EXECUTION VERSION
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.,
as Depositor and Master Servicer
and
STATE STREET BANK AND TRUST COMPANY,
as Trustee
POOLING AND SERVICING AGREEMENT
$1,142,373,262.00
Washington Mutual Mortgage Securities Corp.
WaMu Mortgage Pass-Through Certificates
Series 2001-S8
Cut-Off Date: July 1, 2001
TABLE OF CONTENTS
PAGE
ARTICLE I .................................................................6
Section 1.01. Definitions.................................................6
Additional Collateral..................................................6
Additional Collateral Loan.............................................6
Aggregate Certificate Principal Balance................................6
Appraised Value........................................................6
Assignment of Proprietary Lease........................................6
Authenticating Agent...................................................7
Authorized Denomination................................................7
Balloon Loan...........................................................7
Bankruptcy Coverage....................................................7
Bankruptcy Loss........................................................7
Beneficial Holder......................................................8
Benefit Plan Opinion...................................................8
Book-Entry Certificates................................................8
Business Day...........................................................8
Buydown Agreement......................................................8
Buydown Fund...........................................................8
Buydown Fund Account...................................................8
Buydown Loan...........................................................9
Certificate............................................................9
Certificate Account....................................................9
Certificateholder or Holder............................................9
Certificate Insurance Policy...........................................9
Certificate Insurer....................................................9
Certificate Insurer Default............................................9
Certificate Insurer Premium...........................................10
Certificate Insurer Reimbursement Amount..............................10
Certificate Interest Rate.............................................10
Certificate Principal Balance.........................................10
Certificate Register and Certificate Registrar........................10
Class.................................................................10
Class A Certificates..................................................11
Class A-L Regular Interests...........................................11
Class P Certificates..................................................11
Class P Fraction......................................................11
Class P Mortgage Loan.................................................11
Class P-L Regular Interests...........................................11
Class I-A-1 Certificates..............................................11
Class I-A-1-L Regular Interest........................................11
Class I-B-1 Certificates..............................................11
Class I-B-1-L Regular Interest........................................11
Class I-B-2 Certificates..............................................11
Class I-B-2-L Regular Interest........................................11
-i-
TABLE OF CONTENTS
(CONTINUED)
PAGE
Class I-B-3 Certificates..............................................11
Class I-B-3-L Regular Interest........................................11
Class I-B-4 Certificates..............................................12
Class I-B-4-L Regular Interest........................................12
Class I-B-5 Certificates..............................................12
Class I-B-5-L Regular Interest........................................12
Class I-B-6 Certificates..............................................12
Class I-B-6-L Regular Interest........................................12
Class I-P Certificates................................................12
Class I-P Fraction....................................................12
Class I-P Mortgage Loan...............................................12
Class I-P-L Regular Interest..........................................12
Class I-X Certificates................................................12
Class I-X Notional Amount.............................................12
Class I-X-L Regular Interest..........................................13
Class II-A-1 Certificates.............................................13
Class II-A-1-L Regular Interest.......................................13
Class II-A-2 Certificates.............................................13
Class II-A-2-L Regular Interest.......................................13
Class II-A-3 Certificates.............................................13
Class II-A-3 Rounding Account.........................................13
Class II-A-3-L Regular Interest.......................................13
Class II-A-4 Certificates.............................................13
Class II-A-4-L Regular Interest.......................................13
Class II-A-5 Certificates.............................................13
Class II-A-5 Rounding Account.........................................13
Class II-A-5-L Regular Interest.......................................14
Class II-A-6 Certificates.............................................14
Class II-A-6-L Regular Interest.......................................14
Class II-A-7 Certificates.............................................14
Class II-A-7 Rounding Account.........................................14
Class II-A-7-L Regular Interest.......................................14
Class II-A-8 Certificates.............................................14
Class II-A-8-L Regular Interest.......................................14
Class II-A-9 Certificates.............................................14
Class II-A-9 Notional Amount..........................................14
Class II-A-10 Certificates............................................14
Class II-A-10-L Regular Interest......................................15
Class II-A-11 Certificates............................................15
Class II-A-11-L Regular Interest......................................15
Class II-A-12 Certificates............................................15
Class II-A-12-L Regular Interest......................................15
Class II-A-13 Certificates............................................15
Class II-A-13-L Regular Interest......................................15
Class II-A-14 Certificates............................................15
-ii-
TABLE OF CONTENTS
(CONTINUED)
PAGE
Class II-A-14-L Regular Interest......................................15
Class II-A-15 Accretion Termination Date..............................15
Class II-A-15 Accrual Amount..........................................15
Class II-A-15 Certificates............................................15
Class II-A-15-L Regular Interest......................................16
Class II-A-16 Accretion Termination Date..............................16
Class II-A-16 Accrual Amount..........................................16
Class II-A-16 Certificates............................................16
Class II-A-16-L Regular Interest......................................16
Class II-A-17 Certificates............................................16
Class II-A-17-L Regular Interest......................................16
Class II-A-18 Certificates............................................16
Class II-A-18-L Regular Interest......................................16
Class II-A-19 Certificates............................................16
Class II-A-19-L Regular Interest......................................16
Class II-A-20 Certificates............................................16
Class II-A-20-L Regular Interest......................................17
Class II-A-21 Certificates............................................17
Class II-A-21-L Regular Interest......................................17
Class II-A-22 Certificates............................................17
Class II-A-22-L Regular Interest......................................17
Class II-A-22 Accretion Termination Date..............................17
Class II-A-22 Accrual Amount..........................................17
Class II-A-23 Certificates............................................17
Class II-A-23 Notional Amount.........................................17
Class II-A-24 Certificates............................................17
Class II-A-24 Covered Interest Shortfall Amount.......................17
Class II-A-24 Reserve Fund............................................17
Class II-A-24-L Regular Interest......................................18
Class II-A-25 Certificates............................................18
Class II-A-25-L Regular Interest......................................18
Class II-A-26 Certificates............................................18
Class II-A-26-L Regular Interest......................................18
Class II-A-27 Certificates............................................18
Class II-A-27-L Regular Interest......................................18
Class II-A-28 Certificates............................................18
Class II-A-28-L Regular Interest......................................18
Class II-A-29 Certificates............................................18
Class II-A-29-L Regular Interest......................................18
Class II-A-30 Certificates............................................18
Class II-A-30-L Regular Interest......................................19
Class II-B-1 Certificates.............................................19
Class II-B-1-L Regular Interest.......................................19
Class II-B-2 Certificates.............................................19
Class II-B-2-L Regular Interest.......................................19
-iii-
TABLE OF CONTENTS
(CONTINUED)
PAGE
Class II-B-3 Certificates.............................................19
Class II-B-3-L Regular Interest.......................................19
Class II-B-4 Certificates.............................................19
Class II-B-4-L Regular Interest.......................................19
Class II-B-5 Certificates.............................................19
Class II-B-5-L Regular Interest.......................................19
Class II-B-6 Certificates.............................................19
Class II-B-6-L Regular Interest.......................................19
Class II-P Certificates...............................................19
Class II-P Fraction...................................................20
Class II-P Mortgage Loan..............................................20
Class II-P-L Regular Interest.........................................20
Class II-X Certificates...............................................20
Class II-X Notional Amount............................................20
Class II-X-L Regular Interest.........................................20
Class Notional Amount.................................................20
Class Principal Balance...............................................20
Class R-1 Certificates................................................21
Class R-2 Certificates................................................21
Class R-2-L Regular Interest..........................................22
Class X Certificates..................................................22
Class X-L Regular Interests...........................................22
Clean-Up Call Percentage..............................................22
Clearing Agency.......................................................22
Closing Date..........................................................22
Code..................................................................22
Company...............................................................22
Compensating Interest.................................................22
Cooperative...........................................................22
Cooperative Apartment.................................................22
Cooperative Lease.....................................................22
Cooperative Loans.....................................................22
Cooperative Stock.....................................................23
Cooperative Stock Certificate.........................................23
Corporate Trust Office................................................23
Corporation...........................................................23
Corresponding Class...................................................23
Curtailment...........................................................24
Curtailment Shortfall.................................................24
Custodial Account for P&I.............................................24
Custodial Account for Reserves........................................25
Custodial Agreement...................................................25
Custodian.............................................................25
Cut-Off Date..........................................................25
Deceased Holder.......................................................25
-iv-
TABLE OF CONTENTS
(CONTINUED)
PAGE
Deficiency Amount.....................................................25
Definitive Certificates...............................................26
Depositary Agreement..................................................26
Destroyed Mortgage Note...............................................26
Determination Date....................................................26
Disqualified Organization.............................................26
Distribution Date.....................................................26
DTC...................................................................26
DTC Participant.......................................................26
Due Date..............................................................26
Eligible Institution..................................................26
Eligible Investments..................................................27
ERISA.................................................................28
ERISA Restricted Certificate..........................................28
Event of Default......................................................28
Excess Liquidation Proceeds...........................................28
Excluded Curtailment..................................................28
FDIC..................................................................28
FHA...................................................................28
Xxxxxx Xxx............................................................28
Final Maturity Date...................................................28
Fitch.................................................................28
Fraud Coverage........................................................28
Fraud Loss............................................................29
Xxxxxxx Mac...........................................................29
Group I Certificates..................................................29
Group I Credit Support Depletion Date.................................29
Group I Loans.........................................................30
Group I Premium Rate Mortgage Loans...................................30
Group I Senior Liquidation Amount.....................................30
Group I Senior Percentage.............................................30
Group I Senior Prepayment Percentage..................................30
Group I Senior Principal Distribution Amount..........................31
Group I Subordinate Liquidation Amount................................31
Group I Subordinate Percentage........................................31
Group I Subordinate Prepayment Percentage.............................31
Group I Subordinate Principal Distribution Amount.....................31
Group I Subordinate Principal Prepayments Distribution Amount.........32
Group I-B Certificates................................................32
Group I-B-L Regular Interests.........................................32
Group I-L Regular Interests...........................................32
Group II Adjusted Lockout Percentage..................................32
Group II Certificates.................................................32
Group II Credit Support Depletion Date................................32
Group II Loans........................................................33
-v-
TABLE OF CONTENTS
(CONTINUED)
PAGE
Group II Lockout Liquidation Amount...................................33
Group II Lockout Percentage...........................................33
Group II Lockout Prepayment Percentage................................33
Group II Lockout Priority Amount......................................33
Group II Premium Rate Mortgage Loans..................................33
Group II Senior Liquidation Amount....................................33
Group II Senior Percentage............................................33
Group II Senior Prepayment Percentage.................................33
Group II Senior Principal Distribution Amount.........................34
Group II Subordinate Liquidation Amount...............................35
Group II Subordinate Percentage.......................................35
Group II Subordinate Prepayment Percentage............................35
Group II Subordinate Principal Distribution Amount....................35
Group II Subordinate Principal Prepayments Distribution Amount........36
Group II-A Certificates...............................................36
Group II-A-L Regular Interests........................................36
Group II-B Certificates...............................................36
Group II-X-X Regular Interests........................................36
Group II-L Regular Interests..........................................36
Indirect DTC Participants.............................................36
Insurance Proceeds....................................................36
Insured Amount........................................................36
Insured Certificates..................................................36
Interest Distribution Amount..........................................37
Investment Account....................................................37
Investment Depository.................................................37
Junior Subordinate Certificates.......................................37
Last Scheduled Distribution Date......................................37
Late Payment Rate.....................................................37
Lender................................................................37
Living Holder.........................................................37
Liquidated Mortgage Loan..............................................37
Liquidation Principal.................................................37
Liquidation Proceeds..................................................38
Loan Group............................................................38
Loan Group I..........................................................38
Loan Group II.........................................................38
Loan-to-Value Ratio...................................................38
Lowest Class B Owner..................................................38
Master Servicer.......................................................38
Master Servicer Business Day..........................................38
Master Servicing Fee..................................................38
MERS..................................................................38
MERS Loan.............................................................38
MERS(R)System.........................................................38
-vi-
TABLE OF CONTENTS
(CONTINUED)
PAGE
MIN...................................................................38
MOM Loan..............................................................39
Monthly P&I Advance...................................................39
Monthly Payment.......................................................39
Xxxxx'x...............................................................39
Mortgage..............................................................39
Mortgage File.........................................................39
Mortgage Interest Rate................................................42
Mortgage Loan Schedule................................................42
Mortgage Loans........................................................42
Mortgage Note.........................................................42
Mortgage Pool.........................................................43
Mortgaged Property....................................................43
Mortgagor.............................................................43
Nonrecoverable Advance................................................43
Non-Excluded Curtailment..............................................43
Non-U.S. Person.......................................................43
Notice................................................................43
Notice Addresses......................................................43
OTS...................................................................43
Officer's Certificate.................................................43
Opinion of Counsel....................................................44
Original Value........................................................44
Owner.................................................................44
Ownership Interest....................................................44
Pass-Through Entity...................................................44
Pass-Through Rate.....................................................44
Paying Agent..........................................................44
Payoff................................................................44
Payoff Earnings.......................................................45
Payoff Interest.......................................................45
Payoff Period.........................................................45
Percentage Interest...................................................45
Permitted Transferee..................................................46
Person................................................................46
Planned Principal Balance.............................................46
Preference Amount.....................................................46
Prepaid Monthly Payment...............................................46
Primary Insurance Policy..............................................47
Principal Balance.....................................................47
Principal Payment.....................................................47
Principal Payment Amount..............................................47
Principal Prepayment..................................................48
Principal Prepayment Amount...........................................48
Prior Period..........................................................48
-vii-
TABLE OF CONTENTS
(CONTINUED)
PAGE
Pro Rata Allocation...................................................48
Prospectus............................................................49
Purchase Obligation...................................................49
Purchase Price........................................................49
Qualified Insurer.....................................................49
Random Lot............................................................49
Rating Agency.........................................................50
Ratings...............................................................50
Realized Loss.........................................................50
Record Date...........................................................53
Regular Interest Group................................................53
Regular Interests.....................................................53
Relief Act............................................................53
REMIC.................................................................53
REMIC Provisions......................................................53
REMIC I...............................................................53
REMIC I Available Distribution Amount.................................53
REMIC I Distribution Amount...........................................54
REMIC I Regular Interests.............................................66
REMIC I Trust Fund....................................................66
REMIC II..............................................................66
REMIC II Available Distribution Amount................................66
REMIC II Distribution Amount..........................................66
REMIC II Regular Interests............................................67
REMIC II Trust Fund...................................................67
Residual Certificates.................................................68
Residual Distribution Amount..........................................68
Responsible Officer...................................................68
Rounding Accounts.....................................................68
Rounding Amount.......................................................68
Securities Act........................................................68
Security Agreement....................................................68
Selling and Servicing Contract........................................68
Senior Certificates...................................................69
Senior Regular Interests..............................................69
Senior Subordinate Certificates.......................................69
Servicer..............................................................69
Servicing Fee.........................................................69
Servicing Officer.....................................................69
Special Hazard Coverage...............................................69
Special Hazard Loss...................................................70
Special Primary Insurance Policy......................................70
Special Primary Insurance Premium.....................................71
Special Retail Certificates...........................................71
Step Down Percentage..................................................71
-viii-
TABLE OF CONTENTS
(CONTINUED)
PAGE
Stripped Interest Rate................................................71
Subordinate Certificates..............................................71
Subordination Level...................................................71
Substitute Mortgage Loan..............................................71
Surety................................................................71
Surety Bonds..........................................................71
Targeted Principal Balance............................................71
Tax Matters Person....................................................72
Termination Date......................................................72
Termination Payment...................................................72
Transfer..............................................................72
Transferee............................................................72
Transferee Affidavit and Agreement....................................72
Trust.................................................................72
Trust Fund............................................................73
Trustee...............................................................73
Uncollected Interest..................................................73
Uncompensated Interest Shortfall......................................73
Underwriter...........................................................73
Underwriting Standards................................................73
Uninsured Cause.......................................................73
U.S. Person...........................................................74
VA....................................................................74
Washington Mutual Bank Loan...........................................74
Withdrawal Date.......................................................74
ARTICLE II Conveyance of the Trust Funds; REMIC Election and
Designations; Original Issuance of Certificates................74
Section 2.01. Conveyance of the Trust Fund; REMIC Election and
Designations...............................................74
Section 2.02. Acceptance by Trustee......................................79
Section 2.03. Representations and Warranties of the Company
Concerning the Mortgage Loans..............................81
Section 2.04. Acknowledgment of Transfer of Trust Fund;
Authentication of Class R-1 Certificates...................85
Section 2.05. Conveyance of REMIC II; REMIC Election and Designations....86
Section 2.06. Acceptance by Trustee; Authentication of Certificates......89
ARTICLE III Administration and Servicing of Mortgage Loans.................89
Section 3.01. The Company to Act as Master Servicer......................89
Section 3.02. Custodial Accounts.........................................92
Section 3.03. The Investment Account; Eligible Investments...............93
Section 3.04. The Certificate Account....................................94
-ix-
TABLE OF CONTENTS
(CONTINUED)
PAGE
Section 3.05. Permitted Withdrawals from the Certificate Account, the
Investment Account and Custodial Accounts for P&I and
of Buydown Funds from the Buydown Fund Accounts............94
Section 3.06. Maintenance of Primary Insurance Policies; Collections
Thereunder.................................................96
Section 3.07. Maintenance of Hazard Insurance............................96
Section 3.08. Enforcement of Due-on-Sale Clauses; Assumption
Agreements.................................................97
Section 3.09. Realization Upon Defaulted Mortgage Loans..................98
Section 3.10. Trustee to Cooperate; Release of Mortgage Files...........100
Section 3.11. Compensation to the Master Servicer and the Servicers.....101
Section 3.12. Reports to the Trustee; Certificate Account Statement.....101
Section 3.13. Annual Statement as to Compliance.........................101
Section 3.14. Access to Certain Documentation and Information
Regarding the Mortgage Loans..............................102
Section 3.15. Annual Independent Public Accountants' Servicing Report...102
Section 3.16. [Reserved.]...............................................102
Section 3.17. Maintenance of the Class II-A-24 Reserve Fund.............102
Section 3.18. Surety Bonds..............................................103
Section 3.19. [Reserved.]...............................................103
Section 3.20. Assumption or Termination of Selling and Servicing
Contracts by Trustee......................................103
Section 3.21. Maintenance of the Certificate Insurance Policy;
Collections Thereunder....................................103
Section 3.22. Maintenance of the Rounding Accounts; Collections
Thereunder................................................105
ARTICLE IV Payments to Certificateholders; Payment of Expenses...........106
Section 4.01. Distributions to Holders of REMIC I Regular Interests,
Class R-1 Certificateholders and Certificate Insurer......106
Section 4.02. Advances by the Master Servicer; Distribution Reports
to the Trustee............................................106
Section 4.03. Nonrecoverable Advances...................................108
Section 4.04. Distributions to Certificateholders; Payment of Special
Primary Insurance Premiums................................108
Section 4.05. Statements to Certificateholders..........................110
Section 4.06. Principal Distributions on the Special Retail
Certificates..............................................111
ARTICLE V The Certificates..............................................115
-x-
TABLE OF CONTENTS
(CONTINUED)
PAGE
Section 5.01. The Certificates..........................................115
Section 5.02. Certificates Issuable in Classes; Distributions of
Principal and Interest; Authorized Denominations..........121
Section 5.03. Registration of Transfer and Exchange of Certificates.....121
Section 5.04. Mutilated, Destroyed, Lost or Stolen Certificates.........122
Section 5.05. Persons Deemed Owners.....................................122
Section 5.06. Temporary Certificates....................................123
Section 5.07. Book-Entry for Book-Entry Certificates....................123
Section 5.08. Notices to Clearing Agency................................124
Section 5.09. Definitive Certificates...................................124
Section 5.10. Office for Transfer of Certificates.......................125
ARTICLE VI The Company and the Master Servicer...........................125
Section 6.01. Liability of the Company and the Master Servicer..........125
Section 6.02. Merger or Consolidation of the Company, or the Master
Servicer..................................................125
Section 6.03. Limitation on Liability of the Company, the Master
Servicer and Others.......................................125
Section 6.04. The Company and the Master Servicer not to Resign.........126
Section 6.05. Trustee Access............................................126
ARTICLE VII Default.......................................................127
Section 7.01. Events of Default.........................................127
Section 7.02. Trustee to Act; Appointment of Successor..................129
Section 7.03. Notification to Certificateholders........................131
ARTICLE VIII Concerning the Trustee........................................131
Section 8.01. Duties of Trustee.........................................131
Section 8.02. Certain Matters Affecting the Trustee.....................132
Section 8.03. Trustee Not Liable for Certificates or Mortgage Loans.....133
Section 8.04. Trustee May Own Certificates..............................133
Section 8.05. The Master Servicer to Pay Trustee's Fees and Expenses....134
Section 8.06. Eligibility Requirements for Trustee......................134
Section 8.07. Resignation and Removal of Trustee........................134
Section 8.08. Successor Trustee.........................................135
Section 8.09. Merger or Consolidation of Trustee........................135
-xi-
TABLE OF CONTENTS
(CONTINUED)
PAGE
Section 8.10. Appointment of Co-Trustee or Separate Trustee.............136
Section 8.11. Authenticating Agents.....................................137
Section 8.12. Paying Agents.............................................137
ARTICLE IX Termination...................................................138
Section 9.01. Termination Upon Purchase by the Master Servicer or
Liquidation of All Mortgage Loans.........................138
Section 9.02. Additional Termination Requirements.......................140
Section 9.03. Trusts Irrevocable........................................141
ARTICLE X Miscellaneous Provisions......................................141
Section 10.01. Amendment................................................141
Section 10.02. Recordation of Agreement.................................142
Section 10.03. Limitation on Rights of Certificateholders...............142
Section 10.04. Access to List of Certificateholders.....................143
Section 10.05. Governing Law............................................144
Section 10.06. Notices..................................................144
Section 10.07. Severability of Provisions...............................144
Section 10.08. Counterpart Signatures...................................144
Section 10.09. Benefits of Agreement....................................144
Section 10.10. Notices and Copies to Rating Agencies....................145
Exhibit A Form of Certificates (other than Class R-1 and Class R-2
Certificates)
Exhibit B Form of Class R-1 and Class R-2 Certificates
Exhibit C [Reserved]
Exhibit D Mortgage Loan Schedule
Exhibit E Selling And Servicing Contract
Exhibit F Form of Transferor Certificate For Junior Subordinate Certificates
Exhibit G Form of Transferee's Agreement For Junior Subordinate Certificates
Exhibit H Form of Additional Matter Incorporated Into The Certificates
Exhibit I Transferor Certificate
Exhibit J Transferee Affidavit And Agreement
Exhibit K Form of Certificate Insurance Policy
Exhibit L Form of Investment Letter
Exhibit M Form of Trustee's Certification Pursuant to Section 2.02
Exhibit N Officer's Certificate With Respect to ERISA Matters Pursuant to
Section 5.01(d)
Exhibit O Officer's Certificate With Respect to ERISA Matters Pursuant to
Section 5.01(g)
This Pooling and Servicing Agreement, dated and effective as of July 1,
2001 (this "Agreement"), is executed by and between Washington Mutual Mortgage
Securities Corp., as depositor and Master Servicer (the "Company"), and State
Street Bank and Trust Company, a Massachusetts trust company with a corporate
trust office at 000 Xxxxxxxx Xxxxxx, Xxxxxx, XX 00000, as Trustee (the
"Trustee"). Capitalized terms used in this Agreement and not otherwise defined
have the meanings ascribed to such terms in Article I hereof.
PRELIMINARY STATEMENT
The Company at the Closing Date is the owner of the Mortgage Loans and
the other property being conveyed by it to the Trustee for inclusion in the
Trust Fund. On the Closing Date, the Company will acquire the REMIC I Regular
Interests and the Class R-1 Certificates from the REMIC I Trust Fund as
consideration for its transfer to the Trust Fund of the Mortgage Loans and
certain other assets and will be the owner of the REMIC I Regular Interests and
the Class R-1 Certificates. Thereafter on the Closing Date, the Company will
acquire the Certificates (other than the Class R-1 Certificates) from REMIC II
as consideration for its transfer to REMIC II of the REMIC I Regular Interests
and will be the owner of the Certificates. The Company has duly authorized the
execution and delivery of this Agreement to provide for (i) the conveyance to
the Trustee of the Mortgage Loans and the issuance to the Company of the REMIC I
Regular Interests and the Class R-1 Certificates representing in the aggregate
the entire beneficial ownership of REMIC I and (ii) the conveyance to the
Trustee of the REMIC I Regular Interests and the issuance to the Company of the
Certificates (other than the Class R-1 Certificates) representing in the
aggregate the entire beneficial interest of REMIC II. All covenants and
agreements made by the Company and the Trustee herein with respect to the
Mortgage Loans and the other property constituting the assets of REMIC I are for
the benefit of the Holders from time to time of the REMIC I Regular Interests
and the Class R-1 Certificates. All covenants and agreements made by the Company
and the Trustee herein with respect to the REMIC I Regular Interests are for the
benefit of the Holders from time to time of the Certificates (other than the
Class R-1 Certificates) and the Certificate Insurer. The Company is entering
into this Agreement, and the Trustee is accepting the two separate trusts
created hereby, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged.
The Certificates issued hereunder, other than the Junior Subordinate
Certificates, have been offered for sale pursuant to a Prospectus, dated May 25,
2001, and a Prospectus Supplement, dated July 26, 2001, of the Company
(together, the "Prospectus"). The Junior Subordinate Certificates have been
offered for sale pursuant to a Private Placement Memorandum, dated July 30,
2001. The Trust Fund and the REMIC II Trust Fund created hereunder are
collectively intended to be the "Trust" described in the Prospectus and the
Private Placement Memorandum and the Certificates are intended to be the
"Certificates" described therein. The following tables set forth the
designation, type of interest, Certificate Interest Rate, initial Class
Principal Balance and Final Maturity Date for the REMIC I Regular Interests and
the Certificates:
1
REMIC I INTERESTS
Class Designation for
each REMIC I Regular Certificate Initial Class
Interest and the Class Type of Interest Principal Final Maturity
R-1 Certificates Interest Rate (1) Balance Date*
------------------------- ------------ -------------------- -------------------- ------------------------
Class I-A-1-L Regular 6.500% $ 193,536,000.00 August 2016
Class II-A-1-L Regular 6.750% 67,739,000.00 August 2031
Class II-A-2-L Regular 6.750% 82,000,000.00 August 2031
Class II-A-3-L Regular 7.000% 5,000,000.00 August 2031
Class II-A-4-L Regular 7.000% 5,000,000.00 August 2031
Class II-A-5-L Regular 7.000% 1,500,000.00 August 2031
Class II-A-6-L Regular 7.000% 1,500,000.00 August 2031
Class II-A-7-L Regular 7.000% 1,000,000.00 August 2031
Class II-A-8-L Regular 7.000% 1,000,000.00 August 2031
Class II-A-10-L Regular 7.000% 418,900.00 August 2031
Class II-A-11-L Regular 6.750% 134,000,000.00 August 2031
Class II-A-12-L Regular 6.750% 19,010,000.00 August 2031
Class II-A-13-L Regular (2) 571,100.00 August 2031
Class II-A-14-L Regular 6.750% 200,000,000.00 August 2031
Class II-A-15-L Regular 6.750%(3) 17,700,000.00 August 2031
Class II-A-16-L Regular 6.750%(4) 4,252,000.00 August 2031
Class II-A-17-L Regular 6.750% 100,000,000.00 August 2031
Class II-A-18-L Regular 6.750% 20,552,000.00 August 2031
Class II-A-19-L Regular 6.750% 24,130,000.00 August 2031
Class II-A-20-L Regular 6.750% 10,180,000.00 August 2031
Class II-A-21-L Regular 6.750% 20,000,000.00 August 2031
Class II-A-22-L Regular 6.750%(5) 32,250,000.00 August 2031
Class II-A-24-L Regular 6.690% 50,000,000.00 August 2031
Class II-A-25-L Regular 6.750% 93,700,000.00 August 2031
Class II-A-26-L Regular 6.750% 1,100,000.00 August 2031
Class II-A-27-L Regular 6.750% 700,000.00 August 2031
Class II-A-28-L Regular 6.750% 4,500,000.00 August 2031
Class II-A-29-L Regular 7.000% 11,500,000.00 August 2031
Class II-A-30-L Regular (2) 426,000.00 August 2031
Class I-X-L Regular 6.500%(6) ----- August 2016
Class II-X-L Regular 6.750%(6) ----- August 2031
Class I-P-L Regular (2) 1,363,770.00 August 2016
Class II-P-L Regular (2) 3,037,870.00 August 2031
Class I-B-1-L Regular 6.500% 1,385,000.00 August 2016
Class I-B-2-L Regular 6.500% 692,000.00 August 2016
Class I-B-3-L Regular 6.500% 395,000.00 August 2016
Class I-B-4-L Regular 6.500% 197,000.00 August 2016
Class I-B-5-L Regular 6.500% 197,000.00 August 2016
Class I-B-6-L Regular 6.500% 202,547.00 August 2016
Class II-B-1-L Regular 6.750% 15,582,000.00 August 2031
Class II-B-2-L Regular 6.750% 5,666,000.00 August 2031
Class II-B-3-L Regular 6.750% 4,249,000.00 August 2031
Class II-B-4-L Regular 6.750% 2,833,000.00 August 2031
Class II-B-5-L Regular 6.750% 1,416,000.00 August 2031
Class II-B-6-L Regular 6.750% 1,891,975.00 August 2031
Class R-2-L Regular 6.750% 50.00 August 2031
2
Class Designation for
each REMIC I Regular Certificate Initial Class
Interest and the Class Type of Interest Principal Final Maturity
R-1 Certificates Interest Rate (1) Balance Date*
------------------------- ------------ -------------------- -------------------- ------------------------
Class R-1+ Residual 6.750% 50.00 August 2031
* The Distribution Date in the specified month, which is the month
following the month the latest maturing Mortgage Loan in the related
Loan Group (or Loan Groups, as applicable) matures.
+ The Class R-1 Certificates are entitled to receive the applicable
Residual Distribution Amount and any Excess Liquidation Proceeds.
(1) Interest distributed to the REMIC I Regular Interests (other than the
Class P-L, Class II-A-13-L and Class II-A-30-L Regular Interests, which
shall not be entitled to receive any distributions of interest) and the
Class R-1 Certificates on each Distribution Date will have accrued at
the applicable per annum Certificate Interest Rate on the applicable
Class Principal Balance or Class Notional Amount outstanding following
the immediately prior Distribution Date (or, with respect to the first
Distribution Date, as of the Closing Date).
(2) The Class P-L, Class II-A-13-L and Class II-A-30-L Regular Interests
shall not be entitled to receive any distributions of interest.
(3) On each Distribution Date on or before the Class II-A-15 Accretion
Termination Date, an amount equal to the Class II-A-15 Accrual Amount
shall be added to the Class II-A-15-L Principal Balance, and such
amount shall be distributed as principal to certain Classes of Group
II-A-L Regular Interests and shall not be distributed as interest to
the Class II-A-15-L Regular Interest.
(4) On each Distribution Date on or before the Class II-A-16 Accretion
Termination Date, an amount equal to the Class II-A-16 Accrual Amount
shall be added to the Class II-A-16-L Principal Balance, and such
amount shall be distributed as principal to certain Classes of Group
II-A-L Regular Interests and shall not be distributed as interest to
the Class II-A-16-L Regular Interest.
(5) On each Distribution Date on or before the Class II-A-22 Accretion
Termination Date, an amount equal to the Class II-A-22 Accrual Amount
shall be added to the Class II-A-22-L Principal Balance, and such
amount shall be distributed as principal to certain Classes of Group
II-A-L Regular Interests and shall not be distributed as interest to
the Class II-A-22-L Regular Interest.
(6) Each Class of the Class X-L Regular Interests shall accrue interest on
the related Class Notional Amount. The Class X-L Regular Interests
shall not be entitled to receive any distributions of principal.
As provided herein, with respect to REMIC I, the Company will cause an
election to be made on behalf of REMIC I to be treated for federal income tax
purposes as a REMIC. The REMIC I Regular Interests will be designated regular
interests in REMIC I and the Class R-1 Certificates will be designated the sole
class of residual interest in REMIC I, for purposes of the REMIC Provisions.
3
REMIC II INTERESTS
Class Designation for
each Class of Certificates Certificate Initial Class
(other than the Class R-1 Type of Interest Principal Final Maturity
Certificates) Interest Rate (1) Balance Date*
------------------------- ------------ -------------------- -------------------- ------------------------
Class I-A-1 Regular 6.500% $ 193,536,000.00 August 2016
Class II-A-1 Regular 5.750% 67,739,000.00 August 2031
Class II-A-2 Regular 6.000% 82,000,000.00 August 2031
Class II-A-3 Regular 7.000% 5,000,000.00 August 2031
Class II-A-4 Regular 7.000% 5,000,000.00 August 2031
Class II-A-5 Regular 7.000% 1,500,000.00 August 2031
Class II-A-6 Regular 7.000% 1,500,000.00 August 2031
Class II-A-7 Regular 7.000% 1,000,000.00 August 2031
Class II-A-8 Regular 7.000% 1,000,000.00 August 2031
Class II-A-9 Regular 6.750%(2) ----- August 2031
Class II-A-10 Regular 7.000% 418,900.00 August 2031
Class II-A-11 Regular 6.750% 134,000,000.00 August 2031
Class II-A-12 Regular 6.000% 19,010,000.00 August 2031
Class II-A-13 Regular (3) 571,100.00 August 2031
Class II-A-14 Regular 6.750% 200,000,000.00 August 2031
Class II-A-15 Regular 6.750%(4) 17,700,000.00 August 2031
Class II-A-16 Regular 6.750%(5) 4,252,000.00 August 2031
Class II-A-17 Regular 6.750% 100,000,000.00 August 2031
Class II-A-18 Regular 6.000% 20,552,000.00 August 2031
Class II-A-19 Regular 6.750% 24,130,000.00 August 2031
Class II-A-20 Regular 6.750% 10,180,000.00 August 2031
Class II-A-21 Regular 6.750% 20,000,000.00 August 2031
Class II-A-22 Regular 6.750%(6) 32,250,000.00 August 2031
Class II-A-23 Regular 6.750%(2) ----- August 2031
Class II-A-24 Regular 6.690% 50,000,000.00 August 2031
Class II-A-25 Regular 6.750% 93,700,000.00 August 2031
Class II-A-26 Regular 6.750% 1,100,000.00 August 2031
Class II-A-27 Regular 6.750% 700,000.00 August 2031
Class II-A-28 Regular 6.750% 4,500,000.00 August 2031
Class II-A-29 Regular 7.000% 11,500,000.00 August 2031
Class II-A-30 Regular (3) 426,000.00 August 2031
Class I-X Regular 6.500%(2) ----- August 2016
Class II-X Regular 6.750%(2) ----- August 2031
Class I-P Regular (3) 1,363,770.00 August 2016
Class II-P Regular (3) 3,037,870.00 August 2031
Class I-B-1 Regular 6.500% 1,385,000.00 August 2016
Class I-B-2 Regular 6.500% 692,000.00 August 2016
Class I-B-3 Regular 6.500% 395,000.00 August 2016
Class I-B-4 Regular 6.500% 197,000.00 August 2016
4
Class Designation for
each Class of Certificates Certificate Initial Class
(other than the Class R-1 Type of Interest Principal Final Maturity
Certificates) Interest Rate (1) Balance Date*
------------------------- ------------ -------------------- -------------------- ------------------------
Class I-B-5 Regular 6.500% 197,000.00 August 2016
Class I-B-6 Regular 6.500% 202,547.00 August 2016
Class II-B-1 Regular 6.750% 15,582,000.00 August 2031
Class II-B-2 Regular 6.750% 5,666,000.00 August 2031
Class II-B-3 Regular 6.750% 4,249,000.00 August 2031
Class II-B-4 Regular 6.750% 2,833,000.00 August 2031
Class II-B-5 Regular 6.750% 1,416,000.00 August 2031
Class II-B-6 Regular 6.750% 1,891,975.00 August 2031
Class R-2+ Residual 6.750% 50.00 August 2031
* The Distribution Date in the specified month, which is the month
following the month the latest maturing Mortgage Loan in the related
Loan Groups matures.
+ The Class R-2 Certificates are entitled to receive the applicable
Residual Distribution Amount.
(1) Interest distributed on each Distribution Date to the Certificates
(other than the Class P, Class II-A-13 and Class II-A-30 Certificates,
which shall not be entitled to receive any distributions of interest)
will have accrued at the applicable per annum Certificate Interest Rate
on the applicable Class Principal Balance or Class Notional Amount
outstanding following the immediately prior Distribution Date (or, with
respect to the first Distribution Date, as of the Closing Date).
(2) The Class II-A-9 and Class II-A-23 Certificates and each Class of the
Class X Certificates shall accrue interest on the related Class
Notional Amount. The Class II-A-9 Class II-A-23 and Class X
Certificates shall not be entitled to receive any distributions of
principal.
(3) The Class P, Class II-A-13 and Class II-A-30 Certificates shall not be
entitled to receive any distributions of interest.
(4) On each Distribution Date on or before the Class II-A-15 Accretion
Termination Date, an amount equal to the Class II-A-15 Accrual Amount
shall be added to the Class II-A-15 Principal Balance, and such amount
shall be distributed as principal to certain Classes of Group II-A
Certificates and shall not be distributed as interest to the Class
II-A-15 Certificates.
(5) On each Distribution Date on or before the Class II-A-16 Accretion
Termination Date, an amount equal to the Class II-A-16 Accrual Amount
shall be added to the Class II-A-16 Principal Balance, and such amount
shall be distributed as principal to certain Classes of Group II-A
Certificates and shall not be distributed as interest to the Class
II-A-16 Certificates.
(6) On each Distribution Date on or before the Class II-A-22 Accretion
Termination Date, an amount equal to the Class II-A-22 Accrual Amount
shall be added to the Class II-A-22 Principal Balance, and such amount
shall be distributed as principal to certain Classes of Group II-A
Certificates and shall not be distributed as interest to the Class
II-A-22 Certificates.
As provided herein, with respect to REMIC II, the Company will cause an
election to be made on behalf of REMIC II to be treated for federal income tax
purposes as a REMIC. The Certificates (other than the Class R-1 and Class R-2
Certificates) will be designated regular interests in REMIC II, and the Class
R-2 Certificates will be designated the sole class of residual interest in REMIC
II, for purposes of the REMIC Provisions. As of the Cut-Off Date (after giving
effect to any Excluded Curtailments), the Mortgage Loans have an aggregate
Principal Balance of $1,142,373,262.30 and the Certificates have an Aggregate
Certificate Principal Balance of $1,142,373,262.00.
W I T N E S S E T H :
WHEREAS, the Company is a corporation duly organized and existing under
and by virtue of the laws of the State of Delaware and has full corporate power
and authority to enter into this Agreement and to undertake the obligations
undertaken by it herein;
WHEREAS, the Company is the owner of the Mortgage Loans identified in
the Mortgage Loan Schedule hereto having unpaid Principal Balances on the
Cut-Off Date as stated therein;
5
WHEREAS, the Company has been duly authorized to create a trust (the
"Trust Fund") to (i) hold the Mortgage Loans and certain other property and (ii)
provide for the creation and conveyance of the REMIC I Regular Interests and the
issuance of the Class R-1 Certificates;
WHEREAS, the Company has been duly authorized to create a trust ("REMIC
II") to (i) hold the REMIC I Regular Interests and (ii) provide for the issuance
of the Certificates (other than the Class R-1 Certificates); and
WHEREAS, the Trustee is a Massachusetts trust company duly organized
and existing under the laws of The Commonwealth of Massachusetts and has full
power and authority to enter into this Agreement.
NOW, THEREFORE, in order to declare the terms and conditions upon which
the REMIC I Regular Interests are to be created and conveyed and the
Certificates are to be issued, authenticated and delivered, and in consideration
of the premises and of the purchase and acceptance of the Certificates by the
Holders thereof, the Company covenants and agrees with the Trustee, for the
equal and proportionate benefit of the respective Holders from time to time of
the REMIC I Regular Interests, the Certificates and the Certificate Insurer, as
applicable, as follows:
ARTICLE I
Section 1.01. Definitions.
Whenever used in this Agreement, the following words and phrases,
unless the context otherwise requires, shall have the following meanings:
Additional Collateral: Any real or personal property, securities, cash,
instruments, contracts (including any third-party guarantee) or other documents
constituting or evidencing collateral pledged as additional security for a
Mortgage Loan (other than the related Mortgaged Property).
Additional Collateral Loan: A Mortgage Loan secured by, in addition to
the related Mortgaged Property, Additional Collateral.
Aggregate Certificate Principal Balance: At any given time, the sum of
the then current Class Principal Balances of the Certificates.
Appraised Value: The amount set forth in an appraisal made by or for
(a) the mortgage originator in connection with its origination of each Mortgage
Loan, (b) with respect to a Mortgage Loan originated to refinance mortgage debt,
the originator of such mortgage debt or (c) the Servicer, at any time, in
accordance with the Selling and Servicing Contract.
Assignment of Proprietary Lease: With respect to a Cooperative Loan,
the assignment or mortgage of the related Cooperative Lease from the Mortgagor
to the originator of the Cooperative Loan.
6
Authenticating Agent: Any authenticating agent appointed by the Trustee
pursuant to Section 8.11.
Authorized Denomination: With respect to the Class I-A-1, Class II-A-1,
Class II-A-2, Class II-A-10, Class II-A-11, Class II-A-12, Class II-A-13, Class
II-A-14, Class II-A-15, Class II-A-16, Class II-A-17, Class II-A-18, Class
II-A-19, Class II-A-20, Class II-A-21, Class II-A-22, Class II-A-24, Class
II-A-25, Class II-A-26, Class II-A-27, Class II-A-28, Class II-A-29, Class
II-A-30, Class P and Subordinate Certificates, an initial Certificate Principal
Balance equal to $25,000 and multiples of $1 in excess thereof, except that one
Certificate of each Class of the Junior Subordinate Certificates may be issued
in an amount that is not an integral multiple of $1. With respect to the Class
II-A-4, Class II-A-6 and Class II-A-8 Certificates, an initial Certificate
Principal Balance equal to $1,000 and multiples of $1 in excess thereof. With
respect to the Class II-A-3, Class II-A-5 and Class II-A-7 Certificates, an
initial Certificate Principal Balance equal to $1,000 and multiples of $1,000 in
excess thereof. With respect to the Class II-A-9, Class II-A-23 and Class X
Certificates, a Class Notional Amount as of the Cut-Off Date equal to $100,000
and multiples of $1 in excess thereof. With respect to each Class of the
Residual Certificates, one Certificate with a Percentage Interest equal to 0.01%
and one Certificate with a Percentage Interest equal to 99.99%.
Balloon Loan: Any Mortgage Loan which, by its terms, does not fully
amortize the principal balance thereof by its stated maturity and thus requires
a payment at the stated maturity larger than the monthly payments due
thereunder.
Bankruptcy Coverage: With respect to Loan Group I, $100,000 less (a)
any scheduled or permissible reduction in the amount of Bankruptcy Coverage for
such Loan Group pursuant to this definition and (b) Bankruptcy Losses allocated
to the Group I-L Regular Interests.
With respect to Loan Group II, $100,000 less (a) any scheduled or
permissible reduction in the amount of Bankruptcy Coverage for such Loan Group
pursuant to this definition and (b) Bankruptcy Losses allocated to the Group
II-L Regular Interests.
The Bankruptcy Coverage for Loan Group I and the Bankruptcy Coverage
for Loan Group II may be reduced upon written confirmation from the Rating
Agencies that such reduction will not adversely affect the then current ratings
assigned to the Certificates by the Rating Agencies (determined in the case of
the Insured Certificates, without giving effect to the Certificate Insurance
Policy).
Bankruptcy Loss: A loss on a Mortgage Loan arising out of (i) a
reduction in the scheduled Monthly Payment for such Mortgage Loan by a court of
competent jurisdiction in a case under the United States Bankruptcy Code, other
than any such reduction that arises out of clause (ii) of this definition of
"Bankruptcy Loss," including, without limitation, any such reduction that
results in a permanent forgiveness of principal, or (ii) with respect to any
Mortgage Loan, a valuation, by a court of competent jurisdiction in a case under
such Bankruptcy Code, of the related Mortgaged Property in an amount less than
the then outstanding Principal Balance of such Mortgage Loan.
7
Beneficial Holder: A Person holding a beneficial interest in any
Book-Entry Certificate as or through a DTC Participant or an Indirect DTC
Participant or a Person holding a beneficial interest in any Definitive
Certificate.
Benefit Plan Opinion: With respect to any Certificate presented for
registration in the name of any Person, an Opinion of Counsel acceptable to and
in form and substance satisfactory to the Trustee and the Company to the effect
that the purchase or holding of such Certificate is permissible under applicable
law, will not constitute or result in a non-exempt prohibited transaction under
Section 406 of ERISA or Section 4975 of the Code, and will not subject the
Trustee, the Master Servicer or the Company to any obligation or liability
(including obligations or liabilities under Section 406 of ERISA or Section 4975
of the Code) in addition to those undertaken in this Agreement, which Opinion of
Counsel shall not be an expense of the Trustee, the Master Servicer or the
Company.
Book-Entry Certificates: The Class A, Class X, Class P and Senior
Subordinate Certificates, beneficial ownership and transfers of which shall be
made through book entries as described in Section 5.07.
Business Day: Any day other than a Saturday, a Sunday, or a day on
which banking institutions in Chicago, Illinois, Boston, Massachusetts, New
York, New York or (with respect to matters hereunder affecting the Certificate
Insurer) the city in which the Certificate Insurer is located are authorized or
obligated by law or executive order to be closed.
Buydown Agreement: An agreement between a Person and a Mortgagor
pursuant to which such Person has provided a Buydown Fund.
Buydown Fund: A fund provided by the originator of a Mortgage Loan or
another Person with respect to a Buydown Loan which provides an amount
sufficient to subsidize regularly scheduled principal and interest payments due
on such Buydown Loan for a period. Buydown Funds may be (i) funded at the par
values of future payment subsidies, or (ii) funded in an amount less than the
par values of future payment subsidies, and determined by discounting such par
values in accordance with interest accruing on such amounts, in which event they
will be deposited in an account bearing interest. Buydown Funds may be held in a
separate Buydown Fund Account or may be held in a Custodial Account for P&I or a
Custodial Account for Reserves and monitored by a Servicer.
Buydown Fund Account: A separate account or accounts created and
maintained pursuant to Section 3.02 (a) with the corporate trust department of
the Trustee or another financial institution approved by the Master Servicer,
(b) within FDIC insured accounts (or other accounts with comparable insurance
coverage acceptable to the Rating Agencies) created, maintained and monitored by
a Servicer or (c) in a separate non-trust account without FDIC or other
insurance in an Eligible Institution. Such account or accounts may be
non-interest bearing or may bear interest. In the event that a Buydown Fund
Account is established pursuant to clause (b) of the preceding sentence, amounts
held in such Buydown Fund Account shall not exceed the level of deposit
insurance coverage on such account; accordingly, more than one Buydown Fund
Account may be established.
8
Buydown Loan: A Mortgage Loan for which the Mortgage Interest Rate has
been subsidized through a Buydown Fund provided at the time of origination of
such Mortgage Loan.
Certificate: Any one of the Certificates issued pursuant to this
Agreement, executed by the Trustee and authenticated by or on behalf of the
Trustee hereunder in substantially one of the forms set forth in Exhibit A and B
hereto. The additional matter appearing in Exhibit H shall be deemed
incorporated into Exhibit A as though set forth at the end of such Exhibit.
Certificate Account: The separate trust account created and maintained
with the Trustee, the Investment Depository or any other bank or trust company
acceptable to the Rating Agencies and the Certificate Insurer which is
incorporated under the laws of the United States or any state thereof pursuant
to Section 3.04, which account shall bear a designation clearly indicating that
the funds deposited therein are held in trust for the benefit of the Trustee on
behalf of the Certificateholders or any other account serving a similar function
acceptable to the Rating Agencies and the Certificate Insurer. Funds in the
Certificate Account in respect of the Mortgage Loans in each of the Loan Groups
and amounts withdrawn from the Certificate Account attributable to each of such
Loan Groups shall be accounted for separately. Funds in the Certificate Account
may be invested in Eligible Investments pursuant to Section 3.04(b) and
reinvestment earnings thereon shall be paid to the Master Servicer as additional
servicing compensation. Funds deposited in the Certificate Account (exclusive of
the Master Servicing Fee) shall be held in trust for the Certificateholders and
the Certificate Insurer and for the uses and purposes set forth in Section 2.01,
Section 3.04, Section 3.05, Section 4.01 and Section 4.04.
Certificateholder or Holder: With respect to the Certificates, the
person in whose name a Certificate is registered in the Certificate Register,
except that, solely for the purposes of giving any consent pursuant to this
Agreement, any Certificate registered in the name of the Company, the Master
Servicer or any affiliate thereof shall be deemed not to be outstanding and the
Percentage Interest evidenced thereby shall not be taken into account in
determining whether the requisite percentage of Percentage Interests necessary
to effect any such consent has been obtained; provided, that the Trustee may
conclusively rely upon an Officer's Certificate to determine whether any Person
is an affiliate of the Company or the Master Servicer. With respect to the REMIC
I Regular Interests, the owner of the REMIC I Regular Interests, which as of the
Closing Date shall be the Trustee.
Certificate Insurance Policy: The certificate guaranty insurance policy
no. AB0479BE issued by the Certificate Insurer in respect of the Insured
Certificates, a copy of which is attached hereto as Exhibit K.
Certificate Insurer: Ambac Assurance Corporation, a Wisconsin-domiciled
stock insurance corporation.
Certificate Insurer Default: The existence and continuance of any of
the following: (a) a failure by the Certificate Insurer to make a payment
required under the Certificate Insurance Policy in accordance with its terms;
(b) the entry of a decree or order of a court or agency having jurisdiction in
respect of the Certificate Insurer in an involuntary case under any present or
future Federal or state bankruptcy, insolvency or similar law appointing a
conservator or receiver or liquidator or other similar official of the
Certificate Insurer or of any substantial part of its
9
property, or the entering of an order for the winding up or liquidation of the
affairs of the Certificate Insurer and the continuance of any such decree or
order undischarged or unstayed and in force for a period of 90 consecutive days;
(c) the Certificate Insurer shall consent to the appointment of a conservator or
receiver or liquidator or other similar official in any insolvency, readjustment
of debt, marshaling of assets and liabilities or similar proceedings of or
relating to the Certificate Insurer or of or relating to all or substantially
all of its property; or (d) the Certificate Insurer shall admit in writing its
inability to pay its debts generally as they become due, file a petition to take
advantage of or otherwise voluntarily commence a case or proceeding under any
applicable bankruptcy, insolvency, reorganization or other similar statute, make
an assignment for the benefit of its creditors, or voluntarily suspend payment
of its obligations.
Certificate Insurer Premium: For any Distribution Date, an amount equal
to the product of 1/12 of 0.06% and the Class II-A-24 Principal Balance
immediately prior to such Distribution Date.
Certificate Insurer Reimbursement Amount: For any Distribution Date,
the sum of (a) all amounts previously paid by the Certificate Insurer in respect
of Insured Amounts for which the Certificate Insurer has not been reimbursed
prior to such Distribution Date and (b) interest accrued on the foregoing at the
Late Payment Rate from the date the Trustee received such amounts paid by the
Certificate Insurer.
Certificate Interest Rate: For each Class of Certificates and REMIC I
Regular Interests, the per annum rate set forth as the Certificate Interest Rate
for such Class in the Preliminary Statement hereto.
Certificate Principal Balance: For each Certificate of any Class, the
portion of the related Class Principal Balance, if any, represented by such
Certificate.
Certificate Register and Certificate Registrar: The register maintained
and the registrar appointed, respectively, pursuant to Section 5.03.
Class: All REMIC I Regular Interests or the Class R-1 Certificates
having the same priority and rights to payments on the Mortgage Loans from the
REMIC I Available Distribution Amount, and all REMIC II Regular Interests or the
Class R-2 Certificates having the same priority and rights to payments on the
REMIC I Regular Interests from the REMIC II Available Distribution Amount, as
applicable, which REMIC I Regular Interests, REMIC II Regular Interests and
Residual Certificates, as applicable, shall be designated as a separate Class,
and which, in the case of the Certificates, shall be set forth in the applicable
forms of Certificates attached hereto as Exhibits A and B. Each Class of REMIC I
Regular Interests and the Class R-1 Certificates shall be entitled to receive
the amounts allocated to such Class pursuant to the definition of "REMIC I
Distribution Amount" only to the extent of the REMIC I Available Distribution
Amount for such Distribution Date remaining after distributions in accordance
with prior clauses of the definition of "REMIC I Distribution Amount" and each
Class of REMIC II Regular Interests and the Class R-2 Certificates shall be
entitled to receive the amounts allocated to such Class pursuant to the
definition of "REMIC II Distribution Amount" only to the extent of the REMIC II
Available Distribution Amount for such Distribution Date remaining after
10
distributions in accordance with prior clauses of the definition of "REMIC II
Distribution Amount."
Class A Certificates: The Class I-A-1 and Group II-A Certificates.
Class A-L Regular Interests: The Class I-A-1-L and Group II-A-L Regular
Interests.
Class P Certificates: The Class I-P and Class II-P Certificates. As
such term is used herein, the Class I-P Certificates are "related" to the Class
I-P Mortgage Loans and the Class II-P Certificates are "related" to the Class
II-P Mortgage Loans.
Class P Fraction: The Class I-P or Class II-P Fraction, as applicable.
Class P Mortgage Loan: Any Class I-P or Class II-P Mortgage Loan.
Class P-L Regular Interests: The Class I-P-L and Class II-P-L Regular
Interests. As such term is used herein, the Class I-P-L Regular Interest is
"related" to the Class I-P Mortgage Loans and the Class II-P-L Regular Interest
is "related" to the Class II-P Mortgage Loans.
Class I-A-1 Certificates: The Certificates designated as "Class I-A-1"
on the face thereof in substantially the form attached hereto as Exhibit A.
Class I-A-1-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class I-B-1 Certificates: The Certificates designated as "Class I-B-1"
on the face thereof in substantially the form attached hereto as Exhibit A.
Class I-B-1-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class I-B-2 Certificates: The Certificates designated as "Class I-B-2"
on the face thereof in substantially the form attached hereto as Exhibit A.
Class I-B-2-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class I-B-3 Certificates: The Certificates designated as "Class I-B-3"
on the face thereof in substantially the form attached hereto as Exhibit A.
Class I-B-3-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
11
Class I-B-4 Certificates: The Certificates designated as "Class I-B-4"
on the face thereof in substantially the form attached hereto as Exhibit A.
Class I-B-4-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class I-B-5 Certificates: The Certificates designated as "Class I-B-5"
on the face thereof in substantially the form attached hereto as Exhibit A.
Class I-B-5-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class I-B-6 Certificates: The Certificates designated as "Class I-B-6"
on the face thereof in substantially the form attached hereto as Exhibit A.
Class I-B-6-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class I-P Certificates: The Certificates designated as "Class I-P" on
the face thereof in substantially the form attached hereto as Exhibit A.
Class I-P Fraction: For each Class I-P Mortgage Loan, a fraction, the
numerator of which is 6.500% less the Pass-Through Rate on such Class I-P
Mortgage Loan and the denominator of which is 6.500%.
Class I-P Mortgage Loan: Any Group I Loan with a Pass-Through Rate of
less than 6.500% per annum.
Class I-P-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class I-X Certificates: The Certificates designated as "Class I-X" on
the face thereof in substantially the form attached hereto as Exhibit A.
Class I-X Notional Amount: With respect to any Distribution Date, the
product of (x) the aggregate scheduled principal balance, as of the second
preceding Due Date after giving effect to payments scheduled to be received as
of such Due Date, whether or not received (and after giving effect to (i)
Principal Prepayments, Monthly P&I Advances and the principal portion of
Realized Losses applied prior to such Due Date and (ii) any Excluded
Curtailments), or with respect to the initial Distribution Date, as of the
Cut-Off Date, of the Group I Premium Rate Mortgage Loans and (y) a fraction, the
numerator of which is the weighted average of the Stripped Interest Rates for
the Group I Premium Rate Mortgage Loans as of such Due Date and the denominator
of which is 6.500%.
12
Class I-X-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-A-1 Certificates: The Certificates designated as "Class
II-A-1" on the face thereof in substantially the form attached hereto as Exhibit
A.
Class II-A-1-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-A-2 Certificates: The Certificates designated as "Class
II-A-2" on the face thereof in substantially the form attached hereto as Exhibit
A.
Class II-A-2-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-A-3 Certificates: The Certificates designated as "Class
II-A-3" on the face thereof in substantially the form attached hereto as Exhibit
A.
Class II-A-3 Rounding Account: The separate trust account maintained
with the Trustee pursuant to Section 3.22, which account shall bear a
designation clearly indicating that the funds deposited therein are held in
trust for the benefit of the Trustee on behalf of the Class II-A-3
Certificateholders, or any other account serving a similar function acceptable
to the Rating Agencies, and which account provides that the Trustee may make, or
cause to be made, withdrawals as provided in Section 3.22 hereof, to the extent
of the amount then remaining in the Class II-A-3 Rounding Account.
Class II-A-3-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-A-4 Certificates: The Certificates designated as "Class
II-A-4" on the face thereof in substantially the form attached hereto as Exhibit
A.
Class II-A-4-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-A-5 Certificates: The Certificates designated as "Class
II-A-5" on the face thereof in substantially the form attached hereto as Exhibit
A.
Class II-A-5 Rounding Account: The separate trust account maintained
with the Trustee pursuant to Section 3.22, which account shall bear a
designation clearly indicating that the funds deposited therein are held in
trust for the benefit of the Trustee on behalf of the Class II-A-5
Certificateholders, or any other account serving a similar function acceptable
to the Rating Agencies, and which account provides that the Trustee may make, or
cause to be made,
13
withdrawals as provided in Section 3.22 hereof, to the extent of the amount then
remaining in the Class II-A-5 Rounding Account.
Class II-A-5-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-A-6 Certificates: The Certificates designated as "Class
II-A-6" on the face thereof in substantially the form attached hereto as Exhibit
A.
Class II-A-6-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-A-7 Certificates: The Certificates designated as "Class
II-A-7" on the face thereof in substantially the form attached hereto as Exhibit
A.
Class II-A-7 Rounding Account: The separate trust account maintained
with the Trustee pursuant to Section 3.22, which account shall bear a
designation clearly indicating that the funds deposited therein are held in
trust for the benefit of the Trustee on behalf of the Class II-A-7
Certificateholders, or any other account serving a similar function acceptable
to the Rating Agencies, and which account provides that the Trustee may make, or
cause to be made, withdrawals as provided in Section 3.22 hereof, to the extent
of the amount then remaining in the Class II-A-7 Rounding Account.
Class II-A-7-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-A-8 Certificates: The Certificates designated as "Class
II-A-8" on the face thereof in substantially the form attached hereto as Exhibit
A.
Class II-A-8-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-A-9 Certificates: The Certificates designated as "Class
II-A-9" on the face thereof in substantially the form attached hereto as Exhibit
A.
Class II-A-9 Notional Amount: For any Distribution Date, the sum of (i)
the Class II-A-1 Principal Balance immediately before that Distribution Date
multiplied by 14.8148148148%, (ii) the Class II-A-2 Principal Balance
immediately before that Distribution Date multiplied by 11.1111111111% and (iii)
the Class II-A-12 Principal Balance immediately before that Distribution Date
multiplied by 11.1111111111%.
Class II-A-10 Certificates: The Certificates designated as "Class
II-A-10" on the face thereof in substantially the form attached hereto as
Exhibit A.
14
Class II-A-10-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-A-11 Certificates: The Certificates designated as "Class
II-A-11" on the face thereof in substantially the form attached hereto as
Exhibit A.
Class II-A-11-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-A-12 Certificates: The Certificates designated as "Class
II-A-12" on the face thereof in substantially the form attached hereto as
Exhibit A.
Class II-A-12-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-A-13 Certificates: The Certificates designated as "Class
II-A-13" on the face thereof in substantially the form attached hereto as
Exhibit A.
Class II-A-13-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-A-14 Certificates: The Certificates designated as "Class
II-A-14" on the face thereof in substantially the form attached hereto as
Exhibit A.
Class II-A-14-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-A-15 Accretion Termination Date: The earlier to occur of (i)
the Distribution Date on which either the Class II-A-14 or Class II-A-15
Principal Balance has been reduced to zero and (ii) the Group II Credit Support
Depletion Date.
Class II-A-15 Accrual Amount: For any Distribution Date, an amount
equal to the amounts that would be payable to the Class II-A-15-L Regular
Interest as interest on such Distribution Date pursuant to clauses (I)(b)(ii)
and (I)(b)(iii)(a) of the definition of "REMIC I Distribution Amount" without
regard to the provisos in such clauses. Notwithstanding the foregoing, for any
Distribution Date after the Class II-A-15 Accretion Termination Date, the Class
II-A-15 Accrual Amount shall be zero.
Class II-A-15 Certificates: The Certificates designated as "Class
II-A-15" on the face thereof in substantially the form attached hereto as
Exhibit A.
15
Class II-A-15-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-A-16 Accretion Termination Date: The earlier to occur of (i)
the Distribution Date on which the Class II-A-14 and Class II-A-15 Principal
Balances have each been reduced to zero and (ii) the Group II Credit Support
Depletion Date.
Class II-A-16 Accrual Amount: For any Distribution Date, an amount
equal to the amounts that would be payable to the Class II-A-16-L Regular
Interest as interest on such Distribution Date pursuant to clauses (I)(b)(ii)
and (I)(b)(iii)(a) of the definition of "REMIC I Distribution Amount" without
regard to the provisos in such clauses. Notwithstanding the foregoing, for any
Distribution Date after the Class II-A-16 Accretion Termination Date, the Class
II-A-16 Accrual Amount shall be zero.
Class II-A-16 Certificates: The Certificates designated as "Class
II-A-16" on the face thereof in substantially the form attached hereto as
Exhibit A.
Class II-A-16-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-A-17 Certificates: The Certificates designated as "Class
II-A-17" on the face thereof in substantially the form attached hereto as
Exhibit A.
Class II-A-17-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-A-18 Certificates: The Certificates designated as "Class
II-A-18" on the face thereof in substantially the form attached hereto as
Exhibit A.
Class II-A-18-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-A-19 Certificates: The Certificates designated as "Class
II-A-19" on the face thereof in substantially the form attached hereto as
Exhibit A.
Class II-A-19-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-A-20 Certificates: The Certificates designated as "Class
II-A-20" on the face thereof in substantially the form attached hereto as
Exhibit A.
16
Class II-A-20-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-A-21 Certificates: The Certificates designated as "Class
II-A-21" on the face thereof in substantially the form attached hereto as
Exhibit A.
Class II-A-21-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-A-22 Certificates: The Certificates designated as "Class
II-A-22" on the face thereof in substantially the form attached hereto as
Exhibit A.
Class II-A-22-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-A-22 Accretion Termination Date: The earlier to occur of (i)
the Distribution Date on which the aggregate Class Principal Balance of the
Class II-A-11, Class II-A-14, Class II-A-15, Class II-A-16, Class II-A-17, Class
II-A-18, Class II-A-19, Class II-A-20, Class II-A-21, Class II-A-29 and Class
II-A-30 Certificates has been reduced to zero and (ii) the Group II Credit
Support Depletion Date.
Class II-A-22 Accrual Amount: For any Distribution Date, an amount
equal to the amounts that would be payable to the Class II-A-22-L Regular
Interest as interest on such Distribution Date pursuant to clauses (I)(b)(ii)
and (I)(b)(iii)(a) of the definition of "REMIC I Distribution Amount" without
regard to the provisos in such clauses. Notwithstanding the foregoing, for any
Distribution Date after the Class II-A-22 Accretion Termination Date, the Class
II-A-22 Accrual Amount shall be zero.
Class II-A-23 Certificates: The Certificates designated as "Class
II-A-23" on the face thereof in substantially the form attached hereto as
Exhibit A.
Class II-A-23 Notional Amount: For any Distribution Date, the Class
II-A-18 Principal Balance immediately before that Distribution Date multiplied
by 11.1111111111%.
Class II-A-24 Certificates: The Certificates designated as "Class
II-A-24" on the face thereof in substantially the form attached hereto as
Exhibit A.
Class II-A-24 Covered Interest Shortfall Amount: For any Distribution
Date, an amount equal to the portion of the Uncompensated Interest Shortfall, if
any, for such Distribution Date that is allocated to the Class II-A-24-L Regular
Interests pursuant to the definition of "Uncompensated Interest Shortfall."
Class II-A-24 Reserve Fund: The separate trust account maintained by
the Master Servicer and held by the Trustee, which account shall bear a
designation clearly indicating that the funds deposited therein are held in
trust for the benefit of the Trustee on behalf of the Class
17
II-A-24 Certificateholders and the Certificate Insurer, or any other account
serving a similar function acceptable to the Rating Agencies and the Certificate
Insurer, and which account provides that the Trustee may make, or cause to be
made, withdrawals therefrom in accordance with Section 3.17.
Class II-A-24-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-A-25 Certificates: The Certificates designated as "Class
II-A-25" on the face thereof in substantially the form attached hereto as
Exhibit A.
Class II-A-25-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-A-26 Certificates: The Certificates designated as "Class
II-A-26" on the face thereof in substantially the form attached hereto as
Exhibit A.
Class II-A-26-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-A-27 Certificates: The Certificates designated as "Class
II-A-27" on the face thereof in substantially the form attached hereto as
Exhibit A.
Class II-A-27-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-A-28 Certificates: The Certificates designated as "Class
II-A-28" on the face thereof in substantially the form attached hereto as
Exhibit A.
Class II-A-28-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-A-29 Certificates: The Certificates designated as "Class
II-A-29" on the face thereof in substantially the form attached hereto as
Exhibit A.
Class II-A-29-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-A-30 Certificates: The Certificates designated as "Class
II-A-30" on the face thereof in substantially the form attached hereto as
Exhibit A.
18
Class II-A-30-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-B-1 Certificates: The Certificates designated as "Class
II-B-1" on the face thereof in substantially the form attached hereto as Exhibit
A.
Class II-B-1-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-B-2 Certificates: The Certificates designated as "Class
II-B-2" on the face thereof in substantially the form attached hereto as Exhibit
A.
Class II-B-2-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-B-3 Certificates: The Certificates designated as "Class
II-B-3" on the face thereof in substantially the form attached hereto as Exhibit
A.
Class II-B-3-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-B-4 Certificates: The Certificates designated as "Class
II-B-4" on the face thereof in substantially the form attached hereto as Exhibit
A.
Class II-B-4-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-B-5 Certificates: The Certificates designated as "Class
II-B-5" on the face thereof in substantially the form attached hereto as Exhibit
A.
Class II-B-5-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-B-6 Certificates: The Certificates designated as "Class
II-B-6" on the face thereof in substantially the form attached hereto as Exhibit
A.
Class II-B-6-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-P Certificates: The Certificates designated as "Class II-P" on
the face thereof in substantially the form attached hereto as Exhibit A.
19
Class II-P Fraction: For each Class II-P Mortgage Loan, a fraction, the
numerator of which is 6.750% less the Pass-Through Rate on such Class II-P
Mortgage Loan and the denominator of which is 6.750%.
Class II-P Mortgage Loan: Any Group II Loan with a Pass-Through Rate of
less than 6.750% per annum.
Class II-P-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class II-X Certificates: The Certificates designated as "Class II-X" on
the face thereof in substantially the form attached hereto as Exhibit A.
Class II-X Notional Amount: With respect to any Distribution Date, the
product of (x) the aggregate scheduled principal balance, as of the second
preceding Due Date after giving effect to payments scheduled to be received as
of such Due Date, whether or not received (and after giving effect to (i)
Principal Prepayments, Monthly P&I Advances and the principal portion of
Realized Losses applied prior to such Due Date and (ii) any Excluded
Curtailments), or with respect to the initial Distribution Date, as of the
Cut-Off Date, of the Group II Premium Rate Mortgage Loans and (y) a fraction,
the numerator of which is the weighted average of the Stripped Interest Rates
for the Group II Premium Rate Mortgage Loans as of such Due Date and the
denominator of which is 6.750%.
