THE OWNER OF THE PROPERTY THAT
SECURES THE APPLICABLE BONDS, OR ANY OTHER PERSON (OTHER THAN FREDDIE MAC)
MAKING SUCH PAYMENT, FREDDIE MAC WILL PAY TO THE ADMINISTRATOR, WITHIN FIVE
(5) BUSINESS DAYS AFTER RECEIVING A WRITTEN NOTICE FROM THE AFFECTED REGISTERED
HOLDERS OF THE CERTIFICATES THAT WERE REQUIRED TO PAY SUCH RECOVERY, AN AMOUNT
EQUAL TO THE AMOUNT OF SUCH RECOVERY.
NOTHING CONTAINED IN THIS PARAGRAPH WILL
PRECLUDE FREDDIE MAC, AFTER MAKING THE PAYMENT REFERRED TO IN THE PRIOR
SENTENCE, FROM CONTESTING, DIRECTLY OR INDIRECTLY, IN ANY SUCH PROCEEDING, ANY
SUCH ATTEMPTED RECOVERY OR STAY, OR FROM SEEKING TO LIFT OR MODIFY THE AUTOMATIC
STAY, AND FREDDIE MAC IN ITS CAPACITY AS ADMINISTRATOR, WILL HAVE THE RIGHT TO
CONTEST ANY ATTEMPTED RECOVERY OR STAY, OR TO SEEK TO LIFT OR MODIFY ANY
AUTOMATIC STAY.
THE AMOUNTS PAYABLE PURSUANT TO THIS PARAGRAPH WILL BE
DEPOSITED INTO THE APPLICABLE BOND PAYMENT SUBACCOUNT WITHIN THE DISTRIBUTION
ACCOUNT.
(E)
EXCEPT AS PROVIDED IN THE NEXT SENTENCE, FREDDIE MAC'S OBLIGATIONS
UNDER THE CREDIT ENHANCEMENT WILL TERMINATE ON THE CREDIT ENHANCEMENT EXPIRATION
DATE.
UNDER CERTAIN CIRCUMSTANCES INVOLVING AN OWNER ACT OF BANKRUPTCY, FREDDIE
MAC'S OBLIGATIONS UNDER THE IMMEDIATELY PRECEDING PARAGRAPH WILL CONTINUE BEYOND
THE CREDIT ENHANCEMENT EXPIRATION DATE, AS FOLLOWS:
FREDDIE MAC'S OBLIGATIONS
UNDER THE IMMEDIATELY PRECEDING PARAGRAPH WILL CONTINUE BEYOND THE CREDIT
ENHANCEMENT EXPIRATION DATE WITH RESPECT TO ANY PAYMENT (A "COVERED PAYMENT") ON
ANY SERIES OF BONDS MADE BY ANY PERSON (OTHER THAN FREDDIE MAC) WITHIN THREE
HUNDRED SIXTY-SIX (366) DAYS PRIOR TO AN OWNER ACT OF BANKRUPTCY WITH RESPECT TO
SUCH BONDS, AND WILL TERMINATE ON THE LATER TO OCCUR OF (I) THE DATE ON WHICH
FREDDIE MAC HAS PAID TO THE ADMINISTRATOR AN AMOUNT EQUAL TO ALL COVERED
PAYMENTS RECOVERED FROM THE HOLDERS PURSUANT TO SUCH PROCEEDING, AND (II) THE
DATE ON WHICH ALL CLAIMS WITH RESPECT TO ANY SUCH PROCEEDING HAVE BEEN DENIED
WITH PREJUDICE BY A FINAL, NONAPPEALABLE ORDER OF A COURT OF COMPETENT
JURISDICTION, AND (B) IF NO OWNER ACT OF BANKRUPTCY HAS OCCURRED, THE LAST
EXPIRATION DATE OF ALL STATUTES OF LIMITATIONS APPLICABLE TO CLAIMS AGAINST
HOLDERS PURSUANT TO AN OWNER ACT OF BANKRUPTCY.
HOWEVER, ALL CREDIT ENHANCEMENT
OBLIGATIONS OF FREDDIE MAC WITH RESPECT TO ANY SERIES OF BONDS WILL TERMINATE ON
THE EARLIER OF (A) THE RECEIPT BY THE ADMINISTRATOR OF A CERTIFICATE OF THE
APPLICABLE OWNER DATED NOT EARLIER THAN 366 DAYS FOLLOWING THE APPLICABLE CREDIT
ENHANCEMENT EXPIRATION DATE TO THE EFFECT THAT AS OF THE DATE OF THE CERTIFICATE
NO OWNER ACT OF BANKRUPTCY HAS OCCURRED OR (B) 380 DAYS FOLLOWING SUCH CREDIT
ENHANCEMENT EXPIRATION DATE PROVIDED THAT THE ADMINISTRATOR HAS NOT RECEIVED
NOTICE THAT AN OWNER ACT OF BANKRUPTCY HAS OCCURRED.
19
(F)
FREDDIE MAC WILL BE SUBROGATED TO ALL THE RIGHTS, INTEREST,
REMEDIES, POWERS AND PRIVILEGES OF THE HOLDERS WITH RESPECT TO ANY PAYMENTS MADE
BY FREDDIE MAC PURSUANT TO ITS CREDIT ENHANCEMENT SET FORTH IN THIS
SECTION 4.11.
IN PARTICULAR, TO THE EXTENT FREDDIE MAC MAKES A PAYMENT PURSUANT
TO