Document:

spspplan

Exhibit
4.04

SCANA
CORPORATION

STOCK
PURCHASE-SAVINGS PLAN 

(Including
amendments through June 14, 2004)

 

 

 

 

 

 

 

 

 

 

 

SCANA
CORPORATION

STOCK
PURCHASE-SAVINGS PLAN

(Including
amendments through June 14, 2004)

TABLE
OF CONTENTS

	
      Article
	
      Page

	 	
      ARTICLE
      1. PURPOSE
	
      1

	 	 	 
	 	
      ARTICLE
      1-A. MERGER
	
      3

	 	 	 
	 	
      ARTICLE
      II. DEFINITIONS

       
	
      4

       

	
      2.01
	
      ADDITIONAL
      CONTRIBUTIONS
	
      4

	
      2.02
	
      ADJUSTMENT
      FACTOR
	
      4

	
      2.03
	
      AFFILIATE
	
      4

	
      2.04
	
      BENEFICIARY
	
      4

	
      2.05
	
      BREAKIN
      SERVICE
	
      4

	
      2.06
	
      CODE
	
      6

	
      2.07
	
      COMMITTEE
	
      6

	
      2.08
	
      COMMON
      STOCK
	
      6

	
      2.09
	
      COMMON
      STOCK FUND
	
      6

	
      2.10
	
      COMPANY
	
      6

	
      2.11
	
      DATE
      OF DISTRIBUTION
	
      6

	
      2.12
	
      DEFERRALS
	
      6

	
      2.13
	
      DISABILITY
	
      6

	
      2.14
	
      ELIGIBLE
      EARNINGS
	
      6

	
      2.15
	
      ELIGIBLE
      EMPLOYEE
	
      8

	
      2.16
	
      EMPLOYEE
	
      8

	
      2.17
	
      EMPLOYEE
      PLANS COMMITTEE
	
      8

	
      2.18
	
      EMPLOYER
	
      9

	
      2.19
	
      EMPLOYER
      CONTRIBUTION
	
      9

	
      2.20
	
      HIGHLY
      COMPENSATED EMPLOYEE
	
      10

	
      2.21
	
      INACTIVE
      PARTICIPANT
	
      10

	
      2.22
	
      INVESTMENT
      COMMITTEE
	
      10

	
      2.23
	
      INVESTMENT
      FUND
	
      10

	
      2.24
	
      MONEY
      MARKET FUND
	
      10

	
      2.25
	
      PARTICIPANT
	
      10

	
      2.26
	
      PLAN
	
      10

	
      2.27
	
      PLAN
      ADMINISTRATOR
	
      10

	
      2.28
	
      PLAN
      MANAGER
	
      10

	
      2.29
	
      PLAN
      YEAR
	
      10

	
      2.30
	
      REGULAR
      CONTRIBUTIONS
	
      10

	
      2.31
	
      SPOUSE
	
      11

	
      2.32
	
      TERMINATION
      OF EMPLOYMENT
	
      11

	
      2.33
	
      TRUST
      (OR TRUST FUND)
	
      11

	
      2.34
	
      TRUSTEE
	
      11

	
      2.35
	
      VALUATION
      DATE
	
      11

	
      2.36
	
      VALUATION
      PRICE
	
      11

 

	 	
      ARTICLE
      III. ELECTION OF PARTICIPATION

       
	
      12

       

	
      3.1
	
      ELECTION
      TO PARTICIPATE
	
      12

	
      3.2
	
      ELECTION
      AUTHORIZATION
	
      12

	 	 	 
	 	
      ARTICLE
      IV. EMPLOYEE DEFERRALS AND CONTRIBUTIONS

       
	
      13

       

	
      4.1
	
      DEFERRALS
	
      13

	
      4.2
	
      REGULAR
      CONTRIBUTIONS
	
      13

 

i

	
      4.3
	
      ADDITIONAL
      CONTRIBUTIONS
	
      13

	
      4.4
	
      TIMING
      OF CONTRIBUTIONS
	
      15

	
      4.5
	
      SUSPENSION
      OF CONTRIBUTIONS
	
      15

	
      4.6
	
      CHANGES
      IN CONTRIBUTIONS
	
      15

	
      4.7
	
      ROUNDING
      OF AMOUNTS
	
      15

	
      4.8
	
      ROLLOVER
      CONTRIBUTIONS
	
      15

	 	 	 
	 	
      ARTICLE
      V. EMPLOYER CONTRIBUTIONS
	
      17

	 	 	 
	
      5.1
	
      EMPLOYER
      CONTRIBUTIONS
	
      17

	
      5.2
	
      CORRECTIVE
      CONTRIBUTIONS REALLOCATIONS
	
      17

	 	 	 
	 	
      ARTICLE
      IV. PLAN INVESTMENTS

       
	
      18

       

	
      6.1
	
      INVESTMENT
      FUNDS
	
      18

	
      6.2
	
      EMPLOYEE
      DEFERRALS, REGULAR CONTRIBUTIONS, ADDITIONAL
      CONTRIBUTIONS,
	 
	 	
      AND
      ROLLOVER CONTRIBUTIONS
	
      18

	
      6.3
	
      CHANGE
      IN INVESTMENT DESIGNATION OF FUTURE EMPLOYEE DEFERRALS,
      REGULAR
	 
	 	
      CONTRIBUTIONS,
      ADDITIONAL CONTRIBUTIONS AND ROLLOVER
    CONTRIBUTIONS
	
      18

	
      6.4
	
      TRANSFERS
      OF EXISTING EMPLOYE DEFERRALS, REGULAR CONTRIBUTIONS,
      
	 
	 	
      ADDITIONAL
      CONTRIBUTIONS, EMPLOYEE CONTRIBUTIONS AND
ROLLOVER
	 
	 	
      CONTRIBUTIONS
      AMONG INVESTMENT FUNDS
	
      18

	
      6.5
	
      EMPLOYEE
      CONTRIBUTIONS
	
      19

	
      6.6
	
      INVESTMENTS
      IN COMMON STOCK FUND
	
      19

	
      6.7
	
      DIVIDENDS
      OF COMMON STOCK
	
      19

	
      6.8
	
      UNINVESTED
      CASH
	
      20

	
      6.9
	
      DIVERSIFICATION
      OF AMOUNTS IN THE COMMON STOCK FUND
	
      20

	 	 	 
	 	
      ARTICLE
      VII. INVESTMENT ACCOUNTS

       
	
      23

       

	
      7.1
	
      SEPARATE
      ACCOUNTS
	
      23

	
      7.2
	
      ACCOUNT
      INFORMATION
	
      23

	
      7.3
	
      APPLICABLE
      VALUATION DATE
	
      24

	
      7.4
	
      FIDUCIARY
      RESPONSIBILITY
	
      24

	 	 	 
	 	
      ARTICLE
      VIII. WITHDRAWALS/DISTRIBUTIONS

       
	
      26

       

	
      8.1
	
      WITHDRAWALS
      BEFORE TERMINATION OF EMPLOYMENT
	
      30

	
      8.2
	
      FREQUENCY
      OF WITHDRAWAL
	
      31

	
      8.3
	
      FORM
      OF WITHDRAWAL
	
      31

	
      8.4
	
      NOTICE
      OF WITHDRAWAL
	
      31

	
      8.5
	
      DISTRIBUTION
      ON TERMINATION OF EMPLOYMENT OR DISABILITY
	
      31

	
      8.6
	
      DISTRIBUTION
      ON DEATH
	
      32

	
      8.7
	
      PROMPTNESS
      OF DISTRIBUTION
	
      32

	
      8.8
	
      AMOUNT
      OF DISTRIBUTION
	
      33

	
      8.9
	
      FORM
      OF DISTRIBUTION
	
      32

	
      8.10
	
      FRACTIONAL
      SHARES
	
      33

	
      8.11
	
      LIMITATION
      ON COMMENCEMENT OF BENEFITS
	
      33

	
      8.12
	
      EMLOYEE
      TRANSFERS FROM THE EMPLOYER TO AN AFFILIATE
	
      34

	
      8.13
	
      DISTRIBUTIONS
      WITH RESPECT TO QUALIFIED DOMESTIC RELATIONS
    ORDERS
	
      34

	
      8.14
	
      DIRECT
      ROLLOVER DISTRIBUTIONS
	
      34

	
      8.15
	
      DEFINITIONS
	
      35

	 	 	 
	 	
      ARTICLE
      IX. LOANS TO PARTICIPANTS

       
	
      37

       

	
      9.1
	
      AMOUNT
      OF LOAN
	
      37

 

ii

	
      9.2
	
      TERMS
      OF LOAN
	
      37

	
      9.3
	
      COMMENCEMENT
      OF LOANS
	
      42

	
      9.4
	
      EMPLOYEE
      TRANSFERS FROM THE EMPLOYER TO AN AFFILIATE
	
      42

	
      9.5
	
      SPECIFIC
      INFORMATION
	
      42

	 	 	 
	 	
      ARTICLE
      X. VESTING

       
	
      44

       

	
      10.1
	
      VESTING
	
      44

	
      10.2
	
      EMPLOYEE
      TRANSFERS FROM THE EMPLOYER TO AN AFFILIATE
	
      44

	 	 	 
	 	
      ARTICLE
      XI. FORFEITURES

       
	
      45

       

	
      11.1
	
      TERMNATION
      OF EMPLOYMENT
	
      45

	
      11.2
	
      REPAYMENTS
	
      45

	
      11.3
	
      LOST
      PARTICIPANTS OR BENEFICIARIES
	
      45

	
      11.4
	
      APPLICATION
      OF FORFETURES
	
      45

	 	 	 
	 	
      ARTICLE
      XII. LIMITATIONS ON CONTRIBUTIONS AND BENEFITS

       
	
      46

       

	
      12.1
	
      DEFINITION
      OF ANNUAL ADDITIONS
	
      46

	
      12.2
	
      MAXIMUM
      ANNUAL ADDITION
	
      46

	
      12.3
	
      LIMITITION
      OF ANNUAL ADDITIONS
	
      46

	
      12.4
	
      DEFINITIONS
	
      47

	
      12.5
	
      SPECIAL
      RULES
	
      48

	
      12.6
	
      LIMITATION
      OF BENEFITS AND CONTRIBUTIONS
	
      48

	
      12.7
	
      TRADITIONAL
      RULE
	
      49

	
      12.8
	
      EFFECTIVE
      DATE
	
      50

	
      12.9
	
      MAXIMUM
      AMOUNT OF DEFERRALS
	
      50

	
      12.10
	
      NON-DISCRIMINATION
      LIMITATION ON DEFERRAL CONTRIBUTIONS
	
      51

	
      12.11
	
      NONDISCRIMINATION
      LIMITATIONS ON REGULAR CONTRIBUTIONS AND 
	 
	 	
      EMPLOYERS
      CONTRIBUTIONS
	
      53

	
      12.12
	
      DEFINITIONS
	
      56

	 	 	 
	 	
      ARTICLE
      XIII. TOP HEAVY PROVISIONS

       
	
      61

       

	
      13.1
	
      GENERAL
      RULE
	
      61

	
      13.2
	
      VESTING
      PROVISIONS
	
      61

	
      13.3
	
      MINIMUM
      BENEFIT PROVISIONS
	
      61

	
      13.4
	
      LIMITATION
      ON BENEFITS
	
      61

	
      13.5
	
      COORDINATION
      WITH OTHER PLANS
	
      62

	
      13.6
	
      TOP-HEAVY
      PLAN DEFINITION
	
      62

	
      13.7
	
      KEY
      EMPLOYEE
	
      63

	
      13.8
	
      NON-KEY
      EMPLOYEE
	
      64

	
      13.9
	
      COLLECTIVE
      BARGAINING RULES
	
      64

	
      13.10
	
      DISTRIBUTION
      OF KEY EMPLOYEES
	
      64

	
      13.11
	
      EGTRRA
      MODIFICATIONS TO ARTICLE 13
	
      65

	 	 	 
	 	
      ARTICLE
      XIV. VOTING OF STOCK

       
	
      67

       

	
      14.1
	
      VOTING
      OF STOCK
	
      67

	
      14.2
	
      TENDER
      OFFER RIGHTS WITH RESPECT TO STOCK
	
      67

 

	 	 	 
	 	
      ARTICLE
      XV. ADMINISTRATION

       
	
      69

       

	
      15.1
	
      PLAN
      ADMINISTRATOR
	
      69

	
      15.2
	
      POWERS
      AND DUTIES OF THE COMMITTEE
	
      69

 

iii

	
      15.3
	
      CLAIMS
      PROCEDURE
	
      70

	
      15.4
	
      CLAIMS
      REVIEW PROCEDURE
	
      70

	
      15.5
	
      PLAN
      EXPENSES
	
      71

	
      15.6
	
      ACTIONS
      VIA ELECTRONIC OR TELEPHONE MEDIA
	
      71

	
      15.7
	
      AAUTHORITY
      AND DUTIES
	
      71

	
      15.8
	
      OPERATION
      OF THE INVESTMENT COMMITTEE
	
      71

	
      15.9
	
      DISBURSEMENTS
      FROM TRUST FUND
	
      72

	 	 	 
	 	
      ARTICLE
      XVI. TRUSTEE
	
      74

	 	 	 
	 	
      ARTICLE
      XVII. FIDUCIARY LIABILITIES
	
      75

	 	 	 
	 	
      ARTICLE
      XVIII. AMENDMENT OR TERMINATION
	
      76

	 	 	 
	
      18.1
	
      GENERAL
      PROVISION
	
      76

	
      18.2
	
      SPECIAL
      PROVISION
	
      76

	 	 	 
	 	
      ARTICLE
      XIX. GENERAL PROVISIONS

       
	
      77

       

	
      19.1
	
      SOURCE
      DISTRIBUTIONS
	
      77

	
      19.2
	
      NON-ALIENATION
      OF BENEFITS
	
      77

	
      19.3
	
      MERGER
      OR CONSOLIDATION
	
      77

	
      19.4
	
      TRANSFER
      FROM AFFILIATE
	
      77

	
      19.5
	
      NO
      RIGHT TO EMPLOYMENT
	
      77

	
      19.6
	
      CONTROLLING
      LAW
	
      78

	
      19.7
	
      MILITARY
      SERVICE
	
      78

	 	 	 
	 	
      SIGNATURES

       
	
      79

       

	 	
      APPENDIX
      I

       
	
      80

       

	 	
      APPENDIX
      II

       
	
      87

       

	
      
	
      

iv

SCANA
CORPORATION

STOCK
PURCHASE-SAVINGS PLAN 

(As
amended and restated from January 1, 1989,

to
and as of January 1, 2002)

ARTICLE
I. PURPOSE

 

SCANA
Corporation, as successor corporation to South Carolina Electric & Gas
Company, pursuant to a Plan of Exchange effective December 31, 1984, adopted the
South Carolina Electric & Gas Company Stock Purchase-Savings Plan for
Employees (effective July 1, 1964, as amended through September 1, 1984) on
behalf of itself and as agent for each subsidiary which elects to have its
employees participate in this Plan in order to provide an opportunity for
employees to become shareholders of SCANA Corporation and to encourage them to
save on a regular basis by setting aside part of their earnings. Such Plan was
further amended, effective December 31, 1984 and was amended and restated,
effective July 1, 1985, and subsequently amended effective June 10, 1986 and
July 1, 1986 with a restatement as of the latter date. The Plan was amended and
restated effective January 1, 1989, to comply with the Internal Revenue
Code of 1986 and Treasury Department Regulations with the effective dates of
certain subsequent provisions otherwise indicated. The Plan was amended on June
26, 1991 at Section 4.3 to increase from 5% to 9% the maximum allowable
unmatched Employee contributions, and at sections 8.3A and 8.9A to permit
withdrawals and distributions to be in cash, all such amendments effective as of
October 11, 1991. The Plan was amended on October 15, 1991 by adding “Date
of Distribution” as a defined term under Article II; Plan Sections 4.1, 4.1A,
4.2, 6.3, 8.1, 8.6, 8.7, 8.10, 9.1, 9.1A, 9.2, 15.2, 15.3, 15.4, 15.5, and
Articles I, V, XVI, and XVIII were also amended. The Plan was amended effective
March 7, 1992 regarding the admission of South Carolina Real Estate Development
Company, Inc. and MPX Systems, Inc. as participating Employers. The Plan was
amended on June 16, 1992 with respect to loans, minimum required distributions
after age 701⁄2, the withdrawal by Participants of Employer contributions, the
admission of SCANA Petroleum Resources, Inc. and SCANA Energy Marketing, Inc.
(formerly SCANA Hydrocarbons, Inc.) as participating Employers, and the Plan
restated. The Plan was amended effective January 1, 1995 regarding the admission
of ServiceCare, Inc. as a participating employer. 

The Plan
was amended and restated as of July 1, 1994 to incorporate various amendments,
including the amendments necessary to comply with the Unemployment Compensation
Amendments of 1993 (effective January 1, 1993), the merger of the SCANA
Corporation Employee Stock Ownership Plan with and into the Plan (effective
April 30, 1993), the creation of the Employee Plans Committee as the entity with
general Plan amendment authority (effective December 15, 1993), and various
other clarifying or compliance-related matters. 

The Plan
was amended effective December 1, 1995 to prohibit the borrowing of additional
amounts through Plan loan refinancings.

1

The Plan
was amended and restated generally as of January 1, 1997 with respect to
allowing for rollover contributions; to incorporate various amendments necessary
to comply with the Uniformed Services Employment and Reemployment Act of 1994
and the Small Business Job Protection Act of 1996 and related legislation,
regulations and other guidance; and to include certain other amendments related
to the Trustee’s responsibility.

The Plan
was amended and restated as of January 1, 1999 to permit Participants to invest
their contributions (pre-tax and after-tax) in a Money Market Fund and to
provide for related amendments.

The
rights of any Employee who terminated employment with an adopting Employer
before the effective date of each applicable amendment included in the restated
Plan will be governed by that provision as it was in effect on the Employee’s
termination date.

The Plan
was amended effective December 1, 1999 to add an employee stock ownership plan
feature. Thus, the Plan consists of two portions beginning December 1, 1999. The
first portion is a profit sharing plan intended to qualify under Code Sections
401(a), 401(k) and 401(m). The second portion (the assets of which are invested
in the Common Stock Fund) is both a stock bonus plan and an employee stock
ownership plan intended to qualify under Code Sections 401(a) and 4975(e)(7),
respectively, and as such is designed to invest primarily in qualifying employer
securities of SCANA Corporation.

Effective
January 1, 2000, SCANA Services Company was admitted as a participating
Employer. Effective March 1, 2000, Public Service Company of North Carolina,
Inc. was admitted as a participating Employer.

The Plan
was amended effective January 1, 2001, to permit participants to direct the
investment of all contributions other than Employer Contributions among the
Investment Funds offered under the Plan and to include certain other amendments
related to contribution and investment changes, withdrawals and
loans.

The Plan
was amended, effective January 1, 2002 (unless otherwise indicated), to
implement certain changes required or permitted by the Economic Growth and Tax
Relief Reconciliation Act of 2001.

The Plan
was amended, effective as of various dates as set forth in an EPC resolution
dated June 14, 2004, to make certain design changes and to modify the
responsibilities of the Plan Manager and the Investment Committee.

2

ARTICLE
I-A. MERGER

 

Merger
of Carolina Pipeline Company, Inc. Employee Stock Purchase Thrift Plan into the
SCANA Corporation Stock Purchase-Savings Plan. On April
22, 1982, Carolina Pipeline Company, Inc., was acquired by South Carolina
Electric & Gas Company. Effective April 22, 1982, contributions to the
Carolina Pipeline Company, Inc., Employee Stock Purchase Thrift Plan amended as
of April 22, 1979 (hereinafter referred to as the “CPC Plan”) were suspended and
Participants in the CPC Plan became eligible to participate in the South
Carolina Electric & Gas Company Stock Purchase-Savings Plan. As a result of
the above, former employees of Carolina Pipeline Company, Inc., were
Participants in the CPC Plan by virtue of Account balances in the CPC Plan Trust
and also Participants in this Plan by virtue of meeting the eligibility
requirements and making appropriate contributions to this Plan. Effective
June 10, 1986, the CPC Plan was merged into this Plan. All Participants
with Account balances in the CPC Plan Trust Fund on June 9, 1986, had such
Account balances transferred to this Plan on June 10, 1986, and will be eligible
to receive benefits as set forth in the provisions of this Plan, as amended by
the applicable provisions of Appendix I.

Merger
of SCANA Corporation Employee Stock Ownership Plan into the SCANA Corporation
Stock Purchase-Savings Plan.
Effective April 30, 1993, the SCANA Corporation Employee Stock Ownership Plan
was merged with and into the SCANA Corporation Stock Purchase-Savings Plan. As a
result of this merger, all Account balances held under the ESOP were transferred
to this Plan and became eligible to receive benefits as set forth in the
provisions of this Plan, as amended by the applicable provisions of Appendix
I.

Merger
of Public Service Company of North Carolina, Incorporated and Subsidiaries
Special Savings and Retirement Plan and Trust into the SCANA Corporation Stock
Purchase-Savings Plan.
Effective September 1, 2000, the Public Service Company of North Carolina,
Incorporated and Subsidiaries Special Savings and Retirement Plan and Trust (the
“PSNC Plan”) was merged with and into the SCANA Corporation Stock
Purchase-Savings Plan. As a result of this merger, all Account balances held
under the PSNC Plan were transferred to this Plan and became eligible to receive
benefits as set forth in the provisions of this Plan, as amended by the
applicable provisions of Appendix I. This Plan, as set forth herein, hereby
amends the PSNC Plan to comply with the requirements of the Uruguay
Round Agreements Act (“GATT”), the Uniformed Services Employment and
Reemployment Rights Act of 1994 (“USERRA”), the Taxpayers Relief Act of 1997
(“TRA ‘97”), the Internal Revenue Service Restructuring Act of 1998 and the
Community Renewal Tax Relief Act of 2000 (“CRA”).

3

ARTICLE
II. DEFINITIONS

 

For the
purpose of this Plan the following terms shall have the meanings as set forth
below unless the context requires otherwise:

2.01 Additional Contributions: Eligible
Earnings which a Participant elects to contribute to the Plan in accordance with
Section 4.3. 

2.02 Adjustment
Factor: The cost
of living adjustment factor prescribed by the Secretary of the Treasury under
Section 415(d) of the Code for years beginning after December 31, 1987, as
applied to such items and in such manner as the Secretary shall
provide.

2.03 Affiliate: All
corporations, trades or businesses which are (a) a member, with the Company, of
a controlled group of organizations within the meaning of Code Section 1563(a)
determined without regard to Code Sections 1563(a)(4) and (e)(3)(C); (b) a
member with the Company of a group of trades or businesses (whether or not
incorporated) under common control, as determined by the Secretary of the
Treasury in regulations adopted under Code Section 414(c); (c) any organization
(whether or not incorporated) which is a member with the Company of an
affiliated service group as defined in Code Section 414(m); and (d) any other
entity to the extent required to be aggregated with the Company under final
regulations issued pursuant to Code Section 414(o).

2.04 Beneficiary: The
surviving Spouse of the Participant, unless such surviving Spouse has previously
consented to the designation of another person, estate, trust, or organization
as Beneficiary in a writing acknowledging the effect of such designation, which
writing is witnessed by a notary public. The Beneficiary of an unmarried
Participant or of a married Participant with consenting Spouse shall mean any
person(s) who, or estate, trust, or organization which becomes entitled to
receive benefits upon the death of a Participant. A Participant shall file with
the Plan Manager a designation of Beneficiary. Such a designation may be changed
or revoked by a notice filed with the Plan Manager; however, such a change must
be properly consented to by the Participant’s Spouse, if the Spouse is not named
as Beneficiary. In the case of a Participant with no Spouse, any designation of
a non-Spouse Beneficiary shall automatically be revoked upon the marriage or
remarriage of the Participant. Any individual who is designated as an alternate
payee in a qualified domestic relations order (as defined in Section 414(p) of
the Code) relating to a Participant’s benefits under this Plan shall be treated
as a Beneficiary hereunder, to the extent provided by such order.

2.05 Break
in Service: For
periods of service occurring before July 1, 1989 (the date as of which all
Employer Contributions became fully vested pursuant to Article X):

	 	
      (a)
	
      A
      “Break in Service” means a 12-consecutive month period (Computation
      Period) during which an Employee does not have more than 500 hours of
      Service with the Employer.

4

	 	
      (b)
	
      An
      “Hour of Service” means each hour for which an Employee is directly or
      indirectly paid, or entitled to payment, by the Employer. Hours in which
      duties are performed shall be credited to the Computation Period in which
      the duties are performed. Hours in which no duties are performed but for
      which payment is made for reasons such as vacations, holidays, illness,
      incapacity (including disability), layoff, jury duty, military duty, or
      leave of absence and hours for which back pay is awarded or agreed to
      shall be credited to the Computation Period to which the payment pertains.
      No duplicate credit shall be given on account of an award or agreement for
      back pay.

	
      
	
      
	
       

	 	
      (c)
	
      A
      “Year of Service” is a Computation Period during which the
      Employee completes at least 1,000 Hours of
Service.

	 	
      (d)
	
      “Computation
      Period” is the 12-consecutive month period beginning with the day the
      Employee first performs an Hour of Service for the Employer and each
      anniversary thereof.

	 	
      (e)
	
      “Break
      in Service” shall have the following
consequences:

	 	 	
      (1)
	
      Employee
      with Vested Benefit: The pre-break and post-break Years of Service of an
      Employee who had satisfied the requirements of Article X for a vested
      benefit before commencement of a Break in Service shall be added together
      for the purpose of determining his or her rights and
    benefits.

	 	 	
      (2)
	
      Employee
      with no Vested Benefit: The pre-break Years of Service of an Employee who
      had not earned a vested benefit before commencement of a Break in Service
      shall be lost unless (1) the Employee acquires at least 1,000 Hours of
      Service in a 12-consecutive month period (Computation Period) which
      follows the Break in Service and (2) the number of consecutive one-year
      Breaks in Service is less than the number of earlier Years of Service or
      five, whichever is greater. 

 

	 	 	
      (3)
	
      Solely
      for purposes of determining whether a Break in Service has occurred, an
      individual who is absent from work for maternity or paternity reasons
      shall receive credit for the Hours of Service which would otherwise have
      been credited to such individual but for such absence, or in any case in
      which such hours cannot be determined, eight hours of service per day of
      such absence. For purposes of this paragraph, an absence from work for
      maternity or paternity reasons means an absence (1) by reason of the
      pregnancy of the individual, (2) by reason of a birth of a child of the
      individual, (3) by reason of the placement of a child with the individual
      in connection with the adoption of such child by such individual, or (4)
      for purposes of caring for such child for a period beginning immediately
      following such birth or placement. The Hours of Service credited under
      this paragraph shall be credited (1) in the Computation Period in which
      the absence begins if the crediting is necessary to prevent a Break in
      Service in that period, or (2) in all other cases, in the following
      Computation Period. 

 

5

      
2.06 Code: The
Internal Revenue Code of 1986, as amended from time to time.

2.07 Committee: The
SCANA Corporation Stock Purchase-Savings Plan Committee appointed by the Chief
Executive Officer of the Company is the administrator of the Plan. The members
of the Committee shall serve at the pleasure of the Chief Executive
Officer.

2.08 Common
Stock: The
common stock of SCANA Corporation, also referred to as “shares” or “stock”
allocated or to be allocated to Participants’ Accounts.

2.09 Common
Stock Fund: An
Investment Fund under
which the Trustee holds all of the assets in the employee stock ownership
portion of the Plan, including any shares of Common Stock and any cash dividends
declared on Common Stock. From time to time, the Common Stock Fund may be
referred to as the “ESOP Fund.”

2.10 Company: The term
“Company” shall mean SCANA Corporation.

2.11 Date
of Distribution: The date
on which the Plan Manager processes the distribution from the Participant’s
Account, with shares valued for purposes of such Date of Distribution at the
Valuation Price.

2.12 Deferrals:
Contributions made to the Plan during the Plan Year by the Employer, at the
election of the Participant, in lieu of cash compensation and shall include
contributions made pursuant to a salary reduction agreement on a pre-tax
basis.

2.13 Disability: A
disability of the Participant that causes the Participant to be incapable of
performing his customary duties and entitles the Participant to benefits under
the SCANA Long Term Disability Plan.

2.14 Eligible
Earnings:
Effective for periods prior to January 1, 2000 (and for periods prior to January
1, 2001 for Eligible Employees whose employment is covered by the collective
bargaining agreement with the International Brotherhood of Electrical Workers
(“IBEW Employees”), the term “Eligible Earnings” shall mean an Eligible
Employee’s regular annual base wages or salary plus amounts deferred under
Sections 4.1 and 4.3 of the Plan and pre-tax amounts deferred under Code Section
401(k) under any other plan of the Employer and amounts contributed by the
Eligible Employee on a pre-tax basis under a cafeteria plan maintained by the
Employer under Code Section 125 and amounts received as a qualified
transportation fringe under Code Section 132(f). The term “Eligible Earnings”
shall not include commissions, drawing accounts, bonuses, overtime, or any other
special payments, fees and allowances.

Effective
for Eligible Employees other than IBEW Employees, for periods on or after
January 1, 2000 but before July 1, 2000, the term “Eligible Earnings” shall mean
an Eligible Employee’s regular annual base wages or salary, plus overtime,
commissions and bonuses (other than bonuses paid to officers and key employees
under the Long Term Incentive Plan). Eligible Earnings also includes amounts
deferred under Sections 4.1 and 4.3 of the Plan and pre-tax amounts deferred
under Code Section 401(k) under any other plan of the Employer and amounts
contributed by the Eligible Employee on a pre-tax basis under a cafeteria plan
maintained by the Employer under Code Section 125 and amounts received as a
qualified transportation fringe under Code Section 132(f).

Effective
for Eligible Employees other than IBEW Employees for periods on or after July 1,
2000, and for IBEW Employees for periods on or after January 1, 2001, the term
“Eligible Earnings” shall mean an Eligible Employee’s annual base salary or
regular wages, plus overtime, commissions, bonuses, shift differential, license
pay and other incentive pay (except for long-term incentive pay) plus amounts
deferred under Sections 4.1 and 4.3 of the Plan and pre-tax amounts deferred
under Code Section 401(k) under any other plan of the Employer and amounts
contributed by the Eligible Employee on a pre-tax basis under a cafeteria plan
maintained by the Employer under Code Section 125 and amounts received as a
qualified transportation fringe under Code Section 132(f). The term “Eligible
Earnings” shall not include payment for unused flex credits, payments in lieu of
overtime meals, posthumous pay, relocation payments, per diem payments, car
allowances, severance payments and any non-cash compensation (including, but not
limited to, imputed income). 

For Plan
Years beginning after December 31, 1988, Eligible Earnings in excess of $200,000
shall be disregarded. For Plan Years beginning after December 31, 1993, Eligible
Earnings in excess of $150,000 shall be disregarded. For Plan Years beginning
after December 31, 2001, Eligible Earnings in excess of $200,000 shall be
disregarded. Such dollar limitations on Eligible Earnings shall be adjusted at
the same time and in such manner as permitted under Code Section 401(a)(17) and
the regulations and other guidance issued thereunder. 

6

2.15 Eligible Employee: An
Employee who has attained age 18 and who receives Eligible Earnings from an
Employer or would be receiving Eligible Earnings except for a leave of absence
authorized by the Employer under the Employer’s established personnel practices;
provided, however, that any Employee otherwise eligible to become an Eligible
Employee may voluntarily waive participation in the Plan. Notwithstanding the
foregoing, the term Eligible Employee shall not include:

	 	
      (a)
	
      a
      leased employee as defined in Section 414(n) of the
  Code;

	
      
	
      
	
      

	 	
      (b)
	
      employees
      who do not receive payment for services directly from the Company’s
      payroll; employees of employment agencies which are not Affiliates; and
      persons whose services are rendered pursuant to written arrangements which
      expressly recite that the service provider is not eligible for
      participation in the Plan.

2.16 Employee: A common
law employee of the Company or any Affiliate, including employees covered by a
collective bargaining agreement and a leased employee, as defined in Section
414(n) of the Code; provided, however, that the term “Employee” shall not
include any leased employee (as defined in Section 414(n) of the Code) covered
by a plan described in Section 414(n)(5) of the Code unless all leased employees
constitute more than 20 percent of the total workforce of the Company and its
Affiliates.

2.17 Employee
Plans Committee: The
Employee Plans Committee as appointed by the Chief Executive Officer of the
Company in consultation with the Chairman of the Management Development and
Corporate Performance Committee of the Company’s Board of
Directors.

2.18 Employer: The term
“Employer” shall mean SCANA Corporation, South Carolina Electric & Gas
Company, and South Carolina Pipeline Corporation. The term “Employer” shall also
mean any other Affiliate, the Board of Directors of which shall elect to have
its Employees participate in this Plan, and as to which such election is also
approved by the Board of Directors of SCANA Corporation; in this regard:

	 	
      (a)
	
      effective
      as to Eligible Earnings earned on and after March 7, 1992, South Carolina
      Real Estate Development Company, Inc. (SCANA Development Corporation
      following a name change authorized by the Board on August 25, 1993 and
      filed with the Secretary of State on August 26, 1993) and SCANA
      Communications, Inc. (formerly MPX Systems, Inc.) are participating
      Employers in the Plan for purposes of the participation of their
      Employees;

	
      
	
      
	
      

	 	
      (b)
	
      effective
      as to Eligible Earnings earned on and after July 16, 1992, SCANA Petroleum
      Resources, Inc. and SCANA Energy Marketing, Inc. (formerly SCANA
      Hydrocarbons, Inc.) are participating Employers in the Plan for purposes
      of the participation of their Employees;

7

	 	
      (c)
	
      effective
      as to Eligible Earnings earned on and after January 1, 1995, ServiceCare,
      Inc. is a participating Employer in the Plan for purposes of the
      participation of its Employees;

	
      
	
      
	
      

	 	
      (d)
	
      effective
      as to Eligible Earnings earned on and after January 1, 2000, SCANA
      Services Company is a participating Employer in the Plan for purposes of
      the participation of its Eligible
Employees;

	
      
	
      
	
      

	 	
      (e)
	
      effective
      as to Eligible Earnings earned on and after March 1, 2000, Public Service
      Company of North Carolina, Inc. is a participating Employer in the Plan
      for purposes of the participation of its Eligible
    Employees.

2.19 Employer
Contribution: A
contribution made by an Employer pursuant to Article V.

2.20 Highly
Compensated Employee: “Highly
Compensated Employees” include those Employees who meet the definition of
“Highly Compensated Employee” as determined under Section 414(q) of the Code and
the regulations issued thereunder, as set forth herein. Effective January 1,
1997, the term “Highly Compensated Employee” includes “Highly Compensated Active
Employees” and “Highly Compensated Former Employees” and shall be determined as
follows:

	 	
      (a)
	
      A
      “Highly Compensated Active Employee” means an Employee of the Company or
      an Affiliate who during the current Plan Year performs services for the
      Company or an Affiliate and:

 

	 	 	
      (1)
	
      received
      Compensation for the preceding Plan Year in excess of $80,000 (adjusted at
      the same time and in the same manner as under Section 415(d) of the Code),
      or

	
      
	
      
	
      
	
      
	
      

	 	 	
      (2)
	
      the
      Employee was at any time during the current Plan Year or the preceding
      Plan Year a five percent (5%) owner of the Employer as defined in Section
      416(i)(1) of the Code.

	
      
	
      
	
      
	
      
	
      

	 	
      (b)
	
      For
      purposes of determining Highly Compensated Employees, “Compensation” for a
      Plan Year shall be determined in the same manner as “Compensation” in
      Section 12.4 of the Plan, increased for Plan Years beginning before
      January 1, 1998, by Deferrals under this Plan and any pre-tax elective
      contributions under a cafeteria plan (as defined in Section 125 of the
      Code) maintained by the Company or similar contributions under a plan
      maintained by an Affiliate. (For Plan Years beginning on and after January
      1, 1998, the foregoing amounts are included pursuant to Section 12.4 of
      the Plan.)

8

	 	
      (c)
	
      Notwithstanding
      the foregoing, the determination of Highly Compensated Employees may be
      made under the “top-paid group” election under the regulations or any
      other guidance issued pursuant to Code Section
414(q).

2.21 Inactive
Participant: Any
Eligible Employee or former Eligible Employee who is not an active Participant
in the Plan and who has amounts credited to his Account under the
Plan.

2.22 Investment
Committee: The
Investment Committee is the fiduciary for all financial responsibilities of the
Plan. The Investment Committee consists of the Chief Financial Officer and such
other persons designated by the Chief Executive Officer.

2.23 Investment
Fund: A fund
established in the Trust for investment of contributions made to a Participant’s
Accounts.

2.24 Money
Market Fund: An
Investment Fund which is invested in short term money market instruments,
including, but not by way of limitation, short term securities of the United
States or any agency or instrumentality thereof or in one or more investment
companies commonly known as “money market” mutual funds.

2.25 Participant: An
Eligible Employee who is an active Participant in the Plan and who has amounts
credited to his Account under the Plan. 

2.26 Plan: The
SCANA Corporation Stock Purchase-Savings Plan, the Plan set forth herein, as
amended from time to time.

2.27 Plan
Administrator: The
SCANA Corporation Stock Purchase-Savings Plan Committee
(“Committee”).

2.28 Plan Manager: The
person appointed by the Committee to have primary responsibility for management
of the regular operations of the Plan. The Plan Manager shall report to the
Committee. The Plan Manager may delegate its responsibilities to any individual
or entity and references in the Plan to the Plan Manager shall be deemed to
refer to the Plan Manager’s delegate, if any.

2.29 Plan Year:
Effective January 1, 1989, the term “Plan Year” shall mean the twelve (12)
month period commencing January 1st and ending on the last day of December
next following. For purposes of this Plan, the plan year shall also constitute
the “Limitation Year” for purposes of Section 415 of the Code.

2.30 Regular Contributions: Eligible
Earnings which a Participant elects to contribute to the Plan on an after-tax
basis in accordance with Section 4.2.

9

2.31 Spouse: That
person who is legally married to the Employee according to the law of the
Employee’s residence.

2.32 Termination of Employment: The
ending of the employment relationship between the Employer and an Employee for a
cause other than death. A leave of absence authorized by the Employer under the
Employer’s established and nondiscriminatory personnel practices is not a
termination of employment. Notwithstanding the above, a transfer by a
Participant from the Employer to an Affiliate which has not adopted this Plan
shall not be deemed to be a Termination of Employment.

2.33 Trust
(or Trust Fund): The fund
or funds maintained under the trust agreement with the Trustee to receive and
invest the amounts contributed on behalf of Participants, and from which
distributions will be made.

2.34 Trustee: The
individual(s) or corporation(s) appointed by the Investment Committee, pursuant
to a trust agreement, to hold and manage the Trust Fund.

2.35 Valuation
Date: Any day
on which the New York Stock Exchange or any successor to its business is open
for trading or any other date designated from time to time by the Plan Manager
for determining the value of a Participant’s Account for all purposes under the
Plan, including the determination of amounts available for loans, withdrawals,
and distributions.

2.36 Valuation
Price: The fair
market value for Common Stock as of any date, as determined by the Investment
Committee, or its delegate.

10

ARTICLE
III. ELECTION OF PARTICIPATION

 

3.1 Election
to Participate: An
Eligible Employee may elect to participate in the Plan by giving notice to the
Plan Manager on or before the day on which such Eligible Employee’s
participation is to commence. Such Eligible Employee’s participation will
commence as of the first day of the pay period which begins following the date
the Employer receives the notice. 

3.2 Election
Authorization: The
notice of election to participate under Section 3.1 shall authorize (a) an
Eligible Earnings deferral election as permitted under Section 4.1 and/or (b) a
payroll deduction election as permitted under Section 4.2. Such notice may also
authorize additional contributions under the provisions of Section 4.3, an
Investment Fund designation pursuant to Section 6.2, and a
dividend retention election pursuant to Section 6.7.

11

ARTICLE
IV. EMPLOYEE DEFERRALS AND CONTRIBUTIONS

 

4.1 Deferrals: Subject
to the applicable limitations of Article XII, a Participant may elect to defer
receipt on a pre-tax basis of 1, 2, 3, 4, 5 or 6 percent of Eligible Earnings
under the Plan, such amount to be contributed to his Account under the Plan. The
total of the amount elected under this Section 4.1 and Section 4.2 shall not
exceed 6 percent of the Participant’s Eligible Earnings.

4.2 Regular
Contributions: Subject
to the applicable limitations of Article XII, instead of electing to defer
receipt of a portion of his Eligible Earnings under Section 4.1, a
Participant may elect to contribute to the Plan, by means of payroll deductions
on an after-tax basis, 1, 2, 3, 4, 5 or 6 percent of Eligible Earnings, such
amount to be contributed to his Account under the Plan. The total of the amount
elected under this Section 4.2 and Section 4.1 shall not exceed 6 percent of the
Participant’s Eligible Earnings.

4.3 Additional
Contributions: 

	 	
      (a)
	
      Subject
      to the applicable limitations of Article XII, if a Participant has elected
      to defer receipt of a portion of his Eligible Earnings under Section 4.1
      or has elected to make Regular Contributions under Section 4.2, he may
      authorize Additional Contributions of whole percentages from 1 percent to
      9 percent of Eligible Earnings, which Additional Contributions may be made
      all or a portion in the form of Deferrals on a pre-tax basis under Section
      4.1 or Regular Contributions on an after-tax basis under Section 4.2. Such
      Additional Contributions shall not be considered in determining the amount
      of Employer Contributions. Notwithstanding the foregoing, and subject to
      the applicable limitations of Article XII, the maximum amount that may be
      deferred or contributed under Sections 4.1, 4.2, and this 4.3 by a Highly
      Compensated Employee shall be such percent of Eligible Earnings
      established by the Plan Manager and communicated in writing to Highly
      Compensated Employees, which communication will constitute a Plan
      amendment.

       

	 	
      (b)
	
      Effective
      January 1, 2004, all Participants who are eligible to make Deferrals under
      this Plan and who have attained age 50 before the close of the calendar
      year shall be eligible to make catch-up contributions in accordance with,
      and subject to the limitations of, Section 414(v) of the Code. Such
      catch-up contributions shall not be taken into account for purposes of the
      Plan implementing the required limitations of Sections 402(g) and 415 of
      the Code. The Plan shall not be treated as failing to satisfy the
      provisions of the Plan implementing the requirements of Section 401(k)(3),
      401(k)(11), 401(k)(12), 410(b), or 416 of the Code, as applicable,
      by reason of the making of such catch-up contributions. Catch-up
      contributions under this Plan are subject to the following
      provisions:

12

	 	 	
      (1)
	
      In
      the time and manner prescribed by the Plan Manager, Participants who would
      otherwise become eligible to make catch-up contributions may elect to make
      catch-up contributions for the upcoming Plan Year in any amount up to the
      limit prescribed by Code Section 414(v) for that year. If a catch-up
      eligible Participant first becomes eligible to participate in the Plan
      during a Plan Year, the Participant may elect to make catch-up
      contributions for the remainder of the Plan Year at such time and in such
      manner prescribed by the Plan Manager.

       

	 	 	
      (2)
	
      Upon
      a Participant’s election to make catch-up contributions, the applicable
      catch-up contribution limit for the Plan Year shall be applied to each
      payroll period for the Participant on a pro-rata basis.

 

	 	 	
      (3)
	
      Catch-up
      eligible Participants will be permitted to change their catch-up
      contribution elections at any time during a Plan Year on a prospective
      basis, with the remaining catch-up contribution limit available to the
      Participant for the Plan Year adjusted accordingly on a pro-rata basis for
      the remaining payroll periods in the Plan
Year.

 

	 	 	
      (4)
	
      Participants
      will not be permitted to make catch-up contributions during periods of
      hardship withdrawal suspension, as described in Section
      8.1(f)(7).

 

	 	 	
      (5)
	
      As
      of the end of each Plan Year, amounts deferred as catch-up contributions
      may be recharacterized as non-catch-up elective deferrals under the Plan
      in accordance with Section 414(v) of the Code and the regulations
      thereunder. Deferrals made under this Section 4.3(b) will remain
      characterized as catch-up contributions only if and to the extent such
      Deferrals would otherwise exceed one or more of the following limits
      determined on an annual basis: (i) the deferral limits set by an
      applicable statutory limit, such as Code Sections 402(g) and 415, (ii) the
      otherwise applicable pre-tax Deferral contribution limits under the Plan
      (as of January 1, 2003 fifteen percent of Eligible Earnings in the case of
      non-Highly Compensated Employees and seven percent of Eligible Earnings in
      the case of Highly Compensated Employees), or (iii) the limitations
      required by Section 12.10 of the Plan (and Code Section
      401(k)(3)).

