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CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.,
Depositor,
DLJ MORTGAGE CAPITAL, INC.,
Seller,
XXXXX FARGO BANK, N.A.,
Master Servicer, Servicer, Back-Up Servicer and Trust Administrator,
SELECT PORTFOLIO SERVICING, INC.,
Servicer and Special Servicer,
and
U.S. BANK NATIONAL ASSOCIATION,
Trustee
POOLING AND SERVICING AGREEMENT
DATED AS OF FEBRUARY 1, 2006
relating to
ADJUSTABLE RATE MORTGAGE TRUST 2006-1
ADJUSTABLE RATE MORTGAGE-BACKED PASS-THROUGH CERTIFICATES,
SERIES 2006-1
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TABLE OF CONTENTS
Page
ARTICLE I DEFINITIONS.............................................................................................9
ARTICLE II CONVEYANCE OF MORTGAGE LOANS; REPRESENTATIONS AND WARRANTIES..........................................63
SECTION 2.01. Conveyance of Trust Fund..............................................................63
SECTION 2.02. Acceptance by the Trustee.............................................................67
SECTION 2.03. Representations and Warranties of the Seller, Master Servicer and Servicers...........70
SECTION 2.04. Representations and Warranties of the Depositor as to the Mortgage Loans..............72
SECTION 2.05. Delivery of Opinion of Counsel in Connection with Substitutions.......................72
SECTION 2.06. Issuance of Certificates..............................................................72
SECTION 2.07. REMIC Provisions......................................................................73
SECTION 2.08. Covenants of the Master Servicer and each Servicer....................................78
ARTICLE III ADMINISTRATION AND SERVICING OF MORTGAGE LOANS.......................................................79
SECTION 3.01. Servicers to Service Mortgage Loans...................................................79
SECTION 3.02. Subservicing; Enforcement of the Obligations of Sub-Servicers.........................81
SECTION 3.03. Master Servicing by Master Servicer...................................................83
SECTION 3.04. Trustee to Act as Master Servicer or Servicer.........................................83
SECTION 3.05. Collection of Mortgage Loans; Collection Accounts; Certificate Account................84
SECTION 3.06. Establishment of and Deposits to Escrow Accounts; Permitted Withdrawals from Escrow Accounts;
Payments of Taxes, Insurance and Other Charges........................................87
SECTION 3.07. Access to Certain Documentation and Information Regarding the Non-Designated Mortgage Loans;
Inspections...........................................................................89
SECTION 3.08. Permitted Withdrawals from the Collection Accounts and Certificate Account............89
SECTION 3.09. Maintenance of Hazard Insurance; Mortgage Impairment Insurance and Mortgage Guaranty Insurance
Policy; Claims; Restoration of Mortgaged Property.....................................91
SECTION 3.10. Enforcement of Due on Sale Clauses; Assumption Agreements.............................94
SECTION 3.11. Realization Upon Defaulted Mortgage Loans; Repurchase of Certain Mortgage Loans.......96
SECTION 3.12. Trustee and Trust Administrator to Cooperate; Release of Mortgage Files...............99
SECTION 3.13. Documents, Records and Funds in Possession of a Servicer to be Held for the Trust....100
SECTION 3.14. Servicing Fee; Indemnification of Master Servicer....................................101
SECTION 3.15. Access to Certain Documentation......................................................101
SECTION 3.16. Maintenance of Fidelity Bond and Errors and Omissions Insurance......................102
SECTION 3.17. Special Serviced Mortgage Loans......................................................102
SECTION 3.18. Indemnification of Servicers and Master Servicer.....................................103
SECTION 3.19. Notification of Adjustments..........................................................103
SECTION 3.20. Designated Mortgage Loans............................................................103
SECTION 3.21. Assigned Prepayment Premiums.........................................................105
ARTICLE IV PAYMENTS AND STATEMENTS TO CERTIFICATEHOLDERS........................................................106
SECTION 4.01. Priorities of Distribution...........................................................106
SECTION 4.02. Allocation of Losses.................................................................115
SECTION 4.03. Recoveries...........................................................................117
SECTION 4.04. Reserved.............................................................................117
SECTION 4.05. Monthly Statements to Certificateholders.............................................117
SECTION 4.06. Servicer to Cooperate................................................................118
SECTION 4.07. Cross-Collateralization; Adjustments to Available Funds..............................118
SECTION 4.08. Reserved.............................................................................119
SECTION 4.09. Reserved.............................................................................119
SECTION 4.10. Group 6 Interest Rate Cap Account....................................................119
SECTION 4.11. Supplemental Interest Trust..........................................................121
SECTION 4.12. Rights of Swap Counterparty..........................................................123
SECTION 4.13. Replacement Swap Counterparty........................................................123
ARTICLE V ADVANCES BY THE MASTER SERVICER AND SERVICERS.........................................................124
SECTION 5.01. Advances by the Master Servicer and Servicers........................................124
ARTICLE VI THE CERTIFICATES.....................................................................................125
SECTION 6.01. The Certificates.....................................................................125
SECTION 6.02. Registration of Transfer and Exchange of Certificates................................126
SECTION 6.03. Mutilated, Destroyed, Lost or Stolen Certificates....................................131
SECTION 6.04. Persons Deemed Owners................................................................131
SECTION 6.05. Access to List of Certificateholders' Names and Addresses............................131
SECTION 6.06. Maintenance of Office or Agency......................................................131
SECTION 6.07. Book Entry Certificates..............................................................132
SECTION 6.08. Notices to Clearing Agency...........................................................132
SECTION 6.09. Definitive Certificates..............................................................133
ARTICLE VII THE DEPOSITOR, THE SELLER, THE MASTER SERVICER, THE SERVICERS AND THE SPECIAL SERVICER.............134
SECTION 7.01. Liabilities of the Seller, the Depositor, the Master Servicer, the Back-Up Servicer, the
Servicers and the Special Servicer...................................................134
SECTION 7.02. Merger or Consolidation of the Seller, the Depositor, the Back-Up Servicer, the Master
Servicer, the Servicers or the Special Servicer......................................134
SECTION 7.03. Limitation on Liability of the Seller, the Depositor, the Master Servicer, the Back-Up
Servicer, the Servicers, the Special Servicer and Others.............................135
SECTION 7.04. Master Servicer and Servicer Not to Resign; Transfer of Servicing....................135
SECTION 7.05. Master Servicer, Seller and Servicers May Own Certificates...........................136
SECTION 7.06. Termination of Duties of the Back-Up Servicer........................................136
ARTICLE VIII DEFAULT............................................................................................137
SECTION 8.01. Events of Default....................................................................137
SECTION 8.02. Master Servicer or Trust Administrator to Act; Appointment of Successor..............139
SECTION 8.03. Notification to Certificateholders...................................................141
SECTION 8.04. Waiver of Events of Default..........................................................141
ARTICLE IX CONCERNING THE TRUSTEE...............................................................................142
SECTION 9.01. Duties of Trustee....................................................................142
SECTION 9.02. Certain Matters Affecting the Trustee................................................143
SECTION 9.03. Trustee Not Liable for Certificates or Mortgage Loans................................144
SECTION 9.04. Trustee May Own Certificates.........................................................145
SECTION 9.05. Trustee's Fees and Expenses..........................................................145
SECTION 9.06. Eligibility Requirements for Trustee.................................................145
SECTION 9.07. Resignation and Removal of Trustee...................................................146
SECTION 9.08. Successor Trustee....................................................................146
SECTION 9.09. Merger or Consolidation of Trustee...................................................147
SECTION 9.10. Appointment of Co-Trustee or Separate Trustee........................................147
SECTION 9.11. Office of the Trustee................................................................148
ARTICLE X CONCERNING THE TRUST ADMINISTRATOR....................................................................149
SECTION 10.01. Duties of Trust Administrator........................................................149
SECTION 10.02. Certain Matters Affecting the Trust Administrator....................................150
SECTION 10.03. Trust Administrator Not Liable for Certificates or Mortgage Loans....................152
SECTION 10.04. Trust Administrator May Own Certificates.............................................152
SECTION 10.05. Trust Administrator's Fees and Expenses..............................................152
SECTION 10.06. Eligibility Requirements for Trust Administrator.....................................153
SECTION 10.07. Resignation and Removal of Trust Administrator.......................................153
SECTION 10.08. Successor Trust Administrator........................................................154
SECTION 10.09. Merger or Consolidation of Trust Administrator.......................................155
SECTION 10.10. Appointment of Co-Trust Administrator or Separate Trust Administrator................155
SECTION 10.11. Office of the Trust Administrator....................................................156
SECTION 10.12. Tax Return...........................................................................156
SECTION 10.13. Determination of Certificate Index...................................................156
ARTICLE XI TERMINATION..........................................................................................157
SECTION 11.01. Termination upon Liquidation or Purchase of all Mortgage Loans.......................157
SECTION 11.02. Determination of the Terminating Entity..............................................159
SECTION 11.03. Procedure Upon Optional Termination or Terminating Auction Sale......................160
SECTION 11.04. Additional Termination Requirements..................................................161
ARTICLE XII MISCELLANEOUS PROVISIONS............................................................................163
SECTION 12.01. Amendment............................................................................163
SECTION 12.02. Recordation of Agreement; Counterparts...............................................165
SECTION 12.03. Governing Law........................................................................165
SECTION 12.04. Intention of Parties.................................................................166
SECTION 12.05. Notices..............................................................................167
SECTION 12.06. Severability of Provisions...........................................................167
SECTION 12.07. Limitation on Rights of Certificateholders...........................................167
SECTION 12.08. Certificates Nonassessable and Fully Paid............................................168
SECTION 12.09. Protection of Assets.................................................................168
SECTION 12.10. Non-Solicitation.....................................................................169
ARTICLE XIII EXCHANGE ACT REPORTING.............................................................................169
SECTION 13.01. Commission Reporting.................................................................169
SECTION 13.02. Form 10-D Reporting..................................................................169
SECTION 13.03. Form 10-K Reporting..................................................................170
SECTION 13.04. Form 8-K Reporting...................................................................171
SECTION 13.05. Delisting; Amendment; Late Filing of Reports.........................................172
SECTION 13.06. Annual Statements of Compliance......................................................173
SECTION 13.07. Annual Assessments of Compliance.....................................................173
SECTION 13.08. Accountant's Attestation.............................................................174
SECTION 13.09. Xxxxxxxx-Xxxxx Certification.........................................................175
SECTION 13.10. Indemnification......................................................................175
ARTICLE XIV SPS AND THE MASTER SERVICER.........................................................................177
SECTION 14.01. Reports and Notices..................................................................177
SECTION 14.02. Master Servicer's Oversight With Respect to the SPS Mortgage Loans...................178
SECTION 14.03. Termination..........................................................................178
SECTION 14.04. Liability and Indemnification........................................................178
SECTION 14.05. Confidentiality......................................................................179
EXHIBITS
Exhibit A: Form of Class A Certificate..........................................................A-1
Exhibit B: Form of Class M Certificate..........................................................B-1
Exhibit C: Form of Class B Certificate..........................................................C-1
Exhibit D-1: Form of Class AR Certificate.......................................................D-1-1
Exhibit D-2: Form of Class AR-L Certificate.....................................................D-2-1
Exhibit E: Form of Class P Certificate..........................................................E-1
Exhibit F: Form of Class X Certificate..........................................................F-1
Exhibit G: Form of Reverse of Certificates......................................................G-1
Exhibit H-1: Form of Servicer Information.......................................................H-1-1
Exhibit H-2: Form of Realized Loss Calculation..................................................H-2-1
Exhibit I-1: Form of Trust Receipt and Initial Certification....................................I-1-1
Exhibit I-2: Form of Trust Receipt and Subsequent Certification.................................I-2-1
Exhibit J: Form of Trust Receipt and Final Certification........................................J-1
Exhibit K: Form of Request for Release..........................................................K-1
Exhibit L: Form of Transferor Certificate.......................................................L-1
Exhibit M-1: Form of Investment Letter..........................................................M-1-1
Exhibit M-2: Form of Rule 144A Letter...........................................................M-2-1
Exhibit M-3: Form of Regulation S Letter........................................................M-3-1
Exhibit N: Form of Investor Transfer Affidavit and Agreement....................................N-1
Exhibit O: Form of Transfer Certificate.........................................................O-1
Exhibit P: Form of SPS Mortgage Loans Report..................................................P-1-1
Exhibit Q: Form of Foreclosure Settlement Statement.............................................Q-1
Exhibit R: Relevant Servicing Criteria..........................................................R-1
Exhibit S: Additional Form 10-D Disclosure......................................................S-1
Exhibit T: Form of Monthly Statement to Certificateholders......................................T-1
Exhibit U: Form 8-K Disclosure Information .....................................................U-1
Exhibit V: Form of Annual Certification ........................................................V-1
Exhibit W: Additional Disclosure Notification ..................................................W-1
Exhibit Y: Additional Form 10-K Disclosure .....................................................Y-1
Exhibit Z: Form of Certification Regarding Substitution of Defective Mortgage Loans ...........Z-1
SCHEDULES
Schedule I: Mortgage Loan Schedule...............................................................I-1
Schedule IIA: Representations and Warranties of Seller - DLJMC...................................IIA-1
Schedule IIB: Representations and Warranties of Master Servicer - Xxxxx Fargo....................IIB-1
Schedule IIC: Representations and Warranties of Servicer and Special Servicer - SPS..............IIC-1
Schedule IID: Representations and Warranties of Servicer - Xxxxx Fargo...........................IID-1
Schedule III: Representations and Warranties of DLJMC - Mortgage Loans...........................III-1
APPENDICES
Appendix A: Calculation of Class Y Principal Reduction Amounts .........................Appendix A-1
THIS POOLING AND SERVICING AGREEMENT, dated as of February 1, 2006, is hereby executed by and among CREDIT SUISSE
FIRST BOSTON MORTGAGE SECURITIES CORP., as depositor (the "Depositor"), DLJ MORTGAGE CAPITAL, INC. ("DLJMC"), as seller (in such
capacity, the "Seller"), XXXXX FARGO BANK, N.A., as master servicer (in such capacity, the "Master Servicer"), as a servicer (in such
capacity, a "Servicer"), as back-up servicer (in such capacity, the "Back-Up Servicer") and as trust administrator (in such capacity,
the "Trust Administrator"), SELECT PORTFOLIO SERVICING, INC. ("SPS"), as a servicer (in such capacity, a "Servicer"), and as special
servicer (in such capacity, the "Special Servicer"), and U.S. BANK NATIONAL ASSOCIATION, as trustee (in such capacity, the
"Trustee"). Capitalized terms used in this Agreement and not otherwise defined will have the meanings assigned to them in Article I
below.
PRELIMINARY STATEMENT
The Depositor is the owner of the Trust Fund (other than the Trust's rights under the Group 6 Interest Rate Cap
Agreement and rights to payments from the Supplemental Interest Account) that is hereby conveyed to the Trustee in return for the
Certificates. The Trust Fund (exclusive of any entitlement to Assigned Prepayment Premiums, the Group 6 Interest Rate Cap Agreement,
the assets held in the Group 6 Interest Rate Cap Account, and rights to payments from the Supplemental Interest Account) for federal
income tax purposes shall consist of three REMICs (referred to as "REMIC I," "REMIC II" and "REMIC III").
REMIC I
As provided herein, the Trust Administrator will make an election to treat the segregated pool of assets consisting
of the Group 1, Group 2, Group 3, Group 4 and Group 5 Mortgage Loans and certain other related assets (exclusive of any entitlement
to Assigned Prepayment Premiums) subject to this Agreement as a real estate mortgage investment conduit (a "REMIC") for federal
income tax purposes, and such segregated pool of assets will be designated as "REMIC I." Component I of the Class AR-L Certificates
will represent the sole Class of "residual interests" in REMIC I for purposes of the REMIC Provisions (as defined herein) under
federal income tax law. The following table irrevocably sets forth the designation, remittance rate (the "Uncertificated REMIC I
Pass-Through Rate") and initial Uncertificated Principal Balance for each of the "regular interests" in REMIC I (the "REMIC I Regular
Interests") and the Class Principal Balance of Component I of the Class AR-L Certificates. The "latest possible maturity date"
(determined solely for purposes of satisfying Treasury regulation Section 1.860G 1(a)(4)(iii)) for each REMIC I Regular Interest
shall be the Maturity Date. None of the REMIC I Regular Interests will be certificated.
Class Designation for Initial Uncertificated
each REMIC I Regular ----------------------
Interest and Uncertificated Principal Balance or
Component I of the Type of REMIC I Class Principal
Class AR-L Certificates Interest Pass-Through Rate Balance Maturity Date*
Class Y-1 Regular Variable(1) $ 82,055.57 March 2036
Class Y-2 Regular Variable(2) $ 117,398.99 March 2036
Class Y-3 Regular Variable(3) $ 129,390.52 March 2036
Class Y-4 Regular Variable(4) $ 120,008.04 March 2036
Class Y-5 Regular Variable(5) $ 86,165.52 March 2036
Class Z-1 Regular Variable(1) $ 164,029,078.91 March 2036
Class Z-2 Regular Variable(2) $ 234,680,575.09 March 2036
Class Z-3 Regular Variable(3) $ 258,658,327.52 March 2036
Class Z-4 Regular Variable(4) $ 239,902,264.88 March 2036
Class Z-5 Regular Variable(5) $ 172,249,329.51 March 2036
Component I of the Residual Variable(1) March 2036
Class AR-L
------------------------
* The Distribution Date in the specified month, which is the month following the month the latest maturing
Mortgage Loan in the related Loan Group matures. For federal income tax purposes, for each Class of REMIC I
Regular Interests, the "latest possible maturity date" shall be the Maturity Date.
(1) Interest distributed to REMIC I Regular Interests Y-1 and Z-1 and Component I of the Class AR-L Certificates
on each Distribution Date will have accrued at the Net WAC Rate for Loan Group 1 applicable for such
Distribution Date on the applicable Uncertificated Principal Balance or Class Principal Balance outstanding
immediately before such Distribution Date.
(2) Interest distributed to REMIC I Regular Interests Y-2 and Z-2 on each Distribution Date will have accrued at
the Net WAC Rate for Loan Group 2 applicable for such Distribution Date on the applicable Uncertificated
Principal Balance outstanding immediately before such Distribution Date.
(3) Interest distributed to REMIC I Regular Interests Y-3 and Z-3 on each Distribution Date will have accrued at
the Net WAC Rate for Loan Group 3 applicable for such Distribution Date on the applicable Uncertificated
Principal Balance outstanding immediately before such Distribution Date.
(4) Interest distributed to REMIC I Regular Interests Y-4 and Z-4 on each Distribution Date will have accrued at
the Net WAC Rate for Loan Group 4 applicable for such Distribution Date on the applicable Uncertificated
Principal Balance outstanding immediately before such Distribution Date.
(5) Interest distributed to REMIC I Regular Interests Y-5 and Z-5 on each Distribution Date will have accrued at
the Net WAC Rate for Loan Group 5 applicable for such Distribution Date on the applicable Uncertificated
Principal Balance outstanding immediately before such Distribution Date.
REMIC II
As provided herein, the Trust Administrator will make an election to treat the segregated pool of assets consisting of the
Group 6 Mortgage Loans and certain other related assets (exclusive of any entitlement to Assigned Prepayment Premiums, the Group 6
Interest Rate Cap Agreement, the assets held in the Group 6 Interest Rate Cap Account, and rights to payments from the Supplemental
Interest Account) subject to this Agreement as a real estate mortgage investment conduit (a "REMIC") for federal income tax purposes,
and such segregated pool of assets will be designated as "REMIC II." Component II of the Class AR-L Certificates will represent the
sole Class of "residual interests" in REMIC II for purposes of the REMIC Provisions (as defined herein) under federal income tax
law. The following table irrevocably sets forth the designation, remittance rate (the "Uncertificated REMIC II Pass-Through Rate")
and initial Uncertificated Principal Balance for each of the "regular interests" in REMIC II (the "REMIC II Regular Interests"). The
"latest possible maturity date" (determined solely for purposes of satisfying Treasury regulation Section 1.860G-1(a)(4)(iii)) for
each REMIC II Regular Interest shall be the Maturity Date. None of the REMIC II Regular Interests will be certificated.
Class Designation for Initial Uncertificated
each REMIC II Regular ----------------------
Interest and Uncertificated Principal Balance or
Component II of the Type of REMIC II Class Principal
Class AR-L Certificates Interest Pass-Through Rate Balance Maturity Date*
Class LT1 Regular Variable(1) $ 279,423,924.18 March 2036
Class LT2 Regular Variable(1) $ 8,742.22 March 2036
Class LT3 Regular 0.00% $ 19,204.89 March 2036
Class LT4 Regular Variable(2) $ 19,204.89 March 2036
Component II of the Residual N/A March 2036
Class AR-L
------------------------
* The Distribution Date in the specified month, which is the month following the month the latest maturing
Mortgage Loan in the related Loan Group matures. For federal income tax purposes, for each Class of
REMIC II Regular Interests, the "latest possible maturity date" shall be the Maturity Date.
(1) Interest distributed to REMIC II Regular Interests LT1 and LT2 on each Distribution Date will have accrued
at the weighted average of the Net Mortgage Rates for the Group 6 Loans as of the second preceding Due Date
on the applicable Uncertificated Principal Balance outstanding immediately before such Distribution Date
(2) Interest distributed to REMIC II Regular Interest LT4 on each Distribution Date will have accrued at twice
the weighted average of the Net Mortgage Rates for the Group 6 Loans as of the second preceding Due Date on
the applicable Uncertificated Principal Balance outstanding immediately before such Distribution Date.
REMIC III
As provided herein, the Trust Administrator will elect to treat the segregated pool of assets consisting of the
REMIC I Regular Interests and 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 AR Certificates will represent the sole Class of "residual interests" in REMIC III
for purposes of the REMIC Provisions under federal income tax law. The following table and the footnotes that follow irrevocably
sets forth the designation, Pass-Through Rate, aggregate Initial Class Principal Balance, and certain other features for each
Class of Certificates comprising the interests representing "regular interests" in REMIC III (the "REMIC III Regular Interests") and
the Class AR Certificates. The "latest possible maturity date" (determined solely for purposes of satisfying Treasury Regulation
Section 1.860G-1(a)(4)(iii)) for each Class of REMIC III Regular Certificates shall be the Maturity Date.
Integral
Class Multiples
Principal Pass-Through Minimum in Excess
Class Balance Rate (per annum) Denomination of Minimum
Class 1-A-1 $ 53,000,000.00 Variable(1) $25,000 $1
Class 1-A-2 $ 92,270,000.00 Variable(1) $25,000 $1
Class 1-A-3 $ 7,107,000.00 Variable(1) $25,000 $1
Class 2-A-1 $ 202,420,000.00 Variable(2) $25,000 $1
Class 2-A-2 $ 15,590,000.00 Variable(2) $25,000 $1
Class 3-A-1 $ 165,000,000.00 Variable(3) $25,000 $1
Class 3-A-2 $ 30,038,000.00 Variable(3) $25,000 $1
Class 3-A-3 $ 42,010,000.00 Variable(3) $25,000 $1
Class 3-A-4 $ 3,236,000.00 Variable(3) $25,000 $1
Class 4-A-1 $ 206,925,000.00 Variable(4) $25,000 $1
Class 4-A-2 $ 15,935,000.00 Variable(4) $25,000 $1
Class 5-A-1 $ 148,572,000.00 Variable(5) $25,000 $1
Class 5-A-2 $ 11,442,000.00 Variable(5) $25,000 $1
Class 6-A-1 $ 228,635,000.00 Variable(6) $25,000 $1
Class 6-A-2 $ 25,405,000.00 Variable(7) $25,000 $1
Class 6-M-1 $ 12,855,000.00 Variable(8) $25,000 $1
Class 6-M-2 $ 6,430,000.00 Variable(9) $25,000 $1
Class 6-M-3 $ 4,750,000.00 Variable(10) $25,000 $1
Class 6-M-4 $ 1,396,000.00 Variable(11) $25,000 $1
Class C-B-1 $ 18,727,000.00 Variable(12) $25,000 $1
Class C-B-2 $ 16,051,000.00 Variable(12) $25,000 $1
Class C-B-3 $ 10,166,000.00 Variable(12) $25,000 $1
Class C-B-4 $ 11,236,000.00 Variable(12) $25,000 $1
Class C-B-5 $ 2,675,000.00 Variable(12) $25,000 $1
Class C-B-6 $ 1,605,000.00 Variable(12) $25,000 $1
Class C-B-7 $ 4,815,000.00 Variable(12) $25,000 $1
Class C-B-8 $ 6,955,000.00 Variable(12) $25,000 $1
Class C-B-9 $ 4,279,544.55 Variable(12) $25,000 $1*
Class 6-X $ 76.18(13) Variable(14) (15) N/A
Class P (16) N/A (17) N/A
Class AR $ 50.00 N/A (18) N/A
_______________
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* Except for one certificate of the Class C-B-9 Certificates which shall contain any stub piece of less than $1.
(1) With respect to each Distribution Date, the Pass-Through Rate for the Class 1-A-1, Class 1-A-2 and Class 1-A-3 Certificates
shall be a per annum rate equal to the Net WAC Rate for Loan Group 1 for that Distribution Date.
(2) With respect to each Distribution Date, the Pass-Through Rate for the Class 2-A-1 and Class 2-A-2 Certificates shall be a
per annum rate equal to the Net WAC Rate for Loan Group 2 for that Distribution Date.
(3) With respect to each Distribution Date, the Pass-Through Rate for the Class 3-A-1, Class 3-A-2, Class 3-A-3 and Class 3-A-4
Certificates shall be a per annum rate equal to the Net WAC Rate for Loan Group 3 for that Distribution Date.
(4) With respect to each Distribution Date, the Pass-Through Rate for the Class 4-A-1 and Class 4-A-2 Certificates shall be a
per annum rate equal to the Net WAC Rate for Loan Group 4 for that Distribution Date.
(5) With respect to each Distribution Date, the Pass-Through Rate for the Class 5-A-1 and Class 5-A-2 Certificates shall be a
per annum rate equal to the Net WAC Rate for Loan Group 5 for that Distribution Date.
(6) The Formula Rate for the March 2006 Distribution Date for the Class 6-A-1 Certificates is 4.735% per annum. After such
Distribution Date, the Formula Rate for the Class 6-A-1 Certificates shall be a per annum rate equal to the sum of the applicable
Certificate Index and the applicable Certificate Margin for such Distribution Date; provided, however, that on any Distribution
Date for which on the related Swap Payment Date there has occurred a Swap Suspension Event, the Formula Rate for the Class 6-A-1
Certificates shall be a per annum rate equal to the lesser of (a) the sum of the applicable Certificate Index and the applicable
Certificate Margin for such Distribution Date and (b) the Net Funds Cap. The interest rate for the REMIC III Regular Interest
evidenced by the Class 6-A-1 Certificates shall be the lesser of (a) the Formula Rate for the Class 6-A-1 Certificates and (b)
the Net Funds Cap.
(7) The Pass-Through Rate for the March 2006 Distribution Date for the Class 6-A-2 Certificates is 4.895% per annum. After such
Distribution Date, the Pass-Through Rate for the Class 6-A-2-1 Certificates shall be a per annum rate equal to the least of
(a) the sum of the applicable Certificate Index and the applicable Certificate Margin for such Distribution Date, (b) the Net
Funds Cap and (c) 11.00%.
(8) The Pass-Through Rate for the March 2006 Distribution Date for the Class 6-M-1 Certificates is 4.995% per annum. After such
Distribution Date, the Pass-Through Rate for the Class 6-M-1 Certificates shall be a per annum rate equal to the least of (a) the
sum of the applicable Certificate Index and the applicable Certificate Margin for such Distribution Date, (b) the Net Funds Cap
and (c) 11.00%.
(9) The Pass-Through Rate for the March 2006 Distribution Date for the Class 6-M-2 Certificates is 5.175% per annum. After such
Distribution Date, the Pass-Through Rate for the Class 6-M-2 Certificates shall be a per annum rate equal to the least of (a) the
sum of the applicable Certificate Index and the applicable Certificate Margin for such Distribution Date, (b) the Net Funds Cap
and (c) 11.00%.
(10) The Pass-Through Rate for the March 2006 Distribution Date for the Class 6-M-3 Certificates is 6.105% per annum. After such
Distribution Date, the Pass-Through Rate for the Class 6-M-3 Certificates shall be a per annum rate equal to the least of (a) the
sum of the applicable Certificate Index and the applicable Certificate Margin for such Distribution Date, (b) the Net Funds Cap
and (c) 11.00%.
(11) The Pass-Through Rate for the March 2006 Distribution Date for the Class 6-M-4 Certificates is 6.855% per annum. After such
Distribution Date, the Pass-Through Rate for the Class 6-M-4 Certificates shall be a per annum rate equal to the least of (a) the
sum of the applicable Certificate Index and the applicable Certificate Margin for such Distribution Date, (b) the Net Funds Cap
and (c) 11.00%.
(12) With respect to each Distribution Date, the Pass-Through Rate for the Class C-B-1, Class C-B-2, Class C-B-3, Class C-B-4,
Class C-B-5, Class C-B-6, Class C-B-7, Class C-B-8 and Class C-B-9 Certificates shall be a per annum rate equal to the quotient,
expressed as a percentage of (a) the sum of (i) the product of (x) the Net WAC Rate of Loan Group 1 for that Distribution Date
and (y) the Subordinate Component Balance for Loan Group 1 immediately prior to such Distribution Date, (ii) the product of
(x) the Net WAC Rate of Loan Group 2 for that Distribution Date and (y) the Subordinate Component Balance for Loan Group 2
immediately prior to such Distribution Date, (iii) the product of (x) the Net WAC Rate of Loan Group 3 for that Distribution Date
and (y) the Subordinate Component Balance for Loan Group 3 immediately prior to such Distribution Date, (iv) the product of
(x) the Net WAC Rate of Loan Group 4 for that Distribution Date and (y) the Subordinate Component Balance for Loan Group 4
immediately prior to such Distribution Date and (v) the product of (x) the Net WAC Rate of Loan Group 5 for that Distribution
Date and (y) the Subordinate Component Balance for Loan Group 5 immediately prior to such Distribution Date, divided by (b) the
aggregate of the Subordinate Component Balances for Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4 and Loan Group 5
immediately prior to such Distribution Date.
(13) The Class 6-X Certificates will not accrue interest on their Class Principal Balance. The Class 6-X Certificates accrue
interest on the Class 6-X Notional Amount.
(14) The Class 6-X Certificates will be comprised of two REMIC III Regular Interests, a principal only regular interest
designated 6-X-PO and an interest only regular interest designated 6-X-IO, which will be entitled to distributions as set forth
herein. On each Distribution Date, the Class 6-X Certificates shall be entitled to the Class 6-X Distributable Amount. With
respect to any Distribution Date, interest accrued on the Class 6-X Certificates during the related Accrual Period shall equal
interest at the related Pass-Through Rate on the Class 6-X Notional Amount immediately prior to such Distribution Date, in each
case reduced by any interest shortfalls with respect to the Mortgage Loans in the related Loan Group including Prepayment
Interest Shortfalls to the extent not covered by Compensating Interest Payments. The Pass-Through Rate for the Class 6-X
Certificates or REMIC III Regular Interest 6-X-IO for any Distribution Date shall equal a per annum rate equal to the percentage
equivalent of a fraction, the numerator of which is the product of (a) 30 and (b) the sum of the amounts calculated pursuant to
clauses (i) through (iii) below, and the denominator of which is the product of (a) the actual number of days in the related
Accrual Period and (b) the aggregate Uncertificated Principal Balance of REMIC II Regular Interests LT1, LT2, LT3 and LT4. For
purposes of calculating the Pass-Through Rate for the Class 6-X Certificates, the numerator is equal to the sum of the following
components:
(i) the Uncertificated Pass-Through Rate for REMIC II Regular Interests LT1 minus the Marker Rate, applied to a notional
amount equal to the aggregate Uncertificated Principal Balance of REMIC II Regular Interest LT1;
(ii) the Uncertificated Pass-Through Rate for REMIC II Regular Interest LT2 minus the Marker Rate, applied to a notional
amount equal to the Uncertificated Principal Balance of REMIC II Regular Interest LT2; and
(iii) the Uncertificated Pass-Through Rate for REMIC II Regular Interest LT4 minus twice the Marker Rate, applied to a
notional amount equal to the Uncertificated Principal Balance of REMIC II Regular Interest LT4.
Accrued interest on the Class 6-X Certificates shall accrue on the basis of a 360-day year and the actual number of days in the
related Accrual Period. Payments from the Interest Remittance Amount or Principal Remittance Amount to any Class of Group 6
Certificates in respect of Basis Risk Shortfalls or to the Supplemental Interest Trust for payment to the Swap Counterparty shall
be deemed to have first been distributed from REMIC III to the holders of the Class 6-X Certificates in respect of REMIC III
Regular Interest 6-X-IO and then paid by such holders to such Class of Group 6 Certificates or the Supplemental Interest Trust,
as applicable. Any amounts distributed to the holders of the Class 6-A-1 Certificates by the Trust Administrator from amounts it
receives from the Supplemental Interest Account shall be deemed to have first been paid outside of any REMIC to the holders of
the Class 6-X Certificates in respect of their rights with respect to the Supplemental Interest Trust and then paid outside of
any REMIC by such holders to holders of the Class 6-A-1 Certificates.
(15) The Class 6-X Certificates will be issued in certificated, fully-registered form in minimum denominations of 20% of the
Percentage Interest therein and increments of 10% in excess thereof.
(16) The Class P Certificates will not have a Class Principal Balance. The Class P Certificates shall have an initial notional
balance of $1,349,525,720.73 and will be entitled to distributions of Assigned Prepayment Premiums only. Such entitlement shall
not be an interest in any REMIC created hereunder.
(17) The Class P Certificates will be issued in certificated, fully-registered form in minimum denominations of 20% of the
Percentage Interest therein and increments of 10% in excess thereof.
(18) The Class AR Certificates will be issued in minimum Percentage Interests of 20%.
For the avoidance of doubt, the Trust Administrator shall account for any interest amount due to a Certificateholder
in excess of the interest rate on the REMIC Regular Interest issued by REMIC III evidenced by such Certificate as part of the payment
made to the Class 6-X Certificates, to the extent it is entitled to funds from the REMIC, and then paid outside of the REMIC pursuant
to a separate contractual right to such Certificateholder.
The foregoing REMIC structure is intended to cause all of the cash from the Mortgage Loans to flow through to
REMIC III as cash flow on a REMIC Regular Interest, without creating any shortfall--actual or potential (other than for credit losses)
to any REMIC Regular Interest. To the extent that the structure is believed to diverge from such intention the Trust Administrator
shall resolve ambiguities to accomplish such result and shall to the extent necessary rectify any drafting errors or seek
clarification to the structure without Certificateholder approval (but with guidance of counsel) to accomplish such intention.
Set forth below are designations of Classes of Certificates to the categories used herein:
Book-Entry Certificates............. All Classes of Certificates other than the Physical Certificates.
Class A Certificates................ The Group 1, Group 2, Group 3, Group 4 and Group 5 Certificates and the
Group 6 Senior Certificates.
Class C-B Certificates.............. The Class C-B-1, Class C-B-2, Class C-B-3, Class C-B-4, Class C-B-5,
Class C-B-6, Class C-B-7, Class C-B-8 and Class C-B-9 Certificates.
Class M Certificates................ The Class 6-M-1, Class 6-M-2, Class 6-M-3 and Class 6-M-4 Certificates.
ERISA-Restricted Certificates....... Residual Certificates and Private Certificates; and any Certificates that
do not satisfy the applicable ratings requirement under the Underwriter's
Exemption.
Group 1 Certificates................ The Class 1-A-1, Class 1-A-2, Class 1-A-3 and Residual Certificates.
Group 2 Certificates................ The Class 2-A-1 and Class 2-A-2 Certificates.
Group 3 Certificates................ The Class 3-A-1, Class 3-A-2, Class 3-A-3 and Class 3-A-4 Certificates.
Group 4 Certificates................ The Class 4-A-1 and Class 4-A-2 Certificates.
Group 5 Certificates................ The Class 5-A-1 and Class 5-A-2 Certificates.
Group 6 Certificates................ The Group 6 Senior Certificates, Class 6-X Certificates and Class M
Certificates.
Group 6 Senior Certificates......... The Class 6-A-1 and Class 6-A-2 Certificates.
LIBOR Certificates.................. The Group 6 Senior Certificates and Class M Certificates.
Notional Amount Certificates........ The Class 6-X Certificates.
Offered Certificates................ All Classes of Certificates other than the Private Certificates.
Private Certificates................ The Class C-B-7 Class C-B-8, Class C-B-9, Class 6-X and Class P
Certificates.
Physical Certificates............... The Residual Certificates and the Private Certificates.
Rating Agencies..................... Xxxxx'x and S&P.
Regular Certificates................ All Classes of Certificates other than the Residual Certificates.
Residual Certificates............... The Class AR and Class AR-L Certificates.
Senior Certificates................. The Class A Certificates.
Subordinate Certificates............ The Class M, Class C-B and Class 6-X Certificates.
All covenants and agreements made by the Depositor herein are for the benefit and security of the
Certificateholders. The Depositor is entering into this Agreement, and the Trustee is accepting the trusts created hereby and
thereby, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged.
The parties hereto intend to effect an absolute sale and assignment of the Mortgage Loans to the Trustee for the
benefit of Certificateholders under this Agreement. However, the Depositor and the Seller will hereunder absolutely assign and, as a
precautionary matter grant a security interest, in and to its rights, if any, in the related Mortgage Loans to the Trustee on behalf
of Certificateholders to ensure that the interest of the Certificateholders hereunder in the Mortgage Loans is fully protected.
W I T N E S S E T H T H A T:
In consideration of the mutual agreements herein contained, the Depositor, the Seller, the Master Servicer, the
Servicers, the Special Servicer, the Trustee and the Trust Administrator agree as follows:
ARTICLE I
DEFINITIONS
Whenever used in this Agreement, the following words and phrases, unless the context otherwise requires, shall have
the following meanings:
1933 Act: The Securities Act of 1933, as amended.
Accepted Servicing Practices: With respect to any Mortgage Loan, those mortgage servicing practices of prudent
mortgage lending institutions which service mortgage loans of the same type as such Mortgage Loan in the jurisdiction where the
related Mortgaged Property is located.
Accountant's Attestation: The attestation required from an Accountant pursuant to Section 13.08.
Accrual Period: For any interest bearing Class of Certificates, other than the LIBOR Certificates, and any
Distribution Date, the calendar month immediately preceding such Distribution Date and with respect to the LIBOR Certificates, the
period beginning on the immediately preceding Distribution Date (or the Closing Date, in the case of the first Accrual Period) and
ending on the day immediately preceding such Distribution Date.
Additional Disclosure Notification: As defined in Section 13.02.
Additional Form 10-D Disclosure: As defined in Section 13.02.
Additional Form 10-K Disclosure: As defined in Section 13.03.
Additional Servicer: Each affiliate of each Servicer that Services any of the Mortgage Loans and each Person who is
not an affiliate of any Servicer, who Servicers 10% or more of the Mortgage Loans (measure by aggregate Stated Principal Balance of
the Mortgage Loans, annually at the commencement of the calendar year prior to the year in which an Item 1123 Certificate is required
to the delivered). For clarification purposes, the Master Servicer and the Trust Administrator are Additional Servicers.
Advance: With respect to any Non-Designated Mortgage Loan and any Distribution Date, any payment required to be
made by a Servicer or the Master Servicer, as applicable, with respect to such Distribution Date pursuant to Section 5.01.
With respect to any Countrywide Serviced Mortgage Loan and any Distribution Date, the payment required to be made by
(i) Countrywide with respect to the Remittance Date (as defined in the Countrywide Underlying Servicing Agreement) in the month of
such Distribution Date pursuant to Subsection 11.19 of Exhibit 9 of the Countrywide Underlying Servicing Agreement or (ii) the Master
Servicer with respect to such Distribution Date pursuant to Section 3.20(b) of this Agreement.
Adverse REMIC Event: As defined in Section 2.07(f).
Adjustment Date: With respect to each Mortgage Loan, each adjustment date on which the Mortgage Rate thereon
changes pursuant to the related Mortgage Note. The first Adjustment Date following the Cut-off Date as to each such Mortgage Loan is
set forth in the Mortgage Loan Schedule.
Aggregate Groups 1-5 Collateral Balance: With respect to any date of determination, will be equal to the sum of the
Aggregate Loan Group Balances for Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4 and Loan Group 5 as of such date of
determination.
Aggregate Loan Group Balance: With respect to any Loan Group and as of any date of determination, will be equal to
the aggregate Stated Principal Balance of the Mortgage Loans in such Loan Group as of the first day of the month of such date of
determination.
Agreement: This Pooling and Servicing Agreement and all amendments or supplements hereto.
Ancillary Income: All income derived from the Non-Designated Mortgage Loans, other than Servicing Fees and Master
Servicing Fees, including but not limited to, late charges, fees received with respect to checks or bank drafts returned by the
related bank for non-sufficient funds, assumption fees, optional insurance administrative fees and all other incidental fees and
charges. Ancillary Income does not include any Assigned Prepayment Premiums.
Applied Loss Amount: With respect to any Distribution Date, with respect to the Group 6 Certificates, the excess,
if any, of (i) the aggregate Class Principal Balances of the Group 6 Certificates (other than the related Notional Amount
Certificates), after giving effect to all Realized Losses with respect to the Mortgage Loans in Loan Group 6 during the Collection
Period for such Distribution Date and payments of principal on such Distribution Date over (ii) the Aggregate Loan Group Balance for
Loan Group 6 for such Distribution Date.
Appraised Value: The appraised value of the Mortgaged Property based upon the appraisal made for the originator at
the time of the origination of the related Mortgage Loan or the sales price of the Mortgaged Property at the time of such
origination, whichever is less, or (i) with respect to any Mortgage Loan that represents a refinancing other than a Streamlined
Mortgage Loan, the lower of the appraised value at origination or the appraised value of the Mortgaged Property based upon the
appraisal made at the time of such refinancing and (ii) with respect to any Streamlined Mortgage Loan, the appraised value of the
Mortgaged Property based upon the appraisal made in connection with the origination of the mortgage loan being refinanced.
Assigned Prepayment Premium: Any Prepayment Premium on a Xxxxx Fargo Serviced Mortgage Loan, any Prepayment Premium
on a SPS Serviced Mortgage Loan and any other Prepayment Premium on deposit in the Certificate Account.
Assignment and Assumption Agreement: That certain assignment and assumption agreement dated as of February 1, 2006,
by and between DLJ Mortgage Capital, Inc., as assignor, and the Depositor, as assignee, relating to the Mortgage Loans.
Assignment of Proprietary Lease: With respect to a Cooperative Loan, the assignment or mortgage of the related
Proprietary Lease from the Mortgagor to the originator of the Cooperative Loan.
Available Distribution Amount: With respect to any Distribution Date and each of Group 1, Group 2, Group 3, Group 4
and Group 5 the sum of:
(i)......all amounts in respect of Scheduled Payments (net of the related Expense Fees) due on the related Due Date and received
prior to the related Determination Date on the related Mortgage Loans, together with any Advances in respect thereof;
(ii) all Insurance Proceeds (to the extent not applied to the restoration of the Mortgaged Property or released to the Mortgagor
in accordance with the applicable Servicer's Accepted Servicing Standards), all Liquidation Proceeds received during the
calendar month preceding the month of that Distribution Date on the related Mortgage Loans, in each case net of unreimbursed
Liquidation Expenses incurred with respect to such Mortgage Loans;
(iii) all Principal Prepayments received during the related Prepayment Period on the related Mortgage Loans, excluding Prepayment
Premiums;
(iv) amounts received with respect to such Distribution Date as the Substitution Adjustment Amount or Purchase Price in respect
of a Mortgage Loan in the related Loan Group repurchased by the Seller, purchased by a Holder of a Subordinate Certificate
pursuant to Section 3.11(f) or purchased by the Special Servicer pursuant to Section 3.11(g) as of such Distribution Date;
(v) any amounts payable as Compensating Interest Payments by a Servicer with respect to the related Mortgage Loans on such
Distribution Date;
(vi) all Recoveries, if any; and
(vii) the portion of the Mortgage Loan Purchase Price related to such Loan Group paid in connection with an Optional Termination
up to the amount of the Par Value for such Loan Group;
in the case of clauses (i) through (iv) above reduced by amounts in reimbursement for Advances previously made and other amounts as
to which the Trustee, the Trust Administrator, a Servicer or the Master Servicer is entitled to be reimbursed pursuant to
Section 3.08 in respect of the related Mortgage Loans or otherwise.
Back-Up Servicer: Xxxxx Fargo Bank, National Association, acting in its capacity as back-up servicer for the SPS
Serviced Loans hereunder, or its successors in interest, as applicable.
Bankruptcy Code: The United States Bankruptcy Code, as amended from time to time (11 U.S.C. xx.xx. 101 et seq.).
Bankruptcy Coverage Termination Date: The point in time at which the Bankruptcy Loss Coverage Amount has been
reduced to zero.
Bankruptcy Loss: With respect to any Loan Group, Realized Losses on the Mortgage Loans in that Loan Group incurred
as a result of a Deficient Valuation or Debt Service Reduction.
Bankruptcy Loss Coverage Amount: As of any Determination Date, the Bankruptcy Loss Coverage Amount shall equal the
Initial Bankruptcy Loss Coverage Amount as reduced by (i) the aggregate amount of Bankruptcy Losses allocated to the Class C-B
Certificates since the Cut-off Date and (ii) any permissible reductions in the Bankruptcy Loss Coverage Amount as evidenced by a
letter of each Rating Agency to the Trust Administrator to the effect that any such reduction will not result in a downgrading, or
otherwise adversely affect, of the then current ratings assigned to such Classes of Certificates rated by it.
Basis Risk Shortfall: For any Class of LIBOR Certificates (other than the Class 6-A-1 Certificates) and any
Distribution Date, the sum of (i) the excess, if any, of (a) the related Current Interest calculated on the basis of the least of
(x) the applicable Certificate Index plus the applicable Certificate Margin, (y) the Maximum Interest Rate and (z) 11.00% over (b) the
related Current Interest for the applicable Distribution Date, (ii) any amount described in clause (i) remaining unpaid from prior
Distribution Dates, and (iii) interest on the amount in clause (ii) for the related Accrual Period calculated at a per annum rate
equal to the least of (x) the applicable Certificate Index plus the applicable Certificate Margin, (y) the applicable Maximum
Interest Rate and (z) 11.00%. For the Class 6-A-1 Certificates and any Distribution Date on which on the related Swap Payment Date
there has occurred a Swap Suspension Event, the sum of (i) the excess, if any, of (a) the related Current Interest calculated on the
basis of the lesser of (x) the applicable Certificate Index plus the applicable Certificate Margin and (y) the Maximum Interest Rate
over (b) the related Current Interest for the applicable Distribution Date, (ii) any amount described in clause (i) remaining unpaid
from prior Distribution Dates, and (iii) interest on the amount in clause (ii) for the related Accrual Period calculated at a per
annum rate equal to the least of (x) the applicable Certificate Index plus the applicable Certificate Margin and (y) the applicable
Maximum Interest Rate.
Beneficial Holder: A Person holding a beneficial interest in any Certificate through a Participant or an Indirect
Participant or a Person holding a beneficial interest in any Definitive Certificate.
Book-Entry Certificates: As set forth in the Preliminary Statement.
Book-Entry Form: Any Certificate held through the facilities of the Depository.
Business Day: Any day other than (i) a Saturday or a Sunday or (ii) a day on which banking institutions in New York
or the state in which the office of the Master Servicer or any Servicer or the Corporate Trust Office of the Trustee or Trust
Administrator are located are authorized or obligated by law or executive order to be closed.
Carryforward Interest: For any Class of LIBOR Certificates and any Distribution Date, the sum of (1) the amount, if
any, by which (x) the sum of (A) Current Interest for such Class for the immediately preceding Distribution Date and (B) any unpaid
Carryforward Interest for such Class from previous Distribution Dates exceeds (y) the amount paid in respect of interest on such
Class on such immediately preceding Distribution Date, and (2) interest on such amount for the related Accrual Period at the
applicable Pass-Through Rate.
Cash Remittance Date: With respect to any Distribution Date and (A) SPS, the 7th calendar day preceding such
Distribution Date, or if such 7th calendar day is not a Business Day, the Business Day immediately preceding such 7th calendar day
and (B) Xxxxx Fargo and the Designated Servicers, the 18th calendar day of the month in which the Distribution Date occurs, or if
such 18th calendar day is not a Business Day, the Business Day immediately following such 18th calendar day.
Certificate: Any Certificates executed and authenticated by the Trust Administrator on behalf of the Trustee for
the benefit of the Certificateholders in substantially the form or forms attached as Exhibits A through G hereto.
Certificate Account: The separate Eligible Account created and maintained with the Trust Administrator, or any
other bank or trust company acceptable to the Rating Agencies which is incorporated under the laws of the United States or any state
thereof pursuant to Section 3.05, which account shall bear a designation clearly indicating that the funds deposited therein are held
in trust for the benefit of the Trust Administrator, as agent for the Trustee, on behalf of the Certificateholders or any other
account serving a similar function acceptable to the Rating Agencies. Funds in the Certificate Account may (i) be held uninvested
without liability for interest or compensation thereon or (ii) be invested at the direction of the Trust Administrator in Eligible
Investments and reinvestment earnings thereon (net of investment losses) shall be paid to the Trust Administrator. Funds deposited
in the Certificate Account (exclusive of the amounts permitted to be withdrawn pursuant to Section 3.08(b)) shall be held in trust
for the Certificateholders.
Certificate Balance: With respect to any Certificate at any date, the maximum dollar amount of principal to which
the Holder thereof is then entitled hereunder, such amount being equal to the Denomination thereof (i) minus all distributions of
principal and allocations of Realized Losses, including Excess Losses or Applied Loss Amounts, as applicable, previously made or
allocated with respect thereto and, in the case of the Class 6-A-2 Certificates and any Subordinate Certificates, reduced by any such
amounts allocated to such Class on prior Distribution Dates pursuant to Section 4.02 and (ii) plus the amount of any increase to the
Certificate Balance of such Certificate pursuant to Section 4.03.
With respect to each Class 6-X Certificate, on any date of determination, an amount equal to the Percentage Interest
evidenced by such Certificate multiplied by an amount equal to (i) the excess, if any, of (A) the Aggregate Loan Group Balance for
Loan Group 6 as of such date of determination, over (B) the then aggregate Class Principal Balance of the Group 6 Senior Certificates
and Class M Certificates then outstanding, which represents the sum of (i) the initial principal balance of REMIC III Regular
Interest 6-X-PO, as reduced by Realized Losses allocated thereto and payments deemed made thereon, and (ii) accrued and unpaid
interest on REMIC III Regular Interest 6-X-IO, as reduced by Realized Losses allocated thereto.
Certificate Group: Any of Certificate Group 1, Certificate Group 2, Certificate Group 3, Certificate Group 5 or
Certificate Group 6, as applicable.
Certificate Group 1: Any of the Certificates with a Class designation beginning with "1" and relating to Loan
Group 1.
Certificate Group 2: Any of the Certificates with a Class designation beginning with "2" and relating to Loan
Group 2.
Certificate Group 3: Any of the Certificates with a Class designation beginning with "3" and relating to Loan
Group 3.
Certificate Group 4: Any of the Certificates with a Class designation beginning with "4" and relating to Loan
Group 4.
Certificate Group 5: Any of the Certificates with a Class designation beginning with "5" and relating to Loan Group
5.
Certificate Group 6: Any of the Certificates with a Class designation beginning with "6" and relating to Loan Group
6.
Certificateholder or Holder: The Person in whose name a Certificate is registered in the Certificate Register.
Certificate Index: With respect to each Distribution Date and the LIBOR Certificates, the rate for one month United
States dollar deposits quoted on Telerate Page 3750 as of 11:00 A.M., London time, on the related Interest Determination Date
relating to each Class of LIBOR Certificates. If such rate does not appear on such page (or such other page as may replace that page
on that service, or if such service is no longer offered, such other service for displaying one month LIBOR or comparable rates as
may be reasonably selected by the Trust Administrator after consultation with DLJMC), the rate will be the related Reference Bank
Rate. If no such quotations can be obtained and no related Reference Bank Rate is available, the Certificate Index with respect to
the LIBOR Certificates will be the Certificate Index applicable to such Certificates on the preceding Distribution Date.
On the Interest Determination Date immediately preceding each Distribution Date, the Trust Administrator shall
determine each Certificate Index for the Accrual Period commencing on such Distribution Date and inform the Master Servicer and each
Servicer of such rate.
Certificate Margin: As to each Class of LIBOR Certificates, the applicable amount set forth below:
Certificate Margin
Class (1) (2)
6-A-1 0.13% 0.26%
6-A-2 0.29% 0.58%
6-M-1 0.39% 0.89%
6-M-2 0.57% 1.07%
6-M-3 1.50% 2.00%
6-M-4 2.25% 2.75%
___________
(1) On and prior to the first Distribution Date on which the Optional Termination for Loan Group 6 may
occur.
(2) After the first Distribution Date on which the Optional Termination for Loan Group 6 may occur.
Certificate Register: The register maintained pursuant to Section 6.02(a) hereof.
Class: All Certificates bearing the same class designation as set forth in the Preliminary Statement.
Class 6-M-1 Principal Payment Amount: For any Distribution Date on or after the Stepdown Date and as long as a
Trigger Event has not occurred with respect to such Distribution Date, will be the amount, if any, by which (x) the sum of (i) the
aggregate Class Principal Balance of the Group 6 Senior Certificates, after giving effect to payments on such Distribution Date and
(ii) the Class Principal Balance of the Class 6-M-1 Certificates immediately prior to such Distribution Date exceeds (y) the lesser
of (A) the product of (i) 89.70% and (ii) the Aggregate Loan Group Balance for Loan Group 6 for such Distribution Date and (B) the
amount, if any, by which (i) the Aggregate Loan Group Balance for Loan Group 6 for such Distribution Date exceeds (ii) 0.50% of the
Aggregate Loan Group Balance for Loan Group 6 as of the Initial Cut-off Date.
Class 6-M-2 Principal Payment Amount: For any Distribution Date on or after the Stepdown Date and as long as a
Trigger Event has not occurred with respect to such Distribution Date, will be the amount, if any, by which (x) the sum of (i) the
aggregate Class Principal Balance of the Group 6 Senior Certificates and Class 6-M-1 Certificates, in each case, after giving effect
to payments on such Distribution Date and (ii) the Class Principal Balance of the Class 6-M-2 Certificates immediately prior to such
Distribution Date exceeds (y) the lesser of (A) the product of (i) 94.30% and (ii) the Aggregate Loan Group Balance for Loan Group 6
for such Distribution Date and (B) the amount, if any, by which (i) the Aggregate Loan Group Balance for Loan Group 6 for such
Distribution Date exceeds (ii) 0.50% of the Aggregate Loan Group Balance for Loan Group 6 as of the Initial Cut-off Date.
Class 6-M-3 Principal Payment Amount: For any Distribution Date on or after the Stepdown Date and as long as a
Trigger Event has not occurred with respect to such Distribution Date, will be the amount, if any, by which (x) the sum of (i) the
aggregate Class Principal Balance of the Group 6 Senior Certificates, Class 6-M-1 and Class 6-M-2 Certificates, in each case, after
giving effect to payments on such Distribution Date and (ii) the Class Principal Balance of the Class 6-M-3 Certificates immediately
prior to such Distribution Date exceeds (y) the lesser of (A) the product of (i) 97.70% and (ii) the Aggregate Loan Group Balance for
Loan Group 6 for such Distribution Date and (B) the amount, if any, by which (i) the Aggregate Loan Group Balance for Loan Group 6
for such Distribution Date exceeds (ii) 0.50% of the Aggregate Loan Group Balance for Loan Group 6 as of the Initial Cut-off Date.
Class 6-M-4 Principal Payment Amount: For any Distribution Date on or after the Stepdown Date and as long as a
Trigger Event has not occurred with respect to such Distribution Date, will be the amount, if any, by which (x) the sum of (i) the
aggregate Class Principal Balance of the Group 6 Senior Certificates, Class 6-M-1, Class 6-M-2 and Class 6-M-3 Certificates, in each
case, after giving effect to payments on such Distribution Date and (ii) the Class Principal Balance of the Class 6-M-4 Certificates
immediately prior to such Distribution Date exceeds (y) the lesser of (A) the product of (i) 98.70% and (ii) the Aggregate Loan Group
Balance for Loan Group 6 for such Distribution Date and (B) the amount, if any, by which (i) the Aggregate Loan Group Balance for
Loan Group 6 for such Distribution Date exceeds (ii) 0.50% of the Aggregate Loan Group Balance for Loan Group 6 as of the Initial
Cut-off Date.
Class 6-X Distributable Amount: With respect to any Distribution Date and the Class 6-X Certificates, to the extent
of any Monthly Excess Cashflow remaining on such Distribution Date after the distribution of amounts pursuant to
Section 4.01(II)(d)(i)-(xi), the sum of (a) the amount of interest accrued during the related Accrual Period on the Class 6-X
Certificates (as described in the Preliminary Statement) and (b) the Overcollateralization Release Amount, if any, for such
Distribution Date.
Class 6-X Notional Amount: With respect to the Class 6-X Certificates or REMIC III Regular Interest 6-X-IO and any
Distribution Date, the aggregate of the Uncertificated Principal Balances of the REMIC II Regular Interests LT1, LT2, LT3 and LT4
immediately prior to such Distribution Date, (which for clarification is equal to the Aggregate Loan Group Balance for Loan Group 6
as of the first day of the related Collection Period (excluding any such Mortgage Loans that were subject to a Payoff, the principal
of which was distributed on the Distribution Date preceding the current Distribution Date)).
Class A Certificates: As set forth in the Preliminary Statement.
Class C-B Certificates: As set forth in the Preliminary Statement.
Class C-B Credit Support Depletion Date: The first Distribution Date on which the aggregate Class Principal Balance
of the Class C-B Certificates has been or will be reduced to zero.
Class C-B Percentage: With respect to any Distribution Date, the aggregate Class Principal Balance of the Class C-B
Certificates immediately prior to such Distribution Date divided by the Aggregate Groups 1-5 Collateral Balance as of the first day
of the related Collection Period (excluding any such Mortgage Loans that were subject to a Payoff, the principal of which was
distributed on the Distribution Date preceding the current Distribution Date).
Class Interest Shortfall: With respect to any Distribution Date and Class of Group 1, Group 2, Group 3, Group 4,
Group 5 and Class C-B Certificates, the amount by which the amount described in clause (i) of the definition of Interest Distribution
Amount for such Class, exceeds the amount of interest actually distributed on such Class on such Distribution Date.
Class M Certificates: The Class 6-M-1, Class 6-M-2, Class 6-M-3 and Class 6-M-4 Certificates.
Class Notional Amount: The Class 6-X Notional Amount.
Class Principal Balance: With respect to any Class and as to any date of determination, the aggregate of the
Certificate Balances of all Certificates of such Class as of such date.
Class Unpaid Interest Amounts: With respect to any Distribution Date and Class of interest bearing Group 1,
Group 2, Group 3, Group 4, Group 5 and Class C-B Certificates, the amount by which the aggregate Class Interest Shortfalls for such
Class on prior Distribution Dates exceeds the amount distributed on such Class on prior Distribution Dates pursuant to clause (ii) of
the definition of Interest Distribution Amount.
Class Y Principal Reduction Amounts: For any Distribution Date, the amounts by which the Uncertificated Principal
Balances of the Class Y Regular Interests will be reduced on such Distribution Date by the allocation of Realized Losses and the
distribution of principal, determined as described in Appendix A.
Class Y Regular Interests: The Class Y-1, Class Y-2, Class Y-3, Class Y-4 and Class Y-5 Regular Interests.
Class Y-1 Principal Distribution Amount: For any Distribution Date, the excess, if any, of the Class Y-1 Principal
Reduction Amount for such Distribution Date over the principal portion of Realized Losses allocated to the Class Y-1 Regular Interest
on such Distribution Date.
Class Y-1 Principal Reduction Amount: The Class Y Principal Reduction Amount for the Class Y-1 Regular Interest as
determined pursuant to the provisions of the Appendix A.
Class Y-1 Regular Interest: The uncertificated undivided beneficial interest in REMIC I which constitutes a REMIC I
Regular Interest and is entitled to distributions as set forth herein.
Class Y-2 Principal Distribution Amount: For any Distribution Date, the excess, if any, of the Class Y-2 Principal
Reduction Amount for such Distribution Date over the principal portion of Realized Losses allocated to the Class Y-2 Regular Interest
on such Distribution Date.
Class Y-2 Principal Reduction Amount: The Class Y Principal Reduction Amount for the Class Y-2 Regular Interest as
determined pursuant to the provisions of the Appendix A.
Class Y-2 Regular Interest: The uncertificated undivided beneficial interest in REMIC I which constitutes a REMIC I
Regular Interest and is entitled to distributions as set forth herein.
Class Y-3 Principal Distribution Amount: For any Distribution Date, the excess, if any, of the Class Y-3 Principal
Reduction Amount for such Distribution Date over the principal portion of Realized Losses allocated to the Class Y-3 Regular Interest
on such Distribution Date.
Class Y-3 Principal Reduction Amount: The Class Y Principal Reduction Amount for the Class Y-3 Regular Interest as
determined pursuant to the provisions of the Appendix A.
Class Y-3 Regular Interest: The uncertificated undivided beneficial interest in REMIC I which constitutes a REMIC I
Regular Interest and is entitled to distributions as set forth herein.
Class Y-4 Principal Distribution Amount: For any Distribution Date, the excess, if any, of the Class Y-4 Principal
Reduction Amount for such Distribution Date over the principal portion of Realized Losses allocated to the Class Y-4 Regular Interest
on such Distribution Date.
Class Y-4 Principal Reduction Amount: The Class Y Principal Reduction Amount for the Class Y-4 Regular Interest as
determined pursuant to the provisions of the Appendix A.
Class Y-4 Regular Interest: The uncertificated undivided beneficial interest in REMIC I which constitutes a REMIC I
Regular Interest and is entitled to distributions as set forth herein.
Class Y-5 Principal Distribution Amount: For any Distribution Date, the excess, if any, of the Class Y-5 Principal
Reduction Amount for such Distribution Date over the principal portion of Realized Losses allocated to the Class Y-5 Regular Interest
on such Distribution Date.
Class Y-5 Principal Reduction Amount: The Class Y Principal Reduction Amount for the Class Y-5 Regular Interest as
determined pursuant to the provisions of the Appendix A.
Class Y-5 Regular Interest: The uncertificated undivided beneficial interest in REMIC I which constitutes a REMIC I
Regular Interest and is entitled to distributions as set forth herein.
Class Z Principal Reduction Amounts: For any Distribution Date, the amounts by which the Uncertificated Principal
Balances of the Class Z Regular Interests will be reduced on such Distribution Date by the allocation of Realized Losses and the
distribution of principal, which shall be in each case the excess of (A) the sum of (x) the excess of the REMIC I Available
Distribution Amount for the related Group (i.e. the "related Group" for the Class Z-1 Regular Interest is the Group 1 Loans, the
"related Group" for the Class Z-2 Regular Interest is the Group 2 Loans, the "related Group" for the Class Z-3 Regular Interest is the
Group 3 Loans, the "related Group" for the Class Z-4 Regular Interest is the Group 4 Loans, and the "related Group" for the Class Z-5
Regular Interest is the Group 5 Loans) exclusive of any Recoveries included therein over the amounts thereof distributable (i) in
respect of interest on such Class Z Regular Interest and the related Class Y Regular Interest and (ii) in the case of the Group 1
Loans, to the Class AR-L Certificates in respect of Component I thereof and (y) the amount of Realized Losses allocable to principal
for the related Group over (B) the Class Y Principal Reduction Amount for the related Group.
Class Z Regular Interests: The Class Z-1, Class Z-2, Class Z-3, Class Z-4 and Class Z-5 Regular Interests.
Class Z-1 Principal Distribution Amount: For any Distribution Date, the excess, if any, of the Class Z-1 Principal
Reduction Amount for such Distribution Date over the principal portion of Realized Losses allocated to the Class Z-1 Regular Interest
on such Distribution Date.
Class Z-1 Principal Reduction Amount: The Class Z Principal Reduction Amount for the Class Z-1 Regular Interest as
determined pursuant to the provisions of the Appendix A.
Class Z-1 Regular Interest: The uncertificated undivided beneficial interest in REMIC I which constitutes a REMIC I
Regular Interest and is entitled to distributions as set forth herein.
Class Z-2 Principal Distribution Amount: For any Distribution Date, the excess, if any, of the Class Z-2 Principal
Reduction Amount for such Distribution Date over the principal portion of Realized Losses allocated to the Class Z-2 Regular Interest
on such Distribution Date.
Class Z-2 Principal Reduction Amount: The Class Z Principal Reduction Amount for the Class Z-2 Regular Interest as
determined pursuant to the provisions of the Appendix A.
Class Z-2 Regular Interest: The uncertificated undivided beneficial interest in REMIC I which constitutes a REMIC I
Regular Interest and is entitled to distributions as set forth herein.
Class Z-3 Principal Distribution Amount: For any Distribution Date, the excess, if any, of the Class Z-3 Principal
Reduction Amount for such Distribution Date over the principal portion of Realized Losses allocated to the Class Z-3 Regular Interest
on such Distribution Date .
Class Z-3 Principal Reduction Amount: The Class Z Principal Reduction Amount for the Class Z-3 Regular Interest as
determined pursuant to the provisions of the Appendix A.
Class Z-3 Regular Interest: The uncertificated undivided beneficial interest in REMIC I which constitutes a REMIC I
Regular Interest and is entitled to distributions as set forth herein.
Class Z-4 Principal Distribution Amount: For any Distribution Date, the excess, if any, of the Class Z-4 Principal
Reduction Amount for such Distribution Date over the principal portion of Realized Losses allocated to the Class Z-4 Regular Interest
on such Distribution Date.
Class Z-4 Principal Reduction Amount: The Class Z Principal Reduction Amount for the Class Z-4 Regular Interest as
determined pursuant to the provisions of the Appendix A.
Class Z-4 Regular Interest: The uncertificated undivided beneficial interest in REMIC I which constitutes a REMIC I
Regular Interest and is entitled to distributions as set forth herein.
Class Z-5 Principal Distribution Amount: For any Distribution Date, the excess, if any, of the Class Z-5 Principal
Reduction Amount for such Distribution Date over the principal portion of Realized Losses allocated to the Class Z-5 Regular Interest
on such Distribution Date.
Class Z-5 Principal Reduction Amount: The Class Z Principal Reduction Amount for the Class Z-5 Regular Interest as
determined pursuant to the provisions of the Appendix A.
Class Z-5 Regular Interest: The uncertificated undivided beneficial interest in REMIC I which constitutes a REMIC I
Regular Interest and is entitled to distributions as set forth herein.
Clearing Agency: An organization registered as a "clearing agency" pursuant to Section 17A of the Securities
Exchange Act of 1934, as amended, which initially shall be DTC, the nominee of which is Cede & Co., as the registered Holder of the
Book Entry Certificates. The Clearing Agency shall at all times be a "clearing corporation" as defined in Section 8 102(a)(5) of the
Uniform Commercial Code of the State of New York.
Closing Date: February 28, 2006.
Code: The Internal Revenue Code of 1986, as amended.
Collection Account: The accounts established and maintained by a Servicer in accordance with Section 3.05.
Collection Period: With respect to each Distribution Date, the period commencing on the second day of the month
preceding the month of the Distribution Date and ending on the first day of the month of the Distribution Date.
Commencement of Foreclosure: The first official action required under local law to commence foreclosure proceedings
or to schedule a trustee's sale under a deed of trust, including: (i) in the case of a mortgage, any filing or service of process
necessary to commence an action to foreclose; or (ii) in the case of a deed of trust, the posting, publishing, filing or delivery of
a notice of sale.
Commission: The U.S. Securities and Exchange Commission.
Compensating Interest Payment: For any Distribution Date and the SPS Serviced Mortgage Loans, the lesser of (i) the
aggregate Servicing Fee payable to SPS in respect of the SPS Serviced Mortgage Loans for such Distribution Date and (ii) the
aggregate Prepayment Interest Shortfall allocable to Payoffs and Curtailments with respect to the SPS Serviced Mortgage Loans.
For any Distribution Date and the Xxxxx Fargo Serviced Mortgage Loans, the lesser of (i) the aggregate Servicing Fee
payable to Xxxxx Fargo in respect of the Xxxxx Fargo Serviced Mortgage Loans for such Distribution Date and (ii) the aggregate
Prepayment Interest Shortfall allocable to Payoffs and Curtailments with respect to the Xxxxx Fargo Serviced Mortgage Loans.
For any Distribution Date and the Master Servicer, the Compensating Interest Payment shall be equal to:
(a) with respect to the SPS Serviced Mortgage Loans, the excess of (i) the Compensating Interest Payment required to be remitted
by SPS for such Distribution Date over (ii) the Compensating Interest Payment actually remitted by SPS for such Distribution
Date;
(b) with respect to the Xxxxx Fargo Serviced Mortgage Loans, the excess of (i) the Compensating Interest Payment required to be
remitted by Xxxxx Fargo for such Distribution Date over (ii) the Compensating Interest Payment actually remitted by Xxxxx
Fargo for such Distribution Date; and
(c) with respect to the Countrywide Serviced Mortgage Loans, the excess of (i) the Prepayment Interest Shortfall Amount (as
defined in the Countrywide Servicing Agreement) required to be remitted by Countrywide on the Remittance Date (as defined in
the Countrywide Servicing Agreement) in the month of such Distribution Date over (ii) the amount of Prepayment Interest
Shortfall Amount (as defined in the Countrywide Servicing Agreement) actually remitted by Countrywide on the Remittance Date
(as defined in the Countrywide Servicing Agreement) in the month of such Distribution Date.
Controlling Person: With respect to any Person, any other Person who "controls" such Person within the meaning of
the Securities Act.
Cooperative Corporation: With respect to any Cooperative Loan, the cooperative apartment corporation that holds
legal title to the related Cooperative Property and grants occupancy rights to units therein to stockholders through Proprietary
Leases or similar arrangements.
Cooperative Lien Search: A search for (a) federal tax liens, mechanics' liens, lis pendens, judgments of record or
otherwise against (i) the Cooperative Corporation and (ii) the seller of the Cooperative Unit, (b) filings of Financing Statements
and (c) the deed of the Cooperative Property into the Cooperative Corporation.
Cooperative Loan: A Mortgage Loan that is secured by a first lien on and a perfected security interest in
Cooperative Shares and the related Proprietary Lease granting exclusive rights to occupy the related Cooperative Unit in the building
owned by the related Cooperative Corporation.
Cooperative Property: With respect to any Cooperative Loan, all real property and improvements thereto and rights
therein and thereto owned by a Cooperative Corporation including without limitation the land, separate dwelling units and all common
elements.
Cooperative Shares: With respect to any Cooperative Loan, the shares of stock issued by a Cooperative Corporation
and allocated to a Cooperative Unit and represented by stock certificates.
Cooperative Unit: With respect to any Cooperative Loan, a specific unit in a Cooperative Property.
Corporate Trust Office: With respect to the Trustee, the designated office of the Trustee at which at any
particular time its corporate trust business with respect to this Agreement shall be administered, which office at the date of the
execution of this Agreement is located at 00 Xxxxxxxxxx Xxxxxx, Xx. Xxxx, Xxxxxxxxx 00000, Attention: Corporate Trust--Structured
Finance. With respect to the Trust Administrator, the designated office of the Trust Administrator at which at any particular time
its corporate trust business with respect to this Agreement shall be administered, which office at the date of the execution of this
Agreement is located at 0000 Xxx Xxxxxxxxx Xxxx, Xxxxxxxx, XX 00000, Attention: CSFB ARMT 2006-1, except for purposes of Section 6.06
and certificate transfer purposes, such term shall mean the office or agency of the Trust Administrator located at Xxxxx Fargo Bank,
N.A., 0xx Xxxxxx xxx Xxxxxxxxx Xxxxxx, Xxxxxxxxxxx, Xxxxxxxxx 00000, Attention: CSFB ARMT 2006-1.
Countrywide: Countrywide Home Loans Servicing LP, and its successors and assigns.
Countrywide Serviced Mortgage Loans: The Mortgage Loans identified as such on the Mortgage Loan Schedule, for which
Countrywide is the applicable Designated Servicer.
Countrywide Reconstituted Servicing Agreement: That certain Reconstituted Servicing Agreement dated as of February
1, 2006 among DLJMC, Countrywide and the Master Servicer, and acknowledged by the Trustee and the Trust Administrator.
Countrywide Underlying Servicing Agreement: The "Servicing Agreement" referred to in the Countrywide Reconstituted
Servicing Agreement.
Current Interest: For any Class of Group 6 Certificates, other than the Class 6-X Certificates, and Distribution
Date, the amount of interest accruing at the applicable Pass-Through Rate on the related Class Principal Balance of such Class during
the related Accrual Period; provided, that as to each Class of Group 6 Certificates the Current Interest shall be reduced by a pro
rata portion of any Interest Shortfalls to the extent not covered by Monthly Excess Interest; provided, that as to the Class 6-A-1
Certificates and on any Distribution Date the Current Interest shall be reduced by an amount of any Net Swap Payments owed by the
Swap Counterparty and received by the Trust Administrator from the Supplemental Interest Account on the related Swap Payment Date.
Curtailment: Any payment of principal on a Mortgage Loan, made by or on behalf of the related Mortgagor, other than
a Scheduled Payment, a prepaid Scheduled Payment or a Payoff, which is applied to reduce the outstanding Stated Principal Balance of
the Mortgage Loan.
Custodial Agreement: An agreement, dated as of the date hereof, among a custodian, the Trustee and the Trust
Administrator, pursuant to which such custodian agrees to hold any of the documents or instruments referred to in Section 2.01 of
this Agreement as agent for the Trustee. As of the date hereof, the Custodian shall act pursuant to the LaSalle Custodial Agreement.
Custodian: A custodian which is appointed pursuant to a Custodial Agreement. Any Custodian so appointed shall act
as agent on behalf of the Trustee, and shall be compensated by the Trust Administrator or as otherwise specified therein. Initially,
LaSalle shall serve as Custodian for all of the Mortgage Loans.
Cut-off Date: For any Initial Mortgage Loan, the Initial Cut-off Date. For any Subsequent Mortgage Loan, the
applicable Subsequent Cut-off Date.
Cut-off Date Principal Balance: With respect to any Mortgage Loan, the Stated Principal Balance thereof as of the
close of business on the Cut-off Date.
Data Remittance Date: With respect to any Distribution Date and each Servicer, the 10th calendar day of the month
in which such Distribution Date occurs, or if such 10th day is not a Business Day, the Business Day immediately following such 10th
day .
Debt Service Reduction: With respect to a Mortgage Loan in Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4
or Loan Group 5, a reduction by a court of competent jurisdiction in a proceeding under the Bankruptcy Code in the Scheduled Payment
for such Mortgage Loan which became final and non appealable, except such a reduction resulting from a Deficient Valuation or any
reduction that results in a permanent forgiveness of principal.
Debt Service Reduction Mortgage Loan: Any Mortgage Loan that became the subject of a Debt Service Reduction.
Deficient Valuation: With respect to any Mortgage Loan in Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4 or
Loan Group 5, a valuation by a court of competent jurisdiction of the Mortgaged Property in an amount less than the then outstanding
indebtedness under the Mortgage Loan, or that results in a permanent forgiveness of principal, which valuation in either case results
from a proceeding under the Bankruptcy Code.
Deferred Amount: For any Class of Group 6 Subordinate Certificates (other than the Class 6-X Certificates) and
Class 6-A-2 Certificates and Distribution Date, will equal the amount by which (x) the aggregate of the Applied Loss Amounts
previously applied in reduction of the Class Principal Balance thereof exceeds (y) the sum of (i) the aggregate of amounts previously
paid in reimbursement thereof and (ii) amounts added to the Class Principal Balances thereof pursuant to Section 4.03(a)(ii) on all
prior Distribution Dates, including such Distribution Date.
Definitive Certificate: As defined in Section 6.07.
Deleted Mortgage Loan: As defined in Section 2.03.
Delinquency Rate: With respect to any Distribution Date, the fraction, expressed as a percentage, the numerator of
which is the aggregate outstanding principal balance of all Mortgage Loans in Loan Group 6 60 or more days delinquent (including all
foreclosures and REO Properties) as of the close of business on the last day of such month, and the denominator of which is the
Aggregate Loan Group Balance for Loan Group 6 as of the close of business on the last day of such month.
Denomination: With respect to each Certificate, the amount set forth on the face thereof as the "Initial
Certificate Balance of this Certificate" or the "Initial Notional Amount of this Certificate" or, if neither of the foregoing, the
Percentage Interest appearing on the face thereof.
Deposit Amount: As defined in Section 4.10(e) or Section 4.11(e) herein, as applicable.
Depositor: Credit Suisse First Boston Mortgage Securities Corp., a Delaware corporation, or its successor in
interest.
Depository Agreement: The Letter of Representation dated as of the Closing Date by and among DTC, the Depositor and
the Trust Administrator for the benefit of the Trustee.
Designated Mortgage Loans: The Countrywide Serviced Mortgage Loans, unless any such Mortgage Loan is no longer
serviced by Countrywide under the Countrywide Servicing Agreement.
Designated Servicer: Countrywide.
Designated Servicing Agreement: The Countrywide Reconstituted Servicing Agreement.
Determination Date: With respect to each Distribution Date and (i) each Servicer (other than Xxxxx Fargo), the 10th
day of the calendar month in which such Distribution Date occurs or, if such 10th day is not a Business Day, the Business Day
immediately succeeding such Business Day and (ii) Xxxxx Fargo, the Business Day immediately preceding the related Cash Remittance
Date.
Disqualified Organization: Any organization defined as a "disqualified organization" under Section 860E(e)(5) of
the Code, which includes 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 the FHLMC, a majority of its board of directors is not selected by such
governmental unit), (ii) a 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" within the meaning of Section 775 of the Code, and (vi) any other Person so designated by 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 the 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 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 March 2006.
DLJMC: DLJ Mortgage Capital, Inc., a Delaware corporation, and its successors and assigns.
DTC: The Depository Trust Company.
Due Date: With respect to each Mortgage Loan and any Distribution Date, the date on which Scheduled Payments on such
Mortgage Loan are due which is either the first day of the month of such Distribution Date, or if Scheduled Payments on such Mortgage
Loan are due on a day other than the first day of the month, the date in the calendar month immediately preceding the Distribution
Date on which such Scheduled Payments are due, exclusive of any days of grace.
Eligible Account: Either (i) an account or accounts maintained with a federal or state chartered depository
institution or trust company acceptable to the Rating Agencies or (ii) an account or accounts the deposits in which are insured by
the FDIC to the limits established by such corporation, provided that any such deposits not so insured shall be maintained in an
account at a depository institution or trust company whose commercial paper or other short term debt obligations (or, in the case of
a depository institution or trust company which is the principal subsidiary of a holding company, the commercial paper or other short
term debt obligations of such holding company) have been rated by each Rating Agency in its highest short term rating category, or
(iii) a segregated trust account or accounts (which shall be a "special deposit account") maintained with the Trustee, the Trust
Administrator or any other federal or state chartered depository institution or trust company, acting in its fiduciary capacity, in a
manner acceptable to the Trustee, the Trust Administrator and the Rating Agencies. Eligible Accounts may bear interest.
Eligible Institution: An institution having the highest short term debt rating, and one of the two highest long
term debt ratings of the Rating Agencies or the approval of the Rating Agencies.
Eligible Investments: Any one or more of the obligations and securities listed below:
1. direct obligations of, and obligations fully guaranteed by, the United States of America, or any agency or instrumentality
of the United States of America the obligations of which are backed by the full faith and credit of the United States of
America; or obligations fully guaranteed by, the United States of America; the FHLMC, FNMA, the Federal Home Loan Banks or
any agency or instrumentality of the United States of America rated AA (or the equivalent) or higher by the Rating Agencies;
2. federal funds, demand and time deposits in, certificates of deposits of, or bankers' acceptances issued by, any depository
institution or trust company incorporated or organized under the laws of the United States of America or any state thereof
and subject to supervision and examination by federal and/or state banking authorities, so long as at the time of such
investment or contractual commitment providing for such investment the commercial paper or other short term debt obligations
of such depository institution or trust company (or, in the case of a depository institution or trust company which is the
principal subsidiary of a holding company, the commercial paper or other short term debt obligations of such holding
company) are rated in one of two of the highest ratings by each of the Rating Agencies, and the long term debt obligations
of such depository institution or trust company (or, in the case of a depository institution or trust company which is the
principal subsidiary of a holding company, the long term debt obligations of such holding company) are rated in one of two
of the highest ratings, by each of the Rating Agencies;
3. 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 a principal) in the highest rated category by the
Rating Agencies; 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 price plus accrued interest, (B) pursuant to
such valuation, be equal, at all times, to 105% of the cash transferred by the Trustee or the Trust Administrator in
exchange for such collateral, and (C) be delivered to the Trustee or the Trust Administrator or, if the Trustee or the Trust
Administrator, as applicable, is supplying the collateral, an agent for the Trustee or the Trust Administrator, in such a
manner as to accomplish perfection of a security interest in the collateral by possession of certificated securities;
4. securities bearing interest or sold at a discount issued by any corporation incorporated under the laws of the United States
of America or any state thereof which has a long term unsecured debt rating in the highest available rating category of each
of the Rating Agencies at the time of such investment;
5. commercial paper having an original maturity of less than 365 days and issued by an institution having a short term
unsecured debt rating in the highest available rating category of each of the Rating Agencies that rates such securities, at
the time of such investment;
6. a guaranteed investment contract approved by each of the Rating Agencies and issued by an insurance company or other
corporation having a long term unsecured debt rating in the highest available rating category of each of the Rating Agencies
at the time of such investment;
7. money market funds (which may be 12b-1 funds as contemplated under the rules promulgated by the Securities and Exchange
Commission under the Investment Company Act of 1940) having ratings in the highest available rating category of Xxxxx'x and
rated "AAAm" or "AAAm-G" by S&P at the time of such investment (any such money market funds which provide for demand
withdrawals being conclusively deemed to satisfy any maturity requirements for Eligible Investments set forth herein)
including money market funds of the Master Servicer, a Servicer, the Trustee or the Trust Administrator and any such funds
that are managed by the Master Servicer, a Servicer, the Trustee or the Trust Administrator or their respective Affiliates
or for the Master Servicer, a Servicer, the Trustee or the Trust Administrator or any Affiliate of such Person acts as
advisor, as long as such money market funds satisfy the criteria of this subparagraph 7; and
8. such other investments the investment in which will not, as evidenced by a letter from each of the Rating Agencies, result
in the downgrading or withdrawal of the Ratings of the Certificates;
provided, however, that no such instrument shall be an Eligible Investment if such instrument evidences either (i) a right
to receive only interest payments with respect to the obligations underlying such instrument, or (ii) both principal and
interest payments derived from obligations underlying such instrument and the principal and interest payments with respect
to such instrument provide a yield to maturity of greater than 120% of the yield to maturity at par of such underlying
obligations.
ERISA: The Employee Retirement Income Security Act of 1974, as amended.
ERISA-Qualifying Underwriting: A best efforts or firm commitment underwriting or private placement that meets the
requirements (without regard to the ratings requirements) of an Underwriter's Exemption.
ERISA Restricted Certificate: As set forth in the Preliminary Statement.
Escrow Account: The separate account or accounts created and maintained by a Servicer pursuant to Section 3.06.
Escrow Payments: With respect to any Mortgage Loan, the amounts constituting ground rents, taxes, mortgage
insurance premiums, fire and hazard insurance premiums, and any other payments required to be escrowed by the Mortgagor with the
mortgagee pursuant to the Mortgage, applicable law or any other related document.
Event of Default: As defined in Section 8.01 hereof.
Excess Loss: The amount of any (i) Fraud Loss in excess of the Fraud Loss Coverage Amount on a Mortgage Loan in
Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4 or Loan Group 5 realized after the Fraud Loss Coverage Termination Date,
(ii) Special Hazard Loss in excess of the Special Hazard Loss Coverage Amount on a Mortgage Loan in Loan Group 1, Loan Group 2, Loan
Group 3, Loan Group 4 or Loan Group 5 realized after the Special Hazard Coverage Termination Date or (iii) Bankruptcy Loss in excess
of the Bankruptcy Loss Coverage Amount on a Mortgage Loan in Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4 or Loan Group 5
realized after the Bankruptcy Coverage Termination Date.
Exchange Act: The Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder.
Expense Fee Rate: As to each Mortgage Loan, the sum of the related Servicing Fee Rate, the Trust Administrator Fee
Rate, if applicable, and the rate at which the premium on a Lender Paid Mortgage Guaranty Insurance Policy is calculated, if
applicable.
Expense Fees: As to each Mortgage Loan and Distribution Date, the sum of the related Servicing Fee, the Trust
Administrator Fee, if applicable, and any premium on any Lender Paid Mortgage Guaranty Insurance Policy, if applicable.
FDIC: The Federal Deposit Insurance Corporation, or any successor thereto.
FHLMC: The Federal Home Loan Mortgage Corporation, a corporate instrumentality of the United States created and
existing under Title III of the Emergency Home Finance Act of 1970, as amended, or any successor thereto.
Financing Statement: A financing statement, as applicable, filed pursuant to the Uniform Commercial Code to perfect
a security interest in the Cooperative Shares and Pledge Instruments.
FNMA: The Federal National Mortgage Association, a federally chartered and privately owned corporation organized
and existing under the Federal National Mortgage Association Charter Act, or any successor thereto.
Form 8-K Disclosure Information: As defined in Section 13.04.
Formula Rate: With respect to the Class 6-A-1 Certificates, the per annum rate set forth or calculated in the
manner described in the Preliminary Statement. Interest on the Class 6-A-1 Certificates (to the extent it is entitled to interest
from Loan Group 6) will be computed on the basis of a 360-day year and the actual number of days elapsed in the related Accrual
Period. On any Swap Payment Date on which there has occurred a Swap Suspension Event, the Formula Rate for the Class 6-A-1
Certificates on the related Distribution Date will be the lesser of (a) the sum of the applicable Certificate Index and the
applicable Certificate Margin for such Distribution Date and (b) the Net Funds Cap.
Fraud Loan: A Liquidated Mortgage Loan in Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4 or Loan Group 5 as
to which a Fraud Loss has occurred.
Fraud Loss Coverage Amount: The aggregate amount of Fraud Losses that are allocated solely to the Class C-B
Certificates, as of the Closing Date, $21,401,098.89, subject to reduction from time to time by the amount of Fraud Losses allocated
to the Class C-B Certificates. In addition, (a) on each anniversary prior to the fifth anniversary of the Cut-off Date, the Fraud
Loss Coverage Amount will be reduced to an amount equal to the lesser of (A) 1.00% of the Aggregate Groups 1-5 Collateral Balance as
of such date, and (B) the excess of the Fraud Loss Coverage Amount as of the preceding anniversary of the Cut-off Date over the
cumulative amount of Fraud Losses on the Mortgage Loans in Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4 and Loan Group 5
allocated to the Class C-B Certificates since such preceding anniversary or the Cut-off Date, and (b) on the fifth anniversary of the
Cut-off Date, zero. The Fraud Loss Coverage Amount may be reduced below the amount set forth above for any Distribution Date with
the consent of the Rating Agencies as evidenced by a letter of each Rating Agency to the Trust Administrator to the effect that any
such reduction will not result in a downgrading of the current ratings assigned to such Classes of Certificates rated by it.
Fraud Loss Coverage Termination Date: The point in time at which the applicable Fraud Loss Coverage Amount has been
reduced to zero.
Fraud Losses: Realized Losses on the Liquidated Mortgage Loans in Loan Group 1, Loan Group 2, Loan Group 3, Loan
Group 4 and Loan Group 5 as to which a loss is sustained by reason of a default arising from fraud, dishonesty or misrepresentation
in connection with the related Mortgage Loan, including a loss by reason of the denial of coverage under any related Mortgage
Guaranty Insurance Policy because of such fraud, dishonesty or misrepresentation.
Gross Margin: With respect to any Mortgage Loan, the fixed percentage amount set forth in the related Mortgage Note
and the Mortgage Loan Schedule that is added to the Index on each Adjustment Date in accordance with the terms of the related
Mortgage Note to determine the new Mortgage Rate for such Mortgage Loan.
Group: When used with respect to the Mortgage Loans, any of Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4,
Loan Group 5 or Loan Group 6, or with respect to the Certificates, the Class or Classes of Certificates that relate to the
corresponding Group or Groups.
Group 1: With respect to the Mortgage Loans, the pool of adjustable rate Mortgage Loans identified in the Mortgage
Loan Schedule as having been assigned to Group 1 or with respect to the Certificates, the Group 1 Certificates (as specified in the
Preliminary Statement).
Group 1 Senior Liquidation Amount: With respect to any Distribution Date, the aggregate, for each Mortgage Loan in
Loan Group 1 which became a Liquidated Mortgage Loan during the prior calendar month, of the lesser of (i) the Group 1 Senior
Percentage of the Stated Principal Balance of such Mortgage Loan and (ii) the applicable Senior Prepayment Percentage of the
Liquidation Principal with respect to such Mortgage Loan.
Group 1 Senior Percentage: With respect to any Distribution Date, the percentage equivalent of a fraction the
numerator of which is the aggregate Class Principal Balance of the Group 1 Certificates immediately prior to such Distribution Date
and the denominator of which is the aggregate of the Stated Principal Balances of the Mortgage Loans in Loan Group 1 as of the first
day of the related Collection Period (excluding any Group 1 Mortgage Loans that were subject to a Payoff, the principal of which was
distributed on the Distribution Date preceding the current Distribution Date); provided, however, in no event will the Group 1 Senior
Percentage exceed 100%.
Group 1 Senior Principal Distribution Amount: With respect to any Distribution Date, the sum of (i) the Group 1
Senior Percentage of the Principal Payment Amount for Loan Group 1, (ii) the applicable Senior Prepayment Percentage of the Principal
Prepayment Amount for Loan Group 1, and (iii) the Group 1 Senior Liquidation Amount.
Group 1 Subordinate Percentage: For any Distribution Date, the excess of 100% over the Group 1 Senior Percentage.
Group 2: With respect to the Mortgage Loans, the pool of adjustable rate Mortgage Loans identified in the Mortgage
Loan Schedule as having been assigned to Group 2 or with respect to the Certificates, the Group 2 Certificates (as specified in the
Preliminary Statement).
Group 2 Senior Liquidation Amount: With respect to any Distribution Date, the aggregate, for each Mortgage Loan in
Loan Group 2 which became a Liquidated Mortgage Loan during the prior calendar month, of the lesser of (i) the Group 2 Senior
Percentage of the Stated Principal Balance of such Mortgage Loan and (ii) the applicable Senior Prepayment Percentage of the
Liquidation Principal with respect to such Mortgage Loan.
Group 2 Senior Percentage: With respect to any Distribution Date, the percentage equivalent of a fraction the
numerator of which is the aggregate Class Principal Balance of the Group 2 Certificates immediately prior to such Distribution Date
and the denominator of which is the aggregate of the Stated Principal Balances of the Mortgage Loans in Loan Group 2 as of the first
day of the related Collection Period (excluding any Group 2 Mortgage Loans that were subject to a Payoff, the principal of which was
distributed on the Distribution Date preceding the current Distribution Date); provided, however, in no event will the Group 2 Senior
Percentage exceed 100%.
