Document:

Exhibit
10.5

 

AMENDED
AND RESTATED MORTGAGE LOAN REPURCHASE AGREEMENT

 

	
  PURCHASER:

  	
   

  	
  UBS WARBURG REAL
  ESTATE SECURITIES INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ADDRESS:

  	
   

  	
  1285 AVENUE OF
  THE AMERICAS

  
	
   

  	
   

  	
  NEW YORK, NEW
  YORK  10019

  
	
   

  	
   

  	
  ATTENTION:

  	
  GEORGE
  MANGIARACINA

  
	
   

  	
   

  	
  TELEPHONE:

  	
  (212) 713-3734

  
	
   

  	
   

  	
  ATTENTION:

  	
  ROBERT CARPENTER

  
	
   

  	
   

  	
  TELEPHONE:

  	
  (212) 713-8749

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SELLER:

  	
   

  	
  MORTGAGEIT, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ADDRESS:

  	
   

  	
  33 MAIDEN LANE

  
	
   

  	
   

  	
  NEW YORK, NEW
  YORK  10038

  
	
   

  	
   

  	
  ATTENTION:  MIKE ZIGROSSI

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DATE OF
  AGREEMENT:

  	
   

  	
  JANUARY 10,
  2003

  
						

 

 

TABLE OF CONTENTS

 

	
  SECTION 1.

  	
  DEFINITIONS

  	
  2

  
	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
  PROCEEDS FOR
  PURCHASES OF MORTGAGE LOANS

  	
  15

  
	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
  PROCEDURE
  FOR REPURCHASES OF MORTGAGE LOANS

  	
  18

  
	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
  TERMS OF EACH TRANSACTION

  	
  20

  
	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
  CASH ACCOUNT

  	
  21

  
	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
  SERVICING OF THE
  MORTGAGE LOANS

  	
  21

  
	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
  REMEDIES; MARGIN DEFICITS

  	
  23

  
	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
  TRANSFER OF
  MORTGAGE LOAN BY PURCHASER

  	
  26

  
	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
  RECORD
  TITLE TO MORTGAGE LOANS; INTENT OF PARTIES; SECURITY INTEREST

  	
  26

  
	
   

  	
   

  	
   

  
	
  SECTION 10.

  	
  REPRESENTATIONS AND
  WARRANTIES

  	
  27

  
	
   

  	
   

  	
   

  
	
  SECTION 11.

  	
  COVENANTS OF SELLER

  	
  30

  
	
   

  	
   

  	
   

  
	
  SECTION 12.

  	
  PERIODIC DUE DILIGENCE

  	
  33

  
	
   

  	
   

  	
   

  
	
  SECTION 13.

  	
  THIRD PARTY SERVICING

  	
  34

  
	
   

  	
   

  	
   

  
	
  SECTION 14.

  	
  CONFIDENTIALITY

  	
  34

  
	
   

  	
   

  	
   

  
	
  SECTION 15.

  	
  TERM

  	
  35

  
	
   

  	
   

  	
   

  
	
  SECTION 16.

  	
  EXCLUSIVE
  BENEFIT OF PARTIES; ASSIGNMENT

  	
  35

  
	
   

  	
   

  	
   

  
	
  SECTION 17.

  	
  AMENDMENTS;
  WAIVERS; CUMULATIVE RIGHTS

  	
  35

  
	
   

  	
   

  	
   

  
	
  SECTION 18.

  	
  EXECUTION IN COUNTERPARTS

  	
  35

  
	
   

  	
   

  	
   

  
	
  SECTION 19.

  	
  EFFECT OF INVALIDITY
  OF PROVISIONS

  	
  35

  
	
   

  	
   

  	
   

  
	
  SECTION 20.

  	
  GOVERNING LAW

  	
  35

  
	
   

  	
   

  	
   

  
	
  SECTION 21.

  	
  NOTICES

  	
  35

  
	
   

  	
   

  	
   

  
	
  SECTION 22.

  	
  ENTIRE AGREEMENT

  	
  35

  
	
   

  	
   

  	
   

  
	
  SECTION 23.

  	
  COSTS OF ENFORCEMENT

  	
  36

  
	
   

  	
   

  	
   

  
	
  SECTION 24.

  	
  PURCHASER’S
  APPOINTMENT AS ATTORNEY-IN-FACT

  	
  36

  
	
   

  	
   

  	
   

  
	
  SECTION 25.

  	
  SUBMISSION TO
  JURISDICTION; WAIVERS

  	
  37

  
	
   

  	
   

  	
   

  
	
  SECTION 26.

  	
  CONSTRUCTION

  	
  38

  

 

i

 

	
  SCHEDULES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule 1

  	
  Representations and
  Warranties regarding Mortgage Loans

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  Closing Loan Purchase
  Detail Fields

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit B

  	
  Rewarehousing Loan
  Purchase Detail Fields

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit C

  	
  Conversion Loan
  Purchase Detail Fields

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit D

  	
  Withdrawal/Deposit
  Notice

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit E

  	
  Cash Account Wire
  Instructions

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit F

  	
  Cash Account Adjustment
  Notice

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit G

  	
  [Intentionally Left
  Blank]

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit H

  	
  Purchaser’s Wire
  Instructions to Seller

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit I

  	
  UCC-1 Financing
  Statement

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit J

  	
  Seller’s Delivery
  Instructions

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit K

  	
  Seller’s Release

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit L

  	
  Seller’s Wire
  Instructions

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit M

  	
  Warehouse Lender’s
  Release

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit N

  	
  Authorized Signatures
  of Seller

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit O

  	
  Warehouse Lender’s Wire
  Instructions

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit P

  	
  MBS Swap Funding
  Program Selection Notice

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit Q

  	
  Request For Mortgage
  Loan Shipment

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit R

  	
  MBS Swap Shipment
  Documents

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit S

  	
  Form of Closing
  Instruction Letter Insert

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit T

  	
  Seller’s Underwriting
  Guidelines

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit U

  	
  Form of Opinion

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit V

  	
  UCC Filing Jurisdictions

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit W

  	
  Form of Servicer Notice

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit X

  	
  Form of Covenant
  Compliance Letter

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit Y

  	
  Form of Request for
  Purchase

  	
   

  

 

ii

 

 

AMENDED AND RESTATED
MORTGAGE LOAN REPURCHASE AGREEMENT

 

This Amended and
Restated Mortgage Loan Repurchase Agreement (“Agreement”), dated as of
the date set forth on the cover page hereof, between UBS WARBURG REAL ESTATE
SECURITIES INC. (“Purchaser” or “UBSRES”) and the Seller whose
name is set forth on the cover page hereof (“Seller”).

 

RECITALS

 

WHEREAS, the
Purchaser and the Seller are parties to the Mortgage Loan Repurchase Agreement,
dated as of March 26, 2001 (the “Original Repurchase Agreement”);

 

WHEREAS, pursuant
to the Original Repurchase Agreement, Seller may have, in its sole discretion,
offered to sell to Purchaser from time to time Mortgage Loans (as defined
therein), subject to Seller’s obligation to repurchase such Mortgage Loans in
accordance with the terms therein and Purchaser, in its sole discretion, may
have agreed to purchase such Mortgage Loans from Seller in accordance with the
terms and conditions set forth in the Original Repurchase Agreement;

 

WHEREAS, the
Seller and the Purchaser desire to amend and restate the Original Repurchase
Agreement as provided herein;

 

NOW, THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree that the Original
Repurchase Agreement be amended and restated in its entirety as follows:

 

PRELIMINARY STATEMENT

 

Seller is engaged
among other pursuits, in the business of originating, purchasing and selling
Mortgage Loans.  Purchaser is engaged
in, among other pursuits, the business of purchasing Mortgage Loans.

 

Seller may, in its
sole discretion, offer to sell to Purchaser from time to time Mortgage Loans,
subject to Seller’s obligation to repurchase such Mortgage Loans in accordance
with the terms herein and Purchaser, in its sole discretion, may agree to
purchase such Mortgage Loans from Seller in accordance with the terms and
conditions set forth in this Agreement. 
It is contemplated by the parties hereto that the Mortgage Loans subject
to this Agreement, from time to time, will become the subject of transactions
in which Purchaser purchases such Mortgage Loans from Seller on a servicing
released basis.  Seller subsequently
will offer to sell such Mortgage Loans to Purchaser on a servicing released
basis, and Purchaser, pursuant to one of the UBSRES Purchase Programs, may
elect to purchase such Mortgage Loans from Seller.

 

The parties hereto
hereby agree as follows:

 

 

Section 1.                                            Definitions.

 

Capitalized terms
used but not defined herein shall have the meanings set forth in the Custodial
Agreement.  As used in this Agreement, the
following terms shall have the following meanings:

 

“Act of Insolvency” shall mean, with respect to any party and
its Affiliates, (i) the filing of a petition, commencing, or authorizing
the commencement of any case or proceeding under any bankruptcy, insolvency,
reorganization, liquidation, dissolution or similar law relating to the
protection of creditors, or suffering any such petition or proceeding to be
commenced by another which is consented to, not timely contested or results in
entry of an order for relief; (ii) the seeking the appointment of a
receiver, trustee, custodian or similar official for such party or an Affiliate
or any substantial part of the property of either; (iii) the appointment
of a receiver, conservator, or manager for such party or an Affiliate by any
governmental agency or authority having the jurisdiction to do so;
(iv) the making or offering by such party or an Affiliate of a composition
with its creditors or a general assignment for the benefit of creditors;
(v) the admission by such party or an Affiliate of such party of its
inability to pay its debts or discharge its obligations as they become due or
mature; or (vi) that any governmental authority or agency or any person,
agency or entity acting or purporting to act under governmental authority shall
have taken any action to condemn, seize or appropriate, or to assume custody or
control of, all or any substantial part of the property of such party or of any
of its Affiliates, or shall have taken any action to displace the management of
such party or of any of its Affiliates or to curtail its authority in the
conduct of the business of such party or of any of its Affiliates.

 

“Affiliate”:  With
respect to any Person, any “affiliate” of such Person, as such term is defined
in the Bankruptcy Code.

 

“Agency”:  The Government
National Mortgage Association (“GNMA”), the Federal National Mortgage
Association (“Fannie Mae”), and the Federal Home Loan Mortgage
Corporation (“Freddie Mac”), as applicable.

 

“Agency Approvals”: 
Shall have the meaning ascribed thereto in Section 10(a)(xii) of
this Agreement.

 

“Agency Eligible Mortgage Loan”:  A mortgage loan that is in strict compliance with the eligibility
requirements for swap or purchase by the designated Agency, under the
applicable Agency Guide and/or applicable Agency Program.

 

“Agency Guide”: The GNMA Mortgage-Backed Securities Guide; the
Fannie Mae Selling Guide and the Fannie Mae Servicing Guide; the Freddie Mac
Sellers’ and Servicers’ Guide; as applicable, in each case as such Agency Guide
may be amended from time to time.

 

“Agency Program”:  The
specific purchase program under the relevant Agency Guide or as otherwise
approved by the Agency.

 

“Assignee”:  With respect
to this Agreement and any Mortgage Loan, any assignee of the Purchaser pursuant
to a pledge or rehypothecation of the Mortgage Loan.

 

2

 

“Asset Value”:  With
respect to each Mortgage Loan, the lesser of (a) the Market Value of such
Mortgage Loan less the related Discount or (b) the outstanding principal
balance of such Mortgage Loan less the Discount; provided, that, the Asset
Value shall be deemed to be zero with respect to each Mortgage Loan (1) in
respect of which there is a breach of a representation and warranty set forth
in Schedule 1 (assuming each representation and warranty is made as of the
date Asset Value is determined), (2) in respect of which there is a
delinquency in the payment of principal and/or interest which continues for a
period in excess of twenty nine (29) calendar days (without regard to any
applicable grace periods), (3) which has not been repurchased by the
Seller by its Scheduled Repurchase Date, or (4) which has been released
from the possession of the Custodian under the Custodial Agreement to the
Seller for a period in excess of ten (10) calendar days; provided that the
Purchaser may, in its sole and absolute discretion, assign a market value above
zero with respect to any Mortgage Loan that would otherwise be deemed to have
an Asset Value of zero.

 

“Authorized Signatory”: 
An officer of the Seller who is authorized and empowered to request a
purchase of Mortgage Loans by the Purchaser pursuant to a Request for Purchase,
and is indicated on the Authorized Signatories of the Seller attached hereto as
Exhibit N.

 

“Bankruptcy Code”: The United States Bankruptcy Code of 1978, as
amended from time to time.

 

“Business Day”:  Any day
other than (a) a Saturday, Sunday or other day on which banks located in
the City of New York, New York are authorized or obligated by law or executive
order to be closed, or (b) any day on which UBSRES is closed for business,
provided that notice thereof shall have been given not less than seven calendar
days prior to such day.

 

“Capital Lease Obligations”: For any Person, all obligations of
such Person to pay rent or other amounts under a lease of (or other agreement
conveying the right to use) Property to the extent such obligations are
required to be classified and accounted for as a capital lease on a balance
sheet of such Person under GAAP, and, for purposes of this Agreement, the
amount of such obligations shall be the capitalized amount thereof, determined
in accordance with GAAP.

 

“Cash Account”:  A
separate cash account established and maintained by Seller at UBSRES under the
conditions set forth in Section 5.

 

“Cash Account Adjustment”: 
An adjustment to the Cash Account Balance pursuant to a Cash Account
Adjustment Notice.

 

“Cash Account Adjustment Notice”:  The cash account adjustment notice, in the form of Exhibit F;
to be used by Purchaser to notify Seller of any adjustments to the Cash Account
Balance.

 

“Cash Account Balance”: 
As of any date, the net amount of funds in the Cash Account on such
date.

 

3

 

“Cash Account Interest Accrual”:  The simple interest calculation posted on the last Business Day
of each month resulting from the product of each Business Day’s Cash Account
Balance and Cash Account Interest Rate.

 

“Cash Account Interest Rate”: 
With respect to each month, the average opening federal funds rate for
such month.  The opening federal funds
rate on a Business Day shall be counted as the Cash Account Interest Rate until
the next Business Day.

 

“Cash Account Wire Instructions”:  The wire instructions, set forth in a letter in the form of
Exhibit E, to be used for the payment of funds to Seller.

 

“Closing Instruction Letter” shall mean with respect to each Wet
Mortgage Loan which is being originated in part by the proceeds of a Closing
Transaction, the instruction letter of the Seller with respect to such
origination which is acknowledged by the Escrow Agent.

 

“Closing Instruction Letter Insert”:  A paragraph in the form of Exhibit S hereto which shall be
inserted into the Closing Instruction Letter.

 

“Closing Loan Purchase Detail”: 
A loan purchase detail, prepared by Seller and delivered by Seller to
Purchaser via electronic transmission containing all information specified on
Exhibit A (as such information may be amended from time to time by notice
from Purchaser to Seller) in a form acceptable to Purchaser, regarding the
characteristics of a Mortgage Loan being offered for sale by Seller to
Purchaser under a Closing Transaction.

 

“Closing Transaction”: 
Any sale of a Mortgage Loan by Seller to Purchaser, structured as either
a Wet Funding or a Dry Funding, wherein Purchaser wires the Disbursement Amount
in accordance with the Escrow Agent Standing Wire Instructions subject to an
obligation of Seller to repurchase such Mortgage Loan pursuant to this Agreement.

 

“Collateral”:  Each of
the following items or types of property, whether now owned or hereafter
acquired, now existing or hereafter created and wherever located:  the Mortgage Loans, all mortgage loan
documents (including, without limitation, all promissory notes, all servicing
records, servicing agreements and any other collateral pledged or otherwise
relating to such Mortgage Loans), together with all files, documents,
instruments, surveys, certificates, correspondence, appraisals, computer programs,
computer storage media, accounting records and other books and records relating
thereto, all mortgage guaranties and insurance (issued by governmental agencies
or otherwise) and any mortgage insurance certificate or other document
evidencing such mortgage guaranties or insurance relating to any Mortgage Loan,
all Servicing Rights relating to the Mortgage Loans, any servicing accounts
established pursuant to any Servicing Agreement and all amounts on deposit
therein, from time to time, all purchase agreements or other agreements or
contracts relating to, constituting, or otherwise governing, any or all of the
foregoing to the extent they relate to the Mortgage Loans including the right
to receive principal and interest payments with respect to the Mortgage Loans
and the right to enforce such payments, the Cash Account and all monies from
time to time on deposit in the Cash Account, the Custodial Account and all
monies from time to time on deposit in the Custodial Account, all “general
intangibles”, “accounts”, “chattel paper” and “investment

 

4

 

property” as
defined in the UCC relating to or constituting any and all of the foregoing,
and any and all replacements, substitutions, distributions on or proceeds of any
and all of the foregoing.

 

“Collateral Receipt”: 
With respect to each Wet Mortgage Loan, the receipt by Custodian on a
Business Day of a Dry Submission Package or Conduit Submission Package.

 

“Collateral Receipt Adjustment”:  The process initiated by Collateral Receipt wherein the
Pass-Through Rate on a Wet Mortgage Loan is reduced, effective from the date of
Collateral Receipt through one calendar day prior to the Repurchase Date.

 

“Collateral Receipt Date”: 
With respect to each Wet Mortgage Loan, the Business Day on which a
Collateral Receipt occurs.

 

“Conduit Funding Program”: 
A program pursuant to the terms of the Custodial Agreement and the
Amended and Restated Mortgage Loan Purchase Agreement dated as of the date set
forth on the cover sheet thereof, between Seller and Purchaser as amended from
time to time.

 

“Conduit Submission Package”: 
The documents required to be delivered by Seller to Custodian under the
Conduit Funding Program.

 

“Conversion Loan Purchase Detail”:  A loan purchase detail, prepared by Seller and delivered by
Seller to Purchaser via electronic transmission containing the information set
forth on Exhibit C, in a form acceptable to Purchaser, regarding the
characteristics of a Mortgage Loan that is subject to repurchase and that is
subsequently offered to Purchaser under the Conduit Funding Program.

 

“Co-op” shall mean a private, cooperative housing corporation,
having only one class of stock outstanding, which owns or leases land and all
or part of a building or buildings, including apartments, spaces used for
commercial purposes and common areas therein and whose board of directors
authorizes the sale of stock and the issuance of a Co-op Lease.

 

“Co-op Lease” shall mean, with respect to a Co-op Loan, the
lease with respect to a dwelling unit occupied by the Mortgagor and relating to
the stock allocated to the related dwelling unit.

 

“Co-op Loan” shall mean a Mortgage Loan, which is secured by the
pledge of stock allocated to a dwelling unit in a Co-op and a collateral
assignment of the related Co-op Lease.

 

“Co-op Security Agreement” shall mean the agreement creating a
first lien security interest in the stock allocated to a dwelling unit in the
residential cooperative housing corporation that was pledged to secure such
Co-op Loan and the related Co-op Lease.

 

“Credit File”:  All
papers and records of whatever kind or description, whether developed or
originated by Seller or others, required to document or service the Mortgage
Loan; provided however, that such Mortgage Loan papers, documents and records
shall not include any 

 

5

 

Mortgage Loan
papers, documents or records which are contained in the Dry Submission Package.

 

“Custodial Account”:  A
separate custodial account, established and maintained by Seller under the
conditions set forth in Section 6(b), for the deposit by Seller of all
collections in respect of a Mortgage Loan that are payable to Purchaser as the
owner of the Mortgage Loan.

 

“Custodial Agreement”: 
The Amended and Restated Mortgage Loan Custodial Agreement, dated as of
the date set forth on the cover sheet thereof, among Seller, Purchaser and
Custodian, as amended from time to time. 
Such Amended and Restated Mortgage Loan Custodial Agreement governs
Purchaser’s Whole Loan Purchase Program and Conduit Funding Program.

 

“Custodial Fee”:  With
respect to each Repurchase, a fee payable to Purchaser by Seller in the amount
set forth on the related Funding Confirmation, and remitted to Purchaser on the
related Repurchase Date as a component of the related Repurchase Price .

 

“Custodian”: The custodian named in the Custodial Agreement, and
its permitted successors hereunder.

 

“Defective Mortgage Loan”: 
A Mortgage Loan that is not in compliance with this Agreement and/or the
Electronic Tracking Agreement, including but not limited to a Mortgage Loan
that is not in compliance with the representations and warranties set forth on
Schedule 1 hereto.

 

“Desired Funding Date”: 
The Business Day indicated by the Seller on the Closing Loan Purchase
Detail, on which Seller desires Purchaser to purchase a Mortgage Loan via a Wet
Funding or a Dry Funding or the Business Day indicated by Seller on the
Rewarehousing Loan Purchase Detail, on which Seller desires Purchaser to
purchase a Mortgage Loan via a Dry Funding.

 

“Disbursement Amount”: 
With respect to a Mortgage Loan, the amount set forth on the related
Closing Loan Purchase Detail or Rewarehousing Loan Purchase Detail as the
“Disbursement Amount”.

 

“Discount”:  With respect
to each Mortgage Loan, the amount, determined by the Purchaser in its sole and
absolute discretion, set forth on the related Funding Confirmation as the
“Discount.”

 

“Document File”:  The
Credit File and the Dry Submission Package.

 

“Dry Funding”:  Either
(i) a Closing Transaction initiated by the delivery by Seller, via
electronic transmission to Purchaser of a Closing Loan Purchase Detail and the
receipt by Custodian of a Dry Submission Package or (ii) a Rewarehousing
Transaction initiated by the delivery by Seller, via electronic transmission to
Purchaser, of a Rewarehousing Loan Purchase Detail, a Warehouse Lender’s or
Seller’s Release and the Custodian’s receipt of a Dry Submission Package.

