EXHIBIT 4.1
EXECUTION COPY
==============
INDYMAC ABS, INC.
Depositor
INDYMAC BANK, F.S.B.
Seller and Master Servicer
DEUTSCHE BANK NATIONAL TRUST COMPANY
Trustee and Supplemental Interest Trust Administrator
____________________________________
POOLING AND SERVICING AGREEMENT
Dated as of September 1, 2005
____________________________________
HOME EQUITY MORTGAGE LOAN ASSET-BACKED TRUST
Series INABS 2005-C
HOME EQUITY MORTGAGE LOAN ASSET-BACKED CERTIFICATES
Series INABS 2005-C
TABLE OF CONTENTS
ARTICLE I
DEFINITIONS
Section 1.01 Definitions
Section 1.02 Rules of Construction
ARTICLE II
CONVEYANCE OF MORTGAGE LOANS; REPRESENTATIONS AND WARRANTIES
Section 2.01 Conveyance of Mortgage Loans
Section 2.02 Acceptance by the Trustee of the Mortgage Loans
Section 2.03 Representations, Warranties, and Covenants of the Seller and the Master Servicer
Section 2.04 Representations and Warranties of the Depositor as to the Mortgage Loans
Section 2.05 Delivery of Opinion of Counsel in Connection with Substitutions and Repurchases
Section 2.06 Execution and Delivery of Certificates
Section 2.07 Conveyance of Subsequent Mortgage Loans
Section 2.08 REMIC Matters
Section 2.09 Covenants of the Master Servicer
ARTICLE III
ADMINISTRATION AND SERVICING OF MORTGAGE LOANS
Section 3.01 Master Servicer to Service Mortgage Loans
Section 3.02 Subservicing; Enforcement of the Obligations of Subservicers
Section 3.03 [Reserved]
Section 3.04 No Contractual Relationship Between Subservicers and the Trustee
Section 3.05 Trustee to Act as Master Servicer
Section 3.06 Collection of Mortgage Loan Payments; Servicing Accounts; Collection Account;
Certificate Account; Distribution Account; Excess Reserve Fund Account
Section 3.07 Collection of Taxes, Assessments, and Similar Items Escrow Accounts
Section 3.08 Access to Certain Documentation and Information Regarding the Mortgage Loans
Section 3.09 Permitted Withdrawals from the Certificate Account, the Distribution Account, the
Interest Coverage Account and the Excess Reserve Fund Account
Section 3.10 Maintenance of Hazard Insurance; Maintenance of Primary Insurance Policies
Section 3.11 Enforcement of Due-On-Sale Clauses; Assumption Agreements
Section 3.12 Realization Upon Defaulted Mortgage Loans; Repurchase of Certain Mortgage Loans
Section 3.13 Trustee to Cooperate; Release of Mortgage Files
Section 3.14 Documents, Records, and Funds in Possession of the Master Servicer to be Held for the Trustee
Section 3.15 Servicing Compensation
Section 3.16 Access to Certain Documentation
Section 3.17 Annual Statement as to Compliance
Section 3.18 Annual Independent Public Accountants' Servicing Statement; Financial Statements
Section 3.19 Errors and Omissions Insurance; Fidelity Bonds
Section 3.20 Notification of Adjustments
Section 3.21 Prepayment Charges
Section 3.22 Pre-Funding Accounts
Section 3.23 Interest Coverage Accounts
ARTICLE IV
DISTRIBUTIONS AND ADVANCES BY THE MASTER SERVICER
Section 4.01 Advances
Section 4.02 Priorities of Distribution
Section 4.03 Monthly Statements to Certificateholders
Section 4.04 Cap Contract
Section 4.05 Supplemental Interest Trust
Section 4.06 Tax Treatment of Net Swap Payments and Swap Termination Payments
Section 4.07 Certain Matters Relating to the Determination of LIBOR
ARTICLE V
THE CERTIFICATES
Section 5.01 The Certificates
Section 5.02 Certificate Register; Registration of Transfer and Exchange of Certificates
Section 5.03 Mutilated, Destroyed, Lost or Stolen Certificates
Section 5.04 Persons Deemed Owners
Section 5.05 Access to List of Certificateholders' Names and Addresses
Section 5.06 Maintenance of Office or Agency
ARTICLE VI
THE DEPOSITOR AND THE MASTER SERVICER
Section 6.01 Respective Liabilities of the Depositor and the Master Servicer
Section 6.02 Merger or Consolidation of the Depositor or the Master Servicer
Section 6.03 Limitation on Liability of the Depositor, the Seller, the Master Servicer, and Others
Section 6.04 Limitation on Resignation of the Master Servicer
Section 6.05 Inspection
ARTICLE VII
DEFAULT
Section 7.01 Events of Default
Section 7.02 Trustee to Act; Appointment of Successor
Section 7.03 Notification to Certificateholders
ARTICLE VIII
CONCERNING THE TRUSTEE AND THE SUPPLEMENTAL INTEREST TRUST ADMINISTRATOR
Section 8.01 Duties of the Trustee and the Supplemental Interest Trust Administrator
Section 8.02 Certain Matters Affecting the Trustee and the Supplemental Interest Trust Administrator
Section 8.03 Trustee and Supplemental Interest Trust Administrator Not Liable for Certificates or Mortgage Loans
Section 8.04 Trustee and Supplemental Interest Trust Administrator May Own Certificates
Section 8.05 Trustee's Fees and Expenses
Section 8.06 Eligibility Requirements for the Trustee and the Supplemental Interest Trust Administrator
Section 8.07 Resignation and Removal of the Trustee and the Supplemental Interest Trust Administrator
Section 8.08 Successor Trustee or Supplemental Interest Trust Administrator
Section 8.09 Merger or Consolidation of the Trustee or the Supplemental Interest Trust Administrator
Section 8.10 Appointment of Co-Trustee or Separate Trustee
Section 8.11 Tax Matters
Section 8.12 Periodic Filings
Section 8.13 [Reserved]
Section 8.14 [Reserved]
Section 8.15 Access to Records of Trustee
Section 8.16 Suits for Enforcement
ARTICLE IX
TERMINATION
Section 9.01 Termination upon Liquidation or Purchase of the Mortgage Loans
Section 9.02 Final Distribution on the Certificates
Section 9.03 Additional Termination Requirements
Section 9.04 Termination of the Supplemental Interest Trust
ARTICLE X
MISCELLANEOUS PROVISIONS
Section 10.01 Amendment
Section 10.02 Recordation of Agreement; Counterparts
Section 10.03 Governing Law
Section 10.04 Intention of Parties
Section 10.05 Notices
Section 10.06 Severability of Provisions
Section 10.07 Assignment
Section 10.08 Limitation on Rights of Certificateholders
Section 10.09 Inspection and Audit Rights
Section 10.10 Certificates Nonassessable and Fully Paid
Section 10.11 Official Record
Section 10.12 Protection of Assets
Section 10.13 Qualifying Special Purpose Entity
Section 10.14 Rights of NIM Insurer
SCHEDULES
Schedule I Mortgage Loan Schedule
Schedule II: Representations and Warranties of the Seller/Master Servicer as of the Closing Date
Schedule III: Representations and Warranties as to the Mortgage Loans as of the Closing Date or
Cut-off Date, as applicable
EXHIBITS
Exhibit A: Form of Class A and Subordinated Certificates
Exhibit B: Form of Class P Certificate
Exhibit C: Form of Class R Certificate
Exhibit D: Form of Class C Certificate
Exhibit E: [Reserved]
Exhibit F: Form of Reverse of Certificates
Exhibit G-1: Form of Initial Certification of Trustee
Exhibit G-2: Form of Delayed Delivery Certification
Exhibit H: Form of Final Certification of Trustee
Exhibit I: Form of Transfer Affidavit
Exhibit J: Form of Transferor Certificate
Exhibit K: Form of Swap Agreement
Exhibit L: Form of Rule 144A Letter
Exhibit M: Form of Request for Release (for Trustee)
Exhibit N: Form of Request for Release (Mortgage Loan Paid in Full, Repurchased, and Released)
Exhibit O: Form of Trustee Certification
Exhibit P: Form of Addition Notice
Exhibit Q: Form of Subsequent Transfer Instrument
THIS POOLING AND SERVICING AGREEMENT, dated as of September 1, 2005,
among IndyMac ABS, Inc., a Delaware corporation, as depositor (the "DEPOSITOR"),
IndyMac Bank, F.S.B. ("INDYMAC"), a federal savings bank, as seller (in that
capacity, the "SELLER") and as master servicer (in that capacity, the "MASTER
SERVICER"), and Deutsche Bank National Trust Company, a national banking
association, as trustee (the "TRUSTEE") and as supplemental interest trust
administrator (the "SUPPLEMENTAL INTEREST TRUST ADMINISTRATOR"),
WITNESSETH THAT
In consideration of the mutual agreements herein contained, the parties
agree as follows:
PRELIMINARY STATEMENT
The Depositor intends to sell pass-through certificates (collectively,
the "CERTIFICATES"), to be issued hereunder in multiple classes, which in the
aggregate will evidence the entire beneficial ownership interest in each REMIC
(as defined herein) created hereunder. The Trust Fund will consist of a
segregated pool of assets consisting of the Mortgage Loans and certain other
related assets subject to this Agreement.
REMIC I
As provided herein, the Trustee will elect to treat the segregated pool
of assets consisting of the Mortgage Loans and certain other related assets
(other than the Pre-Funding Accounts, any Subsequent Mortgage Loan Interest, the
Excess Reserve Fund Account, the Interest Coverage Account, the Cap Contract,
the Supplemental Interest Trust and the Swap Agreement) subject to this
Agreement as a REMIC for federal income tax purposes, and such segregated pool
of assets will be designated as REMIC I. The Class R-I Interest will be the sole
class of residual interests in REMIC I for purposes of the REMIC Provisions (as
defined herein). The following table irrevocably sets forth the designation, the
REMIC I Remittance Rate, the initial Uncertificated Balance and, for purposes of
satisfying Treasury Regulation Section 1.860G-1(a)(4)(iii), the latest possible
maturity date for each of the REMIC I Regular Interests (as defined herein).
None of the REMIC I Regular Interests will be certificated.
Class Initial Uncertificated Latest Possible
Designation REMIC I Remittance Rate Balance Maturity Date(1)
----------- ----------------------- ------- ----------------
Class I-LT1 Variable(2) $ 320,475,566.80 October 25, 2035
Class I-LT1PF Variable(2) $ 17,033,691.02 October 25, 2035
Class I-LT2 Variable(2) $ 349,506,812.99 October 25, 2035
Class I-LT2PF Variable(2) $ 12,983,829.19 October 25, 2035
Class I-LTP Variable(2) $ 100.00 October 25, 2035
----------------
(1) For purposes of Treasury Regulation Section
1.860G-1(a)(4)(iii), the Distribution Date immediately following the maturity
date for the Mortgage Loan with the latest maturity date has been designated as
the latest possible maturity date for each REMIC I Regular Interest.
(2) Calculated in accordance with the definition of REMIC I
Remittance Rate herein.
REMIC II
As provided herein, the Trustee will elect to treat the segregated pool
of assets consisting of the REMIC I Regular Interests as a REMIC for federal
income tax purposes, and such segregated pool of assets will be designated as
REMIC II. The Class R-II Interest will evidence the sole class of residual
interests in REMIC II for purposes of the REMIC Provisions. The following table
irrevocably sets forth the designation, the REMIC II Remittance Rate, the
initial Uncertificated Balance and, for purposes of satisfying Treasury
Regulation Section 1.860G-1(a)(4)(iii), the latest possible maturity date for
each of the REMIC II Regular Interests (as defined herein). None of the REMIC II
Regular Interests will be certificated.
Latest
Rremic II Initial Possible
Designation Remittance Rate Uncertificated Balance Maturity Date(1)
----------- --------------- ---------------------- ----------------
I Variable(2) $ 47,396,339.12 October 25, 2035
I-1-A Variable(2) $ 4,391,478.90 October 25, 2035
I-1-B Variable(2) $ 4,391,478.90 October 25, 2035
I-2-A Variable(2) $ 4,881,108.55 October 25, 2035
I-2-B Variable(2) $ 4,881,108.55 October 25, 2035
I-3-A Variable(2) $ 5,346,871.46 October 25, 2035
I-3-B Variable(2) $ 5,346,871.46 October 25, 2035
I-4-A Variable(2) $ 5,718,131.76 October 25, 2035
I-4-B Variable(2) $ 5,718,131.76 October 25, 2035
I-5-A Variable(2) $ 6,019,961.55 October 25, 2035
I-5-B Variable(2) $ 6,019,961.55 October 25, 2035
I-6-A Variable(2) $ 5,861,332.15 October 25, 2035
I-6-B Variable(2) $ 5,861,332.15 October 25, 2035
I-7-A Variable(2) $ 5,588,672.81 October 25, 2035
I-7-B Variable(2) $ 5,588,672.81 October 25, 2035
I-8-A Variable(2) $ 5,327,826.29 October 25, 2035
I-8-B Variable(2) $ 5,327,826.29 October 25, 2035
I-9-A Variable(2) $ 5,079,515.84 October 25, 2035
I-9-B Variable(2) $ 5,079,515.84 October 25, 2035
I-10-A Variable(2) $ 4,842,536.05 October 25, 2035
I-10-B Variable(2) $ 4,842,536.05 October 25, 2035
I-11-A Variable(2) $ 4,617,128.01 October 25, 2035
I-11-B Variable(2) $ 4,617,128.01 October 25, 2035
I-12-A Variable(2) $ 4,401,845.26 October 25, 2035
I-12-B Variable(2) $ 4,401,845.26 October 25, 2035
I-13-A Variable(2) $ 4,198,616.41 October 25, 2035
I-13-B Variable(2) $ 4,198,616.41 October 25, 2035
I-14-A Variable(2) $ 4,012,986.26 October 25, 2035
I-14-B Variable(2) $ 4,012,986.26 October 25, 2035
I-15-A Variable(2) $ 3,873,402.04 October 25, 2035
I-15-B Variable(2) $ 3,873,402.04 October 25, 2035
I-16-A Variable(2) $ 6,405,686.53 October 25, 2035
I-16-B Variable(2) $ 6,405,686.53 October 25, 2035
I-17-A Variable(2) $ 6,551,779.87 October 25, 2035
I-17-B Variable(2) $ 6,551,779.87 October 25, 2035
I-18-A Variable(2) $ 5,883,511.34 October 25, 2035
I-18-B Variable(2) $ 5,883,511.34 October 25, 2035
I-19-A Variable(2) $ 5,282,744.68 October 25, 2035
I-19-B Variable(2) $ 5,282,744.68 October 25, 2035
I-20-A Variable(2) $ 4,731,157.96 October 25, 2035
I-20-B Variable(2) $ 4,731,157.96 October 25, 2035
I-21-A Variable(2) $ 3,029,869.72 October 25, 2035
I-21-B Variable(2) $ 3,029,869.72 October 25, 2035
I-22-A Variable(2) $ 2,477,318.69 October 25, 2035
I-22-B Variable(2) $ 2,477,318.69 October 25, 2035
I-23-A Variable(2) $ 2,339,422.01 October 25, 2035
I-23-B Variable(2) $ 2,339,422.01 October 25, 2035
I-24-A Variable(2) $ 2,210,204.14 October 25, 2035
I-24-B Variable(2) $ 2,210,204.14 October 25, 2035
I-25-A Variable(2) $ 2,089,665.08 October 25, 2035
I-25-B Variable(2) $ 2,089,665.08 October 25, 2035
I-26-A Variable(2) $ 1,976,358.37 October 25, 2035
I-26-B Variable(2) $ 1,976,358.27 October 25, 2035
I-27-A Variable(2) $ 1,869,319.69 October 25, 2035
I-27-B Variable(2) $ 1,869,319.69 October 25, 2035
I-28-A Variable(2) $ 1,768,307.96 October 25, 2035
I-28-B Variable(2) $ 1,768,307.96 October 25, 2035
I-29-A Variable(2) $ 18,688,134.22 October 25, 2035
I-29-B Variable(2) $ 18,688,134.22 October 25, 2035
I-30-A Variable(2) $ 552,309.96 October 25, 2035
I-30-B Variable(2) $ 552,309.96 October 25, 2035
I-31-A Variable(2) $ 529,889.69 October 25, 2035
I-31-B Variable(2) $ 529,889.69 October 25, 2035
I-32-A Variable(2) $ 508,192.66 October 25, 2035
I-32-B Variable(2) $ 508,192.66 October 25, 2035
I-33-A Variable(2) $ 487,701.02 October 25, 2035
I-33-B Variable(2) $ 487,701.02 October 25, 2035
I-34-A Variable(2) $ 467,932.62 October 25, 2035
I-34-B Variable(2) $ 467,932.62 October 25, 2035
I-35-A Variable(2) $ 1,279,883.70 October 25, 2035
I-35-B Variable(2) $ 1,279,883.70 October 25, 2035
I-36-A Variable(2) $ 380,662.34 October 25, 2035
I-36-B Variable(2) $ 380,662.34 October 25, 2035
I-37-A Variable(2) $ 366,197.65 October 25, 2035
I-37-B Variable(2) $ 366,197.65 October 25, 2035
I-38-A Variable(2) $ 352,697.28 October 25, 2035
I-38-B Variable(2) $ 352,697.28 October 25, 2035
I-39-A Variable(2) $ 339,196.90 October 25, 2035
I-39-B Variable(2) $ 339,196.90 October 25, 2035
I-40-A Variable(2) $ 326,901.92 October 25, 2035
I-40-B Variable(2) $ 326,901.92 October 25, 2035
II Variable(2) $ 50,904,560.88 October 25, 2035
II-1-A Variable(2) $ 4,716,521.10 October 25, 2035
II-1-B Variable(2) $ 4,716,521.10 October 25, 2035
II-2-A Variable(2) $ 5,242,391.45 October 25, 2035
II-2-B Variable(2) $ 5,242,391.45 October 25, 2035
II-3-A Variable(2) $ 5,742,628.54 October 25, 2035
II-3-B Variable(2) $ 5,742,628.54 October 25, 2035
II-4-A Variable(2) $ 6,141,368.24 October 25, 2035
II-4-B Variable(2) $ 6,141,368.24 October 25, 2035
II-5-A Variable(2) $ 6,465,538.45 October 25, 2035
II-5-B Variable(2) $ 6,465,538.45 October 25, 2035
II-6-A Variable(2) $ 6,295,167.85 October 25, 2035
II-6-B Variable(2) $ 6,295,167.85 October 25, 2035
II-7-A Variable(2) $ 6,002,327.19 October 25, 2035
II-7-B Variable(2) $ 6,002,327.19 October 25, 2035
II-8-A Variable(2) $ 5,722,173.71 October 25, 2035
II-8-B Variable(2) $ 5,722,173.71 October 25, 2035
II-9-A Variable(2) $ 5,455,484.15 October 25, 2035
II-9-B Variable(2) $ 5,455,484.15 October 25, 2035
I-10-A Variable(2) $ 5,200,963.95 October 25, 2035
II-10-B Variable(2) $ 5,200,963.95 October 25, 2035
II-11-A Variable(2) $ 4,958,871.99 October 25, 2035
II-11-B Variable(2) $ 4,958,871.99 October 25, 2035
II-12-A Variable(2) $ 4,727,654.74 October 25, 2035
II-12-B Variable(2) $ 4,727,654.74 October 25, 2035
II-13-A Variable(2) $ 4,509,383.59 October 25, 2035
II-13-B Variable(2) $ 4,509,383.59 October 25, 2035
II-14-A Variable(2) $ 4,310,013.74 October 25, 2035
II-14-B Variable(2) $ 4,310,013.74 October 25, 2035
II-15-A Variable(2) $ 4,160,097.96 October 25, 2035
II-15-B Variable(2) $ 4,160,097.96 October 25, 2035
II-16-A Variable(2) $ 6,879,813.47 October 25, 2035
II-16-B Variable(2) $ 6,879,813.47 October 25, 2035
II-17-A Variable(2) $ 7,036,720.13 October 25, 2035
II-17-B Variable(2) $ 7,036,720.13 October 25, 2035
II-18-A Variable(2) $ 6,318,988.66 October 25, 2035
II-18-B Variable(2) $ 6,318,988.66 October 25, 2035
II-19-A Variable(2) $ 5,673,755.32 October 25, 2035
II-19-B Variable(2) $ 5,673,755.32 October 25, 2035
II-20-A Variable(2) $ 5,081,342.04 October 25, 2035
II-20-B Variable(2) $ 5,081,342.04 October 25, 2035
II-21-A Variable(2) $ 3,254,130.28 October 25, 2035
II-21-B Variable(2) $ 3,254,130.28 October 25, 2035
II-22-A Variable(2) $ 2,660,681.31 October 25, 2035
II-22-B Variable(2) $ 2,660,681.31 October 25, 2035
II-23-A Variable(2) $ 2,512,577.99 October 25, 2035
II-23-B Variable(2) $ 2,512,577.99 October 25, 2035
II-24-A Variable(2) $ 2,373,795.86 October 25, 2035
II-24-B Variable(2) $ 2,373,795.86 October 25, 2035
II-25-A Variable(2) $ 2,244,334.92 October 25, 2035
II-25-B Variable(2) $ 2,244,334.92 October 25, 2035
II-26-A Variable(2) $ 2,122,641.63 October 25, 2035
II-26-B Variable(2) $ 2,122,641.63 October 25, 2035
II-27-A Variable(2) $ 2,007,680.31 October 25, 2035
II-27-B Variable(2) $ 2,007,680.31 October 25, 2035
II-28-A Variable(2) $ 1,899,192.04 October 25, 2035
II-28-B Variable(2) $ 1,899,192.04 October 25, 2035
II-29-A Variable(2) $ 20,071,365.78 October 25, 2035
II-29-B Variable(2) $ 20,071,365.78 October 25, 2035
II-30-A Variable(2) $ 593,190.04 October 25, 2035
II-30-B Variable(2) $ 593,190.04 October 25, 2035
II-31-A Variable(2) $ 569,110.31 October 25, 2035
II-31-B Variable(2) $ 569,110.31 October 25, 2035
II-32-A Variable(2) $ 545,807.34 October 25, 2035
II-32-B Variable(2) $ 545,807.34 October 25, 2035
II-33-A Variable(2) $ 523,798.98 October 25, 2035
II-33-B Variable(2) $ 523,798.98 October 25, 2035
II-34-A Variable(2) $ 502,567.38 October 25, 2035
II-34-B Variable(2) $ 502,567.38 October 25, 2035
II-35-A Variable(2) $ 1,374,616.30 October 25, 2035
II-35-B Variable(2) $ 1,374,616.30 October 25, 2035
II-36-A Variable(2) $ 408,837.66 October 25, 2035
II-36-B Variable(2) $ 408,837.66 October 25, 2035
II-37-A Variable(2) $ 393,302.35 October 25, 2035
II-37-B Variable(2) $ 393,302.35 October 25, 2035
I-38-A Variable(2) $ 378,802.72 October 25, 2035
II-38-B Variable(2) $ 378,802.72 October 25, 2035
II-39-A Variable(2) $ 364,303.10 October 25, 2035
II-39-B Variable(2) $ 364,303.10 October 25, 2035
II-40-A Variable(2) $ 351,098.08 October 25, 2035
II-40-B Variable(2) $ 351,098.08 October 25, 2035
P Variable(2) $ 100.00 October 25, 2035
----------------
(1) For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
regulations, the Distribution Date immediately following the maturity
date for the Mortgage Loan with the latest maturity date has been
designated as the "latest possible maturity date" for each REMIC II
Regular Interest.
(2) Calculated in accordance with the definition of "REMIC II Remittance
Rate" herein.
REMIC III
As provided herein, the Trustee will elect to treat the segregated pool
of assets consisting of the REMIC II Regular Interests as a REMIC for federal
income tax purposes, and such segregated pool of assets will be designated as
REMIC III. The Class R-III Interest will evidence the sole class of residual
interests in REMIC III for purposes of the REMIC Provisions. The following table
irrevocably sets forth the designation, the REMIC III Remittance Rate, the
initial Uncertificated Balance and, for purposes of satisfying Treasury
Regulation Section 1.860G-1(a)(4)(iii), the latest possible maturity date for
each of the REMIC III Regular Interests (as defined herein). None of the REMIC
III Regular Interests will be certificated.
Latest
Rremic III Initial Possible
Designation Remittance Rate Uncertificated Balance Maturity Date(1)
----------- --------------- ---------------------- ----------------
LTAA Variable(2) $ 342,999,951.00 October 25, 2035
LTAI1 Variable(2) $ 1,344,975.00 October 25, 2035
LTAII1 Variable(2) $ 653,500.00 October 25, 2035
LTAII2 Variable(2) $ 682,750.00 October 25, 2035
LTAII3 Variable(2) $ 108,275.00 October 25, 2035
LTM1 Variable(2) $ 127,750.00 October 25, 2035
LTM2 Variable(2) $ 112,000.00 October 25, 2035
LTM3 Variable(2) $ 75,250.00 October 25, 2035
LTM4 Variable(2) $ 56,000.00 October 25, 2035
LTM5 Variable(2) $ 56,000.00 October 25, 2035
LTM6 Variable(2) $ 49,000.00 October 25, 2035
LTM7 Variable(2) $ 52,500.00 October 25, 2035
LTM8 Variable(2) $ 36,750.00 October 25, 2035
LTM9 Variable(2) $ 31,500.00 October 25, 2035
LTM10 Variable(2) $ 12,250.00 October 25, 2035
LTM11 Variable(2) $ 35,000.00 October 25, 2035
LTZZ Variable(2) $ 3,566,499.00 October 25, 2035
LTP Variable(2) $ 100.00 October 25, 2035
LTIO Variable(2) (3) October 25, 2035
LT1SUB Variable(2) $ 6,851.43 October 25, 2035
LT1GRP Variable(2) $ 32,047.57 October 25, 2035
LT2SUB Variable(2) $ 7,358.56 October 25, 2035
LT2GRP Variable(2) $ 34,950.68 October 25, 2035
LTXX Variable(2) $ 349,918,741.76 October 25, 2035
----------------
(1) For purposes of Treasury Regulation Section 1.860G-1(a)(4)(iii), the
Distribution Date immediately following the maturity date for the
Mortgage Loan with the latest maturity date has been designated as the
latest possible maturity date for each REMIC III Regular Interest.
(2) Calculated in accordance with the definition of REMIC III Remittance
Rate herein.
(3) REMIC III Regular Interest LTIO will not have a Certificate Principal
Balance, but will accrue interest on its Uncertificated Notional
Amount, as defined herein.
REMIC IV
As provided herein, the Trustee will elect to treat the segregated pool
of assets consisting of the REMIC III Regular Interests as a REMIC for federal
income tax purposes, and such segregated pool of assets will be designated as
REMIC IV. The Class R-IV Interest will evidence the sole class of residual
interests in REMIC IV for purposes of the REMIC Provisions. The following table
irrevocably sets forth the designation, the Pass-Through Rate, the initial
aggregate Certificate Principal Balance and, for purposes of satisfying Treasury
Regulation Section 1.860G-1(a)(4)(iii), the latest possible maturity date for
the indicated Classes of Certificates.
Each Certificate, other than the Class R Certificates, generally
represents ownership of a regular interest in REMIC IV and also represents (i)
the right to receive payments with respect to the Net WAC Cap Carry Forward
Amount and (ii) the obligation to pay the Class IO Distribution Amount (as
defined herein). The entitlement to principal of each REMIC 4 Regular Interest
ownership of which is represented by a regular interest which corresponds to
each Certificate shall be equal in amount and timing to the entitlement to
principal of such Certificate.
Initial Aggregate
Certificate Principal Latest Possible
Designation Pass-Through Rate Balance Maturity Date(1)
----------- ----------------- ------- ----------------
Class A-I-1 Variable(2) $ 268,995,000.00 October 25, 2035
Class A-II-1 Variable(2) $ 130,700,000.00 October 25, 2035
Class A-II-2 Variable(2) $ 136,550,000.00 October 25, 2035
Class A-II-3 Variable(2) $ 21,655,000.00 October 25, 2035
Class M-1 Variable(2) $ 25,550,000.00 October 25, 2035
Class M-2 Variable(2) $ 22,400,000.00 October 25, 2035
Class M-3 Variable(2) $ 15,050,000.00 October 25, 2035
Class M-4 Variable(2) $ 11,200,000.00 October 25, 2035
Class M-5 Variable(2) $ 11,200,000.00 October 25, 2035
Class M-6 Variable(2) $ 9,800,000.00 October 25, 2035
Class M-7 Variable(2) $ 10,500,000.00 October 25, 2035
Class M-8 Variable(2) $ 7,350,000.00 October 25, 2035
Class M-9 Variable(2) $ 6,300,000.00 October 25, 2035
Class M-10 Variable(2) $ 2,450,000.00 October 25, 2035
Class M-11 Variable(2) $ 7,000,000.00 October 25, 2035
Class C Variable(2)(3) $ 13,299,900.00 October 25, 2035
Class P (4) $ 100.00 October 25, 2035
Class IO Interest (5) (6) October 25, 2035
----------------
(1) For purposes of Treasury Regulation Section 1.860G-1(a)(4)(iii), the
Distribution Date immediately following the maturity date for the
Mortgage Loan with the latest maturity date has been designated as the
latest possible maturity date for each Class of Certificates.
(2) Calculated in accordance with the definition of Pass-Through Rate
herein.
(3) The Class C Certificates will accrue interest at their variable
Pass-Through Rate on the Notional Amount of the Class C Certificates
outstanding from time to time, which shall equal the Uncertificated
Balance of the REMIC II Regular Interests, other than REMIC II Regular
Interest LTP. The Class C Certificates will not accrue interest on
their Uncertificated Balance.
(4) The Class P Certificates will not accrue interest.
(5) For federal income tax purposes, the Class IO Interest will not have a
Pass-Through Rate, but will be entitled to 100% of the amounts
distributed on REMIC III Regular Interest LTIO.
(6) For federal income tax purposes, the Class IO Interest will not have an
Uncertificated Balance, but will have a notional amount equal to the
Uncertificated Notional Amount of REMIC III Regular Interest IO.
Set forth below are designations of Classes of Certificates to the
categories used herein:
Book-Entry Certificates All Classes of Certificates other than the
Definitive Certificates.
Group I Certificates Class A-I-1 Certificates.
Group II Certificates Class A-II-1, Class A-II-2 and Class A-II-3
Certificates.
Subordinated Certificates... Class M-1, Class M-2,
Class M-3, Class M-4, Class M-5, Class
M-6, Class M-7, Class M-8, Class M-9,
Class M-10 and Class M-11 Certificates.
ERISA-Restricted Certificates Class R, Class P and Class
C Certificates, until they have been the
subject of an ERISA-Qualifying
Underwriting; and the Certificates of
any Class that cease to satisfy the
rating requirements of the Underwriter's
Exemption.
LIBOR Certificates All Classes of Certificates other than the Private
Certificates.
Offered Certificates All Classes of Certificates other than the Private
Certificates.
Definitive Certificates Class R, Class P and Class C Certificates.
Private Certificates Class R, Class P and Class C Certificates.
Rating Agencies Xxxxx'x, S&P and Fitch.
Regular Certificates All Classes of Certificates other than the Class R
Certificates.
Residual Certificates Class R Certificates.
References to "CLASS A CERTIFICATES" are references to Certificates of
either or both Certificate Groups of similar designations, as the context
requires.
ARTICLE I
DEFINITIONS
Section 1.01 DEFINITIONS.
Unless the context requires a different meaning, capitalized terms are
used in this Agreement as defined below.
60+ DAY DELINQUENT LOAN: As of any day during any calendar month, each
Mortgage Loan in foreclosure, all REO Property, each Mortgage Loan for which the
Mortgagor has filed for bankruptcy, and each Mortgage Loan with respect to which
any portion of a Scheduled Payment is, as of the last day of the Remittance
Period before the Remittance Period ending in such calendar month, two months or
more past due (without giving effect to any grace period). For instance, in
making a determination on the Distribution Date in October (October 25) with
respect to a Mortgage Loan whose Scheduled Payment for August is delinquent (and
that has no previous Scheduled Payment that is delinquent), that Mortgage Loan
would not be a 60+ Day Delinquent Loan because as of the last day of the
Remittance Period before the Remittance Period ending in October (which would be
the Remittance Period ending in September (on September 1)), the Scheduled
Payment for August (due August 1) would only be one month past due.
ACCRUED CERTIFICATE INTEREST DISTRIBUTION AMOUNT: For any Distribution
Date for each Class of Certificates (other than the Class P, Class R and Class C
Certificates), the amount of interest accrued during the related Interest
Accrual Period at the applicable Pass-Through Rate on the related Class
Certificate Balance immediately before the Distribution Date reduced by any Net
Prepayment Interest Shortfalls and Relief Act Interest Shortfalls for such
Distribution Date allocated to such Class (allocated to each Certificate based
on its respective entitlements to interest irrespective of any Prepayment
Interest Shortfalls or Relief Act Interest Shortfalls for such Distribution
Date).
ADDITION NOTICE: With respect to the transfer of Subsequent Mortgage
Loans to the Trust Fund pursuant to Section 2.07, a notice of the Depositor's
designation of the Subsequent Mortgage Loans to be sold to the Trust Fund and
the aggregate principal balance of such Subsequent Mortgage Loans as of the
related Subsequent Cut-off Date. The Addition Notice shall be given no later
than three (3) Business Days prior to the related Subsequent Transfer Date and
shall be substantially in the form attached hereto as Exhibit P.
ADJUSTED MORTGAGE RATE: As to each Mortgage Loan and at any time, the
per annum rate equal to (x) the Mortgage Rate less (y) the Master Servicing Fee
Rate.
ADJUSTED NET MORTGAGE RATE: As to each Mortgage Loan and at any time,
the per annum rate equal to (x) the Mortgage Rate less (y) the Expense Fee Rate.
ADJUSTMENT DATE: As to any adjustable-rate Mortgage Loan, the first Due
Date on which the related Mortgage Rate adjusts as provided in the related
Mortgage Note and each Due Date thereafter on which the Mortgage Rate adjusts as
provided in the related Mortgage Note.
ADVANCE: The payment required to be made by the Master Servicer for any
Distribution Date pursuant to Section 4.01, the amount of that payment being
equal to the aggregate of payments of principal and interest (net of the Master
Servicing Fee and any net proceeds in the case of any REO Properties) on the
Mortgage Loans that were due during the related Remittance Period and not
received as of the close of business on the related Determination Date, plus an
amount equivalent to interest on each REO Property less the aggregate amount of
any delinquent payments that the Master Servicer has determined would constitute
a Nonrecoverable Advance if advanced.
AFFECTED PARTY: As defined in the Swap Agreement.
AFFILIATE: With respect to any Person, any other Person controlling,
controlled 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. Affiliates also include any entities consolidated
within the requirements of generally accepted accounting principles.
AGREEMENT: This Pooling and Servicing Agreement and all amendments and
supplements hereto.
AMOUNT HELD FOR FUTURE DISTRIBUTION: For any Distribution Date, the
aggregate amount held in the Certificate Account at the close of business on the
related Determination Date on account of (i) Principal Prepayments received
after the end of the related Prepayment Period and Liquidation Proceeds and
Subsequent Recoveries on the Mortgage Loans, in each case, allocable to
principal, received after the end of the preceding calendar month and (ii) all
Scheduled Payments on the Mortgage Loans due after the end of the related
Remittance Period.
APPLIED REALIZED LOSS AMOUNT: For any Distribution Date and any Class
of Subordinated Certificates, the excess of the aggregate Class Certificate
Balance of the Class A and Subordinated Certificates over the aggregate Stated
Principal Balance of all of the Mortgage Loans as of the last day of the
preceding Remittance Period.
AVAILABLE FUNDS: For any Distribution Date,
are the SUM OF:
(i) all scheduled installments of interest (net of the related
Expense Fees) and principal due on the Due Date on the Mortgage Loans in the
related Remittance Period and received by the related Determination Date,
together with any related Advances;
(ii) all Insurance Proceeds, Liquidation Proceeds and Subsequent
Recoveries received during the preceding calendar month (in each case, net of
unreimbursed expenses incurred in connection with a liquidation or foreclosure);
(iii) all partial or full prepayments on the Mortgage Loans received
during the related Prepayment Period together with all Compensating Interest on
those Mortgage Loans and interest paid by the Mortgagors (other than Prepayment
Interest Excess);
(iv) with respect to the Distribution Date immediately following
the end of the Funding Period, any amounts remaining in the Pre-Funding Accounts
after giving effect to any purchase of Subsequent Mortgage Loans;
(v) with respect to each Distribution Date during the Funding
Period and on the Distribution Date immediately following the end of the Funding
Period, any amounts withdrawn by the Trustee from the Interest Coverage Accounts
for distribution on the Certificates on such Distribution Date; and
(vi) amounts received for the Distribution Date as the Substitution
Adjustment Amount or the purchase price of a Deleted Mortgage Loan or a Mortgage
Loan repurchased by the Seller or the Master Servicer as of the Distribution
Date;
MINUS
amounts in reimbursement for Advances previously made with respect to the
Mortgage Loans, reimbursable to the Master Servicer with respect to the Mortgage
Loans pursuant to this Agreement and, as applicable, payable by the Trustee out
of the Distribution Account pursuant to Section 3.09(b); and
MINUS
any Net Swap Payment or Swap Termination Payment owed to the Swap Provider
(other than Swap Termination Payments resulting from a Swap Provider Trigger
Event).
The Holders of the Class P Certificates will be entitled to all
Prepayment Charges received on the Mortgage Loans and such amounts will not be
available for distribution to the Holders of any other Class of Certificates.
BANKRUPTCY CODE: The United States Bankruptcy Reform Act of 1978, as
amended.
BASIC PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, the
EXCESS OF (i) the Principal Remittance Amount for both Loan Groups for the
Distribution Date OVER (ii) the Excess Overcollateralization Amount, if any, for
that Distribution Date.
BOOK-ENTRY CERTIFICATES: As specified in the Preliminary Statement.
BUSINESS DAY: Any day other than (i) a Saturday or a Sunday, or (ii) a
day on which banking institutions in the City of New York, New York, the State
of California or the city in which the Corporate Trust Office of the Trustee is
located are authorized or obligated by law or executive order to be closed.
CAP CONTRACT: The interest rate cap agreement between the Trustee, on
behalf of the Trust Fund, and the Cap Contract Counterparty, relating to the
Class A Certificates and the Subordinated Certificates.
CAP CONTRACT COUNTERPARTY: Bear Xxxxxxx Financial Products Inc.
CERTIFICATE: Any one of the Certificates issued by the Trust Fund and
executed by the Trustee, in substantially the forms attached as exhibits.
CERTIFICATE ACCOUNT: The separate Eligible Account or Accounts created
and maintained by the Master Servicer pursuant to Section 3.06(d) with a
depository institution in the name of the Master Servicer for the benefit of the
Trustee on behalf of Certificateholders and designated "IndyMac Bank, F.S.B., in
trust for the registered holders of Home Equity Mortgage Loan Asset-Backed
Certificates, Series INABS 2005-C."
CERTIFICATE BALANCE: For any Certificate (other than a Class R or a
Class C Certificate) at any date, the maximum dollar amount of principal to
which the Holder of the Certificate is then entitled, such amount being equal to
the Certificate's Denomination PLUS any increases in the Certificate Balance of
such Certificate pursuant to Section 4.02 due to the receipt of Subsequent
Recoveries MINUS all distributions of principal previously made with respect
thereto and, in the case of any Subordinated Certificate, reduced by any Applied
Realized Loss Amounts applicable to any such Subordinated Certificates. The
Class R and Class C Certificates have no Certificate Balance.
CERTIFICATE GROUP: Any of the Group I Certificates or the Group II
Certificates, as applicable.
CERTIFICATE OWNER: With respect to a Book-Entry Certificate, the Person
who is the beneficial owner of the Book-Entry Certificate. For purposes of this
Agreement, in order for a Certificate Owner to enforce any of its rights under
this Agreement, it shall first have to provide evidence of its beneficial
ownership interest in a Certificate that is reasonably satisfactory to the
Trustee, the Supplemental Interest Trust Administrator, the Depositor and/or the
Master Servicer, as applicable.
CERTIFICATE REGISTER: The register maintained pursuant to Section 5.02.
CERTIFICATEHOLDER OR HOLDER: The person in whose name a Certificate is
registered in the Certificate Register, except that, solely for the purpose of
giving any consent pursuant to this Agreement, any Certificate registered in the
name of the Seller, the Depositor or its Affiliate shall not be eligible to vote
or be considered Outstanding and the Percentage Interest evidenced thereby shall
not be taken into account in determining whether the requisite amount of
Percentage Interests necessary to effect a consent has been obtained unless the
Seller, the Depositor or its Affiliates own 100% of the Percentage Interests
evidenced by a Class of Certificates, in which case the Certificates shall be
Outstanding for purposes of any provision of this Agreement requiring the
consent of the Holders of Certificates of a particular Class as a condition to
the taking of any action. The Trustee, the Supplemental Interest Trust
Administrator and the NIM Insurer are entitled to rely conclusively on a
certification of the Depositor or any Affiliate of the Depositor in determining
which Certificates are registered in the name of an Affiliate of the Depositor.
CLASS: All Certificates bearing the same class designation, as
specified in the Preliminary Statement.
CLASS A CERTIFICATES: As specified in the Preliminary Statement.
CLASS A PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, the
sum of the Group I Senior Principal Distribution Amount and the Group II Senior
Principal Distribution Amount for that Distribution Date.
CLASS C DISTRIBUTABLE AMOUNT: On any Distribution Date, the amount that
has accrued on the Class C Certificates but that has not been distributed on the
Class C Certificates on prior Distribution Dates.
CLASS CERTIFICATE BALANCE: For any Class as of any date of
determination, the aggregate of the Certificate Balances of all Certificates of
such Class as of that date.
CLASS IO DISTRIBUTION AMOUNT: As defined in Section 4.05 hereof. For
purposes of clarity, the Class IO Distribution Amount for any Distribution Date
shall equal the amount payable to the Supplemental Interest Trust on such
Distribution Date in excess of the amount payable on the Class IO Interest on
such Distribution Date, all as further provided in Section 4.05 hereof.
CLASS IO INTEREST: An uncertificated interest in the Trust Fund held by
the Trustee, evidencing a REMIC Regular Interest in REMIC IV for purposes of the
REMIC Provisions.
CLASS M-1 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, the
EXCESS OF
(i) the SUM OF
(A) the aggregate Class Certificate Balance of the Class
A Certificates (after taking into account distribution of the Class A
Principal Distribution Amount on such Distribution Date) AND
(B) the Class Certificate Balance of the Class M-1
Certificates immediately before such Distribution Date OVER
(ii) the LESSER OF
(A) 66.70% of the aggregate Stated Principal Balance of
all of the Mortgage Loans as of the last day of the related Remittance
Period (after giving effect to Principal Prepayments received in the
Prepayment Period relating to such Distribution Date) AND
(B) an amount, not less than zero, equal to the aggregate
Stated Principal Balance of all of the Mortgage Loans as of the last
day of the related Remittance Period (after giving effect to Principal
Prepayments received in the Prepayment Period relating to such
Distribution Date) MINUS $3,500,000;
provided, that if on any Distribution Date, the Class M-1 Certificates are the
only Class of Subordinated Certificates outstanding, the Class M-1 Principal
Distribution Amount shall equal the lesser of the Class Certificate Balance of
such Class immediately prior to such Distribution Date and the Principal
Distribution Amount for such Distribution Date.
CLASS M-2 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, the
EXCESS OF
(i) the SUM OF
(A) the aggregate Class Certificate Balance of the Class
A Certificates (after taking into account distribution of the Class A
Principal Distribution Amount on such Distribution Date),
(B) the Class Certificate Balance of the Class M-1
Certificates (after taking into account distribution of the Class M-1
Principal Distribution Amount on such Distribution Date) AND
(C) the Class Certificate Balance of the Class M-2
Certificates immediately before such Distribution Date OVER
(ii) the LESSER OF
(A) 73.10% of the aggregate Stated Principal Balance of
all of the Mortgage Loans as of the last day of the related Remittance
Period (after giving effect to Principal Prepayments received in the
Prepayment Period relating to such Distribution Date) AND
(B) an amount, not less than zero, equal to the aggregate
Stated Principal Balance of all of the Mortgage Loans as of the last
day of the related Remittance Period (after giving effect to Principal
Prepayments received in the Prepayment Period relating to such
Distribution Date) MINUS $3,500,000;
provided, that if on any Distribution Date, the Class M-2 Certificates are the
only Class of Subordinated Certificates outstanding, the Class M-2 Principal
Distribution Amount shall equal the lesser of the Class Certificate Balance of
such Class immediately prior to such Distribution Date and the Principal
Distribution Amount for such Distribution Date.
CLASS M-3 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, the
EXCESS OF
(i) the SUM OF
(A) the aggregate Class Certificate Balance of the Class
A Certificates (after taking into account distribution of the Class A
Principal Distribution Amount on such Distribution Date),
(B) the Class Certificate Balance of the Class M-1
Certificates (after taking into account distribution of the Class M-1
Principal Distribution Amount on such Distribution Date),
(C) the Class Certificate Balance of the Class M-2
Certificates (after taking into account distribution of the Class M-2
Principal Distribution Amount on such Distribution Date) AND
(D) the Class Certificate Balance of the Class M-3
Certificates immediately before such Distribution Date OVER
(ii) the LESSER OF
(A) 77.40% of the aggregate Stated Principal Balance of
all of the Mortgage Loans as of the last day of the related Remittance
Period (after giving effect to Principal Prepayments received in the
Prepayment Period relating to such Distribution Date) AND
(B) an amount, not less than zero, equal to the aggregate
Stated Principal Balance of all of the Mortgage Loans as of the last
day of the related Remittance Period (after giving effect to Principal
Prepayments received in the Prepayment Period relating to such
Distribution Date) MINUS $3,500,000;
provided, that if on any Distribution Date, the Class M-3 Certificates are the
only Class of Subordinated Certificates outstanding, the Class M-3 Principal
Distribution Amount shall equal the lesser of the Class Certificate Balance of
such Class immediately prior to such Distribution Date and the Principal
Distribution Amount for such Distribution Date.
CLASS M-4 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, the
EXCESS OF
(i) the SUM OF
(A) the aggregate Class Certificate Balance of the Class
A Certificates (after taking into account distribution of the Class A
Principal Distribution Amount on such Distribution Date),
(B) the Class Certificate Balance of the Class M-1
Certificates (after taking into account distribution of the Class M-1
Principal Distribution Amount on such Distribution Date),
(C) the Class Certificate Balance of the Class M-2
Certificates (after taking into account distribution of the Class M-2
Principal Distribution Amount on such Distribution Date),
(D) the Class Certificate Balance of the Class M-3
Certificates (after taking into account distribution of the Class M-3
Principal Distribution Amount on such Distribution Date) AND
(E) the Class Certificate Balance of the Class M-4
Certificates immediately before such Distribution Date OVER
(ii) the LESSER OF
(A) 80.60% of the aggregate Stated Principal Balance of
all of the Mortgage Loans as of the last day of the related Remittance
Period (after giving effect to Principal Prepayments received in the
Prepayment Period relating to such Distribution Date) AND
(B) an amount, not less than zero, equal to the aggregate
Stated Principal Balance of all of the Mortgage Loans as of the last
day of the related Remittance Period (after giving effect to Principal
Prepayments received in the Prepayment Period relating to such
Distribution Date) MINUS $3,500,000;
provided, that if on any Distribution Date, the Class M-4 Certificates are the
only Class of Subordinated Certificates outstanding, the Class M-4 Principal
Distribution Amount shall equal the lesser of the Class Certificate Balance of
such Class immediately prior to such Distribution Date and the Principal
Distribution Amount for such Distribution Date.
CLASS M-5 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, the
EXCESS OF
(i) the SUM OF
(A) the aggregate Class Certificate Balance of the Class
A Certificates (after taking into account distribution of the Class A
Principal Distribution Amount on such Distribution Date),
(B) the Class Certificate Balance of the Class M-1
Certificates (after taking into account distribution of the Class M-1
Principal Distribution Amount on such Distribution Date),
(C) the Class Certificate Balance of the Class M-2
Certificates (after taking into account distribution of the Class M-2
Principal Distribution Amount on such Distribution Date),
(D) the Class Certificate Balance of the Class M-3
Certificates (after taking into account distribution of the Class M-3
Principal Distribution Amount on such Distribution Date),
(E) the Class Certificate Balance of the Class M-4
Certificates (after taking into account distribution of the Class M-4
Principal Distribution Amount on such Distribution Date) AND
(F) the Class Certificate Balance of the Class M-5
Certificates immediately before such Distribution Date OVER
(ii) the LESSER OF
(A) 83.80% of the aggregate Stated Principal Balance of
all of the Mortgage Loans as of the last day of the related Remittance
Period (after giving effect to Principal Prepayments received in the
Prepayment Period relating to such Distribution Date) AND
(B) an amount, not less than zero, equal to the aggregate
Stated Principal Balance of all of the Mortgage Loans as of the last
day of the related Remittance Period (after giving effect to Principal
Prepayments received in the Prepayment Period relating to such
Distribution Date) MINUS $3,500,000;
provided, that if on any Distribution Date, the Class M-5 Certificates are the
only Class of Subordinated Certificates outstanding, the Class M-5 Principal
Distribution Amount shall equal the lesser of the Class Certificate Balance of
such Class immediately prior to such Distribution Date and the Principal
Distribution Amount for such Distribution Date.
CLASS M-6 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, the
EXCESS OF
(i) the SUM OF
(A) the aggregate Class Certificate Balance of the Class
A Certificates (after taking into account distribution of the Class A
Principal Distribution Amount on such Distribution Date),
(B) the Class Certificate Balance of the Class M-1
Certificates (after taking into account distribution of the Class M-1
Principal Distribution Amount on such Distribution Date),
(C) the Class Certificate Balance of the Class M-2
Certificates (after taking into account distribution of the Class M-2
Principal Distribution Amount on such Distribution Date),
(D) the Class Certificate Balance of the Class M-3
Certificates (after taking into account distribution of the Class M-3
Principal Distribution Amount on such Distribution Date),
(E) the Class Certificate Balance of the Class M-4
Certificates (after taking into account distribution of the Class M-4
Principal Distribution Amount on such Distribution Date),
(F) the Class Certificate Balance of the Class M-5
Certificates (after taking into account distribution of the Class M-5
Principal Distribution Amount on such Distribution Date) AND
(G) the Class Certificate Balance of the Class M-6
Certificates immediately before such Distribution Date OVER
(ii) the LESSER OF
(A) 86.60% of the aggregate Stated Principal Balance of
all of the Mortgage Loans as of the last day of the related Remittance
Period (after giving effect to Principal Prepayments received in the
Prepayment Period relating to such Distribution Date) AND
(B) an amount, not less than zero, equal to the aggregate
Stated Principal Balance of all of the Mortgage Loans as of the last
day of the related Remittance Period (after giving effect to Principal
Prepayments received in the Prepayment Period relating to such
Distribution Date) MINUS $3,500,000;
provided, that if on any Distribution Date, the Class M-6 Certificates are the
only Class of Subordinated Certificates outstanding, the Class M-6 Principal
Distribution Amount shall equal the lesser of the Class Certificate Balance of
such Class immediately prior to such Distribution Date and the Principal
Distribution Amount for such Distribution Date.
CLASS M-7 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, the
EXCESS OF
(i) the SUM OF
(A) the aggregate Class Certificate Balance of the Class
A Certificates (after taking into account distribution of the Class A
Principal Distribution Amount on such Distribution Date),
(B) the Class Certificate Balance of the Class M-1
Certificates (after taking into account distribution of the Class M-1
Principal Distribution Amount on such Distribution Date),
(C) the Class Certificate Balance of the Class M-2
Certificates (after taking into account distribution of the Class M-2
Principal Distribution Amount on such Distribution Date),
(D) the Class Certificate Balance of the Class M-3
Certificates (after taking into account distribution of the Class M-3
Principal Distribution Amount on such Distribution Date),
(E) the Class Certificate Balance of the Class M-4
Certificates (after taking into account distribution of the Class M-4
Principal Distribution Amount on such Distribution Date),
(F) the Class Certificate Balance of the Class M-5
Certificates (after taking into account distribution of the Class M-5
Principal Distribution Amount on such Distribution Date),
(G) the Class Certificate Balance of the Class M-6
Certificates (after taking into account distribution of the Class M-6
Principal Distribution Amount on such Distribution Date) AND
(H) the Class Certificate Balance of the Class M-7
Certificates immediately before such Distribution Date OVER
(ii) the LESSER OF
(A) 89.60% of the aggregate Stated Principal Balance of
all of the Mortgage Loans as of the last day of the related Remittance
Period (after giving effect to Principal Prepayments received in the
Prepayment Period relating to such Distribution Date) AND
(B) an amount, not less than zero, equal to the aggregate
Stated Principal Balance of all of the Mortgage Loans as of the last
day of the related Remittance Period (after giving effect to Principal
Prepayments received in the Prepayment Period relating to such
Distribution Date) MINUS $3,500,000;
provided, that if on any Distribution Date, the Class M-7 Certificates are the
only Class of Subordinated Certificates outstanding, the Class M-7 Principal
Distribution Amount shall equal the lesser of the Class Certificate Balance of
such Class immediately prior to such Distribution Date and the Principal
Distribution Amount for such Distribution Date.
CLASS M-8 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, the
EXCESS OF
(i) the SUM OF
(A) the aggregate Class Certificate Balance of the Class
A Certificates (after taking into account distribution of the Class A
Principal Distribution Amount on such Distribution Date),
(B) the Class Certificate Balance of the Class M-1
Certificates (after taking into account distribution of the Class M-1
Principal Distribution Amount on such Distribution Date),
(C) the Class Certificate Balance of the Class M-2
Certificates (after taking into account distribution of the Class M-2
Principal Distribution Amount on such Distribution Date),
(D) the Class Certificate Balance of the Class M-3
Certificates (after taking into account distribution of the Class M-3
Principal Distribution Amount on such Distribution Date),
(E) the Class Certificate Balance of the Class M-4
Certificates (after taking into account distribution of the Class M-4
Principal Distribution Amount on such Distribution Date),
(F) the Class Certificate Balance of the Class M-5
Certificates (after taking into account distribution of the Class M-5
Principal Distribution Amount on such Distribution Date),
(G) the Class Certificate Balance of the Class M-6
Certificates (after taking into account distribution of the Class M-6
Principal Distribution Amount on such Distribution Date),
(H) the Class Certificate Balance of the Class M-7
Certificates (after taking into account distribution of the Class M-7
Principal Distribution Amount on such Distribution Date) AND
(I) the Class Certificate Balance of the Class M-8
Certificates immediately before such Distribution Date OVER
(ii) the LESSER OF
(A) 91.70% of the aggregate Stated Principal Balance of
all of the Mortgage Loans as of the last day of the related Remittance
Period (after giving effect to Principal Prepayments received in the
Prepayment Period relating to such Distribution Date) AND
(B) an amount, not less than zero, equal to the aggregate
Stated Principal Balance of all of the Mortgage Loans as of the last
day of the related Remittance Period (after giving effect to Principal
Prepayments received in the Prepayment Period relating to such
Distribution Date) MINUS $3,500,000;
provided, that if on any Distribution Date, the Class M-8 Certificates are the
only Class of Subordinated Certificates outstanding, the Class M-8 Principal
Distribution Amount shall equal the lesser of the Class Certificate Balance of
such Class immediately prior to such Distribution Date and the Principal
Distribution Amount for such Distribution Date.
CLASS M-9 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, the
EXCESS OF
(i) the SUM OF
(A) the aggregate Class Certificate Balance of the Class
A Certificates (after taking into account distribution of the Class A
Principal Distribution Amount on such Distribution Date),
(B) the Class Certificate Balance of the Class M-1
Certificates (after taking into account distribution of the Class M-1
Principal Distribution Amount on such Distribution Date),
(C) the Class Certificate Balance of the Class M-2
Certificates (after taking into account distribution of the Class M-2
Principal Distribution Amount on such Distribution Date),
(D) the Class Certificate Balance of the Class M-3
Certificates (after taking into account distribution of the Class M-3
Principal Distribution Amount on such Distribution Date),
(E) the Class Certificate Balance of the Class M-4
Certificates (after taking into account distribution of the Class M-4
Principal Distribution Amount on such Distribution Date),
(F) the Class Certificate Balance of the Class M-5
Certificates (after taking into account distribution of the Class M-5
Principal Distribution Amount on such Distribution Date),
(G) the Class Certificate Balance of the Class M-6
Certificates (after taking into account distribution of the Class M-6
Principal Distribution Amount on such Distribution Date),
(H) the Class Certificate Balance of the Class M-7
Certificates (after taking into account distribution of the Class M-7
Principal Distribution Amount on such Distribution Date),
(I) the Class Certificate Balance of the Class M-8
Certificates (after taking into account distribution of the Class M-8
Principal Distribution Amount on such Distribution Date) AND
(J) the Class Certificate Balance of the Class M-9
Certificates immediately before such Distribution Date OVER
(ii) the LESSER OF
(A) 93.50% of the aggregate Stated Principal Balance of
all of the Mortgage Loans as of the last day of the related Remittance
Period (after giving effect to Principal Prepayments received in the
Prepayment Period relating to such Distribution Date) AND
(B) an amount, not less than zero, equal to the aggregate
Stated Principal Balance of all of the Mortgage Loans as of the last
day of the related Remittance Period (after giving effect to Principal
Prepayments received in the Prepayment Period relating to such
Distribution Date) MINUS $3,500,000;
provided, that if on any Distribution Date, the Class M-9 Certificates are the
only Class of Subordinated Certificates outstanding, the Class M-9 Principal
Distribution Amount shall equal the lesser of the Class Certificate Balance of
such Class immediately prior to such Distribution Date and the Principal
Distribution Amount for such Distribution Date.
CLASS M-10 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date,
the EXCESS OF
(i) the SUM OF
(A) the aggregate Class Certificate Balance of the Class
A Certificates (after taking into account distribution of the Class A
Principal Distribution Amount on such Distribution Date),
(B) the Class Certificate Balance of the Class M-1
Certificates (after taking into account distribution of the Class M-1
Principal Distribution Amount on such Distribution Date),
(C) the Class Certificate Balance of the Class M-2
Certificates (after taking into account distribution of the Class M-2
Principal Distribution Amount on such Distribution Date),
(D) the Class Certificate Balance of the Class M-3
Certificates (after taking into account distribution of the Class M-3
Principal Distribution Amount on such Distribution Date),
(E) the Class Certificate Balance of the Class M-4
Certificates (after taking into account distribution of the Class M-4
Principal Distribution Amount on such Distribution Date),
(F) the Class Certificate Balance of the Class M-5
Certificates (after taking into account distribution of the Class M-5
Principal Distribution Amount on such Distribution Date),
(G) the Class Certificate Balance of the Class M-6
Certificates (after taking into account distribution of the Class M-6
Principal Distribution Amount on such Distribution Date),
(H) the Class Certificate Balance of the Class M-7
Certificates (after taking into account distribution of the Class M-7
Principal Distribution Amount on such Distribution Date),
(I) the Class Certificate Balance of the Class M-8
Certificates (after taking into account distribution of the Class M-8
Principal Distribution Amount on such Distribution Date),
(J) the Class Certificate Balance of the Class M-9
Certificates (after taking into account distribution of the Class M-9
Principal Distribution Amount on such Distribution Date) AND
(K) the Class Certificate Balance of the Class M-10
Certificates immediately before such Distribution Date OVER
(ii) the LESSER OF
(A) 94.20% of the aggregate Stated Principal Balance of
all of the Mortgage Loans as of the last day of the related Remittance
Period (after giving effect to Principal Prepayments received in the
Prepayment Period relating to such Distribution Date) AND
(B) an amount, not less than zero, equal to the aggregate
Stated Principal Balance of all of the Mortgage Loans as of the last
day of the related Remittance Period (after giving effect to Principal
Prepayments received in the Prepayment Period relating to such
Distribution Date) MINUS $3,500,000;
provided, that if on any Distribution Date, the Class M-10 Certificates are the
only Class of Subordinated Certificates outstanding, the Class M-10 Principal
Distribution Amount shall equal the lesser of the Class Certificate Balance of
such Class immediately prior to such Distribution Date and the Principal
Distribution Amount for such Distribution Date.
CLASS M-11 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date,
the EXCESS OF
(i) the SUM OF
(A) the aggregate Class Certificate Balance of the Class
A Certificates (after taking into account distribution of the Class A
Principal Distribution Amount on such Distribution Date),
(B) the Class Certificate Balance of the Class M-1
Certificates (after taking into account distribution of the Class M-1
Principal Distribution Amount on such Distribution Date),
(C) the Class Certificate Balance of the Class M-2
Certificates (after taking into account distribution of the Class M-2
Principal Distribution Amount on such Distribution Date),
(D) the Class Certificate Balance of the Class M-3
Certificates (after taking into account distribution of the Class M-3
Principal Distribution Amount on such Distribution Date),
(E) the Class Certificate Balance of the Class M-4
Certificates (after taking into account distribution of the Class M-4
Principal Distribution Amount on such Distribution Date),
(F) the Class Certificate Balance of the Class M-5
Certificates (after taking into account distribution of the Class M-5
Principal Distribution Amount on such Distribution Date),
(G) the Class Certificate Balance of the Class M-6
Certificates (after taking into account distribution of the Class M-6
Principal Distribution Amount on such Distribution Date),
(H) the Class Certificate Balance of the Class M-7
Certificates (after taking into account distribution of the Class M-7
Principal Distribution Amount on such Distribution Date),
(I) the Class Certificate Balance of the Class M-8
Certificates (after taking into account distribution of the Class M-8
Principal Distribution Amount on such Distribution Date),
(J) the Class Certificate Balance of the Class M-9
Certificates (after taking into account distribution of the Class M-9
Principal Distribution Amount on such Distribution Date),
(K) the Class Certificate Balance of the Class M-10
Certificates (after taking into account distribution of the Class M-10
Principal Distribution Amount on such Distribution Date) AND
(L) the Class Certificate Balance of the Class M-11
Certificates immediately before such Distribution Date OVER
(ii) the LESSER OF
(A) 96.20% of the aggregate Stated Principal Balance of
all of the Mortgage Loans as of the last day of the related Remittance
Period (after giving effect to Principal Prepayments received in the
Prepayment Period relating to such Distribution Date) AND
(B) an amount, not less than zero, equal to the aggregate
Stated Principal Balance of all of the Mortgage Loans as of the last
day of the related Remittance Period (after giving effect to Principal
Prepayments received in the Prepayment Period relating to such
Distribution Date) MINUS $3,500,000;
provided, that if on any Distribution Date, the Class M-11 Certificates are the
only Class of Subordinated Certificates outstanding, the Class M-11 Principal
Distribution Amount shall equal the lesser of the Class Certificate Balance of
such Class immediately prior to such Distribution Date and the Principal
Distribution Amount for such Distribution Date.
CLASS R CERTIFICATE: A certificate representing the beneficial
ownership of the Class R-I Interest, Class R-II Interest and Class R-III
Interest.
CLASS R-I INTEREST: The uncertificated residual interest in REMIC I.
CLASS R-II INTEREST: The uncertificated residual interest in REMIC II.
CLASS R-III INTEREST: The uncertificated residual interest in REMIC
III.
CLASS R-IV INTEREST: The uncertificated residual interest in REMIC IV.
CLOSING DATE: September 29, 2005.
CLOSING DATE MORTGAGE LOAN: Each Mortgage Loan sold and assigned by the
Seller to the Trust Fund on the Closing Date.
CODE: The United States Internal Revenue Code of 1986, including any
successor or amendatory provisions.
COLLATERAL VALUE: For any Mortgage Loan, the Collateral Value of the
related Mortgaged Property shall be, other than for Refinance Loans, the LESSER
OF (i) the appraised value determined in an appraisal obtained by the originator
at origination of the Mortgage Loan AND (ii) the sales price for the related
Mortgaged Property. In the case of a Refinance Loan, the Collateral Value of the
related Mortgaged Property is its appraised value determined in an appraisal
obtained at the time of refinancing.
COLLECTION ACCOUNT: The separate Eligible Account or Accounts created
and maintained by the Master Servicer pursuant to Section 3.06(c) with a
depository institution in the name of the Master Servicer for the benefit of the
Trustee on behalf of the Certificateholders and designated "IndyMac Bank,
F.S.B., in trust for the registered holders of Home Equity Mortgage Loan
Asset-Backed Certificates, Series INABS 2005-C."
COMPENSATING INTEREST: For any Distribution Date, the LESSER OF (i) any
Prepayment Interest Shortfalls AND (ii) 0.125% multiplied by one-twelfth
multiplied by the aggregate Stated Principal Balance of the Mortgage Loans as of
the first day of the prior month.
CORPORATE TRUST OFFICE: The designated office of the Trustee and the
Supplemental Interest Trust Administrator in the State of California at which at
any particular time its corporate trust business with respect to this Agreement
is administered, which office at the date of the execution of this Agreement is
located at 0000 Xxxx Xx. Xxxxxx Xxxxx, Xxxxx Xxx, Xxxxxxxxxx 00000, Attn:
Corporate Trust Administration IN05S3 (IndyMac ABS, Inc., Home Equity Mortgage
Loan Asset-Backed Trust, Series INABS 2005-C), facsimile no. (000) 000-0000 and
which is the address to which notices to and correspondence with the Trustee or
the Supplemental Interest Trust Administrator should be directed.
CORRESPONDING CERTIFICATE: With respect to each REMIC III Regular
Interest, as follows:
REMIC III Regular Interest Class
-------------------------- -----
REMIC III Regular Interest LTAI1 A-I-1
REMIC III Regular Interest LTAII1 A-II-1
REMIC III Regular Interest LTAII2 A-II-2
REMIC III Regular Interest LTAII3 A-II-3
REMIC III Regular Interest LTM1 M-1
REMIC III Regular Interest LTM2 M-2
REMIC III Regular Interest LTM3 M-3
REMIC III Regular Interest LTM4 M-4
REMIC III Regular Interest LTM5 M-5
REMIC III Regular Interest LTM6 M-6
REMIC III Regular Interest LTM7 M-7
REMIC III Regular Interest LTM8 M-8
REMIC III Regular Interest LTM9 M-9
REMIC III Regular Interest LTM10 M-10
REMIC III Regular Interest LTM11 M-11
REMIC III Regular Interest LTP P
CREDIT ENHANCEMENT PERCENTAGE: For any Distribution Date and any Class
of Class A or Subordinated Certificates, the percentage obtained by dividing (x)
the SUM OF (i) the aggregate Class Certificate Balances of all Classes of Class
A and Subordinated Certificates subordinated to such Class and (ii) the
Overcollateralization Amount (in each case taking into account the distributions
of the Principal Distribution Amount for such Distribution Date) by (y) the
aggregate Stated Principal Balance of the Mortgage Loans as of the last day of
the related Remittance Period (after giving effect to scheduled payments of
principal due during the Remittance Period, to the extent received or advanced,
and Principal Prepayments received in the Prepayment Period related to such
Distribution Date) and any amounts on deposit in the Pre-Funding Accounts.
CUMULATIVE NET LOSS TRIGGER EVENT: With respect to any Distribution
Date on or after the Stepdown Date, the percentage obtained by dividing (x) the
aggregate amount of Realized Losses incurred from the Cut-off Date through the
last day of the related Remittance Period (reduced by the aggregate amount of
Subsequent Recoveries received through the last day of that Remittance Period)
by (y) the aggregate Cut-off Date Principal Balance of the Closing Date Mortgage
Loans plus the Original Pre-Funded Amounts exceeds (a) 1.20% of the aggregate
Stated Principal Balance of the Mortgage Loans with respect to the Distribution
Date in October 2007, plus an additional 1/12th of 1.45% of the aggregate Stated
Principal Balance of the Mortgage Loans for each Distribution Date occurring in
each month thereafter to and including the Distribution Date in September 2008,
(b) 2.65% of the aggregate Stated Principal Balance of the Mortgage Loans with
respect to the Distribution Date occurring in October 2008, plus an additional
1/12th of 1.50% of the aggregate Stated Principal Balance of the Mortgage Loans
for each Distribution Date occurring in each month thereafter to and including
the Distribution Date in September 2009, (c) 4.15% of the aggregate Stated
Principal Balance of the Mortgage Loans with respect to the Distribution Date
occurring in October 2009, plus an additional 1/12th of 1.25% of the aggregate
Stated Principal Balance of the Mortgage Loans for each Distribution Date
occurring in each month thereafter to and including the Distribution Date in
September 2010, (d) 5.40% of the aggregate Stated Principal Balance of the
Mortgage Loans with respect to the Distribution Date occurring in October 2010,
plus an additional 1/12th of 0.65% of the aggregate Stated Principal Balance of
the Mortgage Loans for each Distribution Date occurring in each month thereafter
to and including the Distribution Date in September 2011, (e) 6.05% of the
aggregate Stated Principal Balance of the Mortgage Loans with respect to the
Distribution Date occurring in October 2011, plus an additional 1/12th of 0.05%
of the aggregate Stated Principal Balance of the Mortgage Loans for each
Distribution Date occurring in each month thereafter to and including the
Distribution Date in September 2012 and (f) 6.10% of the aggregate Stated
Principal Balance of the Mortgage Loans with respect to the Distribution Date
occurring in October 2012 and each month thereafter.
CUT-OFF DATE: As to any Closing Date Mortgage Loans, September 1, 2005.
As to any Subsequent Mortgage Loans, the related Subsequent Cut-off Date.
CUT-OFF DATE PRINCIPAL BALANCE: As to any Mortgage Loan, its Stated
Principal Balance as of the close of business on the Cut-off Date.
DEBT SERVICE REDUCTION: For any Mortgage Loan, a reduction by a court
of competent jurisdiction, in a proceeding under the Bankruptcy Code, in the
Scheduled Payment for the Mortgage Loan that became final and non-appealable,
but not including a reduction (i) resulting from a Deficient Valuation or (ii)
that results in a permanent forgiveness of principal.
DEFAULTING PARTY: As defined in the Swap Agreement.
DEFICIENT VALUATION: For any Mortgage Loan, a valuation by a court of
competent jurisdiction of the related Mortgaged Property in an amount less than
the then outstanding indebtedness under such Mortgage Loan, or any reduction in
the amount of principal to be paid in connection with any Scheduled Payment,
that results in a permanent forgiveness of principal, which valuation or
reduction results from an order of the court that is final and non-appealable in
a proceeding under the Bankruptcy Code.
DEFINITIVE CERTIFICATES: As specified in the Preliminary Statement..
DELAYED DELIVERY CERTIFICATION: A certification substantially in the
form of Exhibit G-2.
DELAYED DELIVERY MORTGAGE LOANS: The Closing Date Mortgage Loans
identified on the Mortgage Loan Schedule, for which neither a related Mortgage
File nor the Mortgage Note (or lost note affidavit for a lost Mortgage Note) has
been delivered to the Trustee by the Closing Date. The Depositor shall deliver
the Mortgage Files to the Trustee:
(A) for at least 70% of the Closing Date Mortgage Loans in each
Loan Group, not later than the Closing Date; and
(B) for the remaining 30% of the Closing Date Mortgage Loans in
each Loan Group, not later than five (5) Business Days following the Closing
Date.
To the extent that the Seller is in possession of any Mortgage File for
any Delayed Delivery Mortgage Loan, until delivery of the Mortgage File to the
Trustee as provided in Section 2.01, the Seller shall hold the files as Master
Servicer, as agent and in trust for the Trustee.
DELETED MORTGAGE LOAN: As defined in Section 2.03(c).
DENOMINATION: For each Certificate, the amount appearing on the face of
the Certificate as the "Initial Certificate Balance of this Certificate" or the
Percentage Interest appearing on the face of the Certificate.
DEPOSITOR: IndyMac ABS, Inc., a Delaware corporation, or its successor
in interest.
DEPOSITORY: The initial Depository shall be The Depository Trust
Company, the nominee of which is Cede & Co., as the registered Holder of the
Book-Entry Certificates. The Depository shall at all times be a "clearing
corporation" as defined in Section 8-102(a)(5) of the Uniform Commercial Code of
the State of New York.
DEPOSITORY PARTICIPANT: A broker, dealer, bank, or other financial
institution or other Person for whom from time to time a Depository effects
book-entry transfers and pledges of securities deposited with the Depository.
DETERMINATION DATE: As to any Distribution Date, the 18th day of each
month or, if that day is not a Business Day, the next Business Day, except that
if the next Business Day is less than two (2) Business Days before the related
Distribution Date, then the Determination Date shall be the Business Day
preceding the 18th day of the month.
DISTRIBUTION ACCOUNT: The separate Eligible Account created and
maintained by the Trustee pursuant to Section 3.06(f) in the name of the Trustee
for the benefit of the Certificateholders and designated "Deutsche Bank National
Trust Company in trust for registered holders of IndyMac Home Equity Mortgage
Loan Asset-Backed Certificates, Series INABS 2005-C." Funds in the Distribution
Account shall be held in trust for the Certificateholders for the uses and
purposes set forth in this Agreement.