Group 2 Senior Principal Distribution Amount: With respect to any Distribution Date, the sum of (i) the Group 2
Senior Percentage of the Principal Payment Amount for Loan Group 2, (ii) the applicable Senior Prepayment Percentage of the Principal
Prepayment Amount for Loan Group 2, and (iii) the Group 2 Senior Liquidation Amount.
Group 2 Subordinate Percentage: For any Distribution Date, the excess of 100% over the Group 2 Senior Percentage.
Group 3: With respect to the Mortgage Loans, the pool of adjustable rate Mortgage Loans identified in the Mortgage
Loan Schedule as having been assigned to Group 3 or with respect to the Certificates, the Group 3 Certificates (as specified in the
Preliminary Statement).
Group 3 Senior Liquidation Amount: With respect to any Distribution Date, the aggregate, for each Mortgage Loan in
Loan Group 3 which became a Liquidated Mortgage Loan during the prior calendar month, of the lesser of (i) the Group 3 Senior
Percentage of the Stated Principal Balance of such Mortgage Loan and (ii) the applicable Senior Prepayment Percentage of the
Liquidation Principal with respect to such Mortgage Loan.
Group 3 Senior Percentage: With respect to any Distribution Date, the percentage equivalent of a fraction the
numerator of which is the aggregate Class Principal Balance of the Group 3 Certificates immediately prior to such Distribution Date
and the denominator of which is the aggregate of the Stated Principal Balances of the Mortgage Loans in Loan Group 3, as of the first
day of the related Collection Period (excluding any such Mortgage Loans that were subject to a Payoff, the principal of which was
distributed on the Distribution Date preceding the current Distribution Date); provided, however, in no event will the Group 3 Senior
Percentage exceed 100%.
Group 3 Senior Principal Distribution Amount: With respect to any Distribution Date, the sum of (i) the Group 3
Senior Percentage of the Principal Payment Amount for Loan Group 3, (ii) the applicable Senior Prepayment Percentage of the Principal
Prepayment Amount for Loan Group 3, and (iii) the Group 3 Senior Liquidation Amount.
Group 3 Subordinate Percentage: For any Distribution Date, the excess of 100% over the Group 3 Senior Percentage.
Group 4: With respect to the Mortgage Loans, the pool of adjustable rate Mortgage Loans identified in the Mortgage
Loan Schedule as having been assigned to Group 4 or with respect to the Certificates, the Group 4 Certificates (as specified in the
Preliminary Statement).
Group 4 Senior Liquidation Amount: With respect to any Distribution Date, the aggregate, for each Mortgage Loan in
Loan Group 4 which became a Liquidated Mortgage Loan during the prior calendar month, of the lesser of (i) the Group 4 Senior
Percentage of the Stated Principal Balance of such Mortgage Loan and (ii) the applicable Senior Prepayment Percentage of the
Liquidation Principal with respect to such Mortgage Loan.
Group 4 Senior Percentage: With respect to any Distribution Date, the percentage equivalent of a fraction the
numerator of which is the aggregate Class Principal Balance of the Group 4 Certificates immediately prior to such Distribution Date
and the denominator of which is the aggregate of the Stated Principal Balances of the Mortgage Loans in Loan Group 4, as of the first
day of the related Collection Period (excluding any such Mortgage Loans that were subject to a Payoff, the principal of which was
distributed on the Distribution Date preceding the current Distribution Date); provided, however, in no event will the Group 4 Senior
Percentage exceed 100%.
Group 4 Senior Principal Distribution Amount: With respect to any Distribution Date, the sum of (i) the Group 4
Senior Percentage of the Principal Payment Amount for Loan Group 4, (ii) the applicable Senior Prepayment Percentage of the Principal
Prepayment Amount for Loan Group 4, and (iii) the Group 4 Senior Liquidation Amount.
Group 4 Subordinate Percentage: For any Distribution Date, the excess of 100% over the Group 4 Senior Percentage.
Group 5: With respect to the Mortgage Loans, the pool of adjustable rate Mortgage Loans identified in the Mortgage
Loan Schedule as having been assigned to Group 5 or with respect to the Certificates, the Group 5 Certificates (as specified in the
Preliminary Statement).
Group 5 Senior Liquidation Amount: With respect to any Distribution Date, the aggregate, for each Mortgage Loan in
Loan Group 5 which became a Liquidated Mortgage Loan during the prior calendar month, of the lesser of (i) the Group 5 Senior
Percentage of the Stated Principal Balance of such Mortgage Loan and (ii) the applicable Senior Prepayment Percentage of the
Liquidation Principal with respect to such Mortgage Loan.
Group 5 Senior Percentage: With respect to any Distribution Date, the percentage equivalent of a fraction the
numerator of which is the aggregate Class Principal Balance of the Group 5 Certificates immediately prior to such Distribution Date
and the denominator of which is the aggregate of the Stated Principal Balances of the Mortgage Loans in Loan Group 5, as of the first
day of the related Collection Period (excluding any such Mortgage Loans that were subject to a Payoff, the principal of which was
distributed on the Distribution Date preceding the current Distribution Date); provided, however, in no event will the Group 5 Senior
Percentage exceed 100%.
Group 5 Senior Principal Distribution Amount: With respect to any Distribution Date, the sum of (i) the Group 5
Senior Percentage of the Principal Payment Amount for Loan Group 5, (ii) the applicable Senior Prepayment Percentage of the Principal
Prepayment Amount for Loan Group 5, and (iii) the Group 5 Senior Liquidation Amount.
Group 5 Subordinate Percentage: For any Distribution Date, the excess of 100% over the Group 5 Senior Percentage.
Group 6: With respect to the Mortgage Loans, the pool of adjustable rate Mortgage Loans identified in the Mortgage
Loan Schedule as having been assigned to Group 6 or with respect to the Certificates, the Group 6 Certificates.
Group 6 Certificates: As set forth in the Preliminary Statement.
Group 6 Credit Support Depletion Date: The first Distribution Date on which the aggregate Class Principal Balance
of the Group 6 Subordinate Certificates has been or will be reduced to zero.
Group 6 Interest Rate Cap Account: The separate Eligible Account created and initially maintained by the Trust
Administrator pursuant to Section 4.10 in the name of the Trust Administrator for the benefit of the Certificateholders and
designated "Xxxxx Fargo Bank, N.A. in trust for registered holders of Adjustable Rate Mortgage Trust 2006-1, Adjustable Rate
Mortgage-Backed Pass-Through Certificates, Series 2006-1, Group 6 Certificates" Funds in the Group 6 Interest Rate Cap Account shall
be held in trust for the Certificateholders for the uses and purposes set forth in this Agreement. The Group 6 Interest Rate Cap
Account will not be an asset of any REMIC. Ownership of the Group 6 Interest Rate Cap Account is evidenced by the Class 6-X
Certificates.
Group 6 Interest Rate Cap Agreement: The interest rate cap agreement relating to the Group 6 Certificates consisting
of the ISDA Master Agreement, the Schedule and the Credit Support Annex, each dated as of the Closing Date and the Confirmations
related thereto, between the Trustee on behalf of the Trust and the Group 6 Interest Rate Cap Counterparty, as such agreement may be
amended and supplemented in accordance with its terms and any replacement Group 6 Interest Rate Cap Agreement acceptable to the
Depositor and the Trustee.
Group 6 Interest Rate Cap Counterparty: Credit Suisse International, or any successor in interest thereto under the
Group 6 Interest Rate Cap Agreement.
Group 6 Senior Certificates: As set forth in the Preliminary Statement.
Group 6 Senior Enhancement Percentage: For any Distribution Date, the fraction, expressed as a percentage, the
numerator of which is the sum of the aggregate Class Principal Balance of the Class M Certificates and the Overcollateralization
Amount (which, for purposes of this definition only, shall not be less than zero), in each case after giving effect to payments on
such Distribution Date (assuming no Trigger Event has occurred), and the denominator of which is the Aggregate Loan Group Balance for
Loan Group 6 for such Distribution Date.
Group 6 Senior Principal Payment Amount: For any Distribution Date on or after the Stepdown Date and as long as a
Trigger Event has not occurred with respect to such Distribution Date, will be the amount, if any, by which (x) the aggregate Class
Principal Balance of the Group 6 Senior Certificates, immediately prior to such Distribution Date exceeds (y) the lesser of (A) the
product of (i) 80.50% and (ii) the Aggregate Loan Group Balance for Loan Group 6 for such Distribution Date and (B) the amount, if
any, by which (i) the Aggregate Loan Group Balance for Loan Group 6 for such Distribution Date exceeds (ii) 0.50% of the Aggregate
Loan Group Balance for Loan Group 6 as of the Initial Cut-off Date.
Group 6 Subordinate Certificates: As set forth in the Preliminary Statement.
Index: With respect to any Mortgage Loan and each related Adjustment Date, the index as specified in the related
Mortgage Note.
Indirect Participants: Entities, such as banks, brokers, dealers and trust companies, that clear through or
maintain a custodial relationship with a Participant, either directly or indirectly.
Initial Bankruptcy Loss Coverage Amount: $362,954.80.
Initial Class Principal Balance: As set forth in the Preliminary Statement.
Initial Cut-off Date: February 1, 2006.
Initial Mortgage Loans: The initial Mortgage Loans conveyed by the Depositor to the Trust Fund pursuant to
Section 2.01 hereof on the Closing Date, which are listed on the Mortgage Loan Schedule on such date.
Insurance Policy: With respect to any Mortgage Loan included in the Trust Fund, any Mortgage Guaranty Insurance
Policy, any standard hazard insurance policy, flood insurance policy or title insurance policy, including all riders and endorsements
thereto in effect, including any replacement policy or policies for any Insurance Policies.
Insurance Proceeds: Proceeds of any primary mortgage guaranty insurance policies, including, without limitation,
any other Insurance Policies with respect to the Mortgage Loans, to the extent such proceeds are not applied to the restoration of
the related Mortgaged Property or released to the Mortgagor in accordance with the related Servicer's or Designated Servicer's normal
servicing procedures.
Interest Determination Date: With respect to the LIBOR Certificates and for each Accrual Period, the second LIBOR
Business Day preceding the commencement of such Accrual Period.
Interest Distribution Amount: With respect to any Distribution Date and interest bearing Class of Group 1, Group 2,
Group 3, Group 4, Group 5 and Class C-B Certificates, the sum of (i) one month's interest accrued during the related Accrual Period
at the applicable Pass-Through Rate for such Class on the related Class Principal Balance or Class Notional Amount, as applicable,
subject to reduction pursuant to Section 4.01(I)(B), and (ii) any Class Unpaid Interest Amounts for such Class and Distribution Date.
Interest Remittance Amount: For any Distribution Date and the Mortgage Loans in Loan Group 6, an amount equal to
the sum of (1) all interest collected (other than Payaheads) or advanced in respect of Scheduled Payments on the Mortgage Loans in
such Loan Group during the related Collection Period, the interest portion of Payaheads previously received on the Mortgage Loans in
such Loan Group and intended for application in the related Collection Period and interest portion of all Payoffs (net of Payoff
Interest for such Distribution Date) and Curtailments received on the Mortgage Loans in such Loan Group during the related Prepayment
Period, less (x) the applicable Expense Fees with respect to such Mortgage Loans and (y) unreimbursed Advances and other amounts due
to the Master Servicer, the applicable Servicer, the Back-Up Servicer and the Trust Administrator with respect to such Mortgage
Loans, to the extent allocable to interest, (2) all Compensating Interest Payments paid by a Servicer with respect to the Mortgage
Loans in such Loan Group with respect to the related Prepayment Period, (3) the portion of any Substitution Adjustment Amount and
Purchase Price paid with respect to the Mortgage Loans in such Loan Group during the related Collection Period, in each case
allocable to interest and the proceeds of any purchase of such Mortgage Loans by the Terminating Entity pursuant to Section 11.01 in
an amount not exceeding the interest portion of the Par Value with respect to such Mortgage Loans, (4) all Net Liquidation Proceeds
and recoveries (net of unreimbursed Advances, Servicing Advances and expenses, to the extent allocable to interest, and unpaid
Expense Fees), if any, collected with respect to the Mortgage Loans in such Loan Group during the prior calendar month, to the extent
allocable to interest and (5) the Capitalized Interest Distribution for such Distribution Date.
Interest Shortfall: For any Distribution Date and the Mortgage Loans in Loan Group 6, an amount equal to the
aggregate shortfall, if any, in collections of interest (adjusted to the related Net Mortgage Rate) on Mortgage Loans in Loan Group 6
resulting from (a) Principal Prepayments received during the related Prepayment Period after giving effect to the Compensating
Interest Payment for such Distribution Date and (b) interest payments on certain of the Mortgage Loans in Loan Group 6 being limited
pursuant to the provisions of the Relief Act.
LaSalle: LaSalle Bank, National Association.
LaSalle Bank Custodial Agreement: That certain Custodial Agreement dated as of February 1, 2006 among LaSalle, the
Trustee and the Trust Administrator.
Lender Paid Mortgage Guaranty Insurance Policy: Any lender paid Mortgage Guaranty Insurance Policy.
LIBOR Business Day: Any day other than (i) a Saturday or a Sunday or (ii) a day on which banking institutions in
the State of New York or in the City of London, England are required or authorized by law to be closed.
LIBOR Certificates: As set forth in the Preliminary Statement.
Liquidated Mortgage Loan: With respect to any Distribution Date, a defaulted Mortgage Loan (including any
REO Property) which was liquidated in the calendar month preceding the month of such Distribution Date and as to which a Servicer, has
determined (with respect to the Non-Designated Mortgage Loans, in accordance with this Agreement, or with respect to the Designated
Mortgage Loans, in accordance with the related Designated Servicing Agreement) that it has received all amounts it expects to receive
in connection with the liquidation of such Mortgage Loan, including the final disposition of the related REO Property, whether from
Insurance Proceeds, Liquidation Proceeds or otherwise.
Liquidation Expenses: Customary and reasonable "out of pocket" expenses incurred by a Servicer (or the related
Sub-Servicer) in connection with the liquidation of any defaulted Mortgage Loan and not recovered by the related Servicer (or the
related Sub-Servicer) under a Mortgage Guaranty Insurance Policy for reasons other than such Servicer's failure to comply with
Section 3.09 hereof, such expenses including, without limitation, legal fees and expenses, any unreimbursed amount expended by a
Servicer pursuant to Section 3.11 hereof respecting the related Mortgage and any related and unreimbursed expenditures for real
estate property taxes or for property restoration or preservation to the extent not previously reimbursed under any hazard insurance
policy for reasons other than such Servicer's failure to comply with Section 3.11 hereof.
Liquidation Principal: With respect to any Distribution Date and a Loan Group, the principal portion of Net
Liquidation Proceeds received with respect to each Mortgage Loan in that Loan Group, but not in excess of the principal balance of
such Mortgage Loan, which became a Liquidated Mortgage Loan (but not in excess of the principal balance thereof) during the preceding
calendar month, exclusive of the portion thereof, if any, attributable to Assigned Prepayment Premiums.
Liquidation Proceeds: Amounts, including Insurance Proceeds, received in connection with the partial or complete
liquidation of defaulted Mortgage Loans, whether through trustee's sale, foreclosure sale or otherwise or amounts received in
connection with any condemnation or partial release of a Mortgaged Property related to a Mortgage Loan and any other proceeds
received in connection with an REO Property, other than Recoveries.
Loan Group: Any of Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4, Loan Group 5 or Loan Group 6, as
applicable. Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4 and Loan Group 5 together will constitute one sub-trust and Loan
Group 6 will constitute another sub-trust.
Loan Group 1: All Mortgage Loans identified as Loan Group 1 Mortgage Loans on the Mortgage Loan Schedule.
Loan Group 2: All Mortgage Loans identified as Loan Group 2 Mortgage Loans on the Mortgage Loan Schedule.
Loan Group 3: All Mortgage Loans identified as Loan Group 3 Mortgage Loans on the Mortgage Loan Schedule.
Loan Group 4: All Mortgage Loans identified as Loan Group 4 Mortgage Loans on the Mortgage Loan Schedule.
Loan Group 5: All Mortgage Loans identified as Loan Group 5 Mortgage Loans on the Mortgage Loan Schedule.
Loan Group 6: All Mortgage Loans identified as Loan Group 6 Mortgage Loans on the Mortgage Loan Schedule.
Loan-to-Value Ratio: As of any date, the fraction, expressed as a percentage, the numerator of which is the Stated
Principal Balance of the related Mortgage Loan at the date of determination and the denominator of which is the Appraised Value of
the Mortgaged Property.
Loss and Delinquency Test: With respect to the SPS Mortgage Loans, SPS will fail the Loss and Delinquency Test on
any date of determination as to which (i) the aggregate outstanding principal balance of the SPS Mortgage Loans delinquent 60 days or
more (including all related REO Properties and related Mortgage Loans in foreclosure) (averaged over the preceding six month period),
as a percentage of the aggregate principal balance of the SPS Mortgage Loans as of the first day of the month of such determination
is equal to or greater than 50% or (ii) cumulative Realized Losses for the SPS Mortgage Loans exceed (a) with respect to any month
prior to the third anniversary of the first Distribution Date, 20% of the aggregate principal balance of the SPS Mortgage Loans as of
the Closing Date (the "Original SPS Mortgage Loan Principal Balance"), (b) with respect to any month on or after the third
anniversary but prior to the eighth anniversary of the first Distribution Date, 30% of the Original SPS Mortgage Loan Principal
Balance, (c) with respect to any month on or after the eighth anniversary but prior to the ninth anniversary of the first
Distribution Date, 35% of the Original SPS Mortgage Loan Principal Balance, (d) with respect to any month on or after the ninth
anniversary but prior to the tenth anniversary of the first Distribution Date, 40% of the Original SPS Mortgage Loan Principal
Balance, (e) with respect to any month on or after the tenth anniversary but prior to the eleventh anniversary of the first
Distribution Date, 45% of the Original SPS Principal Balance and (f) with respect to any month on or after the eleventh anniversary
of the first Distribution Date, 50% of the Original SPS Mortgage Loan Principal Balance. For purposes of this definition, the term
"Realized Losses" shall not include Debt Service Reductions or Deficient Valuations.
Lost Mortgage Note: Any Mortgage Note the original of which was permanently lost or destroyed and has not been
replaced.
Majority Servicer: With respect to any Optional Termination, the Servicer servicing the largest percentage of
Mortgage Loans in the Loan Group(s) to be purchased in such Optional Termination (by Stated Principal Balance of outstanding Mortgage
Loans on the Optional Termination Date) which has notified the Trust Administrator of its intention to be the Terminating Entity of
such Loan Group(s) pursuant to Section 11.02(a).
Marker Rate: With respect to the Class 6-X Certificates and REMIC II Regular Interests LT1, LT2, LT3 and LT4 and
any Distribution Date, a per annum rate equal to two (2) times the weighted average of the Uncertificated REMIC II Pass-Through Rates
for REMIC II Regular Interest LT2 and REMIC II Regular Interest LT3.
Master Servicer: Xxxxx Fargo.
Maturity Date: The Distribution Date occurring in March 2036.
Maximum Interest Rate: With respect to the Group 6 Certificates and any Distribution Date, an annual rate equal to
the weighted average of the Maximum Mortgage Rates of the Mortgage Loans in Loan Group 6 minus the weighted average Expense Fee Rate
of the Mortgage Loans in Loan Group 6.
Maximum Mortgage Rate: With respect to each 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® Mortgage Loan: Any Mortgage Loan registered with MERS on the MERS(R) System.
MERS(R) System: The system of recording transfers of mortgages electronically maintained by MERS.
MIN: The mortgage identification number for any MERS Mortgage Loan.
Minimum Mortgage Rate: With respect to each Mortgage Loan, the percentage set forth in the related Mortgage Note as
the minimum Mortgage Rate thereunder.
MOM Loan: Any Mortgage Loan as to which MERS is acting as mortgagee, solely as nominee fro the originator of such
Mortgage Loan and its successors and assigns.
Monthly Excess Cashflow: For any Distribution Date, an amount equal to the sum of the Monthly Excess Interest,
Overcollateralization Release Amount, if any for such date, and any Principal Payment Amount remaining after the application of items
(i) through (v) in the distribution thereof pursuant to Section 4.01(II)(a), (b) or (c), as applicable.
Monthly Excess Interest: For any Distribution Date, any Interest Remittance Amount remaining after the application
of items (i) through (v) in the distribution thereof, pursuant to Section 4.01(II)(a).
Moody's: Xxxxx'x Investors Service, Inc. or any successor thereto.
Mortgage: With respect to a Mortgage Loan, the mortgage, deed of trust or other instrument creating a first lien on
a fee simple or leasehold estate securing a Mortgage Note.
Mortgaged Property: The underlying real property securing a Mortgage Loan or, with respect to a Cooperative Loan,
the related Cooperative Shares and Proprietary Lease.
Mortgage File: For each Mortgage Loan, the Trustee Mortgage File and the Servicer Mortgage File.
Mortgage Guaranty Insurance Policy: Each policy of primary mortgage guaranty insurance or any replacement policy
therefor with respect to any Mortgage Loan.
Mortgage Loans: Such of the mortgage loans and cooperative loans (if any) transferred and assigned to the Trustee
pursuant to the provisions hereof as from time to time are held as a part of the Trust Fund (including any REO Property), the
mortgage loans so held being identified in the Mortgage Loan Schedule, notwithstanding foreclosure or other acquisition of title of
the related Mortgaged Property. With respect to each Mortgage Loan that is a Cooperative Loan, if any, "Mortgage Loan" shall
include, but not be limited to, the related Mortgage Note, Security Agreement, Assignment of Proprietary Lease, Recognition
Agreement, Cooperative Shares and Proprietary Lease and, with respect to each Mortgage Loan other than a Cooperative Loan, "Mortgage
Loan" shall include, but not be limited to the related Mortgages and the related Mortgage Notes.
Mortgage Loan Purchase Price: The price, calculated as set forth in Section 11.01, to be paid in connection with
the purchase of the Mortgage Loans pursuant to an Optional Termination of the Trust Fund.
Mortgage Loan Schedule: The list of Mortgage Loans (as from time to time amended by the Seller to reflect the
addition of Qualified Substitute Mortgage Loans and the purchase of Mortgage Loans pursuant to Sections 2.01, 2.02 or 2.03)
transferred to the Trustee as part of the Trust Fund and from time to time subject to this Agreement, attached hereto as Schedule I,
setting forth the following information with respect to each Mortgage Loan and applicable Servicer by Loan Group:
1. the Mortgage Loan identifying number;
2. a code indicating the type of Mortgaged Property and the occupancy status;
3. a code indicating the Servicer of the Mortgage Loan;
4. the original months to maturity;
5. the Loan-to-Value Ratio at origination;
6. the combined Loan-to-Value Ratio at origination;
7. a code indicating the existence of a subordinate lien for the related mortgaged property;
8. the related borrower's debt-to-income ratio at origination;
9. the related borrower's credit score at origination;
10. the Mortgage Rate as of the Cut-off Date;
11. the stated maturity date;
12. the amount of the Scheduled Payment as of the Cut-off Date;
13. the original principal amount of the Mortgage Loan;
14. the principal balance of the Mortgage Loan as of the close of business on the Cut-off Date, after deduction of payments of
principal due on or before the Cut-off Date whether or not collected;
15. the purpose of the Mortgage Loan (i.e., purchase, rate and term refinance, equity take-out refinance);
16. a code indicating whether a Prepayment Premium is required to be paid in connection with a prepayment of the Mortgage Loan
and the term and the amount of the Prepayment Premium;
17. an indication whether the Mortgage Loan accrues interest at an adjustable Mortgage Rate or a fixed Mortgage Rate;
18. the Index that is associated with such Mortgage Loan, if applicable;
19. the Gross Margin, if applicable;
20. the Periodic Rate Cap, if applicable;
21. the Minimum Mortgage Rate, if applicable;
22. the Maximum Mortgage Rate, if applicable;
23. the first Adjustment Date after the Cut-off Date, if applicable;
24. the Servicing Fee Rate;
25. the Expense Fee Rate;
26. a code indicating whether the Mortgage Loan is covered under a borrower paid or lender paid Primary Insurance Policy (and,
if so, the name of the insurance carrier) and the rate at which any lender paid Primary Insurance Policy premium is calculated, if
applicable; and
27. a code indicating whether the Mortgage Loan is a MERS Mortgage Loan and, if so, its corresponding MIN.
With respect to the Mortgage Loans in the aggregate, each Mortgage Loan Schedule shall set forth the following
information, as of the Cut-off Date:
1. the number of Mortgage Loans;
2. the current aggregate principal balance of the Mortgage Loans as of the close of business on the Cut-off Date, after
deduction of payments of principal due on or before the Cut-off Date whether or not collected; and
3. the weighted average Mortgage Rate of the Mortgage Loans.
Mortgage Note: The original executed note or other evidence of the indebtedness of a Mortgagor under a Mortgage
Loan.
Mortgage Rate: The annual rate of interest borne by a Mortgage Note.
Mortgagor: The obligor on a Mortgage Note.
Net Excess Spread: With respect to any Distribution Date and Loan Group 6, a fraction, expressed as a percentage,
the numerator of which is equal to the excess of (x) the Aggregate Loan Group Balance for Loan Group 6 for the immediately preceding
Distribution Date, multiplied by the product of (A) the Net WAC Rate for Loan Group 6 and (B) the actual number of days elapsed in
the related Accrual Period divided by 360 over (y) the aggregate Current Interest for Loan Group 6 for such Distribution Date, and
the denominator of which is an amount equal to the Aggregate Loan Group Balance for Loan Group 6 for the immediately preceding
Distribution Date, multiplied by the actual number of days elapsed in the related Accrual Period divided by 360.
Net Funds Cap: For any Distribution Date and the Group 6 Certificates (other than the Class 6-X Certificates and
other than the Class 6-A-1 Certificates except on any Distribution Date in which on the related Swap Payment Date a Swap Suspension
Event has occurred), will be a per annum rate equal to (a) a fraction, expressed as a percentage, the numerator of which is the
product of (1) the Optimal Interest Remittance Amount for such date and (2) 12, and the denominator of which is the Aggregate Loan
Group Balance for Loan Group 6 (excluding any such Mortgage Loans that were subject to a Payoff, the principal of which was
distributed on the Distribution Date preceding the current Distribution Date) for the immediately preceding Distribution Date (or, in
the case of the first Distribution Date, the Aggregate Loan Group Balance for Loan Group 6 as of the Cut-off Date, multiplied by
(b) a fraction, the numerator of which is 30 and the denominator of which is the actual number of days in the related Accrual Period.
Net Interest Shortfalls: For any Distribution Date and the Group 1, Group 2, Group 3, Group 4 and Group 5 Mortgage
Loans, the sum of (A) the amount of interest which would otherwise have been received for a Mortgage Loan in the related Loan
Group during the prior calendar month that was the subject of (x) a Relief Act Reduction or (y) a Special Hazard Loss, Fraud Loss or
Bankruptcy Loss, after the exhaustion of the respective amounts of coverage provided by the Class C-B Certificates for those types of
losses; and (B) any related Net Prepayment Interest Shortfalls.
Net Liquidation Proceeds: With respect to any Liquidated Mortgage Loan, the excess of the related Liquidation
Proceeds over the sum of Liquidation Expenses, Expense Fees and unreimbursed Advances and Servicing Advances.
Net Mortgage Rate: As to each Mortgage Loan, and at any time, the per annum rate equal to the Mortgage Rate for
such Mortgage Loan less the related Expense Fee Rate.
Net Prepayment Interest Shortfalls: With respect to any Distribution Date, the amount by which the aggregate of
Prepayment Interest Shortfalls during the related Prepayment Period exceeds the Compensating Interest Payment for such Distribution
Date.
Net Realized Losses: For any Class of Certificates, other than the Group 6 Certificates, and any Distribution Date,
the excess of (i) the amount of unreimbursed Realized Losses previously allocated to that Class over (ii) the sum of (a) the amount
of any increases to the Class Principal Balance of that Class pursuant to Section 4.03 due to Recoveries and (b) amounts previously
distributed to such Class in respect of Realized Losses pursuant to Section 4.01.
Net Recovery Realized Losses: For any Class of Certificates, other than the Group 6 Certificates, and any
Distribution Date, the excess of Net Realized Losses for such Distribution Date over the amount distributed in respect of Realized
Losses pursuant to Section 4.01 on that Distribution Date.
Net Swap Payments: A net payment (a) by the Supplemental Interest Trust Trustee, on behalf of the Supplemental
Interest Trust, to the Swap Counterparty, to the extent that the Supplemental Trust Payment exceeds the Swap Counterparty Payment for
such Swap Payment Date, or (b) by the Swap Counterparty to the Supplemental Interest Trust Trustee, on behalf of the Supplemental
Interest Trust, to the extent that the Swap Counterparty Payment payable to the Supplemental Interest Trust exceeds the Supplemental
Trust Payment for such Swap Payment Date.
Net WAC Rate: With respect to Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4 and Loan Group 5 and for any
Distribution Date, the Weighted Average Pass-Through Rate for such Loan Group for such Distribution Date.
In addition, for any purpose for which the Net WAC Rate is calculated, the interest rate on the Mortgage Loans shall
be appropriately adjusted to account for the difference between any counting convention used with respect to the Mortgage Loans and
any counting convention used with respect to a REMIC Regular Interest.
Non-Designated Mortgage Loans: The Mortgage Loans that are not Designated Mortgage Loans.
Nonrecoverable Advance: Any portion of an Advance or Servicing Advance previously made or proposed to be made by
the Master Servicer or a Servicer that, in the good faith judgment of the Master Servicer or a Servicer (as applicable), will not be
ultimately recoverable by the Master Servicer or a Servicer (as applicable) from the related Mortgagor, related Liquidation Proceeds
or otherwise from proceeds or collections on the related Mortgage Loan.
Notional Amount Certificates: As set forth in the Preliminary Statement.
Offered Certificates: As set forth in the Preliminary Statement.
Officer's Certificate: A certificate signed by the Chairman of the Board, any Vice Chairman of the Board, the
President, an Executive Vice President, Senior Vice President, a Vice President, or other authorized officer, the Treasurer, the
Secretary, or one of the Assistant Treasurers or Assistant Secretaries of the Depositor, the Seller, the Master Servicer, the
Servicers, the Special Servicer, a Sub-Servicer, the Trustee or the Trust Administrator, as the case may be, and delivered to the
Depositor, the Seller, the Master Servicer, the Special Servicer, the Servicers, the Trustee or the Trust Administrator, as required
by this Agreement.
Opinion of Counsel: A written opinion of counsel, who may be counsel for the Depositor, the Master Servicer or a
Servicer, including in-house counsel, reasonably acceptable to the Trustee and the Trust Administrator. With respect to the
definition of Eligible Account in this Article I and Sections 2.05 and 7.04 hereof and any opinion dealing with the qualification of
each REMIC created hereunder or compliance with the REMIC Provisions, such counsel must (i) in fact be independent of the Depositor,
the Master Servicer and such Servicer, (ii) not have any direct financial interest in the Depositor, the Master Servicer or such
Servicer or in any affiliate of either of them and (iii) not be connected with the Depositor, the Master Servicer or such Servicer as
an officer, employee, promoter, underwriter, trustee, partner, director or Person performing similar functions; provided, that with
respect to Xxxxx Fargo Bank, N.A. as Servicer, such counsel may be in-house counsel for Xxxxx Fargo Bank, N.A. as Servicer.
Optimal Interest Remittance Amount: With respect to any Distribution Date and Loan Group 6, the excess of (i) the
product of (1)(x) the weighted average of the Net Mortgage Rates of the Mortgage Loans in Loan Group 6 as of the first day of the
related Collection Period divided by (y) 12 and (2) the Aggregate Loan Group Balance for Loan Group 6 for the immediately preceding
Distribution Date (excluding any such Mortgage Loans that were subject to a Payoff, the principal of which was distributed on the
Distribution Date preceding the current Distribution Date), over (ii) any expenses that reduce the Interest Remittance Amount with
respect to Loan Group 6 that did not arise as a result of a default or delinquency of the Mortgage Loans in Loan Group 6 or were not
taken into account in computing the Expense Fee Rate.
Optional Termination: The purchase of the Mortgage Loans pursuant to Section 11.01.
Optional Termination Date: The date fixed by a Terminating Entity for the purchase of the Mortgage Loans pursuant
to Section 11.01.
Optional Termination Notice Period: The period during which notice is to be given to the affected
Certificateholders of an Optional Termination pursuant to Section 11.03(d).
OTS: The Office of Thrift Supervision.
Outsourcer: As defined in Section 3.02.
Overcollateralization Amount: For any Distribution Date, an amount equal to the amount, if any, by which (x) the
Aggregate Loan Group Balance for Loan Group 6 for such Distribution Date exceeds (y) the aggregate Class Principal Balance of the
Group 6 Certificates (other than the Class 6-X Certificates) after giving effect to payments on such Distribution Date.
Overcollateralization Deficiency: For any Distribution Date, the amount, if any, by which (x) the Targeted
Overcollateralization Amount for such Distribution Date exceeds (y) the Overcollateralization Amount for such Distribution Date,
calculated for this purpose after giving effect to the reduction on such Distribution Date of the aggregate Class Principal Balance
of the Group 6 Certificates (other than the Class 6-X Certificates) resulting from the payment of the Principal Payment Amount on
such Distribution Date but prior to allocation of any Applied Loss Amount on the Group 6 Certificates on such Distribution Date.
Overcollateralization Release Amount: For any Distribution Date, an amount equal to the lesser of (x) the Principal
Remittance Amount for such Distribution Date and (y) the amount, if any, by which (1) the Overcollateralization Amount for such date,
calculated for this purpose on the basis of the assumption that 100% of the Principal Remittance Amount for such date is applied on
such date in reduction of the aggregate of the Class Principal Balances of the Group 6 Certificates (other than the Class 6-X
Certificates), exceeds (2) the Targeted Overcollateralization Amount for such date.
Overcollateralized Group: As defined in Section 4.07(b).
Participant: A broker, dealer, bank, other financial institution or other Person for whom DTC effects book entry
transfers and pledges of securities deposited with DTC.
Par-Value: As defined in Section 11.01.
Pass-Through Entity: (a) a regulated investment company described in Section 851 of the Code, a real estate
investment trust described in Section 856 of the Code, a common trust fund or an organization described in Section 1381(a) of the
Code, (b) any partnership, trust or estate or (c) any person holding a Class A Certificate as nominee for another person.
Pass-Through Rate: For any interest bearing Class of Certificates (other than Class 6-A-1 Certificates), the per
annum rate set forth or calculated in the manner described in the Preliminary Statement. Interest on the Certificates, other than
the LIBOR Certificates, will be computed on the basis of a 360 day year comprised of twelve 30 day months. Interest on the LIBOR
Certificates and the Class 6-X Certificates (to the extent it is entitled to interest from Loan Group 6) will be computed on the
basis of a 360-day year and the actual number of days elapsed in the related Accrual Period.
Payahead: Any Scheduled Payment intended by the related Mortgagor to be applied in a Collection Period subsequent
to the Collection Period in which such payment was received.
Payoff: Any payment of principal on a Mortgage Loan equal to the entire outstanding Stated Principal Balance of
such Mortgage Loan, if received in advance of the last scheduled Due Date for such Mortgage Loan and accompanied by an amount of
interest equal to accrued unpaid interest on the Mortgage Loan to the date of such payment in full.
Payoff Interest: For any Distribution Date with respect to each SPS Serviced Mortgage Loan for which a Payoff was
received on or after the first calendar day of the month of such Distribution Date and before the 15th calendar day of such month, an
amount of interest thereon at the applicable Net Mortgage Rate from the first day of such month through the day of receipt thereof.
PCAOB: The Public Company Accounting Oversight Board.
Percentage Interest: With respect to any Certificate, either the percentage set forth on the face thereof or equal
to the percentage obtained by dividing the Denomination of such Certificate by the aggregate of the Denominations of all Certificates
of the same Class.
Person: Any individual, corporation, partnership, joint venture, association, joint stock company, trust,
unincorporated organization or government, or any agency or political subdivision thereof.
Physical Certificates: As set forth in the Preliminary Statement.
Pledge Instruments: With respect to each Cooperative Loan, the Stock Power, the Assignment of Proprietary Lease and
the Security Agreement.
Prepayment Interest Shortfall: With respect to any Mortgage Loan, Distribution Date and Principal Prepayment (other
than a Payoff on a Xxxxx Fargo Serviced Mortgage Loan or SPS Serviced Mortgage Loan received during the period from and including the
first day to and including the 14th day of the month of such Distribution Date) received during the related Prepayment Period, the
difference between (i) one full month's interest at the applicable Mortgage Rate (giving effect to any applicable Relief Act
Reduction, Debt Service Reduction and Deficient Valuation), as reduced by the Servicing Fee Rate, if applicable, on the outstanding
principal balance of such Mortgage Loan immediately prior to such prepayment or, if such Principal Prepayment is a Curtailment, the
principal amount of such Curtailment and (ii) the amount of interest actually received with respect to such Mortgage Loan in
connection with such Principal Prepayment, net of the Servicing Fee, if applicable.
Prepayment Period: With respect to each Distribution Date and each Payoff with respect to a Xxxxx Fargo Serviced
Mortgage Loan or SPS Serviced Mortgage Loan, the related "Prepayment Period" will commence on the 15th day of the month preceding the
month in which the related Distribution Date occurs (or, in the case of the first Distribution Date, commencing on the Cut-off Date)
and will end on the 14th day of the month in which such Distribution Date occurs. With respect to each Distribution Date and each
Payoff with respect to any Mortgage Loan serviced by a Designated Servicer, the related "Prepayment Period" will be the period set
forth in the related Designated Servicing Agreement. With respect to each Distribution Date and each Curtailment with respect to any
Mortgage Loan, the related "Prepayment Period" will be the calendar month preceding the month in which such Distribution Date occurs.
Prepayment Premium: With respect to any Mortgage Loan, any fee or premium required to be paid if the Mortgagor
prepays such Mortgage Loan as provided in the related Mortgage Note or Mortgage.
Principal Payment Amount: For any Distribution Date and Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4 or
Loan Group 5, the sum of (i) the principal portion of the Scheduled Payments on the Mortgage Loans in such Loan Group due on the
related Due Date, (ii) the principal portion of repurchase proceeds received with respect to any Mortgage Loan in such Loan
Group which was repurchased as permitted or required by this Agreement during the period beginning on the 15th day of the month
preceding such Distribution Date and ending on the 14th day of the month of such Distribution Date, with notice and receipt of funds
three (3) Business Days prior to the 14th day of the month of such Distribution Date and (iii) any other unscheduled payments of
principal which were received on the Mortgage Loans in such Loan Group during the related calendar month preceding the month of such
Distribution Date, other than Principal Prepayments or Liquidation Principal.
For any Distribution Date and Loan Group 6, an amount equal to the Principal Remittance Amount for such date minus
the Overcollateralization Release Amount, if any, for such date.
Principal Prepayment: Any payment of principal on a Mortgage Loan which constitutes a Payoff or Curtailment.
Principal Prepayment Amount: For any Distribution Date and Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4
or Loan Group 5, the sum of (i) all Principal Prepayments relating to the Mortgage Loans in such Loan Group which were received
during the related Prepayment Period and (ii) all Recoveries received during the calendar month preceding the month of that
Distribution Date.
Principal Remittance Amount: For any Distribution Date and Loan Group 6, an amount equal to the sum of (1) all
principal collected (other than Payaheads) or advanced in respect of Scheduled Payments on the Mortgage Loans in such Loan
Group during the related Collection Period (less unreimbursed Advances, Servicing Advances and other amounts due to the Servicers, the
Trustee, the Master Servicer and the Trust Administrator with respect to the Mortgage Loans in such Loan Group, to the extent
allocable to principal) and the principal portion of Payaheads previously received on the Mortgage Loans in such Loan Group and
intended for application in the related Collection Period, (2) all Principal Prepayments received on the Mortgage Loans in such Loan
Group during the related Prepayment Period, (3) the Purchase Price of each Mortgage Loan in such Loan Group that was repurchased by
the Seller or purchased by the Special Servicer pursuant to Section 3.11(g) or the holder of the Subordinate Certificates pursuant to
Section 3.11(f), during the related Collection Period and the principal proceeds of any purchase of Mortgage Loans in such Loan
Group by the Terminating Entity pursuant to Section 11.01 in an amount not exceeding the principal portion of the Par Value with
respect to such Mortgage Loans, (4) the portion of any Substitution Adjustment Amount paid with respect to any Deleted Mortgage Loans
in such Loan Group during the related Collection Period allocable to principal, (5) all Net Liquidation Proceeds (net of unreimbursed
Advances, Servicing Advances and other expenses, to the extent allocable to principal) and any other Recoveries collected with
respect to the Mortgage Loans in such Loan Group during the preceding calendar month, to the extent allocable to principal, and
(6) amounts, if any, withdrawn from the Group 6 Interest Rate Cap Account to cover Realized Losses on the Group 6 Mortgage Loans
incurred during the related Collection Period.
Principal Transfer Amount: For any Distribution Date and each Undercollateralized Group, the excess, if any, of the
aggregate Class Principal Balance of the Class A Certificates related to such Undercollateralized Group over the Aggregate Loan Group
Balance of such Group.
Private Certificates: As set forth in the Preliminary Statement.
Proprietary Lease: The lease on a Cooperative Unit evidencing the possessory interest of the owner of the
Cooperative Shares in such Cooperative Unit.
Pro Rata Share: With respect to any Distribution Date and any Class of Class C-B Certificates, the portion of the
Subordinate Principal Distribution Amount allocable to such Class, equal to the product of the Subordinate Principal Distribution
Amount on such Distribution Date and a fraction, the numerator of which is the related Class Principal Balance of such Class and the
denominator of which is the aggregate of the Class Principal Balances of the Class C-B Certificates.
Prospectus: The Prospectus, dated December 22, 2005, relating to the offering by the Depositor from time to time of
its Mortgage-Backed Pass-Through Certificates (Issuable in Series) in the form in which it was or will be filed with the Securities
and Exchange Commission pursuant to Rule 424(b) under the 1933 Act with respect to the offer and sale of the Offered Certificates.
Prospectus Supplement: The Prospectus Supplement, dated February 27, 2006, relating to the offering of the Offered
Certificates in the form in which it was or will be filed with the Securities and Exchange Commission pursuant to Rule 424(b) under
the 1933 Act with respect to the offer and sale of the Offered Certificates.
PUD: Planned Unit Development.
Purchase Price: With respect to any Mortgage Loan required to be repurchased by the Seller pursuant to Section 2.02
or 2.03, purchased by a holder of certain Certificates pursuant to Section 3.11(f) or purchased at the option of the Special Servicer
pursuant to Section 3.11(g), the sum of (i) 100% of the Stated Principal Balance of the Mortgage Loan as of the first day of the
month of such purchase, (ii) accrued and unpaid interest on the Mortgage Loan at the applicable Mortgage Rate (reduced by the related
Servicing Fee Rate, if the purchaser is also the Servicer thereof) from the first day of the month of such purchase to the first day
of the month immediately following the month of such purchase, (iii) in the case of a Mortgage Loan purchased by the Seller or the
Depositor, the amount of any unreimbursed Advances and Servicing Advances made by a Servicer, if such Servicer is not the Seller or
the Depositor, with respect to such Mortgage Loan or, in the case of a Mortgage Loan purchased by the Special Servicer, any
unreimbursed Advances and Servicing Advances payable to any Servicer (other than the Servicer or Special Servicer, as the case may
be, which is purchasing such Mortgage Loans) and (iv) with respect to any purchase by the Seller pursuant to Section 2.03, any costs
and damages actually incurred and paid by or on behalf of the Trust in connection with any breach of the representation and warranty
set forth in Schedule III(viii) as a result of a violation of a predatory or abusive lending law applicable to such Mortgage Loan.
With respect to any Mortgage Loan required or allowed to be purchased, the Special Servicer, the Certificateholder, the Seller or the
Depositor, as applicable, shall deliver to the Trustee and the Trust Administrator an Officer's Certificate as to the calculation of
the Purchase Price.
Qualified Insurer: A mortgage guaranty insurance company duly qualified as such under the laws of the state of its
principal place of business and each state having jurisdiction over such insurer in connection with the insurance policy issued by
such insurer, duly authorized and licensed in such states to transact a mortgage guaranty insurance business in such states and to
write the insurance provided by the insurance policy issued by it, approved as a FNMA or FHLMC approved mortgage insurer or having a
claims paying ability rating of at least "AA" or equivalent rating by a nationally recognized statistical rating organization. Any
replacement insurer with respect to a Mortgage Loan must have at least as high a claims paying ability rating as the insurer it
replaces had on the Closing Date.
Qualified Substitute Mortgage Loan: One or more Mortgage Loans substituted by the Seller for one or more Deleted
Mortgage Loans which must, on the date of such substitution, as confirmed in a Request for Release, substantially in the form of
Exhibit K, individually or in the aggregate and on a weighted average basis, as applicable (i) have a Stated Principal Balance, after
deduction of the principal portion of the Scheduled Payment due in the month of substitution, not in excess of, and not more than 10%
less than the Stated Principal Balance of the Deleted Mortgage Loan; (ii) be accruing interest at a rate no lower than and not more
than 1% per annum higher than, that of the Deleted Mortgage Loan; (iii) have a Loan to Value Ratio no higher than that of the Deleted
Mortgage Loan; (iv) have a remaining term to maturity not more than one year greater than or less than that of the Deleted Mortgage
Loan; provided that the remaining term to maturity of any such Mortgage Loan shall be no greater than the last maturing Mortgage Loan
immediately prior to any substitution; (v) have a Maximum Mortgage Rate and Minimum Mortgage Rate not less than the respective such
rates for the Deleted Mortgage Loan, have a Gross Margin equal to or greater than the Deleted Mortgage Loan and have the same Index
as the Deleted Mortgage Loan; (vi) not be a Cooperative Loan unless the Deleted Mortgage Loan was a Cooperative Loan and (vii)
comply with each representation and warranty set forth in Section 2.03(b).
Rating Agency: Each of Xxxxx'x and S&P or any successor to any of them, so long as such entity is rating any of the
Certificates.
Ratings: As of any date of determination, the ratings, if any, of the Certificates as assigned by the Rating
Agencies.
Realized Loss: With respect to any Mortgage Loan, (1) with respect to each Liquidated Mortgage Loan, an amount (not
less than zero or more than the Stated Principal Balance of the Mortgage Loan) as of the date of such liquidation, equal to (i) the
Stated Principal Balance of the Liquidated Mortgage Loan as of the date of such liquidation, plus (ii) interest at the applicable Net
Mortgage Rate from the related Due Date as to which interest was last paid or advanced (and not reimbursed) to Certificateholders up
to the related Due Date in the month in which Liquidation Proceeds are required to be distributed on the Stated Principal Balance of
such Liquidated Mortgage Loan from time to time, minus (iii) the Net Liquidation Proceeds, if any, received during the month in which
such liquidation occurred, to the extent applied as recoveries of interest at the Net Mortgage Rate and to principal of the
Liquidated Mortgage Loan; (2) for any Mortgage Loan subject to a Deficient Valuation, the excess of the Stated Principal Balance of
that Mortgage Loan over the principal amount as reduced in connection with the proceedings resulting in the Deficient Valuation; or
(3) for any Debt Service Reduction Mortgage Loan, the present value of all monthly Debt Service Reductions on the Mortgage Loan,
assuming that the mortgagor pays each Scheduled Payment on the applicable Due Date and that no Principal Prepayments are received on
the Mortgage Loan, discounted at the applicable Mortgage Rate.
Realized Losses allocated to the Class 6-X Certificates shall be allocated first to REMIC III Regular Interest
6-X-IO in reduction of the accrued but unpaid interest thereon until such accrued and unpaid interest shall have been reduced to zero
and then to REMIC III Regular Interest 6-X-PO in reduction of the principal balance thereof.
Recognition Agreement: An Agreement among a Cooperative Corporation, a lender and a Mortgagor with respect to a
Cooperative Loan whereby such parties (i) acknowledge that such lender may make, or intends to make, such Cooperative Loan, (ii) make
certain agreements with respect to such Cooperative Loan.
Record Date: With respect to any Distribution Date and the Certificates other than the LIBOR Certificates held in
Book-Entry Form on such Distribution Date, the close of business on the last Business Day of the month preceding the month in which
the applicable Distribution Date occurs. With respect to any Distribution Date and the LIBOR Certificates held in Book-Entry Form on
such Distribution Date, the close of business on the Business Day immediately preceding such Distribution Date.
Recovery: With respect to any Distribution Date and Mortgage Loan that became a Liquidated Mortgage Loan in a month
preceding the month prior to the Distribution Date, an amount received in respect of principal on such Mortgage Loan which has
previously been allocated as a Realized Loss or Applied Loss Amount to a Class or Classes of Certificates, net of reimbursable
expenses.
Reference Bank Rate: With respect to any Accrual Period relating to the LIBOR Certificates as follows: the
arithmetic mean (rounded upwards, if necessary, to the nearest one sixteenth of a percent) of the offered rates for United States
dollar deposits for one month which are offered by the Reference Banks as of 11:00 A.M., London time, on the Interest Determination
Date prior to the first day of such Accrual Period to prime banks in the London interbank market for a period of one month in amounts
approximately equal to the aggregate Class Principal Balance of the LIBOR Certificates; provided that at least two such Reference
Banks provide such rate. If fewer than two offered rates appear, the Reference Bank Rate will be the arithmetic mean of the rates
quoted by one or more major banks in New York City, selected by the Trust Administrator after consultation with DLJMC, as of 11:00
A.M., New York City time, on such date for loans in U.S. Dollars to leading European banks for a period of one month in amounts
approximately equal to the aggregate Class Principal Balance of the LIBOR Certificates. If no such quotations can be obtained, the
Reference Bank Rate shall be the Reference Bank Rate applicable to the preceding Accrual Period.
Reference Banks: Three major banks that are engaged in the London interbank market, selected by the Trust
Administrator after consultation with DLJMC.
Registration Statement: That certain registration statement on Form S-3, as amended (Registration No. 333-127872),
relating to the offering by the Depositor from time to time of its Mortgage-Backed Pass-Through Certificates (Issuable in Series) as
heretofore declared effective by the Securities and Exchange Commission.
Regular Certificates: All of the Certificates other than the Class AR and Class AR-L Certificates.
Regulation AB: Means 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 Red. Reg. 1,506, 1,531 (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 R
attached hereto. For clarification purposes, multiple parties can have responsibility for the same Relevant Servicing Criteria.
With respect to a Servicing Function Participant engaged by the Master Servicer, each Servicer, the Trust Administrator, the Trustee
or each Servicer, the term "Relevant Servicing Criteria" may refer to a portion of the Relevant Servicing Criteria applicable to such
parties
Relief Act: The Servicemembers Civil Relief Act, as amended, and any similar state or local law.
Relief Act Reductions: With respect to any Distribution Date and any Mortgage Loan as to which there has been a
reduction in the amount of interest collectible thereon for the most recently ended calendar month as a result of the application of
the Relief Act, the amount, if any, by which (i) interest collectible on such Mortgage Loan for the most recently ended calendar
month is less than (ii) interest accrued thereon for such month pursuant to the Mortgage Note.
REMIC: A "real estate mortgage investment conduit," within the meaning of Section 860D of the Code. Reference
herein to REMIC refers to each REMIC created by the Preliminary Statement.
REMIC Election: An election, for federal income tax purposes, to treat certain assets as a REMIC.
REMIC I Available Distribution Amount: For each of Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4 and Loan
Group 5, for any Distribution Date, the Available Distribution Amount for such Loan Group.
REMIC I Distribution Amount: For any Distribution Date, the REMIC I Available Distribution Amounts shall be deemed
distributed to REMIC III, as the holder of the REMIC I Regular Interests, and to Holders of the Class AR-L Certificates in respect of
Component I thereof, pursuant to Section 4.01(IV)(a)(i), in the following amounts and priority:
(a) To the extent of the REMIC I Available Distribution Amount for Loan Group 1:
(i) first, to Class Y-1 and Class Z-1 Regular Interests and Component I of the Class AR-L
Certificates, concurrently, the Uncertificated Accrued Interest or accrued interest, as applicable, for such Classes
remaining unpaid from previous Distribution Dates, pro rata according to their respective shares of such unpaid amounts;
(ii) second, to the Class Y-1 and Class Z-1 Regular Interests and Component I of the Class AR-L
Certificates, concurrently, the Uncertificated Accrued Interest or accrued interest, as applicable, for such Classes for the
current Distribution Date, pro rata according to their respective Uncertificated Accrued Interest;
(iii) third, to Component I of the Class AR-L Certificates, until the Certificate Balance thereof has
been reduced to zero; and
(iv) fourth, to the Class Y-1 and Class Z-1 Regular Interests, the Class Y-1 Principal Distribution
Amount and the Class Z-1 Principal Distribution Amount, respectively.
(b) To the extent of the REMIC I Available Distribution Amount for Loan Group 2:
(i) first, to the Class Y-2 and Class Z-2 Regular Interests, concurrently, the Uncertificated Accrued
Interest for such Classes remaining unpaid from previous Distribution Dates, pro rata according to their respective shares
of such unpaid amounts;
(ii) second, to the Class Y-2 and Class Z-2 Regular Interests, concurrently, the Uncertificated Accrued
Interest for such Classes for the current Distribution Date, pro rata according to their respective Uncertificated Accrued
Interest; and
(iii) third, to the Class Y-2 and Class Z-2 Regular Interests, the Class Y-2 Principal Distribution
Amount and the Class Z-2 Principal Distribution Amount, respectively.
(c) To the extent of the REMIC I Available Distribution Amount for Loan Group 3:
(i) first, to the Class Y-3 and Class Z-3 Regular Interests, concurrently, the Uncertificated Accrued
Interest for such Classes remaining unpaid from previous Distribution Dates, pro rata according to their respective shares
of such unpaid amounts;
(ii) second, to the Class Y-3 and Class Z-3 Regular Interests, concurrently, the Uncertificated Accrued
Interest for such Classes for the current Distribution Date, pro rata according to their respective Uncertificated Accrued
Interest; and
(iii) third, to the Class Y-3 and Class Z-3 Regular Interests, the Class Y-3 Principal Distribution
Amount and the Class Z-3 Principal Distribution Amount, respectively.
(d) To the extent of the REMIC I Available Distribution Amount for Loan Group 4:
(i) first, to the Class Y-4 and Class Z-4 Regular Interests, concurrently, the Uncertificated Accrued
Interest for such Classes remaining unpaid from previous Distribution Dates, pro rata according to their respective shares
of such unpaid amounts;
(ii) second, to the Class Y-4 and Class Z-4 Regular Interests, concurrently, the Uncertificated Accrued
Interest for such Classes for the current Distribution Date, pro rata according to their respective Uncertificated Accrued
Interest; and
(iii) third, to the Class Y-4 and Class Z-4 Regular Interests, the Class Y-4 Principal Distribution
Amount and the Class Z-4 Principal Distribution Amount, respectively.
(e) To the extent of the REMIC I Available Distribution Amount for Loan Group 5:
(i) first, to the Class Y-5 and Class Z-5 Regular Interests, concurrently, the Uncertificated Accrued
Interest for such Classes remaining unpaid from previous Distribution Dates, pro rata according to their respective shares
of such unpaid amounts;
(ii) second, to the Class Y-5 and Class Z-5 Regular Interests, concurrently, the Uncertificated Accrued
Interest for such Classes for the current Distribution Date, pro rata according to their respective Uncertificated Accrued
Interest; and
(iii) third, to the Class Y-5 and Class Z-5 Regular Interests, the Class Y-5 Principal Distribution
Amount and the Class Z-5 Principal Distribution Amount, respectively.
(f) To the extent of the REMIC I Available Distribution Amounts for such Distribution Date remaining after
payment of the amounts pursuant to paragraphs (a) through (e) of this definition of "REMIC I Distribution Amount":
(i) first, to each Class of REMIC I Class Y and Class Z Regular Interests, pro rata according to the
amount of unreimbursed Realized Losses allocable to principal previously allocated to each such Class; provided, however,
that any amounts distributed pursuant to this paragraph (f)(i) of this definition of "REMIC I Distribution Amount" shall not
cause a reduction in the Uncertificated Principal Balances of any of the Class Y and Class Z Regular Interests; and
(ii) second, to the Class AR-L Certificates in respect of Component I thereof, any remaining amount.
REMIC I Realized Losses: Realized Losses on the Group 1, Group 2, Group 3, Group 4 and Group 5 Mortgage Loans shall
be allocated to the REMIC I Regular Interests as follows: (1) the interest portion of Realized Losses and Net Interest Shortfalls on
the Group 1 Loans, if any, shall be allocated between the Class Y-1 and Class Z-1 Regular Interests pro rata according to the amount
of interest accrued but unpaid thereon, in reduction thereof; (2) the interest portion of Realized Losses and Net Interest Shortfalls
on the Group 2 Loans, if any, shall be allocated between the Class Y-2 and Class Z-2 Regular Interests pro rata according to the
amount of interest accrued but unpaid thereon, in reduction thereof; (3) the interest portion of Realized Losses and Net Interest
Shortfalls on the Group 3 Loans, if any, shall be allocated between the Class Y-3 and Class Z-3 Regular Interests pro rata according
to the amount of interest accrued but unpaid thereon, in reduction thereof; (4) the interest portion of Realized Losses and Net
Interest Shortfalls on the Group 4 Loans, if any, shall be allocated between the Class Y-4 and Class Z-4 Regular Interests pro rata
according to the amount of interest accrued but unpaid thereon, in reduction thereof; and (4) the interest portion of Realized Losses
and Net Interest Shortfalls on the Group 5 Loans, if any, shall be allocated between the Class Y-5 and Class Z-5 Regular Interests
pro rata according to the amount of interest accrued but unpaid thereon, in reduction thereof. Any interest portion of such Realized
Losses in excess of the amount allocated pursuant to the preceding sentence shall be treated as a principal portion of Realized
Losses not attributable to any specific Mortgage Loan in such Group and allocated pursuant to the succeeding sentences. The
principal portion of Realized Losses with respect to the Group 1, Group 2, Group 3, Group 4 and Group 5 Mortgage Loans shall be
allocated to the REMIC I Regular Interests as follows: (1) the principal portion of Realized Losses on the Group 1 Loans shall be
allocated, first, to the Class Y-1 Regular Interest to the extent of the Class Y-1 Principal Reduction Amount in reduction of the
Uncertificated Principal Balance of such Regular Interest and, second, the remainder, if any, of such principal portion of such
Realized Losses shall be allocated to the Class Z-1 Regular Interest in reduction of the Uncertificated Principal Balance thereof;
(2) the principal portion of Realized Losses on the Group 2 Loans shall be allocated, first, to the Class Y-2 Regular Interest to the
extent of the Class Y-2 Principal Reduction Amount in reduction of the Uncertificated Principal Balance of such Regular Interest and,
second, the remainder, if any, of such principal portion of such Realized Losses shall be allocated to the Class Z-2 Regular Interest
in reduction of the Uncertificated Principal Balance thereof; (3) the principal portion of Realized Losses on the Group 3 Loans shall
be allocated, first, to the Class Y-3 Regular Interest to the extent of the Class Y-3 Principal Reduction Amount in reduction of the
Uncertificated Principal Balance of such Regular Interest and, second, the remainder, if any, of such principal portion of such
Realized Losses shall be allocated to the Class Z-3 Regular Interest in reduction of the Uncertificated Principal Balance thereof;
(4) the principal portion of Realized Losses on the Group 4 Loans shall be allocated, first, to the Class Y-4 Regular Interest to the
extent of the Class Y-4 Principal Reduction Amount in reduction of the Uncertificated Principal Balance of such Regular Interest and,
second, the remainder, if any, of such principal portion of such Realized Losses shall be allocated to the Class Z-4 Regular Interest
in reduction of the Uncertificated Principal Balance thereof; and (5) the principal portion of Realized Losses on the Group 5 Loans
shall be allocated, first, to the Class Y-5 Regular Interest to the extent of the Class Y-5 Principal Reduction Amount in reduction
of the Uncertificated Principal Balance of such Regular Interest and, second, the remainder, if any, of such principal portion of
such Realized Losses shall be allocated to the Class Z-5 Regular Interest in reduction of the Uncertificated Principal Balance
thereof. For any Distribution Date, reductions in the Uncertificated Principal Balances of the Class Y and Class Z Regular Interests
pursuant to this definition of Realized Loss shall be determined, and shall be deemed to occur, prior to any reductions of such
Uncertificated Principal Balances by distributions on such Distribution Date.
REMIC II Available Distribution Amount: The sum of the Interest Remittance Amount and the Principal Remittance
Amount.
REMIC II Distribution Amount: For any Distribution Date, the REMIC II Available Distribution Amount shall be deemed
distributed to REMIC III, as the holder of the REMIC II Regular Interests, and to Holders of the Class AR-L Certificates in respect
of Component II thereof, pursuant to Section 4.01(IV)(a)(ii), in the following amounts and priority:
(a) first, to the REMIC II Regular Interests, pro rata, in an amount equal to (A) their Uncertificated Accrued
Interest for such Distribution Date, plus (B) any amounts in respect thereof remaining unpaid from previous Distribution Dates;
(b) second:
(i) to REMIC II Regular Interests LT2, LT3 and LT4, their respective Principal Distribution Amounts;
(ii) to REMIC II Regular Interest LT1 its Principal Distribution Amount;
(iii) any remainder to REMIC II Regular Interest LT1, until the Uncertificated Principal Balance thereof
has been reduced to zero;
(iv) any remainder to REMIC II Regular Interests LT2, LT3 and LT4, pro rata, according to their
respective Uncertificated Principal Balances as reduced by the distributions made pursuant to (i) above, until their
respective Uncertificated Principal Balances have been reduced to zero;
(c) third, to the extent of the REMIC II Available Distribution Amount for such Distribution Date remaining after
payment of the amounts pursuant to paragraphs (a) and (b) of this definition of "REMIC II Distribution Amount" as follows:
(i) first, to the REMIC II Regular Interests, pro rata, to the extent of any Realized Losses allocated
to such REMIC II Regular Interests on such Distribution Date or any prior Distribution Date and not previously reimbursed
pursuant to this paragraph; provided, however, that any amounts distributed pursuant to this paragraph (c)(i) of this
definition of "REMIC II Distribution Amount" shall not cause a reduction in the Uncertificated Principal Balance of any of
the REMIC II Regular Interests; and
(ii) second, to the Class AR-L Certificates in respect of Component II thereof, any remaining amount.
REMIC II Principal Reduction Amounts: For any Distribution Date, the amounts by which the Uncertificated Principal
Balances of the REMIC II Regular Interests will be reduced on such Distribution Date by the allocation of Realized Losses and the
distribution of principal, determined as follows:
For purposes of the succeeding formulas the following symbols shall have the meanings set forth below:
Y1 = the Uncertificated Principal Balance of REMIC II Regular Interest LT1 after distributions on the prior Distribution
Date.
Y2 = the Uncertificated Principal Balance of REMIC II Regular Interest LT2 after distributions on the prior Distribution
Date.
Y3 = the Uncertificated Principal Balance of REMIC II Regular Interest LT3 after distributions on the prior Distribution
Date.
Y4 = the Uncertificated Principal Balance of REMIC II Regular Interest LT4 after distributions on the prior Distribution
Date (note: Y3 = Y4).
ΔY1 = the REMIC II Regular Interest LT1 Principal Reduction Amount.
ΔY2 = the REMIC II Regular Interest LT2 Principal Reduction Amount.
ΔY3 = the REMIC II Regular Interest LT3 Principal Reduction Amount.
ΔY4 = the REMIC II Regular Interest LT4 Principal Reduction Amount.
P0 = the aggregate Uncertificated Principal Balance of the REMIC II Regular Interests after distributions and the
allocation of Realized Losses on the prior Distribution Date.
P1 = the aggregate Uncertificated Principal Balance of the REMIC II Regular Interests after distributions and the
allocation of Realized Losses to be made on such Distribution Date.
ΔP = P0 - P1 = the aggregate of the REMIC II Regular Interests LT1, LT2, LT3 and LT4 Principal Reduction Amounts.
= the aggregate of the principal portions of Realized Losses to be allocated to, and the principal distributions to be
made on, the Group 6 Certificates on such Distribution Date (including distributions of accrued and unpaid interest on the Class 6-X
Certificates for prior Distribution Dates).
R0 = the Net Funds Cap (stated as a monthly rate) after giving effect to amounts distributed and Realized Losses
allocated on the prior Distribution Date.
R1 = the Net Funds Cap (stated as a monthly rate) after giving effect to amounts to be distributed and Realized Losses to
be allocated on such Distribution Date.
α = (Y2 + Y3)/P0. The initial value of a on the Closing Date for use on the first Distribution Date shall be 0.0001.
γ0 = the lesser of (A) the sum for all Classes of LIBOR Certificates of the product for each Class of (i) the lesser of
(x) the monthly interest rate for such Class and (y) the Net Funds Cap applicable for distributions to be made on such Distribution
Date and (ii) the aggregate Certificate Principal Balance for such Class after distributions and the allocation of Realized Losses on
the prior Distribution Date and (B) R0*P0.
γ1 = the lesser of (A) the sum for all Classes of LIBOR Certificates of the product for each Class of (i) the lesser of
(x) the monthly interest rate for such Class and (y) the Net Funds Cap applicable for distributions to be made on the next succeeding
Distribution Date and (ii) the aggregate Certificate Principal Balance for such Class after distributions and the allocation of
Realized Losses to be made on such Distribution Date and (B) R1*P1.
Then, based on the foregoing definitions:
ΔY1 = ΔP - ΔY2 - ΔY3 - ΔY4;
ΔY2 = (α/2){( γ0R1 - γ1R0)/R0R1};
ΔY3 = αΔP - ΔY2; and
ΔY4 = ΔY3.
if both ΔY2 and ΔY3, as so determined, are non-negative numbers. Otherwise:
(1) If ΔY2, as so determined, is negative, then
ΔY2 = 0;
ΔY3 = α{γ1R0P0 - γ0R1P1}/{γ1R0};
ΔY4 = ΔY3; and
ΔY1 = ΔP - ΔY2 - ΔY3 - ΔY4.
(2) If ΔY3, as so determined, is negative, then
ΔY3 = 0;
ΔY2 = α{γ1R0P0 - γ0R1P1}/{2R1R0P1 - γ1R0};
ΔY4 = ΔY3; and
ΔY1 = ΔP - ΔY2 - ΔY3 - ΔY4.
The Principal Reduction Amount ΔY1 shall be allocated to REMIC II Regular Interest LT1.
REMIC II Realized Losses: Realized Losses on the Group 6 Mortgage Loans for the related Collection Period shall be
allocated to REMIC II Regular Interests LT1, LT2, LT3 and LT4, in reduction of the Uncertificated Principal Balances thereof and
interest accrued thereon, as follows: (i) the interest portion of Realized Losses, if any, shall be allocated pro rata to accrued
interest on REMIC II Regular Interests LT1, LT2, LT3 and LT4, to the extent of such accrued interest, and (ii) any remaining interest
portions of Realized Losses and any principal portions of Realized Losses shall be treated as principal portions of Realized Losses
and allocated (i) to REMIC II Regular Interest LT2, REMIC II Regular Interest LT3 and REMIC II Regular Interest LT4, pro rata
according to their respective Principal Reduction Amounts, provided that such allocation to each of REMIC II Regular Interest LT2,
REMIC II Regular Interest LT3 and REMIC II Regular Interest LT4 shall not exceed their respective Principal Reduction Amounts, and
(ii) any Realized Losses not allocated to any of REMIC II Regular Interest LT2, REMIC II Regular Interest LT3 and REMIC II Regular
Interest LT4 pursuant to the provisos of clause (i) above shall be allocated to REMIC II Regular Interest LT1, until the
Uncertificated Principal Balance thereof shall have been reduced to zero. Any Realized Losses on the Group 6 Mortgage Loans
remaining after the allocations made in the preceding sentences shall be allocated among REMIC II Regular Interests LT2, LT3 and LT4
pro-rata according to their respective Uncertificated Principal Balances as reduced by the allocations in the preceding sentence
until such Uncertificated Principal Balances shall have been reduced to zero.
REMIC II Regular Interest LT1 Principal Distribution Amount: For any Distribution Date, the excess, if any, of the
REMIC II Regular Interest LT1 Principal Reduction Amount for such Distribution Date over the Realized Losses allocated to REMIC II
Regular Interest LT1 on such Distribution Date.
REMIC II Regular Interest LT2 Principal Distribution Amount: For any Distribution Date, the excess, if any, of the
REMIC II Regular Interest LT2 Principal Reduction Amount for such Distribution Date over the Realized Losses allocated to REMIC II
Regular Interest LT2 on such Distribution Date.
REMIC II Regular Interest LT3 Principal Distribution Amount: For any Distribution Date, the excess, if any, of the
REMIC II Regular Interest LT3 Principal Reduction Amount for such Distribution Date over the Realized Losses allocated to REMIC II
Regular Interest LT3 on such Distribution Date.
REMIC II Regular Interest LT4 Principal Distribution Amount: For any Distribution Date, the excess, if any, of the
REMIC II Regular Interest LT4 Principal Reduction Amount for such Distribution Date over the Realized Losses allocated to REMIC II
Regular Interest LT4 on such Distribution Date.
REMIC Provisions: The provisions of the federal income tax law relating to REMICs, which appear at Sections 860A
through 860G of the Code, and related provisions and regulations promulgated thereunder, as the foregoing may be in effect from time
to time.
REMIC Regular Interest: Any of the REMIC I Regular Interests, REMIC II Regular Interests and REMIC III Regular
Interests.
REO Disposition: The final sale by Xxxxx Fargo, in its capacity as Servicer, of any REO Property.
REO Disposition Fee: With respect to each REO Disposition, the greater of (i) $1,200 or (ii) one percent (1%) of
the final sales price of such REO Disposition; provided that the real estate broker commission with respect to the liquidation of the
REO property is equal to or less than 5% except in such cases where the property value is less than $100,000 or the property is
located in a rural area and market conditions require the Servicer to pay a real estate broker commission greater than 5% or prior
written consent has been obtained from CSFB or their authorized representative.
REO Property: A Mortgaged Property acquired by the Trust Fund through foreclosure or deed-in-lieu of foreclosure in
connection with a defaulted Mortgage Loan.
Required Insurance Policy: With respect to any Non-Designated Mortgage Loan, any insurance policy that is required
to be maintained from time to time under this Agreement in respect of such Mortgage Loan or the related Mortgaged Property.
Residual Certificates: The Class AR Certificates and Class AR-L Certificates.
Responsible Officer: When used with respect to the Trust Administrator, shall mean any officer within the corporate
trust department of the Trust Administrator, including any Assistant Vice President, the Secretary, any Vice President, Assistant
Secretary, the Treasurer, any Assistant Treasurer, any Trust Officer or any other officer of the Trust Administrator customarily
performing functions similar to those performed by any of the above designated officers and any officer within the Corporate Trust
Department having direct responsibility for the administration of this Agreement. When used with respect to the Trustee, shall mean
any officer within the Corporate Trust Department having direct responsibility for the administration of this Agreement and also,
with respect to a particular matter, any other officer to whom such matter is referred because of such officer's knowledge of and
familiarity with the particular subject.
Rolling Three Month Delinquency Rate: For any Distribution Date will be the fraction, expressed as a percentage,
equal to the average of the Delinquency Rates for each of the three (or one and two, in the case of the first and second Distribution
Dates) immediately preceding months.
Rule 144A: Rule 144A under the 1933 Act, as in effect from time to time.
S&P: Standard & Poor's Ratings Services, a division of The XxXxxx-Xxxx Companies, Inc., or any successor thereto.
Scheduled Payment: The scheduled monthly payment on a Mortgage Loan due on any Due Date allocable to principal
and/or interest on such Mortgage Loan pursuant to the terms of the related Mortgage Note.
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: As defined in Section 13.09.
Securities Act: means the Securities Act of 1933, as amended, and the rules and regulations thereunder.
Security Agreement: With respect to a Cooperative Loan, the agreement or mortgage creating a security interest in
favor of the originator of the Cooperative Loan in the related Cooperative Shares.
Seller: DLJMC.
Senior Certificates: As set forth in the Preliminary Statement.
Senior Liquidation Amount: The Group 1 Senior Liquidation Amount, the Group 2 Senior Liquidation Amount, the
Group 3 Senior Liquidation Amount, the Group 4 Senior Liquidation Amount or Group 5 Senior Liquidation Amount, as applicable.
Senior Percentage: The Group 1 Senior Percentage, Group 2 Senior Percentage, Group 3 Senior Percentage, Group 4
Senior Percentage or Group 5 Senior Percentage, as applicable.
Senior Prepayment Percentage: The Senior Prepayment Percentage for any Distribution Date occurring during the seven
years beginning on the first Distribution Date for each of Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4 and Loan Group 5
will equal 100%. The Senior Prepayment Percentage for any Distribution Date occurring on or after the seventh anniversary of the
first Distribution Date for each such Loan Group will be as follows: for any Distribution Date in the first year thereafter, the
related Senior Percentage plus 70% of the related Subordinate Percentage for such Distribution Date; for any Distribution Date in the
second year thereafter, the related Senior Percentage plus 60% of the related Subordinate Percentage for such Distribution Date; for
any Distribution Date in the third year thereafter, the related Senior Percentage plus 40% of the related Subordinate Percentage for
such Distribution Date; for any Distribution Date in the fourth year thereafter, the related Senior Percentage plus 20% of the
related Subordinate Percentage for such Distribution Date; and for any Distribution Date after the fourth year thereafter, the
related Senior Percentage for such Distribution Date.
Notwithstanding the foregoing, on any Distribution Date and with respect to Loan Group 1, Loan Group 2, Loan
Group 3, Loan Group 4 or Loan Group 5 if the Senior Percentage exceeds the initial related Senior Percentage, the Senior Prepayment
Percentage for each Group for that Distribution Date will equal 100%, (ii) if on or before the Distribution Date in February 2009,
the Class C-B Percentage is greater than or equal to twice the Class C-B Percentage as of the Closing Date, in which case the Senior
Prepayment Percentage for each Group will equal the related Senior Percentage, plus 50% of the related Subordinate Percentage for
that Distribution Date, and if after the Distribution Date in February 2009, the Class C-B Percentage is greater than or equal to
twice the Class C-B Percentage as of the Closing Date, then the Senior Prepayment Percentage for each such Group for such
Distribution Date will equal the related Senior Percentage).
Notwithstanding the foregoing, the Senior Prepayment Percentage for any of Loan Group 1, Loan Group 2, Loan Group 3,
Loan Group 4 or Loan Group 5 shall equal 100% for any Distribution Date as to which (i) the outstanding principal balance of the
Mortgage Loans in the related Loan Group, delinquent 60 days or more (including all REO Properties and Mortgage Loans in foreclosure)
(averaged over the preceding six month period), as a percentage of the related aggregate Subordinate Component Balance as of such
Distribution Date is equal to or greater than 50% or (ii) cumulative Realized Losses for the Mortgage Loans in the related Loan
Group exceed (a) with respect to any Distribution Date prior to the third anniversary of the first Distribution Date, 20% of the
related aggregate Subordinate Component Balance as of the Closing Date (the "Original Subordinate Principal Balance"), (b) with
respect to any Distribution Date on or after the third anniversary but prior to the eighth anniversary of the first Distribution
Date, 30% of the related Original Subordinate Principal Balance, (c) with respect to any Distribution Date on or after the eighth
anniversary but prior to the ninth anniversary of the first Distribution Date, 35% of the related Original Subordinate Principal
Balance, (d) with respect to any Distribution Date on or after the ninth anniversary but prior to the tenth anniversary of the first
Distribution Date, 40% of the related Original Subordinate Principal Balance, (e) with respect to any Distribution Date on or after
the tenth anniversary but prior to the eleventh anniversary of the first Distribution Date, 45% of the related Original Subordinate
Principal Balance and (f) with respect to any Distribution Date on or after the eleventh anniversary of the first Distribution Date,
50% of the Original Subordinate Principal Balance.
If the Senior Prepayment Percentage for one Loan Group equals 100% due to the limitations set forth above, then the
Senior Prepayment Percentage for the other Loan Groups will equal 100%.
If on any Distribution Date the allocation to a Class of Senior Certificates then entitled to distributions of
Principal Prepayments and other amounts in the percentage required above would reduce the outstanding Class Principal Balance of that
Class below zero, the distribution to that Class of Senior Certificates of the Senior Prepayment Percentage of those amounts for such
Distribution Date shall be limited to the percentage necessary to reduce the related Class Principal Balance to zero.
Senior Principal Distribution Amount: The Group 1 Senior Principal Distribution Amount, Group 2 Senior Principal
Distribution Amount, Group 3 Senior Principal Distribution Amount, Group 4 Senior Principal Distribution Amount or Group 5 Senior
Principal Distribution Amount, as applicable.
Servicer Employee: As defined in Section 3.16.
Service(s)(ing): In accordance with Regulation AB, the act of servicing and administering the Mortgage Loans or any
other assets of the Trust by an entity that meets the definition of "servicer' set forth in Item 1101 of Regulation AB and is subject
to the disclosure requirements set forth in 1108 of Regulation AB. For clarification purposes, any uncapitalized occurrence of this
term shall have the meaning commonly understood by participants in the residential mortgage-backed securitization market.
Servicer Mortgage File: All documents pertaining to a Mortgage Loan not required to be included in the Trustee
Mortgage File and held by the Master Servicer or the related Servicer or any Sub-Servicer.
Servicers: SPS, Xxxxx Fargo and the Special Servicer to the extent it has taken over the servicing of one or more
Mortgage Loans pursuant to Section 3.17 and, in each case, any successor in interest thereto or any successor servicer appointed as
provided herein.
Servicing Advance: With respect to the Non-Designated Mortgage Loans, all customary, reasonable and necessary "out
of pocket" costs and expenses incurred prior to, on or after the Cut-off Date in the performance by a Servicer of its servicing
obligations related to such Mortgage Loans, including, but not limited to, the cost (including reasonable attorneys' fees and
disbursements) of (i) the preservation, restoration and protection of a Mortgaged Property, (ii) compliance with the obligations
under Section 3.11 and any enforcement or judicial proceedings, including foreclosures, (iii) the management and liquidation of any
REO Property (including default management and similar services, appraisal services and real estate broker services), (iv) any
expenses incurred by a Servicer in connection with obtaining an environmental inspection or review pursuant to the second paragraph
of Section 3.11(a), (v) compliance with the obligations under Section 3.09, (vi) locating any documents missing from the Trustee's
Mortgage File and (vii) obtaining broker price opinions. In no event will any Servicer be required to make any Servicing Advance
which would constitute a Nonrecoverable Advance.
With respect to the Designated Mortgage Loans, Servicing Advance shall have the meaning assigned to such term in the
related Designated Servicing Agreement.
Servicing Criteria: The "servicing criteria" set forth in Item 1122(d) of Regulation AB, as such may be amended
from time to time.
Servicing Fee: As to each Mortgage Loan and any Distribution Date, an amount equal to one month's interest at the
Servicing Fee Rate on the Stated Principal Balance of such Mortgage Loan as of the Due Date in the month of such Distribution Date
(prior to giving effect to any Scheduled Payments due on such Mortgage Loan on such Due Date), subject to reduction as provided in
Section 3.14.
Servicing Fee Rate: As to each Mortgage Loan, the per annum rate set forth on the Mortgage Loan Schedule.
Servicing Function Participant: Any Sub-Servicer, Subcontractor or any other Person, other than each Servicer, the
Master Servicer, the Trustee and the Trust Administrator, that is performing activities addressed by the Servicing Criteria, unless
such Person's activities relate only to 5% or less of the Mortgage Loans (measured by aggregate Stated Principal Balance of the
Mortgage Loans, annually at the commencement of the calendar year prior to the year in which an Assessment of Compliance is required
to be delivered, multiplied by a fraction, the numerator of which is the number of months during which such Servicing Function
Participant Services the related Mortgage Loans and the denominator of which is 12, or, in the case of the year in which the Closing
Date occurs, the number of months elapsed from the Cut-Off Date to the end of such calendar year).
Servicing Officer: Any officer of a Servicer involved in, or responsible for, the administration and servicing of
the related Mortgage Loans whose name and specimen signature appear on a list of servicing officers furnished to the Trustee and the
Trust Administrator by a Servicer on the Closing Date pursuant to this Agreement, as such list may from time to time be amended and
delivered to the Trustee and Trust Administrator.
Special Hazard Loss: A Realized Loss (or portion thereof) with respect to a Mortgage Loan arising from any direct
physical loss or damage to a Mortgaged Property (including any Realized Loss due to the presence or suspected presence of hazardous
wastes or substances on mortgaged property) which is not covered by a standard hazard maintenance policy with extended coverage or by
a flood insurance policy, if applicable (or which would not have been covered by such a policy had such a policy been maintained),
which is caused by or results from any cause except: (i) wear and tear, deterioration, rust or corrosion, mold, wet or dry rot,
inherent vice or latent defect, animals, birds, vermin, insects; (ii) settling, subsidence, cracking, shrinkage, bulging or expansion
of pavements, foundations, walls, floors, roofs or ceilings; (iii) errors in design, faulty workmanship or faulty materials, unless
the collapse of the property or part thereof ensues and then only for the ensuing loss; (iv) nuclear or chemical reaction or nuclear
radiation or radioactive or chemical contamination, all whether controlled or uncontrolled, and whether such loss be direct or
indirect, proximate or remote; (v) hostile or warlike action in time of peace or war, including action in hindering, combating or
defending against an actual, impending or expected attack (a) by any government of sovereign power, de jure or de facto, or by any
authority maintaining or using military, naval or air forces, (b) by military, naval or air forces, or (c) by an agent of any such
government, power, authority or forces; (vi) any weapon of war employing atomic fission or radioactive force whether in time of peace
or war; or (vii) insurrection, rebellion, revolution, civil war, usurped power or action taken by governmental authority in
hindering, combating or defending against such occurrence, seizure or destruction under quarantine or customs regulations,
confiscation by order of any government or public authority, or risks of contraband or illegal transportation or trade.
Special Hazard Loss Coverage Amount: With respect to the Class C-B Certificates, as of the Closing Date,
$13,581,770.51 subject in each case to reduction from time to time, to be an amount equal on any Distribution Date to the lesser of
(a) the greatest of (i) 1% of the Aggregate Groups 1-5 Collateral Balance, (ii) twice the principal balance of the largest Mortgage
Loan in Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4 and Loan Group 5 and (iii) the aggregate Stated Principal Balances of
the Group 1, Group 2, Group 3, Group 4 or Group 5 Mortgage Loans secured by Mortgaged Properties located in the single California
postal zip code area having the highest aggregate principal balance of any such zip code area and (b) the Special Hazard Loss
Coverage Amount as of the Closing Date less the amount, if any, of losses attributable to Special Hazard Losses allocated to the
Class C-B Certificates since the Closing Date. All Stated Principal Balances for the purpose of this definition will be calculated as
of the first day of the month preceding such Distribution Date after giving effect to scheduled installments of principal and
interest on the Mortgage Loans then due, whether or not paid. The Special Hazard Loss Coverage Amount may be reduced below the
amount set forth above for any Distribution Date with the consent of the Rating Agencies as evidenced by a letter of each Rating
Agency to the Trust Administrator to the effect that any such reduction will not result in a downgrading of the current ratings
assigned to such Classes of Certificates rated by it.
Special Hazard Loss Coverage Termination Date: The date on which the Special Hazard Loss Coverage Amount has been
reduced to zero.
Special Servicer: SPS, and its successors and permitted assigns.
Special Serviced Mortgage Loan: The Mortgage Loans for which the Special Servicer acts as servicer pursuant to
Section 3.17.
SPS: Select Portfolio Servicing, Inc., a Utah corporation, and its successors and assigns.
SPS Mortgage Loans: Any SPS Serviced Mortgage Loans for which SPS has not entered into a subservicing arrangement
for such Mortgage Loan pursuant to Section 3.02 hereof.
SPS Serviced Mortgage Loans: The Mortgage Loans identified as such on the Mortgage Loan Schedule for which SPS is
the applicable Servicer or the Special Servicer.
Standard Hazard Policy: Each standard hazard insurance policy or replacement therefor referred to in Section 3.09.
Startup Day: The Closing Date.
Stated Principal Balance: With respect to any Mortgage Loan and date of determination, the principal balance of
such Mortgage Loan as of the Cut-off Date, after application of the principal portion of all Scheduled Payments due on or before the
Cut-off Date, whether or not received, minus the sum of (i) all amounts allocable to principal that have been distributed to
Certificateholders with respect to such Mortgage Loan on or before that date of determination and (ii) any Realized Losses on such
Mortgage Loan that have been allocated to one or more Classes of Certificates on or before that date of determination.
Stepdown Date: The date occurring on the later of (x) the Distribution Date in March 2009 and (y) the first
Distribution Date on which the Group 6 Senior Enhancement Percentage (calculated for this purpose after giving effect to payments or
other recoveries in respect of the Mortgage Loans in Loan Group 6 during the related Collection Period but before giving effect to
payments on the Group 6 Certificates on such Distribution Date) is greater than or equal to 19.50%.
Stock Power: With respect to a Cooperative Loan, an assignment of the stock certificate or an assignment of the
Cooperative Shares issued by the Cooperative Corporation.
Streamlined Mortgage Loan: A Mortgage Loan originated in connection with the refinance of a mortgage loan pursuant
to the Seller's streamlined documentation program then in effect.
Subcontractor: Any vendor, subcontractor or other Person that (i) is a Servicing Function Participant and (ii) 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 Trustee or the Trust Administrator.
Subordinate Certificates: As set forth in the Preliminary Statement.
Subordinate Component Balance: For any of Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4 and Loan Group 5,
as of any date of determination, the Aggregate Loan Group Balance of such Loan Group as of such date of determination, minus the sum
of the then outstanding aggregate Class Principal Balance of the related Classes of Class A Certificates.
Subordinate Liquidation Amount: For any Distribution Date and any of Loan Group 1, Loan Group 2, Loan Group 3, Loan
Group 4 or Loan Group 5 the excess, if any, of the aggregate Liquidation Principal of all Mortgage Loans in that Loan Group which
became Liquidated Mortgage Loans during the calendar month preceding the Distribution Date over the Group 1 Senior Liquidation
Amount, Group 2 Senior Liquidation Amount, Group 3 Senior Liquidation Amount, Group 4 Senior Liquidation Amount or Group 5 Senior
Liquidation Amount, as applicable, for such Distribution Date.
Subordinate Percentage: With respect to any Distribution Date and Loan Group 1, Loan Group 2, Loan Group 3, Loan
Group 4 or Loan Group 5, the excess of 100% over the related Senior Percentage for that Distribution Date.
Subordinate Prepayment Percentage: With respect to any Distribution Date and with respect to Loan Group 1, Loan
Group 2, Loan Group 3, Loan Group 4 or Loan Group 5, 100% minus the related Senior Prepayment Percentage for such Distribution Date;
provided, however, that if the aggregate Class Principal Balance of the Senior Certificates related to such Loan Group has been
reduced to zero, then the Subordinate Prepayment Percentage for such Loan Group will equal 100%.
Subordinate Principal Distribution Amount: With respect to any Distribution Date, the sum of the following amounts
for each of Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4 or Loan Group 5: (i) the related Subordinate Percentage of the
related Principal Payment Amount, (ii) the related Subordinate Prepayment Percentage of the related Principal Prepayment Amount, and
(iii) the related Subordinate Liquidation Amount; less the amount of certain cross-collateralization payments as made pursuant to
Section 4.07.
Subordination Level: With respect to any Distribution Date and any Class of Class C-B Certificates, the percentage
obtained by dividing the sum of the Class Principal Balances of all Classes of Class C-B Certificates which are subordinate in right
of payment to such Class by the sum of the Class Principal Balances of the Group 1, Group 2, Group 3, Group 4 and Group 5 and
Class C-B Certificates, in each case immediately prior to such Distribution Date.
Subservicing Agreement: An agreement between a Servicer and a Sub-Servicer for the servicing of the related
Mortgage Loans.
Substitution Adjustment Amount: As defined in Section 2.03.
Sub-Servicer: Any Person that (i) is a Servicing Function Participant, (ii) services Mortgage Loans on behalf of any
Servicer, and (iii) is responsible for the performance (whether directly or through sub-servicers or Subcontractors) of Servicing
functions required to be performed under this Agreement, any related Designated Servicing Agreement or any sub-servicing agreement
that are identified in Item 1122(d) of Regulation AB.
Supplemental Interest Account: As defined in Section 4.11 hereof. The Supplemental Interest Account will not be an
asset of any REMIC.
Supplemental Interest Trust: The trust created pursuant to Section 4.11 herein and designated as the "Supplemental
Interest Trust," consisting of the Swap Agreement, the Supplemental Interest Account and the right to receive Net Swap Payments from
the Swap Counterparty.
Supplemental Interest Trust Trustee: The Trust Administrator, acting not in its individual capacity but solely as
trustee of the Supplemental Interest Trust.
Supplemental Trust Payment: An amount equal to the Swap Fee Amount for such Swap Payment Date.
Swap Agreement: The swap agreement relating to the Class 6-A-1 Certificates consisting of ISDA Master Agreement
(Multicurrency Cross-Border) and a schedule dated as of the Closing Date and the related confirmation thereto, between the
Supplemental Interest Trust Trustee and the Swap Counterparty, as such agreement may be amended and supplemented in accordance with
its terms.
Swap Calculation Period: Each period from and including the Distribution Date in the preceding calendar month to,
but excluding, the related Distribution Date, except that the initial Swap Calculation Period will commence on, and include, February
28, 2006 and the final Swap Calculation Period will end on, but exclude, the Swap Termination Date, provided that such Swap
Calculation Period shall be adjusted pursuant to the "Modified Following Business Day Convention" (as defined in the Class 6-A-1 Swap
Agreement).
Swap Counterparty: Credit Suisse International.
Swap Counterparty Payment: An amount equal to the product of (a) the Formula Rate for the Class 6-A-1 Certificates
for the related Distribution Date minus the excess of (1) the Net Funds Cap for such Distribution Date over the (2) the Swap Fee
Rate, (b) a fraction, the numerator of which is the actual number of days elapsed in the related Swap Calculation Period and the
denominator of which is 360 and (c) the Swap Notional Amount.
Swap Counterparty Reimbursement Amount: With respect to any Distribution Date or Swap Payment Date, an amount equal
to the sum of (1) the amount of any Swap Counterparty Payment for such date, minus the amount of any Swap Fee Reimbursement Amount or
portion thereof paid to the Swap Counterparty on such date, (2) any amount described in clause (1) remaining unpaid from prior
Distribution Dates and Swap Payment Dates and (3) interest on the amount in clause (2) for the related Accrual Period calculated on
the basis of One-Month LIBOR plus the Certificate Margin for the Class 6-A-1 Certificates.
Swap Counterparty Trigger Event: (i) an Event of Default (as defined in the Swap Agreement) with respect to which
the swap counterparty is a Defaulting Party (as defined in the Swap Agreement), (ii) a Termination Event (as defined in the Swap
Agreement) under the Swap Agreement with respect to which the Swap Counterparty is the sole Affected Party (as defined in the Swap
Agreement) or (iii) an Additional Termination Event (as defined in the Swap Agreement) under the Swap Agreement with respect to which
the Swap Counterparty is the sole Affected Party.
Swap Event of Default: An "Event of Default" as such term is defined in the Swap Agreement.
Swap Fee Amount: An amount equal to the product of (a) the Swap Fee Rate, (b) a fraction, the numerator of which is
the actual number of days elapsed in the related Swap Calculation Period and the denominator of which is 360 and (c) the Swap
Notional Amount.
