RECEIVED WITH RESPECT TO OR RELATED
TO ANY REO PROPERTY AND ALL REO DISPOSITION PROCEEDS PURSUANT TO SECTION 4.14;
AND
(VIII)
ANY AMOUNTS REQUIRED TO BE DEPOSITED BY THE TRS
SERVICER PURSUANT TO SECTION 4.08 IN CONNECTION WITH THE INVESTMENT IN ELIGIBLE
ACCOUNTS.
(C)
THE FOREGOING REQUIREMENTS FOR DEPOSIT INTO
THE BLOCKED ACCOUNT SHALL BE EXCLUSIVE, IT BEING UNDERSTOOD AND AGREED THAT,
WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, AMOUNTS REPRESENTING THE
SERVICING FEE COLLECTED FROM THE INTEREST PORTION OF THE MONTHLY PAYMENT ON THE
RELATED MORTGAGE LOAN AND ANCILLARY INCOME NEED NOT BE DEPOSITED BY THE TRS
SERVICER INTO THE BLOCKED ACCOUNT, SUBJECT TO THE FOLLOWING: IF THE TRS SERVICER
RECEIVES NOTICE FROM UBS THAT A FACILITY DEFAULT HAS OCCURRED AND IS CONTINUING,
UNTIL IT RECEIVES FURTHER NOTICE FROM UBS THAT THERE IS NO LONGER ANY CONTINUING
FACILITY DEFAULT, THE PRECEDING EXCEPTION SHALL
11
NOT APPLY AND ANCILLARY INCOME SHALL BE DEPOSITED BY THE TRS SERVICER INTO THE
BLOCKED ACCOUNT.
(D)
NOTWITHSTANDING ANYTHING TO THE CONTRARY IN
THIS AGREEMENT, THE TRS SERVICER SHALL NOT BE OBLIGATED TO ADVANCE FROM ITS OWN
FUNDS (I) ANY DUE OR DELINQUENT, BUT UNCOLLECTED, PRINCIPAL AND INTEREST RELATED
TO A MORTGAGE LOAN OR (II) COMPENSATING INTEREST (PREPAYMENT INTEREST
SHORTFALLS) FOR ANY MORTGAGE LOAN.
Section 4.05
Permitted Withdrawals from Blocked
Account.
(A)
THE TRS SERVICER SHALL BE PERMITTED TO
REQUEST UBS TO MAKE THE FOLLOWING WITHDRAWALS FROM THE BLOCKED ACCOUNT, IT BEING
UNDERSTOOD THAT ONLY UBS SHALL, BY WRITTEN INSTRUCTION, BE PERMITTED TO DIRECT
THE BANK HOLDING THE BLOCKED ACCOUNT TO REMIT FUNDS THEREFROM:
(I)
TO REIMBURSE ITSELF FOR ANY SERVICING
ADVANCES, BUT ONLY FROM AMOUNTS RECEIVED ON ACCOUNT OF THE CORRESPONDING
MORTGAGE LOAN;
(II)
TO PAY TO ITSELF FOR ANY INCOME OR GAIN
REALIZED FROM THE INVESTMENT OF FUNDS IN THE BLOCKED ACCOUNT IN ELIGIBLE
ACCOUNTS PURSUANT TO SECTION 4.08;
(III)
TO REIMBURSE ITSELF FOR EXPENSES INCURRED
AND REIMBURSABLE TO IT PURSUANT TO SECTION 7.01;
(IV)
TO PAY ANY AMOUNT REQUIRED TO BE PAID PURSUANT
TO SECTION 4.14 RELATED TO ANY REO PROPERTY, IT BEING UNDERSTOOD THAT IN THE
CASE OF ANY SUCH EXPENDITURE OR WITHDRAWAL RELATED TO A PARTICULAR REO PROPERTY,
THE AMOUNT OF SUCH EXPENDITURE OR WITHDRAWAL FROM THE BLOCKED ACCOUNT SHALL BE
LIMITED TO AMOUNTS ON DEPOSIT IN THE BLOCKED ACCOUNT WITH RESPECT TO THE RELATED
REO PROPERTY;
(V)
ON EACH PAYMENT DATE, TO PAY TO UBS, TO THE
EXTENT OF AVAILABLE FUNDS ON DEPOSIT IN THE BLOCKED ACCOUNT, AN AMOUNT EQUAL TO
ALL INTEREST DUE TO UBS, TOGETHER WITH ALL PRINCIPAL COLLECTIONS AND OTHER
RECOVERIES OF PRINCIPAL RECEIVED BY THE TRS SERVICER (INCLUDING ANY REPURCHASE
PRICES NOT RECOVERED DIRECTLY BY UBS) DURING THE PRECEDING MONTH ON THE MORTGAGE
LOANS, IN EACH CASE TO THE EXTENT NOT PREVIOUSLY REMITTED TO UBS BY THE TRS
SERVICER OR THE TRS SUB-TRUST (IT BEING ACKNOWLEDGED BY THE PARTIES THAT AMOUNTS
REPRESENTING THE PRINCIPAL PREPAYMENTS ARE EXPECTED TO BE REMITTED TO UBS
IMMEDIATELY UPON RECEIPT AND IN NO EVENT LATER THAN THE BUSINESS DAY