 

6

 

“Dry Mortgage Loan”:  A
Mortgage Loan with respect to which (i) Custodian has received a Dry
Submission Package and (ii) no Repurchase has occurred.

 

“Dry Submission Package”: 
The documents required to be delivered by Seller to Custodian pursuant
to the Custodial Agreement.

 

“Due Date”:  The day of
the month on which the Monthly Payment is due on the Mortgage Loan.

 

“Electronic Agent”: 
MERSCORP, INC, and its successors in interest.

 

“Electronic Tracking Agreement”:  The Electronic Tracking Agreement, if any, dated as of the date
hereof, among Purchaser, Seller, MERSCORP, Inc. and Mortgage Electronic
Registration Systems, Inc.; provided that if no Mortgage Loans are or will be
MERS Designated Mortgage Loans, all references herein to the Electronic
Tracking Agreement shall be disregarded.

 

“Escrow Agent”:  The
agent appointed by the Title Insurance Company to administer the closing of a
Mortgage Loan.

 

“Escrow Agent Standing Wire Instructions”:  The wire instructions of the Escrow Agent
set forth in the applicable Closing Loan Purchase Detail, from Seller to
Purchaser for use when Purchaser wires Disbursement Amounts for Wet Fundings
and Dry Fundings structured as Closing Transactions.

 

“Event of Default”:  The
occurrence of any of the following events: 
(i) an Act of Insolvency with respect to Seller or Parent Company;
(ii) any representation or warranty made by Seller hereunder shall have
been incorrect or untrue in any material respect when made or when deemed to
have been made; (iii) Seller shall fail to perform, or shall admit to
Purchaser its inability to, or its intention not to, perform any of its
obligations hereunder or under the Electronic Tracking Agreement; (iv) an
event or events shall have occurred resulting in the effective absence of a
“repo market” or comparable “lending market” for financing debt obligations
secured by mortgage loans or securities or an event or events shall have
occurred resulting in the Purchaser not being able to finance any Mortgage
Loans through the “repo market” or “lending market” with traditional
counterparties at rates which would have been reasonable prior to the
occurrence of such event or events; (v) an event or events shall have
occurred resulting in the effective absence of a “securities market” for
securities backed by mortgage loans or an event or events shall have occurred
resulting in the Purchaser not being able to sell securities backed by mortgage
loans at prices which would have been reasonable prior to such event or events;
(vi) there shall have occurred a material adverse change in the “repo
market” or comparable “lending market” or in the financial condition of the
Purchaser which effects (or can reasonably be expected to effect) materially
and adversely the ability of the Purchaser to fund its obligations under this
Agreement; (vii) the Seller or any of the Seller’s Affiliates shall be in
default beyond any applicable grace period under any note, indenture, loan
agreement, guaranty, swap agreement or any other contract to which it is a
party; (viii) the Seller shall fail to comply with the requirements of any
of Section 7(h), Sections 11(a) through 11(c) (inclusive),
Section 11(e), Section 11(h) through 11(j) (inclusive) or
Section 11(n); (viii)(a) the

 

7

 

Seller shall fail
to comply with the requirements of any of Section 11(k) through
Section 11(m) (inclusive) or (b) the Seller shall fail to comply with the
requirements on any other subsection in Section 11 (other than those
specifically enumerated in preceding clause (vii) or (viii)(a)), and such
default shall continue unremedied for a period of three Business Days; (ix) if
the Purchaser has purchased MERS Designated Mortgage Loans, the Electronic
Tracking Agreement has for whatever reason been terminated or ceases to be in full
force and effect and the Purchaser (or the Custodian as its designee) shall not
have received an assignment of mortgage with respect to each MERS Designated
Mortgage Loan, in blank, in recordable form, but unrecorded; (x) any
materially adverse change in the Property, business, financial condition or
prospects of the Seller or any of its Affiliates shall occur, in each case as
determined by the Purchaser in its sole discretion, or any other condition
shall exist which, in the Purchaser’s sole discretion, constitutes a material
impairment of the Seller’s ability to perform its obligations under this
Agreement or any other document in connection herewith; or (xi) the
discovery by the Purchaser of a condition or event which existed at or prior to
the execution hereof and which the Purchaser, in its sole discretion,
determines materially and adversely affects: (a) the condition (financial
or otherwise) of the Seller, its Subsidiaries or Affiliates; or (b) the
ability of either Seller or Purchaser to fulfill its respective obligations
under this Agreement.

 

“FDIC”:  The Federal
Deposit Insurance Corporation or any successor thereto.

 

“Freddie Mac”:  Freddie
Mac or any successor thereto.

 

“Fannie Mae”:  Fannie Mae
or any successor thereto.

 

“Funding Confirmation”: 
With respect to each Mortgage Loan purchased by Purchaser from Seller
via a single wire funds transaction on a particular Business Day, the trade
confirmation from Purchaser to Seller confirming Seller’s obligation to
repurchase such Mortgage Loan from Purchaser by the Scheduled Repurchase Date.

 

“GAAP”:  Generally
accepted accounting principles as in effect from time to time in the United
States.

 

“GMNA”:  The Government
National Mortgage Association or any successor thereto.

 

“Guarantee”: As to any Person, any obligation of such Person
directly or indirectly guaranteeing any Indebtedness of any other Person or in
any manner providing for the payment of any Indebtedness of any other Person or
otherwise protecting the holder of such Indebtedness against loss (whether by
virtue of partnership arrangements, by agreement to keep-well, to purchase
assets, goods, securities or services, or to take-or-pay or otherwise);
provided that the term “Guarantee” shall not include (i) endorsements for
collection or deposit in the ordinary course of business, or
(ii) obligations to make servicing advances for delinquent taxes and
insurance or other obligations in respect of a Mortgaged Property, to the
extent required by the Purchaser.  The
amount of any Guarantee of a Person shall be deemed to be an amount equal to
the stated or determinable amount of the primary obligation in respect of which
such Guarantee is made or, if not stated or determinable, the maximum
reasonably anticipated

 

8

 

liability in
respect thereof as determined by such Person in good faith.  The terms “Guarantee” and “Guaranteed” used
as verbs shall have correlative meanings.

 

“Incremental Pass-Through Rate”:  The amount by which the Pass-Through Rate increases upon the
occurrence of any event giving Purchaser the right to elect a remedy pursuant
to Section 7, which amount shall be set forth in the applicable Funding
Confirmation as the “Incremental Pass-Through Rate”.

 

“Indebtedness”:  For any
Person: (a) obligations created, issued or incurred by such Person for
borrowed money (whether by loan, the issuance and sale of debt securities or
the sale of Property to another Person subject to an understanding or
agreement, contingent or otherwise, to repurchase such Property from such
Person); (b) obligations of such Person to pay the deferred purchase or
acquisition price of Property or services, other than trade accounts payable
(other than for borrowed money) arising, and accrued expenses incurred, in the
ordinary course of business so long as such trade accounts payable are payable
within 90 days of the date the respective goods are delivered or the respective
services are rendered; (c) Indebtedness of others secured by a Lien on the
Property of such Person, whether or not the respective Indebtedness so secured
has been assumed by such Person; (d) obligations (contingent or otherwise)
of such Person in respect of letters of credit or similar instruments issued or
accepted by banks and other financial institutions for account of such Person;
(e) Capital Lease Obligations of such Person; (f) obligations of such
Person under repurchase agreements, sale/buy back agreements or like
arrangements; (g) Indebtedness of others Guaranteed by such Person; (h) all
obligations of such Person incurred in connection with the acquisition or
carrying of fixed assets by such Person; and (i) Indebtedness of general
partnerships of which such Person is a general partner.

 

“Interest Rate Protection Agreement” shall mean, with respect to
any or all of the Mortgage Loans, any short sale of US Treasury securities, or
futures contracts, or options related contracts, or interest rate swap, cap or
collar agreement or similar arrangement providing for protection against
fluctuations in interest rates or the exchange of nominal interest obligations
either generally or under specific contingencies and acceptable to Purchaser.

 

“Interim Funder”:  With
respect to each MERS Designated Mortgage Loan, the Person named on the MERS®
System as the interim funder pursuant to the MERS Procedures Manual.

 

“Investor”:  With respect
to each MERS Designated Mortgage Loan, the Person named on the MERS® System as
the investor pursuant to the MERS Procedures Manual.

 

“Lien”: Any mortgage, lien, pledge, charge, security interest or
similar encumbrance.

 

“Losses”:  Any and all
losses, claims, damages, liabilities or expenses (including reasonable
attorneys’ fees) incurred by any person specified; provided, however, that
“Losses” shall not include any losses, claims, damages, liabilities or expenses
which would have been avoided had such person taken reasonable actions to
mitigate such losses, claims, damages, liabilities or expenses.

 

9

 

“Market Value”: As of any date in respect of a Mortgage Loan,
the price at which such Mortgage Loan could readily be sold as determined by
Purchaser in its sole discretion, which price may be determined to be
zero.  Purchaser’s good faith determination
of Market Value shall be conclusive upon the parties.

 

“MBS Swap Custodial Agreement”: 
The custodial agreement, dated as of the date set forth on the cover
sheet thereof, among Seller, Purchaser and custodian as amended from time to
time.  Such custodial agreement governs
Purchaser’s MBS Swap Funding Program.

 

“MBS Swap Funding Program”: 
A program pursuant to the terms of (i) the MBS Swap Mortgage Loan
Participation Agreement dated as of the date set forth on the cover sheet
thereof, among Seller and Purchaser as amended from time to time and
(ii) the MBS Swap Custodial Agreement.

 

“MBS Swap Funding Program Selection Notice”:  A notification that identifies Mortgage
Loans intended for the MBS Swap Funding Program provided by Seller to Purchaser
either (i) on the Closing Loan Purchase Detail or Rewarehousing Loan
Purchase Detail via the “MBS Swap Funding Program Designation” field or
(ii) via a facsimile transmission in the form of Exhibit P, received
by Purchaser prior to the Scheduled Repurchase Date, for any Mortgage Loans
previously purchased without the “MBS Swap Funding Program Designation”.

 

“MBS Swap Shipment Documents”: 
With respect to each Mortgage Loan for which an MBS Swap Funding Program
Selection Notice has been provided, the documents required, as listed in
Exhibit R, to be received by Purchaser from Seller via facsimile
transmission, prior to Purchaser’s carrying out Seller’s instructions for the
Request for Mortgage Loan Shipment.

 

“MBS Swap Submission Package”: 
The documents required to be provided by Seller to Purchaser with
respect to each purchase under the MBS Swap Funding Program, as described in
the MBS Swap Mortgage Loan Participation Agreement and MBS Swap Custodial
Agreement.

 

“MERS Designated Mortgage Loan”:  Mortgage Loans for which (a) the Seller has designated or
will designate MERS as, and has taken or will take such action as is necessary
to cause MERS to be, the mortgagee of record, as nominee for the Seller, in
accordance with MERS Procedure Manual and (b) the Seller has designated or
will designate the Purchaser as the Investor and Interim Funder on the MERS®
System.

 

“MERS Procedure Manual”: 
The MERS Procedures Manual attached as Exhibit B to the Electronic
Tracking Agreement, as it may be amended, supplemented or otherwise modified
from time to time.

 

“MERS Report”:  The
schedule listing MERS Designated Mortgage Loans and other information
prepared by the Electronic Agent pursuant to the Electronic Tracking Agreement.

 

“MERS® System”:  The
Electronic Agent’s mortgage electronic registry system, as more particularly
described in the MERS Procedures Manual.

 

10

 

“Monthly Payment”:  The
scheduled monthly payment of principal and interest on a Mortgage Loan.

 

“Moody’s”:  Moody’s
Investors Service, Inc.

 

“Mortgage”:  With respect
to a Mortgage Loan that is not a Co-op Loan, the mortgage, deed of trust or
other instrument creating a lien on an estate in fee simple in real property
securing a Mortgage Note and, with respect to a Co-op Loan, the Co-op Security
Agreement.

 

“Mortgage Loan”:  A
one-to-four family residential mortgage loan that is underwritten in accordance
with the Underwriting Guidelines and is subject to this Agreement.

 

“Mortgage Note”:  The
note or other evidence of the indebtedness of a Mortgagor or secured by a
Mortgage.

 

“Mortgaged Property”: 
With respect to a Mortgage Loan that is not a Co-op Loan, the property
subject to the lien of the Mortgage securing a Mortgage Note.  With respect to a Co-op Loan, the stock
allocated to a dwelling unit in the residential cooperative housing corporation
that was pledged to secure such Co-op Loan and the related Co-op Lease.

 

“Mortgagor”:  The obligor
on a Mortgage Note.

 

“NCUA”:  The National
Credit Union Administration, or any successor thereto.

 

“Net Income”:  For any
period, the net income of the Seller for such period as determined in
accordance with GAAP.

 

“Note Rate”:  The rate of
interest borne by a Mortgage Note.

 

“Original Repurchase Agreement”:  Shall have the meaning assigned to such term in the recitals
hereof.

 

“OTS”:  The Office of
Thrift Supervision, or any successor thereto.

 

“Parent Company”:  A
corporation or other entity owning at least 50% of the outstanding shares of
voting stock of Seller.

 

“Pass-Through Rate”: 
With respect to each Mortgage Loan, the rate at which interest is passed
through to Purchaser which initially shall be the rate of interest specified on
a Funding Confirmation as the “Pass-Through Rate”.

 

“Person”:  Any
individual, corporation, company, voluntary association, partnership, joint
venture, limited liability company, trust, unincorporated association or
government (or any agency, instrumentality or political subdivision thereof).

 

“Property”: Any right or interest in or to property of any kind
whatsoever, whether real, personal or mixed and whether tangible or intangible.

 

11

 

“Purchase Date”:  With
respect to a Mortgage Loan, the date on which Purchaser purchases such Mortgage
Loan from Seller.

 

“Purchase Price”:  With
respect to each Mortgage Loan, an amount equal to the face amount of the
Mortgage Loan less the Discount.

 

“Purchaser”:  UBS Warburg
Real Estate Securities Inc. and its successors.

 

“Purchaser’s Wire Instructions”:  The wire instructions, set forth in a notice delivered by
Purchaser to Seller in the form of Exhibit H, containing the information
to be used for the payment of all amounts due and payable to Purchaser
hereunder.

 

“Repurchase”:  With
respect to any Mortgage Loan, the transaction by which the Seller remits the
Repurchase Price to Purchaser and simultaneously Purchaser purchases the
Mortgage Loan with a netting of funds resulting, governed by the terms of the
applicable UBSRES Purchase Program.

 

“Repurchase Date”:  With
respect to any Mortgage Loan, the date that Seller remits the Repurchase Price
to Purchaser.

 

“Repurchase Price”:  With
respect to each Mortgage Loan, an amount equal to the Purchase Price plus the
Custodial Fee plus the product of the Purchase Price of the Mortgage Loan, the
Pass-Through Rate and the number of calendar days from the Purchase Date to the
Repurchase Date divided by 360.

 

“Request for Mortgage Loan Shipment”:  Notification provided by Seller to Purchaser via facsimile
transmission in the form of Exhibit Q, which presents Mortgage Loans to be
delivered by Purchaser to the custodian as set forth on the cover page of the
MBS Swap Funding Program Custodial Agreement or under the appropriate
circumstances, Freddie Mac.

 

“RESPA”:  Real Estate
Settlement Procedures Act, as amended from time to time.

 

“Rewarehousing Loan Purchase Detail”:  A loan purchase detail, prepared and submitted by Seller to
Purchaser via electronic transmission containing the information specified on
Exhibit B (as such information may be amended from time to time by notice
from Purchaser to Seller) in a form acceptable to Purchaser, regarding the
characteristics of a Mortgage Loan being offered for sale by, Seller to
Purchaser under a Rewarehousing Transaction.

 

“Rewarehousing Transaction”: 
Any sale of a Mortgage Loan by Seller to Purchaser structured as a Dry
Funding wherein Purchaser wires the Disbursement Amount pursuant to the
Warehouse Lender’s Wire Instructions or the Seller’s Wire Instructions, as
applicable, subject to an obligation of Seller to repurchase such Mortgage Loan
pursuant to this Agreement.

 

“RTC”:  The Resolution
Trust Corporation or any successor thereto.

 

“S&P”: Standard and Poor’s Ratings Services, a division of
McGraw-Hill Companies.

 

12

 

“Scheduled Collateral Receipt Date”:  With respect to each Wet Mortgage Loan, the Business Day, as set
forth on the Funding Confirmation as the “Collateral Receipt Date”, by which a
Collateral Receipt is required to occur, such date to be within five (5) Business
Days of a Wet Funding structured as a Closing Transaction.

 

“Scheduled Repurchase Date”: 
With respect to each Mortgage Loan, the Business Day as set forth on the
Funding Confirmation as the “Repurchase Date”, by which a repurchase is
required to occur, such date to be within five (5) Business Days after the
Purchase Date with respect to a Wet Mortgage Loan unless such Mortgage Loan has
become a Dry Mortgage Loan prior to such fifth Business Day, (ii) within
five (5) Business Days after the Collateral Receipt Date with respect to a Dry
Mortgage Loan or (iii) within five (5) Business Days after the Purchase
Date with respect to a Dry Mortgage Loan for which Seller has provided
Purchaser with an MBS Swap Funding Program Selection Notice, unless, in any case,  such date has been accelerated in connection
with either an Event of Default pursuant to Section 7(a), a Defective
Mortgage Loan pursuant to Section 7(b) or a Margin Deficit pursuant to
Section 7(h).

 

“Seller”:  The Seller
whose name is set forth on the cover page hereof, and its permitted successors
hereunder.

 

“Seller’s Delivery Instructions”:  With respect to each Mortgage Loan for which Seller has remitted
the Repurchase Price to Purchaser and which Purchaser concurrently does not
elect to purchase under a UBSRES Purchase Program, the notification provided by
Seller to Purchaser via facsimile transmission in the Form of Exhibit J,
instructing Purchaser to deliver the Dry Submission Package for such Mortgage
Loan to the indicated address.

 

“Seller’s Release”:  A
letter in the form of Exhibit K, delivered by Seller when no Warehouse
Lender has an interest in a Mortgage Loan, conditionally releasing all of
Seller’s interest in a Mortgage Loan upon receipt of payment by Seller.

 

“Seller’s Wire Instructions”: 
The wire instructions set forth in a letter in the form of
Exhibit L, to be used for the payment of funds to Seller when no Warehouse
Lender has an interest in the Mortgage Loans to which such payment relates.

 

“Servicer”:  Shall have
the meaning provided in Section 13 hereof.

 

“Servicing Agreement”: 
Shall have the meaning provided in Section 13 hereof.

 

“Servicing Rights”: Any and all of the following:  (a) any and all rights to service the
Mortgage Loans; (b) any payments to or monies received by Seller or any
other Person for servicing the Mortgage Loans; (c) any late fees,
penalties or similar payments with respect to the Mortgage Loans; (d) all
agreements or documents creating, defining or evidencing any such servicing
rights to the extent they relate to such servicing rights and all rights of
Seller or any other Person thereunder; (e) escrow payments or other
similar payments with respect to the Mortgage Loans and any amounts actually
collected by Seller or any other Person with respect thereto; and (f) all
accounts and other rights to payment related to the Mortgage Loans.

 

“Submission Package”: A Conduit Submission Package, a Dry
Submission Package or a MBS Swap Submission Package, as applicable.

 

13

 

“Subsidiary”:  With
respect to any Person, any corporation, partnership or other entity of which at
least a majority of the securities or other ownership interests having by the
terms thereof ordinary voting power to elect a majority of the board of directors
or other persons performing similar functions of such corporation, partnership
or other entity (irrespective of whether or not at the time securities or other
ownership interests of any other class or classes of such corporation,
partnership or other entity shall have or might have voting power by reason of
the happening of any contingency) is at the time directly or indirectly owned
or controlled by such Person or one or more Subsidiaries of such Person or by
such Person and one or more Subsidiaries of such Person.

 

“Successor Servicer”:  An
entity designated by Purchaser, in conformity with Section 7, to replace
Seller as servicer for Purchaser.

 

“Supplemental Amount”: 
With respect to each Mortgage Loan, an amount equal to the Disbursement
Amount less the Purchase Price.

 

“Tangible Net Worth”:  As
of a particular date,

 

(i)                                     all
amounts which would be included under capital on a balance sheet of the Seller
at such date, determined in accordance with GAAP, less

 

(ii)                                  amounts
owing to Seller from Affiliates, and

 

(iii)                               intangible assets.

 

“Title Insurance Company”: 
A title insurance company acceptable to Purchaser in its sole
discretion.

 

“Total Indebtedness”: 
For any period, the aggregate Indebtedness of Seller during such period
less the amount of any nonspecific balance sheet reserves maintained in
accordance with GAAP.

 

“Transaction”:  Any sale
of a Mortgage Loan by Seller to Purchaser subject to an obligation of Seller to
repurchase such Mortgage Loan pursuant to a Funding Confirmation in accordance
with this Agreement.

 

“UBSRES Purchase Program”: 
Purchaser’s Conduit Funding Program or MBS Swap Funding Program as
applicable.

 

“UCC”:  The Uniform
Commercial Code, as enacted in each applicable state.

 

“Underlying Mortgaged Property” shall mean with respect to each
Co-op Loan, the underlying real property owned by the related residential
cooperative housing corporation.

 

“Underwriting Guidelines”: 
The underwriting guidelines delivered by Seller to Purchaser on or prior
to the date hereof and as may be supplemented from time to time thereafter, a
copy of which is attached hereto as Exhibit T.

 

14

 

“Warehouse Lender’’:  Any
lender providing financing to Seller in any fractional amount for the purpose of
originating or purchasing Mortgage Loans, which leader has a security interest
in such Mortgage Loans as collateral for the obligations of Seller to such
lender.

 

“Warehouse Lender’s Release”: 
A letter in the form of Exhibit M from a Warehouse Lender to
Purchaser, conditionally releasing all of Warehouse Lender’s right, title and
interest in certain Mortgage Loans identified therein upon receipt of payment
by Warehouse Lender.

 

“Warehouse Lender’s Wire Instructions”:  The wire instructions set forth in a letter
in the form of Exhibit O, from a Warehouse Lender who has an interest in
the Mortgage Loans to which such payment relates.

 

“Wet Funding”:  A Closing
Transaction initiated by the delivery by Seller, either via electronic or
facsimile transmission to Purchaser, of a Closing Loan Purchase Detail and a
pledge by Seller to Purchaser to deliver to Custodian a Dry Submission Package
or Conduit Submission Package by the Scheduled Collateral Receipt Date.

 

“Wet Mortgage Loan”:  A
Mortgage Loan for which Custodian on behalf of Purchaser, does not have
physical possession of the related complete Dry Submission Package and which
Seller has agreed to pledge to Purchaser all right, title and interest in, to
and under such Mortgage Loan, free and clear of all liens, pledges, charges,
encumbrances or security interests of any nature.

 

“Whole Loan Purchase Program”: 
A program pursuant to the terms of the Custodial Agreement and this
Agreement.

 

“Withdrawal/Deposit Notice”: 
A notice, substantially in the form of Exhibit D, delivered by
Seller to Purchaser, from time to time, in connection with withdrawals from and
deposits to the Cash Account,

 

“Wire Fee”:  For each
disbursement relating to a Closing Transaction, a fee payable to Purchaser by
Seller as set forth in the Funding Confirmation.

 

Section 2.                                            Proceeds
for Purchases of Mortgage Loans.

 

(a)                                  General
Procedures for Purchases of Mortgage Loans.

 

(1)                                  Pursuant
to either a Wet Funding or a Dry Funding, Purchaser may, in its sole
discretion, from time to time, purchase one or more Mortgage Loans from Seller
on a “servicing released” basis subject to an obligation of Seller to
repurchase such Mortgage Loans and subsequently to offer to sell such Mortgage
Loans to Purchaser pursuant to one of the UBSRES Purchase Programs.  Seller shall be deemed to make, and hereby
makes, for the benefit of Purchaser, as of the applicable dates specified in
Section 10, the representations and warranties set forth on
Schedule 1 hereto in respect of each such Mortgage Loan.

 

15

 

(2)                                  Notwithstanding
the satisfaction by Seller of the conditions specified in this Section, this is
not a committed facility, Purchaser is not obligated to purchase any Mortgage
Loan offered to it hereunder and the decision of Purchaser to purchase such
Mortgage Loan shall be at Purchaser’s sole discretion.  In the event that Purchaser elects to reject
a Mortgage Loan offered by Seller for purchase by Purchaser in a Wet Funding or
a Dry Funding for any reason and/or does not transmit the Disbursement Amount,
any Dry Submission Package delivered to Custodian in anticipation of such
purchase shall be returned by Custodian in accordance with the terms of the
Custodial Agreement.

 

(b)                                 Specific
Procedures for Purchases of Mortgage Loans related to Wet Fundings.

 

(1) Prior to Purchaser’s election to purchase any
Mortgage Loan pursuant to a Wet Funding, Purchaser shall have received from
Seller (i) a Closing Loan Purchase Detail in electronic format and
(ii) a Request to Purchase, in the form attached hereto as Exhibit Y,
signed by an Authorized Signatory of the Seller, and (iii) evidence that
the Seller’s Cash Account Balance is not less than the sum of the Supplemental
Amount plus the Wire Fee.  The terms and
conditions of each such purchase shall be set forth in this Agreement and in
the applicable Funding Confirmation.

 

(2) If Purchaser elects to purchase any Mortgage Loan pursuant to
a Wet Funding, Purchaser shall (i) withdraw the Supplemental Amount, if
any, and the Wire Fee from the Cash Account and (ii) pay the Disbursement
Amount for such Mortgage Loans to the Escrow Agent by wire transfer of
immediately available funds in accordance with the Escrow Agent Standing Wire
Instructions.

 

(3) Prior to payment of the Disbursement Amount by the Purchaser
to the Escrow Agent with respect to the initial Wet Funding, Purchaser has
obtained confirmation from the receiving bank that the information pertaining
to it on the Escrow Agent Standing Wire Instructions is accurate.

 

(4) With respect to each Wet Funding, simultaneously with the
payment by Purchaser of the Disbursement Amount for a Mortgage Loan in
accordance with the Escrow Agent Standing Wire Instructions, (i) Seller
hereby conveys to Purchaser all of Seller’s right, title and interest in, to
and under such Mortgage Loan (including, without limitation, Servicing Rights
with respect thereto), free and clear of all liens, pledges, charges,
encumbrances or security interests of any nature, and (ii) Seller hereby
covenants to cause to occur a Collateral Receipt by the Scheduled Collateral
Receipt Date and to provide Purchaser with a Conversion Loan Purchase Detail
for any Collateral Receipt relating to a Conduit Submission Package.

 

(5)   With respect to each Wet Funding, if
by the Scheduled Collateral Receipt Date (i) a Collateral Receipt has
occurred and (ii) Seller is not in breach of this Agreement, the
Electronic Tracking Agreement or the Custodial

 

16

 

Agreement then
(a) with respect to any Collateral Receipt containing a Dry Submission
Package, a Collateral Receipt Adjustment will occur and (b) with respect
to any Collateral Receipt containing a Conduit Submission Package a Repurchase
will occur.  If a Collateral Receipt
does not occur by the Scheduled Collateral Receipt Date Purchaser may elect a
remedy pursuant to Section 7 including, without limitation, the
application of an Incremental Pass-Through Rate.

 

(c)                                  Specific
Procedures for Purchases of Mortgage Loans related to Dry Fundings structured
as Closing Transactions.

 

(1)   Prior to Purchaser’s election to
purchase any Mortgage Loan pursuant to a Dry Funding structured as a Closing
Transaction, Purchaser shall have received from Seller (i) a Closing Loan
Purchase Detail in electronic format, (ii) a Request to Purchase, in the
form attached hereto as Exhibit Y, signed by an Authorized Signatory of
the Seller, (iii) a MERS Report reflecting the Purchaser as Investor or
Interim Funder for each MERS Designated Loan, (iv) evidence that the
Seller’s Cash Account Balance is not less than the sum of the Supplemental
Amount plus the Wire Fee and (v) evidence that Custodian has received all
applicable documents required by Section 2 of the Custodial Agreement. The
terms and conditions of each such purchase shall be set forth in this Agreement
and in the applicable Funding Confirmation.

 

(2)   If Purchaser elects to purchase any
Mortgage Loan pursuant to a Dry Funding structured as a Closing Transaction,
Purchaser shall (i) withdraw the Supplemental Amount, if any, and the Wire
Fee from the Cash Account and (ii) pay the Disbursement Amount for such
Mortgage Loans to the Escrow Agent by wire transfer of immediately available
funds in accordance with the Escrow Agent Standing Wire Instructions.

 

(3) Prior to payment of the Disbursement Amount by the Purchaser
to the Escrow Agent with respect to the initial Dry Funding, Purchaser has
obtained confirmation from the receiving bank that the information pertaining
to it on the Escrow Agent Standing Wire Instructions is accurate.

 

(4) With respect to each Dry Funding structured as a Closing
Transaction, simultaneously with the payment by Purchaser of the Disbursement
Amount for a Mortgage Loan in accordance with the Escrow Agent Standing Wire
Instructions, Seller hereby conveys to Purchaser all of Seller’s right, title
and interest in, to and under such Mortgage Loan (including, without
limitation, Servicing Rights with respect thereto), free and clear of all
liens, pledges, charges, encumbrances or security interests of any nature.

 

(5) With respect to each Dry Funding structured as a Closing
Transaction, if a Repurchase has not occurred by the Scheduled Repurchase Date
and if Seller has not repurchased the related Mortgage Loan(s), Purchaser may
elect a remedy

 

17

 

pursuant to
Section 7 including, without limitation, the application of an Incremental
Pass-Through Rate.

 

(d)                                 Specific
Procedures for Purchases of Mortgage Loans related to Dry Fundings structured
as Rewarehousing Transactions.

 

(1) Prior to Purchaser’s election to purchase any Mortgage Loan
pursuant to a Dry Funding structured as a Rewarehousing Transaction, Purchaser
shall have received from Seller (i) a Rewarehousing Loan Purchase Detail
in electronic format and (ii) a Request to Purchase, in the form attached
hereto as Exhibit Y, signed by an Authorized Signatory of the Seller,
(iii) an original of a Warehouse Lender’s Release or Seller’s Release, as
applicable, (iv) a MERS Report reflecting the Purchaser as Investor or
Interim Funder for each MERS Designated Loan, (v) evidence that the
Seller’s Cash Account Balance is not less than the sum of the Supplemental
Amount plus the Wire Fee and (vi) evidence that the Custodian has received
all applicable documents required by Section 2 of the Custodial
Agreement.  The terms and conditions of
each such purchase shall be set forth in this Agreement and in the applicable
Funding Confirmation.

 

(2) If Purchaser elects to purchase any Mortgage Loan pursuant to
a Dry Funding structured as a Rewarehousing Transaction, Purchaser shall
(i) withdraw the Supplemental Amount and the Wire Fee, in each case if
any, from the Cash Account and (ii) pay the Disbursement Amount for such
Mortgage Loans to the Warehouse Lender or Seller, as applicable, by wire
transfer of immediately available funds in accordance with the Warehouse
Lender’s Wire Instructions or the Seller’s Wire Instructions, as applicable.

 

(3) With respect to each Dry Funding structured as a Rewarehousing
Transaction, simultaneously with the payment by Purchaser of the Disbursement
Amount for a Mortgage Loan, in accordance with the Warehouse Lender’s Wire
Instructions or Seller’s Wire Instructions, as applicable, Seller hereby
conveys to Purchaser all of Seller’s right, title and interest in, to and under
such Mortgage Loan (including, without limitation, Servicing Rights with
respect thereto), free and clear of all liens, pledges, charges, encumbrances
or security interests of any nature.

 

(4) With respect to each Dry Funding structured as a Rewarehousing
Transaction, if a Repurchase has not occurred by the Scheduled Repurchase Date
and if Seller has not repurchased the related Mortgage Loan(s), Purchaser may
elect a remedy pursuant to Section 7 including the application of an
Incremental Pass-Through Rate.

 

Section 3.                                            Procedure
for Repurchases of Mortgage Loans.

 

(a)                                  Prior
to Seller’s repurchase of any Mortgage Loan that Seller intends to subsequently
offer for sale to Purchaser under the Conduit Funding Program and at least five
Business Days prior to Seller’s repurchase of any Mortgage Loan that Seller
intends to offer for

 

18

 

sale to Purchaser under
the MBS Swap Funding Program, all agreements related to the applicable UBSRES
Purchase Program must be executed by the Seller, the Purchaser and where
applicable the Custodian, and all requirements of such agreements must be
satisfied as a condition precedent to the following:

 

(i)                                     For
Mortgage Loans that Seller intends to repurchase and offer to Purchaser under
the Conduit Purchase Program, the following must occur on or before the
Scheduled Repurchase Date:

 

(1) Seller shall transmit electronically a Conversion Loan
Purchase Detail containing all information set forth on Exhibit C hereto
to Purchaser and Custodian shall have received all applicable documents
required by Section 2 of the Custodial Agreement to be in a Conduit
Submission Package;

 

(2) Seller shall remit the Repurchase Price to Purchaser and Purchaser
shall assign, transfer and convey to Seller all of Purchaser’s right, title and
interest in, to and under such Mortgage Loan, free and clear of all liens,
pledges, charges, claims, encumbrances or security interests of any nature; and

 

(3) Purchaser shall remit the Purchase Price to Seller pursuant
to, and to the extent provided for under, the terms of the Conduit Funding
Program and Seller shall assign, transfer and convey to Purchaser pursuant to
the applicable UBSRES Purchase Program all of Seller’s right, title and
interest in, to and under such Mortgage Loan, free and clear of all liens,
pledges, charges, claims, encumbrances or security interests of any nature.

 

The payment of
funds pursuant to clauses (2) and (3) above shall be netted.

 

(ii)                                  For
Mortgage Loans that Seller intends to repurchase and subsequently offer for
sale to Purchaser under the MBS Swap Funding Program the following must occur
on or before the Scheduled Repayment Date:

 

(1) Seller shall transmit to Purchaser, via a facsimile transmission,
the applicable MBS Swap Shipment Documents at least five (5) Business Days
before the Scheduled Repurchase Date;

 

(2) Purchaser shall deliver to the Custodian a Request for
Mortgage Loan Shipment setting for the Mortgage Loans to be shipped and the
location to which such Mortgage Loans shall be delivered via overnight courier;

 

(3) Seller shall deliver to Purchaser, via overnight courier, the
related MBS Swap Submission Package;

 

(4) Upon Purchaser’s review of the MBS Swap Submission Package and
election to purchase such Mortgage Loans, Seller shall remit the Repurchase
Price to Purchaser and Purchaser shall assign, transfer and convey to Seller
all of Purchaser’s right, title and interest in, to and under such Mortgage
Loan, free and

 

19

 

clear of all
liens, pledges, charges, claims, encumbrances or security interests of any
nature; and

 

(5) Purchaser shall remit the purchase price to Seller pursuant
to, and to the extent provided for under, the terms of the MBS Swap Purchase
Program and Seller shall assign, transfer and convey to Purchaser pursuant to
the UBSRES Purchase Program all of Seller’s right, title and interest in, to
and under such Mortgage Loan, free and clear of all liens, pledges, charges,
claims, encumbrances or security interests of any nature.

 

The payment of
funds pursuant to clauses (4) and (5) above shall be netted.

 

(b)                                 With
respect to any Wet Mortgage Loan or Dry Mortgage Loan, if Seller has provided
Purchaser with an MBS Swap Funding Program Selection Notice and Seller,
subsequent to such delivery and subsequent to the Scheduled Repurchase Date for
such Mortgage Loan, provides Purchaser with a Conversion Loan Purchase Detail
and a corresponding Conduit Submission Package, then Purchaser may elect a
remedy pursuant to Section 7 and may retroactively apply an Incremental
Pass-Through Rate for such Mortgage Loan for the period from the Scheduled
Repurchase Date through one day prior to the Repurchase Date.

 

(c)                                  With
respect to each Mortgage Loan, on either the Scheduled Collateral Receipt Date
or the Scheduled Repurchase Date, if Seller has not satisfied the requirements
of this Agreement or Purchaser has elected not to purchase such Mortgage Loan:

 

(i)                                     the
Pass-Through Rate shall increase by the Incremental Pass-Through Rate;

 

(ii)                                  the
Seller shall remit the Repurchase Price to Purchaser and Purchaser shall
assign, transfer and convey to Seller all of Purchaser’s right, title and
interest in, to and under such Mortgage Loan, free and clear of all liens,
pledges, charges, claims, encumbrances or security interests of any nature; and

 

(iii)                               upon
receipt of the Repurchase Price and Seller’s Delivery Instructions from Seller,
Purchaser shall direct Custodian to deliver the Dry Submission Package or
Conduit Submission Package related to such Mortgage Loan pursuant to the
Seller’s Delivery Instructions.

 

Section 4.                                            Terms
of Each Transaction.

 

(a)                                  The
obligations of the parties hereto shall, with respect to each Transaction,
begin on a Purchase Date and terminate on the Repurchase Date or on the
satisfaction by Seller of its obligations pursuant to Section 7.

 

(b)                                 The
terms and conditions of each Transaction, including, without limitation, the
Purchase Date, the Scheduled Repurchase Date, the Mortgage Loan subject
thereto, the Purchase Price, the Pass-Through Rate, the Incremental
Pass-Through Rate, the Scheduled Collateral Receipt Date for Wet Fundings only,
the Custodial Fee and, if applicable,

 

20

 

the Wire Fee, shall be
set forth in the related Funding Confirmation. 
Each Funding Confirmation shall be deemed to be controlling as to the
related terms and provisions of the purchase of a Mortgage Loan, absent manifest
error, without regard to any other oral or written communication between
Purchaser and Seller with respect to the purchase of such Mortgage Loan.  With respect to the purchase or repurchase
of a Mortgage Loan, in the event of any conflict between the terms and the
provisions of this Agreement and the terms and provisions of the related
Funding Confirmation, the terms and provisions of the related Funding
Confirmation will prevail over the terms and provisions of this Agreement.

 

Section 5.                                            Cash
Account.

 

(a)                                  Seller
hereby authorizes and directs Purchaser to create the Cash Account.  The Cash Account shall be held by Purchaser
for Seller subject to the terms and conditions of this Agreement.  Purchaser shall notify Seller, via
electronic or facsimile transmission, of the Cash Account Balance on each
Business Day when the Cash Account Balance is greater than zero and on each
Business Day on which a Transaction occurs hereunder.

 

(b)                                 Purchaser
shall credit the Cash Account for (i) any deposits therein by Seller upon
Seller’s written direction pursuant to a Withdrawal/Deposit Notice,
(ii) any amounts due Seller and payable by Purchaser under any UBSRES
Purchase Program to the extent not otherwise netted as described in
Section 3 of this Agreement, (iii) any Supplemental Amount for any
Mortgage Loan upon the refunding to Purchaser of the Disbursement Amount for
such Mortgage Loan by the Escrow Agent upon any failure to apply the
Disbursement Amount in connection with the proposed funding of a Mortgage Loan,
(iv) any credit pursuant to a Cash Account Adjustment, (v) any Cash
Account Interest Accruals and (vi) any deposits by Seller pursuant to
Section 7 hereof.

 

(c)                                  Purchaser
shall debit the Cash Account for (i) any withdrawals therefrom by Seller
upon Seller’s written direction pursuant to a Withdrawal/Deposit Notice,
(ii) any amounts due Purchaser and payable by Seller under any UBSRES
Purchase Program, (iii) the Supplemental Amount for any Mortgage Loan upon
payment of the Disbursement Amount for such Mortgage Loan to the Escrow Agent
in accordance with Section 2(b)(2), Section 2(c)(1) and
Section 2(d)(2), (iv) any debit pursuant to a Cash Account Adjustment
and (v) any Wire Fees.

 

(d)                                 Upon
termination of this Agreement and payment in full of all obligations owing by
Seller hereunder, under the Custodial Agreement and under the Electronic
Tracking Agreement, Purchaser shall remit to Seller the Cash Account Balance.

 

Section 6.                                            Servicing
of the Mortgage Loans.

 

(a)                                  It
is expressly acknowledged that the Servicing Rights relating to each Mortgage Loan
purchased by Purchaser hereunder have been sold, assigned, and transferred by
Seller to Purchaser along with such Mortgage Loan.  Seller shall service and administer each Mortgage Loan on behalf
of Purchaser on an interim basis in accordance with accepted and prudent
mortgage loan servicing standards and procedures generally accepted in the
mortgage banking industry for the same type of mortgage loans as the Mortgage
Loans and in a manner at

 

21

 

least equal in quality to the servicing the Seller provides for
mortgage loans which it owns, provided that Seller shall at all times comply
with applicable law and the requirements of any applicable insurer or guarantor
so that the insurance and any applicable guarantee in respect of any Mortgage
Loan is not voided or reduced.  Seller
shall at all times maintain accurate and complete records of its servicing of
each Mortgage Loan, and Purchaser may, at any time during Seller’s business
hours, on reasonable notice, examine and make copies of such records.  On the 2nd day of each calendar
month, or at any other time upon Purchaser’s request Seller shall deliver to
Purchaser reports regarding the status of each Mortgage Loan in accordance with
Section 11(o) and Section 11(p), which shall include, with respect to any MERS
Designated Mortgage Loan, MERS Reports, and any circumstances that could
materially adversely affect any such Mortgage Loan, Purchaser’s ownership of
any such Mortgage Loan or the collateral securing any such Mortgage Loan.  The Seller agrees and acknowledges that
Purchaser may, at any time, terminate the servicing of the Mortgage Loans by
Seller and transfer servicing to another Person on such date as Purchaser may
determine in its sole discretion.  In
the event that anything in this Agreement is interpreted as constituting one or
more interim servicing contracts, each such servicing contract shall terminate
automatically upon the earliest of (i) an Event of Default, (ii) the repurchase
of a Mortgage Loan by the Seller or (iii) the Purchaser’s notice to Seller
directing Seller to transfer servicing (provided, Seller’s obligations as set
forth herein to cooperate in the transfer of such servicing shall not terminate
until such servicing has actually been transferred in full).

