THE VALUE OF THE MORTGAGED PROPERTY.
(UU)
EARTHQUAKE INSURANCE.
WITH RESPECT TO EACH MORTGAGED PROPERTY
LOCATED IN CALIFORNIA, OREGON OR WASHINGTON, A SEISMIC ANALYSIS HAS BEEN
CONDUCTED BY A RECOGNIZED FIRM EXPERIENCED IN CONDUCTING SUCH ANALYSES.
FOR
EACH SUCH MORTGAGED PROPERTY WITH RESPECT TO WHICH THE APPLICABLE SEISMIC
ANALYSIS SHOWS EITHER, (A)(I) A PROBABLE MAXIMUM LOSS OR BOUNDED MAXIMUM LOSS OF
GREATER THAN 30% OR (II) A LEVEL OF SEISMIC RISK (AS MEASURED BY ANOTHER METRIC)
WHICH IS JOINTLY AGREED BY THE PARTIES TO BE EQUIVALENT TO A PML OF LESS THAN
30% AND (B) TOTAL "PROPERTY EQUITY" THAT IS GREATER THAN THE DOLLAR AMOUNT OF
THE PROPERTY'S "THEORETICAL MAXIMUM EXPECTED LOSS", WHERE "PROPERTY EQUITY" IS
DEFINED AS THE DIFFERENCE BETWEEN (I) THE CURRENT VALUE OF THE PROPERTY
(EXCLUDING THE VALUE OF REMAINING TAX CREDITS) AS AGREED BY CENTERLINE AND
FREDDIE MAC; AND (II) THE CURRENT UNPAID PRINCIPAL BALANCE OF THE BOND(S), AND
"THEORETICAL MAXIMUM EXPECTED LOSS" IS DEFINED AS THAT DOLLAR FIGURE DETERMINED
BY THE SEISMIC ASSESSMENT REPORT PREPARED AT THE TIME OF THE ORIGINAL BOND
UNDERWRITING, EARTHQUAKE INSURANCE IS CURRENTLY MAINTAINED BY THE RELATED OWNER
WITH A DEDUCTIBLE NOT IN EXCESS OF $50,000 FROM AN INSURANCE COMPANY WITH AN
INSURER RATING (BASED ON LOAN SIZE) AS INDICATED ON SCHEDULE G, WITH THE BOND
TRUSTEE NAMED AS A LOSS PAYEE OR ADDITIONAL INSURED.
(VV)
BONDHOLDER REPRESENTATIVE OBLIGATIONS.
NONE OF THE BOND DOCUMENTS
REQUIRES OR OBLIGATES THE BONDHOLDER REPRESENTATIVE TO PAY THE FEES AND EXPENSES
OF ANY PARTY, INCLUDING ANY OBLIGATIONS OF THE OWNER, OR TO PAY CAPITALIZED
INTEREST OR ANY OTHER COSTS DURING ANY CONSTRUCTION OR REHABILITATION PERIOD FOR
ANY MORTGAGED PROPERTY.
(WW)
ESCROWS.
EXCEPT AS SET FORTH ON SCHEDULE D, EACH OWNER HAS
ESTABLISHED ALL ESCROWS AND RESERVES REQUIRED BY THE BOND MORTGAGE AND THE BOND
MORTGAGE DOCUMENTS.
(XX)
UNDERWRITING.
EACH BOND MORTGAGE LOAN AND MORTGAGED PROPERTY WAS
UNDERWRITTEN IN COMPLIANCE WITH THE SERVICER'S INSTITUTIONAL UNDERWRITING
STANDARDS, AND THE INFORMATION CONTAINED IN THE DATA TAPE IS TRUE AND ACCURATE
IN ALL MATERIAL RESPECTS, OR, IN THE CASE OF PRO FORMA NET OPERATING INCOME, WAS
DEVELOPED IN A MANNER THAT SATISFIES THE REQUIREMENTS OF THE SERVICER'S
INSTITUTIONAL UNDERWRITING STANDARDS.
23
(YY)
DOCUMENTATION.
ALL COPIES OF DOCUMENTS DELIVERED TO FREDDIE MAC
UNDER SECTION 2.3 OF THIS AGREEMENT ARE TRUE AND ACCURATE COPIES OF THE
ORIGINALS.
THE SPONSOR HAS IN ITS POSSESSION NO DOCUMENTS DESCRIBED IN
SECTION 2.3 OF THIS AGREEMENT COPIES OF WHICH HAVE NOT BEEN DELIVERED OR MADE
AVAILABLE TO FREDDIE MAC.
(ZZ)
STABILIZATION STANDARDS.
THE CONDITIONS TO ACHIEVE STABILIZATION
SET FORTH IN THE RELATED BOND DOCUMENTS WITH RESPECT TO EACH NON-STABILIZED
MORTGAGE PROPERTY AND THE CALCULATIONS TO BE PERFORMED WITH RESPECT TO THE
FINANCIAL TESTS RELATED TO ACHIEVEMENT OF STABILIZATION AND THE METHODOLOGY FOR
SUCH CALCULATIONS TO BE USED BY THE SERVICER IN CONNECTION THEREWITH MEET THE
MINIMUM CONDITIONS SET FORTH ON SCHEDULE H HERETO.
Section 2.2
Other Representations and Warranties by the Sponsor and
Representations and Warranties by Freddie Mac.
(A)
THE SPONSOR REPRESENTS AND WARRANTS