EXECUTION COPY
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GMACM HOME EQUITY LOAN TRUST 2004-HE5,
as Issuer,
and
XXXXX FARGO BANK, N.A.
as Indenture Trustee
________________________________________
INDENTURE
Dated as of November 30, 2004
________________________________________
GMACM HOME EQUITY LOAN TRUST 2004-HE5
GMACM Home Equity Loan-Backed Term Notes,
Series 2004-HE5
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TABLE OF CONTENTS
PAGE
ARTICLE I Definitions...............................................................2
Section 1.01 Definitions.......................................................2
Section 1.02 Incorporation by Reference of Trust Indenture Act.................2
Section 1.03 Rules of Construction.............................................2
ARTICLE II Original Issuance of Notes................................................3
Section 2.01 Form..............................................................3
Section 2.02 Execution, Authentication and Delivery............................3
ARTICLE III Covenants.................................................................4
Section 3.01 Collection of Payments with Respect to the Mortgage Loans.........4
Section 3.02 Maintenance of Office or Agency...................................4
Section 3.03 Money for Payments to Be Held in Trust; Paying Agent..............4
Section 3.04 Existence.........................................................5
Section 3.05 Priority of Distributions.........................................6
Section 3.06 Protection of Trust Estate........................................8
Section 3.07 Opinions as to Trust Estate.......................................9
Section 3.08 Performance of Obligations; Servicing Agreement..................10
Section 3.09 Negative Covenants...............................................10
Section 3.10 Annual Statement as to Compliance................................11
Section 3.11 Recordation of Assignments.......................................11
Section 3.12 Representations and Warranties Concerning the Mortgage Loans.....11
Section 3.13 Assignee of Record of the Mortgage Loans.........................11
Section 3.14 Servicer as Agent and Bailee of the Indenture Trustee............12
Section 3.15 Investment Company Act...........................................12
Section 3.16 Issuer May Consolidate, etc......................................12
Section 3.17 Successor or Transferee..........................................14
Section 3.18 No Other Business................................................14
Section 3.19 No Borrowing.....................................................14
Section 3.20 Guarantees, Loans, Advances and Other Liabilities................14
Section 3.21 Capital Expenditures.............................................14
Section 3.22 Owner Trustee Not Liable for Certificates or Related
Documents........................................................14
Section 3.23 Restricted Payments..............................................15
Section 3.24 Notice of Events of Default......................................15
Section 3.25 Further Instruments and Acts.....................................15
Section 3.26 Statements to Noteholders........................................15
Section 3.27 Determination of Note Rate.......................................16
Section 3.28 Additional Representations of the Issuer.........................16
Section 3.29 Payments under the Policy........................................17
Section 3.30 Replacement Enhancement..........................................17
ARTICLE IV The Notes; Satisfaction and Discharge of Indenture.......................17
Section 4.01 The Notes........................................................17
Section 4.02 Registration of and Limitations on Transfer and Exchange of
Notes; Appointment of Certificate Registrar......................18
Section 4.03 Mutilated, Destroyed, Lost or Stolen Notes.......................19
Section 4.04 Persons Deemed Owners............................................20
Section 4.05 Cancellation.....................................................20
Section 4.06 Book-Entry Notes.................................................20
Section 4.07 Notices to Depository............................................21
Section 4.08 Definitive Notes.................................................21
Section 4.09 Tax Treatment....................................................22
Section 4.10 Satisfaction and Discharge of Indenture..........................22
Section 4.11 Application of Trust Money.......................................23
Section 4.12 Subrogation and Cooperation......................................23
Section 4.13 Repayment of Monies Held by Paying Agent.........................24
Section 4.14 Temporary Notes..................................................24
ARTICLE V Default And Remedies.....................................................24
Section 5.01 Events of Default................................................24
Section 5.02 Acceleration of Maturity; Rescission and Annulment...............25
Section 5.03 Collection of Indebtedness and Suits for Enforcement by
Indenture Trustee................................................25
Section 5.04 Remedies; Priorities.............................................27
Section 5.05 Optional Preservation of the Trust Estate........................29
Section 5.06 Limitation of Suits..............................................29
Section 5.07 Unconditional Rights of Noteholders to Receive Principal and
Interest.........................................................30
Section 5.08 Restoration of Rights and Remedies...............................30
Section 5.09 Rights and Remedies Cumulative...................................30
Section 5.10 Delay or Omission Not a Waiver...................................31
Section 5.11 Control by Enhancer or Noteholders...............................31
Section 5.12 Waiver of Past Defaults..........................................31
Section 5.13 Undertaking for Costs............................................32
Section 5.14 Waiver of Stay or Extension Laws.................................32
Section 5.15 Sale of Trust Estate.............................................32
Section 5.16 Action on Notes..................................................34
Section 5.17 Performance and Enforcement of Certain Obligations...............34
ARTICLE VI The Indenture Trustee....................................................35
Section 6.01 Duties of Indenture Trustee......................................35
Section 6.02 Rights of Indenture Trustee......................................36
Section 6.03 Individual Rights of Indenture Trustee...........................38
Section 6.04 Indenture Trustee's Disclaimer...................................38
Section 6.05 Notice of Event of Default.......................................38
Section 6.06 Reports by Indenture Trustee to Noteholders......................38
Section 6.07 Compensation and Indemnity.......................................38
Section 6.08 Replacement of Indenture Trustee.................................39
Section 6.09 Successor Indenture Trustee by Merger............................40
Section 6.10 Appointment of Co-Indenture Trustee or Separate Indenture
Trustee..........................................................40
Section 6.11 Eligibility; Disqualification....................................41
Section 6.12 Preferential Collection of Claims Against Issuer.................42
Section 6.13 Representations and Warranties...................................42
Section 6.14 Directions to Indenture Trustee..................................42
Section 6.15 Indenture Trustee May Own Securities.............................43
ARTICLE VII Noteholders' Lists and Reports...........................................43
Section 7.01 Issuer to Furnish Indenture Trustee Names and Addresses of
Noteholders......................................................43
Section 7.02 Preservation of Information; Communications to Noteholders.......43
Section 7.03 Reports by Issuer................................................43
Section 7.04 Reports by Indenture Trustee.....................................44
ARTICLE VIII Accounts, Disbursements and Releases.....................................44
Section 8.01 Collection of Money..............................................44
Section 8.02 Trust Accounts...................................................44
Section 8.03 Officer's Certificate............................................45
Section 8.04 Termination Upon Distribution to Noteholders.....................45
Section 8.05 Release of Trust Estate..........................................45
Section 8.06 Surrender of Notes Upon Final Payment............................46
ARTICLE IX Supplemental Indentures..................................................46
Section 9.01 Supplemental Indentures Without Consent of Noteholders...........46
Section 9.02 Supplemental Indentures With Consent of Noteholders..............47
Section 9.03 Execution of Supplemental Indentures.............................49
Section 9.04 Effect of Supplemental Indenture.................................49
Section 9.05 Conformity with Trust Indenture Act..............................49
Section 9.06 Reference in Notes to Supplemental Indentures....................49
ARTICLE X Miscellaneous............................................................50
Section 10.01 Compliance Certificates and Opinions, etc........................50
Section 10.02 Form of Documents Delivered to Indenture Trustee.................51
Section 10.03 Acts of Noteholders..............................................52
Section 10.04 Notices, etc., to Indenture Trustee, Issuer, Enhancer and
Rating Agencies..................................................53
Section 10.05 Notices to Noteholders; Waiver...................................53
Section 10.06 Alternate Payment and Notice Provisions..........................54
Section 10.07 Conflict with Trust Indenture Act................................54
Section 10.08 Effect of Headings...............................................54
Section 10.09 Successors and Assigns...........................................54
Section 10.10 Severability.....................................................54
Section 10.11 Benefits of Indenture............................................55
Section 10.12 Legal Holidays...................................................55
Section 10.13 GOVERNING LAW....................................................55
Section 10.14 Counterparts.....................................................55
Section 10.15 Recording of Indenture...........................................55
Section 10.16 Issuer Obligation................................................55
Section 10.17 No Petition......................................................56
Section 10.18 Inspection.......................................................56
ARTICLE XI REMIC Provisions.........................................................57
Section 11.01 REMIC Administration. ...........................................57
Section 11.02 Servicer, REMIC Administrator and Indenture Trustee
Indemnification..................................................60
Section 11.03 Designation of REMIC(s). ........................................61
EXHIBITS
Exhibit A-1 - Form of Class A Notes......................................Exhibit A-1-1
Exhibit A-2 - Form of Class A-IO Notes...................................Exhibit A-2-1
Appendix A - Definitions.................................................Appendix A-1
This Indenture, dated as of November 30, 2004, is between GMACM Home
Equity Loan Trust 2004-HE5, a Delaware statutory trust, as issuer (the
"Issuer"), and Xxxxx Fargo Bank, N.A. a national banking association, as
indenture trustee (the "Indenture Trustee").
WITNESSETH:
Each party hereto agrees as follows for the benefit of the other party
and for the equal and ratable benefit of the Noteholders of the Issuer's Series
2004-HE5 GMACM Home Equity Loan-Backed Term Notes (the "Notes").
GRANTING CLAUSE:
The Issuer hereby Grants to the Indenture Trustee on the Closing Date,
as trustee for the benefit of the Noteholders and the Enhancer, all of the
Issuer's right, title and interest in and to all accounts, chattel paper,
general intangibles, contract rights, payment intangibles, 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 whether now existing or hereafter created in any of
the following: (a) the Initial Mortgage Loans and any Subsequent Mortgage Loans
and all monies due or to become due thereunder after the Cut-Off Date or
Subsequent Cut-Off Date, as applicable; (b) the Note Payment Account, and all
funds on deposit or credited thereto from time to time and all proceeds thereof;
(c) the Capitalized Interest Account, and all funds on deposit or credited
thereto from time to time (other than any income thereon), and the Pre-Funding
Account, and all funds on deposit or credited thereto from time to time; (d) all
hazard insurance policies; (e) the Policy; and (f) all present and future
claims, demands, causes and choses in action in respect of any or all of the
foregoing and all payments on or under, and all proceeds of every kind and
nature whatsoever in respect of, any or all of the foregoing and all payments on
or under, and all proceeds of every kind and nature whatsoever in the conversion
thereof, voluntary or involuntary, into cash or other liquid property, all cash
proceeds, accounts, accounts receivable, notes, drafts, acceptances, checks,
deposit accounts, rights to payment of any and every kind, and other forms of
obligations and receivables, instruments and other property which at any time
constitute all or part of or are included in the proceeds of any of the
foregoing (collectively, the "Trust Estate" or the "Collateral").
The foregoing Grant is made in trust to secure the payment of principal
of and interest on, and any other amounts owing in respect of, the Notes,
equally and ratably without prejudice, priority or distinction, and to secure
compliance with the provisions of this Indenture, all as provided in this
Indenture.
The foregoing Grant shall inure to the benefit of the Enhancer in
respect of draws made on the Policy and amounts owing from time to time pursuant
to the Insurance Agreement (regardless of whether such amounts relate to the
Notes or the Certificates), and such Grant shall continue in full force and
effect for the benefit of the Enhancer until all such amounts owing to it have
been repaid in full.
The Indenture Trustee, as trustee on behalf of the Noteholders,
acknowledges such Grant, accepts the trust under this Indenture in accordance
with the provisions hereof and agrees to perform its duties as Indenture Trustee
as required herein.
ARTICLE I
Definitions
Section 1.01 Definitions. For all purposes of this Indenture, 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 attached hereto as Appendix A, which is
incorporated by reference herein. All other capitalized terms used herein shall
have the meanings specified herein.
Section 1.02 Incorporation by Reference of Trust Indenture Act. Whenever this
Indenture refers to a provision of the Trust Indenture Act (the "TIA"), such
provision is incorporated by reference in and made a part of this Indenture. The
following TIA terms used in this Indenture have the following meanings:
"Commission" means the Securities and Exchange Commission.
"indenture securities" means the Notes.
"indenture security holder" means a Noteholder.
"indenture to be qualified" means this Indenture.
"indenture trustee" or "institutional trustee" means the Indenture Trustee.
"obligor" on the indenture securities means the Issuer and any other
obligor on the indenture securities.
All other TIA terms used in this Indenture that are defined by
TIA, defined by TIA reference to another statute or defined by Commission rule
have the meaning assigned to them by such definitions.
Section 1.03 Rules of Construction. Unless the context otherwise requires:
(a) a term has the meaning assigned to it;
(b) an accounting term not otherwise defined has the meaning assigned to it in
accordance with generally accepted accounting principles as in effect from time
to time;
(c) "or" includes "and/or";
(d) "including" means "including without limitation";
(e) words in the singular include the plural and words in the plural include the
singular;
(f) the term "proceeds" has the meaning ascribed thereto in the UCC; and
(g) 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
Original Issuance of Notes
Section 2.01 Form. The Notes, together with the Indenture Trustee's certificate
of authentication, shall be in substantially the form set forth in Exhibit A,
with such appropriate insertions, omissions, substitutions and other variations
as are required or permitted by this Indenture and may have such letters,
numbers or other marks of identification and such legends or endorsements placed
thereon as may, consistently herewith, be determined by the officers executing
the Notes, as evidenced by their execution thereof. Any portion of the text of
any Note may be set forth on the reverse thereof, with an appropriate reference
thereto on the face of such Note.
The Notes shall be typewritten, printed, lithographed or engraved or
produced by any combination of these methods, all as determined by the
Authorized Officers executing such Notes, as evidenced by their execution of
such Notes.
The terms of the Notes set forth in Exhibit A are part of the terms of
this Indenture.
Section 2.02 Execution, Authentication and Delivery. The Notes shall be executed
on behalf of the Issuer by any of its Authorized Officers. The signature of any
such Authorized Officer on the Notes may be manual or facsimile.
Notes bearing the manual or facsimile signature of individuals who were
at any time Authorized Officers of the Issuer shall bind the Issuer,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Notes or did not hold
such offices at the date of such Notes.
The Indenture Trustee shall upon Issuer Request authenticate and deliver
Notes for original issue in an aggregate initial principal amount of
$700,000,000. The Class A-1, Class A-2, Class A-3, Class A-4, Class A-5, Class
A-6 Notes and Class A-IO Notes shall have initial principal or notional amounts
of the Initial Class A-1 Note Balance, Initial Class A-2 Note Balance, Initial
Class A-3 Note Balance, Initial Class A-4 Note Balance, Initial Class A-5 Note
Balance, Initial Class A-6 Note Balance and the Initial Class A-IO Notional
Amount, respectively.
Each Note shall be dated the date of its authentication. The Notes,
other than the Class A-IO Notes, shall be issuable as registered Notes, and the
Notes shall be issuable in minimum denominations of $25,000 and integral
multiples of $1,000 in excess thereof. The Class A-IO Notes shall be issued in
minimum denominations of $2,000,000 Notional Amount and in integral multiples of
$1,000,000 in excess thereof.
No Note shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose, unless there appears on such Note a
certificate of authentication substantially in the form provided for herein
executed by the Indenture Trustee by the manual signature of one of its
authorized signatories, and such certificate upon any Note shall be conclusive
evidence, and the only evidence, that such Note has been duly authenticated and
delivered hereunder.
ARTICLE III
Covenants
Section 3.01 Collection of Payments with Respect to the Mortgage Loans. The
Indenture Trustee shall establish and maintain with itself the Note Payment
Account in which the Indenture Trustee shall, subject to the terms of this
paragraph, deposit, on the same day as it is received from the Servicer, each
remittance received by the Indenture Trustee with respect to the Mortgage Loans.
The Indenture Trustee shall make all payments of principal of and interest on
the Notes, subject to Section 3.03 as provided in Section 3.05 herein from
monies on deposit in the Note Payment Account.
Section 3.02 Maintenance of Office or Agency. The Issuer will maintain in the
City of Minneapolis, Minnesota, an office or agency where, subject to
satisfaction of conditions set forth herein, Notes may be surrendered for
registration of transfer or exchange, and where notices and demands to or upon
the Issuer in respect of the Notes and this Indenture may be served. The Issuer
hereby initially appoints the Indenture Trustee to serve as its agent for the
foregoing purposes. If at any time the Issuer shall fail to maintain any such
office or agency or shall fail to furnish the Indenture Trustee with the address
thereof, such surrenders, notices and demands may be made or served at the
Corporate Trust Office, and the Issuer hereby appoints the Indenture Trustee as
its agent to receive all such surrenders, notices and demands.
Section 3.03 Money for Payments to Be Held in Trust; Paying Agent. As provided
in Section 3.01, all payments of amounts due and payable with respect to any
Notes that are to be made from amounts withdrawn from the Note Payment Account
pursuant to Section 3.01 shall be made on behalf of the Issuer by the Indenture
Trustee or by the Paying Agent, and no amounts so withdrawn from the Note
Payment Account for payments of Notes shall be paid over to the Issuer except as
provided in this Section 3.03. The Issuer hereby appoints the Indenture Trustee
to act as initial Paying Agent hereunder. The Issuer will cause each Paying
Agent other than the Indenture Trustee to execute and deliver to the Indenture
Trustee an instrument in which such Paying Agent shall agree with the Indenture
Trustee (and if the Indenture Trustee acts as Paying Agent, it hereby so
agrees), subject to the provisions of this Section 3.03, that such Paying Agent
will:
(a) hold all sums held by it for the payment of amounts due with respect to the
Notes in trust for the benefit of the Persons entitled thereto until such sums
shall be paid to such Persons or otherwise disposed of as herein provided and
pay such sums to such Persons as herein provided; (b) give the Indenture Trustee
and the Enhancer written notice of any default by the Issuer of which it has
actual knowledge in the making of any payment required to be made with respect
to the Notes;
(c) at any time during the continuance of any such default, upon the written
request of the Indenture Trustee, forthwith pay to the Indenture Trustee all
sums so held in trust by such Paying Agent;
(d) immediately resign as Paying Agent and forthwith pay to the Indenture
Trustee all sums held by it in trust for the payment of Notes, if at any time it
ceases to meet the standards required to be met by a Paying Agent at the time of
its appointment;
(e) comply with all requirements of the Code with respect to the withholding
from any payments made by it on any Notes of any applicable withholding taxes
imposed thereon and with respect to any applicable reporting requirements in
connection therewith (including reporting payments of interest on the Notes in
excess of interest at the Net WAC Cap, Class A-1 Net Funds Cap or Available
Funds Rate and interest on any of the foregoing in the form of Interest Carry
Forward Amounts, as payments on an interest rate cap agreement); and
(f) deliver to the Indenture Trustee a copy of the statement to Noteholders
prepared with respect to each Payment Date by the Servicer pursuant to Section
4.01 of the Servicing Agreement.
The Issuer may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, by Issuer
Request direct any Paying Agent to pay to the Indenture Trustee all sums held in
trust by such Paying Agent, such sums to be held by the Indenture Trustee upon
the same trusts as those upon which the sums were held by such Paying Agent; and
upon such payment by any Paying Agent to the Indenture Trustee, such Paying
Agent shall be released from all further liability with respect to such money.
Subject to applicable laws with respect to escheat of funds, any money
held by the Indenture Trustee or any Paying Agent in trust for the payment of
any amount due with respect to any Note and remaining unclaimed for one year
after such amount has become due and payable shall be discharged from such trust
and be paid to the Issuer on Issuer Request; and the Noteholder of such Note
shall thereafter, as an unsecured general creditor, look only to the Issuer for
payment thereof (but only to the extent of the amounts so paid to the Issuer),
and all liability of the Indenture Trustee or such Paying Agent with respect to
such trust money shall thereupon cease; provided, however, that the Indenture
Trustee or such Paying Agent, before being required to make any such repayment,
shall at the expense and direction of the Issuer cause to be published once, in
an Authorized Newspaper, notice that such money remains unclaimed and that,
after a date specified therein, which shall not be less than 30 days from the
date of such publication, any unclaimed balance of such money then remaining
will be repaid to the Issuer. The Indenture Trustee may also adopt and employ,
at the expense and direction of the Issuer, any other reasonable means of
notification of such repayment (including, but not limited to, mailing notice of
such repayment to Noteholders the Notes which have been called but have not been
surrendered for redemption or whose right to or interest in monies due and
payable but not claimed is determinable from the records of the Indenture
Trustee or of any Paying Agent, at the last address of record for each such
Noteholder).
Section 3.04 Existence. The Issuer will keep in full effect its existence,
rights and franchises as a statutory trust under the laws of the State of
Delaware (unless it becomes, or any successor Issuer hereunder is or becomes,
organized under the laws of any other state or of the United States of America,
in which case the Issuer will keep in full effect its existence, rights and
franchises under the laws of such other jurisdiction) and will obtain and
preserve its qualification to do business in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this Indenture, the Notes, the Mortgage Loans and each other
instrument or agreement included in the Trust Estate.
Section 3.05 Priority of Distributions.
(a) In accordance with Section 3.03(a) of the Servicing Agreement, the
priority of distributions on each Payment Date from Principal
Collections, Interest Collections and draws under the Policy for such
Payment Date in the Note Payment Account, any optional Servicer Advances
in respect of the related Collection Period and any amounts transferred
to the Note Payment Account from the Pre-Funding Account and/or
Capitalized Interest Account pursuant to Sections 3.17 and 3.18 of the
Servicing Agreement, is as follows:
(i) first, to pay to the Enhancer, the Premium for the Policy for such
Payment Date and any previously unpaid Premiums, with interest thereon
as provided in the Insurance Agreement;;
(ii) second, for payment by the Paying Agent to the Noteholders of each Class of
Notes, pro rata, interest for the related Interest Period at the related
Note Rate on the related Note Balance, or the Notional Amount in the case
of the Class A-IO Notes, immediately prior to such Payment Date, and
interest due and unpaid pursuant to this clause on each Class of Notes for
any prior Payment Date plus interest on such unpaid amounts at the related
Note Rate (to the extent that amounts paid to the Class A-IO Certificates
pursuant to this paragraph represent payment of any Class A-IO Net Funds
Amount, such amounts shall be treated for tax purposes as having been paid
pursuant to the irrevocable instruction of the Class SB Certificateholders
as the parties otherwise entitled to such amounts as the owners of the
REMIC III Regular Interest SB-IO, as set forth in the Trust Agreement and
incorporated herein),
(iii) third, for payment by the Paying Agent to the Noteholders, as a
distribution of principal on the Notes, the Principal Collection
Distribution Amount for such Payment Date to be allocated to each Class
of Notes as described in Section 3.05(b) below, until the Note Balances
thereof have been reduced to zero,
(iv) fourth, for payment by the Paying Agent to each Class of Notes, as a
distribution of principal on the Notes, in the priority set forth in
section 3.05(b), an amount equal to the Liquidation Loss Distribution
Amount (excluding Liquidation Loss Amounts that have been allocated to
the reduction of the Note Balance of the Notes pursuant to Section
3.05(c) hereof) until the Note Balance of each Class of Notes has been
reduced to zero;
(v) fifth, so long as no Enhancer Default has occurred and is continuing, to
the Enhancer, to reimburse it for prior draws made on the Policy, with
interest thereon as provided in the Insurance Agreement.
(vi) sixth, for payment by the Paying Agent to each Class of Notes then
outstanding, to pay any Liquidation Loss Amounts, pro rata, among the
then outstanding Classes of Notes, allocated to the reduction of the
Note Balance of such Class of Notes pursuant to Section 3.05(c) hereof
and not previously reimbursed, plus interest on such amounts at the
related Note Rate;
(vii) seventh, on each Payment Date occurring on or after the Payment Date in
March 2005, for payment by the Paying Agent to the Noteholders of the
Class of Notes in the priority set forth in Section 3.05(b), the
Overcollateralization Increase Amount, if any, until the Note Balance of
each Class of Notes has been reduced to zero;
(viii) eighth, to pay to the Enhancer, any other amounts owed to the Enhancer
pursuant to the Insurance Agreement;
(ix) ninth, to the Indenture Trustee, any amounts owing to the Indenture
Trustee pursuant to Section 6.07 to the extent remaining unpaid;
(x) tenth, from Excess Spread remaining after the distributions pursuant to
clauses (i) through (ix), to pay each Class of Notes (other than the
Class A-IO Notes) and for payment by the Paying Agent pursuant to the
irrevocable instruction of the holders of the Class SB Certificates (as
the parties otherwise entitled to such amounts as the owners of the
REMIC III Regular Interests SB) as set forth in the Trust Agreement and
incorporated herein, to the Class A-IO Noteholders, pro rata in
accordance with their respective amounts of Interest Carry Forward
Amounts, and
(xi) eleventh, any remaining amount, to the Distribution Account, for
distribution to the Certificateholders by the Certificate Paying Agent;
provided, however, that in the event that on a Payment Date an Enhancer Default
shall have occurred and be continuing, then the priorities of distributions
described above will be adjusted such that payments of any amounts to be paid to
the Enhancer will not be paid until the full amount of interest and principal in
accordance with clauses (ii) through (iv) and (vi) above that are due and
required to be paid by the Enhancer on the Notes on such Payment Date have been
paid and provided, further, that on the Final Payment Date, the amount to be
paid pursuant to clause (iii) above shall be equal to the Note Balance
immediately prior to such Payment Date. For purposes of the foregoing, required
payments of principal on the Notes on each Payment Date will include the portion
allocable to the Notes of all Liquidation Loss Amounts for such Payment Date and
for all previous Collection Periods until paid or covered in full, to the extent
not otherwise covered by a Liquidation Loss Distribution Amount or a draw on the
Policy (up to the outstanding Note Balance).
Amounts distributed to the Noteholders (other than the Class A-IO Notes)
pursuant to the above clauses (ii), (iii), (iv), (vi) and (vii) from Interest
Collections, Principal Collections and Advances shall be treated for tax
purposes as distributions with respect to the REMIC III Regular Interests X-0,
X-0, X-0, X-0, A-5 and A-6, respectively. Amounts distributed to the Class A-IO
Noteholders pursuant to clauses (ii) and (x) above shall be treated for tax
purposes as follows: Amounts distributed pursuant to clause (ii) shall be
treated as having been distributed to the REMIC III Regular Interest A-IO to the
extent that they represent interest at the REMIC III Remittance Rate and as
having been distributed to the REMIC III Regular Interest SB-IO to the extent,
if any, that they represent the Class A-IO Net Funds Amount. Amounts distributed
pursuant to clause (x) shall be treated as having been distributed to the REMIC
III Regular Interest SB-IO. Amounts treated as having been distributed to the
Class SB Certificateholders as the owners of REMIC III Regular Interest SB-IO
shall be treated as then paid by the Class SB Certificateholders to the Class
A-IO Noteholders pursuant to a notional principal contract for the payment of
such amounts.
On each Payment Date, the Paying Agent shall apply, from amounts on
deposit in the Note Payment Account, and in accordance with the Servicing
Certificate, the amounts set forth above in the order of priority set forth
above.
Amounts paid to Noteholders of any Class shall be paid in respect of the
Notes of that Class in accordance with the applicable percentage as set forth in
paragraph (b) below. Interest on each Class of the Class A-1 Notes will be
computed on the basis of the actual number of days in each Interest Period and a
360-day year. Interest on the Class A-2 Notes, the Class A-3 Notes, the Class
A-4 Notes, Class A-5 Notes, Class A-6 Notes and the Class A-IO Notes will be
computed on the basis of a 360-day year consisting of twelve 30-day months. Any
installment of interest or principal payable on any Note that is punctually paid
or duly provided for by the Issuer on the applicable Payment Date shall be paid
to the Noteholder of record thereof on the immediately preceding Record Date by
wire transfer to an account specified in writing by such Noteholder reasonably
satisfactory to the Indenture Trustee, or by check or money order mailed to such
Noteholder at such Noteholder's address appearing in the Note Register, the
amount required to be distributed to such Noteholder on such Payment Date
pursuant to such Noteholder's Notes; provided, that the Indenture Trustee shall
not pay to any such Noteholder any amounts required to be withheld from a
payment to such Noteholder by the Code.
(b) The Principal Distribution Amount distributable pursuant to Section
3.05(a)(iii), Liquidation Loss Distribution Amounts distributable to the
holders of the Notes pursuant to Section 3.05(a)(iv) and
Overcollateralization Increase Amounts distributable to the holders of
the Notes pursuant to Section 3.05(a)(vii) will be distributed as
follows:
(i) first, to the Class A-6 Notes, an amount equal to the Class A-6 Lockout
Distribution Amount for that payment date, until the Note Balance
thereof has been reduced to zero;
(ii) second, to the Class A-1, Class A-2, Class A-3, Class A-4. Class A-5 and
Class A-6, Notes, in that order, in each case until the Note Balance
thereof has been reduced to zero.
provided, however, that if an Enhancer Default has occurred and is continuing,
payments of principal on the Notes (other than the Class A-IO Notes) will be
paid pro rata to the outstanding Classes of Notes. Principal of each Note (other
than the Class A-IO Notes) shall be due and payable in full on the Final Payment
Date as provided in the applicable form of Note set forth in Exhibits A-1 and
A-2. The Class A-IO Notes shall not be entitled to payments of principal. All
principal payments on the Notes of each Class shall be made in accordance with
the priorities set forth in paragraphs (a) and (b) above to the Noteholders
entitled thereto in accordance with the related Percentage Interests represented
thereby. Upon written notice to the Indenture Trustee by the Issuer, the
Indenture Trustee shall notify the Person in the name of which a Note is
registered at the close of business on the Record Date preceding the Final
Payment Date or other final Payment Date, as applicable. Such notice shall be
mailed or faxed no later than five Business Days prior to the Final Payment Date
or such other final Payment Date and, unless such Note is then a Book-Entry
Note, shall specify that payment of the principal amount and any interest due
with respect to such Note at the Final Payment Date or such other final Payment
Date will be payable only upon presentation and surrender of such Note, and
shall specify the place where such Note may be presented and surrendered for
such final payment.
(c) On each Payment Date, the Overcollateralization Amount available to cover
any Liquidation Loss Amounts on such Payment Date shall be deemed to be reduced
by an amount equal to such Liquidation Loss Amounts (except to the extent that
such Liquidation Loss Amounts were covered on such Payment Date by a Liquidation
Loss Distribution Amount). In the event that an Enhancer Default has occurred
and is continuing, on each Payment Date, the amount of any Liquidation Loss
Amounts with respect to the prior calendar month that were not distributed
pursuant to Sections 3.05(a)(iv) will be applied as follows: first, to reduce
any Overcollateralization Amount (after allocation of Principal Collections and
Interest Collections on the Mortgage Loans for such Payment Date) until such
amount has been reduced to zero; and second, to reduce the Note Balance of each
Class of Class A Notes (other than the Class A-IO Notes) then outstanding, pro
rata, until the Note Balance of each Class of Class A Notes has been reduced to
zero.
Section 3.06 Protection of Trust Estate.
(a) The Issuer shall from time to time execute and deliver all such
supplements and amendments hereto and all such financing statements,
continuation statements, instruments of further assurance and other
instruments, and will take such other action necessary or advisable to:
(i) maintain or preserve the lien and security interest (and the priority
thereof) of this Indenture or carry out more effectively the purposes
hereof;
(ii) perfect, publish notice of or protect the validity of any Grant made or
to be made by this Indenture;
(iii) cause the Trust to enforce any of the Mortgage Loans; or
(iv) preserve and defend title to the Trust Estate and the rights of the
Indenture Trustee and the Noteholders in such Trust Estate against the
claims of all persons and parties.
(b) Except as otherwise provided in this Indenture, the Indenture Trustee
shall not remove any portion of the Trust Estate that consists of money
or is evidenced by an instrument, certificate or other writing from the
jurisdiction in which it was held at the date of the most recent Opinion
of Counsel delivered pursuant to Section 3.07 (or from the jurisdiction
in which it was held as described in the Opinion of Counsel delivered at
the Closing Date pursuant to Section 3.07, if no Opinion of Counsel has
yet been delivered pursuant to Section 3.07) unless the Trustee shall
have first received an Opinion of Counsel to the effect that the lien
and security interest created by this Indenture with respect to such
property will continue to be maintained after giving effect to such
action or actions.
The Issuer hereby designates the Indenture Trustee its agent and
attorney-in-fact to execute any financing statement, continuation statement or
other instrument required to be executed pursuant to this Section 3.06.
Section 3.07 Opinions as to Trust Estate.
On the Closing Date, the Issuer shall furnish to the Indenture Trustee
and the Owner Trustee an Opinion of Counsel at the expense of the Issuer stating
that, upon filing of appropriate financing statements relating to the Trust
Estate in the State of Delaware, the Indenture Trustee will have a perfected,
first priority security interest in such Mortgage Loans.
On or before December 31st in each calendar year, beginning in 2004, the
Issuer shall furnish to the Indenture Trustee an Opinion of Counsel at the
expense of the Issuer either stating that, in the opinion of such counsel, no
further action is necessary to maintain a perfected, first priority security
interest in the Mortgage Loans until December 31 in the following calendar year
or, if any such action is required to maintain such security interest in the
Mortgage Loans, such Opinion of Counsel shall also describe the recording,
filing, re-recording and refiling of this Indenture, any indentures supplemental
hereto and any other requisite documents and the execution and filing of any
financing statements and continuation statements that will, in the opinion of
such counsel, be required to maintain the security interest in the Mortgage
Loans until December 31 in the following calendar year.
Section 3.08 Performance of Obligations; Servicing Agreement.
(a) The Issuer shall punctually perform and observe all of its obligations and
agreements contained in this Indenture, the Basic Documents and in the
instruments and agreements included in the Trust Estate.
(b) The Issuer may contract with other Persons to assist it in performing its
duties under this Indenture, and any performance of such duties by a Person
identified to the Indenture Trustee in an Officer's Certificate of the Issuer
shall be deemed to be action taken by the Issuer.
(c) The Issuer shall not take any action or permit any action to be taken by
others that would release any Person from any of such Person's covenants or
obligations under any of the documents relating to the Mortgage Loans or under
any instrument included in the Trust Estate, or that would result in the
amendment, hypothecation, subordination, termination or discharge of, or impair
the validity or effectiveness of, any of the documents relating to the Mortgage
Loans or any such instrument, except such actions as the Servicer is expressly
permitted to take in the Servicing Agreement.
(d) The Issuer may retain an administrator and may enter into contracts with
other Persons for the performance of the Issuer's obligations hereunder, and
performance of such obligations by such Persons shall be deemed to be
performance of such obligations by the Issuer.
Section 3.09 Negative Covenants. So long as any Notes are Outstanding, the
Issuer shall not:
(a) except as expressly permitted by this Indenture, sell, transfer, exchange or
otherwise dispose of the Trust Estate, unless directed to do so by the Indenture
Trustee pursuant to Section 5.04 hereof;
(b) claim any credit on, or make any deduction from the principal or interest
payable in respect of, the Notes (other than amounts properly withheld from such
payments under the Code) or assert any claim against any present or former
Noteholder by reason of the payment of the taxes levied or assessed upon any
part of the Trust Estate;
(c) (i) permit the validity or effectiveness of this Indenture to be impaired,
or permit the lien of this Indenture to be amended, hypothecated, subordinated,
terminated or discharged, or permit any Person to be released from any covenants
or obligations with respect to the Notes under this Indenture except as may be
expressly permitted hereby, (ii) permit any lien, charge, excise, claim,
security interest, mortgage or other encumbrance (other than the lien of this
Indenture) to be created on or extend to or otherwise arise upon or burden the
Trust Estate or any part thereof or any interest therein or the proceeds thereof
or (iii) permit the lien of this Indenture not to constitute a valid first
priority security interest in the Trust Estate; or
(d) impair or cause to be impaired the Issuer's interest in the Mortgage Loans,
the Purchase Agreement or in any other Basic Document, if any such action would
materially and adversely affect the interests of the Noteholders or the
Enhancer.
Section 3.10 Annual Statement as to Compliance. The Issuer shall deliver to the
Indenture Trustee, within 120 days after the end of each fiscal year of the
Issuer (commencing with the fiscal year ending on December 31, 2004), an
Officer's Certificate stating, as to the Authorized Officer signing such
Officer's Certificate, that:
(a) a review of the activities of the Issuer during such year and of its
performance under this Indenture and the Trust Agreement has been made under
such Authorized Officer's supervision; and
(b) to the best of such Authorized Officer's knowledge, based on such review,
the Issuer has complied with all conditions and covenants under this Indenture
and the provisions of the Trust Agreement throughout such year, or, if there has
been a default in its compliance with any such condition or covenant, specifying
each such default known to such Authorized Officer and the nature and status
thereof.
Section 3.11 Recordation of Assignments. The Issuer shall enforce the obligation
of any of the Sellers under the Purchase Agreement to submit or cause to be
submitted for recordation all Assignments of Mortgages within 60 days of receipt
of recording information by the Servicer.
Section 3.12 Representations and Warranties Concerning the Mortgage Loans. The
Indenture Trustee, as pledgee of the Mortgage Loans, shall have the benefit of
the representations and warranties made by GMACM in Sections 3.1(a) and 3.1(b)
of the Purchase Agreement and the benefit of the representations and warranties
made by WG Trust in Sections 3.1(c) and 3.1(d) of the Purchase Agreement,
concerning the Mortgage Loans and the right to enforce the remedies against
GMACM or WG Trust provided in Section 3.1(a), Section 3.1(b), Section 3.1(c) or
Section 3.1(d), as applicable, to the same extent as though such representations
and warranties were made directly to the Indenture Trustee.
Section 3.13 Assignee of Record of the Mortgage Loans. As pledgee of the
Mortgage Loans, the Indenture Trustee shall hold title to the Mortgage Loans by
being named as payee in the endorsements or assignments of the Mortgage Notes
and assignee in the Assignments of Mortgage to be delivered under Section 2.1 of
the Purchase Agreement. Except as expressly provided in the Purchase Agreement
or in the Servicing Agreement with respect to any specific Mortgage Loan, the
Indenture Trustee shall not execute any endorsement or assignment or otherwise
release or transfer such title to any of the Mortgage Loans until such time as
the remaining Trust Estate may be released pursuant to Section 8.05(b). The
Indenture Trustee's holding of such title shall in all respects be subject to
its fiduciary obligations to the Noteholders hereunder.
