EXHIBIT 99.3
------------
The Class 1-A-1B Cap Contract
IXIS FINANCIAL PRODUCTS INC.
0 Xxxx 00xx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Fax: (000) 000-0000 / Phone: (000) 000-0000 / 6194
DATE: February 28, 2006
TO: Cap Trust,
IndyMac INDX Mortgage Loan Trust 0000-XX0
x/x Xxxxxxxx Bank National Trust Company
0000 Xxxx Xx. Xxxxxx Xxxxx,
Xxxxx Xxx, Xxxxxxxxxx 00000-0000,
Attention: Trust Administration; IN06A2
FAX: (000) 000-0000
("Party B")
FROM: IXIS Financial Products Inc.
0 Xxxx 00xx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Fax: (000) 000-0000 / Phone: (000) 000-0000 / 6194
("Party A")
RE: Interest Rate Cap Transaction
Dear Sir or Madam:
The purpose of this letter agreement (this "Confirmation") is to confirm
the terms and conditions of the Transaction entered into between us on the
Trade Date specified below (the "Transaction").
The definitions and provisions contained in the 2000 ISDA Definitions as
published by the International Swaps and Derivatives Association, Inc. are
incorporated into this Confirmation. In the event of any inconsistency between
those definitions and provisions and this Confirmation, this Confirmation will
govern.
This Confirmation constitutes a "Confirmation" as referred to in, and
supplements, forms part of and is subject to, the ISDA Master Agreement dated
as of February 28, 2006, as amended and supplemented from time to time (the
"Agreement") between Party A and Party B. All provisions contained in the
Agreement govern this Confirmation except as expressly modified below.
1. The Cap Transaction to which this Confirmation relates is a Rate Cap
Transaction, the terms of which are as follow:
General Terms
-------------
Trade Date: February 23, 2006
Effective Date: February 25, 2006
Termination Date: May 25, 2014, subject to adjustment in accordance with the
Following Business Day Convention
Notional Amount: See Amortization Schedule, Schedule A
Floating Amounts:
-----------------
Floating Rate Payer: Party A
Floating Rate: The greater of (a) 0% and (b) the lesser of (1) 0.845% and (2)
USD-LIBOR-BBA with a Designated Maturity of one month minus the
Strike Rate (as set forth in Schedule A).
Floating Rate Payer Period The 25th day of each month of each year, commencing on March 25,
End Dates: 2006 to and including the Termination Date, subject to adjustment
in accordance with the Following Business Day Convention.
Floating Rate Payer Early Payment, one (1) Business Day preceding each Floating Rate
Payment Dates: Payer Period End Date.
Spread: None
Floating Rate Day Actual/360
Count Fraction:
Reset Dates: The first day of each Calculation Period.
Compounding: Inapplicable
Business Days: Any day other than (i) a Saturday or a Sunday, or (ii) a day on which
banking institutions in (1) the city in which the Corporate Trust
Office is located or (2) the States of New York or California are
closed.
2. Procedural Terms:
-----------------
Calculation Agent: Party A
Offices: The Office of Party A for this Cap Transaction is New York.
--------
Account Details:
----------------
Payments to Party A: CITIBANK N.A.
ABA# 000-000-000
Account No.: 00000000
A/C IXISFP
Payments to Party B: Deutsche Bank Trust Company Americas
ABA# 000000000
Account# 00000000
Account Name: NYLTD Funds Control/Stars West
Ref: IndyMac INDX 2006-AR2 (Class 1-A1B Certificates)
Please confirm that the foregoing correctly sets forth the terms and
conditions of our agreement by executing this Confirmation and returning it to
us by facsimile to:
IXIS Financial Products Inc.
(000) 000-0000 (fax)
Attn: Swap Operations
IXIS Financial Products Inc.