Swap Fee Reimbursement Amount: With respect to any Swap Payment Date, an amount equal to the Swap Fee Amount for
such Swap Payment Date minus the amount of the Net Swap Payment paid by the Supplemental Interest Trust for such Swap Payment Date.
Swap Fee Rate: As defined in the Swap Agreement.
Swap Notional Amount: With respect to the Swap Agreement and each Swap Payment Date, an amount equal to the lesser
of (1) the aggregate Class Principal Balance of the Class 6-A-1 Certificates for the immediately preceding Distribution Date after
giving effect to distributions on such Distribution Date (or as of the Closing Date for the first Distribution Date) and (2) the
Aggregate Loan Group Balance for Loan Group 6 for the related Distribution Date.
Swap Payment Date: The Business Day before each Distribution Date.
Swap Suspension Event: With respect any Distribution Date, either (a) the occurrence of a default by the Swap
Counterparty under the Swap Agreement in the timely payment of any Net Swap Payment owed by the Swap Counterparty to the Supplemental
Interest Trust on the related Swap Payment Date or (b) the Swap Agreement has been terminated and no replacement Swap Agreement is in
force and effect.
Swap Termination Date: Immediately following the earlier to occur of (a) the Final Scheduled Distribution Date and
(b) the date on which the Terminating Entity has purchased all of the Group 6 Mortgage Loans from the Trust, unless terminated
earlier in accordance with the terms of the Swap Agreement.
Swap Termination Payment: Upon the designation of an Early Termination Date (as defined in the Swap Agreement), the
payment to be made by the Trust to the Supplemental Interest Account for payment to the Swap Counterparty, or by the Swap
Counterparty to the Supplemental Interest Account for payment to the Trust, as applicable, pursuant to the terms of the Swap
Agreement.
Targeted Overcollateralization Amount: For any Distribution Date prior to the Stepdown Date, 0.65% of the Aggregate
Loan Group Balance for Loan Group 6 as of the Cut-off Date; with respect to any Distribution Date on or after the Stepdown Date and
with respect to which a Trigger Event is not in effect, the greater of (a) 1.30% of the Aggregate Loan Group Balance for Loan Group 6
for such Distribution Date, or (b) 0.50% of the Aggregate Loan Group Balance for Loan Group 6 as of the Initial Cut-off Date; with
respect to any Distribution Date on or after the Stepdown Date with respect to which a Trigger Event has occurred and is continuing,
the Targeted Overcollateralization Amount for the Distribution Date immediately preceding such Distribution Date.
Tax Matters Person: The person designated as "tax matters person" in the manner provided under Treasury regulation
ss. 1.860F 4(d) and temporary Treasury regulation ss. 301.6231(a)(7)1T. Initially, the Tax Matters Person shall be the Trust
Administrator.
Telerate Page 3750: The display designated as page 3750 on Bridge Telerate Service (or such other page as may
replace page 3750 on that service for the purpose of displaying London interbank offered rates of major banks).
Terminating Auction Date: With respect to Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4 and Loan Group 5,
as defined in Section 11.01(d) and with respect to Loan Group 6, as defined in Section 11.01(e).
Terminating Auction Purchaser: With respect to Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4 and Loan
Group 5, as defined in Section 11.01(d) and with respect to Loan Group 6, as defined in Section 11.01(e).
Terminating Auction Sale: With respect to Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4 and Loan Group 5,
as defined in Section 11.01(d) and with respect to Loan Group 6, as defined in Section 11.01(e).
Terminating Entity: The entity determined by the Trust Administrator pursuant to Section 11.02 of this Agreement.
Transferring Servicer: As defined in Section 3.17 hereof.
Transferee Affidavit and Agreement: As defined in Section 6.02(g)(i)(B).
Trigger Event: A Trigger Event will occur for any Distribution Date if either (i) the Rolling Three Month
Delinquency Rate as of the last day of the related Collection Period equals or exceeds 34.00% of the Group 6 Senior Enhancement
Percentage for such Distribution Date or (ii) the cumulative Realized Losses as a percentage of the Aggregate Loan Group Balance for
Loan Group 6 on the Closing Date for such Distribution Date is greater than the percentage set forth in the following table:
--------------------------------------------- -----------------------------------------------
Range of Distribution Dates Cumulative Loss Percentage
--------------------------------------------- -----------------------------------------------
--------------------------------------------- -----------------------------------------------
March 2009 - February 2010 1.00%*
--------------------------------------------- -----------------------------------------------
--------------------------------------------- -----------------------------------------------
March 2010 - February 2011 1.28%*
--------------------------------------------- -----------------------------------------------
--------------------------------------------- -----------------------------------------------
March 2011 - February 2012 1.57%*
--------------------------------------------- -----------------------------------------------
--------------------------------------------- -----------------------------------------------
March 2012 and thereafter 1.85%*
--------------------------------------------- -----------------------------------------------
* The cumulative loss percentages set forth above are applicable to the first Distribution Date in the
corresponding range of Distribution Dates. The cumulative loss percentage for each succeeding Distribution
Date in a range increases incrementally by 1/12 of the positive difference between the percentage
applicable to the first Distribution Date in that range and the percentage applicable to the first
Distribution Date in the succeeding range.
Trust: The trust created pursuant to Section 2.01 this Agreement.
Trust Administrator: Xxxxx Fargo Bank, N.A., a national banking association, not in its individual capacity, but
solely in its capacity as trust administrator for the benefit of the Certificateholders under this Agreement, and any successor
thereto, as provided herein.
Trust Administrator Fee: As specified in Section 10.05.
Trust Administrator Fee Rate: As to each Mortgage Loan, a per annum rate equal to 0.00%.
Trust Collateral: With respect to Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4 and Loan Group 5, as
defined in Section 11.01(c)(i) and with respect to Loan Group 6, as defined in Section 11.01(c)(ii).
Trust Fund: The corpus of the Trust created by this Agreement consisting of (a) the Mortgage Loans, including all
interest and principal received or receivable by the Depositor on or with respect to the Mortgage Loans after the Cut-off Date, but
not including payments of principal and interest due and payable on the Mortgage Loans on or before the Cut-off Date, together with
the Mortgage Files relating to the Mortgage Loans, (b) REO Property, (c) the Collection Account, the Certificate Account, the Group 6
Interest Rate Cap Account and all amounts deposited therein pursuant to the applicable provisions of this Agreement, (d) any
insurance policies with respect to the Mortgage Loans, (e) the Depositor's rights under the Assignment and Assumption Agreement,
(f) the Trust's rights under the Group 6 Interest Rate Cap Agreement, and (g) all proceeds of the conversion, voluntary or
involuntary, of any of the foregoing into cash or other liquid property.
Trust Receipt and Final Certification: As defined in Section 2.02(a).
Trust Receipt and Initial Certification: As defined in Section 2.02(a).
Trustee: U.S. Bank National Association, a national banking association, not in its individual capacity, but solely
in its capacity as trustee for the benefit of the Certificateholders under this Agreement, and any successor thereto, as provided
herein.
Trustee Mortgage File: The mortgage documents listed in Section 2.01 hereof pertaining to a particular Mortgage
Loan and any additional documents required to be added to the Trustee Mortgage File pursuant to this Agreement.
Uncertificated Accrued Interest: With respect to any Uncertificated Regular Interest for any Distribution Date, one
month's interest at the related Uncertificated Pass-Through Rate for such Distribution Date, accrued on the Uncertificated Principal
Balance or Uncertificated Notional Amount, as applicable, immediately prior to such Distribution Date. Uncertificated Accrued
Interest for the Uncertificated Regular Interests shall accrue on the basis of a 360-day year consisting of twelve 30-day months.
For purposes of calculating the amount of Uncertificated Accrued Interest for the REMIC I Regular Interests for any Distribution
Date, any Prepayment Interest Shortfalls (to the extent not covered by Compensating Interest Payments) relating to the Group 1,
Group 2, Group 3, Group 4 and Group 5 Mortgage Loans for any Distribution Date shall be allocated among the REMIC I Regular Interests,
pro rata, based on, and to the extent of, Uncertificated Accrued Interest, as calculated without application of this sentence. For
purposes of calculating the amount of Uncertificated Accrued Interest for the REMIC II Regular Interests for any Distribution Date,
any Prepayment Interest Shortfalls (to the extent not covered by Compensating Interest Payments) relating to the Group 6 Mortgage
Loans for any Distribution Date shall be allocated among the REMIC II Regular Interests, pro rata, based on, and to the extent of,
Uncertificated Accrued Interest, as calculated without application of this sentence. REMIC III Regular Interest 6-X-PO shall bear no
interest. Accrued interest on REMIC III Regular Interest 6-X-IO for each Distribution Date shall equal accrued Current Interest for
the Class 6-X Certificates.
Uncertificated Pass-Through Rate: For any REMIC I Regular Interest or REMIC II Regular Interest, the per annum rate
set forth or calculated in the manner described in the Preliminary Statement under "REMIC I" or "REMIC II," respectively.
Uncertificated Principal Balance: The principal amount of any REMIC I or REMIC II Regular Interest outstanding as
of any date of determination. As of the Closing Date, the Uncertificated Principal Balance of each REMIC I and REMIC II Regular
Interest shall equal the amount set forth in the Preliminary Statement hereto as its Initial Uncertificated Principal Balance under
"REMIC I" and "REMIC II," respectively. On each Distribution Date, the Uncertificated Principal Balance of each REMIC I Regular
Interest and REMIC II Regular Interest shall be reduced, in the case of REMIC I Regular Interests, by the sum of (i) the principal
portion of Realized Losses allocated to the REMIC I Regular Interests in accordance with the definition of REMIC I Realized Losses
and (ii) the amounts deemed distributed on each Distribution Date in respect of principal on the REMIC I Regular Interests pursuant
to Section 4.01(IV)(a)(i), and in the case of REMIC II Regular Interests, by the sum of (i) the principal portion of Realized Losses
allocated to the REMIC II Regular Interests in accordance with the definition of REMIC II Realized Losses and (ii) the amounts deemed
distributed on each Distribution Date in respect of principal on the REMIC II Regular Interests pursuant to Section 4.01(IV)(a)(ii).
Uncertificated Regular Interest: Any of the REMIC I Regular Interests and REMIC II Regular Interests.
Undercollateralized Group: As defined in Section 4.07(b).
Underwriter's Exemption: Prohibited Transaction Exemption 2002-41, 67 Fed. Reg. 54487 (2002), as amended (or any
successor thereto), or any substantially similar administrative exemption granted by the U.S. Department of Labor.
U.S. Person: A citizen or resident of the United States, a corporation, partnership or other entity treated as a
corporation or partnership for federal income tax purposes created or organized in, or under the laws of, the United States, any
State thereof or the District of Columbia, an estate or trust whose income from sources without the United States is includable in
gross income for United States federal income tax purposes regardless of its connection with the conduct of a trade or business
within the United States, or any trust treated as a United States Person under Code Section 7701(a)(30).
Voting Rights: The portion of the voting rights of all the Certificates that is allocated to any Certificate for
purposes of the voting provisions of this Agreement. At all times during the term of this Agreement, 99% of all Voting Rights shall
be allocated among the Class A Certificates (other than the Residual Certificates), Class M Certificates and Class C-B Certificates.
The portion of such 99% Voting Rights allocated to each of the Class A Certificates (other than the Residual Certificates), Class M
Certificates and Class C-B Certificates shall be based on the fraction, expressed as a percentage, the numerator of which is the
Class Principal Balance of each such Class then outstanding and the denominator of which is the aggregate Class Principal Balance of
all such Classes then outstanding. At all times during the term of this Agreement, the Class 6-X Certificates shall be allocated 1%
of the Voting Rights. Voting Rights shall be allocated among the Certificates within each Class in proportion to their respective
outstanding Class Principal Balances or Class Notional Amounts, as applicable. The Class AR and Class AR-L Certificates shall have
no Voting Rights.
Weighted Average Pass-Through Rate: With respect to any Distribution Date and Loan Group a rate equal to the
weighted average of the Net Mortgage Rates on the Mortgage Loans in such Loan Group as of the second preceding Due Date (excluding
any such Mortgage Loans that were subject to a Payoff, the principal of which was distributed on the Distribution Date preceding the
current Distribution Date) after giving effect to payments due on such Due Date, whether or not received, weighted on the basis of
the Stated Principal Balances as of such date.
Xxxxx Fargo: Xxxxx Fargo Bank, N.A., and its successors and assigns.
Xxxxx Fargo Serviced Mortgage Loans: The Mortgage Loans identified as such on the Mortgage Loan Schedule, for which
Xxxxx Fargo is the applicable Servicer.
ARTICLE II
CONVEYANCE OF MORTGAGE LOANS;
REPRESENTATIONS AND WARRANTIES
SECTION 2.01. Conveyance of Trust Fund.
(a) The Depositor does hereby establish the Adjustable Rate Mortgage Trust 2006-1 (the "Trust") and sells, transfers, assigns,
delivers, sets over and otherwise conveys to the Trustee in trust for the benefit of the Certificateholders, without recourse, the
Depositor's right, title and interest in and to (a) the Initial Mortgage Loans listed in the Mortgage Loan Schedule, including all
interest and principal received or receivable by the Depositor on or with respect to the Initial Mortgage Loans after the Initial
Cut-off Date and any Assigned Prepayment Premiums with respect thereto, but not including payments of principal and interest due and
payable on the Initial Mortgage Loans on or before the Initial Cut-off Date, together with the Mortgage Files relating to the Initial
Mortgage Loans, (b) REO Property, (c) the Collection Account, the Certificate Account, the Group 6 Interest Rate Cap Account and all
amounts deposited therein pursuant to the applicable provisions of this Agreement, (d) any insurance policies with respect to the
Initial Mortgage Loans, (e) the Depositor's rights under the Assignment and Assumption Agreement and (f) all proceeds of the
conversion, voluntary or involuntary, of any of the foregoing into cash or other liquid property.
(b) In connection with the transfer and assignment set forth in clause (a) above, the Depositor has delivered or caused to be
delivered to a Custodian for the benefit of the Certificateholders, the documents and instruments with respect to each Initial
Mortgage Loan as assigned:
(i) (A) the original Mortgage Note bearing all intervening endorsements and including any riders to the Mortgage Note, endorsed
"Pay to the order of ________________, without recourse" and signed in the name of the last named endorsee by an authorized officer or
(B) with respect to any Lost Mortgage Note, a lost note affidavit and indemnity from the Seller stating that the original Mortgage
Note was lost or destroyed, (together with a copy of such Mortgage Note, if available) and indemnifying the Trust Fund against any
loss, cost or liability resulting from the failure to deliver the original Mortgage Note;
(ii) the original of any guarantee executed in connection with the Mortgage Note (if any);
(iii) for each Mortgage Loan that is not a MERS Mortgage Loan, the original Mortgage, with evidence of recording thereon, or
copies certified by the related recording office or if the original Mortgage has not yet been returned from the recording office, a
copy certified by or on behalf of the Seller indicating that such Mortgage has been delivered for recording (the return directions
for the original Mortgage should indicate, when recorded, mail to the Seller) and in the case of each MERS Mortgage Loan, the
original Mortgage, noting the presence of the MIN of the related Mortgage Loan and either language indicating that the Mortgage Loan
is a MOM Loan if the Mortgage Loan is a MOM Loan or if the Mortgage Loan was not a MOM Loan at origination, the original Mortgage and
the assignment thereof to MERS, with evidence of recording indicated thereon or a copy of the Mortgage certified by the public
recording office in which such Mortgage has been recorded;
(iv) the originals of all assumption, modification, consolidation or extension agreements, (or, if an original of any of these
documents has not been returned from the recording office, a copy thereof certified by or on behalf of the Seller, the original to be
delivered to the Seller forthwith after return from such recording office) with evidence of recording thereon, if any;
(v) for each Mortgage Loan that is not a MERS Mortgage Loan, the original Assignment of Mortgage as appropriate, in recordable
form, for each Mortgage Loan from the last assignee assigned in blank;
(vi) for each Mortgage Loan that was not a MERS Mortgage Loan at its origination, the originals of any intervening recorded
Assignments of Mortgage, showing a complete chain of assignment from origination to the last assignee, including warehousing
assignments, with evidence of recording thereon (or, if an original intervening Assignment of Mortgage has not been returned from the
recording office, a copy thereof certified by or on behalf of the Seller, the original to be delivered to the Custodian forthwith
after return from such recording office);
(vii) the original mortgage title insurance policy, or copy of title commitment (or in appropriate jurisdictions, attorney's
opinion of title and abstract of title); and
(viii) with respect to a Cooperative Loan, if any, the originals of the following documents or instruments:
(A) the Cooperative Shares, together with the Stock Power in blank;
(B) the executed Security Agreement;
(C) the executed Proprietary Lease and the Assignment of Proprietary Lease to the originator of the Cooperative Loan;
(D) the executed Recognition Agreement;
(E) Copies of the original UCC financing statement, and any continuation statements, filed by the originator of such Cooperative
Loan as secured party, each with evidence of recording thereof, evidencing the interest of the originator under the Security
Agreement and the Assignment of Proprietary Lease;
(F) Copies of the filed UCC assignments or amendments of the security interest referenced in clause (E) above showing an
unbroken chain of title from the originator to the Trust, each with evidence of recording thereof, evidencing the interest of the
assignee under the Security Agreement and the Assignment of Proprietary Lease;
(G) An executed assignment of the interest of the originator in the Security Agreement, the Assignment of Proprietary Lease and
the Recognition Agreement, showing an unbroken chain of title from the originator to the Trust; and
(H) For any Cooperative Loan that has been modified or amended, the original instrument or instruments effecting such
modification or amendment.
In addition, in connection with the assignment of any MERS Mortgage Loan, the Seller agrees that it will cause, at
the Seller's expense, the MERS(R) System to indicate that such Mortgage Loans have been assigned by the Seller to the Trustee in
accordance with this Agreement (and any Subsequent Transfer Agreement) for the benefit of the Certificateholders by including (or
deleting, in the case of Mortgage Loans which are repurchased or substituted in accordance with this Agreement) the information
required by the MERS(R) System to (a) identify the Trustee and (b) identify the series of the Certificates issued in connection with
such Mortgage Loans. The Trustee shall confirm, or cause the Custodian to confirm, on the Final Certification of the Custodian that
such assignment has occurred. The Seller further agrees that it will not, and will not permit a Servicer to, and each related
Servicer agrees that it will not, alter the information referenced in this paragraph with respect to any Mortgage Loan during the
term of this Agreement unless and until such Mortgage Loan is repurchased or substituted in accordance with the terms of this
Agreement.
In the event the Depositor delivers to the Custodian certified copies of any document or instrument set forth in
2.01(b) because of a delay caused by the public recording office in returning any recorded document, the Depositor shall deliver or
cause to be delivered to the Custodian, within 60 days of the Closing Date or the related Subsequent Transfer Date, as applicable, an
Officer's Certificate which shall (i) identify the recorded document, (ii) state that the recorded document has not been delivered to
the Custodian due solely to a delay caused by the public recording office, and (iii) state the amount of time generally required by
the applicable recording office to record and return a document submitted for recordation.
In the event that in connection with any Mortgage Loan the Depositor cannot deliver (a) for a Mortgage Loan that is
not a MERS Mortgage Loan, the original recorded Mortgage, (b) all interim recorded assignments or (c) the lender's title policy
(together with all riders thereto) satisfying the requirements set forth above, concurrently with the execution and delivery hereof
because such document or documents have not been returned from the applicable public recording office in the case of clause (a) or
(b) above, or because the title policy has not been delivered to the Seller or the Depositor by the applicable title insurer in the
case of clause (c) above, the Depositor shall promptly deliver to the Custodian, in the case of clause (a) or (b) above, such
original Mortgage or such interim assignment, as the case may be, with evidence of recording indicated thereon upon receipt thereof
from the public recording office, or a copy thereof, certified, if appropriate, by the relevant recording office and, in the case of
clause (c) above, any title policy upon receipt from the applicable title insurer.
As promptly as practicable subsequent to such transfer and assignment, and in any event, within thirty (30) days
thereafter, DLJMC shall, at its expense, (i) affix or cause to be affixed the Trustee's name to each Assignment of Mortgage, as the
assignee thereof, (ii) cause such assignment to be in proper form for recording in the appropriate public office for real property
records within thirty (30) days after receipt thereof and (iii) cause to be delivered for recording in the appropriate public office
for real property records the assignments of the Mortgages to the Trustee, except that, with respect to any assignment of a Mortgage
as to which DLJMC has not received the information required to prepare such assignment in recordable form, DLJMC's obligation to do
so and to deliver the same for such recording shall be as soon as practicable after receipt of such information and in any event
within thirty (30) days after the receipt thereof, and DLJMC need not cause to be recorded any assignment which relates to a Mortgage
Loan in any jurisdiction under the laws of which, as evidenced by an Opinion of Counsel delivered by the Depositor (at the
Depositor's expense) to the Trustee, the Trust Administrator and DLJMC, acceptable to the Rating Agencies, the recordation of such
assignment is not necessary to protect the Trustee's and the Certificateholders' interest in the related Mortgage Loan.
If any original Mortgage Note referred to in Section 2.01(b)(i) above cannot be located, the obligations of the
Depositor to deliver such documents shall be deemed to be satisfied upon delivery to the Custodian of a photocopy of such Mortgage
Note, if available, with a lost note affidavit and indemnity. If any of the original Mortgage Notes for which a lost note affidavit
and indemnity was delivered to the Custodian is subsequently located, such original Mortgage Note shall be delivered to the Custodian
within three (3) Business Days.
(c) The Trustee and the Trust Administrator are authorized to enter into one or more Custodial Agreements, at the direction of
the Depositor, for the purpose of having a Custodian maintain custody of the documents and instruments referred to in this
Section 2.01, and any documents delivered thereunder shall be delivered to the Custodian and any Officer's Certificates delivered with
respect thereto shall be delivered to the Trustee, the Trust Administrator and the Custodian.
(d) It is the express intent of the parties to this Agreement that the conveyance of the Mortgage Loans by the Depositor to the
Trustee as provided in this Section 2.01 be, and be construed as, a sale of the Mortgage Loans by the Depositor to the Trustee. It
is, further, not the intention of the parties to this Agreement 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. However, in the event that, notwithstanding the
intent of the parties to this Agreement, the Mortgage Loans are held to be the property of the Depositor, or if any for any other
reason this Agreement is held or deemed to create a security interest in the Mortgage Loans then (a) this Agreement shall also be
deemed to be a security agreement within the meaning of Articles 8 and 9 of the New York Uniform Commercial Code; (b) the conveyance
provided for in this Section 2.01 shall be deemed to be a grant by the Depositor to the Trustee for the benefit of the
Certificateholders of a security interest in all of the Depositor's right, title and interest in and to (1) the Mortgage Loans listed
in the Mortgage Loan Schedule, including all interest and principal received or receivable by the Depositor on or with respect to the
Mortgage Loans after the related Cut-off Date and any Assigned Prepayment Premiums with respect thereto, but not including payments
of principal and interest due and payable on the Mortgage Loans on or before the related Cut-off Date, together with the Mortgage
Files relating to the Mortgage Loans, (2) REO Property, (3) the Collection Account, the Certificate Account, the Group 6 Interest
Rate Cap Account and all amounts deposited therein pursuant to the applicable provisions of this Agreement, (4) any insurance
policies with respect to the Mortgage Loans, (5) the Depositor's rights under the Assignment and Assumption Agreement and (6) all
proceeds of the conversion, voluntary or involuntary, of any of the foregoing into cash or other liquid property; (c) the possession
by the Trustee or any Custodian of such items of property and such other items of property as constitute instruments, money,
negotiable documents or chattel paper shall be deemed to be "in possession by the secured party" for purposes of perfecting the
security interest pursuant to Section 9-313 of the New York Uniform Commercial Code; and (d) 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
benefit of the Certificateholders for the purpose of perfecting such security interest under applicable law (except that nothing in
this clause (d) shall cause any person to be deemed to be an agent of the Trustee for any purpose other than for perfection of such
security interests unless, and then only to the extent, expressly appointed and authorized by the Trustee in writing). The Depositor
and the Trustee, upon directions from the Depositor, shall, to the extent consistent with this Agreement, take such actions as may be
necessary to ensure that, if this Agreement were deemed to create a security interest in the Mortgage Loans, such security interest
would be deemed to be a perfected security interest of first priority under applicable law and will be maintained as such throughout
the term of this Agreement.
(e) The Depositor hereby authorizes and directs the Trustee to (i) execute the Group 6 Interest Rate Cap Agreement and (ii) to
ratify, on behalf of the Trust, the terms agreed to by the Depositor with respect to the Group 6 Interest Rate Cap Agreement. The
Depositor shall pay or cause to be paid on behalf of the Trust the payments owed to the Group 6 Interest Rate Cap Counterparty as of
the Closing Date pursuant to the terms of the Group 6 Interest Rate Cap Agreement.
(f) [Reserved].
(g) [Reserved].
(h) Except as specifically set forth in this Agreement or by separate written agreement among the related parties hereto, the
Depositor, the Seller, each Servicer and the Master Servicer agree that the provisions of this Agreement shall supercede any
provisions in any existing mortgage loan purchase agreement or servicing agreement with respect to the Mortgage Loans for which the
Depositor, the Seller, a Servicer or the Master Servicer may be a party.
SECTION 2.02. Acceptance by the Trustee.
(a) Pursuant to Section 4 of the LaSalle Custodial Agreement, the Custodian agrees to execute and deliver on the Closing Date to
the Depositor, the Trustee and the Trust Administrator a Trust Receipt and Initial Certification in the form annexed hereto as
Exhibit I. Based on its review and examination, and only as to the documents identified in such Trust Receipt and Initial
Certification, the Custodian acknowledges that such documents appear regular on their face and relate to such Initial Mortgage Loan.
The Custodian shall be under no duty or obligation to inspect, review or examine said documents, instruments, certificates or other
papers to determine that the same are genuine, enforceable or appropriate for the represented purpose or that they have actually been
recorded in the real estate records or that they are other than what they purport to be on their face.
Pursuant to Section 6 of the LaSalle Custodial Agreement, not later than 90 days after the Closing Date, the
Custodian shall deliver to the Depositor, the Trustee and the Trust Administrator a Trust Receipt and Final Certification in the form
annexed hereto as Exhibit J, with any applicable exceptions noted thereon.
Based solely upon the Trust Receipt and Initial Certification received from the Custodian, and subject to the
provisions of Section 2.01 and any exceptions noted on the exception report described in the next paragraph below, the Trustee
acknowledges receipt of the documents referred to in Section 2.01 above and declares that it holds and will hold such documents and
the other documents delivered to it constituting the Mortgage File, and that it holds or will hold all such assets and such other
assets included in the definition of the Trust Fund in trust for the exclusive use and benefit of all present and future
Certificateholders.
If, in the course of such review, the Custodian finds any document constituting a part of a Mortgage File which does
not meet the requirements of Section 2.01, the Custodian shall list such as an exception in the Trust Receipt and Final Certification
pursuant to Section 6 of the LaSalle Custodial Agreement; provided, however, that the Custodian shall not make any determination as
to whether (i) any endorsement is sufficient to transfer all right, title and interest of the party so endorsing, as noteholder or
assignee thereof, in and to that Mortgage Note or (ii) any assignment is in recordable form or is sufficient to effect the assignment
of and transfer to the assignee thereof under the mortgage to which the assignment relates.
The Seller shall promptly correct or cure such defect within 90 days from the date it was so notified of such defect
and, if the Seller does not correct or cure such defect within such period and such defect materially and adversely affects the
interests of Certificateholders in the related Mortgage Loan, the Seller shall either (a) substitute for the related Mortgage Loan a
Qualified Substitute Mortgage Loan, which substitution shall be accomplished in the manner and subject to the conditions set forth in
Section 2.03, or (b) repurchase such Mortgage Loan within 90 days from the date that the Seller was notified of such defect in
writing at the Purchase Price of such Mortgage Loan; or such longer period not to exceed 720 days from the Closing Date if the
substitution or repurchase of a Mortgage Loan pursuant to this provision is required by reason of a delay in delivery of any
documents by the appropriate recording office or title insurer, as applicable; provided, however, that the Seller shall have no
liability for recording any Assignment of Mortgage in favor of the Trustee or for the Custodian's failure to record such Assignment
of Mortgage, and provided, further, that no Seller shall be obligated to repurchase or cure any Mortgage Loan solely as a result of
the Custodian's failure to record such Assignment of Mortgage. The Trust Administrator shall deliver or direct the Custodian to
deliver to each Rating Agency written notice within 270 days from the Closing Date indicating each Mortgage Loan (a) for which a
mortgage or assignment of mortgage required to be recorded hereunder has not been returned by the appropriate recording office or
(b) as to which there is a dispute as to location or status of such Mortgage Loan. Such notice shall be delivered every 90 days
thereafter until the related Mortgage Loan is returned to the Custodian. Any such substitution pursuant to clause (a) of the
preceding sentence shall not be effected prior to the delivery to the Trustee and the Trust Administrator of (1) the Opinion of
Counsel required by Section 2.05 hereof, and (2) a Request for Release substantially in the form of Exhibit K. No substitution is
permitted to be made in any calendar month after the Determination Date for such month. The Purchase Price for any such Mortgage
Loan shall be deposited by the Seller in the related Collection Account on or prior to the Business Day immediately preceding such
Distribution Date in the month following the month during which the Seller became obligated hereunder to repurchase or replace such
Mortgage Loan and, upon receipt of such deposit and certification with respect thereto in the form of Exhibit K hereto, the Custodian
shall release the related Mortgage File to the Seller and shall execute and deliver at such entity's request such instruments of
transfer or assignment prepared by such entity, in each case without recourse, as shall be necessary to vest in such entity, or a
designee, the Trustee's interest in any Mortgage Loan released pursuant hereto.
If pursuant to the preceding paragraph the Seller repurchases a Mortgage Loan that is a MERS Mortgage Loan, the
related Servicer shall, at the Seller's expense, either (i) cause MERS to execute and deliver an Assignment of Mortgage in recordable
form to transfer the Mortgage from MERS to the Seller and shall cause such Mortgage to be removed from registration on the MERS(R)
System in accordance with MERS' rules and regulations or (ii) cause MERS to designate on the MERS(R) System the Seller as the
beneficial holder of such Mortgage Loan.
The Custodian shall execute and deliver prior to 10:00 a.m. (New York time) on each Subsequent Transfer Date to the
Depositor, the Trust Administrator and each Servicer a Subsequent Certification in the form annexed hereto as Exhibit I-2. Based on
its review and examination, and only as to the documents identified in such Subsequent Certification, the Custodian shall acknowledge
that such documents appear regular on their face and relate to such Subsequent Mortgage Loan. None of the Trustee, the Trust
Administrator or the Custodian shall be under any duty or obligation to inspect, review or examine said documents, instruments,
certificates or other papers to determine that the same are genuine, enforceable or appropriate for the represented purpose or that
they have actually been recorded in the real estate records or that they are other than what they purport to be on their face.
(b) It is understood and agreed that the obligation of the Seller to cure, substitute for or to repurchase any Mortgage Loan
which does not meet the requirements of Section 2.01 shall constitute the sole remedy respecting such defect available to the
Trustee, the Trust Administrator, the Depositor and any Certificateholder against the Seller.
(c) With respect to any Mortgage Loan which becomes delinquent in payment by 90 days or more or is an REO Property, DLJMC shall
have the right to repurchase such Mortgage Loan from the Trust at a price equal to the Purchase Price; provided, however, that
(i) such Mortgage Loan is still 90 days or more delinquent or is an REO Property as of the date of such repurchase and (ii) this
repurchase option, if not theretofore exercised, shall terminate on the date at the close of business on the 90th day after the
Mortgage Loan is 90 days delinquent or the Mortgage Loan becomes an REO Property; provided, further, that in no event shall
repurchases pursuant to this paragraph take place with respect to Mortgage Loans constituting more than 5% of the aggregate Cut-off
Date Principal Balance of the Mortgage Loans. This repurchase obligation, if not exercised, shall not be thereafter reinstated
unless the delinquency is cured and the Mortgage Loan thereafter again becomes 90 days delinquent or becomes an REO Property, in
which case the option shall again become exercisable as of the first day the Mortgage Loan becomes 90 days or more delinquent or
becomes an REO Property.
In the event that DLJMC exercises such option, the Purchase Price therefor shall be deposited in the related
Collection Account and upon such deposit of the Purchase Price and receipt of a Request for Release in the form of Exhibit K hereto,
the Custodian shall release the related Mortgage File held for the benefit of the Certificateholders to DLJMC, and the Trustee shall
execute and deliver at DLJMC's direction such instruments of transfer or assignment prepared by DLJMC, in each case without recourse,
as shall be necessary to transfer title from the Trustee to DLJMC.
SECTION 2.03.
Representations and Warranties of the Seller, Master Servicer and Servicers.
(a) Each of DLJMC, in its capacity as Seller, Xxxxx Fargo, in its capacity as Master Servicer, SPS, in its capacity as Servicer
and Special Servicer, and Xxxxx Fargo, in its capacity as Servicer, hereby makes the representations and warranties applicable to it
set forth in Schedules IIA, IIB, IIC, or IID, as applicable hereto, and by this reference incorporated herein, to the Depositor, the
Trustee and the Trust Administrator, as of the Closing Date, or if so specified therein, as of the Cut-off Date or such other date as
may be specified. In addition, SPS, in its capacity as Servicer and Special Servicer, and Xxxxx Fargo, in its capacity as Servicer,
makes the representations and warranties applicable to it set forth in Schedules IIC and IID hereto, respectively, and by this
reference incorporated herein, to the Master Servicer as of the Closing Date, or if so specified therein, as of the Cut-off Date or
such other date as may be specified.
(b) DLJMC, in its capacity as Seller, hereby makes the representations and warranties set forth in Schedule III as to the
Mortgage Loans and by this reference incorporated herein, to the Depositor, the Trustee and the Trust Administrator, as of the
Closing Date, or if so specified therein, as of the Cut-off Date or such other date as may be specified.
(c) Upon discovery by any of the parties hereto of a breach of a representation or warranty made pursuant to
Section 2.03(b) that materially and adversely affects the interests of the Certificateholders in any Mortgage Loan, the party
discovering such breach shall give prompt notice thereof to the other parties. The Seller hereby covenants that within 90 days of
the earlier of its discovery or its receipt of written notice from any party of a breach of any representation or warranty made by it
pursuant to Section 2.03(b) which materially and adversely affects the interests of the Certificateholders in any Mortgage Loan sold
by the Seller to the Trust, it shall cure such breach in all material respects, and if such breach is not so cured, shall, (i) if
such 90 day period expires prior to the second anniversary of the Closing Date, remove such Mortgage Loan (a "Deleted Mortgage Loan")
from the Trust Fund and substitute in its place a Qualified Substitute Mortgage Loan, in the manner and subject to the conditions set
forth in this Section; or (ii) repurchase the affected Mortgage Loan or Mortgage Loans at the Purchase Price in the manner set forth
below; provided, however, that any such substitution pursuant to (i) above shall not be effected prior to the delivery to the Trustee
and the Trust Administrator of the Opinion of Counsel required by Section 2.05 hereof, if any, and any such substitution pursuant to
(i) above shall not be effected prior to the additional delivery to the Trustee or the Trust Administrator of a Request for Release
substantially in the form of Exhibit K relating to the Deleted Mortgage Loan and the Mortgage File for any such Qualified Substitute
Mortgage Loan. The Seller shall promptly reimburse the Trustee, the Trust Administrator, the Special Servicer and the related
Servicer (if such Servicer is not the Seller of such Mortgage Loan) for any actual out of pocket expenses reasonably incurred by the
Trustee, the Trust Administrator, the Special Servicer and the related Servicer (if such Servicer is not the Seller of such Mortgage
Loan) in respect of enforcing the remedies for such breach. With respect to any representation and warranties described in this
Section which are made to the best of the Seller's knowledge if it is discovered by any of the Depositor, the Master Servicer, the
Seller, any Servicer, the Special Servicer, the Trustee or the Trust Administrator that the substance of such representation and
warranty is inaccurate and such inaccuracy materially and adversely affects the value of the related Mortgage Loan or the interests
of the Certificateholders therein, notwithstanding the Seller's lack of knowledge with respect to the substance of such
representation or warranty, such inaccuracy shall be deemed a breach of the applicable representation or warranty.
With respect to any Qualified Substitute Mortgage Loan or Loans, the Seller shall deliver to the Custodian for the
benefit of the Certificateholders the Mortgage Note, the Mortgage, the related assignment of the Mortgage, and such other documents
and agreements as are required by Section 2.01(b), with the Mortgage Note endorsed and the Mortgage assigned as required by
Section 2.01. No substitution is permitted to be made in any calendar month after the Determination Date for such month. Scheduled
Payments due with respect to Qualified Substitute Mortgage Loans in the month of substitution shall not be part of the Trust Fund and
will be retained by the Seller on the next succeeding Distribution Date. For the month of substitution, distributions to
Certificateholders will include the monthly payment due on any Deleted Mortgage Loan for such month and thereafter the Seller shall
be entitled to retain all amounts received in respect of such Deleted Mortgage Loan. The Seller shall amend the Mortgage Loan
Schedule for the benefit of the Certificateholders to reflect the removal of such Deleted Mortgage Loan and the substitution of the
Qualified Substitute Mortgage Loan or Loans and the Seller shall deliver the amended Mortgage Loan Schedule to the Trustee, the
Servicers and the Trust Administrator. Upon such substitution, the Qualified Substitute Mortgage Loan or Loans shall be subject to
the terms of this Agreement in all respects, and the Seller shall be deemed to have made with respect to such Qualified Substitute
Mortgage Loan or Loans, as of the date of substitution, the representations and warranties made pursuant to Section 2.03(b) with
respect to such Mortgage Loan. Upon any such substitution and the deposit to the Collection Account of the amount required to be
deposited therein in connection with such substitution as described in the following paragraph, the Trustee shall instruct the
Custodian to release the Mortgage File held for the benefit of the Certificateholders relating to such Deleted Mortgage Loan to the
Seller and the Trustee shall execute and deliver at the Seller's direction such instruments of transfer or assignment prepared by the
Seller, in each case without recourse, as shall be necessary to vest title in the Seller, or its designee, the Trustee's interest in
any Deleted Mortgage Loan substituted for pursuant to this Section 2.03.
For any month in which the Seller substitutes one or more Qualified Substitute Mortgage Loans for one or more
Deleted Mortgage Loans, the Master Servicer shall determine the amount (if any) by which the aggregate principal balance of all such
Qualified Substitute Mortgage Loans as of the date of substitution is less than the aggregate Stated Principal Balance of all such
Deleted Mortgage Loans (after application of the scheduled principal portion of the monthly payments due in the month of
substitution). The amount of such shortage (the "Substitution Adjustment Amount") plus an amount equal to the aggregate of any
unreimbursed Advances, Servicing Advances and unpaid Servicing Fees with respect to such Deleted Mortgage Loans shall be deposited in
the related Collection Account by the Seller on or before the Business Day immediately preceding the Distribution Date in the month
succeeding the calendar month during which the related Mortgage Loan became required to be repurchased or replaced hereunder.
One or more mortgage loans may be substituted for one or more Deleted Mortgage Loans. The determination of whether
a mortgage loan is a Qualified Substitute Mortgage Loan may be satisfied on an individual basis. Alternatively, if more than one
mortgage loan is to be substituted for one or more Deleted Mortgage Loans, the characteristics of such mortgage loans and Deleted
Mortgage Loans shall be aggregated or calculated on a weighted average basis, as applicable, in determining whether such mortgage
loans are Qualified Substitute Mortgage Loans.
In the event that the Seller shall be required to repurchase a Mortgage Loan pursuant to this Agreement, the
Purchase Price therefor shall be deposited in the related Collection Account on or before the Business Day immediately preceding the
Distribution Date in the month following the month during which the Seller became obligated hereunder to repurchase or replace such
Mortgage Loan and upon such deposit of the Purchase Price and receipt of a Request for Release in the form of Exhibit K hereto, the
Custodian shall release the related Mortgage File held for the benefit of the Certificateholders to such Person, and the Trustee
shall execute and deliver at such Person's direction such instruments of transfer or assignment prepared by such Person, in each case
without recourse, as shall be necessary to transfer title from the Trustee. It is understood and agreed that the obligation under
this Agreement of any Person to cure, repurchase or substitute any Mortgage Loan as to which a breach has occurred and is continuing
shall constitute the sole remedy against such Persons respecting such breach available to Certificateholders, the Depositor, the
Trustee or the Trust Administrator on their behalf.
The representations and warranties made pursuant to this Section 2.03 shall survive delivery of the respective
Mortgage Files to the Trustee, the Trust Administrator or the Custodian for the benefit of the Certificateholders.
SECTION 2.04. Representations and Warranties of the Depositor as to the Mortgage Loans.
The Depositor hereby represents and warrants to the Trustee with respect to the Mortgage Loans that, as of the
Closing Date, assuming good title has been conveyed to the Depositor, the Depositor had good title to the Mortgage Loans and Mortgage
Notes, and did not encumber the Mortgage Loans during its period of ownership thereof, other than as contemplated by the Agreement.
It is understood and agreed that the representations and warranties set forth in this Section 2.04 shall survive
delivery of the Mortgage Files to the Custodian.
SECTION 2.05. Delivery of Opinion of Counsel in Connection with Substitutions.
Notwithstanding any contrary provision of this Agreement, no substitution pursuant to Section 2.02 shall be made
more than ninety (90) days after the Closing Date unless the Seller delivers to the Trustee and the Trust Administrator an Opinion of
Counsel, which Opinion of Counsel shall not be at the expense of any of the Trustee, the Trust Administrator or the Trust Fund,
addressed to the Trustee and the Trust Administrator, to the effect that such substitution will not (i) result in the imposition of
the tax on "prohibited transactions" on the Trust Fund or contributions after the Startup Date, as defined in Sections 860F(a)(2) and
860G(d) of the Code, respectively, or (ii) cause any REMIC created hereunder to fail to qualify as a REMIC at any time that any
Certificates are outstanding; provided, however, that no Opinion of Counsel shall be required if (A) the substitution occurs within
two years of the Closing Date and (B) the substitution occurs with respect to Mortgage Loans that are "defective" under the Code and
the Seller delivers to the Trustee and the Trust Administrator an Officer's Certificate substantially in the form of Exhibit Z.
SECTION 2.06. Issuance of Certificates.
The Trustee acknowledges the assignment to it of the Mortgage Loans together with the assignment to it of all other
assets included in the Trust Fund, receipt of which, subject to the provisions of Section 2.02(a), is hereby acknowledged.
Concurrently with such assignment and delivery and in exchange therefor, the Trust Administrator, pursuant to the written request of
the Depositor executed by an officer of the Depositor, has executed the Certificates and caused them to be authenticated and
delivered to or upon the order of the Depositor in authorized denominations which evidence ownership of the Trust Fund. The rights
of the Holders of such Certificates to receive distributions from the Trust Fund and all ownership interests of the Holders of the
Certificates in such distributions shall be as set forth in this Agreement.
SECTION 2.07.
REMIC Provisions.
(a) The Depositor hereby elects and authorizes the Trust Administrator to treat the Trust Fund (exclusive of any entitlement to
Assigned Prepayment Premiums, the Group 6 Interest Rate Cap Agreement, the assets held in the Group 6 Interest Rate Cap Account, and
rights to payments from the Supplemental Interest Account) as the number of separate REMICs specified in the Preliminary Statement
(each, a "REMIC") under the Code and, if necessary, under applicable state law and apply such Preliminary Statement in determining
the rights of the Interests in REMICs thereby created. Each such election will be made on Form 1066 or other appropriate federal tax
or information return (including Form 8811) or any appropriate state return (x) for the taxable year ending on the last day of the
calendar year in which the Certificates are issued and (y) for the taxable year ending on the last day of the calendar year in which
Certificates are first sold to a third party. The Closing Date is hereby designated as the "startup day" of each REMIC created
hereunder within the meaning of Section 860G(a)(9) of the Code. The "regular interests" (within the meaning of Section 860G of the
Code) in each REMIC shall consist of the regular interests with the terms set forth for each REMIC in the Preliminary Statement and
the Class AR and Class AR-L Certificates shall represent the beneficial ownership of the "residual interest" in each REMIC created
hereunder. Neither the Depositor nor the Trust Administrator nor the Trustee shall permit the creation of any "interests" (within
the meaning of Section 860G of the Code) in any REMIC other than as set forth in the Preliminary Statement.
(b) The Trust Administrator shall act as the "tax matters person" (within the meaning of the REMIC Provisions) for each REMIC
created hereunder, in the manner provided under Treasury regulations section 1.860F 4(d) and temporary Treasury regulations section
301.6231(a)(7)1T. In the event that for any reason, the Trust Administrator is not recognized as the tax matters person then the
Trust Administrator shall act as agent for the Class AR and the Class AR-L Certificateholder as tax matters person. By its
acceptance of a Residual Certificate, each Holder thereof shall have agreed to such appointment and shall have consented to the
appointment of the Trust Administrator as its agent to act on behalf of each REMIC created hereunder pursuant to the specific duties
outlined herein.
(c) A Holder of a Residual Certificate, by the purchase of such Certificate, shall be deemed to have agreed to timely pay, upon
demand by the Trust Administrator, the amount of any minimum California state franchise taxes due with respect to the related REMIC
created hereunder under Sections 23151(a) and 23153(a) of the California Revenue and Taxation Code. Notwithstanding the foregoing,
the Trust Administrator shall be authorized to retain the amount of such tax from amounts otherwise distributable to such Holder in
the event such Holder does not promptly pay such amount upon demand by the Trust Administrator. In the event that any other federal,
state or local tax is imposed, including without limitation taxes imposed on a "prohibited transaction" of a REMIC as defined in
Section 860F of the Code, such tax shall be charged against amounts otherwise available for distribution to the applicable Holder of
a Residual Certificate and then against amounts otherwise available for distribution to the Holders of Regular Certificates in
accordance with the provisions set forth in Section 4.01. The Trust Administrator or the Trustee shall promptly deposit in the
Certificate Account any amount of "prohibited transaction" tax that results from a breach of the Trust Administrator's or the
Trustee's duties, respectively, under this Agreement. The Master Servicer or the related Servicer shall promptly deposit in the
Certificate Account any amount of "prohibited transaction" tax that results from a breach of the Master Servicer's or such Servicer's
duties, respectively, under this Agreement.
(d) The Trust Administrator shall act as attorney in fact and as the tax matters person of each REMIC created hereunder and in
such capacity the Trust Administrator shall: (i) prepare, sign and file, or cause to be prepared, signed and filed, federal and
state tax returns using a calendar year as the taxable year for each REMIC created hereunder when and as required by the REMIC
Provisions and other applicable federal income tax laws as the direct representative of each such REMIC in compliance with the Code
and shall provide copies of such returns as required by the Code; (ii) make an election, on behalf of each REMIC created hereunder,
to be treated as a REMIC on the federal tax return of such REMIC for its first taxable year, in accordance with the REMIC Provisions;
and (iii) prepare and forward, or cause to be prepared and forwarded, to the Certificateholders and to any governmental taxing
authority all information reports as and when required to be provided to them in accordance with the REMIC Provisions. The expenses
of preparing and filing such returns shall be borne by the Trust Administrator. The Depositor, the Master Servicer and the related
Servicer shall provide on a prompt and timely basis to the Trust Administrator or its designee such information with respect to each
REMIC created hereunder as is in their possession and reasonably required or requested by the Trust Administrator to enable it to
perform its obligations under this subsection.
In its capacity as attorney in fact and as the tax matters person, the Trust Administrator shall also: (A) act on
behalf of each REMIC created hereunder in relation to any tax matter or controversy involving the Trust Fund, (B) represent the Trust
Fund in any administrative or judicial proceeding relating to an examination or audit by any governmental taxing authority with
respect thereto and (C) cause to be paid solely from the sources provided herein the amount of any taxes imposed on each REMIC
created hereunder when and as the same shall be due and payable (but such obligation shall not prevent the Trust Administrator or any
other appropriate Person from contesting any such tax in appropriate proceedings and shall not prevent the Trust Administrator from
withholding payment of such tax, if permitted by law, pending the outcome of such proceedings).
(e) 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 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 REMIC created hereunder.
(f) The Trustee, to the extent directed by the Trust Administrator, the Depositor and the Holder of the Residual Certificates
shall take any action or cause the Trust Fund to take any action necessary to create or maintain the status of each REMIC created
hereunder as a REMIC under the REMIC Provisions and shall assist each other as necessary to create or maintain such status. Neither
the Trustee, to the extent directed or (in the case of a failure to act) not directed by the Trust Administrator, nor the Holder of
the Residual Certificates shall take any action, cause the Trust Fund to take any action or fail to take (or fail to cause the Trust
Fund to take) any action that, under the REMIC Provisions, if taken or not taken, as the case may be, could (i) endanger the status
of each REMIC created hereunder as a REMIC or (ii) result in the imposition of a tax upon a REMIC (including, but not limited to, the
tax on prohibited transactions as defined in Code Section 860F(a)(2) and the tax on prohibited contributions set forth in
Section 860G(d) of the Code) (either such event, an "Adverse REMIC Event") unless the Trustee and the Trust Administrator have
received an Opinion of Counsel (at the expense of the party seeking to take such action) to the effect that the contemplated action
will not endanger such status or result in the imposition of such a tax.
The Trustee and the Trust Administrator shall not take or fail to take any action (whether or not authorized
hereunder) as to which the Master Servicer, a Servicer or the Depositor 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. In addition, prior to taking any action
with respect to a REMIC or their assets, or causing any REMIC created hereunder to take any action, which is not expressly permitted
under the terms of this Agreement, the Trustee and the Trust Administrator will consult with the Master Servicer, the Servicers and
the Depositor or their designees, in writing, with respect to whether such action could cause an Adverse REMIC Event to occur with
respect to any REMIC created hereunder and the Trustee and the Trust Administrator shall not take any such action or cause that REMIC
to take any such action as to which the Master Servicer, any Servicer or the Depositor has advised it in writing that an Adverse
REMIC Event could occur.
In addition, prior to taking any action with respect to any REMIC created hereunder or the assets therein, or
causing any REMIC created hereunder to take any action, which is not expressly permitted under the terms of this Agreement, the
Holder of the Residual Certificates will consult with the Trust Administrator or its designee, in writing, with respect to whether
such action could cause an Adverse REMIC Event to occur with respect to any REMIC created hereunder, and no such Person shall take
any action or cause the Trust Fund to take any such action as to which the Trust Administrator has advised it in writing that an
Adverse REMIC Event could occur. The Trustee and the Trust Administrator may consult with counsel to make such written advice, and
the cost of same shall be borne by the party seeking to take action not permitted by this Agreement.
At all times as may be required by the Code, the Trust Administrator will, to the extent within its control and the
scope of its duties more specifically set forth herein, maintain substantially all of the assets of each REMIC created hereunder as
"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.
(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 "net income from foreclosure property" of such REMIC, as defined in Section 860G(c) of the Code, on
any contributions to a 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 related Servicer, if such
Servicer has in its sole discretion determined to indemnify the Trust Fund against such tax or if such tax arises out of or results
from a breach of such Servicer's duties under (x) Section 2.07(j) of this Agreement to not enter into any arrangement by which a
REMIC would receive a fee or other compensation for services or to permit such REMIC to receive any income from assets other than
"qualified mortgages" or "permitted investments," (y) Section 3.01 of this Agreement to not make or permit any modification, waiver or
amendment of any Mortgage Loan which would cause any REMIC created hereunder to fail to qualify as a REMIC or result in the
imposition of any tax under Section 860F(a) or Section 860G(d) of the Code or (z) Section 3.11(c) of this Agreement to not cause any
REO Property to fail to qualify as "foreclosure property" within the meaning of Section 860G(a)(8) of the Code or to subject any
REMIC created hereunder to the imposition of any federal, state or local income taxes on the income earned from such Mortgaged
Property under Section 860G(c) of the Code of otherwise, (ii) to the Master Servicer, if such tax arises out of or results from a
breach by the Master Servicer of any of its obligations under this Agreement or if the Master Servicer has in its sole discretion
determined to indemnify the Trust Fund against such tax, (iii) to the Trust Administrator, if such tax arises out of or results from
a breach by the Trust Administrator of any of its obligations under this Article II, (iv) to the Trustee, if such tax arises out of
or results from a breach by the Trustee of any of its obligations under this Article II or (v) otherwise against amounts on deposit
in the Collection Account as provided by Section 3.08 and on the Distribution Date(s) following such reimbursement the aggregate of
such taxes shall be allocated in reduction of the Interest Distribution Amount on each Class entitled thereto in the same manner as
if such taxes constituted a Prepayment Interest Shortfall.
In accordance with Section 2.07(c), the related Servicer, the Master Servicer, the Trustee or the Trust
Administrator, as applicable, shall promptly deposit in the Certificate Account or Collection Account, as applicable, any amount of
such tax.
For purposes of this Section 2.07(g), a tax is imposed following the final and unappealable determination under the
Code of the amount of such tax and written notice thereof by the Tax Matters Person to the party to be charged.
The failure of the Master Servicer or the related Servicer to promptly deposit in the Certificate Account or
Collection Account, as applicable, any amount of such tax shall be an Event of Default, as provided in Section 8.01(b).
(h) The Trust Administrator shall, for federal income tax purposes, maintain books and records with respect to each REMIC
created hereunder on a calendar year and on an accrual basis or as otherwise may be required by the REMIC Provisions.
(i) Following the Startup Day, none of any Servicer, the Trustee (which will act only at the direction of the Trust
Administrator or as otherwise specifically provided in this Agreement) or the Trust Administrator shall accept any contributions of
assets to any REMIC created hereunder unless (subject to Section 2.05) such Servicer, the Trustee or the Trust Administrator shall
have received an Opinion of Counsel (at the expense of the party seeking to make such contribution) to the effect that the inclusion
of such assets in a REMIC will not cause that REMIC to fail to qualify as a REMIC at any time that any Certificates are outstanding,
or subject that REMIC to any tax under the REMIC Provisions or other applicable provisions of federal, state and local law or
ordinances.
(j) None of any Servicer, the Trustee (which will act only at the direction of the Trust Administrator or as otherwise
specifically provided in this Agreement) or the Trust Administrator shall (subject to Section 2.05) enter into any arrangement by
which a REMIC will receive a fee or other compensation for services nor permit such 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.
(k) Within 30 days after the Closing Date, the Trust Administrator shall apply to the Internal Revenue Service for an employer
identification number for each REMIC created hereunder by means of a Form SS-4 or other acceptable means and prepare and file with
the Internal Revenue Service Form 8811, "Information Return for Real Estate Mortgage Investment Conduits (REMIC) and Issuers of
Collateralized Debt Obligations" for each REMIC created hereunder.
(l) None of the Trustee (which will act only at the direction of the Trust Administrator or as otherwise specifically provided
in this Agreement), the Trust Administrator, the Master Servicer or any Servicer shall sell, dispose of or substitute for any of the
Mortgage Loans (except in connection with (i) the default, imminent default or 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 any REMIC
created hereunder, (iii) the termination of any REMIC created hereunder pursuant to Article X of this Agreement or (iv) a purchase of
Mortgage Loans pursuant to Article II or III of this Agreement) nor acquire any assets for a REMIC, nor sell or dispose of any
investments in the Collection Account or the Certificate Account for gain nor accept any contributions to a REMIC after the Closing
Date (a) unless it has received an Opinion of Counsel that such sale, disposition, substitution or acquisition will not affect
adversely the status of any REMIC created hereunder as a REMIC or (b) unless the Master Servicer or such Servicer has determined in
its sole discretion to indemnify the Trust Fund against such tax.
(m) In order to enable the Trust Administrator to perform its duties as set forth herein, the Depositor shall provide, or cause
to be provided to the Trust Administrator, within ten days after the Closing Date, all information or data the Trust Administrator
determines to be relevant for tax purposes to the valuations and offering prices of the Certificates, including, without limitation,
the price, yield, prepayment assumption and projected cash flows of the Certificates and the Mortgage Loans and the Trust
Administrator shall be entitled to rely upon any and all such information and data in the performance of its duties set forth
herein. Thereafter, the Master Servicer shall provide, promptly upon request therefor, any such additional information or data that
the Trustee or the Trust Administrator may from time to time reasonably request in order to enable the Trustee and the Trust
Administrator to perform their duties as set forth herein and the Trustee and the Trust Administrator shall be entitled to rely upon
any and all such information and data in the performance of its duties set forth herein. DLJMC shall indemnify the Trust
Administrator and hold it harmless for any loss, liability, damage, claim or expense of the Trust Administrator arising from any
failure of the Depositor to provide, or to cause to be provided, accurate information or data to the Trust Administrator on a timely
basis. The Master Servicer shall indemnify the Trustee and the Trust Administrator and hold it harmless for any loss, liability,
damage, claim or expense of the Trustee and the Trust Administrator arising from any failure of the Master Servicer to provide, or to
cause to be provided, accurate information or data required to be provided by the Master Servicer to the Trustee and the Trust
Administrator on a timely basis; provided, however, that if any Servicer shall fail to provide such information to the Master
Servicer upon timely request for such information by the Master Servicer, that Servicer shall indemnify the Master Servicer, the
Trustee and the Trust Administrator and hold it harmless for any loss, liability, damage, claim or expense of the Master Servicer,
the Trustee and the Trust Administrator arising from any failure of that Servicer to provide, or to cause to be provided, the
information referred to above on a timely basis. The indemnification provisions hereunder shall survive the termination of this
Agreement and shall extend to any co-trustee and co-Trust Administrator appointed pursuant to this Agreement.
(n) The Trust Administrator shall account for the rights of the Holders of the Group 6 Senior Certificates and Class M
Certificates to receive payments in respect of Basis Risk Shortfalls and the rights of the Holders of the Class 6-A-1 Certificates to
receive payments from the Supplemental Interest Account as rights in an interest rate cap contract written by the Class 6-X
Certificateholders in favor of the Holders of the Group 6 Senior Certificates and Class M Certificates and not as an obligation of
REMIC III, whose obligation to pay interest on the REMIC III Regular Interests evidenced by such Certificates will be subject to a
cap equal to the Net Funds Cap. The Trust Administrator shall account for such rights as property held separate and apart from such
REMIC III Regular Interests as required by Treasury regulation section 1.860G-2(i). Any amounts paid from the Interest Remittance
Amount or Principal Remittance Amount to the holders of the Group 6 Senior Certificates and Class M Certificates in respect of Basis
Risk Shortfalls or to the Supplemental Interest Trust for payment to the Swap Counterparty shall be deemed to have first been
distributed from REMIC III to the holders of the Class 6-X Certificates in respect of REMIC III Regular Interest 6 X-IO and then paid
by such holders to the holders of the Group 6 Senior Certificates and Class M Certificates or the Supplemental Interest Trust, as
applicable. Any amounts distributed to the holders of the Class 6-A-1 Certificates by the Trust Administrator from amounts it
receives from the Supplemental Interest Account shall be deemed to have first been paid outside of any REMIC to the holders of the
Class 6-X Certificates in respect of their rights with respect to the Supplemental Interest Trust and then paid outside of any REMIC
by such holders to holders of the Class 6-A-1 Certificates. In addition, the Class 6-X Certificateholders shall be deemed to have
entered into a contractual arrangement with the Class AR and Class AR-L Certificateholders whereby the Class AR and Class AR-L
Certificateholders agree to pay to the Class 6-X Certificateholders on each Distribution Date amounts that would, in the absence of
such contractual agreement, be distributable with respect to the residual interest in REMIC III pursuant to Section 4.01(II)(d)(xv)
(which amounts are expected to be zero). Thus each Group 6 Senior Certificate and Class M Certificate shall be treated as
representing ownership of not only a REMIC III Regular Interest, but also ownership of an interest in an interest rate cap contract.
Each Class 6-X Certificate shall be treated as representing ownership of not only two REMIC III Regular Interests, but also
ownership of an obligation under an interest rate cap contract. For purposes of determining the issue price of the REMIC III Regular
Interests, the Trust Administrator shall assume that the interest rate cap contract has a value of $5,000.
For any Distribution Date on which there is a payment under the Group 6 Interest Rate Cap Agreement based on a
notional balance in excess of the Class Principal Balance of the Group 6 Certificates, the amount representing such excess payment
shall not be an asset of the Trust and, instead, shall be paid into and distributed out of a separate trust created by this Agreement
for the benefit of the Group 6 Certificates and shall be distributed to the Group 6 Certificates pursuant to Section 4.01(II). The
Trust Administrator shall not be responsible for any tax reporting with respect to such separate trust.
SECTION 2.08. Covenants of the Master Servicer and each Servicer.
The Master Servicer and each Servicer, severally and not jointly, hereby covenants to the Depositor, the Trustee and
the Trust Administrator as follows:
(a) Such Servicer or the Master Servicer shall comply in the performance of its obligations under this Agreement with all
reasonable rules and requirements of the insurer under each Mortgage Guaranty Insurance Policy; and
(b) No written information, certificate of an officer, statement furnished in writing or written report delivered to the
Depositor, any affiliate of the Depositor, the Trustee or the Trust Administrator and prepared by the Master Servicer or such
Servicer pursuant to this Agreement will contain any untrue statement of a material fact.
ARTICLE III
ADMINISTRATION AND SERVICING
OF MORTGAGE LOANS
SECTION 3.01. Servicers to Service Mortgage Loans.
For and on behalf of the Certificateholders, as independent contractors of the Trust, (i) each Servicer, severally
and not jointly, shall service and administer the related Non-Designated Mortgage Loans in accordance with the terms of this
Agreement and with Accepted Servicing Practices and with all applicable requirements of the Servicing Criteria, (ii) the Master
Servicer shall, in accordance with Section 3.03 of this Agreement, master service and administer the Non-Designated Mortgage Loans by
overseeing and enforcing the servicing of the Non-Designated Mortgage Loans by the related Servicer according to the terms of this
Agreement and (iii) the Master Servicer shall, in accordance with the Section 3.20 of this Agreement, master service and administer
the Designated Mortgage Loans by overseeing and enforcing the servicing of the Designated Mortgage Loans by the related Designated
Servicer according to the terms of the related Designated Servicing Agreement. The obligations of each of SPS and Xxxxx Fargo
hereunder to service and administer the Mortgage Loans shall be limited to the SPS Serviced Mortgage Loans and the Xxxxx Fargo
Serviced Mortgage Loans, respectively, and with respect to the duties and obligations of each Servicer, references herein to related
"Mortgage Loans" shall be limited to the SPS Serviced Mortgage Loans (and the related proceeds thereof and related REO Properties) in
the case of SPS, and the Xxxxx Fargo Serviced Mortgage Loans (and the related proceeds thereof and related REO Properties) in the
case of Xxxxx Fargo, and in no event shall any Servicer have any responsibility or liability with respect to any of the other
Mortgage Loans. The obligations of the Master Servicer to master service and administer the Non-Designated Mortgage Loans shall be
limited to the Xxxxx Fargo Serviced Mortgage Loans, the SPS Serviced Mortgage Loans and the Special Serviced Mortgage Loans. In
connection with such servicing and administration of the Non-Designated Mortgage Loans, the Master Servicer and each Servicer shall
have full power and authority, acting alone and/or through Sub-Servicers as provided in Section 3.02 hereof, to do or cause to be
done any and all things that it may deem necessary or desirable in connection with such servicing and administration, including but
not limited to, the power and authority, subject to the terms hereof (i) to execute and deliver, on behalf of the Certificateholders
and the Trust, 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 (but only in the manner provided in this Agreement), (iii) to
collect any Insurance Proceeds and other Liquidation Proceeds, and (iv) to effectuate foreclosure or other conversion of the
ownership of the Mortgaged Property securing any Mortgage Loan; provided, that neither the Master Servicer nor a Servicer shall take
any action that is inconsistent with or prejudices the interests of the Trust Fund or the Certificateholders in any Mortgage Loan or
the rights and interests of the Depositor, the Trustee, the Trust Administrator or the Certificateholders under this Agreement. The
Master Servicer and each Servicer shall represent and protect the interests of the Trust Fund in the same manner as it protects its
own interests in mortgage loans in its own portfolio in any claim, proceeding or litigation regarding a Mortgage Loan, and shall not
make or permit any modification, waiver or amendment of any Mortgage Loan that would cause any REMIC created hereunder to fail to
qualify as a REMIC or result in the imposition of any tax under Section 860F(a) or Section 860G(d) of the Code. Without limiting the
generality of the foregoing, the Master Servicer and each Servicer, in its own name or in the name of the Depositor and the Trust, is
hereby authorized and empowered by the Depositor, the Trust and the Trust Administrator, when the Master Servicer or such Servicer
believes it appropriate in its reasonable judgment, to execute and deliver, on behalf of the Trust, the Trustee, the Trust
Administrator, the Depositor, the Certificateholders or any of them, 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 with respect to
the Mortgaged Properties held for the benefit of the Certificateholders. The Master Servicer and each Servicer shall prepare and
deliver to the Depositor and/or the Trustee and/or the Trust Administrator such documents requiring execution and delivery by either
or both of them as are necessary or appropriate to enable the Master Servicer or such Servicer to master service and administer or
service and administer the Mortgage Loans, as applicable, to the extent that the Master Servicer or such Servicer is not permitted to
execute and deliver such documents pursuant to the preceding sentence. Upon receipt of such documents, the Depositor and/or the
Trustee or the Trust Administrator shall execute such documents and deliver them to the Master Servicer or such Servicer.
In accordance with the standards of the first paragraph of this Section 3.01 and unless determined in good faith to
be a Nonrecoverable Advance, each Servicer 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 related to the Non-Designated Mortgage Loans, which advances constitute
Servicing Advances and shall be reimbursable in the first instance from related collections from the Mortgagors pursuant to
Section 3.06, and further as provided in Section 3.08. In no event will any Servicer be required to make any Servicing Advance which
would constitute a Nonrecoverable Advance. The costs incurred by a Servicer, if any, in effecting the timely payments of taxes and
assessments on the Mortgaged Properties related to the Non-Designated Mortgage Loans and related insurance premiums shall not, for
the purpose of calculating monthly distributions to the Certificateholders, be added to the Stated Principal Balances of the related
Non-Designated Mortgage Loans, notwithstanding that the terms of such Non-Designated Mortgage Loans so permit. The parties to this
Agreement acknowledge that Servicing Advances shall be reimbursable pursuant to the terms of this Agreement and agree that no
Servicing Advance shall be rejected or disallowed by any party unless it has been shown that such Servicing Advance was not made in
accordance with this Agreement.
Each Servicer hereby acknowledges that, to the extent such Servicer has previously serviced some or all of the
Non-Designated Mortgage Loans pursuant to another servicing agreement, the servicing provisions contained in this Agreement shall
supersede the servicing provisions contained in such other servicing agreement from and after the Closing Date, except that such
other servicing agreement shall survive and govern with respect to excess servicing fees and termination without cause. In addition,
the Master Servicer hereby acknowledges that, to the extent the Master Servicer or any Designated Servicer has previously serviced
some or all of the Designated Mortgage Loans pursuant to another servicing agreement, the provisions contained in the related
Designated Servicing Agreement shall supersede the provisions contained in such other servicing agreement from and after the Closing
Date.
Notwithstanding anything in this Agreement to the contrary, the purchase of any Xxxxx Fargo Serviced Mortgage Loan
by any Person shall be subject to the rights of Xxxxx Fargo to continue servicing such Xxxxx Fargo Serviced Mortgage Loan for the
same Servicing Fee substantially in accordance with the terms of this Agreement.
With respect to each Mortgage Loan, the related Servicer will fully furnish, in accordance with the Fair Credit
Reporting Act and its implementing regulations, accurate and complete information (e.g., favorable and unfavorable) on its borrower
credit files to Equifax, Experian and Trans Union Credit Information Company, on a monthly basis.
Each Servicer is authorized and empowered by the Trustee, on behalf of the Certificateholders and the Trustee, in
its own name or in the name of any Sub-Servicer, when a Servicer or any Sub-Servicer, as the case may be, believes it appropriate in
its best judgment to register any related Mortgage Loan on the MERS(R) System, or cause the removal from the registration of such
Mortgage Loan on the MERS(R) 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.
SECTION 3.02. Subservicing; Enforcement of the Obligations of Sub-Servicers.
(a) The Non-Designated Mortgage Loans may be subserviced by a Sub-Servicer on behalf of the related Servicer in accordance with
the servicing provisions of this Agreement; provided, that the Sub-Servicer must be a FNMA-approved lender or a FHLMC seller/servicer
in good standing. With respect to the Non-Designated Mortgage Loans, each Servicer may perform any of its servicing responsibilities
hereunder or may cause the Sub-Servicer to perform any such servicing responsibilities on its behalf, but the use by such Servicer of
the Sub-Servicer shall not release such Servicer from any of its obligations hereunder and such Servicer shall remain responsible
hereunder for all acts and omissions of the Sub-Servicer as fully as if such acts and omissions were those of such Servicer. With
respect to the Non-Designated Mortgage Loans, each Servicer shall pay all fees and expenses of any Sub-Servicer engaged by such
Servicer from its own funds.
A Servicer shall not permit a Sub-Servicer to perform any servicing responsibilities hereunder with respect to the
Non-Designated Mortgage Loans unless that Sub-Servicer first agrees in writing with such Servicer to deliver an Assessment of
Compliance and an Accountant's Attestation in such manner and at such times that permits that Servicer to comply with Sections 13.07
and 13.08 of this Agreement.
Notwithstanding the foregoing, with respect to the Non-Designated Mortgage Loans, each Servicer shall be entitled to
outsource one or more separate servicing functions to a Person (each, an "Outsourcer") that does not meet the eligibility
requirements for a Sub-Servicer, so long as such outsourcing does not constitute the delegation of such Servicer's obligation to
perform all or substantially all of the servicing of the related Non-Designated Mortgage Loans to such Outsourcer. In such event,
the use by a Servicer of any such Outsourcer shall not release the related Servicer from any of its obligations hereunder and such
Servicer shall remain responsible hereunder for all acts and omissions of such Outsourcer as fully as if such acts and omissions were
those of such Servicer, and such Servicer shall pay all fees and expenses of the Outsourcer from such Servicer's own funds.
A Servicer shall not outsource one or more separate servicing functions hereunder with respect to the Non-Designated
Mortgage Loans to any Subcontractor unless that Subcontractor first agrees in writing with such Servicer to deliver an Assessment of
Compliance and an Accountant's Attestation in such manner and at such times that permits that Servicer to comply with Sections 13.07
and 13.08 of this Agreement.
Each Servicer may in connection with its duties as Servicer hereunder enter into transactions with any of its
Affiliates relating to the Non-Designated Mortgage Loans; provided that (a) such Servicer acts (i) in accordance with Accepted
Servicing Practices and the terms of this Agreement, and (ii) in the ordinary course of business of such Servicer; and (b) the terms
of such transaction are no less favorable to such Servicer than it would obtain in a comparable arm's-length transaction with a
Person that is not an Affiliate of such Servicer. Notwithstanding the preceding sentence, any such transaction between a Servicer and
any of its Affiliates shall not release such Servicer from any of its obligations hereunder and such Servicer shall remain
responsible hereunder for all acts and omissions of such Affiliate with respect to such Mortgage Loans serviced by it as fully as if
such acts and omissions were those of such Servicer. Any fees and expenses relating to such transaction between such Servicer and
its Affiliate that are not otherwise reimbursable to such Servicer pursuant to this Agreement shall be borne by the parties thereto
and shall not be an expense or fee of the Trust, the Depositor, the Trustee, the Trust Administrator, the Seller or the Master
Servicer.
(b) With respect to any Non-Designated Mortgage Loans, at the cost and expense of a Servicer, without any right of reimbursement
from the Depositor, the Trustee, the Trust Administrator or the applicable Collection Account, such Servicer shall be entitled to
terminate the rights and responsibilities of its Sub-Servicer and arrange for any servicing responsibilities to be performed by a
successor Sub-Servicer meeting the requirements set forth in Section 3.02(a), provided, however, that nothing contained herein shall
be deemed to prevent or prohibit such Servicer, at such Servicer's option, from electing to service the related Non-Designated
Mortgage Loans itself. In the event that a Servicer's responsibilities and duties under this Agreement are terminated pursuant to
Section 8.01, and if requested to do so by the Trustee or Trust Administrator or such Servicer shall, at its own cost and expense
terminate the rights and responsibilities of its Sub-Servicer as soon as is reasonably possible. Each Servicer shall pay all fees,
expenses or penalties necessary in order to terminate the rights and responsibilities of its Sub-Servicer from such Servicer's own
funds without any right of reimbursement from the Depositor, Trustee, Trust Administrator, or the applicable Collection Account.
(c) Notwithstanding any of the provisions of this Agreement relating to agreements or arrangements between a Servicer and its
Sub-Servicer or a Servicer and its Outsourcer, or any reference herein to actions taken through the Sub-Servicer, the Outsourcer, or
otherwise, the related Servicer shall not be relieved of its obligations to the Depositor, the Trust, Trustee, the Trust
Administrator or Certificateholders and shall be obligated to the same extent and under the same terms and conditions as if it alone
were servicing and administering the related Non-Designated Mortgage Loans. Each Servicer shall be entitled to enter into an
agreement with its Sub-Servicer and Outsourcer for indemnification of such Servicer by such Sub-Servicer or Outsourcer, as
applicable, and nothing contained in this Agreement shall be deemed to limit or modify such indemnification.
For purposes of this Agreement, a Servicer shall be deemed to have received any collections, recoveries or payments
with respect to the related Non-Designated Mortgage Loans that are received by a related Sub-Servicer regardless of whether such
payments are remitted by the Sub-Servicer to such Servicer.
Any Subservicing Agreement and any other transactions or services relating to the Non-Designated Mortgage Loans
involving a Sub-Servicer shall be deemed to be between the Sub-Servicer, and the related Servicer alone, and the Depositor, the
Trustee, the Trust Administrator, the Master Servicer, the other Servicers and the Special Servicer shall have no obligations, duties
or liabilities with respect to a Sub-Servicer including no obligation, duty or liability of the Depositor, Trustee, the Trust
Administrator, the Master Servicer, the Special Servicer or other Servicers to pay a Sub-Servicer's fees and expenses.
(d) Each Servicer is hereby authorized to enter into a financing or other facility (any such arrangement, a "Facility") under
which (i) such Servicer assigns or pledges to another person (a "Lender") (A) such Servicer's rights under this Agreement to be
reimbursed for any Advances or Servicing Advances, and (B) any and all rights of such Servicer under this Agreement resulting from
such Servicer's performance of its obligations under this Agreement, including, without limitation, any Servicing Fees, interest
income, Ancillary Income, and other payments received by such Servicer for servicing the Mortgage Loans related thereto and (ii) the
Lender agrees to fund some or all Advances and/or Servicing Advances required to be made by such Servicer pursuant to this
Agreement. No consent of the Trustee, Trust Administrator, Master Servicer, Certificateholders, Rating Agency or any other party is
required before such Servicer may enter into a Facility; provided, however, that the consent of the Trust Administrator shall be
required before such Servicer may cause to be outstanding at one time more than one Facility. Notwithstanding the existence of any
Facility, such Servicer shall remain obligated pursuant to this Agreement to make Advances and Servicing Advances pursuant to and as
required by this Agreement, and to perform all duties and obligations of such Servicer under this Agreement and shall not be relieved
of such obligations by virtue of such Facility.
SECTION 3.03. Master Servicing by Master Servicer.
For and on behalf of the Certificateholders, the Master Servicer shall oversee and enforce the obligation of Xxxxx
Fargo and SPS to service and administer the Xxxxx Fargo Serviced Mortgage Loans and SPS Serviced Mortgage Loans, respectively, 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 this Agreement and with customary and usual standards of practice of prudent
mortgage loan master servicers. Furthermore, the Master Servicer shall oversee and consult with the Servicers as 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 Servicers and shall cause each Servicer to perform and observe the covenants,
obligations and conditions to be performed or observed by such Servicer under this Agreement.
With respect to any Distribution Date, no later than the related Cash Remittance Date, the Master Servicer shall
remit to the Trust Administrator for deposit in the Certificate Account the amount of the Compensating Interest Payment for the
Master Servicer, with respect to the Xxxxx Fargo Serviced Mortgage Loans, SPS Serviced Mortgage Loans and the Designated Mortgage
Loans, for the related Prepayment Period to the extent Xxxxx Fargo, SPS or the related Designated Servicer default in their
obligation to make such Compensating Interest Payment pursuant to Section 3.05. The aggregate of such deposits shall be made from
the Master Servicer's own funds, without reimbursement therefor.
SECTION 3.04. Trustee to Act as Master Servicer or Servicer.
In the event that (A) the Master Servicer shall for any reason no longer be Master Servicer hereunder or (B) any
Servicer shall for any reason no longer be a Servicer hereunder and, with respect to any Servicer, the Master Servicer shall for any
reason no longer be Master Servicer hereunder (including, in each case, by reason of an Event of Default), the Trustee or its
successor shall thereupon assume all of the rights and obligations of the Master Servicer or such Servicer hereunder arising
thereafter (except that the Trustee shall not be (i) liable for losses of the Master Servicer or such Servicer pursuant to
Section 3.09 hereof or any acts or omissions of the related predecessor of the Master Servicer or such Servicer hereunder,
(ii) obligated to make Advances if it is prohibited from doing so by applicable law, (iii) obligated to effectuate repurchases or
substitutions of Mortgage Loans hereunder including, but not limited to, repurchases or substitutions of Mortgage Loans pursuant to
Section 2.02 or 2.03 hereof or (iv) deemed to have made any representations and warranties of the Master Servicer or such Servicer
hereunder); (v) be obligated to perform any obligation of the Master Servicer or such Servicer under Section 13.06 or Section 13.08
with respect to any period of time during which the Trustee was not acting as the Master Servicer or Servicer). Any such assumption
shall be subject to Section 8.02 hereof. Notwithstanding the foregoing, if the Trustee has become the successor to the Master
Servicer or a Servicer hereunder, the Trustee may, if it shall be unwilling to so act, or shall, if it is unable to so act, appoint,
or petition a court of competent jurisdiction to appoint, any established mortgage loan servicing institution, the appointment of
which does not adversely affect the then-current rating of the Certificates, as the successor to the Master Servicer or a Servicer
hereunder in the assumption of all or any part of the responsibilities, duties or liabilities of the Master Servicer or such
Servicer, as applicable, provided that such successor to the Master Servicer or such Servicer, as applicable, shall not be deemed to
have made any representation or warranty as to any Mortgage Loan made by the Master Servicer or such Servicer, as applicable.
Each Servicer shall, upon request of the Trust Administrator, but at the expense of such Servicer, deliver to the
assuming party all documents and records relating to each Subservicing Agreement or substitute Subservicing Agreement and the
Mortgage Loans then being serviced thereunder and hereunder by such Servicer and an accounting of amounts collected or held by it and
otherwise use its best efforts to effect the orderly and efficient transfer of the Subservicing Agreement or substitute Subservicing
Agreement to the assuming party.
SECTION 3.05. Collection of Mortgage Loans; Collection Accounts; Certificate Account.
(a) Continuously from the date hereof until the principal and interest on all Non-Designated Mortgage Loans have been paid in
full or such Non-Designated Mortgage Loans have become Liquidated Mortgage Loans, each Servicer shall proceed in accordance with
Accepted Servicing Practices to collect all payments due under each of the related Non-Designated Mortgage Loans when the same shall
become due and payable to the extent consistent with this Agreement and the terms and provisions of any related Mortgage Guaranty
Insurance Policy and shall take special care with respect to the Non-Designated Mortgage Loans for which a Servicer collects escrow
payments in ascertaining and estimating Escrow Payments and all other charges that will become due and payable with respect to the
Non-Designated Mortgage Loans and the related Mortgaged Properties, to the end that the installments payable by the related Mortgagors
will be sufficient to pay such charges as and when they become due and payable. Consistent with the foregoing, in connection with
Non-Designated Mortgage Loans which it is directly servicing, each Servicer may in its discretion (i) waive any late payment charge or
any prepayment charge or penalty interest in connection with the prepayment of a Non-Designated Mortgage Loan and (ii) extend the Due
Dates for payments due on a Mortgage Note for a period not greater than 180 days; provided, however, that no such Servicer can extend
the maturity of any such Non-Designated Mortgage Loan past the date on which the final payment is due on the latest maturing Mortgage
Loan as of the Cut-off Date. In the event of any such arrangement, the related Servicer shall make Advances on the related
Non-Designated Mortgage Loans in accordance with the provisions of Section 5.01 during the scheduled period in accordance with the
amortization schedule of such Mortgage Loan without modification thereof by reason of such arrangements. No Servicer shall be
required to institute or join in litigation with respect to collection of any payment (whether under a Mortgage, Mortgage Note or
otherwise or against any public or governmental authority with respect to a taking or condemnation) if it reasonably believes that
enforcing the provision of the Mortgage or other instrument pursuant to which such payment is required is prohibited by applicable
law.
(b) Each Servicer shall segregate and hold all funds collected and received pursuant to a Non-Designated Mortgage Loan separate
and apart from any of its own funds and general assets and shall establish and maintain one or more Collection Accounts, in the form
of time deposit or demand accounts, titled "[Servicer's name], in trust for the Holders of Adjustable Rate Mortgage Trust 2006-1,
Adjustable Rate Mortgage-Backed Pass-Through Certificates, Series 2006-1" or, if established and maintained by a Sub-Servicer on
behalf of a Servicer, "[Sub-Servicer's name], in trust for [Servicer's name]" or "[Sub-Servicer's name], as agent, trustee and/or
bailee of principal and interest custodial account for [Servicer's name], its successors and assigns, for various owners of interest
in [Servicer's name] mortgage-backed pools. In the event that a Sub-Servicer employs a Sub-Servicer, the Collection Account shall be
titled "[name of Sub-Servicer's Sub-Servicer], in trust for [Sub-Servicer's name]." Each Collection Account maintained by each
Servicer (other than Xxxxx Fargo), shall be an Eligible Account acceptable to the Depositor and the Trust Administrator. Each
Collection Account maintained by Xxxxx Fargo shall be an Eligible Account. Funds deposited in a Collection Account may be drawn on
by the related Servicer in accordance with Section 3.08. Any funds deposited in a Collection Account shall either be invested in
Eligible Investments or at all times be fully insured to the full extent permitted under applicable law.
(c) Each Servicer shall deposit in the applicable Collection Account on a daily basis (with respect to SPS, within two Business
Days of receipt), unless otherwise indicated, and retain therein, the following collections remitted by Sub-Servicers or payments
received by such Servicer and payments made by such Servicer subsequent to the Cut-off Date, other than payments of principal and
interest due on or before the Cut-off Date:
(i) all payments on account of principal on the related Non-Designated Mortgage Loans, including all Principal Prepayments;
(ii) all payments on account of interest on the related Non-Designated Mortgage Loans adjusted to the per annum rate equal to the
Mortgage Rate reduced by the sum of the related Expense Fee Rate, as applicable;
(iii) all Liquidation Proceeds on the related Non-Designated Mortgage Loans;
(iv) all Insurance Proceeds on the related Non-Designated Mortgage Loans including amounts required to be deposited pursuant to
Section 3.09 (other than proceeds to be held in the Escrow Account and applied to the restoration or repair of the Mortgaged
Property or released to the Mortgagor in accordance with Section 3.09);
(v) all Advances made by such Servicer pursuant to Section 5.01;
(vi) no later than the withdrawal from the Collection Account pursuant to Section 3.08(a)(viii) each month, the applicable amount
of the Compensating Interest Payment for such Servicer for the related Prepayment Period. The aggregate of such deposits
shall be made from such Servicer's own funds, without reimbursement therefor;
(vii) any amounts required to be deposited by such Servicer in respect of net monthly income from REO Property related to any
Non-Designated Mortgage Loan pursuant to Section 3.11;
(viii) all Assigned Prepayment Premiums, if applicable; and
(ix) any other amounts required to be deposited hereunder.
The foregoing requirements for deposit into each Collection Account shall be exclusive, it being understood and
agreed that, without limiting the generality of the foregoing, with respect to the Non-Designated Mortgage Loans, Ancillary Income
need not be deposited by such Servicer into such Collection Account. In addition, notwithstanding the provisions of this
Section 3.05, each Servicer may deduct from amounts received by it, prior to deposit into the applicable Collection Account, any
portion of any Scheduled Payment representing (i) the applicable Servicing Fee and any other amounts owed to such Servicer pursuant
to Section 3.14 and (ii) with respect to each Non-Designated Mortgage Loan covered by a Lender Paid Mortgage Guaranty Insurance
Policy, any amounts required to effect timely payment of the premiums on such Mortgage Guaranty Insurance Policy pursuant to
Section 3.09(c). In the event that a Servicer shall remit any amount not required to be remitted, it may at any time withdraw or
direct the institution maintaining the related Collection Account to withdraw such amount from such Collection Account, any provision
herein to the contrary notwithstanding. Such withdrawal or direction may be accomplished by delivering written notice thereof to the
Trustee or such other institution maintaining such Collection Account which describes the amounts deposited in error in such
Collection Account. Each Servicer shall maintain adequate records with respect to all withdrawals made by it pursuant to this
Section. All funds deposited in a Collection Account shall be held in trust for the Certificateholders until withdrawn in accordance
with Section 3.08(a).
(d) On or prior to the Closing Date, the Trust Administrator shall establish and maintain, on behalf of the Certificateholders,
the Certificate Account. The Trust Administrator shall, promptly upon receipt, deposit in the Certificate Account and retain
therein the following:
(i) the aggregate amount remitted by each Servicer of Non-Designated Mortgage Loans to the Trust Administrator pursuant to
Section 3.08(a)(viii) and (x) and the aggregate amount remitted by each Designated Servicer to the Master Servicer or Trust
Administrator pursuant to their respective Designated Servicing Agreements, in each case including any Assigned Prepayment
Premiums;
(ii) any amount deposited by the Trust Administrator pursuant to Section 3.05(e) in connection with any losses on Eligible
Investments;
(iii) all Compensating Interest Payments remitted by the Master Servicer to the Trust Administrator pursuant to Section 3.03 and
Section 3.20(b);
(iv) all Advances remitted by the Master Servicer to the Trust Administrator pursuant to Section 5.01 and Section 3.20(b); and
(v) any other amounts deposited hereunder which are required to be deposited in the Certificate Account.
In the event that the Master Servicer or a Servicer shall remit to the Trust Administrator any amount not required
to be remitted, the Master Servicer or such Servicer, as applicable, may at any time direct the Trust Administrator to withdraw such
amount from the Certificate Account, any provision herein to the contrary notwithstanding. Such direction may be accomplished by
delivering an Officer's Certificate to the Trust Administrator which describes the amounts deposited in error in the Certificate
Account. All funds deposited in the Certificate Account shall be held by the Trust Administrator in trust for the Certificateholders
until disbursed in accordance with this Agreement or withdrawn in accordance with Section 3.08(b). In no event shall the Trust
Administrator incur liability for withdrawals from the Certificate Account at the direction of the Master Servicer or any Servicer.
(e) Each institution at which a Collection Account or the Certificate Account is maintained shall either hold such funds on
deposit uninvested or shall invest the funds therein as directed in writing by the related Servicer, the Trust Administrator or the
Depositor, respectively, in Eligible Investments, which shall mature not later than (i) in the case of a Collection Account, the Cash
Remittance Date and (ii) in the case of the Certificate Account, the Business Day immediately preceding the Distribution Date, or on
the Distribution Date, with respect to Eligible Investments invested with an affiliate of the Trust Administrator. All income and
gain net of any losses realized from any such balances or investment of funds on deposit in a Collection Account shall be for the
benefit of the related Servicer as servicing compensation and shall be remitted to it monthly as provided herein. The amount of any
realized losses in a Collection Account incurred in any such account in respect of any such investments shall promptly be deposited
by the related Servicer (from its own funds) in the related Collection Account. Neither the Trustee nor the Trust Administrator
shall be liable for the amount of any loss incurred in respect of any investment or lack of investment of funds held in a Collection
Account and made in accordance with this Section 3.05. All income and gain net of any losses realized from any such investment of
funds on deposit in the Certificate Account shall be for the benefit of the Trust Administrator as compensation and shall be remitted
to it monthly as provided herein. The amount of any realized losses in the Certificate Account incurred in any such account in
respect of any such investments shall promptly be deposited by the Trust Administrator (from its own funds) in the Certificate
Account.
(f) Each Servicer, other than Xxxxx Fargo, shall give notice to the Trustee, the Trust Administrator, the Seller, each Rating
Agency, and the Depositor of any proposed change of the location of the related Collection Account prior to any change thereof.
Xxxxx Fargo shall give notice to the Depositor of any proposed change of the location of the related Collection Account prior to any
change thereof and, upon receipt of such notice, the Depositor shall give notice to the Trustee, the Trust Administrator, the Seller
and each Rating Agency. The Trust Administrator shall give notice to the Master Servicer and each Servicer, the Seller, each Rating
Agency, the Trustee and the Depositor of any proposed change of the location of the Certificate Account prior to any change thereof.
(g) [Reserved]
(h) [Reserved]
SECTION 3.06. Establishment of and Deposits to Escrow Accounts; Permitted Withdrawals from Escrow Accounts; Payments of Taxes,
Insurance and Other Charges.
(a) To the extent required by the related Mortgage Note and not violative of applicable law, the applicable Servicer shall
segregate and hold all funds collected and received pursuant to a Non-Designated Mortgage Loan constituting Escrow Payments separate
and apart from any of its own funds and general assets and shall establish and maintain one or more Escrow Accounts, in the form of
time deposit or demand accounts, titled, in the case of Servicers other than SPS and Xxxxx Fargo, "Adjustable Rate Mortgage Trust
2006-1, Adjustable Rate Mortgage-Backed Pass-Through Certificates, Series 2006-1," in the case of Xxxxx Fargo, "Xxxxx Fargo Bank,
N.A., as Servicer for Adjustable Rate Mortgage Trust 2006-1, Adjustable Rate Mortgage-Backed Pass-Through Certificates, Series
2006-1," in the case of SPS, "Select Portfolio Servicing, Inc., as Servicer for Adjustable Rate Mortgage Trust 2006-1, Adjustable
Rate Mortgage-Backed Pass-Through Certificates, Series 2006-1," or, if established and maintained by a Sub-Servicer on behalf of a
Servicer, "[Sub-Servicer's name], in trust for [Servicer's name]" or "[Sub-Servicer's name], as agent, trustee and/or bailee of taxes
and insurance custodial account for [Servicer's name], its successors and assigns, for various owners of interest in [Servicer's
name] mortgage backed pools. In the event that a Sub-Servicer employs a sub-servicer, the Escrow Accounts shall be titled "[name of
Sub-Servicer's sub-servicer] in trust for [Sub-Servicer's name]. The Escrow Accounts shall be Eligible Accounts. Funds deposited in
the Escrow Account may be drawn on by the related Servicer in accordance with Section 3.06(d).
(b) Each Servicer shall deposit or cause to be deposited in its Escrow Account or Accounts on a daily basis within two Business
Days of receipt and retain therein:
(i) all Escrow Payments collected on account of the related Non-Designated Mortgage Loans, for the purpose of effecting timely
payment of any such items as required under the terms of this Agreement; and
(ii) all amounts representing Insurance Proceeds which are to be applied to the restoration or repair of any Mortgaged Property
related to a Non-Designated Mortgage Loan.