DISTRIBUTION ACCOUNT DEPOSIT DATE: As to any Distribution Date, 12:30
p.m. (Pacific time) on the Business Day preceding the Distribution Date.
DISTRIBUTION DATE: The 25th day of each calendar month after the
initial issuance of the Certificates, or if that day is not a Business Day, the
next Business Day, commencing in October 2005.
DUE DATE: For any Mortgage Loan and Distribution Date, the first day of
the month in which the Distribution Date occurs.
ELIGIBLE ACCOUNT: Any of
(i) an account maintained with a federal or state chartered
depository institution or trust company, the short-term unsecured debt
obligations of which (or, in the case of a depository institution or trust
company that is the principal subsidiary of a holding company, the debt
obligations of the holding company, but only if Xxxxx'x is not a Rating Agency)
have the highest short-term ratings of each Rating Agency at the time any
amounts are held on deposit therein, or
(ii) [RESERVED], or
(iii) a trust account or accounts maintained with the trust
department of a federal or state chartered depository institution or trust
company, acting in its fiduciary capacity, or
(iv) any other account acceptable to each Rating Agency without
reduction or withdrawal of their then current ratings of the Certificates or any
NIM Insurer-guaranteed NIM Notes, as evidenced by a letter from each Rating
Agency to the Trustee and the NIM Insurer.
Eligible Accounts may bear interest, and may include, if otherwise
qualified under this definition, accounts maintained with the Trustee.
ERISA: The Employee Retirement Income Security Act of 1974, as amended.
ERISA-QUALIFYING UNDERWRITING: A best efforts or firm commitment
underwriting or private placement that meets the requirements of an
Underwriter's Exemption.
ERISA-RESTRICTED CERTIFICATE: As specified in the Preliminary
Statement.
ESCROW ACCOUNT: The Eligible Account or Accounts established and
maintained pursuant to Section 3.07(a).
EVENT OF DEFAULT: As defined in Section 7.01.
EXCESS OVERCOLLATERALIZATION AMOUNT: For any Distribution Date, the
EXCESS OF (a) the Overcollateralization Amount on such Distribution Date OVER
(b) the Overcollateralization Target Amount for such Distribution Date.
EXCESS PROCEEDS: For any Liquidated Mortgage Loan, the EXCESS OF
(a) all Liquidation Proceeds from the Mortgage Loan received in
the calendar month in which the Mortgage Loan became a Liquidated Mortgage Loan,
net of any amounts previously reimbursed to the Master Servicer as
Nonrecoverable Advances with respect to the Mortgage Loan pursuant to Section
3.09(a)(ii), OVER
(b) the SUM OF (i) the unpaid principal balance of the Liquidated
Mortgage Loan as of the Due Date in the month in which the Mortgage Loan became
a Liquidated Mortgage Loan PLUS (ii) accrued interest at the Mortgage Rate from
the Due Date for which interest was last paid or advanced (and not reimbursed)
to Certificateholders up to the Due Date applicable to the Distribution Date
following the calendar month during which the liquidation occurred.
EXCESS RESERVE FUND ACCOUNT: The separate Eligible Account created and
maintained by the Trustee pursuant to Section 3.06(d) in the name of the Trustee
for the benefit of the Certificateholders and designated "Deutsche Bank National
Trust Company in trust for registered holders of IndyMac Home Equity Mortgage
Loan Asset-Backed Trust, Series INABS 2005-C." Funds in the Excess Reserve Fund
Account shall be held in trust for the Certificateholders for the uses and
purposes set forth in this Agreement. The Excess Reserve Fund Account will not
be an asset of any REMIC.
EXCHANGE ACT: The Securities Exchange Act of 1934, as amended.
EXPENSE ADJUSTED NET MAXIMUM MORTGAGE RATE: For any Distribution Date,
the per annum rate equal to the weighted average of the Maximum Mortgage Rates
of each Mortgage Loan minus the Expense Fee Rate.
EXPENSE AMOUNT: For any Distribution Date and Loan Group, the PRODUCT
OF the Expense Fee Rate and the SUM OF the Stated Principal Balances of the
Mortgage Loans in that Loan Group as of the Due Date occurring in the prior
calendar month.
EXPENSE FEES: As to each Mortgage Loan, the SUM OF the Master Servicing
Fee and Trustee Fee.
EXPENSE FEE RATE: As to each Mortgage Loan, the SUM OF the Master
Servicing Fee Rate and the Trustee Fee Rate.
EXTRA PRINCIPAL DISTRIBUTION AMOUNT: As of any Distribution Date, the
LESSER OF (x) the Total Monthly Excess Spread for that Distribution Date and and
(y) the Overcollateralization Deficiency for that Distribution Date.
FDIC: The Federal Deposit Insurance Corporation, or any successor
thereto.
FHLMC: The Federal Home Loan Mortgage Corporation, a corporate
instrumentality of the United States created and existing under Title III of the
Emergency Home Finance Act of 1970, as amended, or any successor thereto.
FITCH: Fitch, Inc., or any successor thereto. If Fitch is designated as
a Rating Agency in the Preliminary Statement, for purposes of Section 10.05(b)
the address for notices to Fitch shall be Fitch, Inc., Xxx Xxxxx Xxxxxx Xxxxx,
Xxx Xxxx, Xxx Xxxx 00000, Attention: MBS Monitoring - IndyMac INABS 2005-C, or
any other address Fitch furnishes to the Depositor and the Master Servicer.
FNMA: The Federal National Mortgage Association, a federally chartered
and privately owned corporation organized and existing under the Federal
National Mortgage Association Charter Act, or any successor thereto.
FUNDING PERIOD: The period beginning on the Closing Date and ending on
the earlier to occur of (i) the date upon which the amount on deposit in the
Pre-Funding Accounts has been reduced to zero or (ii) October 31, 2005.
GROUP I ALLOCATION PERCENTAGE: For any Distribution Date, the
percentage equivalent of a fraction, the numerator of which is aggregate Stated
Principal Balance of the Group I Mortgage Loans plus any amounts on deposit in
the Group I Pre-Funding Account and the denominator of which is the sum of the
aggregate Stated Principal Balance of the Group I Mortgage Loans and the Group
II Mortgage Loans plus any amounts on deposit in the Pre-Funding Accounts.
GROUP I CERTIFICATES: As specified in the Preliminary Statement.
GROUP I INTEREST COVERAGE ACCOUNT: The account established and
maintained pursuant to Section 3.23, which account contains an amount, to be
paid by the Depositor to the Trustee on the Closing Date, that represents
interest received or advanced on the Group I Mortgage Loans.
GROUP I INTEREST REMITTANCE AMOUNT: For any Distribution Date, the
portion of the Available Funds with respect to Loan Group I that is attributable
to interest or amounts withdrawn from the Group I Interest Coverage Account,
less an amount equal to the product of (x) any Net Swap Payment or Swap
Termination Payment (not due to a Swap Provider Trigger Event) deposited in the
Supplemental Interest Trust for payment to the Swap Provider and (y) the Group I
Allocation Percentage.
GROUP I MAXIMUM CAP: For the Group I Certificates as of any
Distribution Date, the per annum rate (subject to adjustment based on the actual
number of days elapsed in the related Interest Accrual Period) equal to (i) the
sum of (x) the weighted average of the Expense Adjusted Net Maximum Mortgage
Rates of the Group I Mortgage Loans and (y) any Net Swap Payment made by the
Swap Provider, if any, multiplied by the Group I Allocation Percentage divided
by (ii) the aggregate Stated Principal Balance of the Mortgage Loans.
GROUP I MORTGAGE LOANS: The Mortgage Loans in Loan Group I.
GROUP I NET WAC CAP: For each Class of Group I Certificates as of any
Distribution Date, the per annum rate (subject to adjustment based on the actual
number of days elapsed in the related Interest Accrual Period) equal to a
fraction, expressed as a percentage, (A) the numerator of which is equal to the
sum of (i) the amount of interest which accrued on the Group I Mortgage Loans in
the prior calendar month and (ii) any amount withdrawn from the Group I Interest
Coverage Account, if any, for such Distribution Date minus (x) the Expense Fee
Rate payable with respect to the Group I Mortgage Loans for such Distribution
Date and (y) any Net Swap Payment or Swap Termination Payment (only if such Swap
Termination Payment was not due to a Swap Provider Trigger Event) deposited in
the Supplemental Interest Trust for payment to the Swap Provider, if any,
multiplied by the Group I Allocation Percentage and (B) the denominator of which
is equal to the sum of (i) the aggregate Stated Principal Balance of the Group I
Mortgage Loans as of the last day of the immediately preceding Remittance
Period, after giving effect to principal prepayments received during the related
Prepayment Period and (ii) the amount on deposit in the Group I Pre-Funding
Account.
For federal income tax purposes, the equivalent of the foregoing shall
be expressed as the weighted average of the REMIC III Remittance Rate on REMIC
III Regular Interest LT1GRP, weighted on the basis of the Uncertificated Balance
of such REMIC III Regular Interest.
GROUP I PRE-FUNDING ACCOUNT: The account established and maintained
pursuant to Section 3.22.
GROUP I PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date is the
PRODUCT OF:
(x) the Principal Distribution Amount for such
Distribution Date
AND
(y) a fraction, the numerator of which is the Principal
Remittance Amount for Loan Group I for that Distribution Date and the
denominator of which is the Principal Remittance Amount for both Loan
Groups for such Distribution Date;
PLUS, in the case of the Distribution Date immediately following the
end of the Funding Period, any amounts remaining in the Group I
Pre-Funding Account and not used by the Trustee to purchase Subsequent
Mortgage Loans to be included in Loan Group I.
GROUP I SENIOR PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution
Date, the EXCESS OF
(A) the aggregate Class Certificate Balance of the Group
I Certificates immediately before that Distribution Date OVER
(B) the LESSER of (x) 59.40% of the aggregate Stated
Principal Balance of all of the Group I Mortgage Loans as of the last
day of the related Remittance Period (after giving effect to Principal
Prepayments received in the Prepayment Period related to such
Distribution Date) and (y) an amount, not less than zero, equal to the
aggregate Stated Principal Balance of all of the Group I Mortgage Loans
as of the last day of the related Remittance Period (after giving
effect to Principal Prepayments received in the Prepayment Period
related to that Distribution Date) MINUS $1,687,547.
GROUP II ALLOCATION PERCENTAGE: For any Distribution Date, the
percentage equivalent of a franction, the numerator of which is the aggregate
Stated Principal Balance of the Group II Mortgage Loans plus any amounts on
deposit in the Group II Pre-Funding Account and the denominator of which is the
sum of the aggregate Stated Principal Balance of the Group I Mortgage Loans and
the Group II Mortgage Loans plus any amounts on deposit in the Pre-Funding
Accounts.
GROUP II CERTIFICATES: As specified in the Preliminary Statement.
GROUP II INTEREST COVERAGE ACCOUNT: The account established and
maintained pursuant to Section 3.23, which account contains an amount, to be
paid by the Depositor to the Trustee on the Closing Date, that represents
interest received or advanced on the Group II Mortgage Loans.
GROUP II INTEREST REMITTANCE AMOUNT: For any Distribution Date, the
portion of the Available Funds with respect to Loan Group II that is
attributable to interest or withdrawn from the Group II Interest Coverage
Account, less an amount equal to the product of (x) any Net Swap Payment or Swap
Termination Payment (not due to a Swap Provider Trigger Event) deposited in the
Supplemental Interest Trust for payment to the Swap Provider and (y) the Group
II Allocation Percentage.
GROUP II MAXIMUM CAP: For each Class of Group II Certificates as of any
Distribution Date, the per annum rate (subject to adjustment based on the actual
number of days elapsed in the related Interest Accrual Period) equal to (i) the
sum of (x) the weighted average of the Expense Adjusted Net Maximum Mortgage
Rates of the Group II Mortgage Loans and (y) any Net Swap Payment made by the
Swap Provider, if any, multiplied by the Group II Allocation Percentage divided
by (ii) the aggregate Stated Princpal Balance of the Mortgage Loans.
GROUP II MORTGAGE LOANS: The Mortgage Loans in Loan Group II.
GROUP II NET WAC CAP: For each Class of Group II Certificates as of any
Distribution Date, the per annum rate (subject to adjustment based on the actual
number of days elapsed in the related Interest Accrual Period) equal to a
fraction, expressed as a percentage, (A) the numerator of which is equal to the
sum of (i) the amount of interest which accrued on the Group II Mortgage Loans
in the prior calendar month and (ii) any amount withdrawn from the Group II
Interest Coverage Account, if any, for such Distribution Date minus (x) the
Expense Fee Rate payable with respect to the Group II Mortgage Loans for such
Distribution Date and (y) any Net Swap Payment or Swap Termination Payment (only
if such Swap Termination Payment was not due to a Swap Provider Trigger Event)
deposited in the Supplemental Interest Trust for payment to the Swap Provider,
if any, multiplied by the Group II Allocation Percentage and (B) the denominator
of which is equal to the sum of (i) the aggregate Stated Principal Balance of
the Group II Mortgage Loans as of the last day of the immediately preceding
Remittance Period, after giving effect to principal prepayments received during
the related Prepayment Period and (ii) the amount on deposit in the Group II
Pre-Funding Account.
For federal income tax purposes, the equivalent of the foregoing shall
be expressed as the weighted average of the REMIC III Remittance Rate on REMIC
III Regular Interest LT2GRP, weighted on the basis of the Uncertificated Balance
of such REMIC III Regular Interest.
GROUP II PRE-FUNDING ACCOUNT: The account established and maintained
pursuant to Section 3.22.
GROUP II PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date is
the PRODUCT OF:
(x) the Principal Distribution Amount for such
Distribution Date
AND
(y) a fraction, the numerator of which is the Principal
Remittance Amount for Loan Group II for that Distribution Date and the
denominator of which is the Principal Remittance Amount for both Loan
Groups for such Distribution Date;
PLUS, in the case of the Distribution Date immediately following the end of the
Funding Period, any amounts remaining in the Group II Pre-Funding Account and
not used by the Trustee to purchase Subsequent Mortgage Loans to be included in
Loan Group II.
GROUP II SENIOR PRINCIPAL DISTRIBUTION AMOUNT is the EXCESS OF
(A) the aggregate Class Certificate Balance of the Group
II Certificates immediately before that Distribution Date OVER
(B) the lesser of (x) 59.40% of the aggregate Stated
Principal Balance of all the Group II Mortgage Loans as of the last day
of the related Remittance Period (after giving effect to Principal
Prepayments received in the Prepayment Period related to that
Distribution Date) and (y) an amount, not less than zero, equal to the
aggregate Stated Principal Balance of all the Group II Mortgage Loans
as of the last day of the related Remittance Period (after giving
effect to Principal Prepayments received in the Prepayment Period
related to that Distribution Date) MINUS $1,812,453.
INDENTURE: The indenture, or document of similar import, if any,
pursuant to which any NIM Notes are issued.
INDEX: As to each adjustable-rate Mortgage Loan, the index from time to
time in effect for the adjustment of the Mortgage Rate set forth as such on the
related Mortgage Note.
INDIRECT PARTICIPANT: A broker, dealer, bank, or other financial
institution or other Person that clears through or maintains a custodial
relationship with a Depository Participant.
INITIAL GROUP I MORTGAGE LOANS: The Closing Date Mortgage Loans in Loan
Group I.
INITIAL GROUP II MORTGAGE LOANS: The Closing Date Mortgage Loans in
Loan Group II.
INSURANCE POLICY: For any Mortgage Loan included in the Trust Fund, any
insurance policy, including all its riders and endorsements in effect, including
any replacement policy or policies for any Insurance Policies.
INSURANCE PROCEEDS: Proceeds paid by an insurer pursuant to any
Insurance Policy, in each case other than any amount included in such Insurance
Proceeds in respect of Insured Expenses or released to the Mortgagor.
INSURED EXPENSES: Expenses covered by an Insurance Policy or any other
insurance policy with respect to the Mortgage Loans.
INTEREST ACCRUAL PERIOD: For each Class of Class A and Subordinated
Certificates and the corresponding class of lower-tier interest and any
Distribution Date, the period from the Distribution Date in the month preceding
the month in which the Distribution Date occurs to the day prior to such
Distribution Date (or in the case of the first Distribution Date, the period
from the Closing Date to the day prior to the first Distribution Date). For
purposes of computing interest accruals on each Class of Class A and
Subordinated Certificates and the corresponding class of lower-tier interest,
each Interest Accrual Period has the actual number of days in the month and each
year is assumed to have 360 days.
INTEREST COVERAGE ACCOUNTS: The Group I Interest Coverage Account and
the Group II Interest Coverage Account.
LENDER PMI LOAN: Any Mortgage Loan with respect to which the related
lender rather than the related borrower acquired primary mortgage guaranty
insurance and charged the related borrower an interest premium.
LIBOR: For any Interest Accrual Period for the LIBOR Certificates, the
rate determined by the Trustee on the related LIBOR Determination Date on the
basis of the offered rate for one-month U.S. dollar deposits that appears on
Telerate Page 3750 as of 11:00 a.m. (London time) on that date. If the rate does
not appear on Telerate Page 3750, the rate for that date will be determined on
the basis of the rates at which one-month U.S. dollar deposits are offered by
the Reference Banks at approximately 11:00 a.m. (London time) on that date to
prime banks in the London interbank market. In that case, the Trustee will
request the principal London office of each of the Reference Banks to provide a
quotation of its rate. If at least two quotations are so provided, the rate for
that date will be the arithmetic mean of the quotations (rounded upwards if
necessary to the nearest whole multiple of 1/16%). If fewer than two quotations
are provided as requested, the rate for that date will be the arithmetic mean of
the rates quoted by major banks in New York City, selected by the Master
Servicer, at approximately 11:00 a.m. (New York City time) on that date for
one-month U.S. dollar loans to leading European banks.
LIBOR CERTIFICATES: As specified in the Preliminary Statement.
LIBOR DETERMINATION DATE: For any Interest Accrual Period for the LIBOR
Certificates, the second London Business Day preceding the commencement of the
Interest Accrual Period.
LIQUIDATED MORTGAGE LOAN: For any Distribution Date, a defaulted
Mortgage Loan (including any REO Property) that was liquidated in the calendar
month preceding the month of the Distribution Date and as to which the Master
Servicer has certified (in accordance with this Agreement) that it has received
all amounts it expects to receive in connection with the liquidation of the
Mortgage Loan, including the final disposition of an REO Property.
LIQUIDATION PROCEEDS: Amounts, including Insurance Proceeds regardless
of when received, received in connection with the partial or complete
liquidation of defaulted Mortgage Loans, whether through trustee's sale,
foreclosure sale, or otherwise or amounts received in connection with any
condemnation or partial release of a Mortgaged Property, and any other proceeds
received in connection with an REO Property, less the SUM OF related
unreimbursed Master Servicing Fees, Servicing Advances and Advances.
LOAN GROUP: Any of Loan Group I or Loan Group II, as applicable.
LOAN GROUP I: The Mortgage Loans identified on the Mortgage Loan
Schedule as Group I Mortgage Loans.
LOAN GROUP II: The Mortgage Loans identified on the Mortgage Loan
Schedule as Group II Mortgage Loans.
LOAN-TO-VALUE RATIO: For any Mortgage Loan and as of any date of
determination, the fraction whose numerator is the principal balance of the
related Mortgage Loan at that date of determination and whose denominator is the
Collateral Value of the related Mortgaged Property.
LONDON BUSINESS DAY: Any day on which dealings in deposits of United
States dollars are transacted in the London interbank market.
LOST MORTGAGE NOTE: Any Mortgage Note the original of which was
permanently lost or destroyed and has not been replaced.
MAJORITY IN INTEREST: As to any Class of Regular Certificates, the
Holders of Certificates of such Class evidencing, in the aggregate, at least 51%
of the Percentage Interests evidenced by all Certificates of such Class.
MARGIN: As to each adjustable-rate Mortgage Loan, the percentage amount
on the related Mortgage Note added to the Index in calculating its Mortgage
Rate.
MARKER RATE: With respect to the Class C Certificates and any
Distribution Date, a per annum rate equal to two (2) times the weighted average
of the REMIC III Remittance Rates for each REMIC III Regular Interest (other
than REMIC III Regular Interest LTAA, LT1SUB, LT1GRP, LT2SUB, LT2GRP, LTXX, LTIO
and LTP) subject to a cap (for each such REMIC III Regular Interest other than
REMIC III Regular Interest LTZZ) equal to the REMIC III Remittance Rate for the
REMIC III Regular Interest the ownership of which is represented by the
Corresponding Certificate for the purpose of this calculation; with the rate on
REMIC III Regular Interest LTZZ subject to a cap of zero for the purpose of this
calculation; provided, however, that solely for this purpose, calculations of
the REMIC III Remittance Rate and the related caps with respect to each such
REMIC III Regular Interest, other than REMIC III Regular Interest LTZZ, shall be
multiplied by a fraction, the numerator of which is the actual number of days in
the Interest Accrual Period and the denominator of which is 30.
MASTER SERVICER: IndyMac Bank, F.S.B., a federal savings bank, and its
successors and assigns, in its capacity as master servicer under this Agreement.
MASTER SERVICER ADVANCE DATE: As to any Distribution Date, 12:30 p.m.
(Pacific time) on the Business Day preceding the Distribution Date.
MASTER SERVICING FEE: As to each Mortgage Loan and any Distribution
Date, one month's interest at the related Master Servicing Fee Rate on the
Stated Principal Balance of the Mortgage Loan as of the Due Date in the prior
calendar month or, in the event of any payment of interest that accompanies a
Principal Prepayment in Full made by the Mortgagor, interest at the Master
Servicing Fee Rate on the Stated Principal Balance of the Mortgage Loan for the
period covered by the payment of interest, subject to reduction as provided in
Section 3.15.
MASTER SERVICING FEE RATE: For each Mortgage Loan, 0.0035% perr annum.
MAXIMUM LTZZ UNCERTIFICATED INTEREST DEFERRAL AMOUNT: With respect to
any Distribution Date, the EXCESS OF (i) accrued interest at the REMIC III
Remittance Rate applicable to REMIC III Regular Interest LTZZ for such
Distribution Date on a balance equal to the Uncertificated Balance of REMIC III
Regular Interest LTZZ MINUS the REMIC III Overcollateralization Amount, in each
case for such Distribution Date, OVER (ii) Uncertificated Interest on REMIC III
Regular Interest LTAI1, REMIC III Regular Interest LTAII1, REMIC III Regular
Interest LTAII2, REMIC III Regular Interest LTAII3, REMIC III Regular Interest
LTM1, REMIC III Regular Interest LTM2, REMIC III Regular Interest LTM3, REMIC
III Regular Interest LTM4, REMIC III Regular Interest LTM5, REMIC III Regular
Interest LTM6, REMIC III Regular Interest LTM7, REMIC III Regular Interest LTM8,
REMIC III Regular Interest LTM9, REMIC III Regular Interest LTM10 and REMIC III
Regular Interest LTM11 for such Distribution Date, with the rate on each such
REMIC III Regular Interest subject to a cap equal to the LESSER OF (i) LIBOR
PLUS the related Pass-Through Margin and (ii) the related Net WAC Cap; provided,
however, that solely for this purpose, calculations of the REMIC III Remittance
Rate and the related caps with respect to REMIC III Regular Interest LTAI1,
REMIC III Regular Interest LTAII1 REMIC III Regular Interest LTAII2, REMIC III
Regular Interest LTAII3, REMIC III Regular Interest LTM1, REMIC III Regular
Interest LTM2, REMIC III Regular Interest LTM3, REMIC III Regular Interest LTM4,
REMIC III Regular Interest LTM5, REMIC III Regular Interest LTM6, REMIC III
Regular Interest LTM7, REMIC III Regular Interest LTM8, REMIC III Regular
Interest LTM9, REMIC III Regular Interest LTM10 and REMIC III Regular Interest
LTM11 shall be multiplied by a fraction, the numerator of which is the actual
number of days in the Interest Accrual Period and the denominator of which is
30.
MAXIMUM CAP: Any of the Group I Maximum Cap, the Group II Maximum Cap
or the Subordinated Maximum Cap, as the context requires.
MAXIMUM MORTGAGE RATE: As to each adjustable-rate Mortgage Loan, the
percentage set forth in the related Mortgage Note as the lifetime maximum
mortgage rate to which such Mortgage Rate may be adjusted. As to each fixed-rate
Mortgage Loan, the related Mortgage Rate.
MERS: Mortgage Electronic Registration Systems, Inc., a corporation
organized and existing under the laws of the State of Delaware, or any successor
thereto.
MERS MORTGAGE LOAN: Any Mortgage Loan registered with MERS on the
MERS(R) System.
MERS(R) SYSTEM: The system of recording transfers of mortgages
electronically that is maintained by MERS.
MIN: The mortgage identification number for any MERS Mortgage Loan.
MOM LOAN: Any Mortgage Loan as to which MERS is acting as mortgagee,
solely as nominee for the originator of such Mortgage Loan and its successors
and assigns.
MONTHLY STATEMENT: The statement prepared by the Trustee pursuant to
Section 4.03.
MOODY'S: Xxxxx'x Investors Service, Inc., or its successors in
interest. If Xxxxx'x is designated as a Rating Agency in the Preliminary
Statement, for purposes of Section 10.05(b) the address for notices to Moody's
shall be Xxxxx'x Investors Service, Inc., 00 Xxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx
00000, Attention: Residential Loan Monitoring Group, or any other address that
Moody's furnishes to the Depositor and the Master Servicer.
MORTGAGE: The mortgage, deed of trust, or other instrument creating a
first lien on an estate in fee simple or leasehold interest in real property
securing a Mortgage Note.
MORTGAGE FILE: The mortgage documents listed in Section 2.01 pertaining
to a particular Mortgage Loan and any additional documents delivered to the
Trustee to be added to the Mortgage File pursuant to this Agreement.
MORTGAGE LOANS: Such of the Closing Date Mortgage Loans and Subsequent
Mortgage Loans transferred and assigned to the Trustee pursuant to this
Agreement, as from time to time are held as a part of the Trust Fund (including
any REO Property), the Mortgage Loans so held being identified on the Mortgage
Loan Schedule, notwithstanding foreclosure or other acquisition of title of the
related Mortgaged Property.
MORTGAGE LOAN SCHEDULE: As of any date, the list of Mortgage Loans in
Schedule I (as supplemented by each schedule of Subsequent Mortgage Loans)
included in the Trust Fund on such date. The Mortgage Loan Schedule shall be
prepared by the Seller and shall contain the following information with respect
to each Mortgage Loan by Loan Group and in the aggregate:
(i) the loan number;
(ii) the Mortgagor's name and the street address of the
Mortgaged Property, including the zip code;
(iii) the maturity date;
(iv) the original principal balance;
(v) the Cut-off Date Principal Balance or Subsequent
Cut-off Date Principal Balance, as applicable;
(vi) the first payment date of the Mortgage Loan;
(vii) the Scheduled Payment in effect as of the applicable
Cut-off Date;
(viii) the Loan-to-Value Ratio at origination;
(ix) a code indicating whether the residential dwelling at
the time of origination was represented to be
owner-occupied;
(x) a code indicating whether the residential dwelling is
either (a) a detached single family dwelling, (b) a
townhouse, (c) a dwelling in a PUD, (d) a condominium
unit or (e) a two- to four-unit residential property;
(xi) the Mortgage Rate in effect immediately following:
(a) the applicable date of origination; and (b) the
applicable Cut-off Date;
(xii) the purpose for the Mortgage Loan;
(xiii) the type of documentation program pursuant to which
the Mortgage Loan was originated;
(xiv) with respect to the adjustable-rate Mortgage Loans:
(a) the Maximum Mortgage Rate;
(b) the Periodic Rate Cap;
(c) the Adjustment Date;
(d) the Margin; and
(e) the Index;
(xv) a code indicating whether the Mortgage Loan is a
Performance Loan;
(xvi) a code indicating whether the Mortgage Loan is a
borrower-paid mortgage insurance loan;
(xvii) [RESERVED];
(xviii) a code indicating whether the Mortgage Loan is a
Lender PMI Loan;
(xix) the coverage amount of any mortgage insurance;
(xx) with respect to the Lender PMI Loans, the related
interest premium;
(xxi) a code indicating whether the Mortgage Loan is a
Delayed Delivery Mortgage Loan;
(xxii) a code indicating whether the Mortgage Loan is a MERS
Mortgage Loan; and
(xxiii) A code indicating the term, if any, of a Prepayment
Charge.
The schedule shall also state the total of the amounts described under (v) above
for all of the Mortgage Loans in each Loan Group and in the aggregate.
MORTGAGE NOTE: The original executed note or other evidence of the
indebtedness of a Mortgagor under a Mortgage Loan.
MORTGAGE RATE: The annual rate of interest borne by a Mortgage Note
from time to time MINUS any interest premium if the applicable Mortgage Note
relates to a Lender PMI Loan, if any.
MORTGAGED PROPERTY: The underlying property securing a Mortgage Loan.
MORTGAGOR: The obligors on a Mortgage Note.
NET PREPAYMENT INTEREST SHORTFALL: For any Distribution Date and Loan
Group, the EXCESS OF the Prepayment Interest Shortfalls for such Loan Group for
such Distribution Date OVER the SUM OF (i) the Compensating Interest for such
Loan Group and Distribution Date and (ii) the EXCESS OF the Compensating
Interest for the other Loan Group over the Prepayment Interest Shortfalls for
such other Loan Group.
NET SWAP PAYMENT: With respect to each Distribution Date, the net
payment required to be made pursuant to the terms of the Swap Agreement by
either the Swap Provider or the Supplemental Interest Trust, which net payment
shall not take into account any Swap Termination Payment.
NET WAC CAP: Any of the Group I Net WAC Cap, the Group II Net WAC Cap
or the Subordinated Net WAC Cap, as the context requires.
NET WAC CAP CARRY FORWARD AMOUNT: For any Class of Certificates and any
Distribution Date, an amount equal to the aggregate amount of Net WAC Shortfall
for such Class on that Distribution Date (to the extent not covered by payments
from the Excess Reserve Fund Account or the Supplemental Interest Trust) PLUS
any unpaid Net WAC Shortfall for such Class from prior Distribution Dates (and
interest accrued thereon at the then applicable Pass-Through Rate on that Class
of Certificates, without giving effect to the applicable Net WAC Cap).
NET WAC CAP PAYMENT: For any Distribution Date, any Net WAC Cap Carry
Forward Amount for that Distribution Date MINUS the amount of payments received
under the Cap Contract and applied to the payment of the Net WAC Cap Carry
Forward Amount for that Distribution Date.
NET WAC SHORTFALL: For any Class of Class A and Subordinated
Certificates and any Distribution Date on which the Pass-Through Rate for that
Class is the related Net WAC Cap, an amount equal to excess of (x) the amount of
interest such Class of Certificates would have accrued for such Distribution
Date had such Pass-Through Rate not been limited by the related Net WAC Cap over
(y) the amount of interest such Class of Certificates accrued for such
Distribution Date at the related Net WAC Cap.
NIM INSURER: Any insurer guarantying at the request of the Seller
certain payments under the NIM Notes.
NIM NOTES: Net interest margin securities, if any, which are secured by
the cash flow on the Class C and/or Class P Certificates.
NONRECOVERABLE ADVANCE: Any portion of an Advance previously made or
proposed to be made by the Master Servicer, that, in the good faith judgment of
the Master Servicer, will not be ultimately recoverable by the Master Servicer
from the related Mortgagor or related Liquidation Proceeds or otherwise from
collections related to the Mortgage Loan.
NOTICE OF FINAL DISTRIBUTION: The notice to be provided pursuant to
Section 9.02, to the effect that final distribution on any of the Certificates
shall be made only on its presentation and surrender.
NOTIONAL AMOUNT: With respect to the Class C Certificates and any
Distribution Date, the aggregate Uncertificated Balance of the REMIC III Regular
Interests (other than REMIC III Regular Interest LTP) immediately prior to
Distribution Date.
OFFERED CERTIFICATES: As specified in the Preliminary Statement.
OFFICER'S CERTIFICATE: A certificate (i) signed by the Chairman of the
Board, the Vice Chairman of the Board, the President, a Managing Director, a
Vice President (however denominated), an Assistant Vice President, the
Treasurer, the Secretary, or one of the Assistant Treasurers or Assistant
Secretaries of the Depositor or the Master Servicer, or (ii) if provided for in
this Agreement, signed by a Servicing Officer, as the case may be, and delivered
to the Depositor and the Trustee as required by this Agreement.
OPINION OF COUNSEL: For the interpretation or application of the REMIC
Provisions, counsel must (i) in fact be independent of the Depositor and the
Master Servicer, (ii) not have any direct financial interest in the Depositor or
the Master Servicer or in any affiliate of either, and (iii) not be connected
with the Depositor or the Master Servicer as an officer, employee, promoter,
underwriter, trustee, partner, director, or person performing similar functions.
Otherwise, Opinion of Counsel is a written opinion of counsel, who may be
counsel for the Depositor or the Master Servicer, including in-house counsel,
reasonably acceptable to the Trustee.
OPTIONAL TERMINATION: The termination of the Trust Fund created
hereunder in connection with the purchase of the Mortgage Loans pursuant to
Section 9.01(a).
OPTIONAL TERMINATION DATE: The Distribution Date following the last day
of the related Remittance Period on which the aggregate Stated Principal Balance
of the Mortgage Loans and any REO Property declines to less than 10% of the sum
of (i) the aggregate Stated Principal Balance of the Closing Date Mortgage Loans
as of the Cut-off Date and (ii) the sum of aggregate Stated Principal Balances
of the Subsequent Mortgage Loans as of the related Subsequent Cut-off Dates.
ORIGINAL GROUP I PRE-FUNDED AMOUNT: The amount deposited by the
Depositor in the Group I Pre-Funding Account on the Closing Date, which amount
is $31,336,723.
ORIGINAL GROUP II PRE-FUNDED AMOUNT. The amount deposited by the
Depositor in the Group II Pre-Funding Account on the Closing Date, which amount
is $35,670,389.
ORIGINAL PRE-FUNDED AMOUNTS: The Original Group I Pre-Funded Amount and
the Original Group II Pre-Funded Amount, as applicable.
OTS: The Office of Thrift Supervision.
OUTSTANDING: For the Certificates as of any date of determination, all
Certificates theretofore executed and authenticated under this Agreement except:
(i) Certificates theretofore canceled by the Trustee or
delivered to the Trustee for cancellation; and
(ii) Certificates in exchange for which or in lieu of
which other Certificates have been executed and delivered by the
Trustee pursuant to this Agreement.
OUTSTANDING MORTGAGE LOAN: As of any Due Date, a Mortgage Loan with a
Stated Principal Balance greater than zero that was not the subject of a
Principal Prepayment in Full before the Due Date or during the Prepayment Period
related to that Due Date and that did not become a Liquidated Mortgage Loan
before the Due Date.
OVERCOLLATERALIZATION AMOUNT: For any Distribution Date, the EXCESS OF
(a) the aggregate Stated Principal Balance of the Mortgage Loans
as of the preceding Due Date plus any amounts on deposit in the Pre-Funding
Accounts (exclusive of any investment income therein) OVER
(b) the aggregate Class Certificate Balance of the Class A,
Subordinated and Class P Certificates as of that date (assuming the payment of
100% of the Principal Remittance Amount on those Certificates on that
Distribution Date).
OVERCOLLATERALIZATION DEFICIENCY: For any Distribution Date, the EXCESS
of (a) the Overcollateralization Target Amount applicable to such Distribution
Date OVER (b) the Overcollateralization Amount applicable to such Distribution
Date.
OVERCOLLATERALIZATION TARGET AMOUNT: With respect to any Distribution
Date: (i) before the Stepdown Date, an amount equal to 1.90% of the sum of the
Cut-off Date Principal Balance of the Closing Date Mortgage Loans plus the
Original Pre-Funded Amounts; (ii) on or after the Stepdown Date and provided
that a Trigger Event is not in effect, an amount equal to the GREATER OF (x)
3.80% of the then current aggregate outstanding Stated Principal Balance of the
Mortgage Loans as of the last day of the related Remittance Period (after giving
effect to Scheduled Payments of principal due during the related Remittance
Period to the extent received or advanced and Principal Prepayments received
during the Prepayment Period related to such Distribution Date) and (y)
$3,500,000; or (iii) if a Trigger Event is in effect, the Overcollateralization
Target Amount for the immediately preceding Distribution Date.
OWNERSHIP INTEREST: As to any Residual Certificate, any ownership
interest in the Certificate, including any interest in the Certificate as its
Holder and any other interest therein, whether direct or indirect, legal or
beneficial.
PASS-THROUGH MARGIN: For the Interest Accrual Period for each
Distribution Date on or before the Optional Termination Date and: the Class
A-I-1 Certificates, 0.260%; the Class A-II-1 Certificates, 0.110%; the Class
A-II-2 Certificates, 0.270%; the Class A-II-3 Certificates, 0.370%; the Class
M-1 Certificates, 0.480%; the Class M-2 Certificates, 0.500%; the Class M-3
Certificates, 0.520%; the Class M-4 Certificates, 0.610%; the Class M-5
Certificates, 0.650%; the Class M-6 Certificates, 0.720%; the Class M-7
Certificates, 1.200%; the Class M-8 Certificates, 1.350%; the Class M-9
Certificates, 1.750%; the Class M-10 Certificates, 3.000%; and the Class M-11
Certificates, 2.500%. For the Interest Accrual Period for each Distribution Date
after the Optional Termination Date, the Pass-Through Margin for each of the
Class A-I-1, Class A-II-1, Class A-II-2 and Class A-II-3 Certificates shall be 2
times its initial margin and the Pass-Through Margin for each Class of
Subordinated Certificates shall be 1.5 times its initial margin.
PASS-THROUGH RATE: With respect to any Class of Class A Certificates or
Subordinated Certificates and any Distribution Date, the LEAST OF (x) LIBOR plus
the related Pass-Through Margin for such Distribution Date, (y) the related Net
WAC Cap for such Distribution Date and (z) the related Maximum Cap for such
Distribution Date.
With respect to the Class C Certificates and any Distribution 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 (A) through
(R) below, and the denominator of which is the aggregate Uncertificated Balance
of REMIC III Regular Interest LTAA, REMIC III Regular Interest LTAI1, REMIC III
Regular Interest LTAII1, REMIC III Regular Interest LTAII2, REMIC III Regular
Interest LTAII3, REMIC III Regular Interest LTM1, REMIC III Regular Interest
LTM2, REMIC III Regular Interest LTM3, REMIC III Regular Interest LTM4, REMIC
III Regular Interest LTM5, REMIC III Regular Interest LTM6, REMIC III Regular
Interest LTM7, REMIC III Regular Interest LTM8, REMIC III Regular Interest LTM9,
REMIC III Regular Interest LTM10, REMIC III Regular Interest LTM11 and REMIC III
Regular Interest LTZZ. For purposes of calculating the Pass-Through Rate for the
Class C Certificates, the numerator is equal to the sum of the following
components:
(A) the REMIC III Remittance Rate for REMIC III Regular Interest
LTAA MINUS the Marker Rate, applied to an amount equal to the Uncertificated
Balance of REMIC III Regular Interest LTAA;
(B) the REMIC III Remittance Rate for REMIC III Regular Interest
LTAI1 MINUS the Marker Rate, applied to an amount equal to the Uncertificated
Balance of REMIC III Regular Interest LTAI1;
(C) the REMIC III Remittance Rate for REMIC III Regular Interest
LTAII1 MINUS the Marker Rate, applied to an amount equal to the Uncertificated
Balance of REMIC III Regular Interest LTAII1;
(D) the REMIC III Remittance Rate for REMIC III Regular Interest
LTAII2 MINUS the Marker Rate, applied to an amount equal to the Uncertificated
Balance of REMIC III Regular Interest LTAII2;
(E) the REMIC III Remittance Rate for REMIC III Regular Interest
LTAII3 MINUS the Marker Rate, applied to an amount equal to the Uncertificated
Balance of REMIC III Regular Interest LTAII3;
(F) the REMIC III Remittance Rate for REMIC III Regular Interest
LTM1 MINUS the Marker Rate, applied to an amount equal to the Uncertificated
Balance of REMIC III Regular Interest LTM1;
(G) the REMIC III Remittance Rate for REMIC III Regular Interest
LTM2 MINUS the Marker Rate, applied to an amount equal to the Uncertificated
Balance of REMIC III Regular Interest LTM2;
(H) the REMIC III Remittance Rate for REMIC III Regular Interest
LTM3 MINUS the Marker Rate, applied to an amount equal to the Uncertificated
Balance of REMIC III Regular Interest LTM3;
(I) the REMIC III Remittance Rate for REMIC III Regular Interest
LTM4 MINUS the Marker Rate, applied to an amount equal to the Uncertificated
Balance of REMIC III Regular Interest LTM4;
(J) the REMIC III Remittance Rate for REMIC III Regular Interest
LTM5 MINUS the Marker Rate, applied to an amount equal to the Uncertificated
Balance of REMIC III Regular Interest LTM5;
(K) the REMIC III Remittance Rate for REMIC III Regular Interest
LTM6 MINUS the Marker Rate, applied to an amount equal to the Uncertificated
Balance of REMIC III Regular Interest LTM6;
(L) the REMIC III Remittance Rate for REMIC III Regular Interest
LTM7 MINUS the Marker Rate, applied to an amount equal to the Uncertificated
Balance of REMIC III Regular Interest LTM7;
(M) the REMIC III Remittance Rate for REMIC III Regular Interest
LTM8 MINUS the Marker Rate, applied to an amount equal to the Uncertificated
Balance of REMIC III Regular Interest LTM8;
(N) the REMIC III Remittance Rate for REMIC III Regular Interest
LTM9 MINUS the Marker Rate, applied to an amount equal to the Uncertificated
Balance of REMIC III Regular Interest LTM9;
(O) the REMIC III Remittance Rate for REMIC III Regular Interest
LTM10 MINUS the Marker Rate, applied to an amount equal to the Uncertificated
Balance of REMIC III Regular Interest LTM10;
(P) the REMIC III Remittance Rate for REMIC III Regular Interest
LTM11 MINUS the Marker Rate, applied to an amount equal to the Uncertificated
Balance of REMIC III Regular Interest LTM11;
(Q) the REMIC III Remittance Rate for REMIC III Regular Interest
LTZZ MINUS the Marker Rate, applied to an amount equal to the Uncertificated
Balance of REMIC III Regular Interest LTZZ; and
(R) 100% of the interest on REMIC III Regular Interest LTP.
The Class P Certificates and Class R Certificates will not accrue
interest and therefore will not have a Pass-Through Rate.
PERCENTAGE INTEREST: As to any Certificate, the percentage interest
evidenced thereby in distributions required to be made on the related Class,
such percentage interest being stated on its face or equal to the percentage
obtained by dividing the Denomination of the Certificate by the aggregate of the
Denominations of all Certificates of the same Class.
PERFORMANCE LOAN: Adjustable-rate Mortgage Loans that provide borrowers
the potential of margin reduction for good payment history. If, at the time of
evaluation, the related borrower has made scheduled payments in full since the
origination of the loan with a maximum of one late payment (which, however,
cannot be in the month of evaluation), the Mortgage Loan is eligible for a
reduction (ranging from 0.50% to 1.00%) in the margin used to calculate the
Mortgage Rate.
PERIODIC RATE CAP: As to any adjustable-rate Mortgage Loan and any
Adjustment Date, the maximum percentage increase or decrease to the related
Mortgage Rate on the Adjustment Date, as specified in the related Mortgage Note.
PERMITTED INVESTMENTS: At any time, any of the following:
(i) obligations of the United States or any agency thereof backed
by the full faith and credit of the United States;
(ii) general obligations of or obligations guaranteed by any state
of the United States or the District of Columbia receiving the highest long-term
debt rating of each Rating Agency, or any lower rating that will not result in
the downgrading or withdrawal of the ratings then assigned to the Certificates
by the Rating Agencies, as evidenced by a signed writing delivered by each
Rating Agency;
(iii) commercial or finance company paper that is then receiving the
highest commercial or finance company paper rating of each Rating Agency, or any
lower rating that will not result in the downgrading or withdrawal of the
ratings then assigned to the Certificates by the Rating Agencies, as evidenced
by a signed writing delivered by each Rating Agency;
(iv) certificates of deposit, demand or time deposits, or bankers'
acceptances issued by any depository institution or trust company incorporated
under the laws of the United States or of any state thereof and subject to
supervision and examination by federal or state banking authorities; provided,
that the commercial paper or long-term unsecured debt obligations of the
depository institution or trust company (or in the case of the principal
depository institution in a holding company system, the commercial paper or
long-term unsecured debt obligations of the holding company, but only if Xxxxx'x
is not a Rating Agency) are then rated one of the two highest long-term and the
highest short-term ratings of each Rating Agency for the securities, or any
lower rating that will not result in the downgrading or withdrawal of the
ratings then assigned to the Certificates by the Rating Agencies, as evidenced
by a signed writing delivered by each Rating Agency;
(v) demand or time deposits or certificates of deposit issued by
any bank or trust company or savings institution to the extent that the deposits
are fully insured by the FDIC;
(vi) guaranteed reinvestment agreements issued by any bank,
insurance company, or other corporation acceptable to the Rating Agencies at the
time of the issuance of the agreements, as evidenced by a signed writing
delivered by each Rating Agency;
(vii) repurchase obligations with respect to any security described
in clauses (i) and (ii) above, in either case entered into with a depository
institution or trust company (acting as principal) described in clause (iv)
above; provided, that such repurchase obligation would be accounted for as a
financing arrangement under generally accepted accounting principles;
(viii) securities (other than stripped bonds, stripped coupons, or
instruments sold at a purchase price in excess of 115% of their face amount)
bearing interest or sold at a discount, issued by any corporation incorporated
under the laws of the United States or any state thereof, that, at the time of
the investment, have one of the two highest ratings of each Rating Agency
(except that if the Rating Agency is Moody's, the rating shall be the highest
commercial paper rating of Moody's for the securities), or any lower rating that
will not result in the downgrading or withdrawal of the ratings then assigned to
the Certificates by the Rating Agencies, as evidenced by a signed writing
delivered by each Rating Agency;
(ix) units of a taxable money-market portfolio having the highest
rating assigned by each Rating Agency and restricted to obligations issued or
guaranteed by the United States of America or entities whose obligations are
backed by the full faith and credit of the United States of America and
repurchase agreements collateralized by such obligations; and
(x) any other investments bearing interest or sold at a discount
acceptable to the Rating Agencies that will not result in the downgrading or
withdrawal of the ratings then assigned to the Certificates by the Rating
Agencies, as evidenced by a signed writing delivered by each Rating Agency.
No Permitted Investment may (i) evidence the right to receive interest only
payments with respect to the obligations underlying the instrument, (ii) be sold
or disposed of before its maturity or (iii) be any obligation of the Seller or
any of its Affiliates. Any Permitted Investment shall be relatively risk free
and no options or voting rights shall be exercised with respect to any Permitted
Investment. Any Permitted Investment shall be sold or disposed of in accordance
with Statement of Financial Accounting Standards No. 140, paragraph 35c(6), in
effect as of the Closing Date.
PERMITTED TRANSFEREE: Any Person other than:
(i) the United States, any State or political subdivision thereof,
or any agency or instrumentality of any of the foregoing;
(ii) a foreign government, International Organization, or any
agency or instrumentality of either of the foregoing;
(iii) an organization (except certain farmers' cooperatives
described in Section 521 of the Code) that is exempt from tax imposed by Chapter
1 of the Code (including the tax imposed by Section 511 of the Code on unrelated
business taxable income) on any excess inclusions (as defined in Section
860E(c)(1) of the Code) with respect to any Residual Certificate;
(iv) rural electric and telephone cooperatives described in Section
1381(a)(2)(C) of the Code;
(v) an "electing large partnership" as defined in Section 775 of
the Code;
(vi) a Person that is not a U.S. Person; and
(vii) any other Person so designated by the Depositor based on an
Opinion of Counsel that the Transfer of an Ownership Interest in a Residual
Certificate to the Person may cause any REMIC created under this Agreement to
fail to qualify as a REMIC at any time that the Certificates are outstanding.
The terms "UNITED STATES," "STATE," and "INTERNATIONAL ORGANIZATION"
have the meanings in Section 7701 of the Code or successor provisions. A
corporation will not be treated as an instrumentality of the United States or of
any State or political subdivision thereof for these purposes if all of its
activities are subject to tax and, with the exception of the FHLMC, a majority
of its board of directors is not selected by such government unit.
PERSON: Any individual, corporation, partnership, joint venture,
association, limited liability company, joint-stock company, trust,
unincorporated organization or government, or any agency or political
subdivision thereof.
POOL STATED PRINCIPAL BALANCE: As to any Distribution Date, the
aggregate Stated Principal Balance of the Outstanding Mortgage Loans on the last
day of the related Remittance Period.
PRE-FUNDING ACCOUNTS: The Group I Pre-Funding Account and the Group II
Pre-Funding Account, as applicable.
PREPAYMENT CHARGE: As to a Mortgage Loan, any charge paid by a
Mortgagor in connection with certain partial prepayments and all prepayments in
full made within the related Prepayment Charge Period, the Prepayment Charges
with respect to each applicable Mortgage Loan so held by the Trust Fund being
identified in the Prepayment Charge Schedule.
PREPAYMENT CHARGE PERIOD: As to any Mortgage Loan, the period of time
during which a Prepayment Charge may be imposed.
PREPAYMENT CHARGE SCHEDULE: As of any date, the list of Prepayment
Charges included in the Trust Fund on that date (including the prepayment charge
summary attached thereto). The Prepayment Charge Schedule shall contain the
following information with respect to each Prepayment Charge:
(i) the Mortgage Loan account number;
(ii) a code indicating the type of Prepayment Charge;
(iii) the state of origination in which the related
Mortgaged Property is located;
(iv) the first date on which a monthly payment is or was
due under the related Mortgage Note;
(v) the term of the Prepayment Charge;
(vi) the original principal amount of the related Mortgage
Loan; and
(vii) the Cut-off Date Principal Balance or Subsequent
Cut-off Date Principal Balance, as applicable, of the related Mortgage
Loan.
The Prepayment Charge Schedule shall be amended from time to time by
the Master Servicer in accordance with this Agreement and a copy of the amended
schedule shall be delivered to the NIM Insurer.
PREPAYMENT INTEREST EXCESS: As to any Principal Prepayment received by
the Master Servicer on a Mortgage Loan from the first day through the fifteenth
day of any calendar month other than September 2005, all amounts paid by the
related Mortgagor in respect of interest on such Principal Prepayment. All
Prepayment Interest Excess shall be retained by the Master Servicer as
additional master servicing compensation.
PREPAYMENT INTEREST SHORTFALL: As to any Distribution Date, Mortgage
Loan and Principal Prepayment received on or after the sixteenth day of the
month preceding the month of such Distribution Date (or, in the case of the
first Distribution Date, on or after September 1, 2005) and on or before the
last day of the month preceding the month of such Distribution Date, the amount,
if any, by which one month's interest at the related Mortgage Rate, net of the
Master Servicing Fee Rate, on such Principal Prepayment exceeds the amount of
interest paid in connection with such Principal Prepayment.
PREPAYMENT PERIOD: As to any Distribution Date and related Due Date,
the period from and including the 16th day of the month immediately prior to the
month of such Distribution Date (or, in the case of the first Distribution Date,
on September 1, 2005) to and including the 15th day of the month of such
Distribution Date.
PRIMARY INSURANCE POLICY: Each policy of primary mortgage guaranty
insurance or any replacement policy therefor with respect to any Mortgage Loan.
PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, the SUM OF
(i) the Basic Principal Distribution Amount for the Distribution Date and (ii)
the Extra Principal Distribution Amount for the Distribution Date.
PRINCIPAL PREPAYMENT: Any payment of principal by a Mortgagor on a
Mortgage Loan (including the Purchase Price of any modified Mortgage Loan
purchased pursuant to Section 3.12(c)) that is received in advance of its
scheduled Due Date and is not accompanied by an amount representing scheduled
interest due on any date in any month after the month of prepayment. The Master
Servicer shall apply partial Principal Prepayments in accordance with the
related Mortgage Note.
PRINCIPAL PREPAYMENT IN FULL: Any Principal Prepayment made by a
Mortgagor of the entire principal balance of a Mortgage Loan.
PRINCIPAL REMITTANCE AMOUNT: For any Distribution Date and Loan Group,
the SUM OF the following amounts (without duplication) with respect to the
Mortgage Loans in such Loan Group:
(i) the principal portion of previously undistributed Scheduled
Payments due after the Cut-off Date and by the Due Date occurring in the related
Remittance Period that were not the subject of a previous Advance and were
received by the Master Servicer before the related Determination Date or were
part of the Advance for the Determination Date;
(ii) each Principal Prepayment received by the Master Servicer
during the related Prepayment Period;
(iii) the Liquidation Proceeds on the Mortgage Loans allocable to
principal and Subsequent Recoveries actually collected by the Master Servicer
during the preceding calendar month;
(iv) the principal portion of the purchase price with respect to
each Deleted Mortgage Loan, the repurchase obligation for which arose during the
preceding calendar month and that was repurchased before the related
Distribution Account Deposit Date;
(v) the principal portion of any Substitution Adjustment Amounts
in connection with a substitution of a Mortgage Loan as of the Distribution
Date; and
(vi) the proceeds received with respect to the termination of the
Trust Fund (to the extent such proceeds relate to principal);
MINUS
(vii) any Net Swap Payment or Swap Termination Payment (not due to a
Swap Provider Trigger Event) deposited in the Supplemental Interest Trust for
payment to the Swap Provider on such Distribution Date (to the extent not paid
from interest collections).
PRIVATE CERTIFICATES: As specified in the Preliminary Statement.
PROSPECTUS SUPPLEMENT: The Prospectus Supplement dated September 26,
2005 relating to the Offered Certificates.
PUD: Planned Unit Development.
PURCHASE PRICE: For any Mortgage Loan required to be purchased by the
Seller pursuant to Section 2.01, 2.02, 2.03 or 2.05 or purchased by the Master
Servicer pursuant to Section 3.12, the SUM OF:
(i) 100% of the unpaid principal balance of the Mortgage Loan on
the date of the purchase;
(ii) accrued interest on the Mortgage Loan at the applicable
Mortgage Rate (or at the applicable Adjusted Mortgage Rate if (x) the purchaser
is the Master Servicer or (y) if the purchaser is the Seller and the Seller is
the Master Servicer) from the date through which interest was last paid by the
Mortgagor to the Due Date in the month in which the Purchase Price is to be
distributed to Certificateholders, net of any unreimbursed Advances made by the
Master Servicer on the Mortgage Loan; and
(iii) any costs and damages incurred by the Trust Fund in connection
with any violation by the Mortgage Loan of any predatory or abusive lending law.
If the Mortgage Loan is a Mortgage Loan to be repurchased pursuant to Section
3.12, the interest component of the Purchase Price shall be computed (i) on the
basis of the applicable Adjusted Mortgage Rate before giving effect to the
related modification and (ii) from the date to which interest was last paid to
the date on which the Mortgage Loan is assigned to the Master Servicer pursuant
to Section 3.12(c).
QUALIFIED INSURER: A mortgage guaranty insurance company duly qualified
as such under the laws of the state of its principal place of business and each
state having jurisdiction over the insurer in connection with the insurance
policy issued by the insurer, duly authorized and licensed in such states to
transact a mortgage guaranty insurance business in such states and to write the
insurance provided by the insurance policy issued by it, approved as an FNMA- or
FHLMC-approved mortgage insurer or having a claims paying ability rating of at
least "AA" or an equivalent rating by a nationally recognized statistical rating
organization. Any replacement insurer with respect to a Mortgage Loan must have
at least as high a claims paying ability rating as the insurer it replaces had
on the Closing Date.
RATING AGENCY: Each of the Rating Agencies specified in the Preliminary
Statement. If any of them or a successor is no longer in existence, "RATING
AGENCY" shall be the nationally recognized statistical rating organization, or
other comparable Person, designated by the Depositor, notice of which
designation shall be given to the Trustee. References to a given rating or
rating category of a Rating Agency means the rating category without giving
effect to any modifiers.
REALIZED LOSS: The excess of the Stated Principal Balance of a
defaulted Mortgage Loan over the net Liquidation Proceeds with respect thereto
that are allocated to the principal balance of such Mortgage Loan. To the extent
the Master Servicer receives Subsequent Recoveries with respect to any Mortgage
Loan, the amount of the Realized Loss with respect to that Mortgage Loan will be
reduced by such Subsequent Recoveries.
RECORD DATE: For the Class A and Subordinated Certificates held in
book-entry form, the close of business on the Business Day before the related
Distribution Date. For any Definitive Certificate, the close of business on the
last Business Day of the month preceding the month of the related Distribution
Date.
REFERENCE BANK: As defined in Section 4.07.
REFINANCE LOAN: Any Mortgage Loan the proceeds of which are used to
refinance an existing Mortgage Loan.
REGULAR CERTIFICATES: Any Class A, Class M, Class C or Class P
Certificate.
RELIEF ACT: The Servicemembers Civil Relief Act.
RELIEF ACT INTEREST SHORTFALL: With respect to any Distribution Date
and any Mortgage Loan as to which there has been a reduction in the amount of
interest collectible thereon for the most recently ended calendar month as a
result of the application of the Relief Act or similar state laws, the amount,
if any, by which (i) interest collectible on such Mortgage Loan for the most
recently ended calendar month is less than (ii) interest accrued thereon for
such month pursuant to the Mortgage Note.
REMIC: A "real estate mortgage investment conduit" within the meaning
of Section 860D of the Code.
REMIC I: The segregated pool of assets subject hereto, constituting the
primary trust created hereby and to be administered hereunder, with respect to
which a REMIC election is to be made, consisting of: (i) such Mortgage Loans and
Prepayment Charges as from time to time are subject to this Agreement, together
with the Mortgage Files relating thereto, and together with all collections
thereon and proceeds thereof; (ii) any REO Property, together with all
collections thereon and proceeds thereof; (iii) the Trustee's rights with
respect to the Mortgage Loans under all insurance policies, required to be
maintained pursuant to this Agreement and any proceeds thereof; (iv) the
Depositor's rights under this Agreement (including any security interest created
thereby) to the extent conveyed pursuant to Section 2.01; and (v) the Collection
Account, the Distribution Account and such assets that are deposited therein
from time to time and any investments thereof, together with any and all income,
proceeds and payments with respect thereto. Notwithstanding the foregoing,
however, REMIC I specifically excludes the Pre-Funding Accounts, any Subsequent
Mortgage Loan Interest, the Excess Reserve Fund Account, the Interest Coverage
Account, the Cap Contract, the Supplemental Interest Trust, the Swap Agreement,
all payments and other collections of principal and interest due on the Mortgage
Loans on or before the Cut-off Date and all Prepayment Charges payable in
connection with Principal Prepayments made before the Cut-off Date.
REMIC I REGULAR INTEREST: Any of the separate non-certificated
beneficial ownership interests in REMIC I issued hereunder and designated as a
regular interest in REMIC I. Each REMIC I Regular Interest shall accrue interest
at the related REMIC I Remittance Rate in effect from time to time, and shall be
entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Balance as
set forth in the Preliminary Statement hereto.
REMIC I REGULAR INTEREST I-LT1: One of the separate non-certificated
beneficial ownership interests in REMIC I issued hereunder and designated as a
Regular Interest in REMIC I. REMIC I Regular Interest I-LT1 shall accrue
interest at the related REMIC I Remittance Rate in effect from time to time, and
shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.
REMIC I REGULAR INTEREST I-LT1PF: One of the separate non-certificated
beneficial ownership interests in REMIC I issued hereunder and designated as a
Regular Interest in REMIC I. REMIC I Regular Interest I-LT1PF shall accrue
interest at the related REMIC I Remittance Rate in effect from time to time, and
shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.
REMIC I REGULAR INTEREST I-LT2: One of the separate non-certificated
beneficial ownership interests in REMIC I issued hereunder and designated as a
Regular Interest in REMIC I. REMIC I Regular Interest I-LT2 shall accrue
interest at the related REMIC I Remittance Rate in effect from time to time, and
shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.
REMIC I REGULAR INTEREST I-LT2PF: One of the separate non-certificated
beneficial ownership interests in REMIC I issued hereunder and designated as a
Regular Interest in REMIC I. REMIC I Regular Interest I-LT2PF shall accrue
interest at the related REMIC I Remittance Rate in effect from time to time, and
shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.
REMIC I REGULAR INTEREST I-LTP: One of the separate non-certificated
beneficial ownership interests in REMIC I issued hereunder and designated as a
Regular Interest in REMIC I. REMIC I Regular Interest I-LTP shall be entitled to
distributions of principal, subject to the terms and conditions hereof, in an
aggregate amount equal to its initial Uncertificated Balance as set forth in the
Preliminary Statement hereto.
REMIC I REMITTANCE RATE: With respect to REMIC I Regular Interest I-LT1
and REMIC I Regular Interest I-LTP and (i) for the first Distribution Date, the
weighted average of the Adjusted Net Mortgage Rates of the Initial Group I
Mortgage Loans and (ii) thereafter, the weighted average of the Adjusted Net
Mortgage Rates of the Group I Mortgage Loans. With respect to REMIC I Regular
Interest I-LT2, and (i) for the first Distribution Date, the weighted average of
the Adjusted Net Mortgage Rates of the Initial Group II Mortgage Loans and (ii)
thereafter, the weighted average of the Adjusted Net Mortgage Rates of the Group
II Mortgage Loans. With respect to REMIC I Regular Interest I-LT1PF and (i) the
first Distribution Date, 0.000% and (ii) thereafter, the weighted average of the
Adjusted Net Mortgage Rates of the Group I Mortgage Loans. With respect to REMIC
I Regular Interest I-LT2PF and (i) the first Distribution Date, 0.000% and (ii)
thereafter, the weighted average of the Adjusted Net Mortgage Rates of the Group
II Mortgage Loans.
REMIC II GROUP I REGULAR INTERESTS: REMIC II Regular Interest I and
REMIC II Regular Interest I-1-A through REMIC II Regular Interest I-40-B as
designated in the Preliminary Statement hereto.
REMIC II GROUP II REGULAR INTERESTS: REMIC II Regular Interest II and
REMIC II Regular Interest II-1-A through REMIC II Regular Interest II-40-B as
designated in the Preliminary Statement hereto.
REMIC II REGULAR INTEREST: Any of the separate non certificated
beneficial ownership interests in REMIC II issued hereunder and designated as a
"regular interest" in REMIC II. Each REMIC II Regular Interest shall accrue
interest at the related REMIC II Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto. The designations for
the respective REMIC II Regular Interests are set forth in the Preliminary
Statement hereto. The REMIC II Regular Interests consist of the REMIC II Group I
Regular Interests, REMIC II Group II Regular Interests and REMIC II Regular
Interest X.
XXXXX XX REMITTANCE RATE: With respect to REMIC II Regular Interest I
and REMIC II Regular Interest P, a per annum rate equal to the weighted average
Net Mortgage Rate of Loan Group I. With respect to each REMIC II Group I Regular
Interest ending with the designation "A", a per annum rate equal to the weighted
average Net Mortgage Rate of Loan Group I multiplied by 2, subject to a maximum
rate of 4.300%. With respect to each REMIC II Group I Regular Interest ending
with the designation "B", the greater of (x) a per annum rate equal to the
excess, if any, of (i) 2 multiplied by the weighted average Net Mortgage Rate of
Loan Group I over (ii) 4.300% and (y) 0.00%. With respect to REMIC II Regular
Interest II, a per annum rate equal to the weighted average Net Mortgage Rate of
Loan Group II. With respect to each REMIC II Group II Regular Interest ending
with the designation "A", a per annum rate equal to the weighted average Net
Mortgage Rate of Loan Group II multiplied by 2, subject to a maximum rate of
4.300%. With respect to each REMIC II Group II Regular Interest ending with the
designation "B", the greater of (x) a per annum rate equal to the excess, if
any, of (i) 2 multiplied by the weighted average Net Mortgage Rate of Loan Group
II over (ii) 4.300% and (y) 0.00%.
REMIC III INTEREST LOSS ALLOCATION AMOUNT: With respect to any
Distribution Date, an amount (subject to adjustment based on the actual number
of days elapsed in the respective Interest Accrual Periods for the indicated
Regular Interests for such Distribution Date) equal to (a) the product of (i)
50% of the aggregate Stated Principal Balance of the Mortgage Loans and REO
Properties then outstanding and (ii) the REMIC III Remittance Rate for REMIC III
Regular Interest LTAA minus the Marker Rate, divided by (b) 12.
REMIC III MARKER ALLOCATION PERCENTAGE: 50% of any amount payable or
loss attributable from the Mortgage Loans, which shall be allocated to REMIC III
Regular Interest LTAA, REMIC III Regular Interest LTAI1, REMIC III Regular
Interest LTAII1, REMIC III Regular Interest LTAII2, REMIC III Regular Interest
LTAII3, REMIC III Regular Interest LTM1, REMIC III Regular Interest LTM2, REMIC
III Regular Interest LTM3, REMIC III Regular Interest LTM4, REMIC III Regular
Interest LTM5, REMIC III Regular Interest LTM6, REMIC III Regular Interest LTM7,
REMIC III Regular Interest LTM8, REMIC III Regular Interest LTM9, REMIC III
Regular Interest LTM10, REMIC III Regular Interest LTM11, REMIC III Regular
Interest LTZZ and REMIC III Regular Interest LTP.
REMIC III OVERCOLLATERALIZATION TARGET AMOUNT: 0.50% of the
Overcollateralization Target Amount.
REMIC III OVERCOLLATERALIZED AMOUNT: With respect to any date of
determination, (i) 0.50% of the aggregate Uncertificated Balance of the REMIC
III Regular Interests MINUS (ii) the aggregate Uncertificated Balance of REMIC
III Regular Interest LTAI1, REMIC III Regular Interest LTAII1, REMIC III Regular
Interest LTAII2, REMIC III Regular Interest LTAII3, REMIC III Regular Interest
LTM1, REMIC III Regular Interest LTM2, REMIC III Regular Interest LTM3, REMIC
III Regular Interest LTM4, REMIC III Regular Interest LTM5, REMIC III Regular
Interest LTM6, REMIC III Regular Interest LTM7, REMIC III Regular Interest LTM8,
REMIC III Regular Interest LTM9, REMIC III Regular Interest LTM10, REMIC III
Regular Interest LTM11 and REMIC III Regular Interest LTP, in each case as of
such date of determination.
REMIC III PRINCIPAL LOSS ALLOCATION AMOUNT: With respect to any
Distribution Date, an amount equal to the product of (i) 50% of the aggregate
Stated Principal Balance of the Mortgage Loans and REO Properties then
outstanding and (ii) one (1) minus a fraction, the numerator of which is two (2)
times the aggregate Uncertificated Balance of REMIC III Regular Interest LTAI1,
REMIC III Regular Interest LTAII1, REMIC III Regular Interest LTAII2, REMIC III
Regular Interest LTAII3, REMIC III Regular Interest LTM1, REMIC III Regular
Interest LTM2, REMIC III Regular Interest LTM3, REMIC III Regular Interest LTM4,
REMIC III Regular Interest LTM5, REMIC III Regular Interest LTM6, REMIC III
Regular Interest LTM7, REMIC III Regular Interest LTM8, REMIC III Regular
Interest LTM9, REMIC III Regular Interest LTM10 and REMIC III Regular Interest
LTM11 and the denominator of which is the aggregate Uncertificated Balance of
REMIC III Regular Interest LTAI1, REMIC III Regular Interest LTAII1, REMIC III
Regular Interest LTAII2, REMIC III Regular Interest LTAII3, REMIC III Regular
Interest LTM1, REMIC III Regular Interest LTM2, REMIC III Regular Interest LTM3,
REMIC III Regular Interest LTM4, REMIC III Regular Interest LTM5, REMIC III
Regular Interest LTM6, REMIC III Regular Interest LTM7, REMIC III Regular
Interest LTM8, REMIC III Regular Interest LTM9, REMIC III Regular Interest
LTM10, REMIC III Regular Interest LTM11 and REMIC III Regular Interest LTZZ.
REMIC III REGULAR INTEREST: Any of the separate non-certificated
beneficial ownership interests in REMIC III issued hereunder and designated as a
regular interest in REMIC III. Each REMIC III Regular Interest shall accrue
interest at the related REMIC III Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal (other than the REMIC III
Regular Interest LTIO), subject to the terms and conditions hereof, in an
aggregate amount equal to its initial Uncertificated Balance as set forth in the
Preliminary Statement hereto.
REMIC III REGULAR INTEREST LT1GRP: One of the separate non-certificated
beneficial ownership interests in REMIC III issued hereunder and designated as a
Regular Interest in REMIC III. REMIC III Regular Interest LT1GRP shall accrue
interest at the related REMIC III Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.
REMIC III REGULAR INTEREST LT1SUB: One of the separate non-certificated
beneficial ownership interests in REMIC III issued hereunder and designated as a
Regular Interest in REMIC III. REMIC III Regular Interest LT1SUB shall accrue
interest at the related REMIC III Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.
REMIC III REGULAR INTEREST LT2GRP: One of the separate non-certificated
beneficial ownership interests in REMIC III issued hereunder and designated as a
Regular Interest in REMIC III. REMIC III Regular Interest LT2GRP shall accrue
interest at the related REMIC III Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.
REMIC III REGULAR INTEREST LT2SUB: One of the separate non-certificated
beneficial ownership interests in REMIC III issued hereunder and designated as a
Regular Interest in REMIC III. REMIC III Regular Interest LT2SUB shall accrue
interest at the related REMIC III Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.
REMIC III REGULAR INTEREST LTAA: One of the separate non-certificated
beneficial ownership interests in REMIC III issued hereunder and designated as a
Regular Interest in REMIC III. REMIC III Regular Interest LTAA shall accrue
interest at the related REMIC III Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.
REMIC III REGULAR INTEREST LTAI1: One of the separate non-certificated
beneficial ownership interests in REMIC III issued hereunder and designated as a
Regular Interest in REMIC III. REMIC III Regular Interest LTAI1 shall accrue
interest at the related REMIC III Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.
REMIC III REGULAR INTEREST LTAII1: One of the separate non-certificated
beneficial ownership interests in REMIC III issued hereunder and designated as a
Regular Interest in REMIC III. REMIC III Regular Interest LTAII1 shall accrue
interest at the related REMIC III Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.
REMIC III REGULAR INTEREST LTAII2: One of the separate non-certificated
beneficial ownership interests in REMIC III issued hereunder and designated as a
Regular Interest in REMIC III. REMIC III Regular Interest LTAII2 shall accrue
interest at the related REMIC III Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.
REMIC III REGULAR INTEREST LTAII3: One of the separate non-certificated
beneficial ownership interests in REMIC III issued hereunder and designated as a
Regular Interest in REMIC III. REMIC III Regular Interest LTAII3 shall accrue
interest at the related REMIC III Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.
REMIC III REGULAR INTEREST LTIO: One of the separate non-certificated
beneficial ownership interests in REMIC III issued hereunder and designated as a
Regular Interest in REMIC III. REMIC III Regular Interest LTIO shall accrue
interest at the related REMIC III Remittance Rate in effect from time to time on
its Uncertificated Notional Amount as set forth in the Preliminary Statement
hereto.
REMIC III REGULAR INTEREST LTM1: One of the separate non-certificated
beneficial ownership interests in REMIC III issued hereunder and designated as a
Regular Interest in REMIC III. REMIC III Regular Interest LTM1 shall accrue
interest at the related REMIC III Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.
REMIC III REGULAR INTEREST LTM2: One of the separate non-certificated
beneficial ownership interests in REMIC III issued hereunder and designated as a
Regular Interest in REMIC III. REMIC III Regular Interest LTM2 shall accrue
interest at the related REMIC III Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.
REMIC III REGULAR INTEREST LTM3: One of the separate non-certificated
beneficial ownership interests in REMIC III issued hereunder and designated as a
Regular Interest in REMIC III. REMIC III Regular Interest LTM3 shall accrue
interest at the related REMIC III Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.
REMIC III REGULAR INTEREST LTM4: One of the separate non-certificated
beneficial ownership interests in REMIC III issued hereunder and designated as a
Regular Interest in REMIC III. REMIC III Regular Interest LTM4 shall accrue
interest at the related REMIC III Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.
REMIC III REGULAR INTEREST LTM5: One of the separate non-certificated
beneficial ownership interests in REMIC III issued hereunder and designated as a
Regular Interest in REMIC III. REMIC III Regular Interest LTM5 shall accrue
interest at the related REMIC III Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.
REMIC III REGULAR INTEREST LTM6: One of the separate non-certificated
beneficial ownership interests in REMIC III issued hereunder and designated as a
Regular Interest in REMIC III. REMIC III Regular Interest LTM6 shall accrue
interest at the related REMIC III Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.
REMIC III REGULAR INTEREST LTM7: One of the separate non-certificated
beneficial ownership interests in REMIC III issued hereunder and designated as a
Regular Interest in REMIC III. REMIC III Regular Interest LTM7 shall accrue
interest at the related REMIC III Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.
REMIC III REGULAR INTEREST LTM8: One of the separate non-certificated
beneficial ownership interests in REMIC III issued hereunder and designated as a
Regular Interest in REMIC III. REMIC III Regular Interest LTM8 shall accrue
interest at the related REMIC III Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.