By: /s/ Xxxxxxx X. Xxxxxx
-----------------------------------
Authorized Signatory
By: /s/ Xxxxxxxxxxx Xxxxxx
-----------------------------------
Authorized Signatory
Accepted and confirmed as of the Trade Date written above:
Cap Trust,
IndyMac INDX Mortgage Loan Trust 2006-AR2
By: Deustche Bank National Trust Company, not in its individual capacity, but
solely as Cap Trustee
By: /s/ Xxxxxxxx Xxxxxxxxxxx
-----------------------------------
Name: Xxxxxxxx Xxxxxxxxxxx
Title: Associate
SCHEDULE A to the Confirmation dated as of February 28, 2006, Amortization
Schedule: Amortization Schedule,
----------------------------- ----------------------------------- ---------------------
Calculation Period in
respect of the Payment Date
scheduled to occur on*: Notional Amount (USD) Strike Rate (%)
----------------------------- ----------------------------------- ---------------------
3/25/2006 341,043,109.71 9.445
----------------------------- ----------------------------------- ---------------------
4/25/2006 332,382,882.52 9.445
----------------------------- ----------------------------------- ---------------------
5/25/2006 324,483,551.50 9.445
----------------------------- ----------------------------------- ---------------------
6/25/2006 316,984,985.66 9.445
----------------------------- ----------------------------------- ---------------------
7/25/2006 309,649,105.72 9.445
----------------------------- ----------------------------------- ---------------------
8/25/2006 302,472,223.96 9.445
----------------------------- ----------------------------------- ---------------------
9/25/2006 295,450,907.11 9.445
----------------------------- ----------------------------------- ---------------------
10/25/2006 288,581,591.50 9.445
----------------------------- ----------------------------------- ---------------------
11/25/2006 281,860,731.60 9.445
----------------------------- ----------------------------------- ---------------------
12/25/2006 275,284,189.52 9.445
----------------------------- ----------------------------------- ---------------------
1/25/2007 268,847,433.67 9.445
----------------------------- ----------------------------------- ---------------------
2/25/2007 262,541,884.36 9.445
----------------------------- ----------------------------------- ---------------------
3/25/2007 256,354,213.50 9.445
----------------------------- ----------------------------------- ---------------------
4/25/2007 250,284,165.56 9.445
----------------------------- ----------------------------------- ---------------------
5/25/2007 244,346,026.29 9.445
----------------------------- ----------------------------------- ---------------------
6/25/2007 238,537,149.24 9.445
----------------------------- ----------------------------------- ---------------------
7/25/2007 232,854,677.05 9.445
----------------------------- ----------------------------------- ---------------------
8/25/2007 227,295,734.00 9.445
----------------------------- ----------------------------------- ---------------------
9/25/2007 221,857,647.50 9.445
----------------------------- ----------------------------------- ---------------------
10/25/2007 216,537,637.81 9.445
----------------------------- ----------------------------------- ---------------------
11/25/2007 211,332,937.89 9.445
----------------------------- ----------------------------------- ---------------------
12/25/2007 206,240,301.18 9.445
----------------------------- ----------------------------------- ---------------------
1/25/2008 201,256,161.86 9.445
----------------------------- ----------------------------------- ---------------------
2/25/2008 196,373,688.47 9.445
----------------------------- ----------------------------------- ---------------------
3/25/2008 191,582,219.36 9.445
----------------------------- ----------------------------------- ---------------------
4/25/2008 186,881,630.93 9.445
----------------------------- ----------------------------------- ---------------------
5/25/2008 182,283,521.70 9.445
----------------------------- ----------------------------------- ---------------------
6/25/2008 177,785,836.99 9.445
----------------------------- ----------------------------------- ---------------------
7/25/2008 173,386,350.39 9.445
----------------------------- ----------------------------------- ---------------------
8/25/2008 169,082,819.09 9.445
----------------------------- ----------------------------------- ---------------------
9/25/2008 164,873,162.50 9.445
----------------------------- ----------------------------------- ---------------------
10/25/2008 160,754,774.92 9.445
----------------------------- ----------------------------------- ---------------------
11/25/2008 156,725,722.17 9.445
----------------------------- ----------------------------------- ---------------------
12/25/2008 152,783,696.83 9.445
----------------------------- ----------------------------------- ---------------------
1/25/2009 148,925,905.38 9.445
----------------------------- ----------------------------------- ---------------------
2/25/2009 145,133,986.65 9.445
----------------------------- ----------------------------------- ---------------------
3/25/2009 141,412,846.03 9.445
----------------------------- ----------------------------------- ---------------------
4/25/2009 137,728,779.62 9.445
----------------------------- ----------------------------------- ---------------------
5/25/2009 134,126,021.69 9.445
----------------------------- ----------------------------------- ---------------------
6/25/2009 130,595,834.77 9.445
----------------------------- ----------------------------------- ---------------------
7/25/2009 127,137,967.50 9.445
----------------------------- ----------------------------------- ---------------------
8/25/2009 123,652,070.26 9.445
----------------------------- ----------------------------------- ---------------------
9/25/2009 120,155,578.48 9.445
----------------------------- ----------------------------------- ---------------------
10/25/2009 117,228,914.48 9.445
----------------------------- ----------------------------------- ---------------------
11/25/2009 114,408,208.52 9.445
----------------------------- ----------------------------------- ---------------------
12/25/2009 111,654,491.23 9.445
----------------------------- ----------------------------------- ---------------------
1/25/2010 108,951,211.93 9.445
----------------------------- ----------------------------------- ---------------------