Class II-X-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class Notional Amount: With respect to any of the Class X Certificates,
the Class X-L Regular Interests and the Class II-A-9 and Class II-A-23
Certificates, the related notional amount for such Class, as specified herein
(e.g., the "Class Notional Amount" for the Class I-X Certificates and the Class
I-X-L Regular Interest is the Class I-X Notional Amount).
Class Principal Balance: For any Class of Certificates and for any
Class of REMIC I Regular Interests, the applicable initial Class Principal
Balance therefor set forth in the Preliminary Statement hereto, corresponding to
the rights of such Class in payments of principal due to be passed through to
the Certificateholders or the Holders of the REMIC I Regular Interests from
principal payments on the Mortgage Loans or the REMIC I Regular Interests, as
applicable, as reduced from time to time by (x) distributions of principal to
the Certificateholders or the Holders of the REMIC I Regular Interests of such
Class (including, with respect to the Class II-A-14, Class II-A-15 and Class
II-A-16 Certificates and their Corresponding Classes, the portions of the Class
II-A-15 and Class II-A-16 Accrual Amounts distributed to such Classes; and
including, with respect to the Class II-A-11, Class II-A-14, Class II-A-15,
Class II-A-16, Class II-A-17, Class II-A-18, Class II-A-19, Class II-A-20, Class
II-A-21, Class II-A-22, Class II-A-29 and Class II-A-30 Certificates and their
Corresponding Classes, the portion of the Class II-A-22 Accrual Amount
distributed to such Classes) and (y) the portion of Realized Losses allocated to
the Class Principal Balance of such Class pursuant to the definition of
"Realized Loss" with respect to a given Distribution Date. For any Distribution
Date, the reduction of the Class Principal Balance of any Class of Certificates
and REMIC I Regular Interests pursuant to the definition of "Realized
20
Loss" shall be deemed effective prior to the determination and distribution of
principal on such Class pursuant to the definitions of "REMIC I Distribution
Amount" and "REMIC II Distribution Amount."
Notwithstanding the foregoing, any amounts distributed in respect of
losses pursuant to paragraph (I)(a)(v), (I)(a)(vi), (I)(b)(v) or (I)(b)(vi) of
the definition of "REMIC I Distribution Amount" shall not cause a further
reduction in the Class Principal Balances of the Class P-L Regular Interests or
their Corresponding Classes and any amounts distributed in respect of principal
losses pursuant to paragraph (I)(a)(xxv) or (I)(b)(xxvi) of the definition of
"REMIC I Distribution Amount" shall not cause a further reduction in the Class
Principal Balances of the Group I-L or Group II-L Regular Interests, as
applicable, or their Corresponding Classes.
In addition to the foregoing, (i) on each Distribution Date on or
before the Class I-A-15 Accretion Termination Date, the Class Principal Balance
for each of the Class I-A-15 Certificates and the Class I-A-15-L Regular
Interest shall be increased by the Class I-A-15 Accrual Amount for such
Distribution Date, (ii) on each Distribution Date on or before the Class I-A-16
Accretion Termination Date, the Class Principal Balance for each of the Class
I-A-16 Certificates and the Class I-A-16-L Regular Interest shall be increased
by the Class I-A-16 Accrual Amount for such Distribution Date and (iii) on each
Distribution Date on or before the Class I-A-22 Accretion Termination Date, the
Class Principal Balance for each of the Class I-A-22 Certificates and the Class
I-A-22-L Regular Interest shall be increased by the Class I-A-22 Accrual Amount
for such Distribution Date.
The Class Principal Balance for the Class I-A-1 Certificates shall be
referred to as the "Class I-A-1 Principal Balance," the Class Principal Balance
for the Class I-A-1-L Regular Interest shall be referred to as the "Class
I-A-1-L Principal Balance" and so on. The Class Principal Balances for the Class
X Certificates, the Class X-L Regular Interests and the Class II-A-9 and Class
II-A-23 Certificates shall each be zero.
Exclusively for the purpose of determining any subrogation rights of
the Certificate Insurer arising under Section 3.21 hereof, the "Class Principal
Balance" for the Insured Certificates shall not be reduced by the amount of any
payments made by the Certificate Insurer in respect of principal on such
Certificates under the Certificate Insurance Policy, except to the extent such
payments have been reimbursed to the Certificate Insurer pursuant to the
provisions of this Agreement.
Class R-1 Certificates: The Certificates designated as "Class R-1" on
the face thereof in substantially the form attached hereto as Exhibit B, which
have been designated as the single class of "residual interest" in REMIC I
pursuant to Section 2.01.
Class R-2 Certificates: The Certificates designated as "Class R-2" on
the face thereof in substantially the form attached hereto as Exhibit B, which
have been designated as the single class of "residual interest" in REMIC II
pursuant to Section 2.05.
21
Class R-2-L Regular Interest: The uncertificated partial undivided
beneficial ownership interest in REMIC I which constitutes a REMIC I Regular
Interest and is entitled to distributions as set forth herein.
Class X Certificates: The Class I-X and Class II-X Certificates.
Class X-L Regular Interests: The Class I-X-L and Class II-X-L Regular
Interests.
Clean-Up Call Percentage: 5%.
Clearing Agency: An organization registered as a "clearing agency"
pursuant to Section 17A of the Securities Exchange Act of 1934, as amended,
which initially shall be DTC.
Closing Date: July 30, 2001, which is the date of settlement of the
sale of the Certificates to the original purchasers thereof.
Code: The Internal Revenue Code of 1986, as amended.
Company: Washington Mutual Mortgage Securities Corp., a Delaware
corporation, or its successor-in-interest.
Compensating Interest: For any Distribution Date with respect to each
Loan Group and the Mortgage Loans contained therein, the lesser of (i) the sum
of (a) the aggregate Master Servicing Fee payable with respect to such Loan
Group on such Distribution Date, (b) the aggregate Payoff Earnings with respect
to such Loan Group and (c) the aggregate Payoff Interest with respect to such
Loan Group and (ii) the aggregate Uncollected Interest with respect to such Loan
Group.
Cooperative: A private, cooperative housing corporation organized under
the laws of, and headquartered in, the State of New York which owns or leases
land and all or part of a building or buildings located in any such
jurisdiction, including apartments, spaces used for commercial purposes and
common areas therein and whose board of directors authorizes, among other
things, the sale of Cooperative Stock.
Cooperative Apartment: A dwelling unit in a multi-dwelling building
owned or leased by a Cooperative, which unit the Mortgagor has an exclusive
right to occupy pursuant to the terms of a proprietary lease or occupancy
agreement.
Cooperative Lease: With respect to a Cooperative Loan, the proprietary
lease or occupancy agreement with respect to the Cooperative Apartment occupied
by the Mortgagor and relating to the related Cooperative Stock, which lease or
agreement confers an exclusive right to the holder of such Cooperative Stock to
occupy such apartment.
Cooperative Loans: Any of the Mortgage Loans made in respect of a
Cooperative Apartment, evidenced by a Mortgage Note and secured by (i) a
Security Agreement, (ii) the related Cooperative Stock Certificate, (iii) an
assignment or mortgage of the Cooperative Lease, (iv) financing statements and
(v) a stock power (or other similar instrument), and ancillary thereto, a
recognition agreement between the Cooperative and the originator of the
Cooperative
22
Loan, each of which was transferred and assigned to the Trustee pursuant to
Section 2.01 and are from time to time held as part of the Trust Fund created
hereunder.
Cooperative Stock: With respect to a Cooperative Loan, the single
outstanding class of stock, partnership interest or other ownership instrument
in the related Cooperative.
Cooperative Stock Certificate: With respect to a Cooperative Loan, the
stock certificate or other instrument evidencing the related Cooperative Stock.
Corporate Trust Office: The corporate trust office of the Trustee in
the Commonwealth of Massachusetts, at which at any particular time its corporate
trust business with respect to this Agreement shall be administered, which
office at the date of the execution of this Agreement is located at 000 Xxxxxxxx
Xxxxxx, Xxxxxx, XX 00000, Attention: Corporate Trust Washington Mutual 2001-S8.
Corporation: Any Person (other than an individual, partnership, joint
venture or unincorporated organization) incorporated, associated, organized,
chartered or existing under the laws of any state or under the federal laws of
the United States of America; provided, that such Person have indefinite
existence under the law of its domicile.
Corresponding Class: With respect to the Group I Certificates and the
Group I-L Regular Interests, the "Corresponding Class" shall be as indicated in
the following table:
Class I-A-1-L Class I-A-1
Class I-P-L Class I-P
Class I-X-L Class I-X
Class I-B-1-L Class I-B-1
Class I-B-2-L Class I-B-2
Class I-B-3-L Class I-B-3
Class I-B-4-L Class I-B-4
Class I-B-5-L Class I-B-5
Class I-B-6-L Class I-B-6
With respect to the Group II and Class R-2 Certificates and the Group
II-L Regular Interests, the "Corresponding Class" shall be as indicated in the
following table:
Class II-A-1-L Class II-A-1
Class II-A-2-L Class II-A-2
Class II-A-3-L Class II-A-3
Class II-A-4-L Class II-A-4
Class II-A-5-L Class II-A-5
Class II-A-6-L Class II-A-6
Class II-A-7-L Class II-A-7
Class II-A-8-L Class II-A-8
Class II-A-10-L Class II-A-10
Class II-A-11-L Class II-A-11
Class II-A-12-L Class II-A-12
Class II-A-13-L Class II-A-13
Class II-A-14-L Class II-A-14
Class II-A-15-L Class II-A-15
Class II-A-16-L Class II-A-16
23
Class II-A-17-L Class II-A-17
Class II-A-18-L Class II-A-18
Class II-A-19-L Class II-A-19
Class II-A-20-L Class II-A-20
Class II-A-21-L Class II-A-21
Class II-A-22-L Class II-A-22
Class II-A-24-L Class II-A-24
Class II-A-25-L Class II-A-25
Class II-A-26-L Class II-A-26
Class II-A-27-L Class II-A-27
Class II-A-28-L Class II-A-28
Class II-A-29-L Class II-A-29
Class II-A-30-L Class II-A-30
Class II-P-L Class II-P
Class II-X-L Class II-X
Class II-B-1-L Class II-B-1
Class II-B-2-L Class II-B-2
Class II-B-3-L Class II-B-3
Class II-B-4-L Class II-B-4
Class II-B-5-L Class II-B-5
Class II-B-6-L Class II-B-6
Class R-2-L Class R-2
Curtailment: Any payment (exclusive of any prepayment penalty) of
principal on a Mortgage Loan, made by or on behalf of the related Mortgagor,
other than a Monthly Payment, a Prepaid Monthly Payment or a Payoff, which is
applied to reduce the outstanding principal balance of the Mortgage Loan.
Curtailment Shortfall: With respect to any Non-Excluded Curtailment
applied with a Monthly Payment other than a Prepaid Monthly Payment, an amount
equal to one month's interest on such Non-Excluded Curtailment at the applicable
Pass-Through Rate on such Mortgage Loan.
Custodial Account for P&I: The Custodial Account for principal and
interest established and maintained by each Servicer pursuant to its Selling and
Servicing Contract and caused by the Master Servicer to be established and
maintained pursuant to Section 3.02 (a) with the corporate trust department of
the Trustee or another financial institution approved by the Master Servicer
such that the rights of the Master Servicer, the Trustee, the Certificate
Insurer and the Certificateholders thereto shall be fully protected against the
claims of any creditors of the applicable Servicer and of any creditors or
depositors of the institution in which such account is maintained, (b) within
FDIC insured accounts (or other accounts with comparable insurance coverage
acceptable to the Rating Agencies and the Certificate Insurer) created,
maintained and monitored by a Servicer or (c) in a separate non-trust account
without FDIC or other insurance in an Eligible Institution. In the event that a
Custodial Account for P&I is established pursuant to clause (b) of the preceding
sentence, amounts held in such Custodial Account for P&I shall not exceed the
level of deposit insurance coverage on such account; accordingly, more than one
Custodial Account for P&I may be established. Any amount that is at any time not
protected or insured in accordance with the first sentence of this definition of
"Custodial Account for P&I" shall promptly be withdrawn from such Custodial
Account for P&I and be remitted to the Investment Account.
24
Custodial Account for Reserves: The Custodial Account for Reserves
established and maintained by each Servicer pursuant to its Selling and
Servicing Contract and caused by the Master Servicer to be established and
maintained pursuant to Section 3.02 (a) with the corporate trust department of
the Trustee or another financial institution approved by the Master Servicer
such that the rights of the Master Servicer, the Trustee, the Certificate
Insurer and the Certificateholders thereto shall be fully protected against the
claims of any creditors of the applicable Servicer and of any creditors or
depositors of the institution in which such account is maintained, (b) within
FDIC insured accounts (or other accounts with comparable insurance coverage
acceptable to the Rating Agencies and the Certificate Insurer) created,
maintained and monitored by a Servicer or (c) in a separate non-trust account
without FDIC or other insurance in an Eligible Institution. In the event that a
Custodial Account for Reserves is established pursuant to clause (b) of the
preceding sentence, amounts held in such Custodial Account for Reserves shall
not exceed the level of deposit insurance coverage on such account; accordingly,
more than one Custodial Account for Reserves may be established. Any amount that
is at any time not protected or insured in accordance with the first sentence of
this definition of "Custodial Account for Reserves" shall promptly be withdrawn
from such Custodial Account for Reserves and be remitted to the Investment
Account.
Custodial Agreement: The agreement, if any, between the Trustee and a
Custodian providing for the safekeeping of the Mortgage Files on behalf of the
Certificateholders and the Certificate Insurer.
Custodian: A custodian (other than the Trustee) which is not an
affiliate of the Master Servicer or the Company and which is appointed pursuant
to a Custodial Agreement. Any Custodian so appointed shall act as agent on
behalf of the Trustee, and shall be compensated by the Trustee at no additional
charge to the Master Servicer. The Trustee shall remain at all times responsible
under the terms of this Agreement, notwithstanding the fact that certain duties
have been assigned to a Custodian.
Cut-Off Date: July 1, 2001.
Deceased Holder: A Beneficial Holder of a Special Retail Certificate
who was living at the time such Certificate was acquired and whose authorized
personal representative, surviving tenant by the entirety, surviving joint
tenant or surviving tenant in common or other person empowered to act on behalf
of such Beneficial Holder causes to be furnished to DTC evidence of such
Beneficial Holder's death satisfactory to the Trustee and any tax waivers
requested by the Trustee.
Deficiency Amount: With respect to the Insured Certificates, as of any
Distribution Date, the sum of (i) the excess, if any, of (A) interest accrued
during the preceding calendar month on the Class Principal Balance of the
Insured Certificates immediately before such Distribution Date at their
Certificate Interest Rate, reduced by any interest shortfalls resulting from the
Relief Act allocated to the Insured Certificates, over (B) the sum of (1) the
amount available to be paid to the Insured Certificates on such Distribution
Date, pursuant to the definition of "REMIC II Distribution Amount," that
represents interest accrued during the preceding calendar month on the Class
II-A-24-L Regular Interest and paid to such Class pursuant to the definition of
"REMIC I Distribution Amount" on such Distribution Date and (2) any Class
II-A-24 Covered Interest
25
Shortfall Amount available to be paid from the Class II-A-24 Reserve Fund on
such Distribution Date, (ii) the principal portion of any Realized Loss
allocated to the Insured Certificates, and (iii) the Class Principal Balance of
the Insured Certificates to the extent unpaid on the Last Scheduled Distribution
Date for the Insured Certificates or earlier termination of the Trust pursuant
to the terms hereof.
Definitive Certificates: Certificates in definitive, fully registered
and certificated form.
Depositary Agreement: The Letter of Representations, dated July 27,
2001 by and among DTC, the Company and the Trustee.
Destroyed Mortgage Note: A Mortgage Note the original of which was
permanently lost or destroyed and has not been replaced.
Determination Date: A day not later than the 10th day preceding a
related Distribution Date, as determined by the Master Servicer.
Disqualified Organization: Any Person which is not a Permitted
Transferee, but does not include any Pass-Through Entity which owns or holds a
Residual Certificate and of which a Disqualified Organization, directly or
indirectly, may be a stockholder, partner or beneficiary.
Distribution Date: With respect to distributions on the REMIC I Regular
Interests and the Certificates, the 25th day (or, if such 25th day is not a
Business Day, the Business Day immediately succeeding such 25th day) of each
month, with the first such date being August 27, 2001. The "related Due Date"
for any Distribution Date is the Due Date immediately preceding such
Distribution Date.
DTC: The Depository Trust Company.
DTC Participant: A broker, dealer, bank, other financial institution or
other Person for whom DTC effects book-entry transfers and pledges of securities
deposited with DTC.
Due Date: The day on which the Monthly Payment for each Mortgage Loan
is due.
Eligible Institution: An institution having (i) the highest short-term
debt rating, and one of the two highest long-term debt ratings of the Rating
Agencies, (ii) with respect to any Custodial Account for P&I and special
Custodial Account for Reserves, an unsecured long-term debt rating of at least
one of the two highest unsecured long-term debt ratings of the Rating Agencies,
(iii) with respect to any Buydown Fund Account or Custodial Account which also
serves as a Buydown Fund Account, the highest unsecured long-term debt rating by
the Rating Agencies, or (iv) the approval of the Rating Agencies and the
Certificate Insurer. Such institution may be the Servicer if the applicable
Selling and Servicing Contract requires the Servicer to provide the Master
Servicer with written notice on the Business Day following the date on which the
Servicer determines that such Servicer's short-term debt and unsecured long-term
debt ratings fail to meet the requirements of the prior sentence.
26
Eligible Investments: Any one or more of the obligations or securities
listed below in which funds deposited in the Investment Account, the Certificate
Account, the Custodial Account for P&I and the Custodial Account for Reserves
may be invested:
(i) Obligations of, or guaranteed as to principal and interest
by, the United States or any agency or instrumentality thereof when
such obligations are backed by the full faith and credit of the United
States;
(ii) Repurchase agreements on obligations described in clause
(i) of this definition of "Eligible Investments," provided that the
unsecured obligations of the party (including the Trustee in its
commercial capacity) agreeing to repurchase such obligations have at
the time one of the two highest short term debt ratings of the Rating
Agencies and provided that such repurchaser's unsecured long term debt
has one of the two highest unsecured long term debt ratings of the
Rating Agencies;
(iii) Federal funds, certificates of deposit, time deposits
and bankers' acceptances of any U.S. bank or trust company incorporated
under the laws of the United States or any state (including the Trustee
in its commercial capacity), provided that the debt obligations of such
bank or trust company (or, in the case of the principal bank in a bank
holding company system, debt obligations of the bank holding company)
at the date of acquisition thereof have one of the two highest short
term debt ratings of the Rating Agencies and unsecured long term debt
has one of the two highest unsecured long term debt ratings of the
Rating Agencies;
(iv) Obligations of, or obligations guaranteed by, any state
of the United States or the District of Columbia, provided that such
obligations at the date of acquisition thereof shall have the highest
long-term debt ratings available for such securities from the Rating
Agencies;
(v) Commercial paper of any corporation incorporated under the
laws of the United States or any state thereof, which on the date of
acquisition has the highest commercial paper rating of the Rating
Agencies, provided that the corporation has unsecured long term debt
that has one of the two highest unsecured long term debt ratings of the
Rating Agencies;
(vi) Securities (other than stripped bonds or stripped
coupons) bearing interest or sold at a discount that are issued by any
corporation incorporated under the laws of the United States or any
state thereof and have the highest long-term unsecured rating available
for such securities from the Rating Agencies; provided, however, that
securities issued by any such corporation will not be investments to
the extent that investment therein would cause the outstanding
principal amount of securities issued by such corporation that are then
held as part of the Investment Account or the Certificate Account to
exceed 20% of the aggregate principal amount of all Eligible
Investments then held in the Investment Account and the Certificate
Account; and
(vii) Units of taxable money market funds (which may be 12b-1
funds, as contemplated under the rules promulgated by the Securities
and Exchange Commission
27
under the Investment Company Act of 1940), which funds have the highest
rating available for such securities from the Rating Agencies or which
have been designated in writing by the Rating Agencies as Eligible
Investments;
provided, however, that such obligation or security is held for a temporary
period pursuant to Section 1.860G-2(g)(1) of the Treasury Regulations, and that
such period can in no event exceed thirteen months.
In no event shall an instrument be an Eligible Investment if such
instrument (a) evidences a right to receive only interest payments with respect
to the obligations underlying such instrument or (b) has been purchased at a
price greater than the outstanding principal balance of such instrument.
ERISA: The Employee Retirement Income Security Act of 1974, as amended.
ERISA Restricted Certificate: Any Senior Subordinate Certificate.
Event of Default: Any event of default as specified in Section 7.01.
Excess Liquidation Proceeds: With respect to any Distribution Date, the
excess, if any, of aggregate Liquidation Proceeds received during the Prior
Period over the amount that would have been received if Payoffs had been made
with respect to such Mortgage Loans on the date such Liquidation Proceeds were
received.
Excluded Curtailment: Any Curtailment received on a Washington Mutual
Bank Loan between the Cut-Off Date and the date of the mortgage loan schedule
attached to the mortgage loan purchase agreement pursuant to which the Company
purchased such loan.
FDIC: Federal Deposit Insurance Corporation, or any successor thereto.
FHA: Federal Housing Administration, or any successor thereto.
Xxxxxx Xxx: The entity formerly known as the Federal National Mortgage
Association, or any successor thereto.
Final Maturity Date: With respect to each Class of the REMIC I Regular
Interests and the Certificates, the date set forth in the applicable table
contained in the Preliminary Statement hereto.
Fitch: Fitch, Inc., provided that at any time it be a Rating Agency.
Fraud Coverage: During the period prior to the first anniversary of the
Cut-Off Date and with respect to Loan Group I, 2.00% of the aggregate principal
balance of the Group I Loans as of the Cut-Off Date (the "Initial Group I Fraud
Coverage"), reduced by Fraud Losses allocated to the Group I-L Regular Interests
since the Cut-Off Date; during the period from the first anniversary of the
Cut-Off Date to (but not including) the fifth anniversary of the Cut-Off Date,
the amount of the Fraud Coverage for Loan Group I on the most recent previous
anniversary of the Cut-Off Date (calculated in accordance with the second
sentence of this paragraph) reduced
28
by Fraud Losses allocated to the Group I-L Regular Interests since such
anniversary; and during the period on and after the fifth anniversary of the
Cut-Off Date, zero. On each anniversary of the Cut-Off Date, the Fraud Coverage
for Loan Group I shall be reduced to the lesser of (i) on the first, second,
third and fourth anniversaries of the Cut-Off Date, 1.00% of the aggregate
principal balance of the Group I Loans as of the Due Date in the preceding month
and (ii) the excess of the Initial Group I Fraud Coverage over cumulative Fraud
Losses allocated to the Group I-L Regular Interests since the Cut-Off Date.
During the period prior to the first anniversary of the Cut-Off Date
and with respect to Loan Group II, 3.00% of the aggregate principal balance of
the Group II Loans as of the Cut-Off Date (the "Initial Group II Fraud
Coverage"), reduced by Fraud Losses allocated to the Group II-L Regular
Interests since the Cut-Off Date; during the period from the first anniversary
of the Cut-Off Date to (but not including) the fifth anniversary of the Cut-Off
Date, the amount of the Fraud Coverage for Loan Group II on the most recent
previous anniversary of the Cut-Off Date (calculated in accordance with the
second sentence of this paragraph) reduced by Fraud Losses allocated to the
Group II-L Regular Interests since such anniversary; and during the period on
and after the fifth anniversary of the Cut-Off Date, zero. On each anniversary
of the Cut-Off Date, the Fraud Coverage for Loan Group II shall be reduced to
the lesser of (i) on the first anniversary of the Cut-Off Date, 2.00%, and on
the second, third and fourth anniversaries of the Cut-Off Date, 1.00% of the
aggregate principal balance of the Group II Loans as of the Due Date in the
preceding month and (ii) the excess of the Initial Group II Fraud Coverage over
cumulative Fraud Losses allocated to the Group II-L Regular Interests since the
Cut-Off Date.
The Fraud Coverage for Loan Group I and the Fraud Coverage for Loan
Group II may be reduced upon written confirmation from the Rating Agencies that
such reduction will not adversely affect the then current ratings assigned to
the Certificates by the Rating Agencies (determined in the case of the Insured
Certificates, without giving effect to the Certificate Insurance Policy).
Fraud Loss: A Realized Loss (or portion thereof) with respect to a
Mortgage Loan arising from any action, event or state of facts with respect to
such Mortgage Loan which, because it involved or arose out of any dishonest,
fraudulent, criminal, negligent or knowingly wrongful act, error or omission by
the Mortgagor, originator (or assignee thereof) of such Mortgage Loan, Lender, a
Servicer or the Master Servicer, would result in an exclusion from, denial of,
or defense to coverage which otherwise would be provided by a Primary Insurance
Policy previously issued with respect to such Mortgage Loan.
Xxxxxxx Mac: The entity formerly known as the Federal Home Loan
Mortgage Corporation, or any successor thereto.
Group I Certificates: The Class I-A-1, Class I-P, Class I-X and Group
I-B Certificates.
Group I Credit Support Depletion Date: The first Distribution Date on
which the aggregate Class Principal Balance of the Group I-B Certificates has
been or will be reduced to zero as a result of principal distributions thereon
and the allocation of Realized Losses on such Distribution Date.
29
Group I Loans: The Mortgage Loans designated on the Mortgage Loan
Schedule as Group I Loans.
Group I Premium Rate Mortgage Loans: The Group I Loans having
Pass-Through Rates greater than or equal to 6.500% per annum.
Group I Senior Liquidation Amount: For any Distribution Date, the
aggregate, for each Group I Loan which became a Liquidated Mortgage Loan during
the Prior Period, of the lesser of: (i) the Group I Senior Percentage of the
Principal Balance of such Mortgage Loan (exclusive of the Class I-P Fraction
thereof, with respect to any Class I-P Mortgage Loan) and (ii) the Group I
Senior Prepayment Percentage of the Liquidation Principal with respect to such
Mortgage Loan.
Group I Senior Percentage: For any Distribution Date, the Class I-A-1
Principal Balance divided by the aggregate Class Principal Balance of the Class
I-A-1 and Group I-B Certificates, in each case immediately before such
Distribution Date.
Group I Senior Prepayment Percentage: For any Distribution Date, 100%,
unless (i) the Group I Senior Percentage for such Distribution Date is less than
or equal to the Group I Senior Percentage as of the Closing Date, (ii) such
Distribution Date occurs on or after the fifth anniversary of the first
Distribution Date and (iii) the following tests specified in clauses (a) and (b)
are met:
(a) the mean aggregate Principal Balance as of the Distribution
Date in each of the immediately preceding six calendar months
of the Group I Loans which were 60 or more days delinquent as
of such date (including Mortgage Loans in foreclosure and
Mortgaged Properties held by REMIC I) is less than or equal to
50% of the aggregate Class Principal Balance of the Group I-B
Certificates as of the current Distribution Date, and
(b) cumulative Realized Losses on the Group I Loans allocated to
the Group I-B-L Regular Interests, as a percentage of the
aggregate Class Principal Balance of the Group I-B-L Regular
Interests as of the Closing Date, are less than or equal to,
for any Distribution Date (1) before the sixth anniversary of
the first Distribution Date, 30%, (2) on or after the sixth
anniversary but before the seventh anniversary of the first
Distribution Date, 35%, (3) on or after the seventh
anniversary but before the eighth anniversary of the first
Distribution Date, 40%, (4) on or after the eighth anniversary
but before the ninth anniversary of the first Distribution
Date, 45%, and (5) on or after the ninth anniversary of the
first Distribution Date, 50%,
in which case the Group I Senior Prepayment Percentage shall be calculated as
follows: (1) for any such Distribution Date on or after the fifth anniversary
but before the sixth anniversary of the first Distribution Date, the Group I
Senior Percentage for such Distribution Date plus 70% of the Group I Subordinate
Percentage for such Distribution Date; (2) for any such Distribution Date on or
after the sixth anniversary but before the seventh anniversary of the first
Distribution Date, the Group I Senior Percentage for such Distribution Date plus
60% of the Group I Subordinate
30
Percentage for such Distribution Date; (3) for any such Distribution Date on or
after the seventh anniversary but before the eighth anniversary of the first
Distribution Date, the Group I Senior Percentage for such Distribution Date plus
40% of the Group I Subordinate Percentage for such Distribution Date; (4) for
any such Distribution Date on or after the eighth anniversary but before the
ninth anniversary of the first Distribution Date, the Group I Senior Percentage
for such Distribution Date plus 20% of the Group I Subordinate Percentage for
such Distribution Date; and (5) for any such Distribution Date thereafter, the
Group I Senior Percentage for such Distribution Date.
If on any Distribution Date the allocation to the Class I-A-1-L Regular
Interest of Principal Prepayments in the percentage required would reduce the
Class Principal Balance of such Regular Interest below zero, the Group I Senior
Prepayment Percentage for such Distribution Date shall be limited to the
percentage necessary to reduce the Class Principal Balance of such Regular
Interest to zero. Notwithstanding the foregoing, however, on each Distribution
Date, the Class I-P-L Regular Interest shall receive the applicable Class I-P
Fraction of all principal payments, including, without limitation, Principal
Prepayments (but excluding any Excluded Curtailments), received in respect of
Class I-P Mortgage Loans.
Group I Senior Principal Distribution Amount: For any Distribution
Date, an amount equal to the sum of (a) the Group I Senior Percentage of the
Principal Payment Amount for Loan Group I (exclusive of the portion thereof
attributable to principal distributions to the Class I-P-L Regular Interest
pursuant to clauses (I)(a)(i) and (II)(a)(i) of the definition of "REMIC I
Distribution Amount"), (b) the Group I Senior Prepayment Percentage of the
Principal Prepayment Amount for Loan Group I (exclusive of the portion thereof
attributable to principal distributions to the Class I-P-L Regular Interest
pursuant to clauses (I)(a)(i) and (II)(a)(i) of the definition of "REMIC I
Distribution Amount") and (c) the Group I Senior Liquidation Amount.
Group I Subordinate Liquidation Amount: For any Distribution Date, the
excess, if any, of the aggregate of Liquidation Principal for all Group I Loans
which became Liquidated Mortgage Loans during the Prior Period over the Group I
Senior Liquidation Amount for such Distribution Date.
Group I Subordinate Percentage: For any Distribution Date, the excess
of 100% over the Group I Senior Percentage for such date.
Group I Subordinate Prepayment Percentage: For any Distribution Date,
the excess of 100% over the Group I Senior Prepayment Percentage for such
Distribution Date; provided, however, that if the Class I-A-1 Principal Balance
has been reduced to zero, then the Group I Subordinate Prepayment Percentage
shall equal 100%.
Group I Subordinate Principal Distribution Amount: For any Distribution
Date, the excess of (A) the sum of (i) the Group I Subordinate Percentage of the
Principal Payment Amount for Loan Group I (exclusive of the portion thereof
attributable to principal distributions to the Class I-P-L Regular Interest
pursuant to clause (I)(a)(i) of the definition of "REMIC I Distribution
Amount"), (ii) the Group I Subordinate Principal Prepayments Distribution Amount
(without regard to the proviso in the definition thereof) and (iii) the Group I
Subordinate Liquidation Amount over (B) the amounts required to be distributed
to the Class I-P-L Regular
31
Interest pursuant to clauses (I)(a)(v) and (I)(a)(vi) of the definition of
"REMIC I Distribution Amount" on such Distribution Date.
On any Distribution Date, the Group I Subordinate Principal
Distribution Amount shall be allocated pro rata, by Class Principal Balance,
among the Classes of Group I-B-L Regular Interests and paid in the order of
distribution to such Classes pursuant to clause (I)(a) of the definition of
"REMIC I Distribution Amount" except as otherwise stated in such definition.
Notwithstanding the foregoing, on any Distribution Date prior to distributions
on such date, if the Subordination Level for any Class of Group I-B-L Regular
Interests is less than such Subordination Level as of the Closing Date, the pro
rata portion of the Group I Subordinate Principal Prepayments Distribution
Amount otherwise allocable to the Class or Classes of Group I-B-L Regular
Interests junior to such Class will be distributed to the most senior Class of
Group I-B-L Regular Interests for which the Subordination Level is less than the
Subordination Level as of the Closing Date, and to the Class or Classes of Group
I-B-L Regular Interests senior thereto, pro rata according to the Class
Principal Balances of such Classes. For purposes of this definition and the
definition of "Subordination Level," the relative seniority, from highest to
lowest, of the Group I-B-L Regular Interests shall be as follows: Class I-B-1-L,
Class I-B-2-L, Class I-B-3-L, Class I-B-4-L, Class I-B-5-L and Class I-B-6-L.
Group I Subordinate Principal Prepayments Distribution Amount: For any
Distribution Date, the Group I Subordinate Prepayment Percentage of the
Principal Prepayment Amount for Loan Group I (exclusive of the portion thereof
attributable to principal distributions to the Class I-P-L Regular Interest
pursuant to clause (I)(a)(i) of the definition of "REMIC I Distribution
Amount"); provided, however, that if the amount specified in clause (B) of the
definition of "Group I Subordinate Principal Distribution Amount" is greater
than the sum of the amounts specified in clauses (A)(i) and (A)(iii) of such
definition, then the Group I Subordinate Principal Prepayments Distribution
Amount shall be reduced by the amount of such excess.
Group I-B Certificates: The Class I-B-1, Class I-B-2, Class I-B-3,
Class I-B-4, Class I-B-5 and Class I-B-6 Certificates.
Group I-B-L Regular Interests: The Class I-B-1-L, Class I-B-2-L, Class
I-B-3-L, Class I-B-4-L, Class I-B-5-L and Class I-B-6-L Regular Interests.
Group I-L Regular Interests: The Class I-A-1-L, Class I-P-L, Class
I-X-L and Group I-B-L Regular Interests.
Group II Adjusted Lockout Percentage: For any Distribution Date before
the Distribution Date in August 2006, 0%; and for any Distribution Date in or
after the Distribution Date in August 2006, the Group II Lockout Percentage.
Group II Certificates: The Group II-A, Class II-P, Class II-X and Group
II-B Certificates.
Group II Credit Support Depletion Date: The first Distribution Date on
which the aggregate Class Principal Balance of the Group II-B Certificates has
been or will be reduced to zero as a result of principal distributions thereon
and the allocation of Realized Losses on such Distribution Date.
32
Group II Loans: The Mortgage Loans designated on the Mortgage Loan
Schedule as Group II Loans.
Group II Lockout Liquidation Amount: For any Distribution Date, the
aggregate, for each Group II Loan which became a Liquidated Mortgage Loan during
the Prior Period, of the lesser of (i) the Group II Adjusted Lockout Percentage
of the Principal Balance of such Mortgage Loan (exclusive of the Class II-P
Fraction thereof, with respect to any Class II-P Mortgage Loan) and (ii) the
Group II Adjusted Lockout Percentage of the Liquidation Principal with respect
to such Mortgage Loan.
Group II Lockout Percentage: For any Distribution Date, the lesser of
(i) 100% and (ii) the aggregate Class Principal Balance of the Class II-A-24,
Class II-A-25, Class II-A-26, Class II-A-27 and Class II-A-28 Certificates plus
$61,000,000 divided by the aggregate Class Principal Balance of the Group II-A
and Group II-B Certificates, in each case immediately before that Distribution
Date.
Group II Lockout Prepayment Percentage: For any Distribution Date, the
product of (i) the Group II Lockout Percentage and (ii) the Step Down
Percentage.
Group II Lockout Priority Amount: For any Distribution Date, the lesser
of (a) 98.6% of the Group II Senior Principal Distribution Amount and (b) the
sum of (i) the Group II Adjusted Lockout Percentage of the Principal Payment
Amount for Loan Group II (exclusive of the portion thereof attributable to
principal distributions to the Class II-P-L Regular Interest pursuant to clause
(I)(b)(i) of the definition of "REMIC I Distribution Amount"), (ii) the Group II
Lockout Prepayment Percentage of the Principal Prepayment Amount for Loan Group
II (exclusive of the portion thereof attributable to principal distributions to
the Class II-P-L Regular Interest pursuant to clause (I)(b)(i) of the definition
of "REMIC I Distribution Amount") and (iii) the Group II Lockout Liquidation
Amount.
Group II Premium Rate Mortgage Loans: The Group II Loans having
Pass-Through Rates greater than or equal to 6.750% per annum.
Group II Senior Liquidation Amount: For any Distribution Date, the
aggregate, for each Group II Loan which became a Liquidated Mortgage Loan during
the Prior Period, of the lesser of: (i) the Group II Senior Percentage of the
Principal Balance of such Mortgage Loan (exclusive of the Class II-P Fraction
thereof, with respect to any Class II-P Mortgage Loan) and (ii) the Group II
Senior Prepayment Percentage of the Liquidation Principal with respect to such
Mortgage Loan.
Group II Senior Percentage: For any Distribution Date, the aggregate
Class Principal Balance of the Group II-A and Residual Certificates divided by
the aggregate Class Principal Balance of the Group II-A, Group II-B and Residual
Certificates, in each case immediately before such Distribution Date.
Group II Senior Prepayment Percentage: For any Distribution Date, 100%,
unless (i) the Group II Senior Percentage for such Distribution Date is less
than or equal to the Group II Senior Percentage as of the Closing Date, (ii)
such Distribution Date occurs on or after the fifth
33
anniversary of the first Distribution Date and (iii) the following tests
specified in clauses (a) and (b) are met:
(a) the mean aggregate Principal Balance as of the Distribution
Date in each of the immediately preceding six calendar months
of the Group II Loans which were 60 or more days delinquent as
of such date (including Mortgage Loans in foreclosure and
Mortgaged Properties held by REMIC I) is less than or equal to
50% of the aggregate Class Principal Balance of the Group II-B
Certificates as of the current Distribution Date, and
(b) cumulative Realized Losses on the Group II Loans allocated to
the Group II-X-X Regular Interests, as a percentage of the
aggregate Class Principal Balance of the Group II-X-X Regular
Interests as of the Closing Date, are less than or equal to,
for any Distribution Date (1) before the sixth anniversary of
the first Distribution Date, 30%, (2) on or after the sixth
anniversary but before the seventh anniversary of the first
Distribution Date, 35%, (3) on or after the seventh
anniversary but before the eighth anniversary of the first
Distribution Date, 40%, (4) on or after the eighth anniversary
but before the ninth anniversary of the first Distribution
Date, 45%, and (5) on or after the ninth anniversary of the
first Distribution Date, 50%,
in which case the Group II Senior Prepayment Percentage shall be calculated as
follows: (1) for any such Distribution Date on or after the fifth anniversary
but before the sixth anniversary of the first Distribution Date, the Group II
Senior Percentage for such Distribution Date plus 70% of the Group II
Subordinate Percentage for such Distribution Date; (2) for any such Distribution
Date on or after the sixth anniversary but before the seventh anniversary of the
first Distribution Date, the Group II Senior Percentage for such Distribution
Date plus 60% of the Group II Subordinate Percentage for such Distribution Date;
(3) for any such Distribution Date on or after the seventh anniversary but
before the eighth anniversary of the first Distribution Date, the Group II
Senior Percentage for such Distribution Date plus 40% of the Group II
Subordinate Percentage for such Distribution Date; (4) for any such Distribution
Date on or after the eighth anniversary but before the ninth anniversary of the
first Distribution Date, the Group II Senior Percentage for such Distribution
Date plus 20% of the Group II Subordinate Percentage for such Distribution Date;
and (5) for any such Distribution Date thereafter, the Group II Senior
Percentage for such Distribution Date.
If on any Distribution Date the allocation to the Group II-A-L and
Class R-2-L Regular Interests of Principal Prepayments in the percentage
required would reduce the Class Principal Balance of such Regular Interests
below zero, the Group II Senior Prepayment Percentage for such Distribution Date
shall be limited to the percentage necessary to reduce the Class Principal
Balance of such Regular Interests to zero. Notwithstanding the foregoing,
however, on each Distribution Date, the Class II-P-L Regular Interest shall
receive the applicable Class II-P Fraction of all principal payments, including,
without limitation, Principal Prepayments (but excluding any Excluded
Curtailments), received in respect of Class II-P Mortgage Loans.
Group II Senior Principal Distribution Amount: For any Distribution
Date, an amount equal to the sum of (a) the Group II Senior Percentage of the
Principal Payment Amount for
34
Loan Group II (exclusive of the portion thereof attributable to principal
distributions to the Class II-P-L Regular Interest pursuant to clauses (I)(b)(i)
and (II)(b)(i) of the definition of "REMIC I Distribution Amount"), (b) the
Group II Senior Prepayment Percentage of the Principal Prepayment Amount for
Loan Group II (exclusive of the portion thereof attributable to principal
distributions to the Class II-P-L Regular Interest pursuant to clauses (I)(b)(i)
and (II)(b)(i) of the definition of "REMIC I Distribution Amount") and (c) the
Group II Senior Liquidation Amount.
Group II Subordinate Liquidation Amount: For any Distribution Date, the
excess, if any, of the aggregate of Liquidation Principal for all Group II Loans
which became Liquidated Mortgage Loans during the Prior Period, over the sum of
the Group II Senior Liquidation Amount for such Distribution Date.
Group II Subordinate Percentage: For any Distribution Date, the excess
of 100% over the Group II Senior Percentage for such date.
Group II Subordinate Prepayment Percentage: For any Distribution Date,
the excess of 100% over the Group II Senior Prepayment Percentage for such
Distribution Date; provided, however, that if the aggregate Class Principal
Balance of the Group II-A and Residual Certificates has been reduced to zero,
then the Group II Subordinate Prepayment Percentage shall equal 100%.
Group II Subordinate Principal Distribution Amount: For any
Distribution Date, the excess of (A) the sum of (i) the Group II Subordinate
Percentage of the Principal Payment Amount for Loan Group II (exclusive of the
portion thereof attributable to principal distributions to the Class II-P-L
Regular Interest pursuant to clause (I)(b)(i) of the definition of "REMIC I
Distribution Amount"), (ii) the Group II Subordinate Principal Prepayments
Distribution Amount (without regard to the proviso in the definition thereof)
and (iii) the Group II Subordinate Liquidation Amount over (B) the amounts
required to be distributed to the Class II-P-L Regular Interest pursuant to
clauses (I)(b)(v) and (I)(b)(vi) of the definition of "REMIC I Distribution
Amount" on such Distribution Date.
On any Distribution Date, the Group II Subordinate Principal
Distribution Amount shall be allocated pro rata, by Class Principal Balance,
among the Classes of Group II-X-X Regular Interests and paid in the order of
distribution to such Classes pursuant to clause (I)(b) of the definition of
"REMIC I Distribution Amount" except as otherwise stated in such definition.
Notwithstanding the foregoing, on any Distribution Date prior to distributions
on such date, if the Subordination Level for any Class of Group II-X-X Regular
Interests is less than such Subordination Level as of the Closing Date, the pro
rata portion of the Group II Subordinate Principal Prepayments Distribution
Amount otherwise allocable to the Class or Classes of Group II-X-X Regular
Interests junior to such Class will be distributed to the most senior Class of
Group II-X-X Regular Interests for which the Subordination Level is less than
the Subordination Level as of the Closing Date, and to the Class or Classes of
Group II-X-X Regular Interests senior thereto, pro rata according to the Class
Principal Balances of such Classes. For purposes of this definition and the
definition of "Subordination Level," the relative seniority, from highest to
lowest, of the Group II-X-X Regular Interests shall be as follows: Class
II-B-1-L, Class II-B-2-L, Class II-B-3-L, Class II-B-4-L, Class II-B-5-L and
Class II-B-6-L.
35
Group II Subordinate Principal Prepayments Distribution Amount: For any
Distribution Date, the Group II Subordinate Prepayment Percentage of the
Principal Prepayment Amount for Loan Group II (exclusive of the portion thereof
attributable to principal distributions to the Class II-P-L Regular Interest
pursuant to clause (I)(b)(i) of the definition of "REMIC I Distribution
Amount"); provided, however, that if the amount specified in clause (B) of the
definition of "Group II Subordinate Principal Distribution Amount" is greater
than the sum of the amounts specified in clauses (A)(i) and (A)(iii) of such
definition, then the Group II Subordinate Principal Prepayments Distribution
Amount shall be reduced by the amount of such excess.
Group II-A Certificates: The Class II-A-1, Class II-A-2, Class II-A-3,
Class II-A-4, Class II-A-5, Class II-A-6, Class II-A-7, Class II-A-8, Class
II-A-9, Class II-A-10, Class II-A-11, Class II-A-12, Class II-A-13, Class
II-A-14, Class II-A-15, Class II-A-16, Class II-A-17, Class II-A-18, Class
II-A-19, Class II-A-20, Class II-A-21, Class II-A-22, Class II-A-23, Class
II-A-24, Class II-A-25, Class II-A-26, Class II-A-27, Class II-A-28, Class
II-A-29 and Class II-A-30 Certificates.
Group II-A-L Regular Interests: The Class II-A-1-L, Class II-A-2-L,
Class II-A-3-L, Class II-A-4-L, Class II-A-5-L, Class II-A-6-L, Class II-A-7-L,
Class II-A-8-L, Class II-A-10-L, Class II-A-11-L, Class II-A-12-L, Class
II-A-13-L, Class II-A-14-L, Class II-A-15-L, Class II-A-16-L, Class II-A-17-L,
Class II-A-18-L, Class II-A-19-L, Class II-A-20-L, Class II-A-21-L, Class
II-A-22-L, Class II-A-24-L, Class II-A-25-L, Class II-A-26-L, Class II-A-27-L,
Class II-A-28-L, Class II-A-29-L and Class II-A-30-L Regular Interests.
Group II-B Certificates: The Class II-B-1, Class II-B-2, Class II-B-3,
Class II-B-4, Class II-B-5 and Class II-B-6 Certificates.
Group II-X-X Regular Interests: The Class II-B-1-L, Class II-B-2-L,
Class II-B-3-L, Class II-B-4-L, Class II-B-5-L and Class II-B-6-L Regular
Interests.
Group II-L Regular Interests: The Group II-A-L, Class II-P-L, Class
II-X-L, Group II-X-X and Class R-2-L Regular Interests.
Indirect DTC Participants: Entities such as banks, brokers, dealers or
trust companies, that clear through or maintain a custodial relationship with a
DTC Participant, either directly or indirectly.
Insurance Proceeds: Amounts paid or payable by the insurer under the
Surety Bonds (with respect to any Additional Collateral Loan), any Primary
Insurance Policy or any other insurance policy (including any replacement policy
permitted under this Agreement) covering any Mortgage Loan or Mortgaged
Property, including, without limitation, any hazard insurance policy required
pursuant to Section 3.07, any title insurance policy required pursuant to
Section 2.03 and any FHA insurance policy or VA guaranty, but excluding the
Certificate Insurance Policy.
Insured Amount: For any Distribution Date, any Deficiency Amount for
such Distribution Date plus any Preference Amount for such Distribution Date.
Insured Certificates: The Class II-A-24 Certificates.
36
Interest Distribution Amount: For any Distribution Date, for any Class
of the REMIC I Regular Interests and the Class R-1 Certificates, the amount of
interest accrued on the respective Class Principal Balance or Class Notional
Amount, as applicable, in each case at the related Certificate Interest Rate for
such Class during the Prior Period, in each case before giving effect to
allocations of Realized Losses for the Prior Period or distributions to be made
on such Distribution Date, reduced by Uncompensated Interest Shortfall, interest
shortfalls related to the Relief Act and the interest portion of Realized Losses
allocated to such Class pursuant to the definitions of "Uncompensated Interest
Shortfall," "Relief Act" and "Realized Loss," respectively. The computation of
interest accrued shall be made on the basis of a 360-day year of twelve 30-day
months. The Interest Distribution Amounts for the Class P-L, Class II-A-13-L and
Class II-A-30-L Regular Interests shall equal zero.
Investment Account: The commingled account (which shall be commingled
only with investment accounts related to series of pass-through certificates
with a class of certificates which has a rating equal to the highest of the
Ratings of the Certificates) maintained by the Master Servicer in the trust
department of the Investment Depository pursuant to Section 3.03 and which bears
a designation acceptable to the Rating Agencies.
Investment Depository: The Chase Manhattan Bank, New York, New York or
another bank or trust company designated from time to time by the Master
Servicer. The Investment Depository shall at all times be an Eligible
Institution.
Junior Subordinate Certificates: The Class I-B-4, Class I-B-5, Class
I-B-6, Class II-B-4, Class II-B-5 and Class II-B-6 Certificates.
Last Scheduled Distribution Date: With respect to any Class of
Certificates, the Final Maturity Date for such Class.
Late Payment Rate: The meaning given to such term in the Certificate
Insurance Policy.
Lender: An institution from which the Company purchased any Mortgage
Loans pursuant to a Selling and Servicing Contract.
Living Holder: A Beneficial Holder of a Special Retail Certificate
other than a Deceased Holder.
Liquidated Mortgage Loan: A Mortgage Loan for which the Master Servicer
or the applicable Servicer has determined in accordance with its customary
servicing practices that it has received all amounts which it expects to recover
from or on account of such Mortgage Loan, whether from Insurance Proceeds,
Liquidation Proceeds or otherwise, including, in the case of Additional
Collateral Loans, any proceeds realized with respect to any Additional
Collateral, including any payment under the Surety Bonds. For purposes of this
definition, acquisition of a Mortgaged Property by the Trust Fund shall not
constitute final liquidation of the related Mortgage Loan.
Liquidation Principal: The principal portion of Liquidation Proceeds
received (exclusive of the portion thereof attributable to distributions to the
Class P-L Regular Interests pursuant to clauses (I)(a)(i), (I)(b)(i), (II)(a)(i)
and (II)(b)(i) of the definition of "REMIC I Distribution
37
Amount") with respect to each Mortgage Loan which became a Liquidated Mortgage
Loan (but not in excess of the principal balance thereof) during the Prior
Period.
Liquidation Proceeds: Amounts after deduction of amounts reimbursable
under Section 3.05(a)(i) and (ii) received and retained in connection with the
liquidation of defaulted Mortgage Loans, whether through foreclosure or
otherwise, including, in the case of Additional Collateral Loans, any proceeds
realized with respect to any Additional Collateral.
Loan Group: Loan Group I or Loan Group II, as applicable.
Loan Group I: The group of Mortgage Loans comprised of the Group I
Loans.
Loan Group II: The group of Mortgage Loans comprised of the Group II
Loans.
Loan-to-Value Ratio: The original principal amount of a Mortgage Loan
divided by the Original Value; provided, however, that references to "current
Loan-to-Value Ratio" or "Loan-to-Value Ratio as of the Cut-Off Date" in Section
2.03 shall be deemed to mean the then current Principal Balance of a Mortgage
Loan divided by the Original Value.
Lowest Class B Owner: An owner unaffiliated with the Company or the
Master Servicer of (i) a 100% interest in the Class of Group I-B Certificates
with the lowest priority, (ii) a 100% interest in the Class of Group II-B
Certificates with the lowest priority or (iii) a 100% interest in a class of
securities representing such interest in either of such Classes specified in
clause (i) or (ii) above.
Master Servicer: The Company, or any successor thereto appointed as
provided pursuant to Section 7.02, acting to service and administer the Mortgage
Loans pursuant to Section 3.01.
Master Servicer Business Day: Any day other than a Saturday, a Sunday,
or a day on which banking institutions in Chicago, Illinois are authorized or
obligated by law or executive order to be closed.
Master Servicing Fee: The fee charged by the Master Servicer for
supervising the mortgage servicing and advancing certain expenses, equal to a
per annum rate set forth for each Mortgage Loan in Exhibit D on the outstanding
Principal Balance of such Mortgage Loan, payable monthly from the Certificate
Account, the Investment Account or the Custodial Account for P&I.
MERS: Mortgage Electronic Registration Systems, Inc., a Delaware
corporation, or any successor thereto.
MERS Loan: Any Mortgage Loan registered on the MERS(R) System for which
MERS appears as the mortgagee of record on the Mortgage or on an assignment
thereof.
MERS(R) System: The system of electronically recording transfers of
Mortgages maintained by MERS.
MIN: The Mortgage Identification Number for a MERS Loan.
38
MOM Loan: A Mortgage Loan that was registered on the MERS(R) System at
the time of origination thereof and for which MERS appears as the mortgagee of
record on the Mortgage.
Monthly P&I Advance: An advance of funds by the Master Servicer
pursuant to Section 4.02 or a Servicer pursuant to its Selling and Servicing
Contract to cover delinquent principal and interest installments.
Monthly Payment: The scheduled payment of principal and interest on a
Mortgage Loan (including any amounts due from a Buydown Fund, if any) which is
due on the related Due Date for such Mortgage Loan.
Moody's: Xxxxx'x Investors Service, Inc., provided that at any time it
be a Rating Agency.
Mortgage: The mortgage, deed of trust or other instrument securing a
Mortgage Note.
Mortgage File: The following documents or instruments with respect to
each Mortgage Loan transferred and assigned by the Company pursuant to Section
2.01, (X) with respect to each Mortgage Loan that is not a Cooperative Loan:
(i) The original Mortgage Note endorsed to "State Street Bank
and Trust Company, as Custodian/Trustee, without recourse" or "State
Street Bank and Trust Company, as Trustee for the benefit of the
Holders from time to time of Washington Mutual Mortgage Securities
Corp. WaMu Mortgage Pass-Through Certificates, Series 2001-S8, without
recourse" and all intervening endorsements evidencing a complete chain
of endorsements from the originator to the Trustee, or, in the event of
any Destroyed Mortgage Note, a copy or a duplicate original of the
Mortgage Note, together with an original lost note affidavit from the
originator of the related Mortgage Loan or the Company, as applicable,
stating that the original Mortgage Note was lost, misplaced or
destroyed, together with a copy of the related Mortgage Note; provided,
however, that in the event the Mortgage Note is endorsed in blank as of
the Closing Date, the Company shall, within 45 days of the Closing
Date, cause such Mortgage Note to be endorsed pursuant to the terms set
forth herein; provided, further, that, with respect to any Mortgage
Note whereby the related Mortgaged Property is located in California,
such original Mortgage Note may be endorsed in blank and the Company
shall not be required to endorse such Mortgage Note pursuant to the
terms otherwise set forth in this clause (i);
(ii) The Buydown Agreement, if applicable;
(iii) A Mortgage that is either
(1) (x) the original recorded Mortgage with evidence
of recording thereon for the jurisdiction in which the
Mortgaged Property is located (which original recorded
Mortgage, in the case of a MOM Loan, shall set forth the MIN
and shall indicate that the Mortgage Loan is a MOM Loan), (y)
unless the Mortgage Loan is a MERS Loan, an original Mortgage
assignment thereof duly executed and acknowledged in
recordable form to "State Street Bank and Trust Company, as
Custodian/Trustee," or to "State Street Bank and Trust
Company, as
39
Trustee for the Holders of Washington Mutual Mortgage
Securities Corp. WaMu Mortgage Pass-Through Certificates,
Series 2001-S8," and (z) unless the Mortgage Loan is a MOM
Loan, recorded originals of all intervening assignments
evidencing a complete chain of assignment, from the originator
to the name holder or the payee endorsing the related Mortgage
Note (or, in the case of a MERS Loan other than a MOM Loan,
from the originator to MERS); or
(2) (x) a copy of the Mortgage (which Mortgage, in
the case of a MOM Loan, shall set forth the MIN and shall
indicate that the Mortgage Loan is a MOM Loan) which
represents a true and correct reproduction of the original
Mortgage and which has either been certified (i) on the face
thereof by the public recording office in the appropriate
jurisdiction in which the Mortgaged Property is located, or
(ii) by the originator or Lender as a true and correct copy
the original of which has been sent for recordation, (y)
unless the Mortgage Loan is a MERS Loan, an original Mortgage
assignment thereof duly executed and acknowledged in
recordable form to "State Street Bank and Trust Company, as
Custodian/Trustee," or to "State Street Bank and Trust
Company, as Trustee for the Holders of Washington Mutual
Mortgage Securities Corp. WaMu Mortgage Pass-Through
Certificates, Series 2001-S8," and (z) unless the Mortgage
Loan is a MOM Loan, true and correct copies, certified by the
applicable county recorder or by the originator or Lender as
described above, of all intervening assignments evidencing a
complete chain of assignment from the originator to the name
holder or the payee endorsing the related Mortgage Note (or,
in the case of a MERS Loan other than a MOM Loan, from the
originator to MERS);
provided, however, that in the event the Mortgage assignment described
in clause (iii)(1)(y) or (iii)(2)(y) above, as applicable, is executed
in blank as of the Closing Date, the Company shall, within 45 days of
the Closing Date, cause such assignment to be executed pursuant to the
terms set forth herein; provided, further, that, with respect to any
Mortgage whereby the related Mortgaged Property is located in
California, the Mortgage assignment may be executed and acknowledged in
blank and the Company shall not be required to deliver such Mortgage
assignment in the form otherwise set forth in clause (iii)(1)(y) or
(iii)(2)(y);
(iv) A copy of (a) the title insurance policy, or (b) in lieu
thereof, a title insurance binder, a copy of an attorney's title
opinion, certificate or other evidence of title acceptable to the
Company;
(v) For any Mortgage Loan that has been modified or amended,
the original instrument or instruments effecting such modification or
amendment; and
(vi) For each Additional Collateral Loan, a copy of the
security agreement or guaranty constituting part of the related
Additional Collateral;
and (Y) with respect to each Cooperative Loan:
40
(i) the original Mortgage Note endorsed to "State Street Bank
and Trust Company, as Custodian/Trustee," or to "State Street Bank and
Trust Company, as Trustee for the Holders of Washington Mutual Mortgage
Securities Corp. WaMu Mortgage Pass-Through Certificates, Series
2001-S8" and all intervening endorsements evidencing a complete chain
of endorsements, from the originator to the Trustee, or, in the event
of any Destroyed Mortgage Note, a copy or a duplicate original of the
Mortgage Note, together with an original lost note affidavit from the
originator of the related Mortgage Loan or the Company, as applicable,
stating that the original Mortgage Note was lost, misplaced or
destroyed, together with a copy of the related Mortgage Note;
(ii) A counterpart of the Cooperative Lease and the Assignment
of Proprietary Lease to the originator of the Cooperative Loan with
intervening assignments showing an unbroken chain of title from such
originator to the Trustee;
(iii) The related Cooperative Stock Certificate, representing
the related Cooperative Stock pledged with respect to such Cooperative
Loan, together with an undated stock power (or other similar
instrument) executed in blank;
(iv) The original recognition agreement by the Cooperative of
the interests of the mortgagee with respect to the related Cooperative
Loan;
(v) The Security Agreement;
(vi) Copies of the original UCC financing statement, and any
continuation statements, filed by the originator of such Cooperative
Loan as secured party, each with evidence of recording thereof,
evidencing the interest of the originator under the Security Agreement
and the Assignment of Proprietary Lease;
(vii) Copies of the filed UCC assignments or amendments of the
security interest referenced in clause (vi) above showing an unbroken
chain of title from the originator to the Trustee, each with evidence
of recording thereof, evidencing the interest of the originator under
the Security Agreement and the Assignment of Proprietary Lease;
(viii) An executed assignment of the interest of the
originator in the Security Agreement, Assignment of Proprietary Lease
and the recognition agreement referenced in clause (iv) above, showing
an unbroken chain of title from the originator to the Trustee;
(ix) An executed UCC financing statement showing the Company
as debtor and the Trustee as secured party, in a form sufficient for
filing, evidencing the interest of such debtor in the Cooperative
Loans;
(x) For any Cooperative Loan that has been modified or
amended, the original instrument or instruments effecting such
modification or amendment;
(xi) For each Additional Collateral Loan, a copy of the
security agreement or guaranty constituting part of the related
Additional Collateral.
41
Mortgage Interest Rate: For any Mortgage Loan, the per annum rate at
which interest accrues on such Mortgage Loan pursuant to the terms of the
related Mortgage Note.
Mortgage Loan Schedule: The schedule, as amended from time to time, of
Mortgage Loans attached hereto as Exhibit D, which shall set forth as to each
Mortgage Loan the following, among other things:
(i) its loan number,
(ii) the address of the Mortgaged Property,
(iii) the name of the Mortgagor,
(iv) the Original Value of the property subject to the
Mortgage,
(v) the Principal Balance as of the Cut-Off Date (after giving
effect to any Excluded Curtailments),
(vi) the Mortgage Interest Rate borne by the Mortgage Note,
(vii) whether a Primary Insurance Policy is in effect as of
the Cut-Off Date, and, if so, whether such Primary Insurance Policy is
a Special Primary Insurance Policy,
(viii) the maturity of the Mortgage Note,
(ix) the Servicing Fee and the Master Servicing Fee,
(x) its Loan Group,
(xi) whether it is a MERS Loan and, if so, its MIN, and
(xii) whether it imposes penalties for early prepayments.
In addition, the Mortgage Loan Schedule will identify any Mortgage
Loans that are Additional Collateral Loans.
Mortgage Loans: The mortgage loans listed on the Mortgage Loan Schedule
and transferred and assigned to the Trustee pursuant hereto. With respect to
each Mortgage Loan that is a Cooperative Loan, "Mortgage Loan" shall include,
but not be limited to, the related Mortgage Note, Security Agreement, Assignment
of Proprietary Lease, Cooperative Stock Certificate and Cooperative Lease and
(with respect to each Additional Collateral Loan) the security agreements and
guaranties constituting part of the related Additional Collateral, and, with
respect to each Mortgage Loan other than a Cooperative Loan, "Mortgage Loan"
shall include, but not be limited to, the Mortgages, the related Mortgage Notes
and (with respect to each Additional Collateral Loan) the security agreements
and guaranties constituting part of the related Additional Collateral.
Mortgage Note: The note or other evidence of the indebtedness of a
Mortgagor under a Mortgage Loan.
42
Mortgage Pool: All of the Mortgage Loans.
Mortgaged Property: With respect to any Mortgage Loan, other than a
Cooperative Loan, the real property, together with improvements thereto, and,
with respect to any Cooperative Loan, the related Cooperative Stock and
Cooperative Lease, securing the indebtedness of the Mortgagor under the related
Mortgage Loan. "Mortgaged Property" shall also refer to property which once
secured the indebtedness of a Mortgagor under the related Mortgage Loan but
which was acquired by the Trust upon foreclosure or other liquidation of such
Mortgage Loan.
Mortgagor: The obligor on a Mortgage Note.
Nonrecoverable Advance: With respect to any Mortgage Loan, any advance
which the Master Servicer shall determine to be a Nonrecoverable Advance
pursuant to Section 4.03 and which was, or is proposed to be, made by (i) the
Master Servicer or (ii) a Servicer pursuant to its Selling and Servicing
Contract.
Non-Excluded Curtailment: Any Curtailment other than an Excluded
Curtailment.
Non-U.S. Person: A Person that is not a U.S. Person.
Notice: The telephonic or telegraphic notice, promptly confirmed in
writing by telecopy substantially in the form of Exhibit A attached to the
Certificate Insurance Policy, the original of which is subsequently delivered by
registered or certified mail, from the Trustee specifying the Insured Amount
which shall be due and owing on the applicable Distribution Date.
Notice Addresses: (a) In the case of the Company, 00 Xxxxx Xxxxxxx
Xxxxx, Xxxxxx Xxxxx, Xxxxxxxx 00000, Attention: Master Servicing Department,
with a copy to: Washington Mutual Legal Department, 1201 Third Avenue, WMT 1706,
Xxxxxxx, XX 00000, Attention: WMMSC, or such other address as may hereafter be
furnished to the Trustee in writing by the Company, (b) in the case of the
Trustee, at its Corporate Trust Office, or such other address as may hereafter
be furnished to the Trustee in writing by the Company, (b) in the case of the
Trustee, at its Corporate Trust Office, or such other address as may hereafter
be furnished to the Master Servicer in writing by the Trustee, (c) in the case
of the Certificate Registrar, at its Corporate Trust Office, or such other
address as may hereafter be furnished to the Trustee in writing by the
Certificate Registrar, (d) in the case of Moody's, 00 Xxxxxx Xxxxxx, Xxx Xxxx,
Xxx Xxxx 00000, Attention: Monitoring, or such other address as may hereafter be
furnished to the Trustee and Master Servicer in writing by Moody's, (e) in the
case of Fitch, 0 Xxxxx Xxxxxx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: Xxxxx
Xxxxxxxx, or such other address as may hereafter be furnished to the Trustee and
Master Servicer in writing by Fitch and (f) in the case of the Certificate
Insurer, Ambac Assurance Corporation, Xxx Xxxxx Xxxxxx Xxxxx, Xxx Xxxx, Xxx
Xxxx, 00000, Attention: Consumer Asset-Backed Securities Group, or such other
address as may hereafter be furnished to the Trustee and Master Servicer in
writing by the Certificate Insurer.
OTS: The Office of Thrift Supervision, or any successor thereto.
Officer's Certificate: A certificate signed by the Chairman of the
Board, the President, a Vice President, or the Treasurer of the Master Servicer
and delivered to the Trustee.
43
Opinion of Counsel: A written opinion of counsel, who shall be
reasonably acceptable to the Trustee and who may be counsel (including in-house
counsel) for the Company or the Master Servicer.
Original Value: With respect to any Mortgage Loan other than a Mortgage
Loan originated for the purpose of refinancing an existing mortgage debt, the
lesser of (a) the Appraised Value (if any) of the Mortgaged Property at the time
the Mortgage Loan was originated or (b) the purchase price paid for the
Mortgaged Property by the Mortgagor. With respect to a Mortgage Loan originated
for the purpose of refinancing existing mortgage debt, the Original Value shall
be equal to the Appraised Value of the Mortgaged Property. "Original Value"
shall exclude the value of any Additional Collateral.
Owner: Each Holder of an Insured Certificate who, on the applicable
Distribution Date, is entitled under the terms of the Insured Certificates to
payment thereunder.
Ownership Interest: With respect to any Residual Certificate, any
ownership or security interest in such Residual Certificate, including any
interest in a Residual Certificate as the Holder thereof and any other interest
therein whether direct or indirect, legal or beneficial, as owner or as pledgee.
Pass-Through Entity: Any regulated investment company, real estate
investment trust, common trust fund, partnership, trust or estate, and any
organization to which Section 1381 of the Code applies.
Pass-Through Rate: For each Mortgage Loan, a per annum rate equal to
the Mortgage Interest Rate for such Mortgage Loan less the per annum percentage
rates related to each of (i) the Servicing Fee for such Mortgage Loan, (ii) the
Master Servicing Fee for such Mortgage Loan and (iii) if such Mortgage Loan was
covered by a Special Primary Insurance Policy on the Closing Date (even if no
longer so covered), the applicable Special Primary Insurance Premium. For each
Mortgage Loan, any calculation of monthly interest at such rate shall be based
upon annual interest at such rate (computed on the basis of a 360-day year of
twelve 30-day months) on the unpaid Principal Balance of the related Mortgage
Loan divided by twelve, and any calculation of interest at such rate by reason
of a Payoff shall be based upon annual interest at such rate on the outstanding
Principal Balance of the related Mortgage Loan multiplied by a fraction, the
numerator of which is the number of days elapsed from the Due Date of the last
scheduled payment of principal and interest to, but not including, the date of
such Payoff, and the denominator of which is (a) for Payoffs received on a Due
Date, 360, and (b) for all other Payoffs, 365.
Paying Agent: Any paying agent appointed by the Trustee pursuant to
Section 8.12.
Payoff: Any Mortgagor payment (exclusive of any prepayment penalty) of
principal on a Mortgage Loan equal to the entire outstanding Principal Balance
of such Mortgage Loan, if received in advance of the last scheduled Due Date for
such Mortgage Loan and accompanied by an amount of interest equal to accrued
unpaid interest on the Mortgage Loan to the date of such payment-in-full.
44
Payoff Earnings: For any Distribution Date with respect to each
Mortgage Loan on which a Payoff was received by the Master Servicer during the
Payoff Period, the aggregate of the interest earned by the Master Servicer from
investment of each such Payoff from the date of receipt of such Payoff until the
Business Day immediately preceding the related Distribution Date (net of
investment losses).
Payoff Interest: For any Distribution Date with respect to a Mortgage
Loan for which a Payoff was received on or after the first calendar day of the
month of such Distribution Date and before the 15th calendar day of such month,
an amount of interest thereon at the applicable Pass-Through Rate from the first
day of the month of distribution through the day of receipt thereof; to the
extent (together with Payoff Earnings and the aggregate Master Servicing Fee)
not required to be distributed as Compensating Interest on such Distribution
Date, Payoff Interest shall be payable to the Master Servicer as additional
servicing compensation.
