EXHIBIT 10.1
EXECUTION COPY
RESIDENTIAL ASSET MORTGAGE PRODUCTS, INC.,
as Purchaser,
GMAC MORTGAGE CORPORATION,
as Seller and Servicer,
WALNUT GROVE HOME EQUITY LOAN TRUST 2000-A,
as Seller,
GMACM HOME EQUITY LOAN TRUST 2000-HE4,
as Issuer,
and
XXXXX FARGO BANK MINNESOTA, N.A.,
as Indenture Trustee
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MORTGAGE LOAN PURCHASE AGREEMENT
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Dated as of November 29, 2000
TABLE OF CONTENTS
Page
ARTICLE I DEFINITIONS...............................................................2
Section 1.1 Definitions.........................................................2
Section 1.2 Other Definitional Provisions.......................................2
ARTICLE II SALE OF MORTGAGE LOANS AND RELATED PROVISIONS.............................3
Section 2.1 Sale of Initial Mortgage Loans......................................3
Section 2.2 Sale of Subsequent Mortgage Loans...................................7
Section 2.3 Payment of Purchase Price..........................................10
Section 2.4 Variable Funding Notes on or after the Closing Date................11
Section 2.5 Draws During Rapid Amortization Period.............................11
ARTICLE III REPRESENTATIONS AND WARRANTIES; REMEDIES FOR BREACH......................12
Section 3.1 GMACM Representations and Warranties...............................12
ARTICLE IV SELLERS' COVENANTS.......................................................21
Section 4.1 Covenants of the Sellers...........................................21
ARTICLE V SERVICING................................................................22
Section 5.1 Servicing..........................................................22
ARTICLE VI INDEMNIFICATION BY THE SELLERS WITH RESPECT TO THE MORTGAGE LOANS........22
Section 6.1 Limitation on Liability of the Sellers.............................22
ARTICLE VII TERMINATION..............................................................22
Section 7.1 Termination........................................................22
ARTICLE VIII MISCELLANEOUS PROVISIONS.................................................23
Section 8.1 Amendment..........................................................23
Section 8.2 GOVERNING LAW......................................................23
Section 8.3 Notices............................................................23
Section 8.4 Severability of Provisions.........................................24
Section 8.5 Relationship of Parties............................................24
Section 8.6 Counterparts.......................................................24
Section 8.7 Further Agreements.................................................24
Section 8.8 Intention of the Parties...........................................24
Section 8.9 Successors and Assigns; Assignment of this Agreement...............25
Section 8.10 Survival...........................................................25
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Section 8.11 Third Party Beneficiary............................................26
EXHIBIT 1 MORTGAGE LOAN SCHEDULE...........................................................0
EXHIBIT 2 FORM OF SUBSEQUENT TRANSFER AGREEMENT............................................1
EXHIBIT 3 FORM OF ADDITION NOTICE..........................................................2
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This Mortgage Loan Purchase Agreement (the "Agreement"), dated as of
November 29, 2000, is made among GMAC Mortgage Corporation, as seller ("GMACM")
and as servicer (in such capacity, the "Servicer"), Walnut Grove Home Equity
Loan Trust 2000-A, as seller ("WG Trust" and, together with GMACM, each a
"Seller" and collectively, the "Sellers"), Residential Asset Mortgage Products,
Inc., as purchaser (the "Purchaser"), GMACM Home Equity Loan Trust 2000-HE4, as
issuer (the "Issuer"), and Xxxxx Fargo Bank Minnesota, N.A., as indenture
trustee (the "Indenture Trustee").
WITNESSETH:
WHEREAS, GMACM, in the ordinary course of its business acquires and
originates mortgage loans and acquired or originated all of the mortgage loans
listed on the Mortgage Loan Schedule attached as Exhibit 1 hereto (the "Initial
Mortgage Loans");
WHEREAS, GMACM sold a portion of the Initial Mortgage Loans (the "WG
Trust Initial Mortgage Loans") and intends to sell a portion of the Subsequent
Mortgage Loans to be sold by WG Trust hereunder, to Walnut Grove Funding, Inc.
("Walnut Grove"), pursuant to a Mortgage Loan Purchase Agreement (the "Walnut
Grove Purchase Agreement"), dated as of June 1, 2000, among Walnut Grove, as
purchaser, GMACM, as seller, WG Trust, as Issuer and Bank One, National
Association, as trustee (each date of sale, a "Prior Transfer Date");
WHEREAS, Walnut Grove sold the WG Trust Initial Mortgage Loans to WG
Trust pursuant to a Trust Agreement, dated as of June 1, 2000, between Walnut
Grove, as depositor and Wilmington Trust Company, as owner trustee;
WHEREAS, GMACM owns the Cut-Off Date Principal Balances and the Related
Documents for the portion of Initial Mortgage Loans identified on the Mortgage
Loan Schedule -A attached as Exhibit 1-A hereto (the "GMACM Initial Mortgage
Loans"), including rights to (a) any property acquired by foreclosure or deed in
lieu of foreclosure or otherwise, and (b) the proceeds of any insurance policies
covering the GMACM Initial Mortgage Loans;
WHEREAS, WG Trust owns the Cut-Off Date Principal Balances and the
Related Documents for the WG Trust Initial Mortgage Loans identified on the
Mortgage Loan Schedule -B attached as Exhibit 1-B hereto, including rights to
(a) any property acquired by foreclosure or deed in lieu of foreclosure or
otherwise, and (b) the proceeds of any insurance policies covering the WG Trust
Initial Mortgage Loans;
WHEREAS, the parties hereto desire that: (i) GMACM sell the Cut-Off Date
Principal Balances of the GMACM Initial Mortgage Loans to the Purchaser on the
Closing Date pursuant to the terms of this Agreement together with the Related
Documents, and thereafter all Additional Balances relating to the Initial
Mortgage Loans created on or after the Cut-Off Date and prior to the Rapid
Amortization Period, (ii) WG Trust sell the Cut-Off Date Principal Balances of
the WG Trust Initial Mortgage Loans to the Purchaser on the Closing Date
pursuant to the terms of this Agreement, together with the Related Documents,
including all of its rights to the Additional Balances relating to the WG Trust
Initial Mortgage Loans created on or after the Cut-Off Date, (iii) the Sellers
may sell Subsequent Mortgage Loans to the Issuer on one or more Subsequent
Transfer Dates pursuant to the terms of the related Subsequent Transfer
Agreement, and (iv) each Seller make certain representations and warranties on
the Closing Date and on each Subsequent Transfer Date;
WHEREAS, pursuant to the Trust Agreement, the Purchaser will sell the
Initial Mortgage Loans and transfer all of its rights under this Agreement to
the Issuer on the Closing Date;
WHEREAS, pursuant to the terms of the Servicing Agreement, the Servicer
will service the Mortgage Loans;
WHEREAS, pursuant to the terms of the Trust Agreement, the Issuer will
issue the Certificates;
WHEREAS, pursuant to the terms of the Indenture, the Issuer will issue the
Notes, secured by the Trust Estate;
NOW, THEREFORE, in consideration of the mutual covenants herein
contained, the parties hereto agree as follows:
ARTICLE I
DEFINITIONS
Section 1.1 Definitions. For all purposes of this Agreement, except as otherwise
expressly provided herein or unless the context otherwise requires, capitalized
terms not otherwise defined herein shall have the meanings assigned to such
terms in the Definitions contained in Appendix A to the indenture dated as of
November 29, 2000 (the "Indenture"), between the Issuer and the Indenture
Trustee, which is incorporated by reference herein. All other capitalized terms
used herein shall have the meanings specified herein.
Section 1.2 Other Definitional Provisions. All terms defined in this Agreement
shall have the defined meanings when used in any certificate or other document
made or delivered pursuant hereto unless otherwise defined therein.
As used in this Agreement and in any certificate or other document made
or delivered pursuant hereto or thereto, accounting terms not defined in this
Agreement or in any such certificate or other document, and accounting terms
partly defined in this Agreement or in any such certificate or other document,
to the extent not defined, shall have the respective meanings given to them
under generally accepted accounting principles. To the extent that the
definitions of accounting terms in this Agreement or in any such certificate or
other document are inconsistent with the meanings of such terms under generally
accepted accounting principles, the definitions contained in this Agreement or
in any such certificate or other document shall control.
The words "hereof," "herein," "hereunder" and words of similar import
when used in this Agreement shall refer to this Agreement as a whole and not to
any particular provision of this Agreement; Section and Exhibit references
contained in this Agreement are references to Sections and Exhibits in or to
this Agreement unless otherwise specified; the term "including" shall mean
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"including without limitation"; "or" shall include "and/or"; and the term
"proceeds" shall have the meaning ascribed thereto in the UCC.
The definitions contained in this Agreement are applicable to the
singular as well as the plural forms of such terms and to the masculine as well
as the feminine and neuter genders of such terms.
Any agreement, instrument or statute defined or referred to herein or in
any instrument or certificate delivered in connection herewith means such
agreement, instrument or statute as from time to time amended, modified or
supplemented and includes (in the case of agreements or instruments) references
to all attachments thereto and instruments incorporated therein; references to a
Person are also to its permitted successors and assigns.
ARTICLE II
SALE OF MORTGAGE LOANS AND RELATED PROVISIONS
Section 2.1 Sale of Initial Mortgage Loans.
(a) GMACM, by the execution and delivery of this Agreement, does hereby sell,
assign, set over, and otherwise convey to the Purchaser, without recourse, all
of its right, title and interest in, to and under the following, wherever
located: (i) the GMACM Initial Mortgage Loans (including the Cut-Off Date
Principal Balances now existing and all Additional Balances thereafter arising
thereunder to and including the date immediately preceding the commencement of
the Rapid Amortization Period relating thereto; provided, however, that any
Principal Balance represented by a Draw made during the Rapid Amortization
Period and interest thereon and money due or to become due in respect thereof
will not be or deemed to be transferred to the Purchaser, and GMACM in such
event shall retain ownership of each Principal Balance represented by each such
Draw and interest thereon and money due or to become due in respect thereof),
all interest accruing thereon, all monies due or to become due thereon, and all
collections in respect thereof received on or after the Cut-Off Date (other than
interest thereon in respect of any period prior to the Cut-Off Date); (ii) the
interest of GMACM in any insurance policies in respect of the GMACM Initial
Mortgage Loans; and (iii) all proceeds of the foregoing; provided, however, that
the Purchaser does not assume the obligation under each Loan Agreement relating
to a HELOC to fund Draws to the Mortgagor thereunder, and the Purchaser shall
not be obligated or permitted to fund any such Draws, it being agreed that GMACM
will retain the obligation to fund future Draws. Such conveyance shall be deemed
to be made: (1) with respect to the Cut-Off Date Principal Balances, as of the
Closing Date; and (2) with respect to the amount of each Additional Balance
created on or after the Cut-Off Date and prior to the commencement of the Rapid
Amortization Period, as of the later of the Closing Date and the date that the
corresponding Draw was made pursuant to the related Loan Agreement, subject to
the receipt by GMACM of consideration therefor as provided herein under clause
(a) of Section 2.3.
