Mortgage Loan Purchase Agreement
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Mortgage Loan Purchase Agreement (the "AGREEMENT"), dated as of April
28, 2003 between ABN AMRO Mortgage Group, Inc. (the "SELLER") and ABN AMRO
Mortgage Corporation (the "PURCHASER").
Subject to the terms and conditions of this Agreement, the Seller
agrees to sell and the Purchaser agrees to purchase certain mortgage loans (the
"MORTGAGE LOANS") as described herein and as identified on the Mortgage Loan
Schedule defined in SECTION 2 hereof. The Mortgage Loans will be purchased on a
servicing released basis.
Now, therefore, in consideration of the premises and the mutual
agreements set forth herein, the parties agree as follows:
1. PURCHASE AND SALE OF THE MORTGAGE LOANS.
A. Pursuant to the terms hereof and upon satisfaction of the conditions set
forth herein, the Seller agrees to sell and the Purchaser agrees to purchase,
Mortgage Loans having the general characteristics set forth in this Agreement
and specifically identified on the Mortgage Loan Schedule, for the Purchase
Price set forth below in SECTION 3(A) hereof and having an aggregate principal
balance on and as of the date of such Mortgage Loan Schedule (the "CUT-OFF
DATE") of approximately $698,358,350 after deduction of principal payments due
on or before the Cut-Off Date (which amount may vary plus or minus 5% thereof),
or such other aggregate principal balance as agreed by the Purchaser and the
Seller as evidenced by the actual aggregate principal balance of the Mortgage
Loans accepted by the Purchaser on the Closing Date (as defined below).
B. Subject to mutual agreement between the Purchaser and the Seller, the
closing for the purchase and sale of the Mortgage Loans shall take place on
April 28, 2003 (the "CLOSING DATE") at the office of Purchaser's counsel in New
York, New York or such other place as the parties shall agree.
2. MORTGAGE LOAN SCHEDULE. Attached to this Agreement as Schedule 1 is a listing
of the Mortgage Loans evidenced by promissory notes, mortgage notes or other
evidence of indebtedness (the "MORTGAGE NOTES") evidencing the indebtedness of
an obligor (the "MORTGAGOR") under the mortgages, deeds of trust or other
instruments securing a Mortgage Loan (the "MORTGAGES") to be purchased by and
delivered to the Purchaser on the Closing Date (as such may be amended prior to
the Closing Date by mutual agreement of the parties) (the "MORTGAGE LOAN
SCHEDULE"). The "Mortgage Loan Schedule" as of the Closing Date shall refer to
the Mortgage Loan Schedule as delivered on the Cut-Off Date related to such
Mortgage Loans to be purchased by or on behalf of the Purchaser pursuant to the
terms of this Agreement. The Mortgage Loan Schedule shall contain as to each
Mortgage Loan listed thereon, at a minimum, the Mortgage Loan information
indicated on SCHEDULE 2 hereto.
3. PURCHASE PRICE.
A. In exchange for the Mortgage Loans, on the Closing Date, the Purchaser
shall transfer to the Seller by wire transfer in immediately available funds the
purchase price (the "PURCHASE PRICE") which is equal to the principal balance
thereof as of the Cut-Off Date plus any accrued and unpaid interest thereon to
such Cut-Off Date.
B. The Purchaser shall be entitled to all scheduled payments of principal
and interest due with respect to the Mortgage Loans after the Cut-Off Date, and
all other recoveries of principal and interest collected after the Cut-Off Date
(other than in respect of principal and interest on the Mortgage Loans due on or
before the Cut-Off Date). The Seller shall be entitled to all scheduled payments
of principal and interest due with respect to the Mortgage Loans on or before
the Cut-Off Date, and all other recoveries of principal and interest collected
on or before the Cut-Off Date (other than in respect of principal and interest
on the Mortgage Loans due after the Cut-Off Date). The principal balance of each
Mortgage Loan as of the Cut-Off Date is determined after deduction of payments
of principal due on or before the Cut-Off Date whether or not collected.
Therefore, payments of scheduled principal and interest prepaid for a date due
following the Cut-Off Date shall not be deducted from the principal balance as
of the Cut-Off Date but such prepaid amounts shall belong to and be promptly
remitted to the Purchaser.
4. EXAMINATION OF MORTGAGE FILES.
Prior to the Closing Date, the Seller will have made files for each
Mortgage Loan, that consist at least of the documents listed on SCHEDULE 3
attached hereto (with respect to each Mortgage Loan, a "Mortgage File", and
collectively, the "MORTGAGE FILES"), available to the Purchaser or its agents,
for examination at the Seller's offices or such other location as shall
otherwise be agreed upon by the Purchaser and the Seller. The Purchaser may
purchase all or part of the Mortgage Loans with or without conducting any
partial or complete examination. The fact that the Purchaser or its agents have
conducted or have failed to conduct any partial or complete examination of the
Mortgage Files shall not affect the Purchaser's rights under this Agreement,
including, but not limited to, the rights to demand repurchase, substitution or
other relief as provided in this Agreement.
5. TRANSFER OF MORTGAGE LOANS; POSSESSION OF MORTGAGE FILES.
A. On the Closing Date, subject to the satisfaction of the terms and
conditions hereof, the Seller shall sell, transfer, assign, set over and
otherwise convey to the Purchaser, without recourse, but subject to the terms of
this Agreement, all right, title and interest of the Seller in and to the
Mortgage Loans and all proceeds thereof, wherever located, including without
limitation, all amounts in respect of principal and interest received or
receivable with respect to Mortgage Loan payments due after the Cut-Off Date
(and including scheduled payments of principal and interest due after the
Cut-Off Date but received by the Seller on or before the Cut-Off Date, but not
including payments of principal and interest due on the Mortgage Loans on or
before the Cut-Off Date), together with the proceeds of any related mortgage
insurance policies. Such transfer shall be made
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directly to the Purchaser in accordance with the letter delivered to the Seller
by the Purchaser attached hereto as EXHIBIT A (the "INSTRUCTION LETTER"). The
Seller's records will accurately reflect the sale of each Mortgage Loan to the
Purchaser.
B. The ownership of each Mortgage Loan and the related Mortgage Note, the
Mortgage and the contents of the related Mortgage File shall be, upon
satisfaction of SUBSECTION 5(A) hereof, vested in the Purchaser and the
ownership of all records and documents with respect to such Mortgage Loan
prepared by or which come into the possession of the Seller shall immediately
vest in the Purchaser and shall be retained and maintained by the Seller at the
will and for the benefit of the Purchaser in a custodial capacity only. The
Seller shall deliver to the Purchaser or its agent in accordance with the
instructions set forth in EXHIBIT A, simultaneously with the execution and
delivery of this Agreement or prior to the Closing Date, all of the documents
pertaining to each Mortgage Loan.