Section 3.14 Servicer as Agent and Bailee of the Indenture Trustee. Solely for
purposes of perfection under Section 9-313 or 9-314 of the UCC or other similar
applicable law, rule or regulation of the state in which such property is held
by the Servicer, the Issuer and the Indenture Trustee hereby acknowledge that
the Servicer is acting as agent and bailee of the Indenture Trustee in holding
amounts on deposit in the Custodial Account pursuant to Section 3.02 of the
Servicing Agreement that are allocable to the Mortgage Loans, as well as the
agent and bailee of the Indenture Trustee in holding any Related Documents
released to the Servicer pursuant to Section 3.06(c) of the Servicing Agreement,
and any other items constituting a part of the Trust Estate which from time to
time come into the possession of the Servicer. It is intended that, by the
Servicer's acceptance of such agency pursuant to Section 3.02 of the Servicing
Agreement, the Indenture Trustee, as a pledgee of the Mortgage Loans, will be
deemed to have possession of such Related Documents, such monies and such other
items for purposes of Section 9-313 or 9-314 of the UCC of the state in which
such property is held by the Servicer.
Section 3.15 Investment Company Act. The Issuer shall not become an "investment
company" or under the "control" of an "investment company" as such terms are
defined in the Investment Company Act of 1940, as amended (or any successor or
amendatory statute), and the rules and regulations thereunder (taking into
account not only the general definition of the term "investment company" but
also any available exceptions to such general definition); provided, however,
that the Issuer shall be in compliance with this Section 3.15 if it shall have
obtained an order exempting it from regulation as an "investment company" so
long as it is in compliance with the conditions imposed in such order.
Section 3.16 Issuer May Consolidate, etc.
(a) The Issuer shall not consolidate or merge with or into any other Person,
unless:
(i) the Person (if other than the Issuer) formed by or surviving such
consolidation or merger shall be a Person organized and existing under the
laws of the United States of America or any state or the District of
Columbia and shall expressly assume, by an indenture supplemental hereto,
executed and delivered to the Indenture Trustee, in form reasonably
satisfactory to the Indenture Trustee, the due and punctual payment of the
principal of and interest on all Notes and to the Certificate Paying Agent,
on behalf of the Certificateholders and the performance or observance of
every agreement and covenant of this Indenture on the part of the Issuer to
be performed or observed, all as provided herein;
(ii) immediately after giving effect to such transaction, no Event of Default
shall have occurred and be continuing;
(iii) the Enhancer shall have consented thereto and each Rating Agency shall
have notified the Issuer that such transaction will not cause a Rating
Event, without taking into account the Policy;
(iv) the Issuer shall have received an Opinion of Counsel (and shall have
delivered copies thereof to the Indenture Trustee and the Enhancer) to
the effect that such transaction will not have any material adverse tax
consequence to the Issuer, any Noteholder, the Enhancer or any
Certificateholder;
(v) any action that is necessary to maintain the lien and security interest
created by this Indenture shall have been taken; and
(vi) the Issuer shall have delivered to the Indenture Trustee an Officer's
Certificate and an Opinion of Counsel each stating that such
consolidation or merger and such supplemental indenture comply with this
Article III and that all conditions precedent herein provided for
relating to such transaction have been complied with (including any
filing required by the Exchange Act).
(b) The Issuer shall not convey or transfer any of its properties or assets,
including those included in the Trust Estate, to any Person, unless:
(i) the Person that acquires by conveyance or transfer the properties and
assets of the Issuer the conveyance or transfer of which is hereby
restricted shall (A) be a United States citizen or a Person organized and
existing under the laws of the United States of America or any state, (B)
expressly assumes, by an indenture supplemental hereto, executed and
delivered to the Indenture Trustee, in form satisfactory to the Indenture
Trustee, the due and punctual payment of the principal of and interest on
all Notes and the performance or observance of every agreement and covenant
of this Indenture on the part of the Issuer to be performed or observed,
all as provided herein, (C) expressly agrees by means of such supplemental
indenture that all right, title and interest so conveyed or transferred
shall be subject and subordinate to the rights of Noteholders of the Notes,
(D) unless otherwise provided in such supplemental indenture, expressly
agrees to indemnify, defend and hold harmless the Issuer against and from
any loss, liability or expense arising under or related to this Indenture
and the Notes and (E) expressly agrees by means of such supplemental
indenture that such Person (or if a group of Persons, then one specified
Person) shall make all filings with the Commission (and any other
appropriate Person) required by the Exchange Act in connection with the
Notes;
(ii) immediately after giving effect to such transaction, no Default or Event
of Default shall have occurred and be continuing;
(iii) the Enhancer shall have consented thereto, and each Rating Agency shall
have notified the Issuer that such transaction will not cause a Rating
Event, if determined without regard to the Policy;
(iv) the Issuer shall have received an Opinion of Counsel (and shall have
delivered copies thereof to the Indenture Trustee) to the effect that
such transaction will not have any material adverse tax consequence to
the Issuer or any Noteholder;
(v) any action that is necessary to maintain the lien and security interest
created by this Indenture shall have been taken; and
(vi) the Issuer shall have delivered to the Indenture Trustee an Officer's
Certificate and an Opinion of Counsel each stating that such conveyance
or transfer and such supplemental indenture comply with this Article III
and that all conditions precedent herein provided for relating to such
transaction have been complied with (including any filing required by
the Exchange Act).
Section 3.17 Successor or Transferee.
(a) Upon any consolidation or merger of the Issuer in accordance with Section
3.16(a), the Person formed by or surviving such consolidation or merger (if
other than the Issuer) shall succeed to, and be substituted for, and may
exercise every right and power of, the Issuer under this Indenture with the same
effect as if such Person had been named as the Issuer herein.
(b) Upon a conveyance or transfer of all the assets and properties of the Issuer
pursuant to Section 3.16(b), the Issuer shall be released from every covenant
and agreement of this Indenture to be observed or performed on the part of the
Issuer with respect to the Notes immediately upon the delivery of written notice
to the Indenture Trustee of such conveyance or transfer.
Section 3.18 No Other Business. The Issuer shall not engage in any business
other than financing, purchasing, owning and selling and managing the Mortgage
Loans and the issuance of the Notes and Certificates in the manner contemplated
by this Indenture and the Basic Documents and all activities incidental thereto.
Section 3.19 No Borrowing. The Issuer shall not issue, incur, assume, guarantee
or otherwise become liable, directly or indirectly, for any indebtedness except
for the Notes.
Section 3.20 Guarantees, Loans, Advances and Other Liabilities. Except as
contemplated by this Indenture or the other Basic Documents, the Issuer shall
not make any loan or advance or credit to, or guarantee (directly or indirectly
or by an instrument having the effect of assuring another's payment or
performance on any obligation or capability of so doing or otherwise), endorse
or otherwise become contingently liable, directly or indirectly, in connection
with the obligations, stocks or dividends of, or own, purchase, repurchase or
acquire (or agree contingently to do so) any stock, obligations, assets or
securities of, or any other interest in, or make any capital contribution to,
any other Person.
Section 3.21 Capital Expenditures. The Issuer shall not make any expenditure (by
long-term or operating lease or otherwise) for capital assets (either realty or
personalty).
Section 3.22 Owner Trustee Not Liable for Certificates or Related Documents. The
recitals contained herein shall be taken as the statements of the Issuer, and
the Owner Trustee and the Indenture Trustee assume no responsibility for the
correctness of the recitals contained herein. The Owner Trustee and the
Indenture Trustee make no representations as to the validity or sufficiency of
this Indenture or any other Basic Document, of the Certificates (other than the
signatures of the Owner Trustee or the Indenture Trustee on the Certificates) or
the Notes, or of any Related Documents. The Owner Trustee and the Indenture
Trustee shall at no time have any responsibility or liability with respect to
the sufficiency of the Trust Estate or its ability to generate the payments to
be distributed to Certificateholders under the Trust Agreement or the
Noteholders under this Indenture, including, the compliance by the Depositor or
the Sellers with any warranty or representation made under any Basic Document or
in any related document or the accuracy of any such warranty or representation,
or any action of the Certificate Paying Agent, the Certificate Registrar or any
other person taken in the name of the Owner Trustee or the Indenture Trustee.
Section 3.23 Restricted Payments. The Issuer shall not, directly or indirectly,
(i) pay any dividend or make any distribution (by reduction of capital or
otherwise), whether in cash, property, securities or a combination thereof, to
the Owner Trustee or any owner of a beneficial interest in the Issuer or
otherwise with respect to any ownership or equity interest or security in or of
the Issuer, (ii) redeem, purchase, retire or otherwise acquire for value any
such ownership or equity interest or security or (iii) set aside or otherwise
segregate any amounts for any such purpose; provided, however, that the Issuer
may make, or cause to be made, (x) distributions to the Owner Trustee and the
Certificateholders as contemplated by, and to the extent funds are available for
such purpose under, the Trust Agreement and (y) payments to the Servicer
pursuant to the terms of the Servicing Agreement. The Issuer will not, directly
or indirectly, make payments to or distributions from the Custodial Account
except in accordance with this Indenture and the other Basic Documents.
Section 3.24 Notice of Events of Default. The Issuer shall give the Indenture
Trustee, the Enhancer and the Rating Agencies prompt written notice of each
Event of Default hereunder and under the Trust Agreement.
Section 3.25 Further Instruments and Acts. Upon request of the Indenture
Trustee, the Issuer shall execute and deliver such further instruments and do
such further acts as may be reasonably necessary or proper to carry out more
effectively the purposes of this Indenture.
Section 3.26 Statements to Noteholders. On each Payment Date, each of the
Indenture Trustee and the Certificate Registrar shall make available to the
Enhancer, the Depositor, the Owner Trustee, each Rating Agency, each Noteholder
and each Certificateholder, the Servicing Certificates provided to the Indenture
Trustee by the Servicer relating to such Payment Date and delivered pursuant to
Section 4.01 of the Servicing Agreement.
The Indenture Trustee will make the Servicing Certificate (and, at its
option, any additional files containing the same information in an alternative
format) available each month to Securityholders and the Enhancer and other
parties to this Indenture via the Indenture Trustee's internet website. The
Indenture Trustee's internet website shall initially be located at
"xxx.xxxxxxx.xxx." Assistance in using the website can be obtained by calling
the Indenture Trustee's customer service desk at (000) 000-0000. Parties that
are unable to use the above distribution options are entitled to have a paper
copy mailed to them via first class mail by calling the customer service desk
and indicating such. The Indenture Trustee shall have the right to change the
way the statement to Securityholders are distributed in order to make such
distribution more convenient and/or more accessible to the above parties and the
Indenture Trustee shall provide timely and adequate notification to all above
parties regarding any such changes.
Section 3.27 Determination of Note Rate. The Indenture Trustee shall determine
One-Month LIBOR and the applicable Note Rate for each Class of the Class A-1
Notes for each Interest Period as of the second LIBOR Business Day immediately
preceding (i) the Closing Date in the case of the first Interest Period for the
Notes and (ii) the first day of each succeeding Interest Period for the Notes,
and shall inform the Issuer, the Servicer and the Depositor by means of the
Indenture Trustee's online service.
Section 3.28 Additional Representations of the Issuer.
The Issuer hereby represents and warrants to the Indenture Trustee that
as of the Closing Date (which representations and warranties shall survive the
execution of this Indenture):
(a) This Indenture creates a valid and continuing security interest (as defined
in the applicable UCC) in the Mortgage Notes in favor of the Indenture Trustee,
which security interest is prior to all other Liens (except as expressly
permitted otherwise in this Indenture), and is enforceable as such as against
creditors of and purchasers from the Issuer.
(b) The Mortgage Notes constitute "instruments" within the meaning of the
applicable UCC.
(c) The Issuer owns and has good and marketable title to the Mortgage Notes free
and clear of any Lien of any Person.
(d) The original executed copy of each Mortgage Note (except for any Mortgage
Note with respect to which a Lost Note Affidavit has been delivered to the
Custodian) has been delivered to the Custodian.
(e) The Issuer has received a written acknowledgment from the Custodian that the
Custodian is acting solely as agent of the Indenture Trustee for the benefit of
the Noteholders.
(f) Other than the security interest granted to the Indenture Trustee pursuant
to this Indenture, the Issuer has not pledged, assigned, sold, granted a
security interest in, or otherwise conveyed any of the Mortgage Notes. The
Issuer has not authorized the filing of and is not aware of any financing
statements against the Issuer that include a description of collateral covering
the Mortgage Notes other than any financing statement relating to the security
interest granted to the Indenture Trustee hereunder or any security interest
that has been terminated. The Issuer is not aware of any judgment or tax lien
filings against the Issuer.
(g) None of the Mortgage Notes has any marks or notations indicating that they
have been pledged, assigned or otherwise conveyed to any Person other than the
Indenture Trustee, except for (i) any endorsements that are part of a complete
chain of endorsements from the originator of the Mortgage Note to the Indenture
Trustee, and (ii) any marks or notations pertaining to Liens that have been
terminated or released.
(h) None of the provisions of this Section 3.28 shall be waived without the
prior written confirmation from Standard & Poor's that such waiver shall not
result in a reduction or withdrawal of the then-current rating of any Class of
Notes.
Section 3.29 Payments under the Policy.
(a) If the Servicing Certificate specifies an Insured Amount for any Payment
Date, the Indenture Trustee shall make a draw on the Policy in an amount, if
any, equal to the Insured Amount for such Payment Date. The Indenture Trustee
shall deposit or cause to be deposited such Insured Amount into the Note Payment
Account on such Payment Date. For purposes of the foregoing, the amount on
deposit in the Note Payment Account (after taking into account amounts withdrawn
from the Capitalized Interest Account) and available to be distributed as
interest on any Payment Date shall include all amounts on deposit in such
account with respect to such Payment Date, other than the Principal Collection
Distribution Amount and the Liquidation Loss Distribution Amount (if any) to be
distributed on such Payment Date.
(b) The Indenture Trustee shall submit, if an Insured Amount is specified in any
statement to Securityholders prepared pursuant to Section 4.01 of the Servicing
Agreement, the Notice of Nonpayment and Demand for Payment of Insured Amounts
(in the form attached as Exhibit A to the Policy) to the Enhancer no later than
12:00 noon, New York City time, on the second (2nd) Business Day prior to the
applicable Payment Date.
Section 3.30 Replacement Enhancement. The Issuer (or the Servicer on its behalf)
may, at its expense, in accordance with and upon satisfaction of the conditions
set forth herein, but shall not be required to, obtain a surety bond, letter of
credit, guaranty or reserve account as a Permitted Investment for amounts on
deposit in the Capitalized Interest Account, or may arrange for any other form
of additional credit enhancement; provided, that after prior notice thereto, no
Rating Agency shall have informed the Issuer that a Rating Event would occur as
a result thereof (without taking the Policy into account); and provided further,
that the issuer of any such instrument or facility and the timing and mechanism
for drawing on such additional enhancement shall be acceptable to the Indenture
Trustee and the Enhancer. It shall be a condition to procurement of any such
additional credit enhancement that there be delivered to the Indenture Trustee
and the Enhancer (a) an Opinion of Counsel, acceptable in form to the Indenture
Trustee and the Enhancer, from counsel to the provider of such additional credit
enhancement with respect to the enforceability thereof and such other matters as
the Indenture Trustee or the Enhancer may require and (b) an Opinion of Counsel
to the effect that the procurement of such additional enhancement would not (i)
adversely affect in any material respect the tax status of the Notes or the
Certificates or (ii) cause the Issuer to be taxable as an association (or a
publicly traded partnership) for federal income tax purposes or to be classified
as a taxable mortgage pool within the meaning of Section 7701(i) of the Code.
ARTICLE IV
The Notes; Satisfaction and Discharge of Indenture
Section 4.01 The Notes. The Notes shall be registered in the name of a nominee
designated by the Depository. Beneficial Owners will hold interests in the Notes
through the book-entry facilities of the Depository in minimum initial Note
Balances of $25,000 and integral multiples of $1,000 in excess thereof and with
respect to the Class A-IO Notes, a Notional Amount equal to $2,000,000 and in
integral multiples of $1,000,000 in excess thereof.
The Indenture Trustee may for all purposes (including the making of
payments due on the Notes) deal with the Depository as the authorized
representative of the Beneficial Owners with respect to the Notes for the
purposes of exercising the rights of Noteholders hereunder. Except as provided
in the next succeeding paragraph of this Section 4.01, the rights of Beneficial
Owners with respect to the Notes shall be limited to those established by law
and agreements between such Beneficial Owners and the Depository and Depository
Participants. Except as provided in Section 4.08, Beneficial Owners shall not be
entitled to definitive certificates for the Notes as to which they are the
Beneficial Owners. Requests and directions from, and votes of, the Depository as
Noteholder of the Notes shall not be deemed inconsistent if they are made with
respect to different Beneficial Owners. The Indenture Trustee may establish a
reasonable record date in connection with solicitations of consents from or
voting by Noteholders and give notice to the Depository of such record date.
Without the consent of the Issuer and the Indenture Trustee, no Note may be
transferred by the Depository except to a successor Depository that agrees to
hold such Note for the account of the Beneficial Owners.
In the event the Depository Trust Company resigns or is removed as
Depository, the Indenture Trustee, at the request of the Servicer and with the
approval of the Issuer, may appoint a successor Depository. If no successor
Depository has been appointed within 30 days of the effective date of the
Depository's resignation or removal, each Beneficial Owner shall be entitled to
certificates representing the Notes it beneficially owns in the manner
prescribed in Section 4.08.
The Notes shall, on original issue, be executed on behalf of the Issuer
by the Owner Trustee, not in its individual capacity but solely as Owner Trustee
and upon Issuer Order, authenticated by the Note Registrar and delivered by the
Indenture Trustee to or upon the order of the Issuer.
Section 4.02 Registration of and Limitations on Transfer and Exchange of Notes;
Appointment of Certificate Registrar. The Issuer shall cause to be kept at the
Indenture Trustee's Corporate Trust Office a Note Register in which, subject to
such reasonable regulations as it may prescribe, the Note Registrar shall
provide for the registration of Notes and of transfers and exchanges of Notes as
herein provided. The Issuer hereby appoints the Indenture Trustee as the initial
Note Registrar.
Subject to the restrictions and limitations set forth below, upon
surrender for registration of transfer of any Note at the Corporate Trust
Office, the Issuer shall execute, and the Note Registrar shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more
new Notes in authorized initial Note Balances evidencing the same aggregate
Percentage Interests.
Subject to the foregoing, at the option of the Noteholders, Notes may be
exchanged for other Notes of like tenor, in each case in authorized initial Note
Balances evidencing the same aggregate Percentage Interests, upon surrender of
the Notes to be exchanged at the Corporate Trust Office of the Note Registrar.
Whenever any Notes are so surrendered for exchange, the Issuer shall execute and
the Note Registrar shall authenticate and deliver the Notes which the Noteholder
making the exchange is entitled to receive. Each Note presented or surrendered
for registration of transfer or exchange shall (if so required by the Note
Registrar) be duly endorsed by, or be accompanied by a written instrument of
transfer in form reasonably satisfactory to the Note Registrar duly executed by,
the Noteholder thereof or his attorney duly authorized in writing with such
signature guaranteed by a commercial bank or trust company located or having a
correspondent located in The City of New York. Notes delivered upon any such
transfer or exchange will evidence the same obligations, and will be entitled to
the same rights and privileges, as the Notes surrendered.
No service charge shall be imposed for any registration of transfer or
exchange of Notes, but the Note Registrar shall require payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any registration of transfer or exchange of Notes.
All Notes surrendered for registration of transfer and exchange shall be
cancelled by the Note Registrar and delivered to the Indenture Trustee for
subsequent destruction without liability on the part of either.
The Issuer hereby appoints the Indenture Trustee as Certificate
Registrar to keep at its Corporate Trust Office a Certificate Register pursuant
to Section 3.09 of the Trust Agreement in which, subject to such reasonable
regulations as it may prescribe, the Certificate Registrar shall provide for the
registration of Certificates and of transfers and exchanges thereof pursuant to
Section 3.05 of the Trust Agreement. The Indenture Trustee hereby accepts such
appointment.
Each purchaser of a Note, by its acceptance of the Note, shall be deemed
to have represented that the acquisition and holding of such Note by the
purchaser does not constitute or give rise to a prohibited transaction under
Section 406 of ERISA or Section 4975 of the Code, for which no statutory,
regulatory or administrative exemption is available.
Section 4.03 Mutilated, Destroyed, Lost or Stolen Notes. If (i) any mutilated
Note is surrendered to the Indenture Trustee, or the Indenture Trustee receives
evidence to its satisfaction of the destruction, loss or theft of any Note, and
(ii) there is delivered to the Indenture Trustee such security or indemnity as
may be required by it to hold the Issuer and the Indenture Trustee harmless,
then, in the absence of notice to the Issuer, the Note Registrar or the
Indenture Trustee that such Note has been acquired by a bona fide purchaser, and
provided that the requirements of Section 8-405 of the UCC are met, the Issuer
shall execute, and upon its request the Indenture Trustee shall authenticate and
deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or
stolen Note, a replacement Note of the same class; provided, however, that if
any such destroyed, lost or stolen Note, but not a mutilated Note, shall have
become or within seven days shall be due and payable, instead of issuing a
replacement Note, the Issuer may pay such destroyed, lost or stolen Note when so
due or payable without surrender thereof. If, after the delivery of such
replacement Note or payment of a destroyed, lost or stolen Note pursuant to the
proviso to the preceding sentence, a bona fide purchaser of the original Note in
lieu of which such replacement Note was issued presents for payment such
original Note, the Issuer and the Indenture Trustee shall be entitled to recover
such replacement Note (or such payment) from the Person to whom it was delivered
or any Person taking such replacement Note from such Person to whom such
replacement Note was delivered or any assignee of such Person, except a bona
fide purchaser, and shall be entitled to recover upon the security or indemnity
provided therefor to the extent of any loss, damage, cost or expense incurred by
the Issuer or the Indenture Trustee in connection therewith.
Upon the issuance of any replacement Note under this Section 4.03, the
Issuer may require the payment by the Noteholder of such Note of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other reasonable expenses (including the fees and
expenses of the Indenture Trustee) connected therewith.
Every replacement Note issued pursuant to this Section 4.03 in
replacement of any mutilated, destroyed, lost or stolen Note shall constitute an
original additional contractual obligation of the Issuer, whether or not the
mutilated, destroyed, lost or stolen Note shall be at any time enforceable by
anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes duly issued hereunder.
The provisions of this Section 4.03 are exclusive and shall preclude (to
the extent lawful) all other rights and remedies with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Notes.
Section 4.04 Persons Deemed Owners. Prior to due presentment for registration of
transfer of any Note, the Issuer, the Indenture Trustee and any agent of the
Issuer or the Indenture Trustee may treat the Person in whose name any Note is
registered (as of the day of determination) as the owner of such Note for the
purpose of receiving payments of principal of and interest, if any, on such Note
and for all other purposes whatsoever, whether or not such Note be overdue, and
none of the Issuer, the Indenture Trustee or any agent of the Issuer or the
Indenture Trustee shall be affected by notice to the contrary.
Section 4.05 Cancellation. All Notes surrendered for payment, registration of
transfer, exchange or redemption shall, if surrendered to any Person other than
the Indenture Trustee, be delivered to the Indenture Trustee and shall be
promptly cancelled by the Indenture Trustee. The Issuer may at any time deliver
to the Indenture Trustee for cancellation any Notes previously authenticated and
delivered hereunder which the Issuer may have acquired in any manner whatsoever,
and all Notes so delivered shall be promptly cancelled by the Indenture Trustee.
No Notes shall be authenticated in lieu of or in exchange for any Notes
cancelled as provided in this Section 4.05, except as expressly permitted by
this Indenture. All cancelled Notes may be held or disposed of by the Indenture
Trustee in accordance with its standard retention or disposal policy as in
effect at the time unless the Issuer shall direct by an Issuer Request that they
be destroyed or returned to it; provided, however, that such Issuer Request is
timely and the Notes have not been previously disposed of by the Indenture
Trustee.
Section 4.06 Book-Entry Notes. Each Class of Notes, upon original issuance,
shall be issued in the form of typewritten Notes representing the Book-Entry
Notes, to be delivered to The Depository Trust Company, the initial Depository,
by, or on behalf of, the Issuer. Such Notes shall initially be registered on the
Note Register in the name of Cede & Co., the nominee of the initial Depository,
and no Beneficial Owner shall receive a Definitive Note representing such
Beneficial Owner's interest in such Note, except as provided in Section 4.08.
Unless and until definitive, fully registered Notes (the "Definitive Notes")
have been issued to Beneficial Owners pursuant to Section 4.08:
(a) the provisions of this Section 4.06 shall be in full force and effect;
(b) the Note Registrar and the Indenture Trustee shall be entitled to deal with
the Depository for all purposes of this Indenture (including the payment of
principal of and interest on the Notes and the giving of instructions or
directions hereunder) as the sole holder of the Notes, and shall have no
obligation to the Beneficial Owners;
(c) to the extent that the provisions of this Section 4.06 conflict with any
other provisions of this Indenture, the provisions of this Section 4.06 shall
control;
(d) the rights of Beneficial Owners shall be exercised only through the
Depository and shall be limited to those established by law and agreements
between such Owners of Notes and the Depository and/or the Depository
Participants. Unless and until Definitive Notes are issued pursuant to Section
4.08, the initial Depository will make book-entry transfers among the Depository
Participants and receive and transmit payments of principal of and interest on
the Notes to such Depository Participants; and
(e) whenever this Indenture requires or permits actions to be taken based upon
instructions or directions of Noteholders of Notes evidencing a specified
percentage of the Note Balances of the Notes, the Depository shall be deemed to
represent such percentage only to the extent that it has received instructions
to such effect from Beneficial Owners and/or Depository Participants owning or
representing, respectively, such required percentage of the beneficial interest
in the Notes and has delivered such instructions to the Indenture Trustee.
Section 4.07 Notices to Depository. Whenever a notice or other communication to
the Noteholders of the Notes is required under this Indenture, unless and until
Definitive Notes shall have been issued to Beneficial Owners pursuant to Section
4.08, the Indenture Trustee shall give all such notices and communications
specified herein to be given to Noteholders of the Notes to the Depository, and
shall have no obligation to the Beneficial Owners.
Section 4.08 Definitive Notes. If (i) the Indenture Trustee determines that the
Depository is no longer willing or able to properly discharge its
responsibilities with respect to the Notes and, if requested by the Servicer,
the Indenture Trustee is unable to locate a qualified successor, (ii) the
Indenture Trustee elects to terminate the book-entry system through the
Depository, or (iii) after the occurrence of an Event of Default, Beneficial
Owners of Notes representing beneficial interests aggregating at least a
majority of the aggregate Note Balance of the Notes advise the Depository in
writing that the continuation of a book-entry system through the Depository is
no longer in the best interests of the Beneficial Owners, then the Depository
shall notify all Beneficial Owners and the Indenture Trustee of the occurrence
of any such event and of the availability of Definitive Notes to Beneficial
Owners requesting the same. Upon surrender to the Indenture Trustee of the
typewritten Notes representing the Book-Entry Notes by the Depository (or
Percentage Interest of the Book-Entry Notes being transferred pursuant to clause
(iii) above), accompanied by registration instructions, the Issuer shall execute
and the Indenture Trustee shall authenticate the Definitive Notes in accordance
with the instructions of the Depository. None of the Issuer, the Note Registrar
or the Indenture Trustee shall be liable for any delay in delivery of such
instructions, and each may conclusively rely on, and shall be protected in
relying on, such instructions. Upon the issuance of Definitive Notes, the
Indenture Trustee shall recognize the Noteholders of the Definitive Notes as
Noteholders.
Section 4.09 Tax Treatment. The Issuer has entered into this Indenture, and the
Notes will be issued, with the intention that, for federal, state and local
income, single business and franchise tax purposes, the Notes (exclusive of any
payment of Interest Carry Forward Amounts to the holders of the Class A-IO
Notes) will qualify as (i) regular interests in a REMIC as defined in the Code,
which will be treated as indebtedness for purposes of such taxes and (ii) the
right to receive payments from outside the REMIC. The Issuer, by entering into
this Indenture, and each Noteholder, by its acceptance of its Note (and each
Beneficial Owner by its acceptance of an interest in the applicable Book-Entry
Note), agree to treat the Notes (exclusive of any payment of Interest Carry
Forward Amounts to the holders of the Class A-IO Notes) for federal, state and
local income, single business and franchise tax purposes as (i) regular
interests in a REMIC as defined in the Code, which will be treated as
indebtedness for purposes of such taxes and (ii) the right to receive payments
from outside the REMIC.
Section 4.10 Satisfaction and Discharge of Indenture. This Indenture shall cease
to be of further effect with respect to the Notes except as to (i) rights of
registration of transfer and exchange, (ii) substitution of mutilated,
destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive payments
of principal thereof and interest thereon, (iv) Sections 3.03, 3.04, 3.06, 3.09,
3.16, 3.18 and 3.19, (v) the rights, obligations and immunities of the Indenture
Trustee hereunder (including the rights of the Indenture Trustee under Section
6.07 and the obligations of the Indenture Trustee under Section 4.11) and (vi)
the rights of Noteholders as beneficiaries hereof with respect to the property
so deposited with the Indenture Trustee payable to all or any of them, and the
Indenture Trustee, on written demand of and at the expense of the Issuer, shall
execute proper instruments acknowledging satisfaction and discharge of this
Indenture with respect to the Notes, when
(A) either
(1) all Notes theretofore authenticated and delivered (other than (i) Notes
that have been destroyed, lost or stolen and that have been replaced or
paid as provided in Section 4.03 and (ii) Notes for whose payment money has
theretofore been deposited in trust or segregated and held in trust by the
Issuer and thereafter repaid to the Issuer or discharged from such trust,
as provided in Section 3.03) have been delivered to the Indenture Trustee
for cancellation; or
(2) all Notes not theretofore delivered to the Indenture Trustee for
cancellation
a) have become due and payable,
b) will become due and payable at the Final Payment Date within one year, or
c) have been declared immediately due and payable pursuant to Section 5.02.
and the Issuer, in the case of a. or b. above, has irrevocably deposited
or caused to be irrevocably deposited with the Indenture Trustee cash or
direct obligations of or obligations guaranteed by the United States of
America (which will mature prior to the date such amounts are payable),
in trust for such purpose, in an amount sufficient to pay and discharge
the entire indebtedness on such Notes and Certificates then outstanding
not theretofore delivered to the Indenture Trustee for cancellation when
due on the Final Payment Date;
(B) the Issuer has paid or caused to be paid all other
sums payable hereunder and under the Insurance Agreement by the
Issuer; and
(C) the Issuer has delivered to the Indenture Trustee and
the Enhancer an Officer's Certificate and an Opinion of Counsel,
each meeting the applicable requirements of Section 10.01 and
each stating that all conditions precedent herein provided for
relating to the satisfaction and discharge of this Indenture have
been complied with and, if the Opinion of Counsel relates to a
deposit made in connection with Section 4.10(A)(2)b. above, such
opinion shall further be to the effect that such deposit will not
have any material adverse tax consequences to the Issuer, any
Noteholders or any Certificateholders.
Section 4.11 Application of Trust Money. All monies deposited with the Indenture
Trustee pursuant to Section 4.10 hereof shall be held in trust and applied by
it, in accordance with the provisions of the Notes and this Indenture, to the
payment, either directly or through any Paying Agent or Certificate Paying
Agent, as the Indenture Trustee may determine, to the Securityholders of
Securities, of all sums due and to become due thereon for principal and
interest; but such monies need not be segregated from other funds except to the
extent required herein or required by law.
Section 4.12 Subrogation and Cooperation
(a) The Issuer and the Indenture Trustee acknowledge that (i) to the extent
the Enhancer makes payments under the Policy on account of principal of
or interest on the Mortgage Loans, the Enhancer will be fully subrogated
to the rights the Noteholders to receive such principal of and interest
on the Mortgage Loans, and (ii) the Enhancer shall be paid such
principal and interest only from the sources and in the manner provided
herein and in the Insurance Agreement for the payment of such principal
and interest.
(b) The Indenture Trustee shall cooperate in all respects with any
reasonable request by the Enhancer for action to preserve or enforce the
Enhancer's rights or interest under this Indenture or the Insurance
Agreement, consistent with this Indenture and without limiting the
rights of the Noteholders as otherwise set forth in the Indenture,
including upon the occurrence and continuance of a default under the
Insurance Agreement, a request (which request shall be in writing) to
take any one or more of the following actions:
(i) institute Proceedings for the collection of all amounts then payable on
the Notes or under this Indenture in respect to the Notes and all
amounts payable under the Insurance Agreement and to enforce any
judgment obtained and collect from the Issuer monies adjudged due;
(ii) sell the Trust Estate or any portion thereof or rights or interest
therein, at one or more public or private Sales (as defined in Section
5.15 hereof) called and conducted in any manner permitted by law;
(iii) cause the Issuer to file or record all assignments that have not
previously been recorded;
(iv) institute Proceedings from time to time for the complete or partial
foreclosure of this Indenture; and
(v) exercise any remedies of a secured party under the UCC and take any
other appropriate action to protect and enforce the rights and remedies
of the Enhancer hereunder.
Following the payment in full of the Notes, the Enhancer shall continue to have
all rights and privileges provided to it under this Section and in all other
provisions of this Indenture, until all amounts owing to the Enhancer have been
paid in full.
Section 4.13 Repayment of Monies Held by Paying Agent. In connection with the
satisfaction and discharge of this Indenture with respect to the Notes, all
monies then held by any Paying Agent (other than the Indenture Trustee) under
the provisions of this Indenture with respect to such Notes shall, upon written
demand of the Issuer, be paid to the Indenture Trustee to be held and applied
according to Section 3.05; and thereupon, such Paying Agent shall be released
from all further liability with respect to such monies.
Section 4.14 Temporary Notes. Pending the preparation of any Definitive Notes,
the Issuer may execute and upon its written direction, the Indenture Trustee may
authenticate and make available for delivery, temporary Notes that are printed,
lithographed, typewritten, photocopied or otherwise produced, in any
denomination, substantially of the tenor of the Definitive Notes in lieu of
which they are issued and with such appropriate insertions, omissions,
substitutions and other variations as the officers executing such Notes may
determine, as evidenced by their execution of such Notes.
If temporary Notes are issued, the Issuer will cause Definitive Notes to
be prepared without unreasonable delay. After the preparation of the Definitive
Notes, the temporary Notes shall be exchangeable for Definitive Notes upon
surrender of the temporary Notes at the office or agency of the Indenture
Trustee, without charge to the Noteholder. Upon surrender for cancellation of
any one or more temporary Notes, the Issuer shall execute and the Indenture
Trustee shall authenticate and make available for delivery, in exchange
therefor, Definitive Notes of authorized denominations and of like tenor and
aggregate principal amount. Until so exchanged, such temporary Notes shall in
all respects be entitled to the same benefits under this Indenture as Definitive
Notes.
ARTICLE V
Default And Remedies
Section 5.01 Events of Default. The Issuer shall deliver to the Indenture
Trustee and the Enhancer, within five days after learning of the occurrence of
any event that with the giving of notice and the lapse of time would become an
Event of Default under clause (c) of the definition of "Event of Default"
written notice in the form of an Officer's Certificate of its status and what
action the Issuer is taking or proposes to take with respect thereto. Section
5.02 Acceleration of Maturity; Rescission and Annulment. If an Event of Default
shall occur and be continuing, then and in every such case the Indenture
Trustee, acting at the written direction of the Enhancer or the Noteholders of
Notes representing not less than a majority of the aggregate Note Balance of the
Notes, with the written consent of the Enhancer (unless an Enhancer Default has
occurred and is continuing), may declare the Notes to be immediately due and
payable by a notice in writing to the Issuer (and to the Indenture Trustee if
given by Noteholders); and upon any such declaration, the unpaid principal
amount of the Notes, together with accrued and unpaid interest thereon through
the date of acceleration, shall become immediately due and payable.
At any time after such declaration of acceleration of maturity with
respect to an Event of Default has been made and before a judgment or decree for
payment of the money due has been obtained by the Indenture Trustee as
hereinafter provided in this Article V, the Enhancer or the Noteholders of Notes
representing a majority of the aggregate Note Balance of the Notes, with the
written consent of the Enhancer, by written notice to the Issuer and the
Indenture Trustee, may in writing waive the related Event of Default and rescind
and annul such declaration and its consequences if:
(a) the Issuer has paid or deposited with the Indenture Trustee a sum
sufficient to pay:
(i) all payments of principal of and interest on the Notes and all other
amounts that would then be due hereunder or upon the Notes if the Event
of Default giving rise to such acceleration had not occurred;
(ii) all sums paid or advanced by the Indenture Trustee hereunder and the
reasonable compensation, expenses, disbursements and advances of the
Indenture Trustee and its agents and counsel; and
(iii) all Events of Default, other than the nonpayment of the principal of the
Notes that has become due solely by such acceleration, have been cured
or waived as provided in Section 5.12.
No such rescission shall affect any subsequent default or impair any
right consequent thereto.
Section 5.03 Collection of Indebtedness and Suits for Enforcement by Indenture
Trustee.
(a) The Issuer covenants that if default in the payment of (i) any interest
on any Note when the same becomes due and payable, and such default
continues for a period of five days, or (ii) the principal of or any
installment of the principal of any Note when the same becomes due and
payable, the Issuer shall, upon demand of the Indenture Trustee, pay to
it, for the benefit of the Noteholders, the entire amount then due and
payable on the Notes for principal and interest, with interest on the
overdue principal, and in addition thereto such further amount as shall
be sufficient to cover the costs and expenses of collection, including
the reasonable compensation, expenses, disbursements and advances of the
Indenture Trustee and its agents and counsel.