2/25/2010 106,301,797.58 9.445
----------------------------- ----------------------------------- ---------------------
3/25/2010 103,705,718.14 9.445
----------------------------- ----------------------------------- ---------------------
4/25/2010 101,171,087.63 9.445
----------------------------- ----------------------------------- ---------------------
5/25/2010 98,685,592.44 9.445
----------------------------- ----------------------------------- ---------------------
6/25/2010 96,253,728.60 9.445
----------------------------- ----------------------------------- ---------------------
7/25/2010 93,880,848.54 9.445
----------------------------- ----------------------------------- ---------------------
8/25/2010 91,565,439.79 9.445
----------------------------- ----------------------------------- ---------------------
----------------------------- ----------------------------------- ---------------------
Calculation Period in
respect of the Payment Date
scheduled to occur on*: Notional Amount (USD) Strike Rate (%)
----------------------------- ----------------------------------- ---------------------
9/25/2010 89,306,373.32 9.445
----------------------------- ----------------------------------- ---------------------
10/25/2010 87,099,449.63 9.445
----------------------------- ----------------------------------- ---------------------
11/25/2010 84,945,988.60 9.445
----------------------------- ----------------------------------- ---------------------
12/25/2010 82,841,325.80 9.445
----------------------------- ----------------------------------- ---------------------
1/25/2011 80,786,791.48 9.445
----------------------------- ----------------------------------- ---------------------
2/25/2011 78,780,093.51 9.445
----------------------------- ----------------------------------- ---------------------
3/25/2011 76,822,481.17 9.445
----------------------------- ----------------------------------- ---------------------
4/25/2011 74,912,887.61 9.445
----------------------------- ----------------------------------- ---------------------
5/25/2011 73,050,145.78 9.445
----------------------------- ----------------------------------- ---------------------
6/25/2011 71,233,116.81 9.445
----------------------------- ----------------------------------- ---------------------
7/25/2011 69,460,689.32 9.445
----------------------------- ----------------------------------- ---------------------
8/25/2011 67,731,778.79 9.445
----------------------------- ----------------------------------- ---------------------
9/25/2011 66,045,326.87 9.445
----------------------------- ----------------------------------- ---------------------
10/25/2011 64,400,300.79 9.445
----------------------------- ----------------------------------- ---------------------
11/25/2011 62,795,692.72 9.445
----------------------------- ----------------------------------- ---------------------
12/25/2011 61,230,519.19 9.445
----------------------------- ----------------------------------- ---------------------
1/25/2012 59,703,820.48 9.445
----------------------------- ----------------------------------- ---------------------
2/25/2012 58,214,660.08 9.445
----------------------------- ----------------------------------- ---------------------
3/25/2012 56,762,124.10 9.445
----------------------------- ----------------------------------- ---------------------
4/25/2012 56,762,124.10 9.445
----------------------------- ----------------------------------- ---------------------
5/25/2012 56,412,465.08 9.445
----------------------------- ----------------------------------- ---------------------
6/25/2012 55,003,343.08 9.445
----------------------------- ----------------------------------- ---------------------
7/25/2012 53,628,912.18 9.445
----------------------------- ----------------------------------- ---------------------
8/25/2012 52,288,327.05 9.445
----------------------------- ----------------------------------- ---------------------
9/25/2012 50,980,762.81 9.445
----------------------------- ----------------------------------- ---------------------
10/25/2012 49,705,414.54 9.445
----------------------------- ----------------------------------- ---------------------
11/25/2012 48,461,496.81 9.445
----------------------------- ----------------------------------- ---------------------
12/25/2012 47,248,243.17 9.445
----------------------------- ----------------------------------- ---------------------
1/25/2013 46,064,905.72 9.445
----------------------------- ----------------------------------- ---------------------
2/25/2013 44,910,754.69 9.445
----------------------------- ----------------------------------- ---------------------
3/25/2013 43,785,077.95 9.445
----------------------------- ----------------------------------- ---------------------
4/25/2013 42,687,180.62 9.445
----------------------------- ----------------------------------- ---------------------
5/25/2013 41,616,384.65 9.445
----------------------------- ----------------------------------- ---------------------
6/25/2013 40,572,028.41 9.445
----------------------------- ----------------------------------- ---------------------
7/25/2013 39,553,466.29 9.445
----------------------------- ----------------------------------- ---------------------
8/25/2013 38,560,068.32 9.445
----------------------------- ----------------------------------- ---------------------
9/25/2013 37,591,219.81 9.445
----------------------------- ----------------------------------- ---------------------
10/25/2013 36,646,320.94 9.445
----------------------------- ----------------------------------- ---------------------
11/25/2013 35,724,786.45 9.445
----------------------------- ----------------------------------- ---------------------
12/25/2013 34,826,045.25 9.445
----------------------------- ----------------------------------- ---------------------
1/25/2014 33,949,540.09 9.445
----------------------------- ----------------------------------- ---------------------
2/25/2014 33,094,727.25 9.445
----------------------------- ----------------------------------- ---------------------
3/25/2014 32,261,076.19 9.445
----------------------------- ----------------------------------- ---------------------
4/25/2014 31,448,069.23 9.445
----------------------------- ----------------------------------- ---------------------
5/25/2014 30,655,201.24 9.445
----------------------------- ----------------------------------- ---------------------