C. The transfer of the Mortgage Loans as described herein shall be absolute
and is intended by the parties to be a sale. In the event that a court deems the
conveyance set forth herein not to constitute a sale, the Seller shall have
granted to the Purchaser and the Trustee (as defined in the Pooling and
Servicing Agreement, dated as of April 1, 2003 (the "POOLING AND SERVICING
AGREEMENT"), among the Purchaser, as depositor, ABN AMRO Mortgage Group, Inc.,
as servicer, and JPMorgan Chase Bank, as trustee) a first priority security
interest in the Mortgage Loans and in the proceeds thereof of any kind or nature
whatsoever, and in the proceeds of any related insurance policies, subject to
the satisfaction or waiver of the conditions set forth in SECTION 11 hereof, and
shall take, or shall cause to have been taken, all steps necessary prior to the
Closing Date to perfect such security interest in the Purchaser.
6. BOOKS AND RECORDS.
On the Closing Date, following the sale of the Mortgage Loans to the
Purchaser, title to each Mortgage and the related Mortgage Note shall be
transferred to the Purchaser or its assignee in accordance with this Agreement.
All rights arising out of the Mortgage Loans after the Cut-Off Date including,
but not limited to, any and all funds received on or in connection with a
Mortgage Loan and due after the Cut-Off Date shall be received and held by the
Seller in a custodial capacity for the benefit of the Purchaser or its assignee
as the owner of the Mortgage Loans in accordance herewith and shall be delivered
or caused to be delivered by the Seller to the Purchaser or its assignee on or
immediately following the Closing Date. Any funds received by the Seller, the
Purchaser or the Servicer (as defined in the Pooling and Servicing Agreement)
after the Cut-Off Date but due prior to the Cut-Off Date shall remain the
property of the Seller and shall be promptly remitted to the Seller.
7. FURTHER ACTIONS; FINANCING STATEMENTS.
A. In furtherance of the provisions of SECTION 5(C) hereof, the Seller
agrees to take or cause to be taken such further actions to execute, deliver and
file or cause to be executed, delivered and filed, such further documents and
instruments (including, without limitation, any UCC financing
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statements) as may be necessary, or as the Purchaser may reasonably request, in
order to perfect and maintain the security interest created pursuant to said
section and to otherwise fully effectuate the purposes, terms and conditions of
this Agreement, and the Purchaser shall cooperate in any such action.
B. The Seller shall: (i) promptly execute, deliver, and file any financing
statements, amendments, continuation statements, assignments, certificates and
other documents with respect to such security interest as may be necessary to
enable the Purchaser to perfect or to maintain the perfection of such security
interest, each in form and substance satisfactory to the Purchaser; and the
Seller hereby grants to the Purchaser, subject to the satisfaction or waiver of
the conditions set forth in SECTION 11 hereof, the right, at the Purchaser's
option, to file any or all such financing statements, amendments, continuation
statements, assignments, certificates and other documents pursuant to the UCC
and otherwise without its signature and hereby irrevocably appoints the
Purchaser, subject to the satisfaction or waiver of the conditions set forth in
SECTION 11 hereof, as its attorney-in-fact to execute, deliver and file any such
financing statements, amendments, continuation statements, assignments,
certificates and other documents in the Seller's name and to perform all other
acts which the Purchaser deems appropriate to perfect or to maintain the
perfection of the security interest; and (ii) notify the Purchaser within five
(5) days after the occurrence of any of the following: (A) any change in the
Seller's corporate name or any trade name; (B) any change in the Seller's
location of its chief executive office or principal place of business; and (C)
any merger or consolidation or other change in Seller's identity or material
change in its corporate structure.
8. REPRESENTATIONS, WARRANTIES AND AGREEMENTS OF SELLER.
A. The Seller hereby represents and warrants to the Purchaser as of the
Closing Date (or such other date as is specified in the related representation
or warranty) as follows:
i. The Seller has been duly created and is validly existing as a
corporation under the laws of the State of Delaware;
ii. The execution and delivery of this Agreement by the Seller and its
performance of and compliance with the terms of this Agreement will not violate
the Seller's charter or by-laws or will not conflict with or result in a breach
of any of the terms or provisions of, or constitute a default under, any
indenture, mortgage, deed of trust, loan agreement or other material agreement
or instrument to which the Seller is a party or by which the Seller or to which
any of the property or assets of the Seller is subject;
iii. This Agreement, assuming due authorization, execution and
delivery by the Purchaser, constitutes a valid and legally binding obligation of
the Seller, enforceable against the Seller in accordance with its terms,
subject, as to enforcement, to bankruptcy, insolvency, reorganization and other
similar laws of general applicability relating to or affecting creditors' rights
and to general equity principles, regardless of whether such enforcement is
considered in a proceeding in equity or at law;
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iv. The Seller is not in default with respect to any order or decree
of any court or any order, regulation or demand of any federal, state, municipal
or governmental agency, which default might have consequences that would
materially and adversely affect the condition (financial or other) or operations
of the Seller or its properties or might have consequences that would affect its
performance hereunder;
v. No litigation is pending or, to the best of the Seller's knowledge,
threatened against the Seller which would prohibit its entering into this
Agreement or performing its obligations under this Agreement;
vi. The Seller is an approved conventional seller/servicer for FNMA or
FHLMC in good standing;
vii. The consummation of the transactions contemplated by this
Agreement are in the ordinary course of business of the Seller, and the
transfer, assignment and conveyance of the Mortgage Notes and the Mortgages by
the Seller pursuant to this Agreement is not subject to the bulk transfer or any
similar statutory provisions in effect in the State of Michigan;
viii. With respect to each Mortgage Loan:
(a) that the information set forth in the Mortgage Loan Schedule
appearing as an exhibit to this Agreement is true and correct in all material
respects at the date or dates respecting which such information is furnished as
specified therein;
(b) the Seller is the sole owner and holder of each Mortgage Loan
free and clear of all liens, pledges, charges or security interests of any
nature and has full right and authority, subject to no interest or participation
of, or agreement with, any other party, to sell and assign the same;
(c) no payment of principal of or interest on or in respect of
any Mortgage Loan is 30 days or more past due from the Due Date of such payment;
(d) to the best of the Seller's knowledge, as of the date of the
transfer of the Mortgage Loans to the Purchaser, there is no valid offset,
defense or counterclaim to any Mortgage Note or Mortgage;
(e) there is no proceeding pending, or to the best of the
Seller's knowledge, threatened for the total or partial condemnation of any of
the real property, together with any improvements thereto, securing the
indebtedness of the Mortgagor under the related Mortgage Loan (the "MORTGAGED
PROPERTY") and the Mortgaged Property is free of material damage and is in good
repair and neither the Mortgaged Property nor any improvement located on or
being part of the Mortgaged Property is in violation of any applicable zoning
law or regulation;
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(f) that each Mortgage Loan complies in all material respects
with applicable state or federal laws, regulations and other requirements,
pertaining to usury, equal credit opportunity and disclosure laws, and each
Mortgage Loan was not usurious at the time of origination;
(g) to the best of the Seller's knowledge, all insurance premiums
previously due and owing with respect to each Mortgaged Property have been paid
and all taxes and governmental assessments previously due and owing, and which
may become a lien against the Mortgaged Property, with respect to the Mortgaged
Property have been paid;
(h) that each Mortgage Note and the related Mortgage are genuine
and each is the legal, valid and binding obligation of the maker thereof,
enforceable in accordance with its terms except as such enforcement may be
limited by bankruptcy, insolvency, reorganization or other similar laws
affecting the enforcement of creditors' rights generally and by general equity
principles (regardless of whether such enforcement is considered in a proceeding
in equity or at law); all parties to the Mortgage Note and the Mortgage had
legal capacity to execute the Mortgage Note and the Mortgage; and each Mortgage
Note and Mortgage have been duly and properly executed by the Mortgagor;
(i) that each Mortgage is a valid and enforceable first lien on
the property securing the related Mortgage Note, and that each Mortgage Loan is
covered by an ALTA mortgagee title insurance policy or other form of policy or
insurance generally acceptable to FNMA or FHLMC, issued by, and is a valid and
binding obligation of, a title insurer acceptable to FNMA or FHLMC insuring the
originator, its successor and assigns, as to the lien of the Mortgage in the
original principal amount of the Mortgage Loan subject only to (a) the lien of
current real property taxes and assessments not yet due and payable, (b)
covenants, conditions and restrictions, rights of way, easements and other
matters of public record as of the date of recording of such Mortgage acceptable
to mortgage lending institutions in the area in which the Mortgaged Property is
located or specifically referred to in the appraisal performed in connection
with the origination of the related Mortgage Loan and (c) such other matters to
which like properties are commonly subject which do not individually, or in the
aggregate, materially interfere with the benefits of the security intended to be
provided by the Mortgage;
(j) neither the Seller nor any prior holder of any Mortgage has,
except as the Mortgage File may reflect, modified the Mortgage in any material
respect; satisfied, cancelled or subordinated such Mortgage in whole or in part;
released such Mortgaged Property in whole or in part from the lien of the
Mortgage; or executed any instrument of release, cancellation, modification or
satisfaction;
(k) that each Mortgaged Property consists of a fee simple estate
or condominium form of ownership in real property;
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(l) the condominium projects that include the condominiums that
are the subject of any condominium loan are generally acceptable to FNMA or
FHLMC;
(m) no foreclosure action is threatened or has been commenced
(except for the filing of any notice of default) with respect to the Mortgage
Loan; and except for payment delinquencies not in excess of 30 days, to the best
of the Seller's knowledge, there is no default, breach, violation or event of
acceleration existing under the Mortgage or the related 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 of
acceleration; and the Seller has not waived any default, breach, violation or
event of acceleration;
(n) that each Mortgage Loan was originated on FNMA or FHLMC
uniform instruments for the state in which the Mortgaged Property is located;
(o) that based upon a representation by each Mortgagor at the
time of origination or assumption of the applicable Loan, 97.54% of the Group I
Loans and 95.88% of the Group II Loans, measured by Principal Balance were to be
secured by primary residences and no more than 2.46% of the Group I Loans and
4.12% of the Group II Loans, measured by Principal Balance were to be secured by
second homes;
(p) that an appraisal of each Mortgaged Property was conducted at
the time of origination of the related Mortgage Loan, and that each such
appraisal was conducted in accordance with FNMA or FHLMC criteria, on FNMA or
FHLMC forms and comparables on at least three properties were obtained;
(q) that no Mortgage Loan had a Loan-to-Value Ratio at
origination in excess of 95%;
(r) the Mortgage Loans were not selected in a manner to adversely
affect the interests of the Purchaser and the Seller knows of no conditions
which reasonably would cause it to expect any Mortgage Loan to become delinquent
or otherwise lose value;
(s) each Mortgage Loan was either (A) originated directly by or
closed in the name of either: (i) a savings and loan association, savings bank,
commercial bank, credit union, insurance company, or similar institution which
is supervised and examined by a federal or state authority or (ii) a mortgagee
approved by the Secretary of Housing and Urban Development pursuant to Sections
203 and 211 of the National Housing Act or (B) originated or underwritten by an
entity employing underwriting standards consistent with the underwriting
standards of an institution as described in subclause (A)(i) or (A)(ii) above;
(t) each Mortgage Loan is a "qualified mortgage" within the
meaning of Section 860G of the Internal Revenue Code of 1986, without regard
toss.1.860 G-2(f) of the REMIC provisions or any similar rule;
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(u) each Mortgage Loan that has a Loan-to-Value Ratio at
origination in excess of 80% is covered by a primary mortgage insurance policy;
and
(v) that no Mortgage Loan permits negative amortization or the
deferral of accrued interest.
It is understood and agreed that the representations and warranties
set forth in this SECTION 8 shall survive the sale of the Mortgage Loans to
the Purchaser and shall inure to the benefit of the Purchaser,
notwithstanding any restrictive or qualified endorsement on any Mortgage
Note (or lost note affidavit and indemnity) or assignment of Mortgage or
the examination of any Mortgage File.
Upon discovery by either the Seller, the Purchaser or its designees of
a breach of any of the foregoing representations or warranties of the
Seller which materially and adversely affects (1) the value of any of the
Mortgage Loans actually delivered or (2) the interests of the Purchaser
therein, the party discovering such breach shall give prompt written notice
to the other. Within 90 (ninety) days of its discovery or its receipt of
notice of any such breach of a representation or warranty, the Seller
shall, with respect to the Mortgage Loan(s) to which such breach relates,
either (i) cure such breach in all material respects (except for a breach
of that portion of the representation and warranty relating to any casualty
from the presence of hazardous waste or hazardous substances), (ii)
repurchase such Mortgage Loan or Mortgage Loans (or any property acquired
in respect thereof) from the Purchaser at the Purchase Price, as adjusted
for the then current principal balance or (iii) within the 90 (ninety)-day
period following the Closing Date substitute another mortgage loan for such
Mortgage Loan. Such substitute mortgage loan shall on the date of
substitution, (a) have a principal balance not in excess of the principal
balance of the defective Mortgage Loan, (b) be accruing interest at a rate
of interest at least equal to that of the defective Mortgage Loan, (c) have
a remaining term to stated maturity not greater than, and not more than two
years less than, that of the Mortgage Loan so substituted, (d) have an
original loan-to-value ratio not higher than that of the Mortgage Loan so
substituted and a current loan-to-value ratio not higher than that of the
Mortgage Loan so substituted, and (e) comply with all the representations
and warranties relating to Mortgage Loans set forth herein, as of the date
of substitution (such mortgage loan being referred to herein as a
"QUALIFYING SUBSTITUTE MORTGAGE LOAN"). Except as set forth in SECTION 12
hereof, it is understood and agreed that the obligations of the Seller set
forth in this SECTION 8 to cure, substitute for or repurchase a defective
Mortgage Loan constitute the sole remedies of the Purchaser respecting a
breach of the foregoing representations and warranties.
The Purchaser, upon receipt by it of the full amount of the Purchase
Price as adjusted for the then current principal balance for a Mortgage
Loan that is repurchased, or upon receipt of the Mortgage File for a
Qualifying Substitute Mortgage Loan for a Mortgage Loan that is substituted
or repurchased, shall release or cause to be released and reassign to the
Seller the related Mortgage File for the Mortgage Loan that is substituted
and shall execute
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and deliver such instruments of transfer or assignment, in each case
without recourse, representation, or warranty, as shall be necessary to
vest in the Seller or its designee or assignee title to any such
substituted Mortgage Loan released pursuant hereto, free and clear of all
security interests, liens and other encumbrances created by this Agreement,
which instruments shall be prepared by the Seller at its expense and shall
be reasonably acceptable to the Purchaser, and the Purchaser shall have no
further responsibility with respect to the Mortgage File relating to such
Mortgage Loan that is substituted.
Any cause of action against the Seller or relating to or arising out
of the breach of any representations and warranties made in this SECTION 8
shall accrue as to any Mortgage Loan upon (i) discovery of such breach by
the Purchaser or notice thereof by the Seller to the Purchaser, (ii)
failure by the Seller to cure such breach, repurchase such Mortgage Loan or
substitute a Qualifying Substitute Mortgage Loan as specified above, and
(iii) demand upon the Seller by the Purchaser for all amounts payable in
respect of such Mortgage Loan.
9. REPRESENTATIONS, WARRANTIES AND AGREEMENTS OF PURCHASER.
A. The Purchaser hereby represents and warrants to the Seller, as of the
date hereof (or such other date as is specified in the related representation or
warranty) as follows:
i. The Purchaser is a corporation duly formed and validly existing
under the laws of the State of Delaware;
ii. The execution and delivery of this Agreement by the Purchaser and
its performance of and compliance with the terms of this Agreement will not
violate the Purchaser's corporate charter or by-laws or will not conflict with
or result in a breach of any of the terms or provisions of, or constitute a
default under, any indenture, mortgage, deed of trust, loan agreement or other
material agreement or instrument to which the Purchaser is a party or by which
the Purchaser or to which any property or assets of the Purchaser is subject;
iii. This Agreement, assuming due authorization, execution and
delivery by the Seller, constitutes a valid and legally binding obligation of
the Purchaser, enforceable against the Purchaser in accordance with its terms,
subject, as to enforcement, to bankruptcy, insolvency, reorganization and other
similar laws of general applicability relating to or affecting creditors' rights
and to general equity principles, regardless of whether such enforcement is
considered in a proceeding in equity or at law;
iv. The Purchaser is not in default with respect to any order or
decree of any court or any order, regulation or demand of any federal, state,
municipal or governmental agency, which the Purchaser default might have
consequences that would materially and adversely affect the condition (financial
or other) or operations of the Purchaser or its properties or might have
consequences that would affect its performance hereunder; and
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v. No litigation is pending or, to the best of the Purchaser's
knowledge, threatened against the Purchaser which would prohibit its entering
into this Agreement or performing its obligations under this Agreement;
10. PURCHASER'S CONDITIONS TO CLOSING. The obligations of the Purchaser under
this Agreement shall be subject to the satisfaction, on or prior to the Closing
Date, of the following conditions:
A. The obligations of the Seller required to be performed by it on or prior
to the Closing Date pursuant to the terms of this Agreement shall have been duly
performed and complied with and all of the representations and warranties of the
Seller under this Agreement shall be true and correct as of the date hereof and
as of the Closing Date, and no event shall have occurred which, with notice or
the passage of time, or both, would constitute a default under this Agreement,
and the Purchaser shall have received a certificate to that effect signed by an
Authorized Officer (as defined below) of the Seller.
B. The Purchaser or the Purchaser's document custodian shall have received,
or the Purchaser's attorney shall have received in escrow, all of the following
closing documents, in such forms as are agreed upon and acceptable to the
Purchaser, duly executed by all signatories other than the Purchaser, as
required pursuant to the respective terms thereof:
i. An assignment or assignments of the Mortgage Loans to the Purchaser
substantially in the form attached hereto as EXHIBIT B with such changes as are
required to adapt the assignment to the proper form in the jurisdiction where
the related Mortgage Property is located, and each original Mortgage Note (or
lost note affidavit and indemnity), duly endorsed originally or by facsimile,
without recourse, to the Purchaser, in each case in accordance with the
instructions set forth in EXHIBIT A attached hereto, which assignment or
assignments and Mortgage Note (or lost note affidavit and indemnity) shall be
delivered to and held by the Purchaser or its agent on behalf of the Purchaser;
ii. The Mortgage Loan Schedule prepared by Purchaser dated as of the
related Closing Date and attached hereto;
iii. A certificate signed by an officer, which officer may be either a
senior vice president, a vice president, an assistant vice president or
assistant secretary (an "AUTHORIZED OFFICER"), dated as of the Closing Date,
substantially in the form attached hereto as EXHIBIT C, to the parties hereto,
and attached thereto copies of the charter and by-laws and a Good Standing
Certificate or a memorandum setting forth the verbal assurances from the
appropriate regulatory authorities with respect to the Seller will be
immediately forthcoming; and
iv. An opinion of Seller's counsel in substantially the form attached
hereto as EXHIBIT D.
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v. A security release certification, in a form acceptable to the
Purchaser, executed by the appropriate mortgagee or secured party, if any of the
Mortgage Loans have at any time been subject to any security interest, pledge or
hypothecation for the benefit of such person.
C. The Seller will furnish to the Purchaser such other certificates of its
officers or others and such other documents to evidence fulfillment of the
conditions set forth in this Agreement as the Purchaser and its attorney may
reasonably request.
11. SELLER'S CONDITIONS TO CLOSING. The obligations of the Seller under this
Agreement shall be subject to the satisfaction, on or prior to the Closing Date,
of the following conditions:
A. The obligations of the Purchaser required to be performed by it on or
prior to the Closing Date pursuant to the terms of this Agreement shall have
been duly performed and complied with and all of the representations and
warranties of the Purchaser under this Agreement shall be true and correct as of
the date hereof and as of the Closing Date, and no event shall have occurred
which, with notice or the passage of time, or both, would constitute a default
under this Agreement, and the Seller shall have received a certificate to that
effect signed by an Authorized Officer of the Purchaser;
B. The Seller shall have received, or the Seller's attorney shall have
received in escrow, a certificate signed by an Authorized Officer of the
Purchaser dated as of the Closing Date, in the form acceptable to the parties
hereto, and attached thereto the resolutions of the Purchaser authorizing the
transactions contemplated by this Agreement, together with copies of the
Articles of Association and by-laws as of a recent date with respect to the
Purchaser; and
C. The Purchaser will furnish to the Seller such other certificates of its
officers or others and such other documents to evidence fulfillment of the
conditions set forth in this Agreement as the Seller and its attorney may
reasonably request.
12. INDEMNIFICATION.
A. The Seller agrees to indemnify and hold harmless the Purchaser against
any and all losses, claims, expenses, damages or liabilities to which Purchaser
may become subject, insofar as such losses, claims, expenses, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any
representation or warranty made by the Seller in SECTION 8(A)(I) THROUGH SECTION
8(A)(VII) hereof on which Purchaser has relied, being, or alleged to be,
materially untrue or incorrect. This indemnity will be in addition to any
liability which the Seller may otherwise have.
B. The Purchaser agrees to indemnify and hold harmless the Seller solely in
its capacity as seller of the Mortgage Loans against any and all losses, claims,
expenses, damages or liabilities to which the Seller may become subject, insofar
as such losses, claims, expenses, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any representation or warranty made by
the Purchaser in SECTION 9 hereof on which the Seller has relied, being, or
alleged to be, materially
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untrue or incorrect (notwithstanding the Purchaser's lack of knowledge with
respect to the substance of any representation or warranty to which SECTION 9
applies which is made to the best of the Purchaser's knowledge). This indemnity
will be in addition to any liability which the Purchaser may otherwise have.
C. Promptly after receipt by either the Purchasers or the Seller of notice
of the commencement of any action or proceeding in any way relating to or
arising from this Agreement, such party will notify the other party of the
commencement thereof; but the omission so to notify the party from whom
indemnification is sought (the "Indemnifying Party") will not relieve the
Indemnifying Party from any liability which it may have to the party seeking
indemnification (the "Indemnified Party") except to the extent that the
Indemnifying Party is adversely affected by the lack of notice. In case any such
action is brought against the Indemnified Party, and it notifies the
Indemnifying Party of the commencement thereof, the Indemnifying Party will be
entitled to participate in the defense (with the consent of the Indemnified
Party which shall not be unreasonably withheld) of such action at the
Indemnifying Party's expense.
13. NOTICES. All demands, notices and communications hereunder shall be in
writing and shall be deemed to have been duly given if mailed, by registered or
certified mail, return receipt requested, or, if by other means, when received
by the other party. Notices to the Seller shall be directed to InterFirst, 000
Xxxx Xxxxxxxxxx Xxxxxxx, Xxx Xxxxx, Xxxxxxxx 00000, Attention: Xxxxx Xxxx - Vice
President with a copy to ABN AMRO Mortgage Group, Inc., 0000 Xxxx Xxx Xxxxxx
Xxxx, Xxxx, Xxxxxxxx 00000, Attention: Xxxxxx X. Xxxxx - Assistant Secretary;
and notices to the Purchaser shall be directed to ABN AMRO Mortgage Corporation,
000 Xxxxx XxXxxxx Xxxxxx, Xxxxx 000, Xxxxxxx, Xxxxxxxx 00000, Attention: Xxxxx
Xxxxxxx - First Vice President - ABN AMRO Mortgage Operations, with a copy to
ABN AMRO North America, Inc. 000 Xxxxx XxXxxxx Xxxxxx, Xxxxxxx, Xxxxxxxx 00000,
Attention: Xxxx Xxxxxx - Associate General Counsel; or such other addresses as
may hereafter be furnished to the other party by like notice.
14. TERMINATION. This Agreement may be terminated (a) by the mutual consent of
the parties hereto, or (b) by the Purchaser if the conditions to the Purchaser's
obligations to closing set forth under SECTION 10 hereof are not fulfilled as
and when required to be fulfilled or (c) by the Seller if the Purchaser's
obligations under SECTION 11 hereof are not fulfilled as and when required. In
the event of a termination pursuant to SECTION 14(B), the Seller agrees that it
will pay the out-of-pocket fees and expenses of the Purchaser in connection with
the transactions contemplated by this Agreement and in the event of a
termination pursuant to SECTION 14(C), the Purchaser agrees that it will pay the
out-of-pocket fees and expenses of the Seller in connection with the
transactions contemplated by this Agreement.
15. REPRESENTATIONS, WARRANTIES AND AGREEMENTS TO SURVIVE DELIVERY. All
representations, warranties and agreements contained in this Agreement, or in
certificates of officers of the Seller and the Purchaser submitted pursuant
hereto, shall remain operative and in full force and effect and shall survive
transfer and sale of the Mortgage Loans to the Purchaser.
-12-
16. SEVERABILITY. If any provision of this Agreement shall be prohibited or
invalid under applicable law, the Agreement shall be ineffective only to such
extent, without invalidating the remainder of this Agreement.
17. COUNTERPARTS. This Agreement may be executed in any number of counterparts,
each of which shall be an original, but both of which together shall constitute
one and the same agreement.
18. GOVERNING LAW. This Agreement shall be deemed to have been made in the State
of New York and shall be interpreted in accordance with the laws of such state
without regard to the principles of conflicts of law of such state.
19. FURTHER ASSURANCES. The Seller and the Purchaser agree to execute and
deliver such instruments and take such actions as the other party may, from time
to time, reasonably request in order to effectuate the purpose and to carry out
the terms of this Agreement.
20. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and inure to
the benefit of and be enforceable by the Seller and the Purchaser and their
permitted successors and assigns. The Seller acknowledges and agrees that the
Purchaser may assign its rights under this Agreement. Any person into which the
Seller may be merged or consolidated (or any person resulting from any merger or
consolidation involving the Seller), or any person succeeding to the business of
the Seller shall be considered the "successor" of the Seller hereunder. Except
as provided in the two preceding sentences, this Agreement cannot be assigned,
pledged or hypothecated by any party hereto without the written consent of the
other party to this Agreement. Notwithstanding anything to the contrary in this
SECTION 20, the parties hereto agree that the Purchaser has the right to assign
its rights and interest in, to and under SECTION 8 hereof.
21. AMENDMENTS. No term or provision of this Agreement may be waived or modified
unless such waiver or modification is in writing and signed by a duly authorized
officer of the party against whom such waiver or modification is sought to be
enforced.
-13-
IN WITNESS WHEREOF, the Seller and the Purchaser have caused their names to
be signed hereto by their respective duly authorized officers as of the date
first above written.
ABN AMRO Mortgage Group, Inc.,
as Seller
By: /s/ Xxxxxx X. Xxxx
-------------------------------
Name: Xxxxxx X. Xxxx
Title: Executive Vice President
AAMGI MORTGAGE LOAN PURCHASE AGREEMENT
ABN AMRO Mortgage Corporation,
as Purchaser
By: /s/ Xxxxxx X. Xxxxxxx
-------------------------------
Name: Xxxxxx X. Xxxxxxx
Title: Vice President
AAMGI MORTGAGE LOAN PURCHASE AGREEMENT
SCHEDULE 1
MORTGAGE LOAN SCHEDULE
----------------------
(Provided upon request)
SCHEDULE 2
MORTGAGE LOAN SCHEDULE INFORMATION
----------------------------------
Each Mortgage Loan shall be identified by at least the following details,
among others, relating to each Mortgage Loan:
(i) the loan number of the Mortgage Loan and name of the related
Mortgagor;
(ii) the street address of the Mortgaged Property including city,
state and zip code;
(iii) the mortgage interest rate as of the Cut-Off Date;
(iv) the original term and maturity date of the related Mortgage Note;
(v) the original principal balance;
(vi) the first payment date;
(vii) the monthly payment in effect as of the Cut-Off Date;
(viii) the date of the last paid installment of interest;
(ix) the unpaid principal balance as of the close of business on the
Cut-Off Date;
(x) the loan-to-value ratio at origination;
(xi) the type of property;
(xii) whether a primary mortgage insurance policy is in effect as of
the Cut-Off Date;
(xiii) the nature of occupancy at origination;
(xiv) the servicing fee;
(xv) the county in which the Mortgaged Property is located, if
available; and
(xvi) the closing date.
SCHEDULE 3
MORTGAGE FILE INFORMATION
-------------------------
Each Mortgage File shall include at least the following documents, among
others, with respect to each Mortgage Loan transferred and assigned from the
Seller to the Purchaser, or its agent:
(i) the original Mortgage Note (or, if the original Mortgage Note has
been lost or destroyed, a lost note affidavit and indemnity) bearing
all intervening endorsements endorsed, "Pay to the order of JPMorgan
Chase Bank for the benefit of the Certificateholders of ABN AMRO
Mortgage Corporation Series 2003-5 Attn: Corporate Trust Department,
000 Xxxxxx Xxxxxx, Xxxxxxx, XX 00000, without recourse" and signed
in the name of the mortgagee at the request of the Seller by an
Authorized Officer showing an unbroken chain of title from the
originator thereof to the person endorsing;
(ii) (a) the original Mortgage with evidence of recording thereon, and if
the Mortgage was executed pursuant to a power of attorney, a
certified true copy of the power of attorney certified by the
recorder's office, with evidence of recording thereon, or certified
by a title insurance company or escrow company to be a true copy
thereof; PROVIDED, that if such original Mortgage or power of
attorney cannot be delivered with evidence of recording thereon on
or prior to the Closing Date because of a delay caused by the public
recording office where such original Mortgage has been delivered for
recordation or because such original Mortgage has been lost, the
Seller shall deliver or cause to be delivered to the Purchaser (with
a copy to the Trustee (as defined in the Pooling and Servicing
Agreement)) a true and correct copy of such Mortgage, together with
(1) in the case of a delay caused by the public recording office, a
certificate signed by an Authorized Officer of the Seller stating
that such original Mortgage has been dispatched to the appropriate
public recording official for recordation or (2) in the case of an
original Mortgage that has been lost, a certificate by the
appropriate county recording office where such Mortgage is recorded
or from a title insurance company or escrow company indicating that
such original was lost and the copy of the original mortgage is a
true and correct copy;
(b) the original assignment to "JPMorgan Chase Bank, as Trustee,"
which assignment shall be in form and substance acceptable for
recording, or a copy certified by the Seller as a true and correct
copy of the original assignment which has been sent for recordation.
Subject to the foregoing, such assignments may, if permitted by law,
be by blanket assignments for Mortgage Loans covering Mortgaged
Properties situated within the same county. If the assignment is in
blanket form, a copy of the assignment shall be included in the
related individual Mortgage File;
(iii) the originals of any and all instruments that modify the terms and
conditions of the Mortgage Note, including but not limited to
modification, consolidation, extension and assumption agreements
including any adjustable rate mortgage (ARM) rider, if any;
(iv) the originals of all required intervening assignments, if any, with
evidence of recording thereon, and if such assignment was executed
pursuant to a power of attorney, a certified true copy of the power
of attorney certified by the recorder's office, with evidence of
recording thereon, or certified by a title insurance company or
escrow company to be a true copy thereof; PROVIDED, that if such
original assignment or power of attorney cannot be delivered with
evidence of recording thereon on or prior to the Closing Date
because of a delay caused by the public recording office where such
original assignment has been delivered for recordation or because
such original assignment has been lost, the Seller shall deliver or
cause to be delivered to the Purchaser (with a copy to the Trustee
(as defined in the Pooling and Servicing Agreement)) a true and
correct copy of such assignment, together with (a) in the case of a
delay caused by the public recording office, a certificate signed by
an Authorized Officer of the Seller stating that such original
assignment has been dispatched to the appropriate public recording
official for recordation or (b) in the case of an original
assignment that has been lost, a certificate by the appropriate
county recording office where such assignment is recorded or from a
title insurance company or escrow company indicating that such
original was lost and the copy of the original assignment is a true
and correct copy;
(v) the original mortgagee policy of title insurance (including, if
applicable, the endorsement relating to the negative amortization of
the Mortgage Loans) or in the event such original title policy is
unavailable, any one of an original title binder, an original
preliminary title report or an original title commitment or a copy
thereof certified by the title company with the original policy of
title insurance to follow within 180 days of the Closing Date;
-2-
EXHIBIT A
---------
INSTRUCTION LETTER
ABN AMRO Mortgage Corporation
000 Xxxxx XxXxxxx Xxxxxx, Xxxxx 000
Xxxxxxx, Xxxxxxxx 00000
________ __, 2003
ABN AMRO Mortgage Group, Inc.
0000 Xxxx Xxx Xxxxxx Xxxx
Xxxx, Xxxxxxxx 00000
Dear Ladies and Gentlemen:
Pursuant to the Mortgage Loan Purchase Agreement dated as of April 28, 2003
(the "PURCHASE AGREEMENT") between you and us, we have agreed to purchase from
you certain Mortgage Loans. All capitalized terms used herein and not otherwise
defined shall have the meanings set forth in the Purchase Agreement.
In order to facilitate these transactions, and for the purpose of
convenience only, we hereby authorize and direct you to:
Action Due Date
1. Endorse mortgage notes (or lost note one week prior to funding
affidavits and indemnities) to:
"Pay to the order of
JPMorgan Chase Bank
for the benefit of the Certificateholders
of ABN AMRO Mortgage Corporation
Series 2003-5, Attn: Corporate Trust
Department, 000 Xxxxxx Xxxxxx,
Xxxxxxx, XX 00000,
without recourse"
2. Assign mortgages to be recorded one week prior to funding
to JPMorgan Chase Bank
for the benefit of the Certificateholders
of ABN AMRO Mortgage Corporation
Series 2003-5:
3. Deliver to the Purchaser or its agent all two business days after funding
Mortgage Loan documents pertaining to each loan
4. Deliver to the Purchaser's servicer all one week prior to Servicing
Mortgage Loan servicing documents pertaining transfer date
to each loan
5. Provide lost mortgage note affidavits, one week prior to funding
certified copies of all missing mortgages,
and certified recorded copies of missing
intervening assignments
6. Mortgage Loan Schedule generated by Purchaser one day prior to funding
and agreed to by Seller
Sincerely,
ABN AMRO Mortgage Corporation
By: ______________________________
Name: ____________________________
Title: ___________________________
-2-
EXHIBIT B
---------
FORM OF ASSIGNMENT
------------------
ABN AMRO Mortgage Group, Inc., a Delaware corporation (the "SELLER"), in
exchange for $_______________ in hand paid and other good and valuable
consideration, hereby grants, bargains, sells, assigns, transfers, conveys, and
sets over to ABN AMRO Mortgage Corporation, a Delaware corporation (the
"PURCHASER"), all of the Seller's right, title, and interest in, to, and under
the mortgage loans listed on SCHEDULE 1 attached hereto, the mortgage notes
evidencing or relating to such mortgage loans, all mortgages, trust deeds, title
insurance policies, property insurance policies, chattel paper, loan guaranties,
loan accounts, surveys, instruments, certificates, and other documents
whatsoever evidencing or relating to such mortgage notes and mortgage loans, and
all books, ledgers, books of account, records, writings, data bases,
information, and computer software (and all documentation therefor or relating
thereto, and all licenses relating to or covering such computer software and/or
documentation), and all other property, rights, title, and interests whatsoever
relating to, used, or useful in connection with, or evidencing, embodying,
incorporating, or referring to, any of the foregoing (the "MORTGAGES"). The
Seller warrants to the Purchaser that the Seller is the owner of the Mortgages,
subject to no liens, claims, or encumbrances.
-1-
Dated: _____________, 2003 ABN AMRO Mortgage Group, Inc.
By: ________________________________
Name: _____________________________
Title: ____________________________
-0-
XXXXXXXXXXXX XX __________ __, 2003
ABN AMRO Mortgage Corporation
By: ________________________________
Name: _____________________________
Title: ____________________________
-3-
STATE OF ____________ )
)
COUNTY OF ____________ )
I, ______________, a Notary Public in and for the said County and State, do
hereby certify that ____________, personally known to me to be the same person
whose name is subscribed to the foregoing instrument as _______________ of
__________________, appeared before me this day in person and, being first
sworn, acknowledged that he signed and delivered the said instrument as his own
free and voluntary act, and as the free and voluntary act of said corporation as
the ___________ of ____________, a ____________, for the uses and purposes
therein set forth and that he was duly authorized to execute the said instrument
by the __________________ of said _________________.
Given under my hand and seal, this ____ day of ____________, 2003.
_________________________________
Notary Public
My commission expires:___________
-4-
EXHIBIT C
---------
FORM OF OFFICER'S CERTIFICATE
-----------------------------
ABN AMRO Mortgage Group, Inc.
I, Xxxxxx X. Xxxx, do hereby certify pursuant to SECTION 10(A) and (B)(III)
of the Purchase Agreement (as hereinafter defined) that I am the duly elected
Executive Vice President of ABN AMRO Mortgage Group, Inc. ("AAMGI" ), a Delaware
corporation, and further certify as follows:
1. Attached hereto as EXHIBIT "A" is a true and correct copy of the
articles of incorporation of AAMGI. There has been no amendment or other
document filed affecting the charter as of the date of this certification of
AAMGI, and no such amendment has been authorized.
2. Attached hereto as EXHIBIT "B" is a true and correct copy of the by-laws
of AAMGI as in full force and effect as of the date of this certification.
3. No proceedings looking toward merger, consolidation, liquidation, or
dissolution of AAMGI are pending or contemplated.
4. Each person who, as an officer or representative of AAMGI, signed, or
will sign (a) the Purchase Agreement, and (b) any other document delivered
pursuant thereto or on the date hereof in connection with the Mortgage Loan
Purchase Agreement, dated as of April 28, 2003 between AAMGI, as seller, and ABN
AMRO Mortgage Corporation, as Purchaser (the "PURCHASE AGREEMENT") was, at the
respective times of such signing and delivery, and is as of the date hereof duly
elected or appointed, qualified and acting as such officer or representative,
and the signatures of such persons appearing on such documents are their genuine
signatures.
5. Attached hereto as EXHIBIT "C" is a true, complete and correct copy of
the Resolutions of AAMGI's Board of Directors, which were duly adopted as of
_____ __, ____, and such Resolutions have not been amended, altered or repealed,
and remain in full force and effect without modification on the date hereof.
6. Attached hereto as EXHIBIT "D" is a Good Standing Certificate issued by
the Office of the Secretary of State of Delaware as of __________, ____. A
current Good Standing Certificate has been requested from the Office of the
Secretary of State of _________ and will be supplied when it is received.
7. AAMGI has performed all obligations and satisfied all conditions on its
part to be performed or satisfied under the Purchase Agreement on or prior to
the Closing Date and all of the representations and warranties of the Seller
under the Purchase Agreement are true and correct as of the date hereof and as
of the Closing Date, and no event has occurred which, with notice or passage of
time, or both, would constitute a default under the Purchase Agreement.
All capitalized terms used herein and not otherwise defined shall have the
meanings set forth in the Purchase Agreement.
IN WITNESS WHEREOF, I have hereunto signed my name.
Date: __________ __, ____
ABN AMRO Mortgage Group, Inc.
By: ________________________________
Name: ______________________________
Title: _____________________________
-2-
I, Xxxxxx X. Xxxxx, Assistant Secretary of ABN AMRO Mortgage Group, Inc., a
Delaware corporation, hereby certify that Xxxxxx X. Xxxx is the duly elected,
qualified and acting Executive Vice President of ABN AMRO Mortgage Group, Inc.
and that the signature appearing on the preceding page is his/her genuine
signature.
IN WITNESS WHEREOF, I have hereunto signed my name.
Date: __________ __, ____
ABN AMRO Mortgage Group, Inc.
By: ________________________________
Name: ______________________________
Title: _____________________________
-3-
[OPINION TO BE REVISED IN ACCORDANCE WITH
GENERAL COUNSEL'S FORM OF OPINION LETTER]
EXHIBIT D
---------
[OPINION OF SELLER'S IN-HOUSE COUNSEL
PURSUANT TO SECTION 10(B)(IV)]
-----------------
__________ __, 2003
ABN AMRO Mortgage Corporation
000 Xxxxx XxXxxxx Xxxxxx, Xxxxx 000
Xxxxxxx, Xxxxxxxx 00000
Re: ABN AMRO Mortgage Corporation Purchase of Mortgage Loans
--------------------------------------------------------
Ladies and Gentlemen:
As _______________ to ABN AMRO Mortgage Group, Inc., a Delaware Corporation
("SELLER"), I and attorneys working under my supervision have acted as counsel
to Seller in connection with the sale of Mortgage Loans by Seller to ABN AMRO
Mortgage Corporation (the "PURCHASER") pursuant to a Mortgage Loan Purchase
Agreement, dated as of April 28, 2003 (the "PURCHASE AGREEMENT"), between the
Purchaser and Seller. This opinion is being delivered to the Purchaser pursuant
to SECTION 10(B)(IV) of the Purchase Agreement. All capitalized terms not
otherwise defined herein have the meanings given them in the Purchase Agreement.
In rendering the opinions set forth below, we have examined and relied upon
originals or copies, certified or otherwise identified to our satisfaction, of
the charter and by-laws of Seller, the Purchase Agreement and such corporate
records, agreements or other instruments of Seller, and such certificates,
records and other documents, agreements and instruments, including, among other
things, certain documents delivered on the Closing Date, as we have deemed
necessary and proper as the basis for our opinions. In connection with such
examination, we have assumed the genuineness of all signatures, the authenticity
of all documents, agreements and instruments submitted to us as originals, the
conformity to original documents, agreements and instruments of all documents,
agreements and instruments submitted to us as copies or specimens, the
authenticity of the originals of such documents, agreements and instruments
submitted to us as copies or specimens, the conformity to executed original
documents of all documents submitted to us in draft and the accuracy of the
matters set forth in the documents we reviewed. We have also assumed that all
documents, agreements and instruments have been duly authorized, executed and
delivered by all parties thereto. As to any facts material to such opinions that
we did not independently establish or verify, we have relied upon statements and
representations of officers and other representatives
ABN AMRO Mortgage Corporation
__________ __, 200_
Page 2
of Seller as we have deemed necessary and proper as the basis for our opinions,
including, among other things, the representations and warranties of Seller in
the Purchase Agreement.
Based upon the foregoing, I am of the opinion that:
1. Seller is a ______________, duly organized, validly existing and in good
standing under the laws of _____________ and either is not required to be
qualified to do business under the laws of any states where such qualification
is necessary to transact the business contemplated by the Purchase Agreement, or
is qualified to do business under the laws of any states where such
qualification is necessary to transact the business contemplated by the Purchase
Agreement, and Seller is duly authorized and has full corporate power and
authority to transact the business contemplated by the Purchase Agreement.
2. The Purchase Agreement has been duly authorized, executed and delivered
by Seller and is a legal, valid and binding obligation of and is enforceable
against Seller in accordance with its terms, except that the enforceability
thereof may be subject to (A) bankruptcy, insolvency, receivership,
conservatorship, reorganization, moratorium or other laws, now or hereafter in
effect, relating to creditors' rights generally, (B) general principles of
equity (regardless of whether enforcement is sought in a proceeding in equity or
at law) and (C) limitations of public policy under applicable securities laws as
to rights of indemnity and contribution under the Purchase Agreement.
3. No consent, approval, authorization or order of any court or
supervisory, regulatory, administrative or governmental agency or body is
required for the execution, delivery and performance by Seller of or compliance
by Seller with the Purchase Agreement, the sale of the Mortgage Loans or the
consummation of the transactions contemplated by the Purchase Agreement.
4. Neither the execution and delivery by Seller of the Purchase Agreement,
nor the consummation by Seller of the transactions contemplated therein, nor the
compliance by Seller with the provisions thereof, will conflict with or result
in a breach of any of the terms, conditions or provisions of Seller's charter or
by-laws or board or shareholder's resolutions, or any agreement or instrument to
which Seller 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 Seller or its
property is subject, which, in any of the above cases, would materially and
adversely affect Seller's ability to perform its obligations under the Purchase
Agreement.
5. There is no action, suit, proceeding or investigation pending, or, to
the best of my knowledge, threatened against Seller which, either in any one
instance or in the aggregate, would draw into question the validity of the
Purchase Agreement or the Mortgage Loans or of any action taken or to be taken
in connection with the obligations of Seller contemplated therein, or which
-2-
ABN AMRO Mortgage Corporation
__________ __, 200_
Page 3
would be likely to materially impair the ability of Seller to perform under the
terms of the Purchase Agreement.
The Opinions expressed herein are limited to matters of federal and
Michigan law and do not purport to cover any matters as to which laws of any
other jurisdiction are applicable. Except as expressly provided herein, this
opinion is being furnished to you solely for your benefit in connection with the
purchase of the Mortgage Loans, and it is not to be used, circulated, quoted or
otherwise referred to for any purpose without my express written consent.
Sincerely,
ABN AMRO Mortgage Group, Inc.
By: __________________________
Title:
