of Pooling and Servicing Agreement: December 1,
2006
First
Distribution Date: January 25, 2007
No.
1
|
Aggregate
Percentage Interest of the Class R Certificates as of the Issue Date:
100.00%
Servicer:
Barclays Capital Real Estate Inc. d/b/a HomEq Servicing
Master
Servicer and Trust Administrator: Xxxxx Fargo Bank, N.A.
Custodian:
Deutsche Bank National Trust Company
Trustee:
U.S. Bank National Association
Issue
Date: December 28, 2006
|
MORTGAGE
PASS-THROUGH CERTIFICATE
evidencing
a beneficial ownership interest in a portion of a Trust Fund (the “Trust Fund”)
consisting primarily of a pool of conventional one- to four-family, fixed-rate
and adjustable-rate, first and second lien mortgage loans (the “Mortgage Loans”)
formed and sold by
MORTGAGE
ASSET SECURITIZATION TRANSACTIONS, INC.
THIS
CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN MORTGAGE ASSET
SECURITIZATION TRANSACTIONS, INC., THE MASTER SERVICER, THE TRUST ADMINISTRATOR,
THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
NOR
THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF
THE UNITED STATES.
This
certifies that UBS Securities LLC is the registered owner of a Percentage
Interest (as specified above) in that certain beneficial ownership interest
evidenced by all the Certificates of the Class to which this Certificate belongs
created pursuant to a Pooling and Servicing Agreement, dated as specified above
(the “Agreement”), among Mortgage Asset Securitization Transactions, Inc.
(hereinafter called the “Depositor,” which term includes any successor entity
under the Agreement), the Master Servicer, the Trust Administrator and the
Trustee, a summary of certain of the pertinent provisions of which is set forth
hereafter. To the extent not defined herein, the capitalized terms used herein
have the meanings assigned in the Agreement. This Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.
Pursuant
to the terms of the Agreement, distributions will be made on the 25th
day of
each month or, if such 25th
day is
not a Business Day, the Business Day immediately following (a “Distribution
Date”), commencing on the First Distribution Date specified above, to the Person
in whose name this Certificate is registered on the Record Date, in an amount
equal to the product of the Percentage Interest evidenced by this Certificate
and the amount required to be distributed to the Holders of Class R Certificates
on such Distribution Date pursuant to the Agreement.
All
distributions to the Holder of this Certificate under the Agreement will be
made
or caused to be made by the Trust Administrator by wire transfer in immediately
available funds to the account of the Person entitled thereto if such Person
shall have so notified the Trust Administrator in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and
is
the registered owner of Class R Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or
(ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
R
Certificates, or otherwise by check mailed by first class mail to the address
of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register. Notwithstanding the above, the final distribution on
this
Certificate will be made after due notice by the Trust Administrator of the
pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trust Administrator for
that purpose as provided in the Agreement.
This
Certificate is one of a duly authorized issue of Certificates designated as
Mortgage Pass-Through Certificates of the Series specified on the face hereof
(herein called the “Certificates”) and representing a Percentage Interest in the
Class of Certificates specified on the face hereof.
The
Certificates are limited in right of payment to certain collections and
recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the Agreement. As provided in the Agreement, withdrawals from
the
Distribution Account may be made from time to time for purposes other than
distributions to Certificateholders, such purposes including reimbursement
of
advances made, or certain expenses incurred, with respect to the Mortgage
Loans.
The
Agreement permits, with certain exceptions therein provided, the amendment
thereof and the modification of the rights and obligations of the Depositor,
the
Master Servicer, the Servicer, the Trust Administrator, the Trustee and the
NIMS
Insurer, if any, the rights of the Certificateholders under the Agreement at
any
time by the Depositor, the Master Servicer, the Servicer, the Trust
Administrator, the Trustee and the NIMS Insurer, if any, without the consent
of
the Certificateholders or with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights as further set forth in the
Agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent
is
made upon this Certificate. The Agreement also permits the amendment thereof,
in
certain limited circumstances, without the consent of the Holders of any of
the
Certificates.
As
provided in the Agreement and subject to certain limitations therein set forth,
the transfer of this Certificate is registrable in the Certificate Register
upon
surrender of this Certificate for registration of transfer at the offices or
agencies appointed by the Trust Administrator as provided in the Agreement,
duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trust Administrator duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest
will
be issued to the designated transferee or transferees.
No
transfer of this Certificate shall be made unless the transfer is made pursuant
to an effective registration statement under the Securities Act of 1933, as
amended (the “1933 Act”), and an effective registration or qualification under
applicable state securities laws, or is made in a transaction that does not
require such registration or qualification. In the event that such a transfer
of
this Certificate is to be made without registration or qualification, the Trust
Administrator shall require receipt of (i) if such transfer is purportedly
being
made in reliance upon Rule 144A under the 1933 Act, written certifications
from
the Holder of the Certificate desiring to effect the transfer, and from such
Holder's prospective transferee, substantially in the forms attached to the
Agreement as Exhibit F-1, and (ii) in all other cases, an Opinion of Counsel
satisfactory to it that such transfer may be made without such registration
or
qualification (which Opinion of Counsel shall not be an expense of the Trust
Fund or of the Depositor, the Trustee or the Master Servicer, the Trust
Administrator in their respective capacities as such), together with copies
of
the written certification(s) of the Holder of the Certificate desiring to effect
the transfer and/or such Holder's prospective transferee upon which such Opinion
of Counsel is based. Neither the Depositor nor the Trust Administrator is
obligated to register or qualify the Class of Certificates specified on the
face
hereof under the 1933 Act or any other securities law or to take any action
not
otherwise required under the Agreement to permit the transfer of such
Certificates without registration or qualification. Any Holder desiring to
effect a transfer of this Certificate shall be required to indemnify the
Trustee, the Trust Administrator, the Depositor, the Servicer, and the Master
Servicer against any liability that may result if the transfer is not so exempt
or is not made in accordance with such federal and state laws.
No
transfer of this Certificate to a Plan subject to ERISA or Section 4975 of
the
Code, any Person acting, directly or indirectly, on behalf of any such Plan
or
any Person using “Plan Assets” to acquire this Certificate shall be made except
in accordance with Section 5.02(c) of the Agreement.
The
Certificates are issuable in fully registered form only without coupons in
Classes and denominations representing Percentage Interests specified in the
Agreement. As provided in the Agreement and subject to certain limitations
therein set forth, the Certificates are exchangeable for new Certificates of
the
same Class in authorized denominations evidencing the same aggregate Percentage
Interest, as requested by the Holder surrendering the same. No service charge
will be made for any such registration of transfer or exchange of Certificates,
but the Trust Administrator may require payment of a sum sufficient to cover
any
tax or other governmental charge that may be imposed in connection with any
transfer or exchange of Certificates.
Prior
to
registration of any transfer, sale or other disposition of this Certificate,
the
proposed transferee shall provide to the Trust Administrator (i) an affidavit
to
the effect that such transferee is any Person other than a Disqualified
Organization or the agent (including a broker, nominee or middleman) of a
Disqualified Organization, and (ii) a certificate that acknowledges that (A)
the
Class R Certificates have been designated as a residual interest in a REMIC,
(B)
it will include in its income a pro
rata share
of
the net income of the Trust Fund and that such income may be an “excess
inclusion,” as defined in the Code, that, with certain exceptions, cannot be
offset by other losses or benefits from any tax exemption, and (C) it expects
to
have the financial means to satisfy all of its tax obligations including those
relating to holding the Class R Certificates. Notwithstanding the registration
in the Certificate Register of any transfer, sale or other disposition of this
Certificate to a Disqualified Organization or an agent (including a broker,
nominee or middleman) of a Disqualified Organization, such registration shall
be
deemed to be of no legal force or effect whatsoever and such Person shall not
be
deemed to be a Certificateholder for any purpose, including, but not limited
to,
the receipt of distributions in respect of this Certificate.
The
Holder of this Certificate, by its acceptance hereof, shall be deemed to have
consented to the provisions of Section 5.02 of the Agreement and to any
amendment of the Agreement deemed necessary by counsel of the Depositor to
ensure that the transfer of this Certificate to any Person other than a
Permitted Transferee or any other Person will not cause the Trust Fund to cease
to qualify as a REMIC or cause the imposition of a tax upon the
REMIC.
The
Depositor, the Master Servicer, the Trust Administrator, the Trustee and any
agent of the Depositor, the Master Servicer, the Trust Administrator or the
Trustee may treat the Person in whose name this Certificate is registered as
the
owner hereof for all purposes, and none of the Depositor, the Master Servicer,
the Trust Administrator, the Trustee nor any such agent shall be affected by
notice to the contrary.
The
obligations created by the Agreement and the Trust Fund created thereby shall
terminate upon payment to the Certificateholders of all amounts held by the
Trust Administrator and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of
all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided
in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans and REO Properties remaining in the
Trust Fund at the time of purchase being less than or equal to 10% of the
aggregate principal balance of the Mortgage Loans as of the Cut-off
Date.
The
recitals contained herein shall be taken as statements of the Depositor and
the
Trust Administrator assumes no responsibility for their
correctness.
Unless
the certificate of authentication hereon has been executed by the Trust
Administrator, by manual signature, this Certificate shall not be entitled
to
any benefit under the Agreement or be valid for any purpose.
IN
WITNESS WHEREOF, the Trust Administrator has caused this Certificate to be
duly
executed.
Dated:
December ___, 2006
|
XXXXX
FARGO BANK, N.A., not in its individual capacity, but solely as Trust
Administrator for the MASTR Asset Backed Securities Trust 2006-NC3,
Mortgage Pass-Through Certificates
|
||||||
|
By:
|
||||||
|
Authorized
Officer
|
||||||
CERTIFICATE
OF AUTHENTICATION
This
is
one of the Certificates referred to in the within-mentioned
Agreement.
|
XXXXX
FARGO BANK, N.A.,
as
Trust Administrator
|
|
|
By:
|
|
|
Authorized
Signatory
|
|
ABBREVIATIONS
The
following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
|
TEN
COM -
|
as
tenants in common
|
UNIF
GIFT MIN ACT -
|
Custodian
__________________
(Cust)
(Minor)
under
Uniform Gifts
to
Minors Act
__________________
(State)
|
|
TEN
ENT -
|
as
tenants by the entireties
|
||
|
JT
TEN -
|
as
joint tenants with right
of
survivorship and not as
tenants
in common
|
Additional
abbreviations may also be used though not in the above list.
ASSIGNMENT
FOR
VALUE
RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
|
.
|
(Please
print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I
(we)
further direct the Trust Administrator to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
|
.
|
|
Dated:
|
|
|
Signature
by or on behalf of assignor
|
|
|
Signature
Guaranteed
|
DISTRIBUTION
INSTRUCTIONS
The
assignee should include the following for purposes of distribution:
|
Distributions
shall be made, by wire transfer or otherwise, in immediately available
|
|||||||
|
funds
to
|
|||||||
|
for
the account of
|
|||||||
|
account
number
|
or,
if mailed by check, to
|
||||||
|
Applicable
statements should be mailed to
|
|||||||
|
This
information is provided by
|
|||||||
|
assignee
named above, or
|
|||||||
|
its
agent.
|
|||||||
EXHIBIT
A-RX
FORM
OF
CLASS R-X CERTIFICATE
THIS
CERTIFICATE MAY NOT BE TRANSFERRED TO A NON-UNITED STATES PERSON.
SOLELY
FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “RESIDUAL INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT” (“REMIC”), AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE
OF
1986 AS AMENDED (THE “CODE”).
ANY
RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
IN
ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF THE POOLING AND SERVICING
AGREEMENT REFERRED TO HEREIN.
THIS
CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT
OF
1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE RESOLD
OR
TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT AND LAWS OR IS SOLD
OR
TRANSFERRED IN TRANSACTIONS THAT ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT
AND
UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS
OF SECTION 5.02 OF THE AGREEMENT.
NO
TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
AS
AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT IN COMPLIANCE WITH THE PROCEDURES
DESCRIBED HEREIN.
ANY
RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
IF
THE PROPOSED TRANSFEREE PROVIDES (I) AN AFFIDAVIT TO THE TRUST ADMINISTRATOR
THAT (A) SUCH TRANSFEREE IS NOT (1) THE UNITED STATES OR ANY POSSESSION THEREOF,
ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY FOREIGN GOVERNMENT, ANY
INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF ANY OF THE
FOREGOING, (2) ANY ORGANIZATION (OTHER THAN A COOPERATIVE DESCRIBED IN SECTION
521 OF THE CODE) THAT IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE
UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE
CODE, (3) ANY ORGANIZATION DESCRIBED IN SECTION 1381(A)(2)(C) OF THE CODE (ANY
SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (1), (2) OR (3) SHALL HEREINAFTER
BE REFERRED TO AS A “DISQUALIFIED ORGANIZATION”) OR (4) AN AGENT OF A
DISQUALIFIED ORGANIZATION AND (B) NO PURPOSE OF SUCH TRANSFER IS TO IMPEDE
THE
ASSESSMENT OR COLLECTION OF TAX, AND (II) SUCH TRANSFEREE SATISFIES CERTAIN
ADDITIONAL CONDITIONS RELATING TO THE FINANCIAL CONDITION OF THE PROPOSED
TRANSFEREE. NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE REGISTER OF
ANY
TRANSFER, SALE OR OTHER DISPOSITION OF THIS CERTIFICATE TO A DISQUALIFIED
ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION
SHALL
BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL
NOT
BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT
NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS CERTIFICATE. EACH HOLDER
OF
THIS CERTIFICATE BY ACCEPTANCE HEREOF SHALL BE DEEMED TO HAVE CONSENTED TO
THE
PROVISIONS OF THIS PARAGRAPH AND THE PROVISIONS OF SECTION 5.02 (C) OF THE
POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN. ANY PERSON THAT IS A
DISQUALIFIED ORGANIZATION IS PROHIBITED FROM ACQUIRING BENEFICIAL OWNERSHIP
OF
THIS CERTIFICATE.
|
Series:
2006-NC3
Cut-off
Date and date of Pooling and Servicing Agreement: December 1,
2006
First
Distribution Date: January 25, 2007
No.
1
|
Aggregate
Percentage Interest of the Class R-X Certificates as of the Issue
Date:
100.00%
Servicer:
Barclays Capital Real Estate Inc. d/b/a HomEq Servicing
Master
Servicer and Trust Administrator: Xxxxx Fargo Bank, N.A.
Custodian:
Deutsche Bank National Trust Company
Trustee:
U.S. Bank National Association
Issue
Date: December 28, 2006
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MORTGAGE
PASS-THROUGH CERTIFICATE
evidencing
a beneficial ownership interest in a portion of a Trust Fund (the “Trust Fund”)
consisting primarily of a pool of conventional one- to four-family, fixed-rate
and adjustable-rate, first and second lien mortgage loans (the “Mortgage Loans”)
formed and sold by
MORTGAGE
ASSET SECURITIZATION TRANSACTIONS, INC.
THIS
CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN MORTGAGE ASSET
SECURITIZATION TRANSACTIONS, INC., THE MASTER SERVICER, THE TRUST ADMINISTRATOR,
THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
NOR
THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF
THE UNITED STATES.
This
certifies that UBS Securities LLC is the registered owner of a Percentage
Interest (as specified above) in that certain beneficial ownership interest
evidenced by all the Certificates of the Class to which this Certificate belongs
created pursuant to a Pooling and Servicing Agreement, dated as specified above
(the “Agreement”), among Mortgage Asset Securitization Transactions, Inc.
(hereinafter called the “Depositor,” which term includes any successor entity
under the Agreement), the Master Servicer, the Trust Administrator and the
Trustee, a summary of certain of the pertinent provisions of which is set forth
hereafter. To the extent not defined herein, the capitalized terms used herein
have the meanings assigned in the Agreement. This Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.
Pursuant
to the terms of the Agreement, distributions will be made on the 25th
day of
each month or, if such 25th
day is
not a Business Day, the Business Day immediately following (a “Distribution
Date”), commencing on the First Distribution Date specified above, to the Person
in whose name this Certificate is registered on the Record Date, in an amount
equal to the product of the Percentage Interest evidenced by this Certificate
and the amount required to be distributed to the Holders of Class R-X
Certificates on such Distribution Date pursuant to the Agreement.
All
distributions to the Holder of this Certificate under the Agreement will be
made
or caused to be made by the Trust Administrator by wire transfer in immediately
available funds to the account of the Person entitled thereto if such Person
shall have so notified the Trust Administrator in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and
is
the registered owner of Class R-X Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or
(ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
R-X Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear
on
the Certificate Register. Notwithstanding the above, the final distribution
on
this Certificate will be made after due notice by the Trust Administrator of
the
pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trust Administrator for
that purpose as provided in the Agreement.
This
Certificate is one of a duly authorized issue of Certificates designated as
Mortgage Pass-Through Certificates of the Series specified on the face hereof
(herein called the “Certificates”) and representing a Percentage Interest in the
Class of Certificates specified on the face hereof.
The
Certificates are limited in right of payment to certain collections and
recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the Agreement. As provided in the Agreement, withdrawals from
the
Distribution Account may be made from time to time for purposes other than
distributions to Certificateholders, such purposes including reimbursement
of
advances made, or certain expenses incurred, with respect to the Mortgage
Loans.
The
Agreement permits, with certain exceptions therein provided, the amendment
thereof and the modification of the rights and obligations of the Depositor,
the
Master Servicer, the Servicer, the Trust Administrator, the Trustee and the
NIMS
Insurer, if any, the rights of the Certificateholders under the Agreement at
any
time by the Depositor, the Master Servicer, the Servicer, the Trust
Administrator, the Trustee and the NIMS Insurer, if any, without the consent
of
the Certificateholders or with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights as further set forth in the
Agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent
is
made upon this Certificate. The Agreement also permits the amendment thereof,
in
certain limited circumstances, without the consent of the Holders of any of
the
Certificates.
As
provided in the Agreement and subject to certain limitations therein set forth,
the transfer of this Certificate is registrable in the Certificate Register
upon
surrender of this Certificate for registration of transfer at the offices or
agencies appointed by the Trust Administrator as provided in the Agreement,
duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trust Administrator duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest
will
be issued to the designated transferee or transferees.
No
transfer of this Certificate shall be made unless the transfer is made pursuant
to an effective registration statement under the Securities Act of 1933, as
amended (the “1933 Act”), and an effective registration or qualification under
applicable state securities laws, or is made in a transaction that does not
require such registration or qualification. In the event that such a transfer
of
this Certificate is to be made without registration or qualification, the Trust
Administrator shall require receipt of (i) if such transfer is purportedly
being
made in reliance upon Rule 144A under the 1933 Act, written certifications
from
the Holder of the Certificate desiring to effect the transfer, and from such
Holder's prospective transferee, substantially in the forms attached to the
Agreement as Exhibit F-1, and (ii) in all other cases, an Opinion of Counsel
satisfactory to it that such transfer may be made without such registration
or
qualification (which Opinion of Counsel shall not be an expense of the Trust
Fund or of the Depositor, the Trustee or the Master Servicer, the Trust
Administrator in their respective capacities as such), together with copies
of
the written certification(s) of the Holder of the Certificate desiring to effect
the transfer and/or such Holder's prospective transferee upon which such Opinion
of Counsel is based. Neither the Depositor nor the Trust Administrator is
obligated to register or qualify the Class of Certificates specified on the
face
hereof under the 1933 Act or any other securities law or to take any action
not
otherwise required under the Agreement to permit the transfer of such
Certificates without registration or qualification. Any Holder desiring to
effect a transfer of this Certificate shall be required to indemnify the
Trustee, the Trust Administrator, the Depositor, the Servicer and the Master
Servicer against any liability that may result if the transfer is not so exempt
or is not made in accordance with such federal and state laws.
No
transfer of this Certificate to a Plan subject to ERISA or Section 4975 of
the
Code, any Person acting, directly or indirectly, on behalf of any such Plan
or
any Person using “Plan Assets” to acquire this Certificate shall be made except
in accordance with Section 5.02(c) of the Agreement.
The
Certificates are issuable in fully registered form only without coupons in
Classes and denominations representing Percentage Interests specified in the
Agreement. As provided in the Agreement and subject to certain limitations
therein set forth, the Certificates are exchangeable for new Certificates of
the
same Class in authorized denominations evidencing the same aggregate Percentage
Interest, as requested by the Holder surrendering the same. No service charge
will be made for any such registration of transfer or exchange of Certificates,
but the Trust Administrator may require payment of a sum sufficient to cover
any
tax or other governmental charge that may be imposed in connection with any
transfer or exchange of Certificates.
Prior
to
registration of any transfer, sale or other disposition of this Certificate,
the
proposed transferee shall provide to the Trust Administrator (i) an affidavit
to
the effect that such transferee is any Person other than a Disqualified
Organization or the agent (including a broker, nominee or middleman) of a
Disqualified Organization, and (ii) a certificate that acknowledges that (A)
the
Class R-X Certificates have been designated as a residual interest in a REMIC,
(B) it will include in its income a pro
rata share
of
the net income of the Trust Fund and that such income may be an “excess
inclusion,” as defined in the Code, that, with certain exceptions, cannot be
offset by other losses or benefits from any tax exemption, and (C) it expects
to
have the financial means to satisfy all of its tax obligations including those
relating to holding the Class R-X Certificates. Notwithstanding the registration
in the Certificate Register of any transfer, sale or other disposition of this
Certificate to a Disqualified Organization or an agent (including a broker,
nominee or middleman) of a Disqualified Organization, such registration shall
be
deemed to be of no legal force or effect whatsoever and such Person shall not
be
deemed to be a Certificateholder for any purpose, including, but not limited
to,
the receipt of distributions in respect of this Certificate.
The
Holder of this Certificate, by its acceptance hereof, shall be deemed to have
consented to the provisions of Section 5.02 of the Agreement and to any
amendment of the Agreement deemed necessary by counsel of the Depositor to
ensure that the transfer of this Certificate to any Person other than a
Permitted Transferee or any other Person will not cause the Trust Fund to cease
to qualify as a REMIC or cause the imposition of a tax upon the
REMIC.
The
Depositor, the Master Servicer, the Trust Administrator, the Trustee and any
agent of the Depositor, the Master Servicer, the Trust Administrator or the
Trustee may treat the Person in whose name this Certificate is registered as
the
owner hereof for all purposes, and none of the Depositor, the Master Servicer,
the Trust Administrator, the Trustee nor any such agent shall be affected by
notice to the contrary.
The
obligations created by the Agreement and the Trust Fund created thereby shall
terminate upon payment to the Certificateholders of all amounts held by the
Trust Administrator and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of
all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided
in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans and REO Properties remaining in the
Trust Fund at the time of purchase being less than or equal to 10% of the
aggregate principal balance of the Mortgage Loans as of the Cut-off
Date.
The
recitals contained herein shall be taken as statements of the Depositor and
the
Trust Administrator assumes no responsibility for their
correctness.
Unless
the certificate of authentication hereon has been executed by the Trust
Administrator, by manual signature, this Certificate shall not be entitled
to
any benefit under the Agreement or be valid for any purpose.
IN
WITNESS WHEREOF, the Trust Administrator has caused this Certificate to be
duly
executed.
Dated:
December ___, 2006
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XXXXX
FARGO BANK, N.A., not in its individual capacity, but solely as Trust
Administrator for the MASTR Asset Backed Securities Trust 2006-NC3,
Mortgage Pass-Through Certificates
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By:
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Authorized
Officer
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CERTIFICATE
OF AUTHENTICATION
This
is
one of the Certificates referred to in the within-mentioned
Agreement.
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XXXXX
FARGO BANK, N.A.,
as
Trust Administrator
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By:
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Authorized
Signatory
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ABBREVIATIONS
The
following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
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TEN
COM -
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as
tenants in common
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UNIF
GIFT MIN ACT -
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Custodian
__________________
(Cust)
(Minor)
under
Uniform Gifts
to
Minors Act
__________________
(State)
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TEN
ENT -
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as
tenants by the entireties
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||
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JT
TEN -
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as
joint tenants with right
of
survivorship and not as
tenants
in common
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Additional
abbreviations may also be used though not in the above list.
ASSIGNMENT
FOR
VALUE
RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
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.
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(Please
print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I
(we)
further direct the Trust Administrator to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
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.
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Dated:
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Signature
by or on behalf of assignor
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Signature
Guaranteed
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DISTRIBUTION
INSTRUCTIONS
The
assignee should include the following for purposes of distribution:
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Distributions
shall be made, by wire transfer or otherwise, in immediately available
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funds
to
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for
the account of
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account
number
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or,
if mailed by check, to
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Applicable
statements should be mailed to
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This
information is provided by
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assignee
named above, or
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its
agent.
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EXHIBIT
B
[RESERVED]
EXHIBIT
C-1
FORM
OF
INITIAL CERTIFICATION
December
28, 2006
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Mortgage
Asset Securitization Transactions, Inc.
1285
Avenue of the Americas
New
York, New York 10019
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U.S.
Bank National Association
00
Xxxxxxxxxx Xxxxxx
XX-XX-XX0X
Xx.
Xxxx, XX 00000
Attn:
Structured Finance/MASTR 0000-XX0
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Xxxxx
Fargo Bank, N.A.
0000
Xxx Xxxxxxxxx Xxxx
Xxxxxxxx,
Xxxxxxxx 00000
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Re:
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Pooling
and Servicing Agreement, dated as of December 1, 2006,
among
Mortgage Asset Securitization Transactions, Inc., Barclays
Capital
Real Estate Inc. d/b/a HomEq Servicing, Xxxxx Fargo Bank, N.A.
and
U.S. Bank National Association,
Mortgage
Pass-Through Certificates, Series
2006-NC3
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Ladies
and Gentlemen:
Attached
is the [Custodian’s] [Trustee’s] preliminary exception report delivered in
accordance with Section 2.02 of the referenced Pooling and Servicing Agreement
(the “Pooling and Servicing Agreement”). Capitalized terms used but not
otherwise defined herein shall have the meanings set forth in the Pooling and
Servicing Agreement.
The
[Custodian] [Trustee] has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in
the
Pooling and Servicing Agreement. The [Custodian] [Trustee] makes no
representations as to (i) the validity, legality, sufficiency, enforceability
or
genuineness of any of the documents contained in the Mortgage File pertaining
to
the Mortgage Loans identified on the Mortgage Loan Schedule, (ii) the
collectability, insurability, effectiveness or suitability of any such Mortgage
Loan or (iii) whether any Mortgage File included any of the documents specified
in clause (vi) of Section 2.01 of the Pooling and Servicing
Agreement.
Capitalized
words and phrases used herein shall have the respective meanings assigned to
them in the Pooling and Servicing Agreement. This Certificate is qualified
in
all respects by the terms of said Pooling and Servicing Agreement.
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[TRUSTEE/
CUSTODIAN]
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By:
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Name:
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Title:
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EXHIBIT
C-2
FORM
OF
FINAL CERTIFICATION
[Date]
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Mortgage
Asset Securitization Transactions, Inc.
1285
Avenue of the Americas
New
York, New York 10019
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U.S.
Bank National Association
00
Xxxxxxxxxx Xxxxxx
XX-XX-XX0X
Xx.
Xxxx, XX 00000
Attn:
Structured Finance/MASTR 0000-XX0
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Xxxxx
Fargo Bank, N.A.
0000
Xxx Xxxxxxxxx Xxxx
Xxxxxxxx,
Xxxxxxxx 00000
|
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Re:
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Pooling
and Servicing Agreement, dated as of December 1, 2006, among Mortgage
Asset Securitization Transactions, Inc., Barclays Capital Real Estate
Inc.
d/b/a HomEq Servicing, Xxxxx Fargo Bank, N.A. and U.S. Bank National
Association, Mortgage
Pass-Through Certificates, Series
2006-NC3
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Ladies
and Gentlemen:
In
accordance with Section 2.02 of the Pooling and Servicing Agreement, the
undersigned, as [Custodian’s] [Trustee’s], hereby certifies that as to each
Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage
loan
paid in full or listed on Schedule I hereto) it (or its custodian) has received
the applicable documents listed in Section 2.01 of the Pooling and Servicing
Agreement.
The
undersigned hereby certifies that as to each Mortgage Loan identified on the
Mortgage Loan Schedule, other than any Mortgage Loan listed on Schedule I
hereto, it has reviewed the documents listed above and has determined that
each
such document appears to be complete and, based on an examination of such
documents, the information set forth in the Mortgage Loan Schedule is
correct.
The
[Custodian’s] [Trustee’s] has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in
the
Pooling and Servicing Agreement. The [Custodian’s] [Trustee’s] makes no
representations as to (i) the validity, legality, sufficiency, enforceability
or
genuineness of any of the documents contained in the Mortgage File pertaining
to
the Mortgage Loans identified on the Mortgage Loan Schedule, (ii) the
collectability, insurability, effectiveness or suitability of any such Mortgage
Loan or (iii) whether any Mortgage File included any of the documents specified
in clause (vi) of Section 2.01 of the Pooling and Servicing
Agreement.
Capitalized
words and phrases used herein shall have the respective meanings assigned to
them in the Pooling and Servicing Agreement. This Certificate is qualified
in
all respects by the terms of said Pooling and Servicing Agreement.
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[TRUSTEE/
CUSTODIAN]
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By:
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Name:
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Title:
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EXHIBIT
C-3
FORM
OF
RECEIPT OF MORTGAGE NOTE
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Mortgage
Asset Securitization Transactions, Inc.
1285
Avenue of the Americas
New
York, New York 10019
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U.S.
Bank National Association
00
Xxxxxxxxxx Xxxxxx
XX-XX-XX0X
Xx.
Xxxx, XX 00000
Attn:
Structured Finance/ MASTR 2006-NC3
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Xxxxx
Fargo Bank, N.A.
0000
Xxx Xxxxxxxxx Xxxx
Xxxxxxxx,
Xxxxxxxx 00000
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Barclays
Capital Real Estate Inc. d/b/a HomEq Servicing
0000
Xxxx Xxxxxx
Xxxxx
Xxxxxxxxx, Xxxxxxxxxx 00000
|
|
Re:
|
Pooling
and Servicing Agreement, dated as of December 1, 2006, among Mortgage
Asset Securitization Transactions, Inc., Barclays Capital Real Estate
Inc.
d/b/a HomEq Servicing, Xxxxx Fargo Bank, N.A. and U.S. Bank National
Association, Mortgage Pass-Through Certificates, Series
2006-NC3
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Ladies
and Gentlemen:
Pursuant
to Section 2.01 of the Pooling and Servicing Agreement, dated as of December
1,
2006, among Mortgage Asset Securitization Transactions, Inc. as Depositor,
Barclays Capital Real Estate Inc. d/b/a HomEq Servicing as Servicer (the
“Servicer”), Xxxxx Fargo Bank, N.A. as Master Servicer and Trust Administrator
(the “Master Servicer” and the “Trust Administrator”), Deutsche Bank National
Trust Company as Custodian (the “Custodian”) and U.S. Bank National Association
as Trustee, we hereby acknowledge the receipt of the original Mortgage Notes
(a
copy of which is attached hereto as Exhibit 1) with any exceptions thereto
listed on Exhibit 2.
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[TRUSTEE/
CUSTODIAN]
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By:
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Name:
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Title:
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EXHIBIT
D
FORM
OF
ASSIGNMENT AND RECOGNITION AGREEMENT
ASSIGNMENT
AND RECOGNITION AGREEMENT
THIS
ASSIGNMENT AND RECOGNITION AGREEMENT, dated December 28, 2006, (“Agreement”)
among
UBS Real Estate Securities Inc. (“Assignor”),
Mortgage Asset Securitization Transactions, Inc. (“Assignee”)
and
New Century Mortgage Corporation (the “Company”):
For
and
in consideration of the sum of TEN DOLLARS ($10.00) and other valuable
consideration the receipt and sufficiency of which hereby are acknowledged,
and
of the mutual covenants herein contained, the parties hereto hereby agree
as
follows:
I.
Assignment and Conveyance
The
Assignor hereby conveys, sells, grants, transfers and assigns to the Assignee
(x) all of the right, title and interest of the Assignor, as purchaser, in,
to
and under (a) those certain Mortgage Loans listed as being originated by
the
Company on the schedule (the “Mortgage
Loan Schedule”)
attached hereto as Exhibit A (the “Mortgage
Loans”)
and
(b) except as described below, that certain Master Seller’s Purchase, Warranties
and Interim Servicing Agreement dated as of May 1, 2004 as amended (the
“Purchase
Agreement”),
among
the Assignor, as initial purchaser (the “Purchaser”),
New
Century Mortgage Corporation, as seller and the Company, as originator and
servicer, solely insofar as the Purchase Agreement relates to the Mortgage
Loans
and (y) other than as provided below with respect to the enforcement of
representations and warranties, none of the obligations of the Assignor under
the Purchase Agreement.
The
Assignor specifically reserves and does not assign to the Assignee hereunder
any
and all right, title and interest in, to and under and any obligations of
the
Assignor with respect to any mortgage loans subject to the Purchase Agreement
which are not the Mortgage Loans set forth on the Mortgage Loan Schedule
and are
not the subject of this Agreement.