(b) WG Trust, by the execution and delivery of this Agreement, does hereby sell,
assign, set over, and otherwise convey to the Purchaser, without recourse, all
of its right, title and interest in, to and under the following, wherever
located: (i) the WG Trust Initial Mortgage Loans (including the Cut-Off Date
Principal Balances now existing and its rights to acquire all Additional
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Balances and Excluded Amounts thereafter arising thereunder, all interest
accruing thereon, all monies due or to become due thereon, and all collections
in respect thereof received on or after the Cut-Off Date (other than interest
thereon in respect of any period prior to the Cut-Off Date); (ii) the interest
of WG Trust in any insurance policies in respect of the WG Trust Initial
Mortgage Loans; and (iii) all proceeds of the foregoing; provided, however, that
the Purchaser does not assume the obligation under each Loan Agreement relating
to a HELOC to fund Draws to the Mortgagor thereunder, and the Purchaser shall
not be obligated or permitted to fund any such Draws, it being agreed that GMACM
has retained the obligation to fund future Draws pursuant to the Walnut Grove
Purchase Agreement. Such conveyance shall be deemed to be made as of the Closing
Date.
Each Additional Balance with respect to a WG Trust Initial Mortgage Loan
created on or after the Cut-Off Date and prior to the commencement of the Rapid
Amortization Period will be deemed to have been conveyed by GMACM to the
Purchaser as of the later of the Closing Date and the date that the
corresponding Draw was made pursuant to the related Loan Agreement, subject to
the receipt by GMACM of consideration therefor as provided herein under clause
(a) of Section 2.3. Any Principal Balance of a WG Initial Mortgage Loan
represented by a Draw funded by GMACM and made during the Rapid Amortization
Period, including interest thereon and money due or to become due in respect
thereof, will not be deemed to be transferred to the Purchaser, and GMACM in
such event shall retain ownership of each Principal Balance represented by each
such Draw and interest thereon and money due or to become due in respect
thereof.
In addition, the Issuer shall deposit with the Indenture Trustee from
proceeds of the issuance of the Securities on the Closing Date (i) the Original
Pre-Funded Amount for deposit in the Pre-Funding Account and (ii) the Interest
Coverage Amount for deposit in the Capitalized Interest Account.
(c) In connection with the conveyance by GMACM of the GMACM Initial Mortgage
Loans and any Subsequent Mortgage Loans, GMACM further agrees, at its own
expense, on or prior to the Closing Date with respect to the Principal Balances
of the GMACM Initial Mortgage Loans and on or prior to the related Subsequent
Cut-Off Date in the case of any Subsequent Mortgage Loans sold by it, to
indicate in its books and records that the GMACM Initial Mortgage Loans have
been sold to the Purchaser pursuant to this Agreement, and, in the case of such
Subsequent Mortgage Loans, to the Issuer pursuant to the related Subsequent
Transfer Agreement, and to deliver to the Purchaser true and complete lists of
all of the Mortgage Loans specifying for each Mortgage Loan (i) its account
number, (ii) its Cut-Off Date Principal Balance or Subsequent Cut-Off Date
Principal Balance and (iii) the Loan Group or Loan Groups to which such Mortgage
Loans relate. Mortgage Loan Schedule -A, which forms part of the Mortgage Loan
Schedule, shall be marked as Exhibit 1-A to this Agreement and is hereby
incorporated into and made a part of this Agreement.
(d) In connection with the conveyance by WG Trust of the WG Trust Initial
Mortgage Loans and any Subsequent Mortgage Loans, WG Trust further agrees, at
its own expense, on or prior to the Closing Date with respect to the Principal
Balances of the WG Trust Initial Mortgage Loans and on or prior to the related
Subsequent Cut-Off Date in the case of any Subsequent Mortgage Loans sold by it,
to indicate in its books and records that the WG Trust Initial Mortgage Loans
have been sold to the Purchaser pursuant to this Agreement, and, in the case of
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such Subsequent Mortgage Loans, to the Issuer pursuant to the related Subsequent
Transfer Agreement. GMACM, as Servicer of the Mortgage Loans sold by WG Trust,
agrees to deliver to the Purchaser true and complete lists of all of the
Mortgage Loans sold by WG Trust specifying for each Mortgage Loan (i) its
account number, (ii) its Cut-Off Date Principal Balance and (iii) the Loan Group
or Loan Groups to which such Mortgage Loans relate. Mortgage Loan Schedule -B,
which forms part of the Mortgage Loan Schedule, shall be marked as Exhibit 1-B
to this Agreement and is hereby incorporated into and made a part of this
Agreement.
(e) In connection with the conveyance by GMACM of the GMACM Initial Mortgage
Loans and any Subsequent Mortgage Loans sold by it and the conveyance by WG
Trust of the WG Trust Initial Mortgage Loans and any Subsequent Mortgage Loans
sold by it, GMACM shall on behalf of the Purchaser deliver to, and deposit with
the Custodian, at least five (5) Business Days before the Closing Date in the
case of an Initial Mortgage Loan, and, on behalf of the Issuer, three (3)
Business Days prior to the related Subsequent Transfer Date in the case of a
Subsequent Mortgage Loan, with respect to (i) below, or within 90 days of the
Closing Date or the Subsequent Transfer Date, as the case may be, with respect
to (ii) through (v) below, the following documents or instruments with respect
to each related Mortgage Loan of the related Seller:
(i) the original Loan Agreement endorsed or assigned without recourse in blank
(which endorsement shall contain either an original signature or a facsimile
signature of an authorized officer of GMACM) or, with respect to any Mortgage
Loan as to which the original Loan Agreement has been permanently lost or
destroyed and has not been replaced, a Lost Note Affidavit;
(ii) the original Mortgage with evidence of recording thereon, or, if the
original Mortgage has not yet been returned from the public recording office, a
copy of the original Mortgage certified by GMACM that such Mortgage has been
sent for recording, or a county certified copy of such Mortgage in the event the
recording office keeps the original or if the original is lost;
(iii) assignments (which may be included in one or more blanket assignments if
permitted by applicable law) of the Mortgage in recordable form from GMACM to
"Xxxxx Fargo Bank Minnesota, N.A., as Indenture Trustee under that certain
Indenture dated as of November 29, 2000, for GMACM Home Equity Loan Trust
2000-HE4, Mortgage Loan-Backed Term Notes" c/o the Servicer at an address
specified by the Servicer;
(iv) originals of any intervening assignments of the Mortgage from the
originator to GMACM, with evidence of recording thereon, or, if the original of
any such intervening assignment has not yet been returned from the public
recording office, a copy of such original intervening assignment certified by
GMACM that such original intervening assignment has been sent for recording; and
(v) a true and correct copy of each assumption, modification, consolidation or
substitution agreement, if any, relating to such Mortgage Loan.
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Within the time period for the review of each Mortgage File set forth in
Section 2.2 of the Custodial Agreement, if a material defect in any Mortgage
File is discovered which may materially and adversely affect the value of the
related Mortgage Loan, or the interests of the Indenture Trustee (as pledgee of
the Mortgage Loans), the Noteholders, the Certificateholders or the Enhancer in
such Mortgage Loan, including GMACM's failure to deliver any document required
to be delivered to the Custodian on behalf of the Indenture Trustee (provided,
that a Mortgage File will not be deemed to contain a defect for an unrecorded
assignment under clause (iv) above if GMACM has submitted such assignment for
recording pursuant to the terms of the following paragraph), GMACM shall cure
such defect, repurchase the related Mortgage Loan at the Repurchase Price or
substitute an Eligible Substitute Loan therefor upon the same terms and
conditions set forth in Section 3.1 hereof for breaches of representations and
warranties as to the Mortgage Loans.
In instances where an original Mortgage or any original intervening
assignment of Mortgage was not, in accordance with clauses (ii) or (iv) above,
delivered by GMACM to the Custodian contemporaneously with the execution and
delivery of this Agreement, GMACM will deliver or cause to be delivered the
originals or certified copies of such documents to the Custodian promptly upon
receipt thereof.
Upon sale of the Initial Mortgage Loans, the ownership of each Loan
Agreement, each related Mortgage and the contents of the related Mortgage File
shall be vested in the Purchaser and the ownership of all records and documents
with respect to the Initial Mortgage Loans that are prepared by or that come
into the possession of either Seller, as a seller of the Initial Mortgage Loans
hereunder or by GMACM in its capacity as Servicer under the Servicing Agreement
shall immediately vest in the Purchaser, and shall be promptly delivered to the
Servicer in the case of documents in possession of WG Trust and retained and
maintained in trust by GMACM as the Servicer at the will of the Purchaser, in
such custodial capacity only. In the event that any original document held by
GMACM hereunder in its capacity as Servicer is required pursuant to the terms of
this Section to be part of a Mortgage File, such document shall be delivered
promptly to the Custodian. Each Seller's records will accurately reflect the
sale of each Initial Mortgage Loan sold by it to the Purchaser.
The Purchaser hereby acknowledges its acceptance of all right, title and
interest to the property conveyed to it pursuant to this Section 2.1.
(f) The parties hereto intend that the transactions set forth herein constitute
a sale by the Sellers to the Purchaser of each of the Sellers' right, title and
interest in and to their respective Initial Mortgage Loans and other property as
and to the extent described above. In the event the transactions set forth
herein are deemed not to be a sale, each Seller hereby grants to the Purchaser a
security interest in all of such Seller's right, title and interest in, to and
under all accounts, chattel papers, general intangibles, contract rights,
certificates of deposit, deposit accounts, instruments, documents, letters of
credit, money, advices of credit, investment property, goods and other property
consisting of, arising under or related to the Initial Mortgage Loans and such
other property, to secure all of such Seller's obligations hereunder, and this
Agreement shall and hereby does constitute a security agreement under applicable
law. Each Seller agrees to take or cause to be taken such actions and to execute
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such documents, including without limitation the filing of any continuation
statements with respect to the UCC-1 financing statements filed with respect to
the Initial Mortgage Loans by the Purchaser on the Closing Date, and any
amendments thereto required to reflect a change in the name or corporate
structure of such Seller or the filing of any additional UCC-1 financing
statements due to the change in the principal office or jurisdiction of
incorporation of such Seller, as are necessary to perfect and protect the
Purchaser's and its assignees' interests in each Initial Mortgage Loan and the
proceeds thereof. The Servicer shall file any such continuation statements on a
timely basis.
Section 2.2 Sale of Subsequent Mortgage Loans.