Payoff Period: For the first Distribution Date, the period from the
Cut-Off Date through August 14, 2001, inclusive; and for any Distribution Date
thereafter, the period from the 15th day of the Prior Period through the 14th
day of the month of such Distribution Date, inclusive.
Percentage Interest: (a) With respect to the right of each Certificate
of a particular Class in the distributions allocated to such Class, "Percentage
Interest" shall mean the percentage undivided beneficial ownership interest
evidenced by such Certificate of such Class, which percentage shall equal:
(i) with respect to any Certificate (other than the Residual,
Class II-A-9, Class II-A-23 and Class X Certificates), its Certificate
Principal Balance divided by the applicable Class Principal Balance;
(ii) with respect to any Class II-A-9, Class II-A-23 or Class
X Certificate, the portion of the respective Class Notional Amount
evidenced by such Certificate divided by the respective Class Notional
Amount; and
(iii) with respect to any Residual Certificate, the percentage
set forth on the face of such Certificate.
(b) With respect to the rights of each Certificate in connection with
Sections 5.09, 7.01, 8.01(c), 8.02, 8.07, 10.01 and 10.03, "Percentage Interest"
shall mean the percentage undivided beneficial interest evidenced by such
Certificate in REMIC II, which for purposes of such rights only shall equal:
(i) with respect to any Certificate (other than the Class
II-A-9, Class II-A-23, Class X and Residual Certificates), the product
of (x) ninety-six percent (96%) and (y) the percentage calculated by
dividing its Certificate Principal Balance by the Aggregate Certificate
Principal Balance of the Certificates; provided, however, that the
percentage in clause (x) above shall be increased by one percent (1%)
upon the retirement of each Class of Certificates referenced in the
parenthetical above (other than the Residual Certificates);
45
(ii) with respect to any Class II-A-9, Class II-A-23 or Class
X Certificate, one percent (1%) of such Certificate's Percentage
Interest as calculated by paragraph (a)(ii) of this definition; and
(iii) with respect to any Residual Certificate, zero.
Permitted Transferee: With respect to the holding or ownership of any
Residual Certificate, any Person other than (i) the United States, a State or
any political subdivision thereof, or any agency or instrumentality of any of
the foregoing, (ii) a foreign government, International Organization or any
agency or instrumentality of either of the foregoing, (iii) an organization
(except certain farmers' cooperatives described in Code Section 521) which is
exempt from the taxes imposed by Chapter 1 of the Code (unless such organization
is subject to the tax imposed by Section 511 of the Code on unrelated business
taxable income), (iv) rural electric and telephone cooperatives described in
Code Section 1381(a)(2)(C), (v) any "electing large partnership" as defined in
Section 775(a) of the Code, (vi) any Person from whom the Trustee has not
received an affidavit to the effect that it is not a "disqualified organization"
within the meaning of Section 860E(e)(5) of the Code, and (vii) any other Person
so designated by the Company based upon an Opinion of Counsel that the transfer
of an Ownership Interest in a Residual Certificate to such Person may cause
REMIC I or REMIC II, as applicable, to fail to qualify as a REMIC at any time
that the Certificates are outstanding. The terms "United States," "State" and
"International Organization" shall have the meanings set forth in Code Section
7701 or successor provisions. A corporation shall not be treated as an
instrumentality of the United States or of any State or political subdivision
thereof if all of its activities are subject to tax, and, with the exception of
the Xxxxxxx Mac, a majority of its board of directors is not selected by such
governmental unit.
Person: Any individual, corporation, limited liability company,
partnership, joint venture, association, joint-stock company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.
Planned Principal Balance: With respect to the Class II-A-1 and Class
II-A-2 Certificates, the combined amount set forth in the table attached as
Appendix C to the Prospectus, for the applicable Distribution Date, under the
heading "Class II-A-1 and Class II-A-2 Aggregate Planned Principal Balance,"
which amount shall also constitute the "Planned Principal Balance" for their
Corresponding Classes in the aggregate. With respect to the Class II-A-12
Certificates, the amount set forth in the table attached as Appendix C to the
Prospectus, for the applicable Distribution Date, under the heading "Class
II-A-12 Planned Principal Balance," which amount shall also constitute the
"Planned Principal Balance" for its Corresponding Class.
Preference Amount: Any amount previously distributed to a Holder of an
Insured Certificate that is recoverable and sought to be recovered as a voidable
preference by a trustee in bankruptcy pursuant to the United States Bankruptcy
Code (11 U.S.C.) as amended from time to time, in accordance with a final
non-appealable order of a court having competent jurisdiction.
Prepaid Monthly Payment: Any Monthly Payment received prior to its
scheduled Due Date, which is intended to be applied to a Mortgage Loan on its
scheduled Due Date and held in
46
the related Custodial Account for P&I until the Withdrawal Date following its
scheduled Due Date.
Primary Insurance Policy: A policy of mortgage guaranty insurance, if
any, on an individual Mortgage Loan or on pools of mortgage loans that include
an individual Mortgage Loan, providing coverage as required by Section 2.03(xi)
(including any Special Primary Insurance Policy).
Principal Balance: Except as used in Sections 2.02, 3.09 and 9.01 and
for purposes of the definition of Purchase Price, at the time of any
determination, the principal balance of a Mortgage Loan remaining to be paid at
the close of business on the Cut-Off Date, after application of all scheduled
principal payments due on or before the Cut-Off Date, whether or not received,
and after deducting any Excluded Curtailments, reduced by all amounts
distributed or (except when such determination occurs earlier in the month than
the Distribution Date) to be distributed to Certificateholders through the
Distribution Date in the month of determination that are reported as allocable
to principal of such Mortgage Loan.
For purposes of the definition of Purchase Price and as used in
Sections 2.02, 3.09 and 9.01, at the time of any determination, the principal
balance of a Mortgage Loan remaining to be paid at the close of business on the
Cut-Off Date, after deduction of all scheduled principal payments due on or
before the Cut-Off Date, whether or not received, and after deducting any
Excluded Curtailments, reduced by all amounts distributed or to be distributed
to Certificateholders through the Distribution Date in the month of
determination that are reported as allocable to principal of such Mortgage Loan.
In the case of a Substitute Mortgage Loan, "Principal Balance" shall
mean, at the time of any determination, the principal balance of such Substitute
Mortgage Loan transferred to the Trust Fund, on the date of substitution,
reduced by all amounts distributed or to be distributed to Certificateholders
through the Distribution Date in the month of determination that are reported as
allocable to principal of such Substitute Mortgage Loan.
The Principal Balance of a Mortgage Loan (including a Substitute
Mortgage Loan) shall not be adjusted solely by reason of any bankruptcy or
similar proceeding or any moratorium or similar waiver or grace period. Whenever
a Realized Loss has been incurred with respect to a Mortgage Loan during a
calendar month, the Principal Balance of such Mortgage Loan shall be reduced by
the amount of such Realized Loss as of the Distribution Date next following the
end of such calendar month after giving effect to the allocation of Realized
Losses and distributions of principal to the Certificates.
Principal Payment: Any payment of principal on a Mortgage Loan other
than a Principal Prepayment.
Principal Payment Amount: For any Distribution Date and for any Loan
Group, the sum with respect to the Mortgage Loans in such Loan Group of (i) the
scheduled principal payments on the Mortgage Loans due on the related Due Date,
(ii) the principal portion of proceeds received with respect to any Mortgage
Loan which was purchased or repurchased pursuant to a Purchase Obligation or as
permitted by this Agreement during the Prior Period and (iii) any other
47
unscheduled payments of principal which were received with respect to any
Mortgage Loan during the Prior Period, other than Payoffs, Curtailments and
Liquidation Principal.
Principal Prepayment: Any payment of principal on a Mortgage Loan which
constitutes a Payoff or a Non-Excluded Curtailment.
Principal Prepayment Amount: For any Distribution Date and for any Loan
Group, the sum with respect to the Mortgage Loans in such Loan Group of (i)
Non-Excluded Curtailments received during the Prior Period from such Mortgage
Loans and (ii) Payoffs received during the Payoff Period from such Mortgage
Loans.
Prior Period: With respect to any Distribution Date, the calendar month
immediately preceding such Distribution Date.
Pro Rata Allocation: (i) With respect to Realized Losses on Group I
Loans, the allocation of the principal portion of such losses to all Classes of
the Group I-L Regular Interests (other than the Class I-P-L and Class I-X-L
Regular Interests) pro rata according to their respective Class Principal
Balances in reduction thereof (except if the loss is recognized with respect to
a Class I-P Mortgage Loan, in which case the applicable Class I-P Fraction of
such loss shall first be allocated to the Class I-P-L Regular Interest, and the
remainder of such loss shall be allocated as set forth above), and the
allocation of the interest portion of such losses to all Classes of the Group
I-L Regular Interests (other than the Class I-P-L Regular Interest) pro rata
according to the amount of interest accrued but unpaid on each such Class, in
reduction thereof, and then to such Classes (other than the Class I-P-L and
Class I-X-L Regular Interests) pro rata according to their respective Class
Principal Balances in reduction thereof and (ii) with respect to Realized Losses
on Group II Loans, the allocation of the principal portion of such losses to all
Classes of the Group II-L Regular Interests (other than the Class II-X-L and
Class II-P-L Regular Interests) pro rata according to their respective Class
Principal Balances in reduction thereof (except if the loss is recognized with
respect to a Class II-P Mortgage Loan, in which case the applicable Class II-P
Fraction of such loss will first be allocated to the Class II-P-L Regular
Interest, and the remainder of such loss will be allocated as set forth above),
and the allocation of the interest portion of such losses to all Classes of the
Group II-L Regular Interests (other than the Class II-P-L, Class II-A-13-L and
Class II-A-30-L Regular Interests) pro rata according to the amount of interest
accrued but unpaid on each such Class, in reduction thereof, and then to such
Classes (other than the Class II-P-L, Class II-A-13-L, Class II-A-30-L and Class
II-X-L Regular Interests) pro rata according to their respective Class Principal
Balances in reduction thereof; provided, however, that (1) until the Class
II-A-26-L Principal Balance has been reduced to zero, the principal portion of
Realized Losses that would otherwise be allocated to the Class II-A-22-L Regular
Interest pursuant to this definition shall instead be allocated to the Class
II-A-26-L Regular Interest, in reduction of the Class II-A-26-L Principal
Balance, and the interest portion of Realized Losses that would otherwise be
allocated to the Class II-A-22-L Regular Interest pursuant to this definition
shall instead be allocated to the Class II-A-26-L Regular Interest, in reduction
of accrued but unpaid interest thereon, and then in reduction of the Class
II-A-26-L Principal Balance, (2) until the Class II-A-27-L Principal Balance has
been reduced to zero, the principal portion of Realized Losses that would
otherwise be allocated to the Class II-A-21-L Regular Interest pursuant to this
definition shall instead be allocated to the Class II-A-27-L Regular Interest,
in reduction of the Class II-A-27-L Principal Balance, and the interest portion
of Realized Losses that would otherwise be
48
allocated to the Class II-A-21-L Regular Interest pursuant to this definition
shall instead be allocated to the Class II-A-27-L Regular Interest, in reduction
of accrued but unpaid interest thereon, and then in reduction of the Class
II-A-27-L Principal Balance and (3) until the Class II-A-28-L Principal Balance
has been reduced to zero, the principal portion of Realized Losses that would
otherwise be allocated to the Class II-A-11-L Regular Interest pursuant to this
definition shall instead be allocated to the Class II-A-28-L Regular Interest,
in reduction of the Class II-A-28-L Principal Balance, and the interest portion
of Realized Losses that would otherwise be allocated to the Class II-A-11-L
Regular Interest pursuant to this definition shall instead be allocated to the
Class III-A-28-L Regular Interest, in reduction of accrued but unpaid interest
thereon, and then in reduction of the Class III-A-28-L Principal Balance.
Any losses allocated to an outstanding Class of REMIC I Regular
Interests pursuant to this definition of "Pro Rata Allocation" in reduction of
the Class Principal Balance thereof shall also be allocated to the Corresponding
Class of Certificates in reduction of the Class Principal Balance thereof by the
same amount.
Prospectus: The Prospectus, dated May 25, 2001, and the Prospectus
Supplement, dated July 26, 2001, of the Company.
Purchase Obligation: An obligation of the Company to repurchase
Mortgage Loans under the circumstances and in the manner provided in Section
2.02 or Section 2.03.
Purchase Price: With respect to any Mortgage Loan to be purchased
pursuant to a Purchase Obligation or pursuant to Section 3.01, an amount equal
to the sum of (i) the Principal Balance thereof and (ii) unpaid accrued interest
thereon, if any, during the calendar month in which the date of purchase occurs
to the last day of such month at a rate equal to the applicable Pass-Through
Rate; provided, however, that no Mortgage Loan shall be purchased or required to
be purchased pursuant to Section 2.03, or more than two years after the Closing
Date under Section 2.02, unless (a) the Mortgage Loan to be purchased is in
default, or default is in the judgment of the Company reasonably imminent, or
(b) the Company, at its expense, delivers to the Trustee an Opinion of Counsel
to the effect that the purchase of such Mortgage Loan will not give rise to a
tax on a prohibited transaction, as defined in Section 860F(a) of the Code.
Qualified Insurer: A mortgage guaranty insurance company duly qualified
as such under the laws of the states in which the Mortgaged Properties are
located if such qualification is necessary to issue the applicable insurance
policy or bond, duly authorized and licensed in such states to transact the
applicable insurance business and to write the insurance provided by the Primary
Insurance Policies and approved as an insurer by Xxxxxxx Mac or Xxxxxx Mae and
the Master Servicer. A Qualified Insurer must have the rating required by the
Rating Agencies.
Random Lot: With respect to any Distribution Date on which a mandatory
distribution is to be made on the Special Retail Certificates (as described in
Section 4.06), the method by which DTC will determine which Special Retail
Certificates will be paid principal, using its established random lot procedures
or, if such Certificates are no longer represented by a Book-Entry Certificate,
using the Trustee's procedures.
49
Rating Agency: Initially, each of Xxxxx'x and Fitch and thereafter,
each nationally recognized statistical rating organization that has rated the
Certificates at the request of the Company, or their respective successors in
interest.
Ratings: As of any date of determination, the ratings, if any, of the
Certificates as assigned by the Rating Agencies.
Realized Loss: For any Distribution Date, with respect to any Mortgage
Loan which became a Liquidated Mortgage Loan during the related Prior Period,
the sum of (i) the principal balance of such Mortgage Loan remaining outstanding
and the principal portion of Nonrecoverable Advances actually reimbursed with
respect to such Mortgage Loan (the principal portion of such Realized Loss), and
(ii) the accrued interest on such Mortgage Loan remaining unpaid and the
interest portion of Nonrecoverable Advances actually reimbursed with respect to
such Mortgage Loan (the interest portion of such Realized Loss). For any
Distribution Date, with respect to any Mortgage Loan which is not a Liquidated
Mortgage Loan, the amount of the Bankruptcy Loss incurred with respect to such
Mortgage Loan as of the related Due Date.
Except for Special Hazard Losses in excess of the Special Hazard
Coverage for Loan Group I, Fraud Losses in excess of the Fraud Coverage for Loan
Group I and Bankruptcy Losses in excess of the Bankruptcy Coverage for Loan
Group I, Realized Losses with respect to the Group I Loans shall be allocated
among the Group I-L Regular Interests (i) for Realized Losses allocable to
principal (a) first, to the Class I-B-6-L Regular Interest, until the Class
I-B-6-L Principal Balance has been reduced to zero, (b) second, to the Class
I-B-5-L Regular Interest, until the Class I-B-5-L Principal Balance has been
reduced to zero, (c) third, to the Class I-B-4-L Regular Interest, until the
Class I-B-4-L Principal Balance has been reduced to zero, (d) fourth, to the
Class I-B-3-L Regular Interest, until the Class I-B-3-L Principal Balance has
been reduced to zero, (e) fifth, to the Class I-B-2-L Regular Interest, until
the Class I-B-2-L Principal Balance has been reduced to zero, (f) sixth, to the
Class I-B-1-L Regular Interest, until the Class I-B-1-L Principal Balance has
been reduced to zero, and (g) seventh, to the Class I-A-1-L Regular Interest in
reduction of the Class Principal Balance thereof; provided, however, that if the
loss is recognized with respect to a Class I-P Mortgage Loan, the applicable
Class I-P Fraction of such loss shall first be allocated to the Class I-P-L
Regular Interest and the remainder of such loss shall be allocated as set forth
above in this clause (i); and (ii) for Realized Losses allocable to interest (a)
first, to the Class I-B-6-L Regular Interest, in reduction of accrued but unpaid
interest thereon and then in reduction of the Class I-B-6-L Principal Balance,
(b) second, to the Class I-B-5-L Regular Interest, in reduction of accrued but
unpaid interest thereon and then in reduction of the Class I-B-5-L Principal
Balance, (c) third, to the Class I-B-4-L Regular Interest, in reduction of
accrued but unpaid interest thereon and then in reduction of the Class I-B-4-L
Principal Balance, (d) fourth, to the Class I-B-3-L Regular Interest, in
reduction of accrued but unpaid interest thereon and then in reduction of the
Class I-B-3-L Principal Balance, (e) fifth, to the Class I-B-2-L Regular
Interest, in reduction of accrued but unpaid interest thereon and then in
reduction of the Class I-B-2-L Principal Balance, (f) sixth, to the Class
I-B-1-L Regular Interest, in reduction of accrued but unpaid interest thereon
and then in reduction of the Class I-B-1-L Principal Balance, and (g) seventh,
to the Class I-A-1-L and I-X-L Regular Interests, pro rata according to accrued
but unpaid interest on such Classes, in reduction thereof, and then to the Class
I-A-1-L Regular Interest in reduction of the Class Principal Balance thereof.
50
Except for Special Hazard Losses in excess of the Special Hazard
Coverage for Loan Group II, Fraud Losses in excess of the Fraud Coverage for
Loan Group II and Bankruptcy Losses in excess of the Bankruptcy Coverage for
Loan Group II, Realized Losses with respect to the Group II Loans shall be
allocated among the Group II-L Regular Interests (i) for Realized Losses
allocable to principal (a) first, to the Class II-B-6-L Regular Interest, until
the Class II-B-6-L Principal Balance has been reduced to zero, (b) second, to
the Class II-B-5-L Regular Interest, until the Class II-B-5-L Principal Balance
has been reduced to zero, (c) third, to the Class II-B-4-L Regular Interest,
until the Class II-B-4-L Principal Balance has been reduced to zero, (d) fourth,
to the Class II-B-3-L Regular Interest, until the Class II-B-3-L Principal
Balance has been reduced to zero, (e) fifth, to the Class II-B-2-L Regular
Interest, until the Class II-B-2-L Principal Balance has been reduced to zero,
(f) sixth, to the Class II-B-1-L Regular Interest, until the Class II-B-1-L
Principal Balance has been reduced to zero, and (g) seventh, to the Group II-A-L
Regular Interests pro rata according to the Class Principal Balance thereof, in
reduction thereof; provided, however, that if the loss is recognized with
respect to a Class II-P Mortgage Loan, the applicable Class II-P Fraction of
such loss shall first be allocated to the Class II-P-L Regular Interest and the
remainder of such loss shall be allocated as set forth above in this clause (i);
and (ii) for Realized Losses allocable to interest (a) first, to the Class
II-B-6-L Regular Interest, in reduction of accrued but unpaid interest thereon
and then in reduction of the Class II-B-6-L Principal Balance, (b) second, to
the Class II-B-5-L Regular Interest, in reduction of accrued but unpaid interest
thereon and then in reduction of the Class II-B-5-L Principal Balance, (c)
third, to the Class II-B-4-L Regular Interest, in reduction of accrued but
unpaid interest thereon and then in reduction of the Class II-B-4-L Principal
Balance, (d) fourth, to the Class II-B-3-L Regular Interest, in reduction of
accrued but unpaid interest thereon and then in reduction of the Class II-B-3-L
Principal Balance, (e) fifth, to the Class II-B-2-L Regular Interest, in
reduction of accrued but unpaid interest thereon and then in reduction of the
Class II-B-2-L Principal Balance, (f) sixth, to the Class II-B-1-L Regular
Interest, in reduction of accrued but unpaid interest thereon and then in
reduction of the Class II-B-1-L Principal Balance, and (g) seventh, to the Class
II-X-L and Group II-A-L Regular Interests (other than the Class II-A-13-L and
Class II-A-30-L Regular Interests), pro rata according to accrued but unpaid
interest on such Classes, in reduction thereof, and then to the Class II-A-L
Regular Interests (other than the Class II-A-13-L and Class II-A-30-L Regular
Interests), pro rata according to the Class Principal Balance thereof, in
reduction thereof; provided, however, that (1) until the Class II-A-26-L
Principal Balance has been reduced to zero, all principal losses that would
otherwise be allocated to the Class II-A-22-L Regular Interest pursuant clause
(i) of this paragraph shall instead be allocated to the Class II-A-26-L Regular
Interest, in reduction of the Class II-A-26-L Principal Balance, and all
interest losses that would otherwise be allocated to the Class II-A-22-L Regular
Interest pursuant to clause (ii) of this paragraph shall instead be allocated to
the Class II-A-26-L Regular Interest, in reduction of accrued but unpaid
interest thereon, and then in reduction of the Class II-A-26-L Principal
Balance, (2) until the Class II-A-27-L Principal Balance has been reduced to
zero, all principal losses that would otherwise be allocated to the Class
II-A-21-L Regular Interest pursuant clause (i) of this paragraph shall instead
be allocated to the Class II-A-27-L Regular Interest, in reduction of the Class
II-A-27-L Principal Balance, and all interest losses that would otherwise be
allocated to the Class II-A-21-L Regular Interest pursuant to clause (ii) of
this paragraph shall instead be allocated to the Class II-A-27-L Regular
Interest, in reduction of accrued but unpaid interest thereon, and then in
reduction of the Class II-A-27-L Principal Balance and (3) until the Class
II-A-28-L Principal Balance has been reduced to zero,
51
all principal losses that would otherwise be allocated to the Class II-A-11-L
Regular Interest pursuant clause (i) of this paragraph shall instead be
allocated to the Class II-A-28-L Regular Interest, in reduction of the Class
II-A-28-L Principal Balance, and all interest losses that would otherwise be
allocated to the Class II-A-11-L Regular Interest pursuant to clause (ii) of
this paragraph shall instead be allocated to the Class II-A-28-L Regular
Interest, in reduction of accrued but unpaid interest thereon, and then in
reduction of the Class II-A-28-L Principal Balance.
Special Hazard Losses on Group I Loans in excess of the Special Hazard
Coverage for Loan Group I, Fraud Losses on Group I Loans in excess of the Fraud
Coverage for Loan Group I and Bankruptcy Losses on Group I Loans in excess of
the Bankruptcy Coverage for Loan Group I shall be allocated among the Group I-L
Regular Interests by Pro Rata Allocation.
Special Hazard Losses on Group II Loans in excess of the Special Hazard
Coverage for Loan Group II, Fraud Losses on Group II Loans in excess of the
Fraud Coverage for Loan Group II and Bankruptcy Losses on Group II Loans in
excess of the Bankruptcy Coverage for Loan Group II shall be allocated among the
Group II-L Regular Interests by Pro Rata Allocation.
Realized Losses allocated to any Class of REMIC I Regular Interests
pursuant to this definition of "Realized Loss" in reduction of the Class
Principal Balance thereof shall also be allocated to the Corresponding Class of
Certificates in reduction of the Class Principal Balance thereof by the same
amount.
On each Distribution Date, after giving effect to the principal
distributions and allocations of losses as provided in this Agreement (without
regard to this paragraph), if the aggregate Class Principal Balance of all
outstanding Classes of Group I-L Regular Interests exceeds the aggregate
principal balance of the Group I Loans remaining to be paid at the close of
business on the Cut-Off Date, after deduction of (i) all principal payments due
on or before the Cut-Off Date in respect of each such Mortgage Loan whether or
not paid, and all Excluded Curtailments, and (ii) all amounts of principal in
respect of each Mortgage Loan that have been received or advanced and included
in the REMIC I Available Distribution Amount for Loan Group I and all losses in
respect of each Mortgage Loan that have been allocated to the Group I-L Regular
Interests on such Distribution Date or prior Distribution Dates, then such
excess will be deemed a principal loss and will be allocated to the most junior
Class of Group I-B-L Regular Interests, in reduction of the Class Principal
Balance thereof.
On each Distribution Date, after giving effect to the principal
distributions and allocations of losses as provided in this Agreement (without
regard to this paragraph), if the aggregate Class Principal Balance of all
outstanding Classes of Group II-L Regular Interests and the Class R-1
Certificates exceeds the aggregate principal balance of the Group II Loans
remaining to be paid at the close of business on the Cut-Off Date, after
deduction of (i) all principal payments due on or before the Cut-Off Date in
respect of each such Mortgage Loan whether or not paid, and all Excluded
Curtailments, and (ii) all amounts of principal in respect of each Mortgage Loan
that have been received or advanced and included in the REMIC I Available
Distribution Amount for Loan Group II and all losses in respect of each Mortgage
Loan that have been allocated to the Group II-L Regular Interests on such
Distribution Date or prior Distribution Dates, then such excess will be deemed a
principal loss and will be allocated to
52
the most junior Class of Group II-X-X Regular Interests, in reduction of the
Class Principal Balance thereof.
Record Date: The last Business Day of the month immediately preceding
the month of the related Distribution Date.
Regular Interest Group: The Group I-L or Group II-L Regular Interests,
as applicable.
Regular Interests: (i) With respect to REMIC I, the REMIC I Regular
Interests and (ii) with respect to REMIC II, the REMIC II Regular Interests.
Relief Act: The Soldiers' and Sailors' Civil Relief Act of 1940, as
amended. Interest shortfalls related to the Relief Act shall be allocated in the
same manner as Realized Losses attributable to interest are allocated.
REMIC: A real estate mortgage investment conduit, as such term is
defined in the Code.
REMIC Provisions: Sections 860A through 860G of the Code, related Code
provisions and regulations promulgated thereunder, as the foregoing may be in
effect from time to time.
REMIC I: The segregated pool of assets consisting of the REMIC I Trust
Fund, with respect to which a separate REMIC election is to be made.
REMIC I Available Distribution Amount: For each Loan Group for any
Distribution Date, the sum of the following amounts with respect to the Mortgage
Loans in such Loan Group:
(1) the total amount of all cash received by or on behalf of the Master
Servicer with respect to such Mortgage Loans by the Determination Date for such
Distribution Date and not previously distributed, including Monthly P&I Advances
made by Servicers, Liquidation Proceeds and scheduled amounts of distributions
from Buydown Funds respecting Buydown Loans, if any, except:
(a) all scheduled payments of principal and interest collected
but due subsequent to such Distribution Date;
(b) all Curtailments received after the Prior Period and, with
respect to the first Distribution Date, any Excluded Curtailments;
(c) all Payoffs received after the Payoff Period immediately
preceding such Distribution Date (together with any interest payment
received with such Payoffs to the extent that it represents the payment
of interest accrued on the Mortgage Loans for the period subsequent to
the Prior Period), and interest which was accrued and received on
Payoffs received during the period from the 1st to the 14th day of the
month of such Distribution Date, which interest shall not be included
in the calculation of the REMIC I Available Distribution Amount for any
Distribution Date;
(d) Insurance Proceeds and Liquidation Proceeds received on
such Mortgage Loans after the Prior Period;
53
(e) all amounts in the Certificate Account which are due and
reimbursable to a Servicer or the Master Servicer pursuant to the terms
of this Agreement;
(f) the sum of the Master Servicing Fee and the Servicing Fee
for each such Mortgage Loan, any Special Primary Insurance Premium
payable on such Distribution Date with respect to such Mortgage Loan
and, for Loan Group II, the Certificate Insurer Premium; and
(g) Excess Liquidation Proceeds;
(2) the sum, to the extent not previously distributed, of the following
amounts, to the extent advanced or received, as applicable, by the Master
Servicer:
(a) any Monthly P&I Advance made by the Master Servicer to the
Trustee with respect to such Distribution Date relating to such
Mortgage Loans; and
(b) Compensating Interest; and
(3) the total amount, to the extent not previously distributed, of all
cash received by the Distribution Date by the Trustee or the Master Servicer, in
respect of a Purchase Obligation under Section 2.02 and Section 2.03 or any
permitted purchase of such a Mortgage Loan.
REMIC I Distribution Amount: (I) For any Distribution Date prior to the
Group I or Group II Credit Support Depletion Date, as applicable, the REMIC I
Available Distribution Amount for such Distribution Date shall be distributed to
the REMIC I Regular Interests, the Class R-1 Certificates and the Certificate
Insurer in the following amounts and priority:
(a) With respect to the Class I-L Regular Interests and the Class R-1
Certificates, on any Distribution Date prior to the Group I Credit Support
Depletion Date, to the extent of the REMIC I Available Distribution Amount for
Loan Group I for such Distribution Date:
(i) first, to the Class I-P-L Regular Interest, the aggregate
for all Class I-P Mortgage Loans of the product for each Class I-P
Mortgage Loan of the applicable Class I-P Fraction and the sum of (x)
scheduled payments of principal on such Class I-P Mortgage Loan due on
or before the related Due Date in respect of which no distribution has
been made on any previous Distribution Date and which were received by
the Determination Date, or which have been advanced as part of a
Monthly P&I Advance with respect to such Distribution Date, (y) the
principal portion received in respect of such Class I-P Mortgage Loan
during the Prior Period of (1) Non-Excluded Curtailments, (2) Insurance
Proceeds, (3) the amount, if any, of the principal portion of the
Purchase Price paid pursuant to a Purchase Obligation or any purchase
of a Mortgage Loan permitted hereunder and (4) Liquidation Proceeds and
(z) the principal portion of Payoffs received in respect of such Class
I-P Mortgage Loan during the Payoff Period;
(ii) second, to the Class I-A-1-L and Class I-X-L Regular
Interests, concurrently, the sum of the Interest Distribution Amounts
for such Classes of Regular Interests remaining unpaid from previous
Distribution Dates, pro rata according to their respective shares of
such unpaid amounts;
54
(iii) third, to the Class I-A-1-L and Class I-X-L Regular
Interests, concurrently, the sum of the Interest Distribution Amounts
for such Classes of Regular Interests for the current Distribution
Date, pro rata according to their respective Interest Distribution
Amounts;
(iv) fourth, to the Class I-A-1-L Regular Interest, as
principal, the Group I Senior Principal Distribution Amount;
(v) fifth, to the Class I-P-L Regular Interest, to the extent
of amounts otherwise available to pay the Group I Subordinate Principal
Distribution Amount (without regard to clause (B) of the definition
thereof) on such Distribution Date, the amount payable to such Class of
Regular Interests on previous Distribution Dates pursuant to clause
(I)(a)(vi) of this definition of "REMIC I Distribution Amount" and
remaining unpaid from such previous Distribution Dates;
(vi) sixth, to the Class I-P-L Regular Interest, to the extent
of amounts otherwise available to pay the Group I Subordinate Principal
Distribution Amount (without regard to clause (B) of the definition
thereof) on such Distribution Date, principal in an amount equal to the
Class I-P Fraction of any Realized Loss on a Class I-P Mortgage Loan
incurred in the Prior Period (other than a Realized Loss which,
pursuant to the definition of "Realized Loss," is allocated by Pro Rata
Allocation); provided, that any amounts distributed in respect of
losses pursuant to paragraph (I)(a)(v) or this paragraph (I)(a)(vi) of
this definition of "REMIC I Distribution Amount" shall not cause a
further reduction in the Class I-P-L Principal Balance;
(vii) seventh, to the Class I-B-1-L Regular Interest, the
Interest Distribution Amount for such Class of Regular Interests
remaining unpaid from previous Distribution Dates;
(viii) eighth, to the Class I-B-1-L Regular Interest, the
Interest Distribution Amount for such Class of Regular Interests for
the current Distribution Date;
(ix) ninth, to the Class I-B-1-L Regular Interest, the portion
of the Group I Subordinate Principal Distribution Amount allocable to
such Class of Regular Interests pursuant to the definition of "Group I
Subordinate Principal Distribution Amount," until the Class I-B-1-L
Principal Balance has been reduced to zero;
(x) tenth, to the Class I-B-2-L Regular Interest, the Interest
Distribution Amount for such Class of Regular Interests remaining
unpaid from previous Distribution Dates;
(xi) eleventh, to the Class I-B-2-L Regular Interest, the
Interest Distribution Amount for such Class of Regular Interests for
the current Distribution Date;
(xii) twelfth, to the Class I-B-2-L Regular Interest, the
portion of the Group I Subordinate Principal Distribution Amount
allocable to such Class of Regular Interests pursuant to the definition
of "Group I Subordinate Principal Distribution Amount," until the Class
I-B-2-L Principal Balance has been reduced to zero;
55
(xiii) thirteenth, to the Class I-B-3-L Regular Interest, the
Interest Distribution Amount for such Class of Regular Interests
remaining unpaid from previous Distribution Dates;
(xiv) fourteenth, to the Class I-B-3-L Regular Interest, the
Interest Distribution Amount for such Class of Regular Interests for
the current Distribution Date;
(xv) fifteenth, to the Class I-B-3-L Regular Interest, the
portion of the Group I Subordinate Principal Distribution Amount
allocable to such Class of Regular Interests pursuant to the definition
of "Group I Subordinate Principal Distribution Amount," until the Class
I-B-3-L Principal Balance has been reduced to zero;
(xvi) sixteenth, to the Class I-B-4-L Regular Interest, the
Interest Distribution Amount for such Class of Regular Interests
remaining unpaid from previous Distribution Dates;
(xvii) seventeenth, to the Class I-B-4-L Regular Interest, the
Interest Distribution Amount for such Class of Regular Interests for
the current Distribution Date;
(xviii) eighteenth, to the Class I-B-4-L Regular Interest, the
portion of the Group I Subordinate Principal Distribution Amount
allocable to such Class of Regular Interests pursuant to the definition
of "Group I Subordinate Principal Distribution Amount," until the Class
I-B-4-L Principal Balance has been reduced to zero;
(xix) nineteenth, to the Class I-B-5-L Regular Interest, the
Interest Distribution Amount for such Class of Regular Interests
remaining unpaid from previous Distribution Dates;
(xx) twentieth, to the Class I-B-5-L Regular Interest, the
Interest Distribution Amount for such Class of Regular Interests for
the current Distribution Date;
(xxi) twenty-first, to the Class I-B-5-L Regular Interest, the
portion of the Group I Subordinate Principal Distribution Amount
allocable to such Class of Regular Interests pursuant to the definition
of "Group I Subordinate Principal Distribution Amount," until the Class
I-B-5-L Principal Balance has been reduced to zero;
(xxii) twenty-second, to the Class I-B-6-L Regular Interest,
the Interest Distribution Amount for such Class of Regular Interests
remaining unpaid from previous Distribution Dates;
(xxiii) twenty-third, to the Class I-B-6-L Regular Interest,
the Interest Distribution Amount for such Class of Regular Interests
for the current Distribution Date;
(xxiv) twenty-fourth, to the Class I-B-6-L Regular Interest,
the portion of the Group I Subordinate Principal Distribution Amount
allocable to such Class of Regular Interests pursuant to the definition
of "Group I Subordinate Principal Distribution Amount," until the Class
I-B-6-L Principal Balance has been reduced to zero;
56
(xxv) twenty-fifth, to each Class of Group I-L Regular
Interests in the order of seniority (which, from highest to lowest,
shall be as follows: the Class I-A-1-L and Class I-P-L Regular
Interests of equal seniority, and then Class I-B-1-L, Class I-B-2-L,
Class I-B-3-L, Class I-B-4-L, Class I-B-5-L and Class I-B-6-L of
decreasing seniority) and, in the case of Classes of Regular Interests
of equal seniority, allocated among such Classes according to the
amount of losses previously allocated thereto, the remaining portion,
if any, of the REMIC I Available Distribution Amount for Loan Group I,
up to the amount of unreimbursed Realized Losses allocable to principal
previously allocated to such Class, if any; provided, however, that any
amounts distributed pursuant to this paragraph (I)(a)(xxv) of this
definition of "REMIC I Distribution Amount" shall not cause a further
reduction in the Class Principal Balances of any of the Group I-L
Regular Interests; and
(xxvi) twenty-sixth, to the Class R-1 Certificates, the
Residual Distribution Amount for Loan Group I for such Distribution
Date; and
(b) With respect to the Group II-L Regular Interests, the Class R-1
Certificates and the Certificate Insurer, on any Distribution Date prior to the
Group II Credit Support Depletion Date, to the extent of the REMIC I Available
Distribution Amount for Loan Group II for such Distribution Date:
(i) first, to the Class II-P-L Regular Interest, the aggregate
for all Class II-P Mortgage Loans of the product for each Class II-P
Mortgage Loan of the applicable Class II-P Fraction and the sum of (x)
scheduled payments of principal on such Class II-P Mortgage Loan due on
or before the related Due Date in respect of which no distribution has
been made on any previous Distribution Date and which were received by
the Determination Date, or which have been advanced as part of a
Monthly P&I Advance with respect to such Distribution Date, (y) the
principal portion received in respect of such Class II-P Mortgage Loan
during the Prior Period of (1) Non-Excluded Curtailments, (2) Insurance
Proceeds, (3) the amount, if any, of the principal portion of the
Purchase Price paid pursuant to a Purchase Obligation or any purchase
of a Mortgage Loan permitted hereunder and (4) Liquidation Proceeds and
(z) the principal portion of Payoffs received in respect of such Class
II-P Mortgage Loan during the Payoff Period;
(ii) second, to the Group II-A-L, Class II-X-L and Class R-2-L
Regular Interests and the Class R-1 Certificates, concurrently, the sum
of the Interest Distribution Amounts for such Classes of Regular
Interests and Certificates remaining unpaid from previous Distribution
Dates, pro rata according to their respective shares of such unpaid
amounts; provided, however, that (1) on or before the Class II-A-22
Accretion Termination Date, the amount that would otherwise be payable
to the Class II-A-22-L Regular Interest pursuant to this clause
(I)(b)(ii) will be paid instead as principal as set forth in clause
(I)(b)(iii)(b) of this definition of "REMIC I Distribution Amount," (2)
on or before the Class II-A-15 Accretion Termination Date, the amount
that would otherwise be payable to the Class II-A-15-L Regular Interest
pursuant to this clause (I)(b)(ii) will be paid instead as principal as
set forth in clause (I)(b)(iii)(c) of this definition of "REMIC I
Distribution Amount" and (3) on or before the Class II-A-16 Accretion
Termination Date, the amount that would otherwise be payable to the
Class II-A-16-L Regular Interest
57
pursuant to this clause (I)(b)(ii) will be paid instead as principal as
set forth in clause (I)(b)(iii)(c) of this definition of "REMIC I
Distribution Amount";
(iii) third,
(a) to the Group II-A-L, Class II-X-L and Class R-2-L
Regular Interests and the Class R-1 Certificates,
concurrently, the sum of the Interest Distribution Amounts for
such Classes of Regular Interests and Certificates for the
current Distribution Date, pro rata according to their
respective Interest Distribution Amounts; provided, however,
that (1) on or before the Class II-A-22 Accretion Termination
Date, the amount that would otherwise be payable to the Class
II-A-22-L Regular Interest pursuant to this clause
(I)(b)(iii)(a) will be paid instead as principal as set forth
in clause (I)(b)(iii)(b) of this definition of "REMIC I
Distribution Amount," (2) on or before the Class II-A-15
Accretion Termination Date, the amount that would otherwise be
payable to the Class II-A-15-L Regular Interest pursuant to
this clause (I)(b)(iii)(a) will be paid instead as principal
as set forth in clause (I)(b)(iii)(c) of this definition of
"REMIC I Distribution Amount" and (3) on or before the Class
II-A-16 Accretion Termination Date, the amount that would
otherwise be payable to the Class II-A-16-L Regular Interest
pursuant to this clause (I)(b)(iii)(a) will be paid instead as
principal as set forth in clause (I)(b)(iii)(c) of this
definition of "REMIC I Distribution Amount";
(b) on or before the Class II-A-22 Accretion
Termination Date, the Class II-A-22 Accrual Amount, as
principal, sequentially, as follows:
(1) first, to the Class II-A-18-L Regular
Interest, until the Class I-A-18-L Principal Balance
has been reduced to zero;
(2) second, to the Class II-A-19-L Regular
Interest, until the Class I-A-19-L Principal Balance
has been reduced to zero;
(3) third, to the Class II-A-20-L Regular
Interest, until the Class I-A-20-L Principal Balance
has been reduced to zero;
(4) fourth, to the Class II-A-21-L Regular
Interest, until the Class I-A-21-L Principal Balance
has been reduced to zero;
(5) fifth, to the Class II-A-29-L and Class
II-A-30-L Regular Interests, pro rata, until the
Class II-A-29-L and Class II-A-30-L Principal
Balances have each been reduced to zero;
(6) sixth, to the Class II-A-14-L Regular
Interest, until the Class I-A-14-L Principal Balance
has been reduced to zero;
(7) seventh, to the Class II-A-11-L Regular
Interest, until the Class I-A-11-L Principal Balance
has been reduced to zero;
58
(8) eighth, to the Class II-A-17-L Regular
Interest, until the Class I-A-17-L Principal Balance
has been reduced to zero;
(9) ninth, to the Class II-A-15-L Regular
Interest, until the Class I-A-15-L Principal Balance
has been reduced to zero;
(10) tenth, to the Class II-A-16-L Regular
Interest, until the Class I-A-16-L Principal Balance
has been reduced to zero; and
(11) eleventh, to the Class II-A-22-L
Regular Interest, until the Class I-A-22-L Principal
Balance has been reduced to zero; and
(c) on or before (x) the Class II-A-15 Accretion
Termination Date, (y) the Class II-A-16 Accretion Termination
Date or (z) both the Class II-A-15 Accretion Termination Date
and the Class II-A-16 Accretion Termination Date, the sum of
the Class II-A-15 Accrual Amount and the Class II-A-16 Accrual
Amount, as principal, sequentially, as follows:
(1) first, to the Class II-A-14-L Regular
Interest, up to the amount necessary to reduce the
Class II-A-14-L Principal Balance to the Targeted
Principal Balance for that Distribution Date;
(2) second, to the Class II-A-15-L Regular
Interest, until the Class I-A-15-L Principal Balance
has been reduced to zero;
(3) third, to the Class II-A-14-L Regular
Interest (without regard to its Targeted Principal
Balance), until the Class I-A-14-L Principal Balance
has been reduced to zero; and
(4) fourth, to the Class II-A-16-L Regular
Interest, until the Class I-A-16-L Principal Balance
has been reduced to zero;
(iv) fourth, to the Group II-A-L and Class R-2-L Regular
Interests and the Class R-1 Certificates, as principal, the Group II
Senior Principal Distribution Amount, sequentially, as follows:
(a) first, sequentially, to the Class R-2-L Regular
Interest and the Class R-1 Certificates, until their
respective Class Principal Balances have each been reduced to
zero;
(b) second, to the Class II-A-24-L, Class II-A-25-L,
Class II-A-26-L, Class II-A-27-L and Class II-A-28-L Regular
Interests, pro rata, an amount, up to the amount of the Group
II Lockout Priority Amount for that Distribution Date, until
the Class II-A-24-L, Class II-A-25-L, Class II-A-26-L, Class
II-A-27-L and Class II-A-28-L Principal Balances have each
been reduced to zero;
(c) third, an amount equal to 4.607% of the Group II
Senior Principal Distribution Amount remaining after steps (a)
and (b), sequentially, as follows:
59
(1) first, to the Class II-A-12-L Regular
Interest, up to the amount necessary to reduce the
Class II-A-12-L Principal Balance to its Planned
Principal Balance for such Distribution Date;
(2) second, concurrently, as follows:
(A) 3.5716072545% to the Class
II-A-13-L Regular Interest, until the Class
II-A-13-L Principal Balance has been reduced
to zero; and
(B) 96.0000000000%, sequentially,
as follows:
(I) first, up to the amount
necessary to reduce the aggregate
Class Principal Balance of the Class
II-A-3-L, Class II-A-4-L, Class
II-A-5-L, Class II-A-6-L, Class
II-A-7-L and Class II-A-8-L Regular
Interests to their Targeted
Principal Balance for such
Distribution Date, that amount to be
distributed sequentially, as
follows:
(a) first, to the
Class II-A-3-L and Class
II-A-4-L Regular Interests,
pro rata, until the Class
II-A-3-L and Class II-A-4-L
Principal Balances have
each been reduced to zero;
(b) second, to the
Class II-A-5-L and Class
II-A-6-L Regular Interests,
pro rata, until the Class
II-A-5-L and Class II-A-6-L
Principal Balances have
each been reduced to zero;
and
(c) third, to the
Class II-A-7-L and Class
II-A-8-L Regular Interests,
pro rata, until the Class
II-A-7-L and Class II-A-8-L
Principal Balances have
each been reduced to zero;
(II) second, to the Class
II-A-10-L Regular Interest, until
the Class II-A-10-L Principal
Balance has been reduced to zero;
(III) third, to the Class
II-A-3-L and Class II-A-4-L Regular
Interests (without regard to their
Targeted Principal Balance), pro
rata, until the Class II-A-3-L and
Class II-A-4-L Principal Balances
have each been reduced to zero;
(IV) fourth, to the Class
II-A-5-L and Class II-A-6-L Regular
Interests (without regard to their
Targeted Principal Balance), pro
rata, until the Class II-A-5-L and
60
Class II-A-6-L Principal Balances
have each been reduced to zero; and
(V) fifth, to the Class
II-A-7-L and Class II-A-8-L Regular
Interests (without regard to their
Targeted Principal Balance), pro
rata, until the Class II-A-7-L and
Class II-A-8-L Principal Balances
have each been reduced to zero; and
(3) third, to the Class II-A-12-L Regular
Interest (without regard to its Planned Principal
Balance), until the Class II-A-12-L Principal Balance
has been reduced to zero;
(d) fourth, an amount equal to 15.92% of the Group II
Senior Principal Distribution Amount remaining after steps
(a), (b) and (c), to the Class II-A-17-L Regular Interest,
until the Class II-A-17-L Principal Balance has been reduced
to zero;
(e) fifth, an amount equal to 27.4% of the Group II
Senior Principal Distribution Amount remaining after steps (a)
through (d), to the Class II-A-11-L Regular Interest, until
the Class II-A-11-L Principal Balance has been reduced to
zero;
(f) sixth, up to the amount necessary to reduce the
aggregate Class Principal Balance of the Class II-A-1-L and
Class II-A-2-L Regular Interests to their Planned Principal
Balance for such Distribution Date, that amount to be
distributed sequentially, as follows:
(1) first, to the Class II-A-1-L Regular
Interest, until the Class II-A-1-L Principal Balance
has been reduced to zero; and
(2) second, to the Class II-A-2-L Regular
Interest, until the Class II-A-2-L Principal Balance
has been reduced to zero;
(g) seventh, to the Class II-A-14-L Regular Interest,
up to the amount necessary to reduce the Class II-A-14-L
Principal Balance to its Targeted Principal Balance for such
Distribution Date;
(h) eighth, to the Class II-A-15-L Regular Interest,
until the Class II-A-15-L Principal Balance has been reduced
to zero;
(i) ninth, to the Class II-A-14-L Regular Interest
(without regard to its Targeted Principal Balance), until the
Class II-A-14-L Principal Balance has been reduced to zero;
(j) tenth, to the Class II-A-16-L Regular Interest,
until the Class II-A-16-L Principal Balance has been reduced
to zero;
61
(k) eleventh, to the Class II-A-1-L Regular Interest
(without regard to its Planned Principal Balance), until the
Class II-A-1-L Principal Balance has been reduced to zero;
(l) twelfth, to the Class II-A-2-L Regular Interest
(without regard to its Planned Principal Balance), until the
Class II-A-2-L Principal Balance has been reduced to zero;
(m) thirteenth, to the Class II-A-11-L Regular
Interest, until the Class II-A-11-L Principal Balance has been
reduced to zero;
(n) fourteenth, to the Class II-A-17-L Regular
Interest, until the Class II-A-17-L Principal Balance has been
reduced to zero;
(o) fifteenth, an amount equal to 18% of the Group II
Senior Principal Distribution Amount remaining after steps (a)
through (n), to the Class II-A-29-L and Class II-A-30-L
Regular Interests, pro rata, until the Class II-A-29-L and
Class II-A-30-L Principal Balances have each been reduced to
zero;
(p) sixteenth, to the Class II-A-21-L Regular
Interest, until the Class II-A-21-L Principal Balance has been
reduced to zero;
(q) seventeenth, to the Class II-A-20-L Regular
Interest, until the Class II-A-20-L Principal Balance has been
reduced to zero;
(r) eighteenth, to the Class II-A-29-L and Class
II-A-30-L Regular Interests, pro rata, until the Class
II-A-29-L and Class II-A-30-L Principal Balances have each
been reduced to zero;
(s) nineteenth, to the Class II-A-18-L Regular
Interest, until the Class II-A-18-L Principal Balance has been
reduced to zero;
(t) twentieth, to the Class II-A-19-L Regular
Interest, until the Class II-A-19-L Principal Balance has been
reduced to zero;
(u) twenty-first, to the Class II-A-22-L Regular
Interest, until the Class II-A-22-L Principal Balance has been
reduced to zero; and
(v) twenty-second, to the Class II-A-24-L, Class
II-A-25-L, Class II-A-26-L, Class II-A-27-L and Class
II-A-28-L Regular Interests, pro rata, until the Class
II-A-24-L, Class II-A-25-L, Class II-A-26-L, Class II-A-27-L
and Class II-A-28-L Principal Balances have each been reduced
to zero;
(v) fifth, to the Class II-P-L Regular Interest, to the extent
of amounts otherwise available to pay the Group II Subordinate
Principal Distribution Amount (without regard to clause (B) of the
definition thereof) on such Distribution Date, the amount payable to
such Class of Regular Interests on previous Distribution Dates
62
pursuant to clause (I)(b)(vi) of this definition of "REMIC I
Distribution Amount" and remaining unpaid from such previous
Distribution Dates;
(vi) sixth, to the Class II-P-L Regular Interest, to the
extent of amounts otherwise available to pay the Group II Subordinate
Principal Distribution Amount (without regard to clause (B) of the
definition thereof) on such Distribution Date, principal in an amount
equal to the Class II-P Fraction of any Realized Loss on a Class II-P
Mortgage Loan incurred in the Prior Period (other than a Realized Loss
which, pursuant to the definition of "Realized Loss," is allocated by
Pro Rata Allocation); provided, that any amounts distributed in respect
of losses pursuant to paragraph (I)(b)(v) or this paragraph (I)(b)(vi)
of this definition of "REMIC I Distribution Amount" shall not cause a
further reduction in the Class II-P-L Principal Balance;
(vii) seventh, to the Class II-B-1-L Regular Interest, the
Interest Distribution Amount for such Class of Regular Interests
remaining unpaid from previous Distribution Dates;
(viii) eighth, to the Class II-B-1-L Regular Interest, the
Interest Distribution Amount for such Class of Regular Interests for
the current Distribution Date;
(ix) ninth, to the Class II-B-1-L Regular Interest, the
portion of the Group II Subordinate Principal Distribution Amount
allocable to such Class of Regular Interests pursuant to the definition
of "Group II Subordinate Principal Distribution Amount," until the
Class II-B-1-L Principal Balance has been reduced to zero;
(x) tenth, to the Class II-B-2-L Regular Interest, the
Interest Distribution Amount for such Class of Regular Interests
remaining unpaid from previous Distribution Dates;
(xi) eleventh, to the Class II-B-2-L Regular Interest, the
Interest Distribution Amount for such Class of Regular Interests for
the current Distribution Date;
(xii) twelfth, to the Class II-B-2-L Regular Interest, the
portion of the Group II Subordinate Principal Distribution Amount
allocable to such Class of Regular Interests pursuant to the definition
of "Group II Subordinate Principal Distribution Amount," until the
Class II-B-2-L Principal Balance has been reduced to zero;
(xiii) thirteenth, to the Class II-B-3-L Regular Interest, the
Interest Distribution Amount for such Class of Regular Interests
remaining unpaid from previous Distribution Dates;
(xiv) fourteenth, to the Class II-B-3-L Regular Interest, the
Interest Distribution Amount for such Class of Regular Interests for
the current Distribution Date;
(xv) fifteenth, to the Class II-B-3-L Regular Interest, the
portion of the Group II Subordinate Principal Distribution Amount
allocable to such Class of Regular Interests pursuant to the definition
of "Group II Subordinate Principal Distribution Amount," until the
Class II-B-3-L Principal Balance has been reduced to zero;
63
(xvi) sixteenth, to the Class II-B-4-L Regular Interest, the
Interest Distribution Amount for such Class of Regular Interests
remaining unpaid from previous Distribution Dates;
(xvii) seventeenth, to the Class II-B-4-L Regular Interest,
the Interest Distribution Amount for such Class of Regular Interests
for the current Distribution Date;
(xviii) eighteenth, to the Class II-B-4-L Regular Interest,
the portion of the Group II Subordinate Principal Distribution Amount
allocable to such Class of Regular Interests pursuant to the definition
of "Group II Subordinate Principal Distribution Amount," until the
Class II-B-4-L Principal Balance has been reduced to zero;
(xix) nineteenth, to the Class II-B-5-L Regular Interest, the
Interest Distribution Amount for such Class of Regular Interests
remaining unpaid from previous Distribution Dates;
(xx) twentieth, to the Class II-B-5-L Regular Interest, the
Interest Distribution Amount for such Class of Regular Interests for
the current Distribution Date;
(xxi) twenty-first, to the Class II-B-5-L Regular Interest,
the portion of the Group II Subordinate Principal Distribution Amount
allocable to such Class of Regular Interests pursuant to the definition
of "Group II Subordinate Principal Distribution Amount," until the
Class II-B-5-L Principal Balance has been reduced to zero;
(xxii) twenty-second, to the Class II-B-6-L Regular Interest,
the Interest Distribution Amount for such Class of Regular Interests
remaining unpaid from previous Distribution Dates;
(xxiii) twenty-third, to the Class II-B-6-L Regular Interest,
the Interest Distribution Amount for such Class of Regular Interests
for the current Distribution Date;
(xxiv) twenty-fourth, to the Class II-B-6-L Regular Interest,
the portion of the Group II Subordinate Principal Distribution Amount
allocable to such Class of Regular Interests pursuant to the definition
of "Group II Subordinate Principal Distribution Amount," until the
Class II-B-6-L Principal Balance has been reduced to zero;
(xxv) twenty-fifth, to the Certificate Insurer, the
Certificate Insurer Reimbursement Amount;
(xxvi) twenty-sixth, to each Class of Group II-L Regular
Interests in the order of seniority (which, from highest to lowest,
shall be as follows: the Group II-A-L and Class II-P-L Regular
Interests of equal seniority, and then Class II-B-1-L, Class II-B-2-L,
Class II-B-3-L, Class II-B-4-L, Class II-B-5-L and Class II-B-6-L of
decreasing seniority) and, in the case of Classes of Regular Interests
of equal seniority, allocated among such Classes according to the
amount of losses previously allocated thereto, the remaining portion,
if any, of the REMIC I Available Distribution Amount for Loan Group II,
up to the amount of unreimbursed Realized Losses allocable to principal
previously allocated to such Class, if any; provided, however, that any
amounts distributed pursuant to this
64
paragraph (I)(b)(xxvi) of this definition of "REMIC I Distribution
Amount" shall not cause a further reduction in the Class Principal
Balances of any of the Group II-L Regular Interests; and
(xxvii) twenty-sixth, to the Class R-1 Certificates, the
Residual Distribution Amount for Loan Group II for such Distribution
Date.
(II) For any Distribution Date on or after the Group I or Group II
Credit Support Depletion Date, as applicable, the REMIC I Available Distribution
Amount for such Distribution Date shall be distributed to the outstanding
Classes of REMIC I Regular Interests, the Class R-1 Certificates and the
Certificate Insurer in the following amounts and priority:
(a) With respect to the Group I-L Regular Interests and the Class R-1
Certificates, on each Distribution Date on or after the Group I Credit Support
Depletion Date, to the extent of the REMIC I Available Distribution Amount for
Loan Group I for such Distribution Date:
(i) first, to the Class I-P-L Regular Interest, principal in
the amount that would otherwise be distributed to such Class on such
Distribution Date pursuant to clause (I)(a)(i) of this definition of
"REMIC I Distribution Amount";
(ii) second, to the Class I-A-1-L and Class I-X-L Regular
Interests, the amount payable to each such Class of Regular Interests
on prior Distribution Dates pursuant to clause (I)(a)(iii) or
(II)(a)(iii) of this definition of "REMIC I Distribution Amount," and
remaining unpaid, pro rata according to such amount payable to the
extent of amounts available;
(iii) third, to the Class I-A-1-L and Class I-X-L Regular
Interests, concurrently, the sum of the Interest Distribution Amounts
for such Classes of Regular Interests for the current Distribution
Date, pro rata according to their respective Interest Distribution
Amounts;
(iv) fourth, to the Class I-A-1-L Regular Interest, as
principal, the Group I Senior Principal Distribution Amount; and
(v) fifth, to the Class R-1 Certificates, the Residual
Distribution Amount for Loan Group I for such Distribution Date.
(b) With respect to the Group II-L Regular Interests the Class R-1
Certificates and the Certificate Insurer, on each Distribution Date on or after
the Group II Credit Support Depletion Date, to the extent of the REMIC I
Available Distribution Amount for Loan Group II for such Distribution Date:
(i) first, to the Class II-P-L Regular Interest, principal in
the amount that would otherwise be distributed to such Class on such
Distribution Date pursuant to clause (I)(b)(i) of this definition of
"REMIC I Distribution Amount";
(ii) second, to the Group II-A-L and Class II-X-L Regular
Interests, the amount payable to each such Class of Regular Interests
on prior Distribution Dates
65
pursuant to clause (I)(b)(iii) or (II)(b)(iii) of this definition of
"REMIC I Distribution Amount," and remaining unpaid, pro rata according
to such amount payable to the extent of amounts available;
(iii) third, to the Group II-A-L and Class II-X-L Regular
Interests, concurrently, the sum of the Interest Distribution Amounts
for such Classes of Regular Interests for the current Distribution
Date, pro rata according to their respective Interest Distribution
Amounts;
(iv) fourth, to the Group II-A-L Regular Interests, pro rata
according to Class Principal Balance, as principal, the Group II Senior
Principal Distribution Amount;
(v) fifth, to the Certificate Insurer, the Certificate Insurer
Reimbursement Amount; and
(vi) sixth, to the Class R-1 Certificates, the Residual
Distribution Amount for the Loan Group II for such Distribution Date.
REMIC I Regular Interests: The Classes of interests in the REMIC I
Trust Fund designated as "regular interests" in the table titled "REMIC I
Interests" in the Preliminary Statement hereto.
REMIC I Trust Fund: All of the assets in the Trust Fund other than the
Certificate Insurance Policy and the Class II-A-24 Reserve Fund.
REMIC II: The segregated pool of assets consisting of the REMIC II
Trust Fund conveyed in trust to the Trustee for the benefit of the Holders of
the REMIC II Regular Interests and the Class R-2 Certificateholders pursuant to
Section 2.05, with respect to which a separate REMIC election is to be made.
REMIC II Available Distribution Amount: For the Group I Certificates,
on any Distribution Date, the aggregate of all distributions to the Group I-L
Regular Interests (which amount shall be available for distributions to the
Group I and Class R-2 Certificates as provided herein). For the Group II
Certificates, on any Distribution Date, the aggregate of all distributions to
the Group II-L Regular Interests (other than any Rounding Amount, Class II-A-24
Covered Interest Shortfall Amount or Deficiency Amount deemed to have been
distributed pursuant to Section 4.01(ii)) (which amount shall be available for
distributions to the Group II and Class R-2 Certificates as provided herein).
REMIC II Distribution Amount: The REMIC II Available Distribution
Amount for any Distribution Date shall be distributed to the Certificates (other
than the Class R-1 Certificates) in the following amounts and priority:
(a) With respect to the Group I Certificates, to the extent of the
REMIC II Available Distribution Amount for the Group I Certificates for such
Distribution Date:
(i) to each Class of Group I Certificates, the amounts
distributed to its Corresponding Class on such Distribution Date; and
66
(iii) to the Class R-2 Certificates, the Residual Distribution
Amount for the Group I Certificates; and
(b) With respect to the Group II and Class R-2 Certificates, to the
extent of the REMIC II Available Distribution Amount for the Group II
Certificates for such Distribution Date:
(i) to each Class of Group II Certificates (other than the
Class II-A-1, Class II-A-2, Class II-A-9, Class II-A-12, Class II-A-18
and Class II-A-23 Certificates) and the Class R-2 Certificates, the
amounts (other than any Rounding Amount, Class II-A-24 Covered Interest
Shortfall Amount or Deficiency Amount) distributed to its Corresponding
Class on such Distribution Date;
(ii) (A) to each Class of the Class II-A-1, Class II-A-2,
Class II-A-12 and Class II-A-18 Certificates, the amount distributed as
principal to its respective Corresponding Class on such Distribution
Date, (B) to each Class of the Class II-A-1, Class II-A-2, Class II-A-9
and Class II-A-12 Certificates, the aggregate amount distributed as
interest to the Class II-A-1-L, Class II-A-2-L and Class II-A-12-L
Regular Interests on such Distribution Date, pro rata according to, for
each such Class, the product of 1/12 of the Certificate Interest Rate
for such Class and the Class Principal Balance or Class Notional
Amount, as applicable, for such Class before allocating principal
losses and giving effect to distributions of principal on such
Distribution Date, and (C) to each Class of the Class II-A-18 and Class
II-A-23 Certificates, the aggregate amount distributed as interest to
the Class II-A-18-L Regular Interest on such Distribution Date, pro
rata according to, for each such Class, the product of 1/12 of the
Certificate Interest Rate for such Class and the Class Principal
Balance or Class Notional Amount, as applicable, for such Class before
allocating principal losses and giving effect to distributions of
principal on such Distribution Date; and
(iii) to the Class R-2 Certificates, the Residual Distribution
Amount for the Group II Certificates.
In each case where a distribution is required to be made concurrently
to two or more Classes of Certificates or Regular Interests pursuant to this
definition of "REMIC II Distribution Amount," if the portion of the REMIC II
Available Distribution Amount from which such distribution is required to be
made is insufficient to make such distribution in full to such Classes, such
distribution shall be allocated between such Classes pro rata according to the
respective amounts to which they are otherwise entitled from such distribution.
REMIC II Regular Interests: The Classes of interests in the REMIC II
Trust Fund designated as "regular interests" in the table titled "REMIC II
Interests" in the Preliminary Statement hereto.
REMIC II Trust Fund: The REMIC II Trust Fund created pursuant to
Section 2.05 of this Agreement. The REMIC II Trust Fund consists of the REMIC I
Regular Interests to be held by the Trustee for the benefit of the Holders from
time to time of the REMIC II Regular Interests and the Class R-2 Certificates
issued hereunder.
67
Residual Certificates: With respect to REMIC I, the Class R-1
Certificates, which are being issued in a single class, and with respect to
REMIC II, the Class R-2 Certificates, which are being issued in a single class.
The Class R-1 and Class R-2 Certificates are hereby designated the sole Class of
"residual interests" in REMIC I and REMIC II, respectively, for purposes of
Section 860G(a)(2) of the Code.
Residual Distribution Amount: For any Distribution Date, with respect
to the Class R-1 Certificates and for Loan Group I and Loan Group II, any
portion of the REMIC I Available Distribution Amount for Loan Group I and Loan
Group II, respectively, remaining after all distributions of such REMIC I
Available Distribution Amount pursuant to clause (I)(a), (I)(b), (II)(a) and
(II)(b), as applicable, of the definition of "REMIC I Distribution Amount"
(other than the distribution pursuant to the last subclause of each such
clause).
For any Distribution Date, with respect to the Class R-2 Certificates
and the Group I and Group II Certificates, any portion of the REMIC II Available
Distribution Amount for the Group I and Group II Certificates, respectively,
remaining after all distributions of such REMIC II Available Distribution Amount
pursuant to clause (a) and (b), as applicable, of the definition of "REMIC II
Distribution Amount" (other than the distribution pursuant to the last subclause
of each such clause).
Upon termination of the obligations created by this Agreement and the
REMIC I Trust Fund and the REMIC II Trust Fund created hereby, the amounts which
remain on deposit in the Certificate Account after payment to the Holders of the
REMIC I Regular Interests of the amounts set forth in Section 9.01 of this
Agreement, and subject to the conditions set forth therein, shall be distributed
to the Class R-1 and Class R-2 Certificates in accordance with the preceding
sentence of this definition as if the date of such distribution were a
Distribution Date.
Responsible Officer: When used with respect to the Trustee, any officer
assigned to and working in its Corporate Trust Department or similar group and
also, with respect to a particular matter, any other officer to whom such matter
is referred because of such officer's knowledge of and familiarity with the
particular subject.
Rounding Accounts: The Class II-A-3, Class II-A-5 and Class II-A-7
Rounding Accounts.
Rounding Amount: With respect to each Class of Special Retail
Certificates, the amount of funds, if any, needed to be withdrawn from the
related Rounding Account and used to round the amount of any distributions in
reduction of the related Class Principal Balance on any Distribution Date upward
to the next higher integral multiple of $1,000.
Securities Act: The Securities Act of 1933, as amended.
Security Agreement: With respect to a Cooperative Loan, the agreement
or mortgage creating a security interest in favor of the originator of the
Cooperative Loan in the related Cooperative Stock.
Selling and Servicing Contract: (a) The contract (including the
Washington Mutual Mortgage Securities Corp. Selling Guide and Washington Mutual
Mortgage Securities Corp. Servicing Guide to the extent incorporated by
reference therein) between the Company and a
68
Person relating to the sale of the Mortgage Loans to the Company and the
servicing of such Mortgage Loans for the benefit of the Certificateholders,
which contract is substantially in the form of Exhibit E hereto, as such
contract may be amended or modified from time to time; provided, however, that
any such amendment or modification shall not materially adversely affect the
interests and rights of Certificateholders or the Certificate Insurer and (b)
any other similar contract, including any mortgage loan purchase and sale
agreement or any assignment, assumption and recognition agreement related to a
mortgage loan purchase and sale agreement, providing substantially similar
rights and benefits as those provided by the forms of contract attached as
Exhibit E hereto.
Senior Certificates: The Class A, Class P, Class X and Residual
Certificates.
Senior Regular Interests: The Class A-L, Class P-L and Class X-L
Regular Interests.
Senior Subordinate Certificates: The Subordinate Certificates other
than the Junior Subordinate Certificates.
Servicer: A mortgage loan servicing institution to which the Master
Servicer has assigned servicing duties with respect to any Mortgage Loan under a
Selling and Servicing Contract; provided, however, the Master Servicer may
designate itself or one or more other mortgage loan servicing institutions as
Servicer upon termination of an initial Servicer's servicing duties.
Servicing Fee: For each Mortgage Loan, the fee paid to the Servicer
thereof to perform primary servicing functions for the Master Servicer with
respect to such Mortgage Loan, equal to the per annum rate set forth for each
Mortgage Loan in the Mortgage Loan Schedule on the outstanding Principal Balance
of such Mortgage Loan. In addition, any prepayment penalty received on a
Mortgage Loan will be paid as additional servicing compensation to the Master
Servicer or the related Servicer.
Servicing Officer: Any officer of the Master Servicer involved in, or
responsible for, the administration and servicing of the Mortgage Loans or the
Certificates, as applicable, whose name and specimen signature appear on a list
of servicing officers furnished to the Trustee by the Master Servicer, as such
list may from time to time be amended.
Special Hazard Coverage: With respect to Loan Group I, the Special
Hazard Coverage for Loan Group I on the most recent anniversary of the Cut-Off
Date (calculated in accordance with the second sentence of this paragraph) or,
if prior to the first such anniversary, $3,200,681, in each case reduced by
Special Hazard Losses allocated to the Group I-L Regular Interests since the
most recent anniversary of the Cut-Off Date (or, if prior to the first such
anniversary, since the Cut-Off Date). On each anniversary of the Cut-Off Date,
the Special Hazard Coverage for Loan Group I shall be reduced, but not
increased, to an amount equal to the lesser of (1) the greatest of (a) the
aggregate principal balance of the Group I Loans located in the single
California zip code area containing the largest aggregate principal balance of
Group I Loans, (b) 1% of the aggregate unpaid principal balance of the Group I
Loans and (c) twice the unpaid principal balance of the largest single Group I
Loan, in each case calculated as of the Due Date in the immediately preceding
month, and (2) $3,200,681 as reduced by the Special Hazard Losses allocated to
the Group I-L Regular Interests since the Cut-Off Date.