II.
Recognition of the Company
From
and
after the date hereof, the Company shall and does hereby recognize that the
Assignee will transfer the Mortgage Loans and assign its rights under the
Purchase Agreement (solely to the extent set forth herein) and this Agreement
to
MASTR Asset-Backed Securities Trust 2006-NC3 (the “Trust”) created pursuant to a
Pooling and Servicing Agreement, dated as of December 1, 2006 (the “Pooling
Agreement”), among
the
Assignee, Xxxxx Fargo Bank, N.A. as master servicer and trust administrator
(including its successors in interest and any successor servicers under the
Pooling Agreement, the “Master Servicer” or “Trust Administrator”), Barclays
Capital Real Estate Inc. d/b/a HomEq Servicing, as servicer (including its
successors in interest and any successor servicer under the Pooling Agreement,
the “Servicer”) and U.S. Bank National Association, as trustee (including its
successors in interest and any successor trustees under the Pooling Agreement,
the “Trustee”).
The
Company hereby acknowledges and agrees that from and after the date hereof
(i)
the Trust will be the owner of the Mortgage Loans, (ii) the Trust
(including the Trustee, the Trust Administrator, the Master Servicer and
the
Servicer acting on the Trust’s behalf) shall have all the rights and remedies
available to the Assignor, insofar as they relate to the Mortgage Loans,
under
the Purchase Agreement, including, without limitation, the enforcement of
the
document delivery requirements and remedies with respect to breaches of
representations and warranties set forth in the Purchase Agreement, and shall
be
entitled to enforce all of the obligations of the Company thereunder insofar
as
they relate to the Mortgage Loans and (iii) all references to the Purchaser
(insofar as they relate to the rights, title and interest and, with respect
to
obligations of the Purchaser, only insofar as they relate to the enforcement
of
the representations, warranties and covenants of the Company) or the Custodian
under the Purchase Agreement insofar as they relate to the Mortgage Loans,
shall
be deemed to refer to the Trust (including the Trustee, the Trust Administrator,
the Master Servicer and the Servicer acting on the Trust’s behalf). Neither the
Company nor the Assignor shall amend or agree to amend, modify, waiver, or
otherwise alter any of the terms or provisions of the Purchase Agreement
which
amendment, modification, waiver or other alteration would in any way affect
the
Mortgage Loans or the Company’s performance under the Purchase Agreement with
respect to the Mortgage Loans without the prior written consent of the
Trustee.
III.
Representations, Warranties and Covenants
1. The
Company warrants and represents to the Assignor, the Assignee and the Trust
as
of the date hereof that:
(a) The
Company is duly organized, validly existing and in good standing under the
laws
of the jurisdiction of its incorporation;
(b) The
Company has full power and authority to execute, deliver and perform its
obligations under this Agreement and has full power and authority to perform
its
obligations under the Purchase Agreement. The execution by the Company of
this
Agreement is in the ordinary course of the Company’s business and will not
conflict with, or result in a breach of, any of the terms, conditions or
provisions of the Company’s charter or bylaws or any legal restriction, or any
material agreement or instrument to which the Company is now a party or by
which
it is bound, or result in the violation of any law, rule, regulation, order,
judgment or decree to which the Company or its property is subject. The
execution, delivery and performance by the Company of this Agreement have
been
duly authorized by all necessary corporate action on part of the Company.
This
Agreement has been duly executed and delivered by the Company, and, upon
the due
authorization, execution and delivery by the Assignor and the Assignee, will
constitute the valid and legally binding obligation of the Company, enforceable
against the Company in accordance with its terms except as enforceability
may be
limited by bankruptcy, reorganization, insolvency, moratorium or other similar
laws now or hereafter in effect relating to creditors’ rights generally, and by
general principles of equity regardless of whether enforceability is considered
in a proceeding in equity or at law;
(c) No
consent, approval, order or authorization of, or declaration, filing or
registration with, any governmental entity is required to be obtained or
made by
the Company in connection with the execution, delivery or performance by
the
Company of this Agreement except as has already been obtained; and
(d) There
is
no action, suit, proceeding or investigation pending or threatened against
the
Company, before any court, administrative agency or other tribunal, which
would
draw into question the validity of this Agreement or the Purchase Agreement,
or
which, either in any one instance or in the aggregate, would result in any
material adverse change in the ability of the Company to perform its obligations
under this Agreement or the Purchase Agreement, and the Company is
solvent.
2. Pursuant
to Section 11 of the Purchase Agreement, the Company hereby represents and
warrants, for the benefit of the Assignor, the Assignee and the Trust, that
the
representations and warranties set forth in Sections 7.01 and 7.02 of the
Purchase Agreement (set forth on Schedule 1), are true and correct as of
the
Closing Date (as defined in the Pooling and Servicing Agreement) as if such
representations and warranties were made on such date, except that the
representation and warranty set forth in Section 7.02(a) shall, for the purposes
of this Agreement, relate to the Mortgage Loan Schedule attached
hereto.
3. [Reserved].
4. The
Assignor hereby makes the following representation and warranty as of the
date
hereof:
(a) Each
Mortgage Loan at the time it was made complied in all material respects with
applicable local, state, and federal laws, including, but not limited to,
all
applicable predatory and abusive lending laws;
(b) None
of
the Mortgage Loans are High Cost as defined by any applicable predatory and
abusive lending laws;
(c) No
Mortgage Loan is a High Cost Loan or Covered Loan, as applicable (as such
terms
are defined in the then current Standard & Poor’s LEVELS®
Glossary
which is now Version 5.7 Revised, Appendix E);
(d) No
mortgage loan originated on or after October 1, 2002 through March 6, 2003
is
governed by the Georgia Fair Lending Act.
IV.
Remedies for Breach of Representations and Warranties
The
Company hereby acknowledges and agrees that the remedies available to the
Assignor, the Assignee and the Trust (including the Trustee and the Master
Servicer acting on the Trust’s behalf) in connection with any breach of the
representations and warranties made by the Company set forth in Section 4
hereof
shall be as set forth in Subsection 7.03 of the Purchase Agreement as if
they
were set forth herein (including without limitation the repurchase and indemnity
obligations set forth therein).
The
Assignor hereby acknowledges and agrees that the remedies available to the
Assignee and the Trust (including the Trustee and the Master Servicer acting
on
the Trust’s behalf) in connection with any breach of the representations and
warranties made by the Assignor set forth in Section 3 hereof shall be as
set
forth in Section 2.03 of the Pooling and Servicing Agreement as if they were
set
forth herein (including without limitation the repurchase obligations set
forth
therein). The Assignor hereby acknowledges and agrees that a breach of any
one
of the representations set forth in Sections 3 above will be deemed to
materially adversely affect the interests of the certificateholders and shall
require a repurchase of the affected Mortgage Loan(s).
V.
Miscellaneous
This
Agreement shall be construed in accordance with the laws of the State of
New
York, without regard to conflicts of law principles, and the obligations,
rights
and remedies of the parties hereunder shall be determined in accordance with
such laws.
No
term
or provision of this Agreement may be waived or modified unless such waiver
or
modification is in writing and signed by the party against whom such waiver
or
modification is sought to be enforced, with the prior written consent of
the
Trustee and the Trust Administrator.
This
Agreement shall inure to the benefit of (i) the successors and assigns of
the
parties hereto and (ii) the Trust (including the Trustee, the Trust
Administrator and the Master Servicer acting on the Trust’s behalf). Any entity
into which Assignor, Assignee or Company may be merged or consolidated shall,
without the requirement for any further writing, be deemed Assignor, Assignee
or
Company, respectively, hereunder.
Each
of
this Agreement and the Purchase Agreement shall survive the conveyance of
the
Mortgage Loans and the assignment of the Purchase Agreement (to the extent
assigned hereunder) by Assignor to Assignee and by Assignee to the Trust
and
nothing contained herein shall supersede or amend the terms of the Purchase
Agreement.
This
Agreement may be executed simultaneously in any number of counterparts. Each
counterpart shall be deemed to be an original and all such counterparts shall
constitute one and the same instrument.
In
the
event that any provision of this Agreement conflicts with any provision of
the
Purchase Agreement with respect to the Mortgage Loans, the terms of this
Agreement shall control.
Capitalized
terms used in this Agreement (including the exhibits hereto) but not defined
in
this Agreement shall have the meanings given to such terms in the Purchase
Agreement.
[SIGNATURE
PAGE FOLLOWS]
IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed by
their
duly authorized officers as of the date first above written.
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UBS
REAL ESTATE SECURITIES INC.
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Title:
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MORTGAGE
ASSET SECURITIZATION TRANSACTIONS, INC.
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NEW
CENTURY MORTGAGE CORPORATION
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EXHIBIT
A
Mortgage
Loan Schedule
Available
Upon Request
SCHEDULE
1
Capitalized
terms used herein but not defined in this Schedule 1 shall have the meanings
given to such terms in the Purchase Agreement:
Subsection
7.01 Representations
and Warranties Regarding the Seller.
The
Seller and the Servicer represent, warrant and covenant to the Purchaser
that as
of the date hereof and as of the related Closing Date:
(a) Due
Organization and Authority.
Each of
the Seller and the Servicer is a corporation duly organized, validly existing
and in good standing under the laws of the state of California and has all
licenses necessary to carry on its business as now being conducted and is
licensed, qualified and in good standing in each state wherein it owns or
leases
any material properties or where a Mortgaged Property is located, if the
laws of
such state require licensing or qualification in order to conduct business
of
the type conducted by the Seller or the Servicer, as applicable, and in any
event the Seller and the Servicer are in compliance with the laws of any
such
state to the extent necessary to ensure the enforceability of the related
Mortgage Loan in accordance with the terms of this Agreement and the related
Purchase Price and Terms Letter; the Seller has the full corporate power,
authority and legal right to hold, transfer and convey the Mortgage Loans
and
the Seller and the Servicer have the full corporate power, authority and
legal
right to execute and deliver this Agreement and, as applicable, the related
Purchase Price and Terms Letter and to perform their obligations hereunder;
the
execution, delivery and performance of this Agreement (including all instruments
of transfer to be delivered pursuant to this Agreement and the related Purchase
Price and Terms Letter) by the Seller and the Servicer, and the consummation
of
the transactions contemplated hereby have been duly and validly authorized
by
each of the Seller and the Servicer; this Agreement, the related Purchase
Price
and Terms Letter and all agreements contemplated hereby have been duly executed
and delivered and constitute the valid, legal, binding and enforceable
obligations of the Seller and the Servicer, regardless of whether such
enforcement is sought in a proceeding in equity or at law; and all requisite
corporate action has been taken by the Seller and the Servicer to make this
Agreement, the related Purchase Price and Terms Letter and all agreements
contemplated hereby valid and binding upon the Seller and the Servicer in
accordance with their terms;
(b) Ordinary
Course of Business.
The
consummation of the transactions contemplated by this Agreement and the related
Purchase Price and Terms Letter are in the ordinary course of business of
the
Seller and the Servicer, and the transfer, assignment and conveyance of the
Mortgage Notes and the Mortgages by the Seller pursuant to this Agreement
and
the related Purchase Price and Terms Letter are not subject to the bulk transfer
or any similar statutory provisions in effect in any applicable
jurisdiction;
(c) No
Conflicts.
Neither
the execution and delivery of this Agreement, the related Purchase Price
and
Terms Letter, the acquisition or origination of the Mortgage Loans by the
Seller
or the Servicer, as applicable, the sale of the Mortgage Loans by the Seller
to
the Purchaser, the consummation of the transactions contemplated hereby,
nor the
fulfillment of or compliance with the terms and conditions of this Agreement,
will conflict with or result in a breach of any of the terms, conditions
or
provisions of the Seller’s or the Servicer’s charter or by-laws or any legal
restriction or, in any material respects, any agreement or instrument to
which
the Seller or the Servicer is now a party or by which it is bound, or constitute
a default or result in an acceleration under any of the foregoing, or result
in
the violation of any law, rule, regulation, order, judgment or decree to
which
the Seller or the Servicer or its property is subject, or result in the creation
or imposition of any lien, charge or encumbrance that would have an adverse
effect upon any of its properties pursuant to the terms of any mortgage,
contract, deed of trust or other instrument, or impair the ability of the
Purchaser to realize on the Mortgage Loans, impair the value of the Mortgage
Loans, or impair the ability of the Purchaser to realize the full amount
of any
insurance benefits accruing pursuant to this Agreement;
(d) Ability
to Perform; Solvency.
Neither
the Seller nor the Servicer believes, nor does it have any reason or cause
to
believe, that it cannot perform each and every covenant contained in this
Agreement and the related Purchase Price and Terms Letter. The Seller is
solvent
and the sale of the Mortgage Loans will not cause the Seller to become
insolvent. The sale of the Mortgage Loans is not undertaken with the intent
to
hinder, delay or defraud any of Seller’s creditors;
(e) No
Litigation Pending.
There
is no action, suit, proceeding or investigation pending or threatened against
the Seller or the Servicer, before any court, administrative agency or other
tribunal asserting the invalidity of this Agreement, seeking to void the
sale of
the Mortgage Loans by the Servicer or Seller or prevent the consummation
of any
of the transactions contemplated by this Agreement or which, either in any
one
instance or in the aggregate, may result in any material adverse change in
the
business, operations, financial condition, properties or assets of the Seller
or
the Servicer, or in any material impairment of the right or ability of the
Seller or the Servicer to carry on its business substantially as now conducted,
or in any material liability on the part of the Seller or the Servicer, or
which
would draw into question the validity of this Agreement, the related Purchase
Price and Terms Letter or the Mortgage Loans or of any action taken or to
be
taken in connection with the obligations of the Seller or the Servicer
contemplated herein, or which would be likely to impair materially the ability
of the Seller or the Servicer to perform under the terms of this
Agreement;
(f) No
Consent Required.
No
consent, approval, authorization or order of, or registration or filing with,
or
notice to any court or governmental agency or body including HUD, the FHA
or the
VA is required for the execution, delivery and performance by the Seller
or the
Servicer of or compliance by the Seller or the Servicer with this Agreement
or
the Mortgage Loans, the delivery of a portion of the Mortgage Files to the
Custodian or the sale of the Mortgage Loans or the consummation of the
transactions contemplated by this Agreement, or if required, such approval
has
been obtained prior to the related Closing Date;
(g) Selection
Process.
The
Mortgage Loans were selected from among the outstanding one- to four-family
mortgage loans in the Seller’s portfolio at the related Closing Date as to which
the representations and warranties set forth in Subsection
7.02
could be
made and such selection was not made in a manner so as to affect adversely
the
interests of the Purchaser;
(h) Delivery
to the Custodian.
The
Mortgage Note, the Mortgage, the Assignment of Mortgage and any other documents
required to be delivered with respect to each Mortgage Loan pursuant to this
Agreement and the related Purchase Price and Terms Letter, shall be delivered
to
the Custodian all in compliance with the specific requirements of this
Agreement. With respect to each Mortgage Loan, the Seller will be in possession
of a complete Mortgage File in compliance with Exhibit A
hereto,
except for such documents as will be delivered to the Custodian;
(i) Mortgage
Loan Characteristics.
The
characteristics of the Mortgage Loans are as set forth on the description
of the
pool characteristics for the Mortgage Loans delivered pursuant to Section 9
on the
related Closing Date in the form attached as Exhibit
G
hereto;
(j) No
Untrue Information.
Neither
this Agreement, the related Purchase Price and Terms Letter nor any information,
statement, tape, diskette, report, form, or other document furnished or to
be
furnished pursuant to this Agreement or any Reconstitution Agreement or in
connection with the transactions contemplated hereby (including any
Securitization Transfer or Whole Loan Transfer) contains or will contain
any
untrue statement of fact or omits or will omit to state a fact necessary
to make
the statements contained herein or therein not misleading;
(k) Financial
Statements.
Each of
the Seller and the Servicer have delivered to the Purchaser financial statements
as to its last three complete fiscal years and any later quarter ended more
than
60 days prior to the execution of this Agreement. All such financial statements
fairly present the pertinent results of operations and changes in financial
position for each of such periods and the financial position at the end of
each
such period of the Seller or the Servicer, as applicable, and its subsidiaries
and have been prepared in accordance with generally accepted accounting
principles consistently applied throughout the periods involved, except as
set
forth in the notes thereto. There has been no change in the business,
operations, financial condition, properties or assets of the Seller or the
Servicer since the date of the Seller’s or the Servicer’s financial statements
that would have a material adverse effect on its ability to perform its
obligations under this Agreement. The Seller and the Servicer have completed
any
forms requested by the Purchaser in a timely manner and in accordance with
the
provided instructions;
(l) No
Brokers.
Neither
the Seller nor the Servicer have dealt with any broker, investment banker,
agent
or other person that may be entitled to any commission or compensation in
connection with the sale of the Mortgage Loans;
(m) Sale
Treatment.
The
Seller intends to reflect the transfer of the Mortgage Loans as a sale on
the
books and records of the Seller and the Seller has determined that the
disposition of the Mortgage Loans pursuant to this Agreement and the related
Purchase Price and Terms Letter will be afforded sale treatment for tax and
accounting purposes;
(n) Owner
of Record.
The
Seller is the owner of record of each Mortgage and the indebtedness evidenced
by
each Mortgage Note, except for an intervening assignments of Mortgage which
have
been sent for recording, upon recordation of which, the Seller will be the
owner
of record of each Mortgage and the indebtedness evidenced by each Mortgage
Note;
and
(o) HUD/Xxxxxxx
Mac.
The
Servicer is an approved seller/servicer for Xxxxxxx Mac in good standing
and is
a HUD approved mortgagee pursuant to Section 203 of the National Housing
Act. No
event has occurred, including but not limited to a change in insurance coverage,
which would make the Servicer unable to comply with Xxxxxxx Mac or HUD
eligibility requirements or which would require notification to Xxxxxxx Mac
or
HUD.
(p) Subsection
7.02Representations
and Warranties Regarding Individual Mortgage Loans.
The
Seller hereby represents and warrants to the Purchaser that, as to each Mortgage
Loan, as of the related Closing Date for such Mortgage Loan:
(a) Mortgage
Loans as Described.
The
information set forth in the Mortgage Loan Schedule is complete, true and
correct;
(b) Payments
Current.
All
payments required to be made up to the related Closing Date for the Mortgage
Loan under the terms of the Mortgage Note, other than payments for which
the
related due date was not thirty or more days prior to the related Closing
Date,
have been made and credited. No Mortgage Loan has a Thirty-day Delinquency
nor
has the Mortgage Loan had a Thirty-day Delinquency at any time since the
origination of the Mortgage Loan. The first Monthly Payment shall be made
with
respect to the Mortgage Loan on its Due Date or during the month in which
it is
due, all in accordance with the terms of the related Mortgage Note;
(c) No
Outstanding Charges.
There
are no defaults in complying with the terms of the Mortgage, and all taxes,
governmental assessments, insurance premiums, water, sewer and municipal
charges, leasehold payments or ground rents which previously became due and
owing have been paid, or an escrow of funds has been established in an amount
sufficient to pay for every such item which remains unpaid and which has
been
assessed but is not yet due and payable. Neither the Seller nor the Servicer
has
advanced funds, or induced, solicited or knowingly received any advance of
funds
by a party other than the Mortgagor, directly or indirectly, for the payment
of
any amount required under the Mortgage Loan, except for interest accruing
from
the date of the Mortgage Note or date of disbursement of the Mortgage Loan
proceeds, whichever is earlier, to the day which precedes by one month the
Due
Date of the first installment of principal and interest;
(d) Original
Terms Unmodified.
The
terms of the Mortgage Note and Mortgage have not been impaired, waived, altered
or modified in any respect, from the date of origination except by a written
instrument which has been recorded, if necessary to protect the interests
of the
Purchaser, and which has been delivered to the Custodian or to such other
Person
as the Purchaser shall designate in writing, and the terms of which are
reflected in the Mortgage Loan Schedule. The substance of any such waiver,
alteration or modification has been approved by any related insurer to the
extent required by the policy, and its terms are reflected on the Mortgage
Loan
Schedule, if applicable. No Mortgagor has been released, in whole or in part,
except in connection with an assumption agreement, approved by any related
insurer, to the extent required by the policy, and which assumption agreement
is
part of the Mortgage Loan File delivered to the Custodian or to such other
Person as the Purchaser shall designate in writing and the terms of which
are
reflected in the Mortgage Loan Schedule;
(e) No
Defenses.
The
Mortgage Loan is not subject to any right of rescission, set-off, counterclaim
or defense, including without limitation the defense of usury, nor will the
operation of any of the terms of the Mortgage Note or the Mortgage, or the
exercise of any right thereunder, render either the Mortgage Note or the
Mortgage unenforceable, in whole or in part, or subject to any right of
rescission, set-off, counterclaim or defense, including without limitation
the
defense of usury, and no such right of rescission, set-off, counterclaim
or
defense has been asserted with respect thereto, and no Mortgagor was a debtor
in
any state or Federal bankruptcy or insolvency proceeding at the time the
Mortgage Loan was originated or as of the related Closing Date;
(f) Hazard
Insurance.
Pursuant to the terms of the Mortgage, all buildings or other improvements
upon
the Mortgaged Property are insured by a Qualified Insurer against loss by
fire,
hazards of extended coverage and such other hazards as are provided for in
the
Xxxxxx Xxx Guides or by Xxxxxxx Mac in an amount representing coverage not
less
than the lesser of (i) the maximum insurable value of the improvements securing
such Mortgage Loans, and (ii) the greater of (a) the outstanding principal
balance of the Mortgage Loan, and (b) an amount such that the proceeds thereof
shall be sufficient to prevent the Mortgagor and/or the mortgagee from becoming
a co-insurer. If required by the National Flood Insurance Act of 1968, as
amended, each Mortgage Loan is covered by a flood insurance policy meeting
the
requirements of the current guidelines of the Federal Insurance Administration
is in effect which policy is in an amount not less than the amount required
by
the Flood Disaster Protection Act of 1973, as amended, conforms to Xxxxxx
Xxx
and Xxxxxxx Mac and is insured by a Qualified Insurer. All individual insurance
policies contain a standard mortgagee clause naming the Servicer and its
successors and assigns as mortgagee, and all premiums thereon have been paid.
The Mortgage obligates the Mortgagor thereunder to maintain the hazard insurance
policy at the Mortgagor’s cost and expense, and on the Mortgagor’s failure to do
so, authorizes the holder of the Mortgage to obtain and maintain such insurance
at such Mortgagor’s cost and expense, and to seek reimbursement therefor from
the Mortgagor. Where required by state law or regulation, the Mortgagor has
been
given an opportunity to choose the carrier of the required hazard insurance,
provided the policy is not a “master”
or
“blanket”
hazard
insurance policy covering a condominium, or any hazard insurance policy covering
the common facilities of a planned unit development. The hazard insurance
policy
is the valid and binding obligation of the insurer, is in full force and
effect,
and will be in full force and effect and inure to the benefit of the Purchaser
upon the consummation of the transactions contemplated by this Agreement.
Neither the Seller nor the Servicer has engaged in, and has no knowledge
of the
Mortgagor’s or any servicer’s having engaged in, any act or omission which would
impair the coverage of any such policy, the benefits of the endorsement provided
for herein, or the validity and binding effect of such policy, without
limitation. No unlawful fee, commission, kickback or other unlawful compensation
or value of any kind has been or will be received, retained or realized by
any
attorney, firm or other person or entity, and no such unlawful items have
been
received, retained or realized by the Seller or the Servicer;
(g) Compliance
with Applicable Laws.
Any and
all requirements of any federal, state or local law including, without
limitation, usury, truth-in-lending, real estate settlement procedures, consumer
credit protection, equal credit opportunity, all predatory, abusive and fair
lending laws and disclosure laws or unfair and deceptive practices laws
applicable to the Mortgage Loan or any related Prepayment Penalty have been
complied with, the consummation of the transactions contemplated hereby will
not
involve the violation of any such laws or regulations, and the Seller shall
maintain in its possession, available for the Purchaser’s inspection, and shall
deliver to the Purchaser upon demand, evidence of compliance with all such
requirements;
(h) No
Satisfaction of Mortgage.
The
Mortgage has not been satisfied, canceled, subordinated or rescinded, in
whole
or in part, and the Mortgaged Property has not been released from the lien
of
the Mortgage, in whole or in part, nor has any instrument been executed that
would effect any such release, cancellation, subordination or rescission.
Neither the Seller nor the Servicer has waived the performance by the Mortgagor
of any action, if the Mortgagor’s failure to perform such action would cause the
Mortgage Loan to be in default, nor has the Seller or the Servicer waived
any
default resulting from any action or inaction by the Mortgagor;
(i) Location
and Type of Mortgaged Property.
The
Mortgaged Property is located in the state identified in the Mortgage Loan
Schedule and consists of real property with a detached single family residence
erected thereon, or a two- to four-family dwelling, or an individual condominium
unit in a low-rise condominium project, or an individual unit in a planned
unit
development or a de minimis planned unit development which is in each case
four
stories or less, provided, however, that any manufactured dwelling shall
conform
with the applicable Xxxxxx Mae and Xxxxxxx Mac requirements regarding such
dwellings and that no Mortgage Loan is secured by a single parcel of real
property with a cooperative housing corporation, a log home or a mobile home
erected thereon or by a mixed-use property, a property in excess of 10 acres,
or
other unique property types. As of the date of origination, no portion of
the
Mortgaged Property was used for commercial purposes, and since the date of
origination, no portion of the Mortgaged Property has been used for commercial
purposes; provided, that Mortgaged Properties which contain a home office
shall
not be considered as being used for commercial purposes as long as the Mortgaged
Property has not been altered for commercial purposes and is not storing
any
chemicals or raw materials other than those commonly used for homeowner repair,
maintenance and/or household purposes. With respect to any Mortgage Loan
secured
by a Mortgaged Property improved by manufactured housing, (i) the related
manufactured housing unit is permanently affixed to the land, and (ii) the
related manufactured housing unit and the related land are subject to a Mortgage
properly filed in the appropriate public recording office and naming the
Originator as mortgagee;
(j) Valid
First Lien.
The
Mortgage is a valid, subsisting, enforceable and perfected, first lien on
the
Mortgaged Property, including all buildings and improvements on the Mortgaged
Property and all installations and mechanical, electrical, plumbing, heating
and
air conditioning systems located in or annexed to such buildings, and all
additions, alterations and replacements made at any time with respect to
the
foregoing. The lien of the Mortgage is subject only to:
| (i) |
the
lien of current real property taxes and assessments not yet due
and
payable;
|
| (ii) |
covenants,
conditions and restrictions, rights of way, easements and other
matters of
the public record as of the date of recording acceptable to prudent
mortgage lending institutions generally and specifically referred
to in
the lender’s title insurance policy delivered to the originator of the
Mortgage Loan and (a) specifically referred to or otherwise
considered in the appraisal made for the originator of the Mortgage
Loan
or (b) which do not adversely affect the Appraised Value of the
Mortgaged Property set forth in such appraisal;
and
|
| (iii) |
other
matters to which like properties are commonly subject which do
not
materially interfere with the benefits of the security intended
to be
provided by the Mortgage or the use, enjoyment, value or marketability
of
the related Mortgaged Property.
|
Any
security agreement, chattel mortgage or equivalent document related to and
delivered in connection with the Mortgage Loan establishes and creates a
valid,
subsisting, enforceable and perfected first lien and first priority security
interest on the property described therein and the Originator had full right
to
sell and assign the same to Seller and Seller had full right to sell and
assign
the same to the Purchaser;
(k) Validity
of Mortgage Documents.
The
Mortgage Note and the Mortgage and any other agreement executed and delivered
by
a Mortgagor in connection with a Mortgage Loan are genuine, and each is the
legal, valid and binding obligation of the maker thereof enforceable in
accordance with its terms. All parties to the Mortgage Note, the Mortgage
and
any other such related agreement had legal capacity to enter into the Mortgage
Loan and to execute and deliver the Mortgage Note, the Mortgage and any such
agreement, and the Mortgage Note, the Mortgage and any other such related
agreement have been duly and properly executed by other such related parties.
No
fraud, error, omission, misrepresentation, negligence or similar occurrence
with
respect to a Mortgage Loan has taken place on the part of any Person, including
without limitation, the Mortgagor, any appraiser, any builder or developer,
or
any other party involved in the origination or servicing of the Mortgage
Loan.
The Seller has reviewed all of the documents constituting the Servicing File
and
has made such inquiries as it deems necessary to make and confirm the accuracy
of the representations set forth herein;
(l) Full
Disbursement of Proceeds.
The
Mortgage Loan has been closed and the proceeds of the Mortgage Loan have
been
fully disbursed and there is no requirement for future advances thereunder,
and
any and all requirements as to completion of any on-site or off-site improvement
and as to disbursements of any escrow funds therefor have been complied with.
All costs, fees and expenses incurred in making or closing the Mortgage Loan
and
the recording of the Mortgage were paid, and the Mortgagor is not entitled
to
any refund of any amounts paid or due under the Mortgage Note or
Mortgage;
(m) Ownership.
The
Seller is the sole owner of record and holder of the Mortgage Loan and the
indebtedness evidenced by each Mortgage Note. The Mortgage Loan is not assigned
or pledged, and the Seller has good, indefeasible and marketable title thereto,
and has full right to transfer and sell the Mortgage Loan to the Purchaser
free
and clear of any encumbrance, equity, participation interest, lien, pledge,
charge, claim or security interest, and has full right and authority subject
to
no interest or participation of, or agreement with, any other party, to sell
and
assign each Mortgage Loan pursuant to this Agreement and the related Purchase
Price and Terms Letter and following the sale of each Mortgage Loan, the
Purchaser will own such Mortgage Loan free and clear of any encumbrance,
equity,
participation interest, lien, pledge, charge, claim or security interest.
The
Seller intends to relinquish all rights to possess, control and monitor the
Mortgage Loan. After the related Closing Date, the Seller will have no right
to
modify or alter the terms of the sale of the Mortgage Loan and the Seller
will
have no obligation or right to repurchase the Mortgage Loan or substitute
another Mortgage Loan, except as provided in this Agreement;
(n) Doing
Business.
All
parties which have had any interest in the Mortgage Loan, whether as mortgagee,
assignee, pledgee or otherwise, are (or, during the period in which they
held
and disposed of such interest, were) (1) in compliance with any and all
applicable licensing requirements of the laws of the state wherein the Mortgaged
Property is located, and (2) either (i) organized under the laws of
such state, or (ii) qualified to do business in such state, or (iii) a
federal savings and loan association, a savings bank or a national bank having
a
principal office in such state, or (3) not doing business in such
state;
(o) LTV.
No
Mortgage Loan has an LTV greater than 95%. No Mortgage Loan had a Combined
Loan-to-Value Ratio at the time of origination of more than 100%;
(p) Title
Insurance.
The
Mortgage Loan is covered by an ALTA lender’s title insurance policy, or with
respect to any Mortgage Loan for which the related Mortgaged Property is
located
in California a CLTA lender’s title insurance policy, or other generally
acceptable form of policy or insurance acceptable to Xxxxxx Xxx or Xxxxxxx
Mac
and each such title insurance policy is issued by a Qualified Insurer, insuring
the Seller, its successors and assigns, or the Originator, its successors
and
assigns, as to the first priority lien of the Mortgage in the original principal
amount of the Mortgage Loan, subject only to the exceptions contained in
clauses
(1) and (2) of paragraph (j) of this Subsection
7.02,
and in
the case of adjustable rate Mortgage Loans, against any loss by reason of
the
invalidity or unenforceability of the lien resulting from the provisions
of the
Mortgage providing for adjustment to the Mortgage Interest Rate and Monthly
Payment;
(q) No
Defaults.
Other
than payments due but not yet delinquent, there is no default, breach, violation
or event which would permit acceleration existing under the Mortgage or the
Mortgage Note and no event which, with the passage of time or with notice
and
the expiration of any grace or cure period, would constitute a default, breach,
violation or event which would permit acceleration, and neither the Seller
nor
the Originator, nor any of their affiliates nor any of their respective
predecessors, have waived any default, breach, violation or event which would
permit acceleration. With respect to each Mortgage Loan which is indicated
by
the Seller to be a Second Lien Mortgage Loan (as reflected on the Mortgage
Loan
Schedule) (i) the First Lien is in full force and effect, (ii) there is no
default, breach, violation or event of acceleration existing under such First
Lien mortgage or the related mortgage note, (iii) no event which, with the
passage of time or with notice and the expiration of any grace or cure period,
would constitute a default, breach, violation or event of acceleration
thereunder, and either (A) the First Lien mortgage contains a provision which
allows or (B) applicable law requires, the mortgagee under the Second Lien
Mortgage Loan to receive notice of, and affords such mortgagee an opportunity
to
cure any default by payment in full or otherwise under the First Lien
mortgage;
(r) No
Mechanics’ Liens.
There
are no mechanics’ or similar liens or claims which have been filed for work,
labor or material (and no rights are outstanding that under law could give
rise
to such liens) affecting the related Mortgaged Property which are or may
be
liens prior to, or equal or coordinate with, the lien of the related
Mortgage;
(s) Location
of Improvements; No Encroachments.