(a) Subject to the conditions set forth in paragraphs (b) and (c) below (the
satisfaction of which (other than the conditions specified in paragraphs (b)(i),
(b)(ii), (b)(iii), (b)(vi), (b)(vii) and (c)(iii)) shall be evidenced by an
Officer's Certificate of the related Seller dated the date of the related
Subsequent Transfer Date), in consideration of the Issuer's payment of the
purchase price provided for in Section 2.3 on one or more Subsequent Transfer
Dates using amounts on deposit in the Pre-Funding Account, the Custodial Account
(to the extent permitted by the Servicing Agreement) or the Funding Account,
each Seller may, on the related Subsequent Transfer Date, sell, transfer,
assign, set over and convey without recourse to the Issuer but subject to the
other terms and provisions of this Agreement all of the right, title and
interest of such Seller in and to (i) Subsequent Mortgage Loans identified on
the related Mortgage Loan Schedule attached to the related Subsequent Transfer
Agreement delivered by such Seller on such Subsequent Transfer Date (including
the Subsequent Cut-Off Date Principal Balance then existing and all Additional
Balances and Excluded Amounts thereafter arising thereunder to and including the
date immediately preceding the commencement of the Rapid Amortization Period);
provided that Excluded Amounts shall not be conveyed to the Issuer and shall be
retained by GMACM, (ii) all money due or to become due thereon and after the
related Subsequent Cut-Off Date and (iii) all items with respect to such
Subsequent Mortgage Loans to be delivered pursuant to Section 2.1 above and the
other items in the related Mortgage Files; provided, however, that the Seller of
a Subsequent Mortgage Loan reserves and retains all right, title and interest in
and to principal received and interest accruing on such Subsequent Mortgage Loan
prior to the related Subsequent Cut-Off Date. Any transfer to the Issuer by a
Seller of Subsequent Mortgage Loans shall be absolute, and is intended by the
Issuer and such Seller to constitute and to be treated as a sale of such
Subsequent Mortgage Loans by such Seller to the Issuer. In the event that any
such transaction is deemed not to be a sale, GMACM and WG Trust hereby grants to
the Issuer as of each Subsequent Transfer Date a security interest in all of
GMACM's or WG Trust's, as applicable, right, title and interest in, to and under
all accounts, chattel papers, general intangibles, contract rights, certificates
of deposit, deposit accounts, instruments, documents, letters of credit, money,
advices of credit, investment property, goods and other property consisting of,
arising under or related to the related Subsequent Mortgage Loans and such other
property, to secure all of GMACM's or WG Trust's obligations hereunder, and this
Agreement shall constitute a security agreement under applicable law. Each
Seller agrees to take or cause to be taken such actions and to execute such
documents, including the filing of all necessary UCC-1 financing statements
filed in the State of Delaware and the Commonwealth of Pennsylvania (which shall
be submitted for filing as of the related Subsequent Transfer Date), any
continuation statements with respect thereto and any amendments thereto required
to reflect a change in the name or corporate structure of such Seller or the
filing of any additional UCC-1 financing statements due to the change in the
principal office of such Seller, as are necessary to perfect and protect the
interests of the Issuer and its assignees in each Subsequent Mortgage Loan and
the proceeds thereof. The Servicer shall file any such continuation statements
on a timely basis.
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The Issuer on each Subsequent Transfer Date shall acknowledge its
acceptance of all right, title and interest to the related Subsequent Mortgage
Loans and other property, existing on the Subsequent Transfer Date and
thereafter created, conveyed to it pursuant to this Section 2.2.
The Issuer shall be entitled to all scheduled principal payments due
after each Subsequent Cut-Off Date, all other payments of principal due and
collected after each Subsequent Cut-Off Date, and all payments of interest on
any related Subsequent Mortgage Loans, minus that portion of any such interest
payment that is allocable to the period prior to the related Subsequent Cut-Off
Date and any payment relating to any Excluded Amounts as provided in Section
2.5. No scheduled payments of principal due on Subsequent Mortgage Loans on or
before the related Subsequent Cut-Off Date and collected after such Subsequent
Cut-Off Date shall belong to the Issuer pursuant to the terms of this Agreement.
(b) Either Seller may transfer to the Issuer Subsequent Mortgage Loans and the
other property and rights related thereto described in Section 2.2(a) above
during the Pre-Funding Period, and the Issuer shall cause to be released funds
from the Pre-Funding Account or during the Revolving Period, upon the release of
funds on deposit in the Custodial Account or the Funding Account, respectively,
in accordance with the Servicing Agreement, only upon the satisfaction of each
of the following conditions on or prior to the related Subsequent Transfer Date:
(i) such Seller or GMACM, as Servicer, shall have provided the Indenture
Trustee, the Rating Agencies and the Enhancer with a timely Addition Notice
substantially in the form of Exhibit 3, which notice shall be given no later
than seven Business Days prior to the related Subsequent Transfer Date, and
shall designate the Subsequent Mortgage Loans to be sold to the Issuer, the
aggregate Principal Balance of such Subsequent Mortgage Loans as of the related
Subsequent Cut-Off Date, the Loan Group or Groups to which such Subsequent
Mortgage Loans have been assigned, which shall be the Loan Group or Groups to
which the money on deposit in the Pre-Funding Account relates or from which the
Collections used to pay the Purchase Price of such Mortgage Loans were derived
and any other information reasonably requested by the Indenture Trustee or the
Enhancer with respect to such Subsequent Mortgage Loans;
(ii) such Seller shall have delivered to the Indenture Trustee and the Enhancer
a duly executed Subsequent Transfer Agreement substantially in the form of
Exhibit 2, (A) confirming the satisfaction of each condition precedent and
representations specified in this Section 2.2(b) and in Section 2.2(c) and in
the related Subsequent Transfer Agreement and (B) including a Mortgage Loan
Schedule listing the Subsequent Mortgage Loans;
(iii) as of each Subsequent Transfer Date, as evidenced by delivery to the
Indenture Trustee of the Subsequent Transfer Agreement in the form of Exhibit 2,
the respective Seller shall not be insolvent, made insolvent by such transfer or
aware of any pending insolvency;
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(iv) such sale and transfer shall not result in a material adverse tax
consequence to the Issuer or, due to any action or inaction on the part of the
respective Seller to the Securityholders or the Enhancer;
(v) the Revolving Period shall not have terminated; and
(vi) the Enhancer shall have approved the sale of the Subsequent Mortgage Loans
(which approval shall not be unreasonably withheld) within five (5) Business
Days of receipt of the Mortgage Loan Schedule reflecting the Subsequent Mortgage
Loans; provided, that if the Enhancer shall not have notified the respective
Seller or GMACM within five (5) Business Days that the Enhancer does not so
approve, such sale of Subsequent Mortgage Loans shall be deemed approved by the
Enhancer.
In addition, GMACM shall have delivered to the Issuer, the Indenture
Trustee and the Enhancer an Opinion of Counsel with respect to certain
bankruptcy matters relating to the transfers of Subsequent Mortgage Loans, which
Opinion of Counsel shall be substantially in the form of the Opinion of Counsel
delivered to the Enhancer and the Rating Agencies and the Indenture Trustee on
the Closing Date regarding certain bankruptcy matters, within 30 days after the
end of the Pre-Funding Period relating to all Subsequent Mortgage Loans
transferred to the Trust during the Pre-Funding Period, and within 30 days after
the end of the Revolving Period, relating to all Subsequent Mortgage Loans
transferred to the Trust during the Revolving Period, other than Subsequent
Mortgage Loans purchased from funds on deposit in the Pre-Funding Account.
The obligation of the Issuer to purchase a Subsequent Mortgage Loan on
any Subsequent Transfer Date is subject to the following conditions: (i) each
such Subsequent Mortgage Loan must satisfy the representations and warranties
specified in the related Subsequent Transfer Agreement and this Agreement; (ii)
neither Seller has selected such Subsequent Mortgage Loans in a manner that it
reasonably believes is adverse to the interests of the Noteholders or the
Enhancer; (iii) GMACM will deliver to the Enhancer and the Indenture Trustee
certain Opinions of Counsel described in Section 2.2(b) and acceptable to the
Enhancer and the Indenture Trustee with respect to the conveyance of such
Subsequent Mortgage Loans; and (iv) as of the related Subsequent Cut-Off Date
each Subsequent Mortgage Loan will satisfy the following criteria: (A) such
Subsequent Mortgage Loan may not be 30 or more days contractually delinquent as
of the related Subsequent Cut-Off Date; (B) the original stated term to maturity
of such Subsequent Mortgage Loan will not exceed 360 months; (C) such Subsequent
Mortgage Loan must have an outstanding Principal Balance of at least $1,000 and
not more than $750,000 as of the related Subsequent Cut-Off Date; (D) such
Subsequent Mortgage Loan will be underwritten substantially in accordance with
the criteria set forth under "Description of the Mortgage Loans -- Underwriting
Standards" in the Prospectus Supplement; (E) such Subsequent Mortgage Loan must
have a CLTV at origination of no more than 100.00%; (F) the remaining term to
stated maturity of such Subsequent Mortgage Loan must be no later than 360
months; (G) such Subsequent Mortgage Loan shall not provide for negative
amortization; and (H) following the purchase of such Subsequent Mortgage Loans
by the Issuer, the Mortgage Loans included in the Trust Estate must have a
weighted average interest rate, a weighted average remaining term to maturity
and a weighted average CLTV at origination, as of each Subsequent Cut-Off Date,
that does not vary materially from the Initial Mortgage Loans included initially
in the Trust Estate, and the percentage of Mortgage Loans (by aggregate
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principal balance) that are secured by second liens on the related Mortgaged
Properties shall be no greater than the percentage of Initial Mortgage Loans.
Subsequent Mortgage Loans with characteristics materially varying from those set
forth above may be purchased by the Issuer and included in the Trust Estate if
they are acceptable to the Enhancer, in its reasonable discretion; provided,
however, that the addition of such Subsequent Mortgage Loans will not materially
affect the aggregate characteristics of the Mortgage Loans in the Trust Estate.
Neither Seller shall transfer Subsequent Mortgage Loans with the intent to
mitigate losses on Mortgage Loans previously transferred. Upon the end of the
Revolving Period, the Enhancer may increase the Overcollateralization Amount
pursuant to Section 2.2(d) herein.
(c) Within five Business Days after each Subsequent Transfer Date, GMACM shall
deliver to the Rating Agencies, the Indenture Trustee and the Enhancer a copy of
the updated Mortgage Loan Schedule reflecting the Subsequent Mortgage Loans in
electronic format.
(d) In the event that a mortgage loan is not acceptable to the Enhancer as a
Subsequent Mortgage Loan pursuant to Section 2.2(b)(v) hereof, the Enhancer and
GMACM may mutually agree to the transfer of such mortgage loan to the Issuer as
a Subsequent Mortgage Loan, subject to any increase in the Overcollateralization
Amount that may be agreed to by GMACM and the Enhancer pursuant to the
Indenture, in which event GMACM shall deliver to the Issuer and the Indenture
Trustee, with a copy to the Enhancer, an Officer's Certificate confirming the
agreement to the transfer of such Subsequent Mortgage Loan and specifying the
amount of such increase in the Overcollateralization Amount, which additional
Overcollateralization Amount may not be contributed by GMACM.
Section 2.3 Payment of Purchase Price.