(b) In case the Issuer shall fail forthwith to pay such amounts upon such
demand, the Indenture Trustee, in its own name and as trustee of an
express trust, subject to the provisions of Section 10.17 hereof, may
institute a Proceeding for the collection of the sums so due and unpaid,
and may prosecute such Proceeding to judgment or final decree, and may
enforce the same against the Issuer or other obligor on the Notes and
collect in the manner provided by law out of the property of the Issuer
or other obligor on the Notes, wherever situated, the monies adjudged or
decreed to be payable.
(c) If an Event of Default shall occur and be continuing, the Indenture
Trustee, subject to the provisions of Section 10.17 hereof, may, as more
particularly provided in Section 5.04, in its discretion proceed to
protect and enforce its rights and the rights of the Noteholders by such
appropriate Proceedings as the Indenture Trustee shall deem most
effective to protect and enforce any such rights, whether for the
specific enforcement of any covenant or agreement in this Indenture or
in aid of the exercise of any power granted herein, or to enforce any
other proper remedy or legal or equitable right vested in the Indenture
Trustee by this Indenture or by law.
(d) If there shall be pending, relative to the Issuer or any other obligor
on the Notes or any Person having or claiming an ownership interest in
the Trust Estate, Proceedings under Title 11 of the United States Code
or any other applicable federal or state bankruptcy, insolvency or other
similar law, or if a receiver, assignee or trustee in bankruptcy or
reorganization, liquidator, sequestrator or similar official shall have
been appointed for or taken possession of the Issuer or its property or
such other obligor or Person, or if there shall be any other comparable
judicial Proceedings relative to the Issuer or other any other obligor
on the Notes, or relative to the creditors or property of the Issuer or
such other obligor, then the Indenture Trustee, irrespective of whether
the principal of any Notes shall then be due and payable as therein
expressed or by declaration or otherwise, and irrespective of whether
the Indenture Trustee shall have made any demand pursuant to the
provisions of this Section, shall be entitled and empowered, by
intervention in such Proceedings or otherwise:
(i) to file and prove a claim or claims for the entire amount of principal and
interest owing and unpaid in respect of the Notes and to file such other
papers or documents as may be necessary or advisable in order to have the
claims of the Indenture Trustee (including any claim for reasonable
compensation to the Indenture Trustee and each predecessor Indenture
Trustee, and their respective agents, attorneys and counsel, and for
reimbursement of all expenses and liabilities incurred, and all advances
made, by the Indenture Trustee and each predecessor Indenture Trustee,
except as a result of negligence, willful misconduct or bad faith) and of
the Noteholders allowed in such Proceedings;
(ii) unless prohibited by applicable law and regulations, to vote on behalf
of the Noteholders in any election of a trustee, a standby trustee or
Person performing similar functions in any such Proceedings;
(iii) to collect and receive any monies or other property payable or
deliverable on any such claims and to distribute all amounts received
with respect to the claims of the Noteholders and of the Indenture
Trustee on their behalf; and
(iv) to file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Indenture
Trustee or the Noteholders allowed in any judicial proceedings relative
to the Issuer, its creditors and its property;
and any trustee, receiver, liquidator, custodian or other similar official in
any such Proceeding is hereby authorized by each of such Noteholders to make
payments to the Indenture Trustee, and, in the event the Indenture Trustee shall
consent to the making of payments directly to such Noteholders, to pay to the
Indenture Trustee such amounts as shall be sufficient to cover reasonable
compensation to the Indenture Trustee, each predecessor Indenture Trustee and
their respective agents, attorneys and counsel, and all other expenses and
liabilities incurred, and all advances made, by the Indenture Trustee and each
predecessor Indenture Trustee, except as a result of negligence, willful
misconduct or bad faith.
(e) Nothing herein contained shall be deemed to authorize the Indenture Trustee
to authorize or consent to or vote for or accept or adopt on behalf of any
Noteholder any plan of reorganization, arrangement, adjustment or composition
affecting the Notes or the rights of any Noteholder thereof or to authorize the
Indenture Trustee to vote in respect of the claim of any Noteholder in any such
proceeding except, as aforesaid, to vote for the election of a trustee in
bankruptcy or similar Person.
(f) All rights of action and of asserting claims under this Indenture, or under
any of the Notes, may be enforced by the Indenture Trustee without the
possession of any of the Notes or the production thereof in any trial or other
Proceedings relative thereto, and any such action or proceedings instituted by
the Indenture Trustee shall be brought in its own name as trustee of an express
trust, and any recovery of judgment, subject to the payment of the expenses,
disbursements and compensation of the Indenture Trustee, each predecessor
Indenture Trustee and their respective agents and attorneys, shall be for the
ratable benefit of the Noteholders.
(g) In any Proceedings to which the Indenture Trustee shall be a party
(including any Proceedings involving the interpretation of any provision of this
Indenture), the Indenture Trustee shall be held to represent all Noteholders,
and it shall not be necessary to make any Noteholder a party to any such
Proceedings.
Section 5.04 Remedies; Priorities.
(a) If an Event of Default shall have occurred and be continuing, then the
Indenture Trustee, subject to the provisions of Section 10.17 hereof,
with the written consent of the Enhancer may, or, at the written
direction of the Enhancer, shall, do one or more of the following, in
each case subject to Section 5.05::
(i) institute Proceedings in its own name and as trustee of an express trust
for the collection of all amounts then payable on the Notes or under
this Indenture with respect thereto, whether by declaration or otherwise
and all amounts payable under the Insurance Agreement, enforce any
judgment obtained, and collect from the Issuer and any other obligor on
the Notes monies adjudged due;
(ii) institute Proceedings from time to time for the complete or partial
foreclosure of this Indenture with respect to the Trust Estate;
(iii) exercise any remedies of a secured party under the UCC and take any
other appropriate action to protect and enforce the rights and remedies
of the Indenture Trustee and the Noteholders; and
(iv) sell the Trust Estate or any portion thereof or rights or interest
therein, at one or more public or private sales called and conducted in
any manner permitted by law;
provided, however, that the Indenture Trustee may not sell or otherwise
liquidate the Trust Estate following an Event of Default, unless (A) the
Indenture Trustee obtains the consent of the Enhancer, which consent will not be
unreasonably withheld, and the Noteholders of 100% of the aggregate Note Balance
of the Notes, (B) the proceeds of such sale or liquidation distributable to
Noteholders are sufficient to discharge in full all amounts then due and unpaid
upon the Notes for principal and interest and to reimburse the Enhancer for any
amounts drawn under the Policy and any other amounts due the Enhancer under the
Insurance Agreement or (C) the Indenture Trustee determines that the Mortgage
Loans will not continue to provide sufficient funds for the payment of principal
of and interest on the Notes as they would have become due if the Notes had not
been declared due and payable, and the Indenture Trustee obtains the consent of
the Enhancer, which consent will not be unreasonably withheld, and the
Noteholders of 66 2/3% of the aggregate Note Balance of the Notes. In
determining such sufficiency or insufficiency with respect to clause (B) and (C)
above, the Indenture Trustee may, but need not, obtain and rely, and shall be
protected in relying in good faith, upon an opinion of an Independent investment
banking or accounting firm of national reputation as to the feasibility of such
proposed action and as to the sufficiency of the Trust Estate for such purpose.
Notwithstanding the foregoing, provided that a Servicing Default shall not have
occurred, any Sale (as defined in Section 5.15 hereof) of the Trust Estate shall
be made subject to the continued servicing of the Mortgage Loans by the Servicer
as provided in the Servicing Agreement. Notwithstanding any sale of the Mortgage
Loans pursuant to this Section 5.04(a), the Indenture Trustee shall, for so long
as any principal or accrued interest on the Notes remains unpaid, continue to
act as Indenture Trustee hereunder and to draw amounts payable under the Policy
in accordance with the terms of the Policy.
(b) If the Indenture Trustee collects any money or property pursuant to this
Article V, it shall pay out such money or property in the following order:
FIRST: to the Indenture Trustee for amounts due under Section
6.07;
SECOND: to the Noteholders of each Class of Notes, pro rata, for
amounts due and unpaid on the related Class for interest,
including accrued and unpaid interest on the Notes for any prior
Payment Date plus interest on such unpaid amounts at the
applicable Note Rate, ratably, without preference or priority of
any kind, according to the amounts due and payable on such Class
for interest from amounts available in the Trust Estate for such
Noteholders, other than amounts in respect of Interest Carry
Forward Amounts;
THIRD: to the Noteholders of each Class of Notes, pro rata, for
amounts due and unpaid on the related Class for principal,
ratably, without preference or priority of any kind, according to
the amounts due and payable on such Class for principal, from
amounts available in the Trust Estate for such Noteholders, until
the respective Note Balances of such Class have been reduced to
zero;
FOURTH: to the payment of all amounts due and owing the Enhancer
under the Insurance Agreement;;
FIFTH: to the Certificate Paying Agent for amounts due under
Article VIII of the Trust Agreement; and
SIXTH: to the payment of the remainder, if any, to the Issuer or
any other person legally entitled thereto.
The Indenture Trustee may fix a record date and payment date for any
payment to Noteholders pursuant to this Section 5.04. At least 15 days before
such record date, the Indenture Trustee shall mail to each Noteholder a notice
that states the record date, the payment date and the amount to be paid.
Section 5.05 Optional Preservation of the Trust Estate. If the Notes have been
declared due and payable under Section 5.02 following an Event of Default and
such declaration and its consequences have not been rescinded and annulled, the
Indenture Trustee may, but need not (but shall at the written direction of the
Enhancer so long as no Enhancer Default exists), elect to take and maintain
possession of the Trust Estate. It is the desire of the parties hereto and the
Noteholders that there be at all times sufficient funds for the payment of
principal of and interest on the Notes and other obligations of the Issuer
including payment to the Enhancer, and the Indenture Trustee shall take such
desire into account when determining whether or not to take and maintain
possession of the Trust Estate. In determining whether to take and maintain
possession of the Trust Estate, the Indenture Trustee may, but need not, obtain
and rely, and shall be protected in relying in good faith, upon an opinion of an
Independent investment banking or accounting firm of national reputation as to
the feasibility of such proposed action and as to the sufficiency of the Trust
Estate for such purpose.
Section 5.06 Limitation of Suits. No Noteholder shall have any right to
institute any Proceeding, judicial or otherwise, with respect to this Indenture,
or for the appointment of a receiver or trustee, or for any other remedy
hereunder, unless and subject to the provisions of Section 10.17 hereof:
(a) such Noteholder shall have previously given written notice to the Indenture
Trustee of a continuing Event of Default;
(b) the Noteholders of not less than 25% of the aggregate Voting Rights of the
Notes shall have made written request to the Indenture Trustee to institute such
Proceeding in respect of such Event of Default in its own name as Indenture
Trustee hereunder;
(c) such Noteholder or Noteholders shall have offered the Indenture Trustee
reasonable indemnity against the costs, expenses and liabilities to be incurred
by it in complying with such request;
(d) the Indenture Trustee for 60 days after its receipt of such notice, request
and offer of indemnity shall have failed to institute such Proceedings; and
(e) no direction inconsistent with such written request shall have been given to
the Indenture Trustee during such 60-day period by the Noteholders of a majority
of the aggregate Voting Rights of the Notes or by the Enhancer.
It is understood and intended that no Noteholder shall have any right in
any manner whatever by virtue of, or by availing of, any provision of this
Indenture to affect, disturb or prejudice the rights of any other Noteholders or
to obtain or to seek to obtain priority or preference over any other Noteholders
or to enforce any right under this Indenture, except in the manner herein
provided.
In the event the Indenture Trustee shall receive conflicting or
inconsistent requests and indemnity from two or more groups of Noteholders, each
representing less than a majority of the aggregate Voting Rights of the Notes,
the Indenture Trustee shall act at the direction of the group of Noteholders
with the greater Voting Rights. In the event that the Indenture Trustee shall
receive conflicting or inconsistent requests and indemnity from two or more
groups of Noteholders representing the same Voting Rights, then the Indenture
Trustee in its sole discretion may determine what action, if any, shall be
taken, notwithstanding any other provisions of this Indenture.
Section 5.07 Unconditional Rights of Noteholders to Receive Principal and
Interest. Subject to the provisions of this Indenture, the Noteholder of any
Note shall have the right, which is absolute and unconditional, to receive
payment of the principal of and interest, if any, on such Note on or after the
respective due dates thereof expressed in such Note or in this Indenture and to
institute suit for the enforcement of any such payment, and such right shall not
be impaired without the consent of such Noteholder.
Section 5.08 Restoration of Rights and Remedies. If the Indenture Trustee or any
Noteholder has instituted any Proceeding to enforce any right or remedy under
this Indenture and such Proceeding has been discontinued or abandoned for any
reason or has been determined adversely to the Indenture Trustee or to such
Noteholder, then and in every such case the Issuer, the Indenture Trustee and
the Noteholders shall, subject to any determination in such Proceeding, be
restored severally and respectively to their former positions hereunder, and
thereafter all rights and remedies of the Indenture Trustee and the Noteholders
shall continue as though no such Proceeding had been instituted.
Section 5.09 Rights and Remedies Cumulative. No right or remedy herein conferred
upon or reserved to the Indenture Trustee, the Enhancer or the Noteholders is
intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at
law, in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.
Section 5.10 Delay or Omission Not a Waiver. No delay or omission of the
Indenture Trustee, the Enhancer or any Noteholder to exercise any right or
remedy accruing upon any Event of Default shall impair any such right or remedy
or constitute a waiver of any such Event of Default or an acquiescence therein.
Every right and remedy given by this Article V or by law to the Indenture
Trustee or to the Noteholders may be exercised from time to time, and as often
as may be deemed expedient, by the Indenture Trustee or by the Noteholders, as
the case may be.
Section 5.11 Control by Enhancer or Noteholders. The Enhancer (so long as no
Enhancer Default exists) or the Noteholders of a majority of the aggregate Note
Balance of Notes with the consent of the Enhancer, shall have the right to
direct the time, method and place of conducting any Proceeding for any remedy
available to the Indenture Trustee with respect to the Notes or exercising any
trust or power conferred on the Indenture Trustee, provided that:
(a) such direction shall not be in conflict with any rule of law or with this
Indenture;
(b) subject to the express terms of Section 5.04, any written direction to the
Indenture Trustee to sell or liquidate the Trust Estate shall be by the Enhancer
(so long as no Enhancer Default exists) or by the Noteholders of Notes
representing not less than 100% of the aggregate Note Balance of the Notes with
the consent of the Enhancer;
(c) if the conditions set forth in Section 5.05 shall have been satisfied and
the Indenture Trustee elects to retain the Trust Estate pursuant to such
Section, then any direction to the Indenture Trustee by Noteholders of Notes
representing less than 100% of the aggregate Note Balance of the Notes to sell
or liquidate the Trust Estate shall be of no force and effect; and
(d) the Indenture Trustee may take any other action deemed proper by the
Indenture Trustee that is not inconsistent with such direction.
Notwithstanding the rights of Noteholders set forth in this Section, subject to
Section 6.01, the Indenture Trustee need not take any action that it determines
(in its sole discretion) might involve it in liability or might materially
adversely affect the rights of any Noteholders not consenting to such action,
unless the Trustee has received satisfactory indemnity from the Enhancer or a
Noteholder.
Section 5.12 Waiver of Past Defaults. Prior to the declaration of the
acceleration of the maturity of the Notes as provided in Section 5.02, the
Enhancer (so long as no Enhancer Default exists) or the Noteholders of not less
than a majority of the aggregate Note Balance of the Notes, with the consent of
the Enhancer, may waive any past Event of Default and its consequences, except
an Event of Default (a) with respect to payment of principal of or interest on
any of the Notes or (b) in respect of a covenant or provision hereof that cannot
be modified or amended without the consent of the Noteholder of each Note. In
the case of any such waiver, the Issuer, the Indenture Trustee and the
Noteholders shall be restored to their respective former positions and rights
hereunder; but no such waiver shall extend to any subsequent or other Event of
Default or impair any right consequent thereto.
Upon any such waiver, any Event of Default arising therefrom shall be
deemed to have been cured and not to have occurred, for every purpose of this
Indenture; but no such waiver shall extend to any subsequent or other Event of
Default or impair any right consequent thereto.
Section 5.13 Undertaking for Costs. All parties to this Indenture agree, and
each Noteholder by such Noteholder's acceptance of the related Note shall be
deemed to have agreed, that any court may in its discretion require, in any
Proceeding for the enforcement of any right or remedy under this Indenture, or
in any Proceeding against the Indenture Trustee for any action taken, suffered
or omitted by it as Indenture Trustee, the filing by any party litigant in such
Proceeding of an undertaking to pay the costs of such Proceeding, and that such
court may in its discretion assess reasonable costs, including reasonable
attorneys' fees, against any party litigant in such Proceeding, having due
regard to the merits and good faith of the claims or defenses made by such party
litigant; but the provisions of this Section 5.13 shall not apply to (a) any
Proceeding instituted by the Indenture Trustee, (b) any Proceeding instituted by
any Noteholder, or group of Noteholders, in each case holding in the aggregate
more than 10% of the aggregate Note Balance of the Notes or (c) any Proceeding
instituted by any Noteholder for the enforcement of the payment of principal of
or interest on any Note on or after the respective due dates expressed in such
Note and in this Indenture.
Section 5.14 Waiver of Stay or Extension Laws. The Issuer covenants (to the
extent that it may lawfully do so) that it will not at any time insist upon, or
plead or in any manner whatsoever, claim or take the benefit or advantage of,
any stay or extension law wherever enacted, now or at any time hereafter in
force, that may affect the covenants or the performance of this Indenture; and
the Issuer (to the extent that it may lawfully do so) hereby expressly waives
all benefit or advantage of any such law, and covenants that it shall not
hinder, delay or impede the execution of any power herein granted to the
Indenture Trustee, but will suffer and permit the execution of every such power
as though no such law had been enacted.
Section 5.15 Sale of Trust Estate.
(a) The power to effect any sale or other disposition (a "Sale") of any
portion of the Trust Estate pursuant to Section 5.04 is expressly
subject to the provisions of Section 5.05 and this Section 5.15. The
power to effect any such Sale shall not be exhausted by any one or more
Sales as to any portion of the Trust Estate remaining unsold, but shall
continue unimpaired until the entire Trust Estate shall have been sold
or all amounts payable on the Notes and under this Indenture and all
amounts payable under the Insurance Agreement shall have been paid. The
Indenture Trustee may from time to time postpone any public Sale by
public announcement made at the time and place of such Sale. The
Indenture Trustee hereby expressly waives its right to any amount fixed
by law as compensation for any Sale.
(b) The Indenture Trustee shall not in any private Sale sell the Trust
Estate, or any portion thereof, unless:
(i) the Noteholders of all Notes and the Enhancer direct the Indenture
Trustee in writing to make, such Sale,
(ii) the proceeds of such Sale would be not less than the entire amount that
would be payable to the Noteholders under the Notes, the
Certificateholders under the Certificates and the Enhancer in respect of
amounts drawn under the Policy and any other amounts due the Enhancer
under the Insurance Agreement, in full payment thereof in accordance
with Section 5.02, on the Payment Date next succeeding the date of such
Sale,, or
(iii)the Indenture Trustee determines, in its sole discretion, that the
conditions for retention of the Trust Estate set forth in Section 5.05
cannot be satisfied (in making any such determination, the Indenture
Trustee may rely and shall be protected in relying in good faith upon an
opinion of an Independent investment banking firm obtained and delivered as
provided in Section 5.05), and the Enhancer consents in writing to such
Sale (which consent shall not be unreasonably withheld), and the
Noteholders of Notes representing at least 66 2/3% of the aggregate Note
Balance of the Notes consent in writing to such Sale.
The purchase by the Indenture Trustee of all or any portion of the Trust Estate
at a private Sale shall not be deemed a Sale or other disposition thereof for
purposes of this Section 5.15(b).
(c) (c) Unless the Noteholders and the Enhancer shall have otherwise
consented or directed the Indenture Trustee, at any public Sale of all
or any portion of the Trust Estate at which a minimum bid equal to or
greater than the amount described in paragraph (ii) of subsection (b) of
this Section 5.15 has not been established by the Indenture Trustee and
no Person bids an amount equal to or greater than such amount, then the
Indenture Trustee shall bid an amount at least $1.00 more than the
highest other bid, which bid shall be subject to the provisions of
Section 5.15(d)(ii) herein.
(d) In connection with a Sale of all or any portion of the Trust Estate:
(i) any Noteholder may bid for and, with the consent of the Enhancer, purchase
the property offered for sale, and upon compliance with the terms of sale
may hold, retain and possess and dispose of such property, without further
accountability, and may, in paying the purchase money therefor, deliver any
Notes or claims for interest thereon in lieu of cash up to the amount which
shall, upon distribution of the net proceeds of such sale, be payable
thereon, and such Notes, in case the amounts so payable thereon shall be
less than the amount due thereon, shall be returned to the Noteholders
thereof after being appropriately stamped to show such partial payment;
(ii) the Indenture Trustee may bid for and acquire the property offered for Sale
in connection with any Sale thereof and, subject to any requirements of,
and to the extent permitted by, applicable law in connection therewith, may
purchase all or any portion of the Trust Estate in a private sale. In lieu
of paying cash therefor, the Indenture Trustee may make settlement for the
purchase price by crediting the gross Sale price against the sum of (A) the
amount that would be distributable to the Noteholders and the
Certificateholders and amounts owing to the Enhancer as a result of such
Sale in accordance with Section 5.04(b) on the Payment Date next succeeding
the date of such Sale and (B) the expenses of the Sale and of any
Proceedings in connection therewith that are reimbursable to it, without
being required to produce the Notes in order to complete any such Sale or
in order for the net Sale price to be credited against such Notes, and any
property so acquired by the Indenture Trustee shall be held and dealt with
by it in accordance with the provisions of this Indenture;
(iii) the Indenture Trustee shall execute and deliver an appropriate
instrument of conveyance transferring its interest in any portion of the
Trust Estate in connection with a Sale thereof;
(iv) the Indenture Trustee is hereby irrevocably appointed the agent and
attorney-in-fact of the Issuer to transfer and convey its interest in
any portion of the Trust Estate in connection with a Sale thereof, and
to take all action necessary to effect such Sale; and
(v) no purchaser or transferee at such a Sale shall be bound to ascertain
the Indenture Trustee's authority, inquire into the satisfaction of any
conditions precedent or see to the application of any monies.
Section 5.16 Action on Notes. The Indenture Trustee's right to seek and recover
judgment on the Notes or under this Indenture shall not be affected by the
seeking, obtaining or application of any other relief under or with respect to
this Indenture. Neither the lien of this Indenture nor any rights or remedies of
the Indenture Trustee or the Noteholders shall be impaired by the recovery of
any judgment by the Indenture Trustee against the Issuer or by the levy of any
execution under such judgment upon any portion of the Trust Estate or upon any
of the assets of the Issuer. Any money or property collected by the Indenture
Trustee shall be applied in accordance with Section 5.04(b).
Section 5.17 Performance and Enforcement of Certain Obligations.
(a) (a) Promptly following a written request from the Enhancer or the Indenture
Trustee (with the written consent of the Enhancer), the Issuer, in its capacity
as owner of the Mortgage Loans, shall, with the written consent of the Enhancer,
take all such lawful action as the Indenture Trustee may request to cause the
Issuer to compel or secure the performance and observance by the Sellers and the
Servicer, as applicable, of each of their obligations to the Issuer under or in
connection with the Purchase Agreement and the Servicing Agreement, and to
exercise any and all rights, remedies, powers and privileges lawfully available
to the Issuer under or in connection with the Purchase Agreement and the
Servicing Agreement to the extent and in the manner directed by the Indenture
Trustee, as pledgee of the Mortgage Loans, including the transmission of notices
of default on the part of the Sellers or the Servicer thereunder and the
institution of legal or administrative actions or proceedings to compel or
secure performance by the Sellers or the Servicer of each of their obligations
under the Purchase Agreement and the Servicing Agreement.
(b) If an Event of Default shall have occurred and be continuing, the Indenture
Trustee, as pledgee of the Mortgage Loans, subject to the rights of the Enhancer
under the Servicing Agreement, may, and at the direction (which direction shall
be in writing or by telephone (confirmed in writing promptly thereafter)) of the
Noteholders of 66 2/3% of the aggregate Voting Rights of the Notes, shall,
exercise all rights, remedies, powers, privileges and claims of the Issuer
against the Sellers or the Servicer under or in connection with the Purchase
Agreement and the Servicing Agreement, including the right or power to take any
action to compel or secure performance or observance by the Sellers or the
Servicer, as the case may be, of each of their obligations to the Issuer
thereunder and to give any consent, request, notice, direction, approval,
extension or waiver under the Purchase Agreement and the Servicing Agreement, as
the case may be, and any right of the Issuer to take such action shall not be
suspended. In connection therewith, as determined by the Indenture Trustee, the
Issuer shall take all actions necessary to effect the transfer of the Mortgage
Loans to the Indenture Trustee.
ARTICLE VI
The Indenture Trustee
Section 6.01 Duties of Indenture Trustee.
(a) If an Event of Default shall have occurred and be continuing, the
Indenture Trustee shall exercise the rights and powers vested in it by
this Indenture and use the same degree of care and skill in their
exercise as a prudent Person would exercise or use under the
circumstances in the conduct of such Person's own affairs.
(b) Except during the continuance of an Event of Default:
(i) the Indenture Trustee undertakes to perform such duties and only such
duties as are specifically set forth in this Indenture and no implied
covenants or obligations shall be read into this Indenture against the
Indenture Trustee; and
(ii) in the absence of bad faith on its part, the Indenture Trustee may
conclusively rely, as to the truth of the statements and the correctness
of the opinions expressed therein, upon certificates, reports or
opinions furnished to the Indenture Trustee and conforming to the
requirements of this Indenture; provided, however, that the Indenture
Trustee shall examine the certificates, reports and opinions to
determine whether or not they conform to the requirements of this
Indenture.
(c) The Indenture Trustee may not be relieved from liability for its own
negligent action, its own negligent failure to act or its own willful
misconduct, except that:
(i) this paragraph does not limit the effect of paragraph (a) of this
Section 6.01;
(ii) the Indenture Trustee shall not be liable for any error of judgment made
in good faith by a Responsible Officer unless it is proved that the
Indenture Trustee was negligent in ascertaining the pertinent facts; and
(iii) the Indenture Trustee shall not be liable with respect to any action it
takes or omits to take in good faith in accordance with a direction
received by it pursuant to Section 5.11 or any direction from the
Enhancer that the Enhancer is entitled to give under any of the Basic
Documents.
(d) The Indenture Trustee shall not be liable for interest on any money
received by it except as the Indenture Trustee may agree in writing with
the Issuer.
(e) Money held in trust by the Indenture Trustee need not be segregated from
other funds except to the extent required by law or the terms of this
Indenture or the Trust Agreement.
(f) No provision of this Indenture shall require the Indenture Trustee to
expend or risk its own funds or otherwise incur financial liability in
the performance of any of its duties hereunder or in the exercise of any
of its rights or powers, if it shall have reasonable grounds to believe
that repayment of such funds or adequate indemnity against such risk or
liability is not reasonably assured to it.
(g) Every provision of this Indenture relating to the conduct or affecting
the liability of or affording protection to the Indenture Trustee shall
be subject to the provisions of this Section and to the provisions of
TIA.
(h) With respect to each Payment Date, on the Business Day following the
related Determination Date, the Indenture Trustee shall forward or cause
to be forwarded by mail, or other mutually agreed-upon method, to the
Enhancer and the Servicer, a statement setting forth, to the extent
applicable, during the Pre-Funding Period, the Pre-Funded Amount as of
such Payment Date and any transfers of funds in connection therewith.
(i) The Indenture Trustee hereby accepts appointment as Certificate Paying
Agent under the Trust Agreement and agrees to be bound by the provisions
of the Trust Agreement relating to the Certificate Paying Agent. The
Indenture Trustee hereby agrees to be bound by the provisions of Article
IX of the Trust Agreement. The rights and privileges of the Indenture
Trustee granted under this Article shall be construed to include its
appointment as Certificate Paying Agent.
(j) The Indenture Trustee shall not be required to take notice or be deemed
to have notice or knowledge of any Event of Default (except for an Event
of Default specified in clause (a) of the definition thereof) unless a
Responsible Officer of the Indenture Trustee shall have received written
notice or have actual knowledge thereof. In the absence of receipt of
such notice or such knowledge, the Indenture Trustee may conclusively
assume that there is no default or Event of Default.
(k) The Indenture Trustee shall have no duty to see to any recording or
filing of any financing statement or continuation statement evidencing a
security interest or to see to the maintenance of any such recording or
filing or to any rerecording or refiling of any thereof.
Section 6.02 Rights of Indenture Trustee.
(a) The Indenture Trustee may rely and shall be protected in acting or
refraining from acting in good faith upon any resolution, Officer's Certificate,
opinion of counsel, certificate of auditors, or any other certificate,
statement, instrument, report, notice, consent or other document believed by it
to be genuine and to have been signed or presented by the proper person. The
Indenture Trustee need not investigate any fact or matter stated in any such
document.
(b) Before the Indenture Trustee acts or refrains from acting, it may require an
Officer's Certificate or an Opinion of Counsel. The Indenture Trustee shall not
be liable for any action it takes or omits to take in good faith in reliance on
any such Officer's Certificate or Opinion of Counsel.
(c) The Indenture Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents or
attorneys or a custodian or nominee, and the Indenture Trustee shall not be
responsible for any misconduct or negligence on the part of, or for the
supervision of, any such agent, attorney, custodian or nominee appointed with
due care by it hereunder.
(d) The Indenture Trustee shall not be liable for any action it takes or omits
to take in good faith which it believes to be authorized or within its rights or
powers; provided, however, that the Indenture Trustee's conduct does not
constitute willful misconduct, negligence or bad faith.
(e) The Indenture Trustee may consult with counsel, and the advice or opinion of
counsel with respect to legal matters relating to this Indenture and the Notes
shall be full and complete authorization and protection from liability in
respect to any action taken, omitted or suffered by it hereunder in good faith
and in accordance with the advice or opinion of such counsel.
(f) The Indenture Trustee shall not be personally liable for any action taken,
suffered or omitted by it in good faith and believed by it to be authorized or
within the discretion or rights or powers conferred upon it by this Agreement,
unless it shall be proved that the Indenture Trustee was negligent in
ascertaining the pertinent facts.
(g) Prior to the occurrence of an Event of Default hereunder, and after the
curing or waiver of all Events of Default that may have occurred, the Indenture
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, consent, order, approval, bond or other paper or document,
unless requested in writing to do so by the Enhancer or the Noteholders
representing a majority of the aggregate Voting Rights; provided, however, that
if the payment within a reasonable time to the Indenture Trustee of the costs,
expenses or liabilities likely to be incurred by it in the making of such
investigation is, in the opinion of the Indenture Trustee, not assured to the
Indenture Trustee by the security afforded to it by the terms of this Indenture,
the Indenture Trustee may require indemnity satisfactory to the Indenture
Trustee against such cost, expense or liability as a condition to taking any
such action.
(h) The Indenture Trustee shall be under no obligation to exercise any of the
trusts or powers vested in it by this Agreement or to institute, conduct or
defend any litigation hereunder or in relation hereto at the request, order or
direction of any of the Noteholders, pursuant to the provisions of this
Agreement, unless the Noteholders shall have offered to the Indenture Trustee
reasonable security or indemnity against the costs, expenses and liabilities
which may be incurred therein or thereby; nothing contained herein shall,
however, relieve the Indenture Trustee of the obligation, upon the occurrence of
an Event of Default (which has not been cured or waived), to exercise such of
the rights and powers vested in it by this Agreement, and to use the same degree
of care and skill in their exercise as a prudent investor would exercise or use
under the circumstances in the conduct of such investor's own affairs.
Section 6.03 Individual Rights of Indenture Trustee. The Indenture Trustee in
its individual or any other capacity may become the owner or pledgee of Notes
and may otherwise deal with the Issuer or its Affiliates with the same rights it
would have if it were not Indenture Trustee. Any Note Registrar, co-registrar or
co-paying agent may do the same with like rights. However, the Indenture Trustee
must comply with Sections 6.11 and 6.12.
Section 6.04 Indenture Trustee's Disclaimer. The Indenture Trustee shall not be
(i) responsible for and makes no representation as to the validity or adequacy
of this Indenture or the Notes, (ii) accountable for the Issuer's use of the
proceeds from the Notes or (iii) responsible for any statement of the Issuer in
this Indenture or in any document issued in connection with the sale of the
Notes or in the Notes, other than the Indenture Trustee's certificate of
authentication thereon.
Section 6.05 Notice of Event of Default. If an Event of Default shall occur and
be continuing, and if such Event of Default is known to a Responsible Officer of
the Indenture Trustee, then the Indenture Trustee shall give notice thereof to
the Enhancer. The Indenture Trustee shall mail to each Noteholder notice of such
Event of Default within 90 days after it occurs. Except in the case of an Event
of Default with respect to the payment of principal of or interest on any Note,
the Indenture Trustee may withhold such notice if and so long as a committee of
its Responsible Officers in good faith determines that withholding such notice
is in the interests of the Noteholders.
Section 6.06 Reports by Indenture Trustee to Noteholders. The Indenture Trustee
shall deliver to each Noteholder such information as may be required to enable
such Noteholder to prepare its federal and state income tax returns. In
addition, upon Issuer Request, the Indenture Trustee shall promptly furnish such
information reasonably requested by the Issuer that is reasonably available to
the Indenture Trustee to enable the Issuer to perform its federal and state
income tax reporting obligations.
Section 6.07 Compensation and Indemnity. The Indenture Trustee shall be
compensated and indemnified by the Servicer in accordance with Section 6.06 of
the Servicing Agreement. All amounts owing the Indenture Trustee hereunder in
excess of such amount, as well as any amount owed to the Indenture Trustee in
accordance with Section 6.06 of the Servicing Agreement, to the extent the
Servicer has failed to pay such amount, shall be paid solely as provided in
Section 3.05 hereof (subject to the priorities set forth therein). The Indenture
Trustee's compensation shall not be limited by any law on compensation of a
trustee of an express trust. The Issuer shall reimburse the Indenture Trustee
for all reasonable out-of-pocket expenses incurred or made by it, including
costs of collection, in addition to the compensation for its services. Such
expenses shall include the reasonable compensation, expenses, disbursements and
advances of the Indenture Trustee's agents, counsel, accountants and experts.
The Issuer shall indemnify the Indenture Trustee against any and all loss,
liability or expense (including attorneys' fees) incurred by it in connection
with the administration of this trust and the performance of its duties
hereunder. The Indenture Trustee shall notify the Issuer promptly of any claim
for which it may seek indemnity. Failure by the Indenture Trustee to so notify
the Issuer shall not relieve the Issuer of its obligations hereunder. The Issuer
shall defend any such claim, and the Indenture Trustee may have separate counsel
and the Issuer shall pay the fees and expenses of such counsel. The Issuer is
not obligated to reimburse any expense or indemnify against any loss, liability
or expense incurred by the Indenture Trustee through the Indenture Trustee's own
willful misconduct, negligence or bad faith.
The Issuer's payment obligations to the Indenture Trustee pursuant to
this Section 6.07 shall survive the discharge of this Indenture or the
termination or the resignation of the Indenture Trustee. When the Indenture
Trustee incurs expenses after the occurrence of an Event of Default specified in
clause (c) or (d) of the definition thereof with respect to the Issuer, such
expenses are intended to constitute expenses of administration under Title 11 of
the United States Code or any other applicable federal or state bankruptcy,
insolvency or similar law.
Section 6.08 Replacement of Indenture Trustee. No resignation or removal of the
Indenture Trustee and no appointment of a successor Indenture Trustee shall
become effective until the acceptance of appointment by the successor Indenture
Trustee pursuant to this Section 6.08. The Indenture Trustee may resign at any
time by so notifying the Issuer and the Enhancer. The Enhancer or the
Noteholders of a majority of the aggregate Note Balance of the Notes may remove
the Indenture Trustee by so notifying the Indenture Trustee and the Enhancer (if
given by such Noteholders) and may appoint a successor Indenture Trustee. Unless
a Servicer Default has occurred and is continuing, the appointment of any
successor Indenture Trustee shall be subject to the prior written approval of
the Servicer. The Issuer shall remove the Indenture Trustee if:
(a) the Indenture Trustee fails to comply with Section 6.11;
(b) the Indenture Trustee is adjudged a bankrupt or insolvent;
(c) a receiver or other public officer takes charge of the Indenture Trustee or
its property; or
(d) the Indenture Trustee otherwise becomes incapable of fulfilling its duties
under the Basic Documents.
If the Indenture Trustee resigns or is removed or if a vacancy exists in
the office of the Indenture Trustee for any reason (the Indenture Trustee in
such event being referred to herein as the retiring Indenture Trustee), the
Issuer shall promptly appoint a successor Indenture Trustee with the consent of
the Enhancer, which consent shall not be unreasonably withheld. In addition, the
Indenture Trustee shall resign to avoid being directly or indirectly controlled
by the Issuer.
A successor Indenture Trustee shall deliver a written acceptance of its
appointment to the retiring Indenture Trustee and to the Issuer. Thereupon, the
resignation or removal of the retiring Indenture Trustee shall become effective,
and the successor Indenture Trustee shall have all the rights, powers and duties
of the Indenture Trustee under this Indenture. The successor Indenture Trustee
shall mail a notice of its succession to the Noteholders. The retiring Indenture
Trustee shall promptly transfer all property held by it as Indenture Trustee to
the successor Indenture Trustee.
If a successor Indenture Trustee does not take office within 60 days
after the retiring Indenture Trustee resigns or is removed, then the retiring
Indenture Trustee, the Issuer or the Noteholders of a majority of aggregate Note
Balance of the Notes may petition any court of competent jurisdiction for the
appointment of a successor Indenture Trustee.
