THE SPONSOR TO FUND THE RELATED PURCHASE PRICE IF THE RELEASE EVENT (I) ARISES
FROM A TAX EVENT, (II) RELATES TO AN INACCURACY WHICH THE SPONSOR HAS ELECTED TO
CURE THROUGH ITS FUNDING OF A RELEASE EVENT PURSUANT TO SECTION 2.4, OR RELATES
TO A REPURCHASE INACURRACY (IN WHICH CASE THE RELEASE EVENT MUST BE FUNDED BY
THE SPONSOR WHEN REQUIRED BY FREDDIE MAC PURSUANT TO SECTION 2.4), OR
(III) RELATES TO AN ISSUE OF SPECIALLY SERVICED BONDS (IN ANY SUCH CASE, THE
SPONSOR'S REQUIRED NOTICE TO FREDDIE MAC SHALL DETAIL THE FACTS SUPPORTING THE
EXERCISE OF THE SPONSOR'S OPTION PURSUANT TO THIS SUBSECTION 7.3(A) HEREOF); AND
PROVIDED HOWEVER, IF AN ISSUE OF BONDS TO BE PURCHASED IS SECURED BY A COMMON
BOND MORTGAGE THAT ALSO SECURES ANOTHER ISSUE OF BONDS IN A SERIES POOL, SUCH
OPTION MAY ONLY BE EXERCISED IF ALL BONDS SECURED BY SUCH BOND MORTGAGE ARE
PURCHASED.
(B)
EXERCISE OF PURCHASE RIGHT BY FREDDIE MAC.
IN ADDITION TO RELEASE
EVENTS THAT MAY BE DESIGNATED BY FREDDIE MAC UNDER SECTION 5.3, UPON THE
OCCURRENCE OF A RELEASE EVENT UNDER ANY SERIES CERTIFICATE AGREEMENT WHICH
RELEASE EVENT (I) RELATES TO A TAX EVENT, (II) RELATES TO THE FAILURE OF A
NON-STABILIZED MORTGAGED PROPERTY TO ACHIEVE STABILIZATION BY THE REQUIRED
STABILIZATION DATE, (III) OCCURS AFTER THE SPECIAL SERVICING CROSSOVER DATE OR
(IV) OCCURS AFTER AND DURING THE CONTINUANCE OF A REMEDY EVENT HEREUNDER,
FREDDIE MAC SHALL HAVE THE RIGHT TO DESIGNATE THE RELEASE EVENT AND TO FUND THE
PURCHASE OF THE RELATED SERIES OF BONDS IF THE SPONSOR DECLINES OR FAILS TO
EXERCISE PROPERLY ITS RIGHT TO FUND OR CAUSE FUNDING WITH RESPECT TO THE SAME.
PRIOR TO ANY EXERCISE OF SUCH RIGHT, FREDDIE MAC SHALL PROVIDE WRITTEN NOTICE TO
THE SPONSOR (THE "FREDDIE MAC PURCHASE NOTICE") NOT LESS THAN FIFTEEN (15) DAYS
PRIOR TO THE PROPOSED RELEASE EVENT DATE IDENTIFYING EACH SERIES OF BONDS GIVING
RISE TO A RELEASE EVENT, THE CIRCUMSTANCES GIVING RISE TO SUCH RELEASE EVENT AND
THE PROPOSED PURCHASE DATE AND STATING THAT THE SPONSOR MAY ELECT TO FUND OR
CAUSE THE FUNDING OF SUCH PURCHASE OF THE SERIES OF BONDS.
In the event the Sponsor elects to fund or cause the funding of the purchase of
the affected series of Bonds, the provisions of subsection (a) above shall
apply.
In the event the Sponsor does not elect to fund or cause the funding of the
purchase of the affected series of Bonds, and Freddie Mac does not decide to
terminate the Release Event, the affected series of Bonds are required to be
purchased with funds drawn pursuant to the Credit Enhancement by Freddie Mac
under the Series Certificate Agreement, and such series of Bonds shall be
delivered to the Pledge Custodian and held in the name of the Pledge Custodian
as applicable for the benefit of the Sponsor subject to the lien in favor of
Freddie Mac.
All such moneys for the purchase of such series of Bonds shall be
applied as provided in