(a) The sale of the Initial Mortgage Loans shall take place on the Closing Date,
subject to and simultaneously with the deposit of the Initial Mortgage Loans
into the Trust Estate, the deposit of the Original Pre-Funded Amount and the
Interest Coverage Amount into the Pre-Funding Account and the Capitalized
Interest Account, respectively, and the issuance of the Securities. The purchase
price (the "Purchase Price") for the GMACM Initial Mortgage Loans to be paid by
the Purchaser to GMACM on the Closing Date shall be an amount equal to
$110,065,790.85 in immediately available funds, together with the Certificates
and the Variable Funding Notes, in respect of the Cut-Off Date Principal
Balances thereof. The Purchase Price for the WG Trust Initial Mortgage Loans to
be paid by the Purchaser to WG Trust on the Closing Date shall be an amount
equal to $136,673,763.52 in immediately available funds, in respect of the
Cut-Off Date Principal Balances thereof. The Purchase Price paid for any
Subsequent Mortgage Loan by the Indenture Trustee from funds on deposit in the
Pre-Funding Account, at the direction of the Issuer, shall be one-hundred
percent (100%) of the Subsequent Cut-Off Date Principal Balance thereof (as
identified on the Mortgage Loan Schedule attached to the related Subsequent
Transfer Agreement). In the case of each Additional Balance transferred
hereunder created on or after the Cut-Off Date (or the Subsequent Cut-Off Date
in the case of a Subsequent Mortgage Loan) and prior to the commencement of the
Rapid Amortization Period, the Purchase Price thereof shall be the principal
amount of the related Draw under the related Loan Agreement on the later of the
Closing Date (or the related Subsequent Transfer Date in the case of a
Subsequent Mortgage Loan) and the date of the creation of such Additional
Balance.
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(b) In consideration of the sale of the GMACM Initial Mortgage Loans by GMACM to
the Purchaser on the Closing Date, the Purchaser shall pay to GMACM on the
Closing Date by wire transfer of immediately available funds to a bank account
designated by GMACM, the amount specified above in paragraph (a) for the GMACM
Initial Mortgage Loans; provided, that such payment may be on a net funding
basis if agreed by GMACM and the Purchaser. In consideration of the sale of any
Subsequent Mortgage Loan by GMACM to the Issuer, the Issuer shall pay to GMACM
by wire transfer of immediately available funds to a bank account designated by
GMACM, the amount specified above in paragraph (a) for each Subsequent Mortgage
Loan.
(c) In consideration of the sale of the WG Trust Initial Mortgage Loans by WG
Trust to the Purchaser on the Closing Date, the Purchaser shall pay to WG Trust
on the Closing Date by wire transfer of immediately available funds to a bank
account designated by WG Trust, the amount specified above in paragraph (a) for
the WG Trust Initial Mortgage Loans; provided, that such payment may be on a net
funding basis if agreed by WG Trust and the Purchaser. In consideration of the
sale of any Subsequent Mortgage Loan by WG Trust to the Issuer, the Issuer shall
pay to WG Trust by wire transfer of immediately available funds to a bank
account designated by WG Trust, the amount specified above in paragraph (a) for
each Subsequent Mortgage Loan.
(d) With respect to each Additional Balance transferred hereunder with respect
to any Initial Mortgage Loan or Subsequent Mortgage Loan, the Issuer as assignee
of the Purchaser shall pay or cause to be paid to GMACM or its designee the
Purchase Price specified above for such Additional Balance in one of the
following ways, as applicable: (i) a cash payment pursuant to Section 3.03(b) of
the Servicing Agreement and Section 2.3(a) hereof in an amount equal to the
related Draw, if then available from Principal Collections during the related
Collection Period on the Mortgage Loans, or from funds on deposit in the Funding
Account, and (ii) to the extent aggregate Draws exceed Principal Collections and
the amount on deposit in the Funding Account for such Collection Period, an
increase in the Variable Funding Balance of the Variable Funding Notes of the
related Class or an issuance of new Variable Funding Notes, as of the Payment
Date corresponding to the Collection Period in which such Additional Balances
were created, equal to the amount of such excess.
Section 2.4 Variable Funding Notes on or after the Closing Date. Subject to
Section 4.01(d) of the Indenture, if at any time, GMACM or an Affiliate of GMACM
holds Variable Funding Notes that have reached their Maximum Variable Funding
Balance, and to the extent that the same are exchanged for Capped Funding Notes
in accordance with Section 4.01(d) of the Indenture, GMACM may cause such Capped
Funding Notes to be resold in a private offering pursuant to a private placement
memorandum. Any such private placement memorandum shall not include any
information with respect to the Enhancer, except for information approved by the
Enhancer for use therein.
Section 2.5 Draws During Rapid Amortization Period. During the Rapid
Amortization Period, any Draws made on the HELOCs (each, an "Excluded Amount")
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shall not be Additional Balances, and the ownership of the related balances
shall be retained by GMACM. On any Payment Date during the Rapid Amortization
Period, with respect to the related Collection Period, all Collections in
respect of each HELOC shall be allocated pro rata as between the Issuer and
GMACM, based on the relative proportions of the Principal Balance and the
Excluded Amount thereof, respectively, as of the end of the calendar month
immediately prior to such Collection Period. During the Rapid Amortization
Period, any losses incurred with respect to a HELOC shall be allocated pro rata
between the Issuer and GMACM, based on the Principal Balance and the Excluded
Amount thereof, respectively, as of the date of liquidation of such HELOC.
Notwithstanding any other provision hereof or of the Servicing Agreement,
payments and collections allocable to an Excluded Amount shall not be deposited
into the Custodial Account, the Distribution Account or the Note Payment
Account, and shall be distributed by the Servicer to GMACM no less frequently
than monthly in accordance with reasonable instructions provided by the Seller.
ARTICLE III
REPRESENTATIONS AND WARRANTIES;
REMEDIES FOR BREACH
Section 3.1 GMACM Representations and Warranties. GMACM represents and warrants
to the Purchaser, as of the Closing Date and as of each Subsequent Transfer Date
(or if otherwise specified below, as of the date so specified):
(a) As to GMACM:
(i) GMACM is a corporation duly organized, validly existing and in good standing
under the laws of the jurisdiction governing its creation and existence and is
or will be in compliance with the laws of each state in which any Mortgaged
Property is located to the extent necessary to ensure the enforceability of each
Mortgage Loan;
(ii) GMACM has the power and authority to make, execute, deliver and perform its
obligations under this Agreement and each Subsequent Transfer Agreement to which
it is a party and all of the transactions contemplated under this Agreement and
each such Subsequent Transfer Agreement, and has taken all necessary corporate
action to authorize the execution, delivery and performance of this Agreement
and each such Subsequent Transfer Agreement;
(iii) GMACM is not required to obtain the consent of any other Person or any
consents, licenses, approvals or authorizations from, or registrations or
declarations with, any governmental authority, bureau or agency in connection
with the execution, delivery, performance, validity or enforceability of this
Agreement or any Subsequent Transfer Agreement, except for such consents,
licenses, approvals or authorizations, or registrations or declarations, as
shall have been obtained or filed, as the case may be;
(iv) The execution and delivery of this Agreement and any Subsequent Transfer
Agreement by GMACM and its performance and compliance with the terms of this
Agreement and each such Subsequent Transfer Agreement will not violate GMACM's
Certificate of Incorporation or Bylaws or constitute a material default (or an
event which, with notice or lapse of time, or both, would constitute a material
default) under, or result in the material breach of, any material contract,
agreement or other instrument to which GMACM is a party or which may be
applicable to GMACM or any of its assets;
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(v) No litigation before any court, tribunal or governmental body is currently
pending, or to the knowledge of GMACM threatened, against GMACM or with respect
to this Agreement or any Subsequent Transfer Agreement that in the opinion of
GMACM has a reasonable likelihood of resulting in a material adverse effect on
the transactions contemplated by this Agreement or any Subsequent Transfer
Agreement;
(vi) Reserved;
(vii) This Agreement and each Subsequent Transfer Agreement to which it is a
party, constitutes a legal, valid and binding obligation of GMACM, enforceable
against GMACM in accordance with its terms, except as enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other similar laws now or hereafter in effect affecting the enforcement of
creditors' rights in general and except as such enforceability may be limited by
general principles of equity (whether considered in a proceeding at law or in
equity) or by public policy with respect to indemnification under applicable
securities laws;
(viii) This Agreement constitutes a valid transfer and assignment to the
Purchaser of all right, title and interest of GMACM in and to the GMACM Initial
Mortgage Loans, including the Cut-Off Date Principal Balances now existing and
all Additional Balances thereafter arising to and including the day immediately
preceding the Rapid Amortization Period, all monies due or to become due with
respect thereto, and all proceeds of such Cut-Off Date Principal Balances with
respect to the GMACM Initial Mortgage Loans; and this Agreement and the related
Subsequent Transfer Agreement, when executed, will constitute a valid transfer
and assignment to the Issuer of all right, title and interest of GMACM in and to
the related Subsequent Mortgage Loans, including the Cut-Off Date Principal
Balances existing on the related Subsequent Cut-Off Date and thereafter all
Additional Balances arising to and including the day immediately preceding the
Rapid Amortization Period, all monies due or to become due with respect thereto,
and all proceeds of such Subsequent Cut-Off Date Principal Balances and such
funds as are from time to time deposited in the Custodial Account (excluding any
investment earnings thereon) as assets of the Trust and all other property
specified in the definition of "Trust" as being part of the corpus of the Trust
conveyed to the Purchaser by GMACM, and upon payment for the Additional Balances
with respect to any of the Mortgage Loans, will constitute a valid transfer and
assignment to the Purchaser (or the Issuer in the case of any Additional
Balances relating to Subsequent Mortgage Loans) of all right, title and interest
of GMACM in and to the Additional Balances, all monies due or to become due with
respect thereto, and all proceeds of such Additional Balances and all other
property specified in the definition of "Trust" relating to the Additional
Balances; and
(ix) GMACM is not in default with respect to any order or decree of any court or
any order, regulation or demand of any federal, state, municipal or governmental
agency, which default might have consequences that would materially and
adversely affect the condition (financial or otherwise) or operations of GMACM
or its properties or might have consequences that would materially adversely
affect its performance hereunder;
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(b) As to each Initial Mortgage Loan (except as otherwise specified below) as of
the Closing Date, or with respect to each Subsequent Mortgage Loan as of the
related Subsequent Transfer Date (except as otherwise specified below):
(i) The information set forth in the Mortgage Loan Schedule with respect to each
Mortgage Loan or the Mortgage Loans is true and correct in all material respects
as of the date or dates respecting which such information is initially
furnished;
(ii) With respect to each of the WG Trust Initial Mortgage Loans, as of each
respective Prior Transfer Date: (A) the related Loan Agreement and the Mortgage
had not been assigned or pledged, except for any assignment or pledge that had
been satisfied and released, (B) immediately prior to the assignment of such
Mortgage Loans to Walnut Grove, GMACM had good title thereto and (C) immediately
prior to such assignment, GMACM was the sole owner and holder of the Mortgage
Loan free and clear of any and all liens, encumbrances, pledges, or security
interests (other than, with respect to any Mortgage Loan in a second lien
position, the lien of the related first mortgage) of any nature and had full
right and authority, under all governmental and regulatory bodies having
jurisdiction over the ownership of the applicable Mortgage Loan, to sell and
assign the same pursuant to the Walnut Grove Purchase Agreement;
(iii) With respect to the GMACM Initial Mortgage Loans: (A) the related Loan
Agreement and the Mortgage have not been assigned or pledged, except for any
assignment or pledge that has been satisfied and released, (B) immediately prior
to the assignment of the Mortgage Loans to the Purchaser, GMACM has good title
thereto and (C) GMACM is the sole owner and holder of the Mortgage Loan free and
clear of any and all liens, encumbrances, pledges, or security interests (other
than, with respect to any Mortgage Loan in a second lien position, the lien of
the related first mortgage) of any nature and has full right and authority,
under all governmental and regulatory bodies having jurisdiction over the
ownership of the applicable Mortgage Loans to sell and assign the same pursuant
to this Agreement or the related Subsequent Transfer Agreement, as applicable;
(iv) To the best of GMACM's knowledge, there is no valid offset, defense or
counterclaim of any obligor under any Loan Agreement or Mortgage;
(v) To the best of GMACM's knowledge, there is no delinquent recording or other
tax or fee or assessment lien against any related Mortgaged Property;
(vi) To the best of GMACM's knowledge, there is no proceeding pending or
threatened for the total or partial condemnation of the related Mortgaged
Property;
(vii) To the best of GMACM's knowledge, there are no mechanics' or similar liens
or claims which have been filed for work, labor or material affecting the
related Mortgaged Property which are, or may be liens prior or equal to, or
subordinate with, the lien of the related Mortgage, except liens which are fully
insured against by the title insurance policy referred to in clause (xi);
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(viii) As of the Cut-Off Date or related Subsequent Cut-Off Date, no Mortgage
Loan was 30 days or more delinquent in payment of principal or interest;
(ix) With respect to the GMACM Initial Mortgage Loans, the related Mortgage File
contains or will contain, in accordance with Section 2.1(e)(ii), each of the
documents and instruments specified to be included therein;
(x) To the best of the GMACM's knowledge, the related Loan Agreement and the
related Mortgage at the time it was made complied in all material respects with
applicable local, state and federal laws;
(xi) A title search or other assurance of title customary in the relevant
jurisdiction was obtained with respect to each Mortgage Loan;
(xii) None of the Mortgaged Properties is a mobile home or a manufactured
housing unit that is not permanently attached to its foundation;
(xiii) As of the Cut-Off Date, no more than approximately 27.99% and 16.81% of
the Initial HELOCs, by Cut-Off Date Principal Balance, are secured by Mortgaged
Properties located in California and Michigan, respectively, and no more than
approximately 32.86% and 6.22% of the Initial HELs, by Cut-Off Date Principal
Balance, are secured by Mortgaged Properties located in California and New York.