 

	 	 	
      (6)
	
      Employer
      Contributions shall not be made with respect to amounts deferred as
      catch-up contributions under this Section 4.3(b) regardless of whether
      such amounts are later recharacterized as Deferrals under Section
      4.1.

13

	 	 	
      (7)
	
      The
      Plan Manager shall establish such rules as are necessary to coordinate the
      catch-up contribution limit under this Plan with all similar plans
      maintained by any Affiliate, in a manner consistent with Code Section
      414(v) and the regulations and other guidance issued
      thereunder.

4.4 Timing
of Contributions: All
Deferrals, Regular Contributions, and Additional Contributions shall be
contributed to the Trust by the Employer as soon as practical after amounts are
subject to payroll deduction, but in all events all such Deferrals and
Contributions shall be contributed to the Trust by the Employer in accordance
with the requirements set forth in regulations and other guidance issued by the
Department of Labor.

4.5 Changes
in Contributions:
Effective January 1, 1989, a Participant may change his contribution
election under Sections 4.1, 4.2, and 4.3 as of the first day of the Plan Year
which begins following the date the Plan Administrator receives a notice of
change. Notice of any such change shall be given on a form to be provided by the
Employer, signed by the Participant, and delivered to the Employer at least
thirty (30) days before the first Plan Year affected by the change. Effective
October 1, 2000, a Participant may change his contribution election under
Sections 4.1, 4.2, and 4.3 at any time by applying to make such change in the
manner prescribed by the Plan Administrator (including telephonic or electronic
application). Any such change shall become effective as soon as practicable
following the date the Participant applies to make such change, provided that
the effective date shall be the first day of a payroll period. 

4.6 Suspension of Contributions: A
Participant may suspend Deferrals, Regular Contributions or Additional
Contributions by giving notice on a form provided by the Employer at least ten
days before the start of the first payroll period affected by the suspension. On
any pay day on which a deduction would normally be made from a Participant’s
Eligible Earnings, the deduction will be automatically suspended without
notice if his net Eligible Earnings due on such pay day is insufficient to
permit the deduction to be made in full. 

A
Participant whose Deferrals, Regular Contributions or Additional Contributions
have been suspended may resume contributions by executing a new authorization
with his Employer. The authorization shall be effective as soon as it is
administratively feasible.

4.7 Rounding
of Amounts: Amounts
of payroll deductions may be rounded or determined on a bracket basis in a
manner determined by the Plan Manager for the purpose of facilitating
administration of the Plan.

14

4.8 Rollover
Contributions:

	 	
      (a)
	
      An
      Employee, without regard to whether the Employee is an Eligible Employee
      or whether the Employee has elected to participate in the Plan, may, with
      the approval of the Plan Manager, make a Rollover Contribution. Such
      Employee’s Rollover Contribution shall be paid to the Trustee as soon as
      practicable and shall be credited to his Account, in accordance with his
      designation (including Investment Fund designation), as of the date the
      Rollover Contribution is made. The Plan Manager is authorized to establish
      procedures to determine whether and the extent to which a Rollover
      Contribution may be made to the Plan.

	
      
	
      
	
      

	 	
      (b)
	
      The
      term “Rollover Contribution” means any distribution as provided in Code
      Section 402(c)(4), or any other provision of the Code which may permit
      rollovers to the Plan from time to time, from an eligible retirement plan
      as that term is defined in Code Section 402(c)(8).

	
      
	
      
	
       

	 	
      (c)
	
      Once
      accepted by the Trust, an amount rolled over pursuant to this Section 4.8
      shall be credited to the Employee’s “Rollover Contribution Account” under
      his Accounts, and thereafter, such Rollover Contributions shall be
      administered and invested in accordance with Article VI and subject to the
      distribution provisions set forth in Articles VIII. The limitations of
      Article XII shall not apply to Rollover Contributions. All Rollover
      Contributions shall be made in cash and shall be fully vested. No Employer
      Contributions shall be made with respect to Rollover
      Contributions.

 

15

ARTICLE
V. EMPLOYER CONTRIBUTIONS

 

5.1 Employer
Contributions: Subject
to the applicable limitations of Article XII, each Employer shall contribute,
out of current or accumulated earnings as determined under generally accepted
accounting principles and practices or from other sources of funds without
regard to current or accumulated profits, on behalf of each of the Participants
in its employ an amount equal to one hundred percent of all Deferrals and
Regular Contributions under the provisions of Sections 4.1 and 4.2, to the
extent such contributions, when combined, do not exceed six percent (6%) of
Eligible Earnings. Employer Contributions will be made as soon as practicable
after the end of each month. No Employer Contributions will be made with respect
to Additional Contributions pursuant to Section 4.3 or Rollover Contributions
pursuant to Section 4.8.

5.2 Corrective
Contributions/Reallocations: If, with
respect to a Plan Year, an administrative error results in a Participant’s
Accounts not being properly credited with the amounts of Deferrals, Regular
Contributions, Additional Contributions, Rollover Contributions, or Employer
Contributions, or earnings on any such amounts, corrective Employer
contributions or account reallocations may be made in accordance with this
Section. Solely for the purpose of placing any affected Participant’s Account in
the position that it would have been in if no error had been made, the Company
may make additional contributions to such Participant’s Accounts, or the Plan
Manager may reallocate existing Contributions among the Accounts of
affected Participants. 

16

ARTICLE
VI. PLAN INVESTMENTS

 

6.1 Investment
Funds: In the
sole discretion of the Plan Administrator, one or more funds (to be designated
as “Investment Funds”) shall be established in the Trust subject to the terms of
Appendix II.

6.2 Employee
Deferrals, Regular Contributions, Additional Contributions, and Rollover
Contributions: Effective
November 1, 1988 and for periods prior to January 1, 1999, all Deferrals,
Regular Contributions, Additional Contributions, and Rollover Contributions made
during any Plan Year shall be invested entirely in Common Stock. Effective
January 1, 1999, each Participant, as part of his election to make Deferrals,
Regular Contributions, Additional Contributions, and Rollover Contributions,
shall designate the Investment Fund in which such contributions, if any, shall
be invested. Effective January 1, 1999 and for periods prior to October 1, 2000,
the designation shall indicate that such contributions shall be invested either
100% in the Common Stock Fund or 100% in the Money Market Fund. Effective
October 1, 2000, the designation shall indicate, in whole percentage increments,
the Investment Funds that such contributions, if any, shall be invested. If a
Participant fails to designate the investment of such contributions, he shall be
deemed to have elected to have such contributions invested in the IRT Stable
Value Fund.

6.3 Change
in Investment Designation of Future Employee Deferrals, Regular Contributions,
Additional Contributions, and Rollover Contributions: A
Participant may change the Investment Fund into which any future Employee
Deferrals, Regular Contributions, Additional Contributions, and Rollover
Contributions are invested, by notifying the Trustee at any time and in the
manner prescribed by the Plan Manager (including, if such procedures are
authorized, telephonic or electronic notice). Effective for periods prior to
October 1, 2000, any change in the designated Investment Fund shall be such that
all such future contributions shall be invested either 100% in the Common Stock
Fund or 100% in the Money Market Fund. Effective October 1, 2000, any change in
the designation shall indicate, in whole percentage increments, the Investment
Funds that all such future contributions, if any, shall be invested. Any such
change in the designation of Investment Funds shall be effective as soon as
practicable after such notice is received by the Trustee.

6.4 Transfers
of Existing Employee Deferrals, Regular Contributions, Additional Contributions,
Employer Contributions and Rollover Contributions Among Investment
Funds: A
Participant may change the Investment Fund in which the existing balances of his
Employee Deferrals, Regular Contributions, Additional Contributions, Employer
Contributions (effective as of January 1, 2004), and Rollover Contributions are
invested by notifying the Trustee at any time in the manner prescribed by the
Plan Manager (including, if such procedures are authorized, telephonic or
electronic notice). The Participant may transfer all or part of his existing
balances in such percentages or dollar amounts as permitted by the Plan Manager
and as applied to all similarly situated Participants. Any such transfer of
amounts from one Investment Fund to another Investment  Fund shall be
effective as soon as practicable after the Participant notifies the
Trustee.

17

 

6.5 Employer
Contributions: Employer
Contributions under Article V shall be invested solely in the Common Stock Fund.
Effective as of January 1, 2004, a Participant shall be permitted to transfer
the existing balance of his Employer Contributions from the Common Stock Fund to
another Investment Fund, in accordance with Section 6.4.

6.6 Investments
in Common Stock Fund: 

	 	
      (a)
	
      All
      Deferrals, Regular Contributions, Additional Contributions, and Rollover
      Contributions which are to be invested in the Common Stock Fund and
      Employer Contributions shall be transferred to the Trustee for investment
      in the Common Stock Fund. The Trustee shall invest such Deferrals, Regular
      Contributions, Additional Contributions, Rollover Contributions, and
      Employer Contributions in Company Stock as directed by the Plan Manager as
      a named fiduciary of the Plan.

	
      
	
      
	
      

	 	
      (b)
	
      All
      amounts which are to be invested in the Common Stock Fund shall be pooled
      and so invested each month and shall be proportionately allocated to the
      Account of each Participant on whose behalf such purchase is
      made.

	
      
	
      
	
      

	 	
      (c)
	
      When
      the Plan Manager shall direct the Trustee to purchase shares of Common
      Stock, the Trustee shall purchase shares of Common Stock (as directed by
      the Plan Manager) in the open market or in privately negotiated
      transactions, or alternatively from SCANA Corporation holdings of
      authorized but unissued stock or of treasury stock (provided that SCANA
      Corporation agrees to sell such stock to the
Trustee).

	
      
	
      
	
      

	 	
      (d)
	
      Common
      Stock purchased by the Trustee shall be carried in the Participant’s
      Accounts at the cost thereof to the Trustee, after deducting taxes and
      brokerage commissions, if any. 

	
      
	
      
	
       

	 	
      (e)
	
      Effective
      August 3, 1992, the Trustee shall, if necessary (and unless directed
      otherwise by the Plan Manager), directly or via an agent, sell Participant
      shares in the open market on the NYSE in accordance with Article IX of the
      Plan to provide funds to borrowing Participants as loan
      disbursements.

 

        6.7 Dividends
on Common Stock: The
following provisions shall apply with respect to any cash dividends on shares of
Common Stock held in the ESOP portion of the Plan (the Common Stock Fund) that
are declared and paid on or after December 1, 1999:

18

	 	
      (a)
	
      Unless
      an Eligible Participant (as defined in subsection (b) below) makes a
      dividend retention election pursuant to subsection (b), all cash dividends
      paid on the
      shares of Common Stock held in a Participant’s or Inactive Participant’s
      Accounts shall be distributed directly to such individual as soon as
      administratively practicable following the date the dividends are paid to
      the Plan, but in no event later than 90 days after the end of the Plan
      Year in which the dividends are paid to the Plan.

       

	 	
      (b)
	
      Notwithstanding
      the provisions of subsection (a), each Participant and each Inactive
      Participant who is performing services for an Affiliate (each such
      Participant and Inactive Participant shall be referred to herein as an
      “Eligible Participant”) shall be entitled to make a dividend retention
      election under which any cash dividends paid on the shares of Common Stock
      held in the Eligible Participant’s Accounts shall be retained for
      investment in Common Stock. Each such Eligible Participant’s dividend
      retention election shall be made in the manner prescribed by the Plan
      Manager, including in the case of an Eligible Participant who is an active
      Participant, as part of his election to make Deferrals, Regular
      Contributions, Additional Contributions and Rollover Contributions
      pursuant to Section 3.2. An Eligible Participant’s dividend retention
      election shall remain in effect until changed by the Eligible Participant.
      An Eligible Participant may change his dividend retention election in the
      time and manner prescribed by the Plan Manager. A Participant may change
      his election by applying to make such change in the time and manner
      prescribed by the Plan Manager (including through telephonic or electronic
      application).

	
      
	
      
	
       

	 	
      (c)
	
      In
      addition to the election described in (b) above, effective January 1, 2002
      and as soon as administratively practicable thereafter, each Eligible
      Participant (as defined in (b) above) shall be entitled to make an
      additional dividend retention election under which the Eligible
      Participant may elect to have any cash dividends previously paid to the
      Plan during calendar year 2001 and retained for investment in Common Stock
      either distributed to such Eligible Participant no later than March 31,
      2002, or retained for investment in Common
Stock.

6.8 Uninvested
Cash: Subject
to the payment of cash dividends under Section 6.7 above, any uninvested cash in
the Account of a Participant or inactive Participant at the end of a Plan Year
may be carried over to the next Plan Year, and then invested in accordance with
the investment designation otherwise applicable under this Article
VI.

19

6.9 Diversification
of Amounts in the Common Stock Fund:

	 	
      (a)
	
      Notwithstanding
      any other provision of this Plan, and consistent with the requirements of
      Code Section 4975(e)(7) and the regulations thereunder, each “Qualified
      Participant” (as hereinafter defined) may direct, within the 90-day period
      following the close of each Plan Year during the Participant’s “Qualified
      Election Period” (as hereinafter defined), the distribution or
      reinvestment of up to:
      (i) 25% of the sum of the value of the Participant’s Accounts held in the
      Common Stock Fund (determined as of the last preceding Valuation Date)
      plus the amounts previously distributed or transferred from the employee
      stock ownership portion of the Plan pursuant to this subsection (a), less
      (ii) the amounts previously diversified (whether by transfer, distribution
      or otherwise) to meet the requirements of this subsection (a), within the
      time determined under subsection (b) below. For purposes of this
      subsection (a), if the Qualified Participant elects to receive a
      distribution of the amount described in the preceding sentence, the
      Qualified Participant may elect to receive such amount in a single sum in
      cash or in shares of Common Stock.

       

	 	 	
       

      With
      respect to the 25% limitation described in the preceding paragraph, a
      Qualified Participant may, within 90 days after the close of the last Plan
      Year in the Participant’s Qualified Election Period, direct the
      application of a percentage of up to 50% rather than
  25%.

	
      
	
      
	
      

	 	
       

      (b)
	
       

      Within
      180 days after the close of each Plan Year during the Qualified Election
      Period, the portion of a Qualified Participant’s Accounts held in the
      Common Stock Fund to be diversified under subsection (a) shall be
      distributed or reinvested, as directed by such Participant, and if
      distributed, shall be subject to the cash or shares election described in
      subsection (a). Any such distribution or reinvestment shall be derived
      from the Participant’s Accounts to the extent invested in the Common Stock
      Fund in the order set forth in the list below. Such amounts shall be not
      derived from any Account until the portion of all Accounts previously
      listed that are invested in the Common Stock Fund have been
      exhausted.

	
      
	
      
	
      

	 	 	
       

      (1)
	
       

      An
      amount equal to all or part of the Participant’s before-1987 Regular
      Contributions made to his Account under Sections 4.2 and 4.3, to the
      extent required to exhaust such amounts.

       

	 	 	
       

      (2)
	
       

      An
      amount equal to all or part of the remaining amounts allocated to the
      Participant’s Regular Contribution Account under Section 4.2 and
      4.3.

20

	 	 	
      (3)
	
      An
      amount equal to all or part of the amounts allocated to the Participant’s
      Rollover Contribution Account under Section 4.8.

       

	 	 	
      (4)
	
      An
      amount equal to all or part of the amounts allocated to the Participant’s
      Employer Contributions Account under Article V.

       

	 	 	
      (5)
	
      If
      the Participant has reached age 591⁄2, an amount equal to all or part of the
      amounts allocated to the Participant’s Deferral Account under Sections 4.1
      and 4.3.

       

	 	
      (c)
	
      For
      purposes of this Section 6.9, the terms “Qualified Participant” and
      “Qualified Election Period” shall have the following meanings: “Qualified
      Participant” means any Participant who attained age 55 and completed at
      least ten “years of participation.” “Years of participation” shall include
      only years of participation on and after December 1, 1999 (the original
      effective date of the employee stock ownership plan portion of the Plan).
      “Qualified Election Period” means the six Plan Year period beginning with
      the first Plan Year in which the individual first became a Qualified
      Participant.

 

21

ARTICLE
VII. INVESTMENT ACCOUNTS

 

7.1 Separate
Accounts: Separate
Accounts for each Participant for each Plan Year shall be set up to reflect the
form and source of contribution (Deferrals, Regular Contributions, Additional
Contributions, Rollover Contributions, and Employer Contributions). The Plan
Manager shall establish a separate Account for each Participant to which shall
be credited the Participant’s allocable share of:

	 	
      (a)
	
      Deferrals
      under Sections 4.1 and 4.3 (including any Qualified Nonelective
      Contributions treated as Salary Deferral Contributions under Section
      12.10(d)) made on his or her behalf and the earnings and losses thereon,
      which separate Account shall take into account gains, losses, withdrawals,
      and other credits or charges attributable to such amounts in accordance
      with the requirements of Treas. Reg. § 1.401(k)-1(e)(3) and any further
      guidance issued thereunder;

	
      
	
      
	
      

	 	
      (b)
	
      Regular
      Contributions under Sections 4.2 and 4.3 made by a Participant and the
      earnings and losses thereon; and

	
      
	
      
	
      

	 	
      (c)
	
      Rollover
      Contributions under Section 4.8 made by an Employee and the earnings and
      losses thereon; and

	
      
	
      
	
      

	 	
      (d)
	
      Employer
      Contributions under Article V (including any Qualified Nonelective
      Contributions treated as Employer Contributions under Section 12.11(c))
      made on his behalf and the earnings and losses
thereon.

Amounts
allocated to a Participant’s Accounts for a Plan Year may be consolidated with
amounts allocated for earlier Plan Years two years after the Plan Year has
ended.

7.2 Account
Information: 

	 	
      (a)
	
      Accounting: Shares
      of Common Stock shall be accounted for on the basis of both numbers of
      shares and cost of the shares to the Trustee. Notwithstanding anything to
      the contrary in the Plan, the fair market value of the Trust Fund shall be
      determined each Plan Year, as of the last day of the Plan
      Year.

 

	 	
      (b)
	
      Valuation:

22

	 	 	
      (1)
	
      Common
      Stock Fund: In accordance with the provisions of Article VI, shares of
      Common Stock are allocated to each Participant’s Accounts. The earnings
      and/or losses and increases/decreases in the fair market value of each
      Participant’s Account balance invested in the Common Stock Fund shall be
      determined as of each Valuation Date based on the number of 

      shares
      in the Participant’s Accounts multiplied by the price of those shares on
      the Valuation Date.

 

	 	 	
      (2)
	
      To
      the extent that Participants’ Accounts are invested in mutual funds or
      other assets for which daily pricing is available (“Daily Pricing Media”),
      all amounts contributed to the Trust Fund will be invested at the time of
      the actual receipt by the Daily Pricing Media, and the balance of each
      Account shall reflect the results of such daily pricing from the time of
      actual receipt until the time of
distribution.

 

	 	 	
      (3)
	
      To
      the extent any Participant’s Accounts are
      not invested in the Common Stock Fund or Daily Pricing Media,
      earnings and/or losses and increases/decreases in the fair market value of
      each Participant’s Account balance are allocated to Participants’ Accounts
      in proportion to
      their Account balances. Each Participant’s share of such earnings and/or
      losses will be that portion of the total net investment income or losses
      and realized and unrealized capital gains or losses of such Investment
      Fund which bears the same ratio to such total as the balance of his
      Account attributable to such Investment Fund as of the preceding Valuation
      Date.

       

	 	 	
      (4)
	
      The
      fair market value for the Trust Fund as a whole as of any Valuation Date
      shall be determined as the sum of the individual Participants’
      Accounts.

7.3 Applicable
Valuation Date: Whenever
a distribution or withdrawal by a Participant is made, the amount paid to the
Participant shall be based on the value of his or her Accounts as of the
Valuation Date determined in accordance with Article VIII. Whenever a loan to a
Participant is made, the amount of such loan shall be based on the value of his
or her Accounts as of the Valuation Date determined in accordance with Article
IX.

7.4 Fiduciary
Responsibility: The Plan
is intended to constitute a plan described in ERISA Section 404(c). To the
extent that a Participant exercises control over the assets in his Participant
Account, as determined under regulations prescribed by the Secretary of Labor,
neither the Company, any Employer, the Committee, the Plan Manager, the Trustee
nor any other fiduciary or designee shall be liable for any loss, or by reason
of any breach, which results from such Participant’s exercise of control and
investment direction. Neither the Company, any Employer, the Committee, the Plan
Manager, the Trustee nor any other fiduciary or designee who complies with the
standards set forth in Article XVII hereof shall be liable for any loss which
results
from investment performance under any of the Investment Funds including, but not
limited to, depreciation in the value of stock or other property held under any
of the Investment Funds. The Trustee and the Committee or their designees shall
provide information to Participants consistent with ERISA Section 404(c) and the
regulations and other guidance issued thereunder.

23

 

ARTICLE
VIII. WITHDRAWALS/DISTRIBUTIONS

 

8.1 Withdrawals
Before Termination of Employment:

A
Participant may elect at any time during the Plan Year to make withdrawals from
his Accounts in the order set forth in the lists below. Withdrawals shall be
made pro rata over all Investment Funds except where the Participant requests to
receive Common Stock.

	 	
      (a)
	
      Any
      withdrawals made
      from Accounts invested in Investment Funds other than the Common Stock
      Fund shall be made in the order set forth in the list below. Withdrawals
      may not be made from any Account until all Accounts previously listed have
      been exhausted.

 

	 	 	
      (1)
	
      An
      amount equal to all or part of the Participant’s before-1987 Regular
      Contributions made to his Account under Sections 4.2 and 4.3, to the
      extent required to exhaust such amounts; provided, however, that if the
      value of all amounts attributable to Regular Contributions plus earnings
      thereon is less than the net amount of before-1987 Regular Contributions,
      no more than such value may be withdrawn.

       

	 	 	
      (2)
	
      An
      amount equal to all or part of the remaining amounts allocated to the
      Participant’s Regular Contribution Account under Sections 4.2 and
      4.3.

       

	 	 	
      (3)
	
      An
      amount equal to all or part of the amounts allocated to the Participant’s
      Rollover Contribution Account under Section 4.8.

       

	 	 	
      (4)
	
      If
      the Participant has reached age 591⁄2, an amount equal to all or part of the
      amounts allocated to the Participant’s Deferral Account pursuant to
      Sections 4.1 and 4.3. The Participant, in application for such withdrawal,
      shall include evidence of the Participant’s age and a statement of other
      facts required by the Plan Manager.

	 	
      (b)
	
      Any
      withdrawals made from Accounts invested in the Common Stock Fund shall be
      made in the order set forth in the list below. Except as provided in
      Sections 8.1(e) and (f), such withdrawals may not be made from any Account
      until all Accounts previously listed have been exhausted.

       

	 	 	
      (1)
	
      An
      amount equal to all or part of the Participant’s before-1987 Regular
      Contributions made to his Account under Sections 4.2 and 4.3 to the extent
      required to exhaust such amounts; provided, however, that if the value of
      all amounts attributable to Regular Contributions plus earnings thereon is
      less than the net amount of before-1987 Regular Contributions, no more
      than such value may be withdrawn.

24

	 	 	
      (2)
	
      An
      amount equal to all or part of the remaining amounts allocated to the
      Participant’s Regular Contribution Accounts under Sections 4.2 and
      4.3.

       

	 	 	
      (3)
	
      An
      amount equal to all or part of the amounts allocated to the Participant’s
      Rollover Contribution Account under Section 4.8.

       

	 	 	
      (4)
	
      If
      the Participant is credited with at least 60 months of participation in
      the Plan, an amount equal to all or part of the amounts allocated to his
      Employer Contributions Account.

       

	 	 	
      (5)
	
      If
      the Participant is credited with less than 60 months of participation in
      the Plan, an amount equal to all or part of the amounts allocated to his
      Employer Contributions Account which have been so allocated for at least
      two years following the close of the Plan Year of
      contribution.

	 	
      (c)
	
      A
      Participant may at any time after reaching age 591⁄2 and after having
      exhausted the amounts described in Section 8.1(b)(1) through (4) elect to
      make withdrawals from his Deferral Account. The Participant, in
      application for such withdrawal, shall include evidence of the
      Participant’s age and a statement of any other facts required by the Plan
      Manager.

       

	 	
      (d)
	
      Tax
      Accounting:
      Notwithstanding any provision of the Plan to the contrary, for purposes of
      calculating a Participant’s tax liability for a withdrawal, the withdrawal
      shall be deemed to be made in the following order:

       

	 	 	
      (1)
	
      An
      amount equal to all or part of any before-1987 Regular Contributions
      allocated to the Participant’s Account.

       

	 	 	
      (2)
	
      An
      amount equal to all or part of any post-1986 Regular Contributions and all
      earnings on Regular Contributions allocated to the Participant’s
      Account.

	
      
	
      
	
      
	
      

	 	 	
      (3)
	
      An
      amount equal to all or part of any Rollover Contributions, Employer
      Contributions, Deferral amounts and all earnings on such amounts allocated
      to the Participant’s Account.

	 	
      (e)
	
      Hardship
      Withdrawals: A
      Participant may request a withdrawal from his Deferral Account in the
      order set forth in Section 8.1(g) if he suffers a hardship. Effective
      January 1, 1989, a hardship will be determined by the Plan Manager to
      exist if the withdrawal is necessary in light of an immediate and heavy
      financial need of the Participant, and if funds to alleviate such
      financial need are not reasonably available

25

	 	 	
      from
      other resources, including those assets of the Participant’s spouse and
      minor children (not to include any property held under the Uniform Gifts
      to Minors Act) that are reasonably available to the Participant. A
      withdrawal is deemed to be on account of an immediate and heavy financial
      need of the Participant and will be permitted under this Plan, only if the
      withdrawal is for:

	 	 	
      (1)
	
      Expenses
      for medical care described in Code Section 213(d) previously incurred by
      the Participant, the Participant’s spouse, or any dependents of the
      Participant (as defined in Code Section 152) or necessary for these
      persons to obtain medical care prescribed in Code Section
      213(d);

 

	 	 	
      (2)
	
      Costs
      directly related to the purchase of a principal residence for the
      Participant (excluding mortgage payments);

       

	 	 	
      (3)
	
      Payment
      of tuition, related educational fees, and room and board expenses for the
      next 12 months of post-secondary education for the Participant, or the
      Participant’s spouse, children, or dependents (as defined in Code Section
      152);

       

	 	 	
      (4)
	
      Payments
      necessary to prevent the eviction of the Participant from the
      Participant’s principal residence or foreclosure on the mortgage on that
      residence; or

       

	 	 	
      (5)
	
      Any
      other deemed need as may be authorized by the Commissioner of the Internal
      Revenue Service through the publication of Revenue Rulings, Notices, or
      other documents of general applicability.

       

	 	 	 	
      A
      financial need may be immediate and heavy even if it was reasonably
      foreseeable or voluntarily incurred by the Participant. The determination
      of whether any such immediate and heavy financial need exists shall be
      based upon a nondiscriminatory, objective review of all relevant facts and
      circumstances by the Plan Manager.

       

	 	
      (f)
	
      Hardship
      withdrawals shall be carried out under the following
  rules:

	 	 	
      (1)
	
      The
      withdrawal date and eligible withdrawal amount (excluding post 1988
      earnings) shall be fixed by the Plan Manager after application by the
      Participant under procedures approved by the Plan Manager.

       

	 	 	
      (2)
	
      The
      application for withdrawal shall include a statement of the facts causing
      financial hardship and any other facts required by the Plan Manager. The
      application will state that the Participant’s need can not be relieved
      through any other resources such as reimbursement or compensation by
      insurance or

26

	 	 	 	
      otherwise,
      reasonable liquidation of assets available to the Participant as noted in
      Subsection (e) above to the extent such liquidation would not cause an
      immediate and heavy financial need, stopping deferrals or after-tax
      employee contributions, or other distributions or nontaxable loans from
      plans maintained by the Employer or any other employer, or by borrowing
      from commercial sources on reasonable
terms.

	 	 	
      (3)
	
      The
      Plan Manager may delay, upon circumstances of reasonable cause, payment of
      an approved withdrawal to permit a special valuation, to permit
      liquidation of necessary assets or for other pertinent
      reasons.

	 	 	
      (4)
	
      Accounts
      shall be adjusted as of the last regular or special Valuation Date on or
      before the withdrawal unless the Plan Manager elects to have a special
      Valuation Date, which will then control.

       

	 	 	
      (5)
	
      The
      withdrawal may not be in excess of the amount of the immediate and heavy
      financial need of the Participant. The amount of an immediate and heavy
      financial need may include any amounts necessary to pay any federal,
      state, or local income taxes or penalties reasonably anticipated to result
      from the distribution.

       

	 	 	
      (6)
	
      The
      Participant must obtain all withdrawals, other than hardship withdrawals,
      and all nontaxable loans currently available under all plans maintained by
      the Employer, including nonqualified plans of the Employer, before a
      hardship withdrawal will be allowed. Notwithstanding the foregoing, if
      taking such a nontaxable loan would not alleviate the financial hardship
      for the Participant or if repayment of such a loan would cause the
      Participant to incur a financial hardship, taking of such a loan shall not
      be required.

       

	 	 	
      (7)
	
      After
      the Participant receives his hardship withdrawal, the Plan Manager will
      suspend his employee contributions to this Plan (to include all Deferrals,
      Regular Contributions and Additional Contributions) and shall cause his
      employee contributions to be suspended as to any other plan of deferred
      compensation, qualified or nonqualified (but not including any health or
      welfare benefit plan), maintained by the Employer for the suspension
      period indicated below, and the Participant will consent to this
      suspension on a form to be furnished by the Plan
  Manager.

27

	 	 	 	
      Effective
      for hardship withdrawals made before January 1, 2001, the suspension
      period referred to above shall be 12 months from the date of the
      withdrawal. Effective for hardship withdrawals made during calendar year
      2001, the suspension period referred to above shall be a period equal to
      the greater of 6 months or the number of months from the date of the
      withdrawal until January 1, 2002. Effective for hardship withdrawals made
      after December 31, 2001, the suspension period referred to above shall be
      6 months.

       

	 	 	
      (8)
	
      The
      Participant’s annual limitation on his Deferrals, as imposed by Code
      Section 402(g) and provided for in Section 12.9 of the Plan (Maximum
      Amount of Deferrals), for the Plan Year following the Plan Year in which
      he received his hardship withdrawal will be reduced by the amount of the
      Deferrals that he made during the Plan Year in which he received his
      hardship withdrawal.

       

	 	
      (g)
	
      Hardship
      Withdrawals shall be charged pursuant to the Participant’s election in the
      following order:

	 	 	
      (1)
	
      Withdrawal
      of amounts in Deferral Accounts under Sections 4.1 and 4.3 in Investment
      Funds other than the Common Stock Fund.

       

	 	 	
      (2)
	
      Withdrawal
      of amounts in Deferral Accounts under Sections 4.1 and 4.3 in the Common
      Stock Fund.

8.2 Frequency
of Withdrawal: A
Participant who has made a withdrawal under Sections 8.1(a), 8.1(b) or 8.1(c)
may not made another withdrawal under Sections 8.1(a), 8.1(b) or 8.1(c) until
after the expiration of the 180 calendar day period following the date of the
previous withdrawal.

8.3 Form
of Withdrawal: To the
extent a Participant’s Account is invested in Common Stock, withdrawals may be
in kind (Common Stock), except for (a) uninvested cash and (b) cash for
fractional shares in accordance with Section 8.10, or may in the alternative at
the election of the Participant be wholly in cash with respect to SCANA
Corporation Common Stock only, the cash alternative to be based on the Valuation
Price.

Effective
August 3, 1992 regarding the cash-option alternative described in the previous
paragraph, the Trustee shall, if necessary, at the direction of the Plan Manager
as a named fiduciary of the Plan, directly or via an agent, sell Participant
shares of Common Stock in the open market on the NYSE; the number of shares to
be sold in the open market and the authorization for such sale shall be
specified on form(s) approved by the Plan Manager, who shall directly or via
duly designated Company employee(s) review the same, and following approval,
direct the Trustee to 

28

carry out
the sale of shares indicated. The Participant shall bear all risk of a declining
market price to the time of sale, and the sales commissions and any
transactional taxes inherent to the sale and payable at such time shall be
charged to the Participant’s Account.

8.4 Notice
of Withdrawal: Notice
of withdrawal must be given by a Participant at least sixty (60) days (or such
lesser number of days as the Plan Manager may specify) prior to the date of
withdrawal. Such notice must be given to the Plan Manager on a form provided by
the Plan Manager (or its designee) for such purpose (including telephonic,
electronic or other means) specifying that the Participant elects a withdrawal
option set forth in Section 8.1. Subject to Section 8.14 (Direct Rollover
Distributions), payment pursuant to such notice shall be made as soon as
practicable upon receipt by the Employer. Notwithstanding the foregoing, no
withdrawal may be made under this Article VIII by a Participant during the
period in which the Committee is making a determination of whether a domestic
relations order affecting the Participant’s Account is a qualified domestic
relations order, within the meaning of Section 414(p) of the Code. Further,
if the Committee is in receipt of written notice that a qualified domestic
relations order affecting a Participant’s Account is being sought, it may
prohibit such Participant from making a withdrawal under this Article VIII until
a final determination with respect to such order has been made (or a
determination has been made that such order will not be submitted within a
reasonable period of time after the Committee was notified of such an order).
Finally, if the Committee is in receipt of a qualified domestic relations order
with respect to any Participant’s Account, it may prohibit such Participant from
making a withdrawal under this Article VIII until the alternate payee’s rights
under such order are satisfied.

 

DISTRIBUTIONS

8.5 Distribution
on Termination of Employment or Disability: In the
event of Termination of Employment of a Participant or the Participant’s
Disability, he shall be eligible to receive, in a single sum, the balance in his
entire Account, in cash or in kind, subject to the remaining provisions of this
Article VIII. Effective January 1, 2002, a Participant’s entire Account shall be
distributable on account of the Participant’s severance from employment
(regardless of when the severance from employment occurred). However, such a
distribution shall be subject to the other provisions of the Plan regarding
distributions, other than provisions that require a separation from service
before such amounts may be distributed.

8.6 Distribution
on Death: If a
Participant’s employment with an Employer is terminated by reason of death, or
the Participant’s death occurs after Termination of Employment and before a
distribution of his Account has been made, the entire balance credited to the
Participant’s Account shall be distributed to the Participant’s Beneficiary in a
single sum, in cash or in kind, as determined under Section 8.9. Such
distribution shall be made as soon as practicable after the Participant’s death
and in no event later than 60 days after the close of the Plan Year in which
that death occurs. In the case of distributions to surviving Spouses, the direct
rollover provisions of Section 8.14 shall apply.

29

8.7 Promptness
of Distribution: If the
market value of a Participant’s entire Account balance does not exceed $5,000
($3,500 for periods before January 1, 1998), determined as of the Valuation Date
coincident with or immediately following his Termination of Employment, a
distribution of the amounts allocated to his Account shall be made to him as
soon as practicable thereafter. If the market value of a Participant’s entire
Account balance exceeds $5,000 ($3,500 for periods before January 1, 1998),
determined as of the Valuation Date coincident with or immediately following his
Termination of Employment, a distribution of the amounts allocated to his
Account shall be made to him as soon as practicable after he consents to the
distribution of his Account. If such a Participant terminates employment before
age 65 and fails to consent to a distribution as soon as practicable after his
Termination of Employment, such a distribution may be made upon the
Participant’s request in which case, the distribution will be determined as of
the Valuation Date coincident with or immediately following such Participant
consent. In all events, however, for periods prior to June 1, 2004, distribution
shall be made as soon as practicable after the earlier of his attainment of age
65 or death and in no event later than 60 days after the Plan Year in which the
earlier of his attainment of age 65 or death occurs. For periods on or after
June 1, 2004, distributions shall be made no later than the April 1 following
the close of the calendar year in which the Participant attains age 70 1⁄2, in
accordance with Section 8.11. Effective with respect to distributions made after
December 31, 2001 on behalf of Participants who terminate employment after
December 31, 2001, for purposes of this Section 8.7, the value of a
Participant’s Account balance shall be determined without regard to that portion
of the Account balance that is attributable to Rollover Contributions (and
earnings allocable thereto). Notwithstanding the foregoing, all distributions
shall be made in accordance with the remaining provisions of this Article VIII.

8.8 Amount
of Distribution: A
distribution from a Participant’s Account shall include all amounts vested under
Article X.

8.9 Form
of Distribution:
Distributions may be in kind (SCANA Corporation Common Stock), except for (a)
amounts invested in Investment Funds other than the Common Stock Fund, (b)
uninvested cash, and (c) cash for fractional shares in accordance with Section
8.10, or may in the alternative at the election of the Participant (or of the
surviving spouse or other beneficiary in the event of death) be wholly in cash
with respect to Common Stock. Effective August 3, 1992, to effectuate the cash
alternative, the Trustee shall, at the direction of the Plan Manager as a named
fiduciary of the Plan, directly or via an agent, sell Participant shares in the
open market on the NYSE; the Participant shall bear all risk of a declining
market price to the time of sale, and the sales commissions and any
transactional taxes inherent to the sale and payable at such time shall be
charged to the Participant’s Account and paid from the sales proceeds, the net
amount being distributable. The number of shares to be sold in the open market
and the authorization for such sale shall be specified on form(s) approved by
the Plan Manager, who shall directly or via duly designated Company employee(s)
review the same, and following approval, direct the Trustee to carry out the
sale of shares indicated. However, in those circumstances where, subsequent to
termination processing due to receipt of amounts attributable to final
contributions and/or
allocated earnings, there are amounts that were not previously recognized, such
amounts shall be paid in cash.

30

    8.10 Fractional
Shares: No
fractional shares of Common Stock shall be distributed. The amount of cash for
fractional shares shall be based on the Valuation Price of the stock as of the
Date of Distribution.

    Any
fractional share associated with a Participant’s requested cash-option or
share-option Withdrawal or Distribution will either be valued and purchased by
the Trustee on behalf of the Plan at the appropriate Valuation Price, or,
depending upon the circumstances, may be sold on the NYSE in aggregation with
the fractional shares of other similarly situated Participants as part of some
whole number of shares with the net proceeds allocated among the respective
Participants.

    8.11 Limitations
on Commencement of Benefits:

 

	 	
      (a)
	
      Required
      Benefit Commencement -- In General.
      Unless the Participant elects otherwise, the payment of the Participant’s
      benefits will not commence later than the 60th day after the end of the
      Plan Year in which occurs the latest of the date when: (1) the Participant
      reaches age 65; (2) the tenth anniversary of the date the Participant
      commenced participation in the Plan; or (3) the Participant’s employment
      termination date.

	
      
	
      
	
      

	 	
      (b)
	
      Minimum
      Required Distributions After Age
701⁄2

	 	 	
      (1)
	
      Notwithstanding
      any other provision of the Plan, at the Participant’s election, each
      Participant’s entire interest in the Plan will be distributed, or minimum
      distribution of a Participant’s interest in the Plan will commence, no
      later than the April 1 following the calendar year in which the
      Participant reaches age 701⁄2, whether or not the Participant has then
      terminated employment. Prior to January 1, 1997, in the absence of any
      election by the Participant, minimum annual distributions will commence to
      be paid no later than the required beginning date. In accordance with Code
      Section 401(a)(9) and the regulations thereunder, a minimum distribution
      shall be in an annual minimum amount calculated with respect to the period
      of the life expectancy of the Participant.

    

	 	 	
      (2)
	
      Effective
      January 1, 1997, if a Participant shall attain age 701⁄2 on or after January
      1, 1997 or attained age 701⁄2 on or after January 1, 1996 and has not yet
      commenced receiving minimum required distributions in accordance with Code
      Section 401(a)(9) prior to January 1, 1997, such Participant shall
      commence receiving minimum required distributions in accordance with the
      requirements of the Code and the regulations and other guidance thereunder
      not later than the “required beginning date,” which shall be the
      April
      1 following the close of the later of (i) the calendar year in which the
      participant attains age 701⁄2, or (ii) the calendar year in which the
      Participant terminates employment.

      

31

	 	 	
      (3)
	
      Life
      expectancy will not be recalculated annually for purposes of determining
      required minimum distribution amounts for any such minimum distribution
      required to be made on and after the required beginning
    date.

 

	 	 	
      (4)
	
      Computation
      of a required minimum distribution amount shall take into account the
      applicable incidental benefit requirements of Code Section 401(a)(9) and
      the regulations thereunder.

       

	 	 	
      (5)
	
      Any
      other applicable provisions concerning minimum required distributions as
      are prescribed by Code Section 401(a)(9) and the regulations issued
      thereunder shall also be complied with and are hereby incorporated by
      reference.

       

	 	 	
      (6)
	
      In
      the event that a Participant dies after minimum required distributions
      have begun to be made, the balance credited to the Participant’s Account
      will be distributed in accordance with the procedure of Section 8.6 of the
      Plan.

       

  8.12 Employee
Transfers from the Employer to an Affiliate: A
transfer by a Participant from the Employer to an Affiliate which has not
adopted this Plan shall not affect his Participation under this Article VIII of
the Plan, nor, for purposes of the Plan, shall it be deemed to be a Termination
of Employment.

  8.13 Distributions
with Respect to Qualified Domestic Relations Orders:
Distributions may be made in accordance with the terms of a Qualified Domestic
Relations Order (“QDRO,” as defined by Code Section 414(p)), to an Alternate
Payee (as defined by Code Section 414(p)(8)) in the form of distribution
otherwise provided for under this Article VIII with respect to a Participant. In
all events, immediate distributions may be made pursuant to the terms of a QDRO
even before the Participant has attained “earliest retirement age,” as defined
in Code Section 414(p). Further, if the Committee is in receipt of written
notice that a QDRO affecting a Participant’s Account is being sought, it may
prohibit such Participant from commencing to receive a distribution until a
final determination with respect to such order has been made (or a determination
has been made that such order will not be submitted within a reasonable period
of time after the Committee was notified of such an order). The amount payable
to the Participant and to any other person other than the alternate payee named
in the order shall be adjusted accordingly. 

32

       8.14 Direct
Rollover Distributions:

	 	
      (a)
	
      At
      the request of a Participant, a surviving Spouse of a Participant, or a
      Spouse or former Spouse of a Participant that is an alternate payee under
      a Qualified Domestic Relations Order, under Section 8.14 (referred to as
      the “distributee”) and upon receipt of the direction of the Plan Manager
      or its designee, the Trustee shall effectuate a Direct Rollover
      Distribution of the amount requested by the distributee, in accordance
      with Section 401(a)(31) of the Code, to an Eligible Retirement Plan. Such
      amount may constitute all or any whole percent of any distribution from
      the Plan otherwise to be made to the distributee, provided that such
      distribution constitutes an Eligible Rollover Distribution. All Direct
      Rollover Distribu-tions shall be made in accordance with the following
      Subsections 8.14(b) through 8.14(g).

	
      
	
      
	
      

	 	
      (b)
	
      A
      distributee may not elect to have a Direct Rollover Distribution made to
      more than one Eligible Retirement Plan.

	
      
	
      
	
      

	 	
      (c)
	
      Direct
      Rollover Distributions shall be made, in accordance with such forms and
      pro-cedures as may be established by the Plan Manager, in shares of Common
      Stock otherwise distrib-utable under the Plan to the distributee, with
      cash for fractional shares of Common Stock, which shares shall be
      registered in a manner necessary to effectuate a Direct Rollover
      Distribution plus cash for any amounts invested in Investment Funds other
      than the Common Stock Fund; provided, however, that the distrib-utee may
      request that such Direct Rollover Distribution be made entirely in cash in
      the manner described above and in accordance with the terms of the Plan
      governing cash distributions in this Article
VIII.

	
      
	
      
	
      

	 	
      (d)
	
      No
      Direct Rollover Distribution shall be made unless the distributee
      furnishes the Plan Manager with such information as the Plan Manager shall
      require and deems to be sufficient.

	
      
	
      
	
      

	 	
      (e)
	
      A
      distributee may elect to divide an Eligible Rollover Distribution into two
      components, with one portion paid as a Direct Rollover Distribution and
      the remainder paid to the distributee, provided that such division of
      payments shall be permitted only if the amount of the Direct Rollover
      Distribution is at least equal to $500.