(c) Each Servicer shall make withdrawals from the Escrow Account only to effect such payments as are required under this
Agreement, as set forth in Section 3.06(d). Each Servicer shall be entitled to retain any interest paid on funds deposited in the
related Escrow Account by the depository institution, other than interest on escrowed funds required by law to be paid to the
Mortgagor. To the extent required by law, the applicable Servicer shall pay interest on escrowed funds to the Mortgagor
notwithstanding that the Escrow Account may be non interest bearing or that interest paid thereon is insufficient for such purposes.
(d) Withdrawals from the Escrow Account or Accounts may be made or caused to be made by the related Servicer only:
(i) to effect timely payments of ground rents, taxes, assessments, water rates, mortgage insurance premiums, condominium
charges, fire and hazard insurance premiums or other items constituting Escrow Payments for the related Mortgage;
(ii) to reimburse such Servicer for any Servicing Advances made by the such Servicer with respect to a related Non-Designated
Mortgage Loan, but only from amounts received on the related Non-Designated Mortgage Loan which represent late collections
of Escrow Payments thereunder;
(iii) to refund to any Mortgagor any funds found to be in excess of the amounts required under the terms of the related
Non-Designated Mortgage Loan;
(iv) for transfer to the related Collection Account to reduce the principal balance of the related Non-Designated Mortgage Loan
in accordance with the terms of the related Mortgage and Mortgage Note;
(v) for application to restore or repair of the Mortgaged Property related to a Non-Designated Mortgage Loan in accordance with
the procedures outlined in Section 3.09(e);
(vi) to pay to the related Servicer, or any Mortgagor related to a Non-Designated Mortgage Loan to the extent required by law,
any interest paid on the funds deposited in such Escrow Account;
(vii) to clear and terminate such Escrow Account on the termination of this Agreement; and
(viii) to remove funds inadvertently placed in the Escrow account by the related Servicer.
(e) With respect to each Non-Designated Mortgage Loan, the applicable Servicer shall maintain accurate records reflecting the
status of ground rents and taxes and any other item which may become a lien senior to the lien of the related Mortgage and the status
of Mortgage Guaranty Insurance Policy premiums, and fire and hazard insurance coverage and shall obtain, from time to time, all bills
for the payment of such charges (including renewal premiums) and shall effect or cause to be effected payment thereof prior to the
applicable penalty or termination date.
SECTION 3.07.
Access to Certain Documentation and Information Regarding the Non-Designated Mortgage Loans; Inspections.
(a) The Master Servicer and each Servicer shall afford the Depositor, the Trustee and the Trust Administrator reasonable access
to all records and documentation regarding the Non-Designated Mortgage Loans and all accounts, insurance information and other
matters relating to this Agreement, such access being afforded without charge, but only upon reasonable written request and during
normal business hours at the office designated by the Master Servicer or such Servicer. In addition, each Servicer shall afford the
Master Servicer reasonable access to all records and documentation regarding the Non-Designated Mortgage Loans and all accounts,
insurance information and other matters relating to this Agreement, such access being afforded without charge, but only upon
reasonable written request and during normal business hours at the office designated by such Servicer. In addition, each Servicer
shall provide to the Special Servicer reasonable access to all records and documentation regarding the Non-Designated Mortgage Loans
serviced by it that become Special Serviced Mortgage Loans.
(b) Each Servicer, separately with respect to the Non-Designated Mortgage Loans each directly services, shall inspect the
related Mortgaged Properties as often as deemed necessary by such Servicer in such party's sole discretion, to assure itself that the
value of such Mortgaged Property is being preserved. In addition, if any Non-Designated Mortgage Loan is more than 60 days
delinquent, such Servicer, as applicable, shall conduct subsequent inspections in accordance with Accepted Servicing Practices or as
may be required by the primary mortgage guaranty insurer. Each Servicer shall keep a written or electronic report of each such
inspection.
SECTION 3.08. Permitted Withdrawals from the Collection Accounts and Certificate Account.
(a) Each Servicer may from time to time make withdrawals from the related Collection Account for the following purposes:
(i) to pay to such Servicer (to the extent not previously retained by such Servicer) the servicing compensation to which it is
entitled pursuant to Section 3.14, and to pay to such Servicer, as additional servicing compensation, earnings on or
investment income with respect to funds in or credited to such Collection Account, and with respect to Xxxxx Fargo, to pay
(to the extent not previously retained by Xxxxx Fargo) any REO Disposition Fee to which it is entitled pursuant to
Section 3.11(e);
(ii) to reimburse such Servicer for unreimbursed Advances made by it, such right of reimbursement pursuant to this subclause
(ii) being limited to amounts received on the Non-Designated Mortgage Loan(s) in respect of which any such Advance was made
(including without limitation, late recoveries of payments, Liquidation Proceeds and Insurance Proceeds to the extent
received by such Servicer);
(iii) to reimburse such Servicer for any Nonrecoverable Advance previously made or any amount expended pursuant to Section 3.11(a);
(iv) to reimburse such Servicer for (A) unreimbursed Servicing Advances or such Servicer's right to reimbursement pursuant to
this clause (A) with respect to any Non-Designated Mortgage Loan being limited to amounts received on such Non-Designated
Mortgage Loan which represent late payments of principal and/or interest (including, without limitation, Liquidation
Proceeds and Insurance Proceeds with respect to such Mortgage Loan) respecting which any such advance was made and (B) for
unpaid Servicing Fees as provided in Section 3.11 hereof;
(v) to pay to the purchaser, with respect to each Non-Designated Mortgage Loan or property acquired in respect thereof that has
been purchased pursuant to Section 2.02, 2.03 or 3.11, all amounts received thereon after the date of such purchase;
(vi) to make any payments required to be made pursuant to Section 2.07(g);
(vii) to reimburse the Seller, such Servicer or the Depositor for expenses incurred by any of them and reimbursable pursuant to
Section 7.03 hereof;
(viii) to withdraw any amount deposited in such Collection Account and not required to be deposited therein;
(ix) with respect to the Non-Designated Mortgage Loans, on the Cash Remittance Date, to withdraw an amount equal to the portion
of (a) with respect to the Mortgage Loans in Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4 and Loan Group 5, the
Available Distribution Amount and (b) with respect to the Mortgage Loans in Loan Group 6, the Interest Remittance Amount and
Principal Remittance Amount, in each case applicable to the Mortgage Loans serviced by such Servicer, who will remit the
aggregate of such amounts to the Trust Administrator for deposit in the Certificate Account;
(x) with respect to each Non-Designated Mortgage Loan covered by a Lender Paid Mortgage Guaranty Insurance Policy, to effect
timely payment of the related premiums on such Mortgage Guaranty Insurance Policy, as applicable, pursuant to
Section 3.09(c), to the extent not deducted by such Servicer prior to deposit into the applicable Collection Account pursuant
to Section 3.05(c);
(xi) on or prior to 4:00 p.m. New York time on the Cash Remittance Date preceding each Distribution Date, each applicable
Servicer shall withdraw an amount equal to the sum of all Assigned Prepayment Premiums received during the related
Prepayment Period applicable to the Mortgage Loans serviced by such Servicer, and remit such amount to the Trust
Administrator for deposit in the Certificate Account; and
(xii) to clear and terminate such Collection Account upon termination of this Agreement pursuant to Section 11.01 hereof.
Each Servicer shall keep and maintain separate accounting, on a Non-Designated Mortgage Loan by Mortgage Loan basis,
for the purpose of justifying any withdrawal from the related Collection Account pursuant to such subclauses (i), (ii), (iv) and
(v). Prior to making any withdrawal from a Collection Account pursuant to subclause (iii) for reimbursement of a Nonrecoverable
Advance, the related Servicer shall deliver to the Trust Administrator a certificate of a Servicing Officer indicating the amount of
any previous Advance or Servicing Advance determined by such Servicer to be a Nonrecoverable Advance and identifying the related
Non-Designated Mortgage Loans(s), and their respective portions of such Nonrecoverable Advance. In connection with the payment of a
Purchase Price, if a Servicer is not required to remit unreimbursed Advances and Servicing Advances as specified in the definition of
Purchase Price, such Servicer shall be deemed to have been reimbursed for such amount.
(b) The Trust Administrator shall withdraw funds from the Certificate Account for distributions to Certificateholders, in the
manner specified in this Agreement (and to withhold from the amounts so withdrawn, the amount of any taxes that it is authorized to
withhold pursuant to Section 2.07). In addition, the Trust Administrator may from time to time make withdrawals from the Certificate
Account for the following purposes:
(i) to pay to itself any investment income earned for the related Distribution Date, and to pay to itself or the Master Servicer
any other amounts to which it or the Master Servicer is entitled to reimbursement or payment under the terms of this
Agreement;
(ii) to withdraw and return to the Master Servicer or the applicable Servicer for deposit to the applicable Collection Account
any amount deposited in the Certificate Account and not required to be deposited therein; and
(iii) to clear and terminate the Certificate Account upon termination of the Agreement pursuant to Section 11.01 hereof.
SECTION 3.09. Maintenance of Hazard Insurance; Mortgage Impairment Insurance and Mortgage Guaranty Insurance Policy; Claims;
Restoration of Mortgaged Property.
(a) Each Servicer shall cause to be maintained for each related Non-Designated Mortgage Loan hazard insurance such that all
buildings upon the related Mortgaged Property are insured by a generally acceptable insurer rated either: "V" or better in the
current Best's Key Rating Guide ("Best's") or acceptable to FNMA or FHLMC against loss by fire, hazards of extended coverage and such
other hazards as are customary in the area where the related Mortgaged Property is located, in an amount which is at least equal to
the lesser of (i) the replacement value of the improvements securing such Non-Designated Mortgage Loan and (ii) the greater of (A)
the outstanding principal balance of such Non-Designated Mortgage Loan and (B) an amount such that the proceeds of such policy shall
be sufficient to prevent the Mortgagor and/or the mortgagee from becoming a co insurer.
If upon origination of the Non-Designated Mortgage Loan, the related Mortgaged Property was located in an area
identified in the Federal Register by the Federal Emergency Management Agency as having special flood hazards (and such flood
insurance has been made available), the related Servicer shall cause a flood insurance policy to be maintained with respect to such
Non-Designated Mortgage Loan. Such policy shall meet the requirements of the current guidelines of the Federal Insurance
Administration and be in an amount representing coverage equal to the lesser of (i) the minimum amount required, under the terms of
coverage, to compensate for any damage or loss on a replacement cost basis (or the unpaid principal balance of the mortgage if
replacement cost coverage is not available for the type of building insured) and (ii) the maximum amount of insurance which is
available under the Flood Disaster Protection Act of 1973, as amended.
If a Mortgage related to a Non-Designated Mortgage Loan is secured by a unit in a condominium project, the related
Servicer shall verify that the coverage required of the owner's association, including hazard, flood, liability, and fidelity
coverage, is being maintained in accordance with the requirements of the related Servicer for mortgage loans that it services on its
own account.
Each Servicer shall cause to be maintained on each Mortgaged Property related to a Non-Designated Mortgage Loan such
other additional special hazard insurance as may be required pursuant to such applicable laws and regulations as shall at any time be
in force and as shall require such additional insurance, or pursuant to the requirements of any Mortgage Guaranty Insurance Policy
insurer, or as may be required to conform with Accepted Servicing Practices to the extent permitted by the Mortgage Note, the
Mortgage or applicable law provided that the related Servicer shall not be required to bear the cost of such insurance.
All policies required hereunder shall name the related Servicer as loss payee and shall be endorsed with standard or
union mortgagee clauses, without contribution, which shall provide for prior written notice of any cancellation, reduction in amount
or material change in coverage.
Each Servicer shall not interfere with the Mortgagor's freedom of choice at the origination of such Non-Designated
Mortgage Loan in selecting either his insurance carrier or agent, provided, however, that such Servicer shall not accept any such
insurance policies from insurance companies unless such companies are rated: B:III or better in Best's or acceptable to FNMA or FHLMC
and are licensed to do business in the jurisdiction in which the Mortgaged Property is located. The related Servicer shall determine
that such policies provide sufficient risk coverage and amounts, that they insure the property owner, and that they properly describe
the property address.
Pursuant to Section 3.05, any amounts collected by a Servicer under any such policies (other than amounts to be
deposited in the related Escrow Account and applied to the restoration or repair of the related Mortgaged Property, or property
acquired in liquidation of the Non-Designated Mortgage Loan, or to be released to the Mortgagor, in accordance with such Servicer's
normal servicing procedures) shall be deposited in the related Collection Account (subject to withdrawal pursuant to Section 3.08(a)).
Any cost incurred by a Servicer in maintaining any such insurance shall not, for the purpose of calculating monthly
distributions to the Certificateholders or remittances to the Trust Administrator for their benefit, be added to the principal
balance of the Non-Designated Mortgage Loan, notwithstanding that the terms of the Non-Designated Mortgage Loan so permit. Such
costs shall constitute a Servicing Advance and will be reimbursable to the related Servicer to the extent permitted by Section 3.08
hereof. It is understood and agreed that no earthquake or other additional insurance is to be required of any Mortgagor related to a
Non-Designated Mortgage Loan or maintained on property acquired in respect of a Mortgage related to a Non-Designated Mortgage Loan
other than pursuant to such applicable laws and regulations as shall at any time be in force and as shall require such additional
insurance.
(b) In the event that a Servicer shall obtain and maintain a blanket policy insuring against losses arising from fire and
hazards covered under extended coverage on all of the related Non-Designated Mortgage Loans, then, to the extent such policy provides
coverage in an amount equal to the amount required pursuant to Section 3.09(a) and otherwise complies with all other requirements of
Section 3.09(a), it shall conclusively be deemed to have satisfied its obligations as set forth in Section 3.09(a). Any amounts
collected by a Servicer under any such policy relating to a Non-Designated Mortgage Loan shall be deposited in the related Collection
Account subject to withdrawal pursuant to Section 3.08(a). Such policy may contain a deductible clause, in which case, in the event
that there shall not have been maintained on the related Mortgaged Property a policy complying with Section 3.09(a), and there shall
have been a loss which would have been covered by such policy, the related Servicer shall deposit in the related Collection Account
at the time of such loss the amount not otherwise payable under the blanket policy because of such deductible clause, such amount to
be deposited from such Servicer's funds, without reimbursement therefor. Upon request of the Trust Administrator, a Servicer shall
cause to be delivered to the Trust Administrator a certified true copy of such policy and a statement from the insurer thereunder
that such policy shall in no event be terminated or materially modified without 30 days' prior written notice to the Trust
Administrator. In connection with its activities as Servicer of the related Non-Designated Mortgage Loans, such Servicer agrees to
present, on behalf of itself, the Depositor, and the Trust Administrator for the benefit of the Certificateholders, claims under any
such blanket policy.
(c) With respect to each Non-Designated Mortgage Loan with a Loan-to-Value Ratio in excess of 80% which the Seller represented
to be covered by a Mortgage Guaranty Insurance Policy as of the Cut-off Date, the related Servicer shall, without any cost to the
Depositor or Trust Administrator, maintain or cause the Mortgagor to maintain in full force and effect a Mortgage Guaranty Insurance
Policy insuring that portion of the Non-Designated Mortgage Loan in excess of 75% of value, and shall pay or shall cause the
Mortgagor to pay, the premium thereon on a timely basis, until the loan-to-value ratio of such Non-Designated Mortgage Loan is
reduced to 80%, based on either (i) a current appraisal of the Mortgaged Property or (ii) the appraisal of the Mortgaged Property
obtained at the time the Non-Designated Mortgage Loan was originated. In the event that such Mortgage Guaranty Insurance Policy shall
be terminated prior to the loan-to-value ratio of such Non-Designated Mortgage Loan being reduced to 80%, the related Servicer shall
obtain from another Qualified Insurer a comparable replacement policy, with a total coverage equal to the remaining coverage of such
terminated Mortgage Guaranty Insurance Policy. If the insurer shall cease to be a Qualified Insurer, the related Servicer shall
determine whether recoveries under the Mortgage Guaranty Insurance Policy are jeopardized for reasons related to the financial
condition of such insurer, it being understood that such Servicer shall in no event have any responsibility or liability for any
failure to recover under the Mortgage Guaranty Insurance Policy for such reason. If the related Servicer determines that recoveries
are so jeopardized, it shall notify the Mortgagor, if required, and obtain from another Qualified Insurer a replacement insurance
policy. The related Servicer shall not take any action which would result in noncoverage under any applicable Mortgage Guaranty
Insurance Policy of any loss which, but for the actions of such Servicer would have been covered thereunder. In connection with any
assumption or substitution agreement entered into or to be entered into pursuant to Section 3.10, each Servicer shall promptly notify
the insurer under the related Mortgage Guaranty Insurance Policy, if any, of such assumption or substitution of liability in
accordance with the terms of such Mortgage Guaranty Insurance Policy and shall take all actions which may be required by such insurer
as a condition to the continuation of coverage under such Mortgage Guaranty Insurance Policy, provided that such required actions are
in compliance with all applicable law. If such Mortgage Guaranty Insurance Policy is terminated as a result of such assumption or
substitution of liability, the related Servicer shall obtain a replacement Mortgage Guaranty Insurance Policy as provided above;
provided that under applicable law and the terms of the related Mortgage Note and Mortgage the cost of such policy may be charged to
the successor Mortgagor.
With respect to each Non-Designated Mortgage Loan covered by a Lender Paid Mortgage Guaranty Insurance Policy, the
applicable Servicer shall effect timely payment of the premiums on such Mortgage Guaranty Insurance Policy from amounts on deposit in
the Collection Account, or deducted by such Servicer prior to deposit into the applicable Collection Account pursuant to
Section 3.05(c) with respect to such Non-Designated Mortgage Loan. If amounts on deposit in the Collection Account, or deducted by
such Servicer prior to deposit into the applicable Collection Account pursuant to Section 3.05(c) with respect to such Non-Designated
Mortgage Loan are not sufficient to pay the premiums on such Mortgage Guaranty Insurance Policy, the applicable Servicer shall effect
timely payment of such premiums, and such costs shall be recoverable by such Servicer from the related Liquidation Proceeds or
otherwise as a Servicing Advance pursuant to Section 3.08(a). With respect to each Non-Designated Mortgage Loan covered by a
Mortgage Guaranty Insurance Policy that is not a Lender Paid Mortgage Guaranty Insurance Policy, the applicable Servicer shall effect
timely payment of the premiums on such Mortgage Guaranty Insurance Policy, and such costs not otherwise recoverable from the
Mortgagor shall be recoverable by such Servicer from the related Liquidation Proceeds or otherwise as a Servicing Advance pursuant to
Section 3.08(a).
(d) In connection with its activities as servicer, each Servicer shall prepare and present, on behalf of itself, the Depositor,
the Trust, the Trustee, the Trust Administrator and the Certificateholders, claims to the insurer under any Mortgage Guaranty
Insurance Policy related to a Non-Designated Mortgage Loan in a timely fashion in accordance with the terms of such Mortgage Guaranty
Insurance Policy and, in this regard, to take such reasonable action as shall be necessary to permit recovery under any Mortgage
Guaranty Insurance Policy respecting defaulted Non-Designated Mortgage Loans. Pursuant to Section 3.05, any amounts collected by a
Servicer under any Mortgage Guaranty Insurance Policy shall be deposited in the related Collection Account, subject to withdrawal
pursuant to Section 3.08.
(e) With respect to any Non-Designated Mortgage Loan, each Servicer need not obtain the approval of the Trustee or the Trust
Administrator prior to releasing any Insurance Proceeds to the related Mortgagor to be applied to the restoration or repair of the
related Mortgaged Property if such release is in accordance with Accepted Servicing Practices. At a minimum, each Servicer shall
comply with the following conditions in connection with any such release of Insurance Proceeds:
(i) such Servicer shall receive satisfactory independent verification of completion of repairs and issuance of any required
approvals with respect thereto;
(ii) such Servicer shall take all steps necessary to preserve the priority of the lien of the Mortgage, including, but not
limited to requiring waivers with respect to mechanics' and materialmen's liens; and
(iii) pending repairs or restoration, such Servicer shall place the Insurance Proceeds in the related Escrow Account.
(f) With respect to any Non-Designated Mortgage Loan, if the Trust Administrator is named as an additional loss payee, the
related Servicer is hereby empowered to endorse any loss draft issued in respect of such a claim in the name of the Trustee or the
Trust Administrator.
SECTION 3.10. Enforcement of Due on Sale Clauses; Assumption Agreements.
(a) With respect to any Non-Designated Mortgage Loan, each Servicer shall use its best efforts to enforce any "due-on-sale"
provision contained in any related Mortgage or Mortgage Note and to deny assumption by the person to whom the Mortgaged Property has
been or is about to be sold whether by absolute conveyance or by contract of sale, and whether or not the Mortgagor remains liable on
the Mortgage and the Mortgage Note. When the Mortgaged Property has been conveyed by the Mortgagor, the related Servicer shall, to
the extent it has knowledge of such conveyance, exercise its rights to accelerate the maturity of such Non-Designated Mortgage Loan
under the "due-on-sale" clause applicable thereto, provided, however, that such Servicer shall not exercise such rights if prohibited
by law from doing so or if the exercise of such rights would impair or threaten to impair any recovery under the related Mortgage
Guaranty Insurance Policy, if any.
(b) With respect to any Non-Designated Mortgage Loan, if a Servicer reasonably believes it is unable under applicable law to
enforce such "due-on-sale" clause, such Servicer shall enter into (i) an assumption and modification agreement with the person to
whom such property has been conveyed, pursuant to which such person becomes liable under the Mortgage Note and the original Mortgagor
remains liable thereon or (ii) in the event such Servicer is unable under applicable law to require that the original Mortgagor
remain liable under the Mortgage Note, a substitution of liability agreement with the purchaser of the Mortgaged Property pursuant to
which the original Mortgagor is released from liability and the purchaser of the Mortgaged Property is substituted as Mortgagor and
becomes liable under the Mortgage Note. Notwithstanding the foregoing, a Servicer shall not be deemed to be in default under this
Section by reason of any transfer or assumption which such Servicer reasonably believes it is restricted by law from preventing, for
any reason whatsoever. In connection with any such assumption, no material term of the Mortgage Note, including without limitation,
the Mortgage Rate borne by the related Mortgage Note, the term of the Non-Designated Mortgage Loan or the outstanding principal
amount of the Non-Designated Mortgage Loan shall be changed.
(c) To the extent that any Non-Designated Mortgage Loan is assumable, the related Servicer shall inquire diligently into the
creditworthiness of the proposed transferee, and shall use the underwriting criteria for approving the credit of the proposed
transferee which are used by FNMA with respect to underwriting mortgage loans of the same type as the Non-Designated Mortgage Loans.
If the credit of the proposed transferee does not meet such underwriting criteria, the related Servicer diligently shall, to the
extent permitted by the Mortgage or the Mortgage Note and by applicable law, accelerate the maturity of the Non-Designated Mortgage
Loan.
(d) With respect to any Non-Designated Mortgage Loan, subject to each Servicer's duty to enforce any due-on-sale clause to the
extent set forth in this Section 3.10, in any case in which the related Mortgaged Property has been conveyed to a Person by the
related Mortgagor, and such Person is to enter into an assumption agreement or modification agreement or supplement to the Mortgage
Note or Mortgage that requires the signature of the Trustee, or if an instrument of release signed by the Trustee is required
releasing the Mortgagor from liability on the Non-Designated Mortgage Loan, such Servicer shall prepare and deliver or cause to be
prepared and delivered to the Trustee for signature and shall direct, in writing, the Trustee to execute the assumption agreement
with the Person to whom the Mortgaged Property is to be conveyed and such modification agreement or supplement to the Mortgage Note
or Mortgage or other instruments as are reasonable or necessary to carry out the terms of the Mortgage Note or Mortgage or otherwise
to comply with any applicable laws regarding assumptions or the transfer of the Mortgaged Property to such Person. In connection with
any such assumption, no material term of the Mortgage Note may be changed. Together with each such substitution, assumption or other
agreement or instrument delivered to the Trustee for execution by it, the related Servicer shall deliver an Officer's Certificate
signed by a Servicing Officer stating that the requirements of this subsection have been met in connection therewith. The related
Servicer shall notify the Trustee and the Trust Administrator that any such substitution or assumption agreement has been completed
by forwarding to the Trustee and the Trust Administrator a copy of such substitution or assumption agreement, and shall forward the
original to the Custodian which 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. Any fee collected by a Servicer
for entering into an assumption or substitution of liability agreement will be retained by such Servicer as additional servicing
compensation.
SECTION 3.11. Realization Upon Defaulted Mortgage Loans; Repurchase of Certain Mortgage Loans.
(a) Each Servicer shall use reasonable efforts to foreclose upon or otherwise comparably convert the ownership of properties
securing such of the related Non-Designated Mortgage Loans as come into and continue in default and as to which no satisfactory
arrangements can be made for collection of delinquent payments. In connection with such foreclosure or other conversion, each
Servicer shall take such action as (i) such Servicer would take under similar circumstances with respect to a similar mortgage loan
held for its own account for investment, (ii) shall be consistent with Accepted Servicing Practices, (iii) such Servicer shall
determine consistently with Accepted Servicing Practices to be in the best interest of the Trust and Certificateholders, and (iv) is
consistent with the requirements of the insurer under any Required Insurance Policy; provided, however, that such Servicer shall not
be required to expend its own funds in connection with any foreclosure or towards the restoration of any property unless it shall
determine (i) that such restoration and/or foreclosure will increase the proceeds of liquidation of the related Non-Designated
Mortgage Loan after reimbursement to itself of such expenses and (ii) that such expenses will be recoverable to it through
Liquidation Proceeds. Any funds expended by any Servicer pursuant to this Section 3.11(a) shall be reimbursable in full pursuant to
Section 3.08(a)(iii). The related Servicer shall be responsible for all other costs and expenses incurred by it in any such
proceedings; provided, however, that it shall be entitled to reimbursement thereof from the Liquidation Proceeds with respect to the
related Mortgaged Property or otherwise as a Servicing Advance in accordance with Section 3.08(a).
With respect to any Non-Designated Mortgage Loan, notwithstanding anything to the contrary contained in this
Agreement, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the related Servicer has
reasonable cause to believe that the related Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the
Trust Administrator otherwise requests, an environmental inspection or review of such Mortgaged Property conducted by a qualified
inspector shall be arranged for by such Servicer. Upon completion of the inspection, the related Servicer shall promptly provide the
Trust Administrator with a written report of environmental inspection.
In the event the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous
or toxic substances or wastes, the related Servicer shall not proceed with foreclosure or acceptance of a deed in lieu of foreclosure
if the estimated costs of the environmental clean up, as estimated in the environmental inspection report, together with the
Servicing Advances and Advances made by such Servicer and the estimated costs of foreclosure or acceptance of a deed in lieu of
foreclosure exceeds the estimated value of the Mortgaged Property. If however, the aggregate of such clean up and foreclosure costs,
Advances and Servicing Advances are less than or equal to the estimated value of the Mortgaged Property, then the related Servicer
may, in its reasonable judgment and in accordance with Accepted Servicing Practices, choose to proceed with foreclosure or acceptance
of a deed in lieu of foreclosure and such Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or
acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation
Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse such Servicer, such Servicer shall be entitled to be
reimbursed from amounts in the related Collection Account pursuant to Section 3.08(a) hereof. In the event the related Servicer does
not proceed with foreclosure or acceptance of a deed in lieu of foreclosure pursuant to the first sentence of this paragraph, such
Servicer shall be reimbursed for all Advances and Servicing Advances made with respect to the related Mortgaged Property from the
related Collection Account pursuant to Section 3.08(a) hereof, and such Servicer shall have no further obligation to service such
Non-Designated Mortgage Loan under the provisions of this Agreement.
(b) With respect to any REO Property related to a Non-Designated Mortgage Loan, the deed or certificate of sale shall, subject
to applicable laws, be taken in the name of the Trustee for the benefit of the Certificateholders, or its nominee, on behalf of the
Certificateholders. 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 related Servicer shall ensure that the title to such REO Property references this Agreement and the
Trustee capacity hereunder. Pursuant to its efforts to sell such REO Property, the related Servicer shall in accordance with
Accepted Servicing Practices manage, conserve, protect and operate each REO Property for the purpose of its prompt disposition and
sale. The related Servicer, either itself or through an agent selected by such Servicer, shall manage, conserve, protect and operate
the REO Property in the same manner that it manages, conserves, protects and operates other foreclosed property for its own account,
and in the same manner that similar property in the same locality as the REO Property is managed. Upon request, the related Servicer
shall furnish to the Trust Administrator on or before each Distribution Date a statement with respect to any REO Property covering
the operation of such REO Property for the previous calendar month and such Servicer's efforts in connection with the sale of such
REO Property and any rental of such REO Property incidental to the sale thereof for the previous calendar month. That statement shall
be accompanied by such other information as the Trust Administrator shall reasonably request and which is necessary to enable the
Trust Administrator to comply with the reporting requirements of the REMIC Provisions. The net monthly rental income, if any, from
such REO Property shall be deposited in the related Collection Account no later than the close of business on each Determination
Date. The related Servicer shall perform the tax reporting and withholding required by Sections 1445 and 6050J of the Code with
respect to foreclosures and abandonments, the tax reporting required by Section 6050H of the Code with respect to the receipt of
mortgage interest from individuals and any tax reporting required by Section 6050P of the Code with respect to the cancellation of
indebtedness by certain financial entities, by preparing such tax and information returns as may be required, in the form required,
and delivering the same to the Trust Administrator for filing.
To the extent consistent with Accepted Servicing Practices, the related Servicer shall also maintain on each
REO Property related to a Non-Designated Mortgage Loan fire and hazard insurance with extended coverage in an amount which is equal to
the outstanding principal balance of the related Non-Designated Mortgage Loan (as reduced by any amount applied as a reduction of
principal at the time of acquisition of the REO Property), liability insurance and, to the extent required and available under the
Flood Disaster Protection Act of 1973, as amended, flood insurance in the amount required above.
(c) In the event that the Trust Fund acquires any Mortgaged Property as aforesaid or otherwise in connection with a default or
imminent default on a Mortgage Loan, the related Servicer shall dispose of such Mortgaged Property prior to three years after the end
of the calendar year of its acquisition by the Trust Fund unless (i) the Trustee and the Trust Administrator shall have been supplied
with an Opinion of Counsel to the effect that the holding by the Trust Fund of such Mortgaged Property subsequent to such three-year
period will not result in the imposition of taxes on "prohibited transactions" of any REMIC hereunder as defined in section 860F of
the Code or cause any REMIC hereunder to fail to qualify as a REMIC at any time that any Certificates are outstanding, in which case
the Trust Fund may continue to hold such Mortgaged Property (subject to any conditions contained in such Opinion of Counsel) or
(ii) the applicable Servicer shall have applied for, prior to the expiration of such three-year period, an extension of such
three-year period in the manner contemplated by Section 856(e)(3) of the Code, in which case the three-year period shall be extended
by the applicable extension period. Notwithstanding any other provision of this Agreement, no Mortgaged Property acquired by the
Trust Fund shall be rented (or allowed to continue to be rented) or otherwise used for the production of income by or on behalf of
the Trust Fund in such a manner or pursuant to any terms that would (i) cause such Mortgaged Property to fail to qualify as
"foreclosure property" within the meaning of section 860G(a)(8) of the Code or (ii) subject any REMIC hereunder to the imposition of
any federal, state or local income taxes on the income earned from such Mortgaged Property under Section 860G(c) of the Code or
otherwise, unless the related Servicer has agreed to indemnify and hold harmless the Trust Fund with respect to the imposition of any
such taxes.
In the event of a default on a Mortgage Loan one or more of whose obligors is not a United States Person, as that
term is defined in Section 7701(a)(30) of the Code, in connection with any foreclosure or acquisition of a deed in lieu of
foreclosure (together, "foreclosure") in respect of such Mortgage Loan, the related Servicer will cause compliance with the
provisions of Treasury Regulation Section 1.1445-2(d)(3) (or any successor thereto) necessary to assure that no withholding tax
obligation arises with respect to the proceeds of such foreclosure except to the extent, if any, that proceeds of such foreclosure
are required to be remitted to the obligors on such Mortgage Loan.
(d) The decision of a Servicer to foreclose on a defaulted Non-Designated Mortgage Loan shall be subject to a determination by
such Servicer that the proceeds of such foreclosure would exceed the costs and expenses of bringing such a proceeding. The income
earned from the management of any REO Properties, net of reimbursement to such Servicer for expenses incurred (including any property
or other taxes) in connection with such management and net of applicable accrued and unpaid Servicing Fees, and unreimbursed Advances
and Servicing Advances, shall be applied to the payment of principal of and interest on the related defaulted Non-Designated Mortgage
Loans (with interest accruing as though such Non-Designated Mortgage Loans were still current) and all such income shall be deemed,
for all purposes in this Agreement, to be payments on account of principal and interest on the related Mortgage Notes and shall be
deposited into the related Collection Account. To the extent the net income received during any calendar month is in excess of the
amount attributable to amortizing principal and accrued interest at the related Mortgage Rate on the related Non-Designated Mortgage
Loan for such calendar month, such excess shall be considered to be a partial prepayment of principal of the related Non-Designated
Mortgage Loan.
(e) The proceeds from any liquidation of a Non-Designated Mortgage Loan, as well as any income from a related REO Property, will
be applied in the following order of priority: first, to reimburse the related Servicer for any related unreimbursed Servicing
Advances and Servicing Fees, and with respect to Xxxxx Fargo, any REO Disposition Fees related to such Mortgage Loan; second, to
reimburse such Servicer for any unreimbursed Advances; third, to reimburse the related Collection Account for any Nonrecoverable
Advances (or portions thereof) that were previously withdrawn by such Servicer pursuant to Section 3.08(a)(iii) that related to such
Non-Designated Mortgage Loan; fourth, to accrued and unpaid interest (to the extent no Advance has been made for such amount or any
such Advance has been reimbursed) on the Non-Designated Mortgage Loan or related REO Property, at the per annum rate equal to the
related Mortgage Rate reduced by the related Servicing Fee Rate, and any primary mortgage guaranty insurance fee rate, if applicable,
to the Due Date occurring in the month in which such amounts are required to be distributed; and fifth, as a recovery of principal of
the Mortgage Loan. Excess proceeds, if any, from the liquidation of a Liquidated Mortgage Loan ("Excess Proceeds") that is a
Non-Designated Mortgage Loan will be retained by the related Servicer as additional servicing compensation pursuant to Section 3.14.
(f) With respect to any Mortgage Loan related to the Group 1, Group 2, Group 3, Group 4 or Group 5 Certificates, a Servicer of
such Mortgage Loans may (but is not obligated to) enter into a special servicing agreement with an unaffiliated Holder of a 100%
Percentage Interest of the most junior outstanding Class C-B Certificates. Any such agreement may contain provisions whereby such
Holder may (i) instruct the related Servicer to commence or delay foreclosure proceedings with respect to such Mortgage Loans that
are delinquent and will contain provisions for the deposit of cash with such Servicer by such Holder that would be available for
distribution to Certificateholders if Liquidation Proceeds are less than they otherwise may have been had such Servicer acted in
accordance with its normal procedures, (ii) purchase such Mortgage Loans that are delinquent from the Trust Fund immediately prior to
the commencement of foreclosure proceedings at a price equal to the Purchase Price, and/or (iii) assume all of the servicing rights
and obligations (as a Sub-Servicer on behalf of the related Servicer) with respect to such Mortgage Loans that are delinquent so long
as (A) such Holder meets the requirements for a Sub-Servicer set forth in Section 3.02(a), (B) such Holder has a current special
servicing ranking of at least "Average" from S&P, (C) such Holder will subservice such Mortgage Loans in accordance with this
Agreement, (D) the related Servicer has the right to transfer such servicing rights without the payment of any compensation to a
Sub-Servicer.
With respect to any Mortgage Loan related to the Group 6 Certificates, a Servicer of such Mortgage Loans may (but is
not obligated to) enter into a special servicing agreement with an unaffiliated Holder of a 100% Percentage Interest of the Class 6-X
Certificates. Any such agreement may contain provisions whereby such Holder may (i) instruct the related Servicer to commence or
delay foreclosure proceedings with respect to such Mortgage Loans that are delinquent and will contain provisions for the deposit of
cash with such Servicer by such Holder that would be available for distribution to Certificateholders if Liquidation Proceeds are
less than they otherwise may have been had such Servicer acted in accordance with its normal procedures, (ii) purchase such Mortgage
Loans that are delinquent from the Trust Fund immediately prior to the commencement of foreclosure proceedings at a price equal to
the Purchase Price, and/or (iii) assume all of the servicing rights and obligations (as a Sub-Servicer on behalf of the related
Servicer) with respect to such Mortgage Loans that are delinquent so long as such Holder (A) such Holder meets the requirements for a
Sub-Servicer set forth in Section 3.02(a), (B) such Holder has a current special servicing ranking of at least "Average" from S&P,
(C) such Holder will subservice such Mortgage Loans in accordance with this Agreement, (D) the related Servicer has the right to
transfer such servicing rights without the payment of any compensation to a Sub-Servicer.
(g) The Special Servicer, at its option, may (but is not obligated to) purchase from the Trust Fund, (a) any Mortgage Loan that
is delinquent in payment 90 or more days or (b) any related Mortgage Loan with respect to which there has been initiated legal action
or other proceedings for the foreclosure of the related Mortgaged Property either judicially or non-judicially, in each case,
provided that the applicable Servicer has the right to transfer the related servicing rights without the payment of any compensation
to a Sub-Servicer. In the event that the Special Servicer exercises such option, the Purchase Price therefor shall be deposited in
the related Collection Account and upon such deposit of the Purchase Price and receipt of a Request for Release in the form of
Exhibit K hereto, the Custodian shall release the related Mortgage File held for the benefit of the Certificateholders to the Special
Servicer, and the Trustee shall execute and deliver at the Special Servicer's direction such instruments of transfer or assignment
prepared by the Special Servicer, in each case without recourse, as shall be necessary to transfer title from the Trustee to the
Special Servicer. The applicable Servicer shall be entitled to reimbursement from the Special Servicer for all expenses incurred by
it in connection with the transfer of any Mortgage Loan to the Special Servicer pursuant to this Section 3.11(g).
SECTION 3.12. Trustee and Trust Administrator to Cooperate; Release of Mortgage Files.
Upon the payment in full of any Non-Designated Mortgage Loan, or the receipt by a Servicer of a notification that
payment in full will be escrowed in a manner customary for such purposes, such Servicer will immediately notify the Custodian by
delivering, or causing to be delivered a "Request for Release" substantially in the form of Exhibit K. Upon receipt of such request,
the Custodian shall within three Business Days release the related Mortgage File to the related Servicer, and the Trustee shall
within three Business Days of such Servicer's direction execute and deliver to such Servicer the deed of reconveyance or release or
satisfaction of mortgage or such instrument releasing the lien of the Mortgage in each case provided by such Servicer, and the
Custodian shall deliver the Mortgage Note with written evidence of cancellation thereon. Expenses incurred in connection with any
instrument of satisfaction or deed of reconveyance shall be chargeable to the related Mortgagor. From time to time and as shall be
appropriate for the servicing or foreclosure of any Non-Designated Mortgage Loan, including for such purpose, collection under any
policy of flood insurance, any fidelity bond or errors or omissions policy, or for the purposes of effecting a partial release of any
Mortgaged Property from the lien of the Mortgage or the making of any corrections to the Mortgage Note or the Mortgage or any of the
other documents included in the Mortgage File, the Custodian within three Business Days of delivery to the Custodian of a Request for
Release in the form of Exhibit K signed by a Servicing Officer, release the Mortgage File to the related Servicer. Subject to the
further limitations set forth below, the related Servicer shall cause the Mortgage File or documents so released to be returned to
the Custodian on its behalf, when the need therefor by such Servicer no longer exists, unless the Non-Designated Mortgage Loan is
liquidated and the proceeds thereof are deposited in the related Collection Account, in which case such Servicer shall deliver to the
Trustee, or the Custodian a Request for Release in the form of Exhibit K, signed by a Servicing Officer. Each Servicer is also
authorized to cause the removal from the registration on the MERS(R) System of such Mortgage and to execute and deliver, on behalf of
the Trustee and the Certificateholders or any of them, any and all instruments of satisfaction or cancellation or of partial or full
release, including an assignment of such loan to the Trustee.
If a Servicer at any time seeks to initiate a foreclosure proceeding in respect of any Mortgaged Property related to
a Non-Designated Mortgage Loan as authorized by this Agreement, such Servicer shall deliver or cause to be delivered to the Trustee,
for signature, as appropriate, any court pleadings, requests for trustee's sale or other documents necessary to effectuate such
foreclosure or any legal action brought to obtain judgment against the Mortgagor on the Mortgage Note or the Mortgage or to obtain a
deficiency judgment or to enforce any other remedies or rights provided by the Mortgage Note or the Mortgage or otherwise available
at law or in equity.
SECTION 3.13. Documents, Records and Funds in Possession of a Servicer to be Held for the Trust.
Notwithstanding any other provisions of this Agreement, each Servicer shall transmit to the Custodian, as required
by this Agreement all documents and instruments in respect of a Non-Designated Mortgage Loan coming into the possession of the
related Servicer from time to time required to be delivered to the Trustee, or the Custodian on its behalf, pursuant to the terms
hereof and shall account fully to the Trust Administrator for any funds received by such Servicer or which otherwise are collected by
such Servicer as Liquidation Proceeds or Insurance Proceeds in respect of any Non-Designated Mortgage Loan. All Mortgage Files and
funds collected or held by, or under the control of, a Servicer in respect of any Non-Designated Mortgage Loans, whether from the
collection of principal and interest payments or from Liquidation Proceeds, including but not limited to, any funds on deposit in a
Collection Account, shall be held by the related Servicer for and on behalf of the Trust, the Trustee or the Trust Administrator and
shall be and remain the sole and exclusive property of the Trust, subject to the applicable provisions of this Agreement. Each
Servicer also agrees that it shall not create, incur or subject any Mortgage File or any funds that are deposited in the related
Collection Account, Certificate Account or any related Escrow Account, or any funds that otherwise are or may become due or payable
to the Trust, the Trustee or the Trust Administrator for the benefit of the Certificateholders, to any claim, lien, security
interest, judgment, levy, writ of attachment or other encumbrance, or assert by legal action or otherwise any claim or right of
setoff against any Mortgage File or any funds collected on, or in connection with, a Non-Designated Mortgage Loan, except, however,
that such Servicer shall be entitled to set off against and deduct from any such funds any amounts that are properly due and payable
to such Servicer under this Agreement.
SECTION 3.14. Servicing Fee; Indemnification of Master Servicer.
(a) As compensation for its services hereunder, each Servicer shall be entitled to withdraw from the applicable Collection
Account or to retain from interest payments on the related Non-Designated Mortgage Loans, the amount of its Servicing Fee, for each
Mortgage Loan serviced by it, less any amounts in respect of its Servicing Fee, as applicable, payable by such Servicer pursuant to
Section 3.05(c)(vi). The Servicing Fee for each Servicer is limited to, and payable solely from, the interest portion of such
Scheduled Payments collected by such Servicer or as otherwise provided in Section 3.08(a). In connection with the servicing of any
Special Serviced Mortgage Loan, the Special Servicer shall receive the Servicing Fee for such Special Serviced Mortgage Loan as its
compensation and Ancillary Income with respect to Special Serviced Mortgage Loans.
(b) With respect to each Non-Designated Mortgage Loan, additional servicing compensation in the form of Ancillary Income and
Excess Proceeds shall be retained by the related Servicer, additional servicing compensation in the form of Payoff Interest not
required to make payments in respect of Compensating Interest Payments shall be retained by SPS. Each Servicer shall be required to
pay all expenses incurred by it in connection with its servicing activities hereunder (including the payment of any expenses incurred
in connection with any Subservicing Agreement entered into pursuant to Section 3.02 and the payment of any premiums for insurance
required pursuant to Section 3.16) and shall not be entitled to reimbursement thereof except as specifically provided for in this
Agreement.
(c) The Master Servicer shall be compensated by the Trust Administrator as separately agreed. The Master Servicer and any
director, officer, employee or agent of the Master Servicer shall be indemnified by DLJMC (or if DLJMC shall fail to do so, by the
Trust) and held harmless against any loss, liability or expense (including reasonable attorney's fees and expenses) incurred in
connection with any claim or legal action relating to (a) this Agreement, (b) the Certificates or (c) the performance of any of the
Master Servicer's duties hereunder, other than any loss, liability or expense incurred by reason of willful misfeasance, bad faith or
negligence in the performance of any of the Master Servicer's duties hereunder or incurred by reason of any action of the Master
Servicer taken at the direction of the Certificateholders; provided, however, that the sum of (x) such indemnity amounts payable by
DLJMC or the Trust to the Master Servicer pursuant to this Section 3.14(c) and (y) the indemnity amounts payable by DLJMC or the
Trust to the Trust Administrator pursuant to Section 10.05, shall not exceed $200,000 per year; provided, further, that any amounts
not payable by DLJMC or the Trust to the Master Servicer due to the preceding proviso shall be payable by DLJMC (or if DLJMC fails to
do so, by the Trust) in any succeeding year, subject to the aggregate $200,000 per annum limitation imposed by the preceding
proviso. Such indemnity shall survive the termination of this Agreement or the resignation or removal of the Master Servicer
hereunder.
SECTION 3.15. Access to Certain Documentation.
The Master Servicer and each Servicer shall provide to the OTS and the FDIC and to comparable regulatory authorities
supervising Holders of Subordinate Certificates and the examiners and supervisory agents of the OTS, the FDIC and such other
authorities, access to the documentation regarding the related Non-Designated Mortgage Loans required by applicable regulations of
the OTS and the FDIC. Such access shall be afforded without charge, but only upon reasonable and prior written request and during
normal business hours at the offices designated by the Master Servicer or such Servicer. Nothing in this Section shall limit the
obligation of the Master Servicer or any Servicer to observe any applicable law prohibiting disclosure of information regarding the
Mortgagors and the failure of the Master Servicer or such Servicer to provide access as provided in this Section as a result of such
obligation shall not constitute a breach of this Section. Nothing in this Section 3.15 shall require the Master Servicer or any
Servicer to collect, create, collate or otherwise generate any information that it does not generate in its usual course of business.
SECTION 3.16. Maintenance of Fidelity Bond and Errors and Omissions Insurance.
Each Servicer shall maintain with responsible companies, at its own expense, a blanket Fidelity Bond and an Errors
and Omissions Insurance Policy, with broad coverage on all officers, employees or other persons acting in any capacity requiring such
persons to handle funds, money, documents or papers relating to the related Mortgage Loans ("Servicer Employees"). Any such Fidelity
Bond and Errors and Omissions Insurance Policy shall be in the form of the Mortgage Banker's Blanket Bond and shall protect and
insure the related Servicer against losses, including forgery, theft, embezzlement, fraud, errors and omissions and negligent acts of
such Servicer Employees. Such Fidelity Bond and Errors and Omissions Insurance Policy also shall protect and insure each Servicer
against losses in connection with the release or satisfaction of a related Mortgage Loan without having obtained payment in full of
the indebtedness secured thereby. No provision of this Section 3.16 requiring such Fidelity Bond and Errors and Omissions Insurance
Policy shall diminish or relieve a Servicer from its duties and obligations as set forth in this Agreement. The minimum coverage
under any such bond and insurance policy shall be at least equal to the corresponding amounts required by FNMA, unless the related
Servicer has obtained a waiver of such requirement. Upon the request of the Trust Administrator, the related Servicer shall cause to
be delivered to the Trust Administrator a certificate of insurance of the insurer and the surety including a statement from the
surety and the insurer that such fidelity bond and insurance policy shall in no event be terminated or materially modified without 30
days' prior written notice to the Trust Administrator.
The Master Servicer shall maintain insurance in such amounts generally acceptable for entities serving as master
servicer.
SECTION 3.17. Special Serviced Mortgage Loans.
If directed by the Special Servicer and solely at the Special Servicer's option, a Servicer (a "Transferring
Servicer") shall transfer the servicing of any Mortgage Loan serviced by the Transferring Servicer which is 90 days or more delinquent
(determined as of the close of business of the last day of the month preceding the related Data Remittance Date) to the Special
Servicer. The Special Servicer shall thereupon assume all of the rights and obligations of the Transferring Servicer hereunder
arising thereafter and the Transferring Servicer shall have no further rights or obligations hereunder with respect to such Mortgage
Loan (except that the Special Servicer shall not be (i) liable for losses of the Transferring Servicer pursuant to Section 3.09
hereof or for any acts or omissions of the Transferring Servicer hereunder prior to the servicing transfer date, (ii) obligated to
effectuate repurchases or substitutions of Mortgage Loans hereunder including, but not limited to, repurchases or substitutions of
Mortgage Loans pursuant to Section 2.02 or 2.03 hereof, (iii) deemed to have made any representations and warranties of a
Transferring Servicer hereunder or (iv) be subject to any other agreement not executed by the Special Servicer). Upon the transfer
of the servicing of any such Mortgage Loan to the Special Servicer, the Special Servicer shall be entitled to the related Servicing
Fee and other compensation accruing after the servicing transfer date with respect to such Mortgage Loans pursuant to Section 3.14.
In connection with the transfer of the servicing of any Mortgage Loan to the Special Servicer, the Transferring
Servicer, at the Special Servicer's expense, shall deliver to the Special Servicer all documents and records relating to such
Mortgage Loans and an accounting of amounts collected or held by it and otherwise use its best efforts to effect the orderly and
efficient transfer of the servicing to the Special Servicer. On the servicing transfer date, the Special Servicer shall reimburse
the Transferring Servicer for all unreimbursed Advances, Servicing Advances and Servicing Fees, as applicable, relating to the
Mortgage Loans for which the servicing is being transferred. The Special Servicer shall be entitled to be reimbursed pursuant to
Section 3.08 or otherwise pursuant to this Agreement for all such Advances, Servicing Advances and Servicing Fees, as applicable,
paid by the Transferring Servicer pursuant to this Section 3.17. In addition, the Special Servicer shall notify the Master Servicer
of such transfer and the effective date of such transfer, and amend the Mortgage Loan Schedule to reflect that such Mortgage Loans
are Special Serviced Mortgage Loans.
SECTION 3.18. Indemnification of Servicers and Master Servicer.
Each Servicer agrees to indemnify and hold the Master Servicer harmless from and against any and all losses, claims,
expenses, costs or liabilities (including attorneys fees and court costs) incurred by the Master Servicer as a result of or in
connection with the failure by such Servicer to perform the obligations or responsibilities imposed upon or undertaken by such
Servicer under this Agreement.
The Master Servicer agrees to indemnify and hold each Servicer harmless from and against any and all losses, claims,
expenses, costs or liabilities (including attorneys fees and court costs) incurred by such Servicer as a result of or in connection
with the failure by the Master Servicer to perform the obligations or responsibilities imposed upon or undertaken by the Master
Servicer under this Agreement.
SECTION 3.19. Notification of Adjustments.
With respect to each Mortgage Loan, the related Servicer shall adjust the Mortgage Rate on the related Adjustment
Date in compliance with the requirements of applicable law and the related Mortgage and Mortgage Note. The related Servicer shall
execute and deliver any and all necessary notices required under applicable law and the terms of the related Mortgage Note and
Mortgage regarding the Mortgage Rate adjustments. Upon the discovery by the related Servicer or the receipt of notice from the Trust
Administrator that such Servicer has failed to adjust a Mortgage Rate in accordance with the terms of the related Mortgage Note, such
Servicer shall immediately deposit in the Certificate Account from its own funds the amount of any interest loss or deferral caused
the Trust Administrator thereby.
SECTION 3.20. Designated Mortgage Loans.
(a) For and on behalf of the Certificateholders, the Master Servicer shall oversee and enforce the obligation of each Designated
Servicer to service and administer the related Designated Mortgage Loans in accordance with the terms of the related Designated
Servicing 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 this Agreement and with customary and usual standards of practice of prudent mortgage loan master
servicers. Furthermore, the Master Servicer shall oversee and consult with each Designated Servicer as necessary from time-to-time
to carry out the Master Servicer's obligations hereunder, and shall receive, review and evaluate all reports, information and other
data provided to the Master Servicer by each Designated Servicer.
The Master Servicer shall terminate the rights and obligations of any Designated Servicer under the related
Designated Servicing Agreement, upon the failure of such Designated Servicer to perform any of its obligations under such Designated
Servicing Agreement, which failure results in an event of default as provided in Section 14 of the Countrywide Underlying Servicing
Agreement, with respect to Countrywide. In the event a Designated Servicer is terminated pursuant to the preceding sentence, the
Master Servicer shall notify the Depositor and the Trust Administrator and shall either (a) select and engage a successor servicer of
the related Mortgage Loans or (b) act as successor servicer of the related Mortgage Loans. In either case, the Designated Mortgage
Loans related to such Designated Servicing Agreement shall be serviced by the successor to such Designated Servicer pursuant to the
servicing provisions of this Agreement, and such Designated Mortgage Loans shall be deemed as "Non-Designated Mortgage Loans" under
this Agreement; 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 Designated Servicer. Such
enforcement, including, without limitation, the legal prosecution of claims, termination of Designated 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 Master
Servicer, in its good faith business judgment, would require were it the owner of the related Mortgage Loans. The Master Servicer
shall pay the costs of such enforcement at its own expense, provided that the Master Servicer shall not be required to prosecute or
defend any legal action except to the extent that the Master Servicer 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 related to any termination of a Designated
Servicer, appointment of a successor Designated Servicer or the transfer and assumption of servicing by the Master Servicer with
respect to any Designated Servicing 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 a Designated Servicer as a result of an event of
default by such Designated Servicer 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 reimbursed by the terminated Designated Servicer, the
Master Servicer shall be entitled to reimbursement of such costs and expenses from the Trust.
(b) Each month, if a Designated Servicer fails to make a required Advance by the date such Advance is required to be made under
the related Designated Servicing Agreement, the Master Servicer shall on the Cash Remittance Date deposit in the amount of any
required Advance in the Certificate Account.
(c) Each month, the Master Servicer shall make Compensating Interest Payments with respect to the Designated Mortgage Loans to
the extent provided in Section 3.03.
SECTION 3.21. Assigned Prepayment Premiums.
Notwithstanding anything in this Agreement to the contrary, in the event of a Principal Prepayment, the applicable
Servicer may not waive any Assigned Prepayment Premium or portion thereof required by the terms of the related Mortgage Note unless
(i) the related Mortgage Loan is in default or foreseeable default and such waiver (a) is standard and customary in servicing
mortgage loans similar to the Mortgage Loans and (b) would, in the reasonable judgment of such Servicer, maximize recovery of total
proceeds taking into account the value of such Assigned Prepayment Premium and the related Mortgage Loan, (ii) (A) the enforceability
thereof is limited (1) by bankruptcy, insolvency, moratorium, receivership, or other similar law relating to creditors' rights
generally or (2) due to acceleration in connection with a foreclosure or other involuntary payment, or (B) the enforceability is
otherwise limited or prohibited by applicable law, (iii) the enforceability would be considered "predatory" pursuant to written
guidelines issued by any applicable federal, state or local authority having jurisdiction over such matters, or (iv) such Servicer is
unable to locate documentation sufficient to allow it to confirm the existence and amount of such Assigned Prepayment Premium after
using commercially reasonable efforts to locate such documentation, which efforts shall include, but are not limited to, seeking such
documentation from the Depositor, the Seller, the Custodian and from its own records or files. For the avoidance of doubt, the
applicable Servicer may waive an Assigned Prepayment Premium in connection with a short sale or short payoff on a defaulted Mortgage
Loan. If an applicable Servicer has waived all or a portion of an Assigned Prepayment Premium relating to a Principal Prepayment,
other than as provided above, such Servicer shall deliver to the Trust Administrator no later than the next succeeding Cash
Remittance Date, for deposit into the Certificate Account the amount of such Assigned Prepayment Premium (or such portion thereof as
had been waived) for distribution in accordance with the terms of this Agreement and if such Servicer fails to deliver such amount,
any of the Trust Administrator, the Master Servicer, the Trustee or the Seller may enforce such obligation. If such Servicer has
waived all or a portion of an Assigned Prepayment Premium for any reason, it shall include such information in any monthly reports it
provides, and such Servicer if other than Xxxxx Fargo Bank, N.A., shall notify the Trust Administrator, the Seller, the Master
Servicer and the Trustee of such waiver, and if such Servicer is Xxxxx Fargo Bank, N.A., Xxxxx Fargo Bank, N.A. shall notify the
Trust Administrator and the Trust Administrator shall forward any such notice to the Seller, the Master Servicer and the Trustee.
Notwithstanding any provision in this Agreement to the contrary, in the event the Assigned Prepayment Premium payable under the terms
of the related Mortgage Note is less than the amount of the Assigned Prepayment Premium set forth in the Mortgage Loan Schedule or
other information provided to the applicable Servicer, such Servicer shall not have any liability or obligation with respect to such
difference. The Master Servicer shall not have any responsibility for verifying the accuracy of the amount of Assigned Prepayment
Premiums remitted by the Servicers.
Notwithstanding anything in this Agreement to the contrary, the Trustee and the Trust Administrator shall have no
obligation to collect Prepayment Premiums from any Servicer or Designated Servicer other than Xxxxx Fargo, in its capacity as a
Servicer (or any of its successors and assigns), or SPS (or any of its successors and assigns).
ARTICLE IV
PAYMENTS AND STATEMENTS TO CERTIFICATEHOLDERS
SECTION 4.01. Priorities of Distribution.
(I) (A) On each Distribution Date, with respect to the Group 1, Group 2, Group 3, Group 4, Group 5 and
Class C-B Certificates, the Trust Administrator shall determine the amounts to be distributed to each Class of Certificates as
follows:
(a) with respect to the Group 1 Certificates, from the Available Distribution Amount relating to Loan Group 1:
(i) first, concurrently, to the Group 1 Certificates, an amount allocable to interest equal to the related Interest Distribution
Amount for such Distribution Date, any shortfall being allocated pro rata between such Classes based on the Interest
Distribution Amount that would have been distributed in the absence of such shortfall; and
(ii) second, on each Distribution Date, from the Available Distribution Amount for Loan Group 1 remaining after giving effect to
the distributions pursuant to Section 4.01(I)(A)(a)(i) above, the Group 1 Senior Principal Distribution Amount, as
principal, sequentially, as follows:
(A) first, to the Class AR and Class AR-L Certificates, pro rata based on their respective Class Principal Balances immediately
prior to such Distribution Date, until their respective Class Principal Balances have been reduced to zero;
and
(B) second, the Group 1 Senior Principal Distribution Amount for that Distribution Date remaining after making the payments
specified in clause (A) above, to the Class 1-A-1, Class 1-A-2 and Class 1-A-3 Certificates, pro rata based
on their respective Class Principal Balances immediately prior to such Distribution Date, until their
respective Class Principal Balances have been reduced to zero;
(b) with respect to the Group 2 Certificates, and from the Available Distribution Amount relating to Loan Group 2:
(i) first, concurrently, to the Group 2 Certificates, an amount allocable to interest equal to the related Interest Distribution
Amount for such Distribution Date, any shortfall being allocated pro rata between such Classes based on the Interest
Distribution Amount that would have been distributed in the absence of such shortfall; and
(ii) second, on each Distribution Date, from the Available Distribution Amount for Loan Group 2 remaining after giving effect to
the distributions pursuant to Section 4.01(I)(A)(b)(i) above, to the Class 2-A-1 and Class 2-A-2 Certificates, as
principal, the Group 2 Senior Principal Distribution Amount, pro rata based on their respective Class Principal
Balances immediately prior to such Distribution Date, until their respective Class Principal Balances have been
reduced to zero.
(c) with respect to the Group 3 Certificates, and from the Available Distribution Amount relating to Loan Group 3:
(i) first, to the Group 3 Certificates, an amount allocable to interest equal to the related Interest Distribution Amount for
such Distribution Date; and
(ii) second, on each Distribution Date, from the Available Distribution Amount for Loan Group 3 remaining after giving effect to
the distributions pursuant to Section 4.01(I)(A)(c)(i) above, to the Class 3-A-1, Class 3-A-2, Class 3-A-3 and
Class 3-A-4 Certificates, as principal, the Group 3 Senior Principal Distribution Amount, pro rata based on their
respective Class Principal Balances immediately prior to such Distribution Date, until their respective Class
Principal Balances have been reduced to zero.
(d) with respect to the Group 4 Certificates, and from the Available Distribution Amount relating to Loan Group 4:
(i) first, concurrently, to the Group 4 Certificates, an amount allocable to interest equal to the related Interest Distribution
Amount for such Distribution Date, any shortfall being allocated pro rata between such Classes based on the Interest
Distribution Amount that would have been distributed in the absence of such shortfall; and
(ii) second, on each Distribution Date, from the Available Distribution Amount for Loan Group 4 remaining after giving effect to
the distributions pursuant to Section 4.01(I)(A)(d)(i) above, to the Class 4-A-1 and Class 4-A-2 Certificates, as
principal, the Group 4 Senior Principal Distribution Amount, pro rata based on their respective Class Principal
Balances immediately prior to such Distribution Date, until their respective Class Principal Balances have been
reduced to zero.
(e) with respect to the Group 5 Certificates, and from the Available Distribution Amount relating to Loan Group 5:
(i) first, concurrently, to the Group 5 Certificates, an amount allocable to interest equal to the related Interest Distribution
Amount for such Distribution Date, any shortfall being allocated pro rata between such Classes based on the Interest
Distribution Amount that would have been distributed in the absence of such shortfall; and
(ii) second, on each Distribution Date, from the Available Distribution Amount for Loan Group 5 remaining after giving effect to
the distributions pursuant to Section 4.01(I)(A)(e)(i) above, to the Class 5-A-1 and Class 5-A-2 Certificates, as
principal, the Group 5 Senior Principal Distribution Amount, pro rata based on their respective Class Principal
Balances immediately prior to such Distribution Date, until their respective Class Principal Balances have been
reduced to zero.
(f) with respect to the Class C-B and Class AR-L Certificates, from the Available Distribution Amount relating to Loan Group 1,
Loan Group 2, Loan Group 3, Loan Group 4 and Loan Group 5 remaining after the distributions pursuant to
Sections 4.01(I)(A)(a) through (e) above, subject to Sections 4.01(I)(C) below, and further subject to any payments to the
Group 1, Group 2, Group 3, Group 4 and Group 5 Certificates as described in Section 4.07, to the following Classes in the
following order of priority:
(i) to the Class C-B-1 Certificates, an amount allocable to interest equal to the Interest Distribution Amount for such
Class for such Distribution Date;
(ii) to the Class C-B-1 Certificates, an amount allocable to principal equal to its Pro Rata Share for such Distribution Date,
until the Class Principal Balance of Class C-B-1 Certificates has been reduced to zero;
(iii) to the Class C-B-2 Certificates, an amount allocable to interest equal to the Interest Distribution Amount for such
Class for such Distribution Date;
(iv) to the Class C-B-2 Certificates, an amount allocable to principal equal to its Pro Rata Share for such Distribution Date,
until the Class Principal Balance of Class C-B-2 Certificates has been reduced to zero;
(v) to the Class C-B-3 Certificates, an amount allocable to interest equal to the Interest Distribution Amount for such
Class for such Distribution Date;
(vi) to the Class C-B-3 Certificates, an amount allocable to principal equal to its Pro Rata Share for such Distribution Date,
until the Class Principal Balance of Class C-B-3 Certificates has been reduced to zero;
(vii) to the Class C-B-4 Certificates, an amount allocable to interest equal to the Interest Distribution Amount for such
Class for such Distribution Date;
(viii) to the Class C-B-4 Certificates, an amount allocable to principal equal to its Pro Rata Share for such Distribution Date,
until the Class Principal Balance of Class C-B-4 Certificates has been reduced to zero;
(ix) to the Class C-B-5 Certificates, an amount allocable to interest equal to the Interest Distribution Amount for such
Class for such Distribution Date;
(x) to the Class C-B-5 Certificates, an amount allocable to principal equal to its Pro Rata Share for such Distribution Date,
until the Class Principal Balance of Class C-B-5 Certificates has been reduced to zero;
(xi) to the Class C-B-6 Certificates, an amount allocable to interest equal to the Interest Distribution Amount for such
Class for such Distribution Date;
(xii) to the Class C-B-6 Certificates, an amount allocable to principal equal to its Pro Rata Share for such Distribution Date,
until the Class Principal Balance of Class C-B-6 Certificates has been reduced to zero;
(xiii) to the Class C-B-7 Certificates, an amount allocable to interest equal to the Interest Distribution Amount for such
Class for such Distribution Date;
(xiv) to the Class C-B-7 Certificates, an amount allocable to principal equal to its Pro Rata Share for such Distribution Date,
until the Class Principal Balance of Class C-B-7 Certificates has been reduced to zero;
(xv) to the Class C-B-8 Certificates, an amount allocable to interest equal to the Interest Distribution Amount for such
Class for such Distribution Date;
(xvi) to the Class C-B-8 Certificates, an amount allocable to principal equal to its Pro Rata Share for such Distribution Date,
until the Class Principal Balance of Class C-B-8 Certificates has been reduced to zero;
(xvii) to the Class C-B-9 Certificates, an amount allocable to interest equal to the Interest Distribution Amount for such
Class for such Distribution Date;
(xviii) to the Class C-B-9 Certificates, an amount allocable to principal equal to its Pro Rata Share for such Distribution Date,
until the Class Principal Balance of Class C-B-9 Certificates has been reduced to zero;
(xix) to the Class C-B-1, Class C-B-2, Class C-B-3, Class C-B-4, Class C-B-5, Class C-B-6, Class C-B-7, Class C-B-8 and
Class C-B-9 Certificates, in that order, up to an amount of Net Realized Losses for such Class, if any; provided,
however, that any distribution pursuant to this Section 4.01(I)(A)(e)(xiii) shall not result in a further reduction
of the Class Principal Balance of any of the Class C-B Certificates; and
(xx) to the Class AR-L Certificates, any remaining Available Distribution Amount for Loan Group 1, Loan Group 2, Loan Group 3,
Loan Group 4 and Loan Group 5, (to the extent such amount is held by REMIC I), or to the Class AR Certificates, any
remaining Available Distribution Amount for Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4 and Loan Group 5
(to the extent such amount is held by REMIC III).
(B) On each Distribution Date, the amount referred to in clause (i) of the definition of Interest Distribution
Amount for such Distribution Date for each Class of Group 1, Group 2, Group 3, Group 4, Group 5 and Class C-B Certificates shall be
reduced by the Trust Administrator by the related Class's pro rata share (based on the amount of the Interest Distribution Amount for
each such Class before reduction pursuant to this Section 4.01(I)(B)) of (i) Net Prepayment Interest Shortfalls for Mortgage Loans in
the related Loan Group for such Distribution Date and (ii) (A) after the Special Hazard Coverage Termination Date, with respect to
each Group 1, Group 2, Group 3, Group 4 and Group 5 Mortgage Loan, as applicable, that was the subject of Special Hazard Loss during
the prior calendar month, the excess of one month's interest at the related Net Mortgage Rate on the Stated Principal Balance of such
Mortgage Loan as of the Due Date in such month over the amount of Liquidation Proceeds applied as interest on such Mortgage Loan with
respect to such month, (B) after the Bankruptcy Coverage Termination Date, with respect to each Group 1, Group 2, Group 3, Group 4 or
Group 5 Mortgage Loan, as applicable, that became subject to a Bankruptcy Loss during the prior calendar month, the interest portion
of the related Debt Service Reduction or Deficient Valuation, (C) each Relief Act Reduction for any Group 1, Group 2, Group 3,
Group 4 or Group 5 Mortgage Loan, as applicable, incurred during the prior calendar month and (D) after the Fraud Loss Coverage
Termination Date, with respect to each Group 1, Group 2, Group 3, Group 4 or Group 5 Mortgage Loan, as applicable, that became a
Fraud Loan during the prior calendar month the excess of one month's interest at the related Net Mortgage Rate on the Stated
Principal Balance of such Mortgage Loan as of the Due Date in such month over the amount of Liquidation Proceeds applied as interest
on such Mortgage Loan with respect to such month. For purposes of calculating the reduction of the Interest Distribution Amount for
each Class of Class C-B Certificates with respect to Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4 or Loan Group 5 such
reduction shall be based on the amount of interest accruing at the Net WAC Rate for such Loan Group on such Class's proportionate
share, based on the Class Principal Balance of the related Subordinate Component Balance for that Distribution Date.
(C) With respect to each Class of Class C-B Certificates, if on any Distribution Date the related Subordination
Level of such Class is less than such percentage as of the Closing Date, no distribution of Principal Prepayments will be made to any
Class or Classes of Class C-B Certificates junior to such Class (the "Restricted Classes") and the amount otherwise distributable to
the Restricted Classes in respect of such Principal Prepayments will be allocated among the remaining Classes of Class C-B
Certificates, pro rata, based upon their respective Class Principal Balances.
(D) The Trust Administrator shall distribute the Mortgage Loan Purchase Price of any Optional Termination of
Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4 and Loan Group 5 in excess of the Par Value to the holder of the Class AR-L
Certificate.
(II) With respect to the Group 6 Certificates:
(a) On each Distribution Date or, in the case of payments to the Supplemental Interest Trust, on each Swap Payment Date, the
Trust Administrator shall distribute the Interest Remittance Amount for such date in the following order of priority:
(i) to the Supplemental Interest Trust for payment to the Swap Counterparty, an amount equal to the Swap Fee Amount and any Swap
Termination Payment not due to a Swap Counterparty Trigger Event for such Distribution Date and any Swap Termination
Payment not due to a Swap Counterparty Trigger Event remaining unpaid from a prior Swap Payment Date;
(ii) to the Group 6 Senior Certificates, pro rata based on amounts due, Current Interest and any Carryforward Interest for such
Class and such Distribution Date;
(iii) to the Class 6-M-1 Certificates, Current Interest and any Carryforward Interest for such Class and such Distribution Date;
(iv) to the Class 6-M-2 Certificates, Current Interest and any Carryforward Interest for such Class and such Distribution Date;
(v) to the Class 6-M-3 Certificates, Current Interest and any Carryforward Interest for such Class and such Distribution Date;
(vi) to the Class 6-M-4 Certificates, Current Interest and any Carryforward Interest for such Class and such Distribution Date;
and
(vii) for application as part of Monthly Excess Cashflow for such Distribution Date as provided in Section 4.01(II)(d), any
Interest Remittance Amount remaining for such Distribution Date.
(b) On each Distribution Date (A) prior to the Stepdown Date or (B) with respect to which a Trigger Event is in effect, the
Trust Administrator shall distribute the Principal Payment Amount for Loan Group 6 for such date in the following order of
priority:
(i) to the Supplemental Interest Trust for payment to the Swap Counterparty, any Swap Termination Payment not due to a Swap
Counterparty Trigger Event for such Swap Payment Date or remaining unpaid from any prior Swap Payment Date, to the
extent remaining unpaid after giving effect to the distributions of the Interest Remittance Amount set forth in
Section 4.01(II)(a) hereof for such Swap Payment Date;
(ii) to the Class 6-A-1 Certificates and Class 6-A-2 Certificates, pro rata based on their respective Class Principal Balances
immediately prior to such Distribution Date, until their respective Class Principal Balances have been reduced to
zero; provided, that, the Principal Payment Amount shall be paid to the Class 6-A-1 and Class 6-A-2 Certificates
sequentially, in that order, until their respective Class Principal Balances have been reduced to zero, if either
(a) on any Distribution Date prior to the Distribution Date in March 2009 cumulative Realized Losses are greater
than 1.00% of the Aggregate Loan Group Balance for Loan Group 6 as of the Cut-off Date or (b) on any Distribution
Date on or after the Distribution Date in March 2009 a Trigger Event is in effect;
(iii) to the Class 6-M-1 Certificates, until its Class Principal Balance has been reduced to zero;
(iv) to the Class 6-M-2 Certificates, until its Class Principal Balance has been reduced to zero;
(v) to the Class 6-M-3 Certificates, until its Class Principal Balance has been reduced to zero;
(vi) to the Class 6-M-4 Certificates, until its Class Principal Balance has been reduced to zero; and
(vii) for application as part of Monthly Excess Cashflow for such Distribution Date, as provided in Section 4.01(II)(d), any
Principal Payment Amount remaining after application pursuant to Section 4.01(II)(b)(i) through (vi) above.
(c) On each Distribution Date or, in the case of payments to the Supplemental Interest Trust, on each Swap Payment Date, (A) on
or after the Stepdown Date and (B) with respect to which a Trigger Event is not in effect, the Trust Administrator shall
distribute the Principal Payment Amount for Loan Group 6 for such date in the following order of priority:
(i) to the Supplemental Interest Trust for payment to the Swap Counterparty, any Swap Termination Payment not due to a Swap
Counterparty Trigger Event for such Swap Payment Date or remaining unpaid from any prior Swap Payment Date, to the
extent remaining unpaid after giving effect to the distributions of the Interest Remittance Amount set forth in
Section 4.01(II)(a) hereof for the related Distribution Date;
(ii) to the Class 6-A-1 Certificates and Class 6-A-2 Certificates, pro rata based on their respective Class Principal Balances
immediately prior to such Distribution Date, the sum of (1) the Group 6 Senior Principal Payment Amount and (2) the
component of the Principal Remittance Amount representing payments, if any, under the Group 6 Interest Rate Cap
Agreement to cover Realized Losses on the Group 6 Mortgage Loans, until their respective Class Principal Balances
have been reduced to zero;
(iii) to the Class 6-M-1 Certificates, the Class 6-M-1 Principal Payment Amount for such Distribution Date, until its Class
Principal Balance has been reduced to zero;
(iv) to the Class 6-M-2 Certificates, the Class 6-M-2 Principal Payment Amount for such Distribution Date, until the Class
Principal Balance of such Class has been reduced to zero;
(v) to the Class 6-M-3 Certificates, the Class 6-M-3 Principal Payment Amount for such Distribution Date, until the Class
Principal Balance of such Class has been reduced to zero;
(vi) to the Class 6-M-4 Certificates, the Class 6-M-4 Principal Payment Amount for such Distribution Date, until the Class
Principal Balance of such Class has been reduced to zero;
(vii) for application as part of Monthly Excess Cashflow for such Distribution Date, as provided in Section 4.01(II)(d), any
Principal Payment Amount remaining after application pursuant to Section 4.01(II)(c)(i) through (vi) above.
(d) On each Distribution Date or, in the case of payments to the Supplemental Interest Trust, on each Swap Payment Date, the
Trust Administrator shall distribute the Monthly Excess Cashflow for such date in the following order of priority:
(i) (A) until the aggregate Class Principal Balance of the Group 6 Certificates, other than the Class 6-X Certificates,
equals the Aggregate Loan Group Balance for Loan Group 6 for such Distribution Date minus the Targeted
Overcollateralization Amount for such date, on each Distribution Date (x) prior to the Stepdown Date or
(y) with respect to which a Trigger Event is in effect, to the extent of Monthly Excess Interest for such
Distribution Date, to the Group 6 Certificates, in the following order of priority:
(1) to the Class 6-A-1 Certificates and Class 6-A-2 Certificates, pro rata based on their respective Class Principal Balances
immediately prior to such Distribution Date, until their respective Class Principal Balances have been
reduced to zero:
(2) to the Class 6-M-1 Certificates, until its Class Principal Balance has been reduced to zero;
(3) to the Class 6-M-2 Certificates, until its Class Principal Balance has been reduced to zero;
(4) to the Class 6-M-3 Certificates, until its Class Principal Balance has been reduced to zero;
(5) to the Class 6-M-4 Certificates, until its Class Principal Balance has been reduced to zero; and
(B) on each Distribution Date (x) on or after the Stepdown Date and (y) with respect to which a Trigger Event is not in effect,
to fund any principal distributions required to be made on such Distribution Date set forth above in
Section 4.01(II)(c) above, after giving effect to the distribution of the Principal Payment Amount for Loan
Group 6 for such Distribution Date, in accordance with the priorities set forth therein;
(ii) to the Class 6-A-2 Certificates, any Deferred Amount for such Class;
(iii) to the Class 6-M-1 Certificates, any Deferred Amount for such Class;
(iv) to the Class 6-M-2 Certificates, any Deferred Amount for such Class;
(v) to the Class 6-M-3 Certificates, any Deferred Amount for such Class;
(vi) to the Class 6-M-4 Certificates, any Deferred Amount for such Class;
(vii) pro rata (a) to the Class 6-A-2 Certificates, any Basis Risk Shortfall for such class and (b) (i) on any Distribution Date
on which no Swap Suspension Event exists, to the Supplemental Interest Trust, the Swap Counterparty Reimbursement
Amount for such Distribution Date or remaining unpaid from any prior Distribution Date and (ii) on any Distribution
Date on which a Swap Suspension Event has occurred and is continuing, to the Class 6-A-1 Certificates, any Basis
Risk Shortfall for such class;
(viii) on any Distribution Date on which a Swap Suspension Event has occurred and is continuing, to the Supplemental Interest
Trust, the Swap Counterparty Reimbursement Amount for such Distribution Date or remaining unpaid from any prior
Distribution Date;
(ix) to the Class 6-M-1 Certificates, any Basis Risk Shortfall due and owing for such Class;
(x) to the Class 6-M-2 Certificates, any Basis Risk Shortfall due and owing for such Class;
(xi) to the Class 6-M-3 Certificates, any Basis Risk Shortfall due and owing for such Class;
(xii) to the Class 6-M-4 Certificates, any Basis Risk Shortfall due and owing for such Class;
(xiii) to the Supplemental Interest Trust for payment to the Swap Counterparty, any Swap Termination Payment due to a Swap
Counterparty Trigger Event for such Distribution Date or remaining unpaid from any prior Distribution Date;
(xiv) to the Class 6-X Certificates, the Class 6-X Distributable Amount for such Distribution Date; and
(xv) to the Class AR Certificates, any remaining amount; provided, however, that any amount that would be distributable pursuant
to this priority (xiv) shall not be paid with respect to the Class AR Certificates but shall be paid instead with
respect to the Class 6-X Certificates pursuant to a contract that exists under this Agreement between the Class AR
Certificateholders and the Class 6-X Certificateholders.
(e) The Trust Administrator shall distribute the Mortgage Loan Purchase Price of any Optional Termination of Loan Group 6 in
excess of the Par Value to the holder of the Class AR-L Certificate.
(III) (a) Prior to the distributions described in Sections 4.01(I) and (II), the following distributions
shall be deemed to have been made:
(i) from REMIC I to REMIC III, as the holder of the REMIC I Regular Interests, and to Holders
of the Class AR-L Certificates in respect of Component I thereof, from the REMIC I Available Distribution Amount,
the REMIC I Distribution Amount in the amounts, from the sources and with the character set forth in the definition
thereof in respect of the REMIC I Regular Interests and Component I of the Class AR-L Certificates as set forth
therein; and
(ii) from REMIC II to REMIC III, as the holder of the REMIC II Regular Interests, and to
Holders of the Class AR-L Certificates in respect of Component II thereof, from the REMIC II Available Distribution
Amount, the REMIC II Distribution Amount in the amounts, from the sources and with the character set forth in the
definition thereof in respect of the REMIC II Regular Interests and Component II of the Class AR-L Certificates as
set forth therein.
(b) Notwithstanding the distributions on the REMIC Regular Interests described in this
Section 4.01(III), distribution of funds from the Certificate Account shall be made only in accordance with Sections 4.01(I)
and (II).
(IV) On each Distribution Date, the Trustee shall distribute to the Holder of the Class P Certificates, the
aggregate of all Assigned Prepayment Premiums for Mortgage Loans collected or paid by each applicable Servicer with respect to the
related Prepayment Period.
SECTION 4.02. Allocation of Losses.
(a) Realized Losses on the Mortgage Loans in each of Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4 and Loan Group 5
incurred during a calendar month shall be allocated by the Trust Administrator to the Classes of Certificates on the Distribution
Date in the next calendar month as follows:
(i) any Realized Loss, other than an Excess Loss, shall be allocated first, to the Class C-B Certificates, in decreasing order
of their alphanumerical Class designations (beginning with the Class C-B-9 Certificates), until the respective Class
Principal Balance of each such Class has been reduced to zero, and second, to the Senior Certificates of the related
Certificate Group, pro rata, on the basis of their respective Class Principal Balances, until the respective Class Principal
Balance of each such Class has been reduced to zero; provided, however, with respect to the Group 1 Certificates, Realized
Losses on the Group 1 Loans that would otherwise be allocated to the Class 1-A-2 Certificates and Class 1-A-3 Certificates
in the aggregate will instead be allocated first, to the Class 1-A-3 Certificates, until its Class Principal Balance has
been reduced to zero, and second, to the Class 1-A-2 Certificates, until its Class Principal Balance has been reduced to
zero, with respect to the Group 2 Certificates, Realized Losses on the Group 2 Loans that would otherwise be allocated to the
Class 2-A-1 Certificates and Class 2-A-2 Certificates in the aggregate will instead be allocated first, to the Class 2-A-2
Certificates, until its Class Principal Balance has been reduced to zero, and second, to the Class 2-A-1 Certificates, until
its Class Principal Balance has been reduced to zero, with respect to the Group 3 Certificates, Realized Losses on the
Group 3 Loans that would otherwise be allocated to the Class 3-A-1 Certificates and Class 3-A-2 Certificates in the aggregate
will instead be allocated first, to the Class 3-A-2 Certificates, until its Class Principal Balance has been reduced to
zero, and second, to the Class 3-A-1 Certificates, until its Class Principal Balance has been reduced to zero, and Realized
Losses on the Group 3 Loans that would otherwise be allocated to the Class 3-A-3 Certificates and Class 3-A-4 Certificates
in the aggregate will instead be allocated first, to the Class 3-A-4 Certificates, until its Class Principal Balance has
been reduced to zero, and second, to the Class 3-A-3 Certificates, until its Class Principal Balance has been reduced to
zero, with respect to the Group 4 Certificates, Realized Losses on the Group 4 Loans that would otherwise be allocated to
the Class 4-A-1 Certificates and Class 4-A-2 Certificates in the aggregate will instead be allocated first, to the
Class 4-A-2 Certificates, until its Class Principal Balance has been reduced to zero and second, to the Class 4-A-1
Certificates, until its Class Principal Balance has been reduced to zero, and with respect to the Group 5 Certificates,
Realized Losses on the Group 5 Loans that would otherwise be allocated to the Class 5-A-1 Certificates and Class 5-A-2
Certificates in the aggregate will instead be allocated first, to the Class 5-A-2 Certificates, until its Class Principal
Balance has been reduced to zero and second, to the Class 5-A-1 Certificates, until its Class Principal Balance has been
reduced to zero; and
(ii) Excess Losses in respect of principal for Mortgage Loans in Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4 and Loan
Group 5 will be allocated among all Group 1, Group 2, Group 3, Group 4, Group 5 and Class C-B Certificates, pro rata based
on their respective Class Principal Balances.
(b) On each Distribution Date, if the aggregate Class Principal Balance of all Group 1, Group 2, Group 3, Group 4, Group 5 and
Class C-B Certificates exceeds the Aggregate Groups 1-5 Collateral Balance (after giving effect to distributions of principal and the
allocation of all losses to such Certificates on such Distribution Date), such excess will be deemed a principal loss and will be
allocated by the Trust Administrator to the most junior Class of Class C-B Certificates then outstanding.
(c) Any Realized Loss allocated to a Class of Certificates or any reduction in the Class Principal Balance of a Class of
Certificates pursuant to Section 4.02(b) shall be allocated by the Trust Administrator among the Certificates of such Class in
proportion to their respective Certificate Balances.
(d) Any allocation by the Trust Administrator of Realized Losses to a Certificate or any reduction in the Certificate Balance of
a Certificate pursuant to Section 4.02(b) shall be accomplished by reducing the Certificate Balance thereof, immediately following
the distributions made on the related Distribution Date in accordance with the definition of "Certificate Balance."
(e) On each Distribution Date, the Trust Administrator shall determine the total Applied Loss Amount with respect to the Group 6
Certificates, if any, for such Distribution Date. The Applied Loss Amount with respect to the Group 6 Certificates for any
Distribution Date shall be applied by reducing the Class Principal Balance of each Class of Class M Certificates and the Class 6-A-2
Certificates, beginning with the Class of Class M Certificates, then outstanding with the lowest relative payment priority, or if no
Class M Certificates are then outstanding, the Class 6-A-2 Certificates, in each case until the respective Class Principal Balance
thereof has been reduced to zero. Any Applied Loss Amount with respect to the Group 6 Certificates allocated to a Class of Class M
Certificates or Class 6-A-2 Certificates shall be allocated among the Class M Certificates of such Class or the Class 6-A-2
Certificates, as applicable, in proportion to their respective Percentage Interests.
(f) All Realized Losses on the Group 1, Group 2, Group 3, Group 4 and Group 5 Mortgage Loans shall be allocated on each
Distribution Date to the REMIC I Regular Interests as provided in the definition of REMIC I Realized Losses.
(g) All Realized Losses on the Group 6 Mortgage Loans shall be allocated on each Distribution Date to the REMIC II Regular
Interests as provided in the definition of REMIC II Realized Losses.
(h) Realized Losses on the Group 6 Mortgage Loans that are not Applied Loss Amounts shall be deemed allocated to the Class 6-X
Certificates. Realized Losses allocated to the Class 6-X Certificates shall be allocated between REMIC III Regular Interests 6-X-IO
and 6-X-PO as provided in the definition of Realized Losses.
SECTION 4.03. Recoveries.
(a) With respect to any Class of Certificates to which a Realized Loss or Applied Loss Amount, as applicable, has been allocated
(including any such Class for which the related Class Principal Balance has been reduced to zero), the Class Principal Balance of
such Class will be increased, up to the amount of related Recoveries for such Distribution Date as follows:
(i) with respect to Recoveries on Group 1, Group 2, Group 3, Group 4 and Group 5, Mortgage Loans,
(A) first, the Class Principal Balance of each Class of Senior Certificates related to the Loan Group from which the Recovery
was collected, will be increased pro rata, up to the amount of Net Recovery Realized Losses for each such Class, and
(B) second, the Class Principal Balance of each Class of Class C-B Certificates will be increased in order of seniority, up to
the amount of Net Recovery Realized Losses for each such Class; or
(ii) with respect to Recoveries on Group 6 Mortgage Loans, the Class Principal Balance of the Class 6-A-2 Certificates and each
Class of Class M Certificates will be increased in order of seniority, up to the Deferred Amount such Class is entitled to
receive pursuant to Section 4.01(II)(d) on such Distribution Date prior to giving effect to payments pursuant to
Section 4.01(II)(d) on such Distribution Date.
(b) Any increase to the Class Principal Balance of a Class of Certificates shall increase the Certificate Balance of the related
Class pro rata in accordance with each Certificate Percentage Interest.
SECTION 4.04. Reserved.
SECTION 4.05. Monthly Statements to Certificateholders.
(a) Not later than each Distribution Date, the Trust Administrator shall prepare and cause to be made available to each
Certificateholder, the Master Servicer, each Servicer, the Trustee, the Depositor, the Swap Counterparty and each Rating Agency, a
statement setting forth with respect to the related distribution: the items listed in Exhibit T, other than items (vi)(a), (vi)(b),
(vi)(c) and (vi)(d).
The Trust Administrator's responsibility for disbursing the above information to the Certificateholders is limited
to the availability, timeliness and accuracy of the information derived from the Master Servicer and each Servicer, which shall be
provided as required in Section 4.06.
On each Distribution Date, the Trust Administrator shall provide Bloomberg Financial Markets, L.P. ("Bloomberg")
CUSIP level factors for each Class of Offered Certificates as of such Distribution Date, using a format and media mutually acceptable
to the Trust Administrator and Bloomberg. In connection with providing the information specified in this Section 4.05 to Bloomberg,
the Trust Administrator and any director, officer, employee or agent of the Trust Administrator shall be indemnified and held
harmless by DLJMC, to the extent, in the manner and subject to the limitations provided in Section 9.05. The Trust Administrator
will also make the monthly statements to Certificateholders available each month to each party referred to in Section 4.05(a) via the
Trust Administrator's website. The Trust Administrator's website can be accessed at xxxx://xxx.xxxxxxx.xxx or at such other site as
the Trust Administrator may designate from time to time. Persons that are unable to use the above website are entitled to have a
paper copy mailed to them via first class mail by calling the Trust Administrator at 000-000-0000. The Trust Administrator shall
have the right to change the way the reports referred to in this Section are distributed in order to make such distribution more
convenient and/or more accessible to the above parties and to the Certificateholders. The Trust Administrator shall provide timely
and adequate notification to all above parties and to the Certificateholders regarding any such change. The Trust Administrator may
fully rely upon and shall have no liability with respect to information provided by the Master Servicer or any Servicer.
(b) Upon request, within a reasonable period of time after the end of each calendar year, the Trust Administrator shall cause to
be furnished to each Person who at any time during the calendar year was a Certificateholder, a statement containing the information
set forth in items (i)(c), (i)(d), (i)(g), (i)(j), (i)(k), (ii)(c), (ii)(d), (ii)(g), (ii)(j), (v)(a), (v)(b), (v)(l), (v)(m) and
(v)(n) of Exhibit T 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 in effect.
SECTION 4.06. Servicer to Cooperate.
Each Servicer shall provide to the Master Servicer the information set forth in Exhibit H, and any other information
the Master Servicer requires, in such form as the Master Servicer shall reasonably request, or in such form as may be mutually agreed
upon between such Servicer and the Master Servicer, with respect to each Mortgage Loan serviced by such Servicer no later than
(i) with respect to a Servicer other than Xxxxx Fargo, twelve noon on the Data Remittance Date, and (ii) with respect to Xxxxx Fargo,
on the Data Remittance Date, to enable the Master Servicer to provide such information to the Trust Administrator.
The Master Servicer, with respect to the Mortgage Loans, shall provide to the Trust Administrator the information
set forth in Exhibit H in such form as the Trust Administrator shall reasonably request no later than twelve noon on the Data
Remittance Date to enable the Trust Administrator to calculate the amounts to be distributed to each Class of Certificates and
otherwise perform its distribution, accounting and reporting requirements hereunder.
SECTION 4.07. Cross-Collateralization; Adjustments to Available Funds.
(a) On each Distribution Date prior to the Class C-B Credit Support Depletion Date, but after the date on which the aggregate
Class Principal Balance of the Group 1, Group 2, Group 3, Group 4 or Group 5 Certificates has been reduced to zero, the Trust
Administrator shall distribute the principal portion of Available Distribution Amount on the Mortgage Loans relating to such Senior
Certificates that will have been paid in full, to the holders of the Senior Certificates of the other Certificate Group(s). Such
amount will be allocated between the other Groups, pro rata, based on aggregate Class Principal Balance of the related Senior
Certificates and paid the Senior Certificates in each such Group in the same priority as such Certificates would receive other
distributions of principal pursuant to Section 4.01(I)(A); provided, however, that the Trust Administrator shall not make such
distribution on such Distribution Date if (a) the Class C-B Percentage for such Distribution Date is greater than or equal to 200% of
such Class C-B Percentage as of the Closing Date and (b) the average outstanding principal balance of the Mortgage Loans in each Loan
Group delinquent 60 days or more over the last six months, as a percentage of the related Subordinate Component Balance, is less than
50%.
