EXHIBIT 4.5.2
Dated 28 January 2004
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GRANITE FINANCE FUNDING LIMITED
as Funding
THE BANK OF NEW YORK
as Security Trustee
GRANITE MORTGAGES 04-1 PLC
as Current Issuer
NORTHERN ROCK PLC
as Current Issuer Start-up Loan Provider
- and -
OTHERS
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ISSUER DEED OF ACCESSION
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SIDLEY XXXXXX XXXXX & XXXX
0 XXXXXXXXXXXX XXXXXX
XXXXXX XX0X 0XX
TELEPHONE 000 0000 0000
FACSIMILE 020 7626 7937
CONTENTS
1. Interpretation.........................................................3
2. Representations and Warranties.........................................3
3. Accession..............................................................4
4. Funding Security.......................................................5
5. Title Guarantee........................................................7
6. Application............................................................7
7. Scope of the Funding Deed of Charge....................................7
8. Notices and Acknowledgements...........................................7
9. Amendment to the Funding Priority of Payments..........................8
10. Notices and Demands....................................................8
11. Non Petition Covenant..................................................9
12. Third Party Rights....................................................10
13. Execution in Counterparts.............................................10
14. Governing Law and Jurisdiction; Appropriate Forum.....................10
15. Process Agents........................................................10
SCHEDULE I Utilisation of Issuer Reserves..................................16
APPENDIX 1 Amended and Restated Funding Priority of Payments................17
THIS DEED OF ACCESSION is made on 28 January 2004
BETWEEN:
(1) GRANITE FINANCE FUNDING LIMITED (registered number 79308), a private
limited liability company incorporated under the laws of Jersey whose
London branch is at 0 Xxxxx Xxxx Xxxxx, Xxxxxx XX0X 0XX;
(2) THE BANK OF NEW YORK, a New York banking corporation whose London branch
address is at 00xx Xxxxx, Xxx Xxxxxx Xxxxxx, Xxxxxx X00 0XX Xxxxxx
Xxxxxxx, in its capacity as Security Trustee;
(3) THE BANK OF NEW YORK, a New York banking corporation whose London branch
address is at 00xx Xxxxx, Xxx Xxxxxx Xxxxxx, Xxxxxx X00 0XX Xxxxxx
Xxxxxxx, (1) in its separate capacities as Note Trustee in respect of
the Previous Issuers and (2) in its capacity as note trustee under the
Current Issuer Trust Deed and the Current Issuer Deed of Charge (the
"Current Issuer Note Trustee", which expression shall include such
person and all other persons for the time being acting as the note
trustee or note trustees pursuant to those deeds);
(4) GRANITE MORTGAGES 01-1 PLC (registered number 4129652), a public limited
company incorporated under the laws of England and Wales whose
registered office is at Xxxxx Xxxxx, 000 Xxxx Xxxxxx, Xxxxxx XX0X 0XX;
(5) GRANITE MORTGAGES 01-2 PLC (registered number 4270015), a public limited
company incorporated under the laws of England and Wales whose
registered office is at Xxxxx Xxxxx, 000 Xxxx Xxxxxx, Xxxxxx XX0X 0XX;
(6) GRANITE MORTGAGES 02-1 PLC (registered number 4340767), a public limited
company incorporated under the laws of England and Wales whose
registered office is at Xxxxx Xxxxx, 000 Xxxx Xxxxxx, Xxxxxx XX0X 0XX;
(7) GRANITE MORTGAGES 02-2 PLC (registered number 4482804), a public limited
company incorporated under the laws of England and Wales whose
registered office is at Xxxxx Xxxxx, 000 Xxxx Xxxxxx, Xxxxxx XX0X 0XX;
(8) GRANITE MORTGAGES 03-1 PLC (registered number 4598035), a public limited
company incorporated under the laws of England and Wales whose
registered office is at Xxxxx Xxxxx, 000 Xxxx Xxxxxx, Xxxxxx XX0X 0XX;
(9) GRANITE MORTGAGES 03-2 PLC (registered number 4684567), a public limited
company incorporated under the laws of England and Wales whose
registered office is at Xxxxx Xxxxx, 000 Xxxx Xxxxxx, Xxxxxx XX0X 0XX;
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(10) GRANITE MORTGAGES 03-3 PLC (registered number 4823268), a public limited
company incorporated under the laws of England and Wales whose
registered office is at Xxxxx Xxxxx, 000 Xxxx Xxxxxx, Xxxxxx XX0X 0XX;
(11) GRANITE FINANCE TRUSTEES LIMITED (registered number 79309), a private
limited liability company incorporated under the laws of Jersey whose
registered office is at 00 Xxxxxxxxx Xxxxxx, Xx. Xxxxxx, Xxxxxx XX0 0XX
Channel Islands in its capacity as Mortgages Trustee;
(12) NORTHERN ROCK PLC (registered number 03273685), a public limited company
incorporated under the laws of England and Wales whose registered office
is at Xxxxxxxx Xxxx Xxxxx, Xxxxxxxx, Xxxxxxxxx xxxx Xxxx XX0 0XX in its
capacity as Cash Manager;
(13) LLOYDS TSB BANK PLC, acting through its office at City Office, Xxxxxx
Drive, Xxxxxxxxxx Xxxxxxxx Xxxx, Xxxx XX0 0XX, in its capacity as
Account Bank and acting through its office at 00 Xxxxxxxx Xxxxxx, Xxxxxx
XX0X 0XX in its capacity as Funding GIC Provider;
(14) MOURANT & CO. CAPITAL (SPV) LIMITED, a private limited company
incorporated under the laws of England and Wales whose registered office
is 4 Xxxxx Xxxx Xxxxx, Xxxxxx XX0X 0XX, in its capacity as Corporate
Services Provider;
(15) NORTHERN ROCK PLC (registered number 03273685), acting through its
office at Northern Xxxx Xxxxx, Xxxxxxxx, Xxxxxxxxx xxxx Xxxx XX0 0XX, in
its capacity (1) as the Previous Start-up Loan Provider, and (2) as
Current Issuer Start-up Loan Provider;
(16) GRANITE MORTGAGES 04-1 PLC (registered number 4959572), a public limited
company incorporated under the laws of England and Wales whose
registered office is at Xxxxx Xxxxx, 000 Xxxx Xxxxxx, Xxxxxx XX0X 0XX as
Current Issuer.
NOW THIS DEED OF ACCESSION WITNESSES AS FOLLOWS
WHEREAS:
(A) Pursuant to the terms of the Current Issuer Intercompany Loan
Confirmation, the Current Issuer has agreed to make available to Funding
the Current Issuer Intercompany Loan.
(B) Pursuant to the terms of the Current Issuer Start-up Loan Agreement, the
Current Issuer Start-up Loan Provider has agreed to grant to Funding the
Current Issuer Start-up Loan.
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(C) This Deed is supplemental to the Funding Deed of Charge, pursuant to
which Funding agreed to provide the Security Trustee with the benefit of
the security described in the Funding Deed of Charge to secure Funding's
obligations to the Funding Secured Creditors.
(D) The terms of the Funding Deed of Charge permit Funding to secure its
obligations to a New Funding Secured Creditor thereunder and (where such
New Funding Secured Creditor is a New Issuer) permit Funding to create
certain Security Interests in favour of the Security Trustee for the
benefit of such New Funding Secured Creditor.
(E) The Current Issuer Start-up Loan Provider and the Current Issuer, each
of whom is a New Funding Secured Creditor, have agreed to enter into
this Deed of Accession (this "Deed") to accede to the provisions of the
Funding Deed of Charge.
(F) The Current Issuer Note Trustee has agreed to enter into this Deed to
accede to the provisions of the Funding Deed of Charge.
(G) The Funding Secured Creditors have agreed to enter into this Deed to,
among other things, acknowledge and agree to such accessions, permit any
consequential changes to the Funding Priority of Payments set out in
Part I, Part II and Part III of Schedule 3 of the Funding Deed of Charge
as are required and any other amendment as may be required to give
effect to this Deed and to acknowledge the Security Interests created
hereunder.
1. Interpretation
The provisions of the Master Definitions Schedule as amended and
restated by (and appearing in Appendix 1 to) the Master Definitions
Schedule Seventh Amendment Deed made on 26 January 2004 between, among
others, the Seller, Funding and the Mortgages Trustee (as the same have
been and may be amended, varied or supplemented from time to time with
the consent of the parties hereto) are expressly and specifically
incorporated into and shall apply to this Agreement.