	
      
	
      
	
      

	 	
      (f)
	
      No
      Direct Rollover Distributions shall be permitted unless the amount of the
      distribution exceeds $200.

	 	
      (g)
	
      Direct
      Rollover Distributions shall be treated as all other distributions under
      the Plan and shall not be treated as a direct trustee-to-trustee transfer
      of assets and liabilities.

	
      
	
      
	
      

 

	
      
	
      8.15
	
      Definitions:
      For purposes of Section 8.14, the following terms have the following
      meanings:

	 	
      (a)
	
      The
      term “Direct Rollover Distribution” means a payment by the plan to the
      Eligible Retirement Plan specified by the
distributee.

	
      
	
      
	
      

	 	
      (b)
	
      The
      term “Eligible Rollover Distribution” means any distribution as provided
      in Code Section 402(c)(4), or any other provision of the Code which may
      permit rollovers to the Plan from time to
time.

	
      
	
      
	
      

	 	
      (c)
	
      The
      term “Eligible Retirement Plan” means an eligible retirement plan as that
      term is defined Code Section 402(c)(8).

	
      
	
      
	
      

33

ARTICLE
IX. LOANS TO PARTICIPANTS 

 

9.1 Amount
of Loan: Loans
from the Plan may be made to all Participants and Beneficiaries who are “parties
in interest” within the meaning of Section 3(14) of the Employee Retirement
Income Security Act of 1974, as amended. Such individuals are referred to herein
as “Eligible Borrowers.” An Eligible Borrower may request a loan from his
Deferral, Regular Additional, and Rollover Contribution Accounts, including
increments attributable to earnings thereon. The Plan Manager shall, in the
exercise of procedures, grant such loan request where the requested loan amount
when added to the outstanding balance (if any) of all other loans to the
Eligible Borrower from this Plan, does not exceed the lesser of:

	 	
      (a)
	
      $50,000
      reduced by the excess (if any) of the highest outstanding balance of loans
      from the Plan to the Eligible Borrower during the 1-year period ending on
      the day before the date on which the latest such loan is made, over the
      outstanding balance of loans from the Plan to the Eligible Borrower on the
      date on which the latest such loan is made,
or

	
      
	
      
	
      

	 	
      (b)
	
      one-half
      of the present value of the Eligible Borrower’s entire interest in the
      Plan,

except
that an Eligible Borrower’s application for a loan to acquire his principal
residence must evidence compliance with Code purposes and provisions as
indicated in Section 9.2(c).

9.2 Terms
of Loan: In
addition to such rules and procedures as the Plan Manager may adopt, all loans
shall comply with the following terms and conditions:

	 	
      (a)
	
      An
      application for a loan by an Eligible Borrower shall be made to the Plan
      Manager.

	
      
	
      
	
      

	 	
      (b)
	
      The
      period of repayment for any loan, except as set forth in Subsection (c)
      below, shall be arrived at by mutual agreement between the Plan Manager
      and the borrower. The terms of each loan shall require repayment on a
      substantially level amortization basis (with payments not less frequently
      than quarterly) over a period not to exceed five (5) years except as may
      otherwise be applicable with respect to an approved leave of absence
      without pay per Subsection (d) below or as otherwise provided in
      Subsection (c) below.

	
      
	
      
	
      

	 	
      (c)
	
      Notwithstanding
      the above, the period of repayment for any loan used to acquire the
      principal residence of an Eligible Borrower shall be arrived at by mutual
      agreement between the Plan Manager and the borrower. The applying Eligible
      Borrower shall provide such documentation as shall be required in the
      discretion of the Plan Manager to assure compliance with Code purposes for
      principal residence acquisition loans where the Eligible Borrower is
      seeking a loan term greater than five
      (5) years. The Plan Manager shall not approve such loan for a term greater
      than five (5) years where Code compliance is not
  evidenced.

34

	 	
      (d)
	
      Loan
      Payment Suspension During Approved Leave of Absence without
      Pay.

       

	 	 	
      (1)
	
      The
      level amortization requirement does not apply to a period of up to one
      year during which the Eligible Borrower is on a leave of absence without
      pay which has been properly approved by the Employer of the Eligible
      Borrower. However, interest shall continue to accrue during such period of
      nonpayment. Except as otherwise provided below, if the Eligible Borrower
      does not pay all of the interest accrued during the period of leave
      promptly upon returning to work, the loan shall be reamortized as a new,
      refinanced loan (which may constitute a second refinancing of the original
      loan as an exception to the one-refinancing rule of Subsection (j)(1)) to
      establish a new level payment schedule over the remaining period of the
      original loan term as reduced by the period of leave using the loan
      balance inclusive of the unpaid accrued interest amounts; if the Eligible
      Borrower does promptly upon returning to work pay all interest accrued
      during the period of leave, a revision of payment amounts and due dates to
      assure compliance with the applicable loan term limitation may yet require
      refinancing.

       

	 	 	
      (2)
	
      The
      period of a leave of absence without pay shall not extend the term of the
      loan, as based upon the date of the original loan, beyond the term
      limitations noted with respect to refinancing Subsection (j)(3)(C). Thus,
      in the circumstance where it is reasonably anticipated that the period of
      a leave of absence without pay would terminate at, after or within 6
      months before the expiration of the applicable loan term limitation, the
      Eligible Borrower will be required to continue making payments according
      to the initial level amortization schedule during the period of
      leave.

       

	 	
      (e)
	
      Each
      loan shall be made against collateral which must include, but need not be
      limited to, that portion of the borrower’s Deferral, Regular, Additional
      and Rollover Contribution Accounts to the maximum extent of 50 percent of
      his entire interest in the Plan supported by the borrower’s collateral
      promissory note payable to the Plan.

	
      
	
      
	
      

	 	
      (f)
	
      Each
      loan shall bear interest at a reasonable rate established by the Plan
      Manager. In determining such interest rate, the Plan Manager shall take
      into consideration interest rates being charged by banks or other
      financial institutions for comparable loans at the time the loan is
      made.

35

	 	
      (g)
	
      The
      minimum loan amount shall be determined by the Plan Manager but shall not
      be less than $500.

	
      
	
      
	
      

	 	
      (h)
	
      Repayment
      of loans shall be made by payroll deduction. An Eligible Borrower waives
      any right to discontinue payroll deductions for loan payment purposes
      until the promissory note is paid in full. Notwithstanding the foregoing,
      an Eligible Borrower may prepay the entire amount due under the loan at
      any time without penalty; partial prepayments are not
    allowed.

	
      
	
      
	
      

	 	
      (i)
	
      Effective
      August 3, 1992, an Eligible Borrower may have two (2) loans from this Plan
      outstanding at a time, one (1) of which may be a loan for the acquisition
      of the Eligible Borrower’s principal residence which has a term greater
      than five (5) years.

	
      
	
      
	
      

	 	
      (j)
	
      Effective
      for loans made on or after August 3, 1992, and prior to October 1,
      2000:

       

	 	 	
      (1)
	
      Each
      loan may be refinanced one (1) time after thirteen (13) scheduled payments
      have been made, except as otherwise provided in Subsection
      (d)(1).

       

	 	 	
      (2)
	
      Loans
      made prior to August 1, 1992 that have previously been refinanced under
      Plan rules applicable at the time will not be eligible for refinancing on
      or after August 3, 1992.

       

	 	 	
      (3)
	 	
      (A)
	
      Loan
      refinancing will not extend the term of the original loan, calculated from
      the original date of the loan, so as to exceed the five (5) year term
      limitation applicable to loans other than to a loan used to acquire the
      principal residence of the Eligible
Borrower.

	
      
	
      
	
      
	
      
	
      

	 	 	 	 	
      (B)
	
      The
      refinancing of a loan used to acquire the principal residence of an
      Eligible Borrower will not extend the term of the original loan,
      calculated from the original date of the
loan.

	
      
	
      
	
      
	
      
	
      

	 	 	
      (4)
	 	
      (A)
	
      (i)
	
      Refinancing
      shall not require that the Eligible Borrower borrow any additional amount,
      except as is inherent in the reamortization of a loan to include unpaid
      interest following an approved leave of absence without pay per Subsection
      (d)(1) above.

	 	 	 	 	 	
      (ii)
	
      Effective
      December 1, 1995, refinancing shall not be permitted for the purposes of
      borrowing an additional amount.

	
      
	
      
	
      
	
      
	
      
	
      

36

	 	 	 	 	
      (B)
	
      The
      refinancing of a loan used to acquire the principal residence of an
      Eligible Borrower shall not involve the borrowing of any additional
      amount, except as is inherent in the reamortization of a loan to include
      unpaid interest following an approved leave of absence without pay per
      Subsection (d)(1) above.

       

    Effective
October 1, 2000, no additional refinancings of outstanding loans shall be
permitted.

	 	
      (k)
	
      Loan
      proceeds shall be derived from the Participant’s Accounts and Investment
      Funds in the order set forth in the list below. Such proceeds shall be not
      derived from any Account until all Accounts previously listed have been
      exhausted.

	 	 	 	
      (1)
	
      An
      amount equal to all or part of the amounts allocated to the Participant’s
      Deferral Account under Sections 4.1 and 4.3 and invested in Investment
      Funds other than the Common Stock Fund.

	 	
      
	
      

	 	 	 	
      (2)
	
      An
      amount equal to all or part of the amounts allocated to the Participant’s
      Deferral Account under Sections 4.1 and 4.3 and invested in the Common
      Stock Fund.

       

	 	 	 	
      (3)
	
      An
      amount equal to all or part of the amounts allocated to the Participant’s
      Rollover Contribution Account under Section 4.8 and invested in Investment
      Funds other than the Common Stock Fund.

       

	 	 	 	
      (4)
	
      An
      amount equal to all or part of the amounts allocated to the Participant’s
      Rollover Contribution Account under Section 4.8 and invested in the Common
      Stock Fund.

       

	 	 	 	
      (5)
	
      An
      amount equal to all or part of the amounts allocated to the Participant’s
      Regular Contributions Account under Sections 4.2 and 4.3 and invested in
      Investment Funds other than the Common Stock Fund.

       

	 	 	 	
      (6)
	
      An
      amount equal to all or part of the amounts allocated to the Participant’s
      Regular Contributions Account under Sections 4.2 and 4.3 and invested in
      the Common Stock Fund.

Effective
for all repayments of new and existing Plan loans on and after January 1, 1999,
all repayments of Plan loans, including interest, shall be invested in the
Investment Funds in accordance with the Participant’s current investment
election. 

37

	 	
      (l)
	
      To
      the extent the requested loan is derived from amounts invested in the
      Common Stock Fund, a
      whole-share amount from his Account as equivalent to, without exceeding,
      the requested loan amount as possible, shall be sold in the open market on
      the NYSE by or on behalf of the Trustee, at the direction of the Plan
      Manager, after which the proceeds shall be treated as the loan amount, and
      shall be so indicated in the promissory note signed by the Eligible
      Borrower. The Eligible Borrower shall bear all risk of a declining market
      price to the time of sale, and the sales commissions and any transactional
      taxes inherent to the sale and payable at such time shall be charged to
      the Participant’s Account. The number of shares to be sold in the open
      market and the authorization for such sale shall be specified on form(s)
      approved by the Plan Manager, who shall directly or via duly designated
      Company employee(s) review the same, and following approval, as a named
      fiduciary of the Plan, direct the Trustee to carry out the sale of shares
      indicated.

       

	 	
      (m)
	
      Upon
      Termination of Employment or death, the outstanding balance of the loan
      plus interest due must be repaid in full before any distribution will be
      made to the Eligible Borrower or the Eligible Borrower’s Beneficiary. In
      the absence of such repayment, the value of the Eligible Borrower’s
      Account shall be reduced by the amount outstanding on the loan and the net
      amount shall be distributed to the Eligible Borrower or Beneficiary. The
      Eligible Borrower’s consent to the loan shall be treated as a consent to a
      reduction in his Account balance in the event of a failure to repay such
      loan. The amount of such Account adjustment shall be treated as a
      distribution under the Plan. Under no circumstances, however, shall any
      unpaid loan be charged against an Eligible Borrower’s Account so long as
      he remains employed by the Employer unless a distribution of Deferrals
      could otherwise be made under Section 401(k) of the Code and the
      regulations issued thereunder.

       

	 	
      (n)
	
      Any
      scheduled loan payment shall be regarded as delinquent upon the 15th day
      following the due date. If substantially level repayments of an Eligible
      Borrower’s loan are not made at least quarterly, such loan shall be
      treated as in default and the entire amount outstanding on such loan shall
      become immediately due and payable. In no event, however, shall a
      foreclosure on such loan (by reduction of the Eligible Borrower’s Account
      balance) occur earlier than the time permitted for distributions under
      Section 401(k) of the Code and the regulations issued thereunder. The
      foregoing provisions shall not apply during the period of suspension of
      loan payments during an Employer approved leave of absence without pay
      which satisfies the provisions of Subsection (d)
above.

	
      
	
      
	
      

38

	 	
      (o)
	
      Notwithstanding
      anything herein to the contrary, no loans may be made under this Article
      IX by an Eligible Borrower during the period in which the Committee is
      making a determination of whether a domestic relations order affecting the
      Eligible Borrower’s Account is a qualified domestic relations order,
      within the meaning of Section 414(p) of the Code. Further, if the
      Committee is in receipt of written notice that a qualified domestic
      relations order affecting an Eligible Borrower’s Account is being sought,
      it may prohibit such Eligible Borrower from making a loan under this
      Article IX until a final determination with respect to such order has been
      made (or a determination has been made that such order will not be
      submitted within a reasonable period of time after the Committee was
      notified of such an order). If the Committee is in receipt of a qualified
      domestic relations order with respect to any Eligible Borrower’s Account,
      it may prohibit such Eligible Borrower from making a loan under this
      Article IX until the alternate payee’s rights under such order are
      satisfied. A domestic relations order shall not be qualified if it
      attempts to assign to an alternate payee an amount in excess of the
      non-loaned portion of any Participant’s Account. No alternate payee shall
      be eligible for a loan under this Plan unless the alternate payee
      otherwise qualifies as an Eligible Borrower as defined in Section
      9.1.

	
      
	
      
	
       

	 	
      (p)
	
      Loan
      repayments will be suspended under the Plan as permitted under Section
      414(u) of the Code.

9.3 Commencement
of Loans: No loans
shall be made under this Article prior to
January 1, 1987.

9.4 Employee
Transfers from the Employer to an Affiliate: A
transfer by an Eligible Borrower from the Employer to an Affiliate which has not
adopted this Plan shall not affect his Participation under this Article IX of
the Plan, nor, for purposes of the Plan, shall it be deemed to be a Termination
of Employment.

9.5 Specific
Information: The Plan
Manager must adopt, announce, and publish as part of this Plan, additional rules
on borrowing under the Plan that are not inconsistent with the provisions of the
Plan and this Section 9. These rules on the administration of this Plan’s loan
program must include rules and provisions on:

	 	
      (a)
	
      the
      persons or positions authorized to assist in the administration of the
      loan program;

	
      
	
      
	
      

	 	
      (b)
	
      the
      procedure for applying for loans;

	
      
	
      
	
      

	 	
      (c)
	
      the
      basis on which loans will be approved or
denied;

 

	 	
      (d)
	
      the
      limitations (if any) on the types and amounts of loans
      offered;

	
      
	
      
	
      

	 	
      (e)
	
      the
      procedure for determining a reasonable rate of
interest;

	
      
	
      
	
      

	 	
      (f)
	
      the
      types of collateral that may secure a loan;
and

	
      
	
      
	
      

	 	
      (g)
	
      the
      events that constitute a default and the steps that will be taken to
      preserve Plan assets in the event of such
default.

	
      
	
      
	
      

39

ARTICLE
X. VESTING

 

10.1 Vesting: A
Participant’s Deferral, Regular, Additional and Rollover Contribution Accounts
(and earnings thereon) shall be fully vested and nonforfeitable at all times.
Employer contributions made under Article V with respect to any Plan Year and
earnings thereon shall be fully vested and nonforfeitable at all
times.

10.2 Employee
Transfers from the Employer to an Affiliate: A
transfer by a Participant from the Employer to an Affiliate which has not
adopted this Plan shall not affect his participation under this Article X of the
Plan, nor, for purposes of the Plan, shall it be deemed to be a Termination of
Employment.

40

ARTICLE
XI. FORFEITURES

 

11.1 Termination
of Employment: Unless
vested under Article X, Employer Contributions and earnings thereon shall be
forfeited upon Termination of Employment.

11.2 Repayments: A
reemployed Participant who received a distribution from the Plan as a result of
a Termination of Employment and forfeited any Employer Contributions on account
of such prior distribution (based on the vesting requirements in effect prior to
July 1, 1989), may repay the full amount of the distribution provided the
Participant is reemployed before incurring five consecutive Breaks in Service
and repays the distribution within five years of reemployment. All repayments
and forfeitures shall be credited to the Participant’s Regular Contribution
Account under Section 4.2 for the year of repayment. All repayments shall be
made in accordance with rules adopted by the Plan Manager. 

11.3 Lost
Participants or Beneficiaries: If a
Participant or Beneficiary cannot be located by reasonable efforts of the Plan
Manager within a reasonable period of time after the latest date such benefits
are otherwise payable under the Plan, the amounts in the Participant’s Account
shall be forfeited; provided, however, that such forfeited amount shall be
restored (without earnings) if, at any time, the Participant or Beneficiary who
was entitled to receive such benefit when it first became payable shall, after
furnishing proof of their identity and right to make such claim to the Plan
Manager, filed a request for such benefit with the Plan Manager. 

11.4 Application
of Forfeitures: All
amounts which are forfeited under this Article shall be applied to reduce any
subsequent contributions of the Employer by which the Participant is employed at
the time of the forfeiture. If the Plan is terminated or if Employer
Contributions are completely discontinued, forfeitures shall be credited ratably
to the Accounts of all Participants at the time of termination or discontinuance
of contributions. In all cases, forfeitures shall be so applied no later than as
of the end of the Plan Year in which the forfeiture occurs.

41

ARTICLE
XII. LIMITATIONS ON CONTRIBUTIONS AND BENEFITS

 

12.1 Definition
of Annual Additions: For
purposes of the Plan, Annual
Addition shall
mean the amount allocated to a Participant’s Account during the Limitation Year
that constitutes:

	 	
      (a)
	
      Employer
      Contributions,

       

	 	
      (b)
	
      Employee
      Contributions

       

	 	
      (c)
	
      Forfeitures,
      and

       

	 	
      (d)
	
      Amounts
      described in Sections 415(l)(1)
      and 419A(d)(2) of the Code.

12.2 Maximum
Annual Addition: 

	 	
      (a)
	
      The
      maximum Annual Addition that may be contributed or allocated to a
      Participant’s Account under the Plan for any Limitation Year shall not
      exceed the lesser of:

       

	 	 	
      (1)
	
      the
      Defined Contribution Dollar Limitation, or

       

	 	 	
      (2)
	
      25
      percent of the Participant’s Compensation, as defined in Section
      12.4.

       

	 	
      (b)
	
      Anything
      to the contrary herein notwithstanding, this subsection 12.2(b) shall be
      effective for Limitation Years beginning after December 31, 2001 and
      modifies the rules in this Section 12.2 for such Limitation Years. The
      Annual Additions that may be contributed or allocated to the Participant’s
      Account under the Plan for any Limitation Year shall not exceed the lesser
      of:

	 	 	
      (1)
	
      $40,000,
      as adjusted for increases in the cost-of-living under Section 415(d) of
      the Code; or

       

	 	 	
      (2)
	
      100
      percent of the Participant’s Compensation as defined in Section 12.4 for
      such Limitation Year.

   

12.3 Limitation
on Annual Additions: If,
notwithstanding the foregoing provisions of Section 12.2, the limitations with
respect to Annual Additions prescribed hereunder are exceeded with respect to
any Participant and such excess arises as a consequence of the allocation of
forfeitures, a reasonable error in estimating the Participant’s compensation, a
reasonable error in determining the amount of Deferrals that may be made with
respect to any individual under the limits of Code Section 415, or under other
limited facts and circumstances that the Internal Revenue Service approves, the
excess amounts attributable to Deferrals may be returned to the affected
Participant to the extent necessary to reduce the excess amounts in the
Participant’s Accounts. Such returned amounts shall not be taken into account in
applying the limitations of Section 12.10. 

42

	 	 (a)	 

       To the extent excess amounts remain in the
      Participant’s Accounts, so much of the Participant’s Regular Contributions
      under Sections 4.2 and 4.3 which cause the Participant’s Accounts to
      exceed the maximum Annual Additions shall be returned to the
      Participant.

	
      
	
      (b)
	
      To
      the extent excess amounts remain in the Participant’s Accounts, such
      excess shall be utilized to reduce future Employer Contributions on behalf
      of the Participant for the next succeeding Limitation Year and succeeding
      Limitation Years as necessary. If the Participant is no longer employed in
      such a succeeding Limitation Year, such excess amounts will be held
      unallocated in a suspense Account which shall be used to reduce future
      Employer Contributions on behalf of the other Participants entitled to an
      allocation.

	
      
	
      (c)
	
      Any
      amount returned to a Participant pursuant to Section 12.3(a) shall be
      withdrawn first from any amounts invested in Investment Funds other than
      the Common Stock Fund and then, if necessary, from the Common Stock
      Fund.

12.4 Definitions: For
purposes of Section 12.2:

	
      
	
      (a)
	
      Defined
      Contribution Dollar Limitation
      shall mean $30,000, as adjusted for increases in the cost of living
      pursuant to Section 415(d) of the Code.

	
      
	
      (b)
	
      Compensation
      shall mean, for limitation years beginning before January 1, 2001, wages
      within the meaning of Section 3401(a) of the Code (without regard to any
      rules under Section 3401(a) that limit the remuneration included in wages
      based on the nature or location of the employment or the services
      performed (such as the exception for agricultural labor in Section
      3401(a)(2)) and all other payments of compensation to an Employee by the
      Company (in the course of the Company’s trade or business) for which the
      Company is required to furnish the Employee a written statement under
      Sections 6401(d), 6051(a)(3) and 6052 of the Code (a Form W-2), and
      effective for Limitation Years beginning on and after January 1, 1998, all
      amounts currently not included in the Employee’s gross income by reason of
      Sections 125, 132(f)(4) and 402(e)(3) of the Code. For
      purposes of this Section for limitation years beginning on or after
      January 1, 2001, the term “Compensation” shall include all forms of
      remuneration described in Treas. Reg. Section 1.415-2(d)(2) plus any
      elective deferrals (as defined in Code Section 402(g)(3)), any amounts
      that are not includible in the gross income of the Participant by reason
      of Code Section 125, and amounts received as a qualified transportation
      fringe under Code Section 132(f), and shall exclude all forms of
      remuneration described in Treas. Reg. Section
    1.415-2(d)(3).

43

	
      
	
      (c)
	
      Limitation
      Year
      shall mean the Plan Year. 

12.5 Special
Rules:

	 	
      (a)
	
      The
      Compensation limitation referred to in Section 12.2(a)(2) or 12.2(b)(2)
      shall not apply to:

	 	 	
      (1)
	
      Any
      contribution for medical benefits (within the meaning of Section
      419A(f)(2) of the Code) after separation from service which is otherwise
      treated as an Annual Addition, or

       

	 	 	
      (2)
	
      Any
      amount otherwise treated as an Annual Addition under Section
      415(l)(1)
      of the Code.

       

	 	
      (b)
	
      Recomputation
      Not Required. The Annual Addition for any Limitation Year beginning before
      January 1, 1987 shall not be recomputed to treat all Employee
      Contributions as an Annual Addition.

	
      
	
      
	
      

	 	
      (c)
	
      Adjustment
      of Defined Benefit Plan Fraction. If the Plan satisfied the applicable
      requirements of Section 415 of the Code as in effect for all Limitation
      Years beginning before January 1, 1987, an amount shall be subtracted from
      the numerator of the defined benefit plan fraction (not exceeding such
      numerator) as prescribed by the Secretary of the Treasury so that the sum
      of the defined benefit plan fraction and defined contribution plan
      fraction computed under Section 415(e)(1) of the Code (as revised by this
      Section) does not exceed 1.0 for such Limitation
Year.

12.6 Limitation
of Benefits and Contributions:

	 	
      (a)
	
      Effective
      for Limitation Years beginning prior to January 1, 2000, if an Employee is
      or was a Participant in one or more defined benefit plans and one or more
      defined contribution plans maintained by the Employer, the sum of the
      Defined Benefit Plan Fraction and his Defined Contribution Plan Fraction
      (as defined herein) shall not exceed 1.0 for any year. If the sum of the
      Defined Benefit Plan Fraction and the Defined Contribution Plan Fraction
      shall exceed 1.0 in any year for any Participant in this Plan, the
      Employer shall adjust the numerator of the Defined Benefit Plan Fraction
      so that the sum of the Defined Benefit Plan Fraction and the Defined
      Contribution Plan Fraction shall not be in excess of 1.0 in any year for
      such Participant in accordance with the provisions set forth above,
      specifically incorporated by reference
thereto.

	
      
	
      
	
      

44

	 	
      (b)
	
      For
      the purpose of this section, the term “Defined Benefit Plan Fraction” for
      any year shall mean a fraction, the numerator of which is the projected
      annual benefit payable to a Participant as of the close of the then
      current year under all plans maintained by the Employer and the
      denominator of which is the lesser of:

	
      
	
      
	
      

	 	 	
      (1)
	
      The
      product of 1.25 multiplied by the maximum dollar limitation for the Plan
      Year concerned as provided under Internal Revenue Code Section 415, or
      

       

	 	 	
      (2)
	
      The
      product of 1.4 multiplied by the applicable percentage of compensation
      limit as defined for this purpose under Internal Revenue Code Section
      415.

       

	 	
      (c)
	
      The
      term “Defined Contribution Plan Fraction” for any year shall mean a
      fraction the numerator of which is the aggregate amount of annual
      additions made to a Participant’s Accounts under all plans maintained by
      the Employer as of the close of the then current year and the denominator
      of which is the sum of the lesser of the following amounts determined for
      such year and for each prior Year of Service with the
      Employer:

       

	 	 	
      (1)
	
      The
      product of 1.25 multiplied by the maximum dollar limitation for the Plan
      Year concerned as provided under Internal Revenue Code Section 415,
      or

       

	 	 	
      (2)
	
      The
      product of 1.4 multiplied by the applicable percentage of Compensation
      limit as defined for this purpose under Internal Revenue Code Section
      415.

12.7 Transitional
Rule: At the
Committee’s election, with respect to any year ending after December 31, 1982,
the amount taken into account in determining the Defined Contribution Plan
Fraction with respect to each Participant for all years ending before January 1,
1983, shall be an amount equal to the product of (a) and (b), where:

	 	
      (a)
	
      Is
      the Defined Contribution Plan Fraction in effect for the Plan Year ending
      in 1982, and

	
      
	
      
	
      

	 	
      (b)
	
      Is
      the Transition Fraction.

“Transition
Fraction” means a fraction the numerator of which is the lesser of $51,874 or
1.4 multiplied by 25% of the Compensation of the Participant for the year ending
in 1981, and the denominator of which is the lesser of $41,500 or 25% of the
Compensation of the Participant for the year ending in 1981. 

If the
plan is a Top-Heavy Plan, as defined by the Tax Equity and Fiscal Responsibility
Act of 1982, then $41,500 shall be substituted for $51,874 in the numerator of
the Transition Fraction. 

45

12.8 Effective
Date: The
provisions of the foregoing Sections 12.1 through 12.7 shall become effective
for Plan Years beginning on and after January 1, 1987.

12.9 Maximum
Amount of Deferrals:
Effective January 1, 1987:

	 	
      (a)
	
      In
      no event shall the aggregate of Deferrals under Section 4.1 (including
      Additional Contributions made as Deferrals under Section 4.3(a)) and such
      other elective deferrals as defined in Section 402(g)(3) of the Code made
      on a Participant’s behalf under the Plan and all other qualified cash or
      deferred arrangements maintained by the Company or any Affiliate with
      respect to any calendar year exceed the dollar limit in effect with
      respect to such year in accordance with Section 402(g)(5) of the Code and
      the regulations thereunder. Notwithstanding the foregoing, the Plan
      Manager shall be empowered to prescribe such nondiscriminatory rules as it
      deems necessary or advisable to facilitate the ease of administration of
      this limit, including but not limited to, permitting more frequent changes
      in contribution rates than are otherwise permitted under Section
      4.5.

	
      
	
      
	
      

	 	
      (b)
	
      Notwithstanding
      any other provision of the Plan, if the aggregate of Deferrals (including
      Additional Contributions made as Deferrals under Section 4.3(a)) and such
      other elective deferrals as defined in Section 402(g)(3) of the Code made
      on a Participant’s behalf under the Plan and all other qualified cash or
      deferred arrangements maintained by the Company or any Affiliate with
      respect to any calendar year exceed the dollar limit in effect with
      respect to such year in accordance with Section 402(g)(5) of the Code and
      the regulations thereunder, the Excess Deferral (as hereinafter defined)
      and earnings thereon shall be distributed to the Participant as soon as
      practicable after the Plan Manager determines that the Excess Deferral was
      made, but no later than the April 15 of the year following the calendar
      year in which the Excess Deferral arose. Any amount returned to a
      Participant pursuant to this Section 12.9(b) shall be withdrawn first from
      any amounts invested in Investment Funds other than the Common Stock Fund,
      and then, if necessary, from the Common Stock
Fund.

	
      
	
      
	
      

	 	
      (c)
	
      Notwithstanding
      any other provision of the Plan, if the aggregate of Deferrals (including
      Additional Contributions made as Deferrals under Section 4.3(a)) and such
      other elective deferrals as defined in Section 402(g)(3) of the Code made
      on a Participant’s behalf under any other qualified cash or deferred
      arrangement not maintained by the Company or any Affiliate with respect to
      any calendar year exceed
      the dollar limit in effect with respect to such year in accordance with
      Section 402(g)(5) of the Code and the regulations thereunder, the Excess
      Deferrals (as hereinafter defined) and earnings allocable thereto may be
      distributed no later than April 15 of the calendar year following the
      calendar year of the deferral, to Participants who claim such allocable
      Excess Deferrals for the preceding calendar
year.

 

46

	 	
      (d)
	
      For
      purposes of this Section 12.9, “Excess Deferrals” shall mean the amount of
      “elective deferrals” (within the meaning of Section 402(g)(3) of the Code)
      for a calendar year that are in excess of the applicable dollar limitation
      under Section 402(g) of the Code and are allocable to this
      Plan.

	
      
	
      
	
       

	 	
      (e)
	
      For
      purposes of Section 12.9(c), a Participant’s claim shall be in writing;
      shall be submitted to the Plan Manager no later than March 1 of the
      calendar year following the calendar year in which the Excess Deferrals
      were contributed; shall specify the Participant’s Excess Deferrals for the
      preceding calendar year; and shall be accompanied by the Participant’s
      written statement that if such amounts are not distributed, such Excess
      Deferrals, when added to amounts deferred under other plans or
      arrangements described in Sections 401(k), 408(k), 403(b) or 501(c)(18) of
      the Code for the calendar year, exceeds the limit imposed on the
      Participant under Section 402(g) of the Code for such calendar year. In
      the absence of such written notice, the amount of such Excess Deferrals
      shall be subject to all limitations on withdrawals and distributions
      applicable to Deferrals.

 

	 	
      (f)
	
      The
      amount of Excess Deferrals that may be distributed under this Section 12.9
      with respect to any Participant for any calendar year shall be reduced by
      the amount of any Excess Deferral Contributions previously distributed or
      recharacterized pursuant to Section 12.10, if any, for the Plan Year, in
      accordance with regulations issued under Section 402(g) of the Code. The
      Excess Deferrals distributed to a Participant with respect to a year shall
      be adjusted for earnings and losses for the Plan Year in accordance with
      the provisions of Article VII and shall in no event exceed the
      Participant’s Deferral Account under the
Plan.

12.10 Non-Discrimination
Limitation on Deferral Contributions:
Effective January 1, 1997:

	 	
      (a)
	
      Notwithstanding
      any other provision of the Plan to the contrary, the Plan Manager shall
      limit the amount of Deferral Contributions made on behalf of each Highly
      Compensated Employee for each Plan Year, in addition to all such salary
      reduction contributions under all other qualified cash or deferred
      arrangements (as defined in Section 401(k) of the Code) maintained by the
      Company or an Affiliate in which the Participant participates, to the
      extent necessary to ensure that either of the following tests is
      satisfied:

	
      
	
      
	
      

47

	 	 	
      (1)
	
      the
      Actual Deferral Percentage (as hereinafter defined) for the group of
      Highly Compensated Employees who are eligible to participate in the Plan
      is not more than the Actual Deferral Percentage for the preceding Plan
      Year of all other Employees who were eligible to participate in the Plan
      during such preceding Plan Year multiplied by 1.25; or

       

	 	 	
      (2)
	
      the
      excess of the Actual Deferral Percentage for the group of Highly
      Compensated Employees who are eligible to participate in the Plan over the
      Actual Deferral Percentage for the preceding Plan Year of all other
      Employees who are eligible to participate in the Plan is not more than two
      percentage points, and the Actual Deferral Percentage for the group of
      Highly Compensated Employees who are eligible to participate in the Plan
      is not more than the Actual Deferral Percentage for the preceding Plan
      Year of all other Employees who are eligible to participate in the Plan
      multiplied by 2.0.

       

	 	 	
      (3)
	
      Notwithstanding
      the foregoing, the Plan Manager may elect to determine the permissible
      Actual Deferral Percentage for Highly Compensated Employees who are
      eligible to participate in the Plan for any Plan Year beginning on or
      after January 1, 1997 on the basis of the Actual Deferral Percentage for
      the current Plan Year rather than the preceding Plan Year, of all other
      Employees who are eligible to participate in the Plan, in accordance with
      such regulations, notices or other guidance issued under Section 401(k) of
      the Code.

       

	 	
      (b)
	
      If
      it is determined prior to any payroll period that the amount of Deferral
      Contributions elected to be made thereafter under Section 4.1 or Section
      4.3 would cause the limitation prescribed in this Section 12.10 to be
      exceeded, the amount of Deferral Contributions allowed to be made on
      behalf of Highly Compensated Employees shall be reduced, notwithstanding
      the limitations on contribution rate changes in Section 4.5. Except as is
      hereinafter provided, the Participants to whom such reduction is
      applicable and the amount of such reduction shall be determined pursuant
      to such nondiscriminatory rules as the Plan Manager shall
      prescribe.

	
      
	
      
	
      

	 	
      (c)
	
      In
      addition to the reductions set forth in Subsection 12.10(b), if the
      limitations under Subsection 12.10(a) are exceeded in any Plan Year, the
      Plan Manager may, in accordance with regulations issued under Section
      401(k)(3) of the Code, authorize or require the recharacterization of
      Excess Deferral Contribu-tions as Regular Contributions, provided that the
      recharacterization actually occurs within two and a half (21⁄2) months after
      the close of the Plan Year and pursuant to Section 4.2 for the Plan Year
      so that the limitations in that Plan Year are not exceeded.
    

48

	 	 	
      Any
      Regular Contributions under the Plan that result from the
      recharacterization of Excess Deferral Contributions in accordance with
      this Subsection, shall be nonforfeitable when made and are distributable
      only in accordance with the distribution and withdrawal provisions that
      are applicable to Salary Deferral Contributions under the
      Plan.

 

	 	
      (d)
	
      To
      the extent such Deferral Contributions exceeding the limitations under
      Subsection 12.10(a) are not recharacterized, the Company may, in its
      discretion, authorize the Employer to make Qualified Nonelective
      Contributions to the Accounts of certain Participants who are not Highly
      Compensated Employees.

	 	
      (e)
	
      To
      the extent the limitations under Subsection 12.10(a) continue to be
      exceeded following such recharacterization or making of Qualified
      Nonelective Contributions, if any, the Excess Deferral Contributions made
      on behalf of Highly Compensated Employees with respect to a Plan Year and
      income allocable thereto for the Plan Year shall then be distributed to
      such Highly Compensated Employees as soon as practicable after the end of
      such Plan Year, but no later than twelve months after the close of such
      Plan Year. The amount of income allocable to Excess Deferral Contributions
      for the Plan Year shall be determined in accordance with the regulations
      issued under Section 401(k) of the Code and the provisions of Article VII.
      The amount of Excess Deferral Contributions distributed to any Participant
      under this subparagraph for any Plan Year shall be reduced by any Excess
      Deferrals previously distributed to such Participant pursuant to Section
      12.9, if any, for such Plan Year. Any amount returned to a Participant
      pursuant to this Section 12.10(e) shall be withdrawn first from any
      amounts invested in Investment Funds other than the Common Stock Fund, and
      then, if necessary, from the Common Stock
Fund.

	 	
      (f)
	
      The
      Plan Manager is authorized to implement rules under which any combination
      of the methods described in the foregoing Subsections 12.10(b), 12.10(c),
      12.10(d) and 12.10(e) may be utilized to assure that the limitations of
      Subsection 12.10(a) are satisfied.

12.11 Nondiscrimination
Limitations on Regular Contributions and Employer
Contributions:
Effective January 1, 1997:

	 	
      (a)
	
      Notwithstanding
      any other provision of the Plan to the contrary, for each Plan Year, the
      Plan Manager shall limit the amount of Regular Contributions under
      Sections 4.2 and 4.3 (including any recharacterized Deferrals pursuant to
      Section 12.10) and Employer Contributions under Section 5.1 made by or on
      behalf of each Highly Compensated Employee to the extent necessary to
      ensure that either of the following tests is
satisfied:

	
      
	
      
	
      

49

	 	 	
      (1)
	
      the
      Actual Contribution Percentage for the group of Highly Compensated
      Employees who are eligible to participate in the Plan is not more than the
      Actual Contribution Percentage for the preceding Plan Year of all other
      Employees who are eligible to participate in the Plan multiplied by 1.25;
      or

       

	 	 	
      (2)
	
      the
      excess of the Actual Contribution Percentage for the group of Highly
      Compensated Employees who are eligible to participate in the Plan over the
      Actual Contribution Percentage for the preceding Plan Year of all other
      Employees who are eligible to participate in the Plan is not more than two
      percentage points, and the Actual Contribution Percentage for the group of
      Highly Compensated Employees who are eligible to participate in the Plan
      is not more than the Actual Contribution Percentage for the preceding Plan
      Year of all other Employees who are eligible to participate in the Plan
      multiplied by 2.0.

       

	 	 	
      (3)
	
      Notwithstanding
      the foregoing, the Plan Manager may elect to determine the permissible
      Actual Contribution Percentage for Highly Compensated Employees who are
      eligible to participate in the Plan for any Plan Year beginning on or
      after January 1, 1997 on the basis of the Actual Contribution Percentage
      for the current Plan Year rather than the preceding Plan Year, of all
      other Employees who are eligible to participate in the Plan, in accordance
      with such regulations, notices or other guidance issued under Section
      401(k) of the Code.

	 	
      (b)
	
      If
      it is determined prior to any payroll period that the Regular
      Contributions under Section 4.2 or Section 4.3 to be contributed
      thereafter would cause the limitation prescribed in this Section 12.11 to
      be exceeded, the amount of such contributions allowed to be made by or on
      behalf of Highly Compensated Employees shall be reduced, notwithstanding
      the limitations on contribution rate changes in Section 4.5. Except as is
      hereinafter provided, the Participants to whom such reduction is
      applicable and the amount of such reduction shall be determined pursuant
      to such nondiscriminatory rules as the Plan Manager shall
      prescribe.

	
      
	
      
	
      

	 	
      (c)
	
      Notwithstanding
      the foregoing paragraph, if with respect to any Plan Year amounts
      contributed by or on behalf of Highly Compensated Employees exceed the
      applicable limit set forth in Subsection 12.11(a), the Company may, in its
      discretion, authorize the making of additional contributions to the
      Accounts of Participants who are not Highly Compensated Employees, which
      additional contributions shall either be Qualified Nonelec-tive
      Contributions or additional Employer Contributions under Section 5.1. In
      addition, in accordance with regulations issued under Section 401(m) of
      the Code, the Plan Manager may elect to treat amounts attributable to
      Deferrals as such additional Employer Contributions solely for the
      purposes of satisfying the limitations of Subsection
    12.11(a).

50

	 	
      (d)
	
      If
      the limitations under Subsection 12.11(a) continue to be exceeded
      following such Qualified Nonelective Contributions or additional Employer
      Contribution amounts, if any, the Excess Aggregate Contributions made with
      respect to Highly Compensated Employees with respect to such Plan Year,
      and any income attributable thereto, shall be distributed to Highly
      Compensated Employees in an amount equal to each such Participant’s
      Regular Contributions under Section 4.3 (including recharacterized
      Deferral Contributions). 

	
      
	
      
	
       

	 	
      (e)
	
      If
      the limitations under Subsection 12.11(a) continue to be exceeded
      following the distributions described in Subsect-ion (d), the Regular
      Contributions under Section 4.2 and associated Employer Contributions
      along with earnings attributable to such amounts for the Plan Year shall
      be distributed (to the extent already vested and, if not vested,
      forfeited) to the extent of the remaining Excess Aggregate Contributions,
      as determined pursuant to such rules and regulations as shall be
      prescribed by the Internal Revenue Service under Section 401(m) of the
      Code and the provisions of Article VII, to the affected Highly Compensated
      Employees. Any such forfeitures shall be utilized no later than as of the
      last day of the Plan Year in which such forfeiture occurs to reduce future
      Employer Contributions and to defray administrative expenses of the
      Plan.

	
      
	
      
	
       

	 	
      (f)
	
      All
      Excess Aggregate Contributions and any income allocable thereto shall be
      forfeited or distributed, as described above, as soon as practicable after
      the close of the Plan Year, but no later than twelve months after the
      close of the Plan Year in which they occur. The amount of income allocable
      to Excess Aggregate Contributions shall be determined in accordance with
      the regulations issued under Section 401(m) of the Code and the provisions
      of Article VII. The Plan Manager is authorized to implement rules under
      which any combination of the methods described in the foregoing
      Subsections 12.11(b), 12.11(c), 12.11(d), and 12.11(e) may be utilized to
      assure that the limitations of Subsection 12.11(a) are satisfied. Any
      amount returned to a Participant pursuant to Section 12.11(d) or Section
      12.11(e) shall be withdrawn first from any amounts invested in Investment
      Funds other than the Common Stock Fund, and then, if necessary, from the
      Common Stock Fund.

	
      
	
      
	
      

	 	
      (g)
	
      Notwithstanding
      anything to the contrary in Sections 12.10 or 12.11, effective January 1,
      1989, Deferrals, Regular Contributions, and Employer Contributions may not
      be made to this Plan in violation of the rules prohibiting multiple use of
      the alternative limitation described in Sections 401(k)(3)(A)(ii)(II) and
      401(m)(2)(A)(ii) of the Code and the provisions of Treasury Regulation
      section 1.401(m)-2(b) and any further guidance issued thereunder. If such
      multiple use occurs,
      the Actual Contribution Percentages for all Highly Compensated Employees
      (determined after applying the foregoing provisions of Sections 12.10 and
      12.11) shall be reduced in accordance with Treasury Regulation section
      1.401(m)-2(c) and any further guidance issued thereunder in order to
      prevent such multiple use of the alternative limitation.

      

	 	 	
      Anything
      herein to the contrary notwithstanding, the aggregate limit on
      contributions (the “multiple use test”) described in Treasury Regulation
      section 1.401(m)-2 and this Section 12.11(g) shall not apply for Plan
      Years beginning after December 31, 2001.

	
      
	
      
	
      

	 	
      (h)
	
      Notwithstanding
      anything in the Plan to the contrary, if the rate of Employer
      Contributions, deter-mined after application of the corrective mechanisms
      described in Section 12.10 and the foregoing provisions of Section 12.11,
      discriminates in favor of Highly Compensated Employees, any such amounts
      attributable to any Excess Deferral Contributions, Excess Aggregate
      Contributions, or Excess Deferrals (as described in Subsection 12.9(d)) of
      each affected Highly Compensated Employee shall be forfeited so that the
      rate of contribution is nondiscriminatory. Any such forfeitures shall be
      made no later than the end of the Plan Year following the Plan Year for
      which the contribution was made. Forfeitures, if any, shall be used no
      later than as of the end of the Plan Year in which they occur to reduce
      future Employer Contributions or to defray administrative expenses of the
      Plan. Any amount forfeited pursuant to this Section 12.11(h) shall be
      forfeited first from any amounts invested in Investment Funds other than
      the Common Stock Fund, and then, if necessary, from the Common Stock
      Fund.