All
improvements which were considered in determining the Appraised Value of
the
Mortgaged Property lay wholly within the boundaries and building restriction
lines of the Mortgaged Property, and no improvements on adjoining properties
encroach upon the Mortgaged Property. No improvement located on or being
part of
the Mortgaged Property is in violation of any applicable zoning law or
regulation;
(t) Origination;
Payment Terms.
Each
Mortgage Loan was either originated by the Originator or acquired by the
Originator from a Third Party Originator or Qualified Correspondent and,
subsequent to the Originator’s origination or acquisition of such Mortgage Loan,
the Originator conveyed the Mortgage Loan to the Seller. Either (a) the Mortgage
Loan was originated by a mortgagee approved by the Secretary of Housing and
Urban Development pursuant to Sections 203 and 211 of the National Housing
Act, a savings and loan association, a savings bank, a commercial bank, credit
union, insurance company or other similar institution which is supervised
and
examined by a federal or state authority, or (b) the following requirements
have
been met with respect to the Mortgage Loan: the Seller and the Originator
meet
the requirements set forth in clause (a), and (i) such Mortgage Loan was
underwritten in accordance with standards established by the Seller and the
Originator, using application forms and related credit documents approved
by the
Seller and the Originator, (ii) the Seller and the Originator approved each
application and the related credit documents before a commitment by the
correspondent was issued, and no such commitment was issued until the Seller
and
the Originator agreed to fund such Mortgage Loan, (iii) the closing documents
for such Mortgage Loan were prepared on forms approved by the Seller and
the
Originator, and (iv) such Mortgage Loan was actually funded by the Seller
and
the Originator and was purchased by the Seller and the Originator at closing
or
soon thereafter. The documents, instruments and agreements submitted for
loan
underwriting were not falsified and contain no untrue statement of material
fact
or omit to state a material fact required to be stated therein or necessary
to
make the information and statements therein not misleading. No Mortgage Loan
contains terms or provisions which would result in negative amortization.
Except
with respect to IO Mortgage Loans, principal payments on the Mortgage Loan
commenced no more than sixty days after funds were disbursed in connection
with
the Mortgage Loan. The Mortgage Interest Rate as well as the Lifetime Rate
Cap,
the Initial Rate Cape and the Periodic Cap, are as set forth on Exhibit
G
hereto.
The Mortgage Note is payable in equal monthly installments of principal and
interest, which installments of interest, with respect to Adjustable Rate
Mortgage Loans, are subject to change due to the adjustments to the Mortgage
Interest Rate on each Interest Rate Adjustment Date, with interest calculated
and payable in arrears, sufficient to amortize the Mortgage Loan fully by
the
stated maturity date, over an original term of not more than thirty years
from
commencement of amortization; provided that
with
respect to IO Mortgage Loans, The Mortgage Note is initially payable in equal
monthly installments of interest, with interest calculated and payable in
arrears, for such period set forth in the related Mortgage Note and then
the
Mortgage Note is payable in equal monthly installments of principal and
interest, with interest calculated and payable in arrears, sufficient to
amortize the Mortgage Loan fully by the stated maturity date, over the remaining
term of the IO Mortgage Loan. The Mortgage Loan is payable on the first day
of
each month. There are no Mortgage Loans which contain a provision allowing
the
Mortgagor to convert the Mortgage Note from an adjustable interest rate Mortgage
Note to a fixed interest rate Mortgage Note;
(u) Customary
Provisions.
The
Mortgage contains customary and enforceable provisions such as to render
the
rights and remedies of the holder thereof adequate for the realization against
the Mortgaged Property of the benefits of the security provided thereby,
including, (i) in the case of a Mortgage designated as a deed of trust, by
trustee’s sale, and (ii) otherwise by judicial foreclosure. Upon default by
a Mortgagor on a Mortgage Loan and foreclosure on, or trustee’s sale of, the
Mortgaged Property pursuant to the proper procedures, the holder of the Mortgage
Loan will be able to deliver good and merchantable title to the Mortgaged
Property. There is no homestead or other exemption available to a Mortgagor
which would interfere with the right to sell the Mortgaged Property at a
trustee’s sale or the right to foreclose the Mortgage, subject to applicable
federal and state laws and judicial precedent with respect to bankruptcy
and
right of redemption or similar law;
(v) Conformance
with Agency and Underwriting Standards.
The
Mortgage Loan was underwritten in accordance with the Underwriting Standards
(a
copy of which is attached hereto as Exhibit
H).
The
Mortgage Note and Mortgage are on forms acceptable to Xxxxxxx Mac or Xxxxxx
Mae
and neither the Seller nor the Originator has made any representations to
a
Mortgagor that are inconsistent with the mortgage instruments used;
(w) Occupancy
of the Mortgaged Property.
As of
the related Closing Date the Mortgaged Property is lawfully occupied under
applicable law. All inspections, licenses and certificates required to be
made
or issued with respect to all occupied portions of the Mortgaged Property
and,
with respect to the use and occupancy of the same, including but not limited
to
certificates of occupancy and fire underwriting certificates, have been made
or
obtained from the appropriate authorities;
(x) No
Additional Collateral.
The
Mortgage Note is not and has not been secured by any collateral except the
lien
of the corresponding Mortgage and the security interest of any applicable
security agreement or chattel mortgage referred to in clause (j)
above;
(y) Deeds
of Trust.
In the
event the Mortgage constitutes a deed of trust, a trustee, authorized and
duly
qualified under applicable law to serve as such, has been properly designated
and currently so serves and is named in the Mortgage, and no fees or expenses
are or will become payable by the Purchaser to the trustee under the deed
of
trust, except in connection with a trustee’s sale after default by the
Mortgagor;
(z) Delivery
of Mortgage Documents.
The
Mortgage Note, the Mortgage, the Assignment of Mortgage and any other documents
required to be delivered under this Agreement and the related Purchase Price
and
Terms Letter for each Mortgage Loan have been delivered to the Custodian.
The
Seller is in possession of a complete, true and accurate Mortgage File in
compliance with Exhibit A
hereto,
except for such documents the originals of which have been delivered to the
Custodian;
(aa) Condominiums/Planned
Unit Developments.
If the
Mortgaged Property is a condominium unit or a planned unit development (other
than a de minimis planned unit development) such condominium or planned unit
development project such Mortgage Loan was originated in accordance with,
and
the Mortgaged Property meets the guidelines set forth in the Originator’s
Underwriting Guidelines;
(bb) Transfer
of Mortgage Loans.
The
Assignment of Mortgage with respect to each Mortgage Loan is in recordable
form
and is acceptable for recording under the laws of the jurisdiction in which
the
Mortgaged Property is located. The transfer, assignment and conveyance of
the
Mortgage Notes and the Mortgages by the Seller are not subject to the bulk
transfer or similar statutory provisions in effect in any applicable
jurisdiction;
(cc) Due-On-Sale.
With
respect to each Fixed Rate Mortgage Loan, the Mortgage contains an enforceable
provision for the acceleration of the payment of the unpaid principal balance
of
the Mortgage Loan in the event that the Mortgaged Property is sold or
transferred without the prior written consent of the mortgagee thereunder,
and
to the best of the Seller’s knowledge, such provision is
enforceable;
(dd) No
Buydown Provisions; No Graduated Payments or Contingent
Interests.
The
Mortgage Loan does not contain provisions pursuant to which Monthly Payments
are
paid or partially paid with funds deposited in any separate account established
by the Seller, the Originator, the Mortgagor, or anyone on behalf of the
Mortgagor, or paid by any source other than the Mortgagor nor does it contain
any other similar provisions which may constitute a “buydown” provision. The
Mortgage Loan is not a graduated payment mortgage loan and the Mortgage Loan
does not have a shared appreciation or other contingent interest
feature;
(ee) Consolidation
of Future Advances.
Any
future advances made to the Mortgagor prior to the related Cut-off Date have
been consolidated with the outstanding principal amount secured by the Mortgage,
and the secured principal amount, as consolidated, bears a single interest
rate
and single repayment term. The lien of the Mortgage securing the consolidated
principal amount is expressly insured as having a first lien priority with
respect to each Mortgage Loan which is indicated by the Seller to be a First
Lien (as reflected on the Mortgage Loan Schedule), by a title insurance policy,
an endorsement to the policy insuring the mortgagee’s consolidated interest or
by other title evidence acceptable to Xxxxxx Xxx and Xxxxxxx Mac. The
consolidated principal amount does not exceed the original principal amount
of
the Mortgage Loan;
(ff) Mortgaged
Property Undamaged; No Condemnation Proceedings.
There
is no proceeding pending or threatened for the total or partial condemnation
of
the Mortgaged Property. The Mortgaged Property is undamaged by waste, fire,
earthquake or earth movement, windstorm, flood, tornado or other casualty
so as
to affect adversely the value of the Mortgaged Property as security for the
Mortgage Loan or the use for which the premises were intended and each Mortgaged
Property is in good repair. There have not been any condemnation proceedings
with respect to the Mortgaged Property neither the Seller nor the Originator
have knowledge of any such proceedings in the future;
(gg) Collection
Practices; Escrow Deposits; Interest Rate Adjustments.
The
origination, servicing and collection practices used by the Servicer, the
Seller, the Originator and any prior servicer with respect to the Mortgage
Loan
have been in all respects in compliance with Accepted Servicing Practices,
applicable laws and regulations, and have been in all respects legal and
proper
and prudent in the mortgage origination and servicing business. With respect
to
escrow deposits and Escrow Payments (other than with respect to each Mortgage
Loan which is indicated by the Seller to be a Second Lien Mortgage Loan and
for
which the mortgagee under the First Lien is collecting Escrow Payments (as
reflected on the Mortgage Loan Schedule), all such payments are in the
possession of, or under the control of, the Servicer, the Seller or the
Originator and there exist no deficiencies in connection therewith for which
customary arrangements for repayment thereof have not been made. All Escrow
Payments have been collected in full compliance with state and federal law
and
the provisions of the related Mortgage Note and Mortgage. An escrow of funds
is
not prohibited by applicable law and has been established in an amount
sufficient to pay for every item that remains unpaid and has been assessed
but
is not yet due and payable. No escrow deposits or Escrow Payments or other
charges or payments due the Seller have been capitalized under the Mortgage
or
the Mortgage Note. All Mortgage Interest Rate adjustments have been made
in
strict compliance with state and federal law and the terms of the related
Mortgage and Mortgage Note on the related Interest Rate Adjustment Date.
If,
pursuant to the terms of the Mortgage Note, another index was selected for
determining the Mortgage Interest Rate, the same index was used with respect
to
each Mortgage Note which required a new index to be selected, and such selection
did not conflict with the terms of the related Mortgage Note. The Seller
or the
Originator executed and delivered any and all notices required under applicable
law and the terms of the related Mortgage Note and Mortgage regarding the
Mortgage Interest Rate and the Monthly Payment adjustments. Any interest
required to be paid pursuant to state, federal and local law has been properly
paid and credited;
(hh) Other
Insurance Policies.
No
action, inaction or event has occurred and no state of facts exists or has
existed that has resulted or will result in the exclusion from, denial of,
or
defense to coverage under any applicable, special hazard insurance policy,
or
bankruptcy bond, irrespective of the cause of such failure of coverage. In
connection with the placement of any such insurance, no commission, fee,
or
other compensation has been or will be received by the Seller or the Originator
or by any officer, director, or employee of the Seller or the Originator
or any
designee of the Seller or the Originator or any corporation in which the
Seller
or the Originator or any officer, director, or employee had a financial interest
at the time of placement of such insurance;
(ii) No
Violation of Environmental Laws.
The
Mortgaged Property is free from any and all toxic or hazardous substances
and
there exists no violation of any local, state or federal environmental law,
rule
or regulation. There is no pending action or proceeding directly involving
the
Mortgaged Property in which compliance with any environmental law, rule or
regulation is an issue; there is no violation of any environmental law, rule
or
regulation with respect to the Mortgage Property; and nothing further remains
to
be done to satisfy in full all requirements of each such law, rule or regulation
constituting a prerequisite to use and enjoyment of said property;
(jj) Servicemembers
Civil Relief Act.
The
Mortgagor has not notified the Seller or Servicer requesting relief under
the
Soldiers’ and Sailors’ Civil Relief Act of 1940 or the Servicemembers Civil
Relief Act, and the Seller or Servicer has no knowledge of any relief requested
or allowed to the Mortgagor under the Soldiers’ and Sailors’ Civil Relief Act of
1940 or the Servicemembers Civil Relief Act or any similar state
laws;
(kk) Appraisal.
The
Mortgage File contains an appraisal of the related Mortgaged Property which,
(a)
with respect to First Lien Mortgage Loans, was on appraisal form 1004 or
form
2055 with an interior inspection, or (b) with respect to Second Lien Mortgage
Loans, was on appraisal form 704, 2065 or 2055 with an exterior only inspection,
and (c) with respect to (a) or (b) above, was made and signed, prior to the
approval of the Mortgage Loan application, by a qualified appraiser, duly
appointed by the Seller, who had no interest, direct or indirect in the
Mortgaged Property or in any loan made on the security thereof, whose
compensation is not affected by the approval or disapproval of the Mortgage
Loan
and who met the minimum qualifications of Xxxxxx Xxx and Xxxxxxx Mac. Each
appraisal of the Mortgage Loan was made in accordance with the relevant
provisions of the Financial Institutions Reform, Recovery, and Enforcement
Act
of 1989;
(ll) Disclosure
Materials.
The
Mortgagor has executed a statement to the effect that the Mortgagor has received
all disclosure materials required by, and the Originator has complied with,
all
applicable law with respect to the making of the Mortgage Loans. The Seller
shall cause the Originator to maintain such statement in the Mortgage
File;
(mm) Construction
or Rehabilitation of Mortgaged Property.
No
Mortgage Loan was made in connection with the construction or rehabilitation
of
a Mortgaged Property or facilitating the trade-in or exchange of a Mortgaged
Property;
(nn) Value
of Mortgaged Property.
The
Seller has no knowledge of any circumstances existing that could reasonably
be
expected to adversely affect the value or the marketability of any Mortgaged
Property or Mortgage Loan or to cause the Mortgage Loans to prepay during
any
period materially faster or slower than similar mortgage loans held by the
Seller generally secured by properties in the same geographic area as the
related Mortgaged Property;
(oo) No
Defense to Insurance Coverage.
The
Seller has caused or will cause to be performed any and all acts required
to
preserve the rights and remedies of the Purchaser in any insurance policies
applicable to the Mortgage Loans including, without limitation, any necessary
notifications of insurers, assignments of policies or interests therein,
and
establishments of coinsured, joint loss payee and mortgagee rights in favor
of
the Purchaser. No action has been taken or failed to be taken, no event has
occurred and no state of facts exists or has existed on or prior to the related
Closing Date (whether or not known to the Seller on or prior to such date)
which
has resulted or will result in an exclusion from, denial of, or defense to
coverage under any primary mortgage insurance (including, without limitation,
any exclusions, denials or defenses which would limit or reduce the availability
of the timely payment of the full amount of the loss otherwise due thereunder
to
the insured) whether arising out of actions, representations, errors, omissions,
negligence, or fraud of the Seller, the Originator, the related Mortgagor
or any
party involved in the application for such coverage, including the appraisal,
plans and specifications and other exhibits or documents submitted therewith
to
the insurer under such insurance policy, or for any other reason under such
coverage, but not including the failure of such insurer to pay by reason
of such
insurer’s breach of such insurance policy or such insurer’s financial inability
to pay;
(pp) Escrow
Analysis.
With
respect to each Mortgage, the Seller or the Originator has within the last
twelve months (unless such Mortgage was originated within such twelve month
period) analyzed the required Escrow Payments for each Mortgage and adjusted
the
amount of such payments so that, assuming all required payments are timely
made,
any deficiency will be eliminated on or before the first anniversary of such
analysis, or any overage will be refunded to the Mortgagor, in accordance
with
RESPA and any other applicable law;
(qq) Prior
Servicing.
Each
Mortgage Loan has been serviced in all material respects in strict compliance
with Accepted Servicing Practices and the Servicer has reported the Mortgagor
credit files to each of the three credit repositories in a timely
manner;
(rr) Credit
Information.
As to
each consumer report (as defined in the Fair Credit Reporting Act, Public
Law
91-508) or other credit information furnished by the Seller or the Originator
to
the Purchaser, that Seller or the Originator, as applicable, has full right
and
authority and is not precluded by law or contract from furnishing such
information to the Purchaser and the Purchaser is not precluded from furnishing
the same to any subsequent or prospective purchaser of such Mortgage. The
Seller
and the Originator shall hold the Purchaser harmless from any and all damages,
losses, costs and expenses (including attorney’s fees) arising from disclosure
of credit information in connection with the Purchaser’s secondary marketing
operations and the purchase and sale of mortgages or Servicing Rights
thereto;
(ss) Leaseholds.
Except
with respect to Mortgage Loans secured by property located in the state of
Hawaii, none of the Mortgage Loans are secured by mortgaged properties that
are
located on leaseholds. With respect to each Mortgage Loan secured by property
located on leaseholds: (1) the lessor under the lease holds a fee simple
interest in the land; (2) the terms of such lease expressly permit the
mortgaging of the leasehold estate, the assignment of the lease without the
lessor’s consent and the acquisition by the holder of the Mortgage of the rights
of the lessee upon foreclosure or assignment in lieu of foreclosure or provide
the holder of the Mortgage with substantially similar protections; (3) the
terms of such lease do not (a) allow the termination thereof upon the
lessee’s default without the holder of the Mortgage being entitled to receive
written notice of, and opportunity to cure, such default, (b) allow the
termination of the lease in the event of damage or destruction as long as the
Mortgage is in existence, (c) prohibit the holder of the Mortgage from
being insured (or receiving proceeds of insurance) under the hazard insurance
policy or policies relating to the Mortgaged Property or (d) permit any
increase in rent other than pre-established increases set forth in the lease;
(4) the original term of such lease is not less than 15 years; (5) the
term of such lease does not terminate earlier than ten years after the maturity
date of the Mortgage Note; (6) the Mortgaged Property is located in a
jurisdiction in which the use of leasehold estates in transferring ownership
in
residential properties is a widely accepted practice; (7) the lease is in
full
force and effect, unmodified and not supplemented by any writing or otherwise;
(8) the mortgagor is not in default under any of the terms thereof and there
are
no circumstances which, with the passage of time or the giving of notice
or
both, would constitute an event of default thereunder; (9) the lessor under
the
lease is not in default under any of the terms or provisions thereof on the
part
of the lessor to be observed or performed; (10) the lease or a memorandum
thereof has been recorded and by its terms permits the leasehold estate to
be
mortgaged; and (11) such Mortgage Loan conforms to the Xxxxxx Mae Selling
Guide
in connection ground leases;
(tt) Prepayment
Penalty.
Each
Mortgage Loan is subject to a Prepayment Penalty as provided in the related
Mortgage Note unless otherwise indicated on the Mortgage Loan Schedule hereof.
For any Mortgage Loan originated prior to October 1, 2002 that is subject
to a
Prepayment Penalty, such prepayment penalty does not extend beyond five years
after the date of origination. For any Mortgage Loan originated on or following
October 1, 2002 that is subject to a Prepayment Penalty, such prepayment
penalty
does not extend beyond three years after the date of origination and no Mortgage
Loan has a Prepayment Penalty period in excess of five years; Each Prepayment
Penalty is permissible and enforceable in accordance with its terms upon
the
Mortgagor's full and voluntary principal prepayment under applicable law,
except
to the extent that: (1) the enforceability thereof may be limited by bankruptcy,
insolvency, moratorium, receivership and other similar laws relating to
creditors' rights; (2) the collectability thereof may be limited due to
acceleration in connection with a foreclosure or other involuntary prepayment;
or (3) subsequent changes in applicable law may limit or prohibit enforceability
thereof under applicable law. With
respect to any Mortgage Loan that contains a provision permitting imposition
of
a premium upon a prepayment prior to maturity: (i) prior to the loan’s
origination, the Mortgagor agreed to such premium in exchange for a monetary
benefit, including but not limited to a rate or fee reduction, (ii) prior
to the
loan’s origination, the Mortgagor was offered the option of obtaining a Mortgage
Loan that did not require payment of such a premium, (iii) the prepayment
premium is disclosed to the Mortgagor in the loan documents pursuant to
applicable state and federal law, and (iv) notwithstanding any state or federal
law to the contrary, the Company shall not impose such prepayment premium
in any
instance when the mortgage debt is accelerated as the result of the Mortgagor’s
default in making the loan payments;
(uu) Predatory
Lending Regulations.
No
Mortgage Loan is (a) subject to, covered by or in violation of the Home
Ownership and Equity Protection Act of 1994 (“HOEPA”), (b) classified as a “high
cost,” “covered,” “high risk home”, “high-rate, high-fee,” “threshold,” or
“predatory” loan under HOEPA or any other applicable state, federal or local
law, including any predatory or abusive lending laws (or a similarly classified
loan using different terminology under a law imposing heightened scrutiny
or
additional legal liability for a residential mortgage loan having high interest
rates, points and/or fees) (c) a High Cost Loan or Covered Loan, as applicable
(as such terms are defined in the current Standard & Poor’s LEVELS® Glossary
Revised, Appendix E) or (d) in violation of any state law or ordinance
comparable to HOEPA;
(vv) Single-premium
Credit Life Insurance Policy.
In
connection with the origination of any Mortgage Loan, no proceeds from any
Mortgage Loan were used to finance a single-premium credit life insurance
policy. With respect to each Mortgage Loan, no Mortgagor obtained a prepaid
single-premium credit-life, credit-disability, credit unemployment or credit
property insurance policy in connection with the origination of the Mortgage
Loan;;
(ww) Tax
Service Contract; Flood Certification Contract.
Each
Mortgage Loan is covered by a paid in full, life of loan tax service contract
and a paid in full, life of loan flood certification contract and each of
these
contracts is assignable to the Purchaser;
(xx) Qualified
Mortgage.
The
Mortgage Loan is a “qualified mortgage” within the meaning of Section 860G(a)(3)
of the Code;
(yy) Regarding
the Mortgagor.
The
Mortgagor is one or more natural persons and/or trustees for an Illinois
land
trust or a trustee under a “living trust” and such “living trust” is in
compliance with Xxxxxx Xxx guidelines for such trusts;
(zz) Recordation.
Each
original Mortgage was recorded and all subsequent assignments of the original
Mortgage (other than the assignment to the Purchaser) have been recorded
in the
appropriate jurisdictions wherein such recordation is necessary to perfect
the
lien thereof as against creditors of the Seller, the Originator, or is in
the
process of being recorded. The Assignment of Mortgage is in recordable form
and
is acceptable for recording in the jurisdiction in which the Mortgaged Property
is located;
(aaa) FICO
Scores.
Each
Mortgagor has a non-zero FICO score;
(bbb) Compliance
with Anti-Money Laundering Laws.
The
Seller and the Servicer have complied with all applicable anti-money laundering
laws and regulations, including without limitation the USA Patriot Act of
2001
(collectively, the “Anti-Money
Laundering Laws”);
the
Seller or the Servicer has established an anti-money laundering compliance
program as required by the Anti-Money Laundering Laws, has conducted the
requisite due diligence in connection with the origination of each Mortgage
Loan
for purposes of the Anti-Money Laundering Laws, including with respect to
the
legitimacy of the applicable Mortgagor and the origin of the assets used
by the
said Mortgagor to purchase the property in question, and maintains, and will
maintain, sufficient information to identify the applicable Mortgagor for
purposes of the Anti-Money Laundering Laws. No Mortgage Loan is subject to
nullification pursuant to Executive Order 13224 (the “Executive Order”) or the
regulations promulgated by the Office of Foreign Assets Control of the United
States Department of the Treasury (the “OFAC Regulations”) or in violation of
the Executive Order or the OFAC Regulations, and no Mortgagor is subject
to the
provisions of such Executive Order or the OFAC Regulations nor listed as
a
“blocked person” for purposes of the OFAC Regulations;
(ccc) Interest
Calculation.
Interest on each Mortgage Loan is calculated on the basis of a 360-day year
consisting of twelve 30-day months;
(ddd) No
Balloon Loans.
No
Mortgage Loan is a balloon loan;
(eee) Credit
Reporting.
With
respect to each Mortgage Loan, the Servicer has fully and accurately furnished
complete information on the related borrower credit files to Equifax, Experian
and Trans Union Credit Information Company, in accordance with the Fair Credit
Reporting Act and its implementing regulations;
(fff) No
Mortgage Loan is a “High Cost Home Loan” as defined in the Georgia Fair Lending
Act, as amended (the “Georgia Act”) or New York Banking Law 6-1. No Mortgage
Loan secured by owner occupied real property or an owner occupied manufactured
home located in the State of Georgia was originated (or modified) on or after
October 1, 2002 through and including March 6, 2003;
(ggg) No
Mortgage Loan is a “High-Cost Home Loan,” as defined in Section 6-1 of the New
York State Banking Law;
(hhh) No
Mortgagor was encouraged or required to select a Mortgage Loan product offered
by the Mortgage Loan’s originator which is a higher cost product designed for
less creditworthy borrowers, unless at the time of the Mortgage Loan’s
origination, such Mortgagor did not qualify taking into account credit history
and debt to income ratios for a lower cost credit product then offered by
the
Mortgage Loan’s originator or any affiliate of the Mortgage Loan’s originator.
If, at the time of loan application, the Mortgagor may have qualified for
a for
a lower cost credit product then offered by any mortgage lending affiliate
of
the Mortgage Loan’s originator, the Mortgage Loan’s originator referred the
Mortgagor’s application to such affiliate for underwriting
consideration;
(iii) The
methodology used in underwriting the extension of credit for each Mortgage
Loan
employs objective mathematical principles which relate the Mortgagor’s income,
assets and liabilities to the proposed payment and such underwriting methodology
does not rely on the extent of the Mortgagor’s equity in the collateral as the
principal determining factor in approving such credit extension. Such
underwriting methodology confirmed that at the time of origination
(application/approval) the Mortgagor had a reasonable ability to make timely
payments on the Mortgage Loan;
(jjj) All
points fees and charges (including finance charges) and whether or not financed,
assessed, collected or to be collected in connection with the origination
and
servicing of each Loan have been disclosed in writing to the Mortgagor in
accordance with applicable state and federal law and regulation;
(kkk)
[Reserved];
(lll) The
Servicer will transmit full-file credit reporting data for each Mortgage
Loan
pursuant to Xxxxxx Mae Guide Announcement 95-19 and for each Mortgage Loan,
Servicer agrees it shall report one of the following statuses each month
as
follows: new origination, current, delinquent (30-, 60-, 90-days, etc.),
foreclosed, or charged-off;
(mmm) No
Mortgage Loan is a “High Cost Home Loan” as defined in the Arkansas Home Loan
Protection Act effective July 16, 2003 (Act 1340 or 2003);
(nnn) No
Mortgage Loan is a “High Cost Home Loan” as defined in the Kentucky high-cost
loan statute effective June 24, 2003 (Ky. Rev. Stat. Section
360.100);
(ooo) No
Mortgage Loan secured by property located in the State of Nevada is a “home
loan” as defined in the Nevada Assembly Xxxx No. 284;
(ppp) No
Mortgage Loan originated in the City of Oakland is subject to the City of
Oakland, California Ordinance 12361, as a home loan;
(qqq) No
Mortgage Loan is a subsection 10 mortgage under the Oklahoma Home Ownership
and
Equity Protection Act;
(rrr) No
Mortgage Loan is a “High-Risk Home Loan” as defined in the Illinois High-Risk
Home Loan Act effective January 1, 2004 (815 Ill. Comp. Stat. 137/1 et
seq.);
(sss) No
Mortgage Loan is a “High-Cost Home Loan” as defined in the New Mexico Home Loan
Protection Act effective January 1, 2004 (N.M. Stat. Xxx. §§ 58-21A-1 et
seq.);
(ttt) No
Mortgage Loan is a “High-Cost Home Loan” under the New Jersey Home Ownership
Security Act of 2002 (the “NJ Act”); and each Mortgage Loan subject to the NJ
Act is considered under the NJ Act as, either, a (1) purchase money Home
Loan,
(2) purchase money Covered Loan, or (3) a rate/term refinance Home
Loan;
(uuu) No
Mortgage Loan originated in the city of Los Angeles, California on or after
the
effective date of the Los Angeles, California anti-predatory lending ordinance
is a “home loan” under such ordinance;
(vvv) No
Mortgage Loan that is secured by property located within the State of Maine
meets the definition of a (i) “high-rate, high-fee” mortgage loan under Article
VIII, Title 9-A of the Maine Consumer Credit Code No Mortgage Loan or (ii)
“High-Cost Home Loan” as defined under the Maine House Xxxx 383 X.X. 494,
effective as of September 13, 2003;
(www) No
Mortgagor agreed to submit to arbitration to resolve any dispute arising
out of
or relating in any way to the Mortgage Loan transaction;
(xxx) As
to any
Mortgage Loan which is not a MERS Mortgage Loan, the Assignment of Mortgage
is
in recordable form and is acceptable for recording under the laws of the
jurisdiction in which the Mortgaged Property is located;
(yyy) With
respect to each MERS Mortgage Loan, a MIN has been assigned by MERS and such
MIN
is accurately provided on the related Mortgage Loan Schedule. The related
assignment of Mortgage to MERS has been duly and properly recorded;
(zzz) With
respect to each MERS Mortgage Loan, neither the Seller nor the Servicer has
received any notice of liens or legal actions with respect to such Mortgage
Loan
and no such notices have been electronically posted by MERS;
(aaaa) Each
Loan
is eligible for sale in the secondary mortgage market or for securitization
without unreasonable credit enhancement; and
(bbbb) With
respect to each Mortgage Loan which is a Second Lien, (i) the related first
lien
does not provide for negative amortization, and (ii) either no consent for
the
Mortgage Loan is required by the holder of the first lien or such consent
has
been obtained and is contained in the Mortgage File;
(cccc) With
respect to any Mortgage Loan for which a mortgage loan application was submitted
by the Mortgagor after April 1, 2004, no such Mortgage Loan secured by Mortgaged
Property in the State of Illinois which has a Mortgage Interest Rate in excess
of 8.0% per annum has lender-imposed fees (or other charges) in excess of
3.0%
of the original principal balance of the Mortgage Loan;
(dddd) The
Mortgagor has not made or caused to be made any payment in the nature of
an
‘average’ or ‘yield spread premium’ to a mortgage broker or a like Person which
has not been fully disclosed to the Mortgagor;
(eeee) No
Mortgage Loan is a “High-Cost Home Mortgage Loan” as defined in the
Massachusetts Predatory Home Loan Practices Act, effective November 6, 2004
(Mass. Xxx. Laws Ch. 183C);
(ffff) No
predatory or deceptive lending practices, including but not limited to, the
extension of credit to the applicable Mortgagor without regard for said
Mortgagor's ability to repay the Mortgage Loan and the extension of credit
to
said Mortgagor which has no apparent benefit to said Mortgagor, were employed
by
the originator of the Mortgage Loan in connection with the origination of
the
Mortgage Loan;
(gggg) All
points and fees related to each Mortgage Loan were disclosed in writing to
the
Mortgagor in accordance with applicable state and federal law and regulation.
Other than with respect to each Points and Fees Excess Loan, as identified
on
the related Points and Fees Schedule, no Mortgagor was charged Points and
Fees
in
an
amount greater than (a) $1,000 or (b) 5% of the principal amount of such
Mortgage Loan, whichever is greater;
(hhhh) No
Mortgage Loan is secured by property considered to be manufactured
housing;
(iiii) The
methodology used in underwriting the extension of credit for each Mortgage
Loan
did not rely on the extent of the Mortgagor’s equity in the collateral as the
principal determining factor in approving such extension of credit. The
methodology employed objective criteria that related such facts as, without
limitation, the Mortgagor’s credit history, income, assets or liabilities, to
the proposed mortgage payment and, based on such methodology, the Seller
made a
reasonable determination that at the time of origination the Mortgagor had
the
ability to make timely payments on the Mortgage Loan;
(jjjj) The
information set forth in the Points and Fees Schedule is complete, true and
correct;
(kkkk) With
respect to each Mortgage Loan which is indicated by the Seller to be a Second
Lien Mortgage Loan (as reflected on the Mortgage Loan Schedule) (i) the First
Lien is in full force and effect, (ii) there is no default, breach, violation
or
event of acceleration existing under such First Lien mortgage or the related
mortgage note, (iii) no event which, with the passage of time or with notice
and
the expiration of any grace or cure period, would constitute a default, breach,
violation or event of acceleration thereunder, and either (A) the First Lien
mortgage contains a provision which allows or (B) applicable law requires,
the
mortgagee under the Second Lien Mortgage Loan to receive notice of, and affords
such mortgagee an opportunity to cure any default by payment in full or
otherwise under the First Lien mortgage, (iv) either no consent for the Mortgage
Loan is required by the holder of the First Lien or such consent has been
obtained and is contained in the Mortgage File, and (v) such Second Lien
Mortgage Loan is secured by a one- to four-family residence that was (or
would
be) the principal residence of the Mortgagor upon the origination of the
Second
Lien Mortgage Loan;
EXHIBIT
E
REQUEST
FOR RELEASE
OF
DOCUMENTS
To: U.S.