2. Representations and Warranties
2.1 The Current Issuer hereby represents and warrants to the Security
Trustee and each of the Funding Secured Creditors in respect of itself
that as of the date of this Deed:
(a) pursuant to the terms of the Current Issuer Intercompany Loan
Agreement, Funding has agreed to pay to the Current Issuer fees,
interest and principal in accordance with the terms of the Current
Issuer Intercompany Loan Agreement; and
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(b) the Current Issuer Intercompany Loan Agreement expressly provides
that all amounts due from Funding thereunder are to be secured by
or pursuant to the Funding Deed of Charge.
2.2 The Current Issuer Start-up Loan Provider hereby represents and warrants
to the Security Trustee and each of the Funding Secured Creditors in
respect of itself that as of the date of this Deed:
(a) Funding has agreed to pay interest and repay principal to the
Current Issuer Start-up Loan Provider in accordance with the terms
of the Current Issuer Start-up Loan Agreement; and
(b) the Current Issuer Start-up Loan Agreement expressly provides that
all amounts due from Funding thereunder are to be secured by or
pursuant to the Funding Deed of Charge.
2.3 Funding hereby represents and warrants to the Security Trustee and each
of the Funding Secured Creditors that as at the date of this Deed, the
conditions to incurring further secured financial indebtedness set out
in Clause 2.2 (New Intercompany Loan Agreements) of the Intercompany
Loan Terms and Conditions are satisfied.
3. Accession
3.1 In consideration of the Current Issuer New Funding Secured Creditors
being accepted as Funding Secured Creditors for the purposes of the
Funding Deed of Charge by the parties thereto as from the date of this
Deed, each of the Current Issuer New Funding Secured Creditors:
(a) confirms that as from the date of this Deed, it will become and
intends to be a party to the Funding Deed of Charge as a Funding
Secured Creditor;
(b) undertakes to comply with and be bound by all of the provisions of
the Master Definitions Schedule and the Current Issuer Master
Definitions Schedule (as the same may be amended, varied or
restated from time to time) and the Funding Deed of Charge in its
capacity as a Funding Secured Creditor, as if it had been an
original party thereto;
(c) undertakes to perform, comply with and be bound by all of the
provisions of the Funding Deed of Charge in its capacity as a
Funding Secured Creditor, as if it had been an original party
thereto including, without limitation, Clause 20.3 (Funding Secured
Creditors), Clause 8.3 (Funding Post-Enforcement Priority of
Payments), Clause 8.6 (Security Trustee Rights upon Enforcement)
and Clause 6 (Restrictions on Exercise of Certain Rights); and
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(d) agrees that the Security Trustee shall be the Security Trustee of
the Funding Deed of Charge for all Funding Secured Creditors upon
and subject to the terms set out in the Funding Deed of Charge.
3.2 The Current Issuer Note Trustee:
(a) confirms that as of the date of this Deed, it becomes and intends
to be party to the Funding Deed of Charge; and
(b) agrees to comply with and be bound by the provisions of the Funding
Deed of Charge relating to the Note Trustee and agrees that all
references to the Note Trustee in the Funding Deed of Charge and
this Deed shall be construed as including the note trustee under
the Current Issuer Deed of Charge and Current Issuer Trust Deed.
4. Funding Security
4.1 Funding, by way of first fixed security for the payment or discharge of
that portion of the Funding Secured Obligations which represent the
obligations and liabilities of Funding to the Current Issuer under the
Current Issuer Intercompany Loan Agreement, subject to Clause 4 (Release
of Funding Charged Property) of the Funding Deed of Charge, hereby:
(a) assigns by way of first fixed security to the Security Trustee for
the benefit of the Current Issuer all of its right, title, benefit
and interest, present and future, in, to and under:
(i) the Funding (Current Issuer) Bank Account Agreement; and
(ii) the Funding (Current Issuer) Guaranteed Investment Contract,
including all rights to receive payment of any amounts which
may become payable to Funding thereunder and all payments
received by Funding thereunder including, without
limitation, all rights to serve notices and/or make demands
thereunder and/or to take such steps as are required to
cause payments to become due and payable thereunder and all
rights of action in respect of any breach thereof and all
rights to receive damages or obtain relief in respect
thereof and the proceeds of any of the foregoing, TO HOLD
the same unto the Security Trustee absolutely;
(b) assigns by way of first fixed security in favour of the Security
Trustee for the benefit of the Current Issuer all of its rights,
title, benefit and interest, present and future, in and to all
monies now or at any time hereafter standing to the credit of the
Funding (Current Issuer) GIC Account and the debts represented by
them together with all rights and claims relating or attached
thereto
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including, without limitation, the right to interest and the
proceeds of any of the foregoing, TO HOLD the same unto the
Security Trustee absolutely; and
(c) charges by way of first fixed security to the Security Trustee for
the benefit of the Current Issuer all of its right, title, benefit
and interest, present and future in, to and under any Authorised
Investment purchased using monies standing to the credit of the
Funding (Current Issuer) GIC Account and all rights in respect of
or ancillary to such Authorised Investments, including the right to
income and the proceeds of any of the foregoing, TO HOLD the same
unto the Security Trustee absolutely.
4.2 (a) Funding, by way of first fixed security for the payment or
discharge of the Funding Secured Obligations, subject to Clause 4
(Release of Funding Charged Property) of the Funding Deed of
Charge, hereby assigns to the Security Trustee, save to the extent
that the same may be situate in Jersey at any relevant time, all of
its right, title, benefit and interest, present and future, in, to
and under the Current Issuer Start-up Loan Agreement, including,
without limitation, all rights to receive payment of any amounts
which may become payable to Funding thereunder and all payments
received by Funding thereunder, all rights to serve notices and/or
make demands thereunder and/or to take such steps as are required
to cause payments to become due and payable thereunder, all rights
of action in respect of any breach thereof and all rights to
receive damages or obtain relief in respect thereof and the
proceeds of any of the foregoing, TO HOLD the same unto the
Security Trustee absolutely.
(b) To the intent that the Security Trustee shall have a security
interest in accordance with the Jersey Security Law (and as secured
party for the purposes of such law) for the payment or discharge of
the Funding Secured Obligations, subject to Clause 4 (Release of
Funding Charged Property) of the Funding Deed of Charge, Funding
(as debtor for the purposes of the Jersey Security Law) hereby
assigns, to the extent that the same may be situate in Jersey at
any relevant time to the Security Trustee all of its right, title,
benefit and interest, present and future, in, to and under the
Current Issuer Start-up Loan Agreement, including, without
limitation, all rights to receive payment of any amounts which may
become payable to Funding thereunder and all payments received by
Funding thereunder, all rights to serve notices and/or make demands
thereunder and/or to take such steps as are required to cause
payments to become due and payable thereunder, all rights of action
in respect of any breach thereof and all rights to receive damages
or obtain relief in respect thereof and the proceeds of any of the
foregoing, TO HOLD the same unto the Security Trustee absolutely.
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5. Title Guarantee
Each of the dispositions of, assignments of and charges over, property
effected in or pursuant to Clause 4 (Accounts for Issuers) is made with
full title guarantee.
6. Application
Prior to and following enforcement of the Funding Security all amounts
at any time held by Funding, the Cash Manager or the Security Trustee in
respect of the security created under this Deed shall be held and/or
applied by such person subject to and in accordance with the relevant
provisions of the Funding Deed of Charge.
7. Scope of the Funding Deed of Charge
Funding, the Current Issuer New Funding Secured Creditors and the
Funding Secured Creditors (including the Security Trustee) hereby agree
that for the relevant purposes under the Funding Deed of Charge and the
Master Definitions Schedule:
(a) the Current Issuer Intercompany Loan Agreement shall be treated as
a Funding Transaction Document;
(b) the Current Issuer Start-up Loan Agreement shall be treated as a
Funding Transaction Document;
(c) the Funding (Current Issuer) Bank Account Agreement shall be
treated as a Funding Transaction Document;
(d) the Funding (Current Issuer) Guaranteed Investment Contract shall
be treated as a Funding Transaction Document;
(e) the property and assets of Funding expressed to be assigned or
charged pursuant to this Deed shall constitute Funding Charged
Property; and
(f) each of the Current Issuer New Funding Secured Creditors shall be
treated as a Funding Secured Creditor.
8. Notices and Acknowledgements
(a) The execution of this Deed by the Current Issuer New Funding
Secured Creditors shall constitute notice to such Current Issuer
New Funding Secured Creditors of the assignments made by Funding
pursuant to Clause 3 (Funding Security) of the Funding Deed of
Charge. The execution of this Deed by each other Funding Secured
Creditor shall constitute notice to such Funding Secured Creditor
of the assignments made by Funding pursuant to this Deed.
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(b) By its execution of this Deed, each of the Current Issuer New
Funding Secured Creditors acknowledges that it has notice of and
consents to the assignments, charges and Security Interests
(including the Jersey Security Interests) made or granted by
Funding pursuant to Clause 3 (Funding Security) of the Funding Deed
of Charge and also acknowledges that as at the date hereof it has
not received from any other person any notice of any assignment or
charge of any of the property the subject of such Security
Interests. By its execution of this Deed, each other Funding
Secured Creditor acknowledges that it has notice of and consents to
the assignments, charges and Security Interests made or granted by
Funding pursuant to this Deed and also acknowledges that as at the
date hereof it has not received from any other person any notice of
any assignment or charge of any of the property the subject of such
Security Interests.
(c) Notwithstanding the assignments and charges granted pursuant to
Clause 3 (Funding Security) of the Funding Deed of Charge or
pursuant to this Deed, the parties hereto acknowledge that, subject
as provided otherwise in the Funding Deed of Charge, each Funding
Secured Creditor and each other party to any Funding Transaction
Document may continue to make all payments becoming due to Funding
under any Funding Transaction Document in the manner envisaged by
such Funding Transaction Document until the receipt of written
notice from the Security Trustee or any Receiver requiring payments
to be made otherwise.
9. Amendment to the Funding Priority of Payments
The Funding Secured Creditors agree to amend and restate the Funding
Priority of Payments set out in Part I and Part II of Schedule 3 of the
Funding Deed of Charge in accordance with Appendix 1 hereto.
10. Notices and Demands
Any notice or communication under or in connection with this Deed shall
be given in the manner and at the times set out in Clause 24 (Notices)
of the Funding Deed of Charge. For the purposes of such Clause 24
(Notices), as at the date of this Deed the relevant contact details for
the Current Issuer are:
Granite Mortgages 04-1 plc
Xxxxx Xxxxx
000 Xxxx Xxxxxx
Xxxxxx XX0X 0XX
For the attention of: The Company Secretary
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Telephone: x00 000 0000 0000
Facsimile: x00 000 0000 0000
and for the Current Issuer Start-up Loan Provider are:
Northern Rock PLC
Xxxxxxxx Xxxx Xxxxx
Xxxxxxxx
Xxxxxxxxx xxxx Xxxx
XX0 0XX
For the attention of: The Group Secretary
Facsimile: x00 (0)000 000 0000
and for the Current Issuer Note Trustee are:
The Bank of New York
00xx Xxxxx, Xxx Xxxxxx Xxxxxx
Xxxxxx X00 0XX
For the attention of: Corporate Trust (Global Structured Finance)
Facsimile: x00 (000) 0000 0000.
11. Non Petition Covenant
Each of the parties hereto hereby agrees that it shall not institute
against Funding, the Mortgages Trustee or any Issuer any winding-up,
administration, insolvency or similar proceedings in any jurisdiction
for so long as any sum is outstanding under any Intercompany Loan
Agreement of any Issuer or for two years plus one day since the last day
on which any such sum was outstanding provided that the Security Trustee
may prove or lodge a claim in the event of a liquidation initiated by
any other person. The provisions of Clause 6 (Restrictions on Exercise
of Certain Rights) of the Funding Deed of Charge shall prevail in the
event that and to the extent that they conflict with the provisions of
this Clause.
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12. Third Party Rights
A person who is not a party to this Deed may not enforce any of its
terms under the Contracts (Rights of Third Parties) Xxx 0000, but this
shall not affect any right or remedy of a third party which exists or is
available apart from that Act.
13. Execution in Counterparts
This Deed may be executed in any number of counterparts (manually or by
facsimile) and by different parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all
of which when taken together shall constitute one and the same
instrument.
14. Governing Law and Jurisdiction; Appropriate Forum
14.1 This Deed is governed by and shall be construed in accordance with
English law save that those parts of this Deed concerned with the
creation, subsistence or enforcement of Jersey Security Interests shall
be governed by and in accordance with Jersey law.
14.2 Each of the parties hereto irrevocably agrees that the courts of England
shall have jurisdiction to hear and determine any suit, action or
proceeding, and to settle any disputes, which may arise out of or in
connection with this Deed and, for such purposes, irrevocably submits to
the jurisdiction of such courts.
14.3 Each of the parties hereto irrevocably waives any objection which it
might now or hereafter have to the courts of England being nominated as
the forum to hear and determine any Proceedings and to settle any
disputes, and agrees not to claim that any such court is not a
convenient or appropriate forum.
15. Process Agents
Funding irrevocably and unconditionally appoints Mourant & Co. Capital
(SPV) Limited at 0 Xxxxx Xxxx Xxxxx, Xxxxxx XX0X 0XX or otherwise at the
registered office of Mourant & Co. Capital (SPV) Limited for the time
being as its agent for service of process in England in respect of any
proceedings in respect of this Agreement and undertakes that in the
event of Mourant & Co. Capital (SPV) Limited ceasing so to act it will
appoint another person with a registered office in London as its agent
for service of process.
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DULY EXECUTED AND DELIVERED AS A DEED by each of the parties hereto or on its
behalf on the date appearing on page one.
Funding
Executed by
GRANITE FINANCE FUNDING LIMITED
as its deed as follows: By
Signed for and on its behalf by one of its directors and by ------------------------------------------------------
another of its directors/its secretary Director
Name
------------------------------------------------------
By
------------------------------------------------------
Director/Secretary
Name
------------------------------------------------------
The Security Trustee/The Note Trustee in respect of the Previous Issuers
and the Current Issuer Note Trustee
Executed by
THE BANK OF NEW YORK
as its deed as follows: By
Signed for and on its behalf by one of its duly authorised ------------------------------------------------------
signatories
Name
------------------------------------------------------
Executed by
GRANITE MORTGAGES 01-1 PLC
as its deed as follows: By
Signed for and on its behalf by one of its directors and by ------------------------------------------------------
another of its directors/its secretary for and on behalf of LDC Securitisation Director
No.1 Ltd
Name Xxxxx Xxxxxxxxx
------------------------------------------------------
By
------------------------------------------------------
for and on behalf of LDC Securitisation Director
No.2 Ltd
Name Xxx Xxxxxx
------------------------------------------------------
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Executed by
GRANITE MORTGAGES 01-2 PLC
as its deed as follows: By
Signed for and on its behalf by one of its directors and by ------------------------------------------------------
another of its directors/its secretary for and on behalf of LDC Securitisation Director
No.1 Ltd
Name Xxxxx Xxxxxxxxx
------------------------------------------------------
By
------------------------------------------------------
for and on behalf of LDC Securitisation Director
No.2 Ltd
Name Xxx Xxxxxx
------------------------------------------------------
Executed by
GRANITE MORTGAGES 02-1 PLC
as its deed as follows: By
Signed for and on its behalf by one of its directors and by ------------------------------------------------------
another of its directors/its secretary for and on behalf of LDC Securitisation Director
No.1 Ltd
Name Xxxxx Xxxxxxxxx
------------------------------------------------------
By
------------------------------------------------------
for and on behalf of LDC Securitisation Director
No.2 Ltd
Name Xxx Xxxxxx
------------------------------------------------------
Executed by
GRANITE MORTGAGES 02-2 PLC
as its deed as follows: By
Signed for and on its behalf by one of its directors and by ------------------------------------------------------
another of its directors/its secretary for and on behalf of LDC Securitisation Director
No.1 Ltd
Name Xxxxx Xxxxxxxxx
------------------------------------------------------
By
------------------------------------------------------
for and on behalf of LDC Securitisation Director
No.2 Ltd
Name Xxx Xxxxxx
------------------------------------------------------
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Executed by
GRANITE MORTGAGES 03-1 PLC
as its deed as follows: By
Signed for and on its behalf by one of its directors and by ------------------------------------------------------
another of its directors/its secretary for and on behalf of LDC Securitisation Director
No.1 Ltd
Name Xxxxx Xxxxxxxxx
------------------------------------------------------
By
------------------------------------------------------
for and on behalf of LDC Securitisation Director
No.2 Ltd
NameIan Xxxxxx
------------------------------------------------------
Executed by
GRANITE MORTGAGES 03-2 PLC
as its deed as follows: By
Signed for and on its behalf by one of its directors and by ------------------------------------------------------
another of its directors/its secretary for and on behalf of LDC Securitisation Director
No.1 Ltd
Name Xxxxx Xxxxxxxxx
------------------------------------------------------
By
------------------------------------------------------
for and on behalf of LDC Securitisation Director
No.2 Ltd
Name Xxx Xxxxxx
------------------------------------------------------
Executed by
GRANITE MORTGAGES 03-3 PLC
as its deed as follows: By
Signed for and on its behalf by one of its directors and by ------------------------------------------------------
another of its directors/its secretary for and on behalf of LDC Securitisation Director
No.1 Ltd
Name Xxxxx Xxxxxxxxx
------------------------------------------------------
By
------------------------------------------------------
for and on behalf of LDC Securitisation Director
No.2 Ltd
Name Xxx Xxxxxx
------------------------------------------------------
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Current Issuer
Executed by
GRANITE MORTGAGES 04-1 PLC
as its deed as follows: By
Signed for and on its behalf by one of its directors and by ------------------------------------------------------
another of its directors/its secretary for and on behalf of LDC Securitisation Director
No.1 Ltd
Name Xxxxx Xxxxxxxxx
------------------------------------------------------
By
------------------------------------------------------
for and on behalf of LDC Securitisation Director
No.2 Ltd
Name Xxx Xxxxxx
------------------------------------------------------
The Cash Manager, the Previous Start-up Loan Provider and
the Current Issuer Start-up Loan Provider
Executed by
northern rock plc
as its deed as follows: By
Signed for and on its behalf by one of its duly authorised ------------------------------------------------------
attorneys/signatories Duly Authorised Attorney/Signatory
Name
------------------------------------------------------
Signature
-----------------------------------------------------
Witness
Full name
-----------------------------------------------------
Occupation Solicitor
-----------------------------------------------------
Address c/o Sidley Xxxxxx Xxxxx & Xxxx
-----------------------------------------------------
0 Xxxxxxxxxxxx Xxxxxx
-----------------------------------------------------
Xxxxxx XX0X 0XX
-----------------------------------------------------
The Corporate Services Provider
Executed by
MOURANT & CO. CAPITAL (SPV) LIMITED
as its deed as follows: By
Signed for and on its behalf by one of its directors and by ------------------------------------------------------
another of its directors/its secretary Director
Name
------------------------------------------------------
By
------------------------------------------------------
Director/Secretary
Name
------------------------------------------------------
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The Account Bank and the Funding GIC Provider
Executed by
LLOYDS TSB BANK PLC
as its deed as follows: By
Signed for and on its behalf by one of its duly authorised ------------------------------------------------------
attorneys/signatories Duly Authorised Attorney/Signatory
Name
------------------------------------------------------
Signature
-----------------------------------------------------
Witness
Full name
-----------------------------------------------------
Occupation Solicitor
-----------------------------------------------------
Address c/o Sidley Xxxxxx Xxxxx & Xxxx
-----------------------------------------------------
0 Xxxxxxxxxxxx Xxxxxx
-----------------------------------------------------
Xxxxxx XX0X 0XX
-----------------------------------------------------
The Mortgages Trustee
Executed by By
GRANITE FINANCE TRUSTEES LIMITED
as its deed as follows:
Signed for and on its behalf by one of its directors and by
another of its directors/its secretary
------------------------------------------------------
Director
Name
------------------------------------------------------
By
------------------------------------------------------
Director/Secretary
Name
------------------------------------------------------
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SCHEDULE I
Utilisation of Issuer Reserves
Reserves for Current Issuer
1. Current Issuer Reserve Fund:
1.1 Prior to enforcement of the Current Issuer Security, the Current Issuer
Reserve Fund shall only be applied on any Payment Date to increase that
portion of Funding Available Revenue Receipts which are allocated to the
Current Issuer to make payments of interest and fees due under the
Current Issuer Intercompany Loan.
1.2 Following enforcement of the Current Issuer Security, to the extent not
applied on a Payment Date in accordance with 1.1 above, amounts standing
to the credit of the Current Issuer Reserve Fund Ledger shall only be
applied in making payments of principal due under the Current Issuer
Intercompany Loan (but not in respect of any other Intercompany Loan of
any other Issuer) .
2. Current Issuer Liquidity Reserve Fund:
2.1 Prior to enforcement of the Current Issuer Security, the Current Issuer
Liquidity Reserve Fund (if any is required to be established) shall only
be applied on any Payment Date to:
(a) help meet any deficit in Funding Available Revenue Receipts which
are allocated to the Current Issuer to pay amounts due under the
Current Issuer Intercompany Loan, but only to the extent necessary
to fund the payment by the Current Issuer of interest and fees due
on the relevant Interest Payment Date in respect of the Class A
Notes and/or the Class B Notes and to credit the Class A Principal
Deficiency Sub Ledger;
(b) (provided that there are no Class A Notes outstanding) help meet
any deficit in Funding Available Revenue Receipts which are
allocated to the Current Issuer to pay interest and fees due on the
Current Issuer Intercompany Loan; and
(c) help meet any deficit in Funding Available Principal Receipts which
are allocated to the Current Issuer to pay all principal due on the
Final Maturity Date of the Series 1 Class A1 Notes.
2.2 Following enforcement of the Current Issuer Security, to the extent not
applied on a Payment Date in accordance with 2.1 above, amounts standing
to the credit of the Current Issuer Liquidity Reserve Ledger shall only
be applied in making payments of principal due under the Current Issuer
Intercompany Loan (but not in respect of any other Intercompany Loan of
any other Issuer).
16
APPENDIX 1
Amended and Restated Funding Priority of Payments
Part I
Funding Pre-Enforcement Revenue Priority of Payments
Distribution of Funding Available Revenue Receipts prior to Enforcement of the
Funding Security
On each Payment Date or, in respect of amounts due to third parties by Funding
under paragraph (B), when due, prior to enforcement of the Funding Security,
the Cash Manager will, subject to the rules for application of Funding
Available Revenue Receipts (set out below), apply Group 1 Available Revenue
Receipts, Group 2 Available Revenue Receipts and amounts standing to the
credit of the Funding Expense Sub-Ledger, as applicable, in the following
order of priority (the "Funding Pre-Enforcement Revenue Priority of
Payments"):
(A) first, to pay amounts due to the Security Trustee (together with
interest and (to the extent not already inclusive) VAT on those
amounts) and to provide for any amounts due or to become due during
the following Interest Period to the Security Trustee, under the
Funding Deed of Charge or any other Transaction Document;
(B) second, to pay amounts due to any third party creditors of Funding
(other than those referred to later in this order of priority of
payments or in the Funding Pre-enforcement Principal Priority of
Payments) of which the Cash Manager has notice prior to the
relevant Payment Date, which amounts have been incurred without
breach by Funding of the Transaction Documents to which it is a
party (and for which payment has not been provided for elsewhere)
and to provide for any such amounts expected to become due and
payable by Funding during the following Interest Period and to pay
or discharge any liability of Funding for corporation tax on any
chargeable income or gain of Funding;
(C) third, towards payment of amounts due to the Cash Manager under the
Cash Management Agreement (together with (to the extent not already
inclusive) VAT on those amounts);
(D) fourth, in no order of priority among them, but in proportion to
the respective amounts due, towards payment of amounts, if any, due
to the Account Bank under the terms of the Bank Account Agreement
and to the Corporate Services Provider under the Corporate Services
Agreement;
17
(E) fifth, to pay, in no order of priority among them, to each Issuer
an amount up to its Issuer Allocable Revenue Receipts in respect of
interest and fees due on that Issuer's Intercompany Loan but not
exceeding the aggregate amount of, and to be applied in the amounts
and priorities set forth in, the Issuer Pre-Liquidity Payments for
that Issuer;
(F) sixth, to pay, in no order of priority among them, such amount for
each Issuer up to its Issuer Allocable Revenue Receipts as is
necessary to replenish the Issuer Liquidity Reserve Fund, if any,
established in respect of that Issuer up to the Issuer Liquidity
Reserve Required Amount (but only to the extent that monies have
been drawn from the relevant Issuer Liquidity Reserve Fund to pay
interest and fees due under the relevant Intercompany Loan and only
to replenish the Issuer Liquidity Reserve Fund of an Issuer to the
extent that there are Class A Notes issued by the such Issuer
outstanding on such Payment Date);
(G) seventh, to pay, in no order of priority among them, to each Issuer
an amount up to its Issuer Allocable Revenue Receipts in respect of
interest and fees due on that Issuer's Intercompany Loan but not
exceeding the aggregate amount of, and to be applied in the amounts
and priorities set forth in, the Issuer Post-Liquidity Payments for
that Issuer;
(H) eighth, to pay, in no order of priority among them, such amount for
each Issuer up to its Issuer Allocable Revenue Receipts as is
necessary to fund the Issuer Reserve Fund established in respect of
that Issuer up to the Issuer Reserve Required Amount or to
replenish such Issuer Reserve Fund up to the related Issuer Reserve
Required Amount (to the extent that monies have been drawn from
such Issuer Reserve Fund to pay interest and fees under the
relevant Intercompany Loan);
(I) ninth, to pay in no order of priority among them, to each Issuer an
amount up to its Issuer Allocable Revenue Receipts in respect of
interest, principal (in the case of the Special Repayment Notes)
and fees due on that Issuer's Intercompany Loan but not exceeding
the aggregate amount of, and to be applied in the amounts and
priorities set forth in, the Issuer Pre-Reserve Payments for that
Issuer;
(J) tenth, in no order of priority among them, from Issuer Allocable
Revenue Receipts, to credit the Funding Reserve Ledger in an amount
up to the Funding Reserve Required Amount;
(K) eleventh, to pay to each Issuer, in no order of priority among them
but in proportion to the respective amounts due, an amount up to
its Issuer Allocable
18
Revenue Receipts in respect of interest and fees due on that
Issuer's Intercompany Loan but not exceeding the aggregate amount
of, and to be applied in the amounts and priorities set forth in,
the Issuer Post-Reserve Payments for that Issuer;
(L) twelfth, in no order of priority among them, but in proportion to
the respective amounts due, from Issuer Allocable Revenue Receipts,
towards payment of interest and principal amounts due to each
Issuer Start-up Loan Provider under the relevant Issuer Start-up
Loan Agreement;
(M) thirteenth, in no order of priority among them, but in proportion
to the respective amounts due, to pay to each Issuer an amount up
to its Issuer Allocable Revenue Receipts in respect of interest and
fees and any other amount (if any) due on that Issuer's
Intercompany Loan but not exceeding the aggregate amount of, and to
be applied in the amounts and priorities set forth in, the Issuer
Post Start-up Payments for that Issuer;
(N) fourteenth, to the extent required, to apply, on the Payment Date
for Group 1 Issuers, all Group 1 Shared Issuer Revenue Receipts or,
on the Payment Date for Group 2 Issuers, Group 2 Shared Issuer
Revenue Receipts, as applicable, in the priorities set forth in
items (E) through (M) above;
(O) fifteenth, towards payment to Funding of an amount equal to 0.01%
per annum of the Funding Available Revenue Receipts, which amount
will be retained by Funding as profit less corporation tax in
respect of those profits provided for or paid at item (B) above;
(P) sixteenth, towards payment of any Deferred Contribution due to the
Mortgages Trustee pursuant to the terms of the Mortgages Trust
Deed; and
(Q) last, towards payment to the shareholders of Funding of any
dividend declared by Funding.
PROVIDED THAT no amount will be applied in replenishing any of the reserve
funds held by Funding in respect of an Issuer under paragraphs (F) and/or (H)
above following an enforcement of the Issuer Security relating to that Issuer.
For the avoidance of doubt, references to the Issuer Allocable Revenue
Receipts for a particular Issuer in items (E) through (M) (inclusive) above
shall be reduced by any amounts already allocated to that Issuer in the above
Priority of Payments on that Payment Date.
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Rules for application of Funding Available Revenue Receipts
(1) (A) Subject as provided in paragraphs (2) through (9) below, the
portion of Issuer Allocable Revenue Receipts for all Group 1
Issuers remaining after item (M) of the Funding Pre-Enforcement
Revenue Priority of Payments, together with any additional Funding
Available Revenue Receipts under paragraph (3) below, shall
constitute "Group 1 Shared Issuer Revenue Receipts". Group 1 Shared
Issuer Revenue Receipts will be reallocated by the Cash Manager on
a Payment Date for Group 1 Issuers in accordance with item (N) of
the Funding Pre-Enforcement Revenue Priority of Payments and will
continue to be distributed on such Payment Date in accordance with
items (E) through (M) of the Funding Pre-Enforcement Revenue
Priority of Payments until there are no remaining amounts of Group
1 Shared Issuer Revenue Receipts to be reallocated and distributed
on such Payment Date. If there is more than one Group 1 Issuer that
is entitled to Group 1 Shared Issuer Revenue Receipts then each
such Group 1 Issuer will be reallocated a portion of the Group 1
Shared Issuer Revenue Receipts equal to:
Outstanding Principal Balance of
the Intercompany Loan of such Group 1 Issuer
Amount of Shared Group 1 Issuer Revenue Receipts x ---------------------------------------------
Aggregate Outstanding Principal Balance of
the Intercompany Loans of all Group 1 Issuers
(B) Subject as provided in paragraphs (2) through (4) below, the
portion of Issuer Allocable Revenue Receipts for all Group 2
Issuers remaining after item (M) of the Funding Pre-Enforcement
Revenue Priority of Payments, together with any additional Funding
Available Revenue Receipts under paragraph (3) below, shall
constitute "Group 2 Shared Issuer Revenue Receipts". Group 2 Shared
Issuer Revenue Receipts will be reallocated by the Cash Manager on
a Payment Date for Group 2 Issuers distributed on such Payment Date
in accordance with item (N) of the Funding Pre-Enforcement Revenue
Priority of Payments and will continue to be distributed on such
Payment Date in accordance with items (E) through (M) of the
Funding Pre-Enforcement Revenue Priority of Payments until there
are no remaining amounts of Group 2 Shared Issuer Revenue Receipts
to be reallocated and distributed on such Payment Date. If there is
more than one Group 2 Issuer that is entitled to Group 2 Shared
Issuer Revenue Receipts, then each such Group 2 Issuer will be
reallocated a portion of Shared Issuer Revenue Receipts equal to:
20
Outstanding Principal Balance of
the Intercompany Loan of such Group 2 Issuer
Amount of Shared Group 2 Issuer Revenue Receipts x ---------------------------------------------
Aggregate Outstanding Principal Balance of
the Intercompany Loans of all Group 2 Issuers
(2) No Issuer shall be entitled to or shall receive any amount of Issuer
Allocable Revenue Receipts from Funding on a Payment Date on which such
Issuer is not required by that Issuer to make a payment on that date in
accordance with the relevant Issuer Pre-Enforcement Revenue Priority of
Payments or other relevant Issuer Priority of Payments which applies to
that Issuer on that date, and the Cash Manager will take account of all
of the funds which are or will become available to that Issuer on that
Payment Date and which constitute Issuer Available Revenue Receipts
(including any payments due under any Swap Agreement and any interest or
other income received or to be received) for that Issuer for the purpose
of making this determination.
(3) Unless and until the Intercompany Loan of any Issuer has been repaid in
full and Funding has no further liability under the relevant
Intercompany Loan Agreement, amounts standing to the credit of the
Issuer Reserve Ledger and the Issuer Liquidity Reserve Ledger, if any,
established by Funding for that Issuer may only be utilized by Funding
in making payments due under that Issuer's Intercompany Loan and may not
be used in or towards the payment of any other liability of Funding. On
the Payment Date following the repayment in full of the Intercompany
Loan of that Issuer and provided that Funding has no further liability
in respect of the relevant Intercompany Loan Agreement, any remaining
amounts standing to the credit of the Issuer Reserve Ledger and the
Issuer Liquidity Reserve Ledger, if any, of that Issuer will constitute
additional Funding Available Revenue Receipts for the purpose of
paragraphs (N) through (Q) of the Funding Pre-Enforcement Revenue
Priority of Payments and may be utilized by Funding in paying any other
liability of Funding subject to and in accordance with the relevant
Funding Priority of Payments.
(4) If on any Payment Date any Issuer Allocable Revenue Receipts and/or any
Group 1 Shared Issuer Revenue Receipts or Group 2 Shared Issuer Revenue
Receipts, as applicable, are paid to an Issuer and are applied by that
Issuer, in reducing any deficiency recorded on the Issuer Principal
Deficiency Ledger of that Issuer (but only to the extent that any
deficiency which has arisen as a result of (i) losses on the Mortgage
Loans allocated by Funding to the Issuer and/or (ii) the application of
Funding Available Principal Receipts to fund the Issuer Liquidity
Reserve Fund of the Issuer, but not as a result of any other principal
deficiency of the Issuer), then the Issuer Allocable Revenue Receipts
and/or Group 1 Shared Issuer Revenue Receipts or Group 2 Shared Issuer
Revenue Receipts, as applicable, so applied shall constitute
21
repayments of principal under the relevant Intercompany Loan and shall
reduce the Outstanding Principal Balance of that Intercompany Loan
accordingly.
To the extent that (a) an amount payable to an Issuer pursuant to the
Funding Pre-Enforcement Revenue Priority of Payments on any Payment Date
would, in accordance with the Issuer Pre-Enforcement Revenue Priority of
Payments relating to the Issuer, be credited by the Issuer to its Issuer
Principal Deficiency Ledger, and (b) the amount to be treated as
principal as a result of making such credit would result in the Issuer
Available Principal Receipts of that Issuer on that Payment Date being
in excess of the Principal Amount to be repaid by that Issuer in respect
of its Notes on that Payment Date, then an amount equal to that excess
shall be reapplied by Funding as Group 1 Available Principal Receipts or
Group 2 Available Principal Receipts, as applicable.
(5) The Cash Manager will distribute Group 1 Available Revenue Receipts only
on each Payment Date for Group 1 Issuers and Group 2 Available Revenue
Receipts only on each Payment Date for Group 2 Issuers. Group 1
Available Revenue Receipts and Group 2 Available Revenue Receipts will
be applied (subject to paragraph (7) below) to pay amounts set forth in
paragraphs (E)-(Q) of the Funding Pre-Enforcement Revenue Priority of
Payments and (D)-(G) of the Funding Post-Enforcement Priority of
Payments.
(6) All references to an "Issuer" or "Issuers" in the Funding
Pre-Enforcement Revenue Priority of Payments shall be construed to refer
to an Issuer or Issuers in Group 1 on a Payment Date for Group 1 Issuers
and in Group 2 on a Payment Date for Group 2 Issuers.
(7) On Payment Dates for both Group 1 Issuers and Group 2 Issuers, the Cash
Manager will apply amounts standing to the credit of the Funding Expense
Sub-Ledger on the immediately preceding Distribution Date to pay the
amounts set forth in paragraphs (A)-(D) of the Funding Pre-Enforcement
Revenue Priority of Payments and paragraph (A)-(C) of the Funding
Post-Enforcement Priority of Payments.
(8) To the extent that on any Payment Date for Group 1 Issuers or Payment
Date for Group 2 Issuers amounts standing to the credit of the Funding
Expense Sub-Ledger distributed pursuant to paragraph (7) above are
insufficient to pay all amounts described in such paragraph (7), then
the Cash Manager will apply amounts standing to the credit of the
Funding Reserve Ledger to meet such a shortfall. To the extent that on
any Payment Date amounts standing to the credit of the Funding Reserve
Ledger and applied pursuant to the preceding sentence are insufficient
to pay all amounts described in paragraph (7) above, then the Cash
Manager will apply on the Payment Date for Group 1 Issuers, Group 1
Available Revenue Receipts or on the Payment Date for Group 2 Issuers,
Group 2 Available Revenue Receipts, as applicable, to pay such amounts.
To the extent that amounts standing to the credit of the Funding Reserve
Ledger are applied to pay any amounts described in paragraph (7) above
then the amounts standing to the credit of the Funding Reserve Ledger as
at the Distribution Date immediately preceeding the relevant Payment
Date
22
(unless such Payment Date is also a Funding Reserve Adjustment Date, in
which case the relevant date will be the Distribution Date immediately
preceding the immediately preceding Payment Date) above shall be deemed
to have been reduced by the amount applied to pay amounts described in
paragraph 7 above.
(9) Group 1 Available Revenue Receipts may not be used to make payments to
Group 2 Issuers and Group 2 Available Revenue Receipts may not be used
to make payments to Group 1 Issuers.
23
Part II
Funding Pre-Enforcement Principal Priority of Payments
On each Payment Date prior to enforcement of the Funding Security, the Cash
Manager will, subject to the rules for application of Funding Available
Principal Receipts set forth below, apply Group 1 Available Principal Receipts
or Group 2 Available Principal Receipts, as applicable, as follows (the
"Funding Pre-Enforcement Principal Priority of Payments"):
(1) On each Payment Date for Group 1 Issuers, Group 1 Available Principal
Receipts to each Group 1 Issuer in the following order of priority:
(A) first, to fund or replenish, as the case may be, the Issuer
Liquidity Reserve Fund, if any, of each Group 1 Issuer up to the
Issuer Liquidity Reserve Required Amount but only from and to the
extent of the Issuer Allocable Principal Receipts for that Issuer;
(B) second, to pay to (or, if required under that Issuer's Intercompany
Loan, set aside for) each Group 1 Issuer an amount up to its Issuer
Allocable Principal Receipts in respect of principal due (or, if
required under that Issuer's Intercompany Loan, to become due) on
that Issuer's Intercompany Loan, which shall be an amount up to the
aggregate amount of, and shall be applied in the amounts and
priorities set forth in, the Issuer Principal Payments for that
Issuer;
(C) third, to pay to (or, if required under that Issuer's Intercompany
Loan, set aside for) each Group 1 Issuer an amount up to its
allocable portion of Group 1 Shared Issuer Principal Receipts in
respect of principal due (or, if required under that Issuer's
Intercompany Loan, to become due) on that Issuer's Intercompany
Loan, which in the case of that Group 1 Issuer shall be an amount
up to the aggregate amount of, and shall be applied in the amounts
and priorities set forth in, the Issuer Principal Payments for that
Issuer until there are no remaining Group 1 Available Principal
Receipts on such Payment Date; and
(D) last, to credit any remaining amounts to the Funding Principal
Ledger.
(2) On each Payment Date for Group 2 Issuers, Group 2 Available Principal
Receipts to each Group 2 Issuer in the following order of priority:
(A) first, to fund (either initially or to replenish, as the case may
be) the Issuer Liquidity Reserve Fund, if any, of each Group 2
Issuer up to the Issuer Liquidity Reserve Required Amount but only
from and to the extent of the Issuer Allocable Principal Receipts
for that Issuer;
24
(B) second, to pay to (or, if required under that Issuer's Intercompany
Loan, set aside for) each Group 2 Issuer an amount up to its Issuer
Allocable Principal Receipts in respect of principal due (or, if
required under that Issuer's Intercompany Loan, to become due) on
that Issuer's Intercompany Loan, which shall be an amount up to the
aggregate amount of, and shall be applied in the amounts and
priorities set forth in, the Issuer Principal Payments for that
Issuer;
(C) third, to pay to (or, if required under the Issuer's Intercompany
Loan, set aside for) each Group 2 Issuer an amount up to its
allocable portion of Group 2 Shared Issuer Principal Receipts in
respect of principal due (or, if required under that Issuer's
Intercompany Loan, to become due) on that Issuer's Intercompany
Loan, which in the case of that Group 2 Issuer shall be an amount
up to the aggregate amount of, and shall be applied in the amounts
and priorities set forth in, the Issuer Principal Payments for that
Issuer until there are no remaining Group 2 Available Principal
Receipts on such Payment Date; and
(D) last, to credit any remaining amounts to the Funding Principal
Ledger.
PROVIDED THAT no amount will be applied in replenishing the Issuer Liquidity
Reserve Fund held by Funding in respect of an Issuer under paragraphs (1)(A)
or (2)(A) above following an enforcement of the Issuer Security relating to
that Issuer.
Rules for application of Funding available principal receipts
(1) (A) On the Distribution Date immediately preceding a Payment Date for
Group 1 Issuers, the Cash Manager will calculate the "Issuer Allocable
Principal Receipts" for each such Issuer in respect of the relevant
Payment Date which, subject as provided in paragraphs (2) through (8)
below, is for any Issuer an amount which is equal to the sum of:
(a) the aggregate of:
(i) for any Group 1 Issuer, the amount, if any, by which the
Issuer Liquidity Reserve Fund relating to that Issuer will
be less than the Issuer Liquidity Reserve Required Amount in
each case prior to the distribution of Group 1 Available
Principal Receipts on the Payment Date for Group 1 Issuers
immediately succeeding such Distribution Date; and
(ii) for any Group 1 Issuer which has a Money Market Note still
outstanding up to the amount equal to the Controlled
Amortization
25
Amount due on such Money Market Note, if any, on the Payment
Date for Group 1 Issuers immediately succeeding such
Distribution Date;
(b) for any Group 1 Issuer, an amount equal to the lesser of:
(i) (only if relevant) the principal amount due on the
Intercompany Loan of such Issuer which is an amount equal to
the Controlled Amortisation Amount due, if any, on the
Payment Date for Group 1 Issuers immediately succeeding such
Distribution Date (excluding any amount calculated in
accordance with paragraph 1(A)(a)); and
(ii) an amount equal to:
Group 1 Available Principal Receipts minus the aggregate Outstanding Principal Balance on such
amount under (1)(A)(a) above in respect of the relevant x Group 1 Issuer's Intercompany Loan
Issuer on such Payment Date -------------------------------------
Aggregate Outstanding Principal
Balance of all Intercompany Loans of
Group 1 Issuers
(B) On the Distribution Date immediately preceding a Payment Date for
Group 2 Issuers, the Cash Manager will calculate the "Issuer
Allocable Principal Receipts" for each such Issuer in respect of
the relevant Payment Date which, subject as provided in paragraphs
(2) through (8) below, is an amount which is equal to the sum of:
(a) the aggregate of:
(i) for any Group 2 Issuer, the amount, if any, by which the
Issuer Liquidity Reserve Fund relating to that Issuer will
be less than the Issuer Liquidity Reserve Required Amount in
each case prior to the distribution of Group 2 Available
Principal Receipts on the Payment Date for Group 2 Issuers
immediately succeeding such Distribution Date; and
(ii) for any Group 2 Issuer which has a Money Market Note still
outstanding, up to the amount equal to the Controlled
Amortization Amount due on each Money Market Note, if any,
on the Payment Date for Group 2 Issuers immediately
succeeding such Distribution Date; and
(b) for any Group 2 Issuer, an amount equal to the lesser of:
(i) (only if relevant) the principal amount due on the
Intercompany Loan of such Issuer which is an amount equal to
the Controlled Amortization Amount due, if any, on the
Payment Date for Group 2 Issuers immediately succeeding such
Distribution Date (excluding any amount calculated in
accordance with paragraph 1(B)(a)); and
26
(ii) an amount equal to:
Group 2 Available Principal Receipts minus the aggregate Outstanding Principal Balance on such
amount under (1)(B)(a) above in respect of the relevant x Group 2 Issuer's Intercompany Loan
Issuer on such Payment Date -------------------------------------
Aggregate Outstanding Principal
Balance of all Intercompany Loans of
Group 2 Issuers
PROVIDED THAT,
(a) subject as provided in paragraphs (2) through (8) below, for the
purpose only of determining the amount of Issuer Allocable
Principal Receipts which may be allocated and paid to the relevant
Group 1 Issuer or Group 2 Issuer (but not to any other Issuer) in
accordance with this paragraph (1), following an enforcement of the
Issuer Security relating to that Issuer the amount so determined
may be increased to the extent of the aggregate of any amounts
standing to the credit of the Issuer Liquidity Reserve Ledger, if
any, and the Issuer Reserve Ledger of that Issuer remaining on the
relevant Payment Date after the application of such reserve funds
in accordance with the Funding Pre-Enforcement Revenue Priority of
Payments; and
(b) for the purposes only of determining the amount of Group 1 Shared
Issuer Principal Receipts and Group 2 Shared Issuer Principal
Receipts in accordance with paragraph (6) below, Issuer Allocable
Principal Receipts (in respect of a Group 1 Issuer) shall be an
amount equal to the amount calculated in accordance with paragraphs
1(A)(a) and (1)(A)(b)(ii) and paragraph (1)(A)(b)(i) shall not
apply and (in respect of a Group 2 Issuer) shall be an amount equal
to the amount calculated in accordance with paragraphs (1)(B)(a)
and (1)(B)(b)(ii) above paragraph (1)(B)(b)(i) above shall not
apply.
(2) If the Notes of any Issuer have become immediately due and payable as a
result of the service of a Note Enforcement Notice or if the
Intercompany Loan of any Issuer and the other Intercompany Loans of any
other Issuers have become immediately due and payable as a result of the
service of an Intercompany Loan Enforcement Notice or otherwise on any
Payment Date following the occurrence of any Asset Trigger Event,
principal payments in respect of any Intercompany Loan may be made in
excess of any Controlled Amortisation Amount and paragraphs (1)(A)(a)
and 1(A)(b)(i) (in respect of a Group 1 Issuer), or paragraphs (1)(B)(a)
and 1(B)(b)(i) above (in respect of a Group 2 Issuer) shall no longer
apply in relation to that Issuer and the amount of Issuer Allocable
Principal Receipts payable to that Issuer on the relevant Payment Date
may not exceed the amount determined under paragraphs
27
(1)(A)(b)(ii) and (1)(B)(b)(ii) above (save that no deduction shall be
made from Funding Available Principal Receipts) but subject always to
any increase in that amount as a result of the utilisation of the Issuer
Reserve Fund and the Issuer Liquidity Reserve Fund (if any) following
enforcement of the Issuer Security relating to that Issuer as provided
in that paragraph. Following the occurrence of any Non-Asset Trigger
Event (but prior to the occurrence of an Asset Trigger Event), (1) the
reference in paragraph (1)(A)(a)(ii) and (1)(B)(a)(ii) above to the
"Controlled Amortization Amount due on such Money Market Note" shall be
deemed to refer to the "Outstanding Principal Balance of such Money
Market Note", and (2) paragraph (1)(A)(b)(i) above (in respect of a
Group 1 Issuer), or paragraph (1)(B)(b)(i) above (in respect of a Group
2 Issuer) shall no longer apply in relation to the relevant Issuer and
the amount of Issuer Allocable Principal Receipts payable to that Issuer
on the relevant Payment Date may not exceed the amount determined under
paragraph (1)(A)(b)(ii) above (in respect of a Group 1 Issuer) and
(1)(B)(b)(ii) above (in respect of a Group 2 Issuer, subject to the same
qualifications set forth in the immediately preceding paragraph.
(3) For the purpose of determining the amount of Issuer Allocable Principal
Receipts and/or any Group 1 Shared Issuer Principal Receipts or Group 2
Shared Issuer Principal Receipts which may be paid to any Issuer on a
Payment Date pursuant to paragraph (1) above or paragraph (6) below, the
Outstanding Principal Balance of the relevant Intercompany Loan shall be
deemed to be reduced by the amount of:
(A) any deficiency recorded on the Issuer Principal Deficiency Ledger
of the relevant Issuer as at the relevant Payment Date, but only to
the extent that such deficiency has arisen as a result of (i)
losses on the Mortgage Loans allocated by Funding to that Issuer
and/or (ii) the application of Funding Available Principal Receipts
to fund the Issuer Liquidity Reserve Fund of that Issuer but not as
a result of any other principal deficiency of that Issuer; and
(B) the Outstanding Principal Balance as at such Payment Date of any
Special Repayment Notes issued by that Issuer.
(4) The amount of Funding Available Principal Receipts payable to each
Issuer on a Payment Date will be reduced by an amount equal to the
aggregate of the Issuer Available Revenue Receipts of that Issuer which
are to be applied on that Payment Date in reducing deficiencies recorded
on the Issuer Principal Deficiency Ledgers, but only to the extent that
the Issuer Available Revenue Receipts which are to be so applied on that
Payment Date would not otherwise be payable as principal on the relevant
Notes on such Payment Date.
28
(5) No Issuer shall be entitled to, or shall receive on a Payment Date, any
amount of Issuer Allocable Principal Receipts from Funding which is not
required by that Issuer to make a payment on that date in accordance
with the relevant Issuer Pre-Enforcement Principal Priority of Payments
or otherwise to make a payment of principal on the Notes.
(6) (A) The portion of Issuer Allocable Principal Receipts (calculated in
accordance with paragraph 1(A)(b)(ii) above), if any, not required
to be applied by a Group 1 Issuer to pay principal on the Notes on
a Payment Date for Group 1 Issuers together with the portion of
Issuer Allocable Principal Receipts relating to all other Group 1
Issuers not required to be so applied by such other Group 1 Issuers
(or otherwise required to be set aside by Funding for any Group 1
Issuer) on that Payment Date (excluding the amount of any Group 1
Issuer Reserve Fund or Issuer Liquidity Reserve Fund (if any) of
any Group 1 Issuer), shall constitute "Group 1 Shared Issuer
Principal Receipts". Group 1 Shared Issuer Principal Receipts will
be reallocated by the Cash Manager and distributed on such Payment
Date among the Group 1 Issuers until there are no remaining amounts
of Group 1 Shared Issuer Principal Receipts to be reallocated and
distributed on such Payment Date. Save as provided in paragraph (2)
above, if there is more than one Group 1 Issuer that is entitled to
Group 1 Shared Issuer Principal Receipts, then each such Issuer
will be reallocated a portion of the Group 1 Shared Issuer
Principal Receipts equal to:
Outstanding Principal Balance of
the Intercompany Loan of such Group 1 Issuer
amount of Shared Group 1 Issuer Principal Receipts x --------------------------------------------
Aggregate Outstanding Principal Balance of
the Intercompany Loan of all Group 1 Issuers
(B) The portion of Issuer Allocable Principal Receipts (calculated in
accordance with paragraph (1)(B)(b)(ii) above), if any, not required to
be applied by a Group 2 Issuer to pay principal of the Notes on a
Payment Date for Group 2 Issuers together with the portion of Issuer
Allocable Principal Receipts relating to all other Group 2 Issuers not
required to be so applied by such other Group 2 Issuers (or otherwise
required to be set aside by Funding for any Group 2 Issuer) on that
Payment Date (excluding the amount of any Issuer Reserve Fund or Issuer
Liquidity Reserve Fund (if any) of any Group 2 Issuer) shall constitute
"Group 2 Shared Issuer Principal Receipts". Group 2 Shared Issuer
Principal Receipts will be reallocated by the Cash Manager and
distributed on such Payment Date among the Group 2 Issuers until there
are no remaining amounts of Group 2 Shared Issuer Principal Receipts to
be reallocated and distributed on such Payment Date. Save as provided in
paragraph (2) above, if there is more than one Group 2 Issuer that is
entitled to Group 2 Shared Issuer Principal Receipts, then each such
Group 2 Issuer will
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be reallocated a portion of the Group 2 Shared Issuer Principal Receipts
equal to:
Outstanding Principal Balance of
the Intercompany Loan of such Group 2 Issuer
Amount of Shared Group 2 Issuer Principal Receipts x --------------------------------------------
Aggregate Outstanding Principal Balance of
the Intercompany Loan of all Group 2 Issuers
(7) The repayment of any Intercompany Loan prior to the occurrence of a
Trigger Event, enforcement of the Issuer Security by the Note Trustee
under the relevant Issuer Deed of Charge or enforcement of the Funding
Security by the Security Trustee under the Funding Deed of Charge will
be made in accordance with the terms of the relevant Intercompany Loan
Agreement.
(8) The Cash Manager will distribute only Group 1 Available Principal
Receipts on each Payment Date for Group 1 Issuers and only Group 2
Available Principal Receipts on each Payment Date for Group 2 Issuers.
No payment may be made to Group 1 Issuers from Group 2 Available
Principal Receipts and no payment may be made to Group 2 Issuers from
Group 2 Available Principal Receipts.
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Part III
Funding Post-Enforcement Priority of Payments
At any time after the security created under the Funding Deed of Charge has
become enforceable in accordance with Clause 7.2 (Enforceable) thereof and
provided that the Intercompany Loan Enforcement Notice has not been withdrawn,
all Funding Available Revenue Receipts, Funding Available Principal Receipts
and all other monies paid to or received or recovered by or on behalf of
Funding or the Security Trustee or any Receiver appointed on its behalf,
including all proceeds following any sale, realisation or enforcement of the
security created under the Funding Deed of Charge and all amounts not
previously distributed and/or standing to the credit of any Funding Bank
Account and all monies standing to the credit of the Funding Reserve Ledger
(if any) shall (if not already received by the Security Trustee) be paid to
and held by the Security Trustee on trust to apply the same (save to the
extent required otherwise by applicable law) in accordance with the rules and
the order of priority of the Funding Post-Enforcement Priority of Payments.
The Security Trustee (or the Cash Manager on its behalf) will, subject to the
rules for application of Funding Available Principal Receipts and Funding
Available Revenue Receipts set out in Part I and Part II of this Schedule,
apply all such amounts received or recovered following enforcement of the
Funding Security on each Payment Date in accordance with the following order
of priority (the "Funding Post-Enforcement Priority of Payments"):
(A) first, from amounts standing to the credit of the Funding Expense
Sub-Ledger in respect of such Payment Date, to pay amounts due to
the Security Trustee and any Receiver appointed by the Security
Trustee, together with interest and (to the extent not already
inclusive) VAT on those amounts, and to provide for any amounts due
or to become due to the Security Trustee and the Receiver in the
following Interest Period under the Funding Deed of Charge or any
other Transaction Document;
(B) second, from amounts standing to the credit of the Funding Expense
Sub-Ledger in respect of such Payment Date, towards payment of
amounts due and payable to the Cash Manager and any costs, charges,
liabilities and expenses then due or to become due and payable to
the Cash Manager under the Cash Management Agreement, together with
(to the extent not already inclusive) VAT on those amounts;
(C) third, from amounts standing to the credit of the Funding Expense
Sub-Ledger in respect of such Payment Date, (in no order of
priority among them but in proportion to the respective amounts
due) towards payment of amounts (if any) due to the Account Bank
under the terms of the Bank Account
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Agreement and to the Corporate Services Provider under the
Corporate Services Agreement;
(D) fourth, (1) from Group 1 Available Revenue Receipts and Group 1
Available Principal Receipts in respect of each Payment Date for
Group 1 Issuers, (in no order of priority among them but in
proportion to the respective amounts due) to each Group 1 Issuer
its share of Issuer Allocable Revenue Receipts and Issuer Allocable
Principal Receipts towards payment of amounts of interest,
principal and fees due to such Group 1 Issuer under such Issuer's
Intercompany Loan Agreement, which in the case of that Issuer shall
be up to the aggregate amount of the amounts, and shall be applied
in the amounts and priorities, as set forth in the Issuer
Post-Enforcement Priority of Payments for that Issuer;
(2) from Group 2 Available Revenue Receipts and Group 2 Available
Principal Receipts in respect of each Payment Date for Group 2
Issuers (in no order of priority among them but in proportion to
the respective amounts due) to each Group 2 Issuer its Issuer
Allocable Revenue Receipts and Issuer Allocable Principal Receipts,
respectively, towards payment of amounts of interest, principal and
fees due to such Group 2 Issuer under such Issuer's Intercompany
Loan Agreement, which in the case of that Group 2 Issuer shall be
up to the aggregate of the amounts, and shall be applied in the
amounts and priorities, as set forth in the Issuer Post-Enforcement
Priority of Payments for that Issuer;
(E) fifth, (1) from Group 1 Available Revenue Receipts and Group 1
Available Principal Receipts in respect of each Payment Date for
Group 1 Issuers, towards payment of amounts due to each Issuer
Start-Up Loan Provider under the relevant Issuer Start-up Loan
Agreement for each Group 1 Issuer;
(2) from Group 2 Available Revenue Receipts and Group 2 Available
Principal Receipts in respect of each Payment Date for Group 2
Issuers, towards the payment of amounts due to each Issuer Start-up
Loan Provider under the relevant Issuer Start-up Loan Agreement for
each Group 2 Issuer;
(F) sixth, from any remaining Funding Available Revenue Receipts (being
the remaining Group 1 Available Revenue Receipts, the Group 1
Available Principal Receipts, the Group 2 Available Revenue
Receipts and the Group 2 Available Principal Receipts) in respect
of such Payment Date, towards payment of any Deferred Contribution
due to the Mortgages Trustee under the Mortgages Trust Deed; and
(G) last, to pay any amount remaining following the application of
principal and revenue set forth in paragraphs (A) through (F)
above, to Funding,
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PROVIDED THAT, to the extent that there is a shortfall in the amounts standing
to the credit of the Funding Expense Sub-Ledger, amounts payable under (A)
through (C) above may also be paid from Group 1 Available Revenue Receipts or
Group 2 Available Revenue Receipts as applicable to the relevant Payment Date.
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