If the Indenture Trustee fails to comply with Section 6.11, any
Noteholder may petition any court of competent jurisdiction for the removal of
the Indenture Trustee and the appointment of a successor Indenture Trustee.
Notwithstanding the replacement of the Indenture Trustee pursuant to
this Section, the Issuer's obligations under Section 6.07 shall continue for the
benefit of the retiring Indenture Trustee.
Section 6.09 Successor Indenture Trustee by Merger. If the Indenture Trustee
consolidates with, merges or converts into, or transfers all or substantially
all its corporate trust business or assets to, another corporation or banking
association, then the resulting, surviving or transferee corporation without any
further act shall be the successor Indenture Trustee; provided, that such
corporation or banking association shall be otherwise qualified and eligible
under Section 6.11. The Indenture Trustee shall provide the Rating Agencies with
written notice of any such transaction occurring after the Closing Date.
If at the time of any such succession by merger, conversion or
consolidation, any of the Notes shall have been authenticated but not delivered,
then any such successor to the Indenture Trustee may adopt the certificate of
authentication of any predecessor trustee, and deliver such Notes so
authenticated. If at such time any of the Notes shall not have been
authenticated, any successor to the Indenture Trustee may authenticate such
Notes either in the name of any predecessor hereunder or in the name of the
successor to the Indenture Trustee; and in all such cases, such certificates
shall have the full force that it is anywhere in the Notes or in this Indenture
provided that the certificate of the Indenture Trustee shall have.
Section 6.10 Appointment of Co-Indenture Trustee or Separate Indenture Trustee.
(a) Notwithstanding any other provisions of this Indenture, at any time, for
the purpose of meeting any legal requirement of any jurisdiction in
which any part of the Trust Estate may at such time be located, the
Indenture Trustee shall have the power and may execute and deliver all
instruments to appoint one or more Persons to act as a co-trustee or
co-trustees, or separate trustee or separate trustees, of all or any
part of the Issuer, and to vest in such Person or Persons, in such
capacity and for the benefit of the Noteholders, such title to the Trust
Estate, or any part thereof, and, subject to the other provisions of
this Section, such powers, duties, obligations, rights and trusts as the
Indenture Trustee may consider necessary or desirable. No co-trustee or
separate trustee hereunder shall be required to meet the terms of
eligibility as a successor trustee under Section 6.11, and no notice to
Noteholders of the appointment of any co-trustee or separate trustee
shall be required under Section 6.08 hereof.
(b) Every separate trustee and co-trustee shall, to the extent permitted by
law, be appointed and act subject to the following provisions and
conditions:
(i) all rights, powers, duties and obligations conferred or imposed upon the
Indenture Trustee shall be conferred or imposed upon and exercised or
performed by the Indenture Trustee and such separate trustee or co-trustee
jointly (it being understood that such separate trustee or co-trustee is
not authorized to act separately without the Indenture Trustee joining in
such act), except to the extent that under any law of any jurisdiction in
which any particular act or acts are to be performed the Indenture Trustee
shall be incompetent or unqualified to perform such act or acts, in which
event such rights, powers, duties and obligations (including the holding of
title to the Trust Estate or any portion thereof in any such jurisdiction)
shall be exercised and performed singly by such separate trustee or
co-trustee, but solely at the direction of the Indenture Trustee;
(ii) no trustee hereunder shall be personally liable by reason of any act or
omission of any other trustee hereunder; and
(iii) the Indenture Trustee may at any time accept the resignation of or
remove any separate trustee or co-trustee.
(c) Any notice, request or other writing given to the Indenture Trustee
shall be deemed to have been given to each of the then separate trustees
and co-trustees, as effectively as if given to each of them. Every
instrument appointing any separate trustee or co-trustee shall refer to
this Agreement and the conditions of this Article VI. Each separate
trustee and co-trustee, upon its acceptance of the trusts conferred,
shall be vested with the estates or property specified in its instrument
of appointment, either jointly with the Indenture Trustee or separately,
as may be provided therein, subject to all the provisions of this
Indenture, specifically including every provision of this Indenture
relating to the conduct of, affecting the liability of, or affording
protection to, the Indenture Trustee. Every such instrument shall be
filed with the Indenture Trustee.
(d) Any separate trustee or co-trustee may at any time constitute the
Indenture Trustee, its agent or attorney-in-fact with full power and
authority, to the extent not prohibited by law, to do any lawful act
under or in respect of this Indenture on its behalf and in its name. If
any separate trustee or co-trustee shall die, become incapable of
acting, resign or be removed, all of its estates, properties, rights,
remedies and trusts shall vest in and be exercised by the Indenture
Trustee, to the extent permitted by law, without the appointment of a
new or successor trustee.
Section 6.11 Eligibility; Disqualification. The Indenture Trustee shall at all
times satisfy the requirements of TIA ss. 310(a). The Indenture Trustee shall
have a combined capital and surplus of at least $50,000,000 as set forth in its
most recent published annual report of condition and it or its parent shall have
a long-term debt rating of A or better by Xxxxx'x. The Indenture Trustee shall
comply with TIA ss. 310(b), including the optional provision permitted by the
second sentence of TIA ss. 310(b)(9); provided, however, that there shall be
excluded from the operation of TIA ss. 310(b)(1) any indenture or indentures
under which other securities of the Issuer are outstanding if the requirements
for such exclusion set forth in TIA ss. 310(b)(1) are met.
Section 6.12 Preferential Collection of Claims Against Issuer. The Indenture
Trustee shall comply with TIA ss. 311(a), excluding any creditor relationship
listed in TIA ss. 311(b). An Indenture Trustee that has resigned or been removed
shall be subject to TIA ss. 311(a) to the extent indicated.
Section 6.13 Representations and Warranties. The Indenture Trustee hereby
represents and warrants that:
(a) The Indenture Trustee is duly organized, validly existing and in good
standing as a national banking association with power and authority to own its
properties and to conduct its business as such properties are currently owned
and such business is currently conducted.
(b) The Indenture Trustee has the power and authority to execute and deliver
this Indenture and to carry out its terms; and the execution, delivery and
performance of this Indenture have been duly authorized by the Indenture Trustee
by all necessary corporate action.
(c) The consummation of the transactions contemplated by this Indenture and the
fulfillment of the terms hereof do not conflict with, result in any breach of
any of the terms and provisions of, or constitute (with or without notice or
lapse of time) a default under, the articles of organization or bylaws of the
Indenture Trustee or any agreement or other instrument to which the Indenture
Trustee is a party or by which it is bound.
(d) To the Indenture Trustee's best knowledge, there are no Proceedings or
investigations pending or threatened before any court, regulatory body,
administrative agency or other governmental instrumentality having jurisdiction
over the Indenture Trustee or its properties (A) asserting the invalidity of
this Indenture, (B) seeking to prevent the consummation of any of the
transactions contemplated by this Indenture or (C) seeking any determination or
ruling that might materially and adversely affect the performance by the
Indenture Trustee of its obligations under, or the validity or enforceability
of, this Indenture.
(e) The Indenture Trustee does not have notice of any adverse claim (as such
terms are used in Section 8-302 of the UCC in effect in the State of Delaware)
with respect to the Mortgage Loans.
Section 6.14 Directions to Indenture Trustee. The Indenture
Trustee is hereby directed:
(a) to accept the pledge of the Mortgage Loans and hold the assets of the Trust
in trust for the Noteholders and the Enhancer;
(b) to authenticate and deliver the Notes substantially in the form prescribed
by Exhibit A in accordance with the terms of this Indenture; and
(c) to take all other actions as shall be required to be taken by the terms of
this Indenture.
Section 6.15 Indenture Trustee May Own Securities. The Indenture Trustee, in its
individual or any other capacity, may become the owner or pledgee of Securities,
and, subject to the TIA, may transact business with the other parties interested
herein, with the same rights it would have if it were not Indenture Trustee.
ARTICLE VII
Noteholders' Lists and Reports
Section 7.01 Issuer to Furnish Indenture Trustee Names and Addresses of
Noteholders. The Issuer shall furnish or cause to be furnished to the Indenture
Trustee (a) not more than five days after each Record Date, a list, in such form
as the Indenture Trustee may reasonably require, of the names and addresses of
the Noteholders as of such Record Date, and (b) at such other times as the
Indenture Trustee and the Enhancer may request in writing, within 30 days after
receipt by the Issuer of any such request, a list of similar form and content as
of a date not more than 10 days prior to the time such list is furnished;
provided, however, that for so long as the Indenture Trustee is the Note
Registrar, no such list need be furnished.
Section 7.02 Preservation of Information; Communications to Noteholders.
(a) The Indenture Trustee shall preserve, in as current a form as is reasonably
practicable, the names and addresses of the Noteholders contained in the most
recent list furnished to the Indenture Trustee as provided in Section 7.01 and
the names and addresses of the Noteholders received by the Indenture Trustee in
its capacity as Note Registrar. The Indenture Trustee may destroy any list
furnished to it as provided in such Section 7.01 upon receipt of a new list so
furnished.
(b) Noteholders may communicate pursuant to TIA ss. 312(b) with other
Noteholders with respect to their rights under this Indenture or under the
Notes.
(c) The Issuer, the Indenture Trustee and the Note Registrar shall have the
protection of TIA ss. 312(c).
Section 7.03 Reports by Issuer.
(a) The Issuer shall:
(i) file with the Indenture Trustee, within 15 days after the Issuer is
required to file the same with the Commission, copies of the annual
reports and the information, documents and other reports (or copies of
such portions of any of the foregoing as the Commission may from time to
time by rules and regulations prescribe) that the Issuer may be required
to file with the Commission pursuant to Section 13 or 15(d) of the
Exchange Act;
(ii) file with the Indenture Trustee and the Commission, in accordance with
rules and regulations prescribed from time to time by the Commission,
such additional information, documents and reports with respect to
compliance by the Issuer with the conditions and covenants of this
Indenture as may be required from time to time by such rules and
regulations; and
(iii) supply to the Indenture Trustee (and the Indenture Trustee shall
transmit by mail to all Noteholders described in TIA ss. 313(c)) such
summaries of any information, documents and reports required to be filed
by the Issuer pursuant to clauses (i) and (ii) of this Section 7.03(a)
and by rules and regulations prescribed from time to time by the
Commission.
(b) Unless the Issuer otherwise determines, the fiscal year of the Issuer
shall end on December 31 of each year.
Section 7.04 Reports by Indenture Trustee. If required by TIA ss. 313(a), within
60 days after each January 1, beginning with January 1, 2005, the Indenture
Trustee shall make available to each Noteholder and the Enhancer as required by
TIA ss. 313(c) a brief report dated as of such date that complies with TIA ss.
313(a). The Indenture Trustee also shall comply with TIA ss. 313(b).
A copy of each report at the time of its distribution to Noteholders
shall be filed by the Indenture Trustee with the Commission, if required, and
each stock exchange, if any, on which the Notes are listed. The Issuer shall
notify the Indenture Trustee if and when the Notes are listed on any stock
exchange.
ARTICLE VIII
Accounts, Disbursements and Releases
Section 8.01 Collection of Money. Except as otherwise expressly provided herein,
the Indenture Trustee may demand payment or delivery of, and shall receive and
collect, directly and without intervention or assistance of any fiscal agent or
other intermediary, all money and other property payable to or receivable by the
Indenture Trustee pursuant to this Indenture. The Indenture Trustee shall apply
all such money received by it as provided in this Indenture. Except as otherwise
expressly provided in this Indenture, if any default occurs in the making of any
payment or performance under any agreement or instrument that is part of the
Trust Estate, the Indenture Trustee may take such action as may be appropriate
to enforce such payment or performance, including the institution and
prosecution of appropriate Proceedings. Any such action shall be without
prejudice to any right to claim a Default or Event of Default under this
Indenture and any right to proceed thereafter as provided in Article V.
Section 8.02 Trust Accounts.
(a) On or prior to the Closing Date, the Issuer shall cause the Indenture
Trustee to establish and maintain, in the name of the Indenture Trustee, for the
benefit of the Noteholders and the Enhancer , the Certificate Paying Agent, on
behalf of the Certificateholders, the Note Payment Account as provided in
Section 3.01 of this Indenture.
(b) All monies deposited from time to time in the Note Payment Account pursuant
to the Servicing Agreement and all deposits therein pursuant to this Indenture
are for the benefit of the Noteholders, the Enhancer and the Certificate Paying
Agent, on behalf of the Certificateholders, and all investments made with such
monies, including all income or other gain from such investments, are for the
benefit of the Servicer as provided in Section 5.01 of the Servicing Agreement.
On each Payment Date, the Indenture Trustee shall distribute all amounts
on deposit in the Note Payment Account to the Noteholders in respect of the
Notes and, in its capacity as Certificate Paying Agent, to the
Certificateholders from the Distribution Account in the order of priority set
forth in Section 3.05 (except as otherwise provided in Section 5.04(b) and in
accordance with the Servicing Certificate).
The Indenture Trustee shall invest any funds in the Note Payment Account
in Permitted Investments selected in writing by the Servicer maturing no later
than the Business Day preceding the next succeeding Payment Date (except that
any investment in the institution with which the Note Payment Account is
maintained may mature on such Payment Date) and shall not be sold or disposed of
prior to the maturity. In addition, such Permitted Investments shall not be
purchased at a price in excess of par. The Indenture Trustee shall have no
liability whatsoever for investment losses on Permitted Investments, if such
investments are made in accordance with the provisions of this Indenture and the
Indenture Trustee is not the obligor under the Permitted Investment.
Section 8.03 Officer's Certificate. The Indenture Trustee shall receive at least
seven days' notice when requested by the Issuer to take any action pursuant to
Section 8.05(a), accompanied by copies of any instruments to be executed, and
the Indenture Trustee shall also require, as a condition to such action, an
Officer's Certificate, in form and substance satisfactory to the Indenture
Trustee, stating the legal effect of any such action, outlining the steps
required to complete the same, and concluding that all conditions precedent to
the taking of such action have been complied with.
Section 8.04 Termination Upon Distribution to Noteholders. This Indenture and
the respective obligations and responsibilities of the Issuer and the Indenture
Trustee created hereby shall terminate upon the distribution to the Noteholders,
the Certificate Paying Agent on behalf of the Certificateholders and the
Indenture Trustee of all amounts required to be distributed pursuant to Article
III; provided, however, that in no event shall the trust created hereby continue
beyond the expiration of 21 years from the death of the survivor of the
descendants of Xxxxxx X. Xxxxxxx, the late ambassador of the United States to
the Court of St. James's, living on the date hereof.
Section 8.05 Release of Trust Estate.
(a) Subject to the payment of its fees, expenses and indemnification, the
Indenture Trustee may, and when required by the provisions of this Indenture or
the Servicing Agreement, shall, execute instruments to release property from the
lien of this Indenture, or convey the Indenture Trustee's interest in the same,
in a manner and under circumstances that are not inconsistent with the
provisions of this Indenture. No Person relying upon an instrument executed by
the Indenture Trustee as provided in Article VIII hereunder shall be bound to
ascertain the Indenture Trustee's authority, inquire into the satisfaction of
any conditions precedent, or see to the application of any monies.
(b) The Indenture Trustee shall, at such time as (i) there are no Notes
Outstanding, (ii) all sums due the Indenture Trustee pursuant to this Indenture
have been paid and (iii) all sums due the Enhancer have been paid, release any
remaining portion of the Trust Estate that secured the Notes from the lien of
this Indenture.
(c) (c) The Indenture Trustee shall release property from the lien of this
Indenture pursuant to this Section 8.05 only upon receipt of an Issuer Request
accompanied by an Officer's Certificate and a letter from the Enhancer stating
that the Enhancer has no objection to such request from the Issuer.
(d) The Indenture Trustee shall, at the request of the Issuer or the Depositor,
surrender the Policy to the Enhancer for cancellation, upon final payment of
principal of and interest on the Notes.
Section 8.06 Surrender of Notes Upon Final Payment. By acceptance of any Note,
the Noteholder thereof agrees to surrender such Note to the Indenture Trustee
promptly, prior to such Noteholder's receipt of the final payment thereon.
ARTICLE IX
Supplemental Indentures
Section 9.01 Supplemental Indentures Without Consent of Noteholders.
(a) Without the consent of the Noteholders of any Notes but with prior
notice to the Rating Agencies and the prior written consent of the
Enhancer (which consent shall not be unreasonably withheld and so long
as no Enhancer Default exists), the Issuer and the Indenture Trustee,
when authorized by an Issuer Request, at any time and from time to time,
may enter into one or more indentures supplemental hereto (which shall
conform to the provisions of the Trust Indenture Act as in force at the
date of the execution thereof), in form satisfactory to the Indenture
Trustee, for any of the following purposes:
(i) to correct or amplify the description of any property at any time
subject to the lien of this Indenture, or better to assure, convey and
confirm unto the Indenture Trustee any property subject or required to
be subjected to the lien of this Indenture, or to subject to the lien of
this Indenture additional property;
(ii) to evidence the succession, in compliance with the applicable provisions
hereof, of another Person to the Issuer, and the assumption by any such
successor of the covenants of the Issuer herein and in the Notes
contained;
(iii) to add to the covenants of the Issuer, for the benefit of the
Noteholders or the Enhancer, or to surrender any right or power herein
conferred upon the Issuer;
(iv) to convey, transfer, assign, mortgage or pledge any property to or with
the Indenture Trustee;
(v) to cure any ambiguity, to correct any error or to correct or supplement
any provision herein or in any supplemental indenture that may be
inconsistent with any other provision herein or in any supplemental
indenture;
(vi) to make any other provisions with respect to matters or questions
arising under this Indenture or in any supplemental indenture; provided,
that such action shall not materially and adversely affect the interests
of the Noteholders or the Enhancer (as evidenced by an Opinion of
Counsel);
(vii) to evidence and provide for the acceptance of the appointment hereunder
by a successor trustee with respect to the Notes and to add to or change
any of the provisions of this Indenture as shall be necessary to
facilitate the administration of the trusts hereunder by more than one
trustee, pursuant to the requirements of Article VI; or
(viii) to modify, eliminate or add to the provisions of this Indenture to such
extent as shall be necessary to effect the qualification of this
Indenture under TIA or under any similar federal statute hereafter
enacted and to add to this Indenture such other provisions as may be
expressly required by TIA;
provided, however, that no such supplemental indenture shall be entered
into unless the Indenture Trustee shall have received an Opinion of Counsel to
the effect that the execution of such supplemental indenture will not give rise
to any material adverse tax consequence to the Noteholders, including any
Adverse REMIC Event.
The Indenture Trustee is hereby authorized to join in the execution of
any such supplemental indenture and to make any further appropriate agreements
and stipulations that may be therein contained.
(b) The Issuer and the Indenture Trustee, when authorized by an Issuer Request,
may, without the consent of any Noteholder but with prior notice to the Rating
Agencies and the Enhancer, enter into an indenture or indentures supplemental
hereto for the purpose of adding any provisions to, or changing in any manner or
eliminating any of the provisions of, this Indenture or of modifying in any
manner the rights of the Noteholders under this Indenture; provided, however,
that such action shall not, as evidenced by an Opinion of Counsel, (i) adversely
affect in any material respect the interests of any Noteholder or the Enhancer
or (ii) cause the Issuer to be subject to an entity level tax.
Section 9.02 Supplemental Indentures With Consent of Noteholders. The Issuer and
the Indenture Trustee, when authorized by an Issuer Request, may, with prior
notice to the Rating Agencies and with the consent of the Enhancer and with the
consent of the Noteholders of not less than a majority of the Voting Rights of
each Class of Notes affected thereby, by Act (as defined in Section 10.03
hereof) of such Noteholders delivered to the Issuer and the Indenture Trustee,
enter into an indenture or indentures supplemental hereto for the purpose of
adding any provisions to, or changing in any manner or eliminating any of the
provisions of, this Indenture or of modifying in any manner the rights of the
Noteholders under this Indenture; provided, however, that no such supplemental
indenture shall, without the consent of the Noteholder of each Note affected
thereby:
(a) change the date of payment of any installment of principal of or interest on
any Note, or reduce the principal amount thereof or the Note Rate thereon,
change the provisions of this Indenture relating to the application of
collections on, or the proceeds of the sale of, the Trust Estate to payment of
principal of or interest on the Notes, or change any place of payment where, or
the coin or currency in which, any Note or the interest thereon is payable, or
impair the right to institute suit for the enforcement of the provisions of this
Indenture requiring the application of funds available therefor, as provided in
Article V, to the payment of any such amount due on the Notes on or after the
respective due dates thereof;
(b) reduce the percentage of Voting Rights of any Class of the Notes, the
consent of the Noteholders of which is required for any such supplemental
indenture, or the consent of the Noteholders of which is required for any waiver
of compliance with certain provisions of this Indenture or certain defaults
hereunder and their consequences provided for in this Indenture;
(c) modify or alter the provisions of the proviso to the definition of the term
"Outstanding" or modify or alter the exception in the definition of the term
"Noteholder";
(d) reduce the percentage of Voting Rights of the Notes required to direct the
Indenture Trustee to direct the Issuer to sell or liquidate the Trust Estate
pursuant to Section 5.04;
(e) modify any provision of this Section 9.02 except to increase any percentage
specified herein or to provide that certain additional provisions of this
Indenture or the other Basic Documents cannot be modified or waived without the
consent of the Noteholder of each Note affected thereby;
(f) modify any of the provisions of this Indenture in such manner as to affect
the calculation of the amount of any payment of interest or principal due on any
Note on any Payment Date (including the calculation of any of the individual
components of such calculation); or
(g) permit the creation of any lien ranking prior to or on a parity with the
lien of this Indenture with respect to any part of the Trust Estate or, except
as otherwise permitted or contemplated herein, terminate the lien of this
Indenture on any property at any time subject hereto or deprive the Noteholder
of any Note of the security provided by the lien of this Indenture; and provided
further, that such action shall not, as evidenced by an Opinion of Counsel,
cause the Issuer to be subject to an entity level tax or cause any Adverse REMIC
Event.
The Indenture Trustee may in its discretion determine whether or not any
Notes would be affected by any supplemental indenture and any such determination
shall be conclusive upon the Noteholders of all Notes, whether theretofore or
thereafter authenticated and delivered hereunder. The Indenture Trustee shall
not be liable for any such determination made in good faith.
It shall not be necessary for any Act (as defined in Section 10.03
hereof) of Noteholders under this Section 9.02 to approve the particular form of
any proposed supplemental indenture, but it shall be sufficient if such Act
shall approve the substance thereof.
Promptly after the execution by the Issuer and the Indenture Trustee of
any supplemental indenture pursuant to this Section 9.02, the Indenture Trustee
shall mail to the Noteholders of the Notes to which such amendment or
supplemental indenture relates a notice setting forth in general terms the
substance of such supplemental indenture. Any failure of the Indenture Trustee
to mail such notice, or any defect therein, shall not, however, in any way
impair or affect the validity of any such supplemental indenture.
Section 9.03 Execution of Supplemental Indentures. In executing, or permitting
the additional trusts created by, any supplemental indenture permitted by this
Article IX or the modification thereby of the trusts created by this Indenture,
the Indenture Trustee shall be entitled to receive and, subject to Sections 6.01
and 6.02, shall be fully protected in relying upon, an Opinion of Counsel
stating that the execution of such supplemental indenture is authorized or
permitted by this Indenture. The Indenture Trustee may, but shall not be
obligated to, enter into any such supplemental indenture that affects the
Indenture Trustee's own rights, duties, liabilities or immunities under this
Indenture or otherwise.
Section 9.04 Effect of Supplemental Indenture. Upon the execution of any
supplemental indenture pursuant to the provisions hereof, this Indenture shall
be and shall be deemed to be modified and amended in accordance therewith with
respect to the Notes affected thereby, and the respective rights, limitations of
rights, obligations, duties, liabilities and immunities under this Indenture of
the Indenture Trustee, the Issuer and the Noteholders shall thereafter be
determined, exercised and enforced hereunder subject in all respects to such
modifications and amendments, and all the terms and conditions of any such
supplemental indenture shall be and be deemed to be part of the terms and
conditions of this Indenture for any and all purposes.
Section 9.05 Conformity with Trust Indenture Act. Every amendment of this
Indenture and every supplemental indenture executed pursuant to this Article IX
shall conform to the requirements of TIA as in effect at the time of such
amendment or supplement so long as this Indenture shall then be qualified under
TIA.
Section 9.06 Reference in Notes to Supplemental Indentures. Notes authenticated
and delivered after the execution of any supplemental indenture pursuant to this
Article IX may, and if required by the Indenture Trustee, shall, bear a notation
in form approved by the Indenture Trustee as to any matter provided for in such
supplemental indenture. If the Issuer or the Indenture Trustee shall so
determine, new Notes so modified as to conform, in the opinion of the Indenture
Trustee and the Issuer, to any such supplemental indenture may be prepared and
executed by the Issuer and authenticated and delivered by the Indenture Trustee
in exchange for Outstanding Notes.
ARTICLE X
Miscellaneous
Section 10.01 Compliance Certificates and Opinions, etc.
(a) Upon any application or request by the Issuer to the Indenture Trustee to
take any action under any provision of this Indenture, the Issuer shall furnish
to the Indenture Trustee and the Enhancer (i) an Officer's Certificate stating
that all conditions precedent, if any, provided for in this Indenture relating
to the proposed action have been complied with and (ii) an Opinion of Counsel
stating that in the opinion of such counsel all such conditions precedent, if
any, have been complied with, except that, in the case of any such application
or request as to which the furnishing of such documents is specifically required
by any provision of this Indenture, no additional certificate or opinion need be
furnished.
Every certificate or opinion with respect to compliance with a condition
or covenant provided for in this Indenture shall include:
(i) a statement that each signatory of such certificate or opinion has read
or has caused to be read such covenant or condition and the definitions
herein relating thereto;
(ii) a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in such
certificate or opinion are based;
(iii) a statement that, in the opinion of each such signatory, such signatory
has made such examination or investigation as is necessary to enable
such signatory to express an informed opinion as to whether or not such
covenant or condition has been complied with;
(iv) a statement as to whether, in the opinion of each such signatory, such
condition or covenant has been complied with; and
(v) if the signer of such certificate or opinion is required to be
Independent, the statement required by the definition of the term
"Independent".
(b) (i) Prior to the deposit of any Collateral or other property or
securities with the Indenture Trustee that is to be made the basis for
the release of any property or securities subject to the lien of this
Indenture, the Issuer shall, in addition to any obligation imposed in
Section 10.01(a) or elsewhere in this Indenture, furnish to the
Indenture Trustee an Officer's Certificate certifying or stating the
opinion of each person signing such certificate as to the fair value
(within 90 days of such deposit) to the Issuer of the Collateral or
other property or securities to be so deposited.
(ii) Whenever the Issuer is required to furnish to the Indenture Trustee an
Officer's Certificate certifying or stating the opinion of any signer
thereof as to the matters described in clause (i) above, the Issuer shall
also deliver to the Indenture Trustee an Independent Certificate as to the
same matters, if the fair value to the Issuer of the securities to be so
deposited and of all other such securities made the basis of any such
withdrawal or release since the commencement of the then-current fiscal
year of the Issuer, as set forth in the certificates delivered pursuant to
clause (i) above and this clause (ii), is 10% or more of the aggregate Note
Balance of the Notes, but such a certificate need not be furnished with
respect to any securities so deposited, if the fair value thereof to the
Issuer as set forth in the related Officer's Certificate is less than
$25,000 or less than one percent of the aggregate Note Balance of the
Notes.
(iii) Whenever any property or securities are to be released from the lien of
this Indenture, the Issuer shall furnish to the Indenture Trustee an
Officer's Certificate certifying or stating the opinion of each person
signing such certificate as to the fair value (within 90 days of such
release) of the property or securities proposed to be released and
stating that in the opinion of such person the proposed release will not
impair the security under this Indenture in contravention of the
provisions hereof.
(iv) Whenever the Issuer is required to furnish to the Indenture Trustee an
Officer's Certificate certifying or stating the opinion of any signer
thereof as to the matters described in clause (iii) above, the Issuer shall
also furnish to the Indenture Trustee an Independent Certificate as to the
same matters if the fair value of the property or securities and of all
other property, other than property as contemplated by clause (v) below or
securities released from the lien of this Indenture since the commencement
of the then-current calendar year, as set forth in the certificates
required by clause (iii) above and this clause (iv), equals 10% or more of
the aggregate Note Balance of the Notes, but such certificate need not be
furnished in the case of any release of property or securities if the fair
value thereof as set forth in the related Officer's Certificate is less
than $25,000 or less than one percent of the aggregate Note Balance of the
Notes.
(v) Notwithstanding the foregoing, this Section 10.01(b) shall not apply to (A)
collection upon, sales or other dispositions of the Mortgage Loans as and
to the extent permitted or required by the Basic Documents or (B) the
making of cash payments out of the Note Payment Account as and to the
extent permitted or required by the Basic Documents, so long as the Issuer
shall deliver to the Indenture Trustee every six months, commencing
December 31, 2005, an Officer's Certificate of the Issuer stating that all
the dispositions of Collateral described in clauses (A) or (B) above that
occurred during the preceding six calendar months (or such longer period,
in the case of the first such Officer's Certificate) were permitted or
required by the Basic Documents and that the proceeds thereof were applied
in accordance with the Basic Documents.
Section 10.02 Form of Documents Delivered to Indenture Trustee.
In any case where several matters are required to be certified by, or
covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.
Any certificate or opinion of an Authorized Officer of the Issuer may be
based, insofar as it relates to legal matters, upon a certificate or opinion of,
or representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which his certificate or opinion is based are
erroneous. Any such certificate of an Authorized Officer or Opinion of Counsel
may be based, insofar as it relates to factual matters, upon a certificate or
opinion of, or representations by, an officer or officers of either Seller or
the Issuer, stating that the information with respect to such factual matters is
in the possession of either Seller or the Issuer, unless such counsel knows, or
in the exercise of reasonable care should know, that the certificate or opinion
or representations with respect to such matters are erroneous.
Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.
Whenever in this Indenture, in connection with any application or
certificate or report to the Indenture Trustee, it is provided that the Issuer
shall deliver any document as a condition of the granting of such application,
or as evidence of the Issuer's compliance with any term hereof, it is intended
that the truth and accuracy, at the time of the granting of such application or
at the effective date of such certificate or report (as the case may be), of the
facts and opinions stated in such document shall in such case be conditions
precedent to the right of the Issuer to have such application granted or to the
sufficiency of such certificate or report. The foregoing shall not, however, be
construed to affect the Indenture Trustee's right to rely upon the truth and
accuracy of any statement or opinion contained in any such document as provided
in Article VI.
Section 10.03 Acts of Noteholders.
(a) Any request, demand, authorization, direction, notice, consent, waiver or
other action provided by this Indenture to be given or taken by Noteholders may
be embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Noteholders in person or by agents duly appointed in
writing; and except as herein otherwise expressly provided such action shall
become effective when such instrument or instruments are delivered to the
Indenture Trustee, and, where it is hereby expressly required, to the Issuer.
Such instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the "Act" of the Noteholders
signing such instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agent shall be sufficient for any
purpose of this Indenture and (subject to Section 6.01) conclusive in favor of
the Indenture Trustee and the Issuer, if made in the manner provided in this
Section 10.03.
(b) The fact and date of the execution by any person of any such instrument or
writing may be proved in any manner that the Indenture Trustee deems sufficient.
(c) The ownership of Notes shall be proved by the Note Register.
(d) Any request, demand, authorization, direction, notice, consent, waiver or
other action by the Noteholder of any Note shall bind the Noteholder of every
Note issued upon the registration thereof or in exchange therefor or in lieu
thereof, in respect of anything done, omitted or suffered to be done by the
Indenture Trustee or the Issuer in reliance thereon, whether or not notation of
such action is made upon such Note.
Section 10.04 Notices, etc., to Indenture Trustee, Issuer, Enhancer and Rating
Agencies. Any request, demand, authorization, direction, notice, consent, waiver
or Act of Noteholders or other documents provided or permitted by this Indenture
shall be in writing and if such request, demand, authorization, direction,
notice, consent, waiver or Act of Noteholders is to be made upon, given or
furnished to or filed with:
(a) the Indenture Trustee by any Noteholder or by the Issuer shall be sufficient
for every purpose hereunder if made, given, furnished or filed in writing to or
with the Indenture Trustee at its Corporate Trust Office. The Indenture Trustee
shall promptly transmit any notice received by it from the Noteholders to the
Issuer;
(b) the Issuer by the Indenture Trustee or by any Noteholder shall be sufficient
for every purpose hereunder if in writing and mailed first-class, postage
prepaid to the Issuer addressed to: GMACM Home Equity Loan Trust 2004-HE5, in
care of the Owner Trustee, or at any other address previously furnished in
writing to the Indenture Trustee by the Issuer. The Issuer shall promptly
transmit any notice received by it from the Noteholders to the Indenture
Trustee; or
(c) (c) the Enhancer by the Issuer, the Indenture Trustee or by any Noteholders
shall be sufficient for every purpose hereunder to in writing and mailed,
first-class postage pre-paid, or personally delivered or telecopied to:
Financial Guaranty Insurance Company, 000 Xxxx Xxxxxx, 0xx Xxxxx, Xxx Xxxx, Xxx
Xxxx 00000, Attention: Research and Risk Management (GMACM Home Loan Trust
2004-HE5), telecopier number (000) 000 0000. The Enhancer shall promptly
transmit any notice received by it from the Issuer, the Indenture Trustee or the
Noteholders to the Issuer or Indenture Trustee, as the case may be
Notices required to be given to the Rating Agencies by the Issuer, the
Indenture Trustee or the Owner Trustee shall be in writing, personally delivered
or mailed by certified mail, return receipt requested, to (i) in the case of
Moody's, at the following address: Xxxxx'x Investors Service, Inc., ABS
Monitoring Department, 00 Xxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, and (ii) in
the case of Standard & Poor's, at the following address: Standard & Poor's, 00
Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: Asset Backed Surveillance
Department; or, as to each of the foregoing Persons, at such other address as
shall be designated by written notice to the other foregoing Persons.
Section 10.05 Notices to Noteholders; Waiver. Where this Indenture provides for
notice to Noteholders of any event, such notice shall be sufficiently given
(unless otherwise herein expressly provided) if in writing and mailed,
first-class, postage prepaid to each Noteholder affected by such event, at such
Person's address as it appears on the Note Register, not later than the latest
date, and not earlier than the earliest date, prescribed for the giving of such
notice. In any case where notice to Noteholders is given by mail, neither the
failure to mail such notice nor any defect in any notice so mailed to any
particular Noteholder shall affect the sufficiency of such notice with respect
to other Noteholders, and any notice that is mailed in the manner herein
provided shall conclusively be presumed to have been duly given regardless of
whether such notice is in fact actually received.
Where this Indenture provides for notice in any manner, such notice may
be waived in writing by any Person entitled to receive such notice, either
before or after the event, and such waiver shall be the equivalent of such
notice. Waivers of notice by Noteholders shall be filed with the Indenture
Trustee, but such filing shall not be a condition precedent to the validity of
any action taken in reliance upon such a waiver.
In case, by reason of the suspension of regular mail service as a result
of a strike, work stoppage or similar activity, it shall be impractical to mail
notice of any event to Noteholders when such notice is required to be given
pursuant to any provision of this Indenture, then any manner of giving such
notice as shall be satisfactory to the Indenture Trustee shall be deemed to be a
sufficient giving of such notice.
Where this Indenture provides for notice to the Rating Agencies, failure
to give such notice shall not affect any other rights or obligations created
hereunder, and shall not under any circumstance constitute an Event of Default.
Section 10.06 Alternate Payment and Notice Provisions. Notwithstanding any
provision of this Indenture or any of the Notes to the contrary, the Issuer may
enter into any agreement with any Noteholder providing for a method of payment,
or notice by the Indenture Trustee to such Noteholder, that is different from
the methods provided for in this Indenture for such payments or notices. The
Issuer shall furnish to the Indenture Trustee a copy of each such agreement and
the Indenture Trustee shall cause payments to be made and notices to be given in
accordance with such agreements.
Section 10.07 Conflict with Trust Indenture Act. If any provision hereof limits,
qualifies or conflicts with another provision hereof that is required to be
included in this Indenture by any of the provisions of TIA, such required
provision shall control.
The provisions of TIA xx.xx. 310 through 317 that impose duties on any
Person (including the provisions automatically deemed included herein unless
expressly excluded by this Indenture) are a part of and govern this Indenture,
whether or not physically contained herein.
Section 10.08 Effect of Headings. The Article and Section headings herein are
for convenience only and shall not affect the construction hereof.
Section 10.09 Successors and Assigns. All covenants and agreements in this
Indenture and the Notes by the Issuer shall bind its successors and assigns,
whether so expressed or not. All agreements of the Indenture Trustee in this
Indenture shall bind its successors, co-trustees and agents.
Section 10.10 Severability. In case any provision in this Indenture or in the
Notes shall be held invalid, illegal or unenforceable, the validity, legality,
and enforceability of the remaining provisions hereof shall not in any way be
affected or impaired thereby.
Section 10.11 Benefits of Indenture. Nothing in this Indenture or in the Notes,
express or implied, shall give to any Person, other than the parties hereto and
their successors hereunder, and the Noteholders, the Enhancer and any other
party secured hereunder, and any other Person with an ownership interest in any
part of the Trust Estate, any benefit or any legal or equitable right, remedy or
claim under this Indenture. The Enhancer shall be a third party beneficiary of
this Agreement.
Section 10.12 Legal Holidays. In any case where the date on which any payment is
due shall not be a Business Day, then (notwithstanding any other provision of
the Notes or this Indenture) payment need not be made on such date, but may be
made on the next succeeding Business Day with the same force and effect as if
made on the date on which nominally due, and no interest shall accrue for the
period from and after any such nominal date.
Section 10.13 GOVERNING LAW. THIS INDENTURE SHALL BE CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICTS OF
LAW PROVISIONS (EXCEPT SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATION LAW),
AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.