No more than approximately 4.34% of the Initial HELOCs and approximately 2.74%
of the Initial HELs, by Cut-Off Date Principal Balance, are secured by Mortgaged
Properties located in planned unit developments;
(xiv) As of the Cut-Off Date or Subsequent Cut-Off Date, the Combined
Loan-to-Value Ratio for each Mortgage Loan was not in excess of 105.57%;
(xv) GMACM has not transferred the GMACM Initial Mortgage Loans to the Purchaser
or any Subsequent Mortgage Loans to the Issuer with any intent to hinder, delay
or defraud any of its creditors;
(xvi) As of the Cut-Off Date, no more than approximately 20% of the Initial
Mortgage Loans, by Cut-Off Date Principal Balance, are secured by Mortgaged
Properties which may have been appraised using the statistical property
evaluation method of Xxxxxxx.xxx;
(xvii) The minimum monthly payment with respect to any Mortgage Loan is not less
than the interest accrued at the applicable Loan Rate on the average daily
Principal Balance during the interest period relating to the date on which such
minimum monthly payment is due;
(xviii) Within a loan type, and except as required by applicable law, each Loan
Agreement and each Mortgage is an enforceable obligation of the related
Mortgagor;
(xix) To the best knowledge of GMACM, the physical property subject to each
Mortgage is free of material damage and is in acceptable repair;
15
(xx) GMACM has not received a notice of default of any senior mortgage loan
related to a Mortgaged Property which has not been cured by a party other than
the Servicer;
(xxi) Each of the HELOCs has a substantially similar definition of the prime
rate as the Index applicable to the related Loan Rate;
(xxii) None of the Mortgage Loans is a reverse mortgage loan;
(xxiii) No Initial HELOC has an original term to maturity in excess of 300
months. Interest rate adjustments for HELOCs prior to the Cut-Off Date or
Subsequent Cut-Off Date were made in compliance with the related Mortgage and
Loan Agreement. Over the term of any HELOC, the Loan Rate may not exceed the
related Maximum Loan Rate, if any;
(xxiv) As of the Cut-Off Date, the Initial HELOCs have Maximum Loan Rates which
range between 15.000% and 19.250%. The current Gross Margins for the Initial
HELOCs range between -0.25% and 5.250%, and the weighted average Gross Margin
for the Initial HELOCs is approximately 1.398% as of the Cut-Off Date. As of the
Cut-Off Date, the Loan Rates on the Initial HELOCs range between 9.00% (not
including teaser rates) and 14.750% and on the Initial HELs range between 6.990%
and 14.125%, and the weighted average Loan Rate is approximately 10.898% (not
including teaser rates) for the Initial HELOCs and 10.934% for the Initial HELs.
The weighted average remaining term to scheduled maturity of the Initial
Mortgage Loans on a contractual basis as of the Cut-Off Date is approximately
193 months for the Initial HELOCs and 209 months for the Initial HELs;
(xxv) (A) Each Mortgaged Property consists of a single parcel of real property
with a single family or two- to four-family residence erected thereon, or an
individual condominium unit, planned unit development unit; (B) (1)With respect
to the Initial HELOCs (a) approximately 10.14% (by Cut-Off Date Principal
Balance) are secured by real property improved by individual condominium units
and planned development units, (b) approximately 89.03% (by Cut-Off Date
Principal Balance) are secured by real property with a single family residence
erected thereon, (c) approximately 0.81% (by Cut-Off Date Principal Balance) are
secured by real property with a two- to four-family residence erected thereon
and (d) 0.02% are secured by real property improved by manufactured housing and
(2) With respect to the Initial HELs, (a) approximately 6.09% (by Cut-Off Date
Principal Balance) are secured by real property improved by individual
condominium units and planned development units, (b) approximately 91.16% (by
Cut-Off Date Principal Balance) are secured by real property with a single
family residence erected thereon, (c) approximately 2.74% (by Cut-Off Date
Principal Balance) are secured by real property with a two- to four-family
residence erected thereon and (d) none are secured by real property improved by
manufactured housing;
(xxvi) As of the Cut-Off Date, (A) the Credit Limits on the Initial HELOCs range
between approximately $6,700.00 and $900,000.00 with an average of $43,097.19,
and (B) no Initial Mortgage Loan had a principal balance in excess of
$891,121.88;
(xxvii) No more than approximately 92.26% of the Initial Mortgage Loans, by
aggregate Principal Balance as of the Cut-Off Date, are secured by second liens;
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(xxviii) A policy of hazard insurance and flood insurance, if applicable, was
required from the Mortgagor for the Mortgage Loan when the Mortgage Loan was
originated;
(xxix) Other than with respect to a payment default, there is no material
default, breach, violation or event of acceleration existing under the terms of
any Loan Agreement or Mortgage and, to the best of GMACM's knowledge, no event
which, with notice and expiration of any grace or cure period, would constitute
a material default, breach, violation or event of acceleration under the terms
of any Loan Agreement or Mortgage, and no such material default, breach,
violation or event of acceleration has been waived by GMACM involved in
originating or servicing the related Mortgage Loan;
(xxx) To the best knowledge of GMACM, no instrument of release or waiver has
been executed in connection with the Mortgage Loans, and no Mortgagor has been
released, in whole or in part from its obligations in connection therewith;
(xxxi) With respect to each Mortgage Loan secured by a second lien, either (a)
no consent for such Mortgage Loan was required by the holder or holders of the
related prior lien, (b) such consent has been obtained and is contained in the
related Mortgage File or (c) no consent for such Mortgage Loan was required by
relevant law;
(xxxii) With respect to each Mortgage Loan, to the extent permitted by
applicable law, the related Mortgage contains a customary provision for the
acceleration of the payment of the unpaid Principal Balance of the Mortgage Loan
in the event the related Mortgaged Property is sold without the prior consent of
the mortgagee thereunder; and
(xxxiii) GMACM used no selection procedures that identified Mortgage Loans as
being less desirable or valuable than other comparable mortgage loans originated
or acquired by GMACM under the GMACM Home Equity Program. The Mortgage Loans are
representative of the GMACM's portfolio of fixed rate and adjustable rate
mortgage loans that were originated under the GMACM Home Equity Program.
With respect to this Section 3.1(b), representations made by
GMACM with respect to the WG Trust Initial Mortgage Loans, made as of the
Cut-Off Date or the Closing Date or with respect to the Subsequent Mortgage
Loans sold by WG Trust and made as of the Subsequent Cut-Off Date or the
Subsequent Transfer Date, are made by GMACM in its capacity as Servicer.
Representations made by GMACM with respect to the WG Trust Initial Mortgage
Loans or the Subsequent Mortgage Loans sold by WG Trust and made as of any other
date, are made by GMACM in its capacity as Seller.