(b) If on any Distribution Date the aggregate Class Principal Balance of the Group 1, Group 2, Group 3, Group 4 or Group 5
Certificates is greater than the Aggregate Loan Group Balance of the related Loan Group (each Loan Group related to such Group of
Certificates, an "Undercollateralized Group"), then the Trust Administrator shall reduce the Available Distribution Amount of the
other Loan Group(s) that is not undercollateralized (each, an "Overcollateralized Group"), as follows:
(1) to add to the Available Distribution Amount of the Undercollateralized Group(s) an amount equal to the lesser of (a) one
month's interest on the Principal Transfer Amount of the Undercollateralized Group(s) at the Net WAC Rate applicable to the
Undercollateralized Group(s) and (b) Available Distribution Amount of the Overcollateralized Groups remaining after making
interest distributions to the Senior Certificates of the Overcollateralized Group(s) on such Distribution Date pursuant to
Section 4.01; and
(2) to the Senior Certificates of each Undercollateralized Group, to the extent of the principal portion of Available
Distribution Amount of the Overcollateralized Group(s) remaining after making interest and principal distributions to the
Senior Certificates of the Overcollateralized Group(s) on such Distribution Date pursuant to Section 4.01, until the Class
Principal Balance of the Senior Certificates of such Undercollateralized Group(s) equals the Aggregate Loan Group Balance of
the related Loan Group(s). Payments shall be made to the Senior Certificates in each Group in the same priority as such
Certificates would receive other distributions of principal pursuant to Section 4.01(I)(A).
(c) If more than one Overcollateralized Group exists on any Distribution Date, reductions in the Available Distribution Amount
of such Groups to make the payments required to be made pursuant to Section 4.07(b) on such Distribution Date shall be made pro rata,
based on the Overcollateralization Amount of each Overcollateralized Group. If more than one Undercollateralized Group exists on any
Distribution Date, payments made to such Groups from the Available Distribution Amount of the Overcollateralized Group shall be made
pro rata, based on the amount of payments required to be made to the Undercollateralized Group(s).
SECTION 4.08. Reserved.
SECTION 4.09. Reserved.
SECTION 4.10. Group 6 Interest Rate Cap Account.
(a) On the Closing Date, the Trust Administrator shall establish and maintain in its name, in trust for the benefit of the
Holders of the Class 6-X Certificates, the Group 6 Interest Rate Cap Account. The Group 6 Interest Rate Cap 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 held by the Trust Administrator pursuant to this Agreement.
(b) On each Distribution Date on and after the Distribution Date in March 2006 and on and prior to the Distribution Date in
December 2010, the Trust Administrator shall deposit any amounts paid under the Group 6 Interest Rate Cap Agreement into the Group 6
Interest Rate Cap Account. On each Distribution Date on and after the Distribution Date in March 2006 and on and prior to the
Distribution Date in December 2010, the Trust Administrator shall distribute amounts on deposit in the Group 6 Interest Rate Cap
Account to pay to the Group 6 Certificates, any applicable Basis Risk Shortfalls, prior to giving effect to any amounts available to
be paid in respect of related Basis Risk Shortfalls as described in Section 4.01(II)(d)(vi) on such Distribution Date.
(c) On any Distribution Date or, in the case of payments to the Supplemental Interest Trust, on each Swap Payment Date, amounts
on deposit in the Group 6 Interest Rate Cap Account shall be distributed in the following order of priority:
(i) to the Supplemental Interest Trust for payment to the Swap Counterparty, an amount equal to any Swap Fee Reimbursement
Amount for such Swap Payment Date or remaining unpaid from any prior Swap Payment Date;
(ii) pro rata (a) to the Class 6-A-2 Certificates, any unpaid Basis Risk Shortfall for such class and (b) (i) on any Distribution
Date on which no Swap Suspension Event exists, to the Supplemental Interest Trust for payment to the Swap Counterparty, the
Swap Counterparty Reimbursement Amount for such Distribution Date or remaining unpaid from any prior Distribution Date and
(ii) on any Distribution Date on which a Swap Suspension Event has occurred and is continuing, to the Class 6-A-1
Certificates, any unpaid Basis Risk Shortfall for such class;
(iii) on any Distribution Date on which a Swap Suspension Event has occurred and is continuing, to the to the Supplemental
Interest Trust, the Swap Counterparty Reimbursement Amount for such Distribution Date or remaining unpaid from any prior
Distribution Date;
(iv) sequentially, to the Class 6-M-1, Class 6-M-2, Class 6-M-3 and Class 6-M-4 Certificates, in that order, the amount of any
unpaid Basis Risk Shortfalls for such Class;
(v) to the Principal Remittance Amount, up to the amount of Realized Losses on the Mortgage Loans in such Loan Group incurred
during the related Collection Period, any shortfall to be allocated pro rata based upon the amount of such Realized Losses
applicable to such Loan Group; and
(vi) sequentially, to the Class 6-A-2, Class 6-M-1, Class 6-M-2, Class 6-M-3, and Class 6-M-4 Certificates, in that order, any
applicable Deferred Amounts, with interest therein at the applicable Pass-Through Rate, prior to giving effect to amounts
available to be paid in respect of Deferred Amounts as described in Section 4.01(II)(d)(ii)-(vi) on such Distribution Date.
(d) Funds in the Group 6 Interest Rate Cap Account may be invested in Eligible Investments by the Trust Administrator at the
direction of the Depositor maturing on or prior to the next succeeding Distribution Date. The Trust Administrator shall account for
the Group 6 Interest Rate Cap Account as an outside reserve fund within the meaning of Treasury regulation 1.860G-2(h) and not an
asset of any REMIC created pursuant to this Agreement. The Trust Administrator shall treat amounts paid from the Group 6 Interest
Rate Cap Account as payments made from outside the REMICs for all Federal tax purposes. Any net investment earnings on such amounts
shall be payable to the Depositor. The Depositor will be the owner of the Group 6 Interest Rate Cap Account for federal tax purposes
and the Depositor shall direct the Trust Administrator in writing as to the investment of amounts therein. In the absence of such
written direction, all funds in the Group 6 Interest Rate Cap Account may be invested by the Trust Administrator in the Xxxxx Fargo
Advantage Prime Investment Money Market Fund or any successor fund. The Trust Administrator shall have no liability for losses on
investments in Eligible Investments made pursuant to this Section 4.10(c) (other than as obligor on any such investments). Upon
termination of the Trust Fund, any amounts remaining in the Group 6 Interest Rate Cap Account shall be distributed to the Class 6-X
Certificateholders.
(e) On the Distribution Date immediately after the Distribution Date on which the aggregate Class Principal Balance of the Group
6 Certificates equals zero, any amounts on deposit in the Group 6 Interest Rate Cap Account not payable on the Group 6 Certificates
shall be distributed to the Class 6-X Certificateholders.
(f) Amounts paid under the Group 6 Interest Rate Cap Agreement not used on any Distribution Date as described in
Section 4.10(b) shall remain on deposit in the Group 6 Interest Rate Cap Account and may be available on future Distribution Dates to
make the payments described in Section 4.10(b). However, at no time shall the amount on deposit in the Group 6 Interest Rate Cap
Account exceed the related Deposit Amount. The "Deposit Amount" with respect to the Group 6 Interest Rate Cap Account will be
calculated on each Distribution Date, after giving effect to withdrawals from the Group 6 Interest Rate Cap Account on such
Distribution Date and distributions and allocation of losses on the Certificates on such Distribution Date, and will equal the
excess, if any, of the Targeted Overcollateralization Amount for such Distribution Date over the Overcollateralization Amount for
such Distribution Date. On each Distribution Date, the Trust Administrator shall distribute amounts in the Group 6 Interest Rate Cap
Account in excess of the related Deposit Amount to the Class 6-X Certificateholders.
(g) The Trustee is hereby directed, on or prior to the Closing Date, on behalf of the Trust, to enter into the Group 6 Interest
Rate Cap Agreement for the benefit of the Holders of the Group 6 Certificates, in the form presented to it by the Depositor. The
Trustee shall not have any responsibility for the contents, adequacy or sufficiency of the Group 6 Interest Rate Cap Agreement,
including, without limitation, any representations and warranties contained therein. The Trust Administrator shall administer, hold,
and receive and make all payments under the Group 6 Interest Rate Cap Agreement on behalf of the Trust and the Trustee in accordance
with its terms and the provisions of this Agreement.
(h) Upon receipt from the Trust Administrator of notice of the failure by the Group 6 Interest Rate Cap Counterparty to make,
when due, any Transfer of Eligible Collateral, Posted Collateral or the Interest Amount (as such terms are defined in the Group 6
Interest Rate Cap Agreement), the Trustee shall deliver to the Group 6 Interest Rate Cap Counterparty the notice contemplated by
Paragraph 7(i) of the Credit Support Annex attached to the Group 6 Interest Rate Cap Agreement of the Group 6 Interest Rate Cap
Counterparty's failure to do so. The Trustee shall deliver such notice no later than 1:00 p.m. eastern time on the Business Day
immediately following any such failure by the Group 6 Interest Rate Cap Counterparty.
SECTION 4.11. Supplemental Interest Trust.
(a) A separate trust is hereby established (the "Supplemental Interest Trust"), the corpus of which shall be held by the
Supplemental Interest Trust Trustee, in trust, for the benefit of the holders of the Class 6-A-1 Certificates. On the Closing Date,
the Supplemental Interest Trust Trustee shall establish and maintain in its name, a separate account for the benefit of the holders
of the Class 6-A-1 Certificates (the "Supplemental Interest Account"). The Supplemental Interest 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 Trust Administrator held pursuant to this Agreement.
(b) The Trust Administrator shall deposit into the Supplemental Interest Account the amounts set forth in Section 4.01(II)(a),
(b), (c) and (d). The Supplemental Interest Trust Trustee shall deposit into the Supplemental Interest Account any Net Swap Payments
received from the Swap Counterparty. On any Swap Payment Date on which a Net Swap Payment is owed to the Swap Counterparty, the
Supplemental Interest Trust Trustee shall withdraw from the Supplemental Interest Account an amount equal to such Net Swap Payment
and pay such amount to the Swap Counterparty. On each Swap Payment Date on which a Net Swap Payment is owed to the Trust Fund, the
Supplemental Interest Trust Trustee shall withdraw from the Supplemental Interest Account an amount equal to such Net Swap Payment
and pay such amount to the Trust Fund for distribution on the related Distribution Date in accordance with the provisions of
subparagraph (f) of this Section 4.11.
(c) Funds in the Supplemental Interest Account shall be invested in Eligible Investments, which shall mature not later than the
Business Day of the Swap Payment Date. The Depositor shall direct the Supplemental Interest Trust Trustee in writing as to the
investment of amounts in the Supplemental Interest Account. In the absence of such written direction, all funds in the Supplemental
Interest Account may be invested by the Supplemental Interest Trust Trustee in the Xxxxx Fargo Advantage Prime Money Market Fund or
any successor fund. The Supplemental Interest Trust Trustee shall have no liability for losses an investments in Eligible
Investments made pursuant to this Section 4.11(c) (other than as obligor on any such investments). Any earnings on such amounts
shall be distributed on each Distribution Date pursuant to paragraph (f) of this Section 4.11.
(d) Upon termination of the Trust Fund and after payment of any moneys to the holders of the Class 6-A-1 Certificates as
provided in paragraph (f) of this Section 4.11, any amounts remaining in the Supplemental Interest Account after payment of amounts
owing to the Swap Counterparty shall be distributed to the holder of the Class 6-X Certificates.
(e) The Trust Administrator is hereby directed, as Supplemental Interest Trust Trustee, and not in its individual capacity, on
or prior to the Closing Date, on behalf of the Supplemental Interest Trust, to enter into and assume the obligations under the Swap
Agreement with the Swap Counterparty for the benefit of the Holders of the Class 6-A-1 Certificates, in the form presented to it by
the Depositor. Neither the Trust Administrator nor the Supplemental Interest Trust Trustee shall, individually or personally, have
any liability to perform any covenant either express or implied contained in the Swap Agreement and under no circumstance shall the
Trust Administrator be personally liable for the payment of any amounts payable by the Supplemental Interest Trust under the Swap
Agreement or any expenses of the Supplemental Interest Trust or be liable for the breach or failure of any obligation,
representation, warranty or covenant made or undertaken by the Supplemental Interest Trust under the Swap Agreement. None of the
Master Servicer, Trustee, Trust Administrator or Supplemental Interest Trust Trustee shall have a duty to review or otherwise
determine the adequacy of the Swap Agreement (or any amendment or supplement thereto).
(f) On each Distribution Date, the Trust Administrator shall distribute any amounts it receives from the Supplemental Interest
Account to pay to the holders of the Class 6-A-1 Certificates an amount equal to the product of (a) the difference between the
Formula Rate for the Class 6-A-1 Certificates for such Distribution Date and the Net Funds Cap for such Distribution Date, (b) a
fraction, the numerator of which is the actual number of days elapsed in the related Calculation Period and the denominator of which
is 360, and (c) the Swap Notional Amount. Any amounts in the Supplemental Interest Account relating to such Net Swap Payment
remaining after distribution to the holders of the Class 6-A-1 Certificates shall be distributed to the holders of the Class 6-X
Certificates. On any Distribution Date, any amounts that the Trust Administrator receives from the Supplemental Interest Account at
any time since the immediately preceding Distribution Date in respect of Net Swap Payments owed by the Swap Counterparty on prior
related Swap Payment Dates shall be, first, distributed to the holders of the Class 6-A-1 Certificates in reduction of any Basis Risk
Shortfalls for such Class, until the amount of any Basis Risk Shortfalls due and owing for such Class and, second, distributed to the
holders of the Class 6-X Certificates.
(g) The Supplemental Interest Trust Trustee shall deliver to the Swap Counterparty the notice contemplated by Paragraph 7(i) of
the Credit Support Annex attached to the Swap Agreement if the Swap Counterparty fails to make, when due, any Transfer of Eligible
Collateral, Posted Collateral or the Interest Amount (as such terms are defined in the Swap Agreement) required to be made by the
Swap Counterparty. The Supplemental Interest Trust Trustee shall deliver such notice no later than 1:00 p.m. eastern time on the
Business Day immediately following any such failure by the Swap Counterparty.
SECTION 4.12. Rights of Swap Counterparty.
(a) The Swap Counterparty 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 its rights under this Agreement, which rights include but are not limited to, the
obligation of the Supplemental Interest Trust Trustee (A) to deposit any Net Swap Payment required to be paid by the Supplemental
Interest Trust and any Swap Termination Payment required pursuant to Section 4.01 into the Supplemental Interest Account and (B) to
establish and maintain the Supplemental Interest Account, to make such deposits thereto, investments therein and distributions
therefrom as are required pursuant to Section 4.11. For the protection and enforcement of the provisions of this Section, the Swap
Counterparty shall be entitled to relief as can be given either at law or in equity.
SECTION 4.13. Replacement Swap Counterparty.
(a) In the event that the Supplemental Interest Trust Trustee, on behalf of the Supplemental Interest Trust, and at the
direction of the Depositor, enters into a replacement interest rate swap agreement with a replacement swap counterparty (the
"Replacement Swap Counterparty"), then (a) to the extent that the Supplemental Interest Trust would be required to make a Swap
Termination Payment to the Swap Counterparty and (b) to the extent the Replacement Swap Counterparty pays to assume the rights and
obligations of the Swap Counterparty under the Swap Agreement (the "Replacement Payment"), the Supplemental Interest Trust Trustee,
on behalf of the Supplemental Interest Trust, and the Swap Counterparty agree that such Replacement Payment shall be paid to the Swap
Counterparty and shall, only to the extent actually paid by the Replacement Swap Counterparty to the Swap Counterparty, constitute
satisfaction in full of the obligations of the Supplemental Interest Trust to the Swap Counterparty in respect of the assignment of
the outstanding transaction under the Swap Agreement to the Replacement Swap Counterparty or the replacement of such transaction with
the Replacement Swap Counterparty. In addition, upon termination of the Swap Counterparty and to the extent that the Swap
Counterparty would be required to make a Swap Termination Payment to the Supplemental Interest Trust, such Swap Termination Payment
shall be deposited into the Supplement Interest Account and shall be used to make any upfront payment required to be made to a
Replacement Swap Counterparty.
(b) Notwithstanding anything to the contrary contained herein, in the event that a replacement swap agreement is not obtained
within 30 days after receipt by the Trust Administrator of the Swap Termination Payment paid by the terminated Swap Counterparty, the
Trust Administrator shall deposit such Swap Termination Payment into the Supplemental Interest Account and the Trust Administrator
shall, on each Distribution Date, withdraw from such Supplemental Interest Account, an amount equal to the Net Swap Payment, if any,
that would have been paid to the Supplemental Interest Trust by the original Swap Counterparty (computed in accordance with the terms
of the original Swap Agreement) and distribute such amount in accordance with Section 4.01 of this Agreement.
ARTICLE V
ADVANCES BY THE MASTER SERVICER AND SERVICERS
SECTION 5.01. Advances by the Master Servicer and Servicers.
With respect to the Non-Designated Mortgage Loans, each Servicer shall deposit in the related Collection Account as
Advances an amount equal to all Scheduled Payments (with interest at the Mortgage Rate less the Servicing Fee Rate) which were due on
such Non-Designated Mortgage Loans serviced by it during the applicable Collection Period and which were delinquent at the close of
business on the immediately preceding Determination Date; provided, however, that with respect to any Balloon Loan that is delinquent
on its maturity date, a Servicer will not be required to advance the related balloon payment but will be required to continue to make
Advances in accordance with this Section 5.01 with respect to such Balloon Loan in an amount equal to an assumed scheduled payment
that would otherwise be due based on the original amortization schedule for that Mortgage Loan (with interest at the Mortgage Rate
less the Servicing Fee Rate). Each Servicer's obligation to make such Advances as to any related Non-Designated Mortgage Loan will
continue through the last Scheduled Payment due prior to the payment in full of such Non-Designated Mortgage Loan, or through the
date that the related Mortgaged Property has, in the judgment of the related Servicer, been completely liquidated. Each Servicer
shall not be required to advance shortfalls of principal or interest resulting from the application of the Relief Act.
With respect to any Non-Designated Mortgage Loan, to the extent required by Accepted Servicing Practices, the Master
Servicer and each Servicer shall be obligated to make Advances in accordance with the provisions of this Agreement; provided,
however, that such obligation with respect to any related Non-Designated Mortgage Loan shall cease if the Master Servicer or a
Servicer determines, in its reasonable opinion, that Advances with respect to such Non-Designated Mortgage Loan are Nonrecoverable
Advances. In the event that the Master Servicer or such Servicer determines that any such Advances are Nonrecoverable Advances, the
Master Servicer or such Servicer shall provide the Trust Administrator with a certificate signed by a Servicing Officer evidencing
such determination.
With respect to any Non-Designated Mortgage Loan, if the amount of Advances received from a Servicer is less than
the amount required to be advanced by such Servicer, the Master Servicer shall be obligated to make a payment in an amount equal to
such deficiency, subject to any determination by the Master Servicer that any portion of the amount required to be advanced is a
Nonrecoverable Advance.
With respect to any of the Non-Designated Mortgage Loans, if an Advance is required to be made hereunder by a
Servicer, such Servicer shall on the Cash Remittance Date either (i) deposit in the Collection Account from its own funds an amount
equal to such Advance, (ii) cause to be made an appropriate entry in the records of the Collection Account that funds in such account
being held for future distribution or withdrawal have been, as permitted by this Section 5.01, used by such Servicer to make such
Advance or (iii) make Advances in the form of any combination of clauses (i) and (ii) aggregating the amount of such Advance. Any
such funds being held in a Collection Account for future distribution and so used shall be replaced by such Servicer from its own
funds by deposit in such Collection Account on or before any future Distribution Date in which such funds would be due or from other
funds in such Collection Account being held for future distribution at that time.
With respect to any Designated Mortgage Loan, the Master Servicer shall make Advances as required by
Section 3.20(b) of this Agreement.
ARTICLE VI
THE CERTIFICATES
SECTION 6.01. The Certificates.
The Certificates shall be in substantially the forms set forth in Xxxxxxxx X, X, X, X-0, X-0, E, F and G hereto,
with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Agreement or as
may in the reasonable judgment of the Trust Administrator or the Depositor be necessary, appropriate or convenient to comply, or
facilitate compliance, with applicable laws, and may have such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required to comply with the rules of any securities exchange on which any of the Certificates
may be listed, or as may, consistently herewith, be determined by the officers executing such Certificates, as evidenced by their
execution thereof.
Subject to Section 11.03 respecting the final distribution on the Certificates, on each Distribution Date the Trust
Administrator shall make distributions to each Certificateholder of record on the preceding Record Date either (x) by wire transfer
in immediately available funds to the account of such holder at a bank or other entity having appropriate facilities therefor, if
(i) such Holder has so notified the Trust Administrator at least five Business Days prior to the related Record Date and (ii) such
Holder shall hold (A) a Notional Amount Certificate, (B) 100% of the Class Principal Balance of any Class of Certificates or
(c) Certificates of any Class with aggregate principal Denominations of not less than $1,000,000 or (y) by check mailed by first class
mail to such Certificateholder at the address of such holder appearing in the Certificate Register.
The definitive Certificates shall be printed, typewritten, lithographed or engraved or produced by any combination
of these methods or may be produced in any other manner permitted by the rules of any securities exchange on which any of the
Certificates may be listed, all as determined by the officers executing such Certificates, as evidenced by their execution thereof.
The Certificates shall be issuable in registered form, in the minimum denominations, integral multiples in excess
thereof (except that one Certificate in each Class may be issued in a different amount which must be in excess of the applicable
minimum denomination) and aggregate denominations per Class set forth in the Preliminary Statement.
The Certificates shall be executed by manual or facsimile signature on behalf of the Trust Administrator by a
Responsible Officer. Certificates bearing the manual or facsimile signatures of individuals who were, at the time when such
signatures were affixed, authorized to sign on behalf of the Trust Administrator shall bind the Trust Administrator, notwithstanding
that such individuals or any of them have ceased to be so authorized prior to the authentication and delivery of such Certificates or
did not hold such offices at the date of such Certificate. 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 executed by the Trust
Administrator by manual signature, and such certificate of authentication upon any Certificate 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.
SECTION 6.02. Registration of Transfer and Exchange of Certificates.
(a) The Trust Administrator shall maintain, or cause to be maintained, a Certificate Register 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. Upon surrender for registration of transfer of any Certificate, the
Trust Administrator shall execute, authenticate and deliver, in the name of the designated transferee or transferees, one or more new
Certificates in like aggregate interest and of the same Class.
(b) At the option of a Certificateholder, Certificates may be exchanged for other Certificates of authorized denominations and
the same aggregate interest in the Trust Fund and of the same Class, upon surrender of the Certificates to be exchanged at the office
or agency of the Trust Administrator set forth in Section 6.06. 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 registration of transfer or exchange shall be accompanied by a written
instrument of transfer in form satisfactory to the Trust Administrator duly executed by the Holder thereof or his attorney duly
authorized in writing.
(c) No service charge to the Certificateholders shall be made for any registration of transfer or exchange of Certificates, but
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 may be required.
(d) All Certificates surrendered for registration of transfer and exchange shall be canceled and subsequently destroyed by the
Trust Administrator in accordance with the Trust Administrator's customary procedures.
(e) No transfer of any Private Certificate shall be made unless that transfer is made pursuant to an effective registration
statement under the 1933 Act and effective registration or qualification under applicable state securities laws, or is made in a
transaction which does not require such registration or qualification. Except in connection with any transfer of a Private
Certificate by the Depositor to any affiliate or any transfer of a Private Certificate from the Depositor or an affiliate of the
Depositor to an owner trust or other entity established by the Depositor, in the event that a transfer is to be made in reliance upon
an exemption from the 1933 Act and such laws, in order to assure compliance with the 1933 Act and such laws, the Certificateholder
desiring to effect such transfer and such Certificateholder's prospective transferee shall each certify to the Trust Administrator in
writing the facts surrounding the transfer in substantially the form set forth in Exhibit L (the "Transferor Certificate") and
(i) deliver a letter in substantially the form of either (A) Exhibit M-1 (the "Investment Letter"), provided that all of the Private
Certificates of a Class shall be transferred to one investor or the Depositor otherwise consents to such transfer, (B) Exhibit M-2
(the "Rule 144A Letter") or (C) Exhibit M-3 (the "Regulation S") or (ii) there shall be delivered to the Trust Administrator at the
expense of the transferor an Opinion of Counsel that such transfer may be made pursuant to an exemption from the 1933 Act. The
Depositor shall provide to any Holder of a Private Certificate and any prospective transferee designated by any such Holder,
information regarding the related Certificates and the Mortgage Loans and such other information as shall be necessary to satisfy the
condition to eligibility set forth in Rule 144A(d)(4) or Regulation S, as applicable, for transfer of any such Certificate without
registration thereof under the 1933 Act pursuant to the registration exemption provided by Rule 144A or Regulation S. The Trust
Administrator shall cooperate with the Depositor in providing the information referenced in the preceding sentence, including
providing to the Depositor such information regarding the Certificates, the Mortgage Loans and other matters regarding the Trust Fund
as the Depositor shall reasonably request to meet its obligation under the preceding sentence. Each Holder of a Private Certificate
desiring to effect such transfer shall, and does hereby agree to, indemnify the Trust Administrator, the Depositor, the Seller, the
Master Servicer, each Servicer and the Special 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.
(f) Except in connection with any transfer of a Private Certificate by the Depositor to any affiliate or any transfer of a
Private Certificate from the Depositor or an affiliate of the Depositor to an owner trust or other entity established by the
Depositor, no transfer of an ERISA-Restricted Certificate (except for the Residual Certificates) shall be made unless the Trust
Administrator shall have received in accordance with Exhibit X-0, Xxxxxxx X-0 or Exhibit M-3, as applicable, either (i) a
representation letter from the transferee of such Certificate, acceptable to and in form and substance satisfactory to the Trust
Administrator, to the effect that such transferee is not an employee benefit plan or arrangement subject to Section 406 of ERISA or
Section 4975 of the Code, or a person using the assets of any such plan or arrangement, which representation letter shall not be an
expense of the Trustee, the Trust Administrator or the Trust Fund, (ii) if the purchaser is an insurance company and the Certificate
has been the subject of an ERISA-Qualifying Underwriting, a representation that the purchaser is an insurance company which is
purchasing such Certificates with funds contained in an "insurance company general account" (as such term is defined in Section V(e)
of Prohibited Transaction Class Exemption 95-60 ("PTCE 95-60")) and that the purchase and holding of such Certificates are covered
under Sections I and III of PTCE 95-60 or (iii) in the case of any such Certificate presented for registration in the name of an
employee benefit plan or arrangement subject to Section 406 of ERISA or Section 4975 of the Code (or comparable provisions of any
subsequent enactments), or a person using such plan's or arrangement's assets, an Opinion of Counsel satisfactory to the Trust
Administrator to the effect that the purchase or holding of such Certificate will not result in prohibited transactions under
Section 406 of ERISA and/or Section 4975 of the Code and will not subject the Depositor, the Trustee, the Trust Administrator, the
Master Servicer or any other Servicer to any obligation in addition to those undertaken in this Agreement, which Opinion of Counsel
shall not be an expense of such parties or the Trust Fund. No transfer of a Residual Certificate shall be made unless the Trust
Administrator shall have received, in accordance with Exhibit N, a representation letter from the transferee of such Certificate,
acceptable to and in form and substance satisfactory to the Trust Administrator, to the effect that such transferee is not an
employee benefit plan or arrangement subject to Section 406 of ERISA or Section 4975 of the Code, or a person using the assets of any
such plan or arrangement, which representation letter shall not be an expense of the Trustee, the Trust Administrator or the Trust
Fund. In the event the representations referred to in this Section 6.02(f) are not furnished, such representations shall be deemed
to have been made to the trustee by the transferee's acceptance of such ERISA-Restricted Certificate by any beneficial owner who
purchases an interest in such Certificate in book-entry form. In the event that a representation is violated, or any attempt to
transfer an ERISA-Restricted Certificate to a plan or arrangement or person using a plan's or arrangement's assets is attempted
without the delivery to the Trust Administrator of the Opinion of Counsel described above, the attempted transfer or acquisition of
such Certificate shall be void and of no effect.
(g) Additional restrictions on transfers of the Class AR and Class AR-L Certificates are set forth below:
(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 other than a Disqualified
Organization and shall promptly notify the Trust Administrator of any change or impending change in its status as other
than a Disqualified Organization.
(B) In connection with any proposed transfer of any ownership interest in a Residual Certificate to a U.S. Person, the Trust
Administrator shall require delivery to it, and shall not register the transfer of a Residual Certificate until its
receipt of (1) an affidavit and agreement (a "Transferee Affidavit and Agreement" attached hereto as Exhibit N) from the
proposed transferee, in form and substance satisfactory to the Trust Administrator, representing and warranting, among
other things, that it is not a non U.S. Person, that such transferee is other than a Disqualified Organization, that it
is not acquiring its ownership interest in a Residual Certificate that is the subject of the proposed Transfer as a
nominee, trustee or agent for any Person who is not other than a Disqualified Organization, that for so long as it
retains its ownership interest in a Residual Certificate, it will endeavor to remain other than a Disqualified
Organization, and that it has reviewed the provisions of this Section 6.02(g) and agrees to be bound by them, and (2) a
certificate, attached hereto as Exhibit O, from the Holder wishing to transfer a Residual Certificate, in form and
substance satisfactory to the Trust Administrator, representing and warranting, among other things, that no purpose of
the proposed transfer is to allow such Holder to impede the assessment or collection of tax.
(C) Notwithstanding the delivery of a Transferee Affidavit and Agreement by a proposed transferee under clause (B) above, if the
Trust Administrator has actual knowledge that the proposed transferee is not other than a Disqualified Organization, 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 agrees, by holding or acquiring such
ownership interest, to require a Transferee Affidavit and Agreement from the other Person to whom such Person attempts
to transfer its ownership interest and to provide a certificate to the Trust Administrator in the form attached hereto
as Exhibit O.
(ii) The Trust Administrator shall register the transfer of any Residual Certificate only if it shall have received the
Transferee Affidavit and Agreement, a certificate of the Holder requesting such transfer in the form attached hereto as
Exhibit O and all of such other documents as shall have been reasonably required by the Trust Administrator as a condition
to such registration.
(iii) (A) If any Disqualified Organization shall become a Holder of a Residual Certificate, then the last preceding Holder that
was other than a Disqualified Organization shall be restored, to the extent permitted by law, to all rights and
obligations as Holder thereof retroactive to the date of registration of such transfer of such Residual Certificate. If
any non U.S. Person shall become a Holder of a Residual Certificate, then the last preceding Holder that is a U.S.
Person shall be restored, to the extent permitted by law, to all rights and obligations as Holder thereof retroactive to
the date of registration of the transfer to such non U.S. Person of such Residual Certificate. If a transfer of a
Residual Certificate is disregarded pursuant to the provisions of Treasury Regulations Section 1.860E-1 or
Section 1.860G-3, then the last preceding Holder that was other than a Disqualified Organization shall be restored, to
the extent permitted by law, to all rights and obligations 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 6.02(g) 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.
(B) If any purported transferee of a Residual Certificate shall become a Holder of a Residual
Certificate in violation of the restrictions in this Section 6.02(g) 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 Depositor 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 Depositor on such terms as the
Depositor may choose. Such purported transferee shall promptly endorse and deliver a Residual Certificate in accordance
with the instructions of the Depositor. Such purchaser may be the Depositor itself or any affiliate of the Depositor.
The proceeds of such sale, net of the commissions (which may include commissions payable to the Depositor or its
affiliates), expenses and taxes due, if any, shall be remitted by the Depositor 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 Depositor, and
the Depositor shall not be liable to any Person having an ownership interest or a purported ownership interest in a
Residual Certificate as a result of its exercise of such discretion.
(iv) The Master Servicer and each Servicer, on behalf of the Trust Administrator, shall make available, upon written request from
the Trust Administrator, all information reasonably available to it that is 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 not other than a Disqualified
Organization, including the information regarding "excess inclusions" of such Residual Certificate required to be provided
to the Internal Revenue Service and certain Persons as described in Treasury Regulation Section 1.860D 1(b)(5), and (B) as a
result of any regulated investment company, real estate investment trust, common trust fund, partnership, trust, estate or
organizations described in Section 1381 of the Code having as among its record holders at any time any Person who is not
other than a Disqualified Organization. Reasonable compensation for providing such information may be required by the
Master Servicer or the related Servicer from such Person.
(v) The provisions of this Section 6.02(g) set forth prior to this Section (v) may be modified, added to or eliminated by the
Depositor, provided that there shall have been delivered to the Trust Administrator 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 rating of the Certificates; and
(B) a certificate of the Depositor stating that the Depositor has received an Opinion of Counsel, in form and substance
satisfactory to the Depositor, to the effect that such modification, addition to or elimination of such provisions will
not cause the Trust Fund to cease to qualify as a REMIC and will not create a risk that (i) the Trust Fund may be
subject to an entity level tax caused by the transfer of a Residual Certificate to a Person which is not other than a
Disqualified Organization or (2) a Certificateholder or another Person will be subject to a REMIC related tax caused by
the transfer of applicable Residual Certificate to a Person which is not other than a Disqualified Organization.
(vi) The following legend shall appear on each Residual Certificate:
ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES A
TRANSFER AFFIDAVIT TO THE DEPOSITOR AND THE TRUST ADMINISTRATOR THAT (1) SUCH TRANSFEREE IS NOT (A) THE UNITED
STATES, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY
AGENCY OR INSTRUMENTALITY OF ANY OF THE FOREGOING, (B) ANY ORGANIZATION (OTHER THAN A COOPERATIVE DESCRIBED IN
SECTION 521 OF THE CODE) WHICH 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, (C) ANY ORGANIZATION DESCRIBED IN SECTION 1381(a)(2)(C) OF
THE CODE (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A), (B), OR (C) BEING HEREINAFTER REFERRED TO AS A
"DISQUALIFIED ORGANIZATION"), OR (D) AN AGENT OF A DISQUALIFIED ORGANIZATION AND (2) NO PURPOSE OF SUCH TRANSFER IS
TO ENABLE THE TRANSFEROR TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX. SUCH AFFIDAVIT SHALL INCLUDE CERTAIN
REPRESENTATIONS AS 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 OF
THIS CERTIFICATE SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH.
(h) The Trust Administrator shall have no liability to the Trust Fund arising from a transfer of any such Certificate in
reliance upon a certification, ruling or Opinion of Counsel described in this Section 6.02; provided, however, that the Trust
Administrator shall not register the transfer of any Residual Certificate if it has actual knowledge that the proposed transferee
does not meet the qualifications of a permitted Holder of a Residual Certificate as set forth in this Section 6.02.
(i) Each Holder of a Class 6-A-1 Certificate or any interest therein shall be deemed to have represented, by its acquisition or
holding of such certificate or any interest therein, that as of any date prior to the termination of the Swap Agreement, at least one
of PTCE 84-14, 90-1, 91-38, 95-60 or 96-23 or other applicable exemption applies to such Holder's right to receive payments from the
Supplemental Interest Trust.
SECTION 6.03. Mutilated, Destroyed, Lost or Stolen Certificates.
If (a) 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 (b) there is delivered to each Servicer, the
Trustee and the Trust Administrator such security or indemnity as may be required by them to save each of them harmless, then, in the
absence of notice to the Trustee and the Trust Administrator that such Certificate has been acquired by a protected purchaser, 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 like tenor and interest in the Trust Fund. In connection with the issuance of any new
Certificate under this Section 6.03, 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 6.03 shall constitute complete and
indefeasible evidence of ownership in the Trust Fund, as if originally issued, whether or not the lost, stolen or destroyed
Certificate shall be found at any time.
SECTION 6.04. Persons Deemed Owners.
Prior to due presentation of a Certificate for registration of transfer, each Servicer, the Trust Administrator, and
any agent of the Master Servicer or any Servicer, the Trust Administrator may treat the person in whose name any Certificate is
registered as the owner of such Certificate for the purpose of receiving distributions as provided in this Agreement and for all
other purposes whatsoever, and none of the Master Servicer or the Servicers, the Trust Administrator, nor any agent of the Master
Servicer or a Servicer or the Trust Administrator shall be affected by any notice to the contrary.
SECTION 6.05. Access to List of Certificateholders' Names and Addresses.
(a) If three or more Certificateholders (i) request in writing from the Trust Administrator a list of the names and addresses of
Certificateholders, (ii) state that such Certificateholders desire to communicate with other Certificateholders with respect to their
rights under this Agreement or under the Certificates and (iii) provide a copy of the communication which such Certificateholders
propose to transmit, then the Trust Administrator shall, within ten Business Days after the receipt of such request, afford such
Certificateholders access during normal business hours to a current list of the Certificateholders. The expense of providing any
such information requested by a Certificateholder shall be borne by the Certificateholders requesting such information and shall not
be borne by the Trust Administrator or the Trustee. Every Certificateholder, by receiving and holding a Certificate, agrees that the
Trustee and the Trust Administrator shall not be held accountable by reason of the disclosure of any such information as to the list
of the Certificateholders hereunder, regardless of the source from which such information was derived.
(b) The Master Servicer and each Servicer, so long as it is a servicer hereunder, DLJMC and the Depositor shall have unlimited
access to a list of the names and addresses of the Certificateholders which list shall be provided by the Trust Administrator
promptly upon request.
SECTION 6.06. Maintenance of Office or Agency.
The Trust Administrator will maintain or cause to be maintained at its expense an office or offices or agency or
agencies in Minneapolis, Minnesota where Certificates may be surrendered for registration of transfer or exchange and where notices
and demands to or upon the Trust Administrator in respect of the Certificates and this Agreement may be served. The Trust
Administrator initially designates its Corporate Trust Office as its office for such purpose. The Trust Administrator will give
prompt written notice to the Certificateholders of any change in the location of any such office or agency.
SECTION 6.07. Book Entry Certificates.
Notwithstanding the foregoing, the Book-Entry Certificates, upon original issuance, shall be issued in the form of
one or more typewritten Certificates representing the Book-Entry Certificates, to be delivered to DTC, the initial Clearing Agency,
by, or on behalf of, the Depositor. The Book-Entry Certificates shall initially be registered on the Certificate Register in the
name of Cede & Co., the nominee of DTC, as the initial Clearing Agency, and no Beneficial Holder will receive a definitive
certificate representing such Beneficial Holder's interest in the Certificates, except as provided in Section 6.09. Unless and until
definitive, fully registered Certificates ("Definitive Certificates") have been issued to the Beneficial Holders pursuant to
Section 6.09:
(a) the provisions of this Section 6.07 shall be in full force and effect with respect to the Book-Entry Certificates;
(b) the Depositor and the Trust Administrator may deal with the Clearing Agency for all purposes with respect to the Book-Entry
Certificates (including the making of distributions on such Certificates) as the sole Holder of such Certificates;
(c) to the extent that the provisions of this Section 6.07 conflict with any other provisions of this Agreement, the provisions
of this Section 6.07 shall control; and
(d) the rights of the Beneficial Holders of the Book-Entry Certificates shall be exercised only through the Clearing Agency and
the Participants and shall be limited to those established by law and agreements between such Beneficial Holders and the Clearing
Agency and/or the Participants. Pursuant to the Depository Agreement, unless and until Definitive Certificates are issued pursuant
to Section 6.09, the initial Clearing Agency will make book-entry transfers among the Participants and receive and transmit
distributions of principal and interest on the related Book-Entry Certificates to such Participants.
For purposes of any provision of this Agreement requiring or permitting actions with the consent of, or at the
direction of, Holders of the Book-Entry Certificates evidencing a specified percentage of the aggregate unpaid principal amount of
such Certificates, such direction or consent may be given by the Clearing Agency at the direction of Beneficial Holders owning such
Certificates evidencing the requisite percentage of principal amount of such Certificates. The Clearing Agency may take conflicting
actions with respect to the Book-Entry Certificates to the extent that such actions are taken on behalf of the Beneficial Holders.
SECTION 6.08. Notices to Clearing Agency.
Whenever notice or other communication to the Holders of Book-Entry Certificates is required under this Agreement,
unless and until Definitive Certificates shall have been issued to the related Certificateholders pursuant to Section 6.09, the Trust
Administrator shall give all such notices and communications specified herein to be given to Holders of the Book-Entry Certificates
to the Clearing Agency which shall give such notices and communications to the related Participants in accordance with its applicable
rules, regulations and procedures.
SECTION 6.09. Definitive Certificates.
If (a) the Depositor advises the Trust Administrator in writing that the Clearing Agency is no longer willing or
able to properly discharge its responsibilities under the Depository Agreement with respect to the Certificates and the Trust
Administrator or the Depositor is unable to locate a qualified successor, (b) the Depositor, with the consent of the applicable
Participants, advises the Trust Administrator in writing that it elects to terminate the book-entry system with respect to the
Book-Entry Certificates through the Clearing Agency or (c) after the occurrence of an Event of Default, Holders of Book-Entry
Certificates evidencing not less than 66-2/3% of the aggregate Class Principal Balance of the Book-Entry Certificates advise the
Trust Administrator in writing that the continuation of a book-entry system with respect to the such Certificates through the
Clearing Agency is no longer in the best interests of the Holders of such Certificates with respect to the Book-Entry Certificates
and the applicable Participants consent, the Trust Administrator shall notify all Holders of such Certificates of the occurrence of
any such event and the availability of Definitive Certificates. Upon surrender to the Trust Administrator of such Certificates by
the Clearing Agency, accompanied by registration instructions from the Clearing Agency for registration, the Trust Administrator
shall authenticate and deliver the Definitive Certificates. Neither the Depositor nor the Trust Administrator shall be liable for
any delay in 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 Clearing
Agency 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 Trust Administrator shall recognize the Holders of Definitive Certificates as Certificateholders
hereunder.
ARTICLE VII
THE DEPOSITOR, THE SELLER, THE MASTER
SERVICER, THE SERVICERS AND THE SPECIAL SERVICER
SECTION 7.01. Liabilities of the Seller, the Depositor, the Master Servicer, the Back-Up Servicer, the Servicers and the Special
Servicer.
The Depositor, the Seller, the Master Servicer, the Back-Up Servicer, each Servicer and the Special Servicer shall
be liable under this Agreement to any other party to this Agreement, including the liability of each Servicer to the Master Servicer
in accordance herewith only to the extent of the obligations specifically and respectively imposed upon and undertaken by them herein.
SECTION 7.02. Merger or Consolidation of the Seller, the Depositor, the Back-Up Servicer, the Master Servicer, the Servicers or
the Special Servicer.
Subject to the immediately succeeding paragraph, the Depositor, the Seller, the Master Servicer, the Back-Up
Servicer, each Servicer and the Special Servicer will each do or cause to be done all things necessary to preserve and keep in full
force and effect its existence, rights and franchises (charter and statutory) and will each 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, or any of the Mortgage Loans and to perform its respective duties under this Agreement.
Any Person into which the Depositor, the Seller, the Master Servicer, the Back-Up Servicer, any Servicer or the
Special Servicer may be merged or consolidated, or any Person resulting from any merger or consolidation to which the Depositor, the
Seller, the Master Servicer, the Back-Up Servicer, any Servicer or the Special Servicer shall be a party, or any Person succeeding to
the business of the Depositor, the Seller, the Back-Up Servicer or any Servicer, shall be the successor of the Depositor, the Seller,
the Back-Up Servicer or such 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 Master Servicer, the Back-Up Servicer, any such Servicer or the Special Servicer shall be qualified to sell
mortgage loans to, and to service mortgage loans on behalf of, FNMA or FHLMC.
Notwithstanding anything else in this Section 7.02 or in Section 7.04 hereof to the contrary, the Master Servicer or
a Servicer may assign its rights and delegate its duties and obligations under this Agreement; provided, however, that the Master
Servicer or such Servicer gives the Depositor, the Trustee and the Trust Administrator notice of such assignment; provided, further,
(a) that such purchaser or transferee accepting such assignment and delegation shall be an institution that is a FNMA and FHLMC
approved seller/servicer in good standing, which has a net worth of at least $15,000,000, and which is willing to service the
Mortgage Loans and (b) such purchaser or transferee executes and delivers to the Depositor, the Trustee and the Trust Administrator
an agreement accepting such delegation and assignment, which contains an assumption by such Person of the rights, powers, duties,
responsibilities, obligations and liabilities of the Master Servicer, the Back-Up Servicer or such Servicer, with like effect as if
originally named as a party to this Agreement; provided, further, that each of the Rating Agencies acknowledge that its rating of the
Certificates in effect immediately prior to such assignment will not be qualified or reduced as a result of such assignment and
delegation. In the case of any such assignment and delegation, the Master Servicer, the Back-Up Servicer or such Servicer shall be
released from its obligations under this Agreement (except as provided above), except that the Master Servicer, Back-Up 0Servicer or
the related Servicer shall remain liable for all liabilities and obligations incurred by it as the Master Servicer, Back-Up Servicer
or Servicer hereunder prior to the satisfaction of the conditions to such assignment and delegation set forth in the preceding
sentence.
SECTION 7.03. Limitation on Liability of the Seller, the Depositor, the Master Servicer, the Back-Up Servicer, the Servicers, the
Special Servicer and Others.
None of the Depositor, the Master Servicer, the Back-Up Servicer, any Servicer, the Seller, the Special Servicer,
nor any of the directors, officers, employees or agents of the Depositor, the Master Servicer, the Back-Up Servicer, any Servicer,
the Seller or the Special Servicer shall be under any liability to 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 Back-Up Servicer, any Servicer, the Seller or the Special Servicer against
any breach of representations or warranties made by it herein or protect the Depositor, the Master Servicer, the Back-Up Servicer,
any Servicer, the Seller or the Special Servicer or any such director, officer, employee or agent from any liability which would
otherwise be imposed by reasons of willful misfeasance, bad faith or gross negligence in the performance of duties or by reason of
reckless disregard of obligations and duties hereunder. The Depositor, the Master Servicer, the Back-Up Servicer, any Servicer, the
Seller and the Special Servicer and any director, officer, employee or agent of the Depositor, the Master Servicer, the Back-Up
Servicer, any Servicer, the Seller or the Special Servicer 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. The Depositor, the Master Servicer, the Back-Up
Servicer, any Servicer, the Seller and the Special Servicer and any director, officer, employee or agent of the Depositor, the Master
Servicer, the Back-Up Servicer, any Servicer, the Seller or the Special Servicer shall be indemnified by the Trust Fund and held
harmless against any loss, liability or expense incurred in connection with any legal action relating to this Agreement or the
Certificates, other than 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. None of the Depositor,
the Master Servicer, the Back-Up Servicer, any Servicer, the Seller or the Special Servicer shall be under any obligation to appear
in, prosecute or defend any legal action that is not incidental to their respective duties hereunder and which in its opinion may
involve it in any expense or liability; provided, however, that the Depositor, the Master Servicer, the Back-Up Servicer, any
Servicer, the Seller or the Special Servicer may in its discretion undertake any such action that it may deem necessary or desirable
in respect of this Agreement and the rights and duties of the parties hereto and interests of the Trustee, the Trust Administrator
and the Certificateholders hereunder; provided, however, that in the event the related Servicer agrees, at the request of the Seller,
to act on behalf of the Seller in any dispute or litigation that is not incidental to such Servicer's duties hereunder and that
relates to the origination of a Mortgage Loan, the Seller shall pay all expenses associated with the management and defense of such
claim. Anything in this Agreement to the contrary notwithstanding, in no event shall the Master Servicer, the Back-Up Servicer, any
Servicer or the Special Servicer be liable for special, indirect or consequential loss or damage of any kind whatsoever (including
but not limited to lost profits), even if the Master Servicer, the Back-Up Servicer, the related Servicer or the Special Servicer has
been advised of the likelihood of such loss or damage and regardless of the form of action.
SECTION 7.04. Master Servicer and Servicer Not to Resign; Transfer of Servicing.
(a) Neither the Master Servicer nor any Servicer shall resign from the obligations and duties hereby imposed on it except
(i) upon appointment of a successor master servicer or successor servicer and receipt by the Trustee and the Trust Administrator of a
letter from each Rating Agency that such a resignation and appointment will not result in a downgrading of the rating of any of the
Certificates related to the applicable Mortgage Loans, or (ii) upon determination that its duties hereunder are no longer permissible
under applicable law. Any such determination under clause (ii) permitting the resignation of the Master Servicer or a Servicer shall
be evidenced by an Opinion of Counsel to such effect delivered to the Trustee and the Trust Administrator. No such resignation shall
become effective until the successor master servicer or successor servicer shall have assumed the Master Servicer or such Servicer's,
as applicable, responsibilities, duties, liabilities and obligations hereunder in accordance with Section 8.02 hereof.
(b) Notwithstanding the foregoing, at DLJMC's request, so long as it is the owner of the related servicing rights, the Master
Servicer or SPS shall resign, upon the selection and appointment of a successor master servicer or servicer, as applicable; provided
that DLJMC delivers to the Trustee and the Trust Administrator the letter required in Section 7.04(a)(i) above. Notwithstanding the
foregoing, in the event that the Master Servicer is appointed as the successor servicer to SPS, the requirements of
Section 7.04(a)(i) shall be waived. In connection with the foregoing, unless otherwise directed by DLJMC in writing on or prior to
the first day of the second month following the Closing Date, DLJMC hereby directs SPS to resign as Servicer hereunder and appoints
the Master Servicer to service the SPS Serviced Mortgage Loans, effective as of the first day of the third month following the
Closing Date. In connection with its resignation, SPS hereby agrees to deliver to the Master Servicer on the date of its resignation
a schedule setting forth all of the SPS Mortgage Loans as of such date. The Master Servicer agrees that, as of the first day of the
third month following the Closing Date, it will service the SPS Serviced Mortgage Loans, and that such loans shall constitute Xxxxx
Fargo Serviced Mortgage Loans, in accordance with the terms of this Agreement. If the Master Servicer resigns pursuant to this
Section 7.04(b), DLJMC shall pay the Master Servicer an amount equal to the product of (a) the Stated Principal Balance of all of the
Mortgage Loans then outstanding and (b) 0.02%.
(c) Notwithstanding the foregoing, if the Trust Administrator shall for any reason no longer be Trust Administrator hereunder,
at DLJMC's request, the Master Servicer shall resign, upon the selection and appointment of a successor master servicer; provided
that DLJMC delivers to the Trustee and the Trust Administrator the letter required in Section 7.04(a)(i) above.
(d) Notwithstanding the foregoing, at DLJMC's request, the Special Servicer shall resign, upon the selection and appointment of
a successor special servicer by DLJMC; provided that DLJMC delivers to the Trustee and the Trust Administrator the letter required in
Section 7.04(a)(i) above.
SECTION 7.05. Master Servicer, Seller and Servicers May Own Certificates.
Each of the Master Servicer, the Seller, the Special Servicer and each Servicer in its individual or any other
capacity may become the owner or pledgee of Certificates with the same rights as it would have if it were not the Master Servicer,
the Seller, the Special Servicer or a Servicer.
SECTION 7.06. Termination of Duties of the Back-Up Servicer.
The rights and obligations of the Back-Up Servicer under this Agreement shall terminate upon the earlier of (i) the
appointment of the Back-Up Servicer (or its affiliate) as successor Servicer to SPS and (ii) the termination of Xxxxx Fargo as
Back-Up Servicer by the Seller. The Seller may remove Xxxxx Fargo as Back-Up Servicer at any time.
ARTICLE VIII
DEFAULT
SECTION 8.01. Events of Default.
"Event of Default," wherever used herein, and as to the Master Servicer or any Servicer, means any one of the
following events (whatever reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or
governmental body):
(a) any failure by the Master Servicer or a Servicer to remit to the Certificateholders or to the Trust Administrator any
payment other than an Advance required to be made by the Master Servicer or such Servicer under the terms of this Agreement, which
failure shall continue unremedied for a period of (i) with respect to the Master Servicer or a Servicer other than Xxxxx Fargo, one
Business Day and (ii) with respect to Xxxxx Fargo, two Business Days, after the date upon which written notice of such failure shall
have been given to the Master Servicer or such Servicer by the Trust Administrator or the Depositor or to the Master Servicer or the
related Servicer and the Trust Administrator by the Holders of Certificates having not less than 25% of the Voting Rights evidenced
by the Certificates; or
(b) any failure by the Master Servicer or a Servicer to observe or perform in any material respect any other of the covenants or
agreements on the part of the Master Servicer or a Servicer contained in this Agreement (except as set forth in (c) and (g) below)
which failure (i) materially affects the rights of the Certificateholders and (ii) shall continue unremedied for a period of 60 days
after the date on which written notice of such failure shall have been given to the Master Servicer or such Servicer by the Trust
Administrator or the Depositor, or to the Master Servicer or a Servicer and the Trust Administrator by the Holders of Certificates
evidencing not less than 25% of the Voting Rights evidenced by the Certificates; or
(c) if a representation or warranty set forth in Section 2.03 hereof made solely in its capacity as the Master Servicer or a
Servicer shall prove to be materially incorrect as of the time made in any respect that materially and adversely affects interests of
the Certificateholders, and the circumstances or condition in respect of which such representation or warranty was incorrect shall
not have been eliminated or cured within 90 days after the date on which written notice thereof shall have been given to the Master
Servicer or the related Servicer by the Trust Administrator for the benefit of the Certificateholders or by the Depositor; or
(d) a decree or order of a court or agency or supervisory authority having jurisdiction in the premises for the appointment of a
conservator or receiver or liquidator in any insolvency, readjustment of debt, marshalling of assets and liabilities or similar
proceedings, or for the winding-up or liquidation of its affairs, shall have been entered against the Master Servicer or a Servicer
and such decree or order shall have remained in force undischarged or unstayed for a period of 60 days; or
(e) the Master Servicer or a 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 the Master Servicer
or such Servicer or all or substantially all of the property of the Master Servicer or such Servicer; or
(f) the Master Servicer or a Servicer shall admit in writing its inability to pay its debts generally as they become due, file a
petition to take advantage of, or commence a voluntary case under, any applicable insolvency or reorganization statute, make an
assignment for the benefit of its creditors, or voluntarily suspend payment of its obligations; or
(g) any failure of the Master Servicer or a Servicer to make any Advance in the manner and at the time required to be made from
its own funds pursuant to Section 5.01 of this Agreement and after receipt of written notice from the Trust Administrator of such
failure, which failure continues unremedied (i) with respect to the Master Servicer or a Servicer, other than Xxxxx Fargo (in its
capacity as a Servicer), after 2 p.m., New York City time, on the Business Day immediately following the Master Servicer's or such
Servicer's receipt of such notice and (ii) with respect to Xxxxx Fargo (in its capacity as a Servicer), on the second Business Day
immediately following Xxxxx Fargo's receipt of such notice; or
(h) (a) the servicer rankings or ratings for a Servicer are downgraded to "below average" status by one or more of the Rating
Agencies rating the Certificates or (b) one or more Classes of the Certificates are downgraded or placed on negative watch due in
whole or in part to the performance or servicing of a Servicer; or
(i) the servicer rankings or ratings for a Servicer are downgraded two or more levels below the level in effect on the Closing
Date by one or more of the Rating Agencies rating the Certificates; or
(j) (a) either (i) the master servicer rankings or ratings for the Master Servicer are downgraded two or more levels below the
level in effect on the Closing date by one or more of the Rating Agencies rating the Certificates or (ii) the Master Servicer
rankings or ratings for the Master Servicer, are downgraded to "below average" status by one or more of the Rating Agencies rating
the Certificates or (b) one or more Classes of the Certificates are downgraded or placed on negative watch due in whole or in part to
the performance or master servicing of the Master Servicer; or
(k) any failure by an applicable Servicer to (a) remit payment of an Assigned Prepayment Premium to the Collection Account or
(b) remit funds in the amount equal to an Assigned Prepayment Premium which the applicable Servicer has failed to collect, in each
case as required pursuant to this Agreement, which 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 Servicer by the Trust
Administrator, the Master Servicer, the Trustee or the Depositor.
If an Event of Default due to the actions or inaction of the Master Servicer or a Servicer described in clauses
(a) through (f) of this Section shall occur, then, and in each and every such case, so long as such Event of Default shall not have
been remedied, (i) the Trust Administrator shall at the direction of the Trustee or the Holders of Certificates evidencing not less
than 25% of the Voting Rights evidenced by the Certificates, by notice in writing to the Master Servicer or such Servicer (with a
copy to the Rating Agencies), terminate all of the rights and obligations of the Master Servicer or such Servicer under this
Agreement (other than rights to reimbursement for Advances and Servicing Advances previously made, as provided in Section 3.08) and
(ii) the Master Servicer may, if such Event of Default is due to the actions or inactions of a Servicer, by notice in writing to such
Servicer (with a copy to the Rating Agencies), terminate all of the rights and obligations of such Servicer under this Agreement
(other than rights to reimbursement for Advances and Servicing Advances previously made, as provided in Section 3.08).
If an Event of Default described in clause (g) shall occur, (i) if the Master Servicer has failed to make any
Advance, the Trustee, and (ii) if any Servicer has failed to make any Advance, the Master Servicer, shall prior to the next
Distribution Date, immediately make such Advance and terminate the rights and obligations of the Master Servicer or applicable
Servicer, as applicable, hereunder and succeed to the rights and obligations of the Master Servicer or such Servicer, as applicable,
hereunder pursuant to Section 8.02, including the obligation to make Advances on such succeeding Distribution Date pursuant to the
terms hereof. No Event of Default with respect to the Master Servicer or a Servicer shall affect the rights or duties of any other
Servicer or constitute an Event of Default as to any other Servicer.
If an Event of Default described in clause (h), (i) or (k) occurs, the Master Servicer or the Back-Up Servicer
solely with respect to clause (h), shall at the direction of DLJMC, by notice in writing to such Servicer, terminate all of the
rights and obligations of such Servicer under this Agreement (other than rights to reimbursement for Advances and Servicing Advances
previously made, as provided in Section 3.08) and shall appoint as successor Servicer the entity selected by DLJMC in accordance with
Section 8.02; provided that DLJMC shall first furnish to the Master Servicer or the Back-Up Servicer, as applicable, a letter from
each Rating Agency that the appointment of such successor will not result in a downgrading of the rating of any of the Certificates.
If an Event of Default described in clause (k) occurs, the Trustee shall at the direction of DLJMC, by notice in
writing to the Master Servicer, terminate all of the rights and obligations of the Master Servicer under this Agreement (other than
rights to reimbursement for Advances previously made, as provided in Section 3.08) and shall appoint as successor Master Servicer the
entity selected by DLJMC in accordance with Section 8.02; provided that DLJMC shall first furnish to the Trustee a letter from each
Rating Agency that the appointment of such successor will not result in a downgrading of the rating of any of the Certificates.
No Event of Default with respect to the Servicer shall affect the rights or duties of the Master Servicer or
constitute an Event of Default as to the Master Servicer.
SECTION 8.02. Master Servicer or Trust Administrator to Act; Appointment of Successor.
On and after the time the Master Servicer or a Servicer receives a notice of termination pursuant to Section 8.01
hereof or resigns pursuant to Section 7.04 hereof, subject to the provisions of Section 3.04 hereof, the Trustee (in the case of the
Master Servicer), the Trust Administrator or the Back-Up Servicer (in the case of SPS), shall be the successor in all respects to the
Master Servicer or such Servicer, as applicable, in its capacity as servicer under this Agreement and with respect to the
transactions set forth or provided for herein and shall be subject to all the responsibilities, duties and liabilities relating
thereto placed on the Master Servicer or such Servicer, as applicable, by the terms and provisions hereof; provided, that the
Trustee, the Trust Administrator, the Master Servicer or the Back-Up Servicer, as applicable, shall not be deemed to have made any
representation or warranty as to any Mortgage Loan made by the Master Servicer or any Servicer, as applicable, and shall not effect
any repurchases or substitutions of any Mortgage Loan; provided, further, that it is understood and acknowledged by the parties
hereto that there will be a full period of transition (not to exceed ninety (90) days) before the actual servicing functions of any
Servicer can be fully transferred to Xxxxx Fargo as successor Servicer; provided, further, that during such period of transition
Xxxxx Fargo, as successor Servicer, shall continue to make all required Compensating Interest Payments and Advances. As compensation
therefor, the Trustee, the Trust Administrator, the Back-Up Servicer or the Master Servicer, as applicable, shall be entitled to all
funds relating to the Mortgage Loans that the Master Servicer or related Servicer (the "Replaced Servicer") would have been entitled
to charge to the related Collection Account if the Replaced Servicer had continued to act hereunder (except that the Replaced
Servicer shall retain the right to be reimbursed for advances (including, without limitation, Advances and Servicing Advances)
theretofore made by the Replaced Servicer with respect to which it would be entitled to be reimbursed as provided in Section 3.08 if
it had not been so terminated or resigned). Notwithstanding the foregoing, if the Trustee, the Trust Administrator, the Back-Up
Servicer or the Master Servicer, as applicable, has become the successor to a Replaced Servicer, in accordance with this
Section 8.02, the Trustee, the Trust Administrator, the Back-Up Servicer or the Master Servicer, as applicable, may, if it shall be
unwilling to so act, or shall, if it is unable to so act, appoint, or petition a court of competent jurisdiction to appoint, any
established mortgage loan servicing institution, the appointment of which does not adversely affect the then current rating of the
Certificates, as the successor to the Master Servicer, the Back-Up Servicer or a Servicer, as applicable, hereunder in the assumption
of all or any part of the responsibilities, duties or liabilities of the Master Servicer, the Back-Up Servicer or such Servicer, as
applicable, provided that such successor to the Master Servicer, the Back-Up Servicer or the Servicer, as applicable, shall not be
deemed to have made any representation or warranty as to any Mortgage Loan made by the Master Servicer or the related Servicer, as
applicable. Pending appointment of a successor to the Master Servicer, the Back-Up Servicer or a Servicer, as applicable, hereunder,
the Trustee, the Trust Administrator or the Master Servicer, as applicable, unless such party is prohibited by law from so acting,
shall act in such capacity as provided herein. In connection with such appointment and assumption, the Trustee, the Trust
Administrator, the Master Servicer or the Back-Up Servicer, 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 Replaced Servicer, hereunder. The Trustee, the Trust Administrator or the Master Servicer, as
applicable, and such successor shall take such action, consistent with this Agreement, as shall be necessary to effectuate any such
succession. None of the Trustee, the Trust Administrator, the Master Servicer nor any other successor servicer shall be deemed to be
in default hereunder by reason of any failure to make, or any delay in making, any distribution hereunder or any portion thereof
caused by the failure of a Replaced Servicer to deliver, or any delay in delivering, cash, documents or records to it.
A Replaced Servicer that has been terminated shall, at the request of the Trustee, the Trust Administrator, the
Master Servicer or the Back-Up Servicer, as applicable, but at the expense of such Replaced Servicer deliver to the assuming party
all documents and records relating to the applicable Mortgage Loans and an accounting of amounts collected and held by it and
otherwise use commercially reasonable efforts to effect the orderly and efficient transfer and assignment of such servicing, but only
to the extent of the Mortgage Loans serviced thereunder, to the assuming party. Notwithstanding anything to the contrary contained
herein, the termination of a Servicer under this Agreement shall not extend to any Sub-Servicer meeting the requirements of
Section 3.02(a) and otherwise servicing the related Mortgage Loans in accordance with the servicing provisions of this Agreement.
The Master Servicer, the Back-Up Servicer and each Servicer shall cooperate with the Trustee and the Trust
Administrator and any successor servicer in effecting the termination of a Replaced Servicer's responsibilities and rights hereunder,
including without limitation, the transfer to such successor for administration by it of all cash amounts which shall at the time be
credited by such Servicer to the applicable Collection Account or thereafter received with respect to the Mortgage Loans.
None of the Trustee, the Trust Administrator nor any other successor servicer shall be deemed to be in default
hereunder by reason of any failure to make, or any delay in making, any distribution hereunder or any portion thereof caused by
(a) the failure of the Master Servicer, the Back-Up Servicer or any Servicer to (i) deliver, or any delay in delivering, cash,
documents or records to it, or (ii) cooperate as required by this Agreement, or (b) restrictions imposed by any regulatory authority
having jurisdiction over the Master Servicer, the Back-Up Servicer or the related Servicer.
Any successor to a Servicer as servicer shall during the term of its service as servicer maintain in force the
policy or policies that such Servicer is required to maintain pursuant to Section 3.09(b) hereof.
If a Servicer that has been terminated fails to pay all costs related to the transition of servicing to the
successor Servicer, the successor Servicer shall be entitled to reimbursement of those amounts from the Trust.
In connection with the termination or resignation of a Servicer hereunder, either (i) the successor Servicer,
including the Trust Administrator or Master Servicer if either of such parties is acting as successor Servicer or Back-Up Servicer,
shall represent and warrant that it or an affiliate 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 related Mortgage Loans that are registered
with MERS, or (ii) the Replaced Servicer, at its sole expense, shall cooperate with the successor Servicer either (x) in causing MERS
to execute and deliver an Assignment of Mortgage in recordable form to transfer the Mortgage from MERS to the Trustee 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(R) System to the successor Servicer or (y) in causing MERS to designate on
the MERS(R) System the successor Servicer as the servicer of such Mortgage Loan (at the cost and expense of the successor Servicer to
the extent such costs relate to the qualification of such successor Servicer as a member of MERS, otherwise at the cost and expense
of the Replaced Servicer). The Replaced Servicer shall file or cause to be filed any such assignment in the appropriate recording
office. The successor Servicer shall cause such assignment to be delivered to the Trustee promptly upon receipt of the original with
evidence of recording thereon or a copy certified by the public recording office in which such assignment was recorded.
SECTION 8.03. Notification to Certificateholders.
(a) Upon any termination or appointment of a successor to the Master Servicer or any Servicer, the Trust Administrator shall
give prompt written notice thereof to the Seller and the Certificateholders at their respective addresses appearing in the
Certificate Register and to the Rating Agencies, or, as applicable, the Master Servicer shall give prompt written notice thereof to
the Trust Administrator.
(b) Within two Business Days after the occurrence of any Event of Default, the Trust Administrator shall transmit by mail to the
Seller and all Certificateholders, and the Rating Agencies notice of each such Event of Default hereunder known to the Trust
Administrator, unless such Event of Default shall have been cured or waived.
SECTION 8.04. Waiver of Events of Default.
The Holders representing at least 66% of the Voting Rights of Certificates affected by a default or Event of Default
hereunder may waive any default or Event of Default; provided, however, that (a) a default or Event of Default under clause (g) of
Section 8.01 may be waived, only by all of the Holders of Certificates affected by such default or Event of Default and (b) no waiver
pursuant to this Section 8.04 shall affect the Holders of Certificates in the manner set forth in Section 12.01(b)(i), (ii) or
(iii). Upon any such waiver of a default or Event of Default by the Holders representing the requisite percentage of Voting Rights
of Certificates affected by such default or Event of Default, such default or Event of Default shall cease to exist and shall be
deemed to have been cured and remedied for every purpose hereunder. No such waiver shall extend to any subsequent or other default
or Event of Default or impair any right consequent thereon except to the extent expressly so waived.
ARTICLE IX
CONCERNING THE TRUSTEE
SECTION 9.01. Duties of Trustee.
The Trustee, prior to the occurrence of an Event of Default and after the curing or waiver of all Events of Default
that may have occurred, undertakes with respect to the Trust Fund to perform such duties and only such duties as are specifically set
forth in this Agreement. In case an Event of Default of which a Responsible Officer of the Trustee shall have actual knowledge has
occurred and remains uncured, the Trustee 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 person would exercise or use under the circumstances in the conduct of
such person's own affairs. Any permissive right of the Trustee set forth in this Agreement shall not be construed as a duty.
The Trustee, upon receipt of all resolutions, certificates, statements, opinions, reports, documents, orders or
other instruments furnished to the Trustee that 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. The Trustee shall have no duty to
recompute, recalculate or verify the accuracy of any resolution, certificate, statement, opinion, report, document, order or other
instrument so furnished to the Trustee. If any such instrument is found not to conform in any material respect to the requirements
of this Agreement, the Trustee shall notify the Certificateholders of such instrument in the event that the Trustee, after so
requesting, does not receive a satisfactorily corrected instrument.
No provision of this Agreement shall be construed to relieve the Trustee from liability for its own negligent
action, its own negligent failure to act or its own misconduct, its negligent failure to perform its obligations in compliance with
this Agreement, or any liability which would be imposed by reason of its willful misfeasance or bad faith; provided, however, that:
(a) prior to the occurrence of an Event of Default of which a Responsible Officer of the Trustee shall have actual knowledge,
and after the curing or of all such Events of Default that may have occurred, the duties and obligations of the Trustee shall be
determined solely by the express provisions of this Agreement, the Trustee shall not be personally 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 and the Trustee 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 and conforming to the requirements of
this Agreement which it reasonably believed in good faith to be genuine and to have been duly executed by the proper authorities
respecting any matters arising hereunder;
(b) the Trustee shall not be personally liable for an error of judgment made in good faith by a Responsible Officer or
Responsible Officers of the Trustee, unless the Trustee was negligent in ascertaining or investigating the pertinent facts;
(c) the Trustee shall not be personally liable with respect to any action taken, suffered or omitted to be taken by it in good
faith in accordance with this Agreement at the direction of the Holders of Certificates evidencing greater than 50% of the Voting
Rights allocated to each Class of Certificates relating to the time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Agreement;
(d) no provision of this Agreement shall require the Trustee to expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers if it shall have
reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably
assured to it; and
(e) the Trustee shall have no responsibility for any act or omission of the Trust Administrator or LaSalle, it being understood
and agreed that the Trustee, Trust Administrator and LaSalle are independent contractors and not agents, partners or joint venturers.
The Trustee shall not be deemed to have knowledge of any Event of Default or event which, with notice or lapse of
time, or both, would become an Event of Default, unless a Responsible Officer of the Trustee shall have received written notice
thereof from a Servicer, the Depositor or a Certificateholder, or a Responsible Officer of the Trustee has actual notice thereof, and
in the absence of such notice no provision hereof requiring the taking of any action or the assumption of any duties or
responsibility by the Trustee following the occurrence of any Event of Default or event which, with notice or lapse of time or both,
would become an Event of Default, shall be effective as to the Trustee.
The Trustee shall have no duty hereunder with respect to any complaint, claim, demand, notice or other document it
may receive or which may be alleged to have been delivered to or served upon it by the parties as a consequence of the assignment of
any Mortgage Loan hereunder; provided, however, that the Trustee shall use its best efforts to remit to the Master Servicer or the
related Servicer upon receipt of any such complaint, claim, demand, notice or other document (i) which is delivered to the Corporate
Trust Office of the Trustee, (ii) of which a Responsible Officer has actual knowledge, and (iii) which contains information
sufficient to permit the Trustee to make a determination that the real property to which such document relates is a Mortgaged
Property.
SECTION 9.02. Certain Matters Affecting the Trustee.
(a) Except as otherwise provided in Section 9.01:
(i) the Trustee may request and rely upon and shall be protected in acting or refraining from acting upon any resolution,
Officer's Certificate, certificate of auditors, Servicing Officers or any other certificate, statement, instrument, opinion,
report, notice, request, consent, order, appraisal, bond or other paper or document believed by it to be genuine and to have
been signed or presented by the proper party or parties;
(ii) the Trustee may consult with counsel, financial advisors or accountants and any advice of such Persons or 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 advice or Opinion of Counsel;
(iii) the Trustee shall be under no obligation to exercise any of the trusts 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 pursuant to the provisions of this Agreement, unless such Certificateholders shall have offered to the
Trustee reasonable security or indemnity against the costs, expenses and liabilities which may be incurred therein or
thereby; nothing contained herein shall, however, relieve the Trustee of the obligation, upon the occurrence of an Event of
Default of which a Responsible Officer of the Trustee shall have 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 or use under the circumstances in the conduct of such person's own affairs;
(iv) the Trustee shall not 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 an Event of Default hereunder and after the curing or waiver of all Events of Default that may
have occurred, the Trustee shall not 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
document, unless requested in writing so to do by Holders of Certificates evidencing greater than 50% of the Voting Rights
allocated to each Class of Certificates; provided, however, that if the payment within a reasonable time to the Trustee 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, not reasonably assured to the Trustee by the security afforded to it by the terms of this Agreement, the Trustee
may require reasonable indemnity against such expense or liability as a condition to taking any such action; the reasonable
expense of every such investigation shall be paid (A) by the Master Servicer or by the applicable Servicer in the event that
such investigation relates to an Event of Default by the Master Servicer or by such Servicer, respectively, if an Event of
Default by the Master Servicer or by such Servicer shall have occurred and is continuing, and (B) otherwise by the
Certificateholders requesting the investigation;
(vi) the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or
through agents or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any
such agent or attorney appointed with due care;
(vii) the Trustee shall not be required to expend its own funds or otherwise incur any financial liability in the performance of
any of its duties hereunder if it shall have reasonable grounds for believing that repayment of such funds or adequate
indemnity against such liability is not assured to it;
(viii) the Trustee shall not be liable for any loss on any investment of funds pursuant to this Agreement; and
(ix) the right of the Trustee to perform any discretionary act enumerated in this Agreement shall not be construed as a duty, and
the Trustee shall not be answerable for other than its negligence or willful misconduct in the performance of such act.
(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 9.03. Trustee Not Liable for Certificates or Mortgage Loans.
The recitals contained herein shall be taken as the statements of the Depositor or the Master Servicer or a
Servicer, as the case may be, and the Trustee assumes no responsibility for their correctness. The Trustee makes no representations
as to the validity or sufficiency of this Agreement, the Certificates or of any Mortgage Loan or related document or of MERS or the
MERS(R) System. The Trustee shall not be accountable for the use or application by the Depositor, the Seller, the Master Servicer or
any Servicers of any funds paid to the Depositor or the Master Servicer or any Servicer in respect of the Mortgage Loans or deposited
in or withdrawn from the Certificate Account by the Depositor, the Seller, the Master Servicer or the Servicers. The Trustee shall
not be responsible for the legality or validity of this Agreement or the validity, priority, perfection or sufficiency of the
security for the Certificates issued or intended to be issued hereunder. The Trustee shall have no responsibility for filing any
financing or continuation statement in any public office at any time or to otherwise perfect or maintain the perfection of any
security interest or lien granted to it hereunder or to record this Agreement.
SECTION 9.04. Trustee May Own Certificates.
The Trustee in its individual or any other capacity may become the owner or pledgee of Certificates and may transact
business with the other parties hereto and with their Affiliates, with the same rights as it would have if it were not the Trustee.
SECTION 9.05. Trustee's Fees and Expenses.
The Trustee shall be compensated by the Trust Administrator as separately agreed. The Trustee and any director,
officer, employee or agent of the Trustee shall be indemnified by DLJMC and held harmless (up to a maximum of $150,000) against any
loss, liability or expense (including reasonable attorney's fees and expenses) (i) incurred in connection with any claim or legal
action relating to (a) this Agreement, (b) the Certificates, or (c) the performance of any of the Trustee's duties hereunder, other
than any loss, liability or expense incurred by reason of willful misconduct, bad faith or negligence in the performance of any of
the Trustee's duties hereunder or incurred by reason of any action of the Trustee taken at the direction of the Certificateholders
and (ii) resulting from any error in any tax or information return prepared by the Master Servicer or a Servicer. Such indemnity
shall survive the termination of this Agreement or the resignation or removal of the Trustee hereunder. Without limiting the
foregoing, the Depositor covenants and agrees, except as otherwise agreed upon in writing by the Depositor and the Trustee, and
except for any such expense, disbursement or advance as may arise from the Trustee's negligence, bad faith or willful misconduct, to
pay or reimburse the Trustee, for all reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance
with any of the provisions of this Agreement with respect to: (A) the reasonable compensation and the expenses and disbursements of
its counsel not associated with the closing of the issuance of the Certificates, (B) the reasonable compensation, expenses and
disbursements of any accountant, engineer or appraiser that is not regularly employed by the Trustee, to the extent that the Trustee
must engage such persons to perform acts or services hereunder and (C) printing and engraving expenses in connection with preparing
any Definitive Certificates. Except as otherwise provided herein, the Trustee shall not be entitled to payment or reimbursement for
any routine ongoing expenses incurred by the Trustee in the ordinary course of its duties as Trustee hereunder or for any other
expenses. Anything in this Agreement to the contrary notwithstanding, in no event shall the Trustee be liable for special, indirect
or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even if the Trustee has been
advised of the likelihood of such loss or damage and regardless of the form of action.
SECTION 9.06. Eligibility Requirements for Trustee.
The Trustee hereunder shall at all times be a corporation or association organized and doing business under the laws
of any state or the United States of America, authorized under such laws to exercise corporate trust powers, having ratings on its
long term debt obligations at the time of such appointment in at least the third highest rating category by both Xxxxx'x and S&P
(provided that if such rating is in the third highest rating category of S&P, the Trustee shall also have a short-term rating from
S&P of A-1) or such lower ratings as will not cause Xxxxx'x or S&P to lower their then current ratings of the Class A Certificates
(other than the Class 6-X and Residual Certificates), 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 corporation or association 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 9.06 the combined capital and surplus of such corporation or association shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. In case at any time the Trustee shall cease to be eligible
in accordance with the provisions of this Section 9.06, the Trustee shall resign immediately in the manner and with the effect
specified in Section 9.07 hereof.
SECTION 9.07. Resignation and Removal of Trustee.
The Trustee may at any time resign and be discharged from the trusts hereby created by (a) giving written notice of
resignation to the Depositor, DLJMC, the Trust Administrator, the Master Servicer, the Special Servicer and the Servicers and by
mailing notice of resignation by first class mail, postage prepaid, to the Certificateholders at their addresses appearing on the
Certificate Register, and to the Rating Agencies, not less than 60 days before the date specified in such notice when, subject to
Section 9.08, such resignation is to take effect, and (b) acceptance by a successor trustee in accordance with Section 9.08 meeting
the qualifications set forth in Section 9.06.
If at any time the Trustee shall cease to be eligible in accordance with the provisions of Section 9.06 hereof and
shall fail to resign after written request thereto by the Depositor, or if at any time the Trustee shall become incapable of acting,
or shall be adjudged a bankrupt or insolvent, or a receiver of the Trustee or of its property shall be appointed, or any public
officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or
liquidation or if the Trustee breaches any of its obligations or representations hereunder, then the Depositor may remove the Trustee
and appoint a successor trustee by written instrument, in duplicate, one copy of which instrument shall be delivered to the Trustee
and one copy to the successor trustee. The Trustee may also be removed at any time by the Holders of Certificates evidencing not
less than 50% of the Voting Rights evidenced by the Certificates. Notice of any removal of the Trustee and acceptance of appointment
by the successor trustee shall be given to the Rating Agencies by the Depositor.
If no successor trustee shall have been so appointed and have accepted appointment within 30 days after the giving
of such notice of resignation or receipt of a notice of removal, the resigning Trustee may, at the Trust Fund's expense, petition any
court of competent jurisdiction for the appointment of a successor trustee.
Any resignation or removal of the Trustee and appointment of a successor trustee pursuant to any of the provisions
of this Section 9.07 shall become effective upon acceptance of appointment by the successor trustee as provided in Section 9.08
hereof.
SECTION 9.08. Successor Trustee.
Any successor trustee appointed as provided in Section 9.07 hereof shall execute, acknowledge and deliver to the
Depositor and to its predecessor trustee an instrument accepting such appointment hereunder and thereupon the resignation or removal
of the predecessor trustee shall become effective and such successor trustee, without any further act, deed or conveyance, shall
become fully vested with all the rights, powers, duties and obligations of its predecessor hereunder, with the like effect as if
originally named as trustee herein. The Depositor, upon receipt of all amounts due it hereunder, and the predecessor trustee shall
execute and deliver such instruments and do such other things as may reasonably be required for more fully and certainly vesting and
confirming in the successor trustee all such rights, powers, duties, and obligations.
No successor trustee shall accept appointment as provided in this Section 9.08 unless at the time of such acceptance
such successor trustee shall be eligible under the provisions of Section 9.06 hereof and its acceptance shall not adversely affect
the then current rating of the Certificates.
Upon acceptance of appointment by a successor trustee as provided in this Section 9.08, the Depositor shall mail
notice of the succession of such trustee hereunder to all Holders of Certificates at their addresses as shown in the Certificate
Register. If the Depositor fails to mail such notice within ten days after acceptance of appointment by the successor trustee, the
successor trustee shall cause such notice to be mailed at the expense of the Depositor.
SECTION 9.09. Merger or Consolidation of Trustee.
Any Person into which the Trustee may be merged or converted or with which it may be consolidated or any Person
resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any Person succeeding to the
business of the Trustee, shall be the successor of the Trustee hereunder, provided that such Person shall be eligible under the
provisions of Section 9.06 hereof without the execution or filing of any paper or further act on the part of any of the parties
hereto, anything herein to the contrary notwithstanding.
SECTION 9.10. Appointment of Co-Trustee or Separate Trustee.
Notwithstanding any other provisions of this Agreement, at any time, for the purpose of meeting any legal
requirements of any jurisdiction in which any part of the Trust Fund or property securing any Mortgage Note may at the time be
located, the Master Servicer and the Trustee acting jointly shall have the power and shall execute and deliver all instruments to
appoint one or more Persons approved by the Trustee to act as co-trustee or co-trustees jointly with the Trustee, or separate trustee
or separate trustees, of all or any part of the Trust Fund, and to vest in such Person or Persons, in such capacity and for the
benefit of the applicable Certificateholders, such title to the Trust Fund, or any part thereof, and, subject to the other provisions
of this Section 9.10, such powers, duties, obligations, rights and trusts as the Master Servicer and the Trustee may consider
necessary or desirable. If the Master Servicer shall not have joined in such appointment within fifteen days after the receipt by it
of a request to do so, or in the case an Event of Default shall have occurred and be continuing, 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 9.06 and no notice to Certificateholders of the appointment of any co-trustee or separate trustee
shall be required under Section 9.08.
Every separate trustee and co-trustee shall, to the extent permitted by law, be appointed and act subject to the
following provisions and conditions:
(a) all rights, powers, duties and obligations conferred or imposed upon the Trustee, except for any obligation of the Trustee
under this Agreement to advance funds on behalf of the Master Servicer or a Servicer, shall be conferred or imposed upon and
exercised or performed by the Trustee and such separate trustee or co-trustee jointly (it being understood that such separate trustee
or co-trustee is not authorized to act separately without the Trustee joining in such act), 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 the Master Servicer or a Servicer), 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 the Trust Fund or any portion thereof in
any such jurisdiction) shall be exercised and performed singly by such separate trustee or co-trustee, but solely at the direction of
the Trustee;
(b) no trustee hereunder shall be held personally liable by reason of any act or omission of any other trustee hereunder; and
(c) the Master Servicer and the Trustee acting jointly may at any time accept the resignation of or remove any separate trustee
or co-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 IX. Each separate trustee and co-trustee, upon its
acceptance of the trusts 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 Master Servicer or the Servicers and
the Depositor.
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. The Trust Administrator shall not be responsible for all action or inaction of any separate trustee or co-trustee.
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.
SECTION 9.11. Office of the Trustee.
The office of the Trustee for purposes of receipt of notices and demands is the Corporate Trust Office.
ARTICLE X
CONCERNING THE TRUST ADMINISTRATOR
SECTION 10.01. Duties of Trust Administrator.
The Trust Administrator, prior to the occurrence of an Event of Default of which a Responsible Officer of the Trust
Administrator shall have actual knowledge and after the curing or waiver of all Events of Default that may have occurred, undertakes
with respect to the Trust Fund to perform such duties and only such duties as are specifically set forth in this Agreement. In case
an Event of Default of which a Responsible Officer of the Trust Administrator shall have actual knowledge has occurred and remains
uncured, 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 person would exercise or use under the circumstances in the conduct of such
person's own affairs. Any permissive right of the Trust Administrator set forth in this Agreement shall not be construed as a duty.
The Trust Administrator, upon receipt of all resolutions, certificates, statements, opinions, reports, documents,
orders or other instruments furnished to the Trust Administrator that 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. The Trust
Administrator shall have no duty to recompute, recalculate or verify the accuracy of any resolution, certificate, statement, opinion,
report, document, order or other instrument so furnished to the Trust Administrator. If any such instrument is found not to conform
in any material respect to the requirements of this Agreement, the Trust Administrator shall notify the Certificateholders of such
instrument in the event that the Trust Administrator, after so requesting, does not receive a satisfactorily corrected instrument.
No provision of this Agreement shall be construed to relieve the Trust Administrator from liability for its own
negligent action, its own negligent failure to act or its own misconduct, its negligent failure to perform its obligations in
compliance with this Agreement, or any liability which would be imposed by reason of its willful misfeasance or bad faith; provided,
however, that:
(a) prior to the occurrence of an Event of Default of which a Responsible Officer of the Trust Administrator shall have actual
knowledge, and after the curing or of all such Events of Default that may have occurred, the duties and obligations of the Trust
Administrator shall be determined solely by the express provisions of this Agreement, the Trust Administrator shall not be personally
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 Trust Administrator and the Trust Administrator 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 Trust Administrator and conforming to the requirements of this Agreement which it reasonably believed in
good faith to be genuine and to have been duly executed by the proper authorities respecting any matters arising hereunder;
(b) the Trust Administrator shall not be personally liable for an error of judgment made in good faith by a Responsible Officer
or Responsible Officers of the Trust Administrator, unless the Trust Administrator was negligent in ascertaining or investigating the
pertinent facts;
(c) the Trust Administrator shall not be personally liable with respect to any action taken, suffered or omitted to be taken by
it in good faith in accordance with this Agreement or at the direction of the Holders of Certificates evidencing greater than 50% of
the Voting Rights allocated to each Class of Certificates relating to the time, method and place of conducting any proceeding for any
remedy available to the Trust Administrator, or exercising any trust or power conferred upon the Trust Administrator, under this
Agreement; and
(d) no provision of this Agreement shall require the Trust Administrator to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers if it shall
have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not
reasonably assured to it.
The Trust Administrator shall have no duty (A) to see to any recording, filing or depositing of this Agreement or
any agreement referred to herein or any financing statement or continuation statement evidencing a security interest, or to see to
the maintenance of any such recording, filing or depositing or to any rerecording, refiling or redepositing of any thereof, (B) to
see to any insurance, or (C) to see to the payment or discharge of any tax, assessment or other governmental charge or any lien or
encumbrance of any kind owing with respect to, assessed or levied against, any part of the Trust Fund other than from funds available
in the Certificate Account.
Except with respect to an Event of Default described in clause (a) of Section 8.01, the Trust Administrator shall
not be deemed to have knowledge of any Event of Default or event which, with notice or lapse of time, or both, would become an Event
of Default, unless a Responsible Officer of the Trust Administrator shall have received written notice thereof from the Master
Servicer or a Servicer, the Depositor, or a Certificateholder, or a Responsible Officer of the Trust Administrator has actual notice
thereof, and in the absence of such notice no provision hereof requiring the taking of any action or the assumption of any duties or
responsibility by the Trust Administrator following the occurrence of any Event of Default or event which, with notice or lapse of
time or both, would become an Event of Default, shall be effective as to the Trust Administrator.
The Trust Administrator shall have no duty hereunder with respect to any complaint, claim, demand, notice or other
document it may receive or which may be alleged to have been delivered to or served upon it by the parties as a consequence of the
assignment of any Mortgage Loan hereunder; provided, however, that the Trust Administrator shall use its best efforts to remit to the
Master Servicer or the Servicer upon receipt of any such complaint, claim, demand, notice or other document (i) which is delivered to
the Corporate Trust Office of the Trust Administrator, (ii) of which a Responsible Officer has actual knowledge, and (iii) which
contains information sufficient to permit the Trust Administrator to make a determination that the real property to which such
document relates is a Mortgaged Property.
SECTION 10.02. Certain Matters Affecting the Trust Administrator.
(a) Except as otherwise provided in Section 10.01:
(i) the Trust Administrator may request and rely upon and shall be protected in acting or refraining from acting upon any
resolution, Officer's Certificate, certificate of auditors, Servicing Officers or any other certificate, statement,
instrument, opinion, report, notice, request, consent, order, appraisal, bond or other paper or document believed by it to
be genuine and to have been signed or presented by the proper party or parties;
(ii) the Trust Administrator may consult with counsel, financial advisors or accountants and any advice of such Persons or
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 advice or opinion of counsel;
(iii) the Trust Administrator shall be under no obligation to exercise any of the trusts 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 pursuant to the provisions of this Agreement, unless such Certificateholders shall have offered to
the Trust Administrator reasonable security or indemnity against the costs, expenses and liabilities which may be incurred
therein or thereby; nothing contained herein shall, however, relieve the Trust Administrator of the obligation, upon the
occurrence of an Event of Default of which a Responsible Officer of the Trust Administrator shall have 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 or use under the circumstances in the
conduct of such person's own affairs;
(iv) the Trust Administrator shall not 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 an Event of Default hereunder and after the curing or waiver of all Events of Default that may
have occurred, the Trust Administrator shall not 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 document, unless requested in writing so to do by Holders of Certificates evidencing greater than 50% of the Voting
Rights allocated to each Class of Certificates; provided, however, that if the payment within a reasonable time to the Trust
Administrator of the costs, expenses or liabilities likely to be incurred by it in the making of such investigation is, in
the opinion of the Trust Administrator, not reasonably assured to the Trust Administrator by the security afforded to it by
the terms of this Agreement, the Trust Administrator may require reasonable indemnity against such expense or liability as a
condition to taking any such action; the reasonable expense of every such investigation shall be paid (A) by the Master
Servicer or by the applicable Servicer in the event that such investigation relates to an Event of Default by the Master
Servicer or by such Servicer, respectively, if an Event of Default by the Master Servicer or such Servicer shall have
occurred and is continuing, and (B) otherwise by the Certificateholders requesting the investigation;
(vi) 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 and the Trust Administrator shall not be responsible for any misconduct or negligence on
the part of any such agent or attorney appointed with due care;
(vii) the Trust Administrator shall not be required to expend its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder if it shall have reasonable grounds for believing that repayment of such funds or
adequate indemnity against such liability is not assured to it;
(viii) the Trust Administrator shall not be liable for any loss on any investment of funds pursuant to this Agreement except as
provided in Section 3.05(e);
(ix) the right of the Trust Administrator to perform any discretionary act enumerated in this Agreement shall not be construed as
a duty, and the Trust Administrator shall not be answerable for other than its negligence or willful misconduct in the
performance of such act; and
(x) The Trust Administrator shall not be required to give any bond or surety in respect of the execution of the Trust Fund
created hereby or the powers granted hereunder.
(b) All rights of action under this Agreement or under any of the Certificates, enforceable by the Trust Administrator, 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 Trust Administrator shall be brought in its name for the benefit
of all the Holders of such Certificates, subject to the provisions of this Agreement.
SECTION 10.03. Trust Administrator Not Liable for Certificates or Mortgage Loans.
The recitals contained herein shall be taken as the statements of the Depositor or the Master Servicer or a
Servicer, as the case may be, and the Trust Administrator assumes no responsibility for their correctness. The Trust Administrator
makes no representations as to the validity or sufficiency of this Agreement, the Certificates or of any Mortgage Loan or related
document. The Trust Administrator shall not be accountable for the use or application by the Depositor, the Seller, the Master
Servicer or the Servicers of any funds paid to the Depositor or the Master Servicer or any Servicer in respect of the Mortgage Loans
or deposited in or withdrawn from the Certificate Account by the Depositor, the Seller, the Master Servicer or the Servicers. The
Trust Administrator shall not be responsible for the legality or validity of this Agreement or the validity, priority, perfection or
sufficiency of the security for the Certificates issued or intended to be issued hereunder. The Trust Administrator shall have no
responsibility for filing any financing or continuation statement in any public office at any time or to otherwise perfect or
maintain the perfection for any security interest or lien granted to it hereunder or to record this Agreement.
SECTION 10.04. Trust Administrator May Own Certificates.
The Trust Administrator in its individual or any other capacity may become the owner or pledgee of Certificates with
the same rights as it would have if it were not the Trust Administrator.
SECTION 10.05. Trust Administrator's Fees and Expenses.
