STRUCTURED ASSET SECURITIES CORPORATION, as Depositor, AURORA LOAN SERVICES LLC, as Master Servicer, and U.S. BANK NATIONAL ASSOCIATION, as Trustee
EXECUTION
COPY
STRUCTURED
ASSET SECURITIES CORPORATION,
as
Depositor,
AURORA
LOAN SERVICES LLC,
as
Master
Servicer,
and
U.S.
BANK
NATIONAL ASSOCIATION,
as
Trustee
Dated
as
of July 1, 2007
XXXXXX
XS
TRUST
MORTGAGE
PASS-THROUGH CERTIFICATES,
SERIES
2007-15N
TABLE
OF
CONTENTS
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Page
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ARTICLE
I.
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DEFINITIONS
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38
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Section
1.01.
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Definitions
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38
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Section
1.02.
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Calculations
Respecting Mortgage Loans
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111
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Section
1.03.
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Calculations
Respecting Accrued Interest
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111
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Section
1.04.
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Rights
of the NIMS Insurer
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111
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ARTICLE
II.
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DECLARATION
OF TRUST; ISSUANCE OF CERTIFICATES
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112
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Section
2.01.
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Creation
and Declaration of Trust Fund; Conveyance of Mortgage
Loans
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112
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Section
2.02.
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Acceptance
of Trust Fund by Trustee: Review of Documentation for Trust
Fund
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116
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Section
2.03.
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Representations
and Warranties of the Depositor
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118
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Section
2.04.
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Discovery
of Breach
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120
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Section
2.05.
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Repurchase,
Purchase or Substitution of Mortgage Loans
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120
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Section
2.06.
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Grant
Clause
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122
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ARTICLE
III.
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THE
CERTIFICATES
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123
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Section
3.01.
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The
Certificates
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123
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Section
3.02.
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Registration
|
124
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Section
3.03.
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Transfer
and Exchange of Certificates
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124
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Section
3.04.
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Cancellation
of Certificates
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131
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Section
3.05.
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Replacement
of Certificates
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131
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Section
3.06.
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Persons
Deemed Owners
|
131
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Section
3.07.
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Temporary
Certificates
|
131
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Section
3.08.
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Appointment
of Paying Agent
|
132
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Section
3.09.
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Book
Entry Certificates
|
133
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Section
3.10.
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Deposit
of Underlying REMIC Certificates under the Exchange Trust
Agreement
|
134
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ARTICLE
IV.
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ADMINISTRATION
OF THE TRUST FUND
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134
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Section
4.01.
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Collection
Account
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134
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Section
4.02.
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Application
of Funds in the Collection Account
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136
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Section
4.03.
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Reports
to Certificateholders
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139
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Section
4.04.
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The
Certificate Account
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144
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i
TABLE
OF CONTENTS
(continued)
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Page
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ARTICLE
V.
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DISTRIBUTIONS
TO HOLDERS OF CERTIFICATES
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146
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Section
5.01.
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Distributions
Generally
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146
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Section
5.02.
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Distributions
from the Certificate Account.
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146
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Section
5.03.
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Allocation
of Losses
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170
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(a)
On each Distribution Date, the aggregate Class Principal Amount of
the
Certificates shall be reduced by the amount of any Pool 1-2 Applied
Loss
Amount for such date, in the following order of priority:
|
170
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Section
5.04.
|
Advances
by Master Servicer, Servicers and Trustee
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171
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Section
5.05.
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Compensating
Interest Payments
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173
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Section
5.06.
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Pool
1-2 Basis Risk Reserve Fund and Pool 3-4 Basis Risk Reserve
Fund
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173
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Section
5.07.
|
Supplemental
Interest Trust
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173
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Section
5.08.
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Rights
of Swap Counterparty
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174
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|
Section
5.09.
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Termination
Receipts
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174
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Section
5.10.
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Collateral
Account
|
175
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Section
5.11.
|
Class
AP-I, Class 3-AP and 4-AP Reserve Funds
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176
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Section
5.12.
|
Class
X-II Account and X-I Component Account
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176
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Section
5.13.
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The
Certificate Insurance Policy
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177
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ARTICLE
VI.
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CONCERNING
THE TRUSTEE; EVENTS OF DEFAULT
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180
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Section
6.01.
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Duties
of Trustee
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180
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Section
6.02.
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Certain
Matters Affecting the Trustee
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183
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Section
6.03.
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Trustee
Not Liable for Certificates
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184
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Section
6.04.
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Trustee
May Own Certificates
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185
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Section
6.05.
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Eligibility
Requirements for Trustee
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185
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Section
6.06.
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Resignation
and Removal of Trustee
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185
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Section
6.07.
|
Successor
Trustee
|
186
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Section
6.08.
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Merger
or Consolidation of Trustee
|
187
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Section
6.09.
|
Appointment
of Co-Trustee, Separate Trustee or Custodian
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187
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Section
6.10.
|
Authenticating
Agents
|
189
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Section
6.11.
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Indemnification
of Trustee
|
190
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ii
TABLE
OF CONTENTS
(continued)
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Page
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Section
6.12.
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Fees
and Expenses of Trustee and Custodian
|
191
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Section
6.13.
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Collection
of Monies
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191
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|
Section
6.14.
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Events
of Default; Trustee To Act; Appointment of Successor
|
191
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|
Section
6.15.
|
Additional
Remedies of Trustee Upon Event of Default
|
196
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|
Section
6.16.
|
Waiver
of Defaults
|
196
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|
Section
6.17.
|
Notification
to Holders
|
197
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|
Section
6.18.
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Directions
by Certificateholders and Duties of Trustee During Event of
Default
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197
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Section
6.19.
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Action
Upon Certain Failures of the Master Servicer and Upon Event of
Default
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197
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Section
6.20.
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Preparation
of Tax Returns and Other Reports
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198
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Section
6.21.
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Reporting
Requirements of the Commission
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205
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Section
6.22.
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Indemnification
by the Trustee
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205
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ARTICLE
VII.
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PURCHASE
OF MORTGAGE LOANS AND TERMINATION OF THE TRUST FUND
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205
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Section
7.01.
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Purchase
of Mortgage Loans; Termination of the Trust Fund Upon Purchase or
Liquidation of Mortgage Loans
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205
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Section
7.02.
|
Procedure
Upon Termination of Trust Fund
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208
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|
Section
7.03.
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Additional
Trust Fund Termination Requirements
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209
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|
Section
7.04.
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Optional
Purchase Right of NIMS Insurer
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210
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|
Section
7.05.
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Grantor
Trust Termination
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211
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ARTICLE
VIII.
|
RIGHTS
OF CERTIFICATEHOLDERS
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211
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Section
8.01.
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Limitation
on Rights of Holders
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211
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Section
8.02.
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Access
to List of Holders
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212
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Section
8.03.
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Acts
of Holders of Certificates
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212
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ARTICLE
IX.
|
ADMINISTRATION
AND SERVICING OF MORTGAGE LOANS BY THE MASTER SERVICER
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213
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Section
9.01.
|
Duties
of the Master Servicer
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213
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Section
9.02.
|
Master
Servicer Fidelity Bond and Master Servicer Errors and Omissions Insurance
Policy
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213
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Section
9.03.
|
Master
Servicer’s Financial Statements and Related Information
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214
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iii
TABLE
OF CONTENTS
(continued)
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Page
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Section
9.04.
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Power
to Act; Procedures
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214
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Section
9.05.
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Enforcement
of Servicers’ and Master Servicer’s Obligations
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216
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Section
9.06.
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Collection
of Taxes, Assessments and Similar Items
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217
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Section
9.07.
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Termination
of Servicing Agreements; Successor Servicers
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218
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Section
9.08.
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Master
Servicer Liable for Enforcement
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219
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Section
9.09.
|
No
Contractual Relationship Between the Servicer, Any NIMS Insurer and
Trustee or Depositor
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219
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Section
9.10.
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Assumption
of Servicing Agreement by the Trustee
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219
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|
Section
9.11.
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Due-on-Sale
Clauses; Assumption Agreements; Easements
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220
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Section
9.12.
|
Release
of Mortgage Files
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220
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|
Section
9.13.
|
Documents,
Records and Funds in Possession of Master Servicer To Be Held for
Trustee
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221
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|
Section
9.14.
|
Representations
and Warranties of the Master Servicer
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223
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Section
9.15.
|
Opinion
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225
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|
Section
9.16.
|
Standard
Hazard and Flood Insurance Policies
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225
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|
Section
9.17.
|
Presentment
of Claims and Collection of Proceeds
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226
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Section
9.18.
|
Maintenance
of the Primary Mortgage Insurance Policies
|
226
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|
Section
9.19.
|
Trustee
To Retain Possession of Certain Insurance Policies and
Documents
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227
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|
Section
9.20.
|
Realization
Upon Defaulted Mortgage Loans
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227
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|
Section
9.21.
|
Compensation
to the Master Servicer
|
228
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Section
9.22.
|
REO
Property
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228
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|
Section
9.23.
|
Notice
to the Sponsor, the Depositor and the Trustee
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229
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Section
9.24.
|
Reports
to the Trustee
|
230
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|
Section
9.25.
|
Assessment
of Compliance and Attestation Reports
|
230
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Section
9.26.
|
Annual
Statement of Compliance with Applicable Servicing Criteria
|
232
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|
Section
9.27.
|
Merger
or Consolidation
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232
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Section
9.28.
|
Resignation
of Master Servicer
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233
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|
Section
9.29.
|
Assignment
or Delegation of Duties by the Master Servicer
|
233
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Section
9.30.
|
Limitation
on Liability of the Master Servicer and Others
|
234
|
iv
TABLE
OF CONTENTS
(continued)
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Page
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||||
|
Section
9.31.
|
Indemnification;
Third Party Claims
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235
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|
Section
9.32.
|
Special
Servicing of Delinquent Mortgage Loans
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235
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||
|
Section
9.33.
|
Allocation
to Related Mortgage Pool
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236
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|
ARTICLE
X.
|
REMIC
ADMINISTRATION
|
236
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||
|
Section
10.01.
|
REMIC
Administration
|
236
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||
|
Section
10.02.
|
Prohibited
Transactions and Activities
|
271
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||
|
Section
10.03.
|
Indemnification
with Respect to Certain Taxes and Loss of REMIC Status
|
271
|
||
|
Section
10.04.
|
REO
Property
|
271
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||
|
ARTICLE
XI.
|
MISCELLANEOUS
PROVISIONS
|
272
|
||
|
Section
11.01.
|
Binding
Nature of Agreement; Assignment
|
272
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||
|
Section
11.02.
|
Entire
Agreement
|
272
|
||
|
Section
11.03.
|
Amendment
|
272
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||
|
Section
11.04.
|
Voting
Rights
|
274
|
||
|
Section
11.05.
|
Provision
of Information
|
274
|
||
|
Section
11.06.
|
Governing
Law
|
275
|
||
|
Section
11.07.
|
Notices
|
275
|
||
|
Section
11.08.
|
Severability
of Provisions
|
276
|
||
|
Section
11.09.
|
Indulgences;
No Waivers
|
276
|
||
|
Section
11.10.
|
Headings
Not To Affect Interpretation
|
276
|
||
|
Section
11.11.
|
Benefits
of Agreement
|
276
|
||
|
Section
11.12.
|
Special
Notices to the Rating Agencies, the Certificate Insurer, the Swap
Counterparty and NIMS Insurer
|
276
|
||
|
Section
11.13.
|
Conflicts
|
277
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||
|
Section
11.14.
|
Counterparts
|
278
|
||
|
Section
11.15.
|
Transfer
of Servicing
|
278
|
||
|
Section
11.16.
|
Third
Party Rights
|
279
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||
|
Section
11.17.
|
Matters
Relating to the Certificate Insurance Policy
|
280
|
v
ATTACHMENTS
|
Exhibit
A
|
Forms
of Certificates
|
|
Exhibit
B-1
|
Form
of Initial Certification
|
|
Exhibit
B-2
|
Form
of Interim Certification
|
|
Exhibit
B-3
|
Form
of Final Certification
|
|
Exhibit
B-4
|
Form
of Endorsement
|
|
Exhibit
C
|
Request
for Release of Documents and
Receipt
|
|
Exhibit
D-l
|
Form
of Residual Certificate Transfer Affidavit
(Transferee)
|
|
Exhibit
D-2
|
Form
of Residual Certificate Transfer Affidavit
(Transferor)
|
|
Exhibit
E
|
Servicing
Agreements
|
|
Exhibit
F
|
Form
of Rule 144A Transfer Certificate
|
|
Exhibit
G
|
Form
of Purchaser’s Letter for Institutional Accredited
Investors
|
|
Exhibit
H
|
Form
of ERISA Transfer Affidavit
|
|
Exhibit
I
|
[Reserved]
|
|
Exhibit
J
|
[Reserved]
|
|
Exhibit
K
|
Custodial
Agreements
|
|
Exhibit
L
|
Form
of Exchange Trust Agreement (including Available Combination
Schedule)
|
|
Exhibit
M
|
Form
of Ambac Certificate Insurance
Policy
|
|
Exhibit
N
|
Form
of Swap Agreement
|
|
Exhibit
O
|
Form
of Interest Rate Cap Agreement
|
|
Exhibit
P
|
Forms
of Deferred Interest Cap Agreements
|
|
Exhibit
Q-1
|
Additional
Form 10-D Disclosure
|
|
Exhibit
Q-2
|
Additional
Form 10-K Disclosure
|
|
Exhibit
Q-3
|
Additional
Form 8-K Disclosure
|
|
Exhibit
Q-4
|
Additional
Disclosure Notification
|
|
Exhibit
R
|
Servicing
Criteria to be Addressed in Report on Assessment of
Compliance
|
|
Exhibit
S
|
Transaction
Parties
|
|
Exhibit
T
|
Form
of Back-Up Xxxxxxxx-Xxxxx
Certification
|
|
Exhibit
U
|
Form
of Back-Up Xxxxxxxx-Xxxxx Certification to be Provided by the
Trustee
|
|
Schedule
A
|
Mortgage
Loan Schedule
|
|
Schedule
B
|
Swap
Agreement Scheduled Notional Amount and Rates of
Payment
|
|
Schedule
C
|
Early
Payment Default Mortgage Loans
|
|
Schedule
D
|
First
Payment Default Mortgage Loan
|
vi
This
TRUST AGREEMENT, dated as of July 1, 2007 (the “Agreement”), is by and among
STRUCTURED ASSET SECURITIES CORPORATION, a Delaware corporation, as depositor
(the “Depositor”), AURORA LOAN SERVICES LLC, as master servicer (the “Master
Servicer”), and U.S. BANK NATIONAL ASSOCIATION, a national banking association,
as trustee (the “Trustee”).
PRELIMINARY
STATEMENT
The
Depositor has acquired the Mortgage Loans from Xxxxxx Brothers Holdings Inc.
(the “Seller”), and at the Closing Date is the owner of the Mortgage Loans and
the other property being conveyed by it to the Trustee hereunder for inclusion
in the Trust Fund. On the Closing Date, the Depositor will acquire the
Certificates (other than any Underlying Interests) from the Trust Fund as
consideration for its transfer to the Trust Fund of the Mortgage Loans and
the
other property constituting the Trust Fund. The Depositor has duly authorized
the execution and delivery of this Agreement to provide for the conveyance
to
the Trustee of the Mortgage Loans and the other property constituting the Trust
Fund. All covenants and agreements made by the Seller in the Mortgage Loan
Sale
Agreement and by the Depositor, the Master Servicer and the Trustee herein
with
respect to the Mortgage Loans and the other property constituting the Trust
Fund
are for the benefit of the Holders from time to time of the Certificates and,
to
the extent provided herein, any NIMS Insurer and the Swap Counterparty. The
Depositor, the Trustee and the Master Servicer are entering into this Agreement,
and the Trustee is accepting the Trust Fund created hereby, for good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged.
As
provided herein, the Trustee shall elect that the Trust Fund (other than (i)
the
Pool 1-2 Basis Risk Reserve Fund and the Pool 3-4 Basis Risk Reserve Fund,
(ii)
the rights to receive Prepayment Premiums distributable to the Class P
Certificates and the Class P Reserve Funds, (iii) the X-I Component Account
and
Class X-II Account, (iv) the assets of the Grantor Trusts established pursuant
to Section 5.02(m), (v) the Interest Rate Cap Agreement and the Interest Rate
Cap Account, (vi) the Swap Agreement and the Supplemental Interest Trust, (vii)
the right to receive FPD Premiums and EPD Premiums and (viii) the Lower Tier
Interests) be treated for federal income tax purposes as comprising fifteen
real
estate mortgage investment conduits (each a “REMIC” or, in the alternative, the
“SWAP REMIC,” “REMIC I-1,” “REMIC I-2,” “REMIC II-AX,” “REMIC II-1,” “REMIC
II-2,” “REMIC II-3,” “REMIC II-4,” “REMIC II-5,” “REMIC II-6,” “REMIC II-7,”
“REMIC II-8,” “REMIC II-9,” “REMIC II-10”and “REMIC II-11”). Each Group I
Certificate and each Class X-I Certificate represents ownership of one or more
regular interests in REMIC I-2 for purposes of the REMIC Provisions. In
addition, (i) each Group I Certificate (other than the Class M8-I and Class
M9-I
Certificates) represents the right to receive payments with respect to Excess
Interest and (ii) each Group I Certificate represents the obligation to make
payments in respect of Class I-I Shortfalls. In
addition, the Class X-I Certificates represent the right to receive FPD Premiums
and EPD Premiums with respect to Pool 1, Pool 1C and Pool 2. Each
Group II Certificate (other than any Exchange Class or Exchangeable Class)
and
each Class X-II Certificate represents ownership of one or more regular
interests in REMIC II-11 for purposes of the REMIC Provisions. In addition,
(i)
each Group II Certificate (other than any Exchange Class or Exchangeable Class)
represents the right to receive payments with respect to Excess Interest and
the
obligation to make payments in respect of Class I-II Shortfalls.
The
Class R Certificate represents ownership of the sole Class of residual interest
in each REMIC for purposes of the REMIC Provisions. Each Grantor Trust
Certificate (other than any Exchange Class) represents a beneficial interest
in
a Grantor Trust holding the related Underlying Interest and certain other assets
for the benefit of the Grantor Trust Certificates. Each Exchange Class or
Exchangeable Class represents a beneficial interest in a grantor trust created
under the Exchange Trust Agreement holding the related Underlying REMIC
Certificates.
Mortgage
Group I REMICs
REMIC
I-2
shall hold as its assets the several Classes of uncertificated REMIC I-1 Regular
Interests and each such REMIC I-1 Regular Interest is hereby designated as
a
regular interest in REMIC I-1. REMIC I-1 shall hold as its assets the several
Classes of uncertificated SWAP REMIC Regular Interests and each such SWAP REMIC
Regular Interest is hereby designated as a regular interest in the SWAP REMIC.
The SWAP REMIC shall hold as its assets the property of the Trust Fund related
to Mortgage Group I other than (i) the Swap Agreement, (ii) the Supplemental
Interest Trust, (iii) the Interest Rate Cap Agreement and the Interest Rate
Cap
Account, (iv) the Pool 1-2 Basis Risk Reserve Fund, (v) the rights to receive
Prepayment Premiums distributable to the Class P Certificates and the Class
P
Reserve Funds, (vi) the X-I Component Account, (vii) the assets of the Grantor
Trusts established pursuant to Section 5.02(m), (viii) the Lower Tier Interests
and (ix) the right to receive FPD Premiums and EPD Premiums.
The
SWAP REMIC
The
following table sets forth (or describes) the Class designations, interest
rate
and initial principal amount for each Class of SWAP REMIC
Interests:
|
Class
Designation
|
Initial
Principal Balance
|
Interest
Rate
|
|||||
|
SW-Z
|
$
|
117,564,725.380
|
(1
|
)
|
|||
|
SW2A
|
$
|
16,770,628.500
|
(2
|
)
|
|||
|
SW2B
|
$
|
16,770,628.500
|
(3
|
)
|
|||
|
SW3A
|
$
|
16,217,705.000
|
(2
|
)
|
|||
|
SW3B
|
$
|
16,217,705.000
|
(3
|
)
|
|||
|
SW4A
|
$
|
15,683,152.000
|
(2
|
)
|
|||
|
SW4B
|
$
|
15,683,152.000
|
(3
|
)
|
|||
|
SW5A
|
$
|
15,166,354.000
|
(2
|
)
|
|||
|
SW5B
|
$
|
15,166,354.000
|
(3
|
)
|
|||
|
SW6A
|
$
|
14,666,718.000
|
(2
|
)
|
|||
|
SW6B
|
$
|
14,666,718.000
|
(3
|
)
|
|||
|
SW7A
|
$
|
14,183,670.000
|
(2
|
)
|
|||
|
SW7B
|
$
|
14,183,670.000
|
(3
|
)
|
|||
|
SW8A
|
$
|
13,716,654.500
|
(2
|
)
|
|||
|
SW8B
|
$
|
13,716,654.500
|
(3
|
)
|
|||
-1-
|
Class
Designation
|
Initial
Principal Balance
|
Interest
Rate
|
|||||
|
SW9A
|
$
|
13,265,136.000
|
(2
|
)
|
|||
|
SW9B
|
$
|
13,265,136.000
|
(3
|
)
|
|||
|
SW10A
|
$
|
12,828,596.500
|
(2
|
)
|
|||
|
SW10B
|
$
|
12,828,596.500
|
(3
|
)
|
|||
|
SW11A
|
$
|
12,406,535.000
|
(2
|
)
|
|||
|
SW11B
|
$
|
12,406,535.000
|
(3
|
)
|
|||
|
SW12A
|
$
|
11,998,468.500
|
(2
|
)
|
|||
|
SW12B
|
$
|
11,998,468.500
|
(3
|
)
|
|||
|
SW13A
|
$
|
13,892,803.000
|
(2
|
)
|
|||
|
SW13B
|
$
|
13,892,803.000
|
(3
|
)
|
|||
|
SW14A
|
$
|
13,347,404.000
|
(2
|
)
|
|||
|
SW14B
|
$
|
13,347,404.000
|
(3
|
)
|
|||
|
SW15A
|
$
|
12,823,533.500
|
(2
|
)
|
|||
|
SW15B
|
$
|
12,823,533.500
|
(3
|
)
|
|||
|
SW16A
|
$
|
12,320,337.500
|
(2
|
)
|
|||
|
SW16B
|
$
|
12,320,337.500
|
(3
|
)
|
|||
|
SW17A
|
$
|
11,836,995.000
|
(2
|
)
|
|||
|
SW17B
|
$
|
11,836,995.000
|
(3
|
)
|
|||
|
SW18A
|
$
|
11,372,720.000
|
(2
|
)
|
|||
|
SW18B
|
$
|
11,372,720.000
|
(3
|
)
|
|||
|
SW19A
|
$
|
10,926,755.000
|
(2
|
)
|
|||
|
SW19B
|
$
|
10,926,755.000
|
(3
|
)
|
|||
|
SW20A
|
$
|
10,498,375.000
|
(2
|
)
|
|||
|
SW20B
|
$
|
10,498,375.000
|
(3
|
)
|
|||
|
SW21A
|
$
|
10,086,881.500
|
(2
|
)
|
|||
|
SW21B
|
$
|
10,086,881.500
|
(3
|
)
|
|||
|
SW22A
|
$
|
9,691,607.500
|
(2
|
)
|
|||
|
SW22B
|
$
|
9,691,607.500
|
(3
|
)
|
|||
|
SW23A
|
$
|
9,311,908.500
|
(2
|
)
|
|||
|
SW23B
|
$
|
9,311,908.500
|
(3
|
)
|
|||
|
SW24A
|
$
|
8,947,168.000
|
(2
|
)
|
|||
|
SW24B
|
$
|
8,947,168.000
|
(3
|
)
|
|||
|
SW25A
|
$
|
10,130,488.000
|
(2
|
)
|
|||
|
SW25B
|
$
|
10,130,488.000
|
(3
|
)
|
|||
|
SW26A
|
$
|
9,664,696.500
|
(2
|
)
|
|||
|
SW26B
|
$
|
9,664,696.500
|
(3
|
)
|
|||
|
SW27A
|
$
|
9,220,614.500
|
(2
|
)
|
|||
|
SW27B
|
$
|
9,220,614.500
|
(3
|
)
|
|||
|
SW28A
|
$
|
8,797,595.500
|
(2
|
)
|
|||
|
SW28B
|
$
|
8,797,595.500
|
(3
|
)
|
|||
|
SW29A
|
$
|
8,392,651.500
|
(2
|
)
|
|||
|
SW29B
|
$
|
8,392,651.500
|
(3
|
)
|
-2-
|
Class
Designation
|
Initial
Principal Balance
|
Interest
Rate
|
|||||
|
SW30A
|
$
|
8,006,239.500
|
(2
|
)
|
|||
|
SW30B
|
$
|
8,006,239.500
|
(3
|
)
|
|||
|
SW31A
|
$
|
7,638,859.000
|
(2
|
)
|
|||
|
SW31B
|
$
|
7,638,859.000
|
(3
|
)
|
|||
|
SW32A
|
$
|
7,289,543.000
|
(2
|
)
|
|||
|
SW32B
|
$
|
7,289,543.000
|
(3
|
)
|
|||
|
SW33A
|
$
|
7,029,811.500
|
(2
|
)
|
|||
|
SW33B
|
$
|
7,029,811.500
|
(3
|
)
|
|||
|
SW34A
|
$
|
6,635,342.500
|
(2
|
)
|
|||
|
SW34B
|
$
|
6,635,342.500
|
(3
|
)
|
|||
|
SW35A
|
$
|
6,745,517.500
|
(2
|
)
|
|||
|
SW35B
|
$
|
6,745,517.500
|
(3
|
)
|
|||
|
SW36A
|
$
|
28,358,801.500
|
(2
|
)
|
|||
|
SW36B
|
$
|
28,358,801.500
|
(3
|
)
|
|||
|
SW37A
|
$
|
4,709,813.000
|
(2
|
)
|
|||
|
SW37B
|
$
|
4,709,813.000
|
(3
|
)
|
|||
|
SW38A
|
$
|
4,495,946.000
|
(2
|
)
|
|||
|
SW38B
|
$
|
4,495,946.000
|
(3
|
)
|
|||
|
SW39A
|
$
|
4,291,756.000
|
(2
|
)
|
|||
|
SW39B
|
$
|
4,291,756.000
|
(3
|
)
|
|||
|
SW40A
|
$
|
4,098,576.000
|
(2
|
)
|
|||
|
SW40B
|
$
|
4,098,576.000
|
(3
|
)
|
|||
|
SW41A
|
$
|
3,911,556.000
|
(2
|
)
|
|||
|
SW41B
|
$
|
3,911,556.000
|
(3
|
)
|
|||
|
SW42A
|
$
|
3,731,889.500
|
(2
|
)
|
|||
|
SW42B
|
$
|
3,731,889.500
|
(3
|
)
|
|||
|
SW43A
|
$
|
3,561,069.500
|
(2
|
)
|
|||
|
SW43B
|
$
|
3,561,069.500
|
(3
|
)
|
|||
|
SW44A
|
$
|
3,398,404.500
|
(2
|
)
|
|||
|
SW44B
|
$
|
3,398,404.500
|
(3
|
)
|
|||
|
SW45A
|
$
|
3,242,630.000
|
(2
|
)
|
|||
|
SW45B
|
$
|
3,242,630.000
|
(3
|
)
|
|||
|
SW46A
|
$
|
3,093,964.000
|
(2
|
)
|
|||
|
SW46B
|
$
|
3,093,964.000
|
(3
|
)
|
|||
|
SW47A
|
$
|
2,952,619.500
|
(2
|
)
|
|||
|
SW47B
|
$
|
2,952,619.500
|
(3
|
)
|
|||
|
SW48A
|
$
|
2,817,624.000
|
(2
|
)
|
|||
|
SW48B
|
$
|
2,817,624.000
|
(3
|
)
|
|||
|
SW49A
|
$
|
2,699,788.000
|
(2
|
)
|
|||
|
SW49B
|
$
|
2,699,788.000
|
(3
|
)
|
|||
|
SW50A
|
$
|
2,594,057.500
|
(2
|
)
|
|||
|
SW50B
|
$
|
2,594,057.500
|
(3
|
)
|
-3-
|
Class
Designation
|
Initial
Principal Balance
|
Interest
Rate
|
|||||
|
SW51A
|
$
|
2,564,670.500
|
(2
|
)
|
|||
|
SW51B
|
$
|
2,564,670.500
|
(3
|
)
|
|||
|
SW52A
|
$
|
2,460,814.500
|
(2
|
)
|
|||
|
SW52B
|
$
|
2,460,814.500
|
(3
|
)
|
|||
|
SW53A
|
$
|
35,349,117.500
|
(2
|
)
|
|||
|
SW53B
|
$
|
35,349,117.500
|
(3
|
)
|
|||
|
SW54A
|
$
|
608,142.000
|
(2
|
)
|
|||
|
SW54B
|
$
|
608,142.000
|
(3
|
)
|
|||
|
SW55A
|
$
|
623,688.500
|
(2
|
)
|
|||
|
SW55B
|
$
|
623,688.500
|
(3
|
)
|
|||
|
SW56A
|
$
|
643,890.500
|
(2
|
)
|
|||
|
SW56B
|
$
|
643,890.500
|
(3
|
)
|
|||
|
SW57A
|
$
|
725,281.500
|
(2
|
)
|
|||
|
SW57B
|
$
|
725,281.500
|
(3
|
)
|
|||
|
SW58A
|
$
|
805,927.500
|
(2
|
)
|
|||
|
SW58B
|
$
|
805,927.500
|
(3
|
)
|
|||
|
SW59A
|
$
|
8,204,289.000
|
(2
|
)
|
|||
|
SW59B
|
$
|
8,204,289.000
|
(3
|
)
|
|||
|
SW60A
|
$
|
1,345,351.000
|
(2
|
)
|
|||
|
SW60B
|
$
|
1,345,351.000
|
(3
|
)
|
|||
|
SW-R
|
(4
|
)
|
(4
|
)
|
| (1) |
The
interest rate on the Class SW-Z Interest shall be a per annum rate
equal
to the Pool 1-2 Net WAC.
|
| (2) |
For
any Distribution Date, the interest rate on each SWAP REMIC Regular
Interest ending with the designation “A” shall be a per annum rate equal
to 2 times the Pool 1-2 Net WAC, subject to a maximum rate of 2 times
the
REMIC Swap Rate for such Distribution
Date.
|
| (3) |
For
any Distribution Date, the interest rate on each SWAP REMIC Regular
Interest ending with the designation “B” shall be a per annum rate equal
to the greater of (x) the excess, if any, of (i) 2 times the Pool
1-2 Net
WAC over (ii) 2 times the REMIC Swap Rate for such Distribution Date
and
(y) 0.00%.
|
| (4) |
The
Class SW-R Interest shall have no principal amount and shall bear no
interest. It shall be represented by the Class R
Certificate.
|
-4-
REMIC
I-1
The
following table sets forth (or describes) the Class designation, interest rate,
and initial principal amount for each Class of REMIC I-1 Interests.
|
Class
Designation
|
Interest
Rate
|
Initial
Class Principal Amount
|
Corresponding
Class of Certificates
|
|||
|
LTI1-1A1
|
(1)
|
(2)
|
1-A1
|
|||
|
LTI1-1A2
|
(1)
|
(2)
|
1-A2
|
|||
|
LTI1-1A3
|
(1)
|
(2)
|
1-A3
|
|||
|
LTI1-1CA1
|
(1)
|
(2)
|
1C-A1
|
|||
|
LTI1-1CA2
|
(1)
|
(2)
|
1C-A2
|
|||
|
LTI1-1CA3
|
(1)
|
(2)
|
1C-A3
|
|||
|
LTI1-2A1
|
(1)
|
(2)
|
2-A1
|
|||
|
LTI1-2A2
|
(1)
|
(2)
|
2-A2
|
|||
|
LTI1-2A3
|
(1)
|
(2)
|
2-A3
|
|||
|
LTI1-M1I
|
(1)
|
(2)
|
M1-I
|
|||
|
LTI1-M2I
|
(1)
|
(2)
|
M2-I
|
|||
|
LTI1-M3I
|
(1)
|
(2)
|
M3-I
|
|||
|
LTI1-M4I
|
(1)
|
(2)
|
M4-I
|
|||
|
LTI1-M5I
|
(1)
|
(2)
|
M5-I
|
|||
|
LTI1-M6I
|
(1)
|
(2)
|
M6-I
|
|||
|
LTI1-M7I
|
(1)
|
(2)
|
M7-I
|
|||
|
LTI1-M8I
|
(1)
|
(2)
|
M8-I
|
|||
|
LTI1-M9I
|
(1)
|
(2)
|
M9-I
|
|||
|
LTI1-X
|
(1)
|
(3)
|
N/A
|
|||
|
LTI1-IO
|
(4)
|
(4)
|
N/A
|
|||
|
LTI1-R
|
(5)
|
(5)
|
N/A
|
| (1) |
The
interest rate with respect to any Distribution Date (and the related
Accrual Period) for each of these REMIC I-1 Interests is a per annum
rate
equal to the weighted average of the interest rates on the SWAP REMIC
Regular Interests for such Distribution Date, provided however, that
for
any Distribution Date on which the Class LTI1-IO Interest is entitled
to a
portion of interest accruals on a SWAP REMIC Regular Interest ending
with
a designation “A” as described in footnote 4 below, such weighted average
shall be computed by first subjecting the rate on such SWAP REMIC
Regular
Interest to a cap equal to Swap LIBOR for such Distribution
Date.
|
| (2) |
The
initial principal amount for each of these REMIC I-1 Interests equals
50%
of the initial principal amount of the Corresponding Class of
Certificates.
|
| (3) |
This
interest shall have an initial principal balance equal to the excess
of
(i) the aggregate Cut-off Date Balance for Mortgage Group I over
(ii) the
aggregate initial principal balance of the REMIC I-1 Marker
Classes.
|
| (4) |
The
Class LTI1-IO Interest is an interest-only class that does not have
a
principal balance. For only those Distribution Dates listed in the
first
column of the table below, the Class LTI1-IO shall be entitled to
interest
accrued on the SWAP REMIC Regular Interest listed in the second column
below at a per annum rate equal to the excess, if any, of (i) the
interest
rate for such SWAP REMIC Regular Interest for such Distribution Date
over
(ii) Swap LIBOR for such Distribution
Date.
|
-5-
|
Distribution
Date
|
SWAP
REMIC Regular Interest
|
|
|
2
|
Class
SW2A
|
|
|
2-3
|
Class
SW3A
|
|
|
2-4
|
Class
SW4A
|
|
|
2-5
|
Class
SW5A
|
|
|
2-6
|
Class
SW6A
|
|
|
2-7
|
Class
SW7A
|
|
|
2-8
|
Class
SW8A
|
|
|
2-9
|
Class
SW9A
|
|
|
2-10
|
Class
SW10A
|
|
|
2-11
|
Class
SW11A
|
|
|
2-12
|
Class
SW12A
|
|
|
2-13
|
Class
SW13A
|
|
|
2-14
|
Class
SW14A
|
|
|
2-15
|
Class
SW15A
|
|
|
2-16
|
Class
SW16A
|
|
|
2-17
|
Class
SW17A
|
|
|
2-18
|
Class
SW18A
|
|
|
2-19
|
Class
SW19A
|
|
|
2-20
|
Class
SW20A
|
|
|
2-21
|
Class
SW21A
|
|
|
2-22
|
Class
SW22A
|
|
|
2-23
|
Class
SW23A
|
|
|
2-24
|
Class
SW24A
|
|
|
2-25
|
Class
SW25A
|
|
|
2-26
|
Class
SW26A
|
|
|
2-27
|
Class
SW27A
|
|
|
2-28
|
Class
SW28A
|
|
|
2-29
|
Class
SW29A
|
|
|
2-30
|
Class
SW30A
|
|
|
2-31
|
Class
SW31A
|
|
|
2-32
|
Class
SW32A
|
|
|
2-33
|
Class
SW33A
|
|
|
2-34
|
Class
SW34A
|
|
|
2-35
|
Class
SW35A
|
|
|
2-36
|
Class
SW36A
|
|
|
2-37
|
Class
SW37A
|
|
|
2-38
|
Class
SW38A
|
|
|
2-39
|
Class
SW39A
|
|
|
2-40
|
Class
SW40A
|
|
|
2-41
|
Class
SW41A
|
|
|
2-42
|
Class
SW42A
|
|
|
2-43
|
Class
SW43A
|
|
|
2-44
|
Class
SW44A
|
|
|
2-45
|
Class
SW45A
|
|
|
2-46
|
Class
SW46A
|
-6-
|
2-47
|
Class
SW47A
|
|
|
2-48
|
Class
SW48A
|
|
|
2-49
|
Class
SW49A
|
|
|
2-50
|
Class
SW50A
|
|
|
2-51
|
Class
SW51A
|
|
|
2-52
|
Class
SW52A
|
|
|
2-53
|
Class
SW53A
|
|
|
2-54
|
Class
SW54A
|
|
|
2-55
|
Class
SW55A
|
|
|
2-56
|
Class
SW56A
|
|
|
2-57
|
Class
SW57A
|
|
|
2-58
|
Class
SW58A
|
|
|
2-59
|
Class
SW59A
|
|
|
2-60
|
Class
SW60A
|
(5) The
Class
LTI1-R Interest is the sole Class of residual interest in REMIC I-1. It does
not
have an interest rate or a principal balance. It shall be represented by the
Class R Certificate.
REMIC
I-2
The
following table sets forth (or describes) the Class designation, interest rate,
and initial principal amount for each Class of REMIC I-2 Interests.
|
Class
Designation
|
Interest
Rate
|
Initial
Class Principal Amount
|
Class
of Related Certificates
|
|||
|
LTI2-1A1
|
(1)
|
(2)
|
1-A1
|
|||
|
LTI2-1A2
|
(1)
|
(2)
|
1-A2
|
|||
|
LTI2-1A3
|
(1)
|
(2)
|
1-A3
|
|||
|
LTI2-1CA1
|
(1)
|
(2)
|
1C-A1
|
|||
|
LTI2-1CA2
|
(1)
|
(2)
|
1C-A2
|
|||
|
LTI2-1CA3
|
(1)
|
(2)
|
1C-A3
|
|||
|
LTI2-2A1
|
(1)
|
(2)
|
2-A1
|
|||
|
LTI2-2A2
|
(1)
|
(2)
|
2-A2
|
|||
|
LTI2-2A3
|
(1)
|
(2)
|
2-A3
|
|||
|
LTI2-M1I
|
(1)
|
(2)
|
M1-I
|
|||
|
LTI2-M2I
|
(1)
|
(2)
|
M2-I
|
|||
|
LTI2-M3I
|
(1)
|
(2)
|
M3-I
|
|||
|
LTI2-M4I
|
(1)
|
(2)
|
M4-I
|
|||
|
LTI2-M5I
|
(1)
|
(2)
|
M5-I
|
|||
|
LTI2-M6I
|
(1)
|
(2)
|
M6-I
|
|||
|
LTI2-M7I
|
(1)
|
(2)
|
M7-I
|
|||
|
LTI2-M8I
|
(1)
|
(2)
|
M8-I
|
|||
|
LTI2-M9I
|
(1)
|
(2)
|
M9-I
|
|||
|
Uncertificated
Class X-I Interest
|
(3)
|
(3)
|
N/A
|
|||
|
LTI2-IO
|
(4)
|
(4)
|
N/A
|
|||
|
Residual
I Interest
|
(5)
|
(5)
|
N/A
|
| (1) |
The
interest rate with respect to any Distribution Date (and the related
Accrual Period) for each of these REMIC I-2 Interests is a per annum
rate
equal to the Certificate Interest Rate for the Related Certificates,
provided that in lieu of the applicable Net Funds Cap set forth in
the
applicable Certificate Interest Rate, the Pool 1-2 Net Rate (as adjusted,
in the case of any such REMIC I-2 Interest the Class of Related
Certificates of which accrues interest on the basis of a 360-day
year
consisting of twelve 30-day months, to reflect accruals on such basis)
shall be used.
|
-7-
| (2) |
The
initial principal balance for each of these REMIC I-2 Interests shall
equal the initial principal balance of the Related
Certificates.
|
| (3) |
The
Uncertificated Class X-I Interest shall have an initial principal
balance
equal to the excess of the Cut-off Date Balance of Mortgage Group
I over
the aggregate initial Certificate Principal Amounts of the Group
I
Certificates. The Uncertificated Class X-I Interest shall accrue
interest
on a notional balance equal to the X-I Component Notional Balance
at a
rate equal to the X-I Component Interest Rate. The Uncertificated
Class
X-I Interest shall be represented by the Class X-I
Certificates.
|
| (4) |
The
Class LTI2-IO Interest shall have no principal amount and will not
have an
interest rate, but will be entitled to 100% of the interest accrued
with
respect to the Class LTI1-IO Interest. The Class LTI2-IO Interest
shall be
represented by the Class X-I
Certificates.
|
| (5) |
The
Residual I Interest is the sole Class of residual interest in REMIC
I-2.
It does not have an interest rate or a principal balance. It shall
be
represented by the Class R
Certificate.
|
All
calculations of interest on each regular interest in the SWAP REMIC, REMIC
I-1
and REMIC I-2 will be made on an “actual/360” basis.
-8-
Mortgage
Group II REMICs
REMIC
II-11 shall hold as its assets the several Classes of uncertificated REMIC
II-10
Regular Interests and each such REMIC II-10 Regular Interest is hereby
designated as a regular interest in REMIC II-10. REMIC II-10 shall hold as
its
assets the several Classes of uncertificated REMIC II-9 Regular Interests and
each such REMIC II-9 Regular Interest is hereby designated as a regular interest
in REMIC II-9. REMIC II-9 shall hold as its assets the several Classes of
uncertificated REMIC II-8 Regular Interests and each such REMIC II-8 Regular
Interest is hereby designated as a regular interest in REMIC II-8. REMIC II-8
shall hold as its assets the several Classes of uncertificated REMIC II-7
Regular Interests and each such REMIC II-7 Regular Interest is hereby designated
as a regular interest in REMIC II-7. REMIC II-7 shall hold as its assets the
several Classes of uncertificated REMIC II-6 Regular Interests and each such
REMIC II-6 Regular Interest is hereby designated as a regular interest in REMIC
II-6. REMIC II-6 shall hold as its assets the several Classes of uncertificated
REMIC II-5 Regular Interests and each such REMIC II-5 Regular Interest is hereby
designated as a regular interest in REMIC II-5. REMIC II-5 shall hold as its
assets the several Classes of uncertificated REMIC II-4 Regular Interests and
each such REMIC II-4 Regular Interest is hereby designated as a regular interest
in REMIC II-4. REMIC II-4 shall hold as its assets the several Classes of
uncertificated REMIC II-3 Regular Interests and each such REMIC II-3 Regular
Interest is hereby designated as a regular interest in REMIC II-3. REMIC II-3
shall hold as its assets the several Classes of uncertificated REMIC II-2
Regular Interests and each such REMIC II-2 Regular Interest is hereby designated
as a regular interest in REMIC II-2. REMIC II-2 shall hold as its assets the
several Classes of uncertificated REMIC II-1 Regular Interests and each such
REMIC II-1 Regular Interest is hereby designated as a regular interest in REMIC
II-1. REMIC II-1 shall hold as its assets the several Classes of uncertificated
REMIC II-AX Regular Interests and each such REMIC II-AX Regular Interest is
hereby designated as a regular interest in REMIC II-AX. REMIC II-AX shall hold
as its assets the property of the Trust Fund related to Mortgage Group II other
than (i) the Pool 3-4 Basis Risk Reserve Fund, (v) the rights to receive
Prepayment Premiums distributable to the Class P Certificates and the Class
P
Reserve Funds, (vi) the X-I Component Account, (vii) the assets of the Grantor
Trusts established pursuant to Section 5.02(m), (viii) the Lower Tier Interests
and (ix) the right to receive FPD Premiums and EPD Premiums.
REMIC
II-AX
The
following table sets forth (or describes) the Class designation, interest rate,
and initial principal amount for each Class of REMIC II-AX Interests.
|
Class
|
Initial
Class
|
Related
|
||||
|
Designation
|
Interest
Rate
|
Principal
Amount
|
Mortgage
Pool
|
|||
|
LTIIAX-40%3AX
|
(1)
|
(3)
|
Pool
3
|
|||
|
LTIIAX-10%3AX
|
(1)
|
(4)
|
Pool
3
|
|||
|
LTIIAX-3Z
|
(1)
|
(5)
|
Pool
3
|
|||
|
LTIIAX-40%4AX
|
(2)
|
(6)
|
Pool
4
|
|||
|
LTIIAX-10%4AX
|
(2)
|
(7)
|
Pool
4
|
|||
|
LTIIAX-4Z
|
(2)
|
(5)
|
Pool
4
|
|||
|
LTIIAX-R
|
(8)
|
(8)
|
N/A
|
|
(1)
|
The
interest rate with respect to any Distribution Date (and the related
Accrual Period) for each of these REMIC II-AX Interests is a per
annum
rate equal to the Pool 3 Net WAC for such Distribution Date. Each
of these
REMIC II-AX Interests shall accrue interest on a “30/360”
basis.
|
-9-
|
(2)
|
The
interest rate with respect to any Distribution Date (and the related
Accrual Period) for each of these REMIC II-AX Interests is a per
annum
rate equal to the Pool 4 Net WAC for such Distribution Date. Each
of these
REMIC II-AX Interests shall accrue interest on a “30/360”
basis.
|
|
(3)
|
The
initial principal amount for this REMIC II-AX Interest shall equal
40% of
the aggregate initial principal amount of the Class 3-A1 and Class
3-A2
Certificates.
|
|
(4)
|
The
initial principal amount for this REMIC II-AX Interest shall equal
10% of
the aggregate initial principal amount of the Class 3-A1 and Class
3-A2
Certificates.
|
|
(5)
|
The
initial principal amount for each of these REMIC II-AX Interests
shall
equal the excess of (i) the Pool Balance of the related Mortgage
Pool as
of the Cut-off Date over (ii) the initial principal amount of the
REMIC
II-AX Interests with the designation ending with “X” that is related to
the same Mortgage Pool.
|
|
(6)
|
The
initial principal amount for this REMIC II-AX Interest shall equal
40% of
the aggregate initial principal amount of the Pool 4 Senior
Certificates.
|
|
(7)
|
The
initial principal amount for this REMIC II-AX Interest shall equal
10% of
the aggregate initial principal amount of the Pool 4 Senior
Certificates.
|
|
(8)
|
The
Class LTIIAX-R Interest is the sole Class of residual interest in
REMIC
II-AX. It does not have an interest rate or a principal balance.
The Class
LTIIAX-R Interest shall be represented by the Class R
Certificates.
|
REMIC
II-1
The
following table sets forth (or describes) the Class designation, interest rate,
and initial principal amount for each Class of REMIC II-1
Interests.
|
Initial
|
Related
|
Corresponding
|
||||||
|
Class
|
Interest
|
Class
Principal
|
Mortgage
Pool or
|
Class
of
|
||||
|
Designation
|
Rate
|
Amount
|
Senior
Certificates
|
Certificates
|
||||
|
LTII1-3A1
|
(1)
|
(6)
|
N/A
|
3-A1
|
||||
|
LTII1-3A2
|
(1)
|
(6)
|
N/A
|
3-A2
|
||||
|
LTII1-4A1
|
(1)
|
(6)
|
N/A
|
4-A1
Underlying Interest
|
||||
|
LTII1-4A2A
|
(1)
|
(6)
|
N/A
|
4-A2A
Underlying Interest
|
||||
|
LTII1-4A2B
|
(1)
|
(6)
|
N/A
|
4-A2B
Underlying Interest
|
||||
|
LTII1-4A3
|
(1)
|
(6)
|
N/A
|
4-A3
Underlying Interest
|
-10-
|
Initial
|
Related
|
Corresponding
|
||||||
|
Class
|
Interest
|
Class
Principal
|
Mortgage
Pool or
|
Class
of
|
||||
|
Designation
|
Rate
|
Amount
|
Senior
Certificates
|
Certificates
|
|
LTII1-M1II
|
(1)
|
(6)
|
N/A
|
M1-II
|
||||
|
LTII1-M2II
|
(1)
|
(6)
|
N/A
|
M2-II
|
||||
|
LTII1-M3II
|
(1)
|
(6)
|
N/A
|
M3-II
|
||||
|
LTII1-M4II
|
(1)
|
(6)
|
N/A
|
M4-II
|
||||
|
LTII1-M5II
|
(1)
|
(6)
|
N/A
|
M5-II
|
||||
|
LTII1-M6II
|
(1)
|
(6)
|
N/A
|
M6-II
|
||||
|
LTII1-M7II
|
(1)
|
(6)
|
N/A
|
M7-II
|
||||
|
LTII1-M8II
|
(1)
|
(6)
|
N/A
|
M8-II
|
||||
|
LTII1-M9II
|
(1)
|
(6)
|
N/A
|
M9-II
|
||||
|
LTII1-XI
|
(1)
|
(7)
|
N/A
|
N/A
|
||||
|
LTII1-IIIA
|
(1)
|
(8)
|
Pool
3/
Pool
3 Senior Certificates
|
N/A
|
||||
|
LTII1-IIIB
|
(2)
|
(9)
|
Pool
3/
Pool
3 Senior Certificates
|
N/A
|
||||
|
LTII1-IVA
|
(1)
|
(10)
|
Pool
4/
Pool
4 Senior Certificates
|
N/A
|
||||
|
LTII1-IVB
|
(3)
|
(11)
|
Pool
4/
Pool
4 Senior Certificates
|
N/A
|
||||
|
LTII1-XII
|
(1)
|
(12)
|
N/A
|
N/A
|
||||
|
LTII1-3AX
|
(4)
|
(4)
|
N/A
|
N/A
|
||||
|
LTII1-4AX
|
(5)
|
(5)
|
N/A
|
N/A
|
||||
|
LTII1-R
|
(13)
|
(13)
|
N/A
|
N/A
|
|
(1)
|
The
interest rate with respect to any Distribution Date (and the
related
Accrual Period) for each of these REMIC II-1 Interests is a per
annum rate
equal to the Mortgage Group II Net Rate which, for purposes of
the REMIC
Provisions, shall be the equivalent of the weighted average of
the
interest rates on each of the REMIC AX Regular Interests multiplied
by 30
and divided by the actual number of days in the related Accrual
Period;
provided however, such weighted average shall be computed by
first (i)
capping the rate on the Class LTIIAX-40%3AX Interest and Class
LTIIAX-10%3AX Interest at the product of (x) LIBOR plus 0.31%
(for each
Distribution Date through the Pool 3-4 Initial Optional Termination
Date)
or LIBOR plus 0.62% (for each such Distribution Date after the
Pool 3-4
Initial Optional Termination Date) and (y) a fraction the numerator
of
which is the actual number of days in the related Accrual Period
and the
denominator of which is 30 and (ii) capping the rate on the Class
LTIIAX-40%4AX Interest and Class LTIIAX-10%4AX Interest at the
product of
(x) LIBOR plus 0.83% (for each Distribution Date through the
Pool 3-4
Initial Optional Termination Date) or LIBOR plus 1.66% (for each
such
Distribution Date after the Pool 3-4 Initial Optional Termination
Date)
and (y) a fraction the numerator of which is the actual number
of days in
the related Accrual Period and the denominator of which is
30.
|
|
(2)
|
The
interest rate with respect to any Distribution Date (and the
related
Accrual Period) for the Class LTII1-IIIB Interest is a per annum
rate
equal to the Pool 3 Senior REMIC Cap which, for purposes of the
REMIC
Provisions, shall be the equivalent of the weighted average of
the
interest rates on the Class LTIIAX-40%3AX, Class LTIIAX-10%3AX
and Class
LTIIAX-3Z Interests; provided however, such weighted average
shall be
computed by first capping the rate on the Class LTIIAX-40%3AX
Interest and
Class LTIIAX-10%3AX Interest at the product of (x) LIBOR plus
0.31% (for
each Distribution Date through the Pool 3-4 Initial Optional
Termination
Date) or LIBOR plus 0.62% (for each such Distribution Date after
the Pool
3-4 Initial Optional Termination Date) and (y) a fraction the
numerator of
which is the actual number of days in the related Accrual Period
and the
denominator of which is 30.
|
-11-
| (3) |
The
interest rate with respect to any Distribution Date (and the related
Accrual Period) for the Class LTII1-IVB Interest is a per annum rate
equal
to the Pool 4 Senior REMIC Cap which, for purposes of the REMIC
Provisions, shall be the equivalent of the weighted average of the
interest rates on the Class LTIIAX-40%4AX, Class LTIIAX-10%4AX and
Class
LTIIAX-4Z Interests; provided however, such weighted average shall
be
computed by first capping the rate on the Class LTIIAX-40%4AX Interest
and
Class LTIIAX-10%4AX Interest at the product of (x) LIBOR plus 0.83%
(for
each Distribution Date through the Pool 3-4 Initial Optional Termination
Date) or LIBOR plus 1.66% (for each such Distribution Date after
the Pool
3-4 Initial Optional Termination Date) and (y) a fraction the numerator
of
which is the actual number of days in the related Accrual Period
and the
denominator of which is 30.
|
| (4) |
The
Class LTII1-3AX Interest shall not be entitled to principal and shall
be
entitled to interest on each Distribution Date in an amount equal
to the a
“specified portion” of the interest accrued on (i) the Class LTIIAX-40%3AX
Interest for each Distribution Date through the Distribution Date
in July
2009, and (ii) the Class LTIIAX-10%3AX Interest for each Distribution
Date, with such specified portion being equal to all interest accrued
thereon in excess of the interest thereon at a variable rate. Such
variable rate shall equal the product of (x) LIBOR plus 0.31% (for
each
such Distribution Date through the Pool 3-4 Initial Optional Termination
Date) or LIBOR plus 0.62% (for each such Distribution Date after
the Pool
3-4 Initial Optional Termination Date) and (y) a fraction the numerator
of
which is the actual number of days in the related Accrual Period
and the
denominator of which is 30.
|
| (5) |
The
Class LTII1-4AX Interest shall not be entitled to principal and shall
be
entitled to interest on each Distribution Date in an amount equal
to the a
“specified portion” of the interest accrued on (i) the Class LTIIAX-40%4AX
Interest for each Distribution Date through the Distribution Date
in July
2009, and (ii) the Class LTIIAX-10%4AX Interest for each Distribution
Date, with such specified portion being equal to all interest accrued
thereon in excess of the interest thereon at a variable rate. Such
variable rate shall equal the product of (x) LIBOR plus 0.83% (for
each
such Distribution Date through the Pool 3-4 Initial Optional Termination
Date) or LIBOR plus 1.66% (for each such Distribution Date after
the Pool
3-4 Initial Optional Termination Date) and (y) a fraction the numerator
of
which is the actual number of days in the related Accrual Period
and the
denominator of which is 30.
|
| (6) |
The
initial principal amount for each of these REMIC II-1 Interests shall
equal 25% of the initial principal balance of the Corresponding Class
of
Certificates.
|
| (7) |
The
initial principal amount for the Class LTII1-XI Interest shall equal
the
excess of (i) 50% of the aggregate Pool Balance of Pool 3 and Pool
4 as of
the Cut-off Date over (ii) the aggregate initial principal balance
of the
REMIC II-1I Marker Classes.
|
| (8) |
The
initial principal amount for the Class LTII1-IIIA Interest shall
equal
0.0005% of the Pool Subordinate Amount for Pool 3 as of the first
Distribution Date.
|
| (9) |
The
initial principal amount for the Class LTII1-IIIB Interest shall
equal
0.0005% of the aggregate Scheduled Principal Balance of the Mortgage
Loans
in Pool 3 as of the Cut-off Date.
|
| (10) |
The
initial principal amount for the Class LTII1-IVA Interest shall equal
0.0005% of the Pool Subordinate Amount for Pool 4 as of the first
Distribution Date.
|
| (11) |
The
initial principal amount for the Class LTII1-IVB Interest shall equal
0.0005% of the aggregate Scheduled Principal Balance of the Mortgage
Loans
in Pool 4 as of the Cut-off Date.
|
| (12) |
The
initial principal amount for the Class LTII1-XII Interest shall equal
the
excess of (i) 50% of the aggregate Pool Balance of Pool 3 and Pool
4 as of
the Cut-off Date over (ii) the aggregate initial principal balance
of the
REMIC II-1II Marker Classes.
|
| (13) |
The
Class LTII1-R Interest is the sole class of residual interest in
REMIC
II-1. It does not have an interest rate or a principal balance. It
shall
be represented by the Class R
Certificate.
|
-12-
Each
of
the REMIC II-1 Regular Interests shall accrue interest on an “actual/360”
basis.
REMIC
II-2
The
following table sets forth (or describes) the Class designation, interest rate,
and initial principal amount for each Class of REMIC II-2
Interests.
|
Class
Designation
|
Interest
Rate
|
Initial
Class Principal Amount
|
Class
of Related Certificates
|
|||
|
LTII2-3A1
|
(1)
|
(2)
|
3-A1
|
|||
|
LTII2-3A2
|
(1)
|
(2)
|
3-A2
|
|||
|
LTII2-4A2AU
|
(1)
|
(2)
|
4-A2A
Underlying Interest
|
|||
|
LTII2-4A2BU
|
(1)
|
(2)
|
4-A2B
Underlying Interest
|
|||
|
LTII2-4A3U
|
(1)
|
(2)
|
4-A3
Underlying Interest
|
|||
|
LTII2-M1II
|
(1)
|
(2)
|
M1-II
|
|||
|
LTII2-M2II
|
(1)
|
(2)
|
M2-II
|
|||
|
LTII2-M3II
|
(1)
|
(2)
|
M3-II
|
|||
|
LTII2-M4II
|
(1)
|
(2)
|
M4-II
|
|||
|
LTII2-M5II
|
(1)
|
(2)
|
M5-II
|
|||
|
LTII2-M6II
|
(1)
|
(2)
|
M6-II
|
|||
|
LTII2-M7II
|
(1)
|
(2)
|
M7-II
|
|||
|
LTII2-M8II
|
(1)
|
(2)
|
M8-II
|
|||
|
LTII2-M9II
|
(1)
|
(2)
|
M9-II
|
|||
|
LTII2-XII
|
(3)
|
(3)
|
N/A
|
|||
|
LTII2-3AX
|
(4)
|
(4)
|
3-AX
|
|||
|
LTII2-4AX
|
(5)
|
(5)
|
4-AX
|
|||
|
LTII2-R
|
(6)
|
(6)
|
N/A
|
|||
|
LTII2-4A1
|
(1)
|
(1)
|
4-A1
Underlying Interest
|
| (1) |
The
interest rate with respect to any Distribution Date (and the related
Accrual Period) for each of these REMIC II-2 Interests is a per annum
rate
equal to the Certificate Interest Rate for the Related Certificates,
provided that in lieu of any Net Funds Cap set forth in the applicable
Certificate Interest Rate, the applicable REMIC Pass-Through Rate
shall be
used, and further provided that these REMIC II-2 Interests shall
not be
entitled to payments in respect of Excess Interest and shall not
have any
obligations with respect to Class I-II
Shortfalls.
|
| (2) |
The
initial principal balance for each of these REMIC II-2 Interests
shall
equal the initial principal balance of the Related
Certificates.
|
| (3) |
The
Class LTII2-XII Interest shall have an initial principal balance
equal to
the excess of the Cut-off Date Balance of Pool 3 and Pool 4 over
the
aggregate initial Certificate Principal Amounts of the Group II
Certificates. The Class LTII2-XII Interest shall accrue interest
on a
notional balance equal to the Class X-II Notional Balance at a rate
equal
to the Class X-II Interest Rate.
|
| (4) |
The
Class LTII2-3AX Interest shall be entitled to 100% of the accruals
on the
Class LTII1-3AX Interest.
|
| (5) |
The
Class LTII2-4AX Interest shall be entitled to 100% of the accruals
on the
Class LTII1-4AX Interest.
|
| (6) |
The
Class LTII2-R Interest is the sole Class of residual interest in
REMIC
II-2. It does not have an interest rate or a principal balance. It
shall
be represented by the Class R
Certificate.
|
-13-
Each
of
the REMIC II-2 Regular Interests shall accrue interest on an “actual/360”
basis.
REMIC
II-3
The
following table sets forth (or describes) the Class designation, interest rate,
and initial principal amount for each Class of REMIC II-3
Interests.
|
Class
Designation
|
Interest
Rate
|
Initial
Class Principal Amount
|
Class
of Related Certificates
|
|||
|
LTII3-3A1
|
(1)
|
(2)
|
3-A1
|
|||
|
LTII3-3A2
|
(1)
|
(2)
|
3-A2
|
|||
|
LTII3-4A2AU
|
(1)
|
(2)
|
4-A2A
Underlying Interest
|
|||
|
LTII3-4A2BU
|
(1)
|
(2)
|
4-A2B
Underlying Interest
|
|||
|
LTII3-4A3U
|
(1)
|
(2)
|
4-A3
Underlying Interest
|
|||
|
LTII3-M1II
|
(1)
|
(2)
|
M1-II
|
|||
|
LTII3-M2II
|
(1)
|
(2)
|
M2-II
|
|||
|
LTII3-M3II
|
(1)
|
(2)
|
M3-II
|
|||
|
LTII3-M4II
|
(1)
|
(2)
|
M4-II
|
|||
|
LTII3-M5II
|
(1)
|
(2)
|
M5-II
|
|||
|
LTII3-M6II
|
(1)
|
(2)
|
M6-II
|
|||
|
LTII3-M7II
|
(1)
|
(2)
|
M7-II
|
|||
|
LTII3-M8II
|
(1)
|
(2)
|
M8-II
|
|||
|
LTII3-M9II
|
(1)
|
(2)
|
M9-II
|
|||
|
LTII3-XII
|
(3)
|
(3)
|
N/A
|
|||
|
LTII3-3AX
|
(4)
|
(4)
|
N/A
|
|||
|
LTII3-4AX
|
(5)
|
(5)
|
N/A
|
|||
|
LTII3-R
|
(6)
|
(6)
|
N/A
|
|||
|
LTII3-4A1
|
(7)
|
(8)
|
N/A
|
|||
|
LTII3-4A1X
|
(7)
|
(8)
|
N/A
|
| (1) |
The
interest rate with respect to any Distribution Date (and the related
Accrual Period) for each of these REMIC II-3 Interests is a per annum
rate
equal to the Certificate Interest Rate for the Related Certificates,
provided that in lieu of any Net Funds Cap set forth in the applicable
Certificate Interest Rate, the applicable REMIC Pass-Through Rate
shall be
used, and further provided that these REMIC II-3 Interests shall
not be
entitled to payments in respect of Excess Interest and shall not
have any
obligations with respect to Class I-II
Shortfalls.
|
| (2) |
The
initial principal balance for each of these REMIC II-3 Interests
shall
equal the initial principal balance of the Related
Certificates.
|
| (3) |
The
Class LTII3-XII Interest shall be entitled to all amounts distributable
on
the Class LTII2-XII Interest.
|
| (4) |
The
Class LTII3-3AX Interest shall be entitled to 100% of the accruals
on the
Class LTII2-3AX Interest.
|
| (5) |
The
Class LTII3-4AX Interest shall be entitled to 100% of the accruals
on the
Class LTII2-4AX Interest.
|
| (6) |
The
Class LTII3-R Interest is the sole Class of residual interest in
REMIC
II-3. It does not have an interest rate or a principal balance. It
shall
be represented by the Class R
Certificate.
|
| (7) |
The
interest rate with respect to any Distribution Date (and the related
Accrual Period) for each of these Lower Tier Interests is a per annum
rate
equal to the lesser of (i) LIBOR plus (x) 0.90% (for any Distribution
Date
on or prior to the Pool 3-4 Initial Optional Termination Date) or
1.80%
(for any Distribution Date after the Pool 3-4 Initial Optional Termination
Date) and (ii) Pool 4 Senior REMIC Cap for such Distribution
Date.
|
-14-
| (8) |
The
initial principal balance for each of these Lower Tier Interests
shall
equal 50% of the initial principal balance of the Class 4-A1 Underlying
Interest.
|
Each
of
the REMIC II-3 Regular Interests shall accrue interest on an “actual/360”
basis.
REMIC
II-4
The
following table sets forth (or describes) the Class designation, interest rate,
and initial principal amount for each Class of REMIC II-4
Interests.
|
Class
Designation
|
Interest
Rate
|
Initial
Class Principal Amount
|
Class
of Related Certificates
|
|||
|
LTII4-3A1
|
(1)
|
(2)
|
3-A1
|
|||
|
LTII4-3A2
|
(1)
|
(2)
|
3-A2
|
|||
|
LTII4-4A2AU
|
(1)
|
(2)
|
4-A2A
Underlying Interest
|
|||
|
LTII4-4A2BU
|
(1)
|
(2)
|
4-A2B
Underlying Interest
|
|||
|
LTII4-4A3U
|
(1)
|
(2)
|
4-A3
Underlying Interest
|
|||
|
LTII4-M1II
|
(1)
|
(2)
|
M1-II
|
|||
|
LTII4-M2II
|
(1)
|
(2)
|
M2-II
|
|||
|
LTII4-M3II
|
(1)
|
(2)
|
M3-II
|
|||
|
LTII4-M4II
|
(1)
|
(2)
|
M4-II
|
|||
|
LTII4-M5II
|
(1)
|
(2)
|
M5-II
|
|||
|
LTII4-M6II
|
(1)
|
(2)
|
M6-II
|
|||
|
LTII4-M7II
|
(1)
|
(2)
|
M7-II
|
|||
|
LTII4-M8II
|
(1)
|
(2)
|
M8-II
|
|||
|
LTII4-M9II
|
(1)
|
(2)
|
M9-II
|
|||
|
LTII4-XII
|
(3)
|
(3)
|
N/A
|
|||
|
LTII4-3AX
|
(4)
|
(4)
|
N/A
|
|||
|
LTII4-4AX
|
(5)
|
(5)
|
N/A
|
|||
|
LTII4-R
|
(6)
|
(6)
|
N/A
|
|||
|
LTII4-4A1A
|
(7)
|
(8)
|
N/A
|
|||
|
LTII4-4A1AX
|
(7)
|
(8)
|
N/A
|
|||
|
LTII4-4A1IA
|
(9)
|
(9)
|
N/A
|
| (1) |
The
interest rate with respect to any Distribution Date (and the related
Accrual Period) for each of these REMIC II-4 Interests is a per annum
rate
equal to the Certificate Interest Rate for the Related Certificates,
provided that in lieu of any Net Funds Cap set forth in the applicable
Certificate Interest Rate, the applicable REMIC Pass-Through Rate
shall be
used, and further provided that these REMIC II-4 Interests shall
not be
entitled to payments in respect of Excess Interest and shall not
have any
obligations with respect to Class I-II
Shortfalls.
|
| (2) |
The
initial principal balance for each of these REMIC II-4 Interests
shall
equal the initial principal balance of the Related
Certificates.
|
| (3) |
The
Class LTII4-XII Interest shall be entitled to all amounts distributable
on
the Class LTII3-XII Interest.
|
| (4) |
The
Class LTII4-3AX Interest shall be entitled to 100% of the accruals
on the
Class LTII3-3AX Interest.
|
| (5) |
The
Class LTII4-4AX Interest shall be entitled to 100% of the accruals
on the
Class LTII3-4AX Interest.
|
-15-
| (6) |
The
Class LTII4-R Interest is the sole Class of residual interest in
REMIC
II-4. It does not have an interest rate or a principal balance. It
shall
be represented by the Class R
Certificate.
|
| (7) |
The
interest rate with respect to any Distribution Date (and the related
Accrual Period) for each of these Lower Tier Interests is a per annum
rate
equal to the lesser of (i) LIBOR plus (x) 0.80% (for any Distribution
Date
on or prior to the Pool 3-4 Initial Optional Termination Date) or
1.60%
(for any Distribution Date after the Pool 3-4 Initial Optional Termination
Date) and (ii) Pool 4 Senior REMIC Cap for such Distribution
Date.
|
| (8) |
The
initial principal balance for each of these Lower Tier Interests
shall
equal 50% of the initial principal balance of the Class 4-A1 Underlying
Interest.
|
| (9) |
The
Class LTII4-4A1IA Interest shall not have an initial principal amount;
it
shall accrue interest for each Distribution Date (and the related
Accrual
Period) on a notional amount equal to the aggregate principal balance
of
the Class LTII3-4A1 Interest and Class LTII3-4A1X Interest immediately
prior to such Distribution Date at a rate equal to the excess of
(i) the
weighted average of the rates on such Lower Tier Interests over (ii)
2
times the weighted average of the rates on such Lower Tier Interests
(treating, for purposes of this clause (ii), the rate on the first
such
Lower Tier Interest as being subject to a cap equal to the rate on
the
Class LTII4-4A1A Interest and the rate on the second such Lower Tier
Interest as being subject to a cap equal to
zero).
|
Each
of
the REMIC II-4 Regular Interests shall accrue interest on an “actual/360”
basis.
REMIC
II-5
The
following table sets forth (or describes) the Class designation, interest rate,
and initial principal amount for each Class of REMIC II-5
Interests.
|
Class
Designation
|
Interest
Rate
|
Initial
Class Principal Amount
|
Class
of Related Certificates
|
|||
|
LTII5-3A1
|
(1)
|
(2)
|
3-A1
|
|||
|
LTII5-3A2
|
(1)
|
(2)
|
3-A2
|
|||
|
LTII5-4A2AU
|
(1)
|
(2)
|
4-A2A
Underlying Interest
|
|||
|
LTII5-4A2BU
|
(1)
|
(2)
|
4-A2B
Underlying Interest
|
|||
|
LTII5-4A3U
|
(1)
|
(2)
|
4-A3
Underlying Interest
|
|||
|
LTII5-M1II
|
(1)
|
(2)
|
M1-II
|
|||
|
LTII5-M2II
|
(1)
|
(2)
|
M2-II
|
|||
|
LTII5-M3II
|
(1)
|
(2)
|
M3-II
|
|||
|
LTII5-M4II
|
(1)
|
(2)
|
M4-II
|
|||
|
LTII5-M5II
|
(1)
|
(2)
|
M5-II
|
|||
|
LTII5-M6II
|
(1)
|
(2)
|
M6-II
|
|||
|
LTII5-M7II
|
(1)
|
(2)
|
M7-II
|
|||
|
LTII5-M8II
|
(1)
|
(2)
|
M8-II
|
|||
|
LTII5-M9II
|
(1)
|
(2)
|
M9-II
|
|||
|
LTII5-XII
|
(3)
|
(3)
|
N/A
|
|||
|
LTII5-3AX
|
(4)
|
(4)
|
N/A
|
|||
|
LTII5-4AX
|
(5)
|
(5)
|
N/A
|
|||
|
LTII5-R
|
(6)
|
(6)
|
N/A
|
|||
|
LTII5-4A1B
|
(7)
|
(8)
|
N/A
|
|||
|
LTII5-4A1BX
|
(7)
|
(8)
|
N/A
|
|||
|
LTII5-4A1IB
|
(9)
|
(9)
|
N/A
|
-16-
|
Class
Designation
|
Interest
Rate
|
Initial
Class Principal Amount
|
Class
of Related Certificates
|
|
LTII5-4A1IA
|
(10)
|
(10)
|
N/A
|
| (1) |
The
interest rate with respect to any Distribution Date (and the related
Accrual Period) for each of these REMIC II-5 Interests is a per annum
rate
equal to the Certificate Interest Rate for the Related Certificates,
provided that in lieu of any Net Funds Cap set forth in the applicable
Certificate Interest Rate, the applicable REMIC Pass-Through Rate
shall be
used, and further provided that these REMIC II-5 Interests shall
not be
entitled to payments in respect of Excess Interest and shall not
have any
obligations with respect to Class I-II
Shortfalls.
|
| (2) |
The
initial principal balance for each of these REMIC II-5 Interests
shall
equal the initial principal balance of the Related
Certificates.
|
| (3) |
The
Class LTII5-XII Interest shall be entitled to all amounts distributable
on
the Class LTII4-XII Interest.
|
| (4) |
The
Class LTII5-3AX Interest shall be entitled to 100% of the accruals
on the
Class LTII4-3AX Interest.
|
| (5) |
The
Class LTII5-4AX Interest shall be entitled to 100% of the accruals
on the
Class LTII4-4AX Interest.
|
| (6) |
The
Class LTII5-R Interest is the sole Class of residual interest in
REMIC
II-5. It does not have an interest rate or a principal balance. It
shall
be represented by the Class R
Certificate.
|
| (7) |
The
interest rate with respect to any Distribution Date (and the related
Accrual Period) for each of these Lower Tier Interests is a per annum
rate
equal to the lesser of (i) LIBOR plus (x) 0.70% (for any Distribution
Date
on or prior to the Pool 3-4 Initial Optional Termination Date) or
1.40%
(for any Distribution Date after the Pool 3-4 Initial Optional Termination
Date) and (ii) Pool 4 Senior REMIC Cap for such Distribution
Date.
|
| (8) |
The
initial principal balance for each of these Lower Tier Interests
shall
equal 50% of the initial principal balance of the Class 4-A1 Underlying
Interest.
|
| (9) |
The
Class LTII5-4A1IB Interest shall not have an initial principal amount;
it
shall accrue interest for each Distribution Date (and the related
Accrual
Period) on a notional amount equal to the aggregate principal balance
of
the Class LTII4-4A1A Interest and Class LTII4-4A1AX Interest immediately
prior to such Distribution Date at a rate equal to the excess of
(i) the
weighted average of the rates on such Lower Tier Interests over (ii)
2
times the weighted average of the rates on such Lower Tier Interests
(treating, for purposes of this clause (ii), the rate on the first
such
Lower Tier Interest as being subject to a cap equal to the rate on
the
Class LTII5-4A1B Interest and the rate on the second such Lower Tier
Interest as being subject to a cap equal to
zero).
|
| (10) |
The
Class LTII5-4A1IA Interest shall be entitled to 100% of the accruals
on
the Class LTII4-4A1IA Interest.
|
Each
of
the REMIC II-5 Regular Interests shall accrue interest on an “actual/360”
basis.
REMIC
II-6
The
following table sets forth (or describes) the Class designation, interest rate,
and initial principal amount for each Class of REMIC II-6
Interests.
|
Class
Designation
|
Interest
Rate
|
Initial
Class Principal Amount
|
Class
of Related Certificates
|
|||
|
LTII6-3A1
|
(1)
|
(2)
|
3-A1
|
|||
|
LTII6-3A2
|
(1)
|
(2)
|
3-A2
|
|||
|
LTII6-4A2AU
|
(1)
|
(2)
|
4-A2A
Underlying Interest
|
-17-
|
Class
Designation
|
Interest
Rate
|
Initial
Class Principal Amount
|
Class
of Related Certificates
|
|
LTII6-4A2BU
|
(1)
|
(2)
|
4-A2B
Underlying Interest
|
|||
|
LTII6-4A3U
|
(1)
|
(2)
|
4-A3
Underlying Interest
|
|||
|
LTII6-M1II
|
(1)
|
(2)
|
M1-II
|
|||
|
LTII6-M2II
|
(1)
|
(2)
|
M2-II
|
|||
|
LTII6-M3II
|
(1)
|
(2)
|
M3-II
|
|||
|
LTII6-M4II
|
(1)
|
(2)
|
M4-II
|
|||
|
LTII6-M5II
|
(1)
|
(2)
|
M5-II
|
|||
|
LTII6-M6II
|
(1)
|
(2)
|
M6-II
|
|||
|
LTII6-M7II
|
(1)
|
(2)
|
M7-II
|
|||
|
LTII6-M8II
|
(1)
|
(2)
|
M8-II
|
|||
|
LTII6-M9II
|
(1)
|
(2)
|
M9-II
|
|||
|
LTII6-XII
|
(3)
|
(3)
|
N/A
|
|||
|
LTII6-3AX
|
(4)
|
(4)
|
N/A
|
|||
|
LTII6-4AX
|
(5)
|
(5)
|
N/A
|
|||
|
LTII6-R
|
(6)
|
(6)
|
N/A
|
|||
|
LTII6-4A1C
|
(7)
|
(8)
|
N/A
|
|||
|
LTII6-4A1CX
|
(7)
|
(8)
|
N/A
|
|||
|
LTII6-4A1IC
|
(9)
|
(9)
|
N/A
|
|||
|
LTII6-4A1IB
|
(10)
|
(10)
|
N/A
|
|||
|
LTII6-4A1IA
|
(11)
|
(11)
|
N/A
|
| (1) |
The
interest rate with respect to any Distribution Date (and the related
Accrual Period) for each of these REMIC II-6 Interests is a per annum
rate
equal to the Certificate Interest Rate for the Related Certificates,
provided that in lieu of any Net Funds Cap set forth in the applicable
Certificate Interest Rate, the applicable REMIC Pass-Through Rate
shall be
used, and further provided that these REMIC II-6 Interests shall
not be
entitled to payments in respect of Excess Interest and shall not
have any
obligations with respect to Class I-II
Shortfalls.
|
| (2) |
The
initial principal balance for each of these REMIC II-6 Interests
shall
equal the initial principal balance of the Related
Certificates.
|
| (3) |
The
Class LTII6-XII Interest shall be entitled to all amounts distributable
on
the Class LTII5-XII Interest.
|
| (4) |
The
Class LTII6-3AX Interest shall be entitled to 100% of the accruals
on the
Class LTII5-3AX Interest.
|
| (5) |
The
Class LTII6-4AX Interest shall be entitled to 100% of the accruals
on the
Class LTII5-4AX Interest.
|
| (6) |
The
Class LTII6-R Interest is the sole Class of residual interest in
REMIC
II-6. It does not have an interest rate or a principal balance. It
shall
be represented by the Class R
Certificate.
|
| (7) |
The
interest rate with respect to any Distribution Date (and the related
Accrual Period) for each of these Lower Tier Interests is a per annum
rate
equal to the lesser of (i) LIBOR plus (x) 0.60% (for any Distribution
Date
on or prior to the Pool 3-4 Initial Optional Termination Date) or
1.20%
(for any Distribution Date after the Pool 3-4 Initial Optional Termination
Date) and (ii) Pool 4 Senior REMIC Cap for such Distribution
Date.
|
| (8) |
The
initial principal balance for each of these Lower Tier Interests
shall
equal 50% of the initial principal balance of the Class 4-A1 Underlying
Interest.
|
| (9) |
The
Class LTII6-4A1IC Interest shall not have an initial principal amount;
it
shall accrue interest for each Distribution Date (and the related
Accrual
Period) on a notional amount equal to the aggregate principal balance
of
the Class LTII5-4A1B Interest and Class LTII5-4A1BX Interest immediately
prior to such Distribution Date at a rate equal to the excess of
(i) the
weighted average of the rates on such Lower Tier Interests over (ii)
2
times the weighted average of the rates on such Lower Tier Interests
(treating, for purposes of this clause (ii), the rate on the first
such
Lower Tier Interest as being subject to a cap equal to the rate on
the
Class LTII6-4A1C Interest and the rate on the second such Lower Tier
Interest as being subject to a cap equal to
zero).
|
-18-
| (10) |
The
Class LTII6-4A1IB Interest shall be entitled to 100% of the accruals
on
the Class LTII5-4A1IB Interest.
|
| (11) |
The
Class LTII6-4A1IA Interest shall be entitled to 100% of the accruals
on
the Class LTII5-4A1IA Interest.
|
Each
of
the REMIC II-6 Regular Interests shall accrue interest on an “actual/360”
basis.
REMIC
II-7
The
following table sets forth (or describes) the Class designation, interest rate,
and initial principal amount for each Class of REMIC II-7
Interests.
|
Class
Designation
|
Interest
Rate
|
Initial
Class Principal Amount
|
Class
of Related Certificates
|
|||
|
LTII7-3A1
|
(1)
|
(2)
|
3-A1
|
|||
|
LTII7-3A2
|
(1)
|
(2)
|
3-A2
|
|||
|
LTII7-4A2AU
|
(1)
|
(2)
|
4-A2A
Underlying Interest
|
|||
|
LTII7-4A2BU
|
(1)
|
(2)
|
4-A2B
Underlying Interest
|
|||
|
LTII7-4A3U
|
(1)
|
(2)
|
4-A3
Underlying Interest
|
|||
|
LTII7-M1II
|
(1)
|
(2)
|
M1-II
|
|||
|
LTII7-M2II
|
(1)
|
(2)
|
M2-II
|
|||
|
LTII7-M3II
|
(1)
|
(2)
|
M3-II
|
|||
|
LTII7-M4II
|
(1)
|
(2)
|
M4-II
|
|||
|
LTII7-M5II
|
(1)
|
(2)
|
M5-II
|
|||
|
LTII7-M6II
|
(1)
|
(2)
|
M6-II
|
|||
|
LTII7-M7II
|
(1)
|
(2)
|
M7-II
|
|||
|
LTII7-M8II
|
(1)
|
(2)
|
M8-II
|
|||
|
LTII7-M9II
|
(1)
|
(2)
|
M9-II
|
|||
|
LTII7-XII
|
(3)
|
(3)
|
N/A
|
|||
|
LTII7-3AX
|
(4)
|
(4)
|
N/A
|
|||
|
LTII7-4AX
|
(5)
|
(5)
|
N/A
|
|||
|
LTII7-R
|
(6)
|
(6)
|
N/A
|
|||
|
LTII7-4A1D
|
(7)
|
(8)
|
N/A
|
|||
|
LTII7-4A1DX
|
(7)
|
(8)
|
N/A
|
|||
|
LTII7-4A1ID
|
(9)
|
(9)
|
N/A
|
|||
|
LTII7-4A1IC
|
(10)
|
(10)
|
N/A
|
|||
|
LTII7-4A1IB
|
(11)
|
(11)
|
N/A
|
|||
|
LTII7-4A1IA
|
(12)
|
(12)
|
N/A
|
|
(1)
|
The
interest rate with respect to any Distribution Date (and the related
Accrual Period) for each of these REMIC II-7 Interests is a per annum
rate
equal to the Certificate Interest Rate for the Related Certificates,
provided that in lieu of any Net Funds Cap set forth in the applicable
Certificate Interest Rate, the applicable REMIC Pass-Through Rate
shall be
used, and further provided that these REMIC II-7 Interests shall
not be
entitled to payments in respect of Excess Interest and shall not
have any
obligations with respect to Class I-II
Shortfalls.
|
-19-
| (2) |
The
initial principal balance for each of these REMIC II-7 Interests
shall
equal the initial principal balance of the Related
Certificates.
|
| (3) |
The
Class LTII7-XII Interest shall be entitled to all amounts distributable
on
the Class LTII6-XII Interest.
|
| (4) |
The
Class LTII7-3AX Interest shall be entitled to 100% of the accruals
on the
Class LTII6-3AX Interest.
|
| (5) |
The
Class LTII7-4AX Interest shall be entitled to 100% of the accruals
on the
Class LTII6-4AX Interest.
|
| (6) |
The
Class LTII7-R Interest is the sole Class of residual interest in
REMIC
II-7. It does not have an interest rate or a principal balance. It
shall
be represented by the Class R
Certificate.
|
| (7) |
The
interest rate with respect to any Distribution Date (and the related
Accrual Period) for each of these Lower Tier Interests is a per annum
rate
equal to the lesser of (i) LIBOR plus (x) 0.50% (for any Distribution
Date
on or prior to the Pool 3-4 Initial Optional Termination Date) or
1.00%
(for any Distribution Date after the Pool 3-4 Initial Optional Termination
Date) and (ii) Pool 4 Senior REMIC Cap for such Distribution
Date.
|
| (8) |
The
initial principal balance for each of these Lower Tier Interests
shall
equal 50% of the initial principal balance of the Class 4-A1 Underlying
Interest.
|
| (9) |
The
Class LTII7-4A1ID Interest shall not have an initial principal amount;
it
shall accrue interest for each Distribution Date (and the related
Accrual
Period) on a notional amount equal to the aggregate principal balance
of
the Class LTII6-4A1C Interest and Class LTII6-4A1CX Interest immediately
prior to such Distribution Date at a rate equal to the excess of
(i) the
weighted average of the rates on such Lower Tier Interests over (ii)
2
times the weighted average of the rates on such Lower Tier Interests
(treating, for purposes of this clause (ii), the rate on the first
such
Lower Tier Interest as being subject to a cap equal to the rate on
the
Class LTII7-4A1D Interest and the rate on the second such Lower Tier
Interest as being subject to a cap equal to
zero).
|
| (10) |
The
Class LTII7-4A1IC Interest shall be entitled to 100% of the accruals
on
the Class LTII6-4A1IC Interest.
|
| (11) |
The
Class LTII7-4A1IB Interest shall be entitled to 100% of the accruals
on
the Class LTII6-4A1IB Interest.
|
| (12) |
The
Class LTII7-4A1IA Interest shall be entitled to 100% of the accruals
on
the Class LTII6-4A1IA Interest.
|
Each
of
the REMIC II-7 Regular Interests shall accrue interest on an “actual/360”
basis.
REMIC
II-8
The
following table sets forth (or describes) the Class designation, interest rate,
and initial principal amount for each Class of REMIC II-8
Interests.
|
Class
Designation
|
Interest
Rate
|
Initial
Class Principal Amount
|
Class
of Related Certificates
|
|||
|
LTII8-3A1
|
(1)
|
(2)
|
3-A1
|
|||
|
LTII8-3A2
|
(1)
|
(2)
|
3-A2
|
|||
|
LTII8-4A2AU
|
(1)
|
(2)
|
4-A2A
Underlying Interest
|
|||
|
LTII8-4A2BU
|
(1)
|
(2)
|
4-A2B
Underlying Interest
|
|||
|
LTII8-4A3U
|
(1)
|
(2)
|
4-A3
Underlying Interest
|
|||
|
LTII8-M1II
|
(1)
|
(2)
|
M1-II
|
|||
|
LTII8-M2II
|
(1)
|
(2)
|
M2-II
|
|||
|
LTII8-M3II
|
(1)
|
(2)
|
M3-II
|
|||
|
LTII8-M4II
|
(1)
|
(2)
|
M4-II
|
|||
|
LTII8-M5II
|
(1)
|
(2)
|
M5-II
|
|||
|
LTII8-M6II
|
(1)
|
(2)
|
M6-II
|
-20-
|
Class
Designation
|
Interest
Rate
|
Initial
Class Principal Amount
|
Class
of Related Certificates
|
|
LTII8-M7II
|
(1)
|
(2)
|
M7-II
|
|||
|
LTII8-M8II
|
(1)
|
(2)
|
M8-II
|
|||
|
LTII8-M9II
|
(1)
|
(2)
|
M9-II
|
|||
|
LTII8-XII
|
(3)
|
(3)
|
N/A
|
|||
|
LTII8-3AX
|
(4)
|
(4)
|
N/A
|
|||
|
LTII8-4AX
|
(5)
|
(5)
|
N/A
|
|||
|
LTII7-R
|
(6)
|
(6)
|
N/A
|
|||
|
LTII8-4A1E
|
(7)
|
(8)
|
N/A
|
|||
|
LTII8-4A1EX
|
(7)
|
(8)
|
N/A
|
|||
|
LTII8-4A1IE
|
(9)
|
(9)
|
N/A
|
|||
|
LTII8-4A1ID
|
(10)
|
(10)
|
N/A
|
|||
|
LTII8-4A1IC
|
(11)
|
(11)
|
N/A
|
|||
|
LTII8-4A1IB
|
(12)
|
(12)
|
N/A
|
|||
|
LTII8-4A1IA
|
(13)
|
(13)
|
N/A
|
| (1) | The interest rate with respect to any Distribution Date (and the related Accrual Period) for each of these REMIC II-8 Interests is a per annum rate equal to the Certificate Interest Rate for the Related Certificates, provided that in lieu of any Net Funds Cap set forth in the applicable Certificate Interest Rate, the applicable REMIC Pass-Through Rate shall be used, and further provided that these REMIC II-8 Interests shall not be entitled to payments in respect of Excess Interest and shall not have any obligations with respect to Class I-II Shortfalls. |
| (2) |
The
initial principal balance for each of these REMIC II-8 Interests
shall
equal the initial principal balance of the Related
Certificates.
|
| (3) |
The
Class LTII8-XII Interest shall be entitled to all amounts distributable
on
the Class LTII7-XII Interest.
|
| (4) |
The
Class LTII8-3AX Interest shall be entitled to 100% of the accruals
on the
Class LTII7-3AX Interest.
|
| (5) |
The
Class LTII8-4AX Interest shall be entitled to 100% of the accruals
on the
Class LTII7-4AX Interest.
|
| (6) |
The
Class LTII8-R Interest is the sole Class of residual interest in
REMIC
II-8. It does not have an interest rate or a principal balance. It
shall
be represented by the Class R
Certificate.
|
| (7) |
The
interest rate with respect to any Distribution Date (and the related
Accrual Period) for each of these Lower Tier Interests is a per annum
rate
equal to the lesser of (i) LIBOR plus (x) 0.40% (for any Distribution
Date
on or prior to the Pool 3-4 Initial Optional Termination Date) or
0.80%
(for any Distribution Date after the Pool 3-4 Initial Optional Termination
Date) and (ii) Pool 4 Senior REMIC Cap for such Distribution
Date.
|
| (8) |
The
initial principal balance for each of these Lower Tier Interests
shall
equal 50% of the initial principal balance of the Class 4-A1 Underlying
Interest.
|
| (9) |
The
Class LTII8-4A1IE Interest shall not have an initial principal amount;
it
shall accrue interest for each Distribution Date (and the related
Accrual
Period) on a notional amount equal to the aggregate principal balance
of
the Class LTII7-4A1D Interest and Class LTII7-4A1DX Interest immediately
prior to such Distribution Date at a rate equal to the excess of
(i) the
weighted average of the rates on such Lower Tier Interests over (ii)
2
times the weighted average of the rates on such Lower Tier Interests
(treating, for purposes of this clause (ii), the rate on the first
such
Lower Tier Interest as being subject to a cap equal to the rate on
the
Class LTII8-4A1E Interest and the rate on the second such Lower Tier
Interest as being subject to a cap equal to
zero).
|
| (10) |
The
Class LTII8-4A1ID Interest shall be entitled to 100% of the accruals
on
the Class LTII7-4A1ID Interest.
|
| (11) |
The
Class LTII8-4A1IC Interest shall be entitled to 100% of the accruals
on
the Class LTII7-4A1IC Interest.
|
| (12) |
The
Class LTII8-4A1IB Interest shall be entitled to 100% of the accruals
on
the Class LTII7-4A1IB Interest.
|
-21-
| (13) |
The
Class LTII8-4A1IA Interest shall be entitled to 100% of the accruals
on
the Class LTII7-4A1IA Interest.
|
Each
of
the REMIC II-8 Regular Interests shall accrue interest on an “actual/360”
basis.
REMIC
II-9
The
following table sets forth (or describes) the Class designation, interest rate,
and initial principal amount for each Class of REMIC II-9
Interests.
|
Class
Designation
|
Interest
Rate
|
Initial
Class Principal Amount
|
Class
of Related Certificates
|
|||
|
LTII9-3A1
|
(1)
|
(2)
|
3-A1
|
|||
|
LTII9-3A2
|
(1)
|
(2)
|
3-A2
|
|||
|
LTII9-4A2AU
|
(1)
|
(2)
|
4-A2A
Underlying Interest
|
|||
|
LTII9-4A2BU
|
(1)
|
(2)
|
4-A2B
Underlying Interest
|
|||
|
LTII9-4A3U
|
(1)
|
(2)
|
4-A3
Underlying Interest
|
|||
|
LTII9-M1II
|
(1)
|
(2)
|
M1-II
|
|||
|
LTII9-M2II
|
(1)
|
(2)
|
M2-II
|
|||
|
LTII9-M3II
|
(1)
|
(2)
|
M3-II
|
|||
|
LTII9-M4II
|
(1)
|
(2)
|
M4-II
|
|||
|
LTII9-M5II
|
(1)
|
(2)
|
M5-II
|
|||
|
LTII9-M6II
|
(1)
|
(2)
|
M6-II
|
|||
|
LTII9-M7II
|
(1)
|
(2)
|
M7-II
|
|||
|
LTII9-M8II
|
(1)
|
(2)
|
M8-II
|
|||
|
LTII9-M9II
|
(1)
|
(2)
|
M9-II
|
|||
|
LTII9-XII
|
(3)
|
(3)
|
N/A
|
|||
|
LTII9-3AX
|
(4)
|
(4)
|
N/A
|
|||
|
LTII9-4AX
|
(5)
|
(5)
|
N/A
|
|||
|
LTII9-R
|
(6)
|
(6)
|
N/A
|
|||
|
LTII9-4A1F
|
(7)
|
(8)
|
N/A
|
|||
|
LTII9-4A1FX
|
(7)
|
(8)
|
N/A
|
|||
|
LTII9-4A1IF
|
(9)
|
(9)
|
N/A
|
|||
|
LTII9-4A1IE
|
(10)
|
(10)
|
N/A
|
|||
|
LTII9-4A1ID
|
(11)
|
(11)
|
N/A
|
|||
|
LTII9-4A1IC
|
(12)
|
(12)
|
N/A
|
|||
|
LTII9-4A1IB
|
(13)
|
(13)
|
N/A
|
|||
|
LTII9-4A1IA
|
(14)
|
(14)
|
N/A
|
| (1) | The interest rate with respect to any Distribution Date (and the related Accrual Period) for each of these REMIC II-9 Interests is a per annum rate equal to the Certificate Interest Rate for the Related Certificates, provided that in lieu of any Net Funds Cap set forth in the applicable Certificate Interest Rate, the applicable REMIC Pass-Through Rate shall be used, and further provided that these REMIC II-9 Interests shall not be entitled to payments in respect of Excess Interest and shall not have any obligations with respect to Class I-II Shortfalls. |
| (2) |
The
initial principal balance for each of these REMIC II-9 Interests
shall
equal the initial principal balance of the Related
Certificates.
|
-22-
| (3) |
The
Class LTII9-XII Interest shall be entitled to all amounts distributable
on
the Class LTII8-XII Interest.
|
| (4) |
The
Class LTII9-3AX Interest shall be entitled to 100% of the accruals
on the
Class LTII8-3AX Interest.
|
| (5) |
The
Class LTII9-4AX Interest shall be entitled to 100% of the accruals
on the
Class LTII8-4AX Interest.
|
| (6) |
The
Class LTII9-R Interest is the sole Class of residual interest in
REMIC
II-9. It does not have an interest rate or a principal balance. It
shall
be represented by the Class R
Certificate.
|
| (7) |
The
interest rate with respect to any Distribution Date (and the related
Accrual Period) for each of these Lower Tier Interests is a per annum
rate
equal to the lesser of (i) LIBOR plus (x) 0.30% (for any Distribution
Date
on or prior to the Pool 3-4 Initial Optional Termination Date) or
0.60%
(for any Distribution Date after the Pool 3-4 Initial Optional Termination
Date) and (ii) Pool 4 Senior REMIC Cap for such Distribution
Date.
|
| (8) |
The
initial principal balance for each of these Lower Tier Interests
shall
equal 50% of the initial principal balance of the Class 4-A1 Underlying
Interest.
|
| (9) |
The
Class LTII9-4A1IF Interest shall not have an initial principal amount;
it
shall accrue interest for each Distribution Date (and the related
Accrual
Period) on a notional amount equal to the aggregate principal balance
of
the Class LTII8-4A1E Interest and Class LTII8-4A1EX Interest immediately
prior to such Distribution Date at a rate equal to the excess of
(i) the
weighted average of the rates on such Lower Tier Interests over (ii)
2
times the weighted average of the rates on such Lower Tier Interests
(treating, for purposes of this clause (ii), the rate on the first
such
Lower Tier Interest as being subject to a cap equal to the rate on
the
Class LTII9-4A1F Interest and the rate on the second such Lower Tier
Interest as being subject to a cap equal to
zero).
|
| (10) |
The
Class LTII9-4A1IE Interest shall be entitled to 100% of the accruals
on
the Class LTII8-4A1IE Interest.
|
| (11) |
The
Class LTII9-4A1ID Interest shall be entitled to 100% of the accruals
on
the Class LTII8-4A1ID Interest.
|
| (12) |
The
Class LTII9-4A1IC Interest shall be entitled to 100% of the accruals
on
the Class LTII8-4A1IC Interest.
|
| (13) |
The
Class LTII9-4A1IB Interest shall be entitled to 100% of the accruals
on
the Class LTII8-4A1IB Interest.
|
| (14) |
The
Class LTII9-4A1IA Interest shall be entitled to 100% of the accruals
on
the Class LTII8-4A1IA Interest.
|
Each
of
the REMIC II-9 Regular Interests shall accrue interest on an “actual/360”
basis.
REMIC
II-10
The
following table sets forth (or describes) the Class designation, interest rate,
and initial principal amount for each Class of REMIC II-10
Interests.
|
Class
Designation
|
Interest
Rate
|
Initial
Class Principal Amount
|
Class
of Related Certificates
|
|||
|
LTII10-3A1
|
(1)
|
(2)
|
3-A1
|
|||
|
LTII10-3A2
|
(1)
|
(2)
|
3-A2
|
|||
|
LTII10-4A2AU
|
(1)
|
(2)
|
4-A2A
Underlying Interest
|
|||
|
LTII10-4A2BU
|
(1)
|
(2)
|
4-A2B
Underlying Interest
|
|||
|
LTII10-4A3U
|
(1)
|
(2)
|
4-A3
Underlying Interest
|
|||
|
LTII10-M1II
|
(1)
|
(2)
|
M1-II
|
|||
|
LTII10-M2II
|
(1)
|
(2)
|
M2-II
|
|||
|
LTII10-M3II
|
(1)
|
(2)
|
M3-II
|
|||
|
LTII10-M4II
|
(1)
|
(2)
|
M4-II
|
|||
|
LTII10-M5II
|
(1)
|
(2)
|
M5-II
|
-23-
|
Class
Designation
|
Interest
Rate
|
Initial
Class Principal Amount
|
Class
of Related Certificates
|
|
LTII10-M6II
|
(1)
|
(2)
|
M6-II
|
|||
|
LTII10-M7II
|
(1)
|
(2)
|
M7-II
|
|||
|
LTII10-M8II
|
(1)
|
(2)
|
M8-II
|
|||
|
LTII10-M9II
|
(1)
|
(2)
|
M9-II
|
|||
|
LTII10-XII
|
(3)
|
(3)
|
N/A
|
|||
|
LTII10-3AX
|
(4)
|
(4)
|
N/A
|
|||
|
LTII10-4AX
|
(5)
|
(5)
|
N/A
|
|||
|
LTII10-R
|
(6)
|
(6)
|
N/A
|
|||
|
LTII10-4A1G
|
(7)
|
(8)
|
N/A
|
|||
|
LTII10-4A1GX
|
(7)
|
(8)
|
N/A
|
|||
|
LTII10-4A1IG
|
(9)
|
(9)
|
N/A
|
|||
|
LTII10-4A1IF
|
(10)
|
(10)
|
N/A
|
|||
|
LTII10-4A1IE
|
(11)
|
(11)
|
N/A
|
|||
|
LTII10-4A1ID
|
(12)
|
(12)
|
N/A
|
|||
|
LTII10-4A1IC
|
(13)
|
(13)
|
N/A
|
|||
|
LTII10-4A1IB
|
(14)
|
(14)
|
N/A
|
|||
|
LTII10-4A1IA
|
(15)
|
(15)
|
N/A
|
| (1) |
The
interest rate with respect to any Distribution Date (and the related
Accrual Period) for each of these REMIC II-10 Interests is a per
annum
rate equal to the Certificate Interest Rate for the Related Certificates,
provided that in lieu of any Net Funds Cap set forth in the applicable
Certificate Interest Rate, the applicable REMIC Pass-Through Rate
shall be
used, and further provided that these REMIC II-10 Interests shall
not be
entitled to payments in respect of Excess Interest and shall not
have any
obligations with respect to Class I-II
Shortfalls.
|
| (2) |
The
initial principal balance for each of these REMIC II-10 Interests
shall
equal the initial principal balance of the Related
Certificates.
|
| (3) |
The
Class LTII10-XII Interest shall be entitled to all amounts distributable
on the Class LTII9-XII Interest.
|
| (4) |
The
Class LTII10-3AX Interest shall be entitled to 100% of the accruals
on the
Class LTII9-3AX Interest.
|
| (5) |
The
Class LTII10-4AX Interest shall be entitled to 100% of the accruals
on the
Class LTII9-4AX Interest.
|
| (6) |
The
Class LTII10-R Interest is the sole Class of residual interest in
REMIC
II-10. It does not have an interest rate or a principal balance.
It shall
be represented by the Class R
Certificate.
|
| (7) |
The
interest rate with respect to any Distribution Date (and the related
Accrual Period) for each of these Lower Tier Interests is a per annum
rate
equal to the lesser of (i) LIBOR plus (x) 0.25% (for any Distribution
Date
on or prior to the Pool 3-4 Initial Optional Termination Date) or
0.50%
(for any Distribution Date after the Pool 3-4 Initial Optional Termination
Date) and (ii) Pool 4 Senior REMIC Cap for such Distribution
Date.
|
| (8) |
The
initial principal balance for each of these Lower Tier Interests
shall
equal 50% of the initial principal balance of the Class 4-A1 Underlying
Interest.
|
| (9) |
The
Class LTII10-4A1IG Interest shall not have an initial principal amount;
it
shall accrue interest for each Distribution Date (and the related
Accrual
Period) on a notional amount equal to the aggregate principal balance
of
the Class LTII9-4A1F Interest and Class LTII9-4A1FX Interest immediately
prior to such Distribution Date at a rate equal to the excess of
(i) the
weighted average of the rates on such Lower Tier Interests over (ii)
2
times the weighted average of the rates on such Lower Tier Interests
(treating, for purposes of this clause (ii), the rate on the first
such
Lower Tier Interest as being subject to a cap equal to the rate on
the
Class LTII10-4A1G Interest and the rate on the second such Lower
Tier
Interest as being subject to a cap equal to
zero).
|
| (10) |
The
Class LTII10-4A1IF Interest shall be entitled to 100% of the accruals
on
the Class LTII9-4A1IF Interest.
|
-24-
| (11) |
The
Class LTII10-4A1IE Interest shall be entitled to 100% of the accruals
on
the Class LTII9-4A1IE Interest.
|
| (12) |
The
Class LTII10-4A1ID Interest shall be entitled to 100% of the accruals
on
the Class LTII9-4A1ID Interest.
|
| (13) |
The
Class LTII10-4A1IC Interest shall be entitled to 100% of the accruals
on
the Class LTII9-4A1IC Interest.
|
| (14) |
The
Class LTII10-4A1IB Interest shall be entitled to 100% of the accruals
on
the Class LTII9-4A1IB Interest.
|
| (15) |
The
Class LTII10-4A1IA Interest shall be entitled to 100% of the accruals
on
the Class LTII9-4A1IA Interest.
|
Each
of
the REMIC II-10 Regular Interests shall accrue interest on an “actual/360”
basis.
REMIC
II-11
The
following table sets forth (or describes) the Class designation, interest rate,
and initial principal amount for each Class of REMIC II-11
Interests.
|
Class
Designation
|
Interest
Rate
|
Initial
Class Principal Amount
|
Class
of Related Certificates
|
|||
|
LTII11-3A1
|
(1)
|
(2)
|
3-A1
|
|||
|
LTII11-3A2
|
(1)
|
(2)
|
3-A2
|
|||
|
LTII11-4A2AU
|
(1)
|
(2)
|
4-A2A
Underlying Interest
|
|||
|
LTII11-4A2BU
|
(1)
|
(2)
|
4-A2B
Underlying Interest
|
|||
|
LTII11-4A3U
|
(1)
|
(2)
|
4-A3
Underlying Interest
|
|||
|
LTII11-M1II
|
(1)
|
(2)
|
M1-II
|
|||
|
LTII11-M2II
|
(1)
|
(2)
|
M2-II
|
|||
|
LTII11-M3II
|
(1)
|
(2)
|
M3-II
|
|||
|
LTII11-M4II
|
(1)
|
(2)
|
M4-II
|
|||
|
LTII11-M5II
|
(1)
|
(2)
|
M5-II
|
|||
|
LTII11-M6II
|
(1)
|
(2)
|
M6-II
|
|||
|
LTII11-M7II
|
(1)
|
(2)
|
M7-II
|
|||
|
LTII11-M8II
|
(1)
|
(2)
|
M8-II
|
|||
|
LTII11-M9II
|
(1)
|
(2)
|
M9-II
|
|||
|
Uncertificated
Class X-II Interest
|
(3)
|
(3)
|
N/A
|
|||
|
LTII11-3AX
|
(4)
|
(4)
|
N/A
|
|||
|
LTII11-4AX
|
(5)
|
(5)
|
N/A
|
|||
|
Residual
II Interest
|
(6)
|
(6)
|
N/A
|
|||
|
LTII11-4A1
|
(7)
|
(8)
|
N/A
|
|||
|
LTII11-4A1IH
|
(9)
|
(9)
|
N/A
|
|||
|
LTII11-4A1IG
|
(10)
|
(10)
|
N/A
|
|||
|
LTII11-4A1IF
|
(11)
|
(11)
|
N/A
|
|||
|
LTII11-4A1IE
|
(12)
|
(12)
|
N/A
|
|||
|
LTII11-4A1ID
|
(13)
|
(13)
|
N/A
|
|||
|
LTII11-4A1IC
|
(14)
|
(14)
|
N/A
|
|||
|
LTII11-4A1IB
|
(15)
|
(15)
|
N/A
|
|||
|
LTII11-4A1IA
|
(16)
|
(16)
|
N/A
|
| (1) | The interest rate with respect to any Distribution Date (and the related Accrual Period) for each of these REMIC II-11 Interests is a per annum rate equal to the Certificate Interest Rate for the Related Certificates, provided that in lieu of any Net Funds Cap set forth in the applicable Certificate Interest Rate, the applicable REMIC Pass-Through Rate shall be used, and further provided that these REMIC II-11 Interests shall not be entitled to payments in respect of Excess Interest and shall not have any obligations with respect to Class I-II Shortfalls. |
| (2) |
The
initial principal balance for each of these REMIC II-11 Interests
shall
equal the initial principal balance of the Related Certificates.
Each of
these REMIC II-11 Interests shall be represented by the Related
Certificates.
|
-25-
| (3) |
The
Uncertificated Class X-II Interest shall have an initial principal
balance
equal to the excess of the Cut-off Date Balance of Pool 3 and Pool
4 over
the aggregate initial Certificate Principal Amounts of the Group
II
Certificates. The Uncertificated Class X-II Interest shall accrue
interest
on a notional balance equal to the Class X-II Notional Balance at
a rate
equal to the Class X-II Interest Rate. Alternatively, the Uncertificated
Class X-II Interest shall be entitled to all amounts distributable
on the
Class LTII10-XII Interest. This REMIC II-11 Interest shall be represented
by the Class X-II Certificates.
|
| (4) |
The
Class LTII11-3AX Interest shall be entitled to 100% of the accruals
on the
Class LTII10-3AX Interest. This REMIC II-11 Interest shall be represented
by the Class 3-AX Certificates.
|
| (5) |
The
Class LTII11-4AX Interest shall be entitled to 100% of the accruals
on the
Class LTII10-4AX Interest. This REMIC II-11 Interest shall be represented
by the Class 4-AX Certificates.
|
| (6) |
The
Residual II Interest is the sole Class of residual interest in REMIC
II-11. It does not have an interest rate or a principal balance.
It shall
be represented by the Class R
Certificate.
|
| (7) |
The
interest rate with respect to any Distribution Date (and the related
Accrual Period) for this REMIC II-11 Interest is a per annum rate
equal to
the lesser of (i) LIBOR plus (x) 0.20% (for any Distribution Date
on or
prior to the Pool 3-4 Initial Optional Termination Date) or 0.40%
(for any
Distribution Date after the Pool 3-4 Initial Optional Termination
Date)
and (ii) Pool 4 Senior REMIC Cap for such Distribution
Date.
|
| (8) |
The
initial principal balance for this REMIC II-11 Interest shall equal
the
initial principal balance of the Class 4-A1 Underlying
Interest.
|
| (9) |
The
Class LTII11-4A1IH Interest shall not have an initial principal amount;
it
shall accrue interest for each Distribution Date (and the related
Accrual
Period) on a notional amount equal to the aggregate principal balance
of
the Class LTII10-4A1G Interest and Class LTII10-4A1GX Interest immediately
prior to such Distribution Date at a rate equal to the excess of
(i) the
weighted average of the rates on such Lower Tier Interests over (ii)
2
times the weighted average of the rates on such Lower Tier Interests
(treating, for purposes of this clause (ii), the rate on the first
such
Lower Tier Interest as being subject to a cap equal to the rate on
the
Class LTII11-4A1 Interest and the rate on the second such Lower Tier
Interest as being subject to a cap equal to
zero).
|
| (10) |
The
Class LTII11-4A1IG Interest shall be entitled to 100% of the accruals
on
the Class LTII10-4A1IG Interest.
|
| (11) |
The
Class LTII11-4A1IF Interest shall be entitled to 100% of the accruals
on
the Class LTII10-4A1IF Interest.
|
| (12) |
The
Class LTII11-4A1IE Interest shall be entitled to 100% of the accruals
on
the Class LTII10-4A1IE Interest.
|
| (13) |
The
Class LTII11-4A1ID Interest shall be entitled to 100% of the accruals
on
the Class LTII10-4A1ID Interest.
|
| (14) |
The
Class LTII11-4A1IC Interest shall be entitled to 100% of the accruals
on
the Class LTII10-4A1IC Interest.
|
| (15) |
The
Class LTII11-4A1IB Interest shall be entitled to 100% of the accruals
on
the Class LTII10-4A1IB Interest.
|
| (16) |
The
Class LTII11-4A1IA Interest shall be entitled to 100% of the accruals
on
the Class LTII10-4A1IA Interest.
|
Each
of
the REMIC II-11 Regular Interests shall accrue interest on an “actual/360”
basis.
-26-
For
federal income tax purposes, the following Exchange Classes and Exchangeable
Classes (“Related Exchange or Exchangeable Classes”) represent indirect
beneficial grantor trust interests in the designated Underlying 4-A1 REMIC
Certificates (“Related Underlying REMIC Certificates”):
|
|
Underlying
4A1IA Interest
|
Underlying
4A1IB Interest
|
Underlying
4A1IC Interest
|
Underlying
4A1ID Interest
|
Underlying
4A1IE Interest
|
Underlying
4A1IF Interest
|
Underlying
4A1IG Interest
|
Underlying
4A1IH Interest
|
Underlying
4A1 Interest
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
4-A1
|
x
|
x
|
x
|
x
|
x
|
x
|
x
|
x
|
x
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
4-A1A
|
|
x
|
x
|
x
|
x
|
x
|
x
|
x
|
x
|
|||||||||
|
4-A1IA
|
x
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
4-A1B
|
|
|
x
|
x
|
x
|
x
|
x
|
x
|
x
|
|||||||||
|
4-A1IB
|
x
|
x
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
4-A1C
|
|
|
|
x
|
x
|
x
|
x
|
x
|
x
|
|||||||||
|
4-A1IC
|
x
|
x
|
x
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
4-A1D
|
|
|
|
|
x
|
x
|
x
|
x
|
x
|
|||||||||
|
4-A1ID
|
x
|
x
|
x
|
x
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
4-A1E
|
|
|
|
|
|
x
|
x
|
x
|
x
|
|||||||||
|
4-A1IE
|
x
|
x
|
x
|
x
|
x
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
4-A1F
|
|
|
|
|
|
|
x
|
x
|
x
|
|||||||||
|
4-A1IF
|
x
|
x
|
x
|
x
|
x
|
x
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
4-A1G
|
|
|
|
|
|
|
|
x
|
x
|
|||||||||
|
4-A1IG
|
x
|
x
|
x
|
x
|
x
|
x
|
x
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
4-A1H
|
|
|
|
|
|
|
|
|
x
|
|||||||||
|
4-A1IH
|
x
|
x
|
x
|
x
|
x
|
x
|
x
|
x
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
-27-
The
Certificates
The
following table sets forth (or describes) the Class designation, Certificate
Interest Rate, initial Class Principal Amount (or Class Notional Amount) and
minimum denomination for each Class of Certificates comprising interests in
the
Trust Fund created hereunder. Each Group I Certificate and the Class X-I
Certificate represents ownership of regular interests in REMIC I-2. Each Group
II Certificate (other than any Exchange Class or Exchangeable Class) and the
Class X-II Certificate represents ownership of regular interests in REMIC II-11.
Each Grantor Trust Certificate (other than any Exchange Class) represents a
beneficial interest in a Grantor Trust the assets of which consist of the
related Underlying Interest, the related Deferred Interest Cap Agreement and
the
related Deferred Interest Cap Account. Each Exchange Class or Exchangeable
Class
represents a beneficial interest in a grantor trust created under the Exchange
Trust Agreement holding the related Underlying REMIC Certificates.
|
Class
Designation
|
Interest
Rate
|
Initial
Class Principal Amount or Notional Amount
|
Minimum
Denominations
|
|||||||
|
Class
1-A1
|
(1
|
)
|
$
|
150,189,000
|
$
|
25,000
|
||||
|
Class
1-A2
|
(2
|
)
|
$
|
55,609,000
|
$
|
25,000
|
||||
|
Class
1-A3
|
(3
|
)
|
$
|
22,866,000
|
$
|
25,000
|
||||
|
Class
1C-A1
|
(4
|
)
|
$
|
154,841,000
|
$
|
25,000
|
||||
|
Class
1C-A2
|
(5
|
)
|
$
|
57,331,000
|
$
|
25,000
|
||||
|
Class
1C-A3
|
(6
|
)
|
$
|
23,574,000
|
$
|
25,000
|
||||
|
Class
2-A1
|
(7
|
)
|
$
|
380,868,000
|
$
|
25,000
|
||||
|
Class
2-A2
|
(8
|
)
|
$
|
141,018,000
|
$
|
25,000
|
||||
|
Class
2-A3
|
(9
|
)
|
$
|
57,987,000
|
$
|
25,000
|
||||
|
Class
AF2
|
(10
|
)
|
$
|
253,958,000
|
$
|
25,000
|
||||
|
Class
AF3
|
(11
|
)
|
$
|
104,427,000
|
$
|
25,000
|
||||
|
Class
3-A1
|
(12
|
)
|
$
|
332,519,000
|
$
|
25,000
|
||||
|
Class
3-A2
|
(13
|
)
|
$
|
221,679,000
|
$
|
25,000
|
||||
|
Class
3-AX
|
(14
|
)
|
$
|
277,099,000
|
$
|
1,000,000
|
||||
|
Class
4-A1 Underlying Interest
|
(15
|
)
|
$
|
649,329,000
|
||||||
|
Class
4-A1
|
(16
|
)
|
$
|
649,329,000
|
$
|
25,000
|
||||
-28-
|
Class
4-A2A Underlying Interest
|
(17
|
)
|
$
|
166,970,000
|
||||||
|
Class
4-A2A
|
(18
|
)
|
$
|
166,970,000
|
$
|
25,000
|
||||
|
Class
4-A2B Underlying Interest
|
(19
|
)
|
$
|
18,552,000
|
||||||
|
Class
4-A2B
|
(20
|
)
|
$
|
18,552,000
|
$
|
25,000
|
||||
|
Class
4-A3 Underlying Interest
|
(21
|
)
|
$
|
92,761,000
|
||||||
|
Class
4-A3
|
(22
|
)
|
$
|
92,761,000
|
$
|
25,000
|
||||
|
Class
4-AX
|
(23
|
)
|
$
|
463,806,000
|
$
|
1,000,000
|
||||
|
Class
4-A1A
|
(24
|
)
|
$
|
649,329,000
|
$
|
25,000
|
||||
|
Class
4-A1B
|
(25
|
)
|
$
|
649,329,000
|
$
|
25,000
|
||||
|
Class
4-A1C
|
(26
|
)
|
$
|
649,329,000
|
$
|
25,000
|
||||
|
Class
4-A1D
|
(27
|
)
|
$
|
649,329,000
|
$
|
25,000
|
||||
|
Class
4-A1E
|
(28
|
)
|
$
|
649,329,000
|
$
|
25,000
|
||||
|
Class
4-A1F
|
(29
|
)
|
$
|
649,329,000
|
$
|
25,000
|
||||
|
Class
4-A1G
|
(30
|
)
|
$
|
649,329,000
|
$
|
25,000
|
||||
|
Class
4-A1H
|
(31
|
)
|
$
|
649,329,000
|
$
|
25,000
|
||||
|
Class
4-A1IA
|
(32
|
)
|
$
|
649,329,000
|
$
|
1,000,000
|
||||
|
Class
4-A1IB
|
(33
|
)
|
$
|
649,329,000
|
$
|
1,000,000
|
||||
|
Class
4-A1IC
|
(34
|
)
|
$
|
649,329,000
|
$
|
1,000,000
|
||||
|
Class
4-A1ID
|
(35
|
)
|
$
|
649,329,000
|
$
|
1,000,000
|
||||
|
Class
4-A1IE
|
(36
|
)
|
$
|
649,329,000
|
$
|
1,000,000
|
||||
|
Class
4-A1IF
|
(37
|
)
|
$
|
649,329,000
|
$
|
1,000,000
|
||||
|
Class
4-A1IG
|
(38
|
)
|
$
|
649,329,000
|
$
|
1,000,000
|
||||
|
Class
4-A1IH
|
(39
|
)
|
$
|
649,329,000
|
$
|
1,000,000
|
||||
|
Class
M1-I
|
(40
|
)
|
$
|
17,147,000
|
$
|
100,000
|
||||
|
Class
M2-I
|
(41
|
)
|
$
|
14,861,000
|
$
|
100,000
|
||||
|
Class
M3-I
|
(42
|
)
|
$
|
8,573,000
|
$
|
100,000
|
||||
|
Class
M4-I
|
(43
|
)
|
$
|
8,573,000
|
$
|
100,000
|
||||
|
Class
M5-I
|
(44
|
)
|
$
|
7,430,000
|
$
|
100,000
|
-29-
|
Class
M6-I
|
(45
|
)
|
$
|
6,859,000
|
$
|
100,000
|
||||
|
Class
M7-I
|
(46
|
)
|
$
|
6,859,000
|
$
|
100,000
|
||||
|
Class
M8-I
|
(47
|
)
|
$
|
6,859,000
|
$
|
100,000
|
||||
|
Class
M9-I
|
(48
|
)
|
$
|
12,574,000
|
$
|
100,000
|
||||
|
Class
M1-II
|
(49
|
)
|
$
|
66,551,000
|
$
|
100,000
|
||||
|
Class
M2-II
|
(50
|
)
|
$
|
26,114,000
|
$
|
100,000
|
||||
|
Class
M3-II
|
(51
|
)
|
$
|
14,321,000
|
$
|
100,000
|
||||
|
Class
M4-II
|
(52
|
)
|
$
|
16,005,000
|
$
|
100,000
|
||||
|
Class
M5-II
|
(53
|
)
|
$
|
18,533,000
|
$
|
100,000
|
||||
|
Class
M6-II
|
(54
|
)
|
$
|
13,478,000
|
$
|
100,000
|
||||
|
Class
M7-II
|
(55
|
)
|
$
|
11,793,000
|
$
|
100,000
|
||||
|
Class
M8-II
|
(56
|
)
|
$
|
9,266,000
|
$
|
100,000
|
||||
|
Class
M9-II
|
(57
|
)
|
$
|
8,424,000
|
$
|
100,000
|
||||
|
Class
X-I
|
(58
|
)
|
(58
|
)
|
(59
|
)
|
||||
|
Class
X-II
|
(60
|
)
|
(60
|
)
|
(59
|
)
|
||||
|
Class
AP-I
|
(61
|
)
|
$
|
100
|
$
|
10
|
||||
|
Class
3-AP
|
(61
|
)
|
$
|
100
|
$
|
10
|
||||
|
Class
4-AP
|
(61
|
)
|
$
|
100
|
$
|
10
|
||||
|
Class
C-I
|
(62
|
)
|
(62
|
)
|
(59
|
)
|
||||
|
Class
C-II
|
(62
|
)
|
(62
|
)
|
(59
|
)
|
||||
|
Class
R
|
(63
|
)
|
(63
|
)
|
(59
|
)
|
| (1) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 1-A1 Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 0.300% (the “1-A1 Margin”) and
(ii) the Pool 1 Net Funds Cap for such Distribution Date; provided,
that
if the Pool 1, Pool 1C and Pool 2 Mortgage Loans and related property
are
not purchased pursuant to Section 7.01(b) on the Pool 1-2 Initial
Optional
Termination Date, then with respect to each subsequent Distribution
Date
the per annum rate calculated pursuant to clause (i) above with respect
to
the Class 1-A1 Certificates will be LIBOR plus
0.600%.
|
| (2) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 1-A2 Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 0.400% (the “1-A2 Margin”) and
(ii) the Pool 1 Net Funds Cap for such Distribution Date; provided,
that
if the Pool 1, Pool 1C and Pool 2 and related property are not purchased
pursuant to Section 7.01(b) on the Pool 1-2 Initial Optional Termination
Date, then with respect to each subsequent Distribution Date the
per annum
rate calculated pursuant to clause (i) above with respect to the
Class
1-A2 Certificates will be LIBOR plus
0.800%.
|
| (3) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 1-A3 Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 0.500% (the “1-A3 Margin”) and
(ii) the Pool 1 Net Funds Cap for such Distribution Date; provided,
that
if the Pool 1, Pool 1C and Pool 2 and related property are not purchased
pursuant to Section 7.01(b) on the Pool 1-2 Initial Optional Termination
Date, then with respect to each subsequent Distribution Date the
per annum
rate calculated pursuant to clause (i) above with respect to the
Class
1-A3 Certificates will be LIBOR plus
1.000%.
|
-30-
| (4) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 1C-A1 Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 0.300% (the “1C-A1 Margin”) and
(ii) the Pool 1C Net Funds Cap for such Distribution Date; provided,
that
if Pool 1, Pool 1C and Pool 2 and related property are not purchased
pursuant to Section 7.01(b) on the Pool 1-2 Initial Optional Termination
Date, then with respect to each subsequent Distribution Date the
per annum
rate calculated pursuant to clause (i) above with respect to the
Class
1C-A1 Certificates will be LIBOR plus
0.600%.
|
| (5) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 1C-A2 Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 0.400% (the “1C-A2 Margin”) and
(ii) the Pool 1C Net Funds Cap for such Distribution Date; provided,
that
if the Pool 1, Pool 1C and Pool 2 and related property are not purchased
pursuant to Section 7.01(b) on the Pool 1-2 Initial Optional Termination
Date, then with respect to each subsequent Distribution Date the
per annum
rate calculated pursuant to clause (i) above with respect to the
Class
1C-A2 Certificates will be LIBOR plus
0.800%.
|
| (6) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 1C-A3 Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 0.500% (the “1C-A3 Margin”) and
(ii) the Pool 1C Net Funds Cap for such Distribution Date; provided,
that
if the Pool 1, Pool 1C and Pool 2 and related property are not purchased
pursuant to Section 7.01(b) on the Pool 1-2 Initial Optional Termination
Date, then with respect to each subsequent Distribution Date the
per annum
rate calculated pursuant to clause (i) above with respect to the
Class
1C-A3 Certificates will be LIBOR plus
1.000%.
|
| (7) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 2-A1 Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 0.250% (the “2-A1 Margin”) and
(ii) the Pool 2 Net Funds Cap for such Distribution Date; provided,
that
if Pool 1, Pool 1C and Pool 2 and related property are not purchased
pursuant to Section 7.01(b) on the Pool 1-2 Initial Optional Termination
Date, then with respect to each subsequent Distribution Date the
per annum
rate calculated pursuant to clause (i) above with respect to the
Class
2-A1 Certificates will be LIBOR plus
0.500%.
|
| (8) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 2-A2 Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 0.400% (the “2-A2 Margin”) and
(ii) the Pool 2 Net Funds Cap for such Distribution Date; provided,
that
if the Pool 1, Pool 1C and Pool 2 and related property are not purchased
pursuant to Section 7.01(b) on the Pool 1-2 Initial Optional Termination
Date, then with respect to each subsequent Distribution Date the
per annum
rate calculated pursuant to clause (i) above with respect to the
Class
2-A2 Certificates will be LIBOR plus
0.800%.
|
| (9) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 2-A3 Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 0.500% (the “2-A3 Margin”) and
(ii) the Pool 2 Net Funds Cap for such Distribution Date; provided,
that
if the Pool 1, Pool 1C and Pool 2 and related property are not purchased
pursuant to Section 7.01(b) on the Pool 1-2 Initial Optional Termination
Date, then with respect to each subsequent Distribution Date the
per annum
rate calculated pursuant to clause (i) above with respect to the
Class
2-A3 Certificates will be LIBOR plus
1.000%.
|
| (10) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class AF2 Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 0.400% (the “AF2 Margin”) and
(ii) the AF2 Net Funds Cap for such Distribution Date; provided,
that if
the Pool 1, Pool 1C and Pool 2 Mortgage Loans and related property
are not
purchased pursuant to Section 7.01(b) on the Pool 1-2 Initial Optional
Termination Date, then with respect to each subsequent Distribution
Date
the per annum rate calculated pursuant to clause (i) above with respect
to
the Class AF2 Certificates will be LIBOR plus
0.800%.
|
| (11) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class AF3 Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 0.500% (the “AF3 Margin”) and
(ii) the AF3 Net Funds Cap for such Distribution Date; provided,
that if
the Pool 1, Pool 1C and Pool 2 Mortgage Loans and related property
are not
purchased pursuant to Section 7.01(b) on the Pool 1-2 Initial Optional
Termination Date, then with respect to each subsequent Distribution
Date
the per annum rate calculated pursuant to clause (i) above with respect
to
the Class AF3 Certificates will be LIBOR plus
1.000%.
|
| (12) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 3-A1 Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 0.250% (the “3-A1 Margin”) and
(ii) the Pool 3 Net Funds Cap for such Distribution Date; provided,
that
if the Pool 3 and Pool 4 Mortgage Loans and related property are
not
purchased pursuant to Section 7.01(b) on the Pool 3-4 Initial Optional
Termination Date, then with respect to each subsequent Distribution
Date
the per annum rate calculated pursuant to clause (i) above with respect
to
the Class 3-A1 Certificates will be LIBOR plus
0.500%.
|
-31-
| (13) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 3-A2 Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 0.250% (the “3-A2 Margin”) and
(ii) the Pool 3 Net Funds Cap for such Distribution Date; provided,
that
if the Pool 3 and Pool 4 Mortgage Loans and related property are
not
purchased pursuant to Section 7.01(b) on the Pool 3-4 Initial Optional
Termination Date, then with respect to each subsequent Distribution
Date
the per annum rate calculated pursuant to clause (i) above with respect
to
the Class 3-A2 Certificates will be LIBOR plus
0.500%.
|
| (14) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 3-AX Certificates is the per
annum
rate equal to the product of (A) (x) the weighted average of the
Net
Mortgage Rates for the Pool 3 Mortgage Loans as of the first day
of the
related Collection Period minus (y) the sum of (a) the product of
(i)
LIBOR plus 0.31% per annum through the Pool 3-4 Initial Optional
Termination Date or LIBOR plus 0.62% per annum after the Pool 3-4
Initial
Optional Termination Date and (ii) a fraction, the numerator of which
is
the actual number of days in the related Accrual Period for the Pool
3
Senior Certificates and the denominator of which is 30 and (b) a
fraction,
the numerator of which is (I) the product of (A) a fraction, the
numerator
of which is the actual number of days in the related Accrual Period
for
the Pool 3 Senior Certificates and the denominator of which is 30
and (B)
the applicable Premium Percentage multiplied by the Class Principal
Amount
of the Class 3-A2 Certificates, and the denominator of which is (II)
the
aggregate Class Principal Amount of the Pool 3 Senior Certificates
and (B)
100% through and including the Distribution Date in July 2009 or
20%
following the Distribution Date in July
2009.
|
| (15) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 4-A1 Underlying Interest is
the per
annum rate equal to the lesser of (i) LIBOR plus 0.900% (the “4-A1U
Margin”) and (ii) the Pool 4 Net Funds Cap for such Distribution Date;
provided, that if the Pool 3 and Pool 4 Mortgage Loans and related
property are not purchased pursuant to Section 7.01(b) on the Pool
3-4
Initial Optional Termination Date, then with respect to each subsequent
Distribution Date the per annum rate calculated pursuant to clause
(i)
above with respect to the Class 4-A1 Underlying Interest will be
LIBOR
plus 1.800%.
|
| (16) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 4-A1 Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 0.900% (the “4-A1 Margin”) and
(ii) the Pool 4 Net Funds Cap for such Distribution Date; provided,
that
if the Pool 3 and Pool 4 Mortgage Loans and related property are
not
purchased pursuant to Section 7.01(b) on the Pool 3-4 Initial Optional
Termination Date, then with respect to each subsequent Distribution
Date
the per annum rate calculated pursuant to clause (i) above with respect
to
the Class 4-A1 Certificates will be LIBOR plus
1.800%.
|
| (17) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 4-A2A Underlying Interest is
the per
annum rate equal to the lesser of (i) LIBOR plus 0.450% (the “4-A2AU
Margin”) and (ii) the Pool 4 Net Funds Cap for such Distribution Date;
provided, that if the Pool 3 and Pool 4 Mortgage Loans and related
property are not purchased pursuant to Section 7.01(b) on the Pool
3-4
Initial Optional Termination Date, then with respect to each subsequent
Distribution Date the per annum rate calculated pursuant to clause
(i)
above with respect to the Class 4-A2A Underlying Interest will be
LIBOR
plus 0.900%.
|
| (18) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 4-A2A Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 0.450% (the “4-A2A Margin”) and
(ii) the Pool 4 Net Funds Cap for such Distribution Date; provided,
that
if the Pool 3 and Pool 4 Mortgage Loans and related property are
not
purchased pursuant to Section 7.01(b) on the Pool 3-4 Initial Optional
Termination Date, then with respect to each subsequent Distribution
Date
the per annum rate calculated pursuant to clause (i) above with respect
to
the Class 4-A2A Certificates will be LIBOR plus
0.900%.
|
| (19) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 4-A2B Underlying Interest is
the per
annum rate equal to the lesser of (i) LIBOR plus 0.600% (the “4-A2BU
Margin”) and (ii) the Pool 4 Net Funds Cap for such Distribution Date;
provided, that if the Pool 3 and Pool 4 Mortgage Loans and related
property are not purchased pursuant to Section 7.01(b) on the Pool
3-4
Initial Optional Termination Date, then with respect to each subsequent
Distribution Date the per annum rate calculated pursuant to clause
(i)
above with respect to the Class 4-A2B Underlying Interest will be
LIBOR
plus 1.200%.
|
-32-
| (20) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 4-A2B Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 0.600% (the “4-A2B Margin”) and
(ii) the Pool 4 Net Funds Cap for such Distribution Date; provided,
that
if the Pool 3 and Pool 4 Mortgage Loans and related property are
not
purchased pursuant to Section 7.01(b) on the Pool 3-4 Initial Optional
Termination Date, then with respect to each subsequent Distribution
Date
the per annum rate calculated pursuant to clause (i) above with respect
to
the Class 4-A2B Certificates will be LIBOR plus
1.200%.
|
| (21) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 4-A3 Underlying Interest is
the per
annum rate equal to the lesser of (i) LIBOR plus 0.400% (the “4-A3U
Margin”) and (ii) the Pool 4 Net Funds Cap for such Distribution Date;
provided, that if the Pool 3 and Pool 4 Mortgage Loans and related
property are not purchased pursuant to Section 7.01(b) on the Pool
3-4
Initial Optional Termination Date, then with respect to each subsequent
Distribution Date the per annum rate calculated pursuant to clause
(i)
above with respect to the Class 4-A3 Underlying Interest will be
LIBOR
plus 0.800%.
|
| (22) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 4-A3 Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 0.400% (the “4-A3 Margin”) and
(ii) the Pool 4 Net Funds Cap for such Distribution Date; provided,
that
if the Pool 3 and Pool 4 Mortgage Loans and related property are
not
purchased pursuant to Section 7.01(b) on the Pool 3-4 Initial Optional
Termination Date, then with respect to each subsequent Distribution
Date
the per annum rate calculated pursuant to clause (i) above with respect
to
the Class 4-A3 Certificates will be LIBOR plus
0.800%.
|
| (23) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 4-AX Certificates is the per
annum
rate equal to the product of (A) (x) the weighted average of the
Net
Mortgage Rates for the Pool 4 Mortgage Loans as of the first day
of the
related Collection Period minus (y) the sum of (a) the product of
(i)
LIBOR plus 0.83% per annum through the Pool 3-4 Initial Optional
Termination Date or LIBOR plus 1.66% per annum after the Pool 3-4
Initial
Optional Termination Date and (ii) a fraction, the numerator of which
is
the actual number of days in the related Accrual Period for the Pool
4
Senior Certificates and the denominator of which is 30 and (b) a
fraction,
the numerator of which is (I) the product of (A) a fraction, the
numerator
of which is the actual number of days in the related Accrual Period
for
the Pool 4 Senior Certificates and the denominator of which is 30
and (B)
the applicable Premium Percentage multiplied by the Class Principal
Amount
of the Class 4-A3 Certificates, and the denominator of which is (II)
the
aggregate Class Principal Amount of the Pool 4 Senior Certificates
and (B)
100% through and including the Distribution Date in July 2009 or
20%
following the Distribution Date in July
2009.
|
| (24) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 4-A1A Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 0.800% (the “4-A1A Margin”) and
(ii) the Pool 4 Net Funds Cap for such Distribution Date; provided,
that
if the Pool 3 and Pool 4 Mortgage Loans and related property are
not
purchased pursuant to Section 7.01(b) on the Pool 3-4 Initial Optional
Termination Date, then with respect to each subsequent Distribution
Date
the per annum rate calculated pursuant to clause (i) above with respect
to
the Class 4-A1A Certificates will be LIBOR plus
1.600%.
|
| (25) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 4-A1B Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 0.700% (the “4-A1B Margin”) and
(ii) the Pool 4 Net Funds Cap for such Distribution Date; provided,
that
if the Pool 3 and Pool 4 Mortgage Loans and related property are
not
purchased pursuant to Section 7.01(b) on the Pool 3-4 Initial Optional
Termination Date, then with respect to each subsequent Distribution
Date
the per annum rate calculated pursuant to clause (i) above with respect
to
the Class 4-A1B Certificates will be LIBOR plus
1.400%.
|
| (26) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 4-A1C Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 0.600% (the “4-A1C Margin”) and
(ii) the Pool 4 Net Funds Cap for such Distribution Date; provided,
that
if the Pool 3 and Pool 4 Mortgage Loans and related property are
not
purchased pursuant to Section 7.01(b) on the Pool 3-4 Initial Optional
Termination Date, then with respect to each subsequent Distribution
Date
the per annum rate calculated pursuant to clause (i) above with respect
to
the Class 4-A1C Certificates will be LIBOR plus
1.200%.
|
-33-
| (27) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 4-A1D Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 0.500% (the “4-A1D Margin”) and
(ii) the Pool 4 Net Funds Cap for such Distribution Date; provided,
that
if the Pool 3 and Pool 4 Mortgage Loans and related property are
not
purchased pursuant to Section 7.01(b) on the Pool 3-4 Initial Optional
Termination Date, then with respect to each subsequent Distribution
Date
the per annum rate calculated pursuant to clause (i) above with respect
to
the Class 4-A1D Certificates will be LIBOR plus
1.000%.
|
| (28) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 4-A1E Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 0.400% (the “4-A1E Margin”) and
(ii) the Pool 4 Net Funds Cap for such Distribution Date; provided,
that
if the Pool 3 and Pool 4 Mortgage Loans and related property are
not
purchased pursuant to Section 7.01(b) on the Pool 3-4 Initial Optional
Termination Date, then with respect to each subsequent Distribution
Date
the per annum rate calculated pursuant to clause (i) above with respect
to
the Class 4-A1E Certificates will be LIBOR plus
0.800%.
|
| (29) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 4-A1F Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 0.300% (the “4-A1F Margin”) and
(ii) the Pool 4 Net Funds Cap for such Distribution Date; provided,
that
if the Pool 3 and Pool 4 Mortgage Loans and related property are
not
purchased pursuant to Section 7.01(b) on the Pool 3-4 Initial Optional
Termination Date, then with respect to each subsequent Distribution
Date
the per annum rate calculated pursuant to clause (i) above with respect
to
the Class 4-A1F Certificates will be LIBOR plus
0.600%.
|
| (30) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 4-A1G Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 0.250% (the “4-A1G Margin”) and
(ii) the Pool 4 Net Funds Cap for such Distribution Date; provided,
that
if the Pool 3 and Pool 4 Mortgage Loans and related property are
not
purchased pursuant to Section 7.01(b) on the Pool 3-4 Initial Optional
Termination Date, then with respect to each subsequent Distribution
Date
the per annum rate calculated pursuant to clause (i) above with respect
to
the Class 4-A1G Certificates will be LIBOR plus
0.500%.
|
| (31) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 4-A1H Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 0.200% (the “4-A1H Margin”) and
(ii) the Pool 4 Net Funds Cap for such Distribution Date; provided,
that
if the Pool 3 and Pool 4 Mortgage Loans and related property are
not
purchased pursuant to Section 7.01(b) on the Pool 3-4 Initial Optional
Termination Date, then with respect to each subsequent Distribution
Date
the per annum rate calculated pursuant to clause (i) above with respect
to
the Class 4-A1H Certificates will be LIBOR plus
0.400%.
|
| (32) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 4-A1IA Certificates is the
per annum
rate equal to the lesser of (i) 0.100% and (ii) the excess of the
Pool 4
Net Funds Cap over the Interest Rate on the Class 4-A1A Certificates
for
such Distribution Date; provided, that if the Pool 3 and Pool 4 Mortgage
Loans and related property are not purchased pursuant to Section
7.01(b)
on the Pool 3-4 Initial Optional Termination Date, then with respect
to
each subsequent Distribution Date the per annum rate calculated pursuant
to clause (i) above with respect to the Class 4-A1IA Certificates
will be
0.200%.
|
| (33) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 4-A1IB Certificates is the
per annum
rate equal to the lesser of (i) 0.200% and (ii) the excess of the
Pool 4
Net Funds Cap over the Interest Rate on the Class 4-A1B Certificates
for
such Distribution Date; provided, that if the Pool 3 and Pool 4 Mortgage
Loans and related property are not purchased pursuant to Section
7.01(b)
on the Pool 3-4 Initial Optional Termination Date, then with respect
to
each subsequent Distribution Date the per annum rate calculated pursuant
to clause (i) above with respect to the Class 4-A1IB Certificates
will be
0.400%.
|
| (34) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 4-A1IC Certificates is the
per annum
rate equal to the lesser of (i) 0.300% and (ii) the excess of the
Pool 4
Net Funds Cap over the Interest Rate on the Class 4-A1C Certificates
for
such Distribution Date; provided, that if the Pool 3 and Pool 4 Mortgage
Loans and related property are not purchased pursuant to Section
7.01(b)
on the Pool 3-4 Initial Optional Termination Date, then with respect
to
each subsequent Distribution Date the per annum rate calculated pursuant
to clause (i) above with respect to the Class 4-A1IC Certificates
will be
0.600%.
|
| (35) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 4-A1ID Certificates is the
per annum
rate equal to the lesser of (i) 0.400% and (ii) the excess of the
Pool 4
Net Funds Cap over the Interest Rate on the Class 4-A1D Certificates
for
such Distribution Date; provided, that if the Pool 3 and Pool 4 Mortgage
Loans and related property are not purchased pursuant to Section
7.01(b)
on the Pool 3-4 Initial Optional Termination Date, then with respect
to
each subsequent Distribution Date the per annum rate calculated pursuant
to clause (i) above with respect to the Class 4-A1ID Certificates
will be
0.800%.
|
-34-
| (36) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 4-A1IE Certificates is the
per annum
rate equal to the lesser of (i) 0.500% and (ii) the excess of the
Pool 4
Net Funds Cap over the Interest Rate on the Class 4-A1E Certificates
for
such Distribution Date; provided, that if the Pool 3 and Pool 4 Mortgage
Loans and related property are not purchased pursuant to Section
7.01(b)
on the Pool 3-4 Initial Optional Termination Date, then with respect
to
each subsequent Distribution Date the per annum rate calculated pursuant
to clause (i) above with respect to the Class 4-A1IE Certificates
will be
1.000%.
|
| (37) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 4-A1IF Certificates is the
per annum
rate equal to the lesser of (i) 0.600% and (ii) the excess of the
Pool 4
Net Funds Cap over the Interest Rate on the Class 4-A1F Certificates
for
such Distribution Date; provided, that if the Pool 3 and Pool 4 Mortgage
Loans and related property are not purchased pursuant to Section
7.01(b)
on the Pool 3-4 Initial Optional Termination Date, then with respect
to
each subsequent Distribution Date the per annum rate calculated pursuant
to clause (i) above with respect to the Class 4-A1IF Certificates
will be
1.200%.
|
| (38) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 4-A1IG Certificates is the
per annum
rate equal to the lesser of (i) 0.650% and (ii) the excess of the
Pool 4
Net Funds Cap over the Interest Rate on the Class 4-A1G Certificates
for
such Distribution Date; provided, that if the Pool 3 and Pool 4 Mortgage
Loans and related property are not purchased pursuant to Section
7.01(b)
on the Pool 3-4 Initial Optional Termination Date, then with respect
to
each subsequent Distribution Date the per annum rate calculated pursuant
to clause (i) above with respect to the Class 4-A1IG Certificates
will be
1.300%.
|
| (39) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class 4-A1IH Certificates is the
per annum
rate equal to the lesser of (i) 0.700% and (ii) the excess of the
Pool 4
Net Funds Cap over the Interest Rate on the Class 4-A1H Certificates
for
such Distribution Date; provided, that if the Pool 3 and Pool 4 Mortgage
Loans and related property are not purchased pursuant to Section
7.01(b)
on the Pool 3-4 Initial Optional Termination Date, then with respect
to
each subsequent Distribution Date the per annum rate calculated pursuant
to clause (i) above with respect to the Class 4-A1IH Certificates
will be
1.400%.
|
| (40) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class M1-I Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 1.000% (the “M1-I Margin”) and
(ii) the Group I Subordinate Net Funds Cap for such Distribution
Date;
provided, that if the Pool 1, Pool 1C and Pool 2 Mortgage Loans and
related property are not purchased pursuant to Section 7.01(b) on
the Pool
1-2 Initial Optional Termination Date, then with respect to each
subsequent Distribution Date the per annum rate calculated pursuant
to
clause (i) above with respect to the Class M1-I Certificates will
be LIBOR
plus 1.500%.
|
| (41) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class M2-I Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 1.250% (the “M2-I Margin”) and
(ii) the Group I Subordinate Net Funds Cap for such Distribution
Date;
provided, that if the Pool 1, Pool 1C and Pool 2 Mortgage Loans and
related property are not purchased pursuant to Section 7.01(b) on
the Pool
1-2 Initial Optional Termination Date, then with respect to each
subsequent Distribution Date the per annum rate calculated pursuant
to
clause (i) above with respect to the Class M2-I Certificates will
be LIBOR
plus 1.875%.
|
| (42) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class M3-I Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 1.500% (the “M3-I Margin”) and
(ii) the Group I Subordinate Net Funds Cap for such Distribution
Date;
provided, that if the Pool 1, Pool 1C and Pool 2 Mortgage Loans and
related property are not purchased pursuant to Section 7.01(b) on
the Pool
1-2 Initial Optional Termination Date, then with respect to each
subsequent Distribution Date the per annum rate calculated pursuant
to
clause (i) above with respect to the Class M3-I Certificates will
be LIBOR
plus 2.250%.
|
| (43) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class M4-I Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 1.750% (the “M4-I Margin”) and
(ii) the Group I Subordinate Net Funds Cap for such Distribution
Date;
provided, that if the Pool 1, Pool 1C and Pool 2 Mortgage Loans and
related property are not purchased pursuant to Section 7.01(b) on
the Pool
1-2 Initial Optional Termination Date, then with respect to each
subsequent Distribution Date the per annum rate calculated pursuant
to
clause (i) above with respect to the Class M4-I Certificates will
be LIBOR
plus 2.625%.
|
-35-
| (44) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class M5-I Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 1.750% (the “M5-I Margin”) and
(ii) the Group I Subordinate Net Funds Cap for such Distribution
Date;
provided, that if the Pool 1, Pool 1C and Pool 2 Mortgage Loans and
related property are not purchased pursuant to Section 7.01(b) on
the Pool
1-2 Initial Optional Termination Date, then with respect to each
subsequent Distribution Date the per annum rate calculated pursuant
to
clause (i) above with respect to the Class M5-I Certificates will
be LIBOR
plus 2.625%.
|
| (45) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class M6-I Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 1.750% (the “M6-I Margin”) and
(ii) the Group I Subordinate Net Funds Cap for such Distribution
Date;
provided, that if the Pool 1, Pool 1C and Pool 2 Mortgage Loans and
related property are not purchased pursuant to Section 7.01(b) on
the Pool
1-2 Initial Optional Termination Date, then with respect to each
subsequent Distribution Date the per annum rate calculated pursuant
to
clause (i) above with respect to the Class M6-I Certificates will
be LIBOR
plus 2.625%.
|
| (46) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class M7-I Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 1.750% (the “M7-I Margin”) and
(ii) the Group I Subordinate Net Funds Cap for such Distribution
Date;
provided, that if the Pool 1, Pool 1C and Pool 2 Mortgage Loans and
related property are not purchased pursuant to Section 7.01(b) on
the Pool
1-2 Initial Optional Termination Date, then with respect to each
subsequent Distribution Date the per annum rate calculated pursuant
to
clause (i) above with respect to the Class M7-I Certificates will
be LIBOR
plus 2.625%.
|
| (47) |
The
Class M8-I Certificates are principal-only certificates and will
not be
entitled to any distributions of
interest.
|
| (48) |
The
Class M9-I Certificates are principal-only certificates and will
not be
entitled to any distributions of
interest.
|
| (49) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class M1-II Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 0.800% (the “M1-II Margin”) and
(ii) the Group II Subordinate Net Funds Cap for such Distribution
Date;
provided, that if the Pool 3 and Pool 4 Mortgage Loans and related
property are not purchased pursuant to Section 7.01(b) on the Pool
3-4
Initial Optional Termination Date, then with respect to each subsequent
Distribution Date the per annum rate calculated pursuant to clause
(i)
above with respect to the Class M1-II Certificates will be LIBOR
plus
1.200%.
|
| (50) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class M2-II Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 1.000% (the “M2-II Margin”) and
(ii) the Group II Subordinate Net Funds Cap for such Distribution
Date;
provided, that if the Pool 3 and Pool 4 Mortgage Loans and related
property are not purchased pursuant to Section 7.01(b) on the Pool
3-4
Initial Optional Termination Date, then with respect to each subsequent
Distribution Date the per annum rate calculated pursuant to clause
(i)
above with respect to the Class M2-II Certificates will be LIBOR
plus
1.500%.
|
| (51) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class M3-II Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 1.500% (the “M3-II Margin”) and
(ii) the Group II Subordinate Net Funds Cap for such Distribution
Date;
provided, that if the Pool 3 and Pool 4 Mortgage Loans and related
property are not purchased pursuant to Section 7.01(b) on the Pool
3-4
Initial Optional Termination Date, then with respect to each subsequent
Distribution Date the per annum rate calculated pursuant to clause
(i)
above with respect to the Class M3-II Certificates will be LIBOR
plus
2.250%.
|
| (52) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class M4-II Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 1.750% (the “M4-II Margin”) and
(ii) the Group II Subordinate Net Funds Cap for such Distribution
Date;
provided, that if the Pool 3 and Pool 4 Mortgage Loans and related
property are not purchased pursuant to Section 7.01(b) on the Pool
3-4
Initial Optional Termination Date, then with respect to each subsequent
Distribution Date the per annum rate calculated pursuant to clause
(i)
above with respect to the Class M4-II Certificates will be LIBOR
plus
2.625%.
|
| (53) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class M5-II Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 1.750% (the “M5-II Margin”) and
(ii) the Group II Subordinate Net Funds Cap for such Distribution
Date;
provided, that if the Pool 3 and Pool 4 Mortgage Loans and related
property are not purchased pursuant to Section 7.01(b) on the Pool
3-4
Initial Optional Termination Date, then with respect to each subsequent
Distribution Date the per annum rate calculated pursuant to clause
(i)
above with respect to the Class M5-II Certificates will be LIBOR
plus
2.625%.
|
-36-
| (54) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class M6-II Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 1.750% (the “M6-II Margin”) and
(ii) the Group II Subordinate Net Funds Cap for such Distribution
Date;
provided, that if the Pool 3 and Pool 4 Mortgage Loans and related
property are not purchased pursuant to Section 7.01(b) on the Pool
3-4
Initial Optional Termination Date, then with respect to each subsequent
Distribution Date the per annum rate calculated pursuant to clause
(i)
above with respect to the Class M6-II Certificates will be LIBOR
plus
2.625%.
|
| (55) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class M7-II Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 1.750% (the “M7-II Margin”) and
(ii) the Group II Subordinate Net Funds Cap for such Distribution
Date;
provided, that if the Pool 3 and Pool 4 Mortgage Loans and related
property are not purchased pursuant to Section 7.01(b) on the Pool
3-4
Initial Optional Termination Date, then with respect to each subsequent
Distribution Date the per annum rate calculated pursuant to clause
(i)
above with respect to the Class M7-II Certificates will be LIBOR
plus
2.625%.
|
| (56) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class M8-II Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 1.750% (the “M8-II Margin”) and
(ii) the Group II Subordinate Net Funds Cap for such Distribution
Date;
provided, that if the Pool 3 and Pool 4 Mortgage Loans and related
property are not purchased pursuant to Section 7.01(b) on the Pool
3-4
Initial Optional Termination Date, then with respect to each subsequent
Distribution Date the per annum rate calculated pursuant to clause
(i)
above with respect to the Class M8-II Certificates will be LIBOR
plus
2.625%.
|
| (57) |
The
Certificate Interest Rate with respect to any Distribution Date (and
the
related Accrual Period) for the Class M9-II Certificates is the per
annum
rate equal to the lesser of (i) LIBOR plus 1.750% (the “M9-II Margin”) and
(ii) the Group II Subordinate Net Funds Cap for such Distribution
Date;
provided, that if the Pool 3 and Pool 4 Mortgage Loans and related
property are not purchased pursuant to Section 7.01(b) on the Pool
3-4
Initial Optional Termination Date, then with respect to each subsequent
Distribution Date the per annum rate calculated pursuant to clause
(i)
above with respect to the Class M9-II Certificates will be LIBOR
plus
2.625%.
|
| (58) |
For
purposes of the REMIC Provisions, the X-I Component of the Class
X-I
Certificates shall have an initial principal balance equal to the
excess
of the Cut-off Date Balance of Mortgage Group I over the aggregate
initial
Certificate Principal Amounts of the Group I Certificates. For each
Distribution Date, the X-I Component of the Class X-I Certificates
shall
be entitled to the X-I Component Current Interest. Unpaid interest
on the
X-I Component of the Class X-I Certificates shall not itself bear
interest. The S-X Component of the Class X-I Certificates shall represent
an interest-only regular interest in REMIC I-2 and shall represent
beneficial ownership of the Supplemental Interest Trust Account,
including
the Swap Agreement. For purposes of the REMIC Provisions, the C-X
Component of the Class X-I Certificates shall represent beneficial
ownership of the Interest Rate Cap Agreement. For purposes of the
REMIC
Provisions, the Class X-I Certificates shall also represent beneficial
ownership of (i) the Pool 1-2 Basis Risk Reserve Fund, (ii) an interest
in
certain notional principal contracts described in Section 10.01 hereof
and
(iii) the right to receive FPD Premiums and EPD Premiums with respect
to
Pool 1, Pool 1C and Pool 2.
|
| (59) |
The
Class X-I, Class X-II, Class C-I and Class C-II Certificates will
each be
issued in minimum Percentage Interests of 10% and increments of 1%
thereafter. The Cass R Certificate will be issued as a single Certificate
evidencing the entire Percentage Interest in such
Class.
|
| (60) |
For
purposes of the REMIC Provisions, the X-II Certificates shall have
an
initial principal balance equal to the excess of the Cut-off Date
Balance
of Mortgage Group II over the aggregate initial Certificate Principal
Amounts of the Group II Certificates. For each Distribution Date,
the
Class X-II Certificates shall be entitled to the Class X-II Current
Interest. Unpaid interest on the Class X-II Certificates shall not
itself
bear interest. For purposes of the REMIC Provisions, the Class X-II
Certificates shall also represent beneficial ownership of (i) the
Pool 3-4
Basis Risk Reserve Fund and (ii) an interest in certain notional
principal
contracts described in Section 10.01
hereof.
|
| (61) |
The
Class AP-I Certificates will be entitled to receive Prepayment Premiums
paid by borrowers upon voluntary full or partial prepayment of the
Pool 1,
Pool 1C and Pool 2 Mortgage Loans. The Class 3-AP Certificates will
be
entitled to receive Prepayment Premiums paid by borrowers upon voluntary
full or partial prepayment of the Pool 3 Mortgage Loans. The Class
4-AP
Certificates will be entitled to receive Prepayment Premiums paid
by
borrowers upon voluntary full or partial prepayment of the Pool 4
Mortgage
Loans.
|
-37-
| (62) |
The
Class C-I Certificates will be issued without a Certificate Principal
Amount and will not bear interest at a stated rate. The Class C-I
Certificates shall be entitled to receive all reinvestment income
on
amounts on deposit in the X-I Component Account and amounts on deposit
in
the X-I Component Account on the Distribution Date as described herein
as
provided in Section 5.02(i). The Class C-II Certificates will be
issued
without a Certificate Principal Amount and will not bear interest
at a
stated rate. The Class C-II Certificates shall be entitled to receive
all
reinvestment income on amounts on deposit in the Class X-II Account
and
amounts on deposit in the Class X-II Account on the Distribution
Date as
described herein as provided in Section 5.02(j).
|
| (63) |
The
Class R Certificate will be issued without a Certificate Principal
Amount
and will not bear interest at a stated rate. The Class R Certificate
represents ownership of the residual interest in each
REMIC.
|
As
of the
Cut-off Date, the Mortgage Loans had an aggregate Scheduled Principal Balance
of
$2,828,002,465.
In
consideration of the mutual agreements herein contained, the Depositor, the
Seller, the Master Servicer and the Trustee hereby agree as
follows:
ARTICLE
I.
DEFINITIONS
Section
1.01. Definitions.
The
following words and phrases, unless the context otherwise requires, shall have
the following meanings:
10-K
Filing Deadline:
As
defined in Section 6.20(d)(i).
1-A1
Margin:
As
defined in footnote (1) of the Preliminary Statement under the caption “The
Certificates.”
1-A2
Margin:
As
defined in footnote (2) of the Preliminary Statement under the caption “The
Certificates.”
1-A3
Margin:
As
defined in footnote (3) of the Preliminary Statement under the caption “The
Certificates.”
1C-A1
Margin:
As
defined in footnote (4) of the Preliminary Statement under the caption “The
Certificates.”
1C-A2
Margin:
As
defined in footnote (5) of the Preliminary Statement under the caption “The
Certificates.”
1C-A3
Margin:
As
defined in footnote (6) of the Preliminary Statement under the caption “The
Certificates.”
-38-
2-A1
Margin:
As
defined in footnote (7) of the Preliminary Statement under the caption “The
Certificates.”
2-A2
Margin:
As
defined in footnote (8) of the Preliminary Statement under the caption “The
Certificates.”
2-A3
Margin:
As
defined in footnote (9) of the Preliminary Statement under the caption “The
Certificates.”
3-A1
Margin:
As
defined in footnote (12) of the Preliminary Statement under the caption “The
Certificates.”
3-A2
Margin:
As
defined in footnote (13) of the Preliminary Statement under the caption “The
Certificates.”
4-A1U
Margin:
As
defined in footnote (15) of the Preliminary Statement under the caption “The
Certificates.”
4-A1
Margin:
As
defined in footnote (16) of the Preliminary Statement under the caption “The
Certificates.”
4-A2AU
Margin:
As
defined in footnote (17) of the Preliminary Statement under the caption “The
Certificates.”
4-A2A
Margin:
As
defined in footnote (18) of the Preliminary Statement under the caption “The
Certificates.”
4-A2BU
Margin:
As
defined in footnote (19) of the Preliminary Statement under the caption “The
Certificates.”
4-A2B
Margin:
As
defined in footnote (20) of the Preliminary Statement under the caption “The
Certificates.”
4-A3U
Margin:
As
defined in footnote (21) of the Preliminary Statement under the caption “The
Certificates.”
4-A3
Margin:
As
defined in footnote (22) of the Preliminary Statement under the caption “The
Certificates.”
Accepted
Servicing Practices:
With
respect to any Mortgage Loan, as applicable, either (x) those customary mortgage
servicing practices of prudent mortgage servicing institutions that service
or
master service mortgage loans of the same type and quality as such Mortgage
Loan
in the jurisdiction where the related Mortgaged Property is located, to the
extent applicable to the Trustee (as successor master servicer) or the Master
Servicer or (y) as provided in the applicable Servicing Agreement, to the extent
applicable to the related Servicer.
-39-
Accountant:
A
person engaged in the practice of accounting who (except when this Agreement
provides that an Accountant must be Independent) may be employed by or
affiliated with the Depositor or an Affiliate of the Depositor.
Accrual
Period:
For the
LIBOR Certificates and the Grantor Trust Certificates for each Distribution
Date, the period beginning on the immediately preceding Distribution Date (or
from July 25, 2007 in the case of the first Distribution Date or July 31, 2007
in the case of the Class 3-AX and Class 4-AX Certificates) and ending on the
day
immediately preceding the related Distribution Date. The LIBOR Certificates
and
the Grantor Trust Certificates shall accrue interest on the basis of a 360-day
year and the actual number of days in each Accrual Period; all calculations
of
interest on the Notional Certificates will be made on the basis of a 360-day
year consisting of twelve 30-day months.
Act:
As
defined in Section 3.03(c).
Additional
Form 10-D Disclosure:
As
defined in Section 6.20(c)(i).
Additional
Form 10-K Disclosure:
As
defined in Section 6.20(d)(i).
Additional
Servicer:
Each
affiliate of each Servicer that Services any of the Mortgage Loans and each
Person who is not an affiliate of the any Servicer, who Services 10% or more
of
the Mortgage Loans.
Additional
Termination Event:
As
defined in the Swap Agreement.
Advance:
An
advance of the aggregate of payments of principal and interest (net of the
General Servicing Fee or the Servicing Fee, as applicable) on one or more
Mortgage Loans that were due on the Due Date in the related Collection Period
and not received as of the close of business on the related Determination Date,
required to be made by the Servicers or, with respect to the Mortgage Loans
Serviced by GMACM, GreenPoint and SunTrust, by the Master Servicer (or by the
Trustee as successor master servicer) pursuant to Section 5.04.
Adverse
REMIC Event:
Either
(i) loss of status as a REMIC, within the meaning of Section 860D of the Code,
for any group of assets identified as a REMIC in the Preliminary Statement
to
this Agreement, or (ii) imposition of any tax, including the tax imposed under
Section 860F(a)(1) on prohibited transactions, and the tax imposed under Section
860G(d) on certain contributions to a REMIC, on any REMIC created
hereunder.
AF2
Margin: As defined in footnote (10) of the Preliminary Statement under the
caption “The Certificates.”
AF2
Net Funds Cap: For each Distribution Date, an annual rate equal to (a) a
fraction, expressed as a percentage, the numerator of which is the sum of all
current interest payable to the Class 1-A2, Class 1C-A2 and Class 2-A2
Certificates for such Distribution Date and the denominator of which is the
Class Principal Amount of the Class AF2 Certificates immediately prior to that
Distribution Date multiplied by (b) a fraction, the numerator of which is 360
and the denominator of which is the actual number of days in the Accrual Period
related to such Distribution Date.
AF3
Margin: As
defined in footnote (11) of the Preliminary Statement under the caption “The
Certificates.”
AF3
Net Funds Cap: For each Distribution Date, an annual rate equal to (a) a
fraction, expressed as a percentage, the numerator of which is the sum of all
current interest payable to the Class 1-A3, Class 1C-A3 and Class 2-A3
Certificates for such Distribution Date and the denominator of which is the
Class Principal Amount of the Class AF3 Certificates immediately prior to that
Distribution Date multiplied by (b) a fraction, the numerator of which is 360
and the denominator of which is the actual number of days in the Accrual Period
related to such Distribution Date.
-40-
Affected
Party:
As
defined in the Swap Agreement.
Affiliate:
With
respect to any specified Person, any other Person controlling or controlled
by
or under common control with such specified Person. For the purposes of this
definition, “control” when used with respect to any specified Person means the
power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract
or
otherwise; and the terms “controlling” and “controlled” have meanings
correlative to the foregoing.
Aggregate
Voting Interests:
The
aggregate of the Voting Interests of all the Certificates under this
Agreement.
Agreement:
This
Trust Agreement and all amendments and supplements hereto.
Applicants:
As
defined in Section 8.02(b).
Applied
Loss Amount:
The
aggregate of the Pool 1-2 Applied Loss Amount and the Pool 3-4 Applied Loss
Amount.
Apportioned
Principal Balance:
For any
Class of Group I Subordinate Certificates for any Distribution Date, the Class
Principal Amount of that Class immediately prior to that Distribution Date
multiplied by a fraction, the numerator of which is the applicable Pool
Subordinate Amount for that date and the denominator of which is the sum of
the
Pool Subordinate Amounts for each of Pool 1, Pool 1C and Pool 2 for that date.
For any Class of Group II Subordinate Certificates for any Distribution Date,
the Class Principal Amount of that Class immediately prior to that Distribution
Date multiplied by a fraction, the numerator of which is the applicable Pool
Subordinate Amount for that date and the denominator of which is the sum of
the
Pool Subordinate Amounts for each of Pool 3 and Pool 4 for that
date.
Appraised
Value:
With
respect to any Mortgage Loan, the amount set forth in an appraisal made in
connection with the origination of such Mortgage Loan as the value of the
related Mortgaged Property.
Assignment
of Mortgage:
An
assignment of the Mortgage, notice of transfer or equivalent instrument, in
recordable form, sufficient under the laws of the jurisdiction wherein the
related Mortgaged Property is located to reflect the sale of the Mortgage to
the
Trustee, which assignment, notice of transfer or equivalent instrument may
be in
the form of one or more blanket assignments covering the Mortgage Loans secured
by Mortgaged Properties located in the same jurisdiction, if permitted by law;
provided, however, that neither the Custodian nor the Trustee shall be
responsible for determining whether any such assignment is in recordable
form.
-41-
Aurora:
Aurora
Loan Services LLC or its successors in interest.
Authenticating
Agent:
Any
authenticating agent appointed by the Trustee pursuant to Section
6.10.
Authorized
Officer:
Not
applicable.
Back-Up
Certification:
As
defined in Section 6.20(d)(iv).
Balance
Guaranteed Cap Agreement:
Not
applicable.
Balance
Guaranteed Cap Account:
Not
applicable.
Balloon
Mortgage Loan:
Any
Mortgage Loan having an original term to maturity that is shorter than its
amortization schedule, and a final Scheduled Payment that is disproportionately
large in comparison to other Scheduled Payments.
Balloon
Payment:
The
final Scheduled Payment in respect of a Balloon Mortgage Loan.
Bankruptcy:
As to
any Person, the making of an assignment for the benefit of creditors, the filing
of a voluntary petition in bankruptcy, adjudication as a bankrupt or insolvent,
the entry of an order for relief in a bankruptcy or insolvency proceeding,
the
seeking of reorganization, arrangement, composition, readjustment, liquidation,
dissolution or similar relief, or seeking, consenting to or acquiescing in
the
appointment of a trustee, receiver or liquidator, dissolution, or termination,
as the case may be, of such Person pursuant to the provisions of either the
Bankruptcy Code, or any other similar state laws.
Bankruptcy
Code:
The
United States Bankruptcy Code of 1986, as amended.
Basis
Risk Payment:
Not
applicable.
Basis
Risk Reserve Fund:
Not
applicable.
Basis
Risk Shortfall:
With
respect to any Distribution Date and any Class of LIBOR Certificates (other
than
the Class M8-I and Class M9-I Certificates), the amount by which the amount
of
interest calculated at the Certificate Interest Rate applicable to such Class
for such date, determined without regard to the applicable Net Funds Cap for
such date but, in the case of the Group II Certificates, subject to a cap equal
to the applicable Maximum Interest Rate, exceeds the amount of interest
calculated at the applicable Net Funds Cap. Notwithstanding the foregoing,
the
amount of any Basis Risk Shortfall for any class of Group II Certificates in
respect of any Distribution Date may not exceed the amount, if any, by which
(x)
the amount payable at the applicable Maximum Interest Rate exceeds (y) the
amount payable at the applicable Net Funds Cap.
-42-
Benefit
Plan Opinion:
Not
applicable.
Book-Entry
Certificates:
Beneficial interests in Certificates designated as “Book-Entry Certificates” in
this Agreement, ownership and transfers of which shall be evidenced or made
through book entries by a Clearing Agency as described in Section 3.09;
provided, that after the occurrence of a condition whereupon book-entry
registration and transfer are no longer permitted and Definitive Certificates
are to be issued to Certificate Owners, such Book-Entry Certificates shall
no
longer be “Book-Entry Certificates.” As of the Closing Date, the Offered
Certificates and the Privately Offered Certificates constitute Book-Entry
Certificates.
Bulk
PMI Policy:
Not
applicable.
Business
Day:
Any day
other than (i) a Saturday or a Sunday, (ii) a day on which banking institutions
in New York City, New York or, if other than New York City, the city in which
the Corporate Trust Office of the Trustee is located and the States of Colorado,
Massachusetts, Minnesota or New York or the city in which the executive office
of the Certificate Insurer is located are closed, or (iii) with respect to
the
Servicer Remittance Date or the Servicer reporting date, the States specified
in
the definition of “Business Day” in the Servicing Agreements, are authorized or
obligated by law or executive order to be closed.
C-X
Component:
The
portion of the Class X-I Certificates representing the right to distributions
to
the Class X-I Certificates from the Interest Rate Cap Agreement.
Cap
Deferred Interest Amount:
As of
any Distribution Date and with respect to each Class of Grantor Trust
Certificates, the amount, if any, of Net Negative Amortization allocated to
the
related Underlying Interest, as applicable, to the extent covered by a previous
payment made by the Deferred Interest Cap Provider and not previously paid
to
the Deferred Interest Cap Provider.
Cap
Payment Date:
For so
long as any Interest Rate Cap Agreement or Deferred Interest Cap Agreement
is in
effect or any amounts remain unpaid thereunder, the Business Day prior to each
Distribution Date.
Cap
Provider:
Either
of the Interest Rate Cap Provider or the Deferred Interest Cap
Provider.
Cap
Termination Payment:
Upon an
optional termination pursuant to Section 7.01(b) and to the extent such payments
or amounts are related to the Mortgage Pool or Mortgage Pools being terminated,
any payment required to be made to the applicable Cap Provider or by the
applicable Cap Provider to the Trustee pursuant to the terms of the Interest
Rate Cap Agreement or applicable Deferred Interest Cap Agreement, and any unpaid
amounts due on previous Cap Payment Dates and accrued interest thereon as
provided in the Interest Rate Cap Agreement or applicable Deferred Interest
Cap
Agreement, as calculated by the applicable Cap Provider and furnished to the
Trustee.
Capitalized
Interest Account:
Not
applicable.
Capitalized
Interest Amount:
Not
applicable.
-43-
Carryforward
Interest:
With
respect to any Distribution Date and any Class of LIBOR Certificates (other
than
the Class M8-I and Class M9-I Certificates), Notional Certificates or Grantor
Trust Certificates, the sum of (i) the amount, if any, by which (x) the sum
of
(A) Current Interest for such Class for the immediately preceding Distribution
Date and (B) any unpaid Carryforward Interest for such Class from previous
Distribution Dates exceeds (y) the amount distributed in respect of interest
on
such Class on such immediately preceding Distribution Date, and (ii) interest
on
such amount (other than, in the case of the Class 3-AX and Class 4-AX
Certificates, any portion of such amount resulting from Net Negative
Amortization) for the related Accrual Period at the applicable Certificate
Interest Rate. Carryforward Interest shall not include amounts attributable
to
an allocation of Net Negative Amortization (except in the case of the Class
3-AX
and Class 4-AX Certificates).
Certificate:
Any one
of the certificates signed and countersigned by the Trustee in substantially
the
forms attached hereto as Exhibit A and any Underlying Interest.
Certificate
Account:
The
account maintained by the Trustee in accordance with the provisions of Section
4.04.
Certificate
Insurance Policy:
The
Certificate Guaranty Insurance Policy No. AB1081BE, dated the Closing Date,
including any endorsements thereto issued by the Certificate Insurer to the
Trustee for the benefit of the Holders of the Guaranteed Certificates, a form
of
which is attached as Exhibit M hereto.
Certificate
Insurer:
Ambac
Assurance Corporation, or any successor thereto.
Certificate
Insurer Default:
The
occurrence and continuance of any of the following events:
(a) the
Certificate Insurer shall have failed to make a payment required to be made
under the Certificate Insurance Policy in accordance with its
terms;
(b) the
Certificate Insurer shall have (i) filed a petition or commenced a case or
proceeding under any provision or chapter of the Bankruptcy Code or any other
similar federal or state law relating to insolvency, bankruptcy, rehabilitation,
liquidation or reorganization, (ii) made a general assignment for the benefit
of
its creditors, or (iii) had an order for relief entered against it under the
Bankruptcy Code or any other similar federal or state law relating to
insolvency, bankruptcy, rehabilitation, liquidation or reorganization that
is
final and nonappealable; or
(c) a
court
of competent jurisdiction, the Office of the Commissioner of Insurance of the
State of New York or other competent regulatory authority shall have entered
a
final and nonappealable order, judgment or decree (i) appointing a custodian,
trustee, agent or receiver for the Certificate Insurer or for all or any
material portion of its property or (ii) authorizing the taking of possession
by
a custodian, trustee, agent or receiver of the Certificate Insurer (or the
taking of possession of all or any material portion of the property of the
Certificate Insurer).
-44-
Certificate
Insurer Premium:
With
respect to any Distribution Date, an amount equal to the product of (a) the
sum
of the Class Principal Amounts of the Class 3-A2 or Class 4-A3 Certificates,
as
applicable, as of such Distribution Date (prior to giving effect to any
distributions thereon on such Distribution Date) and (b) the applicable Premium
Percentage, multiplied by the actual number of days in the Accrual Period
(treating, solely for purposes of such calculation, the initial Accrual Period
as beginning on the Closing Date and ending on the day immediately preceding
the
initial Distribution Date), and divided by 360.
Certificate
Interest Rate:
With
respect to each Class of Certificates and any Distribution Date, the applicable
per annum rate set forth or described in the Preliminary Statement
hereto.
Certificate
Owner:
With
respect to a Book-Entry Certificate, the Person who is the owner of such
Book-Entry Certificate, as reflected on the books of the Clearing Agency, or
on
the books of a Person maintaining an account with such Clearing Agency (directly
or as an indirect participant, in accordance with the rules of such Clearing
Agency).
Certificate
Principal Amount:
With
respect to any Certificate (other than the Class C-I, Class C-II, Class X-I,
Class X-II, Notional Certificates and Class R Certificates) and any Distribution
Date, the initial Certificate Principal Amount thereof on the Closing Date,
less
the amount of all principal distributions previously distributed with respect
to
such Certificate prior to such Distribution Date, in the case of any Group
I
Certificate, as reduced by any Pool 1-2 Applied Loss Amount or, in the case
of
any Group II Certificate, as reduced by any Pool 3-4 Applied Loss Amount,
previously allocated thereto, plus, in the case of any Negative Amortization
Certificate, any Net Negative Amortization allocated thereto on previous
Distribution Dates; provided, however, that on each Distribution Date on which
a
Subsequent Recovery is distributed, the Certificate Principal Amount of any
Group I Certificate that has been reduced by application of a Pool 1-2 Applied
Loss Amount or the Certificate Principal Amount of any Group II Certificate
that
has been reduced by application of a Pool 3-4 Applied Loss Amount will be
increased, in order of seniority, by an amount (to be applied pro
rata
to all
Certificates of such Class) equal to the lesser of (1) any Deferred Amount
for
each such Class immediately prior to such date and (2) (a) in the case of the
holders of Group I Certificates, the total amount of any Subsequent Recovery
related to Pool 1, Pool 1C or Pool 2 distributed on such date to
Certificateholders, after application (for this purpose) to more senior Classes
of such Certificates and (b) in the case of the holders of Group II
Certificates, the total amount of any Subsequent Recovery related to Pool 3
or
Pool 4 distributed on such date to Certificateholders, after application (for
this purpose) to more senior Classes of such Certificates; provided, further,
that to the extent that any Applied Loss Amount was reimbursed under the
Certificate Insurance Policy, any Subsequent Recovery otherwise payable on
the
Guaranteed Certificates shall instead be payable to the Certificate Insurer.
The
Class C-I, Class C-II, Class X-I, Class X-II and Class R Certificates are issued
without Certificate Principal Amounts.
Certificate
Register and Certificate Registrar:
The
register maintained and the registrar appointed pursuant to Section
3.02.
Certificateholder:
The
meaning provided in the definition of “Holder.”
Certification
Parties:
As
defined in Section 6.20(d)(iv).
-45-
Certifying
Person:
As
defined in Section 6.20(d)(iv).
Class:
All
Certificates (and, in the case of each REMIC, all interests) bearing the same
Class designation.
Class
3-AP Reserve Fund:
As
defined in Section 5.11(a).
Class
4-AP Reserve Fund:
As
defined in Section 5.11(a).
Class
AP-I Reserve Fund:
As
defined in Section 5.11(a).
Class
C-I Distributable Amount:
For
each Distribution Date on and prior to the Distribution Date occurring on the
X-I Component Account Termination Date, an amount equal to the lesser of (a)
aggregate investment earnings on the X-I Component Account for the related
Collection Period and (b) the amount on deposit in the X-I Component Account
on
such Distribution Date, after taking into account any payments made from the
X-I
Component Account on such Distribution Date to the Class X-I Certificates.
On
the Distribution Date occurring on the X-I Component Account Termination Date,
an amount equal to the entire amount remaining on deposit in the X-I Component
Account after making the payments set forth in the preceding
sentence.
Class
C-II Distributable Amount:
For
each Distribution Date on and prior to the Distribution Date occurring on the
Class X-II Account Termination Date, an amount equal to the lesser of (a)
aggregate investment earnings on the Class X-II Account for the related
Collection Period and (b) the amount on deposit in the Class X-II Account on
such Distribution Date, after taking into account any payments made from the
Class X-II Account on such Distribution Date to the Class X-II Certificates.
On
the Distribution Date occurring on the Class X-II Account Termination Date,
an
amount equal to the entire amount remaining on deposit in the Class X-II Account
after making the payments set forth in the preceding sentence.
Class
C-I Mortgage Loan:
Any
Pool 1 Mortgage Loan, Pool 1C Mortgage Loan or Pool 2 Mortgage Loan that has
become a Liquidated Mortgage Loan on or prior to the Collection Period ending
on
March 1, 2010.
Class
C-II Mortgage Loan:
Any
Pool 3 Mortgage Loan or Pool 4 Mortgage Loan that has become a Liquidated
Mortgage Loan on or prior to the Collection Period ending on March 1,
2010.
Class
4-A1 Grantor Trust:
The
Grantor Trust formed pursuant to this Agreement, the assets of which consist
of
(i) the Class 4-A1 Underlying Interest and (ii) the related Deferred Interest
Cap Agreement and Deferred Interest Cap Account. For federal income tax
purposes, the Class 4-A1 Underlying Interest represents the aggregate of the
rights corresponding to each of the Underlying 4-A1 REMIC Certificates
(disregarding the portions thereof relating to any Deferred Interest Cap
Agreement and Deferred Interest Cap Account).
Class
4-A1 Underlying Interest:
The
Underlying Interest related to the Class 4-A1 Certificates.
-46-
Class
4-A2A Grantor Trust:
The
Grantor Trust formed pursuant to this Agreement, the assets of which consist
of
(i) the Class 4-A2A Underlying Interest and (ii) the related Deferred Interest
Cap Agreement and Deferred Interest Cap Account.
Class
4-A2A Underlying Interest:
The
Underlying Interest related to the Class 4-A2A Certificates.
Class
4-A2B Grantor Trust:
The
Grantor Trust formed pursuant to this Agreement, the assets of which consist
of
(i) the Class 4-A2B Underlying Interest and (ii) the related Deferred Interest
Cap Agreement and Deferred Interest Cap Account.
Class
4-A2B Underlying Interest:
The
Underlying Interest related to the Class 4-A2B Certificates.
Class
4-A3 Grantor Trust:
The
Grantor Trust formed pursuant to this Agreement, the assets of which consist
of
(i) the Class 4-A3 Underlying Interest and (ii) the related Deferred Interest
Cap Agreement and Deferred Interest Cap Account.
Class
4-A3 Underlying Interest:
The
Underlying Interest related to the Class 4-A3 Certificates.
Class
CX Excess Cap Amount:
Not
applicable.
Class
I-I Shortfalls:
As
defined in Section 10.01(n) hereof.
Class
I-II Shortfalls:
As
defined in Section 10.01(n) hereof.
Class
M Certificates:
Any of
the Subordinate Certificates.
Class
Notional Amount:
With
respect to the Class 3-AX Certificates for any Distribution Date, an amount
equal to 50% of the aggregate Class Principal Amounts of the Pool 3 Senior
Certificates (other than the Class 3-AX Certificates) immediately prior to
such
Distribution Date. The initial Class Notional Amount of the Class 3-AX
Certificates is $277,099,000. With respect to the Class 4-AX Certificates for
any Distribution Date, an amount equal to 50% of the aggregate Class Principal
Amount of the Class 4-A1 Underlying Interest, Class 4-A2A Underlying Interest,
Class 4-A2B Underlying Interest and Class 4-A3 Underlying Interest immediately
prior to such Distribution Date. The initial Class Notional Amount of the Class
4-AX Certificates is $463,806,000.
Class
P Certificate:
Any
Class AP-I, Class 3-AP or Class 4-AP Certificate.
Class
P Reserve Funds: The Class
AP-I Reserve
Fund, 3-AP
Reserve
Fund and Class 4-AP Reserve Fund.
Class
Principal Amount:
With
respect to each Class of Certificates other than the Class C-I, Class C-II,
Class X-I, Class X-II or Class R Certificates, the aggregate of the Certificate
Principal Amounts (or related Percentage Interest therein aggregating to 100%)
of all Certificates of such Class at the date of determination. With respect
to
the Class C-I, Class C-II, Class X-I, Class X-II or Class R Certificates,
zero.
-47-
Class
R Certificate:
The
Class R Certificate executed by the Trustee, and authenticated and delivered
by
the Certificate Registrar, substantially in the form annexed hereto as Exhibit
A
and evidencing the ownership of the residual interest in each REMIC created
hereunder.
Class
X Certificate:
Any
Class X-I or Class X-II Certificate.
Class
X-II Account:
An
account established as part of the Trust Fund pursuant to Section 5.12 of this
Agreement but which is not an asset of any of the REMICs for the benefit of
the
Class X-II Certificates and the Class C-I Certificates.
Class
X-II Account Termination Date:
The
Distribution Date in March 2010.
Class
X-II Current Interest:
For any
Distribution Date, the interest accrued during the related Accrual Period on
the
Class X-II Notional Balance at the Class X-II Interest Rate.
Class
X-II Distributable Amount:
On any
Distribution Date, the excess of (i) the sum of (x) the excess of (1) the
aggregate Cut-off Date Balance for Mortgage Group II over (2) the aggregate
initial principal amounts of the Group II Certificates, (y) the aggregate Class
X-II Current Interest for such Distribution Date and all prior Distribution
Dates and (z) amounts treated as received by the Class X-II Certificates in
respect of Class I-II Shortfalls described in Section 10.01(n) over (ii) the
sum
of (w) the aggregate payments in respect of Excess Interest for the Group II
Certificates for such Distribution Date and all prior Distribution Dates and
(x)
all prior distributions to the Class X-II Certificate under Section 5.02(g)(vi)
hereof.
Class
X-II Interest Rate:
For any
Distribution Date, the excess of (i) the weighted average of the interest rates
on the REMIC II-1 Regular Interests (other than the Class LTII1-3AX Interest
and
the Class LTII1-4AX Interest) over (ii) two times the weighted average of the
interest rates on the REMIC II-1I Marker Classes and the Class LTII1-XI Interest
(treating for purposes of this clause (ii) the interest rate on each of the
REMIC II-1I Marker Classes as being subject to a cap and a floor equal to the
interest rate of the Related REMIC II-2 Interest of the Corresponding Classes
of
Certificates (as adjusted, if necessary, to reflect accruals on an “actual/360”
basis) and treating the interest rate on the Class LTII1-XI Interest as capped
at zero). The average described in the preceding sentence shall be weighted
on
the basis of the respective principal balances of the REMIC II-1 Regular
Interests immediately prior to such Distribution Date.
Class
X-II Notional Balance:
With
respect to any Distribution Date (and the related Accrual Period), the aggregate
principal balance of the REMIC II-1 Regular Interests (other than the Class
LTII1-3AX Interest and the Class LTII1-4AX Interest) immediately prior to such
Distribution Date.
Class
XI Current Interest:
Not
applicable.
Class
XI Distributable Amount:
Not
applicable.
-48-
Class
XI Interest Rate:
Not
applicable.
Class
XI Notional Balance:
Not
applicable.
Clearing
Agency:
An
organization registered as a “clearing agency” pursuant to Section 17A of the
Exchange Act. As of the Closing Date, the Clearing Agency shall be The
Depository Trust Company.
Clearing
Agency Participant:
A
broker, dealer, bank, other financial institution or other Person for whom
from
time to time a Clearing Agency effects book entry transfers and pledges of
securities deposited with the Clearing Agency.
Clearstream:
Clearstream Banking Luxembourg, and any successor thereto.
Closing
Date:
July
31, 2007.
Code:
The
Internal Revenue Code of 1986, as amended, and as it may be further amended
from
time to time, any successor statutes thereto, and applicable U.S. Department
of
Treasury regulations issued pursuant thereto in temporary or final
form.
Collection
Account:
A
separate account established and maintained by the Master Servicer pursuant
to
Section 4.01.
Collection
Period:
With
respect to any Distribution Date, the period commencing on the second day of
the
month immediately preceding the month in which such Distribution Date occurs
and
ending on the first day of the month in which such Distribution Date
occurs.
Combination
Group:
Any
combination(s) of Exchange Certificates set forth on Appendix A to the Exchange
Trust Agreement.
Commission:
The
Securities and Exchange Commission.
Commitment
Letter:
The
Commitment Letter dated as of July 31, 2007 between the Depositor and the
Certificate Insurer.
Compensating
Interest Payment:
With
respect to any Distribution Date and prepayments in full or in part, an amount
equal the aggregate amount of any Prepayment Interest Shortfalls required to
be
paid by the Servicers or, with respect to the Mortgage Loans serviced by GMACM,
GreenPoint and SunTrust, by the Master Servicer with respect to such
Distribution Date up to an amount equal to the aggregate of the Servicing Fees
received on the Mortgage Loans serviced by it (or up to an amount equal to
the
General Servicing Fee with respect to the Master Servicer).
Component:
Not
applicable.
Component
Interest Rate:
Not
applicable.
Component
Principal Amount:
Not
applicable.
-49-
Conventional
Loan:
Not
applicable.
Cooperative
Corporation:
The
entity that holds title (fee or an acceptable leasehold estate) to the real
property and improvements constituting the Cooperative Property and which
governs the Cooperative Property, which Cooperative Corporation must qualify
as
a Cooperative Housing Corporation under Section 216 of the Code.
Cooperative
Loan:
Any
Mortgage Loan secured by Cooperative Shares and a Proprietary
Lease.
Cooperative
Loan Documents:
As to
any Cooperative Loan, (i) the Cooperative Shares, together with a stock power
in
blank; (ii) the original executed Security Agreement and the assignment of
the
Security Agreement endorsed in blank; (iii) the original executed Proprietary
Lease and the assignment of the Proprietary Lease endorsed in blank; (iv) the
original executed Recognition Agreement and the assignment of the Recognition
Agreement (or a blanket assignment of all Recognition Agreements) endorsed
in
blank; (v) the executed UCC-1 financing statement with evidence of recording
thereon, which has been filed in all places required to perfect the security
interest in the Cooperative Shares and the Proprietary Lease; and (vi) executed
UCC-3 financing statements (or copies thereof) or other appropriate UCC
financing statements required by state law, evidencing a complete and unbroken
line from the mortgagee to the Trustee with evidence of recording thereon (or
in
a form suitable for recordation).
Cooperative
Property:
The
real property and improvements owned by the Cooperative Corporation, that
includes the allocation of individual dwelling units to the holders of the
Cooperative Shares of the Cooperative Corporation.
Cooperative
Shares:
Shares
issued by a Cooperative Corporation.
Cooperative
Unit:
A
single-family dwelling located in a Cooperative Property.
Corporate
Trust Office:
The
principal corporate trust office of the Trustee is located at U.S. Bank National
Association, One Federal Street, 3rd Floor, Boston, M.A. 02110, Attention:
LXS
2007-15N.
Corresponding
Class:
For any
REMIC I-1 Interest, the Class of Certificates listed opposite such REMIC I-1
Interest in the table entitled “REMIC I-1” in the Preliminary Statement hereto.
For any REMIC II-1 Interest, the Class of Certificates listed opposite such
REMIC II-1 Interest in the table entitled “REMIC II-1” in the Preliminary
Statement hereto.
Credit
Score:
Not
applicable.
Cumulative
Loss Trigger Event:
Not
applicable.
Current
Interest:
With
respect to any Class of LIBOR Certificates (other than the Class M8-I and Class
M9-I Certificates), Notional Certificates or Grantor Trust Certificates and
any
Distribution Date, the aggregate amount of interest accrued at the applicable
Certificate Interest Rate during the related Accrual Period on the Class
Principal Amount or Class Notional Amount
of
such Class immediately prior to such Distribution Date minus the Net Negative
Amortization, if any, allocated to that Class for that Distribution Date in
accordance with Section 5.02.
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Custodial
Account:
Any
custodial account (other than an Escrow Account) established and maintained
by
the applicable Servicer pursuant to the applicable Servicing
Agreement.
Custodial
Agreement:
The
custodial agreement attached as Exhibit K hereto, and any custodial agreement
subsequently executed by the Trustee and acknowledged by the Master Servicer
substantially in the form thereof.
Custodian(s):
Any
custodian appointed by the Trustee pursuant to a Custodial Agreement, and any
successor thereto. The initial Custodians are Deutsche Bank National Trust
Company, U.S. Bank National Association, Xxxxx Fargo Bank, N.A. and LaSalle
Bank
National Association.
Cut-off
Date:
With
respect to all Mortgage Loans, July 1, 2007.
Cut-off
Date Balance:
With
respect to the Mortgage Loans in a Mortgage Pool on the Closing Date, the Pool
Balance as of the Cut-off Date.
Debt
Service Reduction:
With
respect to any Mortgage Loan, a reduction of the Scheduled Payment that the
related Mortgagor is obligated to pay on any Due Date as a result of, or in
connection with, any proceeding under Bankruptcy law or any similar
proceeding.
Defaulting
Party:
As
defined in the Swap Agreement.
Deferred
Amount:
For
each Distribution Date and for each Class of LIBOR Certificates, the sum of
(A)
the amount by which (x) the aggregate of Pool 1-2 Applied Loss Amounts (in
the
case of any Group I Certificate) or Pool 3-4 Applied Loss Amounts (in the case
of any Group II Certificate) previously applied in reduction of the Class
Principal Amount thereof exceeds (y) the sum of (1) the aggregate of amounts
previously distributed in reimbursement thereof and (2) the amount by which
the
Class Principal Amount of such Class has been increased due to any Subsequent
Recovery and (B) for the Group
I
Senior Certificates
and
Group II Senior Certificates only, interest accrued on the related amount
calculated under clause (A); provided, however, that any Applied Loss Amount
allocated to the Class 3-A2 and Class 4-A3 Certificates will not be considered
a
Deferred Amount to the extent such amounts are paid by the Certificate Insurer
as part of a Guaranteed Distribution.
Deferred
Interest Cap Account:
Each of
the separate Eligible Accounts created and initially maintained by the Trustee
entitled: “Class 4-A1 Deferred Interest Cap Account, U.S. Bank National
Association, as Trustee, in trust for the benefit of the Holders of Xxxxxx
XS
Trust Mortgage Pass-Through Certificates, Series 2007-15N,” “Class 4-A2A
Deferred Interest Cap Account, U.S. Bank National Association, as Trustee,
in
trust for the benefit of the Holders of Xxxxxx XS Trust Mortgage Pass-Through
Certificates, Series 2007-15N,” “Class 4-A2B Deferred Interest Cap Account, U.S.
Bank National Association, as Trustee, in trust for the benefit of the Holders
of Xxxxxx XS Trust Mortgage Pass-Through Certificates, Series 2007-15N” and
“Class 4-A3 Deferred Interest Cap Account, U.S. Bank National Association, as
Trustee, in trust for the benefit of the Holders of Xxxxxx XS Trust Mortgage
Pass-Through Certificates, Series 2007-15N.”
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Deferred
Interest Cap Agreement:
With
respect to each Class of Grantor Trust Certificates, the transaction evidenced
by a confirmation between the Trustee and the Deferred Interest Cap Provider
in
the form attached as Exhibit P.
Deferred
Interest Cap Provider:
Xxxxxx
Brothers Special Financing Inc.
Deficient
Valuation:
With
respect to any Mortgage Loan, a valuation by a court of competent jurisdiction
of the Mortgaged Property in an amount less than the then outstanding
indebtedness under such Mortgage Loan, which valuation results from a proceeding
under Bankruptcy law or any similar proceeding.
Definitive
Certificate:
A
Certificate of any Class issued in definitive, fully registered, certificated
form.
Deleted
Loan REMIC:
Not
applicable.
Deleted
Loan REMIC Interest:
Not
applicable.
Deleted
Loan REMIC Regular Interest:
Not
applicable.
Deleted
Mortgage Loan:
A
Mortgage Loan that is repurchased from the Trust Fund pursuant to the terms
hereof or as to which one or more Qualifying Substitute Mortgage Loans are
substituted therefor.
Delinquency
Event:
Not
applicable.
Delinquency
Rate:
Not
applicable.
Delinquent:
For
reporting purposes, a Mortgage Loan is “delinquent” when any payment
contractually due thereon has not been made by the close of business on the
Due
Date therefor. Such Mortgage Loan is “30 days Delinquent” if such payment has
not been received by the close of business on the corresponding day of the
month
immediately succeeding the month in which such payment was first due, or, if
there is no such corresponding day (e.g., as when a 30-day month follows a
31-day month in which a payment was due on the 31st day of such month), then
on
the last day of such immediately succeeding month. Similarly for “60 days
Delinquent” and the second immediately succeeding month and “90 days Delinquent”
and the third immediately succeeding month.
Deposit
Date:
With
respect to each Distribution Date, the Business Day immediately preceding such
Distribution Date.
Depositor:
Structured Asset Securities Corporation, a Delaware corporation, having its
principal place of business in New York, or its successors in
interest.
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Determination
Date:
With
respect to each Distribution Date, the 18th day of the month in which such
Distribution Date occurs, or, if such 18th day is not a Business Day, the next
succeeding Business Day.
Disqualified
Organization:
A
“disqualified organization” as defined in Section 860E(e)(5) of the
Code.
Distressed
Mortgage Loan:
Any
Mortgage Loan that at the date of determination is Delinquent in payment for
a
period of more than 90 days or more without giving effect to any grace period
permitted by the relevant Mortgage Note or for which the Servicer has accepted
a
deed in lieu of foreclosure.
Distribution
Date:
The
25th day of each month or, if such 25th day is not a Business Day, the next
succeeding Business Day, commencing in August 2007.
DTC:
As
defined in Section 3.01(c).
Due
Date:
With
respect to any Mortgage Loan, the date on which a Scheduled Payment is due
under
the related Mortgage Note.
Due
for Payment:
With
respect to an Insured Amount, the Distribution Date on which Insured Amounts
are
due and payable pursuant to the terms of this Agreement; with respect to a
Preference Amount, the Business Day on which the documentation required by
the
Certificate Insurer (as specified in the Certificate Insurance Policy) has
been
received by the Certificate Insurer.
Early
Payment Default Mortgage Loan:
Any
Mortgage Loan originated by Xxxxxx Brothers Bank, FSB specified in Section
1.04
of the Mortgage Loan Sale Agreement in respect to which the related Mortgagor
does not make the first or second payment due to the Seller within the time
frame required under such section.
Eligible
Account:
Either
(i) an account or accounts maintained with a federal or state chartered
depository institution or trust company acceptable to the Rating Agencies or
(ii) an account at a depository institution or trust company whose commercial
paper or other short term debt obligations (or, in the case of a depository
institution or trust company which is the principal subsidiary of a holding
company, the commercial paper or other short term debt or deposit obligations
of
such holding company or depository institution, as the case may be) have been
rated by each Rating Agency in its highest short-term rating category, or (iii)
a segregated trust account or accounts (which shall be a “special deposit
account”) maintained with the Trustee or any other federal or state chartered
depository institution or trust company, acting in its fiduciary capacity,
in a
manner acceptable to the Trustee, any NIMS Insurer and the Rating Agencies.
Eligible Accounts may bear interest.
Eligible
Investments:
Any one
or more of the following obligations or securities:
(i) direct
obligations of, and obligations fully guaranteed as to timely payment of
principal and interest by, the United States of America or any agency or
instrumentality of the United States of America the obligations of which are
backed by the full faith and credit of the United States of America (“Direct
Obligations”);
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(ii) federal
funds, or demand and time deposits in, certificates of deposits of, or bankers’
acceptances issued by, any depository institution or trust company (including
U.S. subsidiaries of foreign depositories and the Trustee or any agent of the
Trustee, acting in its respective commercial capacity) incorporated or organized
under the laws of the United States of America or any state thereof and subject
to supervision and examination by federal or state banking authorities, so
long
as at the time of investment or the contractual commitment providing for such
investment the commercial paper or other short term debt obligations of such
depository institution or trust company (or, in the case of a depository
institution or trust company which is the principal subsidiary of a holding
company, the commercial paper or other short term debt or deposit obligations
of
such holding company or deposit institution, as the case may be) have been
rated
by each Rating Agency in its highest short-term rating category or one of its
two highest long-term rating categories;
(iii) repurchase
agreements collateralized by Direct Obligations or securities guaranteed by
Xxxxxx Xxx, Xxxxxx Xxx or Xxxxxxx Mac with any registered broker/dealer subject
to Securities Investors’ Protection Corporation jurisdiction or any commercial
bank insured by the FDIC, if such broker/dealer or bank has an uninsured,
unsecured and unguaranteed obligation rated by each Rating Agency in its highest
short-term rating category;
(iv) securities
bearing interest or sold at a discount issued by any corporation incorporated
under the laws of the United States of America or any state thereof which have
a
credit rating from each Rating Agency, at the time of investment or the
contractual commitment providing for such investment, at least equal to one
of
the two highest short term credit rating categories of each Rating Agency (or
the highest short term credit rating of each rating agency, with respect to
the
X-I Component Account and the Class X-II Account); provided, however,
that securities issued by any particular corporation will not be Eligible
Investments to the extent that investment therein will cause the then
outstanding principal amount of securities issued by such corporation and held
as part of the Trust Fund to exceed 20% of the sum of the Pool Balance and
the
aggregate principal amount of all Eligible Investments in the Certificate
Account; provided, further, that such securities will not be Eligible
Investments if they are published as being under review with negative
implications from any Rating Agency;
(v) commercial
paper (including both non-interest-bearing discount obligations and interest
bearing obligations payable on demand or on a specified date not more than
180
days after the date of issuance thereof) rated by each Rating Agency in its
highest short-term rating category;
(vi) a
Qualified GIC;
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(vii) certificates
or receipts representing direct ownership interests in future interest or
principal payments on obligations of the United States of America or its
agencies or instrumentalities (which obligations are backed by the full faith
and credit of the United States of America) held by a custodian in safekeeping
on behalf of the holders of such receipts; and
(viii) any
other
demand, money market, common trust fund or time deposit or obligation, or
interest bearing or other security or investment (including those managed or
advised by the Trustee or any Affiliate thereof), (A) rated in the highest
rating category by each Rating Agency or (B) that would not adversely affect
the
then current rating assigned by each Rating Agency of any of the Certificates
(in the case of the Guaranteed Certificates, determined without regard to the
Certificate Insurance Policy) or the NIM Securities and has a short-term rating
of at least “A-1” or its equivalent by each Rating Agency. Such investments in
this subsection (viii) may include money market mutual funds or common trust
funds, including any fund for which U.S. Bank National Association, in its
capacity other than as Trustee, the Master Servicer or an affiliate thereof
serves as an investment advisor, administrator, shareholder, servicing agent,
and/or custodian or subcustodian, notwithstanding that (x) U.S. Bank National
Association, the Trustee, the Master Servicer or any affiliate thereof charges
and collects fees and expenses from such funds for services rendered, (y) U.S.
Bank National Association, the Trustee, the Master Servicer, or any affiliate
thereof charges and collects fees and expenses for services rendered pursuant
to
this Agreement, and (z) services performed for such funds and pursuant to this
Agreement may converge at any time. U.S. Bank National Association or an
affiliate thereof is hereby authorized to charge and collect from the Trust
Fund
such fees as are collected from all investors in such funds for services
rendered to such funds (but not to exceed investment earnings thereon);
provided, however, that no such instrument shall be an Eligible Investment
if
such instrument evidences either (i) a right to receive only interest payments
with respect to the obligations underlying such instrument, or (ii) both
principal and interest payments derived from obligations underlying such
instrument and the principal and interest payments with respect to such
instrument provide a yield to maturity of greater than 120% of the yield to
maturity at par of such underlying obligations, and provided further that in
order to be an Eligible Investment any such investment must be a “permitted
investment” within the meaning of Section 860G(a)(5) of the Code.
EPD
Premium:
With
respect to any Early Payment Default Mortgage Loan purchased by the Seller
from
Xxxxxx Brothers Bank, FSB, the excess, if any of the EPD Purchase Price over
the
Purchase Price for such Mortgage Loan.
EPD
Purchase Price:
With
respect to any Early Payment Default Mortgage Loan, an amount equal to the
sum
of (a) 101.50% of the unpaid principal balance of such Mortgage Loan and (b)
accrued interest thereon at the applicable Mortgage Rate from the date as to
interest was last paid (but not including) the Due Date in the Collection period
immediately preceding the related Distribution Date.
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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 would satisfy
the requirements of the Underwriter’s Exemption, except, in relevant part, for
the requirement that the certificates have received a rating at the time of
acquisition that is in one of the three (or four, in the case of a “designated
transaction”) highest generic rating categories by at least one of the Rating
Agencies.
ERISA-Restricted
Certificate:
Any
Class C-I, Class C-II, Class 3-C, Class AP-I, Class 3-AP, Class 4-AP, Class
X-I
or Class X-II Certificate and any other Certificate as long as the acquisition
and holding of such other Certificate is not covered by and exempt under the
Underwriter’s Exemption.
Errors
and Omission Insurance Policy:
The
errors or omission insurance policy required to be obtained by the Servicers
satisfying the requirements of the Servicing Agreements.
Escrow
Account:
As
defined in Section 9.06(a).
Euroclear:
Euroclear Bank, S.A./N.V., as operator of the Euroclear System.
Event
of Default:
Any one
of the conditions or circumstances enumerated in Section 6.14(a).
Excess
Interest:
On any
Distribution Date, (i) for each Class of Group I Certificates (other than the
Class M8-I and Class M9-I Certificates), the excess, if any, of (1) the amount
of interest such Class of Certificates is entitled to receive on such
Distribution Date over (2) the amount of interest such Class of Certificates
would have been entitled to receive on such Distribution Date at an interest
rate equal to the applicable REMIC Pass-Through Rate; (ii) for each Class of
Group II Certificates (other than the Class 3-AX Certificates, Class 4-AX
Certificates and the Class 4-A1 Underlying Interest), the excess, if any, of
(1)
the amount of interest such Class of Certificates is entitled to receive on
such
Distribution Date over (2) the amount of interest such Class of Certificates
would have been entitled to receive on such Distribution Date at an interest
rate equal to the applicable REMIC Pass-Through Rate; (iii) for the Class 3-AX
Certificates, the excess, if any, of (1) the amount of interest such Class
of
Certificates is entitled to receive on such Distribution Date over (2) the
amount of interest attributable to accruals on the Class LTII11-3AX Interest;
(iv) for the Class 4-AX Certificates, the excess, if any, of (1) the amount
of
interest such Class of Certificates is entitled to receive on such Distribution
Date over (2) the amount of interest attributable to accruals on the Class
LTII11-4AX Interest; (iv) for the Class 4-A1 Underlying Interest, the aggregate
of the Excess Interest with respect to the Underlying 4-A1 REMIC Certificates
for such Distribution Date, (v) for the Class 4-A1 Underlying Interest, the
aggregate Excess Interest with respect to each of the Underlying 4-A1 REMIC
Certificates for such Distribution Date, (vi) for each of the Underlying 4-A1
REMIC Certificates (other than the Underlying 4A1 Interest), the excess, if
any,
of (1) the amount distributable on such Underlying 4-A1 REMIC Certificate for
such Distribution Date (determined as the difference between the relative
amounts distributable on two Exchange Classes or Exchangeable Classes that
share
the same Related Underlying REMIC Certificates except for such Underlying 4-A1
REMIC Certificate) (disregarding amounts treated as paid or received under
any
Deferred Interest Cap Agreement and disregarding amounts treated as received
from the Master Servicer as described in Section 10.01(p)) over (2) the amount
distributable on the REMIC II-11 Interest that such Underlying 4-A1 REMIC
Certificate represents; and (vii) for the Underlying 4A1 Interest, the excess,
if any, of (1) the amount of interest that would have been distributable with
respect to the Class LTII11-4A1 Interest on such Distribution Date by
substituting “Pool 4 Net Funds Cap” for “Pool 4 Senior REMIC Cap” in its
interest rate over (2) the amount of interest distributable with respect to
the
Class LTII11-4A1 Interest on such Distribution Date.
-56-
Excess
Principal Allocation Percentage: For any Distribution Date and for Pool 1,
Pool 1C and Pool 2 (other than any such Mortgage Pool for which the Class
Principal Amounts of each class of the related Group I Senior Certificates
have
been reduced to zero), the fraction, expressed as a percentage, the numerator
of
which is the excess, if any, of (i) the aggregate of the Class Principal Amounts
of the related Group I Senior Certificates immediately prior to such
Distribution Date over (ii) the Principal Distribution Amount for such Mortgage
Pool for such Distribution Date and the denominator of which is the sum of
(i)
such numerator and (ii) the amount that such numerator would equal if computed
with reference to the other Mortgage Pools for which the Class Principal Amounts
of each class of the related Group I Senior Certificates have not been reduced
to zero.
Exchange
Act:
The
Securities Exchange Act of 1934, as amended.
Exchange
Act Signing Party:
Either
the Depositor or the Master Servicer, to be determined by mutual agreement
between such parties.
Exchange
Class
or
Exchange
Certificates:
The
Classes of Certificates identified as such, and issued under, the Exchange
Trust
Agreement.
Exchangeable
Classes
or
Exchangeable
Certificates:
The
Classes of Certificates identified as such, and issued under, the Exchange
Trust
Agreement.
Exchange
Trust Agreement:
The
Exchange Trust Agreement dated as of July 1, 2007, entered into by and among
the
Depositor and the Trustee for the issuance of the Exchange and Exchangeable
Certificates, a form of which is attached hereto as Exhibit L.
Exchange
Trustee:
U.S.
Bank National Association, in its capacity as trustee under the Exchange Trust
Agreement.
Xxxxxx
Xxx:
Xxxxxx
Xxx, f/k/a 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.
FDIC:
The
Federal Deposit Insurance Corporation or any successor thereto.
Fidelity
Bond:
The
fidelity bond required to be obtained by each Servicer satisfying the
requirements of the related Servicing Agreement.
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Final
Scheduled Distribution Date:
With
respect to the Group I Certificates, the Distribution Date in August 2037 and
with respect to the Group II Certificates, the Distribution Date in August
2047.
Financial
Intermediary:
Not
applicable.
First
Payment Default Mortgage Loan:
Any
Mortgage Loan originated by Xxxxxx Brothers Bank, FSB specified in Section
1.04
of the Mortgage Loan Sale Agreement in respect to which the related Mortgagor
does not make the first payment due to the Seller within the time frame required
under such section.
Fitch:
Fitch Ratings, Inc.
Form
8-K Disclosure Information:
As
defined in Section 6.20(e)(i).
FPD
Premium:
With
respect to any First Payment Default Mortgage Loan purchased by the Seller
from
Xxxxxx Brothers Bank, FSB, the excess, if any of the FPD Purchase Price over
the
Purchase Price for such Mortgage Loan.
FPD
Purchase Price:
With
respect to any First Payment Default Mortgage Loan, an amount equal to the
sum
of (a) 101.50% of the unpaid principal balance of such Mortgage Loan and (b)
accrued interest thereon at the applicable Mortgage Rate from the date as to
interest was last paid (but not including) the Due Date in the Collection period
immediately preceding the related Distribution Date.
Xxxxxxx
Mac:
Xxxxxxx
Mac, f/k/a 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.
Funding
Account:
Not
applicable.
Funding
Amount:
Not
applicable.
General
Servicing Fee:
With
respect to any Distribution Date and each Mortgage Loan serviced by GMACM,
GreenPoint and SunTrust, an amount equal to the product of (a) one-twelfth
of
the General Servicing Fee Rate and (b) the outstanding principal balance of
such
Mortgage Loan as of the first day of the related Collection Period.
General
Servicing Fee Rate:
0.375%
per annum.
Xxxxxx
Mae:
Xxxxxx
Xxx, f/k/a the Government National Mortgage Association, a wholly owned
corporate instrumentality of the United States within HUD.
Global
Securities:
The
global certificates representing the Book-Entry Certificates.
GMACM:
GMAC Mortgage, LLC or
its
successors in interest.
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Grantor
Trust:
Each of
the “grantor trusts” (within the meaning of the Grantor Trust Provisions)
described in Section 10.01 or established pursuant to Section 5.02(m)
herein.
Grantor
Trust Available Funds:
For any
Distribution Date and each of the Grantor Trusts established pursuant to Section
5.02(m), the sum, without duplication, of:
(i) any
payments received on the applicable Underlying Interest on that Distribution
Date;
(ii) any
payments received by the Trustee from the Deferred Interest Cap Provider under
the related Deferred Interest Cap Agreement on the Business Day prior to that
Distribution Date; and
(iii) all
other
assets of the Class 4-A1 Grantor Trust, Class 4-A2A Grantor Trust, Class 4-A2B
Grantor Trust or Class 4-A3 Grantor Trust, as applicable, following the payments
(solely out of such other assets) of amounts to reimburse the Trustee for its
related reimbursable expenses.
Grantor
Trust Certificates:
The
Class 4-A1, Class 4-A2A, Class 4-A2B and Class 4-A3 Certificates.
Grantor
Trust Provisions:
Subpart
E of Subchapter J of the Code, including Treasury regulation section
301.7701-4(c)(2).
GreenPoint:
GreenPoint Mortgage Funding, Inc. or its successors in interest.
Group
I Certificates:
The
Group I Senior Certificates and Group I Subordinate Certificates.
Group
I Senior Certificates:
The
Pool 1 Senior Certificates, Pool 1C Senior Certificates and Pool 2 Senior
Certificates.
Group
I Subordinate Certificates:
The
Class M1-I, Class M2-I, Class M3-I, Class M4-I, Class M5-I, Class M6-I, Class
M7-I, Class M8-I and Class M9-I Certificates.
Group
I Subordinate Net Funds Cap:
For
each Distribution Date and the Class M1-I, Class M2-I, Class M3-I, Class M4-I,
Class M5-I, Class M6-I and Class M7-I Certificates, the weighted average of
the
Pool 1 Net Funds Cap, Pool 1C Net Funds Cap and the Pool 2 Net Funds Cap
weighted on the basis of the Pool Subordinate Amount for each such Mortgage
Pool
multiplied by a fraction, the numerator of which is the beginning Class
Principal Amounts of the Class M1-I, Class M2-I, Class M3-I, Class M4-I, Class
M5-I, Class M6-I, Class M7-I, Class M8-I and Class M9-I Certificates, and the
denominator of which is the sum of the beginning Class Principal Amounts of
the
Class M1-I, Class M2-I, Class M3-I, Class M4-I, Class M5-I, Class M6-I and
Class
M7-I Certificates for such Distribution Date.
Group
I Subordinate Priority:
Distributions to the Class M1-I, Class M2-I, Class M3-I, Class M4-I, Class
M5-I,
Class M6-I, Class M7-I, Class M8-I and Class M9-I Certificates, sequentially,
in
that order.
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Group
II Certificates:
The
Group II Senior Certificates and Group II Subordinate Certificates.
Group
II Senior Certificates:
The
Pool 3 Senior Certificates and Pool 4 Senior Certificates.
Group
II Subordinate Certificates:
The
Class M1-II, Class M2-II, Class M3-II, Class M4-II, Class M5-II, Class M6-II,
Class M7-II, Class M8-II and Class M9-II Certificates.
Group
II Subordinate Maximum Interest Rate:
For
each Distribution Date, the weighted average the Pool 3 Maximum Interest Rate
and the Pool 4 Maximum Interest Rate weighted on the basis of the Pool
Subordinate Amount for each such Mortgage Pool and calculated without regard
to
clause (2) of the definitions of Pool 3 Net Funds Cap and Pool 4 Net Funds
Cap.
Group
II Subordinate Priority:
Distributions to the Class M1-II, Class M2-II, Class M3-II, Class M4-II, Class
M5-II, Class M6-II, Class M7-II, Class M8-II and Class M9-II Certificates,
sequentially, in that order.
Guaranteed
Certificates:
The
Class 3-A2 and Class 4-A3 Certificates.
Guaranteed
Distribution:
With
respect to the Guaranteed Certificates, (a) for any Distribution Date, the
sum
of (i) the Current Interest for the Guaranteed Certificates for such
Distribution Date, but excluding therefrom any Net Prepayment Interest
Shortfalls, any shortfalls resulting from Net Negative Amortization and any
Relief Act Reductions allocable to the Guaranteed Certificates on such
Distribution Date, and (ii) the amount of any Applied Loss Amount allocated
to
the Guaranteed Certificates on such Distribution Date, and (b) for the
Distribution Date in August 2047, the aggregate Class Principal Amount of the
Guaranteed Certificates to the extent unpaid on such Distribution Date (after
giving effect to all distributions to be made on such Distribution Date from
sources other than the Certificate Insurance Policy).
Holder
or Certificateholder:
The
registered owner of any Certificate (other than the Underlying Interests) as
recorded on the books of the Certificate Registrar except that, solely for
the
purposes of taking any action or giving any consent pursuant to this Agreement,
any Certificate registered in the name of the Depositor, the Trustee, the Master
Servicer, a Servicer, any Cap Provider or any Affiliate thereof shall be deemed
not to be outstanding in determining whether the requisite percentage necessary
to effect any such consent has been obtained, except that, in determining
whether the Trustee and any NIMS Insurer shall be protected in relying upon
any
such consent, only Certificates which a Responsible Officer of the Trustee
knows
to be so owned shall be disregarded. The Trustee and any NIMS Insurer may
request and conclusively rely on certifications by the Depositor, the Master
Servicer, any Servicer or any Cap Provider, in determining whether any
Certificates are registered to an Affiliate of the Depositor, the Master
Servicer, such Servicer or such Cap Provider, respectively.
HUD:
The
United States Department of Housing and Urban Development, or any successor
thereto.
Indenture:
An
indenture relating to the issuance of notes secured by the Class P or Class
X
Certificates (or any portion thereof) which may or may not be guaranteed by
a
NIMS Insurer.
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Independent:
When
used with respect to any Accountants, a Person who is “independent” within the
meaning of Rule 2-01(b) of the Commission’s Regulation S-X. When used with
respect to any other Person, a Person who (a) is in fact independent of another
specified Person and any Affiliate of such other Person, (b) does not have
any
material direct financial interest in such other Person or any Affiliate of
such
other Person, and (c) is not connected with such other Person or any Affiliate
of such other Person as an officer, employee, promoter, underwriter, trustee,
partner, director or Person performing similar functions.
Initial
LIBOR Rate:
5.320%
per annum.
Initial
One-Year MTA Rate:
Not
applicable.
Initial
Optional Termination Date:
Not
applicable.
Insolvency
Proceeding:
Not
applicable.
Insurance
Fee Rate:
Not
applicable.
Insurance
Policy:
Any
Primary Mortgage Insurance Policy and any standard hazard insurance policy,
flood insurance policy, earthquake insurance policy or title insurance policy
relating to the Mortgage Loans or the Mortgaged Properties, to be in effect
as
of the Closing Date or thereafter during the term of this
Agreement.
Insurance
Proceeds:
Amounts
paid by the insurer under any Insurance Policy, other than amounts (i) to cover
expenses incurred by or on behalf of a Servicer or the Master Servicer in
connection with procuring such proceeds, (ii) to be applied to restoration
or
repair of the related Mortgaged Property or (iii) required to be paid over
to
the Mortgagor pursuant to law or the related Mortgage Note.
Insured
Amount:
With
respect to the Guaranteed Certificates and for any Distribution Date, the
excess, if any, of Guaranteed Distributions for such Distribution Date over
the
aggregate amount available to be distributed to the Guaranteed Certificates
on
such Distribution Date in accordance with the priorities set forth in Section
5.02.
Insured
Payment:
With
respect to any Distribution Date, the aggregate amount actually paid by the
Certificate Insurer to the Trustee in respect of (i) Insured Amounts for a
Distribution Date and (ii) Preference Amounts for any given Business
Day.
Interest
Rate Cap Agreement:
The
Interest Rate Cap Agreement dated as of July 31, 2007, entered into between
the
Trustee on behalf of the Trust Fund (for the benefit of the holders of Group
I
Senior Certificates) and the Interest Rate Cap Provider, which agreement
provides for the monthly payment, commencing on the Distribution Date in August
2010 and terminating on the Distribution Date in July 2012, by the Interest
Rate
Cap Provider, but subject to the conditions set forth therein, together with
the
confirmation and schedule relating thereto, attached hereto as Exhibit O. The
Interest Rate Cap Provider will be obligated to pay to the Trust Fund at least
one Business Day prior to each Distribution Date, commencing with the
Distribution Date in August 2010 and ending with the Distribution Date in July
2012, one month’s interest calculated at an annual rate equal to the excess, if
any, of LIBOR over 6.75% based on a calculated notional amount as described
in
the Interest Rate Cap Agreement, multiplied by the actual number of days in
the
Accrual Period (treating, solely for purposes of such calculation, the initial
Accrual Period as beginning on the Closing Date and ending on the day
immediately preceding the initial Distribution Date), and divided by
360.
-61-
Interest
Rate Cap Account:
The
account described in Section 5.02(l) hereof.
Interest
Rate Cap Provider:
HSBC
Bank USA, National Association.
Interest
Remittance Amount:
With
respect to any Distribution Date and any Mortgage Pool, an amount equal to
(a)
the sum of (1) all interest collected (other than in connection with Payaheads
and Prepayment Premiums) or advanced in respect of Scheduled Payments on the
related Mortgage Loans during the related Collection Period by any Servicer,
the
Master Servicer, or the Trustee (solely acting in its capacity as successor
master servicer), minus (x) the Servicing Fee or General Servicing Fee, as
applicable, with respect to such Mortgage Loans and (y) previously unreimbursed
Advances and other amounts due to any Servicer, the Master Servicer or the
Trustee (solely acting in its capacity as successor master servicer) to the
extent allocable to interest and the allocable portion of previously
unreimbursed Servicing Advances with respect to the related Mortgage Loans,
(2)
any Compensating Interest Payments with respect to the related Mortgage Loans
with respect to the related Prepayment Period, (3) the portion of any Purchase
Price (or FPD Purchase Price or EPD Purchase Price (excluding any FPD Premiums
or EPD Premiums) payable with respect to a First Payment Default Mortgage Loan
or Early Payment Default Mortgage Loan, respectively) or Substitution Amount
paid with respect to such Mortgage Loans during the related Prepayment Period
allocable to interest, and (4) all Net Liquidation Proceeds, Insurance Proceeds
and any other recoveries collected with respect to the related Mortgage Loans
during the related Prepayment Period, to the extent allocable to interest,
as
reduced by (b) the amount of other costs, expenses or liabilities related to
such Mortgage Pool and reimbursable to the Master Servicer, the Certificate
Insurer, any Servicer, the Custodian pursuant to the Custodial Agreement or
the
Trustee and as increased by (c) the lesser of (1) the aggregate amount set
forth
in clauses (a) (1) through (5) of the definition of Principal Remittance Amount
with respect to the Mortgage Loans in such Mortgage Pool for such Distribution
Date and (2) the aggregate amount of Negative Amortization with respect to
the
Mortgage Loans in such Mortgage Pool during the related Collection
Period.
Intervening
Assignment:
As
defined in Section 2.01(b).
IRS:
The
Internal Revenue Service.
Late
Payment Rate:
As set
forth in the Certificate Insurance Policy.
Latest
Possible Maturity Date:
The
Distribution Date occurring in August 2047.
LBH:
Xxxxxx
Brothers Holdings Inc., or any successor in interest.
LIBOR:
With
respect to the first Accrual Period, the Initial LIBOR Rate. With respect to
each subsequent Accrual Period, a per annum rate determined on the LIBOR
Determination Date in the following manner by the Trustee on the basis of the
“Interest Settlement Rate” set by the British Bankers’ Association (the “BBA”)
for one-month United States dollar deposits, as such rates appear on the
Telerate Page 3750, as of 11:00 a.m. (London time) on such LIBOR Determination
Date.
-62-
If
on
such a LIBOR Determination Date, the BBA’s Interest Settlement Rate does not
appear on the Telerate Page 3750 as of 11:00 a.m. (London time), or if the
Telerate Page 3750 is not available on such date, the Trustee will obtain such
rate from Reuters’ “page LIBOR 01” or Bloomberg’s page “BBAM.” If such rate is
not published for such LIBOR Determination Date, LIBOR for such date will be
the
most recently published Interest Settlement Rate. In the event that the BBA
no
longer sets an Interest Settlement Rate, the Trustee will designate an
alternative index that has performed, or that the Trustee expects to perform,
in
a manner substantially similar to the BBA’s Interest Settlement Rate. The
Trustee will select a particular index as the alternative index only if it
receives an Opinion of Counsel (a copy of which shall be furnished to any NIMS
Insurer), which opinion shall be an expense reimbursed from the Certificate
Account pursuant to Section 4.04, that the selection of such index will not
cause any of the REMICs to lose their classification as REMICs for federal
income tax purposes.
The
establishment of LIBOR by the Trustee and the Trustee’s subsequent calculation
of the Certificate Interest Rate applicable to the LIBOR Certificates for the
relevant Accrual Period, in the absence of manifest error, will be final and
binding.
LIBOR
Business Day:
Any day
on which banks in London, England and The City of New York are open and
conducting transactions in foreign currency and exchange.
LIBOR
Certificate:
(i) Any
Offered Certificate (other than the Grantor Trust Certificates and Notional
Certificates) and (ii) any Underlying Interest.
LIBOR
Determination Date:
The
second LIBOR Business Day immediately preceding the commencement of each Accrual
Period (other than the first Accrual Period) for any LIBOR
Certificates.
Liquidated
Mortgage Loan:
Any
defaulted Mortgage Loan as to which the Master Servicer or a Servicer has
determined that all amounts that it expects to recover on behalf of the Trust
Fund from or on account of such Mortgage Loan have been recovered (exclusive
of
any possibility of a deficiency judgment).
Liquidation
Expenses:
Expenses that are incurred by the Master Servicer or a Servicer in connection
with the liquidation of any defaulted Mortgage Loan and that are not recoverable
under the applicable Primary Mortgage Insurance Policy, if any, including,
without limitation, foreclosure and rehabilitation expenses, legal expenses
and
unreimbursed amounts, if any, expended pursuant to Sections 9.06, 9.16 or
9.22.
Liquidation
Proceeds:
Cash
received in connection with the liquidation of a defaulted Mortgage Loan,
whether through the sale or assignment of such Mortgage Loan, trustee’s sale,
foreclosure sale, payment in full, discounted payoff, condemnation proceeds,
Insurance Proceeds, or otherwise, or the sale of the related Mortgaged Property
if the Mortgaged Property is acquired in satisfaction of the Mortgage Loan
by
foreclosure or deed in lieu of foreclosure, including any amounts remaining
in
the related Escrow Account.
-63-
Loan-to-Value
Ratio:
With
respect to any Mortgage Loan, the ratio of the principal balance of such
Mortgage Loan at origination, or such other date as is specified, to the
Original Value thereof.
Lower
Tier Interest:
Any of
the SWAP REMIC Interests, the REMIC I-1 Interests, the REMIC II-AX Interests,
the REMIC II-1 Interests, the REMIC II-2 Interests, the REMIC II-3 Interests,
the REMIC II-4 Interests, the REMIC II-5 Interests, the REMIC II-6 Interests,
the REMIC II-7 Interests, the REMIC II-8 Interests, the REMIC II-9 Interests
and
the REMIC II-10 Interests.
M1-I
Margin:
As
defined in footnote (40) of the Preliminary Statement under the caption “The
Certificates.”
M1-I
Principal Distribution Amount:
With
respect to any Distribution Date on or after the Pool 1-2 Stepdown Date and
as
long as a Pool 1-2 Trigger Event is not in effect with respect to such
Distribution Date, the amount, if any, by which (x) the sum of (i) the aggregate
Class Principal Amount of the Group I Senior Certificates (other than the Class
AF2 and Class AF3 Certificates), in each case after giving effect to
distributions on such Distribution Date and after the allocation of Net Negative
Amortization, if any, for such Distribution Date, and (ii) the Class Principal
Amount of the Class M1-I Certificates after the allocation of Net Negative
Amortization, if any, for such Distribution Date and immediately prior to such
Distribution Date exceeds (y) the X0-X Xxxxxx Xxxxxx.
X0-X
Xxxxxx Xxxxxx:
With
respect to any Distribution Date an amount equal to the lesser of (a) the
product of (i) (x) for each distribution prior to the Distribution Date in
August 2013, 82.13% and (y) thereafter, 85.70% and (ii) the Pool 1-2 Aggregate
Loan Balance for such Distribution Date determined as of the last day of the
related Collection Period immediately prior to such Distribution Date and (b)
the amount, if any, by which (1) the Pool 1-2 Aggregate Loan Balance for such
Distribution Date determined as of the last day of the related Collection Period
exceeds (2) the Pool 1-2 Overcollateralization Floor.
M2-I
Margin:
As
defined in footnote (41) of the Preliminary Statement under the caption “The
Certificates.”
M2-I
Principal Distribution Amount:
With
respect to any Distribution Date on or after the Pool 1-2 Stepdown Date and
as
long as a Pool 1-2 Trigger Event is not in effect with respect to such
Distribution Date, the amount, if any, by which (x) the sum of (i) the aggregate
Class Principal Amount of the Group I Senior Certificates (other than the Class
AF2 and Class AF3 Certificates) and Class M1-I Certificates, in each case after
giving effect to distributions on such Distribution Date and after the
allocation of Net Negative Amortization, if any, for such Distribution Date,
and
(ii) the Class Principal Amount of the Class M2-I Certificates after the
allocation of Net Negative Amortization, if any, for such Distribution Date
and
immediately prior to such Distribution Date exceeds (y) the X0-X Xxxxxx
Xxxxxx.
X0-X
Xxxxxx Xxxxxx:
With
respect to any Distribution Date an amount equal to the lesser of (a) the
product of (i) (x) for each distribution prior to the Distribution Date in
August 2013, 85.38% and (y) thereafter, 88.30% and (ii) the Pool 1-2 Aggregate
Loan Balance for such Distribution Date determined as of the last day of the
related Collection Period immediately prior to such Distribution Date and (b)
the amount, if any, by which (1) the Pool 1-2 Aggregate Loan Balance for such
Distribution Date determined as of the last day of the related Collection Period
exceeds (2) the Pool 1-2 Xxxxxxxxxxxxxxxxxxxxx Xxxxx.
-00-
X0-X
Xxxxxx:
As
defined in footnote (42) of the Preliminary Statement under the caption “The
Certificates.”
M3-I
Principal Distribution Amount:
With
respect to any Distribution Date on or after the Pool 1-2 Stepdown Date and
as
long as a Pool 1-2 Trigger Event is not in effect with respect to such
Distribution Date, the amount, if any, by which (x) the sum of (i) the aggregate
Class Principal Amount of the Group I Senior Certificates (other than the Class
AF2 and Class AF3 Certificates), Class M1-I Certificates and Class M2-I
Certificates, in each case after giving effect to distributions on such
Distribution Date and after the allocation of Net Negative Amortization, if
any,
for such Distribution Date, and (ii) the Class Principal Amount of the Class
M3-I Certificates after the allocation of Net Negative Amortization, if any,
for
such Distribution Date and immediately prior to such Distribution Date exceeds
(y) the X0-X Xxxxxx Xxxxxx.
X0-X
Xxxxxx Xxxxxx:
With
respect to any Distribution Date an amount equal to the lesser of (a) the
product of (i) (x) for each distribution prior to the Distribution Date in
August 2013, 87.25% and (y) thereafter, 89.80% and (ii) the Pool 1-2 Aggregate
Loan Balance for such Distribution Date determined as of the last day of the
related Collection Period immediately prior to such Distribution Date and (b)
the amount, if any, by which (1) the Pool 1-2 Aggregate Loan Balance for such
Distribution Date determined as of the last day of the related Collection Period
exceeds (2) the Pool 1-2 Overcollateralization Floor.
M4-I
Margin:
As
defined in footnote (43) of the Preliminary Statement under the caption “The
Certificates.”
M4-I
Principal Distribution Amount:
With
respect to any Distribution Date on or after the Pool 1-2 Stepdown Date and
as
long as a Pool 1-2 Trigger Event is not in effect with respect to such
Distribution Date, the amount, if any, by which (x) the sum of (i) the aggregate
Class Principal Amount of the Group I Senior Certificates (other than the Class
AF2 and Class AF3 Certificates), Class M1-I Certificates, Class M2-I
Certificates and Class M3-I Certificates, in each case after giving effect
to
distributions on such Distribution Date and after the allocation of Net Negative
Amortization, if any, for such Distribution Date, and (ii) the Class Principal
Amount of the Class M4-I Certificates after the allocation of Net Negative
Amortization, if any, for such Distribution Date and immediately prior to such
Distribution Date exceeds (y) the X0-X Xxxxxx Xxxxxx.
X0-X
Xxxxxx Xxxxxx:
With
respect to any Distribution Date an amount equal to the lesser of (a) the
product of (i) (x) for each distribution prior to the Distribution Date in
August 2013, 89.13% and (y) thereafter, 91.30% and (ii) the Pool 1-2 Aggregate
Loan Balance for such Distribution Date determined as of the last day of the
related Collection Period immediately prior to such Distribution Date and (b)
the amount, if any, by which (1) the Pool 1-2 Aggregate Loan Balance for such
Distribution Date determined as of the last day of the related Collection Period
exceeds (2) the Pool 1-2 Xxxxxxxxxxxxxxxxxxxxx Xxxxx.
-00-
X0-X
Xxxxxx:
As
defined in footnote (44) of the Preliminary Statement under the caption “The
Certificates.”
M5-I
Principal Distribution Amount:
With
respect to any Distribution Date on or after the Pool 1-2 Stepdown Date and
as
long as a Pool 1-2 Trigger Event is not in effect with respect to such
Distribution Date, the amount, if any, by which (x) the sum of (i) the aggregate
Class Principal Amount of the Group I Senior Certificates (other than the Class
AF2 and Class AF3 Certificates), Class M1-I Certificates, Class M2-I
Certificates, Class M3-I Certificates and Class M4-I Certificates, in each
case
after giving effect to distributions on such Distribution Date and after the
allocation of Net Negative Amortization, if any, for such Distribution Date,
and
(ii) the Class Principal Amount of the Class M5-I Certificates after the
allocation of Net Negative Amortization, if any, for such Distribution Date
and
immediately prior to such Distribution Date exceeds (y) the X0-X Xxxxxx
Xxxxxx.
X0-X
Xxxxxx Xxxxxx:
With
respect to any Distribution Date an amount equal to the lesser of (a) the
product of (i) (x) for each distribution prior to the Distribution Date in
August 2013, 90.75% and (y) thereafter, 92.60% and (ii) the Pool 1-2 Aggregate
Loan Balance for such Distribution Date determined as of the last day of the
related Collection Period immediately prior to such Distribution Date and (b)
the amount, if any, by which (1) the Pool 1-2 Aggregate Loan Balance for such
Distribution Date determined as of the last day of the related Collection Period
exceeds (2) the Pool 1-2 Overcollateralization Floor.
M6-I
Margin:
As
defined in footnote (45) of the Preliminary Statement under the caption “The
Certificates.”
M6-I
Principal Distribution Amount:
With
respect to any Distribution Date on or after the Pool 1-2 Stepdown Date and
as
long as a Pool 1-2 Trigger Event is not in effect with respect to such
Distribution Date, the amount, if any, by which (x) the sum of (i) the aggregate
Class Principal Amount of the Group I Senior Certificates (other than the Class
AF2 and Class AF3 Certificates), Class M1-I Certificates, Class M2-I
Certificates, Class M3-I Certificates, Class M4-I Certificates and Class M5-I
Certificates, in each case after giving effect to distributions on such
Distribution Date and after the allocation of Net Negative Amortization, if
any,
for such Distribution Date, and (ii) the Class Principal Amount of the Class
M6-I Certificates after the allocation of Net Negative Amortization, if any,
for
such Distribution Date and immediately prior to such Distribution Date exceeds
(y) the X0-X Xxxxxx Xxxxxx.
X0-X
Xxxxxx Xxxxxx:
With
respect to any Distribution Date an amount equal to the lesser of (a) the
product of (i) (x) for each distribution prior to the Distribution Date in
August 2013, 92.25% and (y) thereafter, 93.80% and (ii) the Pool 1-2 Aggregate
Loan Balance for such Distribution Date determined as of the last day of the
related Collection Period immediately prior to such Distribution Date and (b)
the amount, if any, by which (1) the Pool 1-2 Aggregate Loan Balance for such
Distribution Date determined as of the last day of the related Collection Period
exceeds (2) the Pool 1-2 Overcollateralization Floor.
M7-I
Margin:
As
defined in footnote (46) of the Preliminary Statement under the caption “The
Certificates.”
-00-
X0-X
Xxxxxxxxx Xxxxxxxxxxxx Xxxxxx:
With
respect to any Distribution Date on or after the Pool 1-2 Stepdown Date and
as
long as a Pool 1-2 Trigger Event is not in effect with respect to such
Distribution Date, the amount, if any, by which (x) the sum of (i) the aggregate
Class Principal Amount of the Group I Senior Certificates (other than the Class
AF2 and Class AF3 Certificates), Class M1-I Certificates, Class M2-I
Certificates, Class M3-I Certificates, Class M4-I Certificates, Class M5-I
Certificates and Class M6-I Certificates, in each case after giving effect
to
distributions on such Distribution Date and after the allocation of Net Negative
Amortization, if any, for such Distribution Date, and (ii) the Class Principal
Amount of the Class M7-I Certificates after the allocation of Net Negative
Amortization, if any, for such Distribution Date and immediately prior to such
Distribution Date exceeds (y) the X0-X Xxxxxx Xxxxxx.
X0-X
Xxxxxx Xxxxxx:
With
respect to any Distribution Date an amount equal to the lesser of (a) the
product of (i) (x) for each distribution prior to the Distribution Date in
August 2013, 93.75% and (y) thereafter, 95.00% and (ii) the Pool 1-2 Aggregate
Loan Balance for such Distribution Date determined as of the last day of the
related Collection Period immediately prior to such Distribution Date and (b)
the amount, if any, by which (1) the Pool 1-2 Aggregate Loan Balance for such
Distribution Date determined as of the last day of the related Collection Period
exceeds (2) the Pool 1-2 Overcollateralization Floor.
M8-I
Principal Distribution Amount:
With
respect to any Distribution Date on or after the Pool 1-2 Stepdown Date and
as
long as a Pool 1-2 Trigger Event is not in effect with respect to such
Distribution Date, the amount, if any, by which (x) the sum of (i) the aggregate
Class Principal Amount of the Group I Senior Certificates (other than the Class
AF2 and Class AF3 Certificates), Class M1-I Certificates, Class M2-I
Certificates, Class M3-I Certificates, Class M4-I Certificates, Class M5-I
Certificates, Class M6-I Certificates and Class M7-I Certificates, in each
case
after giving effect to distributions on such Distribution Date and after the
allocation of Net Negative Amortization, if any, for such Distribution Date,
and
(ii) the Class Principal Amount of the Class M8-I Certificates after the
allocation of Net Negative Amortization, if any, for such Distribution Date
and
immediately prior to such Distribution Date exceeds (y) the X0-X Xxxxxx
Xxxxxx.
X0-X
Xxxxxx Xxxxxx:
With
respect to any Distribution Date an amount equal to the lesser of (a) the
product of (i) (x) for each distribution prior to the Distribution Date in
August 2013, 95.25% and (y) thereafter, 96.20% and (ii) the Pool 1-2 Aggregate
Loan Balance for such Distribution Date determined as of the last day of the
related Collection Period immediately prior to such Distribution Date and (b)
the amount, if any, by which (1) the Pool 1-2 Aggregate Loan Balance for such
Distribution Date determined as of the last day of the related Collection Period
exceeds (2) the Pool 1-2 Overcollateralization Floor.
M9-I
Principal Distribution Amount:
With
respect to any Distribution Date on or after the Pool 1-2 Stepdown Date and
as
long as a Pool 1-2 Trigger Event is not in effect with respect to such
Distribution Date, the amount, if any, by which (x) the sum of (i) the aggregate
Class Principal Amount of the Group I Senior Certificates (other than the Class
AF2 and Class AF3 Certificates), Class M1-I Certificates, Class M2-I
Certificates, Class M3-I Certificates, Class M4-I Certificates, Class M5-I
Certificates, Class M6-I Certificates, Class M7-I Certificates and Class M8-I
Certificates, in each case after giving effect to distributions on such
Distribution Date and after the allocation of Net Negative Amortization, if
any,
for such Distribution Date, and (ii) the Class Principal Amount of the Class
M9-I Certificates after the allocation of Net Negative Amortization, if any,
for
such Distribution Date and immediately prior to such Distribution Date exceeds
(y) the X0-0 Xxxxxx Xxxxxx.
-00-
X0-X
Xxxxxx Xxxxxx:
With
respect to any Distribution Date an amount equal to the lesser of (a) the
product of (i) (x) for each distribution prior to the Distribution Date in
August 2013, 98.00% and (y) thereafter, 98.40% and (ii) the Pool 1-2 Aggregate
Loan Balance for such Distribution Date determined as of the last day of the
related Collection Period immediately prior to such Distribution Date and (b)
the amount, if any, by which (1) the Pool 1-2 Aggregate Loan Balance for such
Distribution Date determined as of the last day of the related Collection Period
exceeds (2) the Pool 1-2 Overcollateralization Floor.
M1-II
Margin:
As
defined in footnote (49) of the Preliminary Statement under the caption “The
Certificates.”
M1-II
Principal Distribution Amount:
With
respect to any Distribution Date on or after the Pool 3-4 Stepdown Date and
as
long as a Pool 3-4 Trigger Event is not in effect with respect to such
Distribution Date, the amount, if any, by which (x) the sum of (i) the aggregate
Class Principal Amount of the Group II Senior Certificates (other than the
Pool
4 Exchangeable Certificates), in each case after giving effect to distributions
on such Distribution Date and after the allocation of Net Negative Amortization,
if any, for such Distribution Date, and (ii) the Class Principal Amount of
the
Class M1-II Certificates after the allocation of Net Negative Amortization,
if
any, for such Distribution Date and immediately prior to such Distribution
Date
exceeds (y) the M1-II Target Amount.
M1-II
Target Amount:
With
respect to any Distribution Date an amount equal to the lesser of (a) the
product of (i) (x) for each distribution prior to the Distribution Date in
August 2013, 79.75% and (y) thereafter, 83.80% and (ii) the Pool 3-4 Aggregate
Loan Balance for such Distribution Date determined as of the last day of the
related Collection Period immediately prior to such Distribution Date and (b)
the amount, if any, by which (1) the Pool 3-4 Aggregate Loan Balance for such
Distribution Date determined as of the last day of the related Collection Period
exceeds (2) the Pool 3-4 Overcollateralization Floor.
M2-II
Margin:
As
defined in footnote (50) of the Preliminary Statement under the caption “The
Certificates.”
M2-II
Principal Distribution Amount:
With
respect to any Distribution Date on or after the Pool 3-4 Stepdown Date and
as
long as a Pool 3-4 Trigger Event is not in effect with respect to such
Distribution Date, the amount, if any, by which (x) the sum of (i) the aggregate
Class Principal Amount of the Group II Senior Certificates (other than the
Pool
4 Exchangeable Certificates) and Class M1-II Certificates, in each case after
giving effect to distributions on such Distribution Date and after the
allocation of Net Negative Amortization, if any, for such Distribution Date,
and
(ii) the Class Principal Amount of the Class M2-II Certificates after the
allocation of Net Negative Amortization, if any, for such Distribution Date
and
immediately prior to such Distribution Date exceeds (y) the M2-II Target
Amount.
-68-
M2-II
Target Amount:
With
respect to any Distribution Date an amount equal to the lesser of (a) the
product of (i) (x) for each distribution prior to the Distribution Date in
August 2013, 83.63% and (y) thereafter, 86.90% and (ii) the Pool 3-4 Aggregate
Loan Balance for such Distribution Date determined as of the last day of the
related Collection Period immediately prior to such Distribution Date and (b)
the amount, if any, by which (1) the Pool 3-4 Aggregate Loan Balance for such
Distribution Date determined as of the last day of the related Collection Period
exceeds (2) the Pool 3-4 Overcollateralization Floor.
M3-II
Margin:
As
defined in footnote (51) of the Preliminary Statement under the caption “The
Certificates.”
M3-II
Principal Distribution Amount:
With
respect to any Distribution Date on or after the Pool 3-4 Stepdown Date and
as
long as a Pool 3-4 Trigger Event is not in effect with respect to such
Distribution Date, the amount, if any, by which (x) the sum of (i) the aggregate
Class Principal Amount of the Group II Senior Certificates (other than the
Pool
4 Exchangeable Certificates), Class M1-II Certificates and Class M2-II
Certificates, in each case after giving effect to distributions on such
Distribution Date and after the allocation of Net Negative Amortization, if
any,
for such Distribution Date, and (ii) the Class Principal Amount of the Class
M3-II Certificates after the allocation of Net Negative Amortization, if any,
for such Distribution Date and immediately prior to such Distribution Date
exceeds (y) the M3-II Target Amount.
M3-II
Target Amount:
With
respect to any Distribution Date an amount equal to the lesser of (a) the
product of (i) (x) for each distribution prior to the Distribution Date in
August 2013, 85.75% and (y) thereafter, 88.60% and (ii) the Pool 3-4 Aggregate
Loan Balance for such Distribution Date determined as of the last day of the
related Collection Period immediately prior to such Distribution Date and (b)
the amount, if any, by which (1) the Pool 3-4 Aggregate Loan Balance for such
Distribution Date determined as of the last day of the related Collection Period
exceeds (2) the Pool 3-4 Overcollateralization Floor.
M4-II
Margin:
As
defined in footnote (52) of the Preliminary Statement under the caption “The
Certificates.”
M4-II
Principal Distribution Amount:
With
respect to any Distribution Date on or after the Pool 3-4 Stepdown Date and
as
long as a Pool 3-4 Trigger Event is not in effect with respect to such
Distribution Date, the amount, if any, by which (x) the sum of (i) the aggregate
Class Principal Amount of the Group II Senior Certificates (other than the
Pool
4 Exchangeable Certificates), Class M1-II Certificates, Class M2-II Certificates
and Class M3-II Certificates, in each case after giving effect to distributions
on such Distribution Date and after the allocation of Net Negative Amortization,
if any, for such Distribution Date, and (ii) the Class Principal Amount of
the
Class M4-II Certificates after the allocation of Net Negative Amortization,
if
any, for such Distribution Date and immediately prior to such Distribution
Date
exceeds (y) the M4-II Target Amount.
M4-II
Target Amount:
With
respect to any Distribution Date an amount equal to the lesser of (a) the
product of (i) (x) for each distribution prior to the Distribution Date in
August 2013, 88.13% and (y) thereafter, 90.50% and (ii) the Pool 3-4 Aggregate
Loan Balance for such Distribution Date determined as of the last day of the
related Collection Period immediately prior to such Distribution Date and (b)
the amount, if any, by which (1) the Pool 3-4 Aggregate Loan Balance for such
Distribution Date determined as of the last day of the related Collection Period
exceeds (2) the Pool 3-4 Xxxxxxxxxxxxxxxxxxxxx Xxxxx.
-00-
X0-XX
Xxxxxx:
As
defined in footnote (53) of the Preliminary Statement under the caption “The
Certificates.”
M5-II
Principal Distribution Amount:
With
respect to any Distribution Date on or after the Pool 3-4 Stepdown Date and
as
long as a Pool 3-4 Trigger Event is not in effect with respect to such
Distribution Date, the amount, if any, by which (x) the sum of (i) the aggregate
Class Principal Amount of the Group II Senior Certificates (other than the
Pool
4 Exchangeable Certificates), Class M1-II Certificates, Class M2-II
Certificates, Class M3-II Certificates and Class M4-II Certificates, in each
case after giving effect to distributions on such Distribution Date and after
the allocation of Net Negative Amortization, if any, for such Distribution
Date,
and (ii) the Class Principal Amount of the Class M5-II Certificates after the
allocation of Net Negative Amortization, if any, for such Distribution Date
and
immediately prior to such Distribution Date exceeds (y) the M5-II Target
Amount.
M5-II
Target Amount:
With
respect to any Distribution Date an amount equal to the lesser of (a) the
product of (i) (x) for each distribution prior to the Distribution Date in
August 2013, 90.88% and (y) thereafter, 92.70% and (ii) the Pool 3-4 Aggregate
Loan Balance for such Distribution Date determined as of the last day of the
related Collection Period immediately prior to such Distribution Date and (b)
the amount, if any, by which (1) the Pool 3-4 Aggregate Loan Balance for such
Distribution Date determined as of the last day of the related Collection Period
exceeds (2) the Pool 3-4 Overcollateralization Floor.
M6-II
Margin:
As
defined in footnote (54) of the Preliminary Statement under the caption “The
Certificates.”
M6-II
Principal Distribution Amount:
With
respect to any Distribution Date on or after the Pool 3-4 Stepdown Date and
as
long as a Pool 3-4 Trigger Event is not in effect with respect to such
Distribution Date, the amount, if any, by which (x) the sum of (i) the aggregate
Class Principal Amount of the Group II Senior Certificates (other than the
Pool
4 Exchangeable Certificates), Class M1-II Certificates, Class M2-II
Certificates, Class M3-II Certificates, Class M4-II Certificates and Class
M5-II
Certificates, in each case after giving effect to distributions on such
Distribution Date and after the allocation of Net Negative Amortization, if
any,
for such Distribution Date, and (ii) the Class Principal Amount of the Class
M6-II Certificates after the allocation of Net Negative Amortization, if any,
for such Distribution Date and immediately prior to such Distribution Date
exceeds (y) the M6-II Target Amount.
M6-II
Target Amount:
With
respect to any Distribution Date an amount equal to the lesser of (a) the
product of (i) (x) for each distribution prior to the Distribution Date in
August 2013, 92.88% and (y) thereafter, 94.30% and (ii) the Pool 3-4 Aggregate
Loan Balance for such Distribution Date determined as of the last day of the
related Collection Period immediately prior to such Distribution Date and (b)
the amount, if any, by which (1) the Pool 3-4 Aggregate Loan Balance for such
Distribution Date determined as of the last day of the related Collection Period
exceeds (2) the Pool 3-4 Xxxxxxxxxxxxxxxxxxxxx Xxxxx.
-00-
X0-XX
Xxxxxx:
As
defined in footnote (55) of the Preliminary Statement under the caption “The
Certificates.”
M7-II
Principal Distribution Amount:
With
respect to any Distribution Date on or after the Pool 3-4 Stepdown Date and
as
long as a Pool 3-4 Trigger Event is not in effect with respect to such
Distribution Date, the amount, if any, by which (x) the sum of (i) the aggregate
Class Principal Amount of the Group II Senior Certificates (other than the
Pool
4 Exchangeable Certificates), Class M1-II Certificates, Class M2-II
Certificates, Class M3-II Certificates, Class M4-II Certificates, Class M5-II
Certificates and Class M6-II Certificates, in each case after giving effect
to
distributions on such Distribution Date and after the allocation of Net Negative
Amortization, if any, for such Distribution Date, and (ii) the Class Principal
Amount of the Class M7-II Certificates after the allocation of Net Negative
Amortization, if any, for such Distribution Date and immediately prior to such
Distribution Date exceeds (y) the M7-II Target Amount.
M7-II
Target Amount:
With
respect to any Distribution Date an amount equal to the lesser of (a) the
product of (i) (x) for each distribution prior to the Distribution Date in
August 2013, 94.63% and (y) thereafter, 95.70% and (ii) the Pool 3-4 Aggregate
Loan Balance for such Distribution Date determined as of the last day of the
related Collection Period immediately prior to such Distribution Date and (b)
the amount, if any, by which (1) the Pool 3-4 Aggregate Loan Balance for such
Distribution Date determined as of the last day of the related Collection Period
exceeds (2) the Pool 3-4 Overcollateralization Floor.
M8-II
Margin:
As
defined in footnote (56) of the Preliminary Statement under the caption “The
Certificates.”
M8-II
Principal Distribution Amount:
With
respect to any Distribution Date on or after the Pool 3-4 Stepdown Date and
as
long as a Pool 3-4 Trigger Event is not in effect with respect to such
Distribution Date, the amount, if any, by which (x) the sum of (i) the aggregate
Class Principal Amount of the Group II Senior Certificates (other than the
Pool
4 Exchangeable Certificates), Class M1-II Certificates, Class M2-II
Certificates, Class M3-II Certificates, Class M4-II Certificates, Class M5-II
Certificates, Class M6-II Certificates and Class M7-II Certificates, in each
case after giving effect to distributions on such Distribution Date and after
the allocation of Net Negative Amortization, if any, for such Distribution
Date,
and (ii) the Class Principal Amount of the Class M8-II Certificates after the
allocation of Net Negative Amortization, if any, for such Distribution Date
and
immediately prior to such Distribution Date exceeds (y) the M8-II Target
Amount.
M8-II
Target Amount:
With
respect to any Distribution Date an amount equal to the lesser of (a) the
product of (i) (x) for each distribution prior to the Distribution Date in
August 2013, 96.00% and (y) thereafter, 96.80% and (ii) the Pool 3-4 Aggregate
Loan Balance for such Distribution Date determined as of the last day of the
related Collection Period immediately prior to such Distribution Date and (b)
the amount, if any, by which (1) the Pool 3-4 Aggregate Loan Balance for such
Distribution Date determined as of the last day of the related Collection Period
exceeds (2) the Pool 3-4 Overcollateralization Floor.
M9-II
Margin:
As
defined in footnote (57) of the Preliminary Statement under the caption “The
Certificates.”
-71-
M9-II
Principal Distribution Amount:
With
respect to any Distribution Date on or after the Pool 3-4 Stepdown Date and
as
long as a Pool 3-4 Trigger Event is not in effect with respect to such
Distribution Date, the amount, if any, by which (x) the sum of (i) the aggregate
Class Principal Amount of the Group II Senior Certificates (other than the
Pool
4 Exchangeable Certificates), Class M1-II Certificates, Class M2-II
Certificates, Class M3-II Certificates, Class M4-II Certificates, Class M5-II
Certificates, Class M6-II Certificates, Class M7-II Certificates and Class
M8-II
Certificates, in each case after giving effect to distributions on such
Distribution Date and after the allocation of Net Negative Amortization, if
any,
for such Distribution Date, and (ii) the Class Principal Amount of the Class
M9-II Certificates after the allocation of Net Negative Amortization, if any,
for such Distribution Date and immediately prior to such Distribution Date
exceeds (y) the M9-II Target Amount.
M9-II
Target Amount:
With
respect to any Distribution Date an amount equal to the lesser of (a) the
product of (i) (x) for each distribution prior to the Distribution Date in
August 2013, 97.25% and (y) thereafter, 97.80% and (ii) the Pool 3-4 Aggregate
Loan Balance for such Distribution Date determined as of the last day of the
related Collection Period immediately prior to such Distribution Date and (b)
the amount, if any, by which (1) the Pool 3-4 Aggregate Loan Balance for such
Distribution Date determined as of the last day of the related Collection Period
exceeds (2) the Pool 3-4 Overcollateralization Floor.
Master
Servicer:
Aurora
Loan Services LLC, or any successor in interest, or if any successor master
servicer shall be appointed as herein provided, then such successor master
servicer.
Master
Servicing Fee:
As to
any Distribution Date, an amount equal to one-twelfth the product of (a) the
Master Servicing Fee Rate and (b) the outstanding principal balance of each
Mortgage Loan.
Master
Servicing Fee Rate:
0.00%
per annum.
Material
Defect:
As
defined in Section 2.02(c).
Maximum
Interest Rate:
Any of
the Pool 3 Maximum Interest Rate, Pool 4 Maximum Interest Rate or Group II
Subordinate Maximum Interest Rate.
Maximum
Rate:
For any
Mortgage Loan, the rate specified in the related Mortgage Note which the related
mortgage rate will never exceed.
MERS:
Mortgage Electronic Registration Systems, Inc., a Delaware corporation, or
any
successor in interest thereto.
MERS
Mortgage Loan:
Any
Mortgage Loan as to which the related Mortgage, or an Assignment of Mortgage,
has been or will be recorded in the name of MERS, as nominee for the holder
from
time to time of the Mortgage Note.
Monthly
Excess Cashflow:
Not
applicable.
Monthly
Excess Interest:
Not
applicable.
-72-
Moody’s:
Xxxxx’x
Investors Service, Inc., or any successor in interest.
Mortgage:
A
mortgage, deed of trust or other instrument encumbering a fee simple interest
in
real property securing a Mortgage Note, together with improvements
thereto.
Mortgage
File:
As
defined in Section 2.01(b).
Mortgage
Group:
Any of
Mortgage Group I or Mortgage Group II.
Mortgage
Group I:
Xxxx 0,
Xxxx 0X and Pool 2.
Mortgage
Group II:
Pool 3
and Pool 4.
Mortgage
Group II Net Rate:
With
respect to any Distribution Date, an annual rate equal to the product of (i)
a
fraction, expressed as a percentage, the numerator of which is the product
of
(x) the excess of (1) the Optimal Interest Remittance Amount for Pool 3 and
Pool
4 for such Distribution Date over (2) the sum of (A) the Certificate Insurer
Premium for such Distribution Date and (B) the aggregate interest accrued on
the
Class LTII1-3AX Interest and Class LTII1-4AX Interest for such Distribution
Date, and (y) 12, and the denominator of which is the aggregate Pool Balance
of
Pool 3 and Pool 4 as of the first day of the related Collection Period (not
including for this purpose mortgage loans for which prepayments in full have
been received and distributed in the month prior to that Distribution Date)
and
(ii) a fraction, the numerator of which is 30 and the denominator of which
is
the actual number of days in the related Accrual Period.
Mortgage
Loan:
A
Mortgage and the related notes or other evidences of indebtedness secured by
each such Mortgage conveyed, transferred, sold, assigned to or deposited with
the Trustee pursuant to Section 2.01 or Section 2.05, including without
limitation, each Mortgage Loan listed on the Mortgage Loan Schedule, as amended
from time to time.
Mortgage
Loan Sale Agreement:
The
mortgage loan sale and assignment agreement dated as of July 1, 2007 for the
sale of the Mortgage Loans by the Seller to the Depositor.
Mortgage
Loan Schedule:
The
schedule attached hereto as Schedule A, which shall identify each Mortgage
Loan,
as such schedule may be amended from time to time to reflect the addition of
Mortgage Loans to, or the deletion of Mortgage Loans from, the Trust Fund.
Such
schedule shall set forth, among other things, the following information with
respect to each Mortgage Loan: (i) the Mortgage Loan identifying number; (ii)
the Mortgagor’s name; (iii) the street address of the Mortgaged Property
including the city, state and zip code; (iv) the original principal amount
of
the Mortgage Loan; (v) the Mortgage Rate at origination; (vi) the monthly
payment of principal and interest at origination; (vii) the Seller of such
Mortgage Loan to the Depositor; (viii) the Servicer servicing such Mortgage
Loan
and the applicable Servicing Fee; (ix) the applicable prepayment premium, if
any, and the method of calculation and (x) the Custodian with respect to the
Mortgage File related to such Mortgage Loan. The Depositor shall be responsible
for providing the Trustee and the Master Servicer with all amendments to the
Mortgage Loan Schedule.
-73-
Mortgage
Note:
The
note or other evidence of the indebtedness of a Mortgagor secured by a Mortgage
under a Mortgage Loan.
Mortgage
Pool:
Any of
Pool 0, Xxxx 0X, Xxxx 2, Pool 3 or Pool 4.
Mortgage
Rate:
As to
any Mortgage Loan, the per annum rate at which interest accrues on such Mortgage
Loan, determined under in the related Mortgage Note as reduced by any Relief
Act
Reductions.
Mortgaged
Property:
Either
of (x) the fee simple interest in real property, together with improvements
thereto including any exterior improvements to be completed within 120 days
of
disbursement of the related Mortgage Loan proceeds, or (y) in the case of a
Cooperative Loan, the related Cooperative Shares and Proprietary Lease, securing
the indebtedness of the Mortgagor under the related Mortgage Loan.
Mortgagor:
The
obligor on a Mortgage Note.
Negative
Amortization:
With
respect to each Distribution Date, the amount of interest on the Mortgage Loans
that the related Mortgagors are not obligated to pay as interest (and which
shall be added to the Scheduled Principal Balance of each such Mortgage Loan)
due to the negative amortization feature of such Mortgage Loans, in each case
during the related Collection Period.
Negative
Amortization Certificate:
Any
Certificate other than the Class R Certificate, the Class 3-AX Certificate,
the
Class 4-AX Certificate and Grantor Trust Certificate (unless the related
Deferred Interest Cap Agreement has been terminated or there has been a default
in payment under the related Deferred Interest Cap Agreement).
Net
Funds Cap:
Any of
the Pool 1 Net Funds Cap, the Pool 1C Net Funds Cap, the Pool 2 Net Funds Cap,
the Pool 3 Net Funds Cap, the Pool 4 Net Funds Cap, Group I Subordinate Net
Funds Cap or the Group II Subordinate Net Funds Cap.
Net
Liquidation Proceeds:
With
respect to any Liquidated Mortgage Loan, the related Liquidation Proceeds net
of
(i) unreimbursed expenses and (ii) any unreimbursed Advances, if any, received
and retained in connection with the liquidation of such Mortgage
Loan.
Net
Mortgage Rate:
With
respect to any Mortgage Loan, the Mortgage Rate thereof reduced by the Servicing
Fee Rate or General Servicing Fee Rate, as applicable, and any mortgage
insurance premium rate, as applicable.
Net
Negative Amortization:
For any
Distribution Date and each Mortgage Pool, the excess, if any, of (i) the
Negative Amortization with respect to all Mortgage Loans in such Mortgage Pool
for the calendar month prior to that Distribution Date, over (ii) the aggregate
amount of all scheduled monthly principal payments received with respect to
all
Mortgage Loans in such Mortgage Pool during the related Collection Period,
prepayments in full and partial prepayments received with respect to all
Mortgage Loans in such Mortgage Pool during the related Prepayment Period
(including principal received in connection with the repurchase of a Mortgage
Loan from the Trust Fund and all other principal received other than scheduled
monthly payments) and recoveries in respect of the Mortgage Loans in such
Mortgage Pool received during the related Prepayment Period.
-74-
Net
Prepayment Interest Shortfall:
With
respect to any Deposit Date and any Class of Certificates, the excess, if any,
of any Prepayment Interest Shortfalls with respect to the Mortgage Loans in
a
Mortgage Pool for such date over (i) any Prepayment Interest Excess with respect
to such Mortgage Loans for such date and (ii) any amounts paid with respect
to
such shortfalls by a Servicer pursuant to the applicable Servicing Agreement
or
by the Master Servicer.
Net
Rate:
Not
applicable.
Net
Swap Payment:
With
respect to each Distribution Date, the net payment required to be made pursuant
to the terms of the Swap Agreement, which net payment shall not take into
account any Swap Termination Payment, and any unpaid amounts due on previous
Swap Payment Dates and accrued interest thereon as provided in the Swap
Agreement, as calculated by the Swap Counterparty and furnished to the
Trustee.
Net
WAC:
Not
applicable.
NIM
Redemption Amount:
As
defined in Section 7.01(b).
NIM
Securities:
Any net
interest margin securities issued subsequent to the Closing Date by an owner
trust or other special purpose entity, the principal assets of which include
some or all of the Class AP-I, Class 3-AP, Class 4-AP, Class X-I and Class
X-II
Certificates and the payments received thereon, which principal assets back
such
securities.
NIMS
Agreement:
Not
applicable.
NIMS
Insurer:
One or
more insurers issuing financial guaranty insurance policies in connection with
the issuance of NIM Securities.
Non-Book-Entry
Certificate:
Not
applicable.
Non-MERS
Mortgage Loan:
Any
Mortgage Loan other than a MERS Mortgage Loan.
Non-permitted
Foreign Holder:
As
defined in Section 3.03(f).
Non-U.S.
Person:
Any
person other than a “United States person” within the meaning of Section
7701(a)(30) of the Code.
Nonpayment:
With
respect to any Distribution Date, an Insured Amount that is due for Payment
but
has not been paid pursuant to this Agreement.
Notice:
The
telephonic or telegraphic notice, promptly confirmed in writing by telecopy
substantially in the form of Exhibit A to the Certificate Insurance Policy,
the
original of which is subsequently delivered by registered or certified mail,
from the Trustee specifying the Insured Amount or Preference Amount which shall
be due and owing on the applicable Distribution Date.
-75-
Notice
of Nonpayment.
The
notice to be delivered by the Trustee to the Certificate Insurer with respect
to
any Distribution Date pursuant to Section 5.13(a), which shall be in the form
attached to the Certificate Insurance Policy.
Notional
Amount:
With
respect to any Notional Certificate and any Distribution Date, such
Certificate’s Percentage Interest of the Class Notional Amount of such Class of
Certificates for such Distribution Date.
Notional
Certificate: Any Class 3-AX or Class 4-AX Certificate or any Pool 4
Interest-Only Exchangeable Certificate.
Offered
Certificates:
Collectively, the Class 1-A1, Class 1-A2, Class 1-A3, Class 1C-A1, Class 1C-A1,
Class 1C-A3, Class 2-A1, Class 2-A2, Class 2-A3, Class AF2, Class AF3, Class
3-A1, Class 3-A2, Class 3-AX, Class 4-A1, Class 4-A2A, Class 4-A2B, Class 4-A3,
Class 4-AX, the Pool 4 Exchangeable Certificates and the Class M1-I, Class
M2-I,
Class M3-I, Class M4-I, Class M5-I, Class M6-I, Class M7-I, Class M8-I, Class
M9-I, Class M1-II, Class M2-II, Class M3-II, Class M4-II, Class M5-II, Class
M6-II, Class M7-II, Class M8-II and Class M9-II Certificates.
Offering
Document:
Either
of the private placement memorandum, dated July 31, 2007, relating to the
Privately Offered Certificates or the Prospectus.
Officer’s
Certificate:
A
certificate signed by the Chairman of the Board, any Vice Chairman, the
President, any Vice President or any Assistant Vice President of a Person,
and
in each case delivered to the Trustee.
Opinion
of Counsel:
A
written opinion of counsel, reasonably acceptable in form and substance to
the
Trustee, and who may be in house or outside counsel to the Depositor, the Master
Servicer or the Servicer but which must be Independent outside counsel with
respect to any such opinion of counsel concerning the transfer of any Residual
Certificate or concerning certain matters with respect to the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”), or the taxation,
or the federal income tax status, of each REMIC.
Optimal
Interest Remittance Amount:
With
respect to each Mortgage Pool for each Distribution Date, the product of (A)
(x)
the weighted average of the Net Mortgage Rates for the Mortgage Loans in such
Mortgage Pool (based on their Scheduled Principal Balances as of the first
day
of the related Collection Period) divided by (y) 12 and (B) the Pool Balance
for
such Mortgage Pool as of the first day of the related Collection Period (not
including for this purpose Mortgage Loans for which prepayments in full have
been received and distributed in the month prior to that Distribution
Date).
Original
Loan-to-Value Ratio:
Not
applicable.
Original
Value:
The
lesser of (a) the Appraised Value of a Mortgaged Property at the time the
related Mortgage Loan was originated and (b) if the Mortgage Loan was made
to
finance the acquisition of the related Mortgaged Property, the purchase price
paid for the Mortgaged Property by the Mortgagor at the time the related
Mortgage Loan was originated.
-76-
Originators:
American Home Mortgage Corp., IndyMac Bank, F.S.B., Bank of America, National
Association, Residential Funding Company, LLC, Countrywide Home Loans, Inc.,
Xxxxxx Brothers Bank, FSB, SunTrust, Quicken Loans, Inc. and
GreenPoint.
Overcollateralization
Amount:
Any of
the Pool 1-2 Overcollateralization Amount or the Pool 3-4 Overcollateralization
Amount.
Overcollateralization
Deficiency:
Not
applicable.
Overcollateralization
Floor:
Not
applicable.
Overcollateralization
Release Amount:
Not
applicable.
Payahead:
With
respect to any Mortgage Loan and any Due Date therefor, any Scheduled Payment
received by the Servicer during any Collection Period in addition to the
Scheduled Payment due on such Due Date, intended by the related Mortgagor to
be
applied on a subsequent Due Date or Due Dates.
Paying
Agent:
Any
paying agent appointed pursuant to Section 3.08.
PCAOB:
The
Public Company Accounting Oversight Board.
Percentage
Interest:
With
respect to any Certificate other than a Grantor Trust Certificate, its
percentage interest in the undivided beneficial ownership interest in the Trust
Fund evidenced by all Certificates of the same Class as such Certificate. With
respect to any Certificate other than the Class C-I, Class C-II, Class X-I,
Class X-II and Class R Certificates, the Percentage Interest evidenced thereby
shall equal the initial Certificate Principal Amount thereof divided by the
initial Class Principal Amount of all Certificates of the same Class. With
respect to the Class C-I, Class C-II, Class X-I, Class X-II and Class R
Certificates, the Percentage Interest evidenced thereby shall be as specified
on
the face thereof, or otherwise be equal to 100%.
Permitted
Servicing Amendment:
Any
amendment to a Servicing Agreement pursuant to Section 11.03(a)(iii) hereunder
in connection with any servicing transfer or transfer of any servicing
rights.
Permitted
Transferee:
As
defined in Section 3.03(f).
Person:
Any
individual, corporation, partnership, joint venture, association, joint stock
company, limited liability company, trust, unincorporated organization or
government or any agency or political subdivision thereof.
Placement
Agent:
Xxxxxx
Brothers Inc.
Plan:
As
defined in Section 3.03(d).
-77-
Plan
Asset Regulations:
The
Department of Labor regulations set forth in 29 C.F.R. 2510.3 101.
Policy
Payments Account:
A
separate trust account created and maintained by the Trustee to which payments
under the Certificate Insurer Policy are deposited.
Pool
1:
The
aggregate of the Mortgage Loans identified on the Mortgage Loan Schedule as
being included in Pool 1.
Pool
1
Mortgage Loan:
A
Mortgage in Pool 1 and the related notes or other evidences of indebtedness
secured by each such Mortgage conveyed, transferred, sold, assigned to or
deposited with the Trustee pursuant to Section 2.01 or Section 2.05, including
without limitation, each Pool 1 Mortgage Loan listed on the Mortgage Loan
Schedule, as amended from time to time.
Pool
1
Net Funds Cap:
With
respect to any Distribution Date, an annual rate equal to (a) a fraction,
expressed as a percentage, the numerator of which is the product of (1) the
excess, if any, of (x) the Optimal Interest Remittance Amount for Pool 1 for
such Distribution Date over (y) the amount of any Net Swap Payment or Swap
Termination Payment not due to a Swap Counterparty Trigger Event owed to the
Swap Counterparty on the related due date allocable to Pool 1 (based on the
applicable Swap Allocation Percentage) and (2) 12, and the denominator of which
is the Pool Balance for Pool 1 as of the first day of the related Collection
Period (not including for this purpose Mortgage Loans for which prepayments
in
full have been received and distributed in the month prior to that Distribution
Date), multiplied by (b) a fraction, the numerator of which is 30 and the
denominator of which is the actual number of days in the Accrual Period related
to such Distribution Date.
Pool
1
Senior Certificates:
The
Class 1-A1, Class 1-A2 and Class 1-A3 Certificates.
Pool
1
Senior Priority: For the Pool 1 Senior Certificates, sequentially in the
following order: (i) up to the amount of any Net Negative Amortization
previously allocated to such Certificates and not repaid, to the Pool 1 Senior
Certificates pro rata based on the amount of such unpaid prior allocations
of
Net Negative Amortization to each class thereof and (ii) pro rata, to the Pool
1
Senior Certificates.
Pool
1-2 Aggregate Loan Balance: With
respect to any Distribution Date, the total Scheduled Principal Balance of
the
Mortgage Loans in Pool 1, Pool 1C and Pool 2 for that Distribution
Date.
Pool
1-2 Applied Loss Amount:
With
respect to any Distribution Date, the amount, if any, by which (x) the aggregate
Certificate Principal Amount of the Group I Certificates after giving effect
to
all Realized Losses incurred with respect to the Pool 1, Pool 1C and Pool 2
Mortgage Loans during the related Collection Period and distributions of
principal on such Distribution Date, but before giving effect to any application
of the Pool 1-2 Applied Loss Amount with respect to such date, exceeds (y)
the
Pool 1-2 Aggregate Loan Balance for such Distribution Date.
Pool
1-2 Assets:
As
defined in Section 7.01(b)(i).
-78-
Pool
1-2 Basis Risk Payment:
For any
Distribution Date and the Group I Certificates, the excess, if any of (A) the
sum of (1) any Basis Risk Shortfall for the Group I Certificates for such
Distribution Date not otherwise funded out of amounts received on the Interest
Rate Cap Agreement and (2) any Unpaid Basis Risk Shortfall for the Group I
Certificates for such Distribution Date not otherwise funded out of amounts
received on the Interest Rate Cap Agreement over (B) the amount of payments
of
Basis Risk Shortfalls and Unpaid Basis Risk Shortfalls made to the Group I
Certificates pursuant to Section 5.02(h)(v); provided, however, that the amount
of the Pool 1-2 Basis Risk Payment for any Distribution Date cannot exceed
the
amount of Pool 1-2 Monthly Excess Cashflow otherwise distributable in respect
of
the Class X-I Certificates pursuant to Section 5.02(h)(ix) hereof on such
Distribution Date (as determined under the definition of “X-I Component
Distributable Amount” without regard to the Pool 1-2 Basis Risk Payment for such
Distribution Date).
Pool
1-2 Basis Risk Reserve Fund:
A fund
created as part of the Trust Fund pursuant to Section 5.06 of this Agreement
but
which is not an asset of any of the REMICs.
Pool
1-2 Cumulative Loss Trigger Event:
With
respect to any Distribution Date, a Pool 1-2 Cumulative Loss Trigger Event
will
have occurred if the fraction, expressed as a percentage, obtained by dividing
(x) the aggregate amount of cumulative Realized Losses incurred on the Pool
1,
Pool 1C and Pool 2 Mortgage Loans from the Cut-off Date through the last day
of
the related Collection Period by (y) the Pool 1-2 Aggregate Loan Balance as
of
the Cut-off Date, exceeds the applicable percentages described below with
respect to such Distribution Date.
|
Distribution
Date
|
Loss
Percentage
|
|
|
August
2010 through July 2011
|
0.50%
for the first month plus an additional 1/12th of 0.35% for each month
thereafter.
|
|
|
August
2011 through July 2012
|
0.85%
for the first month plus an additional 1/12th of 0.40% for each month
thereafter.
|
|
|
August
2012 through July 2013
|
1.25%
for the first month plus an additional 1/12th of 0.45% for each month
thereafter.
|
|
|
August
2013 through July 2014
|
1.70%
for the first month plus an additional 1/12th of 0.15% for each month
thereafter.
|
|
|
August
2014 and thereafter
|
1.85%
|
Pool
1-2 Delinquency Event:
With
respect to any Distribution Date, a “Pool 1-2 Delinquency Event” shall occur if
the Pool 1-2 Rolling Three Month Delinquency Rate as of the last day of the
immediately preceding month equals or exceeds, for Distribution Dates prior
to
August 2013, 32.40%, and, for Distribution Dates during or after August 2013,
40.00% of the Pool 1-2 Senior Enhancement Percentage for such Distribution
Date.
Pool
1-2 Delinquency Rate:
With
respect to any calendar month, the fraction, expressed as a percentage, the
numerator of which is the aggregate outstanding principal balance of all Pool
1,
Pool 1C and Pool 2 Mortgage Loans that are 60 or more days Delinquent (including
all foreclosures, bankruptcies and REO Properties) as of the close of business
on the last day of such month, and the denominator of which is the Pool 1-2
Aggregate Loan Balance as of the close of business on the last day of such
month.
-79-
Pool
1-2 Initial Optional Termination Date:
The
Distribution Date following the month in which the Pool 1-2 Aggregate Loan
Balance initially declines to less than 10% of the Pool 1-2 Aggregate Loan
Balance as of the Cut-off Date.
Pool
1-2 Monthly Excess Cashflow:
With
respect to any Distribution Date, the sum of (x) the Pool 1-2 Monthly Excess
Interest for such date, (y) Pool 1-2 Overcollateralization Release Amount for
such date and (z) that portion, if any, of the Principal Distribution Amount
for
such date available for distribution pursuant to Section 5.02(d)(ii)(L)
hereof.
Pool
1-2 Monthly Excess Interest:
With
respect to any Distribution Date, that portion, if any, of the Interest
Remittance Amount available for distribution pursuant to Section 5.02(b)(i)(4),
Section 5.02(b)(ii)(4) or Section 5.02(b)(iii)(4) hereof for such
date.
Pool
1-2 Net Rate:
The per
annum rate set forth in footnote 1 to the description of REMIC I-1 in the
Preliminary Statement hereto (such rate being based on the weighted average
of
the interest rates on the SWAP REMIC Regular Interests as adjusted and as set
forth in such footnote).
Pool
1-2 Net WAC:
With
respect to any Distribution Date (and the related Accrual Period), a per annum
rate equal to (a) a fraction, expressed as a percentage, the numerator of which
is the product of (x) the Optimal Interest Remittance Amount for Pool 1, Pool
1C
and Pool 2 for such Distribution Date and (y) 12, and the denominator of which
is the Pool Balance for Pool 1, Pool 1C and Pool 2 as of the first day of the
related Collection Period (not including for this purpose Mortgage Loans for
which prepayments in full have been received and distributed in the month prior
to that Distribution Date), multiplied by (b) a fraction, the numerator of
which
is 30 and the denominator of which is the actual number of days in the Accrual
Period related to such Distribution Date.
Pool
1-2 Overcollateralization Amount:
With
respect to any Distribution Date, the amount, if any, by which (x) the Pool
1-2
Aggregate Loan Balance for such Distribution Date determined as of the last
day
of the related Collection Period exceeds (y) the aggregate Class Principal
Amount of the Group I Certificates after giving effect to distributions on
such
Distribution Date.
Pool
1-2 Overcollateralization Deficiency:
With
respect to any Distribution Date, the amount, if any, by which (x) the Pool
1-2
Targeted Overcollateralization Amount for such Distribution Date exceeds (y)
the
Pool 1-2 Overcollateralization Amount for such Distribution Date, calculated
for
this purpose after giving effect to the reduction on such Distribution Date
of
the aggregate Certificate Principal Amount of the Group I Certificates resulting
from the distribution of the Principal Distribution Amount for Pool 1, Pool
1C
and Pool 2 on such Distribution Date but prior to allocation of any Pool 1-2
Applied Loss Amount on such Distribution Date.
Pool
1-2 Overcollateralization Floor:
For any
Distribution Date, $5,715,835 (0.50% of the Pool Balance for Pool 1 as of the
Cut-off Date).
Pool
1-2 Overcollateralization Release Amount:
With
respect to any Distribution Date, the lesser of (x) the Principal Remittance
Amount for Pool 1, Pool 1C and Pool 2 for such Distribution Date and (y) the
amount, if any, by which (1) the Pool 1-2 Overcollateralization Amount for
such
Distribution Date (calculated for this purpose on the basis of the assumption
that 100% of the Principal Remittance Amount for Pool 1, Pool 1C and Pool 2
for
such date is applied on such Distribution Date in reduction of the aggregate
Certificate Principal Amount of the Group I Certificates), exceeds (2) the
Pool
1-2 Targeted Overcollateralization Amount for such Distribution
Date.
-80-
Pool
1-2 Purchase Price:
With
respect to the purchase of a Pool 1, Pool 1C or Pool 2 Mortgage Loan or related
REO Property pursuant to this Agreement, an amount equal to the sum of (a)
100%
of the unpaid principal balance of such Mortgage Loan, (b) accrued interest
thereon at the applicable Mortgage Rate, from the date as to which interest
was
last paid to (but not including) the Due Date in the Collection Period
immediately preceding the related Distribution Date; (c) any unreimbursed
Servicing Advances with respect to such Mortgage Loan; (d) any costs and damages
incurred by the Trust Fund with respect to such Mortgage Loan in connection
with
any violation of any federal, state or local predatory or abusive lending laws
or other similar laws; and (e) the fair market value of all other property
being
purchased (reduced, in the case of REO Property relating to a Pool 1, Pool
1C or
Pool 2 Mortgage Loan, by (1) reasonably anticipated disposition costs and (2)
any amount by which the fair market value as so reduced exceeds the outstanding
principal balance of the related Mortgage Loan). The Master Servicer and the
Servicer (or the Trustee, in its capacity as successor master servicer, if
applicable) shall be reimbursed from the Pool 1-2 Purchase Price for any Pool
1,
Pool 1C and Pool 2 Mortgage Loan or related REO Property for any Advances made
or other amounts advanced with respect to such Mortgage Loan that are
reimbursable to the Master Servicer or the Servicer under this Agreement or
the
Servicing Agreement (or to the Trustee hereunder in its capacity as successor
master servicer), together with any accrued and unpaid compensation due to
the
Master Servicer, the Servicer or the Trustee hereunder or
thereunder.
Xxxx
0-0 Xxxxxxxxxx Price:
As
defined in Section 7.01(b)(i).
Pool
1-2 Rolling Three Month Delinquency Rate:
With
respect to any Distribution Date, the average of the Pool 1-2 Delinquency Rates
for each of the three (or one and two, in the case of the first and second
Distribution Dates, respectively) immediately preceding calendar
months.
Pool
1-2 Senior Enhancement Percentage:
With
respect to any Distribution Date, the fraction, expressed as a percentage,
the
numerator of which is the sum of the aggregate Class Principal Amount of the
Group I Subordinate Certificates and the Pool 1-2 Overcollateralization Amount
(which amount, for purposes of this definition only, shall not be less than
zero
and assuming for purposes of this definition that the Principal Distribution
Amount has been distributed on such Distribution Date and no Pool 1-2 Trigger
Event has occurred) and the denominator of which is the Pool 1-2 Aggregate
Loan
Balance for such Distribution Date, in each case after giving effect to
distributions on such Distribution Date.
Pool
1-2 Senior Principal Distribution Amount:
For any
Distribution Date, an amount equal to (a) prior to the Pool 1-2 Stepdown Date
or
if a Pool 1-2 Trigger Event is in effect with respect to such Distribution
Date,
100% of the Principal Distribution Amounts for Pool 1, Pool 1C and Pool 2 and
(b) on or after the Pool 1-2 Stepdown Date and as long as a Pool 1-2 Trigger
Event is not in effect with respect to such Distribution Date, the amount,
if
any, by which (x) the aggregate Class Principal Amount of the Group I Senior
Certificates after the allocation of Net Negative Amortization, if any, for
each
Distribution Date and immediately prior to distributions on such Distribution
Date exceeds (y) the Pool 1-2 Senior Target Amount.
-81-
Pool
1-2 Senior Target Amount:
With
respect to any Distribution Date an amount equal to the lesser of (a) the
product of (1) (i) for each distribution prior to the Distribution Date in
August 2013, 78.38%; and (ii) thereafter, 82.70% and (2) the Pool 1-2 Aggregate
Loan Balance for such Distribution Date determined as of the last day of the
related Collection Period and (b) the amount, if any, by which (1) the Pool
1-2
Aggregate Loan Balance for such Distribution Date determined as of the last
day
of the related Collection Period exceeds (2) the Pool 1-2 Overcollateralization
Floor.
Pool
1-2 Stepdown Date:
The
later to occur of (x) the Distribution Date in August 2010 and (y) the first
Distribution Date on which the Pool 1-2 Senior Enhancement Percentage
(calculated for this purpose after giving effect to payments or other recoveries
in respect of the Pool 1, Pool 1C and Pool 2 Mortgage Loans during the related
Collection Period, but before giving effect to distributions on any Certificates
on such Distribution Date) is greater than or equal to (i) prior to the
Distribution Date in August 2013, 21.62% and (ii) on or after the Distribution
Date in August 2013, 17.30%.
Pool
1-2 Target Amount:
an
amount equal to the Pool 1-2 Aggregate Loan Balance as of such Distribution
Date
minus the Pool 1-2 Targeted Overcollateralization Amount for such Distribution
Date.
Pool
1-2 Targeted Overcollateralization Amount:
With
respect to any Distribution Date (x) prior to the Pool 1 Stepdown Date an amount
equal to $9,145,336 (0.80% of the Pool 1-2 Aggregate Loan Balance as of the
Cut-off Date), (y) on or after the Pool 1-2 Stepdown Date, the greater of (1)
the lesser of (a) the amount of $9,145,336 and (b) the product of (i) for each
distribution prior to the Distribution Date in August 2013, 2.00%, and
thereafter, 1.60% and (ii) the Pool 1-2 Aggregate Loan Balance as of the last
day of the related Collection Period and (2) the Pool 1-2 Overcollateralization
Floor and (z) on and after the Pool 1-2 Stepdown Date and for which a Pool
1-2
Trigger Event is in effect, the amount calculated under this definition for
the
immediately preceding Distribution Date.
Pool
1-2 Trigger Event:
With
respect to any Distribution Date, means that either a Pool 1-2 Delinquency
Event
or a Pool 1-2 Cumulative Loss Trigger Event is in effect for such Distribution
Date.
Pool
1C:
The
aggregate of the Mortgage Loans identified on the Mortgage Loan Schedule as
being included in Pool 1C.
Pool
1C Mortgage Loan:
A
Mortgage in Pool 1C and the related notes or other evidences of indebtedness
secured by each such Mortgage conveyed, transferred, sold, assigned to or
deposited with the Trustee pursuant to Section 2.01 or Section 2.05, including
without limitation, each Pool 1C Mortgage Loan listed on the Mortgage Loan
Schedule, as amended from time to time.
-00-
Xxxx
0X Xxx Xxxxx Xxx:
With
respect to any Distribution Date, an annual rate equal to (a) a fraction,
expressed as a percentage, the numerator of which is the product of (1) the
excess, if any, of (x) the Optimal Interest Remittance Amount for Pool 1C for
such Distribution Date over (y) the amount of any Net Swap Payment or Swap
Termination Payment not due to a Swap Counterparty Trigger Event owed to the
Swap Counterparty on the related due date allocable to Pool 1C (based on the
applicable Swap Allocation Percentage) and (2) 12, and the denominator of which
is the Pool Balance for Pool 1C as of the first day of the related Collection
Period (not including for this purpose Mortgage Loans for which prepayments
in
full have been received and distributed in the month prior to that Distribution
Date), multiplied by (b) a fraction, the numerator of which is 30 and the
denominator of which is the actual number of days in the Accrual Period related
to such Distribution Date.
Pool
1C Senior Certificates:
The
Class 1C-A1, Class 1C-A2 and Class 1C-A3 Certificates.
Pool
1C Senior Priority: For the Pool 1C Senior Certificates, sequentially in the
following order: (i) up to the amount of any Net Negative Amortization
previously allocated to such Certificates and not repaid, to the Pool 1C Senior
Certificates pro rata based on the amount of such unpaid prior allocations
of
Net Negative Amortization to each class thereof and (ii) pro rata, to the Pool
1C Senior Certificates.
Pool
2:
The
aggregate of the Mortgage Loans identified on the Mortgage Loan Schedule as
being included in Pool 2.
Pool
2
Mortgage Loan:
A
Mortgage in Pool 2 and the related notes or other evidences of indebtedness
secured by each such Mortgage conveyed, transferred, sold, assigned to or
deposited with the Trustee pursuant to Section 2.01 or Section 2.05, including
without limitation, each Pool 2 Mortgage Loan listed on the Mortgage Loan
Schedule, as amended from time to time.
Pool
2
Net Funds Cap:
With
respect to any Distribution Date, an annual rate equal to (a) a fraction,
expressed as a percentage, the numerator of which is the product of (1) the
excess, if any, of (x) the Optimal Interest Remittance Amount for Pool 2 for
such Distribution Date over (y) the amount of any Net Swap Payment or Swap
Termination Payment not due to a Swap Counterparty Trigger Event owed to the
Swap Counterparty on the related due date allocable to Pool 2 (based on the
applicable Swap Allocation Percentage) and (2) 12, and the denominator of which
is the Pool Balance for Pool 2 as of the first day of the related Collection
Period (not including for this purpose Mortgage Loans for which prepayments
in
full have been received and distributed in the month prior to that Distribution
Date), multiplied by (b) a fraction, the numerator of which is 30 and the
denominator of which is the actual number of days in the Accrual Period related
to such Distribution Date.
Pool
2
Senior Certificates:
The
Class 2-A1, Class 2-A2 and Class 2-A3 Certificates.
Pool
2
Senior Priority: For the Pool 2 Senior Certificates, sequentially in the
following order: (i) up to the amount of any Net Negative Amortization
previously allocated to such Certificates and not repaid, to the Pool 2 Senior
Certificates pro rata based on the amount of such unpaid prior allocations
of
Net Negative Amortization to each class thereof and (ii) pro rata, to the Pool
2
Senior Certificates.
-83-
Pool
3:
The
aggregate of the Mortgage Loans identified on the Mortgage Loan Schedule as
being included in Pool 3.
Pool
3
Assets:
As
defined in Section 7.01(b)(ii).
Pool
3
Maximum Interest Rate:
For any
Distribution Date and the Pool 3 Senior Certificates, an annual rate equal
to
the Pool 3 Net Funds Cap for such Distribution Date if the Optimal Interest
Remittance Amount for Pool 3 was computed by reference to the weighted average
of the excess of the Maximum Rates for the Pool 3 Mortgage Loans over the
Servicing Fee Rate or General Servicing Fee Rate, as applicable, and any
mortgage insurance premium rate, as applicable.
Pool
3
Mortgage Loan:
A
Mortgage in Pool 3 and the related notes or other evidences of indebtedness
secured by each such Mortgage conveyed, transferred, sold, assigned to or
deposited with the Trustee pursuant to Section 2.01 or Section 2.05, including
without limitation, each Pool 3 Mortgage Loan listed on the Mortgage Loan
Schedule, as amended from time to time.
Pool
3
Net Funds Cap:
With
respect to any Distribution Date and the Pool 3 Senior Certificates, the excess
of (1) an annual rate equal to (a) a fraction, expressed as a percentage, the
numerator of which is the product of (x) the Optimal Interest Remittance Amount
for Pool 3 for such Distribution Date and (y) 12, and the denominator of which
is the Pool Balance of Pool 3 as of the first day of the related Collection
Period (not including for this purpose mortgage loans for which prepayments
in
full have been received and distributed in the month prior to that Distribution
Date) multiplied by (b) a fraction, the numerator of which is 30 and the
denominator of which is the actual number of days in the Accrual Period related
to such Distribution Date over (2) the sum of (a) the product of (I) 50% of
the
interest rate applicable to the Class 3-AX Certificates for such Distribution
Date and (II) a fraction, the numerator of which is 30 and the denominator
of
which is the actual number of days in the Accrual Period related to such
Distribution Date and (b) a fraction the numerator of which is (I) the product
of (A) 360 divided by the actual number of days in the Accrual Period related
to
such Distribution Date and (B) the portion of the Certificate Insurer Premium
attributable to the Class 3-A2 Certificates, and the denominator of which is
(II) the aggregate Class Principal Amount of the Pool 3 Senior
Certificates.
Pool
3
Net WAC:
With
respect to any Distribution Date, an annual rate equal to a fraction, expressed
as a percentage, the numerator of which is the product of (x) the excess of
the
Optimal Interest Remittance Amount for Pool 3 for such Distribution Date over
the portion of the Certificate Insurer Premium for such Distribution Date
attributable to the Class 3-A2 Certificates, and (y) 12, and the denominator
of
which is the Pool Balance of Pool 3 as of the first day of the related
Collection Period (not including for this purpose mortgage loans for which
prepayments in full have been received and distributed in the month prior to
that Distribution Date).
-84-
Pool
3
Senior Certificates:
The
Class 3-A1, Class 3-A2 and Class 3-AX Certificates.
Pool
3
Senior Priority: For the Pool 3 Senior Certificates, sequentially in the
following order: (i) up to the amount of any Net Negative Amortization
previously allocated to such Certificates and not repaid, to the Pool 3 Senior
Certificates pro rata based on the amount of such unpaid prior allocations
of
Net Negative Amortization to each class thereof and (ii) pro rata, to the Pool
3
Senior Certificates.
Pool
3
Senior REMIC Cap:
The per
annum rate set forth in footnote 2 to the table entitled “REMIC II-1” in the
Preliminary Statement.
Pool
3-4 Aggregate Loan Balance: With
respect to any Distribution Date, the total Scheduled Principal Balance of
the
Mortgage Loans in Pool 3 and Pool 4 for that Distribution Date.
Pool
3-4 Applied Loss Amount:
With
respect to any Distribution Date, the amount, if any, by which (x) the aggregate
Certificate Principal Amount of the Group II Certificates after giving effect
to
all Realized Losses incurred with respect to the Pool 3 and Pool 4 Mortgage
Loans during the related Collection Period and distributions of principal on
such Distribution Date, but before giving effect to any application of the
Pool
3-4 Applied Loss Amount with respect to such date, exceeds (y) the Pool 3-4
Aggregate Loan Balance for such Distribution Date.
Pool
3-4 Assets:
As
defined in Section 7.01(b)(i).
Pool
3-4 Basis Risk Payment:
For any
Distribution Date and the Group II Certificates, the sum of (1) any Basis Risk
Shortfall for the Group II Certificates for such Distribution Date and (2)
any
Unpaid Basis Risk Shortfall for the Group II Certificates for such Distribution
Date; provided, however, that the amount of the Pool 3-4 Basis Risk Payment
for
any Distribution Date cannot exceed the amount of Pool 3-4 Monthly Excess
Cashflow otherwise distributable in respect of the Class X-II Certificates
pursuant to Section 5.02(g) hereof on such Distribution Date (as determined
under the definition of “Class X-II Distributable Amount” without regard to the
Pool 3-4 Basis Risk Payment for such Distribution Date).
Pool
3-4 Basis Risk Reserve Fund:
A fund
created as part of the Trust Fund pursuant to Section 5.06 of this Agreement
but
which is not an asset of any of the REMICs.
Pool
3-4 Cumulative Loss Trigger Event:
With
respect to any Distribution Date, a Pool 3-4 Cumulative Loss Trigger Event
will
have occurred if the fraction, expressed as a percentage, obtained by dividing
(x) the aggregate amount of cumulative Realized Losses incurred on the Pool
3
and Pool 4 Mortgage Loans from the Cut-off Date through the last day of the
related Collection Period by (y) the Pool 3-4 Aggregate Loan Balance as of
the
Cut-off Date, exceeds the applicable percentages described below with respect
to
such Distribution Date.
|
Distribution
Date
|
Loss
Percentage
|
|
|
August
2010 through July 2011
|
0.45%
for the first month plus an additional 1/12th of 0.35% for each month
thereafter.
|
|
|
August
2011 through July 2012
|
0.80%
for the first month plus an additional 1/12th of 0.35% for each month
thereafter.
|
|
|
August
2012 through July 2013
|
1.15%
for the first month plus an additional 1/12th of 0.45% for each month
thereafter.
|
|
|
August
2013 through July 2014
|
1.60%
for the first month plus an additional 1/12th of 0.15% for each month
thereafter.
|
|
|
August
2014 and thereafter
|
1.75%
|
-85-
Pool
3-4 Delinquency Event:
With
respect to any Distribution Date, a “Pool 3-4 Delinquency Event” shall occur if
the Pool 3-4 Rolling Three Month Delinquency Rate as of the last day of the
immediately preceding month equals or exceeds, for Distribution Dates prior
to
August 2013, 23.25%, and, for Distribution Dates during or after August 2013,
29.05% of the Pool 3-4 Senior Enhancement Percentage for such Distribution
Date.
Pool
3-4 Delinquency Rate:
With
respect to any calendar month, the fraction, expressed as a percentage, the
numerator of which is the aggregate outstanding principal balance of all Pool
3
and Pool 4 Mortgage Loans that are 60 or more days Delinquent (including all
foreclosures, bankruptcies and REO Properties) as of the close of business
on
the last day of such month, and the denominator of which is the Pool 3-4
Aggregate Loan Balance as of the close of business on the last day of such
month.
Pool
3-4 Initial Optional Termination Date:
The
Distribution Date following the month in which the Pool 3-4 Aggregate Loan
Balance initially declines to less than 10% of the Pool 3-4 Aggregate Loan
Balance as of the Cut-off Date.
Pool
3-4 Monthly Excess Cashflow:
With
respect to any Distribution Date, the sum of (x) the Pool 3-4 Monthly Excess
Interest for such date, (y) Pool 3-4 Overcollateralization Release Amount for
such date and (z) that portion, if any, of the Principal Distribution Amount
for
such date available for distribution pursuant to Section 5.02(e)(iii)(L)
hereof.
Pool
3-4 Monthly Excess Interest:
With
respect to any Distribution Date, that portion, if any, of the Interest
Remittance Amount available for distribution pursuant to Section 5.02(c)(i)(4),
Section 5.02(c)(ii)(4) or Section 5.02(c)(iii)(6) hereof for such
date.
Pool
3-4 Overcollateralization Amount:
With
respect to any Distribution Date, the amount, if any, by which (x) the Pool
3-4
Aggregate Loan Balance for such Distribution Date determined as of the last
day
of the related Collection Period exceeds (y) the aggregate Class Principal
Amount of the Group II Certificates after giving effect to distributions on
such
Distribution Date.
Pool
3-4 Overcollateralization Deficiency:
With
respect to any Distribution Date, the amount, if any, by which (x) the Pool
3-4
Targeted Overcollateralization Amount for such Distribution Date exceeds (y)
the
Pool 3-4 Overcollateralization Amount for such Distribution Date, calculated
for
this purpose after giving effect to the reduction on such Distribution Date
of
the aggregate Certificate Principal Amount of the Group II Certificates
resulting from the distribution of the Principal Distribution Amount for Pool
3
and Pool 4 on such Distribution Date but prior to allocation of any Pool 3-4
Applied Loss Amount on such Distribution Date.
-86-
Pool
3-4 Overcollateralization Floor:
For any
Distribution Date, $8,424,177 (0.50% of the Pool Balance for Pool 1 as of the
Cut-off Date).
Pool
3-4 Overcollateralization Release Amount:
With
respect to any Distribution Date, the lesser of (x) the Principal Remittance
Amount for Pool 3 and Pool 4 for such Distribution Date and (y) the amount,
if
any, by which (1) the Pool 3-4 Overcollateralization Amount for such
Distribution Date (calculated for this purpose on the basis of the assumption
that 100% of the Principal Remittance Amount for Pool 3 and Pool 4 for such
date
is applied on such Distribution Date in reduction of the aggregate Certificate
Principal Amount of the Group II Certificates), exceeds (2) the Pool 3-4
Targeted Overcollateralization Amount for such Distribution Date.
Pool
3-4 Purchase Price:
With
respect to the purchase of a Pool 3 or Pool 4 Mortgage Loan or related REO
Property pursuant to this Agreement, an amount equal to the sum of (a) 100%
of
the unpaid principal balance of such Mortgage Loan, (b) accrued interest thereon
at the applicable Mortgage Rate, from the date as to which interest was last
paid to (but not including) the Due Date in the Collection Period immediately
preceding the related Distribution Date; (c) any unreimbursed Servicing Advances
with respect to such Mortgage Loan; (d) any costs and damages incurred by the
Trust Fund with respect to such Mortgage Loan in connection with any violation
of any federal, state or local predatory or abusive lending laws or other
similar laws and (e) the fair market value of all other property being purchased
(reduced, in the case of REO Property relating to a Pool 3 or Pool 4 Mortgage
Loan, by (1) reasonably anticipated disposition costs and (2) any amount by
which the fair market value as so reduced exceeds the outstanding principal
balance of the related Mortgage Loan). The Master Servicer and the Servicer
(or
the Trustee, in its capacity as successor master servicer, if applicable) shall
be reimbursed from the Pool 3-4 Purchase Price for any Pool 3 and Pool 4
Mortgage Loan or related REO Property for any Advances made or other amounts
advanced with respect to such Mortgage Loan that are reimbursable to the Master
Servicer or the Servicer under this Agreement or the Servicing Agreement (or
to
the Trustee hereunder in its capacity as successor master servicer), together
with any accrued and unpaid compensation due to the Master Servicer, the
Servicer or the Trustee hereunder or thereunder.
Xxxx
0-0 Xxxxxxxxxx Price:
As
defined in Section 7.01(b)(ii).
Pool
3-4 Rolling Three Month Delinquency Rate:
With
respect to any Distribution Date, the average of the Pool 3-4 Delinquency Rates
for each of the three (or one and two, in the case of the first and second
Distribution Dates, respectively) immediately preceding calendar
months.
Pool
3-4 Senior Enhancement Percentage:
With
respect to any Distribution Date, the fraction, expressed as a percentage,
the
numerator of which is the sum of the aggregate Class Principal Amount of the
Group II Subordinate Certificates and the Pool 3-4 Overcollateralization Amount
(which amount, for purposes of this definition only, shall not be less than
zero
and assuming for purposes of this definition that the Principal Distribution
Amount has been distributed on such Distribution Date and no Pool 3-4 Trigger
Event has occurred) and the denominator of which is the Pool 3-4 Aggregate
Loan
Balance for such Distribution Date, in each case after giving effect to
distributions on such Distribution Date.
-87-
Pool
3-4 Senior Principal Distribution Amount:
For any
Distribution Date, an amount equal to (a) prior to the Pool 3-4 Stepdown Date
or
if a Pool 3-4 Trigger Event is in effect with respect to such Distribution
Date,
100% of the Principal Distribution Amounts for Pool 3 and Pool 4 and (b) on
or
after the Pool 3-4 Stepdown Date and as long as a Pool 3-4 Trigger Event is
not
in effect with respect to such Distribution Date, the amount, if any, by which
(x) the aggregate Class Principal Amount of the Group II Senior Certificates
after the allocation of Net Negative Amortization, if any, for each Distribution
Date and immediately prior to distributions on such Distribution Date exceeds
(y) the Pool 3-4 Senior Target Amount.
Pool
3-4 Senior Target Amount:
With
respect to any Distribution Date an amount equal to the lesser of (a) the
product of (1) (i) for each distribution prior to the Distribution Date in
August 2013, 69.88%; and (ii) thereafter, 75.90% and (2) the Pool 3-4 Aggregate
Loan Balance for such Distribution Date determined as of the last day of the
related Collection Period and (b) the amount, if any, by which (1) the Pool
3-4
Aggregate Loan Balance for such Distribution Date determined as of the last
day
of the related Collection Period exceeds (2) the Pool 3-4 Overcollateralization
Floor.
Pool
3-4 Stepdown Date:
The
later to occur of (x) the Distribution Date in August 2010 and (y) the first
Distribution Date on which the Pool 3-4 Senior Enhancement Percentage
(calculated for this purpose after giving effect to payments or other recoveries
in respect of the Pool 3 and Pool 4 Mortgage Loans during the related Collection
Period, but before giving effect to distributions on any Certificates on such
Distribution Date) is greater than or equal to (i) prior to the Distribution
Date in August 2013, 30.12% and (ii) on or after the Distribution Date in August
2013, 24.10%.
Pool
3-4 Target Amount:
an
amount equal to the Pool 3-4 Aggregate Loan Balance as of such Distribution
Date
minus the Pool 3-4 Targeted Overcollateralization Amount for such Distribution
Date.
Pool
3-4 Targeted Overcollateralization Amount:
With
respect to any Distribution Date (x) prior to the Pool 1 Stepdown Date an amount
equal to $18,533,190 (1.10% of the Pool 3-4 Aggregate Loan Balance as of the
Cut-off Date), (y) on or after the Pool 3-4 Stepdown Date, the greater of (1)
the lesser of (a) the amount of $18,533,190 and (b) the product of (i) for
each
distribution prior to the Distribution Date in August 2013, 2.75%, and
thereafter, 2.20% and (ii) the Pool 3-4 Aggregate Loan Balance as of the last
day of the related Collection Period and (2) the Pool 3-4 Overcollateralization
Floor and (z) on and after the Pool 3-4 Stepdown Date and for which a Pool
3-4
Trigger Event is in effect, the amount calculated under this definition for
the
immediately preceding Distribution Date.
Pool
3-4 Trigger Event:
With
respect to any Distribution Date, means that either a Pool 3-4 Delinquency
Event
or a Pool 3-4 Cumulative Loss Trigger Event is in effect for such Distribution
Date.
Pool
4:
The
aggregate of the Mortgage Loans identified on the Mortgage Loan Schedule as
being included in Pool 4.
Pool
4
Assets:
As
defined in Section 7.01(b)(ii).
-88-
Pool
4
Exchangeable Certificates: The Class 4-A1A, Class 4-A1B, Class 4-A1C, Class
4-A1D, Class 4-A1E, Class 4-A1F, Class 4-A1G, Class 4-A1H, Class 4-A1IA, Class
4-A1IB, Class 4-A1IC, Class 4-A1ID, Class 4-A1IE, Class 4-A1IF, Class 4-A1IG
and
Class 4-A1H Certificates.
Pool
4
Interest-Only Exchangeable Certificate: Class 4-A1IA, Class 4-A1IB, Class
4-A1IC, Class 4-A1ID, Class 4-A1IE, Class 4-A1IF, Class 4-A1IG and Class 4-A1IH
Certificates.
Pool
4
Maximum Interest Rate:
For any
Distribution Date and the Pool 4 Senior Certificates, an annual rate equal
to
the Pool 4 Net Funds Cap for such Distribution Date if the Optimal Interest
Remittance Amount for Pool 4 was computed by reference to the weighted average
of the excess of the Maximum Rates for the Pool 4 Mortgage Loans over the
Servicing Fee Rate or General Servicing Fee Rate, as applicable, and any
mortgage insurance premium rate, as applicable.
Pool
4
Mortgage Loan:
A
Mortgage in Pool 4 and the related notes or other evidences of indebtedness
secured by each such Mortgage conveyed, transferred, sold, assigned to or
deposited with the Trustee pursuant to Section 2.01 or Section 2.05, including
without limitation, each Pool 4 Mortgage Loan listed on the Mortgage Loan
Schedule, as amended from time to time.
Pool
4
Net Funds Cap:
With
respect to any Distribution Date and the Pool 4 Senior Certificates, the excess
of (1) an annual rate equal to (a) a fraction, expressed as a percentage, the
numerator of which is the product of (x) the Optimal Interest Remittance Amount
for Pool 4 for such Distribution Date and (y) 12, and the denominator of which
is the Pool Balance of Pool 4 as of the first day of the related Collection
Period (not including for this purpose mortgage loans for which prepayments
in
full have been received and distributed in the month prior to that Distribution
Date), multiplied by (b) a fraction, the numerator of which is 30 and the
denominator of which is the actual number of days in the Accrual Period related
to such Distribution Date over (2) the sum of (a) the product of (I) 50% of
the
interest rate applicable to the Class 4-AX Certificates for such Distribution
Date and (II) a fraction, the numerator of which is 30 and the denominator
of
which is the actual number of days in the Accrual Period related to such
Distribution Date and (b) a fraction the numerator of which is (I) the product
of (A) 360 divided by the actual number of days in the Accrual Period related
to
such Distribution Date and (B) the portion of the Certificate Insurer Premium
attributable to the Class 4-A3 Certificates, and the denominator of which is
(II) the aggregate Class Principal Amount of the Pool 4 Senior
Certificates.
Pool
4
Net WAC:
With
respect to any Distribution Date, an annual rate equal to a fraction, expressed
as a percentage, the numerator of which is the product of (x) the excess of
the
Optimal Interest Remittance Amount for Pool 4 for such Distribution Date over
the portion of the Certificate Insurer Premium for such Distribution Date
attributable to the Class 4-A3 Certificates, and (y) 12, and the denominator
of
which is the Pool Balance of Pool 4 as of the first day of the related
Collection Period (not including for this purpose mortgage loans for which
prepayments in full have been received and distributed in the month prior to
that Distribution Date).
-89-
Pool
4
Senior Certificates:
The
Class 4-A1 Underlying Interest, Class 4-A2A Underlying Interest, Class 4-A2B
Underlying Interest, Class 4-A3 Underlying Interest and Class 4-AX
Certificates.
Pool
4
Senior Priority: Pro rata (a) to the Class 4-A1 Underlying
Interest,
(b)
sequentially, first, to the Class 4-A2A Underlying
Interest
and
second, to the Class 4-A2B Underlying
Interest,
in that
order, and (c) to the Class 4-A3 Underlying
Interest.
Pool
4
Senior REMIC Cap:
The per
annum rate set forth in footnote 3 to the table entitled “REMIC II-1” in the
Preliminary Statement.
Pool
Assets:
Not
applicable.
Pool
Balance:
As to
each Mortgage Pool and any Distribution Date or the Cut-off Date, the sum of
the
Scheduled Principal Balances of the Mortgage Loans included in such Mortgage
Pool for that date.
Pool
Percentage:
For
Pool 1, Pool 1C or Pool 2 and any Distribution Date, a fraction, the numerator
of which is the Pool Balance for such Mortgage Pool for such Distribution Date
and the denominator of which is the Pool 1-2 Aggregate Loan Balance for such
Distribution Date. For Pool 3 or Pool 4 and any Distribution Date, a fraction,
the numerator of which is the Pool Balance for such Mortgage Pool for such
Distribution Date and the denominator of which is the Pool 3-4 Aggregate Loan
Balance for such Distribution Date.
Pool
Subordinate Amount:
With
respect to any Mortgage Pool and any Distribution Date, the excess of the Pool
Balance for such Mortgage Pool for the immediately preceding Distribution Date
(or on the Cut-off Date in the case of the first Distribution Date) over the
aggregate Class Principal Amount of the related Senior Certificates immediately
prior to the related Distribution Date.
Preference
Amount:
Any
payment of principal or interest previously distributed to a Holder on a
Guaranteed Certificate which would have been covered under the Certificate
Insurance Policy as an Insured Amount, which has been deemed a preferential
transfer and was previously recovered from its Holder pursuant to the United
States Bankruptcy Code in accordance with a final, nonappealable order of a
court of competent jurisdiction.
Preference
Claim:
Not
applicable.
Premium
Percentage:
With
respect to the Class 3-A2 Certificates, 0.13% per annum and with respect to
the
Class 4-A3 Certificates, 0.14% per annum.
Prepayment
Interest Excess:
With
respect to any Distribution Date and any Principal Prepayment in full received
on the Mortgage Loans serviced by Aurora from the first day through the
sixteenth day of the month during which such Distribution Date occurs, all
amounts paid in respect of interest at the applicable Net Mortgage Rate on
such
Principal Prepayment in full.
-90-
Prepayment
Interest Shortfall:
With
respect to any Distribution Date and any Principal Prepayment, the difference
between (i) one full month’s interest at the applicable Net Mortgage Rate (after
giving effect to any applicable Relief Act Reduction) on the outstanding
principal balance of such Mortgage Loan immediately prior to such prepayment
and
(ii) the amount of interest actually received with respect to such Mortgage
Loan
in connection with such Principal Prepayment.
Prepayment
Period:
With
respect to any Distribution Date and any Principal Prepayment (including any
liquidation) in full or in part (except prepayments in part or in full received
by Countrywide Servicing and prepayments in full received by Aurora), the
calendar month immediately preceding the month in which such Distribution Date
occurs; provided, however, that the Prepayment Period for Principal Prepayments
in full for Mortgage Loans serviced by Aurora will be the seventeenth day of
the
calendar month immediately preceding the month in which such Distribution Date
occurs through the sixteenth day of the calendar month in which such
Distribution Date occurs and provided further, however, that the Prepayment
Period for Principal Prepayments in full or in part for Countrywide Servicing
will be the 2nd day of the calendar month immediately preceding the month in
which such Distribution Date occurs through the first day of the calendar month
in which such Distribution Date occurs.
Prepayment
Premiums:
With
respect to any Distribution Date, all premiums or charges paid by the obligors
under the related Mortgage Notes due to Principal Prepayments and required
to be
remitted to the Custodial Accounts pursuant to the Servicing Agreements and
are
remitted to the Collection Account during the immediately preceding Prepayment
Period, if any.
Primary
Mortgage Insurance Policy:
Any
mortgage guaranty insurance, if any, on an individual Mortgage Loan as evidenced
by a policy or certificate, whether such policy is obtained by the originator,
the lender or the borrower.
Principal
Allocation Percentage:
For
Pool 1 with respect to any Distribution Date, a fraction, expressed as a
percentage, the numerator of which is the Principal Remittance Amount for Pool
1
for such Distribution Date and the denominator of which is the aggregate of
the
Principal Remittance Amounts for Pool 1, Pool 1C and Pool 2 for such date.
For
Pool 1C with respect to any Distribution Date, a fraction, expressed as a
percentage, the numerator of which is the Principal Remittance Amount for Pool
1C for such Distribution Date and the denominator of which is the aggregate
of
the Principal Remittance Amounts for Pool 1, Pool 1C and Pool 2 for such date.
For Pool 2 with respect to any Distribution Date, a fraction, expressed as
a
percentage, the numerator of which is the Principal Remittance Amount for Pool
2
for such Distribution Date, and the denominator of which is the aggregate of
the
Principal Remittance Amounts for Pool 1, Pool 1C and Pool 2 for such date.
For
Pool 3 with respect to any Distribution Date, a fraction, expressed as a
percentage, the numerator of which is the Principal Remittance Amount for Pool
3
for such Distribution Date, and the denominator of which is the aggregate of
the
Principal Remittance Amounts for Pool 3 and Pool 4 for such date. For Pool
4
with respect to any Distribution Date, a fraction, expressed as a percentage,
the numerator of which is the Principal Remittance Amount for Pool 4 for such
Distribution Date, and the denominator of which is the aggregate of the
Principal Remittance Amounts for Pool 3 and Pool 4 for such date.
-00-
Xxxxxxxxx
Xxxxxxxxxxxx Xxxxxx:
With
respect to any Distribution Date and for Pool 1, Pool 1C and Pool 2, an amount
equal to the Principal Remittance Amount for such date for such Mortgage Pool
minus the Pool 1-2 Overcollateralization Release Amount attributable to such
Mortgage Pool, based on the Principal Allocation Percentage for such Pool,
if
any, for such Distribution Date. With respect to any Distribution Date and
for
Pool 3 and Pool 4, an amount equal to the Principal Remittance Amount for such
date for such Mortgage Pool minus the Pool 3-4 Overcollateralization Release
Amount attributable to such Mortgage Pool, based on the Principal Allocation
Percentage for such Pool, if any, for such Distribution Date.
Principal
Prepayment:
Any
Mortgagor payment of principal (other than a Balloon Payment) or other recovery
of principal on a Mortgage Loan that is recognized as having been received
or
recovered in advance of its scheduled Due Date and applied to reduce the
principal balance of the Mortgage Loan in accordance with the terms of the
Mortgage Note or the applicable Servicing Agreement.
Principal
Remittance Amount:
With
respect to each Mortgage Pool and any Distribution Date, an amount equal to
(a)
the sum of (1) all principal collected (other than in connection with Payaheads)
or advanced in respect of Scheduled Payments on the Mortgage Loans in such
Mortgage Pool during the related Collection Period whether by a Servicer, the
Master Servicer or the Trustee in its capacity as successor master servicer
(less unreimbursed Advances due to the Master Servicer, the applicable Servicer
or the Trustee, in its capacity as successor master servicer, with respect
to
the related Mortgage Loans, to the extent allocable to principal, and any
unreimbursed Servicing Advances), (2) all Principal Prepayments in full or
in
part received during the related Prepayment Period with respect to the Mortgage
Loans in such Mortgage Pool, (3) the outstanding principal balance of each
Mortgage Loan in such Mortgage Pool that was repurchased by the Seller or the
Transferor during the related Prepayment Period or any NIMS Insurer (in the
case
of certain Mortgage Loans 90 days or more delinquent), (4) the principal portion
of any Substitution Amount paid with respect to any Deleted Mortgage Loan in
such Mortgage Pool during the related Prepayment Period allocable to principal
and (5) all Net Liquidation Proceeds, Insurance Proceeds, any Subsequent
Recovery and other recoveries collected with respect to the Mortgage Loans
in
such Mortgage Pool during the related Prepayment Period, to the extent allocable
to principal, as reduced (but not by more than the sum of items (1) through
(5)
above) by the aggregate amount of Negative Amortization with respect to the
Mortgage Loans in such Mortgage Pool during the related Collection Period,
reduced by (b) other costs, expenses or liabilities reimbursable to the Trustee,
the Master Servicer, the Certificate Insurer and any Servicer to the extent
provided in this Agreement and the applicable Servicing Agreement or to the
Custodian pursuant to the Custodial Agreement, as applicable to each Mortgage
Pool from the Interest Remittance Amount described in clause (b) of the
definition thereof and not reimbursed therefrom or otherwise.
Privately
Offered Certificates:
The
Class AP-I, Class 3-AP and Class 4-AP Certificates.
Proceeding:
Not
applicable.
Proprietary
Lease:
With
respect to any Cooperative Unit, a lease or occupancy agreement between a
Cooperative Corporation and a holder of related Cooperative Shares.
-92-
Prospectus:
The
prospectus supplement dated July 30, 2007, the supplement to the prospectus
supplement dated August 3, 2007 and the supplement to the prospectus supplement
dated August 7, 2007 together with the accompanying prospectus dated July 11,
2007, relating to the Offered Certificates.
PTCE:
As
defined in Section 3.03(d).
Purchase
Price:
Either
of the Pool 1-2 Purchase Price or the Pool 3-4 Purchase Price.
QIB:
As
defined in Section 3.03(c).
QIB-Restricted
Certificate:
Any
Class C Certificate.
Qualified
GIC:
A
guaranteed investment contract or surety bond providing for the investment
of
funds in the Collection Account or the Certificate Account and insuring a
minimum, fixed or floating rate of return on investments of such funds, which
contract or surety bond shall:
(i) be
an
obligation of an insurance company or other corporation whose long term debt
is
rated by each Rating Agency in one of its two highest rating categories or,
if
such insurance company has no long term debt, whose claims paying ability is
rated by each Rating Agency in one of its two highest rating categories, and
whose short-term debt is rated by each Rating Agency in its highest rating
category;
(ii) provide
that the Trustee may exercise all of the rights under such contract or surety
bond without the necessity of taking any action by any other
Person;
(iii) provide
that if at any time the then current credit standing of the obligor under such
guaranteed investment contract is such that continued investment pursuant to
such contract of funds would result in a downgrading of any rating of the
Certificates (which in the case of the Guaranteed Certificates shall be
determined without regard to the Certificate Insurance Policy) or the NIM
Securities, the Trustee shall terminate such contract without penalty and be
entitled to the return of all funds previously invested thereunder, together
with accrued interest thereon at the interest rate provided under such contract
to the date of delivery of such funds to the Trustee;
(iv) provide
that the Trustee’s interest therein shall be transferable to any successor
trustee hereunder; and
(v) provide
that the funds reinvested thereunder and accrued interest thereon be returnable
to the Collection Account or the Certificate Account, as the case may be, not
later than the Business Day prior to any Distribution Date.
Qualified
Insurer:
Not
applicable.
-93-
Qualifying
Substitute Mortgage Loan:
In the
case of a Mortgage Loan substituted for a Deleted Mortgage Loan pursuant to
the
terms of this Agreement, a Mortgage Loan that, on the date of such substitution,
(i) has an outstanding Scheduled Principal Balance (or in the case of a
substitution of more than one mortgage loan for a Deleted Mortgage Loan, an
aggregate Scheduled Principal Balance), after application of all Scheduled
Payments due during or prior to the month of substitution, not in excess of,
and
not more than 5% less than, the outstanding Scheduled Principal Balance of
the
Deleted Mortgage Loan as of the Due Date in the calendar month during which
the
substitution occurs, (ii) has a Mortgage Rate not less than the Mortgage Rate
on
the Deleted Mortgage Loan, (iii) if applicable, has a maximum Mortgage Rate
not
less than the maximum Mortgage Rate on the Deleted Mortgage Loan, (iv) if
applicable, has a minimum Mortgage Rate not less than the minimum Mortgage
Rate
of the Deleted Mortgage Loan, (v) if applicable, has a gross margin equal to
or
greater than the gross margin of the Deleted Mortgage Loan, (vi) is not a
Cooperative Loan unless the related Deleted Mortgage Loan was a Cooperative
Loan, (vii) if applicable, has a next adjustment date not later than the next
adjustment date on the Deleted Mortgage Loan, (viii) has the same Due Date
as
the Deleted Mortgage Loan, (ix) has a remaining stated term to maturity not
longer than 18 months and not more than 18 months shorter than the remaining
stated term to maturity of the related Deleted Mortgage Loan, (x) is current
as
of the date of substitution, (xi) has a Loan-to-Value Ratio as of the date
of
substitution equal to or lower than the Loan-to-Value Ratio of the Deleted
Mortgage Loan as of such date, (xii) has been underwritten by a Transferor
in
accordance with the same underwriting criteria and guidelines as the Deleted
Mortgage Loan, (xiii) has a risk grading determined by the Seller at least
equal
to the risk grading assigned on the Deleted Mortgage Loan, (xiv) is secured
by
the same property type as the Deleted Mortgage Loan, (xv) conforms to each
representation and warranty applicable to the Deleted Mortgage Loan made in
the
Mortgage Loan Sale Agreement, (xvi) has the same or higher lien position as
the
Deleted Mortgage Loan, (xvii) is covered by a Primary Mortgage Insurance Policy
if the Deleted Mortgage Loan was so covered and (xviii) contains provisions
covering the payment of Prepayment Premium by the Mortgagor for early prepayment
of the Mortgage Loan at least as favorable as the Deleted Mortgage Loan. In
the
event that one or more mortgage loans are substituted for one or more Deleted
Mortgage Loans, the amounts described in clause (i) hereof shall be determined
on the basis of aggregate Scheduled Principal Balances, the Mortgage Rates
described in clause (ii) hereof shall be determined on the basis of weighted
average Mortgage Rates, the risk gradings described in clause (xiii) hereof
shall be satisfied as to each such mortgage loan, the terms described in clause
(ix) hereof shall be determined on the basis of weighted average remaining
term
to maturity, the Loan-to-Value Ratios described in clause (xi) hereof shall
be
satisfied as to each such mortgage loan and, except to the extent otherwise
provided in this sentence, the representations and warranties described in
clause (xv) hereof must be satisfied as to each Qualified Substitute Mortgage
Loan or in the aggregate, as the case may be.
Rate
of Payment: For each Distribution Date and for the Swap Agreement, the rates
of payment set forth in Schedule B hereto.
Rating
Agency:
Each of
Fitch, Xxxxx’x and S&P.
Realized
Loss:
With
respect to each Liquidated Mortgage Loan, an amount equal to (i) the unpaid
principal balance of such Mortgage Loan as of the date of liquidation, minus
(ii) Liquidation Proceeds received, to the extent allocable to principal, net
of
amounts that are reimbursable therefrom to the Master Servicer or the Servicer
with respect to such Mortgage Loan (other than Advances of principal) including
expenses of liquidation. In determining whether a Realized Loss is a Realized
Loss of principal, Liquidation Proceeds shall be allocated, first,
to
payment of expenses related to such Liquidated Mortgage Loan, then to accrued
unpaid interest and finally to reduce the principal balance of the Mortgage
Loan.
-94-
Recognition
Agreement:
With
respect to any Cooperative Loan, an agreement between the related Cooperative
Corporation and the originator of such Mortgage Loan to establish the rights
of
such originator in the related Cooperative Property.
Record
Date:
With
respect to the Book-Entry Certificates other than the Class AP-I, Class 3-AP
and
Class 4-AP Certificates and any Distribution Date, the close of business on
the
Business Day immediately preceding such Distribution Date. With respect to
the
Class C-I, Class C-II, Class X-I, Class X-II, Class AP-I, Class 3-AP, Class
4-AP
and Class R Certificates and any Class of Definitive Certificates and any
Distribution Date, the last Business Day of the month immediately preceding
the
month in which the Distribution Date occurs (or, in the case of the first
Distribution Date, the Closing Date).
Regulation
AB:
Subpart
229.1100 - Asset Backed Securities (Regulation AB), 17 C.F.R.
§§229.1100-229.1123, as such may be amended from time to time, and subject to
such clarification and interpretation as have been provided by the Commission
in
the adopting release (Asset-Backed Securities, Securities Act Release No.
33-8518, 70 Fed Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the staff of the
Commission, or as may otherwise be provided by the Commission or its staff
from
time to time; and all references to any rule, item, section or subsection of,
or
definition or term contained in, Regulation AB mean such rule, item, section,
subsection, definition or term, as the case may be, or any successor thereto,
in
each case as the same may be amended from time to time.
Regulation
S:
Regulation S promulgated under the Act or any successor provision thereto,
in
each case as the same may be amended from time to time; and all references
to
any rule, section or subsection of, or definition or term contained in,
Regulation S means such rule, section, subsection, definition or term, as the
case may be, or any successor thereto, in each case as the same may be amended
from time to time.
Regulation
S Global Security:
As
defined in Section 3.01(d).
Reimbursement
Amount:
As to
any Distribution Date, the sum of (i) all Insured Payments paid by the
Certificate Insurer, but for which the Certificate Insurer has not been
reimbursed prior to such Distribution Date pursuant to Section 5.02, plus (ii)
interest accrued on such Insured Payments not previously repaid calculated
at
the Late Payment Rate from the date the Trustee received the related Insured
Payments.
Related
Certificates:
For any
REMIC I-2 Interest, the Class of Certificates set forth on the same row in
the
table under “REMIC I-2” in the Preliminary Statement hereto. For any REMIC II-2
Interest, the Class of Certificates or Underlying Interest set forth on the
same
row in the table under “REMIC II-2” in the Preliminary Statement hereto. For any
REMIC II-3 Interest, the Class of Certificates or Underlying Interest set forth
on the same row in the table under “REMIC II-3” in the Preliminary Statement
hereto. For any REMIC II-4 Interest, the Class of Certificates or Underlying
Interest set forth on the same row in the table under “REMIC II-4” in the
Preliminary Statement hereto. For any REMIC II-5 Interest, the Class of
Certificates or Underlying Interest set forth on the same row in the table
under
“REMIC II-5” in the Preliminary Statement hereto. For any REMIC II-6 Interest,
the Class of Certificates or Underlying Interest set forth on the same row
in
the table under “REMIC II-6” in the Preliminary Statement hereto. For any REMIC
II-7 Interest, the Class of Certificates or Underlying Interest set forth on
the
same row in the table under “REMIC II-7” in the Preliminary Statement hereto.
For any REMIC II-8 Interest, the Class of Certificates or Underlying Interest
set forth on the same row in the table under “REMIC II-8” in the Preliminary
Statement hereto. For any REMIC II-9 Interest, the Class of Certificates or
Underlying Interest set forth on the same row in the table under “REMIC II-9” in
the Preliminary Statement hereto. For any REMIC II-10 Interest, the Class of
Certificates or Underlying Interest set forth on the same row in the table
under
“REMIC II-10” in the Preliminary Statement hereto. For any REMIC II-11 Interest,
the Class of Certificates or Underlying Interest set forth on the same row
in
the table under “REMIC II-11” in the Preliminary Statement hereto.
-95-
Related
Exchange or Exchangeable Classes:
As set
forth in the Preliminary Statement.
Related
Mortgage Pool:
Not
applicable.
Related
REMIC I-2 Interest:
For any
Related Certificates listed in the table under “REMIC I-2” in the Preliminary
Statement, the REMIC I-2 Interest set forth on the same row in the table under
“REMIC I-2” in the Preliminary Statement hereto.
Related
REMIC II-2 Interest:
For any
Related Certificates listed in the table under “REMIC II-2” in the Preliminary
Statement, the REMIC II-2 Interest set forth on the same row in the table under
“REMIC II-2” in the Preliminary Statement hereto.
Related
Senior Certificates:
Not
applicable.
Related
Underlying REMIC Certificates:
As set
forth in the Preliminary Statement.
Relevant
Servicing Criteria:
The
Servicing Criteria applicable to each party, as set forth on Exhibit R attached
hereto. Multiple parties can have responsibility for the same Relevant Servicing
Criteria. With respect to a Servicing Function Participant engaged by the Master
Servicer, the Trustee, the Custodian, the Paying Agent or each Servicer, the
term “Relevant Servicing Criteria” may refer to a portion of the Relevant
Servicing Criteria applicable to such parties.
Relief
Act:
The
Servicemembers Civil Relief Act, as amended, and any similar state or local
law
or regulation.
Relief
Act Reduction:
With
respect to any Mortgage Loan as to which there has been a reduction in the
amount of interest collectible thereon as a result of application of the Relief
Act, any amount by which interest collectible on such Mortgage Loan for the
Due
Date in the related Collection Period is less than interest accrued thereon
for
the applicable one-month period at the Mortgage Rate without giving effect
to
such reduction.
-96-
REMIC:
Each of the SWAP REMIC, REMIC I-1, REMIC I-2, REMIC II-AX, REMIC II-1, REMIC
II-2, REMIC II-3, REMIC II-4, REMIC II-5, REMIC II-6, REMIC II-7, REMIC II-8,
REMIC II-9, REMIC II-10 and REMIC II-11, as described in the Preliminary
Statement hereto.
REMIC
I-1:
As
described in the Preliminary Statement.
REMIC
I-1 Interests:
Any
one
of the classes of REMIC I-1 Interests as described in the Preliminary Statement
hereto.
REMIC
I-1 Marker Classes: Any of the REMIC I-1 Regular Interests other than the
Class LTI1-X Interest and other than the Class LTI1-IO Interest.
REMIC
I-1 Regular Interests:
Each
of
the REMIC I-1 Interests other than the Class LTI1-R Interest.
REMIC
I-2:
As
described in the Preliminary Statement.
REMIC
I-2 Interests:
Any
one
of the classes of REMIC I-2 Interests as described in the Preliminary Statement
hereto.
REMIC
I-2 Regular Interest: Any of the REMIC I-2 Interests other than the Residual
I Interest. Alternatively, any of the REMIC regular interests represented by
(i)
the rights associated with any Class of Group I Certificates other than the
rights to payments in respect of Excess Interest (and disregarding any
obligation to make payments in respect of Class I-I Shortfalls), (ii) the
Uncertificated Class X-I Interest and (iii) the Class LTI2-IO
Interest.
REMIC
II-AX:
As
described in the Preliminary Statement.
REMIC
II-AX Interests:
Any
one
of the Classes of REMIC II-AX Interests described in the Preliminary Statement
hereto.
REMIC
II-AX Regular Interests:
Any
of
the REMIC II-AX Interests other than the Class LTIIAX-R Interest.
REMIC
II-1:
As
described in the Preliminary Statement.
REMIC
II-1 Interests:
Any
one
of the classes of REMIC II-1 Interests as described in the Preliminary Statement
hereto.
REMIC
II-1 Regular Interests:
Each
of
the REMIC II-1 Interests other than the Class LTII1-R Interest.
REMIC
II-1 Subordinated Balance Ratio:
As of
any Distribution Date, the ratio among the uncertificated principal balances
of
each of the REMIC II-1II Marker Classes ending with the designation “A” that is
equal to the ratio among, with respect to each such REMIC II-1II Marker Class,
the excess of (x) the aggregate Scheduled Principal Balance of the Mortgage
Loans in the related Mortgage Pool over (y) the aggregate Class Principal
Amounts of the Classes of Related Senior Certificates as set forth in the
Preliminary Statement under the table entitled “REMIC II-1” (after giving effect
to distributions on such Distribution Date).
-97-
REMIC
II-1I Marker Classes:
Any of
the REMIC II-1 Regular Interests other than (i) the REMIC II-1II Marker Classes,
(ii) the Class LTII1-XI Interest, (iii) the Class LTII1-XII Interest, (iv)
the
Class LTII1-3AX Interest and (v) the Class LTII1-4AX Interest.
REMIC
II-1II Marker Classes:
Any of
the Class LTII1-IIIA, Class LTII1-IIIB, Class LTII1-IVA and Class LTII1-IVB
Interests.
REMIC
II-2:
As
described in the Preliminary Statement.
REMIC
II-2 Interests:
Any
one
of the classes of REMIC II-2 Interests as described in the Preliminary Statement
hereto.
REMIC
II-2 Regular Interests:
Each
of
the REMIC II-2 Interests other than the Class LTII2-R Interest.
REMIC
II-3:
As
described in the Preliminary Statement.
REMIC
II-3 Interests:
Any
one
of the classes of REMIC II-3 Interests as described in the Preliminary Statement
hereto.
REMIC
II-3 Regular Interests:
Each
of
the REMIC II-3 Interests other than the Class LTII3-R Interest.
REMIC
II-4:
As
described in the Preliminary Statement.
REMIC
II-4 Interests:
Any
one
of the classes of REMIC II-4 Interests as described in the Preliminary Statement
hereto.
REMIC
II-4 Regular Interests:
Each
of
the REMIC II-4 Interests other than the Class LTII4-R Interest.
REMIC
II-5:
As
described in the Preliminary Statement.
REMIC
II-5 Interests:
Any
one
of the classes of REMIC II-5 Interests as described in the Preliminary Statement
hereto.
REMIC
II-5 Regular Interests:
Each
of
the REMIC II-5 Interests other than the Class LTII5-R Interest.
REMIC
II-6:
As
described in the Preliminary Statement.
REMIC
II-6 Interests:
Any
one
of the classes of REMIC II-6 Interests as described in the Preliminary Statement
hereto.
REMIC
II-6 Regular Interests:
Each
of
the REMIC II-6 Interests other than the Class LTII6-R Interest.
-98-
REMIC
II-7:
As
described in the Preliminary Statement.
REMIC
II-7 Interests:
Any
one
of the classes of REMIC II-7 Interests as described in the Preliminary Statement
hereto.
REMIC
II-7 Regular Interests:
Each
of
the REMIC II-7 Interests other than the Class LTII7-R Interest.
REMIC
II-8:
As
described in the Preliminary Statement.
REMIC
II-8 Interests:
Any
one
of the classes of REMIC II-8 Interests as described in the Preliminary Statement
hereto.
REMIC
II-8 Regular Interests:
Each
of
the REMIC II-8 Interests other than the Class LTII8-R Interest.
REMIC
II-9:
As
described in the Preliminary Statement.
REMIC
II-9 Interests:
Any
one
of the classes of REMIC II-9 Interests as described in the Preliminary Statement
hereto.
REMIC
II-9 Regular Interests:
Each
of
the REMIC II-9 Interests other than the Class LTII9-R Interest.
REMIC
II-10:
As
described in the Preliminary Statement.
REMIC
II-10 Interests:
Any
one
of the classes of REMIC II-10 Interests as described in the Preliminary
Statement hereto.
REMIC
II-10 Regular Interests:
Each
of
the REMIC II-10 Interests other than the Class LTII10-R Interest.
REMIC
II-11:
As
described in the Preliminary Statement.
REMIC
II-11 Interests:
Any
one
of the classes of REMIC II-11 Interests as described in the Preliminary
Statement hereto.
REMIC
II-11 Regular Interests:
Each
of
the REMIC II-11 Interests other than the Residual II Interest.
REMIC
Pass-Through Rate: For any Distribution Date, (i) for any Group I
Certificate and its Related REMIC I-2 Interest, the Pool 1-2 Net Rate for such
Distribution Date (as adjusted, in the case of any Class of Certificates or
REMIC I-2 Interest that accrues interest on the basis of a 360-day year
consisting of twelve 30-day months, to reflect accruals on such basis); (ii)
for
any Pool 3 Senior Certificate (other than the Class 3-AX Certificate) and its
Related REMIC II-2 Interest, the Pool 3 Senior REMIC Cap for such Distribution
Date (as adjusted, in the case of any Class of Certificates or REMIC II-2
Interest that accrues interest on the basis of a 360-day year consisting of
twelve 30-day months, to reflect accruals on such basis); (iii) for any Pool
4
Senior Certificate (other than the Class 4-AX Certificate) and its Related
REMIC
II-2 Interest, the Pool 4 Senior REMIC Cap for such Distribution Date (as
adjusted, in the case of any Class of Certificates or REMIC II-2 Interest that
accrues interest on the basis of a 360-day year consisting of twelve 30-day
months, to reflect accruals on such basis); and (iv) for any Group II
Subordinate Certificate and its Related REMIC II-2 Interest, the weighted
average of the Pool 3 Senior REMIC Cap and the Pool 4 Senior REMIC Cap for
such
Distribution Date weighted on the basis of Pool Subordinate Amounts for Pool
3
and Pool 4, respectively.
-99-
REMIC
Provisions:
The
provisions of the federal income tax law relating to real estate mortgage
investment conduits, which appear at sections 860A through 860G of Subchapter
M
of Chapter 1 of the Code, and related provisions, and regulations, including
proposed regulations and rulings, and administrative pronouncements promulgated
thereunder, as the foregoing may be in effect from time to time.
REMIC
Swap Rate:
For
each Distribution Date (and the related Accrual Period), a per annum rate equal
to the rate used to compute the monthly gross amount due to the Swap
Counterparty under the Swap Agreement for such Distribution Date (such rate,
as
described in the Prospectus, being the Rate of Payment set forth in Annex E
of
the Prospectus).
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 or otherwise
treated as having been acquired pursuant to the REMIC Provisions.
Replacement
Receipts:
Not
applicable.
Replacement
Receipts Account:
Not
applicable.
Reportable
Event:
As
defined in Section 6.20(e)(i).
Reporting
Servicer:
As
defined in Section 6.20(d)(i).
Repurchase
Price:
Not
applicable.
Required
Reserve Fund Amount:
Not
applicable.
Residual
Certificates:
The
Class R Certificates.
Residual
I Interest:
An
interest in REMIC I-2 that is entitled to all distributions on the Class R
Certificate relating to Pool 1 and Pool 2 other than distributions in respect
of
(i) the Class SW-R Interest and (ii) the Class LTI1-R Interest.
Residual
II Interest:
An
interest in REMIC II-11 that is entitled to all distributions on the Class
R
Certificate relating to Pool 3 and Pool 4 other than distributions in respect
of
(i) the Class LTIIAX-R Interest, (ii) the Class LTII1-R Interest, (ii) the
Class
LTII2-R Interest, (ii) the Class LTII3-R Interest, (ii) the Class LTII4-R
Interest, (ii) the Class LTII5-R Interest, (ii) the Class LTII6-R Interest,
(ii)
the Class LTII7-R Interest, (ii) the Class LTII8-R Interest, (ii) the Class
LTII9-R Interest and (iii) the Class LTII10-R Interest.
-100-
Responsible
Officer:
When
used with respect to the Trustee, any Vice President, Assistant Vice President,
the Secretary, any assistant secretary, or any officer, working in its Corporate
Trust Office and having direct responsibility for the administration of this
Agreement, and any other officer to whom a matter arising under this Agreement
may be referred.
Restricted
Certificate:
Any
Class P, Class X or Class R Certificate.
Restricted
Global Security:
As
defined in Section 3.01(c).
Rolling
Three Month Delinquency Rate:
Not
applicable.
Rules:
As
defined in Section 6.20(c).
S&P:
Standard & Poor’s Ratings Services, a division of The McGraw Hill Companies,
Inc., or any successor in interest.
S-X
Component:
The
portion of the Class X-I Certificates representing the right to distributions
to
the Class X-I Certificates from the Swap Agreement.
Scheduled
Notional Amount:
For
each Distribution Date and for the Swap Agreement, the amount set forth on
Schedule B.
Scheduled
Payment:
Each
scheduled payment of principal and interest (or of interest only, if applicable)
to be paid by the Mortgagor on a Mortgage Loan, as reduced (except where
otherwise specified herein) by the amount of any related Debt Service Reduction
or as a result of any related Deficient Valuation (in each case, excluding
all
amounts of principal and interest that were due on or before the Cut-off Date
whenever received) and, in the case of an REO Property, an amount equivalent
to
the Scheduled Payment that would have been due on the related Mortgage Loan
if
such Mortgage Loan had remained in existence.
Scheduled
Principal Balance:
With
respect to (i) any Mortgage Loan as of any Distribution Date, the principal
balance of such Mortgage Loan at the close of business on the Cut-off Date
after
giving effect to principal payments due on or before the Cut-off Date, whether
or not received, less an amount equal to principal payments due after the
Cut-off Date, and on or before the Due Date in the related Collection Period,
whether or not received from the Mortgagor or advanced by the applicable
Servicer or the Master Servicer, and all amounts received thereon which are
allocable to unscheduled principal payments (including Principal Prepayments,
Liquidation Proceeds, Insurance Proceeds and condemnation proceeds, in each
case
to the extent identified and applied prior to or during the related Prepayment
Period) and as increased by the amounts of any Negative Amortization with
respect to such Mortgage Loan after the Cut-off Date through the Due Date in
the
related Collection Period and (ii) any REO Property as of any Distribution
Date,
the Scheduled Principal Balance of the related Mortgage Loan on the Due Date
immediately preceding the date of acquisition of such REO Property by or on
behalf of the Trustee (reduced by any amount applied as a reduction of principal
on the Mortgage Loan). With respect to any Mortgage Loan and the Cut-off Date,
as specified in the Mortgage Loan Schedule. The Scheduled Principal Balance
of a
Liquidated Mortgage Loan shall be zero.
-101-
Security
Agreement:
With
respect to any Cooperative Loan, the agreement between the owner of the related
Cooperative Shares and the originator of the related Mortgage Note that defines
the terms of the security interest in such Cooperative Shares and the related
Proprietary Lease.
Seller:
Xxxxxx
Brothers Holdings Inc. or any successor in interest thereto.
Senior
Certificates:
The
Group I Senior Certificates and Group II Senior Certificates.
Senior
Enhancement Percentage:
Not
applicable.
Senior
Principal Distribution Amount:
Not
applicable.
Senior
Priority:
Not
applicable.
Senior
Proportionate Percentage:
For
Pool 1 with respect to any Distribution Date, a fraction, expressed as a
percentage, the numerator of which is the aggregate of the current Class
Principal Amounts of each class of the Pool 1 Senior Certificates for such
Distribution Date and the denominator of which is the aggregate of the current
Class Principal Amounts for the Group I Senior Certificates for such date.
For
Pool 1C with respect to any Distribution Date, a fraction, expressed as a
percentage, the numerator of which is the aggregate of the current Class
Principal Amounts of each class of the Pool 1C Senior Certificates for such
Distribution Date and the denominator of which is the aggregate of the current
Class Principal Amounts for the Group I Senior Certificates for such date.
For
Pool 2 with respect to any Distribution Date, a fraction, expressed as a
percentage, the numerator of which is the aggregate of the current Class
Principal Amounts of each class of the Pool 2 Senior Certificates for such
Distribution Date and the denominator of which is the aggregate of the current
Class Principal Amounts for the Group I Senior Certificates for such date.
For
Pool 3 with respect to any Distribution Date, a fraction, expressed as a
percentage, the numerator of which is the aggregate of the current Class
Principal Amounts of each class of the Pool 3 Senior Certificates for such
Distribution Date and the denominator of which is the aggregate of the current
Class Principal Amounts for the Group II Senior Certificates for such date.
For
Pool 4 with respect to any Distribution Date, a fraction, expressed as a
percentage, the numerator of which is the aggregate of the current Class
Principal Amounts of each class of the Pool 4 Senior Certificates for such
Distribution Date and the denominator of which is the aggregate of the current
Class Principal Amounts for the Group II Senior Certificates for such
date.
Senior
Target Amount:
Not
applicable.
Servicer:
Each
Servicer that has entered into one of the Servicing Agreements attached as
Exhibit E hereto, or any successor in interest. Initially, the Servicers are
GMACM, GreenPoint, Aurora, IndyMac Bank, F.S.B., Bank of America, National
Association, Residential Funding Company, LLC, SunTrust, Countrywide Home Loans
Servicing LP and American Home Mortgage Servicing, Inc.
Service(s)(ing):
In
accordance with Regulation AB, the act of managing or collecting payments on
the
Mortgage Loans or any other assets of the Trust Fund by an entity that meets
the
definition of “servicer” set forth in Item 1101 of Regulation AB. For
clarification purposes, any uncapitalized occurrence of this term shall have
the
meaning commonly understood by participants in the residential mortgage-backed
securitization market.
-102-
Servicer
Remittance Date:
The day
in each calendar month on which the applicable Servicer is required to remit
payments to the Collection Account, as specified in the related Servicing
Agreement, which (other than for GMACM, GreenPoint or SunTrust) is the 18th
day
of each month (or if such 18th day is not a Business Day, the first Business
Day
immediately following) and for GMACM, GreenPoint or SunTrust is the 10th day
of
each calendar month (or, if such 10th day is not a Business Day, the first
preceding or next succeeding Business Day, as applicable).
Servicing
Advances:
Expenditures incurred by a Servicer in connection with the liquidation or
foreclosure of a Mortgage Loan which are eligible for reimbursement under the
applicable Servicing Agreement.
Servicing
Agreement:
Any of
the servicing agreements between a Servicer and the Seller, dated as of July
1,
2007, and attached hereto in Exhibit E, and any other servicing agreement
entered into between a successor servicer and the Seller or the Trustee pursuant
to the terms hereof.
Servicing
Criteria:
The
“servicing criteria” set forth in Item 1122(d) of Regulation AB, as such may be
amended from time to time.
Servicing
Fee:
A
monthly fee retained out of collections on the Mortgage Loans by the related
Servicer (other than GMACM, GreenPoint or SunTrust) as specified in the
applicable Servicing Agreement. With respect to GreenPoint, and as to any
Distribution Date, a monthly fee as specified in the applicable Servicing
Agreement paid out of the General Servicing Fee calculated at the General
Servicing Fee Rate.
Servicing
Fee Rate:
0.375%
per annum (or 0.425% per annum with respect to Mortgage Loans serviced by
Residential Funding Company, LLC).
Servicing
Function Participant:
Any
Subservicer, Subcontractor or any other Person, other than each Servicer, the
Custodian, the Master Servicer, the Paying Agent and the Trustee, that is
participating in the servicing function within the meaning of Regulation AB,
unless such Person’s activities relate only to 5% or less of the Mortgage
Loans.
Similar
Law:
As
defined in Section 3.03(d).
Sponsor:
Xxxxxx
Brothers Holdings Inc. and any successor in interest thereto.
Stack
I REMICs:
The
SWAP REMIC, REMIC I-1 and REMIC I-2.
Stack
II REMICs:
REMIC
II-AX, REMIC
II-1, REMIC II-2, REMIC II-3, REMIC II-4, REMIC II-5, REMIC II-6, REMIC II-7,
REMIC II-8, REMIC II-9, REMIC II-10 and REMIC II-11.
Startup
Day:
The day
designated as such pursuant to Section 10.01(b) hereof.
-103-
Stepdown
Date:
Not
applicable.
Subcontractor:
Any
third-party or Affiliated vendor, subcontractor or other Person utilized by
a
Servicer, a Custodian, the Master Servicer, a Subservicer or the Trustee that
is
not responsible for the overall servicing (as “servicing” is commonly understood
by participants in the mortgage-backed securities market) of the Mortgage Loans
but performs one or more discrete functions identified in Item 1122(d) of
Regulation AB with respect to the Mortgage Loans under direction and authority
of such Servicer, Custodian, Master Servicer, Subservicer or
Trustee.
Subordinate
Certificates:
Collectively, the Group I Subordinate Certificates and Group II Subordinate
Certificates.
Subordinate
Maximum Interest Rate:
Not
applicable.
Subordinate
Net Funds Cap:
The
Group I Subordinate Net Funds Cap and Group II Subordinate Net Funds
Cap.
Subsequent
Recovery:
Any
amount recovered by any Servicer or the Master Servicer with respect to a
Liquidated Mortgage Loan with respect to which a Realized Loss was incurred
after the liquidation or disposition of such Mortgage Loan.
Subservicer:
Any
Person that (i) is considered to be a Servicing Function Participant, (ii)
services Mortgage Loans on behalf of any Servicer or an Additional Servicer,
and
(iii) is responsible for the performance (whether directly or through
subservicers or Subcontractors) of material servicing functions required to
be
performed by the Servicer or Master Servicer under this Agreement, the Servicing
Agreements, the Custodial Agreements or other Servicing agreements entered
into
with respect to some or all of the Mortgage Loans, that are identified in Item
1122(d) of Regulation AB.
Substitution
Amount:
The
amount, if any, by which the Scheduled Principal Balance of a Deleted Mortgage
Loan exceeds the Scheduled Principal Balance of the related Qualifying
Substitute Mortgage Loan, or aggregate Scheduled Principal Balance, if
applicable, plus unpaid interest thereon, and any related unpaid Advances or
Servicing Advances or unpaid Servicing Fees (or, with respect to the Mortgage
Loans serviced by GreenPoint, the General Servicing Fee), plus any costs and
damages incurred by the Trust Fund associated with violation of any federal,
state or local predatory or abusive lending laws.
SunTrust:
SunTrust Mortgage, Inc. or
its
successors in interest.
Supplemental
Interest Trust:
The
corpus of a trust created pursuant to Section 5.07 of this Agreement and
designated as the “Supplemental Interest Trust,” consisting of the Swap
Agreement, the Supplemental Interest Trust Account and the right to receive
the
X-I Component Distributable Amount as provided in Section 5.07.
Supplemental
Interest Trust Account:
The
account created pursuant to Section 5.07 of this Agreement.
-104-
Supplemental
Interest Trust Amount:
With
respect to any Swap Payment Date, the sum of any Net Swap Payment and any Swap
Termination Payment deposited into the Supplemental Interest Trust
Account.
Swap
Agreement:
The
interest rate swap agreement entered into by the Supplemental Interest Trust,
which agreement provides for, among other things, a Net Swap Payment to be
paid
pursuant to the conditions provided therein, together with any schedules,
confirmations or other agreements relating thereto, attached hereto as Exhibit
N.
Swap
Allocation Payment Amount: Beginning with the Distribution Date in September
2007, the Swap Allocation Payment Amount will be equal to the product of (i)
the
Swap Allocation Percentage and (ii) Net Swap Payment or Swap Termination Payment
for such Date. After the Distribution Date in July 2012, the Swap Allocation
Payment Amount will be equal to zero.
Swap
Allocation Percentage: For any of Pool 1, Pool 1C or Pool 2, a fraction, the
numerator of which is the sum of (a) the aggregate Class Principal Amount of
the
Group I Senior Certificates related to such pools and (b) the sum of the
Apportioned Principal Balances for the Subordinate Certificates related to
such
pools, and the denominator of which is the aggregate Class Principal Amount
of
the Group I Senior Certificates and the Group I Subordinate
Certificates.
Swap
Counterparty:
The
counterparty to the Supplemental Interest Trust under the Swap Agreement, and
any successor in interest or assigns. Initially, the Swap Counterparty shall
be
HSBC Bank USA, National Association.
Swap
Counterparty Trigger Event:
A Swap
Counterparty Trigger Event shall have occurred if any of (i) a Swap Default
with
respect to which the Swap Counterparty is a Defaulting Party, (ii) a Termination
Event with respect to which the Swap Counterparty is the sole Affected Party
or
(iii) an Additional Termination Event with respect to which the Swap
Counterparty is the sole Affected Party has occurred.
Swap
Default:
Any of
the circumstances constituting an “Event of Default” under the Swap
Agreement.
Swap
Early Termination:
The
occurrence of an early termination date under the Swap Agreement.
Swap
LIBOR:
With
respect to any Distribution Date (and the related Accrual Period), the product
of (i) the Floating Rate Option (as defined under “Floating Amounts” in the Swap
Agreement) for the related Swap Payment Date and (ii) two, as calculated by
the
Swap Counterparty and furnished to the Trustee.
Swap
Payment Date:
For so
long as the Swap Agreement is in effect or any amounts remain unpaid thereunder,
the Business Day immediately preceding each Distribution Date.
SWAP
REMIC:
As
described in the Preliminary Statement.
-105-
SWAP
REMIC Interests:
Any one
of the classes of SWAP REMIC Interests described in the Preliminary Statement
hereto.
SWAP
REMIC Regular Interests:
Any of
the SWAP REMIC Interests other than the Class SW-R Interest.
Swap
Termination Payment:
Upon
the designation of an “Early Termination Date” as defined in the Swap Agreement,
the payment required to be made by the Supplemental Interest Trust to the Swap
Counterparty, or by the Swap Counterparty to the Supplemental Interest Trust,
as
applicable, pursuant to the terms of the Swap Agreement, and any unpaid amounts
due on previous Swap Payment Dates and accrued interest thereon as provided
in
the Swap Agreement, as calculated by the Swap Counterparty and furnished to
the
Trustee.
Target
Amount:
Not
applicable.
Targeted
Overcollateralization Amount:
Not
applicable.
Tax
Matters Person:
Not
applicable.
Telerate
Page 3750:
The
display currently so designated as “Page 3750” on the Moneyline Telerate Service
(or such other page selected by the Trustee as may replace Page 3750 on that
service for the purpose of displaying daily comparable rates on
prices).
Termination
Event:
As
defined in the Swap Agreement.
Termination
Receipts:
Not
applicable.
Termination
Receipts Account:
Not
applicable.
Title
Insurance Policy:
A title
insurance policy maintained with respect to a Mortgage Loan.
Total
Distribution Amount:
With
respect to any Distribution Date, the sum of (i) the Interest Remittance Amount
for all five Mortgage Pools for such date; (ii) the Principal Remittance Amount
for all five Mortgage Pools for such date; and (iii) the Prepayment
Premiums.
Transfer
Agreements:
As
defined in the Mortgage Loan Sale Agreement.
Transferors:
American Home Mortgage Corp., IndyMac Bank, F.S.B., Bank of America, National
Association, Residential Funding Company, LLC, Countrywide Home Loans, Inc.,
Xxxxxx Brothers Bank, FSB, Quicken Loans, Inc., SunTrust and
GreenPoint.
Trigger
Event:
With
respect to any Distribution Date, means that either a Delinquency Event or
a
Cumulative Loss Trigger Event is in effect for such Distribution
Date.
Trust
Fund:
The
corpus of the Xxxxxx XS Trust, Series 2007-15N created pursuant to this
Agreement consisting of the Mortgage Loans, the assignment of the Depositor’s
rights under the Transfer Agreements, the Mortgage Loan Sale Agreement and
the
Servicing Agreements, such amounts as shall from time to time be held in the
Pool 1-2 Basis Risk Reserve Fund, Pool 3-4 Basis Risk Reserve Fund, Collection
Account, Certificate Account, any Custodial Account and any Escrow Account,
the
Insurance Policies, any REO Property and the other items referred to in, and
conveyed to the Trustee under, Section 2.01(a), including without limitation,
for the benefit of the Guaranteed Certificates only, the Certificate Insurance
Policy and the Policy Payments Account. For the avoidance of doubt, the assets
of the Trust Fund shall not include the Swap Agreement, the Interest Rate Cap
Agreement and the Interest Rate Cap Account. For the avoidance of doubt, the
assets of the Trust Fund shall not include the Deferred Interest Cap Agreements
and the Deferred Interest Cap Accounts, which are assets of the Grantor Trusts
established pursuant to Section 5.02(m). With respect to Exchange Act reporting
requirements, the Trust Fund shall be deemed to include each Grantor Trust
established pursuant to Section 5.02(m).
-106-
Trust
REMIC:
Any
REMIC created hereunder.
Trustee:
U.S.
Bank National Association, a national banking association, not in its individual
capacity, but solely in its capacity as trustee or as grantor trustee, as
applicable, for the benefit of the related Certificateholders and the
Certificate Insurer under this Agreement, and any successor thereto, and any
corporation or national banking association resulting from or surviving any
consolidation or merger to which it or its successors may be a party and any
successor trustee as may from time to time be serving as successor trustee
hereunder.
UCC
or
Uniform Commercial Code:
The
Uniform Commercial Code as in effect in any applicable jurisdiction from time
to
time.
Uncertificated
Class X-I Interest:
An
uncertificated regular interest in REMIC I-2 with an initial principal balance
equal to the excess of (i) the aggregate Pool Balance for Pool 1 and Pool 2
as
of the Cut-off Date over (ii) the aggregate initial principal amounts of the
Group II Certificates and bearing interest on a each Distribution Date in an
amount equal to the X-I Component Current Interest for such Distribution Date;
provided, however, that such interest shall have no obligation or right to
make
or receive any payments treated as paid or received by the Class X-I
Certificates pursuant to interest rate cap agreements or notional principal
contracts under Section 10.01 and shall have no rights to receive payments
in
respect of Class X-I Shortfalls from the Master Servicer as described in Section
10.01.
Uncertificated
Class X-II Interest:
An
uncertificated regular interest in REMIC II-11 with an initial principal balance
equal to the excess of (i) the aggregate Pool Balance for Pool 3 and Pool 4
as
of the Cut-off Date over (ii) the aggregate initial principal amounts of the
Group II Certificates and bearing interest on a each Distribution Date in an
amount equal to the Class X-II Current Interest for such Distribution Date;
provided, however, that such interest shall have no obligation or right to
make
or receive any payments treated as paid or received by the Class X-II
Certificates pursuant to interest rate cap agreements or notional principal
contracts under Section 10.01 and shall have no rights to receive payments
in
respect of Class X-II Shortfalls from the Master Servicer as described in
Section 10.01.
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Underlying
4-A1 REMIC Certificates:
Each of
the Underlying 4A1 Interest, Underlying 4A1IA Interest, Underlying 4A1IB
Interest, Underlying 4A1IC Interest, Underlying 4A1ID Interest, Underlying
4A1IE
Interest, Underlying 4A1IF Interest, Underlying 4A1IG Interest and Underlying
4A1IH Interest
Underlying
4A1 Interest:
An
interest in the Class 4-A1 Grantor Trust representing an indirect beneficial
interest in (i) the Class LTII11-4A1 Interest, (ii) rights with respect to
Excess Interest, (iii) obligations with respect to Class I-II Shortfalls and
(iv) the rights and obligations with respect to the Deferred Interest Cap
Agreement and Deferred Interest Cap Account relating to the Class 4-A1
Underlying Interest that are attributable to the Class LTII11-4A1
Interest.
Underlying
4A1IA Interest:
An
interest in the Class 4-A1 Grantor Trust representing an indirect beneficial
interest in (i) the Class LTII11-4A1IA Interest, (ii) rights with respect to
Excess Interest, (iii) obligations with respect to Class I-II Shortfalls, (iv)
the rights and obligations with respect to the Deferred Interest Cap Agreement
and Deferred Interest Cap Account relating to the Class 4-A1 Underlying Interest
that are attributable to the Class LTII11-4A1IA Interest and (v) rights with
respect to Class 4-A1IA Shortfalls described in Section 10.01(p).
Underlying
4A1IB Interest:
An
interest in the Class 4-A1 Grantor Trust representing an indirect beneficial
interest in (i) the Class LTII11-4A1IB Interest, (ii) rights with respect to
Excess Interest, (iii) obligations with respect to Class I-II Shortfalls, (iv)
the rights and obligations with respect to the Deferred Interest Cap Agreement
and Deferred Interest Cap Account relating to the Class 4-A1 Underlying Interest
that are attributable to the Class LTII11-4A1IB Interest and (v) rights with
respect to Class 4-A1IB Shortfalls described in Section 10.01(p).
Underlying
4A1IC Interest:
An
interest in the Class 4-A1 Grantor Trust representing an indirect beneficial
interest in (i) the Class LTII11-4A1IC Interest, (ii) rights with respect to
Excess Interest, (iii) obligations with respect to Class I-II Shortfalls, (iv)
the rights and obligations with respect to the Deferred Interest Cap Agreement
and Deferred Interest Cap Account relating to the Class 4-A1 Underlying Interest
that are attributable to the Class LTII11-4A1IC Interest and (v) rights with
respect to Class 4-A1IC Shortfalls described in Section 10.01(p).
Underlying
4A1ID Interest:
An
interest in the Class 4-A1 Grantor Trust representing an indirect beneficial
interest in (i) the Class LTII11-4A1ID Interest, (ii) rights with respect to
Excess Interest, (iii) obligations with respect to Class I-II Shortfalls, (iv)
the rights and obligations with respect to the Deferred Interest Cap Agreement
and Deferred Interest Cap Account relating to the Class 4-A1 Underlying Interest
that are attributable to the Class LTII11-4A1ID Interest and (v) rights with
respect to Class 4-A1ID Shortfalls described in Section 10.01(p).
Underlying
4A1IE Interest:
An
interest in the Class 4-A1 Grantor Trust representing an indirect beneficial
interest in (i) the Class LTII11-4A1IE Interest, (ii) rights with respect to
Excess Interest, (iii) obligations with respect to Class I-II Shortfalls, (iv)
the rights and obligations with respect to the Deferred Interest Cap Agreement
and Deferred Interest Cap Account relating to the Class 4-A1 Underlying Interest
that are attributable to the Class LTII11-4A1IE Interest and (v) rights with
respect to Class 4-A1IE Shortfalls described in Section 10.01(p).
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Underlying
4A1IF Interest:
An
interest in the Class 4-A1 Grantor Trust representing an indirect beneficial
interest in (i) the Class LTII11-4A1IF Interest, (ii) rights with respect to
Excess Interest, (iii) obligations with respect to Class I-II Shortfalls, (iv)
the rights and obligations with respect to the Deferred Interest Cap Agreement
and Deferred Interest Cap Account relating to the Class 4-A1 Underlying Interest
that are attributable to the Class LTII11-4A1IF Interest and (v) rights with
respect to Class 4-A1IF Shortfalls described in Section 10.01(p).
Underlying
4A1IG Interest:
An
interest in the Class 4-A1 Grantor Trust representing an indirect beneficial
interest in (i) the Class LTII11-4A1IG Interest, (ii) rights with respect to
Excess Interest, (iii) obligations with respect to Class I-II Shortfalls, (iv)
the rights and obligations with respect to the Deferred Interest Cap Agreement
and Deferred Interest Cap Account relating to the Class 4-A1 Underlying Interest
that are attributable to the Class LTII11-4A1IG Interest and (v) rights with
respect to Class 4-A1IG Shortfalls described in Section 10.01(p).
Underlying
4A1IH Interest:
An
interest in the Class 4-A1 Grantor Trust representing an indirect beneficial
interest in (i) the Class LTII11-4A1IH Interest, (ii) rights with respect to
Excess Interest, (iii) obligations with respect to Class I-II Shortfalls, (iv)
the rights and obligations with respect to the Deferred Interest Cap Agreement
and Deferred Interest Cap Account relating to the Class 4-A1 Underlying Interest
that are attributable to the Class LTII11-4A1IH Interest and (v) rights with
respect to Class 4-A1IH Shortfalls described in Section 10.01(p).
Underlying
Interests:
With
respect to the Class 4-A1 Certificates, the Class 4-A1 Underlying Interest.
With
respect to the Class 4-A2A Certificates, the Class 4-A2A Underlying Interest.
With respect to the Class 4-A2B Certificates, the Class 4-A2B Underlying
Interest. With respect to the Class 4-A3 Certificates, the Class 4-A3 Underlying
Interest.
Underlying
REMIC Certificates: Each of (i) the rights with respect to each following
Class of Certificates, issued hereunder in uncertificated form to the Exchange
Trustee (such rights determined for this purpose as if no Exchangeable
Certificates existed): Class 1-A2, Class 1C-A2, Class 2-A2, Class 1-A3, Class
1C-A3 and Class 2-A3 Certificates and (ii) each of the Underlying 4-A1 REMIC
Certificates.
Underwriter:
Xxxxxx
Brothers Inc.
Underwriter’s
Exemption:
Prohibited Transaction Exemption 2002-41, 67 Fed. Reg. 54487 (2002), as amended
(or any successor thereto), or any substantially similar administrative
exemption granted by the U.S. Department of Labor.
Unpaid
Basis Risk Shortfall:
With
respect to any Distribution Date and any Class of LIBOR Certificates, the
aggregate of all Basis Risk Shortfalls with respect to such Class remaining
unpaid from previous Distribution Dates, plus interest accrued thereon at the
applicable Certificate Interest Rate (calculated without giving effect to the
applicable Net Funds Cap but limited to a rate no greater than the applicable
Maximum Interest Rate).
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Upper
Tier REMIC:
Not
applicable.
Voting
Interests:
The
portion of the voting rights of all the Certificates that is allocated to any
Certificate for purposes of the voting provisions of this Agreement. At all
times during the term of this Agreement, 89% of all Voting Interests shall
be
allocated to the Offered Certificates (other than the Class 3-AX and Class
4-AX
Certificates), 2% of all Voting Interests shall be allocated to each Class
of
the Class 3-AX and Class 4-AX Certificates, 1% of all Voting Interests shall
be
allocated to each Class of the Class C-I, Class C-II, Class X-I, Class X-II,
Class AP-I, and Class R Certificates and 0.5% of all Voting Interests shall
be
allocated to each Class of the Class 3-AP and Class 4-AP Certificates; provided,
however, that on and after the date, if any, on which the Certificate Insurer
has paid a claim under the Certificate Insurance Policy in respect of any of
the
Guaranteed Certificates, the Certificate Insurer shall be entitled to exercise
all consent, voting and related rights of such Certificates. Voting Interests
shall be allocated among such Classes of Certificates (other than the Class
C-I,
Class C-II, Class X-I, Class X-II, Class AP-I, Class 3-AP and Class 4-AP
Certificates) in proportion to their Class Principal Amounts or Class Notional
Amounts (or, in the case of the Grantor Trust Certificates, the Class Principal
Amount of the related Underlying Interests) or Class Notional Amounts and among
the Certificates of each Class in proportion to their Percentage Interests.
Voting Interests allocated to a Class of Exchange Certificates shall be
proportionately allocated to the related Class or Classes of Exchangeable
Certificates on the basis of the related exchange proportions.
X-I
Component:
The
portion of the Class X-I Certificates representing the right to distributions
to
the Class X-I Certificates as described herein.
X-I
Component Account:
An
account established as part of the Trust Fund pursuant to Section 5.12 of this
Agreement but which is not an asset of any of the REMICs for the benefit of
the
X-I Component of the Class X-I Certificates and the Class C-I
Certificates.
X-I
Component Account Termination Date:
The
Distribution Date in March 2010.
X-I
Component Current Interest:
For any
Distribution Date, the interest accrued during the related Accrual Period on
the
X-I Component Notional Balance at the X-I Component Interest Rate.
X-I
Component Distributable Amount:
On any
Distribution Date, the excess of (i) the sum of (x) the excess of (1) the
aggregate Cut-off Date Balance for Mortgage Group I over (2) the aggregate
initial principal amounts of the Group I Certificates, (y) the aggregate X-I
Component Current Interest for such Distribution Date and all prior Distribution
Dates and (z) amounts treated as received by the Class X-I Certificates in
respect of Class I-I Shortfalls described in Section 10.01(n) over (ii) the
sum
of (w) the aggregate payments in respect of Excess Interest for the Group I
Certificates for such Distribution Date and all prior Distribution Dates (to
the
extent not derived from proceeds of the Swap Agreement or the Interest Rate
Cap
Agreement), (x) all prior distributions to the X-I Component of the Class X-I
Certificate under Section 5.02(h)(ix) hereof, (y) all payments treated as
distributed by REMIC I-2 to the Uncertificated Class X-I Interest then paid
to
the Swap Counterparty as described in Section 10.01(o) and (z) all payments
treated as paid by the Group I Certificates to the Class X-I Certificates in
respect of Class I-I Shortfalls then paid to the Swap Counterparty as described
in Section 10.01(o).
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X-I
Component Interest Rate:
For any
Distribution Date, the excess of (i) the weighted average of the interest rates
on the REMIC I-1 Regular Interests (other than the Class LTI1-IO Interest)
over
(ii) two times the weighted average of the interest rates on the REMIC I-1
Regular Interests (other than the Class LTI1-IO Interest) (treating for purposes
of this clause (ii) the interest rate on each of the REMIC I-1 Marker Classes
as
being capped at the interest rate of the Related REMIC I-2 Interest of the
Corresponding Classes of Certificates (as adjusted, if necessary, to reflect
accruals on an “actual/360” basis) and treating the interest rate on the Class
LTI1-X Interest as capped at zero). The average described in the preceding
sentence shall be weighted on the basis of the respective principal balances
of
the REMIC I-1 Regular Interests immediately prior to such Distribution
Date.
X-I
Component Notional Balance:
With
respect to any Distribution Date (and the related Accrual Period), the aggregate
principal balance of the REMIC I-1 Regular Interests (other than the Class
LTI1-IO Interest) immediately prior to such Distribution Date.
Section
1.02. Calculations
Respecting Mortgage Loans.
Calculations
required to be made pursuant to this Agreement with respect to any Mortgage
Loan
in the Trust Fund shall be made based upon current information as to the terms
of the Mortgage Loans and reports of payments received from the Mortgagor on
such Mortgage Loans and payments to be made to the Trustee as supplied to the
Trustee by the Master Servicer. The Trustee shall not be required to recompute,
verify or recalculate the information supplied to it by the Master Servicer
or
any Servicer.
Section
1.03. Calculations
Respecting Accrued Interest.
Accrued
interest, if any, on any LIBOR Certificate shall be calculated based upon a
360-day year and the actual number of days elapsed in each Accrual Period.
Accrued interest, if any, on the Class 3-AX or Class 4-AX Certificate shall
be
calculated based upon a 360-day year consisting of twelve 30-day
months.
Section
1.04. Rights
of the NIMS Insurer.
Each
of
the rights of any NIMS Insurer set forth in this Agreement shall exist so long
as (i) the NIMS Insurer has undertaken to guarantee certain payments of NIM
Securities issued pursuant to the Indenture and (ii) the NIM Securities issued
pursuant to the Indenture remain outstanding or the NIMS Insurer is owed amounts
in respect of its guarantee of payment on such notes; provided, however, the
NIMS Insurer shall not have any rights hereunder (except pursuant to Section
11.03 and any rights to indemnification hereunder in the case of clause (ii)
below) so long as (i) the NIMS Insurer has not undertaken to guarantee certain
payments of notes issued pursuant to the Indenture or (ii) any default has
occurred and is continuing under the insurance policy issued by the NIMS Insurer
with respect to such notes.
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ARTICLE
II.
DECLARATION
OF TRUST;
ISSUANCE
OF CERTIFICATES
Section
2.01. Creation
and Declaration of Trust Fund; Conveyance of Mortgage Loans.
(a) Concurrently
with the execution and delivery of this Agreement, the Depositor does hereby
transfer, assign, set over, deposit with and otherwise convey to the Trustee,
without recourse, subject to Sections 2.02, 2.04, 2.05 and 2.06, in trust,
all
the right, title and interest of the Depositor in and to the Mortgage Loans.
Such conveyance includes, without limitation, the right to all payments of
principal and interest received on or with respect to the Mortgage Loans on
and
after the Cut-off Date (other than payments of principal and interest due on
or
before such date), and all such payments due after such date but received prior
to such date and intended by the related Mortgagors to be applied after such
date together with all of the Depositor’s right, title and interest in and to
the Collection Account, the Interest Rate Cap Account, the Deferred Interest
Cap
Accounts, the Certificate Account and all amounts from time to time credited
to
and the proceeds of the Certificate Account, any Custodial Accounts, any Escrow
Account established pursuant to Section 9.06, the Pool 1-2 Basis Risk Reserve
Fund and the Pool 3-4 Basis Risk Reserve Fund established pursuant to Section
5.06 and all amounts from time to time credited to and the proceeds of each
such
account, the Class X-II Account and X-I Component Account established pursuant
to Section 5.12 and all amounts from time to time credited to and the proceeds
of each such account, any REO Property and the proceeds thereof, the Depositor’s
rights under any Insurance Policies related to the Mortgage Loans, the
Depositor’s security interest in any collateral pledged to secure the Mortgage
Loans, including the Mortgaged Properties, and any proceeds of the foregoing,
to
have and to hold, in trust; and the Trustee declares that, subject to the review
provided for in Section 2.02, it has received and shall hold the Trust Fund,
as
trustee, and the Grantor Trusts established pursuant to Section 5.02(n), as
grantor trustee, in trust, for the benefit and use of the Holders of the related
Certificates (except that the Certificate Insurance Policy and the Policy
Payments Account shall be held in trust for the benefit of the Holders of the
Guaranteed Certificates) and for the purposes and subject to the terms and
conditions set forth in this Agreement, and, concurrently with such receipt,
has
caused to be executed, authenticated and delivered to or upon the order of
the
Depositor, in exchange for the Trust Fund and Grantor Trusts established
pursuant to Section 5.02(n), Certificates in the authorized denominations
evidencing the entire ownership of the Trust Fund. or the Grantor Trusts
established pursuant to Section 5.02(m), as applicable.
Concurrently
with the execution of this Agreement, the Swap Agreement shall be delivered to
the Trustee. In connection therewith, the Depositor hereby directs the Trustee
(solely in its capacity as such) and the Trustee is hereby authorized to execute
and deliver the Swap Agreement (on behalf of the Supplemental Interest Trust)
for the benefit of, the Certificateholders. The Seller, the Master Servicer,
the
Depositor, the Servicers and the Certificateholders (by their acceptance of
such
Certificates) acknowledge and agree that the Trustee is executing and delivering
the Swap Agreement solely in its capacity as Trustee of the Supplemental
Interest Trust and the Trust Fund not in its individual capacity. The Trustee
shall have no duty or responsibility to enter into any other interest rate
swap
agreement upon the expiration or termination of the Swap Agreement.
-112-
Concurrently
with the execution and delivery of this Agreement, the Depositor does hereby
assign to the Trustee all of its rights and interest under the Mortgage Loan
Sale Agreement, including all rights of the Seller under the Servicing
Agreements and each related Transfer Agreement (including the right to enforce
the related Early Payment Default Mortgage Loans) but, in each case, only to
the
extent assigned under the Mortgage Loan Sale Agreement. The Trustee hereby
accepts such assignment and delegation, and shall be entitled to exercise all
the rights of the Depositor under the Mortgage Loan Sale Agreement as if, for
such purpose, it were the Depositor. The foregoing sale, transfer, assignment,
set-over, deposit, delegation and conveyance does not and is not intended to
result in the creation or assumption by the Trustee of any obligation of the
Depositor, the Sellers or any other Person in connection with the Mortgage
Loans
or any other agreement or instrument relating thereto except as specifically
set
forth herein.
Concurrently
with the execution of this Agreement, the Certificate Insurance Policy shall
be
delivered to the Trustee.
(b) In
connection with such transfer and assignment, the Depositor does hereby deliver
to, and deposit with, or cause to be delivered to and deposited with, the
Trustee, and/or a Custodian acting on the Trustee’s behalf, the following
documents or instruments with respect to each Mortgage Loan (each a “Mortgage
File”) so transferred and assigned:
(i) with
respect to each Mortgage Loan, the original Mortgage Note endorsed without
recourse in proper form to the order of the Trustee, as shown on Exhibit B-4
hereto, or in blank (in each case, with all necessary intervening endorsements,
as applicable) or with respect to any lost Mortgage Note, a lost note affidavit
stating that the original Mortgage Note was lost, misplaced or destroyed,
together with a copy of the related Mortgage Note;
(ii) if
applicable, the original of any guarantee, security agreement or pledge
agreement executed in connection with the Mortgage Note, assigned to the
Trustee;
(iii) with
respect to any Mortgage Loan other than a Cooperative Loan, the original
recorded Mortgage with evidence of recording indicated thereon and the original
recorded power of attorney, with evidence of recording thereon. If, in
connection with any Mortgage Loan, the Depositor cannot deliver the Mortgage
or
power of attorney with evidence of recording thereon on or prior to the Closing
Date because of a delay caused by the public recording office where such
Mortgage has been delivered for recordation or because such Mortgage or power
of
attorney has been lost, the Depositor shall deliver or cause to be delivered
to
the Trustee (or the Custodian), in the case of a delay due to recording, a
true
copy of such Mortgage or power of attorney, pending delivery of the original
thereof, together with an Officer’s Certificate of the Depositor certifying that
the copy of such Mortgage or power of attorney delivered to the Trustee (or
its
Custodian) is a true copy and that the original of such Mortgage or power of
attorney has been forwarded to the public recording office, or, in the case
of a
Mortgage or power of attorney that has been lost, a copy thereof (certified
as
provided for under the laws of the appropriate jurisdiction) and a written
Opinion of Counsel delivered to the Trustee and the Depositor that an original
recorded Mortgage or power of attorney is not required to enforce the Trustee’s
interest in the Mortgage Loan;
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(iv) the
original of each assumption, modification or substitution agreement, if any,
relating to the Mortgage Loans, or, as to any assumption, modification or
substitution agreement which cannot be delivered on or prior to the Closing
Date
because of a delay caused by the public recording office where such assumption,
modification or substitution agreement has been delivered for recordation,
a
photocopy of such assumption, modification or substitution agreement, pending
delivery of the original thereof, together with an Officer’s Certificate of the
Depositor certifying that the copy of such assumption, modification or
substitution agreement delivered to the Trustee (or the Custodian) is a true
copy and that the original of such agreement has been forwarded to the public
recording office;
(v) with
respect to each Non-MERS Mortgage Loan, an original Assignment of Mortgage,
in
form and substance acceptable for recording. The related Mortgage shall be
assigned either (A) in blank, without recourse or (B) to “U.S. Bank National
Association, as Trustee of the Xxxxxx XS Trust Mortgage Pass-Through
Certificates, Series 2007-15N,” without recourse;
(vi) if
applicable, such original intervening assignments of the Mortgage, notice of
transfer or equivalent instrument (each, an “Intervening Assignment”), as may be
necessary to show a complete chain of assignment from the originator, or, in
the
case of an Intervening Assignment that has been lost, a written Opinion of
Counsel delivered to the Trustee that such original Intervening Assignment
is
not required to enforce the Trustee’s interest in the Mortgage
Loans;
(vii) with
respect to any Mortgage Loan other than a Cooperative Loan, the original
mortgagee title insurance policy or attorney’s opinion of title and abstract of
title, and, if applicable, the original Primary Mortgage Insurance Policy or
certificate;
(viii) the
original of any security agreement, chattel mortgage or equivalent instrument
executed in connection with the Mortgage or as to any security agreement,
chattel mortgage or their equivalent instrument that cannot be delivered on
or
prior to the Closing Date because of a delay caused by the public recording
office where such document has been delivered for recordation, a photocopy
of
such document, pending delivery of the original thereof, together with an
Officer’s Certificate of the Depositor certifying that the copy of such security
agreement, chattel mortgage or their equivalent instrument delivered to the
Trustee (or the Custodian) is a true copy and that the original of such document
has been forwarded to the public recording office;
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(ix) it
is
agreed and understood by the Depositor and the Trustee (and the Seller has
so
represented and recognized in the Mortgage Loan Sale Agreement) that it is
not
intended that any Mortgage Loan to be included in the Trust Fund be (i) a
“High-Cost Home Loan” as defined in the New Jersey Home Ownership Act effective
November 27, 2003, (ii) a “High-Cost Home Loan” as defined in the New Mexico
Home Loan Protection Act effective January 1, 2004, (iii) a “High-Cost Home
Mortgage Loan” as defined in the Massachusetts Predatory Home Loan Practices Act
effective November 7, 2004 or (iv) a “High Cost Home Loan” as defined in the
Indiana Home Loan Practices Act effective January 1, 2005;
(x) with
respect to any manufactured housing contract, any related manufactured housing
sales contract, installment loan agreement or participation interest;
and
(xi) with
respect to any Cooperative Loan, the Cooperative Loan Documents.
The
parties hereto acknowledge and agree that the form of endorsement attached
hereto as Exhibit B-4 is intended to effect the transfer to the Trustee, for
the
benefit of the Certificateholders, of the Mortgage Notes and the
Mortgages.
(c) (a) Assignments
of Mortgage with respect to each Non-MERS Mortgage Loan other than a Cooperative
Loan shall be recorded; provided, however, that such Assignments need not be
recorded if, on or prior to the Closing Date, the Depositor delivers, at its
own
expense, an Opinion of Counsel addressed to the Trustee (which must be
Independent counsel) acceptable to the Trustee, the Rating Agencies and any
NIMS
Insurer, to the effect that recording in such states is not required to protect
the Trustee’s interest in the related Non-MERS Mortgage Loans; provided,
further, that notwithstanding the delivery of any Opinion of Counsel, the Master
Servicer shall cause the Servicer to submit each Assignment of Mortgage for
recording upon the occurrence of a bankruptcy, insolvency or foreclosure
relating to the Mortgagor under the related Mortgage. Subject to the preceding
sentence, as soon as practicable after the Closing Date (but in no event more
than three months thereafter except to the extent delays are caused by the
applicable recording office), the Master Servicer, at the expense of the
Depositor and with the cooperation of the applicable Servicer, shall cause
to be
properly recorded by such Servicer in each public recording office where the
related Mortgages are recorded each Assignment of Mortgage referred to in
subsection (b)(v) above with respect to each Non-MERS Mortgage Loan. With
respect to each Cooperative Loan, the Master Servicer, at the expense of the
Depositor and with the cooperation of the applicable Servicer, shall cause
such
Servicer to take such actions as are necessary under applicable law in order
to
perfect the interest of the Trustee in the related Mortgaged
Property.
(ii) With
respect to each MERS Mortgage Loan, the Master Servicer, at the expense of
the
Depositor and with the cooperation of the Servicer, shall cause the Servicer
to
take such actions as are necessary to cause the Trustee to be clearly identified
as the owner of each such Mortgage Loan on the records of MERS for purposes
of
the system of recording transfers of beneficial ownership of mortgages
maintained by MERS.
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(d) In
instances where a Title Insurance Policy is required to be delivered to the
Trustee or the Custodian on behalf of the Trustee under clause (b)(vii) above
and is not so delivered, the Depositor will provide a copy of such Title
Insurance Policy to the Trustee, or to the Custodian on behalf of the Trustee,
as promptly as practicable after the execution and delivery hereof, but in
any
case within 180 days of the Closing Date.
(e) For
Mortgage Loans (if any) that have been prepaid in full after the Cut-off Date
and prior to the Closing Date, the Depositor, in lieu of delivering the above
documents, herewith delivers to the Trustee, or to the Custodian on behalf
of
the Trustee, an Officer’s Certificate which shall include a statement to the
effect that all amounts received in connection with such prepayment that are
required to be deposited in the Collection Account pursuant to Section 4.01
have
been so deposited. All original documents that are not delivered to the Trustee
or the Custodian on behalf of the Trustee shall be held by the Master Servicer
or the applicable Servicer in trust for the benefit of the Trustee and the
Certificateholders.
(f) The
issuing entity is hereby named Xxxxxx XS Trust, Series 2007-15N.
Section
2.02. Acceptance
of Trust Fund by Trustee: Review of Documentation for Trust Fund.
(a) The
Trustee, by execution and delivery hereof, acknowledges receipt by it or by
the
Custodian on its behalf of the Mortgage Files pertaining to the Mortgage Loans
listed on the Mortgage Loan Schedule, subject to review thereof by the Trustee,
or by the Custodian on behalf of the Trustee, under this Section 2.02. The
Trustee, or the Custodian on behalf of the Trustee, will execute and deliver
to
the Trustee, the Depositor, the Master Servicer and any NIMS Insurer on the
Closing Date an Initial Certification in the form annexed hereto as Exhibit
B-1
(or in the form annexed to the Custodial Agreement as Exhibit B-1, as
applicable).
(b) Within
45
days after the Closing Date, the Trustee or the Custodian on behalf of the
Trustee, will, for the benefit of Holders of the Certificates and any NIMS
Insurer, review each Mortgage File to ascertain that all required documents
set
forth in Section 2.01 have been received and appear on their face to contain
the
requisite signatures by or on behalf of the respective parties thereto, and
shall deliver to the Trustee, the Depositor, the Master Servicer and any NIMS
Insurer an Interim Certification in the form annexed hereto as Exhibit B-2
(or
in the form annexed to the applicable Custodial Agreement as Exhibit B-2, as
applicable) to the effect that, as to each Mortgage Loan listed in the Mortgage
Loan Schedule (other than any Mortgage Loan prepaid in full or any specifically
identified in such certification as not covered by such certification), (i)
all
of the applicable documents specified in Section 2.01(b) are in its possession
and (ii) such documents have been reviewed by it and appear to relate to such
Mortgage Loan. The Trustee, or the Custodian on behalf of the Trustee, shall
determine whether such documents are executed and endorsed, but shall be under
no duty or obligation to inspect, review or examine any such documents,
instruments, certificates or other papers to determine that the same are valid,
binding, legally effective, properly endorsed, genuine, enforceable or
appropriate for the represented purpose or that they have actually been recorded
or are in recordable form or that they are other than what they purport to
be on
their face. Neither the Trustee nor the Custodian shall have any responsibility
for verifying the genuineness or the legal effectiveness of or authority for
any
signatures of or on behalf of any party or endorser.
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(c) If
in the
course of the review described in paragraph (b) above the Trustee or the
Custodian discovers any document or documents constituting a part of a Mortgage
File that is missing, does not appear regular on its face (i.e., is mutilated,
damaged, defaced, torn or otherwise physically altered) or appears to be
unrelated to the Mortgage Loans identified in the Mortgage Loan Schedule (each,
a “Material Defect”), the Trustee, or the Custodian on behalf of the Trustee,
discovering such Material Defect shall promptly identify the Mortgage Loan
to
which such Material Defect relates in the Interim Certification delivered to
the
Trustee, the Depositor, the Master Servicer and any NIMS Insurer. Within 90
days
of its receipt of such notice, the Transferor, or, if the Transferor does not
do
so, the Depositor shall be required to cure such Material Defect (and, in such
event, the Depositor shall provide the Trustee with an Officer’s Certificate
confirming that such cure has been effected). If the applicable Transferor
or
the Depositor, as applicable, does not so cure such Material Defect, the
Transferor, or, if the Transferor does not do so, the Depositor, shall, if
a
loss has been incurred with respect to such Mortgage Loan that would, if such
Mortgage Loan were not purchased from the Trust Fund, constitute a Realized
Loss, and such loss is attributable to the failure of the Depositor to cure
such
Material Defect, repurchase the related Mortgage Loan from the Trust Fund at
the
Purchase Price. A loss shall be deemed to be attributable to the failure of
the
Depositor to cure a Material Defect if, as determined by the Depositor, upon
mutual agreement with the Trustee each acting in good faith, absent such
Material Defect, such loss would not have been incurred. Within the two-year
period following the Closing Date, the Depositor may, in lieu of repurchasing
a
Mortgage Loan pursuant to this Section 2.02, substitute for such Mortgage Loan
a
Qualifying Substitute Mortgage Loan subject to the provisions of Section 2.05.
The failure of the Trustee or the Custodian to give the notice contemplated
herein within 45 days after the Closing Date shall not affect or relieve the
Depositor of its obligation to repurchase any Mortgage Loan pursuant to this
Section 2.02 or any other Section of this Agreement requiring the repurchase
of
Mortgage Loans from the Trust Fund.
(d) Within
180 days following the Closing Date, the Trustee, or the Custodian, shall
deliver to the Trustee, the Depositor, the Master Servicer and any NIMS Insurer
a Final Certification substantially in the form attached as Exhibit B-3 (or
in
the form annexed to the Custodial Agreement as Exhibit B-3, as applicable)
evidencing the completeness of the Mortgage Files in its possession or control,
with any exceptions noted thereto.
(e) Nothing
in this Agreement shall be construed to constitute an assumption by the Trust
Fund, the Trustee, the Custodian, the Certificate Insurer or the
Certificateholders of any unsatisfied duty, claim or other liability on any
Mortgage Loan or to any Mortgagor.
(f) Each
of
the parties hereto acknowledges that the Custodian shall perform the applicable
review of the Mortgage Loans and respective certifications thereof as provided
in this Section 2.02 and in the Custodial Agreement.
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(g) Upon
execution of this Agreement, the Depositor hereby delivers to the Trustee and
the Trustee acknowledges a receipt of the Mortgage Loan Sale Agreement and
the
Servicing Agreement.
Section
2.03. Representations
and Warranties of the Depositor.
(a) The
Depositor hereby represents and warrants to the Trustee, for the benefit of
Certificateholders, to the Certificate Insurer and to the Master Servicer as
of
the Closing Date or such other date as is specified, that:
(i) the
Depositor is a corporation duly organized, validly existing and in good standing
under the laws governing its creation and existence and has full corporate
power
and authority to own its property, to carry on its business as presently
conducted, to enter into and perform its obligations under this Agreement,
and
to create the trust pursuant hereto;
(ii) the
execution and delivery by the Depositor of this Agreement have been duly
authorized by all necessary corporate action on the part of the Depositor;
neither the execution and delivery of this Agreement, nor the consummation
of
the transactions herein contemplated, nor compliance with the provisions hereof,
will conflict with or result in a breach of, or constitute a default under,
any
of the provisions of any law, governmental rule, regulation, judgment, decree
or
order binding on the Depositor or its properties or the certificate of
incorporation or bylaws of the Depositor;
(iii) the
execution, delivery and performance by the Depositor of this Agreement and
the
consummation of the transactions contemplated hereby do not require the consent
or approval of, the giving of notice to, the registration with, or the taking
of
any other action in respect of, any state, federal or other governmental
authority or agency, except such as has been obtained, given, effected or taken
prior to the date hereof;
(iv) this
Agreement has been duly executed and delivered by the Depositor and, assuming
due authorization, execution and delivery by the Trustee and the Master Servicer
constitutes a valid and binding obligation of the Depositor enforceable against
it in accordance with its terms except as such enforceability may be subject
to
(A) applicable bankruptcy and insolvency laws and other similar laws affecting
the enforcement of the rights of creditors generally and (B) general principles
of equity regardless of whether such enforcement is considered in a proceeding
in equity or at law;
(v) there
are
no actions, suits or proceedings pending or, to the knowledge of the Depositor,
threatened or likely to be asserted against or affecting the Depositor, before
or by any court, administrative agency, arbitrator or governmental body (A)
with
respect to any of the transactions contemplated by this Agreement or (B) with
respect to any other matter which in the judgment of the Depositor will be
determined adversely to the Depositor and will if determined adversely to the
Depositor materially and adversely affect it or its business, assets, operations
or condition, financial or otherwise, or adversely affect its ability to perform
its obligations under this Agreement; and
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(vi) immediately
prior to the transfer and assignment of the Mortgage Loans to the Trustee,
the
Depositor was the sole owner of record and holder of each Mortgage Loan, and
the
Depositor had good and marketable title thereto, and had full right to transfer
and sell each Mortgage Loan to the Trustee free and clear, subject only to
(1)
liens of current real property taxes and assessments not yet due and payable
and, if the related Mortgaged Property is a condominium unit, any lien for
common charges permitted by statute, (2) covenants, conditions and restrictions,
rights of way, easements and other matters of public record as of the date
of
recording of such Mortgage acceptable to mortgage lending institutions in the
area in which the related Mortgaged Property is located and specifically
referred to in the lender’s Title Insurance Policy or attorney’s opinion of
title and abstract of title delivered to the originator of such Mortgage Loan,
and (3) such other matters to which like properties are commonly subject which
do not, individually or in the aggregate, materially interfere with the benefits
of the security intended to be provided by the Mortgage, of any encumbrance,
equity, participation interest, lien, pledge, charge, claim 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 each
Mortgage Loan pursuant to this Agreement.
(b) The
representations and warranties of the Transferor with respect to the related
Mortgage Loans in the applicable Transfer Agreement, which have been assigned
to
the Trustee hereunder, were made as of the date specified in the applicable
Transfer Agreement (or underlying agreement, if such Transfer Agreement is
in
the form of an assignment of a prior agreement). To the extent that any fact,
condition or event with respect to a Mortgage Loan constitutes a breach of
both
(i) a representation or warranty of the applicable Transferor under the
applicable Transfer Agreement and (ii) a representation or warranty of the
Seller under the Mortgage Loan Sale Agreement, the only right or remedy of
the
Trustee or any Certificateholder hereunder (other than a breach by the Seller
of
the representations made pursuant to Sections 1.04(b)(xii), 1.04(b)(xvii),
1.04(b)(xviii), 1.04(b)(ix) and 1.04(b)(xx) of the Mortgage Loan Sale Agreement)
shall be their rights to enforce the obligations of the applicable Transferor
under any applicable representation or warranty made by it. Pursuant to the
terms of the Mortgage Loan Sale Agreement, the representations and warranties
made by the Seller pursuant to Sections 1.04(b)(xii), 1.04(b)(xvii),
1.04(b)(xviii), 1.04(b)(ix) and 1.04(b)(xx) of the Mortgage Loan Sale Agreement
shall be the direct obligations of the Seller. With the exception of the
immediately proceeding sentence, the Seller shall not have any other obligation
or liability with respect to any breach of a representation or warranty made
by
it with respect to the Mortgage Loans sold by it if the fact, condition or
event
constituting such breach also constitutes a breach of a representation or
warranty made by the applicable Transferor in the applicable Transfer Agreement,
without regard to whether such Transferor fulfills its contractual obligations
in respect of such representation or warranty. The Depositor shall have no
obligation or liability with respect to any breach of any representation or
warranty with respect to the Mortgage Loans (except as set forth in Section
2.03(a)(vi)) under any circumstances.
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Section
2.04. Discovery
of Breach.
It
is
understood and agreed that the representations and warranties (i) set forth
in
Section 2.03, (ii) of the Seller set forth in the Mortgage Loan Sale Agreement
and assigned to the Depositor by the Seller under the Mortgage Loan Sale
Agreement and to the Trustee by the Depositor hereunder and (iii) of the
Transferor and of the Servicer assigned by the Seller to the Depositor pursuant
to the Mortgage Loan Sale Agreement and assigned to the Trustee by the Depositor
hereunder, shall each survive delivery of the Mortgage Files and the Assignment
of Mortgage of each Mortgage Loan to the Trustee and shall continue throughout
the term of this Agreement. Upon discovery by any of the Depositor, any NIMS
Insurer, the Certificate Insurer, the Master Servicer or the Trustee of a breach
of any of such representations and warranties that materially and adversely
affects the value of the related Mortgage Loan, the party discovering such
breach shall give prompt written notice to the other parties; provided, to
the
extent that knowledge of such breach with respect to any Mortgage Loan is known
by any officer, director, employee or agent of Aurora acting in any capacity
other than as Master Servicer hereunder, the Master Servicer shall not be deemed
to have knowledge of any such breach until an officer of Aurora acting in a
capacity as Master Servicer has actual knowledge thereof. Within 90 days of
the
discovery of a breach of any representation or warranty given to the Trustee
and
the Certificate Insurer by the Depositor or given by a Transferor or the Seller
and assigned to the Trustee, the Depositor, such Transferor or the Seller,
as
applicable, shall either (a) cure such breach in all material respects, (b)
repurchase such Mortgage Loan or any property acquired in respect thereof from
the Trustee at the Purchase Price (or in the case of a Early Payment Default
Mortgage Loan or a First Payment Default Mortgage Loan, the FPD Purchase Price
(excluding the FPD Premium) or the EPD Purchase Price (excluding the EPD
Premium), respectively) (or, with respect to Mortgage Loans as to which there
is
a breach of a representation or warranty set forth in Section 1.04(b)(v) of
the
Mortgage Loan Sale Agreement, at the purchase price therefor paid by the Seller
under the Mortgage Loan Sale Agreement) or (c) within the two-year period
following the Closing Date, substitute a Qualifying Substitute Mortgage Loan
for
the affected Mortgage Loan. In the event of discovery of a breach of any
representation and warranty of a Transferor assigned to the Trustee, the Trustee
shall enforce its rights under the applicable Transfer Agreement and the
Mortgage Loan Sale Agreement for the benefit of Certificateholders. As provided
in the Mortgage Loan Sale Agreements, if a Transferor substitutes a mortgage
loan for a Deleted Mortgage Loan pursuant to the Transfer Agreement and such
substitute mortgage loan is not a Qualifying Substitute Mortgage Loan, then
pursuant to the terms of the Mortgage Loan Sale Agreement the Seller will,
in
exchange for such substitute mortgage loan, (i) pay to the Trust Fund the
applicable Purchase Price for the affected Mortgage Loan or (ii) within two
years of the Closing Date, substitute a Qualifying Substitute Mortgage
Loan.
Section
2.05. Repurchase,
Purchase or Substitution of Mortgage Loans.
(a) With
respect to any Mortgage Loan repurchased by the Depositor pursuant to this
Agreement, by the Seller pursuant to the Mortgage Loan Sale Agreement, or by
the
Transferor pursuant to the applicable Transfer Agreement, the principal portion
of the funds (including the FPD Purchase Price or EPD Purchase Price but
excluding the FPD Premium or EPD Premium in the case of a First Payment Default
Mortgage Loan or an Early Payment Default Mortgage Loan, respectively) received
by the Master Servicer in respect of such repurchase of a Mortgage Loan will
be
considered a Principal Prepayment and the Purchase Price, FPD Purchase Price
or
EPD Purchase Price shall be deposited in the Collection Account or a Custodial
Account, as applicable. The Trustee (i) upon receipt of the full amount of
the
Purchase Price for a Deleted Mortgage Loan, (ii) upon receipt of a written
certification from the Master Servicer that it has received the full amount
of
the Purchase Price for a Deleted Mortgage Loan and has deposited such amount
in
the Collection Account or (iii) upon receipt of notification from the Custodian
that it had received the Mortgage File for a Qualifying Substitute Mortgage
Loan
substituted for a Deleted Mortgage Loan (and any applicable Substitution
Amount), shall release or cause to be released and reassign to the Depositor,
the Seller or the Transferor, as applicable, the related Mortgage File for
the
Deleted Mortgage Loan and shall execute and deliver such instruments of transfer
or assignment, in each case without recourse, representation or warranty, as
shall be necessary to vest in such party or its designee or assignee title
to
any Deleted Mortgage Loan released pursuant hereto, free and clear of all
security interests, liens and other encumbrances created by this Agreement,
which instruments shall be prepared by the applicable Servicer and the Trustee
shall have no further responsibility with respect to the Mortgage File relating
to such Deleted Mortgage Loan. The Seller indemnifies and holds the Trust Fund,
the Master Servicer, the Trustee, the Certificate Insurer, the Depositor and
each Certificateholder harmless against any and all taxes, claims, losses,
penalties, fines, forfeitures, reasonable legal fees and related costs,
judgments, and any other costs, fees and expenses that the Trust Fund, the
Trustee, the Master Servicer, the Certificate Insurer, the Depositor and any
Certificateholder may sustain in connection with any actions of the Seller
relating to a repurchase of a Mortgage Loan other than in compliance with the
terms of this Section 2.05 and the Mortgage Loan Sale Agreement, to the extent
that any such action causes an Adverse REMIC Event.
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(b) With
respect to each Qualifying Substitute Mortgage Loan to be delivered to the
Trustee (or the Custodian) pursuant to the terms of this Article II in exchange
for a Deleted Mortgage Loan: (i) the Depositor, the Transferor or the Seller,
as
applicable, must deliver to the Trustee (or the Custodian) the Mortgage File
for
the Qualifying Substitute Mortgage Loan containing the documents set forth
in
Section 2.01(b) along with a written certification certifying as to the delivery
of such Mortgage File and containing the granting language set forth in Section
2.01(a); and (ii) the Depositor will be deemed to have made, with respect to
such Qualifying Substitute Mortgage Loan, each of the representations and
warranties made by it with respect to the related Deleted Mortgage Loan. As
soon
as practicable after the delivery of any Qualifying Substitute Mortgage Loan
hereunder, the Master Servicer, at the expense of the Depositor and with the
cooperation of the applicable Servicer, shall (i) with respect to a Qualifying
Substitute Mortgage Loan that is a Non-MERS Mortgage Loan, cause the Assignment
of Mortgage to be recorded by the applicable Servicer if required pursuant
to
Section 2.01(c), or (ii) with respect to a Qualifying Substitute Mortgage Loan
that is a MERS Mortgage Loan, cause to be taken such actions as are necessary
to
cause the Trustee to be clearly identified as the owner of each such Mortgage
Loan on the records of MERS if required pursuant to Section
2.01(c).
(c) Notwithstanding
any other provision of this Agreement, the right to substitute Mortgage Loans
pursuant to this Article II shall be subject to the additional limitations
that
no substitution of a Qualifying Substitute Mortgage Loan for a Deleted Mortgage
Loan shall be made unless the Trustee and the NIMS Insurer have received an
Opinion of Counsel (at the expense of the party seeking to make the
substitution) that, under current law, such substitution will not result in
an
Adverse REMIC Event.
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Section
2.06. Grant
Clause.
(a) It
is
intended that the conveyance of the Depositor’s right, title and interest in and
to property constituting the Trust Fund pursuant to this Agreement shall
constitute, and shall be construed as, a sale of such property and not a grant
of a security interest to secure a loan. However, if such conveyance is deemed
to be in respect of a loan, it is intended that: (1) the rights and obligations
of the parties shall be established pursuant to the terms of this Agreement;
(2)
the Depositor hereby grants to the Trustee for the benefit of the Holders of
the
Certificates and the Certificate Insurer a first priority security interest
to
secure repayment of an obligation in an amount equal to the aggregate Class
Principal Amount of the Certificates in all of the Depositor’s right, title and
interest in, to and under, whether now owned or hereafter acquired, the Trust
Fund and the Supplemental Interest Trust and all proceeds of any and all
property constituting the Trust Fund and the Supplemental Interest Trust to
secure payment of the Certificates (such security interest being, to the extent
of the assets that constitute the Supplemental Interest Trust, pari passu with
the security interest as provided in clause (4) below); (3) this Agreement
shall
constitute a security agreement under applicable law; and (4) the Swap
Counterparty shall be deemed, during the term of such agreement and while such
agreement is the property of the Trustee, to have a security interest in all
of
the assets that constitute the Supplemental Interest Trust, but only to the
extent of such Swap Counterparty’s right to payment under the Swap Agreement
(such security interest being pari passu with the security interest as provided
in clause (2) above). If such conveyance is deemed to be in respect of a loan
and the trust created by this Agreement terminates prior to the satisfaction
of
the claims of any Person holding any Certificate, the security interest created
hereby shall continue in full force and effect and the Trustee shall be deemed
to be the collateral agent for the benefit of such Person, and all proceeds
shall be distributed as herein provided.
(b) The
Depositor shall, to the extent consistent with this Agreement, take such
reasonable actions as may be necessary to ensure that, if this Agreement were
deemed to create a security interest in the Mortgage Loans and the other
property described above, such security interest would be deemed to be a
perfected security interest of first priority under applicable law and shall
be
maintained as such throughout the term of this Agreement. The Depositor shall,
at its own expense, make all initial filings on or about the Closing Date and
shall forward a copy of such filing or filings to the Trustee. Without limiting
the generality of the foregoing, the Depositor shall prepare and forward for
filing, or shall cause to be forwarded for filing, at the expense of the
Depositor, all filings necessary to maintain the effectiveness of any original
filings necessary under the relevant UCC to perfect the Trustee’s security
interest in or lien on the Mortgage Loans, including without limitation (x)
continuation statements, and (y) such other statements as may be occasioned
by
(1) any change of name of the Seller, the Depositor or the Trustee, (2) any
change of location of the jurisdiction of organization of the Seller or the
Depositor, (3) any transfer of any interest of the Seller or the Depositor
in
any Mortgage Loan or (4) any change under the relevant UCC or other applicable
laws. Neither the Seller nor the Depositor shall organize under the law of
any
jurisdiction other than the State under which each is organized as of the
Closing Date (whether changing its jurisdiction of organization or organizing
under an additional jurisdiction) without giving 30 days prior written notice
of
such action to its immediate and intermediate transferee, including the Trustee.
Before effecting such change, the Seller or the Depositor proposing to change
its jurisdiction of organization shall prepare and file in the appropriate
filing office any financing statements or other statements necessary to continue
the perfection of the interests of its immediate and mediate transferees,
including the Trustee, in the Mortgage Loans. In connection with the
transactions contemplated by this Agreement, the Seller and the Depositor
authorizes its immediate or mediate transferee to file in any filing office
any
initial financing statements, any amendments to financing statements, any
continuation statements, or any other statements or filings described in this
paragraph (b).
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ARTICLE
III.
THE
CERTIFICATES
Section
3.01. The
Certificates.
(a) The
Certificates (other than the Underlying Interests) shall be issuable in
registered form only and shall be securities governed by Article 8 of the New
York Uniform Commercial Code. The Book-Entry Certificates will be evidenced
by
one or more certificates, beneficial ownership of which will be held in the
dollar denominations in Certificate Principal Amount (or Notional Amount),
or in
the Percentage Interests, specified herein. Each Class of LIBOR Certificates
(other than the Underlying Interests), Grantor Trust Certificates, Notional
Certificates and the Class AP-I, Class 3-AP and Class 4-AP Certificates will
be
issued in the minimum denominations in Certificate Principal Amount (or Notional
Amount) specified in the Preliminary Statement hereto and in integral multiples
of $1 in excess thereof. The Class C-I, Class C-II, Class X-I, and Class X-II
Certificates shall be maintained in definitive, fully registered form in a
minimum denomination equal to 10% of the Percentage Interest of the Class.
The
Class R Certificate shall be issued as a single Certificate and maintained
in
definitive, fully registered form in a minimum denomination equal to 100% of
the
Percentage Interest of such Class. The Certificates (other than the Underlying
Interests) may be issued in the form of typewritten certificates.
(b) The
Certificates (other than the Underlying Interests) shall be executed by manual
or facsimile signature on behalf of the Trustee by an authorized officer. Each
Certificate (other than the Underlying Interests) shall, on original issue,
be
authenticated by the Trustee upon the order of the Depositor upon receipt by
the
Trustee of the Mortgage Files described in Section 2.01. No Certificate (other
than the Underlying Interests) shall be entitled to any benefit under this
Agreement, or be valid for any purpose, unless there appears on such Certificate
a certificate of authentication substantially in the form provided for herein,
executed by an authorized officer of the Trustee or the Authenticating Agent,
if
any, by manual signature, and such certification upon any Certificate shall
be
conclusive evidence, and the only evidence, that such Certificate has been
duly
authenticated and delivered hereunder. All Certificates (other than the
Underlying Interests) shall be dated the date of their authentication. At any
time and from time to time after the execution and delivery of this Agreement,
the Depositor may deliver Certificates executed by the Depositor to the Trustee
or the Authenticating Agent for authentication and the Trustee or the
Authenticating Agent shall authenticate and deliver such Certificates as in
this
Agreement provided and not otherwise.
(c) The
Privately Offered Certificates offered and sold in reliance on the exemption
from registration under Rule 144A under the Act shall be issued initially in
the
form of one or more permanent global Certificates in definitive, fully
registered form without interest coupons with the applicable legends set forth
in Exhibit A added to the forms of such Certificates (each, a “Restricted Global
Security”), which shall be deposited on behalf of the subscribers for such
Certificates represented thereby with the Trustee, as custodian for The
Depository Trust Company (“DTC”) and registered in the name of a nominee of DTC,
duly executed and authenticated by the Trustee as hereinafter provided. The
aggregate principal amounts of the Restricted Global Securities may from time
to
time be increased or decreased by adjustments made on the records of the Trustee
or DTC or its nominee, as the case may be, as hereinafter provided.
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(d) The
Privately Offered Certificates sold in offshore transactions in reliance on
Regulation S shall be issued initially in the form of one or more permanent
global Certificates in definitive, fully registered form without interest
coupons with the applicable legends set forth in Exhibit A hereto added to
the
forms of such Certificates (each, a “Regulation S Global Security”), which shall
be deposited on behalf of the subscribers for such Certificates represented
thereby with the Trustee, as custodian for DTC and registered in the name of
a
nominee of DTC, duly executed and authenticated by the Trustee as hereinafter
provided. The aggregate principal amounts of the Regulation S Global Securities
may from time to time be increased or decreased by adjustments made on the
records of the Trustee or DTC or its nominee, as the case may be, as hereinafter
provided.
(e) The
Privately Offered Certificates sold to an “accredited investor” under Rule
501(a)(1), (2), (3) or (7) under the Act shall be issued initially in the form
of one or more Definitive Certificates.
Section
3.02. Registration.
The
Trustee is hereby appointed, and hereby accepts its appointment as, Certificate
Registrar in respect of the Certificates (other than the Underlying Interests)
and shall maintain books for the registration and for the transfer of
Certificates (the “Certificate Register”). The Trustee may appoint a bank or
trust company to act as Certificate Registrar. A registration book shall be
maintained for the Certificates collectively. The Certificate Registrar may
resign or be discharged or removed and a new successor may be appointed in
accordance with the procedures and requirements set forth in Sections 6.06
and
6.07 hereof with respect to the resignation, discharge or removal of the Trustee
and the appointment of a successor trustee. The Certificate Registrar may
appoint, by a written instrument delivered to the Holders and the Master
Servicer, any bank or trust company to act as co registrar under such conditions
as the Certificate Registrar may prescribe; provided, however, that the
Certificate Registrar shall not be relieved of any of its duties or
responsibilities hereunder by reason of such appointment.
Section
3.03. Transfer
and Exchange of Certificates.
(a) A
Certificate (other than a Book-Entry Certificate, which shall be subject to
Section 3.09 hereof) may be transferred by the Holder thereof only upon
presentation and surrender of such Certificate at the office of the Certificate
Registrar duly endorsed or accompanied by an assignment duly executed by such
Holder or his duly authorized attorney in such form as shall be satisfactory
to
the Certificate Registrar. Upon the transfer of any Certificate in accordance
with the preceding sentence, the Trustee shall execute, and the Trustee or
any
Authenticating Agent shall authenticate and deliver to the transferee, one
or
more new Certificates of the same Class and evidencing, in the aggregate, the
same aggregate Certificate Principal Amount or Percentage Interest as the
Certificate being transferred. No service charge shall be made to a
Certificateholder for any registration of transfer of Certificates, but the
Certificate Registrar may require payment of a sum sufficient to cover any
tax
or governmental charge that may be imposed in connection with any registration
of transfer of Certificates.
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(b) A
Certificate may be exchanged by the Holder thereof for any number of new
Certificates of the same Class, in authorized denominations, representing in
the
aggregate the same Certificate Principal Amount or Percentage Interest as the
Certificate surrendered, upon surrender of the Certificate to be exchanged
at
the office of the Certificate Registrar duly endorsed or accompanied by a
written instrument of transfer duly executed by such Holder or his duly
authorized attorney in such form as is satisfactory to the Certificate
Registrar. Certificates delivered upon any such exchange will evidence the
same
obligations, and will be entitled to the same rights and privileges, as the
Certificates surrendered. No service charge shall be made to a Certificateholder
for any exchange of Certificates (except as provided in the Exchange Trust
Agreement), but the Certificate Registrar may require payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any exchange of Certificates. Whenever any Certificates are
so
surrendered for exchange, the Trustee shall execute, and the Trustee or the
Authenticating Agent shall authenticate, date and deliver the Certificates
which
the Certificateholder making the exchange is entitled to receive.
(c) By
acceptance of a Restricted Certificate, QIB-Restricted Certificate or Regulation
S Global Security, whether upon original issuance or subsequent transfer, each
Holder of such a Certificate acknowledges the restrictions on the transfer
of
such Certificate set forth thereon and agrees that it will transfer such a
Certificate only as provided herein. In addition, each Holder of a Regulation
S
Global Security shall be deemed to have represented and warranted to the
Trustee, the Certificate Registrar and any of their respective successors that:
(i) such Person is not a U.S. person within the meaning of Regulation S and
was,
at the time the buy order was originated, outside the United States and (ii)
such Person understands that such Certificates have not been registered under
the Act, and that (x) until the expiration of the 40-day distribution compliance
period (within the meaning of Regulation S), no offer, sale, pledge or other
transfer of such Certificates or any interest therein shall be made in the
United States or to or for the account or benefit of a U.S. person (each as
defined in Regulation S), (y) if in the future it decides to offer, resell,
pledge or otherwise transfer such Certificates, such Certificates may be
offered, resold, pledged or otherwise transferred only (A) to a person which
the
seller reasonably believes is a “qualified institutional buyer” (a “QIB”) as
defined in Rule 144A under the Act, that is purchasing such Certificates for
its
own account or for the account of a qualified institutional buyer to which
notice is given that the transfer is being made in reliance on Rule 144A or
(B)
in an offshore transaction (as defined in Regulation S) in compliance with
the
provisions of Regulation S, in each case in compliance with the requirements
of
this Agreement; and it will notify such transferee of the transfer restrictions
specified in this Section.
The
following restrictions shall apply with respect to the transfer and registration
of transfer of a Restricted Certificate to a transferee that takes delivery
in
the form of a Definitive Certificate and such restrictions applicable to
Exchange Certificates shall also apply to Exchangeable
Certificates:
(i) The
Certificate Registrar shall register the transfer of a Restricted Certificate
if
the requested transfer is (x) to the Depositor, the Placement Agent or an
affiliate (as defined in Rule 405 under the Securities Act of 1933, as amended
(the “Act”)) of the Depositor or the Placement Agent or (y) being made to a
“qualified institutional buyer” (a “QIB”) as defined in Rule 144A under the Act
by a transferor that has provided the Trustee with a certificate in the form
of
Exhibit F hereto; and
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(ii) The
Certificate Registrar shall register the transfer of a Restricted Certificate
if
the requested transfer is being made to an “accredited investor” under Rule
501(a)(1), (2), (3) or (7) under the Act, or to any Person all of the equity
owners in which are such accredited investors, by a transferor who furnishes
to
the Trustee a letter of the transferee substantially in the form of Exhibit
G
hereto.
(d) No
transfer of a Grantor Trust Certificate or a Group I Senior Certificate will
be
registered unless the Trustee, the Certificate Registrar and the Depositor
receive a representation as set forth in Exhibit H to the effect either (A)
that
such transferee is not, and is not acting for, on behalf of or with any assets
of, an employee benefit plan or other arrangement subject to Title I of ERISA
or
plan subject to Section 4975 of the Code, or (B)(I) solely in the case of a
Grantor Trust Certificate, until the termination of the applicable Deferred
Interest Cap Agreement, the acquisition and holding of the Grantor Trust
Certificate will not constitute or result in a non-exempt prohibited transaction
under Title I of ERISA or Section 4975 of the Code, (II) solely in the case
of a
Group I Senior Certificate, until the termination of the Swap Agreement, the
acquisition and holding of the Group I Senior Certificate will not constitute
or
result in a non-exempt prohibited transaction under Title I of ERISA or Section
4975 of the Code.
No
Transfer of an ERISA-Restricted Certificate or a Class R Certificate will be
registered unless the Trustee, the Certificate Registrar and the Depositor
receive (A) a representation as set forth in Exhibit D-1 for Class R
Certificates or Exhibit H for ERISA-Restricted Certificates to the effect that
such transferee is not an employee benefit plan or other arrangement subject
to
Title I of ERISA, a plan subject to Section 4975 of the Code or a plan subject
to any provisions under any federal, state, local, non-U.S. or other laws or
regulations that are substantively similar to the foregoing provisions of ERISA
or the Code (“Similar Law”) (collectively, a “Plan”), and is not directly or
indirectly acquiring the Class R Certificate for, on behalf of, or with any
assets of any such Plan, or (B) solely in the case of an ERISA-Restricted
Certificate (I) a representation as set forth in Exhibit H for ERISA-Restricted
Certificates that, if the Certificate has been the subject of an
ERISA-Qualifying Underwriting, such transferee is an insurance company that
is
acquiring the Certificate with assets contained in an “insurance company general
account,” as defined in Section V(e) of Prohibited Transaction Class Exemption
(“PTCE”) 95-60, and the acquisition and holding of the Certificate are covered
and exempt under Sections I and III of PTCE 95-60, or (II) solely in the case
of
an ERISA-Restricted Certificate that is a Definitive Certificate, an Opinion
of
Counsel satisfactory to the Trustee, the Certificate Registrar and the
Depositor, and upon which the Trustee, the Certificate Registrar and the
Depositor shall be entitled to rely, to the effect that the acquisition and
holding of such Certificate will not constitute or result in a nonexempt
prohibited transaction under ERISA or the Code, or a violation of Similar Law,
and will not subject the Trustee, the Certificate Registrar, the Master
Servicer, any Servicer or the Depositor to any obligation in addition to those
expressly undertaken in this Agreement, which Opinion of Counsel shall not
be an
expense of the Trustee, the Certificate Registrar, the Master Servicer, any
Servicer or the Depositor.
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The
representations set forth in the preceding paragraphs applicable to Exchange
Certificates shall also apply to Exchangeable Certificates. Except in the case
of Definitive Certificates, the representations set forth in the preceding
paragraphs, other than clause (B)(II) in the immediately preceding paragraph,
shall be deemed to have been made to the Trustee, the Certificate Registrar
and
the Depositor by the transferee’s acceptance of a Grantor Trust Certificate,
Group I Senior Certificate, ERISA-Restricted Certificate or Class R Certificate
(or the acceptance by a Certificate Owner of the beneficial interest in any
Class of Grantor Trust Certificate, Group I Senior Certificate, ERISA Restricted
Certificate or Class R Certificate). The Trustee, the Certificate Registrar
and
the Depositor shall not have any obligation to monitor transfers of Book-Entry
Certificates or Restricted Global Securities that are Grantor Trust
Certificates, Group I Senior Certificates, ERISA-Restricted Certificates or
Class R Certificates or any liability for transfers of such Certificates in
violation of the transfer restrictions.
Notwithstanding
any other provision herein to the contrary, any purported transfer of a Grantor
Trust Certificate, Group I Senior Certificate, ERISA-Restricted Certificate
or
Class R Certificate to or on behalf of a Plan without the delivery to the
Trustee, the Certificate Registrar and the Depositor of a representation or
an
Opinion of Counsel satisfactory to the Trustee, the Certificate Registrar and
the Depositor as described above shall be void and of no effect and the next
preceding permitted beneficial owner will be treated as the beneficial owner
of
that Certificate, retroactive to the date of transfer to the purported
beneficial owner. The Trustee, the Certificate Registrar and the Depositor
shall
not have any liability to any Person for any registration or transfer of any
Grantor Trust Certificate, Group I Senior Certificate, ERISA Restricted
Certificate or Class R Certificate that is in fact not permitted by this Section
3.03(d) and the Trustee, the Certificate Registrar and the Depositor shall
not
have any liability for making any payments due on such Certificate to the Holder
thereof or taking any other action with respect to such Holder under the
provisions of this Agreement so long as the transfer was registered by the
Certificate Registrar in accordance with the foregoing requirements. The
Trustee, the Certificate Registrar and the Depositor shall be entitled, but
not
obligated, to recover from any Holder of any Grantor Trust Certificate, Group
I
Senior Certificate, ERISA Restricted Certificate or Class R Certificate that
was
in fact a Plan and that held such Certificate in violation of this Section
3.03(d) all payments made on such Grantor Trust Certificate, Group I Senior
Certificate, ERISA Restricted Certificate or Class R Certificate at and after
the time it commenced such holding. Any such payments so recovered shall be
paid
and delivered to the last preceding Holder of such Certificate that is not
a
Plan.
(e) As
a
condition of the registration of transfer or exchange of any Certificate, the
Certificate Registrar may require the certified taxpayer identification number
of the owner of the Certificate and the payment of a sum sufficient to cover
any
tax or other governmental charge imposed in connection therewith; provided,
however, that the Certificate Registrar shall have no obligation to require
such
payment or to determine whether or not any such tax or charge may be applicable.
No service charge shall be made to the Certificateholder for any registration,
transfer or exchange of a Certificate, except as provided in the Exchange Trust
Agreement.
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(f) Notwithstanding
anything to the contrary contained herein, no Residual Certificate may be owned,
pledged or transferred, directly or indirectly, by or to (i) a Disqualified
Organization or (ii) an individual, corporation or partnership or other person
unless, in the case of clause (ii), such person is (A) not a Non-U.S. Person
or
(B) is a Non-U.S. Person that holds a Residual Certificate in connection with
the conduct of a trade or business within the United States and has furnished
the transferor and the Trustee with an effective Internal Revenue Service Form
W-8ECI or successor form at the time and in the manner required by the Code
(any
such person who is not covered by clause (A) or (B) above is referred to herein
as a “Non-permitted Foreign Holder”).
Prior
to
and as a condition of the registration of any transfer, sale or other
disposition of a Residual Certificate, the proposed transferee shall deliver
to
the Trustee an affidavit in substantially the form attached hereto as Exhibit
D-1 representing and warranting, among other things, that such transferee is
neither a Disqualified Organization, an agent or nominee acting on behalf of
a
Disqualified Organization, nor a Non-permitted Foreign Holder (any such
transferee, a “Permitted Transferee”), and the proposed transferor shall deliver
to the Trustee an affidavit in substantially the form attached hereto as Exhibit
D-2. In addition, the Trustee may (but shall have no obligation to) require,
prior to and as a condition of any such transfer, the delivery by the proposed
transferee of an Opinion of Counsel, addressed to the Depositor, the Master
Servicer, any NIMS Insurer and the Trustee satisfactory in form and substance
to
the Depositor, that such proposed transferee or, if the proposed transferee
is
an agent or nominee, the proposed beneficial owner, is not a Disqualified
Organization, agent or nominee thereof, or a Non-permitted Foreign Holder.
Notwithstanding the registration in the Certificate Register of any transfer,
sale, or other disposition of a Residual Certificate to a Disqualified
Organization, an agent or nominee thereof, or Non-permitted Foreign Holder,
such
registration shall be deemed to be of no legal force or effect whatsoever and
such Disqualified Organization, agent or nominee thereof, or Non-permitted
Foreign Holder shall not be deemed to be a Certificateholder for any purpose
hereunder, including, but not limited to, the receipt of distributions on such
Residual Certificate. The Trustee shall not be under any liability to any person
for any registration or transfer of a Residual Certificate to a Disqualified
Organization, agent or nominee thereof or Non-permitted Foreign Holder or for
the maturity of any payments due on such Residual Certificate to the Holder
thereof or for taking any other action with respect to such Holder under the
provisions of the Agreement, so long as the transfer was effected in accordance
with this Section 3.03(f), unless a Responsible Officer of the Trustee shall
have actual knowledge at the time of such transfer or the time of such payment
or other action that the transferee is a Disqualified Organization, or an agent
or nominee thereof, or Non-permitted Foreign Holder. The Trustee shall be
entitled, but not obligated, to recover from any Holder of a Residual
Certificate that was a Disqualified Organization, agent or nominee thereof,
or
Non-permitted Foreign Holder at the time it became a Holder or any subsequent
time it became a Disqualified Organization, agent or nominee thereof, or
Non-permitted Foreign Holder, all payments made on such Residual Certificate
at
and after either such times (and all costs and expenses, including but not
limited to attorneys’ fees, incurred in connection therewith). Any payment (not
including any such costs and expenses) so recovered by the Trustee shall be
paid
and delivered to the last preceding Holder of such Residual
Certificate.
If
any
purported transferee shall become a registered Holder of a Residual Certificate
in violation of the provisions of this Section 3.03(f), then upon receipt of
written notice to the Trustee that the registration of transfer of such Residual
Certificate was not in fact permitted by this Section 3.03(f), the last
preceding Permitted Transferee shall be restored to all rights as Holder thereof
retroactive to the date of such registration of transfer of such Residual
Certificate. The Trustee shall be under no liability to any Person for any
registration of transfer of a Residual Certificate that is in fact not permitted
by this Section 3.03(f), for making any payment due on such Certificate to
the
registered Holder thereof or for taking any other action with respect to such
Holder under the provisions of this Agreement so long as the transfer was
registered upon receipt of the affidavit described in the preceding paragraph
of
this Section 3.03(f).
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(g) Each
Holder or Certificate Owner of a Restricted Certificate, ERISA-Restricted
Certificate, QIB-Restricted Certificate or Residual Certificate, or an interest
therein, by such Holder’s or Owner’s acceptance thereof, shall be deemed for all
purposes to have consented to the provisions of this section.
(h) Notwithstanding
any provision to the contrary herein, so long as a Global Security representing
any Privately Offered Certificate remains outstanding and is held by or on
behalf of DTC, transfers of a Global Security representing any such
Certificates, in whole or in part, shall only be made in accordance with Section
3.01 and this Section 3.03(h).
(i) Subject
to clauses (ii) and (iii) of this Section 3.03(h), transfers of a Global
Security representing any Privately Offered Certificate shall be limited to
transfers of such Global Security, in whole or in part, to nominees of DTC
or to
a successor of DTC or such successor’s nominee.
(ii) Restricted
Global Security to Regulation S Global Security. If a holder of a beneficial
interest in a Restricted Global Security deposited with or on behalf of DTC
wishes at any time to exchange its interest in such Restricted Global Security
for an interest in a Regulation S Global Security, or to transfer its interest
in such Restricted Global Security to a Person who wishes to take delivery
thereof in the form of an interest in a Regulation S Global Security, such
holder, provided such holder is not a U.S. person, may, subject to the rules
and
procedures of DTC, exchange or cause the exchange of such interest for an
equivalent beneficial interest in the Regulation S Global Security. Upon receipt
by the Trustee, as Certificate Registrar, of (I) instructions from DTC directing
the Trustee, as Certificate Registrar, to be credited a beneficial interest
in a
Regulation S Global Security in an amount equal to the beneficial interest
in
such Restricted Global Security to be exchanged but not less than the minimum
denomination applicable to such holder’s Certificates held through a Regulation
S Global Security, (II) a written order given in accordance with DTC’s
procedures containing information regarding the participant account of DTC
and,
in the case of a transfer pursuant to and in accordance with Regulation S,
the
Euroclear or Clearstream account to be credited with such increase and (III)
a
certificate in the form of Exhibit V-1 hereto given by the holder of such
beneficial interest stating that the exchange or transfer of such interest
has
been made in compliance with the transfer restrictions applicable to the Global
Securities, including that the holder is not a U.S. person, and pursuant to
and
in accordance with Regulation S, the Trustee, as Certificate Registrar, shall
reduce the principal amount of the Restricted Global Security and increase
the
principal amount of the Regulation S Global Security by the aggregate principal
amount of the beneficial interest in the Restricted Global Security to be
exchanged, and shall instruct Euroclear or Clearstream, as applicable,
concurrently with such reduction, to credit or cause to be credited to the
account of the Person specified in such instructions a beneficial interest
in
the Regulation S Global Security equal to the reduction in the principal amount
of the Restricted Global Security.
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(iii) Regulation
S Global Security to Restricted Global Security. If a holder of a beneficial
interest in a Regulation S Global Security deposited with or on behalf of DTC
wishes at any time to transfer its interest in such Regulation S Global Security
to a Person who wishes to take delivery thereof in the form of an interest
in a
Restricted Global Security, such holder may, subject to the rules and procedures
of DTC, exchange or cause the exchange of such interest for an equivalent
beneficial interest in a Restricted Global Security. Upon receipt by the
Trustee, as Certificate Registrar, of (I) instructions from DTC directing the
Trustee, as Certificate Registrar, to cause to be credited a beneficial interest
in a Restricted Global Security in an amount equal to the beneficial interest
in
such Regulation S Global Security to be exchanged but not less than the minimum
denomination applicable to such holder’s Certificates held through a Restricted
Global Security, to be exchanged, such instructions to contain information
regarding the participant account with DTC to be credited with such increase,
and (II) a certificate in the form of Exhibit V-2 hereto given by the holder
of
such beneficial interest and stating, among other things, that the Person
transferring such interest in such Regulation S Global Security reasonably
believes that the Person acquiring such interest in a Restricted Global Security
is a QIB, is obtaining such beneficial interest in a transaction meeting the
requirements of Rule 144A under the Act and in accordance with any applicable
securities laws of any State of the United States or any other jurisdiction,
then the Trustee, as Certificate Registrar, will reduce the principal amount
of
the Regulation S Global Security and increase the principal amount of the
Restricted Global Security by the aggregate principal amount of the beneficial
interest in the Regulation S Global Security to be transferred and the Trustee,
as Certificate Registrar, shall instruct DTC, concurrently with such reduction,
to credit or cause to be credited to the account of the Person specified in
such
instructions a beneficial interest in the Restricted Global Security equal
to
the reduction in the principal amount of the Regulation S Global
Security.
(iv) Other
Exchanges. In the event that a Global Security is exchanged for Certificates
in
definitive registered form without interest coupons, pursuant to Section 3.09(c)
hereof, such Certificates may be exchanged for one another only in accordance
with such procedures as are substantially consistent with the provisions above
(including certification requirements intended to insure that such transfers
comply with Rule 144A, comply with Rule 501(a)(1), (2), (3) or (7) or are to
non-U.S. persons in compliance with Regulation S under the Act, as the case
may
be), and as may be from time to time adopted by the Trustee.
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(v) Restrictions
on U.S. Transfers. Transfers of interests in the Regulation S Global Security
to
U.S. persons (as defined in Regulation S) shall be limited to transfers made
pursuant to the provisions of Section 3.03(h)(iii).
Section
3.04. Cancellation
of Certificates.
Any
Certificate surrendered for registration of transfer or exchange shall be
cancelled and retained in accordance with normal retention policies with respect
to cancelled certificates maintained by the Trustee or the Certificate
Registrar.
Section
3.05. Replacement
of Certificates.
If
(i)
any Certificate is mutilated and is surrendered to the Trustee or any
Authenticating Agent or (ii) the Trustee or any Authenticating Agent receives
evidence to its satisfaction of the destruction, loss or theft of any
Certificate, and there is delivered to any NIMS Insurer and the Trustee or
the
Authenticating Agent such security or indemnity as may be required by them
to
save each of them harmless, then, in the absence of notice to the Depositor
and
any Authenticating Agent that such destroyed, lost or stolen Certificate has
been acquired by a bona fide purchaser, the Trustee shall execute and the
Trustee or any Authenticating Agent shall authenticate and deliver, in exchange
for or in lieu of any such mutilated, destroyed, lost or stolen Certificate,
a
new Certificate of like tenor and Certificate Principal Amount. Upon the
issuance of any new Certificate under this Section 3.05, the Trustee and
Authenticating Agent 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 or the
Authenticating Agent) connected therewith. Any replacement Certificate issued
pursuant to this Section 3.05 shall constitute complete and indefeasible
evidence of ownership in the applicable Trust Fund, as if originally issued,
whether or not the lost, stolen or destroyed Certificate shall be found at
any
time.
Section
3.06. Persons
Deemed Owners.
Subject
to the provisions of Section 3.09 with respect to Book Entry Certificates,
the
Depositor, the Master Servicer, the Trustee, any NIMS Insurer, the Certificate
Registrar and any agent of any of them may treat the Person in whose name any
Certificate is registered upon the books of the Certificate Registrar as the
owner of such Certificate for the purpose of receiving distributions pursuant
to
Sections 5.01 and 5.02 and for all other purposes whatsoever, and neither the
Depositor, the Master Servicer, the Trustee, any NIMS Insurer, the Certificate
Registrar nor any agent of any of them shall be affected by notice to the
contrary.
Section
3.07. Temporary
Certificates.
(a) Pending
the preparation of Definitive Certificates, upon the order of the Depositor,
the
Trustee shall execute and shall authenticate and deliver temporary Certificates
that are printed, lithographed, typewritten, mimeographed or otherwise produced,
in any authorized denomination, substantially of the tenor of the Definitive
Certificates in lieu of which they are issued and with such variations as the
authorized officers executing such Certificates may determine, as evidenced
by
their execution of such Certificates.
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(b) If
temporary Certificates are issued, the Depositor will cause Definitive
Certificates to be prepared without unreasonable delay. After the preparation
of
Definitive Certificates, the temporary Certificates shall be exchangeable for
Definitive Certificates upon surrender of the temporary Certificates at the
office or agency of the Trustee without charge to the Holder. Upon surrender
for
cancellation of any one or more temporary Certificates, the Trustee shall
execute and authenticate and deliver in exchange therefor a like aggregate
Certificate Principal Amount of Definitive Certificates of the same Class in
the
authorized denominations. Until so exchanged, the temporary Certificates shall
in all respects be entitled to the same benefits under this Agreement as
Definitive Certificates of the same Class.
Section
3.08. Appointment
of Paying Agent.
(a) The
Trustee hereby appoints itself as Paying Agent. The Trustee may appoint a
successor Paying Agent acceptable to the NIMS Insurer, for the purpose of making
distributions to Certificateholders hereunder. The Trustee shall cause such
Paying Agent (if other than the Trustee) to execute and deliver to the Trustee
an instrument in which such Paying Agent shall agree with the Trustee that
such
Paying Agent will hold all sums held by it for the payment to Certificateholders
in an Eligible Account in trust for the benefit of the Certificateholders
entitled thereto until such sums shall be paid to the Certificateholders. All
funds remitted by the Trustee to any such Paying Agent for the purpose of making
distributions shall be paid to Certificateholders on each Distribution Date
and
any amounts not so paid shall be returned on such Distribution Date to the
Trustee. If the Paying Agent is not the Trustee, the Trustee shall cause to
be
remitted to the Paying Agent on or before the Business Day prior to each
Distribution Date, by wire transfer in immediately available funds, the funds
to
be distributed on such Distribution Date.
(b) Any
Paying Agent shall be either a bank or trust company or otherwise authorized
under law to exercise corporate trust powers. A Paying Agent shall comply with
its reporting obligations under Regulation AB with respect to the Trust Fund
in
form and substance similar to those of the Trustee pursuant to Section
6.20(d)(iv) and Section 9.25, and the related assessment of compliance and
attestation shall cover, at a minimum, the matters indicated as obligations
with
respect to the Paying Agent on Exhibit R attached hereto; provided that if
the
Trustee is the Paying Agent, any reporting obligations under Regulation AB
specific to the Paying Agent shall be undertaken by the Trustee in the course
of
its own reporting and not separately, as further specified in Section
6.20(d)(iv) and Section 9.25. In addition, the Paying Agent (if other than
the
Trustee) shall notify the Sponsor, the Master Servicer and the Depositor within
five (5) calendar days of knowledge thereof (i) of any legal proceedings pending
against the Paying Agent of the type described in Item 1117 (§ 229.1117) of
Regulation AB, (ii) any merger, consolidation or sale of substantially all
of
the assets of the Paying Agent and (iii) if the Paying Agent shall become (but
only to the extent not previously disclosed) at any time an Affiliate of any
of
the parties listed on Exhibit S hereto or any of their Affiliates.
(c) Any
Paying Agent agrees to indemnify the Depositor, the Trustee (if other than
the
Paying Agent) and the Master Servicer, and each of their respective directors,
officers, employees and agents and the Trust Fund and hold each of them harmless
from and against any losses, damages, penalties, fines, forfeitures, legal
fees
and expenses and related costs, judgments, and any other costs, fees and
expenses that any of them may sustain arising out of or based upon the failure
by such Paying Agent to deliver any information, report or certification when
and as required under Section 6.20 and Section 9.25(a), provided, however,
that
this sentence shall not apply if the Paying Agent is the Trustee. This
indemnification shall survive the termination of this Agreement or the
termination of such Paying Agent hereunder.
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Section
3.09. Book
Entry Certificates.
(a) Each
Class of Book Entry Certificates, upon original issuance, shall be issued in
the
form of one or more typewritten Certificates representing the Book Entry
Certificates. The Book Entry Certificates shall initially be registered on
the
Certificate Register in the name of the nominee of the Clearing Agency, and
no
Certificate Owner will receive a Definitive Certificate representing such
Certificate Owner’s interest in the Book Entry Certificates, except as provided
in Section 3.09(c). Unless Definitive Certificates have been issued to
Certificate Owners of Book Entry Certificates pursuant to Section
3.09(c):
(i) the
provisions of this Section 3.09 shall be in full force and effect;
(ii) the
Depositor, the Master Servicer, the Paying Agent, the Registrar and the Trustee
may deal with the Clearing Agency for all purposes (including the making of
distributions on the Book Entry Certificates) as the authorized representatives
of the Certificate Owners and the Clearing Agency shall be responsible for
crediting the amount of such distributions to the accounts of such Persons
entitled thereto, in accordance with the Clearing Agency’s normal
procedures;
(iii) to
the
extent that the provisions of this Section 3.09 conflict with any other
provisions of this Agreement, the provisions of this Section 3.09 shall control;
and
(iv) the
rights of Certificate Owners shall be exercised only through the Clearing Agency
and the Clearing Agency Participants and shall be limited to those established
by law and agreements between such Certificate Owners and the Clearing Agency
and/or the Clearing Agency Participants. Unless and until Definitive
Certificates are issued pursuant to Section 3.09(c), the initial Clearing Agency
will make book entry transfers among the Clearing Agency Participants and
receive and transmit distributions of principal of and interest on the Book
Entry Certificates to such Clearing Agency Participants.
(b) Whenever
notice or other communication to the Certificateholders is required under this
Agreement, unless and until Definitive Certificates shall have been issued
to
Certificate Owners pursuant to Section 3.09(c), the Trustee shall give all
such
notices and communications specified herein to be given to Holders of the Book
Entry Certificates to the Clearing Agency.
(c) If
(i)
(A) the Depositor advises the Trustee in writing that the Clearing Agency is
no
longer willing or able to discharge properly its responsibilities with respect
to the Book-Entry Certificates, and (B) the Trustee or the Depositor is unable
to locate a qualified successor, or (ii) after the occurrence of an Event of
Default, Certificate Owners representing beneficial interests aggregating not
less than 50% of the Class Principal Amount of a Class of Book Entry
Certificates identified as such to the Trustee by an Officer’s Certificate from
the Clearing Agency advise the Trustee and the Clearing Agency through the
Clearing Agency Participants in writing that the continuation of a book entry
system through the Clearing Agency is no longer in the best interests of the
Certificate Owners of a Class of Book Entry Certificates, the Trustee shall
notify or cause the Certificate Registrar to notify the Clearing Agency to
effect notification to all Certificate Owners, through the Clearing Agency,
of
the occurrence of any such event and of the availability of Definitive
Certificates to Certificate Owners requesting the same. Upon surrender to the
Trustee of the Book Entry Certificates by the Clearing Agency, accompanied
by
registration instructions from the Clearing Agency for registration, the Trustee
shall issue the Definitive Certificates. Neither the Depositor nor the Trustee
shall be liable for any delay in delivery of such instructions and may
conclusively rely on, and shall be protected in relying on, such instructions.
Upon the issuance of Definitive Certificates all references herein to
obligations imposed upon or to be performed by the Clearing Agency 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.
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Section
3.10. Deposit
of Underlying REMIC Certificates under the Exchange Trust
Agreement.
The
Underlying REMIC Certificates shall be issued in uncertificated form to the
Underwriter and transferred by the Underwriter to the Exchange Trustee to be
held in trust pursuant to terms of the Exchange Trust Agreement.
ARTICLE
IV.
ADMINISTRATION
OF THE TRUST FUND
Section
4.01. Collection
Account.
(a) On
the
Closing Date, the Master Servicer shall open and shall thereafter maintain
a
segregated account held in trust (the “Collection Account”), entitled “Aurora
Loan Services LLC, as Master Servicer, in trust for the benefit of the Holders
of Xxxxxx XS Trust Mortgage Pass-Through Certificates, Series 2007-15N.” The
Collection Account shall relate solely to the Certificates issued by the Trust
Fund hereunder, and funds in such Collection Account shall not be commingled
with any other monies.
(b) The
Collection Account shall be an Eligible Account. If an existing Collection
Account ceases to be an Eligible Account, the Master Servicer shall establish
a
new Collection Account that is an Eligible Account within 15 days and transfer
all funds and investment property on deposit in such existing Collection Account
into such new Collection Account.
(c) The
Master Servicer shall give to the Trustee and any NIMS Insurer prior written
notice of the name and address of the depository institution at which the
Collection Account is maintained and the account number of such Collection
Account. The Master Servicer shall take such actions as are necessary to cause
the depository institution holding the Collection Account to hold such account
in the name of the Master Servicer under this Agreement. No later than 2:00
p.m.
New York City time on each Deposit Date, the entire amount on deposit in the
Collection Account (subject to permitted withdrawals set forth in Section 4.02),
other than amounts not included in the Total Distribution Amount for such
Distribution Date, shall be remitted to the Trustee for deposit into the
Certificate Account by wire transfer in immediately available funds. The Master
Servicer, at its option (but with prior notice to the Trustee), may choose
to
make daily remittances from the Collection Account to the Trustee for deposit
into the Certificate Account.
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(d) The
Master Servicer shall deposit or cause to be deposited into the Collection
Account, no later than the second Business Day following the Closing Date,
any
amounts received with respect to the Mortgage Loans representing Scheduled
Payments on the Mortgage Loans due after the Cut-off Date and unscheduled
payments received on or after the Cut-off Date and on or before the Closing
Date. Thereafter, the Master Servicer shall deposit or cause to be deposited
in
the Collection Account on the earlier of the applicable Deposit Date and two
Business Days following receipt thereof, the following amounts received or
payments made by it (other than in respect of principal of and interest on
the
Mortgage Loans due on or before the Cut-off Date):
(i) all
payments on account of principal, including Principal Prepayments, late
collections, and any Prepayment Premiums, on the Mortgage Loans;
(ii) all
payments on account of interest on the Mortgage Loans, in all cases, net of
the
General Servicing Fee or Servicing Fee, as applicable, with respect to each
such
Mortgage Loan, but only to the extent of the amount permitted to be withdrawn
or
withheld from the Collection Account in accordance with Sections 5.04 and
9.21;
(iii) any
unscheduled payment or other recovery with respect to a Mortgage Loan not
otherwise specified in this paragraph (d), including any Subsequent Recovery,
all Net Liquidation Proceeds with respect to the Mortgage Loans and REO
Property, and all amounts received in connection with the operation of any
REO
Property, net of (x) any unpaid General Servicing Fees or Servicing Fees, as
applicable, with respect to such Mortgage Loans (but only to the extent of
the
amount permitted to be withdrawn or withheld from the Collection Account in
accordance with Sections 5.04 and 9.21) and (y) any amounts reimbursable to
the
applicable Servicer with respect to such Mortgage Loan under the related
Servicing Agreement and retained by such Servicer;
(iv) all
Insurance Proceeds;
(v) all
Advances made by the Master Servicer or the applicable Servicer pursuant to
Section 5.04 or the related Servicing Agreement;
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(vi) all
amounts paid by Aurora or the Master Servicer with respect to Prepayment
Interest Shortfalls; and
(vii) the
Purchase Price, FPD Purchase Price or EPD Purchase Price (including any FPD
Premium or EPD Premium) of any Mortgage Loan repurchased by the Depositor,
the
Seller, the Master Servicer or any other Person, and any Substitution Amount
related to any Qualifying Substitute Mortgage Loan and any purchase price paid
by any NIMS Insurer for the purchase of any Distressed Mortgage Loan under
Section 7.04.
(e) Funds
in
the Collection Account may be invested in Eligible Investments selected by
and
at the written direction of the Master Servicer, which shall mature not later
than one Business Day prior to the Deposit Date (except that if such Eligible
Investment is an obligation of the Trustee, then such Eligible Investment shall
mature not later than such applicable Deposit Date) and any such Eligible
Investment shall not be sold or disposed of prior to its maturity. All such
Eligible Investments shall be made in the name of the Master Servicer in trust
for the benefit of the Trustee and the Holders of Xxxxxx XS Trust Mortgage
Pass-Through Certificates, Series 2007-15N. All income and gain realized from
any Eligible Investment shall be for the benefit of the Master Servicer and
shall be subject to its withdrawal or order from time to time and shall not
be
part of the Trust Fund. The amount of any losses incurred in respect of any
such
investments shall be deposited in such Collection Account by the Master Servicer
out of its own funds, without any right of reimbursement therefor, immediately
as realized. The foregoing requirements for deposit in the Collection Account
are exclusive, it being understood and agreed that, without limiting the
generality of the foregoing, payments of interest on funds in the Collection
Account and payments in the nature of late payment charges, assumption fees,
prepayment penalties with respect to mortgages for which the Seller does not
own
the servicing rights, and other incidental fees and charges relating to the
Mortgage Loans (other than Prepayment Premiums) need not be deposited by the
Master Servicer in the Collection Account and may be retained by the Master
Servicer or the applicable Servicer as additional servicing compensation. If
the
Master Servicer deposits in the Collection Account any amount not required
to be
deposited therein, it may at any time withdraw such amount from such Collection
Account.
Section
4.02. Application
of Funds in the Collection Account.
(a) The
Master Servicer may, from time to time, make, or cause to be made, withdrawals
from the Collection Account for the following purposes:
(i) to
reimburse itself or any Servicer for Advances or Servicing Advances made by
it
or by such Servicer pursuant to Section 5.04 or the applicable Servicing
Agreement; such right to reimbursement pursuant to this sub-clause (i) is
limited to amounts received on or in respect of a particular Mortgage Loan
(including, for this purpose, Liquidation Proceeds and amounts representing
Insurance Proceeds with respect to the property subject to the related Mortgage)
which represent late recoveries (net of the General Servicing Fee or the
Servicing Fee, as applicable) of payments of principal or interest respecting
which any such Advance was made, it being understood, in the case of any such
reimbursement, that the Master Servicer’s or Servicer’s right thereto shall be
prior to the rights of the Certificateholders;
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(ii) to
reimburse itself or any Servicer, following a final liquidation of a Mortgage
Loan (except as otherwise provided in the applicable Servicing Agreement) for
any previously unreimbursed Advances or Servicing Advances made by it or by
such
Servicer (A) that it or such Servicer determines in good faith will not be
recoverable from amounts representing late recoveries of payments of principal
or interest respecting the particular Mortgage Loan as to which such Advance
or
Servicing Advance was made or from Liquidation Proceeds or Insurance Proceeds
with respect to such Mortgage Loan and/or (B) to the extent that such
unreimbursed Advances or Servicing Advances exceed the related Liquidation
Proceeds or Insurance Proceeds, it being understood, in the case of each such
reimbursement, that such Master Servicer’s or Servicer’s right thereto shall be
prior to the rights of the Certificateholders;
(iii) to
reimburse itself or any Servicer from Liquidation Proceeds for Liquidation
Expenses and for amounts expended by it pursuant to Sections 9.20 and 9.22(c)
or
the applicable Servicing Agreement in good faith in connection with the
restoration of damaged property and, to the extent that Liquidation Proceeds
after such reimbursement exceed the unpaid principal balance of the related
Mortgage Loan, together with accrued and unpaid interest thereon at the
applicable Mortgage Rate less the General Servicing Fee Rate or the Servicing
Fee Rate, as applicable, for such Mortgage Loan to the Due Date next succeeding
the date of its receipt of such Liquidation Proceeds, to pay to itself out
of
such excess the amount of any unpaid assumption fees, late payment charges
or
other Mortgagor charges on the related Mortgage Loan and to retain any excess
remaining thereafter as additional servicing compensation, it being understood,
in the case of any such reimbursement or payment, that such Master Servicer’s or
Servicer’s right thereto shall be prior to the rights of the
Certificateholders;
(iv) in
the
event the Master Servicer has elected not to retain the General Servicing Fee
(including late collections of interest on such Mortgage Loan, or interest
portions of Insurance Proceeds, condemnation Proceeds or Liquidation Proceeds),
to pay to itself the General Servicing Fee from all such Mortgagor payments
on
account of interest or other such recovery for interest with respect to that
Mortgage Loan;
(v) to
reimburse itself or any Servicer for expenses incurred by and recoverable by
or
reimbursable to it or such Servicer pursuant to Sections 9.04, 9.05, 9.06,
9.07(a), 9.16, 9.30 or 11.15 or pursuant to the applicable Servicing
Agreement;
(vi) to
pay to
the Depositor, the Seller or the Transferor, as applicable, with respect to
each
Mortgage Loan or REO Property acquired in respect thereof that has been
purchased pursuant to this Agreement, all amounts received thereon and not
distributed on the date on which the related repurchase was effected, and to
pay
to the applicable Person any Advances and Servicing Advances to the extent
specified in the definition of Purchase Price (or FPD Purchase Price in the
case
of a First Payment Default Loan or EPD Purchase Price in the case of an Early
Payment Default Loan);
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(vii) subject
to Section 5.05, to pay to itself income earned on the investment of funds
deposited in the Collection Account;
(viii) to
make
payments to the Trustee on each Deposit Date for deposit into the Certificate
Account in the amount provided in Section 4.04;
(ix) to
make
payment to itself, the Trustee and others pursuant to any other provision of
this Agreement;
(x) to
withdraw funds deposited in error in the Collection Account;
(xi) to
clear
and terminate the Collection Account pursuant to Section 7.02;
(xii) to
reimburse the Trustee and a successor master servicer (solely in its capacity
as
successor master servicer), for any fee or advance occasioned by a termination
of the Master Servicer, and the assumption of such duties by the Trustee or
a
successor master servicer appointed by the Trustee pursuant to Section 6.14,
in
each case to the extent not reimbursed by the terminated Master Servicer, it
being understood, in the case of any such reimbursement or payment, that the
right of the Master Servicer or the Trustee thereto shall be prior to the rights
of the Certificateholders; and
(xiii) to
reimburse any Servicer for such amounts as are due thereto under the applicable
Servicing Agreement and have not been retained by or paid to such Servicer,
to
the extent provided in such Servicing Agreement.
If
provided in its applicable Servicing Agreement, a Servicer shall be entitled
to
retain as additional servicing compensation any Prepayment Interest Excess
(to
the extent not offset by Prepayment Interest Shortfalls).
In
the
event that the Master Servicer fails on any Deposit Date to remit to the Trustee
any amounts required to be so remitted to the Trustee pursuant to sub-clause
(viii) by such date, the Master Servicer shall pay the Trustee, for the account
of the Trustee, interest calculated at the “prime rate” (as published in the
“Money Rates” section of The Wall Street Journal) on such amounts not timely
remitted for the period from and including that Deposit Date to but not
including the related Distribution Date. The Master Servicer shall only be
required to pay the Trustee interest for the actual number of days such amounts
are not timely remitted (e.g., one day’s interest, if such amounts are remitted
one day after the Deposit Date).
In
connection with withdrawals pursuant to sub-clauses (i), (ii), (iii), and (vi)
above, the Master Servicer’s, any Servicer’s or such other Person’s entitlement
thereto is limited to collections or other recoveries on the related Mortgage
Loan. The Master Servicer shall therefore keep and maintain a separate
accounting for each Mortgage Loan it master services for the purpose of
justifying any withdrawal from the Collection Account it maintains pursuant
to
such sub-clause (i), (ii), (iii) and (vi).
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Any
withdrawals described in this section shall be allocated and limited to
collections or other recoveries on the related Mortgage Pool and shall be
accounted for in such manner.
(b) The
Trustee shall afford the NIMS Insurer upon reasonable notice, during normal
business hours, access to all records maintained by the Trustee in respect
of
its duties hereunder and access to officers of the Trustee responsible for
performing such duties. The Trustee shall cooperate fully with the NIMS Insurer
and shall make available to the NIMS Insurer for review and copying at the
expense of the NIMS Insurer such books, documents or records as may be requested
with respect to the Trustee’s duties hereunder. The NIMS Insurer shall not have
any responsibility or liability for any action or failure to act by the Trustee
and is not obligated to supervise the performance of the Trustee under this
Agreement or otherwise. The Trustee shall also afford the NIMS Insurer, upon
reasonable notice, during normal business hours, access to the Mortgage Files
and shall cause the Master Servicer and the Servicer to provide such access
to
the Mortgage Files.
Section
4.03. Reports
to Certificateholders.
(a) On
each
Distribution Date, the Trustee shall prepare (to the extent based on information
provided by the Master Servicer, the Cap Providers or the Swap Counterparty,
based solely on such information) and shall make available to the
Certificateholders, the Swap Counterparty, the Certificate Insurer and any
NIMS
Insurer a written report setting forth the following information by Mortgage
Pool (on the basis of Mortgage Loan level information obtained from the
Servicers and in the case of clauses (xx) and (xxii) through (xxiv) below,
based
on information provided by the Trustee (or the Paying Agent on behalf of the
Trustee):
(i) the
aggregate amount of the distribution to be made on such Distribution Date to
the
Holders of each Class of LIBOR Certificates and Grantor Trust Certificates,
other than any Class of Notional Certificates, allocable to principal on the
Mortgage Loans, including any Subsequent Recovery, Liquidation Proceeds and
Insurance Proceeds, stating separately the amount attributable to scheduled
principal payments and unscheduled payments in the nature of principal in each
Mortgage Pool;
(ii) the
aggregate amount of the distribution to be made on such Distribution Date to
the
Holders of each Class of LIBOR Certificates and Grantor Trust Certificates
allocable to interest and the calculation thereof;
(iii) the
amount, if any, of any distributions to the Holders of the Class C-I, Class
C-II, Class AP-I, Class 3-AP, Class 4-AP, Class X-I, Class X-II (including
the
X-I Component, the C-X Component and the S-X Component) and Class R Certificates
on such Distribution Date, stated separately, and the aggregate amounts, if
any,
of distributions to the Holders of the Class C-I, Class C-II, Class X-I, Class
X-II (including the X-I Component, the C-X Component and the S-X Component)
and
Class R Certificates on all Distribution Dates, stated separately;
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(iv) the
amount, if any, of any distributions to the Deferred Interest Cap Provider
with
respect to each Class of Grantor Trust Certificates (A) as interest on any
outstanding Cap Deferred Interest Amount, (B) in reduction of such Cap Deferred
Interest Amount or (C) as a termination payment or for any other
reason;
(v) the
amount of the Cap Deferred Interest Amount for each Class of Grantor Trust
Certificates after distributions on such Distribution Date;
(vi) by
Mortgage Pool and in the aggregate (A) the aggregate amount of any Advances
required to be made as of the end of the month immediately preceding the month
in which such Distribution Date occurs by a Servicer or the Master Servicer
(or
by the Trustee as successor master servicer) with respect to such Distribution
Date, (B) the aggregate amount of such Advances actually made, and (C) the
amount, if any, by which (A) above exceeds (B) above;
(vii) by
Mortgage Pool and in the aggregate, the total number of Mortgage Loans, the
aggregate Scheduled Principal Balance of all the Mortgage Loans as of the close
of business on the last day of the related Collection Period, after giving
effect to payments allocated to principal reported under clause (i)
above;
(viii) the
Class
Principal Amount (or Class Notional Amount) of each Class of Certificates,
to
the extent applicable, as of such Distribution Date after giving effect to
payments allocated to principal reported under clause (i) above, separately
identifying any reduction of any of the foregoing Certificate Principal Amounts
due to Pool 1-2 Applied Loss Amounts or Pool 3-4 Applied Loss Amounts, as
applicable;
(ix) by
Mortgage Pool and in the aggregate, the amount of any Realized Losses incurred
with respect to the Mortgage Loans (x) in the applicable Prepayment Period
and
(y) in the aggregate since the Cut-off Date;
(x) by
Mortgage Pool and in the aggregate, the amount of the Servicing Fees and General
Servicing Fees paid during the Collection Period to which such distribution
relates;
(xi) by
Mortgage Pool and in the aggregate, the number and aggregate Scheduled Principal
Balance of Mortgage Loans, as reported to the Trustee by the Master Servicer,
(a) remaining outstanding, (b) Delinquent 30 to 59 days on a contractual basis,
(c) Delinquent 60 to 89 days on a contractual basis, (d) Delinquent 90 or more
days on a contractual basis, (e) as to which foreclosure proceedings have been
commenced, all as of the close of business on the last Business Day of the
calendar month immediately preceding the month in which such Distribution Date
occurs, (f) in bankruptcy and (g) that are REO Properties (the information
in
this item (xi) to be calculated utilizing the ABS delinquency
method);
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(xii) by
Mortgage Pool and in the aggregate, the aggregate Scheduled Principal Balance
of
any Mortgage Loans with respect to which the related Mortgaged Property became
a
REO Property as of the close of business on the last Business Day of the
calendar month immediately preceding the month in which such Distribution Date
occurs;
(xiii) with
respect to substitution of Mortgage Loans in the preceding calendar month,
the
Scheduled Principal Balance of each Deleted Mortgage Loan, and of each
Qualifying Substitute Mortgage Loan;
(xiv) the
aggregate outstanding Carryforward Interest, Net Prepayment Interest Shortfalls,
Deferred Amounts, Basis Risk Shortfalls and Unpaid Basis Risk Shortfalls, if
any, for each applicable Class of Certificates, after giving effect to the
distribution made on such Distribution Date;
(xv) the
Certificate Interest Rate applicable to such Distribution Date with respect
to
each Class of Certificates (with a notation if such Certificate Interest Rate
reflects the application of the applicable Net Funds Cap);
(xvi) by
Mortgage Pool and in the aggregate, the Interest Remittance Amount, the
Principal Remittance Amount, the Principal Distribution Amount, the Pool 1-2
Overcollateralization Release Amount and the Pool 3-4 Overcollateralization
Release Amount applicable to such Distribution Date;
(xvii) if
applicable, the amount of any shortfall (i.e., the difference between the
aggregate amounts of principal and interest which Certificateholders would
have
received if there were sufficient available amounts in the Certificate Account
and the amounts actually distributed);
(xviii) the
Pool
1-2 Overcollateralization Amount and Pool 3-4 Overcollateralization Amount
after
giving effect to the distributions made on such Distribution Date;
(xix) the
amount of any Pool 1-2 Overcollateralization Deficiency and Pool 3-4
Overcollateralization Deficiency after giving effect to the distributions made
in such Distribution Date;
(xx) the
level
of LIBOR and the Certificate Interest Rate of each of the LIBOR Certificates
and
the Grantor Trust Certificates;
(xxi) the
amount of any payments made to each Class of Certificates that are treated
as
payments received in respect of a REMIC I-2 Regular Interest or REMIC II-11
Regular Interest and the amount of any payments to each Class of Certificates
that are not treated as payments received in respect of a REMIC I-2 Regular
Interest or REMIC II-11 Regular Interest;
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(xxii) the
amount of any FPD Premiums and EPD Premiums, if any, for such Distribution
Date;
(xxiii) the
amount of the monthly Certificate Insurer Premium (and the Aggregate Certificate
Insurer Premium if different) due to the Certificate Insurer on the related
Distribution Date and the amount of any Insured Amounts paid in respect of
the
Guaranteed Distributions to the Guaranteed Certificates paid out of the Policy
Payment Account under the Certificate Insurance Policy;
(xxiv) a
statement as to whether any exchanges of Exchangeable Certificates or Exchange
Certificates have taken place since the preceding Distribution Date, and, if
applicable, the Class of Certificates, certificate balances, including notional
balances, certificate interest rates, and any interest and principal paid,
including any shortfalls allocated, of any classes of certificates that were
received by the Certificateholder as a result of such exchange;
(xxv) the
amount of any Net Swap Payment to the Supplemental Interest Trust made pursuant
to Section 5.02, any Net Swap Payment to the Swap Counterparty made pursuant
to
Section 5.02, any Swap Termination Payment to the Supplemental Interest Trust
made pursuant to Sections 5.02 and any Swap Termination Payment to the Swap
Counterparty made pursuant to Section 5.02; and
(xxvi) the
amount of any payments made by the applicable Cap Provider under the Interest
Rate Cap Agreement or the Deferred Interest Cap Agreements.
In
the
case of information furnished pursuant to sub-clauses (i), (ii) and (viii)
above, the amounts shall (except with respect to the Class X-I and Class X-II
Certificates) be expressed as a dollar amount per $1,000 of original principal
amount of Certificates.
In
addition to the information listed above for any year in which the Depositor
is
subject to Exchange Act reporting with respect to the Certificates, such
Distribution Date report shall also include such other information as is
required by Form 10-D, including, but not limited to, the information required
by Item 1121 (§ 229.1121) of Regulation AB to the extent that the Trustee shall
have received any such information from the Depositor, the Sponsor, the Master
Servicer, any Servicer, the Custodian, the Cap Providers or any Subservicer
or
Subcontractor therefor, as applicable, no later than four Business Days prior
to
the Distribution Date.
The
Trustee will make such report and additional loan level information (and, at
its
option, any additional files containing the same information in an alternative
format) provided to it by the Master Servicer available each month to
Certificateholders, the Certificate Insurer, any NIMS Insurer, and the Rating
Agencies via the Trustee’s internet website. The Trustee’s internet website
shall initially be located at xxxx://xxxxxxxxxxxxxxxxxxxxxx.xxx and assistance
in using the website can be obtained by emailing the Trustee’s customer service
desk at xx.xxxxxxxxxxx.xxxxxxxx@xxxxxx.xxx. Such parties that are unable to
use
the website are entitled to have a paper copy mailed to them via first class
mail by calling the customer service desk and indicating such. The Trustee
shall
have the right to change the way such statements are distributed in order to
make such distribution more convenient and/or more accessible to the above
parties and the Trustee shall provide timely and adequate notification to all
above parties regarding any such changes.
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The
Trustee shall provide a “zero settlement file” to Bloomberg L.P. within seven
(7) calendar days after the receipt of the collateral data file from the
Depositor, but in no event later than the first Distribution Date, which shall
contain all of the information in the initial Monthly Report (without giving
effect to any distributions); provided, however, that in no event will such
zero
settlement file contain any mortgagor-specific information.
The
foregoing information and reports shall be prepared and determined by the
Trustee based solely on Mortgage Loan data provided to the Trustee by the Master
Servicer (in a format agreed to by the Trustee and the Master Servicer) no
later
than 2:00 p.m. Eastern Time four Business Days prior to the Distribution Date
or
such other time period as set forth in Section 9.23(c). In preparing or
furnishing the foregoing information, the Trustee shall be entitled to rely
conclusively on the accuracy and completeness of the information or data (i)
regarding the Mortgage Loans (including any Early Payment Default Mortgage
Loans) and the related REO Property that has been provided to the Master
Servicer by the Servicer and to the Trustee by the Master Servicer, (ii)
regarding the Interest Rate Cap Agreement and Deferred Interest Cap Agreements
that has been provided to the Trustee by the Cap Providers and (iii) regarding
the Swap Agreement that has been provided to the Trustee by the Swap
Counterparty, and the Trustee shall not be obligated to verify, recompute,
reconcile or recalculate any such information or data. The Trustee shall be
entitled to conclusively rely on the Mortgage Loan data provided by the Master
Servicer and shall have no liability for any errors or omissions in such
Mortgage Loan data. The Master Servicer shall be entitled to conclusively rely
on the Mortgage Loan data provided by each Servicer and shall have no liability
for any errors or omissions in such Mortgage Loan data.
(b) Upon
the
reasonable advance written request of any Certificateholder that is a savings
and loan, bank or insurance company or the Certificate Insurer (which request,
if received by the Trustee will be promptly forwarded to the Master Servicer),
the Master Servicer shall provide, or cause to be provided, to the extent such
information is available to the Master Servicer exercising reasonable efforts
to
obtain such information (or, to the extent that such information or
documentation is not required to be provided by the applicable Servicer under
the related Servicing Agreement, shall use reasonable efforts to obtain such
information and documentation from such Servicer, and provide) to such
Certificateholder such reports and access to information and documentation
regarding the Mortgage Loans as such Certificateholder may reasonably deem
necessary to comply with applicable regulations of the Office of Thrift
Supervision or its successor or other regulatory authorities with respect to
the
NIM Securities or an investment in the Certificates; provided, however, that
the
Master Servicer shall be entitled to be reimbursed by such Certificateholder
for
the actual expenses incurred in providing such reports and access.
(c) Within
90
days, or such shorter period as may be required by statute or regulation, after
the end of each calendar year, the Trustee shall, upon written request, have
prepared and shall make available to each Person who at any time during the
calendar year was a Certificateholder of record, and to any NIMS Insurer, and
make available to Certificate Owners (identified as such by the Clearing Agency)
in accordance with applicable regulations, a report summarizing the items
provided to the Certificateholders pursuant to Section 4.03(a)(i) and (ii)
on an
annual basis as may be required to enable such Holders to prepare their federal
income tax returns; provided, however that this Section 4.03(c) shall not be
applicable where relevant reports or summaries are required elsewhere in this
Agreement. Such information shall include the amount of original issue discount
accrued on each Class of Certificates and information regarding the expenses
of
the Trust Fund. The Trustee shall be deemed to have satisfied this requirement
if it forwards such information in any other format permitted by the Code.
The
Master Servicer shall provide the Trustee with such information (to the extent
readily available to the Master Servicer) as is necessary for the Trustee to
prepare such reports.
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(d) The
Trustee shall prepare and file with the IRS, on behalf of the Trust Fund, an
application for an employer identification number on IRS Form SS-4 or by any
other acceptable method. The Trustee shall also file a Form 8811 as required.
The Trustee, upon receipt from the IRS of the Notice of Taxpayer Identification
Number Assigned, shall upon request promptly forward a copy of such notice
to
the Master Servicer and the Depositor. The Trustee shall furnish any other
information that is required by the Code and regulations thereunder to be made
available to Certificateholders. The Master Servicer shall provide the Trustee
with such information (to the extent readily available to the Master Servicer)
as is necessary for the Trustee to comply with the foregoing.
Section
4.04. The
Certificate Account.
(a) The
Trustee shall establish and maintain in its name, as trustee, a trust account
(the “Certificate Account”) entitled “Certificate Account, U.S. Bank National
Association, as Trustee, in trust for the benefit of the Holders of Xxxxxx
XS
Trust Mortgage Pass-Through Certificates, Series 2007-15N” until disbursed
pursuant to the terms of this Agreement. The Certificate Account shall be an
Eligible Account and shall be for the benefit of the Certificateholders and
the
Certificate Insurer. If the existing Certificate Account ceases to be an
Eligible Account, the Trustee shall establish a new Certificate Account that
is
an Eligible Account within 20 Business Days and transfer all funds and
investment property on deposit in such existing Certificate Account into such
new Certificate Account. The Certificate Account shall relate solely to the
Certificates issued hereunder and funds in the Certificate Account shall be
held
separate and apart from and shall not be commingled with any other monies
including, without limitation, other monies of the Trustee held under this
Agreement. The Trustee shall give to the Depositor, Master Servicer and any
NIMS
Insurer prior written notice of the name and address of the depository
institution at which the Certificate Account is maintained and the account
number of such Certificate Account.
(b) The
Trustee shall deposit or cause to be deposited into the Certificate Account,
on
the day on which, or, if such day is not a Business Day, the Business Day
immediately following the day on which, any monies are remitted by the Master
Servicer to the Trustee, all such amounts. The Trustee shall make withdrawals
from the Certificate Account only for the following purposes:
(i) to
pay
itself any investment income earned with respect to funds in the Certificate
Account invested in Eligible Investments as set forth in subsection (c) below,
and to make payments to itself and others prior to making distributions pursuant
to Section 5.02 for any expenses or other indemnification owing to itself and
others pursuant to any provision of this Agreement or any Custodial Agreement;
provided that such payments are for “unanticipated expenses” within the meaning
of Treasury Regulation Section 1.860G-1(b)(3)(ii);
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(ii) to
make
payment to itself pursuant to any provision of this Agreement, or to reimburse
itself or its agents for any amounts reimbursable to it pursuant to Sections
6.11, 6.12 or 7.01; provided that such payments are for “unanticipated expenses”
within the meaning of Treasury Regulation Section
1.860G-1(b)(3)(ii);
(iii) to
withdraw amounts deposited in the Certificate Account in error;
(iv) to
make
payments to itself and others pursuant to any provision of this
Agreement;
(v) to
make
distributions to Certificateholders and the Certificate Insurer pursuant to
Article V; and
(vi) to
clear
and terminate the Certificate Account pursuant to Section 7.02.
Any
withdrawals described in the preceding sentence shall be allocated and limited
to collections or other recoveries on the related Mortgage Pool and shall be
accounted for in such manner.
(c) The
Trustee may invest, or cause to be invested, funds held in the Certificate
Account, which funds, if invested, shall be invested in Eligible Investments
(which may be obligations of the Trustee). All such investments must be payable
on demand or mature no later than the next Distribution Date, and shall not
be
sold or disposed of prior to their maturity. All such Eligible Investments
will
be made in the name of the Trustee (in its capacity as such) or its nominee.
All
income and gain realized from any such investment shall be compensation to
the
Trustee and shall be subject to its withdrawal on order from time to time.
The
amount of any losses incurred in respect of any such investments shall be paid
by the Trustee for deposit in the Certificate Account out of its own funds,
without any right of reimbursement therefor, immediately as
realized.
Except
as
otherwise expressly provided in this Agreement, if any default occurs in the
making of a payment due under any Eligible Investment, or if a default occurs
in
any other performance required under any Eligible Investment, the Trustee may
and, subject to Section 6.01 and Section 6.02(iv), upon the request of the
NIMS
Insurer, shall take such action as may be appropriate to enforce such payment
or
performance, including the institution and prosecution of appropriate
proceedings.
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ARTICLE
V.
DISTRIBUTIONS
TO HOLDERS OF CERTIFICATES
Section
5.01. Distributions
Generally.
(a) Subject
to Section 7.01 respecting the final distribution on the Certificates, on each
Distribution Date the Trustee or the Paying Agent shall make distributions
in
accordance with this Article V. Such distributions shall be made by wire
transfer if the Certificateholder has provided the Trustee with wire
instructions or by check mailed to the address of such Certificateholder as
it
appears in the books of the Trustee if the Certificateholder has not provided
the Trustee with wire instructions in immediately available funds to an account
specified in the request and at the expense of such Certificateholder; provided,
however, that the final distribution in respect of any Certificate shall be
made
only upon presentation and surrender of such Certificate at the Corporate Trust
Office; provided, further, that the foregoing provisions shall not apply to
any
Class of Certificates as long as such Certificate remains a Book-Entry
Certificate in which case all payments made shall be made through the Clearing
Agency and its Clearing Agency Participants. Notwithstanding such final payment
of principal of any of the Certificates, each Residual Certificate will remain
outstanding until the termination of each REMIC and the payment in full of
all
other amounts due with respect to the Residual Certificates and at such time
such final payment in retirement of any Residual Certificate will be made only
upon presentation and surrender of such Certificate at the Corporate Trust
Office. If any payment required to be made on the Certificates or by the
Certificate Insurer is to be made on a day that is not a Business Day, then
such
payment will be made on the next succeeding Business Day. Payments to the
Certificate Insurer shall in all cases be made by wire transfer in immediately
available funds to the account designated by the Certificate
Insurer.
(b) All
distributions or allocations made with respect to Certificateholders within
each
Class on each Distribution Date shall be allocated among the outstanding
Certificates of such Class equally in proportion to their respective initial
Class Principal Amounts or initial Class Notional Amounts (or Percentage
Interests).
(c) The
Trustee shall make payments to Certificateholders and the Swap Counterparty
and
any other person pursuant to this Article V based solely on the information
set
forth in the monthly report furnished by the Trustee in accordance with Section
4.03(a), and shall be entitled to conclusively rely on such information and
reports, and on the calculations contained therein, when making distributions
to
Certificateholders and the Swap Counterparty. The Trustee shall have no
liability for any errors in such reports or information, and shall not be
required to verify, recompute, reconcile or recalculate any such information
or
data.
Section
5.02. Distributions
from the Certificate Account.
(a) On
each
Distribution Date, the Trustee (or the Paying Agent on behalf of the Trustee)
shall withdraw from the Certificate Account the Total Distribution Amount
(excluding all Prepayment Premiums) and amounts that are available for payment
to the Swap Counterparty and shall allocate such amount to the interests issued
in respect of each REMIC and shall distribute such amount as specified in this
Section.
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(b) On
each
Distribution Date, the Trustee shall distribute the Interest Remittance Amount
for Pool 1, Pool 1C and Pool 2 as follows:
(i) On
each
Distribution Date, the Trustee shall distribute the Interest Remittance Amount
for Pool 1 for such date concurrently, as follows:
(1) for
deposit into the Supplemental Interest Trust Account, the Pool 1 Swap Allocation
Payment Amount (not due to a Swap Counterparty Trigger Event) owed to the Swap
Counterparty (including amounts remaining unpaid from previous Distribution
Dates);
(2) for
deposit into the Supplemental Interest Trust Account, any Net Swap Payment
or
Swap Termination Payment not due to a Swap Counterparty Trigger Event owed
to
the Swap Counterparty to the extent not paid previously from the Interest
Remittance Amount from Pool 1C and Pool 2 pursuant to Sections 5.02(b)(ii)(1)
and 5.02(b)(iii)(1);
(3) concurrently,
to each Class of Pool 1 Senior Certificates, Current Interest and any
Carryforward Interest for such Classes for such Distribution Date; provided,
however, that if funds available are insufficient to pay such amounts, any
resulting shortfalls will be allocated pro rata on the basis of Current Interest
and Carryforward Interest due such Classes on such Distribution
Date;
(4) for
application pursuant to Section 5.02(b)(iv), any such Interest Remittance Amount
remaining undistributed for such Distribution Date.
(ii) On
each
Distribution Date, the Trustee shall distribute the Interest Remittance Amount
for Pool 1C for such date as follows:
(1) for
deposit into the Supplemental Interest Trust Account, the Pool 1C Swap
Allocation Payment Amount (not due to a Swap Counterparty Trigger Event) owed
to
the Swap Counterparty (including amounts remaining unpaid from previous
Distribution Dates);
(2) for
deposit into the Supplemental Interest Trust Account, any Net Swap Payment
or
Swap Termination Payment not due to a Swap Counterparty Trigger Event owed
to
the Swap Counterparty to the extent not paid previously from the Interest
Remittance Amount from Pool 1 and Pool 2 pursuant to Sections 5.02(b)(i)(1)
and
5.02(b)(iii)(1);
(3) concurrently,
to each Class of Pool 1C Senior Certificates, Current Interest and any
Carryforward Interest for such Classes for such Distribution Date; provided,
however, that if funds available are insufficient to pay such amounts, any
resulting shortfalls will be allocated pro rata on the basis of Current Interest
and Carryforward Interest due such Classes on such Distribution
Date;
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(4) for
application pursuant to Section 5.02(b)(iv), any such Interest Remittance Amount
remaining undistributed for such Distribution Date.
(iii) On
each
Distribution Date, the Trustee shall distribute the Interest Remittance Amount
for Pool 2 for such date as follows:
(1) for
deposit into the Supplemental Interest Trust Account, the Pool 2 Swap Allocation
Payment Amount (not due to a Swap Counterparty Trigger Event) owed to the Swap
Counterparty (including amounts remaining unpaid from previous Distribution
Dates);
(2) for
deposit into the Supplemental Interest Trust Account, any Net Swap Payment
or
Swap Termination Payment not due to a Swap Counterparty Trigger Event owed
to
the Swap Counterparty to the extent not paid previously from the Interest
Remittance Amount from Pool 1 and Pool 1C pursuant to Sections 5.02(b)(i)(1)
and
5.02(b)(ii)(1);
(3) concurrently,
to each Class of Pool 2 Senior Certificates, Current Interest and any
Carryforward Interest for such Classes for such Distribution Date; provided,
however, that if funds available are insufficient to pay such amounts, any
resulting shortfalls will be allocated pro rata on the basis of Current Interest
and Carryforward Interest due such Classes on such Distribution
Date;
(4) for
application pursuant to Section 5.02(b)(iv), any such Interest Remittance Amount
remaining undistributed for such Distribution Date.
(iv) On
each
Distribution Date, the Trustee will distribute the aggregate of any remaining
Interest Remittance Amounts from Sections 5.02(b)(i)(4), 5.02(b)(ii)(4) and
5.02(b)(iii)(4), as applicable, as follows:
(A) concurrently,
to each Class of Group I Senior Certificates, Current Interest and any
Carryforward Interest for such Classes for such Distribution Date (any shortfall
in Current Interest and Carryforward Interest to be allocated among such Classes
in proportion to the amount of Current Interest and Carryforward Interest that
would otherwise be distributable thereon) to the extent not paid on such
Distribution Date pursuant to Sections 5.02(b)(i)(3), 5.02(b)(ii)(3) and
5.02(b)(iii)(3) above;
(B) to
each
Class of Group I Subordinate Certificates (other than the Class M8-I and Class
M9-I Certificates), in accordance with the Group I Subordinate Priority, Current
Interest and any Carryforward Interest for such Classes for such Distribution
Date;
(C) to
the
Trustee, previously unreimbursed extraordinary costs, liabilities and expenses
related to the Group I Certificates; and
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(D) for
application as part of Pool 1-2 Monthly Excess Cashflow for such Distribution
Date, as provided in Section 5.02(f), any such Interest Remittance Amount
remaining after application pursuant to clauses (A) through (C)
above.
(c) On
each
Distribution Date, the Interest Remittance Amount for Pool 3 and Pool 4 for
such
date will be distributed in the following order of priority:
(i) On
each
Distribution Date, the Interest Remittance Amount for Pool 3 for such date
will
be distributed in the following order of priority:
(1) to
the
Certificate Insurer, the Certificate Insurer Premium with respect to the Class
3-A2 Certificates and such Distribution Date;
(2) concurrently,
to each Class of Pool 3 Senior Certificates, Current Interest and any
Carryforward Interest for such Classes for such Distribution Date; provided,
however, that if funds available are insufficient to pay such amounts, any
resulting shortfalls will be allocated pro
rata
on the
basis of Current Interest and Carryforward Interest due such Classes on such
Distribution Date;
(3) to
the
Certificate Insurer, any unreimbursed Insured Payments with respect to the
Class
3-A2 Certificates, plus all amounts due to the Certificate Insurer under the
Commitment Letter, together with interest thereon at the rate specified in
the
Commitment Letter;
(4) for
application as part of Pool 3-4 Monthly Excess Cashflow for such Distribution
Date, as provided in Section 5.02(g), any such Interest Remittance Amount
remaining after application pursuant to clauses (1) through (3)
above.
(ii) On
each
Distribution Date, the Interest Remittance Amount for Pool 4 for such date
will
be distributed in the following order of priority:
(1) to
the
Certificate Insurer, the Certificate Insurer Premium with respect to the Class
4-A3 Certificates and such Distribution Date;
(2) concurrently,
to each Class of Pool 4 Senior Certificates, Current Interest and any
Carryforward Interest for such Classes for such Distribution Date; provided,
however, that if funds available are insufficient to pay such amounts, any
resulting shortfalls will be allocated pro
rata
on the
basis of Current Interest and Carryforward Interest due such Classes on such
Distribution Date;
(3) to
the
Certificate Insurer, any unreimbursed Insured Payments with respect to the
Class
4-A3 Certificates, plus all amounts due to the Certificate Insurer under the
Commitment Letter, together with interest thereon at the rate specified in
the
Commitment Letter;
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(4) for
application as part of Pool 3-4 Monthly Excess Cashflow for such Distribution
Date, as provided in Section 5.02(g), any such Interest Remittance Amount
remaining after application pursuant to clauses (1) through (3)
above.
(iii) On
each
Distribution Date, the Trustee will distribute the aggregate of any remaining
Interest Remittance Amounts from Sections 5.02(c)(i)(4) and 5.02(c)(ii)(4),
as
applicable, as follows:
(1) to
the
Certificate Insurer, the monthly premium due under the Certificate Insurance
Policy with respect to the Class 3-A2 and Class 4-A3 Certificates to the extent
not paid pursuant to Sections 5.02(c)(i)(1) and 5.02(c)(ii)(1);
(2) concurrently,
to each Class of Group II Senior Certificates, Current Interest and any
Carryforward Interest for such Classes for such Distribution Date; provided,
however, that if funds available are insufficient to pay such amounts, any
resulting shortfalls will be allocated pro
rata
on the
basis of Current Interest and Carryforward Interest due such Classes on such
Distribution Date;
(3) to
the
Certificate Insurer, any unreimbursed Insured Payments with respect to the
Class
3-A2 and Class 4-A3 Certificates, plus all amounts due to the Certificate
Insurer under the Commitment Letter, together with interest thereon at the
rate
specified in the Commitment Letter to the extent not paid pursuant to Sections
5.02(c)(i)(3) and 5.02(c)(ii)(3);
(4) to
each
Class of Group II Subordinate Certificates, in accordance with the Group II
Subordinate Priority, Current Interest and any Carryforward Interest for such
Classes for such Distribution Date;
(5) to
the
Trustee, previously unreimbursed extraordinary costs, liabilities and expenses
related to the Group II Certificates; and
(6) for
application as part of Pool 3-4 Monthly Excess Cashflow for such Distribution
Date, as provided in Section 5.02(g), any such Interest Remittance Amount
remaining after application pursuant to clauses (1) through (5)
above.
(d) On
each
Distribution Date, the Trustee shall distribute the Principal Distribution
Amount for Pool 1, Pool 1C and Pool 2 for such date, concurrently, as
follows:
(i) On
each
Distribution Date (a) prior to the Pool 1-2 Stepdown Date or (b) with respect
to
which a Pool 1-2 Trigger Event is in effect, until the aggregate Certificate
Principal Amount of the Group I Certificates equals the Pool 1-2 Target Amount
for such Distribution Date, the Trustee shall distribute the Principal
Distribution Amount for Pool 1, Pool 1C and Pool 2 concurrently, as
follows:
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(A) For
Pool
1: The Principal Distribution Amount for Pool 1 will be distributed on each
Distribution Date in the following order of priority:
(1) for
deposit into the Supplemental Interest Trust Account, the Pool 1 Swap Allocation
Payment Amount not due to a Swap Counterparty Trigger Event owed to the Swap
Counterparty (to the extent not paid previously from the Interest Remittance
Amount in accordance with Section 5.02(b));
(2) for
deposit into the Supplemental Interest Trust Account, any Net Swap Payment
or
Swap Termination Payment not due to a Swap Counterparty Trigger Event owed
to
the Swap Counterparty (to the extent not paid previously from the Interest
Remittance Amount in accordance with Section 5.02(b) or from Sections
5.02(d)(i)(B)(1) and 5.02(d)(i)(C)(1);
(3) to
the
Pool 1 Senior Certificates, in accordance with the Pool 1 Senior Priority,
in
each case until the Class Principal Amount of each such class has been reduced
to zero;
(4) concurrently,
according to Excess Principal Allocation Percentages for Pool 1C and Pool 2:
(x)
to the Pool 1C Senior Certificates, in accordance with the Pool 1C Senior
Priority, after giving effect to distribution in Section 5.02(d)(i)(B)(3),
and
(y) to the Pool 2 Senior Certificates, in accordance with the Pool 2 Senior
Priority, after giving effect to distribution in Section 5.02(d)(i)(C)(3),
in
each case until the Class Principal Amount of each class has been reduced to
zero;
(5) to
the
Class M1-I, Class M2-I, Class M3-I, Class M4-I, Class M5-I, Class M6-I, Class
M7-I, Class M8-I and Class M9-I Certificates, sequentially, in that order,
in
each case until the Class Principal Amount of each such Class has been reduced
to zero; and
(6) for
application as part of the Pool 1-2 Monthly Excess Cashflow for such
Distribution Date, pursuant to Section 5.02(f), any such Principal Distribution
Amount remaining after application pursuant to Sections 5.02(d)(i)(A)(1) through
(5) above.
(B) For
Pool
1C: The Principal Distribution Amount for Pool 1C will be distributed on each
Distribution Date in the following order of priority:
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(1) for
deposit into the Supplemental Interest Trust Account, the Pool 1C Swap
Allocation Payment Amount not due to a Swap Counterparty Trigger Event owed
to
the Swap Counterparty (to the extent not paid previously from the Interest
Remittance Amount in accordance with Section 5.02(b));
(2) for
deposit into the Supplemental Interest Trust Account, any Net Swap Payment
or
Swap Termination Payment not due to a Swap Counterparty Trigger Event owed
to
the Swap Counterparty (to the extent not paid previously from the Interest
Remittance Amount in accordance with Section 5.02(b) or from Sections
5.02(d)(i)(A)(1) and 5.02(d)(i)(C)(1);
(3) to
the
Pool 1C Senior Certificates, in accordance with the Pool 1C Senior Priority,
in
each case until the Class Principal Amount of each such class has been reduced
to zero;
(4) concurrently,
according to Excess Principal Allocation Percentages for Pool 1 and Pool 2:
(x)
to the Pool 1 Senior Certificates, in accordance with the Pool 1 Senior
Priority, after giving effect to distribution in Section 5.02(d)(i)(A)(3),
and
(y) to the Pool 2 Senior Certificates, in accordance with the Pool 2 Senior
Priority, after giving effect to distribution in Section 5.02(d)(i)(C)(3),
in
each case until the Class Principal Amount of each class has been reduced to
zero;
(5) to
the
Class M1-I, Class M2-I, Class M3-I, Class M4-I, Class M5-I, Class M6-I, Class
M7-I, Class M8-I and Class M9-I Certificates, sequentially, in that order,
in
each case until the Class Principal Amount of each such Class has been reduced
to zero; and
(6) for
application as part of the Pool 1-2 Monthly Excess Cashflow for such
Distribution Date, pursuant to Section 5.02(f), any such Principal Distribution
Amount remaining after application pursuant to Sections 5.02(d)(i)(B)(1) through
(5) above.
(C) For
Pool
2: The Principal Distribution Amount for Pool 2 will be distributed on each
Distribution Date in the following order of priority:
(1) for
deposit into the Supplemental Interest Trust Account, the Pool 2 Swap Allocation
Payment Amount not due to a Swap Counterparty Trigger Event owed to the Swap
Counterparty (to the extent not paid previously from the Interest Remittance
Amount in accordance with Section 5.02(b));
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(2) for
deposit into the Supplemental Interest Trust Account, any Net Swap Payment
or
Swap Termination Payment not due to a Swap Counterparty Trigger Event owed
to
the Swap Counterparty (to the extent not paid previously from the Interest
Remittance Amount in accordance with Section 5.02(b) or from Sections
5.02(d)(i)(A)(1) and 5.02(d)(i)(B)(1);
(3) to
the
Pool 2 Senior Certificates, in accordance with the Pool 2 Senior Priority,
in
each case until the Class Principal Amount of each such class has been reduced
to zero;
(4) concurrently,
according to Excess Principal Allocation Percentages for Pool 1 and Pool 1C:
(x)
to the Pool 1 Senior Certificates, in accordance with the Pool 1 Senior
Priority, after giving effect to distribution in Section 5.02(d)(i)(A)(3),
and
(y) to the Pool 1C Senior Certificates, in accordance with the Pool 1C Senior
Priority, after giving effect to distribution in Section 5.02(d)(i)(C)(3),
in
each case until the Class Principal Amount of each class has been reduced to
zero;
(5) to
the
Class M1-I, Class M2-I, Class M3-I, Class M4-I, Class M5-I, Class M6-I, Class
M7-I, Class M8-I and Class M9-I Certificates, sequentially, in that order,
in
each case until the Class Principal Amount of each such Class has been reduced
to zero; and
(6) for
application as part of the Pool 1-2 Monthly Excess Cashflow for such
Distribution Date, pursuant to Section 5.02(f), any such Principal Distribution
Amount remaining after application pursuant to Sections 5.02(d)(i)(C)(1) through
(5) above.
(ii) On
each
Distribution Date (a) on or after the Pool 1-2 Stepdown Date and (b) with
respect to which a Pool 1-2 Trigger Event is not in effect, the Principal
Distribution Amount for each of Pool 1, Pool 1C and Pool 2 for such date will
be
distributed in the following order of priority:
(A) for
deposit into the Supplemental Interest Trust Account, any Net Swap Payment
or
Swap Termination Payment (unless due to a Swap Counterparty Trigger Event)
owed
to the Swap Counterparty (to the extent not paid previously from the Interest
Remittance Amount for Pool 1, Pool 1C and Pool 2 in accordance with Section
5.02(b))
(B) for
so
long as any of the Group I Subordinate Certificates are outstanding, to the
Pool
1 Senior Certificates (from amounts in Pool 1, except as provided below), Pool
1C Senior Certificates (from amounts in Pool 1C, except as provided below)
and
to the Pool 2 Senior Certificates (from amounts in Pool 2, except as provided
below), in each case in accordance with the priorities set forth in Section
5.02(d)(i), concurrently by principal allocation percentage, in an amount equal
to the lesser of (x) the Principal Distribution Amount for the related Mortgage
Pool for such Distribution Date and (y) the Pool 1-2 Senior Principal
Distribution Amount for the related Mortgage Pool (allocated by Principal
Allocation Percentage) for such Distribution Date until the Class Principal
Amount of each such Class has been reduced to zero; or (b) otherwise to the
Group I Senior Certificates (in each case in accordance with Section
5.02(d)(i)), the Principal Distribution Amount for the related Mortgage Pool
for
such Distribution Date;
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(C) to
the
Class M1-I Certificates, an amount equal to the lesser of (x) the excess of
(a)
the Principal Distribution Amount for Pool 1, Pool 1C and Pool 2 for such
Distribution Date over (b) the amount distributed to the Group I Senior
Certificates on such Distribution Date pursuant to clause (B) above and any
Net
Swap Payment or Swap Termination Payment paid on such Distribution Date pursuant
to clause (A) above and (y) the M1-I Principal Distribution Amount for such
Distribution Date, until the Class Principal Amount of such Class has been
reduced to zero;
(D) to
the
Class M2-I Certificates, an amount equal to the lesser of (x) the excess of
(a)
the Principal Distribution Amount for Pool 1, Pool 1C and Pool 2 for such
Distribution Date over (b) the amount distributed to the Group I Senior
Certificates and the Class M1-I Certificates on such Distribution Date pursuant
to clauses (B) through (C) above, and any Net Swap Payment or Swap Termination
Payment paid on such Distribution Date pursuant to clause (A) above and (y)
the
M2-I Principal Distribution Amount for such Distribution Date, until the Class
Principal Amount of such Class has been reduced to zero;
(E) to
the
Class M3-I Certificates, an amount equal to the lesser of (x) the excess of
(a)
the Principal Distribution Amount for Pool 1, Pool 1C and Pool 2 for such
Distribution Date over (b) the amount distributed to the Group I Senior
Certificates and the Class M1-I and Class M2-I Certificates on such Distribution
Date pursuant to clauses (B) through (D) above, and any Net Swap Payment or
Swap
Termination Payment paid on such Distribution Date pursuant to clause (A) above
and (y) the M3-I Principal Distribution Amount for such Distribution Date,
until
the Class Principal Amount of such Class has been reduced to zero;
(F) to
the
Class M4-I Certificates, an amount equal to the lesser of (x) the excess of
(a)
the Principal Distribution Amount for Pool 1, Pool 1C and Pool 2 for such
Distribution Date over (b) the amount distributed to the Group I Senior
Certificates and the Class M1-I, Class M2-I and Class M3-I Certificates on
such
Distribution Date pursuant to clauses (B) through (E) above, and any Net Swap
Payment or Swap Termination Payment paid on such Distribution Date pursuant
to
clause (A) above and (y) the M4-I Principal Distribution Amount for such
Distribution Date, until the Class Principal Amount of such Class has been
reduced to zero;
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(G) to
the
Class M5-I Certificates, an amount equal to the lesser of (x) the excess of
(a)
the Principal Distribution Amount for Pool 1, Pool 1C and Pool 2 for such
Distribution Date over (b) the amount distributed to the Group I Senior
Certificates and the Class M1-I, Class M2-I, Class M3-I and Class M4-I
Certificates on such Distribution Date pursuant to clauses (B) through (F)
above, and any Net Swap Payment or Swap Termination Payment paid on such
Distribution Date pursuant to clause (A) above and (y) the M5-I Principal
Distribution Amount for such Distribution Date, until the Class Principal Amount
of such Class has been reduced to zero;
(H) to
the
Class M6-I Certificates, an amount equal to the lesser of (x) the excess of
(a)
the Principal Distribution Amount for Pool 1, Pool 1C and Pool 2 for such
Distribution Date over (b) the amount distributed to the Group I Senior
Certificates and the Class M1-I, Class M2-I, Class M3-I, Class M4-I and Class
M5-I Certificates on such Distribution Date pursuant to clauses (B) through
(G)
above, and any Net Swap Payment or Swap Termination Payment paid on such
Distribution Date pursuant to clause (A) above and (y) the M6-I Principal
Distribution Amount for such Distribution Date, until the Class Principal Amount
of such Class has been reduced to zero;
(I) to
the
Class M7-I Certificates, an amount equal to the lesser of (x) the excess of
(a)
the Principal Distribution Amount for Pool 1, Pool 1C and Pool 2 for such
Distribution Date over (b) the amount distributed to the Group I Senior
Certificates and the Class M1-I, Class M2-I, Class M3-I, Class M4-I, Class
M5-I
and Class M6-I Certificates on such Distribution Date pursuant to clauses (B)
through (H) above, and any Net Swap Payment or Swap Termination Payment paid
on
such Distribution Date pursuant to clause (A) above and (y) the M7-I Principal
Distribution Amount for such Distribution Date, until the Class Principal Amount
of such Class has been reduced to zero;
(J) to
the
Class M8-I Certificates, an amount equal to the lesser of (x) the excess of
(a)
the Principal Distribution Amount for Pool 1, Pool 1C and Pool 2 for such
Distribution Date over (b) the amount distributed to the Group I Senior
Certificates and the Class M1-I, Class M2-I, Class M3-I, Class M4-I, Class
M5-I,
Class M6-I and Class M7-I Certificates on such Distribution Date pursuant to
clauses (B) through (I) above, and any Net Swap Payment or Swap Termination
Payment paid on such Distribution Date pursuant to clause (A) above and (y)
the
M8-I Principal Distribution Amount for such Distribution Date, until the Class
Principal Amount of such Class has been reduced to zero;
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(K) to
the
Class M9-I Certificates, an amount equal to the lesser of (x) the excess of
(a)
the Principal Distribution Amount for Pool 1, Pool 1C and Pool 2 for such
Distribution Date over (b) the amount distributed to the Group I Senior
Certificates and the Class M1-I, Class M2-I, Class M3-I, Class M4-I, Class
M5-I,
Class M6-I, Class M7-I and Class M8-I Certificates on such Distribution Date
pursuant to clauses (B) through (J) above, and any Net Swap Payment or Swap
Termination Payment paid on such Distribution Date pursuant to clause (A) above
and (y) the M9-I Principal Distribution Amount for such Distribution Date,
until
the Class Principal Amount of such Class has been reduced to zero;
and
(L) for
application as part of the aggregate Pool 1-2 Monthly Excess Cashflow for such
Distribution Date pursuant to Section 5.02(f), any Principal Distribution Amount
remaining after application pursuant to clauses (A) through (K)
above.
(e) On
each
Distribution Date, the Trustee shall distribute the Principal Distribution
Amount for Pool 3 and Pool 4 for such date, concurrently, as
follows:
(i) On
each
Distribution Date (a) prior to the Pool 3-4 Stepdown Date or (b) with respect
to
which a Pool 3-4 Trigger Event is in effect, until the aggregate Certificate
Principal Amount of the Group II Certificates equals the Pool 3-4 Target Amount
for such Distribution Date, the Trustee shall distribute the Principal
Distribution Amount for Pool 3 in the following order of priority:
(A) to
the
Pool 3 Senior Certificates (other than the Class 3-AX Certificates), in
accordance with the Pool 3 Senior Priority, in each case until the Class
Principal Amount of each such Class has been reduced to zero;
(B) to
the
Certificate Insurer, any unreimbursed Insured Payments with respect to the
Class
3-A2 Certificates, plus all amounts due to the Certificate Insurer under the
Commitment Letter, together with interest thereon at the rate specified in
the
Commitment Letter, to the extent not paid pursuant to Section
5.02(c);
(C) to
the
Pool 4 Senior Certificates (other than the Class 4-AX Certificates), in
accordance with the Pool 4 Senior Priority, after giving effect to distributions
in Section 5.02(e)(ii)(A) in each case until the Class Principal Amount of
each
such class has been reduced to zero;
(D) to
the
Class M1-II, Class M2-II, Class M3-II, Class M4-II, Class M5-II, Class M6-II,
Class M7-II, Class M8-II and Class M9-II Certificates, sequentially, in that
order, in each case until the Class Principal Amount of each such Class has
been
reduced to zero; and
(E) for
application as part of the Pool 3-4 Monthly Excess Cashflow for such
Distribution Date, pursuant to Section 5.02(g), any such Principal Distribution
Amount remaining after application pursuant to Sections 5.02(e)(i)(A) through
(D) above.
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(ii) On
each
Distribution Date (a) prior to the Pool 3-4 Stepdown Date or (b) with respect
to
which a Pool 3-4 Trigger Event is in effect, until the aggregate Certificate
Principal Amount of the Group II Certificates equals the Pool 3-4 Target Amount
for such Distribution Date, the Trustee shall distribute the Principal
Distribution Amount for Pool 4 in the following order of priority:
(A) to
the
Pool 4 Senior Certificates (other than the Class 4-AX Certificates), in
accordance with the Pool 4 Senior Priority, in each case until the Class
Principal Amount of each such class has been reduced to zero;
(B) to
the
Certificate Insurer, any unreimbursed Insured Payments with respect to the
Class
4-A3 Certificates, plus all amounts due to the Certificate Insurer under the
Commitment Letter, together with interest thereon at the rate specified in
the
Commitment Letter, to the extent not paid pursuant to Section
5.02(c);
(C) to
the
Pool 3 Senior Certificates (other than the Class 3-AX Certificates), in
accordance with the Pool 3 Senior Priority, after giving effect to distributions
in Section 5.02(e)(i)(A), in each case until the Class Principal Amount of
each
such Class has been reduced to zero;
(D) to
the
Class M1-II, Class M2-II, Class M3-II, Class M4-II, Class M5-II, Class M6-II,
Class M7-II, Class M8-II and Class M9-II Certificates, sequentially, in that
order, in each case until the Class Principal Amount of each such Class has
been
reduced to zero; and
(E) for
application as part of the Pool 3-4 Monthly Excess Cashflow for such
Distribution Date, pursuant to Section 5.02(g), any such Principal Distribution
Amount remaining after application pursuant to Sections 5.02(e)(ii)(A) through
(D) above.
(iii) On
each
Distribution Date (a) on or after the Pool 3-4 Stepdown Date and (b) with
respect to which a Pool 3-4 Trigger Event is not in effect, the Principal
Distribution Amount for Pool 3 and Pool 4 for such date will be distributed
in
the following order of priority:
(A)
(a) so
long as any of the Group II Subordinate Certificates are outstanding, to the
Pool 3 Senior Certificates (other than the Class 3-AX Certificates) and to
the
Pool 4 Senior Certificates (other than the Class 4-AX Certificates), in each
case in accordance with the priorities set forth in Section 5.02(e)(i) and
5.02(e)(ii), concurrently by Principal Allocation Percentage, in an amount
equal
to the lesser of (x) the Principal Distribution Amount for Pool 3 or Pool 4,
as
applicable, for such Distribution Date and (y) the Pool 3 Senior Principal
Distribution Amount or the Pool 4 Senior Principal Distribution Amount, as
applicable, (allocated by Principal Allocation Percentage) for such Distribution
Date until the Class Principal Amount of each such Class has been reduced to
zero; or (b) otherwise to the Pool 3 Senior Certificates and Pool 4 Senior
Certificates (other than the Class 3-AX and Class 4-AX Certificates),
concurrently by Principal Allocation Percentage, (in each case in accordance
with Section 5.02(e)(i) and 5.02(e)(ii)), the Principal Distribution Amount
for
Pool 3 or Pool 4, as applicable, for such Distribution Date;
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(B) to
the
Certificate Insurer, any unreimbursed Insured Payments with respect to the
Class
3-A2 and Class 4-A3 Certificates, plus all amounts due to the Certificate
Insurer under the Commitment Letter, together with interest thereon at the
rate
specified in the Commitment Letter, to the extent not paid pursuant to Section
5.02(c);
(C) to
the
Class M1-II Certificates, an amount equal to the lesser of (x) the excess of
(a)
the Principal Distribution Amount for Pool 3 and Pool 4 for such Distribution
Date over (b) the amount distributed to the Group II Senior Certificates and
the
Certificate Insurer on such Distribution Date pursuant to clauses (A) and (B)
above and (y) the M1-II Principal Distribution Amount for such Distribution
Date, until the Class Principal Amount of such Class has been reduced to
zero;
(D) to
the
Class M2-II Certificates, an amount equal to the lesser of (x) the excess of
(a)
the Principal Distribution Amount for Pool 3 and Pool 4 for such Distribution
Date over (b) the amount distributed to the Group II Senior Certificates and
the
Certificate Insurer and the Class M1-II Certificates on such Distribution Date
pursuant to clauses (A) through (C) above and (y) the M2-II Principal
Distribution Amount for such Distribution Date, until the Class Principal Amount
of such Class has been reduced to zero;
(E) to
the
Class M3-II Certificates, an amount equal to the lesser of (x) the excess of
(a)
the Principal Distribution Amount for Pool 3 and Pool 4 for such Distribution
Date over (b) the amount distributed to the Group II Senior Certificates and
the
Certificate Insurer and the Class M1-II and Class M2-II Certificates on such
Distribution Date pursuant to clauses (A) through (D) above and (y) the M3-II
Principal Distribution Amount for such Distribution Date, until the Class
Principal Amount of such Class has been reduced to zero;
(F) to
the
Class M4-II Certificates, an amount equal to the lesser of (x) the excess of
(a)
the Principal Distribution Amount for Pool 3 and Pool 4 for such Distribution
Date over (b) the amount distributed to the Group II Senior Certificates and
the
Certificate Insurer and the Class M1-II, Class M2-II and Class M3-II
Certificates on such Distribution Date pursuant to clauses (A) through (E)
above
and (y) the M4-II Principal Distribution Amount for such Distribution Date,
until the Class Principal Amount of such Class has been reduced to
zero;
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(G) to
the
Class M5-II Certificates, an amount equal to the lesser of (x) the excess of
(a)
the Principal Distribution Amount for Pool 3 and Pool 4 for such Distribution
Date over (b) the amount distributed to the Group II Senior Certificates and
the
Certificate Insurer and the Class M1-II, Class M2-II, Class M3-II and Class
M4-II Certificates on such Distribution Date pursuant to clauses (A) through
(F)
above and (y) the M5-II Principal Distribution Amount for such Distribution
Date, until the Class Principal Amount of such Class has been reduced to
zero;
(H) to
the
Class M6-II Certificates, an amount equal to the lesser of (x) the excess of
(a)
the Principal Distribution Amount for Pool 3 and Pool 4 for such Distribution
Date over (b) the amount distributed to the Group II Senior Certificates and
the
Certificate Insurer and the Class M1-II, Class M2-II, Class M3-II, Class M4-II
and Class M5-II Certificates on such Distribution Date pursuant to clauses
(A)
through (G) above and (y) the M6-II Principal Distribution Amount for such
Distribution Date, until the Class Principal Amount of such Class has been
reduced to zero;
(I) to
the
Class M7-II Certificates, an amount equal to the lesser of (x) the excess of
(a)
the Principal Distribution Amount for Pool 3 and Pool 4 for such Distribution
Date over (b) the amount distributed to the Group II Senior Certificates and
the
Certificate Insurer and the Class M1-II, Class M2-II, Class M3-II, Class M4-II,
Class M5-II and Class M6-II Certificates on such Distribution Date pursuant
to
clauses (A) through (H) above and (y) the M7-II Principal Distribution Amount
for such Distribution Date, until the Class Principal Amount of such Class
has
been reduced to zero;
(J) to
the
Class M8-II Certificates, an amount equal to the lesser of (x) the excess of
(a)
the Principal Distribution Amount for Pool 3 and Pool 4, for such Distribution
Date over (b) the amount distributed to the Group II Senior Certificates and
the
Certificate Insurer and the Class M1-II, Class M2-II, Class M3-II, Class M4-II,
Class M5-II, Class M6-II and Class M7-II Certificates on such Distribution
Date
pursuant to clauses (A) through (I) above and (y) the M8-II Principal
Distribution Amount for such Distribution Date, until the Class Principal Amount
of such Class has been reduced to zero;
(K) to
the
Class M9-II Certificates, an amount equal to the lesser of (x) the excess of
(a)
the Principal Distribution Amount for Pool 3 and Pool 4 for such Distribution
Date over (b) the amount distributed to the Group II Senior Certificates and
the
Certificate Insurer and the Class M1-II, Class M2-II, Class M3-II, Class M4-II,
Class M5-II, Class M6-II, Class M7-II and Class M8-II Certificates on such
Distribution Date pursuant to clauses (A) through (J) above and (y) the M9-II
Principal Distribution Amount for such Distribution Date, until the Class
Principal Amount of such Class has been reduced to zero; and
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(L) for
application as part of the Pool 3-4 Monthly Excess Cashflow for such
Distribution Date pursuant to Section 5.02(g), any Principal Distribution Amount
remaining after application pursuant to clauses (A) through (K)
above.
In
the
event that Exchange Certificates comprising a Combination Group are exchanged
for their related Exchangeable Certificates, such Exchangeable Certificates
will
be entitled to a proportionate share of the principal distributions on each
Class of Exchange Certificates in such Combination Group. In addition,
Exchangeable Certificates will bear a proportionate share of losses and interest
shortfalls allocable to each Class of Exchange Certificates in such Combination
Group. In addition, Net Negative Amortization allocable to the Class 4-A1
Underlying Interest shall be accounted for as allocable between the Classes
within each Combination Group, first to such Class that is not a Pool 4
Interest-Only Exchangeable Certificate, and second to such Class that is a
Pool
4 Interest-Only Exchangeable Certificate, in each case up to the amount of
current interest accrued on the REMIC regular interests represented thereby.
Any
such allocation to a Pool 4 Interest-Only Exchangeable Certificate shall be
accounted for as a principal entitlement accruing interest at the Certificate
Interest Rate of the Class 4-A1 Certificates.
(f) Any
Pool
1-2 Monthly Excess Cashflow will, on each Distribution Date, after distributions
are made pursuant to Section 5.02(h), be distributed in the following order
of
priority:
(i) pro
rata,
to the
Group I Senior Certificates, Current Interest and Carryforward Interest for
such
Classes for such Distribution Date, to the extent unpaid, pursuant to
5.02(b)(iv)(A) above, and sequentially to the Group I Subordinate Certificates
Current Interest and Carryforward Interest for such Classes for such
Distribution Date, to the extent unpaid, pursuant to 5.02(b)(iv)(B)
above;
(ii) for
each
Distribution Date occurring (a) before the Pool 1-2 Stepdown Date or (b) on
or
after the Pool 1-2 Stepdown Date but for which a Pool 1-2 Trigger Event is
in
effect, then until the aggregate Certificate Principal Amount of the Group
I
Certificates equals the Pool 1-2 Target Amount for such Distribution Date,
in
the following order of priority:
(A) pro
rata,
based
upon the Senior Proportionate Percentage, after giving effect to principal
distributions on such Distribution Date, to the Group I Senior Certificates,
in
each case in accordance with Section 5.02(d)(i), in reduction of their
respective Class Principal Amounts, until the Class Principal Amount of each
such Class has been reduced to zero; and
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(B) to
the
Group I Subordinate Certificates, in accordance with the Group I Subordinate
Priority, until the Class Principal Amount of each such Class has been reduced
to zero;
(iii) for
each
Distribution Date occurring on or after the Pool 1-2 Stepdown Date and for
which
a Pool 1-2 Trigger Event is not in effect, in the following order of
priority:
(A) pro
rata,
based
upon the Senior Proportionate Percentage, after giving effect to principal
distributions on such Distribution Date, to the Group I Senior Certificates,
in
each case in accordance with Section 5.02(d)(i), in reduction of their
respective Class Principal Amounts, until the aggregate Class Principal Amount
of the Group I Senior Certificates, after giving effect to distributions on
such
Distribution Date, equals the Pool 1-2 Senior Target Amount;
(B) to
the
Class M1-I Certificates, in reduction of their Class Principal Amount, until
the
aggregate Class Principal Amount of the Group I Senior Certificates and the
Class M1-I Certificates, after giving effect to distributions on such
Distribution Date, equals the M1-I Target Amount;
(C) to
the
Class M2-I Certificates, in reduction of their Class Principal Amount, until
the
aggregate Class Principal Amount of the Group I Senior Certificates and the
Class M1-I and Class M2-I Certificates, after giving effect to distributions
on
such Distribution Date, equals the M2-I Target Amount;
(D) to
the
Class M3-I Certificates, in reduction of their Class Principal Amount, until
the
aggregate Class Principal Amount of the Group I Senior Certificates and the
Class M1-I, Class M2-I and Class M3-I Certificates, after giving effect to
distributions on such Distribution Date, equals the M3-I Target
Amount;
(E) to
the
Class M4-I Certificates, in reduction of their Class Principal Amount, until
the
aggregate Class Principal Amount of the Group I Senior Certificates and the
Class M1-I, Class M2-I, Class M3-I and Class M4-I Certificates, after giving
effect to distributions on such Distribution Date, equals the M4-I Target
Amount;
(F) to
the
Class M5-I Certificates, in reduction of their Class Principal Amount, until
the
aggregate Class Principal Amount of the Group I Senior Certificates and the
Class M1-I, Class M2-I, Class M3-I, Class M4-I and Class M5-I Certificates,
after giving effect to distributions on such Distribution Date, equals the
M5-I
Target Amount;
(G) to
the
Class M6-I Certificates, in reduction of their Class Principal Amount, until
the
aggregate Class Principal Amount of the Group I Senior Certificates and the
Class M1-I, Class M2-I, Class M3-I, Class M4-I, Class M5-I and Class M6-I
Certificates, after giving effect to distributions on such Distribution Date,
equals the M6-I Target Amount;
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(H) to
the
Class M7-I Certificates, in reduction of their Class Principal Amount, until
the
aggregate Class Principal Amount of the Group I Senior Certificates and the
Class M1-I, Class M2-I, Class M3-I, Class M4-I, Class M5-I, Class M6-I and
Class
M7-I Certificates, after giving effect to distributions on such Distribution
Date, equals the M7-I Target Amount;
(I) to
the
Class M8-I Certificates, in reduction of their Class Principal Amount, until
the
aggregate Class Principal Amount of the Group I Senior Certificates and the
Class M1-I, Class M2-I, Class M3-I, Class M4-I, Class M5-I, Class M6-I, Class
M7-I and Class M8-I Certificates, after giving effect to distributions on such
Distribution Date, equals the M8-I Target Amount; and
(J) to
the
Class M9-I Certificates, in reduction of their Class Principal Amount, until
the
aggregate Class Principal Amount of the Group I Senior Certificates and the
Class M1-I, Class M2-I, Class M3-I, Class M4-I, Class M5-I, Class M6-I, Class
M7-I, Class M8-I and Class M9-I Certificates, after giving effect to
distributions on such Distribution Date, equals the M9-I Target
Amount;
(iv) to
the
Pool 1-2 Basis Risk Reserve Fund, the amount of any Pool 1-2 Basis Risk Payment
and then from the Pool 1-2 Basis Risk Reserve Fund, in the following order
of
priority:
(A) from
any
proceeds received under the Interest Rate Cap Agreement, first, to the Group
I
Senior Certificates, any Basis Risk Shortfalls and Unpaid Basis Risk Shortfalls
for each such class and such Distribution Date, pro rata in accordance with
such
shortfalls, and second, to the C-X Component of the Class X-I Certificates
on
such Distribution Date;
(B) pro
rata,
to the
Group I Senior Certificates, the amount of any Basis Risk Shortfalls and Unpaid
Basis Risk Shortfalls for each such Class and such Distribution Date, in
proportion to such shortfalls, to the extent not paid pursuant to Sections
5.02(f)(iv)(A) and 5.02(h);
(C) to
the
Group I Subordinate Certificates (other than the Class M8-I and Class M9-I
Certificates), in accordance with the Group I Subordinate Priority, any
applicable Basis Risk Shortfalls and Unpaid Basis Risk Shortfalls for each
such
Class and such Distribution Date;
(D)
for addition to amounts distributable pursuant to
Section 5.02(f)(vi), and amounts remaining in the Pool 1-2 Basis Risk Reserve
Funs in excess of amounts required to be on deposit therein after satisfying
clauses (A) through (C) above for such Distribution Date;
(v)
(a)
first,
in
proportion to their respective Deferred Amounts, to the Group I Senior
Certificates and (b) second,
to the
Group I Subordinate Certificates, in accordance with the Group I Subordinate
Priority, any Deferred Amount for each such Class and such Distribution
Date;
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(vi) to
the
Supplemental Interest Trust for distribution pursuant to Section 5.02(h)(viii)
and 5.02(h)(ix); and
(vii) to
the
Residual Certificate, any remaining amount.
(g) Any
Pool
3-4 Monthly Excess Cashflow will, on each Distribution Date, be distributed
in
the following order of priority:
(i) to
the
extent unpaid pursuant to Section 5.02(c), sequentially:
(1) pro
rata,
to the
Group II Senior Certificates, Current Interest and Carryforward Interest for
such Classes for such Distribution Date;
(2) to
the
Certificate Insurer any unreimbursed Insured Payments plus all amounts due
to
the Certificate Insurer under the Commitment Letter, together with interest
thereon at the rate specified in the Commitment Letter;
(3) sequentially
to the Group II Subordinate Certificates Current Interest and Carryforward
Interest for such Classes for such Distribution Date;
(ii) for
each
Distribution Date occurring (a) before the Pool 3-4 Stepdown Date or (b) on
or
after the Pool 3-4 Stepdown Date but for which a Pool 3-4 Trigger Event is
in
effect, then until the aggregate Certificate Principal Amount of the Group
II
Certificates (other than the Class 3-AX and Class 4-AX Certificates) equals
the
Pool 3-4 Target Amount for such Distribution Date, in the following order of
priority:
(A) after
giving effect to principal distributions on such Distribution Date, to the
Group
II Senior Certificates (other than the Class 3-AX and Class 4-AX Certificates),
in each case in accordance with Section 5.02(e)(i) and 5.02(e)(ii), in reduction
of their respective Class Principal Amounts, until the Class Principal Amount
of
each such Class has been reduced to zero; and
(B) to
the
Certificate Insurer any unreimbursed Insured Payments plus all amounts due
to
the Certificate Insurer under the Commitment Letter, together with interest
thereon at the rate specified in the Commitment Letter;
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(C) to
the
Group II Subordinate Certificates, in accordance with the Group II Subordinate
Priority, until the Class Principal Amount of each such Class has been reduced
to zero;
(iii) for
each
Distribution Date occurring on or after the Pool 3-4 Stepdown Date and for
which
a Pool 3-4 Trigger Event is not in effect, in the following order of
priority:
(A) pro
rata,
based
upon the Senior Proportionate Percentage, after giving effect to principal
distributions on such Distribution Date, to the Group II Senior Certificates
(other than the Class 3-AX and Class 4-AX Certificates), in each case in
accordance with Sections 5.02(e)(i) and 5.02(e)(ii), in reduction of their
respective Class Principal Amounts, until the aggregate Class Principal Amount
of such Group II Senior Certificates (other than the Class 3-AX and Class 4-AX
Certificates), after giving effect to distributions on such Distribution Date,
equals the Pool 3-4 Senior Target Amount;
(B) any
remaining unreimbursed Insured Payments plus all amounts due to the Certificate
Insurer under the Commitment Letter, together with interest thereon at the
rate
specified in the Commitment Letter;
(C) to
the
Class M1-II Certificates, in reduction of their Class Principal Amount, until
the aggregate Class Principal Amount of the Group II Senior Certificates and
the
Class M1-II Certificates, after giving effect to distributions on such
Distribution Date, equals the M1-II Target Amount;
(D) to
the
Class M2-II Certificates, in reduction of their Class Principal Amount, until
the aggregate Class Principal Amount of the Group II Senior Certificates and
the
Class M1-II and Class M2-II Certificates, after giving effect to distributions
on such Distribution Date, equals the M2-II Target Amount;
(E) to
the
Class M3-II Certificates, in reduction of their Class Principal Amount, until
the aggregate Class Principal Amount of the Group II Senior Certificates and
the
Class M1-II, Class M2-II and Class M3-II Certificates, after giving effect
to
distributions on such Distribution Date, equals the M3-II Target
Amount;
(F) to
the
Class M4-II Certificates, in reduction of their Class Principal Amount, until
the aggregate Class Principal Amount of the Group II Senior Certificates and
the
Class M1-II, Class M2-II, Class M3-II and Class M4-II Certificates, after giving
effect to distributions on such Distribution Date, equals the M4-II Target
Amount;
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(G) to
the
Class M5-II Certificates, in reduction of their Class Principal Amount, until
the aggregate Class Principal Amount of the Group II Senior Certificates and
the
Class M1-II, Class M2-II, Class M3-II, Class M4-II and Class M5-II Certificates,
after giving effect to distributions on such Distribution Date, equals the
M5-II
Target Amount;
(H) to
the
Class M6-II Certificates, in reduction of their Class Principal Amount, until
the aggregate Class Principal Amount of the Group II Senior Certificates and
the
Class M1-II, Class M2-II, Class M3-II, Class M4-II, Class M5-II and Class M6-II
Certificates, after giving effect to distributions on such Distribution Date,
equals the M6-II Target Amount;
(I) to
the
Class M7-II Certificates, in reduction of their Class Principal Amount, until
the aggregate Class Principal Amount of the Group II Senior Certificates and
the
Class M1-II, Class M2-II, Class M3-II, Class M4-II, Class M5-II, Class M6-II
and
Class M7-II Certificates, after giving effect to distributions on such
Distribution Date, equals the M7-II Target Amount;
(J) to
the
Class M8-II Certificates, in reduction of their Class Principal Amount, until
the aggregate Class Principal Amount of the Group II Senior Certificates and
the
Class M1-II, Class M2-II, Class M3-II, Class M4-II, Class M5-II, Class M6-II,
Class M7-II and Class M8-II Certificates, after giving effect to distributions
on such Distribution Date, equals the M8-II Target Amount; and
(K) to
the
Class M9-II Certificates, in reduction of their Class Principal Amount, until
the aggregate Class Principal Amount of the Group II Senior Certificates and
the
Class M1-II, Class M2-II, Class M3-II, Class M4-II, Class M5-II, Class M6-II,
Class M7-II, Class M8-II and Class M9-II Certificates, after giving effect
to
distributions on such Distribution Date, equals the M9-II Target
Amount;
(iv) to
the
Group II Senior Certificates, pro rata by need, then to the Group II Subordinate
Certificates, sequentially, any Deferred Amounts;
(v) to
the
Pool 3-4 Basis Risk Reserve Fund, the amount of any Pool 3-4 Basis Risk Payment
and then from the Pool 3-4 Basis Risk Reserve Fund, in the following order
of
priority:
(A) pro
rata,
to the
Group II Senior Certificates, the amount of any Basis Risk Shortfalls and Unpaid
Basis Risk Shortfalls for each such Class and such Distribution Date, in
proportion to such shortfalls;
(B) to
the
Group II Subordinate Certificates, in accordance with the Group II Subordinate
Priority, any applicable Basis Risk Shortfalls and Unpaid Basis Risk Shortfalls
for each such Class and such Distribution Date; and
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(C) to
the
Class X-II Certificates, any amounts remaining in the Pool 3-4 Basis Risk
Reserve Fund in excess of amounts required to be on deposit therein after
satisfying priorities (A) and (B) above for such Distribution Date;
(vi) to
the
Class X-II Certificates, the Class X-II Distributable Amount;
(vii) to
the
Residual Certificate, any remaining amount.
(h) On
each
Distribution Date (or, with respect to clauses (i), (ii) and (viii) below,
on
the related Swap Payment Date), the Trustee shall distribute the Supplemental
Interest Trust Amount, together with any investment earnings on deposit in
the
Supplemental Interest Trust Account, before distributions are made pursuant
to
Section 5.02(f), for such date as follows:
(i) to
the
Swap Counterparty, any Net Swap Payment owed to the Swap Counterparty pursuant
to the Swap Agreement for the related Distribution Date;
(ii) to
the
Swap Counterparty, any unpaid Swap Termination Payment not due to a Swap
Counterparty Trigger Event owed to the Swap Counterparty pursuant to the Swap
Agreement;
(iii) to
the
Group I Senior Certificates, Current Interest and any Carryforward Interest
for
each such Class for such Distribution Date, in the priority described in Section
5.02(b)(iv);
(iv) to
the
Group I Senior Certificates, an amount equal to the lesser of (A) the remaining
amount available for distribution and (B) the product of (i) the applicable
Scheduled Notional Amount, (ii) the excess, if any, of (x) the lesser of (1)
1-Month LIBOR and (2) 6.720% over (y) the applicable Rate of Payment for such
Distribution Date and (iii) a fraction, the numerator of which is the actual
number of days in the related Accrual Period and the denominator of which is
360, to pay certain amounts necessary to maintain the Pool 1-2
Overcollateralization Target Amount set forth in Sections 5.02(f)(ii) and
5.02(f)(iii);
(v) to
the
Group I Senior Certificates, any Basis Risk Shortfalls and Unpaid Basis Risk
Shortfalls for each such Class and for such Distribution Date, for application
pursuant to the priorities set forth in Section 5.02(f)(iv)(A);
(vi) in
proportion to their respective Deferred Amounts, to the Group I Senior
Certificates, any Deferred Amount for each such Class and such Distribution
Date;
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(vii) if
applicable, for application to the purchase of a replacement interest rate
swap
agreement;
(viii) to
the
Swap Counterparty, any unpaid Swap Termination Payment triggered by a Swap
Counterparty Trigger Event owed to the Swap Counterparty pursuant to the Swap
Agreement; and
(ix) to
the
X-I Component of the Class X-I Certificates, the X-I Component Distributable
Amount for such Distribution Date and to the S-X Component of the Class X-I
Certificates any remaining Supplemental Interest Trust Amount.
Notwithstanding
the foregoing, the sum of the amounts distributed on all Distribution Dates
pursuant to Sections 5.02(h)(iv) and Section 5.02(h)(vi) shall not exceed the
aggregate amount of Realized Losses on Pool 1 Mortgage Loans, Pool 1C Mortgage
Loans and Pool 2 Mortgage Loans incurred from the Cut-off Date through the
last
day of the related Collection Period.
(i) 1. On
each
Distribution Date on and prior to the X-I Component Account Termination Date,
the Trustee shall withdraw the Class C-I Distributable Amount for such
Distribution Date from the X-I Component Account, pursuant to Section 5.12
herein, and shall distribute such amount to the Class C-I
Certificates.
(2) On
each
Distribution Date on or prior to the X-I Component Account Termination Date,
the
Trustee shall withdraw amounts on deposit in the X-I Component Account and
distribute such amounts to the Class X-I Certificates, an amount equal to the
excess, if any, of the sum of Realized Losses attributable to the Class C-I
Mortgage Loans over the sum of all amounts distributed pursuant to this Section
5.02(i)(2) on prior Distribution Dates to the Class X-I
Certificates.
(j) 2. On
each
Distribution Date on and prior to the Class X-II Account Termination Date,
the
Trustee shall withdraw the Class C-II Distributable Amount for such Distribution
Date from the Class X-II Account, pursuant to Section 5.12 herein, and shall
distribute such amount to the Class C-II Certificates.
(2) On
each
Distribution Date on or prior to the Class X-II Account Termination Date, the
Trustee shall withdraw amounts on deposit in the Class X-II Account and
distribute such amounts to the Class X-II Certificates, an amount equal to
the
excess, if any, of the sum of Realized Losses attributable to the Class C-II
Mortgage Loans over the sum of all amounts distributed pursuant to this Section
5.02(j)(2) on prior Distribution Dates to the Class X-II
Certificates.
(k) On
each
Distribution Date, the Trustee (or Paying Agent, as applicable) shall distribute
(i) to the Holders of the Class AP-I Certificates any Prepayment Premiums paid
by borrowers upon voluntary full or partial prepayment of the Pool 1, Pool
1C
and Pool 2 Mortgage Loans, (ii) to the Holders of the Class 3-AP Certificates
any Prepayment Premiums paid by borrowers upon voluntary full or partial
prepayment of the Pool 3 Mortgage Loans and (iii) to the Holders of the Class
4-AP Certificates any Prepayment Premiums paid by borrowers upon voluntary
full
or partial prepayment of the Pool 4 Mortgage Loans.
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(l) On
the
Closing Date, the Trustee shall establish and maintain in its name, in trust
for
the benefit of the holders of the Group I Certificates, an Interest Rate Cap
Account. The Trustee shall deposit all amounts received on the Interest Rate
Cap
Agreement into the Interest Rate Cap Account. The Interest Rate Cap Account
shall be 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 held pursuant to
this
Agreement. On each Distribution Date, the Trustee shall distribute the amounts
in the Interest Rate Cap Account pursuant to Section 5.02(f)(iv)
hereof.
(m) The
Depositor shall cause the Trustee to enter into the Deferred Interest Cap
Agreements. The Trustee’s rights to receive certain proceeds of each Deferred
Interest Cap Agreement as provided in each Deferred Interest Cap Agreement
shall
be rights of the Trustee under this Agreement, shall be an asset of the Class
4-A1 Grantor Trust, Class 4-A1A Grantor Trust, Class 4-A2B Grantor Trust and
Class 4-A3 Grantor Trust, as applicable, and shall not be an asset of the Trust
Fund nor of any REMIC. The Trustee shall deposit any amounts received from
time
to time from the Cap Provider with respect to each Deferred Interest Cap
Agreement into the applicable Deferred Interest Cap Account.
Funds
in
the Interest Rate Cap Account and Deferred Interest Cap Accounts shall remain
uninvested. For federal income tax purposes, each Class of Grantor Trust
Certificates (other than any Exchange Class) and each of the Underlying 4-A1
REMIC Certificates shall each evidence a beneficial interest in the Deferred
Interest Cap Agreement, or portion thereof, related to such Class and the
Deferred Interest Cap Account, or portion thereof, related to such Deferred
Interest Cap Agreement. For federal income tax purposes, (i) each Underlying
Interest, (ii) the related Deferred Interest Cap Agreement, (iii) the related
Deferred Interest Cap Account and (iv) the related Grantor Trust Certificate
Account shall be treated as comprising a “grantor trust” within the meaning of
the Grantor Trust Provisions for the benefit of the holders of the related
Grantor Trust Certificates.
(n) On
each
Distribution Date, the Trustee, as holder of the Underlying Interests, shall
deposit all distributions received on those Underlying Interests for that
Distribution Date into the related Grantor Trust Certificate Account. On each
Distribution Date, the Trustee will withdraw the Grantor Trust Available Funds
for each Grantor Trust established pursuant to Section 5.02(m) and such amounts
will be distributed in the following priority:
(i) to
the
Cap Provider, interest, if any, on the Cap Deferred Interest Amount due to
the
Cap Provider from the applicable Grantor Trust Available Funds;
(ii) to
the
related Grantor Trust Certificates, the Current Interest and any Carryforward
Interest for such Distribution Date;
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(iii) to
the
Cap Provider, the Cap Deferred Interest Amount for such Distribution Date from
the applicable Grantor Trust Available Funds;
(iv) to
the
related Grantor Trust Certificates, any principal distributions received from
the Class 4-A1 Underlying Interest (in the case of the Class 4-A1 Certificates),
Class 4-A2A Underlying Interest (in the case of the Class 4-A2A Certificates),
Class 4-A2B Underlying Interest (in the case of the Class 4-A2B Certificates)
and Class 4-A3 Underlying Interest (in the case of the Class 4-A3 Certificates),
in reduction of the Class Principal Amount of such Grantor Trust Certificates,
until the Class Principal Amount thereof has been reduced to zero;
and
(v) to
the
Cap Provider, any termination payments (as set forth in the related Deferred
Interest Cap Agreement) from the applicable Grantor Trust Available
Funds.
(o) Any
Net
Negative Amortization on Mortgage Group I will be allocated to the related
Senior Certificates and the related Subordinate Certificates (other than the
Class M8-I and Class M9-I Certificates), pro rata, according to the Class
Principal Amount of each such class of Senior Certificates or Apportioned
Principal Balance of the related Subordinate Certificates, in reduction of
the
amount of interest otherwise distributable to such classes of Certificates;
provided, however, that to the extent the amount of Net Negative Amortization
allocated to such Certificates exceeds the amount of Current Interest accrued
on
the Related REMIC I-2 Interest of such Senior Certificates or Apportioned
Principal Balance thereof, in the case of the related Subordinate Certificates
(other than the Class M8-I and Class M9-I Certificates), then such excess Net
Negative Amortization shall be allocated to the Class X-I to the extent payments
would otherwise be made to the Class X-I Certificates in respect of the
Uncertificated Class X-I Interest, and then, if necessary, among such related
Certificates (other than the Class M8-I and Class M9-I Certificates) in
proportion to, and up to, the amount of any remaining interest otherwise
distributable on the Related REMIC I-2 Interest of such related Certificates.
Any
Net
Negative Amortization on Mortgage Group II will be allocated to the related
Senior Certificates (other than the Class 3-AX and Class 4-AX Certificates)
and
the related Subordinate Certificates, pro rata, according to the Class Principal
Amount of each such class of Senior Certificates or Apportioned Principal
Balance of the related Subordinate Certificates, in reduction of the amount
of
interest otherwise distributable to such classes of Certificates; provided,
however, that to the extent the amount of Net Negative Amortization allocated
to
such Certificates exceeds the amount of Current Interest accrued on the REMIC
regular interests represented by such Senior Certificates or Apportioned
Principal Balance thereof, in the case of the related Subordinate Certificates,
then such excess Net Negative Amortization shall be allocated to the Class
X-II
Certificates to the extent payments would otherwise be made to the Class X-II
Certificates in respect of the Uncertificated Class X-II Interest, and then,
if
necessary, among such related Certificates in proportion to, and up to, the
amount of any remaining interest otherwise distributable on the REMIC regular
interests represented by such related Senior Certificates or Apportioned
Principal Balance in the case of the related Subordinate Certificates.
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The
amount of the reduction of Current Interest distributable to each Class of
Certificates attributable to Net Negative Amortization will be added to the
Class Principal Amount of that Class (other than the Grantor Trust Certificates,
unless there has been a default in payment under the related Deferred Interest
Cap Agreement).
(p) On
each
Distribution Date, an amount equal to the aggregate of the FPD Premiums and
the
EPD Premiums collected during the preceding Prepayment Period shall be
distributed to the X-I Component of the Class X-I Certificates.
Section
5.03. Allocation
of Losses.
(a) On
each
Distribution Date, the aggregate Class Principal Amount of the Certificates
shall be reduced by the amount of any Pool 1-2 Applied Loss Amount for such
date, in the following order of priority:
(i) to
the
Class M9-I Certificates, until the Class Principal Amount of such Class has
been
reduced to zero;
(ii) to
the
Class M8-I Certificates, until the Class Principal Amount of such Class has
been
reduced to zero;
(iii) to
the
Class M7-I Certificates, until the Class Principal Amount of such Class has
been
reduced to zero;
(iv) to
the
Class M6-I Certificates, until the Class Principal Amount of such Class has
been
reduced to zero;
(v) to
the
Class M5-I Certificates, until the Class Principal Amount of such Class has
been
reduced to zero;
(vi) to
the
Class M4-I Certificates, until the Class Principal Amount of such Class has
been
reduced to zero;
(vii) to
the
Class M3-I Certificates, until the Class Principal Amount of such Class has
been
reduced to zero;
(viii) to
the
Class M2-I Certificates, until the Class Principal Amount of such Class has
been
reduced to zero;
(ix) to
the
Class M1-I Certificates, until the Class Principal Amount of such Class has
been
reduced to zero; and
(x) concurrently,
on the basis of Realized Losses on the related Mortgage Pool, (a) sequentially,
first, to the Class 1-A3 Certificates, second, to the Class 1-A2 Certificates
and third, to the Class 1-A1 Certificates, (b) sequentially, first, to the
Class
1C-A3 Certificates, second, to the Class 1C-A2 Certificates and third, to the
Class 1C-A1 Certificates and (c) sequentially, first, to the Class 2-A3
Certificates, second, to the Class 2-A2 Certificates and third, to the Class
2-A1 Certificates, in each case until their respective Class Principal Amounts
have been reduced to zero.
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(b) On
each
Distribution Date, the aggregate Class Principal Amount of the Certificates
shall be reduced by the amount of any Pool 3-4 Applied Loss Amount for such
date, in the following order of priority:
(i) to
the
Class M9-II Certificates, until the Class Principal Amount of such Class has
been reduced to zero;
(ii) to
the
Class M8-II Certificates, until the Class Principal Amount of such Class has
been reduced to zero;
(iii) to
the
Class M7-II Certificates, until the Class Principal Amount of such Class has
been reduced to zero;
(iv) to
the
Class M6-II Certificates, until the Class Principal Amount of such Class has
been reduced to zero;
(v) to
the
Class M5-II Certificates, until the Class Principal Amount of such Class has
been reduced to zero;
(vi) to
the
Class M4-II Certificates, until the Class Principal Amount of such Class has
been reduced to zero;
(vii) to
the
Class M3-II Certificates, until the Class Principal Amount of such Class has
been reduced to zero;
(viii) to
the
Class M2-II Certificates, until the Class Principal Amount of such Class has
been reduced to zero;
(ix) to
the
Class M1-II Certificates, until the Class Principal Amount of such Class has
been reduced to zero; and
(x) (a)
sequentially, first, to the Class 3-A2 Certificates and second, to the Class
3-A1 Certificates and (b) sequentially, first, to the Class 4-A3 Underlying
Interest, second, pro rata, to the Class 4-A2A Underlying Interest and Class
4-A2B Underlying Interest and third, to the Class 4-A1 Underlying Interest,
in
each case until their respective Class Principal Amounts have been reduced
to
zero; provided, however, that any losses allocated to the Class 3-A2 and Class
4-A3 Certificates will be covered by the Certificate Insurance
Policy.
Section
5.04. Advances
by Master Servicer, Servicers and Trustee.
(a) Subject
to Section 9.07, Advances shall be made in respect of each Determination Date
as
provided herein. If, on any Determination Date, any Servicer (or the Master
Servicer, with regard to the Mortgage Loans serviced by GMACM, GreenPoint and
SunTrust) determines that any Scheduled Payments due during the related
Collection Period (other than Balloon Payments) and relating to any of the
Mortgage Loans have not been received, such Servicer (or the Master Servicer,
with regard to the Mortgage Loans serviced by GMACM, GreenPoint and SunTrust)
shall advance such amount to the extent provided in the related Servicing
Agreement. If the applicable Servicer fails to remit Advances required to be
made under the related Servicing Agreement, the Master Servicer shall itself
make, or shall cause the successor Servicer to make, such Advance; provided,
however, that required Advances remitted by the applicable Servicer or the
Master Servicer may be reduced by an amount, if any, to be set forth in an
Officer’s Certificate to be delivered to the Trustee on such Determination Date,
which if advanced the Master Servicer or the applicable Servicer has determined
would not be recoverable from amounts received with respect to such Mortgage
Loan, including late payments, Liquidation Proceeds, Insurance Proceeds or
otherwise. If the Master Servicer determines that an Advance is required, it
shall on the Deposit Date immediately following such Determination Date either
(i) remit to the Trustee from its own funds (or funds advanced by the applicable
Servicer) for deposit in the Certificate Account immediately available funds
in
an amount equal to such Advance, (ii) cause to be made an appropriate entry
in
the records of the Collection Account that funds in such account being held
for
future distribution or withdrawal have been, as permitted by this Section 5.04,
used by the Master Servicer to make such Advance, and remit such immediately
available funds to the Trustee for deposit in the Certificate Account or (iii)
make Advances in the form of any combination of clauses (i) and (ii) aggregating
the amount of such Advance. Any funds being held in the Collection Account
for
future distribution to Certificateholders and so used shall be replaced by
the
Master Servicer from its own funds by remittance to the Trustee for deposit
in
the Certificate Account on or before any future Deposit Date to the extent
that
funds in the Certificate Account on such Deposit Date shall be less than
payments to Certificateholders required to be made on the related Distribution
Date. The Master Servicer and the Servicers shall be entitled to be reimbursed
from the Collection Account for all Advances made by it as provided in Section
4.02. Notwithstanding anything to the contrary herein, in the event the Master
Servicer determines in its reasonable judgment that an Advance is
non-recoverable, the Master Servicer shall be under no obligation to make such
Advance. The Trustee shall be entitled to conclusively rely upon any
determination by the Master Servicer that an Advance, if made, would constitute
a non-recoverable Advance.
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(b) In
the
event that the Master Servicer or any Servicer fails for any reason to make
an
Advance required to be made pursuant to this Section 5.04 on or before the
Deposit Date, the Trustee, solely in its capacity as successor master servicer
pursuant to Section 6.14, shall, on or before the related Distribution Date,
deposit in the Certificate Account an amount equal to the excess of (a) Advances
required to be made by the Master Servicer or any Servicer that would have
been
deposited in such Certificate Account over (b) the amount of any Advance made
by
the Master Servicer or such Servicer with respect to such Distribution Date;
provided, however, that the Trustee shall be required to make such Advance
only
if it is not prohibited by law from doing so and it has determined that such
Advance would be recoverable from amounts to be received with respect to such
Mortgage Loan, including late payments, Liquidation Proceeds, Insurance
Proceeds, or otherwise. The Trustee shall be entitled to be reimbursed from
the
Certificate Account for Advances made by it pursuant to this Section 5.04 as
if
it were the Master Servicer.
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Section
5.05. Compensating
Interest Payments.
The
Master Servicer shall not be responsible for making any Compensating Interest
Payments not made by the Servicers (other than GMACM, GreenPoint and SunTrust).
Any Compensating Interest Payments made by the Servicers shall be a component
of
the Interest Remittance Amount.
Section
5.06. Pool
1-2 Basis Risk Reserve Fund and Pool 3-4 Basis Risk Reserve Fund.
(a) On
the
Closing Date, the Trustee shall establish and maintain in its name, in trust
(i)
for the benefit of the holders of the Group I Certificates, a Pool 1-2 Basis
Risk Reserve Fund and (ii) for the benefit of the holders of the Group II
Certificates, a Pool 3-4 Basis Risk Reserve Fund. The Pool 1-2 Basis Risk
Reserve Fund and Pool 3-4 Basis Risk Reserve Fund shall each be 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 held pursuant to this Agreement.
(b) [Reserved]
(c) Funds
in
the Pool 1-2 Basis Risk Reserve Fund and Pool 3-4 Basis Risk Reserve Fund shall
be invested in Eligible Investments. The Class X-I Certificates shall evidence
ownership of the Pool 1-2 Basis Risk Reserve Fund and the Class X-II
Certificates shall evidence ownership of the Pool 3-4 Basis Risk Reserve Fund
for federal income tax purposes and LBH, on behalf of the Holders thereof,
shall
direct the Trustee, in writing, as to investment of amounts on deposit therein.
LBH shall be liable for any losses incurred on such investments. In the absence
of written instructions from LBH as to the investment of funds on deposit in
the
Pool 1-2 Basis Risk Reserve Fund or Pool 3-4 Basis Risk Reserve Fund, such
funds
shall remain uninvested.
Section
5.07. Supplemental
Interest Trust.
(a) A
separate trust is hereby established (the “Supplemental Interest Trust”), the
corpus of which shall be held by the Trustee, in trust, for the benefit of
the
holders of the Certificates and the Swap Counterparty. The Trustee, as trustee
of the Supplemental Interest Trust, shall establish an account (the
“Supplemental Interest Trust Account”). The Supplemental Interest Trust Account
shall be 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 held pursuant to
this
Agreement.
(b) The
Trustee shall deposit into the Supplemental Interest Trust Account any Net
Swap
Payment required pursuant to Sections 5.02(b) and 5.02(d), any Swap Termination
Payment required pursuant to Sections 5.02(b) and 5.02(d), any amounts received
from the Swap Counterparty under the Swap Agreement and any amounts required
pursuant to Section 5.02(g)(vi), and shall distribute from the Supplemental
Interest Trust Account any Net Swap Payment required pursuant to Section
5.02(h)(i) or Swap Termination Payment required pursuant to Sections 5.02(h)(ii)
and 5.02(h)(viii).
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(c) Funds
in
the Supplemental Interest Trust Account shall be invested in Eligible
Investments. Any earnings on such amounts shall be distributed on each
Distribution Date pursuant to Section 5.02(h). The S-X Component of the Class
X-I Certificates shall evidence ownership of the Supplemental Interest Trust
Account for federal income tax purposes and the Holder thereof shall direct
the
Trustee, in writing, as to investment of amounts on deposit therein. The Class
X-I Certificateholders shall be liable for any losses incurred on such
investments. In the absence of written instructions from the Class X-I
Certificateholders as to investment of funds on deposit in the Supplemental
Interest Trust Account, such funds shall be invested in the First American
Government Obligations Fund or comparable investment vehicle. Any amounts on
deposit in the Supplemental Interest Trust Account in excess of the Supplemental
Interest Trust Amount on any Distribution Date shall be held for distribution
pursuant to Section 5.02(h) on the following Distribution Date.
(d) Upon
termination of the Trust Fund, any amounts remaining in the Supplemental
Interest Trust Account shall be distributed pursuant to the priorities set
forth
in Sections 5.02(h).
(e) [Reserved]
(f) To
the
extent that the Supplemental Interest Trust is determined to be a separate
legal
entity from the Trustee, any obligation of the Trustee under the Swap Agreement
shall be deemed to be an obligation of the related Supplemental Interest
Trust.
Section
5.08. Rights
of Swap Counterparty.
The
Swap
Counterparty shall be deemed a third-party beneficiary of this Agreement to
the
same extent as if it were a party hereto and shall have the right, upon
designation of an “Early Termination Date” (as defined in the Swap Agreement),
to enforce its rights under this Agreement, which rights include but are not
limited to the obligation of the Trustee (A) to deposit any Net Swap Payment
required pursuant to Sections 5.02(b) and 5.02(d), and any Swap Termination
Payment required pursuant to Sections 5.02(b) and 5.02(d), into the Supplemental
Interest Trust Account, (B) to deposit any amounts required pursuant to Section
5.07(b) into the Supplemental Interest Trust Account, (C) to pay any Net Swap
Payment required pursuant to Section 5.02(h)(i) or Swap Termination Payment
required pursuant to Sections 5.02(h)(ii) and (viii) to the Swap Counterparty
and (D) to establish and maintain the Supplemental Interest Trust Account,
to
make such deposits thereto, investments therein and distributions therefrom
as
are required pursuant to Section 5.07. For the protection and enforcement of
the
provisions of this Section the Swap Counterparty shall be entitled to such
relief as can be given either at law or in equity.
Section
5.09. Termination
Receipts.
In
the
event of an “Early Termination Event” as defined under the Swap Agreement, (i)
any Swap Termination Payment made by the Swap Counterparty to the Supplemental
Interest Trust and paid pursuant to Section 5.02(h)(viii) (“Termination
Receipts”) will be deposited in a segregated non-interest bearing account which
shall be an Eligible Account established by the Trustee (the “Termination
Receipts Account”) and (ii) any amounts received from a replacement Swap
Counterparty (“Replacement Receipts”) will be deposited in a segregated
non-interest bearing account which shall be an Eligible Account established
by
the Trustee (the “Replacement Receipts Account”). The Trustee shall invest, or
cause to be invested, funds held in the Termination Receipts Account and the
Replacement Receipts Account in time deposits of the Trustee as permitted by
clause (ii) of the definition of Eligible Investments or as otherwise directed
in writing by a majority of the Certificateholders. All such investments must
be
payable on demand or mature on a Swap Payment Date or such other date as
directed by the Certificateholders. All such Eligible Investments will be made
in the name of the Trustee of the Supplemental Interest Trust (in its capacity
as such) or its nominee. All income and gain realized from any such investment
shall be deposited in the Termination Receipts Account or the Replacement
Receipts Account, as applicable, and all losses, if any, shall be borne by
the
related account.
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Unless
otherwise permitted by the Rating Agencies as evidenced in a written
confirmation, the Depositor shall arrange for replacement Swap Agreement(s)
and
the Trustee shall promptly, with the assistance and cooperation of the
Depositor, use amounts on deposit in the Termination Receipts Account, if
necessary, to enter into replacement Swap Agreement(s) which shall be executed
and delivered by the Trustee on behalf of the Supplemental Interest Trust upon
receipt of written confirmation from each Rating Agency that such replacement
Swap Agreement(s) will not result in the reduction or withdrawal of the rating
of any outstanding Class of Certificates with respect to which it is a Rating
Agency.
Amounts
on deposit in the Replacement Receipts Account shall be held for the benefit
of
the related Swap Counterparty and paid to such Swap Counterparty if the
Supplemental Interest Trust is required to make a payment to such Swap
Counterparty following an event of default or termination event with respect
to
the Supplemental Interest Trust under the related Swap Agreement. Any amounts
not so applied shall, following the termination or expiration of such Swap
Agreement, be paid to the S-X Component of the Class X-I Certificates. Neither
the Termination Receipts Account nor the Replacement Receipts Account shall
be
the asset of any REMIC.
Section
5.10. Collateral
Account.
In
the
event that the Swap Counterparty is required to post collateral pursuant to
a
downgrade event under the Swap Agreement, the Trustee, on behalf of the Trust
Fund, is hereby authorized to establish on the Closing Date, a Collateral
Account for the deposit of such monies. Funds in the Collateral Account shall
not be commingled with any other monies and shall not be invested. Funds in
the
Collateral Account will be administered pursuant to the Credit Support Annex
of
the Swap Agreement. The Collateral Account shall not be an asset of any REMIC.
On the first Distribution Date immediately following any Swap Payment Date
as to
which a shortfall exists with respect to a Net Swap Payment or a Swap
Termination Payment owed by the Swap Counterparty as a result of its failure
to
make payments pursuant to the Swap Agreement, amounts necessary to cover such
shortfall shall be removed from the Collateral Account and distributed as all
or
a portion of such Net Swap Payment or Swap Termination Payment pursuant to
Section 5.02.
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Section
5.11. Class
AP-I, Class 3-AP and 4-AP Reserve Funds.
(a) The
Trustee shall establish and maintain three segregated trust accounts that are
Eligible Accounts, which shall be titled “Class AP-I Reserve Fund, U.S. Bank
National Association, as trustee, in trust for the registered holders of Xxxxxx
XS Trust Mortgage Pass-Through Certificates, Series 2007-15N” (the “Class AP-I
Reserve Fund”), “Class 3-AP Reserve Fund, U.S. Bank National Association, as
trustee, in trust for the registered holders of Xxxxxx XS Trust Mortgage
Pass-Through Certificates, Series 2007-15N” (the “Class 3-AP Reserve Fund”) and
“Class 4-AP Reserve Fund, U.S. Bank National Association, as trustee, in trust
for the registered holders of Xxxxxx XS Trust Mortgage Pass-Through
Certificates, Series 2007-15N” (the “Class 4-AP Reserve Fund”). The Trustee
shall credit each of the Class AP-I Reserve Fund, Class 3-AP Reserve Fund and
the Class 4-AP Reserve Fund with $100 remitted for such purpose on the Closing
Date to the Trustee by LBH. Funds deposited in the Class AP-I Reserve Fund,
Class 3-AP Reserve Fund and the Class 4-AP Reserve Fund shall be held in trust
by the Trustee on behalf of the Certificateholders until distributed pursuant
to
Section 5.11(c).
(b) Funds
in
each of the Class AP-I Reserve Fund, Class 3-AP Reserve Fund and the Class
4-AP
Reserve Fund shall remain uninvested.
(c) Holder
thereof shall direct the Trustee, in writing, as to investment of amounts on
deposit therein. On the Distribution Date in September 2010, the Trustee shall
distribute $100 from the Class AP-I Reserve Fund to the Holders of the Class
AP-I Certificates. On the Distribution Date in September 2010, the Trustee
shall
distribute $100 from the Class 3-AP Reserve Fund to the Holders of the Class
3-AP Certificates. On the Distribution Date in September 2010, the Trustee
shall
distribute $100 from the Class 4-AP Reserve Fund to the Holders of the Class
4-AP Certificates.
(d) None
of
the assets of the Class P Reserve Funds shall be an asset of any of the
REMICs.
Section
5.12. Class
X-II Account and X-I Component Account.
(a) On
the
Closing Date, the Trustee shall establish and maintain in its name, in trust
for
the benefit of the holders of the Class X-I and Class X-II Certificates, the
X-I
Component Account and the Class X-II Account, respectively. No later than the
first date on which any NIM Securities are issued, the Depositor may deposit
a
dollar amount into the X-I Component Account and the Class X-II Account. The
X-I
Component Account and the Class X-II Account shall be Eligible Accounts, 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 held pursuant to this Agreement.
(b) Funds
in
the X-I Component Account and the Class X-II Account may be invested in Eligible
Investments having fixed maturities described in clauses (i), (iv), (v) or
(vii)
of the definition thereof by the Trustee at the direction of the holders of
the
Class C-I and Class C-II Certificates, respectively, maturing on or prior to
the
next succeeding Distribution Date. No Eligible Investments shall be acquired
or
disposed of for the primary purpose of recognizing gains or decreasing losses
from market value changes. Any funds held in the X-I Component Account and
the
Class X-II Account that are not invested shall be held in cash. In the absence
of such written direction, all funds in the X-I Component Account and the Class
X-II Account shall remain uninvested. Any investment earnings on such amounts
in
the X-I Component Account and the Class X-II Account shall be payable to the
holders of the Class C-I and Class C-II Certificates, respectively. The Trustee
shall account for each of the X-I Component Account and the Class X-II Account
as an outside reserve fund within the meaning of Treasury regulation 1.860G-2(h)
and not an asset of any REMIC created pursuant to this Agreement. The Class
C-I
and Class C-II Certificates shall evidence ownership of the X-I Component
Account and the Class X-II Account, respectively, for federal tax purposes
and
the Holders thereof shall direct the Trustee in writing as to the investment
of
amounts therein. The Trustee shall have no liability for losses on investments
in Eligible Investments made pursuant to this Section 5.12(b) (other than as
obligor on any such investments). Upon termination of the X-I Component Account
and the Class X-II Account, any amounts remaining in the X-I Component Account
and the Class X-II Account shall be distributed to the Holders of the Class
C-I
and Class C-II Certificates, respectively, in the same manner as if distributed
pursuant to Sections 5.02(i)(1) and 5.02(j)(1) hereof.
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(c) On
each
Distribution Date on or prior to the X-I Component Account Termination Date
and Class X-II Account Termination Date, amounts on deposit in the X-I Component
Account and the Class X-II Account will be withdrawn and applied to make
payments on the Class X-I, Class X-II, Class C-I and Class C-II Certificates,
as
provided in Sections
5.02(i) and 5.02(j)
of this
Agreement. Any amounts that the Trustee is not required to distribute from
the
in the X-I Component Account and the Class X-II Account pursuant to Sections
5.02(i) and 5.02(j) of this Agreement shall remain on deposit in the X-I
Component Account and the Class X-II Account.
(d) The
X-I
Component Account and the Class X-II Account shall terminate on the earlier
of
(i) the X-I Component Account Termination Date and the Class X-II Account
Termination Date, respectively, or (ii) the Distribution Date on which the
amount on deposit in the X-I Component Account and the Class X-II Account,
respectively, is reduced to zero.
Section
5.13. The
Certificate Insurance Policy.
(a) If,
on
the Business Day before any Distribution Date, the Trustee determines that
an
Insured Amount is required to be made by the Certificate Insurer on such
Distribution Date, the Trustee shall determine the amount of any such Insured
Amount and shall give written notice to the Certificate Insurer by completing
a
Notice of Nonpayment in the form of Exhibit A to the Certificate Insurance
Policy and submitting such Notice of Nonpayment by 12:00 noon, New York City
time on such Business Day as a claim for an Insured Amount. The Trustee’s
responsibility for delivering a Notice of Nonpayment to the Certificate Insurer,
as provided in the preceding sentence, is limited to the availability,
timeliness and accuracy of the information provided to it by the Master
Servicer.
In
the
event the Trustee receives a certified copy of an order of the appropriate
court
that any scheduled payment of principal or interest on a Guaranteed Certificate
has been voided in whole or in part as a preference payment under applicable
bankruptcy law, the Trustee shall promptly notify the Certificate Insurer in
writing, as appropriate, and the fiscal agent, if any, and the Trustee shall
make a claim on the Certificate Insurance Policy in accordance with the
provisions thereof to obtain payment by the Certificate Insurer of such voided
scheduled payment. In addition, the Trustee shall mail notice to all Holders
of
the Guaranteed Certificates so affected that, in the event that any such
Holder’s scheduled payment is so recovered, such Holder will be entitled to
payment pursuant to the terms of the Certificate Insurance Policy, a copy of
which shall be made available to such Holders by the Trustee. The Trustee shall
furnish to the Certificate Insurer and the appropriate fiscal agent, if any,
its
records listing the payments on the affected Guaranteed Certificates, if any,
that have been made by the Trustee and subsequently recovered from the affected
Holders, and the dates on which such payments were made by the
Trustee.
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(b) At
the
time of the execution hereof, and for the purposes hereof, the Trustee shall
establish the Policy Payments Account over which the Trustee shall have
exclusive control and sole right of withdrawal. The Policy Payments Account
shall be an Eligible Account. The Trustee shall deposit any amount paid under
the Certificate Insurance Policy into the Policy Payments Account and distribute
such amount only for the purposes of making payments to Holders of the
Guaranteed Certificates in respect of the Guaranteed Distributions (or other
amounts payable pursuant to the second paragraph of subsection (a) above on
the
Guaranteed Certificates by the Certificate Insurer pursuant to the Certificate
Insurance Policy) for which the related claim was made under the Certificate
Insurance Policy. Such amounts shall be allocated by the Trustee to Holders
of
Guaranteed Certificates entitled to such payments in the same manner as
principal and interest distributions are to be allocated with respect to such
Certificates pursuant to Section 5.02. It shall not be necessary for such
payments to be made by checks or wire transfers separate from the checks or
wire
transfers used to make regular payments hereunder with funds withdrawn from
the
Certificate Account. However, any payments made on the Guaranteed Certificates
from funds in the Policy Payments Account shall be noted as provided in
subsection (e) below. Funds held in the Policy Payments Account shall not be
invested by the Trustee.
(c) Any
funds
received from the Certificate Insurer for deposit into the Policy Payments
Account pursuant to the Certificate Insurance Policy in respect of a
Distribution Date or otherwise as a result of any claim under such Certificate
Insurance Policy shall be applied by the Trustee directly to the payment in
full
(i) of the Insured Amounts due on such Distribution Date on the Guaranteed
Certificates or (ii) of other amounts to which payments under the Certificate
Insurance Policy are to be applied. Funds received by the Trustee as a result
of
any claim under the Certificate Insurance Policy shall be used solely for
payment to the Holders of the Guaranteed Certificates and may not be applied
for
any other purpose, including, without limitation, satisfaction of any costs,
expenses or liabilities of the Trustee or the Trust Fund. Any funds remaining
in
the Policy Payments Account on the first Business Day after each Distribution
Date (other than the final Distribution Date to the extent of funds remaining
in
the Policy Payments Account required to be paid to Holders of the Guaranteed
Certificates) shall be remitted promptly to the Certificate Insurer pursuant
to
the written instruction of the Certificate Insurer.
(d) The
Trustee shall keep complete and accurate records in respect of (i) all funds
remitted to the Trustee by the Certificate Insurer and deposited into the Policy
Payments Account and (ii) the allocation of such funds to (A) payments of
interest on and principal in respect of any Guaranteed Certificates (B) any
Applied Loss Amount allocated to the Guaranteed Certificates and (C) payments
in
respect of Preference Amounts. The Certificate Insurer shall have the right
to
inspect such records at reasonable times during normal business hours upon
three
Business Days’ prior notice to the Trustee. Any Insured Amounts disbursed by the
Trustee from proceeds of the Certificate Insurance Policy shall be considered
payment by the Certificate Insurer and not by the Trust Fund with respect to
the
Guaranteed Certificates and the Certificate Insurer will be entitled to receive
the related Reimbursement Amount as provided in Section 5.02.
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(e) The
Trustee acknowledges, and each Holder of a Guaranteed Certificate by their
acceptance of such Certificate agree, that, without the need for any further
action on the part of the Certificate Insurer or the Trustee, to the extent
the
Certificate Insurer pays Insured Amounts or Preference Amounts, directly or
indirectly, on account of principal of or interest on any such Class of
Certificates, the Certificate Insurer will be fully subrogated to the rights
of
the Holders of such Class to receive the related Reimbursement Amount as
provided in Section 5.02. The Holders of each Guaranteed Certificate, by
acceptance of their respective Classes of Certificates assign their rights
as
Holders of such Class of Certificates to the extent of the Certificate Insurer’s
interest with respect to amounts paid under the Certificate Insurance Policy.
Each of the Depositor and Trustee agrees to such subrogation and, further agrees
to execute such instruments and to take such actions as, in the sole judgment
of
the Certificate Insurer are necessary to evidence such subrogation and, subject
to the priority of payment provisions of this Agreement, to perfect the rights
of the Certificate Insurer to receive any moneys paid or payable in respect
of
the Guaranteed Certificates under this Agreement or otherwise. Anything herein
to the contrary notwithstanding, solely for purposes of determining the
Certificate Insurer’s rights as subrogee for payments distributable pursuant to
Section 5.02, any payment with respect to distributions to the Guaranteed
Certificates that is made with funds received pursuant to the terms of the
Certificate Insurance Policy shall not be considered payment of such Class
of
Certificates from the Trust Fund and shall not result in the distribution or
the
provision for the distribution in reduction of the Class Principal Amount of
such Class of Certificates or Current Interest thereon, within the meaning
of
Article V.
(f) The
Trustee shall promptly notify the Certificate Insurer of either of the following
as to which a Responsible Officer has actual knowledge: (A) the commencement
of
any proceeding by or against the Depositor commenced under the Bankruptcy Code
or any other applicable bankruptcy, insolvency, receivership, rehabilitation
or
similar law (an “Insolvency Proceeding”) and (B) the making of any claim in
connection with any Insolvency Proceeding seeking the avoidance as a
preferential transfer (a “Preference Claim”) of any distribution made with
respect to the Guaranteed Certificates. Each Holder of a Guaranteed Certificate,
by its purchase of its respective Class of Certificate, and the Trustee hereby
agree that the Certificate Insurer (so long as no Certificate Insurer Default
exists) may at any time during the continuation of any proceeding relating
to a
Preference Claim direct all matters relating to such Preference Claim,
including, without limitation, (i) the direction of any appeal of any order
relating to any Preference Claim and (ii) the posting of any surety, supersedeas
or performance bond pending any such appeal. In addition and without limitation
of the foregoing, the Certificate Insurer shall be subrogated to the rights
of
the Trustee and each Holder of a Guaranteed Certificate in the conduct of any
Preference Claim, including, without limitation, all rights of any party to
an
adversary proceeding action with respect to any court order issued in connection
with any such Preference Claim.
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(g) The
Trustee shall surrender the Certificate Insurance Policy to the Certificate
Insurer for cancellation upon the termination of the Trust Fund pursuant to
Article VII hereof.
ARTICLE
VI.
CONCERNING
THE TRUSTEE; EVENTS OF DEFAULT
Section
6.01. Duties
of Trustee.
(a) The
Trustee, except during the continuance of an Event of Default of which a
Responsible Officer of the Trustee shall have actual knowledge, undertakes
to
perform such duties and only such duties as are specifically set forth in this
Agreement. Any permissive right of the Trustee provided for in this Agreement
shall not be construed as a duty of the Trustee. If an Event of Default (of
which a Responsible Officer of the Trustee shall have actual knowledge) has
occurred and has not otherwise been cured or waived, 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, unless
the Trustee is acting as Master Servicer, in which case it shall use the same
degree of care and skill as the Master Servicer hereunder.
(b) The
Trustee, upon receipt of all resolutions, certificates, statements, opinions,
reports, documents, orders or other instruments furnished to the Trustee which
are specifically required to be furnished pursuant to any provision of this
Agreement, shall examine them to determine whether they are, on their face,
in
the form required by this Agreement; provided, however, that the Trustee shall
not be responsible for the accuracy or content of any such resolution,
certificate, statement, opinion, report, document, order or other instrument
furnished by the Master Servicer, the Cap Providers, the Swap Counterparty
or
any Servicer to the Trustee pursuant to this Agreement, and shall not be
required to recalculate or verify any numerical information furnished to the
Trustee pursuant to this Agreement. Subject to the immediately preceding
sentence, if any such resolution, certificate, statement, opinion, report,
document, order or other instrument is found not to conform on its face to
the
form required by this Agreement in a material manner the Trustee shall notify
the Person providing such resolutions, certificates, statements, opinions,
reports or other documents of the non-conformity, and if the instrument is
not
corrected to the Trustee’s satisfaction, the Trustee will provide notice thereof
to the Certificateholders and any NIMS Insurer and will, at the expense of
the
Trust Fund, which expense shall be reasonable given the scope and nature of
the
required action, take such further action as directed by the Certificateholders
and any NIMS Insurer.
(c) The
Trustee shall not have any liability arising out of or in connection with this
Agreement, except for its negligence or willful misconduct. Notwithstanding
anything in this Agreement to the contrary, the Trustee shall not be liable
for
special, indirect or consequential losses or damages of any kind whatsoever
(including, but not limited to, lost profits). No provision of this Agreement
shall be construed to relieve the Trustee from liability for its own negligent
action, its own negligent failure to act or its own willful misconduct;
provided, however, that:
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(i) The
Trustee shall not be personally liable with respect to any action taken,
suffered or omitted to be taken by it in good faith in accordance with the
consent or direction of the Holders of Certificates as provided in Section
6.18
hereof;
(ii) For
all
purposes under this Agreement, the Trustee shall not be deemed to have notice
of
any Event of Default (other than resulting from a failure by the Master Servicer
to remit funds or to furnish information to the Trustee when required to do
so)
unless a Responsible Officer of the Trustee has actual knowledge thereof or
unless written notice of any event which is in fact such a default is received
by the Trustee at the address provided in Section 11.07, and such notice
references the Holders of the Certificates and this Agreement or the Certificate
Insurer under the Certificate Insurance Policy;
(iii) The
Trustee shall not be responsible for the acts or omissions of any Servicer,
Custodian or the Master Servicer, it being understood that this Agreement shall
not be construed to render any of them agents of one another; and
(iv) The
Trustee shall not be responsible for the acts or omissions of the
Master Servicer or the Certificate Insurer.
(d) The
Trustee shall have no duty hereunder with respect to any complaint, claim,
demand, notice or other document it may receive or which may be alleged to
have
been delivered to or served upon it by the parties as a consequence of the
assignment of any Mortgage Loan hereunder; provided, however, that the Trustee
shall promptly remit to the Master Servicer upon receipt any such complaint,
claim, demand, notice or other document (i) which is delivered to the Corporate
Trust Office of the Trustee and makes reference to this series of Certificate
or
this Agreement, (ii) of which a Responsible Officer has actual knowledge, and
(iii) which contains information sufficient to permit the Trustee to make a
determination that the real property to which such document relates is a
Mortgaged Property.
(e) The
Trustee shall not be personally liable with respect to any action taken,
suffered or omitted to be taken by it in good faith in accordance with the
direction of any NIMS Insurer, the Certificate Insurer or the Certificateholders
of any Class holding Certificates which evidence, as to such Class, Percentage
Interests aggregating not less than 25% as 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.
(f) The
Trustee shall not be required to perform services under this Agreement, or
to
expend or risk its own funds or otherwise incur financial liability for the
performance of any of its duties hereunder or the exercise of any of its rights
or powers if there is reasonable ground for believing that the timely payment
of
its fees and expenses or the repayment of such funds or adequate indemnity
against such risk or liability is not reasonably assured to it, and none of
the
provisions contained in this Agreement shall in any event require the Trustee
to
perform, or be responsible for the manner of performance of, any of the
obligations of the Master Servicer or any Servicer under this Agreement or
any
Servicing Agreement except during such time, if any, as the Trustee shall be
the
successor to, and be vested with the rights, duties, powers and privileges
of,
the Master Servicer in accordance with the terms of this Agreement, except
with
respect to the Trustee, during such time, if any, as the Trustee shall be the
successor to, and be vested with the rights, duties, powers and privileges
of,
the Master Servicer in accordance with the terms of this Agreement.
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(g) The
Trustee shall not be held liable by reason of any insufficiency in any account
(including without limitation the Collection Account and the Certificate
Account) held by or on behalf of the Trustee resulting from any investment
loss
on any Eligible Investment included therein (except to the extent that the
Trustee is the obligor and has defaulted thereon).
(h) Except
as
otherwise provided herein, the Trustee shall not have any duty (A) to see to
any
recording, filing, or depositing of this Agreement or any agreement referred
to
herein or any financing statement or continuation statement evidencing a
security interest, or to see to the maintenance of any such recording or filing
or depositing or to any rerecording, refiling or redepositing of any thereof,
(B) to see to any insurance, (C) to see to the payment or discharge of any
tax,
assessment, or other governmental charge or any lien or encumbrance of any
kind
owing with respect to, assessed or levied against, any part of the Trust Fund
other than from funds available in the Collection Account or the Certificate
Account, or (D) to confirm or verify the contents of any reports or certificates
of the Master Servicer, any Servicer, the Swap Counterparty, the Cap Providers
or the Depositor delivered to the Trustee pursuant to this Agreement believed
by
the Trustee to be genuine and to have been signed or presented by the proper
party or parties.
(i) The
Trustee shall not be liable in its individual capacity for an error of judgment
made in good faith by a Responsible Officer or other officers of the Trustee
unless it shall be proved that the Trustee was negligent in ascertaining the
pertinent facts.
(j) Notwithstanding
anything in this Agreement to the contrary, the Trustee shall not be liable
for
special, indirect or consequential losses or damages of any kind whatsoever
(including, but not limited to, lost profits), even if the Trustee has been
advised of the likelihood of such loss or damage and regardless of the form
of
action.
(k) This
Agreement shall not be construed to render the Trustee an agent of the Master
Servicer or any Servicer.
(l) For
so
long as the Depositor is subject to Exchange Act reporting requirements for
the
Xxxxxx XS Trust Mortgage Pass-Through Certificates, Series 2007-15N transaction,
the Trustee shall give prior written notice to the Sponsor, the Master Servicer
and the Depositor of the appointment of any Subcontractor by it and a written
description (in form and substance satisfactory to the Sponsor and the
Depositor) of the role and function of each Subcontractor utilized by the
Trustee, specifying (A) the identity of each such Subcontractor and (B) which
elements of the servicing criteria set forth under Item 1122(d) of Regulation
AB
will be addressed in assessments of compliance provided by each such
Subcontractor.
(m) The
Trustee shall notify the Sponsor, the Master Servicer and the Depositor within
five (5) calendar days of knowledge thereof (i) of any legal proceedings pending
against the Trustee, of the type described in Item 1117 (§ 229.1117) of
Regulation AB, (ii) of any merger, consolidation or sale of substantially all
of
the assets of the Trustee and (iii) if the Trustee shall become (but only to
the
extent not previously disclosed) at any time an affiliate of any of the parties
listed on Exhibit S hereto or any of their affiliates. On or before March 1st
of
each year, the Depositor shall distribute the information in Exhibit S to the
Trustee.
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Section
6.02. Certain
Matters Affecting the Trustee.
Except
as
otherwise provided in Section 6.01:
(i) The
Trustee may request, and may 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, approval, 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;
(ii) The
Trustee may consult with counsel and any advice of its counsel or 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 advice or Opinion of Counsel;
(iii) The
Trustee shall not be personally liable for any action taken, suffered or omitted
by it in good faith and reasonably believed by it to be authorized or within
the
discretion or rights or powers conferred upon it by this Agreement;
(iv) Unless
an
Event of Default shall have occurred and be continuing, the Trustee shall not
be
bound to make any investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion, report, notice,
request, consent, order, approval, bond or other paper or document (provided
the
same appears regular on its face), unless requested in writing to do so by
any
NIMS Insurer or the Holders of at least a majority in Class Principal Amount
(or
Percentage Interest) of each Class of Certificates; provided, however, that,
if
the payment within a reasonable time to the Trustee of the costs, expenses
or
liabilities likely to be incurred by it in the making of such investigation
is,
in the opinion of the Trustee not reasonably assured to the Trustee by the
security afforded to it by the terms of this Agreement, the Trustee may require
reasonable indemnity against such expense or liability or payment of such
estimated expenses from any NIMS Insurer or the Certificateholders, as
applicable, as a condition to proceeding. The reasonable expense thereof shall
be paid by the party requesting such investigation and if not reimbursed by
the
requesting party shall be reimbursed to the Trustee by the Trust
Fund;
(v) The
Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents, custodians or attorneys,
which agents, custodians or attorneys shall have any and all of the rights,
powers, duties and obligations of the Trustee conferred on them by such
appointment, provided that the Trustee shall continue to be responsible for
its
duties and obligations hereunder to the extent provided herein, and provided
further that the Trustee shall not be responsible for any misconduct or
negligence on the part of any such agent or attorney appointed with due care
by
the Trustee;
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(vi) The
Trustee shall not be under any obligation to exercise any of the trusts or
powers vested in it by this Agreement or to institute, conduct or defend any
litigation hereunder or in relation hereto, in each case at the request, order
or direction of any of the Certificateholders or any NIMS Insurer pursuant
to
the provisions of this Agreement, unless such Certificateholders or any NIMS
Insurer shall have offered to the Trustee reasonable security or indemnity
against the costs, expenses and liabilities which may be incurred therein or
thereby;
(vii) The
right
of the Trustee to perform any discretionary act enumerated in this Agreement
shall not be construed as a duty, and the Trustee shall not be answerable for
other than its negligence or willful misconduct in the performance of such
act;
and
(viii) The
Trustee shall not be required to give any bond or surety in respect of the
execution of the Trust Fund created hereby or the powers granted
hereunder.
Section
6.03. Trustee
Not Liable for Certificates.
The
Trustee makes no representations as to the validity or sufficiency of this
Agreement, the Exchange Trust Agreement, the Swap Agreement, the Certificate
Insurance Policy, the Interest Rate Cap Agreement, the Deferred Interest Cap
Agreements or of the Certificates (other than the certificate of authentication
on the Certificates) or of any Mortgage Loan, or related document save that
the
Trustee represents that, assuming due execution and delivery by the other
parties hereto, this Agreement has been duly authorized, executed and delivered
by it and constitutes its valid and binding obligation, enforceable against
it
in accordance with its terms except that such enforceability may be subject
to
(A) applicable bankruptcy and insolvency laws and other similar laws affecting
the enforcement of the rights of creditors generally, and (B) general principles
of equity regardless of whether such enforcement is considered in a proceeding
in equity or at law. The Trustee shall not be accountable for the use or
application by the Depositor of funds paid to the Depositor in consideration
of
the assignment of the Mortgage Loans to the Trust Fund by the Depositor or
for
the use or application of any funds deposited into the Collection Account,
the
Certificate Account, any Escrow Account or any other fund or account maintained
with respect to the Certificates. The Trustee shall not be responsible for
the
legality or validity of this Agreement or the Exchange Trust Agreement, the
Swap
Agreement, the Interest Rate Cap Agreement, the Deferred Interest Cap Agreements
or the validity, priority, perfection or sufficiency of the security for the
Certificates issued or intended to be issued hereunder. Except as otherwise
provided herein, the Trustee shall have no responsibility for filing 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 or to record this Agreement.
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Section
6.04. Trustee
May Own Certificates.
The
Trustee and any Affiliate or agent of the Trustee in its individual or any
other
capacity may become the owner or pledgee of Certificates and may transact
banking and trust business with the other parties hereto and their Affiliates
with the same rights it would have if it were not Trustee or such
agent.
Section
6.05. Eligibility
Requirements for Trustee.
The
Trustee hereunder shall at all times be (i) an institution whose accounts are
insured by the FDIC, (ii) a corporation or national banking association,
organized and doing business under the laws of any State or the United States
of
America, authorized under such laws to exercise corporate trust powers, having
a
combined capital and surplus of not less than $50,000,000 and subject to
supervision or examination by federal or state authority and (iii) not an
Affiliate of the Master Servicer or any Servicer. If such corporation or
national banking 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, the combined capital and
surplus of such corporation or national banking association shall be deemed
to
be its combined capital and surplus as set forth in its most recent report
of
condition so published. In case at any time the Trustee shall cease to be
eligible in accordance with provisions of this Section, the Trustee shall resign
immediately in the manner and with the effect specified in Section
6.06.
Section
6.06. Resignation
and Removal of Trustee.
(a) The
Trustee may at any time resign and be discharged from the trust hereby created
by giving written notice thereof to the Depositor, any NIMS Insurer, the Swap
Counterparty and the Master Servicer. Upon receiving such notice of resignation,
the Depositor will promptly appoint a successor trustee acceptable to any NIMS
Insurer by written instrument, one copy of which instrument shall be delivered
to the resigning Trustee, one copy to the successor trustee, one copy to the
Certificate Insurer and one copy to each of the Master Servicer, the Swap
Counterparty and any NIMS Insurer. If no successor trustee shall have been
so
appointed and shall have accepted appointment within 30 days after the giving
of
such notice of resignation, the resigning Trustee may petition any court of
competent jurisdiction for the appointment of a successor trustee.
(b) If
at any
time (i) the Trustee shall cease to be eligible in accordance with the
provisions of Section 6.05 and shall fail to resign after written request
therefor by the Depositor or any NIMS Insurer, (ii) the Trustee shall become
incapable of acting, or shall be adjudged a 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 of its property or affairs for
the purpose of rehabilitation, conservation or liquidation, (iii) a tax is
imposed or threatened with respect to the Trust Fund by any state in which
the
Trustee or the Trust Fund held by the Trustee is located, (iv) the continued
use
of the Trustee would result in a downgrading of the rating by any Rating Agency
of any Class of Certificates with a rating or (v) the Trustee shall fail to
provide the information required pursuant to Section 6.01(l) or (m) or Section
9.25 hereof, then the Depositor, any NIMS Insurer or the Master Servicer shall
remove the Trustee and the Depositor shall appoint a successor trustee
acceptable to any NIMS Insurer and the Master Servicer by written instrument,
one copy of which instrument shall be delivered to each of the Trustee so
removed, the successor trustee, the Master Servicer, the Certificate Insurer,
the Swap Counterparty and any NIMS Insurer.
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(c) The
Holders of more than 50% of the Class Principal Amount (or Percentage Interest)
of each Class of Certificates (or any NIMS Insurer in the event of failure
of
the Trustee to perform its obligations hereunder) may at any time upon 30 days’
written notice to the Trustee and the Depositor remove the Trustee by such
written instrument, signed by such Holders or their attorney in fact duly
authorized (or by any NIMS Insurer), one copy of which instrument shall be
delivered to each of the Depositor, the Trustee, the Swap Counterparty, the
Certificate Insurer, the Master Servicer and any NIMS Insurer; and the Depositor
shall thereupon appoint a successor trustee in accordance with this Section
mutually acceptable to the Depositor, the Master Servicer and any NIMS
Insurer.
(d) Any
resignation or removal of the Trustee and appointment of a successor trustee
pursuant to any of the provisions of this Section shall become effective upon
(i) the payment of all unpaid amounts owed to the Trustee and (ii) the
acceptance of appointment by the successor trustee as provided in Section
6.07.
Section
6.07. Successor
Trustee.
(a) Any
successor trustee appointed as provided in Section 6.06 shall execute,
acknowledge and deliver to the Depositor, the Master Servicer and any NIMS
Insurer, the Swap Counterparty and to its predecessor trustee an instrument
accepting such appointment hereunder, and thereupon the resignation or removal
of the predecessor trustee shall become effective and such successor trustee
without any further act, deed or conveyance, shall become fully vested with
all
the rights, powers, duties and obligations of its predecessor hereunder, with
like effect as if originally named as trustee herein. The predecessor trustee
(or its custodian) shall deliver to the successor trustee (or assign to the
Trustee its interest under the Custodial Agreement, to the extent permitted
thereunder) all Mortgage Files and documents and statements related to each
Mortgage File held by it hereunder, and shall duly assign, transfer, deliver
and
pay over to the successor trustee the entire Trust Fund, together with all
necessary instruments of transfer and assignment or other documents properly
executed necessary to effect such transfer and such of the records or copies
thereof maintained by the predecessor trustee in the administration hereof
as
may be requested by the successor trustee and shall thereupon be discharged
from
all duties and responsibilities under this Agreement. In addition, the Master
Servicer and the predecessor trustee shall execute and deliver such other
instruments and do such other things as may reasonably be required to more
fully
and certainly vest and confirm in the successor trustee all such rights, powers,
duties and obligations.
(b) No
successor trustee shall accept appointment as provided in this Section unless
at
the time of such appointment such successor trustee shall be eligible under
the
provisions of Section 6.05.
(c) Upon
acceptance of appointment by a successor trustee as provided in this Section,
the predecessor trustee shall mail notice of the succession of such trustee
hereunder to the Certificate Insurer and all Holders of Certificates at their
addresses as shown in the Certificate Register and to any Rating Agency. The
expenses of such mailing shall be borne by the predecessor trustee.
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Section
6.08. Merger
or Consolidation of Trustee.
Any
Person into which the Trustee may be merged or with which it may be
consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Trustee shall be a party, or any Persons succeeding
to the corporate trust business of the Trustee shall be the successor to the
Trustee 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, provided that such Person shall be eligible under the
provisions of Section 6.05. As a condition to the succession to the Trustee
under this Agreement by any Person (i) into which the Trustee may be merged
or
consolidated, or (ii) which may be appointed as a successor to the Trustee,
the
Trustee shall notify the Depositor and the Master Servicer, at least 15 calendar
days prior to the effective date of such succession or appointment, of such
succession or appointment and shall furnish to the Depositor in writing and
in
form and substance reasonably satisfactory to the Depositor, all information
reasonably necessary for the Trustee to accurately and timely report, pursuant
to Section 6.20, the event under Item 6.02 of Form 8-K pursuant to the Exchange
Act (if such reports under the Exchange Act are required to be filed under
the
Exchange Act).
Section
6.09. Appointment
of Co-Trustee, Separate Trustee or Custodian.
(a) Notwithstanding
any other provisions hereof, at any time, the Trustee, the Depositor or the
Certificateholders evidencing more than 50% of the Class Principal Amount (or
Percentage Interest) of every Class of Certificates shall have the power from
time to time to appoint one or more Persons, approved by the Trustee and any
NIMS Insurer, to act either as co-trustees jointly with the Trustee, or as
separate trustees, or as custodians, for the purpose of holding title to,
foreclosing or otherwise taking action with respect to any Mortgage Loan outside
the state where the Trustee has its principal place of business where such
separate trustee or co-trustee is necessary or advisable (or the Trustee has
been advised by the Master Servicer that such separate trustee or co-trustee
is
necessary or advisable) under the laws of any state in which a property securing
a Mortgage Loan is located or for the purpose of otherwise conforming to any
legal requirement, restriction or condition in any state in which a property
securing a Mortgage Loan is located or in any state in which any portion of
the
Trust Fund is located. The separate Trustees, co-trustees, or custodians so
appointed shall be trustees or custodians for the benefit of all the
Certificateholders and shall have such powers, rights and remedies as shall
be
specified in the instrument of appointment; provided, however, that no such
appointment shall, or shall be deemed to, constitute the appointee an agent
of
the Trustee. The obligation of the Trustee to make Advances pursuant to Section
5.04 and 6.14 shall not be affected or assigned by the appointment of a
co-trustee. Prior to the appointment hereunder of any co-trustee, separate
trustee, or custodian pursuant to this Section 6.09, such Person shall enter
into an agreement, in form and substance satisfactory to the Depositor, the
Master Servicer and the Trustee, relating to the satisfaction of such Person
of
its reporting obligations under Regulation AB with respect to the Trust Fund.
The Trustee shall not be responsible for any action or omission of any separate
trustee, co-trustee or custodian. Notwithstanding the foregoing, if such
co-custodian or co-trustee is determined to be a Servicing Function Participant,
no such co-custodian or co-trustee shall be vested with any powers, rights
and
remedies under this Agreement unless such party has agreed to comply with all
Regulation AB requirements set forth under this Agreement or the Custodial
Agreement, as applicable.
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(b) Every
separate trustee, co-trustee, and custodian shall, to the extent permitted
by
law, be appointed and act subject to the following provisions and
conditions:
(i) all
powers, duties, obligations and rights conferred upon the Trustee in respect
of
the receipt, custody and payment of moneys shall be exercised solely by the
Trustee;
(ii) all
other
rights, powers, duties and obligations conferred or imposed upon the Trustee
shall be conferred or imposed upon and exercised or performed by the Trustee
and
such separate trustee, co-trustee, or custodian jointly, except to the extent
that under any law of any jurisdiction in which any particular act or acts
are
to be performed the Trustee shall be incompetent or unqualified to perform
such
act or acts, in which event such rights, powers, duties and obligations,
including the holding of title to the Trust Fund or any portion thereof in
any
such jurisdiction, shall be exercised and performed by such separate trustee,
co-trustee, or custodian;
(iii) no
trustee or custodian hereunder shall be personally liable by reason of any
act
or omission of any other trustee or custodian hereunder; and
(iv) the
Trustee or the Certificateholders evidencing more than 50% of the Aggregate
Voting Interests of the Certificates may at any time accept the resignation
of
or remove any separate trustee, co-trustee or custodian, so appointed by it
or
them, if such resignation or removal does not violate the other terms of this
Agreement.
(c) Any
notice, request or other writing given to the Trustee shall be deemed to have
been given to each of the then separate trustees and co-trustees, as effectively
as if given to each of them. Every instrument appointing any separate trustee,
co-trustee or custodian shall refer to this Agreement and the conditions of
this
Article VI. Each separate trustee and co-trustee, upon its acceptance of the
trusts conferred, shall be vested with the estates or property specified in
its
instrument of appointment, either jointly with the 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 given to the Master
Servicer and any NIMS Insurer.
(d) Any
separate trustee, co-trustee or custodian 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, co-trustee
or
custodian 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.
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(e) No
separate trustee, co-trustee or custodian hereunder shall be required to meet
the terms of eligibility as a successor trustee under Section 6.05 hereunder
and
no notice to Certificateholders of the appointment shall be required under
Section 6.07 hereof.
(f) The
Trustee agrees to instruct the co-trustees, if any, to the extent necessary
to
fulfill the Trustee’s obligations hereunder.
(g) The
Trustee shall pay the reasonable compensation of the co-trustees requested
by
the Trustee to be so appointed (which compensation shall not reduce any
compensation payable to the Trustee) and, if paid by the Trustee, shall be
a
reimbursable expense pursuant to Section 6.12.
(h) Notwithstanding
the foregoing, for so long as reports are required to be filed with the
Commission under the Exchange Act with respect to the Trust, the Trustee shall
not utilize any Subcontractor for the performance of its duties hereunder if
such Subcontractor would be “participating in the servicing function” within the
meaning of Item 1122 of Regulation AB without (a) giving notice to the Seller,
the Master Servicer and the Depositor and (b) requiring any such Subcontractor
to provide to the Trustee an assessment of compliance as provided in Section
9.25(a) and an attestation report as provided in Section 9.25(b), which reports
the Trustee shall include in its assessment and attestation reports. The Trustee
shall indemnify the Depositor and the Master Servicer and any director, officer,
employee or agent of each of the Depositor and the Master Servicer and hold
them
harmless against any and all claims, losses, damages, penalties, fines,
forfeitures, reasonable and necessary legal fees and related costs, judgments,
and any other costs, fees and expenses that any of them may sustain arising
out
of or based upon (i) the failure by the Trustee to give notice of the engagement
of any Subcontractor or (ii) the failure by such Subcontractor engaged by the
Trustee to provide the Trustee or the Master Servicer and the Depositor, either
directly or indirectly through the Trustee, an assessment of compliance as
provided in Section 9.25(a) and an attestation report as provided in Section
9.25(b). This indemnity shall survive the termination of this Agreement or
the
earlier resignation or removal of the Trustee.
Section
6.10. Authenticating
Agents.
(a) The
Trustee may appoint one or more Authenticating Agents which shall be authorized
to act on behalf of the Trustee in authenticating Certificates. Wherever
reference is made in this Agreement to the authentication of Certificates by
the
Trustee or the Trustee’s certificate of authentication, such reference shall be
deemed to include authentication on behalf of the Trustee by an Authenticating
Agent and a certificate of authentication executed on behalf of the Trustee
by
an Authenticating Agent. Each Authenticating Agent must be a corporation
organized and doing business under the laws of the United States of America
or
of any state, having a combined capital and surplus of at least $15,000,000,
authorized under such laws to do a trust business and subject to supervision
or
examination by federal or state authorities and acceptable to any NIMS
Insurer.
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(b) Any
Person into which any Authenticating Agent may be merged or converted or with
which it may be consolidated, or any Person resulting from any merger,
conversion or consolidation to which any Authenticating Agent shall be a party,
or any Person succeeding to the corporate agency business of any Authenticating
Agent, shall continue to be the Authenticating Agent without the execution
or
filing of any paper or any further act on the part of the Trustee or the
Authenticating Agent.
(c) Any
Authenticating Agent may at any time resign by giving at least 30 days’ advance
written notice of resignation to the Trustee, any NIMS Insurer and the
Depositor. The Trustee may at any time terminate the agency of any
Authenticating Agent by giving written notice of termination to such
Authenticating Agent, any NIMS Insurer and the Depositor. Upon receiving a
notice of resignation or upon such a termination, or in case at any time any
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section 6.10, the Trustee may appoint a successor
Authenticating Agent, shall give written notice of such appointment to the
Depositor and any NIMS Insurer and shall mail notice of such appointment to
all
Holders of Certificates. Any successor Authenticating Agent upon acceptance
of
its appointment hereunder shall become vested with all the rights, powers,
duties and responsibilities of its predecessor hereunder, with like effect
as if
originally named as Authenticating Agent. No successor Authenticating Agent
shall be appointed unless eligible under the provisions of this Section 6.10.
No
Authenticating Agent shall have responsibility or liability for any action
taken
by it as such at the direction of the Trustee. Any Authenticating Agent shall
be
entitled to reasonable compensation for its services and, if paid by the
Trustee, it shall be a reimbursable expense pursuant to Section
6.12.
Section
6.11. Indemnification
of Trustee.
The
Trustee and its respective directors, officers, employees and agents shall
be
entitled to indemnification from the Trust Fund for any loss, liability or
expense incurred in connection with any legal proceeding or incurred without
negligence or willful misconduct on their part (it being understood that the
negligence or willful misconduct of any Custodian shall not constitute
negligence or willful misconduct on the part of the Trustee or its directors,
officers, employees or agents for such purpose), arising out of, or in
connection with, the acceptance or administration of the trusts created
hereunder or under the Exchange Trust Agreement, or in connection with the
performance of their duties hereunder, the Mortgage Loan Sale Agreement, the
Interest Rate Cap Agreement, the Certificate Insurance Policy, Deferred Interest
Cap Agreements, the Swap Agreement, any Transfer Agreement, any Servicing
Agreement or any Custodial Agreement, including any applicable fees and expenses
payable pursuant to Section 6.12 and the costs and expenses of defending
themselves against any claim in connection with the exercise or performance
of
any of their powers or duties hereunder, provided that:
(i) with
respect to any such claim, the Trustee shall have given the Depositor, the
Master Servicer and the Holders written notice thereof promptly after the
Trustee shall have knowledge thereof; provided that failure to so notify shall
not relieve the Trust Fund of the obligation to indemnify the Trustee; however,
any reasonable delay by the Trustee to provide written notice to the Depositor,
the Master Servicer and the Holders promptly after the Trustee shall have
obtained knowledge of a claim shall not relieve the Trust Fund of the obligation
to indemnify the Trustee under this Section 6.11;
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(ii) while
maintaining control over its own defense, the Trustee shall cooperate and
consult fully with the Depositor in preparing such defense; and
(iii) notwithstanding
anything to the contrary in this Section 6.11, the Trust Fund shall not be
liable for settlement of any such claim by the Trustee entered into without
the
prior consent of the Depositor, which consent shall not be unreasonably
withheld.
The
provisions of this Section 6.11 shall survive any termination of this Agreement
and the resignation or removal of the Trustee and shall be construed to include,
but not be limited to any loss, liability or expense under any environmental
law.
Section
6.12. Fees
and Expenses of Trustee and Custodian.
The
Trustee shall be entitled to (i) receive, and is authorized to pay itself,
the
amount of income or gain earned from investment of funds in the Certificate
Account and (ii) reimbursement of all reasonable expenses, disbursements and
advances incurred or made by the Trustee in accordance with this Agreement
(including fees and expenses of its counsel and all persons not regularly in
its
employment and any amounts described in Section 10.01 to which the Trustee
is
entitled as provided therein), except for expenses, disbursements and advances
that either (i) do not constitute “unanticipated expenses” within the meaning of
Treasury Regulations Section 1.860G-1(b)(3)(ii) or (ii) arise from its
negligence, bad faith or willful misconduct. The Custodian shall receive
compensation and reimbursement or payment of its expenses under the Custodial
Agreement as provided therein; provided that, to the extent required under
Section 6 or Section 20 of the Custodial Agreement, the Trustee is hereby
authorized to pay such compensation or reimbursement from amounts on deposit
in
the Certificate Account prior to any distributions to Certificateholders
pursuant to Section 5.02 hereof.
Section
6.13. Collection
of Monies.
Except
as
otherwise expressly provided in this Agreement, the Trustee may demand payment
or delivery of, and shall receive and collect, all money and other property
payable to or receivable by the Trustee pursuant to this Agreement. The Trustee
shall hold all such money and property received by it as part of the Trust
Fund
and shall distribute it as provided in this Agreement. If the Trustee shall
not
have timely received amounts to be remitted with respect to the Mortgage Loans
from the Master Servicer, the Trustee shall request the Master Servicer to
make
such distribution as promptly as practicable or legally permitted. If the
Trustee shall subsequently receive any such amount, it may withdraw such
request.
Section
6.14. Events
of Default; Trustee To Act; Appointment of Successor.
(a) The
occurrence of any one or more of the following events shall constitute an “Event
of Default”:
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(i) Any
failure by the Master Servicer to furnish to the Trustee the Mortgage Loan
data
sufficient to prepare the reports described in Section 4.03(a) which continues
unremedied for a period of two (2) Business Days after the date upon which
written notice of such failure shall have been given to such Master Servicer
by
the Trustee or to such Master Servicer and the Trustee by any NIMS Insurer
or
Holders of not less than 25% of the Class Principal Amount of each Class of
Certificates affected thereby; or
(ii) Any
failure on the part of the Master Servicer duly 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 continues unremedied for
a
period of 30 days (or 15 days, in the case of failure to maintain any Insurance
Policy required to be maintained pursuant to this Agreement) after the date
on
which written notice of such failure, requiring the same to be remedied, shall
have been given to the Master Servicer by the Trustee or to the Master Servicer
and the Trustee by any NIMS Insurer or Holders of not less than 25% of the
Class
Principal Amount (or Class Notional Amount or Percentage Interest) of each
Class
of Certificates affected thereby; or
(iii) A
decree
or order of a court or agency or supervisory authority having jurisdiction
for
the appointment of a conservator or receiver 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 60 days or any Rating
Agency reduces or withdraws or threatens to reduce or withdraw the rating of
the
Certificates because of the financial condition or loan servicing capability
of
such Master Servicer; or
(iv) The
Master Servicer shall consent to the appointment of a conservator or receiver
or
liquidator in any insolvency, readjustment of debt, marshalling of assets and
liabilities, voluntary liquidation or similar proceedings of or relating to
the
Master Servicer or of or relating to all or substantially all of its property;
or
(v) 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 any applicable
insolvency or reorganization statute, make an assignment for the benefit of
its
creditors or voluntarily suspend payment of its obligations; or
(vi) The
Master Servicer shall be dissolved, or shall dispose of all or substantially
all
of its assets, or consolidate with or merge into another entity or shall permit
another entity to consolidate or merge into it, such that the resulting entity
does not meet the criteria for a successor servicer as specified in Section
9.27
hereof; or
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(vii) If
a
representation or warranty set forth in Section 9.14 hereof shall prove to
be
incorrect as of the time made in any respect that materially and adversely
affects the interests of the Certificateholders, and the circumstance or
condition in respect of which such representation or warranty was incorrect
shall not have been eliminated or cured within 30 days after the date on which
written notice of such incorrect representation or warranty shall have been
given to the Master Servicer by the Trustee or to the Master Servicer and the
Trustee by the Holders of not less than 50% of the Aggregate Voting Interests
of
the Certificates or by any NIMS Insurer; or
(viii) A
sale or
pledge of any of the rights of the Master Servicer hereunder or an assignment
of
this Agreement by the Master Servicer or a delegation of the rights or duties
of
the Master Servicer hereunder shall have occurred in any manner not otherwise
permitted hereunder and without the prior written consent of the Trustee, any
NIMS Insurer and Certificateholders holding not less than 50% of the Aggregate
Voting Interests of the Certificates; or
(ix) The
Master Servicer has notice or actual knowledge that a Servicer at any time
is
not either a Xxxxxx Xxx- or Xxxxxxx Mac- approved Seller/Servicer, and the
Master Servicer has not terminated the rights and obligations of such Servicer
under the Servicing Agreement and replaced such Servicer with a Xxxxxx Mae-
or
Xxxxxxx Mac-approved servicer within 60 days of the date the Master Servicer
receives such notice or acquires such actual knowledge; or
(x) After
any
receipt of notice from the Trustee or any NIMS Insurer, any failure of the
Master Servicer to remit to the Trustee any payment required to be made to
the
Trustee for the benefit of Certificateholders under the terms of this Agreement,
including any Advance, on any Deposit Date, which failure continues unremedied
for a period of one Business Day after the date upon which such written notice
of such failure shall have been given to the Master Servicer by the
Trustee.
If
an
Event of Default described in clauses (i) through (ix) of this Section 6.14
shall occur, then, in each and every case, subject to applicable law, so long
as
any such Event of Default shall not have been remedied within any period of
time
prescribed by this Section, the Trustee, by notice in writing to the Master
Servicer may, and shall, if so directed by Certificateholders evidencing not
less than 25% of the Class Principal Amount (or Class Notional Amount or
Percentage Interest) of each Class of Certificates affected thereby or any
NIMS
Insurer, terminate all of the rights and obligations of the Master Servicer
hereunder and in and to the Mortgage Loans and the proceeds thereof. If an
Event
of Default described in clause (x) of this Section 6.14 shall occur, then,
in
each and every case, subject to applicable law, so long as such Event of Default
shall not have been remedied within the time period prescribed by clause (x)
of
this Section 6.14, the Trustee, by notice in writing to the Master Servicer
and
the NIMS Insurer, shall promptly terminate all the rights and obligations of
the
Master Servicer hereunder and in and to the Mortgage Loans and the proceeds
thereof. On or after the receipt by the Master Servicer of such written notice,
all authority and power of the Master Servicer, and only in its capacity as
Master Servicer under this Agreement, whether with respect to the Mortgage
Loans
or otherwise, shall pass to and be vested in the Trustee and pursuant to and
under the terms of this Agreement; provided, however, the parties acknowledge
that notwithstanding the preceding sentence, there may be a transition period,
not to exceed 90 days, in order to effect the transfer of the Master Servicer’s
obligations to the Trustee, the Trustee is hereby authorized and empowered
to
execute and deliver, on behalf of the defaulting Master Servicer as
attorney-in-fact or otherwise, any and all 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. The defaulting Master Servicer agrees to cooperate with the Trustee
in effecting the termination of the defaulting Master Servicer’s
responsibilities and rights hereunder as Master Servicer including, without
limitation, notifying the Servicers of the assignment of the master servicing
function and providing the Trustee or its designee all documents and records
in
electronic or other form reasonably requested by it to enable the Trustee or
its
designee to assume the defaulting Master Servicer’s functions hereunder and the
transfer to the Trustee for administration by it of all amounts which shall
at
the time be or should have been deposited by the defaulting Master Servicer
in
the Collection Account maintained by such defaulting Master Servicer and any
other account or fund maintained with respect to the Certificates or thereafter
received with respect to the Mortgage Loans. The Master Servicer being
terminated (or the Trust Fund, if the Master Servicer is unable to fulfill
its
obligations hereunder) as a result of an Event of Default shall bear all costs
of a master servicing transfer, including but not limited to those of the
Trustee reasonably allocable to specific employees and overhead, legal fees
and
expenses, accounting and financial consulting fees and expenses, and costs
of
amending the Agreement, if necessary.
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The
Trustee shall be entitled to be reimbursed from the Master Servicer (or by
the
Trust Fund, if the Master Servicer is unable to fulfill its obligations
hereunder) for all costs associated with the transfer of master servicing from
the predecessor Master Servicer, including, without limitation, any costs or
expenses associated with the complete transfer of all master servicing data
and
the completion, correction or manipulation of such servicing data as may be
required by the Trustee to correct any errors or insufficiencies in the master
servicing data or otherwise to enable the Trustee to master service the Mortgage
Loans properly and effectively. If the terminated Master Servicer does not
pay
such reimbursement within thirty (30) days of its receipt of an invoice
therefor, such reimbursement shall be an expense of the Trust Fund and the
Trustee shall be entitled to withdraw such reimbursement from amounts on deposit
in the Certificate Account pursuant to Section 4.04(b); provided that the
terminated Master Servicer shall reimburse the Trust Fund for any such expense
incurred by the Trust Fund.
Notwithstanding
the termination of its activities as Master Servicer, each terminated Master
Servicer shall continue to be entitled to reimbursement to the extent provided
in Section 4.02(a)(i), (ii), (iii), (v), (vii), (ix) and (x) to the extent
such
reimbursement relates to the period prior to such Master Servicer’s
termination.
If
any
Event of Default shall occur of which a Responsible Officer of the Trustee
has
actual knowledge, the Trustee, shall promptly notify any NIMS Insurer, the
Certificate Insurer, the Swap Counterparty and each Rating Agency of the nature
and extent of such Event of Default. The Trustee shall immediately give written
notice to the Master Servicer upon the Master Servicer’s failure to remit funds
on the Deposit Date.
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(b) On
or
after the time the Master Servicer (and the Trustee, if notice is sent by any
NIMS Insurer) receives a notice of termination from the Trustee pursuant to
Section 6.14(a) or the Trustee receives the resignation of the Master Servicer
evidenced by an Opinion of Counsel pursuant to Section 9.28, the Trustee, within
90 days of such notice unless another master servicer acceptable to the NIMS
Insurer shall have been appointed, shall be the successor in all respects to
the
Master Servicer in its capacity as such under this Agreement and the
transactions set forth or provided for herein and shall have all the rights
and
powers and be subject to all the responsibilities, duties and liabilities
relating thereto and arising thereafter placed on the Master Servicer hereunder,
including the obligation to make Advances; provided, however, that any failure
to perform such duties or responsibilities caused by the Master Servicer’s
failure to provide information required by this Agreement shall not be
considered a default by the Trustee hereunder. In addition, the Trustee shall
have no responsibility for any act or omission of the Master Servicer prior
to
the issuance of any notice of termination. The Trustee shall have no liability
relating to the representations and warranties of the Master Servicer set forth
in Section 9.14. In the Trustee’s capacity as such successor, the Trustee shall
have the same limitations on liability herein granted to the Master Servicer.
As
compensation therefor, the Trustee shall be entitled to receive all compensation
payable to the Master Servicer under this Agreement, including the Master
Servicing Fee and the General Servicing Fee (subject to reduction for the
Servicing Fee of GMACM, GreenPoint and SunTrust). The Trustee shall be entitled
to be reimbursed from the Master Servicer (or by the Trust Fund if the Master
Servicer is unable to fulfill its obligations hereunder) for all costs
associated with the transfer of master servicing from the predecessor master
servicer, including, without limitation, any costs or expenses associated with
the complete transfer of all master servicing data and the completion,
correction or manipulation of such master servicing data as may be required
by
the Trustee to correct any errors or insufficiencies in the master servicing
data or otherwise to enable the Trustee to master service the Mortgage Loans
properly and effectively.
(c) Notwithstanding
the above, the Trustee may, if it shall be unwilling to continue to so act,
or
shall, if it is unable to so act or if any NIMS Insurer so requests in writing
to the Trustee, request the Depositor to appoint, petition a court of competent
jurisdiction to appoint, or appoint on its own behalf any established housing
and home finance institution servicer, master servicer, servicing or mortgage
servicing institution acceptable to the NIMS Insurer having a net worth of
not
less than $15,000,000 and meeting such other standards for a successor master
servicer as are set forth in this Agreement, as the successor to such Master
Servicer in the assumption of all of the responsibilities, duties or liabilities
of a master servicer, like the Master Servicer hereunder. Any entity designated
by the Trustee as a successor master servicer may be an Affiliate of the
Trustee; provided, however, that, unless such Affiliate meets the net worth
requirements and other standards set forth herein for a successor master
servicer, the Trustee in its individual capacity shall agree, at the time of
such designation, to be and remain liable to the Trust Fund for such Affiliate’s
actions and omissions in performing its duties hereunder. In connection with
such appointment and assumption, the Trustee may make such arrangements for
the
compensation of such successor out of payments on Mortgage Loans as it and
such
successor shall agree; provided, however, that no such compensation shall be
in
excess of that permitted to the Master Servicer hereunder. The Trustee and
such
successor shall take such actions, consistent with this Agreement, as shall
be
necessary to effectuate any such succession and may make other arrangements
with
respect to the servicing to be conducted hereunder which are not inconsistent
herewith. The Master Servicer shall cooperate with the Trustee and any successor
master servicer in effecting the termination of the Master Servicer’s
responsibilities and rights hereunder including, without limitation, notifying
Mortgagors of the assignment of the master servicing functions and providing
the
Trustee and successor master servicer, as applicable, all documents and records
in electronic or other form reasonably requested by it to enable it to assume
the Master Servicer’s functions hereunder and the transfer to the Trustee or
such successor master servicer, as applicable, all amounts which shall at the
time be or should have been deposited by the Master Servicer in the Collection
Account and any other account or fund maintained with respect to the
Certificates or thereafter be received with respect to the Mortgage Loans.
Neither the Trustee nor any other successor master servicer shall be deemed
to
be in default hereunder by reason of any failure to make, or any delay in
making, any distribution hereunder or any portion thereof caused by (i) the
failure of the Master Servicer to deliver, or any delay in delivering, cash,
documents or records to it, (ii) the failure of the Master Servicer to cooperate
as required by this Agreement, (iii) the failure of the Master Servicer to
deliver the Mortgage Loan data to the Trustee or such successor master servicer
as required by this Agreement or (iv) restrictions imposed by any regulatory
authority having jurisdiction over the Master Servicer. No successor master
servicer shall be deemed to be in default hereunder by reason of any failure
to
make, or any delay in making, any distribution hereunder or any portion thereof
caused by (i) the failure of the terminated Master Servicer to deliver, or
any
delay in delivering cash, documents or records to it, or (ii) the failure of
the
terminated Master Servicer to cooperate as required by this
Agreement.
-195-
Section
6.15. Additional
Remedies of Trustee Upon Event of Default.
During
the continuance of any Event of Default, so long as such Event of Default shall
not have been remedied, the Trustee, in addition to the rights specified in
Section 6.14, shall have the right, in its own name and as trustee of an express
trust, to take all actions now or hereafter existing at law, in equity or by
statute to enforce its rights and remedies and to protect the interests, and
enforce the rights and remedies, of any NIMS Insurer, the Certificate Insurer
and the Certificateholders (including the institution and prosecution of all
judicial, administrative and other proceedings and the filings of proofs of
claim and debt in connection therewith). Except as otherwise expressly provided
in this Agreement, no remedy provided for by this Agreement shall be exclusive
of any other remedy, and each and every remedy shall be cumulative and in
addition to any other remedy, and no delay or omission to exercise any right
or
remedy shall impair any such right or remedy or shall be deemed to be a waiver
of any Event of Default.
Section
6.16. Waiver
of Defaults.
More
than
50% of the Aggregate Voting Interests of Certificateholders (with the consent
of
any NIMS Insurer) may waive any default or Event of Default by the Master
Servicer in the performance of its obligations hereunder, except that a default
in the making of any required deposit to the Certificate Account that would
result in a failure of the Trustee to make any required payment of principal
of
or interest on the Certificates may only be waived with the consent of 100%
of
the affected Certificateholders and with the consent of any NIMS Insurer. Upon
any such waiver of a past default, such default shall cease to exist, and any
Event of Default arising therefrom shall be deemed to have been remedied for
every purpose of this Agreement. No such waiver shall extend to any subsequent
or other default or impair any right consequent thereon except to the extent
expressly so waived.
-196-
Section
6.17. Notification
to Holders.
Upon
termination of the Master Servicer or appointment of a successor to the Master
Servicer, in each case as provided herein, the Trustee shall promptly mail
notice thereof by first class mail to the Certificate Insurer and to the
Certificateholders at their respective addresses appearing on the Certificate
Register, the Swap Counterparty and any NIMS Insurer. The Trustee shall also,
within 45 days after the occurrence of any Event of Default known to a
Responsible Officer of the Trustee, give written notice thereof to any NIMS
Insurer and the Certificateholders, unless such Event of Default shall have
been
cured or waived prior to the issuance of such notice and within such 45 day
period.
Section
6.18. Directions
by Certificateholders and Duties of Trustee During Event of
Default.
Subject
to the provisions of Section 8.01 hereof, during the continuance of any Event
of
Default, Holders of Certificates evidencing not less than 25% of the Class
Principal Amount (or Percentage Interest) of each Class of Certificates affected
thereby may, with the consent of any NIMS Insurer, direct 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;
provided, however, that the Trustee shall be under no obligation to pursue
any
such remedy, or to exercise any of the trusts or powers vested in it by this
Agreement (including, without limitation, (i) the conducting or defending of
any
administrative action or litigation hereunder or in relation hereto and (ii)
the
terminating of the Master Servicer or any successor master servicer from its
rights and duties as master servicer hereunder) at the request, order or
direction of any of the Certificateholders, or any NIMS Insurer, unless such
Certificateholders, or any NIMS Insurer, shall have offered to the Trustee
reasonable security or indemnity against the cost, expenses and liabilities
which may be incurred therein or thereby; and, provided further, that, subject
to the provisions of Section 8.01, the Trustee shall have the right to decline
to follow any such direction if the Trustee, in accordance with an Opinion
of
Counsel, determines that the action or proceeding so directed may not lawfully
be taken or if the Trustee in good faith determines that the action or
proceeding so directed would involve it in personal liability for which it
is
not indemnified to its satisfaction or be unjustly prejudicial to the non
assenting Certificateholders.
Section
6.19. Action
Upon Certain Failures of the Master Servicer and Upon Event of
Default.
In
the
event that a Responsible Officer of the Trustee shall have actual knowledge
of
any action or inaction of the Master Servicer that would become an Event of
Default upon the Master Servicer’s failure to remedy the same after notice, the
Trustee shall give notice thereof to the Master Servicer and the Swap
Counterparty. For all purposes of this Agreement, in the absence of actual
knowledge by a Responsible Officer of the Trustee, the Trustee shall not be
deemed to have knowledge of any failure of the Master Servicer or any other
Event of Default unless notified in writing by the Depositor, the Master
Servicer or the Certificateholders.
-197-
Section
6.20. Preparation
of Tax Returns and Other Reports.
(a) The
Trustee shall prepare or cause to be prepared on behalf of the Trust Fund,
based
upon information calculated in accordance with this Agreement pursuant to
instructions given by the Depositor, and the Trustee shall file federal tax
returns, all in accordance with Article X hereof. The Trustee shall prepare
and
file required state income tax returns and such other returns as may be required
by applicable law relating to the Trust Fund, and, if required by state law,
and
shall file any other documents to the extent required by applicable state tax
law (to the extent such documents are in the Trustee’s possession). The Trustee
shall forward copies to the Depositor of all such returns and Form 1099
supplemental tax information and such other information within the control
of
the Trustee as the Depositor may reasonably request in writing, and shall
distribute to each Certificateholder such forms and furnish such information
within the control of the Trustee as are required by the Code and the REMIC
Provisions to be furnished to them, and will prepare and distribute to
Certificateholders Form 1099 (supplemental tax information) (or otherwise
furnish information within the control of the Trustee) to the extent required
by
applicable law. The Master Servicer shall indemnify the Trustee for any
liability of or assessment against the Trustee arising out of or based upon
any
error in any of such tax or information returns arising out of or based upon
errors in the information provided by such Master Servicer.
(b) The
Trustee shall prepare and file with the IRS, on behalf of each REMIC created
hereby, an application on IRS Form SS-4. The Trustee, upon receipt from the
IRS
of the Notice of Taxpayer Identification Number Assigned for each REMIC, shall
promptly forward copies of such notices to the Master Servicer and the
Depositor. The Trustee will file an IRS Form 8811 for all REMICs created
hereunder. The Trustee shall have no obligation to verify the information in
any
Form 8811 or Form SS-4 filing.
(c) Reports
Filed on Form 10-D.
(i) Within
15
days after each Distribution Date (or, if applicable, within such shorter period
of time as is required under the rules of the Commission as in effect from
time
to time (the “Rules”)) during each year in which the Trust Fund is subject to
Exchange Act reporting requirements, the Trustee shall prepare and file on
behalf of the Trust Fund any Form 10-D required by the Exchange Act, in form
and
substance as required by the Exchange Act. The Trustee shall file each Form
10-D
with a copy of the related Distribution Date Statement attached thereto. Any
disclosure in addition to the Distribution Date Statement that is required
to be
included on Form 10-D (“Additional Form 10-D Disclosure”) shall be determined
and prepared by and at the direction of the Depositor pursuant to the following
paragraph and the Trustee will have no duty or liability for any failure
hereunder to determine or prepare any Additional Form 10-D Disclosure, except
as
set forth in the next paragraph.
-198-
(ii) As
set
forth on Exhibit Q-1 hereto, within five calendar days after the related
Distribution Date, (A) certain parties to the Xxxxxx XS Trust Mortgage
Pass-Through Certificates, Series 2007-15N transaction, as identified in Exhibit
Q-1, shall provide to the Trustee, to the extent known by a Responsible Officer
thereof, in XXXXX-compatible form (which may be Word or Excel documents easily
convertible to XXXXX format), or in such other form as otherwise agreed upon
by
the Trustee and such party, the form and substance of any Additional Form 10-D
Disclosure, if applicable, and included with such Additional Form 10-D
Disclosure, an Additional Disclosure Notification in the form attached hereto
as
Exhibit Q-4, (B) the Trustee shall forward to the Depositor, the form and
substance of the Additional Form 10-D Disclosure, and (C) the Depositor will
approve, as to form and substance, or disapprove, as the case may be, the
inclusion of the Additional Form 10-D Disclosure on Form 10-D. The Sponsor
will
be responsible for any reasonable fees and expenses assessed or incurred by
the
Trustee in connection with including any Additional Form 10-D Disclosure on
Form
10-D pursuant to this paragraph.
(iii) After
preparing the Form 10-D, the Trustee shall forward electronically a draft copy
of the Form 10-D to the Exchange Act Signing Party for review and approval.
If
the Master Servicer is the Exchange Act Signing Party and the Form 10-D includes
Additional Form 10-D Disclosure, then the Form 10-D shall also be electronically
distributed to the Depositor for review and approval. No later than two Business
Days prior to the 15th calendar day after the related Distribution Date, a
senior officer of the Exchange Act Signing Party shall sign the Form 10-D and
return an electronic or fax copy of such signed Form 10-D (with an original
executed hard copy to follow by overnight mail) to the Trustee. If a Form 10-D
cannot be filed on time or if a previously filed Form 10-D needs to be amended,
the Trustee will follow the procedures set forth in subsection (f)(ii) of this
Section 6.20. Promptly (but no later than one Business Day) after the deadline
for filing such report with the Commission, the Trustee will make available
on
its internet website a final executed copy of each Form 10-D. Each party to
this
Agreement acknowledges that the performance by the Trustee of its duties under
this Section 6.20(c) related to the timely preparation and filing of Form 10-D
is contingent upon such parties strictly observing all applicable deadlines
in
the performance of their duties under this Section 6.20(c). The Trustee shall
have no liability for any loss, expense, damage, claim arising out of or with
respect to any failure to properly prepare and/or timely file such Form 10-D,
where such failure results from the Trustee’s inability or failure to obtain or
receive, on a timely basis, any information from any other party hereto needed
to prepare, arrange for execution or file such Form 10-D, not resulting from
its
own negligence, bad faith or willful misconduct.
(d) Reports
Filed on Form 10-K.
(i) Unless
and until a Form 15 suspension notice shall have been filed, on or prior to
the
90th calendar day after the end of each fiscal year of the Trust Fund or such
earlier date as may be required by the Exchange Act (the “10-K Filing Deadline”)
(it being understood that the fiscal year for the Trust Fund ends on December
31st of each year), commencing in March 2008, the Trustee shall prepare and
file
on behalf of the Trust Fund a Form 10-K, in form and substance as required
by
the Exchange Act. To facilitate the Trustee’s preparation of the Form 10-K, the
Depositor shall provide to the Trustee, no later than 30 days prior to the
10-K
Filing Deadline, a template of the Form 10-K in an Xxxxx-compatible format.
Each
such Form 10-K shall include the following items, in each case to the extent
they have been delivered to the Trustee within the applicable time frames set
forth in this Agreement and in the Servicing Agreement and the Custodial
Agreement, (A) an annual compliance statement for the Servicer, each Additional
Servicer and the Master Servicer, as described under Section 9.26 hereof and
in
the Servicing Agreement, (B)(I) the annual reports on assessment of compliance
with servicing criteria for the Servicer, the Custodian, each Additional
Servicer, the Master Servicer, any Servicing Function Participant, the Paying
Agent (if other than the Trustee) and the Trustee (each, a “Reporting
Servicer”), as described under Section 9.25(a) hereof and in the Servicing
Agreement and Custodial Agreement, and (II) if any Reporting Servicer’s report
on assessment of compliance with servicing criteria described under Section
9.25(a) hereof or in the Servicing Agreement or Custodial Agreement identifies
any material instance of noncompliance, disclosure identifying such instance
of
noncompliance, or if any Reporting Servicer’s report on assessment of compliance
with servicing criteria described under Section 9.25(a) hereof or in the
Servicing Agreement or Custodial Agreement is not included as an exhibit to
such
Form 10-K, disclosure that such report is not included and an explanation why
such report is not included, (C)(I) the registered public accounting firm
attestation report for each Reporting Servicer, as described under Section
9.25(b) hereof and in the Servicing Agreement and Custodial Agreement and (II)
if any registered public accounting firm attestation report described under
Section 9.25(b) hereof or in the Servicing Agreement or Custodial Agreement
identifies any material instance of noncompliance, disclosure identifying such
instance of noncompliance, or if any such registered public accounting firm
attestation report is not included as an exhibit to such Form 10-K, disclosure
that such report is not included and an explanation why such report is not
included, and (D) a Xxxxxxxx-Xxxxx Certification. Any disclosure or information
in addition to (A) through (D) above that is required to be included on Form
10-K (“Additional Form 10-K Disclosure”) shall be determined and prepared by and
at the direction of the Depositor pursuant to the following paragraph and the
Trustee will have no duty or liability for any failure hereunder to determine
or
prepare any Additional Form 10-K Disclosure, except as set forth in the next
paragraph.
-199-
(ii) As
set
forth on Exhibit Q-2 hereto, no later than March 15 of each year that the Trust
Fund is subject to the Exchange Act reporting requirements, commencing in 2008,
(A) certain parties to the Xxxxxx XS Trust Mortgage Pass-Through Certificates,
Series 2007-15N transaction, as identified in Exhibit Q-2, shall provide to
the
Trustee, to the extent known by a Responsible Officer thereof, in
XXXXX-compatible form (which may be Word or Excel documents easily convertible
to XXXXX format), or in such other form as otherwise agreed upon by the Trustee
and such party, the form and substance of any Additional Form 10-K Disclosure,
if applicable, and include with such Additional Form 10-K Disclosure, an
Additional Disclosure Notification in the form attached hereto as Exhibit Q-4,
(B) the Trustee shall forward to the Depositor, the form and substance of the
Additional Form 10-K Disclosure, and (C) the Depositor will approve, as to
form
and substance, or disapprove, as the case may be, the inclusion of the
Additional Form 10-K Disclosure on Form 10-K. The Trustee has no duty under
this
Agreement to monitor or enforce the performance by the parties listed on Exhibit
Q-2 of their duties under this paragraph or proactively solicit or procure
from
such parties any Form 10-K Disclosure Information. The Sponsor will be
responsible for any reasonable fees and expenses assessed or incurred by the
Trustee in connection with including any Additional Form 10-K Disclosure on
Form
10-K pursuant to this paragraph.
-200-
(iii) After
preparing the Form 10-K, the Trustee shall forward electronically a draft copy
of the Form 10-K to the Exchange Act Signing Party for review and approval.
If
the Master Servicer is the Exchange Act Signing Party and the Form 10-K includes
Additional Form 10-K Disclosure, then the Form 10-K shall also be electronically
distributed to the Depositor for review and approval. No later than the close
of
business New York City time on the 4th Business Day prior to the 10-K Filing
Deadline, a senior officer of the Exchange Act Signing Party shall sign the
Form
10-K and return an electronic or fax copy of such signed Form 10-K (with an
original executed hard copy to follow by overnight mail) to the Trustee. If
a
Form 10-K cannot be filed on time or if a previously filed Form 10-K needs
to be
amended, the Trustee will follow the procedures set forth in subsection (f)
of
this Section 6.20. Promptly (but no later than one Business Day) after the
deadline for filing such report with the Commission, the Trustee will make
available on its internet website a final executed copy of each Form 10-K.
The
parties to this Agreement acknowledge that the performance by the Trustee of
its
duties under this Section 6.20(d) related to the timely preparation and filing
of Form 10-K is contingent upon such parties (and any Additional Servicer or
Servicing Function Participant) strictly observing all applicable deadlines
in
the performance of their duties under this Section 6.20(d), Section 9.25(a),
Section 9.25(b) and Section 9.26. The Trustee shall have no liability for any
loss, expense, damage, claim arising out of or with respect to any failure
to
properly prepare and/or timely file such Form 10-K, where such failure results
from the Trustee’s inability or failure to obtain or receive, on a timely basis,
any information from any other party hereto needed to prepare, arrange for
execution or file such Form 10-K, not resulting from its own negligence, bad
faith or willful misconduct.
(iv) Each
Form
10-K shall include the Xxxxxxxx-Xxxxx Certification. The Trustee (including
in
its capacity as Paying Agent, if applicable), the Paying Agent (if other than
the Trustee) and, if the Depositor is the Exchange Act Signing Party, the Master
Servicer, shall, and the Trustee (including in its capacity as Paying Agent,
if
applicable), the Paying Agent (if other than the Trustee) and the Master
Servicer (if applicable) shall cause any Servicing Function Participant engaged
by it to, provide to the Person who signs the Xxxxxxxx-Xxxxx Certification
(the
“Certifying Person”), by March 15 of each year in which the Trust Fund is
subject to the reporting requirements of the Exchange Act (each, a “Back-Up
Certification”), in the form attached hereto as Exhibit T (or, in the case of
(x) the Paying Agent (if other than the Trustee), such other form as agreed
to
between the Paying Agent and the Exchange Act Signing Party, and (y) the
Trustee, the form attached hereto as Exhibit U), upon which the Certifying
Person, the entity for which the Certifying Person acts as an officer, and
such
entity’s officers, directors and Affiliates (collectively with the Certifying
Person, “Certification Parties”) can reasonably rely. The senior officer of the
Exchange Act Signing Party shall serve as the Certifying Person on behalf of
the
Trust Fund. In the event the Master Servicer, the Trustee, the Paying Agent
or
any Servicing Function Participant engaged by such parties is terminated or
resigns pursuant to the terms of this Agreement, such party or Servicing
Function Participant shall provide a Back-Up Certification to the Certifying
Person pursuant to this Section 6.20(d)(iv) with respect to the period of time
it was subject to this Agreement.
-201-
(v) Each
person (including their officers or directors) that signs any Form 10-K
Certification shall be entitled to indemnification from the Trust Fund for
any
liability or expense incurred by it in connection with such certification,
other
than any liability or expense attributable to such Person’s own bad faith,
negligence or willful misconduct. The provisions of this subsection shall
survive any termination of this Agreement and the resignation or removal of
such
Person.
(e) Reports
Filed on Form 8-K.
(i) During
any year in which the Trust Fund is subject to Exchange Act reports, within
four
Business Days after the occurrence of an event requiring disclosure on Form
8-K
(each such event, a “Reportable Event”) or such later date as may be required by
the Commission, and if requested by the Depositor, the Trustee shall prepare
and
file on behalf of the Trust Fund any Form 8-K, as required by the Exchange
Act;
provided that the Depositor shall file the initial Form 8-K in connection with
the issuance of the Certificates. Any disclosure or information related to
a
Reportable Event or that is otherwise required to be included on Form 8-K (“Form
8-K Disclosure Information”) shall be determined and prepared by and at the
direction of the Depositor pursuant to the following paragraphs and the Trustee
will have no duty or liability for any failure hereunder to determine or prepare
any Form 8-K Disclosure Information or any Form 8-K, except as set forth in
the
next paragraph.
(ii) As
set
forth on Exhibit Q-3 hereto, for so long as the Trust Fund is subject to the
Exchange Act reporting requirements, no later than Noon New York City time
on
the 2nd Business Day after the occurrence of a Reportable Event (A) certain
parties to the Xxxxxx XS Trust Mortgage Pass-Through Certificates, Series
2007-15N transaction, as identified in Exhibit Q-3, shall provide to the
Trustee, to the extent known by a Responsible Officer thereof, in
XXXXX-compatible form (which may be Word or Excel documents easily convertible
to XXXXX format), or in such other form as otherwise agreed upon by the Trustee
and such party, the form and substance of any Form 8-K Disclosure Information,
if applicable, and include with such Form 8-K Disclosure Information, an
Additional Disclosure Notification in the form attached hereto as Exhibit Q-4,
(B) the Trustee shall forward to the Depositor, the form and substance of the
Form 8-K Disclosure Information, and (C) the Depositor will approve, as to
form
and substance, or disapprove, as the case may be, the inclusion of the Form
8-K
Disclosure Information. The Trustee has no duty under this Agreement to monitor
or enforce the performance by the parties listed on Exhibit Q-3 of their duties
under this paragraph or proactively solicit or procure from such parties any
Form 8-K Disclosure Information. The Sponsor will be responsible for any
reasonable fees and expenses assessed or incurred by the Trustee in connection
with including any Form 8-K Disclosure Information on Form 8-K pursuant to
this
paragraph.
-202-
(iii) After
preparing the Form 8-K, the Trustee shall forward electronically, no later
than
Noon New York city time on the 3rd Business Day after the Reportable Event,
a
draft copy of the Form 8-K to the Exchange Act Signing Party for review and
approval. If the Master Servicer is the Exchange Act Signing Party, then the
Form 8-K shall also be electronically distributed to the Depositor for review
and approval. No later than Noon New York City time on the 4th Business Day
after the Reportable Event, a senior officer of the Exchange Act Signing Party
shall sign the Form 8-K and return an electronic or fax copy of such signed
Form
8-K (with an original executed hard copy to follow by overnight mail) to the
Trustee. If a Form 8-K cannot be filed on time or if a previously filed Form
8-K
needs to be amended, the Trustee will follow the procedures set forth in
subsection (f) of this Section 6.20. Promptly (but no later than one Business
Day) after the deadline for filing such form with the Commission, the Trustee
will, make available on its internet website a final executed copy of each
Form
8-K. The parties to this Agreement acknowledge that the performance by the
Trustee of its duties under this Section 6.20(e) related to the timely
preparation and filing of Form 8-K is contingent upon such parties strictly
observing all applicable deadlines in the performance of their duties under
this
Section 6.20(e). The Trustee shall have no liability for any loss, expense,
damage or claim arising out of or with respect to any failure to properly
prepare and/or timely file such Form 8-K, where such failure results from the
Trustee’s inability or failure to obtain or receive, on a timely basis, any
information from any other party hereto needed to prepare, arrange for execution
or file such Form 8-K, not resulting from its own negligence, bad faith or
willful misconduct.
(f) Delisting;
Amendments; Late Filings.
(i) Prior
to
January 30 of the first year in which the Trustee is able to do so under
applicable law, unless otherwise directed by the Depositor, the Trustee shall
prepare and file a Form 15 relating to the automatic suspension of reporting
in
respect of the Trust Fund under the Exchange Act.
-203-
(ii) In
the
event that the Trustee becomes aware that it will be unable to timely file
with
the Commission all or any required portion of any Form 8-K, 10-D or 10-K
required to be filed by this Agreement because required disclosure information
was either not delivered to it or delivered to it after the delivery deadlines
set forth in this Agreement or for any other reason, the Trustee will
immediately notify the Depositor. In the case of Form 10-D and 10-K, the parties
to this Agreement and the Servicer will cooperate to prepare and file a Form
12b-25 and a 10-D/A and 10-K/A as applicable, pursuant to Rule 12b-25 of the
Exchange Act. In the case of Form 8-K, the Trustee will, upon receipt of all
required Form 8-K Disclosure Information and upon the approval and direction
of
the Depositor, include such disclosure information on the next Form 10-D. In
the
event that any previously filed Form 8-K, 10-D or 10-K needs to be amended,
the
Trustee will notify the Depositor and the Servicer and such parties will
cooperate to prepare any necessary 8-K/A, 10-D/A or 10-K/A. Any Form 15, Form
12b-25 or any amendment to Form 8-K, 10-D or 10-K shall be signed by a senior
officer of the Exchange Act Signing Party. The parties to this Agreement
acknowledge that the performance by the Trustee of its duties under this Section
6.20(f) related to the timely preparation and filing of Form 15, a Form 12b-25
or any amendment to Form 8-K, 10-D or 10-K is contingent upon each such party
performing its duties under this Section. The Trustee shall have no liability
for any loss, expense, damage, claim arising out of or with respect to any
failure to properly prepare and/or timely file any such Form 15, Form 12b-25
or
any amendments to Forms 8-K, 10-D or 10-K, where such failure results from
the
Trustee’s inability or failure to obtain or receive, on a timely basis, any
information from any other party hereto needed to prepare, arrange for execution
or file such Form 15, Form 12b-25 or any amendments to Forms 8-K, 10-D or 10-K,
not resulting from its own negligence, bad faith or willful
misconduct.
(g) Any
party
that signs any Exchange Act report that the Trustee is required to file shall
provide to the Trustee prompt notice of the execution of such Exchange Act
report along with the name and contact information for the person signing such
report and shall promptly deliver to the Trustee the original executed signature
page for such report. In addition, each of the parties agrees to provide to
the
Trustee such additional information related to such party as the Trustee may
reasonably request, including evidence of the authorization of the person
signing any certification or statement, financial information and reports,
and
such other information related to such party or its performance
hereunder.
(h) The
Depositor and the Master Servicer, by mutual agreement, shall determine which
of
the Depositor or the Master Servicer shall be the initial Exchange Act Signing
Party. Upon such determination, the Depositor shall timely notify the Trustee,
and such notice shall provide contact information for the Exchange Act Signing
Party. If the Depositor and Master Servicer, at any time, mutually agree to
change the identity of the Exchange Act Signing Party, the Depositor shall
provide timely notice to the Trustee of any such change.
(i) The
Trustee shall promptly send copies of each periodic report filed on Form 8-K,
Form 10-D or other applicable form, each annual report on Form 10-K, and each
Form 15 Suspension Notification, together in each case with the acceptance
confirmation receipt from XXXXX, to XxXxx Xxxxxx LLP and to the Depositor (i)
by
e-mail to the e-mail addresses provided in writing by each of XxXxx Xxxxxx
LLP
and the Depositor, respectively and (ii) to XxXxx Xxxxxx LLP at 0000 X Xxxxxx,
X.X., Xxxxxxxxxx, X.X. 00000, and to the Depositor at the address specified
in
Section 11.07, in each case to the attention of a designated contact specified
by each of XxXxx Xxxxxx LLP and the Depositor, respectively.
-204-
Section
6.21. Reporting
Requirements of the Commission.
Each
of
the parties hereto acknowledges and agrees that the purpose of Sections 6.01,
6.20, 9.25(a) and 9.25(b) of this Agreement is to facilitate compliance by
the
Sponsor, the Master Servicer and the Depositor with the provisions of Regulation
AB, as such may be amended or clarified from time to time. Therefore, each
of
the parties agrees that (a) the obligations of the parties hereunder shall
be
interpreted in such a manner as to accomplish compliance with Regulation AB,
(b)
the parties’ obligations hereunder will be supplemented and modified as
necessary to be consistent with any such amendments, interpretive advice or
guidance, convention or consensus among active participants in the asset-backed
securities markets, advice of counsel, or otherwise in respect of the
requirements of Regulation AB and (c) the parties shall comply with reasonable
requests made by the Sponsor, the Depositor, the Master Servicer or the Trustee
for delivery of additional or different information as the Sponsor, the
Depositor, the Master Servicer or the Trustee may determine in good faith is
necessary to comply with the provisions of Regulation AB, provided that such
information is available without unreasonable effort or expense and within
such
timeframe as may be reasonably requested.
Section
6.22. Indemnification
by the Trustee.
The
Trustee (including in its capacity as Paying Agent) agrees to indemnify the
Depositor and the Master Servicer, and each of their respective directors,
officers, employees and agents and the Trust Fund and hold each of them harmless
from and against any losses, damages, penalties, fines, forfeitures, legal
fees
and expenses and related costs, judgments, and any other costs, fees and
expenses that any of them may sustain arising out of or based upon the
engagement of any Subcontractor in violation of Section 6.01(l) or any failure
by the Trustee to deliver when and as required the information pursuant to
Section 6.01(m), the disclosure applicable to the Trustee pursuant to Sections
6.20(c)(ii), 6.20(d)(ii) and 6.20(e)(ii), the certification applicable to the
Trustee pursuant to Section 6.20(d)(iv) or any assessment of compliance pursuant
to Section 9.25(a). This indemnification shall survive the termination of this
Agreement or the termination of the Trustee hereunder.
ARTICLE
VII.
PURCHASE
OF MORTGAGE LOANS AND
TERMINATION
OF THE TRUST FUND
Section
7.01. Purchase
of Mortgage Loans; Termination of the Trust Fund Upon Purchase or Liquidation
of
Mortgage Loans.
(a) The
respective obligations and responsibilities of the Trustee and the Master
Servicer created hereby (other than the obligation of the Trustee to make
payments to Certificateholders and the Swap Counterparty as set forth in Section
7.02, the obligation of the Master Servicer to make a final remittance to the
Trustee pursuant to Section 4.01, and the obligations of the Master Servicer
to
the Trustee pursuant to Sections 9.10 and 9.14) shall terminate on the earliest
of (i) the final payment or other liquidation of the last Mortgage Loan
remaining in the Trust Fund and the disposition of all REO Property, (ii) the
sale of the property held by the Trust Fund in accordance with Section 7.01(b)
and (iii) the Latest Possible Maturity Date; provided, however, that in no
event
shall the Trust Fund created hereby continue beyond the expiration of 21 years
from the death of the last 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. Any termination of the Trust Fund shall be carried out in such
a
manner so that the termination of each REMIC included therein shall qualify
as a
“qualified liquidation” under the REMIC Provisions.
-205-
(b) (b) For
Pool
1, Pool 1C and Pool 2 on any Distribution Date occurring on or after the Pool
1-2 Initial Optional Termination Date, the Master Servicer, with the prior
written consent of any NIMS Insurer and the Seller, which consent shall not
be
unreasonably withheld, has the option to cause each of the Stack I REMICs to
adopt a plan of complete liquidation and to purchase the Pool 1, Pool 1C and
Pool 2 Mortgage Loans and any REO Property related to Pool 1, Pool 1C and Pool
2
(the “Pool 1-2 Assets”) for a price equal to the Xxxx 0-0 Xxxxxxxxxx Price,
pursuant to Section 7.03 hereof. Upon exercise of such option, the Pool 1-2
Assets shall be sold to the Master Servicer at a price (the “Pool 1-2 Repurchase
Price”) equal to the sum of (i) 100% of the unpaid principal balance of each
Mortgage Loan in Pool 1, Pool 1C and Pool 2 on the day of such purchase plus
interest accrued thereon at the Mortgage Rate with respect to such Mortgage
Loan
to the Due Date in the Collection Period immediately preceding the Distribution
Date on which the proceeds of such sale will be distributed to the holders
of
the Group I Certificates, (ii) the fair market value of any REO Property related
to the Pool 1, Pool 1C and Pool 2 Mortgage Loans and any other property related
to the Pool 1, Pool 1C and Pool 2 Mortgage Loans held by any REMIC, such fair
market value to be determined by an independent appraiser or appraisers mutually
agreed upon by the Master Servicer, any NIMS Insurer and the Trustee (reduced,
in the case of REO Property, by (1) reasonably anticipated disposition costs
and
(2) any amount by which the fair market value as so reduced exceeds the
outstanding principal balance of the related Mortgage Loan plus interest accrued
thereon at the applicable Net Mortgage Rate to the date of such purchase),
(iii)
any unreimbursed Servicing Advances and other amounts to be reimbursed pursuant
to the immediately following sentence related to the Pool 1, Pool 1C and Pool
2
Mortgage Loans and (iv) any Cap Termination Payment or Swap Termination Payment
related to any of the Group I Certificates payable to the Cap Provider or Swap
Counterparty, as applicable, as a result of a termination pursuant to this
Section 7.01; provided, however, if there are any NIM Securities outstanding,
the Master Servicer may only exercise its option after receiving the prior
written consent of the holders of such NIM Securities and, if such consent
is
given, the Pool 1-2 Repurchase Price shall also include an amount equal to
the
sum of (1) any accrued interest on the NIM Securities related to the Pool 1,
Pool 1C and Pool 2 Mortgage Loans, (2) the unpaid principal balance of any
such
NIM Securities and (3) any other reimbursable expenses owed by the issuer of
the
NIM Securities (the “NIM Redemption Amount”); and provided, further, that if any
Cap Termination Payment or Swap Termination Payment is payable to the Cap
Provider or Swap Counterparty, as applicable, the Master Servicer may only
exercise its option if the Cap Provider or Swap Counterparty, as applicable,
does not object thereto in writing in a timely manner. The Master Servicer,
the
Servicer, the Trustee and the Custodian shall be reimbursed from the Repurchase
Xxxx 0-0 Xxxxxxxxxx Price for any Mortgage Loan in Pool 1, Pool 1C and Pool
2 or
related REO Property for any Advances made or other amounts advanced with
respect to the Mortgage Loans in Pool 1, Pool 1C and Pool 2 that are
reimbursable to any such entity under this Agreement, the related Servicing
Agreement or the Custodial Agreement, together with any accrued and unpaid
compensation and any other amounts due to the Master Servicer or the Trustee
hereunder or the applicable Servicer or the Custodian, to the extent such
amounts relate to the Mortgage Loans in Pool 1, Pool 1C and Pool 2. If the
Master Servicer fails to exercise such right, the NIMS Insurer will have the
option to direct the Master Servicer to exercise such option so long as it
is
insuring the NIM Securities or it is owed any amounts in connection with its
guaranty of the NIM Securities. Following receipt of such notice from the NIMS
Insurer, the Master Servicer shall advise the NIMS Insurer whether it will
exercise the option under this Section 7.01(b) for its own account and using
its
own funds, or whether it will exercise such option in its own name but for
the
NIMS Insurer’s account and utilizing the NIMS Insurer’s funds. If the Master
Servicer exercises such option for the NIMS Insurer’s account, the NIMS Insurer
will remit the Xxxx 0-0 Xxxxxxxxxx Price to the Master Servicer one Business
Day
prior to the day the Master Servicer is required to remit the Xxxx 0-0
Xxxxxxxxxx Price to the Trustee. Following its receipt from the NIMS Insurer
of
the entire Xxxx 0-0 Xxxxxxxxxx Price and its subsequent remittance to the
Trustee of the entire Xxxx 0-0 Xxxxxxxxxx Price, the Master Servicer will convey
to the NIMS Insurer all of the rights it receives from the Trustee with respect
to the related Mortgage Loans as a result of such remittance. Subject to Section
7.03, the Trustee shall distribute the assets of the Trust Fund related to
Pool
1, Pool 1C and Pool 2 on the Distribution Date on which the repurchase occurred.
If the NIMS Insurer directs the Master Servicer to exercise such right as
described above, then (i) the Master Servicer shall cause each related REMIC
to
adopt a plan of complete liquidation as described above and (ii) the NIMS
Insurer shall remit the Pool 1, Pool 1C and Pool 2 Repurchase Price in
immediately available funds to the Master Servicer at least three Business
Days
prior to the applicable Distribution Date and, upon receipt of such funds from
the NIMS Insurer, the Master Servicer shall promptly deposit such funds in
the
Collection Account. The NIMS Insurer shall be obligated to reimburse the Master
Servicer and the Trustee for their reasonable out-of-pocket expenses incurred
in
connection with the purchase of the Pool 1, Pool 1C and Pool 2 Mortgage Loans
and REO Property related to Pool 1, Pool 1C and Pool 2 at the direction of
the
NIMS Insurer and shall indemnify and hold harmless the Master Servicer and
the
Trustee for any losses, liabilities or expenses resulting from any claims
arising out of or based upon the Master Servicer’s or Trustee’s purchase of the
Pool 1-2 Assets at the direction of the NIMS Insurer at the direction of the
NIMS Insurer, except to the extent such losses, liabilities or expenses arise
out of or result from the Master Servicer’s or Trustee’s, as the case may be,
negligence, bad faith or willful misconduct. Notwithstanding anything herein
to
the contrary, only an amount not to exceed to the Xxxx 0-0 Xxxxxxxxxx Price,
reduced by the portion thereof consisting of any Swap Termination Payment (such
portion, the “Swap Optional Termination Payment”), shall be made available for
distribution to the Certificates. The Swap Optional Termination Payment shall
be
withdrawn by the Trustee from the Collection Account and remitted to the
Supplemental Interest Trust for payment to the Swap Counterparty. The Swap
Optional Termination Payment shall not be part of any REMIC and shall not be
paid into any account which is part of any REMIC.
-206-
(ii) For
Pool
3 and Pool 4 on any Distribution Date occurring on or after the Pool 3-4 Initial
Optional Termination Date, the Master Servicer, with the prior written consent
of any NIMS Insurer and the Seller, which consent shall not be unreasonably
withheld, has the option to cause each of the Stack II REMICs to adopt a plan
of
complete liquidation and to purchase the Pool 3 and Pool 4 Mortgage Loans and
any REO Property related to Pool 3 and Pool 4 (the “Pool 3-4 Assets”) for a
price equal to the Xxxx 0-0 Xxxxxxxxxx Price, pursuant to Section 7.03 hereof.
Upon exercise of such option, the Pool 3-4 Assets shall be sold to the Master
Servicer at a price (the “Pool 3-4 Repurchase Price”) equal to the sum of (i)
100% of the unpaid principal balance of each Mortgage Loan in Pool 3 and Pool
4
on the day of such purchase plus interest accrued thereon at the Mortgage Rate
with respect to such Mortgage Loan to the Due Date in the Collection Period
immediately preceding the Distribution Date on which the proceeds of such sale
will be distributed to the holders of the Group II Certificates, (ii) the fair
market value of any REO Property related to the Pool 3 and Pool 4 Mortgage
Loans
and any other property related to the Pool 3 and Pool 4 Mortgage Loans held
by
any REMIC, such fair market value to be determined by an independent appraiser
or appraisers mutually agreed upon by the Master Servicer, any NIMS Insurer
and
the Trustee (reduced, in the case of REO Property, by (1) reasonably anticipated
disposition costs and (2) any amount by which the fair market value as so
reduced exceeds the outstanding principal balance of the related Mortgage Loan
plus interest accrued thereon at the applicable Net Mortgage Rate to the date
of
such purchase) and (iii) any unreimbursed Servicing Advances and other amounts
to be reimbursed pursuant to the immediately following sentence related to
the
Pool 3 and Pool 4 Mortgage Loans; provided, however, if there are any NIM
Securities outstanding, the Master Servicer may only exercise its option after
receiving the prior written consent of the holders of such NIM Securities and,
if such consent is given, the Pool 3-4 Repurchase Price shall also include
an
amount equal to the sum of (1) any accrued interest on the NIM Securities
related to the Pool 3 and Pool 4 Mortgage Loans, (2) the unpaid principal
balance of any such NIM Securities and (3) any other reimbursable expenses
owed
by the issuer of the NIM Securities (the “NIM Redemption Amount”); and provided,
further, that if any Cap Termination payment is payable to the Cap Counterparty,
the Master Servicer may only exercise its option if the Cap Counterparty does
not object hereto in writing in a timely manner. The Master Servicer, the
Servicer, the Trustee and the Custodian shall be reimbursed from the Repurchase
Xxxx 0-0 Xxxxxxxxxx Price for any Mortgage Loan in Pool 3 and Pool 4 or related
REO Property for any Advances made or other amounts advanced with respect to
the
Mortgage Loans in Pool 3 and Pool 4 that are reimbursable to any such entity
under this Agreement, the related Servicing Agreement or the Custodial
Agreement, together with any accrued and unpaid compensation and any other
amounts due to the Master Servicer or the Trustee hereunder or the applicable
Servicer or the Custodian, to the extent such amounts relate to the Mortgage
Loans in Pool 3 and Pool 4. If the Master Servicer fails to exercise such right,
the NIMS Insurer will have the option to direct the Master Servicer to exercise
such option so long as it is insuring the NIM Securities or it is owed any
amounts in connection with its guaranty of the NIM Securities. Following receipt
of such notice from the NIMS Insurer, the Master Servicer shall advise the
NIMS
Insurer whether it will exercise the option under this Section 7.01(b) for
its
own account and using its own funds, or whether it will exercise such option
in
its own name but for the NIMS Insurer’s account and utilizing the NIMS Insurer’s
funds. If the Master Servicer exercises such option for the NIMS Insurer’s
account, the NIMS Insurer will remit the Xxxx 0-0 Xxxxxxxxxx Price to the Master
Servicer one Business Day prior to the day the Master Servicer is required
to
remit the Xxxx 0-0 Xxxxxxxxxx Price to the Trustee. Following its receipt from
the NIMS Insurer of the entire Xxxx 0-0 Xxxxxxxxxx Price and its subsequent
remittance to the Trustee of the entire Xxxx 0-0 Xxxxxxxxxx Price, the Master
Servicer will convey to the NIMS Insurer all of the rights it receives from
the
Trustee with respect to the related Mortgage Loans as a result of such
remittance. The Certificate Insurer shall be reimbursed from the Xxxx 0-0
Xxxxxxxxxx Price for any Reimbursement Amount due to the Certificate Insurer
under the Commitment Letter or the Certificate Insurance Policy. Subject to
Section 7.03, the Trustee shall distribute the assets of the Trust Fund related
to Pool 3 and Pool 4 on the Distribution Date on which the repurchase occurred.
If the NIMS Insurer directs the Master Servicer to exercise such right as
described above, then (i) the Master Servicer shall cause each related REMIC
to
adopt a plan of complete liquidation as described above and (ii) the NIMS
Insurer shall remit the Xxxx 0-0 Xxxxxxxxxx Price in immediately available
funds
to the Master Servicer at least three Business Days prior to the applicable
Distribution Date and, upon receipt of such funds from the NIMS Insurer, the
Master Servicer shall promptly deposit such funds in the Collection Account.
The
NIMS Insurer shall be obligated to reimburse the Master Servicer and the Trustee
for their reasonable out-of-pocket expenses incurred in connection with the
purchase of the Pool 3 and Pool 4 Mortgage Loans and REO Property related to
Pool 3 and Pool 4 at the direction of the NIMS Insurer and shall indemnify
and
hold harmless the Master Servicer and the Trustee for any losses, liabilities
or
expenses resulting from any claims arising out of or based upon the Master
Servicer’s or Trustee’s purchase of the Pool 3-4 Assets at the direction of the
NIMS Insurer at the direction of the NIMS Insurer, except to the extent such
losses, liabilities or expenses arise out of or result from the Master
Servicer’s or Trustee’s, as the case may be, negligence, bad faith or willful
misconduct.
-207-
(iii) Upon
the
later of the exercise by the Master Servicer of the initial purchase option
with
respect to (a) Pool 1, Pool 1C and Pool 2 or (b) Pool 3 and Pool 4, the Trust
Fund will be terminated.
(iv) For
purposes of the REMIC provisions, any NIM Redemption Amount or Cap Termination
Payment shall not be treated as having been paid into any REMIC.
Section
7.02. Procedure
Upon Termination of Trust Fund.
(a) Notice
of
any termination pursuant to the provisions of Section 7.01 (or the retirement
of
Certificates related to Pool 0, Xxxx 0X, Xxxx 2 and Pool 3 or Pool 4, as
applicable), specifying the Distribution Date upon which the final distribution
shall be made, shall be given promptly by the Trustee by first class mail to
the
Certificateholders and any NIMS Insurer, mailed upon (x) no later than five
Business Days after the Trustee has received notice from the Master Servicer
of
its intent to exercise its right to cause the termination of the Trust Fund
pursuant to Section 7.01(b) (or the retirement of Certificates related to Pool
0, Xxxx 0X, Xxxx 2 and Pool 3 or Pool 4, as applicable, to the extent that
not
all of the Mortgage Pools are terminated pursuant to such Section 7.01(b))
or
(y) upon final payment or other liquidation of the last Mortgage Loan or REO
Property in the Trust Fund. Such notice shall specify (A) the Distribution
Date
upon which final distribution on the Certificates of all amounts required to
be
distributed to Certificateholders pursuant to Section 5.02 will be made upon
presentation and surrender of the related Certificates at the Corporate Trust
Office, and (B) that the Record Date otherwise applicable to such Distribution
Date is not applicable, distribution being made only upon presentation and
surrender of the related Certificates at the office or agency of the Trustee
therein specified. The Trustee shall give such notice to the Master Servicer,
the Swap Counterparty and the Certificate Registrar at the time such notice
is
given to Holders of the related Certificates. The Master Servicer shall give
notice to the Swap Counterparty on the date the Master Servicer elects its
option pursuant to Section 7.01(b). Upon any termination pursuant to Section
7.01(b), the duties of the Certificate Registrar with respect to the applicable
Certificates shall terminate and the Trustee shall terminate or request the
Master Servicer to terminate, the Collection Account it maintains, the
Certificate Account and any other account or fund maintained with respect to
the
related Certificates, subject to the Trustee’s obligation hereunder to hold all
amounts payable to Certificateholders in trust without interest pending such
payment.
-208-
(b) In
the
event that all of the Holders do not surrender their Certificates for
cancellation within three months after the time 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 one year after the second
notice any Certificates shall not have been surrendered for cancellation, the
Trustee may take appropriate steps to contact the remaining Certificateholders
concerning surrender of such Certificates, and the cost thereof shall be paid
out of the amounts distributable to such Holders. If within two years after
the
second notice any Certificates shall not have been surrendered for cancellation,
the Trustee shall, subject to applicable state law relating to escheatment,
hold
all amounts distributable to such Holders for the benefit of such Holders.
No
interest shall accrue on any amount held by the Trustee and not distributed
to a
Certificateholder due to such Certificateholder’s failure to surrender its
Certificate(s) for payment of the final distribution thereon in accordance
with
this Section.
(c) Any
reasonable expenses incurred by the Trustee in connection with any termination
or liquidation of the Trust Fund (or a Mortgage Pool thereof) shall be
reimbursed from proceeds received from the liquidation of the related Mortgage
Pool or Mortgage Pools.
Section
7.03. Additional
Trust Fund Termination Requirements.
Any
sale
pursuant to Section 7.01(b) shall be effected in accordance with the following
additional requirements, unless the Trustee seeks (at the request of the party
exercising the option to repurchase all of the Mortgage Loans pursuant to
Section 7.01(b)), and subsequently receives, an Opinion of Counsel (at the
expense of such requesting party), addressed to the Trustee and any NIMS Insurer
to the effect that the failure of the Trust Fund to comply with the requirements
of this Section 7.03 will not (I) result in the imposition of taxes on any
REMIC
under the REMIC Provisions or (II) cause any REMIC established hereunder to
fail
to qualify as a REMIC at any time that any Certificates are
outstanding:
-209-
(i) On
the
date specified for final payment of the Certificates, the Trustee shall make
final distributions of principal and interest on the Certificates and shall
pay
any Swap Termination Payment owed to the Swap Counterparty on the related Swap
Payment Date (to the extent not paid on previous Swap Payment Dates) in
accordance with Section 5.02 and, after payment of, or provision for any
outstanding expenses, distribute or credit, or cause to be distributed or
credited, to the Holders of the Residual Certificates all cash on hand after
such final payment (other than cash retained to meet claims), and the Trust
Fund
(and each related REMIC) shall terminate at that time;
(ii) In
the
case of a sale of the assets of Pool 1, Pool 1C and Pool 2:
(A) The
Trustee shall sell all of the assets of Pool 1, Pool 1C and Pool 2 for cash
and,
within 90 days of such sale, shall distribute the proceeds of such sale to
the
Certificateholders in complete liquidation of each of the Stack I REMICs;
and
(B) The
Trustee shall attach a statement to the final Federal income tax return for
each
of the Stack I REMICs stating that pursuant to Treasury Regulation § 1.860F-1,
the first day of the 90-day liquidation period for each such REMIC was the
date
on which the Trustee sold such assets.
(iii) In
the
case of a sale of the assets of Pool 3 and Pool 4:
(A) The
Trustee shall sell all of the assets of Pool 3 and Pool 4 for cash and, within
90 days of such sale, shall distribute the proceeds of such sale to the
Certificateholders in complete liquidation of each of the Stack II REMICs;
and
(B) The
Trustee shall attach a statement to the final Federal income tax return for
each
of the Stack II REMICs stating that pursuant to Treasury Regulation § 1.860F-1,
the first day of the 90-day liquidation period for each such REMIC was the
date
on which the Trustee sold such assets.
Section
7.04. Optional
Purchase Right of NIMS Insurer
The
NIMS
Insurer may purchase any Distressed Mortgage Loan for a purchase price equal
to
the outstanding principal balance of such Mortgage Loan, plus accrued interest
thereon to the date of repurchase plus any unreimbursed Advances, Servicing
Advances, General Servicing Fees, Servicing Fees or Trustee Fees and any
unreimbursed expenses of the Trustee allocable to such Distressed Mortgage
Loan.
Any such purchase shall be accomplished by the NIM Insurer’s remittance of the
purchase price for the Distressed Mortgage Loan to the Master Servicer for
deposit into the Collection Account.
-210-
Section
7.05. Grantor
Trust Termination
The
Class
4-A1 Grantor Trust, Class 4-A2A Grantor Trust, Class 4-A2B Grantor Trust and
Class 4-A3B Grantor Trust each will terminate on the earlier of the date on
which the Class Principal Amount of the related Grantor Trust Certificate is
reduced to zero and the termination of this Agreement.
ARTICLE
VIII.
RIGHTS
OF CERTIFICATEHOLDERS
Section
8.01. Limitation
on Rights of Holders
(a) The
death
or incapacity of any Certificateholder shall not operate to terminate this
Agreement or this Trust Fund, nor entitle such Certificateholder’s legal
representatives or heirs to claim an accounting or take any action or proceeding
in any court for a partition or winding up of this Trust Fund, nor otherwise
affect the rights, obligations and liabilities of the parties hereto or any
of
them. Except as otherwise expressly provided herein, no Certificateholder,
solely by virtue of its status as a Certificateholder, shall have any right
to
vote or in any manner otherwise control the Master Servicer or the operation
and
management of the Trust Fund, or the obligations of the parties hereto, nor
shall anything herein set forth, or contained in the terms of 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 under
any liability to any third person by reason of any action taken by the parties
to this Agreement pursuant to any provision hereof.
(b) No
Certificateholder, solely by virtue of its status as Certificateholder, shall
have any right by virtue or by availing of any provision 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 hereinbefore provided, and unless also the Holders of Certificates
evidencing not less than 25% of the Class Principal Amount or Class Notional
Amount (or Percentage Interest) of Certificates of each Class affected thereby
shall have made written request upon 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 cost, expenses
and liabilities to be incurred therein or thereby, and the Trustee, for sixty
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
and
no direction inconsistent with such written request has been given such Trustee
during such sixty day period by such Certificateholders; it being understood
and
intended, and being expressly covenanted by each Certificateholder 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 of any provision of this Agreement to affect, disturb or prejudice
the
rights of the Holders of any other of such 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
benefit of all Certificateholders. For the protection and enforcement of the
provisions of this Section, each and every Certificateholder and the Trustee
shall be entitled to such relief as can be given either at law or in
equity.
-211-
Section
8.02. Access
to List of Holders
(a) If
the
Trustee is not acting as Certificate Registrar, the Certificate Registrar will
furnish or cause to be furnished to the Trustee, within fifteen days after
receipt by the Certificate Registrar of a request by the Trustee in writing,
a
list, in such form as the Trustee may reasonably require, of the names and
addresses of the Certificateholders of each Class as of the most recent Record
Date.
(b) If
three
or more Holders or Certificate Owners (hereinafter referred to as “Applicants”)
apply in writing to the Trustee, and such application states that the Applicants
desire to communicate with other Holders with respect to their rights under
this
Agreement or under the Certificates and is accompanied by a copy of the
communication which such Applicants propose to transmit, then the Trustee shall,
within five Business Days after the receipt of such application, afford such
Applicants reasonable access during the normal business hours of the Trustee
to
the most recent list of Certificateholders held by the Trustee or shall, as
an
alternative, send, at the Applicants’ expense, the written communication
proffered by the Applicants to all Certificateholders at their addresses as
they
appear in the Certificate Register.
(c) Every
Holder or Certificate Owner, if the Holder is a Clearing Agency, by receiving
and holding a Certificate, agrees with the Depositor, the Master Servicer,
the
Certificate Registrar and the Trustee, that none of the Depositor, the Master
Servicer, the Certificate Registrar, the Paying Agent or the Trustee shall
be
held accountable by reason of the disclosure of any such information as to
the
names and addresses of the Certificateholders hereunder, regardless of the
source from which such information was derived.
Section
8.03. Acts
of Holders of Certificates
(a) Any
request, demand, authorization, direction, notice, consent, waiver or other
action provided by this Agreement to be given or taken by Holders or Certificate
Owner, if the Holder is a Clearing Agency, may be embodied in and evidenced
by
one or more instruments of substantially similar tenor signed by such Holders
in
person or by agent duly appointed in writing; and, except as herein otherwise
expressly provided, such action shall become effective when such instrument
or
instruments are delivered to the Trustee, the Certificate Registrar and the
Paying Agent and, where expressly required herein, to the Master Servicer.
Such
instrument or instruments (as the action embodies therein and evidenced thereby)
are herein sometimes referred to as an “act” of the Holders signing such
instrument or instruments. Proof of execution of any such instrument or of
a
writing appointing any such agents shall be sufficient for any purpose of this
Agreement and conclusive in favor of the Trustee and the Master Servicer, if
made in the manner provided in this Section. Each of the Trustee and the Master
Servicer shall promptly notify the other of receipt of any such instrument
by
it, and shall promptly forward a copy of such instrument to the
other.
(b) The
fact
and date of the execution by any Person of any such instrument or writing may
be
proved by the affidavit of a witness of such execution or by the certificate
of
any notary public or other officer authorized by law to take acknowledgments
or
deeds, certifying that the individual signing such instrument or writing
acknowledged to him the execution thereof. Whenever such execution is by an
officer of a corporation or a member of a partnership on behalf of such
corporation or partnership, such certificate or affidavit shall also constitute
sufficient proof of his authority. The fact and date of the execution of any
such instrument or writing, or the authority of the individual executing the
same, may also be proved in any other manner which the Trustee deems
sufficient.
-212-
(c) The
ownership of Certificates (whether or not such Certificates shall be overdue
and
notwithstanding any notation of ownership or other writing thereon made by
anyone other than the Trustee) shall be proved by the Certificate Register,
and
none of the Trustee, the Master Servicer, the Paying Agent or the Depositor
shall be affected by any notice to the contrary.
(d) Any
request, demand, authorization, direction, notice, consent, waiver or other
action by the Holder of any Certificate shall bind every future Holder of the
same Certificate and the Holder of every Certificate issued upon the
registration of transfer thereof or in exchange therefor or in lieu thereof,
in
respect of anything done, omitted or suffered to be done by the Trustee or
the
Master Servicer in reliance thereon, whether or not notation of such action
is
made upon such Certificate.
ARTICLE
IX.
ADMINISTRATION
AND SERVICING OF MORTGAGE LOANS
BY
THE MASTER SERVICER
Section
9.01. Duties
of the Master Servicer
The
Certificateholders, by their purchase and acceptance of the Certificates,
appoint Aurora Loan Services LLC, as Master Servicer. For and on behalf of
the
Depositor, the Trustee and the Certificateholders, the Master Servicer shall
master service the Mortgage Loans in accordance with the provisions of this
Agreement and the provisions of the Servicing Agreements.
Section
9.02. Master
Servicer Fidelity Bond and Master Servicer Errors and Omissions Insurance
Policy
(a) The
Master Servicer, at its expense, shall maintain in effect a Master Servicer
Fidelity Bond and a Master Servicer Errors and Omissions Insurance Policy,
affording coverage with respect to all directors, officers, employees and other
Persons acting on such Master Servicer’s behalf, and covering errors and
omissions in the performance of the Master Servicer’s obligations hereunder. The
Master Servicer Errors and Omissions Insurance Policy and the Master Servicer
Fidelity Bond shall be in such form and amount that would meet the requirements
of Xxxxxx Xxx or Xxxxxxx Mac if it were the purchaser of the Mortgage Loans,
and
if the Master Servicer receives notice that such policy is or shall be
cancelled, it shall immediately notify the NIMS Insurer. The Master Servicer
shall provide the Trustee and any NIMS Insurer upon request, with a copy of
such
policy and fidelity bond. The Master Servicer shall (i) require each Servicer
to
maintain an Errors and Omissions Insurance Policy and the Servicer Fidelity
Bond
in accordance with the provisions of the applicable Servicing Agreement, (ii)
cause each Servicer to provide to the Master Servicer certificates evidencing
that such policy and bond is in effect and to furnish to the Master Servicer
any
notice of cancellation, non-renewal or modification of the policy or bond
received by it, as and to the extent provided in the applicable Servicing
Agreement, and (iii) furnish copies of such policies and of the certificates
and
notices referred to in clause (ii) to the Trustee upon request. The Fidelity
Bond and Errors and Omissions Insurance Policy may be obtained and maintained
in
blanket form.
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(b) The
Master Servicer shall promptly report to the Trustee any material changes that
may occur in the Master Servicer Fidelity Bond or the Master Servicer Errors
and
Omissions Insurance Policy and shall furnish to the Trustee, on request,
certificates evidencing that such bond and insurance policy are in full force
and effect. The Master Servicer shall promptly report to the Trustee all cases
of embezzlement or fraud, if such events involve funds relating to the Mortgage
Loans. The total losses, regardless of whether claims are filed with the
applicable insurer or surety, shall be disclosed in such reports together with
the amount of such losses covered by insurance. If a bond or insurance claim
report is filed with any of such bonding companies or insurers, the Master
Servicer shall promptly furnish a copy of such report to the Trustee. Any
amounts relating to the Mortgage Loans collected by the Master Servicer under
any such bond or policy shall be promptly remitted by the Master Servicer to
the
Trustee for deposit into the Certificate Account. Any amounts relating to the
Mortgage Loans collected by a Servicer under any such bond or policy shall
be
remitted to the Master Servicer to the extent provided in the applicable
Servicing Agreement.
Section
9.03. Master
Servicer’s Financial Statements and Related Information
For
each
year this Agreement is in effect, the Master Servicer shall submit to the
Trustee, each Rating Agency and the Depositor a copy of its corporate parent’s
audited financial statements on or prior to March 31 of each year, beginning
March 31, 2008. Such financial statements shall include comparative balance
sheets, income statements, statement of changes in shareholder’s equity,
statements of cash flows, a consolidating schedule showing consolidated
subsidiaries and any related notes required pursuant to generally accepted
accounting principles, certified by a nationally recognized firm of Independent
Accountants to the effect that such financial statements were examined and
prepared in accordance with generally accepted accounting principles applied
on
a basis consistent with that of the preceding year.
Section
9.04. Power
to Act; Procedures.
-214-
(a) The
Master Servicer shall master service the Mortgage Loans and shall have full
power and authority, subject to the REMIC Provisions and the provisions of
Article X hereof, and each Servicer shall have full power and authority (to
the
extent provided in the applicable Servicing Agreement) to do any and all things
that it may deem necessary or desirable in connection with the servicing and
administration of the Mortgage Loans, including but not limited to the power
and
authority (i) to execute and deliver, on behalf of the Certificateholders and
the Trustee, customary consents or waivers and other instruments and documents,
(ii) to consent to transfers of any Mortgaged Property and assumptions of the
Mortgage Notes and related Mortgages, (iii) to collect any Insurance Proceeds
and Liquidation Proceeds, and (iv) to effectuate foreclosure or other conversion
of the ownership of the Mortgaged Property securing any Mortgage Loan, in each
case, in accordance with the provisions of this Agreement and the applicable
Servicing Agreement, as applicable; provided that the Master Servicer shall
not
take, or knowingly permit any Servicer to take, any action that is inconsistent
with or prejudices the interests of the Trust Fund or the Certificateholders
in
any Mortgage Loan or the rights and interests of the Depositor, the Trustee,
or
the Certificateholders under this Agreement. 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 any Servicer (to the extent
permitted in the applicable Servicing Agreement), when the Master Servicer
or a
Servicer, as the case may be, believes it is appropriate in its best judgment
to
register any Mortgage Loan with MERS, or cause the removal from the registration
of any Mortgage Loan on the MERS 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. The Master Servicer shall represent
and
protect the interests of the Trust Fund in the same manner as it protects its
own interests in mortgage loans in its own portfolio in any claim, proceeding
or
litigation regarding a Mortgage Loan and shall not make or knowingly permit
any
Servicer to make any modification, waiver or amendment of any term of any
Mortgage Loan that would cause an Adverse REMIC Event. Without limiting the
generality of the foregoing, the Master Servicer in its own name or in the
name
of a Servicer, and each Servicer, to the extent such authority is delegated
to
such Servicer under the applicable Servicing Agreement, is hereby authorized
and
empowered by the Trustee when the Master Servicer or a Servicer, as the case
may
be, believes it appropriate in its best judgment and in accordance with Accepted
Servicing Practices and the applicable Servicing Agreement, to execute and
deliver, on behalf of itself and the Certificateholders, the Trustee or any
of
them, any and all 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. The Trustee
shall execute, upon request, any powers of attorney furnished to it by the
Master Servicer empowering the Master Servicer or such Servicer to execute
and
deliver instruments of satisfaction or cancellation, or of partial or full
release or discharge, and to foreclose upon or otherwise liquidate Mortgaged
Property, and to appeal, prosecute or defend in any court action relating to
the
Mortgage Loans or the Mortgaged Property, in accordance with the applicable
Servicing Agreement and this Agreement, and the Trustee shall execute and
deliver such other documents, as the Master Servicer may request, necessary
or
appropriate to enable the Master Servicer to master service the Mortgage Loans
and carry out its duties hereunder and to allow each Servicer to service the
Mortgage Loans, in each case in accordance with Accepted Servicing Practices
(and the Trustee shall have no liability for misuse of any such powers of
attorney by the Master Servicer or the applicable Servicer). If the Master
Servicer or the Trustee has been advised that it is likely that the laws of
the
state in which action is to be taken prohibit such action if taken in the name
of the Trustee or that the Trustee would be adversely affected under the “doing
business” or tax laws of such state if such action is taken in its name, then
upon request of the Trustee the Master Servicer shall join with the Trustee
in
the appointment of a co-trustee pursuant to Section 6.09 hereof. In the
performance of its duties hereunder, the Master Servicer shall be an independent
contractor and shall not, except in those instances where it is taking action
in
the name of the Trustee, be deemed to be the agent of the Trustee.
Notwithstanding anything to the contrary, the Master Servicer shall not without
the Trustee’s written consent: (i) initiate any action, suit or proceeding
solely under the Trustee’s name without indicating the Master Servicer’s
representative capacity or (ii) take any action with the intent to cause, and
which actually does cause, the Trustee to be registered to do business in any
state.
-215-
(b) In
master
servicing and administering the Mortgage Loans, the Master Servicer shall employ
procedures, and shall exercise the same care that it customarily employs and
exercises master servicing and administering loans for its own account, giving
due consideration to Accepted Servicing Practices where such practices do not
conflict with this Agreement. Consistent with the foregoing, the Master Servicer
may, and may permit the Servicer to, in its discretion (i) waive any late
payment charge (but not any Prepayment Premium, except as set forth below)
and
(ii) extend the due dates for payments due on a Mortgage Note. In the event
of
any extension described in clause (ii) above, the Master Servicer shall make
or
cause the applicable Servicer (if required by the related Servicing Agreement)
to make Advances on the related Mortgage Loan in accordance with the provisions
of Section 5.04 on the basis of the amortization schedule of such Mortgage
Loan
with modification thereof by reason of such extension. Notwithstanding anything
to the contrary in this Agreement, the Master Servicer shall not make or
knowingly permit any modification, waiver or amendment of any material term
of
any Mortgage Loan unless: (1) such Mortgage Loan is in default or default by
the
related Mortgagor is, in the reasonable judgment of the Master Servicer or
the
applicable Servicer, reasonably foreseeable, (2) in the case of a waiver of
a
Prepayment Premium (a) if such waiver would maximize recovery of total proceeds
taking into account the value of such Prepayment Premium and the related
Mortgage Loan or (b) if the prepayment is not the result of a refinancing by
the
Servicer or any of its Affiliates (i) the collection of the Prepayment Premium
would be in violation of applicable laws or (ii) the collection of such
Prepayment Premium would be considered “predatory” pursuant to written guidance
published or issued by any applicable federal, state or local regulatory
authority acting in its official capacity and having jurisdiction over such
matters and (3) such modification, waiver or amendment would not cause an
Adverse REMIC Event.
Section
9.05. Enforcement
of Servicers’ and Master Servicer’s Obligations.
(a) Each
Servicing Agreement requires the applicable Servicer to service the Mortgage
Loans in accordance with the provisions thereof. References in this Agreement
to
actions taken or to be taken by the Master Servicer include actions taken or
to
be taken by a Servicer on behalf of the Master Servicer. Any fees, costs,
expenses and other amounts payable to such Servicer shall be deducted from
amounts remitted to the Master Servicer by the Servicer to the extent permitted
by the applicable Servicing Agreement and shall not be an obligation of the
Trust Fund, the Trustee or the Master Servicer.
(b) The
Master Servicer shall not be required to (i) take any action with respect to
the
servicing of any Mortgage Loan that the applicable Servicer is not required
to
take under the related Servicing Agreement and (ii) cause a Servicer to take
any
action or refrain from taking any action if the related Servicing Agreement
does
not require such Servicer to take such action or refrain from taking such
action; in both cases notwithstanding any provision of this Agreement that
requires the Master Servicer to take such action or cause such Servicer to
take
such action.
-216-
(c) The
Master Servicer, for the benefit of the Trustee and the Certificateholders,
shall use its reasonable best efforts to enforce the obligations of each
Servicer under the related Servicing Agreement, and shall, upon obtaining actual
knowledge of the failure of a Servicer to perform its obligations in accordance
therewith, to the extent that such non-performance of such obligations would
have a material adverse effect on a Mortgage Loan, the Trust Fund or the
Certificateholders (determined in the case of the Guaranteed Certificates
without regard to the Certificate Insurance Policy), terminate the rights and
obligations of such Servicer thereunder and either act as servicer of the
related Mortgage Loans or cause the other parties hereto to enter into a
Servicing Agreement (and such parties hereby agree to execute and deliver any
such successor Servicing Agreement), with a successor Servicer. Such
enforcement, including, without limitation, the legal prosecution of claims,
termination of Servicing Agreements and the pursuit of other appropriate
remedies, shall be in such form and carried out to such an extent and at such
time as the Master Servicer, in its good faith business judgment, would require
were it the owner of the related Mortgage Loans. The Master Servicer shall
pay
the costs of such enforcement at its own expense, and shall be reimbursed
therefor initially (i) from a general recovery resulting from such enforcement
only to the extent, if any, that such recovery exceeds all amounts due in
respect of the related Mortgage Loans, (ii) from a specific recovery of costs,
expenses or attorneys’ fees against the party against whom such enforcement is
directed, and then, (iii) to the extent that such amounts are insufficient
to
reimburse the Master Servicer for the costs of such enforcement, from the
Collection Account.
(d) The
Master Servicer shall be entitled to conclusively rely on any certifications
or
other information provided by the Servicers under the terms of the applicable
Servicing Agreement, in its preparation of any certifications, notifications,
filings or reports, in accordance with the terms hereof or as may be required
by
applicable law or regulation.
Section
9.06. Collection
of Taxes, Assessments and Similar Items.
(a) To
the
extent provided in the applicable Servicing Agreement, the Master Servicer
shall
cause each Servicer to establish and maintain one or more custodial accounts
at
a depository institution (which may be a depository institution with which
the
Master Servicer or the Servicer establishes accounts in the ordinary course
of
its servicing activities), the accounts of which are insured to the maximum
extent permitted by the FDIC (each, an “Escrow Account”) and to deposit therein
any collections of amounts received with respect to amounts due for taxes,
assessments, water rates, Standard Hazard Insurance Policy premiums, Payaheads,
if applicable, or any comparable items for the account of the Mortgagors.
Withdrawals from any Escrow Account may be made (to the extent amounts have
been
escrowed for such purpose) only in accordance with the Servicing Agreements.
Each Servicer shall be entitled to all investment income not required to be
paid
to Mortgagors on any Escrow Account maintained by such Servicer. The Master
Servicer shall make (or cause to be made) to the extent provided in the
applicable Servicing Agreement advances to the extent necessary in order to
effect timely payment of taxes, water rates, assessments, Standard Hazard
Insurance Policy premiums or comparable items in connection with the related
Mortgage Loan (to the extent that the Mortgagor is required, but fails, to
pay
such items), provided that it or the applicable Servicer has determined that
the
funds so advanced are recoverable from escrow payments, reimbursement pursuant
to Section 4.02 or otherwise.
-217-
(b) Costs
incurred by the Master Servicer or by the Servicers in effecting the timely
payment of taxes and assessments on the properties subject to the Mortgage
Loans
may be added to the amount owing under the related Mortgage Note where the
terms
of the Mortgage Note so permit; provided, however, that the addition of any
such
cost shall not be taken into account for purposes of calculating the
distributions to be made to Certificateholders. Such costs, to the extent that
they are unanticipated, extraordinary costs, and not ordinary or routine costs
shall be recoverable as a Servicing Advance by the Master Servicer pursuant
to
Section 4.02.
Section
9.07. Termination
of Servicing Agreements; Successor Servicers.
(a) The
Master Servicer shall be entitled to terminate the rights and obligations of
any
Servicer under the applicable Servicing Agreement in accordance with the terms
and conditions of such Servicing Agreement and without any limitation by virtue
of this Agreement; provided, however, that in the event of termination of any
Servicing Agreement by the Master Servicer or a related Servicer, the Master
Servicer shall either act as Servicer of the related Mortgage Loans or provide
for the servicing of the Mortgage Loans by a successor Servicer to be appointed
as provided in the related Servicing Agreement.
The
parties acknowledge that notwithstanding the preceding sentence, there may
be a
transition period, not to exceed 90 days, in order to effect the transfer of
servicing to a successor Servicer. The Master Servicer shall be entitled to
be
reimbursed from each Servicer (or by the Trust Fund, if such Servicer is unable
to fulfill its obligations hereunder) for all costs associated with the transfer
of servicing from the predecessor servicer, including without limitation, any
costs or expenses associated with the complete transfer of all servicing data
and the completion, correction or manipulation of such servicing data, as may
be
required by the Master Servicer to correct any errors or insufficiencies in
the
servicing data or otherwise to enable the Master Servicer to service the
Mortgage Loans properly and effectively.
(b) If
the
Master Servicer acts as a successor Servicer, it will not assume liability
for
the representations and warranties of the Servicer, if any, that it replaces.
The Master Servicer shall use reasonable efforts to have the successor Servicer
assume liability for the representations and warranties made by the terminated
Servicer in the related Servicing Agreement, and in the event of any such
assumption by the successor Servicer, the Trustee or the Master Servicer, as
applicable, may, in the exercise of its business judgment, release the
terminated Servicer from liability for such representations and
warranties.
(c) If
the
Master Servicer acts as a successor servicer, it will have no obligation to
make
an Advance if it determines in its reasonable judgment that such Advance is
non-recoverable. To the extent that the Master Servicer is unable to find a
successor servicer that is willing to service the Mortgage Loans for the
Servicing Fee because of the obligation of the servicer to make Advances
regardless of whether such Advance is recoverable, the applicable Servicing
Agreement may be amended to provide that the successor servicer shall have
no
obligation to make an Advance if it determines in its reasonable judgment that
such Advance is non-recoverable and provides an Officer’s Certificate to such
effect to the Master Servicer and the Trustee.
-218-
Section
9.08. Master
Servicer Liable for Enforcement.
Notwithstanding
any Servicing Agreement, the Master Servicer shall remain obligated and liable
to the Trustee and the Certificateholders in accordance with the provisions
of
this Agreement, to the extent of its obligations hereunder, without diminution
of such obligation or liability by virtue of such Servicing Agreements. The
Master Servicer shall use commercially reasonable efforts to ensure that the
Mortgage Loans are serviced in accordance with the provisions of this Agreement
and shall use commercially reasonable efforts to enforce the provisions of
each
Servicing Agreement for the benefit of the Certificateholders. The Master
Servicer shall be entitled to enter into any agreement with the Servicers for
indemnification of the Master Servicer and nothing contained in this Agreement
shall be deemed to limit or modify such indemnification. Except as expressly
set
forth herein, the Master Servicer shall have no liability for the acts or
omissions of any Servicer in the performance by such Servicer of its obligations
under the related Servicing Agreement.
Section
9.09. No
Contractual Relationship Between the Servicer, Any NIMS Insurer and Trustee
or
Depositor.
Any
Servicing Agreement and any other transactions or services relating to the
Mortgage Loans involving a Servicer in its capacity as such and not as an
originator shall be deemed to be between such Servicer, the Seller and the
Master Servicer, and the Trustee and the Depositor shall not be deemed parties
thereto and shall have no obligations, duties or liabilities with respect to
such Servicer except as set forth in Section 9.10 hereof, but shall have rights
thereunder as third party beneficiaries.
Section
9.10. Assumption
of Servicing Agreement by the Trustee.
(a) In
the
event the Master Servicer shall for any reason no longer be the Master Servicer
(including by reason of any Event of Default under this Agreement), after a
period not to exceed ninety days after the issuance of any notice of termination
pursuant to Section 6.14 or Section 9.28, as applicable, the Trustee, or a
successor master servicer appointed by it in accordance with Section 6.14,
shall
assume all of the rights and obligations of such Master Servicer hereunder
and
under each Servicing Agreement entered into with respect to the Mortgage Loans.
The Trustee, its designee or any successor master servicer appointed by the
Trustee shall be deemed to have assumed all of the Master Servicer’s interest
herein and therein to the same extent as if such Servicing Agreement had been
assigned to the assuming party, except that the Master Servicer shall not
thereby be relieved of any liability or obligations of the Master Servicer
under
such Servicing Agreement accruing prior to its replacement as Master Servicer,
and shall be liable to the Trustee, and hereby agrees to indemnify and hold
harmless the Trustee from and against all costs, damages, expenses and
liabilities (including reasonable attorneys’ fees) incurred by the Trustee as a
result of such liability or obligations of the Master Servicer and in connection
with the Trustee’s assumption (but not its performance, except to the extent
that costs or liability of the Trustee are created or increased as a result
of
negligent or wrongful acts or omissions of the Master Servicer prior to its
replacement as Master Servicer) of the Master Servicer’s obligations, duties or
responsibilities thereunder; provided that the Master Servicer shall not
indemnify or hold harmless the Trustee against negligent or willful misconduct
of the Trustee.
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(b) The
Master Servicer that has been terminated shall, upon request of the Trustee
but
at the expense of such Master Servicer or at the expense of the Trust Fund,
deliver to the assuming party all documents and records relating to each
Servicing Agreement and the related Mortgage Loans and an accounting of amounts
collected and held by it and otherwise use its best efforts to effect the
orderly and efficient transfer of each Servicing Agreement to the assuming
party.
Section
9.11. Due-on-Sale
Clauses; Assumption Agreements; Easements.
(a) To
the
extent provided in the applicable Servicing Agreement, to the extent Mortgage
Loans contain enforceable due on sale clauses, and to the extent that the Master
Servicer has knowledge of the conveyance of a Mortgaged Property, the Master
Servicer shall use its reasonable best efforts to cause the Servicers to enforce
such clauses in accordance with the applicable Servicing Agreement. If
applicable law prohibits the enforcement of a due on sale clause or such clause
is otherwise not enforced in accordance with the applicable Servicing Agreement,
and, as a consequence, a Mortgage Loan is assumed, the original Mortgagor may
be
released from liability in accordance with the applicable Servicing
Agreement.
(b) The
Master Servicer or the related Servicer, as the case may be, shall be entitled
to approve a request from a Mortgagor for the granting of an easement thereon
in
favor of another Person or any alteration or demolition of the related Mortgaged
Property if it has determined, exercising its good faith business judgment
in
the same manner as it would if it were the owner of the related Mortgage Loan,
that the security for, and the timely and full collectability of, such Mortgage
Loan would not be materially adversely affected thereby. Any fee collected
by
the Master Servicer or the related Servicer for processing such a request will
be retained by the Master Servicer or such Servicer as additional servicing
compensation.
Section
9.12. Release
of Mortgage Files.
(a) Upon
(i)
becoming aware of the payment in full of any Mortgage Loan or (ii) the receipt
by the Master Servicer of a notification that payment in full has been or will
be escrowed in a manner customary for such purposes, the Master Servicer shall,
or shall cause the applicable Servicer to, promptly notify the Trustee (or
the
Custodian) by a certification (which certification shall include a statement
to
the effect that all amounts received in connection with such payment that are
required to be deposited in the Collection Account maintained by the Master
Servicer pursuant to Section 4.01 hereof have been or will be so deposited)
of a
Servicing Officer and shall request (on the form attached hereto as Exhibit
C or
on the form attached to the Custodial Agreement) the Trustee or the Custodian,
to deliver to the applicable Servicer the related Mortgage File; provided,
however, that in lieu of sending a hard copy certification of a Servicing
Officer, the Master Servicer may, or may cause the applicable Servicer to,
deliver the request for release in a mutually agreeable electronic format,
and
to the extent that such a request, on its face, originates from a Servicing
Officer, no original signature shall be required. Upon receipt of such
certification and request, the Trustee or the Custodian, shall promptly release
the related Mortgage File to the Servicer and neither the Trustee nor the
Custodian shall have any further responsibility with regard to such Mortgage
File. Upon any such payment in full, the Master Servicer is authorized, and
the
applicable Servicer, to the extent such authority is provided for under the
related Servicing Agreement, is authorized, to give, as agent for the Trustee,
as the mortgagee under the Mortgage that secured the Mortgage Loan, an
instrument of satisfaction (or assignment of mortgage without recourse)
regarding the Mortgaged Property subject to the Mortgage, which instrument
of
satisfaction or assignment, as the case may be, shall be delivered to the Person
or Persons entitled thereto against receipt therefor of such payment, it being
understood and agreed that no expenses incurred in connection with such
instrument of satisfaction or assignment, as the case may be, shall be
chargeable to the Collection Account.
-220-
(b) From
time
to time and as appropriate for the servicing or foreclosure of any Mortgage
Loan
and in accordance with Accepted Servicing Practices and the applicable Servicing
Agreement, the Trustee shall execute such documents as shall be prepared and
furnished to the Trustee by the Master Servicer, or by the applicable Servicer
(in form reasonably acceptable to the Trustee) and as are necessary to the
prosecution of any such proceedings. The Trustee or the Custodian, shall, upon
request of the Master Servicer, or of the applicable Servicer, and delivery
to
the Trustee or the Custodian, of a trust receipt signed by a Servicing Officer
substantially in the form of Exhibit C, release the related Mortgage File held
in its possession or control to the Master Servicer (or the applicable
Servicer). Such trust receipt shall obligate the Master Servicer or applicable
Servicer to return the Mortgage File to the Trustee or the Custodian, as
applicable, when the need therefor by the Master Servicer or applicable Servicer
no longer exists unless (i) the Mortgage Loan shall be liquidated, in which
case, upon receipt of a certificate of a Servicing Officer similar to that
hereinabove specified, the trust receipt shall be released by the Trustee or
the
Custodian, as applicable, to the Master Servicer (or the applicable Servicer)
or
(ii) the Mortgage File has been delivered directly or through a Servicer to
an
attorney, or to a public trustee or other public official as required by law,
for purposes of initiating or pursuing legal action or other proceedings for
the
foreclosure of the Mortgaged Property either judicially or non-judicially,
and
the Master Servicer has delivered directly or through a Servicer to the Trustee
a certificate of a Servicing Officer certifying as to the name and address
of
the Person to which such Mortgage File or such document was delivered and the
purpose of such delivery.
Section
9.13. Documents,
Records and Funds in Possession of Master Servicer To Be Held for
Trustee.
(a) The
Master Servicer shall transmit, or shall cause the applicable Servicer to
transmit, to the Trustee such documents and instruments coming into the
possession of the Master Servicer or such Servicer from time to time as are
required by the terms hereof or of the related Servicing Agreement to be
delivered to the Trustee or the Custodian. Any funds received by the Master
Servicer or by a Servicer in respect of any Mortgage Loan or which otherwise
are
collected by the Master Servicer or a Servicer as a Subsequent Recovery,
Liquidation Proceeds or Insurance Proceeds in respect of any Mortgage Loan
shall
be held for the benefit of the Trustee and the Certificateholders subject to
the
Master Servicer’s right to retain or withdraw from the Collection Account the
Master Servicing Fee, the General Servicing Fee and other amounts provided
in
this Agreement and to the right of each Servicer to retain its Servicing Fee
and
other amounts as provided in the Servicing Agreement. The Master Servicer shall,
and shall (to the extent provided in the applicable Servicing Agreement) cause
each Servicer to, provide access to information and documentation regarding
the
Mortgage Loans to the Trustee, its agents and accountants and any NIMS Insurer,
at any time upon reasonable request and during normal business hours, and to
Certificateholders that are savings and loan associations, banks or insurance
companies, the Office of Thrift Supervision, the FDIC and the supervisory agents
and examiners of such Office and Corporation or examiners of any other federal
or state banking or insurance regulatory authority if so required by applicable
regulations of the Office of Thrift Supervision or other regulatory authority,
such access to be afforded without charge but only upon reasonable request
in
writing and during normal business hours at the offices of the Master Servicer
designated by it. In fulfilling such a request the Master Servicer shall not
be
responsible for determining the sufficiency of such information. The Master
Servicer shall afford the NIMS Insurer, and shall (to the extent provided in
the
Servicing Agreement) cause the Servicer to afford the NIMS Insurer, upon
reasonable advance notice, during normal business hours access to all records
related to their respective rights and obligations hereunder and access to
officers of the Master Servicer and the Servicer responsible for such
obligations.
-221-
(b) All
Mortgage Files and funds collected or held by, or under the control of, the
Master Servicer, or any Servicer, in respect of any Mortgage Loans, whether
from
the collection of principal and interest payments or from a Subsequent Recovery,
Liquidation Proceeds or Insurance Proceeds, shall be held by the Master
Servicer, or by such Servicer, for and on behalf of the Trustee and the
Certificateholders and shall be and remain the sole and exclusive property
of
the Trustee; provided, however, that the Master Servicer and each Servicer
shall
be entitled to setoff against, and deduct from, any such funds any amounts
that
are properly due and payable to the Master Servicer or such Servicer under
this
Agreement or the applicable Servicing Agreement and shall be authorized to
remit
such funds to the Trustee in accordance with this Agreement.
(c) The
Master Servicer hereby acknowledges that concurrently with the execution of
this
Agreement, the Trustee shall own or, to the extent that a court of competent
jurisdiction shall deem the conveyance of the Mortgage Loans from the Seller
to
the Depositor not to constitute a sale, the Trustee shall have a security
interest in the Mortgage Loans and in all Mortgage Files representing such
Mortgage Loans and in all funds and investment property now or hereafter held
by, or under the control of, a Servicer or the Master Servicer that are
collected by such Servicer or the Master Servicer in connection with the
Mortgage Loans, whether as scheduled installments of principal and interest
or
as full or partial prepayments of principal or interest or as a Subsequent
Recovery, Liquidation Proceeds or Insurance Proceeds or otherwise, and in all
proceeds of the foregoing and proceeds of proceeds (but excluding any fee or
other amounts to which such Servicer is entitled under the applicable Servicing
Agreement, or the Master Servicer or the Depositor is entitled to hereunder);
and the Master Servicer agrees that so long as the Mortgage Loans are assigned
to and held by the Trustee or the Custodian, all documents or instruments
constituting part of the Mortgage Files, and such funds relating to the Mortgage
Loans which come into the possession or custody of, or which are subject to
the
control of, the Master Servicer or any Servicer shall be held by the Master
Servicer or such Servicer for and on behalf of the Trustee as the Trustee’s
agent and bailee for purposes of perfecting the Trustee’s security interest
therein as provided by the applicable Uniform Commercial Code or other
applicable laws.
(d) The
Master Servicer agrees that it shall not, and shall not authorize any Servicer
to, create, incur or subject any Mortgage Loans, or any funds that are deposited
in any Custodial Account, Escrow Account or the Collection Account, or any
funds
that otherwise are or may become due or payable to the Trustee, to any claim,
lien, security interest, judgment, levy, writ of attachment or other
encumbrance, nor assert by legal action or otherwise any claim or right of
setoff against any Mortgage Loan or any funds collected on, or in connection
with, a Mortgage Loan.
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Section
9.14. Representations
and Warranties of the Master Servicer.
(a) The
Master Servicer hereby represents and warrants to the Depositor, the Certificate
Insurer and the Trustee, for the benefit of the Certificateholders, as of the
Closing Date that:
(i) it
is
validly existing and in good standing under the laws of the State of Delaware,
and as Master Servicer has full power and authority to transact any and all
business contemplated by this Agreement and to execute, deliver and comply
with
its obligations under the terms of this Agreement, the execution, delivery
and
performance of which have been duly authorized by all necessary company action
on the part of the Master Servicer;
(ii) the
execution and delivery of this Agreement by the Master Servicer and its
performance and compliance with the terms of this Agreement will not (A) violate
the Master Servicer’s certificate of formation or limited liability company
agreement, (B) violate any law or regulation or any administrative decree or
order to which it is subject or (C) constitute a default (or an event which,
with notice or lapse of time, or both, would constitute a default) under, or
result in the breach of, any material contract, agreement or other instrument
to
which the Master Servicer is a party or by which it is bound or to which any
of
its assets are subject, which violation, default or breach would materially
and
adversely affect the Master Servicer’s ability to perform its obligations under
this Agreement;
(iii) this
Agreement constitutes, assuming due authorization, execution and delivery hereof
by the other respective parties hereto, a legal, valid and binding obligation
of
the Master Servicer, enforceable against it in accordance with the terms hereof,
except as such enforcement may be limited by bankruptcy, insolvency,
reorganization, moratorium and other laws affecting the enforcement of
creditors’ rights in general, and by general equity principles (regardless of
whether such enforcement is considered in a proceeding in equity or at
law);
(iv) the
Master Servicer is not in default with respect to any order or decree of any
court or any order or regulation of any federal, state, municipal or
governmental agency to the extent that any such default would materially and
adversely affect its performance hereunder;
(v) the
Master Servicer is not a party to or bound by any agreement or instrument or
subject to any certificate of formation or limited liability company agreement
provision, or any other company restriction or any judgment, order, writ,
injunction, decree, law or regulation that may materially and adversely affect
its ability as Master Servicer to perform its obligations under this Agreement
or that requires the consent of any third person to the execution of this
Agreement or the performance by the Master Servicer of its obligations under
this Agreement;
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(vi) no
litigation is pending or, to the best of the Master Servicer’s knowledge,
threatened against the Master Servicer which would prohibit its entering into
this Agreement or performing its obligations under this Agreement;
(vii) the
Master Servicer, or an Affiliate thereof the primary business of which is the
servicing of conventional residential mortgage loans, is a Xxxxxx Xxx- or
Xxxxxxx Mac-approved seller/servicer;
(viii) no
consent, approval, authorization or order of any court or governmental agency
or
body is required for the execution, delivery and performance by the Master
Servicer of or compliance by the Master Servicer with this Agreement or the
consummation of the transactions contemplated by this Agreement, except for
such
consents, approvals, authorizations and orders (if any) as have been
obtained;
(ix) the
consummation of the transactions contemplated by this Agreement are in the
ordinary course of business of the Master Servicer;
(x) the
Master Servicer has obtained an Errors and Omissions Insurance Policy and a
Fidelity Bond in accordance with Section 9.02 each of which is in full force
and
effect, and each of which provides at least such coverage as is required
hereunder; and
(xi) the
information about the Master Servicer under the heading “The Master Servicer” in
the Prospectus relating to the Master Servicer does not include an untrue
statement of a material fact and does not omit to state a material fact, with
respect to the statements made, necessary in order to make the statements in
light of the circumstances under which they were made not
misleading.
(b) It
is
understood and agreed that the representations and warranties set forth in
this
Section 9.14 shall survive the execution and delivery of this Agreement. The
Master Servicer shall indemnify the Depositor, the Certificate Insurer and
the
Trustee and hold them harmless against any loss, damages, penalties, fines,
forfeitures, legal fees and related costs, judgments, and other costs and
expenses arising out of or based upon any claim, demand, defense or assertion
based on or grounded upon, or resulting from, a breach of the Master Servicer’s
representations and warranties contained in Section 9.14(a). It is understood
and agreed that the enforcement of the obligation of the Master Servicer set
forth in this Section to indemnify the Depositor, the Certificate Insurer and
the Trustee as provided in this Section constitutes the sole remedy (other
than
as set forth in Section 6.14) of the Depositor, the Certificate Insurer and
the
Trustee, respecting a breach of the foregoing representations and warranties.
Such indemnification shall survive any termination of the Master Servicer as
Master Servicer hereunder, and any termination of this Agreement.
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Any
cause
of action against the Master Servicer relating to or arising out of the breach
of any representations and warranties made in this Section shall accrue upon
discovery of such breach by any of the Depositor, the Master Servicer, the
Certificate Insurer, any NIMS Insurer or the Trustee or notice thereof by any
one of such parties to the other parties. Notwithstanding anything in this
Agreement to the contrary, the Master Servicer shall not be liable for special,
indirect or consequential losses or damages of any kind whatsoever (including,
but not limited to, lost profits).
(c) It
is
understood and agreed that the representations and warranties of the Depositor
set forth in Sections 2.03(a)(i) through (vi) shall survive the execution and
delivery of this Agreement. The Depositor shall indemnify the Master Servicer
and hold it harmless against any loss, damages, penalties, fines, forfeitures,
legal fees and related costs, judgments, and other costs and expenses resulting
from any claim, demand, defense or assertion based on or grounded upon, or
resulting from, a breach of the Depositor’s representations and warranties
contained in Sections 2.03(a)(i) through (vi) hereof. It is understood and
agreed that the enforcement of the obligation of the Depositor set forth in
this
Section to indemnify the Master Servicer as provided in this Section constitutes
the sole remedy hereunder of the Master Servicer respecting a breach by the
Depositor of the representations and warranties in Sections 2.03(a)(i) through
(vi) hereof.
Any
cause
of action against the Depositor relating to or arising out of the breach of
the
representations and warranties made in Sections 2.03(a)(i) through (vi) hereof
shall accrue upon discovery of such breach by either the Depositor or the Master
Servicer or notice thereof by any one of such parties to the other
parties.
Section
9.15. Opinion.
On
or
before the Closing Date, the Master Servicer shall cause to be delivered to
the
Depositor, the Seller, the Certificate Insurer and the Trustee one or more
Opinions of Counsel, dated the Closing Date, in form and substance reasonably
satisfactory to the Depositor and Xxxxxx Brothers Inc., as to the due
authorization, execution and delivery of this Agreement by the Master Servicer
and the enforceability thereof.
Section
9.16. Standard
Hazard and Flood Insurance Policies.
For
each
Mortgage Loan (other than a Cooperative Loan), the Master Servicer shall
maintain, or cause to be maintained by each Servicer, standard fire and casualty
insurance and, where applicable, flood insurance, all in accordance with the
provisions of this Agreement and the Servicing Agreement, as applicable. It
is
understood and agreed that such insurance shall be with insurers meeting the
eligibility requirements set forth in the applicable Servicing Agreement and
that no earthquake or other additional insurance is to be required of any
Mortgagor or to be maintained on property acquired in respect of a defaulted
loan, other than pursuant to such applicable laws and regulations as shall
at
any time be in force and as shall require such additional
insurance.
Pursuant
to Section 4.01, any amounts collected by the Master Servicer, or by any
Servicer, under any insurance policies maintained pursuant to this Section
9.16
or the applicable Servicing Agreement (other than amounts to be applied to
the
restoration or repair of the property subject to the related Mortgage or
released to the Mortgagor in accordance with such Servicing Agreement) shall
be
deposited into the Collection Account, subject to withdrawal pursuant to Section
4.02. Any cost incurred by the Master Servicer or any Servicer in maintaining
any such insurance if the Mortgagor defaults in its obligation to do so shall
be
added to the amount owing under the Mortgage Loan where the terms of the
Mortgage Loan so permit; provided, however, that the addition of any such cost
shall not be taken into account for purposes of calculating the distributions
to
be made to Certificateholders and shall be recoverable by the Master Servicer
or
such Servicer pursuant to Section 4.02.
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Section
9.17. Presentment
of Claims and Collection of Proceeds.
The
Master Servicer shall cause each Servicer (to the extent provided in the
applicable Servicing Agreement) to, prepare and present on behalf of the Trustee
and the Certificateholders all claims under the Insurance Policies with respect
to the Mortgage Loans, and take such actions (including the negotiation,
settlement, compromise or enforcement of the insured’s claim) as shall be
necessary to realize recovery under such policies. Any proceeds disbursed to
the
Master Servicer (or disbursed to the Servicer and remitted to the Master
Servicer) in respect of such policies or bonds shall be promptly deposited
in
the Collection Account or any Custodial Account upon receipt, except that any
amounts realized that are to be applied to the repair or restoration of the
related Mortgaged Property or released to the related Mortgagor in accordance
with the Master Servicer’s or the applicable Servicer’s normal servicing
procedures need not be so deposited (or remitted).
Section
9.18. Maintenance
of the Primary Mortgage Insurance Policies.
(a) The
Master Servicer shall not take, or knowingly permit any Servicer (consistent
with the applicable Servicing Agreement) to take, any action that would result
in noncoverage under any applicable Primary Mortgage Insurance Policy of any
loss which, but for the actions of such Master Servicer or such Servicer, would
have been covered thereunder. To the extent that coverage is available, the
Master Servicer shall use its best reasonable efforts to keep in force and
effect, or to cause each Servicer to keep in force and effect (to the extent
that the Mortgage Loan requires the Mortgagor to maintain such insurance),
primary mortgage insurance applicable to each Mortgage Loan in accordance with
the provisions of this Agreement and the applicable Servicing Agreement, as
applicable. The Master Servicer shall not, and shall not knowingly permit any
Servicer to, cancel or refuse to renew any such Primary Mortgage 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 except in accordance with the
provisions of this Agreement and the applicable Servicing Agreement, as
applicable.
(b) The
Master Servicer agrees, to the extent provided in the related Servicing
Agreement, to cause each Servicer to present, on behalf of the Trustee and
the
Certificateholders, claims to the insurer under any Primary Mortgage Insurance
Policies and, in this regard, to take such reasonable action as shall be
necessary to permit recovery under any Primary Mortgage Insurance Policies
respecting defaulted Mortgage Loans. Pursuant to Section 4.01, any amounts
collected by the Master Servicer or any Servicer under any Primary Mortgage
Insurance Policies shall be deposited in the Collection Account, subject to
withdrawal pursuant to Section 4.02.
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Section
9.19. Trustee
To Retain Possession of Certain Insurance Policies and Documents.
The
Trustee (or the Custodian) shall retain possession and custody of the originals
of the Primary Mortgage Insurance Policies or certificate of insurance if
applicable and any certificates of renewal as to the foregoing as may be issued
from time to time as contemplated by this Agreement. Until all amounts
distributable in respect of the Certificates have been distributed in full
and
the Master Servicer otherwise has fulfilled its obligations under this
Agreement, the Trustee (or the Custodian) shall also retain possession and
custody of each Mortgage File in accordance with and subject to the terms and
conditions of this Agreement. The Master Servicer shall promptly deliver or
cause the applicable Servicer to deliver to the Trustee (or the Custodian),
upon
the execution or receipt thereof the originals of the Primary Mortgage Insurance
Policies and any certificates of renewal thereof, and such other documents
or
instruments that constitute portions of the Mortgage File that come into the
possession of the Master Servicer or a Servicer from time to time.
Section
9.20. Realization
Upon Defaulted Mortgage Loans.
(a) The
Master Servicer shall use its reasonable best efforts to, or to cause the
applicable Servicer to, foreclose upon, repossess or otherwise comparably
convert the ownership of Mortgaged Properties securing such of the Mortgage
Loans as come into and continue in default and as to which no satisfactory
arrangements can be made for collection of delinquent payments, all in
accordance with the applicable Servicing Agreement. Alternatively, the Master
Servicer may take, or authorize the applicable Servicer to take, other actions
in respect of a defaulted Mortgage Loan, which may include (i) accepting a
short
sale (a payoff of the Mortgage Loan for an amount less than the total amount
contractually owed in order to facilitate a sale of the Mortgaged Property
by
the Mortgagor) or permitting a short refinancing (a payoff of the Mortgage
Loan
for an amount less than the total amount contractually owed in order to
facilitate refinancing transactions by the Mortgagor not involving a sale of
the
Mortgaged Property), (ii) arranging for a repayment plan or (iii) agreeing
to a
modification in accordance with Section 9.04. In connection with such
foreclosure or other conversion or action, the Master Servicer shall, consistent
with Section 9.18, follow such practices and procedures as it shall reasonably
determine to be in the best interests of the Trust Fund and the
Certificateholders and which shall be consistent with its customary practices
in
performing its general mortgage servicing activities; provided that the Master
Servicer shall not be liable in any respect hereunder if the Master Servicer
is
acting in connection with any such foreclosure or other conversion or action
in
a manner that is consistent with the provisions of this Agreement. Neither
the
Master Servicer, nor any Servicer, shall be required to expend its own funds
or
incur other reimbursable charges in connection with any foreclosure, or
attempted foreclosure which is not completed, or toward the correction of any
default on a related senior mortgage loan, or towards the restoration of any
property unless it shall determine (i) that such restoration and/or foreclosure
will increase the proceeds of liquidation of the Mortgage Loan to the
Certificateholders after reimbursement to itself for such expenses or charges
and (ii) that such expenses and charges will be recoverable to it through
Liquidation Proceeds or Insurance Proceeds (as provided in Section
4.02).
(b) Notwithstanding
the foregoing provisions of this Section 9.20 or any other provision of this
Agreement, with respect to any Mortgage Loan as to which the Master Servicer
has
received actual notice of, or has actual knowledge of, the presence of any
toxic
or hazardous substance on the related Mortgaged Property, the Master Servicer
shall not, on behalf of the Trustee, either (i) obtain title to such Mortgaged
Property as a result of or in lieu of foreclosure or otherwise, or (ii)
otherwise acquire possession of, or take any other action with respect to,
such
Mortgaged Property, if, as a result of any such action, the Trustee, the Trust
Fund or the Certificateholders would be considered to hold title to, to be
a
“mortgagee-in-possession” of, or to be an “owner” or “operator” of such
Mortgaged Property within the meaning of the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended from time to time,
or any comparable law, unless the Master Servicer has obtained the prior written
consent of the NIMS Insurer.
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Section
9.21. Compensation
to the Master Servicer.
The
Master Servicer shall be entitled to withdraw from the Collection Account,
subject to Section 5.05, the Master Servicing Fee and the General Servicing
Fee
to the extent permitted by Section 4.02. Servicing compensation in the form
of
assumption fees, if any, late payment charges, as collected, if any, or
otherwise (but not including any Prepayment Premium) shall be retained by the
Master Servicer (or the applicable Servicer) and shall not be deposited in
the
Collection Account. If the Master Servicer does not retain or withdraw the
Master Servicing Fee or the General Servicing Fee from the Collection Account
as
provided herein, the Master Servicer shall be entitled to direct the Trustee
to
pay the Master Servicing Fee and the General Servicing Fee to such Master
Servicer by withdrawal from the Certificate Account to the extent that payments
have been received with respect to the applicable Mortgage Loan. The Master
Servicer shall be required to pay all expenses incurred by it in connection
with
its activities hereunder and shall not be entitled to reimbursement therefor
except as provided in this Agreement. Pursuant to Section 4.01(e), all income
and gain realized from any investment of funds in the Collection Account shall
be for the benefit of the Master Servicer as compensation. The provisions of
this Section 9.21 are subject to the provisions of Section 6.14.
Section
9.22. REO
Property.
(a) In
the
event the Trust Fund acquires ownership of any REO Property in respect of any
Mortgage Loan, the deed or certificate of sale shall be issued to the Trustee,
or to its nominee, on behalf of the Certificateholders. The Master Servicer
shall use its reasonable best efforts to sell, or cause the applicable Servicer,
to the extent provided in the related Servicing Agreement, to sell any REO
Property as expeditiously as possible and in accordance with the provisions
of
this Agreement and such Servicing Agreement, as applicable, but in all events
within the time period, and subject to the conditions set forth in Article
X
hereof. Pursuant to its efforts to sell such REO Property, the Master Servicer
shall protect and conserve, or cause the applicable Servicer to protect and
conserve, such REO Property in the manner and to such extent required by the
related Servicing Agreement, subject to Article X hereof.
(b) The
Master Servicer shall deposit or cause to be deposited all funds collected
and
received by it, or recovered from the Servicer, in connection with the operation
of any REO Property in the Collection Account.
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(c) The
Master Servicer and the applicable Servicer, upon the final disposition of
any
REO Property, shall be entitled to reimbursement for any related unreimbursed
Advances and other unreimbursed advances as well as any unpaid Master Servicing
Fees or General Servicing Fees from Liquidation Proceeds received in connection
with the final disposition of such REO Property; provided, that (without
limitation of any other right of reimbursement that the Master Servicer or
any
Servicer shall have hereunder) any such unreimbursed Advances as well as any
unpaid Master Servicing Fees, Servicing Fees or General Servicing Fees may
be
reimbursed or paid, as the case may be, prior to final disposition, out of
any
net rental income or other net amounts derived from such REO
Property.
(d) The
Liquidation Proceeds from the final disposition of the REO Property, net of
any
payment to the Master Servicer and the applicable Servicer as provided above,
shall be deposited in the Collection Account on or prior to the Determination
Date in the month following receipt thereof (and the Master Servicer shall
provide written notice to the Trustee upon such deposit) and be remitted by
wire
transfer in immediately available funds to the Trustee for deposit into the
Certificate Account on the next succeeding Deposit Date.
Section
9.23. Notice
to the Sponsor, the Depositor and the Trustee.
(a) The
Master Servicer shall promptly notify the Trustee, the Sponsor and the Depositor
(i) of any legal proceedings pending against the Master Servicer of the type
described in Item 1117 (§ 229.1117) of Regulation AB.
(b) On
or
before March 1st of each year, the Depositor shall distribute the information
in
Exhibit S to the Master Servicer. If the Master Servicer shall become at any
time an affiliate of any of the parties listed on Exhibit S hereto or any of
their affiliates who have been identified to the Master Servicer in writing,
the
Master Servicer shall notify the Trustee, the Sponsor and the Depositor of
such
affiliation by March 15 of each year (but only to the extent that the Master
Servicer has not previously notified the Trustee, the Sponsor or the Depositor
of such affiliation.)
(c) Not
later
than four Business Days prior to the Distribution Date of each month, the Master
Servicer shall provide to the Trustee, the Sponsor and the Depositor notice
of
the occurrence of any material modifications, extensions or waivers of terms,
fees, penalties or payments relating to the Mortgage Loans during the related
Collection Period or that have cumulatively become material over time (Item
1121(a)(11) of Regulation AB) along with all information, data, and materials
related thereto as may be required to be included in the related Distribution
Report on Form 10-D, in each case solely as reported to the Master Servicer
by
the applicable Servicer. The parties to this Agreement acknowledge that the
performance by the Master Servicer of its duties under this Section 9.23(c)
related to the timely preparation and delivery of such information is contingent
upon each applicable Servicer strictly observing all requirements and deadlines
in the performance of their duties under their related Servicing Agreements.
The
Master Servicer shall have no liability for any loss, expense, damage or claim
arising out of or with respect to any failure to properly prepare and/or timely
deliver all such information where such failure results from the Master
Servicer’s inability or failure to obtain or receive, on a timely basis, any
information from any Servicer needed to prepare or deliver such information,
which failure does not result from the Master Servicer’s own negligence, bad
faith or willful misconduct.
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Section
9.24. Reports
to the Trustee.
(a) Not
later
than 30 days after each Distribution Date, the Master Servicer shall, upon
request, forward to the Trustee and any NIMS Insurer a statement, deemed to
have
been certified by a Servicing Officer, setting forth the status of the
Collection Account maintained by the Master Servicer as of the close of business
on the related Distribution Date, indicating that all distributions required
by
this Agreement to be made by the Master Servicer have been made (or if any
required distribution has not been made by the Master Servicer, specifying
the
nature and status thereof) and showing, for the period covered by such
statement, the aggregate of deposits into and withdrawals from the Collection
Account maintained by the Master Servicer. Copies of such statement shall be
provided by the Master Servicer, upon request, to the Depositor, Attention:
Contract Finance, to the Certificate Insurer and to any Certificateholders
(or
by the Trustee at the Master Servicer’s expense if the Master Servicer shall
fail to provide such copies to the Certificateholders (unless (i) the Master
Servicer shall have failed to provide the Trustee with such statement or (ii)
the Trustee shall be unaware of the Master Servicer’s failure to provide such
statement)).
(b) Not
later
than two Business Days following each Distribution Date, the Master Servicer
shall deliver to one Person designated by the Depositor, in a format consistent
with other electronic loan level reporting supplied by the Master Servicer
in
connection with similar transactions, “loan level” information with respect to
the Mortgage Loans as of the related Determination Date, to the extent that
such
information has been provided to the Master Servicer by the Servicers or by
the
Depositor.
(c) All
information, reports and statements prepared by the Master Servicer under this
Agreement shall be based upon information supplied to the Master Servicer by
the
Servicers without independent verification thereof and the Master Servicer
shall
be entitled to rely on such information.
Section
9.25. Assessment
of Compliance and Attestation Reports.
(a) Assessment
of Compliance
(i) On
or
before March 15th of each calendar year in which the Depositor is required
to
file reports with respect to the Trust Fund in accordance with the Exchange
Act
and the rules and regulations of the Commission, beginning with March 15, 2008,
the Master Servicer, the Paying Agent (if other than the Trustee) and the
Trustee, each at its own expense, shall furnish, and each such party shall
cause
any Servicing Function Participant engaged by it to furnish, each at its own
expense, to the Sponsor, the Depositor, the Master Servicer, the Certificate
Insurer and the Trustee, a report on an assessment of compliance with the
Relevant Servicing Criteria that contains (A) a statement by such party of
its
responsibility for assessing compliance with the Relevant Servicing Criteria,
(B) a statement that such party used the Servicing Criteria to assess compliance
with the Relevant Servicing Criteria, (C) such party’s assessment of compliance
with the Relevant Servicing Criteria as of and for the fiscal year covered
by
the Form 10-K required to be filed pursuant to Section 6.20(d), including,
if
there has been any material instance of noncompliance with the Relevant
Servicing Criteria, a discussion of each such failure and the nature and status
thereof, and (D) a statement that a registered public accounting firm has issued
an attestation report on such party’s assessment of compliance with the Relevant
Servicing Criteria as of and for such period. If the Trustee and the Paying
Agent are the same party, the Relevant Servicing Criteria of the Paying Agent
shall be included in the Trustee’s report. The Master Servicer shall furnish to
the Trustee a copy of each assessment of compliance provided to it by the
Custodian pursuant to the Custodial Agreement and by each Servicer pursuant
to
the related Servicing Agreement, to the extent that the Trustee is not entitled
to receive such assessments pursuant to each such applicable
agreement.
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(ii) When
the
Master Servicer, the Paying Agent (if other than the Trustee) and the Trustee
(or any Servicing Function Participant engaged by it) submit their assessments
to the Trustee and the Master Servicer, such parties will also at such time
include the assessment (and attestation pursuant to subsection (b) of this
Section 9.25) of each Servicing Function Participant engaged by it and shall
indicate to the Trustee what Relevant Servicing Criteria will be addressed
in
any such reports prepared by any such Servicing Function
Participant.
(iii) Promptly
after receipt of each report on assessment of compliance, the Trustee shall
confirm that the assessments, taken as a whole, address all applicable Servicing
Criteria and taken individually address the Relevant Servicing Criteria (and
disclose the inapplicability of the Servicing Criteria not determined to be
Relevant Servicing Criteria) for each party as set forth on Exhibit R and on
any
similar exhibit set forth in the applicable Servicing Agreement in respect
of
any Servicer, and the Custodial Agreement in respect of the Custodian, and
shall
notify the Depositor of any exceptions. By way of clarification and for the
avoidance of doubt, it is acknowledged that the Trustee shall rely exclusively
on Exhibit R to determine such applicable Servicing Criteria and Relevant
Servicing Criteria, as the case may be, and shall not otherwise be reporting
on
the content of or sufficiency of such assessments.
(b) Attestation
Reports
(i) On
or
before March 15th of each calendar year in which the Depositor is required
to
file reports with respect to the Trust Fund in accordance with the Exchange
Act
and the rules and regulations of the Commission, beginning with March 15, 2008,
the Master Servicer, the Paying Agent (if other than the Trustee) and the
Trustee shall, at its own expense, cause a firm of independent public
accountants (who may also render other services to the Master Servicer, Paying
Agent or Trustee), which is a member of the American Institute of Certified
Public Accountants, to furnish to the Sponsor, the Master Servicer, the
Certificate Insurer, the Trustee and the Depositor a report to the effect that
such firm attests to, and reports on, the assessment made by such asserting
party pursuant to Section 6.01(l) above, which report shall be made in
accordance with standards for attestation engagements issued or adopted by
the
PCAOB. In addition, on or before March 15th of each calendar year in which
the
Depositor is required to file reports with respect to the Trust Fund in
accordance with the Exchange Act and the rules and regulations of the
Commission, beginning with March 15, 2008, the Master Servicer, the Paying
Agent
(if other than the Trustee) and the Trustee shall cause any Subservicer or
Subcontractor with respect to the Trustee to furnish to the Sponsor and the
Depositor an assessment of compliance and attestation report. If the Trustee
and
the Paying Agent are the same party, the attestation report caused to be
furnished by the Trustee shall also address the Relevant Servicing Criteria
of
the Paying Agent.
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(ii) Promptly
after receipt of such report from the Master Servicer, the Paying Agent, the
Trustee or any Servicing Function Participant engaged by such parties, the
Trustee shall confirm that each assessment submitted pursuant subsection (a)
of
this Section 9.25 is coupled with an attestation meeting the requirements of
this Section and notify the Depositor of any exceptions.
(c) The
Trustee’s, the Paying Agent’s and the Master Servicer’s obligation to provide
assessments of compliance and attestations under this Section 9.25 shall
terminate upon the filing of a Form 15 suspension notice on behalf of the Trust
Fund. After the occurrence of such event, and provided the Depositor is not
otherwise provided with such reports or copies of such reports, the Trustee,
the
Paying Agent and the Master Servicer shall be obligated to provide a copy of
such reports, by March 15 of each year, to the Depositor.
Section
9.26. Annual
Statement of Compliance with Applicable Servicing Criteria.
The
Master Servicer shall deliver (and the Master Servicer shall cause any
Additional Servicer engaged by it to deliver) to the Sponsor, the Depositor,
the
Certificate Insurer and the Trustee on or before March 15 of each year,
commencing in March 2008, an Officer’s Certificate stating, as to the signer
thereof, that (A) a review of such party’s activities during the preceding
calendar year or portion thereof and of such party’s performance under this
Agreement, or such other applicable agreement in the case of an Additional
Servicer, has been made under such officer’s supervision and (B) to the best of
such officer’s knowledge, based on such review, such party has fulfilled all its
obligations under this Agreement, or such other applicable agreement in the
case
of an Additional Servicer, in all material respects throughout such year or
portion thereof, or, if there has been a failure to fulfill any such obligation
in any material respect, specifying each such failure known to such officer
and
the nature and status thereof.
Section
9.27. Merger
or Consolidation.
Any
Person into which the Master Servicer may be merged or consolidated, or any
Person resulting from any merger, conversion, other change in form or
consolidation to which the Master Servicer shall be a party, or any Person
succeeding to the business of the Master Servicer, shall be the successor to
the
Master Servicer 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; provided, however, that the successor or resulting
Person to the Master Servicer shall be a Person that shall be qualified and
approved to service mortgage loans for Xxxxxx Xxx or Xxxxxxx Mac and shall
have
a net worth of not less than $15,000,000. Notwithstanding the foregoing, as
a
condition to the succession to the Master Servicer under this Agreement by
any
Person (i) into which the Master Servicer may be merged or consolidated, or
(ii)
which may be appointed as a successor to the Master Servicer, the Master
Servicer shall notify the Depositor, at least 15 calendar days prior to the
effective date of such succession or appointment, of such succession or
appointment and shall furnish to the Depositor in writing and in form and
substance reasonably satisfactory to the Depositor, all information reasonably
necessary for the Trustee to accurately and timely report, pursuant to Section
6.20, the event under Item 6.02 of Form 8-K pursuant to the Exchange Act (if
such reports under the Exchange Act are required to be filed under the Exchange
Act).
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Section
9.28. Resignation
of Master Servicer.
Except
as
otherwise provided in Sections 9.27 and 9.29 hereof, the Master Servicer shall
not resign from the obligations and duties hereby imposed on it unless it or
the
Trustee determines that the Master Servicer’s duties hereunder are no longer
permissible under applicable law or are in material conflict by reason of
applicable law with any other activities carried on by it and cannot be cured.
Any such determination permitting the resignation of the Master Servicer shall
be evidenced by an Opinion of Counsel that shall be Independent to such effect
delivered to the Trustee and the NIMS Insurer. No such resignation shall become
effective until a period of time not to exceed 90 days after the Trustee and
the
NIMS Insurer receives written notice thereof from the Master Servicer and until
the Trustee shall have assumed, or a successor master servicer shall have been
appointed by the Trustee, such successor master servicer being acceptable to
the
NIMS Insurer, and until such successor shall have assumed, the Master Servicer’s
responsibilities and obligations under this Agreement. Notice of such
resignation shall be given promptly by the Master Servicer and the Depositor
to
the Trustee.
Section
9.29. Assignment
or Delegation of Duties by the Master Servicer.
Except
as
expressly provided herein, the Master Servicer shall not assign or transfer
any
of its rights, benefits or privileges hereunder to any other Person, or delegate
to or subcontract with, or authorize or appoint any other Person to perform
any
of the duties, covenants or obligations to be performed by the Master Servicer
hereunder; provided, however, that the Master Servicer shall have the right
without the prior written consent of the Trustee or the Depositor to delegate
or
assign to or subcontract with or authorize or appoint an Affiliate of the Master
Servicer to perform and carry out any duties, covenants or obligations to be
performed and carried out by the Master Servicer hereunder. In no case, however,
shall any such delegation, subcontracting or assignment to an Affiliate of
the
Master Servicer relieve the Master Servicer of any liability hereunder. Notice
of such permitted assignment shall be given promptly by the Master Servicer
to
the Depositor and the Trustee. If, pursuant to any provision hereof, the duties
of the Master Servicer are transferred to a successor master servicer, the
entire amount of the Master Servicing Fees, the General Servicing Fees (except
with respect to the Servicing Fee for GMACM, GreenPoint and SunTrust) and other
compensation payable to the Master Servicer pursuant hereto, including amounts
payable to or permitted to be retained or withdrawn by the Master Servicer
pursuant to Section 9.21 hereof, shall thereafter be payable to such successor
master servicer.
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Notwithstanding
the foregoing, for so long as reports are required to be filed with the
Commission under the Exchange Act with respect to the Trust, the Master Servicer
shall not utilize any Subcontractor for the performance of its duties hereunder
if such Subcontractor would be “participating in the servicing function” within
the meaning of Item 1122 of Regulation AB without (a) giving notice to the
Trustee and the Depositor and (b) requiring any such Subcontractor to provide
to
the Master Servicer an attestation report as provided for in Section 9.25(b)
and
an assessment of compliance as provided in Section 9.25(a), which reports the
Master Servicer shall include in its attestation report and assessment of
compliance.
Section
9.30. Limitation
on Liability of the Master Servicer and Others.
(a) The
Master Servicer undertakes to perform such duties and only such duties as are
specifically set forth in this Agreement.
(b) No
provision of this Agreement shall be construed to relieve the Master Servicer
from liability for its own negligent action, its own negligent failure to act
or
its own willful misconduct; provided, however, that the duties and obligations
of the Master Servicer shall be determined solely by the express provisions
of
this Agreement, the Master Servicer shall not be liable except for the
performance of such duties and obligations as are specifically set forth in
this
Agreement; no implied covenants or obligations shall be read into this Agreement
against the Master Servicer and, in absence of bad faith on the part of the
Master Servicer, the Master Servicer 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 Master Servicer and conforming to
the
requirements of this Agreement.
(c) None
of
the Master Servicer, the Seller, any NIMS Insurer or the Depositor or any of
the
directors, officers, employees or agents of any of them shall be under any
liability to the Trustee or the Certificateholders for any action taken or
for
refraining from the taking of any action in good faith pursuant to this
Agreement, or for errors in judgment; provided, however, that this provision
shall not protect the Master Servicer, the Seller, any NIMS Insurer or the
Depositor or any such person against any liability that would otherwise be
imposed by reason of willful misfeasance, bad faith or negligence in its
performance of its duties or by reason of reckless disregard for its obligations
and duties under this Agreement. The Master Servicer, the Seller, any NIMS
Insurer and the Depositor and any director, officer, employee or agent of any
of
them shall be entitled to indemnification by the Trust Fund and will be held
harmless against any loss, liability or expense incurred in connection with
any
legal action relating to this Agreement or the Certificates other than any
loss,
liability or expense incurred by reason of willful misfeasance, bad faith or
negligence in the performance of his or its duties hereunder or by reason of
reckless disregard of his or its obligations and duties hereunder. The Master
Servicer, the Seller, any NIMS Insurer and the Depositor and any director,
officer, employee or agent of any of them 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 Master Servicer shall be under no obligation
to appear in, prosecute or defend any legal action that is not incidental to
its
duties to master service the Mortgage Loans in accordance with this Agreement
and that in its opinion may involve it in any expenses or liability; provided,
however, that the Master Servicer may in its sole discretion undertake any
such
action that it may deem necessary or desirable in respect to this Agreement
and
the rights and duties of the parties hereto and the interests of the
Certificateholders hereunder. In such event, the legal expenses and costs of
such action and any liability resulting therefrom shall be expenses, costs and
liabilities of the Trust Fund and the Master Servicer shall be entitled to
be
reimbursed therefor out of the Collection Account it maintains as provided
by
Section 4.02.
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Section
9.31. Indemnification;
Third Party Claims.
The
Master Servicer agrees to indemnify the Depositor, the Sponsor, the Certificate
Registrar, the Paying Agent, the Certificate Insurer and the Trustee (and each
of their respective directors, officers, employees and agents) and hold each
of
them harmless against any and all claims, losses, penalties, fines, forfeitures,
reasonable legal fees and related costs, judgments, and any other costs,
liability, fees and expenses that the Depositor, the Sponsor, the Certificate
Insurer, the Certificate Registrar, the Paying Agent or the Trustee may sustain
arising out of or based upon (a) any material breach by the Master Servicer
of
any of its obligations hereunder, including particularly its obligations to
provide any report under Section 9.25(a), Section 9.25(b) or Section 9.26 or
any
information, data or materials required to be included in any Exchange Act
report, provided, however, that in no event shall the Master Servicer be liable
for any special, consequential, indirect or punitive damages pursuant to this
Section 9.31, even if advised of the possibility of such damages, (b) any
material misstatement or omission on any information, data, or materials
provided by the Master Servicer, or (c) the negligence, bad faith or willful
misconduct of the Master Servicer in connection with its performance hereunder.
The Depositor, the Sponsor, the Certificate Insurer, the Certificate Registrar,
the Paying Agent and the Trustee shall immediately notify the Master Servicer
if
a claim is made by a third party with respect to this Agreement or the Mortgage
Loans entitling the Depositor, the Sponsor, the Certificate Insurer or the
Trustee to indemnification hereunder, whereupon the Master Servicer shall assume
the defense of any such claim and pay all expenses in connection therewith,
including counsel fees, and promptly pay, discharge and satisfy any judgment
or
decree which may be entered against it or them in respect of such claim. This
indemnification shall survive the termination of this Agreement or the
termination of the Master Servicer as a party to this Agreement.
Section
9.32. Special
Servicing of Delinquent Mortgage Loans.
If
permitted under the terms of any Servicing Agreement, the Seller may appoint,
pursuant to the terms of such Servicing Agreement and with the written consent
of the Depositor, the Master Servicer, the Trustee and the NIMS Insurer, a
Special Servicer to special service any Distressed Mortgage Loans. Any
applicable Termination Fee related to the termination of the Servicer and the
appointment of any Special Servicer shall be paid by the Seller. Any fees paid
to any such Special Servicer shall not exceed the applicable Servicing Fee
Rate
(or, with respect to the Mortgage Loans serviced by GreenPoint, on a monthly
basis, the Servicing Fee).
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Section
9.33. Allocation
to Related Mortgage Pool.
Payments
described in this Article IX made from the Trust Fund shall be allocated and
limited to collections or other recoveries on the related Mortgage Pool or
Mortgage Pools and shall be accounted for in such manner.
ARTICLE
X.
REMIC
ADMINISTRATION
Section
10.01. REMIC
Administration.
(a) REMIC
elections as set forth in the Preliminary Statement and this Section 10.01
shall
be made on Forms 1066 or other appropriate federal tax or information return
for
the taxable year ending on the last day of the calendar year in which the
Certificates are issued. The regular interests and residual interest in each
REMIC shall be as designated in the Preliminary Statement and this Section
10.01. For purposes of such designations, the interest rate of any regular
interest that is computed by taking into account the weighted average of the
Net
Mortgage Rates of the Mortgage Loans shall be reduced to take into account
any
expense paid by the Trust to the extent that (i) such expense was not taken
into
account in computing the Net Mortgage Rate of any Mortgage Loan or any Net
Funds
Cap, (ii) such expense does not constitute an “unanticipated expense” of a REMIC
within the meaning of Treasury Regulation Section 1.860G-1(b)(3)(ii) and (iii)
the amount of such expense was not taken into account in computing the interest
rate of a more junior Class of regular interests.
(b) The
Closing Date is hereby designated as the “Startup Day” of each REMIC within the
meaning of section 860G(a)(9) of the Code. The latest possible maturity date
for
purposes of Treasury Regulation 1.860G-1(a)(4) will be the Latest Possible
Maturity Date.
(c) The
Trustee shall represent the Trust Fund in any administrative or judicial
proceeding relating to an examination or audit by any governmental taxing
authority with respect thereto. The Trustee shall pay any and all tax related
expenses (not including taxes) of each REMIC and Grantor Trust, including but
not limited to any professional fees or expenses related to audits or any
administrative or judicial proceedings with respect to such REMIC or Grantor
Trust that involve the Internal Revenue Service or state tax authorities, but
only to the extent that (i) such expenses are ordinary or routine expenses,
including expenses of a routine audit but not expenses of litigation (except
as
described in (ii)); or (ii) such expenses or liabilities (including taxes and
penalties) are attributable to the negligence or willful misconduct of the
Trustee in fulfilling its duties hereunder (including its duties as tax return
preparer). The Trustee shall be entitled to reimbursement from the Certificate
Account of the expenses to the extent (x) provided in clause (i) above and
(y)
with respect to each REMIC, such expenses are “unanticipated expenses” within
the meaning of Treasury Regulation Section 1.860G-1(b)(3)(ii). Any reimbursement
described in the preceding sentence shall be allocated and limited to
collections or other recoveries on the related Mortgage Pool and shall be
accounted for in such manner.
(d) The
Trustee shall prepare, the Trustee shall sign, and the Trustee will file, all
of
each REMIC’s federal and state tax and information returns as such REMIC’s
direct representative. The Trustee shall prepare, sign and file all of the
tax
or information returns in respect of each Grantor Trust. The Trustee shall
comply with such requirement by filing Form 1041. The expenses of preparing
and
filing such returns shall be borne by the Trustee.
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(e) The
Trustee or its designee shall perform on behalf of the Trust Fund and each
REMIC
and Grantor Trust all reporting and other tax compliance duties that are the
responsibility of the Trust Fund or such REMIC or Grantor Trust under the Code,
the REMIC Provisions, or other compliance guidance issued by the Internal
Revenue Service or any state or local taxing authority. Among its other duties,
if required by the Code, the REMIC Provisions, or other such guidance, the
Trustee shall provide (i) to the Treasury or other governmental authority such
information as is necessary for the application of any tax relating to the
transfer of a Residual Certificate to any disqualified person or organization
pursuant to Treasury Regulation 1.860E-2(a)(5) and any person designated in
Section 860E(e)(3) of the Code and (ii) to the Certificateholders such
information or reports as are required by the Code or REMIC
Provisions.
(f) The
Trustee, the Master Servicer and the Holders of Certificates shall take any
action, within their respective control and scope of their duties, or cause
any
REMIC to take any action necessary to create or maintain the status of any
REMIC
as a REMIC under the REMIC Provisions and shall assist each other as necessary
to create or maintain such status. Neither the Trustee, the Master Servicer
nor
the Holder of any Residual Certificate shall knowingly take any action, cause
any REMIC to take any action or fail to take (or fail to cause to be taken)
any
action, within their respective control and scope of their duties, that, under
the REMIC Provisions, if taken or not taken, as the case may be, could result
in
an Adverse REMIC Event unless the Trustee, the NIMS Insurer and the Master
Servicer have received an Opinion of Counsel (at the expense of the party
seeking to take such action) to the effect that the contemplated action will
not
result in an Adverse REMIC Event. In addition, prior to taking any action with
respect to any REMIC or the assets therein, or causing any REMIC to take any
action, which is not expressly permitted under the terms of this Agreement,
any
Holder of a Residual Certificate will consult with the Trustee, the NIMS
Insurer, the Master Servicer or their respective designees, in writing, with
respect to whether such action could cause an Adverse REMIC Event to occur
with
respect to any REMIC, and no such Person shall take any such action or cause
any
REMIC to take any such action as to which the Trustee, the NIMS Insurer or
the
Master Servicer has advised it in writing that an Adverse REMIC Event could
occur.
(g) Each
Holder of a Residual Certificate shall pay when due any and all taxes imposed
on
the related REMIC by federal or state governmental authorities. To the extent
that such taxes are not paid by a Residual Certificateholder, the Trustee shall
pay any remaining REMIC taxes out of current or future amounts otherwise
distributable to the Holder of the Residual Certificate in any such REMIC or,
if
no such amounts are available, out of other amounts held in the Collection
Account, and shall reduce amounts otherwise payable to holders of regular
interests in any such REMIC, as the case may be.
(h) The
Trustee shall, for federal income tax purposes, maintain books and records
with
respect to each REMIC on a calendar year and on an accrual basis.
(i) No
additional contributions of assets shall be made to any REMIC, except as
expressly provided in this Agreement with respect to Qualifying Substitute
Mortgage Loans.
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(j) Neither
the Trustee nor the Master Servicer shall enter into any arrangement by which
any REMIC will receive a fee or other compensation for services.
(k) Upon
the
request of any Rating Agency or any NIMS Insurer, the Trustee shall deliver
an
Officer’s Certificate to the Rating Agency and to the NIMS Insurer stating,
without regard to any actions taken by any party other than the Trustee, the
Trustee’s compliance with provisions of this Section 10.01.
(l) The
Class
AP-I Certificates shall be neither regular interests nor residual interests
in
any REMIC created hereunder. It is the intention of the parties hereto that
the
segregated pool of assets consisting of any collections of Prepayment Premiums
that are distributable to the Class AP-I Certificates and the related Class
P
Reserve Fund shall constitute a grantor trust for federal income tax purposes.
The Trustee, by its execution and delivery hereof, acknowledges the assignment
to it of the rights to receive such Prepayment Premiums and such Class P Reserve
Fund and declares that it holds and will hold such assets in trust for the
exclusive use and benefit of all present and future Holders of the Class AP-I
Certificates. The rights of Holders of the Class AP-I Certificates to receive
distributions from the proceeds of such Prepayment Premiums and such Class
P
Reserve Fund, and all ownership interests of such Holders in and to such
distributions, shall be as set forth in this Agreement.
The
Class
3-AP Certificates shall be neither regular interests nor residual interests
in
any REMIC created hereunder. It is the intention of the parties hereto that
the
segregated pool of assets consisting of any collections of Prepayment Premiums
that are distributable to the Class 3-AP Certificates and the related Class
P
Reserve Fund shall constitute a grantor trust for federal income tax purposes.
The Trustee, by its execution and delivery hereof, acknowledges the assignment
to it of the rights to receive such Prepayment Premiums and such Class P Reserve
Fund and declares that it holds and will hold such assets in trust for the
exclusive use and benefit of all present and future Holders of the Class 3-AP
Certificates. The rights of Holders of the Class 3-AP Certificates to receive
distributions from the proceeds of such Prepayment Premiums and such Class
P
Reserve Fund, and all ownership interests of such Holders in and to such
distributions, shall be as set forth in this Agreement.
The
Class
4-AP Certificates shall be neither regular interests nor residual interests
in
any REMIC created hereunder. It is the intention of the parties hereto that
the
segregated pool of assets consisting of any collections of Prepayment Premiums
that are distributable to the Class 4-AP Certificates and the related Class
P
Reserve Fund shall constitute a grantor trust for federal income tax purposes.
The Trustee, by its execution and delivery hereof, acknowledges the assignment
to it of the rights to receive such Prepayment Premiums and such Class P Reserve
Fund and declares that it holds and will hold such assets in trust for the
exclusive use and benefit of all present and future Holders of the Class 4-AP
Certificates. The rights of Holders of the Class 4-AP Certificates to receive
distributions from the proceeds of such Prepayment Premiums and such Class
P
Reserve Fund, and all ownership interests of such Holders in and to such
distributions, shall be as set forth in this Agreement.
(m) The
SWAP
REMIC shall consist of all of the assets of the Trust Fund related to Pool
1,
Pool 1C and Pool 2 (other than (i) the Swap Agreement and the Supplemental
Interest Trust, (ii) the Interest Rate Cap Agreement and the Interest Rate
Cap
Account, (iii) the Lower Tier Interests, (iv) the grantor trusts described
in
Section 10.01 hereof, (v) the Pool 1-2 Basis Risk Reserve Fund, (vi) the rights
to receive Prepayment Premiums distributable to the Class P Certificates and
the
Class P Reserve Funds, (vii) the X-I Component Account, (viii) the assets of
the
Grantor Trusts established pursuant to Section 5.02(m) and (ix) the right to
receive FPD Premiums and EPD Premiums. The SWAP REMIC Regular Interests shall
be
designated as the regular interests in the SWAP REMIC, and the Class SW-R
Interest shall be designated as the sole class of residual interest in the
SWAP
REMIC. Each of the SWAP REMIC Regular Interests shall have the characteristics
set forth in the Preliminary Statement.
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REMIC
I-1
shall consist of the SWAP REMIC Regular Interests. The REMIC I-1 Regular
Interests shall be designated as the regular interests in REMIC I-1, and the
Class LTI1-R Interest shall be designated as the sole class of residual interest
in REMIC I-1. Each of the REMIC I-1 Regular Interests shall have the
characteristics set forth in the Preliminary Statement.
The
assets of REMIC I-2 shall be the REMIC I-1 Regular Interests. The REMIC I-2
Regular Interests shall be designated as the regular interests in REMIC I-2
and
the Residual I Interest shall be designated as the sole class of residual
interest in REMIC I-2. For federal income tax purposes, the interest rate on
each REMIC I-2 Regular Interest (other than the Uncertificated Class X-I
Interest and other than the Class LTI2-IO Interest) shall be subject to a cap
equal to the REMIC Pass-Through Rate.
REMIC
II-AX shall consist of all of the assets of the Trust Fund relating to Pool
3
and Pool 4 (other than (i) the Lower Tier Interests, (ii) the grantor trusts
described in Section 10.01 hereof, (iii) the Pool 3-4 Basis Risk Reserve Fund,
(iv) the rights to receive Prepayment Premiums distributable to the Class P
Certificates and the Class P Reserve Funds, (v) the Class X-II Account, (vi)
the
assets of the Grantor Trusts established pursuant to Section 5.02(m) and (vii)
the right to receive FPD Premiums and EPD Premiums. The REMIC II-AX Regular
Interests shall be designated as the regular interests in REMIC II-AX, and
the
Class LTIIAX-R Interest shall be designated as the sole class of residual
interest in REMIC II-AX. Each of the REMIC II-AX Regular Interests shall have
the characteristics set forth in the Preliminary Statement.
The
assets of REMIC II-1 shall be the REMIC II-AX Regular Interests. The REMIC
II-1
Regular Interests shall be designated as the regular interests in REMIC II-1,
and the Class LTII1-R Interest shall be designated as the sole class of residual
interest in REMIC II-1. Each of the REMIC II-1 Regular Interests shall have
the
characteristics set forth in the Preliminary Statement.
The
assets of REMIC II-2 shall be the REMIC II-1 Regular Interests. The REMIC II-2
Regular Interests shall be designated as the regular interests in REMIC II-2
and
the Class LTII2-R Interest shall be designated as the sole class of residual
interest in REMIC II-2. Each of the REMIC II-2 Regular Interests shall have
the
characteristics set forth in the Preliminary Statement.
The
assets of REMIC II-3 shall be the REMIC II-2 Regular Interests. The REMIC II-3
Regular Interests shall be designated as the regular interests in REMIC II-3
and
the Class LTII3-R Interest shall be designated as the sole class of residual
interest in REMIC II-3. Each of the REMIC II-3 Regular Interests shall have
the
characteristics set forth in the Preliminary Statement.
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The
assets of REMIC II-4 shall be the REMIC II-3 Regular Interests. The REMIC II-4
Regular Interests shall be designated as the regular interests in REMIC II-4
and
the Class LTII4-R Interest shall be designated as the sole class of residual
interest in REMIC II-4. Each of the REMIC II-4 Regular Interests shall have
the
characteristics set forth in the Preliminary Statement.
The
assets of REMIC II-5 shall be the REMIC II-4 Regular Interests. The REMIC II-5
Regular Interests shall be designated as the regular interests in REMIC II-5
and
the Class LTII5-R Interest shall be designated as the sole class of residual
interest in REMIC II-5. Each of the REMIC II-5 Regular Interests shall have
the
characteristics set forth in the Preliminary Statement.
The
assets of REMIC II-6 shall be the REMIC II-5 Regular Interests. The REMIC II-6
Regular Interests shall be designated as the regular interests in REMIC II-6
and
the Class LTII6-R Interest shall be designated as the sole class of residual
interest in REMIC II-6. Each of the REMIC II-6 Regular Interests shall have
the
characteristics set forth in the Preliminary Statement.
The
assets of REMIC II-7 shall be the REMIC II-6 Regular Interests. The REMIC II-7
Regular Interests shall be designated as the regular interests in REMIC II-7
and
the Class LTII7-R Interest shall be designated as the sole class of residual
interest in REMIC II-7. Each of the REMIC II-7 Regular Interests shall have
the
characteristics set forth in the Preliminary Statement.
The
assets of REMIC II-8 shall be the REMIC II-7 Regular Interests. The REMIC II-8
Regular Interests shall be designated as the regular interests in REMIC II-8
and
the Class LTII8-R Interest shall be designated as the sole class of residual
interest in REMIC II-8. Each of the REMIC II-8 Regular Interests shall have
the
characteristics set forth in the Preliminary Statement.
The
assets of REMIC II-9 shall be the REMIC II-8 Regular Interests. The REMIC II-9
Regular Interests shall be designated as the regular interests in REMIC II-9
and
the Class LTII9-R Interest shall be designated as the sole class of residual
interest in REMIC II-9. Each of the REMIC II-9 Regular Interests shall have
the
characteristics set forth in the Preliminary Statement.
The
assets of REMIC II-10 shall be the REMIC II-9 Regular Interests. The REMIC
II-10
Regular Interests shall be designated as the regular interests in REMIC II-10
and the Class LTII10-R Interest shall be designated as the sole class of
residual interest in REMIC II-10. Each of the REMIC II-10 Regular Interests
shall have the characteristics set forth in the Preliminary
Statement.
The
assets of REMIC II-11 shall be the REMIC II-10 Regular Interests. The REMIC
II-11 Regular Interests shall be designated as the regular interests in REMIC
II-11 and the Residual II Interest shall be designated as the sole class of
residual interest in REMIC II-11. Each of the REMIC II-11 Regular Interests
shall have the characteristics set forth in the Preliminary
Statement.
-240-
The
beneficial ownership of the residual interest in each REMIC shall be represented
by the Class R Certificate. None of any such interests shall have a principal
balance or bear interest.
(n) It
is
intended that the rights of each Class of Group I Certificates to receive
payments in respect of Excess Interest shall be treated as a right in interest
rate cap contracts written by the holders of the Class X-I Certificates in
favor
of the holders of each Class of the Group I Certificates and such shall be
accounted for as property held separate and apart from the regular interests
in
REMIC I-2 held by the holders of the Group II Certificates. This provision
is
intended to satisfy the requirements of Treasury Regulations Section 1.860G-2(i)
for the treatment of property rights coupled with REMIC interests to be
separately respected and shall be interpreted consistently with such regulation.
On each Distribution Date, to the extent that any of the Group I Certificates
receive payments in respect of Excess Interest, such amounts, to the extent
not
derived from payments on the Interest Rate Cap Agreement, from payments on
the
Swap Agreement, from payments in respect of Class I-I Shortfalls or from
payments in respect of Class X-I Shortfalls as set forth in Section 10.01(p),
will be treated as distributed by REMIC I-2 to the Class X-I Certificates in
respect of the Uncertificated Class X-I Interest pro
rata
and then
paid to the relevant Class of Group I Certificates pursuant to the related
interest cap agreement. The Trustee is hereby directed to perform its duties
and
obligations in accordance with this Section 10.01(n).
It
is
intended that the beneficial owners of the Group I Certificates shall be treated
as having entered into a notional principal contract with respect to the
beneficial owners of the Class X-I Certificates. Pursuant to each such notional
principal contract, all beneficial owners of the Group I Certificates shall
be
treated as having agreed to pay, on each Distribution Date, to the beneficial
owners of the Class X-I Certificates an aggregate amount equal to the excess,
if
any, of (i) the amount payable on such Distribution Date on the Related REMIC
I-2 Interest corresponding to such Class of Group I Certificates over (ii)
the
amount payable on such Class of Group I Certificates on such Distribution Date
(such excess, a “Class I-I Shortfall”). A Class I-I Shortfall shall be allocated
to each Class of Group I Certificates to the extent that interest accrued on
such Class for the related Accrual Period at the Certificate Interest Rate
for a
Class, computed by substituting “REMIC Pass-Through Rate” for the applicable Net
Funds Cap set forth in the definition thereof, exceeds the amount of interest
payable on such Certificate for the related Accrual Period. A Class I-I
Shortfall payable from principal collections shall be allocated to the most
subordinate Class of Group I Certificates with an outstanding principal balance
to the extent of such balance. In addition, pursuant to such notional principal
contract, the beneficial owner of the Class X-I Certificates shall be treated
as
having agreed to make payments in respect of Excess Interest to the beneficial
holders of the Group I Certificates in accordance with the terms of this
Agreement. Any payments to the Group I Certificates in light of the foregoing
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 by beneficial owners
of
Group I Certificates of a Class I-I Shortfall shall be treated for tax purposes
as having been received by the beneficial owners of such Certificates in respect
of their interests in REMIC I-2 and as having been paid by such beneficial
owners to the Class X-I Certificates pursuant to the notional principal
contract. Thus, each Group I Certificate and each Class X-I Certificate shall
be
treated as representing not only ownership of regular interests in REMIC I-2,
but also ownership of an interest in (and obligations with respect to) a
notional principal contract.
-241-
It
is
intended that the rights of each Class of Group II Certificates to receive
payments in respect of Excess Interest shall be treated as a right in interest
rate cap contracts written by the holders of the Class X-II Certificates in
favor of the holders of each Class of Group II Certificates and such shall
be
accounted for as property held separate and apart from the regular interests
in
REMIC II-11 held by the holders of the Group II Certificates. This provision
is
intended to satisfy the requirements of Treasury Regulations Section 1.860G-2(i)
for the treatment of property rights coupled with REMIC interests to be
separately respected and shall be interpreted consistently with such regulation.
On each Distribution Date, to the extent that any of the Group II Certificates
receive payments in respect of Excess Interest, such amounts, to the extent
not
derived from payments in respect of Class I-II Shortfalls or from payments
in
respect of Class X-II Shortfalls as set forth in Section 10.01(p), will be
treated as distributed by REMIC II-11 to the Class X-II Certificates in respect
of the Uncertificated Class X-II Interest pro
rata
and then
paid to the relevant Class Group II Certificates pursuant to the related
interest cap agreement. The Trustee is hereby directed to perform its duties
and
obligations in accordance with this Section 10.01(n).
It
is
intended that the beneficial owners of the Group II Senior Certificates shall
be
treated as having entered into a notional principal contract with respect to
the
beneficial owners of the Class X-II Certificates. Pursuant to each such notional
principal contract, all beneficial owners of the Group II Senior Certificates
shall be treated as having agreed to pay, on each Distribution Date, to the
beneficial owners of the Class X-II Certificates an aggregate amount equal
to
the excess, if any, of (i) the amount payable on such Distribution Date on
the
Related REMIC II-2 Interest corresponding to such Class of Group II Senior
Certificates over (ii) the amount payable on such Class Group II Senior
Certificates on such Distribution Date (such excess, a “Class I-II Shortfall”).
A Class I-II Shortfall shall be allocated to (i) each Class of Group II Senior
Certificates (other than the Class 3-AX and Class 4-AX Certificates) to the
extent that interest accrued on such Class for the related Accrual Period at
the
Certificate Interest Rate for a Class, computed by substituting “REMIC
Pass-Through Rate” for the applicable Net Funds Cap set forth in the definition
thereof, exceeds the amount of interest payable on such Certificate for the
related Accrual Period, (ii) the
Class
3-AX Certificates to the extent that interest accrued on the Class LTII2-3AX
Interest for the related Accrual Period exceeds the amount of interest payable
on such Class of Certificates and (iii)
the
Class
4-AX Certificates to the extent that interest accrued on the Class LTII2-4AX
Interest for the related Accrual Period exceeds the amount of interest payable
on such Class of Certificates.
A Class
I-II Shortfall payable from principal collections shall be allocated to the
most
subordinate Class of Group II Senior Certificates with an outstanding principal
balance to the extent of such balance. In addition, pursuant to such notional
principal contract, the beneficial owner of the Class X-II Certificates shall
be
treated as having agreed to make payments in respect of Excess Interest to
the
beneficial holders of the Group II Certificates in accordance with the terms
of
this Agreement. Any payments to the Group II Certificates in light of the
foregoing 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 by
beneficial owners of Group II Senior Certificates of a Class I-II Shortfall
shall be treated for tax purposes as having been received by the beneficial
owners of such Certificates in respect of their interests in REMIC II-11 and
as
having been paid by such beneficial owners to the Class X-II Certificates
pursuant to the notional principal contract. Thus, each Group II Certificate
and
each Class X-II Certificate shall be treated as representing not only ownership
of regular interests in REMIC II-11, but also ownership of an interest in a
notional principal contract; and each Group II Senior Certificate and each
Class
X-II Certificate shall be treated as representing not only ownership of regular
interests in REMIC II-11, but also obligations with respect to a notional
principal contract. Notwithstanding the foregoing, the “Class I-II Shortfall”
with respect to the Class 4-A1 Underlying Interest shall be the aggregate Class
I-II Shortfall with respect to each of the Underlying 4-A1 REMIC Certificates
for such Distribution Date. The “Class I-II Shortfall” (i) with respect to each
of the Underlying 4-A1 REMIC Certificates (other than the Underlying 4A1
Interest) for each Distribution Date shall equal the excess, if any, of
(1)
the
amount distributable for such Distribution Date on the REMIC II-11 Interest
that
such Underlying 4-A1 REMIC Certificate represents over (2) the amount
distributable on such Underlying 4-A1 REMIC Certificate for such Distribution
Date (determined as the difference between the relative amounts distributable
on
two Exchange Classes or Exchangeable Classes that share the same Related
Underlying REMIC Certificates except for such Underlying 4-A1 REMIC Certificate)
(disregarding amounts treated as paid or received under any Deferred Interest
Cap Agreement and disregarding amounts treated as received from the Master
Servicer as described in Section 10.01(p)); and (ii) with respect to the
Underlying 4A1 Interest, shall equal the excess, if any, of (1) the amount
of
interest distributable with respect to the Class LTII11-4A1 Interest on such
Distribution Date over (2) the amount of interest that would have been
distributable with respect to the Class LTII11-4A1 Interest on such Distribution
Date by substituting “Pool 4 Net Funds Cap” for “Pool 4 Senior REMIC Cap” in its
interest rate.
-242-
(o) The
parties hereto intend that the Uncertificated Class X-I Interest, the
uncertificated Class LTII2-IO Interest, the Interest Rate Cap Agreement, the
Swap Agreement, the Supplemental Interest Trust, the right to receive payments
in respect of Class I-I Shortfalls from the holders of the Group I Certificates,
the Pool 1-2 Basis Risk Reserve Fund, the right to receive payments in respect
of Class X-I Shortfalls as set forth in Section 10.01(p), the right to receive
payments in respect of FPD Premiums and EPD Premiums with respect to Pool 1,
Pool 1C and Pool 2 and the obligation of the holders of the Class X-I
Certificates to pay amounts of Excess Interest to the holders of the Group
I
Certificates shall be treated as a “grantor trust” under the Code, and the
provisions hereof shall be interpreted consistently with this intention. In
furtherance of such intention, the Trustee shall (i) furnish or cause to be
furnished to the holders of the Class X-I Certificates information regarding
their allocable share, if any, of the income with respect to such grantor trust,
(ii) file or cause to be filed with the Internal Revenue Service Form 1041
(together with any necessary attachments) and such other forms as may be
applicable and (iii) comply with such information reporting obligations with
respect to payments from such grantor trust to the holders of Group I
Certificates and Class X-I Certificates as may be applicable under the Code.
The
Trustee is hereby directed to perform its duties and obligations in accordance
with this Section 10.01(o).
The
parties intend that all amounts paid to the Swap Counterparty under the Swap
Agreement shall be deemed for federal income tax purposes to be paid by the
Class X-I Certificates first,
out of
funds deemed received in respect of the Class LTII2-IO Interest, second,
out of
funds deemed received in respect of the Uncertificated Class X-I Interest and
third,
out of
funds deemed received in respect of Class I-I Shortfalls described in Section
10.01(n), and the provisions hereof shall be interpreted consistently with
this
intention.
-243-
The
Supplemental Interest Trust shall be an “outside reserve fund” for federal
income tax purposes and not an asset of any REMIC. Furthermore, the Holders
of
the Class X-I Certificates shall be the beneficial owners of the Supplemental
Interest Trust for all federal income tax purposes, and shall be taxable on
all
income earned thereon.
The
parties hereto intend that the Uncertificated Class X-II Interest, the Pool
3-4
Basis Risk Reserve Fund, the right to receive payments in respect of Class
X-II
Shortfalls as set forth in Section 10.01(p), the right to receive payments
in
respect of Class I-II Shortfalls and the obligation of the holders of the Class
X-II Certificates to pay amounts of Excess Interest to the holders of the Group
II Certificates shall be treated as a “grantor trust” under the Code, and the
provisions hereof shall be interpreted consistently with this intention. In
furtherance of such intention, the Trustee shall (i) furnish or cause to be
furnished to the holders of the Class X-II Certificates information regarding
their allocable share, if any, of the income with respect to such grantor trust,
(ii) file or cause to be filed with the Internal Revenue Service Form 1041
(together with any necessary attachments) and such other forms as may be
applicable and (iii) comply with such information reporting obligations with
respect to payments from such grantor trust to the holders of Group II
Certificates and holders of Class X-II Certificates as may be applicable under
the Code. The Trustee is hereby directed to perform its duties and obligations
in accordance with this Section 10.01(o).
(p) The
excess, if any, of amounts payable with respect to the REMIC regular interests
held by REMIC I-2 over the amounts payable with respect to the REMIC I-2 Regular
Interests with respect to each Accrual Period shall, solely for purposes of
the
REMIC Provisions, be deemed earned by the Master Servicer as an additional
fee,
which amount shall be deemed paid by the Master Servicer to the holders of
the
Class X-I Certificates. It is intended that the rights of the holders of the
Class X-I Certificates to receive such deemed payments (“Class X-I Shortfalls”)
shall be treated as rights in respect of an interest rate cap contract written
by the Master Servicer in favor of the holders of the Class X-I Certificates
and
shall be accounted for as property separate and apart from any REMIC regular
interest represented by the Class X-I Certificates. This provision is intended
to comply with the requirements of Treasury Regulations Section 1.860G-2(i)
for
the treatment of property rights coupled with regular interests to be separately
respected and shall be interpreted consistently with such regulation. The
holders of the Class X-I Certificates agree by their acceptance of such
Certificates, that they will take tax reporting positions that allocate no
more
than a nominal value to the right to receive deemed payments in respect of
Class
X-I Shortfalls. The Master Servicer and Trustee shall agree to take tax
reporting positions consistent with the allocations by the holders of the Class
X-I Certificates of no more than a nominal value to the right to receive deemed
payments in respect of Class X-I Shortfalls. For information reporting purposes,
it will be assumed that such rights have no value. Each payment deemed made
to
the Class X-I Certificates in respect of Class X-I Shortfalls shall be treated
for federal income tax purposes as having been paid to the Master Servicer
as an
additional servicing fee and then paid by the Master Servicer to the Holders
of
the Class X-I Certificates. The Trustee and Master Servicer agree and each
holder or beneficial owner of a Class X-I Certificate agrees, by virtue of
its
acquisition of such Certificate or beneficial interest, to adopt tax reporting
positions consistent with the payments deemed made to the Class X-I Certificates
in respect of Class X-I Shortfalls as payments in respect of interest rate
cap
agreements written by the Master Servicer. The Trustee is hereby directed to
perform its duties and obligations in accordance with this Section
10.01(p).
-244-
The
excess, if any, of amounts payable with respect to the REMIC regular interests
held by REMIC II-2 over the amounts payable with respect to the REMIC II-2
Regular Interests with respect to each Accrual Period shall, solely for purposes
of the REMIC Provisions, be deemed earned by the Master Servicer as an
additional fee, which amount shall be deemed paid by the Master Servicer to
the
holders of the Class X-II Certificates. It is intended that the rights of the
holders of the Class X-II Certificates to receive such deemed payments (“Class
X-II Shortfalls”) shall be treated as rights in respect of an interest rate cap
contract written by the Master Servicer in favor of the holders of the Class
X-II Certificates and shall be accounted for as property separate and apart
from
the REMIC regular interests represented by the Class X-II Certificates. This
provision is intended to comply with the requirements of Treasury Regulations
Section 1.860G-2(i) for the treatment of property rights coupled with regular
interests to be separately respected and shall be interpreted consistently
with
such regulation. The holders of the Class X-II Certificates agree by their
acceptance of such Certificates, that they will take tax reporting positions
that allocate no more than a nominal value to the right to receive deemed
payments in respect of Class X-II Shortfalls. The Master Servicer and Trustee
shall agree to take tax reporting positions consistent with the allocations
by
the holders of the Class X-II Certificates of no more than a nominal value
to
the right to receive deemed payments in respect of Class X-II Shortfalls. For
information reporting purposes, it will be assumed that such rights have no
value. Each payment deemed made to the Class X-II Certificates in respect of
Class X-II Shortfalls shall be treated for federal income tax purposes as having
been paid to the Master Servicer as an additional servicing fee and then paid
by
the Master Servicer to the Holders of the Class X-II Certificates. The Trustee
and Master Servicer agree and each holder or beneficial owner of a Class X-II
Certificate agrees, by virtue of its acquisition of such Certificate or
beneficial interest, to adopt tax reporting positions consistent with the
payments deemed made to the Class X-II Certificates in respect of Class X-II
Shortfalls as payments in respect of interest rate cap agreements written by
the
Master Servicer. The Trustee is hereby directed to perform its duties and
obligations in accordance with this Section 10.01(p).
The
excess, if any, of amounts payable with respect to the REMIC regular interests
held by REMIC II-4 over the amounts payable with respect to the REMIC II-4
Regular Interests with respect to each Accrual Period shall, solely for purposes
of the REMIC Provisions, be deemed earned by the Master Servicer as an
additional fee, which amount shall be deemed paid by the Master Servicer for
the
benefit of the Underlying 4A1IA Interest. It is intended that the rights of
the
holders of the Underlying 4A1IA Interest to receive the benefit of such deemed
payments (“Class 4-A1IA Shortfalls”) shall be treated as rights in respect of an
interest rate cap contract written by the Master Servicer for the benefit of
the
Underlying 4A1IA Interest and shall be accounted for as property separate and
apart from any REMIC regular interest represented by the Underlying 4A1IA
Interest. This provision is intended to comply with the requirements of Treasury
Regulations Section 1.860G-2(i) for the treatment of property rights coupled
with regular interests to be separately respected and shall be interpreted
consistently with such regulation. The holders of the Underlying 4A1IA Interest
agree by their acceptance thereof, that they will take tax reporting positions
that allocate no more than a nominal value to the right to receive the benefit
of deemed payments in respect of Class 4-A1IA Shortfalls. The Master Servicer
and Trustee shall agree to take tax reporting positions consistent with the
allocations by the holders of the Underlying 4A1IA Interest of no more than
a
nominal value to the right to receive the benefit of deemed payments in respect
of Class 4-A1IA Shortfalls. For information reporting purposes, it will be
assumed that such rights have no value. Each payment deemed made for the benefit
of the Underlying 4A1IA Interest in respect of Class 4-A1IA Shortfalls shall
be
treated for federal income tax purposes as having been paid to the Master
Servicer as an additional servicing fee and then paid by the Master Servicer
for
the benefit of the Underlying 4A1IA Interest. The Trustee and Master Servicer
agree and each holder or beneficial owner of a Underlying 4A1IA Interest agrees,
by virtue of its acquisition of such Certificate or beneficial interest, to
adopt tax reporting positions consistent with the payments deemed made for
the
benefit of the Underlying 4A1IA Interest in respect of Class 4-A1IA Shortfalls
as payments in respect of interest rate cap agreements written by the Master
Servicer. The Trustee is hereby directed to perform its duties and obligations
in accordance with this Section 10.01(p).
-245-
The
excess, if any, of amounts payable with respect to the REMIC regular interests
held by REMIC II-5 over the amounts payable with respect to the REMIC II-5
Regular Interests with respect to each Accrual Period shall, solely for purposes
of the REMIC Provisions, be deemed earned by the Master Servicer as an
additional fee, which amount shall be deemed paid by the Master Servicer for
the
benefit of the Underlying 4A1IB Interest. It is intended that the rights of
the
holders of the Underlying 4A1IB Interest to receive the benefit of such deemed
payments (“Class 4-A1IB Shortfalls”) shall be treated as rights in respect of an
interest rate cap contract written by the Master Servicer for the benefit of
the
Underlying 4A1IB Interest and shall be accounted for as property separate and
apart from any REMIC regular interest represented by the Underlying 4A1IB
Interest. This provision is intended to comply with the requirements of Treasury
Regulations Section 1.860G-2(i) for the treatment of property rights coupled
with regular interests to be separately respected and shall be interpreted
consistently with such regulation. The holders of the Underlying 4A1IB Interest
agree by their acceptance thereof, that they will take tax reporting positions
that allocate no more than a nominal value to the right to receive the benefit
of deemed payments in respect of Class 4-A1IB Shortfalls. The Master Servicer
and Trustee shall agree to take tax reporting positions consistent with the
allocations by the holders of the Underlying 4A1IB Interest of no more than
a
nominal value to the right to receive the benefit of deemed payments in respect
of Class 4-A1IB Shortfalls. For information reporting purposes, it will be
assumed that such rights have no value. Each payment deemed made for the benefit
of the Underlying 4A1IB Interest in respect of Class 4-A1IB Shortfalls shall
be
treated for federal income tax purposes as having been paid to the Master
Servicer as an additional servicing fee and then paid by the Master Servicer
for
the benefit of the Underlying 4A1IB Interest. The Trustee and Master Servicer
agree and each holder or beneficial owner of a Underlying 4A1IB Interest agrees,
by virtue of its acquisition of such Certificate or beneficial interest, to
adopt tax reporting positions consistent with the payments deemed made for
the
benefit of the Underlying 4A1IB Interest in respect of Class 4-A1IB Shortfalls
as payments in respect of interest rate cap agreements written by the Master
Servicer. The Trustee is hereby directed to perform its duties and obligations
in accordance with this Section 10.01(p).
The
excess, if any, of amounts payable with respect to the REMIC regular interests
held by REMIC II-6 over the amounts payable with respect to the REMIC II-6
Regular Interests with respect to each Accrual Period shall, solely for purposes
of the REMIC Provisions, be deemed earned by the Master Servicer as an
additional fee, which amount shall be deemed paid by the Master Servicer for
the
benefit of the Underlying 4A1IC Interest. It is intended that the rights of
the
holders of the Underlying 4A1IC Interest to receive the benefit of such deemed
payments (“Class 4-A1IC Shortfalls”) shall be treated as rights in respect of an
interest rate cap contract written by the Master Servicer for the benefit of
the
Underlying 4A1IC Interest and shall be accounted for as property separate and
apart from any REMIC regular interest represented by the Underlying 4A1IC
Interest. This provision is intended to comply with the requirements of Treasury
Regulations Section 1.860G-2(i) for the treatment of property rights coupled
with regular interests to be separately respected and shall be interpreted
consistently with such regulation. The holders of the Underlying 4A1IC Interest
agree by their acceptance thereof, that they will take tax reporting positions
that allocate no more than a nominal value to the right to receive the benefit
of deemed payments in respect of Class 4-A1IC Shortfalls. The Master Servicer
and Trustee shall agree to take tax reporting positions consistent with the
allocations by the holders of the Underlying 4A1IC Interest of no more than
a
nominal value to the right to receive the benefit of deemed payments in respect
of Class 4-A1IC Shortfalls. For information reporting purposes, it will be
assumed that such rights have no value. Each payment deemed made for the benefit
of the Underlying 4A1IC Interest in respect of Class 4-A1IC Shortfalls shall
be
treated for federal income tax purposes as having been paid to the Master
Servicer as an additional servicing fee and then paid by the Master Servicer
for
the benefit of the Underlying 4A1IC Interest. The Trustee and Master Servicer
agree and each holder or beneficial owner of a Underlying 4A1IC Interest agrees,
by virtue of its acquisition of such Certificate or beneficial interest, to
adopt tax reporting positions consistent with the payments deemed made for
the
benefit of the Underlying 4A1IC Interest in respect of Class 4-A1IC Shortfalls
as payments in respect of interest rate cap agreements written by the Master
Servicer. The Trustee is hereby directed to perform its duties and obligations
in accordance with this Section 10.01(p).
-246-
The
excess, if any, of amounts payable with respect to the REMIC regular interests
held by REMIC II-7 over the amounts payable with respect to the REMIC II-7
Regular Interests with respect to each Accrual Period shall, solely for purposes
of the REMIC Provisions, be deemed earned by the Master Servicer as an
additional fee, which amount shall be deemed paid by the Master Servicer for
the
benefit of the Underlying 4A1ID Interest. It is intended that the rights of
the
holders of the Underlying 4A1ID Interest to receive the benefit of such deemed
payments (“Class 4-A1ID Shortfalls”) shall be treated as rights in respect of an
interest rate cap contract written by the Master Servicer for the benefit of
the
Underlying 4A1ID Interest and shall be accounted for as property separate and
apart from any REMIC regular interest represented by the Underlying 4A1ID
Interest. This provision is intended to comply with the requirements of Treasury
Regulations Section 1.860G-2(i) for the treatment of property rights coupled
with regular interests to be separately respected and shall be interpreted
consistently with such regulation. The holders of the Underlying 4A1ID Interest
agree by their acceptance thereof, that they will take tax reporting positions
that allocate no more than a nominal value to the right to receive the benefit
of deemed payments in respect of Class 4-A1ID Shortfalls. The Master Servicer
and Trustee shall agree to take tax reporting positions consistent with the
allocations by the holders of the Underlying 4A1ID Interest of no more than
a
nominal value to the right to receive the benefit of deemed payments in respect
of Class 4-A1ID Shortfalls. For information reporting purposes, it will be
assumed that such rights have no value. Each payment deemed made for the benefit
of the Underlying 4A1ID Interest in respect of Class 4-A1ID Shortfalls shall
be
treated for federal income tax purposes as having been paid to the Master
Servicer as an additional servicing fee and then paid by the Master Servicer
for
the benefit of the Underlying 4A1ID Interest. The Trustee and Master Servicer
agree and each holder or beneficial owner of a Underlying 4A1ID Interest agrees,
by virtue of its acquisition of such Certificate or beneficial interest, to
adopt tax reporting positions consistent with the payments deemed made for
the
benefit of the Underlying 4A1ID Interest in respect of Class 4-A1ID Shortfalls
as payments in respect of interest rate cap agreements written by the Master
Servicer. The Trustee is hereby directed to perform its duties and obligations
in accordance with this Section 10.01(p).
-247-
The
excess, if any, of amounts payable with respect to the REMIC regular interests
held by REMIC II-8 over the amounts payable with respect to the REMIC II-8
Regular Interests with respect to each Accrual Period shall, solely for purposes
of the REMIC Provisions, be deemed earned by the Master Servicer as an
additional fee, which amount shall be deemed paid by the Master Servicer for
the
benefit of the Underlying 4A1IE Interest. It is intended that the rights of
the
holders of the Underlying 4A1IE Interest to receive the benefit of such deemed
payments (“Class 4-A1IE Shortfalls”) shall be treated as rights in respect of an
interest rate cap contract written by the Master Servicer for the benefit of
the
Underlying 4A1IE Interest and shall be accounted for as property separate and
apart from any REMIC regular interest represented by the Underlying 4A1IE
Interest. This provision is intended to comply with the requirements of Treasury
Regulations Section 1.860G-2(i) for the treatment of property rights coupled
with regular interests to be separately respected and shall be interpreted
consistently with such regulation. The holders of the Underlying 4A1IE Interest
agree by their acceptance thereof, that they will take tax reporting positions
that allocate no more than a nominal value to the right to receive the benefit
of deemed payments in respect of Class 4-A1IE Shortfalls. The Master Servicer
and Trustee shall agree to take tax reporting positions consistent with the
allocations by the holders of the Underlying 4A1IE Interest of no more than
a
nominal value to the right to receive the benefit of deemed payments in respect
of Class 4-A1IE Shortfalls. For information reporting purposes, it will be
assumed that such rights have no value. Each payment deemed made for the benefit
of the Underlying 4A1IE Interest in respect of Class 4-A1IE Shortfalls shall
be
treated for federal income tax purposes as having been paid to the Master
Servicer as an additional servicing fee and then paid by the Master Servicer
for
the benefit of the Underlying 4A1IE Interest. The Trustee and Master Servicer
agree and each holder or beneficial owner of a Underlying 4A1IE Interest agrees,
by virtue of its acquisition of such Certificate or beneficial interest, to
adopt tax reporting positions consistent with the payments deemed made for
the
benefit of the Underlying 4A1IE Interest in respect of Class 4-A1IE Shortfalls
as payments in respect of interest rate cap agreements written by the Master
Servicer. The Trustee is hereby directed to perform its duties and obligations
in accordance with this Section 10.01(p).
The
excess, if any, of amounts payable with respect to the REMIC regular interests
held by REMIC II-9 over the amounts payable with respect to the REMIC II-9
Regular Interests with respect to each Accrual Period shall, solely for purposes
of the REMIC Provisions, be deemed earned by the Master Servicer as an
additional fee, which amount shall be deemed paid by the Master Servicer for
the
benefit of the Underlying 4A1IF Interest. It is intended that the rights of
the
holders of the Underlying 4A1IF Interest to receive the benefit of such deemed
payments (“Class 4-A1IF Shortfalls”) shall be treated as rights in respect of an
interest rate cap contract written by the Master Servicer for the benefit of
the
Underlying 4A1IF Interest and shall be accounted for as property separate and
apart from any REMIC regular interest represented by the Underlying 4A1IF
Interest. This provision is intended to comply with the requirements of Treasury
Regulations Section 1.860G-2(i) for the treatment of property rights coupled
with regular interests to be separately respected and shall be interpreted
consistently with such regulation. The holders of the Underlying 4A1IF Interest
agree by their acceptance thereof, that they will take tax reporting positions
that allocate no more than a nominal value to the right to receive the benefit
of deemed payments in respect of Class 4-A1IF Shortfalls. The Master Servicer
and Trustee shall agree to take tax reporting positions consistent with the
allocations by the holders of the Underlying 4A1IF Interest of no more than
a
nominal value to the right to receive the benefit of deemed payments in respect
of Class 4-A1IF Shortfalls. For information reporting purposes, it will be
assumed that such rights have no value. Each payment deemed made for the benefit
of the Underlying 4A1IF Interest in respect of Class 4-A1IF Shortfalls shall
be
treated for federal income tax purposes as having been paid to the Master
Servicer as an additional servicing fee and then paid by the Master Servicer
for
the benefit of the Underlying 4A1IF Interest. The Trustee and Master Servicer
agree and each holder or beneficial owner of a Underlying 4A1IF Interest agrees,
by virtue of its acquisition of such Certificate or beneficial interest, to
adopt tax reporting positions consistent with the payments deemed made for
the
benefit of the Underlying 4A1IF Interest in respect of Class 4-A1IF Shortfalls
as payments in respect of interest rate cap agreements written by the Master
Servicer. The Trustee is hereby directed to perform its duties and obligations
in accordance with this Section 10.01(p).
-248-
The
excess, if any, of amounts payable with respect to the REMIC regular interests
held by REMIC II-10 over the amounts payable with respect to the REMIC II-10
Regular Interests with respect to each Accrual Period shall, solely for purposes
of the REMIC Provisions, be deemed earned by the Master Servicer as an
additional fee, which amount shall be deemed paid by the Master Servicer for
the
benefit of the Underlying 4A1IG Interest. It is intended that the rights of
the
holders of the Underlying 4A1IG Interest to receive the benefit of such deemed
payments (“Class 4-A1IG Shortfalls”) shall be treated as rights in respect of an
interest rate cap contract written by the Master Servicer for the benefit of
the
Underlying 4A1IG Interest and shall be accounted for as property separate and
apart from any REMIC regular interest represented by the Underlying 4A1IG
Interest. This provision is intended to comply with the requirements of Treasury
Regulations Section 1.860G-2(i) for the treatment of property rights coupled
with regular interests to be separately respected and shall be interpreted
consistently with such regulation. The holders of the Underlying 4A1IG Interest
agree by their acceptance thereof, that they will take tax reporting positions
that allocate no more than a nominal value to the right to receive the benefit
of deemed payments in respect of Class 4-A1IG Shortfalls. The Master Servicer
and Trustee shall agree to take tax reporting positions consistent with the
allocations by the holders of the Underlying 4A1IG Interest of no more than
a
nominal value to the right to receive the benefit of deemed payments in respect
of Class 4-A1IG Shortfalls. For information reporting purposes, it will be
assumed that such rights have no value. Each payment deemed made for the benefit
of the Underlying 4A1IG Interest in respect of Class 4-A1IG Shortfalls shall
be
treated for federal income tax purposes as having been paid to the Master
Servicer as an additional servicing fee and then paid by the Master Servicer
for
the benefit of the Underlying 4A1IG Interest. The Trustee and Master Servicer
agree and each holder or beneficial owner of a Underlying 4A1IG Interest agrees,
by virtue of its acquisition of such Certificate or beneficial interest, to
adopt tax reporting positions consistent with the payments deemed made for
the
benefit of the Underlying 4A1IG Interest in respect of Class 4-A1IG Shortfalls
as payments in respect of interest rate cap agreements written by the Master
Servicer. The Trustee is hereby directed to perform its duties and obligations
in accordance with this Section 10.01(p).
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The
excess, if any, of amounts payable with respect to the REMIC regular interests
held by REMIC II-11 over the amounts payable with respect to the REMIC II-11
Regular Interests with respect to each Accrual Period shall, solely for purposes
of the REMIC Provisions, be deemed earned by the Master Servicer as an
additional fee, which amount shall be deemed paid by the Master Servicer for
the
benefit of the Underlying 4A1IH Interest. It is intended that the rights of
the
holders of the Underlying 4A1IH Interest to receive the benefit of such deemed
payments (“Class 4-A1IH Shortfalls”) shall be treated as rights in respect of an
interest rate cap contract written by the Master Servicer for the benefit of
the
Underlying 4A1IH Interest and shall be accounted for as property separate and
apart from any REMIC regular interest represented by the Underlying 4A1IH
Interest. This provision is intended to comply with the requirements of Treasury
Regulations Section 1.860G-2(i) for the treatment of property rights coupled
with regular interests to be separately respected and shall be interpreted
consistently with such regulation. The holders of the Underlying 4A1IH Interest
agree by their acceptance thereof, that they will take tax reporting positions
that allocate no more than a nominal value to the right to receive the benefit
of deemed payments in respect of Class 4-A1IH Shortfalls. The Master Servicer
and Trustee shall agree to take tax reporting positions consistent with the
allocations by the holders of the Underlying 4A1IH Interest of no more than
a
nominal value to the right to receive the benefit of deemed payments in respect
of Class 4-A1IH Shortfalls. For information reporting purposes, it will be
assumed that such rights have no value. Each payment deemed made for the benefit
of the Underlying 4A1IH Interest in respect of Class 4-A1IH Shortfalls shall
be
treated for federal income tax purposes as having been paid to the Master
Servicer as an additional servicing fee and then paid by the Master Servicer
for
the benefit of the Underlying 4A1IH Interest. The Trustee and Master Servicer
agree and each holder or beneficial owner of a Underlying 4A1IH Interest agrees,
by virtue of its acquisition of such Certificate or beneficial interest, to
adopt tax reporting positions consistent with the payments deemed made for
the
benefit of the Underlying 4A1IH Interest in respect of Class 4-A1IH Shortfalls
as payments in respect of interest rate cap agreements written by the Master
Servicer. The Trustee is hereby directed to perform its duties and obligations
in accordance with this Section 10.01(p).
(q) Payments
in the nature of expenses, reimbursements and indemnifications made from the
Trust Fund shall be allocated and limited to collections or other recoveries
on
the related Mortgage Pool or Mortgage Pools (if applicable) and shall be
accounted for in such manner.
(r) The
Trustee shall treat the X-I Component Account as an outside reserve fund within
the meaning of Treasury Regulation 1.860G-2(h) that is owned by the Holder
of
the Class C-I Certificates and that is not an asset of any REMIC.
The
Trustee shall treat the Class X-II Account as an outside reserve fund within
the
meaning of Treasury Regulation 1.860G-2(h) that is owned by the Holder of the
Class C-II Certificates and that is not an asset of any REMIC.
(s) The
SWAP REMIC:
On each
Distribution Date, the Trustee shall first pay or charge as an expense of the
SWAP REMIC all expenses of the Trust Fund relating to Pool 1, Pool 1C and Pool
2
for such Distribution Date, other than any Net Swap Payment or Swap Termination
Payment required to be made from the Trust Fund.
-250-
On
each
Distribution Date the Trustee shall distribute the aggregate Interest Remittance
Amount for Pool 1, Pool 1C and Pool 2 (net of expenses described in the
preceding paragraph) with respect to each of the SWAP REMIC Regular Interests
based on the interest rates for such interests set forth in the Preliminary
Statement hereto.
On
each
Distribution Date, the Trustee shall distribute the aggregate Principal
Remittance Amount with respect to Pool 1, Pool 1C and Pool 2 with respect to
the
SWAP REMIC Regular Interests, first to the Class SW-Z Interest until its
principal balance is reduced to zero, and then sequentially, to the other SWAP
REMIC Regular Interests in ascending order of their numerical Class designation,
and, with respect to each pair of Classes having the same numerical designation,
in equal amounts to each such Class, until the principal balance of each such
Class is reduced to zero. All losses on the Mortgage Loans in Pool 1, Pool
1C
and Pool 2 shall be allocated among the SWAP REMIC Regular Interests in the
same
manner that principal distributions are allocated. Increases in principal amount
as a result of Subsequent Recoveries with respect to the Mortgage Loans in
Pool
1, Pool 1C and Pool 2 shall be allocated among the SWAP Regular Interests in
the
reverse fashion from the manner in which losses are allocated. Increases in
principal amount as a result of Net Negative Amortization with respect to the
Mortgage Loans in Pool 1, Pool 1C and Pool 2 for any Distribution Date shall
be
allocated among the SWAP REMIC Regular Interests, first to the Class SW-Z
Interest up to an amount equal to the accrued interest thereon for such
Distribution Date, and then sequentially, to the other SWAP REMIC Regular
Interests in ascending order of their numerical Class designation, and, with
respect to each pair of Classes having the same numerical designation, in equal
amounts to each such Class, up to an amount equal to the accrued interest
thereon for such Distribution Date. Any amounts remaining in the SWAP REMIC
after the aforementioned distributions shall be distributed to the Class SW-R
Interest.
REMIC
I-1:
All
payments received by REMIC I-1 with respect to the SWAP REMIC Regular Interests
shall be paid to the REMIC I-1 Regular Interests until the principal balance
of
all such interests have been reduced to zero and any losses allocated to such
interests have been reimbursed. Any excess amounts shall be distributed to
the
Class LTI1-R Interest.
On
each
Distribution Date,
(i) interest
shortfalls with respect to the Mortgage Loans in Pool 1, Pool 1C and Pool 2
(other than interest shortfalls attributable to Negative Amortization) shall
be
allocated to the REMIC I-1 Regular Interests (other than the Class LTI1-IO
Interest) pro
rata
based on
the interest otherwise accrued thereon;
(ii) the
principal balance of each REMIC I-1 Regular Interest shall be increased by
the
amount of interest accrued thereon (net of interest shortfalls allocated thereto
pursuant to the immediately preceding clause (i));
(iii) cash
received by REMIC I-1 with respect to the SWAP REMIC Regular Interests shall
be
distributed first to the Class LTI1-IO Interest in reduction of their principal
balances so that their principal balances are as close as possible to zero.
Any
remaining cash shall be distributed to, and losses with respect to the Pool
1,
Pool 1C and Pool 2 Mortgage Loans shall be allocated to:
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first,
to the
Class LTI1-M7I Interest in reduction of its principal balance so that its
principal balance is as close as possible to 50% of the principal balance of
its
Corresponding Class;
second,
to the
Class LTI1-M6I Interest in reduction of its principal balance so that its
principal balance is as close as possible to 50% of the principal balance of
its
Corresponding Class;
third,
to the
Class LTI1-M5I Interest in reduction of its principal balance so that its
principal balance is as close as possible to 50% of the principal balance of
its
Corresponding Class;
fourth,
to the
Class LTI1-M4I Interest in reduction of its principal balance so that its
principal balance is as close as possible to 50% of the principal balance of
its
Corresponding Class;
fifth,
to the
Class LTI1-M3I Interest in reduction of its principal balance so that its
principal balance is as close as possible to 50% of the principal balance of
its
Corresponding Class;
sixth,
to the
Class LTI1-M2I Interest in reduction of its principal balance so that its
principal balance is as close as possible to 50% of the principal balance of
its
Corresponding Class;
seventh,
to the
Class LTI1-M1I Interest in reduction of its principal balance so that its
principal balance is as close as possible to 50% of the principal balance of
its
Corresponding Class;
eighth,
to the
Class LTI1-2A3 Interest in reduction of its principal balance so that its
principal balance is as close as possible to 50% of the principal balance of
its
Corresponding Class;
ninth,
to the
Class LTI1-1CA3 Interest in reduction of its principal balance so that its
principal balance is as close as possible to 50% of the principal balance of
its
Corresponding Class;
tenth,
to the
Class LTI1-1A3 Interest in reduction of its principal balance so that its
principal balance is as close as possible to 50% of the principal balance of
its
Corresponding Class;
eleventh,
to the
Class LTI1-2A2 Interest in reduction of its principal balance so that its
principal balance is as close as possible to 50% of the principal balance of
its
Corresponding Class;
twelfth,
to the
Class LTI1-1CA2 Interest in reduction of its principal balance so that its
principal balance is as close as possible to 50% of the principal balance of
its
Corresponding Class;
-252-
thirteenth,
to the
Class LTI1-1A2 Interest in reduction of its principal balance so that its
principal balance is as close as possible to 50% of the principal balance of
its
Corresponding Class;
fourteenth,
to the
Class LTI1-1CA1 Interest in reduction of its principal balance so that its
principal balance is as close as possible to 50% of the principal balance of
its
Corresponding Class;
fifteenth,
to the
Class LTI1-1A1 Interest in reduction of its principal balance so that its
principal balance is as close as possible to 50% of the principal balance of
its
Corresponding Class;
sixteenth,
to the
Class LTI1-2A1 Interest in reduction of its principal balance so that its
principal balance is as close as possible to 50% of the principal balance of
its
Corresponding Class;
seventeenth,
to the
Class LTI1-M8I Interest in reduction of its principal balance so that its
principal balance is as close as possible to 50% of the principal balance of
its
Corresponding Class;
eighteenth,
to the
Class LTI1-M9I Interest in reduction of its principal balance so that its
principal balance is as close as possible to 50% of the principal balance of
its
Corresponding Class; and
nineteenth,
to the
Class LTI1-X Interest in reduction of its principal balance so that its
principal balance is as close as possible to the sum of (x) 50% of the aggregate
Scheduled Principal Balance of the Mortgage Loans in Pool 1, Pool 1C and Pool
2
and (y) 50% of the Pool 1-2 Overcollateralization Amount.
If
on any
Distribution Date there is an increase in the Certificate Principal Amount
of
any Group I Certificate as a result of the proviso in the definition of
Certificate Principal Amount, then there shall be a corresponding increase
in
the principal amount of the REMIC I-1 Regular Interests (other than the Class
LTI1-IO Interest) allocated as follows:
first,
to each
of the REMIC I-1 Regular Interests (other than the Class LTI1-X Interest and
other than the Class LTI1-IO Interest) so that the principal balance of each
such interest is as close as possible to 50% of the principal balance of its
Corresponding Class; and
second,
to the
Class LTI1-X Interest so that the principal balance of such interest is as
close
as possible to the sum of (x) 50% of the aggregate Scheduled Principal Balance
of the Mortgage Loans in Pool 1, Pool 1C and Pool 2 and (y) 50% of the Pool
1-2
Overcollateralization Amount.
(t) REMIC
II-AX:
On each
Distribution Date, the Trustee shall first pay or charge as an expense of REMIC
II-AX all expenses of the Trust Fund related to Pool 3 and Pool 4 for such
Distribution Date. All payments of principal and interest at the Net Mortgage
Rate on each of the Mortgage Loans received with respect to the Mortgage Loans
in Pool 3 and Pool 4 (net of the Certificate Insurer Premium) shall be paid
to
the REMIC II-AX Regular Interests until the principal balance of all such
interests have been reduced to zero and any losses allocated to such interests
have been reimbursed. Any excess amounts shall be distributed to the Class
LTIIAX-R Interest.
-253-
On
each
Distribution Date, (i) payments and allocations shall be made in respect of
the
Class LTIIAX-40%3AX Interest in the amounts necessary so that its principal
amount equals 40% of the aggregate principal amounts of the Pool 3 Senior
Certificates (other than the Class 3-AX Certificates) after giving effect to
distributions and allocations on such Distribution Date, (ii) payments and
allocations shall be made in respect of the Class LTIIAX-10%3AX Interest in
the
amounts necessary so that its principal amount equals 10% of the aggregate
principal amounts of the Pool 3 Senior Certificates (other than the Class 3-AX
Certificates) after giving effect to distributions and allocations on such
Distribution Date, (iii) payments and allocations shall be made in respect
of
the Class LTIIAX-40%4AX Interest in the amounts necessary so that its principal
amount equals 40% of the aggregate principal amounts of the Pool 4 Senior
Certificates (other than the Class 4-AX Certificates) after giving effect to
distributions and allocations on such Distribution Date and (iv) payments and
allocations shall be made in respect of the Class LTIIAX-10%4AX Interest in
the
amounts necessary so that its principal amount equals 10% of the aggregate
principal amounts of the Pool 4 Senior Certificates (other than the Class 4-AX
Certificates) after giving effect to distributions and allocations on such
Distribution Date. All remaining amounts with respect to Pool 3 shall be paid
and allocated in respect of the Class LTIIAX-3Z Interest, and all remaining
amounts with respect to Pool 4 shall be paid and allocated in respect of the
Class LTIIAX-4Z Interest.
REMIC
II-1:
All
payments received by REMIC II-1 shall be paid to the REMIC II-1 Regular
Interests until the principal balance of all such interests have been reduced
to
zero and any losses allocated to such interests have been reimbursed. Any excess
amounts shall be distributed to the Class LTII1-R Interest.
On
each
Distribution Date, (i) distributions shall be made in respect of the
Class
LTII1-3AX
Interest in an amount equal to the amount of interest accrued thereon for such
Distribution Date (taking into account shortfalls allocated to the Class 3-AX
Certificates) and (ii) distributions shall be made in respect of the Class
LTII1-4AX Interest in an amount equal to the amount of interest accrued thereon
for such Distribution Date (taking into account shortfalls allocated to the
Class 3-AX Certificates). Shortfalls in amounts available for distribution
pursuant to the preceding sentence attributable to Negative Amortization shall
be carried forward but shall not accrue interest. Then, from all remaining
amounts related to Pool 3 and Pool 4 to be paid and allocated on each
Distribution Date,
(i) interest
shortfalls with respect to the Pool 3 and Pool 4 Mortgage Loans (other than
interest shortfalls attributable to Negative Amortization) shall be allocated
to
the REMIC II-1 Regular Interests (other than the Class LTII1-3AX Interest and
the Class LTII1-4AX Interest) pro
rata
based on
the interest otherwise accrued thereon;
(ii) the
principal balance of each REMIC II-1 Regular Interest (other than the Class
LTII1-3AX Interest and the Class LTII1-4AX Interest) shall be increased by
the
amount of interest accrued thereon (net of interest shortfalls allocated thereto
pursuant to the immediately preceding clause (i));
-254-
(iii) 50%
of
the remaining cash received by REMIC II-1 with respect to the Pool 3 and Pool
4
Mortgage Loans shall be distributed to, and 50% of losses with respect to the
Pool 3 and Pool 4 Mortgage Loans shall be allocated to the REMIC II-1II Marker
Classes and the Class LTII1-XII Interest in reduction of their principal amounts
as follows:
(A) first,
to each
of the REMIC II-1II Marker Classes ending with the designation “B”, so that its
principal balance is as close as possible to .0005% of the aggregate Scheduled
Principal Balance of the Mortgage Loans in the related Mortgage
Pool;
(B) second,
to each
of the REMIC II-1II Marker Classes ending with the designation “A”, so that its
principal balance is as close as possible to .0005% of the excess of (x) the
aggregate Scheduled Principal Balance of the Mortgage Loans in the related
Mortgage Pool over (y) the aggregate principal amounts of the Classes of related
Senior Certificates after giving effect to distributions and allocations on
such
Distribution Date (provided that the REMIC II-1 Subordinated Balance Ratio
is
maintained); and
(C) third,
to the
Class LTII1-XII Interest, all remaining amounts;
(iv) 50%
of
the remaining cash received by REMIC II-1 with respect to the Pool 3 and Pool
4
Mortgage Loans shall be distributed to, and 50% of losses with respect to the
Pool 3 and Pool 4 Mortgage Loans shall be allocated to the REMIC II-1I Marker
Classes and the Class LTII1-XI Interest in reduction of their principal amounts
sequentially as follows:
(A) to
the
Class LTII1-M9II Interest in reduction of its principal balance so that its
principal balance is as close as possible to 25% of the principal balance of
its
Corresponding Class;
(B) to
the
Class LTII1-M8II Interest in reduction of its principal balance so that its
principal balance is as close as possible to 25% of the principal balance of
its
Corresponding Class;
(C) to
the
Class LTII1-M7II Interest in reduction of its principal balance so that its
principal balance is as close as possible to 25% of the principal balance of
its
Corresponding Class;
(D) to
the
Class LTII1-M6II Interest in reduction of its principal balance so that its
principal balance is as close as possible to 25% of the principal balance of
its
Corresponding Class;
-255-
(E) to
the
Class LTII1-M5II Interest in reduction of its principal balance so that its
principal balance is as close as possible to 25% of the principal balance of
its
Corresponding Class;
(F) to
the
Class LTII1-M4II Interest in reduction of its principal balance so that its
principal balance is as close as possible to 25% of the principal balance of
its
Corresponding Class;
(G) to
the
Class LTII1-M3II Interest in reduction of its principal balance so that its
principal balance is as close as possible to 25% of the principal balance of
its
Corresponding Class;
(H) to
the
Class LTII1-M2II Interest in reduction of its principal balance so that its
principal balance is as close as possible to 25% of the principal balance of
its
Corresponding Class;
(I) to
the
Class LTII1-4A1 Interest in reduction of its principal balance so that its
principal balance is as close as possible to 25% of the principal balance of
its
Corresponding Class;
(J) to
the
Class LTII1-M1II Interest in reduction of its principal balance so that its
principal balance is as close as possible to 25% of the principal balance of
its
Corresponding Class;
(K) to
the
Class LTII1-4A2B Interest in reduction of its principal balance so that its
principal balance is as close as possible to 25% of the principal balance of
its
Corresponding Class;
(L) to
the
Class LTII1-4A2A Interest in reduction of its principal balance so that its
principal balance is as close as possible to 25% of the principal balance of
its
Corresponding Class;
(M) to
the
Class LTII1-4A3 Interest in reduction of its principal balance so that its
principal balance is as close as possible to 25% of the principal balance of
its
Corresponding Class;
(N) to
the
Class LTII1-3A2 Interest in reduction of its principal balance so that its
principal balance is as close as possible to 25% of the principal balance of
its
Corresponding Class;
(O) to
the
Class LTII1-3A1 Interest in reduction of its principal balance so that its
principal balance is as close as possible to 25% of the principal balance of
its
Corresponding Class;
(P) to
the
Class LTII1-XI Interest in reduction of its principal balance so that its
principal balance is as close as possible to the sum of (x) 25% of the aggregate
Scheduled Principal Balance of the Pool 3 and Pool 4 Mortgage Loans and (y)
25%
of the Pool 3-4 Overcollateralization Amount.
-256-
If
on any
Distribution Date there is an increase in the Certificate Principal Amount
of
any Group II Certificate as a result of the proviso relating to Subsequent
Recoveries in the definition of Certificate Principal Amount, then there shall
be a corresponding increase in the principal amount of the REMIC II-1 Regular
Interests (other than the Class LTII1-3AX Interest and Class LTII1-4AX Interest)
allocated as follows:
(i) 50%
of
such increase shall be allocated among the REMIC II-1II Marker Classes and
the
Class LTII1-XII Interest as follows:
(A) first,
to each
of the REMIC II-1II Marker Classes ending with the designation “B” so that its
principal balance is as close as possible to .0005% of the aggregate Schedule
Principal Balance of the Mortgage Loans in the related Mortgage
Pool;
(B) second,
to each
of the REMIC II-1II Marker Classes ending with the designation “A”, so that its
principal balance is as close as possible to .0005% of the excess of (x) the
aggregate Scheduled Principal Balance of the Mortgage Loans in the related
Mortgage Pool over (y) the aggregate principal amounts of the Classes of related
Senior Certificates after giving effect to distributions and allocations on
such
Distribution Date (provided that the REMIC II-1 Subordinated Balance Ratio
is
maintained); and
(C) third,
to the
Class LTII1-XII Interest all remaining amounts; and
(ii) 50%
of
such increase shall be allocated among the REMIC II-1I Marker Classes and the
Class LTII1-XI Interest as follows:
(A) first,
to each
of the REMIC II-1I Marker Classes so that the principal balance of each such
interest is as close as possible to 25% of the principal balance of its
Corresponding Class; and
(B) second,
to the
Class LTII1-XI Interest so that the principal balance of such interest is as
close as possible to the sum of (x) 25% of the aggregate Scheduled Principal
Balance of the Pool 3 and Pool 4 Mortgage Loans and (y) 25% of the Pool 3-4
Overcollateralization Amount.
REMIC
II-2:
All
payments received by REMIC II-2 shall be paid to the REMIC II-2 Regular
Interests until the principal balance of all such interests have been reduced
to
zero and any losses allocated to such interests have been reimbursed. Any excess
amounts shall be distributed to the Class LTII2-R Interest.
On
each
Distribution Date, distributions shall be made in respect of each of the Class
LTII2-3AX Interest and the Class LTII2-4AX Interest in an amount equal to the
amount of distributions made in respect of the regular interest ending with
the
same designation that is issued by the REMIC that is one tier lower. Then,
from
all remaining amounts related to Pool 3 and Pool 4 to be paid and allocated
on
each Distribution Date,
-257-
(i) interest
shortfalls with respect to the Mortgage Loans in Pool 3 and Pool 4 (other than
interest shortfalls attributable to Negative Amortization) shall be allocated
to
the REMIC II-2 Regular Interests (other than the Class LTII2-3AX Interest and
Class LTII2-4AX Interest) pro rata based on interest otherwise accrued
thereon;
(ii) the
principal balance of each REMIC II-2 Regular Interest (other than the Class
LTII2-3AX Interest and Class LTII2-4AX Interest) shall be increased by the
amount of interest accrued thereon (net of interest shortfalls allocated thereto
pursuant to the immediately preceding clause (i));
(iii) cash
received by REMIC II-2 with respect to the REMIC II-1 Regular Interests shall
be
distributed to, and losses with respect to the Mortgage Loans in Pool 3 and
Pool
4 shall be allocated, first, to each REMIC II-2 Regular Interests (other than
the Class LTII2-XII Interest), in reduction of its principal balance so that
its
principal balance is a close as possible to the principal balance of its Related
Certificates, and second, to the Class LTII2-XII Interest in reduction of its
principal balance so that its principal balance is as close as possible to
the
Pool 3-4 Overcollateralization Amount.
If
on any
Distribution Date there is an increase in the Certificate Principal Amount
of
any Group II Certificate as a result of the proviso relating to Subsequent
Recoveries in the definition of Certificate Principal Amount, then there shall
be a corresponding increase in the principal amount of the REMIC II-2 Regular
Interests (other than the Class LTII2-3AX Interest and Class LTII2-4AX Interest)
allocated as follows:
first,
to each
of the REMIC II-2 Regular Interests (other than the Class LTII2-XII Interest
and
other than the Class LTII2-3AX Interest and Class LTII2-4AX Interest) so that
the principal balance of each such interest is as close as possible to the
principal balances of its Related Certificates; and
second,
to the
Class LTII2-XII Interest so that the principal balance of such interest is
as
close as possible to the Pool 3-4 Overcollateralization Amount.
REMIC
II-3:
All
payments received by REMIC II-3 shall be paid to the REMIC II-3 Regular
Interests until the principal balance of all such interests have been reduced
to
zero and any losses allocated to such interests have been reimbursed. Any excess
amounts shall be distributed to the Class LTII3-R Interest.
On
each
Distribution Date, distributions and allocations shall be made in respect of
each Class of REMIC II-3 Regular Interests (other than the Class LTII3-4A1
Interest and the Class LTII3-4A1X Interest) in an amount equal to the amount
of
distributions and allocations made in respect of the regular interest ending
with the same designation that is issued by the REMIC that is one tier
lower.
-258-
On
each
Distribution Date,
(i) interest
shortfalls allocated to the Class LTII2-4A1 Interest (other than interest
shortfalls attributable to Negative Amortization) shall be allocated to the
Class LTII3-4A1 Interest and the Class LTII3-4A1X Interest pro rata based on
interest otherwise accrued thereon for such Distribution Date;
(ii) the
principal balance of each of the Class LTII3-4A1 Interest and the Class
LTII3-4A1X Interest shall be increased by the amount of interest accrued thereon
(net of interest shortfalls allocated thereto pursuant to the immediately
preceding clause (i)); and
(iii) cash
received by REMIC II-3 with respect to the Class LTII2-4A1 Interest shall be
distributed to, and losses allocated to the Class LTII2-4A1 Interest in
reduction of its principal balance shall be allocated (x) first, to the Class
LTII3-4A1 Interest in reduction of its principal balance so that its principal
balance is as close as possible to 50% of the principal balance of the Class
4-A1A Certificates (computed as if all of the Class 4-A1 Certificates were
exchanged for the Combination Group that includes such Exchangeable Class and
by
disregarding the effect of any Deferred Interest Cap Agreement) and (y) second,
to the Class LTII3-4A1X Interest in reduction of its principal balance so that
its principal balance is as close as possible to the excess of (1) the principal
balance of the Class LTII2-4A1 Interest over (2) the principal balance of the
Class LTII3-4A1 Interest.
If
on any
Distribution Date there is an increase in the principal amount of the Class
4-A1
Underlying Interest as a result of Subsequent Recoveries, then there shall
be a
corresponding increase in principal amounts allocated as follows:
first,
to the
Class LTII3-4A1 Interest so that the principal balance of such interest is
as
close as possible to 50% of the principal balance of the Class 4-A1A
Certificates (computed as if all of the Class 4-A1 Certificates were exchanged
for the Combination Group that includes such Exchangeable Class and by
disregarding the effect of any Deferred Interest Cap Agreement);
and
second,
to the
Class LTII3-4A1X Interest so that the principal balance of such interest is
as
close as possible to the excess of (1) the principal balance of the Class
LTII2-4A1 Interest over (2) the principal balance of the Class LTII3-4A1
Interest.
REMIC
II-4:
All
payments received by REMIC II-4 shall be paid to the REMIC II-4 Regular
Interests until the principal balance of all such interests have been reduced
to
zero and any losses allocated to such interests have been reimbursed. Any excess
amounts shall be distributed to the Class LTII4-R Interest.
On
each
Distribution Date, distributions and allocations shall be made in respect of
each Class of REMIC II-4 Regular Interests (other than the Class LTII4-4A1A
Interest, the Class LTII4-4A1AX Interest and the Class LTII4-4A1IA Interest)
in
an amount equal to the amount of distributions and allocations made in respect
of the regular interest ending with the same designation that is issued by
the
REMIC that is one tier lower.
-259-
On
each
Distribution Date,
(i) interest
shortfalls allocated to the Class LTII3-4A1 Interest and Class LTII3-4A1X
Interest (other than interest shortfalls attributable to Negative Amortization)
shall be allocated to the Class LTII4-4A1A Interest, the Class LTII4-4A1AX
Interest and the Class LTII4-4A1IA Interest pro rata based on interest otherwise
accrued thereon for such Distribution Date;
(ii) the
principal balance of each of the Class LTII4-4A1A Interest, the Class
LTII4-4A1AX Interest and the Class LTII4-4A1IA Interest shall be increased
by
the amount of interest accrued thereon (net of interest shortfalls allocated
thereto pursuant to the immediately preceding clause (i)); and
(iii) cash
received by REMIC II-4 with respect to the Class LTII3-4A1 Interest and Class
LTII3-4A1X Interest shall be distributed to, and losses allocated to such REMIC
regular interests in reduction of their principal balance shall be allocated
(x)
first, to the Class LTII4-4A1A Interest in reduction of its principal balance
so
that its principal balance is as close as possible to 50% of the principal
balance of the Class 4-A1B Certificates (computed as if all of the Class 4-A1
Certificates were exchanged for the Combination Group that includes such
Exchangeable Class and by disregarding the effect of any Deferred Interest
Cap
Agreement), (y) second, to the Class LTII4-4A1AX Interest in reduction of its
principal balance so that its principal balance is as close as possible to
the
excess of (1) the aggregate principal balance of the Class LTII3-4A1 Interest
and the Class LTII3-4A1X Interest minus the principal balance of the Class
4-A1IA Certificates (computed as if all of the Class 4-A1 Certificates were
exchanged for the Combination Group that includes such Exchangeable Class and
by
disregarding the effect of any Deferred Interest Cap Agreement) over (2) the
principal balance of the Class LTII4-4A1A Interest and (z) third, to the Class
LTII4-4A1IA Interest in reduction of its principal balance so that its principal
balance is as close as possible to its principal amount immediately prior to
such Distribution Date.
If
on any
Distribution Date there is an increase in the principal amount of the Class
4-A1
Underlying Interest as a result of Subsequent Recoveries, then there shall
be a
corresponding increase in principal amounts allocated as follows:
first,
to the
Class LTII4-4A1A Interest so that the principal balance of such interest is
as
close as possible to 50% of the principal balance of the Class 4-A1B
Certificates (computed as if all of the Class 4-A1 Certificates were exchanged
for the Combination Group that includes such Exchangeable Class and by
disregarding the effect of any Deferred Interest Cap Agreement);
second,
to the
Class LTII4-4A1AX Interest so that the principal balance of such interest is
as
close as possible to the excess of (1) the aggregate principal balance of the
Class LTII3-4A1 Interest and the Class LTII3-4A1X Interest minus the principal
balance of the Class 4-A1IA Certificates (computed as if all of the Class 4-A1
Certificates were exchanged for the Combination Group that includes such
Exchangeable Class and by disregarding the effect of any Deferred Interest
Cap
Agreement) over (2) the principal balance of the Class LTII4-4A1A Interest;
and
-260-
third,
to the
Class LTII4-4A1IA Interest so that its principal balance is as close as possible
to the principal amount of the REMIC II-11 Regular Interest ending with the
same
designation.
REMIC
II-5:
All
payments received by REMIC II-5 shall be paid to the REMIC II-5 Regular
Interests until the principal balance of all such interests have been reduced
to
zero and any losses allocated to such interests have been reimbursed. Any excess
amounts shall be distributed to the Class LTII5-R Interest.
On
each
Distribution Date, distributions and allocations shall be made in respect of
each Class of REMIC II-5 Regular Interests (other than the Class LTII5-4A1B
Interest, the Class LTII5-4A1BX Interest and the Class LTII5-4A1IB Interest)
in
an amount equal to the amount of distributions and allocations made in respect
of the regular interest ending with the same designation that is issued by
the
REMIC that is one tier lower.
On
each
Distribution Date,
(i) interest
shortfalls allocated to the Class LTII4-4A1A Interest and Class LTII4-4A1AX
Interest (other than interest shortfalls attributable to Negative Amortization)
shall be allocated to the Class LTII5-4A1B Interest, the Class LTII5-4A1BX
Interest and the Class LTII5-4A1IB Interest pro rata based on interest otherwise
accrued thereon for such Distribution Date;
(ii) the
principal balance of each of the Class LTII5-4A1B Interest, the Class
LTII5-4A1BX Interest and the Class LTII5-4A1IB Interest shall be increased
by
the amount of interest accrued thereon (net of interest shortfalls allocated
thereto pursuant to the immediately preceding clause (i)); and
(iii) cash
received by REMIC II-5 with respect to the Class LTII4-4A1A Interest and Class
LTII4-4A1AX Interest shall be distributed to, and losses allocated to such
REMIC
regular interests in reduction of their principal balance shall be allocated
(x)
first, to the Class LTII5-4A1B Interest in reduction of its principal balance
so
that its principal balance is as close as possible to 50% of the principal
balance of the Class 4-A1C Certificates (computed as if all of the Class 4-A1
Certificates were exchanged for the Combination Group that includes such
Exchangeable Class and by disregarding the effect of any Deferred Interest
Cap
Agreement), (y) second, to the Class LTII5-4A1BX Interest in reduction of its
principal balance so that its principal balance is as close as possible to
the
excess of (1) the aggregate principal balance of the Class LTII4-4A1A Interest
and the Class LTII4-4A1AX Interest minus the principal balance of the Class
4-A1IB Certificates (computed as if all of the Class 4-A1 Certificates were
exchanged for the Combination Group that includes such Exchangeable Class and
by
disregarding the effect of any Deferred Interest Cap Agreement) over (2) the
principal balance of the Class LTII5-4A1B Interest and (z) third, to the Class
LTII5-4A1IB Interest in reduction of its principal balance so that its principal
balance is as close as possible to its principal amount immediately prior to
such Distribution Date.
-261-
If
on any
Distribution Date there is an increase in the principal amount of the Class
4-A1
Underlying Interest as a result of Subsequent Recoveries, then there shall
be a
corresponding increase in principal amounts allocated as follows:
first,
to the
Class LTII5-4A1B Interest so that the principal balance of such interest is
as
close as possible to 50% of the principal balance of the Class 4-A1C
Certificates (computed as if all of the Class 4-A1 Certificates were exchanged
for the Combination Group that includes such Exchangeable Class and by
disregarding the effect of any Deferred Interest Cap Agreement);
second,
to the
Class LTII5-4A1BX Interest so that the principal balance of such interest is
as
close as possible to the excess of (1) the aggregate principal balance of the
Class LTII4-4A1A Interest and the Class LTII4-4A1AX Interest minus the principal
balance of the Class 4-A1IB Certificates (computed as if all of the Class 4-A1
Certificates were exchanged for the Combination Group that includes such
Exchangeable Class and by disregarding the effect of any Deferred Interest
Cap
Agreement) over (2) the principal balance of the Class LTII5-4A1B Interest;
and
third,
to the
Class LTII5-4A1IB Interest so that its principal balance is as close as possible
to the principal amount of the REMIC II-11 Regular Interest ending with the
same
designation.
REMIC
II-6:
All
payments received by REMIC II-6 shall be paid to the REMIC II-6 Regular
Interests until the principal balance of all such interests have been reduced
to
zero and any losses allocated to such interests have been reimbursed. Any excess
amounts shall be distributed to the Class LTII6-R Interest.
On
each
Distribution Date, distributions and allocations shall be made in respect of
each Class of REMIC II-6 Regular Interests (other than the Class LTII6-4A1C
Interest, the Class LTII6-4A1CX Interest and the Class LTII6-4A1IC Interest)
in
an amount equal to the amount of distributions and allocations made in respect
of the regular interest ending with the same designation that is issued by
the
REMIC that is one tier lower.
On
each
Distribution Date,
(i) interest
shortfalls allocated to the Class LTII5-4A1B Interest and Class LTII5-4A1BX
Interest (other than interest shortfalls attributable to Negative Amortization)
shall be allocated to the Class LTII6-4A1C Interest, the Class LTII6-4A1CX
Interest and the Class LTII6-4A1IC Interest pro rata based on interest otherwise
accrued thereon for such Distribution Date;
(ii) the
principal balance of each of the Class LTII6-4A1C Interest, the Class
LTII6-4A1CX Interest and the Class LTII6-4A1IC Interest shall be increased
by
the amount of interest accrued thereon (net of interest shortfalls allocated
thereto pursuant to the immediately preceding clause (i)); and
(iii) cash
received by REMIC II-6 with respect to the Class LTII5-4A1B Interest and Class
LTII5-4A1BX Interest shall be distributed to, and losses allocated to such
REMIC
regular interests in reduction of their principal balance shall be allocated
(x)
first, to the Class LTII6-4A1C Interest in reduction of its principal balance
so
that its principal balance is as close as possible to 50% of the principal
balance of the Class 4-A1D Certificates (computed as if all of the Class 4-A1
Certificates were exchanged for the Combination Group that includes such
Exchangeable Class and by disregarding the effect of any Deferred Interest
Cap
Agreement), (y) second, to the Class LTII6-4A1CX Interest in reduction of its
principal balance so that its principal balance is as close as possible to
the
excess of (1) the aggregate principal balance of the Class LTII5-4A1B Interest
and the Class LTII5-4A1BX Interest minus the principal balance of the Class
4-A1IC Certificates (computed as if all of the Class 4-A1 Certificates were
exchanged for the Combination Group that includes such Exchangeable Class and
by
disregarding the effect of any Deferred Interest Cap Agreement) over (2) the
principal balance of the Class LTII6-4A1C Interest and (z) third, to the Class
LTII6-4A1IC Interest in reduction of its principal balance so that its principal
balance is as close as possible to its principal amount immediately prior to
such Distribution Date.
-262-
If
on any
Distribution Date there is an increase in the principal amount of the Class
4-A1
Underlying Interest as a result of Subsequent Recoveries, then there shall
be a
corresponding increase in principal amounts allocated as follows:
first,
to the
Class LTII6-4A1C Interest so that the principal balance of such interest is
as
close as possible to 50% of the principal balance of the Class 4-A1D
Certificates (computed as if all of the Class 4-A1 Certificates were exchanged
for the Combination Group that includes such Exchangeable Class and by
disregarding the effect of any Deferred Interest Cap Agreement);
second,
to the
Class LTII6-4A1CX Interest so that the principal balance of such interest is
as
close as possible to the excess of (1) the aggregate principal balance of the
Class LTII5-4A1B Interest and the Class LTII5-4A1BX Interest minus the principal
balance of the Class 4-A1IC Certificates (computed as if all of the Class 4-A1
Certificates were exchanged for the Combination Group that includes such
Exchangeable Class and by disregarding the effect of any Deferred Interest
Cap
Agreement) over (2) the principal balance of the Class LTII6-4A1C Interest;
and
third,
to the
Class LTII6-4A1IC Interest so that its principal balance is as close as possible
to the principal amount of the REMIC II-11 Regular Interest ending with the
same
designation.
REMIC
II-7:
All
payments received by REMIC II-7 shall be paid to the REMIC II-7 Regular
Interests until the principal balance of all such interests have been reduced
to
zero and any losses allocated to such interests have been reimbursed. Any excess
amounts shall be distributed to the Class LTII7-R Interest.
On
each
Distribution Date, distributions and allocations shall be made in respect of
each Class of REMIC II-7 Regular Interests (other than the Class LTII7-4A1D
Interest, the Class LTII7-4A1DX Interest and the Class LTII7-4A1ID Interest)
in
an amount equal to the amount of distributions and allocations made in respect
of the regular interest ending with the same designation that is issued by
the
REMIC that is one tier lower.
-263-
On
each
Distribution Date,
(i) interest
shortfalls allocated to the Class LTII6-4A1C Interest and Class LTII6-4A1CX
Interest (other than interest shortfalls attributable to Negative Amortization)
shall be allocated to the Class LTII7-4A1D Interest, the Class LTII7-4A1DX
Interest and the Class LTII7-4A1ID Interest pro rata based on interest otherwise
accrued thereon for such Distribution Date;
(ii) the
principal balance of each of the Class LTII7-4A1D Interest, the Class
LTII7-4A1DX Interest and the Class LTII7-4A1ID Interest shall be increased
by
the amount of interest accrued thereon (net of interest shortfalls allocated
thereto pursuant to the immediately preceding clause (i)); and
(iii) cash
received by REMIC II-7 with respect to the Class LTII6-4A1C Interest and Class
LTII6-4A1CX Interest shall be distributed to, and losses allocated to such
REMIC
regular interests in reduction of their principal balance shall be allocated
(x)
first, to the Class LTII7-4A1D Interest in reduction of its principal balance
so
that its principal balance is as close as possible to 50% of the principal
balance of the Class 4-A1E Certificates (computed as if all of the Class 4-A1
Certificates were exchanged for the Combination Group that includes such
Exchangeable Class and by disregarding the effect of any Deferred Interest
Cap
Agreement), (y) second, to the Class LTII7-4A1DX Interest in reduction of its
principal balance so that its principal balance is as close as possible to
the
excess of (1) the aggregate principal balance of the Class LTII6-4A1C Interest
and the Class LTII6-4A1CX Interest minus the principal balance of the Class
4-A1ID Certificates (computed as if all of the Class 4-A1 Certificates were
exchanged for the Combination Group that includes such Exchangeable Class and
by
disregarding the effect of any Deferred Interest Cap Agreement) over (2) the
principal balance of the Class LTII7-4A1D Interest and (z) third, to the Class
LTII7-4A1ID Interest in reduction of its principal balance so that its principal
balance is as close as possible to its principal amount immediately prior to
such Distribution Date.
If
on any
Distribution Date there is an increase in the principal amount of the Class
4-A1
Underlying Interest as a result of Subsequent Recoveries, then there shall
be a
corresponding increase in principal amounts allocated as follows:
first,
to the
Class LTII7-4A1D Interest so that the principal balance of such interest is
as
close as possible to 50% of the principal balance of the Class 4-A1E
Certificates (computed as if all of the Class 4-A1 Certificates were exchanged
for the Combination Group that includes such Exchangeable Class and by
disregarding the effect of any Deferred Interest Cap Agreement);
second,
to the
Class LTII7-4A1DX Interest so that the principal balance of such interest is
as
close as possible to the excess of (1) the aggregate principal balance of the
Class LTII6-4A1C Interest and the Class LTII6-4A1CX Interest minus the principal
balance of the Class 4-A1ID Certificates (computed as if all of the Class 4-A1
Certificates were exchanged for the Combination Group that includes such
Exchangeable Class and by disregarding the effect of any Deferred Interest
Cap
Agreement) over (2) the principal balance of the Class LTII7-4A1D Interest;
and
-264-
third,
to the
Class LTII7-4A1ID Interest so that its principal balance is as close as possible
to the principal amount of the REMIC II-11 Regular Interest ending with the
same
designation.
REMIC
II-8:
All
payments received by REMIC II-8 shall be paid to the REMIC II-8 Regular
Interests until the principal balance of all such interests have been reduced
to
zero and any losses allocated to such interests have been reimbursed. Any excess
amounts shall be distributed to the Class LTII8-R Interest.
On
each
Distribution Date, distributions and allocations shall be made in respect of
each Class of REMIC II-8 Regular Interests (other than the Class LTII8-4A1E
Interest, the Class LTII8-4A1EX Interest and the Class LTII8-4A1IE Interest)
in
an amount equal to the amount of distributions and allocations made in respect
of the regular interest ending with the same designation that is issued by
the
REMIC that is one tier lower.
On
each
Distribution Date,
(i) interest
shortfalls allocated to the Class LTII7-4A1D Interest and Class LTII7-4A1DX
Interest (other than interest shortfalls attributable to Negative Amortization)
shall be allocated to the Class LTII8-4A1E Interest, the Class LTII8-4A1EX
Interest and the Class LTII8-4A1IE Interest pro rata based on interest otherwise
accrued thereon for such Distribution Date;
(ii) the
principal balance of each of the Class LTII8-4A1E Interest, the Class
LTII8-4A1EX Interest and the Class LTII8-4A1IE Interest shall be increased
by
the amount of interest accrued thereon (net of interest shortfalls allocated
thereto pursuant to the immediately preceding clause (i)); and
(iii) cash
received by REMIC II-8 with respect to the Class LTII7-4A1D Interest and Class
LTII7-4A1DX Interest shall be distributed to, and losses allocated to such
REMIC
regular interests in reduction of their principal balance shall be allocated
(x)
first, to the Class LTII8-4A1E Interest in reduction of its principal balance
so
that its principal balance is as close as possible to 50% of the principal
balance of the Class 4-A1F Certificates (computed as if all of the Class 4-A1
Certificates were exchanged for the Combination Group that includes such
Exchangeable Class and by disregarding the effect of any Deferred Interest
Cap
Agreement), (y) second, to the Class LTII8-4A1EX Interest in reduction of its
principal balance so that its principal balance is as close as possible to
the
excess of (1) the aggregate principal balance of the Class LTII7-4A1D Interest
and the Class LTII7-4A1DX Interest minus the principal balance of the Class
4-A1IE Certificates (computed as if all of the Class 4-A1 Certificates were
exchanged for the Combination Group that includes such Exchangeable Class and
by
disregarding the effect of any Deferred Interest Cap Agreement) over (2) the
principal balance of the Class LTII8-4A1E Interest and (z) third, to the Class
LTII8-4A1IE Interest in reduction of its principal balance so that its principal
balance is as close as possible to its principal amount immediately prior to
such Distribution Date.
-265-
If
on any
Distribution Date there is an increase in the principal amount of the Class
4-A1
Underlying Interest as a result of Subsequent Recoveries, then there shall
be a
corresponding increase in principal amounts allocated as follows:
first,
to the
Class LTII8-4A1E Interest so that the principal balance of such interest is
as
close as possible to 50% of the principal balance of the Class 4-A1F
Certificates (computed as if all of the Class 4-A1 Certificates were exchanged
for the Combination Group that includes such Exchangeable Class and by
disregarding the effect of any Deferred Interest Cap Agreement);
second,
to the
Class LTII8-4A1EX Interest so that the principal balance of such interest is
as
close as possible to the excess of (1) the aggregate principal balance of the
Class LTII7-4A1D Interest and the Class LTII7-4A1DX Interest minus the principal
balance of the Class 4-A1IE Certificates (computed as if all of the Class 4-A1
Certificates were exchanged for the Combination Group that includes such
Exchangeable Class and by disregarding the effect of any Deferred Interest
Cap
Agreement) over (2) the principal balance of the Class LTII8-4A1E Interest;
and
third,
to the
Class LTII8-4A1IE Interest so that its principal balance is as close as possible
to the principal amount of the REMIC II-11 Regular Interest ending with the
same
designation.
REMIC
II-9:
All
payments received by REMIC II-9 shall be paid to the REMIC II-9 Regular
Interests until the principal balance of all such interests have been reduced
to
zero and any losses allocated to such interests have been reimbursed. Any excess
amounts shall be distributed to the Class LTII9-R Interest.
On
each
Distribution Date, distributions and allocations shall be made in respect of
each Class of REMIC II-9 Regular Interests (other than the Class LTII9-4A1F
Interest, the Class LTII9-4A1FX Interest and the Class LTII9-4A1IF Interest)
in
an amount equal to the amount of distributions and allocations made in respect
of the regular interest ending with the same designation that is issued by
the
REMIC that is one tier lower.
On
each
Distribution Date,
(i) interest
shortfalls allocated to the Class LTII8-4A1E Interest and Class LTII8-4A1EX
Interest (other than interest shortfalls attributable to Negative Amortization)
shall be allocated to the Class LTII9-4A1F Interest, the Class LTII9-4A1FX
Interest and the Class LTII9-4A1IF Interest pro rata based on interest otherwise
accrued thereon for such Distribution Date;
(ii) the
principal balance of each of the Class LTII9-4A1F Interest, the Class
LTII9-4A1FX Interest and the Class LTII9-4A1IF Interest shall be increased
by
the amount of interest accrued thereon (net of interest shortfalls allocated
thereto pursuant to the immediately preceding clause (i)); and
(iii) cash
received by REMIC II-9 with respect to the Class LTII8-4A1E Interest and Class
LTII8-4A1EX Interest shall be distributed to, and losses allocated to such
REMIC
regular interests in reduction of their principal balance shall be allocated
(x)
first, to the Class LTII9-4A1F Interest in reduction of its principal balance
so
that its principal balance is as close as possible to 50% of the principal
balance of the Class 4-A1G Certificates (computed as if all of the Class 4-A1
Certificates were exchanged for the Combination Group that includes such
Exchangeable Class and by disregarding the effect of any Deferred Interest
Cap
Agreement), (y) second, to the Class LTII9-4A1FX Interest in reduction of its
principal balance so that its principal balance is as close as possible to
the
excess of (1) the aggregate principal balance of the Class LTII8-4A1E Interest
and the Class LTII8-4A1EX Interest minus the principal balance of the Class
4-A1IF Certificates (computed as if all of the Class 4-A1 Certificates were
exchanged for the Combination Group that includes such Exchangeable Class and
by
disregarding the effect of any Deferred Interest Cap Agreement) over (2) the
principal balance of the Class LTII9-4A1F Interest and (z) third, to the Class
LTII9-4A1IF Interest in reduction of its principal balance so that its principal
balance is as close as possible to its principal amount immediately prior to
such Distribution Date.
-266-
If
on any
Distribution Date there is an increase in the principal amount of the Class
4-A1
Underlying Interest as a result of Subsequent Recoveries, then there shall
be a
corresponding increase in principal amounts allocated as follows:
first,
to the
Class LTII9-4A1F Interest so that the principal balance of such interest is
as
close as possible to 50% of the principal balance of the Class 4-A1G
Certificates (computed as if all of the Class 4-A1 Certificates were exchanged
for the Combination Group that includes such Exchangeable Class and by
disregarding the effect of any Deferred Interest Cap Agreement);
second,
to the
Class LTII9-4A1FX Interest so that the principal balance of such interest is
as
close as possible to the excess of (1) the aggregate principal balance of the
Class LTII8-4A1E Interest and the Class LTII8-4A1EX Interest minus the principal
balance of the Class 4-A1IF Certificates (computed as if all of the Class 4-A1
Certificates were exchanged for the Combination Group that includes such
Exchangeable Class and by disregarding the effect of any Deferred Interest
Cap
Agreement) over (2) the principal balance of the Class LTII9-4A1F Interest;
and
third,
to the
Class LTII9-4A1IF Interest so that its principal balance is as close as possible
to the principal amount of the REMIC II-11 Regular Interest ending with the
same
designation.
REMIC
II-10:
All
payments received by REMIC II-10 shall be paid to the REMIC II-10 Regular
Interests until the principal balance of all such interests have been reduced
to
zero and any losses allocated to such interests have been reimbursed. Any excess
amounts shall be distributed to the Class LTII10-R Interest.
On
each
Distribution Date, distributions and allocations shall be made in respect of
each Class of REMIC II-10 Regular Interests (other than the Class LTII10-4A1G
Interest, the Class LTII10-4A1GX Interest and the Class LTII10-4A1IG Interest)
in an amount equal to the amount of distributions and allocations made in
respect of the regular interest ending with the same designation that is issued
by the REMIC that is one tier lower.
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On
each
Distribution Date,
(i) interest
shortfalls allocated to the Class LTII9-4A1F Interest and Class LTII9-4A1FX
Interest (other than interest shortfalls attributable to Negative Amortization)
shall be allocated to the Class LTII10-4A1G Interest, the Class LTII10-4A1GX
Interest and the Class LTII10-4A1IG Interest pro rata based on interest
otherwise accrued thereon for such Distribution Date;
(ii) the
principal balance of each of the Class LTII10-4A1G Interest, the Class
LTII10-4A1GX Interest and the Class LTII10-4A1IG Interest shall be increased
by
the amount of interest accrued thereon (net of interest shortfalls allocated
thereto pursuant to the immediately preceding clause (i)); and
(iii) cash
received by REMIC II-10 with respect to the Class LTII9-4A1F Interest and Class
LTII9-4A1FX Interest shall be distributed to, and losses allocated to such
REMIC
regular interests in reduction of their principal balance shall be allocated
(x)
first, to the Class LTII10-4A1G Interest in reduction of its principal balance
so that its principal balance is as close as possible to 50% of the principal
balance of the Class 4-A1H Certificates (computed as if all of the Class 4-A1
Certificates were exchanged for the Combination Group that includes such
Exchangeable Class and by disregarding the effect of any Deferred Interest
Cap
Agreement), (y) second, to the Class LTII10-4A1GX Interest in reduction of
its
principal balance so that its principal balance is as close as possible to
the
excess of (1) the aggregate principal balance of the Class LTII9-4A1F Interest
and the Class LTII9-4A1FX Interest minus the principal balance of the Class
4-A1IG Certificates (computed as if all of the Class 4-A1 Certificates were
exchanged for the Combination Group that includes such Exchangeable Class and
by
disregarding the effect of any Deferred Interest Cap Agreement) over (2) the
principal balance of the Class LTII10-4A1G Interest and (z) third, to the Class
LTII10-4A1IG Interest in reduction of its principal balance so that its
principal balance is as close as possible to its principal amount immediately
prior to such Distribution Date.
If
on any
Distribution Date there is an increase in the principal amount of the Class
4-A1
Underlying Interest as a result of Subsequent Recoveries, then there shall
be a
corresponding increase in principal amounts allocated as follows:
first,
to the
Class LTII10-4A1G Interest so that the principal balance of such interest is
as
close as possible to 50% of the principal balance of the Class 4-A1H
Certificates (computed as if all of the Class 4-A1 Certificates were exchanged
for the Combination Group that includes such Exchangeable Class and by
disregarding the effect of any Deferred Interest Cap Agreement);
second,
to the
Class LTII10-4A1GX Interest so that the principal balance of such interest
is as
close as possible to the excess of (1) the aggregate principal balance of the
Class LTII9-4A1F Interest and the Class LTII9-4A1FX Interest minus the principal
balance of the Class 4-A1IG Certificates (computed as if all of the Class 4-A1
Certificates were exchanged for the Combination Group that includes such
Exchangeable Class and by disregarding the effect of any Deferred Interest
Cap
Agreement) over (2) the principal balance of the Class LTII10-4A1G Interest;
and
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third,
to the
Class LTII10-4A1IG Interest so that its principal balance is as close as
possible to the principal amount of the REMIC II-11 Regular Interest ending
with
the same designation.
REMIC
II-11:
All
payments received by REMIC II-11 shall be paid to the REMIC II-11 Regular
Interests until the principal balance of all such interests have been reduced
to
zero and any losses allocated to such interests have been reimbursed. Any excess
amounts shall be distributed to the Residual II Interest.
On
each
Distribution Date, distributions and allocations shall be made in respect of
each Class of REMIC II-11 Regular Interests (other than the Class LTII11-4A1
Interest and the Class LTII11-4A1IH Interest) in an amount equal to the amount
of distributions and allocations made in respect of the regular interest ending
with the same designation that is issued by the REMIC that is one tier
lower.
On
each
Distribution Date,
(i) interest
shortfalls allocated to the Class LTII10-4A1G Interest and Class LTII10-4A1GX
Interest (other than interest shortfalls attributable to Negative Amortization)
shall be allocated to the Class LTII11-4A1 Interest and the Class LTII11-4A1IH
Interest pro rata based on interest otherwise accrued thereon for such
Distribution Date;
(ii) the
principal balance of each of the Class LTII11-4A1 Interest and the Class
LTII11-4A1IH Interest shall be increased by the amount of interest accrued
thereon (net of interest shortfalls allocated thereto pursuant to the
immediately preceding clause (i)); and
(iii) cash
received by REMIC II-11 with respect to the Class LTII10-4A1G Interest and
Class
LTII10-4A1GX Interest shall be distributed to, and losses allocated to such
REMIC regular interests in reduction of their principal balance shall be
allocated (x) first, to the Class LTII11-4A1 Interest in reduction of its
principal balance so that its principal balance is as close as possible to
the
principal balance of the Class 4-A1H Certificates (computed as if all of the
Class 4-A1 Certificates were exchanged for the Combination Group that includes
such Exchangeable Class and by disregarding the effect of any Deferred Interest
Cap Agreement), and (y) second, to the Class LTII11-4A1IH Interest in reduction
of its principal balance so that its principal balance is as close as possible
to its principal amount immediately prior to such Distribution
Date.
If
on any
Distribution Date there is an increase in the principal amount of the Class
4-A1
Underlying Interest as a result of Subsequent Recoveries, then there shall
be a
corresponding increase in principal amounts allocated as follows:
first,
to the
Class LTII11-4A1 Interest so that the principal balance of such interest is
as
close as possible to the principal balance of the Class 4-A1H Certificates
(computed as if all of the Class 4-A1 Certificates were exchanged for the
Combination Group that includes such Exchangeable Class and by disregarding
the
effect of any Deferred Interest Cap Agreement); and
second,
to the
Class LTII11-4A1IH Interest so that its principal balance is as close as
possible to the portion of the principal amount of the Class 4-A1IH Certificates
that is attributable to the Underlying 4-A1 REMIC Certificate ending with the
same designation (determined as the difference between the relative amounts
distributable on two Exchange Classes or Exchangeable Classes that share the
same Related Underlying REMIC Certificates except for such Underlying 4-A1
REMIC
Certificate) (disregarding amounts treated as paid or received under any
Deferred Interest Cap Agreement and disregarding amounts treated as received
from the Master Servicer as described in Section 10.01(p)).
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(u) Notwithstanding
the priority and sources of payments set forth in Article 5 hereof or otherwise,
the Trustee shall account for all distributions with respect to a Class of
Certificates in amounts that differ from those payable pursuant to the regular
interest or regular interests in REMIC I-2 or REMIC II-11 corresponding to
such
Class as amounts paid or received (as appropriate) pursuant to the interest
rate
cap contracts or notional principal contracts provided for in this Section.
In
no event shall any such amounts be treated as payments with respect to a
“regular interest” in a REMIC within the meaning of Code Section
860G(a)(1).
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Section
10.02. Prohibited
Transactions and Activities.
None of
the Depositor, the Master Servicer or the Trustee shall sell, dispose of, or
substitute for any of the Mortgage Loans, except in a disposition pursuant
to
(i) the foreclosure of a Mortgage Loan, (ii) the bankruptcy of the Trust Fund,
(iii) the termination of the REMIC holding such Mortgage Loan pursuant to
Article VII of this Agreement, (iv) a substitution pursuant to Article II of
this Agreement or (v) a repurchase of Mortgage Loans pursuant to Article II
of
this Agreement, nor acquire any assets for any REMIC, nor sell or dispose of
any
investments in the Certificate Account for gain, nor accept any contributions
to
any REMIC after the Closing Date, unless it has received an Opinion of Counsel
(at the expense of the party causing such sale, disposition, or substitution),
a
copy of which shall be provided to any NIMS Insurer, that such disposition,
acquisition, substitution, or acceptance will not (a) result in an Adverse
REMIC
Event, (b) affect the distribution of interest or principal on the Certificates,
or (c) result in the encumbrance of the assets transferred or assigned to the
Trust Fund (except pursuant to the provisions of this Agreement).
Section
10.03. Indemnification
with Respect to Certain Taxes and Loss of REMIC Status.
Upon
the occurrence of an Adverse REMIC Event due to the negligent performance by
the
Trustee of its duties and obligations set forth herein, the Trustee shall
indemnify the NIMS Insurer, the Holder of the related Residual Certificate
or
the Trust Fund, as applicable, against any and all losses, claims, damages,
liabilities or expenses (“Losses”) resulting from such negligence; provided,
however, that the Trustee shall not be liable for any such Losses attributable
to the action or inaction of the Master Servicer, the Depositor, the Class
X-I,
Class X-II or Class R Certificateholder, as applicable, nor for any such Losses
resulting from misinformation provided by the Holder of such Residual
Certificate on which the Trustee has relied. The foregoing shall not be deemed
to limit or restrict the rights and remedies of the Holder of such Residual
Certificate now or hereafter existing at law or in equity. Notwithstanding
the
foregoing, however, in no event shall the Trustee have any liability pursuant
to
this Section 10.03 (1) for any action or omission that is taken in accordance
with and in compliance with the express terms of, or which is expressly
permitted by the terms of, this Agreement or any Servicing Agreement, (2) for
any Losses other than arising out of a negligent performance by the Trustee
of
its duties and obligations set forth herein, and (3) for any special or
consequential damages to Certificateholders (in addition to payment of principal
and interest on the Certificates).
Section
10.04. REO
Property.
(a) Notwithstanding
any other provision of this Agreement, the Master Servicer, acting on behalf
of
the Trustee hereunder, shall not, except to the extent provided in the
applicable Servicing Agreement, knowingly permit any Servicer to, rent, lease,
or otherwise earn income on behalf of any REMIC with respect to any REO Property
which might cause an Adverse REMIC Event unless the Master Servicer has advised,
or has caused such Servicer to advise, the Trustee in writing to the effect
that, under the REMIC Provisions, such action would not result in an Adverse
REMIC Event.
(b) The
Master Servicer shall cause the applicable Servicer (to the extent provided
in
the related Servicing Agreement) to make reasonable efforts to sell any REO
Property for its fair market value. In any event, however, the Master Servicer
shall, or shall cause the applicable Servicer to, dispose of any REO Property
within three years of its acquisition by the Trust Fund unless the Master
Servicer has received a grant of extension from the Internal Revenue Service
to
the effect that, under the REMIC Provisions, the REMIC may hold REO Property
for
a longer period without causing an Adverse REMIC Event. If the Master Servicer
has received such an extension, then the Master Servicer, acting on the
Trustee’s behalf hereunder, shall, or shall cause the Servicer to, continue to
attempt to sell the REO Property for its fair market value for such period
longer than three years as such extension permits (the “Extended Period”). If
the Master Servicer has not received such an extension and the Master Servicer
or the applicable Servicer, acting on behalf of the Trustee hereunder, is unable
to sell the REO Property within 33 months after its acquisition by the Trust
Fund or if the Master Servicer has received such an extension, and the Master
Servicer or such Servicer is unable to sell the REO Property within the period
ending three months before the close of the Extended Period, the Master Servicer
shall cause such Servicer, before the end of the three year period or the
Extended Period, as applicable, to (i) purchase such REO Property at a price
equal to the REO Property’s fair market value or (ii) auction the REO Property
to the highest bidder (which may be such Servicer) in an auction reasonably
designed to produce a fair price prior to the expiration of the three year
period or the Extended Period, as the case may be.
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ARTICLE
XI.
MISCELLANEOUS
PROVISIONS
Section
11.01. Binding
Nature of Agreement; Assignment.
This
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and permitted assigns.
Section
11.02. Entire
Agreement.
This
Agreement contains the entire agreement and understanding among the parties
hereto with respect to the subject matter hereof, and supersedes all prior
and
contemporaneous agreements, understandings, inducements and conditions, express
or implied, oral or written, of any nature whatsoever with respect to the
subject matter hereof. The express terms hereof control and supersede any course
of performance and/or usage of the trade inconsistent with any of the terms
hereof.
Section
11.03. Amendment.
(a) This
Agreement may be amended from time to time by the Depositor, the Master Servicer
and the Trustee, with the consent of the NIMS Insurer, but without the consent
of the Swap Counterparty (except to the extent that the rights or obligations
of
(1) the Swap Counterparty hereunder or (2) the Swap Counterparty under the
Swap
Agreement (or the ability of the Trustee on behalf of the Supplemental Interest
Trust to perform fully and timely its obligations under the Swap Agreement),
are
affected thereby, in which case prior written consent of the Swap Counterparty
is required) and without notice to or the consent of any of the Holders, (i)
to
cure any ambiguity, (ii) to cause the provisions herein to conform to or be
consistent with or in furtherance of the statements made with respect to the
Certificates, the Trust Fund or this Agreement in any Offering Document, or
to
correct or supplement any provision herein which may be inconsistent with any
other provisions herein or with the provisions of any Servicing Agreement,
(iii)
to
make
any other provisions with respect to matters or questions arising under this
Agreement
or (iv)
to add, delete, or amend any provisions to the extent necessary or desirable
to
comply with any requirements imposed by the Code and the REMIC Provisions.
No
such amendment effected pursuant to the preceding sentence shall, as evidenced
by an Opinion of Counsel, result in an Adverse REMIC Event, nor shall such
amendment effected pursuant to clause (iii) of such sentence adversely affect
in
any material respect the interests of any Holder (without regard to the
Certificate Insurance Policy). Prior to entering into any amendment without
the
consent of Holders pursuant to this paragraph, the Trustee, the Swap
Counterparty and the NIMS Insurer shall be provided with an Opinion of Counsel
addressed to the Trustee, the Swap Counterparty and the NIMS Insurer (at the
expense of the party requesting such amendment) to the effect that such
amendment is permitted under this Section. Any such amendment shall be deemed
not to adversely affect in any material respect any Holder, if the Trustee
and
the NIMS Insurer receive written confirmation from each Rating Agency that
such
amendment will not cause such Rating Agency to reduce the then current rating
assigned to the Certificates (and any Opinion of Counsel requested by the
Trustee in connection with any such amendment may rely expressly on such
confirmation as the basis therefor)(determined in the case of the Guaranteed
Certificates, without regard to the Certificate Insurance Policy).
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(b) This
Agreement may also be amended from time to time by the Depositor, the Master
Servicer, the NIMS Insurer and the Trustee, but without the consent of the
Swap
Counterparty (except to the extent that the rights or obligations of (1) the
Swap Counterparty hereunder or (2) the Swap Counterparty under the Swap
Agreement (or the ability of the Trustee on behalf of the Supplemental Interest
Trust to perform fully and timely its obligations under the Swap Agreement
are
affected thereby, in which case the prior written consent of the Swap
Counterparty is required) with the consent of the Holders of not less than
66
2/3% of the Class Principal Amount or Class Notional Amount (or Percentage
Interest) of each Class of Certificates (other than the Grantor Trust
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; provided, however, that
no
such amendment shall be made unless the Trustee receives an Opinion of Counsel
addressed to the Trustee and the NIMS Insurer, at the expense of the party
requesting the change, that such change will not cause an Adverse REMIC Event;
and provided further, that no such amendment may (i) reduce in any manner the
amount of, or delay the timing of, payments received on Mortgage Loans which
are
required to be distributed on any Certificate, without the consent of the Holder
of such Certificate or (ii) reduce the aforesaid percentages of Class Principal
Amount (or Percentage Interest) of Certificates of each Class, the Holders
of
which are required to consent to any such amendment without the consent of
the
Holders of 100% of the Class Principal Amount or Class Notional Amount (or
Percentage Interest) of each Class of Certificates affected thereby. For
purposes of this paragraph, references to “Holder” or “Holders” shall be deemed
to include, in the case of any Class of Book-Entry Certificates, the related
Certificate Owners.
(c) Promptly
after the execution of any such amendment, the Trustee shall furnish written
notification of the substance of such amendment to each Holder, the NIMS
Insurer, the Depositor, the Swap Counterparty and to the Rating
Agencies.
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(d) It
shall
not be necessary for the consent of Holders under this Section 11.03 to approve
the particular form of any proposed amendment, but it shall be sufficient if
such consent shall approve the substance thereof. The manner of obtaining such
consents and of evidencing the authorization of the execution thereof by Holders
shall be subject to such reasonable regulations as the Trustee may
prescribe.
(e) Notwithstanding
anything to the contrary in any Servicing Agreement, the Trustee shall not
consent to any amendment of any Servicing Agreement unless (i) such amendment
is
effected pursuant to the standards provided in this Section with respect to
amendment of this Agreement and (ii) except for a Permitted Servicing Amendment,
any such amendment pursuant to Section 11.03(a)(iii) shall not be materially
inconsistent with the provisions of such Servicing Agreement.
(f) Notwithstanding
anything to the contrary in this Section 11.03, this Agreement may be amended
from time to time by the Depositor, the Master Servicer and the Trustee to
the
extent necessary, in the judgment of the Depositor and its counsel, to comply
with the Rules, Regulation AB and any related rules and
regulations.
(g) Notwithstanding
the foregoing, the Certificate Insurer’s written consent shall be required (such
consent not to be unreasonably withheld) with respect to any amendment that
might have a material adverse effect in any respect on the rights and interests
of the Certificate Insurer hereunder as reasonably determined by the Depositor;
provided, however, that in no event shall such consent be required for
amendments made pursuant to Section 11.03(a)(iv).
Section
11.04. Voting
Rights.
Except
to
the extent that the consent of all affected Certificateholders is required
pursuant to this Agreement, with respect to any provision of this Agreement
requiring the consent of Certificateholders representing specified percentages
of aggregate outstanding Certificate Principal Amount or Class Notional Amount
(or Percentage Interest), Certificates owned by the Depositor, the Master
Servicer, the Trustee, the Servicer or Affiliates thereof are not to be counted
so long as such Certificates are owned by the Depositor, the Master Servicer,
the Trustee, any Servicer or any Affiliate thereof.
Section
11.05. Provision
of Information.
(a) For
so
long as any of the Certificates of any series or Class are “restricted
securities” within the meaning of Rule 144(a)(3) under the Act, each of the
Depositor, the Master Servicer and the Trustee agree to cooperate with each
other to provide to any Certificateholders, and to any prospective purchaser
of
Certificates designated by such holder, upon the request of such holder or
prospective purchaser, any information required to be provided to such holder
or
prospective purchaser to satisfy the condition set forth in Rule 144A(d)(4)
under the Act. Any reasonable, out-of-pocket expenses incurred by the Trustee
in
providing such information shall be reimbursed by the Depositor.
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(b) The
Trustee shall make available to any person to whom a Prospectus was delivered,
upon the request of such person specifying the document or documents requested,
(i) a copy (excluding exhibits) of any report on Form 8-K, Form 10-D or Form
10-K filed with the Commission pursuant to Section 6.20(c), (d) or (e) and
(ii)
a copy of any other document incorporated by reference in the Prospectus (to
the
extent that the Trustee has such documents in its possession or such documents
are reasonably obtainable by the Trustee). Any reasonable out-of-pocket expenses
incurred by the Trustee in providing copies of such documents shall be
reimbursed by the Depositor.
(c) On
each
Distribution Date, the Trustee shall make available on its website or otherwise
deliver to the Depositor a copy of the report delivered to Certificateholders
pursuant to Section 4.03.
Section
11.06. Governing
Law.
THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE
STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER
THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW) AND THE OBLIGATIONS, RIGHTS
AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
SUCH LAWS.
Section
11.07. Notices.
All
demands, notices and communications hereunder shall be in writing and shall
be
deemed to have been duly given when received by (a) in the case of the
Depositor, Structured Asset Securities Corporation, 000 Xxxxxxx Xxxxxx, 00xx
Xxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: Mortgage Finance, LXS 2007-15N,
(b)
in the case of the Seller, Xxxxxx Brothers Holdings Inc., 000 Xxxxxxx Xxxxxx,
00xx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: Mortgage Finance, LXS 2007-15N,
(c) in the case of the Trustee, U.S. Bank National Association, One Federal
Street, Boston, M.A. 02110, Attention: Corporate Trust Services, (d) in the
case
of the NIMS Insurer, if any, as set forth in the Indenture, (e) in the case
of
the Swap Counterparty, at the address therefore set forth in the Swap Agreement,
(f) in the case of the Master Servicer, Aurora Loan Services LLC, 00000 Xxxx
Xxxxxxx Xxxxx, Xxxxxxxxx, Xxxxxxxx 00000; Attention: Master Servicing, LXS
2007-15N and (g) in the case of the Certificate Insurer, Ambac Assurance
Corporation, Xxx Xxxxx Xxxxxx Xxxxx, 00xx Xxxxx, Xxx Xxxx, Xxx Xxxx, Attention:
Consumer Asset-Backed Securities Group, Xxxxxx XS Trust Mortgage Pass-Through
Certificates, Series 2007-15N, Class 3-A2 and Class 4-A3 Certificates or, as
to
each party such other address as may hereafter be furnished by such party to
the
other parties in writing. All demands, notices and communications to a party
hereunder shall be in writing and shall be deemed to have been duly given when
delivered to such party at the relevant address, facsimile number or electronic
mail address set forth above or at such other address, facsimile number or
electronic mail address as such party may designate from time to time by written
notice in accordance with this Section 11.07.
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Section
11.08. Severability
of Provisions
If
any
one or more of the covenants, agreements, provisions or terms of this Agreement
shall be for any reason whatsoever held invalid, then such covenants,
agreements, provisions or terms shall be deemed severable from the remaining
covenants, agreements, provisions or terms of this Agreement and shall in no
way
affect the validity or enforceability of the other provisions of this Agreement
or of the Certificates or the rights of the Holders thereof.
Section
11.09. Indulgences;
No Waivers
Neither
the failure nor any delay on the part of a party to exercise any right, remedy,
power or privilege under this Agreement shall operate as a waiver thereof,
nor
shall any single or partial exercise of any right, remedy, power or privilege
preclude any other or further exercise of the same or of any other right,
remedy, power or privilege, nor shall any waiver of any right, remedy, power
or
privilege with respect to any occurrence be construed as a waiver of such right,
remedy, power or privilege with respect to any other occurrence. No waiver
shall
be effective unless it is in writing and is signed by the party asserted to
have
granted such waiver.
Section
11.10. Headings
Not To Affect Interpretation
The
headings contained in this Agreement are for convenience of reference only,
and
they shall not be used in the interpretation hereof.
Section
11.11. Benefits
of Agreement
Nothing
in this Agreement or in the Certificates, express or implied, shall give to
any
Person, other than the parties to this Agreement and their successors hereunder,
the Swap Counterparty and its successors and assigns under the Swap Agreement,
the Holders of the Certificates, any benefit or any legal or equitable right,
power, remedy or claim under this Agreement, except to the extent specified
in
Section 5.08 and in Section 11.16.
Section
11.12. Special
Notices to the Rating Agencies, the Certificate Insurer, the Swap Counterparty
and NIMS Insurer
(a) The
Depositor shall give prompt notice to the Rating Agencies, the Certificate
Insurer, the Swap Counterparty and the NIMS Insurer of the occurrence of any
of
the following events of which it has notice:
(i) any
amendment to this Agreement pursuant to Section 11.03;
(ii) any
Assignment by the Master Servicer of its rights hereunder or delegation of
its
duties hereunder;
(iii) the
occurrence of any Event of Default described in Section 6.14;
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(iv) any
notice of termination given to the Master Servicer pursuant to Section 6.14
and
any resignation of the Master Servicer hereunder;
(v) the
appointment of any successor to any Master Servicer pursuant to Section
6.14;
(vi) the
making of a final payment pursuant to Section 7.02; and
(vii) any
termination of the rights and obligations of any Servicer under any Servicing
Agreement.
(b) All
notices to the Rating Agencies provided for this Section shall be in writing
and
sent by first class mail, telecopy or overnight courier, as
follows:
If
to
Fitch, to:
Fitch,
Inc.
0
Xxxxx
Xxxxxx Xxxxx
Xxx
Xxxx,
Xxx Xxxx 00000
If
to
S&P, to:
Standard
& Poor’s
00
Xxxxx
Xxxxxx
Xxx
Xxxx,
Xxx Xxxx 00000
If
to
Moody’s:
Xxxxx’x
Investors Service, Inc.
00
Xxxxxx
Xxxxxx
Xxx
Xxxx,
Xxx Xxxx 00000
(c) The
Trustee shall provide or make available to the Rating Agencies and the NIMS
Insurer reports prepared pursuant to Section 4.03. In addition, the Trustee
shall, at the expense of the Trust Fund, make available to each Rating Agency
such information as such Rating Agency may reasonably request regarding the
Certificates or the Trust Fund, to the extent that such information is
reasonably available to the Trustee.
Section
11.13. Conflicts
To
the
extent that the terms of this Agreement conflict with the terms of any Servicing
Agreement, such Servicing Agreement shall govern unless such provisions shall
adversely affect the Trustee, the Trust Fund or the Certificate Insurer or
the
status of any REMIC created hereunder as a REMIC, provided that nothing in
this
Section 11.13 shall be construed to limit the rights or obligations of the
Master Servicer under Section 9.05 of this Agreement.
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Section
11.14. Counterparts.
This
Agreement may be executed in one or more counterparts, each of which shall
be
deemed to be an original, and all of which together shall constitute one and
the
same instrument.
Section
11.15. Transfer
of Servicing
The
Seller agrees that it shall provide written notice to the Master Servicer,
the
NIMS Insurer, the Certificate Insurer and the Trustee thirty days prior to
any
proposed transfer or assignment by the Seller of its rights under any Servicing
Agreement or of the servicing thereunder from time to time with respect to
any
Mortgage Loan or group of Mortgage Loans, or delegation of its rights or duties
thereunder or any portion thereof to any other Person other than the initial
Servicer under such Servicing Agreement; provided, however, that the Seller
shall not be required to provide prior notice of any transfer of servicing
that
occurs within three months following the Closing Date to an entity that is
a
Servicer on the Closing Date. In addition, the ability of the Seller to transfer
or assign its rights and delegate its duties under a Servicing Agreement or
to
transfer the servicing thereunder, from time to time with respect to any
Mortgage Loan or group of Mortgage Loans, to a successor servicer shall be
subject to the following conditions:
(i) Satisfaction
of the conditions to such transfer as set forth in the Servicing Agreement
including, without limitation, receipt of written consent of the Master Servicer
to such transfer;
(ii) Receipt
of the written consent of any NIMS Insurer, such consent not to be unreasonably
withheld;
(iii) Such
successor servicer must be qualified to service loans for Xxxxxx Xxx or Xxxxxxx
Mac, and must be a member in good standing of MERS;
(iv) Such
successor servicer must satisfy the seller/servicer eligibility standards in
the
applicable Servicing Agreement, exclusive of any experience in mortgage loan
origination and must be reasonably acceptable to the Master Servicer, whose
approval shall not be unreasonably withheld;
(v) Such
successor servicer must execute and deliver to the Trustee and the Master
Servicer an agreement, in form and substance reasonably satisfactory to the
Trustee and the Master Servicer, that contains an assumption by such successor
servicer of the due and punctual performance and observance of each covenant
and
condition to be performed and observed by the applicable Servicer under the
related Servicing Agreement or such successor servicer shall execute and deliver
to the Trustee and the Master Servicer a servicing agreement which contains
customary and reasonable servicing provisions and which will not cause either
Rating Agency to qualify, withdraw or downgrade the then-current rating of
any
of the Certificates or, (i) in the case of a transfer of servicing to a party
that is already a Servicer pursuant to this Agreement, an agreement to add
the
related Mortgage Loans to the Servicing Agreement already in effect with such
Servicer and (ii) in the case of a transfer of servicing to a Special Servicer
pursuant to Section 9.32 herein, a special servicing agreement in the form
of
that attached to the applicable Servicing Agreement;
-278-
(vi) If
the
successor servicer is not a Servicer of Mortgage Loans at the time of the
transfer, there must be delivered to the Trustee and the Master Servicer a
letter from each Rating Agency to the effect that such transfer of servicing
will not result in a qualification, withdrawal or downgrade of the then-current
rating of any of the Certificates (determined in the case of Guaranteed
Certificates, without regard to the Certificate Insurance Policy);
and
(vii) The
Seller shall, at its cost and expense, take such steps, or cause the
transferring Servicer to take such steps, as may be necessary or appropriate
to
effectuate and evidence the transfer of the servicing of the specified Mortgage
Loans to such successor or replacement servicer, including, but not limited
to,
the following: (A) to the extent required by the terms of the Mortgage Loans
and
by applicable federal and state laws and regulations, the Seller shall cause
the
prior Servicer to timely mail to each obligor under a Mortgage Loan any required
notices or disclosures describing the transfer of servicing of the Mortgage
Loans to the successor or replacement servicer; (B) prior to the effective
date
of such transfer of servicing, the Seller shall cause the prior Servicer to
transmit to any related insurer notification of such transfer of servicing;
(C)
on or prior to the effective date of such transfer of servicing, the Seller
shall cause the prior Servicer to deliver to the successor or replacement
servicer all Mortgage Loan Documents and any related records or materials;
(D)
on or prior to the effective date of such transfer of servicing, the Seller
shall cause the prior Servicer to transfer to the successor or replacement
servicer, or, if such transfer occurs after a Servicer Remittance Date but
before the next succeeding Deposit Date, to the Trustee, all funds held by
the
prior Servicer in respect of the Mortgage Loans; (E) on or prior to the
effective date of such transfer of servicing, the Seller shall cause the prior
Servicer to, after the effective date of the transfer of servicing to the
successor or replacement servicer, continue to forward to such successor or
replacement servicer, within one Business Day of receipt, the amount of any
payments or other recoveries received by the prior Servicer, and to notify
the
successor or replacement servicer of the source and proper application of each
such payment or recovery; and (F) the Seller shall cause the prior Servicer
to,
after the effective date of transfer of servicing to the successor or
replacement servicer, continue to cooperate with the successor or replacement
servicer to facilitate such transfer in such manner and to such extent as the
successor or replacement servicer may reasonably request. Notwithstanding the
foregoing, the prior Servicer shall be obligated to perform the items listed
above to the extent provided in the applicable Servicing Agreement.
Section
11.16. Third
Party Rights
The
NIMS
Insurer shall be deemed a third-party beneficiary of this Agreement to the
same
extent as if it were a party hereto, and shall have the right to enforce the
provisions of this Agreement.
-279-
Section
11.17. Matters
Relating to the Certificate Insurance Policy
(a) All
notices, statements, reports, certificates or opinions required by this
Agreement to be sent by any other party hereto to the Class 3-A2
Certificateholders or to the Class 4-A3 Certificateholders shall also be sent
by
the Trustee to the Certificate Insurer at the following address:
Ambac
Assurance Corporation
Xxx
Xxxxx
Xxxxxx Xxxxx, 00xx Xxxxx
Xxx
Xxxx,
Xxx Xxxx 00000
Attention:
Consumer Asset-Backed Securities Group
Re: Xxxxxx
XS
Trust Mortgage Pass-Through Certificates, Series 2007-15N,
Class
3-A2 and Class 4-A3 Certificates
or
such
other address as the Certificate Insurer may hereafter furnish to the Depositor
and the Trustee.
(b) Notwithstanding
any provision to the contrary, the parties to this Agreement agree that it
is
appropriate, in furtherance of the interest of such parties as set forth herein,
the Certificate Insurer receive the benefit of Sections 4.03, 5.02, 5.13, 9.14,
9.31, 11.03, 11.12 and this Section 11.17 as an intended third party beneficiary
of this Agreement to the extent of such provisions.
(c) No
purchase of the property of the Trust Fund pursuant to Section 7.01(b) shall
occur if such purchase would result in a draw on the Certificate Insurance
Policy, unless the Certificate Insurer has consented to such
purchase.
(d) All
references herein to the rating of the Certificates shall be without regard
to
the Certificate Insurance Policy.
[SIGNATURE
PAGE IMMEDIATELY FOLLOWS]
-280-
IN
WITNESS WHEREOF, the Depositor, the Trustee and the Master Servicer have caused
their names to be signed hereto by their respective officers hereunto duly
authorized as of the day and year first above written.
|
STRUCTURED
ASSET SECURITIES CORPORATION, as Depositor
|
||
| |
|
|
| By: | ||
|
Name:
Xxxxxxx X. Xxxxxxxx
|
||
|
Title:
Senior Vice President
|
||
|
U.S.
BANK NATIONAL ASSOCIATION,
not
in its individual capacity, but solely as
Trustee
|
||
| |
|
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| By: | ||
|
Name:
|
||
|
Title:
|
||
|
AURORA
LOAN SERVICES LLC,
as
Master Servicer
|
||
| |
|
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| By: | ||
|
Name:
Xxxxxxx Xxxx
|
||
|
Title:
Vice President
|
||
|
Accepted
and agreed to by:
|
||||
|
XXXXXX
BROTHERS HOLDINGS INC.
|
||||
| By: | ||||
|
Name:
Xxxxx Xxxxxxx
|
||||
|
Title:
Authorized Signatory
|
||||
EXHIBIT
A
FORMS
OF
CERTIFICATES
[Intentionally
Omitted]
X-0
XXXXXXX
X-0
FORM
OF
INITIAL CERTIFICATION
Date
U.S.
Bank
National Association
One
Federal Street
Boston,
M.A. 02110
Attention:
Corporate Trust Services
Aurora
Loan Services LLC, as Master Servicer
00000
Xxxx Xxxxxxx Xxxxx
Xxxxxxxxx,
Xxxxxxxx 00000
Structured
Asset Securities Corporation, as Depositor
000
Xxxxxxx Xxxxxx, 00xx Xxxxx
Xxx
Xxxx,
Xxx Xxxx 00000
Attention:
Mortgage Finance, LXS 2007-15N
[NIMS
Insurer, if applicable]
|
Re:
|
Trust
Agreement dated as of July 1, 2007 (the “Trust Agreement”), by and among
Structured Asset Securities Corporation, as Depositor, Aurora Loan
Services LLC, as Master Servicer and U.S. Bank National Association,
as
Trustee with respect to Xxxxxx XS Trust Mortgage Pass-Through
Certificates, Series 2007-15N
|
Ladies
and Gentlemen:
In
accordance with Section 2.02(a) of the Trust Agreement, subject to review of
the
contents thereof, the undersigned, as Custodian, hereby certifies that it has
received the documents listed in Section 2.01(b) of the Trust Agreement for
each
Mortgage File pertaining to each Mortgage Loan listed on Schedule A, to the
Trust Agreement, subject to any exceptions noted on Schedule I
hereto.
Capitalized
words and phrases used herein and not otherwise defined herein shall have the
respective meanings assigned to them in the Trust Agreement. This Certificate
is
subject in all respects to the terms of Section 2.02 of the Trust Agreement
and
the Trust Agreement sections cross-referenced therein.
|
[Custodian]
|
||
| |
|
|
| By: | ||
|
Name:
|
||
|
Title:
|
||
X-0-0
XXXXXXX
X-0
FORM
OF
INTERIM CERTIFICATION
Date
U.S.
Bank
National Association
One
Federal Street
Boston,
M.A. 02110
Attention:
Corporate Trust Services
Aurora
Loan Services LLC, as Master Servicer
00000
Xxxx Xxxxxxx Xxxxx
Xxxxxxxxx,
Xxxxxxxx 00000
Structured
Asset Securities Corporation, as Depositor
000
Xxxxxxx Xxxxxx, 00xx Xxxxx
Xxx
Xxxx,
Xxx Xxxx 00000
Attention:
Mortgage Finance, LXS 2007-15N
[NIMS
Insurer, if applicable]
|
Re:
|
Trust
Agreement dated as of July 1, 2007 (the “Trust Agreement”), by and among
Structured Asset Securities Corporation, as Depositor, Aurora Loan
Services LLC, as Master Servicer and U.S. Bank National Association,
as
Trustee with respect to Xxxxxx XS Trust Mortgage Pass-Through
Certificates, Series 2007-15N
|
Ladies
and Gentlemen:
In
accordance with Section 2.02(b) of the Trust Agreement, the undersigned, as
Custodian, 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 Schedule
I
hereto) it (or its custodian) has received the applicable documents listed
in
Section 2.01(b) of the Trust Agreement.
The
undersigned hereby certifies that as to each Mortgage Loan identified on the
Mortgage Loan Schedule, other than any Mortgage Loan listed on Schedule I
hereto, it has reviewed the documents listed in Section 2.01(b) of the Trust
Agreement and has determined that each such document appears regular on its
face
and appears to relate to the Mortgage Loan identified in such
document.
Capitalized
words and phrases used herein shall have the respective meanings assigned to
them in the Trust Agreement. This Certificate is qualified in all respects
by
the terms of said Trust Agreement including, but not limited to, Section
2.02(b).
|
[Custodian]
|
||
| |
|
|
| By: | ||
|
Name:
|
||
|
Title:
|
||
X-0-0
XXXXXXX
X-0
FORM
OF
FINAL CERTIFICATION
Date
U.S.
Bank
National Association
One
Federal Street
Boston,
M.A. 02110
Attention:
Corporate Trust Services
Aurora
Loan Services LLC, as Master Servicer
00000
Xxxx Xxxxxxx Xxxxx
Xxxxxxxxx,
Xxxxxxxx 00000
Structured
Asset Securities Corporation, as Depositor
000
Xxxxxxx Xxxxxx, 00xx Xxxxx
Xxx
Xxxx,
Xxx Xxxx 00000
Attention:
Mortgage Finance, LXS 2007-15N
[NIMS
Insurer, if applicable]
|
Re:
|
Trust
Agreement dated as of July 1, 2007 (the “Trust Agreement”), by and among
Structured Asset Securities Corporation, as Depositor, Aurora Loan
Services LLC, as Master Servicer and U.S. Bank National Association,
as
Trustee with respect to Xxxxxx XS Trust Mortgage Pass-Through
Certificates, Series 2007-15N
|
Ladies
and Gentlemen:
In
accordance with Section 2.02(d) of the Trust Agreement, the undersigned, as
Custodian on behalf of the 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 Schedule I hereto) it (or its custodian) has received the
applicable documents listed in Section 2.01(b) of the Trust
Agreement.
The
undersigned hereby certifies that as to each Mortgage Loan identified in the
Mortgage Loan Schedule, other than any Mortgage Loan listed on Schedule I
hereto, it has reviewed the documents listed in Section 2.01(b) of the Trust
Agreement and has determined that each such document appears to be complete
and,
based on an examination of such documents, the information set forth in items
(i) through (vi) of the Mortgage Loan Schedule is correct.
Capitalized
words and phrases used herein shall have the respective meanings assigned to
them in the Trust Agreement. This Certificate is qualified in all respects
by
the terms of said Trust Agreement.
|
[Custodian]
|
||
| |
|
|
| By: | ||
|
Name:
|
||
|
Title:
|
||
X-0-0
XXXXXXX
X-0
FORM
OF
ENDORSEMENT
Pay
to
the order of U.S. Bank National Association, as trustee (the “Trustee”), under a
Trust Agreement dated as of July 1, 2007, among Structured Asset Securities
Corporation, as depositor, Aurora Loan Services LLC, as master servicer, and
the
Trustee, relating to Xxxxxx XS Trust Mortgage Pass-Through Certificates, Series
2007-15N, without recourse.
|
[current signatory on note] |
||
|
|
||
| |
|
|
| By: | ||
|
Name:
|
||
|
Title:
|
||
B-4-1
EXHIBIT
C
REQUEST
FOR RELEASE OF DOCUMENTS AND RECEIPT
Date
[Addressed
to Trustee
or,
if
applicable, Custodian]
In
connection with the administration of the mortgages held by you as Trustee
under
a certain Trust Agreement dated as of July 1, 2007 by and among Structured
Asset
Securities Corporation, as Depositor, U.S. Bank National Association, as
Trustee, and Aurora Loan Services LLC, as Master Servicer (the “Trust
Agreement”), the undersigned Servicer hereby requests a release of the Mortgage
File held by you as Trustee with respect to the following described Mortgage
Loan for the reason indicated below.
Mortgagor’s
Name:
Address:
Loan
No.:
Reason
for requesting file:
|
1.
|
Mortgage
Loan paid in full. (The Servicer hereby certifies that all amounts
received in connection with the loan have been or will be credited
to the
Certificate Account pursuant to the Trust
Agreement.)
|
|
2.
|
The
Mortgage Loan is being foreclosed.
|
|
3.
|
Mortgage
Loan substituted. (The Servicer hereby certifies that a Qualifying
Substitute Mortgage Loan has been assigned and delivered to you along
with
the related Mortgage File pursuant to the Trust
Agreement.)
|
|
4.
|
Mortgage
Loan repurchased. (The Servicer hereby certifies that the applicable
Purchase Price (or FPD Purchase Price in the case of a First Payment
Default Mortgage Loan or EPD Purchase Price in the case of an Early
Payment Default Mortgage Loan) has been credited to the Certificate
Account pursuant to the Trust
Agreement.)
|
|
5.
|
Other.
(Describe)
|
The
undersigned acknowledges that the above Mortgage File will be held by the
undersigned in accordance with the provisions of the Trust Agreement and will
be
returned to you within ten (10) days of our receipt of the Mortgage File, except
if the Mortgage Loan has been paid in full, or repurchased or substituted for
a
Qualifying Substitute Mortgage Loan (in which case the Mortgage File will be
retained by us permanently) and except if the Mortgage Loan is being foreclosed
(in which case the Mortgage File will be returned when no longer required by
us
for such purpose).
Capitalized
terms used herein shall have the meanings ascribed to them in the Trust
Agreement.
C-1
|
[Name
of Servicer]
|
||
| |
|
|
| By: | ||
|
Name:
|
||
|
Title:
Servicing Officer
|
||
C-2
EXHIBIT
D-1
FORM
OF
RESIDUAL CERTIFICATE TRANSFER AFFIDAVIT (TRANSFEREE)
|
STATE
OF
|
)
|
|
)
ss
|
|
|
COUNTY
OF
|
)
|
[NAME
OF
OFFICER], _________________ being first duly sworn, deposes and
says:
1. That
he
[she] is [title of officer] ________________________ of [name of Purchaser]
_________________________________________ (the “Purchaser”), a
_______________________ [description of type of entity] duly organized and
existing under the laws of the [State of __________] [United States], on behalf
of which he [she] makes this affidavit.
2. That
the
Purchaser’s Taxpayer Identification Number is
[
].
3. That
the
Purchaser is not a “disqualified organization” within the meaning of Section
860E(e)(5) of the Internal Revenue Code of 1986, as amended (the “Code”) and
will not be a “disqualified organization” as of [date of transfer], and that the
Purchaser is not acquiring a Residual Certificate (as defined in the Agreement)
for the account of, or as agent (including a broker, nominee, or other
middleman) for, any person or entity from which it has not received an affidavit
substantially in the form of this affidavit. For these purposes, a “disqualified
organization” means the United States, any state or political subdivision
thereof, any foreign government, any international organization, any agency
or
instrumentality of any of the foregoing (other than an instrumentality if all
of
its activities are subject to tax and a majority of its board of directors
is
not selected by such governmental entity), any cooperative organization
furnishing electric energy or providing telephone service to persons in rural
areas as described in Code Section 1381(a)(2)(C), any “electing large
partnership” within the meaning of Section 775 of the Code, or any organization
(other than a farmers’ cooperative described in Code Section 521) that is exempt
from federal income tax unless such organization is subject to the tax on
unrelated business income imposed by Code Section 511.
4. That
the
Purchaser is not, and on _______________ [date of transfer] will not be, an
employee benefit plan or other arrangement subject to Title I of the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”), a plan subject to
Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”) or a
plan subject to any provisions under any federal, state, local, non-U.S. or
other laws or regulations that are substantively similar to the foregoing
provisions of ERISA or the Code (collectively, a “Plan”), and is not directly or
indirectly acquiring a Residual Certificate for, on behalf of or with any assets
of any such Plan.
5. That
the
Purchaser hereby acknowledges that under the terms of the Trust Agreement (the
“Agreement”) by and among Structured Asset Securities Corporation, as Depositor,
Aurora Loan Services LLC, as Master Servicer, and U.S. Bank National
Association, as Trustee, dated as of July 1, 2007, relating to Xxxxxx XS Trust
Mortgage Pass-Through Certificates, Series 2007-15N, no transfer of the Residual
Certificates shall be permitted to be made to any person unless the Depositor
and Trustee have received a certificate from such transferee containing the
representations in paragraphs 3 and 4 hereof.
D-1-1
6. That
the
Purchaser does not hold REMIC residual securities as nominee to facilitate
the
clearance and settlement of such securities through electronic book entry
changes in accounts of participating organizations (such entity, a “Book-Entry
Nominee”).
7. That
the
Purchaser does not have the intention to impede the assessment or collection
of
any federal, state or local taxes legally required to be paid with respect
to
such Residual Certificate, and that the Purchaser has provided financial
statements or other financial information requested by the transferor in
connection with the transfer of the Residual Certificate in order to permit
the
transferor to assess the financial capability of the Purchaser to pay such
taxes.
8. That
the
Purchaser will not transfer a Residual Certificate to any person or entity
(i)
as to which the Purchaser has actual knowledge that the requirements set forth
in paragraph 3, paragraph 6 or paragraph 10 hereof are not satisfied or that
the
Purchaser has reason to believe does not satisfy the requirements set forth
in
paragraph 7 hereof, and (ii) without obtaining from the prospective Purchaser
an
affidavit substantially in this form and providing to the Trustee a written
statement substantially in the form of Exhibit D-2 to the
Agreement.
9. That
the
Purchaser understands that, as the holder of a Residual Certificate, the
Purchaser may incur tax liabilities in excess of any cash flows generated by
the
interest and that it intends to pay taxes associated with holding such Residual
Certificate as they become due.
10. That
the
Purchaser (i) is not a Non U.S. Person or (ii) is a Non U.S. Person that holds
a
Residual Certificate in connection with the conduct of a trade or business
within the United States and has furnished the transferor and the Trustee with
an effective Internal Revenue Service Form W-8ECI (Certificate of Foreign
Person’s Claim for Exemption From Withholding on Income Effectively Connected
With the Conduct of a Trade or Business in the United States) or successor
form
at the time and in the manner required by the Code or (iii) is a Non U.S. Person
that has delivered to both the transferor and the Trustee an opinion of a
nationally recognized tax counsel to the effect that the transfer of such
Residual Certificate to it is in accordance with the requirements of the Code
and the regulations promulgated thereunder and that such transfer of a Residual
Certificate will not be disregarded for federal income tax purposes. “Non U.S.
Person” means an individual, corporation, partnership or other person other than
(i) a citizen or resident of the United States; (ii) a corporation, partnership
or other entity created or organized in or under the laws of the United States
or any state thereof, including for this purpose, the District of Columbia;
(iii) an estate that is subject to U.S. federal income tax regardless of the
source of its income; (iv) 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 United States trustees have authority to control all substantial decisions
of the trust; and, (v) to the extent provided in Treasury regulations, certain
trusts in existence on August 20, 1996 that are treated as United States persons
prior to such date and elect to continue to be treated as United States
persons.
D-1-2
11. That
the
Purchaser agrees to such amendments of the Trust Agreement as may be required
to
further effectuate the restrictions on transfer of any Residual Certificate
to
such a “disqualified organization,” an agent thereof, a Book Entry Nominee, or a
person that does not satisfy the requirements of paragraph 7 and paragraph
10
hereof.
12. That
the
Purchaser consents to the designation of the Trustee as its agent to act as
“tax
matters person” of the Trust Fund pursuant to the Trust Agreement.
D-1-3
IN
WITNESS WHEREOF, the Purchaser has caused this instrument to be executed on
its
behalf, pursuant to authority of its Board of Directors, by its [title of
officer] this _____ day of __________, 20__.
|
[name of Purchaser] |
||
| |
|
|
| By: | ||
|
Name: |
||
|
Title:
|
||
Personally
appeared before me the above named [name of officer] ________________, known
or
proved to me to be the same person who executed the foregoing instrument and
to
be the [title of officer] _________________ of the Purchaser, and acknowledged
to me that he [she] executed the same as his [her] free act and deed and the
free act and deed of the Purchaser.
Subscribed
and sworn before me this _____ day of __________, 20__.
NOTARY
PUBLIC
COUNTY
OF _____________________
STATE
OF ______________________
My
commission expires the _____ day of __________, 20__.
X-0-0
XXXXXXX
X-0
RESIDUAL
CERTIFICATE TRANSFER AFFIDAVIT (TRANSFEROR)
|
Date |
Re: Xxxxxx
XS
Trust Mortgage Pass-Through Certificates, Series 2007-15N
_______________________
(the “Transferor”) has reviewed the attached affidavit of
_____________________________ (the “Transferee”), and has no actual knowledge
that such affidavit is not true and has no reason to believe that the
information contained in paragraph 7 thereof is not true, and has no reason
to
believe that the Transferee has the intention to impede the assessment or
collection of any federal, state or local taxes legally required to be paid
with
respect to a Residual Certificate. In addition, the Transferor has conducted
a
reasonable investigation at the time of the transfer and found that the
Transferee had historically paid its debts as they came due and found no
significant evidence to indicate that the Transferee will not continue to pay
its debts as they become due.
| Very truly yours, | ||
| |
|
|
|
Name: |
||
| Title: | ||
D-2-1
EXHIBIT
E
SERVICING
AGREEMENTS
Reconstituted
Servicing Agreement, dated as of July 1, 2007, by and between the Seller and
American Home Mortgage Servicing, Inc.
See
Exhibit 99.4
Reconstituted
Servicing Agreement, dated as of July 1, 2007, by and between the Seller and
GreenPoint
See
Exhibit 99.2
Reconstituted
Servicing Agreement, dated as of July 1, 2007, by and between the Seller and
IndyMac Bank, F.S.B.
[Intentionally
Omitted]
Reconstituted
Servicing Agreement, dated as of July 1, 2007, by and between the Seller and
Bank of America, National Association
[Intentionally
Omitted]
Reconstituted
Servicing Agreement, dated as of July 1, 2007, by and between the Seller and
SunTrust
[Intentionally
Omitted]
Reconstituted
Servicing Agreement, dated as of July 1, 2007, by and between the Seller and
Residential Funding Company, LLC
See
Exhibit 99.8
Securitization
Servicing Agreement, dated as of July 1, 2007, by and between the Seller,
Aurora and GMACM
See
Exhibit 99.10
Reconstituted
Servicing Agreement, dated as of July 1, 2007, by and between the Seller and
Countrywide Home Loans Servicing LP
See
Exhibit 99.6
Servicing
Agreement, dated as of July 1, 2007, by and between the Seller and
Aurora
See
Exhibit 99.11
E-1
EXHIBIT
F
FORM
OF
RULE 144A TRANSFER CERTIFICATE
Re: Xxxxxx
XS
Trust Mortgage Pass Through Certificates, Series 2007-15N
Reference
is hereby made to the Trust Agreement dated as of July 1, 2007 (the “Trust
Agreement”) by and among Structured Asset Securities Corporation, as Depositor,
Aurora Loan Services LLC, as Master Servicer, and U.S. Bank National
Association, as Trustee. Capitalized terms used but not defined herein shall
have the meanings given to them in the Trust Agreement.
This
letter relates to $__________ initial Certificate Balance of Class Certificates
which are held in the form of Definitive Certificates registered in the name
of
(the “Transferor”). The Transferor has requested a transfer of such Definitive
Certificates for Definitive Certificates of such Class registered in the name
of
[insert name of transferee].
In
connection with such request, and in respect of such Certificates, the
Transferor hereby certifies that such Certificates are being transferred in
accordance with (i) the transfer restrictions set forth in the Trust Agreement
and the Certificates and (ii) Rule 144A under the Securities Act to a purchaser
that the Transferor reasonably believes is a “qualified institutional buyer”
within the meaning of Rule 144A purchasing for its own account or for the
account of a “qualified institutional buyer,” which purchaser is aware that the
sale to it is being made in reliance upon Rule 144A, in a transaction meeting
the requirements of Rule 144A and in accordance with any applicable securities
laws of any state of the United States or any other applicable
jurisdiction.
This
certificate and the statements contained herein are made for your benefit and
the benefit of the Depositor.
|
[Name
of Transferor]
|
||
| |
|
|
| By: | ||
|
Name:
|
||
| Title: | ||
Dated:
___________, ____
F-1
EXHIBIT
G
FORM
OF
PURCHASER’S LETTER FOR
INSTITUTIONAL
ACCREDITED INVESTOR
Date
Dear
Sirs:
In
connection with our proposed purchase of $______________ principal amount of
Xxxxxx XS Trust Mortgage Pass Through Certificates, Series 2007-15N (the
“Privately Offered Certificates”) of the Structured Asset Securities Corporation
(the “Depositor”), we confirm that:
|
(1)
|
We
understand that the Privately Offered Certificates have not been,
and will
not be, registered under the Securities Act of 1933, as amended (the
“Securities Act”), and may not be sold except as permitted in the
following sentence. We agree, on our own behalf and on behalf of
any
accounts for which we are acting as hereinafter stated, that if we
should
sell any Privately Offered Certificates within two years of the later
of
the date of original issuance of the Privately Offered Certificates
or the
last day on which such Privately Offered Certificates are owned by
the
Depositor or any Affiliate of the Depositor we will do so only (A)
to the
Depositor, (B) to “qualified institutional buyers” (within the meaning of
Rule 144A under the Securities Act) in accordance with Rule 144A
under the
Securities Act (“QIBs”), (C) pursuant to the exemption from registration
provided by Rule 144 under the Securities Act, or (D) to an institutional
“accredited investor” within the meaning of Rule 501(a)(1), (2), (3) or
(7) of Regulation D under the Securities Act that is not a QIB (an
“Institutional Accredited Investor”) which, prior to such transfer,
delivers to the Trustee under the Trust Agreement dated as of July
1, 2007
by and among the Depositor, Aurora Loan Services LLC, as Master Servicer,
and U.S. Bank National Association, as Trustee (the “Trustee”), a signed
letter in the form of this letter; and we further agree, in the capacities
stated above, to provide to any person purchasing any of the Privately
Offered Certificates from us a notice advising such purchaser that
resales
of the Privately Offered Certificates are restricted as stated
herein.
|
|
(2)
|
We
understand that, in connection with any proposed resale of any Privately
Offered Certificates to an Institutional Accredited Investor, we
will be
required to furnish to the Trustee and the Depositor a certification
from
such transferee in the form hereof to confirm that the proposed sale
is
being made pursuant to an exemption from, or in a transaction not subject
to, the registration requirements of the Securities Act. We further
understand that the Privately Offered Certificates purchased by us
will
bear a legend to the foregoing
effect.
|
|
(3)
|
We
are acquiring the Privately Offered Certificates for investment purposes
and not with a view to, or for offer or sale in connection with,
any
distribution in violation of the Securities Act. We have such knowledge
and experience in financial and business matters as to be capable
of
evaluating the merits and risks of our investment in the Privately
Offered
Certificates, and we and any account for which we are acting are
each able
to bear the economic risk of such
investment.
|
|
(4)
|
We
are an Institutional Accredited Investor and we are acquiring the
Privately Offered Certificates purchased by us for our own account
or for
one or more accounts (each of which is an Institutional Accredited
Investor) as to each of which we exercise sole investment
discretion.
|
G-1
|
(5)
|
We
have received such information as we deem necessary in order to make
our
investment decision.
|
|
(6)
|
If
we are acquiring an ERISA-Restricted Certificate, we are not a Plan
and we
are not acquiring the ERISA-Restricted Certificate for, on behalf
of or
with any assets of a Plan, except as may be permitted pursuant to
Section
3.03(d) of the Trust Agreement.
|
Terms
used in this letter which are not otherwise defined herein have the respective
meanings assigned thereto in the Trust Agreement.
G-2
You
and
the Depositor are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party
in
any administrative or legal proceeding or official inquiry with respect to
the
matters covered hereby.
|
Very
truly yours,
|
||
|
[Purchaser]
|
||
| |
|
|
| By: | ||
|
Name: |
||
| Title: | ||
G-3
EXHIBIT
H
FORM
OF
ERISA TRANSFER AFFIDAVIT
|
STATE
OF
|
)
|
|
)
ss
|
|
|
COUNTY
OF NEW YORK
|
)
|
The
undersigned, being first duly sworn, deposes and says as follows:
|
(1)
|
The
undersigned is the ______________________ of (the “Investor”), a
[corporation duly organized] and existing under the laws of __________,
on
behalf of which he makes this
affidavit.
|
|
(2)
|
The
Investor in an ERISA-Restricted Certificate (A) is not, and on
_______________ [date of transfer] will not be, an employee benefit
plan
or arrangement subject to Title I of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”), a plan subject to Section 4975
of the Internal Revenue Code of 1986, as amended (the “Code”) or a plan
subject to any provisions under any federal, state, local, non-U.S.
or
other laws or regulations that are substantively similar to the foregoing
provisions of ERISA or the Code (“Similar Law”) (collectively, a “Plan”),
and is not directly or indirectly acquiring the Certificate for,
on behalf
of or with any assets of any such Plan, (B) if the Certificate has
been
the subject of an ERISA-Qualifying Underwriting, is an insurance
company
that is acquiring the Certificate with assets of an “insurance company
general account” as defined in Section V(E) of Prohibited Transaction
Class Exemption (“PTCE”) 95-60 and the acquisition and holding of the
Certificate are covered and exempt under Sections I and III of PTCE
95-60,
or (C) solely in the case of a Definitive Certificate, shall herewith
deliver an Opinion of Counsel satisfactory to the Certificate Registrar,
the Trustee and the Depositor, and upon which the Trustee, the Certificate
Registrar and the Depositor shall be entitled to rely, to the effect
that
the acquisition and holding of such Certificate by the Investor will
not
result in a nonexempt prohibited transaction under Title I of ERISA
or
Section 4975 of the Code, or a violation of Similar Law, and will
not
subject the Trustee, the Master Servicer, the Certificate Registrar,
any
Servicer or the Depositor to any obligation in addition to those
undertaken by such entities in the Trust Agreement, which Opinion
of
Counsel shall not be an expense of the Trustee, the Master Servicer,
the
Certificate Registrar, any Servicer or the
Depositor.
|
|
(3)
|
Either
(i) the investor in a Grantor Trust Certificate, Group I Senior
Certificate is not, and is not acting for, on behalf of or with any
assets
of, an employee benefit plan or other arrangement subject to Title
I of
ERISA or plan subject to Section 4975 of the Code, or (ii)(A) solely
in
the case of a Grantor Trust Certificate, until the termination of
the
applicable Deferred Interest Cap Agreement, the acquisition and holding
of
the Grantor Trust Certificate by the investor will not constitute
or
result in a non-exempt prohibited transaction under Title I of ERISA
or
Section 4975 of the Code, (B) solely in the case of a Group I Senior
Certificate, until the termination of the Swap Agreement, the acquisition
and holding of the Group I Senior Certificate by the investor will
not
constitute or result in a non-exempt prohibited transaction under
Title I
of ERISA or Section 4975 of the Code. The representations set forth
in
this paragraph applicable to Exchange Certificates shall also apply
to
Exchangeable Certificates.
|
H-1
|
(4)
|
The
Investor hereby acknowledges that under the terms of the Trust Agreement
(the “Agreement”) by and among Structured Asset Securities Corporation, as
Depositor, Aurora Loan Services LLC, as Master Servicer, and U.S.
Bank
National Association, as Trustee, dated as of July 1, 2007, regarding
Xxxxxx XS Trust Mortgage Pass-Through Certificates, Series 2007-15N,
no
transfer of the Grantor Trust Certificates, Group I Senior Certificates
or
ERISA-Restricted Certificates shall be permitted to be made to any
person
unless the Certificate Registrar, Depositor and Trustee have received
a
certificate from such transferee in the form
hereof.
|
H-2
IN
WITNESS WHEREOF, the Investor has caused this instrument to be executed on
its
behalf, pursuant to proper authority, by its duly authorized officer, duly
attested, this ____ day of _______________, 20___.
|
[Investor]
|
||
| |
|
|
| By: | ||
|
Name: |
||
| Title: | ||
ATTEST:
STATE
OF
)
) ss:
COUNTY
OF )
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 Investor, and acknowledged that he executed the
same
as his free act and deed and the free act and deed of the Investor.
Subscribed
and sworn before me this _____ day of _________ 20___.
|
NOTARY PUBLIC |
|||
| My commission expires the | |||
| _____ day of __________, 20___. | |||
H-3
EXHIBIT
I
[RESERVED]
I-1
EXHIBIT
J
[RESERVED]
J-1
EXHIBIT
K
CUSTODIAL
AGREEMENTS
Custodial
Agreement, dated as of July 1, 2007, by and between the Trustee and Deutsche
Bank National Trust Company
Custodial
Agreement, dated as of July 1, 2007, by and between the Trustee and LaSalle
Bank
National Association
Custodial
Agreement, dated as of July 1, 2007, by and between the Trustee and U.S. Bank
National Association
Custodial
Agreement, dated as of July 1, 2007, by and between the Trustee and Xxxxx Fargo
Bank, N.A.
[Intentionally
Omitted]
K-1
EXHIBIT
L
[RESERVED]
L-1
EXHIBIT
M
FORM
OF
AMBAC CERTIFICATE INSURANCE POLICY
See
Exhibit 99.18
M-1
EXHIBIT
N
FORM
OF
SWAP AGREEMENT
See
Exhibit 99.16
N-1
EXHIBIT
O
FORM
OF
INTEREST RATE CAP AGREEMENT
See
Exhibit 99.12
O-1
EXHIBIT
P
FORMS
OF
DEFERRED INTEREST CAP AGREEMENTS
See
Exhibit 99.13
P-1
EXHIBIT
Q-1
ADDITIONAL
FORM 10-D DISCLOSURE
|
Item
on Form 10-D
|
Party
Responsible
|
|
|
Item
1: Distribution and Pool Performance Information
|
Master
Servicer (as to any Servicer, to the extent provided by such
Servicer),
|
|
|
Any
information required by 1121 which is NOT included on the Distribution
Date Statement
|
Trustee
(if Paying Agent), Paying Agent and Depositor (to the extent of any
additional information that has not already been provided by the
Master
Servicer)
|
|
|
Item
2: Legal Proceedings
per
Item 1117 of Reg AB
|
(i)
All parties to the Trust Agreement (as to themselves), (ii) the Trustee
as
to the issuing entity, (iii) the Depositor as to the sponsor, any
1110(b)
originator, any 1100(d)(1) party and (iv) the Master Servicer, as
to any
Servicer, to the extent provided by such Servicer
|
|
|
Item
3: Sale of Securities and Use of Proceeds
|
Depositor
|
|
|
Item
4: Defaults Upon Senior Securities
|
Trustee
|
|
|
Item
5: Submission of Matters to a Vote of Security Holders
|
Trustee
|
|
|
Item
6: Significant Obligors of Pool Assets
|
Depositor
|
|
|
Item
7: Significant Enhancement Provider Information
|
Depositor
|
|
|
Item
8: Other Information
|
Any
party responsible for disclosure items on Form 8-K
|
|
|
Item
9: Exhibits
|
Depositor
and Master Servicer (on behalf of any Servicer or on its own behalf
if
acting as a Servicer)
|
Q-1-1
EXHIBIT
Q-2
ADDITIONAL
FORM 10-K DISCLOSURE
|
Item
on Form 10-K
|
Party
Responsible
|
|
|
Item
1B: Unresolved Staff Comments
|
Depositor
|
|
|
Item
9B: Other Information
|
Any
party responsible for disclosure items on Form 8-K
|
|
|
Item
15: Exhibits, Financial Statement Schedules
|
Depositor,
Servicer, Master Servicer, Subservicer
|
|
|
Additional
Item:
Disclosure
per Item 1117 of Reg AB
|
(i)
All parties to the Trust Agreement (as to themselves), (ii) the
Trustee
and the Depositor as to the issuing entity, (iii) the Depositor
as to the
sponsor, any 1110(b) originator, any 1100(d)(1) party and (iv)
the Master
Servicer, as to any Servicer, to the extent provided by such
Servicer
|
|
|
Additional
Item:
Disclosure
per Item 1119 of Reg AB
|
(i)
All parties to the Trust Agreement as to themselves, (ii) the Depositor
as
to the sponsor, originator, significant obligor, enhancement or
support
provider and (iii) the Master Servicer, as to any Servicer, to
the extent
provided by such Servicer
|
|
|
Additional
Item:
Disclosure
per Item 1112(b) of Reg AB
|
Depositor
|
|
|
Additional
Item:
Disclosure
per Items 1114(b) and 1115(b) of Reg AB
|
Depositor
|
Q-2-1
EXHIBIT
Q-3
ADDITIONAL
FORM 8-K DISCLOSURE
|
Item
on Form 8-K
|
Party
Responsible
|
|
|
Item
1.01- Entry into a Material Definitive Agreement
|
Any
party to the Trust Agreement which is a party to such
agreement
|
|
|
Item
1.02- Termination of a Material Definitive Agreement
|
Any
party to the Trust Agreement which is a party to such
agreement
|
|
|
Item
1.03- Bankruptcy or Receivership
|
Depositor
|
|
|
Item
2.04- Triggering Events that Accelerate or Increase a Direct Financial
Obligation or an Obligation under an Off-Balance Sheet
Arrangement
|
Depositor
|
|
|
Item
3.03- Material Modification to Rights of Security Holders
|
Trustee
and Depositor
|
|
|
Item
5.03- Amendments of Articles of Incorporation or Bylaws; Change
of Fiscal
Year
|
Depositor
|
|
|
Item
6.01- ABS Informational and Computational Material
|
Depositor
|
|
|
Item
6.02- Change of Servicer or Trustee
|
Master
Servicer (as to itself and as to any Servicer, to the extent provided
by
such Servicer), Trustee (as to itself), Seller
|
|
|
Item
6.03- Change in Credit Enhancement or External Support
|
Depositor
|
|
|
Item
6.04- Failure to Make a Required Distribution
|
Trustee
|
|
|
Item
6.05- Securities Act Updating Disclosure
|
Depositor
|
|
|
Item
7.01- Reg FD Disclosure
|
Depositor
|
|
|
Item
8.01
|
Depositor
|
|
|
Item
9.01
|
Depositor
|
Q-3-1
EXHIBIT
Q-4
ADDITIONAL
DISCLOSURE NOTIFICATION
U.S.
Bank
National Association,
as
Trustee to Xxxxxx XS Trust Mortgage
Pass-Through
Certificates, Series 2007-15N
Xxx
Xxxxxxx Xxxxxx
0xx
Xxxxx
Xxxxxx,
Xxxxxxxxxxxxx 00000
RE:
**Additional Form [10-D][10-K][8-K] Disclosure** Required
Ladies
and Gentlemen:
In
accordance with Section [ ] of the Trust Agreement, dated as of July 1,
2007, by and among Structured Asset Securities Corporation, as Depositor,
Aurora
Loan Services LLC, as Master Servicer, and U.S. Bank National Association,
as
Trustee, the undersigned, as [ ], hereby notifies you that certain events
have come to our attention that [will] [may] need to be disclosed on Form
[10-D][10-K][8-K].
Description
of Additional Form [10-D][10-K][8-K] Disclosure:
List
of any Attachments hereto to be included in the Additional Form
[10-D][10-K][8-K] Disclosure:
Any
inquiries related to this notification should be directed to [ ], phone
number: [ ]; email address: [ ].
| [NAME OF PARTY], | ||
|
as
[role]
|
||
| |
|
|
| By: | ||
|
Name:
|
||
| Title: | ||
Q-4-1
EXHIBIT R
SERVICING
CRITERIA TO BE ADDRESSED
IN
ASSESSMENT OF COMPLIANCE
Key:
X
-
obligation
Where
there are multiple checks for criteria the attesting party will identify
in
their management assertion that they are attesting only to the portion of
the
distribution chain they are responsible for in the related transaction
agreements. Capitalized terms used herein but not defined herein shall have
the
meanings assigned to them in the Trust Agreement dated as of July 1, 2007
(the
“Trust Agreement”), by and among U.S. Bank National Association, (the
“Trustee”), Aurora Loan Services LLC, as master servicer (the “Master
Servicer”), and Structured Asset Securities Corporation, as depositor (the
“Depositor”).
|
Reg
AB
Reference
|
Servicing
Criteria
|
Paying
Agent (including the Trustee if acting as
Paying
Agent)
|
Trustee
|
Master
Servicer
|
||||
|
General
Servicing Considerations
|
||||||||
|
1122(d)(1)(i)
|
Policies
and procedures are instituted to monitor any performance or other
triggers
and events of default in accordance with the transaction
agreements.
|
X
|
||||||
|
1122(d)(1)(ii)
|
If
any material servicing activities are outsourced to third parties,
policies and procedures are instituted to monitor the third party’s
performance and compliance with such servicing activities.
|
If
applicable for the transaction participant
|
If
applicable for the transaction participant
|
If
applicable for the transaction participant
|
||||
|
1122(d)(1)(iii)
|
Any
requirements in the transaction agreements to maintain a back-up
servicer
for the pool assets are maintained.
|
|||||||
|
1122(d)(1)(iv)
|
A
fidelity bond and errors and omissions policy is in effect on the
party
participating in the servicing function throughout the reporting
period in
the amount of coverage required by and otherwise in accordance
with the
terms of the transaction agreements.
|
X
|
||||||
|
Cash
Collection and Administration
|
||||||||
|
1122(d)(2)(i)
|
Payments
on pool assets are deposited into the appropriate custodial bank
accounts
and related bank clearing accounts no more than two business days
following receipt, or such other number of days specified in the
transaction agreements.
|
X
|
X
|
R-1
|
Reg
AB
Reference |
Servicing
Criteria
|
|
Paying
Agent (including the Trustee if acting as
Paying
Agent)
|
|
Trustee
|
|
Master
Servicer
|
|
|
1122(d)(2)(ii)
|
Disbursements
made via wire transfer on behalf of an obligor or to an investor
are made
only by authorized personnel.
|
X
|
X
|
|||||
|
1122(d)(2)(iii)
|
Advances
of funds or guarantees regarding collections, cash flows or distributions,
and any interest or other fees charged for such advances, are made,
reviewed and approved as specified in the transaction
agreements.
|
X
|
||||||
|
1122(d)(2)(iv)
|
The
related accounts for the transaction, such as cash reserve accounts
or
accounts established as a form of over collateralization, are separately
maintained (e.g., with respect to commingling of cash) as set forth
in the
transaction agreements.
|
X
|
X
|
X
|
||||
|
1122(d)(2)(v)
|
Each
custodial account is maintained at a federally insured depository
institution as set forth in the transaction agreements. For purposes
of
this criterion, “federally insured depository institution” with respect to
a foreign financial institution means a foreign financial institution
that
meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange
Act.
|
X
|
||||||
|
1122(d)(2)(vi)
|
Unissued
checks are safeguarded so as to prevent unauthorized
access.
|
X
|
||||||
|
1122(d)(2)(vii)
|
Reconciliations
are prepared on a monthly basis for all asset-backed securities
related
bank accounts, including custodial accounts and related bank clearing
accounts. These reconciliations are (A) mathematically accurate;
(B)
prepared within 30 calendar days after the bank statement cutoff
date, or
such other number of days specified in the transaction agreements;
(C)
reviewed and approved by someone other than the person who prepared
the
reconciliation; and (D) contain explanations for reconciling items.
These
reconciling items are resolved within 90 calendar days of their
original
identification, or such other number of days specified in the transaction
agreements.
|
X
|
X
|
R-2
| Reg
AB Reference |
Servicing
Criteria
|
|
Paying
Agent (including the Trustee if acting as
Paying
Agent)
|
|
Trustee
|
|
Master
Servicer
|
|
|
|
Investor
Remittances and Reporting
|
|||||||
|
1122(d)(3)(i)
|
Reports
to investors, including those to be filed with the Commission,
are
maintained in accordance with the transaction agreements and applicable
Commission requirements. Specifically, such reports (A) are prepared
in
accordance with timeframes and other terms set forth in the transaction
agreements; (B) provide information calculated in accordance with
the
terms specified in the transaction agreements; (C) are filed with
the
Commission as required by its rules and regulations; and (D) agree
with
investors’ or the trustee’s records as to the total unpaid principal
balance and number of Pool Assets serviced by the
Servicer.
|
X
|
X
|
|||||
|
1122(d)(3)(ii)
|
Amounts
due to investors are allocated and remitted in accordance with
timeframes,
distribution priority and other terms set forth in the transaction
agreements.
|
X
|
X
|
|||||
|
1122(d)(3)(iii)
|
Disbursements
made to an investor are posted within two business days to the
Servicer’s
investor records, or such other number of days specified in the
transaction agreements.
|
X
|
X
|
|||||
|
1122(d)(3)(iv)
|
Amounts
remitted to investors per the investor reports agree with cancelled
checks, or other form of payment, or custodial bank
statements.
|
X
|
X
|
|||||
|
Pool
Asset Administration
|
||||||||
|
1122(d)(4)(i)
|
Collateral
or security on pool assets is maintained as required by the transaction
agreements or related pool asset documents.
|
|||||||
|
1122(d)(4)(ii)
|
Pool
assets and related documents are safeguarded as required by the
transaction agreements
|
R-3
|
Reg
AB
Reference |
Servicing
Criteria
|
|
Paying
Agent (including the Trustee if acting as
Paying
Agent)
|
|
Trustee
|
|
Master
Servicer
|
|
|
1122(d)(4)(iii)
|
Any
additions, removals or substitutions to the asset pool are made,
reviewed
and approved in accordance with any conditions or requirements
in the
transaction agreements.
|
X
|
||||||
|
1122(d)(4)(iv)
|
Payments
on pool assets, including any payoffs, made in accordance with
the related
pool asset documents are posted to the Servicer’s obligor records
maintained no more than two business days after receipt, or such
other
number of days specified in the transaction agreements, and allocated
to
principal, interest or other items (e.g., escrow) in accordance
with the
related pool asset documents.
|
|||||||
|
1122(d)(4)(v)
|
The
Servicer’s records regarding the pool assets agree with the Servicer’s
records with respect to an obligor’s unpaid principal
balance.
|
|||||||
|
1122(d)(4)(vi)
|
Changes
with respect to the terms or status of an obligor’s pool assets (e.g.,
loan modifications or re-agings) are made, reviewed and approved
by
authorized personnel in accordance with the transaction agreements
and
related pool asset documents.
|
X
|
||||||
|
1122(d)(4)(vii)
|
Loss
mitigation or recovery actions (e.g., forbearance plans, modifications
and
deeds in lieu of foreclosure, foreclosures and repossessions, as
applicable) are initiated, conducted and concluded in accordance
with the
timeframes or other requirements established by the transaction
agreements.
|
|||||||
|
1122(d)(4)(viii)
|
Records
documenting collection efforts are maintained during the period
a pool
asset is delinquent in accordance with the transaction agreements.
Such
records are maintained on at least a monthly basis, or such other
period
specified in the transaction agreements, and describe the entity’s
activities in monitoring delinquent pool assets including, for
example,
phone calls, letters and payment rescheduling plans in cases where
delinquency is deemed temporary (e.g., illness or
unemployment).
|
R-4
|
Reg
AB
Reference |
Servicing
Criteria
|
|
Paying
Agent (including the Trustee if acting as
Paying
Agent)
|
|
Trustee
|
|
Master
Servicer
|
|
|
1122(d)(4)(ix)
|
Adjustments
to interest rates or rates of return for pool assets with variable
rates
are computed based on the related pool asset documents.
|
|||||||
|
1122(d)(4)(x)
|
Regarding
any funds held in trust for an obligor (such as escrow accounts):
(A) such
funds are analyzed, in accordance with the obligor’s pool asset documents,
on at least an annual basis, or such other period specified in
the
transaction agreements; (B) interest on such funds is paid, or
credited,
to obligors in accordance with applicable pool asset documents
and state
laws; and (C) such funds are returned to the obligor within 30
calendar
days of full repayment of the related pool assets, or such other
number of
days specified in the transaction agreements.
|
|||||||
|
1122(d)(4)(xi)
|
Payments
made on behalf of an obligor (such as tax or insurance payments)
are made
on or before the related penalty or expiration dates, as indicated
on the
appropriate bills or notices for such payments, provided that such
support
has been received by the servicer at least 30 calendar days prior
to these
dates, or such other number of days specified in the transaction
agreements.
|
|||||||
|
1122(d)(4)(xii)
|
Any
late payment penalties in connection with any payment to be made
on behalf
of an obligor are paid from the Servicer’s funds and not charged to the
obligor, unless the late payment was due to the obligor’s error or
omission.
|
|||||||
|
1122(d)(4)(xiii)
|
Disbursements
made on behalf of an obligor are posted within two business days
to the
obligor’s records maintained by the servicer, or such other number of days
specified in the transaction agreements.
|
|||||||
|
1122(d)(4)(xiv)
|
Delinquencies,
charge-offs and uncollectible accounts are recognized and recorded
in
accordance with the transaction agreements.
|
X
|
R-5
Reg
AB
Reference |
Servicing
Criteria
|
|
Paying
Agent (including the Trustee if acting as
Paying
Agent)
|
|
Trustee
|
|
Master
Servicer
|
|
|
1122(d)(4)(xv)
|
Any
external enhancement or other support, identified in Item 1114(a)(1)
through (3) or Item 1115 of Regulation AB, is maintained as set
forth in
the transaction agreements.
|
X
|
R-6
EXHIBIT
S
TRANSACTION
PARTIES
SPONSOR
AND SELLER: XXXXXX BROTHERS HOLDINGS INC.
DEPOSITOR:
STRUCTURED ASSET SECURITIES CORPORATION
TRUSTEE:
U.S. BANK NATIONAL ASSOCIATION
MASTER
SERVICER: AURORA LOAN SERVICES LLC
SERVICERS:
AMERICAN HOME MORTGAGE SERVICING, INC., AURORA LOAN SERVICES LLC, BANK OF
AMERICA, NATIONAL ASSOCIATION, COUNTRYWIDE HOME LOANS SERVICING LP, INDYMAC
BANK, F.S.B., GREENPOINT, GMACM, SUNTRUST AND RESIDENTIAL FUNDING COMPANY,
LLC
ORIGINATORS:
AMERICAN HOME MORTGAGE CORP., GREENPOINT, INDYMAC BANK, F.S.B., BANK OF AMERICA,
NATIONAL ASSOCIATION, RESIDENTIAL FUNDING COMPANY, LLC, COUNTRYWIDE HOME
LOANS,
INC., XXXXXX BROTHERS BANK, FSB, QUICKEN LOANS, INC. AND SUNTRUST
CUSTODIANS:
DEUTSCHE BANK NATIONAL TRUST COMPANY, U.S. BANK NATIONAL ASSOCIATION, LASALLE
BANK NATIONAL ASSOCIATION AND XXXXX FARGO BANK, N.A.
SWAP
COUNTERPARTY AND INTEREST RATE CAP PROVIDER: HSBC BANK USA, NATIONAL
ASSOCIATION
DEFERRED
INTEREST CAP PROVIDER: XXXXXX BROTHERS SPECIAL FINANCING INC.
CERTIFICATE
INSURER: AMBAC ASSURANCE CORPORATION
S-1
EXHIBIT
T
FORM
OF
BACK-UP XXXXXXXX-XXXXX CERTIFICATION
[
]
[
]
[
]
Re:
Xxxxxx XS Trust Mortgage Pass-Through Certificates, Series 2007-15N
[_______],
the [_______] of [_______] (the “Company”) hereby certifies to the Depositor,
the Master Servicer and the Trustee, and each of their officers, directors
and
affiliates that:
|
(1)
|
I
have reviewed [the servicer compliance statement of the Company
provided
in accordance with Item 1123 of Regulation AB (the “Compliance
Statement”),] the report on assessment of the Company’s compliance with
the Servicing Criteria set forth in Item 1122(d) of Regulation
AB (the
“Servicing Criteria”), provided in accordance with Rules 13a-18 and 15d-18
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)
and Item 1122 of Regulation AB (the “Servicing Assessment”), the
registered public accounting firm’s attestation report provided in
accordance with Rules 13a-18 and 15d-18 under the Exchange Act
and Section
1122(b) of Regulation AB (the “Attestation Report”), and all servicing
reports, officer’s certificates and other information relating to the
servicing of the Mortgage Loans by the Company during 200[ ] that
were
delivered by the Company to any of the Depositor, the Master Servicer
and
the Trustee pursuant to the Agreement (collectively, the “Company
Servicing Information”);
|
|
(2)
|
Based
on my knowledge, the Company Servicing Information, taken as a
whole, does
not contain any 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 such statements were made, not misleading
with
respect to the period of time covered by the Company Servicing
Information;
|
|
(3)
|
Based
on my knowledge, all of the Company Servicing Information required
to be
provided by the Company under the Agreement has been provided to
the
Depositor, the Master Servicer and the
Trustee;
|
|
(4)
|
I
am responsible for reviewing the activities performed by [_______]
as
[_______] under the [_______] (the “Agreement”), and based on my knowledge
[and the compliance review conducted in preparing the Compliance
Statement] and except as disclosed in [the Compliance Statement,]
the
Servicing Assessment or the Attestation Report, the Company has
fulfilled
its obligations under the Agreement in all material respects;
and
|
|
(5)
|
[The
Compliance Statement required to be delivered by the Company pursuant
to
the Agreement, and] [The] [the] Servicing Assessment and Attestation
Report required to be provided by the Company and [by any Subservicer
or
Subcontractor] pursuant to the Agreement, have been provided to
the
Depositor, the Master Servicer and the Trustee. Any material instances
of
noncompliance described in such reports have been disclosed to
the
Depositor, the Master Servicer and the Trustee. Any material instance
of
noncompliance with the Servicing Criteria has been disclosed in
such
reports.
|
T-1
Capitalized
terms used but not defined herein have the meanings ascribed to them in the
Trust Agreement, dated as of July 1, 2007 (the “Trust Agreement”) by and among
Structured Asset Securities Corporation, as Depositor, Aurora Loan Services
LLC,
as Master Servicer and U.S. Bank National Association, as Trustee. Capitalized
terms used but not defined herein shall have the meanings given to them in
the
Trust Agreement.
|
[_______]
|
||
| as [_______] | ||
| |
|
|
| By: | ||
|
Name: |
||
|
Title:
|
||
| Date: | ||
T-2
EXHIBIT
U
FORM
OF
BACK-UP XXXXXXXX-XXXXX CERTIFICATION
TO
BE
PROVIDED BY THE TRUSTEE
|
Re:
|
Xxxxxx
XS Trust, Series 2007-15N (the “Trust”), Mortgage Pass-Through
Certificates, Series 2007-15N, issued pursuant to the Trust Agreement,
dated as of July 1, 2007, among Structured Asset Securities Corporation,
as Depositor, Aurora Loan Services, LLC, as Master Servicer, and
U.S. Bank
National Association, as Trustee
|
The
Trustee hereby certifies to the Depositor and the Master Servicer, and their
respective officers, directors and affiliates, and with the knowledge and
intent
that they will rely upon this certification, that:
(1) I
have
reviewed the annual report on Form 10-K for the fiscal year [____] (the “Annual
Report”), and all reports on Form 10-D required to be filed in respect of period
covered by the Annual Report (collectively with the Annual Report, the
“Reports”), of the Trust;
(2) To
my
knowledge, (a) the Reports, taken as a whole, do not contain any untrue
statement of a material fact or omit to state a material fact necessary to
make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by the Annual
Report, and (b) the Trustee’s assessment of compliance and related attestation
report referred to below, taken as a whole, do not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were
made, not misleading with respect to the period covered by such assessment
of
compliance and attestation report;
(3) To
my
knowledge, the distribution information required to be provided by the Trustee
under the Trust Agreement for inclusion in the Reports is included in the
Reports;
(4) I
am
responsible for reviewing the activities performed by the Trustee under the
Trust Agreement, and based on my knowledge and the compliance review conducted
in preparing the assessment of compliance of the Trustee required by the
Trust
Agreement, and except as disclosed in the Reports, the Trustee has fulfilled
its
obligations under the Trust Agreement in all material respects; and
(5) The
report on assessment of compliance with servicing criteria applicable to
the
Trustee for asset-backed securities of the Trustee and each Subcontractor
utilized by the Trustee and related attestation report on assessment of
compliance with servicing criteria applicable to it required to be included
in
the Annual Report in accordance with Item 1122 of Regulation AB and Exchange
Act
Rules 13a-18 and 15d-18 has been included as an exhibit to the Annual Report.
Any material instances of non-compliance are described in such report and
have
been disclosed in the Annual Report.
U-1
In
giving
the certifications above, the Trustee has reasonably relied on information
provided to it by the following unaffiliated parties: [names of servicer(s),
master servicer, subservicer(s), depositor, trustee, custodian(s)]
| Date: _______________________________________ | ||
| |
|
|
|
U.S.
Bank National Association, as Trustee
|
||
|
[Signature]
|
||
|
[Title]
|
||
U-2
EXHIBIT
V-1
FORM
OF
TRANSFER CERTIFICATE
FOR
TRANSFER FROM RESTRICTED GLOBAL SECURITY
TO
REGULATION S GLOBAL SECURITY
(Transfers
pursuant to § 3.03(h)(iii)
of
the
Agreement)
Re: Xxxxxx
XS
Trust, Series 2007-15N
Reference
is hereby made to the Trust Agreement (the “Agreement”) by and among Structured
Asset Securities Corporation, as Depositor, Aurora Loan Services LLC, as
Master
Servicer, and U.S. Bank National Association, as Trustee, dated as of July
1, 2007. Capitalized terms used but not defined herein shall have the
meanings given to them in the Agreement.
This
letter relates to U.S. $
aggregate
principal amount of securities which are held in the form of a Restricted
Global
Security with DTC in the name of [name of transferor] (the
“Transferor”) to effect the transfer of the Securities in exchange for an
equivalent beneficial interest in a Regulation S Global Security.
In
connection with such request, the Transferor does hereby certify that such
transfer has been effected in accordance with the transfer restrictions set
forth in the Agreement and the securities and in accordance with Rule 904
of
Regulation S, and that:
a. the
offer
of the securities was not made to a person in the United States;
b. at
the
time the buy order was originated, the transferee was outside the United
States
or the Transferor and any person acting on its behalf reasonably believed
that
the transferee was outside the United States;
c. no
directed selling efforts have been made in contravention of the requirements
of
Rule 903 or 904 of Regulation S, as applicable;
d. the
transaction is not part of a plan or scheme to evade the registration
requirements of the United States Securities Act of 1933, as amended;
and
e. the
transferee is not a U.S. person (as defined in Regulation S).
V-1-1
You
are
entitled to rely upon this letter and are irrevocably authorized to produce
this
letter or a copy hereof to any interested party in any administrative or
legal
proceedings or official inquiry with respect to the matters covered hereby.
Terms used in this certificate have the meanings set forth in Regulation
S.
|
[Name of Transferor] |
||
| |
|
|
| By: | ||
|
Name: |
||
| Title: | ||
Date:
,
V-1-2
EXHIBIT
V-2
FORM
OF
TRANSFER CERTIFICATE FOR TRANSFER
FROM
REGULATION S GLOBAL SECURITY
TO
RESTRICTED GLOBAL SECURITY
(Transfers
pursuant to § 3.03(h)(C)
of
the
Agreement)
Re: Xxxxxx
XS
Trust, Series 2007-15N
Reference
is hereby made to the Trust Agreement (the “Agreement”) by and among Structured
Asset Securities Corporation, as Depositor, Aurora Loan Services LLC, as
Master
Servicer, and U.S. Bank National Association, as Trustee, dated as of July
1, 2007. Capitalized terms used but not defined herein shall have the
meanings given to them in the Agreement.
This
letter relates to U.S. $ aggregate
principal amount of securities which are held in the form of a Regulations
S
Global Security in the name of [name of transferor] (the
“Transferor”) to effect the transfer of the securities in exchange for an
equivalent beneficial interest in a Restricted Global Security.
In
connection with such request, and in respect of such securities, the Transferor
does hereby certify that such Securities are being transferred in accordance
with (i) the transfer restrictions set forth in the Agreement and the Securities
and (ii) Rule 144A under the United States Securities Act of 1933, as amended,
to a transferee that the Transferor reasonably believes is purchasing the
Securities for its own account or an account with respect to which the
transferee exercises sole investment discretion, the transferee and any such
account is a qualified institutional buyer within the meaning of Rule 144A,
in a
transaction meeting the requirements of Rule 144A and in accordance with
any
applicable securities laws of any state of the United States or any other
jurisdiction.
|
[Name
of Transferor]
|
||
| |
|
|
| By: | ||
|
Name: |
||
| Title: | ||
Date:
,
U-1
SCHEDULE
A
MORTGAGE
LOAN SCHEDULE
[Intentionally
Omitted]
Schedule
A-1
SCHEDULE
B
SWAP
AGREEMENT SCHEDULED NOTIONAL AMOUNT
AND
RATES
OF PAYMENT
|
Distribution
Date
|
Scheduled
Notional
Amount
($)
|
Rate
of Payment (%)
|
||
|
August
25, 2007
|
0.00
|
0.00
|
||
|
September
25, 2007
|
1,025,602,266.00
|
|
5.43
|
|
|
October
25, 2007
|
992,061,009.00
|
5.45
|
||
|
November
25, 2007
|
959,625,599.00
|
5.40
|
||
|
December
25, 2007
|
928,259,295.00
|
5.38
|
||
|
January
25, 2008
|
897,926,587.00
|
5.38
|
||
|
February
25, 2008
|
868,593,151.00
|
5.35
|
||
|
March
25, 2008
|
840,225,811.00
|
5.32
|
||
|
April
25, 2008
|
812,792,502.00
|
5.28
|
||
|
May
25, 2008
|
786,262,230.00
|
5.25
|
||
|
June
25, 2008
|
760,605,037.00
|
5.22
|
||
|
July
25, 2008
|
735,791,967.00
|
5.19
|
||
|
August
25, 2008
|
711,795,030.00
|
5.17
|
||
|
September
25, 2008
|
684,009,424.00
|
5.15
|
||
|
October
25, 2008
|
657,314,616.00
|
5.15
|
||
|
November
25, 2008
|
631,667,549.00
|
5.15
|
||
|
December
25, 2008
|
607,026,874.00
|
5.15
|
||
|
January
25, 2009
|
583,352,884.00
|
5.16
|
||
|
February
25, 2009
|
560,607,444.00
|
5.17
|
||
|
March
25, 2009
|
538,753,934.00
|
5.18
|
||
|
April
25, 2009
|
517,757,184.00
|
5.20
|
||
|
May
25, 2009
|
497,583,421.00
|
5.21
|
||
|
June
25, 2009
|
478,200,206.00
|
5.23
|
||
|
July
25, 2009
|
459,576,389.00
|
5.26
|
||
|
August
25, 2009
|
441,682,053.00
|
5.28
|
||
|
September
25, 2009
|
421,421,077.00
|
5.30
|
||
|
October
25, 2009
|
402,091,684.00
|
5.34
|
||
|
November
25, 2009
|
383,650,455.00
|
5.35
|
||
|
December
25, 2009
|
366,055,264.00
|
5.37
|
||
|
January
25, 2010
|
349,269,961.00
|
5.38
|
||
|
February
25, 2010
|
333,257,482.00
|
5.39
|
||
|
March
25, 2010
|
317,979,764.00
|
5.40
|
||
|
April
25, 2010
|
303,400,678.00
|
5.41
|
||
|
May
25, 2010
|
289,341,055.00
|
5.43
|
||
|
June
25, 2010
|
276,070,370.00
|
5.44
|
||
|
July
25, 2010
|
262,579,335.00
|
5.45
|
||
|
August
25, 2010
|
205,861,732.00
|
5.46
|
||
|
September
25, 2010
|
196,442,106.00
|
5.48
|
||
|
October
25, 2010
|
187,450,214.00
|
5.49
|
||
|
November
25, 2010
|
178,866,702.00
|
5.50
|
||
|
December
25, 2010
|
170,669,550.00
|
5.52
|
||
|
January
25, 2011
|
162,846,438.00
|
5.53
|
Schedule
B-1
Distribution
Date
|
Scheduled
Notional
Amount
($)
|
|
Rate
of Payment (%)
|
|
|
February
25, 2011
|
155,382,659.00
|
5.54
|
||
|
March
25, 2011
|
148,260,520.00
|
5.55
|
||
|
April
25, 2011
|
141,463,711.00
|
5.56
|
||
|
May
25, 2011
|
134,978,451.00
|
5.57
|
||
|
June
25, 2011
|
128,790,523.00
|
5.58
|
||
|
July
25, 2011
|
122,885,284.00
|
5.58
|
||
|
August
25, 2011
|
117,250,036.00
|
5.59
|
||
|
September
25, 2011
|
111,850,460.00
|
5.60
|
||
|
October
25, 2011
|
106,662,345.00
|
5.62
|
||
|
November
25, 2011
|
101,533,004.00
|
5.63
|
||
|
December
25, 2011
|
96,611,375.00
|
5.64
|
||
|
January
25, 2012
|
25,913,140.00
|
5.64
|
||
|
February
25, 2012
|
24,696,856.00
|
5.65
|
||
|
March
25, 2012
|
23,449,479.00
|
5.66
|
||
|
April
25, 2012
|
22,161,698.00
|
5.67
|
||
|
May
25, 2012
|
20,711,135.00
|
5.67
|
||
|
June
25, 2012
|
19,099,280.00
|
5.68
|
||
|
July
25, 2012
|
2,690,702.00
|
5.68
|
||
|
August
25, 2012 and thereafter
|
0.00
|
0.00
|
Schedule
B-2
SCHEDULE
C
Early
Payment Default Mortgage Loans
[Intentionally
Omitted]
Schedule
B-3
SCHEDULE
D
First
Payment Default Mortgage Loans
[Intentionally
Omitted]
Schedule
B-4