51

12.12 Definitions: For
purposes of Sections 12.9, 12.10, and 12.11 (as well as such other provisions of
the Plan specifically referring to a definition in this Section 12.12), the
following terms have the following meanings:

	 	
      (a)
	
      The
      term “Actual Deferral Percentage” means, for a specified group of
      Employees who are eligible to participate in the Plan for a Plan Year, the
      average of the ratios (calculated separately for each person in such
      group) of:

	 	 	
      (1)
	
      the
      aggregate of the Deferral contributions (including any Additional
      Contributions treated as Deferrals, but excluding any catch-up
      contributions made under Section 4.3(b)) and any Qualified Non-elective
      Contributions (as hereinafter defined) which, in accordance with the rules
      set forth in Treasury Regulation Section 1.401(k)-1(b)(4) and (5) are, at
      the election of the Plan Manager, in fact taken into account with respect
      to such Plan Year, to

 

	 	 	
      (2)
	
      such
      Employee’s Compensation taken into account for the Plan Year. In
      determining the Actual Deferral Percentages for a Plan Year, any
      Participant who is suspended from participation pursuant to Section 8.1
      and, to the extent required by Section 401(k) of the Code and the
      regulations and other guidance issued thereunder, any Employee who waives
      participation under Section 2.14 shall be treated as an eligible
      Participant. In all events, Actual Deferral Percentages shall be
      determined in accordance with all of the applicable requirements
      (including, to the extent applicable, the plan aggregation requirements)
      of Section 401(k) of the Code, and the regulations and other guidance
      issued thereunder.

       

	 	
      (b)
	
      The
      term “Actual Contribution Percentage” means, for a specified group of
      Employees who are eligible to participate in the Plan, the average of the
      ratios (calculated separately for each person in such group)
      of:

	 	 	
      (1)
	
      the
      aggregate of the Regular Contributions and Employer Contributions
      (including Additional Contributions treated as Regular Contributions, in
      addition to such other contributions, including Qualified Nonelective
      Contributions or Deferrals and including all such Contributions made under
      all other plans subject to Section 401(m) of the Code maintained by the
      Company or an Affiliate in which the Participant participates, which, in
      accordance with applicable rules and regulations promulgated by the
      Internal Revenue Service, the Plan Manager elects to aggregate with such
      Regular Contributions for purposes of demonstrating compliance with the
      requirements of Section 401(m)(2) of the Code) which are paid to the Trust
      Fund by or on behalf of each such Employee for a Plan Year,
to

       

	 	 	
      (2)
	
      such
      Employee’s Compensation taken into account for such Plan
Year.

       

	 	 	 	
      In
      determining the Actual Contribution Percentage for a Plan Year, any
      Participant who is suspended from participation pursuant to Section 8.1
      and, to the extent required by Section 401(m) of the Code and the
      regulations and other guidance issued thereunder, any Employee who waives
      participation under Section 2.15 shall be treated as an eligible
      Participant. In all events, Actual Contribution Percentages shall be
      determined in accordance with all of the applicable requirements
      (including, to the extent applicable, the plan aggregation requirements)
      of Section 401(m) of the Code, and the regulations and other guidance
      issued thereunder.

 

	
      
	
      
	
      

52

	 	
      (c)
	
      The
      term “Compensation” means, for Plan Years beginning before January 1,
      2001, wages within the meaning of Section 3401(a) of the Code (without
      regard to any rules under Section 3401(a) that limit the remuneration
      included in wages based on the nature or location of the employment or the
      services performed (such as the exception for agricultural labor in
      Section 3401(a)(2)) and all other payments of compensation to an Employee
      by the Company (in the course of the Company’s trade or business) for
      which the Company is required to furnish the Employee a written statement
      under Sections 6401(d), 6051(a)(3) and 6052 of the Code (a Form W-2),
      modified to include all amounts currently not included in the Employee’s
      gross income by reason of Sections 125, 132(f)(4) and 402(e)(3) of the
      Code (for Plan Years beginning on and after January 1, 1998). For
      purposes of this Section for Plan Years beginning on or after January 1,
      2001, the term “Compensation” shall include all forms of remuneration
      described in Treas. Reg. Section 1.415-2(d)(2) plus any elective deferrals
      (as defined in Code Section 402(g)(3)), any amounts that are not
      includible in the gross income of the Participant by reason of Code
      Section 125, and amounts received as a qualified transportation fringe
      under Code Section 132(f), and shall exclude all forms of remuneration
      described in Treas. Reg. Section
1.415-2(d)(3).

	 	 	
      Notwithstanding
      the foregoing, the total amount of Compensation taken into account for any
      Plan Year shall not exceed the applicable annual compensation limitation
      in effect under Section 401(a)(17) of the Code, as adjusted by the
      Internal Revenue Service for increases in the cost of living in accordance
      with Section 401(a)(17) of the Code and the regulations and other guidance
      issued thereunder. If the Plan Year consists of fewer than twelve months,
      the foregoing annual Compensation limit will be multiplied by a fraction,
      the numerator of which is the number of months in the Plan Year, and the
      denominator of which is twelve. In the case of an Employee who begins,
      resumes, or ceases to be eligible to make contributions during a Plan
      Year, the amount of Compensation included in the Actual Deferral
      Percentage and Actual Contribution Percentage test is the amount of
      Compensation received by the Employee during the entire Plan
      Year.

 

	 	
      (d)
	
      The
      term “Excess Aggregate Contributions” means, with respect to each Highly
      Compensated Employee, the amount equal to the total amount of Regular
      Contributions under Section 4.2 (including Additional Contributions
      treated as Regular Contributions) and Employer Contributions under Section
      5.1 (determined prior to the application of the leveling procedure
      described below) (“Aggregate Contributions”) minus the product of the
      Employee’s Actual Contribution Percentage (determined after the leveling
      procedure described below) multiplied by the Employee’s Compensation. In
      accordance with the regulations issued under Section 401(m) of the Code,
      Excess Aggregate Contributions shall be determined by a leveling procedure
      under which the Actual Contribution Percentage of
the

 

53

 

	 	 	
      Highly
      Compensated Employee with the highest such percentage shall be reduced to
      the extent required to enable the limitation of Section 12.11(a) to be
      satisfied, or, if it results in a lower reduction, to the extent required
      to cause such Highly Compensated Employee’s Actual Contribution Percentage
      to equal that of the Highly Compensated Employee with the next highest
      percentage. This leveling procedure shall be repeated until the
      limitations of Subsection 12.11(a) are satisfied. Once the leveling
      procedure has been completed, the total dollar amounts of Excess Aggregate
      Contributions shall be determined. This amount shall be distributed in
      accordance with a distribution procedure under which the dollar amount of
      Aggregate Contributions of the Highly Compensated Employee with the
      highest dollar amount of Aggregate Contributions shall be reduced to the
      extent required to distribute the total amount of Excess Aggregate
      Contributions or, if it results in a lower reduction, to the extent
      required to cause such Highly Compensated Employee’s dollar amount of
      Aggregate Contributions to equal the dollar amount of Aggregate
      Contributions of the Highly Compensated Employee with the next highest
      dollar amount of Aggregate Contributions. This distribution procedure
      shall be repeated until all Excess Aggregate Contributions have been
      distributed.

	 	
      (e)
	
      “Excess
      Deferral Contributions” means, with respect to each Highly Compensated
      Employee, the amount equal to total Employee Deferrals on behalf of the
      Employee (determined prior to the application of the leveling procedure
      described below) minus the product of the Employee’s Actual Deferral
      Percentage (determined after application of Section 12.10 and after the
      leveling procedure described below) multiplied by the Employee’s
      Compensation. In accordance with the regulations issued under Section
      401(k) of the Code, Excess Deferral Contributions shall be determined by a
      leveling procedure under which the Actual Deferral Percentage of the
      Highly Compensated Employee with the highest such percentage shall be
      reduced to the extent required to enable the limitation of Section
      12.10(a) to be satisfied, or, if it results in a lower reduction, to the
      extent required to cause such Highly Compensated Employee’s Actual
      Deferral Percentage to equal the Actual Deferral Percentage of the Highly
      Compensated Employee with the next highest Actual Deferral Percentage.
      This leveling procedure shall be repeated until the limitations of Section
      12.10(a) are satisfied. Once the leveling procedure has been completed,
      the total dollar amounts of Excess Deferral Contributions shall be
      determined. This amount shall be distributed in accordance with a
      distribution procedure under which the dollar amount of Employee Deferrals
      of the Highly Compensated Employee with the highest dollar amount of
      Employee Deferrals shall be reduced to the extent required to distribute
      the total amount of Excess Deferral Contributions or, if it results in a
      lower reduction, to the extent required to cause such Highly Compensated
      Employee’s dollar amount of Employee Deferrals to equal the dollar amount
      of Employee Deferrals of the Highly Compensated Employee with the
      next
      highest dollar amount of Employee Deferrals. This distribution procedure
      shall be repeated until all Excess Deferral Contributions have been
      distributed.

      

	 	
      (f)
	
      “Qualified
      Nonelective Contributions” means contributions that are made pursuant to
      Sections 12.10(c) or 12.11(c), meet the requirements of Section
      401(m)(4)(C) of the Code and the regulations issued thereunder, and which
      are designated as a Qualified Nonelective Contribution for purposes of
      satisfying the limitations of Sections 12.10(a) or 12.11(a). Qualified
      Nonelective Contributions shall be nonforfeitable when made and are
      distributable only in accordance with the distribution and withdrawal
      provisions that are applicable to Tax Deferred Contributions under the
      Plan; provided, however, that Qualified Nonelective Contributions may not
      be withdrawn on account of financial hardship. If any Qualified
      Nonelective Contributions are made, the Company shall keep such records as
      necessary to reflect the amount of such contributions made for purposes of
      satisfying the limitations of Section 12.10(a) or Section 12.11(a).
      Qualified Nonelective Contributions may be taken into account for purposes
      of the limitations in Sections 12.10(a) or 12.11(a) only if the
      nondiscrimination and plan aggregation conditions described in Treasury
      Regulation sections 1.401(m)-1(b)(5) and 1.401(k)-1(b)(5) and any other
      guidance issued thereunder are satisfied. 

 

54

ARTICLE
XIII. TOP HEAVY PROVISIONS

 

13.1 General
Rule: For any
Plan Year for which the Plan is a “Top-Heavy Plan” as defined in Section 13.7
below, any other provisions of the Plan to the contrary notwithstanding, this
Plan shall be subject to the following provisions: 

	 	
      (a)
	
      The
      vesting provisions of Section 13.2.

	
      
	
      
	
      

	 	
      (b)
	
      The
      minimum benefit provisions of Section 13.3.

	
      
	
      
	
      

	 	
      (c)
	
      The
      limitation on benefits set by Section 13.4.

13.2 Vesting
Provisions: Each
Participant shall have a nonforfeitable right to the Employer’s Contributions
and earnings thereon as provided in Article X. 

13.3 Minimum
Benefit Provisions: Each
Participant who is a Non-Key Employee (as defined in Section 13.9 below) shall
be entitled to an Employer Contribution of the lesser of (i) three percent of
such Participant’s annual Compensation as defined in Section 12.4(b) or (ii) the
highest actual percentage Employer Contributions made or required to be made on
behalf of any Key Employee. Notwithstanding the preceding sentence, a
Participant shall not be entitled to any minimum Employer Contribution under
this Section 13.3 if the Employer maintains a defined benefit plan providing
benefits on behalf of Participants in this Plan and the defined benefit plan
provides a minimum top heavy benefit.

13.4 Limitation
on Benefits: In the
event that the Employer also maintains a defined benefit plan providing benefits
on behalf of Participants in this Plan, one of the two following provisions
shall apply: 

	 	
      (a)
	
      If
      for the Plan Year this Plan would not be a “Top-Heavy Plan” as defined in
      Section 13.7 below if “90 percent” were substituted for “60 percent,” then
      Section 13.3 shall apply for such Plan Year as if amended so that the
      minimum Employer Contribution is four percent of the Participant’s annual
      compensation.

	
      
	
      
	
      

	 	
      (b)
	
      Effective
      for Limitation Years beginning prior to January 1, 2000, if for the Plan
      Year this Plan would continue to be a “Top-Heavy Plan” as defined in
      Section 13.7 below if “90 percent” were substituted for “60 percent,” then
      the denominator of both the Defined Contribution Plan Fraction and the
      Defined Benefit Plan Fraction shall be calculated as set forth in Section
      12.6 for the Limitation Year by substituting “1.0” for “1.25” in each
      place such figure appears, except with respect to any individual for whom
      there are no Employer Contributions, forfeitures or voluntary
      nondeductible contributions allocated or accruals for such individual
      under the defined benefit plan.

55

13.5 Coordination
with Other Plans: In the
event that another defined contribution or defined benefit plan maintained by
the Employer provides contributions or benefits on behalf of Participants in
this Plan, such other plan shall be treated as a part of this Plan pursuant to
applicable principles (such as Rev. Rul. 81-202 or any successor ruling) in
determining whether this Plan satisfies the Top-Heavy requirements.

13.6 Top-Heavy
Plan Definition: This
Plan shall be a “Top-Heavy Plan” for any Plan Year if, as of the Determination
Date (as defined in (a) below), the aggregate of the Account balances for
Participants (including former Participants) who are Key Employees (as defined
in Section 13.8 below) exceeds 60 percent of the aggregate of the Account
balances for all Participants or if this Plan is required to be in an
Aggregation Group (as defined in (b) below) which for such Plan Year is a
Top-Heavy Group (as defined in (c) below). 

	 	
      (a)
	
      “Determination
      Date” means for any Plan Year the last day of the immediately preceding
      Plan Year.

	
      
	
      
	
      

	 	
      (b)
	
      “Aggregation
      Group” means the group of plans, if any, that includes both the group of
      plans that are required to be aggregated and the group of plans that are
      permitted to be aggregated.

	 	 	
      (1)
	
      The
      group of plans that are required to be aggregated (the “Required
      Aggregation Group”) includes:

       

	 	 	 	
      (i)
	
      Each
      plan of the Employer in which a Key Employee is a participant,
      and

	
      
	
      
	
      
	
      
	
      

	 	 	 	
      (ii)
	
      Each
      other plan of the Employer which enables a Plan in which a Key Employee is
      a participant to meet the requirements of either Code Sections 401(a)(4)
      or 410.

	
      
	
      
	
      
	
      
	
      

	 	 	
      (2)
	
      The
      group of plans that are permitted to be aggregated (the “Permissive
      Aggregation Group”) includes any plan that is not part of the Required
      Aggregation Group that the Plan Manager certifies as constituting a plan
      within the Permissive Aggregation Group. Such plans may be added to the
      Permissive Aggregation Group only if, after the addition, the Aggregation
      Group as a whole continues to meet the requirements of both Code Sections
      401(a)(4) and 410.

       

	 	
      (c)
	
      “Top-Heavy
      Group” means the Aggregation Group, if as of the applicable Determination
      Date, the sum of the actuarial present value of the cumulative accrued
      benefits for Key Employees under all defined benefit plans included in the
      Aggregation Group plus the aggregate of the Accounts of Key Employees
      under all 

      defined
      contribution plans included in the Aggregation Group exceeds 60 percent of
      the sum of the actuarial present value of the cumulative accrued benefits
      for Key Employees under all such defined benefit plans plus the aggregate
      Accounts for all employees under such defined contribution
      plans.

	 	
      (d)
	
      Effective
      for Plan Years beginning after December 31, 1986, solely for the purpose
      of determining if the Plan, or any other plan included in a required
      aggregation group of which this Plan is a part, is top-heavy (within the
      meaning of Section 416(g) of the Code) the accrued benefit of an Employee
      other than a key employee (within the meaning of Section 416(i)(l) of the
      Code) shall be determined under (a) the method, if any, that uniformly
      applies for accrual purposes under all plans maintained by the Affiliated
      Employer, or (b) if there is no such method, as if such benefit accrued
      not more rapidly than the slowest accrual rate permitted under the
      fractional accrual rate of Section 411(b)(1)(C) of the
    Code.

	
      
	
      
	
      

	 	
      (e)
	
      In
      determining whether this plan constitutes a “Top-Heavy Plan,” the Plan
      Manager shall make the following adjustments in connection
      therewith:

	
      
	
      
	
      

	 	 	
      (1)
	
      In
      determining the actuarial present value of the cumulative accrued benefit
      or the amount of the Account of any Employee, such actuarial present value
      or Account shall include the amount in dollar value of the aggregate
      distributions made to such Employee under the applicable plan during the
      five-year period ending on the Determination Date. Such amounts shall also
      include distributions to Employees which represented the entire amount
      credited to their Accounts under the applicable plan.

       

	 	 	
      (2)
	
      Further,
      in making such determination such actuarial present value or such Account
      shall not include any rollover contribution (or similar transfer)
      initiated by the Employee and made after December 31, 1983, to an
      applicable plan with respect to whether such plan is Top-Heavy or the
      Aggregation Group of which it is a part is a Top-Heavy Group.

       

 

56

	 	 	
      (3)
	
      Further,
      in making such determination, in any case where an individual is a
      “Non-Key Employee,” as defined below, with respect to an applicable plan
      but was a Key Employee with respect to such plan for any prior Plan Year,
      any accrued benefit and any Account of such Employee shall be altogether
      disregarded. For this purpose, to the extent that a Key Employee is deemed
      to be a Key Employee if he or she met the definition of Key Employee
      within any of the four preceding Plan Years, this provision shall apply
      following the end of such period of
time.

 

13.7 Key
Employee: The term
“Key Employee” means any Participant (and any beneficiary of a Participant)
under this Plan who, at any time during the Plan Year of the Determination Date
or during any of the four preceding Plan Years, is or was one of the following:

	 	
      (a)
	
      An
      officer of the Employer having an annual compensation greater than 150% of
      the dollar limit on contributions under Internal Revenue Code Section
      415(c)(1)(A) in effect for any such Plan Year. For any such Plan Year,
      there shall be treated as officers no more than the lesser
    of:

	
      
	
      
	
      

	 	 	
      (1)
	
      50
      Employees, or

 

	 	 	
      (2)
	
      10
      percent of the Employees, or if greater than 10 percent, three
      Employees.

            For this purpose, the
highest paid officers shall be selected.

	 	
      (b)
	
      One
      of the 10 Employees owning (or considered as owning, in accordance with
      applicable principles, such as Internal Revenue Code Section 318 or a
      successor provision) the largest interests in the
  Employer.

	
      
	
      
	
      

	 	
      (c)
	
      Any
      person who owns (or is considered as owning, in accordance with applicable
      principles, such as Internal Revenue Code Section 318 or a successor
      provision) more than five percent of the outstanding stock of the Employer
      or stock possessing more than five percent of the combined total voting
      power of all stock of the Employer.

	
      
	
      
	
      

	 	
      (d)
	
      Any
      person who owns (or is considered as owning, in accordance with applicable
      principles, such as Internal Revenue Code Section 318 or a successor
      provision) more than one percent of the outstanding stock of the Employer
      or stock possessing more than five percent of the combined total voting
      power of all stock of the Employer and receives annual compensation from
      the Employer of more than $150,000.

13.8 Non-Key
Employee: The term
“Non-Key Employee” means any Employee (and any beneficiary of an Employee) who
is not a Key Employee. 

13.9 Collective
Bargaining Rules: The
provisions of Sections 13.2, 13.3 and 13.4 above do not apply with respect to
any Employee included in a unit of employees covered by a collective bargaining
agreement and who is covered by such agreement unless the application of such
Sections has been agreed upon with the collective bargaining agent.

57

13.10 Distribution
to Key Employees:
Notwithstanding any other provision of this Plan, the entire interest in this
Plan of each Participant who is or at any time has been a Key Employee shall be
distributed (or distribution of such interest shall have begun) to such
Participant not later than April 1 of the taxable year of the Participant in
which the Participant attains age 701⁄2.

13.11 EGTRRA
Modifications to Article 13:
Notwithstanding any other provision of this Article 13, this Section 13.11 shall
apply for purposes of determining whether the Plan is a top-heavy plan under
Code Section 416(g) of for Plan Years beginning after December 31, 2001, and
whether the Plan satisfies the minimum benefits requirements of Code Section
416(c) for such years. This Section modifies the rules in this Article 13 for
Plan Years beginning after December 31, 2001.

	 	
      (a)
	
      Determination
      of top-heavy status.

	 	 	
      (1)
	
      Key
      Employee. Key Employee means any Employee or former Employee (including
      any deceased Employee) who at any time during the Plan Year that includes
      the Determination Date was an officer of the Employer having annual
      compensation greater than $130,000 (as adjusted under Code Section
      416(i)(1) for Plan Years beginning after December 31, 2002), a 5-percent
      owner of the Employer, or a 1-percent owner of the Employer having annual
      compensation of more than $150,000. For this purpose, annual compensation
      means compensation within the meaning of Code Section 415(c)(3). The
      determination of who is a Key Employee will be made in accordance with
      Code Section 416(i)(1) and the applicable regulations and other guidance
      of general applicability issued thereunder.

	 	 	
      (2)
	
      Determination
      of present values and amounts. This paragraph (2) shall apply for purposes
      of determining the present values of accrued benefits and the amounts of
      account balances of Employees as of the Determination
  Date.

	
      
	
      
	
      

	 	 	 	
      (A)
	
      Distributions
      during year ending on the Determination Date. The present values of
      accrued benefits and the amounts of account balances of an Employee as of
      the Determination Date shall be increased by the distributions made with
      respect to the Employee under the Plan and any plan aggregated with the
      Plan under Code Section 416(g)(2) during the 1-year period ending on the
      Determination Date. The preceding sentence shall also apply to
      distributions under a terminated plan which, had it not been terminated,
      would have been aggregated with the Plan under Code Section
      416(g)(2)(A)(i). In the case of a distribution made for a reason other
      than separation from service, death, or disability, this provision shall
      be applied by substituting 5-year period for 1-year
  period.

	
      
	
      
	
      

	 	 	 	
      (B)
	
      Employees
      not performing services during year ending on the Determination Date. The
      accrued benefits and accounts of any individual who has not performed
      services for the Employer during the 1-year period ending on the
      Determination Date shall not be taken into
account.

58

	 	
      (b)
	
      Minimum
      benefits/Matching contributions. Employer matching contributions shall be
      taken into account for purposes of satisfying the minimum contribution
      requirements of Code Section 416(c)(2) and the Plan. The preceding
      sentence shall apply with respect to matching contributions under the Plan
      or, if the Plan provides that the minimum contribution requirement shall
      be met in another plan, such other plan. Employer matching contributions
      that are used to satisfy the minimum contribution requirements shall be
      treated as matching contributions for purposes of the actual contribution
      percentage test and other requirements of Code Section
401(m).

       

	 	
      (c)
	
      The
      top-heavy requirements of Code Section 416 and this Article 10 shall not
      apply in any year beginning after December 31, 2001, in which the Plan
      consists solely of a cash or deferred arrangement which meets the
      requirements of Code Section 401(k)(12) and matching contributions with
      respect to which the requirements of Code Section 401(m)(11) are
      met.

59

ARTICLE
XIV. VOTING OF STOCK

 

14.1 Voting
of Stock: Each
Participant (or Beneficiary of a deceased Participant) is, for purposes of this
Section 14.1, hereby designated as a “named fiduciary” (within the meaning of
ERISA) with respect to the shares of SCANA Corporation Common Stock credited to
his Account and shall have the right to direct the Trustee with respect to the
vote of the shares of SCANA Corporation Common Stock credited to his Account, on
each matter brought before any meeting of the stockholders of the Company.
Before each such meeting of stockholders, the Company shall cause to be
furnished to each Participant (or Beneficiary) a copy of the proxy solicitation
material, together with a form requesting confidential directions to the Trustee
on how such shares of SCANA Corporation Common Stock credited to such
Participant’s (or Beneficiary’s) Account shall be voted in each such matter.
Upon timely receipt of such directions, the Trustee shall on each such matter
vote as directed the number of shares (including fractional shares) of SCANA
Corporation Common Stock credited to such Participant’s (or Beneficiary’s)
Account, and the Trustee shall have no discretion in such matter. The
instructions received by the Trustee from Participants (or Beneficiaries) shall
be held in confidence and shall not be divulged or released to any person,
including the Committee, the Plan Manager, officers or employees of the Company
or an affiliate. The Trustee shall vote shares of SCANA Corporation Common Stock
for which it has not received direction in the same proportion as directed
shares are voted, and the Trustee shall have no discretion in such
matter.

14.2 Tender
Offer Rights With Respect to Stock: The
provisions of this Section 14.2 shall apply in the event a tender or exchange
offer, including, but not limited to, a tender offer or exchange offer within
the meaning of the Securities Exchange Act of 1934, as from time to time amended
and in effect (hereinafter, a “tender offer”) for SCANA Corporation Common Stock
is commenced by a person or persons. The Trustee shall have no discretion or
authority to sell, exchange or transfer any of such shares pursuant to such
tender offer except to the extent, and only to the extent, as provided in this
Plan and the trust agreement. Each Participant (or Beneficiary) is, for purposed
of this Section 14.2, hereby designated as a “named fiduciary” (within the
meaning of ERISA) with respect to the shares of SCANA Corporation Common Stock
credited to his Account and shall have the right, to the extent of the number of
whole shares of SCANA Corporation Common Stock credited to his Account, to
direct the Trustee in writing as to the manner in which to respond to a tender
offer with respect to shares of SCANA Corporation Common Stock. The Company
shall use its best efforts to timely distribute or cause to be distributed to
each Participant (or Beneficiary) such information as will be distributed to
stockholders of the Company in connection with any such tender offer. Upon
timely receipt of such instructions, the Trustee shall respond as instructed
with respect to such shares of SCANA Corporation Common Stock. The instructions
received by the Trustee from Participants (or Beneficiaries) shall be held by
the Trustee in confidence and shall not be divulged or released to any person,
including the Committee, the Plan Manager, officers or employees of the Company
or an affiliate. If the Trustee shall not receive timely instructions from a
Participant (or Beneficiary) as to the manner in which to respond to such a
tender offer, the Trustee shall not tender or exchange any shares of SCANA
Corporation Common Stock with respect to which such Participant (or Beneficiary)
has the right of direction, and the Trustee shall have no discretion in such
matter.

 

ARTICLE
XV. ADMINISTRATION

 

15.1 Plan
Administrator: The Plan
shall be administered by the Committee, as defined in Section 2.07.

15.2 Powers
and Duties of the Committee: The
Committee is the fiduciary that shall have all such powers as may be necessary
to discharge its duties hereunder, including, but not by way of limitation, the
power, in its discretion, to (a) interpret or construe the Plan, (b) determine
all questions of eligibility, (c) determine the classification, status and
rights of Employees, Participants and beneficiaries of Participants, (d)
determine the amount, manner and time and type of any distribution hereunder,
and (e) fix minimum periods of notice where notice is required, all in a manner
not inconsistent with the terms of the Plan. Benefits under the Plan shall be
paid only if the Committee (or its delegate) determines in its discretion that
the Participant (or beneficiary) is entitled to them. All rules and decisions of
the Committee shall be consistently applied to all persons in similar
circumstances and shall be conclusive and binding upon all persons affected
thereby. The Committee shall be entitled to rely upon certificates of the
Employer and the Trustee as to information pertinent to any determination made
pursuant to the Plan.

The
Committee shall cause to be maintained such books of accounts, records and other
data as may be necessary or advisable in its judgment for the purpose of the
proper administration of the Plan.

The
Committee shall direct the Trustee concerning all payments that shall be made
from the Trust pursuant to the Plan.

60

 

The
Committee, with respect to the Claims Review Procedure specified in Section 15.4
of the Plan, assigns to the Plan Manager the responsibility for making all
initial claims determinations. The Committee shall serve in an appeals review
capacity as to those claims denied by the Plan Manager which the Participant
timely submits in writing to the Committee for review.

If, in
the Committee’s judgment, any person to whom a distribution is due is lacking in
capacity because of illness, accident or otherwise, the Committee may authorize
a distribution to any person or institution that in the Committee’s judgment is
responsible for caring for the person who is entitled to the distribution.

The
Committee may act at a meeting or in writing without a meeting. It may adopt
such rules and regulations as it deems desirable for the conduct of its affairs.
Decisions by the Committee shall be made by the vote or assent of a majority of
its members. The Committee shall have the power to assign or allocate any of its
responsibilities among its members and to designate 

more
persons (including persons who are not members of the Committee) to carry out
its responsibilities. The Committee delegates and assigns to the Plan Manager
primary responsibility for management of the regular operations of the Plan. As
such, the Plan Manager shall have the discretionary authority to decide all
matters for which the Plan Manager is responsible under this Plan, including the
discretionary authority to interpret the applicable Plan terms.

Any
action by the Committee on matters within its discretion shall be final and
binding upon all interested parties.

15.3 Claims
Procedure: Claims
for benefits under the Plan shall be submitted to the Plan Manager in
writing.

15.4 Claims
Review Procedure:

	 	
      (a)
	
      The
      Plan Manager, as the assignee of the Committee per Plan Section 15.2,
      shall make all claims determinations for benefits under the Plan. Within
      90 days after any denial of benefits under the Plan (unless special
      circumstances require an extension of time not to exceed an additional 90
      days for processing the claim, in which event written notice of extension
      shall be furnished to the claimant prior to the termination of the initial
      90-day period, and shall indicate both the special circumstances requiring
      an extension and the date by which the Plan Manager expects to render the
      final decision), the Plan Manager shall give to the Participant whose
      claim has been denied, in whole or in part, a written notice stating the
      following information:

	
      
	
      
	
      

	 	 	
      (1)
	
      the
      specific reason or reasons for denial of the claim;

       

	 	 	
      (2)
	
      a
      specific reference to pertinent provisions of the Plan on which the denial
      is based;

       

	 	 	
      (3)
	
      a
      description of any additional material or information necessary for the
      Participant to perfect his claim and an explanation of why such material
      or information is necessary; and

       

	 	 	
      (4)
	
      an
      explanation of the claims review procedure set forth below.

       

	 	
      (b)
	
      (1)
	
      A
      Participant may request, in writing, a review of his claim provided such
      request is submitted to the Committee within 60 days after receipt of
      written notification of the denial of his claim. Failure of the
      participant to submit a written request for a review of his claim within
      the allowable 60-day period shall constitute an irrevocable consent by the
      Participant to the Plan Manager’s decision denying the benefit claimed,
      and the Plan Manager’s written notice shall so
state.

61

	 	 	
      (2)
	
      For
      the purpose of presenting his claim for review, the Participant may review
      any pertinent documents of the Plan and submit any issues and comments in
      writing to the Committee.

       

	 	
      (c)
	
      The
      Committee shall make a decision with regard to the claim for review within
      60 days after receipt of such request for review. The decision on the
      review shall be in writing and shall include the specific reason or
      reasons for the decision and references to the pertinent Plan provisions
      on which the decision is based and will be
final.

15.5 Plan
Expenses: Expenses
of administering the Plan shall be paid by the Plan as otherwise provided
herein, except to the extent such expenses are paid by the Employer.

15.6 Actions
Via Electronic or Telephonic Media: Any
reference in the Plan to a requirement for a written designation, application or
consent shall be met if the designation, application or consent is communicated
via telephonic, electronic, or other media in a manner prescribed by the Plan
Manager.

15.7 Authority
and Duties: The
duties of the Investment Committee are as follows:

	 	
      (a)
	
      The
      Investment Committee shall be the named fiduciary under the Plan solely
      for investment matters and is responsible for establishing guidelines of
      investment philosophy and strategy, for establishing and carrying out a
      funding policy and method in accordance with ERISA Section 403, and for
      adding or eliminating Investment Funds from the Plan, subject to the terms
      of Appendix II.

	
      
	
      
	
      

	 	
      (b)
	
      The
      Investment Committee will (1) review the Trustee’s actions and (2) direct
      the Trustee to make transfers of assets of the Trust Fund when it has been
      decided that a particular investment should be
changed.

	
      
	
      
	
      

	 	
      (c)
	
      The
      Investment Committee shall have the authority to retain and terminate the
      appointment of the Trustee and any investment managers and to monitor and
      select or change the Investment Funds (other than the Company Stock Fund)
      under the Plan.

15.8 Operation
of the Investment Committee: 

	 	
      (a)
	
      Membership:
      The Investment Committee will elect a Chairman from among its
      members.

	
      
	
      
	
       

62

	 	
      (b)
	
      Actions:
      Action by a majority of the members of the Investment Committee will be
      requisite and sufficient at all times to constitute action of the
      Investment Committee. However, in the event majority action is not
      possible, the Chairman of the Investment Committee will decide the
      action.

	
      
	
      
	
      

	 	
      (c)
	
      Term:
      Members of the Investment Committee will serve for such periods so long as
      they remain in the positions specified in Section 2.22, unless a member
      shall otherwise terminate in accordance with Section
    15.8(d).

	
      
	
      
	
      

	 	
      (d)
	
      Termination:
      Whenever any member of the Investment Committee ceases to be an employee
      of the Corporation or to hold the office by reason of which he is serving
      as such a member, his term of office as a member of the Investment
      Committee will terminate.

	
      
	
      
	
      

	 	
      (e)
	
      Delegation:
      The members of the Investment Committee may allocate among themselves any
      of their responsibilities under the Plan. The Investment Committee may
      also delegate to a person who is not a member of the Investment Committee
      the performance of any fiduciary or nonfiduciary duty, including a Chief
      Investment Director, who shall have the authority to act on behalf of the
      Investment Committee in the absence of the presence of the full committee.
      Any such delegation or allocation will be in writing and will be retained
      in the records of the Investment Committee. The Investment Committee or
      the person to whom the delegation or allocation was made will have the
      authority to terminate such delegation or allocation at any time, with or
      without cause.

	
      
	
      
	
      

	 	
      (f)
	
      Limitation
      of Liability: No
      other person will be liable for any act or omission of the Investment
      Committee or any person carrying out responsibilities as provided above,
      except to the extent that:

	
      
	
      
	
      

	 	 	
      (1)
	
      the
      other person knowingly participated in or knowingly undertook to conceal
      an act or omission of the Investment Committee, or knew that an act or
      omission was a breach of such person’s fiduciary duty;
  or

	
      
	
      
	
      
	
      

	 	 	
      (2)
	
      it
      is clearly imprudent for the other person to name the Investment Committee
      as the fiduciary to whom such responsibility is assigned or to continue
      the Investment Committee as the named
fiduciary.

15.9 Disbursements
from Trust Fund: The
Investment Committee shall determine the form in which disbursements shall be
made from the Trust. The Investment Committee shall determine the due
qualifications of persons authorized to approve and sign the same.

 

	 	
      (a)
	
      Benefits
      payable under the provisions of this Plan shall be made from the
      Trust.

       

	 	
      (b)
	
      Expenses
      incurred in administering the Plan and Trust, as provided in Section 15.5,
      including fees and charges of actuaries, attorneys, accountants,
      consultants, and the Trustee, and all expenses directly incurred in
      connection with the investment of Plan assets, shall be paid from the
      Trust, unless they are paid by the Corporation or another Participating
      Employer. 

63

ARTICLE
XVI. TRUSTEE

 

All
contributions under this Plan shall be paid to a Trustee who shall invest and
account for all such amounts and earnings thereon as directed by provisions of
Article VI of this Plan and the related Trust Agreement. The Trustee shall have
such rights, powers and duties as are set forth in the Trust agreement,
including the responsibility of voting the shares of SCANA Corporation Common
Stock held by the Plan in the manner directed under Article XIV of the Plan. All
assets of the Trust shall be held and invested in accordance with the provisions
of the Trust Agreement and the Plan for the sole benefit of Participants and
their beneficiaries. The Trustee shall be responsible solely for the investment
of the assets of the Trust and for the market sale of whole share amounts for
loans, cash-option in-service withdrawals and cash-option distributions, and for
fractional share cash outs associated with cash-option or share withdrawals and
distributions, all as directed by the Plan Manager and for the safekeeping of
the assets of the Trust. In giving such directions to the Trustee, the Plan
Manager is acting in its capacity as a named fiduciary of the Plan. The Trustee
shall be a directed Trustee with respect to the investment of Plan assets and
shall have no discretion regarding the investment of the Plan’s assets (except
as otherwise provided in the Trust Agreement with respect to the making of
short-term cash investments and except to the extent otherwise required by
ERISA). The Trustee shall have no responsibility for the operation or
administration of the Plan. The Trustee shall make only those disbursements and
any market sales of whole and fractional shares related thereto as directed by
the Committee or by the Plan Manager acting under direct authority or on behalf
of the Committee in accordance with Section 15.2 of this Plan and Section 2.3
and the related Trust Agreement.

64

ARTICLE
XVII. FIDUCIARY LIABILITIES

 

The named
Plan fiduciaries, including all fiduciary Committees and the individual members
thereof, and any person or other entity (including any individual members
thereof) who is deemed to be a fiduciary under the Plan (these persons and
entities are referred to below as “they”) shall not be liable for a breach of
fiduciary responsibility of another fiduciary under the Plan except to the
extent (a) they shall have participated knowingly in, or knowingly undertaken to
conceal, an act or omission of such fiduciary, knowing such act or omission was
a breach of such fiduciary’s responsibilities, (b) they shall have through a
breach of their fiduciary responsibilities enabled such fiduciary to commit a
breach of its fiduciary responsibilities, or (c) they shall have knowledge of a
breach of fiduciary responsibilities by such fiduciary, unless they made
reasonable efforts to remedy the breach. 

They also
shall not be liable for the acts or omissions of any person or persons to whom
any authority, power or responsibility has been allocated or who have been
designated to carry out their responsibilities, except to the extent they shall
have violated their fiduciary responsibilities with respect to such allocation
or designation or would otherwise be liable under provisions of the immediately
preceding paragraph. 

All Plan
fiduciaries (including the individual members of any fiduciary Committees) who
are employed by the Employer shall be indemnified by the Employer or from
proceeds under insurance policies purchased by the Employer against any and all
liabilities arising by reason of any act or failure to act made in good faith
pursuant to the provisions of the Plan, including expenses reasonably incurred
in the defense of any claim relating thereto.

The
Employer, the Committee, the Investment Committee, the Plan Manager, the
Trustee, and, to the extent provided in Section 7.4 and Article XIV, the
Participants are the named fiduciaries of the Plan. Each named fiduciary shall
have only those responsibilities with respect to the control and management of
the operation and administration of the Plan as are expressly provided under the
terms of the Plan and Trust, or as otherwise required by ERISA.

65

ARTICLE
XVIII. AMENDMENT OR TERMINATION

 

18.1 General
Provision: Except
to the extent provided in Section 18.2, the Plan may be amended or terminated by
action of the Board of Directors of SCANA Corporation, but no amendment or
termination shall cause any of the assets of the Trust to be used for or be
diverted to any purpose other than the exclusive benefit of Participants or
their beneficiaries and no amendment may reduce or eliminate any Participant’s
accrued benefit (including the form and timing of all optional forms of benefit)
in violation of Section 411(d)(6) of the Code and the regulations
thereunder.

18.2 Special
Provision: 

	 	
      (a)
	
      Authority
      to Amend.
      Effective December 15, 1993, the Employee Plans Committee will have the
      authority to amend the Plan from time to time subject to Section
      18.2(d).

	
      
	
      
	
      

	 	
      (b)
	
      Amendment
      Procedure.
      The Employee Plans Committee will determine that an amendment is
      appropriate, and will direct that it be drafted. A majority of the
      Employee Plans Committee members must approve the draft. The Employee
      Plans Committee will deliver a copy of each amendment to the Company and
      each adopting subsidiary within 30 days after
adoption.

	 	
      (c)
	
      Prohibited
      Amendments. No
      amendment under this Section 18.2 will be permitted which would have the
      effect of:

	 	 	
      (1)
	
      permitting
      any part of the assets of the Trust to be used for purposes other than the
      exclusive benefit of Participants;

       

	 	 	
      (2)
	
      revesting
      in any Employer any portion of the assets of the Trust;
  or

 

	 	 	
      (3)
	
      eliminating
      or reducing any Participant’s accrued benefit (including the form and
      timing of all optional forms of benefit) in violation of Section 411(d)(6)
      of the Code and the regulations thereunder.

	 	
      (d)
	
      Authority
      to Terminate.
      The Employee Plans Committee shall have the authority to terminate the
      Plan at any time but only if the substantial purpose of the Plan is
      continued by another plan maintained by the
Company.

	
      
	
      
	
      

66

ARTICLE
XIX. GENERAL PROVISIONS

 

19.1 Source
of Distributions:
Distributions under this Plan shall be made only out of the Trust. No persons
shall have any rights under the Plan with respect to the Trust, or against the
Trustee or the Employer, except as specifically provided for herein.

19.2 Non-Alienation
of Benefits: Except
as otherwise provided by law, no person shall have the right to assign,
alienate, transfer, hypothecate or otherwise subject to lien an interest in or
benefit under the Plan nor shall benefits under the Plan be subject to the
claims of any creditor.

 

Notwithstanding
the preceding paragraph, in the event that a qualified domestic relations order
(as defined in Section 414(p) of the Code) is received by the Committee,
benefits shall be payable in accordance with such order and Section 8.13 of the
Plan. The Plan Manager is authorized to issue procedures to effectuate the
requirements for administering qualified domestic relations orders.

19.3 Merger
or Consolidation: In case
of a merger or consolidation with, or transfer of assets or liabilities to, any
other plan, each Participant shall have a benefit at least as large as the
benefit he would have been entitled to had the Plan been terminated immediately
before the merger, consolidation or transfer. The Employee Plans Committee shall
have the authority to direct the merger, consolidation or transfer of assets and
liabilities of the Plan with and into another qualified plan; provided, however,
that the Employee Plans Committee may only merge, consolidate or transfer all of
the Plan’s assets and liabilities to another plan if the substantial purpose of
the Plan is continued by another Plan maintained by the Company.

  19.4 Transfer
from Affiliate: A
Participant in the Plan who was a participant in a qualified defined
contribution plan of an Affiliate that has not adopted the Plan (the “Prior
Employer”), may elect, with the consent of the Plan Administrator, to transfer
his Account from the Prior Employer’s plan to the Plan if such Participant meets
the following requirements:

	 	
      (a)
	
      the
      Participant’s most recent employment prior to his employment with an
      Employer was with the Prior Employer; and

	
      
	
      
	
      

	 	
      (b)
	
      the
      Participant was not deemed to have incurred a termination of employee and
      therefore was not entitled to a distribution under the Prior Employer’s
      plan as a result of the change in
employment.

Any such
transfer under this Section 19.4 shall comply with the requirements of Code
Section 411(d)(6).

19.5 No
Right to Employment: The Plan
confers no right upon any Employee to continue employment with the
Employer.

 

67

19.6 Controlling
Law: The Plan
shall be governed by the laws of the state of South Carolina, except to the
extent preempted by the laws of the United States.

19.7 Military
Service:
Notwithstanding any provision of this Plan to the contrary, effective as of
December 12, 1994, contributions, benefits and service credit with respect to
qualified military service will be provided in accordance with Section 414(u) of
the Code. Any Participant who is eligible to make up contributions to this Plan
on account of the qualified military service requirements of Code Section 414(u)
may (in accordance with and subject to the requirements of Code Section 414(u)
and the guidance issued thereunder) make up the amounts that otherwise could
have been contributed to the Plan by such Participant during the period of
qualified military service, including any catch-up contributions that could
otherwise have been made during such period of qualified military service under
Section 4.3(b).

This
restatement shall be effective from January 1, 1989 through November 1,
2004.

68

SIGNATURES

IN
WITNESS WHEREOF the undersigned has caused this instrument to be executed by the
duly authorized officer, this 13th day of
October,
2004.

 

	 	 	 
	 	SCANA
      CORPORATION
	 
 	 
 	 
 
	      	By:  	/s/ William
      B. Timmerman_______
	 	
      

      William B. Timmerman

	
       
	
      Title: 
      Chairman of the Board and Chief 

      Executive
      Officer

 

 

Attest:
   /s/
Lynn M. Williams   

       Lynn M.
Williams

       
Secretary

69

APPENDIX
I

 

Special
Provisions for Merged Plans of Acquired or Related
Companies

 

(A) Effective
June 10, 1986, the following special provisions shall apply under this Plan to
all Participants in the CPC Plan on June 9, 1986, having Account balances in the
CPC Plan Trust:

1. All
Account balances for Participants in the CPC Plan on June 9, 1986 (“CPC Plan
Participants”) had their Account balances transferred to this Plan as of June
10, 1986. 