REMIC III REGULAR INTEREST LTM9: One of the separate non-certificated
beneficial ownership interests in REMIC III issued hereunder and designated as a
Regular Interest in REMIC III. REMIC III Regular Interest LTM9 shall accrue
interest at the related REMIC III Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.
REMIC III REGULAR INTEREST LTM10: One of the separate non-certificated
beneficial ownership interests in REMIC III issued hereunder and designated as a
Regular Interest in REMIC III. REMIC III Regular Interest LTM10 shall accrue
interest at the related REMIC III Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.
REMIC III REGULAR INTEREST LTM11: One of the separate non-certificated
beneficial ownership interests in REMIC III issued hereunder and designated as a
Regular Interest in REMIC III. REMIC III Regular Interest LTM11 shall accrue
interest at the related REMIC III Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.
REMIC III REGULAR INTEREST LTP: One of the separate non-certificated
beneficial ownership interests in REMIC III issued hereunder and designated as a
Regular Interest in REMIC III. REMIC III Regular Interest LTP shall be entitled
to any Prepayment Charges collected by the Master Servicer and to a distribution
of principal, subject to the terms and conditions hereof, in an aggregate amount
equal to its initial Uncertificated Balance as set forth in the Preliminary
Statement hereto.
REMIC III REGULAR INTEREST LTXX: One of the separate non-certificated
beneficial ownership interests in REMIC III issued hereunder and designated as a
Regular Interest in REMIC III. REMIC III Regular Interest LTXX shall accrue
interest at the related REMIC III Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.
REMIC III REGULAR INTEREST LTZZ: One of the separate non-certificated
beneficial ownership interests in REMIC III issued hereunder and designated as a
Regular Interest in REMIC III. REMIC III Regular Interest LTZZ shall accrue
interest at the related REMIC III Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.
REMIC III REMITTANCE RATE: With respect to REMIC III Regular Interest
LTAA, REMIC III Regular Interest LTAI1, REMIC III Regular Interest LTAII1, REMIC
III Regular Interest LTAII2, REMIC III Regular Interest LTAII3, REMIC III
Regular Interest LTM1, REMIC III Regular Interest LTM2, REMIC III Regular
Interest LTM3, REMIC III Regular Interest LTM4, REMIC III Regular Interest LTM5,
REMIC III Regular Interest LTM6, REMIC III Regular Interest LTM7, REMIC III
Regular Interest LTM8, REMIC III Regular Interest LTM9, REMIC III Regular
Interest LTM10, REMIC III Regular Interest LTM11, REMIC III Regular Interest
LTZZ, REMIC III Regular Interest LT1SUB, REMIC III Regular Interest LT2SUB and
REMIC III Regular Interest LTXX, a per annum rate (but not less than zero) equal
to the weighted average of (w) with respect to REMIC II Regular Interest I,
REMIC II Regular Interest II and REMIC II Regular Interest P, the REMIC II
Remittance Rate for such REMIC II Regular Interest for each such Distribution
Date, (x) with respect to REMIC II Regular Interests ending with the designation
"B", the weighted average of the REMIC II Remittance Rates for such REMIC II
Regular Interests, weighted on the basis of the Uncertificated Balance of such
REMIC II Regular Interests for each such Distribution Date and (y) with respect
to REMIC II Regular Interests ending with the designation "A", for each
Distribution Date listed below, the weighted average of the rates listed below
for each such REMIC II Regular Interest listed below, weighted on the basis of
the Uncertificated Balance of each such REMIC II Regular Interest for each such
Distribution Date:
DISTRIBUTION
DATE REMIC II REGULAR INTEREST RATE
---- ------------------------- ----
1 I-1-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
2 I-2-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-2-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate REMIC II
Remittance Rate
I-1-A REMIC II Remittance Rate
II-1-A REMIC II Remittance Rate
3 I-3-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-3-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A and I-2-A REMIC II Remittance Rate
II-1-A and II-2-A REMIC II Remittance Rate
4 I-4-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-4-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-3-A REMIC II Remittance Rate
II-1-A through II-3-A REMIC II Remittance Rate
5 I-5-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-5-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-4-A REMIC II Remittance Rate
II-1-A through II-4-A REMIC II Remittance Rate
6 I-6-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-6-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-5-A REMIC II Remittance Rate
II-1-A through II-5-A REMIC II Remittance Rate
7 I-7-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-7-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-6-A REMIC II Remittance Rate
II-1-A through II-6-A REMIC II Remittance Rate
8 I-8-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-8-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-7-A REMIC II Remittance Rate
II-1-A through II-7-A REMIC II Remittance Rate
9 I-9-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-9-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-8-A REMIC II Remittance Rate
II-1-A through II-8-A REMIC II Remittance Rate
10 I-10-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-10-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-9-A REMIC II Remittance Rate
II-1-A through II-9-A REMIC II Remittance Rate
11 I-11-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-11-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-10-A REMIC II Remittance Rate
II-1-A through II-10-A REMIC II Remittance Rate
12 I-12-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-12-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-11-A REMIC II Remittance Rate
II-1-A through II-11-A REMIC II Remittance Rate
13 I-13-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-13-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-12-A REMIC II Remittance Rate
II-1-A through II-12-A REMIC II Remittance Rate
14 I-14-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-14-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-13-A REMIC II Remittance Rate
II-1-A through II-13-A REMIC II Remittance Rate
15 I-15-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-15-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-14-A REMIC II Remittance Rate
II-1-A through II-14-A REMIC II Remittance Rate
16 I-16-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-16-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-15-A REMIC II Remittance Rate
II-1-A through II-15-A REMIC II Remittance Rate
17 I-17-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-17-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-16-A REMIC II Remittance Rate
II-1-A through II-16-A REMIC II Remittance Rate
18 I-18-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-18-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-17-A REMIC II Remittance Rate
II-1-A through II-17-A REMIC II Remittance Rate
19 I-19-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-19-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-18-A REMIC II Remittance Rate
II-1-A through II-18-A REMIC II Remittance Rate
20 I-20-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-20-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-19-A REMIC II Remittance Rate
II-1-A through II-19-A REMIC II Remittance Rate
21 I-21-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-21-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-20-A REMIC II Remittance Rate
II-1-A through II-20-A REMIC II Remittance Rate
22 I-22-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-22-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-21-A REMIC II Remittance Rate
II-1-A through II-21-A REMIC II Remittance Rate
23 I-23-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-23-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-22-A REMIC II Remittance Rate
II-1-A through II-22-A REMIC II Remittance Rate
24 I-24-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-24-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-23-A REMIC II Remittance Rate
II-1-A through II-23-A REMIC II Remittance Rate
25 I-25-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-25-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-24-A REMIC II Remittance Rate
II-1-A through II-24-A REMIC II Remittance Rate
26 I-26-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-26-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-25-A REMIC II Remittance Rate
II-1-A through II-25-A REMIC II Remittance Rate
27 I-27-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-27-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-26-A REMIC II Remittance Rate
II-1-A through II-26-A REMIC II Remittance Rate
28 I-28-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-28-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-27-A REMIC II Remittance Rate
II-1-A through II-27-A REMIC II Remittance Rate
29 I-29-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-29-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-28-A REMIC II Remittance Rate
II-1-A through II-28-A REMIC II Remittance Rate
30 I-30-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-30-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-29-A REMIC II Remittance Rate
II-1-A through II-29-A REMIC II Remittance Rate
31 I-31-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-31-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-30-A REMIC II Remittance Rate
II-1-A through II-30-A REMIC II Remittance Rate
32 I-32-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-32-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-31-A REMIC II Remittance Rate
II-1-A through II-31-A REMIC II Remittance Rate
33 I-33-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-33-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-32-A REMIC II Remittance Rate
II-1-A through II-32-A REMIC II Remittance Rate
34 I-34-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-34-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-33-A REMIC II Remittance Rate
II-1-A through II-33-A REMIC II Remittance Rate
35 I-35-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-35-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-34-A REMIC II Remittance Rate
II-1-A through II-34-A REMIC II Remittance Rate
36 I-36-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-36-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-35-A REMIC II Remittance Rate
II-1-A through II-35-A REMIC II Remittance Rate
37 I-37-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-37-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-36-A REMIC II Remittance Rate
II-1-A through II-36-A REMIC II Remittance Rate
38 I-38-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-38-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-37-A REMIC II Remittance Rate
II-1-A through II-37-A REMIC II Remittance Rate
39 I-39-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-39-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-38-A REMIC II Remittance Rate
II-1-A through II-38-A REMIC II Remittance Rate
40 I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-40-A REMIC II Remittance Rate
II-1-A through II-39-A REMIC II Remittance Rate
thereafter I-1-A through I-40-A REMIC II Remittance Rate
II-1-A through II-40-A REMIC II Remittance Rate
With respect to REMIC III Regular Interest LT1GRP, a per annum rate
(but not less than zero) equal to the weighted average of (w) with respect to
REMIC II Regular Interest I and REMIC II Regular Interest P, the REMIC II
Remittance Rate for such REMIC II Regular Interest for each such Distribution
Date, (x) with respect to REMIC II Group I Regular Interests ending with the
designation "B", the weighted average of the REMIC II Remittance Rates for such
REMIC II Regular Interests, weighted on the basis of the Uncertificated Balance
of each such REMIC II Regular Interest for each such Distribution Date and (y)
with respect to REMIC II Group I Regular Interests ending with the designation
"A", for each Distribution Date listed below, the weighted average of the rates
listed below for such REMIC II Regular Interests listed below, weighted on the
basis of the Uncertificated Balance of each such REMIC II Regular Interest for
each such Distribution Date:
DISTRIBUTION
DATE REMIC II REGULAR INTEREST RATE
---- ------------------------- ----
1 I-1-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
2 I-2-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A REMIC II Remittance Rate
3 I-3-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A and I-2-A REMIC II Remittance Rate
4 I-4-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-3-A REMIC II Remittance Rate
5 I-5-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-4-A REMIC II Remittance Rate
6 I-6-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-5-A REMIC II Remittance Rate
7 I-7-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-6-A REMIC II Remittance Rate
8 I-8-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-7-A REMIC II Remittance Rate
9 I-9-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-8-A REMIC II Remittance Rate
10 I-10-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-9-A REMIC II Remittance Rate
11 I-11-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-10-A REMIC II Remittance Rate
12 I-12-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-11-A REMIC II Remittance Rate
13 I-13-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-12-A REMIC II Remittance Rate
14 I-14-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-13-A REMIC II Remittance Rate
15 I-15-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-14-A REMIC II Remittance Rate
16 I-16-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-15-A REMIC II Remittance Rate
17 I-17-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-16-A REMIC II Remittance Rate
18 I-18-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-17-A REMIC II Remittance Rate
19 I-19-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-18-A REMIC II Remittance Rate
20 I-20-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-19-A REMIC II Remittance Rate
21 I-21-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-20-A REMIC II Remittance Rate
22 I-22-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-21-A REMIC II Remittance Rate
23 I-23-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-22-A REMIC II Remittance Rate
24 I-24-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-23-A REMIC II Remittance Rate
25 I-25-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-24-A REMIC II Remittance Rate
26 I-26-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-25-A REMIC II Remittance Rate
27 I-27-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-26-A REMIC II Remittance Rate
28 I-28-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-27-A REMIC II Remittance Rate
29 I-29-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-28-A REMIC II Remittance Rate
30 I-30-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-29-A REMIC II Remittance Rate
31 I-31-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-30-A REMIC II Remittance Rate
32 I-32-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-31-A REMIC II Remittance Rate
33 I-33-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-32-A REMIC II Remittance Rate
34 I-34-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-33-A REMIC II Remittance Rate
35 I-35-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-34-A REMIC II Remittance Rate
36 I-36-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-35-A REMIC II Remittance Rate
37 I-37-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-36-A REMIC II Remittance Rate
38 I-38-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-37-A REMIC II Remittance Rate
39 I-39-A through I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-38-A REMIC II Remittance Rate
40 I-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
I-1-A through I-39-A
thereafter I-1-A through I-40-A REMIC II Remittance Rate
With respect to REMIC III Regular Interest LT2GRP, a per annum rate
(but not less than zero) equal to the weighted average of (w) with respect to
REMIC II Regular Interest II, the REMIC II Remittance Rate for such REMIC II
Regular Interest for each such Distribution Date, (x) with respect to REMIC II
Group II Regular Interests ending with the designation "B", the weighted average
of the REMIC II Remittance Rates for such REMIC II Regular Interests, weighted
on the basis of the Uncertificated Balance of each such REMIC II Regular
Interest for each such Distribution Date and (y) with respect to REMIC II Group
II Regular Interests ending with the designation "A", for each Distribution Date
listed below, the weighted average of the rates listed below for such REMIC II
Regular Interests listed below, weighted on the basis of the Uncertificated
Balance of each such REMIC II Regular Interest for each such Distribution Date:
DISTRIBUTION
DATE REMIC II REGULAR INTEREST RATE
---- ------------------------- ----
1 II-1-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
2 II-2-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A REMIC II Remittance Rate
3 II-3-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A and II-2-A REMIC II Remittance Rate
4 II-4-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-3-A REMIC II Remittance Rate
5 II-5-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-4-A REMIC II Remittance Rate
6 II-6-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-5-A REMIC II Remittance Rate
7 II-7-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-6-A REMIC II Remittance Rate
8 II-8-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-7-A REMIC II Remittance Rate
9 II-9-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-8-A REMIC II Remittance Rate
10 II-10-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-9-A REMIC II Remittance Rate
11 II-11-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-10-A REMIC II Remittance Rate
12 II-12-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-11-A REMIC II Remittance Rate
13 II-13-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-12-A REMIC II Remittance Rate
14 II-14-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-13-A REMIC II Remittance Rate
15 II-15-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-14-A REMIC II Remittance Rate
16 II-16-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-15-A REMIC II Remittance Rate
17 II-17-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-16-A REMIC II Remittance Rate
18 II-18-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-17-A REMIC II Remittance Rate
19 II-19-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-18-A REMIC II Remittance Rate
20 II-20-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-19-A REMIC II Remittance Rate
21 II-21-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-20-A REMIC II Remittance Rate
22 II-22-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-21-A REMIC II Remittance Rate
23 II-23-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-22-A REMIC II Remittance Rate
24 II-24-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-23-A REMIC II Remittance Rate
25 II-25-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-24-A REMIC II Remittance Rate
26 II-26-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-25-A REMIC II Remittance Rate
27 II-27-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-26-A REMIC II Remittance Rate
28 II-28-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-27-A REMIC II Remittance Rate
29 II-29-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-28-A REMIC II Remittance Rate
30 II-30-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-29-A REMIC II Remittance Rate
31 II-31-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-30-A REMIC II Remittance Rate
32 II-32-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-31-A REMIC II Remittance Rate
33 II-33-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-32-A REMIC II Remittance Rate
34 II-34-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-33-A REMIC II Remittance Rate
35 II-35-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-34-A REMIC II Remittance Rate
36 II-36-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-35-A REMIC II Remittance Rate
37 II-37-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-36-A REMIC II Remittance Rate
38 II-38-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-37-A REMIC II Remittance Rate
39 II-39-A through II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-38-A REMIC II Remittance Rate
40 II-40-A 2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC
II Remittance Rate
II-1-A through II-39-A REMIC II Remittance Rate
thereafter II-1-A through II-40-A REMIC II Remittance Rate
With respect to REMIC III Regular Interest LTIO, the excess of (i) the
weighted average of the REMIC II Remittance Rates for REMIC II Regular Interests
ending with the designation "A", over (ii) 2 multiplied by Swap LIBOR.
REMIC III SUB WAC ALLOCATION PERCENTAGE: 50% of any amount payable from
or loss attributable to the Mortgage Loans, which shall be allocated to REMIC
III Regular Interest LT1SUB, REMIC III Regular Interest LT1GRP, REMIC III
Regular Interest LT2SUB, REMIC III Regular Interest LT2GRP and REMIC III Regular
Interest LTXX.
REMIC III SUBORDINATED BALANCE RATIO: The ratio between the
Uncertificated Balances of each REMIC III Regular Interest ending with the
designation "SUB", equal to the ratio between, with respect to each such REMIC
III Regular Interest, the excess of (x) the aggregate Stated Principal Balance
of the Mortgage Loans in the related Loan Group over (y) the current Certificate
Principal Balance of Class A Certificates in the related Loan Group.
REMIC IV REGULAR INTEREST: Any of the Class C Certificate, Class P
Certificate, Class IO Interest, and any "regular interest" in REMIC IV the
ownership of which is represented by a Class A Certificate or Class M
Certificate.
REMIC PROVISIONS: Provisions of the federal income tax law relating to
REMICs, which appear at Sections 860A through 860G of Subchapter M of Chapter 1
of the Code, and related provisions, and regulations promulgated thereunder, as
the foregoing may be in effect from time to time as well as provisions of
applicable state laws.
REMIC REGULAR INTEREST: Any REMIC I Regular Interest, REMIC II Regular
Interest or REMIC III Regular Interest, as applicable.
REMIC REMITTANCE RATE: The REMIC I Remittance Rate, the REMIC II
Remittance Rate or the REMIC III Remittance Rate, as applicable.
REMITTANCE PERIOD: For any Distribution Date, the period commencing on
the second day of the month preceding the month in which the Distribution Date
occurs and ending on the first day of the month in which the Distribution Date
occurs.
REO PROPERTY: A Mortgaged Property acquired by the Trust Fund through
foreclosure or deed-in-lieu of foreclosure in connection with a defaulted
Mortgage Loan.
REQUEST FOR RELEASE: The Request for Release submitted by the Master
Servicer to the Trustee, substantially in the form of Exhibits M and N, as
appropriate.
REQUIRED INSURANCE POLICY: For any Mortgage Loan, any insurance policy
that is required to be maintained from time to time under this Agreement.
RESIDUAL CERTIFICATES: As specified in the Preliminary Statement.
RESPONSIBLE OFFICER: When used with respect to the Trustee or the
Supplemental Interest Trust Administrator, any Vice President (however
denominated), any Assistant Vice President, any Assistant Secretary, any
Assistant Treasurer, any Trust Officer or any other officer of the Trustee or
the Supplemental Interest Trust Administrator, as applicable, customarily
performing functions similar to those performed by any of the above designated
officers who at such time shall be officers to whom, with respect to a
particular matter, the matter is referred because of the officer's knowledge of
and familiarity with the particular subject and who has direct responsibility
for the administration of this Agreement.
S&P: Standard & Poor's Ratings Services, a division of The XxXxxx-Xxxx
Companies, Inc. If S&P is designated as a Rating Agency in the Preliminary
Statement, for purposes of Section 10.05(b) the address for notices to S&P shall
be Standard & Poor's Ratings Services, a division of The XxXxxx-Xxxx Companies,
Inc., 00 Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: Mortgage
Surveillance Monitoring, or any other address that S&P furnishes to the
Depositor and the Master Servicer.
SCHEDULED PAYMENT: The scheduled monthly payment on a Mortgage Loan
allocable to principal and/or interest on the Mortgage Loan that, unless
otherwise specified herein, shall give effect to any related Debt Service
Reduction and any Deficient Valuation that affects the amount of the monthly
payment due on the Mortgage Loan.
SECURITIES ACT: The Securities Act of 1933, as amended.
SELLER: IndyMac Bank, F.S.B., a federal savings bank, and its
successors and assigns, in its capacity as seller of the Mortgage Loans to the
Depositor.
SENIOR ENHANCEMENT PERCENTAGE: For any Distribution Date, the Credit
Enhancement Percentage for the Class A Certificates.
SERVICING ACCOUNT: The separate Eligible Account or Accounts created
and maintained pursuant to Section 3.06(b).
SERVICING ADVANCES: All customary, reasonable, and necessary "out of
pocket" costs and expenses incurred in the performance by the Master Servicer of
its servicing obligations, including the cost of:
(i)
(a) the preservation, restoration, and protection of a
Mortgaged Property,
(b) expenses reimbursable to the Master Servicer pursuant
to Section 3.12 and any enforcement or judicial proceedings, including
foreclosures,
(c) the maintenance and liquidation of any REO Property,
and
(d) compliance with the obligations under Section 3.10;
and
(ii) reasonable compensation to the Master Servicer or its
affiliates for acting as broker in connection with the sale of foreclosed
Mortgaged Properties and for performing certain default management and other
similar services (including appraisal services) in connection with the servicing
of defaulted Mortgage Loans. For purposes of clause (ii), only costs and
expenses incurred in connection with the performance of activities generally
considered to be outside the scope of customary servicing or master servicing
duties shall be treated as Servicing Advances.
SERVICING OFFICER: Any officer of the Master Servicer involved in, or
responsible for, the administration and servicing of the Mortgage Loans whose
name and facsimile signature appear on a list of servicing officers furnished to
the Trustee by the Master Servicer on the Closing Date pursuant to this
Agreement, as the list may from time to time be amended.
SERVICING STANDARD: That degree of skill and care exercised by the
Master Servicer with respect to mortgage loans comparable to the Mortgage Loans
serviced by the Master Servicer for itself or others.
STARTUP DAY: The Closing Date.
STATED PRINCIPAL BALANCE: As to any Mortgage Loan and Due Date, the
unpaid principal balance of such Mortgage Loan as of such Due Date, as specified
in the amortization schedule for such Due Date (before any adjustment to such
amortization schedule by reason of any moratorium or similar waiver or grace
period) after giving effect to the sum of: (i) the payment of principal due on
such Due Date and irrespective of any delinquency in payment by the related
Mortgagor and (ii) any Liquidation Proceeds allocable to principal received in
the prior calendar month and any Principal Prepayments received through the last
day of the related Prepayment Period, in each case, with respect to such
Mortgage Loan.
STEPDOWN DATE: The earlier to occur of (a) the first Distribution Date
on which the aggregate Class Certificate Balance of the Class A Certificates is
reduced to zero, and (b) the later to occur of (i) the Distribution Date in
October 2008 and (ii) the first Distribution Date on which the Senior
Enhancement Percentage (calculated for this purpose only after taking into
account distributions of principal on the Mortgage Loans on the last day of the
related Remittance Period but before any application of Principal Distribution
Amount to the Certificates) is greater than or equal to 40.60%.
SUBORDINATED CERTIFICATES: As specified in the Preliminary Statement.
SUBORDINATED MAXIMUM CAP: For each Class of Subordinated Certificates
as of any Distribution Date, the per annum rate (subject to adjustment based on
the actual number of days elapsed in the related Interest Accrual Period) equal
to the weighted average (weighted in proportion to the results of subtracting
from the aggregate Stated Principal Balance of the Mortgage Loans of each Loan
Group, the current aggregate Class Certificate Balance of the related Class A
Certificates) of (i) the Group I Maximum Cap for that Distribution Date and (ii)
the Group II Maximum Cap for that Distribution Date.
SUBORDINATED NET WAC CAP: For each Class of Subordinated Certificates
as of any Distribution Date, the per annum rate (subject to adjustment based on
the actual number of days elapsed in the related Interest Accrual Period) equal
to the weighted average (weighted in proportion to the results of subtracting
from the aggregate Stated Principal Balance of the Mortgage Loans in each Loan
Group, the current aggregate Class Certificate Balance of the related Class A
Certificates) of (i) the Group I Net WAC Cap for that Distribution Date and (ii)
the Group II Net WAC Cap for that Distribution Date.
For federal income tax purposes, the equivalent of the foregoing shall
be expressed as the weighted average of the REMIC III Remittance Rate on REMIC
III Regular Interest II-LT1SUB (subject to a cap and a floor equal to the REMIC
III Remittance Rate on REMIC III Regular Interest LT1GRP) and REMIC III Regular
Interest LT2SUB (subject to a cap and a floor equal to the REMIC III Remittance
Rate on REMIC III Regular Interest LT2GRP), weighted on the basis of the
Uncertificated Balance of each such REMIC III Regular Interest.
SUBORDINATION REDUCTION AMOUNT: For any Distribution Date, the LESSER
OF (a) the Excess Overcollateralization Amount AND (b) the Total Monthly Excess
Spread.
SUBSEQUENT CUT-OFF DATE: As to any Subsequent Mortgage Loans, the later
of (i) the first day of the month in which the related Subsequent Transfer Date
occurs or (ii) the date of origination of such Subsequent Mortgage Loan.
SUBSEQUENT CUT-OFF DATE PRINCIPAL BALANCE: As to any Subsequent
Mortgage Loan, its Stated Principal Balance as of the close of business on the
applicable Subsequent Cut-off Date.
SUBSEQUENT MORTGAGE LOAN: A Mortgage Loan sold by the Seller to the
Depositor and the Depositor to the Trust Fund pursuant to Section 2.07, such
Mortgage Loan being identified on the Mortgage Loan Schedule attached to a
Subsequent Transfer Instrument.
SUBSEQUENT MORTGAGE LOAN INTEREST: Any amount constituting (i) a
monthly payment of interest received or advanced at the Net Mortgage Rate with
respect to a Subsequent Mortgage Loan in Loan Group I during the Remittance
Period relating to the first Distribution Date in excess of 0.000% per annum and
(ii) a monthly payment of interest received or advanced at the Net Mortgage Rate
with respect to a Subsequent Mortgage Loan in Loan Group II during the
Remittance Period relating to the first Distribution Date in excess of 0.000%
per annum. The Subsequent Mortgage Loan Interest shall be distributable to the
Class C Certificates. The Subsequent Mortgage Loan Interest shall not be an
asset of any REMIC.
SUBSEQUENT RECOVERIES: As to any Distribution Date, with respect to a
Liquidated Mortgage Loan that resulted in a Realized Loss in a prior calendar
month, unexpected amounts received by the Master Servicer (net of any related
expenses permitted to be reimbursed pursuant to Section 3.09) specifically
related to such Liquidated Mortgage Loan.
SUBSEQUENT TRANSFER DATE: With respect to each Subsequent Transfer
Instrument, the date on or before the end of the Funding Period on which the
related Subsequent Mortgage Loans are sold to the Trust Fund.
SUBSEQUENT TRANSFER INSTRUMENT: Each Subsequent Transfer Instrument,
dated as of a Subsequent Transfer Date, executed by the Trustee and the
Depositor substantially in the form attached hereto as Exhibit Q, by which
Subsequent Mortgage Loans are transferred to the Trust Fund.
SUBSERVICER: As defined in Section 3.02(a).
SUBSTITUTE MORTGAGE LOAN: A Mortgage Loan substituted by the Seller for
a Deleted Mortgage Loan that must, on the date of substitution, as confirmed in
a Request for Release, substantially in the form of Exhibit M:
(i) have a Stated Principal Balance, after deduction of the
principal portion of the Scheduled Payment due in the month of substitution, not
in excess of, and not more than 10% less than, the Stated Principal Balance of
the Deleted Mortgage Loan;
(ii) be accruing interest at a rate no lower than and not more than
1% per annum higher than, that of the Deleted Mortgage Loan;
(iii) have a Loan-to-Value Ratio no higher than that of the Deleted
Mortgage Loan;
(iv) have a Maximum Mortgage Rate not more than 1% per annum higher
than and not lower than the Maximum Mortgage Rate of the Deleted Mortgage Loan;
(v) have a Margin not more than 1% per annum higher than, and not
lower than that of the Deleted Mortgage Loan;
(vi) have the same Index and same time period between reset periods
as that of the Deleted Mortgage Loan;
(vii) have a remaining term to maturity no greater than (and not
more than one year less than that of) the Deleted Mortgage Loan;
(viii) not be a cooperative loan;
(ix) comply with each representation and warranty in Section 2.03;
and
(x) satisfy the criteria for inclusion in the applicable Loan
Group.
SUBSTITUTION ADJUSTMENT AMOUNT: As defined in Section 2.03.
SUPPLEMENTAL INTEREST TRUST: The corpus of a trust created pursuant to
Section 4.05 of this Agreement and designated as the "Supplemental Interest
Trust," consisting of the Swap Agreement, the Class IO Interest and the right to
receive payments in respect of the Class IO Distribution Amount. For the
avoidance of doubt, the Supplemental Interest Trust does not constitute a part
of the Trust Fund.
SUPPLEMENTAL INTEREST TRUST ADMINISTRATOR: Deutsche Bank National Trust
Company and its successor and, if a successor is appointed under this Agreement,
such successor.
SWAP AGREEMENT: The interest rate swap agreement, dated September 29,
2005, between the Supplemental Interest Trust Administrator, as trustee on
behalf of the Supplemental Interest Trust, and the Swap Provider, which
agreement provides for Net Swap Payments and Swap Termination Payments to be
paid, as provided therein, together with any schedules, confirmations or other
agreements relating thereto, attached hereto as Exhibit K.
SWAP LIBOR: LIBOR as determined pursuant to the Swap Agreement.
SWAP PROVIDER: The party to the Swap Agreement either (a) entitled to
receive payments from the Supplemental Interest Trust or (b) required to make
payments to the Supplemental Interest Trust, in either case pursuant to the
terms of the Swap Agreement, and any successor in interest or assign. Initially,
the Swap Provider shall be Bear Xxxxxxx Financial Products Inc.
SWAP PROVIDER TRIGGER EVENT: A Swap Provider Trigger Event shall have
occurred if any of an Event of Default (under the Swap Agreement) with respect
to which the Swap Provider is a Defaulting Party, a Termination Event (under the
Swap Agreement) with respect to which the Swap Provider is the sole Affected
Party or an Additional Termination Event (under the Swap Agreement) with respect
to which the Swap Provider is the sole Affected Party has occurred.
SWAP TERMINATION PAYMENT: Upon the designation of an "Early Termination
Date" as defined in the Swap Agreement, the payment to be made by the
Supplemental Interest Trust to the Swap Provider, or by the Swap Provider to the
Supplemental Interest Trust, as applicable, pursuant to the terms of the Swap
Agreement.
TELERATE PAGE 3750: The display page currently so designated by
Moneyline Telerate Information Services, Inc. (or on any page replacing that
page on that service for the purpose of displaying London inter-bank offered
rates of major banks).
TOTAL MONTHLY EXCESS SPREAD: For any Distribution Date, the EXCESS OF
(i) Available Funds during the related Remittance Period OVER (ii) the SUM OF
the amounts paid to the Certificates on the Distribution Date pursuant to
Sections 4.02(I)(a) and (b).
TRANSFER: Any direct or indirect transfer or sale of any Ownership
Interest in a Residual Certificate.
TRIGGER EVENT: A Trigger Event exists if with respect to any
Distribution Date on or after the Stepdown Date, (A) the QUOTIENT OF (x) the
three month rolling average of the Stated Principal Balance of 60+ Day
Delinquent Loans as of the preceding calendar month OVER (y) the aggregate
Stated Principal Balance of the Mortgage Loans, as of the last day of the
preceding calendar month, EQUALS OR EXCEEDS 38.00% of the Senior Enhancement
Percentage, or (B) a Cumulative Net Loss Trigger Event is in effect.
TRUST: The trust created under this Agreement.
TRUST FUND: The corpus of the Trust consisting of:
(i) REMIC I;
(ii) REMIC II;
(iii) REMIC III;
(iv) REMIC IV;
(v) the Pre-Funding Accounts;
(vi) the Interest Coverage Acounts;
(vii) the Cap Contract; and
(viii) the Excess Reserve Fund Account.
TRUST REMIC: Any of REMIC I, REMIC II, REMIC III or REMIC IV.
TRUSTEE: Deutsche Bank National Trust Company and its successors and,
if a successor trustee is appointed under this Agreement, such successor.
TRUSTEE FEE: As to each Mortgage Loan and any Distribution Date, one
month's interest at the related Trustee Fee Rate on the Stated Principal Balance
of the Mortgage Loan as of the Due Date occurring in the preceding calendar
month (or, whenever a payment of interest accompanies a Principal Prepayment in
Full made by the Mortgagor during the preceding calendar month, interest at the
Trustee Fee Rate on the Stated Principal Balance of the Mortgage Loan for the
period covered by the payment of interest) plus the aggregate amount on deposit
in the Pre-Funding Accounts as of the Due Date occurring in the preceding
calendar month (or, in the case of the initial Distribution Date, as of the
Closing Date).
TRUSTEE FEE RATE: For each Mortgage Loan, the per annum rate agreed
upon in writing by the Closing Date by the Trustee and the Depositor.
UNCERTIFICATED BALANCE: The amount of any REMIC Regular Interest (other
than the REMIC III Regular Interest LTIO) outstanding as of any date of
determination. As of the Closing Date, the Uncertificated Balance of each REMIC
Regular Interest (other than the REMIC III Regular Interest LTIO) shall equal
the amount set forth in the Preliminary Statement hereto as its initial
uncertificated balance. On each Distribution Date, the Uncertificated Balance of
each REMIC Regular Interest (other than the REMIC III Regular Interest LTIO)
shall be reduced by all distributions of principal made on such REMIC Regular
Interest on such Distribution Date pursuant to Section 4.08 and, if and to the
extent necessary and appropriate, shall be further reduced on such Distribution
Date by Realized Losses as provided in Section 4.08. The Uncertificated Balance
of REMIC III Regular Interest LTZZ shall be increased by interest deferrals as
provided in Section 4.08(I)(1). The Uncertificated Balance of each REMIC Regular
Interest (other than the REMIC III Regular Interest LTIO) shall never be less
than zero. With respect to the Class C Certificates as of any date of
determination, an amount equal to the excess, if any, of (A) the then aggregate
Uncertificated Principal Balance of the REMIC III Regular Interests over (B) the
then aggregate Certificate Principal Balance of the Class A Certificates,
Subordinated Certificates and Class P Certificates then outstanding.
UNCERTIFICATED INTEREST: With respect to any REMIC Regular Interest for
any Distribution Date, one month's interest at the REMIC Remittance Rate
applicable to such REMIC Regular Interest for such Distribution Date, accrued on
the Uncertificated Balance or Uncertificated Notional Amount thereof immediately
prior to such Distribution Date. Uncertificated Interest in respect of any REMIC
Regular Interest shall accrue on the basis of a 360-day year consisting of
twelve 30-day months. Uncertificated Interest with respect to each Distribution
Date, as to any REMIC Regular Interest, shall be reduced by an amount equal to
the sum of (a) the aggregate Prepayment Interest Shortfalls, if any, for such
Distribution Date to the extent not covered pursuant to Section 3.15 and (b) the
aggregate amount of any Relief Act Interest Shortfalls, if any, in each case in
the manner and priority described below.
For purposes of calculating the amount of Uncertificated Interest for
the REMIC I Regular Interests for any Distribution Date, the aggregate amount of
any Prepayment Interest Shortfalls (to the extent not covered by the Master
Servicer pursuant to Section 3.15) and Relief Act Interest Shortfalls incurred
in respect of the Mortgage Loans for any Distribution Date shall be allocated
first, (a) with respect to the Group I Mortgage Loans, to REMIC I Regular
Interest I-LT1 and REMIC I Regular Interest I-LT1PF, in each case to the extent
of one month's interest at the then applicable respective REMIC I Remittance
Rate on the respective Uncertificated Balance of each such REMIC I Regular
Interest; provided, however, that with respect to the first Distribution Date,
such amounts relating to the Initial Group I Mortgage Loans shall be allocated
to REMIC I Regular Interest I-LT1 and such amounts relating to the Subsequent
Group I Mortgage Loans shall be allocated to REMIC I Regular Interest I-LT1PF,
and (b) with respect to the Group II Mortgage Loans, to REMIC I Regular Interest
I-LT2 and REMIC I Regular Interest I-LT2PF, in each case to the extent of one
month's interest at the then applicable respective REMIC I Remittance Rate on
the respective Uncertificated Balance of each such REMIC I Regular Interest;
provided, however, that with respect to the first Distribution Date, such
amounts relating to the Initial Group I Mortgage Loans shall be allocated to
REMIC I Regular Interest I-LT2 and such amounts relating to the Subsequent Group
II Mortgage Loans shall be allocated to REMIC I Regular Interest I-LT2PF.
For purposes of calculating the amount of Uncertificated Interest for
the REMIC II Group I Regular Interests for any Distribution Date the aggregate
amount of any Net Prepayment Interest Shortfalls and any Relief Act Interest
Shortfalls incurred in respect of Loan Group I shall be allocated first, REMIC
II Regular Interest I and to the REMIC II Group I Regular Interests ending with
the designation "B", PRO RATA based on, and to the extent of, one month's
interest at the then applicable respective REMIC II Remittance Rates on the
respective Uncertificated Balances of each such REMIC II Regular Interest , and
then, to REMIC II Group I Regular Interests ending with the designation "A", pro
rata based on, and to the extent of, one month's interest at the then applicable
respective REMIC II Remittance Rates on the respective Uncertificated Balances
of each such REMIC II Regular Interest. For purposes of calculating the amount
of Uncertificated Interest for the REMIC II Group II Regular Interests for any
Distribution Date the aggregate amount of any Net Prepayment Interest Shortfalls
and any Relief Act Interest Shortfalls incurred in respect of Loan Group II
shall be allocated first, REMIC II Regular Interest II and to the REMIC II Group
II Regular Interests ending with the designation "B", PRO RATA based on, and to
the extent of, one month's interest at the then applicable respective REMIC II
Remittance Rates on the respective Uncertificated Balances of each such REMIC II
Regular Interest , and then, to REMIC II Group II Regular Interests ending with
the designation "A", pro rata based on, and to the extent of, one month's
interest at the then applicable respective REMIC II Remittance Rates on the
respective Uncertificated Balances of each such REMIC II Regular Interest.
For purposes of calculating the amount of Uncertificated Interest for
the REMIC III Regular Interests for any Distribution Date:
The REMIC III Marker Allocation Percentage of the aggregate amount of
any Prepayment Interest Shortfalls (to the extent not covered by the Master
Servicer pursuant to Section 3.15) and the REMIC III Marker Allocation
Percentage of any Relief Act Interest Shortfalls incurred in respect of the
Mortgage Loans for any Distribution Date shall be allocated among REMIC III
Regular Interest LTAA, REMIC III Regular Interest LTAI1, REMIC III Regular
Interest LTAII1, REMIC III Regular Interest LTAII2, REMIC III Regular Interest
LTAII3, REMIC III Regular Interest LTM1, REMIC III Regular Interest LTM2, REMIC
III Regular Interest LTM3, REMIC III Regular Interest LTM4, REMIC III Regular
Interest LTM5, REMIC III Regular Interest LTM6, REMIC III Regular Interest LTM7,
REMIC III Regular Interest LTM8, REMIC III Regular Interest LTM9, REMIC III
Regular Interest LTM10, REMIC III Regular Interest LTM11 and REMIC III Regular
Interest LTZZ, PRO RATA, based on, and to the extent of, one month's interest at
the then applicable respective REMIC III Remittance Rate on the respective
Uncertificated Balance of each such REMIC III Regular Interest; and
The REMIC III Sub WAC Allocation Percentage of the aggregate amount of
any Prepayment Interest Shortfalls (to the extent not covered by the Master
Servicer pursuant to Section 3.15) and the REMIC III Sub WAC Allocation
Percentage of any Relief Act Interest Shortfalls incurred in respect of the
Mortgage Loans for any Distribution Date shall be allocated to Uncertificated
Interest payable to REMIC III Regular Interest LT1SUB, REMIC III Regular
Interest LT1GRP, REMIC III Regular Interest LT2SUB, REMIC III Regular Interest
LT2GRP and REMIC III Regular Interest LTXX, PRO RATA, based on, and to the
extent of, one month's interest at the then applicable respective REMIC III
Remittance Rate on the respective Uncertificated Balance of each such REMIC III
Regular Interest.
In addition, Uncertificated Interest with respect to each Distribution
Date, as to any REMIC Regular Interest, shall be reduced by Realized Losses, if
any, allocated to such REMIC Regular Interest as described above and pursuant to
Section 4.02.
UNCERTIFICATED NOTIONAL AMOUNT: With respect to REMIC III Regular
Interest LTIO and each Distribution Date listed below, the aggregate
Uncertificated Balance of the REMIC II Regular Interests ending with the
designation "A" listed below:
DISTRIBUTION
DATE REMIC I REGULAR INTERESTS
---- -------------------------
1 I-1-A through I-40-A and II-1-A through II-40-A
2 I-2-A through I-40-A and II-2-A through II-40-A
3 I-3-A through I-40-A and II-3-A through II-40-A
4 I-4-A through I-40-A and II-4-A through II-40-A
5 I-5-A through I-40-A and II-5-A through II-40-A
6 I-6-A through I-40-A and II-6-A through II-40-A
7 I-7-A through I-40-A and II-7-A through II-40-A
8 I-8-A through I-40-A and II-8-A through II-40-A
9 I-9-A through I-40-A and II-9-A through II-40-A
10 I-10-A through I-40-A and II-10-A through II-40-A
11 I-11-A through I-40-A and II-11-A through II-40-A
12 I-12-A through I-40-A and II-12-A through II-40-A
13 I-13-A through I-40-A and II-13-A through II-40-A
14 I-14-A through I-40-A and II-14-A through II-40-A
15 I-15-A through I-40-A and II-15-A through II-40-A
16 I-16-A through I-40-A and II-16-A through II-40-A
17 I-17-A through I-40-A and II-17-A through II-40-A
18 I-18-A through I-40-A and II-18-A through II-40-A
19 I-19-A through I-40-A and II-19-A through II-40-A
20 I-20-A through I-40-A and II-20-A through II-40-A
21 I-21-A through I-40-A and II-21-A through II-40-A
22 I-22-A through I-40-A and II-22-A through II-40-A
23 I-23-A through I-40-A and II-23-A through II-40-A
24 I-24-A through I-40-A and II-24-A through II-40-A
25 I-25-A through I-40-A and II-25-A through II-40-A
26 I-26-A through I-40-A and II-26-A through II-40-A
27 I-27-A through I-40-A and II-27-A through II-40-A
28 I-28-A through I-40-A and II-28-A through II-40-A
29 I-29-A through I-40-A and II-29-A through II-40-A
30 I-30-A through I-40-A and II-30-A through II-40-A
31 I-31-A through I-40-A and II-31-A through II-40-A
32 I-32-A through I-40-A and II-32-A through II-40-A
33 I-33-A through I-40-A and II-33-A through II-40-A
34 I-34-A through I-40-A and II-34-A through II-40-A
35 I-35-A through I-40-A and II-35-A through II-40-A
36 I-36-A through I-40-A and II-36-A through II-40-A
37 I-37-A through I-40-A and II-37-A through II-40-A
38 I-38-A through I-40-A and II-38-A through II-40-A
39 I-39-A through I-40-A and II-39-A through II-40-A
40 I-40-A and II-40-A
thereafter $0.00
With respect to the Class IO Interest and any Distribution Date, an
amount equal to the Uncertificated Notional Amount of the REMIC III Regular
Interest LTIO.
UNDERWRITER'S EXEMPTION: Prohibited Transaction Exemption 2002-41, 67
Fed.Reg. 54487 (2002) (or any successor thereto), or any substantially similar
administrative exemption granted by the U.S. Department of Labor.
UNITED STATES PERSON OR U.S. PERSON:
(i) A citizen or resident of the United States;
(ii) a corporation (or entity treated as a corporation for tax
purposes) created or organized in the United States or under the laws of the
United States or of any state thereof, including, for this purpose, the District
of Columbia;
(iii) a partnership (or entity treated as a partnership for tax
purposes) organized in the United States or under the laws of the United States
or of any state thereof, including, for this purpose, the District of Columbia
(unless provided otherwise by future Treasury regulations);
(iv) an estate whose income is includible in gross income for
United States income tax purposes regardless of its source; or
(v) a trust, if a court within the United States is able to
exercise primary supervision over the administration of the trust and one or
more U.S. Persons have authority to control all substantial decisions of the
trust. Notwithstanding the last clause of the preceding sentence, to the extent
provided in Treasury regulations, certain trusts in existence on August 20,
1996, and treated as U.S. Persons before that date, may elect to continue to be
U.S. Persons.
UNPAID INTEREST AMOUNTS: As of any Distribution Date and any Class of
Certificates, the SUM OF
(a) the EXCESS OF
(i) the SUM OF the Accrued Certificate Interest
Distribution Amount for the Distribution Date and any portion of the
Accrued Certificate Interest Distribution Amount from prior
Distribution Dates remaining unpaid OVER
(ii) the amount in respect of interest on the Class of
Certificates actually distributed on such Distribution Date; and
(b) interest on that excess for the related Interest Accrual Period at the
applicable Pass-Through Rate (to the extent permitted by applicable law).
UNPAID REALIZED LOSS AMOUNT: For any Class of Subordinated Certificates
and any Distribution Date, is the EXCESS OF (i) Applied Realized Loss Amounts
for the Class OVER (ii) the SUM OF all distributions in reduction of Applied
Realized Loss Amounts for the Class on all previous Distribution Dates and any
reductions applied thereto due to the receipt of Subsequent Recoveries. Any
amounts distributed to a Class of Subordinated Certificates with respect to any
Unpaid Realized Loss Amount will not be applied to reduce the Class Certificate
Balance of the Class.
VOTING RIGHTS: The portion of the voting rights of all of the
Certificates that is allocated to any Certificate. As of any date of
determination, (a) 1% of all Voting Rights shall be allocated to any Class C
Certificates and (b) the remaining Voting Rights shall be allocated among
Holders of the remaining Classes of Certificates in proportion to the
Certificate Balances of their respective Certificates on the date (the Voting
Rights to be allocated among the holders of Certificates of each Class in
accordance with their respective Percentage Interests).
Section 1.02 RULES OF CONSTRUCTION.
Except as otherwise expressly provided in this Agreement or unless the
context clearly requires otherwise:
(a) References to designated articles, sections, subsections,
exhibits, and other subdivisions of this Agreement, such as "Section 6.12 (a),"
refer to the designated article, section, subsection, exhibit, or other
subdivision of this Agreement as a whole and to all subdivisions of the
designated article, section, subsection, exhibit, or other subdivision. The
words "herein," "hereof," "hereto," "hereunder," and other words of similar
import refer to this Agreement as a whole and not to any particular article,
section, exhibit, or other subdivision of this Agreement.
(b) Any term that relates to a document or a statute, rule, or
regulation includes any amendments, modifications, supplements, or any other
changes that may have occurred since the document, statute, rule, or regulation
came into being, including changes that occur after the date of this Agreement.
(c) Any party may execute any of the requirements under this
Agreement either directly or through others, and the right to cause something to
be done rather than doing it directly shall be implicit in every requirement
under this Agreement. Unless a provision is restricted as to time or limited as
to frequency, all provisions under this Agreement are implicitly available and
things may happen from time to time.
(d) The term "including" and all its variations mean "including
but not limited to." Except when used in conjunction with the word "either," the
word "or" is always used inclusively (for example, the phrase "A or B" means "A
or B or both," not "either A or B but not both").
(e) A reference to "a [thing]" or "any [of a thing]" does not
imply the existence or occurrence of the thing referred to even though not
followed by "if any," and "any [of a thing]" is any of it. A reference to the
plural of anything as to which there could be either one or more than one does
not imply the existence of more than one (for instance, the phrase "the obligors
on a note" means "the obligor or obligors on a note"). "Until [something
occurs]" does not imply that it must occur, and will not be modified by the word
"unless." The word "due" and the word "payable" are each used in the sense that
the stated time for payment has passed. The word "accrued" is used in its
accounting sense, i.e., an amount paid is no longer accrued. In the calculation
of amounts of things, differences and sums may generally result in negative
numbers, but when the calculation of the excess of one thing over another
results in zero or a negative number, the calculation is disregarded and an
"excess" does not exist. Portions of things may be expressed as fractions or
percentages interchangeably.
(f) All accounting terms used in an accounting context and not
otherwise defined, and accounting terms partly defined in this Agreement, to the
extent not completely defined, shall be construed in accordance with generally
accepted accounting principles. To the extent that the definitions of accounting
terms in this Agreement are inconsistent with their meanings under generally
accepted accounting principles, the definitions contained in this Agreement
shall control. Capitalized terms used in this Agreement without definition that
are defined in the Uniform Commercial Code are used in this Agreement as defined
in the Uniform Commercial Code.
(g) In the computation of a period of time from a specified date
to a later specified date or an open-ended period, the words "from" and
"beginning" mean "from and including," the word "after" means "from but
excluding," the words "to" and "until" mean "to but excluding," and the word
"through" means "to and including." Likewise, in setting deadlines or other
periods, "by" means "on or before." The words "preceding," "following," and
words of similar import, mean immediately preceding or following. References to
a month or a year refer to calendar months and calendar years.
(h) Any reference to the enforceability of any agreement against a
party means that it is enforceable, subject as to enforcement against the party,
to applicable bankruptcy, insolvency, reorganization, and other similar laws of
general applicability relating to or affecting creditors' rights and to general
equity principles.
ARTICLE II
CONVEYANCE OF MORTGAGE LOANS; REPRESENTATIONS AND WARRANTIES
Section 2.01 CONVEYANCE OF MORTGAGE LOANS.
(a) The Seller, concurrently with the execution and delivery of
this Agreement, hereby transfers to the Depositor, without recourse, all the
interest of the Seller in each Mortgage Loan, including all interest and
principal due to the Seller on each Mortgage Loan after the applicable Cut-off
Date and all interest and principal payments on each Mortgage Loan received by
the applicable Cut-off Date for installments of interest and principal due after
the applicable Cut-off Date but not including payments of principal and interest
due on each Mortgage Loan by the applicable Cut-off Date. By the Closing Date,
the Seller shall deliver to the Depositor or, at the Depositor's direction, to
the Trustee or other designee of the Depositor, the Mortgage File for each
Mortgage Loan listed in the Mortgage Loan Schedule (except that, in the case of
Mortgage Loans that are Delayed Delivery Mortgage Loans, such delivery may take
place within five (5) Business Days of the Closing Date) as of the Closing Date.
The delivery of the Mortgage Files shall be made against payment by the
Depositor of the purchase price, previously agreed to by the Seller and
Depositor, for the Mortgage Loans. Also on the Closing Date, the Depositor shall
deposit $100 into the Certificate Account for the benefit of the Class P
Certificates.
(b) The Depositor, concurrently with the execution and delivery of
this Agreement, hereby transfers to the Trustee for the benefit of the
Certificateholders, without recourse, all the interest of the Depositor in the
Trust Fund, together with the Depositor's right to require the Seller to cure
any breach of a representation or warranty made in this Agreement by the Seller
or to repurchase or substitute for any affected Mortgage Loan in accordance with
this Agreement. The Depositor hereby directs the Trustee to execute the Cap
Contract and the Supplemental Interest Trust Administrator to execute the Swap
Agreement.
(c) In connection with the transfer and assignment of each
Mortgage Loan, the Depositor has delivered (or, in the case of the Delayed
Delivery Mortgage Loans, will deliver within the time periods specified in the
definition of Delayed Delivery Mortgage Loans) to the Trustee for the benefit of
the Certificateholders the following documents or instruments with respect to
each Mortgage Loan so assigned:
(i) The original Mortgage Note, endorsed by manual or
facsimile signature in blank in the following form: "Pay to the order
of _______________ ______________without recourse," with all
intervening endorsements showing a complete chain of endorsement from
the originator to the Person endorsing the Mortgage Note (each
endorsement being sufficient to transfer all interest of the party so
endorsing, as noteholder or assignee thereof, in that Mortgage Note) or
a lost note affidavit for any Lost Mortgage Note from the Seller
stating that the original Mortgage Note was lost or destroyed, together
with a copy of the Mortgage Note.
(ii) Except as provided below, for each Mortgage Loan that
is not a MERS Mortgage Loan, the original recorded Mortgage or a copy
of such Mortgage certified by the Seller as being a true and complete
copy of the Mortgage (or, in the case of a Mortgage for which the
related Mortgaged Property is located in the Commonwealth of Puerto
Rico, a true copy of the Mortgage certified as such by an applicable
notary) and in the case of each MERS Mortgage Loan, the original
Mortgage, noting the presence of the MIN of the Mortgage Loans and
either language indicating that the Mortgage Loan is a MOM Loan if the
Mortgage Loan is a MOM Loan or if the Mortgage Loan was not a MOM Loan
at origination, the original Mortgage and the assignment thereof to
MERS, with evidence of recording indicated thereon, or a copy of the
Mortgage certified by the public recording office in which such
Mortgage has been recorded.
(iii) In the case of each Mortgage Loan that is not a MERS
Mortgage Loan, a duly executed assignment of the Mortgage (which may be
included in a blanket assignment or assignments), together with, except
as provided below, all interim recorded assignments of such mortgage
(each such assignment, when duly and validly completed, to be in
recordable form and sufficient to effect the assignment of and transfer
to the assignee thereof, under the Mortgage to which the assignment
relates); provided, that if the related Mortgage has not been returned
from the applicable public recording office, such assignment of the
Mortgage may exclude the information to be provided by the recording
office; provided, further, that such assignment of Mortgage need not be
delivered in the case of a Mortgage for which the related Mortgaged
Property is located in the Commonwealth of Puerto Rico.
(iv) The original or copies of each assumption,
modification, written assurance, or substitution agreement.
(v) Except as provided below, the original or duplicate
original lender's title policy and all its riders.
In addition, in connection with the assignment of any MERS Mortgage
Loan, the Seller agrees that it will cause, at the Seller's expense, the MERS(R)
System to indicate that the Mortgage Loans sold by the Seller to the Depositor
have been assigned by the Seller to the Trustee in accordance with this
Agreement for the benefit of the Certificateholders by including (or deleting,
in the case of Mortgage Loans which are repurchased in accordance with this
Agreement) in such computer files the information required by the MERS(R) System
to identify the series of the Certificates issued in connection with such
Mortgage Loans. The Seller further agrees that it will not, and will not permit
the Master Servicer to, and the Master Servicer agrees that it will not, alter
the information referenced in this paragraph with respect to any Mortgage Loan
sold by the Seller to the Depositor during the term of this Agreement unless and
until such Mortgage Loan is repurchased in accordance with the terms of this
Agreement.
In the event that in connection with any Mortgage Loan that is not a
MERS Mortgage Loan the Depositor cannot deliver (a) the original recorded
Mortgage, (b) all interim recorded assignments or (c) the lender's title policy
(together with all riders thereto) satisfying the requirements of clause (ii),
(iii) or (v) above, respectively, concurrently with the execution and delivery
hereof because such document or documents have not been returned from the
applicable public recording office in the case of clause (ii) or (iii) above, or
because the title policy has not been delivered to either the Master Servicer or
the Depositor by the applicable title insurer in the case of clause (v) above,
the Depositor shall promptly deliver to the Trustee, in the case of clause (ii)
or (iii) above, such original Mortgage or such interim assignment, as the case
may be, with evidence of recording indicated thereon upon receipt thereof from
the public recording office, or a copy thereof, certified, if appropriate, by
the relevant recording office, but in no event shall any such delivery of the
original Mortgage and each such interim assignment or a copy thereof, certified,
if appropriate, by the relevant recording office, be made later than one year
following the Closing Date, or, in the case of clause (v) above, no later than
120 days following the Closing Date; provided, however, that in the event the
Depositor is unable to deliver by such date each Mortgage and each such interim
assignment by reason of the fact that any such documents have not been returned
by the appropriate recording office, or, in the case of each such interim
assignment, because the related Mortgage has not been returned by the
appropriate recording office, the Depositor shall deliver such documents to the
Trustee as promptly as possible upon receipt thereof and, in any event, within
720 days following the Closing Date.
The Depositor shall forward to the Trustee (a) from time to time
additional original documents evidencing an assumption or modification of a
Mortgage Loan and (b) any other documents required to be delivered by the
Depositor or the Master Servicer to the Trustee. If the original Mortgage is not
delivered and in connection with the payment in full of the related Mortgage
Loan the public recording office requires the presentation of a "lost
instruments affidavit and indemnity" or any equivalent document, because only a
copy of the Mortgage can be delivered with the instrument of satisfaction or
reconveyance, the Master Servicer shall execute and deliver the required
document to the public recording office. If a public recording office retains
the original recorded Mortgage or if a Mortgage is lost after recordation in a
public recording office, the Seller shall deliver to the Trustee a copy of the
Mortgage certified by the public recording office to be a true and complete copy
of the original recorded Mortgage.
As promptly as practicable after any transfer of a Mortgage Loan under
this Agreement, and in any event within thirty days after the transfer, the
Trustee shall (i) affix the Trustee's name to each assignment of Mortgage, as
its assignee, and (ii) cause to be delivered for recording in the appropriate
public office for real property records the assignments of the Mortgages to the
Trustee, except that, if the Trustee has not received the information required
to deliver any assignment of a Mortgage for recording, the Trustee shall deliver
it as soon as practicable after receipt of the needed information and in any
event within thirty days.
Notwithstanding the foregoing, however, for administrative convenience
and facilitation of servicing and to reduce closing costs, the assignments of
Mortgage shall not be required to be submitted for recording (except with
respect to any Mortgage Loan located in Maryland) unless such failure to record
would result in a withdrawal or a downgrading by any Rating Agency of the rating
on any Class of Certificates; provided, however, that each assignment of
Mortgage shall be submitted for recording by the Seller (at the direction of the
Master Servicer) in the manner described above, at no expense to the Trust Fund
or the Trustee, upon the earliest to occur of: (i) reasonable direction by the
Holders of Certificates entitled to at least 25% of the Voting Rights or by the
NIM Insurer, if any, (ii) [RESERVED], (iii) the occurrence of a bankruptcy,
insolvency or foreclosure relating to the Seller, (iv) the occurrence of a
servicing transfer as described in Section 7.02 hereof and (v) if the Seller is
not the Master Servicer and with respect to any one assignment or Mortgage, the
occurrence of a bankruptcy, insolvency or foreclosure relating to the Mortgagor
under the related Mortgage. Notwithstanding the foregoing, if the Master
Servicer is unable to pay the cost of recording the assignments of Mortgage,
such expense shall be paid by the Trustee and shall be reimbursable out of the
Distribution Account.
If any Mortgage Loans have been prepaid in full as of the Closing Date,
the Depositor, in lieu of delivering the above documents to the Trustee, will
deposit in the Certificate Account the portion of the prepayment that is
required to be deposited in the Certificate Account pursuant to Section 3.06.
Notwithstanding anything to the contrary in this Agreement, within five
(5) Business Days after the Closing Date, the Seller shall either:
(i) deliver to the Trustee the Mortgage File as required pursuant
to this Section 2.01 for each Delayed Delivery Mortgage Loan; or
(ii) (A) repurchase the Delayed Delivery Mortgage Loan or (B)
substitute the Delayed Delivery Mortgage Loan for a Substitute Mortgage Loan,
which repurchase or substitution shall be accomplished in the manner and subject
to the conditions in Section 2.03.
By the fifth Business Day after the Closing Date, the Trustee shall, in
accordance with Section 2.02, send a Delayed Delivery Certification
substantially in the form of Exhibit G-2 (with any applicable exceptions noted
thereon) for all Delayed Delivery Mortgage Loans delivered within the specified
numbers of days after the pertinent date. The Trustee will promptly send a copy
of such Delayed Delivery Certification to each Rating Agency. If the Seller
fails to deliver a Mortgage File for any Delayed Delivery Mortgage Loan within
the period specified herein, the Seller shall use its best reasonable efforts to
effect a substitution, rather than a repurchase of, any Deleted Mortgage Loan.
The cure period provided for in Section 2.02 or in Section 2.03 shall not apply
to the initial delivery of the Mortgage File for such Delayed Delivery Mortgage
Loan, but rather the Seller shall have five (5) Business Days to cure such
failure to deliver. At the end of such period, the Trustee shall send a Delayed
Delivery Certification for the Delayed Delivery Mortgage Loans delivered during
such period in accordance with the provisions of Section 2.02.
The Seller agrees to treat the transfer of the Mortgage Loans to the
Depositor as a sale for all tax, accounting, and regulatory purposes.
It is agreed and understood by the parties hereto that it is not
intended that any Mortgage Loan be included in the Trust Fund that is a
"High-Cost Home Loan" (or any other similarly designated loan) as defined in the
New Jersey Home Ownership Act effective November 27, 2003, The Home Loan
Protection Act of New Mexico effective January 1, 2004, The Massachusetts
Predatory Home Loan Practices Act effective November 7, 2004 or The Indiana Home
Loan Practices Act effective January 1, 2005.
Section 2.02 ACCEPTANCE BY THE TRUSTEE OF THE MORTGAGE LOANS.
The Trustee acknowledges receipt of the documents identified in the
Initial Certification in the form of Exhibit G-1 and declares that it holds and
will hold such documents and the other documents delivered to it constituting
the Mortgage Files for the Mortgage Loans, and that it holds or will hold such
other assets as are included in the Trust Fund, in trust for the exclusive use
and benefit of all present and future Certificateholders. The Trustee
acknowledges that it will maintain possession of the related Mortgage Notes in
the State of California, unless otherwise permitted by the Rating Agencies.
The Trustee agrees to execute and deliver on the Closing Date to the
Depositor, the Master Servicer and the Seller an Initial Certification in the
form of Exhibit G-1. Based on its review and examination, and only as to the
documents identified in the Initial Certification, the Trustee acknowledges that
the documents appear regular on their face and relate to the Mortgage Loans. The
Trustee shall be under no duty to inspect, review, or examine said documents,
instruments, certificates, or other papers to determine that the same are
genuine, enforceable, or appropriate for the represented purpose or that they
have actually been recorded in the real estate records or that they are other
than what they purport to be on their face.
By the thirtieth day after the Closing Date (or if that day is not a
Business Day, the succeeding Business Day), the Trustee shall deliver to the
Depositor, the Master Servicer and the Seller a Delayed Delivery Certification
with respect to the Mortgage Loans, substantially in the form of Exhibit G-2,
with any applicable exceptions noted thereon.
Not later than ninety (90) days after the Closing Date, the Trustee
shall deliver to the Depositor, the Master Servicer and the Seller a Final
Certification in the form of Exhibit H, with any applicable exceptions noted
thereon.
If, in the course of its review, the Trustee finds any document
constituting a part of a Mortgage File that does not meet the requirements of
Section 2.01, the Trustee shall list such as an exception in the Final
Certification. The Trustee shall not make any determination as to whether (i)
any endorsement is sufficient to transfer all interest of the party so
endorsing, as noteholder or assignee thereof, in that Mortgage Note or (ii) any
assignment is in recordable form or is sufficient to effect the assignment of
and transfer to the assignee thereof under the mortgage to which the assignment
relates. The Seller shall promptly correct any such defect within ninety (90)
days from the date it was so notified of the defect and, with respect to any
Mortgage Loan for which such defect is materially adverse to the
Certificateholders, if the Seller does not correct such defect within that
period, the Seller shall either (a) substitute for the related Mortgage Loan a
Substitute Mortgage Loan, which substitution shall be accomplished pursuant to
Section 2.03, or (b) purchase the Mortgage Loan at its Purchase Price from the
Trustee within ninety (90) days from the date the Seller was notified of the
defect in writing.
If a substitution or purchase of a Mortgage Loan pursuant to this
provision is required because of a delay in delivery of any documents by the
appropriate recording office, or there is a dispute between either the Master
Servicer or the Seller and the Trustee over the location or status of the
recorded document, then the substitution or purchase shall occur within 720 days
from the Closing Date. In no other case may a substitution or purchase occur
more than 540 days from the Closing Date.
The Trustee shall deliver written notice to each Rating Agency within
270 days from the Closing Date indicating each Mortgage Loan (a) that has not
been returned by the appropriate recording office or (b) as to which there is a
dispute as to location or status of the Mortgage Loan. The notice shall be
delivered every ninety (90) days thereafter until the related Mortgage Loan is
returned to the Trustee. Any substitution pursuant to (a) above or purchase
pursuant to (b) above shall not be effected before the delivery to the Trustee
of an Opinion of Counsel, if required by Section 2.05, and any substitution
pursuant to (a) above shall not be effected before the additional delivery to
the Trustee of a Request for Release substantially in the form of Exhibit N. No
substitution is permitted to be made in any calendar month after the
Determination Date for the month.
The Purchase Price for any Mortgage Loan shall be deposited by the
Seller in the Certificate Account by the Distribution Account Deposit Date for
the Distribution Date in the month following the month of repurchase and, upon
receipt of the deposit and certification with respect thereto in the form of
Exhibit N, the Trustee shall release the related Mortgage File to the Seller and
shall execute and deliver at the Seller's request any instruments of transfer or
assignment prepared by the Seller, in each case without recourse, necessary to
vest in the Seller, or a designee, the Trustee's interest in any Mortgage Loan
released pursuant hereto.
If pursuant to the foregoing provisions the Seller repurchases a
Mortgage Loan that is a MERS Mortgage Loan, the Master Servicer shall either (i)
cause MERS to execute and deliver an assignment of the Mortgage in recordable
form to transfer the Mortgage from MERS to the Seller and shall cause such
Mortgage to be removed from registration on the MERS(R) System in accordance
with MERS' rules and regulations or (ii) cause MERS to designate on the MERS(R)
System the Seller as the beneficial holder of such Mortgage Loan.
The Trustee shall retain possession and custody of each Mortgage File
in accordance with and subject to the terms and conditions herein. The Master
Servicer shall promptly deliver to the Trustee, upon the execution or receipt
thereof, the originals of such other documents or instruments constituting the
Mortgage File as come into the possession of the Master Servicer from time to
time.
The obligation of the Seller to substitute for or to purchase any
Mortgage Loan that does not meet the requirements of Section 2.01 shall
constitute the sole remedy respecting the defect available to the Trustee, the
Depositor, and any Certificateholder against the Seller.
Section 2.03 REPRESENTATIONS, WARRANTIES, AND COVENANTS OF THE
SELLER AND THE MASTER SERVICER.
(a) IndyMac, in its capacities as Seller and Master Servicer,
hereby makes the representations and warranties in Schedule II, and by this
reference incorporated herein, to the Depositor, the Trustee and the
Supplemental Interest Trust Administrator, as of the Closing Date. The Master
Servicer will fully furnish, in accordance with the Fair Credit Reporting Act
and its implementing regulations, accurate and complete information (i.e.,
favorable and unfavorable) on its credit files for the related Mortgagor for
each Mortgage Loan to Equifax, Experian and Trans Union Credit Information
Company on a monthly basis.
(b) The Seller, in its capacity as Seller, hereby makes the
representations and warranties in Schedule III, and by this reference
incorporated herein, to the Depositor the Trustee and the Supplemental Interest
Trust Administrator, as of the Closing Date, or if so specified therein, as of
the applicable Cut-off Date.
(c) Upon discovery by any of the parties hereto of a breach of a
representation or warranty made pursuant to Section 2.03(b) that materially and
adversely affects the interests of the Certificateholders in any Mortgage Loan,
the party discovering such breach shall give prompt notice thereof to the other
parties and to the NIM Insurer. A breach of the representation or warranty made
pursuant to clauses (29), (30), (34), (35), (36), (37), (38) and (39) of
Schedule III or a breach of the covenant of the Master Servicer made pursuant to
clause (a) above will be deemed to materially and adversely affect the interests
of the Certificateholders in the related Mortgage Loan. The Seller hereby
covenants that within ninety (90) days of the earlier of its discovery or its
receipt of written notice from any party of a breach of any representation or
warranty made pursuant to Section 2.03(b) that materially and adversely affects
the interests of the Certificateholders in any Mortgage Loan, it shall cure such
breach in all material respects, and if such breach is not so cured, shall: (i)
if the 90 day period expires before the second anniversary of the Closing Date,
remove the Mortgage Loan (a "DELETED MORTGAGE LOAN") from the Trust Fund and
substitute in its place a Substitute Mortgage Loan, in accordance with this
Section 2.03; or (ii) repurchase the affected Mortgage Loan or Mortgage Loans
from the Trustee at the Purchase Price in the manner stated below. Any
substitution pursuant to (i) above shall not be effected before the delivery to
the Trustee of the Opinion of Counsel, if required by Section 2.05, and a
Request for Release substantially in the form of Exhibit N, and the Mortgage
File for any Substitute Mortgage Loan. The Seller shall promptly reimburse the
Master Servicer and the Trustee for any expenses reasonably incurred by the
Master Servicer or the Trustee in respect of enforcing the remedies for the
breach.
With respect to any Substitute Mortgage Loan or Loans, the Seller shall
deliver to the Trustee for the benefit of the Certificateholders the Mortgage
Note, the Mortgage, the related assignment of the Mortgage, and any other
documents and agreements required by Section 2.01, with the Mortgage Note
endorsed and the Mortgage assigned as required by Section 2.01. No substitution
is permitted to be made in any calendar month after the Determination Date for
the month. Scheduled Payments due with respect to Substitute Mortgage Loans in
the Remittance Period of substitution shall not be part of the Trust Fund and
will be retained by the Seller on the next Distribution Date. For the Remittance
Period of substitution, distributions to Certificateholders will include the
monthly payment due on any Deleted Mortgage Loan for the Remittance Period and
thereafter the Seller shall be entitled to retain all amounts received with
respect to the Deleted Mortgage Loan.
The Master Servicer shall amend the Mortgage Loan Schedule for the
benefit of the Certificateholders to reflect the removal of the Deleted Mortgage
Loan and the substitution of the Substitute Mortgage Loans and the Master
Servicer shall deliver the amended Mortgage Loan Schedule to the Trustee. Upon
the substitution, the Substitute Mortgage Loans shall be subject to this
Agreement in all respects, and the Seller shall be deemed to have made with
respect to the Substitute Mortgage Loans, as of the date of substitution, the
representations and warranties made pursuant to Section 2.03(b) with respect to
the Mortgage Loan. Upon any substitution and the deposit to the Certificate
Account of the amount required to be deposited therein in connection with the
substitution as described in the following paragraph, the Trustee shall release
the Mortgage File held for the benefit of the Certificateholders relating to the
Deleted Mortgage Loan to the Seller and shall execute and deliver at the
Seller's direction such instruments of transfer or assignment prepared by the
Seller, in each case without recourse, as shall be necessary to vest title in
the Seller, or its designee, the Trustee's interest in any Deleted Mortgage Loan
substituted for pursuant to this Section 2.03.
For any month in which the Seller substitutes one or more Substitute
Mortgage Loans for one or more Deleted Mortgage Loans, the Master Servicer will
determine the amount by which the aggregate principal balance of all such
Substitute Mortgage Loans as of the date of substitution is less than the
aggregate Stated Principal Balance of all the Deleted Mortgage Loans (after
application of the scheduled principal portion of the monthly payments due in
the Remittance Period of substitution and any adjustments due to any costs or
damages incurred by the Trust Fund in connection with any violation of the
Mortgage Loan of any predatory or abusive lending law). The amount of the
shortage (the "SUBSTITUTION ADJUSTMENT AMOUNT") PLUS, if the Seller is not the
Master Servicer, the aggregate of any unreimbursed Advances and Servicing
Advances with respect to the Deleted Mortgage Loans, shall be deposited into the
Certificate Account by the Seller by the Distribution Account Deposit Date for
the Distribution Date in the month succeeding the calendar month during which
the related Mortgage Loan became required to be purchased or replaced hereunder.
If the Seller repurchases a Mortgage Loan, the Purchase Price therefor
shall be deposited in the Certificate Account pursuant to Section 3.06 by the
Distribution Account Deposit Date for the Distribution Date in the month
following the month during which the Seller became obligated hereunder to
repurchase or replace the Mortgage Loan and upon such deposit of the Purchase
Price, the delivery of the Opinion of Counsel required by Section 2.05 and
receipt of a Request for Release in the form of Exhibit N, the Trustee shall
release the related Mortgage File held for the benefit of the Certificateholders
to such Person, and the Trustee shall execute and deliver at such Person's
direction such instruments of transfer or assignment prepared by such Person, in
each case without recourse, as shall be necessary to transfer title from the
Trustee. The obligation under this Agreement of any Person to cure, repurchase,
or replace any Mortgage Loan as to which a breach has occurred and is continuing
shall constitute the sole remedy against the Person respecting the breach
available to Certificateholders, the Depositor, the Trustee or the Supplemental
Interest Trust Administrator on their behalf.
The representations and warranties made pursuant to this Section 2.03
shall survive delivery of the respective Mortgage Files to the Trustee for the
benefit of the Certificateholders.
Section 2.04 REPRESENTATIONS AND WARRANTIES OF THE DEPOSITOR
AS TO THE MORTGAGE LOANS.
The Depositor hereby represents and warrants to the Trustee and the
Supplemental Interest Trust Administrator with respect to each Mortgage Loan as
of the date hereof or such other date set forth herein that as of the Closing
Date, and following the transfer of the Mortgage Loans to it by the Seller, the
Depositor had good title to the Mortgage Loans and the Mortgage Notes were
subject to no offsets, defenses, or counterclaims.
The Depositor hereby transfers to the Trustee all of its rights with
respect to the Mortgage Loans, including the representations and warranties of
the Seller made pursuant to Section 2.03(b), together with all rights of the
Depositor to require the Seller to cure any breach thereof or to repurchase or
substitute for any affected Mortgage Loan in accordance with this Agreement.
The representations and warranties in this Section 2.04 shall survive
delivery of the Mortgage Files to the Trustee. Upon discovery by the Depositor,
the Trustee or the Supplemental Interest Trust Administrator of any breach of
any of the representations and warranties in this Section that materially and
adversely affects the interest of the Certificateholders, the party discovering
the breach shall give prompt written notice to the others, the NIM Insurer, and
to each Rating Agency. If the NIM Insurer discovers such a breach, it may notify
the parties to this Agreement and each Rating Agency.
