EXHIBIT 4.2 


 


SEQUOIA MORTGAGE TRUST 20[ ]-[ ]


MORTGAGE PASS-THROUGH CERTIFICATES


 


FORM OF MORTGAGE LOAN PURCHASE AND SALE AGREEMENT


 


Between


 


REDWOOD RESIDENTIAL ACQUISITION CORPORATION,


 


and


 


SEQUOIA RESIDENTIAL FUNDING, INC.


 


dated as of [      ]


 




     


     


    

 


MORTGAGE LOAN PURCHASE AND SALE AGREEMENT


 


This Mortgage Loan Purchase
and Sale Agreement (the “Agreement”) is made as of [      ], by and between Redwood
Residential Acquisition Corporation, a Delaware corporation (“RRAC”), and Sequoia Residential Funding, Inc.,
a Delaware corporation (“Sequoia”).


 


WHEREAS, the parties hereto
desire to provide for the purchase and sale of the Mortgage Loans on the date hereof (the “Closing Date”) in
accordance with the terms and conditions set forth in this Agreement.


 


NOW, THEREFORE, the parties
in consideration of good and valuable and fair consideration, the receipt and sufficiency of which is hereby acknowledged, and
intending to be legally bound, hereby agree as follows:


 


Section 1.   Representations
and Warranties of RRAC and Sequoia.  RRAC and Sequoia, each as to itself and not the other, hereby represents, warrants
and agrees for the benefit of the other party that:


 


(a)           Authorization.  The
execution, delivery and performance of this Agreement by it are within its respective powers and have been duly authorized by all
necessary action on its part.


 


(b)           No
Conflict.  The execution, delivery and performance of this Agreement will not violate or conflict with (i) its charter
or bylaws, (ii) any resolution or other corporate action by it, or (iii) any decisions, statutes, ordinances, rulings, directions,
rules, regulations, orders, writs, decrees, injunctions, permits, certificates or other requirements of any court or other governmental
or public authority in any way applicable to or binding upon it, and will not result in or require the creation, except as provided
in or contemplated by this Agreement, of any lien, mortgage, pledge, security interest, charge or encumbrance of any kind upon
the Mortgage Loans.


 


(c)           Binding
Obligation.  This Agreement has been duly executed by it and is its legally valid and binding obligation, enforceable
against it in accordance with this Agreement’s terms, except as enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting creditors’ rights generally, and by general principles of equity.


 


Section 2.   Additional
Representations, Warranties and Agreements of RRAC.


 


(a)           Title
and Mortgage Loan Schedule. RRAC represents and warrants to, and agrees with, Sequoia that (i) on the Closing Date, RRAC will
have good, valid and marketable title to the mortgage loans identified on Schedule A hereto (the “Mortgage Loans”),
in each case free and clear of all liens, mortgages, deeds of trust, pledges, security interests, charges, encumbrances or other
claims; (ii) upon transfer to Sequoia, Sequoia will receive good, valid and marketable title to all of the Mortgage Loans, in each
case free and clear of any liens, mortgages, deeds of trust, pledges, security interests, charges, encumbrances or other claims;
and (iii) as of the date on which RRAC purchased such Mortgage Loan from [List Originators] (each, an “Originator”),
the information set forth in the Mortgage Loan Schedule in the fields identified as “Document Type,” “Monthly
Income” and “Assets Verified” is complete, true and correct in all material respects.


 




     


     


    

 


(b)           Additional
Representations. RRAC represents and warrants to, and agrees with, Sequoia that, as of the Closing Date:


 


(i)            As
to each Mortgage Loan, the lien of the Mortgage is free and clear of all adverse claims, liens and encumbrances having priority
over the first lien of the Mortgage subject only to (1) the lien of non-delinquent current real property taxes and assessments
not yet due and payable, (2) covenants, conditions and restrictions, rights of way, easements and other matters of the public record
as of the date of recording which are acceptable to mortgage lending institutions generally and which do not adversely affect the
appraised value of the Mortgaged Property as set forth in such appraisal and (3) 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 or the use,
enjoyment, value or marketability of the related Mortgaged Property.


 


(ii)           To
the actual knowledge of RRAC, each Mortgage Loan constitutes a “qualified mortgage” under Section 860G(a)(3)(A) of
the Code and Treasury Regulation Section 1.860-2(a)(1).


 


(iii)          As
of the Closing Date, the most recent FICO score listed on the Mortgage Loan Schedule was no more than four months old.


 


(iv)          As
to each Mortgage Loan transferred to RRAC pursuant to [       ], no Mortgage Loan is subject
to a lost note affidavit.


 


(v)           As
to each Mortgage Loan, with respect to any hazard or mortgage insurance covering such a Mortgage Loan and the related Mortgaged
Property, the Originator has not engaged in, and RRAC has no knowledge of the Mortgagor’s having engaged in any act or omission
that would impair the coverage of any such policy, the benefits of the endorsement, or the validity and binding effect of either,
including without limitation, no unlawful fee, commission, kickback, or other unlawful compensation or value of any kind as has
been or will be received, retained or realized by any attorney, firm or other person or entity, and no such unlawful items have
been received, retained or realized by the Originator.


 


(vi)          As
to each Mortgage Loan subject to the Flow Mortgage Loan Sale and Servicing Agreement dated as of [ ], between RRAC and [Originator
Name], as amended by the Assignment, Assumption and Recognition Agreement dated [      ] among RRAC,
Sequoia, the Trustee and [Originator Name] (the “[Originator Name] Agreement”), no fraud or material error,
omission, misrepresentation, negligence or similar occurrence with respect to a Mortgage Loan has taken place on the part of the
Originator, any correspondent or mortgage broker involved in the origination of such Mortgage Loan, the Mortgagor, or any appraiser
or other party involved in the origination of the Mortgage Loan or in the application of any insurance in relation to such Mortgage
Loan.


 




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(vii)         As
to each Mortgage Loan subject to the [Originator Name] Agreement, the servicing of such Mortgage Loan prior to the Closing Date
complied in all material respects with all then-applicable federal, state and local laws.


 


(viii)        As
to each Mortgage Loan that is secured by a long-term residential lease (a “Lease”):


 


(A)          The terms
of the Lease expressly permit the mortgaging of the leasehold estate, the assignment of the Lease without the lessor’s consent
(or the lessor’s consent has been obtained and is in the Mortgage File), and the acquisition by the holder of the Mortgage
of the rights of the lessee upon foreclosure or assignment in lieu of foreclosure or provide the holder of the Mortgage with substantially
similar protection.


 


(B)          The terms
of the Lease do not allow the termination thereof upon the lessee’s default without the holder of the Mortgage being entitled
to receive written notice, and opportunity to cure, such default or prohibit the holder of the Mortgage from being insured under
the hazard insurance policy related to the Mortgaged Property.


 


(C)          The original
term of the Lease is not less than 15 years and the Lease does not terminate by its terms prior to at least five years from the
maturity date of the Mortgage Loan.


 


(D)          The Mortgaged
Property is located in a jurisdiction in which the use of leasehold estates for residential properties is an accepted practice.


 


(ix)           As
to each Mortgage Loan subject to the Huntington Agreement, there is no homestead or other exemption available to the Mortgagor
which would interfere with the right to sell the Mortgaged Property at a trustee’s sale or the right to foreclose on the
Mortgage.


 




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(c)           Security
Interest Matters. RRAC hereby represents and warrants for the benefit of Sequoia and the Trustee (as defined in the Pooling
and Servicing Agreement, dated as of [date] (as in effect on the date of execution hereof, the “Pooling and Servicing
Agreement”) among Sequoia, as depositor, [Master Servicer Name], as master servicer, [Securities Administrator Name],
as securities administrator, and [Trustee Name], as trustee) (as assignee of Sequoia):  (i) Section 5 of this Agreement
creates a valid and continuing security interest (as defined in the applicable UCC) in the Mortgage Loans in favor of Sequoia,
which security interest is prior to all other Liens, and is enforceable as such as against creditors of and purchasers from RRAC;
(ii) the Mortgage Notes constitute “instruments” within the meaning of the applicable UCC; (iii) RRAC, immediately
prior to its transfer of Mortgage Loans under this Agreement, will own and have good, valid and marketable title to the Mortgage
Loans free and clear of any Lien, claim or encumbrance of any Person; (iv) RRAC has received all consents and approvals required
by the terms of the Mortgage Loans to the sale of the Mortgage Loans hereunder to Sequoia; (v) all original executed copies of
each Mortgage Note that constitute or evidence the Mortgage Loans have been delivered to the Custodian (as assignee of Sequoia);
(vi) RRAC has received a written acknowledgment from the Custodian that such Custodian is holding the Mortgage Notes that constitute
or evidence the Mortgage Loans solely on behalf and for the benefit of Sequoia or its assignee; (vii) other than the ownership
or security interest granted to Sequoia pursuant to this Agreement and security interests granted to lenders which will be automatically
released on the Closing Date, RRAC has not pledged, assigned, sold, granted a security interest in, or otherwise conveyed any of
the Mortgage Loans; RRAC has not authorized the filing of and is not aware of any financing statements against it that include
a description of collateral covering the Mortgage Loans other than any financing statement relating to the ownership or security
interest granted to Sequoia hereunder or that will be automatically released upon the sale to Sequoia; (viii) RRAC is not aware
of any judgment or tax lien filing against itself; and (ix) none of the Mortgage Notes that constitute or evidence the Mortgage
Loans have any marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any Person other than
Sequoia.


 


(d)           Cure,
Repurchase or Substitution Obligation. In the event of a breach of any of the representations and warranties of RRAC specified
in this Section 2 that materially adversely affects the value of a Mortgage Loan or the interest therein of the Certificateholders
(as assignees of Sequoia), RRAC will cure the breach, or repurchase or substitute for such Mortgage Loan or make an indemnification
payment with respect thereto pursuant to Section 2.04 of the Pooling and Servicing Agreement and Section 3 below.


 


In the event of a breach
of any of the representations and warranties of an Originator under any of the Purchase Agreements specified on Schedule B hereto
that materially and adversely affects the value of a Mortgage Loan or the interest therein of the Certificateholders (as assignees
of Sequoia), if the applicable Originator is unable to cure, repurchase or substitute the related Mortgage Loan or make an indemnification
payment with respect thereto pursuant to the terms of the applicable Purchase Agreement because such Originator is the subject
of a Bankruptcy or insolvency proceeding or no longer in existence, then RRAC will cure the breach or repurchase or substitute
such Mortgage Loan, or make an indemnification payment with respect thereto, pursuant to Section 2.04 of the Pooling and Servicing
Agreement and Section 3 below.


 




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Section 3.   Arbitration
and Representations and Warranties of RRAC with respect to the Period of Time Since Each Originator Sold Mortgage Loans.


 


(a)           RRAC
hereby covenants and agrees that, if a breach of any representation and warranty set forth in Purchase Agreements with respect
to the characteristics of a Mortgage Loan exists on the date hereof that materially and adversely affects the value of any Mortgage
Loan or the interest of Sequoia in any Mortgage Loan and such breach did not exist as of the date that RRAC purchased such Mortgage
Loan, RRAC shall have a period of 60 days from the earlier of either discovery or receipt of written notice from Sequoia to RRAC
of such breach within which to correct or cure such breach. Each determination as to whether there has been such a breach shall
be conducted on a Mortgage Loan-by-Mortgage Loan basis. RRAC hereby covenants and agrees that if any breach cannot be corrected
or cured within such 60 day period, then, at RRAC’s option, RRAC shall (i) repurchase the related Mortgage Loan at the Repurchase
Price, (ii) substitute a mortgage loan for the defective Mortgage Loan in accordance with the applicable Purchase Agreement or
(iii) make an indemnification payment in an amount equal to the reduction in value of such Mortgage Loan as a result of such breach
not later than 90 days after its discovery or receipt of notice of such breach and in the case of (i) or (iii) above, by wire transfer
of immediately available funds to such account as Sequoia shall specify to RRAC.


 


(b)           RRAC
and Sequoia agree that if any controversy or claim arising out of or relating to an obligation or alleged obligation of RRAC to
repurchase a Mortgage Loan or Mortgage Loans pursuant to Section 2(d) or Section 3(a) is not resolved by the end of the 180 day
period commencing on the date that RRAC receives a repurchase request, such controversy or claim shall be resolved, at Sequoia’s
discretion, by either mediation or third-party arbitration, and RRAC shall agree to the selected resolution method. In addition,
if Sequoia or the Trustee as Sequoia’s assignee does not elect to refer the matter to mediation or third-party arbitration,
any Certificateholder may do so by notice to Sequoia within ninety (90) days of the filing date of the Report on Form 10-D reporting
that the dispute has not been resolved within such 180 day period.


 


(c)           To
commence third-party arbitration or mediation, Sequoia or a Certificateholder shall deliver written notice to RRAC of its election.
If the notice states that Sequoia or the Certificateholder elects arbitration, within ten (10) Business Days after the date of
receipt by RRAC of such notice, each party may submit the names of one or more proposed Arbitrators to the other party in writing.
If the parties have not agreed on the selection of an Arbitrator within five (5) Business Days after the first such submission,
then the party commencing arbitration shall, within the next five (5) Business Days, notify the American Arbitration Association
in New York, New York and request that it appoint a single Arbitrator with experience in arbitrating disputes arising in the financial
services industry.