69
With respect to Loan Group II, the Special Hazard Coverage for Loan
Group II on the most recent anniversary of the Cut-Off Date (calculated in
accordance with the second sentence of this paragraph) or, if prior to the first
such anniversary, $9,444,049, in each case reduced by Special Hazard Losses
allocated to the Group II-L Regular Interests since the most recent anniversary
of the Cut-Off Date (or, if prior to the first such anniversary, since the
Cut-Off Date). On each anniversary of the Cut-Off Date, the Special Hazard
Coverage for Loan Group II shall be reduced, but not increased, to an amount
equal to the lesser of (1) the greatest of (a) the aggregate principal balance
of the Group II Loans located in the single California zip code area containing
the largest aggregate principal balance of Group II Loans, (b) 1% of the
aggregate unpaid principal balance of the Group II Loans and (c) twice the
unpaid principal balance of the largest single Group II Loan, in each case
calculated as of the Due Date in the immediately preceding month, and (2)
$9,444,049 as reduced by the Special Hazard Losses allocated to the Group II-L
Regular Interests since the Cut-Off Date.
The Special Hazard Coverage for Loan Group I and the Special Hazard
Coverage for Loan Group II may be reduced upon written confirmation from the
Rating Agencies that such reduction will not adversely affect the then current
ratings assigned to the Certificates by the Rating Agencies (determined in the
case of the Insured Certificates, without giving effect to the Certificate
Insurance Policy).
Special Hazard Loss: A Realized Loss (or portion thereof) with respect
to a Mortgage Loan arising from any direct physical loss or damage to a
Mortgaged Property not covered by a standard hazard maintenance policy with
extended coverage which is caused by or results from any cause except: (i) fire,
lightning, windstorm, hail, explosion, riot, riot attending a strike, civil
commotion, vandalism, aircraft, vehicles, smoke, sprinkler leakage, except to
the extent of that portion of the loss which was uninsured because of the
application of a co-insurance clause of any insurance policy covering these
perils; (ii) normal wear and tear, gradual deterioration, inherent vice or
inadequate maintenance of all or part thereof; (iii) errors in design, faulty
workmanship or materials, unless the collapse of the property or a part thereof
ensues and then only for the ensuing loss; (iv) nuclear reaction or nuclear
radiation or radioactive contamination, all whether controlled or uncontrolled
and whether such loss be direct or indirect, proximate or remote or be in whole
or in part caused by, contributed to or aggravated by a peril covered by this
definition of Special Hazard Loss; (v) hostile or warlike action in time of
peace or war, including action in hindering, combating or defending against an
actual, impending or expected attack (a) by any government of sovereign power
(de jure or de facto), or by an authority maintaining or using military, naval
or air forces, (b) by military, naval or air forces, or (c) by an agent of any
such government, power, authority or forces; (vi) any weapon of war employing
atomic fission or radioactive force whether in time of peace or war; (vii)
insurrection, rebellion, revolution, civil war, usurped power or action taken by
governmental authority in hindering, combating or defending against such
occurrence; or (viii) seizure or destruction under quarantine or customs
regulations, or confiscation by order of any government or public authority.
Special Primary Insurance Policy: Any Primary Insurance Policy covering
a Mortgage Loan the premium of which is payable by the Trustee pursuant to
Section 4.04(a), if so identified in the Mortgage Loan Schedule. There are no
Special Primary Insurance Policies with respect to any of the Mortgage Loans.
70
Special Primary Insurance Premium: With respect to any Special Primary
Insurance Policy, the monthly premium payable thereunder.
Special Retail Certificates: The Class II-A-3, Class II-A-5 and Class
II-A-7 Certificates.
Step Down Percentage: For any Distribution Date, the percentage
indicated below:
Distribution Date Occurring In Step Down Percentage
------------------------------ --------------------
August 2001 through July 2006 0%
August 2006 through July 2007 30%
August 2007 through July 2008 40%
August 2008 through July 2009 60%
August 2009 through July 2010 80%
August 2010 and thereafter 100%
Stripped Interest Rate: For each Group I Loan, the excess, if any, of
the Pass-Through Rate for such Mortgage Loan over 6.500% per annum. For each
Group II Loan, the excess, if any, of the Pass-Through Rate for such Mortgage
Loan over 6.750% per annum.
Subordinate Certificates: The Group I-B and Group II-B Certificates.
Subordination Level: On any specified date, with respect to any Class
of Group I-B-L Regular Interests, the percentage obtained by dividing the
aggregate Class Principal Balance of the Classes of Group I-B-L Regular
Interests which are subordinate in right of payment to such Class by the
aggregate Class Principal Balance of the Group I-L Regular Interests as of such
date prior to giving effect to distributions of principal and interest and
allocations of Realized Losses on the Group I Loans on such date. On any
specified date, with respect to any Class of Group II-X-X Regular Interests, the
percentage obtained by dividing the aggregate Class Principal Balance of the
Classes of Group II-X-X Regular Interests which are subordinate in right of
payment to such Class by the aggregate Class Principal Balance of the Group II-L
Regular Interests and the Class R-1 and Class R-2 Certificates as of such date
prior to giving effect to distributions of principal and interest and
allocations of Realized Losses on the Group II Loans on such date.
Substitute Mortgage Loan: A Mortgage Loan which is substituted for
another Mortgage Loan pursuant to and in accordance with the provisions of
Section 2.02.
Surety: Ambac Assurance Corporation, or its successors in interest.
Surety Bonds: The Limited Purpose Surety Bonds, Policy No. AB0039BE and
Policy No. AB0240BE, issued by Ambac Assurance Corporation for the benefit of
certain beneficiaries, including, with respect to the Additional Collateral
Loans, the Trustee for the benefit of the Certificateholders.
Targeted Principal Balance: With respect to the Class II-A-3, Class
II-A-4, Class II-A-5, Class II-A-6, Class II-A-7 and Class II-A-8 Certificates,
the combined amount set forth in the table attached as Appendix C to the
Prospectus, for the applicable Distribution Date, under the heading "Class
II-A-3, Class II-A-4, Class II-A-5, Class II-A-6, Class II-A-7 and Class II-A-8
71
Aggregate Targeted Principal Balance," which amount shall also constitute the
"Targeted Principal Balance" for their Corresponding Classes in the aggregate.
With respect to the Class II-A-14 Certificates, the amount set forth in the
table attached as Appendix C to the Prospectus, for the applicable Distribution
Date, under the heading "Class II-A-14 Targeted Principal Balance," which amount
shall also constitute the "Targeted Principal Balance" for its Corresponding
Class.
Tax Matters Person: A Holder of a Class R-1 Certificate, with respect
to REMIC I and a Holder of a Class R-2 Certificate, with respect to REMIC II, in
each case with a Percentage Interest of at least 0.01% or any Permitted
Transferee of such Class R-1 or Class R-2 Certificateholder designated as
succeeding to the position of Tax Matters Person with respect to the applicable
trust fund in a notice to the Trustee signed by authorized representatives of
the transferor and transferee of such Class R-1 or Class R-2 Certificate. The
Company is hereby appointed to act as the Tax Matters Person for REMIC I so long
as it holds a Class R-1 Certificate and to act as the Tax Matters Person for
REMIC II so long as it holds a Class R-2 Certificate, in each case with a
Percentage Interest of at least 0.01%. The Company is hereby appointed to act as
agent for the Tax Matters Person for either of REMIC I or REMIC II, to perform
the functions of such Tax Matters Person as provided herein, so long as the
Company is the Master Servicer hereunder, in the event that the Company ceases
to hold a Class R-1 or Class R-2 Certificate, as applicable, with the required
Percentage Interest. In the event that the Company ceases to be the Master
Servicer hereunder, the successor Master Servicer is hereby appointed to act as
agent for the Tax Matters Person for REMIC I and REMIC II, to perform the
functions of such Tax Matters Person as provided herein. If the Tax Matters
Person for REMIC I or REMIC II becomes a Disqualified Organization, the last
preceding Holder, that is not a Disqualified Organization, of the Class R-1 or
Class R-2 Certificate, as applicable, held by the Disqualified Organization
shall be Tax Matters Person for such trust pursuant to and as permitted by
Section 5.01(c). If any Person is appointed as tax matters person by the
Internal Revenue Service pursuant to the Code, such Person shall be Tax Matters
Person.
Termination Date: The date upon which final payment of the Certificates
will be made pursuant to the procedures set forth in Section 9.01(b).
Termination Payment: The final payment delivered to the
Certificateholders on the Termination Date pursuant to the procedures set forth
in Section 9.01(b).
Transfer: Any direct or indirect transfer or sale of any Ownership
Interest in a Residual Certificate.
Transferee: Any Person who is acquiring by Transfer any Ownership
Interest in a Residual Certificate.
Transferee Affidavit and Agreement: An affidavit and agreement in the
form attached hereto as Exhibit J.
Trust: The pool of assets consisting of the Trust Fund conveyed
pursuant to Section 2.01 of this Agreement.
72
Trust Fund: The corpus of the trust created pursuant to Section 2.01 of
this Agreement. The Trust Fund consists of (i) the Mortgage Loans and all rights
pertaining thereto; (ii) such assets as from time to time may be held by the
Trustee (or its duly appointed agent) in the Certificate Account, the Investment
Account (except amounts representing the Master Servicing Fee or the Servicing
Fee), the Rounding Accounts or the Class II-A-24 Reserve Fund; (iii) such assets
as from time to time may be held by Servicers in a Custodial Account for P&I or
Custodial Account for Reserves or a Buydown Fund Account related to the Mortgage
Loans (except amounts representing the Master Servicing Fee or the Servicing
Fee); (iv) property which secured a Mortgage Loan and which has been acquired by
foreclosure or deed in lieu of foreclosure or, in the case of a Cooperative
Loan, a similar form of conversion, after the Cut-Off Date; and (v) the
Certificate Insurance Policy and amounts paid or payable by the insurer under
the Surety Bonds (with respect to the Additional Collateral Loans), any FHA
insurance policy or any Primary Insurance Policy and proceeds of any VA guaranty
and any other insurance policy related to any Mortgage Loan or the Mortgage
Pool.
Trustee: State Street Bank and Trust Company, or its
successor-in-interest as provided in Section 8.09, or any successor trustee
appointed as herein provided.
Uncollected Interest: With respect to any Distribution Date for any
Mortgage Loan on which a Payoff was made by a Mortgagor during the related
Payoff Period, except for Payoffs received during the period from the first
through the 14th day of the month of such Distribution Date, an amount equal to
one month's interest at the applicable Pass-Through Rate on such Mortgage Loan
less the amount of interest actually paid by the Mortgagor with respect to such
Payoff.
Uncompensated Interest Shortfall: With respect to a Loan Group, for any
Distribution Date, the sum of (i) aggregate Curtailment Shortfall with respect
to the Mortgage Loans in such Loan Group and (ii) the excess, if any, of (a)
aggregate Uncollected Interest with respect to the Mortgage Loans in such Loan
Group over (b) Compensating Interest with respect to such Loan Group.
Uncompensated Interest Shortfall for Loan Group I shall be allocated to
the Group I-L Regular Interests, pro rata according to the amount of the
Interest Distribution Amount to which each such Class would otherwise be
entitled in reduction thereof.
Uncompensated Interest Shortfall for Loan Group II shall be allocated
to the Group II-L Regular Interests, pro rata according to the amount of the
Interest Distribution Amount to which each such Class would otherwise be
entitled in reduction thereof.
Underwriter: Xxxxxx Brothers Inc.
Underwriting Standards: The underwriting standards of the Company,
Washington Mutual Bank, FA, Washington Mutual Bank, fsb, Washington Mutual Bank,
a Washington state chartered savings bank, and Washington Mutual Home Loans,
Inc.
Uninsured Cause: Any cause of damage to a Mortgaged Property, the cost
of the complete restoration of which is not fully reimbursable under the hazard
insurance policies required to be maintained pursuant to Section 3.07.
73
U.S. Person: A citizen or resident of the United States, a corporation,
partnership or other entity created or organized in or under the laws of the
United States, any state thereof or the District of Columbia, or an estate or
trust that is subject to U.S. federal income tax regardless of the source of its
income.
VA: The Department of Veterans Affairs, formerly known as the Veterans
Administration, or any successor thereto.
Washington Mutual Bank Loan: Any Mortgage Loan acquired by the Company
from Washington Mutual Bank, FA, Washington Mutual Bank, fsb or Washington
Mutual Bank, a Washington state chartered savings bank.
Withdrawal Date: Any day during the period commencing on the 18th day
of the month of the related Distribution Date (or if such day is not a Business
Day, the immediately preceding Business Day) and ending on the last Business Day
prior to the 21st day of the month of such Distribution Date. The "related Due
Date" for any Withdrawal Date is the Due Date immediately preceding the related
Distribution Date.
ARTICLE II
Conveyance of the Trust Funds; REMIC Election and Designations;
Original Issuance of Certificates
Section 2.01. Conveyance of the Trust Fund; REMIC Election and
Designations. The Trust of which the Trustee is the trustee is hereby created
under the laws of the State of New York for the benefit of the Holders of the
REMIC I Regular Interests and the Class R-1 Certificates. The purpose of the
Trust is to hold the Trust Fund and provide for the creation of the REMIC I
Regular Interests and for the issuance, execution and delivery of the Class R-1
Certificates. The assets of the Trust shall consist of the Trust Fund. The Trust
shall be irrevocable. The Trust shall be deemed to consist of two sub-trusts,
one with respect to each of the Group I and Group II Loans.
The assets of the Trust shall remain in the custody of the Trustee, on
behalf of the Trust, and shall be kept in the Trust except as otherwise
expressly set forth herein. Moneys to the credit of the Trust shall be held by
the Trustee and invested as provided herein. All assets received and held in the
Trust will not be subject to any right, charge, security interest, lien or claim
of any kind in favor of State Street Bank and Trust Company in its own right, or
any Person claiming through it. The Trustee, on behalf of the Trust, shall not
have the power or authority to transfer, assign, hypothecate, pledge or
otherwise dispose of any of the assets of the Trust to any Person, except as
permitted herein. No creditor of a beneficiary of the Trust, of the Trustee, of
the Master Servicer or of the Company shall have any right to obtain possession
of, or otherwise exercise legal or equitable remedies with respect to, the
property of the Trust, except in accordance with the terms of this Agreement.
Concurrently with the execution and delivery hereof, the Company does
hereby irrevocably sell, transfer, assign, set over and otherwise convey to the
Trustee, in trust for the benefit of the Holders of the REMIC I Regular
Interests and the Class R-1 Certificates, without
74
recourse, all the Company's right, title and interest in and to the Trust Fund,
including but not limited to all scheduled payments of principal and interest
due after the Cut-Off Date and received by the Company with respect to the
Mortgage Loans at any time, and all Principal Prepayments received by the
Company after the Cut-Off Date with respect to the Mortgage Loans (such transfer
and assignment by the Company to be referred to herein as the "Conveyance," and
the assets so transferred and assigned to be referred to herein as the "Conveyed
Assets").
It is the express intent of the parties hereto that the Conveyance of
the Conveyed Assets to the Trustee by the Company as provided in this Section
2.01 be, and be construed as, an absolute sale of the Conveyed Assets. It is,
further, not the intention of the parties that such Conveyance be deemed the
grant of a security interest in the Conveyed Assets by the Company to the
Trustee to secure a debt or other obligation of the Company. However, in the
event that, notwithstanding the intent of the parties, the Conveyed Assets are
held to be the property of the Company, or if for any other reason this
Agreement is held or deemed to create a security interest in the Conveyed
Assets, then
(a) this Agreement shall be deemed to be a security agreement;
(b) the Conveyance provided for in this Section 2.01 shall be deemed to
be a grant by the Company to the Trustee of, and the Company hereby grants to
the Trustee, to secure all of the Company's obligations hereunder, a security
interest in all of the Company's right, title, and interest, whether now owned
or hereafter acquired, in and to:
(I) (i) the Mortgage Loans identified on the Mortgage Loan
Schedule, including the related Mortgage Notes, Mortgages, Cooperative
Stock Certificates, and Cooperative Leases, the security agreements and
guaranties constituting part of the related Additional Collateral, all
Substitute Mortgage Loans and all distributions with respect to the
Mortgage Loans and Substitute Mortgage Loans payable on and after the
Cut-Off Date; (ii) the Certificate Account, the Investment Account, the
Rounding Accounts, the Class II-A-24 Reserve Fund and all money or
other property held therein, and the Custodial Accounts for P&I, and
the Custodial Accounts for Reserves and any Buydown Fund Account (to
the extent of the amounts on deposit or other property therein
attributable to the Mortgage Loans); and (iii) the Certificate
Insurance Policy and amounts paid or payable by the insurer under the
Surety Bonds (with respect to the Additional Collateral Loans), any FHA
insurance policy or any Primary Insurance Policy and proceeds of any VA
guaranty and any other insurance policy related to any Mortgage Loan or
the Mortgage Pool;
(II) All rights arising from or by virtue of the disposition
of, or collections with respect to, or insurance proceeds payable with
respect to, or claims against other persons with respect to, all or any
part of the collateral described in (I) above (including any accrued
discount realized on liquidation of any investment purchased at a
discount);
(III) All accounts, general intangibles, chattel paper,
instruments, documents, money, deposit accounts, goods, letters of
credit, letter-of-credit rights, oil, gas, and other
75
minerals, and investment property consisting of, arising from or
relating to any of the foregoing; and
(IV) All proceeds of the foregoing;
(c) the possession by the Trustee of any of the foregoing property
shall be deemed to be possession by the secured party or possession by a
purchaser for purposes of perfecting the security interest pursuant to the
Uniform Commercial Code (including, without limitation, Sections 9-313 and 9-314
thereof) as in force in the relevant jurisdiction; and
(d) notifications to persons holding such property, and
acknowledgments, receipts or confirmations from persons holding such property,
shall be deemed to be notifications to, or acknowledgments, receipts or
confirmations from, securities intermediaries, bailees or agents of, or persons
holding for, the Trustee, as applicable, for the purpose of perfecting such
security interest under applicable law.
The Company and the Trustee at the direction of the Company shall, to
the extent consistent with this Agreement, take such actions as may be necessary
to ensure that, if this Agreement were deemed to create a security interest in
the Conveyed Assets, such security interest would be deemed to be a perfected
security interest of first priority under applicable law and will be maintained
as such throughout the term of the Agreement. In connection herewith, the
Trustee shall have all of the rights and remedies of a secured party and
creditor under the Uniform Commercial Code as in force in the relevant
jurisdiction.
In connection with the sale, transfer and assignment referred to in the
third paragraph of this Section 2.01, the Company, concurrently with the
execution and delivery hereof, does deliver to, and deposit with, or cause to be
delivered to and deposited with, the Trustee or Custodian the Mortgage Files,
which shall on original issuance thereof and at all times be registered in the
name of the Trustee.
Concurrently with the execution and delivery hereof, the Company shall
cause assignments of the Mortgage Loans (other than any MERS Loans) to the
Trustee to be recorded or filed, except in states where, in the opinion of
counsel admitted to practice in such state acceptable to the Company, the
Trustee, the Certificate Insurer and the Rating Agencies submitted in lieu of
such recording or filing, such recording or filing is not required to protect
the Trustee's interest in such Mortgage Loans against creditors of, or against
sale, further assignments, satisfaction or discharge by the Lender, a Servicer,
the Company or the Master Servicer, and the Company shall cause to be filed the
UCC assignment or amendment and the UCC financing statement referred to in
clause (Y)(vii) and (ix), respectively, of the definition of "Mortgage File."
Notwithstanding the immediately preceding sentence, in the event that any
Mortgage Loan (other than any MERS Loan) is delivered to the Trustee by a
custodian which is not an affiliate of the Company and the related Mortgage File
does not contain an assignment of the Mortgage as required by clause (X)(iii)(1)
or clause (X)(iii)(2) of the definition of "Mortgage File," the Company shall
cause such custodian promptly to deliver such an assignment, but in no event
later than 30 days after the Closing Date. In connection with its servicing of
Cooperative Loans, the Master Servicer will use its best efforts to file timely
continuation statements, if
76
necessary, with regard to each financing statement and assignment relating to
Cooperative Loans.
In instances where the original recorded Mortgage or any intervening
assignment thereof (recorded or in recordable form) required to be included in
the Mortgage File pursuant to the definition of "Mortgage File" relating to a
Mortgage Loan is not included in the Mortgage File delivered to the Trustee
prior to or concurrently with the execution and delivery hereof (due to a delay
on the part of the recording office), the Company shall deliver to the Trustee a
fully legible reproduction of the original Mortgage or intervening assignment
provided that the related Lender or originator certifies on the face of such
reproduction(s) or copy as follows: "Certified true and correct copy of original
which has been transmitted for recordation." For purposes hereof, transmitted
for recordation means having been mailed or otherwise delivered for recordation
to the appropriate authority. In all such instances, the Company shall transmit
the original recorded Mortgage and any intervening assignments with evidence of
recording thereon (or a copy of such original Mortgage or intervening assignment
certified by the applicable recording office) (collectively, "Recording
Documents") to the Trustee within 270 days after the execution and delivery
hereof. In instances where, due to a delay on the part of the recording office
where any such Recording Documents have been delivered for recordation, the
Recording Documents cannot be delivered to the Trustee within 270 days after
execution and delivery hereof, the Company shall deliver to the Trustee within
such time period a certificate (a "Company Officer's Certificate") signed by the
Chairman of the Board, President, any Vice President or Treasurer of the Company
stating the date by which the Company expects to receive such Recording
Documents from the applicable recording office. In the event that Recording
Documents have still not been received by the Company and delivered to the
Trustee by the date specified in its previous Company Officer's Certificate
delivered to the Trustee, the Company shall deliver to the Trustee by such date
an additional Company Officer's Certificate stating a revised date by which the
Company expects to receive the applicable Recording Documents. This procedure
shall be repeated until the Recording Documents have been received by the
Company and delivered to the Trustee.
In instances where, due to a delay on the part of the title insurer, a
copy of the title insurance policy for a particular Mortgage Loan is not
included in the Mortgage File delivered to the Trustee prior to or concurrently
with the execution and delivery hereof, the Company shall provide a copy of such
title insurance policy to the Trustee within 90 days after the Company's receipt
of the Recording Documents necessary to issue such title insurance policy. In
addition, the Company shall, subject to the limitations set forth in the
preceding sentence, provide to the Trustee upon request therefor a duplicate
title insurance policy for any Mortgage Loan.
For Mortgage Loans for which the Company has received a Payoff after
the Cut-Off Date and prior to the date of execution and delivery hereof, the
Company, in lieu of delivering the above documents, herewith delivers to the
Trustee a certification of a Servicing Officer of the nature set forth in
Section 3.10.
The Trustee is authorized, with the Master Servicer's consent, to
appoint any bank or trust company approved by and unaffiliated with each of the
Company and the Master Servicer as Custodian of the documents or instruments
referred to above in this Section 2.01, and to enter into a Custodial Agreement
for such purpose, provided, however, that the Trustee shall be and
77
remain liable for the acts of any such Custodian only to the extent that it is
responsible for its own acts hereunder.
On or promptly after the Closing Date, the Master Servicer shall cause
the MERS(R) System to indicate that each MERS Loan, if any, has been assigned to
"State Street Bank and Trust Company, as Custodian/Trustee, without recourse" or
"State Street Bank and Trust Company, as Trustee for the benefit of the Holders
from time to time of Washington Mutual Mortgage Securities Corp. WaMu Mortgage
Pass-Through Certificates, Series 2001-S8, without recourse" by including in the
MERS(R) System computer files (a) the code necessary to identify the Trustee and
(b) the code necessary to identify the series of the Certificates issued in
connection with such Mortgage Loans. The Master Servicer shall not alter the
codes referenced in this paragraph with respect to any MERS Loan during the term
of this Agreement except in connection with an assignment of such MERS Loan or
de-registration thereof from the MERS(R) System in accordance with the terms of
this Agreement.
The Tax Matters Person, shall, on behalf of the REMIC I Trust Fund,
elect to treat the REMIC I Trust Fund as a REMIC within the meaning of Section
860D of the Code and, if necessary, under applicable state laws. Such election
shall be included in the Form 1066 and any appropriate state return to be filed
on behalf of REMIC I for its first taxable year.
The Closing Date is hereby designated as the "startup day" of REMIC I
within the meaning of Section 860G(a)(9) of the Code.
The regular interests (as set forth in the table contained in the
Preliminary Statement hereto) relating to the REMIC I Trust Fund are hereby
designated as "regular interests" for purposes of Section 860G(a)(1) of the
Code. The Class R-1 Certificates are being issued in a single Class, which is
hereby designated as the sole class of "residual interest" in the REMIC I Trust
Fund for purposes of Section 860G(a)(2) of the Code.
The parties intend that the affairs of the REMIC I Trust Fund formed
hereunder shall constitute, and that the affairs of the REMIC I Trust Fund shall
be conducted so as to qualify the REMIC I Trust Fund as a REMIC. In furtherance
of such intention, the Tax Matters Person shall, on behalf of the REMIC I Trust
Fund: (a) prepare and file, or cause to be prepared and filed, a federal tax
return using a calendar year as the taxable year and using an accrual method of
accounting for the REMIC I Trust Fund when and as required by the REMIC
Provisions and other applicable federal income tax laws; (b) make an election,
on behalf of the trust, for the REMIC I Trust Fund to be treated as a REMIC on
the federal tax return of the REMIC I Trust Fund for its first taxable year, in
accordance with the REMIC Provisions; (c) prepare and forward, or cause to be
prepared and forwarded, to the Holders of the REMIC I Regular Interests and the
Class R-1 Certificates and the Trustee, all information reports as and when
required to be provided to them in accordance with the REMIC Provisions, and
make available the information necessary for the application of Section 860E(e)
of the Code; (d) conduct the affairs of the REMIC I Trust Fund at all times that
any REMIC I Regular Interests are outstanding so as to maintain the status of
the REMIC I Trust Fund as a REMIC under the REMIC Provisions; (e) not knowingly
or intentionally take any action or omit to take any action that would cause the
termination of the REMIC status of the REMIC I Trust Fund; and (f) pay the
amount of any federal prohibited transaction penalty taxes imposed on the REMIC
I Trust Fund when and as the
78
same shall be due and payable (but such obligation shall not prevent the Company
or any other appropriate person from contesting any such tax in appropriate
proceedings and shall not prevent the Company from withholding payment of such
tax, if permitted by law, pending the outcome of such proceedings); provided,
that the Company shall be entitled to be indemnified by the REMIC I Trust Fund
for any such prohibited transaction penalty taxes if the Company's failure to
exercise reasonable care was not the primary cause of the imposition of such
prohibited transaction penalty taxes.
The Trustee and the Master Servicer shall promptly provide the Company
with such information in the possession of the Trustee or the Master Servicer,
respectively, as the Company may from time to time request for the purpose of
enabling the Company to prepare tax returns.
In the event that a Mortgage Loan is discovered to have a defect which,
had such defect been discovered before the startup day, would have prevented
such Mortgage Loan from being a "qualified mortgage" within the meaning of
Section 860G(a)(3) of the Code, and the Company does not repurchase such
Mortgage Loan within 90 days of such date, the Master Servicer, on behalf of the
Trustee, shall within 90 days of the date such defect is discovered sell such
Mortgage Loan at such price as the Master Servicer in its sole discretion,
determines to be the greatest price that will result in the purchase thereof
within 90 days of such date, unless the Master Servicer delivers to the Trustee
an Opinion of Counsel to the effect that continuing to hold such Mortgage Loan
will not adversely affect the status of the electing portion of the REMIC I
Trust Fund as a REMIC for federal income tax purposes.
In the event that any tax is imposed on "prohibited transactions" of
the REMIC I Trust Fund as defined in Section 860F of the Code and not paid by
the Company pursuant to clause (f) of the third preceding paragraph, such tax
shall be charged against amounts otherwise distributable to the Class R-1
Certificateholders. Notwithstanding anything to the contrary contained herein,
the Trustee is hereby authorized to retain from amounts otherwise distributable
to the Class R-1 Certificateholders on any Distribution Date sufficient funds to
reimburse the Tax Matters Person (or any agent therefor appointed in accordance
with the definition of "Tax Matters Person" herein, if applicable), for the
payment of such tax (upon the written request of the Tax Matters Person or its
agent, to the extent reimbursable, and to the extent that the Tax Matters Person
or its agent has not been previously reimbursed therefor).
Section 2.02. Acceptance by Trustee. The Trustee acknowledges receipt
(or with respect to any Mortgage Loan subject to a Custodial Agreement, receipt
by the Custodian thereunder) of the documents (or certified copies thereof as
specified in Section 2.01) referred to in Section 2.01 above, but without having
made the review required to be made within 45 days pursuant to this Section
2.02. The Trustee agrees, for the benefit of the Holders of the REMIC I Regular
Interests and Class R-1 Certificates, to review or cause the Custodian to review
each Mortgage File within 45 days after the Closing Date and deliver to the
Company a certification in the form attached as Exhibit M hereto, to the effect
that, except as noted, all documents required (in the case of instruments
described in clauses (X)(v) and (Y)(x) of the definition of "Mortgage File,"
known by the Trustee to be required) pursuant to the definition of "Mortgage
File" and Section 2.01 have been executed and received, and that such documents
relate to the Mortgage Loans identified in the Mortgage Loan Schedule. In
performing such review, the Trustee may rely upon the purported genuineness and
due execution of any such document, and on the purported
79
genuineness of any signature thereon. The Trustee shall not be required to make
any independent examination of any documents contained in each Mortgage File
beyond the review specifically required herein. The Trustee makes no
representations as to: (i) the validity, legality, enforceability or genuineness
of any of the Mortgage Loans identified on the Mortgage Loan Schedule, or (ii)
the collectability, insurability, effectiveness or suitability of any Mortgage
Loan. If the Trustee finds any document or documents constituting a part of a
Mortgage File not to have been executed or received, or to be unrelated to the
Mortgage Loans identified in the Mortgage Loan Schedule, the Trustee shall
promptly so notify the Company. The Company hereby covenants and agrees that, if
any such defect cannot be corrected or cured, the Company shall, not later than
60 days after the Trustee's notice to it respecting such defect, within the
three-month period commencing on the Closing Date (or within the two-year period
commencing on the Closing Date if the related Mortgage Loan is a "defective
obligation" within the meaning of Section 860G(a)(4)(B)(ii) of the Code and
Treasury Regulation Section 1.860G-2(f)), either (i) repurchase the related
Mortgage Loan from the Trustee at the Purchase Price, or (ii) substitute for any
Mortgage Loan to which such defect relates a different mortgage loan (a
"Substitute Mortgage Loan") which is a "qualified replacement mortgage" (as
defined in the Code) and, (iii) after such three-month or two-year period, as
applicable, the Company shall repurchase the Mortgage Loan from the Trustee at
the Purchase Price but only if the Mortgage Loan is in default or default is, in
the judgment of the Company, reasonably imminent. If such defect would cause the
Mortgage Loan to be other than a "qualified mortgage" (as defined in the Code),
then notwithstanding the previous sentence, the repurchase or substitution must
occur within the sooner of (i) 90 days from the date the defect was discovered
or (ii) in the case of substitution, two years from the Closing Date.
Such Substitute Mortgage Loan shall mature no later than, and not more
than two years earlier than, have a principal balance and Loan-to-Value Ratio
equal to or less than, and have a Pass-Through Rate on the date of substitution
equal to or no more than 1 percentage point greater than the Mortgage Loan being
substituted for. If the aggregate of the principal balances of the Substitute
Mortgage Loans substituted for a Mortgage Loan is less than the Principal
Balance of such Mortgage Loan, the Company shall pay the difference in cash to
the Trustee for deposit into the Certificate Account, and such payment by the
Company shall be treated in the same manner as proceeds of the repurchase by the
Company of a Mortgage Loan pursuant to this Section 2.02. Furthermore, such
Substitute Mortgage Loan shall otherwise have such characteristics so that the
representations and warranties of the Company set forth in Section 2.03 hereof
would not have been incorrect had such Substitute Mortgage Loan originally been
a Mortgage Loan, and the Company shall be deemed to have made such
representations and warranties as to such Substitute Mortgage Loan. A Substitute
Mortgage Loan may be substituted for a defective Mortgage Loan whether or not
such defective Mortgage Loan is itself a Substitute Mortgage Loan.
Notwithstanding anything herein to the contrary, each Substitute Mortgage Loan
shall be deemed to have the same Pass-Through Rate as the Mortgage Loan for
which it was substituted.
The Purchase Price for each purchased or repurchased Mortgage Loan
shall be deposited by the Company in the Certificate Account and, upon receipt
by the Trustee of written notification of such deposit signed by a Servicing
Officer, the Trustee shall release to the Company the related Mortgage File and
shall execute and deliver such instruments of transfer or assignment, in each
case without recourse, as shall be necessary to vest in the Company or its
designee or assignee title to any Mortgage Loan released pursuant hereto. In
furtherance of the
80
foregoing, if such Mortgage Loan is a MERS Loan and as a result of the
repurchase thereof such Mortgage Loan shall cease to be serviced by a servicer
that is a member of MERS or if the Company or its assignee shall so request, the
Master Servicer shall cause MERS to execute and deliver an assignment of the
Mortgage in recordable form from MERS to the Company or its assignee and shall
cause the Mortgage Loan to be removed from registration on the MERS(R) System in
accordance with MERS' rules and procedures. The obligation of the Company to
repurchase or substitute any Mortgage Loan as to which such a defect in a
constituent document exists shall constitute the sole remedy respecting such
defect available to the Holders of the REMIC I Regular Interests or the Class
R-1 Certificateholders or the Trustee on behalf of the Holders of the REMIC I
Regular Interests or the Class R-1 Certificateholders.
Section 2.03. Representations and Warranties of the Company Concerning
the Mortgage Loans. With respect to the conveyance of the Mortgage Loans
provided for in Section 2.01 herein, the Company hereby represents and warrants
to the Trustee that as of the Cut-Off Date unless otherwise indicated:
(i) The information set forth in the Mortgage Loan Schedule
was true and correct in all material respects at the date or dates
respecting which such information is furnished;
(ii) As of the Closing Date, each Mortgage relating to a
Mortgage Loan that is not a Cooperative Loan is a valid and enforceable
(subject to Section 2.03(xvi)) first lien on an unencumbered estate in
fee simple or leasehold estate in the related Mortgaged Property
subject only to (a) liens for current real property taxes and special
assessments; (b) covenants, conditions and restrictions, rights of way,
easements and other matters of public record as of the date of
recording such Mortgage, such exceptions appearing of record being
acceptable to mortgage lending institutions generally or specifically
reflected in the appraisal obtained in connection with the origination
of the Mortgage Loan; (c) exceptions set forth in the title insurance
policy relating to such Mortgage, such exceptions being acceptable to
mortgage lending institutions generally; and (d) other matters to which
like properties are commonly subject which do not materially interfere
with the benefits of the security intended to be provided by the
Mortgage;
(iii) Immediately upon the transfer and assignment
contemplated herein, the Trustee shall have good title to, and will be
the sole legal owner of, each Mortgage Loan, free and clear of any
encumbrance or lien (other than any lien under this Agreement);
(iv) As of the day prior to the Cut-Off Date, all payments due
on each Mortgage Loan had been made and no Mortgage Loan had been
delinquent (i.e., was more than 30 days past due) more than once in the
preceding 12 months and any such delinquency lasted for no more than 30
days;
(v) As of the Closing Date, there is no late assessment for
delinquent taxes outstanding against any Mortgaged Property;
(vi) As of the Closing Date, there is no offset, defense or
counterclaim to any Mortgage Note, including the obligation of the
Mortgagor to pay the unpaid principal or
81
interest on such Mortgage Note except to the extent that the Buydown
Agreement for a Buydown Loan forgives certain indebtedness of a
Mortgagor;
(vii) As of the Closing Date, each Mortgaged Property is free
of damage and in good repair, ordinary wear and tear excepted;
(viii) Each Mortgage Loan at the time it was made complied
with all applicable state and federal laws, including, without
limitation, usury, equal credit opportunity, disclosure and recording
laws;
(ix) Each Mortgage Loan was originated by a savings
association, savings bank, credit union, insurance company, or similar
institution which is supervised and examined by a federal or state
authority or by a mortgagee approved by the FHA and will be serviced by
an institution which meets the servicer eligibility requirements
established by the Company;
(x) As of the Closing Date, each Mortgage Loan which is not a
Cooperative Loan is covered by an ALTA form or CLTA form of mortgagee
title insurance policy or other form of policy of insurance which, as
of the origination date of such Mortgage Loan, was acceptable to Xxxxxx
Mae or Xxxxxxx Mac, and has been issued by, and is the valid and
binding obligation of, a title insurer which, as of the origination
date of such Mortgage Loan, was acceptable to Xxxxxx Mae or Xxxxxxx Mac
and qualified to do business in the state in which the related
Mortgaged Property is located. Such policy insures the originator of
the Mortgage Loan, its successors and assigns as to the first priority
lien of the Mortgage in the original principal amount of the Mortgage
Loan subject to the exceptions set forth in such policy. Such policy is
in full force and effect and inures to the benefit of the Holders of
the REMIC I Regular Interests and the Class R-1 Certificateholders upon
the consummation of the transactions contemplated by this Agreement and
no claims have been made under such policy, and no prior holder of the
related Mortgage, including the Company, has done, by act or omission,
anything which would impair the coverage of such policy;
(xi) Each Mortgage Loan with a Loan-to-Value Ratio as of the
Cut-Off Date in excess of 80% was covered by a Primary Insurance Policy
or an FHA insurance policy or a VA guaranty (or was secured by
Additional Collateral), and such policy or guaranty is valid and
remains in full force and effect;
(xii) As of the Closing Date, all policies of insurance
required by this Agreement or by a Selling and Servicing Contract have
been validly issued and remain in full force and effect, including such
policies covering the Company, the Master Servicer or any Servicer;
(xiii) As of the Closing Date, each insurer issuing a Primary
Insurance Policy holds a rating acceptable to the Rating Agencies;
(xiv) Each Mortgage (exclusive of any riders thereto) was
documented by appropriate Xxxxxx Mae/Xxxxxxx Mac mortgage instruments
in effect at the time of origination, or other instruments approved by
the Company;
82
(xv) As of the Closing Date, the Mortgaged Property securing
each Mortgage relating to a Mortgage Loan that is not a Cooperative
Loan is improved with a one- to four-family dwelling unit, including
units in a duplex, triplex, fourplex, condominium project, townhouse, a
planned unit development or a de minimis planned unit development;
(xvi) As of the Closing Date, each Mortgage and Mortgage Note
is the legal, valid and binding obligation of the maker thereof and is
enforceable in accordance with its terms, except only as such
enforcement may be limited by laws affecting the enforcement of
creditors' rights generally and principles of equity;
(xvii) As of the date of origination, as to Mortgaged
Properties which are units in condominiums or planned unit
developments, all of such units met Xxxxxx Mae or Xxxxxxx Mac
requirements, are located in a condominium or planned unit development
projects which have received Xxxxxx Mae or Xxxxxxx Mac approval, or are
approvable by Xxxxxx Mae or Xxxxxxx Mac or have otherwise been approved
by the Company;
(xviii) None of the Mortgage Loans are Buydown Loans;
(xix) Based solely on representations of the Mortgagors
obtained at the origination of the related Mortgage Loans,
approximately 95.78% (by Principal Balance) of the Group I Loans will
be secured by owner occupied Mortgaged Properties which are the primary
residences of the related Mortgagors, approximately 3.87% (by Principal
Balance) of the Group I Loans will be secured by owner occupied
Mortgaged Properties which were second or vacation homes of the
Mortgagors and approximately 0.35% (by Principal Balance) of the Group
I Loans will be secured by Mortgaged Properties which were investor
properties of the related Mortgagors; and approximately 98.42% (by
Principal Balance) of the Group II Loans will be secured by owner
occupied Mortgaged Properties which are the primary residences of the
related Mortgagors, approximately 1.41% (by Principal Balance) of the
Group II Loans will be secured by owner occupied Mortgaged Properties
which were second or vacation homes of the Mortgagors and approximately
0.17% (by Principal Balance) of the Group II Loans will be secured by
Mortgaged Properties which were investor properties of the related
Mortgagors;
(xx) Prior to origination or refinancing, an appraisal of each
Mortgaged Property was made by an appraiser on a form satisfactory to
Xxxxxx Mae or Xxxxxxx Mac;
(xxi) The Mortgage Loans have been underwritten substantially
in accordance with the applicable Underwriting Standards;
(xxii) All of the Mortgage Loans have due-on-sale clauses;
however, the due on sale provisions may not be exercised at the time of
a transfer if prohibited by law;
(xxiii) The Company used no adverse selection procedures in
selecting the Mortgage Loans from among the outstanding fixed-rate
conventional mortgage loans purchased by it which were available for
inclusion in the Mortgage Pool and as to which the representations and
warranties in this Section 2.03 could be made;
83
(xxiv) With respect to each Cooperative Loan, the Cooperative
Stock that is pledged as security for the Cooperative Loan is held by a
person as a tenant-stockholder (as defined in Section 216 of the Code)
in a cooperative housing corporation (as defined in Section 216 of the
Code);
(xxv) Each Cooperative Loan is secured by a valid, subsisting
and enforceable (except as such enforcement may be limited by laws
affecting the enforcement of creditors' rights generally and principles
of equity) perfected first lien and security interest in the related
Cooperative Stock securing the related Mortgage Note, subject only to
(a) liens of the Cooperative for unpaid assessments representing the
Mortgagor's pro rata share of the Cooperative's payments for its
blanket mortgage, current and future real property taxes, insurance
premiums, maintenance fees and other assessments to which like
collateral is commonly subject, and (b) other matters to which like
collateral is commonly subject which do not materially interfere with
the benefits of the security intended to be provided by the Security
Agreement;
(xxvi) With respect to any Mortgage Loan as to which an
affidavit has been delivered to the Trustee certifying that the
original Mortgage Note is a Destroyed Mortgage Note, if such Mortgage
Loan is subsequently in default, the enforcement of such Mortgage Loan
or of the related Mortgage by or on behalf of the Trustee will not be
materially adversely affected by the absence of the original Mortgage
Note;
(xxvii) Based upon an appraisal of the Mortgaged Property
securing each Mortgage Loan, approximately 95.04% (by Principal
Balance) of the Group I Loans had a current Loan-to-Value Ratio less
than or equal to 80%, approximately 1.48% (by Principal Balance) of the
Group I Loans had a current Loan-to-Value Ratio greater than 80% but
less than or equal to 95% and approximately 3.48% (by Principal
Balance) of the Group I Loans had a current Loan-to-Value Ratio greater
than 95%; and approximately 93.64% (by Principal Balance) of the Group
II Loans had a current Loan-to-Value Ratio less than or equal to 80%,
approximately 5.21% (by Principal Balance) of the Group II Loans had a
current Loan-to-Value Ratio greater than 80% but less than or equal to
95% and approximately 1.16% (by Principal Balance) of the Group II
Loans had a current Loan-to-Value Ratio greater than 95%;
(xxviii) Approximately 70.60% (by Principal Balance) of the
Group I Loans and approximately 63.42% (by Principal Balance) of the
Group II Loans were originated for the purpose of refinancing existing
mortgage debt, including cash-out refinancings; and approximately
29.39% (by Principal Balance) of the Group I Loans and approximately
35.58% (by Principal Balance) of the Group II Loans were originated for
the purpose of purchasing the Mortgaged Property;
(xxix) Not less than approximately 77.36% and 87.57% (by
Principal Balance) of the Group I Loans and Group II Loans,
respectively, were originated under full documentation programs;
(xxx) Each Additional Collateral Loan is covered by a Surety
Bond;
84
(xxxi) Each Additional Collateral Loan is secured solely by
the related Mortgaged Property and by a securities account owned by the
related Mortgagor or a guarantor; and
(xxxii) Each Mortgage Loan constitutes a qualified mortgage
under Section 860G(a)(3)(A) of the Code and Treasury Regulations
Section 1.860G-2(a)(1).
It is understood and agreed that the representations and warranties set
forth in this Section 2.03 shall survive delivery of the respective Mortgage
Files to the Trustee or the Custodian, as the case may be, and shall continue
throughout the term of this Agreement. Upon discovery by any of the Company, the
Master Servicer, the Trustee, the Certificate Insurer or the Custodian of a
breach of any of the foregoing representations and warranties which materially
and adversely affects the value of the related Mortgage Loans or the interests
of the Certificateholders or the Certificate Insurer in the related Mortgage
Loans, the Company, the Master Servicer, the Trustee, the Certificate Insurer or
the Custodian, as the case may be, discovering such breach shall give prompt
written notice to the others. Within 90 days of its discovery or its receipt of
notice of breach, the Company shall repurchase, subject to the limitations set
forth in the definition of "Purchase Price," or substitute for the affected
Mortgage Loan or Mortgage Loans or any property acquired in respect thereof from
the Trustee, unless it has cured such breach in all material respects. After the
end of the three-month period beginning on the "start-up day," any such
substitution shall be made only if the Company provides to the Trustee an
Opinion of Counsel reasonably satisfactory to the Trustee that each Substitute
Mortgage Loan will be a "qualified replacement mortgage" within the meaning of
Section 860G(a)(4) of the Code. Such substitution shall be made in the manner
and within the time limits set forth in Section 2.02. Any such repurchase by the
Company shall be accomplished in the manner and at the Purchase Price, if
applicable, but shall not be subject to the time limits, set forth in Section
2.02. It is understood and agreed that the obligation of the Company to provide
such substitution or to make such repurchase of any affected Mortgage Loan or
Mortgage Loans or any property acquired in respect thereof as to which a breach
has occurred and is continuing shall constitute the sole remedy respecting such
breach available to the Holders of the REMIC I Regular Interests and the Class
R-1 Certificateholders or the Trustee on behalf of the Holders of the REMIC I
Regular Interests and the Class R-1 Certificateholders.
Section 2.04. Acknowledgment of Transfer of Trust Fund; Authentication
of Class R-1 Certificates. The Trustee hereby accepts the Trust created hereby,
acknowledges and accepts the transfer and assignment to it of the property
constituting the Trust Fund, but without having made the review required to be
made within 45 days pursuant to Section 2.02, and declares that as of the
Closing Date it holds and shall hold any documents constituting a part of the
Trust Fund, and the Trust Fund, as Trustee in trust, upon the trusts herein set
forth, for the use and benefit of all present and future Holders of the REMIC I
Regular Interests and the Class R-1 Certificates. In connection therewith, as of
the Closing Date, in exchange for the property constituting the Trust Fund, the
Trustee does hereby convey to the Company the REMIC I Regular Interests and
shall cause to be authenticated and delivered, upon and pursuant to the order of
the Company, the Class R-1 Certificates in Authorized Denominations evidencing
the residual beneficial ownership interest in the REMIC I Trust Fund.
85
Section 2.05. Conveyance of REMIC II; REMIC Election and Designations.
A trust ("REMIC II") of which the Trustee is the trustee is hereby created under
the laws of the State of New York for the benefit of the Holders of the
Certificates (other than the Class R-1 Certificates) and the Certificate
Insurer. The purpose of REMIC II is to hold the REMIC II Trust Fund and provide
for the issuance, execution and delivery of the Certificates (other than the
Class R-1 Certificates). The assets of REMIC II shall consist of the REMIC II
Trust Fund. REMIC II shall be irrevocable.
The assets of REMIC II shall remain in the custody of the Trustee, on
behalf of REMIC II, and shall be kept in REMIC II. Moneys to the credit of REMIC
II shall be held by the Trustee and invested as provided herein. All assets
received and held in REMIC II will not be subject to any right, charge, security
interest, lien or claim of any kind in favor of State Street Bank and Trust
Company in its own right, or any Person claiming through it. The Trustee, on
behalf of REMIC II, shall not have the power or authority to transfer, assign,
hypothecate, pledge or otherwise dispose of any of the assets of REMIC II to any
Person, except as permitted herein. No creditor of a beneficiary of REMIC II, of
the Trustee, of the Master Servicer or of the Company shall have any right to
obtain possession of, or otherwise exercise legal or equitable remedies with
respect to, the property of REMIC II, except in accordance with the terms of
this Agreement.
Concurrently with the execution and delivery hereof, the Company does
hereby irrevocably sell, transfer, assign, set over, and otherwise convey to the
Trustee, in trust for the benefit of the Certificateholders (other than the
Class R-1 Certificateholders), without recourse, all the Company's right, title
and interest in and to the REMIC II Trust Fund, including all interest and
principal received by the Company on or with respect to the REMIC I Regular
Interests after the Cut-Off Date. The Trustee hereby accepts REMIC II created
hereby and accepts delivery of the REMIC II Trust Fund on behalf of REMIC II and
acknowledges that it holds the REMIC I Regular Interests for the benefit of the
Holders of the Certificates (other than the Class R-1 Certificates) issued
pursuant to this Agreement. It is the express intent of the parties hereto that
the conveyance of the REMIC II Trust Fund to the Trustee by the Company as
provided in this Section 2.05 be, and be construed as, an absolute sale of the
REMIC II Trust Fund. It is, further, not the intention of the parties that such
conveyance be deemed the grant of a security interest in the REMIC II Trust Fund
by the Company to the Trustee to secure a debt or other obligation of the
Company. However, in the event that, notwithstanding the intent of the parties,
the REMIC II Trust Fund is held to be the property of the Company, or if for any
other reason this Agreement is held or deemed to create a security interest in
the REMIC II Trust Fund, then
(a) this Agreement shall be deemed to be a security agreement;
(b) the conveyance provided for in this Section 2.05 shall be deemed to
be a grant by the Company to the Trustee of, and the Company hereby grants to
the Trustee, to secure all of the Company's obligations hereunder, a security
interest in all of the Company's right, title, and interest, whether now owned
or hereafter acquired, in and to:
(I) The REMIC I Regular Interests, including without
limitation all rights represented thereby in and to (i) the Mortgage
Loans identified on the Mortgage Loan
86
Schedule, including the related Mortgage Notes, Mortgages, Cooperative
Stock Certificates, and Cooperative Leases, the security agreements and
guaranties constituting part of the related Additional Collateral, all
Substitute Mortgage Loans and all distributions with respect to such
Mortgage Loans and Substitute Mortgage Loans payable on and after the
Cut-Off Date, (ii) the Certificate Account, the Investment Account, the
Rounding Accounts, the Class II-A-24 Reserve Fund and all money or
other property held therein, and the Custodial Accounts for P&I, and
the Custodial Accounts for Reserves and any Buydown Fund Account (to
the extent of the amounts on deposit therein attributable to the
Mortgage Loans); (iii) the Certificate Insurance Policy and amounts
paid or payable by the insurer under the Surety Bonds (with respect to
the Additional Collateral Loans), any FHA insurance policy or any
Primary Insurance Policy and proceeds of any VA guaranty and any other
insurance policy related to any Mortgage Loan or the Mortgage Pool; and
(iv) all rights arising from or by virtue of the disposition of, or
collections with respect to, or insurance proceeds payable with respect
to, or claims against other persons with respect to, all or any part of
the collateral described in (i)-(iii) above (including any accrued
discount realized on liquidation of any investment purchased at a
discount);
(II) All accounts, general intangibles, chattel paper,
instruments, documents, money, deposit accounts, goods, letters of
credit, letter-of-credit rights, oil, gas, and other minerals, and
investment property consisting of, arising from or relating to any of
the foregoing; and
(III) All proceeds of the foregoing;
(c) the possession by the Trustee of any of the foregoing property
shall be deemed to be possession by the secured party or possession by a
purchaser for purposes of perfecting the security interest pursuant to the
Uniform Commercial Code (including, without limitation, Sections 9-313 and 9-314
thereof) as in force in the relevant jurisdiction; and
(d) notifications to persons holding such property, and
acknowledgments, receipts or confirmations from persons holding such property,
shall be deemed notifications to, or acknowledgments, receipts or confirmations
from, securities intermediaries, bailees or agents of, or persons holding for,
the Trustee, as applicable, for the purpose of perfecting such security interest
under applicable law.
The Company and the Trustee shall, to the extent consistent with this
Agreement, take such actions as may be necessary to ensure that, if this
Agreement were deemed to create a security interest in the REMIC II Trust Fund,
such security interest would be deemed to be a perfected security interest of
first priority under applicable law and will be maintained as such throughout
the term of this Agreement. In connection herewith, the Trustee shall have all
of the rights and remedies of a secured party and creditor under the Uniform
Commercial Code as in force in the relevant jurisdiction.
The Trustee is authorized, with the Master Servicer's consent, to
appoint any bank or trust company approved by and unaffiliated with each of the
Company and the Master Servicer as Custodian of the documents or instruments
referred to above in this Section 2.05, and to enter
87
into a Custodial Agreement for such purpose; provided, however, that the Trustee
shall be and remain liable for actions of any such Custodian only to the extent
it would otherwise be responsible for such acts hereunder.
The Tax Matters Person shall, on behalf of the REMIC II Trust Fund,
elect to treat the REMIC II Trust Fund as a REMIC within the meaning of Section
860D of the Code and, if necessary, under applicable state laws. Such election
shall be included in the Form 1066 and any appropriate state return to be filed
on behalf of REMIC II for its first taxable year.
The Closing Date is hereby designated as the "startup day" of REMIC II
within the meaning of Section 860G(a)(9) of the Code.
The regular interests (as set forth in the table contained in the
Preliminary Statement hereto) relating to the REMIC II Trust Fund are hereby
designated as "regular interests" for purposes of Section 860G(a)(1) of the
Code. The Class R-2 Certificates are being issued in a single Class, which is
hereby designated as the sole class of "residual interest" in the REMIC II Trust
Fund for purposes of Section 860G(a)(2) of the Code.
The parties intend that the affairs of the REMIC II Trust Fund formed
hereunder shall constitute, and that the affairs of the REMIC II Trust Fund
shall be conducted so as to qualify it as, a REMIC. In furtherance of such
intention, the Tax Matters Person shall, on behalf of the REMIC II Trust Fund:
(a) prepare and file, or cause to be prepared and filed, a federal tax return
using a calendar year as the taxable year for the REMIC II Trust Fund when and
as required by the REMIC provisions and other applicable federal income tax
laws; (b) make an election, on behalf of the REMIC II Trust Fund, to be treated
as a REMIC on the federal tax return of the REMIC II Trust Fund for its first
taxable year, in accordance with the REMIC provisions; (c) prepare and forward,
or cause to be prepared and forwarded, to the Certificateholders (other than the
Class R-1 Certificateholders) all information reports as and when required to be
provided to them in accordance with the REMIC provisions; (d) conduct the
affairs of the REMIC II Trust Fund at all times that any of the REMIC II Regular
Interests and the Class R-2 Certificates are outstanding so as to maintain the
status of the REMIC II Trust Fund as a REMIC under the REMIC provisions; (e) not
knowingly or intentionally take any action or omit to take any action that would
cause the termination of the REMIC status of the REMIC II Trust Fund; and (f)
pay the amount of any federal prohibited transaction penalty taxes imposed on
the REMIC II Trust Fund when and as the same shall be due and payable (but such
obligation shall not prevent the Company or any other appropriate person from
contesting any such tax in appropriate proceedings and shall not prevent the
Company from withholding payment of such tax, if permitted by law, pending the
outcome of such proceedings); provided, that the Company shall be entitled to be
indemnified from the REMIC II Trust Fund for any such prohibited transaction
penalty taxes if the Company's failure to exercise reasonable care was not the
primary cause of the imposition of such prohibited transaction penalty taxes.
In the event that any tax is imposed on "prohibited transactions" of
the REMIC II Trust Fund as defined in Section 860F of the Code and not paid by
the Company pursuant to clause (f) of the preceding paragraph, such tax shall be
charged against amounts otherwise distributable to the Holders of the Class R-2
Certificates. Notwithstanding anything to the contrary contained herein, the
Company is hereby authorized to retain from amounts otherwise distributable to
the
88
Holders of the Class R-2 Certificates on any Distribution Date sufficient funds
to reimburse the Company for the payment of such tax (to the extent that the
Company has not been previously reimbursed therefor).
Section 2.06. Acceptance by Trustee; Authentication of Certificates. The Trustee
hereby accepts the REMIC II Trust created hereby, acknowledges and accepts the
assignment to it of the property constituting the REMIC II Trust Fund and
declares that as of the Closing Date it holds and shall hold any documents
constituting a part of the REMIC II Trust Fund, and the REMIC II Trust Fund, as
Trustee in trust, upon the trusts herein set forth, for the use and benefit of
all present and future Certificateholders (other than the Class R-1
Certificateholders) and the Certificate Insurer. In connection therewith, as of
the Closing Date, in exchange for the property constituting the REMIC II Trust
Fund, the Trustee shall cause to be authenticated and delivered, upon and
pursuant to the order of the Company, the Certificates (other than the Class R-1
Certificates) in Authorized Denominations evidencing the entire ownership of the
REMIC II Trust Fund.
ARTICLE III
Administration and Servicing of Mortgage Loans
Section 3.01. The Company to Act as Master Servicer. The Company shall act as
Master Servicer to service and administer the Mortgage Loans on behalf of the
Trustee and for the benefit of the Certificateholders and the Certificate
Insurer in accordance with the terms hereof, consistent with prudent mortgage
loan servicing practices and (unless inconsistent with prudent mortgage loan
servicing practices) in the same manner in which, and with the same care, skill,
prudence and diligence with which, it services and administers similar mortgage
loans for other portfolios, and shall have full power and authority to do or
cause to be done any and all things in connection with such servicing and
administration which a prudent servicer of mortgage loans would do under similar
circumstances, including, without limitation, the power and authority to bring
actions and defend the Trust Fund on behalf of the Trustee in order to enforce
the terms of the Mortgage Notes. The Master Servicer may perform its master
servicing responsibilities through agents or independent contractors, but shall
not thereby be released from any of its responsibilities hereunder and the
Master Servicer shall diligently pursue all of its rights against such agents or
independent contractors.
The Master Servicer shall make reasonable efforts to collect or cause
to be collected all payments called for under the terms and provisions of the
Mortgage Loans and shall, to the extent such procedures shall be consistent with
this Agreement and the terms and provisions of any Primary Insurance Policy, any
FHA insurance policy or VA guaranty, any hazard insurance policy, and federal
flood insurance, cause to be followed such collection procedures as are followed
with respect to mortgage loans comparable to the Mortgage Loans and held in
portfolios of responsible mortgage lenders in the local areas where each
Mortgaged Property is located. The Master Servicer shall enforce "due-on-sale"
clauses with respect to the related Mortgage Loans, to the extent permitted by
law, subject to the provisions set forth in Section 3.08.
89
Consistent with the foregoing, the Master Servicer may, in accordance
with prudent mortgage loan servicing practices, (i) waive or cause to be waived
any assumption fee or late payment charge in connection with the prepayment of
any Mortgage Loan and (ii) only upon determining that the coverage of any
applicable insurance policy or guaranty related to a Mortgage Loan will not be
materially adversely affected, arrange a schedule, running for no more than 180
days after the first delinquent Due Date, for payment of any delinquent
installment on any Mortgage Note or for the liquidation of delinquent items.
Subject to the fourth sentence of this paragraph, the Master Servicer shall have
the right, but not the obligation, to purchase any Mortgage Loan delinquent 90
consecutive days or more for an amount equal to its Purchase Price; provided,
however, that the aggregate Purchase Price of Mortgage Loans so purchased
pursuant to this sentence shall not exceed one-half of one percent (0.50%) of
the aggregate Principal Balance, as of the Cut-Off Date, of all Mortgage Loans.
Subject to the fourth sentence of this paragraph, the Master Servicer shall also
have the right, but not the obligation, to purchase, for an amount equal to its
Purchase Price, any Mortgage Loan delinquent 90 consecutive days or more, for
the purpose of requiring the Person who sold such Mortgage Loan to the Company
to repurchase such Mortgage Loan based on a breach of a representation or
warranty made by such Person in connection with the Company's purchase or
acquisition of such Mortgage Loan. Notwithstanding the immediately preceding two
sentences, the Master Servicer's right to purchase any Mortgage Loan pursuant to
either of such preceding sentences shall be subject to the following additional
conditions: (x) if the date on which the Mortgage Loan first became 90-day
delinquent (the "Initial Delinquency Date") occurred during the first two
calendar months of a calendar quarter, the Master Servicer may exercise the
purchase right during the period commencing on the Initial Delinquency Date and
ending on the last Master Servicer Business Day of such calendar quarter, (y) if
the Initial Delinquency Date occurred during the third calendar month of a
calendar quarter, the Master Servicer may exercise the purchase right during the
period commencing on the first day of the immediately succeeding calendar
quarter and ending on the last Master Servicer Business Day of such succeeding
calendar quarter and (z) if the Master Servicer does not exercise the purchase
right with respect to a Mortgage Loan during the period specified in clause (x)
or (y), as applicable, such Mortgage Loan shall thereafter again become eligible
for purchase pursuant to the preceding two sentences only after the Mortgage
Loan ceases to be 90-day delinquent and thereafter becomes 90-day delinquent
again. For purposes of this paragraph, a Mortgage Loan is considered delinquent
for 90 consecutive days if a Monthly Payment is not received by the first day of
the third month following the month during which such payment was due.
Consistent with the terms of this Section 3.01, the Master Servicer may
waive, modify or vary any term of any Mortgage Loan or consent to the
postponement of strict compliance with any such term or in any manner grant
indulgence to any Mortgagor 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 adversely affected by such
waiver, modification, postponement or indulgence; provided, however, that
(unless the Mortgagor is in default with respect to the Mortgage Loan or in the
reasonable judgment of the Master Servicer such default is imminent) the Master
Servicer shall not permit any modification with respect to any Mortgage Loan
that would (i) change the applicable Mortgage Interest Rate, defer or forgive
the payment of any principal or interest, reduce the outstanding principal
balance (except for actual payments of principal) or extend the final maturity
date with respect to such Mortgage Loan, or (ii) be
90
inconsistent with the terms of any applicable Primary Insurance Policy, FHA
insurance policy, VA guaranty, hazard insurance policy or federal flood
insurance policy. Notwithstanding the foregoing, the Master Servicer shall not
permit any modification with respect to any Mortgage Loan that would both
constitute a sale or exchange of such Mortgage Loan within the meaning of
Section 1001 of the Code (including any proposed, temporary or final regulations
promulgated thereunder) (other than in connection with a proposed conveyance or
assumption of such Mortgage Loan that is treated as a Principal Prepayment or in
a default situation) and cause any REMIC to fail to qualify as such under the
Code. The Master Servicer shall be entitled to approve a request from a
Mortgagor for a partial release of the related Mortgaged Property, the granting
of an easement thereon in favor of another Person, any alteration or demolition
of the related Mortgaged Property or other similar matters 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 adversely
affected thereby and that the applicable trust fund would not fail to continue
to qualify as a REMIC under the Code as a result thereof and that no tax on
"prohibited transactions" or "contributions" after the startup day would be
imposed on any REMIC as a result thereof.
The Master Servicer is hereby authorized and empowered by the Trustee
to execute and deliver or cause to be executed and delivered on behalf of the
Holders of the REMIC I Regular Interests and the Class R-1 Certificateholders,
and the Trustee or any of them, any and all instruments of satisfaction or
cancellation, or of partial or full release, discharge or modification,
assignments of Mortgages and endorsements of Mortgage Notes in connection with
refinancings (in jurisdictions where such assignments are the customary and
usual standard of practice of mortgage lenders) and all other comparable
instruments, with respect to the Mortgage Loans and with respect to the
Mortgaged Properties. The Master Servicer is hereby further authorized and
empowered by the Trustee to execute and deliver or cause to be executed and
delivered on behalf of the Holders of the REMIC I Regular Interests, the Class
R-1 Certificateholders and the Trustee, or any of them, such instruments of
assignment or other comparable instruments as the Master Servicer shall, in its
sole judgment, deem appropriate in order to register any Mortgage Loan on the
MERS(R) System or to cause the removal of any Mortgage Loan from registration
thereon. Any expenses incurred in connection with the actions described in the
preceding sentence shall be borne by the Master Servicer with no right of
reimbursement; provided, however, that any such expenses incurred as a result of
any termination by MERS of the MERS(R) System shall be reimbursable to the
Master Servicer. The Trustee shall execute and furnish to the Master Servicer,
at the Master Servicer's direction, any powers of attorney and other documents
prepared by the Master Servicer and determined by the Master Servicer to be
necessary or appropriate to enable the Master Servicer to carry out its
supervisory, servicing and administrative duties under this Agreement.
The Master Servicer and each Servicer shall obtain (to the extent
generally commercially available) and maintain fidelity bond and errors and
omissions coverage acceptable to Xxxxxx Xxx or Xxxxxxx Mac with respect to their
obligations under this Agreement and the applicable Selling and Servicing
Contract, respectively. The Master Servicer or each Servicer, as applicable,
shall establish escrow accounts for, or pay when due (by means of an advance),
any tax liens in connection with the Mortgaged Properties that are not paid by
the Mortgagors when due to the extent that any such payment would not constitute
a Nonrecoverable Advance when made.
91
In connection with the servicing and administering of each Mortgage
Loan, the Master Servicer and any affiliate of the Master Servicer (i) may
perform services such as appraisals, default management and (in the case of
affiliates only) brokerage services that are not customarily provided by
servicers of mortgage loans, and shall be entitled to reasonable compensation
therefor and (ii) may, at its own discretion and on behalf of the Trustee,
obtain credit information in the form of a "credit score" from a credit
repository.
Section 3.02. Custodial Accounts. The Master Servicer shall cause to be
established and maintained by each Servicer under the Master Servicer's
supervision the Custodial Account for P&I, Buydown Fund Accounts (if any) and
special Custodial Account for Reserves and shall deposit or cause to be
deposited therein daily the amounts related to the Mortgage Loans required by
the Selling and Servicing Contracts to be so deposited. Proceeds received with
respect to individual Mortgage Loans from any title, hazard, or FHA insurance
policy, VA guaranty, Primary Insurance Policy or other insurance policy (other
than any Special Primary Insurance Policy) covering such Mortgage Loans shall be
deposited first in the Custodial Account for Reserves if required for the
restoration or repair of the related Mortgaged Property. Otherwise, Insurance
Proceeds (other than proceeds from any Special Primary Insurance Policy) shall
be deposited in the Custodial Account for P&I, and shall be applied to the
balances of the related Mortgage Loans as payments of interest and principal.
The Master Servicer is hereby authorized to make withdrawals from and
to issue drafts against the Custodial Accounts for P&I and the Custodial
Accounts for Reserves for the purposes required or permitted by this Agreement.
Each Custodial Account for P&I and each Custodial Account for Reserves shall
bear a designation clearly showing the respective interests of the applicable
Servicer, as trustee, and of the Master Servicer, in substantially one of the
following forms:
(a) With respect to the Custodial Account for P&I: (i)
[Servicer's Name], as agent, trustee and/or bailee of principal and
interest custodial account for Washington Mutual Mortgage Securities
Corp., its successors and assigns, for various owners of interests in
Washington Mutual Mortgage Securities Corp. mortgage-backed pools or
(ii) [Servicer's Name] in trust for Washington Mutual Mortgage
Securities Corp.;
(b) With respect to the Custodial Account for Reserves: (i)
[Servicer's Name], as agent, trustee and/or bailee of taxes and
insurance custodial account for Washington Mutual Mortgage Securities
Corp., its successors and assigns for various mortgagors and/or various
owners of interests in Washington Mutual Mortgage Securities Corp.
mortgage-backed pools or (ii) [Servicer's Name] in trust for Washington
Mutual Mortgage Securities Corp. and various Mortgagors.
The Master Servicer hereby undertakes to assure remittance to the
Certificate Account of all amounts relating to the Mortgage Loans that have been
collected by any Servicer and are due to the Certificate Account pursuant to
Section 4.01 of this Agreement.
Funds held in the Custodial Account for P&I and the Custodial Account
for Reserves may, at the Master Servicer's option, be invested in (i) one or
more Eligible Investments which shall in no event mature later than the Business
Day prior to the related Withdrawal Date (except
92
if such Eligible Investments are obligations of the Trustee, such Eligible
Investments may mature on the Withdrawal Date), or (ii) such other instruments
as shall be required to maintain the Ratings (determined in the case of the
Insured Certificates, without giving effect to the Certificate Insurance Policy)
and which are reasonably acceptable to the Certificate Insurer.