Section 10.14 Counterparts. This Indenture may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but
all such counterparts shall together constitute but one and the same instrument.
Section 10.15 Recording of Indenture. If this Indenture is subject to recording
in any appropriate public recording offices, such recording is to be effected by
the Issuer and at its expense accompanied by an Opinion of Counsel (which
counsel shall be reasonably acceptable to the Indenture Trustee) to the effect
that such recording is necessary either for the protection of the Noteholders or
any other Person secured hereunder or for the enforcement of any right or remedy
granted to the Indenture Trustee under this Indenture.
Section 10.16 Issuer Obligation. No recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or
the Indenture Trustee on the Notes or under this Indenture or any certificate or
other writing delivered in connection herewith or therewith, against (i) the
Indenture Trustee or the Owner Trustee in its individual capacity, (ii) any
owner of a beneficial interest in the Issuer or (iii) any partner, owner,
beneficiary, agent, officer, director, employee or agent of the Indenture
Trustee or the Owner Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee or
of any successor or assign of the Indenture Trustee or the Owner Trustee in its
individual capacity, except as any such Person may have expressly agreed (it
being understood that the Indenture Trustee and the Owner Trustee have no such
obligations in their respective individual capacities), and except that any such
partner, owner or beneficiary shall be fully liable, to the extent provided by
applicable law, for any unpaid consideration for stock, unpaid capital
contribution or failure to pay any installment or call owing to such entity. For
all purposes of this Indenture, in the performance of any duties or obligations
of the Issuer hereunder, the Owner Trustee shall be subject to, and entitled to
the benefits of, the terms and provisions of Articles VI, VII and VIII of the
Trust Agreement.
Section 10.17 No Petition. The Indenture Trustee, by entering into this
Indenture, and each Noteholder, by its acceptance of a Note, hereby covenant and
agree that they will not at any time institute against the Depositor or the
Issuer, or join in any institution against the Depositor or the Issuer of, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
or other proceedings under any United States federal or state bankruptcy or
similar law in connection with any obligations relating to the Notes, this
Indenture or any of the other Basic Documents.
Section 10.18 Inspection. The Issuer agrees that, on reasonable prior notice, it
shall permit any representative of the Indenture Trustee, during the Issuer's
normal business hours, to examine all the books of account, records, reports and
other papers of the Issuer, to make copies and extracts therefrom, to cause such
books to be audited by Independent certified public accountants, and to discuss
the Issuer's affairs, finances and accounts with the Issuer's officers,
employees, and Independent certified public accountants, all at such reasonable
times and as often as may be reasonably requested. The Indenture Trustee shall
and shall cause its representatives to hold in confidence all such information
except to the extent disclosure may be required by law (and all reasonable
applications for confidential treatment are unavailing) and except to the extent
that the Indenture Trustee may reasonably determine that such disclosure is
consistent with its obligations hereunder.
ARTICLE XI
REMIC Provisions
Section 11.01 REMIC Administration.
(a) The REMIC Administrator shall make an election to treat the Trust Estate, as
set forth in Section 2.06 of the Trust Agreement, as three REMICs under the Code
and, if necessary, under applicable state law, in accordance with Section 2.06
of the Trust Agreement. Such election will be made on Form 1066 or other
appropriate federal tax or information return (including Form 8811) or any
appropriate state return for the taxable year ending on the last day of the
calendar year in which the Securities are issued. For the purposes of the REMIC
elections in respect of the Trust Estate, Securities and interests to be
designated as the "regular interests" and the sole class of "residual interests"
in each REMIC will be set forth in Section 11.03. The REMIC Administrator and
the Indenture Trustee shall not permit the creation of any "interests" (within
the meaning of Section 860G of the Code) in each REMIC elected in respect of the
Trust Fund other than the "regular interests" and "residual interests" so
designated. The REMIC Administrator shall prepare and file or distribute such
forms as may be required under the Code and related Treasury Regulations with
respect to any payments of Interest Carry Forward Amounts to the holders of the
Class A-IO Notes consistent with their treatment as payments pursuant to an
interest rate cap agreement for federal tax purposes. The REMIC Administrator
may assume that such interest rate cap contract has a value of zero.
(b) The Closing Date is hereby designated as the "startup day" of each of REMIC
I, REMIC II and REMIC III as designated in Section 11.03 below, the Trust Estate
within the meaning of Section 860G(a)(9) of the Code.
(c) GMAC Mortgage Corporation shall hold a Class R Certificate representing at
least a 0.01% Percentage Interest in each Class of the Class R Certificates and
shall be designated as "the tax matters person" with respect to each REMIC in
the manner provided under Treasury regulations ss.1.860F-4(d) and Treasury
regulations ss.301.6231(a)(7)-1. The REMIC Administrator, on behalf of the Tax
Matters Partner, shall (i) act on behalf of each REMIC in relation to any tax
matter or controversy involving the Trust Estate and (ii) represent the Trust
Estate in any administrative or judicial proceeding relating to an examination
or audit by any governmental taxing authority with respect thereto. The legal
expenses, including without limitation attorneys' or accountants' fees, and
costs of any such proceeding and any liability resulting therefrom shall be
expenses of the Trust Estate and the REMIC Administrator shall be entitled to
reimbursement therefor out of amounts attributable to the Mortgage Loans on
deposit in the Custodial Account unless such legal expenses and costs are
incurred by reason of the REMIC Administrator's willful misfeasance, bad faith
or gross negligence.
(d) The REMIC Administrator shall prepare or cause to be prepared all of the Tax
Returns that it determines are required with respect to each REMIC created
hereunder and, if approval therefore is received from the applicable District
Director of the Internal Revenue Service, shall sign and file such returns in a
timely manner and, otherwise, shall, shall deliver such Tax Returns in a timely
manner to the Owner Trustee, if the Owner Trustee is required to sign such
returns in accordance with Section 5.03 of the Trust Agreement, and shall sign
(if the Owner Trustee is not so required) and file such Tax Returns in a timely
manner. The expenses of preparing such returns shall be borne by the REMIC
Administrator without any right of reimbursement therefor. The REMIC
Administrator agrees to indemnify and hold harmless the Owner Trustee with
respect to any tax or liability arising from the Owner Trustee's signing of Tax
Returns that contain errors or omissions. The Indenture Trustee and Servicer
shall promptly provide the REMIC Administrator with such information as the
REMIC Administrator may from time to time request for the purpose of enabling
the REMIC Administrator to prepare Tax Returns.
(e) The REMIC Administrator shall provide (i) to any Transferor of a Class R
Certificate such information as is necessary for the application of any tax
relating to the transfer of a Class R Certificate to any Person who is not a
Permitted Transferee, (ii) to the Indenture Trustee, and the Indenture Trustee
shall forward to the Noteholders and the Certificateholders, such information or
reports as are required by the Code or the REMIC Provisions including reports
relating to interest, original issue discount and market discount or premium
(using the Prepayment Assumption) and (iii) to the Internal Revenue Service the
name, title, address and telephone number of the person who will serve as the
representative of each REMIC.
(f) The Servicer and the REMIC Administrator shall take such actions and shall
cause each REMIC created hereunder to take such actions as are reasonably within
the Servicer's or the REMIC Administrator's control and the scope of its duties
more specifically set forth herein as shall be necessary or desirable to
maintain the status of each REMIC as a REMIC under the REMIC Provisions (and the
Indenture Trustee shall assist the Servicer and the REMIC Administrator, to the
extent reasonably requested by the Servicer and the REMIC Administrator to do
so). The Servicer and the REMIC Administrator shall not knowingly or
intentionally take any action, cause the Trust Estate to take any action or fail
to take (or fail to cause to be taken) any action reasonably within their
respective control that, under the REMIC Provisions, if taken or not taken, as
the case may be, could (i) endanger the status of any portion of any of the
REMICs as a REMIC or (ii) result in the imposition of a tax upon any of the
REMICs (including but not limited to the tax on prohibited transactions as
defined in Section 860F(a)(2) of the Code and the tax on contributions to a
REMIC set forth in Section 860G(d) of the Code) (either such event, in the
absence of an Opinion of Counsel or the indemnification referred to in this
sentence, an "Adverse REMIC Event") unless the Servicer or the REMIC
Administrator, as applicable, has received an Opinion of Counsel (at the expense
of the party seeking to take such action or, if such party fails to pay such
expense, and the Servicer or the REMIC Administrator, as applicable, determines
that taking such action is in the best interest of the Trust Estate and the
Noteholders and the Certificateholders, at the expense of the Trust Estate, but
in no event at the expense of the Servicer, the REMIC Administrator, the Owner
Trustee or the Indenture Trustee) to the effect that the contemplated action
will not, with respect to each REMIC created hereunder, endanger such status or,
unless the Servicer, the REMIC Administrator or both, as applicable, determine
in its or their sole discretion to indemnify the Trust Estate against the
imposition of such a tax, result in the imposition of such a tax. Wherever in
this Agreement a contemplated action may not be taken because the timing of such
action might result in the imposition of a tax on the Trust Estate, or may only
be taken pursuant to an Opinion of Counsel that such action would not impose a
tax on the Trust Estate, such action may nonetheless be taken provided that the
indemnity given in the preceding sentence with respect to any taxes that might
be imposed on the Trust Estate has been given and that all other preconditions
to the taking of such action have been satisfied. The Indenture Trustee shall
not take or fail to take any action (whether or not authorized hereunder) as to
which the Servicer or the REMIC Administrator, as applicable, has advised it in
writing that it has received an Opinion of Counsel to the effect that an Adverse
REMIC Event could occur with respect to such action. In addition, prior to
taking any action with respect to any of the REMICs created hereunder or any
related assets thereof, or causing any of the REMICs to take any action, which
is not expressly permitted under the terms of this Agreement, the Indenture
Trustee will consult with the Servicer or the REMIC Administrator, as
applicable, or its designee, in writing, with respect to whether such action
could cause an Adverse REMIC Event to occur with respect to any of the REMICs,
and the Indenture Trustee shall not take any such action or cause either REMIC
to take any such action as to which the Servicer or the REMIC Administrator, as
applicable, has advised it in writing that an Adverse REMIC Event could occur.
The Servicer or the REMIC Administrator, as applicable, may consult with counsel
to make such written advice, and the cost of same shall be borne by the party
seeking to take the action not expressly permitted by this Agreement, but in no
event at the expense of the Servicer or the REMIC Administrator. At all times as
may be required by the Code, the Servicer will to the extent within its control
and the scope of its duties more specifically set forth herein, maintain
substantially all of the assets of each REMIC created hereunder as "qualified
mortgages" as defined in Section 860G(a)(3) of the Code and "permitted
investments" as defined in Section 860G(a)(5) of the Code.
(g) In the event that any tax is imposed on "prohibited transactions" of any of
the REMICs created hereunder as defined in Section 860F(a)(2) of the Code, on
"net income from foreclosure property" of any of the REMICs as defined in
Section 860G(c) of the Code, on any contributions to any of the REMICs after the
Startup Day therefor pursuant to Section 860G(d) of the Code, or any other tax
is imposed by the Code or any applicable provisions of state or local tax laws,
such tax shall be charged (i) to the Servicer, if such tax arises out of or
results from a breach by the Servicer of any of its obligations under this
Agreement or the Servicer has in its sole discretion determined to indemnify the
Trust Estate against such tax, (ii) to the Indenture Trustee, if such tax arises
out of or results from a breach by the Trustee of any of its obligations under
this Article XI, or (iii) otherwise against amounts on deposit in the Custodial
Account and on the Payment Date(s) following such reimbursement the aggregate of
such taxes shall be allocated in reduction of the accrued interest due on each
Class entitled thereto on a pro rata basis.
(h) The Indenture Trustee and the Servicer shall, for federal income tax
purposes, maintain books and records with respect to each REMIC created
hereunder on a calendar year and on an accrual basis or as otherwise may be
required by the REMIC Provisions.
(i) Following the Startup Day, neither the Servicer nor the Indenture Trustee
shall accept any contributions of assets to any of the REMICs created hereunder
unless (subject to Section 11.01(f)) the Servicer and the Indenture Trustee
shall have received an Opinion of Counsel (at the expense of the party seeking
to make such contribution) to the effect that the inclusion of such assets in
such REMIC will not cause any of the REMICs to fail to qualify as a REMIC at any
time that any Notes or Certificates are outstanding or subject any of the REMICs
to any tax under the REMIC Provisions or other applicable provisions of federal,
state and local law or ordinances.
(j) Neither the Servicer nor the Trustee shall (subject to Section 11.01(f))
enter into any arrangement by which any of the REMICs created hereunder will
receive a fee or other compensation for services nor permit any of the REMICs to
receive any income from assets other than "qualified mortgages" as defined in
Section 860G(a)(3) of the Code or "permitted investments" as defined in Section
860G(a)(5) of the Code.
(k) Solely for the purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
Regulations, the "latest possible maturity date" by which the Certificate
Principal Balance of each Class of Notes and Certificates representing a regular
interest in the applicable REMIC is the Final Payment Date.
(l) Within 30 days after the Closing Date, the REMIC Administrator shall prepare
and file with the Internal Revenue Service Form 8811, "Information Return for
Real Estate Mortgage Investment Conduits (REMIC) and Issuers of Collateralized
Debt Obligations" for each REMIC created hereunder.
(m) Neither the Indenture Trustee nor the Servicer shall sell, dispose of or
substitute for any of the Mortgage Loans (except in connection with (i) the
default, imminent default or foreclosure of a Mortgage Loan, including but not
limited to, the acquisition or sale of a Mortgaged Property acquired by deed in
lieu of foreclosure, (ii) the bankruptcy of any of the REMICs created hereunder,
(iii) the termination of the applicable REMIC pursuant to Section 8.02 of the
Trust Agreement or (iv) a purchase of Mortgage Loans pursuant to the Purchase
Agreement) nor acquire any assets for any of the REMICs, nor sell or dispose of
any investments in the Custodial Account or the Payment Account for gain nor
accept any contributions to any of the REMICs after the Closing Date unless it
has received an Opinion of Counsel that such sale, disposition, substitution or
acquisition will not (a) affect adversely the status of any of the REMICs as a
REMIC or (b) unless the Servicer has determined in its sole discretion to
indemnify the Trust Estate against such tax, cause any REMIC to be subject to a
tax on "prohibited transactions" or "contributions" pursuant to the REMIC
Provisions.
(n) The Trustee will apply for an employer identification number from the
Internal Revenue Service on a Form SS-4 or any other acceptable method for all
tax entities.
Section 11.02 Servicer, REMIC Administrator and Indenture Trustee
Indemnification.
The Indenture Trustee agrees to indemnify the Trust Estate, the
REMIC Administrator and the Servicer for any taxes and costs including, without
limitation, any reasonable attorneys fees imposed on or incurred by the Trust
Estate or the Servicer, as a result of a breach of the Indenture Trustee's
covenants set forth in Article VIII or this Article XI.
The REMIC Administrator agrees to indemnify the Trust Estate, the
Servicer, the Depositor, the Owner Trustee and the Indenture Trustee for any
taxes and costs (including, without limitation, any reasonable attorneys' fees)
imposed on or incurred by the Trust Estate, the Depositor, GMACM Mortgage
Corporation, the Servicer, the Owner Trustee or the Indenture Trustee, as a
result of a breach of the REMIC Administrator's covenants set forth in this
Article XI with respect to compliance with the REMIC Provisions, including
without limitation, any penalties arising from the Owner Trustee's execution of
Tax Returns prepared by the REMIC Administrator that contain errors or
omissions; provided, however, that such liability will not be imposed to the
extent such breach is a result of an error or omission in information provided
to the REMIC Administrator by the Servicer in which case Section 11.02(c) will
apply.
The Servicer agrees to indemnify the Trust Estate, the REMIC
Administrator, the Owner Trustee and the Indenture Trustee for any taxes and
costs (including, without limitation, any reasonable attorneys' fees) imposed on
or incurred by the Trust Estate, the REMIC Administrator, the Owner Trustee or
the Indenture Trustee, as a result of a breach of the Servicer's covenants set
forth in this Article XI or in Article III with respect to compliance with the
REMIC Provisions, including without limitation, any penalties arising from the
Trustee's execution of Tax Returns prepared by the Servicer that contain errors
or omissions.
Section 11.03 Designation of REMIC(s).
The REMIC Administrator will make an election to treat the entire
segregated pool of assets described in the definition of Trust Estate (but
excluding the Pre-Funding Account and the Capitalized Interest Account), and
subject to this Agreement (including the Mortgage Loans, as set forth in Section
2.06 of the Trust Agreement ) as a REMIC ("REMIC I") and will make an election
to treat the pool of assets comprised of the REMIC I Regular Interests as a
REMIC ("REMIC II") for federal income tax purposes.
The REMIC I Regular Interests will be "regular interests" in REMIC I and
the Class R-I Certificates will be the sole class of "residual interests" in
REMIC I for purposes of the REMIC Provisions under the federal income tax law.
The REMIC II Regular Interests will be "regular interests" in REMIC II
and the Class R-II Certificates will be the sole class of "residual interests"
in REMIC II for purposes of the REMIC Provisions under the federal income tax
law.
The REMIC III Regular Interests will be "regular interests" in REMIC III
and the Class R-III Certificates will be the sole class of "residual interests"
therein for purposes of the REMIC Provisions (as defined herein) under federal
income tax law.
[Signature Page Follows]
IN WITNESS WHEREOF, the Issuer and the Indenture Trustee have caused
their names to be signed hereto by their respective officers thereunto duly
authorized, all as of the day and year first above written.
GMACM HOME EQUITY LOAN TRUST 2004-HE5, as Issuer
By: WILMINGTON TRUST COMPANY, not in its
individual capacity but solely as Owner
Trustee
By:
Name:
Title:
XXXXX FARGO BANK, N.A., as Indenture Trustee
By:
Name:
Title:
XXXXX FARGO BANK, N.A hereby accepts the appointment as Paying Agent pursuant to
Section 3.03 hereof and as Note Registrar pursuant to Section 4.02 hereof.
By:
Name:
Title:
Signatures and Seals
STATE OF _______________ )
) ss.:
COUNTY OF _____________ )
On this ___ day of November, 2004, before me personally appeared
____________, to me known, who being by me duly sworn, did depose and say, that
he/she resides at _____________, that he/she is the ____________ of Wilmington
Trust Company, the Owner Trustee, one of the corporations described in and which
executed the above instrument; that he/she knows the seal of said corporation;
that the seal affixed to said instrument is such corporate seal; that it was so
affixed by order of the Board of Directors of said corporation; and that he/she
signed his/her name thereto by like order.
Notary Public
Acknowledgements
STATE OF _______________ )
) ss.:
COUNTY OF _____________ )
On this ___ day of November, 2004, before me personally appeared
__________, to me known, who being by me duly sworn, did depose and say, that
he/she resides at _____________; that he/she is the ___________ of Xxxxx Fargo
Bank, N.A. as Indenture Trustee, one of the corporations described in and which
executed the above instrument; that he/she knows the seal of said corporation;
that the seal affixed to said instrument is such corporate seal; that it was so
affixed by order of the Board of Directors of said corporation; and that he/she
signed his/her name thereto by like order.
Notary Public
NOTORIAL SEAL
EXHIBIT A-1
FORM OF CLASS A-1, CLASS X-0, XXXXX X-0, CLASS A-4, CLASS A-5 AND CLASS A-6 NOTE
UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS NOTE IS A "REGULAR INTEREST"
IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT" AS THOSE TERMS ARE DEFINED,
RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986
(THE "CODE").
THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE
LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.
THIS NOTE DOES NOT REPRESENT AN INTEREST IN OR OBLIGATION OF THE SELLERS, THE
DEPOSITOR, THE SERVICER, THE INDENTURE TRUSTEE, THE OWNER TRUSTEE OR GMAC
MORTGAGE GROUP, INC. OR ANY OF THEIR RESPECTIVE AFFILIATES, EXCEPT AS EXPRESSLY
PROVIDED IN THE INDENTURE OR THE OTHER BASIC DOCUMENTS.
THE HOLDER OF THIS NOTE IS DEEMED TO HAVE REPRESENTED THAT THE ACQUISITION OF
THIS NOTE BY THE HOLDER DOES NOT CONSTITUTE OR GIVE RISE TO A PROHIBITED
TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, FOR WHICH NO
STATUTORY, REGULATORY OR ADMINISTRATIVE EXEMPTION IS AVAILABLE.
GMACM Home Equity Loan-Backed Term Note, Class A-[__]
Registered
Initial Note Balance: $[ ]
No. A-[__]-__
Note Rate: [Variable] [____%]
CUSIP NO. [ ]
GMACM HOME EQUITY LOAN TRUST 2004-HE5
GMACM Home Equity Loan Trust 2004-HE5, a statutory trust duly organized
and existing under the laws of the State of Delaware (herein referred to as the
"Issuer"), for value received, hereby promises to pay to Cede & Co. or its
registered assigns, the principal sum of [_______________] Dollars
($[_______________]), payable on each Payment Date in an amount equal to the pro
rata portion allocable hereto (based on the Initial Note Balance specified above
and the Initial Note Balance of all A-[__] Notes) of the aggregate amount, if
any, payable from the Note Payment Account in respect of principal of the Class
A-[__] Notes (the "Notes") pursuant to Section 3.05 of the indenture dated as of
November 30, 2004 (the "Indenture"), between the Issuer and Xxxxx Fargo Bank,
N.A. as indenture trustee (the "Indenture Trustee"); provided, however, that the
entire unpaid principal amount of this Note shall be due and payable on the
Payment Date in September 2034, to the extent not previously paid on a prior
Payment Date. Capitalized terms used herein that are not otherwise defined shall
have the meanings ascribed thereto in Appendix A to the Indenture.
Interest on the Notes will be paid monthly on each Payment Date at the
Note Rate for the related Class of Notes for the Interest Period.
This Note is entitled to the benefits of an irrevocable and
unconditional financial guaranty insurance policy issued by Financial Guaranty
Insurance Company (the "Enhancer").
Principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. All payments made by the Issuer
with respect to this Note shall be applied first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.
Unless the certificate of authentication hereon has been executed by the
Indenture Trustee whose name appears below by manual signature, this Note shall
not be entitled to any benefit under the Indenture referred to herein, or be
valid or obligatory for any purpose.
This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its GMACM Home Equity Loan-Backed Term Notes, Series 2004-HE5 (the
"Series 2004-HE5 Notes"), all issued under the Indenture, to which Indenture and
all indentures supplemental thereto reference is hereby made for a statement of
the respective rights and obligations thereunder of the Issuer, the Indenture
Trustee and the Noteholders of the Series 2004-HE5 Notes. The Series 2004-HE5
Notes are subject to all terms of the Indenture.
The Series 2004-HE5 Notes are and will be equally and ratably secured by
the collateral pledged as security therefor as provided in the Indenture.
Principal of and interest on this Note will be payable on each Payment
Date, commencing on December 27, 2004, as described in the Indenture. "Payment
Date" means the twenty-fifth day of each month, or, if any such date is not a
Business Day, then the next succeeding Business Day.
The entire unpaid principal amount of this Note shall be due and payable
in full on the Payment Date in September 2034 pursuant to the Indenture, to the
extent not previously paid on a prior Payment Date. Notwithstanding the
foregoing, if an Event of Default shall have occurred and be continuing, then
the Indenture Trustee, the Enhancer or the Noteholders of Notes representing not
less than a majority of the aggregate Voting Rights of the Notes, with the
consent of the Enhancer, may declare the Notes to be immediately due and payable
in the manner provided in Section 5.02 of the Indenture. All principal payments
on the Notes shall be made pro rata to the Noteholders of Notes entitled
thereto.
Any installment of interest or principal, if any, payable on any Note
that is punctually paid or duly provided for by the Issuer on the applicable
Payment Date shall be paid to the related Noteholder on the preceding Record
Date, by wire transfer to an account specified in writing by such Noteholder
reasonably satisfactory to the Indenture Trustee as of the preceding Record Date
or, if no such instructions have been delivered to the Indenture Trustee, by
check or money order to such Noteholder mailed to such Noteholder's address as
it appears in the Note Register, the amount required to be distributed to such
Noteholder on such Payment Date pursuant to such Noteholder's Notes; provided,
however, that the Indenture Trustee shall not pay to such Noteholder any amount
required to be withheld from a payment to such Noteholder by the Code. Any
reduction in the principal amount of this Note (or any one or more predecessor
Notes) effected by any payments made on any Payment Date shall be binding upon
all future Noteholders of this Note and of any Note issued upon the registration
of transfer hereof or in exchange hereof or in lieu hereof, whether or not noted
hereon. If funds are expected to be available, as provided in the Indenture, for
payment in full of the then remaining unpaid principal amount of this Note on a
Payment Date, then the Indenture Trustee, in the name of and on behalf of the
Issuer, will notify the Person who was the registered Noteholder hereof as of
the Record Date preceding such Payment Date by notice mailed or transmitted by
facsimile prior to such Payment Date, and the amount then due and payable shall
be payable only upon presentation and surrender of this Note at the address
specified in such notice of final payment.
As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note may be registered on the Note Register
upon surrender of this Note for registration of transfer at the Corporate Trust
Office of the Indenture Trustee, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Indenture Trustee duly
executed by, the Noteholder hereof or such Noteholder's attorney duly authorized
in writing, with such signature guaranteed by an "eligible guarantor
institution" meeting the requirements of the Note Registrar, which requirements
include membership or participation in the Securities Transfer Agent's Medallion
Program ("STAMP") or such other "signature guarantee program" as may be
determined by the Note Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Exchange Act, and thereupon one or more new Notes in
authorized denominations and in the same aggregate principal amount will be
issued to the designated transferee or transferees. No service charge will be
charged for any registration of transfer or exchange of this Note, but the Note
Registrar shall require payment of a sum sufficient to cover any tax or
governmental charge that may be imposed in connection with any registration of
transfer or exchange of this Note.
Each Noteholder or Beneficial Owner of a Note, by its acceptance of a
Note, or, in the case of a Beneficial Owner of a Note, a beneficial interest in
a Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee,
the Sellers, the Servicer, the Depositor or the Indenture Trustee on the Notes
or under the Indenture or any certificate or other writing delivered in
connection therewith, against (i) the Indenture Trustee or the Owner Trustee in
its individual capacity, (ii) any owner of a beneficial interest in the Issuer
or (iii) any partner, owner, beneficiary, agent, officer, director or employee
of the Indenture Trustee or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Owner Trustee or the
Indenture Trustee or of any successor or assign of the Indenture Trustee or the
Owner Trustee in its individual capacity, except as any such Person may have
expressly agreed and except that any such partner, owner or beneficiary shall be
fully liable, to the extent provided by applicable law for any unpaid
consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity.
Each Noteholder or Beneficial Owner of a Note, by its acceptance of a
Note or, in the case of a Beneficial Owner of a Note, a beneficial interest in a
Note, covenants and agrees by accepting the benefits of the Indenture that such
Noteholder or Beneficial Owner will not at any time institute against the
Depositor, the Sellers, the Servicer, GMAC Mortgage Group, Inc. or the Issuer,
or join in any institution against the Depositor, the Sellers, the Servicer,
GMAC Mortgage Group, Inc. or the Issuer of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under any United States
federal or state bankruptcy or similar law in connection with any obligations
relating to the Notes, the Indenture or the other Basic Documents.
Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in the name of which this Note is registered (as of
the day of determination or as of such other date as may be specified in the
Indenture) as the owner hereof for all purposes, whether or not this Note be
overdue, and none of the Issuer, the Indenture Trustee or any such agent shall
be affected by notice to the contrary.
The Indenture permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the Indenture Trustee and the rights of the Noteholders of the Series
2004-HE5 Notes under the Indenture at any time by the Issuer and the Indenture
Trustee with the consent of the Enhancer and the Noteholders of Notes
representing a majority of the aggregate Voting Rights of the Notes then
Outstanding and with prior notice to the Rating Agencies. The Indenture also
contains provisions permitting the Noteholders of Notes representing specified
percentages of the Voting Rights of the Series 2004-HE5 Notes, on behalf of the
Noteholders of all Series 2004-HE5 Notes, to waive compliance by the Issuer with
certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Noteholder
of this Note (or any one of more predecessor Notes) shall be conclusive and
binding upon such Noteholder and upon all future Noteholders of this Note and of
any Note issued upon the registration of transfer hereof or in exchange hereof
or in lieu hereof whether or not notation of such consent or waiver is made upon
this Note. The Indenture also permits the Issuer and the Indenture Trustee to
amend or waive certain terms and conditions set forth in the Indenture without
the consent of Noteholders of the Series 2004-HE5 Notes issued thereunder but
with prior notice to the Rating Agencies and the Enhancer.
The term "Issuer" as used in this Note includes any successor or the
Issuer under the Indenture.
The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Indenture Trustee and the
Noteholders of Notes under the Indenture.
The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.
This Note and the Indenture shall be construed in accordance with the
laws of the State of New York, without reference to its conflicts of law
provisions, and the obligations, rights and remedies of the parties hereunder
and thereunder shall be determined in accordance with such laws.
No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place and rate, and in the coin or currency herein prescribed.
Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, none of Wilmington Trust Company in its
individual capacity, Xxxxx Fargo Bank, N.A., in its individual capacity, any
owner of a beneficial interest in the Issuer, or any of their respective
partners, beneficiaries, agents, officers, directors, employees or successors or
assigns shall be personally liable for, nor shall recourse be had to any of them
for, the payment of principal of or interest on this Note or the performance of,
or the failure to perform, any of the covenants, obligations or indemnifications
contained in the Indenture. The Noteholder of this Note, by its acceptance
hereof, agrees that, except as expressly provided in the Basic Documents, in the
case of an Event of Default under the Indenture, such Noteholder shall have no
claim against any of the foregoing for any deficiency, loss or claim therefrom;
provided, however, that nothing contained herein shall be taken to prevent
recourse to, and enforcement against, the assets of the Issuer for any and all
liabilities, obligations and undertakings contained in the Indenture or in this
Note.
[Signature Page Follows]
IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Issuer and not
in its individual capacity, has caused this Note to be duly executed.
GMACM HOME EQUITY LOAN TRUST 2004-HE5
By: WILMINGTON TRUST COMPANY, not in its
individual capacity but solely as Owner
Trustee
Dated: November 30, 2004
By: ____________________________
Authorized Signatory
CERTIFICATE OF AUTHENTICATION
This is one of the Notes referred to in the within-mentioned Indenture.
XXXXX FARGO BANK, N.A.
not in its individual capacity but solely as
Indenture Trustee
By: __________________________________________
Authorized Signatory
Dated: November 30, 2004
ASSIGNMENT
Social Security or taxpayer I.D. or other identifying number of assignee:
______________________________________________________________________________
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfer unto
______________________________________________________________________________
(name and address of assignee)
the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints ____________________________________________________, attorney, to
transfer said Note on the books kept for registration thereof, with full power
of substitution in the premises.
Dated: ________________ _________________________*/
Signature Guaranteed:
_________________________ */
--------
* NOTICE: The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatever. Such
signature must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Note Registrar, which requirements include membership or
participation in STAMP or such other "signature guarantee program" as may be
determined by the Note Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Securities Exchange Act of 1934, as amended.
EXHIBIT A-2
FORM OF CLASS A-IO NOTE
UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS NOTE IS A "REGULAR INTEREST"
IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT" AS THOSE TERMS ARE DEFINED,
RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986
(THE "CODE").
INTEREST ON THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. THE
OUTSTANDING NOTIONAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
SHOWN ON THE FACE HEREOF.
THIS NOTE DOES NOT REPRESENT AN INTEREST IN OR OBLIGATION OF THE SELLERS, THE
DEPOSITOR, THE SERVICER, THE INDENTURE TRUSTEE, THE OWNER TRUSTEE OR GMAC
MORTGAGE GROUP, INC. OR ANY OF THEIR RESPECTIVE AFFILIATES, EXCEPT AS EXPRESSLY
PROVIDED IN THE INDENTURE OR THE OTHER BASIC DOCUMENTS.
GMACM HOME EQUITY LOAN TRUST 2004-HE5
GMACM Home Equity Loan-Backed Term Notes, Class A-IO
Registered Initial Notional Amount:
$[ ]
No. [ ] Note Rate:
6.00%, subject
to the
limitations set
forth in the
Indenture
CUSIP NO. [ ]
GMACM Home Equity Loan Trust 2004-HE5, a statutory trust duly organized
and existing under the laws of the State of Delaware (herein referred to as the
"Issuer"), for value received, hereby promises to pay to Cede & Co. or its
registered assigns, interest on this Note at the Note Rate (as described below),
payable on each Payment Date in an amount equal to the pro rata portion
allocable hereto (based on the Initial Notional Amount specified above and the
Initial Notional Amount of all Class A-IO Notes), if any, payable from the Note
Payment Account in respect of interest of the Class A-IO Notes (the "Notes")
pursuant to Section 3.05 of the indenture dated as of November 30, 2004 (the
"Indenture"), between the Issuer and Xxxxx Fargo Bank, N.A., as indenture
trustee (the "Indenture Trustee"). Capitalized terms used herein that are not
otherwise defined shall have the meanings ascribed thereto in Appendix A to the
Indenture.
Interest on the Notes will be paid monthly on each Payment Date at the
Note Rate for the related Interest Period through and including the Payment Date
in May 2007. The Note Rate for this Note will be 6.00% per annum, subject to the
limitation set forth in the Indenture. Interest on this Note will accrue for
each Payment Date during the calendar month preceding the month in which such
Payment Date occurs. Interest will be computed on the basis of a 360-day year
consisting of twelve 30 day months. Interest on this Note shall be calculated on
the Notional Amount, which may be reduced from time to time, and will be paid in
the manner specified herein.
This Note is entitled to the benefits of an irrevocable and
unconditional financial guaranty insurance policy issued by Financial Guaranty
Insurance Company (the "Enhancer").
Interest payments on this Note are payable in such coin or currency of
the United States of America as at the time of payment is legal tender for
payment of public and private debts.
Unless the certificate of authentication hereon has been executed by the
Indenture Trustee whose name appears below by manual signature, this Note shall
not be entitled to any benefit under the Indenture referred to herein, or be
valid or obligatory for any purpose.
This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its GMACM Home Equity Loan-Backed Term Notes, Series 2004-HE5 (the
"Series 2004-HE5 Notes"), all issued under the Indenture, to which Indenture and
all indentures supplemental thereto reference is hereby made for a statement of
the respective rights and obligations thereunder of the Issuer, the Indenture
Trustee and the Noteholders of the Series 2004-HE5 Notes. The Series 2004-HE5
Notes are subject to all terms of the Indenture.
The Series 2004-HE5 Notes are and will be equally and ratably secured by
the collateral pledged as security therefor as provided in the Indenture.
Interest on this Note will be payable on each Payment Date, commencing
on December 27, 2004, through and including the Payment Date in May 2007, as
described in the Indenture. No payments shall be made on this Note after the
Payment Date occurring in May 2007. "Payment Date" means the twenty-fifth day of
each month, or, if any such date is not a Business Day, then the next succeeding
Business Day.
Notwithstanding the foregoing, if an Event of Default shall have
occurred and be continuing, then the Indenture Trustee, the Enhancer or the
Noteholders of Notes representing not less than a majority of the aggregate
Voting Rights of the Notes, with the consent of the Enhancer, may declare the
Notes to be immediately due and payable in the manner provided in Section 5.02
of the Indenture.
Any installment of interest, payable on any Note that is punctually paid
or duly provided for by the Issuer on the applicable Payment Date shall be paid
to the related Noteholder on the preceding Record Date, by wire transfer to an
account specified in writing by such Noteholder reasonably satisfactory to the
Indenture Trustee as of the preceding Record Date or, if no such instructions
have been delivered to the Indenture Trustee, by check or money order to such
Noteholder mailed to such Noteholder's address as it appears in the Note
Register, the amount required to be distributed to such Noteholder on such
Payment Date pursuant to such Noteholder's Notes; provided, however, that the
Indenture Trustee shall not pay to such Noteholder any amount required to be
withheld from a payment to such Noteholder by the Code. Any reduction in the
Notional Amount of this Note (or any one or more predecessor Notes) effected by
any payments made on any Payment Date shall be binding upon all future
Noteholders of this Note and of any Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof, whether or not noted
hereon.
As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note may be registered on the Note Register
upon surrender of this Note for registration of transfer at the Corporate Trust
Office of the Indenture Trustee, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Indenture Trustee duly
executed by, the Noteholder hereof or such Noteholder's attorney duly authorized
in writing, with such signature guaranteed by an "eligible guarantor
institution" meeting the requirements of the Note Registrar, which requirements
include membership or participation in the Securities Transfer Agent's Medallion
Program ("STAMP") or such other "signature guarantee program" as may be
determined by the Note Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Exchange Act, and thereupon one or more new Notes in
authorized denominations and in the same aggregate notional amount will be
issued to the designated transferee or transferees. No service charge will be
charged for any registration of transfer or exchange of this Note, but the Note
Registrar shall require payment of a sum sufficient to cover any tax or
governmental charge that may be imposed in connection with any registration of
transfer or exchange of this Note.
Each Noteholder or Beneficial Owner of a Note, by its acceptance of a
Note, or, in the case of a Beneficial Owner of a Note, a beneficial interest in
a Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee,
the Sellers, the Servicer, the Depositor or the Indenture Trustee on the Notes
or under the Indenture or any certificate or other writing delivered in
connection therewith, against (i) the Indenture Trustee or the Owner Trustee in
its individual capacity, (ii) any owner of a beneficial interest in the Issuer
or (iii) any partner, owner, beneficiary, agent, officer, director or employee
of the Indenture Trustee or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Owner Trustee or the
Indenture Trustee or of any successor or assign of the Indenture Trustee or the
Owner Trustee in its individual capacity, except as any such Person may have
expressly agreed and except that any such partner, owner or beneficiary shall be
fully liable, to the extent provided by applicable law for any unpaid
consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity.