2. All other
provisions of this Plan, as modified by the provisions of this Appendix I(A),
shall apply to the CPC Plan Participants. The provisions of Appendix I(A) shall
not apply to any other Participants.

3. Employment
with Carolina Pipeline Company, Inc., shall be considered as employment with the
Employer for all purposes relating to service and eligibility under this
Plan.

4. Notwithstanding
the provisions of Article X of this Plan, the CPC Plan Trust Accounts of the CPC
Plan Participants shall be fully vested and nonforfeitable at all
times.

5. The value
of the Account of each Participant described above in the CPC Plan Trust shall
be determined as of June 10, 1986. The balance in that Account shall be
transferred to the Trust of this Plan as of that date, shall constitute a
balance in the Account of that person, and shall thereafter be subject to all
provisions of this Plan relating to Accounts under this Plan.

6. Any
amount forfeited under the CPC Plan during the period after the most recent
reallocation of forfeitures and prior to June 10, 1986, shall be reallocated
under the terms of the CPC Plan as of June 9, 1986.

(B) Effective
April 30, 1993, the following special provisions shall apply under this Plan to
all Participants in the SCANA Corporation Employee Stock Ownership Plan (“ESOP”)
on April 29, 1993, having Account balances in the ESOP:

1. All
Account balances for Participants in the ESOP on April 29, 1993 (“ESOP
Participants”) had their Account balances transferred to this Plan as of April
30, 1993. 

70

2. All other
provisions of this Plan, as modified by the provisions of this Appendix I(B),
shall apply to the ESOP Participants. The provisions of Appendix I(B) shall not
apply to any other Participants.

3. Periods
of participation in the ESOP shall count as periods of participation in this
Plan for all purposes of Article VIII. Periods during which assets were invested
in shares of Common Stock under the ESOP shall be aggregated with all such
periods of investment under this Plan for purposes of Article VIII.

4. The ESOP
Accounts of the ESOP Participants shall be fully vested and nonforfeitable at
all times.

5. Notwithstanding
anything in Article VIII to the contrary, shares of Common Stock attributable to
the ESOP shall be distributable to ESOP Participants after such amounts have
been allocated to the Participant’s Account for 84 months, including periods
during which such assets were invested under the ESOP prior to its merger with
this Plan. Following such 84-month holding period, a Participant may elect to
make withdrawals from his transferred ESOP Account in the following order: (a)
Employee voluntary matching contributions; (b) Company contributions
(unmatched); and (c) Company matching contributions. Such withdrawals may not be
made from any Account until all Accounts previously listed have been exhausted.
An ESOP Participant may make a withdrawal under this Appendix I(B)(6) once in
any six-month period. Any such withdrawal shall be subject to the otherwise
applicable provisions of Article VIII.

6. In no
event shall the accrued benefit under the ESOP for any ESOP Participant
(including the form and timing of all optional forms of benefit) be modified in
violation of Section 411(d)(6) of the Code and the regulations thereunder,
except to the extent required to comply with applicable requirements of the
Code. 

(C) Effective
September 1, 2000, the following special provisions shall apply under this Plan
to all participants in the
Public Service Company of North Carolina, Inc. Special Savings and Retirement
Plan and Trust (the “PSNC Plan”) on August
31, 2000, having Account balances in the PSNC Plan:

1. All
Account balances for participants in the PSNC Plan on August 31, 2000 (“PSNC
Participants”) had their Account balances transferred to this Plan as of
September 1, 2000.

71

2. All other
provisions of this Plan, as modified by the provisions of this Appendix I(C),
shall apply to the PSNC Participants. The provisions of Appendix I(C) shall not
apply to any other Participants.

3. Periods
of participation in the PSNC Plan shall count as periods of participation in
this Plan for all purposes of Article VIII. 

4. The value
of the Account of each PSNC Participant described above in the PSNC Plan shall
be determined as of September 1, 2000. The balance in that Account shall be
transferred to the Trust of this Plan as of that date, shall constitute a
balance in the Account of that person, and shall thereafter be subject to all
provisions of this Plan relating to Accounts under this Plan. 

5. Any
amount forfeited under the PSNC Plan during the period after the most recent
reallocation of forfeitures and prior to September 1, 2000, shall be reallocated
under the terms of the PSNC Plan as of August 31, 2000.

6. In
connection with the transfer of Accounts from the PSNC Plan to this Plan, all
amounts attributable to PSNC Participants’ pre-tax elective deferrals, after-tax
employee contributions, and other employer contributions (including matching
contributions under the PSNC Plan) have been allocated to corresponding
Deferral, Regular Contributions, and Employer Contributions Accounts in this
Plan. Such amounts shall retain their character as pre-tax elective deferrals,
after-tax employee contributions, or employer contributions as determined under
the PSNC Plan and shall be invested in this Plan in accordance with PSNC
Participants’ direction. Notwithstanding the foregoing, if a PSNC Participant is
credited with less than 60 months of
participation in the Plan (including service in the PSNC Plan), an amount equal
to the amount attributable to matching contributions under the PSNC Plan
transferred on behalf of such Participant from the PSNC Plan shall not be
considered an amount available for withdrawal under Section 8.1(b)(7) of the
Plan until January 1, 2002. In no event shall the accrued benefit of any
PSNC Participant in the PSNC Plan (including the availability of all optional
forms of benefit) be modified in violation of Code Section 411(d)(6) and the
regulations thereunder, except to the extent, if any, required to comply with
the applicable requirements of the Code.

7.  Notwithstanding
the otherwise applicable provisions of Article 8 of the Plan, a PSNC Participant
who has not separated from service with the Company or an Affiliate shall have
the right to withdraw, in accordance 

72

with
otherwise applicable procedures set forth in Article 8 and as established by the
Plan Manager, any or all of the amount to the credit of such PSNC Participant in
such PSNC Participant’s Prior Employee Contributions Account or Prior Employer
Contribution Account as transferred from the PSNC Plan. All other amounts
transferred from the PSNC Plan to this Plan shall be available for withdrawal in
accordance with the otherwise applicable terms of the Plan.

8. Notwithstanding
the otherwise applicable language of Article 8 of the Plan, effective for
distributions made before January 1, 2001, the following provisions are
applicable to the amounts transferred from the PSNC Plan (In accordance with IRS
regulations issued under Code Section 411(d)(6) the following provisions shall
not apply to any distributions made on or after January 1, 2001.):

(a) Qualified
Annuity Requirement. Except
as provided in Paragraph 7(c), the Qualified Annuity requirement of this
Paragraph 7(a) shall apply with respect to a Participant if such Participant was
alive on August 2, 1984 and had at least one (1) Hour of Service under the PSNC
Plan on or after August 23, 1984. If such requirement applies to a Participant
and a Distribution to such Participant commences on or after January 1, 1985,
then (i) where there is no Qualified Waiver in effect with respect to the
Qualified Annuity form of Distribution, the method of Distribution to such
Participant shall be by purchasing a Qualified Annuity with the amount
distributable to such Participant and distributing such Qualified Annuity to
such Participant, and (ii) where there is a Qualified Waiver in effect with
respect to the Qualified Annuity form of Distribution, the method of
Distribution to such Participant shall be in the form of a single cash
payment.

 

(b) Qualified
Preretirement Annuity Requirement. Except
as provided in Paragraph 7(c), the Qualified Preretirement Annuity requirement
of this Paragraph 7(b) shall apply with respect to a Participant if such
Participant was alive on August 23, 1984 and had at least one (1) Hour of
Service under the PSNC Plan on or after August 23, 1984. If such requirement
applies with respect to a Participant and such Participant dies prior to the
commencement of Distribution and is survived by such Participant’s spouse,
then:

 

(i) where
there is no Qualified Waiver with respect to the Qualified Preretirement
Survivor Annuity form of Distribution in effect at the time of such
Participant’s death, the spouse shall be the Participant’s Beneficiary and the
method of 

 

73

Distribution
to the Beneficiary shall be (A) by purchasing a Qualified Preretirement Survivor
Annuity with the amount distributable to such Beneficiary and distributing such
Qualified Preretirement Survivor Annuity to such Beneficiary or (B) at such
Beneficiary’s election, in a single cash payment; and

 

(ii) where
there is a Qualified Waiver in effect with respect to the Qualified
Preretirement Survivor Annuity form of Distribution, the Beneficiary shall be as
provided in or permitted by the Qualified Waiver and the method of Distribution
to such Beneficiary shall be a single cash payment.

 

(c) Exceptions. The
Qualified Annuity requirement of Paragraph 7(a) and the Qualified
Preretirement 

  
      Survivor Annuity requirement of Paragraph 7(b)
(as the case may be) shall not apply with respect to:

 

(i) any
Participant who first becomes a Participant in the PSNC Plan on or after April
1, 1985;

 

(ii) to the
extent permitted by applicable law, any Participant who first becomes a
Participant in the PSNC Plan prior to April 1, 1985;

 

(iii) any
Distribution commencing on or after January 1, 2000; and

 

(iv) any
Distribution with respect to a Participant whose Accounts do not exceed Five
Thousand Dollars ($5,000) in the aggregate.

 

(d) Notice
Requirements. The
Committee shall provide each Participant with respect to whom the Qualified
Joint and Survivor Annuity requirement of Paragraph 7(a) applies, within a
reasonable period of time prior to the commencement of Distribution, with a
written explanation of (i) the terms and conditions of the Qualified Annuity,
(ii) such Participant’s right to make, and the effect of, a Qualified Waiver
with respect to the Qualified Annuity form of Distribution, (iii) the rights of
such Participant’s spouse as to spousal consent with respect to the Qualified
Waiver and (iv) the right to make, and the effect of, a revocation of a
Qualified Waiver. The Committee shall also provide each Participant with respect
to whom the Qualified Preretirement Survivor Annuity requirement of Paragraph
7(b) applies with a written explanation with respect to the Qualified
Preretirement Survivor Annuity 

 

74

that is
comparable to the explanation hereinabove required with respect to the Qualified
Annuity. The Committee shall provide such written explanation with respect to
the Qualified Preretirement Survivor Annuity within the period (i) beginning on
the first day of the Plan Year in which such Participant attains age thirty-two
(32) and (ii) ending with the close of the Plan Year in which such Participant
attains age thirty-five (35). If such Participant becomes a Participant in the
Plan after the first day of the Plan Year in which such Participant attains age
thirty-two (32), however, the Committee shall provide the written explanation
with respect to the Qualified Preretirement Survivor Annuity to such Participant
no later than the close of the second Plan Year following such Participant’s
becoming a Participant in the Plan.

 

(e) Definitions. For
purposes of this Paragraph 7, the following terms shall have the following
meanings:

 

(i) Applicable
Election Period
means:

 

(A) in
the case of a Participant’s election to waive the Qualified Annuity form of
Distribution, the ninety (90) day period ending on the date of commencement of
Distribution; and

 

(B) in
the case of a Participant’s election to waive the Qualified Preretirement
Survivor Annuity form of Distribution, the period which begins on the first day
of the Plan Year in which such Participant attains age thirty-five (35) and ends
on the date of such Participant’s death; provided, however, in the case such
Participant separates from Service, such period under this subparagraph (B),
with respect to benefits accrued before the date of such separation from
Service.

 

(ii) Qualified
Annuity
means:

 

(A) with
respect to a married Participant, an annuity for the life of such Participant
with a survivor annuity for the life of such Participant’s spouse which is not
less than fifty percent (50%), nor greater than one hundred percent (100%), of
the amount which is payable during the joint lives of such Participant and such
spouse; and

 

75

(B) with
respect to an unmarried Participant, an annuity for the life of such
Participant.

 

(iii) Qualified
Preretirement Survivor Annuity means,
with respect to the surviving spouse of a Participant, an annuity for the life
of such surviving spouse.

 

(iv) Qualified
Waiver means,
with respect to a Participant, a written election by such Participant to waive
the Qualified Annuity form of Distribution or the Qualified Preretirement
Survivor Annuity form of Distribution (as the case may be). Such election must
be in writing and delivered to the Committee at any time during the Applicable
Election Period with respect to such election. If the Participant is married,
such election shall not be effective unless (A) the spouse of such Participant
consents in writing to such election and such spouse’s said consent acknowledges
the effect of such election and is witnessed by a member of the Committee or
other representative of the Plan or by a notary public or (B) it is established
to the satisfaction of the Committee or other representative of the Plan that
such consent may not be obtained because there is no spouse, because such spouse
cannot be located, or because of such circumstances as may be prescribed by
applicable Code regulations. Any such consent by a spouse, or establishment that
the consent of a spouse may not be obtained, shall be effective only with
respect to that spouse. Any Qualified Waiver by a Participant may be revoked
without the consent of such Participant’s spouse to such revocation, at any time
during the Applicable Election Period with respect to such Qualified Waiver by
written notice of revocation delivered to the Committee during such Applicable
Election Period. Following any such revocation, such Participant may make
another Qualified Waiver pursuant to the provisions set forth
above.

76

APPENDIX
II

Investment
Funds

 

Investment
Funds may be added or eliminated from the Plan at any time at the discretion of
the Employee Plans Committee or its delegate. Effective November 1, 2000,
Investment Funds may be added or eliminated from the Plan at any time at the
discretion of the Investment Committee. However, the Investment Committee may
not eliminate the SCANA Stock Fund. The following Investment Funds are available
under the Plan on and after November 1, 2000:

 

	
      IRT
      Stable Value Fund:

       
	
      The
      Fund seeks to preserve value while providing consistently high levels of
      current income and liquidity. The Fund invests in a diversified portfolio
      of investment companies issued by large insurance companies, banks and
      other financial institutions as determined by the Fund’s investment
      manager.

       

	
      PIMCO
      Total Return Fund:

       
	
      This
      Fund seeks to achieve total return consistent with preservation of
      capital. As determined by the Fund’s investment manager, the Fund invests
      at least 65% of assets in debt securities, including U.S. government and
      corporate bonds, and mortgage-related securities, and it may invest up to
      20% of assets in securities denominated in foreign currencies. The
      portfolio duration generally ranges from three to six years.

       

	
      American
      Century Income & Growth Fund:

       
	
      The
      American Century Income & Growth Fund seeks dividend growth, current
      income, and capital appreciation. As determined by the Fund’s investment
      manager, the Fund invests primarily in common stocks selected from a
      universe of the 1,500 largest companies traded in the United States. The
      Fund may also invest a small portion of assets in foreign
      securities.

       

	
      IRT
      500 Index Fund:

       
	
      As
      determined by the Fund’s investment manager, the Fund seeks to achieve
      investment returns that closely replicate the total returns generated by
      the Standard & Poor’s 500 Composite Stock Index, an unmanaged index
      comprised of U.S. common stocks weighted to companies with large market
      capitalizations. The portfolio is broadly diversified and consists of
      large cap, “blue chip” stocks.

       

 

	
      INVESCO
      Blue Chip Growth Fund:

       
	
      The
      Fund seeks to achieve long-term capital growth with investment income as a
      secondary objective. As determined by the Fund’s investment manager,
      investment policies mainly focus on large-capitalization common stocks
      with the potential for above-average earnings growth.

       

	
      MAS
      Mid-Cap Value Fund:

       
	
      The
      Fund seeks total return consistent with reasonable risk. As determined by
      the Fund’s investment manager, the Fund normally invests at least 65% of
      assets in equities of companies that are undervalued and fall in the range
      of the S&P MidCap 400 Index. The Fund aims to achieve a lower P/E
      ratio than the S&P 400. It may invest up to 5% of assets in foreign
      securities, excluding ADRs. The Fund may also invest in preferred stocks,
      convertibles, corporate debt, and U.S. government
obligations.

       

	
      The
      MFS Mid-Cap Growth Fund:

       
	
      The
      Fund seeks long-term growth of capital. As determined by the Fund’s
      investment manager, the Fund normally invests at least 65% of assets in
      equity securities of companies with medium market capitalizations. The
      Fund’s investment manager determines market capitalization by selecting
      companies that fall within the range of the S&P MidCap 400 index . It
      may invest up to 20% in debt rated below BBB and up to 35% of assets in
      foreign securities, not including ADRs. The Fund is
      nondiversified.

       

	
      Berger
      Small Cap Value Fund:

       
	
      The
      Fund seeks to achieve capital appreciation by investing in common stocks.
      As determined by the Fund’s investment manager, the Fund may invest in
      special situations (companies experiencing reorganizations, mergers or
      particular tax advantages) and unseasoned companies, as well as in
      options.

       

 

77

 

	
      INVESCO
      Small Company Growth Fund:

       
	
      The
      Fund seeks to achieve maximum long-term capital growth by investing its
      assets principally in a diversified group of equity securities as
      determined by the Fund’s investment manager. These are the securities of
      small or undiscovered companies that show potential for increased size,
      profitability, and industry/market awareness. Current income is not an
      objective of the Fund.

       

	
      EuroPacific
      Growth Fund:

       
	
      The
      Fund normally invests at least 65% of assets in equity securities of
      issuers domiciled in Europe or the Pacific Basin as determined by the
      Fund’s investment manager. It may invest up to 20% of assets in securities
      issued in developing countries. In addition to direct foreign investment,
      the Fund may purchase American depository receipts. It may also invest in
      convertible securities and straight debt securities; no more than 5% of
      assets may be invested in debt securities rated below
      investment-grade.

       

	
      SCANA
      Stock Fund:

       
	
      The
      SCANA Stock choice consists of SCANA Common Stock with cash for fractional
      shares. The investment objective is to provide participants with the
      opportunity for capital appreciation and dividend income, while
      participating in the financial future of SCANA. Because this is only one
      stock, it is considered riskier than other investment options that consist
      of many different securities.

       

	
      IRT
      Intermediate Return Fund:

       
	
      The
      Fund seeks to provide high total return through current income and capital
      appreciation from four asset classes: stable value, bond, value equity,
      and growth equity. As determined by the Fund’s investment manager, the
      target mix of the Fund is 40% stable value, 20% bond, and 30% value equity
      and 10% growth equity.

       

	
      IRT
      Growth and Income Fund:

       
	
      The
      Fund seeks to provide high total return through current income and capital
      appreciation from four asset classes: stable value, bond, value equity,
      and growth equity. As determined by the Funds’ investment manager, the
      target mix of the Fund is 20% stable value, 20% bond, 30% value equity and
      30% growth equity.

       

	
      IRT
      Maximum Appreciation Fund:

       
	
      The
      Fund seeks to achieve capital appreciation as a primary objective, with
      current income as a secondary goal, from four asset classes: stable value,
      bond, value equity and growth equity. As determined by the Fund’s
      investment manager, the target mix of the Fund is 10% stable value, 10%
      bond, 30% value equity, and 50% growth equity.

       

 

 

78EXHIBIT 4.1

 

 

 

 

ACE SECURITIES CORP.

Depositor

LITTON LOAN SERVICING LP

Servicer

WELLS FARGO BANK, NATIONAL ASSOCIATION

Master Servicer and Securities Administrator

 

HSBC BANK USA, NATIONAL ASSOCIATION

Trustee

 

POOLING AND SERVICING AGREEMENT

Dated as of October 1, 2005

 

 

ACE Securities Corp. Home Equity Loan Trust, Series 2005-AG1

Asset Backed Pass-Through Certificates

 

TABLE OF CONTENTS

ARTICLE I

 

DEFINITIONS

	
             
 	
            SECTION 1.01.
 	
            Defined Terms
 

	
             
 	
            SECTION 1.02.
 	
            Allocation of Certain Interest Shortfalls
 

ARTICLE II

 

CONVEYANCE OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF CERTIFICATES

	
             
 	
            SECTION 2.01.
 	
            Conveyance of the Mortgage Loans
 

	
             
 	
            SECTION 2.02.
 	
            Acceptance of REMIC I by Trustee
 

	
             
 	
            SECTION 2.03.
 	
            Repurchase or Substitution of Mortgage Loans
 

	
             
 	
            SECTION 2.04.
 	
            Representations and Warranties of the Master Servicer
 

	
             
 	
            SECTION 2.05.
 	
            Representations, Warranties and Covenants of the Servicer
 

	
             
 	
            SECTION 2.06.
 	
            Issuance of the REMIC I Regular Interests and the Class R-I Interest
 

	
             
 	
            SECTION 2.07.
 	
            Conveyance of the REMIC I Regular Interests; Acceptance of 
 

REMIC II, REMIC III, REMIC IV, REMIC V, REMIC VI, REMIC 

VII, REMIC VIII, REMIC IX, REMIC X and REMIC XI by the 

Trustee

	
             
 	
            SECTION 2.08.
 	
            Issuance of Residual Certificates
 

	
             
 	
            SECTION 2.09.
 	
            Establishment of the Trust
 

ARTICLE III

 

ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS; ACCOUNTS

	
             
 	
            SECTION 3.01.
 	
            The Servicer to Act as Servicer
 

	
             
 	
            SECTION 3.02.
 	
            Sub-Servicing Agreements Between the Servicer and Sub-Servicers
 

	
             
 	
            SECTION 3.03.
 	
            Successor Sub-Servicers
 

	
             
 	
            SECTION 3.04.
 	
            No Contractual Relationship Between Sub-Servicer, Trustee or the 
 

Certificateholders

	
             
 	
            SECTION 3.05.
 	
            Assumption or Termination of Sub-Servicing Agreement by 
 

Successor Servicer

	
             
 	
            SECTION 3.06.
 	
            Collection of Certain Mortgage Loan Payments
 

	
             
 	
            SECTION 3.07.
 	
            Collection of Taxes, Assessments and Similar Items; Servicing 
 

Accounts

	
             
 	
            SECTION 3.08.
 	
            Collection Account and Distribution Account
 

	
             
 	
            SECTION 3.09.
 	
            Withdrawals from the Collection Account and Distribution Account
 

	
             
 	
            SECTION 3.10.
 	
            Investment of Funds in the Investment Accounts
 

	
             
 	
            SECTION 3.11.
 	
            Maintenance of Hazard Insurance, Errors and Omissions and Fidelity 
 

Coverage and Primary Mortgage Insurance

	
             
 	
            SECTION 3.12.
 	
            Enforcement of Due-on-Sale Clauses; Assumption Agreements
 

	
             
 	
            SECTION 3.13.
 	
            Realization Upon Defaulted Mortgage Loans
 

	
             
 	
            SECTION 3.14.
 	
            Trustee to Cooperate; Release of Mortgage Files
 

	
             
 	
            SECTION 3.15.
 	
            Servicing Compensation
 

	
             
 	
            SECTION 3.16.
 	
            Collection Account Statements
 

	
             
 	
            SECTION 3.17.
 	
            Statement as to Compliance
 

 

 

	
             
 	
            SECTION 3.18.
 	
            Independent Public Accountants’ Servicing Report
 

	
             
 	
            SECTION 3.19.
 	
            Annual Certification
 

	
             
 	
            SECTION 3.20.
 	
            Access to Certain Documentation
 

	
             
 	
            SECTION 3.21.
 	
            Title, Management and Disposition of REO Property
 

	
             
 	
            SECTION 3.22.
 	
            Obligations of the Servicer in Respect of Prepayment Interest 
 

Shortfalls; Relief Act Interest Shortfalls

	
             
 	
            SECTION 3.23.
 	
            Obligations of the Servicer in Respect of Mortgage Rates and  
 

Monthly Payments

	
             
 	
            SECTION 3.24.
 	
            Reserve Fund
 

	
             
 	
            SECTION 3.25.
 	
            Advance Facility
 

	
             
 	
            SECTION 3.26.
 	
            The Servicer Indemnification
 

ARTICLE IV

 

ADMINISTRATION AND MASTER SERVICING OF THE MORTGAGE LOANS BY THE MASTER SERVICER

	
             
 	
            SECTION 4.01.
 	
            Master Servicer
 

	
             
 	
            SECTION 4.02.
 	
            REMIC-Related Covenants
 

	
             
 	
            SECTION 4.03.
 	
            Monitoring of Servicer
 

	
             
 	
            SECTION 4.04.
 	
            Fidelity Bond
 

	
             
 	
            SECTION 4.05.
 	
            Power to Act; Procedures
 

	
             
 	
            SECTION 4.06.
 	
            Due-on-Sale Clauses; Assumption Agreements
 

	
             
 	
            SECTION 4.07.
 	
            Documents, Records and Funds in Possession of Master Servicer To 
 

Be Held for Trustee

	
             
 	
            SECTION 4.08.
 	
            Standard Hazard Insurance and Flood Insurance Policies
 

	
             
 	
            SECTION 4.09.
 	
            Presentment of Claims and Collection of Proceeds
 

	
             
 	
            SECTION 4.10.
 	
            Maintenance of Primary Mortgage Insurance Policies
 

	
             
 	
            SECTION 4.11.
 	
            Trustee to Retain Possession of Certain Insurance Policies and 
 

Documents

	
             
 	
            SECTION 4.12.
 	
            Reserved
 

	
             
 	
            SECTION 4.13.
 	
            Compensation for the Master Servicer
 

	
             
 	
            SECTION 4.14.
 	
            REO Property
 

	
             
 	
            SECTION 4.15.
 	
            Annual Officer’s Certificate as to Compliance
 

	
             
 	
            SECTION 4.16.
 	
            Annual Independent Accountant’s Servicing Report
 

	
             
 	
            SECTION 4.17.
 	
            [Reserved.] 
 

	
             
 	
            SECTION 4.18.
 	
            Obligation of the Master Servicer in Respect of Prepayment Interest Shortfalls
 

ARTICLE V

 

PAYMENTS TO CERTIFICATEHOLDERS

	
             
 	
            SECTION 5.01.
 	
            Distributions
 

	
             
 	
            SECTION 5.02.
 	
            Statements to Certificateholders
 

	
             
 	
            SECTION 5.03.
 	
            Servicer Reports; P&I Advances
 

	
             
 	
            SECTION 5.04.
 	
            Allocation of Realized Losses
 

	
             
 	
            SECTION 5.05.
 	
            Compliance with Withholding Requirements
 

	
             
 	
            SECTION 5.06.
 	
            Reports Filed with Securities and Exchange Commission
 

	
             
 	
            SECTION 5.07.
 	
            Supplemental Interest Trust
 

	
             
 	
            SECTION 5.08.
 	
            Tax Treatment of Swap Payments and Swap Termination Payments
 

 

 

ARTICLE VI

 

THE CERTIFICATES

	
             
 	
            SECTION 6.01.
 	
            The Certificates
 

	
             
 	
            SECTION 6.02.
 	
            Registration of Transfer and Exchange of Certificates
 

	
             
 	
            SECTION 6.03.
 	
            Mutilated, Destroyed, Lost or Stolen Certificates
 

	
             
 	
            SECTION 6.04.
 	
            Persons Deemed Owners
 

	
             
 	
            SECTION 6.05.
 	
            Certain Available Information
 

ARTICLE VII

 

THE DEPOSITOR, THE SERVICER AND THE MASTER SERVICER

	
             
 	
            SECTION 7.01.
 	
            Liability of the Depositor, the Servicer and the Master Servicer
 

	
             
 	
            SECTION 7.02.
 	
            Merger or Consolidation of the Depositor, the Servicer or the Master 
 

Servicer

	
             
 	
            SECTION 7.03.
 	
            Limitation on Liability of the Depositor, the Servicer, the Master 
 

Servicer and Others

	
             
 	
            SECTION 7.04.
 	
            Limitation on Resignation of the Servicer
 

	
             
 	
            SECTION 7.05.
 	
            Limitation on Resignation of the Master Servicer
 

	
             
 	
            SECTION 7.06.
 	
            Assignment of Master Servicing
 

	
             
 	
            SECTION 7.07.
 	
            Rights of the Depositor in Respect of the Servicer and the Master 
 

Servicer

ARTICLE VIII

 

DEFAULT

	
             
 	
            SECTION 8.01.
 	
            Servicer Events of Default
 

	
             
 	
            SECTION 8.02.
 	
            Master Servicer to Act; Appointment of Successor
 

	
             
 	
            SECTION 8.03.
 	
            Notification to Certificateholders
 

	
             
 	
            SECTION 8.04.
 	
            Waiver of Events of Default
 

ARTICLE IX

 

CONCERNING THE TRUSTEE AND THE SECURITIES ADMINISTRATOR

	
             
 	
            SECTION 9.01.
 	
            Duties of Trustee and Securities Administrator
 

	
             
 	
            SECTION 9.02.
 	
            Certain Matters Affecting Trustee and Securities Administrator
 

	
             
 	
            SECTION 9.03.
 	
            Trustee and Securities Administrator not Liable for Certificates or 
 

Mortgage Loans

	
             
 	
            SECTION 9.04.
 	
            Trustee and Securities Administrator May Own Certificates
 

	
             
 	
            SECTION 9.05.
 	
            Fees and Expenses of Trustee and Securities Administrator
 

	
             
 	
            SECTION 9.06.
 	
            Eligibility Requirements for Trustee and Securities Administrator
 

	
             
 	
            SECTION 9.07.
 	
            Resignation and Removal of Trustee and Securities Administrator
 

	
             
 	
            SECTION 9.08.
 	
            Successor Trustee or Securities Administrator
 

	
             
 	
            SECTION 9.09.
 	
            Merger or Consolidation of Trustee or Securities Administrator
 

	
             
 	
            SECTION 9.10.
 	
            Appointment of Co-Trustee or Separate Trustee
 

	
             
 	
            SECTION 9.11.
 	
            Appointment of Office or Agency
 

	
             
 	
            SECTION 9.12.
 	
            Representations and Warranties
 

 

 

ARTICLE X

 

TERMINATION

	
             
 	
            SECTION 10.01.
 	
            Termination Upon Repurchase or Liquidation of All Mortgage 
 

Loans

	
             
 	
            SECTION 10.02.
 	
            Additional Termination Requirements
 

ARTICLE XI

 

REMIC PROVISIONS

	
             
 	
            SECTION 11.01.
 	
            REMIC Administration
 

	
             
 	
            SECTION 11.02.
 	
            Prohibited Transactions and Activities
 

	
             
 	
            SECTION 11.03.
 	
            Indemnification
 

ARTICLE XII

 

MISCELLANEOUS PROVISIONS

	
             
 	
            SECTION 12.01.
 	
            Amendment
 

	
             
 	
            SECTION 12.02.
 	
            Recordation of Agreement; Counterparts
 

	
             
 	
            SECTION 12.03.
 	
            Limitation on Rights of Certificateholders
 

	
             
 	
            SECTION 12.04.
 	
            Governing Law
 

	
             
 	
            SECTION 12.05.
 	
            Notices
 

	
             
 	
            SECTION 12.06.
 	
            Severability of Provisions
 

	
             
 	
            SECTION 12.07.
 	
            Notice to Rating Agencies
 

	
             
 	
            SECTION 12.08.
 	
            Article and Section References
 

	
             
 	
            SECTION 12.09.
 	
            Grant of Security Interest
 

	
             
 	
            SECTION 12.10.
 	
            Survival of Indemnification
 

 

 

 

 

 

 

 

 

Exhibits

	
            Exhibit A-1
 	
            Form of Class A Certificate
 	
             

	
            Exhibit A-2
 	
            Form of Class M Certificate
 	
             

	
            Exhibit A-3
 	
            Form of Class B Certificate
 	
             

	
            Exhibit A-4
 	
            Form of Class CE Certificate
 
	
            Exhibit A-5
 	
            Form of Class P Certificate
 	
             

	
            Exhibit A-6
 	
            Form of Residual Certificate
 	
             

							

	
            Exhibit B-1
 	
            Form of Transferor Representation Letter and Form of Transferee Representation Letter in Connection with Transfer of the Class B Certificates, Class P Certificates, Class CE Certificates and Residual Certificates Pursuant to Rule 144A Under the Securities Act
 
	
            Exhibit B-2
 	
            Form of Transferor Representation Letter and Form of Transferee Representation Letter in Connection with Transfer of the Class B Certificates, Class P Certificates, Class CE Certificates and Residual Certificates Pursuant to Rule 501(a) Under the Securities Act
 
	
            Exhibit B-3
 	
            Form of Transfer Affidavit and Agreement and Form of Transferor Affidavit in Connection with Transfer of Residual Certificates
 

	
            Exhibit C
 	
            Form of Servicer Certification
 	
             

	
            Exhibit D
 	
            Form of Power of Attorney
 	
             

	
            Schedule 1
 	
            Mortgage Loan Schedule
 	
             

	
            Schedule 2
 	
            Prepayment Charge Schedule
 	
             

	
            Schedule 3
 	
            Reserved.
 	
             

	
            Schedule 4
 	
            Standard File Layout - Delinquency Reporting
 
	
            Schedule 5
 	
            Standard File Layout - Scheduled/Scheduled
 	
             

	Schedule 6	Data Requirements of Servicing Advances Incurred Prior to Cut-off Date	 
								

                        

 

 

This Pooling and Servicing Agreement, is dated and effective as of October 1, 2005, among ACE SECURITIES CORP., as Depositor, LITTON LOAN SERVICING LP, as Servicer, WELLS FARGO BANK, NATIONAL ASSOCIATION, as Master Servicer and Securities Administrator and HSBC BANK USA, NATIONAL ASSOCIATION, as Trustee.

PRELIMINARY STATEMENT:

The Depositor intends to sell pass-through certificates to be issued hereunder in multiple classes, which in the aggregate will evidence the entire beneficial ownership interest of the Trust Fund created hereunder. The Trust Fund will consist of a segregated pool of assets comprised of the Mortgage Loans and certain other related assets subject to this Agreement.

REMIC I

As provided herein, the Trustee will elect to treat the segregated pool of assets consisting of the Mortgage Loans and certain other related assets subject to this Agreement (other than the Reserve Fund and, for the avoidance of doubt, the Supplemental Interest Trust and the Swap Agreement) as a REMIC for federal income tax purposes, and such segregated pool of assets will be designated as “REMIC I”. The Class R-I Interest will be the sole class of “residual interests” in REMIC I for purposes of the REMIC Provisions (as defined herein). The following table irrevocably sets forth the designation, the REMIC I Remittance Rate, the initial Uncertificated Balance and, for purposes of satisfying Treasury regulation Section 1.860G-1(a)(4)(iii), the “latest possible maturity date” for each of the REMIC I Regular Interests (as defined herein). None of the REMIC I
Regular Interests will be certificated.

 

	

            Designation
  	
             
  	
            REMIC I
  Remittance Rate
  	
             
  	
            Initial
  Uncertificated Balance
  	
             
  	
            Latest  Possible
  Maturity Date(1)
  	
             
  
	
            A-I
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            4,736,393.87 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-1-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            1,137,244.22 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-1-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            1,137,244.22 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-2-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            1,344,066.21 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-2-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            1,344,066.21 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-3-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            1,453,181.01 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-3-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            1,453,181.01 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-4-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,752,818.74 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-4-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,752,818.74 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-5-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,055,364.26 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-5-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,055,364.26 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-6-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,344,343.75 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-6-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
      3,344,343.75 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-7-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,617,071.83 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-7-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,617,071.83 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-8-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,868,159.88 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-8-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,868,159.88 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-9-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            4,094,995.31 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-9-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            4,094,995.31 
 	
             
 	
            August 25, 2035
 	
             
 

 

 

 

 

	
            I-10-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,923,045.34 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-10-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,923,045.34 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-11-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,758,326.13 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-11-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,758,326.13 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-12-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,600,533.21 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-12-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,600,533.21 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-13-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,449,375.51 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-13-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,449,375.51 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-14-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,304,572.77 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-14-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,304,572.77 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-15-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,165,858.48 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-15-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,165,858.48 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-16-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,032,975.33 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-16-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,032,975.33 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-17-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,905,678.58 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-17-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,905,678.58 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-18-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,783,733.05 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-18-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,783,733.05 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-19-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,722,043.68 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-19-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,722,043.68 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-20-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,658,997.37 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-20-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,658,997.37 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-21-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            9,681,232.26 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-21-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            9,681,232.26 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-22-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            8,027,231.36 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-22-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            8,027,231.36 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-23-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            6,614,753.87 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-23-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            6,614,753.87 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-24-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            24,628,330.70 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-24-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            24,628,330.70 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-25-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            411,022.33 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-25-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            411,022.33 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-26-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            392,538.36 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-26-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            392,538.36 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-27-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            374,901.11 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-27-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            374,901.11 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-28-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            358,071.42 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-28-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            358,071.42 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-29-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            342,010.99 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-29-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            342,010.99 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-30-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            326,685.00 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-30-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            326,685.00 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-31-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            312,058.81 >
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-31-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            312,058.81 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-32-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            298,100.22 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-32-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            298,100.22 
 	
             
 	
            August 25, 2035
 	
             
 

 

 

 

 

	
            I-33-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            284,783.12
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-33-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            284,783.12 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-34-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            275,012.71 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-34-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            275,012.71 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-35-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            262,610.22 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-35-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            262,610.22 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-36-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,684,587.48 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-36-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,684,587.48 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-37-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            70,013.34 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-37-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            70,013.34 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-38-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            67,587.54 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-38-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            67,587.54 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-39-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            65,246.17 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-39-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            65,246.17 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-40-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            62,985.56 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-40-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            62,985.56 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-41-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            60,803.30 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-41-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            60,803.30 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-42-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            1,694,206.20 
 	
             
 	
            August 25, 2035
 	
             
 
	
            I-42-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            1,694,206.20 
 	
             
 	
            August 25, 2035
 	
             
 
	
            A-II
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,991,369.98 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-1-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            958,358.31 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-1-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            958,358.31 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-2-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            1,132,647.68 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-2-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            1,132,647.68 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-3-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            1,224,598.97 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-3-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            1,224,598.97 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-4-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,319,806.66 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-4-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,319,806.66 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-5-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,574,762.47 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-5-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,574,762.47 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-6-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,818,286.15 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-6-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,818,286.15 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-7-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,048,114.73 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-7-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,048,114.73 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-8-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,259,707.21 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-8-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,259,707.21 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-9-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,450,861.94 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-9-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,450,861.94 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-10-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,305,959.31 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-10-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,305,959.31 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-11-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,167,150.05 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-11-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,167,150.05 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-12-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,034,177.59 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-12-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,034,177.59 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-13-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,906,796.66 
 	
             
 	
            August 25, 2035
 	
             
 

 

 

 

 

	
            II-13-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,906,796.66 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-14-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,784,771.06 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-14-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,784,771.06 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-15-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,667,876.20 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-15-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,667,876.20 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-16-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,555,895.27 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-16-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,555,895.27 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-17-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,448,622.01 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-17-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,448,622.01 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-18-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,345,858.23 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-18-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,345,858.23 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-19-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,293,872.46 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-19-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,293,872.46 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-20-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,240,743.18 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-20-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,240,743.18 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-21-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            8,158,396.64 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-21-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            8,158,396.64 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-22-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            6,764,566.29 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-22-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            6,764,566.29 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-23-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            5,574,268.26 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-23-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            5,574,268.26 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-24-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            20,754,350.79 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-24-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            20,754,350.79 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-25-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            346,369.46 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-25-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            346,369.46 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-26-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            330,792.97 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-26-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            330,792.97 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-27-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            315,930.03 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-27-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            315,930.03 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-28-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            301,747.61 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-28-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            301,747.61 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-29-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            288,213.45 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-29-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            288,213.45 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-30-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            275,298.20 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-30-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            275,298.20 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-31-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            262,972.68 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-31-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            262,972.68 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-32-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            251,209.74 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-32-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            251,209.74 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-33-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            239,987.39 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-33-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            239,987.39 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-34-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            231,753.84 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-34-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            231,753.84 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-35-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            221,302.23 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-35-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            221,302.23 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-36-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,105,010.32 
 	
             
 	
            August 25, 2035
 	
             
 

 

 

 

 

	
            II-36-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,105,010.32 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-37-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            59,000.40 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-37-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            59,000.40 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-38-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            56,956.17 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-38-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            56,956.17 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-39-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            54,983.09 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-39-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            54,983.09 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-40-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            53,078.08 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-40-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            53,078.08 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-41-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            51,239.08 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-41-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            51,239.08 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-42-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            1,427,711.45 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-42-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            1,427,711.45 
 	
             
 	
            August 25, 2035
 	
             
 
	
            A-III
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            4,876,321.74 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-1-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            1,170,841.97 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-1-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            1,170,841.97 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-2-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            1,383,774.12 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-2-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            1,383,774.12 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-3-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            1,496,112.52 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-3-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            1,496,112.52 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-4-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,834,145.60 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-4-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,834,145.60 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-5-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,145,629.27 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-5-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,145,629.27 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-6-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,443,146.11 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-6-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,443,146.11 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-7-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,723,931.43 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-7-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,723,931.43 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-8-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,982,437.41 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-8-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,982,437.41 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-9-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            4,215,974.26 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-9-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            4,215,974.26 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-10-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            4,038,944.35 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-10-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            4,038,944.35 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-11-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,869,358.82 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-11-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,869,358.82 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-12-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,706,904.20 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-12-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,706,904.20 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-13-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,551,280.84 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-13-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,551,280.84 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-14-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,402,200.17 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-14-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,402,200.17 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-15-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,259,387.82 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-15-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,259,387.82 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-16-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,122,578.90 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-16-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,122,578.90 
 	
             
 	
            August 25, 2035
 	
             
 

 

 

 

 

	
            III-17-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,991,521.41 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-17-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,991,521.41 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-18-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,865,973.22 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-18-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,865,973.22 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-19-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,802,461.36 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-19-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,802,461.36 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-20-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,737,552.45 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-20-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            2,737,552.45 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-21-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            9,967,246.10 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-21-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            9,967,246.10 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-22-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            8,264,380.85 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-22-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            8,264,380.85 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-23-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            6,810,174.36 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-23-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            6,810,174.36 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-24-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            25,355,928.51 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-24-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            25,355,928.51 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-25-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            423,165.21 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-25-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            423,165.21 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-26-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            404,135.17 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-26-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            404,135.17 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-27-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            385,976.86 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-27-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            385,976.86 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-28-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            368,649.97 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-28-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            368,649.97 
 	
             
 	
            August 25, 2035
 	
             
 
	
            II-29-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            352,115.06 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-29-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            352,115.06 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-30-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            336,336.30 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-30-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            336,336.30 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-31-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            321,278.01 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-31-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            321,278.01 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-32-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            306,907.03 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-32-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            306,907.03 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-33-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            293,196.50 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-33-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            293,196.50 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-34-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            283,137.45 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-34-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            283,137.45 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-35-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            270,368.55 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-35-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            270,368.55 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-36-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,793,441.70 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-36-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            3,793,441.70 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-37-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            72,081.75 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-37-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            72,081.75 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-38-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            69,584.29 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-38-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            69,584.29 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-39-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            67,173.74 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-39-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            67,173.74 
 	
             
 	
            August 25, 2035
 	
             
 

 

 

 

 

	
            III-40-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            64,846.36 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-40-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            64,846.36 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-41-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            62,599.62 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-41-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            62,599.62 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-42-A
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            1,744,258.34 
 	
             
 	
            August 25, 2035
 	
             
 
	
            III-42-B
 	
             
 	
            Variable(2)
 	
             
 	
            $
 	
            1,744,258.34 
 	
             
 	
            August 25, 2035
 	
             
 

 

________________

	
            (1)
 	
            For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations, the Distribution Date immediately following the maturity date for the Mortgage Loan with the latest maturity date has been designated as the “latest possible maturity date” for each REMIC I Regular Interest.
 

	
            (2)
 	
            Calculated in accordance with the definition of “REMIC I Remittance Rate” herein.
 

 

 

 

REMIC II

As provided herein, the Trustee will elect to treat the segregated pool of assets consisting of the REMIC I Regular Interests as a REMIC for federal income tax purposes, and such segregated pool of assets will be designated as “REMIC II.” The Class R-II Interest will evidence the sole class of “residual interests” in REMIC II for purposes of the REMIC Provisions. The following table irrevocably sets forth the designation, the REMIC II Remittance Rate, the initial aggregate Uncertificated Balance and, for purposes of satisfying Treasury regulation Section 1.860G-1(a)(4)(iii), the “latest possible maturity date” for each of the REMIC II Regular Interests.  None of the REMIC II Regular Interests will be certificated.