Bank
National Association
0000
Xxxxxx Xxxxxx, Xxxxx 000
XX-XX-XXXX
Xx.
Xxxx,
XX 00000
Attn:
Document Collateral Services/ MASTR 2006-NC3
Deutsche
Bank National Trust Company
0000
X. Xx. Xxxxxx Xxxxx
Xxxxx
Xxx, Xxxxxxxxxx 00000
Attn:
Mortgage Custody—UB067C
|
Re:
|
Pooling
and Servicing Agreement, dated as of December 1, 2006, among Mortgage
Asset Securitization Transactions, Inc., Barclays Capital Real Estate
Inc.
d/b/a HomEq Servicing, National Association, Xxxxx Fargo Bank, N.A.
and
U.S. Bank National Association, Mortgage Pass-Through
Certificates, Series 2006-NC3
|
In
connection with the administration of the Mortgage Loans held by you as
Custodian pursuant to the above-captioned Pooling and Servicing Agreement,
we
request the release, and hereby acknowledge receipt of the [Custodian’s]
[Trustee’s] Mortgage File Or the Mortgage Loan described below, for the reason
indicated.
In
addition, all amounts have been received in connection with such payment,
repurchase or liquidation and have been credited to the related Collection
Account.
Mortgage
Loan Number:
Mortgagor
Name. Address & Zip Code:
Reason
for Requesting Documents
(check
one):
|
1.
|
Mortgage
Paid in Full ____
|
|
2.
|
Foreclosure
____
|
|
3.
|
Substitution
____
|
|
4.
|
Other
Liquidation (Repurchases, etc.) ____
|
|
5.
|
Nonliquidation Reason:
______________________________________
|
Address
to which Custodian should deliver
the
[Custodian's] [Trustee’s] Mortgage File:
|
By:
|
||
|
(authorized
signer)
|
||
|
Issuer:
|
||
|
Address:
|
||
|
Date:
|
||
[Custodian]
[Trustee]
[Deutsche
Bank National Trust Company]
[U.S.
Bank National Association]
|
Please
acknowledge the execution of the above request by your signature
and date
below:
|
||||
|
Signature
|
Date
|
|||
|
Documents
returned to [Custodian]
[Trustee] :
|
||||
|
[Custodian]
[Trustee]
|
|
|||
EXHIBIT
F-1
FORM
OF
TRANSFEROR REPRESENTATION LETTER
[Date]
Xxxxx
Fargo Bank, N.A.
Xxxxx
Xxxxxx xxx Xxxxxxxxx Xxxxxx
Xxxxxxxxxxx,
Xxxxxxxxx 00000
Attn:
Transfer Unit / MABS 2006-NC3
|
Re:
|
MASTR
Asset Backed Securities Trust 2006-NC3, Mortgage Pass-Through
Certificates, Class ___, representing
a ___% Class ___ Percentage
Interest
|
Ladies
and Gentlemen:
In
connection with the transfer by ________________ (the “Transferor”) to
________________ (the “Transferee”) of the captioned Mortgage Pass-Through
certificates (the “Certificates”), the Transferor hereby certifies as
follows:
Neither
the Transferor nor anyone acting on its behalf has (a) offered, pledged, sold,
disposed of or otherwise transferred any Certificate, any interest in any
Certificate or any other similar security to any person in any manner, (b)
has
solicited any offer to buy or to accept a pledge, disposition or other transfer
of any Certificate, any interest in any Certificate or any other similar
security from any person in any manner, (c) has otherwise approached or
negotiated with respect to any Certificate, any interest in any Certificate
or
any other similar security with any person in any manner, (d) has made any
general solicitation by means of general advertising or in any other manner,
(e)
has taken any other action, that (in the case of each of subclauses (a) through
(e) above) would constitute a distribution of the Certificates under the
Securities Act of 1933, as amended (the “1933 Act”), or would render the
disposition of any Certificate a violation of Section 5 of the 1933 Act or
any
state securities law or would require registration or qualification pursuant
thereto. The Transferor will not act, nor has it authorized or will it authorize
any person to act, in any manner set forth in the foregoing sentence with
respect to any Certificate. The Transferor will not sell or otherwise transfer
any of the Certificates, except in compliance with the provisions of that
certain Pooling and Servicing Agreement, dated as of December 1, 2006, among
Mortgage Asset Securitization Transactions, Inc. as Depositor, Barclays Capital
Real Estate Inc. d/b/a HomEq Servicing as Servicer, Xxxxx Fargo Bank, N.A.
as
Master Servicer and Trust Administrator and U.S. Bank National Association
as
Trustee (the “Pooling and Servicing Agreement”), pursuant to which Pooling and
Servicing Agreement the Certificates were issued.
Capitalized
terms used but not defined herein shall have the meanings assigned thereto
in
the Pooling and Servicing Agreement.
|
Very
truly yours,
|
|
|
[Transferor]
|
|
|
By:
|
|
|
Name:
|
|
|
Title:
|
|
FORM
OF
TRANSFEREE REPRESENTATION LETTER
[Date]
Xxxxx
Fargo Bank, N.A.
Xxxxx
Xxxxxx xxx Xxxxxxxxx Xxxxxx
Xxxxxxxxxxx,
Xxxxxxxxx 00000
Attn:
Transfer Unit / MABS 2006-NC3
UBS
AG
000
Xxxxxxxxx Xxxxxx
Xxxxxx
XX0X 0XX
|
Re:
|
MASTR
Asset Backed Securities Trust 2006-NC3, Mortgage Pass-Through
Certificates, Series 2006-NC3, Class ___, representing a ___% Class
___
Percentage Interest
|
Ladies
and Gentlemen:
In
connection with the purchase from ______________________ (the “Transferor”) on
the date hereof of the captioned trust certificates (the “Certificates”),
_______________ (the “Transferee”) hereby certifies as follows:
1. The
Transferee is a “qualified institutional buyer” as that term is defined in Rule
144A (“Rule 144A”) under the Securities Act of 1933 (the “1933 Act”) and has
completed either of the forms of certification to that effect attached hereto
as
Annex 1 or Annex 2. The Transferee is aware that the sale to it is being made
in
reliance on Rule 144A. The Transferee is acquiring the Certificates for its
own
account or for the account of a qualified institutional buyer, and understands
that such Certificate may be resold, pledged or transferred only (i) to a person
reasonably believed to be a qualified institutional buyer that purchases for
its
own account or for the account of a qualified institutional buyer to whom notice
is given that the resale, pledge or transfer is being made in reliance on Rule
144A, or (ii) pursuant to another exemption from registration under the 1933
Act.
2. The
Transferee has been furnished with all information regarding (a) the
Certificates and distributions thereon, (b) the nature, performance and
servicing of the Mortgage Loans, (c) the Pooling and Servicing Agreement
referred to below, and (d) any credit enhancement mechanism associated with
the
Certificates, that it has requested.
3.
With
respect to a transfer of the Class CE Certificates, the Transferee agrees to
provide to the Trust Administrator, the Swap Provider and the Interest Rate
Cap
Provider the appropriate tax certification form (i.e., IRS Form W-9 or IRS
Form
X-0XXX, X-0XXX, X-0XXX or W-8ECI, as applicable (or any successor form
thereto)), and agrees to update such forms (i) upon expiration of any such
form,
(ii) as required under then applicable U.S. Treasury regulations and (iii)
promptly upon learning that any IRS Form W-9 or IRS Form X-0XXX, X-0XXX, X-0XXX
or W-8ECI, as applicable (or any successor form thereto), has become obsolete
or
incorrect. In addition, if the transfer contemplated hereby causes the
Supplemental Interest Trust or the Cap Account to be beneficially owned by
two
or more persons for federal income tax purposes, or continue to be so treated,
(a) each Transferee shall comply with the foregoing conditions, (b) the proposed
majority Holder of the Class CE Certificates (or each Holder, if there is or
would be no majority Holder) (A) shall provide, or cause to be provided, on
behalf of the Supplemental Interest Trust and the Cap Account, if applicable,
the appropriate tax certification form that would be required from the
Supplemental Interest Trust or the Cap Account, as applicable, to eliminate
any
withholding or deduction for taxes from amounts payable by the Swap Provider
or
the Interest Rate Cap Provider, pursuant to the Interest Rate Swap Agreement
or
the Interest Rate Cap Agreement, to the Trust Administrator, the Swap Provider
and the Interest Rate Cap Provider on behalf of the Supplemental Interest Trust
or the Cap Account (i.e., IRS Form W-9 or IRS Form W-8BEN, W-8IMY or W-8ECI,
as
applicable (or any successor form thereto) as a condition to such transfer,
together with any applicable attachments) and (B) each Transferee agrees to
update such form (x) upon expiration of any such form, (y) as required under
then applicable U.S. Treasury regulations and (z) promptly upon learning that
such form has become obsolete or incorrect.
The
Transferee hereby authorizes the Trust Administrator to provide any such tax
certification form to the Swap Provider and the Interest Rate Cap Provider,
upon
its request, solely to the extent the Swap Provider or the Interest Rate Cap
Provider has not received such IRS Form directly from the Holder of the Class
CE
Certificates. Each Holder of a Class CE Certificate by its purchase of such
Certificate is deemed to consent to any such IRS Form being so forwarded. Upon
the request of the Swap Provider or the Interest Rate Cap Provider, the Trust
Administrator shall be required to forward any tax certification received by
it
to the Swap Provider or the Interest Rate Cap Provider at the last known address
provided to it, and, subject to Section 8.01 of the Pooling and Servicing
Agreement, shall not be liable for the receipt of such tax certification by
the
Swap Provider or the Interest Rate Cap Provider, nor any action taken or not
taken by the Swap Provider or the Interest Rate Cap Provider with respect to
such tax certification. Any purported sales or transfers of the Class CE
Certificate to a Transferee which does not comply with the requirements of
the
preceding paragraph shall be deemed null and void under the Pooling and
Servicing Agreement. The Trust Administrator shall have no duty to take any
action to correct any misstatement or omission in any tax certification provided
to it by the Holder of the Class CE Certificates and forwarded to the Swap
Provider or the Interest Rate Cap Provider.
All
capitalized terms used but not otherwise defined herein have the respective
meanings assigned thereto in the Pooling and Servicing Agreement, dated as
of
December 1, 2006, among Mortgage Asset Securitization Transactions, Inc. as
Depositor, Barclays Capital Real Estate Inc. d/b/a HomEq Servicing as Servicer,
Xxxxx Fargo Bank, N.A. as Master Servicer, Trust Administrator and Custodian
and
U.S. Bank National Association as Trustee, pursuant to which the Certificates
were issued.
|
[TRANSFEREE]
|
|
|
By:
|
|
|
Name:
|
|
|
Title:
|
|
ANNEX
1 TO EXHIBIT F-1
QUALIFIED
INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
[FOR
TRANSFEREES OTHER THAN REGISTERED INVESTMENT COMPANIES]
The
undersigned hereby certifies as follows to [name of Transferor] (the
“Transferor”) and Xxxxx Fargo Bank, N.A., as Trust Administrator, with respect
to the Mortgage Pass-Through certificates (the “Certificates”) described in the
Transferee Certificate to which this certification relates and to which this
certification is an Annex:
1.
As
indicated below, the undersigned is the President, Chief Financial Officer,
Senior Vice President or other executive officer of the entity purchasing the
Certificates (the “Transferee”).
2.
In
connection with purchases by the Transferee, the Transferee is a “qualified
institutional buyer” as that term is defined in Rule 144A under the Securities
Act of 1933 (“Rule 144A”) because (i) the Transferee owned and/or invested on a
discretionary basis $______________________1
in
securities (except for the excluded securities referred to below) as of the
end
of the Transferee's most recent fiscal year (such amount being calculated in
accordance with Rule 144A) and (ii) the Transferee satisfies the criteria in
the
category marked below.
___
CORPORATION, ETC. The Transferee is a corporation (other than a bank, savings
and loan association or similar institution), Massachusetts or similar business
trust, partnership, or any organization described in Section 501(c)(3) of the
Internal Revenue Code of 1986.
___
BANK.
The Transferee (a) is a national bank or banking institution organized under
the
laws of any State, territory or the District of Columbia, the business of which
is substantially confined to banking and is supervised by the State or
territorial banking commission or similar official or is a foreign bank or
equivalent institution, and (b) has an audited net worth of at least $25,000,000
as demonstrated in its latest annual financial statements, a copy of which
is
attached hereto.
___
SAVINGS AND LOAN. The Transferee (a) is a savings and loan association, building
and loan association, cooperative bank, homestead association or similar
institution, which is supervised and examined by a State or Federal authority
having supervision over any such institutions or is a foreign savings and loan
association or equivalent institution and (b) has an audited net worth of at
least
___
BROKER-DEALER. The Transferee is a dealer registered pursuant to Section 15
of
the Securities Exchange Act of 1934.
___
INSURANCE COMPANY. The Transferee is an insurance company whose primary and
predominant business activity is the writing of insurance or the reinsuring
of
risks underwritten by insurance companies and which is subject to supervision
by
the insurance commissioner or a similar official or agency of a State, territory
or the District of Columbia.
___
STATE
OR LOCAL PLAN. The Transferee is a plan established and maintained by a State,
its political subdivisions, or any agency or instrumentality of the State or
its
political subdivisions, for the benefit of its employees.
___
ERISA
PLAN. The Transferee is an employee benefit plan within the meaning of Title
I
of the Employee Retirement Income Security Act of 1974, as amended.
___
INVESTMENT ADVISOR. The Transferee is an investment advisor registered under
the
Investment Advisers Act of 1940.
3.
The
term “SECURITIES” as used herein DOES NOT INCLUDE (i) securities of issuers that
are affiliated with the Transferee, (ii) securities that are part of an unsold
allotment to or subscription by the Transferee, if the Transferee is a dealer,
(iii) securities issued or guaranteed by the U.S. or any instrumentality
thereof, (iv) bank deposit notes and certificates of deposit, (v) loan
participations, (vi) repurchase agreements, (vii) securities owned but subject
to a repurchase agreement and (viii) currency, interest rate and commodity
swaps.
4.
For
purposes of determining the aggregate amount of securities owned and/or invested
on a discretionary basis by the Transferee, the Transferee used the cost of
such
securities to the Transferee and did not include any of the securities referred
to in the preceding paragraph. Further, in determining such aggregate amount,
the Transferee may have included securities owned by subsidiaries of the
Transferee, but only if such subsidiaries are consolidated with the Transferee
in its financial statements prepared in accordance with generally accepted
accounting principles and if the investments of such subsidiaries are managed
under the Transferee's direction. However, such securities were not included
if
the Transferee is a majority-owned, consolidated subsidiary of another
enterprise and the Transferee is not itself a reporting company under the
Securities Exchange Act of 1934.
5.
The
Transferee acknowledges that it is familiar with Rule 144A and understands
that
the Transferor and other parties related to the Certificates are relying and
will continue to rely on the statements made herein because one or more sales
to
the Transferee may be in reliance on Rule 144A.
|
___
|
___
|
Will
the Transferee be purchasing the Certificates
|
|
Yes
|
No
|
only
for the Transferee's own account?
|
6.
If the
answer to the foregoing question is “no”, the Transferee agrees that, in
connection with any purchase of securities sold to the Transferee for the
account of a third party (including any separate account) in reliance on Rule
144A, the Transferee will only purchase for the account of a third party that
at
the time is a “qualified institutional buyer” within the meaning of Rule 144A.
In addition, the Transferee agrees that the Transferee will not purchase
securities for a third party unless the Transferee has obtained a current
representation letter from such third party or taken other appropriate steps
contemplated by Rule 144A to conclude that such third party independently meets
the definition of “qualified institutional buyer” set forth in Rule
144A.
7.
The
Transferee will notify each of the parties to which this certification is made
of any changes in the information and conclusions herein. Until such notice
is
given, the Transferee's purchase of the Certificates will constitute a
reaffirmation of this certification as of the date of such purchase. In
addition, if the Transferee is a bank or savings and loan as provided above,
the
Transferee agrees that it will furnish to such parties updated annual financial
statements promptly after they become available.
Dated:
___________
|
Print
Name of Transferee
|
|
|
By:
|
|
|
Name:
|
|
|
Title:
|
|
1 Transferee
must own and/or invest on a discretionary basis at least $100,000,000 in
securities unless Transferee is a dealer, and, in that case, Transferee
must own
and/or invest on a discretionary basis at least $10,000,000 in securities.
$25,000,000 as demonstrated in its latest annual financial statements,
A COPY OF
WHICH IS ATTACHED HERETO.
ANNEX
2 TO EXHIBIT F-1
QUALIFIED
INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
[FOR
TRANSFEREES THAT ARE REGISTERED INVESTMENT COMPANIES]
The
undersigned hereby certifies as follows to [name of Transferor] (the
“Transferor”) and Xxxxx Fargo Bank, N.A., as Trust Administrator, with respect
to the Mortgage Pass-Through certificates (the “Certificates”) described in the
Transferee Certificate to which this certification relates and to which this
certification is an Annex:
1.
As
indicated below, the undersigned is the President, Chief Financial Officer
or
Senior Vice President of the entity purchasing the Certificates (the
“Transferee”) or, if the Transferee is a “qualified institutional buyer” as that
term is defined in Rule 144A under the Securities Act of 1933 (“Rule 144A”)
because the Transferee is part of a Family of Investment Companies (as defined
below), is such an officer of the investment adviser (the
“Adviser”).
2.
In
connection with purchases by the Transferee, the Transferee is a “qualified
institutional buyer” as defined in Rule 144A because (i) the Transferee is an
investment company registered under the Investment Company Act of 1940, and
(ii)
as marked below, the Transferee alone, or the Transferee's Family of Investment
Companies, owned at least $100,000,000 in securities (other than the excluded
securities referred to below) as of the end of the Transferee's most recent
fiscal year. For purposes of determining the amount of securities owned by
the
Transferee or the Transferee's Family of Investment Companies, the cost of
such
securities was used.
|
____
|
The
Transferee owned $___________________ in securities (other than the
excluded securities referred to below) as of the end of the Transferee's
most recent fiscal year (such amount being calculated in accordance
with
Rule 144A).
|
|
____
|
The
Transferee is part of a Family of Investment Companies which owned
in the
aggregate $______________ in securities (other than the excluded
securities referred to below) as of the end of the Transferee's most
recent fiscal year (such amount being calculated in accordance with
Rule
144A).
|
3.
The
term “FAMILY OF INVESTMENT COMPANIES” as used herein means two or more
registered investment companies (or series thereof) that have the same
investment adviser or investment advisers that are affiliated (by virtue of
being majority owned subsidiaries of the same parent or because one investment
adviser is a majority owned subsidiary of the other).
4.
The
term “SECURITIES” as used herein does not include (i) securities of issuers that
are affiliated with the Transferee or are part of the Transferee's Family of
Investment Companies, (ii) securities issued or guaranteed by the U.S. or any
instrumentality thereof, (iii) bank deposit notes and certificates of deposit,
(iv) loan participations, (v) repurchase agreements, (vi) securities owned
but
subject to a repurchase agreement and (vii) currency, interest rate and
commodity swaps.
5.
The
Transferee is familiar with Rule 144A and understands that the parties to which
this certification is being made are relying and will continue to rely on the
statements made herein because one or more sales to the Transferee will be
in
reliance on Rule 144A. In addition, the Transferee will only purchase for the
Transferee's own account.
6.
The
undersigned will notify the parties to which this certification is made of
any
changes in the information and conclusions herein. Until such notice, the
Transferee's purchase of the Certificates will constitute a reaffirmation of
this certification by the undersigned as of the date of such
purchase.
Dated:
__________
|
Print
Name of Transferee or Advisor
|
|
|
Name
|
|
|
Title
|
|
|
IF
AN ADVISER:
|
|
|
Print
Name of Buyer
|
|
FORM
OF TRANSFEREE REPRESENTATION LETTER
The
undersigned hereby certifies on behalf of the purchaser named below (the
“Purchaser”) as follows:
1.
I am
an executive officer of the Purchaser.
2.
The
Purchaser is a “qualified institutional buyer”, as defined in Rule 144A, (“Rule
144A”) under the Securities Act of 1933, as amended.
3.
As of
the date specified below (which is not earlier than the last day of the
Purchaser's most recent fiscal year), the amount of “securities”, computed for
purposes of Rule 144A, owned and invested on a discretionary basis by the
Purchaser was in excess of $100,000,000.
|
Name
of Purchaser
__________________________
|
|
|
By:
|
|
|
Name:
|
|
|
Title:
|
|
Date
of
this certificate: ______________
Date
of
information provided in paragraph 3: ______________
EXHIBIT
F-2
FORM
OF
TRANSFER AFFIDAVIT AND AGREEMENT
|
STATE
OF NEW YORK
|
)
|
|
|
)
|
ss.:
|
|
|
COUNTY
OF NEW YORK
|
)
|
1. The
undersigned is an officer of the proposed Transferee of an Ownership Interest
in
a Class [R] [R-X] Certificate (the “Certificate”) issued pursuant to the Pooling
and Servicing Agreement, (the “Agreement”), relating to the above-referenced
Certificates, dated as of December 1, 2006 (the “Agreement”),
among
Mortgage Asset Securitization Transactions, Inc., as depositor (the
“Depositor”),
Barclays Capital Real Estate Inc. d/b/a HomEq Servicing as servicer (the
“Servicer”), Xxxxx Fargo Bank, N.A., as master servicer (the “Master
Servicer”)
and
trust administrator (the “Trust Administrator”), Deutsche Bank National Trust
Company as custodian (the “Custodian”)
and
U.S. Bank National Association, as trustee (the “Trustee”).
Capitalized terms used, but not defined herein or in Exhibit 1 hereto, shall
have the meanings ascribed to such terms in the Agreement. The Transferee has
authorized the undersigned to make this affidavit on behalf of the Transferee
for the benefit of the Depositor and the Trustee.
2. The
Transferee is, as of the date hereof, and will be, as of the date of the
Transfer, a Permitted Transferee. The Transferee is acquiring its Ownership
Interest in the Certificate for its own account. The Transferee has no knowledge
that any such affidavit is false.
3. The
Transferee has been advised of, and understands that (i) a tax will be
imposed on Transfers of the Certificate to Persons that are not Permitted
Transferees; (ii) such tax will be imposed on the transferor, or, if such
Transfer is through an agent (which includes a broker, nominee or middleman)
for
a Person that is not a Permitted Transferee, on the agent; and (iii) the
Person otherwise liable for the tax shall be relieved of liability for the
tax
if the subsequent Transferee furnished to such Person an affidavit that such
subsequent Transferee is a Permitted Transferee and, at the time of Transfer,
such Person does not have actual knowledge that the affidavit is
false.
4. The
Transferee has been advised of, and understands that a tax will be imposed
on a
“pass-through entity” holding the Certificate if at any time during the taxable
year of the pass-through entity a Person that is not a Permitted Transferee
is
the record holder of an interest in such entity. The Transferee understands
that
such tax will not be imposed for any period with respect to which the record
holder furnishes to the pass-through entity an affidavit that such record holder
is a Permitted Transferee and the pass-through entity does not have actual
knowledge that such affidavit is false. (For this purpose, a “pass-through
entity” includes a regulated investment company, a real estate investment trust
or common trust fund, a partnership, trust or estate, and certain cooperatives
and, except as may be provided in Treasury Regulations, persons holding
interests in pass-through entities as a nominee for another
Person.)
5. The
Transferee has reviewed the provisions of Section 5.02 (c) of the Agreement
and understands the legal consequences of the acquisition of an Ownership
Interest in the Certificate including, without limitation, the restrictions
on
subsequent Transfers and the provisions regarding voiding the Transfer and
mandatory sales. The Transferee expressly agrees to be bound by and to abide
by
the provisions of Section 5.02 (c) of the Agreement and the restrictions
noted on the face of the Certificate. The Transferee understands and agrees
that
any breach of any of the representations included herein shall render the
Transfer to the Transferee contemplated hereby null and void.
6. The
Transferee agrees to require a Transfer Affidavit from any Person to whom the
Transferee attempts to Transfer its Ownership Interest in the Certificate,
and
in connection with any Transfer by a Person for whom the Transferee is acting
as
nominee, trustee or agent, and the Transferee will not Transfer its Ownership
Interest or cause any Ownership Interest to be Transferred to any Person that
the Transferee knows is not a Permitted Transferee. In connection with any
such
Transfer by the Transferee, the Transferee agrees to deliver to the Trustee
a
certificate substantially in the form set forth as Exhibit L to the
Agreement (a “Transferor
Certificate”)
to the
effect that such Transferee has no actual knowledge that the Person to which
the
Transfer is to be made is not a Permitted Transferee.
7. The
Transferee has historically paid its debts as they have come due, intends to
pay
its debts as they come due in the future, and understands that the taxes payable
with respect to the Certificate may exceed the cash flow with respect thereto
in
some or all periods and intends to pay such taxes as they become due. The
Transferee does not have the intention to impede the assessment or collection
of
any tax legally required to be paid with respect to the
Certificate.
8. The
Transferee’s taxpayer identification number is [_____________].
9. The
Transferee is a U.S. Person as defined in Code
Section 7701(a)(30).
10. The
Transferee is aware that the Certificate may be a “noneconomic residual
interest” within the meaning of proposed Treasury regulations promulgated
pursuant to the Code and that the transferor of a noneconomic residual interest
will remain liable for any taxes due with respect to the income on such residual
interest, unless no significant purpose of the transfer was to impede the
assessment or collection of tax.
11. The
Transferee will not cause income from the Certificate to be attributable to
a
foreign permanent establishment or fixed base, within the meaning of an
applicable income tax treaty, of the Transferee or any other U.S.
person.
12. Check
one
of the following:
o The
present
value of the anticipated tax liabilities associated with holding the
Certificate, as applicable, does not exceed the sum of:
|
(i)
|
the
present value of any consideration given to the Transferee to acquire
such
Certificate;
|
|
(ii)
|
the
present value of the expected future distributions on such Certificate;
and
|
|
(iii)
|
the
present value of the anticipated tax savings associated with holding
such
Certificate as the related REMIC generates
losses.
|
For
purposes of this calculation, (i) the Transferee is assumed to pay tax at the
highest rate currently specified in Section 11(b) of the Code (but the tax
rate
in Section 55(b)(1)(B) of the Code may be used in lieu of the highest rate
specified in Section 11(b) of the Code if the Transferee has been subject to
the
alternative minimum tax under Section 55 of the Code in the preceding two years
and will compute its taxable income in the current taxable year using the
alternative minimum tax rate) and (ii) present values are computed using a
discount rate equal to the short-term Federal rate prescribed by Section 1274(d)
of the Code for the month of the transfer and the compounding period used by
the
Transferee.
o The
transfer of the Certificate
complies with U.S. Treasury Regulations Sections 1.860E-1(c)(5) and (6) and,
accordingly,
|
(i)
|
the
Transferee is an “eligible corporation,” as defined in U.S. Treasury
Regulations Section 1.860E-1(c)(6)(i), as to which income from the
Certificate will only be taxed in the United
States;
|
|
(ii)
|
at
the time of the transfer, and at the close of the Transferee’s two fiscal
years preceding the year of the transfer, the Transferee had gross
assets
for financial reporting purposes (excluding any obligation of a person
related to the Transferee within the meaning of U.S. Treasury Regulations
Section 1.860E-1(c)(6)(ii)) in excess of $100 million and net assets
in
excess of $10 million;
|
|
(iii)
|
the
Transferee will transfer the Certificate only to another “eligible
corporation,” as defined in U.S. Treasury Regulations Section
1.860E-1(c)(6)(i), in a transaction that satisfies the requirements
of
Sections 1.860E-1(c)(4)(i), (ii) and (iii) and Section 1.860E-1(c)(5)
of
the U.S. Treasury Regulations;
and
|
|
(iv)
|
the
Transferee determined the consideration paid to it to acquire the
Certificate based on reasonable market assumptions (including, but
not
limited to, borrowing and investment rates, prepayment and loss
assumptions, expense and reinvestment assumptions, tax rates and
other
factors specific to the Transferee) that it has determined in good
faith.
|
o None
of the
above.
13. The
Transferee is not an employee benefit plan that is subject to Title I of ERISA
or a plan that is subject to Section 4975 of the Code or a plan subject to
any Federal, state or local law that is substantially similar to Title I of
ERISA or Section 4975 of the Code, and the Transferee is not acting on behalf
of
or investing plan assets of such a plan.
IN
WITNESS WHEREOF, the Owner has caused this instrument to be executed on its
behalf, pursuant to the authority of its Board of Directors, by its [Vice]
President, attested by its [Assistant] Secretary, this ____ day of __________,
20__.
|
[OWNER]
|
|
|
By:
|
|
|
Name:
|
|
|
Title:
|
[Vice]
President
|
ATTEST:
|
By:
|
|
|
Name:
|
|
|
Title:
|
[Assistant]
Secretary
|
Personally
appeared before me the above-named , known or proved to me to be the same person
who executed the foregoing instrument and to be a [Vice] President of the Owner,
and acknowledged to me that [he/she] executed the same as [his/her] free act
and
deed and the free act and deed of the Owner.
Subscribed
and sworn before me this ____ day of __________, 20___.
|
Notary
Public
|
|
|
County
of __________________
State
of ___________________
My
Commission expires:
|
FORM
OF TRANSFEROR AFFIDAVIT
|
STATE
OF NEW YORK
|
)
|
|
|
)
|
ss.:
|
|
|
COUNTY
OF NEW YORK
|
)
|
__________________________,
being duly sworn, deposes, represents and warrants as follows:
1.
I
am a
____________________ of ____________________________ (the “Owner”), a
corporation duly organized and existing under the laws of ______________, on
behalf of whom I make this affidavit.
2.
The
Owner
is not transferring the Residual Certificates (the “Residual Certificates”) to
impede the assessment or collection of any tax.
3.
The
Owner
has no actual knowledge that the Person that is the proposed transferee (the
“Purchaser”) of the Residual Certificates: (i) has insufficient assets to pay
any taxes owed by such proposed transferee as holder of the Residual
Certificates; (ii) may become insolvent or subject to a bankruptcy proceeding
for so long as the Residual Certificates remain outstanding; and (iii) is not
a
Permitted Transferee.
4.
The
Owner
understands that the Purchaser has delivered to the Trust Administrator a
transfer affidavit and agreement in the form attached to the Pooling and
Servicing Agreement as Exhibit F-2. The Owner does not know or believe that
any
representation contained therein is false.
5.
At
the
time of transfer, the Owner has conducted a reasonable investigation of the
financial condition of the Purchaser as contemplated by Treasury Regulations
Section 1.860E-1(c)(4)(i) and, as a result of that investigation, the Owner
has
determined that the Purchaser has historically paid its debts as they became
due
and has found no significant evidence to indicate that the Purchaser will not
continue to pay its debts as they become due in the future. The Owner
understands that the transfer of a Residual Certificate may not be respected
for
United States income tax purposes (and the Owner may continue to be liable
for
United States income taxes associated therewith) unless the Owner has conducted
such an investigation.
6.
Capitalized
terms not otherwise defined herein shall have the meanings ascribed to them
in
the Pooling and Servicing Agreement.
IN
WITNESS WHEREOF, the Owner has caused this instrument to be executed on its
behalf, pursuant to the authority of its Board of Directors, by its [Vice]
President, attested by its [Assistant] Secretary, this ____ day of ___________,
20__.
|
[OWNER]
|
|
|
By:
|
|
|
Name:
|
|
|
Title:
|
[Vice]
President
|
|
ATTEST:
|
|
|
By:
|
|
|
Name:
|
|
|
Title:
|
[Assistant]
Secretary
|
Personally
appeared before me the above-named , known or proved to me to be the same person
who executed the foregoing instrument and to be a [Vice] President of the Owner,
and acknowledged to me that [he/she] executed the same as [his/her] free act
and
deed and the free act and deed of the Owner.
Subscribed
and sworn before me this ____ day of __________, 20___.
|
Notary
Public
|
|
|
County
of __________________
State
of ___________________
My
Commission expires:
|
EXHIBIT
G
FORM
OF
CERTIFICATION WITH RESPECT TO ERISA AND THE CODE
_____________,
2006
Mortgage
Asset Securitization Transactions, Inc.
0000
Xxxxxx xx xxx Xxxxxxxx
Xxx
Xxxx,
Xxx Xxxx 00000
Xxxxx
Fargo Bank, N.A.
Xxxxx
Xxxxxx xxx Xxxxxxxxx Xxxxxx
Xxxxxxxxxxx,
Xxxxxxxxx 00000
Attn:
Transfer Unit / MABS 2006-NC3
U.S.
Bank
National Association
00
Xxxxxxxxxx Xxxxxx
XX-XX-XX0X
Xx.
