A MORTGAGE LOAN HAS BEEN DAMAGED BY WASTE, FIRE,
EARTHQUAKE OR EARTH MOVEMENT, WINDSTORM, FLOOD, TORNADO OR OTHER CASUALTY OR
OTHERWISE DAMAGED SO AS TO AFFECT ADVERSELY ITS MARKET VALUE; AND
(II)
PROMPTLY UPON RECEIPT OF NOTICE OR
KNOWLEDGE OF (A) ANY MATERIAL DEFAULT RELATED TO ANY MORTGAGE LOAN, (B) ANY LIEN
OR SECURITY INTEREST (OTHER THAN SECURITY INTERESTS CREATED HEREBY) ON, OR CLAIM
ASSERTED AGAINST, ANY OF THE MORTGAGE LOANS WHICH, INDIVIDUALLY OR TOGETHER WITH
SUCH LIENS, SECURITY INTERESTS OR CLAIMS, IS REASONABLY LIKELY TO HAVE A
MATERIAL ADVERSE EFFECT OR (C) ANY EVENT OR CHANGE IN CIRCUMSTANCES WHICH COULD
REASONABLY BE EXPECTED TO HAVE A MATERIAL ADVERSE EFFECT.
18
Section 5.02
Monthly Reports.
Not later than
5:00 p.m. New York City time on each Payment Date, the TRS Servicer will provide
to the TRS Sub-Trust and UBS, by electronic or other format acceptable to UBS,
the following information in respect of the preceding month:
(I)
SUMMARY OF DELINQUENCY AND LOSS
EXPERIENCE;
(II)
WITH RESPECT TO ANY MERS DESIGNATED
MORTGAGE LOAN, MERS REPORTS;
(III)
A REMITTANCE REPORT, IN HARD COPY AND
ELECTRONIC FORMAT ACCEPTABLE TO UBS, CONTAINING THE FOLLOWING INFORMATION
REGARDING FUNDS COLLECTED DURING THE PRIOR CALENDAR MONTH:
(1)
MORTGAGE LOAN NUMBER;
(2)
NOTE RATE;
(3)
REMITTANCES ALLOCABLE TO PRINCIPAL AND
INTEREST, ESCROW AND TAXES;
(4)
PAID THROUGH DATE;
(5)
MORTGAGE LOAN BALANCE;
(6)
DELINQUENCY STATUS;
(7)
WHETHER THE MORTGAGED PROPERTY IS IN
FORECLOSURE OR HAS BECOME AN REAL ESTATE OWNED PROPERTY;
(8)
WHETHER ANY MORTGAGOR IS THE SUBJECT OF ANY
BANKRUPTCY ACTION; AND
(9)
ANY OTHER INFORMATION THAT UBS MAY
REASONABLY REQUEST;
(IV)
ANY ADDITIONAL REPORTS WITH RESPECT TO THE TRS
SERVICER'S SERVICING PORTFOLIO AS UBS
MAY REASONABLY REQUEST;
(V)
ANY OTHER REPORTS AS DEEMED NECESSARY AT
SECURITIZATION AND REASONABLY PREPARED BY THE TRS SERVICER.
In addition, the TRS Servicer shall provide UBS with such information concerning
the Mortgage Loans as is necessary for UBS to prepare its federal income tax
returns as UBS may reasonably request from time to time.
19
ARTICLE VI
GENERAL SERVICING PROCEDURES
Section 6.01
Transfers of Mortgaged Property.
Except as limited by applicable law, the TRS Servicer shall use commercially
reasonable efforts to enforce any "due-on-sale" provision contained in any
Mortgage or Mortgage Note and to deny assumption by the Person to whom the
Mortgaged Property has been or is about to be sold whether by absolute
conveyance or by contract of sale, and whether or not the Mortgagor remains
liable on the Mortgage and the Mortgage Note.
When the Mortgaged Property has
been conveyed by the Mortgagor, the TRS Servicer shall, to the extent it has
knowledge of such conveyance, exercise its rights to accelerate the maturity of
such Mortgage Loan under the "due-on-sale" clause applicable thereto, provided,
however, that the TRS Servicer shall not exercise such rights if prohibited by
law from doing so.
If the TRS Servicer reasonably believes it is unable under applicable law to
enforce such "due-on-sale" clause, the TRS Servicer shall endeavor to enter into