Section 2.05 DELIVERY OF OPINION OF COUNSEL IN CONNECTION WITH
SUBSTITUTIONS AND REPURCHASES.
(a) Notwithstanding any contrary provision of this Agreement, no
substitution pursuant to Section 2.01, 2.02, 2.03 or 2.05 shall be made more
than ninety (90) days after the Closing Date unless the Seller delivers to the
Trustee an Opinion of Counsel, which Opinion of Counsel shall not be at the
expense of either the Trustee or the Trust Fund, addressed to the Trustee, to
the effect that such substitution will not (i) result in the imposition of the
tax on "prohibited transactions" on the Trust Fund or contributions after the
Startup Date, as defined in Sections 860F(a)(2) and 860G(d) of the Code,
respectively, or (ii) cause any REMIC created under this Agreement to fail to
qualify as a REMIC at any time that any Certificates are outstanding.
(b) Upon discovery by the Depositor, the Seller, the Master
Servicer or the Trustee that any Mortgage Loan does not constitute a "qualified
mortgage" within the meaning of Section 860G(a)(3) of the Code, the party
discovering such fact shall promptly (and in any event within five (5) Business
Days of discovery) give written notice thereof to the other parties and the NIM
Insurer. If the NIM Insurer discovers such facts, it may notify the parties to
this Agreement. In connection therewith, the Trustee shall require the Seller,
at the Seller's option, to either (i) substitute, if the conditions in Section
2.03(c) with respect to substitutions are satisfied, a Substitute Mortgage Loan
for the affected Mortgage Loan, or (ii) repurchase the affected Mortgage Loan
within ninety (90) days of such discovery in the same manner as it would a
Mortgage Loan for a breach of representation or warranty made pursuant to
Section 2.03. The Trustee shall reconvey to the Seller the Mortgage Loan to be
released pursuant hereto in the same manner, and on the same terms, as it would
a Mortgage Loan repurchased for breach of a representation or warranty contained
in Section 2.03.
Section 2.06 EXECUTION AND DELIVERY OF CERTIFICATES.
The Trustee acknowledges the transfer and assignment to it of the Trust
Fund and, concurrently with the transfer and assignment, has executed and
delivered to or upon the order of the Depositor, the Certificates in authorized
denominations evidencing directly or indirectly the entire ownership of the
Trust Fund. The Trustee agrees to hold the Trust Fund and exercise the rights
referred to above for the benefit of all present and future Holders of the
Certificates.
Section 2.07 CONVEYANCE OF SUBSEQUENT MORTGAGE LOANS.
(a) Subject to the conditions set forth in paragraph (b) below in
consideration of the Trustee's delivery on the Subsequent Transfer Dates to or
upon the order of the Depositor of all or a portion of the balance of funds in
the Pre-Funding Accounts, the Depositor shall on any Subsequent Transfer Date
sell, transfer, assign, set over and convey without recourse to the Trust Fund
but subject to the other terms and provisions of this Agreement all of the
right, title and interest of the Depositor in an to (i) the Subsequent Mortgage
Loans identified on the Mortgage Loan Schedule attached to the related
Subsequent Transfer Instrument delivered by the Depositor on such Subsequent
Transfer Date, (ii) all interest accruing thereon on and after the Subsequent
Cut-off Date and all collections in respect of interest and principal due after
the Subsequent Cut-off Date and (iii) all items with respect to such Subsequent
Mortgage Loans to be delivered pursuant to Section 2.01 and the other items in
the related Mortgage Files; provided, however, that the Depositor reserves and
retains all right, title and interest in and to principal received and interest
accruing on the Subsequent Mortgage Loans prior to the related Subsequent
Cut-off Date. The transfer to the Trustee by the Depositor of the Subsequent
Mortgage Loans identified on the Mortgage Loan Schedule shall be absolute and is
intended by the Depositor, the Master Servicer, the Trustee, the Supplemental
Interest Trust Administrator and the Certificateholders to constitute and to be
treated as a sale of the Subsequent Mortgage Loans by the Depositor to the Trust
Fund. The related Mortgage File for each Subsequent Mortgage Loan shall be
delivered to the Trustee at least three (3) Business Days prior to the related
Subsequent Transfer Date.
The purchase price paid by the Trustee from amounts released from the
Group I Pre-Funding Account or the Group II Pre-Funding Account, as applicable,
shall be 100% of the aggregate Stated Principal Balance of the related
Subsequent Mortgage Loans so transferred (as identified on the Mortgage Loan
Schedule attached to the related Subsequent Transfer Instrument provided by the
Depositor). This Agreement shall constitute a fixed-price contract in accordance
with Section 860G(a)(3)(A)(ii) of the Code.
(b) The Depositor shall transfer to the Trustee for deposit in the
pool of Mortgage Loans the Subsequent Mortgage Loans and the other property and
rights related thereto as described in paragraph (a) above, and the Trustee
shall release funds from the Group I Pre-Funding Account or the Group II
Pre-Funding Account, as applicable, only upon the satisfaction of each of the
following conditions on or prior to the related Subsequent Transfer Date:
(i) the Depositor shall have provided the Trustee and the
Rating Agencies with a timely Addition Notice and shall have provided
any information reasonably requested by the Trustee with respect to the
Subsequent Mortgage Loans;
(ii) the Depositor shall have delivered to the Trustee a
duly executed Subsequent Transfer Instrument, which shall include a
Mortgage Loan Schedule listing the Subsequent Mortgage Loans, and the
Seller shall have delivered a computer file acceptable to the Trustee
containing such Mortgage Loan Schedule to the Trustee at least three
(3) Business Days prior to the related Subsequent Transfer Date;
(iii) as of each Subsequent Transfer Date, as evidenced by
delivery of the Subsequent Transfer Instrument, the Depositor shall not
be insolvent nor shall it have been rendered insolvent by such transfer
nor shall it be aware of any pending insolvency;
(iv) such sale and transfer shall not result in a material
adverse tax consequence to the Trust Fund or the Certificateholders;
(v) the Funding Period shall not have terminated;
(vi) the Depositor shall not have selected the Subsequent
Mortgage Loans in a manner that it believed to be adverse to the
interests of the Certificateholders;
(vii) the NIM Insurer, if any, must consent to such
conveyance;
(viii) the Depositor shall have delivered to the Trustee a
Subsequent Transfer Instrument confirming the satisfaction of the
conditions precedent specified in this Section 2.07 and, pursuant to
the Subsequent Transfer Instrument, assigned to the Trustee without
recourse for the benefit of the Certificateholders all the right, title
and interest of the Depositor, in, to and under this Agreement, to the
extent of the Subsequent Mortgage Loans;
(ix) the Depositor shall have delivered to the Trustee an
Opinion of Counsel addressed to the Trustee and the Rating Agencies
with respect to the transfer of the Subsequent Mortgage Loans
substantially in the form of the Opinion of Counsel delivered to the
Trustee on the Closing Date regarding the true sale of the Subsequent
Mortgage Loans.
(c) The obligation of the Trust Fund to purchase a Subsequent
Mortgage Loan on any Subsequent Transfer Date is subject to the satisfaction of
the conditions set forth in the immediately preceding paragraph and the accuracy
of the following representations and warranties with respect to each such
Subsequent Mortgage Loan determined as of the applicable Subsequent Cut-off
Date: (i) such Subsequent Mortgage Loan may not be 30 or more days delinquent as
of the applicable Subsequent Cut-off Date; provided, however, that such
Subsequent Mortgage Loans may have a first payment date occurring on or after
the applicable Subsequent Cut-off Date and, therefore, such Subsequent Mortgage
Loan could not have been delinquent as of such Subsequent Cut-off Date; (ii) the
remaining term to maturity of such Subsequent Mortgage Loan will not be less
than 175 months and will not exceed 360 months from its first payment date;
(iii) the Subsequent Mortgage Loan may not provide for negative amortization;
(iv) the Subsequent Mortgage Loan will not have a Loan-to-Value Ratio greater
than 100.000%; (v) such Subsequent Mortgage Loans will have, as of the related
Subsequent Cut-off Date, a weighted average age since origination not in excess
of two months; (vi) such Subsequent Mortgage Loan will not have a Mortgage Rate
less than 4.750% or greater than 12.500%; (vii) such Subsequent Mortgage Loan
will have been serviced by the Master Servicer since origination or purchase by
the Seller in accordance with its standard servicing practices; (viii) such
Subsequent Mortgage Loan will have a first payment date occurring on or before
December 1, 2004; (ix) such Subsequent Mortgage Loan will have a principal
balance no greater than $740,000; and (x) such Subsequent Mortgage Loan will
have been underwritten in accordance with the criteria set forth under "The
Mortgage Pool--Underwriting Standards" in the Prospectus Supplement.
(d) Following the purchase of any Subsequent Mortgage Loan by the
Trust Fund to be included in Loan Group I, the Mortgage Loans in Loan Group I
(including the related Subsequent Mortgage Loans) will as of the related
Subsequent Cut-off Date: (i) have an original term to stated maturity of not
more than 360 months from the first payment date thereon; (ii) have a Mortgage
Rate of not less than 4.750% and not more than 12.250%; (iii) have a weighted
average Loan-to-Value Ratio of approximately 78.150%; (iv) have no Mortgage Loan
with a principal balance in excess of $552,250; (v) will consist of Mortgage
Loans with Prepayment Charges representing no less than approximately 78.150% of
the Mortgage Loans in Loan Group I; (vi) with respect to the adjustable-rate
Mortgage Loans in Loan Group I, have a weighted average Margin of approximately
5.649%; and (vii) have a weighted average FICO Score of approximately 607; in
each case measured by aggregate principal balance of the Mortgage Loans in Loan
Group I as of the Cut-off Date or Subsequent Cut-off Date applicable to each
Mortgage Loan. For purposes of the calculations described in this paragraph,
percentages of the Mortgage Loans in Loan Group I will be based on the principal
balance of the Closing Date Mortgage Loans in Loan Group I as of the Cut-off
Date and the principal balance of the Subsequent Mortgage Loans included in Loan
Group I as of the related Subsequent Cut-off Date.
Following the purchase of any Subsequent Mortgage Loan by the Trust
Fund to be included in Loan Group II, the Mortgage Loans in Loan Group II
(including the related Subsequent Mortgage Loans) will as of the related
Subsequent Cut-off Date: (i) have an original term to stated maturity of not
more than 360 months from the first payment date thereon; (ii) have a Mortgage
Rate of not less than 4.750% and not more than 12.500%; (iii) have a weighted
average Loan-to-Value Ratio of approximately 78.370%; (iv) have no Mortgage Loan
with a principal balance in excess of $900,000; (v) will consist of Mortgage
Loans with Prepayment Charges representing no less than approximately 72.810% of
the Mortgage Loans in Loan Group II; (vi) with respect to the adjustable-rate
Mortgage Loans in Loan Group II, have a weighted average Margin of approximately
5.460%; and (vii) have a weighted average FICO Score of approximately 624; in
each case measured by aggregate principal balance of the Mortgage Loans in Loan
Group II as of the Cut-off Date or Subsequent Cut-off Date applicable to each
Mortgage Loan. For purposes of the calculations described in this paragraph,
percentages of the Mortgage Loans in Loan Group II will be based on the
principal balance of the Closing Date Mortgage Loans in Loan Group II as of the
Cut-off Date and the principal balance of the Subsequent Mortgage Loans in Loan
Group II as of the related Subsequent Cut-off Date.
(e) Notwithstanding the foregoing, any Subsequent Mortgage Loan
may be rejected by any Rating Agency if the inclusion of any such Subsequent
Mortgage Loan would adversely affect the ratings of any Class of Certificates.
At least one (1) Business Day prior to the Subsequent Transfer Date, each Rating
Agency shall notify the Trustee as to which Subsequent Mortgage Loans, if any,
shall not be included in the transfer on the Subsequent Transfer Date; provided,
however, that the Seller shall have delivered to each Rating Agency at least
three (3) Business Days prior to such Subsequent Transfer Date a computer file
acceptable to each Rating Agency describing the characteristics specified in
paragraphs (c) and (d) above.
Section 2.08 REMIC MATTERS.
The Preliminary Statement sets forth the designations and "latest
possible maturity date" for federal income tax purposes of all interests created
hereby.
(A) ISSUANCE OF THE REMIC I REGULAR INTERESTS AND THE CLASS
R-I INTEREST.
The Trustee acknowledges the assignment to it of the Mortgage
Loans and the delivery to it of the Mortgage Files, subject to the provisions of
Section 2.01 and Section 2.02, together with the assignment to it of all other
assets included in REMIC I, the receipt of which is hereby acknowledged.
Concurrently with such assignment and delivery and in exchange therefor, the
Trustee, pursuant to the written request of the Depositor executed by an officer
of the Depositor, has executed, authenticated and delivered to or upon the order
of the Depositor, the Class R-I Interest in authorized denominations. The
interests evidenced by the Class R-I Interest, together with the REMIC I Regular
Interests, constitute the entire beneficial ownership interest in REMIC I. The
rights of the Class R Certificateholders and REMIC II (as holder of the REMIC I
Regular Interests) to receive distributions from the proceeds of REMIC I in
respect of the Class R-I Interest and the REMIC I Regular Interests,
respectively, and all ownership interests evidenced or constituted by the Class
R-I Interest and the REMIC I Regular Interests, shall be as set forth in this
Agreement.
(B) CONVEYANCE OF THE REMIC I REGULAR INTERESTS; REMIC I,
REMIC II, REMIC III AND REMIC IV BY THE TRUSTEE.
(i) The Depositor, concurrently with the execution and delivery
hereof, does hereby transfer, assign, set over and otherwise convey in trust to
the Trustee, without recourse, all the right, title and interest of the
Depositor in and to the assets described in the definition of REMIC I for the
benefit of the Holders of the REMIC I Regular Interests (which are
uncertificated) and the Class R Certificates (in respect of the Class R-I
Interest). The Trustee acknowledges receipt of the assets described in the
definition of REMIC I and declares that it holds and shall hold the same in
trust for the exclusive use and benefit of the Holders of the REMIC I Regular
Interests and the Class R Certificates (in respect of the Class R-I Interest).
The interests evidenced by the Class R-I Interest, together with the REMIC I
Regular Interests, constitute the entire beneficial ownership interest in REMIC
I.
(ii) The Trustee, concurrently with the execution and delivery
hereof, does hereby transfer, assign, set over and otherwise convey in trust to
the Trustee without recourse all the right, title and interest in and to the
REMIC I Regular Interests (which are uncertificated) and the Class R
Certificates (in respect of the Class R-I Interest). The Trustee acknowledges
receipt of the REMIC I Regular Interests and declares that it holds and shall
hold the same in trust for the exclusive use and benefit of the Holders of the
REMIC II Regular Interests and the Class R Certificates (in respect of the Class
R-II Interest). The interests evidenced by the Class R-II Interest, together
with the REMIC II Regular Interests, constitute the entire beneficial ownership
interest in REMIC II.
(iii) The Trustee, concurrently with the execution and delivery
hereof, does hereby transfer, assign, set over and otherwise convey in trust to
the Trustee without recourse all the right, title and interest in and to the
REMIC II Regular Interests (which are uncertificated) and the Class R
Certificates (in respect of the Class R-II Interest). The Trustee acknowledges
receipt of the REMIC II Regular Interests and declares that it holds and shall
hold the same in trust for the exclusive use and benefit of the Holders of the
REMIC III Regular Interests and the Class R Certificates (in respect of the
Class R-III Interest). The interests evidenced by the Class R-III Interest,
together with the REMIC III Regular Interests, constitute the entire beneficial
ownership interest in REMIC III.
(iv) The Trustee, concurrently with the execution and delivery
hereof, does hereby transfer, assign, set over and otherwise convey in trust to
the Trustee without recourse all the right, title and interest in and to the
REMIC III Regular Interests (which are uncertificated) for the benefit of the
Holders of the Regular Certificates, the Class IO Interest and the Class R
Certificates (in respect of the Class R-IV Interest). The Trustee acknowledges
receipt of the REMIC III Regular Interests and declares that it holds and shall
hold the same in trust for the exclusive use and benefit of the Holders of the
Regular Certificates, the Class IO Interest and the Class R Certificates (in
respect of the Class R-IV Interest). The interests evidenced by the Class R-IV
Interest, together with the Regular Certificates and the Class IO Interest,
constitute the entire beneficial ownership interest in REMIC IV.
(C) ISSUANCE OF CLASS R CERTIFICATES.
The Trustee acknowledges the assignment to it of the REMIC I
Regular Interests and, concurrently therewith and in exchange therefor, pursuant
to the written request of the Depositor executed by an officer of the Depositor
or the Trustee has executed, authenticated and delivered to or upon the order of
the Depositor, the Class R Certificates in authorized denominations. The
interests evidenced by the Class R Certificates, together with the REMIC I
Regular Interests, the REMIC II Regular Interests, the REMIC III Regular
Interests and the REMIC IV Regular Interests, constitute the entire beneficial
ownership interest in REMIC I, REMIC II, REMIC III and REMIC IV.
Section 2.09 COVENANTS OF THE MASTER SERVICER.
The Master Servicer hereby covenants to the Depositor and the Trustee
as follows:
(a) the Master Servicer shall comply in the performance of its
obligations under this Agreement with all reasonable rules and requirements of
the insurer under each Required Insurance Policy; and
(b) no written information, certificate of an officer, statement
furnished in writing or written report delivered to the Depositor, any affiliate
of the Depositor, the NIM Insurer, the Trustee or the Supplemental Interest
Trust Administrator and prepared by the Master Servicer pursuant to this
Agreement will contain any untrue statement of a material fact or omit to state
a material fact necessary to make such information, certificate, statement, or
report not misleading.
ARTICLE III
ADMINISTRATION AND SERVICING OF MORTGAGE LOANS
Section 3.01 MASTER SERVICER TO SERVICE MORTGAGE LOANS.
For and on behalf of the Certificateholders, the Master Servicer shall
service and administer the Mortgage Loans in accordance with this Agreement and
the Servicing Standard.
The Master Servicer shall not make or permit any modification, waiver,
or amendment of any term of any Mortgage Loan that would cause the Trust Fund to
fail to qualify as a REMIC or result in the imposition of any tax under Section
860F(a) or Section 860G(d) of the Code.
Without limiting the generality of the foregoing, the Master Servicer,
in its own name or in the name of the Depositor and the Trustee, is hereby
authorized and empowered by the Depositor and the Trustee, when the Master
Servicer believes it appropriate in its reasonable judgment, to execute and
deliver, on behalf of the Trustee, the Depositor, the Certificateholders, or any
of them, any instruments of satisfaction or cancellation, or of partial or full
release or discharge, and all other comparable instruments, with respect to the
Mortgage Loans, and with respect to the Mortgaged Properties held for the
benefit of the Certificateholders. The Master Servicer shall prepare and deliver
to the Depositor or the Trustee any documents requiring execution and delivery
by either or both of them appropriate to enable the Master Servicer to service
and administer the Mortgage Loans to the extent that the Master Servicer is not
permitted to execute and deliver such documents pursuant to the preceding
sentence. Upon receipt of the documents, the Depositor or the Trustee shall
execute the documents and deliver them to the Master Servicer.
The Master Servicer further is authorized and empowered by the Trustee,
on behalf of the Certificateholders and the Trustee, in its own name or in the
name of the Subservicer, when the Master Servicer or the Subservicer, as the
case may be, believes it appropriate in its best judgment to register any
Mortgage Loan on the MERS(R) System, or cause the removal from the registration
of any Mortgage Loan on the MERS(R) System, to execute and deliver, on behalf of
the Trustee and the Certificateholders or any of them, any and all instruments
of assignment and other comparable instruments with respect to such assignment
or re-recording of a Mortgage in the name of MERS, solely as nominee for the
Trustee and its successors and assigns.
In accordance with and to the extent of the Servicing Standard, the
Master Servicer shall advance funds necessary to effect the payment of taxes and
assessments on the Mortgaged Properties, which advances shall be reimbursable in
the first instance from related collections from the Mortgagors pursuant to
Section 3.07, and further as provided in Section 3.09. The costs incurred by the
Master Servicer in effecting the timely payments of taxes and assessments on the
Mortgaged Properties and related insurance premiums shall not, for the purpose
of calculating monthly distributions to the Certificateholders, be added to the
Stated Principal Balances of the related Mortgage Loans, notwithstanding that
the Mortgage Loans so permit.
Section 3.02 SUBSERVICING; ENFORCEMENT OF THE OBLIGATIONS OF
SUBSERVICERS.
(a) The Master Servicer may arrange for the subservicing of any
Mortgage Loan by a subservicer (a "SUBSERVICER") pursuant to a subservicing
agreement reasonably acceptable to the NIM Insurer. The Master Servicer may not
enter into any subservicing agreement if as a result any Class of the
Certificates would be downgraded or have their rating withdrawn by any Rating
Agency. The subservicing arrangement and the related subservicing agreement must
provide for the servicing of the Mortgage Loans in a manner consistent with the
servicing arrangements contemplated hereunder. Unless the context otherwise
requires, references in this Agreement to actions taken or to be taken by the
Master Servicer in servicing the Mortgage Loans include actions taken or to be
taken by a Subservicer on behalf of the Master Servicer. Notwithstanding
anything in any subservicing agreement or this Agreement relating to agreements
or arrangements between the Master Servicer and a Subservicer or references to
actions taken through a Subservicer or otherwise, the Master Servicer shall
remain obligated and liable to the Trustee and Certificateholders for the
servicing and administration of the Mortgage Loans in accordance with this
Agreement without diminution of its obligation or liability by virtue of the
subservicing agreements or arrangements or by virtue of indemnification from the
Subservicer and to the same extent and under the same terms as if the Master
Servicer alone were servicing and administering the Mortgage Loans. All actions
of each Subservicer performed pursuant to the related subservicing agreement
shall be performed as agent of the Master Servicer with the same effect as if
performed directly by the Master Servicer. The Master Servicer, with the consent
of the NIM Insurer, may terminate any subservicing agreement and the rights and
obligations of any Subservicer pursuant to any subservicing agreement in
accordance with the terms of such subservicing agreement.
(b) For purposes of this Agreement, the Master Servicer shall be
deemed to have received any collections, recoveries or payments with respect to
the Mortgage Loans that are received by the Subservicer regardless of whether
the payments are remitted by the Subservicer to the Master Servicer.
Section 3.03 [RESERVED].
Section 3.04 NO CONTRACTUAL RELATIONSHIP BETWEEN SUBSERVICERS
AND THE TRUSTEE.
Any subservicing arrangement that may be entered into and any other
transactions or services relating to the Mortgage Loans involving a Subservicer
in its capacity as such shall be deemed to be solely between the Subservicer and
the Master Servicer alone, and the Trustee, the NIM Insurer, and
Certificateholders shall not be deemed parties thereto and shall have no claims,
rights, obligations, duties, or liabilities with respect to the Subservicer in
its capacity as such except as stated in Section 3.05.
Section 3.05 TRUSTEE TO ACT AS MASTER SERVICER.
If the Master Servicer for any reason is no longer the Master Servicer
hereunder (including because of an Event of Default), the Trustee or its
successor shall thereupon assume all of the rights and obligations of the Master
Servicer hereunder arising thereafter, except that the Trustee shall not be:
(i) liable for losses of the Master Servicer pursuant to Section
3.10 or any acts or omissions of the predecessor Master Servicer hereunder,
(ii) obligated to make Advances if it is prohibited from doing so
by applicable law,
(iii) obligated to effectuate repurchases or substitutions of
Mortgage Loans hereunder, including repurchases or substitutions pursuant to
Section 2.01, 2.02, 2.03 or 2.05,
(iv) responsible for expenses of the Master Servicer pursuant to
Section 2.03, or
(v) deemed to have made any representations and warranties of the
Master Servicer hereunder. Any assumption shall be subject to Section 7.02.
Every subservicing agreement entered into by the Master Servicer shall
contain a provision giving the successor Master Servicer the option to terminate
the agreement if a successor Master Servicer is appointed.
If the Master Servicer is no longer the Master Servicer for any reason
(including because of any Event of Default), the Trustee (or any other successor
Master Servicer) may, at its option, succeed to any rights and obligations of
the Master Servicer under any subservicing agreement in accordance with its
terms. The Trustee (or any other successor Master Servicer) shall not incur any
liability or have any obligations in its capacity as successor Master Servicer
under a subservicing agreement arising before the date of succession unless it
expressly elects to succeed to the rights and obligations of the Master Servicer
thereunder; and the Master Servicer shall not thereby be relieved of any
liability or obligations under the subservicing agreement arising before the
date of succession.
The Master Servicer shall, upon request of the Trustee, but at the
expense of the Master Servicer, deliver to the assuming party all documents and
records relating to each subservicing agreement and the Mortgage Loans then
being serviced thereunder and an accounting of collected amounts held by it and
otherwise use its best efforts to effect the orderly and efficient transfer of
the subservicing agreement to the assuming party.
Notwithstanding anything else in this Agreement to the contrary, in no
event shall the Trustee be liable for any servicing fee or for any differential
in the amount of the servicing fee paid under this Agreement and the amount
necessary to induce any successor Master Servicer to act as successor Master
Servicer under this Agreement and the transactions provided for in this
Agreement.
Section 3.06 COLLECTION OF MORTGAGE LOAN PAYMENTS; SERVICING
ACCOUNTS; COLLECTION ACCOUNT; CERTIFICATE
ACCOUNT; DISTRIBUTION ACCOUNT; EXCESS RESERVE
FUND ACCOUNT.
(a) In accordance with and to the extent of the Servicing
Standard, the Master Servicer shall make reasonable efforts in accordance with
the customary and usual standards of practice of prudent mortgage servicers to
collect all payments called for under the Mortgage Loans to the extent the
procedures are consistent with this Agreement and any related Required Insurance
Policy. Consistent with the foregoing, the Master Servicer may in its discretion
(i) waive any late payment charge or, subject to Section 3.20, any Prepayment
Charge or penalty interest in connection with the prepayment of a Mortgage Loan,
(ii) modify any delinquent or defaulted Mortgage Loan (including modifications
that change the Mortgage Rate, forgive the payment of principal or interest or
extend the final maturity date of that Mortgage Loan); provided, that such
modification is consistent with the Servicing Standard and if in the Master
Servicer's determination such modification is not materially adverse to the
interests of the Certificateholders (taking into account any estimated loss that
might result absent such action) and is expected to minimize the loss of such
Mortgage Loan; provided, however, that the Master Servicer shall not initiate
new lending to such Mortgagor through the Trust, and (iii) extend the due dates
for payments due on a Mortgage Note for a period not greater than 125 days.
However, the Master Servicer cannot extend the maturity of any Mortgage Loan
past the date on which the final payment is due on the latest maturing Mortgage
Loan in the applicable Loan Group as of the Cut-off Date. In the event of any
such arrangement, the Master Servicer shall make Advances on the related
Mortgage Loan in accordance with Section 4.01 during the scheduled period in
accordance with the amortization schedule of the Mortgage Loan without
modification thereof because of the arrangements. In addition, the NIM Insurer's
prior written consent shall be required for any modification, waiver, or
amendment if the amendment of the aggregate number of outstanding Mortgage Loans
that have been modified, waived, and amended exceeds 5% of the aggregate number
of Mortgage Loans. The Master Servicer shall not be required to institute or
join in litigation with respect to collection of any payment (whether under a
Mortgage, Mortgage Note, or otherwise or against any public or governmental
authority with respect to a taking or condemnation) if it reasonably believes
that enforcing the provision of the Mortgage or other instrument pursuant to
which the payment is required is prohibited by applicable law. The Master
Servicer shall not sell any delinquent or defaulted Mortgage Loan.
(b) The Master Servicer shall establish and maintain (or, if a
Mortgage Loan is subserviced by another Person, cause the related Subservicer to
establish and maintain) one or more Servicing Accounts into which the Master
Servicer shall deposit on a daily basis within one (1) Business Day of receipt,
the following payments and collections received by it or remitted by any
Subservicer in respect of Mortgage Loans after the Cut-off Date (other than in
respect of principal and interest due on the Mortgage Loans by the Cut-off
Date):
(i) all payments on account of principal on the Mortgage
Loans, including Principal Prepayments;
(ii) all payments on account of interest on the Mortgage
Loans and, in cases where the Master Servicer maintains the Servicing
Account, the related Master Servicing Fee; and
(iii) all Insurance Proceeds, Liquidation Proceeds and
Subsequent Recoveries, other than proceeds to be applied to the
restoration or repair of the Mortgaged Property or released to the
Mortgagor in accordance with the Master Servicer's normal servicing
procedures.
By the Determination Date in each calendar month, the Master Servicer
shall (a) withdraw from the Servicing Account all amounts on deposit therein
pursuant to clauses (i) and (ii) above (other than amounts attributable to a
Principal Prepayment in Full) and (b) deposit such amounts in the Collection
Account. By the Business Day in each calendar month following the deposit in the
Servicing Account of amounts on deposit therein pursuant to clause (iii) above
or pursuant to any Principal Prepayment in Full, the Master Servicer shall (a)
withdraw such amounts from the Servicing Account and (b) deposit such amounts in
the Collection Account.
(c) The Master Servicer shall establish and maintain a segregated
Collection Account into which the Master Servicer shall deposit, as and when
required by paragraph (b) of this Section 3.06, all amounts required to be
deposited into the Collection Account pursuant to that paragraph.
(d) The Master Servicer shall establish and maintain a segregated
Certificate Account into which the Master Servicer shall deposit on a daily
basis (i) within one (1) Business Day of deposit in the Collection Account (in
the case of items (i) through (iii) below) and (2) within one (1) Business Day
of receipt (in the case of all other items), except as otherwise specified
herein, the following payments and collections received by it or remitted by any
Subservicer in respect of Mortgage Loans after the Cut-off Date (other than in
respect of principal and interest due on the Mortgage Loans by the Cut-off Date)
and the following amounts required to be deposited hereunder:
(i) all payments on account of principal on the Mortgage
Loans, including Principal Prepayments;
(ii) all payments on account of interest on the Mortgage
Loans, net of the related Master Servicing Fee;
(iii) all Insurance Proceeds, Subsequent Recoveries and
Liquidation Proceeds, other than proceeds to be applied to the
restoration or repair of the Mortgaged Property or released to the
Mortgagor in accordance with the Master Servicer's normal servicing
procedures;
(iv) [RESERVED];
(v) any amounts required to be deposited by the Master
Servicer pursuant to Sections 3.12 and 3.14;
(vi) all Purchase Prices from the Master Servicer or
Seller and all Substitution Adjustment Amounts;
(vii) all Advances made by the Master Servicer pursuant to
Section 4.01;
(viii) any other amounts required to be deposited hereunder;
and
(ix) all Prepayment Charges collected.
In addition, with respect to any Mortgage Loan that is subject to a
buydown agreement, on each Due Date for the Mortgage Loan, in addition to the
monthly payment remitted by the related Mortgagor, the Master Servicer shall
cause funds to be deposited into the Certificate Account in an amount required
to cause an amount of interest to be paid with respect to the Mortgage Loan
equal to the amount of interest that has accrued on the Mortgage Loan from the
preceding Due Date at the Mortgage Rate net of the Master Servicing Fee on that
date.
The foregoing requirements for remittance by the Master Servicer shall
be exclusive. Without limiting the generality of the foregoing, payments in the
nature of late payment charges or assumption fees, if collected, need not be
remitted by the Master Servicer. If the Master Servicer remits any amount not
required to be remitted, it may at any time withdraw that amount from the
Certificate Account, any provision herein to the contrary notwithstanding. The
withdrawal or direction may be accomplished by delivering written notice of it
to the Trustee or any other institution maintaining the Certificate Account that
describes the amounts deposited in error in the Certificate Account. The Master
Servicer shall maintain adequate records with respect to all withdrawals made
pursuant to this Section 3.06. All funds deposited in the Certificate Account
shall be held in trust for the Certificateholders until withdrawn in accordance
with Section 3.09.
The Trustee shall establish and maintain the Excess Reserve Fund
Account, on behalf of the Class C Certificateholder, to secure its limited
recourse obligation to pay to the other Certificateholders Net WAC Cap Carry
Forward Amounts.
On each Distribution Date, the Trustee shall deposit the amount of any
Net WAC Cap Payment for that date into the Excess Reserve Fund Account.
The Trustee shall invest amounts held in the Excess Reserve Fund
Account only in Permitted Investments, which shall mature not later than the
Business Day preceding the next Distribution Date (except that if such Permitted
Investment is an obligation of the institution that maintains such account, then
such Permitted Investment shall mature not later than the next Distribution
Date) and, in each case, shall not be sold or disposed of before its maturity.
The Master Servicer shall direct the Trustee in writing with respect to
investment of amounts in the Excess Reserve Fund Account.
On each Distribution Date on which a Net WAC Cap Carry Forward Amount
exists for any Class of Certificates, the Trustee shall withdraw from the Excess
Reserve Fund Account amounts necessary to pay to the Class of Certificates the
Net WAC Cap Carry Forward Amount. Such payments shall be allocated to those
Classes as provided in Section 4.02(IV). Any Net WAC Cap Carry Forward Amounts
paid by the Trustee to the Certificateholders shall be accounted for by the
Trustee as amounts paid to the Holder of the Class C Certificate. In addition,
the Trustee shall account for the Certificateholders' rights to receive payments
of Net WAC Cap Carry Forward Amounts as rights in a limited recourse interest
rate cap contract written by the Class C Certificateholder in favor of the other
Certificateholders.
The Trustee shall account for the Excess Reserve Fund Account as an
outside reserve fund within the meaning of Treasury Regulation Section
1.860G-2(h) and not an asset of any REMIC created pursuant to this Agreement.
The owner of the Excess Reserve Fund Account is the Class C Certificateholder.
The Trustee shall treat amounts transferred by REMIC IV to the Excess Reserve
Fund Account as distributions to the Class C Certificateholder (and from the
Class C Certificateholder to the Excess Reserve Fund Account), other than
amounts paid to the Excess Reserve Fund Account by the Cap Contract, for all
federal income tax purposes. Accordingly, each Class of Certificates, other than
the Class C Certificate and Class P Certificate, will comprise two components -
a REMIC Regular Interest and an interest in a cap contract. The Trustee shall
allocate the issue price for a Class of Certificates between two components for
purposes of determining the issue price of the REMIC Regular Interest component.
The value of the right to receive payments from the Excess Reserve Fund Account
will be a nominal amount.
Notwithstanding any provision contained in this Agreement, the Trustee
shall not be required to make any payments from the Excess Reserve Fund Account
except as expressly stated in this Section 3.06(d).
(e) [RESERVED].
(f) The Trustee shall establish and maintain the Distribution
Account on behalf of the Certificateholders. The Trustee shall, promptly upon
receipt, deposit in the Distribution Account and retain therein the following:
(i) the aggregate amount remitted by the Master Servicer
to the Trustee pursuant to Section 3.09(a);
(ii) any amount deposited by the Master Servicer pursuant
to Section 3.06(g) in connection with any losses on Permitted
Investments; and
(iii) any other amounts deposited hereunder that are
required to be deposited in the Distribution Account.
If the Master Servicer remits any amount not required to be remitted,
it may at any time direct the Trustee in writing to withdraw that amount from
the Distribution Account, any provision herein to the contrary notwithstanding.
The direction may be accomplished by delivering an Officer's Certificate to the
Trustee that describes the amounts deposited in error in the Distribution
Account. All funds deposited in the Distribution Account shall be held by the
Trustee in trust for the Certificateholders until disbursed in accordance with
this Agreement or withdrawn in accordance with Section 3.09. In no event shall
the Trustee incur liability for withdrawals from the Distribution Account at the
direction of the Master Servicer.
(g) Each institution at which the Certificate Account is
maintained shall invest the funds therein as directed in writing by the Master
Servicer in Permitted Investments, which shall mature not later than the second
Business Day preceding the related Distribution Account Deposit Date (except
that if the Permitted Investment is an obligation of the institution that
maintains the account, then the Permitted Investment shall mature not later than
the Business Day preceding the Distribution Account Deposit Date) and shall not
be sold or disposed of before its maturity. All Permitted Investments shall be
made in the name of the Trustee, for the benefit of the Certificateholders. All
income realized from any investment of funds on deposit in the Certificate
Account shall be for the benefit of the Master Servicer as servicing
compensation and shall be remitted to it monthly as provided herein. The amount
of any realized losses on Permitted Investments in the Certificate Account shall
promptly be deposited by the Master Servicer in the Certificate Account. The
Trustee shall not be liable for the amount of any loss incurred in respect of
any investment or lack of investment of funds held in the Certificate Account
and made in accordance with this Section 3.06.
(h) [RESERVED].
(i) The Master Servicer shall notify the Trustee, the
Seller, each Rating Agency, and the Depositor of any proposed change of
the location of the Certificate Account, the Collection Account, the
Excess Reserve Fund Account or the Distribution Account not later than
30 days and not more than 45 days before any change thereof.
Section 3.07 COLLECTION OF TAXES, ASSESSMENTS, AND SIMILAR
ITEMS ESCROW ACCOUNTS.
(a) To the extent required by the related Mortgage Note and not
violative of current law, the Master Servicer shall establish and maintain one
or more accounts (each, an "ESCROW ACCOUNT") and deposit and retain therein all
collections from the Mortgagors (or Servicing advances) for the payment of
taxes, assessments, hazard insurance premiums or comparable items for the
account of the Mortgagors. Nothing herein shall require the Master Servicer to
compel a Mortgagor to establish an Escrow Account in violation of applicable
law.
(b) Withdrawals of amounts so collected from the Escrow Accounts
may be made only to effect timely payment of taxes, assessments, hazard
insurance premiums, condominium or PUD association dues, or comparable items, to
reimburse (without duplication) the Master Servicer out of related collections
for any payments made pursuant to Sections 3.01 (with respect to taxes and
assessments and insurance premiums) and 3.10 (with respect to hazard insurance),
to refund to any Mortgagors any sums determined to be overages, to pay interest,
if required by law or the related Mortgage or Mortgage Note, to Mortgagors on
balances in the Escrow Account or to clear and terminate the Escrow Account at
the termination of this Agreement in accordance with Section 9.01. The Escrow
Accounts shall not be a part of the Trust Fund.
(c) The Master Servicer shall advance any payments referred to in
Section 3.07(a) that are not timely paid by the Mortgagors on the date when the
tax, premium or other cost for which such payment is intended is due, but the
Master Servicer shall be required so to advance only to the extent that such
advances, in the good faith judgment of the Master Servicer, will be recoverable
by the Master Servicer out of Insurance Proceeds, Liquidation Proceeds, or
otherwise.
Section 3.08 ACCESS TO CERTAIN DOCUMENTATION AND INFORMATION
REGARDING THE MORTGAGE LOANS.
The Master Servicer shall afford the Depositor, the NIM Insurer, the
Trustee and the Supplemental Interest Trust Administrator reasonable access to
all records and documentation regarding the Mortgage Loans and all accounts,
insurance information, and other matters relating to this Agreement, such access
being afforded without charge, but only upon reasonable request and during
normal business hours at the office designated by the Master Servicer.
Upon reasonable advance notice in writing, the Master Servicer will
provide to each Certificateholder or Certificate Owner that is a savings and
loan association, bank, or insurance company certain reports and reasonable
access to information and documentation regarding the Mortgage Loans sufficient
to permit the Certificateholder or Certificate Owner to comply with applicable
regulations of the OTS or other regulatory authorities with respect to
investment in the Certificates. The Master Servicer shall be entitled to be
reimbursed by each such Certificateholder or Certificate Owner for actual
expenses incurred by the Master Servicer in providing the reports and access.
Section 3.09 PERMITTED WITHDRAWALS FROM THE CERTIFICATE
ACCOUNT, THE DISTRIBUTION ACCOUNT, THE INTEREST
COVERAGE ACCOUNT AND THE EXCESS RESERVE FUND
ACCOUNT.
(a) The Master Servicer may (and, in the case of clause (ix)
below, shall) from time to time make withdrawals from the Certificate Account
for the following purposes:
(i) to pay to the Master Servicer or the related
Subservicer (to the extent not previously retained) the servicing
compensation to which it is entitled pursuant to Section 3.15, and to
pay to the Master Servicer, as additional master servicing
compensation, earnings on or investment income with respect to funds in
or credited to the Certificate Account;
(ii) to reimburse the Master Servicer for unreimbursed
Advances made by it, such right of reimbursement pursuant to this
subclause (ii) being limited to amounts received on the Mortgage Loans
in respect of which the Advance was made;
(iii) to reimburse the Master Servicer for any
Nonrecoverable Advance previously made;
(iv) to reimburse the Master Servicer for Insured Expenses
from the related Insurance Proceeds;
(v) to reimburse the Master Servicer for (a) unreimbursed
Servicing Advances, such right of reimbursement pursuant to this
sub-clause (a) made by it being limited to amounts received on the
Mortgage Loans in respect of which the Sevicing Advance was made that
represent late recoveries of the payments for which such advances were
made pursuant to Section 3.01, Section 3.07 or Section 3.10 and (b) for
unpaid Master Servicing Fees as provided in Section 3.12;
(vi) to pay to the purchaser, with respect to each
Mortgage Loan or property acquired in respect thereof that has been
purchased pursuant to Section 2.01, 2.02, 2.03 or 2.05, all amounts
received thereon after the date of such purchase;
(vii) to reimburse the Seller, the Master Servicer, the NIM
Insurer, or the Depositor for expenses incurred by any of them and
reimbursable pursuant to Section 6.03; (viii) to withdraw any amount
deposited in the Certificate Account and not required to be deposited
therein;
(ix) by the Distribution Account Deposit Date, to withdraw
(1) Available Funds and the Trustee Fee for the Distribution Date, to
the extent on deposit, and (2) the Prepayment Charges on deposit, and
remit such amount to the Trustee for deposit in the Distribution
Account; and
(x) to clear and terminate the Certificate Account upon
termination of this Agreement pursuant to Section 9.01.
The Master Servicer shall keep and maintain separate accounting, on a
Mortgage Loan by Mortgage Loan basis, to justify any withdrawal from the
Certificate Account pursuant to subclauses (i), (ii), (iv), (v), and (vi).
Before making any withdrawal from the Certificate Account pursuant to subclause
(iii), the Master Servicer shall deliver to the Trustee an Officer's Certificate
of a Servicing Officer indicating the amount of any previous Advance determined
by the Master Servicer to be a Nonrecoverable Advance and identifying the
related Mortgage Loans and their respective portions of the Nonrecoverable
Advance.
(b) The Trustee shall withdraw funds from the Distribution Account
for distributions to Certificateholders in the manner specified in this
Agreement (and to withhold from the amounts so withdrawn the amount of any taxes
that it is authorized to withhold pursuant to the last paragraph of Section
8.11). In addition, the Trustee may from time to time make withdrawals from the
Distribution Account for the following purposes:
(i) to pay to itself the Trustee Fee for the related
Distribution Date;
(ii) to pay to the Master Servicer as additional servicing
compensation earnings on or investment income with respect to funds in
the Distribution Account;
(iii) to withdraw and return to the Master Servicer any
amount deposited in the Distribution Account and not required to be
deposited therein;
(iv) to clear and terminate the Distribution Account upon
termination of the Agreement pursuant to Section 9.01; and
(v) to make distributions to the Supplemental Interest
Trust, in accordance with Section 4.05.
(c) On each Distribution Date, the Trustee shall make withdrawals
from the Excess Reserve Fund Account for deposit in the Distribution Account of
the amount required pursuant to Section 3.06(d). Each institution at which the
Excess Reserve Fund Account is maintained shall invest the funds therein as
directed in writing by the Master Servicer in Permitted Investments, which shall
mature not later than the second Business Day preceding the related Distribution
Account Deposit Date (except that if the Permitted Investment is an obligation
of the institution that maintains the account, then the Permitted Investment
shall mature not later than the Business Day preceding the Distribution Account
Deposit Date) and shall not be sold or disposed of before its maturity. All
Permitted Investments shall be made in the name of the Trustee, for the benefit
of the Certificateholders. All income realized from any investment of funds on
deposit in the Excess Reserve Fund Account shall be for the benefit of the
Master Servicer as servicing compensation and shall be remitted to it monthly as
provided herein. The amount of any realized losses on Permitted Investments in
the Excess Reserve Fund Account shall promptly be deposited by the Master
Servicer in the Excess Reserve Fund Account. On the earlier of (i) the
termination of this Agreement pursuant to Section 9.01 and (ii) the Distribution
Date on which all of the Certificates (other than the Class C Certificates) are
reduced to zero, any amount remaining on deposit in the Excess Reserve Fund
Account after giving effect to the requirements of this section shall be
withdrawn by the Trustee and paid to the Class C Certificateholders.
Section 3.10 MAINTENANCE OF HAZARD INSURANCE; MAINTENANCE OF
PRIMARY INSURANCE POLICIES.
(a) The Master Servicer shall maintain, for each Mortgage Loan,
hazard insurance with extended coverage in an amount that is at least equal to
the LESSER OF:
(i) the maximum insurable value of the improvements
securing the Mortgage Loan; AND
(ii) the GREATER OF (y) the outstanding principal balance
of the Mortgage Loan AND (z) an amount such that the proceeds of the
policy are sufficient to prevent the related Mortgagor or the mortgagee
from becoming a co-insurer.
Each policy of standard hazard insurance shall contain, or have an accompanying
endorsement that contains, a standard mortgagee clause. Any amounts collected
under the policies (other than the amounts to be applied to the restoration or
repair of the related Mortgaged Property or amounts released to the Mortgagor in
accordance with the Master Servicer's normal servicing procedures) shall be
deposited in the Certificate Account. Any cost incurred in maintaining any
insurance shall not, for the purpose of calculating monthly distributions to the
Certificateholders or remittances to the Trustee for their benefit, be added to
the principal balance of the Mortgage Loan, notwithstanding that the Mortgage
Loan so permits. Such costs shall be recoverable by the Master Servicer out of
late payments by the related Mortgagor or out of Liquidation Proceeds to the
extent permitted by Section 3.09. No earthquake or other additional insurance is
to be required of any Mortgagor or maintained on property acquired in respect of
a Mortgage other than pursuant to any applicable laws and regulations in force
that require additional insurance. If the Mortgaged Property is located at the
time of origination of the Mortgage Loan in a federally designated special flood
hazard area and the area is participating in the national flood insurance
program, the Master Servicer shall maintain flood insurance for the Mortgage
Loan. The flood insurance shall be in an amount equal to the LEAST OF (i) the
original principal balance of the related Mortgage Loan, (ii) the replacement
value of the improvements that are part of the Mortgaged Property AND (iii) the
maximum amount of flood insurance available for the related Mortgaged Property
under the national flood insurance program.
If the Master Servicer obtains and maintains a blanket policy insuring
against hazard losses on all of the Mortgage Loans, it shall have satisfied its
obligations in the first sentence of this Section 3.10. The policy may contain a
deductible clause on terms substantially equivalent to those commercially
available and maintained by comparable servicers. If the policy contains a
deductible clause and a policy complying with the first sentence of this Section
3.10 has not been maintained on the related Mortgaged Property, and if a loss
that would have been covered by the required policy occurs, the Master Servicer
shall deposit in the Certificate Account, without any right of reimbursement,
the amount not otherwise payable under the blanket policy because of the
deductible clause. In connection with its activities as Master Servicer of the
Mortgage Loans, the Master Servicer agrees to present, on behalf of itself, the
Depositor, and the Trustee for the benefit of the Certificateholders and the NIM
Insurer, claims under any blanket policy.
(b) The Master Servicer shall not take any action that would
result in non-coverage under any applicable Primary Insurance Policy of any loss
that, but for the actions of the Master Servicer, would have been covered
thereunder. The Master Servicer shall not cancel or refuse to renew any Primary
Insurance Policy that is in effect at the date of the initial issuance of the
Certificates and is required to be kept in force hereunder unless the
replacement Primary Insurance Policy for the canceled or non-renewed policy is
maintained with a Qualified Insurer. The Master Servicer need not maintain any
Primary Insurance Policy if maintaining the Primary Insurance Policy is
prohibited by applicable law. The Master Servicer agrees, to the extent
permitted by applicable law, to effect the timely payment of the premiums on
each Primary Insurance Policy, and any costs not otherwise recoverable shall be
recoverable by the Master Servicer from the related liquidation proceeds. The
Master Servicer shall maintain for as long as each relevant Mortgage Loan is
outstanding the mortgage insurance associated with the Mortgage Loans identified
on the Mortgage Loan Schedule as having lender acquired mortgage insurance, and
as to any other Mortgage Loans the Master Servicer need not maintain any Primary
Insurance Policy with respect to any Mortgage Loan with a Loan-to-Value Ratio
less than or equal to 80% as of any date of determination or, based on a new
appraisal, the principal balance of the Mortgage Loan represents 80% or less of
the new Appraised Value.
In connection with its activities as Master Servicer of the Mortgage
Loans, the Master Servicer agrees to present, on behalf of itself, the Trustee,
the NIM Insurer, and the Certificateholders, claims to the insurer under any
Primary Insurance Policies and, in this regard, to take any reasonable action in
accordance with the Servicing Standard necessary to permit recovery under any
Primary Insurance Policies respecting defaulted Mortgage Loans. Any amounts
collected by the Master Servicer under any Primary Insurance Policies shall be
deposited in the Certificate Account or the Collection Account (as applicable).
Section 3.11 ENFORCEMENT OF DUE-ON-SALE CLAUSES; ASSUMPTION
AGREEMENTS.
(a) Except as otherwise provided in this Section 3.11, when any
property subject to a Mortgage has been conveyed by the Mortgagor, the Master
Servicer shall to the extent that it has knowledge of the conveyance and in
accordance with the Servicing Standard, enforce any due-on-sale clause contained
in any Mortgage Note or Mortgage, to the extent permitted under applicable law
and governmental regulations, but only to the extent that enforcement will not
adversely affect or jeopardize coverage under any Required Insurance Policy.
Notwithstanding the foregoing, the Master Servicer is not required to exercise
these rights with respect to a Mortgage Loan if the Person to whom the related
Mortgaged Property has been conveyed or is proposed to be conveyed satisfies the
conditions contained in the Mortgage Note and Mortgage related thereto and the
consent of the mortgagee under the Mortgage Note or Mortgage is not otherwise so
required under the Mortgage Note or Mortgage as a condition to the transfer.
If (i) the Master Servicer is prohibited by law from enforcing any
due-on-sale clause, (ii) coverage under any Required Insurance Policy would be
adversely affected, (iii) the Mortgage Note does not include a due-on-sale
clause or (iv) nonenforcement is otherwise permitted hereunder, the Master
Servicer is authorized, subject to Section 3.11(b), to take or enter into an
assumption and modification agreement from or with the person to whom the
property has been or is about to be conveyed, pursuant to which the person
becomes liable under the Mortgage Note and, unless prohibited by applicable
state law, the Mortgagor remains liable thereon. The Mortgage Loan must continue
to be covered (if so covered before the Master Servicer enters into the
agreement) by the applicable Required Insurance Policies.
The Master Servicer, subject to Section 3.11(b), is also authorized
with the prior approval of the insurers under any Required Insurance Policies to
enter into a substitution of liability agreement with the Person, pursuant to
which the original Mortgagor is released from liability and the Person is
substituted as Mortgagor and becomes liable under the Mortgage Note.
Notwithstanding the foregoing, the Master Servicer shall not be deemed to be in
default under this Section 3.11 because of any transfer or assumption that the
Master Servicer reasonably believes it is restricted by law from preventing, for
any reason whatsoever.
(b) Subject to the Master Servicer's duty to enforce any
due-on-sale clause to the extent provided in Section 3.11(a), in any case in
which a Mortgaged Property has been conveyed to a Person by a Mortgagor, and the
Person is to enter into an assumption agreement or modification agreement or
supplement to the Mortgage Note or Mortgage that requires the signature of the
Trustee, or if an instrument of release signed by the Trustee is required
releasing the Mortgagor from liability on the Mortgage Loan, the Master Servicer
shall prepare and deliver to the Trustee for signature and shall direct the
Trustee, in writing, to execute the assumption agreement with the Person to whom
the Mortgaged Property is to be conveyed, and the modification agreement or
supplement to the Mortgage Note or Mortgage or other instruments appropriate to
carry out the terms of the Mortgage Note or Mortgage or otherwise to comply with
any applicable laws regarding assumptions or the transfer of the Mortgaged
Property to the Person. In connection with any such assumption, no material term
of the Mortgage Note may be changed.
In addition, the substitute Mortgagor and the Mortgaged Property must
be acceptable to the Master Servicer in accordance with its underwriting
standards as then in effect. Together with each substitution, assumption, or
other agreement or instrument delivered to the Trustee for execution by it, the
Master Servicer shall deliver an Officer's Certificate signed by a Servicing
Officer stating that the requirements of this subsection have been met in
connection therewith. The Master Servicer shall notify the Trustee that any
substitution or assumption agreement has been completed by forwarding to the
Trustee the original of the substitution or assumption agreement, which in the
case of the original shall be added to the related Mortgage File and shall, for
all purposes, be considered a part of the Mortgage File to the same extent as
all other documents and instruments constituting a part thereof. The Master
Servicer will retain any fee collected by it for entering into an assumption or
substitution of liability agreement as additional master servicing compensation.
Section 3.12 REALIZATION UPON DEFAULTED MORTGAGE LOANS;
REPURCHASE OF CERTAIN MORTGAGE LOANS.
(a) The Master Servicer shall use reasonable efforts in accordance
with the Servicing Standard to foreclose on or otherwise comparably convert the
ownership of Mortgaged Properties in respect of which the related Mortgage Loans
have come into and continue in default and as to which no satisfactory
arrangements can be made for collection of delinquent payments. In connection
with the foreclosure or other conversion, the Master Servicer shall follow the
Servicing Standard and shall follow the requirements of the insurer under any
Required Insurance Policy.
Notwithstanding the foregoing, the Master Servicer shall not be
required to expend its own funds in connection with any foreclosure or towards
the restoration of any property unless it determines (i) that the restoration or
foreclosure will increase the proceeds of liquidation of the Mortgage Loan after
reimbursement to itself of restoration expenses and (ii) that restoration
expenses will be recoverable to it through Liquidation Proceeds (respecting
which it shall have priority for purposes of withdrawals from the Certificate
Account). The Master Servicer shall be responsible for all other costs and
expenses incurred by it in any foreclosure proceedings. The Master Servicer is
entitled to reimbursement thereof from the liquidation proceeds with respect to
the related Mortgaged Property, as provided in the definition of Liquidation
Proceeds. If the Master Servicer has knowledge that a Mortgaged Property that
the Master Servicer is contemplating acquiring in foreclosure or by deed in lieu
of foreclosure is located within one mile of any site listed in the Expenditure
Plan for the Hazardous Substance Clean Up Bond Act of 1984 or other site with
environmental or hazardous waste risks known to the Master Servicer, the Master
Servicer will, before acquiring the Mortgaged Property, consider the risks and
only take action in accordance with its established environmental review
procedures. The Master Servicer shall not foreclose any Mortgaged Property or
accept a deed in lieu of foreclosure for any Mortgaged Property without the
consent of the NIM Insurer if the Master Servicer has actual knowledge or notice
that the Mortgaged Property contains material hazardous wastes or substances
subject to the Hazardous Substance Clean Up Bond Act of 1984.
With respect to any REO Property, the deed or certificate of sale shall
be taken in the name of the Trustee for the benefit of the Certificateholders,
or its nominee, on behalf of the Certificateholders. The Trustee's name shall be
placed on the title to the REO Property solely as the Trustee hereunder and not
in its individual capacity. The Master Servicer shall ensure that the title to
the REO Property references this Agreement and the Trustee's capacity hereunder.
Pursuant to its efforts to sell the REO Property, the Master Servicer shall
either itself or through an agent selected by the Master Servicer protect and
conserve the REO Property in accordance with the Servicing Standard as the
Master Servicer deems to be in the best interest of the Certificateholders for
the period before the sale of the REO Property.
The Master Servicer shall perform the tax reporting and withholding
required by Sections 1445 and 6050J of the Code with respect to foreclosures and
abandonments, the tax reporting required by Section 6050H of the Code with
respect to the receipt of mortgage interest from individuals and, if required by
Section 6050P of the Code with respect to the cancellation of indebtedness by
certain financial entities, the preparation of any required tax and information
returns, in the form required, and delivery of the same to the Trustee for
filing.
If the Trust Fund acquires any Mortgaged Property as aforesaid or
otherwise in connection with a default or imminent default on a Mortgage Loan,
the REO Property shall only be held temporarily, shall be actively marketed for
sale, and the Master Servicer shall dispose of the Mortgaged Property as soon as
practicable, and in any case before the end of the third calendar year following
the calendar year in which the Trust Fund acquires the property. Notwithstanding
any other provision of this Agreement, no Mortgaged Property acquired by the
Trust Fund shall be rented (or allowed to continue to be rented) or otherwise
used for the production of income by or on behalf of the Trust Fund.
The decision of the Master Servicer to foreclose on a defaulted
Mortgage Loan shall be subject to a determination by the Master Servicer that
the proceeds of the foreclosure would exceed the costs and expenses of bringing
a foreclosure proceeding. The proceeds received from the maintenance of any REO
Properties, net of reimbursement to the Master Servicer for expenses incurred
(including any property or other taxes) in connection with maintenance of the
REO Properties and net of unreimbursed Master Servicing Fees, Advances and
Servicing Advances, shall be applied to the payment of principal of and interest
on the related defaulted Mortgage Loans (with interest accruing as though the
Mortgage Loans were still current and adjustments, if applicable, to the
Mortgage Rate were being made in accordance with the Mortgage Note) and all such
proceeds shall be deemed, for all purposes in this Agreement, to be payments on
account of principal and interest on the related Mortgage Notes and shall be
deposited into the Certificate Account. To the extent the proceeds received
during any calendar month exceed the amount attributable to amortizing principal
and accrued interest at the related Mortgage Rate on the related Mortgage Loan
for the calendar month, the excess shall be considered to be a partial
prepayment of principal of the related Mortgage Loan.
The proceeds from any liquidation of a Mortgage Loan, as well as any
proceeds from an REO Property, will be applied in the following order of
priority:
FIRST, to reimburse the Master Servicer for any related
unreimbursed Servicing Advances or Master Servicing Fees or for any
unreimbursed Advances, as applicable;
SECOND, to reimburse the Certificate Account for any
Nonrecoverable Advances (or portions thereof) that were previously
withdrawn by the Master Servicer pursuant to Section 3.09(a)(ii) that
related to the Mortgage Loan;
THIRD, to accrued and unpaid interest (to the extent no
Advance has been made for such amount or an Advance has been
reimbursed) on the Mortgage Loan or related REO Property, at the
Adjusted Net Mortgage Rate through the Remittance Period preceding the
Distribution Date on which the amounts are required to be distributed;
and
FOURTH, as a recovery of principal of the Mortgage Loan. The
Master Servicer will retain any Excess Proceeds from the liquidation of
a Liquidated Mortgage Loan as additional servicing compensation
pursuant to Section 3.15.
(b) [RESERVED].
(c) The Master Servicer may agree to a modification of any
Mortgage Loan at the request of the related Mortgagor if (i) the modification is
in lieu of a refinancing and the Mortgage Rate on the relevant Mortgage Loan, as
modified, is approximately a prevailing market rate for newly-originated
mortgage loans having similar terms and (ii) the Master Servicer purchases the
relevant Mortgage Loan from the Trust Fund as described below. Upon the
agreement of the Master Servicer to modify a Mortgage Loan in accordance with
the preceding sentence, the Master Servicer shall purchase that Mortgage Loan
and all interest of the Trustee in that Mortgage Loan shall automatically be
deemed transferred and assigned to the Master Servicer and all benefits and
burdens of ownership thereof, including the right to accrued interest thereon
from the date of purchase and the risk of default thereon, shall pass to the
Master Servicer. The Master Servicer shall promptly deliver to the Trustee a
certification of a Servicing Officer to the effect that all requirements of the
first paragraph of this subsection (c) have been satisfied with respect to the
Mortgage Loan to be repurchased pursuant to this paragraph.
The Master Servicer shall deposit the Purchase Price for any Mortgage
Loan repurchased pursuant to this Section 3.12 in the Certificate Account
pursuant to Section 3.06 within one (1) Business Day after the purchase of the
Mortgage Loan. Upon receipt by the Trustee of written notification of any such
deposit signed by a Servicing Officer, the Trustee shall release to the Master
Servicer the related Mortgage File and shall execute and deliver such
instruments of transfer or assignment, in each case without recourse, as shall
be necessary to vest in the Master Servicer any Mortgage Loan previously
transferred and assigned pursuant hereto.
The Master Servicer covenants and agrees to indemnify the Trust Fund
against any liability for any taxes (including prohibited transaction taxes) and
any related interest, additions, and penalties imposed on the Trust Fund
established hereunder as a result of any modification of a Mortgage Loan
effected pursuant to this Section 3.12 or any purchase of a Mortgage Loan by the
Master Servicer in connection with a modification (but such obligation shall not
prevent the Master Servicer or any other appropriate Person from contesting any
such tax in appropriate proceedings and shall not prevent the Master Servicer
from withholding payment of such tax, if permitted by law, pending the outcome
of such proceedings). The Master Servicer shall have no right of reimbursement
for any amount paid pursuant to the foregoing indemnification, except to the
extent that the amount of any tax, interest, and penalties, together with
interest thereon, is refunded to the Trust Fund or the Master Servicer.
Section 3.13 TRUSTEE TO COOPERATE; RELEASE OF MORTGAGE FILES.
Upon the payment in full of any Mortgage Loan, or the receipt by the
Master Servicer of a notification that payment in full will be escrowed in a
manner customary for such purposes, the Master Servicer will immediately notify
the Trustee by delivering a "Request for Release" substantially in the form of
Exhibit N. Upon receipt of the request, the Trustee shall promptly release the
related Mortgage File to the Master Servicer, and the Trustee shall at the
Master Servicer's direction execute and deliver to the Master Servicer the
request for reconveyance, deed of reconveyance, or release or satisfaction of
mortgage or such instrument releasing the lien of the Mortgage in each case
provided by the Master Servicer, together with the Mortgage Note with written
evidence of cancellation thereon. Expenses incurred in connection with any
instrument of satisfaction or deed of reconveyance shall be chargeable to the
related Mortgagor.
From time to time and as shall be appropriate for the servicing or
foreclosure of any Mortgage Loan, including for such purpose collection under
any policy of flood insurance, any fidelity bond or errors or omissions policy,
or for the purposes of effecting a partial release of any Mortgaged Property
from the lien of the Mortgage or the making of any corrections to the Mortgage
Note or the Mortgage or any of the other documents included in the Mortgage
File, the Trustee shall, upon delivery to the Trustee of a Request for Release
in the form of Exhibit M signed by a Servicing Officer, release the Mortgage
File to the Master Servicer or its designee. Subject to the further limitations
stated below, the Master Servicer shall cause the Mortgage File or documents so
released to be returned to the Trustee when the need therefor by the Master
Servicer no longer exists, unless the Mortgage Loan is liquidated and the
proceeds thereof are deposited in the Certificate Account, in which case the
Master Servicer shall deliver to the Trustee a Request for Release in the form
of Exhibit N, signed by a Servicing Officer.
If the Master Servicer at any time seeks to initiate a foreclosure
proceeding in respect of any Mortgaged Property as authorized by this Agreement,
the Master Servicer shall deliver to the Trustee, for signature, as appropriate,
any court pleadings, requests for trustee's sale, or other documents necessary
to effectuate such foreclosure or any legal action brought to obtain judgment
against the Mortgagor on the Mortgage Note or the Mortgage or to obtain a
deficiency judgment or to enforce any other remedies or rights provided by the
Mortgage Note or the Mortgage or otherwise available at law or in equity.
Section 3.14 DOCUMENTS, RECORDS, AND FUNDS IN POSSESSION OF
THE MASTER SERVICER TO BE HELD FOR THE TRUSTEE.
The Master Servicer shall account fully to the Trustee and the NIM
Insurer for any funds it receives or otherwise collects as Liquidation Proceeds
or Insurance Proceeds in respect of any Mortgage Loan. All Mortgage Files and
funds collected or held by, or under the control of, the Master Servicer in
respect of any Mortgage Loans, whether from the collection of principal and
interest payments or from Liquidation Proceeds, including any funds on deposit
in the Certificate Account, shall be held by the Master Servicer for and on
behalf of the Trustee and shall be and remain the sole and exclusive property of
the Trustee, subject to the applicable provisions of this Agreement. The Master
Servicer also agrees that it shall not create, incur or subject any Mortgage
File or any funds that are deposited in the Certificate Account, the Collection
Account, the Distribution Account or any Escrow Account, or any funds that
otherwise are or may become due or payable to the Trustee for the benefit of the
Certificateholders, to any claim, lien, security interest, judgment, levy, writ
of attachment, or other encumbrance, or assert by legal action or otherwise any
claim or right of setoff against any Mortgage File or any funds collected on, or
in connection with, a Mortgage Loan, except, however, that the Master Servicer
shall be entitled to set off against and deduct from any such funds any amounts
that are properly due and payable to the Master Servicer under this Agreement.
Section 3.15 SERVICING COMPENSATION.
As compensation for its activities hereunder, the Master Servicer may
retain or withdraw from the Servicing Account, the Collection Account or the
Certificate Account the Master Servicing Fee for each Mortgage Loan for the
related Distribution Date. Notwithstanding the foregoing, the aggregate Master
Servicing Fee payable to the Master Servicer shall be reduced by the LESSER OF
the aggregate of the Prepayment Interest Shortfalls with respect to the
Distribution Date AND the aggregate Compensating Interest for the Distribution
Date.
Additional master servicing compensation in the form of Prepayment
Interest Excess, Excess Proceeds, assumption fees, late payment charges and all
income and gain net of any losses realized from Permitted Investments shall be
retained by the Master Servicer to the extent not required to be deposited in
the Certificate Account pursuant to Section 3.06. The Master Servicer shall be
required to pay all expenses incurred by it in connection with its servicing
activities hereunder (including the fees of any Subservicer, payment of any
premiums for hazard insurance, and any Primary Insurance Policy and maintenance
of the other forms of insurance coverage required by this Agreement) and shall
not be entitled to reimbursement therefor except as specifically provided in
this Agreement.
Section 3.16 ACCESS TO CERTAIN DOCUMENTATION.
The Master Servicer shall provide to the OTS and the FDIC and to
comparable regulatory authorities supervising the Certificateholders and
Certificate Owners and the examiners and supervisory agents of the OTS, the FDIC
and such other authorities, access to the documentation regarding the Mortgage
Loans required by applicable regulations of the OTS and the FDIC. Access shall
be afforded without charge, but only upon reasonable prior written request and
during normal business hours at the offices designated by the Master Servicer.
Nothing in this Section 3.16 shall limit the obligation of the Master Servicer
to observe any applicable law prohibiting disclosure of information regarding
the Mortgagors and the failure of the Master Servicer to provide access as
provided in this Section 3.16 as a result of such obligation shall not
constitute a breach of this Section 3.16.
Section 3.17 ANNUAL STATEMENT AS TO COMPLIANCE.
By March 1st of each year, commencing with 2006, the Master Servicer
shall deliver to the Depositor and the Trustee an Officer's Certificate signed
by two servicing officers stating, as to the signer thereof, that (i) a review
of the activities of the Master Servicer during the preceding calendar year and
of the performance of the Master Servicer under this Agreement has been made
under the officer's supervision, and (ii) to the best of the officer's
knowledge, based on the review, the Master Servicer has fulfilled all its
obligations under this Agreement throughout the year, or, if there has been a
default in the fulfillment of any obligation, specifying each default known to
the officer and its nature and status. The Trustee shall forward a copy of each
compliance statement to each Rating Agency.
Section 3.18 ANNUAL INDEPENDENT PUBLIC ACCOUNTANTS' SERVICING
STATEMENT; FINANCIAL STATEMENTS.
By March 1st of each year, commencing with 2006, the Master Servicer at
its expense shall cause a nationally or regionally recognized firm of
independent public accountants (who may also render other services to the Master
Servicer, the Seller or any affiliate thereof) that is a member of the American
Institute of Certified Public Accountants to furnish a statement to the Trustee
and the Depositor to the effect that the firm has examined certain documents and
records relating to the servicing of the Mortgage Loans under this Agreement or
of mortgage loans under pooling and servicing agreements substantially similar
to this Agreement (the statement to have attached to it a schedule of the
pooling and servicing agreements covered by it) and that, on the basis of its
examination, conducted substantially in compliance with the Audit Guide for
Audits of HUD Approved Nonsupervised Mortgagees, the Uniform Single Attestation
Program for Mortgage Bankers, or the Audit Program for Mortgages serviced for
FNMA and FHLMC, such servicing has been conducted in compliance with such
pooling and servicing agreements except for any significant exceptions or errors
in records that, in the opinion of the firm, the Audit Guide for Audits of HUD
Approved Nonsupervised Mortgagees, the Uniform Single Attestation Program for
Mortgage Bankers, or the Audit Program for Mortgages serviced for FNMA and FHLMC
requires it to report. In rendering the statement, the firm may rely, as to
matters relating to direct servicing of mortgage loans by the subservicers, upon
comparable statements for examinations conducted substantially in compliance
with the Audit Guide for Audits of HUD Approved Nonsupervised Mortgagees, the
Uniform Single Attestation Program for Mortgage Bankers, or the Audit Program
for Mortgages serviced for FNMA and FHLMC (rendered within one year of the
statement) of independent public accountants with respect to the related
Subservicer. The Master Servicer shall deliver the statement to the Trustee so
that the Trustee can provide copies of the statement to any Certificateholder or
Certificate Owner on request at the Master Servicer's expense.
Section 3.19 ERRORS AND OMISSIONS INSURANCE; FIDELITY BONDS.
The Master Servicer shall obtain and maintain in force (a) policies of
insurance covering errors and omissions in the performance of its obligations as
Master Servicer hereunder and (b) a fidelity bond covering its officers,
employees, and agents. Each policy and bond shall, together, comply with the
requirements from time to time of FNMA or FHLMC for persons performing servicing
for mortgage loans purchased by FNMA or FHLMC. The Master Servicer shall provide
the Trustee and the NIM Insurer, upon request, with a certificate of insurance
relating to the insurance policies and fidelity bond. If any policy or bond
ceases to be in effect, the Master Servicer shall obtain a comparable
replacement policy or bond from an insurer or issuer meeting the above
requirements as of the date of the replacement. The Master Servicer shall also
cause each Subservicer to maintain a policy of insurance covering errors and
omissions and fidelity bond that meets these requirements.
Section 3.20 NOTIFICATION OF ADJUSTMENTS.
On each Adjustment Date, the Master Servicer shall make interest rate
adjustments for each adjustable-rate Mortgage Loan in compliance with the
requirements of the related Mortgage and Mortgage Note and applicable
regulations. The Master Servicer shall execute and deliver the notices required
by each Mortgage and Mortgage Note and applicable regulations regarding such
interest rate adjustments. The Master Servicer also shall provide timely
notification to the Trustee of all applicable data and information regarding
such interest rate adjustments and the Master Servicer's methods of implementing
such interest rate adjustments. Upon the discovery by the Master Servicer or the
Trustee that the Master Servicer has failed to adjust or has incorrectly
adjusted a Mortgage Rate or a monthly payment pursuant to the terms of the
related Mortgage Note and Mortgage, the Master Servicer shall immediately
deposit in the Certificate Account from its own funds the amount of any loss
caused thereby without reimbursement therefor; provided, however, that the
Master Servicer shall not be liable with respect to any interest rate
adjustments made by any servicer prior to the Master Servicer.
Section 3.21 PREPAYMENT CHARGES.
(a) The Master Servicer shall not waive any part of any Prepayment
Charge unless the waiver relates to a default or a reasonably foreseeable
default, the collection of any Prepayment Charge would violate any relevant law
or regulation or the waiving of the Prepayment Charge would otherwise benefit
the Trust Fund and it is expected that the waiver would maximize recovery of
total proceeds taking into account the value of the Prepayment Charge and
related Mortgage Loan and doing so is standard and customary in servicing
similar Mortgage Loans (including any waiver of a Prepayment Charge in
connection with a refinancing of a Mortgage Loan that is related to a default or
a reasonably foreseeable default). The Master Servicer shall not waive a
Prepayment Charge in connection with a refinancing of a Mortgage Loan that is
not related to a default or a reasonably foreseeable default.
(b) The Seller represents and warrants to the Depositor and the
Trustee, as of the Closing Date, that the information in the Prepayment Charge
Schedule (including the attached prepayment charge summary) is complete and
accurate in all material respects at the dates as of which the information is
furnished and each Prepayment Charge is permissible and enforceable in
accordance with its terms under applicable state law.
(c) Upon discovery by the Seller or a Responsible Officer of the
Trustee of a breach of the foregoing clause (b) that materially and adversely
affects right of the Holders of the Class P Certificate to any Prepayment
Charge, the party discovering the breach shall give prompt written notice to the
other parties. If the NIM Insurer discovers a breach of the foregoing, it may
give written notice of the breach to the Master Servicer, the Seller, and the
Trustee. Within sixty (60) days of the earlier of discovery by the Master
Servicer or receipt of notice by the Master Servicer of breach, the Master
Servicer shall cure the breach in all material respects or shall pay into the
Collection Account the amount of the scheduled Prepayment Charge, less any
amount previously collected and paid by the Master Servicer into the Collection
Account. If the covenant made by the Master Servicer in clause (a) above is
breached, the Master Servicer must pay into the Collection Account the amount of
the waived Prepayment Charge.