Xxxx,
XX 00000
Attn:
Structured Finance/ MASTR 2006-NC3
|
Re:
|
MASTR
Asset Backed Securities Trust 2006-NC3, Mortgage
Pass-Through Certificates, Class
|
Dear
Sirs:
_______________________
(the “Transferee”) intends to acquire from _____________________ (the
“Transferor”) $____________ Initial Certificate Principal Balance of MASTR Asset
Backed Securities Trust 2006-NC3, Mortgage Pass-Through Certificates, Series
2006-NC3, Class [CE] [P] [R] [R-X] (the “Certificates”), issued pursuant to a
Pooling and Servicing Agreement (the “Pooling and Servicing Agreement”) dated as
of December 1, 2006, among Mortgage Asset Securitization Transactions, Inc.
as
depositor (the “Depositor”), Barclays Capital Real Estate Inc. d/b/a HomEq
Servicing as servicer (the “Servicer”), Xxxxx Fargo Bank, N.A. as master
servicer and trust administrator (the “Master Servicer”, the “Trust
Administrator” and the “Custodian”), Deutsche Bank National Trust Company as
custodian (the “Custodian”) and U.S. Bank National Association as trustee (the
“Trustee”). Capitalized terms used herein and not otherwise defined shall have
the meanings assigned thereto in the Pooling and Servicing Agreement. The
Transferee hereby certifies, represents and warrants to, and covenants with
the
Depositor, the Trust Administrator, the Trustee and the Master Servicer that:
The
Certificates (i) are not being acquired by, and will not be transferred to,
any
employee benefit plan within the meaning of section 3(3) of the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”), or other
retirement arrangement, including individual retirement accounts and annuities,
Xxxxx plans and bank collective investment funds and insurance company general
or separate accounts in which such plans, accounts or arrangements are invested,
that is subject to Section 406 of ERISA or Section 4975 of the Internal Revenue
Code of 1986 (the “Code”) (any of the foregoing, a “Plan”), (ii) are not being
acquired with “plan assets” of a Plan within the meaning of the Department of
Labor (“DOL”) regulation, 29 C.F.R. §
2510.3-101, and (iii) will not be transferred to any entity that is deemed
to be
investing in plan assets within the meaning of the DOL regulation at 29 C.F.R.
§
2510.3-101.
|
Very
truly yours,
|
|
|
By:
|
|
|
Name:
|
|
|
Title:
|
|
EXHIBIT
H
[Reserved]
EXHIBIT
I
FORM
OF
LOST NOTE AFFIDAVIT
Loan
#:
____________
BORROWER:
_____________
LOST
NOTE
AFFIDAVIT
I,
as
____________________ of ______________________, a _______________ corporation
am
authorized to make this Affidavit on behalf of _____________________ (the
“Seller”). In connection with the administration of the Mortgage Loans held by
____________________, a _________________ corporation as Seller on behalf of
Mortgage Asset Securitization Transactions, Inc. (the “Purchaser”),
_____________________ (the “Deponent”), being duly sworn, deposes and says
that:
1. The
Seller's address is:
|
2.
|
The
Seller previously delivered to the Purchaser a signed Initial
Certification with respect to such Mortgage and/or Assignment of
Mortgage;
|
3. Such
Mortgage Note and/or Assignment of Mortgage was assigned or sold to the
Purchaser by ________________________, a ____________ corporation pursuant
to the terms and provisions of a Mortgage Loan Purchase Agreement dated as
of
__________ __, _____;
|
4.
|
Such
Mortgage Note and/or Assignment of Mortgage is not outstanding pursuant
to
a request for release of Documents;
|
|
5.
|
Aforesaid
Mortgage Note and/or Assignment of Mortgage (the “Original”) has been
lost;
|
|
6.
|
Deponent
has made or caused to be made a diligent search for the Original
and has
been unable to find or recover
same;
|
|
7.
|
The
Seller was the Seller of the Original at the time of the loss;
and
|
|
8.
|
Deponent
agrees that, if said Original should ever come into Seller's possession,
custody or power, Seller will immediately and without consideration
surrender the Original to the
Purchaser.
|
|
9.
|
Attached
hereto is a true and correct copy of (i) the Note, endorsed in blank
by
the Mortgagee and (ii) the Mortgage or Deed of Trust (strike one)
which
secures the Note, which Mortgage or Deed of Trust is recorded in
the
county where the property is
located.
|
10.
Deponent
hereby agrees that the Seller (a) shall indemnify and hold harmless the
Purchaser, its successors and assigns, against any loss, liability or damage,
including reasonable attorney's fees, resulting from the unavailability of
any
Notes, including but not limited to any loss, liability or damage arising from
(i) any false statement contained in this Affidavit, (ii) any claim of any
party
that has already purchased a mortgage loan evidenced by the Lost Note or any
interest in such mortgage loan, (iii) any claim of any borrower with respect
to
the existence of terms of a mortgage loan evidenced by the Lost Note on the
related property to the fact that the mortgage loan is not evidenced by an
original note and (iv) the issuance of a new instrument in lieu thereof (items
(i) through (iv) above hereinafter referred to as the “Losses”) and (b) if
required by any Rating Agency in connection with placing such Lost Note into
a
Pass-Through Transfer, shall obtain a surety from an insurer acceptable to
the
applicable Rating Agency to cover any Losses with respect to such Lost
Note.
11.
This
Affidavit is intended to be relied upon by the Purchaser, its successors and
assigns. _____________________, a ______________ corporation represents and
warrants that is has the authority to perform its obligations under this
Affidavit of Lost Note.
Executed
this ____ day, of ___________ ______.
|
SELLER
|
|
|
By:
|
|
|
Name:
|
|
|
Title:
|
|
On
this
_____ day of ________, _____, before me appeared _________________ to me
personally known, who being duly sworn did say that he is the
_____________________ of ____________________ a ______________ corporation
and
that said Affidavit of Lost Note was signed and sealed on behalf of such
corporation and said acknowledged this instrument to be the free act and deed
of
said corporation.
Signature:
[Seal]
EXHIBIT
J-1
FORM
CERTIFICATION TO BE PROVIDED BY THE MASTER SERVICER
WITH
FORM
10-K
Certification
I,
[identify the certifying individual], certify that:
1. I
have
reviewed this annual report on Form 10-K, and all reports on Form 10-D required
to be filed in respect of the period covered by this report on Form 10-K of
[identify issuing entity] (i.e., the name of the specific deal to which this
certification relates rather than just the name of the Depositor)] (the
“Exchange Act periodic reports”);
2. Based
on
my knowledge, the Exchange Act periodic reports, taken as a whole, do not
contain any untrue statement of a material fact or omit to state a material
fact
necessary to make the statements made, in light of the circumstances under
which
such statements were made, not misleading with respect to the period covered
by
this report;
3. Based
on
my knowledge, all of the distribution, servicing and other information required
to be provided under Form 10-D for the period covered by this report is included
in the Exchange Act periodic reports;
4.
I
am
responsible for reviewing the activities performed by the servicer and based
on
my knowledge and the compliance review conducted in preparing the servicer
compliance statement required in this report under Item 1123 of Regulation
AB,
and except as disclosed in the Exchange Act periodic reports, the servicer
has
fulfilled its obligations under the servicing agreement; and
5. All
of
the reports on assessment of compliance with servicing criteria for asset-backed
securities and their related attestation reports on assessment of compliance
with servicing criteria for asset-backed securities required to be included
in
this report in accordance with Item 1122 of Regulation AB and Exchange Act
Rules
13a-18 and 15d-18 have been included as an exhibit to this report, except as
otherwise disclosed in this report. Any material instances of noncompliance
described in such reports have been disclosed in this report on Form
10-K.
In
giving
the certifications above, I have reasonably relied on information provided
to me
by the following unaffiliated parties: [_________________].
|
XXXXX
FARGO BANK, N.A.
|
|
|
By:
|
|
|
Name:
|
|
|
Title:
|
|
|
Date:
|
|
EXHIBIT
J-2
FORM
OF
CERTIFICATION TO BE PROVIDED TO MASTER SERVICER BY THE SERVICER
Xxxxx
Fargo Bank, N.A.
0000
Xxx
Xxxxxxxxx Xxxx
Xxxxxxxx,
Xxxxxxxx 00000
|
Re:
|
Pooling
and Servicing Agreement, dated as of December 1, 2006, among Mortgage
Asset Securitization Transactions, Inc., Barclays Capital Real Estate
Inc.
d/b/a HomEq Servicing, U.S. Bank National Association and Xxxxx Fargo
Bank, N.A (the “Agreement”)
|
Barclays
Capital Real Estate Inc. d/b/a HomEq Servicing as servicer (the “Company”)
hereby certifies to the Master Servicer that:
(A) I
have
reviewed the servicer compliance statement of the Company provided in accordance
with Item 1123 of Regulation AB (the “Compliance Statement”), the report on
assessment of the Company’s compliance with the servicing criteria set forth in
Item 1122(d) of Regulation AB (the “Servicing Criteria”), provided in accordance
with Rules 13a-18 and 15d-18 under Securities Exchange Act of 1934, as amended
(the “Exchange Act”) and Item 1122 of Regulation AB (the “Servicing
Assessment”), the registered public accounting firm’s attestation report
provided in accordance with Rules 13a-18 and 15d-18 under the Exchange Act
and
Section 1122(b) of Regulation AB (the “Attestation Report”), and all servicing
reports, officer’s certificates and other information relating to the servicing
of the Mortgage Loans by the Company during 200[ ] that were delivered by the
Company to the Master
Servicer pursuant
to the Agreement (collectively, the “Company Servicing
Information”);
(B) Based
on
my knowledge, the Company Servicing Information, taken as a whole, does not
contain any untrue statement of a material fact or omit to state a material
fact
necessary to make the statements made, in the light of the circumstances under
which such statements were made, not misleading with respect to the period
of
time covered by the Company Servicing Information;
(C) Based
on
my knowledge, all of the Company Servicing Information required to be provided
by the Company under the Agreement has been provided to the Master
Servicer;
(D) I
am
responsible for reviewing the activities performed by the Company as servicer
under the Agreement, and based on my knowledge and the compliance review
conducted in preparing the Compliance Statement and except as disclosed in
the
Compliance Statement, the Servicing Assessment or the Attestation Report, the
Company has fulfilled its obligations under the Agreement in all material
respects; and
(E) The
Compliance Statement required to be delivered by the Company pursuant to this
Agreement, and the Servicing Assessment and Attestation Report required to
be
provided by the Company and by any Subservicer and Subcontractor pursuant to
the
Agreement, have been provided to the Master Servicer. Any material instances
of
noncompliance described in such reports have been disclosed to the Master
Servicer. Any material instance of noncompliance with the Servicing Criteria
has
been disclosed in such reports.
|
Date:
|
|
|
By:
|
|
|
Name:
|
|
|
Title:
|
EXHIBIT
K
FORM
OF
INTEREST RATE CAP AGREEMENTS
(Multicurrency-Cross
Border)
ISDAâ
International
Swap Dealers Association, Inc.
MASTER
AGREEMENT
dated
as
of December 28, 2006
|
UBS
AG
(“Party
A”)
|
and
|
XXXXX
FARGO BANK, NATIONAL ASSOCIATION, not individually, but solely
as trust
administrator with respect to the MASTR Asset Backed Securities
Trust
2006-NC3, Mortgage Pass Through Certificates, Series
2006-NC3
(“Party
B”)
|
have
entered and/or anticipate entering into one or more transactions (each a
“Transaction”) that are or will be governed by this Master Agreement, which
includes the schedule (the “Schedule”), and the documents and other confirming
evidence (each a “Confirmation”) exchanged between the parties confirming those
Transactions.
Accordingly,
the parties agree as follows:¾
1. Interpretation
(a) Definitions.
The
terms defined in Section 14 and in the Schedule will have the meanings therein
specified for the purpose of this Master Agreement.
(b) Inconsistency.
In the
event of any inconsistency between the provisions of the Schedule and the
other
provisions of this Master Agreement, the Schedule will prevail. In the event
of
any inconsistency between the provisions of any Confirmation and this Master
Agreement (including the Schedule), such Confirmation will prevail for the
purposes of the relevant Transaction.
(c) Single
Agreement.
All
Transactions are entered into in reliance on the fact that this Master Agreement
and all Confirmations form a single agreement between the parties (collectively
referred to as this “Agreement”), and the parties would not otherwise enter into
any Transactions.
2. Obligations
(a) General
Conditions.
(i)
Each
party will make each payment or delivery specified in each Confirmation to
be
made by it, subject to the other provisions of this Agreement.
(ii)
Payments under this Agreement will be made on the due date for value on that
date in the place of the account specified in the relevant Confirmation or
otherwise pursuant to this Agreement, in freely transferable funds and
in
the manner customary for
payments in the required currency.
Where settlement is by delivery (that is, other than by payment), such delivery
will be made for receipt on the due date in the manner customary for the
relevant obligation unless otherwise specified in the relevant Confirmation
or
elsewhere in this Agreement.
(iii)
Each obligation of each party under Section 2(a)(i) is subject to (1) the
condition precedent that no Event of Default or Potential Event of Default
with
respect to the other party has occurred and is continuing, (2) the condition
precedent that no Early Termination Date in respect of the relevant Transaction
has occurred or been effectively designated and (3) each other applicable
condition precedent specified in this Agreement.
value
of
that which was (or would have been) required to be delivered as of the
originally scheduled date for delivery, in each case together with (to the
extent permitted under applicable law) interest, in the currency of such
amounts, from (and including) the date
such
amounts or obligations were or
would
have been
required to have been paid or performed to (but excluding) such
Early Termination Date, at the Applicable Rate. Such amounts of interest
will be
calculated on the basis of daily compounding and the actual number of days
elapsed. The fair market value of any obligation referred to in clause (b)
above
shall be reasonably determined by the party obliged to make the determination
under Section 6(e) or, if each party is so obliged, it shall be the average
of
the Termination Currency Equivalents of the fair market values reasonably
determined by both parties.
IN
WITNESS WHEREOF the parties have executed this document on the respective
dates
specified below with effect from the date specified on the first page of
this
document.
|
UBS
AG
(“Party
A”)
|
XXXXX
FARGO BANK, NATIONAL ASSOCIATION, not individually, but solely
as trust
administrator with respect to the MASTR Asset Backed Securities
Trust
2006-NC3, Mortgage Pass Through Certificates, Series
2006-NC3
(“Party
B”)
|
|||
|
(Name
of Party)
|
(Name
of Party)
|
|||
|
By:
|
By:
|
|||
|
Name:
|
Name:
|
|||
|
Title:
|
Title:
|
|||
|
Date:
|
Date:
|
|||
ASSIGNMENT
AGREEMENT
UBS
AG has entered into the transaction listed on Attachment 1 hereto with Reference
Number 37533977 (the “Old Transaction”) with UBS Real Estate Securities, Inc.
(“UBS Real Estate”).
For
valuable consideration, receipt of which is hereby acknowledged, UBS Real
Estate
hereby assigns, transfers and sets over effective 28 December 2006 unto Mortgage
Asset Securitization Transactions Inc. (“MASTR”), without recourse all of its
rights, title and interest in and to the Old Transaction and UBS Real Estate
hereby gives MASTR and its assigns full power and authority for its or their
own
uses and benefit, but at its or their own cost, to demand, collect, receive
and
give acquittance for the same or any part of thereof, and to prosecute or
withdraw any suits or proceedings therefore. UBS AG hereby consents to the
assignment of the Old Transaction to MASTR as herein provided.
Upon
the
effectiveness of such assignment, for valuable consideration, receipt of
which
is hereby acknowledged, MASTR hereby assigns, transfers and sets over effective
28 December 2006 unto
Xxxxx Fargo Bank, National Association., not individually, but solely as
trust
administrator with respect to the MASTR Asset Backed Securities Trust 2006-NC3,
Mortgage Pass Through Certificates, Series 2006-NC3
(the
“Trust”), without recourse, all of its rights, title and interest in and to the
Old Transaction (as so assigned and transferred, referenced by UBS AG as
a new
transaction with Reference Number 37536063 as listed on Attachment 2 hereto
and
referred to as the “New Transaction”) and MASTR hereby gives the Trust and its
assigns full power and authority for its or their own uses and benefit, but
at
its or their own cost, to demand, collect, receive and give acquittance for
the
same or any part of thereof, and to prosecute or withdraw any suits or
proceedings therefor. UBS AG hereby consents to the assignment of the New
Transaction to the Trust as herein provided, with the understanding that
the
provisions labeled “Additional Provisions” in the confirmation relating to the
New Transaction shall become effective upon the assignment to the
Trust.
Each
party hereby represents and warrants to the other that the execution, delivery
and performance of this Assignment Agreement by it are within its powers,
and
have been duly authorized by all necessary corporate or other action and
that
this Assignment Agreement constitutes its legal, valid and binding
obligation.
This
Assignment Agreement shall be governed by and construed and interpreted in
accordance with the laws of the State of New York without regard the conflict
of
law provisions thereof other than New York General Obligations Law Sections
5-1401 and 5-1402.
IN
WITNESS WHEREOF, the parties have duly executed this Assignment Agreement
as of
the date first written above.
|
UBS
AG
|
UBS
REAL ESTATE SECURITIES, INC.
|
|||
|
By:
|
By:
|
|||
|
Name:
|
Xxxxxxxxxxx
Xxxxxx
|
Name:
|
||
|
Title:
|
Director
|
Title:
|
||
|
By:
|
By:
|
|||
|
Name:
|
Xxxxxxxx
XxXxxxxx
|
Name:
|
||
|
Title:
|
Associate
Director
|
Title:
|
||
|
MORTGAGE
ASSET SECURITIZATION TRANSACTIONS INC.
|
Xxxxx
Fargo Bank, National Association., not individually, but solely
as trust
administrator with respect to the MASTR Asset Backed Securities
Trust
2006-NC3, Mortgage Pass Through Certificates, Series
2006-NC3
|
|||
|
By:
|
By:
|
|||
|
Name:
|
Name:
|
|||
|
Title:
|
Title:
|
|||
|
By:
|
||||
|
Name:
|
||||
|
Title:
|
||||
Attachment
1
|
Date:
|
28
December 2006
|
|
To:
|
UBS
Real Estate Securities, Inc. (“Counterparty”)
|
|
Attention:
|
Swaps
Administration
|
|
From:
|
UBS
AG, London Branch
(“UBS AG”)
|
|
Subject:
|
Interest
Rate Cap Transaction
|
|
UBS
AG Ref: 37533977
|
Dear
Sirs
The
purpose of this communication is to confirm the terms and conditions of the
Transaction entered into between us on the Trade Date specified below. This
Confirmation constitutes a “Confirmation” as referred to in the Master Agreement
or Agreement specified below.
The
definitions contained in the 2000 ISDA Definitions as published by the
International Swaps and Derivatives Association, Inc., are incorporated into
this Confirmation. In the event of any inconsistency between any of the
definitions listed above and this Confirmation, this Confirmation will
govern.
If
you
and we are parties to a master agreement that governs transactions of this
type
(whether in the form of the ISDA Master Agreement (Multicurrency-Cross
Border)(the "ISDA Form") or any other form (a "Master Agreement"), then this
Confirmation will supplement, form a part of, and be subject to that Master
Agreement. If you and we are not parties to such a Master Agreement, then
you
and we agree to use all reasonable efforts promptly to negotiate, execute
and
deliver an agreement in the form of the ISDA Form, with such modifications
as
you and we will in good faith agree. Upon the execution by you and us of
such an
agreement, this Confirmation will supplement, form a part of and be subject
to
and governed by that agreement, except as expressly modified below. Until
we
execute and deliver that agreement, this Confirmation, together with all
other
documents referring to the ISDA Form (each a "Confirmation") confirming
transactions (each a "Transaction") entered into between us (notwithstanding
anything to the contrary in a confirmation), shall supplement, form a part
of,
and be subject to an agreement in the form of the ISDA Form as if we had
executed an agreement in such form (but without any Schedule except for the
election of the laws of New York as the Governing Law and U.S. Dollars as
the
Termination Currency) on the Trade Date of the first Transaction between
us
(hereinafter the "Agreement"). In the event of any inconsistency between
the
provisions of any such Agreement and this Confirmation, this Confirmation
will
prevail for the purposes of this Transaction.
The
terms
of the particular Cap Transaction to which this Confirmation relates are
as
follows:
|
Trade
Date:
|
28
December 2006
|
|
Effective
Date
|
25
January 2007
|
|
Termination
Date:
|
25
December 2013,
subject to adjustment in accordance with the Modified Following
Business
Day Convention.
|
|
Calculation
Amount:
|
Initially
USD 1,461,000.00, amortizing as per Amortizing Schedule
below
|
|
Amortization
Schedule:
|
|||
|
Period
From (and including)
|
Period
To (but excluding)
|
Calculation
Amount (USD)
|
|
Effective
Date
|
25-Feb-07
|
1,461,000.00
|
|
25-Feb-07
|
25-Mar-07
|
3,282,000.00
|
|
25-Mar-07
|
25-Apr-07
|
5,460,000.00
|
|
25-Apr-07
|
25-May-07
|
7,987,000.00
|
|
25-May-07
|
25-Jun-07
|
10,848,000.00
|
|
25-Jun-07
|
25-Jul-07
|
14,022,000.00
|
|
25-Jul-07
|
25-Aug-07
|
17,482,000.00
|
|
25-Aug-07
|
25-Sep-07
|
21,194,000.00
|
|
25-Sep-07
|
25-Oct-07
|
25,055,000.00
|
|
25-Oct-07
|
25-Nov-07
|
28,577,000.00
|
|
25-Nov-07
|
25-Dec-07
|
31,780,000.00
|
|
25-Dec-07
|
25-Jan-08
|
34,684,000.00
|
|
25-Jan-08
|
25-Feb-08
|
37,308,000.00
|
|
25-Feb-08
|
25-Mar-08
|
39,671,000.00
|
|
25-Mar-08
|
25-Apr-08
|
41,789,000.00
|
|
25-Apr-08
|
25-May-08
|
43,677,000.00
|
|
25-May-08
|
25-Jun-08
|
45,351,000.00
|
|
25-Jun-08
|
25-Jul-08
|
46,826,000.00
|
|
25-Jul-08
|
25-Aug-08
|
48,202,000.00
|
|
25-Aug-08
|
25-Sep-08
|
51,470,000.00
|
|
25-Sep-08
|
25-Oct-08
|
53,962,000.00
|
|
25-Oct-08
|
25-Nov-08
|
55,790,000.00
|
|
25-Nov-08
|
25-Dec-08
|
57,046,000.00
|
|
25-Dec-08
|
25-Jan-09
|
57,791,000.00
|
|
25-Jan-09
|
25-Feb-09
|
57,645,000.00
|
|
25-Feb-09
|
25-Mar-09
|
57,397,000.00
|
|
25-Mar-09
|
25-Apr-09
|
57,058,000.00
|
|
25-Apr-09
|
25-May-09
|
56,639,000.00
|
|
25-May-09
|
25-Jun-09
|
56,145,000.00
|
|
25-Jun-09
|
25-Jul-09
|
55,586,000.00
|
|
25-Jul-09
|
25-Aug-09
|
55,017,000.00
|
|
25-Aug-09
|
25-Sep-09
|
54,495,000.00
|
|
25-Sep-09
|
25-Oct-09
|
53,857,000.00
|
|
25-Oct-09
|
25-Nov-09
|
53,122,000.00
|
|
25-Nov-09
|
25-Dec-09
|
52,304,000.00
|
|
25-Dec-09
|
25-Jan-10
|
51,419,000.00
|
|
25-Jan-10
|
25-Feb-10
|
50,490,000.00
|
|
25-Feb-10
|
25-Mar-10
|
49,543,000.00
|
|
25-Mar-10
|
25-Apr-10
|
48,580,000.00
|
|
25-Apr-10
|
25-May-10
|
47,607,000.00
|
|
25-May-10
|
25-Jun-10
|
46,625,000.00
|
|
25-Jun-10
|
25-Jul-10
|
45,638,000.00
|
|
25-Jul-10
|
25-Aug-10
|
44,647,000.00
|
|
25-Aug-10
|
25-Sep-10
|
43,656,000.00
|
|
25-Sep-10
|
25-Oct-10
|
42,667,000.00
|
|
25-Oct-10
|
25-Nov-10
|
41,682,000.00
|
|
25-Nov-10
|
25-Dec-10
|
40,703,000.00
|
|
25-Dec-10
|
25-Jan-11
|
39,730,000.00
|
|
25-Jan-11
|
25-Feb-11
|
38,766,000.00
|
|
25-Feb-11
|
25-Mar-11
|
37,812,000.00
|
|
25-Mar-11
|
25-Apr-11
|
36,869,000.00
|
|
25-Apr-11
|
25-May-11
|
35,938,000.00
|
|
25-May-11
|
25-Jun-11
|
35,020,000.00
|
|
25-Jun-11
|
25-Jul-11
|
34,115,000.00
|
|
25-Jul-11
|
25-Aug-11
|
33,225,000.00
|
|
25-Aug-11
|
25-Sep-11
|
32,350,000.00
|
|
25-Sep-11
|
25-Oct-11
|
31,489,000.00
|
|
25-Oct-11
|
25-Nov-11
|
30,643,000.00
|
|
25-Nov-11
|
25-Dec-11
|
29,813,000.00
|
|
25-Dec-11
|
25-Jan-12
|
28,999,000.00
|
|
25-Jan-12
|
25-Feb-12
|
28,202,000.00
|
|
25-Feb-12
|
25-Mar-12
|
27,422,000.00
|
|
25-Mar-12
|
25-Apr-12
|
26,659,000.00
|
|
25-Apr-12
|
25-May-12
|
25,912,000.00
|
|
25-May-12
|
25-Jun-12
|
25,182,000.00
|
|
25-Jun-12
|
25-Jul-12
|
24,469,000.00
|
|
25-Jul-12
|
25-Aug-12
|
23,773,000.00
|
|
25-Aug-12
|
25-Sep-12
|
23,094,000.00
|
|
25-Sep-12
|
25-Oct-12
|
22,431,000.00
|
|
25-Oct-12
|
25-Nov-12
|
21,784,000.00
|
|
25-Nov-12
|
25-Dec-12
|
21,154,000.00
|
|
25-Dec-12
|
25-Jan-13
|
20,540,000.00
|
|
25-Jan-13
|
25-Feb-13
|
19,941,000.00
|
|
25-Feb-13
|
25-Mar-13
|
19,358,000.00
|
|
25-Mar-13
|
25-Apr-13
|
18,791,000.00
|
|
25-Apr-13
|
25-May-13
|
18,238,000.00
|
|
25-May-13
|
25-Jun-13
|
17,701,000.00
|
|
25-Jun-13
|
25-Jul-13
|
17,177,000.00
|
|
25-Jul-13
|
25-Aug-13
|
16,669,000.00
|
|
25-Aug-13
|
25-Sep-13
|
16,174,000.00
|
|
25-Sep-13
|
25-Oct-13
|
15,693,000.00
|
|
25-Oct-13
|
25-Nov-13
|
15,225,000.00
|
|
00-Xxx-00
|
Xxxxxxxxxxx
Date
|
14,771,000.00
|
The
dates
in the above schedule with the exception of the Effective Date will be subject
to adjustment in accordance with the Modified Following Business Day
Convention.
|
Seller
of the Cap:
|
UBS
AG
|
|
Buyer
of the Cap:
|
Counterparty
|
|
Calculation
Agent:
|
UBS
AG, unless otherwise specified in the schedule to the Master
Agreement
|
|
Business
Days:
|
New
York
|
|
Broker:
|
None
|
|
Fixed
Rate Payer:
|
Counterparty
|
|
Fixed
Amount:
|
Not
Applicable
|
|
Fixed
Rate Payer Payment Date:
|
Not
Applicable
|
|
Business
Day Convention:
|
Not
Applicable
|
Floating
Amounts
|
Floating
Rate Payer:
|
UBS
AG
|
|
Cap
Rate:
|
As
per the Cap Rate Schedule Below
|
Cap
Rate Schedule:
|
Period
From (and including)
|
Period
To (but excluding)
|
Cap
Rate
|
|
Effective
Date
|
25
November 2011
|
7.00%
|
|
25
November 2011
|
Termination
Date
|
5.55%
|
|
Floating
Amount:
|
To
be determined in accordance with the following formula:
Greater
of
(1)
Calculation Amount * Floating Rate Day Count Fraction * (Floating
Rate
Option - Cap Rate) and
|
|
(2)
0
|
|
|
Floating
Rate Option:
|
USD-LIBOR-BBA
|
|
Designated
Maturity:
|
One
Month
|
|
Spread:
|
None
|
|
Floating
Rate Day Count Fraction:
|
Actual/360
|
|
Floating
Rate Payer End Dates:
|
25
January, 25 February, 25 March, 25 April, 25 May, 25 June, 25 July,
25
August, 25 September, 25 October, 25 November and 25 December,
in each
year, from and including 25 February 2007, up to and including
the
Termination Date, subject to adjustment in accordance with the
Business
Day Convention specified immediately below.
|
|
Floating
Rate Payer Payment Dates:
|
Early
Payment shall be applicable. The Floating Rate Payer Payment Dates
shall
be two Business Days prior to each Floating Rate Payer Period End
Date.
|
|
Business
Day Convention:
|
Modified
Following
|
Relationship
Between Parties
Each
party will be deemed to represent to the other party on the date on which
it
enters into this Transaction that (in the absence of a written Agreement
between
the parties which expressly imposes affirmative obligations to the contrary
for
this Transaction):
(a)
Non-Reliance. Each party is acting for its own account, and has made its
own
independent decisions to enter into this Transaction and this such Transaction
is appropriate or proper for it based upon its own judgement and upon advice
from such advisers as it has deemed necessary. Each party is not relying
on any
communication (written or oral) of the other party as investment advice or
as a
recommendation to enter into this Transaction; it being understood that
information and explanation relating to the terms and conditions of this
Transaction shall not be considered investment advice or a recommendation
to
enter into this Transaction. No communication (written or oral) received
from
the other party shall be deemed to be an assurance or guarantee as to the
expected results of this Transaction.
(b)
Assessment and Understanding. Each party is capable of assessing the merits
of
and understands (on its own behalf or through independent professional advice),
and accepts, the terms, conditions and risks of this Transaction. Each party
is
also capable of assuming and assumes, the risks of this
Transaction.
(c)
Status of the Parties. Neither party is acting as a fiduciary for or as an
adviser to the other in respect of this Transaction.
References
in this clause to "a party" shall, in the case of UBS AG and where the context
so allows, include references to any affiliate of UBS AG.
|
Currency:
|
USD
|
|
Correspondent
Bank:
|
UBS
AG,
XXXXXXXX
BRANCH
|
|
Swift
Address:
|
XXXXXX00XXX
|
|
Favour:
|
UBS
AG LONDON
BRANCH
|
|
Swift
Address:
|
XXXXXX0XXXX
|
|
Account
No:
|
101-wa-140007-000
|
|
Further
Credit To:
|
|
|
Swift
Address:
|
|
|
Account
No:
|
Offices
| (a) |
The
office of UBS AG for the Interest Rate Cap Transaction is London;
and
|
| (b) |
The
office of Counterparty for the Interest Rate Cap Transaction is
New
York.
|
|
Contact
Names at UBS AG:
|
||
|
Payment
Inquiries
|
Elisa
Doctor
|
Email:
XX-XXXXXXXXXX-XXXXX@xxx.xxx
|
|
Pre
Value Payments:
|
Pre
Value Payment Investigations:
|
203.719-1110
|
|
Post
Value Payments:
|
Post
Value Payment Investigations:
|
203.719.1110
|
|
Confirmation
Queries:
|
Confirmation
Control:
|
203.719.3733
|
|
ISDA
Documentation:
|
Legal
|
203.719.4747
|
|
Swift:
|
UBSWGB2L
|
|
Fax:
|
(00)
00 0000 0000/2990
|
|
Address:
|
UBS
AG
|
|
000
Xxxxxxxxx Xxxxxx
Xxxxxx
XX0X 0XX
|
Please
confirm that the foregoing correctly sets forth the terms and conditions
of our
agreement by executing a copy of this Confirmation and returning it to us
or by
sending to us a letter or facsimile substantially similar to this letter,
which
letter or facsimile sets forth the material terms of the Transaction to which
this Confirmation relates and indicates your agreement to those terms or
by
sending to us a return letter or facsimile in the form attached.
This
Agreement may be executed in several counterparts, each of which shall be
deemed
an original but all of which together shall constitute one and the same
instrument.
For
and
on Behalf of
UBS
AG,
London Branch
|
By:
|
|
By:
|
|
|
|
Name:
|
Xxxxxxxxxxx
Xxxxxx
|
Name:
|
Xxxxxxxx
XxXxxxxx
|
|
|
Title:
|
Associate
Director
|
Title:
|
Associate
Director
|
Acknowledged
and Agreed by UBS Real Estate Securities, Inc. as of the date first written
above:
|
By:
|
|
|
Name
:
|
|
|
Title
:
|
|
UBS
AG
London Branch, 0 Xxxxxxxx Xxxxxx, Xxxxxx, XX0X 0XX
UBS
AG is
a member of the London Stock Exchange and is regulated in the UK by the
Financial Services Authority.
Representatives
of UBS Limited introduce trades to UBS AG via UBS Limited.