Each Noteholder or Beneficial Owner of a Note, by its acceptance of a
Note or, in the case of a Beneficial Owner of a Note, a beneficial interest in a
Note, covenants and agrees by accepting the benefits of the Indenture that such
Noteholder or Beneficial Owner will not at any time institute against the
Depositor, the Sellers, the Servicer, GMAC Mortgage Group, Inc. or the Issuer,
or join in any institution against the Depositor, the Sellers, the Servicer,
GMAC Mortgage Group, Inc. or the Issuer of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under any United States
federal or state bankruptcy or similar law in connection with any obligations
relating to the Notes, the Indenture or the other Basic Documents.
Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in the name of which this Note is registered (as of
the day of determination or as of such other date as may be specified in the
Indenture) as the owner hereof for all purposes, whether or not this Note be
overdue, and none of the Issuer, the Indenture Trustee or any such agent shall
be affected by notice to the contrary.
The Indenture permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the Indenture Trustee and the rights of the Noteholders of the Series
2004-HE5 Notes under the Indenture at any time by the Issuer and the Indenture
Trustee with the consent of the Enhancer and the Noteholders of Notes
representing a majority of the aggregate Voting Rights of the Notes then
Outstanding and with prior notice to the Rating Agencies. The Indenture also
contains provisions permitting the Noteholders of Notes representing specified
percentages of the Voting Rights of the Series 2004-HE5 Notes, on behalf of the
Noteholders of all Series 2004-HE5 Notes, to waive compliance by the Issuer with
certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Noteholder
of this Note (or any one of more predecessor Notes) shall be conclusive and
binding upon such Noteholder and upon all future Noteholders of this Note and of
any Note issued upon the registration of transfer hereof or in exchange hereof
or in lieu hereof whether or not notation of such consent or waiver is made upon
this Note. The Indenture also permits the Issuer and the Indenture Trustee to
amend or waive certain terms and conditions set forth in the Indenture without
the consent of Noteholders of the Series 2004-HE5 Notes issued thereunder but
with prior notice to the Rating Agencies and the Enhancer.
The term "Issuer" as used in this Note includes any successor or the
Issuer under the Indenture.
The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Indenture Trustee and the
Noteholders of Notes under the Indenture.
The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.
This Note and the Indenture shall be construed in accordance with the
laws of the State of New York, without reference to its conflicts of law
provisions, and the obligations, rights and remedies of the parties hereunder
and thereunder shall be determined in accordance with such laws.
No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay interest on this Note at the times, place and
rate, and in the coin or currency herein prescribed.
Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, none of Wilmington Trust Company in its
individual capacity, Xxxxx Fargo Bank, N.A., in its individual capacity, any
owner of a beneficial interest in the Issuer, or any of their respective
partners, beneficiaries, agents, officers, directors, employees or successors or
assigns shall be personally liable for, nor shall recourse be had to any of them
for, the payment of interest on this Note or the performance of, or the failure
to perform, any of the covenants, obligations or indemnifications contained in
the Indenture. The Noteholder of this Note, by its acceptance hereof, agrees
that, except as expressly provided in the Basic Documents, in the case of an
Event of Default under the Indenture, such Noteholder shall have no claim
against any of the foregoing for any deficiency, loss or claim therefrom;
provided, however, that nothing contained herein shall be taken to prevent
recourse to, and enforcement against, the assets of the Issuer for any and all
liabilities, obligations and undertakings contained in the Indenture or in this
Note.
IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Issuer and not
in its individual capacity, has caused this Note to be duly executed.
GMACM HOME EQUITY LOAN TRUST 2004-HE5
By: WILMINGTON TRUST COMPANY, not in its
individual capacity but solely as Owner
Trustee
Dated: November 30, 2004
By: ____________________________
Authorized Signatory
CERTIFICATE OF AUTHENTICATION
This is one of the Notes referred to in the within-mentioned Indenture.
XXXXX FARGO BANK, N.A.
not in its individual capacity but solely as
Indenture Trustee
By: __________________________________________
Authorized Signatory
Dated: November 30, 2004
ASSIGNMENT
Social Security or taxpayer I.D. or other identifying number of assignee:
______________________________________________________________________________
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfer unto
______________________________________________________________________________
(name and address of assignee)
the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints ____________________________________________________, attorney, to
transfer said Note on the books kept for registration thereof, with full power
of substitution in the premises.
Dated: ________________ _________________________*/
Signature Guaranteed:
_________________________ */
--------
* NOTICE: The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatever. Such
signature must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Note Registrar, which requirements include membership or
participation in STAMP or such other "signature guarantee program" as may be
determined by the Note Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Securities Exchange Act of 1934, as amended.
APPENDIX A
DEFINITIONS
Accrued Certificate Interest: With respect to each Payment Date, the
Uncertificated Accrued Interest for such Regular Interest. With respect to the
Class SB Certificates, interest accrued during the related Interest Period at
the Certificate Rate for such Certificate on the related Notional Amount for
such Payment Date.
Addition Notice: With respect to the transfer of Subsequent Mortgage
Loans to the Issuer by either Seller pursuant to Section 2.2 of the Purchase
Agreement (in substantially the form set forth in Exhibit 3 to such agreement),
a notice given by the respective Seller to the Rating Agencies, the Enhancer,
the Indenture Trustee and the Owner Trustee, which shall be given not later than
seven Business Days prior to the related Subsequent Transfer Date, of (i) the
Seller's designation of Subsequent Mortgage Loans to be sold to the Issuer and
(ii) the aggregate principal balance as of the Subsequent Cut-Off Date of such
Subsequent Mortgage Loans.
Adverse REMIC Event: As defined in Section 11.01(f) of the Indenture.
Affiliate: With respect to any Person, any other Person controlling,
controlled by or under common control with such Person. For purposes of this
definition, "control" means the power to direct the management and policies of a
Person, directly or indirectly, whether through ownership of voting securities,
by contract or otherwise and "controlling" and "controlled" shall have meanings
correlative to the foregoing.
Appraised Value: With respect to any Mortgaged Property, either (x) the
value as generally set forth in an appraisal of such Mortgaged Property used to
establish compliance with the underwriting criteria then in effect in connection
with the application for the Mortgage Loan secured by such Mortgaged Property,
or (y) if the sales price of such Mortgaged Property was considered in
accordance with the underwriting criteria applicable to the related Mortgage
Loan, the lesser of (i) the appraised value referred to in (x) above and (ii)
the sales price of such Mortgaged Property.
Assignment of Mortgage: With respect to any Mortgage, an assignment,
notice of transfer or equivalent instrument, in recordable form, sufficient
under the laws of the jurisdiction in which the related Mortgaged Property is
located to reflect the conveyance of such Mortgage, which assignment, notice of
transfer or equivalent instrument may be in the form of one or more blanket
assignments covering Mortgages secured by Mortgaged Properties located in the
same jurisdiction.
Authorized Newspaper: A newspaper of general circulation in the Borough
of Manhattan, The City of New York, printed in the English language and
customarily published on each Business Day, whether or not published on
Saturdays, Sundays or holidays.
Authorized Officer: With respect to the Issuer, any officer of the Owner
Trustee who is authorized to act for the Owner Trustee in matters relating to
the Issuer and who is identified on the list of Authorized Officers delivered by
the Owner Trustee to the Indenture Trustee on the Closing Date (as such list may
be modified or supplemented from time to time thereafter).
Available Funds Rate: With respect to any Payment Date and the Class
A-IO Notes, a per annum rate equal to the product of (a) a fraction, expressed
as a percentage, the numerator of which is equal to Interest Collections
actually received during the related Collection Period minus the Premium payable
on such Payment Date and the denominator of which is equal the Notional Amount
for such Payment Date and (b) 12.
Bankruptcy Code: The Bankruptcy Code of 1978, as amended.
Basic Documents: The Trust Agreement, the Indenture, the Purchase
Agreement, the Servicing Agreement, the Custodial Agreement, the Subsequent
Transfer Agreement, the Insurance Agreement, the Policy and the other documents
and certificates delivered in connection with any of the above.
Beneficial Owner: With respect to any Note, the Person who is the
beneficial owner of such Note as reflected on the books of the Depository or on
the books of a Person maintaining an account with such Depository (directly as a
Depository Participant or indirectly through a Depository Participant, in
accordance with the rules of such Depository).
Billing Cycle: With respect to any Mortgage Loan and Due Date, the
calendar month preceding such Due Date.
Book-Entry Notes: Beneficial interests in the Notes, ownership and
transfers of which shall be made through book entries by the Depository as
described in Section 4.06 of the Indenture.
Business Day: Any day other than (i) a Saturday or a Sunday or (ii) a
day on which banking institutions in the State of New York, the Commonwealth of
Pennsylvania, the State of Delaware or the state in which the Corporate Trust
Office is located are required or authorized by law to be closed.
Capitalized Interest Account: The account established and maintained
pursuant to Section 3.18 of the Servicing Agreement.
Capitalized Interest Requirement: With respect to each Payment Date
during the Pre-Funding Period and on the Payment Date immediately after the
expiration of the Pre-Funding Period, the excess, if any of (i) the sum of (A)
the amount of interest accrued at the weighted average of the applicable Note
Rates on the respective Note Balances for the related Interest Periods on the
amount on deposit in the Pre-Funding Account as of the close of business on the
preceding Payment Date (or as of the Closing Date, in the case of the first
Payment Date) and (B) the amount of any fees paid to the Enhancer, over (ii) the
amount of reinvestment earnings since the preceding Payment Date (or as of the
Closing Date, in the case of the first Payment Date) on funds on deposit in the
Pre-Funding Account.
Certificate Balance: With respect to any Payment Date and the Class SB
Certificates, an amount equal to the then applicable Certificate Percentage
Interest of such Certificate multiplied by the Overcollateralization Amount.
Certificate Distribution Amount: For any Payment Date, the amount, if
any, distributable on the Certificates for such Payment Date pursuant to Section
3.05(a)(xi) of the Indenture.
Certificate of Trust: The Certificate of Trust filed for the Trust
pursuant to Section 3810(a) of the Statutory Trust Statute.
Certificate Paying Agent: The Indenture Trustee, as further described in
Section 3.10 of the Trust Agreement.
Certificate Percentage Interest: With respect to any Payment Date and
any Certificate, the Percentage Interest for such Certificate.
Certificate Rate: With respect to the Class SB Certificates and any
Payment Date, a rate per annum equal to the percentage equivalent of a fraction,
the numerator of which is the sum of the amounts calculated pursuant to clauses
(i) through (iii) below, and the denominator of which is the aggregate principal
balance of the REMIC II Regular Interests. For purposes of calculating the
Certificate Rate for the Class SB Certificates, the numerator is equal to the
sum of the following components:
(i) the REMIC II Remittance Rate for Class LT1 REMIC II Regular Interest
minus the SB-IO Marker Rate, applied to a notional amount equal to the Class
Principal Balance of the Class LT1 REMIC II Regular Interest;
(ii) the REMIC II Remittance Rate for the Class LT2 REMIC II Regular
Interest minus the SB-IO Marker Rate, applied to a notional amount equal to the
Class Principal Balance of Class LT2 REMIC II Regular Interest; and
(iii) the REMIC II Remittance Rate for the Class LT4 REMIC II Regular
Interest minus twice the SB-IO Marker Rate, applied to a notional amount equal
to the Class Principal Balance of Class LT4 REMIC II Regular Interest.
Certificate Register: The register maintained by the Certificate
Registrar in which the Certificate Registrar shall provide for the registration
of Certificates and of transfers and exchanges of Certificates.
Certificate Registrar: Initially, the Indenture Trustee, in its capacity as
Certificate Registrar.
Certificateholder: The Person in whose name a Certificate is registered
in the Certificate Register except that, any Certificate registered in the name
of the Issuer, the Owner Trustee or the Indenture Trustee or any Affiliate of
the Owner Trustee or the Indenture Trustee shall be deemed not to be outstanding
and the registered holder will not be considered a Certificateholder for
purposes of giving any request, demand, authorization, direction, notice,
consent or waiver under the Indenture or the Trust Agreement; provided that, in
determining whether the Indenture Trustee or the Owner Trustee shall be
protected in relying upon any such request, demand, authorization, direction,
notice, consent or waiver, only Certificates that the Indenture Trustee or the
Owner Trustee knows to be so owned shall be so disregarded. Owners of
Certificates that have been pledged in good faith may be regarded as
Certificateholders if the pledgee establishes to the satisfaction of the
Indenture Trustee or the Owner Trustee, as the case may be, the pledgee's right
so to act with respect to such Certificates and that the pledgee is not the
Issuer, any other obligor upon the Certificates or any Affiliate of the Owner
Trustee or the Indenture Trustee.
Certificates: Collectively, the Class R and the Class SB Certificates.
Class: With respect to any Note, all Notes that bear the same Class
designation, (i.e., the Class A-1 Notes as a group, Class A-2 Notes as a group,
Class A-3 Notes as a group, Class A-4 Notes as a group, Class A-5 Notes as a
group, Class A-6 Notes as a group and the Class A-IO Notes as a group). With
respect to any Certificate, all Certificates that bear the same Class
designation, (i.e., the Class SB Certificates as a group, Class R-I Certificates
as a group, Class R-II Certificates as a group and Class R-III Certificates as a
group). With respect to any REMIC Regular Interest, all Regular Interests that
bear the same class designation.
Class A-IO Excess Amount: For any Payment Date, the product of (A) the
excess, if any, of (i) the product of (x) the Net WAC Cap for such Payment
Date(stated as a monthly rate) and (y) the aggregate principal balance of REMIC
II Regular Interest LT1, REMIC II Regular Interest LT2, REMIC II Regular
Interest LT3 and REMIC II Regular Interest LT4 after distributions and the
allocation of Liquidation Loss Amounts on the prior Payment Date over (ii) the
sum of (x) the aggregate for all Notes other than the Class A-IO Notes of one
month's interest at the Note Rate for such Payment Date on the Note Balance
thereof and (y) the Class A-IO Net Funds Amount and (B) a fraction whose
numerator is the Class A-IO Interest Carryforward Amount and whose denominator
is the aggregate of the Interest Carryforward Amounts for all classes of Notes.
Class A-IO Net Funds Amount: For any Payment Date, the product of (A)
the excess, if any, of (i) the lesser of (x) 6.00% and (y) the Available Funds
Rate over (ii) Weighted Average Net Loan Rate and (B) the Class A-IO Notional
Balance.
Class A-IO Notes: The Class A-IO GMACM Home Equity Loan-Backed Term
Notes, Series 2004-HE5, in substantially the form set forth in Exhibit A-2 to
the Indenture.
Class A-1 Net Funds Cap: With respect to any Payment Date, a per annum
rate equal to the product of (x) a fraction, expressed as a percentage, the
numerator of which is equal to the excess of: (i) the product of (a) a per annum
rate equal to the Weighted Average Net Loan Rate of the Mortgage Loans as of the
first day of the month preceding the month in which such Payment Date occurs and
(b) the Pool Balance prior to giving effect to distributions to be made on such
Payment Date over (ii) the product of (a) 12 and (b) interest due to the Class
A-2, Class A-3, Class A-4, Class A-5, Class A-6 and Class A-IO Notes on such
Payment Date, and the denominator of which is equal to the aggregate Note
Balance of the Class A-1 Notes; and (y) a fraction, the numerator of which is 30
and the denominator of which is the actual number of days in the Interest
Period.
Class A-1 Notes: The Class A-1 GMACM Home Equity Loan-Backed Term Notes,
Series 2004-HE5, in substantially the form set forth in Exhibit A-1 to the
Indenture.
Class A-2 Notes: The Class A-2 GMACM Home Equity Loan-Backed Term Notes,
Series 2004-HE5, in substantially the form set forth in Exhibit A-1 to the
Indenture.
Class A-3 Notes: The Class A-3 GMACM Home Equity Loan-Backed Term Notes,
Series 2004-HE5, in substantially the form set forth in Exhibit A-1 to the
Indenture.
Class A-4 Notes: The Class A-4 GMACM Home Equity Loan-Backed Term Notes,
Series 2004-HE5, in substantially the form set forth in Exhibit A-1 to the
Indenture.
Class A-5 Notes: The Class A-5 GMACM Home Equity Loan-Backed Term Notes,
Series 2004-HE5, in substantially the form set forth in Exhibit A-1 to the
Indenture.
Class A-6 Lockout Distribution Amount: With respect to any Payment Date,
the product of (a) the Class A-6 Lockout Percentage for such Payment Date and
(b) the Class A-6 Pro Rata Distribution Amount for such Payment Date. In no
event shall the Class A-6 Lockout Distribution Amount for a Payment Date exceed
the Principal Collection Distribution Amount or the Note Balance of the Class
A-6 Notes immediately prior to such Payment Date.
Class A-6 Lockout Percentage: With respect to each Payment Date, the
applicable percentage set forth below:
CLASS A-6
PAYMENT DATES LOCKOUT PERCENTAGE
December 2004 through and including November 2007.... 0%
December 2007 through and including November 2009.... 45%
December 2009 through and including November 2010.... 80%
December 2010 through and including November 2011.... 100%
December 2011 and thereafter......................... 300%
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Class A-6 Notes: The Class A-6 GMACM Home Equity Loan-Backed Term Notes,
Series 2004-HE5, in substantially the form set forth in Exhibit A-1 to the
Indenture.
Class A-6 Pro Rata Distribution Amount: With respect to any Payment
Date, an amount equal to the product of (a) a fraction, the numerator of which
is the Note Balance of the Class A-6 Notes immediately prior to such Payment
Date and the denominator of which is the aggregate Note Balance of the Notes
immediately prior to such Payment Date and (b) the Principal Collection
Distribution Amount.
Class I-LTA REMIC I Regular Interest: A regular interest in REMIC I that
is held as an asset of REMIC II, that has an initial principal balance as set
forth in the table in the definition of "REMIC I Regular Interests," that bears
interest at the related REMIC I Remittance Rate as set forth in the table in the
definition of "REMIC I Regular Interests," and that has such other terms as are
described herein.
Class I-LTB1 REMIC I Regular Interest: A regular interest in REMIC I
that is held as an asset of REMIC II, that has an initial principal balance
equal to the related Uncertificated Principal Balance, that bears interest at
the related REMIC I Remittance Rate, and that has such other terms as are
described herein. Such REMIC I Regular Interest shall be treated as related to
REMIC II Regular Interest LTA-IO1.
Class I-LTB2 REMIC I Regular Interest: A regular interest in REMIC I
that is held as an asset of REMIC II, that has an initial principal balance
equal to the related Uncertificated Principal Balance, that bears interest at
the related REMIC I Remittance Rate, and that has such other terms as are
described herein. Such REMIC I Regular Interest shall be treated as related to
REMIC II Regular Interest LTA-IO2.
Class I-LTB3 REMIC I Regular Interest: A regular interest in REMIC I
that is held as an asset of REMIC II, that has an initial principal balance
equal to the related Uncertificated Principal Balance, that bears interest at
the related REMIC I Remittance Rate, and that has such other terms as are
described herein. Such REMIC I Regular Interest shall be treated as related to
REMIC II Regular Interest LTA-IO3.
Class I-LTB4 REMIC I Regular Interest: A regular interest in REMIC I
that is held as an asset of REMIC II, that has an initial principal balance
equal to the related Uncertificated Principal Balance, that bears interest at
the related REMIC I Remittance Rate, and that has such other terms as are
described herein. Such REMIC I Regular Interest shall be treated as related to
REMIC II Regular Interest LTA-IO4.
Class I-LTB5 REMIC I Regular Interest: A regular interest in REMIC I
that is held as an asset of REMIC II, that has an initial principal balance
equal to the related Uncertificated Principal Balance, that bears interest at
the related REMIC I Remittance Rate, and that has such other terms as are
described herein. Such REMIC I Regular Interest shall be treated as related to
REMIC II Regular Interest LTA-IO5.
Class LT Principal Reduction Amounts: For any Payment Date, the amounts
by which the principal balances of the REMIC II Regular Interest LT1, REMIC II
Regular Interest LT2, REMIC II Regular Interest LT3 and REMIC II Regular
Interest LT4 respectively will be reduced on such Payment Date by the allocation
of Liquidation Loss Amounts and the distribution of principal, determined as
follows:
For purposes of the succeeding formulas the following symbols shall have the
meanings set forth below:
Y1 = the Class Principal Balance of the REMIC II Regular Interest
LT1 after the allocation of REMIC II Liquidation Loss Amounts and
making of distributions on the prior Payment Date.
Y2 = the Class Principal Balance of the REMIC II Regular Interest
LT2 after the allocation of REMIC II Liquidation Loss Amounts and
making of distributions on the prior Payment Date.
Y3 = the Class Principal Balance of the REMIC II Regular Interest
LT3 after the allocation of REMIC II Liquidation Loss Amounts and
making of distributions on the prior Payment Date.
Y4 = the Class Principal Balance of the REMIC II Regular Interest
LT4 after the allocation of REMIC II Liquidation Loss Amounts and
making of distributions on the prior Payment Date (note: Y4 = Y3
).
(DELTA)Y1 = the Class LT1 Principal Reduction Amount.
(DELTA)Y2 = the Class LT2 Principal Reduction Amount.
(DELTA)Y3 = the Class LT3 Principal Reduction Amount.
(DELTA)Y4 = the Class XX0 Xxxxxxxxx Xxxxxxxxx Xxxxxx.
X0 = the aggregate principal balance of REMIC II Regular Interest
LT1, REMIC II Regular Interest LT2, REMIC II Regular Interest LT3
and REMIC II Regular Interest LT4 after distributions and the
allocation of Liquidation Loss Amounts on the prior Payment Date.
= the aggregate Principal Balance of the Loans after giving effect
to principal payments distributed and Liquidation Loss Amounts
allocated on the prior Payment Date reduced (but not more than
once) by amounts advanced in respect of principal on the Mortgage
Loans on prior Payment Dates and remaining unreimbursed.
P1 = the aggregate principal balance of the REMIC II Regular
Interest LT1, REMIC II Regular Interest LT2, REMIC II Regular
Interest LT3 and REMIC II Regular Interest LT4 after
distributions and the allocation of Liquidation Loss Amounts to
be made on such Payment Date.
= the aggregate Principal Balance of the Loans after giving effect
to principal payments distributed and Liquidation Loss Amounts
allocated on such Payment Date reduced (but not more than once)
by amounts advanced in respect of principal on the Mortgage Loans
on such Payment Date and prior Payment Dates and remaining
unreimbursed.
(DELTA)P = P0 - P1 = the aggregate of the Class LT1, Class LT2, Class
LT3 and Class LT4, Principal Reduction Amounts.
=the sum of (I) the aggregate of the Liquidation Loss Amounts for
such Payment Date allocated to principal by the definition of
REMIC II Liquidation Loss Amounts, (II) the Principal Collections
for such Payment Date and (III) the principal portion of amounts
advanced for such Payment Date in respect of the Mortgage Loans.
R0 = the Net WAC Cap (stated as a monthly rate) after giving effect
to amounts distributed and Liquidation Loss Amounts allocated on
the prior Payment Date.
R1 = the Net WAC Cap (stated as a monthly rate) after giving effect
to amounts to be distributed and Liquidation Loss Amounts to be
allocated on such Payment Date.
(alpha)= (Y2 + Y3)/P0. The initial value of (alpha) on the Closing Date for use
on the first Payment Date shall be 0.0001.
(gamma)0 = lesser of (A) the interest accruing on, and the Interest
Carry Forward Amounts for, the Notes (other than the Class A-IO
Notes) in respect of the Interest Period related to such Payment
Date (without reduction by the interest portion of Liquidation
Loss Amounts, Prepayment Interest Shortfalls or Relief Act
Shortfalls allocated to such Notes) and (B) R0 * P0 reduced by
the Class A-IO Net Funds Amount and the Class A-IO Excess Amount
for such Payment Date.
(gamma)1 = lesser of (A) the interest accruing on, and the Interest
Carry Forward Amounts for, the Notes (other than the Class A-IO
Notes) in respect of the Interest Period related to the next
succeeding Payment Date (without reduction by the interest
portion of Liquidation Loss Amounts, Prepayment Interest
Shortfalls or Relief Act Shortfalls allocated to such Notes) and
(B) R1 * P1 reduced by the Class A-IO Net Funds Amount and the
Class A-IO Excess Amount for such next succeeding Payment Date.
Then, based on the foregoing definitions:
(DELTA)Y1 = (DELTA)P - (DELTA)Y2 - (DELTA)Y3 - (DELTA)Y4;
(DELTA)Y2 = ((alpha)/2){((gamma) 0R1 - (gamma)1R0)/R0R1};
(DELTA)Y3 = (alpha)(DELTA)P - (DELTA)Y2; and
(DELTA)Y4 = (DELTA)Y3
if both (DELTA)Y2 and (DELTA)Y3, as so determined, are non-negative
numbers. Otherwise:
(1) If (DELTA)Y2, as so determined, is negative, then
(DELTA)Y2 = 0;
(DELTA)Y3 = a{a1R0P0 - a0R1P1}/{a1R0};
(DELTA)Y4 = (DELTA)Y3; and
(DELTA)Y1 = (DELTA)P - (DELTA)Y2 - (DELTA)Y3 - (DELTA)Y4.
(2) If (DELTA)Y3, as so determined, is negative, then
(DELTA)Y3 = 0;
(DELTA)Y2 = a{a1R0P0 - a0R1P1}/{2R1R0P1 - a1R0};
(DELTA)Y4 = (DELTA)Y3; and
(DELTA)Y1 = (DELTA)P - (DELTA)Y2 - (DELTA)Y3 - (DELTA)Y4.
Class LT1 Principal Distribution Amount: For any Payment Date, the
excess, if any, of the Class LT1 Principal Reduction Amount for such Payment
Date over the principal Liquidation Loss Amounts allocated to the Class LT1
REMIC II Regular Interest on such Payment Date.
Class LT2 Principal Distribution Amount: For any Payment Date, the
excess, if any, of the Class LT2 Principal Reduction Amount for such Payment
Date over the principal Liquidation Loss Amounts allocated to the Class LT2
REMIC II Regular Interest on such Payment Date.
Class LT3 Principal Distribution Amount: For any Payment Date, the
excess, if any, of the Class LT3 Principal Reduction Amount for such Payment
Date over the principal Liquidation Loss Amounts allocated to the Class LT3
REMIC II Regular Interest on such Payment Date.
Class LT4 Principal Distribution Amount: For any Payment Date, the
excess, if any, of the Class LT4 Principal Reduction Amount for such Payment
Date over the principal Liquidation Loss Amounts allocated to the Class LT4
REMIC II Regular Interest on such Payment Date.
Class Principal Balance: For each Class of REMIC I Regular Interests,
the Initial Balance thereof (as set forth in the definition of REMIC I Regular
Interests) as reduced on each successive Payment Date first by Liquidation Loss
Amounts allocated to the principal thereof by the definition of REMIC I
Liquidation Loss Amounts and second by principal deemed distributed in respect
thereof on such Payment Date pursuant to Section 5.01(e) of the Trust Agreement.
For each Class of REMIC II Regular Interests, the Initial Balance thereof (as
set forth in the definition of REMIC II Regular Interests) as reduced on each
successive Payment Date first by Liquidation Loss Amounts allocated to the
principal thereof by the definition of REMIC II Liquidation Loss Amounts and
second by principal deemed distributed in respect thereof on such Payment Date
pursuant to Section 5.01(f) of the Trust Agreement. For each Class of Notes, the
Initial Balance thereof as reduced on each successive Payment Date by principal
distributed in respect thereof on such Payment Date pursuant to Section 3.03 of
the Servicing Agreement and Section 3.05 of the Indenture.
Class R Certificates: The Class R-I Certificates, Class R-II
Certificates and Class R-III Certificates, each as substantially in the form of
Exhibit I to the Trust Agreement and entitled to distributions as provided in
the Trust Agreement.
Class SB Certificates: The Class SB Certificates substantially in the
form of Exhibit A to the Trust Agreement and entitled to distributions as
provided in the Trust Agreement.
Class SB Distribution Amount: On any Payment Date, the sum of (i)Accrued
Certificate Interest for such Payment Date (ii) the amounts payable to the
Certificates pursuant to Section 3.05(a)(xi) of the Indenture and (iii) the
Overcollateralization Release Amount, if any, for the Determination Date related
to such Payment Date, reduced, but not below zero, by the Liquidation Loss
Distribution Amount and Overcollateralization Increase Amount for such Payment
Date, all of the foregoing done without double counting either in addition or
subtraction.
Closing Date: November 30, 2004.
Code: The Internal Revenue Code of 1986, as amended, and the rules and
regulations promulgated thereunder.
Collateral: The meaning specified in the Granting Clause of the Indenture.
Collection Period: With respect to any Mortgage Loan and Payment Date, the
calendar month preceding any such Payment Date.
Collections: With respect to any Collection Period, all Interest
Collections and Principal Collections during such Collection Period.
Combined Loan-to-Value Ratio or CLTV: With respect to each Mortgage
Loan, the ratio, expressed as a percentage, of the sum of (i) the initial
principal balance of such Mortgage Loan and (ii) any outstanding principal
balance, at origination of such Mortgage Loan, of all other mortgage loans, if
any, secured by senior or subordinate liens on the related Mortgaged Property,
to the Appraised Value, or, when not available, the Stated Value.
Commission: The Securities and Exchange Commission.
Corporate Trust Office: With respect to the Indenture Trustee,
Certificate Registrar, Certificate Paying Agent and Paying Agent, the principal
corporate trust office of the Indenture Trustee and Note Registrar at which at
any particular time its corporate trust business shall be administered, which
office at the date of the execution of this instrument is located at (i) for
Note and Certificate transfer purposes: Xxxxx Xxxxx Xxxxxx, Xxxxx xxx Xxxxxxxxx,
Xxxxxxxxxxx, Xxxxxxxxx 00000-0000, Attention: Corporate Trust Services-GMACM
Series 2004-HE5 and (ii) for all other purposes 0000 Xxx Xxxxxxxxx Xxxx,
Xxxxxxxx, Xxxxxxxx 00000-0000, Attention: Corporate Trust Services-GMACM Series
2004-HE5. With respect to the Owner Trustee, the principal corporate trust
office of the Owner Trustee at which at any particular time its corporate trust
business shall be administered, which office at the date of the execution of
this Trust Agreement is located at Xxxxxx Square North, 0000 Xxxxx Xxxxxx
Xxxxxx, Xxxxxxxxxx, Xxxxxxxx 00000, Attention: Corporate Trust Administration.
Custodial Account: The account or accounts created and maintained by the
Servicer pursuant to Section 3.02(b) of the Servicing Agreement, in which the
Servicer shall deposit or cause to be deposited certain amounts in respect of
the Mortgage Loans.
Custodial Agreement: Any Custodial Agreement among the Custodian, the
Indenture Trustee, the Issuer and the Servicer relating to the custody of the
Mortgage Loans and the Related Documents.
Custodian: GMAC Bank, a federal savings bank, and its successors and
assigns, or any successor custodian for the Mortgage Files appointed by the
Indenture Trustee, the Enhancer and the Servicer.
Cut-Off Date: November 1, 2004.
Cut-Off Date Principal Balance: With respect to any Initial Mortgage
Loan or Subsequent Mortgage Loan, the unpaid principal balance thereof as of the
close of business on the last day of the Billing Cycle immediately prior to the
Cut-Off Date or Subsequent Cut-Off Date, as the case may be.
Default: Any occurrence which is or with notice or the lapse of time or
both would become an Event of Default.
Definitive Notes: Any definitive, fully registered Note, as described in
Section 4.06 of the Indenture.
Deficiency Amount: With respect to any Payment Date and the Notes, an
amount equal to the sum of (a) the amount by which the aggregate amount of
accrued interest on the Notes (excluding any Relief Act Shortfalls for such
Payment Date) at the respective Note Rates on such Payment Date exceeds the
amount on deposit in the Note Payment Account available for interest
distributions on the Notes on such Payment Date and (b)(i) with respect to any
Payment Date that is not the Final Payment Date, any Liquidation Loss Amount
with respect to the Mortgage Loans for such Payment Date, to the extent not
distributed as part of the Liquidated Loss Distribution Amount to the Holders of
the Notes or to the extent not applied as a reduction to the
Overcollateralization Amount, in each case, on such Payment Date or (ii) on the
Final Payment Date, the aggregate outstanding principal balance of the Notes to
the extent otherwise not paid on such date.
Deleted Loan: A Mortgage Loan replaced or to be replaced with an
Eligible Substitute Loan.
Depositor: Residential Asset Mortgage Products, Inc., a Delaware
corporation, or its successor in interest.
Depository: The Depository Trust Company or a successor appointed by the
Indenture Trustee with the approval of the Issuer. Any successor to the
Depository shall be an organization registered as a "clearing agency" pursuant
to Section 17A of the Exchange Act and the regulations of the Commission
thereunder.
Depository Participant: A Person for whom, from time to time, the
Depository effects book-entry transfers and pledges of securities deposited with
the Depository.
Determination Date: With respect to any Payment Date, the 18th day of
the month in which such Payment Date occurs or if such day is not a Business
Day, the next succeeding Business Day.
Disqualified Organization: Any organization defined as a "disqualified
organization" under Section 860E(e)(5) of the Code, and if not otherwise
included, any of the following: (i) the United States, any State or political
subdivision thereof, any possession of the United States, or any agency or
instrumentality of any of the foregoing (other than an instrumentality which is
a corporation if all of its activities are subject to tax and, except for
Xxxxxxx Mac, a majority of its board of directors is not selected by such
governmental unit), (ii) a foreign government, any international organization,
or any agency or instrumentality of any of the foregoing, (iii) any organization
(other than certain farmers' cooperatives described in Section 521 of the Code)
which is exempt from the tax imposed by Chapter 1 of the Code (including the tax
imposed by Section 511 of the Code on unrelated business taxable income), (iv)
rural electric and telephone cooperatives described in Section 1381(a)(2)(C) of
the Code, (v) any "electing large partnership," as defined in Section 775(a) of
the Code and (vi) any other Person so designated by the Trustee based upon an
Opinion of Counsel that the holding of an Ownership Interest in a Class R
Certificate by such Person may cause the Trust Estate or any Person having an
Ownership Interest in any Class of Certificates (other than such Person) to
incur a liability for any federal tax imposed under the Code that would not
otherwise be imposed but for the Transfer of an Ownership Interest in a Class R
Certificate to such Person. The terms "United States," "State" and
"international organization" shall have the meanings set forth in Section 7701
of the Code or successor provisions.
Distribution Account: The account or accounts created and maintained by
the Certificate Paying Agent pursuant to Section 3.10(c) of the Trust Agreement.
The Certificate Paying Agent will make all distributions on the Certificates
from money on deposit in the Distribution Account.
Due Date: With respect to any Payment Date and any Mortgage Loan, the
day during the related Collection Period on which the Monthly Payment is due.
Eligible Account: An account that is any of the following: (i)
maintained with a depository institution the short-term debt obligations of
which have been rated by each Rating Agency in its highest rating category
available, or (ii) an account or accounts in a depository institution in which
such accounts are fully insured to the limits established by the FDIC, provided
that any deposits not so insured shall, to the extent acceptable to each Rating
Agency, as evidenced in writing, be maintained such that (as evidenced by an
Opinion of Counsel delivered to the Indenture Trustee and each Rating Agency)
the Indenture Trustee have a claim with respect to the funds in such account or
a perfected first security interest against any collateral (which shall be
limited to Permitted Investments) securing such funds that is superior to claims
of any other depositors or creditors of the depository institution with which
such account is maintained, or (iii) an account or accounts maintained with a
depository institution or trust company, as long as its short-term debt
obligations are rated P-1 by Moody's and A-1+ by Standard & Poor's (or the
equivalent) or better by each Rating Agency, and its long term debt obligations
are rated A2 by Moody's and AA- by Standard & Poor's (or the equivalent) or
better by each Rating Agency, or (iv) a segregated trust account or accounts
maintained in the corporate trust division of a depository institution or trust
company, acting in its fiduciary capacity, or (v) an account or accounts of a
depository institution acceptable to each Rating Agency (as evidenced in writing
by each Rating Agency that use of any such account will not cause a Rating Event
if determined without regard to the Policy).
Eligible Substitute Loan: A Mortgage Loan substituted by either Seller
or GMACM for a Deleted Loan, which must, on the date of such substitution, as
confirmed in an Officer's Certificate delivered to the Indenture Trustee, (i)
have an outstanding principal balance, after deduction of the principal portion
of the monthly payment due in the month of substitution (or in the case of a
substitution of more than one Mortgage Loan for a Deleted Loan, an aggregate
outstanding principal balance, after such deduction), not in excess of the
outstanding principal balance of the Deleted Loan (the amount of any shortfall
to be deposited by such Seller in the Custodial Account in the month of
substitution); (ii) comply with each representation and warranty made by GMACM
set forth in Section 3.1(b) of the Purchase Agreement, other than clauses
(xiii), (xxii), (xxiii), (xxv) and (xxxiv), in the case of an Eligible
Substitute Loan substituted by GMACM, and comply with the representations and
warranties made by WG Trust set forth in Section 3.1(d) of the Purchase
Agreement, in the case of an Eligible Substitute Loan substituted by WG Trust,
as of the date of substitution; (iii) have a Loan Rate and Net Loan Rate no
lower than and not more than 1% per annum higher than the Loan Rate and Net Loan
Rate, respectively, of the Deleted Loan as of the date of substitution; (iv)
have a CLTV at the time of substitution no higher than that of the Deleted Loan
at the time of substitution; (v) have a remaining term to stated maturity not
greater than (and not more than one year less than) that of the Deleted Loan;
and (vi) not be 30 days or more delinquent.
Enhancer: Financial Guaranty Insurance Company, any successor thereto or
any replacement Enhancer substituted pursuant to the Indenture.
Enhancer Default: Any failure by the Enhancer to make a payment required
under the Policy in accordance with its terms.
ERISA: The Employee Retirement Income Security Act of 1974, as amended.