(c) WG Trust Representations and Warranties WG Trust represents
and warrants to the Purchaser, as of the Closing Date and as of each Subsequent
Transfer Date:
(i) As to WG Trust:
(i) WG Trust is a Delaware business trust duly organized, validly existing and
in good standing under the laws of the State of Delaware;
17
(ii) WG Trust has the power and authority to make, execute, deliver and perform
its obligations under this Agreement and each Subsequent Transfer Agreement to
which it is a party and all of the transactions contemplated under this
Agreement and each such Subsequent Transfer Agreement, and has taken all
necessary action to authorize the execution, delivery and performance of this
Agreement and each such Subsequent Transfer Agreement;
(iii) WG Trust is not required to obtain the consent of any other Person or any
consents, licenses, approvals or authorizations from, or registrations or
declarations with, any governmental authority, bureau or agency in connection
with the execution, delivery, performance, validity or enforceability of this
Agreement or any Subsequent Transfer Agreement, except for such consents,
licenses, approvals or authorizations, or registrations or declarations, as
shall have been obtained or filed, as the case may be;
(iv) The execution and delivery of this Agreement and any Subsequent Transfer
Agreement by WG Trust and its performance and compliance with the terms of this
Agreement and each such Subsequent Transfer Agreement will not violate WG
Trust's organizational documents or constitute a material default (or an event
which, with notice or lapse of time, or both, would constitute a material
default) under, or result in the material breach of, any material contract,
agreement or other instrument to which WG Trust is a party or which may be
applicable to WG Trust or any of its assets;
(v) No litigation before any court, tribunal or governmental body is currently
pending, or to the knowledge of WG Trust threatened, against WG Trust or with
respect to this Agreement or any Subsequent Transfer Agreement that in the
opinion of WG Trust has a reasonable likelihood of resulting in a material
adverse effect on the transactions contemplated by this Agreement or any
Subsequent Transfer Agreement;
(vi) This Agreement and each Subsequent Transfer Agreement to which it is a
party constitutes a legal, valid and binding obligation of WG Trust, enforceable
against WG Trust in accordance with its terms, except as enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other similar laws now or hereafter in effect affecting the enforcement of
creditors' rights in general and except as such enforceability may be limited by
general principles of equity (whether considered in a proceeding at law or in
equity) or by public policy with respect to indemnification under applicable
securities laws;
(vii) This Agreement constitutes a valid transfer and assignment to the
Purchaser of all right, title and interest of WG Trust in and to the WG Trust
Initial Mortgage Loans, including the Cut-Off Date Principal Balances with
respect to the WG Trust Initial Mortgage Loans, all Additional Balances
thereafter arising, all monies due or to become due with respect thereto, and
all proceeds of such Cut-Off Date Principal Balances with respect to the WG
Trust Initial Mortgage Loans; and this Agreement and the related Subsequent
Transfer Agreement, when executed, will constitute a valid transfer and
assignment to the Issuer of all right, title and interest of WG Trust in and to
the related Subsequent Mortgage Loans, including the Cut-Off Date Principal
Balances existing on the related Subsequent Cut-Off Date and all Additional
Balances thereafter arising, all monies due or to become due with respect
thereto, and all proceeds thereof and such funds as are from time to time
deposited in the Custodial Account (excluding any investment earnings thereon)
18
as assets of the Trust and all other property specified in the definition of
"Trust" as being part of the corpus of the Trust conveyed to the Purchaser by WG
Trust; and
(viii) WG Trust is not in default with respect to any order or decree of any
court or any order, regulation or demand of any federal, state, municipal or
governmental agency, which default might have consequences that would materially
and adversely affect the condition (financial or otherwise) or operations of WG
Trust or its properties or might have consequences that would materially
adversely affect its performance hereunder.
(ii) As to the WG Trust Initial Mortgage Loans:
(i) With respect to the WG Trust Initial Mortgage Loans: (A) The related Loan
Agreement and the Mortgage have not been assigned or pledged, except for any
assignment or pledge that has been satisfied and released, (B) immediately prior
to the assignment of the Mortgage Loans to the Purchaser, WG Trust had good
title thereto and (C) WG Trust is the sole owner and holder of the Mortgage Loan
free and clear of any and all liens, encumbrances, pledges, or security
interests (other than, with respect to any Mortgage Loan in a second lien
position, the lien of the related first mortgage) of any nature and has full
right and authority, under all governmental and regulatory bodies having
jurisdiction over the ownership of the applicable Mortgage Loans to sell and
assign the same pursuant to this Agreement;
(ii) For each WG Trust Initial Mortgage Loan, the related Mortgage File contains
or will contain, in accordance with Section 2.1(e)(ii), each of the documents
and instruments specified to be included therein;
(iii) WG Trust has not transferred the WG Trust Initial Mortgage Loans to the
Purchaser with any intent to hinder, delay or defraud any of its creditors; and
(iv) No instrument of release or waiver has been executed by WG Trust in
connection with the WG Trust Initial Mortgage Loans, and no Mortgagor has been
released by WG Trust, in whole or in part, from its obligations in connection
therewith.
(d) Upon discovery by either Seller or upon notice from the Purchaser,
the Enhancer, the Issuer, the Owner Trustee, the Indenture Trustee or the
Custodian, as applicable, of a breach of such Seller's respective
representations or warranties in paragraphs (a) or (c)(i) above that materially
and adversely affects the interests of the Securityholders or the Enhancer, as
applicable, in any Mortgage Loan, GMACM or WG Trust, as applicable, shall,
within 90 days of its discovery or its receipt of notice of such breach, either
(i) cure such breach in all material respects or (ii) to the extent that such
breach is with respect to a Mortgage Loan or a Related Document, either (A)
repurchase such Mortgage Loan from the Issuer at the Repurchase Price, or (B)
substitute one or more Eligible Substitute Loans for such Mortgage Loan, in each
case in the manner and subject to the conditions and limitations set forth
below.
Upon discovery by either Seller or upon notice from the Purchaser, the
Enhancer, the Issuer, the Owner Trustee, the Indenture Trustee or the Custodian,
as applicable, of a breach of a Seller's representations or warranties in
paragraphs (b) or (c)(ii) above, with respect to any Mortgage Loan, or upon the
occurrence of a Repurchase Event, that materially and adversely affects the
interests of the Securityholders, the Enhancer or the Purchaser in such Mortgage
19
or GMACM, if it discovers the same), notwithstanding such Seller's or GMACM's
lack of knowledge with respect to the substance of such representation and
warranty, such Seller or GMACM, as the case may be, shall, within 90 days after
the earlier of its discovery or receipt of notice thereof, either cure such
breach or Repurchase Event in all material respects or either (i) repurchase
such Mortgage Loan from the Issuer at the Repurchase Price, or (ii) substitute
one or more Eligible Substitute Loans for such Mortgage Loan, in each case in
the manner and subject to the conditions set forth below. The Repurchase Price
for any such Mortgage Loan repurchased by such Seller shall be deposited or
caused to be deposited by the Servicer into the Custodial Account. Any purchase
of a Mortgage Loan due to a Repurchase Event shall be the obligation of GMACM.
In the event that either Seller elects to substitute an Eligible
Substitute Loan or Loans for a Deleted Loan pursuant to this Section 3.1, such
Seller shall deliver to the Custodian on behalf of the Issuer, with respect to
such Eligible Substitute Loan or Loans, the original Loan Agreement and all
other documents and agreements as are required by Section 2.1(e), with the Loan
Agreement endorsed as required by Section 2.1(e). No substitution will be made
in any calendar month after the Determination Date for such month. Minimum
Monthly Payments due with respect to Eligible Substitute Loans in the month of
substitution shall not be part of the Trust Estate and will be retained by the
Servicer and remitted by the Servicer to such Seller on the next succeeding
Payment Date, provided that a payment at least equal to the applicable Minimum
Monthly Payment for such month in respect of the Deleted Loan has been received
by the Issuer. For the month of substitution, distributions to the Note Payment
Account pursuant to the Servicing Agreement will include the Minimum Monthly
Payment due on a Deleted Loan for such month and thereafter such Seller shall be
entitled to retain all amounts received in respect of such Deleted Loan. The
Servicer shall amend or cause to be amended the Mortgage Loan Schedule to
reflect the removal of such Deleted Loan and the substitution of the Eligible
Substitute Loan or Loans and the Servicer shall deliver the amended Mortgage
Loan Schedule to the Owner Trustee, the Indenture Trustee and the Enhancer. Upon
such substitution, the Eligible Substitute Loan or Loans shall be subject to the
terms of this Agreement and the Servicing Agreement in all respects, GMACM shall
be deemed to have made the representations and warranties with respect to the
Eligible Substitute Loan contained herein set forth in Section 3.1(b) (other
than clauses (xiii), (xiv), (xxiv), (xxv) and (xxvii) thereof), and, if the
Seller is WG Trust, WG Trust shall be deemed to have made the representations
and warranties set forth in Section 3.1(c)(ii), in each case, as of the date of
substitution, and the related Seller shall be deemed to have made a
representation and warranty that each Mortgage Loan so substituted is an
Eligible Substitute Loan as of the date of substitution. In addition, GMACM
shall be obligated to repurchase or substitute for any Eligible Substitute Loan
as to which a Repurchase Event has occurred as provided herein. In connection
with the substitution of one or more Eligible Substitute Loans for one or more
Deleted Loans, the Servicer shall determine the amount (such amount, a
"Substitution Adjustment Amount"), if any, by which the aggregate principal
balance of all such Eligible Substitute Loans as of the date of substitution is
less than the aggregate principal balance of all such Deleted Loans (after
application of the principal portion of the Minimum Monthly Payments due in the
month of substitution that are to be distributed to the Note Payment Account in
the month of substitution). Such Seller shall deposit the amount of such
shortfall into the Custodial Account on the date of substitution, without any
reimbursement therefor.
20
Upon receipt by the Indenture Trustee on behalf of the Issuer and the
Custodian of written notification, signed by a Servicing Officer, of the deposit
of such Repurchase Price or of such substitution of an Eligible Substitute Loan
(together with the complete related Mortgage File) and deposit of any applicable
Substitution Adjustment Amount as provided above, the Custodian, on behalf of
the Indenture Trustee, shall release to such Seller or GMACM, as the case may
be, the related Mortgage File for the Mortgage Loan being repurchased or
substituted for and the Indenture Trustee on behalf of the Issuer shall execute
and deliver such instruments of transfer or assignment prepared by the Servicer,
in each case without recourse, as shall be necessary to vest in such Seller or
GMACM, as the case may be, or its respective designee such Mortgage Loan
released pursuant hereto and thereafter such Mortgage Loan shall not be an asset
of the Issuer.
It is understood and agreed that the obligation of each Seller and GMACM
to cure any breach, or to repurchase or substitute for any Mortgage Loan as to
which such a breach has occurred and is continuing, shall constitute the sole
remedy respecting such breach available to the Purchaser, the Issuer, the
Certificateholders (or the Owner Trustee on behalf of the Certificateholders)
and the Noteholders (or the Indenture Trustee on behalf of the Noteholders)
against such Seller and GMACM.
It is understood and agreed that the representations and warranties set
forth in this Section 3.1 shall survive delivery of the respective Mortgage
Files to the Issuer or the Custodian.
ARTICLE IV
SELLERS' COVENANTS
Section 4.1 Covenants of the Sellers. Each Seller hereby covenants that, except
for the transfer hereunder and as of any Subsequent Transfer Date, neither
Seller will sell, pledge, assign or transfer to any other Person, or grant,
create, incur or assume any Lien on any Mortgage Loan, or any interest therein,
except with respect to any Excluded Amount. Each Seller shall notify the Issuer
(in the case of the Initial Mortgage Loans, as assignee of the Purchaser), of
the existence of any Lien (other than as provided above) on any Mortgage Loan
immediately upon discovery thereof; and each Seller shall defend the right,
title and interest of the Issuer (in the case of the Initial Mortgage Loans, as
assignee of the Purchaser) in, to and under the Mortgage Loans against all
claims of third parties claiming through or under such Seller; provided,
however, that nothing in this Section 4.1 shall be deemed to apply to any Liens
for municipal or other local taxes and other governmental charges if such taxes
or governmental charges shall not at the time be due and payable or if either
Seller shall currently be contesting the validity thereof in good faith by
appropriate Proceedings.