Attachment
2
|
Date:
|
28
December 2006
|
|
To:
|
Xxxxx
Fargo Bank, National Association., not individually, but solely
as trust
administrator with respect to the MASTR Asset Backed Securities
Trust
2006-NC3, Mortgage Pass Through Certificates, Series 2006-NC3
(“Counterparty”)
|
|
Attention:
|
Client
Manager - MABS 2006-NC3
|
|
From:
|
UBS
AG, London Branch
(“UBS AG”)
|
|
Subject:
|
Interest
Rate Cap Transaction
|
|
UBS
AG Ref: 37536063
|
Dear
Sirs
The
purpose of this communication is to confirm the terms and conditions of the
Transaction entered into between us on the Trade Date specified below. This
Confirmation constitutes a “Confirmation” as referred to in the Master Agreement
or Agreement specified below.
The
definitions contained in the 2000 ISDA Definitions as published by the
International Swaps and Derivatives Association, Inc., are incorporated into
this Confirmation. In the event of any inconsistency between any of the
definitions listed above and this Confirmation, this Confirmation will
govern.
This
Confirmation supplements, forms part of, and is subject to, the ISDA Master
Agreement dated as of 28 December 2006 as amended and supplemented from time
to
time (the "Agreement"), between Counterparty and UBS AG. All provisions
contained in the Agreement govern this Confirmation except as expressly modified
below.
The
terms
of the particular Cap Transaction to which this Confirmation relates are
as
follows:
|
General
Terms
|
|
|
Trade
Date:
|
28
December 2006
|
|
Effective
Date
|
25
January 2007
|
|
Termination
Date:
|
25
December 2013,
subject to adjustment in accordance with the Modified Following
Business
Day Convention.
|
|
Calculation
Amount:
|
Initially
5,844.00 amortizing as per Amortizing Schedule
below
|
|
Amortization
Schedule:
|
|
Period
From (and including)
|
Period
To (but excluding)
|
Calculation
Amount (USD)
|
|
Effective
Date
|
25-Feb-07
|
5,844.00
|
|
25-Feb-07
|
25-Mar-07
|
13,128.00
|
|
25-Mar-07
|
25-Apr-07
|
21,840.00
|
|
25-Apr-07
|
25-May-07
|
31,948.00
|
|
25-May-07
|
25-Jun-07
|
43,392.00
|
|
25-Jun-07
|
25-Jul-07
|
56,088.00
|
|
25-Jul-07
|
25-Aug-07
|
69,928.00
|
|
25-Aug-07
|
25-Sep-07
|
84,776.00
|
|
25-Sep-07
|
25-Oct-07
|
100,220.00
|
|
25-Oct-07
|
25-Nov-07
|
114,308.00
|
|
25-Nov-07
|
25-Dec-07
|
127,120.00
|
|
25-Dec-07
|
25-Jan-08
|
138,736.00
|
|
25-Jan-08
|
25-Feb-08
|
149,232.00
|
|
25-Feb-08
|
25-Mar-08
|
158,684.00
|
|
25-Mar-08
|
25-Apr-08
|
167,156.00
|
|
25-Apr-08
|
25-May-08
|
174,708.00
|
|
25-May-08
|
25-Jun-08
|
181,404.00
|
|
25-Jun-08
|
25-Jul-08
|
187,304.00
|
|
25-Jul-08
|
25-Aug-08
|
192,808.00
|
|
25-Aug-08
|
25-Sep-08
|
205,880.00
|
|
25-Sep-08
|
25-Oct-08
|
215,848.00
|
|
25-Oct-08
|
25-Nov-08
|
223,160.00
|
|
25-Nov-08
|
25-Dec-08
|
228,184.00
|
|
25-Dec-08
|
25-Jan-09
|
231,164.00
|
|
25-Jan-09
|
25-Feb-09
|
230,580.00
|
|
25-Feb-09
|
25-Mar-09
|
229,588.00
|
|
25-Mar-09
|
25-Apr-09
|
228,232.00
|
|
25-Apr-09
|
25-May-09
|
226,556.00
|
|
25-May-09
|
25-Jun-09
|
224,580.00
|
|
25-Jun-09
|
25-Jul-09
|
222,344.00
|
|
25-Jul-09
|
25-Aug-09
|
220,068.00
|
|
25-Aug-09
|
25-Sep-09
|
217,980.00
|
|
25-Sep-09
|
25-Oct-09
|
215,428.00
|
|
25-Oct-09
|
25-Nov-09
|
212,488.00
|
|
25-Nov-09
|
25-Dec-09
|
209,216.00
|
|
25-Dec-09
|
25-Jan-10
|
205,676.00
|
|
25-Jan-10
|
25-Feb-10
|
201,960.00
|
|
25-Feb-10
|
25-Mar-10
|
198,172.00
|
|
25-Mar-10
|
25-Apr-10
|
194,320.00
|
|
25-Apr-10
|
25-May-10
|
190,428.00
|
|
25-May-10
|
25-Jun-10
|
186,500.00
|
|
25-Jun-10
|
25-Jul-10
|
182,552.00
|
|
25-Jul-10
|
25-Aug-10
|
178,588.00
|
|
25-Aug-10
|
25-Sep-10
|
174,624.00
|
|
25-Sep-10
|
25-Oct-10
|
170,668.00
|
|
25-Oct-10
|
25-Nov-10
|
166,728.00
|
|
25-Nov-10
|
25-Dec-10
|
162,812.00
|
|
25-Dec-10
|
25-Jan-11
|
158,920.00
|
|
25-Jan-11
|
25-Feb-11
|
155,064.00
|
|
25-Feb-11
|
25-Mar-11
|
151,248.00
|
|
25-Mar-11
|
25-Apr-11
|
147,476.00
|
|
25-Apr-11
|
25-May-11
|
143,752.00
|
|
25-May-11
|
25-Jun-11
|
140,080.00
|
|
25-Jun-11
|
25-Jul-11
|
136,460.00
|
|
25-Jul-11
|
25-Aug-11
|
132,900.00
|
|
25-Aug-11
|
25-Sep-11
|
129,400.00
|
|
25-Sep-11
|
25-Oct-11
|
125,956.00
|
|
25-Oct-11
|
25-Nov-11
|
122,572.00
|
|
25-Nov-11
|
25-Dec-11
|
119,252.00
|
|
25-Dec-11
|
25-Jan-12
|
115,996.00
|
|
25-Jan-12
|
25-Feb-12
|
112,808.00
|
|
25-Feb-12
|
25-Mar-12
|
109,688.00
|
|
25-Mar-12
|
25-Apr-12
|
106,636.00
|
|
25-Apr-12
|
25-May-12
|
103,648.00
|
|
25-May-12
|
25-Jun-12
|
100,728.00
|
|
25-Jun-12
|
25-Jul-12
|
97,876.00
|
|
25-Jul-12
|
25-Aug-12
|
95,092.00
|
|
25-Aug-12
|
25-Sep-12
|
92,376.00
|
|
25-Sep-12
|
25-Oct-12
|
89,724.00
|
|
25-Oct-12
|
25-Nov-12
|
87,136.00
|
|
25-Nov-12
|
25-Dec-12
|
84,616.00
|
|
25-Dec-12
|
25-Jan-13
|
82,160.00
|
|
25-Jan-13
|
25-Feb-13
|
79,764.00
|
|
25-Feb-13
|
25-Mar-13
|
77,432.00
|
|
25-Mar-13
|
25-Apr-13
|
75,164.00
|
|
25-Apr-13
|
25-May-13
|
72,952.00
|
|
25-May-13
|
25-Jun-13
|
70,804.00
|
|
25-Jun-13
|
25-Jul-13
|
68,708.00
|
|
25-Jul-13
|
25-Aug-13
|
66,676.00
|
|
25-Aug-13
|
25-Sep-13
|
64,696.00
|
|
25-Sep-13
|
25-Oct-13
|
62,772.00
|
|
25-Oct-13
|
25-Nov-13
|
60,900.00
|
|
00-Xxx-00
|
Xxxxxxxxxxx
Date
|
59,084.00
|
The
dates
in the above schedule with the exception of the Effective Date will be subject
to adjustment in accordance with the Modified Following Business Day
Convention.
|
Seller
of the Cap:
|
UBS
AG
|
|
Buyer
of the Cap:
|
Counterparty
|
|
Calculation
Agent:
|
UBS
AG, unless otherwise specified in the schedule to the Master
Agreement
|
|
Business
Days:
|
New
York
|
|
Broker:
|
None
|
|
Fixed
Amounts
|
|
|
Fixed
Rate Payer:
|
Counterparty
|
|
Fixed
Amount:
|
Not
Applicable
|
|
Fixed
Rate Payer Payment Date:
|
Not
Applicable
|
|
Business
Day Convention:
|
Not
Applicable
|
Floating
Amounts
|
Floating
Rate Payer:
|
UBS
AG
|
||
|
Cap
Rate:
|
As
per the Cap Rate Schedule below
|
||
|
Cap
Rate Schedule:
|
|||
|
Period
From (and including)
|
Period
To (but excluding)
|
Cap
Rate
|
|
Effective
Date
|
25
November 2011
|
7.00%
|
|
25
November 2011
|
Termination
Date
|
5.55%
|
|
Floating
Amount:
|
To
be determined in accordance with the following formula:
Greater
of
(1)
250 * Calculation Amount * Floating Rate Day Count Fraction * (Floating
Rate Option - Cap Rate) and
|
|
(2)
0
|
|
|
Floating
Rate Option:
|
USD-LIBOR-BBA
|
|
Designated
Maturity:
|
One
Month
|
|
Spread:
|
None
|
|
Floating
Rate Day Count Fraction:
|
Actual/360
|
|
Floating
Rate Payer End Dates:
|
25
January, 25 February, 25 March, 25 April, 25 May, 25 June, 25 July,
25
August, 25 September, 25 October, 25 November and 25 December,
in each
year, from and including 25 February 2007, up to and including
the
Termination Date, subject to adjustment in accordance with the
Business
Day Convention specified immediately below.
|
|
Floating
Rate Payer Payment Dates:
|
Early
Payment shall be applicable. The Floating Rate Payer Payment Dates
shall
be two Business Days prior to each Floating Rate Payer Period End
Date.
|
|
Business
Day Convention:
|
Modified
Following
|
Relationship
Between Parties
Each
party will be deemed to represent to the other party on the date on which
it
enters into this Transaction that (in the absence of a written Agreement
between
the parties which expressly imposes affirmative obligations to the contrary
for
this Transaction):
(a)
Non-Reliance. Each party is acting for its own account, and has made its
own
independent decisions to enter into this Transaction and this such Transaction
is appropriate or proper for it based upon its own judgement and upon advice
from such advisers as it has deemed necessary. Each party is not relying
on any
communication (written or oral) of the other party as investment advice or
as a
recommendation to enter into this Transaction; it being understood that
information and explanation relating to the terms and conditions of this
Transaction shall not be considered investment advice or a recommendation
to
enter into this Transaction. No communication (written or oral) received
from
the other party shall be deemed to be an assurance or guarantee as to the
expected results of this Transaction.
(b)
Assessment and Understanding. Each party is capable of assessing the merits
of
and understands (on its own behalf or through independent professional advice),
and accepts, the terms, conditions and risks of this Transaction. Each party
is
also capable of assuming and assumes, the risks of this
Transaction.
(c)
Status of the Parties. Neither party is acting as a fiduciary for or as an
adviser to the other in respect of this Transaction.
(d)
Eligible
Contract Participant.
Each
party constitutes an “eligible contract participant” as such term is defined in
Section 1(a)12 of the Commodity Exchange Act, as amended.
Fully-Paid
Transactions
Notwithstanding the terms of Sections 5 and 6 of the ISDA Master Agreement,
(a)
the occurrence of an event described in Section 5(a) of the Form Master
Agreement with respect to Counterparty shall not constitute an Event of Default
or Potential Event of Default with respect to Counterparty as the Defaulting
Party and (b) UBS AG shall be entitled to designate an Early Termination
Date
pursuant to Section 6 of the ISDA Master Agreement only as a result of a
Termination Event set forth in either Section 5(b)(i) or Section 5(b)(ii)
of the
ISDA Master Agreement with respect to UBS AG as the Affected Party or Section
5(b)(iii) of the ISDA Master Agreement with respect to UBS AG as the Burdened
Party.
References
in this clause to "a party" shall, in the case of UBS AG and where the context
so allows, include references to any affiliate of UBS AG.
|
Account
Details for UBS AG:
|
|
Currency:
|
USD
|
|
Correspondent
Bank:
|
UBS
AG,
XXXXXXXX
BRANCH
|
|
Swift
Address:
|
XXXXXX00XXX
|
|
Favour:
|
UBS
AG LONDON
BRANCH
|
|
Swift
Address:
|
XXXXXX0XXXX
|
|
Account
No:
|
101-wa-140007-000
|
|
Further
Credit To:
|
|
|
Swift
Address:
|
|
|
Account
No:
|
Offices
| (a) |
The
office of UBS AG for the Interest Rate Cap Transaction is London;
and
|
| (b) |
The
office of Counterparty for the Interest Rate Cap Transaction
is New
York
|
|
Contact
Names at UBS AG:
|
||
|
Payment
Inquiries
|
Elisa
Doctor
|
Email:
XX-XXXXXXXXXX-XXXXX@xxx.xxx
|
|
Pre
Value Payments:
|
Pre
Value Payment Investigations:
|
203.719-1110
|
|
Post
Value Payments:
|
Post
Value Payment Investigations:
|
203.719.1110
|
|
Confirmation
Queries:
|
Confirmation
Control:
|
203.719.3733
|
|
ISDA
Documentation:
|
Legal
|
203.719.4747
|
|
Swift:
|
UBSWGB2L
|
|
Fax:
|
(00)
00 0000 0000/2990
|
|
Address:
|
UBS
AG
|
|
000
Xxxxxxxxx Xxxxxx
Xxxxxx
XX0X 0XX
|
Contact
Info:
Xxxxx
Fargo Bank, N.A.
0000
Xxx
Xxxxxxxxx Xxxx
Xxxxxxxx,
XX 00000-0000
Attn:
Client Manager MABS 2006-NC3
(p)
410.884.2000
(f)
410.715.2380
Wiring
Instructions:
XXXXX
XXXXX XXXX, XX
XXX#
000000000
FOR
CREDIT TO: CORPORATE TRUST CLEARING
ACCT:
0000000000
FFC
TO: Cap Account, Account # 00000000
Please
confirm that the foregoing correctly sets forth the terms and conditions
of our
agreement by executing a copy of this Confirmation and returning it to us
or by
sending to us a letter or facsimile substantially similar to this letter,
which
letter or facsimile sets forth the material terms of the Transaction to which
this Confirmation relates and indicates your agreement to those terms or
by
sending to us a return letter or facsimile in the form attached.
This
Agreement may be executed in several counterparts, each of which shall be
deemed
an original but all of which together shall constitute one and the same
instrument.
Yours
Faithfully
For
and
on Behalf of
UBS
AG,
London Branch
|
By:
|
|
By:
|
||
|
Name:
|
Xxxxxxxxxxx
Xxxxxx
|
Name:
|
Xxxxxxxx
XxXxxxxx
|
|
|
Title:
|
Associate
Director
|
Title:
|
Associate
Director
|
Acknowledged
and Agreed by Xxxxx Fargo Bank, National Association., not individually,
but
solely as trust administrator with respect to the MASTR Asset Backed Securities
Trust 2006-NC3, Mortgage Pass Through Certificates, Series 2006-NC3 as of
the
date first written above:
|
By:
|
|
|
Name
:
|
|
|
Title
:
|
|
UBS
AG
London Branch, 0 Xxxxxxxx Xxxxxx, Xxxxxx, XX0X 0XX
UBS
AG is
a member of the London Stock Exchange and is regulated in the UK by the
Financial Services Authority.
Representatives
of UBS Limited introduce trades to UBS AG via UBS Limited.
ASSIGNMENT
AGREEMENT
UBS
AG has entered into the transaction listed on Attachment 1 hereto with Reference
Number 37533981 (the “Old Transaction”) with UBS Real Estate Securities, Inc.
(“UBS Real Estate”).
For
valuable consideration, receipt of which is hereby acknowledged, UBS Real
Estate
hereby assigns, transfers and sets over effective 28 December 2006 unto Mortgage
Asset Securitization Transactions Inc. (“MASTR”), without recourse all of its
rights, title and interest in and to the Old Transaction and UBS Real Estate
hereby gives MASTR and its assigns full power and authority for its or their
own
uses and benefit, but at its or their own cost, to demand, collect, receive
and
give acquittance for the same or any part of thereof, and to prosecute or
withdraw any suits or proceedings therefore. UBS AG hereby consents to the
assignment of the Old Transaction to MASTR as herein provided.
Upon
the
effectiveness of such assignment, for valuable consideration, receipt of
which
is hereby acknowledged, MASTR hereby assigns, transfers and sets over effective
28 December 2006 unto Xxxxx Fargo Bank, N.A., not individually, but solely
as
trust administrator with respect to the MASTR Asset Backed Securities Trust
2006-NC3, Mortgage Pass Through Certificates, Series 2006-NC3 (the “Trust”),
without recourse, all of its rights, title and interest in and to the Old
Transaction (as so assigned and transferred, referenced by UBS AG as a new
transaction with Reference Number 37536083 as listed on Attachment 2 hereto
and
referred to as the “New Transaction”) and MASTR hereby gives the Trust and its
assigns full power and authority for its or their own uses and benefit, but
at
its or their own cost, to demand, collect, receive and give acquittance for
the
same or any part of thereof, and to prosecute or withdraw any suits or
proceedings therefor. UBS AG hereby consents to the assignment of the New
Transaction to the Trust as herein provided, with the understanding that
the
provisions labeled “Additional Provisions” in the confirmation relating to the
New Transaction shall become effective upon the assignment to the
Trust.
Each
party hereby represents and warrants to the other that the execution, delivery
and performance of this Assignment Agreement by it are within its powers,
and
have been duly authorized by all necessary corporate or other action and
that
this Assignment Agreement constitutes its legal, valid and binding
obligation.
This
Assignment Agreement shall be governed by and construed and interpreted in
accordance with the laws of the State of New York without regard the conflict
of
law provisions thereof other than New York General Obligations Law Sections
5-1401 and 5-1402.
IN
WITNESS WHEREOF, the parties have duly executed this Assignment Agreement
as of
the date first written above.
|
UBS
AG
|
UBS
REAL ESTATE SECURITIES, INC.
|
|||
|
By:
|
By:
|
|||
|
Name:
|
Xxxxxxxxxxx
Xxxxxx
|
Name:
|
||
|
Title:
|
Director
|
Title:
|
||
|
By:
|
By:
|
|||
|
Name:
|
Xxxxxxxx
XxXxxxxx
|
Name:
|
||
|
Title:
|
Associate
Director
|
Title:
|
||
|
MORTGAGE
ASSET SECURITIZATION TRANSACTIONS INC.
|
Xxxxx
Fargo Bank, National Association., not individually, but solely
as trust
administrator with respect to the MASTR Asset Backed Securities
Trust
2006-NC3, Mortgage Pass Through Certificates, Series
2006-NC3
|
|||
|
By:
|
By:
|
|||
|
Name:
|
Name:
|
|||
|
Title:
|
Title:
|
|||
|
By:
|
||||
|
Name:
|
||||
|
Title:
|
||||
Attachment
1
|
Date:
|
28
December 2006
|
|
To:
|
UBS
Real Estate Securities, Inc. (“Counterparty”)
|
|
Attention:
|
Swaps
Administration
|
|
From:
|
UBS
AG, London Branch
(“UBS AG”)
|
|
Subject:
|
Interest
Rate Cap Transaction
|
|
UBS
AG Ref: 37533981
|
Dear
Sirs
The
purpose of this communication is to confirm the terms and conditions of the
Transaction entered into between us on the Trade Date specified below. This
Confirmation constitutes a “Confirmation” as referred to in the Master Agreement
or Agreement specified below.
The
definitions contained in the 2000 ISDA Definitions as published by the
International Swaps and Derivatives Association, Inc., are incorporated into
this Confirmation. In the event of any inconsistency between any of the
definitions listed above and this Confirmation, this Confirmation will
govern.
If
you
and we are parties to a master agreement that governs transactions of this
type
(whether in the form of the ISDA Master Agreement (Multicurrency-Cross
Border)(the "ISDA Form") or any other form (a "Master Agreement"), then this
Confirmation will supplement, form a part of, and be subject to that Master
Agreement. If you and we are not parties to such a Master Agreement, then
you
and we agree to use all reasonable efforts promptly to negotiate, execute
and
deliver an agreement in the form of the ISDA Form, with such modifications
as
you and we will in good faith agree. Upon the execution by you and us of
such an
agreement, this Confirmation will supplement, form a part of and be subject
to
and governed by that agreement, except as expressly modified below. Until
we
execute and deliver that agreement, this Confirmation, together with all
other
documents referring to the ISDA Form (each a "Confirmation") confirming
transactions (each a "Transaction") entered into between us (notwithstanding
anything to the contrary in a confirmation), shall supplement, form a part
of,
and be subject to an agreement in the form of the ISDA Form as if we had
executed an agreement in such form (but without any Schedule except for the
election of the laws of New York as the Governing Law and U.S. Dollars as
the
Termination Currency) on the Trade Date of the first Transaction between
us
(hereinafter the "Agreement"). In the event of any inconsistency between
the
provisions of any such Agreement and this Confirmation, this Confirmation
will
prevail for the purposes of this Transaction.
The
terms
of the particular Cap Transaction to which this Confirmation relates are
as
follows:
|
Trade
Date:
|
28
December 2006
|
|
Effective
Date
|
25
January 2007
|
|
Termination
Date:
|
25
December 2013,
subject to adjustment in accordance with the Modified Following
Business
Day Convention.
|
|
Calculation
Amount:
|
Initially
USD 987,000.00, amortizing as per Amortizing Schedule
below
|
|
Amortization
Schedule:
|
|
Period
From (and including)
|
Period
To (but excluding)
|
Calculation
Amount (USD)
|
|
Effective
Date
|
25-Feb-07
|
987,000.00
|
|
25-Feb-07
|
25-Mar-07
|
2,219,000.00
|
|
25-Mar-07
|
25-Apr-07
|
3,694,000.00
|
|
25-Apr-07
|
25-May-07
|
5,406,000.00
|
|
25-May-07
|
25-Jun-07
|
7,346,000.00
|
|
25-Jun-07
|
25-Jul-07
|
9,497,000.00
|
|
25-Jul-07
|
25-Aug-07
|
11,841,000.00
|
|
25-Aug-07
|
25-Sep-07
|
14,352,000.00
|
|
25-Sep-07
|
25-Oct-07
|
16,957,000.00
|
|
25-Oct-07
|
25-Nov-07
|
19,302,000.00
|
|
25-Nov-07
|
25-Dec-07
|
21,404,000.00
|
|
25-Dec-07
|
25-Jan-08
|
23,282,000.00
|
|
25-Jan-08
|
25-Feb-08
|
24,951,000.00
|
|
25-Feb-08
|
25-Mar-08
|
26,426,000.00
|
|
25-Mar-08
|
25-Apr-08
|
27,722,000.00
|
|
25-Apr-08
|
25-May-08
|
28,850,000.00
|
|
25-May-08
|
25-Jun-08
|
29,825,000.00
|
|
25-Jun-08
|
25-Jul-08
|
30,657,000.00
|
|
25-Jul-08
|
25-Aug-08
|
31,427,000.00
|
|
25-Aug-08
|
25-Sep-08
|
33,693,000.00
|
|
25-Sep-08
|
25-Oct-08
|
35,299,000.00
|
|
25-Oct-08
|
25-Nov-08
|
36,356,000.00
|
|
25-Nov-08
|
25-Dec-08
|
36,957,000.00
|
|
25-Dec-08
|
25-Jan-09
|
37,169,000.00
|
|
25-Jan-09
|
25-Feb-09
|
36,801,000.00
|
|
25-Feb-09
|
25-Mar-09
|
36,377,000.00
|
|
25-Mar-09
|
25-Apr-09
|
35,905,000.00
|
|
25-Apr-09
|
25-May-09
|
35,392,000.00
|
|
25-May-09
|
25-Jun-09
|
34,843,000.00
|
|
25-Jun-09
|
25-Jul-09
|
34,262,000.00
|
|
25-Jul-09
|
25-Aug-09
|
33,690,000.00
|
|
25-Aug-09
|
25-Sep-09
|
33,164,000.00
|
|
25-Sep-09
|
25-Oct-09
|
32,562,000.00
|
|
25-Oct-09
|
25-Nov-09
|
31,900,000.00
|
|
25-Nov-09
|
25-Dec-09
|
31,191,000.00
|
|
25-Dec-09
|
25-Jan-10
|
30,451,000.00
|
|
25-Jan-10
|
25-Feb-10
|
29,702,000.00
|
|
25-Feb-10
|
25-Mar-10
|
28,952,000.00
|
|
25-Mar-10
|
25-Apr-10
|
28,205,000.00
|
|
25-Apr-10
|
25-May-10
|
27,462,000.00
|
|
25-May-10
|
25-Jun-10
|
26,724,000.00
|
|
25-Jun-10
|
25-Jul-10
|
25,993,000.00
|
|
25-Jul-10
|
25-Aug-10
|
25,270,000.00
|
|
25-Aug-10
|
25-Sep-10
|
24,556,000.00
|
|
25-Sep-10
|
25-Oct-10
|
23,853,000.00
|
|
25-Oct-10
|
25-Nov-10
|
23,161,000.00
|
|
25-Nov-10
|
25-Dec-10
|
22,480,000.00
|
|
25-Dec-10
|
25-Jan-11
|
21,813,000.00
|
|
25-Jan-11
|
25-Feb-11
|
21,158,000.00
|
|
25-Feb-11
|
25-Mar-11
|
20,516,000.00
|
|
25-Mar-11
|
25-Apr-11
|
19,889,000.00
|
|
25-Apr-11
|
25-May-11
|
19,275,000.00
|
|
25-May-11
|
25-Jun-11
|
18,676,000.00
|
|
25-Jun-11
|
25-Jul-11
|
18,091,000.00
|
|
25-Jul-11
|
25-Aug-11
|
17,521,000.00
|
|
25-Aug-11
|
25-Sep-11
|
16,965,000.00
|
|
25-Sep-11
|
25-Oct-11
|
16,423,000.00
|
|
25-Oct-11
|
25-Nov-11
|
15,895,000.00
|
|
25-Nov-11
|
25-Dec-11
|
15,382,000.00
|
|
25-Dec-11
|
25-Jan-12
|
67,800,000.00
|
|
25-Jan-12
|
25-Feb-12
|
64,880,000.00
|
|
25-Feb-12
|
25-Mar-12
|
62,094,000.00
|
|
25-Mar-12
|
25-Apr-12
|
59,435,000.00
|
|
25-Apr-12
|
25-May-12
|
56,897,000.00
|
|
25-May-12
|
25-Jun-12
|
54,474,000.00
|
|
25-Jun-12
|
25-Jul-12
|
52,161,000.00
|
|
25-Jul-12
|
25-Aug-12
|
49,952,000.00
|
|
25-Aug-12
|
25-Sep-12
|
47,843,000.00
|
|
25-Sep-12
|
25-Oct-12
|
45,828,000.00
|
|
25-Oct-12
|
25-Nov-12
|
43,904,000.00
|
|
25-Nov-12
|
25-Dec-12
|
42,065,000.00
|
|
25-Dec-12
|
25-Jan-13
|
40,309,000.00
|
|
25-Jan-13
|
25-Feb-13
|
38,630,000.00
|
|
25-Feb-13
|
25-Mar-13
|
37,026,000.00
|
|
25-Mar-13
|
25-Apr-13
|
35,493,000.00
|
|
25-Apr-13
|
25-May-13
|
34,027,000.00
|
|
25-May-13
|
25-Jun-13
|
32,625,000.00
|
|
25-Jun-13
|
25-Jul-13
|
31,285,000.00
|
|
25-Jul-13
|
25-Aug-13
|
30,004,000.00
|
|
25-Aug-13
|
25-Sep-13
|
28,778,000.00
|
|
25-Sep-13
|
25-Oct-13
|
27,605,000.00
|
|
25-Oct-13
|
25-Nov-13
|
26,484,000.00
|
|
00-Xxx-00
|
Xxxxxxxxxxx
Date
|
25,410,000.00
|
The
dates
in the above schedule with the exception of the Effective Date will be subject
to adjustment in accordance with the Modified Following Business Day
Convention.
|
Seller
of the Cap:
|
UBS
AG
|
|
Buyer
of the Cap:
|
Counterparty
|
|
Calculation
Agent:
|
UBS
AG, unless otherwise specified in the schedule to the Master
Agreement
|
|
Business
Days:
|
New
York
|
|
Broker:
|
None
|
|
Fixed
Rate Payer:
|
Counterparty
|
|
Fixed
Amount:
|
USD
980,000.00
|
|
Fixed
Rate Payer Payment Date:
|
22
December 2006
|
|
Business
Day Convention:
|
Not
Applicable
|
Floating
Amounts
|
Floating
Rate Payer:
|
UBS
AG
|
||
|
Cap
Rate:
|
As
per the Cap Rate Schedule below
|
||
|
Cap
Rate Schedule:
|
|||
|
Period
From (and including)
|
Period
To (but excluding)
|
Cap
Rate
|
|
Effective
Date
|
25
November 2008
|
5.35%
|
|
25
November 2008
|
Termination
Date
|
5.55%
|
|
Floating
Amount:
|
To
be determined in accordance with the following formula:
Greater
of
(1)
Calculation Amount * Floating Rate Day Count Fraction * (Floating
Rate
Option - Cap Rate) and
|
|
(2)
0
|
|
|
Floating
Rate Option:
|
USD-LIBOR-BBA
|
|
Designated
Maturity:
|
One
Month
|
|
Spread:
|
None
|
|
Floating
Rate Day Count Fraction:
|
Actual/360
|
|
Floating
Rate Payer End Dates:
|
25
January, 25 February, 25 March, 25 April, 25 May, 25 June, 25 July,
25
August, 25 September, 25 October, 25 November and 25 December,
in each
year, from and including 25 February 2007, up to and including
the
Termination Date, subject to adjustment in accordance with the
Business
Day Convention specified immediately below.
|
|
Floating
Rate Payer Payment Dates:
|
Early
Payment shall be applicable. The Floating Rate Payer Payment Dates
shall
be two Business Days prior to each Floating Rate Payer Period End
Date.
|
|
Business
Day Convention:
|
Modified
Following
|
Relationship
Between Parties
Each
party will be deemed to represent to the other party on the date on which
it
enters into this Transaction that (in the absence of a written Agreement
between
the parties which expressly imposes affirmative obligations to the contrary
for
this Transaction):
(a)
Non-Reliance. Each party is acting for its own account, and has made its
own
independent decisions to enter into this Transaction and this such Transaction
is appropriate or proper for it based upon its own judgement and upon advice
from such advisers as it has deemed necessary. Each party is not relying
on any
communication (written or oral) of the other party as investment advice or
as a
recommendation to enter into this Transaction; it being understood that
information and explanation relating to the terms and conditions of this
Transaction shall not be considered investment advice or a recommendation
to
enter into this Transaction. No communication (written or oral) received
from
the other party shall be deemed to be an assurance or guarantee as to the
expected results of this Transaction.
(b)
Assessment and Understanding. Each party is capable of assessing the merits
of
and understands (on its own behalf or through independent professional advice),
and accepts, the terms, conditions and risks of this Transaction. Each party
is
also capable of assuming and assumes, the risks of this
Transaction.
(c)
Status of the Parties. Neither party is acting as a fiduciary for or as an
adviser to the other in respect of this Transaction.
References
in this clause to "a party" shall, in the case of UBS AG and where the context
so allows, include references to any affiliate of UBS AG.
|
Currency:
|
USD
|
|
Correspondent
Bank:
|
UBS
AG,
XXXXXXXX
BRANCH
|
|
Swift
Address:
|
XXXXXX00XXX
|
|
Favour:
|
UBS
AG LONDON
BRANCH
|
|
Swift
Address:
|
XXXXXX0XXXX
|
|
Account
No:
|
101-wa-140007-000
|
|
Further
Credit To:
|
|
|
Swift
Address:
|
|
|
Account
No:
|
Offices
| (a) |
The
office of UBS AG for the Interest Rate Cap Transaction is London;
and
|
| (b) |
The
office of Counterparty for the Interest Rate Cap Transaction is
New
York.
|
|
Contact
Names at UBS AG:
|
||
|
Payment
Inquiries
|
Elisa
Doctor
|
Email:
XX-XXXXXXXXXX-XXXXX@xxx.xxx
|
|
Pre
Value Payments:
|
Pre
Value Payment Investigations:
|
203.719-1110
|
|
Post
Value Payments:
|
Post
Value Payment Investigations:
|
203.719.1110
|
|
Confirmation
Queries:
|
Confirmation
Control:
|
203.719.3733
|
|
ISDA
Documentation:
|
Legal
|
203.719.4747
|
|
Swift:
|
UBSWGB2L
|
|
|
Fax:
|
(00)
00 0000 0000/2990
|
|
|
Address:
|
UBS
AG
|
|
|
000
Xxxxxxxxx Xxxxxx
Xxxxxx
XX0X 0XX
|
||
Please
confirm that the foregoing correctly sets forth the terms and conditions
of our
agreement by executing a copy of this Confirmation and returning it to us
or by
sending to us a letter or facsimile substantially similar to this letter,
which
letter or facsimile sets forth the material terms of the Transaction to which
this Confirmation relates and indicates your agreement to those terms or
by
sending to us a return letter or facsimile in the form attached.