 

	
            
Designation
 
 	
            
REMIC II
 Remittance

Rate
 
 	
            
Initial
 Uncertificated Balance
 
 	
            
Latest Possible
 Maturity Date (1)
 
 
	
            AA
 	
            Variable(2)
 	
            $
 	
            339,564,405.96 
 	
            August 25, 2035
 
	
            A-1A
 	
            Variable(2)
 	
            $
 	
            905,970.00 
 	
            August 25, 2035
 
	
            A-1B1
 	
            Variable(2)
 	
            $
 	
            610,770.00 
 	
            August 25, 2035
 
	
            A-1B2
 	
            Variable(2)
 	
            $
 	
            152,695.00 
 	
            August 25, 2035
 
	
            A-2A
 	
            Variable(2)
 	
            $
 	
            498,540.00 
 	
            August 25, 2035
 
	
            A-2B
 	
            Variable(2)
 	
            $
 	
            216,890.00 
 	
            August 25, 2035
 
	
            A-2C
 	
            Variable(2)
 	
            $
 	
            123,340.00 
 	
            August 25, 2035
 
	
            A-2D
 	
            Variable(2)
 	
            $
 	
            93,965.00 
 	
            August 25, 2035
 
	
            M-1
 	
            Variable(2)
 	
            $
 	
            136,865.00 
 	
            August 25, 2035
 
	
            M-2
 	
            Variable(2)
 	
            $
 	
            126,470.00 
 	
            August 25, 2035
 
	
            M-3
 	
            Variable(2)
 	
            $
 	
            88,355.00 
 	
            August 25, 2035
 
	
            M-4
 	
            Variable(2)
 	
            $
 	
            65,835.00 
 	
            August 25, 2035
 
	
            M-5
 	
            Variable(2)
 	
            $
 	
            62,370.00 
 	
            August 25, 2035
 
	
            M-6
 	
            Variable(2)
 	
            $
 	
            53,705.00 
 	
            August 25, 2035
 
	
            B-1
 	
            Variable(2)
 	
            $
 	
            57,170.00 
 	
            August 25, 2035
 
	
            B-2
 	
            Variable(2)
 	
            $
 	
            41,580.00 
 	
            August 25, 2035
 
	
            B-3
 	
            Variable(2)
 	
            $
 	
            38,115.00 
 	
            August 25, 2035
 
	
            B-4
 	
            Variable(2)
 	
            $
 	
            34,650.00 
 	
            August 25, 2035
 
	
            B-5
 	
            Variable(2)
 	
            $
 	
            34,650.00 
 	
            August 25, 2035
 
	
            ZZ
 	
            Variable(2)
 	
            $
 	
            3,587,950.84 
 	
            August 25, 2035
 
	
            P
 	
            Variable(2)
 	
            $
 	
            100.00 
 	
            August 25, 2035
 
	
            IO
 	
            Variable(2)
 	
             
 	
            (3)
 	
            August 25, 2035
 
	
            IA-SUB
 	
            Variable(2)
 	
            $
 	
            6,007.67 
 	
            August 25, 2035
 
	
            IA-GRP
 	
            Variable(2)
 	
            $
 	
            24,127.07 
 	
            August 25, 2035
 
	
            IB-SUB
 	
            Variable(2)
 	
            $
 	
            5,062.64 
 	
            August 25, 2035
 
	
            IB-GRP
 	
            Variable(2)
 	
            $
 	
            20,331.94 
 	
            August 25, 2035
 
	
            II-SUB
 	
            Variable(2)
 	
            $
 	
            6,185.16 
 	
            August 25, 2035
 
	
            II-GRP
 	
            Variable(2)
 	
            $
 	
            24,839.86 
 	
            August 25, 2035
 
	
            XX
 	
            Variable(2)
 	
            $
 	
            346,407,737.46 
 	
            August 25, 2035
 

___________________________

	
            (1)
 	
            For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations, the Distribution Date immediately following the maturity date for the Mortgage Loan with the latest maturity date has been designated as the “latest possible maturity date” for each REMIC II Regular Interest.
 

	
            (2)
 	
            Calculated in accordance with the definition of “REMIC II Remittance Rate” herein.
 

	
            (3)
 	
            REMIC II Regular Interest IO will not have an Uncertificated Balance, but will accrue interest on its Uncertificated Notional Amount.
 

 

 

REMIC III

As provided herein, the Trustee will elect to treat the segregated pool of assets consisting of the REMIC II Regular Interests as a REMIC for federal income tax purposes, and such segregated pool of assets will be designated as “REMIC III.” The Class R-III Interest will evidence the sole class of “residual interests” in REMIC III for purposes of the REMIC Provisions. The following table irrevocably sets forth the designation, the Pass-Through Rate, the initial aggregate Certificate Principal Balance and, for purposes of satisfying Treasury regulation Section 1.860G-1(a)(4)(iii), the “latest possible maturity date” for the indicated Classes of Certificates.

 

	
            
Designation
 
 	
            
Pass-Through Rate
 
 	
            
Initial Aggregate Certificate Principal Balance
 
 	
            
Latest Possible
 Maturity Date (1)
 
 
	
            Class A-1A
 	
            Variable(2)
 	
            $
 	
            181,194,000.00
 	
            August 25, 2035
 
	
            Class A-1B1
 	
            Variable(2)
 	
            $
 	
            122,154,000.00
 	
            August 25, 2035
 
	
            Class A-1B2
 	
            Variable(2)
 	
            $
 	
            30,539,000.00
 	
            August 25, 2035
 
	
            Class A-2A
 	
            Variable(2)
 	
            $
 	
            99,708,000.00
 	
            August 25, 2035
 
	
            Class A-2B
 	
            Variable(2)
 	
            $
 	
            43,378,000.00
 	
            August 25, 2035
 
	
            Class A-2C
 	
            Variable(2)
 	
            $
 	
            24,668,000.00
 	
            August 25, 2035
 
	
            Class A-2D
 	
            Variable(2)
 	
            $
 	
            18,793,000.00
 	
            August 25, 2035
 
	
            Class M-1
 	
            Variable(2)  
 	
            $
 	
            27,373,000.00
 	
            August 25, 2035
 
	
            Class M-2
 	
            Variable(2)
 	
            $
 	
            25,294,000.00
 	
            August 25, 2035
 
	
            Class M-3
 	
            Variable(2)
 	
            $
 	
            17,671,000.00
 	
            August 25, 2035
 
	
            Class M-4
 	
            Variable(2)
 	
            $
 	
            13,167,000.00
 	
            August 25, 2035
 
	
            Class M-5
 	
            Variable(2)
 	
            $
 	
            12,474,000.00
 	
            August 25, 2035
 
	
            Class M-6
 	
            Variable(2)
 	
            $
 	
            10,741,000.00
 	
            August 25, 2035
 
	
            Class B-1 Interest
 	
            Variable(2)
 	
            $
 	
            11,434,000.00
 	
            August 25, 2035
 
	
            Class B-2 Interest
 	
            Variable(2)
 	
            $
 	
            8,316,000.00
 	
            August 25, 2035
 
	
            Class B-3 Interest
 	
            Variable(2)
 	
            $
 	
            7,623,000.00
 	
            August 25, 2035
 
	
            Class B-4 Interest
 	
            Variable(2)
 	
            $
 	
            6,930,000.00
 	
            August 25, 2035
 
	
            Class B-5 Interest
 	
            Variable(2)
 	
            $
 	
            6,930,000.00
 	
            August 25, 2035
 
	
            Class P Interest
 	
            N/A(3)
 	
            $
 	
            100.00
 	
            August 25, 2035
 
	
            Class CE Interest
 	
            N/A(4)
 	
            $
 	
            24,601,583.59
 	
            August 25, 2035
 
	
            REMIC III Regular Interest IO
 	
            N/A(5)
 	
             
 	
            (5)
 	
            August 25, 2035
 

_________________

	
            (1)
 	
            For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations, the Distribution Date immediately following the maturity date for the Mortgage Loan with the latest maturity date has been designated as the “latest possible maturity date” for each Class of Certificates.
 

	
            (2)
 	
            Calculated in accordance with the definition of “Pass-Through Rate” herein.
 
	
            (3)
 	
            The Class P Interest will not accrue interest.
 	
             

	
            (4)
 	
            The Class CE Interest will accrue interest at its variable Pass-Through Rate on the Uncertificated Notional Amount of the Class CE Interest outstanding from time to time which shall equal the Uncertificated Balance of the REMIC II Regular Interests (other than REMIC II Regular Interest P). The Class CE Interest will not accrue interest on their Certificate Principal Balance.
 
	
            (5)
 	
            The REMIC III Regular Interest IO will not have a Pass-Through Rate or a Certificate Principal Balance, but will be entitled to 100% of amounts distributed on REMIC II Regular Interest IO.
 

 

 

 

REMIC IV

As provided herein, the Trustee will elect to treat the segregated pool of assets consisting of the Class CE Interest as a REMIC for federal income tax purposes, and such segregated pool of assets will be designated as “REMIC IV”.  The Class R-IV Interest represents the sole class of “residual interests” in REMIC IV for purposes of the REMIC Provisions.

The following table sets forth the designation, the Pass Through Rate, initial aggregate Certificate Principal Balance and, for purposes of satisfying Treasury regulation Section 1.860G-1(a)(4)(iii), the latest possible maturity date” for the indicated Class of Certificates that represents a regular interest in REMIC IV created hereunder:

 

	
            
Designation
 
 	
            
Pass-Through Rate
 
 	
            
Initial Aggregate Certificate Principal Balance
 
 	
            
Latest Possible
 Maturity Date(1)
 
 
	
            Class CE
 	
            Variable(2)
 	
            $        24,601,583.59
 	
            August 25, 2035
 

_______________

	
            (1)
 	
            For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations, the Distribution Date immediately following the maturity date for the Mortgage Loan with the latest maturity date has been designated as the “latest possible maturity date” for the Class CE Certificates.
 

	
            (2)
 	
            The Class CE Certificates will receive 100% of amounts received in respect of the Class CE Interest.
 

 

 

REMIC V

As provided herein, the Trustee will elect to treat the segregated pool of assets consisting of the Class P Interest as a REMIC for federal income tax purposes, and such segregated pool of assets will be designated as “REMIC V”. The Class R-V Interest represents the sole class of “residual interests” in REMIC V for purposes of the REMIC Provisions.

The following table sets forth the designation, Pass-Through Rate, initial aggregate Certificate Principal Balance and, for purposes of satisfying Treasury regulation Section 1.860G-1(a)(4)(iii), the “latest possible maturity date” for the indicated Class of Certificates that represents a regular interest in REMIC V created hereunder:

	
            
Designation
 
 	
            
Pass-Through Rate
 
 	
            
Initial Aggregate 

Certificate Principal Balance
 
 	
            
Latest Possible

Maturity Date(1)
 
 
	
            Class P
 	
            0.00%(2)
 	
            $                    100.00
 	
            August 25, 2035
 

_______________

	
            (1)
 	
            For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations, the Distribution Date immediately following the maturity date for the Mortgage Loan with the latest maturity date has been designated as the “latest possible maturity date” for the Class P Certificates.
 

	
            (2)
 	
            The Class P Certificates will receive 100% of amounts received in respect of the Class P Interest.
 

 

 

 

REMIC VI

As provided herein, the Trustee will elect to treat the segregated pool of assets consisting of the REMIC III Regular Interest IO as a REMIC for federal income tax purposes, and such segregated pool of assets will be designated as “REMIC VI”. The Class R-VI Interest represents the sole class of “residual interests” in REMIC VI for purposes of the REMIC Provisions.

The following table sets forth the designation, Pass-Through Rate, initial Uncertificated Notional Amount and, for purposes of satisfying Treasury regulation Section 1.860G-1(a)(4)(iii), the “latest possible maturity date” for the indicated class of interests that represents a regular interest in REMIC VI created hereunder:

	
            
Designation
 
 	
            
Pass-Through Rate
 
 	
            
Uncertificated Notional Amount
 
 	
            
Latest Possible

Maturity Date(1)
 
 
	
            Class IO Interest(2)
 	
            (3)
 	
            (4)
 	
            August 25, 2035
 

_______________

	
            (1)
 	
            For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations, the Distribution Date immediately following the maturity date for the Mortgage Loan with the latest maturity date has been designated as the “latest possible maturity date” for Class IO Interest.
 
	
            (2)
 	
            Class IO Interest will be held as an asset of the Supplemental Interest Trust established by the Securities Administrator.  
 
	
            (3)
 	
            Class IO Interest will not have a Pass-Through Rate, but will receive 100% of amounts received in respect of the REMIC III Regular Interest IO.
 
	
            (4)
 	
            Class IO Interest will not have a Notional Amount equal to the Uncertificated Notional Amount of the REMIC III Regular Interest IO.
 

 

 

REMIC VII

As provided herein, the Trustee shall make an election to treat the segregated pool of assets consisting of the Class B-1 Interest as a REMIC for federal income tax purposes, and such segregated pool of assets will be designated as “REMIC VII.”  The Class R-VII Interest represents the sole class of “residual interests” in REMIC VII for purposes of the REMIC Provisions.  

The following table sets forth the designation, the Pass Through Rate, initial aggregate Certificate Principal Balance and, for purposes of satisfying Treasury regulation Section 1.860G-1(a)(4)(iii), the “latest possible maturity date” for the indicated Class of Certificates that represents a regular interest in REMIC VII created hereunder:

	
            
Class Designation
  
  	
            
Pass-Through
  Rate
  
  	
            
Initial Aggregate
  Certificate  Principal Balance
  
  	
            
Latest Possible
  Maturity  Date(1)
  
  
	
            Class B-1                                                                                         
 	
            Variable(2)
 	
            $       11,434,000.00
 	
            August 25, 2035
 

__________________

	
            (1)
 	
  For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations, the Distribution Date following the maturity date for the Mortgage Loan with the latest maturity date has been designated as the “latest possible maturity date” for the Class of Certificates that represent the “regular interest” in REMIC VII.
 

	
            (2)
 	
            The Class B-1 Certificates will receive 100% of amounts received in respect of the Class B-1 Interest.
 

 

 

REMIC VIII

As provided herein, the Trustee shall make an election to treat the segregated pool of assets consisting of the Class B-2 Interest as a REMIC for federal income tax purposes, and such segregated pool of assets will be designated as “REMIC VIII.”  The Class R-VIII Interest represents the sole class of “residual interests” in REMIC VIII for purposes of the REMIC Provisions.  

The following table sets forth the designation, the Pass Through Rate, initial aggregate Certificate Principal Balance and, for purposes of satisfying Treasury regulation Section 1.860G-1(a)(4)(iii), the “latest possible maturity date” for the indicated Class of Certificates that represents a regular interest in REMIC VIII created hereunder:

	
            
Class  Designation
  
  	
            
Pass-Through
  Rate
  
  	
            
Initial  Aggregate 
  Certificate Principal  Balance
  
  	
            
Latest  Possible
  Maturity Date(1)
  
  
	
            Class B-2                                                                                         
 	
            Variable(2)
 	
            $       8,316,000.00
 	
            August 25, 2035
 

__________________

	
            (1)
 	
  For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations, the Distribution Date following the maturity date for the Mortgage Loan with the latest maturity date has been designated as the “latest possible maturity date” for the Class of Certificates that represent the “regular interest” in REMIC VIII.
 

	
            (2)
 	
            The Class B-2 Certificates will receive 100% of amounts received in respect of the Class B-2 Interest.
 

 

 

REMIC IX

As provided herein, the Trustee shall make an election to treat the segregated pool of assets consisting of the Class B-3 Interest as a REMIC for federal income tax purposes, and such segregated pool of assets will be designated as “REMIC IX.”  The Class R-IX Interest represents the sole class of “residual interests” in REMIC IX for purposes of the REMIC Provisions.  

The following table sets forth the designation, the Pass Through Rate, initial aggregate Certificate Principal Balance and, for purposes of satisfying Treasury regulation Section 1.860G-1(a)(4)(iii), the “latest possible maturity date” for the indicated Class of Certificates that represents a regular interest in REMIC IX created hereunder:

	
            
Class  Designation
  
  	
            
Pass-Through
  Rate
  
  	
            
Initial  Aggregate 
  Certificate Principal Balance
  
  	
            
Latest  Possible
  Maturity Date(1)
  
  
	
            Class B-3                                                                                         
 	
            Variable(2)
 	
            $       7,623,000.00
 	
            August 25, 2035
 

__________________

	
            (1)
 	
            For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations, the Distribution Date following the maturity date for the Mortgage Loan with the latest maturity date has been designated as the “latest possible maturity date” for the Class of Certificates that represent the “regular interest” in REMIC IX.
 

	
            (2)
 	
            The Class B-3 Certificates will receive 100% of amounts received in respect of the Class B-3 Interest.
 

 

 

 

 

REMIC X

As provided herein, the Trustee shall make an election to treat the segregated pool of assets consisting of the Class B-4 Interest as a REMIC for federal income tax purposes, and such segregated pool of assets will be designated as “REMIC X.”  The Class R-X Interest represents the sole class of “residual interests” in REMIC X for purposes of the REMIC Provisions.  

The following table sets forth the designation, the Pass Through Rate, initial aggregate Certificate Principal Balance and, for purposes of satisfying Treasury regulation Section 1.860G-1(a)(4)(iii), the “latest possible maturity date” for the indicated Class of Certificates that represents a regular interest in REMIC X created hereunder:

	
            
Class  Designation
  
  	
            
Pass-Through
  Rate
  
  	
            
Initial  Aggregate 
  Certificate Principal  Balance
  
  	
            
Latest  Possible
  Maturity Date(1)
  
  
	
            Class B-4                                                                                         
 	
            Variable(2)
 	
            $       6,930,000.00
 	
            August 25, 2035
 

__________________

	
            (1)
 	
  For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations, the Distribution Date following the maturity date for the Mortgage Loan with the latest maturity date has been designated as the “latest possible maturity date” for the Class of Certificates that represent the “regular interest” in REMIC X.
 

	
            (2)
 	
            The Class B-4 Certificates will receive 100% of amounts received in respect of the Class B-4 Interest.
 

 

 

REMIC XI

As provided herein, the Trustee shall make an election to treat the segregated pool of assets consisting of the Class B-5 Interest as a REMIC for federal income tax purposes, and such segregated pool of assets will be designated as “REMIC XI.”  The Class R-XI Interest represents the sole class of “residual interests” in REMIC XI for purposes of the REMIC Provisions.  

The following table sets forth the designation, the Pass Through Rate, initial aggregate Certificate Principal Balance and, for purposes of satisfying Treasury regulation Section 1.860G-1(a)(4)(iii), the “latest possible maturity date” for the indicated Class of Certificates that represents a regular interest in REMIC XI created hereunder:

	
            
Class  Designation
  
  	
            
Pass-Through
  Rate
  
  	
            
Initial  Aggregate 
  Certificate Principal  Balance
  
  	
            
Latest  Possible
  Maturity Date(1)
  
  
	
            Class B-5                                                                                         
 	
            Variable(2)
 	
            $       6,930,000.00
 	
            August 25, 2035
 

__________________

	
            (1)
 	
            For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations, the Distribution Date following the maturity date for the Mortgage Loan with the latest maturity date has been designated as the “latest possible maturity date” for the Class of Certificates that represent the “regular interest” in REMIC XI.
 

	
            (2)
 	
            The Class B-5 Certificates will receive 100% of amounts received in respect of the Class B-5 Interest.
 

 

As of the Cut-off Date, the Group IA Mortgage Loans had an aggregate Scheduled Principal Balance equal to $241,270,707.35, the Group IB Mortgage Loans had an aggregate scheduled Principal Balance equal to $203,319,378.62 and the Group II Mortgage Loans had an aggregate Scheduled Principal Balance equal to $248,398,597.62.

In consideration of the mutual agreements herein contained, the Depositor, the Servicer, the Master Servicer, the Securities Administrator and the Trustee agree as follows:

 

 

ARTICLE I

 

DEFINITIONS

	
            SECTION 1.01.
 	
            Defined Terms.
 

Whenever used in this Agreement, including, without limitation, in the Preliminary Statement hereto, the following words and phrases, unless the context otherwise requires, shall have the meanings specified in this Article. Unless otherwise specified, all calculations described herein shall be made on the basis of a 360-day year consisting of twelve 30-day months.

“Accepted Master Servicing Practices”: With respect to any Mortgage Loan, as applicable, either (x) those customary mortgage master servicing practices of prudent mortgage servicing institutions that master service mortgage loans of the same type and quality as such Mortgage Loan in the jurisdiction where the related Mortgaged Property is located, to the extent applicable to the Master Servicer (except in its capacity as successor to any Servicer), or (y) as provided in Section 3.01 hereof, but in no event below the standard set forth in clause (x).

“Accepted Servicing Practices”: As defined in Section 3.01.

“Account”: The Collection Account and the Distribution Account as the context may require.

“Accrued Certificate Interest”: With respect to any Class A Certificate, Mezzanine Certificate, Class B Certificate or Class CE Certificate and each Distribution Date, interest accrued during the related Interest Accrual Period at the Pass-Through Rate for such Certificate for such Distribution Date on the Certificate Principal Balance, in the case of the Class A Certificates, the Mezzanine Certificates and the Class B Certificates, or on the Notional Amount in the case of the Class CE Certificates, of such Certificate immediately prior to such Distribution Date.  The Class P Certificates are not entitled to distributions in respect of interest and, accordingly, will not accrue interest.  All distributions of interest on the Class A Certificates, the Mezzanine Certificates and the Class B Certificates will be calculated on the basis
of a 360-day year and the actual number of days in the applicable Interest Accrual Period.  All distributions of interest on the Class CE Certificates will be based on a 360-day year consisting of twelve 30-day months.  Accrued Certificate Interest with respect to each Distribution Date, as to any Class A Certificate, Mezzanine Certificate, Class B Certificate or Class CE Certificate shall be reduced by an amount equal to the portion allocable to such Certificate pursuant to Section 1.02 hereof, if any, of the sum of (a) the aggregate Prepayment Interest Shortfall, if any, for such Distribution Date to the extent not covered by payments pursuant to Section 3.22 or Section 4.18 of this Agreement and (b) the aggregate amount of any Relief Act Interest Shortfall, if any, for such Distribution Date. In addition, Accrued Certificate Interest with respect to each Distribution Date, as to any Class CE Certificate, shall be reduced by an amount equal to the portion allocable to
such Class CE Certificate of Realized Losses, if any, pursuant to Section 1.02 and Section 5.04 hereof. 

 

 

“Adjustable Rate Mortgage Loan”:  Each of the Mortgage Loans identified in the Mortgage Loan Schedule as having a Mortgage Rate that is subject to adjustment.

“Adjustment Date”: With respect to each Adjustable Rate Mortgage Loan, the first day of the month in which the Mortgage Rate of an Adjustable Rate Mortgage Loan changes pursuant to the related Mortgage Note. The first Adjustment Date following the Cut-off Date as to each Adjustable Rate Mortgage Loan is set forth in the Mortgage Loan Schedule.

“Administration Fees”: The sum of (i) the Servicing Fee, (ii) the Master Servicing Fee and (iii) any fees payable in connection with any lender paid mortgage insurance policies.

“Administration Fee Rate”: The sum of (i) the Servicing Fee Rate, (ii) the Master Servicing Fee Rate and (iii) the rate at which any fee payable in connection with any lender paid mortgage insurance is calculated. 

“Advance Facility”: As defined in Section 3.25(a).

“Advance Financing Person”: As defined in Section 3.25(a).

“Advance Reimbursement Amounts”:  As defined in Section 3.25(b).

“Affiliate”: With respect to any specified Person, any other Person controlling or controlled by or under common control with such specified Person. For the purposes of this definition, “control” when used with respect to any specified Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise, and the terms “controlling” and “controlled” have meanings correlative to the foregoing.

“Aggregate Loss Severity Percentage”: With respect to any Distribution Date, the percentage equivalent of a fraction, the numerator of which is the aggregate amount of Realized Losses incurred on any Mortgage Loans from the Cut-off Date to the last day of the preceding calendar month and the denominator of which is the aggregate principal balance of such Mortgage Loans immediately prior to the liquidation of such Mortgage Loans.

“Agreement”: This Pooling and Servicing Agreement, including all exhibits and schedules hereto and all amendments hereof and supplements hereto.

“Allocated Realized Loss Amount”: With respect to any Class of Mezzanine Certificates or Class B Certificates and any Distribution Date, an amount equal to the sum of any Realized Loss allocated to that Class of Certificates on the Distribution Date and any Allocated Realized Loss Amount for that Class remaining unpaid from the previous Distribution Date.

“Amounts Held for Future Distribution”: As to any Distribution Date, the aggregate amount held in the Collection Account at the close of business on the immediately preceding Determination Date on account of (i) all Monthly Payments or portions thereof received in respect of the Mortgage Loans due after the related Due Period and (ii) Principal Prepayments and Liquidation Proceeds received in respect of such Mortgage Loans after the last day of the related Prepayment Period.

 

 

“Assignment”: An assignment of Mortgage, notice of transfer or equivalent instrument, in recordable form, which is sufficient under the laws of the jurisdiction where the related Mortgaged Property is located to reflect of record the sale and assignment of the Mortgage, which assignment, notice of transfer or equivalent instrument may be in the form of one or more blanket assignments covering Mortgages secured by Mortgaged Properties located in the same county, if permitted by law.

“Available Distribution Amount”: With respect to any Distribution Date, an amount equal to (1) the sum of (a) the aggregate of the amounts on deposit in the Collection Account and the Distribution Account as of the close of business on the related Servicer Remittance Date, (b) the aggregate of any amounts deposited in the Distribution Account by the Servicer or the Master Servicer in respect of Prepayment Interest Shortfalls for such Distribution Date pursuant to Section 3.22 or Section 4.18 of this Agreement, (c) the aggregate of any P&I Advances for such Distribution Date made by the Servicer pursuant to Section 5.03 of this Agreement and (d) the aggregate of any P&I Advances made by a successor servicer (including the Master Servicer) for such Distribution Date pursuant to Section 8.02 of this
Agreement, reduced (to not less than zero) by (2) the portion of the amount described in clause (1)(a) above that represents (i) Amounts Held for Future Distribution, (ii) Principal Prepayments on the Mortgage Loans received after the related Prepayment Period (together with any interest payments received with such Principal Prepayments to the extent they represent the payment of interest accrued on the Mortgage Loans during a period subsequent to the related Prepayment Period), (iii) Liquidation Proceeds and Insurance Proceeds received in respect of the Mortgage Loans after the related Prepayment Period, (iv) amounts reimbursable or payable to the Depositor, the Servicer, the Trustee, the Master Servicer, the Securities Administrator or the Custodian pursuant to Section 3.09 or 9.05 of this Agreement or otherwise payable in respect of Extraordinary Trust Fund Expenses, (v) amounts deposited in the Collection Account or the Distribution Account in error, (vi) the amount of any
Prepayment Charges collected by the Servicer in connection with the Principal Prepayment of any of the Mortgage Loans and (vii) amounts reimbursable to a successor servicer (including the Master Servicer) pursuant to Section 8.02 of this Agreement.  

“Balloon Mortgage Loan”:  A Mortgage Loan that provides for the payment of the unamortized principal balance of such Mortgage Loan in a single payment, that is substantially greater than the preceding monthly payment at the maturity of such Mortgage Loan.

“Balloon Payment”:  A payment of the unamortized principal balance of a Mortgage Loan in a single payment, that is substantially greater than the preceding Monthly Payment at the maturity of such Mortgage Loan.

“Bankruptcy Code”: The Bankruptcy Reform Act of 1978 (Title 11 of the United States Code), as amended.

“Book-Entry Certificates”: The Offered Certificates and Class B Certificates for so long as the Certificates of such Class shall be registered in the name of the Depository or its nominee.

“Book-Entry Custodian”: The custodian appointed pursuant to Section 6.01.

 

 

“Business Day”: Any day other than a Saturday, a Sunday or a day on which banking or savings and loan institutions in the States of New York, Maryland, Minnesota, Texas or in the city in which the Corporate Trust Office of the Trustee is located, are authorized or obligated by law or executive order to be closed.

“Cash-Out Refinancing”: A Refinanced Mortgage Loan the proceeds of which are more than a nominal amount in excess of the principal balance of any existing first mortgage plus any subordinate mortgage on the related Mortgaged Property and related closing costs.

“Certificate”: Any one of ACE Securities Corp., Asset Backed Pass-Through Certificates, Series 2005-AG1, Class A-1A, Class A-1B1, Class A-1B2, Class A-2A, Class A-2B, Class A-2C, Class A-2D, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class B-1, Class B-2, Class B-3, Class B-4, Class B-5, Class P, Class CE, Class R and Class R-X Certificates issued under this Agreement. 

“Certificate Factor”: With respect to any Class of Certificates (other than the Residual Certificates) as of any Distribution Date, a fraction, expressed as a decimal carried to six places, the numerator of which is the aggregate Certificate Principal Balance (or Notional Amount, in the case of the Class CE Certificates) of such Class of Certificates on such Distribution Date (after giving effect to any distributions of principal and allocations of Realized Losses resulting in reduction of the Certificate Principal Balance (or Notional Amount, in the case of the Class CE Certificates) of such Class of Certificates to be made on such Distribution Date), and the denominator of which is the initial aggregate Certificate Principal Balance (or Notional Amount, in the case of the Class CE Certificates) of such Class of Certificates as of
the Closing Date.

“Certificate Margin”: With respect to the Class A-1A Certificates and, for purposes of the definition of “Marker Rate”, REMIC I Regular Interest A-1A, 0.260% in the case of each Distribution Date through and including the Optional Termination Date and 0.520% in the case of each Distribution Date thereafter.

With respect to the Class A-1B1 Certificates and, for purposes of the definition of “Marker Rate”, REMIC I Regular Interest A-1B1, 0.270% in the case of each Distribution Date through and including the Optional Termination Date and 0.540% in the case of each Distribution Date thereafter.

With respect to the Class A-1B2 Certificates and, for purposes of the definition of “Marker Rate”, REMIC I Regular Interest A-1B2, 0.290% in the case of each Distribution Date through and including the Optional Termination Date and 0.580% in the case of each Distribution Date thereafter.

With respect to the Class A-2A Certificates and, for purposes of the definition of “Marker Rate”, REMIC I Regular Interest A-2A, 0.140% in the case of each Distribution Date through and including the Optional Termination Date and 0.280% in the case of each Distribution Date thereafter.

With respect to the Class A-2B Certificates and, for purposes of the definition of “Marker Rate”, REMIC I Regular Interest A-2B, 0.210% in the case of each Distribution Date 

 

through and including the Optional Termination Date and 0.420% in the case of each Distribution Date thereafter.

With respect to the Class A-2C Certificates and, for purposes of the definition of “Marker Rate”, REMIC I Regular Interest A-2C, 0.270% in the case of each Distribution Date through and including the Optional Termination Date and 0.540% in the case of each Distribution Date thereafter.

With respect to the Class A-2D Certificates and, for purposes of the definition of “Marker Rate”, REMIC I Regular Interest A-2D, 0.360% in the case of each Distribution Date through and including the Optional Termination Date and 0.720% in the case of each Distribution Date thereafter.

With respect to the Class M-1 Certificates and, for purposes of the definition of “Marker Rate”, REMIC I Regular Interest M-1, 0.440% in the case of each Distribution Date through and including the Optional Termination Date and 0.660% in the case of each Distribution Date thereafter.

With respect to the Class M-2 Certificates and, for purposes of the definition of “Marker Rate”, REMIC I Regular Interest M-2, 0.460% in the case of each Distribution Date through and including the Optional Termination Date and 0.690% in the case of each Distribution Date thereafter.

With respect to the Class M-3 Certificates and, for purposes of the definition of “Marker Rate”, REMIC I Regular Interest M-3, 0.490% in the case of each Distribution Date through and including the Optional Termination Date and 0.735% in the case of each Distribution Date thereafter.

With respect to the Class M-4 Certificates and, for purposes of the definition of “Marker Rate”, REMIC I Regular Interest M-4, 0.610% in the case of each Distribution Date through and including the Optional Termination Date and 0.915% in the case of each Distribution Date thereafter.

With respect to the Class M-5 Certificates and, for purposes of the definition of “Marker Rate”, REMIC I Regular Interest M-5, 0.690% in the case of each Distribution Date through and including the Optional Termination Date and 1.035% in the case of each Distribution Date thereafter.

With respect to the Class M-6 Certificates and, for purposes of the definition of “Marker Rate”, REMIC I Regular Interest M-6, 0.770% in the case of each Distribution Date through and including the Optional Termination Date and 1.155% in the case of each Distribution Date thereafter.

With respect to the Class B-1 Certificates and, for purposes of the definition of “Marker Rate”, REMIC I Regular Interest B-1, 1.250% in the case of each Distribution Date through and including the Optional Termination Date and 1.750% in the case of each Distribution Date thereafter.

 

 

With respect to the Class B-2 Certificates and, for purposes of the definition of “Marker Rate”, REMIC I Regular Interest B-2, 1.350% in the case of each Distribution Date through and including the Optional Termination Date and 1.850% in the case of each Distribution Date thereafter.

With respect to the Class B-3 Certificates and, for purposes of the definition of “Marker Rate”, REMIC I Regular Interest B-3, 1.750% in the case of each Distribution Date through and including the Optional Termination Date and 2.250% in the case of each Distribution Date thereafter.

With respect to the Class B-4 Certificates and, for purposes of the definition of “Marker Rate”, REMIC I Regular Interest B-4, 2.000% in the case of each Distribution Date through and including the Optional Termination Date and 2.500% in the case of each Distribution Date thereafter.

With respect to the Class B-5 Certificates and, for purposes of the definition of “Marker Rate”, REMIC I Regular Interest B-5, 2.000% in the case of each Distribution Date through and including the Optional Termination Date and 2.500% in the case of each Distribution Date thereafter.

“Certificateholder” or “Holder”: The Person in whose name a Certificate is registered in the Certificate Register, except that a Disqualified Organization or a Non-United States Person shall not be a Holder of a Residual Certificate for any purposes hereof, and solely for the purposes of giving any consent pursuant to this Agreement, any Certificate registered in the name of or beneficially owned by the Depositor, the Seller, the Servicer, the Master Servicer, the Securities Administrator, the Trustee or any Affiliate thereof shall be deemed not to be outstanding and the Voting Rights to which it is entitled shall not be taken into account in determining whether the requisite percentage of Voting Rights necessary to effect any such consent has been obtained, except as otherwise
provided in Section 12.01. The Trustee and the Securities Administrator may conclusively rely upon a certificate of the Depositor, the Seller, the Master Servicer, the Securities Administrator or the Servicer in determining whether a Certificate is held by an Affiliate thereof. All references herein to “Holders” or “Certificateholders” shall reflect the rights of Certificate Owners as they may indirectly exercise such rights through the Depository and participating members thereof, except as otherwise specified herein; provided, however, that the Trustee and the Securities Administrator shall be required to recognize as a “Holder” or “Certificateholder” only the Person in whose name a Certificate is registered in the Certificate Register.

“Certificate Owner”: With respect to a Book-Entry Certificate, the Person who is the beneficial owner of such Certificate as reflected on the books of the Depository or on the books of a Depository Participant or on the books of an indirect participating brokerage firm for which a Depository Participant acts as agent.

“Certificate Principal Balance”: With respect to each Class A Certificate, Mezzanine Certificate, Class B Certificate or Class P Certificate as of any date of determination, the Certificate Principal Balance of such Certificate on the Distribution Date immediately prior to such date of determination plus any Subsequent Recoveries added to the Certificate Principal 

 

Balance of such Certificate pursuant to Section 5.04, minus all distributions allocable to principal made thereon and Realized Losses allocated thereto, if any, on such immediately prior Distribution Date (or, in the case of any date of determination up to and including the first Distribution Date, the initial Certificate Principal Balance of such Certificate, as stated on the face thereof). With respect to each Class CE Certificate as of any date of determination, an amount equal to the Percentage Interest evidenced by such Certificate times the excess, if any, of (A) the then aggregate Uncertificated Balances of the REMIC II Regular Interests over (B) the then aggregate Certificate Principal Balances of the Class A Certificates, the Mezzanine Certificates, the Class B Certificates and the Class P Certificates then outstanding.  The aggregate initial Certificate Principal Balance of each Class of
Regular Certificates is set forth in the Preliminary Statement hereto.

“Certificate Register”: The register maintained pursuant to Section 6.02.

“Class”: Collectively, all of the Certificates bearing the same class designation.

“Class A Certificate”:  Any Class A-1A, Class A-1B1, Class A-1B2, Class A-2A, Class A-2B, Class A-2C or Class A-2D Certificate.

“Class A Principal Distribution Amount”: The Class A Principal Distribution Amount is an amount equal to the sum of: (i) the Class A-1A Principal Distribution Amount, (ii) the Class A-1B Principal Distribution Amount and (iii) the Class A-2 Principal Distribution Amount.

“Class A-1A Allocation Percentage”: With respect to any Distribution Date is the percentage equivalent of a fraction, the numerator of which is (x) the Group IA Principal Remittance Amount for such Distribution Date and the denominator of which is (y) the Principal Remittance Amount for such Distribution Date.

“Class A-1A Certificate”:  Any one of the Class A-1A Certificates executed and authenticated by the Securities Administrator and delivered by the Trustee, substantially in the form annexed hereto as Exhibit A-1 and evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

“Class A-1A Principal Distribution Amount”: With respect to any Distribution Date on or after the Stepdown Date and on which a Trigger Event is not in effect, the excess of (x) the Certificate Principal Balance of the Class A-1A Certificates immediately prior to such Distribution Date over (y) the lesser of (A) the product of (i) 50.20% and (ii) the aggregate Stated Principal Balance of the Group IA Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced and unscheduled collections of principal received during the related Prepayment Period) and (B) the aggregate Stated Principal Balance of the Group IA Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced and unscheduled collections of principal received during the related Prepayment Period) minus the product of (i) 0.50% and (ii) the aggregate principal balance of the Group IA Mortgage Loans as of the Cut-off Date.

 

 

“Class A-1B Allocation Percentage”: With respect to any Distribution Date is the percentage equivalent of a fraction, the numerator of which is (x) the Group IB Principal Remittance Amount for such Distribution Date and the denominator of which is (y) the Principal Remittance Amount for such Distribution Date.

“Class A-1B Principal Distribution Amount”: With respect to any Distribution Date on or after the Stepdown Date and on which a Trigger Event is not in effect, the excess of (x) the sum of the Certificate Principal Balances of the Class A-1B1 Certificates and Class A-1B2 Certificates immediately prior to such Distribution Date over (y) the lesser of (A) the product of (i) 50.20% and (ii) the aggregate Stated Principal Balance of the Group IB Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced and unscheduled collections of principal received during the related Prepayment Period) and (B) the aggregate Stated Principal Balance of the Group IB Mortgage Loans as of the last day of the related Due Period
(after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced and unscheduled collections of principal received during the related Prepayment Period) minus the product of (i) 0.50% and (ii) the aggregate principal balance of the Group IB Mortgage Loans as of the Cut-off Date.

“Class A-1B1 Certificate”:  Any one of the Class A-1B1 Certificates executed and authenticated by the Securities Administrator and delivered by the Trustee, substantially in the form annexed hereto as Exhibit A-1 and evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

“Class A-1B2 Certificate”:  Any one of the Class A-1B2 Certificates executed and authenticated by the Securities Administrator and delivered by the Trustee, substantially in the form annexed hereto as Exhibit A-1 and evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

“Class A-2 Allocation Percentage”: With respect to any Distribution Date is the percentage equivalent of a fraction, the numerator of which is (x) the Group II Principal Remittance Amount for such Distribution Date and the denominator of which is (y) the Principal Remittance Amount for such Distribution Date.

“Class A-2 Certificate”: Any Class A-2A, Class A-2B, Class A-2C or Class A-2D Certificate.

“Class A-2A Certificate”:  Any one of the Class A-2A Certificates executed and authenticated by the Securities Administrator and delivered by the Trustee, substantially in the form annexed hereto as Exhibit A-1 and evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

“Class A-2B Certificate”:  Any one of the Class A-2B Certificates executed and authenticated by the Securities Administrator and delivered by the Trustee, substantially in the form annexed hereto as Exhibit A-1 and evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

 

 

“Class A-2C Certificate”:  Any one of the Class A-2C Certificates executed and authenticated by the Securities Administrator and delivered by the Trustee, substantially in the form annexed hereto as Exhibit A-1 and evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

“Class A-2D Certificate”:  Any one of the Class A-2D Certificates executed and authenticated by the Securities Administrator and delivered by the Trustee, substantially in the form annexed hereto as Exhibit A-1 and evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

“Class A-2 Principal Distribution Amount”: With respect to any Distribution Date on or after the Stepdown Date and on which a Trigger Event is not in effect, the excess of (x) the sum of the Certificate Principal Balances of the Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates immediately prior to such Distribution Date over (y) the lesser of (A) the product of (i) 50.20% and (ii) the aggregate Stated Principal Balance of the Group II Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced and unscheduled collections of principal received during the related Prepayment Period) and (B) the aggregate Stated Principal Balance of the Group II Mortgage Loans as of the last day of the related Due
Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced and unscheduled collections of principal received during the related Prepayment Period) minus the product of (i) 0.50% and (ii) the aggregate principal balance of the Group II Mortgage Loans as of the Cut-off Date.

“Class B Certificate”:  Any Class B-1, Class B-2, Class B-3, Class B-4 or Class B-5 Certificate.

“Class B Interests”:  The Class B-1 Interest, Class B-2 Interest, Class B-3 Interest, Class B-4 Interest and Class B-5 Interest.

“Class B-1 Certificate”:  Any one of the Class B-1 Certificates executed and authenticated by the Securities Administrator and delivered by the Trustee, substantially in the form annexed hereto as Exhibit A-3 and evidencing a Regular Interest in REMIC VII for purposes of the REMIC Provisions.

“Class B-1 Interest”:  An uncertificated interest in the Trust Fund held by the Trustee on behalf of the Holders of the Class B-1 Certificates, evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

“Class B-1 Principal Distribution Amount”: With respect to any Distribution Date on or after the Stepdown Date and on which a Trigger Event is not in effect, the excess of (x) the sum of (i) the aggregate Certificate Principal Balance of the Class A Certificates (after taking into account the payment of the Class A Principal Distribution Amount on such Distribution Date), (ii) the Certificate Principal Balance of the Class M-1 Certificates (after taking into account the payment of the Class M-1 Principal Distribution Amount on such Distribution Date), (iii) the Certificate Principal Balance of the Class M-2 Certificates (after taking into account the payment of the Class M-2 Principal Distribution Amount on such Distribution Date), (iv) the 

 

Certificate Principal Balance of the Class M-3 Certificates (after taking into account the payment of the Class M-3 Principal Distribution Amount on such Distribution Date), (v) the Certificate Principal Balance of the Class M-4 Certificates (after taking into account the payment of the Class M-4 Principal Distribution Amount on such Distribution Date), (vi) the Certificate Principal Balance of the Class M-5 Certificates (after taking into account the payment of the Class M-5 Principal Distribution Amount on such Distribution Date), (vii) the Certificate Principal Balance of the Class M-6 Certificates (after taking into account the payment of the Class M-6 Principal Distribution Amount on such Distribution Date and (viii) the Certificate Principal Balance of the Class B-1 Certificates immediately prior to such Distribution Date over (y) the lesser of (A) the product of (i) 84.30% and (ii) the aggregate
Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced and unscheduled collections of principal received during the related Prepayment Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced and unscheduled collections of principal received during the related Prepayment Period) minus the product of (i) 0.50% and (ii) the aggregate principal balance of the Mortgage Loans as of the Cut-off Date.

“Class B-2 Certificate”:  Any one of the Class B-2 Certificates executed and authenticated by the Securities Administrator and delivered by the Trustee, substantially in the form annexed hereto as Exhibit A-3 and evidencing a Regular Interest in REMIC VIII for purposes of the REMIC Provisions.