Section 3.22 PRE-FUNDING ACCOUNTS.
(a) No later than the Closing Date, the Trustee shall establish
and maintain two segregated trust accounts that are each Eligible Accounts,
which shall be titled (i) "Group I Pre-Funding Account, Deutsche Bank National
Trust Company, as Trustee for the registered holders of Home Equity Mortgage
Loan Asset-Backed Certificates, Series INABS 2005-C" (the "GROUP I PRE-FUNDING
ACCOUNT") and (ii) "Group II Pre-Funding Account, Deutsche Bank National Trust
Company, as Trustee for the registered holders of Home Equity Mortgage Loan
Asset-Backed Certificates, Series INABS 2005-C" (the "GROUP II PRE-FUNDING
ACCOUNT"). The Trustee shall, promptly upon receipt, deposit in the applicable
Pre-Funding Account and retain therein the Original Group I Pre-Funded Amount or
the Original Group II Pre-Funded Amount, as applicable, remitted on the Closing
Date to the Trustee by the Depositor. Funds deposited in the Pre-Funding
Accounts shall be held in trust by the Trustee for the Certificateholders for
the uses and purposes set forth herein.
(b) The Trustee shall invest funds deposited in the Pre-Funding
Accounts in Permitted Investments of the kind described in clauses (i), (iii) or
(ix) of the definition of Permitted Investments, as specified in a written
direction from the Master Servicer, with a maturity date no later than the
second Business Day preceding each Distribution Date. For federal income tax
purposes, the holder of the largest Percentage Interest of the Residual
Certificates shall be the owner of the Pre-Funding Accounts and shall report all
items of income, deduction, gain or loss arising therefrom. The Master Servicer
shall deposit in the applicable Pre-Funding Account the amount of any net loss
incurred in respect of any such Permitted Investment immediately upon
realization of such loss without any right of reimbursement therefor. The
Pre-Funding Accounts shall not be assets of any Trust REMIC.
(c) Amounts on deposit in the Pre-Funding Accounts shall be
withdrawn by the Trustee as follows:
(i) on any Subsequent Transfer Date, the Trustee shall
withdraw from the related Pre-Funding Account an amount equal to 100%
of the Stated Principal Balances of the Subsequent Mortgage Loans
transferred and assigned to the Trustee for deposit in the pool of
Mortgage Loans on such Subsequent Transfer Date and pay such amount to
or upon the order of the Depositor upon satisfaction of the conditions
set forth in Section 2.07 with respect to such transfer and assignment;
(ii) if the amount on deposit in the related Pre-Funding
Account has not been reduced to zero during the Funding Period, on the
day of the termination of the Funding Period, the Trustee shall deposit
into the Distribution Account any amounts remaining in the Pre-Funding
Account to be held uninvested;
(iii) to distribute to the applicable Interest Coverage
Account any income and gain realized from the investment of funds in
the related Pre-Funding Account;
(iv) to withdraw any amount not required to be deposited
in the Pre-Funding Accounts or deposited therein in error; and
(v) to clear and terminate the Pre-Funding Accounts upon
the earlier to occur of (A) the day immediately following the end of
the Funding Period and (B) the termination of this Agreement, with any
amounts remaining on deposit therein being paid to the
Certificateholders then entitled to distributions in respect of
principal.
Section 3.23 INTEREST COVERAGE ACCOUNTS.
(a) If amounts are required to be deposited in the Interest
Coverage Accounts, no later than the Closing Date, the Trustee shall establish
and maintain a segregated non-interest bearing trust account that is an Eligible
Account, which shall be titled (i) "Group I Interest Coverage Account, Deutsche
Bank National Trust Company, as trustee for the registered holders of Home
Equity Mortgage Loan Asset-Backed Trust, Series INABS 2005-C" (the "GROUP I
INTEREST COVERAGE ACCOUNT") and (ii) "Group II Interest Coverage Account,
Deutsche Bank National Trust Company, as trustee for the registered holders of
Home Equity Mortgage Loan Asset-Backed Trust, Series INABS 2005-C" (the "GROUP
II INTEREST COVERAGE ACCOUNT"). The Trustee shall, promptly upon receipt,
deposit in each Interest Coverage Account and retain therein the related
Interest Coverage Amount, remitted on the Closing Date to the Trustee by the
Depositor. Funds deposited in the Interest Coverage Accounts shall be held in
trust by the Trustee for the Certificateholders for the uses and purposes set
forth herein.
(b) The Trustee shall invest funds deposited in the Interest
Coverage Accounts in Permitted Investments of the kind described in clauses (i),
(v) or (vi) of the definition of Permitted Investments, as specified in a
written direction from the Depositor, with a maturity date no later than the
second Business Day preceding each Distribution Date. For federal income tax
purposes, the holder of the largest Percentage Interest of the Residual
Certificates shall be the owner of the Interest Coverage Accounts and shall
report all items of income, deduction, gain or loss arising therefrom. At no
time shall either Interest Coverage Account be an asset of any Trust REMIC. All
income and gain realized from investment of funds deposited in the Interest
Coverage Accounts shall be for the sole and exclusive benefit of the Depositor
and shall be remitted by the Trustee to the Depositor on the first Business Day
following each Distribution Date. The Depositor shall deposit in the Interest
Coverage Accounts the amount of any net loss incurred in respect of any such
Permitted Investment immediately upon realization of such loss.
(c) On each Distribution Date during the Funding Period and on the
last day of the Funding Period, the Trustee shall withdraw from the related
Interest Coverage Account and deposit in the Distribution Account an amount
equal to 30 days' interest on the excess, if any, of the related Original
Pre-Funded Amount, over the aggregate Stated Principal Balance of the related
Subsequent Mortgage Loans that both (i) had a Due Date during the Remittance
Period relating to such Distribution Date and (ii) had a Subsequent Cut-off Date
prior to the first day of the month in which such Distribution Date occurs, at a
per annum rate equal to the weighted average Pass-Through Rate of the related
Offered Certificates for such Distribution Date, with the Pass-Through Rate on
the related Offered Certificates, solely for the purposes of the foregoing
calculation, multiplied by a fraction, the numerator of which is the actual
number of days in the Accrual Period for such Class for such Distribution Date,
and the denominator of which is 30. Such withdrawal and deposit shall be treated
as a contribution of cash by the Servicer to REMIC I. Immediately following any
such withdrawal and deposit, and immediately following the conveyance of any
Subsequent Mortgage Loans to the Trust on any Subsequent Transfer Date, the
Trustee shall withdraw from the related Interest Coverage Account and remit to
the Depositor or its designee an amount equal to the excess, if any, of the
amount remaining in such Interest Coverage Account over the amount that would be
required to be withdrawn therefrom (assuming sufficient funds therein) pursuant
to the second preceding sentence on each subsequent Distribution Date, if any,
that shall occur during the Funding Period or that shall be the last day of the
Funding Period, if no Subsequent Mortgage Loans were acquired by the Trust Fund
after the end of the Prepayment Period relating to the current Distribution Date
(assuming that LIBOR remains constant at the level of LIBOR applicable to the
calculation of the Pass-Through Rate for the Class A Certificates and Mezzanine
Certificates for the current Distribution Date).
Upon the earlier of (i) the Distribution Date immediately following the
end of the Funding Period, (ii) the reduction of the aggregate Certificate
Principal Balance of the Class A Certificates and the Mezzanine Certificates to
zero or (iii) the termination of this Agreement in accordance with Section 9.01,
any amount remaining on deposit in the Interest Coverage Accounts after
distributions pursuant to paragraph (c) above shall be withdrawn by the Trustee
and paid to the Depositor or its designee.
ARTICLE IV
DISTRIBUTIONS AND ADVANCES BY THE MASTER SERVICER
Section 4.01 ADVANCES.
(a) The Master Servicer shall determine by each Master Servicer
Advance Date whether it is required to make an Advance pursuant to the
definition of Advance. If the Master Servicer determines it is required to make
an Advance, it shall, by the Master Servicer Advance Date, either (i) deposit
into the Certificate Account the Advance or (ii) make an appropriate entry in
its records relating to the Certificate Account that any Amount Held for Future
Distribution has been used by the Master Servicer in discharge of its obligation
to make the Advance. The Master Servicer shall replace any funds so applied by
making a deposit in the Certificate Account no later than the close of business
on the next Master Servicer Advance Date. The Master Servicer shall be
reimbursed from the Certificate Account for all Advances of its own funds made
pursuant to this Section 4.01, as provided in Section 3.09. The obligation to
make Advances with respect to any Mortgage Loan shall continue if the Mortgage
Loan has been foreclosed or otherwise terminated and the related Mortgaged
Property has not been liquidated. The Master Servicer shall inform the Trustee
of the amount of the Advance to be made on each Master Servicer Advance Date no
later than the second Business Day before the related Distribution Date.
(b) If the Master Servicer determines that it will be unable to
comply with its obligation to make the Advances as and when described in the
second sentence of Section 4.01(a), it shall use its best efforts to give
written notice thereof to the Trustee (each such notice, an "ADVANCE NOTICE";
and such notice may be given by telecopy), not later than 3:00 p.m., (New York
time), on the Business Day immediately preceding the related Master Servicer
Advance Date, specifying the amount that it will be unable to deposit (each such
amount, an "ADVANCE DEFICIENCY") and certifying that such Advance Deficiency
constitutes the amount of an Advance hereunder and that such Advance would not
be a Nonrecoverable Advance. If the Trustee receives an Advance Notice on or
before 3:00 p.m., (New York time) on a Master Servicer Advance Date, the Trustee
is entitled to immediately terminate the Master Servicer under Section 7.01, and
shall, not later than 3:00 p.m., (New York time), on the related Distribution
Date, deposit in the Distribution Account an amount equal to the Advance
Deficiency identified in such Advance Notice unless it is prohibited from so
doing by applicable law. Notwithstanding the foregoing, the Trustee shall not be
required to make such deposit if the Trustee shall have received written
notification from the Master Servicer that the Master Servicer has deposited or
caused to be deposited in the Certificate Account an amount equal to such
Advance Deficiency by 3:00 p.m. (New York time) on the related Distribution
Date. If the Trustee has not terminated the Master Servicer, the Master Servicer
shall reimburse the Trustee for the amount of any such Advance Deficiency
(including interest at the Prime Rate published in THE WALL STREET JOURNAL on
the day of such reimbursement on such amount), made by the Trustee pursuant to
this Section 4.01(b), not later than the second day following the related Master
Servicer Advance Date. In the event that the Master Servicer does not reimburse
the Trustee in accordance with the requirements of the preceding sentence, the
Trustee shall immediately (a) terminate all of the rights and obligations of the
Master Servicer under this Agreement in accordance with Section 7.01 and (b)
subject to the limitations set forth in Section 3.05, assume all of the rights
and obligations of the Master Servicer hereunder.
(c) The Master Servicer shall, not later than the close of
business on the Business Day immediately preceding each Master Servicer Advance
Date, deliver to the Trustee a report (in form and substance reasonably
satisfactory to the Trustee) that indicates (i) the Mortgage Loans with respect
to which the Master Servicer has determined that the related Scheduled Payments
should be advanced and (ii) the amount of the related Scheduled Payments. The
Master Servicer shall deliver to the Trustee on the related Master Servicer
Advance Date an Officer's Certificate of a Servicing Officer indicating the
amount of any proposed Advance determined by the Master Servicer to be a
Nonrecoverable Advance.
Section 4.02 PRIORITIES OF DISTRIBUTION.
(I) Net Swap Payments and Swap Termination Payments (other than
Swap Termination Payments resulting from a Swap Provider Trigger Event) payable
by the Supplemental Interest Trust to the Swap Provider pursuant to the Swap
Agreement shall be deducted from Interest Remittance Amount, and to the extent
of any such remaining amounts due, from Principal Remittance Amount, prior to
any distributions to the Certificateholders. On each Distribution Date, such
amounts will be remitted to the Supplemental Interest Trust, first to make any
Net Swap Payment owed to the Swap Provider pursuant to the Swap Agreement for
such Distribution Date, and second to make any Swap Termination Payment (not due
to a Swap Provider Trigger Event) owed to the Swap Provider pursuant to the Swap
Agreement for such Distribution Date. The Trustee will then make the
disbursements and transfers from amounts then on deposit in the Distribution
Account in the following order of priority for each Certificate Group and, in
each case, to the extent of the remaining Available Funds:
(a) Interest Distributions.
(i) From the Group I Interest Remittance Amount,
(A) to the Class A-I-1 Certificates, the related
Accrued Certificate Interest Distribution Amount and any
related Unpaid Interest Amounts for such Class on that
Distribution Date; and
(B) concurrently, to the Class A-II-1, Class
A-II-2 and Class A-II-3 Certificates, PRO RATA, the related
Accrued Certificate Interest Distribution Amount or Unpaid
Interest Amounts remaining undistributed for such Classes on
that Distribution Date after the distributions in clause (ii)
below;
(ii) From the Group II Interest Remittance Amount:
(A) concurrently, to the Class A-II-1, Class
A-II-2 and Class A-II-3 Certificates, PRO RATA, the related
Accrued Certificate Interest Distribution Amount and any
related Unpaid Interest Amounts for such Classes on that
Distribution Date; and
(B) to the Class A-I-1 Certificates, the related
Accrued Certificate Interest Distribution Amount or Unpaid
Interest Amounts remaining undistributed for such Class on
that Distribution Date after distributions pursuant to clause
(i) above; and
(iii) From the remaining Group I Interest Remittance Amount
and Group II Interest Remittance Amount:
(A) to the Class M-1 Certificates, the Accrued
Certificate Interest Distribution Amount for the Class on the
Distribution Date;
(B) to the Class M-2 Certificates, the Accrued
Certificate Interest Distribution Amount for the Class on the
Distribution Date;
(C) to the Class M-3 Certificates, the Accrued
Certificate Interest Distribution Amount for the Class on the
Distribution Date;
(D) to the Class M-4 Certificates, the Accrued
Certificate Interest Distribution Amount for the Class on the
Distribution Date;
(E) to the Class M-5 Certificates, the Accrued
Certificate Interest Distribution Amount for the Class on the
Distribution Date;
(F) to the Class M-6 Certificates, the Accrued
Certificate Interest Distribution Amount for the Class on the
Distribution Date;
(G) to the Class M-7 Certificates, the Accrued
Certificate Interest Distribution Amount for the Class on the
Distribution Date;
(H) to the Class M-8 Certificates, the Accrued
Certificate Interest Distribution Amount for the Class on the
Distribution Date;
(I) to the Class M-9 Certificates, the Accrued
Certificate Interest Distribution Amount for the Class on the
Distribution Date;
(J) to the Class M-10 Certificates, the Accrued
Certificate Interest Distribution Amount for the Class on the
Distribution Date; and
(K) to the Class M-11 Certificates, the Accrued
Certificate Interest Distribution Amount for the Class on the
Distribution Date.
(b) Principal Distributions.
(i) with respect to each Distribution Date (x) before the
Stepdown Date or (y) if a Trigger Event is in effect, to the holders of
the Classes of Class A and Subordinated Certificates then entitled to
distributions of principal as set forth below, the applicable Principal
Distribution Amount from each Loan Group in the following amounts and
order of priority:
(A) (x) in the case of the Group I Certificates,
the Group I Principal Distribution Amount, to the Class A-I-1
Certificates, until the Class Certificate Balance thereof has
been reduced to zero; and
(y) from any remaining Group I Principal
Distribution Amount, sequentially, to the Class A-II-1, Class
A-II-2 and Class A-II-3 Certificates (after the distribution
of the Group II Principal Distribution Amount as provided in
clause (b)(i)(B)(x) below), in that order, until their
respective Class Certificate Balances have been reduced to
zero; provided, however, that with respect to distributions on
any Distribution Date pursuant to this clause (b)(i)(A)(y) on
which the aggregate Class Certificate Balance of the
Subordinated Certificates has been reduced to zero and the
Overcollateralization Amount for such Distribution Date is
equal to or less than zero, any remaining Group I Principal
Distribution Amount for that Distribution Date to be
distributed to the Group II Certificates will be distributed,
concurrently, to the Class A-II-1, Class A-II-2 and Class
A-II-3 Certificates, PRO RATA (rather than sequentially),
based on their respective Class Certificate Balances;
(B) (x) in the case of the Group II
Certificates, the Group II Principal Distribution Amount,
sequentially, to the Class A-II-1, Class A-II-2 and Class
A-II-3 Certificates, in that order, until their respective
Class Certificate Balances have been reduced to zero;
provided, however, that with respect to distributions on any
Distribution Date pursuant to this clause (b)(i)(B)(x) on
which the aggregate Class Certificate Balance of the
Subordinated Certificates has been reduced to zero and the
Overcollateralization Amount for such Distribution Date is
equal to or less than zero, the Group II Principal
Distribution Amount for that Distribution Date to be
distributed to the Group II Certificates will be distributed,
concurrently, to the Class A-II-1, Class A-II-2 and Class
A-II-3 Certificates, PRO RATA (rather than sequentially),
based on their respective Class Certificate Balances; and
(y) from any remaining Group II Principal
Distribution Amount, to the Class A-I-1Certificates (after the
distribution of the Group I Principal Distribution Amount as
provided in clause (b)(i)(A)(x) above), until the Class
Certificate Balance thereof has been reduced to zero;
(C) from any remaining Group I Principal
Distrubtion Amount and Group II Principal Distribution Amount,
sequentially, to the Class X-0, Xxxxx X-0, Class M-3, Class
M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9,
Class M-10 and Class M-11 Certificates, in that order, until
their respective Class Certificate Balances are reduced to
zero;
(ii) with respect to each Distribution Date (x) on and
after the Stepdown Date and (y) as long as a Trigger Event is not in
effect, to the holders of the Classes of Class A and Subordinated
Certificates then entitled to distributions of principal, an amount
equal to the applicable Principal Distribution Amount from each Loan
Group in the following amounts and order of priority:
(A) (x) the LESSER OF (1) the Group I Principal
Distribution Amount AND (2) the Group I Senior Principal
Distribution Amount, to the Class A-I-1 Certificates, until
the Class Certificate Balance thereof has been reduced to
zero; and
(y) the LESSER OF (1) any remaining Group I
Principal Distribution Amount AND (2) the Group II Senior
Principal Distribution Amount that remains undistributed,
sequentially, to the Class A-II-1, Class A-II-2 and Class
A-II-3 Certificates (after the distribution of the Group II
Principal Distribution Amount as provided in clause
(b)(ii)(B)(x) below), in that order, until their respective
Class Certificate Balances have been reduced to zero;
provided, however, that with respect to distributions on any
Distribution Date pursuant to this clause (b)(ii)(A)(y) on
which the aggregate Class Certificate Balance of the
Subordinated Certificates has been reduced to zero and the
Overcollateralization Amount for such distribution date is
equal to or less than zero, any remaining Group I Principal
Distribution Amount for that Distribution Date to be
distributed to the Group II Certificates will be distributed
concurrently to the Class A-II-1, Class A-II-2 and Class
A-II-3 Certificates, PRO RATA (rather than sequentially),
based on their respective Class Certificate Balances; and
(B) (x) THE LESSER OF (1) the Group II Principal
Distribution Amount AND (2) the Group II Senior Principal
Distribution Amount, sequentially, to the Class A-II-1, Class
A-II-2 and Class A-II-3 Certificates, in that order, until
their respective Class Certificate Balances have been reduced
to zero; provided, however, that with respect to distributions
on any Distribution Date pursuant to this clause (b)(ii)(B)(x)
on which the aggregate Class Certificate Balance of the
Subordinated Certificates has been reduced to zero and the
Overcollateralization Amount for such Distribution Date is
equal to or less than zero, the Group II Principal
Distribution Amount for that Distribution Date to be
distributed to the Group II Certificates will be distributed
concurrently to the Class A-II-1, Class A-II-2 and Class
A-II-3 Certificates, PRO RATA (rather than sequentially),
based on their respective Class Certificate Balances;
(y) the LESSER OF (A) any remaining Group II
Principal Distribution Amount AND (B) the Group I Senior
Principal Distribution Amount that remains undistributed, to
the Class A-I-1 Certificates (after the distribution of the
Group I Principal Distribution Amount, as provided in clause
(b)(ii)(A)(x) above), until the Class Certificate Balance
thereof has been reduced to zero;
(C) the remaining Principal Distribution Amount
from each Loan Group as follows:
(1) the Class M-1 Principal
Distribution Amount to the Class M-1 Certificates,
until their Class Certificate Balance has been
reduced to zero;
(2) the Class M-2 Principal
Distribution Amount to the Class M-2 Certificates,
until their Class Certificate Balance has been
reduced to zero;
(3) the Class M-3 Principal
Distribution Amount to the Class M-3 Certificates,
until their Class Certificate Balance has been
reduced to zero;
(4) the Class M-4 Principal
Distribution Amount to the Class M-4 Certificates,
until their Class Certificate Balance has been
reduced to zero;
(5) the Class M-5 Principal
Distribution Amount to the Class M-5 Certificates,
until their Class Certificate Balance has been
reduced to zero;
(6) the Class M-6 Principal
Distribution Amount to the Class M-6 Certificates,
until their Class Certificate Balance has been
reduced to zero;
(7) the Class M-7 Principal
Distribution Amount to the Class M-7 Certificates,
until their Class Certificate Balance has been
reduced to zero;
(8) the Class M-8 Principal
Distribution Amount to the Class M-8 Certificates,
until their Class Certificate Balance has been
reduced to zero;
(9) the Class M-9 Principal
Distribution Amount to the Class M-9 Certificates,
until their Class Certificate Balance has been
reduced to zero;
(10) the Class M-10 Principal
Distribution Amount to the Class M-10 Certificates,
until their Class Certificate Balance has been
reduced to zero; and
(11) the Class M-11 Principal
Distribution Amount to the Class M-11 Certificates,
until their Class Certificate Balance has been
reduced to zero.
(c) Any amount of Available Funds remaining after the
distributions in clauses (a) and (b) above shall be distributed in the following
order of priority with respect to the Certificates:
(i) to fund the Extra Principal Distribution Amount for
the Distribution Date to be paid as a component of the Principal
Distribution Amount in the same order of priority as described in
clause (b) above;
(ii) to the holders of the Class M-1 Certificates, any
Unpaid Interest Amounts for the Class;
(iii) to the holders of the Class M-1 Certificates, any
Unpaid Realized Loss Amount for the Class;
(iv) to the holders of the Class M-2 Certificates, any
Unpaid Interest Amounts for the Class;
(v) to the holders of the Class M-2 Certificates, any
Unpaid Realized Loss Amount for the Class;
(vi) to the holders of the Class M-3 Certificates, any
Unpaid Interest Amounts for the Class;
(vii) to the holders of the Class M-3 Certificates, any
Unpaid Realized Loss Amount for the Class;
(viii) to the holders of the Class M-4 Certificates, any
Unpaid Interest Amounts for the Class;
(ix) to the holders of the Class M-4 Certificates, any
Unpaid Realized Loss Amount for the Class;
(x) to the holders of the Class M-5 Certificates, any
Unpaid Interest Amounts for the Class;
(xi) to the holders of the Class M-5 Certificates, any
Unpaid Realized Loss Amount for the Class;
(xii) to the holders of the Class M-6 Certificates, any
Unpaid Interest Amounts for the Class;
(xiii) to the holders of the Class M-6 Certificates, any
Unpaid Realized Loss Amount for the Class;
(xiv) to the holders of the Class M-7 Certificates, any
Unpaid Interest Amounts for the Class;
(xv) to the holders of the Class M-7 Certificates, any
Unpaid Realized Loss Amount for the Class;
(xvi) to the holders of the Class M-8 Certificates, any
Unpaid Interest Amounts for the Class;
(xvii) to the holders of the Class M-8 Certificates, any
Unpaid Realized Loss Amount for the Class;
(xviii) to the holders of the Class M-9 Certificates, any
Unpaid Interest Amounts for the Class;
(xix) to the holders of the Class M-9 Certificates, any
Unpaid Realized Loss Amount for the Class;
(xx) to the holders of the Class M-10 Certificates, any
Unpaid Interest Amounts for the Class;
(xxi) to the holders of the Class M-10 Certificates, any
Unpaid Realized Loss Amount for the Class;
(xxii) to the holders of the Class M-11 Certificates, any
Unpaid Interest Amounts for the Class;
(xxiii) to the holders of the Class M-11 Certificates, any
Unpaid Realized Loss Amount for the Class;
(xxiv) to the Excess Reserve Fund Account, the amount of any
Net WAC Cap Payment for such Distribution Date;
(xxv) from funds on deposit in the Excess Reserve Fund
Account, to the Certificateholders an amount equal to any Net WAC Cap
Carryforward Amount for such Distribution Date in the order and
priority specified in Section 4.02(IV);
(xxvi) to the Supplemental Interest Trust for payment to the
Swap Provider, any Swap Termination Payments resulting from a Swap
Provider Trigger Event not previously paid;
(xxvii) to the holders of the Class C Certificate, the Class
C Distributable Amount; and
(xxviii) to the holders of the Class R Certificates, the
remaining amount.
(II) On each Distribution Date, an amount equal to all Prepayment
Charges received during the related Prepayment Period will be distributed to the
holders of the Class P Certificates.
(III) Without limiting the provisions of Section 9.02, by acceptance
of the Class R Certificates, the holders of the Class R Certificates agree, and
it is the understanding of the parties hereto, for so long as the NIM Notes are
outstanding, to assign and transfer their rights to receive any amounts
otherwise distributable to the holders of the Class R Certificates (and such
rights are hereby assigned and transferred) to the holders of the Class C
Certificates, to be paid to the holders of the Class C Certificates.
(IV) On each Distribution Date, the Trustee will make the
disbursements and transfers from amounts then on deposit in the Excess Reserve
Fund Account in the following order of priority, to the extent of funds
available therefor:
(a) From payments, if any, received under the Cap Contract as
follows, subject to the provisions set forth in subsection (c) below:
(i) concurrently, to each Class of Class A Certificates,
based on the amount of the Net WAC Cap Carry Forward Amount for such
Class;
(ii) sequentially, to the Subordinated Certificates, in
order of their payment priority, the amount of Net WAC Cap Carry
Forward Amount for each such Class; and
(iii) to the Cap Contract Counterparty, any remaining cap
payments.
(b) From other amounts on deposit in the Excess Reserve Fund
Account as follows:
(i) concurrently, to the Class A Certificates, PRO RATA,
based on their Class Certificate Balances, to the extent of any
remaining Net WAC Cap Carry Forward Amount for each such Class; and
(ii) sequentially, to the Subordinated Certificates, in
order of their payment priority, to the extent of any remaining Net WAC
Cap Carry Forward Amount for each such Class.
(c) Notwithstanding anything to the contrary herein, for so long
as any Certificates are held by the Seller or its Affiliates, the Trustee shall
not knowingly distribute any amounts received under the Cap Contract in respect
of any Class of Certificates held by the Seller or any of its Affiliates, and
any such amounts shall instead be distributed in accordance with Section
4.02(IV) excluding those Certificates held by the Seller or its Affiliates. At
least six (6) Business Days prior to the related Distribution Date, the Seller
shall make available to the Trustee a statement containing (i) the aggregate
Certificate Balances of each of the Group I Certificates, Group II Certificates
and Subordinated Certificates owned by the Seller or any of its Affiliates
during the immediately preceding Interest Accrual Period and/or as of the date
of such statement to the Trustee and (ii) the names of the Sellers and/or any of
its Affiliates that own any of the Group I Certificates, Group II Certificates
or Subordinated Certificates during the immediately preceding Interest Accrual
Period and/or as of the date of such statement to the Trustee. The Seller and
its Affiliates hereby agree that (i) the Seller and its Affiliates shall own not
less than 100% of any Class of Certificates and all transfers of Group I
Certificates, Group II Certificates or Subordinated Certificates of any Class
that the Seller and/or is Affiliates may undertake shall be restricted to 100%
of such Class and (ii) neither the Seller nor any of its Affiliates shall
undertake to sell any Certificates held by such entities or purchase any
additional Certificates from the date of such statement to the Trustee until the
first day following the related Distribution Date. Any amounts received by the
Seller or any of its Affiliates under the Cap Contract in respect of such
Certificates owned by the Seller or any of its Affiliates, or in error or
otherwise, shall be immediately returned by the Seller to the Trustee and then
distributed by the Trustee to other entitled Certificateholders of such Class in
accordance with Section 4.02(IV), and if no such other Certificateholders, to
the Cap Contract Counterparty.
(V) On each Distribution Date, the Supplemental Interest Trust
Administrator shall distribute from the amounts received from the Swap Provider
in respect of any Net Swap Payment then on deposit in the Supplemental Interest
Trust the following amounts in the following order of priority:
(1) concurrently, to the Class A Certificates, PRO RATA,
in an amount equal to any Unpaid Interest Amounts (including any Unpaid
Interest Amounts from prior Distribution Dates);
(2) sequentially, to the Subordinated Certificates, in
order of their payment priority, in an amount equal to any Unpaid
Interest Amounts (including any Unpaid Interest Amounts from prior
Distribution Dates);
(3) concurrently, to the Classes of Certificates then
entitled to distributions of principal, to fund the Extra Principal
Distribution Amount for the Distribution Date, to be paid as a
component of the Principal Distribution Amount in the same order of
priority as described in Sections 4.01(I)(b) above;
(4) [RESERVED];
(5) sequentially, to the Subordinated Certificates, in
order of their payment priority, in an amount equal to any Unpaid
Realized Losses; and
(6) to the Excess Reserve Fund Account, to pay the Class
A Certificates and the Subordinated Certificates as follows: first, to
the Class A Certificates, PRO RATA, any related Net WAC Cap Carry
Forward Amounts for such Classes of Class A Certificates remaining
unpaid on such Distribution Date, and second, sequentially, to the
Subordinated Certificates, in order of their payment priority, any
related Net WAC Cap Carry Forward Amounts for such Class or Classes of
Subordinated Certificates remaining unpaid on such Distribution Date,
in each case to the extent not covered by other amounts on deposit in
the Excess Reserve Fund Account.
Section 4.03 MONTHLY STATEMENTS TO CERTIFICATEHOLDERS.
(a) Not later than each Distribution Date, the Trustee shall
prepare and make available to each Certificateholder, the Master Servicer, the
Depositor, the NIM Insurer and each Rating Agency on its Internet website a
statement for the related distribution of:
(i) the amount of the distribution allocable to
principal, separately identifying the aggregate amount of any Principal
Prepayments and Liquidation Proceeds included therein;
(ii) the amount of the distribution allocable to interest,
any Unpaid Interest Amounts included in the distribution and any
remaining Unpaid Interest Amounts after giving effect to the
distribution, any Net WAC Cap Carry Forward Amount for the Distribution
Date, and the amount of all Net WAC Cap Carry Forward Amounts covered
by withdrawals from the Excess Reserve Fund Account on the Distribution
Date;
(iii) if the distribution to the Holders of any Class of
Certificates is less than the full amount that would be distributable
to them if sufficient funds were available, the amount of the shortfall
and the allocation of the shortfall between principal and interest,
including any Net WAC Cap Carry Forward Amount not covered by amounts
in the Excess Reserve Fund Account;
(iv) the Class Certificate Balance of each Class of
Certificates after giving effect to the distribution of principal on
the Distribution Date;
(v) the Pool Stated Principal Balance;
(vi) the amount of the Master Servicing Fees paid to or
retained by the Master Servicer or Subservicer (with respect to the
Subservicers, in the aggregate) with respect to the Distribution Date;
(vii) the Pass-Through Rate for each Class of Certificates
with respect to the Distribution Date;
(viii) the amount of Advances included in the distribution
on the Distribution Date and the aggregate amount of Advances
outstanding as of the close of business on the Distribution Date;
(ix) the number and aggregate outstanding balance of the
Mortgage Loans in each Loan Group as of the end of the preceding
calendar month:
(A) delinquent (exclusive of Mortgage Loans in
foreclosure) (1) 30 to 59 days, (2) 60 to 89 days and (3) 90
or more days and
(B) in foreclosure and delinquent (1) 30 to 59
days, (2) 60 to 89 days and (3) 90 or more days,
as of the close of business on the last day of the calendar
month preceding the Distribution Date;
(x) for each of the preceding 12 calendar months, or all
calendar months since the Cut-off Date, whichever is less, the
aggregate dollar amount of the Scheduled Payments (A) due on all
Outstanding Mortgage Loans on the Due Date in such month and (B)
delinquent sixty (60) days or more (determined in the same manner as
for determining Scheduled Payment delinquencies that result in a
Mortgage Loan being a 60+ Day Delinquent Loan) on the Due Date in such
month;
(xi) with respect to any Mortgage Loan that became an REO
Property during the preceding calendar month, the loan number and
Stated Principal Balance of the Mortgage Loan as of the close of
business on the Determination Date preceding the Distribution Date and
the date of acquisition thereof;
(xii) the total number and principal balance of any REO
Properties (and market value, if available) as of the close of business
on the Determination Date preceding the Distribution Date;
(xiii) whether a Trigger Event is in effect (including the
calculation thereof and the aggregate outstanding balance of all 60+
Day Delinquent Loans);
(xiv) the amount on deposit in the Excess Reserve Fund
Account (after giving effect to distributions on the Distribution
Date);
(xv) the aggregate amount of Applied Realized Loss Amounts
incurred during the preceding calendar month and the aggregate Unpaid
Realized Loss Amount through the Distribution Date;
(xvi) the amount due under the Cap Contract and amounts
received under the Cap Contract;
(xvii) the amount of any Net Swap Payment to the
Supplemental Interest Trust from the Swap Provider and any Swap
Termination Payment to the Supplemental Interest Trust from the Swap
Provider;
(xviii) the amount of any Total Monthly Excess Spread on the
Distribution Date and the allocation thereof to the Certificateholders
with respect to Unpaid Realized Loss Amounts and Unpaid Interest
Amounts;
(xix) with respect to the second Distribution Date, the
number and aggregate balance of any Delayed Delivery Mortgage Loans not
delivered within the time periods specified in the definition of
Delayed Delivery Mortgage Loans;
(xx) the Overcollateralization Amount and the
Overcollateralization Target Amount;
(xxi) Prepayment Charges collected, waived, and paid by the
Master Servicer;
(xxii) the amount on deposit in the Pre-Funding Accounts and
the Interest Coverage Accounts; and
(xxiii) for the distribution occurring on the Distribution
Date immediately following the end of the Funding Period, the balance
on deposit in the Group I Pre-Funding Account and/or the Group II
Pre-Funding Account that has not been used to purchase Subsequent
Mortgage Loans and that is being distributed to the Certificateholders
on such Distribution Date.
For the purposes of determining delinquency periods in reporting under
(ix) above, for any monthly statement, a Mortgage Loan's delinquency period
shall be determined as of the Due Date falling in the month in which the monthly
statement is provided and a Mortgage Loan is first delinquent only after the
first Due Date following the Due Date for which any part of a Scheduled Payment
has not been paid, and each calendar month shall be treated as having 30 days.
Thus, for the October monthly statement a Mortgage Loan whose September Due Date
payment has not been paid by the October Due Date is not delinquent. On the day
after the October Due Date, such Mortgage Loan would be one day delinquent. A
Mortgage Loan whose September Due Date payment has not been paid by the October
Due Date is 30 days past due as of the October Due Date, and would be reported
as such in the October monthly statement.
If the statement is not accessible to any of the Certificateholders,
the Master Servicer, the Depositor, the NIM Insurer or any Rating Agency on the
Trustee's Internet website, the Trustee shall forward a hard copy of it to each
Certificateholder, the Master Servicer, the Depositor, the NIM Insurer and each
Rating Agency immediately after the Trustee becomes aware that it is not
accessible to any of them via its website. The address of the Trustee's Internet
website where the statement will be accessible is XXXXX://XXX.XXX.XX.XXX/XXXX.
Assistance in using the Trustee's Internet website may be obtained by calling
the Trustee's customer service desk at (000) 000-0000. The Trustee shall notify
each Certificateholder, the Master Servicer, the Depositor, the NIM Insurer and
each Rating Agency in writing of any change in the address or means of access to
the Internet website where the statement is accessible.
(b) The Trustee's responsibility for disbursing the above
information to the Certificateholders is limited to the availability,
timeliness, and accuracy of the information derived from the Master Servicer.
The Trustee is not responsible for any inaccuracies in or caused by the data
provided by the Master Servicer.
By each Determination Date, the Master Servicer shall provide to the
Trustee in electronic form the information needed to determine the distributions
to be made pursuant to Section 4.02 and 3.09(b)(ii) and any other information
that the Master Servicer and the Trustee mutually agree on.
(c) Within a reasonable period of time after the end of each
calendar year, the Trustee shall cause to be furnished to each Person who at any
time during the calendar year was a Certificateholder, a statement containing
the information in clauses (a)(i) and (a)(ii) of this Section 4.03 aggregated
for the calendar year or the applicable portion thereof during which the Person
was a Certificateholder. Within a reasonable period of time after the end of
each calendar year, the Trustee shall cause to be furnished to the NIM Insurer,
a statement containing the information in clauses (a)(i) and (a)(ii) of this
Section 4.03 aggregated for the calendar year. This obligation of the Trustee
shall be satisfied to the extent that substantially comparable information shall
be provided by the Trustee pursuant to any requirements of the Code as from time
to time in effect.
Section 4.04 CAP CONTRACT
(a) On or prior to the Closing Date, the Trustee, on behalf of the
Trust Fund, is hereby authorized to, and will enter into the Cap Contract for
the benefit of the Holders of the Group I Certificates, the Group II
Certificates and the Subordinated Certificates. The Cap Contract will be an
asset of the Trust Fund but not be an asset of any REMIC.
(b) The Trustee will prepare and deliver any notices required to
be delivered to the Cap Contract Counterparty under the Cap Contract.
(c) The Trustee shall terminate the Cap Contract Counterparty upon
the occurrence of an event of default under the Cap Contract of which a
Responsible Officer of the Trustee has actual knowledge. Upon such termination,
the Cap Contract Counterparty may be required to pay an amount to the Trustee in
respect of market quotations for the replacement cost of the Cap Contract. Any
such amounts shall be held in the Excess Reserve Fund Account and applied as
necessary until the Cap Contract termination date.
(d) The Trustee shall deposit any amounts received on the Cap
Contract into the Excess Reserve Fund and distribute such amounts as provided in
Section 4.02(IV)(except as set forth in (c) above).
Section 4.05 SUPPLEMENTAL INTEREST TRUST.
(a) As of the Closing Date, the Supplemental Interest Trust
Administrator shall establish and maintain in the name of the Trustee a separate
trust for the benefit of the holders of the Class A Certificates and
Subordinated Certificates (the "SUPPLEMENTAL INTEREST TRUST") into which the
Depositor shall deposit $1,000. The Supplemental Interest Trust shall hold the
Swap Agreement. The Supplemental Interest Trust shall include an Eligible
Account, and funds on deposit therein shall be held separate and apart from, and
shall not be commingled with, any other moneys, including, without limitation,
other moneys of the Trustee or of the Supplemental Interest Trust Administrator
held pursuant to this Agreement.
(b) On each Distribution Date, the Supplemental Interest Trust
Administrator shall deposit into the Supplemental Interest Trust amounts
distributable to the Supplemental Interest Trust pursuant to Sections 4.02(I)
and (V) of this Agreement. On each Distribution Date, the Supplemental Interest
Trust Administrator shall distribute any such amounts to the Swap Provider
pursuant to the Swap Agreement, first to pay any Net Swap Payment owed to the
Swap Provider for such Distribution Date, and second to pay any Swap Termination
Payment owed to the Swap Provider.
(c) On each Distribution Date, the Supplemental Interest Trust
Administrator shall deposit into the Supplemental Interest Trust amounts
received from the Swap Provider. On each Distribution Date, the Supplemental
Interest Trust Administrator shall distribute from the Supplemental Interest
Trust an amount equal to the amount of any Net Swap Payment received from the
Swap Provider under the Swap Agreement, in the following order of priority:
(i) first, an amount equal to the aggregate amount
required under Sections 4.02(I) and (V) to be distributed on such
Distribution Date, to the Class A and Subordinated Certificateholders
in accordance with Sections 4.02(I) and (V) of this Agreement;
provided, that for this purpose no Certificates held by the Seller, the
Depositor or any Affiliate receive such distribution, and
(ii) second, any remainder for such Distribution Date, to
the indenture trustee under the Indenture, to be distributed in
accordance with the Indenture.
(d) The Supplemental Interest Trust constitutes an "outside
reserve fund" within the meaning of Treasury Regulation ss. 1.860G-2(h) and is
not an asset of any REMIC. The Holders of the Class C Certificates shall be the
beneficial owner of the Supplemental Interest Trust, subject to the power of the
Supplemental Interest Trust Administrator to transfer amounts under this
Agreement. The Supplemental Interest Trust Administrator shall keep records that
accurately reflect the funds on deposit in the Supplemental Interest Trust. The
Supplemental Interest Trust Administrator shall, at the written direction of the
holder of at least 51% of the Voting Rights of the Class C Certificates, invest
amounts on deposit in the Supplemental Interest Trust in Permitted Investments.
In the absence of written direction to the Supplemental Interest Trust
Administrator from the holder of at least 51% of the Class C Certificates, all
funds in the Supplemental Interest Trust shall remain uninvested. On each
Distribution Date, the Supplemental Interest Trust Administrator shall
distribute, not in respect of any REMIC, any interest earned on the Supplemental
Interest Trust to the Holders of the Class C Certificates.
(e) For federal income tax purposes, amounts paid to the
Supplemental Interest Trust on each Distribution Date pursuant to Sections
4.02(I) and (V) shall first be deemed paid to the Supplemental Interest Trust in
respect of the Class IO Interest to the extent of the amount distributable on
such Class IO Interest on such Distribution Date, and any remaining amount shall
be deemed paid to the Supplemental Interest Trust in respect of a Class IO
Distribution Amount.
(f) The Supplemental Interest Trust Administrator shall treat the
Holders of Certificates (other than the Class P, Class C and Class R
Certificates) as having entered into a notional principal contract with respect
to the Holders of the Class C Certificates. Pursuant to each such notional
principal contract, all Holders of Certificates (other than the Class P, Class C
and Class R Certificates) shall be treated as having agreed to pay, on each
Distribution Date, to the Holder of the Class C Certificates an aggregate amount
equal to the excess, if any, of (i) the amount payable on such Distribution Date
on the REMIC Regular Interest ownership of which is represented by such Class of
Certificates over (ii) the amount payable on such Class of Certificates on such
Distribution Date (such excess, a "CLASS IO DISTRIBUTION AMOUNT"). A Class IO
Distribution Amount payable from interest collections shall be allocated pro
rata among such Certificates based on the amount of interest otherwise payable
to such Certificates, and a Class IO Distribution Amount payable from principal
collections shall be allocated to the most subordinate Class of such
Certificates with an outstanding principal balance to the extent of such
balance. In addition, pursuant to such notional principal contract, the Holder
of the Class C Certificates shall be treated as having agreed to pay Net WAC Cap
Carry Forward Amounts to the Holders of the Certificates (other than the Class
C, Class P and Class R Certificates) in accordance with the terms of this
Agreement. Any payments to such Certificates from amounts deemed received in
respect of this notional principal contract shall not be payments with respect
to a Regular Interest in a REMIC within the meaning of Code Section 860G(a)(1).
However, any payment from the Certificates (other than the Class C, Class P and
Class R Certificates) of a Class IO Distribution Amount shall be treated for tax
purposes as having been received by the Holders of such Certificates in respect
of the REMIC Regular Interest ownership of which is represented by such
Certificates, and as having been paid by such Holders to the Supplemental
Interest Trust pursuant to the notional principal contract. Thus, each
Certificate (other than the Class P and Class R Certificates) shall be treated
as representing not only ownership of a Regular Interest in REMIC IV, but also
ownership of an interest in, and obligations with respect to, a notional
principal contract.
(g) In the event that the Swap Agreement is terminated prior to
the Distribution Date in August 2009, the Supplemental Interest Trust
Administrator shall, as directed by and upon the recommendation of a
nationally-recognized investment bank (which may be UBS Securities LLC), and
using any Swap Termination Payments paid by the Swap Provider and deposited in
the Supplemental Interest Trust, appoint a successor Swap Provider.
(h) Notwithstanding anything contained herein, in the event that a
qualified successor Swap Provider is unable to be located, in accordance with
Section 4.05(g) above, within 30 days after receipt by the Supplemental Interest
Trust Administrator of the Swap Termination Payment paid by the terminated Swap
Provider, the Supplemental Interest Trust Administrator shall deposit such Swap
Termination Payment into a separate, non-interest bearing trust account
established by the Supplemental Interest Trust Administrator and the
Supplemental Interest Trust Administrator shall, on each Distribution Date
following receipt of such Swap Termination Payment, withdraw from such account
an amount equal to the Net Swap Payment, if any, that would have been paid to
the Trust by the original Swap Provider (computed in accordance with the
original Swap Agreement, attached hereto as Exhibit K) and distribute such
amount in accordance with Section 4.05(c). On the Distribution Date immediately
after the termination date of the original Swap Agreement, the Supplemental
Interest Trust Administrator shall withdraw any funds remaining in such account
and distribute such amount in accordance with this Agreement.
Section 4.06 TAX TREATMENT OF NET SWAP PAYMENTS AND SWAP
TERMINATION PAYMENTS.
For federal income tax purposes, each holder of a Class A or
Subordinated Certificate is deemed to own an undivided beneficial ownership
interest in a REMIC Regular Interest and the right to receive payments from
either the Excess Reserve Fund Account or the Supplemental Interest Trust in
respect of any Net WAC Cap Carry Forward Amounts or the obligation to make
payments to the Supplemental Interest Trust.
For federal income tax purposes, the Supplemental Interest Trust
Administrator will account for payments to each Class A and Subordinated
Certificates as follows: each Class A and Subordinated Certificate will be
treated as receiving their entire payment from REMIC III (regardless of any Swap
Termination Payment or obligation under the Swap Agreement) and subsequently
paying their portion of any Swap Termination Payment in respect of each such
Class's obligation under the Swap Agreement. In the event that any such Class is
resecuritized in a REMIC, the obligation under the Swap Agreement to pay any
such Swap Termination Payment (or any shortfall in the fee to the Swap
Provider), will be made by one or more of the REMIC Regular Interests issued by
the resecuritization REMIC subsequent to such REMIC Regular Interest receiving
its full payment from any such Class A or Subordinated Certificate.
Resecuritization of any Class A or Subordinated Certificate in a REMIC will be
permissible only if the Supplemental Interest Trust Administrator hereunder is
the trustee/securities administrator in such resecuritization. The REMIC regular
interest corresponding to a Class A or Subordinated Certificate will be entitled
to receive interest and principal payments at the times and in the amounts equal
to those made on the certificate to which it corresponds, except that (i) the
maximum interest rate of that REMIC Regular Interest will equal the Net WAC
Pass-Through Rate computed for this purpose by limiting the notional amount of
the Swap Agreement to the aggregate principal balance of the Mortgage Loans and
(ii) any Swap Termination Payment will be treated as being payable solely from
Total Monthly Excess Spread. As a result of the foregoing, the amount of
distributions and taxable income on the REMIC Regular Interest corresponding to
a Class A or Subordinated Certificate may exceed the actual amount of
distributions on the Class A or Subordinated Certificate.
Section 4.07 CERTAIN MATTERS RELATING TO THE DETERMINATION OF
LIBOR.
Until all of the LIBOR Certificates are paid in full, the Trustee will
at all times retain at least four Reference Banks for the purpose of determining
LIBOR with respect to each Interest Determination Date. The Master Servicer
initially shall designate the Reference Banks. Each "REFERENCE BANK" shall be a
leading bank engaged in transactions in Eurodollar deposits in the international
Eurocurrency market, shall not control, be controlled by or be under common
control with, the Trustee and shall have an established place of business in
London. If any such Reference Bank should be unwilling or unable to act as such
or if the Master Servicer should terminate its appointment as Reference Bank,
the Master Servicer shall promptly appoint another Reference Bank. The Trustee
shall have no liability or responsibility to any Person for (i) the selection of
any Reference Bank for purposes of determining LIBOR or (ii) any inability to
retain at least four Reference Banks that is caused by circumstances beyond its
reasonable control.
The Pass-Through Rate for each Class of LIBOR Certificates for each
Interest Accrual Period shall be determined by the Trustee on each LIBOR
Determination Date so long as the LIBOR Certificates are outstanding on the
basis of LIBOR and the respective formulae appearing in footnotes corresponding
to the LIBOR Certificates in the table relating to the Certificates in the
Preliminary Statement. The Trustee shall not have any liability or
responsibility to any Person for its inability, following a good-faith
reasonable effort, to obtain quotations from the Reference Banks or to determine
the arithmetic mean referred to in the definition of LIBOR, all as provided for
in this Section 4.07 and the definition of LIBOR. The establishment of LIBOR and
each Pass-Through Rate for the LIBOR Certificates by the Trustee shall (in the
absence of manifest error) be final, conclusive and binding upon each Holder of
a Certificate and the Trustee.
Section 4.08 DISTRIBUTIONS AND ALLOCATION OF REALIZED LOSSES
TO THE REMIC I REGULAR INTERESTS, REMIC II
REGULAR INTERESTS AND REMIC III REGULAR
INTERESTS.
(I) On each Distribution Date, the following amounts, in the
following order of priority, shall be distributed by REMIC I to REMIC II on
account of the REMIC I Regular Interests or withdrawn from the Distribution
Account and distributed to the Holders of the Class R Certificates (in respect
of the Class R-I Interest), as the case may be:
With respect to the Group I Mortgage Loans:
(1)(i) to the Holders of REMIC I Regular Interest I-LT1 and REMIC I
Regular Interest I-LT1PF in an amount equal to (A) the Uncertificated Interest
for each REMIC I Regular Interest for such Distribution Date, plus (B) any
amounts in respect thereof remaining unpaid from previous Distribution Dates;
and
(ii) to the Holders of REMIC I Regular Interest I-LTP, on the
Distribution Date immediately following the expiration of the latest Prepayment
Charge as identified on the Prepayment Charge Schedule or any Distribution Date
thereafter until $100 has been distributed pursuant to this clause;
(2) to the Holders of REMIC I Regular Interest I-LT1 and REMIC I
Regular Interest I-LT1PF, in an amount equal to the remainder of the Available
Funds for such Distribution Date after the distributions made pursuant to clause
(1)(i) above, allocated as follows:
(a) to the Holders of REMIC I Regular Interest I-LT1, until the
Uncertificated Balance of REMIC I Regular Interest I-LT1 is
reduced to zero;
(b) to the Holders of REMIC I Regular Interest I-LT1PF, until the
Uncertificated Balance of REMIC I Regular Interest I-LT1PF is
reduced to zero; and
(c) any remaining amount to the Holders of the Class R
Certificates (in respect of the Class R-I Interest);
PROVIDED, HOWEVER, that for the first Distribution Date, such amounts
relating to the Initial Group I Mortgage Loans shall be allocated to
REMIC I Regular Interest I-LT1 and such amounts relating to the
Subsequent Group I Mortgage Loans shall be allocated to REMIC I Regular
Interest I-LT1PF.
With respect to the Group II Mortgage Loans:
(1) to the Holders of REMIC I Regular Interest I-LT2 and REMIC I
Regular Interest I-LT2PF in an amount equal to (A) the Uncertificated Interest
for each REMIC I Regular Interest for such Distribution Date, plus (B) any
amounts in respect thereof remaining unpaid from previous Distribution Dates;
and
(2) to the Holders of REMIC I Regular Interest I-LT2 and REMIC I
Regular Interest I-LT2PF, in an amount equal to the remainder of the Available
Funds for such Distribution Date after the distributions made pursuant to clause
(1) above, allocated as follows:
(a) to the Holders of REMIC I Regular Interest I-LT2, until the
Uncertificated Balance of REMIC I Regular Interest I-LT2 is
reduced to zero;
(b) to the Holders of REMIC I Regular Interest I-LT2PF, until the
Uncertificated Balance of REMIC I Regular Interest I-LT2PF is
reduced to zero; and
(c) any remaining amount to the Holders of the Class R
Certificates (in respect of the Class R-I Interest);
provided, however, that for the first Distribution Date, such amounts relating
to the Initial Group II Mortgage Loans shall be allocated to REMIC I Regular
Interest I-LT2 and such amounts relating to the Subsequent Group II Mortgage
Loans shall be allocated to REMIC I Regular Interest I-LT2PF.
On each Distribution Date, all amounts representing Prepayment Charges
in respect of the Mortgage Loans received during the related Prepayment Period
will be distributed by REMIC I to the Holders of REMIC I Regular Interest I-LTP.
The payment of the foregoing amounts to the Holders of REMIC I Regular Interest
I-LTP shall not reduce the Uncertificated Balance thereof.
(II) On each Distribution Date, the following amounts, in the
following order of priority, shall be distributed by REMIC II to REMIC III on
account of the REMIC II Regular Interests or withdrawn from the Distribution
Account and distributed to the Holders of the Class R Certificates (in respect
of the Class R-II Interest), as the case may be:
With respect to the Group I Mortgage Loans:
(A) to Holders of each of REMIC II Regular Interest I-I,
REMIC I Regular Interest P and REMIC II Regular
Interest I-1-A through I-40-B, pro rata, in an amount
equal to (A) Uncertificated Interest for such REMIC
II Regular Interests for such Distribution Date, plus
(B) any amounts payable in respect thereof remaining
unpaid from previous Distribution Dates;
(B) to the extent of amounts remaining after the
distributions made pursuant to clause (i) above,
payments of principal shall be allocated as follows:
first, to REMIC II Regular Interest I until the
Uncertificated Balance is reduced to zero and second,
to REMIC II Regular interests I-1-A through I-40-B
starting with the lowest numerical denomination until
the Uncertificated Balance of each such REMIC II
Regular Interest is reduced to zero, provided that,
for REMIC II Regular Interests with the same
numerical denomination, such payments of principal
shall be allocated pro rata between such REMIC II
Regular Interests, and second, to the extent of the
product of (a) any Overcollateralization Release
Amounts multiplied by (b) a fraction, the numerator
of which is the aggregate Scheduled Principal Balance
of the Group I Mortgage Loans and the denominator of
which is the aggregate Scheduled Principal Balance of
the Mortgage Loans, to REMIC II Regular Interest I
until the Uncertificated Balance of such REMIC II
Regular Interest is reduced to zero; and
(C) to the Holders of REMIC II Regular Interest P, (A) on
each Distribution Date, 100% of the amount paid in
respect of Prepayment Charges and (B) on the
Distribution Date immediately following the
expiration of the latest Prepayment Charge as
identified on the Prepayment Charge Schedule or any
Distribution Date thereafter until $100 has been
distributed pursuant to this clause.
With respect to the Group II Mortgage Loans:
(A) to Holders of each of REMIC II Regular Interest II
and REMIC II RegularInterest II-1-A through II-40-B,
pro rata, in an amount equal to (A) Uncertificated
Interest for such REMIC II Regular Interests for such
Distribution Date, plus (B) any amounts payable in
respect thereof remaining unpaid from previous
Distribution Dates;
(B) to the extent of amounts remaining after the
distributions made pursuant to clause (i) above,
payments of principal shall be allocated as follows:
first, to REMIC II Regular Interest II until the
Uncertificated Balance is reduced to zero and second,
to REMIC II Regular interests II-1-A through II-40-B
starting with the lowest numerical denomination until
the Uncertificated Balance of each such REMIC II
Regular Interest is reduced to zero, provided that,
for REMIC II Regular Interests with the same
numerical denomination, such payments of principal
shall be allocated pro rata between such REMIC II
Regular Interests, and second, to the extent of the
product of (a) any Overcollateralization Release
Amounts multiplied by (b) a fraction, the numerator
of which is the aggregate Scheduled Principal Balance
of the Group II Mortgage Loans and the denominator of
which is the aggregate Scheduled Principal Balance of
the Mortgage Loans, to REMIC II Regular Interest II
until the Uncertificated Balance of such REMIC II
Regular Interest is reduced to zero; and
(C) to the Holders of REMIC II Regular Interest P, on
each Distribution Date, 100% of the amount paid in
respect of Prepayment Charges.
(III) On each Distribution Date, the following amounts, in the
following order of priority, shall be distributed by REMIC III to REMIC IV on
account of the REMIC III Regular Interests or withdrawn from the Distribution
Account and distributed to the Holders of the Class R Certificates (in respect
of the Class R-III Interest), as the case may be:
(A) to the Holders of REMIC III Regular Interest LTIO, in
an amount equal to (A) accrued Uncertificated Interest for such REMIC
III Regular Interest for such Distribution Date, PLUS (B) any amounts
in respect thereof remaining unpaid from previous Distribution Dates.
(B) to Holders of REMIC III Regular Interest LTAA, REMIC
III Regular Interest LTAI1, REMIC III Regular Interest LTAII1, REMIC
III Regular Interest LTAII2, REMIC III Regular Interest LTAII3, REMIC
III Regular Interest LTM1, REMIC III Regular Interest LTM2, REMIC III
Regular Interest LTM3, REMIC III Regular Interest LTM4, REMIC III
Regular Interest LTM5, REMIC III Regular Interest LTM6, REMIC III
Regular Interest LTM7, REMIC III Regular Interest LTM8, REMIC III
Regular Interest LTM9, REMIC III Regular Interest LTM10, REMIC III
Regular Interest LTM11 and REMIC III Regular Interest LTZZ, on a PRO
RATA basis, in an amount equal to (A) the Uncertificated Interest for
such Distribution Date, plus (B) any amounts in respect thereof
remaining unpaid from previous Distribution Dates. Amounts payable as
Uncertificated Interest in respect of REMIC III Regular Interest LTZZ
shall be reduced and deferred when the REMIC III Overcollateralized
Amount is less than the REMIC III Overcollateralization Target Amount,
by the lesser of (x) the amount of such difference and (y) the Maximum
LTZZ Uncertificated Interest Deferral Amount and such amount will be
payable to the Holders of REMIC III Regular Interest LTAI1, REMIC III
Regular Interest LTAII1, REMIC III Regular Interest LTAII2, REMIC III
Regular Interest LTAII3, REMIC III Regular Interest LTM1, REMIC III
Regular Interest LTM2, REMIC III Regular Interest LTM3, REMIC III
Regular Interest LTM4, REMIC III Regular Interest LTM5, REMIC III
Regular Interest LTM6, REMIC III Regular Interest LTM7, REMIC III
Regular Interest LTM8, REMIC III Regular Interest LTM9, REMIC III
Regular Interest LTM10 and REMIC III Regular Interest LTM11 in the same
proportion as the Overcollateralization Increase Amount is allocated to
the Corresponding Certificates and the Uncertificated Balance of the
REMIC III Regular Interest LTZZ shall be increased by such amount;
(C) to the Holders of REMIC III Regular Interest LT1SUB,
REMIC III Regular Interest LT1GRP, REMIC III Regular Interest LT2SUB,
REMIC III Regular Interest LT2GRP and REMIC III Regular Interest LTXX,
on a PRO RATA basis, in an amount equal to (A) the Uncertificated
Interest for such Distribution Date, plus (B) any amounts in respect
thereof remaining unpaid from previous Distribution Dates;
(D) to the Holders of REMIC III Regular Interests, in an
amount equal to the remainder of the REMIC III Marker Allocation
Percentage of the Available Funds for such Distribution Date after the
distributions made pursuant to clause (a) above, allocated as follows:
(i) 98.00% of such remainder (other than amounts
payable under clause (iii) below) to the Holders of REMIC III
Regular Interest LTAA and REMIC III Regular Interest LTP,
until the Uncertificated Balance of such REMIC III Regular
Interests are reduced to zero; provided, however, that REMIC
III Regular Interest LTP shall not be reduced until the
Distribution Date immediately following the expiration of the
latest Prepayment Charge as identified on the Prepayment
Charge Schedule or any Distribution Date thereafter, at which
point such amount shall be distributed to REMIC III Regular
Interest LTP, until $100 has been distributed pursuant to this
clause;
(ii) 2.00% of such remainder (other than amounts
payable under clause (iii) below) first, to the Holders of
REMIC III Regular Interest LTAI1, REMIC III Regular Interest
LTAII1, REMIC III Regular Interest LTAII2, REMIC III Regular
Interest LTAII3, REMIC III Regular Interest LTM1, REMIC III
Regular Interest LTM2, REMIC III Regular Interest LTM3, REMIC
III Regular Interest LTM4, REMIC III Regular Interest LTM5,
REMIC III Regular Interest LTM6, REMIC III Regular Interest
LTM7, REMIC III Regular Interest LTM8, REMIC III Regular
Interest LTM9, REMIC III Regular Interest LTM10 and REMIC III
Regular Interest LTM11 of such REMIC III Regular Interests are
reduced to zero, 1.00% in the same proportion as principal
payments are allocated to the Corresponding Certificates, and
second, to the Holders of REMIC III Regular Interest LTZZ
(other than amounts payable under clause (iii) below), until
the Uncertificated Balance of such REMIC III Regular Interest
is reduced to zero; and
(iii) any remaining amount to the Holders of the
Class R Certificates (in respect of the Class R-III Interest);
PROVIDED, HOWEVER, that (i) 98.00% and (ii) 2.00% of any principal
payments that are attributable to an Overcollateralization Reduction Amount
shall be allocated to Holders of (i) REMIC III Regular Interest LTAA and REMIC
III Regular Interest LTP, in that order and (ii) REMIC III Regular Interest
LTZZ, respectively; provided, that REMIC III Regular Interest LTP shall not be
reduced until the Distribution Date immediately following the expiration of the
latest Prepayment Charge as identified on the Prepayment Charge Schedule or any
Distribution Date thereafter, at which point such amount shall be distributed to
REMIC III Regular Interest LTP, until $100 has been distributed pursuant to this
clause; and
(E) to the Holders of REMIC III Regular Interests, in an
amount equal to the remainder of the REMIC III Sub WAC Allocation
Percentage of Available Funds for such Distribution Date after the
distributions made pursuant to clause (b) above, such that
distributions of principal shall be deemed to be made to the REMIC III
Regular Interests first: so as to keep the Uncertificated Balance of
each REMIC III Regular Interest ending with the designation "GRP" equal
to 0.01% of the aggregate Stated Principal Balance of the Mortgage
Loans in the related Loan Group; second, to each REMIC III Regular
Interest ending with the designation "SUB," so that the Uncertificated
Balance of each such REMIC III Regular Interest is equal to 0.01% of
the excess of (x) the aggregate Stated Principal Balance of the
Mortgage Loans in the related Loan Group over (y) the current
Certificate Principal Balance of the Class A Certificates in the
related Loan Group (except that if any such excess is a larger number
than in the preceding distribution period, the least amount of
principal shall be distributed to such REMIC III Regular Interests such
that the REMIC III Subordinated Balance Ratio is maintained); and
third, any remaining principal to REMIC III Regular Interest LTXX.
Notwithstanding the priorities and amounts of distribution of funds
pursuant to this Section 4.08(I), actual distributions of the Available Funds
shall be made only in accordance with Section 4.02.
(F)(i) All Realized Losses on the Group I Mortgage Loans
shall be allocated by the Trustee on each Distribution Date, first to
REMIC I Regular Interest I-LT1 and REMIC I Regular Interest I-LT1PF,
until the Uncertificated Balance of each such REMIC I Regular Interest
has been reduced to zero; provided however, that with respect to the
first Distribution Date, all Realized Losses on the Initial Group I
Mortgage Loans shall be allocated to REMIC I Regular Interest I-LT1,
until the Uncertificated Balance thereof has been reduced to zero, and
all Realized Losses on the Subsequent Group I Mortgage Loans shall be
allocated to REMIC I Regular Interest I-LT1PF until the Uncertificated
Balance thereof has been reduced to zero. All Realized Losses on the
Group II Mortgage Loans shall be allocated by the Trustee on each
Distribution Date, first to REMIC I Regular Interest I-LT2 and REMIC I
Regular Interest I-LT2PF, until the Uncertificated Balance of each such
REMIC I Regular Interest has been reduced to zero; provided however,
that with respect to the first Distribution Date, all Realized Losses
on the Initial Group II Mortgage Loans shall be allocated to REMIC I
Regular Interest I-LT2, until the Uncertificated Balance thereof has
been reduced to zero, and all Realized Losses on the Subsequent Group
II Mortgage Loans shall be allocated to REMIC I Regular Interest
I-LT2PF until the Uncertificated Balance thereof has been reduced to
zero.
(ii) With respect to the REMIC II Regular Interests, all
Realized Losses on the Group I Loans shall be
allocated shall be allocated by the Trustee on each
Distribution Date first, to REMIC II Regular Interest
I until the Uncertificated Balance has been reduced
to zero, and second, to REMIC II Regular Interest
I-1-A through REMIC II Regular Interest I-40-B,
starting with the lowest numerical denomination until
such REMIC II Regular Interest has been reduced to
zero, provided that, for REMIC II Regular Interests
with the same numerical denomination, such Realized
Losses shall be allocated pro rata between such REMIC
II Regular Interests. All Realized Losses on the
Group II Loans shall be allocated on each
Distribution Date first, to REMIC II Regular Interest
II until the Uncertificated Balance has been reduced
to zero, and second, to REMIC II Regular Interest
II-1-A through REMIC II Regular Interest II-40-B,
starting with the lowest numerical denomination until
such REMIC II Regular Interest has been reduced to
zero, provided that, for REMIC II Regular Interests
with the same numerical denomination, such Realized
Losses shall be allocated pro rata between such REMIC
II Regular Interests.
(iii) The REMIC III Marker Allocation Percentage of all
Realized Losses on the Mortgage Loans shall be
allocated by the Trustee on each Distribution Date to
the following REMIC III Regular Interests in the
specified percentages, as follows: first, to
Uncertificated Interest payable to the REMIC III
Regular Interest LTAA and REMIC III Regular Interest
LTZZ up to an aggregate amount equal to the REMIC III
Interest Loss Allocation Amount, 98% and 2%,
respectively; second, to the Uncertificated Balances
of the REMIC III Regular Interest LTAA and REMIC III
Regular Interest LTZZ up to an aggregate amount equal
to the REMIC III Principal Loss Allocation Amount,
98% and 2%, respectively; third, to the
Uncertificated Balances of REMIC III Regular Interest
LTAA, REMIC III Regular Interest LTM11 and REMIC III
Regular Interest LTZZ, 98%, 1% and 1%, respectively,
until the Uncertificated Balance of REMIC III Regular
Interest LTM11 has been reduced to zero; fourth, to
the Uncertificated Balances of REMIC III Regular
Interest LTAA, REMIC III Regular Interest LTM10 and
REMIC III Regular Interest LTZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Balance of
REMIC III Regular Interest LTM10 has been reduced to
zero; fifth, to the Uncertificated Balances of REMIC
III Regular Interest LTAA, REMIC III Regular Interest
LTM9 and REMIC III Regular Interest LTZZ, 98%, 1% and
1%, respectively, until the Uncertificated Balance of
REMIC III Regular Interest LTM9 has been reduced to
zero; sixth, to the Uncertificated Balances of REMIC
III Regular Interest LTAA, REMIC III Regular Interest
LTM8 and REMIC III Regular Interest LTZZ, 98%, 1% and
1%, respectively, until the Uncertificated Balance of
REMIC III Regular Interest LTM8 has been reduced to
zero; seventh, to the Uncertificated Balances of
REMIC III Regular Interest LTAA, REMIC III Regular
Interest LTM7 and REMIC III Regular Interest LTZZ,
98%, 1% and 1%, respectively, until the
Uncertificated Balance of REMIC III Regular Interest
LTM7 has been reduced to zero; eighth, to the
Uncertificated Balances of REMIC III Regular Interest
LTAA, REMIC III Regular Interest LTM6 and REMIC III
Regular Interest LTZZ, 98%, 1% and 1%, respectively,
until the Uncertificated Balance of REMIC III Regular
Interest LTM6 has been reduced to zero; ninth, to the
Uncertificated Balances of REMIC III Regular Interest
LTAA, REMIC III Regular Interest LTM5 and REMIC III
Regular Interest LTZZ, 98%, 1% and 1%, respectively,
until the Uncertificated Balance of REMIC III Regular
Interest LTM5 has been reduced to zero; tenth, to the
Uncertificated Balances of REMIC III Regular Interest
LTAA, REMIC III Regular Interest LTM4 and REMIC III
Regular Interest LTZZ, 98%, 1% and 1%, respectively,
until the Uncertificated Balance of REMIC III Regular
Interest LTM4 has been reduced to zero; eleventh, to
the Uncertificated Balances of REMIC III Regular
Interest LTAA, REMIC III Regular Interest LTM3 and
REMIC III Regular Interest LTZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Balance of
REMIC III Regular Interest LTM3 has been reduced to
zero; twelfth, to the Uncertificated Balances of
REMIC III Regular Interest LTAA, REMIC III Regular
Interest LTM2 and REMIC III Regular Interest LTZZ,
98%, 1% and 1%, respectively, until the
Uncertificated Balance of REMIC III Regular Interest
LTM2 has been reduced to zero; and thirteenth, to the
Uncertificated Balances of REMIC III Regular Interest
LTAA, REMIC III Regular Interest LTM1 and REMIC III
Regular Interest LTZZ, 98%, 1% and 1%, respectively,
until the Uncertificated Balance of REMIC III Regular
Interest LTM1 has been reduced to zero.
(iv) The REMIC III Sub WAC Allocation Percentage of all
Realized Losses shall be applied after all
distributions have been made on each Distribution
Date: first, so as to keep the Uncertificated Balance
of each REMIC III Regular Interest ending with the
designation "GRP" equal to 0.01% of the aggregate
Stated Principal Balance of the Mortgage Loans in the
related Loan Group; second, to each REMIC III Regular
Interest ending with the designation "SUB," so that
the Uncertificated Balance of each such REMIC III
Regular Interest is equal to 0.01% of the excess of
(x) the aggregate Stated Principal Balance of the
Mortgage Loans in the related Loan Group over (y) the
current Certificate Principal Balance of the Class A
Certificates in the related Loan Group (except that
if any such excess is a larger number than in the
preceding distribution period, the least amount of
Realized Losses shall be applied to such REMIC III
Regular Interests such that the REMIC III
Subordinated Balance Ratio is maintained); and third,
any remaining Realized Losses shall be allocated to
REMIC III Regular Interest LTXX.
ARTICLE V
THE CERTIFICATES
Section 5.01 THE CERTIFICATES.
The Certificates shall be substantially in the forms attached hereto as
exhibits. The Certificates shall be issuable in registered form, in the minimum
denominations in the Preliminary Statement, integral multiples of $1.00 in
excess thereof (except that one Certificate in each Class may be issued in a
different amount that must exceed the applicable minimum denomination) and
aggregate denominations per Class set forth in the Preliminary Statement.
Subject to Section 9.02 respecting the final distribution on the
Certificates, on each Distribution Date, the Trustee shall make distributions to
each Certificateholder of record on the preceding Record Date either:
(x) by wire transfer in immediately available funds to
the account of the Holder at a bank or other entity having appropriate
facilities therefor, if the Holder has so notified the Trustee at least
five (5) Business Days before the related Record Date; and
(y) by check mailed by first class mail to the
Certificateholder at the address of such holder appearing in the
Certificate Register.
The Trustee shall execute the Certificates by manual or facsimile
signature of an authorized officer. Certificates bearing the manual or facsimile
signatures of individuals who were, at the time such signatures were affixed,
authorized to sign on behalf of the Trustee shall bind the Trustee,
notwithstanding that such individuals or any of them have ceased to be so
authorized before the countersignature and delivery of any such Certificates or
did not hold such offices at the date of such Certificate. No Certificate shall
be entitled to any benefit under this Agreement, or be valid for any purpose,
unless countersigned by the Trustee by manual signature, and such
countersignature upon any Certificate shall be conclusive evidence, and the only
evidence, that such Certificate has been duly executed and delivered hereunder.
All Certificates shall be dated the date of their countersignature. On the
Closing Date, the Trustee shall countersign the Certificates to be issued at the
direction of the Depositor, or any affiliate thereof.
The Depositor shall provide to the Trustee, on a continuous basis, an
adequate inventory of Certificates to facilitate transfers.
Section 5.02 CERTIFICATE REGISTER; REGISTRATION OF TRANSFER
AND EXCHANGE OF CERTIFICATES.
(a) The Trustee shall maintain, in accordance with Section 5.06, a
Certificate Register for the Trust Fund in which, subject to subsections (b) and
(c) below and to such reasonable regulations as it may prescribe, the Trustee
shall provide for the registration of Certificates and of transfers and
exchanges of Certificates as herein provided. Upon surrender for registration of
transfer of any Certificate, the Trustee shall execute and deliver, in the name
of the designated transferee or transferees, one or more new Certificates of the
same Class and aggregate Percentage Interest.