As compensation for its services hereunder, the Trust Administrator shall be entitled to the investment income or
other benefit derived from balances in the Certificate Account pursuant to Section 3.05(e) (the "Trust Administrator Fee"). The
Trust Administrator and any director, officer, employee or agent of the Trust Administrator shall be indemnified by DLJMC (or if
DLJMC shall fail to do so, by the Trust) and held harmless against any loss, liability or expense (including reasonable attorney's
fees and expenses) (i) incurred in connection with any claim or legal action relating to (a) this Agreement, (b) the Certificates,
(c) the Custodial Agreement, or (d) the performance of any of the Trust Administrator's duties hereunder or under the Custodial
Agreement, other than any loss, liability or expense incurred by reason of willful misfeasance, bad faith or negligence in the
performance of any of the Trust Administrator's duties hereunder or incurred by reason of any action of the Trust Administrator taken
at the direction of the Certificateholders and (ii) resulting from any error in any tax or information return prepared by the Master
Servicer or a Servicer; provided, however, that the sum of (x) such indemnity amounts payable by DLJMC or the Trust to the Trust
Administrator pursuant to this Section 10.05 and (y) the indemnity amounts payable by DLJMC or the Trust to the Master Servicer
pursuant to Section 3.14(c), shall not exceed $200,000 per year; provided, further, that any amounts not payable by DLJMC or the
Trust to the Trust Administrator due to the preceding proviso shall be payable by DLJMC (or if DLJMC fails to do so, by the Trust) in
any succeeding year, subject to the aggregate $200,000 per annum limitation imposed by the preceding proviso. Such indemnity shall
survive the termination of this Agreement or the resignation or removal of the Trust Administrator hereunder. Without limiting the
foregoing, DLJMC (or if DLJMC fails to do so, the Trust) shall, except as otherwise agreed upon in writing by DLJMC and the Trust
Administrator, and except for any such expense, disbursement or advance as may arise from the Trust Administrator's negligence, bad
faith or willful misconduct, pay or reimburse the Trust Administrator (up to a maximum of $150,000), for all reasonable expenses,
disbursements and advances incurred or made by the Trust Administrator in accordance with any of the provisions of this Agreement
with respect to: (A) the reasonable compensation and the expenses and disbursements of its counsel not associated with the closing
of the issuance of the Certificates, (B) the reasonable compensation, expenses and disbursements of any accountant, engineer or
appraiser that is not regularly employed by the Trust Administrator, to the extent that the Trust Administrator must engage such
persons to perform acts or services hereunder and (C) printing and engraving expenses in connection with preparing any Definitive
Certificates. In addition, DLJMC (or if DLJMC fails to do so, the Trust) shall pay or reimburse the Trust Administrator for
recertification fees required to be paid by the Trust Administrator pursuant to the Custodial Agreement. Except as otherwise
provided herein, the Trust Administrator shall not be entitled to payment or reimbursement for any routine ongoing expenses incurred
by the Trust Administrator in the ordinary course of its duties as Trust Administrator, Registrar, Tax Matters Person or Paying Agent
hereunder. Anything in this Agreement to the contrary notwithstanding, in no event shall the Trust Administrator be liable for
special, indirect or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even if the
Trust Administrator has been advised of the likelihood of such loss or damage and regardless of the form of action.
SECTION 10.06. Eligibility Requirements for Trust Administrator.
The Trust Administrator hereunder shall at all times be (a) an institution the deposits of which are fully insured
by the FDIC and (b) a corporation or banking association organized and doing business under the laws of any state or the United
States of America, 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 and (c) with respect to every successor Trust
Administrator hereunder an institution the long-term unsecured debt obligations of which are rated at least Baa3 or better by Xxxxx'x
and BBB or better by S&P unless the failure of the Trust Administrator's long-term unsecured debt obligations to have such ratings
would not result in the lowering of the ratings originally assigned to any Class of Certificates. If such corporation or banking
association 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 10.06 the combined capital and surplus of such corporation or association
shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. In case at
any time the Trust Administrator shall cease to be eligible in accordance with the provisions of this Section 10.06, the Trust
Administrator shall resign immediately in the manner and with the effect specified in Section 10.07 hereof.
SECTION 10.07. Resignation and Removal of Trust Administrator.
The Trust Administrator may at any time resign and be discharged from the trusts hereby created by (a) giving
written notice of resignation to the Depositor, the Seller, the Trustee, the Master Servicer, the Special Servicer and the Servicers
and by mailing notice of resignation by first class mail, postage prepaid, to the Certificateholders at their addresses appearing on
the Certificate Register, and to the Rating Agencies, not less than 60 days before the date specified in such notice when, subject to
Section 10.08, such resignation is to take effect, and (b) acceptance by a successor trust administrator in accordance with
Section 10.08 meeting the qualifications set forth in Section 10.06.
If at any time the Trust Administrator shall cease to be eligible in accordance with the provisions of Section 10.06
hereof and shall fail to resign after written request thereto by the Depositor, or if at any time the Trust Administrator shall
become incapable of acting, or shall be adjudged a bankrupt or insolvent, or a receiver of the Trust Administrator or of its property
shall be appointed, or any public officer shall take charge or control of the Trust Administrator or of its property or affairs for
the purpose of rehabilitation, conservation or liquidation or if the Trust Administrator breaches any of its obligations or
representations hereunder, then the Depositor may remove the Trust Administrator and appoint a successor trust administrator by
written instrument, in duplicate, one copy of which instrument shall be delivered to the Trust Administrator and one copy to the
successor trust administrator. The Trust Administrator may also be removed at any time by the Trustee or the Holders of Certificates
evidencing not less than 50% of the Voting Rights evidenced by the Certificates. Notice of any removal of the Trust Administrator
and acceptance of appointment by the successor trust administrator shall be given to the Rating Agencies by the Depositor.
If no successor trust administrator shall have been so appointed and have accepted appointment within 30 days after
the giving of such notice of resignation or receipt of a notice of removal, the resigning Trust Administrator may, at the Trust
Fund's expense, petition any court of competent jurisdiction for the appointment of a successor trust administrator.
Notwithstanding the foregoing, if the Master Servicer shall for any reason no longer be Master Servicer hereunder,
at DLJMC's request, the Trust Administrator shall resign, upon the selection and appointment of a successor trust administrator
meeting the qualifications set forth in Section 10.06.
Any resignation or removal of the Trust Administrator and appointment of a successor trust administrator pursuant to
any of the provisions of this Section 10.07 shall become effective upon acceptance of appointment by the successor trust
administrator as provided in Section 10.08 hereof.
SECTION 10.08. Successor Trust Administrator.
Any successor trust administrator appointed as provided in Section 10.07 hereof shall execute, acknowledge and
deliver to the Depositor and to its predecessor trust administrator an instrument accepting such appointment hereunder and thereupon
the resignation or removal of the predecessor trust administrator shall become effective and such successor 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 the like effect as if originally named as Trust Administrator herein. The Depositor, upon receipt of all
amounts due it hereunder, and the predecessor trust administrator shall execute and deliver such instruments and do such other things
as may reasonably be required for more fully and certainly vesting and confirming in the successor trust administrator all such
rights, powers, duties, and obligations.
No successor trust administrator shall accept appointment as provided in this Section 10.08 unless at the time of
such acceptance such successor trust administrator shall be eligible under the provisions of Section 10.06 hereof and its acceptance
shall not adversely affect the then current rating of the Certificates.
Upon acceptance of appointment by a successor trust administrator as provided in this Section 10.08, the Depositor
shall mail notice of the succession of such trust administrator hereunder to all Holders of Certificates at their addresses as shown
in the Certificate Register. If the Depositor fails to mail such notice within ten days after acceptance of appointment by the
successor trust administrator, the successor trust administrator shall cause such notice to be mailed at the expense of the Depositor.
SECTION 10.09. Merger or Consolidation of Trust Administrator.
Any Person into which the Trust Administrator may be merged or converted or with which it may be consolidated or any
Person resulting from any merger, conversion or consolidation to which the Trust Administrator shall be a party, or any Person
succeeding to the business of the Trust Administrator, shall be the successor of the Trust Administrator hereunder, provided that
such Person shall be eligible under the provisions of Section 10.06 hereof without the execution or filing of any paper or further
act on the part of any of the parties hereto, anything herein to the contrary notwithstanding.
SECTION 10.10. Appointment of Co-Trust Administrator or Separate Trust Administrator.
Notwithstanding any other provisions of this Agreement, at any time, for the purpose of meeting any legal
requirements of any jurisdiction in which any part of the Trust Fund or property securing any Mortgage Note may at the time be
located, the Master Servicer and the Trust Administrator acting jointly shall have the power and shall execute and deliver all
instruments to appoint one or more Persons approved by the Trust Administrator to act as co-trust administrator or co-trust
administrators jointly with the Trust Administrator, or separate trust administrator or separate trust administrators, of all or any
part of the Trust Fund, and to vest in such Person or Persons, in such capacity and for the benefit of the applicable
Certificateholders, such title to the Trust Fund, or any part thereof, and, subject to the other provisions of this Section 10.10,
such powers, duties, obligations, rights and trusts as the Master Servicer and the Trust Administrator may consider necessary or
desirable. If the Master Servicer shall not have joined in such appointment within fifteen days after the receipt by it of a request
to do so, or in the case an Event of Default shall have occurred and be continuing, the Trust Administrator alone shall have the
power to make such appointment. No co-trust administrator or separate trust administrator hereunder shall be required to meet the
terms of eligibility as a successor trust administrator under Section 10.06 and no notice to Certificateholders of the appointment of
any co-trust administrator or separate trust administrator shall be required under Section 10.08.
Every separate trust administrator and co-trust administrator shall, to the extent permitted by law, be appointed
and act subject to the following provisions and conditions:
(a) all rights, powers, duties and obligations conferred or imposed upon the Trust Administrator, except for any obligation of
the Trust Administrator under this Agreement to advance funds on behalf of the Master Servicer or the Servicer, shall be conferred or
imposed upon and exercised or performed by the Trust Administrator and such separate trust administrator or co-trust administrator
jointly (it being understood that such separate trust administrator or co-trust administrator is not authorized to act separately
without the Trust Administrator joining in such act), except to the extent that under any law of any jurisdiction in which any
particular act or acts are to be performed by the Trust Administrator (whether as Trust Administrator hereunder or as successor to
the Master Servicer or the Servicer), the Trust Administrator 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 the Trust Fund or any portion thereof in
any such jurisdiction) shall be exercised and performed singly by such separate trust administrator or co-trust administrator, but
solely at the direction of the Trust Administrator;
(b) no trust administrator hereunder shall be held personally liable by reason of any act or omission of any other trust
administrator hereunder; and
(c) the Master Servicer and the Trust Administrator acting jointly may at any time accept the resignation of or remove any
separate trust administrator or co-trust administrator.
Any notice, request or other writing given to the Trust Administrator shall be deemed to have been given to each of
the then separate trust administrators and co-trust administrators, as effectively as if given to each of them. Every instrument
appointing any separate trust administrator or co-trust administrator shall refer to this Agreement and the conditions of this
Article X. Each separate trust administrator and co-trust administrator, upon its acceptance of the trusts conferred, shall be
vested with the estates or property specified in its instrument of appointment, either jointly with the Trust Administrator 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 Trust Administrator. Every
such instrument shall be filed with the Trust Administrator and a copy thereof given to the Master Servicer or the Servicers and the
Depositor.
Any separate trust administrator or co-trust administrator may, at any time, constitute the Trust Administrator, 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. The Trust Administrator shall not be responsible for any action or inaction
of any separate Trust Administrator or Co-Trust Administrator. If any separate trust administrator or co-trust administrator 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 Trust Administrator, to the extent permitted by law, without the appointment of a new or successor trust
administrator.
SECTION 10.11. Office of the Trust Administrator.
The office of the Trust Administrator for purposes of receipt of notices and demands is the Corporate Trust Office.
SECTION 10.12. Tax Return.
The Master Servicer and each Servicer, upon request, will furnish the Trust Administrator with all such information
related to the Mortgage Loans in the possession of the Master Servicer or such Servicer as may be reasonably required in connection
with the preparation by the Trust Administrator of all tax and information returns of the Trust Fund, and the Trust Administrator
shall sign such returns. The Master Servicer and each Servicer, severally and not jointly, shall indemnify the Trust Administrator
for all reasonable costs, including legal fees and expenses, related to errors in such tax returns due to errors only in such
information provided by the Master Servicer or by such Servicer.
SECTION 10.13. Determination of Certificate Index.
On each Interest Determination Date, the Trust Administrator shall determine each Certificate Index for the Accrual
Period and inform the Master Servicer of such rate and such rate shall be final and binding, absent a manifest error of the Trust
Administrator.
ARTICLE XI
TERMINATION
SECTION 11.01. Termination upon Liquidation or Purchase of all Mortgage Loans.
The obligations and responsibilities of the Master Servicer, the Special Servicer or the Servicers, the Back-Up
Servicer, the Sellers, the Depositor, the Trustee and the Trust Administrator created hereby with respect to the related Group or
Groups created hereby shall terminate upon the earlier of:
(a) (i) with respect to Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4 and Loan Group 5, the purchase by
the Terminating Entity, at its election, of all Mortgage Loans in such Loan Groups and all property acquired in respect of
any remaining Mortgage Loan in such Loan Groups, which purchase right the Terminating Entity may exercise at its sole and
exclusive election as of any Distribution Date (such applicable Distribution Date with respect to such Mortgage Loans being
herein referred to as the "Optional Termination Date") on or after the date on which the aggregate Principal Balance of the
Mortgage Loans in such Loan Groups, at the time of the purchase is less than or equal to 10% of the Aggregate Groups 1-5
Collateral Balance as of the Initial Cut-off Date; or
(ii) with respect to Loan Group 6, the purchase by the Terminating Entity, at its election, of all Mortgage Loans in such Loan
Group and all property acquired in respect of any remaining Mortgage Loan in such Loan Group, which purchase right the
Terminating Entity may exercise at its sole and exclusive election as of any Distribution Date (such applicable Distribution
Date with respect to such Mortgage Loans being herein referred to as the "Optional Termination Date") on or after the date
on which the aggregate Principal Balance of the Mortgage Loans in such Loan Group, at the time of the purchase is less than
or equal to 10% of the Aggregate Loan Group Balance for Loan Group 6 as of the Initial Cut-off Date.
(b) the later of (i) twelve months after the maturity of the last Mortgage Loan remaining in the Trust Fund, (ii) the
liquidation (or any advance with respect thereto) of the last Mortgage Loan remaining in the Trust Fund and the disposition of all
REO Property and (iii) the distribution to Certificateholders of all amounts required to be distributed to them pursuant to this
Agreement; or
(c) (i) with respect to Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4 and Loan Group 5, the purchase by the Terminating
Auction Purchaser of all Mortgage Loans in such Loan Groups and all property acquired in respect of any remaining Mortgage
Loan in such Loan Group (with respect to Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4 and Loan Group 5, the "Trust
Collateral") as described below; or
(ii) with respect to Loan Group 6, the purchase by the Terminating Auction Purchaser of all Mortgage
Loans in Loan Group 6 and all property acquired in respect of any remaining Mortgage Loan in such Loan Group (with respect
to Loan Group 6, the "Trust Collateral") as described below.
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 Xx. Xxxxxx X. Xxxxxxx, former Ambassador of the United States to Great Britain,
living on the date of execution of this Agreement or (ii) the Distribution Date following the third anniversary of the scheduled
maturity date of the Mortgage Loan having the latest scheduled maturity date as of the related Cut-off Date.
The "Mortgage Loan Purchase Price" for any such Optional Termination shall be equal to the greater of (a) the sum of
(i) 100% of the Stated Principal Balance of each Mortgage Loan in the applicable Loan Group(s) (other than in respect of
REO Property) plus accrued and unpaid interest thereon from the date to which such interest was paid or advanced at the applicable
Mortgage Rate, to but not including the Due Date in the month of the final Distribution Date (or the Net Mortgage Rate with respect
to any related Mortgage Loan currently serviced by the entity exercising such Optional Termination) and (ii) with respect to any
REO Property, the lesser of (x) the appraised value of any REO Property as determined by the higher of two appraisals completed by two
independent appraisers selected by the Depositor at the expense of the Depositor and (y) the Stated Principal Balance of each related
Mortgage Loan related to any REO Property, in each case and (iii) any remaining unreimbursed Advances, Servicing Advances and unpaid
Servicing Fees (other than any remaining unreimbursed Advances and Servicing Advances and unpaid Servicing Fees, if any, due to the
Terminating Entity) and other amounts payable to the Trustee and Trust Administrator (the sum of (i), (ii) and (iii), collectively,
the "Par Value") and (b) the Fair Market Value of all of the property of the Trust related to the Loan Group(s) subject to such
Optional Termination.
The "Fair Market Value" shall be the fair market value of all of the property of the Trust related to the Loan
Group(s) subject to an Optional Termination, as agreed upon between the Terminating Entity and a majority of the holders of the
Class AR-L Certificates; provided, however, that if the Terminating Entity and a majority of the holders of the Class AR-L
Certificates do not agree upon the fair market value of such property of the Trust, the Terminating Entity, or an agent appointed by
the Terminating Entity, shall solicit bids for such property of the Trust until it has received three bids, and the Fair Market Value
shall be equal to the highest of such three bids. The Trust Administrator shall give notice to the Rating Agencies of any election
to purchase Mortgage Loans pursuant to this Section and of the applicable Optional Termination Date.
(d) On any Distribution Date on or after the date on which the aggregate Principal Balance of the Mortgage Loans in Loan
Group 1, Loan Group 2, Loan Group 3, Loan Group 4 and Loan Group 5 is less than 5% of the Aggregate Groups 1-5 Collateral Balance as
of the Initial Cut-off Date (a "Terminating Auction Date"), the Trust Administrator shall solicit bids for the related Trust
Collateral from at least three institutions that are regular purchasers and/or sellers in the secondary market of residential whole
mortgage loans similar to the Mortgage Loans. If the Trust Administrator receives at least three bids for the related Trust
Collateral, and one of such bids is equal to or greater than the Par Value, the Trust Administrator shall sell the related Trust
Collateral to the highest bidder (a "Terminating Auction Purchaser") at the price offered by the Terminating Auction Purchaser (a
"Mortgage Loan Terminating Auction Price"); provided, however, that the Seller shall be disqualified from being and may not be a
Terminating Auction Purchaser. If the Trust Administrator receives less than three bids, or does not receive any bid that is equal
to or greater than the Par Value, the Trust Administrator shall, on each six-month anniversary of the initial Terminating Auction
Date, repeat these auction procedures until the Trust Administrator receives a bid that is equal to or greater than the Par Value,
and upon receipt of such bid shall sell the related Trust Collateral to the Terminating Auction Purchaser at that Mortgage Loan
Terminating Auction Price; provided, however, that the Trust Administrator shall not be required to repeat these auction procedures
on any Distribution Date for any six-month anniversary of the initial Terminating Auction Date unless the Trust Administrator
reasonably believes that there is a reasonable likelihood of receiving a bid in excess of the Par Value. The Trust Administrator
shall give notice to the Rating Agencies and each Servicer that is servicing any of the related Mortgage Loans of the sale of the
related Trust Collateral pursuant to this Section 11.01 (a "Terminating Auction Sale") and of the Terminating Auction Date.
Notwithstanding anything to the contrary herein, the Terminating Auction Purchaser shall not be the Depositor, DLJMC or any of their
respective Affiliates.
(e) On any Distribution Date on or after the date on which the aggregate Principal Balance of the Mortgage Loans in Loan Group 6
is less than 5% of the Aggregate Loan Group Balance for Loan Group 6 as of the Initial Cut-off Date (a "Terminating Auction Date"),
the Trust Administrator shall solicit bids for the related Trust Collateral from at least three institutions that are regular
purchasers and/or sellers in the secondary market of residential whole mortgage loans similar to the Mortgage Loans. If the Trust
Administrator receives at least three bids for the related Trust Collateral, and one of such bids is equal to or greater than the Par
Value, the Trust Administrator shall sell the related Trust Collateral to the highest bidder (a "Terminating Auction Purchaser") at
the price offered by the Terminating Auction Purchaser (a "Mortgage Loan Terminating Auction Price"); provided, however, that the
Seller shall be disqualified from being and may not be a Terminating Auction Purchaser. If the Trust Administrator receives less
than three bids, or does not receive any bid that is equal to or greater than the Par Value, the Trust Administrator shall, on each
six-month anniversary of the initial Terminating Auction Date, repeat these auction procedures until the Trust Administrator receives
a bid that is equal to or greater than the Par Value, and upon receipt of such bid shall sell the related Trust Collateral to the
Terminating Auction Purchaser at that Mortgage Loan Auction Price; provided, however, that the Trust Administrator shall not be
required to repeat these auction procedures on any Distribution Date for any six-month anniversary of the initial Terminating Auction
Date unless the Trust Administrator reasonably believes that there is a reasonable likelihood of receiving a bid in excess of the Par
Value. The Trust Administrator shall give notice to the Rating Agencies and each Servicer that is servicing any of the related
Mortgage Loans of the sale of the related Trust Collateral pursuant to this Section 11.01 (a "Terminating Auction Sale") and of the
Terminating Auction Date. Notwithstanding anything to the contrary herein, the Terminating Auction Purchaser shall not be the
Depositor, DLJMC or any of their respective Affiliates.
SECTION 11.02. Determination of the Terminating Entity.
(a) If any Servicer intends to be the Terminating Entity, such party must give written notice to the Trust Administrator no
later than twenty (20) days prior to the first day of the Optional Termination Notice Period. Such notice shall also indicate the
Loan Group(s) of the Mortgage Loans to be repurchased. Upon receiving such notice, the Trust Administrator shall immediately request
from DLJMC and DLJMC shall deliver no later than seventeen (17) days prior to the first day of the Optional Termination Notice Period
a letter indicating whether or not DLJMC retains the servicing rights to any Mortgage Loan in any of the related Loan Groups.
(b) (A) With respect to the purchase of the Mortgage Loans in Loan Group 1, Loan Group 2, Loan Group 3, Loan
Group 4 and Loan Group 5, the Trust Administrator shall determine the "Terminating Entity" as follows:
(i) DLJMC, if it is the owner of the servicing rights with respect to any such Mortgage Loans
on the Optional Termination Date;
(ii) SPS, if (a) DLJMC is not the owner of the servicing rights with respect to any such
Mortgage Loans on the Optional Termination Date and (b) SPS is a Servicer with respect to any such Mortgage Loans on the
Optional Termination Date and SPS has given notice to the Trust Administrator pursuant to Section 11.02(a) above; or
(iii) the Majority Servicer on the Optional Termination Date, if (a) DLJMC is not the owner of
the servicing rights with respect to any such Mortgage Loans on the Optional Termination Date and (b) SPS has not given
notice to the Trust Administrator pursuant to Section 11.02(a) above.
(B) With respect to the purchase of the Mortgage Loans in Loan Group 6, the Trust Administrator shall
determine the "Terminating Entity" as follows:
(i) DLJMC, if it is the owner of the servicing rights with respect to any such Mortgage Loans
on the Optional Termination Date;
(ii) SPS, if (a) DLJMC is not the owner of the servicing rights with respect to any such
Mortgage Loans on the Optional Termination Date and (b) SPS is a Servicer with respect to any such Mortgage Loans on the
Optional Termination Date and SPS has given notice to the Trust Administrator pursuant to Section 11.02(a) above; or
(iii) the Majority Servicer on the Optional Termination Date, if (a) DLJMC is not the owner of
the servicing rights with respect to any such Mortgage Loans on the Optional Termination Date and (b) SPS has not given
notice to the Trust Administrator pursuant to Section 11.02(a) above.
(c) No later than fifteen (15) days prior to the first day of the Optional Termination Notice Period, the Trust Administrator
shall provide notice to each Servicer that is a servicer of any of the Mortgage Loans in the related Loan Group(s) of the identity of
the Terminating Entity for such Loan Group(s).
SECTION 11.03. Procedure Upon Optional Termination or Terminating Auction Sale.
(a) In case of any Optional Termination, the Terminating Entity shall, no later than ten (10) days prior to the first day of the
Optional Termination Notice Period, notify the Trustee and Trust Administrator of such Optional Termination Date and of the
applicable purchase price of the Mortgage Loans to be purchased. Upon purchase by the Terminating Entity of any Mortgage Loans
pursuant to Section 11.01, the Trust Administrator shall notify each Servicer that is servicing any of such Mortgage Loans of such
purchase.
(b) Any purchase of the Mortgage Loans by the Terminating Entity shall be made on an Optional Termination Date by deposit of the
applicable purchase price into the Certificate Account, as applicable, before the Distribution Date on which such purchase is
effected. Upon receipt by the Trust Administrator of an Officer's Certificate of the Terminating Entity certifying as to the deposit
of such purchase price into the Certificate Account, the Trustee, the Trust Administrator and each co-trust administrator and
separate trust administrator, if any, then acting as such under this Agreement, shall, upon request and at the expense of the
Terminating Entity execute and deliver all such instruments of transfer or assignment, in each case without recourse, as shall be
reasonably requested by the Terminating Entity to vest title in the Terminating Entity in the Mortgage Loans so purchased and shall
transfer or deliver to the Terminating Entity the purchased Mortgage Loans. Any distributions on the Mortgage Loans which have been
subject to an Optional Termination received by the Trust Administrator subsequent to (or with respect to any period subsequent to)
the Optional Termination Date shall be promptly remitted by it to the Terminating Entity.
(c) Any purchase of the Trust Collateral by the related Terminating Auction Purchaser shall be made on an Terminating Auction
Date by receipt of the Trust Administrator of the related Mortgage Loan Terminating Auction Price from the Terminating Auction
Purchaser, and deposit of such Mortgage Loan Terminating Auction Price into the Certificate Account by the Trust Administrator before
the Distribution Date on which such purchase is effected. Upon deposit of such purchase price into the Certificate Account, the
Trustee and the Trust Administrator and each co-trust administrator and separate trust administrator, if any, then acting as such
under this Agreement, shall, upon request and at the expense of the Terminating Auction Purchaser execute and deliver all such
instruments of transfer or assignment, in each case without recourse, as shall be reasonably requested by the Terminating Auction
Purchaser to vest title in the Terminating Auction Purchaser in the Trust Collateral so purchased and shall transfer or deliver to
the Terminating Auction Purchaser the purchased Trust Collateral.
(d) Notice of the Distribution Date on which the Trust Administrator anticipates that the final distribution shall be made on a
Class of Certificates (whether upon Optional Termination, Terminating Auction Sale or otherwise), shall be given promptly by the
Trust Administrator by first class mail to Holders of the affected Certificates. Such notice shall be mailed no earlier than the
15th day and not later than the 10th day preceding the applicable Optional Termination Date, Terminating Auction Date or date of
final distribution, as the case may be. Such notice shall specify (i) the Distribution Date upon which final distribution on the
affected Certificates will be made upon presentation and surrender of such Certificates at the office or agency therein designated,
(ii) the amount of such final distribution and (iii) that the Record Date otherwise applicable to such Distribution Date is not
applicable, such distribution being made only upon presentation and surrender of such Certificates at the office or agency maintained
for such purposes (the address of which shall be set forth in such notice).
(e) In the event that any Certificateholders shall not surrender Certificates for cancellation within six months after the date
specified in the above mentioned written notice, the Trust Administrator shall give a second written notice to the remaining such
Certificateholders to surrender their Certificates for cancellation and receive the final distribution with respect thereto. If
within six months after the second notice all the Certificates shall not have been surrendered for cancellation, the Trust
Administrator may take appropriate steps, or may appoint an agent to take appropriate steps, to contact the remaining
Certificateholders concerning surrender of their Certificates, and the cost thereof shall be paid out of the funds and other assets
which remain subject to the Trust Fund.
(f) Notwithstanding anything to the contrary herein, the occurrence of an Optional Termination or Terminating Auction Sale shall
be subject to, and shall in no way adversely affect the right of Xxxxx Fargo to continue servicing and collecting its Servicing Fee
for any Xxxxx Fargo Serviced Mortgage Loan that remains outstanding at the time of such Optional Termination or Terminating Auction
Sale.
SECTION 11.04. Additional Termination Requirements.
(a) In the event the Terminating Entity exercises its purchase option pursuant to Section 11.01(A) or a Terminating Auction Sale
shall have occurred pursuant to Section 11.01(c), the related subsidiary REMIC shall be terminated in accordance with the following
additional requirements, unless the Trustee and the Trust Administrator have received an Opinion of Counsel to the effect that the
failure to comply with the requirements of this Section will not (i) result in the imposition of taxes on a "prohibited transaction"
of any REMIC created hereunder, as described in Section 860F of the Code, or (ii) cause any REMIC created hereunder to fail to
qualify as a REMIC at any time that any Certificates are outstanding:
(i) within 90 days prior to the final Distribution Date set forth in the notice given by Terminating Entity under Section 11.03,
the Holder of the Residual Certificates shall adopt a plan of complete liquidation for the related REMIC; and
(ii) at or after the time of adoption of any such plan of complete liquidation for such REMIC and at or prior to the final
Distribution Date, the Trustee shall sell all of the assets of such REMIC to the Depositor for cash.
(b) Upon the exercise of an Optional Termination by the Terminating Entity or upon the occurrence of a Terminating Auction Sale
in respect of either REMIC I or REMIC II, as applicable, pursuant to paragraph (a) of this Section, followed by the exercise of an
Optional Termination by the Terminating Entity or upon the occurrence of a Terminating Auction Sale in respect of the remaining
subsidiary REMIC (the "Remaining Subsidiary REMIC") pursuant to Section 11.01, each remaining REMIC shall be terminated in accordance
with the following additional requirements, unless the Trustee and the Trust Administrator have received an Opinion of Counsel to the
effect that the failure to comply with the requirements of this Section will not (i) result in the imposition of taxes on a
"prohibited transaction" of a REMIC, as described in Section 860F of the Code, or (ii) cause any REMIC created hereunder to fail to
qualify as a REMIC at any time that any Certificates are outstanding:
(i) concurrently with the adoption of the plan of complete liquidation of the Remaining Subsidiary REMIC, as set forth in
paragraph (a) of this Section, the Holder of the Residual Certificates, as applicable, shall adopt a plan of complete
liquidation of each remaining REMIC; and
(ii) at or after the time of adoption of any such plan of complete liquidation for each such remaining REMIC, at or prior to the
final Distribution Date of the Remaining Subsidiary REMIC to be terminated, the Trustee shall sell all of the assets of each
such remaining REMIC to the Depositor for cash.
(c) By its acceptance of a Residual Certificate, the Holder thereof hereby agrees to adopt such a plan of complete liquidation
and to take such other action in connection therewith as may be reasonably required to liquidate and otherwise terminate any REMIC
created pursuant to this Agreement.
ARTICLE XII
MISCELLANEOUS PROVISIONS
SECTION 12.01. Amendment.
(a) This Agreement may be amended from time to time by the Depositor, the Master Servicer, the Servicers, the Back-Up Servicer,
the Special Servicer, the Seller, the Trust Administrator and the Trustee, without the consent of any of the Certificateholders,
(i) to cure any error or ambiguity,
(ii) to correct or supplement any provisions herein that may be inconsistent with any other provisions herein or in the
Prospectus Supplement,
(iii) to modify, eliminate or add to any of its provisions to such extent as shall be necessary or desirable to maintain the
qualification of the Trust Fund as a REMIC at all times that any Certificate is outstanding or to avoid or minimize the risk
of the imposition of any federal income tax on the Trust Fund pursuant to the Code that would be a claim against the Trust
Fund, provided that the Trustee has received an Opinion of Counsel to the effect that (A) such action is necessary or
desirable to maintain such qualification or to avoid or minimize the risk of the imposition of any such federal income tax
and (B) such action will not adversely affect the status of the Trust Fund as a REMIC or adversely affect in any material
respect the interests of any Certificateholder,
(iv) in connection with the appointment of a successor servicer, to modify, eliminate or add to any of the servicing provisions,
provided the Rating Agencies confirm the rating of the Certificates, or
(v) to make any other provisions with respect to matters or questions arising under this Agreement that are not materially
inconsistent with the provisions of this Agreement, provided that such action shall not adversely affect in any material
respect the interests of any Certificateholder or cause an Adverse REMIC Event. Any Amendment pursuant to
Section 12.01(a)(v) shall not be deemed to adversely affect in any material respect the interests of any Certificateholder if
a letter is obtained from each Rating Agency stating that such amendment would not result in the downgrading or withdrawal
of the respective ratings then assigned to the Certificates; or to comply with the provisions of Regulation AB.
(b) Except as provided in Section 12.01(c), this Agreement may be amended from time to time by the Depositor, the Master
Servicer, the Servicers, the Back-Up Servicer, the Special Servicer, the Seller, the Trust Administrator and the Trustee with the
consent of the Holders of Certificates evidencing, in the aggregate, not less than 66 2/3% of the Voting Rights of all the
Certificates for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this
Agreement or of modifying in any manner the rights of the Holders of the Certificates; provided, however, that no such amendment may
(i) reduce in any manner the amount of, delay the timing of or change the manner in which payments received on or with respect to
Mortgage Loans are required to be distributed with respect to any Certificate without the consent of the Holder of such Certificate,
(ii) adversely affect in any material respect the interests of the Holders of a Class of Certificates in a manner other than as set
forth in (i) above without the consent of the Holders of Certificates evidencing not less than 66 2/3% of the Voting Rights of such
Class, (iii) reduce the aforesaid percentages of Voting Rights, the holders of which are required to consent to any such amendment
without the consent of 100% of the Holders of Certificates of the Class affected thereby, (iv) change the percentage of the Stated
Principal Balance of the Mortgage Loans specified in Section 11.01(a) relating to optional termination of the Trust Fund, (v) change
the percentage of the Stated Principal Balance of the Mortgage Loans specified in Sections 11.01(d) or (e) relating to a Terminating
Auction Sale, or (vi) modify the provisions of this Section 12.01.
It shall not be necessary for the consent of Certificateholders under this Section 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.
(c) This Agreement may be amended from time to time by the Depositor, the Master Servicer, the Special Servicer, the Servicers,
the Back-Up Servicer, the Trust Administrator and the Trustee for the purpose of making one or more REMIC elections with respect to
one or more Classes of Certificates delivered to the Trustee and issuing one or more additional classes of certificates representing
interests in the Classes of Certificates delivered to the Trustee; provided, however, such amendment shall require the consent of
100% of the Holders of the Certificates of the Class or Classes delivered to the Trust Administrator and such amendment shall not
cause an Adverse REMIC Event.
(d) Promptly after the execution of any amendment to this Agreement, the Trust Administrator shall furnish written notification
of the substance of such amendment to each Certificateholder, and the Rating Agencies.
(e) Prior to the execution of any amendment to this Agreement, each of the Trustee and the Trust Administrator shall receive and
be entitled to conclusively rely on an Opinion of Counsel (at the expense of the Person seeking such amendment) stating that the
execution of such amendment is authorized and permitted by this Agreement. The Trustee and the Trust Administrator may, but shall
not be obligated to, enter into any such amendment which affects the Trustee's or the Trust Administrator's own rights, duties or
immunities under this Agreement.
(f) The Master Servicer and the Trust Administrator may consent to any amendment of a Designated Servicing Agreement to make any
other provisions with respect to matters or questions arising under such Designated Servicing Agreement or this Agreement that are
not materially inconsistent with the provisions of such Designated Servicing Agreement and this Agreement, provided that such action
shall not adversely affect in any material respect the interests of any Certificateholder or cause an Adverse REMIC Event. Any
amendment pursuant to this Section 12.01(f) shall not be deemed to adversely affect in any material respect the interests of any
Certificateholders if a letter is obtained from each Rating Agency stating that such amendment would not result in the downgrading or
withdrawal of the respective ratings then assigned to the Certificates.
(g) Neither the Master Servicer nor the Trust Administrator shall consent to any amendment of a Designated Servicing Agreement
which shall adversely affect in any material respect the interests of the Holders of a Class of Certificates without the consent of
the Holders of Certificates evidencing not less than 66-2/3% of the Voting Rights of such Class.
It shall not be necessary for the consent of Certificateholders under this Section to approve the particular form of
any proposed amendment of a Designated Servicing Agreement, 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.
Promptly after the execution of any amendment to a Designated Servicing Agreement pursuant to this
Section 12.01(f) or (g), the Trust Administrator shall furnish, upon written notice of such amendment, written notification of the
substance of such amendment to each Certificateholder, and the Rating Agencies.
(h) Notwithstanding any other provision of this Agreement, no amendment shall be made affecting the rights of the Holders of the
Class P Certificates to receive Assigned Prepayment Premiums, including any amendment to Section 3.23, without the consent of 100% of
the Holders of the Class P Certificates.
(i) Notwithstanding anything to the contrary in this Section 12.01, the Master Servicer, the Special Servicer, the Servicers,
the Seller, the Trust Administrator and the Trustee shall reasonably cooperate with the Depositor and its counsel to enter into such
amendments or modifications to the Agreement as may be necessary to comply with Regulation AB and any interpretation thereof by the
Commission.
(j) Without the consent of the Swap Counterparty, the Seller and the Depositor shall not enter into any amendment or
modification of the terms and provisions of this Agreement if such amendment or modification would materially adversely affect the
rights and interests of the Swap Counterparty hereunder.
SECTION 12.02. Recordation of Agreement; Counterparts.
(a) This Agreement (other than Schedule I) 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 Mortgaged Properties are situated, and in any other
appropriate public recording office or elsewhere. Such recordation, if any, shall be effected by the Depositor at its expense, but
only upon direction by the Trustee (acting at the direction of the holders of Certificates evidencing a majority of the aggregate
Class Principal Balance) accompanied by an Opinion of Counsel (at the Depositor's expense) to the effect that non-recordation
materially and adversely affects the interests of the Certificateholders.
(b) 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 12.03. Governing Law.
THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
HERETO AND THE CERTIFICATEHOLDERS SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.
SECTION 12.04. Intention of Parties.
(a) It is the express intent of the Depositor, the Seller, the Master Servicer, the Special Servicer, the Servicers, the Trust
Administrator and the Trustee that (i) the conveyance by DLJMC of the Mortgage Loans to the Depositor pursuant to the Assignment and
Assumption Agreement and (v) the conveyance by the Depositor to the Trustee as provided for in Section 2.01 of each of the Seller's
and Depositor's right, title and interest in and to the Mortgage Loans be, and be construed as, an absolute sale and assignment by
DLJMC to the Depositor and by the Depositor to the Trustee of the Mortgage Loans for the benefit of the Certificateholders. Further,
it is not intended that any conveyance be deemed to be a pledge of the Mortgage Loans by DLJMC to the Depositor or by the Depositor
to the Trustee to secure a debt or other obligation. However, in the event that the Mortgage Loans are held to be property of DLJMC
or the Depositor, as applicable, or if for any reason the Assignment and Assumption Agreement or this Agreement is held or deemed to
create a security interest in the Mortgage Loans, then it is intended that (i) this Agreement shall also be deemed to be a security
agreement within the meaning of Articles 8 and 9 of the New York Uniform Commercial Code and the Uniform Commercial Code of any other
applicable jurisdiction; (ii) the conveyances provided for in Section 2.01 shall be deemed to be a grant by the Seller and the
Depositor to the Trustee on behalf of the Certificateholders, to secure payment in full of the Secured Obligations (as defined
below), of a security interest in all of the Seller's and the Depositor's right (including the power to convey title thereto), title
and interest, whether now owned or hereafter acquired, in and to the Mortgage Loans, including the Mortgage Notes, the Mortgages, any
related insurance policies and all other documents in the related Mortgage Files, and all accounts, contract rights, general
intangibles, chattel paper, instruments, documents, money, deposit accounts, certificates of deposit, goods, letters of credit,
advices of credit and uncertificated securities consisting of, arising from or relating to (A) the Mortgage Loans, including with
respect to each Mortgage Loan, the Mortgage Note and related Mortgage, and all other documents in the related Trustee Mortgage Files,
and including any Qualified Substitute Mortgage Loans; (B) pool insurance policies, hazard insurance policies and any bankruptcy bond
relating to the foregoing, if applicable; (C) the Certificate Account; (D) the Collection Account; (E) all amounts payable after the
Cut-off Date to the holders of the Mortgage Loans in accordance with the terms thereof; (F) all income, payments, proceeds and
products of the conversion, voluntary or involuntary, of the foregoing into cash, instruments, securities or other property,
including without limitation all amounts from time to time held or invested in the Certificate Account, whether in the form of cash,
instruments, securities or other property; and (G) all cash and non-cash proceeds of any of the foregoing; (iii) the possession by
the Trustee or any other agent of the Trustee of Mortgage Notes or such other items of property as constitute instruments, money,
documents, advices of credit, letters of credit, goods, certificated securities or chattel paper shall be deemed to be a "possession
by the secured party," or possession by a purchaser or a person designated by him or her, for purposes of perfecting the security
interest pursuant to the Uniform Commercial Code (including, without limitation, Sections 9-313, 8-313 or 8-321 thereof); and
(iv) 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, securities
intermediaries, bailees or agents (as applicable) of the Trustee for the purpose of perfecting such security interest under
applicable law. "Secured Obligations" means (i) the rights of each Certificateholder to be paid any amount owed to it under this
Agreement and (ii) all other obligations of the Seller and the Depositor under this Agreement and the Assignment and Assumption
Agreement.
(b) The Seller and the Depositor, and, at the Depositor's direction, the Master Servicer or the Servicers, the Trustee and the
Trust Administrator, shall, to the extent consistent with this Agreement, take such reasonable actions as may be necessary to ensure
that, if this Agreement were deemed to create a security interest in the Mortgage Loans and the other property described above, such
security interest would be deemed to be a perfected security interest of first priority as applicable. The Depositor shall prepare
and file, at the related Servicer's expense, all filings necessary to maintain the effectiveness of any original filings necessary
under the Uniform Commercial Code as in effect in any jurisdiction to perfect the Trustee's security interest in or lien on the
Mortgage Loans, including without limitation (i) continuation statements, and (ii) such other statements as may be occasioned by any
transfer of any interest of the Master Servicer or any Servicer or the Depositor in any Mortgage Loan.
SECTION 12.05. Notices.
In addition to other notices provided under this Agreement, the Trust Administrator shall notify the Rating Agencies
and the Back-Up Servicer in writing: (a) of any substitution of any Mortgage Loan; (b) of any payment or draw on any insurance policy
applicable to the Mortgage Loans; (c) of the final payment of any amounts owing to a Class of Certificates; (d) any Event of Default
under this Agreement; and (e) in the event any Mortgage Loan is purchased in accordance with this Agreement.
All directions, demands and notices hereunder shall be in writing and shall be deemed to have been duly given when
received (i) in the case of the Depositor, Credit Suisse First Boston Mortgage Securities Corp., 00 Xxxxxxx Xxxxxx, 0xx Xxxxx, Xxx
Xxxx, Xxx Xxxx 00000, Attention: Xxxxx Xxxx (with a copy to DLJ Mortgage Acceptance Corp., 00 Xxxxxxx Xxxxxx, 0xx Xxxxx, Xxx Xxxx,
Xxx Xxxx 00000, Attention: Xxxxx Xxxx); (ii) in the case of the Trustee, the Corporate Trust Office, Attention: Xxxxxxx X. Xxxxxxxx,
or such other address as may hereafter be furnished to the Depositor in writing by the Trustee; (iii) in the case of DLJMC, 00
Xxxxxxx Xxxxxx, 0xx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: Xxxxx Xxxx (with a copy to DLJ Mortgage Acceptance Corp., 00 Xxxxxxx
Xxxxxx, 0xx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: Xxxxx Xxxx), or such other address as may be hereafter furnished to the
Depositor and the Trustee by DLJMC in writing; (iv) in the case of Xxxxx'x Investors Service, Inc., 00 Xxxxxx Xxxxxx, Xxx Xxxx, Xxx
Xxxx 00000, Attention: Xxxxxxxxx Xxxxxxxxx; (v) in the case of Standard & Poor's Ratings Services, a division of The XxXxxx-Xxxx
Companies, Inc., 00 Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000; (vi) in the case of SPS, 0000 Xxxxx Xxxx Xxxxxx, Xxxx Xxxx Xxxx, Xxxx
00000, Attention: Xxxxxx Xxxxx, with a copy to 0000 Xxxxx Xxxx Xxxxxx, Xxxx Xxxx Xxxx, Xxxx 00000, Attention: General Counsel;
(vii) in the case of Xxxxx Fargo, as Master Servicer, Corporate Trust Office, 0000 Xxx Xxxxxxxxx Xxxx, Xxxxxxxx, XX 00000,
Attention: CSFB ARMT 2006-1 or such other address as may be hereafter furnished to the Depositor or the Trustee in writing by Xxxxx
Fargo; (viii) in the case of the Trust Administrator, the Corporate Trust Office; (ix) in the case of the Special Servicer, 00000 XX
Xxxxxxxx Xxx, Xxxxxxxxx, XX 00000, Attention: Xxxxx Xxxxxxxx, and (x) in the case of Xxxxx Fargo, with respect to servicing issues,
Xxxxx Xxxxx Xxxx, X.X., 0 Xxxx Xxxxxx, Xxx Xxxxxx, Xxxx 00000-0000, Attention: Xxxx X. Xxxxx, MAC-X2401-042, Fax: (000) 000-0000, and
with respect to all other issues, Xxxxx Fargo Bank, N.A., 0000 Xxx Xxxxxxx Xxx, Xxxxxxxxx, Xxxxxxxx 00000,
Attention: Xxxx X. Xxxxxxxx, MAC-X3902-02X, Fax: (000) 000-0000, in each case with a copy to Xxxxx Xxxxx Xxxx, X.X., 0 Xxxx Xxxxxx,
Xxx Xxxxxx, Xxxx 00000-0000, Attention: General Counsel, MAC-X2401-06T, or such other address as may be hereafter furnished in
writing by Xxxxx Fargo.
SECTION 12.06. 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 12.07. Limitation on Rights of Certificateholders.
The death or incapacity of any Certificateholder shall not operate to terminate this Agreement or the Trust Fund,
nor entitle such Certificateholder's legal representative or heirs to claim an accounting or to take any action or commence any
proceeding in any court for a petition or winding up of the Trust Fund, or 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 provided herein) or in any manner otherwise control the
operation and management of the Trust Fund, or the obligations of the parties hereto, nor shall anything herein set forth or
contained in the terms 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 party 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 or by availing itself of any provisions 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 Trust Administrator a written notice of an Event of Default and of the continuance thereof, as
provided herein, and unless the Holders of Certificates evidencing not less than 25% of the Voting Rights evidenced by the
Certificates shall also have made written request upon the Trust Administrator to institute such action, suit or proceeding in its
own name as Trust Administrator hereunder and shall have offered to the Trust Administrator such reasonable indemnity as it may
require against the costs, expenses, and liabilities to be incurred therein or thereby, and the Trust Administrator, for 60 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 being understood and intended, and being expressly covenanted by each Certificateholder with every other
Certificateholder and the Trust Administrator, that no one or more Holders of Certificates shall have any right in any manner
whatever by virtue or by availing itself or themselves of any provisions of this Agreement to affect, disturb or prejudice the rights
of the Holders of any other of the 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 common benefit of all
Certificateholders. For the protection and enforcement of the provisions of this Section 12.07, each and every Certificateholder and
the Trust Administrator shall be entitled to such relief as can be given either at law or in equity.
SECTION 12.08. Certificates Nonassessable and Fully Paid.
It is the intention of the Depositor that Certificateholders shall not be personally liable for obligations of the
Trust Fund, that the interests in the Trust Fund represented by the Certificates shall be nonassessable for any reason whatsoever,
and that the Certificates, upon due authentication thereof by the Trust Administrator pursuant to this Agreement, are and shall be
deemed fully paid.
SECTION 12.09. Protection of Assets.
Except for transactions and activities entered into in connection with the securitization that is the subject of
this agreement, the trust created by this agreement is not authorized and has no power to:
(i) borrow money or issue debt;
(ii) merge with another entity, reorganize, liquidate or sell assets; or
(iii) engage in any business or activities.
Each party to this agreement agrees that it will not file an involuntary bankruptcy petition against the Trust Fund
or initiate any other form of insolvency proceeding until 366 days after the Certificates have been paid.
SECTION 12.10. Non-Solicitation.
From and after the date of this Agreement, each of the Depositor, the Seller, the Master Servicer, the Servicers,
the Trust Administrator and the Trustee agrees that it will not take any action or permit or cause any action to be taken by any of
its agents or affiliates, or by any independent contractors on any such party's behalf, to personally, by telephone, by mail, or
electronically by e-mail or through the Interest or otherwise, solicit the borrower or obligor under any Mortgage Loan to refinance
the Mortgage Loan, in whole or in part. Notwithstanding the foregoing, it is understood and agreed that promotions undertaken by the
Depositor, the Seller, the Master Servicer, any Servicer, the Trust Administrator or the Trustee or any affiliate of any such party
that originates mortgage loans in the normal course, which are directed to the general public at large, or segments thereof,
including, without limitation, mass mailings based on commercially acquired mailing lists or newspaper, radio and television
advertisements shall not constitute solicitation under this Section 12.10, provided, that no segment of the general public shall
consist primarily of the borrowers or obligors under the Mortgage Loans. None of the Depositor, the Seller, the Master Servicer, a
Servicer, the Trust Administrator or the Trustee shall permit the sale of the name of any Mortgagor or any list of names that consist
primarily of the Mortgages to any Person.
ARTICLE XIII
EXCHANGE ACT REPORTING
SECTION 13.01. Commission Reporting.
The Trust Administrator, each Servicer and the Master Servicer shall reasonably cooperate with the Depositor in
connection with the Trust's satisfying the reporting requirements under the Exchange Act. The Trust Administrator shall prepare on
behalf of the Depositor any Forms 8-K, 10-D and 10-K customary for similar securities as required by the Exchange Act and the rules
and regulations of the Commission thereunder, and the Depositor shall sign and the Trust Administrator shall file (via XXXXX) such
Forms on behalf of the Depositor.
SECTION 13.02. Form 10-D Reporting
Within 15 days after each Distribution Date (subject to permitted extensions under the Exchange Act), the Trust
Administrator shall prepare and file on behalf of the Trust Fund any Form 10-D required by the Exchange Act, in form and substance as
required by the Exchange Act. The Trust Administrator shall file each Form 10-D with a copy of the related Monthly Statement
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 determined and prepared by and at the direction of 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.
As set forth on Exhibit S hereto, within five calendar days after the related Distribution Date, (i) the parties set
forth thereon shall be required to provide to the Trust Administrator and the Depositor, to the extent known by a responsible party
thereof, in XXXXX-compatible form, or in such other form 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 W hereto (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-D Disclosure on Form 10-D. 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.
After preparing the Form 10-D, the Trust Administrator shall forward electronically a draft copy of the Form 10-D to
the Depositor for review. Within two business days of receipt, but in no event no later than the Business Day prior to the date
specified in the next sentence, the Depositor shall notify the Trust Administrator of any changes to or approval of such Form 10-D.
No later than two Business Days prior to the 15th calendar day after the related Distribution Date, an officer of the Master Servicer
shall sign the Form 10-D and return an electronic or fax copy of such signed Form 10-D (with an original executed hard copy to follow
by overnight mail) to the Trust Administrator. 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 13.05. 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 prepared and filed by the Trust Administrator. Each party to this Agreement acknowledges that the performance by the
Master Servicer and the Trust Administrator of its duties under this Section 13.02 related to the timely preparation 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 13.02. Neither the Trust Administrator nor the Master Servicer shall have any liability for any loss, expense, damage or
claim arising out of or with respect to any failure to properly prepare, timely 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 needed to prepare, arrange for execution or file such Form 10-D, not resulting from its own negligence, bad faith
or willful misconduct.
SECTION 13.03. Form 10-K Reporting
Within 90 days 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, the related Custodial
Agreements and the related Designated Servicing Agreement, (i) the Item 1123 Certification for each Servicer, each Additional
Servicer, the Master Servicer, Trust Administrator and any Servicing Function Participant engaged by such parties (each, a "Reporting
Servicer") as described under Section 13.06, (ii)(A) the Assessment of Compliance with servicing criteria for each Reporting
Servicer, and (B) if any Reporting Servicer's Assessment of Compliance identifies any material instance of noncompliance, disclosure
identifying such instance of noncompliance, or if any Reporting Servicer's Assessment of Compliance 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, (iii)(A) the
Accountant's Attestation for each Reporting Servicer, as described under Section 13.08, and (B) if any Accountant's Attestation
identifies any material instance of noncompliance, disclosure identifying such instance of noncompliance, or if any such Accountant's
Attestation 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 (iv) a Xxxxxxxx-Xxxxx Certification as described in Section 13.09. Any disclosure or information in
addition to (i) through (iv) above that is required to be included on Form 10-K ("Additional Form 10-K Disclosure") shall be
determined and prepared by and at the direction of 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 V hereto, no later than March 15 of each year that the Trust is subject to the Exchange Act
reporting requirements, commencing in 2007, (i) the parties set forth on Exhibit V shall be required to provide to the Trust
Administrator and the Depositor, to the extent known by a responsible officer, a notice in the form of Exhibit W hereto, along with,
in XXXXX-compatible form, or in such other form 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 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.
After preparing the Form 10-K, the Trust Administrator shall forward electronically a draft copy of the Form 10-K to
the Depositor for review. Within three (3) business days of receipt, but in no event later than March 25, the Depositor shall notify
the Trust Administrator of any changes to or approval of such Form 10-K. No later than the close of business on the 4th Business Day
prior to the 10-K Filing Deadline, the Depositor shall sign the Form 10-K and return an electronic or fax copy of such signed Form
10-K (with an original executed hard copy to follow by overnight mail) to the Trust Administrator. 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
13.05. Promptly (but no later than 1 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 prepared and filed by the Trust Administrator. The parties to this
Agreement acknowledge that the performance by the Master Servicer and the Trust Administrator of its duties under this Section 13.03
related to the timely preparation and filing of Form 10-K is contingent upon such parties (and the Custodians, Designated Servicers
and any Additional Servicer or Servicing Function Participant) strictly observing all applicable deadlines in the performance of
their duties under Article XIII. Neither the Trust Administrator nor the Master Servicer shall have any liability for any loss,
expense, damage, claim arising out of or with respect to any failure to properly prepare 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 any other party hereto needed to prepare, arrange for execution or file such Form 10-K, not resulting from its own negligence,
bad faith or willful misconduct.
SECTION 13.04. Form 8-K Reporting
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 any 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 ("Form 8-K Disclosure Information") shall be determined and prepared by and at the direction of 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
Form 8-K Disclosure Information or any Form 8-K, except as set forth in the next paragraph.
As set forth on Exhibit U hereto, for so long as the Trust is subject to the Exchange Act reporting requirements, no
later than the end of business on the 2nd Business Day after the occurrence of a Reportable Event (i) the parties set forth on
Exhibit U shall be required to provide to the Trust Administrator and the Depositor, to the extent known by a responsible officer
thereof, a notice in the form of Exhibit W attached hereto, along with, in XXXXX-compatible form, or in such other form as otherwise
agreed upon by the Trust Administrator 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. 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 paragraph.
After preparing the Form 8-K, the Trust Administrator shall forward electronically a draft copy of the Form 8-K to
the Depositor for review. No later than the Business Day prior to the date specified in the next sentence, the Depositor and the
Master Servicer shall notify the Trust Administrator of any changes to or approval of such Form 8-K. No later than noon New York
City time on the 4th Business Day after the Reportable Event, an officer of the Master Servicer shall sign the Form 8-K and return an
electronic or fax copy of such signed Form 8-K (with an original executed hard copy to follow by overnight mail) to the Trust
Administrator. 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 13.05. Promptly (but no later than 1 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 prepared and filed by the
Trust Administrator. The parties to this Agreement acknowledge that the performance by the Trust Administrator and the Master
Servicer of its duties under this Section 13.04 related to the timely preparation 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 13.04. 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 and/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 any other party hereto needed to prepare, arrange
for execution or file such Form 8-K, not resulting from its own negligence, bad faith or willful misconduct.
SECTION 13.05. Delisting; Amendment; Late Filing of Reports
On or before 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, 10-D or 10-K required to be filed by this Agreement because required disclosure information was either not delivered
to it or delivered to it after the delivery deadlines set forth in this Agreement or for any other reason, the Trust Administrator
shall promptly notify the Depositor. In the case of Form 10-D and 10-K, the parties to this Agreement shall cooperate to prepare and
file a Form 12b-25 and a 10-DA and 10-KA 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, 10-D or 10-K
needs to be amended to include additional disclosure, the Trust Administrator shall notify the Depositor and such parties will
cooperate to prepare any necessary Form 8-KA, 10-DA or 10-KA. Any Form 15, Form 12b-25 or any amendment to Form 8-K, 10-D or 10-K
shall be signed by an officer of the Master Servicer. The parties to this Agreement acknowledge that the performance by the Trust
Administrator and the Master Servicer of their duties under this Section 13.05 related to the timely preparation and filing of Form
15, a Form 12b-25 or any amendment to Form 8-K, 10-D or 10-K is contingent upon each such party performing its duties under this
Section. Neither the Trust Administrator nor the Master Servicer shall have any liability for any loss, expense, damage or claim
arising out of or with respect to any failure to properly prepare and/or timely file any such Form 15, Form 12b-25 or any amendments
to Forms 8-K, 10-D or 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 any other party hereto needed to prepare, arrange for execution or file such Form 15, Form 12b-25
or any amendments to Forms 8-K, 10-D or 10-K, not resulting from its own negligence, bad faith or willful misconduct.
SECTION 13.06. Annual Statements of Compliance
The Master Servicer, the Trust Administrator and each Servicer shall deliver or otherwise make available (and the
Master Servicer, the Trust Administrator and each Servicer shall cause any Additional Servicer engaged by it to deliver or otherwise
make available) to the Depositor, the Trustee and the Trust Administrator on or before March 15 of each year, commencing in March
2007, an Officer's Certificate (an "Item 1123 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 an Additional Servicer, 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 an Additional Servicer, 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. Promptly after receipt of each such Item 1123 Certificate, the Depositor shall review such Item
1123 Certificate and, if applicable, consult with each such party, as applicable, as to the nature of any failures by such party, in
the fulfillment of any of such party's obligations hereunder or, in the case of an Additional Servicer, under such other applicable
agreement.
The Master Servicer shall enforce any obligation of any Designated Servicer, to the extent set forth in the related
Designated Servicing Agreement, to deliver to the Master Servicer an Item 1123 Certificate as may be required pursuant to the related
Designated Servicing Agreement. The Master Servicer shall include such Item 1123 Certificate with its own Item 1123 Certificate to
be submitted to the Trust Administrator, the Depositor and the Trustee pursuant to this Section.
SECTION 13.07. Annual Assessments of Compliance.
By March 15 of each year, commencing in March 2007, the Master Servicer, the Trust Administrator and each Servicer,
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 or otherwise make available, each at its own expense, to the Trust Administrator, the Trustee
and the Depositor, a report on an assessment of compliance with the Relevant Servicing Criteria (an "Assessment of Compliance") that
contains (A) a statement by such party of its responsibility for assessing compliance with the Relevant Servicing Criteria for each
party as set forth on Exhibit R, (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 13.03, 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 Accountant's Attestation on such party's Assessment of Compliance
with the Relevant Servicing Criteria as of and for such period.
No later than the end of each fiscal year for the Trust for which a 10-K is required to be filed, each Servicer and
the Master Servicer shall each forward to the Trust Administrator the name of each Servicing Function Participant engaged by it and
what Relevant Servicing Criteria will be addressed in the Assessment of Compliance prepared by such Servicing Function Participant.
When the Master Servicer and each Servicer (or any Servicing Function Participant engaged by them) submit their Assessments of
Compliance to the Trust Administrator, such parties will also at such time include the Assessments of Compliance (and Accountant's
Attestation) of each Servicing Function Participant engaged by it.
Promptly after receipt of each Assessment of Compliance, the Depositor shall review each such report and, if
applicable, consult with the Master Servicer, the Trust Administrator, each Servicer 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.
None of such parties will be required to deliver any such assessments until April 15 in any given year so long as it has received
written confirmation from the Depositor that a Form 10-K is not required to be filed in respect of the Trust for the preceding
calendar year.
The Master Servicer shall enforce any obligation of the Designated Servicers and the Custodians, to the extent set
forth in the related Designated Servicing Agreement or Custodial Agreement, as applicable, to deliver to the Master Servicer an
Assessment of Compliance within the time frame set forth in, and in such form and substance as may be required pursuant to, the
related Designated Servicing Agreement or Custodial Agreement, as applicable. The Master Servicer shall include such Assessment of
Compliance with its own Assessment of Compliance to be submitted to the Trust Administrator and the Trustee pursuant to this Section.
SECTION 13.08. Accountant's Attestation
By March 15 of each year, commencing in 2007, the Master Servicer, the Trust Administrator and each Servicer, 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 Master Servicer, the Trust
Administrator or a Servicer 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 a report (the "Accountant's Attestation") 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 PCAOB, 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 such Accountant's Attestations from the Master Servicer, each Servicer, each Designated
Servicer, each Custodian, the Trust Administrator or any Servicing Function Participant engaged by such parties, (i) the Depositor
shall review the report and, if applicable, consult with such parties as to the nature of any defaults by such parties, in the
fulfillment of any of each such party's obligations hereunder or under any other applicable agreement, and (ii) the Trust
Administrator shall confirm that each Assessment of Compliance is coupled with an Accountant's Attestation meeting the requirements
of this Section and notify the Depositor of any exceptions. None of such parties shall be required to deliver any such assessments
until April 15 in any given year so long as it has received written confirmation from the Depositor that a Form 10-K is not required
to be filed in respect of the Trust for the preceding calendar year.
The Master Servicer shall enforce any obligation of the Designated Servicers and the Custodians, to the extent set
forth in the related Designated Servicing Agreement and the related Custodial Agreement, as applicable, to deliver to the Master
Servicer an attestation as may be required pursuant to, the related Designated Servicing Agreement or Custodial Agreement as
applicable. The Master Servicer shall include each such attestation with its own Accountant's Attestation to be submitted to the
Trust Administrator pursuant to this Section.
SECTION 13.09. Xxxxxxxx-Xxxxx Certification
Each Form 10-K shall include a certification (the "Xxxxxxxx-Xxxxx Certification") required to be included therewith
pursuant to the Xxxxxxxx-Xxxxx Act. Each Servicer, the Master Servicer and the Trust Administrator shall provide, and each Servicer,
the Master Servicer and the Trust Administrator 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 15 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 V, 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 Depositor shall serve as the Certifying Person on behalf of the Trust. In
the event the Master Servicer, the Trust Administrator or any Servicing Function Participant engaged by parties is terminated or
resigns pursuant to the terms of this Agreement, or any applicable Subservicing Agreement, as the case may be, such party shall
provide a Back-Up Certification to the Certifying Person pursuant to this Section 13.09 with respect to the period of time it was
subject to this Agreement or any applicable Subservicing Agreement, as the case may be.
The Master Servicer shall enforce any obligation of the Designated Servicers, to the extent set forth in the related
Designated Servicing Agreement, to deliver to the Master Servicer a certification similar to the Back-Up Certification as may be
required pursuant to the related Designated Servicing Agreement.
SECTION 13.10. Indemnification
Each party required to deliver an Assessment of Compliance and an Accountant's Attestation and/or an Item 1123
Certification under Article XIII (each, a "Responsible Party) shall indemnify and hold harmless the Trust Administrator, the Master
Servicer and the Depositor and each of their directors, officers, employees, agents, and affiliates from and against any and all
claims, losses, damages, penalties, fines, forfeitures, reasonable legal fees and related costs, judgments and other costs and
expenses arising out of or based upon (a) any breach by such Responsible Party of any if its obligations under this Article XIII
including particularly its obligation to provide any Assessment of Compliance and an Accountant's Attestation and/or an Item 1123
Certification required under this Article XIII, (b) any misstatement or omission in any information, data or materials provided by
such Responsible Party, or (c) the negligence, bad faith or willful misconduct of such Responsible Party in connection with the
performance of any if its obligations under this Article XIII. If the indemnification provided for herein is unavailable or
insufficient to hold harmless the Master Servicer, the Trust Administrator or the Depositor, then each Responsible Party agrees that
it shall contribute to the amount paid or payable by Trust Administrator, the Master Servicer or the Depositor, as applicable, as a
result of any claims, losses, damages or liabilities incurred by the Master Servicer, the Trust Administrator or the Depositor, as
applicable, in such proportion as is appropriate to reflect the relative fault of the Master Servicer, the Trust Administrator or the
Depositor, as applicable, on the one hand and such Responsible Party, on the other. This indemnification shall survive the
termination of this Agreement or the termination of any party to this Agreement.
ARTICLE XIV
SPS AND THE MASTER SERVICER
SECTION 14.01. Reports and Notices.
(a) SPS shall provide the Master Servicer the following notices and reports in a timely manner and such notices and reports
shall be prepared using the same methodology and calculations used in its standard servicing reports to the Master Servicer. SPS
shall send all such notices and reports to the Master Servicer in a format used for its standard servicing reports. SPS agrees to
provide the Master Servicer with read-only access to those portions of its default management and servicing platform that relate to
the SPS Mortgage Loans.
(i) All SPS Mortgage Loans - On each Data Remittance Date, commencing in March 2006, SPS shall provide the Master Servicer a
report of each SPS Mortgage Loan indicating the information contained in Exhibit P for the period relating to the related
Distribution Date.
(ii) Liquidated Mortgage Loans - On each Data Remittance Date SPS shall provide the Master Servicer with a report listing each
SPS Mortgage Loan that has liquidated or been satisfied in full indicating the information, or information substantially
similar to the information, contained in Exhibit P together with all supporting documentation for the prior calendar month.
(iii) Mortgage Guaranty Insurance Policy Claims - Where applicable, SPS shall provide the Master Servicer with copies of all
claims filed under any Mortgage Guaranty Insurance Policy and the actual amount paid, together with the explanation of
benefits ("EOB") for each claim filed under any Mortgage Guaranty Insurance Policy in respect of a SPS Mortgage Loan. SPS
shall remit the related Insurance Proceeds within five (5) Business Days after their receipt, submit to the Master Servicer
a foreclosure settlement statement substantially in the form attached hereto as Exhibit Q and agrees not to deduct any
related expenses prior to the Master Servicer's approval of the related foreclosure settlement statement.
(iv) Loss and Delinquency Test - SPS shall provide the Master Servicer with all information required for calculating the Loss and
Delinquency Test, including but not limited to:
(A) Loan level and aggregate Stated Principal Balance of all SPS Mortgage Loans 61-90 days delinquent including any loan(s)
delinquent on a bankruptcy plan;
(B) Loan level and aggregate Stated Principal Balance of all SPS Mortgage Loans 91 days and greater (that are not in
foreclosure) including any loan(s) delinquent on a bankruptcy plan;
(C) Loan level and aggregate Stated Principal Balance of all SPS Mortgage Loans that are active foreclosures;
(D) Loan level and aggregate Stated Principal Balance of all SPS Mortgage Loans that are active REOs; and
(E) Due dates for all SPS Mortgage Loans reported under the categories listed above in (A) through (D).
(b) SPS shall make its servicing personnel available during normal business hours to respond, either orally or in writing by
facsimile transmission, express mail, or electronic mail, to reasonable inquiries transmitted by the Master Servicer with respect to
any SPS Mortgage Loan, provided that SPS shall only be required to provide information that is readily accessible and available to
its servicing personnel.
SECTION 14.02. Master Servicer's Oversight With Respect to the SPS Mortgage Loans.
(a) The Master Servicer shall be permitted to provide SPS with advice, reports and recommendations regarding SPS's collection
efforts and the management of specific SPS Mortgage Loans, which advice may be made in writing, in the form of electronic mail or
verbally. Such advice shall be based on an evaluation of the information provided pursuant to Section 14.01(a). The advice may
include comparable analysis of the performance of the SPS Mortgage Loans with similar mortgage loans serviced by other mortgage loan
servicers. Such advice may also take the form of benchmark comparisons that identify and interpret SPS's strengths and weaknesses
relative to similar, unidentified servicers in the industry.
(b) Each party to the Agreement acknowledges that the Master Servicer's advice is made in the form of recommendations, and that
the Master Servicer does not have the right to direct SPS in performing its duties under this Agreement. SPS may, after review and
analysis of any recommendation of the Master Servicer accept or reject such advice, in SPS's sole discretion, subject to the duties
and obligations of SPS set forth in this Agreement.
SECTION 14.03. Termination.
The rights and obligations of the Master Servicer under Sections 14.01 and 14.02 of this Agreement shall terminate
upon the earlier of (i) the appointment of a successor Servicer to SPS hereunder for all the SPS Mortgage Loans or (ii) the receipt
by SPS of a rating of "above average" (or its equivalent) or better as a servicer of subprime mortgage loans by each Rating Agency
that maintains a servicer rating system and a Rating on the Certificates.
SECTION 14.04. Liability and Indemnification.
Neither the Master Servicer, nor any of its respective directors, officers, employees, or agents shall be under any
liability for any action taken or for refraining from the taking of any action in good faith pursuant to Sections 14.01 and 14.02 of
this Agreement or for errors in judgment; provided, however, that this provision shall not protect the Master Servicer or any such
other Person 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 disregard of obligations and duties hereunder. The Master Servicer and any director,
officer, employee, or agent thereof shall be entitled to rely in good faith on any document of any kind prima facie properly executed
and submitted by any Person respecting any matters arising hereunder.
SECTION 14.05.
Confidentiality.
The Master Servicer agrees that all material, nonpublic information supplied to it by or on behalf of SPS relating
to the SPS Serviced Mortgage Loans or details of SPS's operations or SPS's proprietary systems shall be treated confidentially except
as otherwise provided by the terms of this Agreement or as required by law; it being understood that the provision of any such
information by the Master Servicer to any party shall not cause such information to be considered public for purposes of this
Section 14.05. The Master Servicer shall indemnify SPS against any loss, liability, claims, charges, damages, fines, penalties,
judgments, actions, suits, costs and such other expenses incurred by SPS as a result of a breach by the Master Servicer of its
obligations under this Section 14.05.
IN WITNESS WHEREOF, the Depositor, the Seller, the Trust Administrator, the Master Servicer, the Back-Up Servicer,
the Trustee, the Special Servicer and the Servicers have caused their names to be signed hereto by their respective officers
thereunto duly authorized all as of the date first written above.
CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.,
as Depositor
By:______________________________________
Name:
Title:
DLJ MORTGAGE CAPITAL, INC.,
as Seller
By:______________________________________
Name:
Title:
XXXXX FARGO BANK, N.A.,
as Trust Administrator, as Master Servicer, as Back-Up Servicer and as
Supplemental Interest Trust Trustee
By:______________________________________
Name:
Title:
U.S. BANK NATIONAL ASSOCIATION,
as Trustee
By:______________________________________
Name:
Title:
XXXXX FARGO BANK, N.A.,
as a Servicer
By:______________________________________
Name:
Title:
SELECT PORTFOLIO SERVICING, INC.,
as a Servicer and Special Servicer
By:______________________________________
Name:
Title:
STATE OF NEW YORK )
: ss.:
COUNTY OF NEW YORK )
On this __ day of February, 2006, before me, personally appeared _____________, known to me to be a Vice President of Credit Suisse
First Boston Mortgage Securities Corp., one of the corporations that executed the within instrument, and also known to me to be the
person who executed it on behalf of said corporation, and acknowledged to me that such corporation 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 NEW YORK )
: ss.:
COUNTY OF NEW YORK )
On the __ day of February, 2006, before me, personally appeared ____________, known to me to be a Vice President of DLJ Mortgage
Capital, Inc., one of the corporations that executed the within instrument and also known to me to be the person who executed it on
behalf of said corporation, and acknowledged to me that such corporation 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 February, 2006 before me, a Notary Public in and for said State, personally appeared ____________________, known
to me to be a __________________ of SPS, the Utah corporation that executed the within instrument and also known to me to be the
person who executed it on behalf of said corporation, and acknowledged to me that such limited partnership 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 February, 2006 before me, a Notary Public in and for said State, personally appeared ____________________, known
to me to be a __________________ of Xxxxx Fargo Bank, N.A., the national banking association that executed the within instrument and
also known to me to be the person who executed it on behalf of said national banking association, and acknowledged to me that such
banking corporation 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 February, 2006 before me, a Notary Public in and for said State, personally appeared ____________________, known
to me to be a __________________ of Xxxxx Fargo Bank, N.A., the national banking association that executed the within instrument and
also known to me to be the person who executed it on behalf of said national banking association, and acknowledged to me that such
banking corporation 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 NEW YORK )
: ss.:
COUNTY OF NEW YORK )
On the _____ day of February, 2006 before me, a Notary Public in and for said State, personally appeared ____________________, known
to me to be a __________________ of U.S. Bank National Association, the national banking association that executed the within
instrument and also known to me to be the person who executed it on behalf of said national banking association, and acknowledged to
me that such national banking association 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
FORM OF CLASS A CERTIFICATE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO ISSUER 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 REPRESENTS OWNERSHIP OF 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").
Certificate No. : 1
Cut-off Date : February 1, 2006
First Distribution Date : March 27, 2006
Initial Certificate Balance
of this Certificate
("Denomination") :
Initial Certificate Balances
of all Certificates
of this Class :
CUSIP :
Pass-Through Rate : Variable
Maturity Date : March 2036
CREDIT SUISSE FIRST BOSTON MORTGAGE ACCEPTANCE CORP.
Credit Suisse First Boston Mortgage Securities Corp.,
Adjustable Rate Mortgage-Backed Pass-Through Certificates, Series 2006-1
Class [__]-A-[__]
evidencing a percentage interest in the distributions allocable to the
Certificates of the above-referenced Class with respect to a Trust Fund
consisting primarily of a pool of adjustable rate conventional mortgage loans
(the "Mortgage Loans") secured by first liens on one- to four-family
residential properties.
Credit Suisse First Boston Mortgage Securities Corp., as Depositor
Principal in respect of this Certificate is distributable monthly as set forth
herein. Accordingly, the Certificate Balance at any time may be less than the Certificate
Balance as set forth herein. This Certificate does not evidence an obligation of, or an
interest in, and is not guaranteed by the Depositor, the Seller, the Master Servicer, the
Servicers, the Special Servicer, the Trust Administrator or the Trustee referred to below
or any of their respective affiliates. Neither this Certificate nor the Mortgage Loans are
guaranteed or insured by any governmental agency or instrumentality.
This certifies that CEDE & CO., is the registered owner of the Percentage Interest
evidenced by this Certificate (obtained by dividing the denomination of this Certificate by
the aggregate of the denominations of all Certificates of the Class to which this
Certificate belongs) in certain monthly distributions with respect to a Trust Fund
consisting primarily of the Mortgage Loans deposited by Credit Suisse First Boston Mortgage
Securities Corp. (the "Depositor"). The Trust Fund was created pursuant to a Pooling and
Servicing Agreement dated as of the Cut-off Date specified above (the "Agreement") among
Credit Suisse First Boston Mortgage Securities Corp., as depositor, DLJ Mortgage Capital,
Inc., as seller, Xxxxx Fargo Bank, N.A., as trust administrator, master servicer, servicer
and back-up servicer, U.S. Bank National Association, as trustee, and Select Portfolio
Servicing, Inc., as a servicer and as special servicer. 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.
Reference is hereby made to the further provisions of this Certificate set forth on
the reverse hereof, which further provisions shall for all purposes have the same effect as
if set forth at this place.
This Certificate shall not be entitled to any benefit under the Agreement or be valid
for any purpose unless manually countersigned by an authorized signatory of the Trust
Administrator.
IN WITNESS WHEREOF, the Trust Administrator has caused this Certificate to be duly
executed.
Dated: ___________________
XXXXX FARGO BANK, N.A.
as Trust Administrator
By_________________________________
Countersigned:
By ___________________________
Authorized Signatory of
XXXXX FARGO BANK, N.A.
as Trust Administrator
EXHIBIT B
FORM OF CLASS [__]-M CERTIFICATE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO ISSUER 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 REPRESENTS OWNERSHIP OF 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 SUBORDINATED IN RIGHT OF PAYMENT TO CERTAIN CERTIFICATES AS DESCRIBED
IN THE AGREEMENT REFERRED TO HEREIN.
Certificate No. : 1
Cut-off Date : February 1, 2006
First Distribution Date : March 27, 2006
Initial Certificate Balance
of this Certificate
("Denomination") :
Initial Certificate Balances
of all Certificates
of this Class :
CUSIP :
Pass-Through Rate : Variable
Maturity Date : March 2036
CREDIT SUISSE FIRST BOSTON MORTGAGE ACCEPTANCE CORP.
Adjustable Rate Mortgage Trust 2006-1,
Adjustable Rate Mortgage-Backed Pass-Through Certificates, Series 2006-1
Class [__]-M-[__]
evidencing a percentage interest in the distributions allocable to the
Certificates of the above-referenced Class with respect to a Trust Fund
consisting primarily of a pool of adjustable rate conventional mortgage loans
(the "Mortgage Loans") secured by first liens on one- to four-family
residential properties.
Credit Suisse First Boston Mortgage Securities Corp., as Depositor
Principal in respect of this Certificate is distributable monthly as set forth
herein. Accordingly, the Certificate Balance at any time may be less than the Certificate
Balance as set forth herein. This Certificate does not evidence an obligation of, or an
interest in, and is not guaranteed by the Depositor, the Seller, the Master Servicer, the
Servicers, the Special Servicer, the Trust Administrator or the Trustee referred to below
or any of their respective affiliates. Neither this Certificate nor the Mortgage Loans are
guaranteed or insured by any governmental agency or instrumentality.
This certifies that CEDE & CO., is the registered owner of the Percentage Interest
evidenced by this Certificate (obtained by dividing the denomination of this Certificate by
the aggregate of the denominations of all Certificates of the Class to which this
Certificate belongs) in certain monthly distributions with respect to a Trust Fund
consisting primarily of the Mortgage Loans deposited by Credit Suisse First Boston Mortgage
Securities Corp. (the "Depositor"). The Trust Fund was created pursuant to a Pooling and
Servicing Agreement dated as of the Cut-off Date specified above (the "Agreement") among
Credit Suisse First Boston Mortgage Securities Corp., as depositor, DLJ Mortgage Capital,
Inc., as seller, Xxxxx Fargo Bank, N.A., as trust administrator, master servicer, servicer
and back-up servicer, U.S. Bank National Association, as trustee, and Select Portfolio
Servicing, Inc., as a servicer and as special servicer. 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.
Reference is hereby made to the further provisions of this Certificate set forth on
the reverse hereof, which further provisions shall for all purposes have the same effect as
if set forth at this place.
This Certificate shall not be entitled to any benefit under the Agreement or be valid
for any purpose unless manually countersigned by an authorized signatory of the Trust
Administrator.
IN WITNESS WHEREOF, the Trust Administrator has caused this Certificate to be duly
executed.
Dated: __________________
XXXXX FARGO BANK, N.A.
as Trust Administrator
By ____________________________
Countersigned:
By ___________________________
Authorized Signatory of
XXXXX FARGO BANK, N.A.
as Trust Administrator
EXHIBIT C
FORM OF CLASS [__]-B CERTIFICATE
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS OWNERSHIP OF 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 SUBORDINATED IN RIGHT OF PAYMENT TO CERTAIN CERTIFICATES AS DESCRIBED
IN THE AGREEMENT REFERRED TO HEREIN.
[THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
("THE ACT"). ANY RESALE OR TRANSFER OF THIS CERTIFICATE WITHOUT REGISTRATION THEREOF UNDER
THE ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPTED FROM THE REGISTRATION REQUIREMENTS OF
THE ACT AND IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.]
PURSUANT TO SECTION 6.02(f) OF THE AGREEMENT, AN ERISA-RESTRICTED CERTIFICATE OR ANY
INTEREST HEREIN MAY NOT BE TRANSFERRED UNLESS THE TRANSFEREE DELIVERS TO THE TRUSTEE (I) A
REPRESENTATION LETTER TO THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN OR
ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA") OR SECTION 4975 OF THE CODE OR A PERSON USING THE ASSETS OF SUCH A PLAN OR
ARRANGEMENT OR (II) IF THE PURCHASER IS AN INSURANCE COMPANY AND THE CERTIFICATE HAS BEEN
THE SUBJECT OF AN ERISA-QUALIFYING UNDERWRITING, A REPRESENTATION IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN OR (III) AN OPINION OF COUNSEL IN ACCORDANCE
WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN. IN THE EVENT THE REPRESENTATIONS
REFERRED TO IN THE PRECEDING SENTENCE ARE NOT FURNISHED, SUCH REPRESENTATION SHALL BE
DEEMED TO HAVE BEEN MADE TO THE TRUSTEE BY THE TRANSFEREE'S ACCEPTANCE OF THIS CERTIFICATE,
OR BY ANY BENEFICIAL OWNER WHO PURCHASES AN INTEREST IN THIS CERTIFICATE IN BOOK-ENTRY
FORM. IN THE EVENT THAT A REPRESENTATION IS VIOLATED, OR ANY ATTEMPT TO TRANSFER THIS
CERTIFICATE TO A PLAN OR ARRANGEMENT OR PERSON USING A PLAN'S OR ARRANGEMENT'S ASSETS IS
ATTEMPTED WITHOUT THE DELIVERY TO THE TRUSTEE OF THE OPINION OF COUNSEL DESCRIBED ABOVE,
THE ATTEMPTED TRANSFER OR ACQUISITION OF THIS CERTIFICATE SHALL BE VOID AND OF NO EFFECT.
Certificate No. : 1
Cut-off Date : February 1, 2006
First Distribution Date : March 27, 2006
Initial Certificate Balance
of this Certificate
("Denomination") :
Initial Certificate Balances
of all Certificates
of this Class :
Percentage Interest : 100%
CUSIP :
Pass-Through Rate : Variable
Maturity Date : March 2036
CREDIT SUISSE FIRST BOSTON MORTGAGE ACCEPTANCE CORP.
Adjustable Rate Mortgage Trust 2006-1,
Adjustable Rate Mortgage-Backed Pass-Through Certificates, Series 2006-1
Class [__]-B-[__]
evidencing a percentage interest in the distributions allocable to the
Certificates of the above-referenced Class with respect to a Trust Fund
consisting primarily of a pool of adjustable rate conventional mortgage loans
(the "Mortgage Loans") secured by first liens on one- to four-family
residential properties.
Credit Suisse First Boston Mortgage Securities Corp., as Depositor
This Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Seller, the Master Servicer, the Servicers, the Special
Servicer, the Trustee or the Trust Administrator referred to below or any of their
respective affiliates. Neither this Certificate nor the Mortgage Loans are guaranteed or
insured by any governmental agency or instrumentality.
This certifies that [_____________________________________________], is the
registered owner of the Percentage Interest evidenced by this Certificate (obtained by
dividing the denomination of this Certificate by the aggregate of the denominations of all
Certificates of the Class to which this Certificate belongs) in certain monthly
distributions with respect to a Trust Fund consisting primarily of the Mortgage Loans
deposited by Credit Suisse First Boston Mortgage Securities Corp. (the "Depositor"). The
Trust Fund was created pursuant to a Pooling and Servicing Agreement dated as of the
Cut-off Date specified above (the "Agreement") among Credit Suisse First Boston Mortgage
Securities Corp., as depositor, DLJ Mortgage Capital, Inc., as seller, Xxxxx Fargo Bank,
N.A., as trust administrator, master servicer, servicer and back-up servicer, U.S. Bank
National Association, as trustee, and Select Portfolio Servicing, Inc., as a servicer and
as special servicer. 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.
[For Privately Offered Certs only] [No transfer of this Certificate shall be made
unless such transfer is made pursuant to an effective registration statement under the
Securities Act and any applicable state securities laws or is exempt from the registration
requirements under said Act and such laws. In the event that a transfer is to be made in
reliance upon an exemption from the Securities Act and such laws, in order to assure
compliance with the Securities Act and such laws, the Certificateholder desiring to effect
such transfer and such Certificateholder's prospective transferee shall each certify to the
Trust Administrator in writing the facts surrounding the transfer and (i) deliver a letter
in substantially the form of either Exhibit L and either (A) Exhibit M 1, provided that all
of the Certificates of the Class shall be transferred to one investor or the Depositor
otherwise consents to such transfer, or (B) Exhibit M-2 or (ii) there shall be delivered to
the Trust Administrator at the expense of the transferor an Opinion of Counsel that such
transfer may be made pursuant to an exemption from the Securities Act. The Holder hereof
desiring to affect such transfer shall, and does hereby agree to, indemnify the Trustee,
the Trust Administrator and the Depositor 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.]
Pursuant to Section 6.02(f) of the Agreement, no transfer of an ERISA-Restricted
Certificate shall be made unless the Trustee shall have received either (i) a
representation letter from the transferee of such ERISA-Restricted Certificate, acceptable
to and in form and substance satisfactory to the Trust Administrator, to the effect that
such transferee is not an employee benefit plan or arrangement subject to Section 406 of
ERISA or Section 4975 of the Code, or a person using the assets of any such plan or
arrangement which representation letter shall not be an expense of the Trustee, the Trust
Administrator or the Trust Fund, (ii) if the purchaser is an insurance company and the
ERISA-Restricted Certificate has been the subject of an ERISA-Qualifying Underwriting, a
representation that the purchaser is an insurance company which is purchasing such
Certificates with funds contained in an "insurance company general account" (as such term
is defined in Section V(e) of Prohibited Transaction Class Exemption 95-60 ("PTCE 95-60"))
and that the purchase and holding of such Certificate are covered under Sections I and III
of PTCE 95-60 or (iii) in the case of any such ERISA-Restricted Certificate presented for
registration in the name of an employee benefit plan subject to ERISA or Section 4975 of
the Code (or comparable provisions of any subsequent enactments), or a person using such
plan's or arrangement's assets, an Opinion of Counsel satisfactory to the Trust
Administrator to the effect that the purchase or holding of such Certificate will not
result in prohibited transactions under Section 406 of ERISA and/or Section 4975 of the
Code and will not subject the Depositor, the Trustee, the Trust Administrator, the Master
Servicer or any other Servicer to any obligation in addition to those undertaken in this
Agreement, which Opinion of Counsel shall not be an expense of such parties or the Trust
Fund. In the event the representations referred to in the preceding sentence are not
furnished, such representation shall be deemed to have been made to the trustee by the
transferee's acceptance of an ERISA-Restricted Certificate or by any beneficial owner who
purchases an interest in this certificate in book-entry form. In the event that a
representation is violated, or any attempt to transfer an ERISA-Restricted Certificate to a
plan or arrangement or person using a plan's or arrangement's assets is attempted without
the delivery to the Trustee of the Opinion of Counsel described above, the attempted
transfer or acquisition of this certificate shall be void and of no effect.
Reference is hereby made to the further provisions of this Certificate set forth on
the reverse hereof, which further provisions shall for all purposes have the same effect as
if set forth at this place.
This Certificate shall not be entitled to any benefit under the Agreement or be valid
for any purpose unless manually countersigned by an authorized signatory of the Trust
Administrator.
IN WITNESS WHEREOF, the Trust Administrator has caused this Certificate to be duly
executed.
Dated: __________________
XXXXX FARGO BANK, N.A.
as Trust Administrator
By_____________________________
Countersigned:
By ___________________________
Authorized Signatory of
XXXXX FARGO BANK, N.A.
as Trust Administrator
EXHIBIT D-1
FORM OF CLASS AR CERTIFICATE
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS OWNERSHIP OF
"RESIDUAL INTERESTS" ISSUED BY "REAL ESTATE MORTGAGE INVESTMENT CONDUITS," AS THOSE TERMS
ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
AS AMENDED (THE "CODE").
NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE PROPOSED
TRANSFEREE DELIVERS TO THE TRUST ADMINISTRATOR A TRANSFER AFFIDAVIT IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.
NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE TRANSFEREE
DELIVERS TO THE TRUSTEE A REPRESENTATION LETTER TO THE EFFECT THAT SUCH TRANSFEREE IS NOT
AN EMPLOYEE BENEFIT PLAN OR ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED ("ERISA") OR ARRANGEMENT, OR SECTION 4975 OF THE CODE OR A PERSON
USING THE ASSETS OF SUCH A PLAN OR ARRANGEMENT. NOTWITHSTANDING ANYTHING ELSE TO THE
CONTRARY HEREIN, ANY PURPORTED TRANSFER OF THIS CERTIFICATE TO OR ON BEHALF OF AN EMPLOYEE
BENEFIT PLAN OR ARRANGEMENT SUBJECT TO ERISA OR TO THE CODE SHALL BE VOID AND OF NO EFFECT.
Certificate No. : 1
Cut-off Date : February 1, 2006
First Distribution Date : March 27, 2006
Initial Certificate Balance
of this Certificate
("Denomination") :
Initial Certificate Balances
of all Certificates
of this Class :
CUSIP :
Pass-Through Rate : Variable
Maturity Date : March 2036
CREDIT SUISSE FIRST BOSTON MORTGAGE ACCEPTANCE CORP.
Adjustable Rate Mortgage Trust 2006-1,
Adjustable Rate Mortgage-Backed Pass-Through Certificates, Series 2006-1
Class AR
evidencing a percentage interest in the distributions allocable to the Class AR
Certificates with respect to a Trust Fund consisting primarily of a pool of
adjustable rate conventional mortgage loans (the "Mortgage Loans") secured by
first liens on one- to four-family residential properties.
Credit Suisse First Boston Mortgage Securities Corp., as Depositor
Principal in respect of this Certificate is distributable monthly as set forth
herein. Accordingly, the Certificate Balance at any time may be less than the Certificate
Balance as set forth herein. This Certificate does not evidence an obligation of, or an
interest in, and is not guaranteed by the Depositor, the Seller, the Master Servicer, the
Servicers, the Special Servicer, the Trustee or the Trust Administrator referred to below
or any of their respective affiliates. Neither this Certificate nor the Mortgage Loans are
guaranteed or insured by any governmental agency or instrumentality.
This certifies that Credit Suisse Securities (USA) LLC, is the registered owner of
the Percentage Interest evidenced by this Certificate (obtained by dividing the
denomination of this Certificate by the aggregate of the denominations of all Certificates
of the Class to which this Certificate belongs) in certain monthly distributions with
respect to a Trust Fund consisting primarily of the Mortgage Loans deposited by Credit
Suisse First Boston Mortgage Securities Corp. (the "Depositor"). The Trust Fund was created
pursuant to a Pooling and Servicing Agreement dated as of the Cut-off Date specified above
(the "Agreement") among Credit Suisse First Boston Mortgage Securities Corp., as depositor,
DLJ Mortgage Capital, Inc., as seller, Xxxxx Fargo Bank, N.A., as trust administrator,
master servicer, servicer and back-up servicer, U.S. Bank National Association, as trustee,
and Select Portfolio Servicing, Inc., as a servicer and as special servicer. 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.
Any distribution of the proceeds of any remaining assets of the Trust Fund will be
made only upon presentment and surrender of this Class AR Certificate at the Corporate
Trust Office or the office or agency maintained by the Trust Administrator in New York, New
York.
Pursuant to Section 6.02(f) of the Agreement, no transfer of this Residual
Certificate shall be made unless the Trustee shall have received a representation letter
from the transferee of such Certificate, acceptable to and in form and substance
satisfactory to the Trust Administrator, to the effect that such transferee is not an
employee benefit plan or arrangement subject to Section 406 of ERISA or Section 4975 of the
Code, or a person using the assets of any such plan or arrangement which representation
letter shall not be an expense of the Trustee, the Trust Administrator or the Trust Fund.