 

(b)                                 Within
five Business Days of notice from Purchaser, or immediately upon notice if an
Event of Default has occurred:

 

(i)                                     Seller
shall establish and maintain a Custodial Account entitled “MortgageIT, Inc., in
trust for UBS Warburg Real Estate Securities Inc. and its assignees under the
Amended and Restated Mortgage Loan Repurchase Agreement dated January 10,
2003” and shall promptly deposit into such Custodial Account, in the form
received with any necessary endorsements, all collections received in respect
of each Mortgage Loan that are payable to Purchaser as the owner of each such
Mortgage Loan; and

 

(ii)                                  at
the Purchaser’s sole option, upon written notice from the Purchaser, the Seller
shall transfer servicing of the Mortgage Loans to a successor servicer
designated by the Purchaser.

 

(c)                                  Amounts
deposited in the Custodial Account with respect to any Mortgage Loan shall be
held in trust for Purchaser as the owner of such Mortgage Loan and shall be
released only as follows:

 

(i)                                     All
amounts deposited in the Custodial Account shall be paid to Seller upon the
repurchase by Seller of the related Mortgage Loans from Purchaser if, and to
the extent that, the Repurchase Prices and all other amounts due and payable to
Purchaser hereunder with respect to such Mortgage Loans have been paid.  The amounts paid to Seller (if any) pursuant
to this Section 6(c)(i) shall constitute Seller’s sole compensation for
servicing the Mortgage Loans as provided in this Section 6.

 

22

 

(ii)                                  If
a Successor Servicer is appointed by Purchaser (either under the circumstances
set forth in clause (b)(ii) above, Section 7 or otherwise), or if an Event
of Default has occurred, all amounts deposited in the Custodial Account shall
be paid to Purchaser promptly upon such delivery.

 

(iii)                               During
the period that Seller acts as Servicer, all amounts deposited in the Custodial
Account shall be released only in accordance with Purchaser’s written
instructions.

 

(d)                                 In
the event the Seller or its Affiliate is servicing the Mortgage Loans, the
Seller shall permit the Purchaser to inspect the Seller’s or its Affiliate’s
servicing facilities, as the case may be, for the purpose of satisfying the
Purchaser that the Seller or its Affiliate, as the case may be, has the ability
to service the Mortgage Loans as provided in this Agreement.

 

(e)                                  If
the servicer of the Mortgage Loans is Seller or the Servicer is an Affiliate of
Seller, Seller shall provide to Purchaser a letter from Seller or such
Affiliate, as the case may be, to the effect that upon 1 day’s notice from
Purchaser or immediately upon the occurrence of an Event of Default, Servicer’s
rights and obligations to service the Mortgage Loans shall terminate
immediately, without any further notice or action by Purchaser and Servicer
shall transfer servicing to Purchaser’s designee, at no cost or expense to the
Purchaser, it being agreed that the Seller will pay any and all fees required
to terminate the Servicing Agreement and to effectuate the transfer of
servicing to the designee of the Purchaser.

 

Section 7.                                            Remedies;
Margin Deficits.

 

(a)                                  Upon
the occurrence of an Event of Default, at the option of Purchaser exercised by
written notice to Seller (which option shall be deemed to have been exercised
even if no notice is given, immediately upon the occurrence of an Act of
Insolvency with respect to Seller or an Affiliate of Seller), the Scheduled
Repurchase Date for each Transaction hereunder shall be, deemed immediately to
occur and, upon exercise of such option, (i) Seller’s obligations
hereunder to repurchase all Mortgage Loans shall thereupon become immediately
due and payable, (ii) the Pass-Through Rate applicable to each Mortgage
Loan shall increase by the Incremental Pass-Through Rate, (iii) all
amounts then or thereafter held in any Custodial Accounts and the Cash Account
shall be retained by Purchaser and applied to the aggregate unpaid Repurchase
Prices owed by Seller and to any other amounts owing by Seller hereunder or
under the Custodial Agreement and (iv) Purchaser may at any time on the
Business Day following notice to Seller (which notice may be the notice given
above of an Event of Default), (A) immediately sell, without demand or
further notice of any kind, at a public or private sale and at such price or
prices as Purchaser may deem satisfactory, any or all the Mortgage Loans and
apply the proceeds thereof (net of any expenses of sale) to the aggregate
unpaid Repurchase Prices and any other amounts owing by Seller hereunder or
under the Custodial Agreement or (B) in its sole discretion elect, in lieu
of selling all or a portion of such Mortgage Loans, to give Seller credit for
such Mortgage Loans in an amount equal to the price therefor on such date,
obtained from a generally recognized source or the most recent closing bid
quotation  from such a source, against the aggregate unpaid Repurchase
Prices and any other amounts owing by Seller hereunder or under the Custodial
Agreement, and in either case upon the determination and receipt by Purchaser
of all such amounts owing by Seller (including, without limitation, any

 

23

 

unpaid fees, expenses,
legal fees and expenses of Purchaser’s counsel or other amounts owing to
Purchaser under this Agreement, the Electronic Tracking Agreement or the
Custodial Agreement), Purchaser shall transfer any remaining portion of the
Mortgage Loans and proceeds thereof to either (1) Seller, if in
Purchaser’s reasonable judgment Seller is legally entitled thereto,
(2) such other entity as is in Purchaser’s reasonable judgment legally
entitled thereto or (3) if Purchaser cannot determine in its judgment the
entity entitled thereto, a court of competent jurisdiction; provided that
Seller shall be liable for any deficiency if the proceeds of any sale or other
disposition of the Mortgage Loans and any amounts applied from the Custodial
Account and the Cash Account are insufficient to pay all amounts to which
Purchaser is entitled hereunder.

 

(b)                                 If
any Mortgage Loan becomes a Defective Mortgage Loan prior to the Repurchase
Date, the Pass-Through Rate applicable to such Defective Mortgage Loan shall
increase by the Incremental Pass-Through Rate, and Purchaser, at its election,
may immediately accelerate the Scheduled Repurchase Date and require that
Seller, upon receipt of such election, immediately repurchase such Defective
Mortgage Loan by remitting to Purchaser (in immediately available funds in
accordance with Purchaser’s Wire Instructions) the Repurchase Price for such
Defective Mortgage Loan.

 

(c)                                  If
Seller fails to comply with its obligations in the manner described in
Section 7(b) or under the Electronic Tracking Agreement or if the
Purchaser delivers notice to Seller pursuant to Section 6(a) or 6(b) hereof
Seller’s rights and obligations to interim service Mortgage Loans, as provided
in this Agreement, shall terminate.  If
any such event occurs, Seller’s rights and obligations to service the Mortgage
Loans, as provided in this Agreement, shall terminate immediately, without any
further notice or action by Purchaser. 
Upon any such termination, Purchaser is hereby authorized and empowered
to sell and transfer such rights to service the Mortgage Loans for such price
and on such terms and conditions as Purchaser shall determine in its sole
discretion.  Seller does not have any
right to and shall not attempt to sell or transfer the Servicing Rights or any
rights incident thereto without the prior consent of the Purchaser, which may
be withheld in Purchaser’s sole discretion. 
In the event of any servicing transfer, Seller shall perform all acts
and take all action so (i) that the Mortgage Loans and all files and
documents relating to such Mortgage Loans held by Seller, together with all
escrow amounts relating to such Mortgage Loans, are delivered to a Successor
Servicer, (ii) all applicable laws and regulations relating to the
servicing of the Mortgage Loans and any transfer of the such servicing with
respect thereto are complied with in all respects, including, without
limitation all provisions of RESPA, the Truth in Lending Act and other
applicable laws and (iii) with respect to all MERS Designated Mortgage
Loans, the “Servicer” and all other relevant fields in the MERS® System are
modified to reflect the Successor Servicer, where applicable.  To the extent that the approval of any other
insurer or guarantor is required for any such sale or transfer, Seller shall
fully cooperate with Purchaser to obtain such approval.  Upon exercise, by Purchaser of its remedies
under this Section 7(c), Seller hereby authorizes Purchaser to receive all
amounts paid by any purchaser of such rights to service the Mortgage Loans and
to remit such amounts to Seller subject to Purchaser’s rights of set-off under
this Agreement.

 

(d)                                 Each
Mortgage Loan required to be delivered to a Successor Servicer by
Section 7(c) shall be delivered free of any Servicing Rights in favor of
Seller and free of any title, interest, lien, encumbrance or claim of any kind
of Seller, and Seller shall deliver or cause

 

24

 

to be delivered all files
and documents relating to each Mortgage Loan held by Seller to a Successor
Servicer.  Seller shall promptly take
such actions and furnish to Purchaser such documents that Purchaser deems
necessary or appropriate to enable Purchaser to cure any defect in each such
Mortgage Loan or to enforce such Mortgage Loans, as appropriate.

 

(e)                                  Seller
agrees to indemnify and hold Purchaser and its assigns harmless for and against
all Losses resulting from or relating to any Event of Default.

 

(f)                                    No
election by Purchaser pursuant to this Section 7 shall relieve Seller of
responsibility or liability for any breach of or under this Agreement.

 

(g)                                 Seller
and its Affiliates hereby grant Purchaser and its Affiliates a right of
set-off, to secure the payment of any amounts that may be due and payable to
Purchaser from Seller, such right to be upon any and all monies or other
property of Seller and its Affiliates held or received by Purchaser and its
Affiliates, or due and owing from Purchaser and its Affiliates to Seller and
its Affiliates.

 

(h)                                 If
at any time the aggregate Asset Value of the Mortgage Loans is less than the
aggregate Purchase Price for all such Mortgage Loans (a “Margin Deficit”),
then Purchaser may by notice to Seller (as such notice is more particularly set
forth below, a “Margin Deficit Notice”), accelerate the Scheduled
Repurchase Date for the Mortgage Loans or require Seller to deposit into the
Cash Account an amount (which amount may be deposited in the form of United
States treasury obligations approved by the Purchaser) equal to the Margin
Deficit so that the aggregate Asset Value of the Mortgage Loans, including any
such amounts deposited into the Cash Account, will thereupon equal or exceed
the aggregate Asset Value.  If Purchaser
delivers a Margin Deficit Notice to Seller on or prior to 10:00 a.m.
(New York City time) on any Business Day, then Seller shall repurchase the
specified Mortgage Loans or deposit an amount equal to the Margin Deficit into
the Cash Account no later than 5:00 p.m. (New York City time) on such
Business Day.  In the event Purchaser
delivers a Margin Deficit Notice to Seller after 10:00 a.m. (New York
City time) on any Business Day, then such Margin Deficit Notice shall be deemed
to have been delivered on the following Business Day and Seller shall be
required to repurchase the specified Mortgage Loans or deposit an amount equal
to the Margin Deficit into the Cash Account no later than 5:00 p.m.
(New York City time) on such subsequent Business Day.

 

25

 

Section 8.                                            Transfer
of Mortgage Loan by Purchaser. 
Purchaser may, in its sole discretion, grant or assign a security
interest in any Mortgage Loan sold by Seller hereunder and all rights of
Purchaser under this Agreement, the Electronic Tracking Agreement and/or the
Custodial Agreement, in respect of such Mortgage Loan to Assignee, subject only
to an obligation on the part of Assignee to deliver each such Mortgage Loan to
Purchaser to permit Purchaser or its designee to make delivery thereof to
Seller on the Repurchase Date.  It is
anticipated that such assignment to Assignee will be made by Purchaser, and
Seller hereby irrevocably consents to such assignment.  No notice of such assignment shall be given
by Purchaser to Seller.  Assignment by
Purchaser of the Mortgage Loans as provided in this Section 8 shall not
release Purchaser from its obligations otherwise under this Agreement.

 

Without limitation
of the foregoing, an assignment of a Mortgage Loan to Assignee, as described in
this Section 8, shall be effective upon delivery to Assignee of a Dry
Submission Package.

 

Section 9.                                            Record
Title to Mortgage Loans; Intent of Parties; Security Interest.

 

(a)                                  From
and after the delivery of the related Submission Package, and subject to the
remedies of Purchaser set forth in Section 7, Seller shall remain the
named payee or endorsee of each Mortgage Note and the mortgagee or assignee of
record of each Mortgage (except with respect to a MERS Designated Mortgage
Loan) in trust for the benefit of Purchaser, for the sole purpose of
facilitating the servicing of such Mortgage Loan.

 

(b)                                 Seller
shall maintain a complete set of books and records for each Mortgage Loan which
shall be clearly marked to reflect the ownership interest in each Mortgage Loan
of Purchaser and with respect to each MERS Designated Mortgage Loan, Seller
shall designate the Purchaser as the Investor and Interim Funder on the MERS®
System.

 

(c)                                  Purchaser
and Seller confirm that the Transactions contemplated herein are intended to be
sales of the Mortgage Loans by Seller to Purchaser rather than borrowings
secured by the Mortgage Loans.  In the
event, for any reason, any Transaction is construed by any court or regulatory
authority as a borrowing rather than as a sale, Seller and Purchaser intend
that Purchaser or Assignee, as the case may be, shall have a perfected first
priority security interest in the Collateral, free and clear of adverse claims.  In such case, Seller shall be deemed to have
hereby granted to Purchaser or Assignee, as the case may be, a first priority
security interest in and lien upon the Collateral, free and clear of adverse
claims.  In such event, this Agreement
shall constitute a security agreement, the Custodian shall be deemed to be an
independent custodian for purposes of perfection of the security interest
granted to Purchaser or Assignee, as the case may be, and Purchaser or
Assignee, as the case may be, shall have all of the rights of a secured party
under applicable law.  Seller shall, not
later than the date of the first purchase of a Mortgage Loan by Purchaser under
this Agreement, deliver to Purchaser a UCC-1 Financing Statement, executed by
Seller, containing a description of collateral in the form attached hereto in
Exhibit I.

 

26

 

Section 10.                                      Representations
and Warranties.

 

(a)                                  Seller
hereby represents and warrants to Purchaser as of the date hereof and as of the
date of each delivery of a Submission Package that:

 

(i)                                     Seller
is duly organized, validly existing and in good standing under the laws of the
state of its organization or of the United States of America and has all
licenses necessary to carry on its business as now being conducted and is
licensed, qualified and in good standing in the state where the Mortgaged
Property is located if the laws of such state require licensing or
qualification in order to conduct business of the type conducted by Seller.  Seller has all requisite power and authority
(including, if applicable, corporate power) to execute and deliver this
Agreement, the Electronic Tracking Agreement and the Custodial Agreement and to
perform in accordance herewith and therewith; the execution, delivery and
performance of this Agreement, the Electronic Tracking Agreement and the
Custodial Agreement (including all instruments of transfer to be delivered
pursuant to this Agreement, the Electronic Tracking Agreement or the Custodial
Agreement) by Seller and the consummation of the transactions contemplated
hereby and thereby have been duly and validly authorized.  Each of this Agreement, the Electronic
Tracking Agreement and the Custodial Agreement evidences the valid, binding and
enforceable obligation of Seller and all requisite action (including, if
applicable, corporate action) has been taken by Seller to make this Agreement,
the Electronic Tracking Agreement and the Custodial Agreement valid and binding
upon Seller in accordance with its terms;

 

(ii)                                  No
approval of the transactions contemplated by this Agreement, the Electronic
Tracking Agreement or the Custodial Agreement from the OTS, the NCUA, the FDIC
or any similar federal or state regulatory authority having jurisdiction over
Seller is required, or if required, such approval has been obtained.  The transfers, assignments and conveyances
provided for herein and therein are not subject to the bulk transfer or any
similar statutory provisions in effect in any applicable jurisdiction;

 

(iii)                               The
consummation of the transactions contemplated by this Agreement, the Electronic
Tracking Agreement and the Custodial Agreement are in the ordinary course of
business of Seller and will not result in the breach of any term or provision
of the charter or by-laws of Seller or result in the breach of any term or
provision of, or conflict with or constitute a default under or result in the
acceleration of any obligation under, an agreement, indenture or loan or credit
agreement or other instrument to which Seller or its property is subject, or
result in the violation of any law, rule, regulation, order, judgement or
decree to which Seller or its property is subject;

 

(iv)                              This
Agreement, the Custodial Agreement, the Electronic Tracking Agreement and every
document to be executed by Seller pursuant hereto and thereto is and will be
valid, binding and a subsisting obligation of Seller, enforceable in accordance
with its respective terms.  No consents
or approvals are required to be obtained by Seller or its Parent Company for
the execution, delivery and performance of this Agreement, the Electronic
Tracking Agreement or the Custodial Agreement by Seller;

 

27

 

(v)                                 All
information relating to Seller that Seller has delivered or caused to be
delivered to Purchaser, including, but not limited to, all documents related to
this Agreement, the Electronic Tracking Agreement, the Custodial Agreement or
Seller’s financial statements, and all such information hereafter furnished by
Seller, does not and will not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made therein
or herein in light of the circumstances under which they were made, not
misleading.  Seller has disclosed in
writing any and all facts relating to Seller that materially and adversely
affect or may affect the business operations or financial condition of Seller
or the ability of Seller to perform its obligations under this Agreement, the
Electronic Tracking Agreement or the Custodial Agreement;

 

(vi)                              There
are no actions, suits or proceedings pending, or to the knowledge of Seller
threatened, including any claims for which an action, suit or proceeding has
not been commenced, against or affecting Seller or any of its assets in any
court or before any arbitrator or before any governmental commission, board,
bureau or other administrative agency that, in any such case, if adversely
determined, would have a material adverse effect on the financial condition or
business of Seller or the ability of Seller to perform under this Agreement,
the Electronic Tracking Agreement, each Funding Confirmation and the Custodial
Agreement;

 

(vii)                           Seller
and its Subsidiaries have filed all Federal income tax returns and all other
material tax returns that are required to be filed by them and have paid all
taxes due pursuant to such returns or pursuant to any assessment received by it
or any of its Subsidiaries, except for any such taxes as are being
appropriately contested in good faith by appropriate proceedings diligently
conducted and with respect to which adequate reserves have been provided.  The charges, accruals and reserves on the
books of Seller and its Subsidiaries in respect of taxes and other governmental
charges are, in the opinion of Seller, adequate;

 

(viii)                        Neither
Seller nor any of its Subsidiaries is an “investment company”, or a company
“controlled” by an “investment company”, within the meaning of the Investment
Company Act of 1940, as amended;

 

(ix)                                Upon
the filing of financing statements on Form UCC-1 naming Purchaser as “Secured
Party”, Seller as “Debtor” and describing the Mortgage Loans, in the
jurisdictions and recording offices listed on Exhibit V attached
hereto, the security interests granted hereunder in the Mortgage Loans will
constitute fully perfected security interests under the Uniform Commercial Code
in all right, title and interest of Seller in, to and under such Mortgage
Loans, which can be perfected by filing under the Uniform Commercial Code;

 

(x)                                   As
of the date hereof, and during the four months immediately preceding the
Effective Date, Seller’s chief executive office, is, and has been located at 33
Maiden Lane, New York, New York 10038. 
As of the date hereof, Seller’s jurisdiction of organization is New
York;

 

28

 

(xi)                                the
aggregate Tangible Net Worth of Seller is not less than $15,000,000;

 

(xii)                             Seller
(and each servicer) is approved by GNMA as an approved issuer, Fannie Mae as an
approved lender, Freddie Mac as an approved seller/servicer (as the case may
be) and by FHA as an approved mortgagee and by VA as an approved VA lender, in
each case in good standing (such collective approvals and conditions, “Agency
Approvals”), with no event having occurred or Seller (or any subservicer)
having any reason whatsoever to believe or suspect will occur prior to the
purchase of the Mortgage Loan by the related Agency, including without
limitation a change in insurance coverage which would either make Seller (or
any servicer) unable to comply with the eligibility requirements for
maintaining all such Agency Approvals or require notification to the relevant
Agency or  to HUD, FHA or VA.  Should Seller (or any servicer), for any
reason, cease to possess all such Agency Approvals, or should notification to
the relevant Agency or to HUD, FHA or VA be required, Seller shall so notify
Purchaser immediately in writing. 
Notwithstanding the preceding sentence, Seller shall take all necessary
action to maintain all of its (and each servicer’s) Agency Approvals at all
times during the term of this Agreement. 
Seller (and any servicer) has adequate financial standing, servicing
facilities, procedures and experienced personnel necessary for the sound
servicing of mortgage loans of the same types as may from time to time
constitute Mortgage Loans and in accordance with Accepted Servicing Practices;

 

(xiii)                          The
Custodian is an eligible custodian under the Agency Guide and Agency Program;

 

(xiv)                         As
of the date hereof, with respect to the Original Repurchase Agreement, no Event
of Default (as defined therein) has occurred and is continuing and the Seller
is not in default with respect to any of its obligations thereunder.

 

(b)                                 With
respect to each Mortgage Loan as of the related Purchase Date, Seller hereby
represents and warrants that the Mortgage Loan has been originated with 30 days
of the date such Mortgage Loan was first sold to Purchaser hereunder and Seller
hereby makes each representation, warranty and covenant set forth on
Schedule 1 hereto.

 

(c)                                  Seller
hereby represents and warrants to Purchaser as of the date hereof and as of
each Purchase Date, (i) with respect to the Escrow Agent Wire Instructions, the
Seller received such instructions on the letterhead of the Escrow Agent and
such instructions are true and correct and (ii) Seller has inserted the Closing
Instruction Letter Insert in each Closing Instruction Letter for all Wet
Fundings and Dry Fundings structured as Closing Transactions.

 

(d)                                 Seller
hereby represents and warrants to Purchaser as of the date hereof and as of
each Purchase Date, with respect to each Wet Funding or Dry Funding structured
as a Closing Transaction, an insured closing letter from each Escrow Agent that
is not a title insurance company is included in the Credit File and Seller
shall promptly, upon request of Purchaser, send to Purchaser (i) a copy of any
such insured closing letter and (ii) a complete list of all Escrow Agents
Seller has approved to act as an Escrow Agent.

 

29

 

The
representations and warranties of Seller in this Section 10 and
Schedule 1 hereto are unaffected by and supersede any provision in any
endorsement of any Mortgage Loan or in any assignment with respect to such Mortgage
Loan to the effect that such endorsement or assignment is without recourse or
without representation or warranty.

 

Section 11.                                      Covenants
of Seller.  Seller hereby covenants
and agrees with Purchaser as follows:

 

(a)                                  Seller
shall deliver to Purchaser; UBS Warburg Real Estate Securities Inc.,
1285 Avenue of the Americas, 11th Floor, New York,
New York 10019, Attention:  Peter
Coras and Gary Gartland:

 

(i)                                     Within
120 days after the end of each fiscal year of Seller, consolidated balance
sheets of Seller and its consolidated subsidiaries and the related consolidated
statements of income showing the financial condition of Seller and its
consolidated subsidiaries as of the close of such fiscal year, consolidated
statement of cash flows, as of the close of such fiscal year, setting forth, in
each case, in comparative form the corresponding figures for the preceding
year, all the foregoing consolidated financial statements to be reported on by,
and to carry the report (acceptable in form and content to Purchaser) of an
independent public accountant of national standing acceptable to Purchaser;

 

(ii)                                  Within
20 days after the end of each of the first eleven months of each fiscal year of
Seller, unaudited consolidated balance sheets and consolidated statements of income,
all to be in a form acceptable to Purchaser, showing the financial condition
and results of operation of Seller and its consolidated subsidiaries on a
consolidated basis as of the end of each such month and for the then elapsed
portion of the fiscal year, setting forth, in each case, in comparative form
the corresponding figures for the corresponding periods of the preceding fiscal
year, certified by a financial officer of Seller (acceptable to Purchaser) as
presenting fairly the financial position and results of operations of Seller
and its consolidated subsidiaries and as having been prepared in accordance
with generally accepted accounting principles consistently applied, in each
case, subject to normal year-end audit adjustments;

 

(iii)                               Promptly
upon receipt thereof, a copy of each other report submitted to Seller by its
independent public accountants in connection with any annual, interim or
special audit of Seller;

 

(iv)                              Promptly
upon becoming aware thereof, notice of (1) the commencement of, or any
determination in, any legal, judicial or regulatory proceedings, (2) any
dispute between Seller or its Parent Company and any governmental or regulatory
body, (3) any event or condition, which, in any case of (1) or (2), if
adversely determined, would have a material adverse effect on (A) the
validity or enforceability of this Agreement, (B) the financial condition
or business operations of Seller, or (C) the ability of Seller to fulfill
its obligations under this Agreement or (4) any material adverse change in
the business, operations, prospects or financial condition of Seller,
including, without limitation, an Act of Insolvency with respect to Seller or
any Affiliate of Seller;

 

30

 

(v)                                 Promptly
upon becoming available, copies of all financial statements, reports, notices
and proxy statements sent by its Parent Company, Seller or any of Seller’s
consolidated subsidiaries in a general mailing to their respective stockholders
and of all reports and other material (including copies of all registration
statements under the Securities Act of 1933, as amended) filed by any of them
with any securities exchange or with the Securities and Exchange Commission or
any governmental authority succeeding to any or all of the functions of said
Commission;

 

(vi)                              Promptly
upon becoming available, copies of any press releases issued by its Parent
Company or Seller and copies of any annual and quarterly financial reports and
any reports on Form H-(b)12 which its Parent Company or Seller may be required
to file with the OTS or the RTC or comparable reports which a Parent Company or
Seller may be required to file with the FDIC or any other federal banking
agency containing such financial statements and other information concerning
such Parent Company’s or Seller’s business and affairs as is required to be
included in such reports in accordance with the rules and regulations of the
OTS, the RTC, the FDIC or such other banking agency, as may be promulgated from
time to time;

 

(vii)                           Such
supplements to the aforementioned documents and such other information
regarding the operations, business, affairs and financial condition of its
Parent Company, Seller or any of Seller’s consolidated subsidiaries as
Purchaser may request;

 

(viii)                        Prior
to the date of any purchase of a Mortgage Loan by Purchaser hereunder, a copy
of (1) the articles of incorporation of Seller and any amendments thereto
certified by the Secretary of State of Seller’s state of incorporation,
(2) a copy of Seller’s by-laws, together with any amendments thereto,
(3) a copy of the resolutions adopted by Seller’s Board of Directors
authorizing Seller to enter into this Agreement, the Electronic Tracking
Agreement and the Custodial Agreement and authorizing one or more of Seller’s
officers to execute the documents related to this Agreement, the Electronic
Tracking Agreement and the Custodial Agreement, (4) a certificate of
incumbency and signature of each officer of Seller executing any document in
connection with this Agreement, the Electronic Tracking Agreement and the
Custodial Agreement; (5) a certificate reflecting each Authorized
Signatory of the Seller, in the form of Exhibit N hereto and (6) an
opinion of counsel to Seller, in the form of Exhibit U hereto;

 

(ix)                                A
Covenant Compliance Letter, substantially in the form of Exhibit X hereto,
within 20 days after the end of each of the first eleven fiscal months of each
fiscal year, within 60 days after the end of each of the first three fiscal
quarters of each fiscal year and within 120 days after the end of each fiscal
year;

 

(x)                                   On
or before the date hereof, a copy of an opinion of counsel to Seller,
substantially in the form of Exhibit U hereto.

 

(b)                                 Seller
will be solvent at all relevant times prior to, and will not be rendered
insolvent by, any sale of a Mortgage Loan to Purchaser.

 

31

 

(c)                                  Seller
will not sell any Mortgage Loan to Purchaser with any intent to hinder, delay
or defraud any of Seller’s creditors.

 

(d)                                 Seller
shall comply, in all material respects, with all laws, rules and regulations to
which it is or may become subject.

 

(e)                                  Seller
shall not move its chief executive office from the address referred to in
Section 10 or change its jurisdiction of organization unless it shall have
provided Purchaser thirty (30) days’ prior written notice of such change.

 

(f)                                    Seller
shall pay and discharge all taxes, assessments and governmental charges or
levies imposed on it or on its income or profits or on any of its Property
prior to the date on which penalties attach thereto, except for any such tax,
assessment, charge or levy the payment of which is being contested in good
faith and by proper proceedings and against which adequate reserves are being
maintained.

 

(g)                                 Seller
shall, upon request of Purchaser, promptly execute and deliver to Purchaser all
such other and further documents and instruments of transfer, conveyance and
assignment, and shall take such other action as Purchaser may require to more
effectively transfer, convey, assign to and vest in Purchaser and to put
Purchaser in possession of the property to be transferred, conveyed, assigned
and delivered hereunder and otherwise to carry out more effectively the intent
of the provisions under this Agreement.

 

(h)                                 Immediately
upon notice of a lien or any circumstance which could give rise to a lien on
the Mortgage Loans, Seller will defend the Mortgage Loans against, and will
take such other action as is necessary to remove, any lien, security interest
or claim on or to the Mortgage Loans (other than any security interest created
under this Repurchase Agreement), and Seller will defend the right, title and
interest of Purchaser in and to any of the Mortgage Loans against the claims
and demands of all persons whomsoever.

 

(i)                                     If
during the term of a Transaction, Seller gains possession of a Submission
Package that relates to the Transaction, Seller shall hold such Submission
Package in trust for Purchaser, immediately notify Purchaser of the specific
Submission Package being held by Seller and promptly deliver such Submission
Package via overnight courier in accordance with Purchaser’s instructions.

 

(j)                                     Seller
covenants and agrees to take all actions required of it in compliance with the
terms of the Electronic Tracking Agreement.

 

(k)                                  Seller
shall maintain a Tangible Net Worth which shall be not less than the greater of
(i) $15,000,000 measured on a quarterly basis (as at the end of each
month) and (ii) (A) 85% of the Tangible Net Worth of Seller at the
end of the most recently completed fiscal year of Seller plus (B) 90% of
capital contributions made during such fiscal year plus (C) 50% of
positive year to date net income.

 

(l)                                     [Reserved]

 

32

 

(m)                               Seller
shall not permit, for any period of three consecutive fiscal months (each such
period, a “Test Period”), Net Income for such Test Period, before income
taxes for such Test Period and distributions made during such Test Period, to
be less than $1.00.

 

(n)                                 Seller
shall, with respect to each Mortgage Loan, causes the paragraphs set forth on
Exhibit S hereto to be inserted into each closing letter or other similar
agreement with the Escrow Agent for such Mortgage Loan, and shall, upon the
request of Purchaser, fax a copy of such closing letter to Purchaser prior to
the closing of such Mortgage Loan.

 

(o)                                 Seller
shall provide Purchaser with a monthly report, which report shall include,
among other items, a summary of the Seller’s delinquency and loss experience
with respect to mortgage loans serviced by the Seller, any Servicer or any
designee of either, with respect to any MERS Designated Mortgage Loan, MERS
Reports, plus any such additional reports as Purchaser may reasonably request
with respect to the Seller’s or any Servicer’s servicing portfolio or pending
originations of mortgage loans. Seller shall not cause the Mortgage Loans to be
serviced by any servicer other than a servicer expressly approved in writing by
Purchaser.

 

(p)                                 On the second Business Day of each month, Seller
shall furnish to Purchaser or shall cause the Servicer to furnish to Purchaser,
a remittance report, in hard copy and electronic format acceptable to
Purchaser, containing information regarding funds collected during the prior
calendar month.  This report shall
contain the following information:

 

(i)                                     Mortgage Loan number;

 

(ii)                                  Note Rate;

 

(iii)                               Remittances
allocable to principal and interest;

 

(iv)                              Paid
through date;

 

(v)                                 Mortgage
Loan balance;

 

(vi)                              Delinquency
status;

 

(vii)                           Whether
the Mortgaged Property is in foreclosure or has become an real state owned
property;

 

(viii)                        Whether
any Mortgagor is the subject of any bankruptcy action; and

 

(ix)                                Any
other information that Purchaser may reasonably request.

 

Section 12.                                      Periodic
Due Diligence.  (a) Seller acknowledges
that Purchaser has the right to perform continuing due diligence reviews with
respect to the Mortgage Loans, for purposes of verifying compliance with the
representations, warranties and specifications made hereunder, or otherwise,
and Seller agrees that upon reasonable (but no less than one (1) Business
Day’s) prior notice to Seller, Purchaser or its authorized representatives will
be permitted during normal business hours to examine, inspect, and make copies
and extracts of, the

 

33

 

Mortgage Files and any
and all documents, records, agreements, instruments or information relating to
any Mortgage Loans in the possession or under the control of Seller and/or the
Custodian.  Seller shall make available
to Purchaser a knowledgeable financial or accounting officer for the purpose of
answering questions respecting the Mortgage Loans.  Without limiting the generality of the foregoing, Seller
acknowledges that Purchaser may purchase Mortgage Loans from Seller based
solely upon the information provided by Seller to Purchaser in the Closing Loan
Purchase Detail or Rewarehousing Loan Purchase Detail, as applicable, and the
representations, warranties and covenants contained herein, and that Purchaser,
at its option, has the right at any time to conduct a partial or complete due
diligence review on some or all of the Mortgage Loans purchased by Purchaser,
including without limitation ordering new credit reports and new appraisals on
the related Mortgaged Properties and otherwise re-generating the information
used to originate such Mortgage Loan. 
Purchaser may underwrite such Mortgage Loans itself or engage a mutually
agreed upon third party underwriter to perform such underwriting.  Seller agrees to cooperate with Purchaser
and any third party underwriter in connection with such underwriting,
including, but not limited to, providing Purchaser and any third party
underwriter with access to any and all documents, records, agreements,
underwriting reports, instruments or information relating to such Mortgage
Loans in the possession, or under the control, of Seller.  All such due diligence conducted in
accordance with this Section 12 shall be at the expense of Seller.

 

(b)                                 Without
limiting the generality of the foregoing, Seller acknowledges that upon demand
by Purchaser, Seller shall deliver within five Business Days copies of the
Closing Instruction Letters reflecting the addition of the Closing Instruction
Letter Insert for all Wet Fundings and Dry Fundings structured as Closing
Transactions closed prior to the date of such demand.  Seller acknowledges Purchaser is authorized to contact any Escrow
Agent or any other person who has delivered a Closing Instruction Letter in connection
with any Wet Funding or Dry Funding in order to confirm the information
contained in such Closing Instruction Letter.

 

Section 13.                                      Third
Party Servicing.  If the Mortgage
Loans are serviced by a third party servicer (such third party servicer, the “Servicer”),
Seller (i) shall provide a copy of the servicing agreement to Purchaser,
which shall be in form and substance acceptable to Purchaser (the “Servicing
Agreement”); (ii) shall provide a Servicer Notice to the Servicer
substantially in the form of Exhibit W hereto; and
(iii) hereby irrevocably assigns to Purchaser and Purchaser’s successors
and assigns all right, title, interest of Seller in, to and under, and the
benefits of, any Servicing Agreement with respect to the Mortgage Loans.  Any successor to the Servicer shall be
approved in writing by Purchaser prior to such successor’s assumption of
servicing obligations with respect to the Mortgage Loans.

 

Section 14.                                      Confidentiality.  Seller hereby acknowledges and agrees that
(i) all written or computer-readable information provided by Purchaser to
Seller regarding Purchaser and (ii) the terms of this Agreement (the “Purchaser
Confidential Information”), shall be kept confidential and each of their
respective contents will not be divulged to any party without Purchaser’s
consent except to the extent that (i) Seller deems appropriate to do so in
working with legal counsel, auditors, taxing authorities or other governmental
agencies or regulatory bodies or in order to comply with any applicable federal
or state laws, (ii) any portion of Purchaser Confidential Information is
in the public domain other than due to a breach of this

 

34

 

covenant,
(iii) Seller deems appropriate in connection with exercising any or all of
Seller’s rights or remedies or complying with any obligations under this
Agreement.

 

Section 15.                                      Term.  This Agreement shall continue in effect
until terminated as to future transactions by written instruction signed by
either Seller or Purchaser and delivered to the other, provided that no
termination will affect the obligations hereunder as to any outstanding
Transaction.

 

Section 16.                                      Exclusive
Benefit of Parties; Assignment.  The
Agreement is for the exclusive benefit of the parties hereto and their
respective successors and assigns and shall be deemed to give any legal or
equitable right to any other person, including the Custodian.  Except as provided in Section 7, no
rights or obligations created by this Agreement may be assigned by any party
hereto without the prior written consent of the other parties.

 

Section 17.                                      Amendments;
Waivers; Cumulative Rights.  This
Agreement may be amended from time to time only by written agreement of Seller
and Purchaser.  Any forbearance, failure
or delay by either party in exercising any right, power or remedy hereunder
shall not be deemed to be a waiver thereof, and any single or partial exercise
by Purchaser of any right, power or remedy hereunder shall not preclude the
further exercise thereof.  Every right,
power and remedy of Purchaser shall continue in full force and effect until
specifically waived by Purchaser in writing. 
No right, power or remedy shall be exclusive, and each such right, power
or remedy shall be cumulative and in addition to any other right, power or
remedy, whether conferred hereby or hereafter available at law or in equity or
by statute or otherwise.

 

Section 18.                                      Execution
in Counterparts.  This Agreement may
be executed in any number of counterparts, each of which shall be deemed an
original, but all of which shall constitute one and the same instrument.

 

Section 19.                                      Effect
of Invalidity of Provisions.  In
case any one or more of the provisions contained in this Agreement should be or
become invalid, illegal or unenforceable in any respect, the validity, legality
and enforceability of the remaining provisions contained herein or therein
shall in no way be affected, prejudiced or disturbed thereby.

 

Section 20.                                      Governing
Law.  This Agreement shall be
governed by and construed in accordance with the laws of the State of New York
without regard to conflict of law rules.

 

Section 21.                                      Notices.  Any notices, consents, elections, directions
and other communications given under this Agreement shall be in writing and
shall be deemed to have been duly given when telecopied or delivered by
overnight courier to, personally delivered to, or on the third day following
the placing thereof in the mail, first class postage prepaid to, the respective
addresses set forth on the cover page hereof for Seller and Purchaser, or to
such other address as either party shall give notice to the other party
pursuant to this Section 21. 
Notices to Assignee shall be given to such address as Assignee shall
provide to Seller in writing.

 

Section 22.                                      Entire
Agreement.  This Agreement, the
Funding Confirmations and the Custodial Agreement contain the entire agreement
between the parties hereto with

 

35

 

respect to the subject
matter hereof, and supersede all prior and contemporaneous agreements between
them, oral or written, of any nature whatsoever with respect to the subject
matter hereof.

 

Section 23.                                      Costs
of Enforcement.  In addition to any
other indemnity specified in this Agreement, in the event of a breach by Seller
of this Agreement or the Custodial Agreement. 
Seller agrees to pay the reasonable attorneys fees and expenses of
Purchaser and, when applicable, Assignee incurred in the enforcement of the
Agreement as a consequence of such breach.

 

Section 24.                                      Purchaser’s
Appointment as Attorney-In-Fact. Seller hereby irrevocably constitutes and
appoints Purchaser and any officer or agent thereof, with full power of
substitution, as its true and lawful attorney-in-fact with full irrevocable
power and authority in the place and stead of Seller and in the name of Seller
or in its own name, from time to time in Purchaser’s discretion, for the
purpose of carrying out the terms of this Agreement, to take any and all
appropriate action and to execute any and all documents and instruments which
may be reasonably necessary or desirable to accomplish the purposes of this
Agreement, and, without limiting the generality of the foregoing, Seller hereby
gives Purchaser the power and right, on behalf of Seller, without assent by,
but with notice to, Seller, to do the following:

 

(a)                                  in
the name of Seller, or in its own name, or otherwise, to take possession of and
endorse and collect any checks, drafts, notes, acceptances or other instruments
for the payment of moneys due under any mortgage insurance or with respect to
any other Mortgage Loans and to file any claim or to take any other action or
proceeding in any court of law or equity or otherwise deemed appropriate by
Purchaser for the purpose of collecting any and all such moneys due under any
such mortgage insurance or with respect to any other Mortgage Loans whenever
payable;

 

(b)                                 to
pay or discharge taxes and liens levied or placed on or threatened against the
Mortgage Loans;

 

(c)                                  (A) to
direct any party liable for any payment under any Mortgage Loans to make
payment of any and all moneys due or to become due thereunder directly to
Purchaser or as Purchaser shall direct; (B) to ask or demand for, collect,
receive payment of and receipt for, any and all moneys, claims and other
amounts due or to become due at any time in respect of or arising out of any
Mortgage Loans; (C) to sign and endorse any invoices, assignments,
verifications, notices and other documents in connection with any Mortgage
Loans; (D) to commence and prosecute any suits, actions or proceedings at
law or in equity in any court of competent jurisdiction to collect the Mortgage
Loans or any proceeds thereof and to enforce any other right in respect of any
Mortgage Loans; (E) to defend any suit, action or proceeding brought
against Seller with respect to any Mortgage Loans; (F) to settle,
compromise or adjust any suit, action or proceeding described in
clause (E) above and, in connection therewith, to give such discharges or
releases as Purchaser may deem appropriate; and (G) generally, to sell,
transfer, pledge and make any agreement with respect to or otherwise deal with
any Mortgage Loans as fully and completely as though Purchaser were the
absolute owner thereof for all purposes, and to do, at Purchaser’s option and
Seller’s expense, at any time, and from time to time, all acts and things which
Purchaser deems necessary to protect, preserve or realize upon the

 

36

 

Mortgage Loans and
Purchaser’s liens thereon and to effect the intent of this Agreement, all as fully
and effectively as such Seller might do;

 

(d)                                 to
direct the actions of Custodian with respect to the Mortgage Loans under the
Custodial Agreement; and

 

(e)                                  to
execute, from time to time, in connection with any sale provided for in
Section 7, any endorsements, assignments or other instruments of
conveyance or transfer with respect to the Mortgage Loans.

 

Seller hereby ratifies
all that said attorneys shall lawfully do or cause to be done by virtue
hereof.  This power of attorney is a
power coupled with an interest and shall be irrevocable.

 

The powers conferred on
Purchaser hereunder are solely to protect Purchaser’s interests in the Mortgage
Loans and shall not impose any duty upon it to exercise any such powers.  Purchaser shall be accountable only for
amounts that it actually receives as a result of the exercise of such powers,
and neither it nor any of its officers, directors, employees or agents shall be
responsible to Seller for any act or failure to act hereunder, except for its
or their own gross negligence or willful misconduct.

 

Section 25.                                      Submission
to Jurisdiction; Waivers.

 

SELLER HEREBY IRREVOCABLY AND
UNCONDITIONALLY:

 

(1) SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING
RELATING TO THIS REPURCHASE AGREEMENT AND THE OTHER REPURCHASE DOCUMENTS, OR
FOR RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE
EXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK, THE
FEDERAL COURTS OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW
YORK, AND APPELLATE COURTS FROM ANY THEREOF;

 

(2) CONSENTS THAT ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH COURTS
AND, TO THE EXTENT PERMITTED BY LAW, WAIVES ANY OBJECTION THAT IT MAY NOW OR
HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT
OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT COURT AND
AGREES NOT TO PLEAD OR CLAIM THE SAME;

 

(3) AGREES THAT SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING MAY BE
EFFECTED BY MAILING A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY
SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE PREPAID, TO ITS ADDRESS SET FORTH
ON THE COVER PAGE HERETO OR

 

37

 

AT SUCH OTHER ADDRESS OF WHICH
PURCHASER SHALL HAVE BEEN NOTIFIED;

 

(4) AGREES THAT NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT SERVICE OF
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT TO SUE IN
ANY OTHER JURISDICTION; AND

 

(5) SELLER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATING TO THIS REPURCHASE AGREEMENT, ANY OTHER DOCUMENT
RELATING THERETO OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

 

Section 26.                                      Construction.
 The headings in this Agreement are for
convenience only and are not intended to influence its construction.  References to Sections and Exhibits in this
Agreement are to the Sections of and Exhibits to this Agreement.  The Exhibits and Schedules to this Agreement
are part of this Agreement, and are incorporated herein by reference.  The singular includes the plural, the plural
the singular, and the words “and” and “or” are used in the conjunctive or
disjunctive as the sense and circumstances may require.

 

Section 27. Effect
of Amendment and Restatement.  Upon
the execution of this Agreement by all parties hereto and the delivery of the
opinion required by Section 11(a)(x), the Original Repurchase Agreement
shall be amended, restated and superseded in its entirety by this
Agreement.  The parties hereto
acknowledge and agree that (a) the liens and security interests granted under
the Original Repurchase Agreement are in full force and effect and, upon the
amendment and restatement of the Original Repurchase Agreement and the related
documents, such liens and security interests secure and continue to secure the
payment and performance of Seller’s obligations under this Agreement and the
related documents, and (b) upon the effectiveness of  such amendment and restatement, all outstanding Mortgage Loans
under, and as defined in, the Original Repurchase Agreement, shall be deemed to
be outstanding as Mortgage Loans hereunder mutatis  mutandis, in each case on
the terms and conditions set forth in this Agreement.

 

38

 

IN WITNESS
WHEREOF, Purchaser and Seller have duly executed this Agreement as of the date
and year set forth on the cover page hereof.

 

	
   

  	
  UBS
  WARBURG REAL ESTATE

  
	
   

  	
    SECURITIES INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ GEORGE A. MANGIARACINA

  	
   

  
	
   

  	
   

  	
  Name: George A. Mangiaracina

  
	
   

  	
   

  	
  Title: Executive Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ ROBERT CARPENTER

  	
   

  
	
   

  	
   

  	
  Name: Robert Carpenter

  
	
   

  	
   

  	
  Title: Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MORTGAGEIT,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ LARRY P. LEWIS

  	
   

  
	
   

  	
   

  	
  Name: Larry P. Lewis

  
	
   

  	
   

  	
  Title: Chief Operating OfficerExhibit
10.6

 

AMENDED AND RESTATED MORTGAGE LOAN CUSTODIAL AGREEMENT

 

	
  PURCHASER:

  	
   

  	
  UBS WARBURG REAL ESTATE SECURITIES INC

  
	
   

  	
   

  	
   

  
	
  ADDRESS:

  	
   

  	
  1285 AVENUE OF THE AMERICAS

  
	
   

  	
   

  	
  NEW YORK, NEW YORK 10019

  
	
   

  	
   

  	
  ATTENTION: 
  GEORGE A. MANGIARACINA

  
	
   

  	
   

  	
  TELEPHONE: 
  (212) 713-3734

  
	
   

  	
   

  	
  ATTENTION: 
  ROBERT CARPENTER

  
	
   

  	
   

  	
  TELEPHONE: 
  (212) 713-8749

  
	
   

  	
   

  	
   

  
	
  CUSTODIAN:

  	
   

  	
  JPMORGAN CHASE BANK

  
	
   

  	
   

  	
   

  
	
  ADDRESS:

  	
   

  	
  450 WEST 33rd STREET

  
	
   

  	
   

  	
  (15th FLOOR)

  
	
   

  	
   

  	
  NEW YORK, NEW YORK 
  10001

  
	
   

  	
   

  	
   

  
	
  SELLER:

  	
   

  	
  MORTGAGEIT, INC.

  
	
   

  	
   

  	
   

  
	
  ADDRESS:

  	
   

  	
  33 MAIDEN LANE

  
	
   

  	
   

  	
  NEW YORK, NEW YORK 
  10038

  
	
   

  	
   

  	
  ATTENTION: 
  MIKE ZIGROSSI

  
	
   

  	
   

  	
   

  
	
  DATE:

  	
   

  	
  JANUARY 10, 2003

  

 

 

TABLE OF CONTENTS

 

	
  Section 1.

  	
  Definitions

  	
  2

  
	
   

  	
   

  	
   

  
	
  Section 2.

  	
  Delivery
  of Documents by Seller

  	
  9

  
	
   

  	
   

  	
   

  
	
  Section 3.

  	
  Custodian
  as Custodian for, and Bailee of, Purchaser, Assignee and Warehouse Lender

  	
  10

  
	
   

  	
   

  	
   

  
	
  Section 4.

  	
  Certification
  by Custodian; Delivery of Documents

  	
  11

  
	
   

  	
   

  	
   

  
	
  Section 5.

  	
  Funding
  by the Takeout Investor

  	
  14

  
	
   

  	
   

  	
   

  
	
  Section 6.

  	
  Default

  	
  14

  
	
   

  	
   

  	
   

  
	
  Section 7.

  	
  Access to
  Documents

  	
  15

  
	
   

  	
   

  	
   

  
	
  Section 8.

  	
  Custodian’s
  Fees and Expenses; Successor Custodian; Standard of Care

  	
  15

  
	
   

  	
   

  	
   

  
	
  Section 9.

  	
  Assignment
  by Purchaser

  	
  17

  
	
   

  	
   

  	
   

  
	
  Section 10.

  	
  Insurance

  	
  17

  
	
   

  	
   

  	
   

  
	
  Section 11.

  	
  Representations,
  Warranties and Covenants

  	
  17

  
	
   

  	
   

  	
   

  
	
  Section 12.

  	
  No Adverse
  Interests

  	
  18

  
	
   

  	
   

  	
   

  
	
  Section 13.

  	
  Amendments

  	
  19

  
	
   

  	
   

  	
   

  
	
  Section 14.

  	
  Execution
  in Counterparts

  	
  19

  
	
   

  	
   

  	
   

  
	
  Section 15.

  	
  Agreement
  for Exclusive Benefit of Parties; Assignment

  	
  19

  
	
   

  	
   

  	
   

  
	
  Section 16.

  	
  Effect
  of Invalidity of Provisions

  	
  19

  
	
   

  	
   

  	
   

  
	
  Section 17.

  	
  Governing Law

  	
  19

  
	
   

  	
   

  	
   

  
	
  Section 18.

  	
  Consent to
  Service

  	
  19

  
	
   

  	
   

  	
   

  
	
  Section 19.

  	
  Notices

  	
  19

  
	
   

  	
   

  	
   

  
	
  Section 20.

  	
  Certification

  	
  19

  
	
   

  	
   

  	
   

  
	
  Section 21.

  	
  Authorized
  Representatives

  	
  20

  
	
   

  	
   

  	
   

  
	
  Section 22.

  	
  Construction

  	
  20

  

 

i

 

	
  Exhibit A

  	
  Dry Submission
  Package

  	
   

  
	
  Exhibit B-1

  	
  Cash Window
  Submission Package

  	
   

  
	
  Exhibit B-2

  	
  Freddie Mac
  Document List

  	
   

  
	
  Exhibit B-3

  	
  Fannie Mae
  Document List

  	
   

  
	
  Exhibit B-4

  	
  Fannie Mae
  Bailee Letter

  	
   

  
	
  Exhibit C-1

  	
  Conduit
  Submission Package

  	
   

  
	
  Exhibit C-2

  	
  Conduit Bailee
  Letter

  	
   

  
	
  Exhibit D

  	
  Conversion
  Submission Packages

  	
   

  
	
  Exhibit E

  	
  Request for
  Certification

  	
   

  
	
  Exhibit F

  	
  Document Codes

  	
   

  
	
  Exhibit G-1

  	
  Warehouse
  Lender’s Release

  	
   

  
	
  Exhibit G-2

  	
  Warehouse
  Lender’s Wire Instructions

  	
   

  
	
  Exhibit H-1

  	
  Seller’s Release

  	
   

  
	
  Exhibit H-2

  	
  Seller’s Wire
  Instructions

  	
   

  
	
  Exhibit I-1

  	
  Purchaser’s Wire
  Instructions to Seller

  	
   

  
	
  Exhibit I-2

  	
  Purchaser’s Wire
  Instructions to Custodian

  	
   

  
	
  Exhibit I-3

  	
  Purchaser’s
  Delivery Instructions to Custodian

  	
   

  
	
  Exhibit J

  	
  Notice by
  Assignee to Custodian of Purchaser’s Default

  	
   

  
	
  Exhibit K

  	
  Limited Power of
  Attorney

  	
   

  
	
  Exhibit L

  	
  Unidentified
  Mortgage Loans List

  	
   

  
	
  Exhibit M

  	
  Unidentified/Suspension
  Mortgage Loan Directive

  	
   

  
	
  Exhibit N

  	
  Form of Delivery
  Instructions

  	
   

  
	
  Exhibit O

  	
  Purchaser’s
  Instructions to Custodian to Destroy Specified Files

  	
   

  
	
  Exhibit P

  	
  Form of
  Electronic Tracking Agreement

  	
   

  
	
  Exhibit Q

  	
  Authorized
  Representatives of Purchaser

  	
   

  
	
  Exhibit R

  	
  Authorized Representatives of Seller

  	
   

  
	
  Exhibit S

  	
  Authorized Representatives of Custodian

  	
   

  
	
  Schedule A

  	
  List of Conduits

  	
   

  

 

ii

 

AMENDED AND RESTATED MORTGAGE LOAN CUSTODIAL AGREEMENT

 

THIS AMENDED AND RESTATED
MORTGAGE LOAN CUSTODIAL AGREEMENT (“Agreement”), dated as of the date set forth
on the cover page hereof, among UBS WARBURG REAL ESTATE SECURITIES INC.
(“Purchaser”), JPMORGAN CHASE BANK (“Custodian”) and the SELLER whose name is
set forth on the cover page hereof (“Seller”).

 

RECITALS

 

WHEREAS, the Purchaser,
the Seller and the Custodian are parties to the Mortgage Loan Custodial
Agreement, dated as of March 26, 2001 (the “Original Custodial Agreement”);

 

WHEREAS, in connection
with the Original Custodial Agreement, (i) the Purchaser has agreed to
purchase, from time to time, at its sole election from Seller, certain
residential first mortgage loans pursuant to the terms and conditions of one or
more Purchase Agreements (as defined therein) between Purchaser and Seller
relating to Dry Transactions, Cash Window Transactions or Conduit Transactions
(each as defined therein) and (ii) the Purchaser desired to have Custodian take
possession of the Mortgage Notes (as defined therein) evidencing the Mortgage
Loans (as defined therein), along with certain other documents specified
therein, as the custodian for and bailee of Purchaser or Assignee (as defined
therein) in accordance with the terms and conditions thereof;

 

WHEREAS, the Purchaser,
the Seller and the Custodian desire to amend and restate the Original Custodial
Agreement as provided herein;

 

NOW, THEREFORE, for good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree that the Original Custodial
Agreement be amended and restated in its entirety as follows:

 

PRELIMINARY STATEMENT

 

Purchaser has agreed to
purchase, from time to time, at its sole election from Seller, certain
residential first mortgage loans pursuant to the terms and conditions of one or
more Purchase Agreements between Purchaser and Seller relating to Dry
Transactions, Cash Window Transactions or Conduit Transactions.  Seller is obligated to service the Mortgage
Loans pursuant to the terms and conditions of the Purchase Agreements.  Purchaser desires to have Custodian take
possession of the Mortgage Notes evidencing the Mortgage Loans, along with
certain other documents specified herein, as the custodian for and bailee of
Purchaser or Assignee in accordance with the terms and conditions hereof.

 

The parties hereto agree
as follows:

 

 

Section 1.               Definitions.  As used in this Agreement, the following
terms shall have the following meanings:

 

“Agency”:  Freddie Mac or Fannie Mae, as applicable.

 

“Applicable Agency
Documents”:  The documents listed on
Exhibit B-2 or Exhibit B-3, as applicable.

 

“Applicable Guide”:  With respect to each Takeout Investor the
applicable guide published by such Takeout Investor setting forth the
requirements each Mortgage Loan needs to satisfy in order to be eligible for
purchase by such Takeout Investor, as such guide may be amended or supplemented
from time to time.

 

“Assignee”:  With respect to this Agreement and any
Mortgage Loan, any assignee of the Purchaser pursuant to a pledge or
rehypothecation of the Mortgage Loan.

 

“Assignment of
Mortgage”:  An assignment of the
Mortgage, notice of transfer or equivalent instrument sufficient under the laws
of the jurisdiction wherein the related Mortgaged Property (or the Underlying
Mortgaged Property, in the case of a Co-op Loan) is located to reflect of
record the sale of a Mortgage Loan.

 

“Bailee Letter”:  A Fannie Mae Bailee Letter or a Conduit
Bailee Letter, as applicable.

 

“Business Day”:  Any day other than (a) a Saturday,
Sunday or other day on which banks located in The City of New York, New York
are authorized or obligated by law or executive order to be closed, or
(b) any day on which UBS Warburg Real Estate Securities Inc is closed for
business, provided that notice thereof shall have been given not less than
seven calendar days prior to such day.

 

“Cash Window Submission
Package”:  The documents listed on
Exhibit B-1, which shall be delivered by Seller to Custodian in connection
with each Cash Window Transaction.

 

“Cash Window
Transaction”:  A transaction initiated
by Purchaser’s delivery of a Request for Certification which identifies Fannie
Mae or Freddie Mac as the Takeout Investor but does not include a Conversion
Code.

 

“Certification”:  With respect to a Mortgage Loan, the full
performance by Custodian of the procedures set forth in Sections 4(a) and
4(b).

 

“Certification Code”:  A Mortgage Loan Absentee Code, a Mortgage
Loan Approval Code or a Mortgage Loan Suspension Code.

 

“Certification
Report”:  A Request for Certification to
which Custodian has added its Certification Codes and, when a Certification
Code indicates suspension, applicable Exception Codes, and which is transmitted
by Custodian to Purchaser in an appropriate data layout provided by Purchaser.

 

2

 

“Commitment”:  A commitment executed by Takeout Investor and
Seller on Takeout Investor’s letterhead evidencing Takeout Investor’s agreement
to purchase one or more Mortgage Loans from Seller and Seller’s agreement to
sell one or more Mortgage Loans to an investor in a forward trade by the
applicable Commitment Expiration Date.

 

“Commitment Expiration
Date”:  With respect to any Commitment,
the expiration date thereof.

 

“Conduit”:  Any of the Entities listed on
Schedule A, as amended or supplemented from time to time.

 

“Conduit Bailee
Letter”:  The master bailee letter, in
the form of Exhibit C-2, for use by Custodian in connection with the
delivery of a Conduit Submission Package, provided, however, for the purposes
of delivering the related Conduit Submission Package, excluding (i) a copy
of the Commitment, (ii) the Warehouse Lender’s Release or Seller’s
Release, as applicable, and (iii) the original Assignment of Mortgage, in
blank, to a Conduit.

 

“Conduit Submission
Package”:  The documents listed on
Exhibit C-1, which shall be delivered by Seller to Custodian in connection
with each Conduit Transaction.

 

“Conduit
Transaction”:  A transaction initiated
by Purchaser’s delivery of a Request for Certification which identifies a
Conduit as the Takeout Investor but does not include a Conversion Code.

 

“Confirmation”:  A confirmation confirming a trade between
Seller and Takeout Investor.

 

“Conversion Code”:  With respect to a Mortgage Loan, the
conversion code set forth in Part II of Exhibit F, entered by
Purchaser, along with the Program Code, in the “PROG CODE” column of the
related Request for Certification indicating that (i) such Mortgage Loan
was previously acquired by Purchaser in a Dry Transaction and (ii) a
Conversion Submission Package shall be received by Custodian on the applicable
Delivery Date.

 

“Conversion Submission
Package”:  One of the sets of documents
listed on Exhibit D, which shall be delivered by Seller to Custodian in
connection with each Conversion Transaction.

 

“Conversion
Transaction”:  With respect to a
Mortgage Loan, a transaction initiated by Purchaser’s delivery to Custodian of
a Request for Certification containing a Conversion Code.  A Conversion Transaction shall always be
preceded by a Dry Transaction.

 

“Co-op”:  Shall mean a private, cooperative housing
corporation, having only one class of stock outstanding, which owns or leases
land and all or part of a building or buildings, including apartments, spaces
used for commercial purposes and common areas therein and whose board of
directors authorizes the sale of stock and the issuance of a Co-op Lease.

 

3

 

“Co-op Lease”:  Shall mean, with respect to a Co-op Loan,
the lease with respect to a dwelling unit occupied by the Mortgagor and
relating to the stock allocated to the related dwelling unit.

 

“Co-op Loan”:  Shall mean a Mortgage Loan, which is secured
by the pledge of stock allocated to a dwelling unit in a Co-op and a collateral
assignment of the related Co-op Lease.

 

“Co-op Security
Agreement”:  Shall mean the agreement
creating a first lien security interest in the stock allocated to a dwelling
unit in the residential cooperative housing corporation that was pledged to
secure such Co-op Loan and the related Co-op Lease.

 

“Cumulative Position
File”:  A list of all Mortgage Loans
held by the Custodian on each day which includes all information which would be
on the Custodian’s Certification Report and additionally includes the shipping
information for each Mortgage Loan which has been released from the Custodian’s
possession (i.e. airbill number, federal express tracking code or other
identifying information).

 

“Custodian”:  JPMorgan Chase Bank, a New York banking
corporation, and its permitted successors hereunder.

 

“Delivery Date”:  With respect to a Mortgage Loan, the date
set forth on the related Request for Certification in the “DELIVERY DATE”
column, which shall be the Business Day on which Seller desires the applicable
portion of the related Submission Package be sent by Custodian to the
Takeout Investor, i.e., one Business Day prior to the Business Day on which
Seller desires the applicable portion of the Submission Package to be received
by the Takeout Investor.

 

“Delivery
Directive”:  With respect to each
Mortgage Loan being offered by Seller for sale to Purchaser pursuant to a
Conduit Transaction or a Cash Window Transaction, the delivery directive, set
forth in Part IV of Exhibit F, used by Purchaser in a notice
delivered via electronic transmission in the form of Exhibit M, to direct
Custodian to deliver the related Submission Package in accordance with the
Delivery Instructions.

 

“Delivery
Instructions”:  With respect to a
Mortgage Loan, instructions prepared by Seller, in the form of Exhibit N
indicating the address for the delivery by Custodian of the applicable portion
of the related Submission Package.

 

“Dry Submission
Package”:  The documents listed on
Exhibit A, which shall be delivered by Seller to Custodian in connection
with each Dry Transaction.

 

“Dry Transaction”:  A transaction initiated by Purchaser’s
delivery to Custodian of a Request for Certification, which does not identify a
Takeout Investor, and which does not include a Conversion Code.

 

“Electronic Agent”:  The electronic agent identified in the
Electronic Tracking Agreement.

 

4

 

“Electronic Tracking
Agreement”:  The Electronic Tracking
Agreement, substantially in the form set forth in Exhibit P hereto, dated as of
the date hereof, among the Purchaser, the Seller, an electronic agent and MERS,
as the same shall be amended, supplemented or otherwise modified from time to
time.

 

“Entity”:  Any individual, corporation, partnership,
joint venture, association, joint stock company, trust (including any
beneficiary thereof), unincorporated organization or government or any agency
or political subdivision thereof.

 

“Exception Code”:  Each of the exception codes set forth in
Part V of Exhibit F, placed by Custodian on a Certification Report
indicating missing documents, incomplete documents and deficiencies in documents
reviewed by Custodian.

 

“Expected Delivery
Date”:  The date identified on a Request
for Certification as the “Expected Delivery Date of Mortgage File”, which shall
be the date on which Seller has informed Purchaser that a Submission Package
will be received by Custodian from Seller.

 

“Freddie Mac”:  Freddie Mac and any successor thereto.

 

“Freddie Mac
Commitment”:  A commitment executed by
Freddie Mac and Seller evidencing Freddie Mac’s agreement to purchase one or
more Mortgage Loans from Seller and Seller’s agreement to sell one or more
Mortgage Loans to Freddie Mac by the applicable Commitment Expiration Date
under the Applicable Guide.

 

“Fannie Mae”:  Fannie Mae and any successor thereto.

 

“Fannie Mae Bailee
Letter”:  The master bailee letter, in
the form of Exhibit B-4, for use by Custodian in connection with the
delivery to Fannie Mae of the Cash Window Submission Package, excluding
(i) the original Assignment of Mortgage, in blank, (ii) the Warehouse
Lender’s Release or Seller’s Release, as applicable, (iii) all
modification agreements relating to a Mortgage, (iv) the Delivery
Instructions and (v) a copy of the Commitment.

 

“Fannie Mae
Commitment”:  A commitment executed by
Fannie Mae and Seller, evidencing Fannie Mae’s agreement to purchase one or
more Mortgage Loans from Seller and Seller’s agreement to sell one or more
Mortgage Loans to Fannie Mae by the applicable Commitment Expiration Date under
the Applicable Guide.

 

“Hold Directive”:  With respect to each Mortgage Loan being
offered by Seller for sale to Purchaser pursuant to a Conduit Transaction or a
Cash Window Transaction, the hold directive, set forth in Part IV of
Exhibit F, delivered by Purchaser via electronic transmission in a notice
in the form of Exhibit M to direct Custodian to continue to hold the
related Submission Package.

 

“HUD”:  United States Department of Housing and
Urban Development and any successor thereto.

 

5

 

“Interim Funder” shall
mean with respect to each MERS Designated Mortgage Loan, the Person named on
the MERS System as the interim funder pursuant to the MERS Procedures Manual.

 

“Limited Power of
Attorney”:  A limited power of attorney,
in the form of Exhibit K, executed by Seller and delivered to Custodian,
authorizing Custodian to prepare Mortgage Note endorsements in the form
indicated thereon.

 

“Loan Identification
Data”:  The applicable information
regarding a Mortgage Loan, set forth on a Request for Certification, which
shall include Purchaser’s reference number, the name of Purchaser’s applicable
program, the Mortgage Loan number, the MERS Identification Number, the last
name of the Mortgagor, the address of the Mortgaged Property, the face amount
of the Mortgage Note, the number of months to maturity of the Mortgage Loan, and
the interest rate borne by the Mortgage Note and, solely with respect to Cash
Window Transactions, Conduit Transactions and Conversion Transactions, the name
of the Takeout Investor, the sale price of the Mortgage Loan to the Takeout
Investor, the commitment number, the Commitment Expiration Date, the Delivery
Date, the Release Payment, and the name of the Warehouse Lender.

 

“Losses”:  Any and all losses, claims, damages,
liabilities or expenses (including reasonable attorney’s fees) incurred by any
person specified; provided however that “Losses” shall not include losses,
claims, damages, liabilities or expenses which would have been avoided had such
person taken reasonable actions to mitigate such losses, claims, damages,
liabilities or expenses.

 

“MERS Designated Mortgage
Loan” shall have the meaning assigned to such term in Section 3 of the
Electronic Tracking Agreement; provided that no Mortgage Loan shall be
considered a MERS Designated Mortgage Loan unless an Electronic Tracking
Agreement shall have been entered into.

 

“MERS Identification
Number” shall mean the eighteen digit number permanently assigned to each MERS
Designated Mortgage Loan.

 

“MERS Procedures Manual”
shall mean the MERS Procedures Manual attached as Exhibit B to the Electronic
Tracking Agreement, as it may be amended, supplemented or modified from time to
time.

 

“MERS Report” shall mean
the schedule listing MERS Designated Mortgage Loans and other information
prepared by the Electronic Agent pursuant to the Electronic Tracking Agreement.

 

“MERS® System” shall mean
the Electronic Agent’s mortgage electronic registry system, as more
particularly described in the MERS Procedures Manual.

 

“Mortgage”:  With respect to a Mortgage Loan that is not
a Co-op Loan, a mortgage, deed of trust or other security instrument creating a
first lien on an estate in fee simple in real property securing a Mortgage
Note, and with respect to a Co-op Loan, the Co-op Security Agreement.

 

6

 

“Mortgage Loan”:  A one-to-four family residential mortgage
loan that is subject to this Agreement.

 

“Mortgage Loan Absentee
Code”:  The mortgage loan absentee code,
set forth in Part III of Exhibit F, placed by Custodian on a
Certification Report to notify Purchaser that a Submission Package related to a
Mortgage Loan listed on a Request for Certification is not in Custodian’s
possession.

 

“Mortgage Loan Approval
Code”:  The mortgage loan approval code,
set forth in Part III of Exhibit F, placed by Custodian on a
Certification Report to notify Purchaser that Custodian’s review of the
applicable items in a Submission Package is complete and that such items
satisfy all the applicable requirements set forth in Section 4(a) and
Section 4(b).

 

“Mortgage Loan Suspension
Code”:  The mortgage loan suspension
code, set forth in Part III of Exhibit F, placed by Custodian on a
Certification Report to notify Purchaser that Custodian’s review of the
Submission Package has determined that one or more of the documents in the
Submission Package are missing, incomplete or incorrect and/or do not satisfy
one or more of the requirements set forth in Section 4(a) or
Section 4(b).

 

“Mortgage Note”:  The note or other evidence of the
indebtedness of a Mortgagor secured by a Mortgage.

 

“Mortgaged Property”:  The property subject to the lien of the
Mortgage securing a Mortgage Note.

 

“Mortgagor”:  The obligor on a Mortgage Note.

 

“Notice of
Bailment”:  A notice, in the form of
Schedule A to Exhibit B-4 or C-2, as applicable, delivered by
Custodian to Takeout Investor in connection with each delivery to Takeout
Investor of the applicable portion of each Submission Package.

 

Officer’s
Certificate:  A certificate signed by
the Chairman of the Board or the Vice Chairman of the Board or a President or a
Vice President and by the Treasurer or the Secretary or one of the Assistant
Treasurers or Assistant Secretaries of the Seller, and delivered to the
Purchaser as required by this Agreement.

 

“Original Custodial
Agreement”:  Shall have the meaning
assigned to such term in the recitals hereof.

 

“Payee Number”:  The code used by Fannie Mae to indicate the
wire transfer instructions that will be used by Fannie Mae to purchase a
Mortgage Loan.

 

“Program Code”:  Each of the codes, set forth in Part I
of Exhibit F, placed by the Purchaser in the “PROG CODE” column of a
Request for Certification indicating that the Mortgage Loan is being offered by
Seller to Purchaser in a Dry Transaction, Cash Window Transaction or a Conduit
Transaction, as applicable.

 

7

 

“Purchase
Agreement”:  Each Amended and Restated
Mortgage Loan Purchase Agreement, dated as of the date set forth on the cover
page thereof, between Seller and Purchaser, as each is amended from time to
time providing the terms of Dry Transactions, Cash Window Transactions, Conduit
Transactions or Conversion Transactions.

 

“Purchase Date”:  With respect to a Mortgage Loan, the date on
which Purchaser purchases such Mortgage Loan from Seller.

 

“Purchaser”:  UBS Warburg Real Estate Securities Inc. and
its successors.

 

“Purchaser’s Wire
Instructions to Seller”:  The wire
instructions, set forth on Exhibit I-1, specifying the account which shall
be used for the payment of all amounts due and payable by Seller to Purchaser
hereunder.

 

“Purchaser’s
Payment”:  The amount set forth on the
Request for Certification in the “RELEASE PAYMENT” column.

 

“Purchaser’s Wire
Instructions to Custodian”:  Wire
Instructions delivered by Purchaser to Custodian, in the form of
Exhibit I-2, executed by Purchaser, receipt of which has been acknowledged
by Custodian specifying the wire address where all funds received in accordance
with Purchaser’s Wire Instructions to Seller shall be transferred by Custodian.

 

“Release Payment”:  The funds referred to in a Warehouse
Lender’s Release or Seller’s Release, as applicable.

 

“Request for
Certification”:  A report detailing Loan
Identification Data supplied by Seller to Purchaser, transmitted by Purchaser
to Custodian either via facsimile in the form of Exhibit E or transmitted
electronically in an appropriate data layout, regarding all Mortgage Loans
being offered for sale by Seller to Purchaser on the Submission Package
Delivery Date.

 

“Seller”:  The Seller whose name is set forth on the
cover page hereof, and its permitted successors hereunder.

 

“Seller’s Release”:  A letter, in the form of Exhibit H-1,
delivered by Seller when no Warehouse Lender has an interest in a Mortgage
Loan, conditionally releasing all of Seller’s right, title and interest in such
Mortgage Loan upon receipt of payment by Seller.

 

“Seller’s Wire
Instructions”:  The wire instructions,
set forth in a letter in the form of Exhibit H-2, to be used for the
payment of funds to Seller when no Warehouse Lender has an interest in the
Mortgage Loans to which such payment relates.

 

“Submission
Package”:  With respect to each Mortgage
Loan, a Dry Submission Package, a Cash Window Submission Package, a Conduit
Submission Package or a Conversion Submission Package, as applicable.

 

“Successor Servicer”:  An entity designated by Purchaser, in
conformity with the Purchase Agreement, to replace Seller as servicer for
Purchaser, and, with respect to Cash Window Transactions, as seller/servicer of
the Mortgage Loans for the Agency.

 

8

 

“Takeout Investor”:  An Agency or a Conduit, as applicable.

 

“Underlying Mortgaged
Property”:  Shall mean with respect to
each Co-op Loan, the underlying real property owned by the related residential
cooperative housing corporation.

 

“Underwriter”:  Any party, including but not limited to a
mortgage loan pool insurer, who underwrites a Mortgage Loan prior to its
purchase by Purchaser.

 

“Underwriter’s
Form”:  A Fannie Mae / Freddie Mac
Form 1008/1077, HUD 92900WS, HUD92900.4, VA Form 26-6393,
VA Form 26-1866, or a mortgage loan pool insurance certificate, as
applicable, completed by an Underwriter with respect to a Mortgage Loan,
indicating that such Mortgage Loan complies with its underwriting requirements.

 

“Unidentified/Suspension
Mortgage Loan Directive”:  A Delivery
Directive or a Hold Directive, as applicable.

 

“Unidentified Mortgage
Loans List”:  A list of Mortgage Loans
for which Custodian has received the related Submission Packages from Seller
but which have not been identified by Purchaser in a Request for
Certification.  Such list shall include,
with respect to each Mortgage Loan, the information set forth in Exhibit L.

 

“Warehouse Lender”:  Any lender providing financing to Seller in
any fractional amount for the purpose of originating or purchasing Mortgage
Loans, which lender has a security interest in such Mortgage Loans as
collateral for the obligations of Seller to such lender.  In all Dry Transactions and Conversion
Transactions, Purchaser shall be the Warehouse Lender.

 

“Warehouse Lender’s
Release”:  A letter, in the form of
Exhibit G-l, from a Warehouse Lender to Purchaser, conditionally releasing
all of Warehouse Lender’s right, title and interest in certain Mortgage Loans identified
therein upon receipt of payment by Warehouse Lender.

 

“Warehouse Lender’s Wire
Instructions”:  The wire instructions,
set forth in a letter in the form of Exhibit G-2, from a Warehouse Lender
to Purchaser, setting forth wire instructions for all amounts due and payable
to such Warehouse Lender.

 

Section 2.               Delivery
of Documents by Seller. 
(a)  Seller may, before the first purchase by Purchaser under
a Purchase Agreement of a Mortgage Loan, deliver to Custodian a Limited Power
of Attorney, provided, however, Custodian shall have no responsibility or
obligation to act under such Limited Power of Attorney.

 

(b)           If Seller desires to
engage in Cash Window Transactions, prior to the first such transaction:

 

(1)           relating to a Freddie
Mac Commitment, Seller shall deliver to Purchaser a copy of (i) Freddie
Mac Form 1035 (Custodial Agreement), if applicable, duly executed by the
related custodian and Freddie Mac, (ii) Freddie Mac Form 3 (Summary
Agreement) or such other equivalent agreement as is acceptable to Purchaser, duly
executed by Seller and Freddie Mac, and (iii) Freddie Mac Form 1
(Fixed-Rate

 

9

 

Mortgage Purchase
Contract Conventional Home Mortgages - Original Cash) or Freddie Mac
Form 9 (Fixed-Rate Mortgage Purchase Contract Conventional Home Mortgages
– Gold Cash), or Freddie Mac Form 2 (Adjustable Rate Purchase Contract
Conventional Home Mortgages); or

 

(2)           relating to a Fannie
Mae Commitment, Seller shall deliver to Purchaser a copy of (i) Fannie Mae
Form 2003 (Custodial Agreement) if applicable, duly executed by the
related custodian and Fannie Mae, (ii) Fannie Mae Mortgage Selling and
Servicing Contract, and Fannie Mae Form 482 (Designation of Payee – Wire
Transfer Information), and (iii) either a Standard Mandatory Delivery
Commitment or a Negotiated Mandatory Delivery Commitment or a Negotiated
Market-Rate Standby Commitment.

 

(c)           With respect to each
Mortgage Loan being offered by Seller for sale to Purchaser pursuant to
(i) a Dry Transaction, (ii) a Cash Window Transaction, (iii) a
Conduit Transaction or (iv) a Conversion Transaction, Seller shall deliver
to Custodian a Submission Package on the Expected Delivery Date.  In no event shall Seller deliver a
Submission Package to Custodian later than 12:00 Noon New York City time
on the related Delivery Date.

 

Section 3.               Custodian
as Custodian for, and Bailee of, Purchaser, Assignee and Warehouse Lender.  (a)  With respect to each Mortgage
Note, each Assignment of Mortgage (except with respect to MERS Designated
Mortgage Loans) and all other documents constituting each Submission Package
that are delivered to Custodian or that at any time come into Custodian’s
possession, Custodian, subject to the provisions of paragraphs (b) and (c)
of this Section 3, shall act solely in the capacity of custodian for, and
bailee of, Purchaser.  Custodian shall,
subject to the provisions of paragraphs (b) and (c) of this Section 3
and except as otherwise required by Section 4, hold all documents constituting
a Submission Package received by it for the exclusive use and benefit of
Purchaser, and shall make disposition thereof only in accordance with this
Agreement.  Custodian shall segregate
and maintain continuous custody of all documents constituting a Submission Package
received by it in secure and fireproof facilities in accordance with customary
standards for such custody and shall mark its books and records to indicate
that the Submission Package is being held for Purchaser.

 

(b)           Purchaser hereby
notifies Custodian that each Mortgage Loan purchased by Purchaser from Seller
shall be promptly assigned by Purchaser to Assignee, as of the date of
Purchase, as described in Section 9. 
Upon notice, in the form of Exhibit J, by Assignee to Custodian of
Purchaser’s default, Assignee may (i) require Custodian to act with
respect to the related Submission Packages solely in the capacity of custodian
for, and bailee of, Assignee, but nevertheless subject to and in accordance
with the terms of this Agreement, (ii) require Custodian to hold such
Submission Packages for the exclusive use and benefit of Assignee,
(iii) assume the rights of Purchaser under this Agreement to furnish
instructions to Custodian as to the disposition of such Submission Packages and
such rights shall be exercisable solely by Assignee and (iv) take all such
actions under the Electronic Tracking Agreement which are necessary to
effectuate any of the foregoing. 
Custodian shall give Assignee written acknowledgment to the effect set
forth in (i), (ii) and (iii), by executing such notice and returning a copy
thereof to Assignee.  In the event that,
prior to receipt of such notice from Assignee, Custodian delivered any
Submission Package to Purchaser, Takeout Investor or Purchaser’s

 

10

 

designee, Custodian
shall so notify Assignee, and Custodian shall not be deemed to hold such
Submission Package for Assignee unless and until such Submission Package is
redelivered to Custodian.  The failure
of Custodian to give the written acknowledgment referred to above shall not
affect the validity of such assignment, pledge or grant of a security
interest.  The effects of Assignee’s
notice to Custodian set forth above shall continue until Custodian is otherwise
notified in writing by Assignee.  The
terms of this Agreement shall not apply to any Submission Package physically
delivered by Custodian to Assignee.

 

(c)           Seller and Purchaser
acknowledge that Warehouse Lender, if any, identified from time to time in each
Warehouse Lender’s Release to be received by Custodian pursuant to
Section 2(c), is a warehouse lender for the Seller.  Seller and Purchaser acknowledge that, in
accordance with the terms of each Warehouse Lender’s Release to be received by
the Custodian pursuant to Section 2(c), pursuant to which each such Warehouse
Lender conditionally releases its security interest in the Mortgage Loan
referred to in the related Warehouse Lender’s Release, such release shall not
be effective until the Release Payment is received in accordance with the
Warehouse Lender’s Wire Instructions. 
Until receipt of a Release Payment, the interest of the related
Warehouse Lender in a Mortgage Loan shall continue and remain in full force and
effect.

 

(d)           If any additional
documents relating to the Submission Package come into the Custodian’s
possession, the provisions of paragraphs (a), (b) and (c) of this
Section 3 shall apply to such additional documents in the same manner as
such provisions apply to related Submission Package.

 

(e)           Purchaser shall notify
Custodian on each Business Day, of all Mortgage Loans purchased by Purchaser on
such Business Day which relate to this Agreement.

 

(f)            On or prior to
7:00 p.m. New York time, Custodian shall deliver to Purchaser a Cumulative
Position Report reflecting all Mortgage Loans held by custodian as of such time
under this Agreement.

 

Section 4.               Certification
by Custodian; Delivery of Documents.

 

(a)           With respect to each
Mortgage Loan that Purchaser desires to purchase, Purchaser shall deliver to
Custodian a Request for Certification. 
Upon receipt by Custodian of a Request for Certification, Custodian
shall perform the following procedures with respect to each Mortgage Loan
listed on such Request for Certification:

 

(i)            Custodian shall
ascertain whether it is in possession of a Submission Package for each Mortgage
Loan identified on a Request for Certification.  If Custodian is not in possession of a Submission Package
relating to a Mortgage Loan identified on a Request for Certification,
Custodian shall annotate its Certification Report in the appropriate space
provided with a Mortgage Loan Absentee Code. 
If Custodian is in possession of Submission Packages delivered by Seller
which do not relate to any of the Mortgage Loans listed on a Request for
Certification, Custodian shall generate an Unidentified Mortgage Loans List and
shall deliver such List promptly to Purchaser. 
Purchaser shall deliver a copy of such Unidentified Mortgage Loans List
to Seller.  No

 

11

 

action shall be taken by
Custodian, other than in accordance with Unidentified/ Suspension Mortgage Loan
Directive or a notice in the form of Exhibit I-3, with respect to Mortgage
Loans appearing on an Unidentified Mortgage Loans List until any such Mortgage
Loans are included in a Request for Certification.

 

(ii)           With respect to each
Request for Certification Custodian shall:

 

(A)          verify the Loan
Identification Data appearing in (1) the “LAST NAME” column by comparing
such Loan Identification Data to the information in the Mortgage Note and
Assignment of Mortgage, (2) the “NOTE DATE” (indicating any Mortgage Note
with a date which is greater than 30 days prior with the appropriate exception
code), “FACE AMOUNT”, “# OF MONTHS TO MATURITY” and “NOTE RATE” columns by
comparing such Loan Identification Data to the information in the Mortgage Note
and (3) the “MERS IDENTIFICATION NUMBER” column by comparing
such Loan Identification Data to each the information in the Mortgage Note;

 

(B)           if the Program Code
indicates a Cash Window Transaction, verify the Loan Identification Data
appearing in the “LOAN #” column by comparing the related information in any of
the related Applicable Agency Documents;

 

(C)           if the Program Code
indicates a Cash Window Transaction, Conduit Transaction or Conversion Transaction,
verify the Loan Identification Data appearing in the “TAKEOUT INVESTOR”, “SALE
PRICE”, “COMMITMENT #”, and “COMMITMENT EXPIRATION DATE” columns by comparing
such Loan Identification Data to the information appearing in the Commitment;
and

 

(D)          if the Program Code
indicates a Cash Window Transaction or a Conduit Transaction, verify the Loan
Identification Data appearing in the “WAREHOUSE LENDER” column by comparing
such Loan Identification Data to the information appearing in the Warehouse
Lender’s Release or Seller’s Release, as applicable.

 

After applying the
applicable procedures set forth in clauses (A), (B) and (C) above, any
discrepancies between the Loan Identification Data and documents comprising the
Submission Package shall be noted by Custodian in the appropriate column
immediately below each item of Loan Identification Data.

 

(b)           With respect to each
Request for Certification, following completion by Custodian of the procedures
set forth in Section (4)(a).

 

(i)            Custodian shall review
each applicable set of documents comprising the Submission Package and shall
ascertain whether (A) each such document is in Custodian’s possession,
(B) each such document accurately conforms with the Loan Identification
Data set forth in the Request for Certification or as modified by any notations
supplied by Custodian pursuant to Section 4(a)(ii), (C) each such
document appears regular on its face, (D) each such document in the
Submission Package appears

 

12

 

on its face to conform to
the requirements of Exhibit A, Exhibit B-l, Exhibit C-1 or
Exhibit F, as applicable, (E) unless the Program Code indicates
either a Dry Transaction or a Conversion Transaction, the Mortgage Loan is
listed on a schedule attached to a Warehouse Lender’s Release or a Seller’s
Release, as the case may be, (F) either (1) if the Release Payment is
a dollar amount, the amount appearing in the “RELEASE PAYMENT” column on the
Request for Certification is equal to or exceeds the Release Payment, or
(2) if the Program Code indicates either a Dry Transaction or a Conversion
Transaction, or if the Release Payment is a formula, as indicated in
Exhibit G-1, the Custodian need not verify the amount, if any, appearing
in the “RELEASE PAYMENT” column and (G) (1) with respect to the wire
transfer instructions as set forth in Freddie Mac Form 987 (Wire Transfer
Authorization for a Cash Warehouse Delivery) such wire transfer instructions
are identical to Purchaser’s Wire Instructions to Seller or (2) the Payee
Number set forth on Fannie Mae Form 1068 (Fixed-Rate, Graduated-Payment,
or Growing-Equity Mortgage Loan Schedule) or Fannie Mae Form 1069
(Adjustable-Rate Mortgage Loan Schedule), as applicable, is identical to the
Payee Number that has been identified by Purchaser in the Request for
Certification.

 

(ii)           If Custodian determines
that the documents in the Submission Package and the Mortgage Loan to which
they relate conform in all respects with Section 4(b)(i), Custodian shall
so indicate in the space provided in its Certification Report with a Mortgage
Loan Approval Code.  If Custodian
determines that the documents in a Submission Package and the Mortgage Loan to
which they relate conform in all respects with Section 4(b)(i) except that
the endorsement of the Mortgage Note is missing, Custodian may, but shall not
be obligated to, prepare such endorsement pursuant to the Limited Power of
Attorney.  If documents in the
Submission Package do not conform in all respects with Section 4(b)(i) or
are missing and/or do not conform, Custodian shall annotate its Certification
Report with a Mortgage Loan Suspension Code followed by each applicable
Exception Code such that Purchaser is informed of each and every missing
document and/or non-conformity in the space provided in its Certification
Report.

 

(c)           Custodian shall use its
reasonable efforts to perform a Certification with respect to any Submission
Package delivered after 12:00 Noon New York City time on a related
Delivery Date for which it has received a Request for Certification.  Upon completion of its Certification,
Custodian shall deliver a Certification Report to Purchaser.  All applicable documents comprising a
Submission Package relating to Mortgage Loans (except the related Assignments
of Mortgage which shall be retained by the Custodian) with respect to which
Custodian has assigned a Mortgage Loan Approval Code shall be delivered by
Custodian in the form and specific order required by Seller, via overnight
courier in accordance with the Delivery Instructions on the applicable Delivery
Date and, except with respect to Mortgage Loans for which Freddie Mac is the
Takeout Investor, under cover of a fully completed Notice of Bailment prepared
by Custodian in accordance with the terms of the Bailee Letter.  If Seller fails to instruct Custodian
regarding the order and specific form for a delivery to Takeout Investor of
such applicable documents, the Custodian shall deliver such applicable
documents in the original form and specific order received from Seller.  In those cases where a copy of any
intervening mortgage assignment, or an unrecorded original of any intervening
mortgage assignment, or an original UCC-1 or UCC-3, are delivered to the
Custodian, Seller shall cause the original of such

 

13

 

instrument to be
recorded.  In those cases where a copy
of an original document has been delivered to the Custodian together with an
officer’s certificate of the Seller indicating that such document has been
delivered for recordation, the Custodian shall, no less frequently than one
time per calendar month review such Submission Package to ascertain if the
required document has been delivered with the timeframe set forth in such
officer’s certificate.  If Delivery
Instructions direct Custodian to deliver any portion of a Submission Package to
a location that is not Takeout Investor’s office, Custodian must receive
Purchaser’s written consent to make deliveries to such location prior to
complying with such Delivery Instructions. 
Upon receipt of one written approval from Purchaser, such written
approval shall, unless Custodian receives a notice from Purchaser to the
contrary, be deemed to apply to all Delivery Instructions delivered in the
future by Seller that list such location. 
Following delivery by Custodian of the applicable portion of a
Submission File to Takeout Investor, all remaining documents comprising such
Submission Package shall be held by Custodian until receipt by Custodian of
written instructions from Purchaser to destroy such documents.  Each month, Purchaser may, but shall not be
obligated to, deliver to Custodian a notice in the form of Exhibit O,
informing Custodian of all files that Purchaser has authorized Custodian to
destroy.

 

All applicable documents
comprising a Submission Package relating to Mortgage Loans with respect to
which Custodian has assigned a Mortgage Loan Suspension Code shall be held by
Custodian until receipt from Purchaser of instructions.  On each Business Day during which a Mortgage
Loan shall have a Mortgage Loan Suspension Code assigned to it, Purchaser shall
send to Custodian an Unidentified/Suspension Mortgage Loan Directive with
respect to such Mortgage Loan.

 

(d)           At any time following
the delivery of a Certification, in the event Custodian becomes aware of any
defect with respect to such Submission Package or the related forms, including
the return of documents to the Custodian from Takeout Investor due to a defect
in such documents, the Custodian shall give prompt oral notice of such defect
to the Purchaser, followed by a written specification thereof.

 

Section 5.  Funding
by the Takeout Investor.  Custodian
shall promptly notify Purchaser, either electronically or by facsimile, upon
receipt, in accordance with Purchaser’s Wire Instructions to Seller, of funds
by Custodian.  Each notice shall
identify all such funds by (i) the amount, (ii) the source from which
such funds were received and (iii) to the extent received by Custodian,
Seller’s name.  Unless Custodian is
otherwise instructed by Assignee, Custodian shall promptly transfer such funds
to Purchaser in accordance with Purchaser’s Wire Instructions to Custodian.

 

Section 6.  Default.  If Seller fails to fulfill any of its obligations under the
Purchase Agreement, the Electronic Tracking Agreement or hereunder or in
connection with the exercise by Purchaser of any remedy pursuant to
Section 3 of the Purchase Agreement then, subject to the provisions of
Section 3(c) hereof, Purchaser may, by notice to Custodian, (a) appoint
Custodian as its delegee to complete the endorsements on the Mortgage Notes
held by Custodian and to complete and record at Purchaser’s expense the related
blank Assignments of Mortgages relating to the affected Mortgage Loan in
accordance with Purchaser’s instructions, when applicable, (b) require
Custodian to deliver to Purchaser, Takeout Investor or Successor Servicer the
Submission Packages (or any portion thereof specified by Purchaser) in
Custodian’s

 

14

 

possession or
under Custodian’s control to which the failure relates, and (c) take such
actions under the Electronic Tracking Agreement on behalf of the Purchaser as
are necessary to effectuate the foregoing.

 

Section 7.  Access to Documents.  Upon reasonable prior written notice to
Custodian, Purchaser (and if the Mortgage Loans have been assigned, Assignee)
and its agents, accountants, attorneys and auditors will be permitted during
normal business hours to examine and copy at their expense the Submission Packages,
documents, records and other papers in possession of or under the control of
Custodian relating to any or all of the Mortgage Loans in which Purchaser has
an interest.  Upon the request of
Purchaser (or, if applicable, Assignee) and at the cost and expense of
Purchaser (or, if applicable, Assignee), Custodian shall provide such Purchaser
(or, if applicable, Assignee) with copies of the Mortgage Notes, Assignments of
Mortgage and other documents in Custodian’s possession relating to any of the
Mortgage Loans in which Purchaser (or, if applicable, Assignee) has an
interest.

 

Section 8.  Custodian’s Fees and Expenses; Successor
Custodian; Standard of Care.

 

(a)            It is understood
that Seller will be charged for Custodian’s fees for its services under this Agreement
in such amounts and in the manner set forth in the related Purchase
Agreement.  Notwithstanding the
foregoing, Custodian has no lien on, and shall not attempt to place a lien on,
any of the Mortgage Loans or proceeds thereof to secure the payment of its
fees.

 

(b)           Subject to the
provisions of any other agreement between Custodian and Purchaser, Custodian
may only resign for cause.  Such
resignation shall take effect upon the earlier of (i) the appointment of a
successor Custodian by Purchaser and delivery of all the Submission Packages
and any portion of the related documents in Custodian’s possession to the
successor Custodian, and (ii) the delivery of all the Submission Packages
and any portion of the related documents in Custodian’s possession to the
Purchaser or its designee pursuant to (c) below.

 

(c)           In the event of any
such resignation, Custodian shall promptly transfer to the successor Custodian
all Submission Packages and related documents in Custodian’s possession and the
successor Custodian shall hold Submission Packages and related documents in
accordance with this Agreement.  If
Purchaser directs the removal of Custodian, Purchaser shall be responsible for
all expenses associated with the transfer of the Submission Packages and any
related documents in Custodian’s possession and for any fee of the successor
Custodian in excess of the fees of the initial Custodian hereunder.  The Purchaser shall have 90 days in
which to appoint and designate an acceptable successor Custodian.  If the Purchaser fails to appoint a
successor Custodian within such 90-day period, then Custodian shall deliver
possession and custody of the Submission Packages and any related Submission
Packages in Custodian’s possession to Purchaser at the address specified on the
cover page hereof, or if a timely written designation is received by Custodian,
to any designee of Purchaser.

 

(d)           Custodian shall have
responsibility only for the Submission Packages and the contents thereof which
have been actually delivered to it and which have not been released to

 

15

 

Seller, Purchaser,
the Agency or Assignee or their respective agent or designee in accordance with
this Agreement.  The standard of care to
be exercised by Custodian in the performance of its duties under this Agreement
shall be to exercise the same degree of care as Custodian exercises when it
holds mortgage loan documents as security for its own loans or its own mortgage
warehouse loan customers.  Custodian is
an agent, bailee and custodian only and is not intended to be, nor shall it be
construed to be (except only as agent, bailee and custodian), a representative,
trustee or fiduciary of or for either Seller, the Agency, Purchaser or
Assignee.

 

(e)           Custodian shall incur no
liability to any Entity for Custodian’s acts or omissions hereunder, except for
liabilities which (i) arise from Custodian’s gross negligence or willful
misconduct or (ii) solely with respect to the Purchaser, which arise from
Custodian negligently or intentionally failing to (A) issue an accurate
Certification Report, provided, however, any such liability shall not be
incurred with respect to the issuance of an inaccurate Certification Report if
the defect causing such inaccuracy would not have been ascertainable by the
Custodian applying the procedures expressly set forth in this Agreement,
(B) timely deliver the Submission Package in accordance with the Delivery
Instructions or Purchaser’s written instructions, as applicable,
(C) prevent the loss, damage or destruction of any document included in a
Submission Package when held by Custodian, (D) perform its obligations
under Section 5 or (E) comply with an Unidentified/Suspension
Mortgage Loan Directive; provided, however, Custodian shall have no liability
hereunder if Custodian’s failure to perform resulted from the inaction or
action of any other Entity, other than Entities that are affiliated with
Custodian or are acting under the direct control of Custodian.  Custodian’s liability under this Agreement
shall be limited to direct damages resulting from aforesaid.  In addition Custodian shall not be liable,
directly or indirectly, for any losses, claims, damages, liabilities or
expenses which would have been avoided had any Entity making a claim taken reasonable
action to mitigate such losses, claims, damages, liabilities or expenses or
(2) special or consequential damages, even if Custodian has been advised
of the possibility of such damages; provided, however, that Purchaser’s direct
damages resulting from a decline in the market value of a Mortgage Loan shall
not be deemed special or consequential damages.

 

(f)            Custodian shall be
entitled to rely upon the advice of its legal counsel from time to time and
shall not be liable for any action or inaction by it in reliance upon such
advice.  Custodian also shall be
entitled to rely upon any notice, document, correspondence, request or
directive received by it from Seller, Takeout Investor, Purchaser or Assignee,
as the case may be, that Custodian believes to be genuine and to have been
signed or presented by the proper and duly authorized officer or representative
thereof, and shall not be obligated to inquire as to the authority or power of
any person so executing or presenting such documents or as to the truthfulness
of any statements set forth therein.

 

(g)           Seller hereby
indemnifies, defends and holds Custodian harmless from and against any claim,
legal action, liability or loss that is initiated against or incurred by
Custodian, including court costs and reasonable attorney’s fees and
disbursements, in connection with Custodian’s performance of its duties under
this Agreement, including those involving ordinary negligence, but excluding
those involving gross negligence or willful misconduct of Custodian.

 

16

 

(h)           Custodian undertakes to
perform such duties and only such duties as are specifically set forth in this
Agreement, it being expressly understood that there are no implied duties
hereunder.

 

Section 9.               Assignment
by Purchaser.  Purchaser hereby
notifies Custodian that Purchaser may assign, as of the date of the purchase of
all of its right, title and interest in and to all Mortgage Loans purchased by
Purchaser pursuant to the Purchase Agreement and all rights of Purchaser under
the Purchase Agreement, this Agreement and the Electronic Tracking Agreement
(and this Agreement) in respect of such Mortgage Loans represented thereby to
Assignee, subject only to an obligation on the part of Assignee to deliver each
such Mortgage Loan to Custodian or to Purchaser to permit Custodian, Purchaser
or its designee to make delivery thereof to Takeout Investor, but not
otherwise.  Seller hereby irrevocably
consents to such assignment.  Assignment
by Purchaser of the Mortgage Loans as provided in this Section 9 shall not
release Purchaser from its obligations otherwise under this Agreement.  Subject to any limitations in any agreement
between Assignee and Purchaser, Assignee may, upon notice of Purchaser’s
default as provided in Section 3(b) hereof, directly enforce and exercise
such rights under this Agreement that have been assigned or pledged to it and,
until otherwise notified by Assignee, Purchaser shall no longer have any of
such rights.  Custodian shall assume
that any assignment from Purchaser to Assignee is subject to no limitations
that are not expressly set forth in this Agreement.

 

Section 10.             Insurance.  Custodian shall, at its own expense,
maintain at all times during the existence of this Agreement such (a) fidelity
insurance, (b) theft of documents insurance, (c) forgery insurance
and (d) errors and omissions insurance as Custodian deems, from time to
time appropriate.

 

Section 11.             Representations,
Warranties and Covenants.

 

(a)           By Custodian.  Custodian hereby represents and warrants to,
and covenants with, Seller and Purchaser that, as of the date hereof and at all
times while Custodian is performing services under this Agreement:

 

(i)            Custodian is duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation; and

 

(ii)           Custodian has the full
power and authority to hold each Mortgage Loan and to execute, deliver and
perform, and to enter into and perform its duties and obligations as
contemplated by, this Agreement, has duly authorized the execution, delivery
and performance of this Agreement and has duly executed and delivered this
Agreement, and this Agreement constitutes a legal, valid and binding obligation
of Custodian, enforceable against it in accordance with its terms, except as
the enforcement thereof may be limited by applicable receivership,
conservatorship or similar debtor relief laws and except that certain equitable
remedies may not be available regardless of whether enforcement is sought in
equity or law.

 

(b)           By Seller.  Seller hereby represents and warrants to,
and covenants with, Custodian and Purchaser that, as of the date hereof and
throughout the term of this Agreement:

 

17

 

(i)            Seller is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
incorporation; and

 

(ii)           Seller has the full
power and authority to hold each Mortgage Loan and to execute, deliver and
perform, and to enter into and consummate all transactions contemplated by,
this Agreement, has duly authorized the execution, delivery and performance of
this Agreement and has duly executed and delivered this Agreement, and this
Agreement constitutes a legal, valid and binding obligation of Seller, enforceable
against it in accordance with its terms, except as the enforcement thereof may
be limited by applicable receivership, conservatorship or similar debtor relief
laws and except that certain equitable remedies may not be available regardless
of whether enforcement is sought in equity or law.

 

(iii)          As of the date hereof,
with respect to the Original Custodial Agreement, no default has occurring and
is continuing with respect to Seller.

 

(c)           By Purchaser.  Purchaser hereby represents and warrants to,
and covenants with, Custodian and Seller that, as of the date hereof and
throughout the term of this Agreement:

 

(i)            Purchaser is acquiring
the Mortgage Loans for its own account only and not for any other person;

 

(ii)           Purchaser considers
itself a substantial, sophisticated institutional investor having such
knowledge and experience in financial and business matters that it is capable
of evaluating the merits and risks of investment in the Mortgage Loans;

 

(iii)          Purchaser has been
furnished with all information regarding the related Mortgage Loans that it has
requested from Seller;

 

(iv)          Purchaser is duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation; and

 

(v)           Purchaser has the full
power and authority to hold each Mortgage Loan and to execute, deliver and
perform, and to enter into and consummate all transactions contemplated by,
this Agreement, has duly authorized the execution, delivery and performance of
this Agreement and has duly executed and delivered this Agreement, and this
Agreement constitutes a legal, valid and binding obligation of Purchaser,
enforceable against it in accordance with its terms, except as the enforcement
thereof may be limited by applicable receivership, conservatorship or similar
debtor relief laws and except that certain equitable remedies may not be
available regardless of whether enforcement is sought in equity or law.

 

Section 12.             No
Adverse Interests.  By its
acceptance of each Submission Package, Custodian covenants and warrants to
Purchaser that:  (a) as of the date
of payment by Purchaser of the Release Payment, Custodian, solely in its
capacity as Custodian, holds no adverse interests, by way of security or
otherwise, in the related Mortgage Loan and (b) Custodian hereby waives
and releases any such interest in such Mortgage Loan which it,

 

18

 

acting solely in
its capacity as Custodian, has or which it may thereafter acquire prior to the
time of release of such Mortgage Loan from the terms of this Agreement.

 

Section 13.             Amendments.  This Agreement may be amended from time to
time only by written agreement of Seller, Purchaser and Custodian except that,
if this Agreement shall have been assigned by Purchaser, no amendment shall be
effective unless the amendment is also signed by Assignee.  Purchaser shall give at least five days’
prior written notice to Assignee of any proposed amendment to this Agreement
and shall furnish Assignee with a copy of each such amendment within five days
after it is executed and delivered.

 

Section 14.             Execution
in Counterparts.  This Agreement may
be executed in any number of counterparts, each of which shall be deemed an
original, but all of which shall constitute one and the same instrument.

 

Section 15.             Agreement
for Exclusive Benefit of Parties; Assignment.  This Agreement is for the exclusive benefit of the parties hereto
and their respective successors and permitted assigns hereunder and shall not
be deemed to give any legal or equitable right, remedy or claim to any other
person whatsoever.  This Agreement shall
bind the parties hereto and their respective successors, but, except for the
assignments provided in Sections 3(b) and 9, shall not be assigned or
pledged by any party without the prior written consent of the other
parties.  Written notice from Assignee
to Custodian (with a copy to Purchaser) that Purchaser has defaulted in any
material respect under any funding or loan agreement relating to the financing
of Purchaser’s purchase of Mortgage Loans shall be conclusive for all purposes
of this Agreement.

 

Section 16.             Effect
of Invalidity of Provisions.  In
case any one or more of the provisions contained in this Agreement should be or
become invalid, illegal or unenforceable in any respect, the validity, legality
and enforceability of the remaining provisions contained herein or therein
shall in no way be affected, prejudiced or disturbed thereby.

 

Section 17.             Governing
Law.  This Agreement shall be
governed by and construed in accordance with the laws of the State of New York,
without regard to conflict of laws rules.

 

Section 18.             Consent
to Service.  Each party irrevocably
consents to the service of process by registered or certified mail, postage
prepaid, to it at its address given in or pursuant to Section 19.

 

Section 19.             Notices.  Any notices, consents, directions and other
communications given under this Agreement shall be in writing and shall be
deemed to have been duly given when delivered by facsimile or electronic
transmission, or personally delivered at, or sent by overnight courier to the
addresses of the parties hereto set forth on the cover page hereof or such
other address as any party shall give in a notice to the other parties pursuant
to this Section 19.

 

Section 20.             Certification.  Custodian hereby acknowledges that each time
it enters the Approval Code on a Request for Certification in the “Approval
Code” column, it is

 

19

 

making an express
representation and warranty to Purchaser that it has performed the
Certification as specified in Sections 4(a) and (b) with respect to the
related Mortgage Loan.

 

Section 21.             Authorized
Representatives.  Each individual
designated as an authorized representative of Purchaser or its successors or
assigns, Seller and Custodian, respectively (an “Authorized Representative”),
is authorized to give and receive notices, requests and instructions and to
deliver certificates and documents in connection with this Agreement on behalf
of Purchaser, Seller and Custodian, as the case may be, and the specimen
signature for each such Authorized Representative, initially authorized
hereunder, is set forth on Exhibits Q, R and S hereof, respectively.  From time to time, Purchaser, Seller and
Custodian or their respective successors or permitted assigns may, by
delivering to the others a revised annex, change the information previously
given pursuant to this Section 21, but each of the parties hereto shall be
entitled to rely conclusively on the then current annex until receipt of a
superseding annex.

 

Section 22.             Construction.  The headings in this Agreement are for
convenience only and are not intended to influence its construction.  References to Sections and Exhibits in this
Agreement are to the Sections of and Exhibits to this Agreement.  The Exhibits are part of this
Agreement.  In this Agreement, the
singular includes the plural, the plural the singular, and the words “and” and
“or” are used in the conjunctive or disjunctive as the sense and circumstances
may require.

 

Section 23.             Affect of
Amendment and Restatement.  Upon the
execution of this Agreement and the Purchase Agreement by all parties hereto
and thereto, the Original Custodial Agreement shall be amended, restated and
superseded in its entirety by this Agreement. 
The parties hereto acknowledge and agree that (a) the liens and security
interests granted under the Original Custodial Agreement are in full force and
effect and, upon the amendment and restatement of the Original Custodial
Agreement and the related documents, such liens and security interests secure
and continue to secure the payment and performance of Seller’s obligations
under this Agreement and the related documents, and (b) upon the effectiveness
of such amendment and restatement, all outstanding Mortgage Loans under, and as
defined in, the Original Custodial Agreement, shall be deemed to be outstanding
as Mortgage Loans hereunder mutatis mutandis, in each case on the
terms and conditions set forth in this Agreement.

 

20

 

IN WITNESS WHEREOF,
Seller, Purchaser and Custodian have caused this Agreement to be duly executed
as of the date and year first above written.

 

 

	
   

  	
  MORTGAGEIT, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ LARRY P.
  LEWIS

  	
   

  
	
   

  	
   

  	
  Name: Larry P.
  Lewis

  
	
   

  	
   

  	
  Title: Chief
  Operating Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  UBS WARBURG REAL ESTATE

  SECURITIES INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ GEORGE A.
  MANGIARACINA

  	
   

  
	
   

  	
   

  	
  Name:

  	
  George A.
  Mangiaracina

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ ROBERT
  CARPENTER

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Robert Carpenter

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ GERARD M.
  PEPE

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Gerard M. Pepe

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
  Telephone No.:

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