At the option of a Certificateholder, Certificates may be exchanged for
other Certificates of the same Class in authorized denominations and evidencing
the same aggregate Percentage Interest upon surrender of the Certificates to be
exchanged at the office or agency of the Trustee. Whenever any Certificates are
so surrendered for exchange, the Trustee shall execute, countersign and deliver
the Certificates that the Certificateholder making the exchange is entitled to
receive. A written instrument of transfer in form satisfactory to the Trustee
duly executed by the Holder or his attorney duly authorized in writing shall
accompany every Certificate presented or surrendered for registration of
transfer or exchange.
No service charge to the Certificateholders shall be made for any
registration of transfer or exchange of Certificates, but payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any transfer or exchange of Certificates may be required.
All Certificates surrendered for registration of transfer or exchange
shall be cancelled and subsequently destroyed by the Trustee in accordance with
the Trustee's customary procedures.
(b) No transfer of a Private Certificate shall be made unless such
transfer is made pursuant to an effective registration statement under the
Securities Act and any applicable state securities laws or is exempt from the
registration requirements under said Act and any applicable state securities
laws. In the event that such a transfer of a Private Certificate is to be made
without registration or qualification (other than in connection with (i) the
initial transfer of any such Certificate by the Depositor to an Affiliate
thereof, (ii) the transfer of any such Class C, Class P or Residual Certificate
to the applicable issuer or indenture trustee under the Indenture or (iii) a
transfer of any such Class C, Class P or Residual Certificate from the
applicable issuer or indenture trustee under the Indenture to the Depositor or
an Affiliate thereof), but in reliance on an exemption from the Securities Act
and any applicable state securities laws, to assure compliance with the
Securities Act and any applicable state securities laws, the Certificateholder
desiring to effect the transfer shall certify to the Trustee in writing the
facts surrounding the transfer in substantially the form of Exhibit J (the
"TRANSFEROR CERTIFICATE") and either (i) deliver to the Trustee a letter in
substantially the form of Exhibit L (the "RULE 144A LETTER") or (ii) deliver to
the Trustee at the expense of the transferor an Opinion of Counsel that the
transfer may be made without registration under the Securities Act. The
Depositor shall provide to any Holder of a Private Certificate and any
prospective transferee designated by the Holder of a Private Certificate,
information regarding the related Certificates and the Mortgage Loans and any
other information necessary to satisfy the condition to eligibility in Rule
144A(d)(4) for transfer of the Certificate without registration thereof under
the Securities Act pursuant to the registration exemption provided by Rule 144A.
The Trustee and the Master Servicer shall cooperate with the Depositor in
providing the Rule 144A information referenced in the preceding sentence,
including providing to the Depositor such information regarding the
Certificates, the Mortgage Loans and other matters regarding the Trust Fund the
Depositor reasonably requests to meet its obligation under the preceding
sentence. Each Holder of a Private Certificate desiring to effect a transfer
shall, and does hereby agree to, indemnify the Trustee, the NIM Insurer, the
Depositor, the Seller, and the Master Servicer against any liability that may
result if the transfer is not so exempt or is not made in accordance with such
federal and state laws.
No transfer of an ERISA-Restricted Certificate shall be made unless the
Trustee and the NIM Insurer shall have received either:
(i) a representation from the transferee of such
Certificate acceptable to and in form and substance satisfactory to the
Trustee and the NIM Insurer (if the Certificate is a Private
Certificate, the requirement is satisfied only by the Trustee's receipt
of a representation letter from the transferee substantially in the
form of Exhibit L, and if the Certificate is a Residual Certificate,
the requirement is satisfied only by the Trustee's receipt of a
Transfer Affidavit from the transferee substantially in the form of
Exhibit I), to the effect that (x) the transferee is not an employee
benefit plan or arrangement subject to Section 406 of ERISA or a plan
subject to Section 4975 of the Code, or a Person acting on behalf of
any such plan or arrangement or using the assets of any such plan or
arrangement to effect the transfer, or (y) if the ERISA-Restricted
Certificate is not a Class C or Class R Certificate and has been the
subject of an ERISA-Qualifying Underwriting and the purchaser is an
insurance company, a representation that the purchaser is an insurance
company that is purchasing such Certificates with funds contained in an
"insurance company general account" (as such term is defined in Section
V(e) of Prohibited Transaction Class Exemption 95-60 ("PTCE 95-60") and
that the purchase and holding of such Certificates are covered under
Sections I and III of PTCE 95-60; or
(ii) in the case of any ERISA-Restricted Certificate
presented for registration in the name of an employee benefit plan
subject to ERISA, or a plan or arrangement subject to Section 4975 of
the Code (or comparable provisions of any subsequent enactments), or a
trustee of any such plan or any other Person acting on behalf of any
such plan or arrangement or using such plan's or arrangement's assets,
an Opinion of Counsel satisfactory to the Trustee, the NIM Insurer and
the Master Servicer, which Opinion of Counsel shall not be an expense
of the Trustee, the NIM Insurer, the Master Servicer or the Trust Fund,
addressed to the Trustee, to the effect that the purchase or holding of
such ERISA-Restricted Certificate will not result in a nonexempt
prohibited transaction under ERISA or Section 4975 of the Code and will
not subject the Trustee, the NIM Insurer or the Master Servicer to any
obligation in addition to those expressly undertaken in this Agreement
or to any liability.
For purposes of the preceding sentence, neither an Opinion of Counsel nor any
certification shall be required in connection with (i) the initial transfer of
any such Certificate by the Depositor to an Affiliate thereof, (ii) the transfer
of any such Class C, Class P or Residual Certificate to the applicable issuer or
indenture trustee under the Indenture or (iii) a transfer of any such Class C,
Class P or Residual Certificate from the issuer or indenture trustee under the
Indenture to the Depositor or an Affiliate thereof (in which case, the Depositor
or any Affiliate thereof shall have deemed to have represented that it is not
using the assets of any plan or arrangement subject to Section 406 of ERISA or
plan subject to Section 4975 of the Code) and the Trustee shall be entitled to
conclusively rely upon a representation (which, upon the request of the Trustee,
shall be a written representation) from the Depositor of the status of such
transferee as an Affiliate of the Depositor. In addition, with respect to
transfers of an ERISA-Restricted Certificate (that is not a Residual
Certificate) other than as described in the preceding sentence, if the
representation letter or Opinion of Counsel referred to in the preceding
sentence is not furnished, the appropriate representation in clause (i) shall be
deemed to have been made to the Trustee by the transferee's (including an
initial acquirer's) acceptance of the ERISA-Restricted Certificates. If any such
representation in the preceding sentences is violated, or any attempt to
transfer to a plan or arrangement subject to Section 406 of ERISA or a plan
subject to Section 4975 of the Code, or a Person acting on behalf of any such
plan or arrangement or using the assets of any such plan or arrangement, is made
without the Opinion of Counsel, the attempted transfer or acquisition shall be
void.
Each beneficial owner of a Subordinated Certificate (other than a Class
M-11 Certificate) or any interest therein shall be deemed to have represented,
by virtue of its acquisition or holding of that certificate or interest therein,
that either (i) it is not a plan or arrangement subject to Section 406 of ERISA
or a plan subject to Section 4975 of the Code, or a Person acting on behalf of
any such plan or arrangement or using the assets of any such plan or
arrangement, (ii) it has acquired and is holding such certificate in reliance on
the Underwriter's Exemption, and that it understands that there are certain
conditions to the availability of the Underwriter's Exemption, including that
such certificate must be rated, at the time of purchase, not lower than "BBB-"
(or its equivalent) by S&P, Fitch or Xxxxx'x, and such certificate is so rated,
that it will represent that it is an "accredited investor" as defined in Rule
501(a)(1) of Regulation D issued under the Securities Act and will obtain a
representation from any transferee that such transferee is an accredited
investor so long as it is required to obtain a representation regarding
compliance with the Securities Act or (iii) (1) it is an insurance company, (2)
the source of funds used to acquire or hold the certificate or interest therein
is an "insurance company general account," as such term is defined in PTCE
95-60, and (3) the conditions in Sections I and III of PTCE 95-60 have been
satisfied.
To the extent permitted under applicable law (including ERISA), the
Trustee shall not be liable to any Person for any registration of transfer of
any ERISA-Restricted Certificate that is in fact not permitted by this Section
5.02(b) or for making any payments due on such Certificate to the Holder thereof
or taking any other action with respect to such Holder under this Agreement so
long as the transfer was registered by the Trustee in accordance with the
foregoing requirements.
(c) Each Person who has or who acquires any Ownership Interest in
a Residual Certificate shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the following provisions, and
the rights of each Person acquiring any Ownership Interest in a Residual
Certificate are expressly subject to the following provisions:
(i) Each Person holding or acquiring any Ownership
Interest in a Residual Certificate shall be a Permitted Transferee and
shall promptly notify the Trustee (with a copy of any such notice to
the NIM Insurer) of any change or impending change in its status as a
Permitted Transferee.
(ii) No Ownership Interest in a Residual Certificate may
be registered on the Closing Date or thereafter transferred, and the
Trustee shall not register the Transfer of any Residual Certificate
unless, in addition to the certificates required to be delivered to the
Trustee under subparagraph (b) above, the Trustee shall have been
furnished with an affidavit (a copy of which shall be provided to the
NIM Insurer) (a "TRANSFER AFFIDAVIT") of the initial owner or the
proposed transferee in the form of Exhibit I (subject to the
limitations with respect thereto as set forth in Section 5.02(b)).
(iii) Subject to the limitations set forth in Section
5.02(b), each Person holding or acquiring any Ownership Interest in a
Residual Certificate shall agree:
(A) to obtain a Transfer Affidavit from any
other Person to whom such Person attempts to Transfer its
Ownership Interest in a Residual Certificate;
(B) to obtain a Transfer Affidavit from any
Person for whom such Person is acting as nominee, trustee or
agent in connection with any Transfer of a Residual
Certificate; and
(C) not to Transfer its Ownership Interest in a
Residual Certificate or to cause the Transfer of an Ownership
Interest in a Residual Certificate to any other Person if it
has actual knowledge that such Person is not a Permitted
Transferee.
(iv) Any attempted or purported Transfer of any Ownership
Interest in a Residual Certificate in violation of this Section 5.02(c)
shall be absolutely null and void and shall vest no rights in the
purported Transferee. If any purported transferee shall become a Holder
of a Residual Certificate in violation of this Section 5.02(c), then
the last preceding Permitted Transferee shall be restored to all rights
as Holder thereof retroactive to the date of registration of Transfer
of such Residual Certificate. The Trustee shall not be liable to any
Person for any registration of Transfer of a Residual Certificate that
is in fact not permitted by Section 5.02(b) and this Section 5.02(c) or
for making any payments due on such Certificate to the Holder thereof
or taking any other action with respect to such Holder under this
Agreement so long as the Transfer was registered after receipt of the
related Transfer Affidavit, Transferor Certificate and either the Rule
144A Letter or the Investment Letter. The Trustee shall be entitled but
not obligated to recover from any Holder of a Residual Certificate that
was in fact not a Permitted Transferee at the time it became a Holder
or, at such subsequent time as it became other than a Permitted
Transferee, all payments made on such Residual Certificate at and after
either such time. Any such payments so recovered by the Trustee shall
be paid and delivered by the Trustee to the last preceding Permitted
Transferee of such Certificate.
(v) The Depositor shall use its best efforts to make
available, upon receipt of written request from the Trustee, all
information necessary to compute any tax imposed under Section 860E(e)
of the Code as a result of a Transfer of an Ownership Interest in a
Residual Certificate to any Holder who is not a Permitted Transferee.
The restrictions on Transfers of a Residual Certificate in this Section
5.02(c) shall cease to apply (and the applicable portions of the legend on a
Residual Certificate may be deleted) with respect to Transfers occurring after
delivery to the Trustee of an Opinion of Counsel, which Opinion of Counsel shall
not be an expense of the Trust Fund, the Trustee, the Seller, the NIM Insurer or
the Master Servicer, to the effect that the elimination of such restrictions
will not cause the Trust Fund hereunder to fail to qualify as a REMIC at any
time that the Certificates are outstanding or result in the imposition of any
tax on the Trust Fund, a Certificateholder or any other Person. The Opinion of
Counsel shall be accompanied by written notification from each Rating Agency
that the removal of the restriction will not cause the Rating Agency to
downgrade its ratings of the Certificates. Each Person holding or acquiring any
Ownership Interest in a Residual Certificate hereby consents to any amendment of
this Agreement that, based on an Opinion of Counsel furnished to the Trustee, is
reasonably necessary (a) to ensure that the record ownership of, or any
beneficial interest in, a Residual Certificate is not transferred, directly or
indirectly, to a Person that is not a Permitted Transferee and (b) to provide
for a means to compel the Transfer of a Residual Certificate that is held by a
Person that is not a Permitted Transferee to a Holder that is a Permitted
Transferee.
(d) The preparation and delivery of all certificates and opinions
referred to above in this Section 5.02 in connection with transfer shall be at
the expense of the parties to such transfers.
(e) Except as provided below, the Book-Entry Certificates shall at
all times remain registered in the name of the Depository or its nominee and at
all times:
(i) registration of the Certificates may not be
transferred by the Trustee except to another Depository;
(ii) the Depository shall maintain book-entry records with
respect to the Certificate Owners and with respect to ownership and
transfers of such Book-Entry Certificates;
(iii) ownership and transfers of registration of the
Book-Entry Certificates on the books of the Depository shall be
governed by applicable rules established by the Depository;
(iv) the Depository may collect its usual and customary
fees, charges, and expenses from its Depository Participants;
(v) the Trustee shall deal with the Depository,
Depository Participants and indirect participating firms as
representatives of the Certificate Owners of the Book-Entry
Certificates for purposes of exercising the rights of holders under
this Agreement, and requests and directions for and votes of such
representatives shall not be deemed to be inconsistent if they are made
with respect to different Certificate Owners; and
(vi) the Trustee may rely and shall be fully protected in
relying upon information furnished by the Depository with respect to
its Depository Participants and furnished by the Depository
Participants with respect to indirect participating firms and persons
shown on the books of such indirect participating firms as direct or
indirect Certificate Owners.
All transfers by Certificate Owners of Book-Entry Certificates shall be
made in accordance with the procedures established by the Depository Participant
or brokerage firm representing the Certificate Owner. Each Depository
Participant shall only transfer Book-Entry Certificates of Certificate Owners it
represents or of brokerage firms for which it acts as agent in accordance with
the Depository's normal procedures.
If (x)
(i) the Depository or the Depositor advises the Trustee
in writing that the Depository is no longer willing or able to properly
discharge its responsibilities as Depository, and
(ii) the Trustee or the Depositor is unable to locate a
qualified successor, or
(y) after the occurrence of an Event of Default, Certificate
Owners representing at least 51% of the Certificate Balance of the Book-Entry
Certificates together advise the Trustee and the Depository through the
Depository Participants in writing that the continuation of a book-entry system
through the Depository is no longer in the best interests of the Certificate
Owners,
then the Trustee shall notify all Certificate Owners, through the Depository, of
the occurrence of any such event and of the availability of definitive,
fully-registered Certificates (the "DEFINITIVE CERTIFICATES") to Certificate
Owners requesting the same. Upon surrender to the Trustee of the related Class
of Certificates by the Depository, accompanied by the instructions from the
Depository for registration, the Trustee shall issue the Definitive
Certificates. None of the Master Servicer, the Depositor or the Trustee shall be
liable for any delay in delivery of such instruction, and each may conclusively
rely on, and shall be protected in relying on, such instructions. The Master
Servicer shall provide the Trustee with an adequate inventory of certificates to
facilitate the issuance and transfer of Definitive Certificates. Upon the
issuance of Definitive Certificates, all references herein to obligations
imposed upon or to be performed by the Depository shall be deemed to be imposed
upon and performed by the Trustee, to the extent applicable with respect to such
Definitive Certificates, and the Trustee shall recognize the Holders of the
Definitive Certificates as Certificateholders hereunder; provided, that the
Trustee shall not by virtue of its assumption of such obligations become liable
to any party for any act or failure to act of the Depository.
Section 5.03 MUTILATED, DESTROYED, LOST OR STOLEN
CERTIFICATES.
If (a) any mutilated Certificate is surrendered to the Trustee, or (b)
the Trustee receives evidence to its satisfaction of the destruction, loss or
theft of any Certificate and the Master Servicer, the NIM Insurer and the
Trustee receive the security or indemnity required by them to hold each of them
harmless, then, in the absence of notice to the Trustee that the Certificate has
been acquired by a Protected Purchaser, and if the requirements of Section 8-406
of the UCC are met and subject to Section 8-405 of the UCC, the Trustee shall
execute, countersign and deliver, in exchange for or in lieu of any mutilated,
destroyed, lost or stolen Certificate, a new Certificate of like Class, tenor
and Percentage Interest. In connection with the issuance of any new Certificate
under this Section 5.03, the Trustee may require the payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of the Trustee)
connected therewith. Any replacement Certificate issued pursuant to this Section
5.03 shall constitute complete and indefeasible evidence of ownership, as if
originally issued, whether or not the lost, stolen or destroyed Certificate is
found at any time.
Section 5.04 PERSONS DEEMED OWNERS.
The Master Servicer, the Trustee, the NIM Insurer and any agent of the
Master Servicer or the Trustee may treat the Person in whose name any
Certificate is registered as the owner of such Certificate for the purpose of
receiving distributions as provided in this Agreement and for all other purposes
whatsoever, and none of the Master Servicer, the Trustee, the NIM Insurer or any
agent of the Master Servicer or the Trustee shall be affected by any notice to
the contrary.
Section 5.05 ACCESS TO LIST OF CERTIFICATEHOLDERS' NAMES AND
ADDRESSES.
If three or more Certificateholders and/or Certificate Owners (a)
request such information in writing from the Trustee, (b) state that those
Certificateholders and/or Certificate Owners desire to communicate with other
Certificateholders and/or Certificate Owners with respect to their rights under
this Agreement or under the Certificates and (c) provide a copy of the
communication that those Certificateholders and/or Certificate Owners propose to
transmit, or if the Depositor or Master Servicer requests such information in
writing from the Trustee, then the Trustee shall, within ten (10) Business Days
after the receipt of the request, provide the Depositor, the Master Servicer or
those Certificateholders and/or Certificate Owners at the recipients' expense
the most recent list of the Certificateholders of the Trust Fund held by the
Trustee. The Depositor and every Certificateholder, by receiving and holding a
Certificate, agree that the Trustee shall not be held accountable because of the
disclosure of any such information as to the list of the Certificateholders
and/or Certificate Owners hereunder, regardless of the source from which the
information was derived.
Section 5.06 MAINTENANCE OF OFFICE OR AGENCY.
The Trustee will maintain at its expense an office or agency in the
United States. Currently, that office is located at DB Services Tennessee, 000
Xxxxxxxxx Xxxx Xxxx, Xxxxxxxxx, Xxxxxxxxx 00000-0000, Attention: Transfer Unit,
where Certificates may be surrendered for registration of transfer or exchange.
The Trustee will give prompt written notice to the Certificateholders of any
change in the location of its office or agency.
ARTICLE VI
THE DEPOSITOR AND THE MASTER SERVICER
Section 6.01 RESPECTIVE LIABILITIES OF THE DEPOSITOR AND THE
MASTER SERVICER.
The Depositor and the Master Servicer shall each be liable in
accordance herewith only to the extent of the obligations specifically and
respectively imposed upon and undertaken by them herein.
Section 6.02 MERGER OR CONSOLIDATION OF THE DEPOSITOR OR THE
MASTER SERVICER.
The Depositor and the Master Servicer will each keep in full effect its
existence, rights and franchises as a corporation or federal savings bank, as
the case may be, under the laws of the United States or under the laws of one of
the states thereof and will each obtain and preserve its qualification to do
business as a foreign corporation in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this Agreement, or any of the Mortgage Loans and to perform
its respective duties under this Agreement.
Any Person into which the Depositor or the Master Servicer may be
merged or consolidated, or any Person resulting from any merger or consolidation
to which the Depositor or the Master Servicer shall be a party, or any person
succeeding to the business of the Depositor or the Master Servicer, shall be the
successor of the Depositor or the Master Servicer, as the case may be,
hereunder, without the execution or filing of any paper or any further act on
the part of any of the parties hereto, anything herein to the contrary
notwithstanding. The successor or surviving Person to the Master Servicer must
be qualified to sell mortgage loans to, and to service mortgage loans on behalf
of, FNMA or FHLMC.
Section 6.03 LIMITATION ON LIABILITY OF THE DEPOSITOR, THE
SELLER, THE MASTER SERVICER, AND OTHERS.
None of the Depositor, the Seller, the Master Servicer, the NIM Insurer
or any of the directors, officers, employees, or agents of the Depositor, the
Seller, the NIM Insurer, or the Master Servicer shall be liable to the
Certificateholders for any action taken or for refraining from taking any action
in good faith pursuant to this Agreement, or for errors in judgment. This
provision shall not protect the Depositor, the Seller, the Master Servicer, or
any such person against any breach of representations or warranties made by it
herein or protect the Depositor, the Seller, the Master Servicer, or any such
person from any liability that would otherwise be imposed for willful
misfeasance, bad faith, or gross negligence in the performance of duties or
because of reckless disregard of obligations and duties hereunder.
The Depositor, the Seller, the Master Servicer, the NIM Insurer and any
director, officer, employee, or agent of the Depositor, the Seller, the NIM
Insurer, or the Master Servicer may rely in good faith on any document of any
kind PRIMA FACIE properly executed and submitted by any Person respecting any
matters arising hereunder.
The Depositor, the NIM Insurer, the Seller, the Master Servicer and any
director, officer, employee, or agent of the Depositor, the Seller, the NIM
Insurer or the Master Servicer shall be indemnified by the Trust Fund for any
loss, liability, or expense incurred in connection with any audit, controversy,
or judicial proceeding relating to a governmental taxing authority or any legal
action relating to this Agreement or the Certificates, other than any loss,
liability, or expense related to any specific Mortgage Loans (except any loss,
liability, or expense otherwise reimbursable pursuant to this Agreement) and any
loss, liability, or expense incurred because of willful misfeasance, bad faith,
or gross negligence in the performance of duties hereunder or because of
reckless disregard of duties hereunder.
None of the Depositor, the NIM Insurer, the Seller, or the Master
Servicer shall be under any obligation to appear in, prosecute or defend any
legal action that is not incidental to its respective duties hereunder and which
in its opinion may involve it in any expense or liability. Any of the Depositor,
the NIM Insurer, the Seller, or the Master Servicer may in its discretion
undertake any such legal action, in its own name or the name of the Trustee, the
Depositor, the Certificateholders, or any of them, that it may deem appropriate
in respect of this Agreement and the rights and duties of the parties hereto and
interests of the Trustee and the Certificateholders hereunder or with respect to
the Mortgage Loans, including, without limitation, any rights or causes of
action arising out of the origination of the Mortgage Loans. In such event, the
legal expenses and costs of the action and any liability resulting from it shall
be expenses, costs and liabilities of the Trust Fund, and the Depositor, the NIM
Insurer, the Seller, and the Master Servicer shall be entitled to be reimbursed
therefor out of the Certificate Account.
Section 6.04 LIMITATION ON RESIGNATION OF THE MASTER SERVICER.
The Master Servicer shall not resign from the obligations hereby
imposed on it except (a) upon appointment of a successor servicer that is
reasonably acceptable to the Trustee and the NIM Insurer and receipt by the
Trustee of a letter from each Rating Agency that the resignation and appointment
will not result in a downgrading of the rating of any of the Certificates or (b)
upon determination that its duties hereunder are no longer permissible under
applicable law. Any such determination under clause (b) permitting the
resignation of the Master Servicer shall be evidenced by an Opinion of Counsel
to that effect delivered to the Trustee. No such resignation shall become
effective until the Trustee or a successor Master Servicer shall have assumed
the Master Servicer's obligations hereunder.
Section 6.05 INSPECTION.
The Master Servicer, in its capacity as Master Servicer, shall afford
the Trustee and the NIM Insurer, upon reasonable advance notice, during normal
business hours, access to all records maintained by the Master Servicer in
respect of its rights and obligations hereunder and access to officers of the
Master Servicer responsible for such obligations. Upon request, the Master
Servicer shall furnish to the Trustee and the NIM Insurer its most recent
publicly available financial statements and any other information relating to
its capacity to perform its obligations under this Agreement reasonably
requested by the NIM Insurer.
ARTICLE VII
DEFAULT
Section 7.01 EVENTS OF DEFAULT.
"EVENT OF DEFAULT," wherever used herein, means any one of the
following events:
(a) any failure by the Master Servicer to deposit in the
Certificate Account or remit to the Trustee any payment (other than a payment
required to be made under Section 4.01) required to be made by it under this
Agreement, which failure continues unremedied for five days after the date on
which written notice of the failure has been given to the Master Servicer by the
Trustee, the NIM Insurer, or the Depositor, or to the Master Servicer, the NIM
Insurer, and the Trustee by the Holders of Certificates of any Class evidencing
not less than 25% of the aggregate Percentage Interests of the Class; or
(b) any failure by the Master Servicer to observe or perform in
any material respect any other of the covenants or agreements on the part of the
Master Servicer contained in this Agreement, which failure materially affects
the rights of Certificateholders and continues unremedied for a period of sixty
(60) days after the date on which written notice of such failure shall have been
given to the Master Servicer by the Trustee, the NIM Insurer, or the Depositor,
or to the Master Servicer, the NIM Insurer, and the Trustee by the Holders of
Certificates of any Class evidencing not less than 25% of the Percentage
Interests of the Class; provided that the sixty day cure period shall not apply
to the initial delivery of the Mortgage File for Delayed Delivery Mortgage Loans
nor the failure to repurchase or substitute in lieu thereof; or
(c) a decree or order of a court or agency or supervisory
authority having jurisdiction in the premises for the appointment of a receiver,
conservator or liquidator in any insolvency, readjustment of debt, marshalling
of assets and liabilities or similar proceedings, or for the winding-up or
liquidation of its affairs, shall have been entered against the Master Servicer
and such decree or order shall have remained in force undischarged or unstayed
for a period of sixty (60) consecutive days; or
(d) the Master Servicer shall consent to the appointment of a
receiver, conservator or liquidator in any insolvency, readjustment of debt,
marshalling of assets and liabilities, or similar proceedings of or relating to
the Master Servicer or all or substantially all of the property of the Master
Servicer; or
(e) the Master Servicer shall admit in writing its inability to
pay its debts generally as they become due, file a petition to take advantage
of, or commence a voluntary case under, any applicable insolvency or
reorganization statute, make an assignment for the benefit of its creditors, or
voluntarily suspend payment of its obligations; or
(f) the Master Servicer shall fail (i) to make an Advance on the
Master Servicer Advance Date or (ii) to reimburse in full the Trustee within two
days of the Master Servicer Advance Date for any Advance made by the Trustee
pursuant to Section 4.01(b).
If an Event of Default described in clauses (a) through (f) of this
Section 7.01 shall occur, then, and in each and every such case, so long as such
Event of Default shall not have been remedied, the Trustee may, or at the
direction of the NIM Insurer or the Holders of Certificates of any Class
evidencing not less than 66(2)/3% of the Percentage Interests of the Class, the
Trustee shall by notice in writing to the Master Servicer (with a copy to each
Rating Agency), terminate all of the rights and obligations of the Master
Servicer under this Agreement and in the Mortgage Loans and the proceeds
thereof, other than its rights as a Certificateholder hereunder. On and after
the receipt by the Master Servicer of such written notice, all authority and
power of the Master Servicer hereunder, whether with respect to the Mortgage
Loans or otherwise, shall pass to and be vested in the Trustee. The Trustee
shall make any Advance that the Master Servicer failed to make, whether or not
the obligations of the Master Servicer have been terminated pursuant to this
Section.
The Trustee is hereby authorized and empowered to execute and deliver,
on behalf of the Master Servicer, as attorney-in-fact or otherwise, any
documents and other instruments, and to do or accomplish all other acts or
things necessary or appropriate to effect the purposes of such notice of
termination, whether to complete the transfer and endorsement or assignment of
the Mortgage Loans and related documents, or otherwise. Unless expressly
provided in such written notice, no such termination shall affect any obligation
of the Master Servicer to pay amounts owed pursuant to Article VIII. The Master
Servicer agrees to cooperate with the Trustee in effecting the termination of
the Master Servicer's responsibilities and rights hereunder, including the
transfer to the Trustee of all cash amounts that shall at the time be credited
to the Certificate Account, or thereafter be received with respect to the
Mortgage Loans. If the Master Servicer fails to make any Advance required under
Section 4.01 of this Agreement, thereby triggering an Event of Default described
in clause (f) of this Section 7.01, the Trustee shall make such Advance on that
Distribution Date.
Notwithstanding any termination of the activities of the Master
Servicer hereunder, the Master Servicer shall be entitled to receive, out of any
late collection of a Scheduled Payment on a Mortgage Loan that was due before
the notice terminating the Master Servicer's rights and obligations as Master
Servicer hereunder and received after the notice, that portion thereof to which
the Master Servicer would have been entitled pursuant to Sections 3.09(a)(i)
through (v) and (vii), and any other amounts payable to the Master Servicer
hereunder the entitlement to which arose before the termination of its
activities hereunder.
Section 7.02 TRUSTEE TO ACT; APPOINTMENT OF SUCCESSOR.
On and after the time the Master Servicer receives a notice of
termination pursuant to Section 7.01, the Trustee shall, subject to and to the
extent provided in Section 3.05, be the successor to the Master Servicer in its
capacity as Master Servicer under this Agreement and the transactions provided
for herein and shall be subject to all the responsibilities, duties and
liabilities (other than any liabilities incurred by the Master Servicer prior to
its termination hereunder) relating thereto placed on the Master Servicer by the
terms hereof and applicable law, including the obligation to make Advances
pursuant to Section 4.01. As compensation therefor, the Trustee shall be
entitled to all funds relating to the Mortgage Loans that the Master Servicer
would have been entitled to charge to the Certificate Account or Distribution
Account if the Master Servicer had continued to act hereunder.
Notwithstanding the foregoing, if the Trustee has become the successor
to the Master Servicer in accordance with Section 7.01, the Trustee may, if it
shall be unwilling to so act, or shall, if it is prohibited by applicable law
from making Advances pursuant to Section 4.01 or if it is otherwise unable to so
act, appoint, or petition a court of competent jurisdiction to appoint, any
established mortgage loan servicing institution reasonably acceptable to the NIM
Insurer (as evidenced by the prior written consent of the NIM Insurer), the
appointment of which does not adversely affect the then current rating of the
Certificates and the NIM Insurer guaranteed notes by each Rating Agency, as the
successor to the Master Servicer hereunder in the assumption of all or any part
of the obligations of the Master Servicer hereunder.
Any successor to the Master Servicer shall be an institution that is a
FNMA and FHLMC approved seller/servicer in good standing, that has a net worth
of at least $15,000,000, that is willing to service the Mortgage Loans and that
executes and delivers to the Depositor and the Trustee an agreement accepting
such delegation and assignment, containing an assumption by it of the rights and
obligations of the Master Servicer (other than liabilities of the Master
Servicer under Section 6.03 incurred before termination of the Master Servicer
under Section 7.01), with like effect as if originally named as a party to this
Agreement; provided, that each Rating Agency acknowledges that its rating of the
Certificates in effect immediately before the assignment and delegation will not
be qualified or reduced as a result of the assignment and delegation.
Pending appointment of a successor to the Master Servicer hereunder,
the Trustee, unless the Trustee is prohibited by law from so acting, shall,
subject to Section 3.05, act in such capacity as hereinabove provided. In
connection with such appointment and assumption, the Trustee may make such
arrangements for the compensation of the successor out of payments on Mortgage
Loans as it and the successor shall agree. No such compensation shall exceed the
Master Servicing Fee Rate. The Trustee and the successor shall take any action,
consistent with this Agreement, necessary to effectuate the succession.
Neither the Trustee nor any other successor Master Servicer shall be
deemed to be in default hereunder because of any failure to make, or any delay
in making, any distribution hereunder or any portion thereof or any failure to
perform, or any delay in performing, any duties hereunder, in either case caused
by the failure of the Master Servicer to deliver or provide, or any delay in
delivering or providing, any cash, information, documents or records to it. The
appointment of a successor Master Servicer shall not affect any liability of the
predecessor Master Servicer that my have arisen under this Agreement before its
termination as Master Servicer to pay any deductible under an insurance policy,
to indemnify any person, or otherwise, nor shall any successor Master Servicer
be liable for any acts or omissions of the predecessor Master Servicer or for
any breach by the Master Servicer of any of its representations and warranties
contained in this Agreement.
In connection with the termination or resignation of the Master
Servicer hereunder, either (i) the successor Master Servicer, including the
Trustee if the Trustee is acting as successor Master Servicer, shall represent
and warrant that it is a member of MERS in good standing and shall agree to
comply in all material respects with the rules and procedures of MERS in
connection with the servicing of the Mortgage Loans that are registered with
MERS, or (ii) the predecessor Master Servicer shall cooperate with the successor
Master Servicer either (x) in causing MERS to execute and deliver an assignment
of Mortgage in recordable form to transfer the Mortgage from MERS to the Trustee
and to execute and deliver such other notices, documents and other instruments
as may be necessary or desirable to effect a transfer of such Mortgage Loan or
servicing of such Mortgage Loan on the MERS(R) System to the successor Master
Servicer or (y) in causing MERS to designate on the MERS(R) System the successor
Master Servicer as the servicer of such Mortgage Loan. The predecessor Master
Servicer shall file or cause to be filed any such assignment in the appropriate
recording office. The successor Master Servicer shall cause such assignment to
be delivered to the Trustee promptly upon receipt of the original with evidence
of recording thereon or a copy certified by the public recording office in which
such assignment was recorded.
Any successor to the Master Servicer as Master Servicer shall give
notice of the change of servicer to the NIM Insurer and the Mortgagors and
shall, during the term of its service as Master Servicer, maintain in force the
policy or policies that the Master Servicer is required to maintain pursuant to
Section 6.05.
Section 7.03 NOTIFICATION TO CERTIFICATEHOLDERS.
(a) Upon any termination of or appointment of a successor to the
Master Servicer, the Trustee shall give prompt written notice thereof to
Certificateholders and each Rating Agency.
(b) Within sixty (60) days after the occurrence of any Event of
Default, the Trustee shall transmit by mail to all Certificateholders and each
Rating Agency notice of each Event of Default hereunder known to the Trustee,
unless the Event of Default has been cured or waived.
ARTICLE VIII
CONCERNING THE TRUSTEE AND THE SUPPLEMENTAL INTEREST TRUST ADMINISTRATOR
Section 8.01 DUTIES OF THE TRUSTEE AND THE SUPPLEMENTAL
INTEREST TRUST ADMINISTRATOR.
The Trustee, before the occurrence of an Event of Default and after the
curing of all Events of Default that may have occurred, and the Supplemental
Interest Trust Administrator shall undertake to perform such duties and only the
duties specifically set forth in this Agreement. If an Event of Default has
occurred and remains uncured, the Trustee shall exercise such of the rights and
powers vested in it by this Agreement, and use the same degree of care and skill
in their exercise as a prudent person would exercise or use under the
circumstances in the conduct of such person's own affairs.
Each of the Trustee and the Supplemental Interest Trust Administrator,
upon receipt of all resolutions, certificates, statements, opinions, reports,
documents, orders or other instruments furnished to the Trustee or the
Supplemental Interest Trust Administrator, as applicable, that are specifically
required to be furnished pursuant to any provision of this Agreement, shall
examine them to determine whether they are in the form required by this
Agreement. If any such instrument is found not to conform to the requirements of
this Agreement in a material manner, the Trustee or the Supplemental Interest
Trust Administrator, as applicable, shall take any action it deems appropriate
to have the instrument corrected, and if the instrument is not corrected to the
Trustee's or the Supplemental Interest Trust Administrator's satisfaction, the
Trustee or the Supplemental Interest Trust Administrator, as applicable, shall
notify the Certificateholders of the defect. Neither the Trustee nor the
Supplemental Interest Trust Administrator shall be responsible for the accuracy
or content of any resolution, certificate, statement, opinion, report, document,
order or other instrument.
No provision of this Agreement shall be construed to relieve the
Trustee or the Supplemental Interest Trust Administrator from liability for its
own negligent action, its own negligent failure to act, or its own willful
misconduct.
Unless an Event of Default known to the Trustee has occurred and is
continuing:
(a) the duties and obligations of the Trustee shall be determined
solely by the express provisions of this Agreement, the Trustee shall not be
liable except for the performance of the duties specifically set forth in this
Agreement, no implied covenants or obligations shall be read into this Agreement
against the Trustee, and the Trustee may conclusively rely, as to the truth of
the statements and the correctness of the opinions expressed therein, upon any
certificates or opinions furnished to the Trustee and conforming to the
requirements of this Agreement that it believed in good faith to be genuine and
to have been duly executed by the proper authorities respecting any matters
arising hereunder;
(b) the Trustee shall not be liable for an error of judgment made
in good faith by a Responsible Officer or Responsible Officers of the Trustee,
unless it is finally proven that the Trustee was negligent in ascertaining the
pertinent facts; and
(c) the Trustee shall not be liable with respect to any action
taken, suffered or omitted to be taken by it in good faith in accordance with
the direction of the NIM Insurer or Holders of Certificates evidencing not less
than 25% of the Voting Rights of Certificates relating to the time, method and
place of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred upon the Trustee under this Agreement.
Section 8.02 CERTAIN MATTERS AFFECTING THE TRUSTEE AND THE
SUPPLEMENTAL INTEREST TRUST ADMINISTRATOR.
Except as otherwise provided in Section 8.01:
(a) each of the Trustee and the Supplemental Interest Trust
Administrator may request and rely upon and shall be protected in acting or
refraining from acting upon any resolution, Officer's Certificate, certificate
of auditors or any other certificate, statement, instrument, opinion, report,
notice, request, consent, order, appraisal, bond or other paper or document
believed by it to be genuine and to have been signed or presented by the proper
party or parties and neither the Trustee nor the Supplemental Interest Trust
Administrator shall have any responsibility to ascertain or confirm the
genuineness of any signature of any such party or parties;
(b) each of the Trustee and the Supplemental Interest Trust
Administrator may consult with counsel, financial advisers or accountants and
the advice of any such counsel, financial advisers or accountants, and any
Opinion of Counsel shall be full and complete authorization and protection in
respect of any action taken or suffered or omitted by it hereunder in good faith
and in accordance with such Opinion of Counsel;
(c) neither the Trustee nor the Supplemental Interest Trust
Administrator shall be 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;
(d) neither the Trustee nor the Supplemental Interest Trust
Administrator shall be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, consent, order, approval, bond or other paper or document,
unless requested in writing so to do by the NIM Insurer or Holders of
Certificates evidencing not less than 25% of the Voting Rights allocated to each
Class of Certificates;
(e) each of the Trustee and the Supplemental Interest Trust
Administrator may execute any of the trusts or powers hereunder or perform any
duties hereunder either directly or by or through agents, accountants, or
attorneys, and neither the Trustee nor the Supplemental Interest Trust
Administrator shall be responsible for any misconduct or negligence on the part
of any agents, accountants or attorneys appointed with due care by it hereunder;
(f) neither the Trustee nor the Supplemental Interest Trust
Administrator shall be required to risk or expend its own funds or otherwise
incur any financial liability in the performance of any of its duties or in the
exercise of any of its rights or powers hereunder if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity against
such risk or liability is not assured to it;
(g) neither the Trustee nor the Supplemental Interest Trust
Administrator shall be liable for any loss on any investment of funds pursuant
to this Agreement (other than as issuer of the investment security);
(h) the Trustee shall not be deemed to have knowledge of an Event
of Default or Swap Provider Trigger Event until a Responsible Officer of the
Trustee or the Supplemental Interest Trust Administrator, as applicable, shall
have received written notice thereof;
(i) neither the Trustee nor the Supplemental Interest Trust
Administrator need exercise any of the trusts, rights or powers vested in it by
this Agreement or to institute, conduct or defend any litigation in connection
with this Agreement at the request, order or direction of the NIM Insurer or any
of the Certificateholders pursuant to this Agreement unless the NIM Insurer or
the Certificateholders shall have offered to the Trustee or the Supplemental
Interest Trust Administrator, as applicable, reasonable security or indemnity
satisfactory to the Trustee or the Supplemental Interest Trust Administrator, as
applicable, against the costs, expenses and liabilities that may be incurred in
connection therewith;
(j) the Trustee or its Affiliates are permitted to receive
additional compensation that could be deemed to be in the Trustee's economic
self-interest for (i) serving as investment adviser, administrator, shareholder,
servicing agent, custodian or sub-custodian with respect to certain of the
Permitted Investments, (ii) using Affiliates to effect transactions in certain
Permitted Investments and (iii) effecting transactions in certain Permitted
Investments. The Trustee does not guarantee the performance of any Permitted
Investments; and
(k) neither the Trustee nor the Supplemental Interest Trust
Administrator shall knowingly take any action that would cause the Trust Fund to
fail to qualify as a qualifying special purpose entity.
In order to comply with its duties under the U.S.A. Patriot Act, the
Trustee shall obtain and verify certain information and documentation from the
other parties to this Agreement, including, but not limited to, such parties'
name, address and other identifying information.
Section 8.03 TRUSTEE AND SUPPLEMENTAL INTEREST TRUST
ADMINISTRATOR NOT LIABLE FOR CERTIFICATES OR
MORTGAGE LOANS.
The recitals contained herein and in the Certificates shall be taken as
the statements of the Depositor or the Seller, as the case may be, and neither
the Trustee nor the Supplemental Interest Trust Administrator assumes any
responsibility for their correctness. Neither the Trustee nor the Supplemental
Interest Trust Administrator makes any representations as to the validity or
sufficiency of this Agreement, the Certificates, any Mortgage Loan or related
document or MERS or the MERS(R) System other than with respect to the Trustee's
execution and countersignature of the Certificates. Neither the Trustee nor the
Supplemental Interest Trust Administrator shall be accountable for the use or
application by the Depositor or the Master Servicer of any funds paid to the
Depositor or the Master Servicer in respect of the Mortgage Loans or deposited
in or withdrawn from the Certificate Account by the Depositor or the Master
Servicer.
Except as provided in Section 2.01(c), the Trustee shall have no
responsibility for filing or recording any financing or continuation statement
in any public office at any time or to otherwise perfect or maintain the
perfection of any security interest or lien granted to it hereunder (unless the
Trustee shall have become the successor Master Servicer).
The Trustee executes the Certificates not in its individual capacity
but solely as Trustee of the Trust Fund created by this Agreement, in the
exercise of the powers and authority conferred and vested in it by this
Agreement. Each of the undertakings and agreements made on the part of the
Trustee on behalf of the Trust Fund in the Certificates is made and intended not
as a personal undertaking or agreement by the Trustee but is made and intended
for the purpose of binding only the Trust Fund.
Section 8.04 TRUSTEE AND SUPPLEMENTAL INTEREST TRUST
ADMINISTRATOR MAY OWN CERTIFICATES.
Each of the Trustee and the Supplemental Interest Trust Administrator,
in its individual or any other capacity, may become the owner or pledgee of
Certificates with the same rights as it would have if it were not the Trustee or
the Supplemental Interest Trust Administrator, as applicable.
Section 8.05 TRUSTEE'S FEES AND EXPENSES.
As compensation for its activities under this Agreement as Trustee and
Supplemental Interest Trust Administrator, the Trustee may withdraw from the
Distribution Account on each Distribution Date the Trustee Fee for the
Distribution Date. The Trustee and the Supplemental Interest Trust Administrator
and any director, officer, employee or agent of the Trustee or the Supplemental
Interest Trust Administrator, as applicable, shall be indemnified by the Seller
against any loss, liability or expense (including reasonable attorney's fees)
resulting from any error in any tax or information return prepared by the Master
Servicer or incurred in connection with any claim or legal action relating to:
(a) this Agreement;
(b) the Certificates; or
(c) the performance of any of the Trustee's or the Supplemental
Interest Trust Administrator's duties under this Agreement;
other than any loss, liability or expense incurred because of willful
misfeasance, bad faith or negligence in the performance of any of the Trustee's
or the Supplemental Interest Trust Administrator's duties under this Agreement.
This indemnity shall survive the termination of this Agreement or the
resignation or removal of the Trustee or the Supplemental Interest Trust
Administrator under this Agreement. Without limiting the foregoing, except as
otherwise agreed upon in writing by the Depositor and the Trustee or the
Supplemental Interest Trust Administrato, as applicable, and except for any
expense, disbursement or advance arising from the Trustee's or the Supplemental
Interest Trust Administrator's negligence, bad faith or willful misconduct, the
Seller shall pay or reimburse the Trustee or the Supplemental Interest Trust
Administrator, as applicable, for all reasonable expenses, disbursements and
advances incurred or made by the Trustee or the Supplemental Interest Trust
Administrator, as applicable, in accordance with this Agreement with respect to:
(A) the reasonable compensation, expenses and
disbursements of its counsel not associated with the closing
of the issuance of the Certificates;
(B) the reasonable compensation, expenses and
disbursements of any accountant, engineer or appraiser that is
not regularly employed by the Trustee or the the Supplemental
Interest Trust Administrator, to the extent that the Trustee
or the Supplemental Interest Trust Administrator must engage
them to perform services under this Agreement; and
(C) printing and engraving expenses in
connection with preparing any Definitive Certificates.
Except as otherwise provided in this Agreement, neither the Trustee nor the
Supplemental Interest Trust Administrator shall be entitled to payment or
reimbursement for any routine ongoing expenses incurred by the Trustee or the
Supplemental Interest Trust Administrator, as applicable, in the ordinary course
of its duties as Trustee, Supplemental Interest Trust Administrator, Registrar
or Paying Agent under this Agreement or for any other expenses.
Section 8.06 ELIGIBILITY REQUIREMENTS FOR THE TRUSTEE AND THE
SUPPLEMENTAL INTEREST TRUST ADMINISTRATOR.
Each of the Trustee and the Supplemental Interest Trust Administrator
hereunder shall at all times be a corporation or association organized and doing
business under the laws of a state or the United States of America, authorized
under such laws to exercise corporate trust powers, having a combined capital
and surplus of at least $50,000,000, subject to supervision or examination by
federal or state authority and with a credit rating that would not cause any of
the Rating Agencies to reduce their respective then-current ratings of the
Certificates (or, having provided such security from time to time, as is
sufficient to avoid such reduction) as evidenced in writing by each Rating
Agency. If such corporation or association publishes reports of condition at
least annually, pursuant to law or to the requirements of the aforesaid
supervising or examining authority, then for the purposes of this Section 8.06
the combined capital and surplus of such corporation or association shall be
deemed to be its combined capital and surplus as disclosed in its most recent
report of condition so published. If at any time the Trustee or the Supplemental
Interest Trust Administrator, as applicable, ceases to be eligible in accordance
with this Section 8.06, the Trustee or the Supplemental Interest Trust
Administrator, as applicable, shall resign immediately in the manner and with
the effect specified in Section 8.07. The entities serving as Trustee and
Supplemental Interest Trust Administrator may have normal banking and trust
relationships with the Depositor and its affiliates or the Master Servicer and
its affiliates. Neither the Trustee nor the Supplemental Interest Trust
Administrator may be an affiliate of the Seller, the Depositor or the Master
Servicer, other than the Trustee in its role as successor to the Master
Servicer. The principal office of the Trustee and the Supplemental Interest
Trust Administrator (other than the initial Trustee and Supplemental Interest
Trust Administrator) shall be in a state with respect to which an Opinion of
Counsel has been delivered to the Trustee or the Supplemental Interest Trust
Administrator, as applicable, at the time such party is appointed Trustee or
Supplemental Interest Trust Administrator, as applicable, to the effect that the
Trust will not be a taxable entity under the laws of that state.
Section 8.07 RESIGNATION AND REMOVAL OF THE TRUSTEE AND THE
SUPPLEMENTAL INTEREST TRUST ADMINISTRATOR.
Each of the Trustee and the Supplemental Interest Trust Administrator
may at any time resign and be discharged from the trusts hereby created by
giving written notice of resignation to the Depositor, the Master Servicer and
each Rating Agency not less than sixty (60) days before the date specified in
the notice, when, subject to Section 8.08, the resignation is to take effect,
and acceptance by a successor trustee in accordance with Section 8.08 meeting
the qualifications in Section 8.06. If no successor trustee meeting those
qualifications shall have been so appointed and have accepted appointment within
thirty (30) days after the notice of resignation, the resigning Trustee or
Supplemental Interest Trust Administrator, as applicable, may petition any court
of competent jurisdiction for the appointment of a successor trustee or
supplemental interest trust administrator reasonably acceptable to the NIM
Insurer.
If at any time the Trustee or the Supplemental Interest Trust
Administrator shall cease to be eligible in accordance with Section 8.06 and
shall fail to resign after written request thereto by the NIM Insurer or the
Depositor, or if at any time the Trustee or the Supplemental Interest Trust
Administrator shall become incapable of acting, or shall be adjudged as bankrupt
or insolvent, or a receiver of the Trustee or of its property shall be
appointed, or any public officer shall take charge or control of the Trustee or
the Supplemental Interest Trust Administrator, as applicable, or of its property
or affairs for the purpose of rehabilitation, conservation or liquidation, or a
tax is imposed with respect to the Trust Fund by any state in which the Trustee,
the Supplemental Interest Trust Administrator or the Trust Fund is located and
the imposition of the tax would be avoided by the appointment of a different
trustee or administrator, as applicable, then the Depositor, the NIM Insurer or
the Master Servicer may remove the Trustee or the Supplemental Interest Trust
Administrator, as applicable, and appoint a successor trustee or supplemental
interest trust administrator reasonably acceptable to the NIM Insurer by written
instrument, in triplicate, one copy of which shall be delivered to the Trustee
or the Supplemental Interest Trust Administrator, as applicable, one copy to the
Master Servicer and one copy to the successor trustee or supplemental interest
trust administrator.
The NIM Insurer or the Holders of Certificates (other than the Master
Servicer, Seller, Depositor or any affiliates or agents thereof) entitled to at
least 51% of the Voting Rights may at any time remove the Trustee and appoint a
successor trustee or supplemental interest trust administrator by written
instrument or instruments, in triplicate, signed by the NIM Insurer or the
Holders or their attorneys-in-fact duly authorized, as the case may be, one
complete set of which shall be delivered by the successor Trustee or
Supplemental Interest Trust Administrator, as applicable, to the Master
Servicer, one complete set to the Trustee or the Supplemental Interest Trust
Administrator so removed, and one complete set to the successor so appointed.
The successor trustee or supplemental interest trust administrator, as
applicable, shall notify each Rating Agency of any removal of the Trustee or the
Supplemental Interest Trust Administrator.
Any resignation or removal of the Trustee or the Supplemental Interest
Trust Administrator and appointment of a successor trustee or supplemental
interest trust administrator, as applicable, pursuant to this Section 8.07 shall
become effective upon acceptance of appointment by the successor trustee or
supplemental interest trust administrator as provided in Section 8.08.
Section 8.08 SUCCESSOR TRUSTEE OR SUPPLEMENTAL INTEREST TRUST
ADMINISTRATOR.
Any successor trustee or supplemental interest trust administrator
appointed as provided in Section 8.07 shall execute, acknowledge and deliver to
the Depositor, its predecessor trustee or administrator and the Master Servicer
an instrument accepting its appointment hereunder and thereupon the resignation
or removal of the predecessor trustee or administrator shall become effective
and the successor trustee or supplemental interest trust administrator, without
any further act, deed or conveyance, shall become fully vested with all the
rights and obligations of its predecessor hereunder, with the like effect as if
originally named as Trustee or Supplemental Interest Trust Administrator herein.
The Depositor, the Master Servicer and the predecessor trustee or administrator,
as applicable, shall execute and deliver such instruments and do such other
things as may reasonably be required for more fully and certainly vesting and
confirming in the successor trustee or supplemental interest trust
administrator, as applicable, all such rights and obligations.
No successor trustee or supplemental interest trust administrator shall
accept appointment as provided in this Section 8.08 unless at the time of its
acceptance, the successor trustee or supplemental interest trust administrator
is eligible under Section 8.06, is reasonably acceptable to the NIM Insurer, and
its appointment does not adversely affect the then current rating of the
Certificates.
Upon acceptance of appointment by a successor trustee or supplemental
interest trust administrator as provided in this Section 8.08, the Depositor
shall mail notice of the succession of such trustee or administrator hereunder
to the NIM Insurer and all Holders of Certificates. If the Depositor fails to
mail the notice within ten (10) days after acceptance of appointment by the
successor trustee or supplemental interest trust admininstrator, the successor
trustee or supplemental interest trust administrator, as applicable, shall cause
the notice to be mailed at the expense of the Depositor.
Section 8.09 MERGER OR CONSOLIDATION OF THE TRUSTEE OR THE
SUPPLEMENTAL INTEREST TRUST ADMINISTRATOR.
Any corporation into which the Trustee or the Supplemental Interest
Trust Administrator may be merged or converted or with which it may be
consolidated or any corporation resulting from any merger, conversion, or
consolidation to which the Trustee or the Supplemental Interest Trust
Administrator shall be a party, or any corporation succeeding to the business of
the Trustee or the Supplemental Interest Trust Administrator, shall be the
successor of the Trustee or the Supplemental Interest Trust Administrator, as
applicable, hereunder if the successor corporation is eligible under Section
8.06 without the execution or filing of any paper or further act on the part of
any of the parties hereto, anything herein to the contrary notwithstanding.
Section 8.10 APPOINTMENT OF CO-TRUSTEE OR SEPARATE TRUSTEE.
Notwithstanding any other provisions of this Agreement, at any time,
for the purpose of meeting any legal requirements of any jurisdiction in which
any part of the Trust Fund or property securing any Mortgage Note may at the
time be located, the Master Servicer and the Trustee acting jointly shall have
the power and shall execute and deliver all instruments to appoint one or more
Persons approved by the Trustee and reasonably acceptable to the NIM Insurer to
act as co-trustee or co-trustees jointly with the Trustee, or separate trustee
or separate trustees, of all or any part of the Trust Fund, and to vest in them,
in such capacity and for the benefit of the Certificateholders, such title to
the Trust Fund or any part thereof, whichever is applicable, and, subject to the
other provisions of this Section 8.10, such powers, duties, obligations, rights
and trusts as the Master Servicer and the Trustee may consider appropriate. If
the Master Servicer shall not have joined in such appointment within fifteen
(15) days after the receipt by it of a request to do so, or in the case an Event
of Default shall have occurred and be continuing, the Trustee alone shall have
the power to make such appointment. No co-trustee or separate trustee hereunder
shall be required to meet the terms of eligibility as a successor trustee under
Section 8.06 and no notice to Certificateholders of the appointment of any
co-trustee or separate trustee shall be required under Section 8.08.
Every separate trustee and co-trustee shall, to the extent permitted by
law, be appointed and act subject to the following provisions and conditions:
(a) To the extent necessary to effectuate the purposes of this
Section 8.10, all rights and obligations conferred or imposed upon the Trustee,
except for the obligation of the Trustee under this Agreement to advance funds
on behalf of the Master Servicer, shall be conferred or imposed upon and
exercised or performed by the Trustee and such separate trustee or co-trustee
jointly (it being understood that such separate trustee or co-trustee is not
authorized to act separately without the Trustee joining in such act), except to
the extent that under any law of any jurisdiction in which any particular act or
acts are to be performed (whether as Trustee hereunder or as successor to the
Master Servicer hereunder), the Trustee shall be incompetent or unqualified to
perform such act or acts, in which event such rights and obligations (including
holding title to the applicable Trust Fund or any portion thereof in any such
jurisdiction) shall be exercised and performed singly by such separate trustee
or co-trustee, but solely at the direction of the Trustee;
(b) No trustee hereunder shall be held personally liable because
of any act or omission of any other trustee hereunder and such appointment shall
not, and shall not be deemed to, constitute any such separate trustee or
co-trustee as agent of the Trustee;
(c) The Trustee, with the consent of the NIM Insurer, may at any
time accept the resignation of or remove any separate trustee or co-trustee; and
(d) The Master Servicer, and not the Trustee, shall be liable for
the payment of reasonable compensation, reimbursement, and indemnification to
any such separate trustee or co-trustee.
Any notice, request, or other writing given to the Trustee shall be
deemed to have been given to each of the separate trustees and co-trustees, when
and 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 VIII. Each separate trustee and co-trustee, upon its acceptance
of the trusts conferred, shall be vested with the estates or property specified
in its instrument of appointment, either jointly with the Trustee or separately,
as may be provided therein, subject to all the provisions of this Agreement,
specifically including every provision of this Agreement relating to the conduct
of, affecting the liability of, or affording protection to, the Trustee. Every
such instrument shall be filed with the Trustee and a copy thereof given to the
Master Servicer and the Depositor.
Any separate trustee or co-trustee may, at any time, constitute the
Trustee its agent or attorney-in-fact, with full power and authority, to the
extent not prohibited by law, to do any lawful act under or in respect of this
Agreement on its behalf and in its name. If any separate trustee or co-trustee
shall die, become incapable of acting, resign, or be removed, all of its
estates, properties, rights, remedies and trusts shall vest in and be exercised
by the Trustee, to the extent permitted by law, without the appointment of a new
or successor trustee.
Section 8.11 TAX MATTERS.
It is intended that the assets with respect to which any REMIC election
pertaining to the Trust Fund is to be made, as described in the Preliminary
Statement, shall constitute, and that the conduct of matters relating to such
assets shall be such as to qualify such assets as, a "real estate mortgage
investment conduit" as defined in and in accordance with the REMIC Provisions.
In furtherance of such intention, the Trustee covenants and agrees that it shall
act as agent (and the Trustee is hereby appointed to act as agent) on behalf of
any REMIC created hereunder and that in such capacity it shall:
(a) prepare and file in a timely manner, a U.S. Real Estate
Mortgage Investment Conduit Income Tax Return (Form 1066 or any successor form
adopted by the Internal Revenue Service) and prepare and file with the Internal
Revenue Service and applicable state or local tax authorities income tax or
information returns for each taxable year with respect to each REMIC created
hereunder described in the Preliminary Statement containing such information and
at the times and in the manner as may be required by the Code or state or local
tax laws, regulations or rules, and furnish to Certificateholders the schedules,
statements or information at such times and in such manner as may be required
thereby;
(b) within thirty (30) days of the Closing Date, furnish to the
Internal Revenue Service, on Forms 8811 or as otherwise may be required by the
Code, the name, title, address and telephone number of the person that the
holders of the Certificates may contact for tax information relating thereto,
together with such additional information as may be required by such Form 8811,
and update such information at the time or times in the manner required by the
Code;
(c) make an election that each REMIC created under this Agreement
be treated as a REMIC on the federal tax return for its first taxable year (and,
if necessary, under applicable state law);
(d) prepare and forward to the Certificateholders and to the
Internal Revenue Service and, if necessary, state tax authorities, all
information returns and reports as and when required to be provided to them in
accordance with the REMIC Provisions, including the calculation of any original
issue discount using the prepayment assumptions set forth in "Yield, Prepayment
and Maturity Considerations-Structuring Assumptions" in the Prospectus
Supplement;
(e) provide information necessary for the computation of tax
imposed on the transfer of a Residual Certificate to a Person that is not a
Permitted Transferee, or an agent (including a broker, nominee or other
middleman) of a Non-Permitted Transferee, or a pass-through entity in which a
Non-Permitted Transferee is the record holder of an interest (the reasonable
cost of computing and furnishing such information may be charged to the Person
liable for such tax);
(f) to the extent that they are under its control, conduct matters
relating to such assets at all times that any Certificates are outstanding so as
to maintain the status of any REMIC created hereunder as a REMIC under the REMIC
Provisions;
(g) pay, from the sources specified in the last paragraph of this
Section 8.11, the amount of any federal or state tax, including prohibited
transaction taxes as described below, imposed on any REMIC created under this
Agreement before its termination when and as the same shall be due and payable
(but such obligation shall not prevent the Trustee or any other appropriate
Person from contesting any such tax in appropriate proceedings and shall not
prevent the Trustee from withholding payment of such tax, if permitted by law,
pending the outcome of such proceedings);
(h) ensure that federal, state or local income tax or information
returns shall be signed by the Trustee or such other person as may be required
to sign such returns by the Code or state or local laws, regulations or rules;
(i) maintain records relating to each REMIC created under this
Agreement, including the income, expenses, assets and liabilities thereof and
the fair market value and adjusted basis of the assets determined at such
intervals as may be required by the Code, as may be necessary to prepare the
foregoing returns, schedules, statements or information;
(j) as and when necessary and appropriate, represent any REMIC
created under this Agreement in any administrative or judicial proceedings
relating to an examination or audit by any governmental taxing authority,
request an administrative adjustment as to any taxable year of any REMIC created
under this Agreement, enter into settlement agreements with any governmental
taxing agency, extend any statute of limitations relating to any tax item of any
REMIC created under this Agreement, and otherwise act on behalf of any REMIC
created under this Agreement in relation to any tax matter or controversy
involving it; and
(k) none of the Depositor, Master Servicer or the Trustee shall
knowingly or intentionally take any action or omit to take any action that would
cause the termination of any REMIC, or result in the imposition of any
non-indemnification taxes on any REMIC, created under this Agreement.
To enable the Trustee to perform its duties under this Agreement, the
Depositor shall provide to the Trustee within ten (10) days after the Closing
Date all information or data that the Trustee requests in writing and determines
to be relevant for tax purposes to the valuations and offering prices of the
Certificates, including the price, yield, prepayment assumption and projected
cash flows of the Certificates and the Mortgage Loans. Moreover, the Depositor
shall provide information to the Trustee concerning the value to each Class of
Certificates of the right to receive Net WAC Cap Carry Forward Amounts from the
Excess Reserve Fund Account. Thereafter, the Depositor shall provide to the
Trustee promptly upon written request therefor any additional information or
data that the Trustee may, from time to time, reasonably request to enable the
Trustee to perform its duties under this Agreement. The Depositor hereby
indemnifies the Trustee for any losses, liabilities, damages, claims or expenses
of the Trustee arising from any errors or miscalculations of the Trustee that
result from any failure of the Depositor to provide, or to cause to be provided,
accurate information or data to the Trustee on a timely basis.
If any tax is imposed on "prohibited transactions" of any REMIC as
defined in Section 860F(a)(2) of the Code, on the "net income from foreclosure
property" of any REMIC created under this Agreement as defined in Section
860G(c) of the Code, on any contribution to any REMIC created under this
Agreement after the Startup Day pursuant to Section 860G(d) of the Code, or any
other tax is imposed, including any minimum tax imposed on any REMIC created
under this Agreement pursuant to Sections 23153 and 24874 of the California
Revenue and Taxation Code, if not paid as otherwise provided for herein, the tax
shall be paid by (i) the Trustee if such tax or any other tax arises out of or
results from negligence of the Trustee in the performance of any of its
obligations under this Agreement, (ii) the Master Servicer or the Seller, in the
case of any such minimum tax, if such tax arises out of or results from a breach
by the Master Servicer or Seller of any of their obligations under this
Agreement, (iii) the Seller if such tax arises out of or results from the
Seller's obligation to repurchase a Mortgage Loan pursuant to Section 2.01,
2.02, 2.03 or 2.05, or (iv) in all other cases, or if the Trustee, the Master
Servicer or the Seller fails to honor its obligations under the preceding
clauses (i), (ii) or (iii), any such tax will be paid with amounts otherwise to
be distributed to the Certificateholders, as provided in Section 3.09(b).
The Trustee shall treat the Excess Reserve Fund Account as an outside
reserve fund within the meaning of Treasury Regulation Section 1.860G-2(h) that
is owned by the holders of the Class C Certificates and that is not an asset of
any REMIC created hereunder. The Trustee shall treat the rights of the holders
of each Class of Certificates (other than the Class C, Class P and Class R
Certificates) to receive payments from the Excess Reserve Fund Account as rights
in an interest rate corridor contract written by: (i) the Cap Contract
Counterparty in respect of any Net WAC Shortfalls funded by the Cap Contract and
in respect of any residual payments from the Cap Contract received by the Class
C Certificates; and (ii) the holders of the Class C Certificates in respect of
any Net WAC Shortfalls that are not funded by the Cap Contract, in each case in
favor of the other Certificateholders. Thus, each Certificate (other than the
Class C, Class P and Class R Certificates) shall be treated as representing
ownership of not only a REMIC regular interest, but also ownership of an
interest in an interest rate corridor contract. For purposes of determining the
issue price of the Master REMIC regular interests, the Trustee shall assume that
the Cap Contract has a nominal value.
Section 8.12 PERIODIC FILINGS.
Beginning with the first Distribution Date, the Trustee, pursuant to
written instructions of the Depositor (which instructions shall be deemed to be
this Section 8.12), shall prepare and file all periodic reports required under
the Exchange Act in conformity with the terms of the relief granted to issuers
similar to the Trust Fund. The Trustee shall execute the Form 8-Ks pursuant to a
limited power of attorney from the Depositor which shall terminate upon written
notice from the Depositor or the termination of this Agreement. In connection
with the preparation and filing of such periodic reports, the Depositor and the
Master Servicer shall timely provide to the Trustee all material information
available to them that is required to be included in such reports and not known
to them to be in the possession of the Trustee and such other information as the
Trustee reasonably may request from either of them (including any certification
required pursuant to Section 3.02(a) of the Xxxxxxxx-Xxxxx Act of 2002 and any
regulations promulgated thereunder (the "REQUIRED CERTIFICATIONS")) and
otherwise reasonably shall cooperate with the Trustee. The Depositor shall
execute the Form 10-Ks and the Required Certifications. The Trustee shall have
no responsibility for making any of the Required Certifications; provided,
however, that upon the request of the Master Servicer or the Depositor in
connection with the delivery of the Required Certifications on behalf of the
Trust Fund, the Trustee shall furnish to the Master Servicer or the Depositor,
as applicable, a certificate signed by an officer of the Trustee (the "TRUSTEE
CERTIFICATION"), which is attached as Exhibit O to this Agreement. The Trustee
shall indemnify and hold harmless the Master Servicer and the Depositor, their
respective officers and directors from and against any and all losses, claims,
expenses, damages or liabilities, as and when such losses, claims, expenses,
damages or liabilities are incurred, insofar as such losses, claims, expenses,
damages or liabilities (or actions in respect thereof) arise out of or are based
upon any untrue statement of any material fact contained in the Trustee
Certification. The Trustee shall prepare the Form 10-K and provide such to the
Depositor by March 10th of each year, commencing in 2006. The Depositor shall
execute such Form 10-K upon its receipt and shall provide the original of such
executed Form 10-K to the Trustee no later than five (5) Business Days following
its receipt from the Trustee.
Prior to January 30th of the first year in which the Trustee is able to
do so under applicable law, the Trustee shall file under the Exchange Act a Form
15D Suspension Notification with respect to the Trust Fund. The Trustee shall
have no liability with respect to any failure to properly prepare or file such
periodic reports resulting from or relating to the Trustee's inability or
failure to obtain any information not resulting from its own negligence or
willful misconduct.
The Trustee and any director, officer, employee or agent of the Trustee
shall be indemnified by the Master Servicer against any loss, liability or
expense (including reasonable attorney's fees) incurred in connection with any
claim or legal action relating to the preparation of the Required Certification,
other than any loss, liability or expense incurred because of willful
misfeasance, bad faith or negligence in the performance of any of the Trustee's
duties under this Agreement or incurred by reason of any action of the Trustee
taken at the direction of the Certificateholders under this Agreement. This
indemnity shall survive the termination of this Agreement or the resignation or
removal of the Trustee under this Agreement.
Section 8.13 [RESERVED]
Section 8.14 [RESERVED]
Section 8.15 ACCESS TO RECORDS OF TRUSTEE.
The Trustee shall afford the Seller, the Depositor, the Master
Servicer, the NIM Insurer and each Certificateholder or Certificate Owner, upon
reasonable notice during normal business hours, access to all records maintained
by the Trustee in respect of its duties under this Agreement and access to
officers of the Trustee responsible for performing its duties. Upon request, the
Trustee shall furnish the Depositor, the Master Servicer, the NIM Insurer and
any requesting Certificateholder or Certificate Owner with its most recent
financial statements. The Trustee shall cooperate fully with the Seller, the
Master Servicer, the Depositor, the NIM Insurer and the Certificateholder or
Certificate Owner for review and copying any books, documents or records
requested with respect to the Trustee's duties under this Agreement. The Seller,
the Depositor, the Master Servicer and the Certificateholder or Certificate
Owner shall not have any responsibility or liability for any action for failure
to act by the Trustee and are not obligated to supervise the performance of the
Trustee under this Agreement or otherwise.
Section 8.16 SUITS FOR ENFORCEMENT.
If an Event of Default or other material default by the Master Servicer
or the Depositor under this Agreement occurs and is continuing, at the direction
of the Certificateholders comprising in the aggregate a Majority in Interest or
of the NIM Insurer, the Trustee shall proceed to protect and enforce its rights
and the rights of the Certificateholders or the NIM Insurer under this Agreement
by a suit, action or proceeding in equity or at law or otherwise, whether for
the specific performance of any covenant or agreement contained in this
Agreement or in aid of the execution of any power granted in this Agreement or
for the enforcement of any other legal, equitable or other remedy, as the
Trustee, being advised by counsel, and subject to the foregoing, shall deem most
effectual to protect and enforce any of the rights of the Trustee, the NIM
Insurer and the Certificateholders.
ARTICLE IX
TERMINATION
Section 9.01 TERMINATION UPON LIQUIDATION OR PURCHASE OF THE
MORTGAGE LOANS.
Subject to Section 9.03, the obligations of the Depositor, the Master
Servicer and the Trustee created hereby with respect to the Trust Fund shall
terminate upon the earlier of:
(a) the purchase by the NIM Insurer or the Master Servicer of all
Mortgage Loans (and REO Properties) at the price equal to THE SUM OF:
(i) 100% of the Stated Principal Balance of each Mortgage
Loan (other than for REO Property) PLUS one month's accrued interest
thereon at the applicable Mortgage Rate less the Master Servicing Fee
Rate;
(ii) the LESSER OF (x) the appraised value of any REO
Property as determined by the higher of two appraisals completed by two
independent appraisers selected by the Master Servicer at the expense
of the Master Servicer AND (y) the Stated Principal Balance of each
Mortgage Loan related to any REO Property, in each case PLUS accrued
and unpaid interest thereon at the applicable Adjusted Net Mortgage
Rate;
(iii) any costs and damages incurred by the Trust Fund in
connection with any violation by each Mortgage Loan of any predatory or
abusive lending law;
(iv) any Swap Termination Payment payable to the Swap
Provider then due but unpaid or which is payable due to the exercise of
such option; and
(b) the later of:
(i) the maturity or other liquidation (or any Advance
with respect thereto) of the last Mortgage Loan remaining in the Trust
Fund and the disposition of all REO Property; and
(ii) the distribution to Certificateholders of all amounts
required to be distributed to them pursuant to this Agreement. In no
event shall the trusts created hereby continue beyond the earlier of
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 or the
Latest Possible Maturity Date (as defined in the Preliminary
Statement).
The Master Servicer may repurchase all Mortgage Loans and REO
Properties pursuant to clause (a) above if the aggregate Stated Principal
Balance of the Mortgage Loans, at the time of the repurchase, is less than ten
(10) percent of the aggregate Cut-off Date Principal Balance of the Mortgage
Loans. If the Master Servicer is entitled to repurchase the Mortgage Loans
pursuant to this Section and fails to do so, the NIM Insurer may repurchase all
Mortgage Loans and REO Properties pursuant to clause (a) above after thirty (30)
days prior notice to the Master Servicer if the Master Servicer does not first
purchase them. Upon termination of the Trust, the Master Servicer shall succeed
to all rights of the Trustee and Certificateholders with respect to the Trust
Fund, other than funds needed to make the final distribution, including any
assets that were ever part of the Trust Fund.
Section 9.02 FINAL DISTRIBUTION ON THE CERTIFICATES.
If on any Determination Date, the NIM Insurer or the Master Servicer
determines that there are no Outstanding Mortgage Loans and no other funds or
assets in the Trust Fund other than the funds in the Certificate Account, the
NIM Insurer or the Master Servicer shall direct the Trustee promptly to send a
final distribution notice to each Certificateholder. If the NIM Insurer or the
Master Servicer elects to terminate the Trust Fund pursuant to clause (a) of
Section 9.01, at least twenty (20) days before the date notice is to be mailed
to the affected Certificateholders, the Master Servicer shall notify the
Depositor and the Trustee of the date the Master Servicer intends to terminate
the Trust Fund and of the applicable repurchase price of the Mortgage Loans and
REO Properties.
Notice of any termination of the Trust Fund, specifying the
Distribution Date on which Certificateholders may surrender their Certificates
for payment of the final distribution and cancellation, shall be given promptly
by the Trustee by letter to Certificateholders, mailed not earlier than the 10th
day and not later than the 15th day of the month next preceding the month of
such final distribution. Any such notice shall specify (a) the Distribution Date
upon which final distribution on the Certificates will be made upon presentation
and surrender of Certificates at the office therein designated, (b) the amount
of such final distribution, (c) the location of the office or agency at which
such presentation and surrender must be made and (d) that the Record Date
otherwise applicable to the Distribution Date is not applicable, distributions
being made only upon presentation and surrender of the Certificates at the
office therein specified. The Master Servicer will give such notice to each
Rating Agency at the time such notice is given to Certificateholders.
If the notice is given, the Master Servicer shall cause all funds in
the Certificate Account to be remitted to the Trustee for deposit in the
Distribution Account on the Business Day before the applicable Distribution Date
in an amount equal to the final distribution in respect of the Certificates.
Upon such final deposit with respect to the Trust Fund and the receipt by the
Trustee of a Request for Release therefor, the Trustee shall promptly release to
the Master Servicer the Mortgage Files for the Mortgage Loans.
Upon presentation and surrender of the Certificates, the Trustee shall
cause to be distributed to the Certificateholders of each Class, in each case on
the final Distribution Date and in the order stated in Section 4.02, in
proportion to their respective Percentage Interests, with respect to
Certificateholders of the same Class, an amount equal to (i) as to each Class of
Regular Certificates (except the Class C Certificate), its Certificate Balance
PLUS for each such Class accrued interest thereon in the case of an
interest-bearing Certificate and (ii) as to the Residual Certificates, any
amount remaining on deposit in the Distribution Account (other than the amounts
retained to meet claims) after application pursuant to clause (i) above. By
acceptance of the Residual Certificates, the holders of the Residual
Certificates agree, in connection with any termination hereunder, that their
rights to receive any amounts pursuant to clause (ii) in the immediately
preceding sentence hereby are assigned and transferred and, to the extent
received in respect of such termination, to pay any such amounts to the holders
of the Class C Certificates.
If any affected Certificateholder does not surrender its Certificates
for cancellation within six (6) months after the date specified in the above
mentioned written notice, the Trustee shall give a second written notice to the
remaining Certificateholders to surrender their Certificates for cancellation
and receive the final distribution with respect thereto. If within six (6)
months after the second notice all the applicable Certificates shall not have
been surrendered for cancellation, the Trustee may take appropriate steps, or
may appoint an agent to take appropriate steps, to contact the remaining
Certificateholders concerning surrender of their Certificates, and the cost
thereof shall be paid out of the funds and other assets that remain a part of
the Trust Fund. If within one year after the second notice all Certificates
shall not have been surrendered for cancellation, the Class R Certificateholders
shall be entitled to all unclaimed funds and other assets of the Trust Fund that
remain subject hereto.
Section 9.03 ADDITIONAL TERMINATION REQUIREMENTS.
If the NIM Insurer or the Master Servicer exercises its purchase option
with respect to the Mortgage Loans as provided in Section 9.01, the Trust Fund
shall be terminated in accordance with the following additional requirements,
unless the Trustee has been supplied with an Opinion of Counsel, at the expense
of the Master Servicer, to the effect that the failure to comply with the
requirements of this Section 9.03 will not (i) result in the imposition of taxes
on "prohibited transactions" on any REMIC created hereunder as defined in
Section 860F of the Code or (ii) cause any REMIC created under this Agreement to
fail to qualify as a REMIC at any time that any Certificates are outstanding.
The Trustee shall sell all of the assets of the Trust Fund to the NIM
Insurer or the Master Servicer, as applicable, and, within ninety (90) days of
the sale, shall distribute to the Certificateholders the proceeds of the sale in
complete liquidation of any REMIC created hereunder.
The Trustee shall attach a statement to the final federal income tax
return for each of any REMIC created hereunder stating that pursuant to Treasury
Regulation Section 1.860F-1, the first day of the ninety (90) day liquidation
period for each the REMIC was the date on which the Trustee sold the assets of
the Trust Fund to the NIM Insurer or the Master Servicer.
Section 9.04 TERMINATION OF THE SUPPLEMENTAL INTEREST TRUST.
The obligations of the Depositor, the Trustee and the Supplemental
Interest Trust Administrator created hereby with respect to the Supplemental
Interest Trust shall terminate upon the earlier of:
(a) the termination of the Swap Agreement pursuant to the terms of
the Swap Agreement; and
(b) the termination of this Agreement pursuant to Section 9.01.
ARTICLE X
MISCELLANEOUS PROVISIONS
Section 10.01 AMENDMENT.
This Agreement may be amended from time to time by the Depositor, the
Master Servicer, and the Trustee with the consent of the NIM Insurer and without
the consent of any of the Certificateholders:
(i) to cure any ambiguity or mistake,
(ii) to correct any defective provision herein or to supplement any
provision herein that may be inconsistent with any other provision herein,
(iii) to conform this Agreement to the Prospectus Supplement,
(iv) to add to the duties of the Depositor, the Seller, or the
Master Servicer,
(v) to modify, alter, amend, add to or rescind any of the terms or
provisions contained in this Agreement to comply with any rules or regulations
promulgated by the Securities and Exchange Commission from time to time,
(vi) to add any other provisions with respect to matters or
questions arising hereunder, or
(vii) to modify, alter, amend, add to, or rescind any of the
provisions of this Agreement.
No action pursuant to clauses (iv), (vi) or (vii) above may, as evidenced by an
Opinion of Counsel (which Opinion of Counsel shall not be an expense of the
Trustee or the Trust Fund), adversely affect in any material respect the
interests of any Certificateholder. The amendment shall not be deemed to
adversely affect in any material respect the interests of the Certificateholders
if the Person requesting the amendment obtains a letter from each Rating Agency
stating that the amendment would not result in the downgrading or withdrawal of
the respective ratings then assigned to the Certificates. Any such letter in and
of itself will not represent a determination as to the materiality of any
amendment and will represent a determination only as to the credit issues
affecting any rating. Each party to this Agreement agrees that it will cooperate
with each other party in amending this Agreement pursuant to clause (v) above.
The Trustee, the Depositor and the Master Servicer also may, at any
time and from time to time, amend this Agreement with the consent of the NIM
Insurer and without the consent of the Certificateholders, in order to modify,
eliminate or add to any of the provisions of this Agreement to the extent
necessary or helpful to:
(i) maintain the qualification of any REMIC created under
this Agreement under the Code;
(ii) avoid or minimize the risk of the imposition of any
tax on any REMIC created under this Agreement pursuant to the Code that
would be a claim at any time before the final redemption of the
Certificates; or
(iii) comply with any other requirements of the Code;
if the Trustee has been provided an Opinion of Counsel, which opinion shall be
an expense of the party requesting such opinion but in any case shall not be an
expense of the Trustee or the Trust Fund, to the effect that the action is
necessary or helpful for one of those purposes.
This Agreement may also be amended from time to time by the Depositor,
the Master Servicer, and the Trustee with the consent of the NIM Insurer and the
Holders of Certificates evidencing Percentage Interests aggregating not less
than 66(2)/3% of each Class of Certificates affected thereby for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Agreement or of modifying in any manner the rights of the
Holders of Certificates. No amendment shall:
(i) reduce in any manner the amount of, or delay the
timing of, payments required to be distributed on any Certificate
without the consent of the Holder of the Certificate;
(ii) adversely affect in any material respect the
interests of the Holders of any Class of Certificates in a manner other
than as described in (i), without the consent of the Holders of
Certificates of the Class evidencing, as to the Class, Percentage
Interests aggregating not less than 66(2)/3%;
(iii) amend, modify, add to, rescind, or alter in any
respect Section 10.13, notwithstanding any contrary provision of this
Agreement, without the consent of the Holders of Certificates
evidencing Percentage Interests aggregating not less than 66(2)/3%, and
for this purpose no Certificates held by the Seller, the Depositor, or
any Affiliate of either of them shall be eligible to vote or be
considered Outstanding; or
(iv) reduce the aforesaid percentages of Certificates the
Holders of which are required to consent to any such amendment, without
the consent of the Holders of all such Certificates then outstanding.
Notwithstanding any contrary provision of this Agreement, the Trustee
shall not consent to any amendment to this Agreement unless (i) it shall have
first received an Opinion of Counsel satisfactory to the NIM Insurer, which
opinion shall not be an expense of the Trustee or the Trust Fund, to the effect
that the amendment will not cause the imposition of any tax on any REMIC or the
Certificateholders or cause any REMIC to fail to qualify as a REMIC at any time
that any Certificates are outstanding and (ii) because the Trust Fund is
required to be a Qualifying Special Purpose Entity (as that term is defined in
Statement of Financial Accounting Standards No. 140 ("SFAS 140")), in order for
the Seller to continue to account for the transfer of the Mortgage Loans under
this Agreement as a sale under SFAS 140, prior to the parties hereto entering
into such an amendment, the Trustee shall receive an Officer's Certificate,
which shall not be an expense of the Trustee or the Trust Fund, to the effect
that such amendment would not "significantly change" (within the meaning of SFAS
140) the permitted activities of the Trust Fund so as to cause the Trust Fund to
fail to qualify as a Qualifying Special Purpose Entity.
Notwithstanding any of the other provisions of this Section 10.01, none
of the Depositor, the Master Servicer, the Supplemental Interest Trust
Administrator or the Trustee shall enter into any amendment to the second
paragraph of Section 4.02(I), Section 4.02(V) or Section 4.05 of this Agreement
without the prior written consent of the Swap Provider.
Promptly after the execution of any amendment to this Agreement
requiring the consent of Certificateholders, the Trustee shall furnish written
notification of the substance or a copy of the amendment to each
Certificateholder and each Rating Agency.
It shall not be necessary for the consent of Certificateholders under
this Section 10.01 to approve the particular form of any proposed amendment, but
it shall be sufficient if the consent approves its substance. The manner of
obtaining consents and of evidencing the authorization of their execution by
Certificateholders shall be subject to such reasonable regulations as the
Trustee may prescribe.
Nothing in this Agreement shall require the Trustee to enter into an
amendment without receiving an Opinion of Counsel satisfactory to the NIM
Insurer (which Opinion shall not be an expense of the Trustee or the Trust
Fund), satisfactory to the Trustee that (i) the amendment is permitted by this
Agreement and all conditions precedent to the amendment have been satisfied; and
(ii) either (A) the amendment does not adversely affect in any material respect
the interests of any Certificateholder or (B) the conclusion in the preceding
clause (A) is not required to be reached pursuant to this Section 10.01.
Section 10.02 RECORDATION OF AGREEMENT; COUNTERPARTS.
This Agreement is subject to recordation in all appropriate public
offices for real property records in all the counties or other comparable
jurisdictions in which any or all of the properties subject to the Mortgages are
situated, and in any other appropriate public recording office or elsewhere, the
recordation to be effected by the Master Servicer at its expense, but only upon
receipt of an Opinion of Counsel to the effect that the recordation materially
and beneficially affects the interests of the Certificateholders.
For the purpose of facilitating the recordation of this Agreement as
herein provided and for other purposes, this Agreement may be executed
simultaneously in any number of counterparts, each of which counterparts shall
be an original, and all of which shall constitute but one instrument.
Section 10.03 GOVERNING LAW.
THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY
THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND
TO BE PERFORMED IN THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HERETO AND THE CERTIFICATEHOLDERS SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.
Section 10.04 INTENTION OF PARTIES.
It is the express intent of the parties hereto that the conveyance (i)
of the Mortgage Loans by the Seller to the Depositor and (ii) of the Trust Fund
by the Depositor to the Trustee each be, and be construed as, an absolute sale
thereof. It is, further, not the intention of the parties that such conveyances
be deemed a pledge thereof. However, if, notwithstanding the intent of the
parties, the assets are held to be the property of the Seller or Depositor, as
the case may be, or if for any other reason this Agreement is held or deemed to
create a security interest in either such assets, then (i) this Agreement shall
be deemed to be a security agreement within the meaning of the Uniform
Commercial Code of the State of New York and (ii) the conveyances provided for
in this Agreement shall be deemed to be an assignment and a grant (i) by the
Seller to the Depositor or (ii) by the Depositor to the Trustee, for the benefit
of the Certificateholders, of a security interest in all of the assets
transferred, whether now owned or hereafter acquired.
The Seller and the Depositor for the benefit of the NIM Insurer and the
Certificateholders shall, to the extent consistent with this Agreement, take
such actions as may be necessary to ensure that, if this Agreement were deemed
to create a security interest in the Trust Fund, such security interest would be
deemed to be a perfected security interest of first priority under applicable
law and will be maintained as such throughout the term of the Agreement. The
Depositor shall arrange for filing any Uniform Commercial Code continuation
statements in connection with any security interest granted or assigned to the
Trustee for the benefit of the Certificateholders.
Section 10.05 NOTICES.
(a) The Trustee shall promptly notify each Rating Agency of each
of the following of which it has actual knowledge:
1. Any material change or amendment to this Agreement;
2. The occurrence of any Event of Default that has not
been cured;
3. The resignation or termination of the Master Servicer
or the Trustee and the appointment of any successor;
4. The repurchase or substitution of Mortgage Loans
pursuant to Section 2.03; and
5. The final payment to Certificateholders.
In addition, the Trustee shall promptly furnish to each Rating
Agency copies of the following:
1. Each report to Certificateholders described in
Section 4.03;
2. Each annual statement as to compliance described in
Section 3.17;
3. Each annual independent public accountants' servicing
report described in Section 3.18; and
4. Any notice of a purchase of a Mortgage Loan pursuant
to Section 2.01, 2.02, 2.03, 2.05 or 3.12.
(b) All directions, demands and notices hereunder shall be in
writing and be duly given when delivered to
(i) in the case of the Depositor, IndyMac ABS, Inc., 000
Xxxxx Xxxx Xxxxxx, Xxxxxxxx, Xxxxxxxxxx 00000, Attention: Capital
Markets, or such other address as may be hereafter furnished to the NIM
Insurer, the Master Servicer, and the Trustee by the Depositor;
(ii) in the case of the Master Servicer, IndyMac Bank,
F.S.B., 000 Xxxxx Xxxx Xxxxxx, Xxxxxxxx, Xxxxxxxxxx 00000, Attention:
Master Servicing, or such other address as may be hereafter furnished
to the NIM Insurer, the Depositor, and the Trustee by the Master
Servicer;
(iii) in the case of the Trustee or the Supplemental
Interest Trust Administrator, to the Corporate Trust Office, Deutsche
Bank National Trust Company, 0000 Xxxx Xx. Xxxxxx Xxxxx, Xxxxx Xxx,
Xxxxxxxxxx 00000-0000, Attention: Trust Xxxxxxxxxxxxxx XX00X0, Series
INABS 2005-C, or such other address as the Trustee may hereafter
furnish to the NIM Insurer, the Depositor, and Master Servicer; and
(iv) in the case of the NIM Insurer, to such address as
each NIM Insurer may hereafter furnish to the Depositor, the Trustee or
Master Servicer;
(v) in the case of each of the Rating Agencies, the
address specified therefor in the definition corresponding to the name
of such Rating Agency.
Notices to Certificateholders shall be deemed given when mailed, first
class postage prepaid, to their respective addresses appearing in the
Certificate Register.
Section 10.06 SEVERABILITY OF PROVISIONS.
If any one or more of the provisions of this Agreement shall be for any
reason whatsoever held invalid, then those provisions shall be deemed severable
from the remaining provisions of this Agreement and shall in no way affect the
validity or enforceability of the other provisions of this Agreement or of the
Certificates or the rights of the Holders thereof.
Section 10.07 ASSIGNMENT.
Notwithstanding anything to the contrary contained herein, except as
provided in Section 6.02, this Agreement may not be assigned by the Master
Servicer without the prior written consent of the Trustee and Depositor.
Section 10.08 LIMITATION ON RIGHTS OF CERTIFICATEHOLDERS.
The death or incapacity of any Certificateholder shall not operate to
terminate this Agreement or the Trust, nor entitle such Certificateholder's
legal representative or heirs to claim an accounting or to take any action or
commence any proceeding in any court for a petition or winding up of the Trust,
or otherwise affect the rights and obligations of the parties hereto or any of
them.
No Certificateholder shall have any right to vote (except as provided
herein) or in any manner otherwise control the operation and management of the
Trust Fund, or the obligations of the parties hereto, nor shall anything in this
Agreement or the Certificates be construed so as to constitute the
Certificateholders from time to time as partners or members of an association;
nor shall any Certificateholder be liable to any third party because of any
action taken by the parties to this Agreement pursuant to any provision hereof.
No Certificateholder shall have any right by virtue or by availing
itself of any provisions of this Agreement to institute any suit, action or
proceeding in equity or at law upon or under or with respect to this Agreement,
unless such Holder previously shall have given to the Trustee a written notice
of an Event of Default and of the continuance thereof, as herein provided, and
unless the Holders of Certificates evidencing not less than 25% of the Voting
Rights evidenced by the Certificates shall also have made written request to the
Trustee to institute such action, suit, or proceeding in its own name as Trustee
hereunder and shall have offered to the Trustee such reasonable indemnity as it
may require against the costs, expenses and liabilities to be incurred therein
or thereby, and the Trustee, for sixty (60) days after its receipt of such
notice, request, and offer of indemnity shall have neglected or refused to
institute any such action, suit, or proceeding. Each Certificateholder expressly
covenants with every other Certificateholder and the Trustee that no one or more
Holders of Certificates shall have any right in any manner whatever by virtue or
by availing itself or themselves of any provisions of this Agreement to affect,
disturb or prejudice the rights of the Holders of any other of the Certificates,
or to obtain or seek to obtain priority over or preference to any other such
Holder or to enforce any right under this Agreement, except in the manner herein
provided and for the common benefit of all Certificateholders. For the
protection and enforcement of this Section 10.08, each Certificateholder and the
Trustee shall be entitled to any relief that can be given either at law or in
equity.
Section 10.09 INSPECTION AND AUDIT RIGHTS.
The Master Servicer agrees that on reasonable prior notice, it will
permit any representative of the Depositor, the NIM Insurer or the Trustee
during such Person's normal business hours, to examine all the books of account,
records, reports and other papers of such Person relating to the Mortgage Loans,
to make copies and extracts therefrom, to cause such books to be audited by
independent certified public accountants of the NIM Insurer or reasonably
acceptable to the NIM Insurer selected by the Depositor or the Trustee and to
discuss its affairs, finances and accounts relating to the Mortgage Loans with
its officers, employees and independent public accountants (and by this
provision the Master Servicer hereby authorizes said accountants to discuss with
such representative such affairs, finances and accounts), all at such reasonable
times and as often as may be reasonably requested. Any out-of-pocket expense
incident to the exercise by the Depositor, the NIM Insurer or the Trustee of any
right under this Section 10.09 shall be borne by the Master Servicer.
Section 10.10 CERTIFICATES NONASSESSABLE AND FULLY PAID.
It is the intention of the Depositor that Certificateholders shall not
be personally liable for obligations of the Trust Fund, that the interests in
the Trust Fund represented by the Certificates shall be nonassessable for any
reason whatsoever, and that the Certificates, upon due authentication thereof by
the Trustee pursuant to this Agreement, are and shall be deemed fully paid.
Section 10.11 OFFICIAL RECORD.
The Seller agrees that this Agreement is and shall remain at all times
before the time at which this Agreement terminates an official record of the
Seller as referred to in Section 13(e) of the Federal Deposit Insurance Act.
Section 10.12 PROTECTION OF ASSETS.
(a) Except for transactions and activities entered into in
connection with the securitization that is the subject of this Agreement, the
Trust is not authorized and has no power to:
(1) borrow money or issue debt;
(2) merge with another entity, reorganize, liquidate or
sell assets; or
(3) engage in any business or activities.
(b) Each party to this Agreement agrees that it will not file an
involuntary bankruptcy petition against the Trustee or the Trust Fund or
initiate any other form of insolvency proceeding until after the Certificates
have been paid in full. `
Section 10.13 QUALIFYING SPECIAL PURPOSE ENTITY.
Notwithstanding any contrary provision of this Agreement the Trust Fund
shall not engage in any activity or knowingly hold any property that would
disqualify the Trust Fund from being a qualifying special purpose entity under
generally accepted accounting principles.
Section 10.14 RIGHTS OF NIM INSURER.
(a) The rights of the NIM Insurer under this Agreement shall exist
only so long as either
o the NIM Notes certain payments on which are guaranteed by the
NIM Insurer remain outstanding or
o the NIM Insurer is owed amounts paid by it with respect to
that guaranty.
The rights of the NIM Insurer under this Agreement are exercisable by the NIM
Insurer only so long as no default by the NIM Insurer under its guaranty of
certain payments under the NIM Notes has occurred and is continuing. If the NIM
Insurer is the subject of any insolvency proceeding, the rights of the NIM
Insurer under this Agreement will be exercisable by the NIM Insurer only so long
as
o the obligations of the NIM Insurer under its guaranty of the
NIM Notes have not been disavowed and
o the Seller and the Trustee have received reasonable assurances
that the NIM Insurer will be able to satisfy its obligations
under its guaranty of the NIM Notes.
(b) The NIM Insurer is a third party beneficiary of this Agreement
to the same extent as if it were a party to this Agreement, and may enforce any
of those rights under this Agreement.
(c) A copy of any documents of any nature required by this
Agreement to be delivered by the Trustee, or to the Trustee or the Rating
Agencies, shall in each case at the same time also be delivered to the NIM
Insurer. Any notices required to be given by the Trustee, or to the Trustee or
the Rating Agencies, shall in each case at the same time also be given to the
NIM Insurer.
(d) Anything in this Agreement that is conditioned on not
resulting in the downgrading or withdrawal of the ratings then assigned to the
Certificates by the Rating Agencies shall also be conditioned on not resulting
in the downgrading or withdrawal of the ratings then assigned by the Rating
Agencies to the NIM Notes.
In Witness Whereof, the Depositor, the Trustee, and the Seller and
Master Servicer have caused their names to be signed hereto by their respective
officers thereunto duly authorized as of the day and year first above written.
INDYMAC ABS, INC.,
as Depositor
By: /s/ Xxxxx Xxxxxxxx
------------------------------
Name: Xxxxx Xxxxxxxx
Title: Vice President
DEUTSCHE BANK NATIONAL TRUST
COMPANY,
as Trustee
By: /s/ Xxxxxxxx Hermanfader
------------------------------
Name: Xxxxxxxx Hermanfader
Title: Associate
By: /s/ Xxxxxxx Xxxxx
------------------------------
Name: Xxxxxxx Xxxxx
Title: Vice President
INDYMAC BANK, F.S.B.,
as Seller and Master Servicer
By: /s/ Xxxxx Xxxxxxxx
------------------------------
Name: Xxxxx Xxxxxxxx
Title: Vice President
SCHEDULE I
Mortgage Loan Schedule
[Filed by Paper]
SCHEDULE II
Home Equity Mortgage Loan Asset-Backed Certificates,
Series INABS 2005-C
REPRESENTATIONS AND WARRANTIES OF THE SELLER/MASTER SERVICER
Indy Mac Bank, F.S.B. ("INDYMAC") hereby makes the representations and
warranties in this Schedule II to the Depositor and the Trustee as of the
Closing Date. Capitalized terms used but not otherwise defined in this Schedule
II shall have the meanings ascribed thereto in the Pooling and Servicing
Agreement (the "POOLING AND SERVICING AGREEMENT") relating to the
above-referenced Series, among IndyMac, as Seller and Master Servicer, IndyMac
ABS, Inc., as Depositor, and Deutsche Bank National Trust Company, as Trustee.
(1) IndyMac is duly organized as a federally insured savings bank
and is validly existing and in good standing under the laws of the
United States of America and is duly authorized and qualified to
transact any business contemplated by the Pooling and Servicing
Agreement to be conducted by IndyMac in any state in which a Mortgaged
Property is located or is otherwise not required under applicable law
to effect such qualification and, in any event, is in compliance with
the doing business laws of any such state, to the extent necessary to
ensure its ability to enforce each Mortgage Loan, to service the
Mortgage Loans in accordance with the Pooling and Servicing Agreement
and to perform any of its other obligations under the Pooling and
Servicing Agreement and any Subsequent Transfer Instrument in
accordance with the terms thereof.
(2) IndyMac has the full corporate power and authority to sell and
service each Mortgage Loan, and to execute, deliver and perform, and to
enter into and consummate the transactions contemplated by the Pooling
and Servicing Agreement and any Subsequent Transfer Instrument and has
duly authorized by all necessary corporate action on the part of
IndyMac the execution, delivery and performance of the Pooling and
Servicing Agreement and any Subsequent Transfer Instrument; and each of
the Pooling and Servicing Agreement and any Subsequent Transfer
Instrument, assuming the due authorization, execution and delivery
thereof by the other parties thereto, constitutes a legal, valid and
binding obligation of IndyMac, enforceable against IndyMac in
accordance with its terms, except that (a) the enforceability thereof
may be limited by bankruptcy, insolvency, moratorium, receivership and
other similar laws relating to creditors' rights generally and (b) the
remedy of specific performance and injunctive and other forms of
equitable relief may be subject to equitable defenses and to the
discretion of the court before which any proceeding therefor may be
brought.
(3) The execution and delivery of the Pooling and Servicing
Agreement and any Subsequent Transfer Instrument by IndyMac, the sale
and servicing of the Mortgage Loans by IndyMac under the Pooling and
Servicing Agreement, the consummation of any other of the transactions
contemplated by the Pooling and Servicing Agreement and any Subsequent
Transfer Instrument, and the fulfillment of or compliance with the
terms of the Pooling and Servicing Agreement and any Subsequent
Transfer Instrument are in the ordinary course of business of IndyMac
and will not (A) result in a material breach of any term or provision
of the charter or by-laws of IndyMac, (B) materially conflict with,
result in a material breach, violation or acceleration of, or result in
a material default under, any other material agreement or instrument to
which IndyMac is a party or by which it may be bound, or (C) constitute
a material violation of any statute, order or regulation applicable to
IndyMac of any court, regulatory body, administrative agency or
governmental body having jurisdiction over IndyMac (including the OTS,
the FDIC or any other governmental entity having regulatory authority
over IndyMac); and IndyMac is not in breach or violation of any
material indenture or other material agreement or instrument, or in
violation of any statute, order or regulation of any court, regulatory
body, administrative agency or governmental body having jurisdiction
over it (including the OTS, the FDIC or any other governmental entity
having regulatory authority over IndyMac) which breach or violation may
materially impair IndyMac's ability to perform or meet any of its
obligations under the Pooling and Servicing Agreement and any
Subsequent Transfer Instrument.
(4) IndyMac is an approved servicer of conventional mortgage loans
for FNMA or FHLMC or is a mortgagee approved by the Secretary of
Housing and Urban Development pursuant to Sections 203 and 211 of the
National Housing Act.
(5) No litigation is pending or, to the best of IndyMac's
knowledge, threatened against IndyMac that would prohibit the execution
or delivery of, or performance under, the Pooling and Servicing
Agreement and any Subsequent Transfer Instrument by IndyMac.
(6) IndyMac is a member of MERS in good standing, and will comply
in all material respects with the rules and procedures of MERS in
connection with the servicing of the MERS Mortgage Loans for as long as
such Mortgage Loans are registered with MERS.
SCHEDULE III
Home Equity Mortgage Loan Asset-Backed Certificates,
Series INABS 2005-C
REPRESENTATIONS AND WARRANTIES AS TO THE MORTGAGE LOANS
IndyMac Bank, F.S.B. ("INDYMAC") hereby makes the representations and
warranties in this Schedule III to the Depositor and the Trustee, as of the
Closing Date (or Subsequent Transfer Date, as applicable), or if so specified
herein, as of the applicable Cut-off Date or date of origination of the Mortgage
Loan (as applicable). Capitalized terms used but not otherwise defined in this
Schedule III shall have the meanings ascribed thereto in the Pooling and
Servicing Agreement (the "POOLING AND SERVICING AGREEMENT") relating to the
above-referenced Series, among IndyMac, as Seller and Master Servicer, IndyMac
ABS, Inc., as Depositor, and Deutsche Bank National Trust Company, as Trustee.
(1) The information on Schedule I to the Pooling and
Servicing Agreement with respect to each Mortgage Loan is true and
correct in all material respects as of the Closing Date (or Subsequent
Transfer Date, as applicable).
(2) As of the Closing Date (or Subsequent Transfer Date,
as applicable), all regularly scheduled monthly payments due with
respect to each Mortgage Loan up to and including the Due Date before
the applicable Cut-off Date have been made; and as of the applicable
Cut-off Date, no Mortgage Loan had a regularly scheduled monthly
payment that was 30 or more days Delinquent during the twelve months
before the applicable Cut-off Date.
(3) With respect to any Mortgage Loan, each Mortgage is a
valid and enforceable first lien on the Mortgaged Property subject only
to (a) the lien of nondelinquent current real property taxes and
assessments and liens or interests arising under or as a result of any
federal, state or local law, regulation or ordinance relating to
hazardous wastes or hazardous substances and, if the related Mortgaged
Property is a unit in a condominium project or planned unit
development, any lien for common charges permitted by statute or
homeowner association fees, (b) covenants, conditions and restrictions,
rights of way, easements and other matters of public record as of the
date of recording of such Mortgage, such exceptions appearing of record
being generally acceptable to mortgage lending institutions in the area
wherein the related Mortgaged Property is located or specifically
reflected in the appraisal made in connection with the origination of
the related Mortgage Loan, and (c) other matters to which like
properties are commonly subject that do not materially interfere with
the benefits of the security intended to be provided by such Mortgage.
(4) Immediately before the assignment of the Mortgage
Loans to the Depositor, the Seller had good title to, and was the sole
owner of, each Mortgage Loan free and clear of any pledge, lien,
encumbrance or security interest and had full right and authority,
subject to no interest or participation of, or agreement with, any
other party, to sell and assign the same pursuant to the Pooling and
Servicing Agreement.
(5) As of the date of origination of each Mortgage Loan,
there was no delinquent tax or assessment lien against the related
Mortgaged Property.
(6) There is no valid offset, defense or counterclaim to
any Mortgage Note or Mortgage, including the obligation of the
Mortgagor to pay the unpaid principal of or interest on such Mortgage
Note.
(7) There are no mechanics' liens or claims for work,
labor or material affecting any Mortgaged Property that are or may be a
lien before, or equal with, the lien of such Mortgage, except those
that are insured against by the title insurance policy referred to in
item (11) below.
(8) No Mortgaged Property has been materially damaged by
water, fire, earthquake, windstorm, flood, tornado or similar casualty
(excluding casualty from the presence of hazardous wastes or hazardous
substances, as to which the Seller makes no representation) so as to
affect adversely the value of the related Mortgaged Property as
security for the Mortgage Loan.
(9) Each Mortgage Loan and prepayment penalty associated
with the Mortgage Loan at origination complied in all material respects
with applicable federal, state and local laws, including usury, equal
credit opportunity, real estate settlement procedures,
truth-in-lending, Home Ownership and Equity Protection Act of 1994,
applicable predatory and abusive lending and disclosure laws, or any
noncompliance does not have a material adverse effect on the value of
the related Mortgage Loan.
(10) As of the Closing Date (or Subsequent Transfer Date,
as applicable), the Seller has not modified the Mortgage in any
material respect (except that a Mortgage Loan may have been modified by
a written instrument that has been recorded or submitted for
recordation, if necessary, to protect the interests of the
Certificateholders and that has been delivered to the Trustee);
satisfied, cancelled or subordinated such Mortgage in whole or in part;
released the related Mortgaged Property in whole or in part from the
lien of such Mortgage; or executed any instrument of release,
cancellation, modification or satisfaction with respect thereto.
(11) A lender's policy of title insurance together with a
condominium endorsement and extended coverage endorsement, if
applicable, in an amount at least equal to the Cut-off Date Principal
Balance or Subsequent Cut-off Date Principal Balance, as applicable, of
each Mortgage Loan or a commitment (binder) to issue the same was
effective on the date of the origination of each Mortgage Loan, each
such policy is valid and remains in full force and effect.
(12) Each Mortgage Loan was originated (within the meaning
of Section 3(a)(41) of the Exchange Act) by an entity that satisfied at
the time of origination the requirements of Section 3(a)(41) of the
Exchange Act.
(13) To the best of the Seller's knowledge, all of the
improvements that were included for the purpose of determining the
Appraised Value of the Mortgaged Property lie wholly within the
boundaries and building restriction lines of such property, and no
improvements on adjoining properties encroach upon the Mortgaged
Property, unless such failure to be wholly within such boundaries and
restriction lines or such encroachment, as the case may be, does not
have a material effect on the value of the Mortgaged Property.
(14) To the best of the Seller's knowledge, as of the date
of origination of each Mortgage Loan, no improvement located on or
being part of the Mortgaged Property is in violation of any applicable
zoning law or regulation unless such violation would not have a
material adverse effect on the value of the related Mortgaged Property.
To the best of the Seller's knowledge, all inspections, licenses and
certificates required to be made or issued with respect to all occupied
portions of the Mortgaged Property and, with respect to the use and
occupancy of the same, including certificates of occupancy and fire
underwriting certificates, have been made or obtained from the
appropriate authorities, unless the lack thereof would not have a
material adverse effect on the value of the Mortgaged Property.
(15) The Mortgage Note and the related Mortgage are
genuine, and each is the legal, valid and binding obligation of the
maker thereof, enforceable in accordance with its terms and under
applicable law.
(16) The proceeds of the Mortgage Loan have been fully
disbursed and there is no requirement for future advances thereunder.
(17) The related Mortgage contains customary and
enforceable provisions that render the rights and remedies of the
holder thereof adequate for the realization against the Mortgaged
Property of the benefits of the security, including, (i) in the case of
a Mortgage designated as a deed of trust, by trustee's sale, and (ii)
otherwise by judicial foreclosure.
(18) With respect to each Mortgage constituting a deed of
trust, a trustee, duly qualified under applicable law to serve as such,
has been properly designated and currently so serves and is named in
such Mortgage, and no fees or expenses are or will become payable by
the Certificateholders to the trustee under the deed of trust, except
in connection with a trustee's sale after default by the Mortgagor.
(19) As of the applicable Cut-off Date, the improvements
upon each Mortgaged Property are covered by a valid and existing hazard
insurance policy with a generally acceptable carrier that provides for
fire and extended coverage and coverage for such other hazards as are
customarily required by institutional single family mortgage lenders in
the area where the Mortgaged Property is located, and the Seller has
received no notice that any premiums due and payable thereon have not
been paid; the Mortgage obligates the Mortgagor thereunder to maintain
all such insurance including flood insurance at the Mortgagor's cost
and expense. Anything to the contrary in this item (19)
notwithstanding, no breach of this item (19) shall be deemed to give
rise to any obligation of the Seller to repurchase or substitute for
such affected Mortgage Loan or Loans so long as the Master Servicer
maintains a blanket policy pursuant to the second paragraph of Section
3.10(a) of the Pooling and Servicing Agreement.
(20) If at the time of origination of each Mortgage Loan,
the related Mortgaged Property was in an area then identified in the
Federal Register by the Federal Emergency Management Agency as having
special flood hazards, a flood insurance policy in a form meeting the
then-current requirements of the Flood Insurance Administration is in
effect with respect to the Mortgaged Property with a generally
acceptable carrier.
(21) To the best of the Seller's knowledge, there is no
proceeding pending or threatened for the total or partial condemnation
of any Mortgaged Property, nor is such a proceeding currently
occurring.
(22) To the best of the Seller's knowledge, there is no
material event that, with the passage of time or with notice and the
expiration of any grace or cure period, would constitute a material
non-monetary default, breach, violation or event of acceleration under
the Mortgage or the related Mortgage Note; and the Seller has not
waived any material non-monetary default, breach, violation or event of
acceleration.
(23) Each Mortgage File contains an Appraisal Form 1004 of
the related Mortgaged Property.
(24) Any leasehold estate securing a Mortgage Loan has a
stated term at least as long as the term of the related Mortgage Loan.
(25) Each Mortgage Loan was selected from among the
outstanding one- to four-family mortgage loans in the Seller's mortgage
portfolio at the Closing Date (or Subsequent Transfer Date, as
applicable) as to which the representations and warranties made with
respect to the Mortgage Loans in this Schedule III can be made. No such
selection was made in a manner intended to adversely affect the
interests of the Certificateholders.
(26) None of the Mortgage Loans in Loan Group I and none
of the Mortgage Loans in Loan Group II are cooperative loans.
(27) [RESERVED.]
(28) [RESERVED.]
(29) No Mortgage Loan is a High Cost Loan or Covered Loan,
as applicable (as such terms are defined in the then-current version of
Standard & Poor's LEVELS(R) Glossary, which is now Version 5.6(b)
Revised, Appendix E) and no Mortgage Loan originated on or after Oct.
1, 2002 through March 6, 2003 is governed by the Georgia Fair Lending
Act.
(30) No Mortgage Loan is a "High-Cost Home Loan" as
defined in any of the following statutes: the Georgia Fair Lending Act,
as amended (the "Georgia Act"), the New York Banking Law 6-1, the
Arkansas Home Loan Protection Act effective July 16, 2003 (Act 1340 of
2003), the Kentucky high-cost home loan statute effective June 24, 2003
(Ky. Rev. Stat. Section 360.100), the New Jersey Home Ownership Act
effective November 27, 2003 (N.J.S.A. 46:10B-22 et seq.), or the New
Mexico Home Loan Protection Act effective January 1, 2004 (N.M. Stat.
Xxx xx.xx. 58-21A-1 et seq.). No Mortgage Loan secured by owner
occupied real property or an owner occupied manufactured home located
in the state of Georgia was originated (or modified) on or after
October 1, 2002 through and including March 6, 2003. No Mortgage Loan
is a "High-Risk Home Loan" as defined in the Illinois High-Risk Home
Loan Act effective January 1, 2004 (815 Ill. Comp. Stat. 137/1 et
seq.).
(31) None of the Mortgage Loans is a "high cost" loan,
"covered" loan or any other similarly designated loan as defined under
any state, local or federal law, as defined by applicable predatory and
abusive lending laws.
(32) None of the Mortgage Loans that are secured by
property located in the State of Illinois are in violation of the
provisions of the Illinois Interest Act.
(33) Each Mortgage Loan has been underwritten and serviced
substantially in accordance with the Seller's guidelines, subject to
such variances as the Seller has approved.
(34) No proceeds from any Mortgage Loan underlying the
Certificates were used to finance single-premium credit insurance
policies.
(35) No Mortgage Loan is subject to the requirements of
the Home Ownership and Equity Protection Act of 1994 and no mortgage
loan is in violation of any comparable state law.
(36) With respect to each Mortgage Loan in Loan Group I,
each Mortgage Loan had a principal balance at origination that
conformed to Xxxxxx Mae and Xxxxxxx Mac guidelines.
(37) The Master Servicer has fully furnished, in
accordance with the Fair Credit Reporting Act and its implementing
regulations, accurate and complete information (i.e., favorable and
unfavorable) on the credit files for the related Mortgagor for each
Mortgage Loan to Equifax, Experian and Trans Union Credit Information
Company on a monthly basis.
(38) With respect to each Mortgage Loan in Loan Group I,
no sub-prime Mortgage Loan originated on or after October 1, 2002 will
impose a prepayment premium for a term in excess of three years. Any
such sub-prime Mortgage Loans originated prior to such date, and any
non-sub-prime Mortgage Loans, will not impose prepayment penalties in
excess of five years.
(39) With respect to each Mortgage Loan in Loan Group I
originated on or after August 1, 2004 and underlying the Certificates,
neither the related Mortgage nor the related Mortgage Note requires the
Mortgagors to submit to arbitration to resolve any dispute arising out
of or relating in any way to the related mortgage loan transaction.
EXHIBIT A
FORM OF CLASS A AND SUBORDINATED CERTIFICATES
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO ISSUER OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE 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, AS AMENDED (THE "CODE").
PRIOR TO THE TERMINATION OF THE SUPPLEMENTAL INTEREST TRUST, ANY PERSON
ACQUIRING THIS CERTIFICATE DIRECTLY OR INDIRECTLY BY, ON BEHALF OF, OR WITH PLAN
ASSETS OF AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS
SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
AMENDED, OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, SHALL BE DEEMED
TO MAKE THE REPRESENTATIONS IN SECTION 5.02(c) OF THE POOLING AND SERVICING
AGREEMENT.
Certificate No. : [ ]
Cut-off Date : September 1, 2005
First Distribution Date : October 25, 2005
Initial Certificate Balance of this Certificate
("Denomination") : $[__]
Initial Certificate Balances of all Certificates of
this Class : $[__]
CUSIP : [_______]
INDYMAC ABS, INC.
Home Equity Mortgage Loan Asset-Backed Trust
Home Equity Mortgage Loan Asset-Backed Certificates, Series INABS 2005-C
Class [ ]
evidencing a percentage interest in the distributions allocable to the
Certificates of the above-referenced Class.
Principal in respect of this Certificate is distributable monthly as
stated herein. Accordingly, the Certificate Balance at any time may be less than
the Certificate Balance as set forth herein. This Certificate does not evidence
an obligation of, or an interest in, and is not guaranteed by the Depositor, the
Seller, the Master Servicer or the Trustee referred to below or any of their
respective affiliates. Neither this Certificate nor the Mortgage Loans are
guaranteed or insured by any governmental agency or instrumentality.
This certifies that [___________] is the registered owner of the
Percentage Interest evidenced by this Certificate (obtained by dividing the
Denomination of this Certificate by the aggregate of the Denominations of all
Certificates of the Class to which this Certificate belongs) in certain monthly
distributions pursuant to a Pooling and Servicing Agreement dated as of the
Cut-off Date specified above (the "Agreement") among IndyMac ABS, Inc., as
depositor (the "Depositor"), IndyMac Bank, F.S.B., as seller (in such capacity,
the "Seller") and as master servicer (in such capacity, the "Master Servicer"),
and Deutsche Bank National Trust Company, as trustee (the "Trustee"). To the
extent not defined herein, the capitalized terms used herein have the meanings
assigned in the Agreement. This Certificate is issued under and is subject to
the terms, provisions and conditions of the Agreement, to which Agreement the
Holder of this Certificate by virtue of the acceptance hereof assents and by
which such Holder is bound.
Reference is hereby made to the further provisions of this Certificate
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.
This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.
Dated: ________, 2005
DEUTSCHE BANK NATIONAL TRUST COMPANY,
not in its individual capacity, but solely
as Trustee
By:_______________________________________
Countersigned:
By:_______________________________________
Authorized Signatory of
DEUTSCHE BANK NATIONAL TRUST COMPANY,
not in its individual capacity,
but solely as Trustee
EXHIBIT B
FORM OF CLASS P CERTIFICATE
NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED
UNLESS THE PROPOSED TRANSFEREE DELIVERS TO THE TRUSTEE A TRANSFER AFFIDAVIT IN
ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE 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, AS AMENDED (THE "CODE").
SUBJECT TO THE PROVISIONS OF SECTION 5.02(b) OF THE AGREEMENT, NEITHER
THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
TRANSFEREE DELIVERS TO THE TRUSTEE EITHER A REPRESENTATION LETTER TO THE EFFECT
THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR A PLAN SUBJECT
TO SECTION 4975 OF THE CODE, AND IS NOT INVESTING ON BEHALF OF OR WITH ASSETS OF
SUCH A PLAN, OR, IF THE CERTIFICATE HAS BEEN THE SUBJECT OF AN ERISA-QUALIFYING
UNDERWRITING, A REPRESENTATION IN ACCORDANCE WITH THE PROVISIONS OF THE
AGREEMENT REFERRED TO HEREIN, OR AN OPINION OF COUNSEL IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN. NOTWITHSTANDING ANYTHING ELSE TO
THE CONTRARY HEREIN, ANY PURPORTED TRANSFER OF THIS CERTIFICATE TO OR ON BEHALF
OF AN EMPLOYEE BENEFIT PLAN SUBJECT TO ERISA OR TO THE CODE WITHOUT THE
REPRESENTATION LETTER OR THE OPINION OF COUNSEL SATISFACTORY TO THE TRUSTEE AS
DESCRIBED ABOVE SHALL BE VOID AND OF NO EFFECT.
ANY EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS
SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
AMENDED, OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, SHALL BE DEEMED
TO MAKE THE REPRESENTATIONS IN SECTION 5.02(C) OF THE POOLING AND SERVICING
AGREEMENT.
Certificate No. : [ ]
Cut-off Date : September 1, 2005
First Distribution Date : October 25, 2005
Percentage Interest of this Certificate
("Denomination") : [__]%
CUSIP : [_______]
INDYMAC ABS, INC.
Home Equity Mortgage Loan Asset-Backed Trust,
Home Equity Mortgage Loan Asset-Backed Certificates, Series INABS 2005-C
Class P
evidencing a percentage interest in the distributions allocable to the
Certificates of the above-referenced Class payable solely from
Prepayment Charges.
Distributions in respect of this Certificate are distributable monthly
as set forth herein. This Certificate does not evidence an obligation of, or an
interest in, and is not guaranteed by the Depositor, the Seller, the Master
Servicer or the Trustee referred to below or any of their respective affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.
This certifies that [_________] is the registered owner of the
Percentage Interest evidenced by this Certificate (obtained by dividing the
Denomination of this Certificate by the aggregate of the Denominations of all
Certificates of the Class to which this Certificate belongs) in certain monthly
distributions pursuant to a Pooling and Servicing Agreement dated as of the
Cut-off Date specified above (the "Agreement") among IndyMac ABS, Inc., as
depositor (the "Depositor"), IndyMac Bank, F.S.B., as seller (in such capacity,
the "Seller") and as master servicer (in such capacity, the "Master Servicer"),
and Deutsche Bank National Trust Company, as trustee (the "Trustee"). To the
extent not defined herein, the capitalized terms used herein have the meanings
assigned in the Agreement. This Certificate is issued under and is subject to
the terms, provisions and conditions of the Agreement, to which Agreement the
Holder of this Certificate by virtue of the acceptance hereof assents and by
which such Holder is bound. This Certificate represents an interest in the
Trust, but does not represent an interest in any REMIC.
This Certificate does not have a Certificate Balance or Pass-Through
Rate and will be entitled to distributions only to the extent set forth in the
Agreement and solely payable from Prepayment Charges. In addition, any
distribution of the proceeds of any remaining assets of the Trust will be made
only upon presentment and surrender of this Certificate at the office or agency
maintained by the Trustee.
No transfer of a Certificate of this Class shall be made unless such
disposition is exempt from the registration requirements of the Securities Act
of 1933, as amended (the "1933 Act"), and any applicable state securities laws
or is made in accordance with the 1933 Act and such laws. In the event of any
such transfer, subject to the provisions in Section 5.02(b) of the Agreement,
the Trustee shall require the transferor to execute a transferor certificate (in
substantially the form attached to the Pooling and Servicing Agreement) and
deliver either (i) an Investment Letter or the Rule 144A Letter, in either case
substantially in the form attached to the Agreement, or (ii) a written Opinion
of Counsel to the Trustee that such transfer may be made pursuant to an
exemption, describing the applicable exemption and the basis therefor, from the
1933 Act or is being made pursuant to the 1933 Act, which Opinion of Counsel
shall be an expense of the transferor.
Subject to the provisions in Section 5.02(b) of the Agreement, no
transfer of a Certificate of this Class shall be made unless the Trustee shall
have received either (i) a representation letter from the transferee of such
Certificate, acceptable to and in form and substance satisfactory to the
Trustee, to the effect that (x) such transferee is not an employee benefit plan
subject to Section 406 of ERISA or Section 4975 of the Code, nor a person acting
on behalf of any such plan, which representation letter shall not be an expense
of the Trustee or (y) if the Certificate has been the subject of an
ERISA-Qualifying Underwriting, a representation that the transferee is an
insurance company which is acquiring such Certificate with funds contained in an
"insurance company general account" (as such term is defined in Section V(e) of
Prohibited Transaction Class Exemption 95-60 ("PTCE 95-60")) and that the
purchase and holding of such Certificate satisfy the requirements for exemptive
relief under PTCE 95-60, or (ii) in the case of a Certificate presented for
registration in the name of an employee benefit plan subject to ERISA, or a plan
or arrangement subject to Section 4975 of the Code (or comparable provisions of
any subsequent enactments), or a trustee of any such plan or any other person
acting on behalf of any such plan or arrangement or using such plan's or
arrangement's assets, an Opinion of Counsel satisfactory to the Trustee, the NIM
Insurer and the Master Servicer, which Opinion of Counsel shall not be an
expense of the Trustee, the NIM Insurer, the Master Servicer or the Trust Fund,
addressed to the Trustee, to the effect that the purchase or holding of such
Certificate will not result in a nonexempt prohibited transaction under ERISA or
Section 4975 of the Code and will not subject the Trustee or the Master Servicer
to any obligation in addition to those expressly undertaken in this Agreement or
to any liability.
Reference is hereby made to the further provisions of this Certificate
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.
This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.
Dated: ________, 2005
DEUTSCHE BANK NATIONAL TRUST COMPANY,
not in its individual capacity, but solely
as Trustee
By:_______________________________________
Countersigned:
By:_______________________________________
Authorized Signatory of
DEUTSCHE BANK NATIONAL TRUST COMPANY,
not in its individual capacity,
but solely as Trustee
EXHIBIT C
FORM OF CLASS R CERTIFICATE
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"RESIDUAL INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE
TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE").
NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED
UNLESS THE PROPOSED TRANSFEREE DELIVERS TO THE TRUSTEE A TRANSFER AFFIDAVIT IN
ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.
SUBJECT TO THE PROVISIONS OF SECTION 5.02(b) OF THE AGREEMENT, NEITHER
THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
TRANSFEREE DELIVERS TO THE TRUSTEE EITHER A REPRESENTATION LETTER TO THE EFFECT
THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR A PLAN SUBJECT
TO SECTION 4975 OF THE CODE OR AN OPINION OF COUNSEL IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN. IN THE EVENT THAT SUCH
REPRESENTATION IS VIOLATED, OR ANY ATTEMPT TO TRANSFER TO A PLAN OR ARRANGEMENT
SUBJECT TO SECTION 406 OF ERISA OR A PLAN SUBJECT TO SECTION 4975 OF THE CODE,
OR A PERSON ACTING ON BEHALF OF ANY SUCH PLAN OR ARRANGEMENT OR USING THE ASSETS
OF ANY SUCH PLAN OR ARRANGEMENT, WITHOUT SUCH OPINION OF COUNSEL, SUCH ATTEMPTED
TRANSFER OR ACQUISITION SHALL BE VOID AND OF NO EFFECT.
Certificate No. : [ ]
Cut-off Date : September 1, 2005
Initial Certificate Balance of this Certificate
("Denomination") : $[__]
Initial Certificate Balances of all Certificates of
this Class : $[__]
CUSIP : [_______]
INDYMAC ABS, INC.
Home Equity Mortgage Loan Asset-Backed Trust,
Home Equity Mortgage Loan Asset-Backed Certificates, Series INABS 2005-C
Class R
evidencing the distributions allocable to the Class R Certificates with
respect to a Trust Fund consisting primarily of a pool of fixed-rate
and adjustable-rate conventional loans (the "Mortgage Loans") secured
by first liens on one- to four-family residential properties IndyMac
ABS, Inc., as Depositor
Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Balance at any time may be less
than the Certificate Balance as set forth herein. This Certificate does not
evidence an obligation of, or an interest in, and is not guaranteed by the
Depositor, the Seller, the Master Servicer or the Trustee referred to below or
any of their respective affiliates. Neither this Certificate nor the Mortgage
Loans are guaranteed or insured by any governmental agency or instrumentality.
This certifies that [___] is the registered owner of the Percentage
Interest (obtained by dividing the Denomination of this Certificate by the
aggregate of the Denominations of all Certificates of the Class to which this
Certificate belongs) in certain monthly distributions pursuant to a Pooling and
Servicing Agreement dated as of the Cut-off Date specified above (the
"Agreement") among IndyMac ABS, Inc., as depositor (the "Depositor"), IndyMac
Bank, F.S.B., as seller (in such capacity, the "Seller") and as master servicer
(in such capacity, the "Master Servicer"), and Deutsche Bank National Trust
Company, as trustee (the "Trustee"). To the extent not defined herein, the
capitalized terms used herein have the meanings assigned in the Agreement. This
Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.
Any distribution of the proceeds of any remaining assets of the Trust
Fund will be made only upon presentment and surrender of this Class R
Certificate at the office or agency maintained by the Trustee.
Subject to the provisions in Section 5.02(b) of the Agreement, no
transfer of a Class R Certificate shall be made unless the Trustee shall have
received either (i) a representation letter from the transferee of such
Certificate, acceptable to and in form and substance satisfactory to the
Trustee, to the effect that such transferee is not an employee benefit plan or
arrangement subject to Section 406 of ERISA, or a plan or arrangement subject to
Section 4975 of the Code or a person acting on behalf of any such plan or
arrangement or using the assets of any such plan or arrangement to effect such
transfer, which representation letter shall not be an expense of the Trustee,
the Master Servicer or the Trust Fund or (ii) an Opinion of Counsel satisfactory
to the Trustee, the NIM Insurer and the Master Servicer to the effect that the
purchase or holding of such Class R Certificate will not result in a non-exempt
prohibited transaction under ERISA or Section 4975 of the Code and will not
subject the Trustee, the NIM Insurer or the Master Servicer to any obligation in
addition to those expressly undertaken in the Agreement or to any liability,
which Opinion of Counsel shall not be an expense of the Trustee, the NIM
Insurer, the Master Servicer or the Trust Fund. In the event that such
representation is violated, or any attempt to transfer to a plan or arrangement
subject to Section 406 of ERISA or a plan subject to Section 4975 of the Code,
or a person acting on behalf of any such plan or arrangement or using the assets
of any such plan or arrangement, without such Opinion of Counsel, such attempted
transfer or acquisition shall be void and of no effect.
Each Holder of this Class R Certificate shall be deemed by the
acceptance or acquisition an Ownership Interest in this Class R Certificate to
have agreed to be bound by the following provisions, and the rights of each
Person acquiring any Ownership Interest in this Class R Certificate are
expressly subject to the following provisions: (i) each Person holding or
acquiring any Ownership Interest in this Class R Certificate shall be a
Permitted Transferee and shall promptly notify the Trustee of any change or
impending change in its status as a Permitted Transferee, (ii) no Ownership
Interest in this Class R Certificate may be registered on the Closing Date or
thereafter transferred, and the Trustee shall not register the Transfer of this
Certificate unless, in addition to the certificates required to be delivered to
the Trustee under Section 5.02(b) of the Agreement, the Trustee shall have been
furnished with a Transfer Affidavit of the initial owner or the proposed
transferee in the form attached as Exhibit I to the Agreement (subject to the
limitations with respect thereto as set forth in Section 5.02(b) of the
Agreement), (iii) each Person holding or acquiring any Ownership Interest in
this Class R Certificate shall agree (A) to obtain a Transfer Affidavit from any
other Person to whom such Person attempts to Transfer its Ownership Interest
this Class R Certificate (subject to the limitations with respect thereto as set
forth in Section 5.02(b) of the Agreement), (B) to obtain a Transfer Affidavit
from any Person for whom such Person is acting as nominee, trustee or agent in
connection with any Transfer of this Class R Certificate (subject to the
limitations with respect thereto as set forth in Section 5.02(b) of the
Agreement) and (C) not to Transfer the Ownership Interest in this Class R
Certificate or to cause the Transfer of the Ownership Interest in this Class R
Certificate to any other Person if it has actual knowledge that such Person is
not a Permitted Transferee and (iv) any attempted or purported Transfer of the
Ownership Interest in this Class R Certificate in violation of the provisions
herein shall be absolutely null and void and shall vest no rights in the
purported Transferee.
Reference is hereby made to the further provisions of this Certificate
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.
This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.
Dated: ________, 2005
DEUTSCHE BANK NATIONAL TRUST COMPANY,
not in its individual capacity, but solely
as Trustee
By:_______________________________________
Countersigned:
By:_______________________________________
Authorized Signatory of
DEUTSCHE BANK NATIONAL TRUST COMPANY,
not in its individual capacity,
but solely as Trustee
EXHIBIT D
FORM OF CLASS C CERTIFICATE
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE 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, AS AMENDED (THE "CODE").
NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED
UNLESS THE PROPOSED TRANSFEREE DELIVERS TO THE TRUSTEE A TRANSFER AFFIDAVIT IN
ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.
SUBJECT TO THE PROVISIONS IN SECTION 5.02(b) OF THE AGREEMENT, NEITHER
THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
TRANSFEREE DELIVERS TO THE TRUSTEE EITHER A REPRESENTATION LETTER TO THE EFFECT
THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR A PLAN SUBJECT
TO SECTION 4975 OF THE CODE OR AN OPINION OF COUNSEL IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN. IN THE EVENT THAT SUCH
REPRESENTATION IS VIOLATED, OR ANY ATTEMPT TO TRANSFER TO A PLAN OR ARRANGEMENT
SUBJECT TO SECTION 406 OF ERISA OR A PLAN SUBJECT TO SECTION 4975 OF THE CODE,
OR A PERSON ACTING ON BEHALF OF ANY SUCH PLAN OR ARRANGEMENT OR USING THE ASSETS
OF ANY SUCH PLAN OR ARRANGEMENT, WITHOUT SUCH OPINION OF COUNSEL, SUCH ATTEMPTED
TRANSFER OR ACQUISITION SHALL BE VOID AND OF NO EFFECT.
ANY EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS
SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
AMENDED, OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, SHALL BE DEEMED
TO MAKE THE REPRESENTATIONS IN SECTION 5.02(C) OF THE POOLING AND SERVICING
AGREEMENT.
Certificate No. : [ ]
Cut-off Date : September 1, 2005
First Distribution Date : October 25, 2005
Percentage Interest of this Certificate
("Denomination") : [__]%
CUSIP :
INDYMAC ABS, INC.
Home Equity Mortgage Loan Asset-Backed Trust,
Home Equity Mortgage Loan Asset-Backed Certificates, Series INABS 2005-C
Class C
evidencing a percentage interest in the distributions allocable to the
Certificates of the above-referenced Class.
Distributions in respect of this Certificate are distributable monthly
as set forth herein. This Certificate does not evidence an obligation of, or an
interest in, and is not guaranteed by the Depositor, the Seller, the Master
Servicer or the Trustee referred to below or any of their respective affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.
This certifies that [______] is the registered owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the aggregate of the Denominations of all Certificates of
the Class to which this Certificate belongs) in certain monthly distributions
pursuant to a Pooling and Servicing Agreement dated as of the Cut-off Date
specified above (the "Agreement") among IndyMac ABS, Inc., as depositor (the
"Depositor"), IndyMac Bank, F.S.B., as seller (in such capacity, the "Seller")
and as master servicer (in such capacity, the "Master Servicer"), and Deutsche
Bank National Trust Company, as trustee (the "Trustee"). To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.
This Certificate does not have a Certificate Balance or Pass-Through
Rate and will be entitled to distributions only to the extent set forth in the
Agreement. In addition, any distribution of the proceeds of any remaining assets
of the Trust will be made only upon presentment and surrender of this
Certificate at the office or agency maintained by the Trustee.
No transfer of a Certificate of this Class shall be made unless such
disposition is exempt from the registration requirements of the Securities Act
of 1933, as amended (the "1933 Act"), and any applicable state securities laws
or is made in accordance with the 1933 Act and such laws. In the event of any
such transfer, subject to the provisions in Section 5.02(b) of the Agreement,
the Trustee shall require the transferor to execute a transferor certificate (in
substantially the form attached to the Pooling and Servicing Agreement) and
deliver either (i) an Investment Letter or the Rule 144A Letter, in either case
substantially in the form attached to the Agreement, or (ii) a written Opinion
of Counsel to the Trustee that such transfer may be made pursuant to an
exemption, describing the applicable exemption and the basis therefor, from the
1933 Act or is being made pursuant to the 1933 Act, which Opinion of Counsel
shall be an expense of the transferor.
Subject to the provisions in Section 5.02(b) of the Agreement, no
transfer of a Certificate of this Class shall be made unless the Trustee shall
have received either (i) a representation letter from the transferee of such
Certificate, acceptable to and in form and substance satisfactory to the
Trustee, to the effect that such transferee is not an employee benefit plan or
other benefit plan or arrangement subject to Section 406 of ERISA or Section
4975 of the Code, or a person acting on behalf of any such plan or investing
plan assets of any such plan, which representation letter shall not be an
expense of the Trustee, or (ii) in the case of a Certificate presented for
registration in the name of an employee benefit plan subject to ERISA, or a plan
or arrangement subject to Section 4975 of the Code (or comparable provisions of
any subsequent enactments), or a trustee of any such plan or any other person
acting on behalf of any such plan or arrangement or using such plan's or
arrangement's assets, an Opinion of Counsel satisfactory to the Trustee, the NIM
Insurer and the Master Servicer, which Opinion of Counsel shall not be an
expense of the Trustee, the NIM Insurer, the Master Servicer or the Trust Fund,
addressed to the Trustee, to the effect that the purchase or holding of such
Certificate will not result in a nonexempt prohibited transaction under ERISA or
Section 4975 of the Code and will not subject the Trustee, the NIM Insurer or
the Master Servicer to any obligation in addition to those expressly undertaken
in this Agreement or to any liability.
Reference is hereby made to the further provisions of this Certificate
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.
This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.
Dated: ________, 2005
DEUTSCHE BANK NATIONAL TRUST COMPANY, not in
its individual capacity, but solely as
Trustee
By: ________________________________________
Countersigned:
By: ______________________________________
Authorized Signatory of
DEUTSCHE BANK NATIONAL TRUST COMPANY,
not in its individual capacity,
but solely as Trustee
EXHIBIT E
[Reserved].
EXHIBIT F
FORM OF REVERSE OF CERTIFICATES
INDYMAC ABS, INC.
Home Equity Mortgage Loan Asset-Backed Trust,
Home Equity Mortgage Loan Asset-Backed Certificates
This Certificate is one of a duly authorized issue of Certificates
designated as IndyMac ABS, Inc., Home Equity Mortgage Loan Asset-Backed
Certificates, of the Series specified on the face hereof (herein collectively
called the "Certificates"), and representing a beneficial ownership interest in
the Trust Fund created by the Agreement.
The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.
This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.
Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (the "Distribution Date"), commencing on the
first Distribution Date specified on the face hereof, to the Person in whose
name this Certificate is registered at the close of business on the applicable
Record Date in an amount equal to the product of the Percentage Interest
evidenced by this Certificate and the amount required to be distributed to
Holders of Certificates of the Class to which this Certificate belongs on such
Distribution Date pursuant to the Agreement. The Record Date applicable to each
Distribution Date is the last Business Day of the month next preceding the month
of such Distribution Date.
Distributions on this Certificate shall be made by wire transfer of
immediately available funds to the account of the Holder hereof at a bank or
other entity having appropriate facilities therefor, if such Certificateholder
shall have so notified the Trustee in writing at least five (5) Business Days
prior to the related Record Date and such Certificateholder shall satisfy the
conditions to receive such form of payment set forth in the Agreement, or, if
not, by check mailed by first class mail to the address of such
Certificateholder appearing in the Certificate Register. The final distribution
on each Certificate will be made in like manner, but only upon presentment and
surrender of such Certificate at the location specified in the notice to
Certificateholders of such final distribution.
The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Master Servicer and the Trustee with the consent of the
NIM Insurer and the Holders of Certificates affected by such amendment
evidencing the requisite Percentage Interest, as provided in the Agreement. Any
such consent by the Holder of this Certificate shall be conclusive and binding
on such Holder and upon all future Holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange therefor or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.
As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Trustee upon surrender of this Certificate for registration of
transfer at the office or agency maintained by the Trustee, accompanied by a
written instrument of transfer in form satisfactory to the Trustee and the
Certificate Registrar duly executed by the holder hereof or such holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations and evidencing the same aggregate
Percentage Interest in the Trust Fund will be issued to the designated
transferee or transferees.
The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.
No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.
The Depositor, the Master Servicer, the Seller and the Trustee and any
agent of the Depositor or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Trustee or any such agent shall be affected by any notice to the
contrary.
On any Distribution Date following the date on which the aggregate
Stated Principal Balance of the Mortgage Loans as of the last day of the related
Remittance Period is less than 10% of the sum of the Cut-off Date Principal
Balance and the Subsequent Cut-off Date Principal Balances, as applicable, of
the Mortgage Loans, the Master Servicer will have the option to purchase, in
whole, from the Trust Fund all remaining Mortgage Loans and all property
acquired in respect of the Mortgage Loans at a purchase price determined as
provided in the Agreement. The obligations and responsibilities created by the
Agreement will terminate as provided in Section 9.01 of the Agreement.
Any term used herein that is defined in the Agreement shall have the
meaning assigned in the Agreement, and nothing herein shall be deemed
inconsistent with that meaning.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto
(Please print or typewrite name and address including postal zip code of
assignee)
the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust Fund.
I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address:
---------------------.
Dated:
Signature by or on behalf of assignor
DISTRIBUTION INSTRUCTIONS
The assignee should include the following for purposes of distribution:
Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to ____________________________ , for the account of
_____________________________________ , account number___________, or, if mailed
by check, to __________________________ , Applicable statements should be mailed
to _____________________________________ , .
This information is provided by ________________________ , the assignee
named above, or ________________________________________ , as its agent.
STATE OF_____________ )
) ss.:
COUNTY OF___________ )
On the ___ th day of __________, 200_ before me, a notary public in and
for said State, personally appeared _______________________, known to me who,
being by me duly sworn, did depose and say that he executed the foregoing
instrument.
_________________________________
Notary Public
[Notarial Seal]
EXHIBIT G-1
FORM OF INITIAL CERTIFICATION OF TRUSTEE
[date]
[Depositor]
[Master Servicer]
[Seller]
____________________________
____________________________
Re: Pooling and Servicing Agreement among IndyMac ABS, Inc., as
Depositor, IndyMac Bank, F.S.B., as Seller and Master
Servicer, and Deutsche Bank National Trust Company, as
Trustee, Home Equity Mortgage Loan Asset-Backed Trust, Series
INABS 2005-C, Home Equity Mortgage Loan Asset-Backed
Certificates, Series INABS 0000-X
Xxxxxxxxx:
In accordance with Section 2.02 of the above-captioned Pooling and
Servicing Agreement (the "POOLING AND SERVICING AGREEMENT"), the undersigned, as
Trustee, hereby certifies that, as to each Mortgage Loan listed in the Mortgage
Loan Schedule (other than any Mortgage Loan listed in the attached schedule), it
has received:
(i) the original Mortgage Note, endorsed as provided in the following
form: "Pay to the order of ________, without recourse"; and
(ii) a duly executed assignment of the Mortgage (which may be included
in a blanket assignment or assignments); PROVIDED, HOWEVER, that it has received
no assignment with respect to any Mortgage for which the related Mortgaged
Property is located in the Commonwealth of Puerto Rico.
Based on its review and examination and only as to the foregoing
documents, such documents appear regular on their face and related to such
Mortgage Loan.
The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Trustee makes no representations as to: (i)
the validity, legality, sufficiency, enforceability or genuineness of any of the
documents contained in each Mortgage File of any of the Mortgage Loans
identified on the Mortgage Loan Schedule, or (ii) the collectability,
insurability, effectiveness or suitability of any such Mortgage Loan.
Capitalized words and phrases used herein have the respective meanings
assigned to them in the Pooling and Servicing Agreement.
DEUTSCHE BANK NATIONAL TRUST COMPANY
as Trustee
By:_________________________________
Name:_______________________________
Title:______________________________
EXHIBIT G-2
FORM OF DELAYED DELIVERY CERTIFICATION
[date]
[Depositor]
[Master Servicer]
Re: Pooling and Servicing Agreement among IndyMac ABS, Inc., as
Depositor, IndyMac Bank, F.S.B., as Seller and Master
Servicer, and Deutsche Bank National Trust Company, as
Trustee, Home Equity Mortgage Loan Asset-Backed Trust, Series
INABS 2005-C, Home Equity Mortgage Loan Asset-Backed
Certificates, Series Inabs 0000-X
Xxxxxxxxx:
[Reference is made to the Initial Certification of Trustee relating to
the above-referenced series, with the schedule of exceptions attached thereto,
delivered by the undersigned, as Trustee, on the Closing Date in accordance with
Section 2.02 of the above-captioned Pooling and Servicing Agreement.] The
undersigned hereby certifies that as to each Delayed Delivery Mortgage Loan
listed on the Schedule A attached hereto (other than any Mortgage Loan paid in
full or listed on Schedule B attached hereto) it has received:
(i) (A) the original Mortgage Note, endorsed by
manual or facsimile signature in blank in the following form:
"Pay to the order of ______________________________ without
recourse," with all intervening endorsements showing a
complete chain of endorsement from the originator to the
Person endorsing the Mortgage Note (each such endorsement
being sufficient to transfer all interest of the party so
endorsing, as noteholder or assignee thereof, in that Mortgage
Note) and (B) with respect to any Lost Mortgage Note, a lost
note affidavit from the Seller stating that the original
Mortgage Note was lost or destroyed, together with a copy of
such Mortgage Note;
(ii) a duly executed assignment of the Mortgage
(which may be included in a blanket assignment or
assignments), together with, except as provided below, all
interim recorded assignments of such mortgage (each such
assignment, when duly and validly completed, to be in
recordable form and sufficient to effect the assignment of and
transfer to the assignee thereof, under the Mortgage to which
the assignment relates); PROVIDED, HOWEVER, that such
assignment of Mortgage need not be delivered in the case of a
Mortgage for which the related Mortgaged Property is located
in the Commonwealth of Puerto Rico.
Based on its review and examination and only as to the foregoing
documents, such documents appear regular on their face and related to the
Mortgage Loan.
The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
above-referenced Pooling and Servicing Agreement. The Trustee makes no
representations as to: (i) the validity, legality, sufficiency, enforceability
or genuineness of any of the documents contained in each Mortgage File of any of
the Mortgages identified on the [Mortgage Loan Schedule][Loan Number and
Borrower Identification Mortgage Loan Schedule] or (ii) the collectability,
insurability, effectiveness or suitability of any such Mortgage Loan.
Capitalized words and phrases used herein have the respective meanings
assigned to them in the above-captioned Pooling and Servicing Agreement.
DEUTSCHE BANK NATIONAL TRUST COMPANY
as Trustee
By: ________________________________
Name:
Title:
EXHIBIT H
FORM OF FINAL CERTIFICATION OF TRUSTEE
[date]
[Depositor]
[Master Servicer]
[Seller]
___________________________
___________________________
Re: Pooling and Servicing Agreement among IndyMac ABS, Inc., as
Depositor, IndyMac Bank, F.S.B., as Seller and Master
Servicer, and Deutsche Bank National Trust Company, as
Trustee, Home Equity Mortgage Loan Asset-Backed Trust, Series
INABS 2005-C, Home Equity Mortgage Loan Asset-Backed
CERTIFICATES, SERIES INABS 0000-X
Xxxxxxxxx:
In accordance with Section 2.02 of the above-captioned Pooling and
Servicing Agreement (the "POOLING AND SERVICING AGREEMENT"), the undersigned, as
Trustee, hereby certifies that as to each Mortgage Loan listed in the Mortgage
Loan Schedule (other than any Mortgage Loan paid in full or listed on the
attached Document Exception Report) it has received:
(i) The original Mortgage Note, endorsed in the form provided in
Section 2.01(c)(i) of the Pooling and Servicing Agreement, with all intervening
endorsements showing a complete chain of endorsement from the originator to the
Seller.
(ii) The original recorded Mortgage.
(iii) A duly executed assignment of the Mortgage in the form provided
in Section 2.01(c)(iii) of the Pooling and Servicing Agreement; PROVIDED,
HOWEVER, that it has received no assignment with respect to any Mortgage for
which the related Mortgaged Property is located in the Commonwealth of Puerto
Rico, or, if the Depositor has certified or the Trustee otherwise knows that the
related Mortgage has not been returned from the applicable recording office, a
copy of the assignment of the Mortgage (excluding information to be provided by
the recording office).
(iv) The original or duplicate original recorded assignment or
assignments of the Mortgage showing a complete chain of assignment from the
originator to the Seller.
(v) The original or duplicate original lender's title policy and all
riders thereto or, any one of an original title binder, an original preliminary
title report or an original title commitment, or a copy thereof certified by the
title company.
Based on its review and examination and only as to the foregoing
documents, (a) such documents appear regular on their face and related to such
Mortgage Loan and (b) the information set forth in items (i), (ii), (iii), (iv),
(vi) and (xi)(a) of the definition of the "Mortgage Loan Schedule" in Section
1.01 of the Pooling and Servicing Agreement accurately reflects information set
forth in the Mortgage File.
The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Trustee makes no representations as to: (i)
the validity, legality, sufficiency, enforceability or genuineness of any of the
documents contained in each Mortgage File of any of the Mortgage Loans
identified on the Mortgage Loan Schedule; or (ii) the collectability,
insurability, effectiveness or suitability of any such Mortgage Loan.
Notwithstanding anything herein to the contrary, the Trustee has made no
determination and makes no representations as to whether (i) any endorsement is
sufficient to transfer all interest of the party so endorsing, as Noteholder or
assignee thereof, in that Mortgage Note or (ii) any assignment is in recordable
form or sufficient to effect the assignment of and transfer to the assignee
thereof, under the Mortgage to which the assignment relates.
Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Pooling and Servicing Agreement.
DEUTSCHE BANK NATIONAL TRUST COMPANY
as Trustee
By:_________________________________
Name:
Title:
EXHIBIT I
FORM OF TRANSFER AFFIDAVIT
IndyMac ABS, Inc.,
Home Equity Mortgage Loan Asset-Backed Trust, Series INABS 2005-C
Home Equity Mortgage Loan Asset-Backed Certificates,
Series INABS 2005-C
STATE OF_____________ )
) ss.:
COUNTY OF___________ )
The undersigned, being first duly sworn, deposes and says as follows:
1. The undersigned is an officer of ____________________________, the
proposed Transferee of an Ownership Interest in a Class R Certificate (the
"CERTIFICATE") issued pursuant to the Pooling and Servicing Agreement (the
"AGREEMENT"), relating to the above-referenced Series, by and among IndyMac ABS,
Inc., as depositor (the "DEPOSITOR"), IndyMac Bank, F.S.B., as seller and master
servicer and Deutsche Bank National Trust Company, as trustee. Capitalized terms
used, but not defined herein or in Annex 1, shall have the meanings ascribed to
such terms in the Agreement. The Transferee has authorized the undersigned to
make this affidavit on behalf of the Transferee.
2. The Transferee is, as of the date hereof, and will be, as of the
date of the Transfer, a Permitted Transferee. The Transferee is acquiring its
Ownership Interest in the Certificate for its own account.
3. The Transferee has been advised of, and understands that: (i) a tax
will be imposed on Transfers of the Certificate to Persons that are not
Permitted Transferees; (ii) such tax will be imposed on the transferor, or, if
such Transfer is through an agent (which includes a broker, nominee or
middleman) for a Person that is not a Permitted Transferee, on the agent; and
(iii) the Person otherwise liable for the tax shall be relieved of liability for
the tax if the Transferee furnishes to such Person an affidavit that such
Transferee is a Permitted Transferee and, at the time of Transfer, such Person
does not have actual knowledge that the affidavit is false.
4. The Transferee has been advised of, and understands that a tax will
be imposed on a "pass-through entity" holding the Certificate if at any time
during the taxable year of the pass-through entity a Person that is not a
Permitted Transferee is the record holder of an interest in such entity. The
Transferee understands that such tax will not be imposed for any period with
respect to which the record holder furnishes to the pass-through entity an
affidavit that such record holder is a Permitted Transferee and the pass-through
entity does not have actual knowledge that such affidavit is false. (For this
purpose, a "pass-through entity" includes a regulated investment company, a real
estate investment trust or common trust fund, a partnership, trust or estate,
and certain cooperatives and, except as may be provided in the Treasury
Regulations, persons holding interests in pass-through entities as a nominee for
another Person.)
5. The Transferee has reviewed Section 5.02(c) of the Agreement
(attached hereto as Annex 2 and incorporated herein by reference) and
understands the legal consequences of the acquisition of an Ownership Interest
in the Certificate including, without limitation, the restrictions on subsequent
Transfers and the provisions regarding voiding the Transfer and mandatory sales.
The Transferee expressly agrees to be bound by and to abide by the provisions of
Section 5.02(c) of the Agreement and the restrictions noted on the face of the
Certificate. The Transferee understands and agrees that any breach of any of the
representations included herein shall render the Transfer to the Transferee
contemplated hereby null and void.
6. The Transferee agrees to require a Transfer Affidavit from any
Person to whom the Transferee attempts to Transfer its Ownership Interest in the
Certificate, and in connection with any Transfer by a Person for whom the
Transferee is acting as nominee, trustee or agent, and the Transferee will not
Transfer its Ownership Interest or cause any Ownership Interest to be
Transferred to any Person that the Transferee knows is not a Permitted
Transferee. In connection with any such Transfer by the Transferee, the
Transferee agrees to deliver to the Trustee a certificate substantially in the
form set forth as Exhibit J to the Agreement (a "TRANSFEROR CERTIFICATE") to the
effect that such Transferee has no actual knowledge that the Person to which the
Transfer is to be made is not a Permitted Transferee.
7. The Transferee's taxpayer identification number is ________________.
8. The Transferee is a U.S. Person as defined in Code Section
7701(a)(30).
9. The Transferee is aware that the Certificate may be a "noneconomic
residual interest" within the meaning of Treasury regulations promulgated
pursuant to the Code and that the transferor of a noneconomic residual interest
will remain liable for any taxes due with respect to the income on such residual
interest, unless no significant purpose of the transfer was to impede the
assessment or collection of tax. The Transferee does not have the intention to
impede the assessment or collection of any tax legally required to be paid with
respect to the Certificate.
10. Transferee has historically paid the Transferee's debts as they
become due, and Transferee intends, and believes that the Transferee will be
able, to continue to pay Transferee's debts as such debts become due in the
future. Transferee has a valid business purpose for purchasing the Residuals.
11. Transferee is not a foreign permanent establishment or fixed base
(within the meaning of an applicable income tax treaty) (a "FOREIGN BASE") of a
U.S. taxpayer. In addition, the Transferee will not (a) transfer the Class R
Certificates, directly or indirectly, to a Foreign Base, and (b) cause income
from the Class R Certificates to be attributable to a Foreign Base of the
Transferee or another U.S. taxpayer.
12. Either:
(a) (i) At the time of the transfer, and at the close of each
of the Transferee's two fiscal years preceding the Transferee's fiscal year of
transfer, the Transferee's gross assets for financial reporting purposes exceed
$100 million and its net assets for financial reporting purposes exceed $10
million. For purposes of the preceding sentence, the gross assets and net assets
of a Transferee do not include any obligation of any Related Person or any other
asset if a principal purpose for holding or acquiring the other asset is to
permit the Transferee to satisfy the conditions of this paragraph 12(a); and
(ii) the Transferee is an Eligible Corporation and hereby agrees that any
subsequent transfer of the interest will be to another Eligible Corporation in a
transaction that satisfies this Transfer Affidavit, including this paragraph
12(a). For the purpose of this affidavit, the term "ELIGIBLE CORPORATION" means
any domestic C corporation (as defined in section 1361(a)(2) of the Code) other
than a corporation which is exempt from, or is not subject to, tax under section
11 of the Code, an entity described in section 851(a) or 856(a) of the Code, a
REMIC or an organization to which part I, subchapter T, chapter 1, subtitle A of
the Code applies, and the term "RELATED PERSON" means any person that bears a
relationship to the Transferee enumerated in section 267(b) or 707(b)(1) of the
Code, using "20 percent" instead of "50 percent" where it appears under the
provisions; or is under common control (within the meaning of section 52(a) and
(b) of the Code) with the Transferee; or
(b)(i) The Transferee is a United States Person; and (ii) the
present value of the anticipated tax liabilities associated with holding the
residual interest does not exceed the sum of: (A) the present value of any
consideration given to the Transferee to acquire the interest, (B) the present
value of the expected future distributions on the interest and (C) the present
value of the anticipated tax savings associated with holding the interest as the
REMIC generates losses. For purposes of calculating the aforementioned present
values: (i) the transferee has assumed that it pays tax at a rate equal to the
highest rate of tax specified in Code Section 11(b)(1) (unless the Transferee
has been subject to the alternative minimum tax under Section 55 of the Code in
the preceding two years and will compute its taxable income in the current
taxable year using the alternative minimum tax rate, in which case the
Transferee can assume that it pays tax at the rate specified in Section
55(b)(1)(B) of the Code (provided, that the Transferee states in this Transfer
Affidavit that it is using such alternate rate and that has been subject to the
alternative minimum tax under Section 55 of the Code in the preceding two years)
and will compute its taxable income in the current taxable year using the
alternative minimum tax rate); and (ii) the Transferee uses a discount rate
equal to the Federal short-term rate prescribed by section 1274(d) of the Code
for the month of the transfer and the compounding period used by the Transferee.
13. The Transferee hereby represents to and for the benefit of the
transferor that the Transferee intends to pay any tax associated with holding
the Ownership Interest as they become due, fully understanding that it may incur
tax liabilities in excess of any cash flows generated by its Ownership Interest.
14. The Transferee is not an employee benefit plan that is subject to
ERISA or a plan that is subject to Section 4975 of the Code, and the Transferee
is not acting on behalf of or using plan assets of such a plan.
IN WITNESS WHEREOF, the Transferee has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
duly authorized officer and its corporate seal to be hereunto affixed, duly
attested, this ____ day of __________________, 20__.
___________________________________
Print Name of Transferee
By: _______________________________
Name:
Title:
[Corporate Seal]
ATTEST:
____________________________________
[Assistant] Secretary
Personally appeared before me the above-named ____________, known or
proved to me to be the same person who executed the foregoing instrument and to
be the ______________ of the Transferee, and acknowledged that he executed the
same as his free act and deed and the free act and deed of the Transferee.
Subscribed and sworn before me this ____ day of ________ , 20__.
_______________________________________
NOTARY PUBLIC
My Commission expires the _____ day of
____________, 20__
ANNEX 1
to
EXHIBIT I
CERTAIN DEFINITIONs
"OWNERSHIP INTEREST": As to any Certificate, any ownership interest in
the Certificate, including any interest in the Certificate as its Holder and any
other interest in it, whether direct or indirect, legal or beneficial.
"PERMITTED TRANSFEREE": Any Person other than (i) the United States,
any State or political subdivision thereof, or any agency or instrumentality of
any of the foregoing, (ii) a foreign government, International Organization or
any agency or instrumentality of either of the foregoing, (iii) an organization
(except certain farmers' cooperatives described in Code Section 521) that is
exempt from tax imposed by Chapter 1 of the Code (including the tax imposed by
Code Section 511 on unrelated business taxable income) on any excess inclusions
(as defined in Code Section 860E(c)(1)) with respect to any Class R Certificate,
(iv) rural electric and telephone cooperatives described in Code Section
1381(a)(2)(c), (v) a Person that is not a U.S. Person and (vi) any other Person
so designated by the Depositor based upon an Opinion of Counsel that the
Transfer of an Ownership Interest in a Class R Certificate to such Person may
cause the Trust Fund to fail to qualify as a REMIC at any time that certain
Certificates are Outstanding. The terms "UNITED STATES," "STATE," and
"INTERNATIONAL ORGANIZATION" have the meanings in Code Section 7701 or successor
provisions. A corporation will not be treated as an instrumentality of the
United States or of any State or political subdivision thereof if all of its
activities are subject to tax, and, with the exception of the FHLMC, a majority
of its board of directors is not selected by such governmental unit.
"PERSON": Any individual, corporation, partnership, joint venture,
bank, joint stock company, trust (including any beneficiary thereof),
unincorporated organization or government or any agency or political subdivision
thereof.
"TRANSFER": Any direct or indirect transfer or sale of any Ownership
Interest in a Certificate, including the acquisition of a Certificate by the
Depositor.
"TRANSFEREE": Any Person who is acquiring by Transfer any Ownership
Interest in a Certificate.
"UNITED STATES PERSON" OR "U.S. PERSON": (i) A citizen or resident of
the United States; (ii) a corporation (or entity treated as a corporation for
tax purposes) created or organized in the United States or under the laws of the
United States or of any state thereof, including, for this purpose, the District
of Columbia; (iii) a partnership (or entity treated as a partnership for tax
purposes) organized in the United States or under the laws of the United States
or of any state thereof, including, for this purpose, the District of Columbia
(unless provided otherwise by future Treasury regulations); (iv) an estate whose
income is includible in gross income for United States income tax purposes
regardless of its source; (v) a trust, if a court within the United States is
able to exercise primary supervision over the administration of the trust and
one or more U.S. Persons have authority to control all substantial decisions of
the trust; or (vi) to the extent provided in Treasury regulations, certain
trusts in existence on August 20, 1996 that are treated as U.S. Persons before
that date and that elect to continue to be treated as U.S. Persons.
ANNEX 2
to
EXHIBIT I
SECTION 5.02 (C) OF THE AGREEMENT
(c) Each Person who has or who acquires any Ownership Interest in a
Residual Certificate shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the following provisions, and
the rights of each Person acquiring any Ownership Interest in a Residual
Certificate are expressly subject to the following provisions:
(i) Each Person holding or acquiring any Ownership Interest in
a Residual Certificate shall be a Permitted Transferee and shall
promptly notify the Trustee (with a copy of any such notice to the NIM
Insurer) of any change or impending change in its status as a Permitted
Transferee.
(ii) No Ownership Interest in a Residual Certificate may be
registered on the Closing Date or thereafter transferred, and the
Trustee shall not register the Transfer of any Residual Certificate
unless, in addition to the certificates required to be delivered to the
Trustee under subparagraph (b) above, the Trustee shall have been
furnished with an affidavit (a copy of which shall be provided to the
NIM Insurer) (a "TRANSFER AFFIDAVIT") of the initial owner or the
proposed transferee in the form of Exhibit I (subject to the
limitations with respect thereto as set forth in Section 5.02(b)).
(iii) Subject to the limitations set forth in Section 5.02(b),
each Person holding or acquiring any Ownership Interest in a Residual
Certificate shall agree:
(A) to obtain a Transfer Affidavit from any other
Person to whom such Person attempts to Transfer its Ownership
Interest in a Residual Certificate;
(B) to obtain a Transfer Affidavit from any Person
for whom such Person is acting as nominee, trustee or agent in
connection with any Transfer of a Residual Certificate; and
(C) not to Transfer its Ownership Interest in a
Residual Certificate or to cause the Transfer of an Ownership
Interest in a Residual Certificate to any other Person if it
has actual knowledge that such Person is not a Permitted
Transferee.
(iv) Any attempted or purported Transfer of any Ownership
Interest in a Residual Certificate in violation of this Section 5.02(c)
shall be absolutely null and void and shall vest no rights in the
purported Transferee. If any purported transferee shall become a Holder
of a Residual Certificate in violation of this Section 5.02(c), then
the last preceding Permitted Transferee shall be restored to all rights
as Holder thereof retroactive to the date of registration of Transfer
of such Residual Certificate. The Trustee shall not be liable to any
Person for any registration of Transfer of a Residual Certificate that
is in fact not permitted by Section 5.02(b) and this Section 5.02(c) or
for making any payments due on such Certificate to the Holder thereof
or taking any other action with respect to such Holder under this
Agreement so long as the Transfer was registered after receipt of the
related Transfer Affidavit, Transferor Certificate and either the Rule
144A Letter or the Investment Letter. The Trustee shall be entitled but
not obligated to recover from any Holder of a Residual Certificate that
was in fact not a Permitted Transferee at the time it became a Holder
or, at such subsequent time as it became other than a Permitted
Transferee, all payments made on such Residual Certificate at and after
either such time. Any such payments so recovered by the Trustee shall
be paid and delivered by the Trustee to the last preceding Permitted
Transferee of such Certificate.
(v) The Depositor shall use its best efforts to make
available, upon receipt of written request from the Trustee, all
information necessary to compute any tax imposed under Section 860E(e)
of the Code as a result of a Transfer of an Ownership Interest in a
Residual Certificate to any Holder who is not a Permitted Transferee.
The restrictions on Transfers of a Residual Certificate in this Section
5.02(c) shall cease to apply (and the applicable portions of the legend on a
Residual Certificate may be deleted) with respect to Transfers occurring after
delivery to the Trustee of an Opinion of Counsel, which Opinion of Counsel shall
not be an expense of the Trust Fund, the Trustee, the Seller, the NIM Insurer or
the Master Servicer, to the effect that the elimination of such restrictions
will not cause the Trust Fund hereunder to fail to qualify as a REMIC at any
time that the Certificates are outstanding or result in the imposition of any
tax on the Trust Fund, a Certificateholder or any other Person. The Opinion of
Counsel shall be accompanied by written notification from each Rating Agency
that the removal of the restriction will not cause the Rating Agency to
downgrade its ratings of the Certificates. Each Person holding or acquiring any
Ownership Interest in a Residual Certificate hereby consents to any amendment of
this Agreement that, based on an Opinion of Counsel furnished to the Trustee, is
reasonably necessary (a) to ensure that the record ownership of, or any
beneficial interest in, a Residual Certificate is not transferred, directly or
indirectly, to a Person that is not a Permitted Transferee and (b) to provide
for a means to compel the Transfer of a Residual Certificate that is held by a
Person that is not a Permitted Transferee to a Holder that is a Permitted
Transferee.
EXHIBIT J
FORM OF TRANSFEROR CERTIFICATE
__________, 20__
IndyMac ABS, Inc.
000 Xxxxx Xxxx Xxxxxx
Xxxxxxxx, Xxxxxxxxxx 00000
Deutsche Bank National Trust Company
0000 Xxxx Xx. Xxxxxx Xxxxx
Xxxxx Xxx, Xxxxxxxxxx 00000-0000
Attention: : [___________]
Series INABS 2005-C
Re: IndyMac ABS, Inc. Home Equity Loan Asset-Backed
Trust, Series INABS 2005-C, Home Equity Mortgage Loan
Asset-Backed Certificates, Series INABS 2005-C, Class
___
Ladies and Gentlemen:
In connection with our disposition of the above Certificates we certify
that (a) we understand that the Certificates have not been registered under the
Securities Act of 1933, as amended (the "ACT"), and are being disposed by us in
a transaction that is exempt from the registration requirements of the Act, (b)
we have not offered or sold any Certificates to, or solicited offers to buy any
Certificates from, any person, or otherwise approached or negotiated with any
person with respect thereto, in a manner that would be deemed, or taken any
other action that would result in, a violation of Section 5 of the Act and (c)
to the extent we are disposing of a Residual Certificate, we have no knowledge
the Transferee is not a Permitted Transferee.
Very truly yours,
__________________________________
Print Name of Transferor
By: __________________________________
Authorized Officer
EXHIBIT K
FORM OF SWAP AGREEMENT
[BEAR XXXXXXX LOGO OMITTED]
BEAR XXXXXXX FINANCIAL PRODUCTS INC.
000 XXXXXXX XXXXXX
XXX XXXX, XXX XXXX 00000
000-000-0000
DATE: September 29, 2005
TO: Deutsche Bank National Trust Company, not
individually, but solely as Trustee on
behalf of the Supplemental Interest Trust
created under the Pooling and Servicing
Agreement, with respect to Home Equity
Mortgage Loan Asset-Backed Trust, Series
INABS 0000-X
XXXXXXXXX: Xxxxx Xxxxxxxxxxxxxx - XX00X0
TELEPHONE: 000-000-0000
FACSIMILE: 000-000-0000
FROM: Derivatives Documentation
TELEPHONE: 000-000-0000
FACSIMILE: 000-000-0000
SUBJECT: Fixed Income Derivatives Confirmation and Agreement
REFERENCE NUMBER: FXNEC7406
The purpose of this letter agreement ("Agreement") is to confirm the terms and
conditions of the Transaction entered into on the Trade Date specified below
(the "Transaction") between Bear Xxxxxxx Financial Products Inc. ("BSFP") and
Deutsche Bank National Trust Company, not individually, but solely as Trustee on
behalf of the Supplemental Interest Trust created under the Pooling and
Servicing Agreement, with respect to Home Equity Mortgage Loan Asset-Backed
Trust, Series INABS 2005-C ("Counterparty"). This Agreement, which evidences a
complete and binding agreement between you and us to enter into the Transaction
on the terms set forth below, constitutes a "Confirmation" as referred to in the
"ISDA Form Master Agreement" (as defined below), as well as a "Schedule" as
referred to in the ISDA Form Master Agreement.
1. This Agreement is subject to the 2000 ISDA Definitions (the "Definitions"),
as published by the International Swaps and Derivatives Association, Inc.
("ISDA"). You and we have agreed to enter into this Agreement in lieu of
negotiating a Schedule to the 1992 ISDA Master Agreement (Multicurrency--Cross
Border) form (the "ISDA Form Master Agreement") but, rather, an ISDA Form Master
Agreement shall be deemed to have been executed by you and us on the date we
entered into the Transaction. In the event of any inconsistency between the
provisions of this Agreement and the Definitions or the ISDA Form Master
Agreement, this Agreement shall prevail for purposes of the Transaction. Terms
capitalized and not otherwise defined herein, in the ISDA Form Master Agreement
or the Definitions shall have the meanings attributed to them in the Pooling and
Servicing Agreement dated as of September 1, 2005 among IndyMac ABS, Inc., as
Depositor, IndyMac Bank, F.S.B., as Seller and Master Servicer and Deutsche Bank
National Trust Company, as Trustee and Supplemental Interest Trust Administrator
(the "Pooling and Servicing Agreement"). Each reference to a "Section" or to a
"Section" "of this Agreement" will be construed as a reference to a Section of
the ISDA Form Master Agreement.
2. The terms of the particular Transaction to which this Confirmation relates
are as follows:
Notional Amount: With respect to any Calculation
Period, the Notional Amount set
forth for such Calculation Period in
Schedule I attached hereto.
Trade Date: September 9, 2005
Effective Date: Xxxxx 00, 0000
Xxxxxxxxxxx Date: August 25, 2009 provided,
however, for the purposes of
determining the Floating Amount to
be paid in respect of the final
Calculation Period, such date shall
be subject to adjustment in
accordance with the Business Day
Convention.
Fixed Amount:
Fixed Rate Payer: Counterparty
Fixed Rate Payer
Payment Date:The 25th calendar day of each
month during the Term of this
Transaction, commencing April 25,
2006, and ending on the Termination
Date, subject to adjustment in
accordance with the Business Day
Convention
Fixed Rate Payer
Period End Dates: The 25th calendar day of
each month during the Term of this
Transaction, commencing April 25,
2006, and ending on the Termination
Date, subject to No Adjustment.
Fixed Rate: 4.30000%
Fixed Amount: To be determined in accordance with
the following formula:
250 * Fixed Amount * Notional Amount
* Fixed Rate Day Count Fraction.
Fixed Rate Day
Count Fraction: 30/360
Floating Amounts:
Floating Rate Payer: BSFP
Floating Rate Payer
Payment Dates: The 25th calendar day of each
month during the Term of this
Transaction, commencing April 25,
2006 and ending on the Termination
Date, subject to adjustment in
accordance with the Modified
Following Business Day Convention.
Floating Rate Payer
Period End Dates: The 25th calendar day of
each month during the Term of this
Transaction, commencing April 25,
2006 and ending on the Termination
Date, subject to adjustment in
accordance with the Modified
Following Business Day Convention.
Floating Rate Option: USD-LIBOR-BBA
Floating Amount: To be determined in accordance with
the following formula:
250 * Floating Rate Option *
Notional Amount * Floating Rate Day
Count Fraction.
Designated Maturity: One month
Floating Rate Day
Count Fraction: Actual/360
Reset Dates: The first day of each Calculation
Period.
Compounding: Inapplicable
Business Days: New York and Los Angeles
3. Additional Provisions: Each party hereto is hereby advised
and acknowledges that the other
party has engaged in (or refrained
from engaging in) substantial
financial transactions and has taken
(or refrained from taking) other
material actions in reliance upon
the entry by the parties into the
Transaction being entered into on
the terms and conditions set forth
herein and in the Confirmation
relating to such Transaction, as
applicable. This paragraph shall be
deemed repeated on the trade date of
each Transaction.
4. Provisions Deemed Incorporated in a
Schedule to the ISDA Form Master
Agreement:
1) The parties agree that subparagraph (ii) of Section 2(c) of the ISDA Form
Master Agreement will apply to any Transaction.
2) Termination Provisions. Subject to the provisions of paragraph 13 below,
for purposes of the ISDA Form Master Agreement:
(a) "Specified Entity" is not applicable to BSFP or Counterparty for any
purpose.
(b) "Breach of Agreement" provision of Section 5(a)(ii) will not apply to BSFP
or Counterparty.
(c) "Credit Support Default" provisions of Section 5(a)(iii) will not apply to
Counterparty and will not apply to BSFP unless BSFP has obtained a
guarantee or posted collateral pursuant to paragraph 12 below.
(d) "Misrepresentation" provisions of Section 5(a)(iv) will not apply to BSFP
or Counterparty.
(e) "Specified Transaction" is not applicable to BSFP or Counterparty for any
purpose, and, accordingly, Section 5(a)(v) shall not apply to BSFP or
Counterparty.
(f) The "Cross Default" provisions of Section 5(a)(vi) will not apply to BSFP
or to Counterparty.
(g) With respect to the Counterparty, the "Bankruptcy" provision of Section
5(a)(vii)(2) will be deleted in its entirety.
(h) The "Merger Without Assumption" provisions of Section 5(a)(viii) will not
apply to Counterparty.
(i) The "Tax Event Upon Merger" provisions of Section 5(b)(iii) will not apply
to BSFP as Burdened Party.
(j) The "Credit Event Upon Merger" provisions of Section 5(b)(iv) will not
apply to BSFP or to Counterparty.
(k) The "Automatic Early Termination" provision of Section 6(a) will not apply
to BSFP or to Counterparty.
(l) Payments on Early Termination. For the purpose of Section 6(e) of the ISDA
Form Master Agreement:
(i) Market Quotation will apply.
(ii) The Second Method will apply.
(m) "Termination Currency" means United States Dollars.
3) Tax Representations.
Payer Representations. For the purpose of Section 3(e) of the ISDA Form
Master Agreement, BSFP and Counterparty make the following representations:
It is not required by any applicable law, as modified by the practice
of any relevant governmental revenue authority, of any Relevant
Jurisdiction to make any deduction or withholding for or on account of
any Tax from any payment (other than interest under Section 2(e),
6(d)(ii) or 6(e) of the ISDA Form Master Agreement) to be made by it
to the other party under this Agreement. In making this
representation, it may rely on (i) the accuracy of any representations
made by the other party pursuant to Section 3(f) of the ISDA Form
Master Agreement, (ii) the satisfaction of the agreement contained in
Section 4(a)(i) or 4(a)(iii) of the ISDA Form Master Agreement and the
accuracy and effectiveness of any document provided by the other party
pursuant to Section 4(a)(i) or 4(a)(iii) of the ISDA Form Master
Agreement and (iii) the satisfaction of the agreement of the other
party contained in Section 4(d) of the ISDA Form Master Agreement,
provided that it shall not be a breach of this representation where
reliance is placed on clause (ii) and the other party does not deliver
a form or document under Section 4(a)(iii) by reason of material
prejudice of its legal or commercial position.
Payee Representations. For the purpose of Section 3 (f) of the ISDA Form
Master Agreement, BSFP and Counterparty make the following representations:
(i) BSFP represents that it is a corporation organized under the laws
of the State of Delaware and its United States taxpayer
identification number is 00-0000000.
(ii) Counterparty represents that it is Trustee under the Pooling and
Servicing Agreement.
4) The ISDA Form Master Agreement is hereby amended as follows:
(a) The word "third" shall be replaced by the word "second" in the third
line of Section 5(a)(i) of the ISDA Form Master Agreement;
(b) The words "and the NIMS Insurer" shall be added after the words
"Defaulting Party" in the third line of Section 6(a) of the ISDA Form
Master Agreement.
5) Documents to be Delivered. For the purpose of Section 4(a)(i) and (ii) of
the ISDA Form Master Agreement, each party agrees to deliver the following
documents, as applicable:
(1) Tax forms, documents, or certificates to be delivered are: Form/Document/
Party required to deliverdocument Certificate Date by which to be delivered
BSFP and the Counterparty Any document required or Promptly after the earlier of (i) reasonable
reasonably requested to allow demand by either party or (ii) learning that
the other party to make such form or document is required
payments under this Agreement
without any deduction or
withholding for or on the
account of any Tax or with such
deduction or withholding at a
reduced rate
(2) Other documents to be delivered are:
Party required
to deliver Form/Document/ Date by which to Covered by Section 3(d)
document Certificate be delivered Representation
BSFP and Any documents required by Upon the execution and Yes
the Counterparty the receiving party to delivery of this Agreement
evidence the authority of and such Confirmation
the delivering party or its
Credit Support Provider, if
any, for it to execute and
deliver this Agreement, any
Confirmation, and any
Credit Support Documents to
which it is a party, and to
evidence the authority of
the delivering party or its
Credit Support Provider to
perform its obligations
under this Agreement, such
Confirmation and/or Credit
Support Document, as the
case may be
BSFP and the A certificate of an Upon the execution and Yes
Counterparty authorized officer of the delivery of this Agreement
party, as to the incumbency and such Confirmation
and authority of the
respective officers of the
party signing this Agreement,
any relevant Credit Support
Document, or any
Confirmation, as the case may
be
6) Miscellaneous. Miscellaneous
(a) Address for Notices: For the purposes of Section 12(a) of the ISDA Form
Master Agreement:
Address for notices or communications to BSFP:
Address: 000 Xxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000
Attention: DPC Manager
Facsimile: (000) 000-0000
with a copy to:
Address: Xxx Xxxxxxxxx Xxxxxx Xxxxx, Xxxxxxxx, Xxx Xxxx 00000
Attention: Derivative Operations - 7th Floor
Facsimile: (000) 000-0000
(For all purposes)
Address for notices or communications to the Counterparty:
Address: Deutsche Bank National Trust Company
0000 Xxxx Xx. Xxxxxx Xxxxx
Xxxxx Xxx, Xxxxxxxxxx 00000
Attention: Trust Administration - IN05S3
Facsimile: 000-000-0000
Phone: 000-000-0000
(For all purposes)
(b) Process Agent. For the purpose of Section 13(c):
BSFP appoints as its
Process Agent: Not Applicable
The Counterparty appoints as its
Process Agent: Not Applicable
(c) Offices. The provisions of Section 10(a) will not apply to this Agreement;
neither BSFP nor the Counterparty have any Offices other than as set forth
in the Notices Section and BSFP agrees that, for purposes of Section 6(b)
of the ISDA Form Master Agreement, it shall not in future have any Office
other than one in the United States.
(d) Multibranch Party. For the purpose of Section 10(c) of the ISDA Form Master
Agreement:
BSFP is not a Multibranch Party.
The Counterparty is not a Multibranch Party.
(e) Calculation Agent. The Calculation Agent is BSFP.
(f) Credit Support Document.
BSFP: Not applicable, except for any guarantee or contingent agreement
delivered pursuant to paragraph 12 below.
The Counterparty: Not Applicable
(g) Credit Support Provider.
BSFP: Not Applicable
The Counterparty: Not Applicable
(h) Governing Law. The parties to this Agreement hereby agree that the law of
the State of New York shall govern their rights and duties in whole without
regard to conflict of law provisions thereof other than New York General
Obligations Law Sections 5-1401 and 5-1402.
(i) Severability. If any term, provision, covenant, or condition of this
Agreement, or the application thereof to any party or circumstance, shall
be held to be invalid or unenforceable (in whole or in part) for any
reason, the remaining terms, provisions, covenants, and conditions hereof
shall continue in full force and effect as if this Agreement had been
executed with the invalid or unenforceable portion eliminated, so long as
this Agreement as so modified continues to express, without material
change, the original intentions of the parties as to the subject matter of
this Agreement and the deletion of such portion of this Agreement will not
substantially impair the respective benefits or expectations of the
parties.
The parties shall endeavor to engage in good faith negotiations to replace
any invalid or unenforceable term, provision, covenant or condition with a
valid or enforceable term, provision, covenant or condition, the economic
effect of which comes as close as possible to that of the invalid or
unenforceable term, provision, covenant or condition.
(j) Consent to Recording. Each party hereto consents to the monitoring or
recording, at any time and from time to time, by the other party of any and
all communications between officers or employees of the parties, waives any
further notice of such monitoring or recording, and agrees to notify its
officers and employees of such monitoring or recording.
(k) Waiver of Jury Trial. Each party waives any right it may have to a trial by
jury in respect of any Proceedings relating to this Agreement or any Credit
Support Document.
(l) Trustee Capacity. It is expressly understood and agreed by the parties
hereto that insofar as this Confirmation is executed by the Trustee (i)
this Confirmation is executed and delivered by Deutsche Bank National Trust
Company not in its individual capacity but solely as Trustee under the
Pooling and Servicing Agreement referred to in this Confirmation in the
exercise of the powers and authority conferred and invested in it
thereunder (ii) each of the representations, undertakings and agreements
herein made on behalf of the Supplemental Interest Trust created under the
Pooling and Servicing Agreement, with respect to Home Equity Mortgage Loan
Asset-Backed Trust, Series INABS 2005-C made and intended not as personal
representations, undertakings and agreements by Deutsche Bank National
Trust Company but is made and intended for the purposes of binding only the
Supplemental Interest Trust created under the Pooling and Servicing
Agreement, with respect to Home Equity Mortgage Loan Asset-Backed Trust,
Series INABS 2005-C, (iii) nothing herein contained shall be construed as
creating any liability on the part of Deutsche Bank National Trust Company,
individually or personally, to perform any covenant either expressed or
implied contained herein, all such liability, if any, being expressly
waived by the parties hereto and by any Person claiming by, through or
under the parties hereto, and (iv) under no circumstances shall Deutsche
Bank National Trust Company in its individual capacity be personally liable
for the payment of any indebtedness or expenses or be personally liable for
the breach or failure of any obligation, representation, warranty or
covenant made or undertaken under this Confirmation or any other related
documents.
(m) Proceedings. BSFP shall not institute against or cause any other person to
institute against, or join any other person in instituting against,
Counterparty or Deutsche Bank National Trust Company, not individually, but
solely as Trustee for the Supplemental Interest Trust created under the
Pooling and Servicing Agreement, with respect to Home Equity Mortgage Loan
Asset-Backed Trust, Series INABS 2005-C any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or other proceedings
under any federal or state bankruptcy or similar law for a period of one
year and one day (or, if longer, the applicable preference period)
following payment in full of the Certificates. This provision will survive
the termination of this Agreement.
(n) BSFP hereby agrees that, notwithstanding any provision of this agreement to
the contrary, Counterparty's obligations to pay any amounts owing under
this Agreement shall be subject to Section 4.02 of the Pooling and
Servicing Agreement and BSFP's right to receive payment of such amounts
shall be subject to Section 4.02 of the Pooling and Servicing Agreement.
This provision will survive the termination of this Agreement.
7) "Affiliate." BSFP and Counterparty shall be deemed to not have any
Affiliates for purposes of this Agreement, including for purposes of
Section 6(b)(ii). This provision will survive the termination of this
Agreement.
8) Section 3 of the ISDA Form Master Agreement is hereby amended by adding at
the end thereof the following subsection (g):
"(g) Relationship Between Parties.
Each party represents to the other party on each date when it
enters into a Transaction that:--
(1) Nonreliance. It is not relying on any statement or representation
of the other party regarding the Transaction (whether written or
oral), other than the representations expressly made in this
Agreement or the Confirmation in respect of that Transaction.
(2) Evaluation and Understanding.
(i) BSFP is acting for its own account and Deutsche Bank National
Trust Company is acting as Trustee under the Pooling and Servicing
Agreement and not for its own account. Each party has the capacity to
evaluate (internally or through independent professional advice) the
Transaction and has made its own decision to enter into the Transaction;
(ii) It understands the terms, conditions and risks of the Transaction
and is willing and able to accept those terms and conditions and to assume
those risks, financially and otherwise; and
(3) Purpose. It is an "eligible swap participant" as such term is
defined in Section 35.1(b)(2) of the regulations (17 C.F.R 35)
promulgated under, and an "eligible contract participant" as
defined in Section 1(a)(12) of, the Commodity Exchange Act, as
amended, and it is entering into the Transaction for the purposes
of managing its borrowings or investments, hedging its underlying
assets or liabilities or in connection with a line of business.
(4) STATUS OF PARTIES. The other party is not acting as an agent,
fiduciary or advisor for it in respect of the Transaction."
9) Set-off. Notwithstanding any provision of this Agreement or any other
existing or future agreement, each party irrevocably waives any and all
rights it may have to set off, net, recoup or otherwise withhold or suspend
or condition payment or performance of any obligation between it and the
other party hereunder against any obligation between it and the other party
under any other agreements. The provisions for Set-off set forth in Section
6(e) of the Agreement shall not apply for purposes of this Transaction.
10) Transfer, Amendment and Assignment. No transfer, amendment, waiver,
supplement, assignment or other modification of this Transaction shall be
permitted by either party unless each of Standard & Poor's Ratings Service,
a division of The XxXxxx-Xxxx Companies, Inc. ("S&P"), Xxxxx'x Investors
Service, Inc. ("Moody's") and Xxxxx Ratings ("Fitch"), has been provided
notice of the same and confirms in writing (including by facsimile
transmission) within five Business Days after such notice is given that it
will not downgrade, qualify, withdraw or otherwise modify its then-current
rating of the Home Equity Mortgage Loan Asset-Backed Certificates, Series
INABS 2005-C (the "Certificates").
11) Additional Termination Events. The following Additional Termination Events
will apply, in each case with respect Counterparty as the sole Affected
Party (unless otherwise provided below):
(i) BSFP fails to comply with the Rating Agency Downgrade provisions as
set forth in Section 12 below. For all purposes of this Agreement,
BSFP shall be the sole Affected Party with respect to the occurrence
of a Termination Event described in this Section 11(i).
(ii) Notice of the requisite amount of the NIMS Insurer's, or the Master
Servicer's intention to exercise its option to purchase the Mortgage
Loans pursuant to Section 9.01 of the Pooling and Servicing Agreement
is given by the Trustee pursuant to Section 9.02 of the Pooling and
Servicing Agreement.
(iii) If the Trustee is unable to pay its Class A Certificates or fails or
admits in writing its inability to pay its Class A Certificates as
they become due.
12) Rating Agency Downgrade. In the event that BSFP's long-term unsecured and
unsubordinated debt rating is or reduced below "AA-" by S&P or its
long-term unsecured and unsubordinated debt rating is reduced below "Aa3"
by Moody's (and together with S&P and Fitch, the "Swap Rating Agencies",
and such rating thresholds, "Approved Rating Thresholds"), then within 30
days after such rating withdrawal or downgrade, BSFP shall, subject to the
Rating Agency Condition, at its own expense, either (i) cause another
entity to replace BSFP as party to this Agreement that meets or exceeds the
Approved Rating Thresholds and that is approved by the NIMS Insurers (which
approval shall not be unreasonably withheld) on terms substantially similar
to this Agreement, (ii) obtain a guaranty of, or a contingent agreement of
another person with the Approved Rating Thresholds, to honor, BSFP's
obligations under this Agreement; provided that such other person is
approved by the NIMS Insurers, such approval not to be unreasonably
withheld, (iii) post collateral satisfactory to each Swap Rating Agency and
the NIMS Insurers which will be sufficient to restore the immediately prior
ratings of the Certificates and any note insured by the NIMS Insurers, or
(iv) establish any other arrangement satisfactory to the Swap Rating
Agencies and the NIMS Insurers, which will be sufficient to restore the
immediately prior ratings of the Certificates and any note insured by the
NIMS Insurers. In the event that BSFP's long-term unsecured and
unsubordinated debt rating is reduced below "BBB-" or withdrawn by S&P
then, within 10 Business Days after such rating downgrade or withdrawal,
BSFP shall, subject to the Rating Agency Condition and at its own expense,
either (i) seek another entity to replace BSFP as party to this Agreement
that meets or exceeds the Approved Rating Thresholds on terms substantially
similar to this Agreement or (ii) obtain a guaranty of, or a contingent
agreement of, another person with the Approved Rating Thresholds, to honor
BSFP's obligations under this Agreement. For purposes of this provision,
"Rating Agency Condition" means, with respect to any particular proposed
act or omission to act hereunder that the party acting or failing to act
must consult with each of the Swap Rating Agencies then providing a rating
of the Certificates and receive from each of the Swap Rating Agencies a
prior written confirmation that the proposed action or inaction would not
cause a downgrade or withdrawal of the then-current rating of the
Certificates.
13) Third Party Beneficiary. Each of BSFP and Counterparty hereby acknowledges
and agrees that each NIMS Insurer shall be express third party
beneficiaries of this Agreement, entitled to enforce the provisions hereof.
14) BSFP and the Trustee acknowledge that the NIMS Insurer may pay the Net Swap
Payment owed to BSFP under certain limited circumstances as set forth in
the Pooling and Servicing Agreement.
NEITHER THE BEAR XXXXXXX COMPANIES INC. NOR ANY SUBSIDIARY OR
AFFILIATE OF THE BEAR XXXXXXX COMPANIES INC. OTHER THAN BSFP IS AN
OBLIGOR OR A CREDIT SUPPORT PROVIDER ON THIS AGREEMENT.
5. Account Details and Settlement Information:
PAYMENTS TO BSFP:
Citibank, N.A., New York
ABA Number: 000-0000-00, for the account of
Bear, Xxxxxxx Securities Corp.
Account Number: 0925-3186, for further credit to
Bear Xxxxxxx Financial Products Inc.
Sub-account Number: 102-04654-1-3
Attention: Derivatives Department
PAYMENTS TO COUNTERPARTY:
Deutsche Bank Trust Company Americas
ABA # 000-000-000
Account #: 00000000
Account Name: NYLTD Funds Control/Stars West
Ref: IndyMac INABC 2005-C
This Agreement may be executed in several counterparts, each of which shall be
deemed an original but all of which together shall constitute one and the same
instrument.
Counterparty hereby agrees to check this Confirmation and to confirm that the
foregoing correctly sets forth the terms of the Transaction by signing in the
space provided below and returning to BSFP a facsimile of the fully-executed
Confirmation to 000-000-0000. For inquiries regarding U.S. Transactions, please
contact Xxxxx Xxxxxx by telephone at 000-000-0000. For all other inquiries
please contact Derivatives Documentation by telephone at 000-0-000-0000.
Originals will be provided for your execution upon your request.
We are very pleased to have executed this Transaction with you and we look
forward to completing other transactions with you in the near future.
Very truly yours,
BEAR XXXXXXX FINANCIAL PRODUCTS INC.
By:_________________________________
Name:
Title:
Counterparty, acting through its duly authorized signatory, hereby agrees to,
accepts and confirms the terms of the foregoing as of the Trade Date.
AGREED AND ACCEPTED:
By: Deutsche Bank National Trust Company, not individually, but solely as
Trustee on behalf of the Supplemental Interest Trust created under the Pooling
and Servicing Agreement, with respect to Home Equity Mortgage Loan Asset-Backed
Trust, Series INABS 2005-C
By: ________________________________
Name:
Title:
cc: Xxx Xxxx Xxxxxxxx
am
SCHEDULE I
(where for the purposes of (i) determining Floating Amounts, all such dates
subject to adjustment in accordance with the Modified Following Business Day
Convention and (ii) determining Fixed Amounts, all such dates subject to No
Adjustment.)
From and including To but excluding Notional Amount (USD)
------------------ ---------------- ---------------------
Effective Date 4/25/2006 2,548,356
4/25/2006 5/25/2006 2,475,492
5/25/2006 6/25/2006 2,394,504
6/25/2006 7/25/2006 2,305,788
7/25/2006 8/25/2006 2,210,912
8/25/2006 9/25/2006 2,111,028
9/25/2006 10/25/2006 2,013,776
10/25/2006 11/25/2006 1,921,048
11/25/2006 12/25/2006 1,832,648
12/25/2006 1/25/2007 1,748,368
1/25/2007 2/25/2007 1,668,020
2/25/2007 3/25/2007 1,591,412
3/25/2007 4/25/2007 1,518,376
4/25/2007 5/25/2007 1,448,712
5/25/2007 6/25/2007 1,382,128
6/25/2007 7/25/2007 1,317,860
7/25/2007 8/25/2007 1,211,576
8/25/2007 9/25/2007 1,102,868
9/25/2007 10/25/2007 1,005,248
10/25/2007 11/25/2007 917,596
11/25/2007 12/25/2007 839,096
12/25/2007 1/25/2008 788,824
1/25/2008 2/25/2008 747,720
2/25/2008 3/25/2008 708,904
3/25/2008 4/25/2008 672,232
4/25/2008 5/25/2008 637,560
5/25/2008 6/25/2008 604,768
6/25/2008 7/25/2008 573,752
7/25/2008 8/25/2008 544,412
8/25/2008 9/25/2008 234,336
9/25/2008 10/25/2008 225,172
10/25/2008 11/25/2008 216,380
11/25/2008 12/25/2008 207,948
12/25/2008 1/25/2009 199,856
1/25/2009 2/25/2009 192,092
2/25/2009 3/25/2009 170,856
3/25/2009 4/25/2009 164,540
4/25/2009 5/25/2009 158,464
5/25/2009 6/25/2009 152,612
6/25/2009 7/25/2009 146,984
7/25/2009 Termination Date 141,560
EXHIBIT L
RULE 144A LETTER
____________, 20__
IndyMac ABS, Inc.
000 Xxxxx Xxxx Xxxxxx
Xxxxxxxx, Xxxxxxxxxx 00000
Deutsche Bank National Trust Company
0000 Xxxx Xx. Xxxxxx Xxxxx
Xxxxx Xxx, Xxxxxxxxxx 00000-0000
Attention: : [___________]
Series INABS 2005-C
Re: Home Equity Mortgage Loan Asset-Backed Trust, Series
INABS 2005-C Home Equity Mortgage Loan Asset-Backed
Certificates, Series INABS 2005-C, CLASS [_]
Ladies and Gentlemen:
In connection with our acquisition of the above Certificates we certify
that (a) we understand that the Certificates are not being registered under the
Securities Act of 1933, as amended (the "ACT"), or any state securities laws and
are being transferred to us in a transaction that is exempt from the
registration requirements of the Act and any such laws, (b) we have such
knowledge and experience in financial and business matters that we are capable
of evaluating the merits and risks of investments in the Certificates, (c) we
have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Certificates and all matters relating
thereto or any additional information deemed necessary to our decision to
purchase the Certificates, (d) (i) we are not an employee benefit plan that is
subject to the Employee Retirement Income Security Act of 1974, as amended, or a
plan or arrangement that is subject to Section 4975 of the Internal Revenue Code
of 1986, as amended, nor are we acting on behalf of any such plan or arrangement
or using the assets of any such plan or arrangement to effect such acquisition,
(ii) we are purchasing a Certificate that is not a Class C or Class R
Certificate and has been the subject of an ERISA-Qualifying Underwriting and we
are an insurance company that is purchasing such Certificates with funds
contained in an "insurance company general account" (as such term is defined in
Section V(e) of Prohibited Transaction Class Exemption 95-60 ("PTCE 95-60")) and
that the purchase and holding of such Certificates satisfy the requirements for
exemptive relief under Sections I and III of PTCE 95-60, or (iii) in the case of
a Class M-11 Certificate which has been the subject of an ERISA-Qualifying
Underwriting, it has acquired and is holding such Certificate in reliance on the
Exemption, including that such Certificate must be rated, at the time of
purchase, not lower than "BBB-" (or its equivalent) by S&P, Fitch or Moody's and
such Certificate is so rated, or (e) we have not, nor has anyone acting on our
behalf offered, transferred, pledged, sold or otherwise disposed of the
Certificates, any interest in the Certificates or any other similar security to,
or solicited any offer to buy or accept a transfer, pledge or other disposition
of the Certificates, any interest in the Certificates or any other similar
security from, or otherwise approached or negotiated with respect to the
Certificates, any interest in the Certificates or any other similar security
with, any person in any manner, or made any general solicitation by means of
general advertising or in any other manner, or taken any other action, that
would constitute a distribution of the Certificates under the Act or that would
render the disposition of the Certificates a violation of Section 5 of the Act
or require registration pursuant thereto, nor will act, nor has authorized or
will authorize any person to act, in such manner with respect to the
Certificates, (f) to the extent that the Certificate transferred is a Class C
Certificate, we are a bankruptcy-remote entity and (g) we are a "qualified
institutional buyer" as that term is defined in Rule 144A under the Act and have
completed either of the forms of certification to that effect attached hereto as
Annex 1 or Annex 2. We are aware that the sale to us is being made in reliance
on Rule 144A. We are acquiring the Certificates for our own account or for
resale pursuant to Rule 144A and further, understand that such Certificates may
be resold, pledged or transferred only (i) to a person reasonably believed to be
a qualified institutional buyer that purchases for its own account or for the
account of a qualified institutional buyer to whom notice is given that the
resale, pledge or transfer is being made in reliance on Rule 144A, or (ii)
pursuant to another exemption from registration under the Act.
ANNEX 1 TO EXHIBIT L
QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
[For Transferees Other Than Registered Investment Companies]
The undersigned (the "BUYER") hereby certifies as follows to the
parties listed in the Rule 144A Transferee Certificate to which this
certification relates with respect to the Certificates described therein:
1. As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer of the
Buyer.
2. In connection with purchases by the Buyer, the Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933, as amended ("RULE 144A") because (i) the Buyer owned or invested on
a discretionary basis $____________(1) in securities (except for the excluded
securities referred to below) as of the end of the Buyer's most recent fiscal
year (such amount being calculated in accordance with Rule 144A and (ii) the
Buyer satisfies the criteria in the category marked below.
___ CORPORATION, ETC. The Buyer is a corporation (other than a bank, savings and
loan association or similar institution), Massachusetts or similar business
trust, partnership, or charitable organization described in Section 501(c)(3) of
the Internal Revenue Code of 1986, as amended.
___ BANK. The Buyer (a) is a national bank or banking institution organized
under the laws of any State, territory or the District of Columbia, the business
of which is substantially confined to banking and is supervised by the State or
territorial banking commission or similar official or is a foreign bank or
equivalent institution, and (b) has an audited net worth of at least $25,000,000
as demonstrated in its latest annual financial statements, a copy of which is
attached hereto.
___ SAVINGS AND LOAN. The Buyer (a) is a savings and loan association, building
and loan association, cooperative bank, homestead association or similar
institution, that is supervised and examined by a State or Federal authority
having supervision over any such institutions or is a foreign savings and loan
association or equivalent institution and (b) has an audited net worth of at
least $25,000,000 as demonstrated in its latest annual financial statements, a
copy of which is attached hereto.
___ BROKER-DEALER. The Buyer is a dealer registered pursuant to Section 15 of
the Securities Exchange Act of 1934, as amended.
___ INSURANCE COMPANY. The Buyer is an insurance company whose primary and
predominant business activity is the writing of insurance or the reinsuring of
risks underwritten by insurance companies and that is subject to supervision by
the insurance commissioner or a similar official or agency of a State, territory
or the District of Columbia.
___ STATE OR LOCAL PLAN. The Buyer is a plan established and maintained by a
State, its political subdivisions, or any agency or instrumentality of the State
or its political subdivisions, for the benefit of its employees.
___ ERISA PLAN. The Buyer is an employee benefit plan within the meaning of
Title I of the Employee Retirement Income Security Act of 1974, as amended.
_______________________________________
(1) Buyer must own or invest on a discretionary basis at least $100,000,000 in
securities unless Buyer is a dealer, and, in that case, Buyer must own or invest
on a discretionary basis at least $10,000,000 in securities.
___ INVESTMENT ADVISOR. The Buyer is an investment advisor registered under the
Investment Advisors Act of 1940, as amended.
___ SMALL BUSINESS INVESTMENT COMPANY. Buyer is a small business investment
company licensed by the U.S. Small Business Administration under Section 301(c)
or (d) of the Small Business Investment Act of 1958.
___ BUSINESS DEVELOPMENT COMPANY. Buyer is a business development company as
defined in Section 202(a)(22) of the Investment Advisors Act of 1940, as
amended.
3. The term "SECURITIES" as used herein does not include (i) securities
of issuers that are affiliated with the Buyer, (ii) securities that are part of
an unsold allotment to or subscription by the Buyer, if the Buyer is a dealer,
(iii) securities issued or guaranteed by the U.S. or any instrumentality
thereof, (iv) bank deposit notes and certificates of deposit, (v) loan
participations, (vi) repurchase agreements, (vii) securities owned but subject
to a repurchase agreement and (viii) currency, interest rate and commodity
swaps.
4. For purposes of determining the aggregate amount of securities owned
or invested on a discretionary basis by the Buyer, the Buyer used the cost of
such securities to the Buyer and did not include any of the securities referred
to in the preceding paragraph, except (i) where the Buyer reports its securities
holdings in its financial statements on the basis of their market value and (ii)
no current information with respect to the cost of those securities has been
published. If clause (ii) in the preceding sentence applies, the securities may
be valued at market. Further, in determining such aggregate amount, the Buyer
may have included securities owned by subsidiaries of the Buyer, but only if
such subsidiaries are consolidated with the Buyer in its financial statements
prepared in accordance with generally accepted accounting principles and if the
investments of such subsidiaries are managed under the Buyer's direction.
However, such securities were not included if the Buyer is a majority-owned,
consolidated subsidiary of another enterprise and the Buyer is not itself a
reporting company under the Securities Exchange Act of 1934, as amended.
5. The Buyer acknowledges that it is familiar with Rule 144A and
understands that the seller to it and other parties related to the Certificates
are relying and will continue to rely on the statements made herein because one
or more sales to the Buyer may be in reliance on Rule 144A.
6. Until the date of purchase of the Rule 144A Securities, the Buyer
will notify each of the parties to which this certification is made of any
changes in the information and conclusions herein. Until such notice is given,
the Buyer's purchase of the Certificates will constitute a reaffirmation of this
certification as of the date of such purchase. In addition, if the Buyer is a
bank or savings and loan is provided above, the Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after they
become available.
______________________________________
Print Name of Transferee
By: ______________________________________
Name:
Title:
Date: ____________________________________
ANNEX 2 TO EXHIBIT L
QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
[For Transferees that are Registered Investment Companies]
The undersigned (the "BUYER") hereby certifies as follows to the
parties listed in the Rule 144A Transferee Certificate to which this
certification relates with respect to the Certificates described therein:
1. As indicated below, the undersigned is the President, Chief
Financial Officer or Senior Vice President of the Buyer or, if the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933, as amended ("RULE 144A") because Buyer is part of a
Family of Investment Companies, is such an officer of the Adviser.
2. In connection with purchases by Buyer, the Buyer is a "qualified
institutional buyer" as defined in SEC Rule 144A because (i) the Buyer is an
investment company registered under the Investment Company Act of 1940, as
amended and (ii) as marked below, the Buyer alone, or the Buyer's Family of
Investment Companies, owned at least $100,000,000 in securities (other than the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year. For purposes of determining the amount of securities owned by the
Buyer or the Buyer's Family of Investment Companies, the cost of such securities
was used, except (i) where the Buyer or the Buyer's Family of Investment
Companies reports its securities holdings in its financial statements on the
basis of their market value and (ii) no current information with respect to the
cost of those securities has been published. If clause (ii) in the preceding
sentence applies, the securities may be valued at market.
___ The Buyer owned $____________ in securities (other than the excluded
securities referred to below) as of the end of the Buyer's most recent fiscal
year (such amount being calculated in accordance with Rule 144A).
___ The Buyer is part of a Family of Investment Companies that owned in the
aggregate $________ in securities (other than the excluded securities referred
to below) as of the end of the Buyer's most recent fiscal year (such amount
being calculated in accordance with Rule 144A).
3. The term "FAMILY OF INVESTMENT COMPANIES" as used herein means two
or more registered investment companies (or series thereof) that have the same
investment adviser or investment advisers that are affiliated (by virtue of
being majority owned subsidiaries of the same parent or because one investment
adviser is a majority owned subsidiary of the other).
4. The term "SECURITIES" as used herein does not include (i) securities
of issuers that are affiliated with the Buyer or are part of the Buyer's Family
of Investment Companies, (ii) securities issued or guaranteed by the U.S. or any
instrumentality thereof, (iii) bank deposit notes and certificates of deposit,
(iv) loan participations, (v) repurchase agreements, (vi) securities owned but
subject to a repurchase agreement and (vii) currency, interest rate and
commodity swaps.
5. The Buyer is familiar with Rule 144A and understands that the
parties listed in the Rule 144A Transferee Certificate to which this
certification relates are relying and will continue to rely on the statements
made herein because one or more sales to the Buyer will be in reliance on Rule
144A. In addition, the Buyer will only purchase for the Buyer's own account.
6. Until the date of purchase of the Certificates, the undersigned will
notify the parties listed in the Rule 144A Transferee Certificate to which this
certification relates of any changes in the information and conclusions herein.
Until such notice is given, the Buyer's purchase of the Certificates will
constitute a reaffirmation of this certification by the undersigned as of the
date of such purchase.
________________________________________
Print Name of Buyer or Advisor
By: _______________________________________
Name:
Title:
IF AN ADVISER:
________________________________________
Print Name of Buyer
Date:______________________________________
EXHIBIT M
FORM OF REQUEST FOR RELEASE
(for Trustee)
IndyMac ABS, Inc.,
Home Equity Mortgage Loan Asset-Backed Trust, Series INABS 2005-C
Home Equity Mortgage Loan Asset-Backed Certificates,
Series INABS 2005-C
LOAN INFORMATION
Name of Mortgagor
---------------------------------------
Servicer
Loan No.:
---------------------------------------
TRUSTEE
Name:
---------------------------------------
Address:
---------------------------------------
---------------------------------------
---------------------------------------
Trustee
Mortgage File No.:
---------------------------------------
The undersigned Master Servicer hereby acknowledges that it has
received from Deutsche Bank National Trust Company, as Trustee for the Holders
of Home Equity Mortgage Loan Asset-Backed Certificates, of the above-referenced
Series, the documents referred to below (the "DOCUMENTS"). All capitalized terms
not otherwise defined in this Request for Release shall have the meanings given
them in the Pooling and Servicing Agreement (the "POOLING AND SERVICING
AGREEMENT") relating to the above-referenced Series among the Trustee, IndyMac
Bank, F.S.B., as Seller and Master Servicer and IndyMac ABS, Inc., as Depositor.
(__) Mortgage Note dated ____________, ____, in the original principal sum
of $__________, made by __________________ payable to, or endorsed to
the order of, the Trustee.
(__) Mortgage recorded on ________________ as instrument no. __________ in
the County Recorder's Office of the County of ____________, State of
___________ in book/reel/docket __________of official records at
page/image
-----------.
(__) Deed of Trust recorded on ____________ as instrument no. ____________
in the County Recorder's Office of the County of ___________, State of
__________ in book/reel/docket _____________ of official records at
page/image ___________.
(__) Assignment of Mortgage or Deed of Trust to the Trustee, recorded on
____________, ____, as instrument no. __________ in the County
Recorder's Office of the County of ________, State of _________ in
book/reel/docket _________ of official records at page/image
-------------.
(__) Other documents, including any amendments, assignments or other
assumptions of the Mortgage Note or Mortgage.
(--)
--------------------------------------------------------------
(--)
--------------------------------------------------------------
(--)
--------------------------------------------------------------
(--)
--------------------------------------------------------------
The undersigned Master Servicer hereby acknowledges and agrees as
follows:
(1) The Master Servicer shall hold and retain possession of
the Documents in trust for the benefit of the Trustee, solely for the
purposes provided in the Agreement.
(2) The Master Servicer shall not cause or knowingly permit
the Documents to become subject to, or encumbered by, any claim, liens,
security interest, charges, writs of attachment or other impositions
nor shall the Master Servicer assert or seek to assert any claims or
rights of setoff to or against the Documents or any proceeds thereof.
(3) The Master Servicer shall return each and every Document
previously requested from the Mortgage File to the Trustee when the
need therefor no longer exists, unless the Mortgage Loan relating to
the Documents has been liquidated and the proceeds thereof have been
remitted to the Certificate Account and except as expressly provided in
the Agreement.
(4) The Documents and any proceeds thereof, including any
proceeds of proceeds, coming into the possession or control of the
Master Servicer shall at all times be earmarked for the account of the
Trustee, and the Master Servicer shall keep the Documents and any
proceeds separate and distinct from all other property in the Master
Servicer's possession, custody or control.
INDYMAC BANK, F.S.B.
By:_________________________________
Its:________________________________
Date: ________________
EXHIBIT N
FORM OF REQUEST FOR RELEASE OF DOCUMENTS
To: Deutsche Bank National Trust Company, Attn: [____________]
Re: The Pooling & Servicing Agreement dated as of September 1, 2005 among
IndyMac Bank, F.S.B., as Seller and Master Servicer, IndyMac ABS, Inc.,
as Depositor, and Deutsche Bank National Trust Company as Trustee
Ladies and Gentlemen:
In connection with the administration of the Mortgage Loans held by you
as Trustee for IndyMac ABS, Inc., we request the release of the Mortgage Loan
File for the Mortgage Loans described below, for the reason indicated.
FT Account #: Pool #:
MORTGAGOR'S NAME, ADDRESS AND ZIP CODE:
MORTGAGE LOAN NUMBER:
REASON FOR REQUESTING DOCUMENTS (check one)
_______1. Mortgage Loan paid in full (IndyMac hereby certifies that all amounts
have been received.)
_______2. Mortgage Loan Liquidated (IndyMac hereby certifies that all proceeds
of foreclosure, insurance, or other liquidation have been finally received.)
_______3. Mortgage Loan in Foreclosure.
_______4. Other (explain): ____________________________________
If item 1 or 2 above is checked, and if all or part of the Mortgage
File was previously released to us, please release to us our previous receipt on
file with you, as well as an additional documents in your possession relating to
the above-specified Mortgage Loan. If item 3 or 4 is checked, upon return of all
of the above documents to you as Trustee, please acknowledge your receipt by
signing in the space indicated below, and returning this form.
INDYMAC BANK, F.S.B.
000 Xxxxx Xxxx Xxx.
Xxxxxxxx, Xxxxxxxxxx 00000
By:____________________________
Name:
Title:
Date:__________________________
TRUSTEE CONSENT TO RELEASE AND
ACKNOWLEDGMENT OF RECEIPT
By:____________________________
Name:
Title:
Date:__________________________
EXHIBIT O
FORM OF TRUSTEE CERTIFICATION
To: IndyMac ABS, Inc.
IndyMac Bank, F.S.B.
Re: The Pooling & Servicing Agreement dated as of September 1, 2005 among
IndyMac Bank, F.S.B., as Seller and Master Servicer, IndyMac ABS, Inc.,
as Depositor, and Deutsche Bank National Trust Company as Trustee
Ladies and Gentlemen:
In connection with the delivery of the Required Certifications on
behalf of the Trust Fund, we certify that, based on our knowledge, the
information contained in the Monthly Statements, taken as a whole, does not
contain an untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in the light of the circumstances under
which they were made, not misleading as of the last day of the period covered by
any Required Certification.
DEUTSCHE BANK NATIONAL TRUST COMPANY
By:_________________________________
Name:_______________________________
Title:______________________________
Date:_______________________________
EXHIBIT P
FORM OF ADDITION NOTICE
__________, 2005
Deutsche Bank National Trust Company
0000 Xxxx Xx. Xxxxxx Xxxxx
Xxxxx Xxx, Xxxxxxxxxx 00000-0000
[S&P]
[Xxxxx'x]
[Fitch]
Re: Pooling and Servicing Agreement, dated as of September 1, 2005, among
IndyMac ABS, Inc., IndyMac Bank, F.S.B. and Deutsche Bank National
Trust Company, relating to IndyMac ABS, Inc., Home Equity Mortgage Loan
Asset-backed Certificates, Series Inabs 2005-C
Ladies and Gentlemen:
Pursuant to Section 2.07 of the referenced Pooling and Servicing
Agreement, IndyMac ABS, Inc. has designated Subsequent Mortgage Loans to be sold
to the Trust Fund on __________, 2005 with an aggregate principal balance of
$__________ as of __________, 2005. Capitalized terms not otherwise defined
herein have the meaning set forth in the Pooling and Servicing Agreement.
Please acknowledge your receipt of this notice by countersigning the
enclosed copy in the space indicated below and returning it to the attention of
the undersigned.
Very truly yours,
INDYMAC ABS, INC.
By:____________________________
Name:
Title:
Acknowledged and Agreed:
DEUTSCHE BANK NATIONAL TRUST
COMPANY, as Trustee
By:___________________________________
Name:
Title:
By:___________________________________
Name:
Title:
EXHIBIT Q
FORM OF SUBSEQUENT TRANSFER INSTRUMENT
Pursuant to this Subsequent Transfer Instrument, dated _________, 2005
(the "INSTRUMENT"), among IndyMac ABS, Inc. (the "DEPOSITOR"), IndyMac Bank,
F.S.B. (the "SELLER") and Deutsche Bank National Trust Company (the "TRUSTEE"),
and pursuant to the Pooling and Servicing Agreement, dated as of September 1,
2005 (the "POOLING AND SERVICING AGREEMENT"), among the Depositor as depositor,
the Seller as master servicer (in such capacity, the "MASTER SERVICER") and the
Trustee as trustee of the IndyMac ABS, Inc., Home Equity Mortgage Loan
Asset-Backed Certificates, Series INABS 2005-C, the Seller and Depositor agree
to the sale by the Seller and the purchase by the Depositor, and the Depositor
and Trustee agree to the sale by the Depositor and the purchase by the Trustee,
on behalf of the Trust Fund, of the Mortgage Loans listed on the attached
Schedule of Subsequent Mortgage Loans (the "SUBSEQUENT MORTGAGE LOANS").
Capitalized terms used but not otherwise defined herein shall have the
meanings set forth in the Pooling and Servicing Agreement.
Section 1. CONVEYANCE OF SUBSEQUENT MORTGAGE LOANS.
(a) The Seller does hereby sell, transfer, assign, set over and
convey to the Depositor, without recourse, and the Depositor does hereby sell,
transfer, assign, set over and convey to the Trustee on behalf of the Trust
Fund, without recourse, all of its right, title and interest in and to the
Subsequent Mortgage Loans, including all amounts due on the Subsequent Mortgage
Loans after the related Subsequent Cut-off Date, and all items with respect to
the Subsequent Mortgage Loans to be delivered pursuant to Section 2.01 of the
Pooling and Servicing Agreement; provided, however, that the Seller reserves and
retains all right, title and interest in and to amounts due on the Subsequent
Mortgage Loans on or prior to the related Subsequent Cut-off Date. The Seller
and the Depositor, contemporaneously with the delivery of this Instrument, have
delivered or caused to be delivered to the Depositor and the Trustee,
respectively, each applicable item set forth in Section 2.01 of the Pooling and
Servicing Agreement. The transfer to the Depositor by the Seller of the
Subsequent Mortgage Loans identified on the attached Schedule of Subsequent
Mortgage Loans shall be absolute and is intended by the Seller to constitute and
to be treated as a sale by the Seller to the Depositor. The transfer to the
Trustee by the Depositor of the Subsequent Mortgage Loans identified on the
attached Schedule of Subsequent Mortgage Loans shall be absolute and is intended
by the Depositor, the Master Servicer, the Trustee and the Certificateholders to
constitute and to be treated as a sale by the Depositor to the Trust Fund.
(b) Reserved.
(c) Additional terms of the sale are set forth on Attachment A
hereto.
Section 2. REPRESENTATIONS AND WARRANTIES; CONDITIONS PRECEDENT.
(a) Each of the Seller and the Depositor hereby confirms that each
of the applicable conditions precedent and applicable representations and
warranties set forth in Section 2.07 of the Pooling and Servicing Agreement are
satisfied as of the date hereof.
(b) All terms and conditions of the Pooling and Servicing
Agreement are hereby ratified and confirmed; provided, however, that in the
event of any conflict, the provisions of this Instrument shall control over the
conflicting provisions of the Pooling and Servicing Agreement.
Section 3. RECORDATION OF INSTRUMENT.
To the extent permitted by applicable law, this Instrument, or a
memorandum thereof if permitted under applicable law, is subject to recordation
in all appropriate public offices for real property records in all of the
counties or other comparable jurisdictions in which any or all of the properties
subject to the Mortgages are situated, and in any other appropriate public
recording office or elsewhere, such recordation to be effected by the Master
Servicer at the Certificateholders' expense on direction of the related
Certificateholders, but only when accompanied by an Opinion of Counsel to the
effect that such recordation materially and beneficially affects the interests
of the Certificateholders or is necessary for the administration or servicing of
the Mortgage Loans.
Section 4. GOVERNING LAW.
This Instrument shall be construed in accordance with the laws of the
State of New York and the obligations, rights and remedies of the parties
hereunder shall be determined in accordance with such laws, without giving
effect to principles of conflicts of law.
Section 5. COUNTERPARTS.
This Instrument may be executed in one or more counterparts and by the
different parties hereto on separate counterparts, each of which, when so
executed, shall be deemed to be an original; such counterparts, together, shall
constitute one and the same instrument.
Section 6. SUCCESSORS AND ASSIGNS.
This Instrument shall inure to the benefit of and be binding upon the
Seller, the Depositor, the Trustee and their respective successors and assigns.
INDYMAC ABS, INC.,
as Depositor
By:____________________________
Name:
Title:
INDYMAC BANK, F.S.B.,
as Seller
By:____________________________
Name:
Title:
DEUTSCHE BANK NATIONAL TRUST
COMPANY,
as Trustee
By:____________________________
Name:
Title:
By:____________________________
Name:
Title:
ATTACHMENTS
A. Additional terms of sale.
B. Schedule of Subsequent Mortgage Loans.
ATTACHMENT A
ADDITIONAL TERMS OF SALE
(i) General
(a) Subsequent Cut-off Date: __________, 2005
(b) Subsequent Transfer Date: __________, 2005
(c) Aggregate Principal Balance of the Subsequent
Mortgage Loans as of the Subsequent Cut-off Date: $__________
(d) Purchase Price: [100.00]%
(ii) The obligation of the Trust Fund to purchase a Subsequent
Mortgage Loan on any Subsequent Transfer Date is subject to the satisfaction of
the conditions set forth in the immediately preceding paragraph and the accuracy
of the following representations and warranties with respect to each such
Subsequent Mortgage Loan determined as of the applicable Subsequent Cut-off
Date: (i) such Subsequent Mortgage Loan may not be 30 or more days delinquent as
of the applicable Subsequent Cut-off Date; provided, however, that such
Subsequent Mortgage Loans may have a first payment date occurring on or after
the applicable Subsequent Cut-off Date and, therefore, such Subsequent Mortgage
Loan could not have been delinquent as of such Subsequent Cut-off Date; (ii) the
remaining term to maturity of such Subsequent Mortgage Loan will not be less
than 175 months and will not exceed 360 months from its first payment date;
(iii) the Subsequent Mortgage Loan may not provide for negative amortization;
(iv) the Subsequent Mortgage Loan will not have a Loan-to-Value Ratio greater
than 100.00%; (v) such Subsequent Mortgage Loans will have, as of the related
Subsequent Cut-off Date, a weighted average age since origination not in excess
of two months; (vi) such Subsequent Mortgage Loan will not have a Mortgage Rate
less than 4.750% or greater than 12.500%; (vii) such Subsequent Mortgage Loan
will have been serviced by the Master Servicer since origination or purchase by
the Seller in accordance with its standard servicing practices; (viii) such
Subsequent Mortgage Loan will have a first payment date occurring on or before
December 1, 2004; (ix) such Subsequent Mortgage Loan will have a principal
balance no greater than $740,000; and (x) such Subsequent Mortgage Loan will
have been underwritten in accordance with the criteria set forth under
"--Underwriting Standards of the Seller" in the Prospectus Supplement.
(iii) Following the purchase of any Subsequent Mortgage Loan by the
Trust Fund to be included in Loan Group I, the Mortgage Loans in Loan Group I
(including the related Subsequent Mortgage Loans) will as of the related
Subsequent Cut-off Date: (i) have an original term to stated maturity of not
more than 360 months from the first payment date thereon; (ii) have a Mortgage
Rate of not less than 4.750% and not more than 12.250%; (iii) have a weighted
average Loan-to-Value Ratio of approximately 78.150%; (iv) have no Mortgage Loan
with a principal balance in excess of $552,250; (v) will consist of Mortgage
Loans with Prepayment Charges representing no less than approximately 78.150% of
the Mortgage Loans in Loan Group I; (vi) with respect to the adjustable-rate
Mortgage Loans in Loan Group I, have a weighted average Margin of approximately
5.649%; and (vii) have a weighted average FICO Score of approximately 607; in
each case measured by aggregate principal balance of the Mortgage Loans in Loan
Group I as of the Cut-off Date or Subsequent Cut-off Date applicable to each
Mortgage Loan. For purposes of the calculations described in this paragraph,
percentages of the Mortgage Loans in Loan Group I will be based on the principal
balance of the Closing Date Mortgage Loans in Loan Group I as of the Cut-off
Date and the principal balance of the Subsequent Mortgage Loans included in Loan
Group I as of the related Subsequent Cut-off Date.
(iv) Following the purchase of any Subsequent Mortgage Loan by the
Trust Fund to be included in Loan Group II, the Mortgage Loans in Loan Group II
(including the related Subsequent Mortgage Loans) will as of the related
Subsequent Cut-off Date: (i) have an original term to stated maturity of not
more than 360 months from the first payment date thereon; (ii) have a Mortgage
Rate of not less than 4.750% and not more than 12.500%; (iii) have a weighted
average Loan-to-Value Ratio of approximately 78.370%; (iv) have no Mortgage Loan
with a principal balance in excess of $900,000; (v) will consist of Mortgage
Loans with Prepayment Charges representing no less than approximately 72.810% of
the Mortgage Loans in Loan Group II; (vi) with respect to the adjustable-rate
Mortgage Loans in Loan Group II, have a weighted average Margin of approximately
5.460%; and (vii) have a weighted average FICO Score of approximately 624; in
each case measured by aggregate principal balance of the Mortgage Loans in Loan
Group II as of the Cut-off Date or Subsequent Cut-off Date applicable to each
Mortgage Loan. For purposes of the calculations described in this paragraph,
percentages of the Mortgage Loans in Loan Group II will be based on the
principal balance of the Closing Date Mortgage Loans in Loan Group II as of the
Cut-off Date and the principal balance of the Subsequent Mortgage Loans in Loan
Group II as of the related Subsequent Cut-off Date.
ATTACHMENT B
SCHEDULE OF SUBSEQUENT MORTGAGE LOANS
Available Upon Request