This
Agreement may be executed in several counterparts, each of which shall be
deemed
an original but all of which together shall constitute one and the same
instrument.
For
and
on Behalf of
UBS
AG,
London Branch
|
By:
|
|
By:
|
||
|
Name:
|
Xxxxxxxxxxx
Xxxxxx
|
Name:
|
Xxxxxxxx
XxXxxxxx
|
|
|
Title:
|
Associate
Director
|
Title:
|
Associate
Director
|
Acknowledged
and Agreed by UBS Real Estate Securities, Inc. as of the date first written
above:
|
By:
|
|
|
Name
:
|
|
|
Title
:
|
|
UBS
AG
London Branch, 0 Xxxxxxxx Xxxxxx, Xxxxxx, XX0X 0XX
UBS
AG is
a member of the London Stock Exchange and is regulated in the UK by the
Financial Services Authority.
Representatives
of UBS Limited introduce trades to UBS AG via UBS Limited.
Attachment
2
|
Date:
|
28
December 2006
|
|
To:
|
Xxxxx
Fargo Bank, N.A., not individually, but solely as trust administrator
with
respect to the MASTR Asset Backed Securities Trust 2006-NC3, Mortgage
Pass
Through Certificates, Series 2006-NC3 (“Counterparty”)
|
|
Attention:
|
|
|
From:
|
UBS
AG, London Branch
(“UBS AG”)
|
|
Subject:
|
Interest
Rate Cap Transaction
|
|
UBS
AG Ref: 37536083
|
Dear
Sirs
The
purpose of this communication is to confirm the terms and conditions of the
Transaction entered into between us on the Trade Date specified below. This
Confirmation constitutes a “Confirmation” as referred to in the Master Agreement
or Agreement specified below.
The
definitions contained in the 2000 ISDA Definitions as published by the
International Swaps and Derivatives Association, Inc., are incorporated into
this Confirmation. In the event of any inconsistency between any of the
definitions listed above and this Confirmation, this Confirmation will
govern.
This
Confirmation supplements, forms part of, and is subject to, the ISDA Master
Agreement dated as of 28 December 2006 as amended and supplemented from time
to
time (the "Agreement"), between Counterparty and UBS AG. All provisions
contained in the Agreement govern this Confirmation except as expressly modified
below.
The
terms
of the particular Cap Transaction to which this Confirmation relates are
as
follows:
|
General
Terms
|
|
|
Trade
Date:
|
28
December 2006
|
|
Effective
Date
|
25
January 2007
|
|
Termination
Date:
|
25
December 2013,
subject to adjustment in accordance with the Modified Following
Business
Day Convention.
|
|
Calculation
Amount:
|
Initially
USD 3,948.00 amortizing as per Amortizing Schedule
below
|
Amortization
Schedule:
|
Period
From (and including)
|
Period
To (but excluding)
|
Calculation
Amount (USD)
|
|
Effective
Date
|
25-Feb-07
|
3,948.00
|
|
25-Feb-07
|
25-Mar-07
|
8,876.00
|
|
25-Mar-07
|
25-Apr-07
|
14,776.00
|
|
25-Apr-07
|
25-May-07
|
21,624.00
|
|
25-May-07
|
25-Jun-07
|
29,384.00
|
|
25-Jun-07
|
25-Jul-07
|
37,988.00
|
|
25-Jul-07
|
25-Aug-07
|
47,364.00
|
|
25-Aug-07
|
25-Sep-07
|
57,408.00
|
|
25-Sep-07
|
25-Oct-07
|
67,828.00
|
|
25-Oct-07
|
25-Nov-07
|
77,208.00
|
|
25-Nov-07
|
25-Dec-07
|
85,616.00
|
|
25-Dec-07
|
25-Jan-08
|
93,128.00
|
|
25-Jan-08
|
25-Feb-08
|
99,804.00
|
|
25-Feb-08
|
25-Mar-08
|
105,704.00
|
|
25-Mar-08
|
25-Apr-08
|
110,888.00
|
|
25-Apr-08
|
25-May-08
|
115,400.00
|
|
25-May-08
|
25-Jun-08
|
119,300.00
|
|
25-Jun-08
|
25-Jul-08
|
122,628.00
|
|
25-Jul-08
|
25-Aug-08
|
125,708.00
|
|
25-Aug-08
|
25-Sep-08
|
134,772.00
|
|
25-Sep-08
|
25-Oct-08
|
141,196.00
|
|
25-Oct-08
|
25-Nov-08
|
145,424.00
|
|
25-Nov-08
|
25-Dec-08
|
147,828.00
|
|
25-Dec-08
|
25-Jan-09
|
148,676.00
|
|
25-Jan-09
|
25-Feb-09
|
147,204.00
|
|
25-Feb-09
|
25-Mar-09
|
145,508.00
|
|
25-Mar-09
|
25-Apr-09
|
143,620.00
|
|
25-Apr-09
|
25-May-09
|
141,568.00
|
|
25-May-09
|
25-Jun-09
|
139,372.00
|
|
25-Jun-09
|
25-Jul-09
|
137,048.00
|
|
25-Jul-09
|
25-Aug-09
|
134,760.00
|
|
25-Aug-09
|
25-Sep-09
|
132,656.00
|
|
25-Sep-09
|
25-Oct-09
|
130,248.00
|
|
25-Oct-09
|
25-Nov-09
|
127,600.00
|
|
25-Nov-09
|
25-Dec-09
|
124,764.00
|
|
25-Dec-09
|
25-Jan-10
|
121,804.00
|
|
25-Jan-10
|
25-Feb-10
|
118,808.00
|
|
25-Feb-10
|
25-Mar-10
|
115,808.00
|
|
25-Mar-10
|
25-Apr-10
|
112,820.00
|
|
25-Apr-10
|
25-May-10
|
109,848.00
|
|
25-May-10
|
25-Jun-10
|
106,896.00
|
|
25-Jun-10
|
25-Jul-10
|
103,972.00
|
|
25-Jul-10
|
25-Aug-10
|
101,080.00
|
|
25-Aug-10
|
25-Sep-10
|
98,224.00
|
|
25-Sep-10
|
25-Oct-10
|
95,412.00
|
|
25-Oct-10
|
25-Nov-10
|
92,644.00
|
|
25-Nov-10
|
25-Dec-10
|
89,920.00
|
|
25-Dec-10
|
25-Jan-11
|
87,252.00
|
|
25-Jan-11
|
25-Feb-11
|
84,632.00
|
|
25-Feb-11
|
25-Mar-11
|
82,064.00
|
|
25-Mar-11
|
25-Apr-11
|
79,556.00
|
|
25-Apr-11
|
25-May-11
|
77,100.00
|
|
25-May-11
|
25-Jun-11
|
74,704.00
|
|
25-Jun-11
|
25-Jul-11
|
72,364.00
|
|
25-Jul-11
|
25-Aug-11
|
70,084.00
|
|
25-Aug-11
|
25-Sep-11
|
67,860.00
|
|
25-Sep-11
|
25-Oct-11
|
65,692.00
|
|
25-Oct-11
|
25-Nov-11
|
63,580.00
|
|
25-Nov-11
|
25-Dec-11
|
61,528.00
|
|
25-Dec-11
|
25-Jan-12
|
271,200.00
|
|
25-Jan-12
|
25-Feb-12
|
259,520.00
|
|
25-Feb-12
|
25-Mar-12
|
248,376.00
|
|
25-Mar-12
|
25-Apr-12
|
237,740.00
|
|
25-Apr-12
|
25-May-12
|
227,588.00
|
|
25-May-12
|
25-Jun-12
|
217,896.00
|
|
25-Jun-12
|
25-Jul-12
|
208,644.00
|
|
25-Jul-12
|
25-Aug-12
|
199,808.00
|
|
25-Aug-12
|
25-Sep-12
|
191,372.00
|
|
25-Sep-12
|
25-Oct-12
|
183,312.00
|
|
25-Oct-12
|
25-Nov-12
|
175,616.00
|
|
25-Nov-12
|
25-Dec-12
|
168,260.00
|
|
25-Dec-12
|
25-Jan-13
|
161,236.00
|
|
25-Jan-13
|
25-Feb-13
|
154,520.00
|
|
25-Feb-13
|
25-Mar-13
|
148,104.00
|
|
25-Mar-13
|
25-Apr-13
|
141,972.00
|
|
25-Apr-13
|
25-May-13
|
136,108.00
|
|
25-May-13
|
25-Jun-13
|
130,500.00
|
|
25-Jun-13
|
25-Jul-13
|
125,140.00
|
|
25-Jul-13
|
25-Aug-13
|
120,016.00
|
|
25-Aug-13
|
25-Sep-13
|
115,112.00
|
|
25-Sep-13
|
25-Oct-13
|
110,420.00
|
|
25-Oct-13
|
25-Nov-13
|
105,936.00
|
|
00-Xxx-00
|
Xxxxxxxxxxx
Date
|
101,640.00
|
The
dates
in the above schedule with the exception of the Effective Date will be subject
to adjustment in accordance with the Modified Following Business Day
Convention.
|
Seller
of the Cap:
|
UBS
AG
|
|
Buyer
of the Cap:
|
Counterparty
|
|
Calculation
Agent:
|
UBS
AG, unless otherwise specified in the schedule to the Master
Agreement
|
|
Business
Days:
|
New
York
|
|
Broker:
|
None
|
|
Fixed
Amounts
|
|
|
Fixed
Rate Payer:
|
Counterparty
|
|
Fixed
Amount:
|
Not
Applicable
|
|
Fixed
Rate Payer Payment Date:
|
Not
Applicable
|
|
Business
Day Convention:
|
Not
Applicable
|
Floating
Amounts
|
Floating
Rate Payer:
|
UBS
AG
|
|
Cap
Rate:
|
As
per the Cap Rate Schedule below
|
Cap
Rate Schedule:
|
Period
From (and including)
|
Period
To (but excluding)
|
Cap
Rate
|
|
Effective
Date
|
25
November 2008
|
5.35%
|
|
25
November 2008
|
Termination
Date
|
5.55%
|
|
Floating
Amount:
|
To
be determined in accordance with the following formula:
Greater
of
(1)
250 * Calculation Amount * Floating Rate Day Count Fraction * (Floating
Rate Option - Cap Rate) and
|
||
|
(2)
0
|
|||
|
Floating
Rate Option:
|
USD-LIBOR-BBA
|
||
|
Designated
Maturity:
|
One
Month
|
||
|
Spread:
|
None
|
||
|
Floating
Rate Day Count Fraction:
|
Actual/360
|
||
|
Floating
Rate Payer End Dates:
|
25
January, 25 February, 25 March, 25 April, 25 May, 25 June, 25 July,
25
August, 25 September, 25 October, 25 November and 25 December,
in each
year, from and including 25 February 2007, up to and including
the
Termination Date, subject to adjustment in accordance with the
Business
Day Convention specified immediately below.
|
||
|
Floating
Rate Payer Payment Dates:
|
Early
Payment shall be applicable. The Floating Rate Payer Payment Dates
shall
be two Business Days prior to each Floating Rate Payer Period End
Date.
|
||
|
Business
Day Convention:
|
Modified
Following
|
||
Relationship
Between Parties
Each
party will be deemed to represent to the other party on the date on which
it
enters into this Transaction that (in the absence of a written Agreement
between
the parties which expressly imposes affirmative obligations to the contrary
for
this Transaction):
(a)
Non-Reliance. Each party is acting for its own account, and has made its
own
independent decisions to enter into this Transaction and this such Transaction
is appropriate or proper for it based upon its own judgement and upon advice
from such advisers as it has deemed necessary. Each party is not relying
on any
communication (written or oral) of the other party as investment advice or
as a
recommendation to enter into this Transaction; it being understood that
information and explanation relating to the terms and conditions of this
Transaction shall not be considered investment advice or a recommendation
to
enter into this Transaction. No communication (written or oral) received
from
the other party shall be deemed to be an assurance or guarantee as to the
expected results of this Transaction.
(b)
Assessment and Understanding. Each party is capable of assessing the merits
of
and understands (on its own behalf or through independent professional advice),
and accepts, the terms, conditions and risks of this Transaction. Each party
is
also capable of assuming and assumes, the risks of this
Transaction.
(c)
Status of the Parties. Neither party is acting as a fiduciary for or as an
adviser to the other in respect of this Transaction.
(d)
Eligible
Contract Participant.
Each
party constitutes an “eligible contract participant” as such term is defined in
Section 1(a)12 of the Commodity Exchange Act, as amended.
Fully-Paid
Transactions
Notwithstanding the terms of Sections 5 and 6 of the ISDA Master Agreement,
(a)
the occurrence of an event described in Section 5(a) of the Form Master
Agreement with respect to Counterparty shall not constitute an Event of Default
or Potential Event of Default with respect to Counterparty as the Defaulting
Party and (b) UBS AG shall be entitled to designate an Early Termination
Date
pursuant to Section 6 of the ISDA Master Agreement only as a result of a
Termination Event set forth in either Section 5(b)(i) or Section 5(b)(ii)
of the
ISDA Master Agreement with respect to UBS AG as the Affected Party or Section
5(b)(iii) of the ISDA Master Agreement with respect to UBS AG as the Burdened
Party.
References
in this clause to "a party" shall, in the case of UBS AG and where the context
so allows, include references to any affiliate of UBS AG.
|
Account
Details for UBS AG:
|
||
|
Currency:
|
USD
|
|
|
Correspondent
Bank:
|
UBS
AG,
XXXXXXXX
BRANCH
|
|
|
Swift
Address:
|
XXXXXX00XXX
|
|
|
Favour:
|
UBS
AG LONDON
BRANCH
|
|
|
Swift
Address:
|
XXXXXX0XXXX
|
|
|
Account
No:
|
101-wa-140007-000
|
|
|
Further
Credit To:
|
|
|
|
Swift
Address:
|
||
|
Account
No:
|
||
Offices
| (a) |
The
office of UBS AG for the Interest Rate Cap Transaction is London;
and
|
| (b) |
The
office of Counterparty for the Interest Rate Cap Transaction
is New
York
|
|
Contact
Names at UBS AG:
|
||
|
Payment
Inquiries
|
Elisa
Doctor
|
Email:
XX-XXXXXXXXXX-XXXXX@xxx.xxx
|
|
Pre
Value Payments:
|
Pre
Value Payment Investigations:
|
203.719-1110
|
|
Post
Value Payments:
|
Post
Value Payment Investigations:
|
203.719.1110
|
|
Confirmation
Queries:
|
Confirmation
Control:
|
203.719.3733
|
|
ISDA
Documentation:
|
Legal
|
203.719.4747
|
|
Swift:
|
UBSWGB2L
|
|
|
Fax:
|
(00)
00 0000 0000/2990
|
|
|
Address:
|
UBS
AG
|
|
|
000
Xxxxxxxxx Xxxxxx
Xxxxxx
XX0X 0XX
|
||
Contact
Info:
Xxxxx
Fargo Bank, N.A.
0000
Xxx
Xxxxxxxxx Xxxx
Xxxxxxxx,
XX 00000-0000
Attn:
Client Manager MABS 2006-NC3
(p)
410.884.2000
(f)
410.715.2380
Wiring
Instructions:
XXXXX
XXXXX XXXX, XX
XXX#
000000000
FOR
CREDIT TO: CORPORATE TRUST CLEARING
ACCT:
0000000000
FFC
TO: Cap Account, Account # 00000000
Please
confirm that the foregoing correctly sets forth the terms and conditions
of our
agreement by executing a copy of this Confirmation and returning it to us
or by
sending to us a letter or facsimile substantially similar to this letter,
which
letter or facsimile sets forth the material terms of the Transaction to which
this Confirmation relates and indicates your agreement to those terms or
by
sending to us a return letter or facsimile in the form attached.
This
Agreement may be executed in several counterparts, each of which shall be
deemed
an original but all of which together shall constitute one and the same
instrument.
Yours
Faithfully
For
and
on Behalf of
UBS
AG,
London Branch
|
By:
|
|
By:
|
||
|
Name:
|
Xxxxxxxxxxx
Xxxxxx
|
Name:
|
Xxxxxxxx
XxXxxxxx
|
|
|
Title:
|
Associate
Director
|
Title:
|
Associate
Director
|
Acknowledged
and Agreed by Xxxxx Fargo Bank, N.A., not individually, but solely as trust
administrator with respect to the MASTR Asset Backed Securities Trust 2006-NC3,
Mortgage Pass Through Certificates, Series 2006-NC3 as of the date first
written
above:
|
By:
|
|
|
Name
:
|
|
|
Title
:
|
|
UBS
AG
London Branch, 0 Xxxxxxxx Xxxxxx, Xxxxxx, XX0X 0XX
UBS
AG is
a member of the London Stock Exchange and is regulated in the UK by the
Financial Services Authority.
Representatives
of UBS Limited introduce trades to UBS AG via UBS Limited.
Execution
Copy
(Multicurrency-Cross
Border)
Cap
Schedule
SCHEDULE
to
the
Master
Agreement
dated
as
of December 28, 2006
between
UBS
AG (“Party
A”),
a
banking
corporation organized under the laws of Switzerland
and
XXXXX
FARGO BANK, NATIONAL ASSOCIATION,
not
individually, but solely as trust administrator with respect to the MASTR
Asset
Backed Securities Trust 2006-NC3, Mortgage Pass Through Certificates, Series
2006-NC3 (“Party B”)
Part
1.
Termination
Provisions
In
this
Agreement:
|
(a)
|
“Specified
Entity” means
in relation to Party A for the purpose
of:-
|
|
Section
5(a)(v),
|
Not
applicable.
|
|
|
Section
5(a)(vi),
|
Not
applicable.
|
|
|
Section
5(a)(vii),
|
Not
applicable.
|
|
|
Section
5(b)(iv),
|
Not
applicable.
|
and
in
relation to Party B for the purpose of:
|
Section
5(a)(v),
|
Not
applicable.
|
|
|
Section
5(a)(vi),
|
Not
applicable.
|
|
|
Section
5(a)(vii),
|
Not
applicable.
|
|
|
Section
5(b)(iv),
|
Not
applicable.
|
|
(b)
|
“Specified
Transaction” will
have the meaning specified in Section 14 of this Agreement.
|
|
(c)
|
The
“Failure
to Pay or Deliver”
provisions of Section 5(a)(i) of this Agreement will apply to Party
A and
will apply to Party B.
|
|
(d)
|
The
“Breach
of Agreement”
provisions of Section 5(a)(ii) of this Agreement will apply to
Party A and
will not apply to Party B.
|
|
(e)
|
The
“Credit
Support Default”
provisions of Section 5(a)(iii) of this Agreement will apply to
Party A
and will not apply to Party B except that Section 5(a)(iii)(1)
of this
Agreement will apply to Party B only with respect to the Transfer
of any
Return Amount required to be made by Party B pursuant to the Credit
Support Annex.
|
|
(f)
|
The
“Misrepresentation”
provisions of Section 5(a)(iv) of this Agreement will not apply
to either
Party A or Party B.
|
|
(g)
|
The
“Default
under Specified Transaction”
provisions of Section 5(a)(v) of this Agreement will apply to Party
A and
will not apply to Party B.
|
|
(h)
|
The
“Cross
Default” provisions
of Section 5(a)(vi) of this Agreement, as modified below, will
apply to
Party A and will not apply to Party B. Section 5(a)(vi) of this
Agreement
is hereby amended by the addition of the following at the end
thereof:
|
|
“provided,
however, that notwithstanding the foregoing, an Event of Default
shall not
occur under either (1) or (2) above if, as demonstrated to the
reasonable
satisfaction of the other party, (a) the event or condition referred
to in
(1) or the failure to pay referred to in (2) is a failure to pay
caused by
an error or omission of an administrative or operational nature;
(b) funds
were available to such party to enable it to make the relevant
payment
when due; and (c) such relevant payment is made within three Local
Business Days following receipt of written notice from an interested
party
of such failure to pay.”
|
|
For
purposes of this provision:
|
|
“Specified
Indebtedness”
will have the meaning specified in Section 14 of this
Agreement.
|
|
“Threshold
Amount”
means with respect to Party A, an amount equal to three percent
(3%) of
the shareholders’ equity (howsoever described) of Party A as shown on the
most recent annual audited financial statements of Party
A.
|
|
(i)
|
The
“Credit
Event Upon Merger”
provisions of Section 5(b)(iv) of this Agreement will not apply
to either
Party A or Party B.
|
|
(j)
|
The
“Automatic
Early Termination”
provisions of Section 6(a) of this Agreement will not apply to
Party A and
will not apply to Party B; provided that, if the Event of Default
specified in Section 5(a)(vii) (except for Section 5(a)(vii)(2))
is
governed by a system of law that does not permit termination to
take place
after the occurrence of the relevant Event of Default with respect
to a
party, then the Automatic Early Termination provision of Section
6(a) will
apply to such party.
|
|
(k)
|
The
“Bankruptcy”
provisions of Section 5(a)(vii) of this Agreement will apply to
both Party
A and Party B; provided, however, that with respect to Party B
the
following modifications shall apply: (i) clause (2) shall not apply;
(ii)
clause (4) shall exclude proceedings or petitions instituted or
presented
by Party A or any of Party A’s Affiliates; (iii) the words “seeks or”
shall be deleted from clause (6); (iv) clause (6) shall not apply
in
connection with any appointment that is contemplated by the [Transaction
Documents] (as such term is defined in the Indenture); (v) clauses
(7) and
(9) shall not apply; and (vi) clause (8) shall apply only to the
extent
that any of the events specified in clauses (1) through (7) are
applicable.
|
(l)
Payments
on Early Termination.
For the
purpose of Section 6(e) of this Agreement:
(i) Market
Quotation will apply.
(ii) The
Second Method will apply.
|
(m)
|
Calculations.
Notwithstanding Section 6 of this Agreement, so long as Party A
is (A) the
Affected Party in respect of an Additional Termination Event, Illegality,
Tax Event or a Tax Event Upon Merger or (B) the Defaulting Party
in
respect of any Event of Default, paragraphs (i) to (vi) below shall
apply:
|
(i) The
definition of “Market Quotation” shall be deleted in its entirety and replaced
with the following:
“Market
Quotation”
means,
with respect to one or more Terminated Transactions, a Firm Offer which is
(1)
made by a Reference Market-maker that is an Eligible Replacement, (2) for
an
amount that would be paid to Party B (expressed as a negative number) or
by
Party B (expressed as a positive number) in consideration of an agreement
between Party B and such Reference Market-maker to enter into a transaction
(the
“Replacement
Transaction”)
that
would have the effect of preserving for such party the economic equivalent
of
any payment or delivery (whether the underlying obligation was absolute or
contingent and assuming the satisfaction of each applicable condition precedent)
by the parties under Section 2(a)(i) in respect of such Terminated Transactions
or group of Terminated Transactions that would, but for the occurrence of
the
relevant Early Termination Date, have been required after that Date, (3)
made on
the basis that Unpaid Amounts in respect of the Terminated Transaction or
group
of Transactions are to be excluded but, without limitation, any payment or
delivery that would, but for the relevant Early Termination Date, have been
required (assuming satisfaction of each applicable condition precedent) after
that Early Termination Date is to be included and (4) made in respect of
a
Replacement Transaction with terms substantially the same as those of this
Agreement (save for the exclusion of provisions relating to Transactions
that
are not Terminated Transactions).”
(ii) The
definition of “Settlement Amount” shall be deleted in its entirety and replaced
with the following:
“Settlement
Amount”
means,
with respect to any Early Termination Date, an amount (as determined by Party
B)
equal to the Termination Currency Equivalent of the amount (whether positive
or
negative) of any Market Quotation for the relevant Terminated Transaction
or
group of Terminated Transactions that is accepted by Party B so as to become
legally binding, Provided that:
(1) If,
no
Automatic Early Termination has occurred and, on the Early Termination Date,
(x)
no Market Quotation for the relevant Terminated Transaction or group of
Terminated Transactions has been accepted by Party B so as to become legally
binding and (y) one or more Market Quotations have been made and remain capable
of becoming legally binding upon acceptance, the Settlement Amount shall
equal
the Termination Currency Equivalent of the amount (whether positive or negative)
of the lowest of such Market Quotations; and
(2) If
no
Automatic Early Termination has occurred and, on the Early Termination Date,
(x)
no Market Quotation for the relevant Terminated Transaction or group of
Terminated Transactions is accepted by Party B so as to become legally binding
and (y) no Market Quotations have been made and remain capable of becoming
legally binding upon acceptance, the Settlement Amount shall equal Party
B’s
Loss (whether positive or negative and without reference to any Unpaid Amounts)
for the relevant Terminated Transaction or group of Terminated
Transactions.
(3) If
an
Automatic Early Termination has occurred and, on the Early Termination Date,
no
Market Quotation for the relevant Terminated Transaction or group of Terminated
Transactions is accepted by Party B so as to become legally binding, the
Settlement Amount shall equal Party B’s Loss (whether positive or negative and
without reference to any Unpaid Amounts) for the relevant Terminated Transaction
or group of Terminated Transactions.
| (iii) |
For
the purpose of paragraph (4) of the definition of Market Quotation,
Party
B shall determine in its sole discretion, acting in a commercially
reasonable manner, whether a Firm Offer is made in respect of a
Replacement Transaction with commercial terms substantially the
same as
those of this Agreement (save for the exclusion of provisions relating
to
Transactions that are not Terminated
Transactions).
|
| (iv) |
At
any time on or before the Early Termination Date at which two or
more
Market Quotations remain capable of becoming legally binding upon
acceptance, Party B shall be entitled to accept only the lowest
of such
Market Quotations.
|
|
(v)
|
If
Party B requests Party A in writing to obtain Market Quotations,
Party A
shall use its reasonable efforts to do so before the Early Termination
Date.
|
|
(vi)
|
If
the Settlement Amount is a negative number, Section 6(e)(i)(3)
of this
Agreement shall be deleted in its entirety and replaced with the
following:
|
“Second
Method and Market Quotation.
If
Second Method and Market Quotation apply, (1) Party B shall pay to Party
A an
amount equal to the absolute value of the Settlement Amount in respect of
the
Terminated Transactions, (2) Party B shall pay to Party A the Termination
Currency Equivalent of the Unpaid Amounts owing to Party A and (3) Party
A shall
pay to Party B the Termination Currency Equivalent of the Unpaid Amounts
owing
to Party B, provided that, (i) the amounts payable under (2) and (3) shall
be
subject to netting in accordance with Section 2(c) of this Agreement and
(ii)
notwithstanding any other provision of this Agreement, any amount payable
by
Party A under (3) shall not be netted-off against any amount payable by Party
B
under (1).”
(n)
“Termination
Currency”
means
United States Dollars (“USD”).
(o)
Additional
Termination Event
will
apply to Party A and Party B as set forth below:
| (i) |
Each
of the following events shall be an Additional Termination Event
for which
Party B shall be the sole Affected Party and all Transactions shall
be
Affected Transactions:
|
(A)
The
trust created pursuant to the Pooling and Servicing Agreement (as defined
below)
is unable to pay, or fails or admits in writing its inability, to pay, on
any
Distribution Date, any Uncertificated Interest with respect to the Class
A
Certificates, to the extent required pursuant to the terms of the Pooling
and
Servicing Agreement to be paid to the Class A Certificates on such Distribution
Date;
(B)
The
Pooling and Servicing Agreement dated as of December 1, 2006 among Mortgage
Asset Securitization Transactions, Inc. as depositor, Xxxxx Fargo Bank, National
Association as master servicer and trust administrator, Barclays Capital
Real
Estate Inc. d/b/a HomeEq Servicing as servicer and U.S. Bank National
Association as trustee (the “Pooling and Servicing Agreement”) is amended or
modified without the prior written consent of Party A where such consent
is
required under the Pooling and Servicing Agreement (such consent not to be
unreasonably withheld, conditioned or delayed), if such amendment or
modification adversely affects, in any material respect, the interests of
Party
A; and
(C)
Optional
Termination of Securitization. An
Additional Termination Event shall occur upon the notice to Certificateholders
of an Optional Termination becoming unrescindable in accordance with Article
[IX] of the Pooling and Servicing Agreement. Party B shall be the sole Affected
Party with respect to this Additional Termination Event and the cap transactions
with reference numbers 37536063 and 37536083 shall be the sole Affected
Transactions; provided, however, that notwithstanding anything to the contrary
in Section 6(b)(iv), only Party B may designate an Early Termination Date
in
respect of this Additional Termination Event.
|
(ii)
|
Each
of the following events shall be an Additional Termination Event
for which
Party A shall be the sole Affected Party and all Transactions shall
be
Affected Transactions:
|
(A) If
(x)
within 30 Local Business Days after the date on which the Moody’s First Trigger
Event applies or (y) within 30 calendar days after the date on which the
S&P
First Trigger Event applies,
Party A fails to comply with or perform any obligation to be complied with
or
performed under the CSA (including any obligation to Transfer Eligible
Collateral thereunder).
(B) On
any
Local Business Day that is (1) at least 30 Local Business Days after the
occurrence of (x) a Moody’s Second Trigger Event (which is continuing) or that
is (2) at least 10 Local Business Days after the occurrence of (y) an S&P
Second Trigger Event (which is continuing), and in the case of both (x) and
(y),
a Firm Offer that remains capable of being accepted is either (i) made by
an
Eligible Replacement that satisfies the
Moody’s Ratings Requirement (Second Trigger)
and
S&P Ratings Requirement (First Trigger) to accept transfer of Party A’s
obligations hereunder or (ii) made by a guarantor that satisfies the Moody’s
Ratings Requirement (Second Trigger) and S&P Ratings Requirement (First
Trigger) to provide an Eligible Guarantee in respect of Party A’s present and
future payment and delivery obligations under this Agreement and the CSA
and
such a Firm Offer is not accepted by Party A within one (1) Local Business
Day
of being made. During any period prior to the acceptance of such offer, Party
A
will continue to comply with its obligations under the CSA.
(C) If,
upon
the occurrence of a Swap Disclosure Event (as defined below in Part 5(aa)
of
this Schedule) Party A has not, within the lesser of 15 calendar days and
10
Local Business Days (after giving effect to any grace period applicable to
the
relevant filing) after such Swap Disclosure Event, complied with any of the
provisions set forth in Part 5(aa) below.
For
the
purposes hereof:
“Cap
Rating Agency” means each of S&P and Moody’s, to the extent that each such
rating agency is then providing a rating for any of the MASTR Asset Backed
Securities Trust 2006-NC3, Mortgage Pass Through Certificates, Series 2006-NC3
(the “Certificates”) or any notes backed by the Certificates (the “Notes”).
“Eligible
Guarantee” means an unconditional and irrevocable guarantee that is provided by
a guarantor as principal debtor rather than surety and is directly enforceable
by Party B, where (A) either (x) a law firm has given a legal opinion confirming
that none of the guarantor’s payments to Party B under such guarantee will be
subject to withholding for Tax or (y) such guarantee provides that, in the
event
that any of such guarantor’s payments to Party B are subject to withholding for
Tax, such guarantor is required to pay such additional amount as is necessary
to
ensure that the net amount actually received by Party B (free and clear of
any
withholding tax) will equal the full amount Party B would have received had
no
such withholding been required and (B) the Rating Agency Condition with respect
to S&P is satisfied.
“Eligible
Replacement” means an entity satisfying (or whose present and future payment and
delivery obligations owing to Party B are guaranteed pursuant to an Eligible
Guarantee provided by a guarantor satisfying) the Moody’s
Ratings Requirement (Second Trigger) and S&P Ratings Requirement (First
Trigger).
Where
the Eligible Replacement will enter into documentation substantively similar
to
this Agreement, Party A must provide written notice to each Cap Rating Agency
of
such transfer and such transfer must be in connection with the assignment
and
assumption of this Agreement without modification of its terms, other than
party
names, dates relevant to the effective date of such transfer, tax
representations and any other representations regarding the status of the
substitute counterparty. In all other cases, the Rating Agency Condition
must be
satisfied with respect to S&P.
“Firm
Offer” means an offer which, when made, was capable of becoming legally binding
upon acceptance by the offeree.
“Long
Term Rating” means the long-term unsecured and unsubordinated debt or
counterparty rating assigned to a party by a Cap Rating Agency.
“Moody’s”
shall mean Xxxxx’x Investors Service, Inc., or any successor
thereto.
“Moody’s
First Trigger Event” means no Relevant Entity satisfies the Moody’s Ratings
Requirement (First Trigger).