“Class B-2 Interest”:  An uncertificated interest in the Trust Fund held by the Trustee on behalf of the Holders of the Class B-2 Certificates, evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

“Class B-2 Principal Distribution Amount”: With respect to any Distribution Date on or after the Stepdown Date and on which a Trigger Event is not in effect, the excess of (x) the sum of (i) the aggregate Certificate Principal Balance of the Class A Certificates (after taking into account the payment of the Class A Principal Distribution Amount on such Distribution Date), (ii) the Certificate Principal Balance of the Class M-1 Certificates (after taking into account the payment of the Class M-1 Principal Distribution Amount on such Distribution Date), (iii) the Certificate Principal Balance of the Class M-2 Certificates (after taking into account the payment of the Class M-2 Principal Distribution Amount on such Distribution Date), (iv) the Certificate Principal Balance of the Class M-3 Certificates (after taking into account the
payment of the Class M-3 Principal Distribution Amount on such Distribution Date), (v) the Certificate Principal Balance of the Class M-4 Certificates (after taking into account the payment of the Class M-4 Principal Distribution Amount on such Distribution Date), (vi) the Certificate Principal Balance of the Class M-5 Certificates (after taking into account the payment of the Class M-5 Principal Distribution Amount on such Distribution Date), (vii) the Certificate Principal Balance of the Class M-6 Certificates (after taking into account the payment of the Class M-6 Principal Distribution Amount on such Distribution Date), (viii) the Certificate Principal Balance of the Class B-1 Certificates (after taking into account the payment of the Class B-1 Principal Distribution Amount on such Distribution Date) and (ix) the Certificate Principal Balance of the Class B-2 Certificates immediately prior to such Distribution Date over 

 

(y) the lesser of (A) the product of (i) 86.70% and (ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced and unscheduled collections of principal received during the related Prepayment Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced and unscheduled collections of principal received during the related Prepayment Period) minus the product of (i) 0.50% and (ii) the aggregate principal balance of the Mortgage Loans as of the Cut-off Date.

“Class B-3 Certificate”:  Any one of the Class B-3 Certificates executed and authenticated by the Securities Administrator and delivered by the Trustee, substantially in the form annexed hereto as Exhibit A-3 and evidencing a Regular Interest in REMIC IX for purposes of the REMIC Provisions.

“Class B-3 Interest”:  An uncertificated interest in the Trust Fund held by the Trustee on behalf of the Holders of the Class B-3 Certificates, evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

“Class B-3 Principal Distribution Amount”: With respect to any Distribution Date on or after the Stepdown Date and on which a Trigger Event is not in effect, the excess of (x) the sum of (i) the aggregate Certificate Principal Balance of the Class A Certificates (after taking into account the payment of the Class A Principal Distribution Amount on such Distribution Date), (ii) the Certificate Principal Balance of the Class M-1 Certificates (after taking into account the payment of the Class M-1 Principal Distribution Amount on such Distribution Date), (iii) the Certificate Principal Balance of the Class M-2 Certificates (after taking into account the payment of the Class M-2 Principal Distribution Amount on such Distribution Date), (iv) the Certificate Principal Balance of the Class M-3 Certificates (after taking into account the
payment of the Class M-3 Principal Distribution Amount on such Distribution Date), (v) the Certificate Principal Balance of the Class M-4 Certificates (after taking into account the payment of the Class M-4 Principal Distribution Amount on such Distribution Date), (vi) the Certificate Principal Balance of the Class M-5 Certificates (after taking into account the payment of the Class M-5 Principal Distribution Amount on such Distribution Date), (vii) the Certificate Principal Balance of the Class M-6 Certificates (after taking into account the payment of the Class M-6 Principal Distribution Amount on such Distribution Date), (viii) the Certificate Principal Balance of the Class B-1 Certificates (after taking into account the payment of the Class B-1 Principal Distribution Amount on such Distribution Date), (ix) the Certificate Principal Balance of the Class B-2 Certificates (after taking into account the payment of the Class B-2 Principal Distribution Amount on such Distribution Date)
and (x) the Certificate Principal Balance of the Class B-3 Certificates immediately prior to such Distribution Date over (y) the lesser of (A) the product of (i) 88.90% and (ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced and unscheduled collections of principal received during the related Prepayment Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced and unscheduled collections of principal received during the 

 

related Prepayment Period) minus the product of (i) 0.50% and (ii) the aggregate principal balance of the Mortgage Loans as of the Cut-off Date.

“Class B-4 Certificate”:  Any one of the Class B-4 Certificates executed and authenticated by the Securities Administrator and delivered by the Trustee, substantially in the form annexed hereto as Exhibit A-3 and evidencing a Regular Interest in REMIC X for purposes of the REMIC Provisions.

“Class B-4 Interest”:  An uncertificated interest in the Trust Fund held by the Trustee on behalf of the Holders of the Class B-4 Certificates, evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

“Class B-4 Principal Distribution Amount”: With respect to any Distribution Date on or after the Stepdown Date and on which a Trigger Event is not in effect, the excess of (x) the sum of (i) the aggregate Certificate Principal Balance of the Class A Certificates (after taking into account the payment of the Class A Principal Distribution Amount on such Distribution Date), (ii) the Certificate Principal Balance of the Class M-1 Certificates (after taking into account the payment of the Class M-1 Principal Distribution Amount on such Distribution Date), (iii) the Certificate Principal Balance of the Class M-2 Certificates (after taking into account the payment of the Class M-2 Principal Distribution Amount on such Distribution Date), (iv) the Certificate Principal Balance of the Class M-3 Certificates (after taking into account the
payment of the Class M-3 Principal Distribution Amount on such Distribution Date), (v) the Certificate Principal Balance of the Class M-4 Certificates (after taking into account the payment of the Class M-4 Principal Distribution Amount on such Distribution Date), (vi) the Certificate Principal Balance of the Class M-5 Certificates (after taking into account the payment of the Class M-5 Principal Distribution Amount on such Distribution Date), (vii) the Certificate Principal Balance of the Class M-6 Certificates (after taking into account the payment of the Class M-6 Principal Distribution Amount on such Distribution Date), (viii) the Certificate Principal Balance of the Class B-1 Certificates (after taking into account the payment of the Class B-1 Principal Distribution Amount on such Distribution Date), (ix) the Certificate Principal Balance of the Class B-2 Certificates (after taking into account the payment of the Class B-2 Principal Distribution Amount on such Distribution Date),
(x) the Certificate Principal Balance of the Class B-3 Certificates (after taking into account the payment of the Class B-3 Principal Distribution Amount on such Distribution Date) and (xi) the Certificate Principal Balance of the Class B-4 Certificates immediately prior to such Distribution Date over (y) the lesser of (A) the product of (i) 90.90% and (ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced and unscheduled collections of principal received during the related Prepayment Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced and unscheduled collections of principal received during the related Prepayment
Period) minus the product of (i) 0.50% and (ii) the aggregate principal balance of the Mortgage Loans as of the Cut-off Date.

“Class B-5 Certificate”:  Any one of the Class B-5 Certificates executed and authenticated by the Securities Administrator and delivered by the Trustee, substantially in the 

 

form annexed hereto as Exhibit A-3 and evidencing a Regular Interest in REMIC XI for purposes of the REMIC Provisions.

“Class B-5 Interest”:  An uncertificated interest in the Trust Fund held by the Trustee on behalf of the Holders of the Class B-5 Certificates, evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

“Class B-5 Principal Distribution Amount”: With respect to any Distribution Date on or after the Stepdown Date and on which a Trigger Event is not in effect, the excess of (x) the sum of (i) the aggregate Certificate Principal Balance of the Class A Certificates (after taking into account the payment of the Class A Principal Distribution Amount on such Distribution Date), (ii) the Certificate Principal Balance of the Class M-1 Certificates (after taking into account the payment of the Class M-1 Principal Distribution Amount on such Distribution Date), (iii) the Certificate Principal Balance of the Class M-2 Certificates (after taking into account the payment of the Class M-2 Principal Distribution Amount on such Distribution Date), (iv) the Certificate Principal Balance of the Class M-3 Certificates (after taking into account the
payment of the Class M-3 Principal Distribution Amount on such Distribution Date), (v) the Certificate Principal Balance of the Class M-4 Certificates (after taking into account the payment of the Class M-4 Principal Distribution Amount on such Distribution Date), (vi) the Certificate Principal Balance of the Class M-5 Certificates (after taking into account the payment of the Class M-5 Principal Distribution Amount on such Distribution Date), (vii) the Certificate Principal Balance of the Class M-6 Certificates (after taking into account the payment of the Class M-6 Principal Distribution Amount on such Distribution Date), (viii) the Certificate Principal Balance of the Class B-1 Certificates (after taking into account the payment of the Class B-1 Principal Distribution Amount on such Distribution Date), (ix) the Certificate Principal Balance of the Class B-2 Certificates (after taking into account the payment of the Class B-2 Principal Distribution Amount on such Distribution Date),
(x) the Certificate Principal Balance of the Class B-3 Certificates (after taking into account the payment of the Class B-3 Principal Distribution Amount on such Distribution Date), (xi) the Certificate Principal Balance of the Class B-4 Certificates (after taking into account the payment of the Class B-4 Principal Distribution Amount on such Distribution Date) and (xii) the Certificate Principal Balance of the Class B-5 Certificates immediately prior to such Distribution Date over (y) the lesser of (A) the product of (i) 92.90% and (ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced and unscheduled collections of principal received during the related Prepayment Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect
to scheduled payments of principal due during the related Due Period, to the extent received or advanced and unscheduled collections of principal received during the related Prepayment Period) minus the product of (i) 0.50% and (ii) the aggregate principal balance of the Mortgage Loans as of the Cut-off Date.

“Class CE Certificate”: Any one of the Class CE Certificates executed and  authenticated by the Securities Administrator and delivered by the Trustee, substantially in the form annexed hereto as Exhibit A-4 and evidencing a Regular Interest in REMIC IV for purposes of the REMIC Provisions.

 

 

“Class CE Interest”:  An uncertificated interest in the Trust Fund held by the Trustee on behalf of the Holders of the Class CE Certificates, evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

“Class IO Distribution Amount”:  As defined in Section 5.07(e) hereof.  For purposes of clarity, the Class IO Distribution Amount for any Distribution Date shall equal the amount payable to the Supplemental Interest Trust on such Distribution Date in excess of the amount payable on the Class IO Interest on such Distribution Date, all as further provided in Section 5.07(e) hereof.

“Class IO Interest”:  An uncertificated interest in the Trust Fund held by the Trustee, evidencing a REMIC Regular Interest in REMIC VI for purposes of the REMIC Provisions.

“Class M Certificates”: The Class M-1, Class M-2, Class M-3, Class M-4, Class M-5 and Class M-6 Certificates.

“Class M-1 Certificate”: Any one of the Class M-1 Certificates executed and authenticated by the Securities Administrator and delivered by the Trustee, substantially in the form annexed hereto as Exhibit A-2 and evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

“Class M-1 Principal Distribution Amount”: With respect to any Distribution Date on or after the Stepdown Date and on which a Trigger Event is not in effect, the excess of (x) the sum of (i) the aggregate Certificate Principal Balance of the Class A Certificates (after taking into account the payment of the Class A Principal Distribution Amount on such Distribution Date) and (ii) the Certificate Principal Balance of the Class M-1 Certificates immediately prior to such Distribution Date over (y) the lesser of (A) the product of (i) 58.10% and (ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced and unscheduled collections of principal received during the
related Prepayment Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced and unscheduled collections of principal received during the related Prepayment Period) minus the product of (i) 0.50% and (ii) the aggregate principal balance of the Mortgage Loans as of the Cut-off Date.

“Class M-2 Certificate”: Any one of the Class M-2 Certificates executed and authenticated by the Securities Administrator and delivered by the Trustee, substantially in the form annexed hereto as Exhibit A-2 and evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

“Class M-2 Principal Distribution Amount”: With respect to any Distribution Date on or after the Stepdown Date and on which a Trigger Event is not in effect, the excess of (x) the sum of (i) the aggregate Certificate Principal Balance of the Class A Certificates (after taking into account the payment of the Class A Principal Distribution Amount on such 

 

Distribution Date), (ii) the Certificate Principal Balance of the Class M-1 Certificates (after taking into account the payment of the Class M-1 Principal Distribution Amount on such Distribution Date) and (iii) the Certificate Principal Balance of the Class M-2 Certificates immediately prior to such Distribution Date over (y) the lesser of (A) the product of (i) 65.40% and (ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced and unscheduled collections of principal received during the related Prepayment Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the
extent received or advanced and unscheduled collections of principal received during the related Prepayment Period) minus the product of (i) 0.50% and (ii) the aggregate principal balance of the Mortgage Loans as of the Cut-off Date.

“Class M-3 Certificate”: Any one of the Class M-3 Certificates executed and authenticated by the Securities Administrator and delivered by the Trustee, substantially in the form annexed hereto as Exhibit A-2 and evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

“Class M-3 Principal Distribution Amount”: With respect to any Distribution Date on or after the Stepdown Date and on which a Trigger Event is not in effect, the excess of (x) the sum of (i) the aggregate Certificate Principal Balance of the Class A Certificates (after taking into account the payment of the Class A Principal Distribution Amount on such Distribution Date), (ii) the Certificate Principal Balance of the Class M-1 Certificates (after taking into account the payment of the Class M-1 Principal Distribution Amount on such Distribution Date), (iii) the Certificate Principal Balance of the Class M-2 Certificates (after taking into account the payment of the Class M-2 Principal Distribution Amount on such Distribution Date) and (iv) the Certificate Principal Balance of the Class M-3 Certificates immediately prior to such
Distribution Date over (y) the lesser of (A) the product of (i) 70.50% and (ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced and unscheduled collections of principal received during the related Prepayment Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced and unscheduled collections of principal received during the related Prepayment Period) minus the product of (i) 0.50% and (ii) the aggregate principal balance of the Mortgage Loans as of the Cut-off Date.

“Class M-4 Certificate”: Any one of the Class M-4 Certificates executed and authenticated by the Securities Administrator and delivered by the Trustee, substantially in the form annexed hereto as Exhibit A-2 and evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

“Class M-4 Principal Distribution Amount”: With respect to any Distribution Date on or after the Stepdown Date and on which a Trigger Event is not in effect, the excess of (x) the sum of (i) the aggregate Certificate Principal Balance of the Class A Certificates (after 

 

taking into account the payment of the Class A Principal Distribution Amount on such Distribution Date), (ii) the Certificate Principal Balance of the Class M-1 Certificates (after taking into account the payment of the Class M-1 Principal Distribution Amount on such Distribution Date), (iii) the Certificate Principal Balance of the Class M-2 Certificates (after taking into account the payment of the Class M-2 Principal Distribution Amount on such Distribution Date), (iv) the Certificate Principal Balance of the Class M-3 Certificates (after taking into account the payment of the Class M-3 Principal Distribution Amount on such Distribution Date) and (v) the Certificate Principal Balance of the Class M-4 Certificates immediately prior to such Distribution Date over (y) the lesser of (A) the product of (i) 74.30% and (ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the
related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced and unscheduled collections of principal received during the related Prepayment Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced and unscheduled collections of principal received during the related Prepayment Period) minus the product of (i) 0.50% and (ii) the aggregate principal balance of the Mortgage Loans as of the Cut-off Date.

“Class M-5 Certificate”: Any one of the Class M-5 Certificates executed and authenticated by the Securities Administrator and delivered by the Trustee, substantially in the form annexed hereto as Exhibit A-2 and evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

“Class M-5 Principal Distribution Amount”: With respect to any Distribution Date on or after the Stepdown Date and on which a Trigger Event is not in effect, the excess of (x) the sum of (i) the aggregate Certificate Principal Balance of the Class A Certificates (after taking into account the payment of the Class A Principal Distribution Amount on such Distribution Date), (ii) the Certificate Principal Balance of the Class M-1 Certificates (after taking into account the payment of the Class M-1 Principal Distribution Amount on such Distribution Date), (iii) the Certificate Principal Balance of the Class M-2 Certificates (after taking into account the payment of the Class M-2 Principal Distribution Amount on such Distribution Date), (iv) the Certificate Principal Balance of the Class M-3 Certificates (after taking into account the
payment of the Class M-3 Principal Distribution Amount on such Distribution Date), (v) the Certificate Principal Balance of the Class M-4 Certificates (after taking into account the payment of the Class M-4 Principal Distribution Amount on such Distribution Date) and (vi) the Certificate Principal Balance of the Class M-5 Certificates immediately prior to such Distribution Date over (y) the lesser of (A) the product of (i) 77.90% and (ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced and unscheduled collections of principal received during the related Prepayment Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or
advanced and unscheduled collections of principal received during the related Prepayment Period) minus the product of (i) 0.50% and (ii) the aggregate principal balance of the Mortgage Loans as of the Cut-off Date.

 

 

“Class M-6 Certificate”: Any one of the Class M-6 Certificates executed and authenticated by the Securities Administrator and delivered by the Trustee, substantially in the form annexed hereto as Exhibit A-2 and evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

“Class M-6 Principal Distribution Amount”: With respect to any Distribution Date on or after the Stepdown Date and on which a Trigger Event is not in effect, the excess of (x) the sum of (i) the aggregate Certificate Principal Balance of the Class A Certificates (after taking into account the payment of the Class A Principal Distribution Amount on such Distribution Date), (ii) the Certificate Principal Balance of the Class M-1 Certificates (after taking into account the payment of the Class M-1 Principal Distribution Amount on such Distribution Date), (iii) the Certificate Principal Balance of the Class M-2 Certificates (after taking into account the payment of the Class M-2 Principal Distribution Amount on such Distribution Date), (iv) the Certificate Principal Balance of the Class M-3 Certificates (after taking into account the
payment of the Class M-3 Principal Distribution Amount on such Distribution Date), (v) the Certificate Principal Balance of the Class M-4 Certificates (after taking into account the payment of the Class M-4 Principal Distribution Amount on such Distribution Date), (vi) the Certificate Principal Balance of the Class M-5 Certificates (after taking into account the payment of the Class M-5 Principal Distribution Amount on such Distribution Date) and (vii) the Certificate Principal Balance of the Class M-6 Certificates immediately prior to such Distribution Date over (y) the lesser of (A) the product of (i) 81.00% and (ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced and unscheduled collections of principal received during the related Prepayment Period) and (B) the aggregate Stated Principal Balance of
the Mortgage Loans as of the last day of the related Due Period (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced and unscheduled collections of principal received during the related Prepayment Period) minus the product of (i) 0.50% and (ii) the aggregate principal balance of the Mortgage Loans as of the Cut-off Date.

“Class P Certificate”: Any one of the Class P Certificates executed and authenticated by the Securities Administrator and delivered by the Trustee, substantially in the form annexed hereto as Exhibit A-5 and evidencing a Regular Interest in REMIC V for purposes of the REMIC Provisions.

“Class P Interest”:  An uncertificated interest in the Trust Fund held by the Trustee on behalf of the Holders of the Class P Certificates, evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

“Class R Certificates”: Any one of the Class R Certificates executed and authenticated by the Securities Administrator and delivered by the Trustee, substantially in the form annexed hereto as Exhibit A-6, and evidencing the Class R-I Interest, the Class R-II Interest and the Class R-III Interest.

“Class R-X Certificates”: Any one of the Class R-X Certificates executed and authenticated by the Securities Administrator and delivered by the Trustee, substantially in the 

 

form annexed hereto as Exhibit A-6, and evidencing the Class R-IV Interest, the Class R-V Interest, the Class R-VI Interest, the Class R-VII Interest, the Class R-VIII Interest, the Class R-IX Interest, the Class R-X Interest and the Class R-XI Interest.

“Class R-I Interest”: The uncertificated residual interest in REMIC I.

“Class R-II Interest”: The uncertificated residual interest in REMIC II.

“Class R-III Interest”: The uncertificated residual interest in REMIC III.

“Class R-IV Interest”: The uncertificated residual interest in REMIC IV.

“Class R-V Interest”: The uncertificated residual interest in REMIC V.

“Class R-VI Interest”: The uncertificated residual interest in REMIC VI.

“Class R-VII Interest”: The uncertificated residual interest in REMIC VII.

“Class R-VIII Interest”: The uncertificated residual interest in REMIC VIII.

“Class R-IX Interest”: The uncertificated residual interest in REMIC IX.

“Class R-X Interest”: The uncertificated residual interest in REMIC X.

“Class R-XI Interest”: The uncertificated residual interest in REMIC XI.

“Closing Date”:  October 28, 2005.

“Code”: The Internal Revenue Code of 1986 as amended from time to time.

“Collection Account”: The account or accounts created and maintained, or caused to be created and maintained, by the Servicer pursuant to Section 3.08(a) of this Agreement, which shall be entitled “Litton Loan Servicing LP, as Servicer for HSBC Bank USA, National Association as Trustee, in trust for the registered Holders of ACE Securities Corp., Home Equity Loan Trust, Series 2005-AG1, Asset Backed Pass-Through Certificates”.  The Collection Account must be an Eligible Account.

“Commission”: The Securities and Exchange Commission.

“Corporate Trust Office”: The principal corporate trust office of the Trustee or the Securities Administrator, as the case may be, at which, at any particular time, its corporate trust business in connection with this Agreement shall be administered, which office at the date of the execution of this instrument is located at (i) with respect to the Trustee, HSBC Bank USA, National Association, 452 Fifth Avenue, New York, New York 10018, Attention: ACE Securities Corp., 2005-AG1, or at such other address as the Trustee may designate from time to time by notice to the Certificateholders, the Depositor, the Master Servicer, the Securities Administrator and the Servicer, or (ii) with respect to the Securities Administrator, (A) for purposes of Certificate transfers and surrender, Wells Fargo Bank, National Association, Sixth Street and
Marquette Avenue, Minneapolis, Minnesota 55479, Attention: Corporate Trust (ACE 

 

2005-AG1), and (B) for all other purposes, Wells Fargo Bank, National Association, P.O. Box 98, Columbia, Maryland 21046, Attention: Corporate Trust (ACE 2005-AG1) (or for overnight deliveries, at 9062 Old Annapolis Road, Columbia, Maryland 21045, Attention: Corporate Trust (ACE 2005-AG1)), or at such other address as the Securities Administrator may designate from time to time by notice to the Certificateholders, the Depositor, the Master Servicer, the Servicer and the Trustee.

“Corresponding Certificate”: With respect to each REMIC II Regular Interest, as follows:

	
            
REMIC II Regular Interest
 
 	
            
Class
 
 
	
            REMIC II Regular Interest A-1A
 	
            A-1A
 
	
            REMIC II Regular Interest A-1B1
 	
            A-1B1
 
	
            REMIC II Regular Interest A-1B2
 	
            A-1B2
 
	
            REMIC II Regular Interest A-2A
 	
            A-2A
 
	
            REMIC II Regular Interest A-2B
 	
            A-2B
 
	
            REMIC II Regular Interest A-2C
 	
            A-2C
 
	
            REMIC II Regular Interest A-2D
 	
            A-2D
 
	
            REMIC II Regular Interest M-1
 	
            M-1
 
	
            REMIC II Regular Interest M-2
 	
            M-2
 
	
            REMIC II Regular Interest M-3
 	
            M-3
 
	
            REMIC II Regular Interest M-4
 	
            M-4
 
	
            REMIC II Regular Interest M-5
 	
            M-5
 
	
            REMIC II Regular Interest M-6
 	
            M-6
 
	
            REMIC II Regular Interest B-1, Class B-1 Interest
 	
            B-1
 
	
            REMIC II Regular Interest B-2, Class B-2 Interest
 	
            B-2
 
	
            REMIC II Regular Interest B-3, Class B-3 Interest
 	
            B-3
 
	
            REMIC II Regular Interest B-4, Class B-4 Interest
 	
            B-4
 
	
            REMIC II Regular Interest B-5, Class B-5 Interest
 	
            B-5
 
	
            REMIC II Regular Interest P, Class P Interest
 	
            P
 

 

“Credit Enhancement Percentage”: For any Distribution Date, the percentage equivalent of a fraction, the numerator of which is the sum of the aggregate Certificate Principal Balances of the Mezzanine Certificates, the Class B Certificates and the Class CE Certificates, and the denominator of which is the aggregate Stated Principal Balance of the Mortgage Loans, calculated after taking into account distributions of principal on the Mortgage Loans and distribution of the Principal Distribution Amount to the Certificates then entitled to distributions of principal on such Distribution Date.

“Custodial Agreement”: The Custodial Agreement, dated as of October 1, 2005, among the Trustee, the Custodian and the Servicer as may be amended from time to time, or any other custodial agreement entered into after the date hereof with respect to any Mortgage Loan subject to this Agreement.

“Custodian”: DBNT or any other custodian appointed under any custodial agreement entered into after the date of this Agreement.

“Cut-off Date”: With respect to each Mortgage Loan, October 1, 2005. With respect to all Qualified Substitute Mortgage Loans, their respective dates of substitution. 

 

References herein to the “Cut-off Date,” when used with respect to more than one Mortgage Loan, shall be to the respective Cut-off Dates for such Mortgage Loans.

“DBNT”: Deutsche Bank National Trust Company, a national banking association, or its successor in interest.

“Debt Service Reduction”: With respect to any Mortgage Loan, a reduction in the scheduled Monthly Payment for such Mortgage Loan by a court of competent jurisdiction in a proceeding under the Bankruptcy Code, except such a reduction resulting from a Deficient Valuation.

“Deficient Valuation”: With respect to any Mortgage Loan, a valuation of the related Mortgaged Property by a court of competent jurisdiction in an amount less than the then outstanding principal balance of the Mortgage Loan, which valuation results from a proceeding initiated under the Bankruptcy Code.

“Definitive Certificates”: As defined in Section 6.01(b).

“Deleted Mortgage Loan”: A Mortgage Loan replaced or to be replaced by a Qualified Substitute Mortgage Loan.

“Delinquency Percentage”: As of the last day of the related Due Period, the percentage equivalent of a fraction, the numerator of which is the aggregate Stated Principal Balance of all Mortgage Loans that, as of the last day of the previous calendar month, are sixty (60) or more days delinquent, are in foreclosure, have been converted to REO Properties or have been discharged by reason of bankruptcy, and the denominator of which is the aggregate Stated Principal Balance of the Mortgage Loans and REO Properties as of the last day of the previous calendar month.

“Depositor”: ACE Securities Corp., a Delaware corporation, or its successor in interest.

“Depository”: The Depository Trust Company, or any successor Depository hereafter named. The nominee of the initial Depository, for purposes of registering those Certificates that are to be Book-Entry Certificates, is Cede & Co. The Depository shall at all times be a “clearing corporation” as defined in Section 8-102(3) of the Uniform Commercial Code of the State of New York and a “clearing agency” registered pursuant to the provisions of Section 17A of the Exchange Act.

“Depository Institution”: Any depository institution or trust company, including the Trustee, that (a) is incorporated under the laws of the United States of America or any State thereof, (b) is subject to supervision and examination by federal or state banking authorities and (c) has outstanding unsecured commercial paper or other short-term unsecured debt obligations (or, in the case of a depository institution that is the principal subsidiary of a holding company, such holding company has unsecured commercial paper or other short-term unsecured debt obligations) that are rated at least A-1+ by S&P and P-1 by Moody’s (or, if such Rating Agencies are no longer rating the Offered Certificates, comparable ratings by any other nationally recognized statistical rating agency then rating the Offered Certificates).

 

 

“Depository Participant”: A broker, dealer, bank or other financial institution or other Person for whom from time to time a Depository effects book-entry transfers and pledges of securities deposited with the Depository.

“Determination Date”: With respect to each Distribution Date,  the 10th day of the calendar month in which such Distribution Date occurs, or if such 10th day is not a Business Day, the Business Day immediately preceding such 10th day.  The Determination Date for purposes of Article X hereof shall mean the 15th day of the month or, if such 15th day is not a Business Day, the first Business Day following such 15th day.

“Directly Operate”: With respect to any REO Property, the furnishing or rendering of services to the tenants thereof, the management or operation of such REO Property, the holding of such REO Property primarily for sale to customers, the performance of any construction work thereon or any use of such REO Property in a trade or business conducted by REMIC I other than through an Independent Contractor; provided, however, that the Servicer, on behalf of the Trustee, shall not be considered to Directly Operate an REO Property solely because the Servicer establishes rental terms, chooses tenants, enters into or renews leases, deals with taxes and insurance, or makes decisions as to repairs or capital expenditures with respect to such REO Property.

“Disqualified Organization”: Any of the following: (i) the United States, any State or political subdivision thereof, any possession of the United States, or any agency or instrumentality of any of the foregoing (other than an instrumentality which is a corporation if all of its activities are subject to tax and, except for Freddie Mac, a majority of its board of directors is not selected by such governmental unit), (ii) any foreign government, any international organization, or any agency or instrumentality of any of the foregoing, (iii) any organization (other than certain farmers’ cooperatives described in Section 521 of the Code) which is exempt from the tax imposed by Chapter 1 of the Code (including the tax imposed by Section 511 of the Code on unrelated business taxable income), (iv) rural electric and telephone
cooperatives described in Section 1381(a)(2)(C) of the Code, (v) an “electing large partnership” and (vi) any other Person so designated by the Trustee based upon an Opinion of Counsel that the holding of an Ownership Interest in a Residual Certificate by such Person may cause any Trust REMIC or any Person having an Ownership Interest in any Class of Certificates (other than such Person) to incur a liability for any federal tax imposed under the Code that would not otherwise be imposed but for the Transfer of an Ownership Interest in a Residual Certificate to such Person. The terms “United States,” “State” and “international organization” shall have the meanings set forth in Section 7701 of the Code or successor provisions.

“Distribution Account”: The trust account or accounts created and maintained by the Securities Administrator pursuant to Section 3.08(b) in the name of the Securities Administrator for the benefit of the Certificateholders and designated “Wells Fargo Bank, National Association, in trust for registered holders of ACE Securities Corp. Home Equity Loan Trust, Series 2005-AG1”. Funds in the Distribution Account shall be held in trust for the Certificateholders for the uses and purposes set forth in this Agreement. The Distribution Account must be an Eligible Account.

 

 

“Distribution Date”: The 25th day of any month, or if such 25th day is not a Business Day, the Business Day immediately following such 25th day, commencing in November 2005.

“Due Date”: With respect to each Distribution Date, the day of the month on which the Monthly Payment is due on a Mortgage Loan during the related Due Period, exclusive of any days of grace.

“Due Period”: With respect to any Distribution Date, the period commencing on the second day of the month immediately preceding the month in which such Distribution Date occurs and ending on the first day of the month in which such Distribution Date occurs.  

“Eligible Account”: Any of (i) an account or accounts maintained with a Depository Institution, (ii) an account or accounts the deposits in which are fully insured by the FDIC or (iii) a trust account or accounts maintained with a federal depository institution or state chartered depository institution acting in its fiduciary capacity. Eligible Accounts may bear interest.

“ERISA”: The Employee Retirement Income Security Act of 1974, as amended from time to time.

“Estate in Real Property”: A fee simple estate in a parcel of land.

“Excess Liquidation Proceeds”: To the extent that such amount is not required by law to be paid to the related mortgagor, the amount, if any, by which Liquidation Proceeds with respect to a liquidated Mortgage Loan exceed the sum of (i) the outstanding principal balance of such Mortgage Loan and accrued but unpaid interest at the related Net Mortgage Rate through the last day of the month in which the related Liquidation Event occurs, plus (ii) related liquidation expenses or other amounts to which the Servicer is entitled to be reimbursed from Liquidation Proceeds with respect to such liquidated Mortgage Loan pursuant to Section 3.09 of this Agreement.

“Exchange Act”:  The Securities Exchange Act of 1934, as amended.

“Extraordinary Trust Fund Expense”: Any amounts payable or reimbursable to the Trustee, the Master Servicer, the Securities Administrator, the Custodian or any director, officer, employee or agent of any such Person from the Trust Fund pursuant to the terms of this Agreement and any amounts payable from the Distribution Account in respect of taxes pursuant to Section 11.01(g)(v).

“Extra Principal Distribution Amount”: With respect to any Distribution Date, the lesser of (i) the Net Monthly Excess Cashflow for such Distribution Date and (ii) the Overcollateralization Increase Amount for such Distribution Date.

“Fannie Mae”: Fannie Mae, formerly known as the Federal National Mortgage Association, or any successor thereto.

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

 

 

“Final Maturity Date”:  The Distribution Date occurring in August 2035.

“Final Recovery Determination”: With respect to any defaulted Mortgage Loan or any REO Property (other than a Mortgage Loan or REO Property purchased by the Originator, the Seller or the Master Servicer pursuant to or as contemplated by Section 2.03, 3.13(c) or Section 10.01), a determination made by the Servicer that all Insurance Proceeds, Liquidation Proceeds and other payments or recoveries which the Servicer, in its reasonable good faith judgment, expects to be finally recoverable in respect thereof have been so recovered, which determination shall be evidenced by a certificate of a Servicing Officer delivered to the Master Servicer and maintained in its records.

“Freddie Mac”: Freddie Mac, formerly known as the Federal Home Loan Mortgage Corporation, or any successor thereto.

“Gross Margin”: With respect to each Adjustable Rate Mortgage Loan, the fixed percentage set forth in the related Mortgage Note that is added to the Index on each Adjustment Date in accordance with the terms of the related Mortgage Note used to determine the Mortgage Rate for such Adjustable Rate Mortgage Loan.

“Group IA Allocation Percentage”: The aggregate principal balance of the Group IA Mortgage Loans divided by the sum of the aggregate principal balance of the Group IA Mortgage Loans, Group IB Mortgage Loans and Group II Mortgage Loans.

“Group IA Interest Remittance Amount”: With respect to any Distribution Date is that portion of the Available Distribution Amount for such Distribution Date that represents interest received or advanced on the Group IA Mortgage Loans (net of the Administration Fees and any Prepayment Charges and after taking into account amounts payable or reimbursable to the Trustee, the Custodian, the Securities Administrator, the Master Servicer or the Servicer pursuant to this Agreement or the Custodial Agreement).

“Group IA Mortgage Loans”: Those Mortgage Loans identified on the Mortgage Loan Schedule as Group IA Mortgage Loans.

“Group IA Principal Distribution Amount”: With respect to any Distribution Date will be the sum of (i) the principal portion of all Monthly Payments on the Group IA Mortgage Loans due during the related Due Period, whether or not received on or prior to the related Determination Date; (ii) the principal portion of all proceeds received in respect of the repurchase of a Group IA Mortgage Loan or, in the case of a substitution, certain amounts representing a principal adjustment, during the related Prepayment Period pursuant to or as contemplated by Section 2.03, Section 3.13(c) and Section 10.01 of this Agreement; (iii) the principal portion of all other unscheduled collections, including Insurance Proceeds, Liquidation Proceeds and all Principal Prepayments in full and in part, received during the related Prepayment
Period, to the extent applied as recoveries of principal on the Group IA Mortgage Loans, net in each case of payments or reimbursements to the Trustee, the Custodian, the Master Servicer, the Securities Administrator or the Servicer and (iv) the Class A-1A Allocation Percentage of the amount of any Overcollateralization Increase Amount for such Distribution 

 

Date minus (v) the Class A-1A Allocation Percentage of the amount of any Overcollateralization Reduction Amount for such Distribution Date.

“Group IA Principal Remittance Amount”: With respect to any Distribution Date will be the sum of the amounts described in clauses (i) through (iii) of the definition of Group IA Principal Distribution Amount.

“Group IB Allocation Percentage”: The aggregate principal balance of the Group IB Mortgage Loans divided by the sum of the aggregate principal balance of the Group IA Mortgage Loans, Group IB Mortgage Loans and Group II Mortgage Loans.

“Group IB Interest Remittance Amount”: With respect to any Distribution Date is that portion of the Available Distribution Amount for such Distribution Date that represents interest received or advanced on the Group IB Mortgage Loans (net of the Administration Fees and any Prepayment Charges and after taking into account amounts payable or reimbursable to the Trustee, the Custodian, the Securities Administrator, the Master Servicer or the Servicer pursuant to this Agreement or the Custodial Agreement).

“Group IB Mortgage Loans”: Those Mortgage Loans identified on the Mortgage Loan Schedule as Group IB Mortgage Loans.

“Group IB Principal Distribution Amount”: With respect to any Distribution Date will be the sum of (i) the principal portion of all Monthly Payments on the Group IB Mortgage Loans due during the related Due Period, whether or not received on or prior to the related Determination Date; (ii) the principal portion of all proceeds received in respect of the repurchase of a Group IB Mortgage Loan or, in the case of a substitution, certain amounts representing a principal adjustment, during the related Prepayment Period pursuant to or as contemplated by Section 2.03, Section 3.13(c) and Section 10.01 of this Agreement; (iii) the principal portion of all other unscheduled collections, including Insurance Proceeds, Liquidation Proceeds and all Principal Prepayments in full and in part, received during the related Prepayment
Period, to the extent applied as recoveries of principal on the Group IB Mortgage Loans, net in each case of payments or reimbursements to the Trustee, the Custodian, the Master Servicer, the Securities Administrator or the Servicer and (iv) the Class A-1B Allocation Percentage of the amount of any Overcollateralization Increase Amount for such Distribution Date minus (v) the Class A-1B Allocation Percentage of the amount of any Overcollateralization Reduction Amount for such Distribution Date.

“Group IB Principal Remittance Amount”: With respect to any Distribution Date will be the sum of the amounts described in clauses (i) through (iii) of the definition of Group IB Principal Distribution Amount.

“Group II Allocation Percentage”: The aggregate principal balance of the Group II Mortgage Loans divided by the sum of the aggregate principal balance of the Group IA Mortgage Loans, Group IB Mortgage Loans and Group II Mortgage Loans.

“Group II Interest Remittance Amount”: With respect to any Distribution Date is that portion of the Available Distribution Amount for such Distribution Date that represents interest received or advanced on the Group II Mortgage Loans (net of the Administration Fees 

 

and any Prepayment Charges and after taking into account amounts payable or reimbursable to the Trustee, the Custodian, the Securities Administrator, the Master Servicer or the Servicer pursuant to this Agreement or the Custodial Agreement).

“Group II Mortgage Loans”: Those Mortgage Loans identified on the Mortgage Loan Schedule as Group II Mortgage Loans.

“Group II Principal Distribution Amount”: With respect to any Distribution Date will be the sum of (i) the principal portion of all Monthly Payments on the Group II Mortgage Loans due during the related Due Period, whether or not received on or prior to the related Determination Date; (ii) the principal portion of all proceeds received in respect of the repurchase of a Group II Mortgage Loan or, in the case of a substitution, certain amounts representing a principal adjustment, during the related Prepayment Period pursuant to or as contemplated by Section 2.03, Section 3.13(c) and Section 10.01 of this Agreement; (iii) the principal portion of all other unscheduled collections, including Insurance Proceeds, Liquidation Proceeds and all Principal Prepayments in full and in part, received during the related Prepayment
Period, to the extent applied as recoveries of principal on the Group II Mortgage Loans, net in each case of payments or reimbursements to the Trustee, the Custodian, the Master Servicer, the Securities Administrator or the Servicer and (iv) the Class A-2 Allocation Percentage of the amount of any Overcollateralization Increase Amount for such Distribution Date minus (v) the Class A-2 Allocation Percentage of the amount of any Overcollateralization Reduction Amount for such Distribution Date.

“Group II Principal Remittance Amount”: With respect to any Distribution Date will be the sum of the amounts described in clauses (i) through (iii) of the definition of Group II Principal Distribution Amount.

“Independent”: When used with respect to any specified Person, any such Person who (a) is in fact independent of the Depositor, the Master Servicer, the Securities Administrator, the Servicer, the Seller, the Originator and their respective Affiliates, (b) does not have any direct financial interest in or any material indirect financial interest in the Depositor, the Master Servicer, the Securities Administrator, the Servicer, the Seller, the Originator or any Affiliate thereof, and (c) is not connected with the Depositor, the Master Servicer, the Securities Administrator, the Servicer, the Seller, the Originator or any Affiliate thereof as an officer, employee, promoter, underwriter, trustee, partner, director or Person performing similar functions; provided, however, that a Person shall not fail to be Independent of the Depositor,
the Master Servicer, the Securities Administrator, the Servicer, the Seller, the Originator or any Affiliate thereof merely because such Person is the beneficial owner of 1% or less of any Class of securities issued by the Depositor, the Master Servicer, the Securities Administrator, the Servicer, the Seller, the Originator or any Affiliate thereof, as the case may be.

“Independent Contractor”:  Either (i) any Person (other than the Servicer) that would be an “independent contractor” with respect to REMIC I within the meaning of Section 856(d)(3) of the Code if REMIC I were a real estate investment trust (except that the ownership tests set forth in that section shall be considered to be met by any Person that owns, directly or indirectly, 35% or more of any Class of Certificates), so long as REMIC I does not receive or derive any income from such Person and provided that the relationship between such 

 

Person and REMIC I is at arm’s length, all within the meaning of Treasury Regulation Section 1.856-4(b)(5), or (ii) any other Person (including the Servicer) if the Trustee has received an Opinion of Counsel to the effect that the taking of any action in respect of any REO Property by such Person, subject to any conditions therein specified, that is otherwise herein contemplated to be taken by an Independent Contractor will not cause such REO Property to cease to qualify as “foreclosure property” within the meaning of Section 860G(a)(8) of the Code (determined without regard to the exception applicable for purposes of Section 860D(a) of the Code), or cause any income realized in respect of such REO Property to fail to qualify as Rents from Real Property.

“Index”: As of any Adjustment Date, the index applicable to the determination of the Mortgage Rate on each Adjustable Rate Mortgage Loan will generally be the average of the interbank offered rates for six-month United States dollar deposits in the London market as published in The Wall Street Journal and as most recently available either (a) as of the first Business Day 45 days prior to such Adjustment Date or (b) as of the first Business Day of the month preceding the month of such Adjustment Date, as specified in the related Mortgage Note.

“Institutional Accredited Investor”: As defined in Section 6.01(c).

“Insurance Proceeds”: Proceeds of any title policy, hazard policy or other insurance policy, covering a Mortgage Loan or the related Mortgaged Property, to the extent such proceeds are not to be applied to the restoration of the related Mortgaged Property or released to the Mortgagor in accordance with Accepted Servicing Practices, subject to the terms and conditions of the related Mortgage Note and Mortgage.

“Interest Accrual Period”: With respect to any Distribution Date and the Class A Certificates, the Mezzanine Certificates and the Class B Certificates, the period commencing on the Distribution Date of the month immediately preceding the month in which such Distribution Date occurs (or, in the case of the first Distribution Date, commencing on the Closing Date) and ending on the day preceding such Distribution Date. With respect to any Distribution Date and the Class CE Certificates and the REMIC I Regular Interests, the one-month period ending on the last day of the calendar month immediately preceding the month in which such Distribution Date occurs.

“Interest Carry Forward Amount”: With respect to any Distribution Date and any Class A Certificate, Mezzanine Certificate or Class B Certificate, the sum of (i) the amount, if any, by which (a) the Interest Distribution Amount for such Class as of the immediately preceding Distribution Date exceeded (b) the actual amount distributed on such Class in respect of interest on such immediately preceding Distribution Date and (ii) the amount of any Interest Carry Forward Amount for such Class remaining unpaid from the previous Distribution Date, plus accrued interest on such sum calculated at the related Pass-Through Rate for the most recently ended Interest Accrual Period.

“Interest Determination Date”: With respect to the Class A Certificates, the Mezzanine Certificates, the Class B Certificates, the Class B Interests, REMIC I Regular Interests and REMIC II Regular Interests (other than REMIC I Regular Interest P and REMIC II 

 

Regular Interest P) and any Interest Accrual Period therefor, the second London Business Day preceding the commencement of such Interest Accrual Period.

“Interest Distribution Amount”: With respect to any Distribution Date and any Class A Certificates, any Mezzanine Certificates, any Class B Certificates and any Class CE Certificates, the aggregate Accrued Certificate Interest on the Certificates of such Class for such Distribution Date.

“Interest Remittance Amount”: With respect to any Distribution Date, the sum of (i) the Group IA Interest Remittance Amount, (ii) the Group IB Interest Remittance Amount and (iii) the Group II Interest Remittance Amount.

“Last Scheduled Distribution Date”: The Distribution Date occurring in August 2035, which is the Distribution Date immediately following the maturity date for the Mortgage Loan with the latest maturity date.

“Late Collections”: With respect to any Mortgage Loan and any Due Period, all amounts received subsequent to the Determination Date immediately following such Due Period with respect to such Mortgage Loan, whether as late payments of Monthly Payments or as Insurance Proceeds, Liquidation Proceeds or otherwise, which represent late payments or collections of principal and/or interest due (without regard to any acceleration of payments under the related Mortgage and Mortgage Note) but delinquent for such Due Period and not previously recovered.