Section 3.03. The Investment Account; Eligible Investments.(a) Not later than
the Withdrawal Date, the Master Servicer shall withdraw or direct the withdrawal
of funds in the Custodial Accounts for P&I, for deposit in the Investment
Account, in an amount representing:
(i) Scheduled installments of principal and interest on the
Mortgage Loans received or advanced by the applicable Servicers which
were due on the related Due Date, net of Servicing Fees due the
applicable Servicers and less any amounts to be withdrawn later by the
applicable Servicers from the applicable Buydown Fund Accounts;
(ii) Payoffs and the proceeds of other types of liquidations
of the Mortgage Loans received by the applicable Servicer for such
Mortgage Loans during the applicable Payoff Period, with interest to
the date of Payoff or liquidation less any amounts to be withdrawn
later by the applicable Servicers from the applicable Buydown Fund
Accounts; and
(iii) Non-Excluded Curtailments received by the applicable
Servicers in the Prior Period.
At its option, the Master Servicer may invest funds withdrawn from the
Custodial Accounts for P&I, as well as any Buydown Funds, Insurance Proceeds and
Liquidation Proceeds previously received by the Master Servicer (including
amounts paid by the Company in respect of any Purchase Obligation or its
substitution obligations set forth in Section 2.02 or Section 2.03 or in
connection with the exercise of the option to terminate this Agreement pursuant
to Section 9.01) for its own account and at its own risk, during any period
prior to their deposit in the Certificate Account. Such funds, as well as any
funds which were withdrawn from the Custodial Accounts for P&I on or before the
Withdrawal Date, but not yet deposited into the Certificate Account, shall
immediately be deposited by the Master Servicer with the Investment Depository
in an Investment Account in the name of the Master Servicer and the Trustee for
investment only as set forth in this Section 3.03. The Master Servicer shall
bear any and all losses incurred on any investments made with such funds and
shall be entitled to retain all gains realized on such investments as additional
servicing compensation. Not later than the Business Day prior to the
Distribution Date, the Master Servicer shall deposit such funds, net of any
gains (except Payoff Earnings) earned thereon, in the Certificate Account.
(b) Funds held in the Investment Account shall be invested in (i) one
or more Eligible Investments which shall in no event mature later than the
Business Day prior to the related Distribution Date (except if such Eligible
Investments are obligations of the Trustee, such Eligible Investments may mature
on the Distribution Date), or (ii) such other instruments as shall be required
to maintain the Ratings (determined in the case of the Insured Certificates,
without giving effect to the Certificate Insurance Policy) and which are
reasonably acceptable to the Certificate Insurer.
93
Section 3.04. The Certificate Account.
(a) Not later than the Business Day prior to the related Distribution
Date, the Master Servicer shall direct the Investment Depository to deposit into
the Certificate Account the amounts previously deposited into the Investment
Account (which may include a deposit of Eligible Investments) to which the
Holders of the REMIC I Regular Interests, the Class R-1 Certificateholders and
the Certificate Insurer are entitled or which are necessary for payment of any
Special Primary Insurance Premiums. In addition, not later than the Business Day
prior to the Distribution Date, the Master Servicer shall deposit into the
Certificate Account any Monthly P&I Advances or other payments required to be
made by the Master Servicer pursuant to Section 4.02 of this Agreement and any
Insurance Proceeds or Liquidation Proceeds (including amounts paid by the
Company in respect of any Purchase Obligation) not previously deposited in the
Custodial Accounts for P&I or the Investment Account, and any amounts paid by
the Master Servicer in connection with the exercise of its option to terminate
this Agreement pursuant to Section 9.01 or any other purchase of Mortgage Loans
permitted by this Agreement. The Trustee shall deposit into the Certificate
Account amounts received under the Certificate Insurance Policy in accordance
with Section 3.21(b) hereof.
(b) Funds held in the Certificate Account shall be invested at the
written direction of the Master Servicer in (i) one or more Eligible Investments
which shall in no event mature later than the Business Day prior to the related
Distribution Date (except if such Eligible Investments are obligations of the
Trustee, such Eligible Investments may mature on the Distribution Date), or (ii)
such other instruments as shall be required to maintain the Ratings. The Master
Servicer shall be entitled to receive any gains earned on such Eligible
Investments and shall bear any losses suffered in connection therewith. If the
Trustee has not received such written investment directions from the Master
Servicer, the Trustee shall not invest funds held in the Certificate Account.
The Trustee shall have no liability for any losses on investments of funds held
in the Certificate Account.
Section 3.05. Permitted Withdrawals from the Certificate Account, the
Investment Account and Custodial Accounts for P&I and of Buydown Funds from the
Buydown Fund Accounts.
(a) The Master Servicer is authorized to make withdrawals, from time to
time, from the Investment Account, the Certificate Account or the Custodial
Accounts for P&I established by the Servicers of amounts deposited therein in
respect of the Certificates, as follows:
(i) To reimburse itself or the applicable Servicer for Monthly
P&I Advances made pursuant to Section 4.02 or a Selling and Servicing
Contract, such right to reimbursement pursuant to this paragraph (i)
being limited to amounts received on particular Mortgage Loans
(including, for this purpose, Insurance Proceeds and Liquidation
Proceeds) which represent late recoveries of principal and/or interest
respecting which any such Monthly P&I Advance was made;
(ii) To reimburse itself or the applicable Servicer for
amounts expended by or for the account of the Master Servicer pursuant
to Section 3.09 or amounts expended by such Servicer pursuant to the
Selling and Servicing Contracts in connection with the
94
restoration of property damaged by an Uninsured Cause or in connection
with the liquidation of a Mortgage Loan;
(iii) To pay to itself, with respect to the related Mortgage
Loans, the Master Servicing Fee (net of Compensating Interest reduced
by Payoff Earnings and Payoff Interest) as to which no prior
withdrawals from funds deposited by the Master Servicer have been made;
(iv) To reimburse itself or the applicable Servicer for
advances made with respect to related Mortgage Loans (except for
Mortgage Loans purchased pursuant to a Purchase Obligation or pursuant
to the second sentence of the third paragraph of Section 3.01) which
the Master Servicer has determined to be Nonrecoverable Advances;
(v) To pay to itself reinvestment earnings deposited or earned
in the Investment Account and the Certificate Account to which it is
entitled and to reimburse itself for expenses incurred by and
reimbursable to it pursuant to Section 6.03;
(vi) To deposit to the Investment Account amounts in the
Certificate Account not required to be on deposit therein at the time
of such withdrawal;
(vii) To deposit in the Certificate Account, not later than
the Business Day prior to the related Distribution Date, the amounts
specified in Section 3.04(a);
(viii) To pay on behalf of the Trustee any Special Primary
Insurance Premium payable by the Trustee pursuant to Section 4.04(a);
provided, the Master Servicer shall give written notice thereof to the
Trustee prior to noon New York City time two Business Days prior to the
applicable Distribution Date; and
after making or providing for the above withdrawals
(ix) To clear and terminate the Investment Account and the
Certificate Account following termination of this Agreement pursuant to
Section 9.01.
Since, in connection with withdrawals pursuant to paragraphs (i) and
(ii), the Master Servicer's entitlement thereto is limited to collections or
other recoveries on the related Mortgage Loan, the Master Servicer or the
applicable Servicer shall keep and maintain separate accounting for each
Mortgage Loan, for the purpose of justifying any such withdrawals.
(b) The Master Servicer (or the applicable Servicer, if such Servicer
holds and maintains a Buydown Fund Account) is authorized to make withdrawals,
from time to time, from the Buydown Fund Account or Custodial Account for P&I
established by any Servicer under its supervision of the following amounts of
Buydown Funds:
(i) To deposit each month in the Investment Account the amount
necessary to supplement payments received on Buydown Loans;
(ii) In the event of a Payoff of any Mortgage Loan having a
related Buydown Fund, to apply amounts remaining in Buydown Fund
Accounts to reduce the required
95
amount of such principal Payoff (or, if the Mortgagor has made a
Payoff, to refund such remaining Buydown Fund amounts to the Person
entitled thereto);
(iii) In the event of foreclosure or liquidation of any
Mortgage Loan having a Buydown Fund, to deposit remaining Buydown Fund
amounts in the Investment Account as Liquidation Proceeds; and
(iv) To clear and terminate the portion of any account
representing Buydown Funds following termination of this Agreement
pursuant to Section 9.01;
(c) The Trustee is authorized to make withdrawals from time to time
from the Certificate Account to reimburse itself for advances it has made
pursuant to Section 7.01(a) hereof that it has determined to be Nonrecoverable
Advances.
Section 3.06. Maintenance of Primary Insurance Policies; Collections
Thereunder. The Master Servicer shall use commercially reasonable efforts to
keep, and to cause the Servicers to keep, in full force and effect each Primary
Insurance Policy (except any Special Primary Insurance Policy) required with
respect to a Mortgage Loan, in the manner set forth in the applicable Selling
and Servicing Contract, until no longer required, and the Master Servicer shall
use commercially reasonable efforts to keep in full force and effect each
Special Primary Insurance Policy, if any. Notwithstanding the foregoing, the
Master Servicer shall have no obligation to maintain any Primary Insurance
Policy for a Mortgage Loan for which the outstanding Principal Balance thereof
at any time subsequent to origination was 80% or less of the Appraised Value of
the related Mortgaged Property, unless required by applicable law.
Unless required by applicable law, the Master Servicer shall not cancel
or refuse to renew, or allow any Servicer under its supervision to cancel or
refuse to renew, any Primary Insurance Policy in effect at the date of the
initial issuance of the Certificates that is required to be kept in force
hereunder; provided, however, that neither the Master Servicer nor any Servicer
shall advance funds for the payment of any premium due under (i) any Primary
Insurance Policy (other than a Special Primary Insurance Policy) if it shall
determine that such an advance would be a Nonrecoverable Advance or (ii) any
Special Primary Insurance Policy.
Section 3.07. Maintenance of Hazard Insurance. The Master Servicer
shall cause to be maintained for each Mortgage Loan (other than a Cooperative
Loan) fire insurance with extended coverage in an amount which is not less than
the original principal balance of such Mortgage Loan, except in cases approved
by the Master Servicer in which such amount exceeds the value of the
improvements to the Mortgaged Property. The Master Servicer shall also require
fire insurance with extended coverage in a comparable amount on property
acquired upon foreclosure, or deed in lieu of foreclosure, of any Mortgage Loan
(other than a Cooperative Loan). Any amounts collected under any such policies
(other than amounts to be applied to the restoration or repair of the related
Mortgaged Property) shall be deposited into the Custodial Account for P&I,
subject to withdrawal pursuant to the applicable Selling and Servicing Contract
and pursuant to Section 3.03 and Section 3.05. Any unreimbursed costs incurred
in maintaining any insurance described in this Section 3.07 shall be recoverable
as an advance by the Master Servicer from the Investment Account or the
Certificate Account. Such insurance shall be with insurers approved by the
Master Servicer and Xxxxxx Mae or Xxxxxxx Mac. Other additional
96
insurance may be required of a Mortgagor, in addition to that required pursuant
to such applicable laws and regulations as shall at any time be in force and as
shall require such additional insurance. Where any part of any improvement to
the Mortgaged Property (other than a Mortgaged Property secured by a Cooperative
Loan) is located in a federally designated special flood hazard area and in a
community which participates in the National Flood Insurance Program at the time
of origination of the related Mortgage Loan, the Master Servicer shall cause
flood insurance to be provided. The hazard insurance coverage required by this
Section 3.07 may be met with blanket policies providing protection equivalent to
individual policies otherwise required. The Master Servicer or the applicable
Servicer shall be responsible for paying any deductible amount on any such
blanket policy. The Master Servicer agrees to present, or cause to be presented,
on behalf of and for the benefit of the Trustee and the Certificateholders,
claims under the hazard insurance policy respecting any Mortgage Loan, and in
this regard to take such reasonable actions as shall be necessary to permit
recovery under such policy.
Section 3.08. Enforcement of Due-on-Sale Clauses; Assumption
Agreements. When any Mortgaged Property is about to be conveyed by the
Mortgagor, the Master Servicer shall, to the extent it has knowledge of such
prospective conveyance and prior to the time of the consummation of such
conveyance, exercise on behalf of the Trustee the Trustee's rights to accelerate
the maturity of such Mortgage Loan, to the extent that such acceleration is
permitted by the terms of the related Mortgage Note, under any "due-on-sale"
clause applicable thereto; provided, however, that the Master Servicer shall not
exercise any such right if the due-on-sale clause, in the reasonable belief of
the Master Servicer, is not enforceable under applicable law or if such exercise
would result in non-coverage of any resulting loss that would otherwise be
covered under any insurance policy. In the event the Master Servicer is
prohibited from exercising such right, the Master Servicer is authorized to take
or enter into an assumption and modification agreement from or with the Person
to whom a Mortgaged Property has been or is about to be conveyed, pursuant to
which such Person becomes liable under the Mortgage Note and, unless prohibited
by applicable state law or unless the Mortgage Note contains a provision
allowing a qualified borrower to assume the Mortgage Note, the Mortgagor remains
liable thereon; provided that the Mortgage Loan shall continue to be covered (if
so covered before the Master Servicer enters such agreement) by any related
Primary Insurance Policy. The Master Servicer is also authorized to enter into a
substitution of liability agreement with such Person, pursuant to which the
original Mortgagor is released from liability and such Person is substituted as
Mortgagor and becomes liable under the Mortgage Note. The Master Servicer shall
not enter into any substitution or assumption with respect to a Mortgage Loan if
such substitution or assumption shall (i) both constitute a "significant
modification" effecting an exchange or reissuance of such Mortgage Loan under
the Code (or Treasury regulations promulgated thereunder) and cause the REMICs
to fail to qualify as a REMIC under the REMIC Provisions or (ii) cause the
imposition of any tax on "prohibited transactions" or "contributions" after the
startup day under the REMIC Provisions. The Master Servicer shall notify the
Trustee that any such substitution or assumption agreement has been completed by
forwarding to the Trustee the original copy of such substitution or assumption
agreement and other documents and instruments constituting a part thereof. In
connection with any such assumption or substitution agreement, the terms of the
related Mortgage Note shall not be changed. Any fee collected by the applicable
Servicer for entering into an assumption or substitution of liability agreement
shall be retained by such Servicer as additional servicing compensation.
97
Notwithstanding the foregoing paragraph or any other provision of this
Agreement, the Master Servicer shall not be deemed to be in default, breach or
any other violation of its obligations hereunder by reason of any assumption of
a Mortgage Loan by operation of law or any assumption which the Master Servicer
may be restricted by law from preventing, for any reason whatsoever.
Section 3.09. Realization Upon Defaulted Mortgage Loans. The Master Servicer
shall foreclose upon or otherwise comparably convert, or cause to be foreclosed
upon or comparably converted, the ownership of any Mortgaged Property securing a
Mortgage Loan which comes into and continues in default and as to which no
satisfactory arrangements can be made for collection of delinquent payments
pursuant to Section 3.01. In lieu of such foreclosure or other conversion, and
taking into consideration the desirability of maximizing net Liquidation
Proceeds after taking into account the effect of Insurance Proceeds upon
Liquidation Proceeds, the Master Servicer may, to the extent consistent with
prudent mortgage loan servicing practices, accept a payment of less than the
outstanding Principal Balance of a delinquent Mortgage Loan in full satisfaction
of the indebtedness evidenced by the related Mortgage Note and release the lien
of the related Mortgage upon receipt of such payment. The Master Servicer shall
not foreclose upon or otherwise comparably convert a Mortgaged Property if the
Master Servicer is aware of evidence of toxic waste, other hazardous substances
or other evidence of environmental contamination thereon and the Master Servicer
determines that it would be imprudent to do so. In connection with such
foreclosure or other conversion, the Master Servicer shall cause to be followed
such practices and procedures as it shall deem necessary or advisable and as
shall be normal and usual in general mortgage servicing activities. The
foregoing is subject to the provision that, in the case of damage to a Mortgaged
Property from an Uninsured Cause, the Master Servicer shall not be required to
advance its own funds towards the restoration of the property unless it shall be
determined in the sole judgment of the Master Servicer, (i) that such
restoration will increase the proceeds of liquidation of the Mortgage Loan to
Certificateholders after reimbursement to itself for such expenses, and (ii)
that such expenses will be recoverable to it through Liquidation Proceeds. The
Master Servicer shall be responsible for all other costs and expenses incurred
by it in any such proceedings; provided, however, that it shall be entitled to
reimbursement thereof (as well as its normal servicing compensation) as an
advance. The Master Servicer shall maintain information required for tax
reporting purposes regarding any Mortgaged Property which is abandoned or which
has been foreclosed or otherwise comparably converted. The Master Servicer shall
report such information to the Internal Revenue Service and the Mortgagor in the
manner required by applicable law.
In addition to the foregoing, the Master Servicer shall use its
reasonable efforts to realize upon, or to cause the Servicers to realize upon,
any Additional Collateral for such of the Additional Collateral Loans as come
into and continue in default and as to which no satisfactory arrangements can be
made for collection of delinquent payments pursuant to Section 3.01; provided,
however, that (i) the Master Servicer shall not proceed with respect to such
Additional Collateral in any manner that would impair the ability to recover
against the related Mortgaged Property and (ii) the Master Servicer shall
proceed with any acquisition of the related Mortgaged Property through
foreclosure, deed in lieu of foreclosure or otherwise in a manner that preserves
the ability to apply the proceeds of such Additional Collateral against amounts
owed under the defaulted Additional Collateral Loan.
98
The Master Servicer may enter into one or more special servicing
agreements with a Lowest Class B Owner, subject to each Rating Agency's
acknowledgment that the Ratings of the Certificates in effect immediately prior
to the entering into of such agreement would not be qualified, downgraded or
withdrawn and the Certificates would not be placed on credit review status
(except for possible upgrading) as a result of such agreement. Any such
agreement may contain provisions whereby such Lowest Class B Owner may (a)
instruct the Master Servicer to instruct a Servicer to the extent provided in
the applicable Selling and Servicing Contract to commence or delay foreclosure
proceedings with respect to related delinquent Mortgage Loans, provided that the
Lowest Class B Owner deposits a specified amount of cash with the Master
Servicer that will be available for distribution to Certificateholders if
Liquidation Proceeds are less than they otherwise may have been had the Servicer
acted pursuant to its normal servicing procedures, (b) purchase such delinquent
Mortgage Loans from the REMIC I Trust Fund immediately prior to the commencement
of foreclosure proceedings at a price equal to the aggregate outstanding
Principal Balance of such Mortgage Loans plus accrued interest thereon at the
applicable Mortgage Interest Rate through the last day of the month in which
such Mortgage Loans are purchased and/or (c) assume all of the servicing rights
and obligations with respect to such delinquent Mortgage Loans so long as (i)
the Master Servicer has the right to transfer the servicing rights and
obligations of such Mortgage Loans to another servicer and (ii) such Lowest
Class B Owner will service such Mortgage Loans in accordance with the applicable
Selling and Servicing Contract.
REMIC I shall not acquire any real property (or personal property
incident to such real property) except in connection with a default or imminent
default of a Mortgage Loan. In the event that REMIC I acquires any real property
(or personal property incident to such real property) in connection with a
default or imminent default of a Mortgage Loan, such property shall be disposed
of by the Master Servicer as soon as practicable in a manner that, consistent
with prudent mortgage loan servicing practices, maximizes the net present value
of the recovery to the Trust, but in any event within three years after its
acquisition by the Master Servicer for REMIC I unless the Master Servicer
provides to the Trustee an Opinion of Counsel to the effect that the holding by
REMIC I of such Mortgaged Property subsequent to three years after its
acquisition will not result in the imposition of taxes on "prohibited
transactions" of REMIC I as defined in Section 860F of the Code or under the law
of any state in which real property securing a Mortgage Loan owned by REMIC I is
located or cause REMIC I to fail to qualify as a REMIC for federal income tax
purposes or for state tax purposes under the laws of any state in which real
property securing a Mortgage Loan owned by REMIC I is located at any time that
any Certificates are outstanding. The Master Servicer shall conserve, protect
and operate each such property for the Certificateholders and the Certificate
Insurer solely for the purpose of its prompt disposition and sale in a manner
which does not cause such property to fail to qualify as "foreclosure property"
within the meaning of Section 860G(a)(8) or result in the receipt by the REMIC
of any "income from non-permitted assets" within the meaning of Section
860F(a)(2)(B) of the Code or any "net income from foreclosure property" which is
subject to taxation under the REMIC Provisions. Pursuant to its efforts to sell
such property, the Master Servicer shall either itself or through an agent
selected by the Master Servicer protect and conserve such property in the same
manner and to such extent as is customary in the locality where such property is
located and may, incident to its conservation and protection of the interests of
the Certificateholders and the Certificate Insurer, rent the same, or any part
thereof, as the Master Servicer deems to be in the best interest of the Master
Servicer, the Certificateholders and the Certificate Insurer for the
99
period prior to the sale of such property. Additionally, the Master Servicer
shall perform the tax withholding and shall file information returns with
respect to the receipt of mortgage interests received in a trade or business,
the reports of foreclosures and abandonments of any Mortgaged Property and the
information returns relating to cancellation of indebtedness income with respect
to any Mortgaged Property required by Sections 6050H, 6050J and 6050P,
respectively, of the Code, and deliver to the Trustee an Officers' Certificate
on or before March 31 of each year stating that such reports have been filed.
Such reports shall be in form and substance sufficient to meet the reporting
requirements imposed by Sections 6050H, 6050J and 6050P of the Code.
Notwithstanding any other provision of this Agreement, the Master
Servicer and the Trustee, as applicable, shall comply with all federal
withholding requirements with respect to payments to Certificateholders of
interest or original issue discount that the Master Servicer or the Trustee
reasonably believes are applicable under the Code. The consent of
Certificateholders shall not be required for any such withholding. Without
limiting the foregoing, the Master Servicer agrees that it will not withhold
with respect to payments of interest or original issue discount in the case of a
Certificateholder that has furnished or caused to be furnished an effective Form
W-8 or an acceptable substitute form or a successor form and who is not a "10
percent shareholder" within the meaning of Code Section 871(h)(3)(B) or a
"controlled foreign corporation" described in Code Section 881(c)(3)(C) with
respect to REMIC I, REMIC II or the depositor. In the event the Trustee
withholds any amount from interest or original issue discount payments or
advances thereof to any Certificateholder pursuant to federal withholding
requirements, the Trustee shall indicate the amount withheld to such
Certificateholder.
Section 3.10. Trustee to Cooperate; Release of Mortgage Files. Upon the
Payoff or scheduled maturity of any Mortgage Loan, the Master Servicer shall
cause such final payment to be immediately deposited in the related Custodial
Account for P&I or the Investment Account. Upon notice thereof, the Master
Servicer shall promptly notify the Trustee by a certification (which
certification shall include a statement to the effect that all amounts received
in connection with such payment which are required to be deposited in either
such account have been so deposited) of a Servicing Officer and shall request
delivery to it of the Mortgage File. Upon receipt of such certification and
request, the Trustee shall, not later than the fifth succeeding Business Day,
release the related Mortgage File to the Master Servicer or the applicable
Servicer indicated in such request. With any such Payoff or other final payment,
the Master Servicer is authorized (i) to prepare for and procure from the
trustee or mortgagee under the Mortgage which secured the Mortgage Note a deed
of full reconveyance or other form of satisfaction or assignment of Mortgage and
endorsement of Mortgage Note in connection with a refinancing covering the
Mortgaged Property, which satisfaction, endorsed Mortgage Note or assigning
document shall be delivered by the Master Servicer to the person or persons
entitled thereto, and (ii) with respect to any MERS Loan, to cause the removal
of such Mortgage Loan from registration on the MERS(R) System. No expenses
incurred in connection with such satisfaction or assignment shall be payable to
the Master Servicer by the Trustee or from the Certificate Account, the related
Investment Account or the related Custodial Account for P&I. From time to time
as appropriate for the servicing or foreclosure of any Mortgage Loan, including,
for this purpose, collection under any Primary Insurance Policy, the Trustee
shall, upon request of the Master Servicer and delivery to it of a trust receipt
signed by a Servicing Officer, release not later than the fifth Business Day
following the date of receipt of such request and trust receipt the related
Mortgage File to the Master Servicer or the related Servicer as indicated by the
Master
100
Servicer and shall execute such documents as shall be necessary to the
prosecution of any such proceedings. Such trust receipt shall obligate the
Master Servicer to return the Mortgage File to the Trustee when the need
therefor by the Master Servicer no longer exists, unless the Mortgage Loan shall
be liquidated, in which case, upon receipt of a certificate of a Servicing
Officer similar to that herein above specified, the trust receipt shall be
released by the Trustee to the Master Servicer.
Section 3.11. Compensation to the Master Servicer and the Servicers. As
compensation for its activities hereunder, the Master Servicer shall be entitled
to receive from the Investment Account or the Certificate Account the amounts
provided for by Section 3.05(a)(iii). 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 specifically provided
herein.
As compensation for its activities under the applicable Selling and
Servicing Contract, the applicable Servicer shall be entitled to withhold or
withdraw from the related Custodial Account for P&I the amounts provided for in
such Selling and Servicing Contract. Each Servicer is required to pay all
expenses incurred by it in connection with its servicing activities under its
Selling and Servicing Contract (including payment of premiums for Primary
Insurance Policies, other than Special Primary Insurance Policies, if required)
and shall not be entitled to reimbursement therefor except as specifically
provided in such Selling and Servicing Contract and not inconsistent with this
Agreement.
Section 3.12. Reports to the Trustee; Certificate Account Statement.
Not later than 15 days after each Distribution Date, the Master Servicer shall
forward a statement, certified by a Servicing Officer, to the Trustee and the
Certificate Insurer setting forth the status of the Certificate Account as of
the close of business on such Distribution Date and showing, for the period
covered by such statement, the aggregate of deposits into and withdrawals from
the Certificate Account for each category of deposit specified in Section 3.04
and each category of withdrawal specified in Section 3.05, and stating that all
distributions required by this Agreement have been made (or if any required
distribution has not been made, specifying the nature and amount thereof). The
Trustee shall make available such statements to any Certificateholder upon
request at the expense of the Master Servicer. Such statement shall also, to the
extent available, include information regarding delinquencies on the Mortgage
Loans, indicating the number and aggregate Principal Balance of Mortgage Loans
which are one, two, three or more months delinquent, the number and aggregate
Principal Balance of Mortgage Loans with respect to which foreclosure
proceedings have been initiated and the book value of any Mortgaged Property
acquired by the REMIC I Trust Fund through foreclosure, deed in lieu of
foreclosure or other exercise of the REMIC I Trust Fund's security interest in
the Mortgaged Property.
Section 3.13. Annual Statement as to Compliance. The Master Servicer
shall deliver to the Trustee and the Certificate Insurer, on or before April 30
of each year, beginning with the first April 30 succeeding the Cut-Off Date by
at least six months, an Officer's Certificate stating as to the signer thereof,
that (i) a review of the activities of the Master Servicer during the preceding
calendar year and performance under this Agreement has been made under such
officer's supervision, and (ii) to the best of such officer's knowledge, based
on such review, the Master Servicer has fulfilled all its obligations under this
Agreement throughout such year, or, if
101
there has been a default in the fulfillment of any such obligation, specifying
each such default known to such officer and the nature and status thereof.
Copies of such statement shall be provided by the Master Servicer to
Certificateholders upon request or by the Trustee (solely to the extent that
such copies are available to the Trustee) at the expense of the Master Servicer,
should the Master Servicer fail to so provide such copies.
Section 3.14. Access to Certain Documentation and Information Regarding
the Mortgage Loans. In the event that the Certificates are legal for investment
by federally-insured savings associations, the Master Servicer shall provide to
the OTS, the FDIC and the supervisory agents and examiners of the OTS and the
FDIC access to the documentation regarding the related Mortgage Loans required
by applicable regulations of the OTS or the FDIC, as applicable, and shall in
any event provide such access to the documentation regarding such Mortgage Loans
to the Trustee and its representatives, such access being afforded without
charge, but only upon reasonable request and during normal business hours at the
offices of the Master Servicer designated by it.
Section 3.15. Annual Independent Public Accountants' Servicing Report.
On or before April 30 of each year, beginning with the first April 30 succeeding
the Cut-Off Date by at least six months, the Master Servicer, at its expense,
shall cause a firm of independent public accountants to furnish a statement to
the Trustee and the Certificate Insurer to the effect that, in connection with
the firm's examination of the financial statements as of the previous December
31 of the Master Servicer's parent corporation (which shall include a limited
examination of the Master Servicer's financial statements), nothing came to
their attention that indicated that the Master Servicer was not in compliance
with Section 3.02, Section 3.03, Section 3.04, Section 3.05, Section 3.11,
Section 3.12 and Section 3.13 of this Agreement, except for (i) such exceptions
as such firm believes to be immaterial, and (ii) such other exceptions as are
set forth in such statement.
Section 3.16. [Reserved.]
Section 3.17. Maintenance of the Class II-A-24 Reserve Fund. On or
prior to the Closing Date, the Master Servicer shall cause to be established and
maintained the Class II-A-24 Reserve Fund, into which an amount equal to $15,000
shall be contributed by the Underwriter, to provide coverage with respect to any
Class II-A-24 Covered Interest Shortfall Amount. For each Distribution Date, so
long as funds remain on deposit in the Class II-A-24 Reserve Fund, the Master
Servicer shall calculate the Class II-A-24 Covered Interest Shortfall Amount for
such Distribution Date, and shall notify the Trustee and the Certificate Insurer
by noon New York City time two Business Days prior to the Distribution Date of
such amount. On each Distribution Date, the Trustee shall then withdraw from the
Class II-A-24 Reserve Fund, to the extent funds are available therein, the Class
II-A-24 Covered Interest Shortfall Amount, and deposit such amount in the
Certificate Account for payment to the Class II-A-24 Certificateholders pursuant
to Section 4.04(a) (and shall be deemed to have distributed such amount to the
Class II-A-24-L Regular Interest pursuant to Section 4.01).
The Trustee shall withdraw from the Class II-A-24 Reserve Fund and pay
to the Underwriter any amounts remaining in the Class II-A-24 Reserve Fund on
the Distribution Date on which the Class II-A-24 Principal Balance has been
reduced to zero.
102
Amounts on deposit in the Class II-A-24 Reserve Fund shall not be
invested and shall not be held in an interest-bearing account.
To the extent that it constitutes a "reserve fund" for purposes of the
REMIC Provisions, the Class II-A-24 Reserve Fund established hereunder shall be
an "outside reserve fund" as defined in Treasury Regulation 1.860G-2(h), and in
that regard (i) such fund shall be an outside reserve fund and not an asset of
either REMIC, (ii) such fund shall be owned for federal tax purposes by the
Underwriter, and the Underwriter shall report all amounts of income, deduction,
gain or loss accruing therefrom, and (iii) amounts transferred by the REMIC to
the fund shall be treated as distributed by the REMIC to the Underwriter.
Section 3.18. Surety Bonds. In connection with its activities
hereunder, the Master Servicer agrees to present, on behalf of the Trustee and
the Certificateholders, claims to the Surety under the Surety Bonds, and, in
this regard, to take such commercially reasonable actions as shall be necessary
to permit recovery under the Surety Bonds; provided, however, that nothing in
this Section 3.18 shall require the Master Servicer to make a Nonrecoverable
Advance. Promptly after the Closing Date, the Master Servicer shall make
application to the Surety to provide the Trustee with written confirmation from
the Surety that a beneficial interest in each Surety Bond with respect to the
Additional Collateral Loans has been assigned to the Trustee.
Section 3.19. [Reserved.]
Section 3.20. Assumption or Termination of Selling and Servicing
Contracts by Trustee. In the event the Master Servicer, or any successor Master
Servicer, shall for any reason no longer be the Master Servicer (including by
reason of an Event of Default), the Trustee as trustee hereunder or its designee
shall thereupon assume all of the rights and obligations of the Master Servicer
under the Selling and Servicing Contracts with respect to the related Mortgage
Loans unless the Trustee elects to terminate the Selling and Servicing Contracts
with respect to such Mortgage Loans in accordance with the terms thereof. The
Trustee, its designee or the successor servicer for the Trustee shall be deemed
to have assumed all of the Master Servicer's interest therein with respect to
the related Mortgage Loans and to have replaced the Master Servicer as a party
to the Selling and Servicing Contracts to the same extent as if the rights and
duties under the Selling and Servicing Contracts relating to such Mortgage Loans
had been assigned to the assuming party, except that the Master Servicer shall
not thereby be relieved of any liability or obligations under the Selling and
Servicing Contracts with respect to the Master Servicer's duties to be performed
prior to its termination hereunder.
The Master Servicer at its expense shall, upon request of the Trustee,
deliver to the assuming party all documents and records relating to the Selling
and Servicing Contracts and the Mortgage Loans then being master serviced by the
Master Servicer and an accounting of amounts collected and held by the Master
Servicer and otherwise use its best efforts to effect the orderly and efficient
transfer of the rights and duties under the related Selling and Servicing
Contracts relating to such Mortgage Loans to the assuming party.
Section 3.21. Maintenance of the Certificate Insurance Policy;
Collections Thereunder.
103
(a) Prior to noon New York City time on the third Business Day prior to
each Distribution Date, the Master Servicer shall determine if a Deficiency
Amount for such Distribution Date exists and, if so, shall immediately notify
the Trustee in writing of such amount; the Trustee, upon receipt of such notice,
shall complete the Notice and submit such Notice in accordance with the
Certificate Insurance Policy to the Certificate Insurer no later than noon, New
York City time, on the second Business Day immediately preceding such
Distribution Date as a claim for an Insured Amount in an amount equal to such
Deficiency Amount. If at any time the Trustee receives a certified copy of an
order of an appropriate court that any payment of principal or interest on the
Insured Certificates constitutes a Preference Amount, the Trustee, at the
expense of the Trust, shall take the actions required on its part by the terms
of the Certificate Insurance Policy to obtain payment of such Preference Amount
by the Certificate Insurer.
(b) Upon receipt of an Insured Amount from the Certificate Insurer on
behalf of the Holders of the Insured Certificates, the Trustee shall deposit
such Insured Amount in the Certificate Account. All such amounts on deposit in
the Certificate Account shall remain uninvested. The Trustee shall include on
each Distribution Date any Insured Amounts received by it from or on behalf of
the Certificate Insurer for such Distribution Date (i) in the amount distributed
to the Holders of the Insured Certificates pursuant to Section 4.04 and (ii) in
the amount deemed to have been distributed to Class II-A-24-L Regular Interest
and deposited for its benefit into the Certificate Account pursuant to Section
4.01. If on any Distribution Date the Trustee or the Master Servicer determines
(the Master Servicer having notified the Trustee of such determination) that the
Certificate Insurer has paid more under the Certificate Insurance Policy than is
required by the terms thereof, the Trustee shall promptly return the excess
amount to the Certificate Insurer.
(c) The Trustee shall (i) receive as attorney-in-fact of the Holders of
the Insured Certificates any Insured Amount delivered to it by the Certificate
Insurer for payment to such Holders and (ii) distribute such Insured Amount to
such Holders as set forth in subsection 3.21(b) above. Insured Amounts disbursed
by the Trustee from proceeds of the Certificate Insurance Policy shall not be
considered payment by the Trust Fund with respect to the Insured Certificates,
nor shall such disbursement of Insured Amounts discharge the obligations of the
Trust Fund with respect to the amounts thereof, and the Certificate Insurer
shall become owner of such amounts to the extent covered by such Insured Amounts
as the deemed assignee of such Holders. The Trustee hereby agrees on behalf of
the Holders of the Insured Certificates (and each such Holder, by its acceptance
of its Insured Certificates, hereby agrees) for the benefit of the Certificate
Insurer that, to the extent the Certificate Insurer pays any Insured Amount,
either directly or indirectly (as by paying through the Trustee), to the Holder
of a Insured Certificate, the Certificate Insurer will be entitled to be
subrogated to any rights of such Holder to receive (pursuant to the definitions
of "REMIC I Distribution Amount" and "REMIC II Distribution Amount") the amounts
for which such Insured Amount was paid, to the extent of such payment, and will
be entitled to receive the Certificate Insurer Reimbursement Amount as set forth
in Section 4.01 and the definition of "REMIC I Distribution Amount."
(d) On each Distribution Date prior to making any distributions on such
Distribution Date pursuant to Section 4.01, the Trustee shall withdraw from the
Certificate Account and pay
104
to the Certificate Insurer the Certificate Insurer Premium as set forth in the
statement delivered to the Trustee pursuant to Section 4.02(b).
(e) At the end of the Term of the Policy (as defined in the Certificate
Insurance Policy), the Trustee shall return the Certificate Insurance Policy to
the Certificate Insurer for cancellation.
Section 3.22. Maintenance of the Rounding Accounts; Collections
Thereunder. On or prior to the Closing Date, the Trustee shall establish the
Rounding Accounts, and the Underwriter shall deposit $999.99 in each such
Rounding Account. The Master Servicer shall maintain such accounts to provide,
if needed, the applicable Rounding Amount on any Distribution Date. For each
Class of Special Retail Certificates, on the first Distribution Date with
respect to which the Master Servicer determines that principal is required to be
distributed to such Class pursuant to Section 4.04(a)(ii), and the aggregate
amount of such principal is not an amount equal to an integral multiple of
$1,000, the Master Servicer shall notify the Trustee by Noon New York City time
two Business Days prior to such Distribution Date of the applicable Rounding
Amount, and the Trustee shall withdraw such Rounding Amount from the applicable
Rounding Account. On each succeeding Distribution Date, prior to the earlier of
(i) the Group II Credit Support Depletion Date and (ii) the date on which any
loss is allocated to such Class of Special Retail Certificates or its
Corresponding Class by Pro Rata Allocation, with respect to which the Master
Servicer determines that principal is required to be distributed to such Class
pursuant to Section 4.04(a)(ii), the aggregate amount of such principal will be
applied first to repay to the applicable Rounding Account any funds withdrawn
from such Rounding Account on prior Distribution Dates which have not been
repaid. If the remainder of such aggregate amount of principal is not an amount
equal to an integral multiple of $1,000, the Master Servicer shall notify the
Trustee by Noon New York City time two Business Days prior to such Distribution
Date of the applicable Rounding Amount, and the Trustee shall withdraw from the
applicable Rounding Account, to the extent funds are available therein, the
amount so notified by the Master Servicer.
Any amounts withdrawn by the Trustee from any Rounding Account shall be
deposited in the Certificate Account for distribution to the Holders of the
applicable Class of Special Retail Certificates as described in the immediately
preceding paragraph (and shall be deemed to have been distributed to the
Corresponding Class of each such Class of Special Retail Certificates, as
applicable, and deposited for its benefit into the Certificate Account in
accordance with Section 4.01(ii)).
Amounts on deposit in the Rounding Accounts shall not be invested.
On the first Distribution Date after the earliest of (i) the Group II
Credit Support Depletion Date, (ii) the date on which any loss is allocated to
the Special Retail Certificates or their Corresponding Classes by Pro Rata
Allocation and (iii) the date on which the applicable Class Principal Balance of
such Class of Special Retail Certificates has been reduced to zero, the Trustee
shall remit any amounts then remaining on deposit in the applicable Rounding
Account or Accounts to the Holders of the Class R-2 Certificates.
105
ARTICLE IV
Payments to Certificateholders; Payment of Expenses
Section 4.01. Distributions to Holders of REMIC I Regular Interests, Class R-1
Certificateholders and Certificate Insurer. On each Distribution Date, the
Trustee (or any duly appointed paying agent) (i) shall withdraw from the
Certificate Account the Certificate Insurer Premium payable on such Distribution
Date pursuant to Section 3.21(d) and pay such amount to the Certificate Insurer,
(ii) shall be deemed to have distributed from the Certificate Account (A) the
REMIC I Distribution Amount (other than any Certificate Insurer Reimbursement
Amount) to the Holders of the REMIC I Regular Interests, (B) the applicable
Rounding Amount or Amounts, if any, to the holders of the Corresponding Class of
each Class of Special Retail Certificates and (C) the Class II-A-24 Covered
Interest Shortfall Amount and any Insured Amount received by the Trustee for
such Distribution Date to the Holder of the Class II-A-24-L Regular Interest,
and to have deposited such amounts for their benefit into the Certificate
Account and (iii) from the Certificate Account shall distribute (A) to the
Certificate Insurer any Certificate Insurer Reimbursement Amount to be
distributed to the Certificate Insurer pursuant to the definition of "REMIC I
Distribution Amount" for such Distribution Date and (B) to the Class R-1
Certificateholders, the sum of (a) the Excess Liquidation Proceeds and (b) the
amounts to be distributed to the Class R-1 Certificateholders pursuant to the
definition of "REMIC I Distribution Amount" for such Distribution Date, in the
case of each of clause (iii)(A) and (iii)(B), in accordance with the written
statement received from the Master Servicer pursuant to Section 4.02(b). Amounts
distributed to the Class R-1 Certificateholders pursuant to clause (iii) above
shall be distributed by wire transfer in immediately available funds for the
account of each Class R-1 Certificateholder, or by any other means of payment
acceptable to each Class R-1 Certificateholder of record on the immediately
preceding Record Date (other than as provided in Section 9.01 respecting the
final distribution), as specified by each such Certificateholder and at the
address of such Holder appearing in the Certificate Register. Amounts
distributed to the Certificate Insurer pursuant to clause (i) or (iii) above
shall be distributed by wire transfer in immediately available funds to such
account as the Certificate Insurer shall designate in writing to the Trustee
from time to time at least one Business Day before any Distribution Date or, at
the election of the Certificate Insurer, by check sent by first class mail to
such address as the Certificate Insurer shall designate in writing to the
Trustee from time to time at least one Business Day before any Distribution
Date. Notwithstanding any other provision of this Agreement, no actual
distributions pursuant to clause (ii) of this Section 4.01 shall be made on
account of the deemed distributions described in this paragraph except in the
event of a liquidation of REMIC II and not REMIC I.
Section 4.02. Advances by the Master Servicer; Distribution Reports to
the Trustee.
(a) To the extent described below, the Master Servicer is obligated to
advance its own funds to the Certificate Account to cover any shortfall between
(i) payments scheduled to be received in respect of Mortgage Loans, and (ii) the
amounts actually deposited in the Certificate Account on account of such
payments; provided that, with respect to any Balloon Loan that is delinquent on
its maturity date, the Master Servicer will not be required to advance the
related balloon payment but will be required to continue to make advances in
accordance with this Section 4.02 with respect to such Balloon Loan in an amount
equal to one month's interest on the
106
unpaid principal balance at the applicable Pass-Through Rate for each
Distribution Date to the extent the Master Servicer deems such amount to be
recoverable. The Master Servicer's obligation to make any advance or advances
described in this Section 4.02 is effective only to the extent that such advance
is, in the good faith judgment of the Master Servicer made on or before the
second Business Day prior to each Distribution Date, reimbursable from Insurance
Proceeds or Liquidation Proceeds of the related Mortgage Loans or recoverable as
late Monthly Payments with respect to the related Mortgage Loans or otherwise.
Prior to the close of business on the second Business Day prior to each
Distribution Date, the Master Servicer shall determine whether or not it will
make a Monthly P&I Advance on the Business Day prior to such Distribution Date
(in the event that the applicable Servicer fails to make such advances) and
shall furnish a written statement to the Trustee, the Certificate Insurer, the
Paying Agent, if any, and to any Certificateholder requesting the same, setting
forth the aggregate amount to be advanced on account of principal and interest
in respect of the Mortgage Loans, stated separately.
In the event that the Master Servicer shall be required to make a
Monthly P&I Advance, it shall on the Business Day prior to the related
Distribution Date either (i) deposit in the Certificate Account an amount equal
to such Monthly P&I Advance, (ii) make an appropriate entry in the records of
the Certificate Account that funds in such account being held for future
distribution or withdrawal have been, as permitted by this Section 4.02, used by
the Master Servicer to make such Monthly P&I Advance, or (iii) make advances in
the form of any combination of (i) and (ii) aggregating the amount of such
Monthly P&I Advance. Any funds being held for future distribution to
Certificateholders and so used shall be replaced by the Master Servicer by
deposit in the Certificate Account on the Business Day immediately preceding any
future Distribution Date to the extent that funds in the Certificate Account on
such Distribution Date with respect to the Mortgage Loans shall be less than
payments to Certificateholders required to be made on such date with respect to
the Mortgage Loans. Under each Selling and Servicing Contract, the Master
Servicer is entitled to receive from the Custodial Accounts for P&I established
by the Servicers amounts received by the applicable Servicers on particular
Mortgage Loans as late payments of principal and interest or as Liquidation or
Insurance Proceeds and respecting which the Master Servicer has made an
unreimbursed advance of principal and interest. The Master Servicer is also
entitled to receive other amounts from the related Custodial Accounts for P&I
established by the Servicers to reimburse itself for prior Nonrecoverable
Advances respecting Mortgage Loans serviced by such Servicers. The Master
Servicer shall deposit these amounts in the Investment Account prior to
withdrawal pursuant to Section 3.05.
In accordance with Section 3.05, Monthly P&I Advances are reimbursable
to the Master Servicer from cash in the Investment Account or the Certificate
Account to the extent that the Master Servicer shall determine that any such
advances previously made are Nonrecoverable Advances pursuant to Section 4.03.
(b) Prior to noon New York City time two Business Days prior to each
Distribution Date, the Master Servicer shall provide (x) the Trustee, (y) the
Certificate Insurer and (z) the Company (if the Company is no longer acting as
Master Servicer) with a statement in writing of (1) the amount of the
Certificate Insurer Premium; (2) the amount of the Certificate Insurer
107
Reimbursement Amount, if any; (3) the Deficiency Amount, if any, to be paid by
the Certificate Insurer; (4) the Class II-A-24 Covered Interest Shortfall
Amount, if any, to be withdrawn from the Class II-A-24 Reserve Fund pursuant to
Section 3.17; (5) the Rounding Amount or Amounts, if any, to be withdrawn from
the Rounding Accounts pursuant to Section 3.22; (6) the amounts to be applied to
repay any funds withdrawn from the Rounding Accounts on prior Distribution Dates
pursuant to Section 3.22; (7) the amount, as applicable, of (i) interest, (ii)
the interest portion, if any, of Realized Losses, (iii) Uncompensated Interest
Shortfall, (iv) scheduled principal, (v) Principal Prepayments, (vi) the
principal portion of Realized Losses, (vii) the Residual Distribution Amount and
(viii) the Excess Liquidation Proceeds to be distributed to each Class of
Certificates on such Distribution Date (such amounts to be determined in
accordance with the definitions of "REMIC I Distribution Amount" and "REMIC II
Distribution Amount," Section 4.01 and Section 4.04 hereof and other related
definitions set forth in Article I hereof); (8) the applicable Class Principal
Balance after giving effect to such distributions; and (9) the amount of any
Special Primary Insurance Premium payable on such Distribution Date.
Section 4.03. Nonrecoverable Advances. Any advance previously made by a
Servicer pursuant to its Selling and Servicing Contract with respect to a
Mortgage Loan or by the Master Servicer that the Master Servicer shall determine
in its good faith judgment not to be ultimately recoverable from Insurance
Proceeds or Liquidation Proceeds or otherwise with respect to such Mortgage Loan
or recoverable as late Monthly Payments with respect to such Mortgage Loan shall
be a Nonrecoverable Advance. The determination by the Master Servicer that it or
the applicable Servicer has made a Nonrecoverable Advance or that any advance
would constitute a Nonrecoverable Advance, shall be evidenced by an Officer's
Certificate of the Master Servicer delivered to the Trustee and the Certificate
Insurer on the Determination Date and detailing the reasons for such
determination. Notwithstanding any other provision of this Agreement, any
insurance policy relating to the Mortgage Loans, or any other agreement relating
to the Mortgage Loans to which the Company or the Master Servicer is a party,
(a) the Master Servicer and each Servicer shall not be obligated to, and shall
not, make any advance that, after reasonable inquiry and in its sole discretion,
the Master Servicer or such Servicer shall determine would be a Nonrecoverable
Advance, and (b) the Master Servicer and each Servicer shall be entitled to
reimbursement for any advance as provided in Section 3.05(a)(i), (ii) and (iv)
of this Agreement.
Section 4.04. Distributions to Certificateholders; Payment of Special
Primary Insurance Premiums.
(a) On each Distribution Date, the Trustee (or any duly appointed
paying agent) shall (i) subject to Section 3.05(a)(viii), withdraw from the
Certificate Account any Special Primary Insurance Premium payable on such
Distribution Date and pay such amount to the insurer under the applicable
Special Primary Insurance Policy and (ii) withdraw from the Certificate Account
(A) the REMIC II Available Distribution Amount for such Distribution Date and
distribute, from the amount so withdrawn, to the extent of the REMIC II
Available Distribution Amount, the REMIC II Distribution Amount to the
Certificateholders (other than the Class R-1 Certificateholders) (provided that
any portion of such amount distributable to any Class of Special Retail
Certificates shall be used first to pay any amount payable to the applicable
Rounding Account pursuant to Section 3.22) and to the Certificate Insurer in
respect of the Certificate Insurer's subrogation to certain rights to payment
due to the Holders of the Insured Certificates as set forth in Section 3.21, (B)
the applicable Rounding Amount or Amounts, if any,
108
deposited therein for distribution on such date pursuant to Section 3.22 and
distribute the amounts so withdrawn to the applicable Class of Special Retail
Certificates in accordance with such Section 3.22, (C) the Class II-A-24 Covered
Interest Shortfall Amount, if any, deposited therein for distribution on such
date pursuant to Section 3.17 and distribute such amount to the Holders of the
Insured Certificates and (D) any Insured Amount received by the Trustee for such
Distribution Date and distribute such amount to the Holders of the Insured
Certificates, all in accordance with the written statement received from the
Master Servicer pursuant to Section 4.02(b). Any Special Primary Insurance
Premiums distributed pursuant to clause (i) above shall be distributed by means
of payment acceptable to the insurer under the respective Special Primary
Insurance Policy. Amounts distributed to the Certificateholders pursuant to
clause (ii) above shall be distributed by wire transfer in immediately available
funds for the account of, or by check mailed to, each such Certificateholder of
record on the immediately preceding Record Date (other than as provided in
Section 9.01 respecting the final distribution), as specified by each such
Certificateholder and at the address of such Holder appearing in the Certificate
Register. Amounts distributed to the Certificate Insurer pursuant to clause (ii)
above shall be distributed by wire transfer in immediately available funds to
such account as the Certificate Insurer shall designate in writing to the
Trustee from time to time at least one Business Day before any Distribution Date
or, at the election of the Certificate Insurer, by check sent by first class
mail to such address as the Certificate Insurer shall designate in writing to
the Trustee from time to time at least one Business Day before any Distribution
Date.
(b) All reductions in the Certificate Principal Balance of a
Certificate effected by distributions of principal and all allocations of
Realized Losses made on any Distribution Date shall be binding upon all Holders
of such Certificate and of any Certificate issued upon the registration of
transfer or exchange therefor or in lieu thereof, whether or not such
distribution is noted on such Certificate. The final distribution of principal
of each Certificate (and the final distribution upon the Class R-1 and Class R-2
Certificates upon the termination of REMIC I and REMIC II) shall be payable in
the manner provided above only upon presentation and surrender thereof on or
after the Distribution Date therefor at the office or agency of the Certificate
Registrar specified in the notice delivered pursuant to Section 4.04(c)(ii) and
Section 9.01(b).
(c) Whenever, on the basis of Curtailments, Payoffs, proceeds of the
Certificate Insurance Policy and Monthly Payments on the Mortgage Loans and
Insurance Proceeds and Liquidation Proceeds received and expected to be received
during the Payoff Period, the Master Servicer has notified the Trustee that it
believes that the entire remaining unpaid Class Principal Balance of any Class
of Certificates will become distributable on the next Distribution Date, the
Trustee shall, no later than the 18th day of the month of such Distribution
Date, mail or cause to be mailed to each Person in whose name a Certificate to
be so retired is registered at the close of business on the Record Date and to
the Rating Agencies and the Certificate Insurer a notice to the effect that:
(i) it is expected that funds sufficient to make such final
distribution will be available in the Certificate Account on such
Distribution Date, and
(ii) if such funds are available, (A) such final distribution
will be payable on such Distribution Date, but only upon presentation
and surrender of such Certificate at the office or agency of the
Certificate Registrar maintained for such purpose (the address
109
of which shall be set forth in such notice), and (B) no interest shall
accrue on such Certificate after such Distribution Date.
Section 4.05. Statements to Certificateholders. With each distribution
from the Certificate Account on a Distribution Date, the Trustee shall send to
each Rating Agency and shall make available to each Certificateholder the
statement required by Section 4.02(b). The Trustee may make available such
statement and certain other information, including, without limitation,
information required to be provided by the Trustee pursuant to Sections 3.12 and
3.13, to Certificateholders through the Trustee's Corporate Trust home page on
the world wide web. Such web page is currently located at
"xxxxxxxxxxxxxx.xxxxxxxxxxx.xxx." Mortgage-Backed Securities information is
currently available by clicking the "Bondholder Reporting" button and selecting
the appropriate transaction. The location of such web page and the procedures
used therein are subject to change from time to time at the Trustee's
discretion.
Upon request by any Certificateholder or Rating Agency, the Certificate
Insurer or the Trustee, the Master Servicer shall forward to such
Certificateholder or Rating Agency, the Certificate Insurer and the Trustee and
the Company (if the Company is no longer acting as Master Servicer) an
additional report which sets forth with respect to the Mortgage Loans:
(a) The number and aggregate Principal Balance of the Mortgage
Loans delinquent one, two and three months or more, in each case, by
Loan Group;
(b) The (i) number and aggregate Principal Balance of Mortgage
Loans with respect to which foreclosure proceedings have been
initiated, and (ii) the number and aggregate book value of Mortgaged
Properties acquired through foreclosure, deed in lieu of foreclosure or
other exercise of rights respecting the Trustee's security interest in
the Mortgage Loans, in each case, by Loan Group;
(c) The amount of the Special Hazard Coverage for Loan Group I
and the amount of the Special Hazard Coverage for Loan Group II
available to the Senior Certificates remaining as of the close of
business on the applicable Determination Date;
(d) The amount of the Bankruptcy Coverage for Loan Group I and
the amount of the Bankruptcy Coverage for Loan Group II available to
the Senior Certificates remaining as of the close of business on the
applicable Determination Date;
(e) The amount of the Fraud Coverage for Loan Group I and the
amount of the Fraud Coverage for Loan Group II available to the Senior
Certificates remaining as of the close of business on the applicable
Determination Date;
(f) The amount of the Certificate Insurer Reimbursement Amount
as of the applicable Determination Date and the amount of any
Preference Amount and any amount payable to the Certificate Insurer
pursuant to its subrogation rights;
(g) The cumulative amount of Realized Losses incurred in
respect of each Loan Group allocated to the related Certificates since
the Cut-Off Date;
(h) The amount remaining on deposit in the Class II-A-24
Reserve Fund.
110
Upon request by any Certificateholder, the Master Servicer, as soon as
reasonably practicable, shall provide the requesting Certificateholder with such
information as is necessary and appropriate, in the Master Servicer's sole
discretion, for purposes of satisfying applicable reporting requirements under
Rule 144A of the Securities Act.
The Company may make available any reports, statements or other
information to Certificateholders through the Company's home page on the world
wide web. As of the Closing Date, such web page is located at "xxx.xxxxxxx.xxx"
and information is available by clicking on "Investor Information."
Section 4.06. Principal Distributions on the Special Retail Certificates. With
respect to each Class of Special Retail Certificates, prior to the earlier of
(i) the Group II Credit Support Depletion Date and (ii) the date on which any
loss is allocated to such Class or its Corresponding Class by Pro Rata
Allocation, distributions in reduction of the Class Principal Balance of such
Class will be made in integral multiples of $1,000 at the request of the
appropriate representatives of Deceased Holders of Certificates of such Class
and at the request of Living Holders of Certificates of such Class or by
mandatory distributions, pursuant to Section 4.06(a) and Section 4.06(d). On and
after the earlier of (i) the Group II Credit Support Depletion Date and (ii) the
date on which any loss is allocated to such Class or its Corresponding Class by
Pro Rata Allocation, distributions in reduction of the Class Principal Balance
of such Class will be made on a pro rata basis pursuant to Section 4.06(e).
(a) On each Distribution Date (prior to the earlier of (i) the Group II
Credit Support Depletion Date and (ii) the date on which any loss is allocated
to the Special Retail Certificates or their Corresponding Classes by Pro Rata
Allocation) on which principal distributions to a Class of Special Retail
Certificates are made, such distributions will be made in the following
priority:
(i) first, to requesting Deceased Holders, in the order in
which such requests are received by DTC, but not exceeding an aggregate
amount of $100,000 for each requesting Deceased Holder; and
(ii) second, to requesting Living Holders, in the order in
which such requests are received by DTC, but not exceeding an aggregate
amount of $10,000 for each requesting Living Holder.
Thereafter, distributions will be made, with respect to such Class of Special
Retail Certificates, as provided in clauses (i) and (ii) above up to a second
$100,000 and $10,000, respectively. This sequence of priorities will be repeated
until all requests for principal distributions by Deceased Holders and Living
Holders of such Class have been honored, to the extent of amounts available for
principal distributions to such Class.
All requests for principal distributions to Special Retail Certificates
will be accepted in accordance with the provisions set forth in Section 4.06(c).
Requests for principal distributions that are received by the Trustee after the
related Record Date and requests for principal distributions received in a
timely manner but not accepted with respect to any Distribution Date, will be
treated as requests for principal distributions to Special Retail Certificates
on the next
111
succeeding Distribution Date, and each succeeding Distribution Date thereafter,
until each such request is accepted or is withdrawn as provided in Section
4.06(c). Such requests as are not so withdrawn shall retain their order of
priority without the need for any further action on the part of the appropriate
Holder of the related Special Retail Certificate, all in accordance with the
procedures of DTC and the Trustee. Upon the transfer of beneficial ownership of
any Special Retail Certificate, any distribution request previously submitted
with respect to such Certificate will be deemed to have been withdrawn only upon
the receipt by the Trustee on or before the Record Date for such Distribution
Date of notification of such withdrawal in the manner set forth in Section
4.06(c) using a form required by DTC.
Distributions in reduction of the Class Principal Balance of any Class
of Special Retail Certificates will be applied in an amount equal to the portion
of the REMIC II Available Distribution Amount allocable to such Class pursuant
to Section 4.04, plus any amounts available for distribution from the applicable
Rounding Account established as provided in Section 3.22, provided that the
aggregate distribution of principal to such Class on any Distribution Date shall
be made in an integral multiple of $1,000.
To the extent that the portion of the Group II Senior Principal
Distribution Amount allocable to the Corresponding Class of any Class of Special
Retail Certificates on any Distribution Date exceeds the aggregate Certificate
Principal Balance of Special Retail Certificates of such Class with respect to
which principal distribution requests, as set forth above, have been received,
principal distributions in reduction of the Class Principal Balance of such
Class of Special Retail Certificates will be made by mandatory distribution
pursuant to Section 4.06(d).
(b) A Special Retail Certificate shall be deemed to be held by a
Deceased Holder for purposes of this Section 4.06 if the death of the Holder
thereof is deemed to have occurred. Special Retail Certificates beneficially
owned by tenants by the entirety, joint tenants or tenants in common will be
considered to be beneficially owned by a single owner. The death of a tenant by
the entirety, joint tenant or tenant in common will be deemed to be the death of
the Holder, and the Special Retail Certificates so beneficially owned will be
eligible for priority with respect to principal distributions, subject to the
limitations stated above. Special Retail Certificates beneficially owned by a
trust will be considered to be beneficially owned by each beneficiary of the
trust to the extent of such beneficiary's beneficial interest therein, but in no
event will a trust's beneficiaries collectively be deemed to be Holders of a
number of Special Retail Certificates greater than the number of Special Retail
Certificates of which such trust is the owner. The death of a beneficiary of a
trust will be deemed to be the death of a Holder of the Special Retail
Certificates beneficially owned by the trust to the extent of such beneficiary's
beneficial interest in such trust. The death of an individual who was a tenant
by the entirety, joint tenant or tenant in common in a tenancy which is the
beneficiary of a trust will be deemed to be the death of the beneficiary of such
trust. The death of a person who, during his or her lifetime, was entitled to
substantially all of the beneficial ownership interests in a Special Retail
Certificate will be deemed to be the death of the Holder of such Special Retail
Certificate regardless of the registration of ownership, if such beneficial
ownership interest can be established to the satisfaction of the Trustee. Such
beneficial interest will be deemed to exist in typical cases of street name or
nominee ownership, ownership by a trustee, ownership under the Uniform Gifts to
Minors Act and community property or other joint ownership arrangements between
a husband
112
and wife. Beneficial interest shall include the power to sell, transfer or
otherwise dispose of a Special Retail Certificate and the right to receive the
proceeds therefrom, as well as interest and principal distributions, as
applicable, payable with respect thereto. The Trustee may rely entirely upon
documentation delivered to it in establishing beneficial ownership interests in
Special Retail Certificates. The Trustee shall not be under any duty to
determine independently the occurrence of the death of any deceased Holder. The
Trustee may rely entirely upon documentation delivered to it pursuant to Section
4.06(c) in establishing the eligibility of any Holder to receive the priority
accorded Deceased Holders in Section 4.06(a).
(c) Requests for principal distributions to any Special Retail
Certificate must be made by delivering a written request therefor to the DTC
Participant or Indirect DTC Participant that maintains the account evidencing
such Holder's interest in such Certificate. In the case of a request on behalf
of a Deceased Holder, appropriate evidence of death and any tax waivers are
required to be forwarded to the Trustee under separate cover. The DTC
Participant should in turn make the request of DTC (or, in the case of an
Indirect DTC Participant, such Indirect DTC Participant must notify the related
DTC Participant of such request, which DTC Participant should make the request
of DTC) on a form required by DTC and provided to the DTC Participant. Upon
receipt of such request, DTC will date and time stamp such request and forward
such request to the Trustee. DTC may establish such procedures as it deems fair
and equitable to establish the order of receipt of requests for such
distributions received by it on the same day. None of the Company, the Master
Servicer or the Trustee shall be liable for any delay in delivery of requests
for distributions or withdrawals of such requests by DTC, a DTC Participant or
any Indirect DTC Participant.
The Trustee shall maintain a list of those DTC Participants
representing the appropriate Holders of Special Retail Certificates that have
submitted requests for principal distributions, together with the order of
receipt and the amounts of such requests. Subject to the priorities described in
Section 4.06(a) above, DTC will honor requests for distributions in the order of
their receipt. The Trustee shall notify DTC as to which requests should be
honored on each Distribution Date at least two Business Days prior to such
Distribution Date and shall notify DTC as to the portion of the REMIC II
Available Distribution Amount (together with any amounts available for
distribution from the applicable Rounding Account) to be distributed to the
Special Retail Certificates by mandatory distribution pursuant to Section
4.06(d). Requests shall be honored by DTC in accordance with the procedures, and
subject to the priorities and limitations, described in this Section 4.06. The
exact procedures to be followed by the Trustee and DTC for purposes of
determining such priorities and limitations will be those established from time
to time by the Trustee or DTC, as the case may be. The decisions of the Trustee
and DTC concerning such matters will be final and binding on all affected
persons.
Special Retail Certificates that have been accepted for a distribution
shall be due and payable on the applicable Distribution Date. Such Certificates
shall cease to bear interest after the last calendar day of the month preceding
the month in which such Distribution Date occurs.
Any Holder of a Special Retail Certificate that has requested a
principal distribution may withdraw its request by so notifying in writing the
DTC Participant or Indirect DTC Participant that maintains such Holder's
account. In the event that such account is maintained by an Indirect DTC
Participant, such Indirect DTC Participant must notify the related DTC
Participant which in
113
turn must forward the withdrawal of such request, on a form required by DTC, to
DTC to be forwarded to the Trustee. If such notice of withdrawal of a request
for distribution has not been received by DTC and forwarded to the Trustee on or
before the Record Date for the next Distribution Date, the previously made
request for a principal distribution will be irrevocable with respect to the
making of principal distributions on such Distribution Date.
In the event any requests for principal distributions are rejected by
the Trustee for failure to comply with the requirements of this Section 4.06,
the Trustee shall return such request to the appropriate DTC Participant with a
copy to DTC with an explanation as to the reason for such rejection.
(d) To the extent, if any, that principal distributions to be made to
any Class of Special Retail Certificates on a Distribution Date exceed the
aggregate amount of principal distribution requests for such Class which have
been received on or before the applicable Record Date, as provided in Section
4.06(a) above, additional Special Retail Certificates of such Class will be
selected to receive mandatory principal distributions in lots equal to $1,000 in
accordance with the then-applicable Random Lot procedures of DTC, and the
then-applicable procedures of the DTC Participants and Indirect DTC Participants
representing the Holders (which procedures may or may not be by random lot). The
Trustee shall notify DTC of the aggregate amount of the mandatory principal
distribution to be made on the next Distribution Date. DTC shall then allocate
such aggregate amount among the DTC Participants on a Random Lot basis. Each DTC
Participant and, in turn, each Indirect DTC Participant will then select, in
accordance with its own procedures, Special Retail Certificates from among those
held in its accounts to receive mandatory principal distributions, such that the
total amount of principal distributed to the Special Retail Certificates so
selected is equal to the aggregate amount of such mandatory distributions
allocated to such DTC Participant by DTC and to such Indirect DTC Participant by
its related DTC Participant, as the case may be. DTC Participants and Indirect
DTC Participants that hold Special Retail Certificates selected for mandatory
principal distributions are required to provide notice of such mandatory
distributions to the affected Holders. The Master Servicer shall notify the
Trustee of the amount of principal distributions to be made on each Distribution
Date in a timely manner such that the Trustee may fulfill its obligations under
the Depositary Agreement.
(e) Notwithstanding any provisions herein to the contrary, on each
Distribution Date on and after the earlier of (i) the Group II Credit Support
Depletion Date and (ii) the date on which any loss is allocated to a Class of
Special Retail Certificates or its Corresponding Class by Pro Rata Allocation,
distributions in reduction of the Class Principal Balance of such Class will be
made pro rata among the Holders of the Certificates of such Class and will not
be made in integral multiples of $1,000 nor pursuant to requests for
distribution as permitted by Section 4.06(a) or by mandatory distributions as
provided for by Section 4.06(d).
(f) In the event that Definitive Certificates representing Special
Retail Certificates are issued pursuant to Section 5.09, an amendment to this
Agreement, which may be approved without the consent of any Certificateholders,
shall establish procedures relating to the manner in which distributions in
reduction of the Class Principal Balance of each Class of Special Retail
Certificates are to be made; provided that such procedures shall be consistent,
to the extent
114
practicable and customary for certificates similar to the Special Retail
Certificates, with the provisions of this Section 4.06.
ARTICLE V
The Certificates
Section 5.01. The Certificates.
(a) The Certificates shall be substantially in the forms set forth in
Exhibit A and B with the additional insertion from Exhibit H attached hereto,
and shall be executed by the Trustee, authenticated by the Trustee (or any duly
appointed Authenticating Agent) and delivered (i) upon and pursuant to the order
of the Company and (ii) upon receipt by the Trustee of the documents specified
in Section 2.01. The Certificates shall be issuable in Authorized Denominations
evidencing Percentage Interests. Certificates shall be executed by manual or
facsimile signature on behalf of the Trustee by authorized officers of the
Trustee. Certificates bearing the manual or facsimile signatures of individuals
who were at the time of execution the proper officers of the Trustee shall bind
the Trustee, notwithstanding that such individuals or any of them have ceased to
hold such offices prior to the authentication and delivery of such Certificates
or did not hold such offices at the date of such Certificates. No Certificate
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 the
Trustee or any Authenticating Agent by manual signature, and such certificate
upon any Certificate shall be conclusive evidence, and the only evidence, that
such Certificate has been duly authenticated and delivered hereunder. All
Certificates shall be dated the date of their authentication.
(b) The following definitions apply for purposes of this Section 5.01:
"Disqualified Organization" means any Person which is not a Permitted
Transferee, but does not include any "Pass-Through Entity" which owns or holds a
Residual Certificate and of which a Disqualified Organization, directly or
indirectly, may be a stockholder, partner or beneficiary; "Pass-Through Entity"
means any regulated investment company, real estate investment trust, common
trust fund, partnership, trust or estate, and any organization to which Section
1381 of the Code applies; "Ownership Interest" means, with respect to any
Residual Certificate, any ownership or security interest in such Residual
Certificate, including any interest in a Residual Certificate as the Holder
thereof and any other interest therein whether direct or indirect, legal or
beneficial, as owner or as pledgee; "Transfer" means any direct or indirect
transfer or sale of, or directly or indirectly transferring or selling any
Ownership Interest in a Residual Certificate; and "Transferee" means any Person
who is acquiring by Transfer any Ownership Interest in a Residual Certificate.
(c) Restrictions on Transfers of the Residual Certificates to
Disqualified Organizations are set forth in this Section 5.01(c).
(i) Each Person who has or who acquires any Ownership Interest
in a Residual Certificate shall be deemed by the acceptance or
acquisition of such Ownership Interest to have agreed to be bound by
the following provisions and to have irrevocably
115
authorized the Trustee or its designee under clause (iii)(A) below to
deliver payments to a Person other than such Person and to negotiate
the terms of any mandatory sale under clause (iii)(B) below and to
execute all instruments of transfer and to do all other things
necessary in connection with any such sale. The rights of each Person
acquiring any Ownership Interest in a Residual Certificate are
expressly subject to the following provisions:
(A) Each Person holding or acquiring any Ownership
Interest in a Residual Certificate shall be a Permitted
Transferee and shall promptly notify the Trustee of any change
or impending change in its status as a Permitted Transferee.
(B) In connection with any proposed Transfer of any
Ownership Interest in a Residual Certificate to a U.S. Person,
the Trustee shall require delivery to it, and shall not
register the Transfer of any Residual Certificate until its
receipt of (1) an affidavit and agreement (a "Transferee
Affidavit and Agreement") attached hereto as Exhibit J from
the proposed Transferee, in form and substance satisfactory to
the Company, representing and warranting, among other things,
that it is not a Non-U.S. Person, that such transferee is a
Permitted Transferee, that it is not acquiring its Ownership
Interest in the Residual Certificate that is the subject of
the proposed Transfer as a nominee, trustee or agent for any
Person who is not a Permitted Transferee, that for so long as
it retains its Ownership Interest in a Residual Certificate,
it will endeavor to remain a Permitted Transferee, and that it
has reviewed the provisions of this Section 5.01(c) and agrees
to be bound by them, and (2) a certificate, attached hereto as
Exhibit I, from the Holder wishing to transfer the Residual
Certificate, in form and substance satisfactory to the
Company, representing and warranting, among other things, that
no purpose of the proposed Transfer is to allow such Holder to
impede the assessment or collection of tax.
(C) Notwithstanding the delivery of a Transferee
Affidavit and Agreement by a proposed Transferee under clause
(B) above, if the Trustee has actual knowledge that the
proposed Transferee is not a Permitted Transferee, no Transfer
of an Ownership Interest in a Residual Certificate to such
proposed Transferee shall be effected.
(D) Each Person holding or acquiring any Ownership
Interest in a Residual Certificate agrees by holding or
acquiring such Ownership Interest (i) to require a Transferee
Affidavit and Agreement from any other Person to whom such
Person attempts to transfer its Ownership Interest and to
provide a certificate to the Trustee in the form attached
hereto as Exhibit J; (ii) to obtain the express written
consent of the Company prior to any transfer of such Ownership
Interest, which consent may be withheld in the Company's sole
discretion; and (iii) to provide a certificate to the Trustee
in the form attached hereto as Exhibit I.
(ii) The Trustee shall register the Transfer of any Residual
Certificate only if it shall have received the Transferee Affidavit and
Agreement, a certificate of the Holder requesting such transfer in the
form attached hereto as Exhibit J and all of such other
116
documents as shall have been reasonably required by the Trustee as a
condition to such registration.
(iii) (A) If any "disqualified organization" (as defined in
Section 860E(e)(5) of the Code) shall become a holder of a
Residual Certificate, then the last preceding Permitted
Transferee shall be restored, to the extent permitted by law,
to all rights and obligations as Holder thereof retroactive to
the date of registration of such Transfer of such Residual
Certificate. If any Non-U.S. Person shall become a holder of a
Residual Certificate, then the last preceding holder which is
a U.S. Person shall be restored, to the extent permitted by
law, to all rights and obligations as Holder thereof
retroactive to the date of registration of the Transfer to
such Non-U.S. Person of such Residual Certificate. If a
transfer of a Residual Certificate is disregarded pursuant to
the provisions of Treasury Regulations Section 1.860E-1 or
Section 1.860G-3, then the last preceding Permitted Transferee
shall be restored, to the extent permitted by law, to all
rights and obligations as Holder thereof retroactive to the
date of registration of such 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
5.01(c) or for making any payments due on such Certificate to
the holder thereof or for taking any other action with respect
to such holder under the provisions of this Agreement.
(B) If any purported Transferee shall become a Holder
of a Residual Certificate in violation of the restrictions in
this Section 5.01(c) and to the extent that the retroactive
restoration of the rights of the Holder of such Residual
Certificate as described in clause (iii)(A) above shall be
invalid, illegal or unenforceable, then the Company shall have
the right, without notice to the Holder or any prior Holder of
such Residual Certificate, to sell such Residual Certificate
to a purchaser selected by the Company on such terms as the
Company may choose. Such purported Transferee shall promptly
endorse and deliver each Residual Certificate in accordance
with the instructions of the Company. Such purchaser may be
the Company itself or any affiliate of the Company. The
proceeds of such sale, net of the commissions (which may
include commissions payable to the Company or its affiliates),
expenses and taxes due, if any, shall be remitted by the
Company to such purported Transferee. The terms and conditions
of any sale under this clause (iii)(B) shall be determined in
the sole discretion of the Company, and the Company shall not
be liable to any Person having an Ownership Interest in a
Residual Certificate as a result of its exercise of such
discretion.
(iv) The Company, on behalf of the Trustee, shall make available, upon
written request from the Trustee, all information necessary to compute any tax
imposed (A) as a result of the Transfer of an Ownership Interest in a Residual
Certificate to any Person who is not a Permitted Transferee, including the
information regarding "excess inclusions" of such Residual Certificates required
to be provided to the Internal Revenue Service and certain Persons as described
in Treasury Regulation Section 1.860D-1(b)(5), and (B) as a result of any
regulated investment company, real estate investment trust,
117
common trust fund, partnership, trust, estate or organizations described in
Section 1381 of the Code having as among its record holders at any time any
Person who is not a Permitted Transferee. Reasonable compensation for providing
such information may be required by the Company from such Person.
(v) The provisions of this Section 5.01 set forth prior to
this Section (v) may be modified, added to or eliminated by the Company
and the Trustee, provided that there shall have been delivered to the
Trustee the following:
(A) written notification from each of the Rating
Agencies to the effect that the modification, addition to or
elimination of such provisions will not cause such Rating
Agency to downgrade its then-current Ratings of the
Certificates (determined in the case of the Insured
Certificates, without giving effect to the Certificate
Insurance Policy); and
(B) an Opinion of Counsel, in form and substance
satisfactory to the Company (as evidenced by a certificate of
the Company), to the effect that such modification, addition
to or absence of such provisions will not cause REMIC I and
REMIC II to cease to qualify as a REMIC and will not create a
risk that (1) REMIC I and REMIC II may be subject to an
entity-level tax caused by the Transfer of any Residual
Certificate to a Person which is not a Permitted Transferee or
(2) a Certificateholder or another Person will be subject to a
REMIC-related tax caused by the Transfer of a Residual
Certificate to a Person which is not a Permitted Transferee.
(vi) The following legend shall appear on all Residual
Certificates:
ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE
MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO
THE COMPANY AND THE TRUSTEE THAT (1) SUCH TRANSFEREE IS NOT EITHER (A)
THE UNITED STATES, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY
FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR
INSTRUMENTALITY OF ANY OF THE FOREGOING, (B) ANY ORGANIZATION (OTHER
THAN A COOPERATIVE DESCRIBED IN SECTION 521 OF THE CODE) WHICH IS
EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH
ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE,
(C) ANY ORGANIZATION DESCRIBED IN SECTION 1381(a)(2)(C) OF THE CODE
(ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A), (B), OR (C)
BEING HEREINAFTER REFERRED TO AS A "DISQUALIFIED ORGANIZATION"), OR (D)
AN AGENT OF A DISQUALIFIED ORGANIZATION AND (2) NO PURPOSE OF SUCH
TRANSFER IS TO ENABLE THE TRANSFEROR TO IMPEDE THE ASSESSMENT OR
COLLECTION OF TAX. SUCH AFFIDAVIT SHALL INCLUDE CERTAIN REPRESENTATIONS
AS TO THE FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE.
NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE REGISTER OF ANY
TRANSFER, SALE OR OTHER DISPOSITION
118
OF THIS CLASS [R-1] [R-2] CERTIFICATE TO A DISQUALIFIED ORGANIZATION OR
AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL BE
DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON
SHALL NOT BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE
HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS
ON THIS CERTIFICATE. EACH HOLDER OF THE CLASS [R-1] [R-2] CERTIFICATE
BY ACCEPTANCE OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE CONSENTED TO
THE PROVISIONS OF THIS PARAGRAPH.
(vii) The Tax Matters Person for each of REMIC I and REMIC II,
while not a Disqualified Organization, shall be the tax matters person
for the related REMIC within the meaning of Section 6231(a)(7) of the
Code and Treasury Regulation Section 1.860F-4(d).
(d) In the case of any Junior Subordinate Certificate presented for
registration in the name of any Person, the Trustee shall require (i) an
officer's certificate substantially in the form of Exhibit N attached hereto
acceptable to and in form and substance satisfactory to the Trustee and the
Company, which officer's certificate shall not be an expense of the Trustee, the
Master Servicer or the Company, and (ii) only if such officer's certificate
indicates that a Benefit Plan Opinion is delivered in connection therewith, a
Benefit Plan Opinion.
In the case of any Residual Certificate presented for registration in
the name of any Person, the Trustee shall require (i) a Transferee Affidavit and
Agreement which includes the representation set forth in paragraph 18 of the
form attached hereto as Exhibit J and (ii) only if the representation set forth
in such paragraph 18 indicates that a Benefit Plan Opinion is delivered in
connection therewith, a Benefit Plan Opinion.
(e) No transfer, sale, pledge or other disposition of a Junior
Subordinate Certificate shall be made unless such transfer, sale, pledge or
other disposition is made in accordance with this Section 5.01(e) or Section
5.01(f). Each Person who, at any time, acquires any ownership interest in any
Junior Subordinate Certificate shall be deemed by the acceptance or acquisition
of such ownership interest to have agreed to be bound by the following
provisions of this Section 5.01(e) and Section 5.01(f), as applicable. No
transfer of a Junior Subordinate Certificate shall be deemed to be made in
accordance with this Section 5.01(e) unless such transfer is made pursuant to an
effective registration statement under the Securities Act or unless the Trustee
is provided with the certificates and an Opinion of Counsel, if required, on
which the Trustee may conclusively rely, to the effect that such transfer is
exempt from the registration requirements under the Securities Act, as follows:
In the event that a transfer is to be made in reliance upon an exemption from
the Securities Act, the Trustee shall require, in order to assure compliance
with the Securities Act, that the Certificateholder desiring to effect such
transfer certify to the Trustee in writing, in substantially the form attached
hereto as Exhibit F, the facts surrounding the transfer, with such modifications
to such Exhibit F as may be appropriate to reflect the actual facts of the
proposed transfer, and that the Certificateholder's proposed transferee certify
to the Trustee in writing, in substantially the form attached hereto as Exhibit
G, the facts surrounding the transfer, with such modifications to such Exhibit G
as may be appropriate to reflect the actual facts of the proposed transfer. If
such certificate of the proposed transferee does not contain
119
substantially the substance of Exhibit G, the Trustee shall require an Opinion
of Counsel that such transfer may be made without registration, which Opinion of
Counsel shall not be obtained at the expense of the Trustee, the REMIC I Trust
Fund, the REMIC II Trust Fund or the Company. Such Opinion of Counsel shall
allow for the forwarding, and the Trustee shall forward, a copy thereof to the
Rating Agencies. Notwithstanding the foregoing, any Junior Subordinate
Certificate may be transferred, sold, pledged or otherwise disposed of in
accordance with the requirements set forth in Section 5.01(f).
(f) To effectuate a Certificate transfer of a Junior Subordinate
Certificate in accordance with this Section 5.01(f), the proposed transferee of
such Certificate must provide the Trustee and the Company with an investment
letter substantially in the form of Exhibit L attached hereto, which investment
letter shall not be an expense of the Trustee or the Company, and which
investment letter states that, among other things, such transferee (i) is a
"qualified institutional buyer" as defined under Rule 144A, acting for its own
account or the accounts of other "qualified institutional buyers" as defined
under Rule 144A, and (ii) is aware that the proposed transferor intends to rely
on the exemption from registration requirements under the Securities Act
provided by Rule 144A. Notwithstanding the foregoing, the proposed transferee of
such Certificate shall not be required to provide the Trustee or the Company
with Annex 1 or Annex 2 to the form of Exhibit L attached hereto if the Company
so consents prior to each such transfer. Such transfers shall be deemed to have
complied with the requirements of this Section 5.01(f). The Holder of a
Certificate desiring to effect such transfer does hereby agree to indemnify the
Trustee, the Company, and the Certificate Registrar against any liability that
may result if transfer is not made in accordance with this Agreement.
(g) (1) In the case of any ERISA Restricted Certificate presented for
registration in the name of any Person, the prospective transferee shall be
required to provide the Trustee and the Company (A) an officer's certificate
substantially in the form of Exhibit O attached hereto acceptable to and in form
and substance satisfactory to the Trustee and the Company, which officer's
certificate shall not be an expense of the Trustee, the Master Servicer or the
Company, and (B) only if such officer's certificate indicates that a Benefit
Plan Opinion is delivered in connection therewith, a Benefit Plan Opinion.
(2) Notwithstanding the foregoing, a certification (and, if
applicable, a Benefit Plan Opinion) as described in Section 5.01(g)(1)
above will not be required with respect to the transfer of any ERISA
Restricted Certificate to a Clearing Agency, or for any subsequent
transfer of any interest in a ERISA Restricted Certificate for so long
as such Certificate is a Book-Entry Certificate (each such ERISA
Restricted Certificate, a "Book-Entry ERISA Restricted Certificate").
Any transferee of a Book-Entry ERISA Restricted Certificate will be
deemed to have represented, by virtue of its acquisition or holding of
such Certificate (or interest therein), that either (i) such transferee
is not an employee benefit or other plan subject to the prohibited
transaction provisions of ERISA or Section 4975 of the Code, or any
person (including an investment manager, a named fiduciary or a trustee
of any such plan) acting, directly or indirectly, on behalf of or
purchasing such Certificate with "plan assets" of any such plan (a
"Plan Investor"), (ii) such transferee is an insurance company, the
source of funds to be used by it to acquire or hold such Certificate is
an "insurance company general account" (within the meaning of
Department of Labor Prohibited Transaction Class Exemption ("PTCE")
95-60), and the
120
conditions in Section I and III of PTCE 95-60 have been satisfied (each
entity that satisfies this clause (ii), a "Complying Insurance
Company") or (iii) such Certificate was rated "BBB-" or better (or its
equivalent) by at least one of the Rating Agencies at the time of such
transferee's acquisition of such Certificate (or interest therein).
(3) If any Book-Entry ERISA Restricted Certificate (or any
interest therein) is acquired or held in violation of the provisions of
Section 5.01(g)(2) above, then the last preceding transferee that
either (i) is not a Plan Investor, (ii) is a Complying Insurance
Company or (iii) acquired such Certificate at a time when such
Certificate was rated "BBB-" or better (or its equivalent) by at least
one of the Rating Agencies shall be restored, to the extent permitted
by law, to all rights and obligations as Beneficial Holder thereof
retroactive to the date of transfer of such Certificate by such
preceding transferee. The Trustee shall be under no liability to any
Person for making any payments due on such Certificate to such
preceding transferee.
(4) Any purported Beneficial Holder whose acquisition or
holding of any Book-Entry ERISA Restricted Certificate (or interest
therein) was effected in violation of the restrictions in this Section
5.01(g) shall indemnify and hold harmless the Company, the Trustee, the
Master Servicer, the Trust and the Underwriter from and against any and
all liabilities, claims, costs or expenses incurred by such parties as
a result of such acquisition or holding.
Section 5.02. Certificates Issuable in Classes; Distributions of
Principal and Interest; Authorized Denominations. The aggregate principal amount
of the Certificates that may be authenticated and delivered under this Agreement
is limited to the aggregate Principal Balance of the Mortgage Loans as of the
Cut-Off Date, as specified in the Preliminary Statement to this Agreement,
except for Certificates authenticated and delivered upon registration of
transfer of, or in exchange for, or in lieu of, other Certificates pursuant to
Section 5.03. Such aggregate principal amount shall be allocated among one or
more Classes having designations, types of interests, initial per annum
Certificate Interest Rates, initial Class Principal Balances and Final Maturity
Dates as specified in the Preliminary Statement to this Agreement. The aggregate
Percentage Interest of each Class of Certificates of which the Class Principal
Balance equals zero as of the Cut-Off Date that may be authenticated and
delivered under this Agreement is limited to 100%. Certificates shall be issued
in Authorized Denominations.
Section 5.03. Registration of Transfer and Exchange of Certificates.
The Trustee shall cause to be maintained at one of its offices or at its
designated agent, a Certificate Register in which there shall be recorded the
name and address of each Certificateholder. Subject to such reasonable rules and
regulations as the Trustee may prescribe, the Certificate Register shall be
amended from time to time by the Trustee or its agent to reflect notice of any
changes received by the Trustee or its agent pursuant to Section 10.06. The
Trustee hereby appoints itself as the initial Certificate Registrar.
Upon surrender for registration of transfer of any Certificate to the
Trustee at the Corporate Trust Office of the Trustee or at the office of State
Street Bank and Trust Company, N.A., 00 Xxxxxxxx, Xxx Xxxx, Xxx Xxxx 00000,
Attention: Corporate Trust Window, or such other address or agency as may
hereafter be provided to the Master Servicer in writing by the
121
Trustee, the Trustee shall execute, and the Trustee or any Authenticating Agent
shall authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Certificates of Authorized Denominations of like
Percentage Interest. At the option of the Certificateholders, Certificates may
be exchanged for other Certificates in Authorized Denominations of like
Percentage Interest, upon surrender of the Certificates to be exchanged at any
such office or agency. Whenever any Certificates are so surrendered for
exchange, the Trustee shall execute, and the Trustee, or any Authenticating
Agent, shall authenticate and deliver, the Certificates which the
Certificateholder making the exchange is entitled to receive. Every Certificate
presented or surrendered for transfer shall (if so required by the Trustee or
any Authenticating Agent) be duly endorsed by, or be accompanied by a written
instrument of transfer in form satisfactory to the Trustee or any Authenticating
Agent and duly executed by, the Holder thereof or such Holder's attorney duly
authorized in writing.
A reasonable service charge may be made for any such exchange or
transfer of Certificates, and the Trustee may require payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any exchange or transfer of Certificates.
All Certificates surrendered for exchange or transfer shall be
cancelled by the Trustee or any Authenticating Agent.
Section 5.04. Mutilated, Destroyed, Lost or Stolen Certificates. If (i) any
mutilated Certificate is surrendered to the Trustee or any Authenticating Agent,
or (ii) the Trustee or any Authenticating Agent receives evidence to their
satisfaction of the destruction, loss or theft of any Certificate, and there is
delivered to the Trustee or any Authenticating Agent (and with respect to the
Insured Certificates, the Certificate Insurer) such security or indemnity as may
be required by them to save each of them harmless, then, in the absence of
notice to the Trustee or any Authenticating Agent that such 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 Percentage Interest. Upon the issuance of any new
Certificate under this Section 5.04, the Trustee or any 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 any Authenticating Agent) connected
therewith. Any replacement Certificate issued pursuant to this Section 5.04
shall constitute complete and indefeasible evidence of ownership in the REMIC II
Trust Fund (or with respect to the Class R-1 Certificates, the residual
ownership interest in the REMIC I Trust Fund) as if originally issued, whether
or not the lost or stolen Certificate shall be found at any time.
Section 5.05. Persons Deemed Owners. The Company, the Master Servicer,
the Trustee, the Certificate Insurer (with respect to the Insured Certificates)
and any agent of any of them may treat the Person in whose name any Certificate
is registered as the owner of such Certificate for the purpose of receiving
distributions pursuant to Section 4.01 and Section 4.04 and for all other
purposes whatsoever, and neither the Company, the Master Servicer, the Trustee,
the Certificate Registrar, the Certificate Insurer nor any agent of the Company,
the Master Servicer or the Trustee shall be affected by notice to the contrary.
122
Section 5.06. Temporary Certificates. Upon the initial issuance of the
Certificates, the Trustee may execute, and the Trustee or any Authenticating
Agent shall authenticate and deliver, temporary Certificates which are printed,
lithographed, typewritten or otherwise produced, in any Authorized Denomination,
of the tenor of the definitive Certificates in lieu of which they are issued and
with such variations in form from the forms of the Certificates set forth as
Exhibits A, B, C and H hereto as the Trustee's officers executing such
Certificates may determine, as evidenced by their execution of the Certificates.
Notwithstanding the foregoing, the Certificates may remain in the form of
temporary Certificates.
If temporary Certificates are issued, the Trustee shall cause
definitive Certificates to be prepared within ten Business Days after the
Closing Date or as soon as practicable thereafter. After 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 to be maintained as provided in Section 5.10
hereof, without charge to the holder. Any tax or governmental charge that may be
imposed in connection with any such exchange shall be borne by the Master
Servicer. Upon surrender for cancellation of any one or more temporary
Certificates, the Trustee shall execute and the Trustee or any Authenticating
Agent shall authenticate and deliver in exchange therefor a like principal
amount of definitive Certificates of Authorized Denominations. Until so
exchanged, the temporary Certificates shall in all respects be entitled to the
same benefits under this Agreement as definitive Certificates.
Section 5.07. Book-Entry for Book-Entry Certificates. Notwithstanding
the foregoing, the Book-Entry Certificates, upon original issuance, shall be
issued in the form of one or more typewritten Certificates of Authorized
Denomination representing the Book-Entry Certificates, to be delivered to DTC,
the initial Clearing Agency, by, or on behalf of, the Company. The Book-Entry
Certificates shall initially be registered on the Certificate Register in the
name of Cede & Co., the nominee of DTC, as the initial Clearing Agency, and no
Beneficial Holder shall receive a definitive certificate representing such
Beneficial Holder's interest in any Class of Book-Entry Certificate, except as
provided above and in Section 5.09. Each Book-Entry Certificate shall bear the
following legend:
Unless this Certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation ("DTC"), to the
Company or its agent for registration of transfer, exchange, or
payment, and any Certificate issued is registered in the name of Cede &
Co. or such other name as is requested by an authorized representative
of DTC (and any payment is made to Cede & Co. or to such other entity
as is requested by an authorized representative of DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an
interest herein.
Unless and until definitive, fully registered Book-Entry Certificates (the
"Definitive Certificates") have been issued to the Beneficial Holders pursuant
to Section 5.09:
(a) the provisions of this Section 5.07 shall be in full force
and effect with respect to the Book-Entry Certificates;
123
(b) the Master Servicer and the Trustee may deal with the
Clearing Agency for all purposes with respect to the Book-Entry
Certificates (including the making of distributions on the Book-Entry
Certificates) as the sole Certificateholder;
(c) to the extent that the provisions of this Section 5.07
conflict with any other provisions of this Agreement, the provisions of
this Section 5.07 shall control; and
(d) the rights of the Beneficial Holders shall be exercised
only through the Clearing Agency and the DTC Participants and shall be
limited to those established by law and agreements between such
Beneficial Holders and the Clearing Agency and/or the DTC Participants.
Pursuant to the Depositary Agreement, unless and until Definitive
Certificates are issued pursuant to Section 5.09, the initial Clearing
Agency will make book-entry transfers among the DTC Participants and
receive and transmit distributions of principal and interest on the
related Class of Book-Entry Certificates to such DTC Participants.
For purposes of any provision of this Agreement requiring or permitting
actions with the consent of, or at the direction of, Holders of Book-Entry
Certificates evidencing a specified Percentage Interest, such direction or
consent may be given by the Clearing Agency at the direction of Beneficial
Holders owning Book-Entry Certificates evidencing the requisite Percentage
Interest represented by the Book-Entry Certificates. The Clearing Agency may
take conflicting actions with respect to the Book-Entry Certificates to the
extent that such actions are taken on behalf of the Beneficial Holders.
Section 5.08. Notices to Clearing Agency. Whenever notice or other
communication to the Certificateholders is required under this Agreement, unless
and until Definitive Certificates shall have been issued to the related
Certificateholders pursuant to Section 5.09, 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 which shall give such notices and
communications to the related DTC Participants in accordance with its applicable
rules, regulations and procedures.
Section 5.09. Definitive Certificates. If (a) the Master Servicer
notifies the Trustee in writing that the Clearing Agency is no longer willing or
able to discharge properly its responsibilities under the Depositary Agreement
with respect to the Book-Entry Certificates and the Trustee or the Master
Servicer is unable to locate a qualified successor, (b) the Master Servicer, at
its option, advises the Trustee in writing that it elects to terminate the
book-entry system with respect to the Book-Entry Certificates through the
Clearing Agency or (c) after the occurrence of an Event of Default,
Certificateholders holding Book-Entry Certificates evidencing Percentage
Interests aggregating not less than 66% of the aggregate Class Principal Balance
of such Certificates advise the Trustee and the Clearing Agency through DTC
Participants in writing that the continuation of a book-entry system with
respect to the Book-Entry Certificates through the Clearing Agency is no longer
in the best interests of the Certificateholders with respect to such
Certificates, the Trustee shall notify all Certificateholders of Book-Entry
Certificates and the Certificate Insurer of the occurrence of any such event and
of the availability of Definitive Certificates. 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
execute and the Trustee or any Authenticating Agent
124
shall authenticate and deliver the Definitive Certificates. Neither the Company,
the Master Servicer 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 for
all of the 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
Definitive Certificates as Certificateholders hereunder.
Section 5.10. Office for Transfer of Certificates. The Trustee shall
maintain in Massachusetts and in New York, New York, an office or agency where
Certificates may be surrendered for registration of transfer or exchange. The
Corporate Trust Office and State Street Bank and Trust Company, N.A., 00
Xxxxxxxx, Xxx Xxxx, XX 00000, Attention: Corporate Trust Window are initially
designated for said purposes.
ARTICLE VI
The Company and the Master Servicer
Section 6.01. Liability of the Company and the Master Servicer. The
Company and the Master Servicer shall be liable in accordance herewith only to
the extent of the obligations specifically imposed upon and undertaken by the
Company or the Master Servicer, as applicable, herein.
Section 6.02. Merger or Consolidation of the Company, or the Master
Servicer. Any Corporation into which the Company or the Master Servicer may be
merged or consolidated, or any Corporation resulting from any merger, conversion
or consolidation to which the Company or the Master Servicer shall be a party,
or any Corporation succeeding to the business of the Company or the Master
Servicer, shall be the successor of the Company or 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.
Section 6.03. Limitation on Liability of the Company, the Master
Servicer and Others. Neither the Company nor the Master Servicer nor any of the
directors, officers, employees or agents of the Company or the Master Servicer
shall be under any liability to the Trust Fund or the REMIC I or REMIC II Trust
Fund or the Certificateholders for any action taken by such Person or by a
Servicer or for such Person's or Servicer's 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 Company, the Master
Servicer or any such Person against any liability which would otherwise be
imposed by reason of willful misfeasance, bad faith or gross negligence in the
performance of duties or by reason of reckless disregard of duties and
obligations hereunder. The Company, the Master Servicer and any director,
officer, employee or agent of the Company or the Master Servicer may rely in
good faith on any document of any kind properly executed and submitted by any
Person respecting any matters arising hereunder. The Company, the Master
Servicer and any director, officer, employee or agent of the Company or the
Master Servicer shall be indemnified by the Trust Fund and 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 relating to any Mortgage Loan (other
125
than as otherwise permitted in this Agreement) or incurred by reason of willful
misfeasance, bad faith or gross negligence in the performance of duties
hereunder or by reason of reckless disregard of obligations and duties
hereunder. The Company and the Master Servicer shall not be under any obligation
to appear in, prosecute or defend any legal action which is not incidental to
its duties to service the Mortgage Loans in accordance with this Agreement and
which in its opinion may involve it in any expense or liability; provided,
however, that the Company or the Master Servicer may in its discretion undertake
any such action which it may deem necessary or desirable with respect to the
Mortgage Loans, this Agreement, the Certificates or 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
Company and the Master Servicer shall be entitled to be reimbursed therefor out
of the Certificate Account, as provided by Section 3.05.
Section 6.04. The Company and the Master Servicer not to Resign. The
Company shall not resign from the obligations and duties (including, without
limitation, its obligations and duties as initial Master Servicer) hereby
imposed on it except upon determination that its duties hereunder are no longer
permissible under applicable law. Any successor Master Servicer shall not resign
from the obligations and duties hereby imposed on it except upon determination
that its duties hereunder are no longer permissible under applicable law. Any
such determination permitting the resignation of the Company or any successor
Master Servicer shall be evidenced by an Opinion of Counsel to such effect
delivered to the Trustee and the Certificate Insurer. No such resignation shall
become effective until the Trustee or a successor Master Servicer shall have
assumed the Master Servicer's responsibilities and obligations in accordance
with Section 7.02 hereof.
If the Company is no longer acting as Master Servicer, then the
successor Master Servicer shall give prompt written notice to the Company of any
information received by such successor Master Servicer which affects or relates
to an ongoing obligation or right of the Company under this Agreement.
Section 6.05. Trustee Access. The Master Servicer shall afford the
Company, the Certificate Insurer and the Trustee, upon reasonable notice, during
normal business hours access to all records maintained by the Master Servicer,
in respect of the Mortgage Loans and in respect of its rights and obligations
hereunder and access to such of its officers as are responsible for such
obligations. Upon reasonable request, the Master Servicer, shall furnish the
Company, the Certificate Insurer and the Trustee with its most recent financial
statements (or, for so long as the Company is the Master Servicer, the most
recent consolidated financial statements for the Company appearing in the
audited financial statements of Washington Mutual, Inc., or the entity with
whose financial statements the financial statements of the Company are
consolidated) and such other information as it possesses, and which it is not
prohibited by law or, to the extent applicable, binding obligations to third
parties with respect to confidentiality from disclosing, regarding its business,
affairs, property and condition, financial or otherwise.
126
ARTICLE VII
Default
Section 7.01. Events of Default. (a) In case one or more of the
following Events of Default by the Master Servicer or by a successor Master
Servicer shall occur and be continuing, that is to say:
(i) Any failure by the Master Servicer to deposit into the
Certificate Account any payment required to be deposited therein by the
Master Servicer under the terms of this Agreement which continues
unremedied for a period of ten days after the date upon 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 the Certificate Insurer or the Holders of
Certificates evidencing Percentage Interests aggregating not less than
25% of the REMIC II Trust Fund; or
(ii) 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 the
Certificates or in this Agreement which continues unremedied for a
period of 60 days 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 the Certificate Insurer or the Holders of Certificates
evidencing Percentage Interests aggregating not less than 25% of the
REMIC II Trust Fund; or
(iii) A decree or order of a court or agency or supervisory
authority having jurisdiction in the premises for the appointment of a
trustee in bankruptcy, conservator or receiver or liquidator in any
bankruptcy, 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
(iv) The Master Servicer shall consent to the appointment of a
trustee in bankruptcy, conservator or receiver or liquidator in any
bankruptcy, insolvency, readjustment of debt, marshalling of assets and
liabilities 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 bankruptcy, insolvency or reorganization
statute, make an assignment for the benefit of its creditors, or
voluntarily suspend payment of its obligations; or
(vi) Any failure of the Master Servicer to make any Monthly
P&I Advance (other than a Nonrecoverable Advance) which continues
unremedied at the opening of business on the Distribution Date in
respect of which such Monthly P&I Advance was to have been made;
127
then, and in each and every such case, so long as an Event of Default shall not
have been remedied, either the Trustee, the Certificate Insurer or the Holders
of Certificates evidencing Percentage Interests aggregating not less than 25% of
the REMIC II Trust Fund, by notice in writing to the Company and the Master
Servicer (and to the Trustee if given by the Certificateholders, in which case
such notice shall set forth evidence reasonably satisfactory to the Trustee that
such Event of Default has occurred and shall not have been remedied) may
terminate all of the rights (other than its right to reimbursement for advances)
and obligations of the Master Servicer, including its right to the Master
Servicing Fee, under this Agreement and in and to the Mortgage Loans and the
proceeds thereof, if any. Such determination shall be final and binding. On or
after the receipt by the Master Servicer of such written notice, all authority
and power of the Master Servicer under this Agreement, whether with respect to
the Certificates or the Mortgage Loans or otherwise, shall pass to and be vested
in the Trustee pursuant to and under this Section 7.01; and, without limitation,
the Trustee is hereby authorized and empowered to execute and deliver, on behalf
of the 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 Master Servicer agrees to
cooperate with the Trustee in effecting the termination of the Master Servicer's
responsibilities and rights hereunder, including, without limitation, the
transfer to the Trustee for administration by it of all cash amounts which shall
at the time be credited by the Master Servicer to the Certificate Account or
thereafter be received with respect to the Mortgage Loans.
Notwithstanding the foregoing, if an Event of Default described in
clause (vi) of this Section 7.01(a) shall occur, the Trustee shall, by notice in
writing to the Master Servicer, which may be delivered by telecopy, immediately
suspend all of the rights and obligations of the Master Servicer thereafter
arising under this Agreement, but without prejudice to any rights it may have as
a Certificateholder or to reimbursement of Monthly P&I Advances and other
advances of its own funds, and the Trustee shall act as provided in Section 7.02
to carry out the duties of the Master Servicer, including the obligation to make
any Monthly P&I Advance the nonpayment of which was an Event of Default
described in clause (vi) of this Section 7.01(a). Any such action taken by the
Trustee must be prior to the distribution on the relevant Distribution Date. If
the Master Servicer shall within two Business Days following such suspension
remit to the Trustee the amount of any Monthly P&I Advance the nonpayment of
which by the Master Servicer was an Event of Default described in clause (vi) of
this Section 7.01(a), the Trustee, subject to the last sentence of this
paragraph, shall permit the Master Servicer to resume its rights and obligations
as Master Servicer hereunder. The Master Servicer agrees that it will reimburse
the Trustee for actual, necessary and reasonable costs incurred by the Trustee
because of action taken pursuant to clause (vi) of this Section 7.01(a). The
Master Servicer agrees that if an Event of Default as described in clause (vi)
of this Section 7.01(a) shall occur more than two times in any twelve month
period, the Trustee shall be under no obligation to permit the Master Servicer
to resume its rights and obligations as Master Servicer hereunder.
(b) In case one or more of the following Events of Default by the
Company shall occur and be continuing, that is to say:
128
(i) Failure on the part of the Company duly to observe or
perform in any material respect any of the covenants or agreements on
the part of the Company contained in the Certificates or in this
Agreement which continues unremedied for a period of 60 days after the
date on which written notice of such failure, requiring the same to be
remedied, shall have been given to the Company by the Trustee, or to
the Company and the Trustee by the Certificate Insurer or the Holders
of Certificates evidencing Percentage Interests aggregating not less
than 25% of the REMIC II Trust Fund; or
(ii) A decree or order of a court or agency or supervisory
authority having jurisdiction in the premises for the appointment of a
trustee in bankruptcy, conservator or receiver or liquidator in any
bankruptcy, 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 Company
and such decree or order shall have remained in force undischarged or
unstayed for a period of 60 days; or
(iii) The Company shall consent to the appointment of a
trustee in bankruptcy, conservator or receiver or liquidator in any
bankruptcy, insolvency, readjustment of debt, marshalling of assets and
liabilities or similar proceedings of or relating to the Company or of
or relating to all or substantially all of its property; or
(iv) The Company shall admit in writing its inability to pay
its debts generally as they become due, file a petition to take
advantage of any applicable bankruptcy, insolvency or reorganization
statute, make an assignment for the benefit of creditors, or
voluntarily suspend payment of its obligations;
then, and in each and every such case, so long as such Event of Default shall
not have been remedied, the Certificate Insurer or the Holders of Certificates
evidencing Percentage Interests aggregating not less than 25% of the REMIC II
Trust Fund, by notice in writing to the Company and the Trustee, may direct the
Trustee in accordance with Section 10.03 to institute an action, suit or
proceeding in its own name as Trustee hereunder to enforce the Company's
obligations hereunder.
(c) In any circumstances in which this Agreement states that
Certificateholders owning Certificates evidencing a certain percentage
Percentage Interest in the REMIC II Trust Fund may take certain action, such
action shall be taken by the Trustee, but only if the requisite percentage of
Certificateholders required under this Agreement for taking like action or
giving like instruction to the Trustee under this Agreement shall have so
directed the Trustee in writing.
Section 7.02. Trustee to Act; Appointment of Successor.
(a) On and after the date on which the Master Servicer receives a
notice of termination pursuant to Section 7.01 or the Master Servicer resigns
pursuant to Section 6.04, the Trustee shall be the successor in all respects to
the Master Servicer under this Agreement and under the Selling and Servicing
Contracts with respect to the Mortgage Loans in the Mortgage Pool and with
respect to 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
129
arising on or after such date of termination or resignation placed on the Master
Servicer by the terms and provisions hereof and thereof, and shall have the same
limitations on liability herein granted to the Master Servicer; provided, that
the Trustee shall not under any circumstances be responsible for any
representations and warranties or any Purchase Obligation of the Company or any
liability incurred by the Master Servicer prior to such date of termination or
resignation and the Trustee shall not be obligated to make a Monthly P&I Advance
if it is prohibited by law from so doing. As compensation therefor, the Trustee
shall be entitled to all funds relating to the Mortgage Loans which the Master
Servicer would have been entitled to retain or to withdraw from the Certificate
Account if the Master Servicer had continued to act hereunder, except for those
amounts due to the Master Servicer as reimbursement for advances previously made
or amounts previously expended and are otherwise reimbursable hereunder.
Notwithstanding the above, the Trustee may, if it shall be unwilling to so act,
or shall if it is unable to so act, appoint, or petition a court of competent
jurisdiction to appoint, any established housing and home finance institution
having a net worth of not less than $10,000,000 as the successor to the Master
Servicer hereunder in the assumption of all or any part of the responsibilities,
duties or liabilities of the Master Servicer hereunder. Pending any such
appointment, the Trustee is obligated to act in such capacity. 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,
together with the compensation to the Trustee, be in excess of that permitted
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.
(b) In connection with any termination or resignation of the Master
Servicer hereunder, in the event that any of the Mortgage Loans are MERS Loans,
either (i) the successor Master Servicer (including the Trustee if the Trustee
is acting as successor Master Servicer) shall represent and warrant that it is a
member of MERS in good standing and shall agree to comply in all material
respects with the rules and procedures of MERS in connection with the servicing
of the MERS Loans, in which case the predecessor Master Servicer shall cooperate
with the successor Master Servicer in registering the transfer of servicing of
the MERS Loans to the successor Master Servicer on the MERS(R) System in
accordance with MERS' rules and procedures, or (ii) if the successor Master
Servicer is not a member of MERS, the predecessor Master Servicer shall
cooperate with the successor Master Servicer in (A) de-registering the MERS
Loans from the MERS(R) System and (B) causing MERS to execute and deliver an
assignment from MERS to the Trustee of the Mortgage securing each MERS Loan in
recordable form and in the form otherwise provided under clause (X)(iii) of the
definition of "Mortgage File" herein and to execute and deliver such other
notices, documents and other instruments as may be necessary or desirable to
effect such de-registration and assignment. The successor Master Servicer shall
promptly cause the assignments referred to in clause (ii)(B) of the immediately
preceding sentence to be recorded or filed, except in states where, in the
opinion of counsel admitted to practice in such state acceptable to the Company,
the Trustee and the Rating Agencies submitted in lieu of such recording or
filing, such recording or filing is not required to protect the Trustee's
interest in such Mortgage Loans against creditors of, or against sale, further
assignments, satisfaction or discharge by, the Lender, a Servicer, the Company
or the Master Servicer. The predecessor Master Servicer shall bear any and all
fees of MERS and all fees and costs of preparing and recording any assignments
of Mortgages as required under this Section 7.02(b).
130
Section 7.03. Notification to Certificateholders. Upon any such
termination or appointment of a successor to the Master Servicer, the Trustee
shall give prompt written notice thereof to the Certificate Insurer and the
Certificateholders at their respective addresses appearing in the Certificate
Register.
ARTICLE VIII
Concerning the Trustee
Section 8.01. Duties of Trustee.
(a) The Trustee, prior to the occurrence of an Event of Default and
after the curing of all Events of Default which may have occurred, undertakes to
perform such duties and only such duties as are specifically set forth in this
Agreement. In case an Event of Default has occurred (which has not 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 its exercise as a
prudent person would exercise or use under the circumstances in the conduct of
such person's own affairs.
(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 in
the form required by this Agreement; provided, however, that the Trustee shall
not be responsible for the accuracy or content of any such certificate,
statement, opinion, report, or other order or instrument furnished by the
Company or Master Servicer to the Trustee pursuant to this Agreement.
(c) 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:
(i) Prior to the occurrence of an Event of Default and after
the curing of all such Events of Default which may have occurred, the
duties and obligations of the Trustee shall be determined solely by the
express provisions of this Agreement,
(ii) the Trustee 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 Trustee, and, in the absence of
bad faith on the part of the Trustee, the Trustee may conclusively
rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon any certificates or opinions furnished
to the Trustee and conforming to the requirements of this Agreement;
and
(iii) The Trustee shall not be personally liable with respect
to any action taken or omitted to be taken by it in good faith in
accordance with the direction of the Certificateholders holding
Certificates which evidence Percentage Interests aggregating not less
than 25% of the REMIC II Trust Fund relating to the time, method and
place of
131
conducting any proceeding for any remedy available to the Trustee, or
relating to the exercise of any trust or power conferred upon the
Trustee under this Agreement.
(d) Within ten days after the occurrence of any Event of Default known
to the Trustee, the Trustee shall transmit by mail to the Certificate Insurer
and the Rating Agencies notice of each Event of Default. Within 90 days after
the occurrence of any Event of Default known to the Trustee, the Trustee shall
transmit by mail to all Certificateholders (with a copy to the Rating Agencies)
notice of each Event of Default, unless such Event of Default shall have been
cured or waived; provided, however, the Trustee shall be protected in
withholding such notice if and so long as a Responsible Officer of the Trustee
in good faith determines that the withholding of such notice is in the best
interests of the Certificateholders; and provided, further, that in the case of
any Event of Default of the character specified in Section 7.01(i) and Section
7.01(ii) no such notice to Certificateholders or to the Rating Agencies shall be
given until at least 30 days after the occurrence thereof.
(e) The Trustee acknowledges that it is named as the "insured" under
the Surety Bonds and acknowledges that the Master Servicer has agreed, pursuant
to Section 3.18 hereof, to perform the obligations of the Trustee under the
Surety Bonds on behalf of the Trustee. Each of the Trustee and the Master
Servicer hereby covenants not to cancel the Surety Bonds until the Trust Fund is
terminated in accordance with the provisions hereof.
Section 8.02. Certain Matters Affecting the Trustee. Except as
otherwise provided in Section 8.01:
(i) The Trustee may request and rely upon and shall be
protected in acting or refraining from acting upon any resolution,
Officer's Certificate, certificate of auditors or any other
certificate, statement, instrument, opinion, report, notice, request,
consent, order, 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 Opinion of
Counsel shall be full and complete authorization and protection in
respect of any action taken or suffered or omitted by it hereunder in
good faith and in accordance with such Opinion of Counsel;
(iii) The Trustee shall not be personally liable for any
action taken 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) Prior to the occurrence of an Event of Default hereunder
and after the curing of all Events of Default which may have occurred,
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, unless requested in writing to do so
by the Holders of Certificates evidencing Percentage Interests
aggregating not less than 25% of the REMIC II Trust Fund; 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
132
such investigation is, in the opinion of the Trustee, not reasonably
assured to the Trustee by the security, if any, afforded to it by the
terms of this Agreement, the Trustee may require reasonable indemnity
against such expense or liability as a condition to proceeding;
(v) The Trustee may execute the trust or any of the powers
hereunder or perform any duties hereunder either directly or by or
through agents or attorneys;
(vi) The Trustee shall not be deemed to have knowledge or
notice of any matter, including without limitation an Event of Default,
unless actually known by a Responsible Officer, or unless written
notice thereof referencing this Agreement or the Certificates is
received at the Corporate Trust Office at the address set forth in
Section 10.06;
(vii) In no event shall the Trustee be held liable for acts or
omissions of the Master Servicer (excepting the Trustee's own actions
as Master Servicer). No provision of this Agreement shall require the
Trustee to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties hereunder
(except for the giving of required notices), or in the exercise of any
of its rights or powers, if it shall have reasonable grounds for
believing the repayment of such funds or adequate indemnity against
such risk or liability is not reasonably assured to it; and
(viii) When the Trustee is acting as Master Servicer pursuant
to Section 7.02, and to the extent permitted under applicable law, the
Trustee is hereby authorized, in making or disposing of any investment
permitted hereunder, to deal with itself (in its individual capacity)
or with any one or more of its affiliates, whether it or its affiliate
is acting as an agent of the Trustee or of any third person or dealing
as principal for its own account.
Section 8.03. Trustee Not Liable for Certificates or Mortgage Loans.
The recitals contained herein (other than those relating to the due
organization, power and authority of the Trustee) and in the Certificates (other
than the execution of, and certificate of authentication on, the Certificates)
shall be taken as the statements of the Company and the Trustee assumes no
responsibility for their correctness. The Trustee makes no representations as to
the validity or sufficiency of this Agreement or of the Certificates or any
Mortgage Loan. The Trustee shall not be accountable for the use or application
by the Company of any of the Certificates or of the proceeds of such
Certificates, or for the use or application of any funds paid to the Master
Servicer, the Servicers or the Company in respect of the Mortgage Loans or
deposited into the Custodial Accounts for P&I, any Buydown Fund Account, or the
Custodial Accounts for P&I by any Servicer or into the Investment Account, or
the Certificate Account by the Master Servicer or the Company.
Section 8.04. Trustee May Own Certificates. The Trustee or any agent or
affiliate of the Trustee, in its individual or any other capacity, may become
the owner or pledgee of Certificates with the same rights it would have if it
were not Trustee.
133
Section 8.05. The Master Servicer to Pay Trustee's Fees and Expenses.
Subject to any separate written agreement with the Trustee, the Master Servicer
covenants and agrees to, and the Master Servicer shall, pay the Trustee from
time to time, and the Trustee shall be entitled to payment, for all services
rendered by it in the execution of the trust hereby created and in the exercise
and performance of any of the powers and duties hereunder of the Trustee. Except
as otherwise expressly provided herein, the Master Servicer shall pay or
reimburse the Trustee upon the Trustee's request for all reasonable expenses and
disbursements incurred or made by the Trustee in accordance with any of the
provisions of this Agreement and indemnify the Trustee from any loss, liability
or expense incurred by it hereunder (including the reasonable compensation and
the expenses and disbursements of its counsel and of all persons not regularly
in its employ) except any such expense or disbursement as may arise from its
negligence or bad faith. Such obligation shall survive the termination of this
Agreement or resignation or removal of the Trustee. The Company shall, at its
expense, prepare or cause to be prepared all federal and state income tax and
franchise tax and information returns relating to the REMIC I Trust Fund or the
REMIC II Trust Fund required to be prepared or filed by the Trustee and shall
indemnify the Trustee for any liability of the Trustee arising from any error in
such returns.
Section 8.06. Eligibility Requirements for Trustee. The Trustee
hereunder shall at all times be (i) an institution insured by the FDIC, (ii) a
corporation or association organized and doing business under the laws of the
United States of America or of any state, 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) acceptable to the Rating Agencies. If such corporation or
association publishes reports of condition at least annually, pursuant to law or
to the requirements of any aforementioned supervising or examining authority,
then for the purposes of this Section 8.06, the combined capital and surplus of
such corporation 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 the provisions of this
Section 8.06, the Trustee shall resign immediately in the manner and with the
effect specified in Section 8.07.
Section 8.07. Resignation and Removal of Trustee. The Trustee may at
any time resign and be discharged from the trusts hereby created by giving
written notice thereof to the Master Servicer and the Certificate Insurer. Upon
receiving such notice of resignation, the Master Servicer shall promptly appoint
a successor trustee by written instrument, in duplicate, one copy of which
instrument shall be delivered to the resigning Trustee and one copy to the
successor trustee. 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.
If at any time the Trustee shall cease to be eligible in accordance
with the provisions of Section 8.06 and shall fail to resign after written
request therefor by the Master Servicer, or if at any time the Trustee shall
become incapable of acting, or shall be adjudged 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, then the
Master Servicer may remove the Trustee and appoint a successor trustee by
written instrument, in duplicate, one copy of which instrument
134
shall be delivered to the Trustee so removed, one copy to the successor and one
copy to the Certificate Insurer.
The Holders of Certificates evidencing Percentage Interests aggregating
more than 50% of the REMIC II Trust Fund may at any time remove the Trustee and
appoint a successor trustee by written instrument or instruments, in triplicate,
signed by such Holders or their attorneys in-fact duly authorized, one complete
set of which instruments shall be delivered to the Master Servicer, one complete
set to the Trustee so removed and one complete set to the successor so
appointed.
Any resignation or removal of the Trustee and appointment of a
successor trustee pursuant to any of the provisions of this Section 8.07 shall
become effective upon acceptance of appointment by the successor trustee as
provided in Section 8.08. Any expenses associated with the resignation of the
Trustee shall be borne by the Trustee, and any expenses associated with the
removal of the Trustee shall be borne by the Master Servicer. As long as the
Certificate Insurance Policy is in effect, the Master Servicer will send a
written notice to the Certificate Insurer of any such resignation, removal or
appointment.
Section 8.08. Successor Trustee. Any successor trustee appointed as provided in
Section 8.07 shall execute, acknowledge and deliver to the Master Servicer 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 shall deliver to the successor trustee
all Mortgage Files, related documents, statements and all other property held by
it hereunder, and the Master Servicer and the predecessor trustee shall execute
and deliver such instruments and do such other things as may reasonably be
required for more fully and certainly vesting and confirming in the successor
trustee all such rights, powers, duties and obligations.
No successor trustee shall accept appointment as provided in this
Section 8.08 unless at the time of such appointment such successor trustee shall
be eligible under the provisions of Section 8.06.
Upon acceptance of appointment by a successor trustee as provided in
this Section 8.08, the Master Servicer shall mail notice of the succession of
such trustee hereunder to (i) all Certificateholders at their addresses as shown
in the Certificate Register, (ii) the Rating Agencies and (iii) the Certificate
Insurer. If the Master Servicer fails to mail such notice within ten days after
acceptance of appointment by the successor trustee, the successor trustee shall
cause such notice to be mailed.
Section 8.09. Merger or Consolidation of Trustee. Any corporation or
association into which the Trustee may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Trustee shall be a party, or any corporation
succeeding to the corporate trust business of the Trustee, shall be the
successor of the Trustee hereunder, provided such resulting or successor
corporation shall be eligible under the provisions of Section 8.06, without the
execution or filing of any paper or any
135
further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding.
Section 8.10. Appointment of Co-Trustee or Separate Trustee.
Notwithstanding any other provisions hereof, at any time, for the purpose of
meeting any legal requirements of any jurisdiction in which any part of the
REMIC I Trust Fund or the REMIC II Trust Fund may at the time be located, the
Master Servicer and the Trustee acting jointly shall have the power and shall
execute and deliver all instruments to appoint one or more Persons approved by
the Trustee to act as co-trustee or co-trustees, jointly with the Trustee, or
separate trustee or separate trustees, of all or any part of the REMIC I Trust
Fund or the REMIC II Trust Fund and to vest in such Person or Persons, in such
capacity, such title to the REMIC I Trust Fund or the REMIC II Trust Fund, or
any part thereof, and, subject to the other provisions of this Section 8.10,
such powers, duties, obligations, rights and trusts as the Master Servicer and
the Trustee may consider necessary or desirable; provided, that the Trustee
shall remain liable for all of its obligations and duties under this Agreement.
If the Master Servicer shall not have joined in such appointment within 15 days
after the receipt by it of a request so to do, or in case an Event of Default
shall have occurred and be continuing, the Trustee alone shall have the power to
make such appointment; provided, that the Trustee shall remain liable for all of
its obligations and duties under this Agreement. No co-trustee or separate
trustee hereunder shall be required to meet the terms of eligibility as a
successor trustee under Section 8.06 hereunder and no notice to
Certificateholders of the appointment of co-trustee(s) or separate trustee(s)
shall be required under Section 8.08 hereof.
In the case of any appointment of a co-trustee or separate trustee
pursuant to this Section 8.10, all 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 or co-trustee
jointly and severally, except to the extent that under any law of any
jurisdiction in which any particular act or acts are to be performed by the
Trustee (whether as Trustee hereunder or as successor to the Master Servicer
hereunder), the Trustee shall be incompetent or unqualified to perform such act
or acts, in which event such rights, powers, duties and obligations (including
the holding of title to the REMIC I Trust Fund or the REMIC II Trust Fund or any
portion thereof in any such jurisdiction) shall be exercised and performed by
such separate trustee or co-trustee at the direction of the Trustee.
Any notice, request or other writing given to the Trustee shall be
deemed to have been given to each of the then separate trustee(s) and
co-trustee(s), as effectively as if given to each of them. Every instrument
appointing any separate trustee(s) or co-trustee(s) shall refer to this
Agreement and the conditions of this Article VIII. Each separate trustee and
co-trustee, upon its acceptance of the trusts conferred, shall be vested with
the estates or property specified in its instrument of appointment, either
jointly with the Trustee or separately, as may be provided therein, subject to
all the provisions of this Agreement, specifically including every provision of
this Agreement relating to the conduct of, affecting the liability of, or
affording protection to, the Trustee. Every such instrument shall be filed with
the Trustee.
Any separate trustee or co-trustee may, at any time, constitute the
Trustee its agent or attorney-in-fact, with full power and authority, to the
extent not prohibited by law, to do any lawful act under or in respect of this
Agreement on its behalf and in its name. If any separate
136
trustee or co-trustee shall die, become incapable of acting, resign or be
removed, all of its estates, properties, rights, remedies and the trust shall
vest in and be exercised by the Trustee, to the extent permitted by law, without
the appointment of a new or successor trustee.
Section 8.11. Authenticating Agents. 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 acceptable to the Master
Servicer and the Certificate Insurer and must be a corporation, trust company or
banking association organized and doing business under the laws of the United
States of America or of any state, having a principal office and place of
business in New York, New York or a principal office and place of business in
Boston, Massachusetts and a place of business in New York, New York, 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.
Any corporation into which any Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which any Authenticating Agent
shall be a party, or any corporation succeeding to the corporate agency business
of any Authenticating Agent, shall continue to be the Authenticating Agent so
long as it shall be eligible in accordance with the provisions of the first
paragraph of this Section 8.11 without the execution or filing of any paper or
any further act on the part of the Trustee or the Authenticating Agent.
Any Authenticating Agent may at any time resign by giving written
notice of resignation to the Trustee, the Certificate Insurer and the Master
Servicer. The Trustee may, upon prior written approval of the Master Servicer
and the Certificate Insurer, at any time terminate the agency of any
Authenticating Agent by giving written notice of termination to such
Authenticating Agent and to the Master Servicer. 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 the first paragraph of this Section 8.11, the Trustee may appoint,
upon prior written approval of the Master Servicer and the Certificate Insurer,
a successor Authenticating Agent, shall give written notice of such appointment
to the Master Servicer and shall mail notice of such appointment to all
Certificateholders. 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. Any reasonable compensation paid to an
Authenticating Agent shall be a reimbursable expense pursuant to Section 8.05 if
paid by the Trustee.
Section 8.12. Paying Agents. The Trustee may appoint one or more Paying
Agents which shall be authorized to act on behalf of the Trustee in making
withdrawals from the Certificate Account, and distributions to
Certificateholders as provided in Section 4.01, Section 4.04(a) and Section
9.01(b) to the extent directed to do so by the Master Servicer. Wherever
reference is made in this Agreement to the withdrawal from the Certificate
Account by the
137
Trustee, such reference shall be deemed to include such a withdrawal on behalf
of the Trustee by a Paying Agent. Whenever reference is made in this Agreement
to a distribution by the Trustee or the furnishing of a statement to
Certificateholders by the Trustee, such reference shall be deemed to include
such a distribution or furnishing on behalf of the Trustee by a Paying Agent.
Each Paying Agent shall provide to the Trustee such information concerning the
Certificate Account as the Trustee shall request from time to time. Each Paying
Agent must be reasonably acceptable to the Master Servicer and the Certificate
Insurer and must be a corporation, trust company or banking association
organized and doing business under the laws of the United States of America or
of any state, having a principal office and place of business in New York, New
York or a principal office and place of business in Boston, Massachusetts and a
place of business in New York, New York, 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.
Any corporation into which any Paying Agent may be merged or converted
or with which it may be consolidated, or any corporation resulting from any
merger, conversion or consolidation to which any Paying Agent shall be a party,
or any corporation succeeding to the corporate agency business of any Paying
Agent, shall continue to be the Paying Agent provided that such corporation
after the consummation of such merger, conversion, consolidation or succession
meets the eligibility requirements of this Section 8.12.
Any Paying Agent may at any time resign by giving written notice of
resignation to the Trustee and to the Master Servicer; provided, that the Paying
Agent has returned to the Certificate Account or otherwise accounted, to the
reasonable satisfaction of the Master Servicer and the Certificate Insurer, for
all amounts it has withdrawn from the Certificate Account. The Trustee may, upon
prior written approval of the Master Servicer and the Certificate Insurer, at
any time terminate the agency of any Paying Agent by giving written notice of
termination to such Paying Agent and to the Master Servicer. Upon receiving a
notice of resignation or upon such a termination, or in case at any time any
Paying Agent shall cease to be eligible in accordance with the provisions of the
first paragraph of this Section 8.12, the Trustee may appoint, upon prior
written approval of the Master Servicer and the Certificate Insurer, a successor
Paying Agent, shall give written notice of such appointment to the Master
Servicer and shall mail notice of such appointment to all Certificateholders.
Any successor Paying 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 Paying Agent.
Any reasonable compensation paid to any Paying Agent shall be a reimbursable
expense pursuant to Section 8.05 if paid by the Trustee.
ARTICLE IX
Termination
Section 9.01. Termination Upon Purchase by the Master Servicer or
Liquidation of All Mortgage Loans.
(a) Except as otherwise set forth in this Article IX, including,
without limitation, the obligation of the Master Servicer to make payments to
Certificateholders as hereafter set forth,
138
the respective obligations and responsibilities of the Company, the Master
Servicer and the Trustee created hereby shall terminate upon (i) the purchase by
the Master Servicer pursuant to the following paragraph of this Section 9.01(a)
of all Mortgage Loans and all property acquired in respect of any Mortgage Loan
remaining in the Trust Fund at a price equal, after the deduction of related
advances, to the sum of (x) the excess of (A) 100% of the aggregate outstanding
Principal Balance of such Mortgage Loans (other than Liquidated Mortgage Loans)
plus accrued interest at the applicable Pass-Through Rate with respect to such
Mortgage Loan (other than a Liquidated Mortgage Loan) through the last day of
the month of such purchase, over (B) with respect to any Mortgage Loan which is
not a Liquidated Mortgage Loan, the amount of the Bankruptcy Loss incurred with
respect to such Mortgage Loan as of the date of such purchase by the Master
Servicer to the extent that the Principal Balance of such Mortgage Loan has not
been previously reduced by such Bankruptcy Loss, and (y) the appraised fair
market value as of the effective date of the termination of the trust created
hereby of (A) all property in the Trust Fund which secured a Mortgage Loan and
which was acquired by foreclosure or deed in lieu of foreclosure after the
Cut-Off Date, including related Insurance Proceeds, and (B) all other property
in the Trust Fund, any such appraisal to be conducted by an appraiser mutually
agreed upon by the Master Servicer, the Trustee and the Certificate Insurer, or
(ii) the later of the final payment or other liquidation (or any advance with
respect thereto) of the last Mortgage Loan remaining in the Trust Fund or the
disposition of all property acquired upon foreclosure in respect of any Mortgage
Loan, and the payment to the Certificateholders and the Certificate Insurer of
all amounts required to be paid to them hereunder; provided, however, that in no
event shall the trusts created hereby continue beyond the expiration of 21 years
from the death of the survivor of the issue of Xxxxxx X. Xxxxxxx, the late
ambassador of the United States to the Court of St. Xxxxx, living on the date
hereof.
On any Distribution Date after the first date on which the aggregate
Principal Balance of the Mortgage Loans is less than the Clean-Up Call
Percentage of the aggregate Principal Balance of the Mortgage Loans as of the
Cut-Off Date, the Master Servicer may, unless the exercise of the purchase would
result in a claim under the Certificate Insurance Policy, purchase the
outstanding Mortgage Loans and any Mortgaged Properties acquired by the Trust
Fund at the price stated in clause (i) of the preceding paragraph. If such right
is exercised, the Master Servicer shall provide to the Trustee and the
Certificate Insurer (and to the Master Servicer, if the Company is no longer
acting as Master Servicer) the written certification of an officer of the Master
Servicer (which certification shall include a statement to the effect that all
amounts required to be paid in order to purchase the Mortgage Loans have been
deposited in the Certificate Account) and the Trustee shall promptly execute all
instruments as may be necessary to release and assign to the Master Servicer the
Mortgage Files and any foreclosed Mortgaged Property pertaining to the Trust
Fund.
In no event shall the Master Servicer be required to expend any amounts
other than those described in the first paragraph of this Section 9.01(a) in
order to terminate the Trust Fund or purchase the Mortgage Loans under this
Section 9.01, and in no event shall the Company be required to expend any
amounts in connection with such termination or purchase.
(b) Notice of any termination, specifying the date upon which the
Certificateholders may surrender their Certificates to the Trustee for payment
and cancellation, shall be given promptly by letter from the Trustee to
Certificateholders mailed not less than 30 days prior to
139
such final distribution, specifying (i) the date upon which final payment of the
Certificates will be made upon presentation and surrender of Certificates at the
office of the Certificate Registrar therein designated (the "Termination Date"),
(ii) the amount of such final payment (the "Termination Payment") and (iii) that
the Record Date otherwise applicable to the Distribution Date upon which the
Termination Date occurs is not applicable, payments being made only upon
presentation and surrender of the Certificates at the office of the Certificate
Registrar therein specified. Upon any such notice, the Certificate Account shall
terminate subject to the Master Servicer's obligation to hold all amounts
payable to Certificateholders in trust without interest pending such payment.
In the event that all of the Certificateholders shall not surrender
their Certificates for cancellation within six months after the Termination
Date, the Master Servicer shall give a second written notice to the remaining
Certificateholders to surrender their Certificates for cancellation and receive
the Termination Payment with respect thereto. If within one year after the
second notice all the Certificates shall not have been surrendered for
cancellation, the Master Servicer may take appropriate steps to contact the
remaining Certificateholders concerning surrender of their Certificates, and the
cost thereof shall be paid out of the funds and other assets which remain in
trust hereunder.
Section 9.02. Additional Termination Requirements.
(a) In the event the Master Servicer exercises its purchase option as
provided in Section 9.01, the REMIC I Trust Fund and the REMIC II Trust Fund
shall be terminated in accordance with the following additional requirements,
unless the Master Servicer, at its own expense, obtains for the Trustee and the
Certificate Insurer an Opinion of Counsel to the effect that the failure of the
REMIC I Trust Fund and the REMIC II Trust Fund to comply with the requirements
of this Section 9.02 will not (i) result in the imposition of taxes on
"prohibited transactions" of the REMIC I Trust Fund and the REMIC II Trust Fund
as described in Section 860F of the Code, or (ii) cause the REMIC I Trust Fund
or the REMIC II Trust Fund to fail to qualify as a REMIC at any time that any
Certificates are outstanding:
(i) Within 90 days prior to the final Distribution Date set
forth in the notice given by the Trustee under Section 9.01, the Tax
Matters Person shall prepare the documentation required and the Tax
Matters Person and the Trustee shall adopt a plan of complete
liquidation on behalf of the REMIC I Trust Fund and the REMIC II Trust
Fund meeting the requirements of a qualified liquidation under Section
860F of the Code and any regulations thereunder, as evidenced by an
Opinion of Counsel obtained at the expense of the Master Servicer, on
behalf of the REMIC I Trust Fund and the REMIC II Trust Fund; and
(ii) At or after the time of adoption of such a plan of
complete liquidation and at or prior to the final Distribution Date,
the Master Servicer as agent of the Trustee shall sell all of the
assets of the REMIC I Trust Fund and the REMIC II Trust Fund to the
Master Servicer for cash in the amount specified in Section 9.01.
(b) By its acceptance of any Residual Certificate, the Holder thereof
hereby agrees to authorize the Tax Matters Person and the Trustee to adopt such
a plan of complete liquidation
140
upon the written request of the Tax Matters Person and the Trustee and to take
such other action in connection therewith as may be reasonably requested by the
Tax Matters Person or the Trustee.
Section 9.03. Trusts Irrevocable. Except as expressly provided herein,
the trusts created hereby are irrevocable.
ARTICLE X
Miscellaneous Provisions
Section 10.01. Amendment.
(a) This Agreement may be amended from time to time by the Master
Servicer, the Company and the Trustee, without the consent of any of the
Certificateholders but with the prior written consent of the Certificate Insurer
with respect to any amendment that adversely affects the interests of any of the
Holders of the Insured Certificates: (i) to cure any ambiguity; (ii) to correct
or supplement any provision herein which may be defective or inconsistent with
any other provisions herein; (iii) to comply with any requirements imposed by
the Code or any regulations thereunder; (iv) to correct the description of any
property at any time included in the REMIC I Trust Fund or the REMIC II Trust
Fund, or to assure the conveyance to the Trustee of any property included in the
REMIC I Trust Fund or the REMIC II Trust Fund; and (v) pursuant to Section
5.01(c)(v). No such amendment (other than one entered into pursuant to clause
(iii) of the preceding sentence) shall adversely affect in any material respect
the interest of any Certificateholder, and no such amendment shall change the
powers of the Master Servicer. Prior to entering into any amendment without the
consent of Certificateholders pursuant to this paragraph, the Trustee may
require an Opinion of Counsel to the effect that such amendment is permitted
under this paragraph. The placement of an "original issue discount" legend on,
or any change required to correct any such legend previously placed on a
Certificate shall not be deemed any amendment to this Agreement.
(b) This Agreement may also be amended from time to time by the Master
Servicer, the Company and the Trustee with the consent of the Certificate
Insurer and the Holders of Certificates evidencing Percentage Interests
aggregating not less than 66% of the REMIC II Trust Fund 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
Certificateholders; provided, however, that no such amendment shall, without the
consent of the Holder of each Certificate affected thereby (i) reduce in any
manner the amount of, or delay the timing of, distributions of principal or
interest required to be made hereunder or reduce the Certificateholder's
Percentage Interest, the Certificate Interest Rate or the Termination Payment
with respect to any of the Certificates, (ii) reduce the percentage of
Percentage Interests specified in this Section 10.01 which are required to amend
this Agreement, (iii) create or permit the creation of any lien against any part
of the REMIC I Trust Fund or the REMIC II Trust Fund, or (iv) modify any
provision in any way which would permit an earlier retirement of the
Certificates.
141
Promptly after the execution of any such amendment, the Trustee shall
furnish written notification of the substance of such amendment to each
Certificateholder and the Certificate Insurer. Any failure to provide such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such amendment.
It shall not be necessary for the consent of Certificateholders under
this Section 10.01 to approve the particular form of any proposed amendment, but
it shall be sufficient if such consent shall approve the substance thereof. The
manner of obtaining such consents and of evidencing the authorization of the
execution thereof by Certificateholders shall be subject to such reasonable
regulations as the Trustee may prescribe.
Section 10.02. Recordation of Agreement. To the extent permitted by
applicable law, this Agreement is subject to recordation in all appropriate
public offices for real property records in all the counties or the comparable
jurisdictions in which any Mortgaged Property is situated, and in any other
appropriate public recording office or elsewhere, such recordation to be
effected by the Company and at its expense on direction by the Trustee, but only
upon direction accompanied by an Opinion of Counsel to the effect that such
recordation materially and beneficially affects the interests of the
Certificateholders and the Certificate Insurer. Without limiting the foregoing,
the Trustee shall make the filings required by Chapter 182 of the Massachusetts
General Laws.
Section 10.03. Limitation on Rights of Certificateholders. The death or
incapacity of any Certificateholder shall not operate to terminate this
Agreement, the REMIC I Trust Fund or REMIC II Trust Fund, nor entitle such
Certificateholder's legal representatives or heirs to claim an accounting or to
take any action or proceeding in any court for a partition or winding-up of the
REMIC I Trust Fund or the REMIC II Trust Fund, nor otherwise affect the rights,
obligations and liabilities of the parties hereto or any of them.
No Certificateholder shall have any right to vote or in any manner
otherwise to control the operation and management of the REMIC I Trust Fund or
the REMIC II Trust Fund or the obligations of the parties hereto (except as
provided in Section 5.09, Section 7.01, Section 8.01, Section 8.02, Section
8.07, Section 10.01 and this Section 10.03), 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.
No 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 default
and of the continuance thereof, as hereinbefore provided, and unless also the
Holders of Certificates evidencing Percentage Interests aggregating not less
than 25% of the REMIC II Trust Fund 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 costs, expenses and liabilities to be incurred therein
or thereby, and the Trustee, for 60 days after its receipt of such notice,
request and offer of indemnity, shall have neglected or refused to institute any
such action, suit
142
or proceeding. However, the Trustee is under no obligation to exercise any of
the extraordinary trusts or powers vested in it by this Agreement or to make any
investigation of matters arising hereunder or to institute, conduct or defend
any litigation hereunder or in relation hereto at the request, order or
direction of any of the Certificateholders unless such Certificateholders have
offered to the Trustee reasonable security or indemnity against the costs,
expenses and liabilities which may be incurred therein or thereby. It is
understood and intended, and 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
equal, ratable and common benefit of all Certificateholders. For the protection
and enforcement of the provisions of this Section 10.03, each and every
Certificateholder and the Trustee shall be entitled to such relief as can be
given either at law or in equity.
By accepting its Insured Certificate, each Insured Certificateholder
agrees that, unless a Certificate Insurer Default exists and is continuing, the
Certificate Insurer shall have the right to exercise all rights of the Insured
Certificateholders under this Agreement (other than (i) the right to receive
distributions on the Insured Certificates, except as provided in Section 3.21
and (ii) the right to receive statements and reports hereunder) without any
further consent of the Insured Certificateholders and the Insured
Certificateholders shall exercise any such rights only upon the written consent
of the Certificate Insurer. Notwithstanding the foregoing, the Certificate
Insurer shall have no power without the consent of the Owner of each Certificate
affected thereby to: (i) reduce in any manner the amount of, or delay the timing
of, distributions of principal or interest required to be made hereunder or
reduce the Insured Certificateholder's Percentage Interest, the Certificate
Interest Rate or the Termination Payment with respect to any of the Insured
Certificates; (ii) reduce the percentage of Percentage Interests specified in
Section 10.01 which are required to amend this Agreement; (iii) create or permit
the creation of any lien against any part of the Trust Fund; (iv) modify any
provision in any way which would permit an earlier retirement of the Insured
Certificates; or (v) amend this sentence
Section 10.04. Access to List of Certificateholders. The Certificate
Registrar shall furnish or cause to be furnished to the Trustee, within 30 days
after receipt 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 as of the most recent Record Date for payment of
distributions to such Certificateholders.
If three or more Certificateholders (hereinafter referred to as
"applicants") apply in writing to the Trustee, and such application states that
the applicants desire to communicate with other Certificateholders 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 list from the Certificate Registrar, afford such applicants access during
normal business hours to the most recent list of Certificateholders held by the
Trustee. If such a list is as of a date more than 90 days prior to the date of
receipt of such applicants' request, the Trustee shall promptly request
143
from the Certificate Registrar a current list as provided above, and shall
afford such applicants access to such list promptly upon receipt.
Every Certificateholder, by receiving and holding the same, agrees with
the Master Servicer and the Trustee that neither the Master Servicer nor 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 10.05. Governing Law. This Agreement shall be construed in
accordance with the laws of the State of New York and the obligations, rights
and remedies of the parties hereunder shall be determined in accordance with
such laws without giving effect to conflict of laws principles.
Section 10.06. Notices. All demands, notices and communications
hereunder shall be in writing and shall be deemed to have been duly given if
personally delivered at or mailed by registered or certified mail to the
applicable Notice Address. Notices to the Rating Agencies shall also be deemed
to have been duly given if mailed by first class mail, postage prepaid, to the
above listed addresses of the Rating Agencies. Any notice required or permitted
to be mailed to a Certificateholder shall be given by first class mail, postage
prepaid, at the address of such Holder as shown in the Certificate Register. Any
notice so mailed within the time prescribed in this Agreement shall be
conclusively presumed to have been duly given, whether or not the
Certificateholder receives such notice.
Section 10.07. 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 10.08. Counterpart Signatures. For the purpose of facilitating
the recordation of this Agreement as herein provided and for other purposes,
this Agreement may be executed simultaneously in any number of counterparts,
each of which counterparts shall be deemed to be an original, and such
counterparts shall constitute but one and the same instrument.
Section 10.09. Benefits of Agreement. Nothing in this Agreement or in
any Certificate, expressed or implied, shall give to any Person, other than the
parties hereto and their respective successors hereunder, any separate trustee
or co-trustee appointed under Section 8.10 and the Certificateholders, any
benefit or any legal or equitable right, remedy or claim under this Agreement.
The Certificate Insurer is a third-party beneficiary of this Agreement.
Any right conferred to the Certificate Insurer shall be suspended after the
occurrence and during the continuation of a Certificate Insurer Default. During
any period of suspension, the Certificate Insurer's rights hereunder shall vest
in the Holders of the Insured Certificates (to the extent such Holders otherwise
has such rights hereunder). At such time as the Class Principal Balance of the
144
Insured Certificates has been reduced to zero and the Certificate Insurer has
been reimbursed for all amounts to which it is entitled hereunder and has been
paid all Certificate Insurer Premium amounts due and owing hereunder, the
Certificate Insurer's rights hereunder shall terminate.
Section 10.10. Notices and Copies to Rating Agencies.
(a) The Trustee shall notify the Rating Agencies and the Certificate
Insurer of the occurrence of any of the following events, in the manner provided
in Section 10.06:
(i) the occurrence of an Event of Default pursuant to Section
7.01, subject to the provisions of Section 8.01(d);
(ii) the appointment of a successor Master Servicer pursuant
to Section 7.02;
(b) The Master Servicer shall notify the Rating Agencies and the
Certificate Insurer of the occurrence of any of the following events, or in the
case of clauses (iii), (iv), (vii) and (viii) promptly upon receiving notice
thereof, in the manner provided in Section 10.06:
(i) any amendment of this Agreement pursuant to Section 10.01;
(ii) the appointment of a successor Trustee pursuant to
Section 8.08;
(iii) the filing of any claim under or the cancellation or
modification of any fidelity bond and errors and omissions coverage
pursuant to Section 3.01 and Section 3.06 with respect to the Master
Servicer or any Servicer;
(iv) any change in the location of the Certificate Account,
any Custodial Account for P&I or any Custodial Account for Reserves;
(v) the purchase of any Mortgage Loan pursuant to a Purchase
Obligation or as permitted by this Agreement or the purchase of the
outstanding Mortgage Loans pursuant to Section 9.01;
(vi) the occurrence of the final Distribution Date or the
termination of the trust pursuant to Section 9.01(a)(ii);
(vii) the failure of the Master Servicer to make a Monthly P&I
Advance following a determination on the Determination Date that the
Master Servicer would make such advance pursuant to Section 4.02; and
(viii) the failure of the Master Servicer to make a
determination on the Determination Date regarding whether it would make
a Monthly P&I Advance when a shortfall exists between (x) payments
scheduled to be received in respect of the Mortgage Loans and (y) the
amounts actually deposited in the Certificate Account on account of
such payments, pursuant to Section 4.02.
The Master Servicer shall provide copies of the statements pursuant to Section
4.02, Section 4.05, Section 3.12, Section 3.13 or Section 3.15 or any other
statements or reports to the Rating
145
Agencies in such time and manner that such statements or determinations are
required to be provided to Certificateholders. With respect to the reports
described in the second paragraph of Section 4.05, the Master Servicer shall
provide such reports to the Rating Agencies in respect of each Distribution
Date, without regard to whether any Certificateholder or the Trustee has
requested such report for such Distribution Date.
146
IN WITNESS WHEREOF, the Company and the Trustee have caused their names
to be signed hereto by their respective officers, thereunto duly authorized, and
their respective seals, duly attested, to be hereunto affixed, all as of the day
and year first above written.
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
By: /s/ Xxxxxxx X. Xxxxxx
---------------------------------------
Its: President
STATE STREET BANK AND TRUST COMPANY,
as Trustee
By: /s/ Xxxxx X. X'Xxxxx
---------------------------------------
Its: Vice President
ACKNOWLEDGEMENT OF CORPORATION
STATE OF WASHINGTON )
) SS.
COUNTY OF KING )
I certify that I know or have satisfactory evidence that Xxxxxxx X.
Xxxxxx is the person who appeared before me, and said person acknowledged that
he signed this instrument, on oath stated that he was authorized to execute the
instrument and acknowledged it as the President of WASHINGTON MUTUAL MORTGAGE
SECURITIES CORP., to be the free and voluntary act of such part for the uses and
purposes mentioned therein.
Dated this 25th day of July, 2001
/s/ Xxxxxxxxx Xxx Xxxxxxx
---------------------------------------
Notary Public in and for the
State of Washington, residing
at Bremerton, Washington.
My commission expires:
May 3, 2005.
(SEAL)
ACKNOWLEDGEMENT
COMMONWEALTH OF MASSACHUSETTS )
) SS.
COUNTY OF SUFFOLK )
On this 30th day of July 2001 before me, a Notary Public in and for
said State, personally appeared Xxxxx X. X'Xxxxx, personally known to me (or
proved to me on the basis of satisfactory evidence) to be the person(s) whose
name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacit(ies), and that
by his/her/their signature(s) on the instrument the person(s), or the entity
upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Signature /s/ Xxxxxx Xxxxxxx
-------------------------
(SEAL)
Exhibit A
CUSIP 939335 NX9
WaMu MORTGAGE PASS-THROUGH CERTIFICATE
Class I-A-1
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class I-A-1 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $193,536,000.00
Class I-A-1 Certificate Interest Rate: 6.500%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2016
Class I-A-1 Principal Balance
as of the Cut-Off Date: $193,536,000.00
Cede & Co.
Registered Owner
A-1
Exhibit A
CUSIP 939335 NY7
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-A-1
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-A-1 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $67,739,000.00
Class II-A-1 Certificate Interest Rate: 5.750%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-A-1 Principal Balance
as of the Cut-Off Date: $67,739,000.00
Cede & Co.
Registered Owner
A-2
Exhibit A
CUSIP 939335 NZ4
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-A-2
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-A-2 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $82,000,000.00
Class II-A-2 Certificate Interest Rate: 6.000%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-A-2 Principal Balance
as of the Cut-Off Date: $82,000,000.00
Cede & Co.
Registered Owner
A-3
Exhibit A
CUSIP 939335 PA7
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-A-3
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-A-3 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $5,000,000.00
Class II-A-3 Certificate Interest Rate: 7.000%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-A-3 Principal Balance
as of the Cut-Off Date: $5,000,000.00
Cede & Co.
Registered Owner
A-4
Exhibit A
CUSIP 939335 PB5
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-A-4
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-A-4 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $5,000,000.00
Class II-A-4 Certificate Interest Rate: 7.000%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-A-4 Principal Balance
as of the Cut-Off Date: $5,000,000.00
Cede & Co.
Registered Owner
A-5
Exhibit A
CUSIP 939335 PC3
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-A-5
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-A-5 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $1,500,000.00
Class II-A-5 Certificate Interest Rate: 7.000%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-A-5 Principal Balance
as of the Cut-Off Date: $1,500,000.00
Cede & Co.
Registered Owner
A-6
Exhibit A
CUSIP 939335 PD1
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-A-6
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-A-6 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $1,500,000.00
Class II-A-6 Certificate Interest Rate: 7.000%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-A-6 Principal Balance
as of the Cut-Off Date: $1,500,000.00
Cede & Co.
Registered Owner
A-7
Exhibit A
CUSIP 939335 PE9
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-A-7
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-A-7 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $1,000,000.00
Class II-A-7 Certificate Interest Rate: 7.000%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-A-7 Principal Balance
as of the Cut-Off Date: $1,000,000.00
Cede & Co.
Registered Owner
A-8
Exhibit A
CUSIP 939335 PF6
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-A-8
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-A-8 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $1,000,000.00
Class II-A-8 Certificate Interest Rate: 7.000%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-A-8 Principal Balance
as of the Cut-Off Date: $1,000,000.00
Cede & Co.
Registered Owner
A-9
Exhibit A
CUSIP 939335 PG4
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-A-9
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-A-9 Notional Amount
as of the Cut-Off Date Evidenced by this
Certificate: $21,258,740.00
Class II-A-9 Certificate Interest Rate: 6.750%, applied to the
Class II-A-9 Notional Amount
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-A-9 Principal Balance
as of the Cut-Off Date: $0.00
Class II-A-9 Notional Amount
as of the Cut-Off Date: $21,258,740.00
Cede & Co.
Registered Owner
A-10
Exhibit A
CUSIP 939335 PH2
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-A-10
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-A-10 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $418,900.00
Class II-A-10 Certificate Interest Rate: 7.000%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-A-10 Principal Balance
as of the Cut-Off Date: $418,900.00
Cede & Co.
Registered Owner
A-11
Exhibit A
CUSIP 939335 PJ8
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-A-11
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-A-11 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $134,000,000.00
Class II-A-11 Certificate Interest Rate: 6.750%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-A-11 Principal Balance
as of the Cut-Off Date: $134,000,000.00
Cede & Co.
Registered Owner
A-12
Exhibit A
CUSIP 939335 PK5
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-A-12
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-A-12 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $19,010,000.00
Class II-A-12 Certificate Interest Rate: 6.000%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-A-12 Principal Balance
as of the Cut-Off Date: $19,010,000.00
Cede & Co.
Registered Owner
A-13
Exhibit A
CUSIP 939335 PL3
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-A-13
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001. Interest is not payable with respect
to this Certificate.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-A-13 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $571,100.00
Class II-A-13 Certificate Interest Rate: 0.000%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-A-13 Principal Balance
as of the Cut-Off Date: $571,100.00
Cede & Co.
Registered Owner
A-14
Exhibit A
CUSIP 939335 PM1
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-A-14
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-A-14 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate:$200,000,000.00
Class II-A-14 Certificate Interest Rate: 6.750%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-A-14 Principal Balance
as of the Cut-Off Date: $200,000,000.00
Cede & Co.
Registered Owner
A-15
Exhibit A
CUSIP 939335 PN9
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-A-15
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-A-15 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $17,700,000.00
Class II-A-15 Certificate Interest Rate: 6.750%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-A-15 Principal Balance
as of the Cut-Off Date: $17,700,000.00
Cede & Co.
Registered Owner
A-16
Exhibit A
CUSIP 939335 PP4
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-A-16
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-A-16 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $4,252,000.00
Class II-A-16 Certificate Interest Rate: 6.750%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-A-16 Principal Balance
as of the Cut-Off Date: $4,252,000.00
Cede & Co.
Registered Owner
A-17
Exhibit A
CUSIP 939335 XX0
XXXX MORTGAGE PASS-THROUGH CERTIFICATE
Class II-A-17
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-A-17 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $100,000,000.00
Class II-A-17 Certificate Interest Rate: 6.750%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-A-17 Principal Balance
as of the Cut-Off Date: $100,000,000.00
Cede & Co.
Registered Owner
A-18
Exhibit A
CUSIP 939335 PR0
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-A-18
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-A-18 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $20,552,000.00
Class II-A-18 Certificate Interest Rate: 6.000%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-A-18 Principal Balance
as of the Cut-Off Date: $20,552,000.00
Cede & Co.
Registered Owner
A-19
Exhibit A
CUSIP 939335 PS8
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-A-19
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-A-19 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $24,130,000.00
Class II-A-19 Certificate Interest Rate: 6.750%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-A-19 Principal Balance
as of the Cut-Off Date: $24,130,000.00
Cede & Co.
Registered Owner
A-20
Exhibit A
CUSIP 939335 PT6
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-A-20
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-A-20 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $10,180,000.00
Class II-A-20 Certificate Interest Rate: 6.750%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-A-20 Principal Balance
as of the Cut-Off Date: $10,180,000.00
Cede & Co.
Registered Owner
A-21
Exhibit A
CUSIP 939335 PU3
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-A-21
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-A-21 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $20,000,000.00
Class II-A-21 Certificate Interest Rate: 6.750%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-A-21 Principal Balance
as of the Cut-Off Date: $20,000,000.00
Cede & Co.
Registered Owner
A-22
Exhibit A
CUSIP 939335 PV1
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-A-22
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-A-22 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $32,250,000.00
Class II-A-22 Certificate Interest Rate: 6.750%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-A-22 Principal Balance
as of the Cut-Off Date: $32,250,000.00
Cede & Co.
Registered Owner
A-23
Exhibit A
CUSIP 939335 PW9
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-A-23
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-A-23 Notional Amount
as of the Cut-Off Date Evidenced by this
Certificate: $2,283,555.00
Class II-A-23 Certificate Interest Rate: 6.750%, applied to
the Class II-A-23 Notional Amount
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-A-23 Principal Balance
as of the Cut-Off Date: $0.00
Class II-A-23 Notional Amount
as of the Cut-Off Date: $2,283,555.00
Cede & Co.
Registered Owner
A-24
Exhibit A
CUSIP 939335 PX7
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-A-24
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-A-24 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $50,000,000.00
Class II-A-24 Certificate Interest Rate: 6.690%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-A-24 Principal Balance
as of the Cut-Off Date: $50,000,000.00
Cede & Co.
Registered Owner
A-25
Exhibit A
CUSIP 939335 XX0
XXXX MORTGAGE PASS-THROUGH CERTIFICATE
Class II-A-25
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-A-25 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $93,700,000.00
Class II-A-25 Certificate Interest Rate: 6.750%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-A-25 Principal Balance
as of the Cut-Off Date: $93,700,000.00
Cede & Co.
Registered Owner
A-26
Exhibit A
CUSIP 939335 PZ2
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-A-26
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-A-26 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $1,100,000.00
Class II-A-26 Certificate Interest Rate: 6.750%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-A-26 Principal Balance
as of the Cut-Off Date: $1,100,000.00
Cede & Co.
Registered Owner
A-27
Exhibit A
CUSIP 939335 QA6
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-A-27
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-A-27 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $700,000.00
Class II-A-27 Certificate Interest Rate: 6.750%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-A-27 Principal Balance
as of the Cut-Off Date: $700,000.00
Cede & Co.
Registered Owner
A-28
Exhibit A
CUSIP 939335 QB4
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-A-28
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-A-28 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $4,500,000.00
Class II-A-28 Certificate Interest Rate: 6.750%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-A-28 Principal Balance
as of the Cut-Off Date: $4,500,000.00
Cede & Co.
Registered Owner
A-29
Exhibit A
CUSIP 939335 QC2
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-A-29
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-A-29 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $11,500,000.00
Class II-A-29 Certificate Interest Rate: 7.000%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-A-29 Principal Balance
as of the Cut-Off Date: $11,500,000.00
Cede & Co.
Registered Owner
A-30
Exhibit A
CUSIP 939335 QD0
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-A-30
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001. Interest is not payable with respect
to this Certificate.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-A-30 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $426,000.00
Class II-A-30 Certificate Interest Rate: 0.000%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-A-30 Principal Balance
as of the Cut-Off Date: $426,000.00
Cede & Co.
Registered Owner
A-31
Exhibit A
CUSIP 939335 QE8
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class I-X
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class I-X Notional Amount as
of the Cut-Off Date Evidenced by this
Certificate: $3,633,886.00
Class I-X Certificate Interest Rate: 6.500% applied to the
Class I-X Notional Amount
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2016
Class I-X Principal Balance
as of the Cut-Off Date: $0.00
Class I-X Notional Amount
as of the Cut-Off Date: $3,633,886.00
Cede & Co.
Registered Owner
A-32
Exhibit A
CUSIP 939335 QF5
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-X
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-X Notional Amount as
of the Cut-Off Date Evidenced by this
Certificate: $4,771,742.00
Class II-X Certificate Interest Rate: 6.750% applied to the
Class II-X Notional Amount
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-X Principal Balance
as of the Cut-Off Date: $0.00
Class II-X Notional Amount
as of the Cut-Off Date: $4,771,742.00
Cede & Co.
Registered Owner
A-33
Exhibit A
CUSIP 939335 QG3
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class I-P
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001. Interest is not payable with respect
to this Certificate.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class I-P Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $1,363,770.00
Class I-P Certificate Interest Rate: 0.000%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2016
Class I-P Principal Balance
as of the Cut-Off Date: $1,363,770.00
Cede & Co.
Registered Owner
A-34
Exhibit A
CUSIP 939335 QH1
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-P
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date of this Certificate is July 30, 2001. Interest is not payable with respect
to this Certificate.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
Series 2001-S8 Portion of the Class II-P Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $3,037,870.00
Class II-P Certificate Interest Rate: 0.000%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-P Principal Balance
as of the Cut-Off Date: $3,037,870.00
Cede & Co.
Registered Owner
A-35
Exhibit A
CUSIP 939335 QJ7
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class I-B-1
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended (the
"Code").
The issue date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
NO TRANSFER OF THIS CLASS I-B-1 CERTIFICATE WILL BE MADE UNLESS THE TRUSTEE HAS
RECEIVED (I) AN OFFICER'S CERTIFICATE IN THE FORM DESCRIBED IN SECTION 5.01(g)
OF THE POOLING AGREEMENT AND (II) IF SO INDICATED IN SUCH OFFICER'S CERTIFICATE,
AN OPINION OF COUNSEL ACCEPTABLE TO AND IN FORM AND SUBSTANCE SATISFACTORY TO
THE TRUSTEE AND THE COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING OF THIS
CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT
IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE, AND WILL NOT SUBJECT THE TRUSTEE, THE MASTER SERVICER OR THE
COMPANY TO ANY OBLIGATION OR LIABILITY (INCLUDING OBLIGATIONS OR LIABILITIES
UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE) IN ADDITION TO THOSE
UNDERTAKEN IN THE POOLING AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN
EXPENSE OF THE TRUSTEE, THE MASTER SERVICER OR THE COMPANY.
NOTWITHSTANDING THE FOREGOING PARAGRAPH, WITH RESPECT TO THE TRANSFER OF THIS
CLASS I-B-1 CERTIFICATE TO DTC OR ANY OTHER CLEARING AGENCY OR ANY SUBSEQUENT
TRANSFER OF ANY INTEREST IN THIS CERTIFICATE FOR SO LONG AS THIS CERTIFICATE IS
HELD BY DTC OR ANY OTHER CLEARING AGENCY, (I) AN OFFICER'S CERTIFICATE (AND, IF
APPLICABLE, A BENEFIT PLAN OPINION), AS DESCRIBED IN THE FOREGOING PARAGRAPH,
SHALL NOT BE REQUIRED, AND (II) THE FOLLOWING CONDITIONS SHALL APPLY:
1. ANY TRANSFEREE OF THIS CERTIFICATE WILL BE DEEMED TO HAVE
REPRESENTED, BY VIRTUE OF ITS ACQUISITION OR HOLDING OF THIS CERTIFICATE
(OR INTEREST HEREIN), THAT EITHER (A) SUCH TRANSFEREE IS NOT AN EMPLOYEE
BENEFIT OR OTHER PLAN SUBJECT TO THE PROHIBITED TRANSACTION PROVISIONS OF
ERISA OR SECTION 4975 OF THE CODE, OR ANY PERSON (INCLUDING AN INVESTMENT
MANAGER, A NAMED FIDUCIARY OR A TRUSTEE OF ANY SUCH PLAN) ACTING, DIRECTLY
OR INDIRECTLY, ON BEHALF OF OR PURCHASING THIS CERTIFICATE WITH "PLAN
ASSETS" OF ANY SUCH PLAN (A "PLAN INVESTOR"), (B) SUCH TRANSFEREE IS AN
INSURANCE COMPANY, THE SOURCE OF FUNDS TO BE USED BY IT TO ACQUIRE OR HOLD
THIS CERTIFICATE IS AN "INSURANCE COMPANY GENERAL ACCOUNT" (WITHIN THE
MEANING OF DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION
("PTCE") 95-60), AND THE CONDITIONS IN SECTION I AND III OF PTCE 95-60 HAVE
BEEN SATISFIED (EACH ENTITY THAT SATISFIES THIS CLAUSE (B), A "COMPLYING
INSURANCE COMPANY") OR (C) THIS CERTIFICATE WAS RATED "BBB-" OR BETTER (OR
ITS EQUIVALENT) BY AT LEAST ONE OF THE RATING AGENCIES AT THE TIME OF SUCH
TRANSFEREE'S ACQUISITION OF THIS CERTIFICATE (OR INTEREST HEREIN); AND
2. IF THIS CERTIFICATE (OR ANY INTEREST HEREIN) IS ACQUIRED OR HELD IN
VIOLATION OF THE PROVISIONS OF THE PRECEDING PARAGRAPH, THEN THE LAST
PRECEDING TRANSFEREE THAT EITHER (I) IS NOT A PLAN INVESTOR, (II) IS A
COMPLYING INSURANCE COMPANY OR (III) ACQUIRED THIS CERTIFICATE AT A TIME
WHEN THIS CERTIFICATE WAS RATED "BBB-" OR BETTER (OR ITS EQUIVALENT) BY AT
LEAST ONE OF THE RATING AGENCIES SHALL BE RESTORED, TO THE EXTENT PERMITTED
BY LAW, TO ALL RIGHTS AND OBLIGATIONS AS
A-36
BENEFICIAL HOLDER THEREOF RETROACTIVE TO THE DATE OF TRANSFER OF THIS
CERTIFICATE BY SUCH PRECEDING TRANSFEREE. THE TRUSTEE SHALL BE UNDER NO
LIABILITY TO ANY PERSON FOR MAKING ANY PAYMENTS DUE ON THIS CERTIFICATE TO
SUCH PRECEDING TRANSFEREE.
ANY PURPORTED BENEFICIAL HOLDER WHOSE ACQUISITION OR HOLDING OF THIS CERTIFICATE
(OR INTEREST HEREIN) WAS EFFECTED IN VIOLATION OF THE RESTRICTIONS IN SECTION
5.01(g) OF THE POOLING AGREEMENT SHALL INDEMNIFY AND HOLD HARMLESS THE COMPANY,
THE TRUSTEE, THE MASTER SERVICER, THE TRUST AND THE UNDERWRITER FROM AND AGAINST
ANY AND ALL LIABILITIES, CLAIMS, COSTS OR EXPENSES INCURRED BY SUCH PARTIES AS A
RESULT OF SUCH ACQUISITION OR HOLDING.
The Class I-B-1 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as described in the
Pooling Agreement.
Series 2001-S8 Portion of the Class I-B-1 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $1,385,000.00
Class I-B-1 Certificate Interest Rate: 6.500%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2016
Class I-B-1 Principal Balance
as of the Cut-Off Date: $1,385,000.00
Cede & Co.
Registered Owner
A-37
Exhibit A
CUSIP 939335 QK4
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class I-B-2
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended (the
"Code").
The issue date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
NO TRANSFER OF THIS CLASS I-B-2 CERTIFICATE WILL BE MADE UNLESS THE TRUSTEE HAS
RECEIVED (I) AN OFFICER'S CERTIFICATE IN THE FORM DESCRIBED IN SECTION 5.01(g)
OF THE POOLING AGREEMENT AND (II) IF SO INDICATED IN SUCH OFFICER'S CERTIFICATE,
AN OPINION OF COUNSEL ACCEPTABLE TO AND IN FORM AND SUBSTANCE SATISFACTORY TO
THE TRUSTEE AND THE COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING OF THIS
CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT
IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE, AND WILL NOT SUBJECT THE TRUSTEE, THE MASTER SERVICER OR THE
COMPANY TO ANY OBLIGATION OR LIABILITY (INCLUDING OBLIGATIONS OR LIABILITIES
UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE) IN ADDITION TO THOSE
UNDERTAKEN IN THE POOLING AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN
EXPENSE OF THE TRUSTEE, THE MASTER SERVICER OR THE COMPANY.
NOTWITHSTANDING THE FOREGOING PARAGRAPH, WITH RESPECT TO THE TRANSFER OF THIS
CLASS I-B-2 CERTIFICATE TO DTC OR ANY OTHER CLEARING AGENCY OR ANY SUBSEQUENT
TRANSFER OF ANY INTEREST IN THIS CERTIFICATE FOR SO LONG AS THIS CERTIFICATE IS
HELD BY DTC OR ANY OTHER CLEARING AGENCY, (I) AN OFFICER'S CERTIFICATE (AND, IF
APPLICABLE, A BENEFIT PLAN OPINION), AS DESCRIBED IN THE FOREGOING PARAGRAPH,
SHALL NOT BE REQUIRED, AND (II) THE FOLLOWING CONDITIONS SHALL APPLY:
1. ANY TRANSFEREE OF THIS CERTIFICATE WILL BE DEEMED TO HAVE
REPRESENTED, BY VIRTUE OF ITS ACQUISITION OR HOLDING OF THIS CERTIFICATE
(OR INTEREST HEREIN), THAT EITHER (A) SUCH TRANSFEREE IS NOT AN EMPLOYEE
BENEFIT OR OTHER PLAN SUBJECT TO THE PROHIBITED TRANSACTION PROVISIONS OF
ERISA OR SECTION 4975 OF THE CODE, OR ANY PERSON (INCLUDING AN INVESTMENT
MANAGER, A NAMED FIDUCIARY OR A TRUSTEE OF ANY SUCH PLAN) ACTING, DIRECTLY
OR INDIRECTLY, ON BEHALF OF OR PURCHASING THIS CERTIFICATE WITH "PLAN
ASSETS" OF ANY SUCH PLAN (A "PLAN INVESTOR"), (B) SUCH TRANSFEREE IS AN
INSURANCE COMPANY, THE SOURCE OF FUNDS TO BE USED BY IT TO ACQUIRE OR HOLD
THIS CERTIFICATE IS AN "INSURANCE COMPANY GENERAL ACCOUNT" (WITHIN THE
MEANING OF DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION
("PTCE") 95-60), AND THE CONDITIONS IN SECTION I AND III OF PTCE 95-60 HAVE
BEEN SATISFIED (EACH ENTITY THAT SATISFIES THIS CLAUSE (B), A "COMPLYING
INSURANCE COMPANY") OR (C) THIS CERTIFICATE WAS RATED "BBB-" OR BETTER (OR
ITS EQUIVALENT) BY AT LEAST ONE OF THE RATING AGENCIES AT THE TIME OF SUCH
TRANSFEREE'S ACQUISITION OF THIS CERTIFICATE (OR INTEREST HEREIN); AND
2. IF THIS CERTIFICATE (OR ANY INTEREST HEREIN) IS ACQUIRED OR HELD IN
VIOLATION OF THE PROVISIONS OF THE PRECEDING PARAGRAPH, THEN THE LAST
PRECEDING TRANSFEREE THAT EITHER (I) IS NOT A PLAN INVESTOR, (II) IS A
COMPLYING INSURANCE COMPANY OR (III) ACQUIRED THIS CERTIFICATE AT A TIME
WHEN THIS CERTIFICATE WAS RATED "BBB-" OR BETTER (OR ITS EQUIVALENT) BY AT
LEAST ONE OF THE RATING AGENCIES SHALL BE RESTORED, TO THE EXTENT PERMITTED
BY LAW, TO ALL RIGHTS AND OBLIGATIONS AS
A-38
BENEFICIAL HOLDER THEREOF RETROACTIVE TO THE DATE OF TRANSFER OF THIS
CERTIFICATE BY SUCH PRECEDING TRANSFEREE. THE TRUSTEE SHALL BE UNDER NO
LIABILITY TO ANY PERSON FOR MAKING ANY PAYMENTS DUE ON THIS CERTIFICATE TO
SUCH PRECEDING TRANSFEREE.
ANY PURPORTED BENEFICIAL HOLDER WHOSE ACQUISITION OR HOLDING OF THIS CERTIFICATE
(OR INTEREST HEREIN) WAS EFFECTED IN VIOLATION OF THE RESTRICTIONS IN SECTION
5.01(g) OF THE POOLING AGREEMENT SHALL INDEMNIFY AND HOLD HARMLESS THE COMPANY,
THE TRUSTEE, THE MASTER SERVICER, THE TRUST AND THE UNDERWRITER FROM AND AGAINST
ANY AND ALL LIABILITIES, CLAIMS, COSTS OR EXPENSES INCURRED BY SUCH PARTIES AS A
RESULT OF SUCH ACQUISITION OR HOLDING.
The Class I-B-2 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as described in the
Pooling Agreement.
Series 2001-S8 Portion of the Class I-B-2 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $692,000.00
Class I-B-2 Certificate Interest Rate: 6.500%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2016
Class I-B-2 Principal Balance
as of the Cut-Off Date: $692,000.00
Cede & Co.
Registered Owner
A-39
Exhibit A
CUSIP 939335 QL2
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class I-B-3
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended (the
"Code").
The issue date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
NO TRANSFER OF THIS CLASS I-B-3 CERTIFICATE WILL BE MADE UNLESS THE TRUSTEE HAS
RECEIVED (I) AN OFFICER'S CERTIFICATE IN THE FORM DESCRIBED IN SECTION 5.01(g)
OF THE POOLING AGREEMENT AND (II) IF SO INDICATED IN SUCH OFFICER'S CERTIFICATE,
AN OPINION OF COUNSEL ACCEPTABLE TO AND IN FORM AND SUBSTANCE SATISFACTORY TO
THE TRUSTEE AND THE COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING OF THIS
CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT
IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE, AND WILL NOT SUBJECT THE TRUSTEE, THE MASTER SERVICER OR THE
COMPANY TO ANY OBLIGATION OR LIABILITY (INCLUDING OBLIGATIONS OR LIABILITIES
UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE) IN ADDITION TO THOSE
UNDERTAKEN IN THE POOLING AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN
EXPENSE OF THE TRUSTEE, THE MASTER SERVICER OR THE COMPANY.
NOTWITHSTANDING THE FOREGOING PARAGRAPH, WITH RESPECT TO THE TRANSFER OF THIS
CLASS I-B-3 CERTIFICATE TO DTC OR ANY OTHER CLEARING AGENCY OR ANY SUBSEQUENT
TRANSFER OF ANY INTEREST IN THIS CERTIFICATE FOR SO LONG AS THIS CERTIFICATE IS
HELD BY DTC OR ANY OTHER CLEARING AGENCY, (I) AN OFFICER'S CERTIFICATE (AND, IF
APPLICABLE, A BENEFIT PLAN OPINION), AS DESCRIBED IN THE FOREGOING PARAGRAPH,
SHALL NOT BE REQUIRED, AND (II) THE FOLLOWING CONDITIONS SHALL APPLY:
1. ANY TRANSFEREE OF THIS CERTIFICATE WILL BE DEEMED TO HAVE
REPRESENTED, BY VIRTUE OF ITS ACQUISITION OR HOLDING OF THIS CERTIFICATE
(OR INTEREST HEREIN), THAT EITHER (A) SUCH TRANSFEREE IS NOT AN EMPLOYEE
BENEFIT OR OTHER PLAN SUBJECT TO THE PROHIBITED TRANSACTION PROVISIONS OF
ERISA OR SECTION 4975 OF THE CODE, OR ANY PERSON (INCLUDING AN INVESTMENT
MANAGER, A NAMED FIDUCIARY OR A TRUSTEE OF ANY SUCH PLAN) ACTING, DIRECTLY
OR INDIRECTLY, ON BEHALF OF OR PURCHASING THIS CERTIFICATE WITH "PLAN
ASSETS" OF ANY SUCH PLAN (A "PLAN INVESTOR"), (B) SUCH TRANSFEREE IS AN
INSURANCE COMPANY, THE SOURCE OF FUNDS TO BE USED BY IT TO ACQUIRE OR HOLD
THIS CERTIFICATE IS AN "INSURANCE COMPANY GENERAL ACCOUNT" (WITHIN THE
MEANING OF DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION
("PTCE") 95-60), AND THE CONDITIONS IN SECTION I AND III OF PTCE 95-60 HAVE
BEEN SATISFIED (EACH ENTITY THAT SATISFIES THIS CLAUSE (B), A "COMPLYING
INSURANCE COMPANY") OR (C) THIS CERTIFICATE WAS RATED "BBB-" OR BETTER (OR
ITS EQUIVALENT) BY AT LEAST ONE OF THE RATING AGENCIES AT THE TIME OF SUCH
TRANSFEREE'S ACQUISITION OF THIS CERTIFICATE (OR INTEREST HEREIN); AND
2. IF THIS CERTIFICATE (OR ANY INTEREST HEREIN) IS ACQUIRED OR HELD IN
VIOLATION OF THE PROVISIONS OF THE PRECEDING PARAGRAPH, THEN THE LAST
PRECEDING TRANSFEREE THAT EITHER (I) IS NOT A PLAN INVESTOR, (II) IS A
COMPLYING INSURANCE COMPANY OR (III) ACQUIRED THIS CERTIFICATE AT A TIME
WHEN THIS CERTIFICATE WAS RATED "BBB-" OR BETTER (OR ITS EQUIVALENT) BY AT
LEAST ONE OF THE RATING AGENCIES SHALL BE RESTORED, TO THE EXTENT PERMITTED
BY LAW, TO ALL RIGHTS AND OBLIGATIONS AS
A-40
BENEFICIAL HOLDER THEREOF RETROACTIVE TO THE DATE OF TRANSFER OF THIS
CERTIFICATE BY SUCH PRECEDING TRANSFEREE. THE TRUSTEE SHALL BE UNDER NO
LIABILITY TO ANY PERSON FOR MAKING ANY PAYMENTS DUE ON THIS CERTIFICATE TO
SUCH PRECEDING TRANSFEREE.
ANY PURPORTED BENEFICIAL HOLDER WHOSE ACQUISITION OR HOLDING OF THIS CERTIFICATE
(OR INTEREST HEREIN) WAS EFFECTED IN VIOLATION OF THE RESTRICTIONS IN SECTION
5.01(g) OF THE POOLING AGREEMENT SHALL INDEMNIFY AND HOLD HARMLESS THE COMPANY,
THE TRUSTEE, THE MASTER SERVICER, THE TRUST AND THE UNDERWRITER FROM AND AGAINST
ANY AND ALL LIABILITIES, CLAIMS, COSTS OR EXPENSES INCURRED BY SUCH PARTIES AS A
RESULT OF SUCH ACQUISITION OR HOLDING.
The Class I-B-3 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as described in the
Pooling Agreement.
Series 2001-S8 Portion of the Class I-B-3 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $395,000.00
Class I-B-3 Certificate Interest Rate: 6.500%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2016
Class I-B-3 Principal Balance
as of the Cut-Off Date: $395,000.00
Cede & Co.
Registered Owner
A-41
Exhibit A
CUSIP 939335 QS7
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class I-B-4
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended (the
"Code").
The issue date of this Certificate is July 30, 2001.
NO TRANSFER OF THIS CLASS I-B-4 CERTIFICATE WILL BE MADE UNLESS THE TRUSTEE
HAS RECEIVED (I) AN OFFICER'S CERTIFICATE IN THE FORM DESCRIBED IN SECTION
5.01(d) OF THE POOLING AGREEMENT AND (II) IF SO INDICATED IN SUCH OFFICER'S
CERTIFICATE, AN OPINION OF COUNSEL ACCEPTABLE TO AND IN FORM AND SUBSTANCE
SATISFACTORY TO THE TRUSTEE AND THE COMPANY TO THE EFFECT THAT THE PURCHASE
AND HOLDING OF THIS CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL
NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND WILL NOT SUBJECT THE
TRUSTEE, THE MASTER SERVICER OR THE COMPANY TO ANY OBLIGATION OR LIABILITY
(INCLUDING OBLIGATIONS OR LIABILITIES UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING AGREEMENT,
WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE TRUSTEE, THE MASTER
SERVICER OR THE COMPANY.
THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933. THESE SECURITIES MAY NOT BE OFFERED,
SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF REGISTRATION
OR THE AVAILABILITY OF AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT OF 1933 AND EXCEPT IN ACCORDANCE WITH SECTION 5.01(e) OF THE POOLING
AGREEMENT.
The Class I-B-4 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as described in the
Pooling Agreement.
Series 2001-S8 Portion of the Class I-B-4 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $197,000.00
Class I-B-4 Certificate Interest Rate: 6.500%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2016
Class I-B-4 Principal Balance
as of the Cut-Off Date: $197,000.00
---------------------
Registered Owner
A-42
Exhibit A
CUSIP 939335 QT5
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class I-B-5
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended (the
"Code").
The issue date of this Certificate is July 30, 2001.
NO TRANSFER OF THIS CLASS I-B-5 CERTIFICATE WILL BE MADE UNLESS THE TRUSTEE
HAS RECEIVED (I) AN OFFICER'S CERTIFICATE IN THE FORM DESCRIBED IN SECTION
5.01(d) OF THE POOLING AGREEMENT AND (II) IF SO INDICATED IN SUCH OFFICER'S
CERTIFICATE, AN OPINION OF COUNSEL ACCEPTABLE TO AND IN FORM AND SUBSTANCE
SATISFACTORY TO THE TRUSTEE AND THE COMPANY TO THE EFFECT THAT THE PURCHASE
AND HOLDING OF THIS CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL
NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND WILL NOT SUBJECT THE
TRUSTEE, THE MASTER SERVICER OR THE COMPANY TO ANY OBLIGATION OR LIABILITY
(INCLUDING OBLIGATIONS OR LIABILITIES UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING AGREEMENT,
WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE TRUSTEE, THE MASTER
SERVICER OR THE COMPANY.
THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933. THESE SECURITIES MAY NOT BE OFFERED,
SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF REGISTRATION
OR THE AVAILABILITY OF AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT OF 1933 AND EXCEPT IN ACCORDANCE WITH SECTION 5.01(e) OF THE POOLING
AGREEMENT.
The Class I-B-5 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as described in the
Pooling Agreement.
Series 2001-S8 Portion of the Class I-B-5 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: 197,000.00
Class I-B-5 Certificate Interest Rate: 6.500%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2016
Class I-B-5 Principal Balance
as of the Cut-Off Date: $197,000.00
---------------------
Registered Owner
A-43
Exhibit A
CUSIP 939335 QU2
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class I-B-6
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended (the
"Code").
The issue date of this Certificate is July 30, 2001.
NO TRANSFER OF THIS CLASS I-B-6 CERTIFICATE WILL BE MADE UNLESS THE TRUSTEE
HAS RECEIVED (I) AN OFFICER'S CERTIFICATE IN THE FORM DESCRIBED IN SECTION
5.01(d) OF THE POOLING AGREEMENT AND (II) IF SO INDICATED IN SUCH OFFICER'S
CERTIFICATE, AN OPINION OF COUNSEL ACCEPTABLE TO AND IN FORM AND SUBSTANCE
SATISFACTORY TO THE TRUSTEE AND THE COMPANY TO THE EFFECT THAT THE PURCHASE
AND HOLDING OF THIS CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL
NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND WILL NOT SUBJECT THE
TRUSTEE, THE MASTER SERVICER OR THE COMPANY TO ANY OBLIGATION OR LIABILITY
(INCLUDING OBLIGATIONS OR LIABILITIES UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING AGREEMENT,
WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE TRUSTEE, THE MASTER
SERVICER OR THE COMPANY.
THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933. THESE SECURITIES MAY NOT BE OFFERED,
SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF REGISTRATION
OR THE AVAILABILITY OF AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT OF 1933 AND EXCEPT IN ACCORDANCE WITH SECTION 5.01(e) OF THE POOLING
AGREEMENT.
The Class I-B-6 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as described in the
Pooling Agreement.
Series 2001-S8 Portion of the Class I-B-6 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $202,547.00
Class I-B-6 Certificate Interest Rate: 6.500%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2016
Class I-B-6 Principal Balance
as of the Cut-Off Date: $202,547.00
---------------------
Registered Owner
A-44
Exhibit A
CUSIP 939335 QM0
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-B-1
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended (the
"Code").
The issue date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
NO TRANSFER OF THIS CLASS II-B-1 CERTIFICATE WILL BE MADE UNLESS THE TRUSTEE HAS
RECEIVED (I) AN OFFICER'S CERTIFICATE IN THE FORM DESCRIBED IN SECTION 5.01(g)
OF THE POOLING AGREEMENT AND (II) IF SO INDICATED IN SUCH OFFICER'S CERTIFICATE,
AN OPINION OF COUNSEL ACCEPTABLE TO AND IN FORM AND SUBSTANCE SATISFACTORY TO
THE TRUSTEE AND THE COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING OF THIS
CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT
IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE, AND WILL NOT SUBJECT THE TRUSTEE, THE MASTER SERVICER OR THE
COMPANY TO ANY OBLIGATION OR LIABILITY (INCLUDING OBLIGATIONS OR LIABILITIES
UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE) IN ADDITION TO THOSE
UNDERTAKEN IN THE POOLING AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN
EXPENSE OF THE TRUSTEE, THE MASTER SERVICER OR THE COMPANY.
NOTWITHSTANDING THE FOREGOING PARAGRAPH, WITH RESPECT TO THE TRANSFER OF THIS
CLASS II-B-1 CERTIFICATE TO DTC OR ANY OTHER CLEARING AGENCY OR ANY SUBSEQUENT
TRANSFER OF ANY INTEREST IN THIS CERTIFICATE FOR SO LONG AS THIS CERTIFICATE IS
HELD BY DTC OR ANY OTHER CLEARING AGENCY, (I) AN OFFICER'S CERTIFICATE (AND, IF
APPLICABLE, A BENEFIT PLAN OPINION), AS DESCRIBED IN THE FOREGOING PARAGRAPH,
SHALL NOT BE REQUIRED, AND (II) THE FOLLOWING CONDITIONS SHALL APPLY:
1. ANY TRANSFEREE OF THIS CERTIFICATE WILL BE DEEMED TO HAVE
REPRESENTED, BY VIRTUE OF ITS ACQUISITION OR HOLDING OF THIS CERTIFICATE
(OR INTEREST HEREIN), THAT EITHER (A) SUCH TRANSFEREE IS NOT AN EMPLOYEE
BENEFIT OR OTHER PLAN SUBJECT TO THE PROHIBITED TRANSACTION PROVISIONS OF
ERISA OR SECTION 4975 OF THE CODE, OR ANY PERSON (INCLUDING AN INVESTMENT
MANAGER, A NAMED FIDUCIARY OR A TRUSTEE OF ANY SUCH PLAN) ACTING, DIRECTLY
OR INDIRECTLY, ON BEHALF OF OR PURCHASING THIS CERTIFICATE WITH "PLAN
ASSETS" OF ANY SUCH PLAN (A "PLAN INVESTOR"), (B) SUCH TRANSFEREE IS AN
INSURANCE COMPANY, THE SOURCE OF FUNDS TO BE USED BY IT TO ACQUIRE OR HOLD
THIS CERTIFICATE IS AN "INSURANCE COMPANY GENERAL ACCOUNT" (WITHIN THE
MEANING OF DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION
("PTCE") 95-60), AND THE CONDITIONS IN SECTION I AND III OF PTCE 95-60 HAVE
BEEN SATISFIED (EACH ENTITY THAT SATISFIES THIS CLAUSE (B), A "COMPLYING
INSURANCE COMPANY") OR (C) THIS CERTIFICATE WAS RATED "BBB-" OR BETTER (OR
ITS EQUIVALENT) BY AT LEAST ONE OF THE RATING AGENCIES AT THE TIME OF SUCH
TRANSFEREE'S ACQUISITION OF THIS CERTIFICATE (OR INTEREST HEREIN); AND
2. IF THIS CERTIFICATE (OR ANY INTEREST HEREIN) IS ACQUIRED OR HELD IN
VIOLATION OF THE PROVISIONS OF THE PRECEDING PARAGRAPH, THEN THE LAST
PRECEDING TRANSFEREE THAT EITHER (I) IS NOT A PLAN INVESTOR, (II) IS A
COMPLYING INSURANCE COMPANY OR (III) ACQUIRED THIS CERTIFICATE AT A TIME
WHEN THIS CERTIFICATE WAS RATED "BBB-" OR BETTER (OR ITS EQUIVALENT) BY AT
LEAST ONE OF THE RATING AGENCIES SHALL BE RESTORED, TO THE EXTENT PERMITTED
BY LAW, TO ALL RIGHTS AND OBLIGATIONS AS
A-45
BENEFICIAL HOLDER THEREOF RETROACTIVE TO THE DATE OF TRANSFER OF THIS
CERTIFICATE BY SUCH PRECEDING TRANSFEREE. THE TRUSTEE SHALL BE UNDER NO
LIABILITY TO ANY PERSON FOR MAKING ANY PAYMENTS DUE ON THIS CERTIFICATE TO
SUCH PRECEDING TRANSFEREE.
ANY PURPORTED BENEFICIAL HOLDER WHOSE ACQUISITION OR HOLDING OF THIS CERTIFICATE
(OR INTEREST HEREIN) WAS EFFECTED IN VIOLATION OF THE RESTRICTIONS IN SECTION
5.01(g) OF THE POOLING AGREEMENT SHALL INDEMNIFY AND HOLD HARMLESS THE COMPANY,
THE TRUSTEE, THE MASTER SERVICER, THE TRUST AND THE UNDERWRITER FROM AND AGAINST
ANY AND ALL LIABILITIES, CLAIMS, COSTS OR EXPENSES INCURRED BY SUCH PARTIES AS A
RESULT OF SUCH ACQUISITION OR HOLDING.
The Class II-B-1 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as described in the
Pooling Agreement.
Series 2001-S8 Portion of the Class II-B-1 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $15,582,000.00
Class II-B-1 Certificate Interest Rate: 6.750%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-B-1 Principal Balance
as of the Cut-Off Date: $15,582,000.00
Cede & Co.
Registered Owner
X-00
Xxxxxxx X
XXXXX 000000 XX0
XXXX MORTGAGE PASS-THROUGH CERTIFICATE
Class II-B-2
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended (the
"Code").
The issue date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
NO TRANSFER OF THIS CLASS II-B-2 CERTIFICATE WILL BE MADE UNLESS THE TRUSTEE HAS
RECEIVED (I) AN OFFICER'S CERTIFICATE IN THE FORM DESCRIBED IN SECTION 5.01(g)
OF THE POOLING AGREEMENT AND (II) IF SO INDICATED IN SUCH OFFICER'S CERTIFICATE,
AN OPINION OF COUNSEL ACCEPTABLE TO AND IN FORM AND SUBSTANCE SATISFACTORY TO
THE TRUSTEE AND THE COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING OF THIS
CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT
IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE, AND WILL NOT SUBJECT THE TRUSTEE, THE MASTER SERVICER OR THE
COMPANY TO ANY OBLIGATION OR LIABILITY (INCLUDING OBLIGATIONS OR LIABILITIES
UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE) IN ADDITION TO THOSE
UNDERTAKEN IN THE POOLING AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN
EXPENSE OF THE TRUSTEE, THE MASTER SERVICER OR THE COMPANY.
NOTWITHSTANDING THE FOREGOING PARAGRAPH, WITH RESPECT TO THE TRANSFER OF THIS
CLASS II-B-2 CERTIFICATE TO DTC OR ANY OTHER CLEARING AGENCY OR ANY SUBSEQUENT
TRANSFER OF ANY INTEREST IN THIS CERTIFICATE FOR SO LONG AS THIS CERTIFICATE IS
HELD BY DTC OR ANY OTHER CLEARING AGENCY, (I) AN OFFICER'S CERTIFICATE (AND, IF
APPLICABLE, A BENEFIT PLAN OPINION), AS DESCRIBED IN THE FOREGOING PARAGRAPH,
SHALL NOT BE REQUIRED, AND (II) THE FOLLOWING CONDITIONS SHALL APPLY:
1. ANY TRANSFEREE OF THIS CERTIFICATE WILL BE DEEMED TO HAVE
REPRESENTED, BY VIRTUE OF ITS ACQUISITION OR HOLDING OF THIS CERTIFICATE
(OR INTEREST HEREIN), THAT EITHER (A) SUCH TRANSFEREE IS NOT AN EMPLOYEE
BENEFIT OR OTHER PLAN SUBJECT TO THE PROHIBITED TRANSACTION PROVISIONS OF
ERISA OR SECTION 4975 OF THE CODE, OR ANY PERSON (INCLUDING AN INVESTMENT
MANAGER, A NAMED FIDUCIARY OR A TRUSTEE OF ANY SUCH PLAN) ACTING, DIRECTLY
OR INDIRECTLY, ON BEHALF OF OR PURCHASING THIS CERTIFICATE WITH "PLAN
ASSETS" OF ANY SUCH PLAN (A "PLAN INVESTOR"), (B) SUCH TRANSFEREE IS AN
INSURANCE COMPANY, THE SOURCE OF FUNDS TO BE USED BY IT TO ACQUIRE OR HOLD
THIS CERTIFICATE IS AN "INSURANCE COMPANY GENERAL ACCOUNT" (WITHIN THE
MEANING OF DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION
("PTCE") 95-60), AND THE CONDITIONS IN SECTION I AND III OF PTCE 95-60 HAVE
BEEN SATISFIED (EACH ENTITY THAT SATISFIES THIS CLAUSE (B), A "COMPLYING
INSURANCE COMPANY") OR (C) THIS CERTIFICATE WAS RATED "BBB-" OR BETTER (OR
ITS EQUIVALENT) BY AT LEAST ONE OF THE RATING AGENCIES AT THE TIME OF SUCH
TRANSFEREE'S ACQUISITION OF THIS CERTIFICATE (OR INTEREST HEREIN); AND
2. IF THIS CERTIFICATE (OR ANY INTEREST HEREIN) IS ACQUIRED OR HELD IN
VIOLATION OF THE PROVISIONS OF THE PRECEDING PARAGRAPH, THEN THE LAST
PRECEDING TRANSFEREE THAT EITHER (I) IS NOT A PLAN INVESTOR, (II) IS A
COMPLYING INSURANCE COMPANY OR (III) ACQUIRED THIS CERTIFICATE AT A TIME
WHEN THIS CERTIFICATE WAS RATED "BBB-" OR BETTER (OR ITS EQUIVALENT) BY AT
LEAST ONE OF THE RATING AGENCIES SHALL BE RESTORED, TO THE EXTENT PERMITTED
BY LAW, TO ALL RIGHTS AND OBLIGATIONS AS
A-47
BENEFICIAL HOLDER THEREOF RETROACTIVE TO THE DATE OF TRANSFER OF THIS
CERTIFICATE BY SUCH PRECEDING TRANSFEREE. THE TRUSTEE SHALL BE UNDER NO
LIABILITY TO ANY PERSON FOR MAKING ANY PAYMENTS DUE ON THIS CERTIFICATE TO
SUCH PRECEDING TRANSFEREE.
ANY PURPORTED BENEFICIAL HOLDER WHOSE ACQUISITION OR HOLDING OF THIS CERTIFICATE
(OR INTEREST HEREIN) WAS EFFECTED IN VIOLATION OF THE RESTRICTIONS IN SECTION
5.01(g) OF THE POOLING AGREEMENT SHALL INDEMNIFY AND HOLD HARMLESS THE COMPANY,
THE TRUSTEE, THE MASTER SERVICER, THE TRUST AND THE UNDERWRITER FROM AND AGAINST
ANY AND ALL LIABILITIES, CLAIMS, COSTS OR EXPENSES INCURRED BY SUCH PARTIES AS A
RESULT OF SUCH ACQUISITION OR HOLDING.
The Class II-B-2 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as described in the
Pooling Agreement.
Series 2001-S8 Portion of the Class II-B-2 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $5,666,000.00
Class II-B-2 Certificate Interest Rate: 6.750%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-B-2 Principal Balance
as of the Cut-Off Date: $5,666,000.00
Cede & Co.
Registered Owner
A-48
Exhibit A
CUSIP 939335 QP3
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-B-3
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended (the
"Code").
The issue date of this Certificate is July 30, 2001.
Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
NO TRANSFER OF THIS CLASS II-B-3 CERTIFICATE WILL BE MADE UNLESS THE TRUSTEE HAS
RECEIVED (I) AN OFFICER'S CERTIFICATE IN THE FORM DESCRIBED IN SECTION 5.01(g)
OF THE POOLING AGREEMENT AND (II) IF SO INDICATED IN SUCH OFFICER'S CERTIFICATE,
AN OPINION OF COUNSEL ACCEPTABLE TO AND IN FORM AND SUBSTANCE SATISFACTORY TO
THE TRUSTEE AND THE COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING OF THIS
CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT
IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE, AND WILL NOT SUBJECT THE TRUSTEE, THE MASTER SERVICER OR THE
COMPANY TO ANY OBLIGATION OR LIABILITY (INCLUDING OBLIGATIONS OR LIABILITIES
UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE) IN ADDITION TO THOSE
UNDERTAKEN IN THE POOLING AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN
EXPENSE OF THE TRUSTEE, THE MASTER SERVICER OR THE COMPANY.
NOTWITHSTANDING THE FOREGOING PARAGRAPH, WITH RESPECT TO THE TRANSFER OF THIS
CLASS II-B-3 CERTIFICATE TO DTC OR ANY OTHER CLEARING AGENCY OR ANY SUBSEQUENT
TRANSFER OF ANY INTEREST IN THIS CERTIFICATE FOR SO LONG AS THIS CERTIFICATE IS
HELD BY DTC OR ANY OTHER CLEARING AGENCY, (I) AN OFFICER'S CERTIFICATE (AND, IF
APPLICABLE, A BENEFIT PLAN OPINION), AS DESCRIBED IN THE FOREGOING PARAGRAPH,
SHALL NOT BE REQUIRED, AND (II) THE FOLLOWING CONDITIONS SHALL APPLY:
1. ANY TRANSFEREE OF THIS CERTIFICATE WILL BE DEEMED TO HAVE
REPRESENTED, BY VIRTUE OF ITS ACQUISITION OR HOLDING OF THIS CERTIFICATE
(OR INTEREST HEREIN), THAT EITHER (A) SUCH TRANSFEREE IS NOT AN EMPLOYEE
BENEFIT OR OTHER PLAN SUBJECT TO THE PROHIBITED TRANSACTION PROVISIONS OF
ERISA OR SECTION 4975 OF THE CODE, OR ANY PERSON (INCLUDING AN INVESTMENT
MANAGER, A NAMED FIDUCIARY OR A TRUSTEE OF ANY SUCH PLAN) ACTING, DIRECTLY
OR INDIRECTLY, ON BEHALF OF OR PURCHASING THIS CERTIFICATE WITH "PLAN
ASSETS" OF ANY SUCH PLAN (A "PLAN INVESTOR"), (B) SUCH TRANSFEREE IS AN
INSURANCE COMPANY, THE SOURCE OF FUNDS TO BE USED BY IT TO ACQUIRE OR HOLD
THIS CERTIFICATE IS AN "INSURANCE COMPANY GENERAL ACCOUNT" (WITHIN THE
MEANING OF DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION
("PTCE") 95-60), AND THE CONDITIONS IN SECTION I AND III OF PTCE 95-60 HAVE
BEEN SATISFIED (EACH ENTITY THAT SATISFIES THIS CLAUSE (B), A "COMPLYING
INSURANCE COMPANY") OR (C) THIS CERTIFICATE WAS RATED "BBB-" OR BETTER (OR
ITS EQUIVALENT) BY AT LEAST ONE OF THE RATING AGENCIES AT THE TIME OF SUCH
TRANSFEREE'S ACQUISITION OF THIS CERTIFICATE (OR INTEREST HEREIN); AND
2. IF THIS CERTIFICATE (OR ANY INTEREST HEREIN) IS ACQUIRED OR HELD IN
VIOLATION OF THE PROVISIONS OF THE PRECEDING PARAGRAPH, THEN THE LAST
PRECEDING TRANSFEREE THAT EITHER (I) IS NOT A PLAN INVESTOR, (II) IS A
COMPLYING INSURANCE COMPANY OR (III) ACQUIRED THIS CERTIFICATE AT A TIME
WHEN THIS CERTIFICATE WAS RATED "BBB-" OR BETTER (OR ITS EQUIVALENT) BY AT
LEAST ONE OF THE RATING AGENCIES SHALL BE RESTORED, TO THE EXTENT PERMITTED
BY LAW, TO ALL RIGHTS AND OBLIGATIONS AS
A-49
BENEFICIAL HOLDER THEREOF RETROACTIVE TO THE DATE OF TRANSFER OF THIS
CERTIFICATE BY SUCH PRECEDING TRANSFEREE. THE TRUSTEE SHALL BE UNDER NO
LIABILITY TO ANY PERSON FOR MAKING ANY PAYMENTS DUE ON THIS CERTIFICATE TO
SUCH PRECEDING TRANSFEREE.
ANY PURPORTED BENEFICIAL HOLDER WHOSE ACQUISITION OR HOLDING OF THIS CERTIFICATE
(OR INTEREST HEREIN) WAS EFFECTED IN VIOLATION OF THE RESTRICTIONS IN SECTION
5.01(g) OF THE POOLING AGREEMENT SHALL INDEMNIFY AND HOLD HARMLESS THE COMPANY,
THE TRUSTEE, THE MASTER SERVICER, THE TRUST AND THE UNDERWRITER FROM AND AGAINST
ANY AND ALL LIABILITIES, CLAIMS, COSTS OR EXPENSES INCURRED BY SUCH PARTIES AS A
RESULT OF SUCH ACQUISITION OR HOLDING.
The Class II-B-3 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as described in the
Pooling Agreement.
Series 2001-S8 Portion of the Class II-B-3 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $4,249,000.00
Class II-B-3 Certificate Interest Rate: 6.750%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-B-3 Principal Balance
as of the Cut-Off Date: $4,249,000.00
Cede & Co.
Registered Owner
A-50
Exhibit A
CUSIP 939335 QV0
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-B-4
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended (the
"Code").
The issue date of this Certificate is July 30, 2001.
NO TRANSFER OF THIS CLASS II-B-4 CERTIFICATE WILL BE MADE UNLESS THE
TRUSTEE HAS RECEIVED (I) AN OFFICER'S CERTIFICATE IN THE FORM DESCRIBED IN
SECTION 5.01(d) OF THE POOLING AGREEMENT AND (II) IF SO INDICATED IN SUCH
OFFICER'S CERTIFICATE, AN OPINION OF COUNSEL ACCEPTABLE TO AND IN FORM AND
SUBSTANCE SATISFACTORY TO THE TRUSTEE AND THE COMPANY TO THE EFFECT THAT
THE PURCHASE AND HOLDING OF THIS CERTIFICATE ARE PERMISSIBLE UNDER
APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED
TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND
WILL NOT SUBJECT THE TRUSTEE, THE MASTER SERVICER OR THE COMPANY TO ANY
OBLIGATION OR LIABILITY (INCLUDING OBLIGATIONS OR LIABILITIES UNDER SECTION
406 OF ERISA OR SECTION 4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN
IN THE POOLING AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE
OF THE TRUSTEE, THE MASTER SERVICER OR THE COMPANY.
THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933. THESE SECURITIES MAY NOT BE OFFERED,
SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF REGISTRATION
OR THE AVAILABILITY OF AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT OF 1933 AND EXCEPT IN ACCORDANCE WITH SECTION 5.01(e) OF THE POOLING
AGREEMENT.
The Class II-B-4 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as described in the
Pooling Agreement.
Series 2001-S8 Portion of the Class II-B-4 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $2,833,000.00
Class II-B-4 Certificate Interest Rate: 6.750%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-B-4 Principal Balance
as of the Cut-Off Date: $2,833,000.00
---------------------
Registered Owner
A-51
Exhibit A
CUSIP 939335 QW8
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-B-5
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended (the
"Code").
The issue date of this Certificate is July 30, 2001.
NO TRANSFER OF THIS CLASS II-B-5 CERTIFICATE WILL BE MADE UNLESS THE
TRUSTEE HAS RECEIVED (I) AN OFFICER'S CERTIFICATE IN THE FORM DESCRIBED IN
SECTION 5.01(d) OF THE POOLING AGREEMENT AND (II) IF SO INDICATED IN SUCH
OFFICER'S CERTIFICATE, AN OPINION OF COUNSEL ACCEPTABLE TO AND IN FORM AND
SUBSTANCE SATISFACTORY TO THE TRUSTEE AND THE COMPANY TO THE EFFECT THAT
THE PURCHASE AND HOLDING OF THIS CERTIFICATE ARE PERMISSIBLE UNDER
APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED
TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND
WILL NOT SUBJECT THE TRUSTEE, THE MASTER SERVICER OR THE COMPANY TO ANY
OBLIGATION OR LIABILITY (INCLUDING OBLIGATIONS OR LIABILITIES UNDER SECTION
406 OF ERISA OR SECTION 4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN
IN THE POOLING AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE
OF THE TRUSTEE, THE MASTER SERVICER OR THE COMPANY.
THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933. THESE SECURITIES MAY NOT BE OFFERED,
SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF REGISTRATION
OR THE AVAILABILITY OF AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT OF 1933 AND EXCEPT IN ACCORDANCE WITH SECTION 5.01(e) OF THE POOLING
AGREEMENT.
The Class II-B-5 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as described in the
Pooling Agreement.
Series 2001-S8 Portion of the Class II-B-5 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $1,416,000.00
Class II-B-5 Certificate Interest Rate: 6.750%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-B-5 Principal Balance
as of the Cut-Off Date: $1,416,000.00
---------------------
Registered Owner
A-52
Exhibit A
CUSIP 939335 QX6
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class II-B-6
Evidencing a Percentage Interest in a trust fund whose assets consist of
interests in another trust fund whose assets consist of, among other things, a
pool of conventional one- to four-family mortgage loans formed and administered
by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended (the
"Code").
The issue date of this Certificate is July 30, 2001.
NO TRANSFER OF THIS CLASS II-B-6 CERTIFICATE WILL BE MADE UNLESS THE
TRUSTEE HAS RECEIVED (I) AN OFFICER'S CERTIFICATE IN THE FORM DESCRIBED IN
SECTION 5.01(d) OF THE POOLING AGREEMENT AND (II) IF SO INDICATED IN SUCH
OFFICER'S CERTIFICATE, AN OPINION OF COUNSEL ACCEPTABLE TO AND IN FORM AND
SUBSTANCE SATISFACTORY TO THE TRUSTEE AND THE COMPANY TO THE EFFECT THAT
THE PURCHASE AND HOLDING OF THIS CERTIFICATE ARE PERMISSIBLE UNDER
APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED
TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND
WILL NOT SUBJECT THE TRUSTEE, THE MASTER SERVICER OR THE COMPANY TO ANY
OBLIGATION OR LIABILITY (INCLUDING OBLIGATIONS OR LIABILITIES UNDER SECTION
406 OF ERISA OR SECTION 4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN
IN THE POOLING AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE
OF THE TRUSTEE, THE MASTER SERVICER OR THE COMPANY.
THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933. THESE SECURITIES MAY NOT BE OFFERED,
SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF REGISTRATION
OR THE AVAILABILITY OF AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT OF 1933 AND EXCEPT IN ACCORDANCE WITH SECTION 5.01(e) OF THE POOLING
AGREEMENT.
The Class II-B-6 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as described in the
Pooling Agreement.
Series 2001-S8 Portion of the Class II-B-6 Principal Balance
as of the Cut-Off Date Evidenced by this
Certificate: $1,891,975.00
Class II-B-6 Certificate Interest Rate: 6.750%
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class II-B-6 Principal Balance
as of the Cut-Off Date: $1,891,975.00
---------------------
Registered Owner
A-53
Exhibit A
CUSIP 939335 QR9
WAMU MORTGAGE PASS-THROUGH CERTIFICATE
Class R-2
Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
IF THE PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE COMPANY AND THE
CERTIFICATE REGISTRAR THAT (1) SUCH TRANSFEREE IS NOT EITHER (A) THE UNITED
STATES, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY FOREIGN GOVERNMENT, ANY
INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF ANY OF THE
FOREGOING, (B) ANY ORGANIZATION (OTHER THAN A COOPERATIVE DESCRIBED IN SECTION
521 OF THE CODE) WHICH IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE
UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE
CODE, (C) ANY ORGANIZATION DESCRIBED IN SECTION 1381(a)(2)(C) OF THE CODE (ANY
SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A), (B), OR (C) BEING
HEREINAFTER REFERRED TO AS A "DISQUALIFIED ORGANIZATION"), OR (D) AN AGENT OF A
DISQUALIFIED ORGANIZATION AND (2) NO PURPOSE OF SUCH TRANSFER IS TO ENABLE THE
TRANSFER TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX. SUCH AFFIDAVIT SHALL
INCLUDE CERTAIN REPRESENTATIONS AS TO THE FINANCIAL CONDITION OF THE PROPOSED
TRANSFEREE. NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE REGISTER OF ANY
TRANSFER, SALE OR OTHER DISPOSITION OF THIS CLASS R-2 CERTIFICATE TO A
DISQUALIFIED ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH
REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND
SUCH PERSON SHALL NOT BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE
HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS
CERTIFICATE. EACH HOLDER OF A CLASS R-2 CERTIFICATE BY ACCEPTANCE OF THIS
CERTIFICATE SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS
PARAGRAPH.
IN THE CASE OF ANY CLASS R-2 CERTIFICATE PRESENTED FOR REGISTRATION IN THE NAME
OF ANY PERSON, THE TRUSTEE SHALL REQUIRE (I) AN OFFICER'S CERTIFICATE IN THE
FORM DESCRIBED IN SECTION 5.01(d) OF THE POOLING AGREEMENT AND (II) IF SO
INDICATED IN SUCH OFFICER'S CERTIFICATE, AN OPINION OF COUNSEL ACCEPTABLE TO AND
IN FORM AND SUBSTANCE SATISFACTORY TO THE TRUSTEE AND THE COMPANY TO THE EFFECT
THAT THE PURCHASE AND HOLDING OF A CLASS R-2 CERTIFICATE ARE PERMISSIBLE UNDER
APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED
TRANSACTION UNDER SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE
TRUSTEE, THE MASTER SERVICER OR THE COMPANY TO ANY OBLIGATION OR LIABILITY
(INCLUDING OBLIGATIONS OR LIABILITIES UNDER SECTION 406 OF ERISA OR SECTION 4975
OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING AGREEMENT, WHICH
OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE TRUSTEE, THE MASTER SERVICER
OR THE COMPANY.
Solely for U.S. federal income tax purposes, this Certificate represents a
"residual interest" in a "real estate mortgage investment conduit," as those
terms are defined in Sections 860G and 860D, respectively, of the Internal
Revenue Code of 1986, as amended.
Series 2001-S8 Percentage Interest evidenced by this Class R-2
Certificate in the distributions to be made with
respect to the Class R-2 Certificates:__________%
Class R-2 Certificate Interest Rate: 6.750%. Additionally the
Class R-2 Certificates are entitled to the Residual Distribution
Amount as defined in the Pooling Agreement.
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class R-2 Principal Balance as of the Cut-Off Date: $50.00
------------------
Registered Owner
Certificate No. _________
A-54
Exhibit B
CUSIP 939335 XX0
XXXX MORTGAGE PASS-THROUGH CERTIFICATE
Class R-1
Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
IF THE PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE COMPANY AND THE
CERTIFICATE REGISTRAR THAT (1) SUCH TRANSFEREE IS NOT EITHER (A) THE UNITED
STATES, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY FOREIGN GOVERNMENT, ANY
INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF ANY OF THE
FOREGOING, (B) ANY ORGANIZATION (OTHER THAN A COOPERATIVE DESCRIBED IN SECTION
521 OF THE CODE) WHICH IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE
UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE
CODE, (C) ANY ORGANIZATION DESCRIBED IN SECTION 1381(a)(2)(C) OF THE CODE (ANY
SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A), (B), OR (C) BEING
HEREINAFTER REFERRED TO AS A "DISQUALIFIED ORGANIZATION"), OR (D) AN AGENT OF A
DISQUALIFIED ORGANIZATION AND (2) NO PURPOSE OF SUCH TRANSFER IS TO ENABLE THE
TRANSFER TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX. SUCH AFFIDAVIT SHALL
INCLUDE CERTAIN REPRESENTATIONS AS TO THE FINANCIAL CONDITION OF THE PROPOSED
TRANSFEREE. NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE REGISTER OF ANY
TRANSFER, SALE OR OTHER DISPOSITION OF THIS CLASS R-1 CERTIFICATE TO A
DISQUALIFIED ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH
REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND
SUCH PERSON SHALL NOT BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE
HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS
CERTIFICATE. EACH HOLDER OF A CLASS R-1 CERTIFICATE BY ACCEPTANCE OF THIS
CERTIFICATE SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS
PARAGRAPH.
IN THE CASE OF ANY CLASS R-1 CERTIFICATE PRESENTED FOR REGISTRATION IN THE NAME
OF ANY PERSON, THE TRUSTEE SHALL REQUIRE (I) AN OFFICER'S CERTIFICATE IN THE
FORM DESCRIBED IN SECTION 5.01(d) OF THE POOLING AGREEMENT AND (II) IF SO
INDICATED IN SUCH OFFICER'S CERTIFICATE, AN OPINION OF COUNSEL ACCEPTABLE TO AND
IN FORM AND SUBSTANCE SATISFACTORY TO THE TRUSTEE AND THE COMPANY TO THE EFFECT
THAT THE PURCHASE AND HOLDING OF A CLASS R-1 CERTIFICATE ARE PERMISSIBLE UNDER
APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED
TRANSACTION UNDER SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE
TRUSTEE, THE MASTER SERVICER OR THE COMPANY TO ANY OBLIGATION OR LIABILITY
(INCLUDING OBLIGATIONS OR LIABILITIES UNDER SECTION 406 OF ERISA OR SECTION 4975
OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING AGREEMENT, WHICH
OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE TRUSTEE, THE MASTER SERVICER
OR THE COMPANY.
Solely for U.S. federal income tax purposes, this Certificate represents a
"residual interest" in a "real estate mortgage investment conduit," as those
terms are defined in Sections 860G and 860D, respectively, of the Internal
Revenue Code of 1986, as amended.
Series 2001-S8 Percentage Interest evidenced by this Class R-1
Certificate in the distributions to be made with
respect to the Class R-1 Certificates: __________%
Class R-1 Certificate Interest Rate: 6.750%. Additionally the
Class R-1 Certificates are entitled to Excess Liquidation Proceeds and the
Residual Distribution Amount as defined in the Pooling Agreement.
Cut-Off Date: July 1, 2001
First Distribution Date: August 27, 2001
Last Scheduled Distribution Date: August 25, 2031
Class R-1 Principal Balance as of the Cut-Off Date: $50.00
------------------
Registered Owner
Certificate No. _________
B-1
This Certificate does not represent an obligation of or interest in
Washington Mutual Mortgage Securities Corp. or any of its affiliates. Neither
this Certificate nor the underlying Mortgage Loans are guaranteed by any agency
or instrumentality of the United States.
This certifies that the above-named Registered Owner is the registered
owner of certain interests in a trust fund (the "REMIC I Trust Fund") whose
assets consist of, among other things, a pool (the "Mortgage Pool") of
conventional one- to four-family mortgage loans (the "Mortgage Loans"), formed
and administered by Washington Mutual Mortgage Securities Corp. (the "Company"),
which term includes any successor entity under the Pooling Agreement referred to
below. The Mortgage Pool was created pursuant to a Pooling and Servicing
Agreement, dated as of the Cut-Off Date stated above (the "Pooling Agreement"),
between the Company and State Street Bank and Trust Company, as Trustee (the
"Trustee"), a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Pooling Agreement. Nothing herein shall
be deemed inconsistent with such meanings, and in the event of any conflict
between the Pooling Agreement and the terms of this Certificate, the Pooling
Agreement shall control. This Certificate is issued under and is subject to the
terms, provisions and conditions of the Pooling Agreement, to which Pooling
Agreement the Holder of this Certificate, by virtue of the acceptance hereof,
assents and by which such Holder is bound.
Distributions will be made, pursuant to the Pooling Agreement, on the
25th day of each month or, if such 25th day is not a Business Day, the Business
Day immediately following (the "Distribution Date"), commencing on the first
Distribution Date specified above, to the Person in whose name this Certificate
is registered at the close of business on the last day (or if such last day is
not a Business Day, the Business Day immediately preceding such last day) of the
month immediately preceding the month of such distribution (the "Record Date"),
to the extent of such Certificateholder's Percentage Interest represented by
this Certificate in the portion of the REMIC I Available Distribution Amount for
such Distribution Date then distributable on the Certificates of this Class, as
specified in Section 4.01 of the Pooling Agreement.
Distributions on this Certificate will be made by the Trustee by wire
transfer or check mailed to the address of the Person entitled thereto, as such
name and address shall appear on the Certificate Register. Notwithstanding the
above, the final distribution on this Certificate will be made after due notice
by the Trustee of the pendency of such distribution and only upon presentation
and surrender of this Certificate to the Certificate Registrar.
Reference is hereby made to the further provisions of this Certificate
set forth below, which further provisions shall for all purposes have the same
effect as if set forth at this place.
Unless the certificate of authentication hereon has been executed by or
on behalf of the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Pooling Agreement or be valid for any purpose.
B-2
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.
STATE STREET BANK AND TRUST COMPANY,
as Trustee
By:
-----------------------------------
(TRUSTEE'S CERTIFICATE OF AUTHENTICATION)
This is one of the Certificates referred to in the within-mentioned
Pooling Agreement.
STATE STREET BANK AND TRUST COMPANY,
as Trustee
By:
--------------------------
Dated:
-----------------------
B-3
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
WaMu MORTGAGE PASS-THROUGH CERTIFICATE
This Certificate is one of a duly authorized issue of Certificates
designated as WaMu Mortgage Pass-Through Certificates of the Series and Class
specified hereon (herein called the "Certificates") and representing certain
interests in the REMIC I Trust Fund.
The Certificates do not represent an obligation of, or an interest in,
the Company or any of its affiliates and are not insured or guaranteed by any
governmental agency. The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Pooling Agreement. In the event funds
are advanced with respect to any Mortgage Loan, such advance is reimbursable to
the Master Servicer from the related recoveries on such Mortgage Loan or from
other cash deposited in the Certificate Account to the extent that such advance
is not otherwise recoverable.
As provided in the Pooling Agreement, withdrawals from the Certificate
Account may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement to the Master Servicer
of advances made, or certain expenses incurred, by it.
The Pooling Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Company and the rights of the Certificateholders under the
Pooling Agreement at any time by the Company, the Master Servicer and the
Trustee with the consent of the Holders of the Certificates evidencing
Percentage Interests aggregating not less than 66% of the REMIC II Trust Fund.
The Pooling Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.
As provided in the Pooling Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices of the Certificate Registrar or the office maintained by
the Trustee in the City and State of New York, duly endorsed by, or accompanied
by an assignment in the form below or other written instrument of transfer in
form satisfactory to the Trustee or any Authenticating Agent duly executed by,
the Holder hereof or such Holder's attorney duly authorized in writing, and
thereupon one or more new Certificates of Authorized Denominations evidencing
the same Percentage Interest set forth hereinabove will be issued to the
designated transferee or transferees.
The Certificates are issuable only as registered Certificates without
coupons in Authorized Denominations specified in the Pooling Agreement. As
provided in the Pooling Agreement and subject to certain limitations therein set
forth, Certificates are exchangeable for new Certificates of Authorized
Denominations evidencing the same aggregate interest in the portion of the REMIC
I Available Distribution Amount distributable on this Class of Certificate, as
requested by the Holder surrendering the same.
A reasonable service charge may be made for any such registration of
transfer or exchange, and the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.
The Company, the Trustee and the Certificate Registrar and any agent of
the Company, the Trustee or the Certificate Registrar may treat the Person in
whose name this Certificate is registered as the owner hereof for all purposes,
and neither the Company, the Trustee, the Certificate Registrar nor any such
agent shall be affected by notice to the contrary.
B-4
The obligations created by the Pooling Agreement and the trust funds
created thereby shall terminate upon (i) the later of the maturity or other
liquidation (including purchase by the Master Servicer) of the last Mortgage
Loan remaining in the REMIC I Trust Fund or the disposition of all property
acquired upon foreclosure or deed in lieu of foreclosure of any Mortgage Loan,
and (ii) the payment to Certificateholders of all amounts held by the Trustee
and required to be paid to them pursuant to the Pooling Agreement. In the event
that the Company or the Master Servicer purchases any Mortgage Loan pursuant to
the Pooling Agreement, the Pooling Agreement generally requires that the Trustee
distribute to the Certificateholders in the aggregate an amount equal to 100% of
the unpaid Principal Balance of such Mortgage Loan, plus unpaid accrued interest
thereon at the applicable Pass-Through Rate to the last day of the month in
which such purchase occurs. The Pooling Agreement permits, but does not require,
the Master Servicer to purchase from the REMIC I Trust Fund all Mortgage Loans
at the time subject thereto and all property acquired in respect of any Mortgage
Loan upon payment to the Certificateholders of the amounts specified in the
Pooling Agreement. The exercise of such right will effect early retirement of
the Certificates, the Master Servicer's right to purchase being subject to the
aggregate Principal Balance of the Mortgage Loans at the time of purchase being
less than the Clean-Up Call Percentage of the aggregate Principal Balance of the
Mortgage Loans as of the Cut-Off Date.
B-5
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sell(s) and assign(s) and
transfer(s) unto ______________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name and address, including postal zip code of
assignee. Please insert social security or other identifying number of
assignee.)
the within WaMu Mortgage Pass-Through Certificate and hereby irrevocably
constitutes and appoints
--------------------------------------------------------------------------------
Attorney to transfer said Certificate on the Certificate Register, with full
power of substitution in the premises.
Dated:
--------------------- -----------------------------------------------
Signature Guaranteed
NOTICE: The signature to this assignment must
correspond with the name as written
upon the face of the within instrument
in every particular, without alteration
or enlargement or any change whatever.
This Certificate does not represent an
obligation of or an interest in
Washington Mutual Mortgage Securities
Corp. or any of its affiliates. Neither
this Certificate nor the underlying
Mortgage Loans are guaranteed by any
agency or instrumentality of the United
States.
B-6
Exhibit C
[Reserved]
C-1
Exhibit D
Mortgage Loan Schedule
D-1
Exhibit E
SELLING AND SERVICING
CONTRACT
This Selling and Servicing Contract (this "Agreement") is made and entered into
by Washington Mutual Mortgage Securities Corp. and its successors and assigns
("Washington Mutual Mortgage") and the entity identified below and its
successors and assigns (the "Company").
WITNESSETH:
WHEREAS, this Company wishes to sell first lien residential mortgage
loans to, and service first lien residential mortgage loans on behalf of,
Washington Mutual Mortgage; and
WHEREAS, the Company has submitted a Seller Application to Washington
Mutual Mortgage and has been approved by Washington Mutual Mortgage for
participation in the Washington Mutual Mortgage Purchase Programs; and
WHEREAS, the Company has received and reviewed the Washington Mutual
Mortgage Purchase Programs Seller Guide (the "Seller Guide"), as well as the
Washington Mutual Mortgage Servicing Guide (the "Servicing Guide" and, together
with the Seller Guide, the "Guides"), and understands each and every provision
thereof;
NOW, THEREFORE, in consideration of the premises and of the mutual
agreements herein contained, Washington Mutual Mortgage and the Company hereby
agree as follows:
1. GUIDES. The Guides, which set forth the terms and conditions under
which Washington Mutual Mortgage may elect to purchase mortgage loans from the
Company, and the Company shall service mortgage loans on behalf of Washington
Mutual Mortgage, are a supplement to this Agreement and such Guides, as may be
amended or supplemented from time to time by Washington Mutual Mortgage, are
incorporated into this Agreement in full by reference and made a part hereof as
fully as if set forth at length herein. All capitalized terms used and not
defined herein have the meanings ascribed to them in the Guides.
2. COMPANY'S DUTIES. The Company shall diligently perform all duties
incident to the origination, sale and servicing of the mortgage loans subject to
this Agreement. In the performance of its servicing duties, the Company shall
exercise the same degree of care it exercises when servicing mortgage loans for
its own account, but in no event shall the Company exercise less care than a
reasonable prudent servicer would exercise under similar circumstances. In
addition, the Company shall comply with all of the provisions of the Guides and
with all other requirements and instructions of Washington Mutual Mortgage. The
Company shall perform such duties at its sole expense, except as otherwise
expressly provided in the Guides.
3. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY; REMEDIES
OF WASHINGTON MUTUAL MORTGAGE. With respect to each mortgage loan sold by the
Company to Washington Mutual Mortgage pursuant to the terms of this Agreement,
the Company shall make all of the representations, warranties and covenants set
forth in the Guide and, in the event of the breach of any of such
representations, warranties and covenants, Washington Mutual Mortgage shall have
all of the remedies available at law or in equity, as well as all of the
remedies set forth in the Guide, including, but not limited to, repurchase and
indemnification. The representations and warranties made by the Company
E-1
with respect to any mortgage loan subject to this Agreement, as well as the
remedies available to Washington Mutual Mortgage upon the breach thereof, shall
survive: (a) any investigation regarding the mortgage loan conducted by
Washington Mutual Mortgage, its assignees or designees, (b) the liquidation of
the mortgage loan, (c) the purchase of the mortgage loan by Washington Mutual
Mortgage, its assignee or designee, (d) the repurchase of the mortgage loan by
the Company and (e) the termination of this Agreement.
4. COMPENSATION. The Company shall be compensated for its services
hereunder as specified in the Guides.
5. NO ASSIGNMENT. This Agreement may not be assigned by the Company
without the prior written consent of Washington Mutual Mortgage. The Company
hereby consents to the assignment by Washington Mutual Mortgage of all or any
part of its rights and obligations under this Agreement to any affiliate
designated by Washington Mutual Mortgage. Any other transfer by Washington
Mutual Mortgage will be allowed and be effective upon written notice by
Washington Mutual Mortgage to the Company.
6. PRIOR AGREEMENTS. This Agreement supersedes any prior agreements and
understandings between Washington Mutual Mortgage and the Company governing the
subject matter hereof; provided, however, the Company shall not be released from
any responsibility or liability that may have arisen under such agreements and
understanding.
7. EFFECTIVE DATE OF AGREEMENT. This Agreement is not effective until
it is executed and accepted by Washington Mutual Mortgage at its home office in
Illinois.
8. NOTICES. All notices, requests, demands or other communications that
are to be given under this Agreement shall be in writing, addressed to the
appropriate parties, and shall be sent by certified mail, return receipt
requested, postage prepaid, if to the Company, at the address below and, if to
Washington Mutual Mortgage, to the appropriate address or facsimile number
specified in the Guides. Any such notice, request, demand or other communication
shall be deemed effective upon receipt.
9. INDEPENDENT CONTRACTOR. At no time shall the Company represent that
it is acting as an agent, partner or joint venturer of Washington Mutual
Mortgage. The Company shall at all times act as an independent contracting
party.
10. AMENDMENT. This Agreement may not be amended or modified orally,
and no provision of this Agreement may be waived or amended, except in writing
signed by the party against whom enforcement is sought. Such a written waiver or
amendment must expressly reference this Agreement. However, by their terms the
Guides may be amended or supplemented by Washington Mutual Mortgage from time to
time. Any such amendment(s) to the Guides shall be in writing and be binding
upon the parties hereto on and after the effective date specified therein.
11. MISCELLANEOUS. This Agreement, including all documents incorporated
by reference herein, constitutes the entire understanding between the parties
hereto and supersedes all other agreements, covenants, representations,
warranties, understandings and communications between the parties, whether
written or oral, with respect to the transactions contemplated by this
Agreement. All section headings contained herein are for convenience only and
shall not be construed as part of this Agreement. Any provision of this
Agreement that is prohibited or unenforceable in any jurisdiction shall as to
such jurisdiction be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining portions hereof or affecting
the validity or enforceability of such provision in any other jurisdiction, and
to this end, the provisions hereof are severable. This Agreement shall be
governed by, and construed and enforced in accordance with, applicable federal
laws and laws of the State of Illinois, without reference to conflict of laws
principles. This Agreement may be executed in one
E-2
or more counterparts, each of which shall constitute an original and all of
which shall constitute the same Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement by proper
officials duly authorized on the dates hereinafter set forth. This Agreement
shall take effect as of the date of its execution in original or facsimile
signature by a duly authorized officer of Washington Mutual Mortgage.
------------------------------- ----------------------------------
Name of the Company Company I.D. Number
------------------------------- ----------------------------------
Type of organization Organized under laws of
--------------------------------------------------------------------------------
Principal place of business: xxxxxx xxxxxxx, xxxx, xxxxx, zip code
--------------------------------------------------------------------------------
Typed name and title of the Company's authorized officer
-------------------------------------------------- ----------------------
Signature of the Company's authorized officer Date
AGREED TO AND ACCEPTED BY WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
--------------------------------------------------------------------------------
Typed name and title of authorized representative
------------------------------------------------------- --------------------
Signature of authorized representative Date
E-3
Exhibit F
FORM OF TRANSFEROR CERTIFICATE FOR
JUNIOR SUBORDINATE CERTIFICATES
[Date]
State Street Bank and Trust Company, as Trustee
000 Xxxxxxxx Xxxxxx
Xxxxxx, XX 00000
Attn: Corporate Trust Department, Washington Mutual 2001-S8
Re: Purchase of Washington Mutual Mortgage Securities Corp. WaMu Mortgage
Pass-Through Certificates Series 2001-S8, Class [ ] (the
"Certificates")
Ladies and Gentlemen:
In connection with our disposition of the above Certificates we certify
that (a) we understand the Certificates have not been registered under the
Securities Act of 1933, as amended (the "Act") and are being disposed by us in a
transaction that is exempt from the registration requirements of the Act, and
(b) we have not offered or sold any certificates to, or solicited offers to buy
any Certificates from, any person, or otherwise approached or negotiated with
any person with respect thereto, or taken any other action which would result in
a violation of Section 5 of the Act.
Very truly yours,
[Name of Transferor]
By:
--------------------------------
Authorized Officer
F-1
Exhibit G
FORM OF TRANSFEREE'S AGREEMENT FOR
JUNIOR SUBORDINATE CERTIFICATES
[Date]
State Street Bank and Trust Company, as Trustee
000 Xxxxxxxx Xxxxxx
Xxxxxx, XX 00000
Attn: Corporate Trust Department, Washington Mutual 2001-S8
Washington Mutual Mortgage Securities Corp.
00 X. Xxxxxxx Xxxxx
Xxxxxx Xxxxx, Xxxxxxxx 00000
The undersigned (the "Purchaser") proposes to purchase Class [ ]
Certificates evidencing an undivided interest in Washington Mutual Mortgage
Securities Corp. WaMu Mortgage Pass-Through Certificates, Series 2001-S8 (the
"Purchased Certificates") in the principal amount of $______________. In doing
so, the Purchaser hereby acknowledges and agrees as follows:
Section 1. Definitions. Each capitalized term used herein and not
otherwise defined herein shall have the meaning ascribed to it in the Pooling
and Servicing Agreement, dated as of July 1, 2001 (the "Pooling Agreement"), by
and between Washington Mutual Mortgage Securities Corp. ("Washington Mutual")
and State Street Bank and Trust Company, as trustee (the "Trustee"), of the
Washington Mutual Mortgage Securities Corp. WaMu Mortgage Pass-Through
Certificates, Series 2001-S8.
Section 2. Representations and Warranties of the Purchaser. In
connection with the proposed transfer, the Purchaser represents and warrants to
Washington Mutual and the Trustee that:
(a) The Purchaser is duly organized, validly existing and in good
standing under the laws of the jurisdiction in which the Purchaser is organized,
is authorized to invest in the Purchased Certificates, and to enter into this
Agreement, and duly executed and delivered this Agreement;
(b) The Purchaser is acquiring the Purchased Certificates for its own
account as principal and not with a view to the distribution thereof, in whole
or in part;
(c) The Purchaser is an "accredited investor" as such term is defined
in paragraph (a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) of Section 501 of
Regulation D under the Securities Act of 1933, as amended (the "Act"), has
knowledge of financial and business matters and is capable of evaluating the
merits and risks of an investment in the Purchased Certificates; the Purchaser
has sought such accounting, legal and tax advice as it has considered necessary
to make an informed investment decision; and the Purchaser is able to bear the
economic risk of an investment in the Purchased Certificates and can afford a
complete loss of such investment;
(d) The Purchaser is not affiliated with the Trustee;
G-1
(e) The Purchaser confirms that Washington Mutual has made available to
the Purchaser the opportunity to ask questions of, and receive answers from
Washington Mutual concerning the trust funds created pursuant to the Pooling
Agreement (the "Trust Funds"), the purchase by the Purchaser of the Purchased
Certificates and all matters relating thereto that Washington Mutual possesses
or can acquire without unreasonable effort or expense; and
(f) If applicable, the Purchaser has complied, and will continue to
comply, with the guidelines established by Thrift Bulletin 13a issued April 23,
1998, by the Office of Regulatory Activities of the Federal Home Loan Bank
System.
Section 3.Transfer of Purchased Certificates.
(a) The Purchaser understands that the Purchased Certificates have not
been registered under the Act, or any state securities laws and that no transfer
may be made unless the Purchased Certificates are registered under the Act and
under applicable state law or unless an exemption from registration is
available. The Purchaser further understands that neither Washington Mutual nor
the Trust Funds are under any obligation to register the Purchased Certificates
or make an exemption available. In the event that such a transfer is to be made
within two years from the Closing Date without registration under the Act or
applicable state securities laws, (i) the Trustee shall require, in order to
assure compliance with such laws, that the Certificateholder's prospective
transferee each certify to Washington Mutual and the Trustee as to the factual
basis for the registration or qualification exemption relied upon, and (ii) the
Trustee or Washington Mutual may require an Opinion of Counsel that such
transfer may be made pursuant to an exemption from the Act and state securities
laws, which Opinion of Counsel shall not be an expense of the Trustee or
Washington Mutual. Any such Certificateholder desiring to effect such transfer
shall, and does hereby agree to, indemnify the Trustee and Washington Mutual
against any liability that may result if the transfer is not so exempt or is not
made in accordance with such federal and state laws.
(b) No transfer of a Purchased Certificate shall be made unless the
transferee provides Washington Mutual and the Trustee with (i) a Transferee's
Agreement, substantially in the form of this Agreement, (ii) an affidavit
substantially in the form of Exhibit N to the Pooling Agreement and (iii) if so
indicated in such affidavit, a Benefit Plan Opinion (as defined in Section 1.01
of the Pooling Agreement).
(c) The Purchaser acknowledges that its Purchased Certificates bear a
legend setting forth the applicable restrictions on transfer.
G-2
IN WITNESS WHEREOF, the undersigned has caused this Agreement to be
validly executed by its duly authorized representative as of the day and the
year first above written.
[Purchaser]
By:
-----------------------------
Its:
G-3
Exhibit H
FORM OF ADDITIONAL MATTER INCORPORATED INTO
THE FORM OF THE CERTIFICATES (OTHER THAN THE CLASS R-1 CERTIFICATES)
This Certificate does not represent an obligation of or interest in
Washington Mutual Mortgage Securities Corp. or any of its affiliates. Neither
this Certificate nor the underlying Mortgage Loans are guaranteed by any agency
or instrumentality of the United States.
This certifies that the above-named Registered Owner is the registered
owner of certain interests in a trust fund (the "REMIC II Trust Fund") whose
assets consist of interests in a trust fund (the "REMIC I Trust Fund") whose
assets consist of, among other things, a pool (the "Mortgage Pool") of
conventional one- to four-family mortgage loans (the "Mortgage Loans"), formed
and administered by Washington Mutual Mortgage Securities Corp. (the "Company"),
which term includes any successor entity under the Pooling Agreement referred to
below. The Mortgage Pool was created pursuant to a Pooling and Servicing
Agreement, dated as of the Cut-Off Date stated above (the "Pooling Agreement"),
between the Company and State Street Bank and Trust Company, as Trustee (the
"Trustee"), a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Pooling Agreement. Nothing herein shall
be deemed inconsistent with such meanings, and in the event of any conflict
between the Pooling Agreement and the terms of this Certificate, the Pooling
Agreement shall control. This Certificate is issued under and is subject to the
terms, provisions and conditions of the Pooling Agreement, to which Pooling
Agreement the Holder of this Certificate, by virtue of the acceptance hereof,
assents and by which such Holder is bound.
Distributions will be made, pursuant to the Pooling Agreement, on the
25th day of each month or, if such 25th day is not a Business Day, the Business
Day immediately following (the "Distribution Date"), commencing on the first
Distribution Date specified above, to the Person in whose name this Certificate
is registered at the close of business on the last day (or if such last day is
not a Business Day, the Business Day immediately preceding such last day) of the
month immediately preceding the month of such distribution (the "Record Date"),
to the extent of such Certificateholder's Percentage Interest represented by
this Certificate in the portion of the REMIC II Available Distribution Amount
for such Distribution Date then distributable on the Certificates of this Class,
as specified in Section 4.04 of the Pooling Agreement.
Distributions on this Certificate will be made by the Trustee by wire
transfer or check mailed to the address of the Person entitled thereto, as such
name and address shall appear on the Certificate Register. Notwithstanding the
above, the final distribution on this Certificate will be made after due notice
by the Trustee of the pendency of such distribution and only upon presentation
and surrender of this Certificate to the Certificate Registrar.
Reference is hereby made to the further provisions of this Certificate
set forth below, which further provisions shall for all purposes have the same
effect as if set forth at this place.
Unless the certificate of authentication hereon has been executed by or
on behalf of the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Pooling Agreement or be valid for any purpose.
H-1
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.
STATE STREET BANK AND TRUST COMPANY,
as Trustee
By:
---------------------------------
(TRUSTEE'S CERTIFICATE OF AUTHENTICATION)
This is one of the Certificates referred to in the within-mentioned
Pooling Agreement.
STATE STREET BANK AND TRUST COMPANY,
as Trustee
By:
----------------------------------
Dated:
-------------------------------
H-2
WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
WaMu MORTGAGE PASS-THROUGH CERTIFICATE
This Certificate is one of a duly authorized issue of Certificates
designated as WaMu Mortgage Pass-Through Certificates of the Series and Class
specified hereon (herein called the "Certificates") and representing certain
interests in the REMIC II Trust Fund.
The Certificates do not represent an obligation of, or an interest in,
the Company or any of its affiliates and are not insured or guaranteed by any
governmental agency. The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Pooling Agreement. In the event funds
are advanced with respect to any Mortgage Loan, such advance is reimbursable to
the Master Servicer from the related recoveries on such Mortgage Loan or from
other cash deposited in the Certificate Account to the extent that such advance
is not otherwise recoverable.
As provided in the Pooling Agreement, withdrawals from the Certificate
Account may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement to the Master Servicer
of advances made, or certain expenses incurred, by it.
The Pooling Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Company and the rights of the Certificateholders under the
Pooling Agreement at any time by the Company, the Master Servicer and the
Trustee with the consent of the Holders of the Certificates evidencing
Percentage Interests aggregating not less than 66% of the REMIC II Trust Fund.
Any such consent by the Holder of this Certificate shall be conclusive and
binding on such Holder and upon all future Holders of this Certificate and of
any Certificate issued upon the transfer hereof or in exchange herefor or in
lieu hereof whether or not notation of such consent is made upon this
Certificate. The Pooling Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.
As provided in the Pooling Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices of the Certificate Registrar or the office maintained by
the Trustee in the City and State of New York, duly endorsed by, or accompanied
by an assignment in the form below or other written instrument of transfer in
form satisfactory to the Trustee or any Authenticating Agent duly executed by,
the Holder hereof or such Holder's attorney duly authorized in writing, and
thereupon one or more new Certificates of Authorized Denominations evidencing
the same Percentage Interest set forth hereinabove will be issued to the
designated transferee or transferees.
[to be used only in the case of the Junior Subordinate Certificates:]
[No transfer of a Certificate will be made unless such transfer is exempt from
or is made in accordance with the registration requirements of the Securities
Act of 1933, as amended (the "Securities Act") and any applicable state
securities laws. In the event that a transfer is to be made without registration
or qualification under applicable laws, (i) in the event such transfer is made
pursuant to Rule 144A under the Securities Act, the Company and the Trustee
shall require the transferee to execute an investment letter in substantially
the form attached as Exhibit L to the Pooling Agreement, which investment letter
shall not be an expense of the Company, the Master Servicer or the Trustee and
(ii) in the event that such a transfer is not made pursuant to Rule 144A under
the Securities Act, the Company may require an Opinion of Counsel satisfactory
to the Company that such transfer may be made without such registration or
qualification, which Opinion of Counsel shall not be an expense of the Company,
the Master Servicer or the Trustee. Neither the Company nor the Trustee will
register the Certificate under the Securities Act, qualify the Certificate under
any state securities law or provide registration rights to any purchaser. Any
Holder
H-3
desiring to effect such transfer shall, and does hereby agree to, indemnify the
Trustee, the Company and the Master Servicer against any liability that may
result if the transfer is not so exempt or is not made in accordance with such
federal and state laws.]
The Certificates are issuable only as registered Certificates without
coupons in Authorized Denominations specified in the Pooling Agreement. As
provided in the Pooling Agreement and subject to certain limitations therein set
forth, Certificates are exchangeable for new Certificates of Authorized
Denominations evidencing the same aggregate interest in the portion of the REMIC
II Available Distribution Amount distributable on this Class of Certificate, as
requested by the Holder surrendering the same.
A reasonable service charge may be made for any such registration of
transfer or exchange, and the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.
The Company, the Trustee and the Certificate Registrar and any agent of
the Company, the Trustee or the Certificate Registrar may treat the Person in
whose name this Certificate is registered as the owner hereof for all purposes,
and neither the Company, the Trustee, the Certificate Registrar nor any such
agent shall be affected by notice to the contrary.
The obligations created by the Pooling Agreement and the trust funds
created thereby shall terminate upon (i) the later of the maturity or other
liquidation (including purchase by the Master Servicer) of the last Mortgage
Loan remaining in the REMIC I Trust Fund or the disposition of all property
acquired upon foreclosure or deed in lieu of foreclosure of any Mortgage Loan,
and (ii) the payment to Certificateholders of all amounts held by the Trustee
and required to be paid to them pursuant to the Pooling Agreement. In the event
that the Company or the Master Servicer purchases any Mortgage Loan pursuant to
the Pooling Agreement, the Pooling Agreement generally requires that the Trustee
distribute to the Certificateholders in the aggregate an amount equal to 100% of
the unpaid Principal Balance of such Mortgage Loan, plus unpaid accrued interest
thereon at the applicable Pass-Through Rate to the last day of the month in
which such purchase occurs. The Pooling Agreement permits, but does not require,
the Master Servicer to purchase from the REMIC I Trust Fund all Mortgage Loans
at the time subject thereto and all property acquired in respect of any Mortgage
Loan upon payment to the Certificateholders of the amounts specified in the
Pooling Agreement. The exercise of such right will effect early retirement of
the Certificates, the Master Servicer's right to purchase being subject to the
aggregate Principal Balance of the Mortgage Loans at the time of purchase being
less than the Clean-Up Call Percentage of the aggregate Principal Balance of the
Mortgage Loans as of the Cut-Off Date.
H-4
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sell(s) and assign(s) and
transfer(s) unto ______________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name and address, including postal zip code of
assignee. Please insert social security or other identifying number of
assignee.)
the within WaMu Mortgage Pass-Through Certificate and hereby irrevocably
constitutes and appoints
--------------------------------------------------------------------------------
Attorney to transfer said Certificate on the Certificate Register, with full
power of substitution in the premises.
Dated:
------------------- ---------------------------------------------
Signature Guaranteed
NOTICE: The signature to this assignment must
correspond with the name as written
upon the face of the within
instrument in every particular,
without alteration or enlargement or
any change whatever. This Certificate
does not represent an obligation of
or an interest in Washington Mutual
Mortgage Securities Corp. or any of
its affiliates. Neither this
Certificate nor the underlying
Mortgage Loans are guaranteed by any
agency or instrumentality of the
United States.
H-5
Exhibit I
TRANSFEROR CERTIFICATE
[Date]
State Street Bank and Trust Company, as Trustee
000 Xxxxxxxx Xxxxxx
Xxxxxx, XX 00000
Attn: Corporate Trust Department, Washington Mutual 2001-S8
RE: WASHINGTON MUTUAL MORTGAGE SECURITIES CORP. WAMU MORTGAGE PASS-THROUGH
CERTIFICATES, SERIES 2001-S8, CLASS [R-1] [R-2]
Ladies and Gentlemen:
This letter is delivered to you in connection with the sale from (the
"Seller") to (the "Purchaser") of $____________________ initial Certificate
Principal Balance of WaMu Mortgage Pass-Through Certificates, Series 2001-S8,
Class [R-1][R-2] (the "Certificate"), pursuant to Section 5.01 of the Pooling
and Servicing Agreement (the "Pooling Agreement"), dated as of July 1, 2001
among Washington Mutual Mortgage Securities Corp., as depositor and master
servicer (the "Company") and State Street Bank and Trust Company, as trustee
(the "Trustee"). All terms used herein and not otherwise defined shall have the
meanings set forth in the Pooling Agreement. The Seller hereby certifies,
represents and warrants to, and covenants with, the Company and the Trustee
that:
1. No purpose of the Seller relating to the sale of the Certificate by
the Seller to the Purchaser is or will be to enable the Seller to impede the
assessment or collection of tax.
2. The Seller understands that the Purchaser has delivered to the
Trustee and the Company a transferee affidavit and agreement in the form
attached to the Pooling Agreement as Exhibit J. The Seller does not know or
believe that any representation contained therein is false.
3. The Seller has no actual knowledge that the proposed Transferee is
not a Permitted Transferee.
4. The Seller has no actual knowledge that the Purchaser would be
unwilling or unable to pay taxes due on its share of the taxable income
attributable to the Certificates.
5. The Seller has conducted a reasonable investigation of the financial
condition of the Purchaser and, as a result of the investigation, found that the
Purchaser has historically paid its debts as they came due, and found no
significant evidence to indicate that the Purchaser will not continue to pay its
debts as they come due in the future.
I-1
6. The Purchaser has represented to the Seller that, if the
Certificates constitute a noneconomic residual interest, it (i) understands that
as holder of a noneconomic residual interest it may incur tax liabilities in
excess of any cash flows generated by the interest, and (ii) intends to pay
taxes associated with its holding of the Certificates as they become due.
Very truly yours,
[Seller]
By:
--------------------------------------------
Name:
---------------------------------------
Title:
--------------------------------------
I-2
Exhibit J
TRANSFEREE AFFIDAVIT AND AGREEMENT
STATE OF )
) ss:
COUNTY OF )
[NAME OF OFFICER], being first duly sworn, deposes and says:
1. That he is [Title of Officer] of [Name of Owner] (record or
beneficial owner of the Class [R-1][R-2] Certificate (the "Owner")), a [savings
institution] [corporation] duly organized and existing under the laws of [the
State of ] [the United States], on behalf of which he makes this affidavit and
agreement.
2. That the Owner (i) is not and will not be a "disqualified
organization" as of [date of transfer] within the meaning of Section 860E(e)(5)
of the Internal Revenue Code of 1986, as amended (the "Code") and will endeavor
to remain other than a disqualified organization for so long as it retains its
ownership interest in the Class [R-1][R-2] Certificates, and (ii) is acquiring
the Class [R-1][R-2] Certificates for its own account or for the account of
another Owner from which it has received an affidavit and agreement in
substantially the same form as this affidavit and agreement. (For this purpose,
a disqualified organization" means the United States, any state or political
subdivision thereof, or any agency or instrumentality of any of the foregoing
(other than an instrumentality all of the activities of which are subject to tax
and, except for the Federal Home Loan Mortgage Corporation, a majority of whose
board of directors is not selected by any such governmental entity), or any
foreign government or international organization, or any agency or
instrumentality of such foreign government or organization, any rural electric
or telephone cooperative, or any organization (other than certain farmers'
cooperatives) that is generally exempt from federal income tax unless such
organization is subject to the tax on unrelated business taxable income).
3. That the Owner is aware (i) of the tax that would be imposed on
transfers of the Class [R-1][R-2] Certificates after March 31, 1988; (ii) that
such tax would be on the transferor, or, if such transfer is through an agent
(which person includes a broker, nominee or middle-man) for a disqualified
organization, on the agent; (iii) that the person otherwise liable for the tax
shall be relieved of liability for the tax if the transferee furnishes to such
person an affidavit that the transferee is not a disqualified organization and,
at the time of transfer, such person does not have actual knowledge that the
affidavit is false; and (iv) that the Class [R-1][R-2] Certificates may be a
"noneconomic residual interest" within the meaning of Treasury regulations
promulgated pursuant to the Code and that the transferor of a noneconomic
residual interest will remain liable for any taxes due with respect to the
income on such residual interest, if a significant purpose of the transfer was
to enable the transferor to impede the assessment or collection of tax.
4. That the Owner is aware of the tax imposed on a "pass-through
entity" holding the Class [R-1][R-2] Certificates if at any time during the
taxable year of the pass-through entity a disqualified organization is the
record holder of an interest in such entity. (For this purpose, a "pass
J-1
through entity" includes a regulated investment company, a real estate
investment trust or common trust fund, a partnership, trust or estate, and
certain cooperatives.)
5. That the Owner is aware that the Trustee will not register the
Transfer of the Class [R-1][R-2] Certificates unless the transferee, or the
transferees' agent, delivers to it an affidavit and agreement, among other
things, in substantially the same form as this affidavit and agreement. The
Owner expressly agrees that it will not consummate any such transfer if it knows
or believes that any of the representations contained in such affidavit and
agreement are false.
6. That the Owner has reviewed the restrictions set forth on the face
of the Class [R-1][R-2] Certificates and the provisions of Section 5.01 of the
Pooling Agreement under which the Class [R-1][R-2] Certificates were issued (in
particular, clauses (iii)(A) and (iii)(B) of Section 5.01(c) which authorize the
Trustee to deliver payments to a person other than the Owner and negotiate a
mandatory sale by the Trustee in the event the Owner holds such Certificates in
violation of Section 5.01). The Owner expressly agrees to be bound by and to
comply with such restrictions and provisions.
7. That the Owner consents to any additional restrictions or
arrangements that shall be deemed necessary upon advice of counsel to constitute
a reasonable arrangement to ensure that the Class [R-1][R-2] Certificates will
only be owned, directly or indirectly, by an Owner that is not a disqualified
organization.
8. The Owner's Taxpayer Identification Number is .
9. That no purpose of the Owner relating to the purchase of the Class
[R-1][R-2] Certificates by the Owner is or will be to enable the transferor to
impede the assessment or collection of tax.
10. That the Owner anticipates that it will, so long as it holds the
Class [R-1][R-2] Certificates, have sufficient assets to pay any taxes owed by
the holder of such Certificates, and hereby represents to and for the benefit of
the person from whom it acquired the Class [R-1][R-2] Certificates that the
Owner intends to pay taxes associated with holding such Certificates as they
become due, fully understanding that it may incur tax liabilities in excess of
any cash flows generated by the Class [R-1][R-2] Certificates. That the Owner
has provided financial statements or other financial information requested by
the transferor in connection with the transfer of the Class [R-1][R-2]
Certificates to permit the transferor to assess the financial capability of the
Owner to pay such taxes.
11. That the Owner has no present knowledge or expectation that it will
be unable to pay any United States taxes owed by it so long as any of the Class
[R-1][R-2] Certificates remain outstanding.
12. That the Owner has no present knowledge or expectation that it will
become insolvent or subject to a bankruptcy proceeding for so long as any of the
Class [R-1][R-2] Certificates remain outstanding.
13. That no purpose of the Owner relating to any sale of the Class
[R-1][R-2] Certificates by the Owner will be to impede the assessment or
collection of tax.
14. The Owner is a citizen or resident of the United States, a
corporation, partnership or other entity created or organized in, or under the
laws of, the United States or any political subdivision thereof, or an estate or
trust whose income from sources without the United States is includible in gross
J-2
income for United States federal income tax purposes regardless of its
connection with the conduct of a trade or business within the United States.
15. The Owner hereby agrees to cooperate with the Company and to take
any action required of it by the Code or Treasury regulations thereunder
(whether now or hereafter promulgated) in order to create or maintain the REMIC
status of the REMIC I Trust Fund and the REMIC II Trust Fund (the "Trust
Funds").
16. The Owner hereby agrees that it will not take any action that could
endanger the REMIC status of the Trust Funds or result in the imposition of tax
on the Trust Funds unless counsel for, or acceptable to, the Company has
provided an opinion that such action will not result in the loss of such REMIC
status or the imposition of such tax, as applicable.
17. The Owner as transferee of the Class [R-1][R-2] Certificates has
represented to their transferor that, if the Class [R-1][R-2] Certificates
constitute a noneconomic residual interest, the Owner (i) understands that as
holder of a noneconomic residual interest it may incur tax liabilities in excess
of any cash flows generated by the interest, and (ii) intends to pay taxes
associated with its holding of the Class [R-1][R-2] Certificates as they become
due.
18. That the Owner satisfies the condition in the paragraph marked
below [xxxx one paragraph only]:
___ The Owner is not an employee benefit or other plan subject to the
prohibited transaction provisions of the Employee Retirement Income
Security Act of 1974, as amended, or Section 4975 of the Internal Revenue
Code of 1986, as amended (a "Plan"), or any other person (including an
investment manager, a named fiduciary or a trustee of any Plan) acting,
directly or indirectly, on behalf of, or purchasing the Class [R-1][R-2]
Certificates with "plan assets" of, any Plan within the meaning of the
Department of Labor ("DOL") regulation at 29 C.F.R. Section 2510.3-101.
___ The Owner has delivered a Benefit Plan Opinion (as defined in Section
1.01 of the Pooling Agreement under which the Class [R-1][R-2] Certificates
were issued).
IN WITNESS WHEREOF, the Owner has caused this instrument to be executed
on its behalf, pursuant to the authority of its Board of Directors, by its
[Title of Officer] and its corporate seal to be hereunto attached, attested by
its [Assistant] Secretary, this _______ day of ___________, 20 __ .
[Name of Owner]
By:
----------------------------------
[Name of Officer]
[Title of Officer]
[Corporate Seal]
ATTEST:
J-3
[Assistant] Secretary
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 Owner, and Acknowledged to me that he
executed the same as his free act and deed and the free act and deed of the
Owner.
Subscribed and sworn before me this ___ day of __________________,
20__.
NOTARY PUBLIC
COUNTY OF
STATE OF
My Commission expires the ___ day
of_____________, 20___
J-4
Exhibit K
Form of Certificate Insurance Policy
K-1
Exhibit L
[FORM OF RULE 144A INVESTMENT REPRESENTATION]
Description of Rule 144A Securities, including numbers:
--------------------------
--------------------------
--------------------------
--------------------------
The undersigned seller, as registered holder (the "Seller"), intends to
transfer the Rule 144A Securities described above to the undersigned buyer (the
"Buyer").
1. In connection with such transfer and in accordance with the agreements
pursuant to which the Rule 144A Securities were issued, the Seller hereby
certifies the following facts: Neither the Seller nor anyone acting on its
behalf has offered, transferred, pledged, sold or otherwise disposed of the Rule
144A Securities, any interest in the Rule 144A Securities or any other similar
security to, or solicited any offer to buy or accept a transfer, pledge or other
disposition of the Rule 144A Securities, any interest in the Rule 144A
Securities or any other similar security from, or otherwise approached or
negotiated with respect to the Rule 144A Securities, any interest in the Rule
144A Securities or any other similar security with, any person in any manner, or
made any general solicitation by means of general advertising or in any other
manner, or taken any other action, that would constitute a distribution of the
Rule 144A Securities under the Securities Act of 1933, as amended (the "1933
Act"), or that would render the disposition of the Rule 144A Securities a
violation of Section 5 of the 1933 Act or require registration pursuant thereto,
and that the Seller has not offered the Rule 144A Securities to any person other
than the Buyer or another "qualified institutional buyer" as defined in Rule
144A under the 0000 Xxx.
2. The Buyer warrants and represents to, and covenants with, the Seller,
the Trustee and the Master Servicer (as defined in Section 1.01 of the Pooling
and Servicing Agreement (the "Agreement") dated as of July 1, 2001 between
Washington Mutual Mortgage Securities Corp., as Depositor and Master Servicer
and State Street Bank and Trust Company, as Trustee) pursuant to Section 5.01(f)
of the Agreement, as follows:
a. The Buyer understands that the Rule 144A Securities have not been
registered under the 1933 Act or the securities laws of any state.
b. The Buyer considers itself a substantial, sophisticated
institutional investor having such knowledge and experience in financial
and business matters that it is capable of evaluating the merits and risks
of investment in the Rule 144A Securities.
c. The Buyer has received and reviewed the Private Placement Memorandum
dated as of July 30, 2001 relating to the Rule 144A Securities and has been
furnished with all information regarding the Rule 144A Securities that it
has requested from the Seller, the Trustee, the Company or the Master
Servicer.
L-1
d. Neither the Buyer nor anyone acting on its behalf has offered,
transferred, pledged, sold or otherwise disposed of the Rule 144A
Securities, any interest in the Rule 144A Securities or any other similar
security to, or solicited any offer to buy or accept a transfer, pledge or
other disposition of the Rule 144A Securities, any interest in the Rule
144A Securities or any other similar security from, or otherwise approached
or negotiated with respect to the Rule 144A Securities, any interest in the
Rule 144A Securities or any other similar security with, any person in any
manner, or made any general solicitation by means of general advertising or
in any other manner, or taken any other action, that would constitute a
distribution of the Rule 144A Securities under the 1933 Act or that would
render the disposition of the Rule 144A Securities a violation of Section 5
of the 1933 Act or require registration pursuant thereto, nor will it act,
nor has it authorized or will it authorize any person to act, in such
manner with respect to the Rule 144A Securities.
e. The Buyer is a "qualified institutional buyer" as that term is
defined in Rule 144A under the 1933 Act and has (1) completed either of the
forms of certification to that effect attached hereto as Annex 1 or Annex
2, or (2) obtained the waiver of the Company with respect to Annex 1 and
Annex 2 pursuant to Section 5.01(f) of the Agreement. The Buyer is aware
that the sale to it is being made in reliance on Rule 144A. The Buyer is
acquiring the Rule 144A Securities for its own account or the accounts of
other qualified institutional buyers, understands that such Rule 144A
Securities may be resold, pledged or transferred only (i) to a person
reasonably believed to be a qualified institutional buyer that purchases
for its own account or for the account of a qualified institutional buyer
to whom notice is given that the resale, pledge or transfer is being made
in reliance on Rule 144A, or (ii) pursuant to another exemption from
registration under the 1933 Act.
f. The Buyer is not affiliated with (i) the Trustee or (ii) any Rating
Agency that rated the Rule 144A Securities.
g. If applicable, the Buyer has complied, and will continue to comply,
with the guidelines established by Thrift Bulletin 13a issued April 23,
1998, by the Office of Regulatory Activities of the Federal Home Loan Bank
System.
3. This document may be executed in one or more counterparts and by the
different parties hereto on separate counterparts, each of which, when so
executed, shall be deemed to be an original; such counterparts, together, shall
constitute one and the same document.
IN WITNESS WHEREOF, each of the parties has executed this document as of
the date set forth below.
----------------------------------- -----------------------------------
Print Name of Seller Print Name of Buyer
By: By:
---------------------------- ---------------------------------
Name: Name:
----------------------- ----------------------------
Title: Title:
---------------------- ---------------------------
L-2
Taxpayer Identification: Taxpayer Identification:
--------------- ---------------
No.: No.:
----------------------------------- -----------------------------------
Date: Date:
---------------------------------- ----------------------------------
L-3
Annex 1 to Exhibit L
QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
--------------------------------------------------------
[For Buyers Other Than Registered Investment Companies]
The undersigned hereby certifies as follows in connection with the Rule
144A Investment Representation to which this Certification is attached:
1. As indicated below, the undersigned is the President, Chief Financial
Officer, Senior Vice President or other executive officer of the Buyer.
2. In connection with purchases by the Buyer, the Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933 ("Rule 144A") because (i) the Buyer owned and/or invested on a
discretionary basis $______________________ (the Buyer must own and/or invest on
a discretionary basis at least $100,000,000 in securities unless the Buyer is a
dealer, and, in that case, the Buyer must own and/or invest on a discretionary
basis at least $10,000,000 in securities) in securities (except for the excluded
securities referred to below) as of the end of the Buyer's most recent fiscal
year (such amount being calculated in accordance with Rule 144A) and (ii) the
Buyer satisfies the criteria in the category marked below.
___ Corporation, etc. The Buyer is a corporation (other than a bank,
savings and loan association or similar institution), Massachusetts or
similar business trust, partnership, or charitable organization described
in Section 501(c)(3) of the Internal Revenue Code.
___ Bank. The Buyer (a) is a national bank or banking institution organized
under the laws of any State, territory or the District of Columbia, the
business of which is substantially confined to banking and is supervised by
the State or territorial banking commission or similar official or is a
foreign bank or equivalent institution, and (b) has an audited net worth of
at least $25,000,000 as demonstrated in its latest annual financial
statements, a copy of which is attached hereto.
___ Savings and Loan. The Buyer (a) is a savings and loan association,
building and loan association, cooperative bank, homestead association or
similar institution, which is supervised and examined by a State or Federal
authority having supervision over any such institutions or is a foreign
savings and loan association or equivalent institution and (b) has an
audited net worth of at least $25,000,000 as demonstrated in its latest
annual financial statements.
___ Broker-Dealer. The Buyer is a dealer registered pursuant to Section 15
of the Securities Exchange Act of 1934.
___ Insurance Company. The Buyer is an insurance company whose primary and
predominant business activity is the writing of insurance or the reinsuring
of risks underwritten by insurance companies and which is subject to
supervision by the insurance commissioner or a similar official or agency
of a State or territory or the District of Columbia.
___ State or Local Plan. The Buyer is a plan established and maintained by
a State, its political subdivisions, or any agency or instrumentality of
the State or its political subdivisions, for the benefit of its employees.
L-1-1
___ ERISA Plan. The Buyer is an employee benefit plan within the meaning of
Section 3(3) of the Employee Retirement Income Security Act of 1974, as
amended ("ERISA") and is subject to the fiduciary responsibility provisions
of ERISA.
___ Investment Adviser. The Buyer is an investment adviser registered under
the Investment Advisers Act of 1940.
___ SBIC. The Buyer is a Small Business Investment Company licensed by the
U.S. Small Business Administration under Section 301(c) or (d) of the Small
Business Investment Act of 1958.
___ Business Development Company. The Buyer is a business development
company as defined in Section 202(a)(22) of the Investment Advisers Act of
1940.
___ Trust Fund. The Buyer is a trust fund whose trustee is a bank or trust
company and whose participants are exclusively (a) plans established and
maintained by a State, its political subdivisions, or any agency or
instrumentality of the State or its political subdivisions, for the benefit
of its employees, or (b) employee benefit plans within the meaning of Title
I of the Employee Retirement Income Security Act of 1974, but is not a
trust fund that includes as participants individual retirement accounts or
H.R. 10 plans.
3. The term "securities" as used herein does not include (i) securities of
issuers that are affiliated with the Buyer, (ii) securities that are part of an
unsold allotment to or subscription by the Buyer, if the Buyer is a dealer,
(iii) bank deposit notes and certificates of deposit, (iv) loan participations,
(v) repurchase agreements, (vi) securities owned but subject to a repurchase
agreement and (vii) currency, interest rate and commodity swaps.
4. For purposes of determining the aggregate amount of securities owned
and/or invested on a discretionary basis by the Buyer, the Buyer used the cost
of such securities to the Buyer and did not include any of the securities
referred to in the preceding paragraph. Further, in determining such aggregate
amount, the Buyer may have included securities owned by subsidiaries of the
Buyer, but only if such subsidiaries are consolidated with the Buyer in its
financial statements prepared in accordance with generally accepted accounting
principles and if the investments of such subsidiaries are managed under the
Buyer's direction. However, such securities were not included if the Buyer is a
majority-owned, consolidated subsidiary of another enterprise and the Buyer is
not itself a reporting company under the Securities Exchange Act of 1934.
5. The Buyer acknowledges that it is familiar with Rule 144A and
understands that the seller to it and other parties related to the Certificates
are relying and will continue to rely on the statements made herein because one
or more sales to the Buyer may be in reliance on Rule 144A.
L-1-2
[ ] [ ] Will the Buyer be purchasing the Rule 144A
Yes No Securities only for the Buyer's own account?
6. If the answer to the foregoing question is "no", the Buyer agrees that,
in connection with any purchase of securities sold to the Buyer for the account
of a third party (including any separate account) in reliance on Rule 144A, the
Buyer will only purchase for the account of a third party that at the time is a
"qualified institutional buyer" within the meaning of Rule 144A. In addition,
the Buyer agrees that the Buyer will not purchase securities for a third party
unless the Buyer has obtained a current representation letter from such third
party or taken other appropriate steps contemplated by Rule 144A to conclude
that such third party independently meets the definition of "qualified
institutional buyer" set forth in Rule 144A.
7. The Buyer will notify each of the parties to which this certification is
made of any changes in the information and conclusions herein. Until such notice
is given, the Buyer's purchase of Rule 144A Securities will constitute a
reaffirmation of this certification as of the date of such purchase.
----------------------------------------
Print Name of Buyer
By:
-------------------------------------
Name:
--------------------------------
Title:
-------------------------------
Date:
-----------------------------------
L-1-3
ANNEX 2 TO EXHIBIT L
QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
[For Buyers That Are Registered Investment Companies]
The undersigned hereby certifies as follows in connection with the Rule
144A Investment Representation to which this Certification is attached:
1. As indicated below, the undersigned is the President, Chief Financial
Officer or Senior Vice President of the Buyer or, if the Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933 ("Rule 144A") because Buyer is part of a Family of Investment
Companies (as defined below), is such an officer of the Adviser.
2. In connection with purchases by Buyer, the Buyer is a "qualified
institutional buyer" as defined in SEC Rule 144A because (i) the Buyer is an
investment company registered under the Investment Company Act of 1940, and (ii)
as marked below, the Buyer alone, or the Buyer's Family of Investment Companies,
owned at least $100,000,000 in securities (other than the excluded securities
referred to below) as of the end of the Buyer's most recent fiscal year. For
purposes of determining the amount of securities owned by the Buyer or the
Buyer's Family of Investment Companies, the cost of such securities was used.
____ The Buyer owned $___________________ in securities (other than the
excluded securities referred to below) as of the end of the Buyer's most
recent fiscal year (such amount being calculated in accordance with Rule
144A).
____ The Buyer is part of a Family of Investment Companies which owned in
the aggregate $______________ in securities (other than the excluded
securities referred to below) as of the end of the Buyer's most recent
fiscal year (such amount being calculated in accordance with Rule 144A).
3. The term "Family of Investment Companies" as used herein means two or
more registered investment companies (or series thereof) that have the same
investment adviser or investment advisers that are affiliated (by virtue of
being majority owned subsidiaries of the same parent or because one investment
adviser is a majority owned subsidiary of the other).
4. The term "securities" as used herein does not include (i) securities of
issuers that are affiliated with the Buyer or are part of the Buyer's Family of
Investment Companies, (ii) bank deposit notes and certificates of deposit, (iii)
loan participations, (iv) repurchase agreements, (v) securities owned but
subject to a repurchase agreement and (vi) currency, interest rate and commodity
swaps.
5. The Buyer is familiar with Rule 144A and understands that each of the
parties to which this certification is made are relying and will continue to
rely on the statements made herein because one or more sales to the Buyer will
be in reliance on Rule 144A. In addition, the Buyer will only purchase for the
Buyer's own account.
6. The undersigned will notify each of the parties to which this
certification is made of any changes in the information and conclusions herein.
Until such notice, the Buyer's purchase of Rule 144A
L-2-1
Securities will constitute a reaffirmation of this certification by the
undersigned as of the date of such purchase.
--------------------------------------
Print Name of Buyer
By:
-----------------------------------
Name:
Title:
Date:
---------------------------------
IF AN ADVISER:
--------------------------------------
Print Name of Buyer
By:
-----------------------------------
Name:
Title:
Date:
---------------------------------
(SEAL)
L-2-2
Exhibit M
[Date]
[Company]
Re: Pooling and Servicing Agreement dated as of July 1, 2001 by and
between Washington Mutual Mortgage Securities Corp., as Depositor
and Master Servicer, and State Street Bank and Trust Company, as
Trustee, relating to Washington Mutual Mortgage Securities Corp.
WaMu Mortgage Pass-Through Certificates, Series 2001-S8
Ladies and Gentlemen:
In accordance with Section 2.02 of the above-captioned Pooling and
Servicing Agreement, the undersigned, as Trustee, hereby certifies that, except
as noted on the attachment hereto, as to each Mortgage Loan listed in the
Mortgage Loan Schedule (other than any Mortgage Loan paid in full or listed on
the attachment hereto) it or the Custodian on its behalf has reviewed the
documents delivered to it or to the Custodian on its behalf pursuant to Section
2.01 of the Pooling and Servicing Agreement and has determined that (i) all
documents required (in the case of instruments described in clauses (X)(v) and
(Y)(x) of the definition of "Mortgage File," known by the Trustee to be
required) pursuant to the definition of "Mortgage File" and Section 2.01 of the
Pooling and Servicing Agreement have been executed and received as of the date
hereof are in its possession or in the possession of the Custodian on its behalf
and (ii) all such documents have been executed and relate to the Mortgage Loans
identified in the Mortgage Loan Schedule. The Trustee has made no independent
examination of such documents beyond the review specifically required in the
above referenced Pooling and Servicing Agreement and has relied upon the
purported genuineness and due execution of any such documents and upon the
purported genuineness of any signature thereon. The Trustee makes no
representations as to: (i) the validity, legality, enforceability or genuineness
of any of the documents contained in each Mortgage File or any of the Mortgage
Loans identified on the Mortgage Loan Schedule, or (ii) the collectability,
insurability, effectiveness or suitability of any such Mortgage Loan.
Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the above-captioned Pooling and Servicing
Agreement.
-------------------------------------
as Trustee
By:
----------------------------------
Name:
Title:
M-1
EXHIBIT N
BENEFIT PLAN AFFIDAVIT
----------------------
State Street Bank and Trust Company, as Trustee (the "Trustee")
000 Xxxxxxxx Xxxxxx
Xxxxxx, XX 00000
Attn: Corporate Trust Department, Washington Mutual 2001-S8
Washington Mutual Mortgage Securities Corp. ("Washington Mutual")
00 Xxxxx Xxxxxxx Xxxxx
Xxxxxx Xxxxx, XX 00000
RE: WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
WaMu MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2001-S8
(THE "TRUST") CLASS [__-B-__] CERTIFICATES
(THE "PURCHASED CERTIFICATES")
Under penalties of perjury, I, _____________________, declare that, to the
best of my knowledge and belief, the following representations are true, correct
and complete; and
1. That I am the _______________ of __________________ (the "Purchaser"),
whose taxpayer identification number is ___________, and on behalf of which I
have the authority to make this affidavit.
2. That the Purchaser is acquiring a Purchased Certificate representing an
interest in the Trust Funds.
3. That the Purchaser satisfies the condition in the paragraph marked below
[xxxx one paragraph only]:
___ The Purchaser is not an employee benefit plan or other plan subject to
the prohibited transaction provisions of the Employee Retirement Income
Security Act of 1974, as amended, or Section 4975 of the Internal Revenue
Code of 1986, as amended (a "Plan"), or any other person (including an
investment manager, a named fiduciary or a trustee of any Plan) acting,
directly or indirectly, on behalf of, or purchasing any of the Purchased
Certificates with "plan assets" of, any Plan within the meaning of the
Department of Labor ("DOL") regulation at 29 C.F.R. Section 2510.3-101.
___ The Purchaser is an insurance company, the source of funds to be used
by it to acquire or hold the Purchased Certificate is an "insurance company
general account" (within the meaning of DOL Prohibited Transaction Class
Exemption ("PTCE") 95-60), and the conditions in Sections I and III of PTCE
95-60 have been satisfied.
___ The Purchaser has delivered to Washington Mutual and the Trustee a
Benefit Plan Opinion (as defined in Section 1.01 of the Pooling and
Servicing Agreement, dated as of July 1, 2001, by and between Washington
Mutual and the Trustee, and relating to Washington Mutual Mortgage
Securities Corp. WaMu Mortgage Pass-Through Certificates, Series 2001-S8).
IN WITNESS WHEREOF, the Purchaser has caused this instrument to be duly
executed on its behalf, by its duly authorized officer this _____ day of
__________________, 20__.
N-1
[Purchaser]
By:
----------------------------
Its:
N-2
Personally appeared before me ______________________, known or proved to me to
be the same person who executed the foregoing instrument and to be a
________________ of the Purchaser, and acknowledged to me that (s)he executed
the same as his/her free act and deed and as the free act and deed of the
Purchaser.
SUBSCRIBED and SWORN to before me this day of ____________, 20__.
-------------------------------------------
Notary Public
N-3
Exhibit O
BENEFIT PLAN AFFIDAVIT
----------------------
State Street Bank and Trust Company, as Trustee (the "Trustee")
000 Xxxxxxxx Xxxxxx
Xxxxxx, XX 00000
Attn: Corporate Trust Department, Washington Mutual 2001-S8
Washington Mutual Mortgage Securities Corp. ("Washington Mutual")
00 Xxxxx Xxxxxxx Xxxxx
Xxxxxx Xxxxx, XX 00000
RE: WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.
WaMu MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2001-S8
(THE "TRUST") CLASS [__-B-__] CERTIFICATES
(THE "PURCHASED CERTIFICATES")
Under penalties of perjury, I, _____________________, declare that, to the
best of my knowledge and belief, the following representations are true, correct
and complete; and
1. That I am the _______________ of __________________ (the "Purchaser"),
whose taxpayer identification number is ___________, and on behalf of which I
have the authority to make this affidavit.
2. That the Purchaser is acquiring a Purchased Certificate representing an
interest in the Trust.
3. That the Purchaser satisfies the condition in the paragraph marked below
[xxxx one paragraph only]:
___ The Purchaser is not an employee benefit or other plan subject to the
prohibited transaction provisions of the Employee Retirement Income
Security Act of 1974, as amended ("ERISA"), or Section 4975 of the Internal
Revenue Code of 1986, as amended (a "Plan"), or any other person (including
an investment manager, a named fiduciary or a trustee of any such Plan)
acting, directly or indirectly, on behalf of or purchasing the Purchased
Certificate with "plan assets" of, any Plan within the meaning of the
Department of Labor ("DOL") regulation at 29 C.F.R. Section 2510.3-101.
___ The Purchaser is an insurance company, the source of funds to be used
by it to acquire or hold the Purchased Certificate is an "insurance company
general account" (within the meaning of DOL Prohibited Transaction Class
Exemption ("PTCE") 95-60), and the conditions in Sections I and III of PTCE
95-60 have been satisfied.
___ The Purchased Certificate was rated "BBB-" or better (or its
equivalent) by at least one of the Rating Agencies (as defined in Section
1.01 of the Pooling and Servicing Agreement (the "the Pooling and Servicing
Agreement"), dated as of July 1, 2001, by and between Washington Mutual and
the Trustee, and relating to Washington Mutual Mortgage Securities Corp.
WaMu Mortgage Pass-Through Certificates, Series 2001-S8) at the time of
Purchaser's acquisition of the Purchased Certificate (or interest therein).
O-1
___ The Purchaser has delivered to Washington Mutual and the Trustee a
Benefit Plan Opinion (as defined in Section 1.01 of the Pooling and
Servicing Agreement).
IN WITNESS WHEREOF, the Purchaser has caused this instrument to be duly
executed on its behalf, by its duly authorized officer this _____ day of
__________________, 20__.
[Purchaser]
By:
---------------------------
Its:
O-2
Personally appeared before me ______________________, known or proved to me to
be the same person who executed the foregoing instrument and to be a
________________ of the Purchaser, and acknowledged to me that (s)he executed
the same as his/her free act and deed and as the free act and deed of the
Purchaser.
SUBSCRIBED and SWORN to before me this day of ____________, 20__.
----------------------------------
Notary Public
O-3