“Moody’s
Ratings Requirement (First Trigger)” means, with respect to a party:
(x)
such
party’s Short Term Rating from Xxxxx’x is at least “P-1” and its Long Term
Rating from Xxxxx’x is at least “A2”; or (y) if such party does
not have a Short Term Rating from Moody’s,
its
Long Term Rating from Xxxxx’x is at least “A1.
“Moody’s
Ratings Requirement (Second Trigger)” means, (x) with respect to a Relevant
Entity, its Short
Term Rating from Xxxxx’x is at least “P-2” and its Long Term Rating from Xxxxx’x
is at least “A3” or (y) if such Relevant Entity does
not have a Short Term Rating,
its
Long Term Rating from Xxxxx’x is at least “A3”.
“Moody’s
Second Trigger Event” means no
Relevant Entity satisfies the Moody’s Ratings
Requirement (Second Trigger).
“Relevant
Entity” means Party A and any guarantor under an Eligible Guarantee in respect
of all of Party A’s present and future obligations hereunder.
“S&P”
means Standard & Poor’s Rating Services, a division of The XxXxxx-Xxxx
Companies, Inc., or any successor thereto.
“S&P
First Trigger Event” means no Relevant Entity satisfies the S&P Ratings
Requirement (First Trigger).
“S&P
Ratings Requirement (First Trigger)” means: (x) the Relevant Entity’s Short Term
Rating from S&P is at least “A-1” or (y) if such Relevant Entity does not
have a Short Term Rating from S&P, its Long Term Rating from S&P is at
least “A+”.
“S&P
Ratings Requirement (Second Trigger)” means the Relevant Entity’s Long Term
Rating is at least “BBB-”.
“S&P
Second Trigger Event”
means
that no Relevant Entity’s Long Term Rating satisfies the S&P Ratings
Requirement (Second Trigger).
“Second
Trigger Collateralization Level” applies at any time a Moody’s Second Trigger
Event has occurred and has been continuing for thirty (30) or more Local
Business Days. For the avoidance of doubt, the Second Trigger Collateralization
Level shall cease to apply at any time a Relevant Entity satisfies the Moody’s
Ratings Requirement (Second Trigger).
“Short
Term Rating” means the short-term unsecured and unsubordinated debt rating
assigned to a party by a
Cap
Rating Agency.
(p) Second
Trigger Event Additional Obligations. For
so long as Party A does not satisfy the Moody’s Ratings Requirement (Second
Trigger) or the S&P Ratings Requirement (Second Trigger), Party
A
shall use commercially reasonable efforts to obtain a Firm
Offer to, as soon as is reasonably practicable, either (1) transfer
its obligations under this Agreement to an Eligible Replacement that satisfies
the
Moody’s Ratings Requirement (Second Trigger) and the S&P Ratings Requirement
(First Trigger) or (2), to the extent consistent with its then-current internal
policies and practices, guaranty its present and future payment and delivery
obligations under this Agreement and the CSA through an Eligible Guarantee
from
a guarantor that satisfies the Moody’s Ratings Requirement (Second Trigger) and
the S&P Ratings Requirement (First Trigger).
Part
2.
Tax
Representations
|
(a)
|
Payer
Tax Representations.
For the purpose of Section 3(e) of this Agreement, Party A and
Party B
will each make the following representation:
None.
|
|
(b)
|
Payee
Representations.
|
|
(i)
|
For
the purpose of Section 3(f) of this Agreement, Party A makes the
following
representations to Party B: None.
|
|
(ii)
|
For
the purpose of Section 3(f) of this Agreement, Party B makes the
following
representations to Party A: None
|
Part
3.
Agreement
to Deliver Documents.
For
the purpose of Sections 4(a)(i) and (ii) of this Agreement, each party agrees
to
deliver the following documents, as applicable:
(a) Tax
forms, documents or certificates to be delivered are:
|
Party
required to
deliver
document
|
Form/Document/Certificate
|
Date
by which to be delivered
|
||
|
Party
A
|
An
original properly completed and executed United States Internal
Revenue
Service Form W-8BEN (or any successor thereto), as appropriate,
with
respect to any payments received or to be received by Party A that
eliminates U.S. federal withholding and backup withholding Tax
on payments
to Party A under this Agreement.
|
(i)
Upon execution and delivery of this Agreement, with such form to
be
updated at the beginning of each succeeding three calendar year
period
beginning after execution of this Agreement, or as otherwise required
under then applicable U.S. Treasury Regulations; (ii) promptly
upon
reasonable demand by Party B; and (iii) promptly upon learning
that any
information on any previously delivered form (or any successor
thereto)
has become obsolete or incorrect.
|
||
|
Party
B
|
(i)
Upon execution of this Agreement, an original properly completed
and
executed United States Internal Revenue Service Form W-9 (or any
successor
thereto) with respect to any payments received or to be received
by the
initial beneficial owner of payments to Party B under this Agreement,
and
(ii) thereafter, the appropriate tax certification from (i.e.,
IRS Form
W-9 or IRS Form X-0XXX, X-0XXX, X-0XXX or W-8ECI, as applicable
(or any
successor thereto) with respect to any payments received or to
be received
by the beneficial owner of payments to Party B under this Agreement
from
time to time.
|
(i)
Prior to the First Floating Rate Payer Payment Date, (ii) promptly
upon
reasonable demand by Party A, (iii) promptly upon learning that
any such
form previously provided by Party B has become obsolete or incorrect
and
(iv) in the case of a tax certification form other than a Form
W-9, before
December 31 of each third succeeding calendar
year.
|
|
(b)
|
Other
documents to be delivered are:-
|
|
Party
required to deliver document
|
Form/Document/
Certificate
|
Date
by which
to
be Delivered
|
Covered
by
Section
3(d)
|
|||
|
Party
A
|
Evidence
of authority of signatories to this Agreement
|
Upon
execution of this Agreement
|
Yes
|
|||
|
Party
B
|
Certified
copy of the Board of Directors resolution (or equivalent authorizing
documentation) which sets forth the authority of each signatory
to the
Agreement signing on its behalf and the authority of such party
to enter
into Transactions contemplated and performance of its obligations
hereunder
|
Upon
execution of this Agreement
|
Yes
|
|||
|
Party
A
|
Any
publicly available annual audited financial statements prepared
in
accordance with generally accepted accounting principles in the
country in
which Party A is organized
|
As
such statements are made publicly available on Party A’s website
(xxxx://xxx.xxx.xxx/0/x/xxxxxxxxx/xxxxxxxxxxxxxxx.xxxx)
or on the U.S. Securities Exchange Commission XXXXX information
retrieval
system
|
Yes
|
|||
|
Party
A
|
Any
publicly available interim unaudited financial statements prepared
in
accordance with generally accepted accounting principles in the
country in
which Party A is organized
|
As
such statements are made publicly available on Party A’s website
(xxxx://xxx.xxx.xxx/0/x/xxxxxxxxx/xxxxxxxxx_xxxxxxxxx.xxxx
or
on the U.S. Securities Exchange Commission XXXXX information retrieval
system
|
Yes
|
|||
|
Party
B
|
A
duly executed copy of the Pooling and Servicing Agreement
(“PSA”)
|
Promptly
upon being finalized
|
No
|
|||
|
Party
B
|
(1)
Monthly statements to certificateholders pursuant to Section 4.02
of the
PSA and (2) Notice of any amendment to the PSA pursuant to Section
11.01
that would adversely
affect in any material respect the interests of Party A.
|
(i)
Available monthly via Party B’s website at: xxx.xxxxxxx.xxx
(2)At
the time specified for such notice to parties in the applicable
Section of
the PSA
|
No
|
|||
|
Party
A and Party B
|
Legal
opinions reasonably satisfactory in form and substance to each
party
|
Promptly
following execution of this Agreement
|
No
|
Part
4.
Miscellaneous.
(a) Addresses
for Notices.
For the purpose of Section 12(a):-
Address
for notices or communications to Party A (for all purposes):-
|
Address:
|
UBS
AG, Stamford Branch
|
|
|
000
Xxxxxxxxxx Xxxxxxxxx
|
||
|
Xxxxxxxx,
XX 00000
|
||
|
Attention:
|
Legal
Affairs
|
|
|
Facsimile
No.:
|
(000)
000-0000
|
Address
for notices or communications to Party B (for all purposes):
|
Address:
|
0000
Xxx Xxxxxxxxx Xxxx
|
|
|
Xxxxxxxx,
Xxxxxxxx 00000-0000
|
||
|
Attention:
|
Client
Manager - MABS NC3
|
|
|
Tel
No.:
|
000-000-0000
|
|
|
Facsimile
No.:
|
000-000-0000
|
|
(b)
|
Process
Agent.
For the purpose of Section 13(c):-
|
Party
A appoints as its Process Agent, [Please advise].
Party
B appoints as its Process Agent, Not applicable.
|
(c)
|
Offices.
The provisions of Section 10(a) will apply to this
Agreement.
|
|
(d)
|
Multibranch
Party.
For the purpose of Section 10(c) of this
Agreement:-
|
Party
A is a Multibranch Party and may act through its branches in any of the
following territories or countries: Australia, England and Wales, Hong Kong,
Singapore, Switzerland and United States of America.
Party
B is not a Multibranch Party.
|
(e)
|
Calculation
Agent.
The Calculation Agent is Party A, unless otherwise specified in
a
Confirmation in relation to the relevant Transaction; provided,
however,
that if Party A is the Defaulting Party, Party B shall select a
Reference
Market Maker to act as Calculation Agent, the cost of which shall
be borne
by Party A. All calculations by the Calculation Agent shall be
made in
good faith and through the exercise of its commercially reasonable
judgment.
|
|
(f)
|
Credit
Support Document.
Details of any Credit Support
Document:-
|
(i) The
ISDA Credit Support Annex entered into between Party A and Party B and dated
as
of the date hereof (the “CSA”) shall be a Credit Support Document with respect
to Party A and Party B.
(ii) Any
Eligible Guarantee provided by a guarantor in support of Party A’s obligations
hereunder shall be a Credit Support Document with respect to Party
A.
|
(g)
|
Credit
Support Provider.
|
In
relation to Party A: Any
guarantor providing an Eligible Guarantee in support of Party A’s obligations
hereunder.
In
relation to Party B: Not applicable.
|
(h)
|
Governing
Law.
This Agreement will be governed by and construed in accordance
with the
laws of the State of New York without reference to choice of law
doctrine
(other than NY General Obligations law Sections 5-1401 and
5-1402).
|
|
(i)
|
Jurisdiction.
Section 13(b) of this Agreement is hereby amended by: (i) deleting
in the
second line of subparagraph (i) thereof the word “non-” and (ii) deleting
the final paragraph thereof.
|
|
(j)
|
Netting
of Payments.
Subparagraph (ii) of Section 2(c) of this Agreement will apply
to the
Transactions under this Agreement.
|
|
(k)
|
“Affiliate”
will have the meaning specified in Section 14 of this Agreement;
provided
that with respect to Party B, Party B shall be deemed to not have
any
Affiliates for purposes of this Agreement, including for purposes
of
Section 6(b)(ii).
|
Part
5.
Other
Provisions.
|
(a)
|
WAIVER
OF TRIAL BY JURY. EACH
PARTY HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHTS TO TRIAL BY
JURY IN ANY
LEGAL PROCEEDING IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION
THEREUNDER, AND ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT
TO
THE OTHER PARTY’S ENTERING INTO THIS AGREEMENT AND EACH TRANSACTION
HEREUNDER.
|
|
(b)
|
Definitions.
This Agreement, each Confirmation, and each Transaction are subject
to the
2000 ISDA Definitions as published by the International Swaps and
Derivatives Association, Inc. as amended, supplemented, updated,
restated,
and superseded from time to time (collectively the “Definitions”), and
will be governed in all respects by the Definitions. The Definitions,
as
so modified are incorporated by reference in, and made part of,
this
Agreement and each Confirmation as if set forth in full in this
Agreement
and such Confirmations. Subject to Section 1(b) of this Agreement,
in the
event of any inconsistency between the provisions of this Agreement
and
the Definitions, this Agreement will prevail. Also, subject to
Section
1(b) of this Agreement, in the event of any inconsistency between
the
provisions of any Confirmation and this Agreement, or the Definitions,
such Confirmation will prevail for the purpose of the relevant
Transaction. The
provisions of the Definitions are hereby incorporated by reference
in and
shall be deemed a part of this Agreement, except that (i) references
in
the Definitions to a “Swap Transaction” shall be deemed references to a
“Transaction” for purposes of this Agreement, and (ii) references to a
“Transaction” in this Agreement shall be deemed references to a “Swap
Transaction” for purposes of the Definitions. Each term capitalized but
not defined in this Agreement or the Definitions shall have the
meaning
assigned thereto in the Pooling and Servicing
Agreement.
|
|
(c)
|
Notices.
For the purposes of subsections (iii) and (v) of Section 12(a),
the date
of receipt shall be presumed to be the date sent if sent on a Local
Business Day or, if not sent on a Local Business Day, the date
of receipt
shall be presumed to be the first Local Business Day following
the date
sent.
|
(d) Reserved.
|
(e)
|
No
Setoff. Notwithstanding
any provision of this Agreement or any other existing or future
agreement,
each party irrevocably waives any and all rights it may have to
set off,
net, recoup or otherwise withhold or suspend or condition payment
or
performance of any obligation between it and the other party hereunder
against any obligation between it and the other party under any
other
agreements. The provisions for Set-off set forth in Section 6(e)
of the
Agreement shall not apply; provided, however, that upon the designation
of
any Early Termination Date, in addition to, and not in limitation
of any
other right or remedy under applicable law, Party A may, by notice
to
Party B, require Party B to set off any sum or obligation that
Party A
owed to Party B against any collateral currently held by Party
B that
Party A has posted to Party B, and Party B shall effect such set-off
promptly, if and to the extent permitted to do so under applicable
law.
|
|
(f)
|
Non-Petition.
Party A hereby irrevocably and unconditionally agrees that it will
not
institute against, or join any other person in instituting against,
Party
B or the trust created pursuant to the Pooling and Servicing Agreement,
any bankruptcy, reorganization, arrangement, insolvency, or similar
proceeding under the laws of the United States, the Cayman Islands
or any
other jurisdiction for the non-payment of any amount due hereunder
or any
other reason until the payment in full of the Notes and the expiration
of
a period of one year plus one day (or, if longer, the applicable
preference period) following such payment. Pursuant to Section
9(c) of
this Agreement, the provisions of this Part 5(f) will survive the
termination of this Agreement so long as any amounts due hereunder
remain
outstanding.
|
|
(g)
|
Severability.
If any term, provision, covenant, or condition of this Agreement,
or the
application thereof to any party or circumstance, shall be held
to be
invalid or unenforceable (in whole or in part) for any reason,
the
remaining terms, provisions, covenants, and conditions hereof shall
continue in full force and effect as if this Agreement had been
executed
with the invalid or unenforceable portion eliminated, so long as
this
Agreement as so modified continues to express, without material
change,
the original intentions of the parties as to the subject matter
of this
Agreement and the deletion of such portion of this Agreement will
not
substantially impair the respective benefits or expectations of
the
parties; provided, however, that this severability provision will
not be
applicable if any provision of Section 2, 5, 6 or 13 of this Agreement
(or
any definition or provision in Section 14 of this Agreement to
the extent
it relates to, or is used in or in connection with, such section)
is held
to be invalid or unenforceable, provided, further, that the parties
agree
to first use reasonable efforts to amend the affected provisions
of
Section 2, 5, 6 or 13 of this Agreement (or any definition or provision
in
Section 14 of this Agreement to the extent it relates to, or is
used in or
in connection with, such section) so as to preserve the original
intention
of the parties. It shall in particular be understood that this
severability clause shall not affect the single agreement concept
of
Section 1(c) of this Agreement.
|
|
The
parties shall endeavor to engage in good faith negotiations to
replace any
invalid or unenforceable term, provision, covenant or condition
with a
valid or enforceable term, provision, covenant or condition, the
economic
effect of which comes as close as possible to that of the invalid
or
unenforceable term, provision, covenant or condition.
|
(h)
Recording
of Conversations.
Each Party: (i) consents to the recording of all telephone conversations
between
trading, operations and marketing personnel of the parties and their Affiliates
in connection with this Agreement or any potential Transaction; (ii) agrees
to
give notice to such personnel that their calls will be recorded; and (iii)
agrees that in any Proceedings, it will not object to the introduction of
such
recordings in evidence on grounds that consent was not properly given.
|
(i)
|
Amendment;
Consent.
Section 9(b) of the Agreement is amended by adding the following
at the
end of such Section:
|
“No
amendment, modification or waiver in respect of this Agreement will be effective
unless the Rating Agency Condition is satisfied.”
For
the purposes of this Agreement, “Rating Agency Condition” means, with respect to
any particular proposed act or omission to act hereunder, and each Cap Rating
Agency specified in connection with such proposed act or omission, that the
party acting or failing to act must consult with each of the specified Swap
Rating Agencies and receive from each Cap Rating Agency a prior written
confirmation that the proposed action or inaction would not cause a downgrade
or
withdrawal of the then-current rating of any Certificates or Notes.
|
(j)
|
Third
Party Beneficiary.
Party B hereby acknowledges and agrees that Party A has been made
a
third-party beneficiary of the provisions under the Pooling and
Servicing
Agreement and shall be entitled to rights and benefits (including
the
priority of payments) according to the terms of the Pooling and
Servicing
Agreement.
|
|
(k)
|
Limitation
of Liability.
It
is expressly understood and agreed by the parties hereto that insofar
as
this Agreement is executed by Xxxxx Fargo Bank, National Association
(“Xxxxx Fargo”) not in its individual capacity, but solely as Trust
Administrator under the Pooling and Servicing Agreement in the
exercise of
the powers and authority conferred and invested in it thereunder;
(i)
Xxxxx Fargo has been directed pursuant to the Pooling and Servicing
Agreement to enter into this Agreement and to perform its obligations
hereunder; (ii) each of the representations, undertakings and agreements
herein made on behalf of Party B is made and intended not as personal
representations of Xxxxx Fargo but is made and intended for the
purpose of
binding only the Trust; and (iii) nothing herein shall be construed
as
imposing any liability on Xxxxx Fargo, individually or personally,
to
perform any covenant either express or implied contained herein,
all such
liability, being expressly waived by the parties hereto and by
any person
claiming by, through or under the parties hereto and under no
circumstances shall Xxxxx
Fargo in its individual capacity be personally liable for any payment
of
any indebtedness or expenses or be personally liable for the breach
or
failure of any obligation, representation, warranty or covenant
made or
undertaken under this Agreement.
|
|
(l)
|
Representations.
Section 3 of this Agreement is hereby amended by adding at the
end thereof
the following subsection (g):
|
“(g)
Relationship Between Parties.
(1) Non
Reliance - Evaluation and Understanding.
(i)
It is not relying upon any communications (whether written or oral) from
the
other party as investment advice or as a recommendation to enter into this
Agreement, any Credit Support Document to which it is a party and each
Transaction hereunder (other than the representations expressly set forth
in
this Agreement and in such Credit Support Document), it being understood
that
information and explanations related to the terms and conditions of a
Transaction shall not be considered investment advice or a recommendation
to
enter into that Transaction; (ii) it has not received from the other party
any
assurance or guarantee as to the expected results of any Transaction; (iii)
it
has consulted with its own legal, regulatory, tax, business, investment,
financial, and accounting advisors to the extent it has deemed necessary,
and it
has made its own independent investment, hedging, and trading decisions based
upon its own judgment and upon any advice from such advisors as it has deemed
necessary and not upon any view expressed by the other party and (iv) it
understands and accepts the terms, conditions and risks of that Transaction.
(2) Purpose.
It is entering into this Agreement, any Credit Support Document to which
it is a
party and each Transaction hereunder for the purposes of managing its borrowings
or investments, hedging its underlying assets or liabilities or in connection
with a line of business.
(3) Status
of
Parties. The other party is not acting as agent, fiduciary or advisor for
it in
respect of any Transaction entered into hereunder.
|
(4)
Eligible Contract Participant. It is an “eligible contract participant” as
that term is defined in Section 1a(12) of the U.S. Commodity Exchange
Act
(7 U.S.C. 1a) as amended by the Commodities Futures Modernization
Act of
2000.
|
|
(m)
|
Additional
Representations.
|
(1)
Party A Representation. Party A is entering into this Agreement and each
Transaction as principal (and not as agent or in any other capacity, fiduciary
or otherwise).
(2)
Party B Representation. Party B is entering into this Agreement as Trust
Administrator pursuant to the Pooling and Servicing Agreement.
|
(n)
|
Non-Recourse
Obligations of Party B.
Party A acknowledges and agrees that, notwithstanding any other
provision
herein, the obligations of Party B under this Agreement and any
confirmations hereto are limited recourse obligations of Party
B, payable
solely from the Trust Fund and the proceeds thereof in accordance
with the
priority of payments and other terms of the Pooling and Servicing
Agreement and that Party A will not have any recourse to any of
the
directors, officers, employees, shareholders or affiliates of Party
B with
respect to any claims, losses, damages, liabilities, indemnities
or other
obligations in connection with any transactions contemplated hereby.
In
the event that the Trust Fund and the proceeds thereof should be
insufficient to satisfy all claims outstanding, any claims against
or
obligations of Party B under this Agreement or any confirmation
hereunder
still outstanding shall be extinguished and thereafter not revive.
The
provisions of this Part 5(n) shall survive the termination of this
Agreement.
|
|
(o)
|
Change
of Account.
Section 2(b) of this Agreement is hereby amended by adding the
following
after the word “delivery” in the first line of the existing text: “to
another account in the same legal and tax jurisdiction as the original
account”.
|
|
(p)
|
Right
to Terminate Following Termination Event.
Section 6(b) of this Agreement is hereby amended by inserting the
following before the period at the end of the last sentence of
the
existing text: “; provided, however, that any election by Party A to
designate an Early Termination Date arising in respect of a Change
in Tax
Law shall not be effective if, within 30 days following Party B’s receipt
of notice from Party A of Party A’s designation of an Early Termination
Date in respect of any event described in Section 5(b)(ii) of this
Agreement, Party B notifies Party A that it waives its right to
receive
additional amounts from Party A under Section 2(d)(i)(4) of this
Agreement
that would not otherwise be payable but for such Change in Tax
Law”.
|
(q)
Transfer.
Section 7 of this Agreement is hereby amended to read in its entirety as
follows:
Except
as stated under Section 6(b)(ii) of this Agreement, in this Section 7 of
this
Agreement and Part 5 of the Schedule, neither Party A nor Party B is permitted
to assign, novate or transfer (whether by way of security or otherwise) as
a
whole or in part any of its rights, obligations or interests under this
Agreement without (1) the prior written consent of the other party and (2)
satisfaction of the Rating Agency Condition with respect to S&P.
Notwithstanding the immediately foregoing sentence, Party A may transfer
this
Agreement to another of Party A’s offices or branches (“Transferee”) on five
Local Business Days prior written notice to Party B and the Swap Rating Agencies
(so long as the Certificates are outstanding); provided that, (i) a Termination
Event or Event of Default does not occur under this Agreement as a result
of
such transfer; (ii) and both Party A and the Transferee are at the time of
transfer “dealers in notional principal contracts” within the meaning of United
States Treasury Regulation Section 1.1001-4 and (iii) the Rating Agency
Condition is satisfied with respect to S&P.
|
(r)
|
Confirmations.
Each Confirmation supplements, forms part of, and will be read
and
construed as one with this
Agreement.
|
|
(s)
|
Agent
for Party B. Party
A acknowledges that Party B has appointed the Trust Administrator
as its
agent under the Pooling and Servicing Agreement to carry out certain
functions on behalf of Party B, and that the Trust Administratorshall
be
entitled to give notices and to perform and satisfy the obligations
of
Party B hereunder on behalf of Party
B.
|
|
(t)
|
Interpretation.
References in this Agreement to the parties hereto, Party A and
Party B,
shall (for the avoidance of doubt) include, where appropriate,
any
permitted successors or assigns
thereof.
|
|
(u)
|
Gross
Up.
The third line of Section 2(d)(i) of this Agreement is hereby amended
by
the insertion before the phrase “of any relevant governmental revenue
authority” of the words “, application or official interpretation” and the
insertion of the words “(either generally or with respect to a party of
the Agreement)” after such phrase.
|
|
(v)
|
Scope
of Agreement. Upon
the effectiveness of this Agreement, unless otherwise agreed to
in writing
by the parties to this Agreement with respect to specific Specified
Transactions, all Specified Transactions then outstanding or any
future
Specified Transactions between Offices of the parties listed in
Part 4(d)
of this Schedule shall be subject to the terms hereof and each
such
Specified Transaction shall be a “Transaction” for purposes of this
Agreement.
|
|
(w)
|
Deduction
or Withholding for Tax.
Notwithstanding the definition of “Indemnifiable Tax” in Section 14 of
this Agreement, in relation to payments by Party A, any Tax shall
be an
Indemnifiable Tax and, in relation to payments by Party B, no Tax
shall be
an Indemnifiable Tax.
|
|
(x)
|
Failure
to Deliver Collateral. Notwithstanding Sections 5(a)(i) and
5(a)(iii) or anything in the CSA to the contrary, any failure by
Party A
to comply with or perform any obligation to be complied with or
performed
by Party A under the CSA shall not be an Event of Default unless
(A) the
Second Trigger Collateralization Level applies, and (B) such failure
is
not remedied on or before the third (3rd) Local Business Day
after notice of such failure is given to Party
A.
|
(y)
Tax Event and Tax Event Upon
Merger.
Section
5(b)(ii) will apply, provided that the words “(x) any action taken by a taxing
authority, or brought in a court of competent jurisdiction, on or after the
date
on which a Transaction is entered into (regardless of whether such action
is
taken or brought with respect to a party to this Agreement) or (y)” shall be
deleted.
Section
5(b)(iii) will apply, provided that Party A shall not be entitled to designate
an Early Termination Date by reason of a Tax Event Upon Merger in respect
of
which it is the Affected Party.
Section
6(b)(ii) will apply, provided that the words “or if a Tax Event Upon Merger
occurs and the Burdened Party is the Affected Party” shall be deleted.
|
(z)
|
Cap Rating
Agency Notifications.
|
|
Notwithstanding
any other provision of this Agreement, this Agreement shall not
be
amended, no Early Termination Date shall be effectively designated
by
Party B, and no transfer of any rights or obligations under this
Agreement
shall be made (other than a transfer of all of Party A’s rights and
obligations with respect to this Agreement in accordance with Part
5(q)
above) unless the Cap Rating Agencies have been given prior written
notice
of such amendment, designation or transfer.
|
(aa)
Compliance with Regulation AB
|
Party
A agrees and acknowledges that Mortgage Asset Securitization Transactions,
Inc. (“Depositor”) is required under Regulation AB under the Securities
Act of 1933, as amended, and the Securities Exchange Act of 1934,
as
amended (the “Exchange Act”) (“Regulation AB”), to disclose certain
financial information regarding Party A, depending on the aggregate
“Significance Percentage” of all Transactions under this Agreement,
together with any other transactions that fall within the meaning
of
“derivative contracts” for the purposes of Item 1115 of Regulation AB
between Party A and Party B, as calculated from time to time in
accordance
with the Calculation Methodology (as defined
below).
|
(ii)
It
shall be a swap disclosure event (“Swap Disclosure Event”) if, on any Business
Day after the date hereof, Depositor notifies Party A that the Significance
Percentage has reached one of the thresholds for significance of derivative
contracts set forth in Item 1115 of Regulation AB (based on a reasonable
determination by Depositor, in good faith and using the Calculation Methodology,
of such Significance Percentage).
(iii) Upon
the
occurrence of a Swap Disclosure Event, Party A, at its own expense, shall
provide to Depositor the applicable Swap Financial Disclosure (as defined
below).
(iv) In
the
alternative to subparagraph (iii) above, upon the occurrence of a Swap
Disclosure Event or at any time after complying with subparagraph (iii) above,
Party A may, at its option and at its own expense, (a) secure another entity
to
replace Party A as party to this Agreement on terms substantially similar
to
this Agreement and subject to prior notification to the Swap Rating Agencies,
which entity (or a guarantor therefor) meets or exceeds the S&P Ratings
Requirement (First Trigger) and Moody’s Ratings Requirement (Second Trigger)
(and which satisfies the Rating Agency Condition) and which entity is able
to
comply with the requirements of Item 1115 of Regulation AB or (b) obtain
a
guaranty of the Party A’s obligations under this Agreement from an affiliate of
the Party A that is able to comply with the financial information disclosure
requirements of Item 1115 of Regulation AB, such that disclosure provided
in
respect of the affiliate will satisfy any disclosure requirements applicable
to
the Swap Provider, and cause such affiliate to provide Swap Financial
Disclosure. If permitted by Regulation AB, any required Swap Financial
Disclosure may be provided by reference to or incorporation by reference
from
reports filed pursuant to the Exchange Act.
(v) Party
A
agrees that, in the event that Party A provides Swap Financial Disclosure
to
Depositor in accordance with paragraph (iii) above or causes its affiliate
to
provide Swap Financial Disclosure to Depositor in accordance with paragraph
(iv)(b) above, it will indemnify and hold harmless Depositor, its respective
directors or officers and any person controlling Depositor, from and against
any
and all losses, claims, damages and liabilities (any “Damage”) caused by any
untrue statement or alleged untrue statement of a material fact contained
in
such Swap Financial Disclosure or caused by any omission or alleged omission
to
state in such Swap Financial Disclosure a material fact required to be stated
therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading; provided, however
that
the foregoing shall not apply to any Damage caused by the negligence or any
willful action of Depositor or any other party (other than Party A or any
of its
affiliates or any of their respective agents), including without limitation
any
failure to calculate the Significance Percentage according to the terms of
this
Agreement or to make any filing as and when required under Regulation
AB.
| (vi) |
Depositor
shall be an express third party beneficiary of this Agreement as
if it
were a party hereto to the extent of Depositor’s rights explicitly
specified herein.
|
(vii) In
the
event that Party A provides the information referred to above, such information
shall be provided on the date that is the later of (i) five (5) Business
Days
after the Swap Disclosure Event or (ii) five (5) Business Days after the
relevant Distribution Date for which the Trust Administrator will be required
to
file a Form 10-D.
For
the
purposes hereof:
“Calculation
Methodology”
means
such method for determining maximum probable exposure of a derivative contract
as mutually agreed to by Depositor and Party A.
“Swap
Financial Disclosure”
means
the financial information specified in Item 1115 of Regulation AB relating
to
the applicable Significance Percentage.
|
(bb)
|
Limitation
on Events of Default.
Notwithstanding the provisions of Sections 5 and 6 of this Agreement,
if
at any time and so long as Party B has satisfied in full all its
payment
obligations under Section 2(a)(i) of this Agreement in respect
of the
transaction with the reference numbers 37536063 and 37536083 (each,
a “Cap
Transaction”) and has at the time no future payment obligations, whether
absolute or contingent, under such Section in respect of such Cap
Transaction, then unless Party A is required pursuant to appropriate
proceedings to return to Party B or otherwise returns to Party
B upon
demand of Party B any portion of any such payment in respect of
such Cap
Transaction, (a) the occurrence of an event described in Section
5(a) of
this Agreement with respect to Party B shall not constitute an
Event of
Default or Potential Event of Default with respect to Party B as
Defaulting Party in respect of such Cap Transaction and (b) Party
A shall
be entitled to designate an Early Termination Date pursuant to
Section 6
in respect of such Cap Transaction only as a result of the occurrence
of a
Termination Event set forth in either Section 5(b)(i) or 5(b)(ii)
of this
Agreement with respect to Party A as the Affected Party, or Section
5(b)(iii) of this Agreement with respect to Party A as the Burdened
Party.
For purposes of each Transaction identified by the reference numbers
37536063 and 37536083, Party A acknowledges and agrees that Party
B’s only
obligation under Section 2(a)(i) of this Agreement in respect of
each Cap
Transaction is to pay the related Fixed Amount on the related Fixed
Amount
Payer Payment Date.
|
[signatures
follow]
The
parties executing this Schedule have executed the Master Agreement and have
agreed as to the contents of this Schedule.
|
UBS
XX
|
XXXXX
FARGO BANK, NATIONAL ASSOCIATION,
not
individually, but solely as trust administrator with respect to
the MASTR
Asset Backed Securities Trust 2006-NC3, Mortgage Pass Through
Certificates, Series 2006-NC3
|
|||
|
By:
|
By:
|
|||
|
Name:
|
Name:
|
|||
|
Title:
|
Title:
|
|||
|
By:
|
||||
|
Name:
|
||||
|
Title:
|
||||
Execution
Copy (Cap)
ISDA®
CREDIT
SUPPORT ANNEX
to
the
Schedule to the
ISDA
Master Agreement
dated
as
of December 28, 2006 between
UBS
AG
(hereinafter referred to as “Party
A”
or
“Pledgor”)
and
XXXXX
FARGO BANK, NATIONAL ASSOCIATION,
not
individually, but solely as trust administrator with respect to the MASTR
Asset
Backed Securities Trust 2006-NC3, Mortgage Pass Through Certificates, Series
2006-NC3 (“Party B”)
(hereinafter
referred to as