Event of Default: With respect to the Indenture, any one of the
following events (whatever the reason for such Event of Default and whether it
shall be voluntary or involuntary or be effected by operation of law or pursuant
to any judgment, decree or order of any court or any order, rule or regulation
of any administrative or governmental body):
(a) a default in the payment of the principal of, any installment of the
principal of or interest on any Note when the same becomes due and payable, and
such default shall continue for a period of five (5) days;
(b) there occurs a default in the observance or performance in any material
respect of any covenant or agreement of the Issuer made in the Indenture, or any
representation or warranty of the Issuer made in the Indenture or in any
certificate delivered pursuant hereto or in connection herewith proving to have
been incorrect in any material respect as of the time when the same shall have
been made that has a material adverse effect on the Noteholders or the Enhancer,
and such default shall continue or not be cured, or the circumstance or
condition in respect of which such representation or warranty was incorrect
shall not have been eliminated or otherwise cured, for a period of 30 days after
there shall have been given, by registered or certified mail, to the Issuer by
the Indenture Trustee or to the Issuer and the Indenture Trustee by the Enhancer
or by the Noteholders of at least 25% of the aggregate Note Balance of the
Notes, a written notice specifying such default or incorrect representation or
warranty and requiring it to be remedied and stating that such notice is a
notice of default hereunder;
(c) there occurs the filing of a decree or order for relief by a court having
jurisdiction in the premises in respect of the Issuer or any substantial part of
the Trust Estate in an involuntary case under any applicable federal or state
bankruptcy, insolvency or other similar law now or hereafter in effect, or
appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator or
similar official of the Issuer or for any substantial part of the Trust Estate,
or ordering the winding-up or liquidation of the Issuer's affairs, and such
decree or order shall remain unstayed and in effect for a period of 60
consecutive days; or
(d) there occurs the commencement by the Issuer of a voluntary case under any
applicable federal or state bankruptcy, insolvency or other similar law now or
hereafter in effect, or the consent by the Issuer to the entry of an order for
relief in an involuntary case under any such law, or the consent by the Issuer
to the appointment or taking possession by a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official of the Issuer or for any
substantial part of the assets of the Trust Estate, or the making by the Issuer
of any general assignment for the benefit of creditors, or the failure by the
Issuer generally to pay its debts as such debts become due, or the taking of any
action by the Issuer in furtherance of any of the foregoing.
Excess Capitalized Interest Requirement: With respect to each Payment
Date during the Pre-Funding Period and on the Payment Date immediately after the
end of the Pre-Funding Period, an amount equal to the excess of (i) one month's
interest at the Weighted Average Net Loan Rate on the funds on deposit in the
Pre-Funding Account over (ii) the sum of (a) the Capitalized Interest
Requirement and (b) the amount of reinvestment earnings since the preceding
Payment Date (or as of the Closing Date, in the case of the first Payment Date)
on funds on deposit in the Pre-Funding Account.
Excess Spread: With respect to any Payment Date, the excess, if any, of
(x) Interest Collections for the related Payment Date with respect to the
Mortgage Loans over (y) the amounts paid on such Payment Date to the Holders of
the Notes on account of interest and the Premium payable to the Enhancer for
such Payment Date.
Exchange Act: The Securities Exchange Act of 1934, as amended, and the
rules and regulations promulgated thereunder.
Expenses: The meaning specified in Section 7.02 of the Trust Agreement.
Xxxxxx Xxx: Xxxxxx Xxx, a federally chartered and privately owned
corporation organized and existing under the Federal National Mortgage
Association Charter Act, or any successor thereto.
FDIC:The Federal Deposit Insurance Corporation or any successor thereto.
Final Payment Date: The Payment Date in September 2034.
Fiscal Year: The fiscal year of the Trust, which shall end on December 31
of each year.
Foreclosure Profit: With respect to a Liquidated Mortgage Loan, the
amount, if any, by which (i) the aggregate of Liquidation Proceeds net of
Liquidation Expenses exceeds (ii) the Principal Balance of such Liquidated
Mortgage Loan (plus accrued and unpaid interest thereon at the applicable Loan
Rate from the date interest was last paid through the date of receipt of the
final Liquidation Proceeds) immediately prior to the final recovery of the
related Liquidation Proceeds.
Xxxxxxx Mac: Xxxxxxx Mac, a corporation created and existing under Title
III of the Emergency Home Finance Act of 1970, as amended, or any successor
thereto.
GAAP: Generally accepted accounting principles.
GMAC Bank: GMAC Bank, a federal savings bank, and its successors and
assigns.
GMACM: GMAC Mortgage Corporation, and its successors and assigns.
GMACM Initial Mortgage Loans: The Initial Mortgage Loans transferred to the
Depositor by GMACM as set forth in the Purchase Agreement.
Grant: Pledge, bargain, sell, warrant, alienate, remise, release,
convey, assign, transfer, create, and xxxxx x xxxx upon and a security interest
in and right of set-off against, deposit, set over and confirm pursuant to the
Indenture. A Grant of the Collateral or of any other agreement or instrument
shall include all rights, powers and options (but none of the obligations) of
the granting party thereunder, including the immediate and continuing right to
claim for, collect, receive and give receipt for principal and interest payments
in respect of such collateral or other agreement or instrument and all other
moneys payable thereunder, to give and receive notices and other communications,
to make waivers or other agreements, to exercise all rights and options, to
bring proceedings in the name of the granting party or otherwise, and generally
to do and receive anything that the granting party is or may be entitled to do
or receive thereunder or with respect thereto.
Indemnified Party: The meaning specified in Section 7.02 of the Trust
Agreement.
Indenture: The indenture dated as of the Closing Date, between the Issuer
and the Indenture Trustee.
Indenture Trustee: Xxxxx Fargo Bank, N.A., and its successors and assigns
or any successor indenture trustee appointed pursuant to the terms of the
Indenture.
Independent: When used with respect to any specified Person, such Person
(i) is in fact independent of the Issuer, any other obligor on the Notes, the
Sellers, the Depositor and any Affiliate of any of the foregoing Persons, (ii)
does not have any direct financial interest or any material indirect financial
interest in the Issuer, any such other obligor, the Sellers, the Depositor or
any Affiliate of any of the foregoing Persons and (iii) is not connected with
the Issuer, any such other obligor, the Sellers, the Depositor or any Affiliate
of any of the foregoing Persons as an officer, employee, promoter, underwriter,
trustee, partner, director or person performing similar functions.
Independent Certificate: A certificate or opinion to be delivered to the
Indenture Trustee under the circumstances described in, and otherwise complying
with, the applicable requirements of Section 10.01 of the Indenture, made by an
Independent appraiser or other expert appointed by an Issuer Order and approved
by the Indenture Trustee in the exercise of reasonable care, and such opinion or
certificate shall state that the signer has read the definition of "Independent"
in this Indenture and that the signer is Independent within the meaning thereof.
Initial Aggregate Note Balance: $700,000,000.
Initial Class A-1 Note Balance: $350,811,000.
Initial Class A-2 Note Balance: $100,923,000.
Initial Class A-3 Note Balance: $ 98,479,000.
Initial Class A-4 Note Balance: $25,301,000.
Initial Class A-5 Note Balance: $88,486,000.
Initial Class A-6 Note Balance: $36,000,000.
Initial Class A-IO Notional Amount: $100,000,000.
Initial Mortgage Loans: The mortgage loans initially transferred by the
Depositor to the Issuer on the Closing Date, which are listed on the Mortgage
Loan Schedule Exhibit 1 to the Purchase Agreement.
Initial Pool Balance: $700,000,000.
Insolvency Event: With respect to a specified Person, (a) the filing of
a decree or order for relief by a court having jurisdiction in the premises in
respect of such Person or any substantial part of its property in an involuntary
case under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect, or appointing a receiver, liquidator, assignee, custodian,
trustee, sequestrator or similar official for such Person or for any substantial
part of its property, or ordering the winding-up or liquidation of such Person's
affairs, and such decree or order shall remain unstayed and in effect for a
period of 60 consecutive days; or (b) the commencement by such Person of a
voluntary case under any applicable bankruptcy, insolvency or other similar law
now or hereafter in effect, or the consent by such Person to the entry of an
order for relief in an involuntary case under any such law, or the consent by
such Person to the appointment of or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official for
such Person or for any substantial part of its property, or the making by such
Person of any general assignment for the benefit of creditors, or the failure by
such Person generally to pay its debts as such debts become due or the admission
by such Person in writing (as to which the Indenture Trustee shall have notice)
of its inability to pay its debts generally, or the adoption by the Board of
Directors or managing member of such Person of a resolution which authorizes
action by such Person in furtherance of any of the foregoing.
Insurance Agreement: The Insurance and Indemnity Agreement dated as the
Closing Date, among the Servicer, the Sellers, the Depositor, the Issuer, the
Indenture Trustee and the Enhancer, including any amendments and supplements
thereto.
Insurance Proceeds: Proceeds paid by any insurer (other than the
Enhancer) pursuant to any insurance policy covering a Mortgage Loan which are
required to be remitted to the Servicer, or amounts required to be paid by the
Servicer pursuant to the next to last sentence of Section 3.04 of the Servicing
Agreement, net of any component thereof (i) covering any expenses incurred by or
on behalf of the Servicer in connection with obtaining such proceeds, (ii) that
is applied to the restoration or repair of the related Mortgaged Property, (iii)
released to the related Mortgagor in accordance with the Servicer's normal
servicing procedures or (iv) required to be paid to any holder of a mortgage
senior to such Mortgage Loan.
Insured Amount: As defined in the Policy.
Interest Carry Forward Amount: With respect to any Payment Date and any
Class of Notes (other than the Class A-1 Notes and the Class A-IO Notes) the sum
of:
(1) if on such Payment Date the Note Rate on any such Class is limited
to the Net WAC Cap, the excess of (a) the amount of interest such Class would
have been entitled to receive without regard to the Net WAC Cap on such Payment
Date, over (b) the amount of interest that such Class was entitled to receive on
such Payment Date because the applicable Note Rate was calculated at the Net WAC
Cap; and
(2) the Interest Carry Forward Amount for all previous Payment Dates for
such Class not previously paid, together with interest thereon at a rate equal
to the Note Rate for such Payment Date.
With respect to any Payment Date and the Class A-1 Notes, the sum of: (1)
the excess of:
o if on such Payment Date the Note Rate for the Class A-1 Notes is
limited to the Class A-1 Net Funds Cap, the amount of interest
that the Class A-1 Notes would have been entitled to receive on
such Payment Date had the applicable Note Rate been calculated as
a per annum rate equal to the lesser of (a) One-Month LIBOR plus
the related Note Margin and (b) 10.00%, over
o the amount of interest that the Class A-1 Notes were entitled to
receive on such Payment Date because the applicable Note Rate was
calculated at the Class A-1 Net Funds Cap; and
(2) the Interest Carry Forward Amount for the Class A-1 Notes for all
previous Payment Dates not previously paid, together with interest thereon at a
rate equal to the applicable Note Rate for such Payment Date.
For any Payment Date and the Class A-IO Notes, the sum of (1) if on such
Payment Date the Note Rate on the Class A-IO Notes is limited by the Available
Funds Rate for such Payment Date, the excess of the amount of interest that the
Class A-IO Notes would have been entitled to receive on such Payment Date had
the applicable Note Rate been calculated as a per annum rate equal to 6.00%,
over the amount of interest that the Class A-IO Notes were entitled to receive
on such Payment Date because the applicable Note Rate was limited by the
Available Funds Rate for such Payment Date; and (2) the Interest Carry Forward
Amount for all previous Payment Dates for such the Class A-IO Notes not
previously paid, together with interest thereon at a rate equal to the
applicable Note Rate for such Payment Date.
Interest Collections: With respect to any Payment Date, the sum of (i)
the portion of all scheduled Monthly Payments on the Mortgage Loans received or
advanced and applied to interest during the related Collection Period, minus the
Servicing Fee for the related Collection Period, (ii) the portion of all
prepayments, Insurance Proceeds and Net Liquidation Proceeds allocable to
interest pursuant to the terms of the Mortgage Notes, reduced by the Servicing
Fee for the related Collection Period, (iii) the interest portion of the
Repurchase Price for any Deleted Loans paid by the Seller or GMACM during the
related Collection Period and the cash purchase price paid in connection with
any optional purchase of the Mortgage Loans by the Servicer, and (iv) any
amounts withdrawn from the Capitalized Interest Account and deposited to the
Note Payment Account for such Payment Date pursuant to Section 3.18(b) of the
Servicing Agreement. The terms of the related Mortgage Note shall determine the
portion of each payment in respect of each Mortgage Loan that constitutes
principal or interest.
Interest Coverage Amount: The amount to be paid from proceeds received
from the sale of the Notes for deposit into the Capitalized Interest Account
pursuant to Section 3.18 of the Servicing Agreement on the Closing Date, which
amount initially shall be $3,444,705, and thereafter, shall be the amount
computed in accordance with Section 3.18 of the Servicing Agreement.
Interest Period: With respect to any Payment Date and each Class of
Notes, other than the Class A-1 Notes, the calendar month preceding such Payment
Date. With respect to any Payment Date and the Class A-1 Notes, other than the
first Payment Date, the period commencing on the Payment Date in the month
immediately preceding the month in which such Payment Date occurs and ending on
the day preceding such Payment Date, and in the case of the first Payment Date,
the period commencing on the Closing Date and ending on the day preceding the
first Payment Date.
Issuer or Trust: The GMACM Home Equity Loan Trust 2004-HE5, a Delaware
statutory trust, or its successor in interest.
Issuer Order or Issuer Request: A written order or request signed in the
name of the Issuer by any one of its Authorized Officers and delivered to the
Indenture Trustee.
LIBOR Business Day: Any day other than (i) a Saturday or a Sunday or
(ii) a day on which banking institutions in the city of London, England are
required or authorized by law to be closed.
Lien: Any mortgage, deed of trust, security interest, pledge,
conveyance, hypothecation, assignment, participation, deposit arrangement,
encumbrance, lien (statutory or other), preference, priority right or interest
or other security agreement or preferential arrangement of any kind or nature
whatsoever, including, without limitation, any conditional sale or other title
retention agreement, any financing lease having substantially the same economic
effect as any of the foregoing and the filing of any financing statement under
the UCC (other than any such financing statement filed for informational
purposes only) or comparable law of any jurisdiction to evidence any of the
foregoing; provided, however, that any assignment pursuant to Section 6.02 of
the Servicing Agreement shall not be deemed to constitute a Lien.
Liquidated Mortgage Loan: With respect to any Payment Date, any Mortgage
Loan in respect of which the Servicer has determined, in accordance with the
servicing procedures specified in the Servicing Agreement, as of the end of the
related Collection Period that substantially all Liquidation Proceeds which it
reasonably expects to recover, if any, with respect to the disposition of the
related REO Property have been recovered.
Liquidation Expenses: All out-of-pocket expenses (exclusive of overhead)
incurred by or on behalf of the Servicer in connection with the liquidation of
any Mortgage Loan and not recovered under any insurance policy, including legal
fees and expenses, any unreimbursed amount expended respecting such Mortgage
Loan and any related and unreimbursed expenditures for real estate property
taxes or for property restoration, preservation or insurance against casualty
loss or damage.
Liquidation Loss Amount: With respect to any Payment Date and any
Mortgage Loan that became a Liquidated Mortgage Loan during the related
Collection Period, the unrecovered portion of the Principal Balance of such
Mortgage Loan and any unpaid accrued interest thereon at the end of such
Collection Period, after giving effect to the Net Liquidation Proceeds applied
in reduction of such Principal Balance.
Liquidation Loss Distribution Amount: With respect to any Payment Date,
the aggregate of (A) 100% of the Liquidation Loss Amounts on such Payment Date,
plus (B) any Liquidation Loss Distribution Amounts remaining undistributed from
any preceding Payment Date, provided that any such Liquidation Loss Distribution
Amount remaining undistributed from any preceding Payment Date shall not be
distributed to the extent that it was paid by means of a draw on the Policy or
was reflected in the reduction of the Overcollateralization Amount.
Liquidation Proceeds: Proceeds (including Insurance Proceeds) if any
received in connection with the liquidation of any Mortgage Loan or related REO
Property, whether through trustee's sale, foreclosure sale or otherwise.
Loan Rate: With respect to any Mortgage Loan and any day, the per annum
rate of interest applicable under the related Mortgage Note.
Lost Note Affidavit: With respect to any Mortgage Loan as to which the
original Mortgage Note has been permanently lost or destroyed and has not been
replaced, an affidavit from the Seller certifying that the original Mortgage
Note has been lost, misplaced or destroyed (together with a copy of the related
Mortgage Note, if available).
LT1 Principal Distribution Amount: For any Payment Date, the excess, if
any, of the Class LT1 Principal Reduction Amount for such Payment Date over the
principal Liquidation Loss Amounts allocated to the REMIC II Regular Interest
LT1 on such Payment Date.
LT2 Principal Distribution Amount: For any Payment Date, the excess, if
any, of the Class LT2 Principal Reduction Amount for such Payment Date over the
principal Liquidation Loss Amounts allocated to the REMIC II Regular Interest
LT2 on such Payment Date.
LT3 Principal Distribution Amount: For any Payment Date, the excess, if
any, of the Class LT3 Principal Reduction Amount for such Payment Date over the
principal Liquidation Loss Amounts allocated to the REMIC II Regular Interest
LT3 on such Payment Date.
LT4 Principal Distribution Amount: For any Payment Date, the excess, if
any, of the Class LT4 Principal Reduction Amount for such Payment Date over the
principal Liquidation Loss Amounts allocated to the REMIC II Regular Interest
LT4 on such Payment Date.
Margin: With respect to the Class A-1 Notes, 0.14%.
MERS: Mortgage Electronic Registration Systems, Inc., a corporation
organized and existing under the laws of the State of Delaware, or any successor
thereto.
MERS(R) System: The system of recording transfers of Mortgages
electronically maintained by MERS.
MIN: The Mortgage Identification Number for Mortgage Loans registered
with MERS on the MERS(R) System.
MOM Loan: With respect to any Mortgage Loan, MERS acting as the
mortgagee of such Mortgage Loan, solely as nominee for the originator of such
Mortgage Loan and its successors and assigns, at the origination thereof.
Monthly Payment: With respect to any Mortgage Loan (including any REO
Property) and any Due Date, the payment of principal and interest due thereon in
accordance with the terms of such Mortgage Loan.
Moody's: Xxxxx'x Investors Service, Inc., or its successor in interest.
Mortgage: The mortgage, deed of trust or other instrument creating a
first or second lien on an estate in fee simple interest in real property
securing a Mortgage Loan.
Mortgage File: With respect to each Mortgage Loan:
(i) the original Mortgage Note 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 Mortgage Note has been permanently lost
or destroyed and has not been replaced, a Lost Note Affidavit;
(ii) the original Mortgage, noting the presence of the MIN of the
Mortgage Loan, if the Mortgage is registered on the MERS(R) System, and language
indicating that the Mortgage Loan is a MOM Loan if the Mortgage Loan is a MOM
Loan, 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) unless the Mortgage Loan is registered on the MERS(R) System,
original 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, N.A., as Indenture Trustee under that certain Indenture dated
as of March 30, 2004, for GMACM Home Equity Loan Trust 2004-HE5, Home Equity
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 (or to MERS, if the Mortgage Loan is registered on the
MERS(R) System, and which notes the presence of a MIN), 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;
and
(vi) any documents required to be added to such documents pursuant to
the Purchase Agreement, the Trust Agreement or the Servicing Agreement.
It is understood that the Mortgage File (other than item (i) above) may
be retained in microfilm, microfiche, optical storage or magnetic media in lieu
of hard copy; provided, that with respect to any Mortgage Loan not registered on
the MERS(R) System, the original assignment of Mortgage described in clause
(iii) above shall be retained in the Mortgage File.
Mortgage Loan Schedule: The initial schedule of Initial Mortgage Loans
as of the Cut-Off Date set forth in Exhibit A of the Servicing Agreement, and as
of each Subsequent Cut-Off Date, any Subsequent Mortgage Loans, which schedule
sets forth as to each Mortgage Loan the (i) Cut-Off Date Principal Balance, (ii)
loan number, (iii) lien position of the related Mortgage, (iv) original term to
maturity of the related Mortgage Note, (v) date of the related Mortgage Note,
(vi) maturity date of the related Mortgage Note, (vii) Appraised Value of the
related Mortgaged Property, (viii) unpaid principal balance of a mortgage loan
secured by a lien senior to the Mortgage Loan, (ix) CLTV, (x) debt-to-income
ratio of the related Mortgagor, and (xi) number of residential units on the
related Mortgaged Property.
Mortgage Loans: At any time, all Initial Mortgage Loans and Subsequent
Mortgage Loans, if any, together with all monies due or to become due thereunder
or the Related Documents, and that remain subject to the terms thereof.
Mortgage Note: With respect to a Mortgage Loan, the promissory note
pursuant to which the related Mortgagor agrees to pay the indebtedness evidenced
thereby and secured by the related Mortgage as modified or amended.
Mortgaged Property: The underlying property, including real property and
improvements thereon, securing a Mortgage Loan.
Mortgagor: The obligor or obligors under a Mortgage Note.
Net Liquidation Proceeds: With respect to any Liquidated Mortgage Loan,
Liquidation Proceeds net of Liquidation Expenses (but not including the portion,
if any, of such amount that exceeds the Principal Balance of, plus accrued and
unpaid interest on, such Mortgage Loan at the end of the Collection Period
immediately preceding the Collection Period in which such Mortgage Loan became a
Liquidated Mortgage Loan).
Net Loan Rate: With respect to any Mortgage Loan and Payment Date, the
Loan Rate of the Mortgage Loan applicable to the Monthly Payment due during the
related Collection Period, net of the Servicing Fee Rate and the Premium
Percentage for such Mortgage Loan on such Payment Date.
Net WAC Cap: With respect to (A) the December 2004 Payment Date through
and including the May 2007 Payment Date, a per annum rate equal to (a) the
Weighted Average Net Loan Rate of the Mortgage Loans, as of the first day of the
month preceding the month in which such Payment Date occurs, minus (b) the
product of (i) the Note Rate for the Class A-IO Notes for such Payment Date and
(ii) a fraction, the numerator of which is the Notional Amount of the Class A-IO
Notes immediately prior to such Payment Date and the denominator of which is the
aggregate Principal Balance of the Mortgage Loans as of the first day of the
month preceding the month in which such Payment Date occurs, and (B) each
Payment Date thereafter, a per annum rate equal to the Weighted Average Net Loan
Rate of the Mortgage Loans as of the first day of the month preceding the month
in which such Payment Date occurs, but in any event not less than 0.00%.
Non-United States Person: Any Person other than a United States Person.
Note Balance: With respect to any Payment Date and any Class of Notes,
other than the Class A-IO Notes, the Initial Note Balance thereof less the
aggregate of (a) all payments of principal thereon prior to such Payment Date
and (b) any reductions in the Note Balance thereof in connection with
allocations of Liquidation Loss Amounts thereto pursuant to Section 3.05(c) of
the Indenture.
Noteholder: The Person in whose name a Note is registered in the Note
Register, except that, any Note registered in the name of the Depositor, the
Issuer or the Indenture Trustee or any Affiliate of any of them shall be deemed
not to be outstanding and the registered holder will not be considered a
Noteholder for purposes of giving any request, demand, authorization, direction,
notice, consent or waiver under the Indenture or the Trust Agreement; provided,
that in determining whether the Indenture Trustee shall be protected in relying
upon any such request, demand, authorization, direction, notice, consent or
waiver, only Notes that the Indenture Trustee or the Owner Trustee knows to be
so owned shall be so disregarded. Owners of Notes that have been pledged in good
faith may be regarded as Noteholders if the pledgee thereof establishes to the
satisfaction of the Indenture Trustee or the Owner Trustee such pledgee's right
so to act with respect to such Notes and that such pledgee is not the Issuer,
any other obligor on the Notes or any Affiliate of any of the foregoing Persons.
Note Owner or Owner: The Beneficial Owner of a Note.
Note Payment Account: The account established by the Indenture Trustee
pursuant to Section 8.02 of the Indenture and Section 5.01 of the Servicing
Agreement. Amounts deposited in the Note Payment Account will be distributed by
the Indenture Trustee in accordance with Section 3.05 of the Indenture.
Note Payment Account Deposit Date: As to any Payment Date, the Business
Day prior thereto.
Note Rate: With respect to each Interest Period and the related Payment
Date, a per annum rate equal to with respect to:
(a) the Class A-1 Notes, the least of:
o One-Month LIBOR plus the related Margin;
o the Class A-1 Net Funds Cap; and
o 10.00%;
(b) the Class A-2 Notes, the lesser of (a) 3.685% and (b) the Net WAC
Cap;
(c) the Class A-3 Notes, the lesser of (a) 3.970% and (b) the Net WAC
Cap;
(d) the Class A-4 Notes, the lesser of (a) 4.342% and (b) the Net WAC
Cap;
(e) the Class A-5 Notes, the lesser of (a) 4.865% plus, with respect to
each Payment Date occurring on or after the second Payment Date following the
first possible Optional Call Date, 1.00% and (b) the Net WAC Cap;
(f) the Class A-6 Notes, the lesser of (a) 4.388% plus, with respect to
each Payment Date occurring on or after the second Payment Date following the
first possible Optional Call Date, 1.00% and (b) the Net WAC Cap; and
(g) the Class A-IO Notes, on or prior to the Payment Date in May 2007,
the lesser of (a) 6.00% and (b) the Available Funds Rate for such Payment Date
and after the Payment Date in May 2007, 0.00%.
Note Register: The register maintained by the Note Registrar in which
the Note Registrar shall provide for the registration of Notes and of transfers
and exchanges of Notes.
Note Registrar: The Indenture Trustee, in its capacity as Note Registrar.
Notes: Any one of the Class A-1 Notes, Class A-2 Notes, Class A-3 Notes,
Class A-4 Notes, Class A-5 Notes, Class A-6 Notes or Class A-IO Notes issued and
outstanding at any time pursuant to the Indenture.
Notional Amount: With respect to the Class A-IO Notes and any Payment
Date, the lesser of (a) the Pool Balance prior to giving effect to distributions
to be made on such Payment Date and (b) the applicable amount set forth below
PAYMENT DATES NOTIONAL AMOUNT
December 2004 through and including May 2005......... $100,000,000
June 2005 through and including November 2005........ $85,000,000
December 2005 through and including May 2006......... $70,000,000
June 2006 through and including November 2006........ $55,000,000
December 2006 through and including May 2007......... $35,000,000
-------------------------------------------------------------------------------
After the Payment Date in May 2007, the Notional Amount for the Class
A-IO Notes will equal $0.00.
With respect to the Class SB Certificates and any Payment Date, the
aggregate of the Class Principal Balances for all Classes of REMIC II Regular
Interests before giving effect to payments to be made and the allocation of
Liquidation Loss Amounts to occur on such Payment Date.
Officer's Certificate: With respect to the Servicer, a certificate
signed by the President, Managing Director, a Director, a Vice President or an
Assistant Vice President, of the Servicer and delivered to the Indenture
Trustee. With respect to the Issuer, a certificate signed by any Authorized
Officer of the Issuer, under the circumstances described in, and otherwise
complying with, the applicable requirements of Section 10.01 of the Indenture,
and delivered to the Indenture Trustee. Unless otherwise specified, any
reference in the Indenture to an Officer's Certificate shall be to an Officer's
Certificate of any Authorized Officer of the Issuer.
One-Month LIBOR: As to any Interest Period for the Class A-1 Notes, (a)
for any Interest Period other than the first Interest Period, the rate for
United States dollar deposits for one month that appears on the Telerate Screen
Page 3750 as of 11:00 a.m., London, England time, on the second LIBOR Business
Day prior to the first day of that Interest Period or (b) with respect to the
first Interest Period, the rate for United States dollar deposits for one month
that appears on the Telerate Screen Page 3750 as of 11:00 a.m., London, England
time, two LIBOR Business Days prior to the Closing Date. If such rate does not
appear on such page, LIBOR will be the Reference Bank Rate determined by the
Indenture Trustee. If no such rate appears and the Indenture Trustee is unable
to determine a Reference Bank Rate, LIBOR will be LIBOR applicable to the
preceding Interest Period.
Opinion of Counsel: A written opinion of counsel of a law firm
reasonably acceptable to the recipient thereof. Any Opinion of Counsel for the
Servicer may be provided by in-house counsel for the Servicer if reasonably
acceptable.
Optional Call Date: Any Payment Date on which the Pool Balance is less
than 10% of the Initial Pool Balance.
Original Pre-Funded Amount: The amount deposited from the proceeds of
the sale of the Securities into the Pre-Funding Account on the Closing Date,
which amount is $ 166,854,220.90.
Outstanding: With respect to the Notes, as of the date of determination,
all Notes theretofore executed, authenticated and delivered under this Indenture
except:
(i) Notes theretofore cancelled by the Note Registrar or
delivered to the Indenture Trustee for cancellation; and
(ii) Notes in exchange for or in lieu of which other Notes have
been executed, authenticated and delivered pursuant to the Indenture
unless proof satisfactory to the Indenture Trustee is presented that any
such Notes are held by a holder in due course.
provided, however, that for purposes of effectuating the Enhancer's right of
subrogation as set forth in Section 4.12 of the Indenture only, all Notes that
have been paid with funds provided under the Policy shall be deemed to be
Outstanding until the Enhancer has been reimbursed with respect thereto.
Overcollateralization Amount: With respect to any Payment Date, the
amount (but not less than zero), if any, by which (a) the Pool Balance after
applying payments received in the related Collection Period, exceeds (b) the
aggregate Note Balance of the Notes on such Payment Date after application of
the Principal Distribution Amount and Liquidation Loss Distribution Amounts for
such date. The Overcollateralization Amount is subject to reduction on any
Payment Date as described in Section 3.05(c) of the Indenture.
Overcollateralization Floor: An amount equal to 0.50% of the Initial Pool
Balance.
Overcollateralization Increase Amount: With respect to any Payment Date,
an amount equal to the lesser of (i) the amount remaining in the Note Payment
Account following distributions pursuant to Section 3.05(a)(vi) of the Indenture
and (ii) the amount necessary to increase the Overcollateralization Amount to
the Required Overcollateralization Amount.
Overcollateralization Release Amount: With respect to any date of
determination, the excess, if any, of the Overcollateralization Amount over the
Required Overcollateralization Amount.
Owner Trust: GMACM Home Equity Loan Trust 2004-HE5, created by the
Certificate of Trust pursuant to the Trust Agreement.
Owner Trustee: Wilmington Trust Company, not in its individual capacity
but solely as owner trustee, and its successors and assigns or any successor
Owner Trustee appointed pursuant to the terms of the Trust Agreement.
Paying Agent: Any paying agent or co-paying agent appointed pursuant to
Section 3.03 of the Indenture, which initially shall be the Indenture Trustee.
Payment Date: The 25th day of each month, or if such day is not a
Business Day, then the next Business Day.
Percentage Interest: With respect to any Note and Payment Date, the
percentage obtained by dividing the Note Balance or Notional Amount, as
applicable, of such Note by the aggregate Note Balance or Notional Amount, as
applicable. of all Notes of that Class prior to such Payment Date. With respect
to any Certificate and any Payment Date, the Percentage Interest stated on the
face of such Certificate.
Permitted Investments: One or more of the following:
(i) obligations of or guaranteed as to principal and interest by the
United States or any agency or instrumentality thereof when such obligations are
backed by the full faith and credit of the United States;
(ii) repurchase agreements on obligations specified in clause (i) above
maturing not more than one month from the date of acquisition thereof; provided,
that the unsecured short-term debt obligations of the party agreeing to
repurchase such obligations are at the time rated by each Rating Agency in its
highest short-term rating category available;
(iii) federal funds, certificates of deposit, demand deposits, time
deposits and bankers' acceptances (which shall each have an original maturity of
not more than 90 days and, in the case of bankers' acceptances, shall in no
event have an original maturity of more than 365 days or a remaining maturity of
more than 30 days) denominated in United States dollars of any U.S. depository
institution or trust company incorporated under the laws of the United States or
any state thereof or of any domestic branch of a foreign depository institution
or trust company; provided, that the short-term debt obligations of such
depository institution or trust company (or, if the only Rating Agency is
Standard & Poor's, in the case of the principal depository institution in a
depository institution holding company, debt obligations of the depository
institution holding company) at the date of acquisition thereof have been rated
by each Rating Agency in its highest short-term rating category available; and
provided further, that if the only Rating Agency is Standard & Poor's and if the
depository or trust company is a principal subsidiary of a bank holding company
and the debt obligations of such subsidiary are not separately rated, the
applicable rating shall be that of the bank holding company; and provided
further, that if the only Rating Agency is Standard & Poor's and the original
maturity of such short-term debt obligations of a domestic branch of a foreign
depository institution or trust company shall exceed 30 days, the short-term
rating of such institution shall be A-1+;
(iv) commercial paper (having original maturities of not more than 365
days) of any corporation incorporated under the laws of the United States or any
state thereof which on the date of acquisition has been rated by each Rating
Agency in its highest short-term rating category available; provided, that such
commercial paper shall have a remaining maturity of not more than 30 days;
(v) a money market fund or a qualified investment fund (including
without limitation, any such fund for which the Indenture Trustee or an
Affiliate of the Indenture Trustee acts as an advisor or a manager) rated by
each Rating Agency in one of its two highest long-term rating categories
available; and
(vi) other obligations or securities that are acceptable to each Rating
Agency and the Enhancer as a Permitted Investment hereunder and will not cause a
Rating Event ;
provided, however, that no instrument shall be a Permitted Investment if it
represents, either (1) the right to receive only interest payments with respect
to the underlying debt instrument or (2) the right to receive both principal and
interest payments derived from obligations underlying such instrument and the
principal and interest payments with respect to such instrument provide a yield
to maturity greater than 120% of the yield to maturity at par of such underlying
obligations. References herein to the highest long-term rating category
available shall mean AAA in the case of Standard & Poor's and Aaa in the case of
Moody's, and references herein to the highest short-term rating category
available shall mean A-1+ in the case of Standard & Poor's and P-1 in the case
of Moody's.
Permitted Transferee: Any Transferee of a Class R Certificate, other
than a Disqualified Organization or Non-United States Person.
Person: Any legal individual, corporation, partnership, joint venture,
association, joint-stock company, limited liability company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.
Plan: Any employee benefit plan or certain other retirement plans and
arrangements, including individual retirement accounts and annuities, Xxxxx
plans and bank collective investment funds and insurance company general or
separate accounts in which such plans, accounts or arrangements are invested,
that are subject to ERISA or Section 4975 of the Code, as described in Section
3.05 of the Trust Agreement.
Plan Assets: The meaning specified in Section 2510.3-101 of the
Department of Labor Regulations and as described in Section 3.05 of the Trust
Agreement.
Policy: The Surety Bond dated as of the Closing Date, Policy No. 04030047,
issued by the Enhancer.
Pool Balance: With respect to any date, the aggregate Principal Balance of
all Mortgage Loans as of such date and (during the Pre-Funding Period) the
Pre-Funded Amount.
Pre-Funded Amount: With respect to any date of determination during the
Pre-Funding Period, the amount on deposit in the Pre-Funding Account.
Pre-Funding Account: The account established and maintained pursuant to
Section 3.17 of the Servicing Agreement.
Pre-Funding Period: The period commencing on the Closing Date until the
earliest of (i) the date on which the amount on deposit in the Pre-Funding
Account is less than $100,000, (ii) February 28, 2005 or (iii) the occurrence of
a Servicing Default.
Predecessor Note: With respect to any Note, every previous Note
evidencing all or a portion of the same debt as that evidenced by such Note;
and, for the purpose of this definition, any Note authenticated and delivered
under Section 4.03 of the Indenture in lieu of a mutilated, lost, destroyed or
stolen Note shall be deemed to evidence the same debt as such mutilated, lost,
destroyed or stolen Note.
Premium: The amount of premium calculated at the Premium Percentage due
to the Enhancer in accordance with the terms of the Insurance Agreement.
Premium Percentage: As set forth in the Insurance Agreement.
Principal Balance: With respect to any Mortgage Loan, other than a
Liquidated Mortgage Loan, and as of any day, the related Cut-Off Date Principal
Balance, minus all collections credited as principal in respect of any such
Mortgage Loan in accordance with the related Mortgage Note and applied in
reduction of the Principal Balance thereof. For purposes of this definition, a
Liquidated Mortgage Loan shall be deemed to have a Principal Balance equal to
the Principal Balance of the related Mortgage Loan immediately prior to the
final recovery of substantially all related Liquidation Proceeds and a Principal
Balance of zero thereafter.
Principal Collection Distribution Amount: For any Payment Date, the
total Principal Collections for such Payment Date less any Overcollateralization
Release Amount for such Payment Date; provided that the Principal Collection
Distribution Amount for any Payment Date shall not be less than $0.
Principal Collections: With respect to any Payment Date, an amount equal
to the sum of (i) the principal portion of all scheduled Monthly Payments on the
Mortgage Loans received during the related Collection Period, as reported by the
Servicer or the related Subservicer; (ii) the principal portion of all proceeds
of the repurchase of any Mortgage Loans (or, in the case of a substitution, any
Substitution Adjustment Amounts) during the related Collection Period; (iii) the
principal portion of all other unscheduled collections received on the Mortgage
Loans during the related Collection Period (or deemed to be received during the
related Collection Period), including, without limitation, full and partial
Principal Prepayments made by the respective Mortgagors, Insurance Proceeds, Net
Liquidation Proceeds and Subsequent Net Recovery Amounts, to the extent not
previously distributed; and (iv) on the Payment Date immediately following the
end of the Pre-Funding Period, any amount transferred from the Pre-Funding
Account to the Note Payment Account in accordance with Section 3.17 of the
Servicing Agreement.