21
ARTICLE V
SERVICING
Section 5.1 Servicing. GMACM shall service the Mortgage Loans pursuant to the
terms and conditions of the Servicing Agreement and the Program Guide and shall
service the Mortgage Loans directly or through one or more sub-servicers in
accordance therewith.
ARTICLE VI
INDEMNIFICATION BY THE SELLERS
WITH RESPECT TO THE MORTGAGE LOANS
Section 6.1 Limitation on Liability of the Sellers. None of the directors,
officers, employees or agents of either GMACM or WG Trust shall be under any
liability to the Purchaser or the Issuer, it being expressly understood that all
such liability is expressly waived and released as a condition of, and as
consideration for, the execution of this Agreement and any Subsequent Transfer
Agreement. Except as and to the extent expressly provided in the Servicing
Agreement, GMACM and WG Trust shall not be under any liability to the Issuer,
the Owner Trustee, the Indenture Trustee or the Securityholders. GMACM, WG Trust
and any director, officer, employee or agent of GMACM or WG Trust, 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.
Section 6.2 Indemnification with Respect to the Mortgage Loans. The Sellers
shall indemnify and hold harmless the Purchaser and the Issuer (with respect to
the Initial Mortgage Loans, as assignee of the Purchaser) from and against any
loss, liability or expense arising from any breach by either Seller of its
representations and warranties in Section 3.1 of this Agreement that materially
and adversely affects the Purchaser's interest in any Initial Mortgage Loan or
the Issuer's interest in any Mortgage Loan or from the failure by either Seller
to perform its obligations under this Agreement or any Subsequent Transfer
Agreement in any material respect; provided, that neither Seller shall an
obligation to indemnify the Purchaser in respect of any loss, liability or
expense that arises as a result of the Purchaser's willful malfeasance, bad
faith or negligence or as a result of the breach by the Purchaser of its
obligations hereunder; nor shall either Seller have any obligation to indemnify
the Issuer in respect of any loss, liability or expense that arises as a result
of the Issuer's willful malfeasance, bad faith or negligence.
ARTICLE VII
TERMINATION
Section 7.1 Termination. The obligations and responsibilities of the parties
hereto shall terminate upon the termination of the Trust Agreement.
22
ARTICLE VIII
MISCELLANEOUS PROVISIONS
Section 8.1 Amendment. This Agreement may be amended from time to time by the
parties hereto by written agreement with the prior written consent of the
Enhancer (which consent shall not be unreasonably withheld).
Section 8.2 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS
AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
SUCH LAWS.
Section 8.3 Notices. All demands, notices and communications hereunder shall be
in writing and shall be deemed to have been duly given if personally delivered
at or mailed by registered mail, postage prepaid, addressed as follows:
(i) if to the GMACM:
GMAC Mortgage Corporation
000 Xxxxxx Xxxx
Xxxxxxx, Xxxxxxxxxxxx 00000
Attention: Xxxxx Xxxx, Senior Vice President
Re: GMACM Home Equity Loan Trust 2000-HE4;
(ii) if to WG Trust:
Walnut Grove Home Equity Loan Trust
2000-A
c/o Wilmington Trust Company
0000 Xxxxx Xxxxxx Xxxxxx
Xxxxxxxxxx, Xxxxxxxx 00000
Attention: Walnut Grove Home Equity Loan
Trust 2000-A
Re:GMACM Home Equity Loan Trust 2000-HE4;
(iii) if to the Purchaser:
Residential Asset Mortgage Products, Inc.
0000 Xxxxxxxxxx Xxxx Xxxxxxxxx
Xxxxxxxxxxx, Xxxxxxxxx 00000
Attention:President
Re: GMACM Home Equity Loan Trust 2000-HE4;
23
(iv) if to the Indenture Trustee:
Xxxxx Fargo Bank Minnesota, N.A.
00000 Xxxxxx Xxxx Xxxxxxx
Xxxxxxxx, Xxxxxxxx 00000
Attention: GMACM Home Equity Loan Trust 2000-HE4;
(v) if to the Issuer:
c/o Wilmington Trust Company, as Owner Trustee
Xxxxxx Square North
0000 Xxxxx Xxxxxx Xxxxxx
Xxxxxxxxxx, Xxxxxxxx 00000-0000
Re: GMACM Home Equity Loan Trust 2000-HE4; or
(vi) if to the Enhancer:
MBIA Insurance Corporation
000 Xxxx Xxxxxx
Xxxxxx, Xxx Xxxx 00000
Attention:Insured Portfolio Management - Structured Finance
Re: GMACM Home Equity Loan Trust 2000-HE4;
or, with respect to any of the foregoing Persons, at such other address as may
hereafter be furnished to the other foregoing Persons in writing.
Section 8.4 Severability of Provisions. If any one or more of the covenants,
agreements, provisions or terms of this Agreement shall be held invalid for any
reason whatsoever, 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 of enforceability of
the other provisions of this Agreement.
Section 8.5 Relationship of Parties. Nothing herein contained shall be deemed or
construed to create a partnership or joint venture among the parties hereto, and
the services of the GMACM shall be rendered as an independent contractor and not
as agent for the Purchaser.
Section 8.6 Counterparts. This Agreement may be executed in any number of
counterparts, each of which, when so executed, shall be deemed to be an original
and such counterparts, together, shall constitute one and the same agreement.
Section 8.7 Further Agreements. The parties hereto each agree to execute and
deliver to the other such additional documents, instruments or agreements as may
be necessary or appropriate to effectuate the purposes of this Agreement.
Section 8.8 Intention of the Parties. It is the intention of the parties hereto
that the Purchaser will be purchasing on the Closing Date, and the Sellers will
be selling on the Closing Date, the Initial Mortgage Loans, rather than the
Purchaser providing a loan to the Sellers secured by the Initial Mortgage Loans
on the Closing Date; and that the Issuer will be purchasing on each Subsequent
Transfer Date, and the Sellers will be selling on each Subsequent Transfer Date,
24
the related Subsequent Mortgage Loans, rather than the Issuer providing a loan
to the Sellers secured by the related Subsequent Mortgage Loans on each
Subsequent Transfer Date. Accordingly, the parties hereto each intend to treat
this transaction for federal income tax purposes as (i) a sale by the Sellers,
and a purchase by the Purchaser, of the Initial Mortgage Loans on the Closing
Date and (ii) a sale by the Sellers, and a purchase by the Issuer, of the
related Subsequent Mortgage Loans on each Subsequent Transfer Date. The
Purchaser and the Issuer shall each have the right to review the Mortgage Loans
and the Related Documents to determine the characteristics of the Mortgage Loans
which will affect the federal income tax consequences of owning the Mortgage
Loans, and each Seller shall cooperate with all reasonable requests made by the
Purchaser or the Issuer in the course of such review.
Section 8.9 Successors and Assigns; Assignment of this Agreement.
(a) This Agreement shall bind and inure to the benefit of and be enforceable by
the parties hereto and their respective permitted successors and assigns. The
obligations of each Seller under this Agreement cannot be assigned or delegated
to a third party without the consent of the Enhancer and the Purchaser (and the
Issuer with respect to the transfer of any Subsequent Mortgage Loans), which
consent shall be at the Purchaser's sole discretion (and the Issuer's sole
discretion with respect to the transfer of any Subsequent Mortgage Loans);
provided, that each Seller may assign its obligations hereunder to any Affiliate
of such Seller, to any Person succeeding to the business of such Seller, to any
Person into which such Seller is merged and to any Person resulting from any
merger, conversion or consolidation to which such Seller is a party. The parties
hereto acknowledge that (i) the Purchaser is acquiring the Initial Mortgage
Loans for the purpose of contributing them to the GMACM Home Equity Loan Trust
2000-HE4 and (ii) the Issuer is acquiring the Subsequent Mortgage Loans for the
purpose of pledging the Subsequent Mortgage Loans to the Indenture Trustee for
the benefit of the Noteholders and the Enhancer.
(b) As an inducement to the Purchaser and the Issuer to purchase the Initial
Mortgage Loans and to the Issuer to purchase any Subsequent Mortgage Loans, each
Seller acknowledges and consents to (i) the assignment by the Purchaser to the
Issuer of all of the Purchaser's rights against each Seller pursuant to this
Agreement insofar as such rights relate to the Initial Mortgage Loans
transferred to the Issuer and to the enforcement or exercise of any right or
remedy against either Seller pursuant to this Agreement by the Issuer, (ii) the
enforcement or exercise of any right or remedy against either Seller pursuant to
this Agreement by or on behalf of the Issuer and (iii) the Issuer's pledge of
its interest in this Agreement to the Indenture Trustee and the enforcement by
the Indenture Trustee of any such right or remedy against either Seller
following an Event of Default under the Indenture. Such enforcement of a right
or remedy by the Issuer, the Owner Trustee, the Enhancer or the Indenture
Trustee, as applicable, shall have the same force and effect as if the right or
remedy had been enforced or exercised by the Purchaser or the Issuer directly.
Section 8.10 Survival. The representations and warranties made herein by each
Seller and the provisions of Article VI hereof shall survive the purchase of the
Initial Mortgage Loans hereunder and any transfer of Subsequent Mortgage Loans
pursuant to this Agreement and the related Subsequent Transfer Agreement.
25
Section 8.11 Third Party Beneficiary. The Enhancer shall be a third party
beneficiary hereof and shall be entitled to enforce the provisions of this
Agreement as if a party hereto.
26
IN WITNESS WHEREOF, the parties hereto have caused their names to be
signed to this Mortgage Loan Purchase Agreement by their respective officers
thereunto duly authorized as of the day and year first above written.
RESIDENTIAL ASSET MORTGAGE PRODUCTS, INC., as
Purchaser
By: /s/ Xxxxxxxx X. Xxxxxx
Name: Xxxxxxxx X. Xxxxxx
Title: Vice President
GMAC MORTGAGE CORPORATION,
as Seller and Servicer
By: /s/ Xxxxxx X. X'Xxxx
Name: Xxxxxx X. X'Xxxx
Title: Vice President
WALNUT GROVE HOME EQUITY LOAN TRUST 2000-A, as
Seller
By: WILMINGTON TRUST COMPANY,
not in its individual capacity but
solely as
Owner Trustee
By: /s/ Xxxxxx X. XxxXxxxxx
Name: Xxxxxx X. XxxXxxxxx
Title: Vice President
27
GMACM HOME EQUITY LOAN TRUST 2000-HE4, as Issuer
By: WILMINGTON TRUST COMPANY,
not in its individual capacity but solely
as
Owner Trustee
By: /s/ Xxxxxx X. XxxXxxxxx
Name: Xxxxxx X. XxxXxxxxx
Title: Vice President
XXXXX FARGO BANK MINNESOTA, N.A., as Indenture
Trustee
By: /s/ Xxxxx X. Xxxxxx
Name: Xxxxx X. Xxxxxx
Title: Assistant Vice President
28
2-1
EXHIBIT 1
MORTGAGE LOAN SCHEDULE
EXHIBIT 2
FORM OF SUBSEQUENT TRANSFER AGREEMENT
Pursuant to this Subsequent Transfer Agreement No.____ (the "Agreement"),
dated as of______,_____ between [_________], as seller (the "Seller"), and GMACM
Home Equity Loan Trust 2000-HE4, as issuer (the "Issuer"), and pursuant to the
mortgage loan purchase agreement dated as of November 29, 2000 (the "Mortgage
Loan Purchase Agreement"), among GMAC Mortgage Corporation, as a seller and
servicer, Walnut Grove Home Equity Loan Trust 2000-A, as a seller, Residential
Asset Mortgage Products, Inc., as purchaser (the "Purchaser"), the Issuer and
Xxxxx Fargo Bank Minnesota, N.A., as indenture trustee (the "Indenture
Trustee"), the Seller and the Issuer agree to the sale by the Seller and the
purchase by the Issuer of the mortgage loans listed on the attached Schedule of
Subsequent Mortgage Loans (the "Subsequent Mortgage Loans").