In the event the representations referred to in the preceding sentence are not furnished,
such representation shall be deemed to have been made to the Trustee by the transferee's
acceptance of this Residual Certificate or by any beneficial owner who purchases an
interest in this Certificate in book-entry form. In the event that a representation is
violated, or any attempt to transfer this Residual Certificate to a plan or arrangement or
person using a plan's or arrangement's assets is attempted, the attempted transfer or
acquisition of this Certificate shall be void and of no effect.
Each Holder of this Class AR Certificate will be deemed to have agreed to be bound by
the restrictions of the Agreement, including but not limited to the restrictions that (i)
each person holding or acquiring any Ownership Interest in this Class AR Certificate must
be a Permitted Transferee, (ii) no Ownership Interest in this Class AR Certificate may be
transferred without delivery to the Trust Administrator of a transfer affidavit of the
initial owner or the proposed transferee in the form described in the Agreement, (iii) each
person holding or acquiring any Ownership Interest in this Class AR Certificate must agree
to require a transfer affidavit from any other person to whom such person attempts to
Transfer its Ownership Interest in this Class AR Certificate as required pursuant to the
Agreement, (iv) each person holding or acquiring an Ownership Interest in this Class AR
Certificate must agree not to transfer an Ownership Interest in this Class AR Certificate
if it has actual knowledge that the proposed transferee is not a Permitted Transferee and
(v) any attempted or purported transfer of any Ownership Interest in this Class AR
Certificate in violation of such restrictions will be absolutely null and void and will
vest no rights in the purported transferee.
Reference is hereby made to the further provisions of this Certificate set forth on
the reverse hereof, which further provisions shall for all purposes have the same effect as
if set forth at this place.
This Certificate shall not be entitled to any benefit under the Agreement or be valid
for any purpose unless manually countersigned by an authorized signatory of the Trust
Administrator.
IN WITNESS WHEREOF, the Trust Administrator has caused this Certificate to be duly
executed.
Dated: __________________
XXXXX FARGO BANK, N.A.
as Trust Administrator
By ______________________________
Countersigned:
By ___________________________
Authorized Signatory of
XXXXX FARGO BANK, N.A.
as Trust Administrator
EXHIBIT D-2
FORM OF CLASS AR-L CERTIFICATE
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "RESIDUAL 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").
NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE PROPOSED
TRANSFEREE DELIVERS TO THE TRUST ADMINISTRATOR A TRANSFER AFFIDAVIT IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.
NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE TRANSFEREE
DELIVERS TO THE TRUSTEE A REPRESENTATION LETTER TO THE EFFECT THAT SUCH TRANSFEREE IS NOT
AN EMPLOYEE BENEFIT PLAN OR ARRANGEMENT SUBJECT TO SECTION 406 OF THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA") OR ARRANGEMENT, OR SECTION 4975 OF THE
CODE OR A PERSON USING THE ASSETS OF SUCH A PLAN OR ARRANGEMENT. NOTWITHSTANDING ANYTHING
ELSE TO THE CONTRARY HEREIN, ANY PURPORTED TRANSFER OF THIS CERTIFICATE TO OR ON BEHALF OF
AN EMPLOYEE BENEFIT PLAN OR ARRANGEMENT SUBJECT TO ERISA OR TO THE CODE SHALL BE VOID AND
OF NO EFFECT.
Certificate No. : 1
Cut-off Date : February 1, 2006
First Distribution Date : March 27, 2006
Initial Certificate Balance
of this Certificate
("Denomination") :
Initial Certificate Balances
of all Certificates
of this Class :
CUSIP :
Pass-Through Rate : Variable
Maturity Date : March 2036
CREDIT SUISSE FIRST BOSTON MORTGAGE ACCEPTANCE CORP.
Adjustable Rate Mortgage Trust 2006-1,
Adjustable Rate Mortgage-Backed Pass-Through Certificates, Series 2006-1
Class AR-L
evidencing a percentage interest in the distributions allocable to the Class
AR-L Certificates with respect to a Trust Fund consisting primarily of a pool
of fixed rate conventional mortgage loans (the "Mortgage Loans") secured by
first liens on one- to four-family residential properties.
Credit Suisse First Boston Mortgage Securities Corp., as Depositor
Principal in respect of this Certificate is distributable monthly as set forth
herein. Accordingly, the Certificate Balance at any time may be less than the Certificate
Balance as set forth herein. This Certificate does not evidence an obligation of, or an
interest in, and is not guaranteed by the Depositor, the Seller, the Master Servicer, the
Servicer, the Trustee or the Trust Administrator referred to below or any of their
respective affiliates. Neither this Certificate nor the Mortgage Loans are guaranteed or
insured by any governmental agency or instrumentality.
This certifies that [__________________________________], is the registered
owner of the Percentage Interest evidenced by this Certificate (obtained by dividing the
denomination of this Certificate by the aggregate of the denominations of all Certificates
of the Class to which this Certificate belongs) in certain monthly distributions with
respect to a Trust Fund consisting primarily of the Mortgage Loans deposited by Credit
Suisse First Boston Mortgage Securities Corp. (the "Depositor"). The Trust Fund was created
pursuant to a Pooling and Servicing Agreement dated as of the Cut-off Date specified above
(the "Agreement") among Credit Suisse First Boston Mortgage Securities Corp., as depositor,
DLJ Mortgage Capital, Inc., as seller, Xxxxx Fargo Bank, N.A., as trust administrator,
master servicer, servicer and back-up servicer, U.S. Bank National Association, as trustee,
and Select Portfolio Servicing, Inc., as a servicer and as special servicer. 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.
Any distribution of the proceeds of any remaining assets of the Trust Fund will
be made only upon presentment and surrender of this Class AR-L Certificate at the Corporate
Trust Office or the office or agency maintained by the Trust Administrator in New York, New
York.
Pursuant to Section 6.02(f) of the Agreement, no transfer of this Residual
Certificate shall be made unless the Trustee shall have received a representation letter
from the transferee of such Certificate, acceptable to and in form and substance
satisfactory to the Trust Administrator, to the effect that such transferee is not an
employee benefit plan or arrangement subject to Section 406 of ERISA or Section 4975 of the
Code, or a person using the assets of any such plan or arrangement which representation
letter shall not be an expense of the Trustee, the Trust Administrator or the Trust Fund.
In the event the representations referred to in the preceding sentence are not furnished,
such representation shall be deemed to have been made to the Trustee by the transferee's
acceptance of this Residual Certificate or by any beneficial owner who purchases an
interest in this Certificate in book-entry form. In the event that a representation is
violated, or any attempt to transfer this Residual Certificate to a plan or arrangement or
person using a plan's or arrangement's assets is attempted, the attempted transfer or
acquisition of this Certificate shall be void and of no effect.
Each Holder of this Class AR-L Certificate will be deemed to have agreed to be
bound by the restrictions of the Agreement, including but not limited to the restrictions
that (i) each person holding or acquiring any Ownership Interest in this Class AR-L
Certificate must be a Permitted Transferee, (ii) no Ownership Interest in this Class AR-L
Certificate may be transferred without delivery to the Trust Administrator of a transfer
affidavit of the initial owner or the proposed transferee in the form described in the
Agreement, (iii) each person holding or acquiring any Ownership Interest in this Class AR-L
Certificate must agree to require a transfer affidavit from any other person to whom such
person attempts to Transfer its Ownership Interest in this Class AR-L Certificate as
required pursuant to the Agreement, (iv) each person holding or acquiring an Ownership
Interest in this Class AR-L Certificate must agree not to transfer an Ownership Interest in
this Class AR-L Certificate if it has actual knowledge that the proposed transferee is not
a Permitted Transferee and (v) any attempted or purported transfer of any Ownership
Interest in this Class AR-L Certificate in violation of such restrictions will be
absolutely null and void and will vest no rights in the purported transferee.
Reference is hereby made to the further provisions of this Certificate set
forth on the reverse hereof, which further provisions shall for all purposes have the same
effect as if set forth at this place.
This Certificate shall not be entitled to any benefit under the Agreement or be
valid for any purpose unless manually countersigned by an authorized signatory of the Trust
Administrator.
IN WITNESS WHEREOF, the Trust Administrator has caused this Certificate to be
duly executed.
Dated: __________________
XXXXX FARGO BANK, N.A.
as Trust Administrator
By ___________________________
Countersigned:
By ___________________________
Authorized Signatory of
XXXXX FARGO BANK, N.A.
as Trust Administrator
EXHIBIT E
FORM OF CLASS P CERTIFICATE
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS OWNERSHIP OF 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 SUBORDINATED IN RIGHT OF PAYMENT TO CERTAIN CERTIFICATES AS DESCRIBED
IN THE AGREEMENT REFERRED TO HEREIN.
THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED ("THE
ACT"). ANY RESALE OR TRANSFER OF THIS CERTIFICATE WITHOUT REGISTRATION THEREOF UNDER THE
ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPTED FROM THE REGISTRATION REQUIREMENTS OF THE
ACT AND IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.
PURSUANT TO SECTION 6.02(f) OF THE AGREEMENT, NEITHER THIS CERTIFICATE NOR ANY INTEREST
HEREIN MAY BE TRANSFERRED UNLESS THE TRANSFEREE DELIVERS TO THE TRUSTEE (I) A
REPRESENTATION LETTER TO THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN OR
ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA") OR SECTION 4975 OF THE CODE OR A PERSON USING THE ASSETS OF SUCH A PLAN OR
ARRANGEMENT, OR (II) IF THE PURCHASER IS AN INSURANCE COMPANY AND THE CERTIFICATE HAS BEEN
THE SUBJECT OF AN ERISA-QUALIFYING UNDERWRITING, A REPRESENTATION IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN OR (III) AN OPINION OF COUNSEL IN ACCORDANCE
WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN. IN THE EVENT THE REPRESENTATIONS
REFERRED TO IN THE PRECEDING SENTENCE ARE NOT FURNISHED, SUCH REPRESENTATION SHALL BE
DEEMED TO HAVE BEEN MADE TO THE TRUSTEE BY THE TRANSFEREE'S ACCEPTANCE OF THIS CERTIFICATE,
OR BY ANY BENEFICIAL OWNER WHO PURCHASES AN INTEREST IN THIS CERTIFICATE IN BOOK-ENTRY
FORM. IN THE EVENT THAT A REPRESENTATION IS VIOLATED, OR ANY ATTEMPT TO TRANSFER THIS
CERTIFICATE TO A PLAN OR ARRANGEMENT OR PERSON ACTING ON BEHALF OF A PLAN OR USING A PLAN'S
OR ARRANGEMENT'S ASSETS IS ATTEMPTED WITHOUT THE DELIVERY TO THE TRUSTEE OF THE OPINION OF
COUNSEL DESCRIBED ABOVE, THE ATTEMPTED TRANSFER OR ACQUISITION OF THIS CERTIFICATE SHALL BE
VOID AND OF NO EFFECT.
THIS CERTIFICATE HAS NO PRINCIPAL BALANCE AND IS NOT ENTITLED TO ANY DISTRIBUTIONS IN
RESPECT OF PRINCIPAL.
Certificate No. : P-1
Cut-off Date : February 1, 2006
First Distribution Date : March 27, 2006
Percentage Interest : ____%
CUSIP :
Maturity Date : March 2036
CREDIT SUISSE FIRST BOSTON MORTGAGE ACCEPTANCE CORP.
Adjustable Rate Mortgage Trust 2006-1,
Adjustable Rate Mortgage-Backed Pass-Through Certificates, Series 2006-1,
Class P
evidencing a 100% Percentage Interest in the distributions allocable to the
Class P Certificates with respect to a Trust Fund consisting primarily of a
pool of adjustable rate conventional mortgage loans (the "Mortgage Loans")
secured by first liens on one- to four-family residential properties.
Credit Suisse First Boston Mortgage Securities Corp., as Depositor
This Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Seller, the Master Servicer, the Servicers, the Special
Servicer, the Trustee or the Trust Administrator referred to below or any of their
respective affiliates. Neither this Certificate nor the Mortgage Loans are guaranteed or
insured by any governmental agency or instrumentality.
This certifies that _____________________________, is the registered owner of the
Percentage Interest evidenced by this Certificate (obtained by dividing the denomination of
this Certificate by the aggregate of the denominations of all Certificates of the Class to
which this Certificate belongs) in certain monthly distributions with respect to a Trust
Fund consisting primarily of the Mortgage Loans deposited by Credit Suisse First Boston
Mortgage Securities Corp. (the "Depositor"). The Trust Fund was created pursuant to a
Pooling and Servicing Agreement dated as of the Cut-off Date specified above (the
"Agreement") among Credit Suisse First Boston Mortgage Securities Corp., as depositor, DLJ
Mortgage Capital, Inc., as seller, Xxxxx Fargo Bank, N.A., as trust administrator, master
servicer, servicer and back-up servicer, U.S. Bank National Association, as trustee, and
Select Portfolio Servicing, Inc., as a servicer and as special servicer. 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.
No transfer of this Certificate shall be made unless such transfer is made pursuant
to an effective registration statement under the Securities Act and any applicable state
securities laws or is exempt from the registration requirements under said Act and such
laws. In the event that a transfer is to be made in reliance upon an exemption from the
Securities Act and such laws, in order to assure compliance with the Securities Act and
such laws, the Certificateholder desiring to effect such transfer and such
Certificateholder's prospective transferee shall each certify to the Trust Administrator in
writing the facts surrounding the transfer and (i) deliver a letter in substantially the
form of either Exhibit L and either (A) Exhibit M-1, provided that all of the Certificates
of the Class shall be transferred to one investor or the Depositor otherwise consents to
such transfer, or (B) Exhibit M-2 or (ii) there shall be delivered to the Trust
Administrator at the expense of the transferor an Opinion of Counsel that such transfer may
be made pursuant to an exemption from the Securities Act. The Holder hereof desiring to
effect such transfer shall, and does hereby agree to, indemnify the Trustee, the Trust
Administrator and the Depositor 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.
Pursuant to Section 6.02(f) of the Agreement, no transfer of an ERISA-Restricted
Certificate shall be made unless the Trustee shall have received either (i) a
representation letter from the transferee of such ERISA-Restricted Certificate, acceptable
to and in form and substance satisfactory to the Trust Administrator, to the effect that
such transferee is not an employee benefit plan or arrangement subject to Section 406 of
ERISA or Section 4975 of the Code, or a person using the assets of any such plan or
arrangement which representation letter shall not be an expense of the Trustee, the Trust
Administrator or the Trust Fund, (ii) if the purchaser is an insurance company and the
ERISA-Restricted Certificate has been the subject of an ERISA-Qualifying Underwriting, a
representation that the purchaser is an insurance company which is purchasing such
Certificates with funds contained in an "insurance company general account" (as such term
is defined in Section V(e) of Prohibited Transaction Class Exemption 95-60 ("PTCE 95-60"))
and that the purchase and holding of such Certificate are covered under Sections I and III
of PTCE 95-60 or (iii) in the case of any such ERISA-Restricted Certificate presented for
registration in the name of an employee benefit plan subject to ERISA or Section 4975 of
the Code (or comparable provisions of any subsequent enactments), or a person using such
plan's or arrangement's assets, an Opinion of Counsel satisfactory to the Trust
Administrator to the effect that the purchase or holding of such Certificate will not
result in prohibited transactions under Section 406 of ERISA and/or Section 4975 of the
Code and will not subject the Depositor, the Trustee, the Trust Administrator, the Master
Servicer or any other Servicer to any obligation in addition to those undertaken in this
Agreement, which Opinion of Counsel shall not be an expense of such parties or the Trust
Fund. In the event the representations referred to in the preceding sentence are not
furnished, such representation shall be deemed to have been made to the Trustee by the
transferee's acceptance of an ERISA-Restricted Certificate or by any beneficial owner who
purchases an interest in this certificate in book-entry form. In the event that a
representation is violated, or any attempt to transfer an ERISA-Restricted Certificate to a
plan or arrangement or person using a plan's or arrangement's assets is attempted without
the delivery to the Trustee of the Opinion of Counsel described above, the attempted
transfer or acquisition of this certificate shall be void and of no effect.
Reference is hereby made to the further provisions of this Certificate set forth
following the signature page hereof, which further provisions shall for all purposes have
the same effect as if set forth at this place.
This Certificate shall not be entitled to any benefit under the Agreement or be valid
for any purpose unless manually countersigned by an authorized signatory of the Trust
Administrator.
On any Distribution Date on which the Stated Principal Balance of Mortgage Loans in
such Loan Groups as are specified in the Agreement are less than those percentages set
forth in the Agreement, all remaining Mortgage Loans in such Loan Groups and all property
acquired in respect of such Mortgage Loans may be purchased as provided in the Agreement.
In the event that no such purchase occurs, the obligations and responsibilities created by
the Agreement will terminate upon the later of the maturity or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan remaining in the Trust Fund or the
disposition of all property in respect thereof and the distribution to Certificateholders
of all amounts required to be distributed pursuant to the Agreement. In no event, however,
will the trust created by the Agreement continue beyond the earlier of (i) the expiration
of 21 years from the death of the last survivor of the descendants living at the date of
the Agreement of a certain person named in the Agreement or (ii) the Distribution Date
following the third anniversary of the scheduled maturity date of the Mortgage Loan having
the latest scheduled maturity date as of the related Cut-off Date. Any term used herein
that is defined in the Agreement shall have the meaning assigned in the Agreement, and
nothing herein shall be deemed inconsistent with that meaning.
IN WITNESS WHEREOF, the Trust Administrator has caused this Certificate to be duly
executed.
Dated: _______________________
XXXXX FARGO BANK, N.A.
as Trust Administrator
By __________________________
Countersigned:
By ___________________________
Authorized Signatory of
XXXXX FARGO BANK, N.A.
as Trust Administrator
EXHIBIT F
FORM OF CLASS [__]-X CERTIFICATE
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS OWNERSHIP OF 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 SUBORDINATED IN RIGHT OF PAYMENT TO CERTAIN CERTIFICATES AS DESCRIBED
IN THE AGREEMENT REFERRED TO HEREIN.
THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED ("THE
ACT"). ANY RESALE OR TRANSFER OF THIS CERTIFICATE WITHOUT REGISTRATION THEREOF UNDER THE
ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPTED FROM THE REGISTRATION REQUIREMENTS OF THE
ACT AND IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.
PURSUANT TO SECTION 6.02(f) OF THE AGREEMENT, NEITHER THIS CERTIFICATE NOR ANY INTEREST
HEREIN MAY BE TRANSFERRED UNLESS THE TRANSFEREE DELIVERS TO THE TRUSTEE (I) A
REPRESENTATION LETTER TO THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN OR
ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA") OR SECTION 4975 OF THE CODE OR A PERSON USING THE ASSETS OF SUCH A PLAN OR
ARRANGEMENT, OR (II) IF THE PURCHASER IS AN INSURANCE COMPANY AND THE CERTIFICATE HAS BEEN
THE SUBJECT OF AN ERISA-QUALIFYING UNDERWRITING, A REPRESENTATION IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN OR (III) AN OPINION OF COUNSEL IN ACCORDANCE
WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN. IN THE EVENT THE REPRESENTATIONS
REFERRED TO IN THE PRECEDING SENTENCE ARE NOT FURNISHED, SUCH REPRESENTATION SHALL BE
DEEMED TO HAVE BEEN MADE TO THE TRUSTEE BY THE TRANSFEREE'S ACCEPTANCE OF THIS CERTIFICATE,
OR BY ANY BENEFICIAL OWNER WHO PURCHASES AN INTEREST IN THIS CERTIFICATE IN BOOK-ENTRY
FORM. IN THE EVENT THAT A REPRESENTATION IS VIOLATED, OR ANY ATTEMPT TO TRANSFER THIS
CERTIFICATE TO A PLAN OR ARRANGEMENT OR PERSON ACTING ON BEHALF OF A PLAN OR USING A PLAN'S
OR ARRANGEMENT'S ASSETS IS ATTEMPTED WITHOUT THE DELIVERY TO THE TRUSTEE OF THE OPINION OF
COUNSEL DESCRIBED ABOVE, THE ATTEMPTED TRANSFER OR ACQUISITION OF THIS CERTIFICATE SHALL BE
VOID AND OF NO EFFECT.
THIS CERTIFICATE HAS NO PRINCIPAL BALANCE AND IS NOT ENTITLED TO ANY DISTRIBUTIONS IN
RESPECT OF PRINCIPAL.
Certificate No. : 1
Cut-off Date : February 1, 2006
First Distribution Date : March 27, 2006
Initial Notional Amount of this
Certificate ("Denomination") :
Initial Class Notional Amount of
all Certificates of this Class :
Percentage Interest : 100%
CUSIP :
Pass-Through Rate : N/A
Maturity Date : March 2036
CREDIT SUISSE FIRST BOSTON MORTGAGE ACCEPTANCE CORP.
Adjustable Rate Mortgage Trust 2006-1,
Adjustable Rate Mortgage-Backed Pass-Through Certificates, Series 2006-1
Class [__]-X
evidencing a 100% Percentage Interest in the distributions allocable to the
Class [__]-X Certificates with respect to a Trust Fund consisting primarily of
a pool of adjustable rate conventional mortgage loans (the "Mortgage Loans")
secured by first liens on one- to four-family residential properties.
Credit Suisse First Boston Mortgage Securities Corp., as Depositor
This Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Seller, the Master Servicer, the Servicers, the Special
Servicer, the Trustee or the Trust Administrator referred to below or any of their
respective affiliates. Neither this Certificate nor the Mortgage Loans are guaranteed or
insured by any governmental agency or instrumentality.
This certifies that [_____________________________________________], is the
registered owner of the Percentage Interest evidenced by this Certificate (obtained by
dividing the denomination of this Certificate by the aggregate of the denominations of all
Certificates of the Class to which this Certificate belongs) in certain monthly
distributions with respect to a Trust Fund consisting primarily of the Mortgage Loans
deposited by Credit Suisse First Boston Mortgage Securities Corp. (the "Depositor"). The
Trust Fund was created pursuant to a Pooling and Servicing Agreement dated as of the
Cut-off Date specified above (the "Agreement") among Credit Suisse First Boston Mortgage
Securities Corp., as depositor, DLJ Mortgage Capital, Inc., as seller, Xxxxx Fargo Bank,
N.A., as trust administrator, master servicer, servicer and back-up servicer, U.S. Bank
National Association, as trustee, and Select Portfolio Servicing, Inc., as a servicer and
as special servicer. 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.
No transfer of this Certificate shall be made unless such transfer is made pursuant
to an effective registration statement under the Securities Act and any applicable state
securities laws or is exempt from the registration requirements under said Act and such
laws. In the event that a transfer is to be made in reliance upon an exemption from the
Securities Act and such laws, in order to assure compliance with the Securities Act and
such laws, the Certificateholder desiring to effect such transfer and such
Certificateholder's prospective transferee shall each certify to the Trust Administrator in
writing the facts surrounding the transfer and (i) deliver a letter in substantially the
form of either Exhibit L and either (A) Exhibit M 1, provided that all of the Certificates
of the Class shall be transferred to one investor or the Depositor otherwise consents to
such transfer, or (B) Exhibit M 2 or (ii) there shall be delivered to the Trust
Administrator at the expense of the transferor an Opinion of Counsel that such transfer may
be made pursuant to an exemption from the Securities Act. The Holder hereof desiring to
effect such transfer shall, and does hereby agree to, indemnify the Trustee, the Trust
Administrator and the Depositor 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.
Pursuant to Section 6.02(f) of the Agreement, no transfer of an ERISA-Restricted
Certificate shall be made unless the Trustee shall have received either (i) a
representation letter from the transferee of such ERISA-Restricted Certificate, acceptable
to and in form and substance satisfactory to the Trust Administrator, to the effect that
such transferee is not an employee benefit plan or arrangement subject to Section 406 of
ERISA or Section 4975 of the Code, or a person using the assets of any such plan or
arrangement which representation letter shall not be an expense of the Trustee, the Trust
Administrator or the Trust Fund, (ii) if the purchaser is an insurance company and the
ERISA-Restricted Certificate has been the subject of an ERISA-Qualifying Underwriting, a
representation that the purchaser is an insurance company which is purchasing such
Certificates with funds contained in an "insurance company general account" (as such term
is defined in Section V(e) of Prohibited Transaction Class Exemption 95-60 ("PTCE 95-60"))
and that the purchase and holding of such Certificate are covered under Sections I and III
of PTCE 95-60 or (iii) in the case of any such ERISA-Restricted Certificate presented for
registration in the name of an employee benefit plan subject to ERISA or Section 4975 of
the Code (or comparable provisions of any subsequent enactments), or a person using such
plan's or arrangement's assets, an Opinion of Counsel satisfactory to the Trust
Administrator to the effect that the purchase or holding of such Certificate will not
result in prohibited transactions under Section 406 of ERISA and/or Section 4975 of the
Code and will not subject the Depositor, the Trustee, the Trust Administrator, the Master
Servicer or any other Servicer to any obligation in addition to those undertaken in this
Agreement, which Opinion of Counsel shall not be an expense of such parties or the Trust
Fund. In the event the representations referred to in the preceding sentence are not
furnished, such representation shall be deemed to have been made to the Trustee by the
transferee's acceptance of an ERISA-Restricted Certificate or by any beneficial owner who
purchases an interest in this certificate in book-entry form. In the event that a
representation is violated, or any attempt to transfer an ERISA-Restricted Certificate to a
plan or arrangement or person using a plan's or arrangement's assets is attempted without
the delivery to the Trustee of the Opinion of Counsel described above, the attempted
transfer or acquisition of this certificate shall be void and of no effect.
Reference is hereby made to the further provisions of this Certificate set forth on
the reverse hereof, which further provisions shall for all purposes have the same effect as
if set forth at this place.
This Certificate shall not be entitled to any benefit under the Agreement or be valid
for any purpose unless manually countersigned by an authorized signatory of the Trust
Administrator.
On any Distribution Date on which the Stated Principal Balance of Mortgage Loans in
such Loan Groups as are specified in the Agreement are less than those percentages set
forth in the Agreement, all remaining Mortgage Loans in such Loan Groups and all property
acquired in respect of such Mortgage Loans may be purchased as provided in the Agreement.
In the event that no such purchase occurs, the obligations and responsibilities created by
the Agreement will terminate upon the later of the maturity or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan remaining in the Trust Fund or the
disposition of all property in respect thereof and the distribution to Certificateholders
of all amounts required to be distributed pursuant to the Agreement. In no event, however,
will the trust created by the Agreement continue beyond the earlier of (i) the expiration
of 21 years from the death of the last survivor of the descendants living at the date of
the Agreement of a certain person named in the Agreement or (ii) the Distribution Date
following the third anniversary of the scheduled maturity date of the Mortgage Loan having
the latest scheduled maturity date as of the related Cut-off Date. Any term used herein
that is defined in the Agreement shall have the meaning assigned in the Agreement, and
nothing herein shall be deemed inconsistent with that meaning.
IN WITNESS WHEREOF, the Trust Administrator has caused this Certificate to be duly
executed.
Dated: __________________
XXXXX FARGO BANK, N.A.
as Trust Administrator
By __________________________
Countersigned:
By ___________________________
Authorized Signatory of
XXXXX FARGO BANK, N.A.
as Trust Administrator
EXHIBIT G
FORM OF REVERSE OF CERTIFICATES
CREDIT SUISSE FIRST BOSTON MORTGAGE ACCEPTANCE CORP.
Adjustable Rate Mortgage Trust 2006-1,
Adjustable Rate Mortgage-Backed Pass-Through Certificates, Series 2006-1
Class [__]-[__]-[__]
This Certificate is one of a duly authorized issue of Certificates designated as
Credit Suisse First Boston Mortgage Securities Corp., Adjustable Rate Mortgage-Backed
Pass-Through Certificates, Series 2006-1, of the Series specified on the face hereof
(herein collectively called the "Certificates"), and representing a beneficial ownership
interest in the Trust Fund created by the Agreement.
The Certificateholder, by its acceptance of this Certificate, agrees that it will
look solely to the funds on deposit in the Certificate Account for payment hereunder and
that neither the Trustee nor the Trust Administrator is liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as expressly
provided in the Agreement, subject to any liability under the Agreement.
This Certificate does not purport to summarize the Agreement and reference is made to
the Agreement for the interests, rights and limitations of rights, benefits, obligations
and duties evidenced thereby, and the rights, duties and immunities of the Trustee and the
Trust Administrator.
Pursuant to the terms of the Agreement, a distribution 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 (the "Distribution Date"), commencing on the first Distribution Date specified on
the face hereof, to the Person in whose name this Certificate is registered at the close of
business on the applicable 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 Holders
of Certificates of the Class to which this Certificate belongs on such Distribution Date
pursuant to the Agreement. The Record Date applicable to each Distribution Date is
(1) with respect to all Certificates other than the LIBOR Certificates held in Book-Entry
Form on such Distribution Date, the close of business on the last day of the calendar month
preceding the month in which such Distribution Date occurs and (2) with respect to the
LIBOR Certificates held in Book-Entry Form on such Distribution Date, the close of business
on the Business Day immediately preceding such Distribution Date.
Distributions on this Certificate shall be made by wire transfer of immediately
available funds to the account of the Holder hereof at a bank or other entity having
appropriate facilities therefor, if such Certificateholder shall have so notified the Trust
Administrator in writing at least five Business Days prior to the related Record Date and
such Certificateholder shall satisfy the conditions to receive such form of payment set
forth in the Agreement, or, if not, by check mailed by first class mail to the address of
such Certificateholder 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 or such other location specified in the
notice to Certificateholders of such final distribution.
The Agreement permits, with certain exceptions therein provided, the amendment
thereof and the modification of the rights and obligations of the Trustee, the Trust
Administrator and the rights of the Certificateholders under the Agreement at any time by
the Depositor, the Master Servicer, the Servicers, the Special Servicer, the Seller, the
Trustee and the Trust Administrator with the consent of the Holders of Certificates
affected by such amendment evidencing the requisite Percentage Interest, as provided 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 therefor 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 of the Trust
Administrator upon surrender of this Certificate for registration of transfer at the
Corporate Trust Office or the office or agency maintained by the Trust Administrator in New
York, New York, accompanied by a written instrument of transfer in form satisfactory to the
Trust Administrator and the Certificate Registrar 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 and evidencing the same
aggregate Percentage Interest in the Trust Fund will be issued to the designated transferee
or transferees.
The Certificates are issuable only as registered Certificates without coupons in
denominations specified in the Agreement. As provided in the Agreement and subject to
certain limitations therein set forth, Certificates are exchangeable for new Certificates
of the same Class in authorized denominations and 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, but
the Trust Administrator may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection therewith.
The Depositor, each Servicer, the Master Servicer, the Seller, the Trustee and the
Trust Administrator and any agent of the Depositor, each Servicer, the Master Servicer, the
Seller, the Trustee or the Trust Administrator may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the Depositor,
the Servicers, the Master Servicer, the Seller, the Trustee, the Trust Administrator or any
such agent shall be affected by any notice to the contrary.
On any Distribution Date on which the Stated Principal Balance of Mortgage Loans in
such Loan Groups as are specified in the Agreement are less than those percentages set
forth in the Agreement, all remaining Mortgage Loans in such Loan Groups and all property
acquired in respect of such Mortgage Loans may be purchased as provided in the Agreement.
In the event that no such purchase occurs, the obligations and responsibilities created by
the Agreement will terminate upon the later of the maturity or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan remaining in the Trust Fund or the
disposition of all property in respect thereof and the distribution to Certificateholders
of all amounts required to be distributed pursuant to the Agreement. In no event, however,
will the trust created by the Agreement continue beyond the earlier of (i) the expiration
of 21 years from the death of the last survivor of the descendants living at the date of
the Agreement of a certain person named in the Agreement or (ii) the Distribution Date
following the third anniversary of the scheduled maturity date of the Mortgage Loan having
the latest scheduled maturity date as of the related Cut-off Date. Any term used herein
that is defined in the Agreement shall have the meaning assigned in the Agreement, and
nothing herein shall be deemed inconsistent with that meaning.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
(Please print or typewrite name and address including postal zip code of assignee)
the Percentage Interest evidenced by the within Certificate and hereby authorizes the
transfer of registration of such Percentage 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
denomination and Class, to the above named assignee and deliver such Certificate to the
following address:
______________________________________________________________________________
Dated:
_______________________________________________________
Signature by or on behalf of assignor
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, the assignee named above, or, as its agent.
EXHIBIT H-1
FORM OF SERVICER INFORMATION
The following information will be e-mailed to the Master Servicer by each Servicer and to
the Trust Administrator by the Master Servicer:
Servicer Loan Number
Trust Loan Number (if applicable)
Scheduled Net Interest
Scheduled Principal
Curtailment Applied
Curtailment Adjustment
Mortgage Rate
Servicing Fee Rate
P&I Payment
Beginning Scheduled Balance
Ending Scheduled Balance
Ending Actual Principal Balance
Due Date
Prepayment in full Principal
Prepayment in full Net Interest
Prepayment in full Penalty
Delinquencies:
1-30
31-60
61-90
91 +
Foreclosures
REO Properties
Loss Amounts & Loss Types (i.e., Bankruptcy, Excess, Deficient Valuation, Debt Reduction)
Xxxxx Fargo Bank NA
0000 Xxx Xxxxxxxxx Xxxx
Xxxxxxxx, XX 00000
Attention: Client Manager, CSFB ARMT 2006-1
Phone No. 000-000-0000
Fax No. 000-000-0000
[name]
Xxxxx Fargo Bank, N.A.
[address]
Phone No. [________]
Fax No. [________]
[email]
EXHIBIT H-2
FORM OF REALIZED LOSS CALCULATION
XXXXX FARGO BANK, N.A.
Form 332
--------------------------------------------------------------------------------------------
Calculation of Realized Loss
Purpose
To provide the Servicer with a form for the calculation of any Realized Loss (or gain) as a
result of a Mortgage Loan having been foreclosed and Liquidated.
Distribution
The Servicer will prepare the form in duplicate and send the original together with
evidence of conveyance of title and appropriate supporting documentation to the Master
Servicer with the Monthly Accounting Reports which supports the Mortgage Loan's removal
from the Mortgage Loan Activity Report. The Servicer will retain the duplicate for its own
records.
Due Date
With respect to any liquidated Mortgage Loan, the form will be submitted to the Master
Servicer no later than the date on which statements are due to the Master Servicer under
Section 4.06 of this Agreement (the "Statement Date") in the month following receipt of
final liquidation proceeds and supporting documentation relating to such liquidated
Mortgage Loan; provided, that if such Statement Date is not at least 30 days after receipt
of final liquidation proceeds and supporting documentation relating to such liquidated
Mortgage Loan, then the form will be submitted on the first Statement Date occurring after
the 30th day following receipt of final liquidation proceeds and supporting documentation.
Preparation Instructions
The numbers on the form correspond with the numbers listed below.
1. The actual Unpaid Principal Balance of the Mortgage Loan.
2. The Total Interest Due less the aggregate amount of servicing fee that would have
been earned if all delinquent payments had been made as agreed.
3-7. Complete as necessary. All line entries must be supported by copies of appropriate
statements, vouchers, receipts, canceled checks, etc., to document the expense.
Entries not properly documented will not be reimbursed to the Servicer.
8. Accrued Servicing Fees based upon the Scheduled Principal Balance of the Mortgage
Loan as calculated on a monthly basis.
10. The total of lines 1 through 9.
Credits
11-17. Complete as necessary. All line entries must be supported by copies of the
appropriate claims forms, statements, payment checks, etc. to document the credit.
If the Mortgage Loan is subject to a Bankruptcy Deficiency, the difference between
the Unpaid Principal Balance of the Note prior to the Bankruptcy Deficiency and the
Unpaid Principal Balance as reduced by the Bankruptcy Deficiency should be input on
line 16.
18. The total of lines 11 through 17.
Total Realized Loss (or Amount of Any Gain)
19. The total derived from subtracting line 18 from 10. If the amount represents a
realized gain, show the amount in parenthesis ( ).
XXXXX FARGO BANK, N.A.
CALCULATION OF REALIZED LOSS
--------------------------------------------------------------------------------------------
XXXXX FARGO BANK, N.A. Trust: ___________________________
Prepared by: __________________ Date: _______________
Phone: ______________________
------------------- ------------------ -------------------
Service Loan No. Servicer Name Servicer Address
------------------- ------------------ -------------------
XXXXX FARGO BANK, N.A.
Loan No._____________________________
Borrower's Name:________________________________________________________
Property
Address:________________________________________________________________
Liquidation and Acquisition Expenses:
Actual Unpaid Principal Balance of $ _______________(1)
Mortgage Loan
Interest accrued at Net Rate ________________(2)
Attorney's Fees ________________(3)
Taxes ________________(4)
Property Maintenance ________________(5)
MI/Hazard Insurance Premiums ________________(6)
Hazard Loss Expenses ________________(7)
Accrued Servicing Fees ________________(8)
Other (itemize) ________________(9)
$ _________________
_________________________________________
__________________
_________________________________________
__________________
_________________________________________
__________________
_________________________________________
Total Expenses $ ______________(10)
Credits:
Escrow Balance $ ______________(11)
HIP Refund ________________(12)
Rental Receipts ________________(13)
Hazard Loss Proceeds ________________(14)
Primary Mortgage Insurance Proceeds ________________(15)
Proceeds from Sale of Acquired Property ________________(16)
Other (itemize) ________________(17)
___________________
_________________________________________
___________________
_________________________________________
Total Credits $________________(18)
Total Realized Loss (or Amount of Gain) $________________(19)
EXHIBIT I-1
FORM OF TRUST RECEIPT AND INITIAL CERTIFICATION
[_________________, 200_]
U.S. Bank National Association
as Trustee for the
Adjustable Rate Mortgage Trust 2006-1
Corporate Trust Services/Structured Finance
60 Xxxxxxxxxx Avenue, EP MN WS3D
Xx. Xxxx, Xxxxxxxxx 00000
Xxxxx Fargo Bank, N.A.,
as Trust Administrator and Master Servicer for the
Adjustable Rate Mortgage Trust 2006-1
0000 Xxx Xxxxxxxxx Xxxx,
Xxxxxxxx, XX 00000
Credit Suisse First Boston Mortgage Securities Corp.
00 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxx Xxxx
Re: Custodial Agreement, dated as of February 1, 2006, among U.S. Bank National
Association, as Trustee, Xxxxx Fargo Bank, N.A., as Trust Administrator, and
[_______________], as Custodian.
Ladies and Gentlemen:
In accordance with the provisions of Section 4 of the above-referenced
Custodial Agreement, the undersigned, as the Custodian, hereby certifies as to each
Mortgage Loan in the Mortgage Loan Schedule that (i) it has received the original Mortgage
Note and Assignment of Mortgage with respect to each Mortgage Loan identified on the
Mortgage Loan Schedule attached hereto and (ii) such Mortgage Note has been reviewed by it
and appears regular on its face and relates to such Mortgage Loan. The Custodian makes no
representations as to (i) the validity, legality, enforceability, sufficiency, due
authorization or genuineness of any of the documents contained in each Custodial File or of
any of the Mortgage Loans or (ii) the collectability, insurability, effectiveness or
suitability of any such Mortgage Loan.
The Custodian hereby confirms that it is holding each such Mortgage Note,
Assignment of Mortgage and Assignment of Note as agent and bailee of, and custodian for the
exclusive use and benefit, and subject to the sole direction, of the Trustee pursuant to
the terms and conditions of the Custodial Agreement.
This Trust Receipt and Initial Certification is not divisible or negotiable.
The Custodian will accept and act on instructions with respect to the Mortgage
Loans subject hereto upon surrender of this Trust Receipt and Initial Certification at its
office at [CUSTODIAN ADDRESS], Attention: Document Custodian.
Capitalized terms used herein shall have the meaning ascribed to them in the
Custodial Agreement.
[_______________________________],
as Custodian
By: ____________________________
Name:
Title:
EXHIBIT I-2
FORM OF TRUST RECEIPT AND SUBSEQUENT CERTIFICATION
[_________________, 200_]
U.S. Bank National Association
as Trustee for the
Adjustable Rate Mortgage Trust 2006-1
Corporate Trust Services/Structured Finance
60 Xxxxxxxxxx Avenue, EP MN WS3D
Xx. Xxxx, Xxxxxxxxx 00000
Xxxxx Fargo Bank, N.A.,
as Trust Administrator and Master Servicer for the
Adjustable Rate Mortgage Trust 2006-1
0000 Xxx Xxxxxxxxx Xxxx,
Xxxxxxxx, XX 00000
Credit Suisse First Boston Mortgage Securities Corp.
00 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxx Xxxx
Re: Custodial Agreement, dated as of February 1, 2006, among U.S. Bank National
Association, as Trustee, Xxxxx Fargo Bank, N.A., as Trust Administrator, and
[_______________], as Custodian
Ladies and Gentlemen:
In accordance with the provisions of Section 4 of the above-referenced
Custodial Agreement, the undersigned, as the Custodian, hereby certifies as to each
Subsequent Mortgage Loan that (i) it has received the original Mortgage Note and Assignment
of Mortgage with respect to each such Subsequent Mortgage Loan identified on the Mortgage
Loan Schedule attached hereto and (ii) such Mortgage Note has been reviewed by it and
appears regular on its face and relates to such Subsequent Mortgage Loan. The Custodian
makes no representations as to (i) the validity, legality, enforceability, sufficiency, due
authorization or genuineness of any of the documents contained in each Custodial File or of
any of the Subsequent Mortgage Loans or (ii) the collectability, insurability,
effectiveness or suitability of any such Subsequent Mortgage Loan.
The Custodian hereby confirms that it is holding each such Mortgage Note,
Assignment of Mortgage and Assignment of Note as agent and bailee of, and custodian for the
exclusive use and benefit, and subject to the sole direction, of the Trustee pursuant to
the terms and conditions of the Custodial Agreement.
This Trust Receipt and Subsequent Certification is not divisible or negotiable.
The Custodian will accept and act on instructions with respect to the
Subsequent Mortgage Loans subject hereto upon surrender of this Trust Receipt and
Subsequent Certification at its office at [CUSTODIAN ADDRESS], Attention: Document
Custodian.
Capitalized terms used herein shall have the meaning ascribed to them in the
Custodial Agreement.
[_______________________________],
as Custodian
By: ______________________________
Name:
Title:
EXHIBIT J
FORM OF TRUST RECEIPT AND FINAL CERTIFICATION
[date]
U.S. Bank National Association
as Trustee for the
Adjustable Rate Mortgage Trust 2006-1
Corporate Trust Services/Structured Finance
60 Xxxxxxxxxx Avenue, EP MN WS3D
Xx. Xxxx, Xxxxxxxxx 00000
Xxxxx Fargo Bank, N.A.,
as Trust Administrator and Master Servicer for the
Adjustable Rate Mortgage Trust 2006-1
0000 Xxx Xxxxxxxxx Xxxx,
Xxxxxxxx, XX 00000
Credit Suisse First Boston Mortgage Securities Corp.
00 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxx Xxxx
Re: Custodial Agreement, dated as of February 1, 2006, among U.S. Bank National
Association, as Trustee, Xxxxx Fargo Bank, N.A., as Trust Administrator, and
[____________________], as Custodian
Ladies and Gentlemen:
In accordance with the provisions of Section [5][6] of the above-referenced
Custodial Agreement, the undersigned, as the Custodian, hereby certifies that as to each
Mortgage Loan listed on the Mortgage Loan Schedule (other than any Mortgage Loan paid in
full or any Mortgage Loan listed on the attachment hereto) it has reviewed the Custodial
Files and has determined that (i) all documents required to be delivered to it pursuant to
Sections 2(i)-(ix) of the Custodial Agreement are in its possession; (ii) such documents
have been reviewed by it and appear regular on their face and related to such Mortgage
Loan; (iii) all Assignments of Mortgage or intervening assignments of mortgage, as
applicable, have been submitted for recording in the jurisdictions in which recording is
necessary; and (iv) each Mortgage Note has been endorsed as provided in Section 2(ii) of
the Custodial Agreement and each Mortgage has been assigned in accordance with
Section 2(vi) of the Custodial Agreement. The Custodian makes no representations as to (i)
the validity, legality, enforceability, sufficiency, due authorization or genuineness of
any of the documents contained in each Custodial File or of any of the Mortgage Loans or
(ii) the collectability, insurability, effectiveness or suitability of any such Mortgage
Loan.
The Custodian hereby confirms that it is holding each such Custodial File as
agent and bailee of, and custodian for the exclusive use and benefit, and subject to the
sole direction, of Trustee pursuant to the terms and conditions of the Custodial Agreement.
This Trust Receipt and Final Certification is not divisible or negotiable.
The Custodian will accept and act on instructions with respect to the Mortgage
Loans subject hereto upon surrender of this Trust Receipt and Initial Certification at its
office at [CUSTODIAN ADDRESS], Attention: Document Custodian.
Capitalized terms used herein shall have the meaning ascribed to them in the
Custodial Agreement.
[_______________________________],
as Custodian
By: ______________________________
Name:
Title:
EXHIBIT K
FORM OF REQUEST FOR RELEASE
[date]
To: U.S. Bank National Association
In connection with the administration of the Mortgage Loans held by you as
Trustee under the Pooling and Servicing Agreement, dated as of February 1, 2006, among
Credit Suisse First Boston Mortgage Securities Corp., as depositor, DLJ Mortgage Capital,
Inc., as seller, Select Portfolio Servicing, Inc., as a servicer and as special servicer,
U.S. Bank National Association, as trustee, and Xxxxx Fargo Bank, N.A., as a servicer,
master servicer, back-up servicer and trust administrator (the "Pooling and Servicing
Agreement"), the undersigned hereby requests a release of the Mortgage File held by you as
Trustee with respect to the following described Mortgage Loan for the reason indicated
below.
Mortgagor's Name:
Address:
Loan No.:
Reason for requesting file:
____ 1. Mortgage Loan paid in full.
(The Servicer hereby certifies that all amounts received in
connection with the Mortgage Loan have been or will be credited
to the Certificate Account pursuant to the Pooling and Servicing
Agreement.)
____ 2. Mortgage Loan repurchased.(The Servicer hereby certifies that
the Purchase Price has been credited to the Certificate Account
pursuant to the Pooling and Servicing Agreement.)
____ 3. The Mortgage Loan is being foreclosed.
____ 4. Other. (Describe)
The undersigned acknowledges that the above Mortgage File will be held by the
undersigned in accordance with the provisions of the Pooling and Servicing Agreement and
will be returned, except if the Mortgage Loan has been paid in full or repurchased (in
which case the Mortgage File will be retained by us permanently) when no longer required by
us for such purpose.
Capitalized terms used herein shall have the meanings ascribed to them in the
Pooling and Servicing Agreement.
[NAME OF SERVICER]
By: _________________________________
Name:
Title:
EXHIBIT L
FORM OF TRANSFEROR CERTIFICATE
[date]
Credit Suisse First Boston Mortgage Securities Corp.
00 Xxxxxxx Xxxxxx, 0xx Xxxxx
Xxx Xxxx, XX 00000
Attention: Xxxxx Xxxx
[Trust Administrator]
Re: [__________________] Mortgage-Backed Pass-Through Certificates, Series
200_-__
Ladies and Gentlemen:
In connection with our disposition of the above Certificates we certify that
(a) we understand that the Certificates have not been registered under the Securities Act
of 1933, as amended (the "Act"), and are being disposed by us in a transaction that is
exempt from the registration requirements of the Act, (b) we have not offered or sold any
Certificates to, or solicited offers to buy any Certificates from, any person, or otherwise
approached or negotiated with any person with respect thereto, in a manner that would be
deemed, or taken any other action which would result in, a violation of Section 5 of the
Act and (c) to the extent we are disposing of a Class AR Certificate, we have no knowledge
the Transferee is not a Permitted Transferee.
Very truly yours,
________________________________
Print Name of Transferor
By:______________________________
Authorized Officer
EXHIBIT M-1
FORM OF INVESTMENT LETTER
[date]
Credit Suisse First Boston Mortgage Securities Corp.
00 Xxxxxxx Xxxxxx, 0xx Xxxxx
Xxx Xxxx, XX 00000
Attention: Xxxxx Xxxx
[Trust Administrator]
Re: [__________________] Mortgage-Backed Pass-Through Certificates, Series
200_-__
Ladies and Gentlemen:
In connection with our acquisition of the above Certificates we certify that
(a) we understand that the Certificates are not being registered under the Securities Act
of 1933, as amended (the "Act"), or any state securities laws and are being transferred to
us in a transaction that is exempt from the registration requirements of the Act and any
such laws, (b) we are an "accredited investor," as defined in Regulation D under the Act,
and have such knowledge and experience in financial and business matters that we are
capable of evaluating the merits and risks of investments in the Certificates, (c) we have
had the opportunity to ask questions of and receive answers from the Depositor concerning
the purchase of the Certificates and all matters relating thereto or any additional
information deemed necessary to our decision to purchase the Certificates, (d) either (i)
we are not an employee benefit plan or arrangement that is subject to the Employee
Retirement Income Security Act of 1974, as amended, or Section 4975 of the Internal Revenue
Code of 1986, as amended, nor are we using the assets of any such plan or arrangement, (ii)
we are providing an Opinion of Counsel which establishes to the reasonable satisfaction of
the Trust Administrator that the purchase and holding of ERISA-Restricted Certificates by,
on behalf of or with "plan assets" of such plan or arrangement will not result in
non-exempt prohibited transactions under Section 406 of ERISA or Section 4975 of the Code,
and will not subject the Depositor, the Trustee, the Trust Administrator, the Master
Servicer or any other Servicer to any obligation in addition to those undertaken in this
Agreement or (iii) if, in the case of ERISA-Restricted Certificates that have been the
subject of an ERISA-Qualifying Underwriting, we are an insurance company, we are purchasing
such Certificates with funds contained in an "insurance company general account" (as such
term is defined in Section V(e) of Prohibited Transaction Class Exemption 95-60 ("PTCE
95-60")) and our purchase and holding of such Certificates are covered under Sections I and
III of PTCE 95-60, (e) we are acquiring the Certificates for investment for our own account
and not with a view to any distribution of such Certificates (but without prejudice to our
right at all times to sell or otherwise dispose of the Certificates in accordance with
clause (g) below), (f) we have not offered or sold any Certificates to, or solicited offers
to buy any Certificates from, any person, or otherwise approached or negotiated with any
person with respect thereto, or taken any other action which would result in a violation of
Section 5 of the Act, and (g) we will not sell, transfer or otherwise dispose of any
Certificates unless (1) such sale, transfer or other disposition is made pursuant to an
effective registration statement under the Act or is exempt from such registration
requirements, and if requested, we will at our expense provide an opinion of counsel
satisfactory to the addressees of this Certificate that such sale, transfer or other
disposition may be made pursuant to an exemption from the Act, (2) the purchaser or
transferee of such Certificate has executed and delivered to you a certificate to
substantially the same effect as this certificate, and (3) the purchaser or transferee has
otherwise complied with any conditions for transfer set forth in the Pooling and Servicing
Agreement.
Very truly yours,
________________________________
Print Name of Transferor
By: ____________________________
Authorized Officer
EXHIBIT M-2
FORM OF RULE 144A LETTER
[date]
Credit Suisse First Boston Mortgage Securities Corp.
00 Xxxxxxx Xxxxxx, 0xx Xxxxx
Xxx Xxxx, XX 00000
Attention: Xxxxx Xxxx
[Trust Administrator]
Re: [__________________] Mortgage-Backed Pass-Through Certificates, Series
200_-__
Ladies and Gentlemen:
In connection with our acquisition of the above Certificates we certify that
(a) we understand that the Certificates are not being registered under the Securities Act
of 1933, as amended (the "Act"), or any state securities laws and are being transferred to
us in a transaction that is exempt from the registration requirements of the Act and any
such laws, (b) we have such knowledge and experience in financial and business matters that
we are capable of evaluating the merits and risks of investments in the Certificates, (c)
we have had the opportunity to ask questions of and receive answers from the Depositor
concerning the purchase of the Certificates and all matters relating thereto or any
additional information deemed necessary to our decision to purchase the Certificates, (d)
either (i) we are not an employee benefit plan or arrangement that is subject to the
Employee Retirement Income Security Act of 1974, as amended, or Section 4975 of the
Internal Revenue Code of 1986, as amended, nor are we using the assets of any such plan or
arrangement, (ii) we are providing an Opinion of Counsel which establishes to the
reasonable satisfaction of the Trust Administrator that the purchase and holding of
ERISA-Restricted Certificates by, on behalf of or with "plan assets" of such plan will not
result in a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of
the Code, and will not subject the Depositor, the Trustee, the Trust Administrator, the
Master Servicer or any other Servicer to any obligation in addition to those undertaken in
this Agreement or (iii) if, in the case of an ERISA-Restricted Certificates that have been
the subject of an ERISA-Qualifying Underwriting, we are an insurance company, we are
purchasing such Certificates with funds contained in an "insurance company general account"
(as such term is defined in Section V(e) of Prohibited Transaction Class Exemption 95-60
("PTCE 95-60")) and our purchase and holding of such Certificates are covered under
Sections I and III of PTCE 95-60, (e) we have not, nor has anyone acting on our behalf
offered, transferred, pledged, sold or otherwise disposed of the Certificates, any interest
in the Certificates or any other similar security to, or solicited any offer to buy or
accept a transfer, pledge or other disposition of the Certificates, any interest in the
Certificates or any other similar security from, or otherwise approached or negotiated with
respect to the Certificates, any interest in the Certificates or any other similar security
with, any person in any manner, or made any general solicitation by means of general
advertising or in any other manner, or taken any other action, that would constitute a
distribution of the Certificates under the Act or that would render the disposition of the
Certificates a violation of Section 5 of the Act or require registration pursuant thereto,
nor will act, nor has authorized or will authorize any person to act, in such manner with
respect to the Certificates, (f) we are a "qualified institutional buyer" as that term is
defined in Rule 144A under the Act ("Rule 144A") and have completed either of the forms of
certification to that effect attached hereto as Annex 1 or Annex 2, (g) we are aware that
the sale to us is being made in reliance on Rule 144A, and (i) we are acquiring the
Certificates for our own account or for resale pursuant to Rule 144A and further,
understand that such Certificates may be resold, pledged or transferred only (A) 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 (B) pursuant to
another exemption from registration under the Act.
Very truly yours,
_______________________________
Print Name of Transferor
By: ___________________________
Authorized Officer
EXHIBIT M-3
FORM OF REGULATION S LETTER
EXHIBIT N
FORM OF INVESTOR TRANSFER AFFIDAVIT AND AGREEMENT
STATE OF )
: ss.:
COUNTY OF )
[NAME OF OFFICER], being first duly sworn, deposes and says:
1. That he is [Title of Officer] or [Name of Owner] (record or beneficial
owner (the "Owner") of the Class [AR/AR-L] Certificates (the "Class [AR/AR-L]
Certificates")), a [savings institution] [corporation] duly organized and existing under
the laws of [the State of ] [the United States], on behalf of which he makes
this affidavit and agreement.
2. That the Owner (i) is not and will not be a "disqualified organization"
as of [date of transfer] within the meaning of Section 860E(e)(5) of the Internal Revenue
Code of 1986, as amended (the "Code"), (ii) will endeavor to remain other than a
disqualified organization for so long as it retains its ownership interest in the Class
[AR/AR-L] Certificates, and (iii) is acquiring the Class [AR/AR-L] Certificates for its own
account. A "Permitted Transferee" is any person other than a "disqualified organization."
(For this purpose, a "disqualified organization" means the United States, any state or
political subdivision thereof, any agency or instrumentality of any of the foregoing (other
than an instrumentality all of the activities of which are subject to tax and, except for
the Federal Home Loan Mortgage Corporation, a majority of whose board of directors is not
selected by any such governmental entity) or any foreign government, international
organization or any agency or instrumentality of such foreign government or organization,
any rural electric or telephone cooperative, or any organization (other than certain
farmers' cooperatives) that is generally exempt from federal income tax unless such
organization is subject to the tax on unrelated business taxable income).
3. That the Owner is aware (i) of the tax that would be imposed on transfers
of Class [AR/AR-L] Certificates to disqualified organizations under the Code; (ii) that
such tax would be on the transferor, or, if such transfer is through an agent (which person
includes a broker, nominee or middleman) for a non-Permitted Transferee, on the agent;
(iii) that the person otherwise liable for the tax shall be relieved of liability for the
tax if the transferee furnishes to such person an affidavit that the transferee is a
Permitted Transferee and, at the time of transfer, such person does not have actual
knowledge that the affidavit is false; and (iv) that the Class [AR/AR-L] Certificates may
be "noneconomic residual interests" within the meaning of 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, if a
significant purpose of the transfer was to enable the transferor to impede the assessment
or collection of tax.
4. That the Owner is aware of the tax imposed on a "pass-through entity"
holding Class [AR/AR-L] Certificates if at any time during the taxable year of the
pass-through entity a non-Permitted Transferee is the record holder of an interest in such
entity. (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.)
5. That the Owner is aware that the Trustee will not register the Transfer
of any Class [AR/AR-L] Certificates unless the transferee, or the transferee's agent,
delivers to it an affidavit and agreement, among other things, in substantially the same
form as this affidavit and agreement. The Owner expressly agrees that it will not
consummate any such transfer if it knows or believes that any of the representations
contained in such affidavit and agreement are false.
6. That the Owner has reviewed the restrictions set forth on the face of the
Class [AR/AR-L] Certificates and the provisions of Section 6.02 of the Pooling and
Servicing Agreement under which the Class [AR/AR-L] Certificates were issued. The Owner
expressly agrees to be bound by and to comply with such restrictions and provisions.
7. That the Owner consents to any additional restrictions or arrangements
that shall be deemed necessary upon advice of counsel to constitute a reasonable
arrangement to ensure that the Class [AR/AR-L] Certificates will only be owned, directly or
indirectly, by an Owner that is a Permitted Transferee.
8. That the Owner's Taxpayer Identification Number is ________________.
9. That the Owner is 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, or an estate or trust whose
income from sources without the United States is includable in gross income for United
States federal income tax purposes regardless of its connection with the conduct of a trade
or business within the United States.
10. That no purpose of the Owner relating to the purchase of the Class
[AR/AR-L] Certificate by the Owner is or will be to impede the assessment or collection of
tax.
11. That the Owner has no present knowledge or expectation that it will be
unable to pay any United States taxes owed by it so long as any of the Certificates remain
outstanding.
12. That the Owner has no present knowledge or expectation that it will
become insolvent or subject to a bankruptcy proceeding for so long as any of the
Certificates remain outstanding.
13. That no purpose of the Owner relating to any sale of the Class [AR/AR-L]
Certificate by the Owner will be to impede the assessment or collection of tax.
14. The Owner hereby agrees to cooperate with the Trustee and to take any
action required of it by the Code or Treasury regulations thereunder (whether now or
hereafter promulgated) in order to create or maintain the REMIC status of the Trust Fund.
15. That the Owner is not an employee benefit or other plan subject to the
prohibited transaction provisions of the Employee Retirement Income Security Act of 1974,
as amended ("ERISA"), or Section 4975 of the Internal Revenue Code of 1986, as amended (the
"Code") (a "Plan"), or any other person (including an investment manager, a named fiduciary
or a trustee of any Plan) acting, directly or indirectly, on behalf of or purchasing any
Certificate with "plan assets" of any Plan.
16. The Owner hereby agrees that it will not take any action that could
endanger the REMIC status of the Trust Fund or result in the imposition of tax on the Trust
Fund unless counsel for, or acceptable to, the Trustee has provided an opinion that such
action will not result in the loss of such REMIC status or the imposition of such tax, as
applicable.
17. The Owner has provided financial statements or other financial
information requested by the transferor in connection with the transfer of the Residual
Certificates to permit the transferor to assess the financial capability of the Owner to
pay any such taxes.
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 [Title of Officer] and
its corporate seal to be hereunto attached, attested by its [Assistant] Secretary, this
____ day of ___________.
[NAME OF OWNER]
By: _______________________________
[Name of Officer]
[Title of Officer]
[Corporate Seal]
ATTEST:
__________________________________
[Assistant] Secretary
Personally appeared before me the above-named [Name of Officer], known or
proved to me to be the same person who executed the foregoing instrument and to be the
[Title of Officer] of the Owner, and acknowledged to me that he executed the same as his
free act and deed and the free act and deed of the Owner.
Subscribed and sworn before me this _____ day of _______________________.
__________________________________________
NOTARY PUBLIC
COUNTY OF _______________________________
STATE OF ________________________________
My Commission expires the _____ day of
__________________, 20____.
EXHIBIT O
FORM OF TRANSFER CERTIFICATE
[date]
Credit Suisse First Boston Mortgage Securities Corp.
00 Xxxxxxx Xxxxxx, 0xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxx Xxxx
[_____________________]
[_____________________]
[_____________________]
Re: [_________________________] Mortgage Backed Pass Through Certificates,
Series 200_ ___, Class AR (the "Certificates")
Ladies and Gentlemen:
This letter is delivered to you in connection with the sale by
_________________ (the "Seller") to ____________________________________ (the "Purchaser")
of a _______% Percentage Interest in the above referenced Certificates, pursuant to
Section 6.02 of the Pooling and Servicing Agreement dated as of February 1, 2006, among
Credit Suisse First Boston Mortgage Securities Corp., as depositor, DLJ Mortgage Capital,
Inc., as seller, Select Portfolio Servicing, Inc., as a servicer and as special servicer,
U.S. Bank National Association, as trustee, and Xxxxx Fargo Bank, N.A., as a servicer,
master servicer, back-up servicer and trust administrator (the "Pooling and Servicing
Agreement"). All terms used herein and not otherwise defined shall have the meanings set
forth in the Pooling and Servicing Agreement. The Seller hereby certifies, represents and
warrants to, and covenants with, the Depositor and the Trustee that:
1. No purpose of the Seller relating to sale of the Certificate by the
Seller to the Purchaser is or will be to enable the Seller to impede the assessment or
collection of any tax.
2. The Seller understands that the Purchaser has delivered to the Trustee a
transfer affidavit and agreement in the form attached to the Pooling and Servicing
Agreement as Exhibit N. The Seller does not know or believe that any representation
contained therein is false.
3. The Seller has no actual knowledge that the proposed Transferee is not a
Permitted Transferee.
4. The Seller has no actual knowledge that the Purchaser would be unwilling
or unable to pay taxes due on its share of the taxable income attributable to the
Certificate.
5. The Seller has conducted a reasonable investigation of the financial
condition of the Purchaser and, as a result of the investigation, found that the Purchaser
has historically paid its debts as they came due, and found no significant evidence to
indicate that the Purchaser will not continue to pay its debts as they come due in the
future.
6. The Purchaser has represented to the Seller that, if the Certificate
constitutes a noneconomic residual interest, it (i) understands that as holder of a
noneconomic residual interest it may incur tax liabilities in excess of any cash flows
generated by the interest, and (ii) intends to pay taxes associated with its holding of the
Certificate as they become due.
Very truly yours,
[SELLER]
By: ________________________________
Name:
Title:
EXHIBIT P
FORM OF SPS MORTGAGE LOANS REPORT
DATA AND FORMAT TO BE PROVIDED BY SPS TO THE MASTER SERVICER
(in Excel format)
ALL SPS MORTGAGE LOANS
FIELD FORMAT FIELD
Name* Text
Lien Position * Text/Number
FICO Score* Number
Original Occupancy* Text
Documentation* Text
Purpose* Text
Original Loan Amount* Number
Original Appraisal Value* Number
Original LTV* Number
Original P&I* Number
Original Interest Rate* Number
First Payment Date* MM/DD/YY
Origination Date* MM/DD/YY
Originator* Text
Loan Term* Number
Product Type (adjustable rate or fixed rate)* Text
Property Type* Text
Street Address* Text
City* Text
Zip Code* Text
State* Text
MI Certificate Number* Number
Prepayment Flag Text
Prepayment Expiration Date MM/DD/YY
Loan Number Text
Deal Identifier by Loan Text
Current Loan Amount Number
Current LTV Number
Current Interest Rate Number
Last Interest Payment Date MM/DD/YY
Current P&I Payment Amount Number
Paid Off Code Text
Scheduled Balance Number
Calculation of Retained Yield by Loan Number (if applicable Number
to the transaction)
Reporting of Delinquency Status on Defaulted Mortgage Loans Text
Current Market Value Number
Date of Market Value MM/DD/YY
As-is Value Number
Repaired Value Number
Type of Valuation Text
Foreclosure Flag Text
Bankruptcy Flag Text
Date NOD sent to MI company MM/DD/YY
Foreclosure Start Date (Referral Date) MM/DD/YY
Scheduled Foreclosure Sale Date MM/DD/YY
Foreclosure Actual Sale Date MM/DD/YY
Actual Notice of Intent Date MM/DD/YY
Actual First Legal Date MM/DD/YY
Bankruptcy Chapter Number
Actual Bankruptcy Start Date MM/DD/YY
Actual Payment Plan Start and End Dates MM/DD/YY
List Date MM/DD/YY
List Price Number
Vacancy/Occupancy Status Text
Actual Eviction Start Date MM/DD/YY
Actual Eviction Completion Date MM/DD/YY
Actual REO Start Date MM/DD/YY
Sales Price Number
Actual Closing Date MM/DD/YY
Net Sales Proceeds Number
Mortgage Insurance Claim Filing Date MM/DD/YY
Mortgage Insurance Proceeds Received Number
Date Mortgage Insurance Proceeds Received MM/DD/YY
Collection History
EXHIBIT Q
FORM OF FORECLOSURE SETTLEMENT STATEMENT
REMIC # Ending Interest
Rate:
Original Amount of Loan: Fixed or
Adjustable:
UPB Accrued Int to frcl sale:
Advanced Delinquent Interest:
Date Borrower Paid To: / /
Borrower's Name:
Property Address:
MSP Bank/Category
Note Date: / /
Date of REO: / /
Disposition Date: / /
Amount Date of Valuation Type of Valuation
Market Value AS IS: / /
Repaired
Supplemental Value AS IS: / /
Repaired
REO BPO Value: / /
List Price:
Sales Price:
Proceeds Expenses*
List Price: Servicing
Advances:
Sales Price: 0.00 Payee 70R01
Acquisition:
Broker's Payee 75R60 REO:
Commission:
Bonus Commission: Payee 75R49
Foreclosure:
Lien Purchase/Paid Payee 75R36 Escrow:
Off:
Seller Closing Payee 75R52
Costs: Bankruptcy:
Repair Costs: Discrepancy Amount:
Seller Concessions: Servicing Advance 0.00
Total:
Other Closing Advances Applied After
Costs: Liquidation:
Prior Additional Advances:
Net Proceeds: 0.00 Escrow Advance:
Interest on Advances:
Escrow Balance: Other Advances:
Suspense Balance: Servicing Advance Holdbacks:
Restricted Escrow: Property
Inspection:
Rental Income BPO:
Received:
________________________________
*All amounts will be itemized, and to the extent not itemized, this form will be
accompanied by documentation supporting all amounts claimed on this form.
Insurance Settlement Lender Placed
Received: Insurance:
Other: Utilities:
REO Repair Costs:
Total Liquidation Proceeds: 0.00 Foreclosure Fees:
Total Liquidation Expenses: 0.00 Bankruptcy:
Net Liquidation Proceeds: 0.00 Eviction Costs:
Loan Principal Balance: Transfer Tax:
Realized Gain/Loss Amount: 0.00 Reconveyance Fees:
Additional Proceeds Applied: Demand Fee:
Prior Additional Proceeds: Total Holdbacks: 0.00
Loss Severity: #DIV/0! Other Fees (Including
Fee Code B):
Notes: UPB Accrued Interest to 0.00
XXX:
Advanced Delinquent 0.00
Interest:
Stopped Delinquent
Interest:
Deferred Interest:
Additional Interest:
Total Liquidation
Expenses: 0.00
EXHIBIT R
RELEVANT SERVICING CRITERIA
The assessment of compliance to be delivered by the Master Servicer and the Trust
Administrator shall address, at a minimum, the criteria identified as below as "Applicable
Servicing Criteria" with respect to such party:
Where there are multiple checks for criteria the attesting party will identify in their
management assertion that they are attesting only to the portion of the distribution chain
they are responsible for in the related transaction agreements.
--------------------------------------------------------------------------------
Regulation Servicing Criteria Servicers Master Trust
AB Reference Servicer Administrator
--------------------------------------------------------------------------------
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General Servicing
Considerations
-----------------------------------------------------------------------------
-------------------------------------------------------------------------------
1122(d)(1)(i)Policies and procedures X X X
are instituted to monitor
any performance or other
triggers and events of
default in accordance with
the transaction agreements.
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-------------------------------------------------------------------------------
1122(d)(1)(iiIf any material servicing X X
activities are outsourced
to third parties, policies
and procedures are
instituted to monitor the
third party's performance
and compliance with such
servicing activities.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Any requirements in the
transaction agreements to
maintain a back-up
servicer for the Pool
1122(d)(1)(iiAssets are maintained.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
1122(d)(1)(ivA fidelity bond and errors X X
and omissions policy is in
effect on the party
participating in the
servicing function
throughout the reporting
period in the amount of
coverage required by and
otherwise in accordance
with the terms of the
transaction agreements.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Cash Collection and
Administration
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
1122(d)(2)(i)Payments on pool assets X X X
are deposited into the
appropriate custodial bank
accounts and related bank
clearing accounts no more
than two business days
following receipt, or such
other number of days
specified in the
transaction agreements.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Disbursements made via X X X
wire transfer on behalf of
an obligor or to an
investor are made only by
1122(d)(2)(iiauthorized personnel.
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-------------------------------------------------------------------------------
Advances of funds or X X
guarantees regarding
collections, cash flows or
distributions, and any
interest or other fees
charged for such advances,
are made, reviewed and
approved as specified in
the transaction
1122(d)(2)(iiagreements.
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-------------------------------------------------------------------------------
The related accounts for X X X
the transaction, such as
cash reserve accounts or
accounts established as a
form of over
collateralization, are
separately maintained
(e.g., with respect to
commingling of cash) as
set forth in the
1122(d)(2)(ivtransaction agreements.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Each custodial account is X X X
maintained at a federally
insured depository
institution as set forth
in the transaction
agreements. For purposes
of this criterion,
"federally insured
depository institution"
with respect to a foreign
financial institution
means a foreign financial
institution that meets the
requirements of Rule
13k-1(b)(1) of the
1122(d)(2)(v)Securities Exchange Act.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Unissued checks are X
safeguarded so as to
prevent unauthorized
1122(d)(2)(viaccess.
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-------------------------------------------------------------------------------
1122(d)(2)(viReconciliations are X X X
prepared on a monthly
basis for all asset-backed
securities related bank
accounts, including
custodial accounts and
related bank clearing
accounts. These
reconciliations are (A)
mathematically accurate;
(B) prepared within 30
calendar days after the
bank statement cutoff
date, or such other number
of days specified in the
transaction agreements;
(C) reviewed and approved
by someone other than the
person who prepared the
reconciliation; and (D)
contain explanations for
reconciling items. These
reconciling items are
resolved within 90
calendar days of their
original identification,
or such other number of
days specified in the
transaction agreements.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Investor Remittances and
Reporting
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
1122(d)(3)(i)Reports to investors, X X X
including those to be
filed with the Commission,
are maintained in
accordance with the
transaction agreements and
applicable Commission
requirements.
Specifically, such reports
(A) are prepared in
accordance with timeframes
and other terms set forth
in the transaction
agreements; (B) provide
information calculated in
accordance with the terms
specified in the
transaction agreements;
(C) are filed with the
Commission as required by
its rules and regulations;
and (D) agree with
investors' or the
trustee's records as to
the total unpaid principal
balance and number of Pool
Assets serviced by the
Servicer.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Amounts due to investors X X X
are allocated and remitted
in accordance with
timeframes, distribution
priority and other terms
set forth in the
1122(d)(3)(iitransaction agreements.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Disbursements made to an X X X
investor are posted within
two business days to the
Servicer's investor
records, or such other
number of days specified
in the transaction
1122(d)(3)(iiagreements.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Amounts remitted to X X X
investors per the investor
reports agree with
cancelled checks, or other
form of payment, or
1122(d)(3)(ivcustodial bank statements.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Pool Asset Administration
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
1122(d)(4)(i)Collateral or security on X
pool assets is maintained
as required by the
transaction agreements or
related pool asset
documents.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
1122(d)(4)(iiPool assets and related X
documents are safeguarded
as required by the
transaction agreements
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
1122(d)(4)(iiAny additions, removals or X
substitutions to the asset
pool are made, reviewed
and approved in accordance
with any conditions or
requirements in the
transaction agreements.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
1122(d)(4)(ivPayments on pool assets, X
including any payoffs,
made in accordance with
the related pool asset
documents are posted to
the Servicer's obligor
records maintained no more
than two business days
after receipt, or such
other number of days
specified in the
transaction agreements,
and allocated to
principal, interest or
other items (e.g., escrow)
in accordance with the
related pool asset
documents.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
The Servicer's records X
regarding the pool assets
agree with the Servicer's
records with respect to an
obligor's unpaid principal
1122(d)(4)(v)balance.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Changes with respect to X
the terms or status of an
obligor's pool assets
(e.g., loan modifications
or re-agings) are made,
reviewed and approved by
authorized personnel in
accordance with the
transaction agreements and
related pool asset
1122(d)(4)(vidocuments.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Loss mitigation or X
recovery actions (e.g.,
forbearance plans,
modifications and deeds in
lieu of foreclosure,
foreclosures and
repossessions, as
applicable) are initiated,
conducted and concluded in
accordance with the
timeframes or other
requirements established
by the transaction
1122(d)(4)(viagreements.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
1122(d)(4)(viRecords documenting X
collection efforts are
maintained during the
period a pool asset is
delinquent in accordance
with the transaction
agreements. Such records
are maintained on at least
a monthly basis, or such
other period specified in
the transaction
agreements, and describe
the entity's activities in
monitoring delinquent pool
assets including, for
example, phone calls,
letters and payment
rescheduling plans in
cases where delinquency is
deemed temporary (e.g.,
illness or unemployment).
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
1122(d)(4)(ixAdjustments to interest X
rates or rates of return
for pool assets with
variable rates are
computed based on the
related pool asset
documents.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
1122(d)(4)(x)Regarding any funds held X
in trust for an obligor
(such as escrow accounts):
(A) such funds are
analyzed, in accordance
with the obligor's pool
asset documents, on at
least an annual basis, or
such other period
specified in the
transaction agreements;
(B) interest on such funds
is paid, or credited, to
obligors in accordance
with applicable pool asset
documents and state laws;
and (C) such funds are
returned to the obligor
within 30 calendar days of
full repayment of the
related pool assets, or
such other number of days
specified in the
transaction agreements.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Payments made on behalf of X
an obligor (such as tax or
insurance payments) are
made on or before the
related penalty or
expiration dates, as
indicated on the
appropriate bills or
notices for such payments,
provided that such support
has been received by the
servicer at least 30
calendar days prior to
these dates, or such other
number of days specified
in the transaction
1122(d)(4)(xiagreements.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Any late payment penalties X
in connection with any
payment to be made on
behalf of an obligor are
paid from the Servicer's
funds and not charged to
the obligor, unless the
late payment was due to
the obligor's error or
1122(d)(4)(xiomission.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Disbursements made on X
behalf of an obligor are
posted within two business
days to the obligor's
records maintained by the
servicer, or such other
number of days specified
in the transaction
1122(d)(4)(xiagreements.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Delinquencies, charge-offs X X
and uncollectible accounts
are recognized and
recorded in accordance
with the transaction
1122(d)(4)(xiagreements.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Any external enhancement
or other support,
identified in Item
1114(a)(1) through (3) or
Item 1115 of Regulation
AB, is maintained as set
forth in the transaction
1122(d)(4)(xvagreements.
-------------------------------------------------------------------------------
[NAME OF COMPANY]
Date: _________________________
By:
Name: ________________________________
Title: ________________________________
EXHIBIT S
ADDITIONAL FORM 10-D DISCLOSURE
Item on Form 10-D Party Responsible
Item 1: Distribution and Pool Servicer
Performance Information Trust Administrator
--------------------------------------- Depositor
Any information required by 1121 which
is NOT included on the Monthly
Statement
Item 2: Legal Proceedings (i) All parties to the PSA (as to
themselves), (ii) the Depositor and
per Item 1117 of Reg AB servicer as to the issuing entity,
(iii) the Depositor as to the
sponsor, any 1106(b) originator, any
1100(d)(1) party
Item 3: Sale of Securities and Use of Depositor
Proceeds
Item 4: Defaults Upon Senior Trust Administrator
Securities
Item 5: Submission of Matters to a Trust Administrator
Vote of Security Holders
Item 6: Significant Obligors of Pool Depositor/Servicer
Assets
Item 7: Significant Enhancement Depositor/Servicer
Provider Information
Item 8: Other Information Any party responsible for disclosure
items on Form 8-K
Item 9: Exhibits Trust Administrator
Depositor
EXHIBIT T
FORM OF MONTHLY STATEMENT TO CERTIFICATEHOLDERS
(i) With respect to each Class of Certificates which are not Notional Amount Certificates
and, unless otherwise stated, the related Distribution Date,
(a) the Initial Class Principal Balance of such Class as of the Cut-off Date;
(b) the Class Principal Balance of such Class before giving effect to the
distribution of principal and interest;
(c) the amount of the related distribution on such Class allocable to interest;
(d) the amount of the related distribution on such Class allocable to principal;
(e) the sum of the principal and interest payable to such Class;
(f) the Realized Loss allocable to such Class;
(g) the Class Unpaid Interest Amount allocable to such Class;
(h) the Class Principal Balance of such Class after giving effect to the
distribution of principal and interest;
(i) the Pass-Through Rate for such Class;
(j) any Basis Risk Shortfall allocable to such Class, if such amount is greater
than zero;
(k) any shortfall in principal allocable to such Class, if such amount is greater
than zero;
(ii) with respect to each Class of Certificates which are Notional Amount Certificates
and, unless otherwise stated, the related Distribution Date,
(a) the Notional Amount of such Class as of the Cut-off Date;
(b) the Notional Amount of such Class before giving effect to the distribution of
interest;
(c) the amount of the related distribution on such Class allocable to interest;
(d) the amount of the related distribution on such Class allocable to principal;
(e) the sum of the principal and interest payable to such class;
(f) the Realized Loss allocable to such Class;
(g) the Class Unpaid Interest Amount allocable to such Class;
(h) the Notional Amount of such Class after giving effect to the distribution of
interest;
(i) the Pass-Through Rate for such Class;
(j) any Basis Risk Shortfall allocable to such Class, if such amount is greater
than zero;
(iii) with respect to a $1000 factor of the Initial Class Principal Balance of each Class
of Certificates which are not Notional Amount Certificates and the related
Distribution Date,
(a) the CUSIP number assigned to such Class;
(b) the Class Principal Balance of such Class factor prior to giving effect to the
distribution of principal and interest;
(c) the amount of the related distribution allocable to interest on such Class
factor;
(d) the amount of the related distribution allocable to principal on such Class
factor;
(e) the sum of the principal and interest payable to such Class factor;
(f) the Class Principal Balance of such Class factor after giving effect to the
distribution of principal and interest;
(iv) with respect to a $1000 factor of the Initial Class Principal Balance of each Class
of Certificates which are Notional Amount Certificates and the related Distribution
Date,
(a) the CUSIP number assigned to such Class;
(b) the Notional Amount of such Class factor prior to giving effect to the
distribution of interest;
(c) the amount of the related distribution allocable to interest on such Class
factor;
(d) the amount of the related distribution allocable to principal on such Class
factor;
(e) the sum of the principal and interest payable to such Class factor;
(f) the Notional Amount of such Class factor after giving effect to the
distribution of interest;
(v) with respect to each Loan Group, in the aggregate, and, unless otherwise stated, the
related Distribution Date,
(a) the Scheduled Payment of principal for such Loan Group;
(b) the amount of Principal Prepayments allocable to such Loan Group;
(c) the amount of principal allocable to such Loan Group as a result of repurchased
Mortgage Loans in such Loan Group;
(d) the Substitution Adjustment Amount allocable to such Loan Group;
(e) the amount of Net Liquidation Proceeds allocable to such Loan Group;
(f) the amount of Insurance Proceeds allocable to such Loan Group;
(g) the amount of any other distributions allocable to principal for such Loan
Group;
(h) the number of Mortgage Loans in such Loan Group as of the first day of the
related Collection Period;
(i) the aggregate Stated Principal Balance of the Mortgage Loans in such Loan
Group as of the first day of the related Collection Period;
(j) the number of Mortgage Loans in such Loan Group as of the last day of the
related Collection Period;
(k) the aggregate Stated Principal Balance of the Mortgage Loans in such Loan
Group as of the last day of the related Collection Period;
(l) the Master Servicing Fee, by Loan Group;
(m) the sum of the Servicing Fee, the Mortgage Guaranty Insurance Policy fees, if
applicable and the [RMIC/TGIC/MGIC] PMI fees, if applicable, for such Loan
Group;
(n) the Trust Administrator Fee applicable to such Loan Group;
(o) the amount of current Advances allocable to such Loan Group;
(p) the amount of outstanding Advances allocable to such Loan Group;
(q) the number and aggregate principal amounts of Mortgage Loans delinquent (1) 31
to 60 days, (2) 61 to 90 days and (3) 91 days or more, for such Loan Group,
including delinquent bankrupt Mortgage Loans but excluding foreclosure and REO
Mortgage Loans;
(r) the number and aggregate principal amounts of Mortgage Loans that are currently
in bankruptcy, but not delinquent, for such Loan Group;
(s) the number and aggregate principal amounts of Mortgage Loans that are in
foreclosure for such Loan Group;
(t) the Rolling Three Month Delinquency Rate or Rolling Six Month Delinquency Rate
for such Loan Group;
(u) the number and aggregate principal amount of any REO properties as of the close
of business on the Determination Date preceding such Distribution Date for such
Loan Group;
(v) current Realized Losses allocable to such Loan Group;
(w) cumulative Realized Losses allocable to such Loan Group;
(x) the weighted average term to maturity of the Mortgage Loans in such Loan
Group as of the close of business on the last day of the calendar month
preceding the related Distribution Date;
(y) the number and principal amount of claims submitted under the Mortgage Guaranty
Insurance Policy, as applicable;
(z) the number and principal amount of claims paid under the [RMIC/TGIC/MGIC] PMI
Policy, as applicable;
(aa) the number of Mortgage Loans in such Loan Group that have Assigned Prepayment
Premiums and for which prepayments were made during the related Collection
Period, as applicable;
(bb) the aggregate principal balance of Mortgage Loans in such Loan Group that have
Assigned Prepayment Premiums and for which prepayments were made during the
related Collection Period, as applicable;
(cc) the aggregate amount of Assigned Prepayment Premiums collected for such Loan
Group during the related Collection Period, as applicable;
(dd) current Realized Losses allocated to each Mortgage Loan in such Loan Group that
has previously been allocated a Realized Loss;
(ee) cumulative Realized Losses allocated to each Mortgage Loan in such Loan
Group that has previously been allocated a Realized Loss;
(ff) current Recoveries allocable to such Loan Group;
(gg) cumulative Recoveries allocable to such Loan Group;
(hh) current aggregate Stated Principal Balance of Qualified Substitute Mortgage
Loans substituted for Deleted Mortgage Loans in such Loan Group;
(ii) cumulative aggregate Stated Principal Balance of Qualified Substitute Mortgage
Loans substituted for Deleted Mortgage Loans in such Loan Group;
(jj) with respect to all of the Mortgage Loans, in the aggregate, and, unless
otherwise stated, the related Distribution Date, for each Servicer that is
servicing any of such Mortgage Loans, the aggregate Stated Principal Balance of
Mortgage Loans being serviced by such Servicer as of such Distribution Date; and
(kk) [reserved];
(vii) with respect to each overcollateralized Group of Certificates and, unless otherwise
stated, the related Distribution Date,
(a) the Targeted Overcollateralization Amount for such Group;
(b) the Overcollateralization Amount for such Group;
(c) the Overcollateralization Deficiency for such Group;
(d) the Overcollateralization Release Amount for such Group;
(e) the Monthly Excess Interest for such Group;
(f) the amount of any payment to the [Class __-X] Certificates related to such
Group;
(g) if applicable, the Excess Interest Amount from an unrelated Group of
Certificates that provides additional credit enhancement to the related
overcollateralized Group of Certificates.
EXHIBIT U
FORM 8-K DISCLOSURE INFORMATION
Item on Form 8-K Party Responsible
Item 1.01- Entry into a Material All parties (as to themselves)
Definitive Agreement
Item 1.02- Termination of a Material All parties (as to themselves)
Definitive Agreement
Item 1.03- Bankruptcy or Receivership All parties (as to themselves)
Item 2.04- Triggering Events that Depositor
Accelerate or Increase a Direct
Financial Obligation or an
Obligation under an Off-Balance
Sheet Arrangement
Item 3.03- Material Modification to Trust Administrator
Rights of Security Holders
Item 5.03- Amendments of Articles of Depositor
Incorporation or Bylaws; Change of
Fiscal Year
Item 6.01- ABS Informational and Depositor
Computational Material
Item 6.02- Change of Servicer or Servicer, Trust Administrator
Trust Administrator
Item 6.03- Change in Credit Depositor/Trust Administrator
Enhancement or External Support
Item 6.04- Failure to Make a Trust Administrator
Required Distribution
Item 6.05- Securities Act Updating Depositor
Disclosure
Item 7.01- Reg FD Disclosure Depositor
Item 8.01 Depositor
Item 9.01 Depositor
--------------------------------------------------------------------------------------------
EXHIBIT V
FORM OF ANNUAL CERTIFICATION
FORM OF ANNUAL CERTIFICATION
Re: The Pooling And Servicing Agreement, dated as of February 1, 2006 (the
"Agreement"), by and among by and among Credit Suisse First Boston Mortgage
Securities Corp., as depositor (the "Depositor"), DLJ Mortgage Capital, Inc.
("DLJMC"), a Delaware corporation, as seller ("Seller"), Xxxxx Fargo Bank, N.A.
("Xxxxx Fargo"), a national banking association, in its capacity as a servicer (a
"Servicer"), as master servicer (the "Master Servicer") and as trust administrator
(the "Trust Administrator"), Select Portfolio Servicing, Inc. ("SPS"), a Utah
corporation, in its capacity as a servicer (a "Servicer") and in its capacity as
special servicer (the "Special Servicer"), and U.S. Bank National Association, a
national banking association, as trustee (the "Trustee").
I, _______________________, the ________________________ of [NAME OF COMPANY] (the
"Company"), certify to the Depositor, the Master Servicer, the Trust Administrator,
and their officers, with the knowledge and intent that they will rely upon this
certification, that:
(1) I have reviewed (i) the servicer compliance statement of the Company provided
in accordance with Section 14.05 of the Pooling and Servicing Agreement (the "Compliance
Statement"), (ii) the report on assessment of the Company's compliance with the servicing
criteria provided in accordance with Section 14.06 of the Pooling and Servicing Agreement,
(iii) the registered public accounting firm's attestation report provided in accordance
with Section 14.07 of the Pooling and Servicing Agreement (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 Trust Administrator pursuant to the Agreement (collectively, the "Company
Servicing Information");
(2) 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;
(3) 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 Trust Administrator;
(4) I am responsible for reviewing the activities performed by the Company as
services 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
(5) The Compliance Statement required to be delivered by the Company pursuant to
the Agreement, and the Servicing Assessment and Attestation Report required to be provided
by the Company and by any Subservicer or Subcontractor pursuant to the Agreement, have been
provided to Trust Administrator. Any material instances of noncompliance described in such
reports have been disclosed to Trust Administrator. Any material instance of noncompliance
with the Servicing Criteria has been disclosed in such reports.
By:_____________________________
Name:
Title
Date:
EXHIBIT W
ADDITIONAL DISCLOSURE NOTIFICATION
Xxxxx Fargo Bank, N.A.
Xxx Xxxxxxxxx Xxxx
Xxxxxxxx, Xxxxxxxx 00000
Fax: (000) 000-0000
Email: xxx.xxx.xxxxxxxxxxxxx@xxxxxxxxxx.xxx
Attn: Corporate Trust Services- CSMC Mortgage Backed Trust Series 2006-2, CSMC Mortgage
Pass-Through Certificates, Series 2006-2-SEC REPORT PROCESSING
RE: **Additional Form [10-D][10-K][8-K] Disclosure** Required
Ladies and Gentlemen:
In accordance with Article XIV of the Pooling and Servicing Agreement, dated as of
February 1, 2006, by and among Credit Suisse First Boston Mortgage Securities Corp., as
depositor (the "Depositor"), DLJ Mortgage Capital, Inc. ("DLJMC"), a Delaware corporation,
as seller ("Seller"), Xxxxx Fargo Bank, N.A. ("Xxxxx Fargo"), a national banking
association, in its capacity as a servicer (a "Servicer"), as master servicer (the "Master
Servicer") and as trust administrator (the "Trust Administrator"), Select Portfolio
Servicing, Inc. ("SPS"), a Utah corporation, in its capacity as a servicer (a "Servicer")
and in its capacity as special servicer (the "Special Servicer"), and U.S. Bank National
Association, a national banking association, as trustee (the "Trustee"), the undersigned,
as [ ], hereby notifies you that certain events have come to our attention that
[will] [may] need to be disclosed on Form [10-D] [ 10-K] [8-K].
Description of Additional Form [10-D][10-K][8-K] Disclosure:
List of any Attachments hereto to be included in the Additional Form [10-D][ 10-K][8-K]
Disclosure:
Any inquiries related to this notification should be directed to [
], phone number: [ ]; email address: [ ].
[NAME OF PARTY],
as [role]
By: _____________________________
Name:
Title:
EXHIBIT Y
ADDITIONAL FORM 10-K DISCLOSURE
Item on Form 10-K Party Responsible
Item 1B: Unresolved Staff Comments Depositor
----------------------------------------
Item 9B: Other Information Any party responsible for disclosure
items on Form 8-K
Item 15: Exhibits, Financial Statement Trust Administrator
Schedules Depositor
Additional Item: (i) All parties to the PSA (as to
themselves), (ii) the Trust
Disclosure per Item 1117 of Reg AB Administrator and Master Servicer as
to the issuing entity, (iii) the
Depositor as to the sponsor, any
1106(b) originator, any 1100(d)(1)
party
Additional Item: (i) All parties to the Pooling and
Servicing Agreement as to themselves,
Disclosure per Item 1119 of Reg AB (ii) the Depositor as to he sponsor,
originator, significant obligor,
enhancement or support provider
Additional Item: Depositor/ Servicer
Disclosure per Item 1112(b) of Reg AB
Additional Item: Depositor
Disclosure per Items 1114(b) and
1115(b) of
Reg AB
EXHIBIT Z
FORM OF CERTIFICATION
REGARDING SUBSTITUTION OF DEFECTIVE MORTGAGE LOANS
OFFICER'S CERTIFICATE OF DLJ MORTGAGE CAPITAL, INC.
[__________], 2005
I, ____________, hereby certify that I am the duly authorized officer of DLJ Mortgage
Capital, Inc., a Delaware corporation ("DLJMC"), and further certify that each of the
Mortgage Loans substituted by DLJMC on _______________, 20[___] were in violation of the
terms of the Mortgages related thereto.
Capitalized terms used but not defined herein have the meanings ascribed to them in
the Pooling and Servicing Agreement dated as of February 1, 2006, among Credit Suisse First
Boston Mortgage Securities Corp., as depositor, DLJ Mortgage Capital, Inc., as seller,
Select Portfolio Servicing, Inc., as a servicer and as special servicer, U.S. Bank National
Association, as trustee, and Xxxxx Fargo Bank, N.A., as a servicer, master servicer,
back-up servicer and trust administrator (the "Pooling and Servicing Agreement").
DLJ MORTGAGE CAPITAL, INC.
____________________________________
Name:
Title:
SCHEDULE I
MORTGAGE LOAN SCHEDULE
(Provided Upon Request)
SCHEDULE IIA
Representations and Warranties of Seller - DLJ Mortgage Capital, Inc.
DLJMC Mortgage Capital, Inc. ("DLJ"), in its capacity as Seller, hereby makes
the representations and warranties set forth in this Schedule IIA to the Depositor, the
Trustee and the Trust Administrator, as of the Closing Date, or if so specified herein, as
of the Cut off Date or such other date as may be specified. Capitalized terms used but not
defined herein shall have the meanings assigned thereto in the Pooling and Servicing
Agreement dated as of February 1, 2006, among Credit Suisse First Boston Mortgage
Securities Corp., as depositor, DLJ Mortgage Capital, Inc., as seller, Select Portfolio
Servicing, Inc., as a servicer and as special servicer, U.S. Bank National Association, as
trustee, and Xxxxx Fargo Bank, N.A., as a servicer, master servicer, back-up servicer and
trust administrator (the "Agreement"). DLJMC is a corporation duly organized, validly
existing and in good standing under the laws of the state of its incorporation;
(i) DLJMC has full corporate power to own its property, to carry on its
business as presently conducted and to enter into and perform its obligations under
this Agreement;
(ii) the execution and delivery by DLJMC of this Agreement have been duly
authorized by all necessary corporate action on the part of DLJMC; and neither the
execution and delivery of this Agreement, nor the consummation of the transactions
herein contemplated hereby, nor compliance with the provisions hereof, will conflict
with or result in a breach of, or constitute a default under, any of the provisions
of any law, governmental rule, regulation, judgment, decree or order binding on DLJMC
or its properties or the certificate of incorporation or by-laws of DLJMC, except
those conflicts, breaches or defaults which would not reasonably be expected to have
a material adverse effect on DLJMC's ability to enter into this Agreement and to
consummate the transactions contemplated hereby;
(iii) the execution, delivery and performance by DLJMC of this Agreement and
the consummation of the transactions contemplated hereby do not require the consent
or approval of, the giving of notice to, the registration with, or the taking of any
other action in respect of, any state, federal or other governmental authority or
agency, except those consents, approvals, notices, registrations or other actions as
have already been obtained, given or made and, in connection with the recordation of
the Mortgages, powers of attorney or assignments of Mortgages not yet completed;
(iv) this Agreement has been duly executed and delivered by DLJMC and,
assuming due authorization, execution and delivery by the Trustee, the Trust
Administrator, the Master Servicer, the Servicers, the Special Servicer and the
Depositor, constitutes a valid and binding obligation of DLJMC enforceable against it
in accordance with its terms (subject to applicable bankruptcy and insolvency laws
and other similar laws affecting the enforcement of the rights of creditors
generally); and
(v) to the knowledge of DLJMC, there are no actions, litigation, suits or
proceedings pending or threatened against DLJMC before or by any court,
administrative agency, arbitrator or governmental body (i) with respect to any of the
transactions contemplated by this Agreement or (ii) with respect to any other matter
which in the judgment of DLJMC if determined adversely to DLJMC would reasonably be
expected to materially and adversely affect DLJMC's ability to perform its
obligations under this Agreement; and DLJMC is not in default with respect to any
order of any court, administrative agency, arbitrator or governmental body so as to
materially and adversely affect the transactions contemplated by this Agreement.
SCHEDULE IIB
Representations and Warranties of Master Servicer - Xxxxx Fargo Bank, X.X.
Xxxxx Fargo Bank, N.A. ("Xxxxx Fargo"), in its capacity as Master Servicer,
hereby makes the representations and warranties set forth in this Schedule IIB to the
Depositor, the Trust Administrator and the Trustee, as of the Closing Date, or if so
specified herein, as of the Cut-off Date or such other date as may be specified.
(i) Xxxxx Fargo is a national banking association duly formed, validly
existing and in good standing and is qualified under the laws of each state where
required by applicable law or is otherwise exempt under applicable law from such
qualification.
(ii) Xxxxx Fargo has all requisite organizational power, authority and
capacity to enter into the Agreement and to perform the obligations required of it
thereunder. The Agreement (assuming the due authorization and execution of the
Agreement by the other parties thereto) constitutes a valid and legally binding
agreement of Xxxxx Fargo enforceable in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, moratorium, reorganization
and similar laws, and by equitable principles affecting the enforceability of the
rights of creditors.
(iii) None of the execution and delivery of the Agreement, the consummation of
any other transaction contemplated therein, or the fulfillment of or compliance with
the terms of the Agreement, will result in the breach of, or constitute a default
under, any term or provision of the organizational documents of Xxxxx Fargo or
conflict with, result in a material breach, violation or acceleration of or
constitute a material default under, the terms of any indenture or other agreement or
instrument to which Xxxxx Fargo is a party or by which it is bound, or any statute,
order, judgment, or regulation applicable to Xxxxx Fargo of any court, regulatory
body, administrative agency or governmental body having jurisdiction over Xxxxx Fargo.
(iv) There is no action, suit, proceeding or investigation pending, or to
Xxxxx Fargo's knowledge threatened, against Xxxxx Fargo before any court,
administrative agency or other tribunal (a) asserting the invalidity of the
Agreement, (b) seeking to prevent the consummation of any of the transactions
contemplated thereby or (c) which might materially and adversely affect the
performance by Xxxxx Fargo of its obligations under, or the validity or
enforceability of, the Agreement.
(v) No consent, approval, authorization or order of any court, regulatory
body or governmental agency or court is required, under state or federal law prior to
the execution, delivery and performance by Xxxxx Fargo of the Agreement or the
consummation of the transactions contemplated by the Agreement.
SCHEDULE IIC
Representations and Warranties of Servicer and Special Servicer - Select Portfolio
Servicing, Inc.
Select Portfolio Servicing, Inc. ("SPS"), in its capacities as Servicer and
Special Servicer, hereby makes the representations and warranties set forth in this
Schedule IIC to the Depositor, the Trustee, the Trust Administrator and the Master
Servicer, as of the Closing Date, or if so specified herein, as of the Cut-off Date or such
other date as may be specified.
(i) SPS is a corporation duly formed, validly existing and in good standing
under the laws of the jurisdiction of its incorporation and is qualified under the
laws of each state where required by applicable law or is otherwise exempt under
applicable law from such qualification.
(ii) SPS has all requisite corporate power, authority and capacity to enter
into the Agreement and to perform the obligations required of it thereunder. The
Agreement (assuming the due authorization and execution of the Agreement by the other
parties thereto) constitutes a valid and legally binding agreement of SPS enforceable
in accordance with its terms, except as such enforceability may be limited by
bankruptcy, insolvency, moratorium, reorganization and similar laws, and by equitable
principles affecting the enforceability of the rights of creditors.
(iii) None of the execution and delivery of the Agreement, the consummation of
any other transaction contemplated therein, or the fulfillment of or compliance with
the terms of the Agreement, will result in the breach of, or constitute a default
under, any term or provision of the organizational documents of SPS or conflict with,
result in a material breach, violation or acceleration of or constitute a material
default under, the terms of any indenture or other agreement or instrument to which
SPS is a party or by which it is bound, or any statute, order, judgment, or
regulation applicable to SPS of any court, regulatory body, administrative agency or
governmental body having jurisdiction over SPS.
(iv) There is no action, suit, proceeding or investigation pending, or to
SPS's knowledge threatened, against SPS before any court, administrative agency or
other tribunal (a) asserting the invalidity of the Agreement, (b) seeking to prevent
the consummation of any of the transactions contemplated thereby or (c) which might
reasonably be expected to materially and adversely affect the performance by SPS of
its obligations under, or the validity or enforceability of, the Agreement.
(v) No consent, approval, authorization or order of any court, regulatory
body or governmental agency or court is required, under state or federal law prior to
the execution, delivery and performance by SPS of the Agreement or the consummation
of the transactions contemplated by the Agreement.
(vi) With respect to each SPS Serviced Mortgage Loan and to the extent SPS has
serviced any of the SPS Serviced Mortgage Loans prior to the date of the Agreement,
SPS has fully furnished, in accordance with the Fair Credit Reporting Act and its
implementing regulations, accurate and complete information (e.g., favorable and
unfavorable) on its borrower credit files to Equifax, Experian and Trans Union Credit
Information Company, on a monthly basis.
SCHEDULE IID
Representations and Warranties of Servicer - Xxxxx Fargo Bank, X.X.
Xxxxx Fargo Bank, N.A. ("Xxxxx Fargo"), in its capacity as Servicer, hereby
makes the representations and warranties set forth in this Schedule IID to the Depositor,
the Trustee and the Trust Administrator, as of the Closing Date, or if so specified herein,
as of the Cut-off Date or such other date as may be specified.
(i) Xxxxx Fargo is a national banking association duly organized and in good
standing under the laws of the United States and is qualified under the laws of each
state where required by applicable law or is otherwise exempt under applicable law
from such qualification.
(ii) Xxxxx Fargo has all requisite corporate power, authority and capacity to
enter into the Agreement and to perform the obligations required of it thereunder.
The Agreement (assuming the due authorization and execution of the Agreement by the
other parties thereto) constitutes a valid and legally binding agreement of Xxxxx
Fargo enforceable in accordance with its terms, except as such enforceability may be
limited by liquidation, conservatorship and similar laws administered by the FDIC
affecting the contract obligations of insured banks, and by equitable principles
affecting the enforceability of the rights of creditors.
(iii) None of the execution and delivery of the Agreement, the consummation of
any other transaction contemplated therein, or the fulfillment of or compliance with
the terms of the Agreement, will result in the breach of, or constitute a default
under, any term or provision of the organizational documents of Xxxxx Fargo or
conflict with, result in a material breach, violation or acceleration of or
constitute a material default under, the terms of any indenture or other agreement or
instrument to which Xxxxx Fargo is a party or by which it is bound, or any statute,
order, judgment, or regulation applicable to Xxxxx Fargo of any court, regulatory
body, administrative agency or governmental body having jurisdiction over Xxxxx Fargo.
(iv) There is no action, suit, proceeding or investigation pending, or to
Xxxxx Fargo's knowledge threatened, against Xxxxx Fargo before any court,
administrative agency or other tribunal (a) asserting the invalidity of the
Agreement, (b) seeking to prevent the consummation of any of the transactions
contemplated thereby or (c) which might materially and adversely affect the
performance by Xxxxx Fargo of its obligations under, or the validity or
enforceability of, the Agreement.
(v) No consent, approval, authorization or order of any court, regulatory
body or governmental agency or court is required, under state or federal law prior to
the execution, delivery and performance by Xxxxx Fargo of the Agreement or the
consummation of the transactions contemplated by the Agreement.
SCHEDULE III
Representations and Warranties of DLJMC - Mortgage Loans
DLJMC, in its capacity as Seller, hereby makes the representations and
warranties set forth in this Schedule III to the Depositor, the Trustee and the Trust
Administrator, as of the Closing Date, or if so specified herein, as of the Cut off Date or
such other date as may be specified, with respect to the Mortgage Loans identified on
Schedule I hereto, except as specified herein.
(i) The information set forth in Schedule I, with respect to the Mortgage
Loans, is complete, true and correct in all material respects;
(ii) [Reserved];
(iii) All payments due prior to the Cut-off Date for such Mortgage Loan have been
made as of the Closing Date, the Mortgage Loan is not 30 days or more delinquent in payment;
there are no material defaults under the terms of the Mortgage Loan;
(iv) 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 escrow funds have been established in an amount sufficient
to pay for every such escrowed item which remains unpaid and which has been assessed
but is not yet due and payable;
(v) The terms of the Mortgage Note and the Mortgage have not been impaired,
waived, altered or modified in any respect, except by written instruments which have
been recorded or sent for recording to the extent any such recordation is required by
law, or, necessary to protect the interest of the Depositor. No other instrument of
waiver, alteration or modification has been executed, and no Mortgagor has been
released, in whole or in part, from the terms thereof except in connection with an
assumption agreement and which assumption agreement is part of the Mortgage File and
the terms of which are reflected in Schedule IA; the substance of any such waiver,
alteration or modification has been approved by the issuer of any related Mortgage
Guaranty Insurance Policy and title insurance policy, to the extent required by the
related policies;
(vi) The Mortgage Note and the Mortgage are 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 the Mortgage Note or
Mortgage unenforceable, in whole or in part, or subject to any right of rescission,
set-off, counterclaim or defense, including the defense of usury, and no such right
of rescission, set-off, counterclaim or defense has been asserted with respect
thereto;
(vii) All buildings or other customarily insured improvements upon the
Mortgaged Property are insured by an insurer acceptable under the FNMA Guides,
against loss by fire, hazards of extended coverage and such other hazards as are
provided for in the FNMA Guides or by FHLMC, as well as all additional requirements
set forth in Section 4.10 of this Agreement. All such standard hazard policies are in
full force and effect and on the date of origination contained a standard mortgagee
clause naming DLJMC and its successors in interest and assigns as loss payee and such
clause is still in effect and all premiums due thereon have been paid. If required
by the Flood Disaster Protection Act of 1973, as amended, the Mortgage Loan is
covered by a flood insurance policy meeting the requirements of the current
guidelines of the Federal Insurance Administration which policy conforms to FNMA and
FHLMC requirements, as well as all additional requirements set forth in Section 4.10
of this Agreement. Such policy was issued by an insurer acceptable under FNMA or
FHLMC guidelines. The Mortgage obligates the Mortgagor thereunder to maintain all
such insurance at the Mortgagor's cost and expense, and on the Mortgagor's failure to
do so, authorizes the holder of the Mortgage to maintain such insurance at the
Mortgagor's cost and expense and to seek reimbursement therefor from the Mortgagor;
(viii) Each Mortgage Loan at the time it was made complied in all material
respects with all applicable local, state and federal laws, including, without
limitation, usury, equal credit opportunity, disclosure, recording and all applicable
predatory and abusive lending laws;
(ix) The related Mortgage is a valid, subsisting, enforceable and perfected
first lien on the Mortgaged Property, including for Mortgage Loans that are not
Cooperative Loans, all buildings on the Mortgaged Property and all installations and
mechanical, electrical, plumbing, heating and air conditioning systems affixed to
such buildings, and all additions, alterations and replacements made at any time with
respect to the foregoing securing the Mortgage Note's original principal balance.
The Mortgage and the Mortgage Note do not contain any evidence of any security
interest or other interest or right thereto. Such lien is free and clear of all
adverse claims, liens and encumbrances having priority over the first lien, as
applicable, of the Mortgage subject only to (1) the lien of non-delinquent current
real property taxes and assessments not yet due and payable, (2) covenants,
conditions and restrictions, rights of way, easements and other matters of the public
record as of the date of recording which are acceptable to mortgage lending
institutions generally and either (A) which are 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 as set forth in such
appraisal, and (3) 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 Seller has the full right to sell
and assign the same to the Depositor;
(x) The Mortgage Note and the related Mortgage are original and genuine and
each is the legal, valid and binding obligation of the maker thereof, enforceable in
all respects in accordance with its terms subject to bankruptcy, insolvency,
moratorium, reorganization and other laws of general application affecting the rights
of creditors and by general equitable principles;
(xi) DLJMC or its affiliate is the sole owner of record and holder of the
Mortgage Loan and the indebtedness evidenced by the Mortgage Note. Immediately prior
to the transfer and assignment to the Depositor on the Closing Date, the Mortgage
Loan, including the Mortgage Note and the Mortgage, were not subject to an assignment
or pledge, and DLJMC had good and marketable title to and was the sole owner thereof
and had full right to transfer and sell the Mortgage Loan to the Depositor free and
clear of any encumbrance, equity, lien, pledge, charge, claim or security interest
and has the full right and authority subject to no interest or participation of, or
agreement with, any other party, to sell and assign the Mortgage Loan and following
the sale of the Mortgage Loan, the Depositor will own such Mortgage Loan free and
clear of any encumbrance, equity, participation interest, lien, pledge, charge, claim
or security interest;
(xii) 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 to the lien of the related Mortgage;
(xiii) All improvements subject to the Mortgage which were considered in
determining the appraised value of the Mortgaged Property lie wholly within the
boundaries and building restriction lines of the Mortgaged Property (and wholly
within the project with respect to a condominium unit) except for de minimis
encroachments permitted by the FNMA Guide and which have been noted on the appraisal
or the title policy affirmatively insures against loss or damage by reason of any
violation, variation or encroachment adverse circumstances which is either disclosed
or would have been disclosed by an accurate survey, and no improvements on adjoining
properties encroach upon the Mortgaged Property except those which are insured
against by the title insurance policy referred to in clause (v) above or are
acceptable under FNMA or FHLMC guidelines and all improvements on the property comply
with all applicable zoning and subdivision laws and ordinances;
(xiv) The Mortgaged Property is not subject to any material damage by waste,
fire, earthquake, windstorm, flood or other casualty. At origination of the Mortgage
Loan there was, and there currently is, no proceeding pending for the total or
partial condemnation of the Mortgaged Property;
(xv) Each Mortgage Loan has been serviced in all material respects in
compliance with accepted servicing practices;
(xvi) With respect to each Cooperative Loan, the related Mortgage is a valid,
enforceable and subsisting first security interest on the related Cooperative Shares
securing the related Mortgage Note, subject only to (a) liens of the Cooperative
Property for unpaid assessments representing the Mortgagor's pro rata share of the
Cooperative Property's payments for its blanket mortgage, current and future real
property taxes, insurance premiums, maintenance fees and other assessments to which
like collateral is commonly subject and (b) other matters to which like collateral is
commonly subject which do not materially interfere with the benefits of the security
intended to be provided by the Security Agreement. There are no liens against or
security interest in the Cooperative Shares relating to each Cooperative Loan (except
for unpaid maintenance, assessments and other amounts owed to the related Cooperative
Property which individually or in the aggregate will not have a material adverse
effect on such Cooperative Loan), which have priority over DLJMC's security interest
in such Cooperative Shares;
(xvii) The Mortgage Loan complies with all terms, conditions and
requirements of the originator's underwriting standards in effect at the time of
origination of such Mortgage Loan;
(xviii) Each Mortgage Loan constitutes a qualified mortgage under
Section 860G(a)(3)(A) of the Code and Treasury Regulations Section 1.860G-2(a)(1);
(xix) With respect to each Mortgage Loan sold by any Seller, to the knowledge
of DLJMC, (i) no borrower obtained a prepaid single-premium credit insurance policy
in connection with the origination of a Mortgage Loan, (ii) the related Servicer of each such
Mortgage Loan has fully furnished, in accordance with the Fair Credit Reporting Act
and its implementing regulations, accurate and complete information on its borrower
credit files to Equifax, Experian and Trans Union Credit Information Company, on a
monthly basis; (iii) no such Mortgage Loan will impose a Prepayment Penalty for a term
in excess of five years; and (iv) with respect to any Mortgage Loans that are on
manufactured housing, such housing will be the principal residence of the borrower upon
origination of such mortgage loan;
(xx) DLJMC has delivered or caused to be delivered to the Trustee or the
Custodian on behalf of the Trustee the original Mortgage bearing evidence that such
instruments have been recorded in the appropriate jurisdiction where the Mortgaged
Property is located as determined by DLJMC (or in lieu of the original of the
Mortgage or the assignment thereof, a duplicate or conformed copy of the Mortgage or
the instrument of assignment, if any, together with a certificate of receipt from
DLJMC or the settlement agent who handled the closing of the Mortgage Loan,
certifying that such copy or copies represent true and correct copies represent true
and correct copy(ies) of the originals) and that such original(s) have been or are
currently submitted to be recorded in the appropriate governmental recording office
of the jurisdiction where the Mortgaged Property is located or a certification or
receipt of the recording authority evidencing the same;
(xxi) The Mortgage File contains each of the documents specified in
Section 2.01(b) of this Agreement;
(xxii) No Mortgage Loan sold by the Seller secured by a Mortgaged Property
located in the State of Georgia was originated on or after October 1, 2002 and before
March 7, 2003 and no Mortgage Loan secured by Mortgaged Property located in the State
of Georgia that was originated on or after March 7, 2003 is a "high cost home loan"
as defined in the Georgia Fair Lending Act (HB 1361), as amended;
(xxiii) With respect to each Cooperative Loan, the Cooperative Shares that
is pledged as security for the Cooperative Loan is held by a person as a
tenant-stockholder (as defined in Section 216 of the Code) in a cooperative housing
corporation (as defined in Section 216 of the Code);
(xxiv) None of the Mortgage Loans sold by the Seller are classified as
(a) a "high cost mortgage" loan under the Home Ownership and Equity Protection Act of
1994 or (b) a "high cost home," "covered," "high cost," "high risk home" or
"predatory" loan under any other applicable state, federal or local law;
(xxv) With respect to each Mortgage Loan, (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 similar
institution which is supervised and examined by a federal or state authority or
(b) at the time the Mortgage Loan was originated, the originator was a mortgagee duly
licensed as required by the State within which the Mortgage Loan was originated, and
was subject to supervision and examination conducted by the applicable State
authority of such State;
(xxvi) With respect to each Mortgage Loan that has a Prepayment Premium
feature, each such Prepayment Premium is enforceable and, at the time such Mortgage
Loan was originated, each Prepayment Premium complied with applicable federal, state
and local law, subject to federal preemption where applicable;
(xxvii) The related Servicer of each Mortgage Loan sold by the Seller will
fully furnish, in accordance with the Fair Credit Reporting Act and its implementing
regulations, accurate and complete information on its borrower credit files to
Equifax, Experian and Trans Union Credit Information Company, on a monthly basis;
(xxviii) [Reserved];
(xxix) With respect to the Group 4 Mortgage Loans, the original principal
balance of each such Mortgage Loan is within Xxxxxxx Mac's dollar amount limits for
conforming one- to four-family Mortgage Loans;
(xxx) Each Mortgage Loan that is secured by residential real property (or a
leasehold interest therein) has a loan-to-value ratio of 100% or less by Cut-Off Date
Principal Balance;
(xxxi) No Mortgage Loan sold by the Seller is a "High Cost Loan" or
"Covered Loan," as applicable, as such terms are defined in the then current Standard
& Poor's LEVELS(R) Glossary which is now Version 5.6c Revised, Appendix E, in effect as
of the Closing Date; and
(xxxii) With respect to any Mortgage Loan originated on or after August 1,
2004, neither the related Mortgage nor the related Mortgage Note requires the related
Mortgagor to submit to arbitration to resolve any dispute arising out of or relating
in any way to the Mortgage Loan.
Appendix A
CALCULATION OF REMIC I Y PRINCIPAL REDUCTION AMOUNTS
REMIC I Y Principal Reduction Amounts: For any Distribution Date
the amounts by which the principal balances of the Class Y-1, Class Y-2,
Class Y-3, Class Y-4 and Class Y-5 Certificates respectively will be reduced
on such distribution date by the allocation of Realized Losses and the
distribution of principal, determined as follows:
First for each of Group 1, Group 2, Group 3, Group 4 and Group 5 determine
the weighted average pass-through rate for that Group for distributions of
interest that will be made on the next succeeding Distribution Date (the
"Group Interest Rate"). The Principal Reduction Amount for each of the Class
Y Certificates will be determined pursuant to the "Generic solution for the
REMIC I Y Principal Reduction Amounts" set forth below (the "Generic
Solution") by making identifications among the actual Groups and their
related Class Y and Class Z Certificates and weighted average pass-through
rates and the Groups named in the Generic Solution and their related Class Y
and Class Z Certificates as follows:
A. Determine which Group has the lowest Group Interest Rate. That Group
will be identified with Group AA and the Class Y and Class Z Certificates
related to that Group will be respectively identified with the Class YAA and
Class ZAA Certificates. The Group Interest Rate for that Group will be
identified with J%. If two or more Groups have the lowest Group Interest
Rate pick one for this purpose, subject to the restriction that each Group
may be picked only once in the course of any such selections pursuant to
paragraphs A through E or this definition.
B. Determine which Group has the second lowest Group Interest Rate. That
Group will be identified with Group BB and the Class Y and Class Z
Certificates related to that Group will be respectively identified with the
Class BB and Class ZBB Certificates. The Group Interest Rate for that Group
will be identified with K%. If two or more Groups have the second lowest
Group Interest Rate pick one for this purpose, subject to the restriction
that each Group may be picked only once in the course of any such selections
pursuant to paragraphs A through E or this definition.
C. Determine which Group has the third lowest Group Interest Rate. That
Group will be identified with Group CC and the Class Y and Class Z
Certificates related to that Group will be respectively identified with the
Class YCC and Class ZCC Certificates. The Group Interest Rate for that Group
will be identified with L%. If two or more Groups have the third lowest
Group Interest Rate pick one for this purpose, subject to the restriction
that each Group may be picked only once in the course of any such selections
pursuant to paragraphs A through E or this definition.
D. Determine which Group has the fourth lowest Group Interest Rate. That
Group will be identified with Group DD and the Class Y and Class Z
Certificates related to that Group will be respectively identified with the
Class YDD and Class ZDD Certificates. The Group Interest Rate for that Group
will be identified with M%. If two or more Groups have the fourth lowest
Group Interest Rate pick one for this purpose, subject to the restriction
that each Group may be picked only once in the course of any such selections
pursuant to paragraphs A through E or this definition.
E. Determine which Group has the fifth lowest Group Interest Rate. That
Group will be identified with Group EE and the Class Y and Class Z
Certificates related to that Group will be respectively identified with the
Class XXX and Class ZEE Certificates. The Group Interest Rate for that Group
will be identified with N%. If two or more Groups have the fifth lowest
Group Interest Rate pick one for this purpose, subject to the restriction
that each Group may be picked only once in the course of any such selections
pursuant to paragraphs A through E or this definition.
Second, apply the Generic Solution set forth below to determine the REMIC I Y
Principal Reduction Amounts for the Distribution Date using the
identifications made above.
Generic Solution for the REMIC I Y Principal Reduction Amounts:
For any Distribution Date, the amounts by which the principal balances of the
Class YAA, Class YBB, Class YCC, Class YDD and Class XXX Certificates
respectively will be reduced on such Distribution Date by the allocation of
Realized Losses and the distribution of principal, determined as follows:
For purposes of the succeeding formulas the following symbols shall have the
meanings set forth below:
J% = the weighted average pass-through rate on the Group AA mortgage loans
for interest to be distributed on the next succeeding Distribution Date.
K% = the weighted average pass-through rate on the Group BB mortgage loans
for interest to be distributed on the next succeeding Distribution Date.
L% = the weighted average pass-through rate on the Group CC mortgage loans
for interest to be distributed on the next succeeding Distribution Date.
M% = the weighted average pass-through rate on the Group DD mortgage loans
for interest to be distributed on the next succeeding Distribution Date.
N% = the weighted average pass-through rate on the Group EE mortgage loans
for interest to be distributed on the next succeeding Distribution Date.
For purposes of the succeeding definitions and formulas, it is required that
J%<=K%<=L%<=M%<=N%.
PJB = the Group AA Subordinate Amount after the allocation of Realized
Losses and distributions of principal on such Distribution Date.
PKB = the Group BB Subordinate Amount after the allocation of Realized
Losses and distributions of principal on such Distribution Date.
PLB = the Group CC Subordinate Amount after the allocation of Realized Losses
and distributions of principal on such Distribution Date.
PMB = the Group DD Subordinate Amount after the allocation of Realized
Losses and distributions of principal on such Distribution Date.
PNB = the Group EE Subordinate Amount after the allocation of Realized
Losses and distributions of principal on such Distribution Date.
R = the Class CB Pass Through Rate
= (J%PJB + K%PKB + L%PLB + M%PMB + N%PNB)/(PJB + PKB + PLB + PMB +
PNB)
R11 = the weighted average of the Group AA, Group BB, Group CC and Group DD
Pass-Through Rates after giving effect to the allocation of Realized
Losses and distributions of principal to be made on such Distribution
Date
=
{J% (Pj - ΔPj) + K% (Pk - ΔPk) + L% (Pl - ΔPl) + M% (Pm - ΔPm)}/
(Pj - ΔPj + Pk - ΔPk + Pl - ΔPl + Pm - ΔPm)
R12 = the Group EE Pass-Through Rate
= N%
R21 = the weighted average of the Group AA, Group BB and Group CC
Pass-Through Rates after giving effect to the allocation of Realized
Losses and distributions of principal to be made on such Distribution
Date
= {J% (Pj - ΔPj) + K% (Pk - ΔPk) + L% (Pl - ΔPl)
}/(Pj - ΔPj + Pk - ΔPk + Pl - ΔPl )
R22 = the weighted average of the Group DD and Group EE Pass-Through Rates
= { M% (Pm - ΔPm) + N% (Pn - ΔPn)
}/( Pm - ΔPm + Pn - ΔPn )
R31 = the weighted average of the Group AA and Group BB Pass-Through Rates
after giving effect to the allocation of Realized Losses and
distributions of principal to be made on such Distribution Date
= {(J% (Pj - ΔPj) + K% (Pk - ΔPk)
}/(Pj - ΔPj + Pk - ΔPk)
R32 = the weighted average of the Group CC, Group DD and Group EE
Pass-Through Rates after giving effect to the allocation of Realized
Losses and distributions of principal to be made on such Distribution
Date
= { L% (Pl - ΔPl) + M% (Pm - ΔPm) + N% (Pn - ΔPn)
}/( Pl - ΔPl + Pm - ΔPm + Pn - ΔPn)
R41 = the Group AA Pass-Through Rates after giving effect to the allocation
of Realized Losses and distributions of principal to be made on such
Distribution Date
= J%
R42 = the weighted average of the Group BB, Group CC, Group DD and Group EE
Pass-Through Rates after giving effect to the allocation of Realized
Losses and distributions of principal to be made on such Distribution
Date
=
{K% (Pk - ΔPk) + L% (Pl - ΔPl) + M% (Pm - ΔPm) + N% (Pn - ΔPn)
}/
( Pk - ΔPk + Pl - ΔPl + Pm - ΔPm + Pn - ΔPn )
r11 = the weighted average of the Class YAA, Class YBB, Class YCC and Class
YDD Pass-Through Rates
= (J% Yj + K% Yk + L% Yl + M% Ym )/(Yj + Yk + Yl + Ym )
r12 = the Class XXX Pass-Through Rate
= N%
r21 = the weighted average of the Class YAA, Class YBB and Class YCC
Pass-Through Rates
= (J% Yj + K% Yk + L% Yl )/(Yj + Yk + Yl )
r22 = the weighted average of the Class YDD and Class XXX Pass-Through Rates
= ( M% Ym + N% Yn )/( Ym + Yn )
r31 = the weighted average of the Class YAA and Class YBB Pass-Through Rates
= (J% Yj + K% Yk )/(Yj + Yk )
r32 = the weighted average of the Class YCC, Class YDD and Class XXX
Pass-Through Rates
= ( L% Yl + M% Ym + N% Yn)/( Yl + Ym + Yn )
r41 = the Class YAA Pass-Through Rate
= J%
r42 = the weighted average of the Class YBB, Class YCC, Class YDD and Class
XXX Pass-Through Rates
= (K% Yk + L% Yl + M% Ym + N% Yn )/(Yk + Yl + Ym + Yn )
Yj = the principal balance of the Class YAA Certificates after distributions
on the prior Distribution Date.
Yk = the principal balance of the Class YBB Certificates after distributions
on the prior Distribution Date.
Yl = the principal balance of the Class YCC Certificates after distributions
on the prior Distribution Date.
Ym = the principal balance of the Class YDD Certificates after distributions
on the prior Distribution Date.
Yn = the principal balance of the Class XXX Certificates after distributions
on the prior Distribution Date.
ΔYj = the Class YAA Principal Reduction Amount.
ΔYk = the Class YBB Principal Reduction Amount.
ΔYl = the Class YCC Principal Reduction Amount.
ΔYm = the Class YDD Principal Reduction Amount.
ΔYn = the Class XXX Principal Reduction Amount.
Zj = the principal balance of the Class ZAA Certificates after distributions
on the prior Distribution Date.
Zk = the principal balance of the Class ZBB Certificates after distributions
on the prior Distribution Date.
Zl = the principal balance of the Class ZCC Certificates after distributions
on the prior Distribution Date.
Zm = the principal balance of the Class ZDD Certificates after distributions
on the prior Distribution Date.
Zn = the principal balance of the Class ZEE Certificates after distributions
on the prior Distribution Date.
ΔZj = the Class ZAA Principal Reduction Amount.
ΔZk = the Class ZBB Principal Reduction Amount.
ΔZl = the Class ZCC Principal Reduction Amount.
ΔZm = the Class ZDD Principal Reduction Amount.
ΔZn = the Class ZEE Principal Reduction Amount.
Pj = the aggregate principal balance of the Class YAA and Class ZAA
Certificates after distributions on the prior Distribution Date.
= Yj + Zj
Pk = the aggregate principal balance of the Class YBB and Class ZBB
Certificates after distributions on the prior Distribution Date.
= Yk + Zk
Pl = the aggregate principal balance of the Class YCC and Class ZCC
Certificates after distributions on the prior Distribution Date.
= Yl + Zl =
Pm = the aggregate principal balance of the Class YAA and Class ZAA
Certificates after distributions on the prior Distribution Date.
= Ym + Zm
Pn = the aggregate principal balance of the Class YAA and Class ZAA
Certificates after distributions on the prior Distribution Date.
= Yn + Zn
ΔPj = the aggregate amount of principal reduction occurring with
respect to the Group AA mortgage loans from Realized Losses or payments
of principal to be allocated on such Distribution Date net of any such
amounts allocated to the Class R-I Certificate or to any class of
principal only certificates created by ratio stripping the mortgage
loans of Group AA
= the aggregate of the Class YAA and Class ZAA Principal Reduction
Amounts.
= ΔYj + ΔZj
ΔPk = the aggregate amount of principal reduction occurring with
respect to the Group BB mortgage loans from Realized Losses or payments
of principal to be allocated on such Distribution Date net of any such
amounts allocated to the Class R-I Certificate or to any class of
principal only certificates created by ratio stripping the mortgage
loans of Group BB
= the aggregate of the Class YBB and Class ZBB Principal Reduction
Amounts.
= ΔYk + ΔZk
ΔPl= the aggregate amount of principal reduction occurring with
respect to the Group CC mortgage loans from Realized Losses or payments
of principal to be allocated on such Distribution Date net of any such
amounts allocated to the Class R-I Certificate or to any class of
principal only certificates created by ratio stripping the mortgage
loans of Group CC
= the aggregate of the Class YCC and Class ZCC Principal Reduction
Amounts.
= ΔYl + ΔZl
ΔPm = the aggregate amount of principal reduction occurring with
respect to the Group DD mortgage loans from Realized Losses or payments
of principal to be allocated on such Distribution Date net of any such
amounts allocated to the Class R-I Certificate or to any class of
principal only certificates created by ratio stripping the mortgage
loans of Group DD
= the aggregate of the Class YDD and Class ZDD Principal Reduction
Amounts.
= ΔYm + ΔZm
ΔPn = the aggregate amount of principal reduction occurring with
respect to the Group EE mortgage loans from Realized Losses or payments
of principal to be allocated on such Distribution Date net of any such
amounts allocated to the Class R-I Certificate or to any class of
principal only certificates created by ratio stripping the mortgage
loans of Group EE
= the aggregate of the Class XXX and Class ZEE Principal Reduction
Amounts.
= ΔYn + ΔZn
α = .0005
γ1 = (R - R11)/(R12 - R). If R=>M%, γ1 is a non-negative number
unless its denominator is zero, in which event it is undefined.
γ2 = (R - R21)/(R22 - R). If R=>L%, γ2 is a non-negative number
unless its denominator is zero, in which event it is undefined.
γ3 = (R - R31)/(R32 - R). If R=>K%, γ3 is a non-negative number
unless its denominator is zero, in which event it is undefined.
γ4 = (R - R41)/(R42 - R). If R<K%, γ4 is a non-negative number
unless its denominator is zero, in which event it is undefined.
If γ1 is undefined, ΔYj = Yj, ΔYk = Yk, ΔYl = Yl,
ΔYm = Ym and ΔYn = (Yn/Pn)ΔPn.
If γ7 is zero, ΔYj = (Yj/Pj)ΔPj, ΔYk = Yk, ΔYl
= Yl, ΔYm = Ym and ΔYn = Yn.
In the remaining situations, ΔYj, ΔYk, ΔYl, ΔYm and
ΔYn shall be defined as follows:
I. If R=>M%, make the following additional definitions:
δ1Yj = 0, if R11< r11;
(R11- r11)( Yj + Yk + Yl + Ym)Yj/
{(R11 - J%)Yj + (R11 - K%)Yk + (R11 - L%)Yl +
(R11 - M%)Ym }, if R11=> r11 and
R11=>M%;
(R11- r11)( Yj + Yk + Yl + Ym )Yj/
{(R11 - J%)Yj + (R11 - K%)Yk + (R11 - L%)Yl }, if R11=>
r11 and M%>R11=>L%;
(R11- r11)( Yj + Yk + Yl + Ym )Yj/
{(R11 - J%)Yj + (R11 - K%)Yk }, if R11=>
r11 and L%>R11=>K%; and
(R11- r11)( Yj + Yk + Yl + Ym )/(R11 - J%), if
R11=> r11 and K%>R11=>J%.
δ1Yk = 0, if R11< r11
and R11=>K%;
(R11- r11)( Yj + Yk + Yl + Ym)Yk/
{ (R11 - K%)Yk + (R11 - L%)Yl + (R11 - M%)Ym }, if R11< r11
and R11<K%;
(R11- r11)( Yj + Yk + Yl + Ym )Yk/
{(R11 - J%)Yj + (R11 - K%)Yk + (R11 - L%)Yl +
(R11 - M%)Ym }, if R11=> r11 and
R11=>M%;
(R11- r11)( Yj + Yk + Yl + Ym )Yk/
{(R11 - J%)Yj + (R11 - K%)Yk + (R11 - L%)Yl }, if R11=>
r11 and M%>R11=>L%;
(R11- r11)( Yj + Yk + Yl + Ym )Yk/{(R11 - J%)Yj + (R11 - K%)Yk },
if R11=> r11 and L%>R11=>K%; and
0, if R11=> r11 and R11<K%.
δ1Yl = 0, if R11< r11
and R11=>L%;
(R11- r11)( Yj + Yk + Yl + Ym)Yl/
{ (R11 - L%)Yl + (R11 - M%)Ym }, if R11< r11
and K%<=R11<L%;
(R11- r11)( Yj + Yk + Yl + Ym)Yl/
{ (R11 - K%)Yk + (R11 - L%)Yl + (R11 - M%)Ym }, if R11< r11
and R11<K%;
(R11- r11)( Yj + Yk + Yl + Ym)Yl/
{(R11 - J%)Yj + (R11 - K%)Yk + (R11 - L%)Yl +
(R11 - M%)Ym }, if R11=> r11 and
R11=>M%;
(R11- r11)( Yj + Yk + Yl + Ym )Yl/
{(R11 - J%)Yj + (R11 - K%)Yk + (R11 - L%)Yl }, if R11=>
r11 and M%>R11=>L%;
0, if R11=> r11 and R11<L%.
δ1Ym = 0, if R11< r11
and R11=>M%;
(R11- r11)( Yj + Yk + Yl + Ym)/(R11 - M%), if
R11< r11 and L%<=R11<M%;
(R11- r11)( Yj + Yk + Yl + Ym)Ym/
{ (R11 - L%)Yl + (R11 - M%)Ym }, if R11< r11
and K%<=R11<L%;
(R11- r11)( Yj + Yk + Yl + Ym)Ym/
{ (R11 - K%)Yk + (R11 - L%)Yl + (R11 - M%)Ym }, if R11< r11
and R11<K%;
(R11- r11)( Yj + Yk + Yl + Ym + Yn + Yo +Yp )Ym/
{(R11 - J%)Yj + (R11 - K%)Yk + (R11 - L%)Yl +
(R11 - M%)Ym }, if R11=> r11 and
R11=>M%;
0, if R11=> r11 and R11<M%.
δ1Yj, δ1Yk, δ1Yl and δ1Ym are numbers respectively
between Yj, Yk, Yl and Ym and 0 such that
{J%(Yj - δ1Yj ) + K%( Yk.- δ1Yk) + L%( Yl.-
δ1Yl) + M%( Ym.- δ1Ym) }/
(Yj - δ1Yj + Yk.- δ1Yk + Yl.- δ1Yl + Ym.-
δ1Ym)
= R11.
Y11 = Yj - δ1Yj + Yk.- δ1Yk + Yl.- δ1Yl + Ym.-
δ1Ym
P11 = Pj + Pk + Pl + Pm.
Z11 = Zj + Zk + Zl + Zm.
ΔY11 = ΔYj - δ1Yj + ΔYk.- δ1Yk + ΔYl.- δ1Yl + ΔYm.-
δ1Ym .
ΔP11 = ΔPj + ΔPk + ΔPl + ΔPm.
ΔZ11 = ΔZj + ΔZk + ΔZl + ΔZm.
1. If Yn - α(Pn - ΔPn) => 0, Y11- α(P11 - ΔP11) =>
0, and γ1(P11 - ΔP11) < (Pn - ΔPn), then
ΔYn = Yn - αγ1(P11 - ΔP11) and
ΔY11 = Y11 - α(P11 - ΔP11).
2. If Yn - α(Pn - ΔPn) => 0, Y11 - α(P11 - ΔP11)
=> 0, and γ1(P11 - ΔP11) => (Pn - ΔPn), then
ΔYn = Yn - α(Pn - ΔPn) and
ΔY11 = Y11 - (α/γ1)(Pn - ΔPn).
3. If Yn - α(Pn - ΔPn) < 0, Y11 - α(P11 - ΔP11) =>
0, and Y11 - α(P11 - ΔP11) => Y11 - (Yn/γ1), then
ΔYn = Yn - αγ1(P11 - ΔP11) and
ΔY11 = Y11 - α(P11 - ΔP11).
4. If Yn - α(Pn - ΔPn) < 0, Y11 - (Yn/γ1) => 0, and
Y11 - α(P11 - ΔP11) <= Y11 - (Yn/γ1), then ΔYn = 0
and ΔY11 = Y11 - (Yn/γ1).
5. If Y11 - α(P11 - ΔP11) < 0, Y11 - (Yn/γ1) < 0, and
Yn - α(Pn - ΔPn) <= Yn - (γ1Y11), then
ΔYn = Yn - (γ1Y11) and ΔY11 = 0.
6. If Y11 - α(P11 - ΔP11) < 0, Yn - α(Pn - ΔPn) =>
0, and Yn - α(Pn - ΔPn) => Yn - (γ1Y11), then
ΔYn = Yn - α(Pn - ΔPn) and
ΔY11 = Y11 - (α/γ1)(Pn - ΔPn).
ΔYj = δ1Yj + [(Yj - δ1Yj )/Y11 ]Δ Y11
ΔYk = δ1Yk + [(Yk - δ1Yk )/Y11 ]ΔY11
ΔYl = δ1Yl + [(Yl - δ1Yl )/Y11 ]Δ Y11
ΔYm = δ1Ym + [(Ym - δ1Ym )/Y11 ]ΔY11
The purpose of the foregoing definitional provisions together with the
related provisions allocating Realized Losses and defining the Class Y and
Class Z Principal Distribution Amounts is to accomplish the following goals
in the following order of priority:
1. Making the ratio of (Yn - ΔYn ) to (Y11 - ΔY11 ) equal to γ1
after taking account of the allocation Realized Losses and the
distributions that will be made through the end of the Distribution
Date to which such provisions relate and assuring that the Principal
Reduction Amount for each of the Class YAA, Class YBB, Class YCC, Class
YDD, Class XXX, Class ZAA, Class ZBB, Class ZCC, Class ZDD and Class
ZEE Certificates is greater than or equal to zero for such Distribution
Date;
2. Making the Class YAA Principal Balance less than or equal to 0.0005 of
the sum of the Class YAA and Class ZAA Principal Balances, the Class
YBB Principal Balance less than or equal to 0.0005 of the sum of the
Class YBB and Class ZBB Principal Balances, the Class YCC Principal
Balance less than or equal to 0.0005 of the sum of the Class YCC and
Class ZCC Principal Balances, the Class YDD Principal Balance less than
or equal to 0.0005 of the sum of the Class YDD and Class ZDD Principal
Balances and the Class XXX Principal Balance less than or equal to
0.0005 of the sum of the Class XXX and Class ZEE Principal Balances in
each case after giving effect to allocations of Realized Losses and
distributions to be made through the end of the Distribution Date to
which such provisions relate; and
3. Making the larger of (a) the fraction whose numerator is (Yn - ΔYn )
and whose denominator is the sum of (Yn - ΔYn) and (Zn - ΔZn) and (b)
the fraction whose numerator is (Y11 - ΔY11) and whose denominator is
the sum of (Y11 - ΔY11) and (Z11 - ΔZ11) as large as possible while
remaining less than or equal to 0.0005.
In the event of a failure of the foregoing portion of the definition of
ClassY Principal Reduction Amount to accomplish both of goals 1 and 2 above,
the amounts thereof should be adjusted to so as to accomplish such goals
within the requirement that each REMIC I Y Principal Reduction Amount must be
less than or equal to the sum of (a) the Principal Realized Losses to be
allocated on the related Distribution Date for the related Pool remaining
after the allocation of such Realized Losses to the related class of
ratio-strip principal only certificates, if any, and (b) the remainder of the
Available Distribution Amount for the related Pool or after reduction thereof
by the distributions to be made on such Distribution Date (i) to the related
class of ratio-strip principal only certificates, if any, (ii) to the related
class of ratio-strip interest only certificates, if any, and (iii) in respect
of interest on the related Class Y and Class Z Certificates, or, if both of
such goals cannot be accomplished within such requirement, such adjustment as
is necessary shall be made to accomplish goal 1 within such requirement. In
the event of any conflict among the provisions of the definition of the REMIC
I Y Principal Reduction Amounts, such conflict shall be resolved on the basis
of the goals and their priorities set forth above within the requirement set
forth in the preceding sentence. If the formula allocation of ΔY11 among
ΔYj, ΔYk, ΔYl and ΔYm cannot be achieved because one or more of ΔYj, ΔYk, ΔYl
and ΔYm, as so defined is greater than the related one of ΔPj, ΔPk, ΔPl and
ΔPm, such an allocation shall be made as close as possible to the formula
allocation within the requirement that ΔYj < ΔPj, ΔYk < ΔPk, ΔYl < ΔPl, ΔYm <
ΔPm and ΔYm < ΔPm.
II. If L%<=R<=M%, make the following additional definitions:
δ5Yj = 0, if R51< r51;
(R51- r51)( Yj + Yk + Yl )Yj/
{(R51 - J%)Yj + (R51 - K%)Yk }, if R51=>
r51 and L%>R51=>K%; and
(R51- r51)( Yj + Yk + Yl )/(R51 - J%), if R51=>
r51 and K%>R51=>J%.
δ5Yk = 0, if R51< r51
and R51=>K%;
(R51- r51)( Yj + Yk + Yl )Yk/
{ (R51 - K%)Yk + (R51 - L%)Yl }, if R51< r51
and R51<K%;
(R51- r51)( Yj + Yk + Yl )Yk/
{(R51 - J%)Yj + (R51 - K%)Yk }, if R51=>
r51 and L%>R51=>K%; and
0, if R51=> r51 and R51<K%.
δ5Yl = (R51- r51)( Yj + Yk + Yl )/(R51 - L%),
if R51< r51 and K%<=R51<L%;
(R51- r51)( Yj + Yk + Yl )Yl/{ (R51 - K%)Yk + (R51 - L%)Yl },
if R51< r51 and R51<K%;
0, if R51=> r51.
δ5Ym = 0, if R52< r52;
(R52- r52)( Ym + Yn + Yo +Yp + Yq )/(R52 - M%), if
R52=> r52 and R52=>M%;
δ5Yn = the greater of 0 and ΔPn - Zn,
if R52=N%;
(R52- r52)( Ym + Yn)/(R52 - N%), if R52< r52
and M%<=R52<N%;
0, if R52=> r52 and R52<N%.
δ5Yj, δ5Yk, x0Xx, x0Xx, x0Xx, x0Xx,
x0Xx and δ5Yq are numbers respectively between Yj, Yk, Yl,
Ym, Yn, Yo, Yp and Yq and 0 such that:
{J%(Yj - δ5Yj ) + K%( Yk.- δ5Yk) + L%( Yl.-
δ5Yl)}/
( Yj - δ5Yj + Yk.- δ5Yk + Yl.- δ5Yl)
= R51;
and
{ M%( Ym.- δ5Ym) + N%( Yn.- δ5Yn) + O%( Yo.-
δ5Yo) + P%( Yp.- δ5Yp) + Q%(Yq - δ5Yq ) }/
(Ym.- δ5Ym + Yn.- δ5Yn + Yo.- δ5Yo + Yp.-
δ5Yp + Yq - δ5Yq)
= R52.
Y51 = Yj - δ5Yj + Yk.- δ5Yk + Yl.- δ5Yl.
P51 = Pj + Pk + Pl.
Z51 = Zj + Zk + Zl.
ΔY51 = ΔYj - δ5Yj + ΔYk.- δ5Yk + ΔYl.- δ5Yl.
ΔP51 = ΔPj + ΔPk + ΔPl.
ΔZ51 = ΔZj + ΔZk + ΔZl.
Y52 = Ym.- δ5Ym + Yn.- δ5Yn.
P52 = Pm + Pn.
Z52 = Zm + Zn.
ΔY52 = ΔYm.- δ5Ym + ΔYn.- δ5Yn
ΔP52 = ΔPm + ΔPn.
ΔZ52 = ΔZm + ΔZn.
1. If Y52 - α(P52 - ΔP52) => 0, Y51- α(P51 - ΔP51)
=> 0, and γ5(P51 - ΔP51) < (P52 - ΔP52), then
ΔY52 = Y52 - αγ5(P51 - ΔP51) and
ΔY51 = Y51 - α(P51 - ΔP51).
2. If Y52 - α(P52 - ΔP52) => 0,
Y51 - α(P51 - ΔP51) => 0, and γ5(P51 - ΔP51) =>
(P52 - ΔP52), then ΔY52 = Y52 - α(P52 - ΔP52) and
ΔY51 = Y51 - (α/γ5)(P52 - ΔP52).
3. If Y52 - α(P52 - ΔP52) < 0, Y51 - α(P51 - ΔP51)
=> 0, and Y51 - α(P51 - ΔP51) => Y51 - (Y52/γ5), then
ΔY52 = Y52 - αγ5(P51 - ΔP51) and
ΔY51 = Y51 - α(P51 - ΔP51).
4. If Y52 - α(P52 - ΔP52) < 0, Y51 - (Y52/γ5) => 0, and
Y51 - α(P51 - ΔP51) <= Y51 - (Y52/γ5), then
ΔY52 = 0 and ΔY51 = Y51 - (Y52/γ5).
5. If Y51 - α(P51 - ΔP51) < 0, Y51 - (Y52/γ5) < 0, and
Y52 - α(P52 - ΔP52) <= Y52 - (γ5Y51), then
ΔY52 = Y52 - (γ5Y51) and ΔY51 = 0.
6. If Y51 - α(P51 - ΔP51) < 0, Y52 - α(P52 - ΔP52)
=> 0, and Y52 - α(P52 - ΔP52) => Y52 - (γ5Y51), then
ΔY52 = Y52 - α(P52 - ΔP52) and
ΔY51 = Y51 - (α/γ5)(P52 - ΔP52).
ΔYj = δ5Yj + [(Yj - δ5Yj )/Y51 ]ΔY51
ΔYk = δ5Yk + [(Yk - δ5Yk )/Y51 ]ΔY51
ΔYl = δ5Yl + [(Yl - δ5Yl )/Y51 ]ΔY51
ΔYm = δ5Ym + [(Ym - δ5Ym )/Y52 ]ΔY52
ΔYn = δ5Yn + [(Yn - δ5Yn )/Y52 ]ΔY52
ΔYo = δ5Yo + [(Yo - δ5Yo )/Y52 ]ΔY52
ΔYp = δ5Yp + [(Yp - δ5Yp )/Y52 ]ΔY52
ΔYq = δ5Yq + [(Yq - δ5Yq )/Y52 ]ΔY52
The purpose of the foregoing definitional provisions together with the
related provisions allocating Realized Losses and defining the Class Y and
Class Z Principal Distribution Amounts is to accomplish the following goals
in the following order of priority:
1. Making the ratio of (Y52 - ΔY52 ) to (Y51 - ΔY51 ) equal to
γ5 after taking account of the allocation Realized Losses and the
distributions that will be made through the end of the Distribution
Date to which such provisions relate and assuring that the Principal
Reduction Amount for each of the Class YAA, Class YBB, Class YCC, Class
YDD, Class XXX, Class YFF, Class YGG, Class YHH, Class ZAA, Class ZBB,
Class ZCC, Class ZDD, Class ZEE, Class ZFF, Class ZGG and Class ZHH
Certificates is greater than or equal to zero for such Distribution
Date;
2. Making the Class YAA Principal Balance less than or equal to 0.0005 of
the sum of the Class YAA and Class ZAA Principal Balances, the Class
YBB Principal Balance less than or equal to 0.0005 of the sum of the
Class YBB and Class ZBB Principal Balances, the Class YCC Principal
Balance less than or equal to 0.0005 of the sum of the Class YCC and
Class ZCC Principal Balances, the Class YDD Principal Balance less than
or equal to 0.0005 of the sum of the Class YDD and Class ZDD Principal
Balances, the Class XXX Principal Balance less than or equal to 0.0005
of the sum of the Class XXX and Class ZEE Principal Balances, the Class
YFF Principal Balance less than or equal to 0.0005 of the sum of the
Class YFF and Class ZFF Principal Balances, the Class YGG Principal
Balance less than or equal to 0.0005 of the sum of the Class YGG and
Class ZGG Principal Balances and the Class YHH Principal Balance less
than or equal to 0.0005 of the sum of the Class YHH and Class ZHH
Principal Balances in each case after giving effect to allocations of
Realized Losses and distributions to be made through the end of the
Distribution Date to which such provisions relate; and
3. Making the larger of (a) the fraction whose numerator is (Y52 -
ΔY52 ) and whose denominator is the sum of (Y52 - ΔY52) and
(Z52 - ΔZ52) and (b) the fraction whose numerator is (Y51 -
ΔY51) and whose denominator is the sum of (Y51 - ΔY51) and
(Z51 - ΔZ51) as large as possible while remaining less than or
equal to 0.0005.
In the event of a failure of the foregoing portion of the definition of
ClassY Principal Reduction Amount to accomplish both of goals 1 and 2 above,
the amounts thereof should be adjusted to so as to accomplish such goals
within the requirement that each REMIC I Y Principal Reduction Amount must be
less than or equal to the sum of (a) the Principal Realized Losses to be
allocated on the related Distribution Date for the related Pool remaining
after the allocation of such Realized Losses to the related class of
ratio-strip principal only certificates, if any, and (b) the remainder of the
Available Distribution Amount for the related Pool or after reduction thereof
by the distributions to be made on such Distribution Date (i) to the related
class of ratio-strip principal only certificates, if any, (ii) to the related
class of ratio-strip interest only certificates, if any, and (iii) in respect
of interest on the related Class Y and Class Z Certificates, or, if both of
such goals cannot be accomplished within such requirement, such adjustment as
is necessary shall be made to accomplish goal 1 within such requirement. In
the event of any conflict among the provisions of the definition of the REMIC
I Y Principal Reduction Amounts, such conflict shall be resolved on the basis
of the goals and their priorities set forth above within the requirement set
forth in the preceding sentence. If the formula allocations of ΔY51
among ΔYj, ΔYk and ΔYl or ΔY52 among ΔYm, ΔYn,
ΔYo, ΔYp and ΔYq cannot be achieved because one or more of
ΔYj, ΔYk, ΔYl, ΔYm, ΔYn, ΔYo, ΔYp and
ΔYq, as so defined is greater than the related one of ΔPj,
ΔPk, ΔPl, ΔPm, ΔPn, ΔPo, ΔPp and ΔPq, such
an allocation shall be made as close as possible to the formula allocation
within the requirement that ΔYj < ΔPj, ΔYk < ΔPk,
ΔYl < ΔPl, ΔYm < ΔPm, ΔYn < ΔPn, ΔYo <
ΔPo, ΔYp < ΔPp and ΔYq < ΔPq.
VI. If K%<=R<=L%, make the following additional definitions:
δ6Yj = 0, if R61<
r61; and
(R61- r61)( Yj + Yk )/(R61 - J%), if R61=>
r61 and K%>R61=>J%.
δ6Yk = (R61- r61)( Yj + Yk )/(R61 - K%),
if R61< r61 and R61<K%; and
0, if R61=> r61 and R61<K%.
δ6Yl = 0, if R62< r62;
(R62- r62)( Yl + Ym + Yn + Yo + Yp + Yq )Yl/
{ (R62 - L%)Yl + (R62 - M%)Ym +
(R62 - N%)Yn + (R62 - O%)Yo + (R62 - P%)Yp }, if R62=>
r62 and R62=>P%;
(R62- r62)( Yl + Ym + Yn + Yo + Yp + Yq )Yl/
{ (R62 - L%)Yl + (R62 - M%)Ym +
(R62 - N%)Yn + (R62 - O%)Yo}, if R62=>
r62 and P%>R62=>O%;
(R62- r62)( Yl + Ym + Yn + Yo + Yp + Yq )Yl/
{ (R62 - L%)Yl + (R62 - M%)Ym + (R62 - N%)Yn }, if
R62=> r62 and O%>R62=>N%;
(R62- r62)( Yl + Ym + Yn + Yo +Yp + Yq )Yl/
{ (R62 - L%)Yl + (R62 - M%)Ym }, if R62=>
r62 and N%>R62=>M%;
(R62- r62)( Yl + Ym + Yn + Yo + Yp + Yq )/(R62 - L%),
if R62=> r62 and M%>R62=>L%;
δ6Ym = 0, if R62< r62
and R62=>M%;
(R62- r62)( Yl + Ym + Yn + Yo + Yp + Yq )Ym/
{ (R62 - M%)Ym + (R62 - N%)Yn + (R62 - O%)Yo +
(R62 - P%)Yp + (R62 - Q%)Yq }, if R62< r62
and L%<=R62<M%;
(R62- r62)( Yl + Ym + Yn + Yo + Yp + Yq )Ym/
{ (R62 - L%)Yl + (R62 - M%)Ym +
(R62 - N%)Yn + (R62 - O%)Yo + (R62 - P%)Yp }, if R62=>
r62 and R62=>P%;
(R62- r62)( Yl + Ym + Yn + Yo + Yp + Yq )Ym/
{ (R62 - L%)Yl + (R62 - M%)Ym +
(R62 - N%)Yn + (R62 - O%)Yo}, if R62=>
r62 and P%=>R62=>O%;
(R62- r62)( Yl + Ym + Yn + Yo + Yp + Yq )Ym/
{ (R62 - L%)Yl + (R62 - M%)Ym + (R62 - N%)Yn }, if
R62=> r62 and O%>R62=>N%;
(R62- r62)( Yl + Ym + Yn + Yo +Yp + Yq )Ym/
{ (R62 - L%)Yl + (R62 - M%)Ym }, if R62=>
r62 and N%>R62=>M%;
0, if R62=> r62 and R62<M%.
δ6Yn = 0, if R62< r62
and R62=>N%;
(R62- r62)( Yl + Ym + Yn + Yo + Yp + Yq )Yn/
{ (R62 - N%)Yn + (R62 - O%)Yo +
(R62 - P%)Yp + (R62 - Q%)Yq }, if R62< r62
and M%<=R62<N%;
(R62- r62)( Yl + Ym + Yn + Yo + Yp + Yq )Yn/
{ (R62 - M%)Ym + (R62 - N%)Yn + (R62 - O%)Yo +
(R62 - P%)Yp + (R62 - Q%)Yq }, if R62< r62
and L%<=R62<M%;
(R62- r62)( Yl + Ym + Yn + Yo + Yp + Yq )Yn/
{ (R62 - L%)Yl + (R62 - M%)Ym +
(R62 - N%)Yn + (R62 - O%)Yo + (R62 - P%)Yp }, if R62=>
r62 and R62=>P%;
(R62- r62)( Yl + Ym + Yn + Yo + Yp + Yq )Yn/
{ (R62 - L%)Yl + (R62 - M%)Ym +
(R62 - N%)Yn + (R62 - O%)Yo }, if R62=>
r62 and P%>R62=>O%;
(R62- r62)( Yl + Ym + Yn + Yo + Yp + Yq )Yn/
{ (R62 - L%)Yl + (R62 - M%)Ym + (R62 - N%)Yn }, if
R62=> r62 and O%>R62=>N%;
0, if R62=> r62 and R62<N%.
δ6Yo = 0, if R62< r62
and R62=>O%;
(R62- r62)( Yl + Ym + Yn + Yo + Yp + Yq )Yo/
{ (R62 - O%)Yo + (R62 - P%)Yp + (R62 - Q%)Yq }, if R62< r62
and N%<=R62<O%;
(R62- r62)( Yl + Ym + Yn + Yo + Yp + Yq )Yo/
{ (R62 - N%)Yn + (R62 - O%)Yo + (R62 - P%)Yp +
(R62 - Q%)Yq }, if R62< r62 and
M%<=R62<N%;
(R62- r62)( Yl + Ym + Yn + Yo + Yp + Yq )Yo/
{ (R62 - M%)Ym + (R62 - N%)Yn + (R62 - O%)Yo +
(R62 - P%)Yp + (R62 - Q%)Yq }, if R62< r62
and L%<=R62<M%;
(R62- r62)( Yl + Ym + Yn + Yo + Yp + Yq )Yo/
{ (R62 - L%)Yl + (R62 - M%)Ym +
(R62 - N%)Yn + (R62 - O%)Yo + (R62 - P%)Yp }, if R62=>
r62 and R62=>P%;
(R62- r62)( Yl + Ym + Yn + Yo + Yp + Yq )Yo/
{ (R62 - L%)Yl + (R62 - M%)Ym +
(R62 - N%)Yn + (R62 - O%)Yo}, if R62=>
r62 and P%>R62=>O%;
0, if R62=> r62 and R62<O%.
δ6Yp = 0, if R62< r62
and R62=>P%;
(R62- r62)( Yl + Ym + Yn + Yo + Yp + Yq)Yp/
{ (R62 - P%)Yp + (R62 - Q%)Yq }, if R62< r62
and O%<=R62<P%;
(R62- r62)( Yl + Ym + Yn + Yo + Yp + Yq)Yp/
{ (R62 - O%)Yo + (R62 - P%)Yp + (R62 - Q%)Yq }, if R62< r62
and N%<=R62<O%;
(R62- r62)( Yl + Ym + Yn + Yo + Yp + Yq)Yp/
{ (R62 - N%)Yn + (R62 - O%)Yo + (R62 - P%)Yp +
(R62 - Q%)Yq }, if R62< r62 and
M%<=R62<N%;
(R62- r62)( Yl + Ym + Yn + Yo + Yp + Yq)Yp/
{ (R62 - M%)Ym + (R62 - N%)Yn +
(R62 - O%)Yo + (R62 - P%)Yp + (R62 - Q%)Yq }, if R62< r62
and L%<=R62<M%;
(R62- r62)( Yl + Ym + Yn + Yo + Yp + Yq )Yp/
{ (R62 - L%)Yl + (R62 - M%)Ym +
(R62 - N%)Yn + (R62 - O%)Yo + (R62 - P%)Yp }, if R62=>
r62 and R62=>P%;
0, if R62=> r62 and R62<P%.
δ6Yq = (R62- r62)( Yl + Ym + Yn + Yo + Yp + Yq)/(R62 - Q%),
if R62< r62 and P%<=R62;
(R62- r62)( Yl + Ym + Yn + Yo + Yp + Yq)Yq/
{ (R62 - P%)Yp + (R62 - Q%)Yq }, if R62< r62
and O%<=R62<P%;
(R62- r62)( Yl + Ym + Yn + Yo + Yp + Yq)Yq/
{ (R62 - O%)Yo + (R62 - P%)Yp + (R62 - Q%)Yq }, if R62< r62
and N%<=R62<O%;
(R62- r62)( Yl + Ym + Yn + Yo + Yp + Yq)Yq/
{ (R62 - N%)Yn + (R62 - O%)Yo + (R62 - P%)Yp +
(R62 - Q%)Yq }, if R62< r62 and
M%<=R62<N%;
(R62- r62)( Yl + Ym + Yn + Yo + Yp + Yq)Yq/
{ (R62 - M%)Ym + (R62 - N%)Yn +
(R62 - O%)Yo + (R62 - P%)Yp + (R62 - Q%)Yq }, if R62< r62
and L%<=R62<M%;
0, if R62=> r62.
δ6Yj, δ6Yk, x0Xx, x0Xx, x0Xx, x0Xx,
x0Xx and δ6Yq are numbers respectively between Yj, Yk, Yl,
Ym, Yn, Yo, Yp and Yq and 0 such that:
{J%(Yj - δ6Yj ) + K%( Yk.- δ6Yk) }/
( Yj - δ6Yj + Yk.- δ6Yk)
= R61;
and
{ L%( Yl.- δ6Yl) + M%( Ym.- δ6Ym) + N%( Yn.-
δ6Yn +
O%( Yo.- δ6Yo) + P%( Yp.- δ6Yp) + Q%(Yq - δ6Yq
) }/
(Yl.- δ6Yl + Ym.- δ6Ym + Yn.- δ6Yn + Yo.-
δ6Yo + Yp.- δ6Yp + Yq - δ6Yq)
= R62.
Y61 = Yj - δ6Yj + Yk.- δ6Yk.
P61 = Pj + Pk.
Z61 = Zj + Zk.
ΔY61 = ΔYj - δ6Yj + ΔYk.- δ6Yk.
ΔP61 = ΔPj + ΔPk.
ΔZ61 = ΔZj + ΔZk.
Y62 = Yl.- δ6Yl + Ym.- δ6Ym + Yn.- δ6Yn + Yo.-
δ6Yo + Yp.- δ6Yp + Yq - δ6Yq.
P62 = Pl + Pm + Pn + Po + Pp + Pq.
Z62 = Zl + Zm + Zn + Zo + Zp + Zq.
ΔY62 = ΔYl.- δ6Yl + ΔYm.- δ6Ym + ΔYn.-
δ6Yn + ΔYo.- δ6Yo + ΔYp.- δ6Yp + ΔYq.-
δ6Yq
ΔP62 = ΔPl + ΔPm + ΔPn + ΔPo + ΔPp +
ΔPq.
ΔZ62 = ΔZl + ΔZm + ΔZn + ΔZo + ΔZp +
ΔZq.
1. If Y62 - α(P62 - ΔP62) => 0, Y61- α(P61 - ΔP61)
=> 0, and γ6(P61 - ΔP61) < (P62 - ΔP62), then
ΔY62 = Y62 - αγ6(P61 - ΔP61) and
ΔY61 = Y61 - α(P61 - ΔP61).
2. If Y62 - α(P62 - ΔP62) => 0,
Y61 - α(P61 - ΔP61) => 0, and γ6(P61 - ΔP61) =>
(P62 - ΔP62), then ΔY62 = Y62 - α(P62 - ΔP62) and
ΔY61 = Y61 - (α/γ6)(P62 - ΔP62).
3. If Y62 - α(P62 - ΔP62) < 0, Y61 - α(P61 - ΔP61)
=> 0, and Y61 - α(P61 - ΔP61) => Y61 - (Y62/γ6), then
ΔY62 = Y62 - αγ6(P61 - ΔP61) and
ΔY61 = Y61 - α(P61 - ΔP61).
4. If Y62 - α(P62 - ΔP62) < 0, Y61 - (Y62/γ6) => 0, and
Y61 - α(P61 - ΔP61) <= Y61 - (Y62/γ6), then
ΔY62 = 0 and ΔY61 = Y61 - (Y62/γ6).
5. If Y61 - α(P61 - ΔP61) < 0, Y61 - (Y62/γ6) < 0, and
Y62 - α(P62 - ΔP62) <= Y62 - (γ6Y61), then
ΔY62 = Y62 - (γ6Y61) and ΔY61 = 0.
6. If Y61 - α(P61 - ΔP61) < 0, Y62 - α(P62 - ΔP62)
=> 0, and Y62 - α(P62 - ΔP62) => Y62 - (γ6Y61), then
ΔY62 = Y62 - α(P62 - ΔP62) and
ΔY61 = Y61 - (α/γ6)(P62 - ΔP62).
ΔYj = δ6Yj + [(Yj - δ6Yj )/Y61 ]ΔY61
ΔYk = δ6Yk + [(Yk - δ6Yk )/Y61 ]ΔY61
ΔYl = δ6Yl + [(Yl - δ6Yl )/Y62 ]ΔY62
ΔYm = δ6Ym + [(Ym - δ6Ym )/Y62 ]ΔY62
ΔYn = δ6Yn + [(Yn - δ6Yn )/Y62 ]ΔY62
ΔYo = δ6Yo + [(Yo - δ6Yo )/Y62 ]ΔY62
ΔYp = δ6Yp + [(Yp - δ6Yp )/Y62 ]ΔY62
ΔYq = δ6Yq + [(Yq - δ6Yq )/Y62 ]ΔY62
The purpose of the foregoing definitional provisions together with the
related provisions allocating Realized Losses and defining the Class Y and
Class Z Principal Distribution Amounts is to accomplish the following goals
in the following order of priority:
1. Making the ratio of (Y62 - ΔY62 ) to (Y61 - ΔY61 ) equal to
γ6 after taking account of the allocation Realized Losses and the
distributions that will be made through the end of the Distribution
Date to which such provisions relate and assuring that the Principal
Reduction Amount for each of the Class YAA, Class YBB, Class YCC, Class
YDD, Class XXX, Class YFF, Class YGG, Class YHH, Class ZAA, Class ZBB,
Class ZCC, Class ZDD, Class ZEE, Class ZFF, Class ZGG and Class ZHH
Certificates is greater than or equal to zero for such Distribution
Date;
2. Making the Class YAA Principal Balance less than or equal to 0.0005 of
the sum of the Class YAA and Class ZAA Principal Balances, the Class
YBB Principal Balance less than or equal to 0.0005 of the sum of the
Class YBB and Class ZBB Principal Balances, the Class YCC Principal
Balance less than or equal to 0.0005 of the sum of the Class YCC and
Class ZCC Principal Balances, the Class YDD Principal Balance less than
or equal to 0.0005 of the sum of the Class YDD and Class ZDD Principal
Balances, the Class XXX Principal Balance less than or equal to 0.0005
of the sum of the Class XXX and Class ZEE Principal Balances, the Class
YFF Principal Balance less than or equal to 0.0005 of the sum of the
Class YFF and Class ZFF Principal Balances, the Class YGG Principal
Balance less than or equal to 0.0005 of the sum of the Class YGG and
Class ZGG Principal Balances and the Class YHH Principal Balance less
than or equal to 0.0005 of the sum of the Class YHH and Class ZHH
Principal Balances in each case after giving effect to allocations of
Realized Losses and distributions to be made through the end of the
Distribution Date to which such provisions relate; and
3. Making the larger of (a) the fraction whose numerator is (Y62 -
ΔY62 ) and whose denominator is the sum of (Y62 - ΔY62) and
(Z62 - ΔZ62) and (b) the fraction whose numerator is (Y61 -
ΔY61) and whose denominator is the sum of (Y61 - ΔY61) and
(Z61 - ΔZ61) as large as possible while remaining less than or
equal to 0.0005.
In the event of a failure of the foregoing portion of the definition of
ClassY Principal Reduction Amount to accomplish both of goals 1 and 2 above,
the amounts thereof should be adjusted to so as to accomplish such goals
within the requirement that each REMIC I Y Principal Reduction Amount must be
less than or equal to the sum of (a) the Principal Realized Losses to be
allocated on the related Distribution Date for the related Pool remaining
after the allocation of such Realized Losses to the related class of
ratio-strip principal only certificates, if any, and (b) the remainder of the
Available Distribution Amount for the related Pool or after reduction thereof
by the distributions to be made on such Distribution Date (i) to the related
class of ratio-strip principal only certificates, if any, (ii) to the related
class of ratio-strip interest only certificates, if any, and (iii) in respect
of interest on the related Class Y and Class Z Certificates, or, if both of
such goals cannot be accomplished within such requirement, such adjustment as
is necessary shall be made to accomplish goal 1 within such requirement. In
the event of any conflict among the provisions of the definition of the REMIC
I Y Principal Reduction Amounts, such conflict shall be resolved on the basis
of the goals and their priorities set forth above within the requirement set
forth in the preceding sentence. If the formula allocations of ΔY61
among ΔYj and ΔYk or ΔY62 among ΔYl, ΔYm, ΔYn,
ΔYo, ΔYp and ΔYq cannot be achieved because one or more of
ΔYj, ΔYk, ΔYl, ΔYm, ΔYn, ΔYo, ΔYp and
ΔYq, as so defined is greater than the related one of ΔPj,
ΔPk, ΔPl, ΔPm, ΔPn, ΔPo, ΔPp and ΔPq, such
an allocation shall be made as close as possible to the formula allocation
within the requirement that ΔYj < ΔPj, ΔYk < ΔPk,
ΔYl < ΔPl, ΔYm < ΔPm, ΔYn < ΔPn, ΔYo <
ΔPo, ΔYp < ΔPp and ΔYq < ΔPq.
VII. If R<=K%, make the following additional definitions:
δ7Yk = 0, if R72< r72;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq )Yk/
{ (R72 - K%)Yk + (R72 - L%)Yl + (R72 - M%)Ym +
(R72 - N%)Yn + (R72 - O%)Yo + (R72 - P%)Yp }, if R72=>
r72 and R72=>P%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq )Yk/
{ (R72 - K%)Yk + (R72 - L%)Yl + (R72 - M%)Ym +
(R72 - N%)Yn + (R72 - O%)Yo }, if R72=>
r72 and P%>R72=>O%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq )Yk/
{ (R72 - K%)Yk + (R72 - L%)Yl +
(R72 - M%)Ym + (R72 - N%)Yn }, if R72=>
r72 and O%>R72=>N%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo +Yp + Yq )Yk/
{ (R72 - K%)Yk + (R72 - L%)Yl + (R72 - M%)Ym }, if
R72=> r72 and N%>R72=>M%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq )Yk/
{ (R72 - K%)Yk + (R72 - L%)Yl }, if R72=>
r72 and M%>R72=>L%; and
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq )/(R72 - K%), if
R72=> r72 and L%>R72=>K%.
δ7Yl = 0, if R72< r72
and R72=>L%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq )Yl/
{ (R72 - L%)Yl + (R72 - M%)Ym +
(R72 - N%)Yn + (R72 - O%)Yo +
(R72 - P%)Yp + (R72 - Q%)Yq }, if R72< r72
and L%>R72=>K%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq )Yl/
{ (R72 - K%)Yk + (R72 - L%)Yl + (R72 - M%)Ym +
(R72 - N%)Yn + (R72 - O%)Yo + (R72 - P%)Yp }, if R72=>
r72 and R72=>P%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq )Yl/
{ (R72 - K%)Yk + (R72 - L%)Yl + (R72 - M%)Ym +
(R72 - N%)Yn + (R72 - O%)Yo}, if R72=>
r72 and P%>R72=>O%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq )Yl/
{ (R72 - K%)Yk + (R72 - L%)Yl +
(R72 - M%)Ym + (R72 - N%)Yn }, if R72=>
r72 and O%>R72=>N%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo +Yp + Yq )Yl/
{ (R72 - K%)Yk + (R72 - L%)Yl + (R72 - M%)Ym }, if
R72=> r72 and N%>R72=>M%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq )Yl/
{ (R72 - K%)Yk + (R72 - L%)Yl }, if R72=>
r72 and M%>R72=>L%;
0, if R72=> r72 and R72<L%.
δ7Ym = 0, if R72< r72
and R72=>M%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq )Ym/
{ (R72 - M%)Ym + (R72 - N%)Yn + (R72 - O%)Yo +
(R72 - P%)Yp + (R72 - Q%)Yq }, if R72< r72
and L%<=R72<M%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq )Ym/
{ (R72 - L%)Yl + (R72 - M%)Ym + (R72 - N%)Yn +
(R72 - O%)Yo + (R72 - P%)Yp + (R72 - Q%)Yq }, if R72< r72
and K<=R72<L%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq )Ym/
{ (R72 - K%)Yk + (R72 - L%)Yl + (R72 - M%)Ym +
(R72 - N%)Yn + (R72 - O%)Yo + (R72 - P%)Yp }, if R72=>
r72 and R72=>P%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq )Ym/
{ (R72 - K%)Yk + (R72 - L%)Yl + (R72 - M%)Ym +
(R72 - N%)Yn + (R72 - O%)Yo}, if R72=>
r72 and P%=>R72=>O%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq )Ym/
{ (R72 - K%)Yk + (R72 - L%)Yl +
(R72 - M%)Ym + (R72 - N%)Yn }, if R72=>
r72 and O%>R72=>N%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo +Yp + Yq )Ym/
{ (R72 - K%)Yk + (R72 - L%)Yl + (R72 - M%)Ym }, if
R72=> r72 and N%>R72=>M%;
0, if R72=> r72 and R72<M%.
δ7Yn = 0, if R72< r72
and R72=>N%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq )Yn/
{ (R72 - N%)Yn + (R72 - O%)Yo +
(R72 - P%)Yp + (R72 - Q%)Yq }, if R72< r72
and M%<=R72<N%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq )Yn/
{ (R72 - M%)Ym + (R72 - N%)Yn + (R72 - O%)Yo +
(R72 - P%)Yp + (R72 - Q%)Yq }, if R72< r72
and L%<=R72<M%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq )Yn/
{ (R72 - L%)Yl + (R72 - M%)Ym + (R72 - N%)Yn +
(R72 - O%)Yo + (R72 - P%)Yp + (R72 - Q%)Yq }, if R72< r72
and K%<=R72<L%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq )Yn/
{ (R72 - K%)Yk + (R72 - L%)Yl + (R72 - M%)Ym +
(R72 - N%)Yn + (R72 - O%)Yo + (R72 - P%)Yp }, if R72=>
r72 and R72=>P%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq )Yn/
{ (R72 - K%)Yk + (R72 - L%)Yl +
(R72 - M%)Ym + (R72 - N%)Yn + (R72 - O%)Yo }, if R72=>
r72 and P%>R72=>O%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq )Yn/
{ (R72 - K%)Yk + (R72 - L%)Yl +
(R72 - M%)Ym + (R72 - N%)Yn }, if R72=>
r72 and O%>R72=>N%;
0, if R72=> r72 and R72<N%.
δ7Yo = 0, if R72< r72
and R72=>O%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq )Yo/
{ (R72 - O%)Yo + (R72 - P%)Yp + (R72 - Q%)Yq }, if R72< r72
and N%<=R72<O%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq )Yo/
{ (R72 - N%)Yn + (R72 - O%)Yo + (R72 - P%)Yp +
(R72 - Q%)Yq }, if R72< r72 and
M%<=R72<N%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq )Yo/
{ (R72 - M%)Ym + (R72 - N%)Yn + (R72 - O%)Yo +
(R72 - P%)Yp + (R72 - Q%)Yq }, if R72< r72
and L%<=R72<M%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq )Yo/
{ (R72 - L%)Yl + (R72 - M%)Ym + (R72 - N%)Yn +
(R72 - O%)Yo + (R72 - P%)Yp + (R72 - Q%)Yq }, if R72< r72
and K%<=R72<L%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq )Yo/
{ (R72 - K%)Yk + (R72 - L%)Yl + (R72 - M%)Ym +
(R72 - N%)Yn + (R72 - O%)Yo + (R72 - P%)Yp }, if R72=>
r72 and R72=>P%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq )Yo/
{ (R72 - K%)Yk + (R72 - L%)Yl + (R72 - M%)Ym +
(R72 - N%)Yn + (R72 - O%)Yo}, if R72=>
r72 and P%>R72=>O%;
0, if R72=> r72 and R72<O%.
δ7Yp = 0, if R72< r72
and R72=>P%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq)Yp/
{ (R72 - P%)Yp + (R72 - Q%)Yq }, if R72< r72
and O%<=R72<P%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq)Yp/
{ (R72 - O%)Yo + (R72 - P%)Yp + (R72 - Q%)Yq }, if R72< r72
and N%<=R72<O%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq)Yp/
{ (R72 - N%)Yn + (R72 - O%)Yo + (R72 - P%)Yp +
(R72 - Q%)Yq }, if R72< r72 and
M%<=R72<N%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq)Yp/
{ (R72 - M%)Ym + (R72 - N%)Yn +
(R72 - O%)Yo + (R72 - P%)Yp + (R72 - Q%)Yq }, if R72< r72
and L%<=R72<M%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq)Yp/
{ (R72 - L%)Yl + (R72 - M%)Ym + (R72 - N%)Yn +
(R72 - O%)Yo + (R72 - P%)Yp + (R72 - Q%)Yq }, if R72< r72
and K%<=R72<L%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq )Yp/
{ (R72 - K%)Yk + (R72 - L%)Yl + (R72 - M%)Ym +
(R72 - N%)Yn + (R72 - O%)Yo + (R72 - P%)Yp }, if R72=>
r72 and R72=>P%;
0, if R72=> r72 and R72<P%.
δ7Yq = (R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq)/(R72 - Q%),
if R72< r72 and P%<=R72;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq)Yq/
{ (R72 - P%)Yp + (R72 - Q%)Yq }, if R72< r72
and O%<=R72<P%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq)Yq/
{ (R72 - O%)Yo + (R72 - P%)Yp + (R72 - Q%)Yq }, if R72< r72
and N%<=R72<O%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq)Yq/
{ (R72 - N%)Yn + (R72 - O%)Yo + (R72 - P%)Yp +
(R72 - Q%)Yq }, if R72< r72 and
M%<=R72<N%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq)Yq/
{ (R72 - M%)Ym + (R72 - N%)Yn +
(R72 - O%)Yo + (R72 - P%)Yp + (R72 - Q%)Yq }, if R72< r72
and L%<=R72<M%;
(R72- r72)( Yk + Yl + Ym + Yn + Yo + Yp + Yq)Yq/
{ (R72 - L%)Yl + (R72 - M%)Ym + (R72 - N%)Yn +
(R72 - O%)Yo + (R72 - P%)Yp + (R72 - Q%)Yq }, if R72< r72
and K%<=R72<L%;
0, if R72=> r72.
δ7Yk, x0Xx, x0Xx, x0Xx, x0Xx, x0Xx and
δ7Yq are numbers respectively between Yk, Yl, Ym, Yn, Yo, Yp and
Yq and 0 such that
{ K%( Yk.- δ7Yk) + L%( Yl.- δ7Yl) + M%( Ym.-
δ7Ym) +
N%( Yn.- δ7Yn) + O%( Yo.- δ7Yo) + P%( Yp.-
δ7Yp) + Q%(Yq - δ7Yq ) }/
( Yk.- δ7Yk + Yl.- δ7Yl + Ym.- δ7Ym +
Yn.- δ7Yn + Yo.- δ7Yo + Yp.- δ7Yp + Yq - δ7Yq)
= R72.
Y72 = Yk.- δ7Yk + Yl.- δ7Yl + Ym.- δ7Ym + Yn.-
δ7Yn + Yo.- δ7Yo + Yp.- δ7Yp + Yq - δ7Yq
P72 = Pk + Pl + Pm + Pn + Po + Pp + Pq.
Z72 = Zk + Zl + Zm + Zn + Zo + Zp + Zq.
ΔY72 = ΔYk.- δ7Yk + ΔYl.- δ7Yl + ΔYm.-
δ7Ym + ΔYn.- δ7Yn + ΔYo.- δ7Yo + ΔYp.-
δ7Yp + ΔYq.- δ7Yq
ΔP72 = ΔPk + ΔPl + ΔPm + ΔPn + ΔPo +
ΔPp + ΔPq.
ΔZ72 = ΔZk + ΔZl + ΔZm + ΔZn + ΔZo +
ΔZp + ΔZq.
1. If Y72 - α(P72 - ΔP72) => 0, Yj- α(Pj - ΔPj) =>
0, and γ7(Pj - ΔPj) < (P72 - ΔP72), then
ΔY72 = Y72 - αγ7(Pj - ΔPj) and
ΔYj = Yj - α(Pj - ΔPj).
2. If Y72 - α(P72 - ΔP72) => 0, Yj - α(Pj - ΔPj)
=> 0, and γ7(Pj - ΔPj) => (P72 - ΔP72), then
ΔY72 = Y72 - α(P72 - ΔP72) and
ΔYj = Yj - (α/γ7)(P72 - ΔP72).
3. If Y72 - α(P72 - ΔP72) < 0, Yj - α(Pj - ΔPj) =>
0, and Yj - α(Pj - ΔPj) => Yj - (Y72/γ7), then
ΔY72 = Y72 - αγ7(Pj - ΔPj) and
ΔYj = Yj - α(Pj - ΔPj).
4. If Y72 - α(P72 - ΔP72) < 0, Yj - (Y72/γ7) => 0, and
Yj - α(Pj - ΔPj) <= Yj - (Y72/γ7), then ΔY72 = 0
and ΔYj = Yj - (Y72/γ7).
5. If Yj - α(Pj - ΔPj) < 0, Yj - (Y72/γ7) < 0, and
Y72 - α(P72 - ΔP72) <= Y72 - (γ7Yj), then
ΔY72 = Y72 - (γ7Yj) and ΔYj = 0.
6. If Yj - α(Pj - ΔPj) < 0, Y72 - α(P72 - ΔP72) =>
0, and Y72 - α(P72 - ΔP72) => Y72 - (γ7Yj), then
ΔY72 = Y72 - α(P72 - ΔP72) and
ΔYj = Yj - (α/γ7)(P72 - ΔP72).
ΔYk = δ7Yk + [(Yk - δ7Yk )/Y72 ]ΔY72
ΔYl = δ7Yl + [(Yl - δ7Yl )/Y72 ]ΔY72
ΔYm = δ7Ym + [(Ym - δ7Ym )/Y72 ]ΔY72
ΔYn = δ7Yn + [(Yn - δ7Yn )/Y72 ]ΔY72
ΔYo = δ7Yo + [(Yo - δ7Yo )/Y72 ]ΔY72
ΔYp = δ7Yp + [(Yp - δ7Yp )/Y72 ]ΔY72
ΔYq = δ7Yq + [(Yq - δ7Yq )/Y72 ]ΔY72
The purpose of the foregoing definitional provisions together with the
related provisions allocating Realized Losses and defining the Class Y and
Class Z Principal Distribution Amounts is to accomplish the following goals
in the following order of priority:
1. Making the ratio of (Y72 - ΔY72 ) to (Yj - ΔYj ) equal to
γ7 after taking account of the allocation Realized Losses and the
distributions that will be made through the end of the Distribution
Date to which such provisions relate and assuring that the Principal
Reduction Amount for each of the Class YAA, Class YBB, Class YCC, Class
YDD, Class XXX, Class YFF, Class YGG, Class YHH, Class ZAA, Class ZBB,
Class ZCC, Class ZDD, Class ZEE, Class ZFF, Class ZGG and Class ZHH
Certificates is greater than or equal to zero for such Distribution
Date;
2. Making the Class YAA Principal Balance less than or equal to 0.0005 of
the sum of the Class YAA and Class ZAA Principal Balances, the Class
YBB Principal Balance less than or equal to 0.0005 of the sum of the
Class YBB and Class ZBB Principal Balances, the Class YCC Principal
Balance less than or equal to 0.0005 of the sum of the Class YCC and
Class ZCC Principal Balances, the Class YDD Principal Balance less than
or equal to 0.0005 of the sum of the Class YDD and Class ZDD Principal
Balances, the Class XXX Principal Balance less than or equal to 0.0005
of the sum of the Class XXX and Class ZEE Principal Balances, the Class
YFF Principal Balance less than or equal to 0.0005 of the sum of the
Class YFF and Class ZFF Principal Balances, the Class YGG Principal
Balance less than or equal to 0.0005 of the sum of the Class YGG and
Class ZGG Principal Balances and the Class YHH Principal Balance less
than or equal to 0.0005 of the sum of the Class YHH and Class ZHH
Principal Balances in each case after giving effect to allocations of
Realized Losses and distributions to be made through the end of the
Distribution Date to which such provisions relate; and
3. Making the larger of (a) the fraction whose numerator is (Y72 -
ΔY72 ) and whose denominator is the sum of (Y72 - ΔY72) and
(Z72 - ΔZ72) and (b) the fraction whose numerator is (Yj -
ΔYj) and whose denominator is the sum of (Yj - ΔYj) and (Zj -
ΔZj) as large as possible while remaining less than or equal to
0.0005.
In the event of a failure of the foregoing portion of the definition of
ClassY Principal Reduction Amount to accomplish both of goals 1 and 2 above,
the amounts thereof should be adjusted to so as to accomplish such goals
within the requirement that each REMIC I Y Principal Reduction Amount must be
less than or equal to the sum of (a) the Principal Realized Losses to be
allocated on the related Distribution Date for the related Pool remaining
after the allocation of such Realized Losses to the related class of
ratio-strip principal only certificates, if any, and (b) the remainder of the
Available Distribution Amount for the related Pool or after reduction thereof
by the distributions to be made on such Distribution Date (i) to the related
class of ratio-strip principal only certificates, if any, (ii) to the related
class of ratio-strip interest only certificates, if any, and (iii) in respect
of interest on the related Class Y and Class Z Certificates, or, if both of
such goals cannot be accomplished within such requirement, such adjustment as
is necessary shall be made to accomplish goal 1 within such requirement. In
the event of any conflict among the provisions of the definition of the REMIC
I Y Principal Reduction Amounts, such conflict shall be resolved on the basis
of the goals and their priorities set forth above within the requirement set
forth in the preceding sentence. If the formula allocation of ΔY72
among ΔYk, ΔYl, ΔYm, ΔYn, ΔYo, ΔYp and ΔYq
cannot be achieved because one or more of ΔYk, ΔYl, ΔYm,
ΔYn, ΔYo, ΔYp and ΔYq, as so defined is greater than the
related one of ΔPk, ΔPl, ΔPm, ΔPn, ΔPo, ΔPp and
ΔPq, such an allocation shall be made as close as possible to the
formula allocation within the requirement that ΔYk < ΔPk, ΔYl
< ΔPl, ΔYm < ΔPm, ΔYn < ΔPn, ΔYo < ΔPo,
ΔYp < ΔPp and ΔYq < ΔPq.
[Method of calculating initial balance of the Class Y and Class Z interest to
come]
NOTES:
1. Classes YAA and ZAA are related to the Group AA loans. The sum of the
Class Principal Balances for the Class YAA and Class ZAA Certificates is
equal to the aggregate stated principal balance of the Group AA Loans [minus
the Class Principal Balance of the Class AA-P Certificates]. Classes YCC and
ZCC are related to the Group CC loans. The sum of the Class Principal
Balances for the Class YCC and Class ZCC Certificates is equal to the
aggregate stated principal balance of the Group CC Loans [minus the Class
Principal Balance of the Class CC-P Certificates]. Classes YBB and ZBB are
related to the Group BB loans. The sum of the Class Principal Balances for
the Class YBB and Class ZBB Certificates is equal to the aggregate stated
principal balance of the Group BB Loans [minus the Class Principal Balance of
the Class BB-P Certificates]. The Y and Z classes will be principal and
interest classes bearing interest at the pass-through rate for the related
loan group.
2. The Class CB pass-through rate is the weighted average of the
pass-through rates on the Class YAA, Class YCC and Class YBB Certificates.