Principal Prepayment: Any payment of principal made by the Mortgagor on
a Mortgage Loan which is received in advance of its scheduled Due Date and which
is not accompanied by an amount of interest representing scheduled interest due
on any date or dates in any month or months subsequent to the month of
prepayment.
Proceeding: Any suit in equity, action at law or other judicial or
administrative proceeding.
Program Guide: The GMACM Home Equity Servicing Guidelines, as in effect
from time to time.
Purchase Agreement: The mortgage loan purchase agreement dated as of the
Closing Date, among the Sellers, the Purchaser, the Issuer and the Indenture
Trustee.
Purchase Price: The amounts specified in Section 2.3(a) of the Purchase
Agreement.
Purchaser: Residential Asset Mortgage Products, Inc., as purchaser under
the Purchase Agreement.
Rating Agency: Each of Moody's and Standard & Poor's, or, if any such
organization or a successor thereto is no longer in existence, such nationally
recognized statistical rating organization, or other comparable Person,
designated by the Depositor, notice of which designation shall be given to the
Indenture Trustee. References herein to the highest short term rating category
of a Rating Agency shall mean A-1+ in the case of Standard & Poor's and P-1 in
the case of Moody's; and in the case of any other Rating Agency, shall mean such
equivalent ratings. References herein to the highest long-term rating category
of a Rating Agency shall mean "AAA" in the case of Standard & Poor's and "Aaa"
in the case of Moody's; and in the case of any other Rating Agency, shall mean
such equivalent rating.
Rating Event: The qualification, reduction or withdrawal by a Rating
Agency of its then-current rating of the Notes.
Record Date: With respect to any Payment Date and the Class A-1 Notes,
the close of business on the last Business Day preceding such Payment Date. With
respect to any Payment Date, other than the first Payment Date, and each Class
of Notes, other than the Class A-1 Notes, the last day of the calendar month
preceding such Payment Date, and in the case of the first Payment Date, the
Closing Date.
Recovery Fee: A customary fee charged for the collection of Liquidation
Proceeds on any Mortgage Loan after the date that such Mortgage Loan became a
Liquidated Mortgage Loan.
Reference Bank Rate: With respect to any Interest Period, the arithmetic
mean (rounded upwards, if necessary, to the nearest one sixteenth of one
percent) of the offered rates for United States dollar deposits for one month
which are offered by the Reference Banks as of 11:00 a.m., London, England time,
on the second LIBOR Business Day prior to the first day of such Interest Period
to prime banks in the London interbank market in amounts approximately equal to
the sum of the outstanding Note Balance of the Class A-1 Notes; provided, that
at least two Reference Banks provide such rate. If fewer than two such rates are
provided, the Reference Bank Rate will be the arithmetic mean of the rates
quoted by one or more major banks in New York City, selected by the Indenture
Trustee after consultation with the Servicer and the Enhancer, as of 11:00 a.m.,
New York time, on such date for loans in U.S. Dollars to leading European banks
for a period of one month in amounts approximately equal to the aggregate Note
Balance of the Class A-1 Notes.
Reference Banks: Barclays Bank plc, National Westminster Bank and Deutsche
Bank, A.G.
Regular Interest: Any of the REMIC I Regular Interests, REMIC II Regular
Interests or REMIC III Regular Interests.
Related Class: A Class of REMIC III Regular Interests and a class of Notes
are related if, and only if, they bear the same Letter/number combination
designating their Class, e.g. the REMIC III Regular Interest A-3 is related to
the Class A-3 Notes.
Related Documents: With respect to each Mortgage Loan, the documents
contained in the related Mortgage File.
Relief Act Shortfalls: With respect to any Payment Date, for any
Mortgage Loan as to which there has been a reduction in the amount of interest
collectible thereon for the related Collection Period as a result of the
application of the Servicemembers Civil Relief Act or any similar legislation or
regulations, the shortfall, if any, equal to (i) one month's interest on the
Principal Balance of such Mortgage Loan at the applicable Loan Rate, over (ii)
the interest collectible on such Mortgage Loan during such Collection Period.
REMIC: A "real estate mortgage investment conduit" within the meaning of
Section 860D of the Code.
REMIC Administrator: Xxxxx Fargo Bank, N.A.; provided that if the REMIC
Administrator is found by a court of competent jurisdiction to no longer be able
to fulfill its obligations as REMIC Administrator under this Agreement the
Servicer or Indenture Trustee acting as Servicer shall appoint a successor REMIC
Administrator, subject to assumption of the REMIC Administrator obligations
under this Agreement.
REMIC I: The segregated pool of assets in the Trust Estate with respect
to which a REMIC election is to be made.
REMIC I Certificates: The Class R-I Certificates and the REMIC I Regular
Interests.
REMIC I Liquidation Loss Amounts: For any Payment Date, Liquidation Loss
Amounts on the Mortgage Loans for the related Collection Period shall be
allocated as follows: Liquidation Loss Amounts shall be allocated to the Class
I-LTA and LTB REMIC I Regular Interests in reduction of the principal balances
thereof to the extent required to reduce the aggregate principal balance of the
Class I-LTA and LTB REMIC I Regular Interests to the aggregate principal balance
of the Mortgage Loans with any remaining Liquidation Loss Amounts treated as
reducing accrued interest on the Class I-LTA and LTB REMIC I Regular Interests.
Liquidation Loss Amounts treated as reducing the principal balance of the Class
I-LTA and LTB REMIC I Regular Interests shall be allocated, first, to the Class
I- LTA REMIC I Regular Interests until the Principal Balance of such Regular
Interest shall have been reduced to zero, and, thereafter, to the Class I-LTB
REMIC I Regular Interests successively in ascending numerical order.
REMIC I Regular Interests: The Class I-LTA REMIC I Regular Interest and
Class I-LTB REMIC I Regular Interest having the properties set forth in the
following table and elsewhere herein:
------------------------- ----------------------- ----------------------- -----------------------
REMIC I LATEST
DESIGNATION REMITTANCE INITIAL POSSIBLE
DATE RATE BALANCE MATURITY
------------------------- ----------------------- ----------------------- -----------------------
------------------------- ----------------------- ----------------------- -----------------------
$600,000,000.00
I-LTA Variable (1)(2) September 25, 2034
------------------------- ----------------------- ----------------------- -----------------------
------------------------- ----------------------- ----------------------- -----------------------
I-LTB1 Variable(1) $ 15,000,000.00 September 25, 2034
------------------------- ----------------------- ----------------------- -----------------------
------------------------- ----------------------- ----------------------- -----------------------
I-LTB2 Variable(1) $ 15,000,000.00 September 25, 2034
------------------------- ----------------------- ----------------------- -----------------------
------------------------- ----------------------- ----------------------- -----------------------
I-LTB3 Variable(1) $ 15,000,000.00 September 25, 2034
------------------------- ----------------------- ----------------------- -----------------------
------------------------- ----------------------- ----------------------- -----------------------
I-LTB4 Variable(1) $ 20,000,000.00 September 25, 2034
------------------------- ----------------------- ----------------------- -----------------------
------------------------- ----------------------- ----------------------- -----------------------
I-LTB5 Variable(1) $ 35,000,000.00 September 25, 2034
------------------------- ----------------------- ----------------------- -----------------------
(1) Calculated in accordance with the definition of "REMIC I Remittance Rate"
herein.
(2) The Class LTA REMIC I Regular Interest will also be entitled to receive
amounts in the nature of prepayment charges received with respect to the
Mortgage Loans, provided that this payment shall not be deemed to reduce
the principal balance of the Class I-LT1 REMIC I Regular Interest.
REMIC I Regular Interest LTB: The Class I-LTB1 REMIC I Regular Interest,
the Class I-LTB2 REMIC I Regular Interest, the Class I-LTB3 REMIC I Regular
Interest, the Class I-LTB4 REMIC I Regular Interest and the Class I-LTB5 REMIC I
Regular Interest.
REMIC I Remittance Rate: With respect to any Payment Date and any REMIC
I Regular Interest, a per annum rate equal to the weighted average of the Net
Loan Rates of the Loans applicable for the Interest Period for such Payment
Date.
REMIC II: The segregated pool of assets subject hereto, constituting a
portion of the primary trust created hereby and to be administered hereunder,
with respect to which a separate REMIC election is to be made, consisting of the
REMIC I Regular Interests.
REMIC II Liquidation Loss Amounts: For any Payment Date, Liquidation
Loss Amounts on the Loans for the related Collection Period shall be allocated
as follows: Liquidation Loss Amounts shall be allocated pro rata to the REMIC II
Regular Interests LTA-IO to the extent, if any, that Liquidation Loss Amounts
for such Payment Date are allocated to the Class A-I-IO Notes. Any remaining
Liquidation Loss Amounts shall be allocated (i) to the REMIC II Regular Interest
LT2, REMIC II Regular Interest LT3 and REMIC II Regular Interest LT4 pro rata
according to their respective Principal Reduction Amounts, provided that such
allocation to each of the REMIC II Regular Interest LT2, REMIC II Regular
Interest LT3 and REMIC II Regular Interest LT4 shall not exceed their respective
Principal Reduction Amounts for such Payment Date, and (ii) any Liquidation Loss
Amounts not allocated to any of the REMIC II Regular Interest LT2, REMIC II
Regular Interest LT3 or REMIC II Regular Interest LT4 pursuant to the proviso of
clause (i) shall be allocated to the REMIC II Regular Interest LT1, until the
principal balance of such REMIC II Regular Interest LT1 shall have been reduced
to zero. If any Liquidation Loss Amounts for such Payment Date remain, such
amounts shall be allocated among the REMIC II Regular Interest LT2, REMIC II
Regular Interest LT3 and REMIC II Regular Interest LT4 pro rata according to
their respective principal balances after reduction by the Liquidation Loss
Amounts allocated to such REMIC II Regular Interests pursuant to the preceding
sentence.
REMIC II Regular Interests: REMIC II Regular Interests LTA-IO, LT1, LT2,
LT3 and LT4 having the properties set forth in the following table and elsewhere
herein:
------------------------- ----------------------- ----------------------- -----------------------
REMIC II INITIAL UNCERTIFIED LATEST
REMITTANCE PRINCIPAL POSSIBLE
DESIGNATION RATE BALANCE MATURITY DATE (4)
------------------------- ----------------------- ----------------------- -----------------------
------------------------- ----------------------- ----------------------- -----------------------
$699,879,309.91
LT1 Variable (1) September 25, 2034
------------------------- ----------------------- ----------------------- -----------------------
------------------------- ----------------------- ----------------------- -----------------------
LT2 Variable (1) $ 19,309.91 September 25, 2034
------------------------- ----------------------- ----------------------- -----------------------
------------------------- ----------------------- ----------------------- -----------------------
LT3 Variable (1) $ 50,690.09 September 25, 2034
------------------------- ----------------------- ----------------------- -----------------------
------------------------- ----------------------- ----------------------- -----------------------
LT4 Variable (1) $ 50,690.09 September 25, 2034
------------------------- ----------------------- ----------------------- -----------------------
------------------------- ----------------------- ----------------------- -----------------------
LTA-IO1 Variable(2)(3) $ 0.00 May 25, 2005
------------------------- ----------------------- ----------------------- -----------------------
------------------------- ----------------------- ----------------------- -----------------------
LTA-IO2 Variable(2)(3) $ 0.00 November 25, 2005
------------------------- ----------------------- ----------------------- -----------------------
------------------------- ----------------------- ----------------------- -----------------------
LTA-IO3 Variable(2)(3) $ 0.00 May 25, 2006
------------------------- ----------------------- ----------------------- -----------------------
------------------------- ----------------------- ----------------------- -----------------------
LTA-IO4 Variable(2)(3) $ 0.00 November 27, 2006
------------------------- ----------------------- ----------------------- -----------------------
------------------------- ----------------------- ----------------------- -----------------------
LTA-IO5 Variable(2)(3) $ 0.00 May 25, 2007
------------------------- ----------------------- ----------------------- -----------------------
(1) Calculated as provided in the definition of REMIC II Remittance Rate.
(2) Until the "latest possible maturity date" set forth in the last column
of this table, a per annum rate equal to 6.00% or the REMIC I Remittance
Rate, if less, and 0.00% thereafter.
(3) REMIC II Regular Interests LTA-IO will not have an Uncertificated
Principal Balance, but will accrue interest on its Uncertificated
Notional Amount outstanding from time to time which shall equal the
Uncertificated Principal Balance of REMIC I Regular Interest LTB with
the same numerical designation (the "Related REMIC I Regular Interest
LTB") for Distribution Dates on or before the Latest Possible Maturity
Date for such REMIC II Regular Interest LTA-IO, and thereafter shall be
$0.00.
(4) The "latest possible maturity date" (determined solely for purposes of
satisfying Treasury regulation Section 1.860G-1(a)(4)(iii)) for each
REMIC II Regular Interest shall be the Maturity Date.
REMIC II Regular Interest LT1: A regular interest in REMIC II, held as
an asset of REMIC III, that has an initial principal balance as set forth in the
table in the definition of "REMIC II Regular Interests," as reduced from time to
time, that bears interest at the related REMIC II Remittance Rate as set forth
in the table in the definition of "REMIC II Regular Interests."
REMIC II Regular Interest LT2: A regular interest in REMIC II, held as
an asset of REMIC III, that has an initial principal balance as set forth in the
table in the definition of "REMIC II Regular Interests," as reduced from time to
time, that bears interest at the related REMIC II Remittance Rate as set forth
in the table in the definition of "REMIC II Regular Interests."
REMIC II Regular Interest LT3: A regular interest in REMIC II, held as
an asset of REMIC III, that has an initial principal balance as set forth in the
table in the definition of "REMIC II Regular Interests," as reduced from time to
time, that bears interest at the related REMIC II Remittance Rate as set forth
in the table in the definition of "REMIC II Regular Interests."
REMIC II Regular Interest LT4: A regular interest in REMIC II, held as
an asset of REMIC III, that has an initial principal balance as set forth in the
table in the definition of "REMIC II Regular Interests," as reduced from time to
time, that bears interest at the related REMIC II Remittance Rate as set forth
in the table in the definition of "REMIC II Regular Interests."
REMIC II Regular Interest LTA-IO1: A regular interest in REMIC II, held
as an asset of REMIC III, that has a notional amount equal to the related
Uncertificated Notional Amount, that bears interest at the related REMIC II
Remittance Rate, and that has such other terms as are described herein. REMIC II
Regular Interest LTA-IO1 shall be treated as related to Class I-LTB1 REMIC I
Regular Interest.
REMIC II Regular Interest LTA-IO2: A regular interest in REMIC II, held
as an asset of REMIC III, that has a notional amount equal to the related
Uncertificated Notional Amount, that bears interest at the related REMIC II
Remittance Rate, and that has such other terms as are described herein. REMIC II
Regular Interest LTA-IO2 shall be treated as related to Class I-LTB2 REMIC I
Regular Interest.
REMIC II Regular Interest LTA-IO3: A regular interest in REMIC II, held
as an asset of REMIC III, that has a notional amount equal to the related
Uncertificated Notional Amount, that bears interest at the related REMIC II
Remittance Rate, and that has such other terms as are described herein. REMIC II
Regular Interest LTA-IO3 shall be treated as related to Class I-LTB3 REMIC I
Regular Interest.
REMIC II Regular Interest LTA-IO4: A regular interest in REMIC II, held
as an asset of REMIC III, that has a notional amount equal to the related
Uncertificated Notional Amount, that bears interest at the related REMIC II
Remittance Rate, and that has such other terms as are described herein. REMIC II
Regular Interest LTA-IO4 shall be treated as related to Class I-LTB4 REMIC I
Regular Interest.
REMIC II Regular Interest LTA-IO5: A regular interest in REMIC II, held
as an asset of REMIC III, that has a notional amount equal to the related
Uncertificated Notional Amount, that bears interest at the related REMIC II
Remittance Rate, and that has such other terms as are described herein. REMIC II
Regular Interest LTA-IO5 shall be treated as related to Class I-LTB5 REMIC I
Regular Interest.
REMIC II Remittance Rate: With respect to the Class LT1 and LT2 REMIC II
Regular Interests, the Net WAC Cap. With respect to Class LT3 REMIC II Regular
Interest, zero (0.00%) per annum. With respect to the Class LT4 REMIC II Regular
Interest, twice the Net WAC Cap. With respect to each REMIC II Regular Interest
LTA-IO, the rate defined in footnote (2) of the definition of REMIC II Regular
Interest.
REMIC III: The segregated pool of assets subject hereto, constituting a
portion of the primary trust created hereby and to be administered hereunder,
with respect to which a separate REMIC election is to be made, consisting of the
REMIC II Regular Interests.
REMIC III Liquidation Loss Amounts: On any Payment Date, Liquidation
Loss Amounts for the related Collection Period shall be allocated first to the
REMIC III Regular Interest SB-IO in reduction of the accrued and unpaid interest
thereon until such accrued and unpaid interest shall have been reduced to zero,
second to the REMIC III Regular Interest SB-PO in reduction of the Class
Principal Balance thereof until such Class Principal Balance shall have been
reduced to zero, third to the Class M notes in reverse numerical order in
reduction of the principal balance thereof and of accrued but unpaid interest
thereon until such amounts shall have been reduced to zero and fourth to the
Notes to the same extent, if any, that (i) amounts interest accrued on such
Notes since the prior Payment Date remain unpaid after distributions on such
Payment Date and (ii) the aggregate of the Class Principal Balances of the Notes
following distributions on such Payment Date exceed the aggregate principal
balance of the Loans by more than such excess, if any, after distributions on
the immediately prior Payment Date.
REMIC III Regular Interest SB-IO: A regular interest in REMIC III with
no entitlement to principal and entitled to (i) interest at the REMIC III
Regular Interest SB-IO Certificate Rate on the Class SB-IO Notional Amount and
(ii) payments of prepayment charges.
REMIC III Regular Interest SB-PO: A regular interest in REMIC III with
no entitlement to interest and entitled to principal in an amount equal to the
initial principal balance of the Class SB-I Certificates and any amounts in the
nature of prepayment charges received in connection with Loans, provided that
any payment of prepayment charges shall not be deemed to reduce the principal
balance of the REMIC III Regular Interest SB-PO.
REMIC III Regular Interest A-IO: A regular interest in REMIC III with no
entitlement to principal and entitled to interest accruing on the Class LTA-IO1,
Class LTA-IO2, Class LTA-IO3, Class LTA-IO4 and Class LTA-IO5 REMIC II Regular
Interests. The foregoing is equal to interest accruing on the Class A-IO
Notional Balance at a rate equal to the lesser of 6.00% per annum and the
Weighted Average Net Loan Rate.
REMIC III Regular Interests: Each Class of the Notes (other than the
Class A-IO Notes), the REMIC III Regular Interest A-IO and the REMIC III Regular
Interests SB-IO and SB-PO.
REMIC III Remittance Rate: With respect to each Class of Notes (other
than the Class A-IO Notes), the Note Rate for such Class. With respect to the
REMIC III Regular Interest A-IO, the lesser of 6% and the Weighted Average Net
Loan Rate. With respect to the REMIC III Regular Interest SB-PO, 0% per annum.
With respect to the REMIC III Regular Interest SB-IO the Certificate Rate
therefor.
REMIC Provisions: Provisions of the federal income tax law relating to
real estate mortgage investment conduits, which appear at Sections 860A through
860G of Subchapter M of Chapter 1 of the Code, and related provisions, and
temporary and final regulations (or, to the extent not inconsistent with such
temporary or final regulations, proposed regulations) and published rulings,
notices and announcements promulgated thereunder, as the foregoing may be in
effect from time to time.
Remittance Rate: The REMIC I Remittance Rate, REMIC II Remittance Rate or
REMIC III Remittance Rate, as applicable.
REO Property: A Mortgaged Property acquired by the Servicer through
foreclosure or deed in lieu of foreclosure in connection with a defaulted
Mortgage Loan.
Repurchase Event: With respect to any Mortgage Loan, either (i) a
discovery that, as of the Closing Date with respect to an Initial Mortgage Loan
or the related Subsequent Transfer Date with respect to any Subsequent Mortgage
Loan, the related Mortgage was not a valid lien on the related Mortgaged
Property subject only to (A) the lien of any prior mortgage indicated on the
Mortgage Loan Schedule, (B) the lien of real property taxes and assessments not
yet due and payable, (C) covenants, conditions, and restrictions, rights of way,
easements and other matters of public record as of the date of recording of such
Mortgage and such other permissible title exceptions as are customarily accepted
for similar loans and (D) other matters to which like properties are commonly
subject that do not materially adversely affect the value, use, enjoyment or
marketability of the related Mortgaged Property or (ii) with respect to any
Mortgage Loan as to which either Seller delivers an affidavit certifying that
the original Mortgage Note has been lost or destroyed, a subsequent default on
such Mortgage Loan if the enforcement thereof or of the related Mortgage is
materially and adversely affected by the absence of such original Mortgage Note.
Repurchase Price: With respect to any Mortgage Loan required to be
repurchased on any date pursuant to the Purchase Agreement or purchased by the
Servicer pursuant to the Servicing Agreement, an amount equal to the sum of (i)
100% of the Principal Balance thereof (without reduction for any amounts charged
off), (ii) unpaid accrued interest at the Loan Rate (or with respect to the last
day of the month in the month of repurchase, the Loan Rate will be the Loan Rate
in effect as of the second to last day in such month) on the outstanding
Principal Balance thereof from the Due Date to which interest was last paid by
the related Mortgagor to the first day of the month following the month of
purchase and (iii) in connection with any Mortgage Loan required to be
repurchased pursuant to Sections 2.1 or 3.1 of the Purchase Agreement, any costs
and damages incurred by the Trust Fund with respect to such Mortgage Loan in
connection with a breach of Section 3.1(b)(x) of the Purchase Agreement.
Required Insurance Policy: With respect to any Mortgage Loan, any
insurance policy which is required to be maintained from time to time under this
Agreement or the related Subservicing Agreement in respect of such Mortgage
Loan.
Required Overcollateralization Amount: As to any Payment Date on or
prior to the Payment Date in February 2005, $0. As to any Payment Date on or
after the Payment Date in March 2005 and prior to the Stepdown Date, an amount
equal to not less than 2.00% of the Initial Pool Balance. As to any Payment Date
on or after the Stepdown Date, the Required Overcollateralization Amount will be
equal to the greater of (I) the sum of an amount equal to (i) 2.00% of the
aggregate Principal Balance of the Mortgage Loans that are less than 30 days
contractually delinquent as of the last day of the related Collection Period,
(ii) 14.00% of the aggregate Principal Balance of the Mortgage Loans that are 30
to 59 days contractually delinquent as of the last day of the related Collection
Period, (iii) 30.00% of the aggregate Principal Balance of the Mortgage Loans
that are 60 to 89 days contractually delinquent as of the last day of the
related Collection Period, (iv) 80.00% of the aggregate Principal Balance of the
Mortgage Loans that are greater than 90 days contractually delinquent as of the
last day of the related Collection Period, (v) 50.00% of the aggregate Principal
Balance of the Mortgage Loans that are in bankruptcy as of such Payment Date,
and (vi) 100.00% of the aggregate Principal Balance of the Mortgage Loans that
are in foreclosure or that relate to REO Properties; and (II) 0.50% of the
Initial Pool Balance. Notwithstanding the foregoing, the Required
Overcollateralization Amount shall not exceed 2.00% of the Initial Pool Balance.
In addition, the Required Overcollateralization Amount may be reduced with the
prior written consent of the Enhancer.
Responsible Officer: With respect to the Indenture Trustee, any officer
of the Indenture Trustee with direct responsibility for the administration of
the Trust Agreement and also, with respect to a particular matter, any other
officer to whom such matter is referred because of such officer's knowledge of
and familiarity with the particular subject.
Rolling Six-Month Annualized Liquidation Loss Amounts: With respect to
any Determination Date occurring after the fifth Determination Date, the product
(expressed as a percentage) of (i) the aggregate Liquidation Loss Amounts as of
the end of each of the six Collection Periods (reduced by the aggregate Recovery
Amounts for such Collection Periods) immediately preceding such Determination
Date divided by the Initial Pool Balance and (ii) two (2).
SB-IO Marker Rate: Two times the weighted average of the REMIC II
Remittance Rates for the Class LT2 REMIC II Regular Interest and the Class LT3
REMIC II Regular Interest weighted by their respective Class Principal Balances.
Secretary of State: The Secretary of State of the State of Delaware.
Securities Act: The Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder.
Securities Balance: The Note Balance or Certificate Balance, as the context
may require.
Security: Any Certificate or a Note, as the context may require.
Securityholder: Any Noteholder or Certificateholder.
Seller: Each of GMACM and WG Trust.
Servicer: GMAC Mortgage Corporation, a Pennsylvania corporation, and its
successors and assigns.
Servicer Advances: Any advances the Servicer may make with respect to
the Mortgage Loans, whether or not required, in respect of principal, interest,
taxes, insurance or otherwise.
Servicing Agreement: The servicing agreement dated as of the Closing Date,
among the Servicer, the Issuer and the Indenture Trustee.
Servicing Certificate: A certificate completed and executed by a Servicing
Officer on behalf of the Servicer in accordance with Section 4.01 of the
Servicing Agreement.
Servicing Default: Any one of the following events:
(i) any failure by the Servicer to deposit in the Custodial Account, the
Note Payment Account or the Distribution Account any deposit required to be made
under the terms of the Servicing Agreement that continues unremedied for a
period of five Business Days after the date upon which written notice of such
failure shall have been given to the Servicer by the Issuer or the Indenture
Trustee or to the Servicer, the Issuer and the Indenture Trustee by the
Enhancer;
(ii) any failure on the part of the Servicer duly to observe or perform
in any material respect any other covenants or agreements of the Servicer set
forth in the Securities or in the Servicing Agreement, which failure, in each
case, materially and adversely affects the interests of the Securityholders or
the Enhancer, and which failure continues unremedied for a period of 45 days
after the date on which written notice of such failure, requiring the same to be
remedied, and stating that such notice is a "Notice of Default" under the
Servicing Agreement, shall have been given to the Servicer by the Issuer or the
Indenture Trustee or to the Servicer, the Issuer and the Indenture Trustee by
the Enhancer;
(iii) the entry against the Servicer of a decree or order by a court or
agency or supervisory authority having jurisdiction under Title 11 of the United
States Code or any other applicable federal or state bankruptcy, insolvency or
other similar law, or if a receiver, assignee or trustee in bankruptcy or
reorganization, liquidator, sequestrator or similar official shall have been
appointed for or taken possession of the Servicer or its property, and the
continuance of any such decree or order unstayed and in effect for a period of
60 consecutive days;
(iv) the Servicer shall voluntarily submit to Proceedings under Title 11
of the United States Code or any other applicable federal or state bankruptcy,
insolvency or other similar law relating to the Servicer or of or relating to
all or substantially all of its property; or the Servicer shall admit in writing
its inability to pay its debts generally as they become due, file a petition to
take advantage of any applicable insolvency or reorganization statute, make an
assignment for the benefit of its creditors or voluntarily suspend payment of
its obligations;
(v) the Servicer's Tangible Net Worth at any time is less than
$100,000,000 and GMAC fails to own, directly or indirectly, at least 51% of the
common stock of the Servicer; or
(vi) the Rolling Six-Month Annualized Liquidation Loss Amount with
respect to the Mortgage Loans exceeds 1.5%.
Servicing Fee: With respect to any Mortgage Loan and any Collection
Period, the product of (i) the Servicing Fee Rate divided by 12 and (ii) the
aggregate Principal Balance of all Mortgage Loans as of the first day of such
Collection Period.
Servicing Fee Rate: 0.50% per annum.
Servicing Officer: Any officer of the Servicer involved in, or
responsible for, the administration and servicing of the Mortgage Loans whose
name and specimen signature appear on a list of servicing officers furnished to
the Indenture Trustee (with a copy to the Enhancer) by the Servicer, as such
list may be amended from time to time.
Standard & Poor's: Standard & Poor's Ratings Services, a division of The
XxXxxx-Xxxx Companies, Inc. or its successor in interest.
Stated Value: With respect to any Mortgage Loan, the stated value of the
related Mortgaged Property determined in accordance with the Program Guide and
given by the related Mortgagor in his or her application.
Statutory Trust Statute: Chapter 38 of Title 12 of the Delaware Code, 12
Del. Code ss.ss.3801 et seq., as the same may be amended from time to time.
Stepdown Date: The later of (i) the Payment Date in June 2007 and (ii)
the first Payment Date on which the Pool Balance (after applying payments
received in the related Collection Period) as of such Payment Date is less than
50% of the Pool Balance as of the Cut-Off Date.
Subsequent Cut-Off Date: With respect to any Subsequent Mortgage Loan,
the date specified in the related Subsequent Transfer Agreement.
Subsequent Cut-Off Date Principal Balance: With respect to any
Subsequent Mortgage Loan, the Principal Balance thereof as of the close of
business on the last day of the Collection Period immediately prior to the
related Subsequent Cut-Off Date.
Subsequent Mortgage Loan: A mortgage loan sold by a Seller to the Issuer
pursuant to Section 2.2 of the Purchase Agreement, which are listed on the
Mortgage Loan Schedule attached to the related Subsequent Transfer Agreement.
Subsequent Net Recovery Amounts: Amounts collected on a Mortgage Loan
after the Mortgage Loan becomes a Liquidated Mortgage Loan, net of any Servicing
Fee, Recovery Fee and any reimbursement for advances and expenses of the
Servicer.
Subsequent Transfer Agreement: Each Subsequent Transfer Agreement dated
as of a Subsequent Transfer Date executed by the respective Seller and the
Issuer substantially in the form of Exhibit 2 to the Purchase Agreement, by
which the related Subsequent Mortgage Loans are sold to the Issuer.
Subsequent Transfer Date: With respect to each Subsequent Transfer
Agreement, the date on which the related Subsequent Mortgage Loans are sold to
the Issuer.
Subservicer: Each Person that enters into a Subservicing Agreement as a
subservicer of Mortgage Loans.
Subservicing Agreement: The written contract between the Servicer and
any Subservicer relating to servicing and administration of certain Mortgage
Loans as provided in Section 3.01 of the Servicing Agreement.
Substitution Adjustment Amount: With respect to any Eligible Substitute
Loan and any Deleted Loan, the amount, if any, as determined by the Servicer, 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 Monthly
Payments due in the month of substitution that are to be distributed to the
Securityholders in the month of substitution).
Tangible Net Worth: Net Worth, less the sum of the following (without
duplication): (a) any other assets of GMACM and its consolidated subsidiaries
that would be treated as intangibles under GAAP including, without limitation,
any write-up of assets (other than adjustments to market value to the extent
required under GAAP with respect to excess servicing, residual interests in
offerings of asset-backed securities and asset-backed securities that are
interest-only securities), good-will, research and development costs,
trade-marks, trade names, copyrights, patents and unamortized debt discount and
expenses and (b) loans or other extensions of credit to officers of GMACM or its
consolidated subsidiaries other than mortgage loans made to such Persons in the
ordinary course of business.
Tax Matters Partner: GMACM, as the Servicer, for so long as the Servicer
holds all or any portion of the Class R Certificates; if any other Person holds
100% of the Class R Certificates, such Person; and otherwise as provided in the
Code.
Tax Returns: The federal income tax return on Internal Revenue Service
Form 1066, U.S. Real Estate Mortgage Investment Conduit Income Tax Return,
including Schedule Q thereto, Quarterly Notice to Residual Interest Holders of
REMIC Taxable Income or Net Loss Allocation, or any successor forms, to be filed
on behalf of each REMIC due to their classification as a REMIC under the REMIC
Provisions, together with any and all other information, reports or returns that
may be required to be furnished to the Certificateholders or filed with the
Internal Revenue Service or any other governmental taxing authority under any
applicable provisions of federal, state or local tax laws.
Telerate Screen Page 3750: The display page so designated on the Bridge
Telerate Capital Markets Report (or such other page as may replace page 3750 on
such service for the purpose of displaying London interbank offered rates of
major banks, or, if such service is no longer offered, such other service for
displaying London interbank offered rates or comparable rates as may be selected
by the Indenture Trustee after consultation with the Servicer).
Transfer: Any direct or indirect transfer, sale, pledge, hypothecation
or other form of assignment of any Ownership Interest in a Certificate.
Transfer Date: The Payment Date on which the Servicer, upon receipt of
written notice and direction from the Issuer, shall cause the retransfer of
Mortgage Loans from the Trust Estate to the Issuer, pursuant to Section 3.15(c)
of the Servicing Agreement.
Transfer Notice Date: The fifth Business Day prior to the Transfer Date
for which the Servicer shall give the Indenture Trustee, the Rating Agencies and
the Enhancer a notice of the proposed retransfer of Mortgage Loans, pursuant to
Section 3.15(c) of the Servicing Agreement.
Transferee: Any Person who is acquiring by Transfer any Ownership Interest
in a Certificate.
Transferor: Any Person who is disposing by Transfer of any Ownership
Interest in a Certificate.
Treasury Regulations: Regulations, including proposed or temporary
Regulations, promulgated under the Code. References herein to specific
provisions of proposed or temporary regulations shall include analogous
provisions of final Treasury Regulations or other successor Treasury
Regulations.
Trust Agreement: The trust agreement dated as of the Closing Date,
between the Owner Trustee and the Depositor.
Trust Estate: The meaning specified in the Granting Clause of the
Indenture.
Trust Indenture Act or TIA: The Trust Indenture Act of 1939, as amended
from time to time, as in effect on any relevant date.
UCC: The Uniform Commercial Code, as amended from time to time, as in
effect in any specified jurisdiction.
Uncertificated Accrued Interest: With respect to any REMIC I Regular
Interest for any Payment Date, one month's interest at the related REMIC I
Remittance Rate for such Payment Date, accrued on the Uncertificated Principal
Balance immediately prior to such Payment Date. Uncertificated Accrued Interest
for the REMIC I and REMIC II Regular Interests shall accrue on the basis of a
360-day year consisting of twelve 30-day months. For purposes of calculating the
amount of Uncertificated Accrued Interest for the REMIC I Regular Interests for
any Payment Date, any Prepayment Interest Shortfalls or Relief Act Shortfalls
for such Payment Date shall be allocated among the LTA and LTB REMIC I Regular
Interests pro rata based on, and to the extent of, the Uncertificated Accrued
Interest thereon, as calculated without the application of this sentence. For
purposes of calculating the amount of Uncertificated Accrued Interest for the
REMIC II Regular Interests for any Payment Date, any Prepayment Interest
Shortfalls or Relief Act Shortfalls for such Payment Date shall be allocated
among the LT1, LT2, LT3, LT4 and LTA-IO REMIC I Regular Interests, pro rata
based on, and to the extent of, Uncertificated Accrued Interest, as calculated
without application of this sentence. With respect to any Payment Date and the
REMIC III Regular Interest SB-IO, one month's interest at the related
Certificate Rate on the Notional Amount thereof reduced by its pro-rata share of
any Prepayment Interest Shortfalls or Relief Act Shortfalls, but not reduced by
amounts distributable pursuant to clauses (iv), (v) or (vi) of Section
3.05(a)(I) of the Indenture.
Uncertificated Notional Amount: With respect to each REMIC II Regular
Interest LTA-IO, the amount defined in footnote (3) to the definition of REMIC
II Regular Interest.
Uncertificated Principal Balance: With respect to any Payment Date and
any REMIC I Regular Interest, the Initial Balance thereof reduced by the
allocation to the principal thereof on prior Payment Dates of Liquidation Loss
Amounts pursuant to the definition of REMIC I Liquidation Loss Amounts and of
amounts deemed distributed with respect to the REMIC I Regular Interests. With
respect to any Payment Date and any REMIC II Regular Interest, the Initial
Balance thereof reduced by the allocation to the principal thereof on prior
Payment Dates of Liquidation Loss Amounts pursuant to the definition of REMIC II
Liquidation Loss Amounts and of amounts deemed distributed with respect to the
REMIC II Regular Interests. With respect to any Payment Date and the REMIC III
Regular Interest SB-PO, the Initial Balance thereof reduced by the allocation to
the principal thereof on prior Payment Dates of Liquidation Loss Amounts, to the
extent such Liquidation Loss Amounts are allocated to the principal of the Class
SB-I Certificates, and amounts deemed distributed with respect to such REMIC III
Regular Interest.
Uncertificated Regular Interests: The REMIC I Regular Interests, the
REMIC II Regular Interests, the REMIC III Regular Interest SB-IO and the REMIC
III Regular Interest SB-PO.
Uniform Single Attestation Program for Mortgage Bankers: The Uniform
Single Attestation Program for Mortgage Bankers, as published by the Mortgage
Bankers Association of America and effective with respect to fiscal periods
ending on or after December 15, 1995.
United States Person: A citizen or resident of the United States, a
corporation, partnership or other entity created or organized in, or under the
laws of, the United States, any state thereof, or the District of Columbia
(except in the case of a partnership, to the extent provided in Treasury
regulations), or an estate that is described in Section 7701(a)(30)(D) of the
Code, or a trust that is described in Section 7701(a)(30)(E) of the Code.
Voting Rights: The portion of the voting rights of the Holders of the
Notes allocated to each Class of Notes. 99.00% of all of the Voting Rights
exercisable by the Noteholders shall be allocated among the Classes of Notes
(other than the Class A-IO Notes) in accordance with their respective
outstanding Note Balances and 1.0% of all of the Voting Rights shall be
allocated among the Holders of the Class A-IO Notes. Voting Rights shall be
allocated among the Holders of a Class of Notes on a pro rata basis in
accordance with their respective Percentage Interests.
Weighted Average Net Loan Rate: For any Payment Date, the weighted
average of the Net Loan Rates of the Mortgage Loans, weighted by the respective
Principal Balances of the Mortgage Loans as of the beginning of the related
Collection Period.
WG Trust: Walnut Grove Mortgage Loan Trust 2003-A, a Delaware statutory
trust.
WG Trust Initial Mortgage Loans: The Initial Mortgage Loans transferred
to the Depositor by the Seller as set forth in the Purchase Agreement.