Capitalized terms used and not defined herein have their respective
meanings as set forth in Appendix A to the indenture dated as of November 29,
2000, between the Issuer and the Indenture Trustee, which meanings are
incorporated by reference herein. All other capitalized terms used herein shall
have the meanings specified herein.
Section 1. Sale of Subsequent Mortgage Loans.
(a) The Seller does hereby sell, transfer, assign, set over and convey
to the Issuer, without recourse, all of its right, title and interest in and to
the Subsequent Mortgage Loans (including the Subsequent Cut-Off Date Principal
Balance now existing and all Additional Balances thereafter arising to and
including the date immediately preceding the commencement of the Rapid
Amortization Period), all principal received and interest thereon on and after
the Subsequent Cut-Off Date, all monies due or to become due thereon and all
items with respect to the Subsequent Mortgage Loans to be delivered pursuant to
Section 2.2 of the Mortgage Loan Purchase Agreement; provided, however, that the
Seller reserves and retains all right, title and interest in and to principal
received and interest accruing on the Subsequent Mortgage Loans prior to the
Subsequent Cut-Off Date. The Seller, contemporaneously with the delivery of this
Agreement, has delivered or caused to be delivered to the Indenture Trustee each
item set forth in Section 2.2 of the Mortgage Loan Purchase Agreement.
The transfer to the Issuer by the Seller of the Subsequent Mortgage
Loans identified on the Mortgage Loan Schedule shall be absolute and is intended
by the parties hereto to constitute a sale by the Seller to the Issuer on the
Subsequent Transfer Date of all the Seller's right, title and interest in and to
the Subsequent Mortgage Loans, and other property as and to the extent described
above, and the Issuer hereby acknowledges such transfer. In the event the
transactions set forth herein shall be deemed not to be a sale, the Seller
hereby grants to the Issuer as of the Subsequent Transfer Date a security
interest in all of the Seller's right, title and interest in, to and under all
accounts, chattel papers, general intangibles, contract rights, certificates of
deposit, deposit accounts, instruments, documents, letters of credit, money,
advices of credit, investment property, goods and other property consisting of,
arising under or related to the Subsequent Mortgage Loans, and such other
property, to secure all of the Issuer's obligations hereunder, and this
Agreement shall constitute a security agreement under applicable law. The Seller
agrees to take or cause to be taken such actions and to execute such documents,
including without limitation the filing of all necessary UCC-1 financing
statements filed in the State of Delaware and the Commonwealth of Pennsylvania
1
(which shall be submitted for filing as of the Subsequent Transfer Date), any
continuation statements with respect thereto and any amendments thereto required
to reflect a change in the name or corporate structure of the Seller or the
filing of any additional UCC-1 financing statements due to the change in the
principal office of the Seller, as are necessary to perfect and protect the
Issuer's interests in each Subsequent Mortgage Loan and the proceeds thereof.
(b) The expenses and costs relating to the delivery of the Subsequent
Mortgage Loans, this Agreement and the Mortgage Loan Purchase Agreement shall be
borne by the Seller.
(c) Additional terms of the sale are set forth on Attachment A hereto.
Section 2. Representations and Warranties; Conditions Precedent.
(a) The Seller hereby affirms the representations and warranties made by
it and set forth in Section 3.1 of the Mortgage Loan Purchase Agreement that
relate to the Seller or the Subsequent Mortgage Loans as of the date hereof. The
Seller hereby confirms that each of the conditions set forth in Section 2.2(b)
of the Mortgage Loan Purchase Agreement are satisfied as of the date hereof and
further represents and warrants that each Subsequent Mortgage Loan complies with
the requirements of this Agreement and Section 2.2(c) of the Mortgage Loan
Purchase Agreement. GMACM, as Servicer of the Subsequent Mortgage Loans hereby
affirms the representations and warranties made by it regarding the Subsequent
Mortgage Loans as set forth in Section 3.1 of the Mortgage Loan Purchase
Agreement.
(b) The Seller is solvent, is able to pay its debts as they become due
and has capital sufficient to carry on its business and its obligations
hereunder; it will not be rendered insolvent by the execution and delivery of
this Instrument or by the performance of its obligations hereunder nor is it
aware of any pending insolvency; no petition of bankruptcy (or similar
insolvency proceeding) has been filed by or against the Seller prior to the date
hereof.
(c) All terms and conditions of the Mortgage Loan Purchase Agreement
relating to the Subsequent Mortgage Loans are hereby ratified and confirmed;
provided, however, that in the event of any conflict the provisions of this
Agreement shall control over the conflicting provisions of the Mortgage Loan
Purchase Agreement.
Section 3. Recordation of Instrument. To the extent permitted by
applicable law or a memorandum thereof if permitted under applicable law, this
Agreement is subject to recordation in all appropriate public offices for real
property records in all of the counties or other comparable jurisdictions in
which any or all of the properties subject to the related Mortgages are
situated, and in any other appropriate public recording office or elsewhere,
such recordation to be effected by the Servicer at the Noteholders' expense on
direction of the Majority Noteholders or the Enhancer, but only when accompanied
by an Opinion of Counsel to the effect that such recordation materially and
beneficially affects the interests of the Noteholders or the Enhancer or is
necessary for the administration or servicing of the Subsequent Mortgage Loans.
Section 4. GOVERNING LAW. THIS INSTRUMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS
AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
SUCH LAWS.
Section 5. Counterparts. This Instrument may be executed in counterparts,
each of which, when so executed, shall be deemed to be an original and together
shall constitute one and the same instrument.
Section 6. Successors and Assigns. This Agreement shall inure to the
benefit of and be binding upon the Seller and the Issuer and their respective
successors and assigns.
[----------------------------------],
as Seller
By:
Name:
Title:
GMACM HOME EQUITY LOAN TRUST 2000-HE4, as Issuer
By: WILMINGTON TRUST COMPANY,
not in its individual capacity but solely
as
Owner Trustee
By:
Name:
Title:
GMAC MORTGAGE CORPORATION,
as Servicer
By:
Name:
Title:
Attachments
A. Additional terms of sale.
B. Schedule of Subsequent Mortgage Loans.
C. Seller's Officer's Certificate.
D. Seller's Officer's Certificate (confirmation of Enhancer approval).
GMACM HOME EQUITY LOAN TRUST 2000-HE4
ATTACHMENT A TO FORM OF SUBSEQUENT TRANSFER AGREEMENT
------------, ----
A.
1. Subsequent Cut-Off Date:
2. Pricing Date:
3. Subsequent Transfer Date:
4. Aggregate Principal Balance of the Subsequent Mortgage Loans as
of the Subsequent Cut-Off Date:
5. Purchase Price: 100.00%
B.
As to all Subsequent Mortgage Loans:
1. Longest stated term to maturity: months
----------
2. Minimum Loan Rate: %
----------
3. Maximum Loan Rate: %
----------
4. WAC of all Subsequent Mortgage Loans: %
----------
5. WAM of all Subsequent Mortgage Loans: %
----------
6. Largest Principal Balance: $
7. Non-owner occupied Mortgaged Properties: %
----------
8. California zip code concentrations: % and %
---- ----
9. Condominiums: %
----------
10. Single-family: %
----------
11. Weighted average term since origination: %
----------
12. Principal balance of Subsequent Mortgage Loans with respect to $
which the Mortgagor is an employee of GMACM or an affiliate of
GMACM:
13. Number of Subsequent Mortgage Loans with respect to which the
Mortgagor is an employee of GMACM or an affiliate of GMACM:
EXHIBIT 3
FORM OF ADDITION NOTICE
DATE:
Xxxxx Fargo Bank Minnesota, X.X. Xxxxx'x Investors Service, Inc.
00000 Xxxxxx Xxxx Xxxxxxx 00 Xxxxxx Xxxxxx
Xxxxxxxx, Xxxxxxxx 00000 Xxx Xxxx, Xxx Xxxx 00000
MBIA Insurance Corporation Fitch, Inc.
000 Xxxx Xxxxxx Xxx Xxxxx Xxxxxx Xxxxx
Xxxxxx, XX 00000 Xxx Xxxx, Xxx Xxxx 00000
Attention: Insured Portfolio
Management-Structured Finance (GMACM Home
Equity Loan Trust 2000-HE4);
Standard & Poor's, a division of The Wilmington Trust Company
XxXxxx-Xxxx Companies, Inc. 0000 Xxxxx Xxxxxx Xxxxxx
26 Broadway Wilmington, Delaware 19890
Xxx Xxxx, Xxx Xxxx 00000-0000
Re: GMACM Home Equity Loan Trust 2000-HE4
Ladies and Gentlemen:
Pursuant to Section 2.2 of the mortgage loan purchase agreement dated as
of November 29, 2000 (the "Purchase Agreement"), among GMAC Mortgage
Corporation, as a Seller and Servicer, Walnut Grove Home Equity Loan Trust
2000-A, as a Seller, Residential Asset Mortgage Products, Inc., as Purchaser,
GMACM Home Equity Loan Trust 2000-HE4, as Issuer and Xxxxx Fargo Bank Minnesota,
NA, as Indenture Trustee, [_________] has designated the Subsequent Mortgage
Loans identified on the Mortgage Loan Schedule attached hereto to be sold to the
Issuer on , , with an aggregate Principal Balance of $ . Capitalized terms not
otherwise defined herein have the meaning set forth in the Appendix A to the
indenture dated as of November 29, 2000, between the Issuer and the Indenture
Trustee.
Please acknowledge your receipt of this notice by countersigning the
enclosed copy in the space indicated below and returning it to the attention of
the undersigned.
Very truly yours,
[----------------------------],
as Seller
By:
Name:
Title:
ACKNOWLEDGED AND AGREED:
XXXXX FARGO BANK MINNESOTA, N.A.,
as Indenture Trustee
By:
Name:
Title:
