ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT among GOLDMAN SACHS MORTGAGE COMPANY, as the Assignor GS MORTGAGE SECURITIES CORP., as the Assignee and NATIONAL CITY MORTGAGE CO., as the Servicer Dated as of August 1, 2006
EXECUTION
among
XXXXXXX
XXXXX MORTGAGE COMPANY,
as
the Assignor
GS
MORTGAGE SECURITIES CORP.,
as
the Assignee
and
NATIONAL
CITY MORTGAGE CO.,
as
the Servicer
Dated
as of
August
1, 2006
ASSIGNMENT,
ASSUMPTION AND RECOGNITION AGREEMENT (this “Assignment Agreement”) made this 1st
day of August, 2006, among National City Mortgage Co., an Ohio corporation,
as
seller and servicer (“Nat City” or the “Servicer”), GS Mortgage Securities
Corp., a Delaware corporation, as assignee (the “Assignee”), and Xxxxxxx Sachs
Mortgage Company, a New York limited partnership, as assignor (the
“Assignor”).
WHEREAS,
Nat City sold to the Assignor, on a servicing retained basis, certain mortgage
loans pursuant to (i) the Second Amended and Restated Flow Seller’s Warranties
and Servicing Agreement dated as of January 1, 2006, as amended (the “Flow
SWSA”), (ii) the related Warranty Xxxx of Sale, dated August 16, 2006 (the
“Warranty Xxxx of Sale”) and (iii) the related Trade Confirmation dated as of
June 8, 2006, each by and between the Assignor, as purchaser, and Nat City,
as
seller and servicer;
WHEREAS,
the Assignor, Nat City and Deutsche Bank National Trust Company (in such
capacity, the “Custodian”) have entered into a Custodial Agreement, dated as of
July 14, 2005 (the “Custodial Agreement”), pursuant to which the Custodian has
agreed to act on behalf of the Assignor and its successors and assigns, as
the
custodian of the Mortgage Loans;
WHEREAS,
pursuant to the Custodial Agreement, the Custodian has issued and delivered
to,
and in the name of, the Assignor, a custody receipt dated August 16, 2006 (the
“Custody Receipt”), evidencing the receipt and possession of the Mortgage Loans
by the Custodian on behalf of the Assignor pursuant to the Custodial
Agreement;
WHEREAS,
the Assignee has agreed on certain terms and conditions to purchase from the
Assignor certain of the mortgage loans (the “Mortgage Loans”), which Mortgage
Loans are subject to the provisions of the Flow SWSA and the Trade Confirmation
and are included in the Mortgage Loans listed in the mortgage loan schedule
attached to the Custody Receipt, and all of which mortgage loans are together
listed on the mortgage loan schedule attached as Exhibit 1 hereto (the “Mortgage
Loan Schedule”);
WHEREAS,
pursuant to a Master Servicing and Trust Agreement, dated as of August
1,
2006
(the
“Trust Agreement”), among GS Mortgage Securities Corp., as depositor, U.S. Bank,
National Association, as trustee (the “Trustee”) and custodian, JPMorgan Chase
Bank, National Association, as a custodian, Deutsche Bank National Trust
Company, as a custodian, and Xxxxx Fargo Bank, N.A., as securities administrator
and master servicer (in such capacity, the “Master Servicer”), the Assignee will
transfer the Mortgage Loans to the Trustee, together with the Assignee’s rights
in the Flow SWSA, the Trade Confirmation and the Custody Receipt related to
the
Mortgage Loans;
NOW
THEREFORE, in consideration of the mutual promises contained herein and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:
1. Assignment
and Assumption.
(a) The
Assignor hereby assigns to the Assignee all of its right, title and interest
in
and to the Mortgage Loans and the Flow SWSA and the Trade Confirmation, to
the
extent relating to the Mortgage Loans (other than the rights of the Assignor
to
indemnification thereunder), and the Assignee hereby assumes all of the
Assignor’s obligations under the Flow SWSA and the Trade Confirmation, to the
extent relating to the Mortgage Loans from and after the date hereof, and the
Servicer hereby acknowledges such assignment and assumption and hereby agrees
to
the release of the Assignor from any obligations under the Flow SWSA from and
after the date hereof, to the extent relating to the Mortgage Loans.
(b) The
Assignor represents and warrants to the Assignee that the Assignor has not
taken
any action which would serve to impair or encumber the Assignor’s ownership
interest in the Mortgage Loans since the date of the Flow SWSA or the Trade
Confirmation.
(c) The
Servicer and the Assignor shall have the right to amend, modify or terminate
each of the Flow SWSA and the Trade Confirmation without the joinder of the
Assignee with respect to mortgage loans not conveyed to the Assignee hereunder,
provided,
however,
that
such amendment, modification or termination shall not affect or be binding
on
the Assignee.
(d) The
Assignor hereby assigns to the Assignee, any rights of the Assignor under the
heading “Early Payment Default” in the Trade Confirmation, but only to the
extent such provision relates to the Mortgage Loans. The foregoing shall
constitute the Assignor’s consent to the assignment of the Trade Confirmation
(to the extent required by the terms of each Trade Confirmation).
(e) Notwithstanding
any provision of the Trade Confirmation to the contrary, in the event any
Mortgage Loan is repurchased by the Seller pursuant to the Early Payment Default
provisions of the Trade Confirmation, the “Repurchase Price” payable to the
Assignee shall be an amount equal to the sum of: (a) the outstanding principal
balance of such Mortgage Loan as of the date of such repurchase, (b) accrued
interest on such outstanding principal balance at the applicable Mortgage
Interest Rate from the date interest was last paid through the last day of
the
month in which such repurchase takes place, (c) the amount of any outstanding
advances owed to the Servicer, and (d) any reasonable costs and expenses
incurred by the Trustee or any Servicer, including without limitation costs
and
expenses incurred in the enforcement of the Company’s repurchase obligation
under the Trade Confirmation. It is hereby understood that the right to any
excess over such amount set forth in the definition of “Repurchase Price” set
forth in any Trade Confirmation is not being sold or assigned hereunder and
is
being retained by the Assignor.
(f) The
Trust
(including the Trustee and the Master 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 “Early Payment Default” provisions
of the Trade Confirmation including, without limitation, the enforcement of
the
repurchase requirements set forth therein, and shall be entitled to enforce
all
the obligations of the Company thereunder insofar as they relate to the Mortgage
Loans.
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2. Accuracy
of Warranties and Servicing Agreements.
The
Servicer and the Assignor represent and warrant to the Assignee that
(i) attached hereto as Exhibit
2
is a
true, accurate and complete copy of the Flow SWSA, (ii) attached hereto as
Exhibit 3 is a true, accurate and complete copy of Section N of the Trade
Confirmation, (iii) each of the Flow SWSA and the Trade Confirmation is in
full force and effect as of the date hereof, (iv) neither the Flow SWSA nor
the
Trade Confirmation has been amended or modified in any respect and (v) no notice
of termination has been given to the Servicer under the Flow SWSA or the Trade
Confirmation. The Servicer further represents and warrants that the
representations and warranties contained in Section 3.1 of the Flow SWSA are
true and correct on and as of August 25, 2006.
3. Recognition
of Purchaser.
From
and
after the date hereof, the Servicer shall note the transfer of the Mortgage
Loans to the Assignee in its books and records, shall recognize the Assignee
as
the owner of the Mortgage Loans and shall service the Mortgage Loans for the
benefit of the Assignee pursuant to the related Flow SWSA, the terms of which
are incorporated herein by reference. It is the intention of the Assignor,
Servicer and Assignee that the Flow SWSA shall be binding upon and inure to
the
benefit of the Servicer and the Assignee and their successors and
assigns.
4. Representations
and Warranties.
The
Assignee hereby represents and warrants to the Assignor as follows:
(a) The
Assignee represents and warrants that it is a sophisticated investor able to
evaluate the risks and merits of the transactions contemplated hereby, and
that
it has not relied in connection therewith upon any statements or representations
of the Assignor or the Servicer other than those contained in the Flow SWSA,
the
Trade Confirmation or this Assignment Agreement.
(b) The
Assignee hereto represents and warrants that it is duly and legally authorized
to enter into this Assignment Agreement and to perform its obligations hereunder
and under the Flow SWSA.
(c) The
Assignee hereto represents and warrants that this Assignment Agreement has
been
duly authorized, executed and delivered by it and (assuming due authorization,
execution and delivery thereof by each of the other parties hereto) constitutes
its legal, valid and binding obligation, 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 equitable principles (regardless of whether
such
enforcement is considered in a proceeding in equity or at law).
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5. Representations
and Warranties of the Assignor.
The
Assignor hereby represents and warrants to the Assignee as follows:
(a) The
Assignor has been duly organized and is validly existing as a limited
partnership in good standing under the laws of the State of New York with full
power and authority (corporate and other) to enter into and perform its
obligations under the Flow SWSA, the Trade Confirmation and this Assignment
Agreement.
(b) This
Assignment Agreement has been duly executed and delivered by the Assignor,
and,
assuming due authorization, execution and delivery by each of the other parties
hereto, constitutes a legal, valid, and binding agreement of the Assignor,
enforceable against it in accordance with its terms, subject to bankruptcy,
insolvency, reorganization, moratorium, or other similar laws affecting
creditors’ rights generally and to general principles of equity regardless of
whether enforcement is sought in a proceeding in equity or at law.
(c) The
execution, delivery and performance by the Assignor of this Assignment Agreement
and the consummation of the transactions contemplated hereby do not require
the
consent or approval of, the giving of notice to, the registration with, or
the
taking of any other action in respect of, any state, federal or other
governmental authority or agency, except such as has been obtained, given,
effected or taken prior to the date thereof.
(d) The
execution and delivery of this Assignment Agreement have been duly authorized
by
all necessary partnership action on the part of the Assignor; neither the
execution and delivery by the Assignor of this Assignment Agreement, nor the
consummation by the Assignor of the transactions herein contemplated, nor
compliance by the Assignor with the provisions hereof, will conflict with or
result in a breach of, or constitute a default under, any of the provisions
of
the governing documents of the Assignor or any law, governmental rule or
regulation or any material judgment, decree or order binding on the Assignor
or
any of its properties, or any of the provisions of any material indenture,
mortgage, deed of trust, contract or other instrument to which the Assignor
is a
party or by which it is bound.
(e) There
are
no actions, suits or proceedings pending or, to the knowledge of the Assignor,
threatened, before or by any court, administrative agency, arbitrator or
governmental body (A) with respect to any of the transactions contemplated
by
this Assignment Agreement or (B) with respect to any other matter that in the
judgment of the Assignor will be determined adversely to the Assignor and will
if determined adversely to the Assignor materially adversely affect its ability
to perform its obligations under this Assignment Agreement.
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(f) Except
for the sale to the Assignee, the Assignor has not assigned or pledged any
Mortgage Note or the related Mortgage or any interest or participation
therein.
(g) The
Assignor has not satisfied, canceled, or subordinated in whole or in part,
or
rescinded the Mortgage, and the Assignor has not released the Mortgaged Property
from the lien of the Mortgage, in whole or in part, nor has the Assignor
executed an instrument that would effect any such release, cancellation,
subordination, or rescission. The Assignor has not released any Mortgagor,
in
whole or in part, except in connection with an assumption agreement or other
agreement approved by the related federal insurer, to the extent such approval
was required.
(h) With
respect to each Mortgage Loan, the representations and warranties contained
in
Section 3.2 of the Flow SWSA, to the extent they relate to matters arising
on or
after the related Closing Date (as defined in the Flow SWSA), are true and
correct as of the date of this Assignment Agreement. For purposes of making
the
representations and warranties contemplated in the this paragraph, each
reference in Section 3.2 of the Flow SWSA to (i) the “Cut-off Date” shall be
deemed to be a reference to August 1, 2006, (ii) the “Mortgage Loan Schedule”
and shall be deemed to be a reference to Exhibit 1 hereto and (iii) the “Closing
Date” shall be deemed to be a reference to August 25, 2006.
It
is
understood and agreed that the representations and warranties set forth in
this
Section 5 shall survive delivery of the respective Mortgage Files to the
Custodian and shall inure to the benefit of the Assignee and its assigns
notwithstanding any restrictive or qualified endorsement or assignment. Upon
the
discovery by the Assignor or the Assignee and its assigns of a breach of the
foregoing representations and warranties, the party discovering such breach
shall give prompt written notice to the other parties to this Assignment
Agreement, and in no event later than two (2) Business Days from the date of
such discovery. It is understood and agreed that the obligations of the Assignor
set forth in Section 6 below to repurchase a Mortgage Loan constitute the sole
remedies available to the Assignee and its assigns on their behalf respecting
a
breach of the representations and warranties contained in this Section 5. It
is
further understood and agreed that the Assignor shall be deemed not to have
made
the representations and warranties in this Section 5 with respect to, and to
the
extent of, representations and warranties made, as to the matters covered in
this Section 5, by
the
Servicer in the Flow SWSA (or
any
officer’s certificate delivered pursuant thereto).
It
is
understood and agreed that the Assignor has made no representations or
warranties to the Assignee other than those contained in this Section 5, and
no
other affiliate of the Assignor has made any representations or warranties
of
any kind to the Assignee.
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6. Repurchase
of Mortgage Loans.
Upon
discovery or notice of any breach by the Assignor of any representation,
warranty, or covenant under this Assignment Agreement that materially and
adversely affects the value of any Mortgage Loan or the interest of the Assignee
therein (it being understood that any such defect or breach shall be deemed
to
have materially and adversely affected the value of the related Mortgage Loan
or
the interest of the Assignee therein if the Assignee incurs a loss as a result
of such defect or breach), the Assignee promptly shall request that the Assignor
cure such breach and, if the Assignor does not cure such breach in all material
respects within sixty (60) days from the date on which it is notified of the
breach, the Assignee may enforce the Assignor’s obligation hereunder to purchase
such Mortgage Loan from the Assignee. Notwithstanding the foregoing, however,
if
such breach is a Qualification Defect, such cure or repurchase must take place
within forty-five (45) days of the Defect Discovery Date.
In
the
event the Servicer has breached a representation or warranty under the Flow
SWSA
that is substantially identical to a representation or warranty breached by
the
Assignor hereunder, the Assignee shall first proceed against the Servicer.
If
the Servicer does not within sixty (60) days after notification of the breach,
take steps to cure such breach (which may include certifying to progress made
and requesting an extension of the time to cure such breach, as permitted under
the Flow SWSA) or purchase, or substitute for the Mortgage Loan, the Assignee
shall be entitled to enforce the obligations of the Assignor hereunder to cure
such breach or to repurchase the Mortgage Loan from the Trust. In such event,
the Assignor shall succeed to the rights of the Assignee to enforce the
obligations of the Servicer to cure such breach or repurchase such Mortgage
Loan
under the terms of the related Flow SWSA with respect to such Mortgage
Loan.
Except
as
specifically set forth herein, the Assignee shall have no responsibility to
enforce any provision of this Assignment Agreement, to oversee compliance
hereof, or to take notice of any breach or default thereof.
7. Continuing
Effect.
Except
as
contemplated hereby, the Flow SWSA shall remain in full force and effect in
accordance with its terms.
8. Governing
Law.
THIS
ASSIGNMENT AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE
LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW
PROVISIONS (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND
THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED
IN
ACCORDANCE WITH SUCH LAWS.
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9. Notices.
Any
notices or other communications permitted or required hereunder or under the
Flow SWSA shall be in writing and shall be deemed conclusively to have been
given if personally delivered at or mailed by registered mail, postage prepaid,
and return receipt requested or transmitted by telex, telegraph or telecopier
and confirmed by a similar mailed writing, to: (i) in the case of the Servicer,
National
City Mortgage Co., 0000 Xxxxxxx Xxxxx, Xxxxxxxxxx, XX 00000,
Attention:
Xxxx
Xxxxx, Deal Manager,
Telecopy: (000)
000-0000, or such address as may hereafter be furnished by the Servicer;
(ii)
in
the case of the Assignee, GS Mortgage Securities Corp., 00 Xxxxx Xxxxxx, Xxx
Xxxx, Xxx Xxxx 00000, Attention: Xxxxxxxx Xxxx, Telecopier No.: (000) 000-0000,
or such other address as may hereafter be furnished by the Assignee, and (iii)
in the case of the Assignor, 00 Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000,
Attention: Xxxxx Xxxxxxxx, Telecopier: (000) 000-0000, or such other address
as
may hereafter be furnished by the Assignor.
10. Counterparts.
This
Assignment
Agreement
may be executed in counterparts, each of which when so executed shall be deemed
to be an original and all of which when taken together shall constitute one
and
the same instrument.
11. Definitions.
Any
capitalized term used but not defined in this Assignment Agreement has the
same
meaning as in the Flow SWSA.
[Signature
Page to Follow]
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IN
WITNESS WHEREOF, the parties hereto have executed this Assignment Agreement
the
day and year first above written.
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ASSIGNEE:
GS
MORTGAGE SECURITIES CORP.
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| By: | ||
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Name:
Title:
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ASSIGNOR:
XXXXXXX
SACHS MORTGAGE
COMPANY
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| By: | Xxxxxxx
Xxxxx Real Estate Funding
Corp.,
its General Partner
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| By: | ||
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Name:
Title
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SERVICER:
NATIONAL
CITY MORTGAGE CO.
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| By: | ||
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Name:
Title:
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EXHIBIT
1
Mortgage
Loan Schedule
EXHIBIT
2
Flow
SWSA
EXHIBIT
3
Section
N
of Trade Confirmation
N. Early
Payment Default:
In
the
event that the first two scheduled payments of principal and interest (or
interest in the case of an interest only loan) to be made by the mortgagor
on
the first or second due date, as applicable, after the Closing Date with respect
to any Mortgage Loan is not paid on or prior to such second due date, the Seller
shall repurchase such Mortgage Loan within thirty (30) days of the Purchaser’s
request at a price equal to the Repurchase Price. The Purchaser shall request
any repurchase pursuant to this paragraph on or before the thirtieth
(30th)
day
from the date that the Purchaser receives notice of the related early payment
default (which notice may include receipt of a monthly remittance advice
reflecting such early payment default).
