ASSETS AND SHALL ESTABLISH AND MAINTAIN ONE OR MORE ESCROW ACCOUNTS, IN
THE FORM OF TIME DEPOSIT OR DEMAND ACCOUNTS, ESTABLISHED IN THE NAME OF
"MORTGAGEIT HOLDINGS, INC., AS SERVICER, IN TRUST FOR UBS REAL ESTATE SECURITIES
INC. AND ITS ASSIGNEES AND VARIOUS MORTGAGORS".
THE ESCROW ACCOUNT SHALL BE
ESTABLISHED WITH HSBC BANK, IN A MANNER THAT SHALL PROVIDE MAXIMUM AVAILABLE
INSURANCE THEREUNDER.
FUNDS DEPOSITED IN THE ESCROW ACCOUNT MAY BE DRAWN ON BY
THE REIT SERVICER IN ACCORDANCE WITH SECTION 4.06(C).
(B)
DEPOSITS TO ESCROW ACCOUNT.
THE REIT
SERVICER SHALL DEPOSIT IN THE ESCROW ACCOUNT WITHIN THREE (3) BUSINESS DAYS
AFTER RECEIPT OF FUNDS, AND RETAIN THEREIN:
(I)
ALL ESCROW PAYMENTS COLLECTED ON ACCOUNT
OF THE MORTGAGE LOANS, FOR THE PURPOSE OF EFFECTING PAYMENT OF ANY ITEM REQUIRED
UNDER THE TERMS OF THE RELATED ESCROW AGREEMENT WITH THE MORTGAGOR; AND
(II)
ALL AMOUNTS REPRESENTING INSURANCE
PROCEEDS OR CONDEMNATION PROCEEDS THAT ARE TO BE APPLIED TO THE RESTORATION OR
REPAIR OF ANY MORTGAGED PROPERTY; AND
(III)
ANY AMOUNTS REQUIRED TO BE DEPOSITED BY THE
REIT SERVICER PURSUANT TO SECTION 4.08 IN CONNECTION WITH THE INVESTMENT IN
ELIGIBLE ACCOUNTS.
(C)
WITHDRAWALS FROM ESCROW ACCOUNT.
WITHDRAWALS FROM THE ESCROW ACCOUNT MAY BE MADE BY THE REIT SERVICER ONLY:
(I)
TO EFFECT PAYMENTS OF ITEMS CONSTITUTING
ESCROW PAYMENTS FOR THE RELATED MORTGAGE PURSUANT TO THE TERMS OF THE MORTGAGE
OR ANY OTHER RELATED DOCUMENT;
(II)
TO REIMBURSE THE REIT SERVICER FOR ANY
SERVICING ADVANCES MADE BY THE REIT SERVICER PURSUANT TO SECTION 4.07 WITH
RESPECT TO A RELATED MORTGAGE LOAN, BUT ONLY FROM AMOUNTS RECEIVED ON THE
RELATED MORTGAGE LOAN WHICH REPRESENT LATE COLLECTIONS OF ESCROW PAYMENTS
THEREUNDER;
(III)
TO REFUND TO ANY MORTGAGOR ANY FUNDS FOUND
TO BE IN EXCESS OF THE AMOUNTS REQUIRED UNDER THE TERMS OF THE RELATED MORTGAGE
LOAN;
(IV)
FOR TRANSFER TO THE RELATED BLOCKED ACCOUNT
AND APPLICATION TO REDUCE THE PRINCIPAL BALANCE OF THE MORTGAGE LOAN IN
ACCORDANCE WITH THE TERMS OF THE RELATED MORTGAGE AND MORTGAGE NOTE;
(V)
FOR APPLICATION TO RESTORATION OR REPAIR OF
THE MORTGAGED PROPERTY IN ACCORDANCE WITH THE PROCEDURES OUTLINED IN
SECTION 4.13;
(VI)
TO PAY TO THE REIT SERVICER PURSUANT TO
SECTION 4.08, OR ANY MORTGAGOR TO THE EXTENT REQUIRED BY LAW, ANY INTEREST
EARNED ON THE FUNDS DEPOSITED IN THE ESCROW ACCOUNT;
(VII)
TO CLEAR AND TERMINATE THE ESCROW ACCOUNT ON THE
TERMINATION OF THIS AGREEMENT; AND
13
(VIII)
TO WITHDRAW FUNDS DEPOSITED IN ERROR.
SECTION 4.07
PAYMENT OF TAXES, INSURANCE AND
OTHER CHARGES.
With respect to each Mortgage Loan, the REIT Servicer shall maintain accurate
and customary servicing records reflecting the status of taxes, assessments,
fire and hazard insurance premiums and other charges which are or may become a
lien upon the Mortgaged Property.
As to those Mortgage Loans which are the
subject of an "impound account" for the payment of taxes and/or insurance, the
REIT Servicer shall obtain, from time to time, all bills for the payment of such
charges (including renewal premiums) subject to the Escrow