 




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(d)           It
is the intention of the parties that any arbitration shall be conducted in as efficient and cost-effective a manner as is reasonably
practicable, without the burden of discovery. Accordingly, the Arbitrator will resolve the dispute on the basis of a review of
the written correspondence between the parties (including any supporting materials attached to such correspondence) conveyed by
the parties to each other in connection with the dispute prior to the delivery of notice to commence arbitration; however, upon
a showing of good cause, a party may request the Arbitrator to direct the production of such additional information, evidence and/or
documentation from the parties that the Arbitrator deems appropriate. If requested by the Arbitrator or any party, any hearing
with respect to an arbitration shall be conducted by video conference or teleconference, except upon the agreement of both parties
or the request of the Arbitrator.


 


(e)           If
any such dispute is referred to arbitration, the Arbitrator shall determine the allocation of any expenses, which may include allocation
of expenses to any Certificateholder that referred the dispute to arbitration. If the matter is referred to mediation, the parties
to the mediation shall mutually determine the allocation of any expenses.


 


(f)            The
following capitalized terms shall have the meaning specified below:


 


Arbitrator: A person
who is not affiliated with RRAC, Sequoia or any Originator, who is a member of the American Arbitration Association.


 


Repurchase Price:
With respect to any Mortgage Loan, a price equal to (i) the unpaid principal balance of such Mortgage Loan plus (ii) interest
on such unpaid principal balance at the mortgage interest rate from and including the last Due Date through which interest has
been paid by or on behalf of the Mortgagor up to the Due Date following the date of repurchase, minus (iii) amounts received in
respect of such repurchased Mortgage Loan which are being held in the Collection Account for distribution in connection with such
Mortgage Loan.


 


Section 4.    Conveyance
of Mortgage Loans.


 


(a)           Mortgage
Loans.  In return for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
RRAC, concurrently with the execution and delivery hereof, hereby sells, transfers, assigns, sets over and otherwise conveys to
Sequoia, without recourse, all of RRAC’s right, title and interest in and to the Mortgage Loans, including the related Mortgage
Documents and all principal and interest received by RRAC on or with respect to the Mortgage Loans after [date] (the “Cut-off
Date”) (other than Scheduled Payments due on or before such date), and all such payments due after such date but received
on or prior to such date and intended by the related Mortgagors to be applied after such date, all insurance policies with respect
to the Mortgage Loans, and all proceeds of the foregoing.


 


Sequoia shall pay the purchase
price for the Mortgage Loans by delivering to RRAC on the Closing Date cash in an amount mutually agreed upon by RRAC and Sequoia.


 




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On or prior to the Closing
Date, RRAC shall deliver or cause to be delivered to Sequoia or, at Sequoia’s direction, to the Custodian, the Trustee Mortgage
File for each Mortgage Loan in the manner set forth in Article 3 of the Custodial Agreement as in effect on the date of execution
hereof, by and among [Custodian Name], as custodian, RRAC, as seller, Sequoia, as depositor, and [Trustee Name], as trustee.  


 


(b)           Limited
Remedies. Sequoia acknowledges and agrees that it shall have no recourse to RRAC with respect to any Defective Mortgage Loan
except as provided in Section 2(d) and Section 3 and that Sequoia’s remedies with respect to any other Defective Mortgage
Loans shall be exercised with respect to the Originator of such Defective Mortgage Loan as set forth in the applicable Purchase
Agreement.


 


Section 5.    Intention
of Parties.  The conveyance of the Mortgage Loans and all other property hereunder by RRAC as contemplated hereby
is absolute and is intended by the parties to constitute a sale of the Mortgage Loans and such other property by RRAC to Sequoia.
It is, further, not intended that such conveyance be the grant of a security interest to secure a loan or other obligation. However,
in the event that, notwithstanding the intent of the parties, the Mortgage Loans and the other property described in Section 4(a)
are held to be the property of RRAC, or if for any other reason this Agreement is held or deemed to create a security interest
in the Mortgage Loans and such other property, then this Agreement shall constitute a security agreement, and the conveyance provided
for in Section 4(a) shall be deemed to be a grant by RRAC to Sequoia of, and RRAC hereby grants to Sequoia, to secure all of RRAC’s
obligations hereunder, a security interest in all of RRAC’s right, title and interest, whether now owned or hereafter acquired,
in and to (i) the Mortgage Loans, including the Mortgage Notes, the Mortgages, and the right to all payments of principal and interest
received on or with respect to the Mortgage Loans after the Cut-off Date (other than Scheduled Payments due on or before such date),
and all such payments due after such date but received on or prior to such date and intended by the related Mortgagors to be applied
after such date, (ii) all of RRAC’s right, title and interest, if any, in and to all amounts from time to time credited to
and the proceeds of any Custodial Accounts or any Escrow Account established with respect to the Mortgage Loans, (iii) with respect
to the Mortgage Loans, to the extent set forth in the applicable Purchase Agreement, the [Originator Name] Agreement or the Flow
Mortgage Loan Servicing Agreement, dated [date], between RRAC and [Servicer Name], as amended on [date] and as further amended
by the Assignment, Assumption and Recognition Agreement, dated [ ], by and among RRAC, Sequoia, the Trustee and [Servicer Name]
(the “[Servicer Name] Agreement”), RRAC’s rights and obligations under the applicable Purchase Agreement,
the [Originator Name] Agreement or the [Servicer] Agreement, (iv) all of RRAC’s
right, title and interest, if any, in REO Property and the proceeds thereof, (v) all of RRAC’s rights under any Insurance
Policies related to the Mortgage Loans, (vi) RRAC’s security interest in any collateral pledged to secure the Mortgage Loans,
including the Mortgaged Properties, and (vii) all proceeds of the conversion, voluntary or involuntary, of any of the foregoing
into cash or other liquid assets, including, without limitation, all Insurance Proceeds, Liquidation Proceeds and condemnation
awards.


 




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RRAC and Sequoia 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 Mortgage Loans, 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.  RRAC shall
arrange for filing any Uniform Commercial Code financing statements and continuation statements in connection with such security
interest.


 


Section 6.    Termination.


 


Notwithstanding any termination
of this Agreement or the completion of all sales contemplated hereby, the representations, warranties and agreements in Sections
1 and 2 hereof shall survive and remain in full force and effect.


 


Section 7.    Miscellaneous.


 


(a)           Amendments,
Etc.  No rescission, modification, amendment, supplement or change of this Agreement shall be valid or effective
unless in writing and signed by all of the parties to this Agreement.  No amendment of this Agreement may modify or waive
the representations, warranties and agreements set forth in Sections 1 and 2 hereof.


 


(b)           Binding
Upon Successors, Etc.  This Agreement shall bind and inure to the benefit of and be enforceable by RRAC and Sequoia,
and the respective successors and assigns thereof.  The parties hereto acknowledge that Sequoia is acquiring the Mortgage
Loans for the purpose of selling, transferring, assigning, setting over and otherwise conveying them to the Trustee, pursuant to
the Pooling and Servicing Agreement.  RRAC acknowledges and consents to the assignment to the Trustee by Sequoia of all
of Sequoia's rights against RRAC hereunder in respect of the Mortgage Loans sold to Sequoia and that the enforcement or exercise
of any right or remedy against RRAC hereunder by the Trustee or to the extent permitted under Section 2.04 of the Pooling and Servicing
Agreement shall have the same force and effect as if enforced and exercised by Sequoia directly.


 


(c)           Counterparts.  This
Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall
constitute one and the same instrument.


 


(d)           Governing
Law.  This Agreement and all questions relating to its validity, interpretation, performance and enforcement shall
be governed by and construed, interpreted and enforced in accordance with the laws of the State of New York notwithstanding any
law, rule, regulation, or other conflict-of-law provisions to the contrary.


 




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(e)           Headings.  The
headings of the several parts of this Agreement are inserted for convenience of reference and are not intended to be a part of
or affect the meaning or interpretation of this Agreement.


 


(f)            Definitions.  Capitalized
terms not otherwise defined herein have the meanings ascribed to such terms (i) in the Pooling and Servicing Agreement as
in effect on the date of execution hereof or (ii) in Schedule B hereto.


 


(g)           Nonpetition
Covenant.  Until one year plus one day shall have elapsed since the termination of the Pooling and Servicing Agreement
in accordance with its terms, RRAC shall not petition or otherwise invoke the process of any court or government authority for
the purpose of commencing or sustaining a case against Sequoia under any federal or state bankruptcy, insolvency or similar law
or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of Sequoia or any substantial
part of its property, or ordering the winding up or liquidation of the affairs of Sequoia.


 


[remainder of page intentionally left blank]


 




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IN WITNESS WHEREOF, each
party has caused this Mortgage Loan Purchase and Sale Agreement to be executed by its duly authorized officer or officers as of
the day and year first above written.


 


	 	REDWOOD RESIDENTIAL ACQUISITION CORPORATION
	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 	 
	 	SEQUOIA RESIDENTIAL FUNDING, INC.
	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 


 


Signature Page – MLPSA (SEMT 20[ ]-[  ])




 




     


     


    

 


SCHEDULE A


MORTGAGE LOAN SCHEDULE 


 




     


     


    

 


SCHEDULE B


CERTAIN ORIGINATOR PURCHASE AGREEMENTS