“Liquidation Event”: With respect to any Mortgage Loan, any of the following events: (i) such Mortgage Loan is paid in full; (ii) a Final Recovery Determination is made as to such Mortgage Loan or (iii) such Mortgage Loan is removed from REMIC I by reason of its being purchased, sold or replaced pursuant to or as contemplated by Section 2.03, Section 3.13(c) or Section 10.01 of this Agreement. With respect to any REO Property, either of the following events: (i) a Final Recovery Determination is made as to such REO Property or (ii) such REO Property is removed from REMIC I by reason of its being purchased pursuant to Section 10.01.

“Liquidation Proceeds”: The amount (other than Insurance Proceeds, amounts received in respect of the rental of any REO Property prior to REO Disposition, or required to be released to a Mortgagor in accordance with applicable law or the terms of the related Mortgage Loan Documents) received by the Servicer in connection with (i) the taking of all or a part of a Mortgaged Property by exercise of the power of eminent domain or condemnation (other than amounts required to be released to the Mortgagor), (ii) the liquidation of a defaulted Mortgage Loan through a trustee’s sale, foreclosure sale or otherwise, (iii) the repurchase, substitution or sale of a Mortgage Loan or an REO Property pursuant to or as contemplated by Section 2.03, Section 3.13(c), Section 3.21 or Section 10.01 of this Agreement or (iv) any
Subsequent Recoveries. 

“Loan-to-Value Ratio”: As of any date of determination, the fraction, expressed as a percentage, the numerator of which is the principal balance of the related Mortgage Loan at such date and the denominator of which is the Value of the related Mortgaged Property.

 

 

“London Business Day”: Any day on which banks in the Cities of London and New York are open and conducting transactions in United States dollars.

“Loss Severity Percentage”: With respect to any Distribution Date, the percentage equivalent of a fraction, the numerator of which is the amount of Realized Losses incurred on a Mortgage Loan and the denominator of which is the principal balance of such Mortgage Loan immediately prior to the liquidation of such Mortgage Loan.

“Marker Rate”: With respect to the Class CE Interest and any Distribution Date, a per annum rate equal to two (2) times the weighted average of the REMIC II Remittance Rate for each of REMIC II Regular Interest A-1A, REMIC II Regular Interest A-1B1, REMIC II Regular Interest A-1B2, REMIC II Regular Interest A-2A, REMIC II Regular Interest A-2B, REMIC II Regular Interest A-2C, REMIC II Regular Interest A-2D, REMIC II Regular Interest M-1, REMIC II Regular Interest M-2, REMIC II Regular Interest M-3, REMIC II Regular Interest M-4, REMIC II Regular Interest M-5, REMIC II Regular Interest M-6, REMIC II Regular Interest B-1, REMIC II Regular Interest B-2, REMIC II Regular Interest B-3, REMIC II Regular Interest B-4, REMIC II Regular Interest B-5, and REMIC II Regular Interest ZZ, with the rate on each such REMIC II Regular Interest (other
than REMIC II Regular Interest ZZ) subject to a cap equal to the lesser of (i) the related One-Month LIBOR Pass-Through Rate and (ii) the related Net WAC Pass-Through Rate for the corresponding Certificate for the purpose of this calculation for such Distribution Date and with the rate on REMIC II Regular Interest ZZ subject to a cap of zero for the purpose of this calculation; provided however, each such cap for each REMIC II Regular Interest shall be multiplied by a fraction the numerator of which is the actual number of days in the related Interest Accrual Period and the denominator of which is 30.

“Master Servicer”:  As of the Closing Date, Wells Fargo Bank, National Association and thereafter, its respective successors in interest who meet the qualifications of this Agreement. The Master Servicer and the Securities Administrator shall at all times be the same Person or an Affiliate.

“Master Servicer Certification”:  A written certification covering, among other things, the servicing of the Mortgage Loans by the Servicer and signed by an officer of the Master Servicer that complies with (i) the Sarbanes-Oxley Act of 2002, as amended from time to time, and (ii) the February 21, 2003 Statement by the Staff of the Division of Corporation Finance of the Securities and Exchange Commission Regarding Compliance by Asset-Backed Issuers with Exchange Act Rules 13a-14 and 15d-14, as in effect from time to time; provided that if, after the Closing Date (a) the Sarbanes-Oxley Act of 2002 is amended, (b) the Statement referred to in clause (ii) is modified or superseded by any subsequent statement, rule or regulation of the Securities and Exchange Commission or any statement of a division thereof, or (c) any future releases,
rules and regulations are published by the Securities and Exchange Commission from time to time pursuant to the Sarbanes-Oxley Act of 2002, which in any such case affects the form or substance of the required certification and results in the required certification being, in the reasonable judgment of the Master Servicer, materially more onerous than the form of the required certification as of the Closing Date, the Master Servicer Certification shall be as agreed to by the Master Servicer, the Depositor and the Seller following a negotiation in good faith to determine how to comply with any such new requirements.

 

 

“Master Servicer Event of Default”:  One or more of the events described in Section 8.01(b).

“Master Servicing Fee”: With respect to each Mortgage Loan and for any calendar month, an amount equal to one-twelfth of the product of the Master Servicing Fee Rate multiplied by the Scheduled Principal Balance of the Mortgage Loans as of the Due Date in the preceding calendar month.

“Master Servicing Fee Rate”: 0.00% per annum.

“Maximum ZZ Uncertificated Interest Deferral Amount”: With respect to any Distribution Date, the excess of (i) accrued interest at the REMIC II Remittance Rate applicable to REMIC II Regular Interest ZZ for such Distribution Date on a balance equal to the Uncertificated Balance of REMIC II Regular Interest ZZ minus the REMIC II Overcollateralization Amount, in each case for such Distribution Date, over (ii) Uncertificated Interest on REMIC II Regular Interest A-1A, REMIC II Regular Interest A-1B1, REMIC II Regular Interest A-1B2, REMIC II Regular Interest A-2A, REMIC II Regular Interest A-2B, REMIC II Regular Interest A-2C, REMIC II Regular Interest A-2D, REMIC II Regular Interest M-1, REMIC II Regular Interest M-2, REMIC II Regular Interest M-3, REMIC II Regular Interest M-4, REMIC II Regular Interest M-5, REMIC II Regular Interest
M-6, REMIC II Regular Interest B-1, REMIC II Regular Interest B-2, REMIC II Regular Interest B-3, REMIC II Regular Interest B-4, REMIC II Regular Interest B-5 for such Distribution Date, with the rate on each such REMIC II Regular Interest subject to a cap equal to the lesser of (i) the related One-Month LIBOR Pass-Through Rate and (ii) the related Net WAC Pass-Through Rate for the Corresponding Certificate for the purpose of this calculation for such Distribution Date; provided however, each such cap for each REMIC II Regular Interest shall be multiplied by a fraction the numerator of which is the actual number of days in the related Interest Accrual Period and the denominator of which is 30.

“Maximum Mortgage Rate”: With respect to each Adjustable Rate Mortgage Loan, the percentage set forth in the related Mortgage Note as the maximum Mortgage Rate thereunder.

“MERS”:  Mortgage Electronic Registration Systems, Inc., a corporation organized and existing under the laws of the State of Delaware, or any successor thereto.

“MERS® System”:  The system of recording transfers of mortgages electronically maintained by MERS.

“Mezzanine Certificate”: Any Class M-1, Class M-2, Class M-3, Class M-4, Class M-5 or Class M-6 Certificate.

“MIN”:  The Mortgage Identification Number for Mortgage Loans registered with MERS on the MERS® System.

“Minimum Mortgage Rate”: With respect to each Adjustable Rate Mortgage Loan, the percentage set forth in the related Mortgage Note as the minimum Mortgage Rate thereunder.

 

 

“MOM Loan”:  With respect to any Mortgage Loan, MERS acting as the mortgagee of such Mortgage Loan, solely as nominee for the originator of such Mortgage Loan and its successors and assigns, at the origination thereof.

“Monthly Payment”: With respect to any Mortgage Loan, the scheduled monthly payment of principal and interest on such Mortgage Loan which is payable by the related Mortgagor from time to time under the related Mortgage Note, determined: (a) after giving effect to (i) any Deficient Valuation and/or Debt Service Reduction with respect to such Mortgage Loan and (ii) any reduction in the amount of interest collectible from the related Mortgagor pursuant to the Relief Act or similar state laws; (b) without giving effect to any extension granted or agreed to by the Servicer pursuant to Section 3.01 of this Agreement; and (c) on the assumption that all other amounts, if any, due under such Mortgage Loan are paid when due.

“Moody’s”:  Moody’s Investors Service, Inc. or any successor in interest.

“Mortgage”: The mortgage, deed of trust or other instrument creating a first lien on and first priority security interest in, a Mortgaged Property securing a Mortgage Note.

“Mortgage File”: The Mortgage Loan Documents pertaining to a particular Mortgage Loan.

“Mortgage Loan”: Each mortgage loan transferred and assigned to the Trustee and the Mortgage Loan Documents for which have been delivered to the Custodian pursuant to Section 2.01 of this Agreement and pursuant to the Custodial Agreement, as held from time to time as a part of the Trust Fund, the Mortgage Loans so held being identified in the Mortgage Loan Schedule.

“Mortgage Loan Documents”:  The documents evidencing or relating to each Mortgage Loan delivered to the Custodian under the Custodial Agreement on behalf of the Trustee.

“Mortgage Loan Purchase Agreement”: Shall mean the Mortgage Loan Purchase Agreement dated as of October 28, 2005, between the Depositor and the Seller.

“Mortgage Loan Schedule”: As of any date, the list of Mortgage Loans included in REMIC I on such date, separately identifying the Group IA Mortgage Loans, the Group IB Mortgage Loans and the Group II Mortgage Loans, attached hereto as Schedule 1. The Depositor shall deliver or cause the delivery of the initial Mortgage Loan Schedule to the Servicer, the Master Servicer, the Custodian and the Trustee on the Closing Date. The Mortgage Loan Schedule shall set forth the following information with respect to each Mortgage Loan:

	
            (i)
 	
            the Mortgage Loan identifying number;
 
	
            (ii)
 	
            the Mortgagor’s first and last name;
 	
             

(iii)          the street address of the Mortgaged Property including the state and zip code;

 

 

(iv)          a code indicating whether the Mortgaged Property is owner-occupied;

(v)            the type of Residential Dwelling constituting the Mortgaged Property;

	
            (vi)
 	
            the original months to maturity;
 

(vii)         the original date of the Mortgage Loan and the remaining months to maturity from the Cut-off Date, based on the original amortization schedule;

	
            (viii)
 	
            the Loan-to-Value Ratio at origination;
 

(ix)          the Mortgage Rate in effect immediately following the Cut-off Date;

(x)            the date on which the first Monthly Payment was due on the Mortgage Loan;

	
            (xi)
 	
            the stated maturity date;
 	
             

	
            (xii)
 	
            the amount of the Monthly Payment at origination;
 

(xiii)        the amount of the Monthly Payment as of the Cut-off Date;

(xiv)        the last Due Date on which a Monthly Payment was actually applied to the unpaid Stated Principal Balance;

	
            (xv)
 	
            the original principal amount of the Mortgage Loan;
 

(xvi)        the Stated Principal Balance of the Mortgage Loan as of the close of business on the Cut-off Date;

(xvii)       with respect to each Adjustable Rate Mortgage Loan, the first Adjustment Date;

(xviii)      with respect to each Adjustable Rate Mortgage Loan, the Gross Margin;

(xix)        a code indicating the purpose of the loan (i.e., purchase financing, rate/term refinancing, cash-out refinancing);

(xx)         with respect to each Adjustable Rate Mortgage Loan, the Maximum Mortgage Rate under the terms of the Mortgage Note;

 

 

(xxi)         with respect to each Adjustable Rate Mortgage Loan, the Minimum Mortgage Rate under the terms of the Mortgage Note;

	
            (xxii)
 	
            the Mortgage Rate at origination;
 

(xxiii)       with respect to each Adjustable Rate Mortgage Loan, the Periodic Rate Cap;

(xxiv)      with respect to each Adjustable Rate Mortgage Loan, the first Adjustment Date immediately following the Cut-off Date;

(xxv)       with respect to each Adjustable Rate Mortgage Loan, the Index;

(xxvi)      the date on which the first Monthly Payment was due on the Mortgage Loan and, if such date is not consistent with the Due Date currently in effect, such Due Date;

(xxvii)     a code indicating whether the Mortgage Loan is an Adjustable Rate Mortgage Loan or a fixed rate Mortgage Loan;

(xxviii)    a code indicating the documentation style (i.e., full, stated or limited);

(xxix)       a code indicating if the Mortgage Loan is subject to a primary insurance policy or lender paid mortgage insurance policy and the name of the insurer;

	
            (xxx)
 	
            the Appraised Value of the Mortgaged Property;
 

(xxxi)       the sale price of the Mortgaged Property, if applicable;

(xxxii)      a code indicating whether the Mortgage Loan is subject to a Prepayment Charge, the term of such Prepayment Charge and the amount of such Prepayment Charge;

(xxxiii)      the product type (e.g., 2/28, 15 year fixed, 30 year fixed, 15/30 balloon, etc.);

	
            (xxxiv)
 	
            the Mortgagor’s debt to income ratio;
 
	
            (xxxv)
 	
            the FICO score at origination;
 	
             

(xxxvi)     with respect to each Mortgage Loan registered on MERS, the MIN; and

 

 

(xxxvii)   a code indicating whether the Mortgage Loan is covered by a lender paid mortgage insurance policy and, if applicable, the rate payable in connection therewith.

The Mortgage Loan Schedule shall set forth the following information with respect to the Mortgage Loans in the aggregate as of the Cut-off Date: (1) the number of Mortgage Loans; (2) the current principal balance of the Mortgage Loans; (3) the weighted average Mortgage Rate of the Mortgage Loans; and (4) the weighted average maturity of the Mortgage Loans. The Mortgage Loan Schedule shall be amended from time to time by the Depositor in accordance with the provisions of this Agreement. With respect to any Qualified Substitute Mortgage Loan, the Cut-off Date shall refer to the related Cut-off Date for such Mortgage Loan, determined in accordance with the definition of Cut-off Date herein.

“Mortgage Note”: The original executed note or other evidence of the indebtedness of a Mortgagor under a Mortgage Loan.

“Mortgage Rate”: With respect to each Mortgage Loan, the annual rate at which interest accrues on such Mortgage Loan from time to time in accordance with the provisions of the related Mortgage Note, which rate with respect to each Adjustable Rate Mortgage Loan (A) as of any date of determination until the first Adjustment Date following the Cut-off Date shall be the rate set forth in the Mortgage Loan Schedule as the Mortgage Rate in effect immediately following the Cut-off Date and (B) as of any date of determination thereafter shall be the rate as adjusted on the most recent Adjustment Date equal to the sum, rounded to the nearest 0.125% as provided in the Mortgage Note, of the Index, as most recently available as of a date prior to the Adjustment Date as set forth in the related Mortgage Note, plus the related Gross Margin;
provided that the Mortgage Rate on such Adjustable Rate Mortgage Loan on any Adjustment Date shall never be more than the lesser of (i) the sum of the Mortgage Rate in effect immediately prior to the Adjustment Date plus the related Periodic Rate Cap, if any, and (ii) the related Maximum Mortgage Rate, and shall never be less than the greater of (i) the Mortgage Rate in effect immediately prior to the Adjustment Date less the Periodic Rate Cap, if any, and (ii) the related Minimum Mortgage Rate. With respect to each Mortgage Loan that becomes an REO Property, as of any date of determination, the annual rate determined in accordance with the immediately preceding sentence as of the date such Mortgage Loan became an REO Property.

“Mortgaged Property”: The underlying property securing a Mortgage Loan, including any REO Property, consisting of an Estate in Real Property improved by a Residential Dwelling.

“Mortgagor”: The obligor on a Mortgage Note.

“Net Monthly Excess Cashflow”: With respect to any Distribution Date, the sum of (i) any Overcollateralization Reduction Amount for such Distribution Date and (ii) the excess of (x) the Available Distribution Amount for such Distribution Date over (y) the sum for such Distribution Date of (A) the aggregate Senior Interest Distribution Amounts payable to the Holders of the Class A Certificates, (B) the aggregate Interest Distribution Amounts payable to 

 

the holders of the Mezzanine Certificates and the Class B Certificates and (C) the Principal Remittance Amount.

“Net Mortgage Rate”: With respect to any Mortgage Loan (or the related REO Property) as of any date of determination, a per annum rate of interest equal to the then applicable Mortgage Rate for such Mortgage Loan minus the Administration Fee Rate.

“Net Swap Payment”:  With respect to each Distribution Date, the net payment required to be made pursuant to the terms of the Swap Agreement by either the Swap Provider or the Supplemental Interest Trust, which net payment shall not take into account any Swap Termination Payment.

“Net WAC Pass-Through Rate”: With respect to the Class A-1A Certificates and any Distribution Date, a rate per annum (adjusted for the actual number of days elapsed in the related Interest Accrual Period) equal to a fraction, expressed as a percentage, the numerator of which is the amount of interest which accrued on the Group IA Mortgage Loans in the prior calendar month minus the fees payable to the Servicer, the Master Servicer and any fee payable in connection with any lender paid mortgage insurance policies with respect to the Group IA Mortgage Loans for such Distribution Date and the Group IA Allocation Percentage of any Net Swap Payment payable to the Swap Provider or Swap Termination Payment payable to the Swap Provider which was not caused by the occurrence of a Swap Provider Trigger Event, in each case for such Distribution
Date and the denominator of which is the aggregate principal balance of the Group IA Mortgage Loans as of the last day of the immediately preceding Due Period (or as of the Cut-off Date with respect to the first Distribution Date), after giving effect to Principal Prepayments received during the related Prepayment Period.  For federal income tax purposes, the economic equivalent of such rate shall be expressed as the weighted average of (adjusted for the actual number of days elapsed in the related Interest Accrual Period) the REMIC II Remittance Rate on REMIC II Regular Interest IA-GRP, weighted on the basis of the Uncertificated Balance of such REMIC II Regular Interest.  

With respect to the Class A-1B1 Certificates and Class A-1B2 Certificates and any Distribution Date, a rate per annum (adjusted for the actual number of days elapsed in the related Interest Accrual Period) equal to a fraction, expressed as a percentage, the numerator of which is the amount of interest which accrued on the Group IB Mortgage Loans in the prior calendar month minus the fees payable to the Servicer, the Master Servicer and any fee payable in connection with any lender paid mortgage insurance policies with respect to the Group IB Mortgage Loans for such Distribution Date and the Group IB Allocation Percentage of any Net Swap Payment payable to the Swap Provider or Swap Termination Payment payable to the Swap Provider which was not caused by the occurrence of a Swap Provider Trigger Event, in each case for such Distribution Date and the denominator of which is the aggregate
principal balance of the Group IB Mortgage Loans as of the last day of the immediately preceding Due Period (or as of the Cut-off Date with respect to the first Distribution Date), after giving effect to Principal Prepayments received during the related Prepayment Period.  For federal income tax purposes, the economic equivalent of such rate shall be expressed as the weighted average of (adjusted for the actual number of days elapsed in the related Interest Accrual Period) the REMIC II Remittance Rate on REMIC II Regular Interest IB-GRP, weighted on the basis of the Uncertificated Balance of such REMIC II Regular Interest.

 

 

With respect to the Class A-2 Certificates and any Distribution Date, a rate per annum (adjusted for the actual number of days elapsed in the related Interest Accrual Period) equal to a fraction, expressed as a percentage, the numerator of which is the amount of interest which accrued on the Group II Mortgage Loans in the prior calendar month minus the fees payable to the Servicer, the Master Servicer and any fee payable in connection with any lender paid mortgage insurance policies with respect to the Group II Mortgage Loans for such Distribution Date and the Group II Allocation Percentage of any Net Swap Payment payable to the Swap Provider or Swap Termination Payment payable to the Swap Provider which was not caused by the occurrence of a Swap Provider Trigger Event, in each case for such Distribution Date and the denominator of which is the aggregate principal balance of the Group II
Mortgage Loans as of the last day of the immediately preceding Due Period (or as of the Cut-off Date with respect to the first Distribution Date), after giving effect to Principal Prepayments received during the related Prepayment Period.  For federal income tax purposes, the economic equivalent of such rate shall be expressed as the weighted average of (adjusted for the actual number of days elapsed in the related Interest Accrual Period) the REMIC II Remittance Rate on REMIC II Regular Interest II-GRP, weighted on the basis of the Uncertificated Balance of such REMIC II Regular Interest.

With respect to the Mezzanine Certificates and any Distribution Date a rate per annum equal to (x) the weighted average (weighted in proportion to the results of subtracting from the Scheduled Principal Balance of each loan group, the Certificate Principal Balance of the related Class A Certificates) of (i) the Net WAC Pass-Through Rate for the Class A-1A Certificates, (ii) the Net WAC Pass-Through Rate for the Class A-1B1 Certificates and Class A-2B2 Certificates and (iii) the Net WAC Pass-Through Rate for the Class A-2 Certificates. For federal income tax purposes, the economic equivalent of such rate shall be expressed as the weighted average of (adjusted for the actual number of days elapsed in the related Interest Accrual Period) the REMIC II Remittance Rates on (a) REMIC II Regular Interest IA-SUB, subject to a cap and a floor equal to the REMIC II Remittance Rate on REMIC II
Regular Interest IA-GRP, (b) REMIC II Regular Interest IB-SUB, subject to a cap and a floor equal to the REMIC II Remittance Rate on REMIC II Regular Interest IB-GRP and (c) REMIC II Regular Interest II-SUB, subject to a cap and a floor equal to the REMIC II Remittance Rate on REMIC II Regular Interest II-GRP, weighted on the basis of the Uncertificated Balance of each such REMIC II Regular Interest.

With respect to the Class B Certificates and any Distribution Date, a rate per equal to (x) the weighted average (weighted in proportion to the results of subtracting from the Scheduled Principal Balance of each loan group, the Certificate Principal Balance of the related Class A Certificates) of (i) the Net WAC Pass-Through Rate for the Class A-1A Certificates, (ii) the Net WAC Pass-Through Rate for the Class A-1B1 Certificates and Class A-1B2 Certificates and (iii) the Net WAC Pass-Through Rate for the Class A-2 Certificates. For federal income tax purposes, the economic equivalent of such rate shall be expressed as the weighted average of (adjusted for the actual number of days elapsed in the related Interest Accrual Period) the REMIC II Remittance Rates on (a) REMIC II Regular Interest IA-SUB, subject to a cap and a floor equal to the REMIC II Remittance Rate on REMIC II Regular
Interest IA-GRP, (b) REMIC II Regular Interest IB-SUB, subject to a cap and a floor equal to the REMIC II Remittance Rate on REMIC II Regular Interest IB-GRP and (c) REMIC II Regular Interest II-SUB, subject to a cap and a floor equal to the REMIC II Remittance Rate on REMIC II Regular 

 

Interest II-GRP, weighted on the basis of the Uncertificated Balance of each such REMIC II Regular Interest.

“Net WAC Rate Carryover Amount”: With respect to any Class A Certificate,  Mezzanine Certificate or Class B Certificate and any Distribution Date on which the Pass-Through Rate is limited to the applicable Net WAC Pass-Through Rate, an amount equal to the sum of (i) the excess of (x) the amount of interest such Class would have been entitled to receive on such Distribution Date if the applicable Net WAC Pass-Through Rate would not have been applicable to such Class on such Distribution Date over (y) the amount of interest paid to such Class on such Distribution Date at the applicable Net WAC Pass-Through Rate plus (ii) the related Net WAC Rate Carryover Amount for the previous Distribution Date not previously distributed to such Class together with interest thereon at a rate equal to the Pass-Through Rate for such Class for the most
recently ended Interest Accrual Period without taking into account the applicable Net WAC Pass-Through Rate.

“New Lease”: Any lease of REO Property entered into on behalf of REMIC I, including any lease renewed or extended on behalf of REMIC I, if REMIC I has the right to renegotiate the terms of such lease.

“Nonrecoverable P&I Advance”: Any P&I Advance previously made or proposed to be made in respect of a Mortgage Loan or REO Property that, in the good faith business judgment of the Servicer or a successor to the Servicer (including the Master Servicer) will not or, in the case of a proposed P&I Advance, would not be ultimately recoverable from related Late Collections, Insurance Proceeds or Liquidation Proceeds on such Mortgage Loan or REO Property as provided herein.

“Nonrecoverable Servicing Advance”: Any Servicing Advance previously made or proposed to be made in respect of a Mortgage Loan or REO Property that, in the good faith business judgment of the Servicer or a successor to the Servicer (including the Master Servicer) will not or, in the case of a proposed Servicing Advance, would not be ultimately recoverable from related Late Collections, Insurance Proceeds or Liquidation Proceeds on such Mortgage Loan or REO Property as provided herein.

“Non-United States Person”: Any Person other than a United States Person.

“Offered Certificates”: The Class A Certificates and the Mezzanine Certificates, collectively.

“Officer’s Certificate”: With respect to any Person, a certificate signed by the Chairman of the Board, the Vice Chairman of the Board, the President or a vice president (however denominated), or by the Treasurer, the Secretary, or one of the assistant treasurers or assistant secretaries of such Person (or, in the case of a Person that is not a corporation, signed by the person or persons having like responsibilities).

“One-Month LIBOR”: With respect to the Class A Certificates, the Mezzanine Certificates, the Class B Certificates, REMIC II Regular Interests (other than REMIC II Regular Interest P) and any Interest Accrual Period therefor, the rate determined by the Securities Administrator on the related Interest Determination Date on the basis of the offered rate for one-

 

month U.S. dollar deposits, as such rate appears on Telerate Page 3750 as of 11:00 a.m. (London time) on such Interest Determination Date; provided that if such rate does not appear on Telerate Page 3750, the rate for such date will be determined on the basis of the offered rates of the Reference Banks for one-month U.S. dollar deposits, as of 11:00 a.m. (London time) on such Interest Determination Date. In such event, the Securities Administrator will request the principal London office of each of the Reference Banks to provide a quotation of its rate. If on such Interest Determination Date, two or more Reference Banks provide such offered quotations, One-Month LIBOR for the related Interest Accrual Period shall be the arithmetic mean of such offered quotations (rounded upwards if necessary to the nearest whole multiple of 1/16). If on such Interest Determination Date, fewer than two Reference Banks
provide such offered quotations, One-Month LIBOR for the related Interest Accrual Period shall be the higher of (i) LIBOR as determined on the previous Interest Determination Date and (ii) the Reserve Interest Rate. Notwithstanding the foregoing, if, under the priorities described above, LIBOR for an Interest Determination Date would be based on LIBOR for the previous Interest Determination Date for the third consecutive Interest Determination Date, the Securities Administrator shall select an alternative comparable index (over which the Securities Administrator has no control), used for determining one-month Eurodollar lending rates that is calculated and published (or otherwise made available) by an independent party. The establishment of One-Month LIBOR by the Securities Administrator and the Securities Administrator’s subsequent calculation of the One-Month LIBOR Pass-Through Rates for the relevant Interest Accrual Period, shall, in the absence of manifest error, be final and
binding.

“One-Month LIBOR Pass-Through Rate”: With respect to the Class A-1A Certificates and, for purposes of the definition of “Marker Rate”, REMIC II Regular Interest A-1A, a per annum rate equal to One-Month LIBOR plus the related Certificate Margin.

With respect to the Class A-1B1 Certificates and, for purposes of the definition of “Marker Rate”, REMIC II Regular Interest A-1B1, a per annum rate equal to One-Month LIBOR plus the related Certificate Margin.

With respect to the Class A-1B2 Certificates and, for purposes of the definition of “Marker Rate”, REMIC II Regular Interest A-1B2, a per annum rate equal to One-Month LIBOR plus the related Certificate Margin.

With respect to the Class A-2A Certificates and, for purposes of the definition of “Marker Rate”, REMIC II Regular Interest A-2A, a per annum rate equal to One-Month LIBOR plus the related Certificate Margin.

With respect to the Class A-2B Certificates and, for purposes of the definition of “Marker Rate”, REMIC II Regular Interest A-2B, a per annum rate equal to One-Month LIBOR plus the related Certificate Margin.

With respect to the Class A-2C Certificates and, for purposes of the definition of “Marker Rate”, REMIC II Regular Interest A-2C, a per annum rate equal to One-Month LIBOR plus the related Certificate Margin.

 

 

With respect to the Class A-2D Certificates and, for purposes of the definition of “Marker Rate”, REMIC II Regular Interest A-2D, a per annum rate equal to One-Month LIBOR plus the related Certificate Margin.

With respect to the Class M-1 Certificates and, for purposes of the definition of “Marker Rate”, REMIC II Regular Interest M-1, a per annum rate equal to One-Month LIBOR plus the related Certificate Margin.

With respect to the Class M-2 Certificates and, for purposes of the definition of “Marker Rate”, REMIC II Regular Interest M-2, a per annum rate equal to One-Month LIBOR plus the related Certificate Margin.

With respect to the Class M-3 Certificates and, for purposes of the definition of “Marker Rate”, REMIC II Regular Interest M-3, a per annum rate equal to One-Month LIBOR plus the related Certificate Margin.

With respect to the Class M-4 Certificates and, for purposes of the definition of “Marker Rate”, REMIC II Regular Interest M-4, a per annum rate equal to One-Month LIBOR plus the related Certificate Margin.

With respect to the Class M-5 Certificates and, for purposes of the definition of “Marker Rate”, REMIC II Regular Interest M-5, a per annum rate equal to One-Month LIBOR plus the related Certificate Margin.

With respect to the Class M-6 Certificates and, for purposes of the definition of “Marker Rate”, REMIC II Regular Interest M-6, a per annum rate equal to One-Month LIBOR plus the related Certificate Margin.

With respect to the Class B-1 Certificates and, for purposes of the definition of “Marker Rate”, REMIC II Regular Interest B-1, a per annum rate equal to One-Month LIBOR plus the related Certificate Margin.

With respect to the Class B-2 Certificates and, for purposes of the definition of “Marker Rate”, REMIC II Regular Interest B-2, a per annum rate equal to One-Month LIBOR plus the related Certificate Margin.

With respect to the Class B-3 Certificates and, for purposes of the definition of “Marker Rate”, REMIC II Regular Interest B-3, a per annum rate equal to One-Month LIBOR plus the related Certificate Margin.

With respect to the Class B-4 Certificates and, for purposes of the definition of “Marker Rate”, REMIC II Regular Interest B-4, a per annum rate equal to One-Month LIBOR plus the related Certificate Margin.

With respect to the Class B-5 Certificates and, for purposes of the definition of “Marker Rate”, REMIC II Regular Interest B-5, a per annum rate equal to One-Month LIBOR plus the related Certificate Margin.

 

 

“Opinion of Counsel”: A written opinion of counsel, who may, without limitation, be salaried counsel for the Depositor, the Servicer, the Securities Administrator or the Master Servicer, acceptable to the Trustee, except that any opinion of counsel relating to (a) the qualification of any REMIC as a REMIC or (b) compliance with the REMIC Provisions must be an opinion of Independent counsel.

“Optional Termination Date”: The Distribution Date on which the aggregate principal balance of the Mortgage Loans (and properties acquired in respect thereof) remaining in the Trust Fund is reduced to less than or equal to 10% of the aggregate principal balance of the Mortgage Loans as of the Cut-off Date.

“Originator”:  Ameriquest Mortgage Company.

“Overcollateralization Amount”: With respect to any Distribution Date, the excess, if any, of (a) the aggregate Stated Principal Balances of the Mortgage Loans and REO Properties immediately following such Distribution Date over (b) the sum of the aggregate Certificate Principal Balances of the Class A Certificates, the Mezzanine Certificates, the Class B Certificates and the Class P Certificates as of such Distribution Date (after taking into account the payment of the Principal Remittance Amount on such Distribution Date).

“Overcollateralization Increase Amount”:  With respect to any Distribution Date, the amount of Net Monthly Excess Cashflow actually applied as an accelerated payment of principal to the Class A Certificates, the Mezzanine Certificates and the Class B Certificates then entitled to distributions of principal to the extent the Required Overcollateralization Amount exceeds the Overcollateralization Amount.

“Overcollateralization Reduction Amount”: With respect to any Distribution Date, the lesser of (i) the amount by which the Overcollateralization Amount exceeds the Required Overcollateralization Amount and (ii) the Principal Remittance Amount; provided however that on any Distribution Date on which a Trigger Event is in effect, the Overcollateralization Reduction Amount shall equal zero.

“Ownership Interest”: As to any Certificate, any ownership or security interest in such Certificate, including any interest in such Certificate as the Holder thereof and any other interest therein, whether direct or indirect, legal or beneficial, as owner or as pledgee.

“P&I Advance”: As to any Mortgage Loan or REO Property, any advance made by the Servicer in respect of any Determination Date pursuant to Section 5.03 of this Agreement, an Advance Financing Person pursuant to Section 3.25 of this Agreement or in respect of any Distribution Date by a successor servicer (including the Master Servicer) pursuant to Section 8.02 of this Agreement (which advances shall not include principal or interest shortfalls due to bankruptcy proceedings or application of the Relief Act or similar state or local laws.)

“Pass-Through Rate”: With respect to the Class A Certificates, the Mezzanine Certificates, the Class B Certificates and the Class B Interests, and any Distribution Date, a rate per annum equal to the lesser of (i) the related One-Month LIBOR Pass-Through Rate for such Distribution Date and (ii) the related Net WAC Pass-Through Rate for such Distribution Date.

 

 

With respect to the Class CE Interest and any Distribution Date, a rate per annum equal to the percentage equivalent of a fraction, the numerator of which is the sum of the amounts calculated pursuant to clauses (i) through (xxi) below, and the denominator of which is the aggregate Uncertificated Balances of REMIC II Regular Interest AA, REMIC II Regular Interest A-1A, REMIC II Regular Interest A-1B1, REMIC II Regular Interest A-1B2, REMIC II Regular Interest A-2A, REMIC II Regular Interest A-2B, REMIC II Regular Interest A-2C, REMIC II Regular Interest A-2D, REMIC II Regular Interest M-1, REMIC II Regular Interest M-2, REMIC II Regular Interest M-3, REMIC II Regular Interest M-4, REMIC II Regular Interest M-5, REMIC II Regular Interest M-6, REMIC II Regular Interest B-1, REMIC II Regular Interest B-2, REMIC II Regular Interest B-3, REMIC II Regular Interest B-4, REMIC II Regular Interest
B-5 and REMIC II Regular Interest ZZ. For purposes of calculating the Pass-Through Rate for the Class CE Interest, the numerator is equal to the sum of the following components:

(i)         the REMIC II Remittance Rate for REMIC II Regular Interest AA minus the Marker Rate, applied to an amount equal to the Uncertificated Balance of REMIC II Regular Interest AA;

(ii)         the REMIC II Remittance Rate for REMIC II Regular Interest A-1A minus the Marker Rate, applied to an amount equal to the Uncertificated Balance of REMIC II Regular Interest A-1A;

(iii)        the REMIC II Remittance Rate for REMIC II Regular Interest A-1B1 minus the Marker Rate, applied to an amount equal to the Uncertificated Balance of REMIC II Regular Interest A-1B1;

(iv)        the REMIC II Remittance Rate for REMIC II Regular Interest A-1B2 minus the Marker Rate, applied to an amount equal to the Uncertificated Balance of REMIC II Regular Interest A-1B2;

(v)        the REMIC II Remittance Rate for REMIC II Regular Interest A-2A minus the Marker Rate, applied to an amount equal to the Uncertificated Balance of REMIC II Regular Interest A-2A;

(vi)        the REMIC II Remittance Rate for REMIC II Regular Interest A-2B minus the Marker Rate, applied to an amount equal to the Uncertificated Balance of REMIC II Regular Interest A-2B;

(vii)       the REMIC II Remittance Rate for REMIC II Regular Interest A-2C minus the Marker Rate, applied to an amount equal to the Uncertificated Balance of REMIC II Regular Interest A-2C;

(viii)      the REMIC II Remittance Rate for REMIC II Regular Interest A-2D minus the Marker Rate, applied to an amount equal to the Uncertificated Balance of REMIC II Regular Interest A-2D;

 

 

(ix)        the REMIC II Remittance Rate for REMIC II Regular Interest M-1 minus the Marker Rate, applied to an amount equal to the Uncertificated Balance of REMIC II Regular Interest M-1;

(x)        the REMIC II Remittance Rate for REMIC II Regular Interest M-2 minus the Marker Rate, applied to an amount equal to the Uncertificated Balance of REMIC II Regular Interest M-2;

(xi)        the REMIC II Remittance Rate for REMIC II Regular Interest M-3 minus the Marker Rate, applied to an amount equal to the Uncertificated Balance of REMIC II Regular Interest M-3;

(xii)       the REMIC II Remittance Rate for REMIC II Regular Interest M-4 minus the Marker Rate, applied to an amount equal to the Uncertificated Balance of REMIC II Regular Interest M-4;

(xiii)      the REMIC II Remittance Rate for REMIC II Regular Interest M-5 minus the Marker Rate, applied to an amount equal to the Uncertificated Balance of REMIC II Regular Interest M-5;

(xiv)      the REMIC II Remittance Rate for REMIC II Regular Interest M-6 minus the Marker Rate, applied to an amount equal to the Uncertificated Balance of REMIC II Regular Interest M-6;

(xv)       the REMIC II Remittance Rate for REMIC II Regular Interest B-1 minus the Marker Rate, applied to an amount equal to the Uncertificated Balance of REMIC II Regular Interest B-1;

(xvi)      the REMIC II Remittance Rate for REMIC II Regular Interest B-2 minus the Marker Rate, applied to an amount equal to the Uncertificated Balance of REMIC II Regular Interest B-2;

(xvii)     the REMIC II Remittance Rate for REMIC II Regular Interest B-3 minus the Marker Rate, applied to an amount equal to the Uncertificated Balance of REMIC II Regular Interest B-3;

(xviii)    the REMIC II Remittance Rate for REMIC II Regular Interest B-4 minus the Marker Rate, applied to an amount equal to the Uncertificated Balance of REMIC II Regular Interest B-4;

(xix)      the REMIC II Remittance Rate for REMIC II Regular Interest B-5 minus the Marker Rate, applied to an amount equal to the Uncertificated Balance of REMIC II Regular Interest B-5; 

(xx)       the REMIC II Remittance Rate for REMIC II Regular Interest ZZ minus the Marker Rate, applied to an amount equal to the Uncertificated Balance of REMIC II Regular Interest ZZ; and

 

 

	
            (xxi)
 	
            100% of the interest on REMIC II Regular Interest P.
 

With respect to the Class CE Certificate, the Class CE Certificate shall not have a Pass-Through Rate, but current interest for such Certificate and each Distribution Date shall be an amount equal to 100% of the amounts distributable to the Class CE Interest for such Distribution Date.

With respect to the Class P Certificate and the Class P Interest, 0.00% per annum.

With respect to the REMIC III Regular Interest IO, REMIC III Regular Interest IO shall not have a Pass-Through Rate, but current interest for REMIC III Regular Interest IO and each Distribution Date shall be an amount equal to 100% of the amounts distributable to REMIC II Regular Interest IO for such Distribution Date.

With respect to the Class IO Interest, Class IO Interest shall not have a Pass-Through Rate, but current interest for the Class IO Interest and each Distribution Date shall be an amount equal to 100% of the amounts distributable to the REMIC III Regular Interest IO for such Distribution Date. 

“Percentage Interest”:  With respect to any Class of Certificates (other than the Residual Certificates), the undivided percentage ownership in such Class evidenced by such Certificate, expressed as a percentage, the numerator of which is the initial Certificate Principal Balance represented by such Certificate and the denominator of which is the aggregate initial Certificate Principal Balance or Notional Amount of all of the Certificates of such Class. The Class A Certificates, the Mezzanine Certificates and the Class B Certificates are issuable only in minimum Percentage Interests corresponding to minimum initial Certificate Principal Balances of $100,000 and integral multiples of $1.00 in excess thereof.  The Class P Certificates are issuable only in Percentage Interests corresponding to initial Certificate Principal Balances of
$20 and integral multiples thereof. The Class CE Certificates are issuable only in minimum Percentage Interests corresponding to minimum initial Notional Balances of $10,000 and integral multiples of $1.00 in excess thereof; provided, however, that a single Certificate of each such Class of Certificates may be issued having a Percentage Interest corresponding to the remainder of the aggregate initial Notional Balance of such Class or to an otherwise authorized denomination for such Class plus such remainder. With respect to any Residual Certificate, the undivided percentage ownership in such Class evidenced by such Certificate, as set forth on the face of such Certificate. The Residual Certificates are issuable in Percentage Interests of 20% and integral multiples of 5% in excess thereof.

“Periodic Rate Cap”: With respect to each Adjustable Rate Mortgage Loan and any Adjustment Date therefor, the fixed percentage set forth in the related Mortgage Note, which is the maximum amount by which the Mortgage Rate for such Adjustable Rate Mortgage Loan may increase or decrease (without regard to the Maximum Mortgage Rate or the Minimum Mortgage Rate) on such Adjustment Date from the Mortgage Rate in effect immediately prior to such Adjustment Date.

 

 

“Permitted Investments”: Any one or more of the following obligations or securities acquired at a purchase price of not greater than par, regardless of whether issued by the Depositor, the Servicer, the Master Servicer, the Trustee or any of their respective Affiliates:

(i)         direct obligations of, or obligations fully guaranteed as to timely payment of principal and interest by, the United States or any agency or instrumentality thereof, provided such obligations are backed by the full faith and credit of the United States;

(ii)         (A) demand and time deposits in, certificates of deposit of, bankers’ acceptances issued by or federal funds sold by any depository institution or trust company (including the Trustee or its agent acting in their respective commercial capacities) incorporated under the laws of the United States of America or any state thereof and subject to supervision and examination by federal and/or state authorities, so long as, at the time of such investment or contractual commitment providing for such investment, such depository institution or trust company (or, if the only Rating Agency is S&P, in the case of the principal depository institution in a depository institution holding company, debt obligations of the depository institution holding company) or its ultimate parent has a short-term uninsured debt rating
in the highest available rating category of Moody’s and S&P and provided that each such investment has an original maturity of no more than 365 days; and provided further that, if the only Rating Agency is S&P and if the depository or trust company is a principal subsidiary of a bank holding company and the debt obligations of such subsidiary are not separately rated, the applicable rating shall be that of the bank holding company; and, provided further that, if the original maturity of such short-term obligations of a domestic branch of a foreign depository institution or trust company shall exceed 30 days, the short-term rating of such institution shall be A-1+ in the case of S&P if S&P is the Rating Agency; and (B) any other demand or time deposit or deposit which is fully insured by the FDIC;

(iii)        repurchase obligations with a term not to exceed 30 days with respect to any security described in clause (i) above and entered into with a depository institution or trust company (acting as principal) rated A-1+ or higher by S&P and A2 or higher by Moody’s, provided, however, that collateral transferred pursuant to such repurchase obligation must be of the type described in clause (i) above and must (A) be valued daily at current market prices plus accrued interest, (B) pursuant to such valuation, be equal, at all times, to 105% of the cash transferred by a party in exchange for such collateral and (C) be delivered to such party or, if such party is supplying the collateral, an agent for such party, in such a manner as to accomplish perfection of a security interest in the collateral by possession of
certificated securities;

 

 

(iv)        securities bearing interest or sold at a discount that are issued by any corporation incorporated under the laws of the United States of America or any state thereof and that are rated by each Rating Agency that rates such securities in its highest long-term unsecured rating categories at the time of such investment or contractual commitment providing for such investment;

(v)        commercial paper (including both non-interest-bearing discount obligations and interest-bearing obligations payable on demand or on a specified date not more than 30 days after the date of acquisition thereof) that is rated by each Rating Agency that rates such securities in its highest short-term unsecured debt rating available at the time of such investment;

(vi)        units of money market funds that have been rated “AAA” by S&P or “Aaa” by Moody’s including any such money market fund managed or advised by the Master Servicer, the Trustee or any of their Affiliates; and

(vii)       if previously confirmed in writing to the Trustee, any other demand, money market or time deposit, or any other obligation, security or investment, as may be acceptable to the Rating Agencies as a permitted investment of funds backing securities having ratings equivalent to its highest initial rating of the Class A Certificates;

provided, however, that no instrument described hereunder shall evidence either the right to receive (a) only interest with respect to the obligations underlying such instrument or (b) both principal and interest payments derived from obligations underlying such instrument and the interest and principal payments with respect to such instrument provide a yield to maturity at par greater than 120% of the yield to maturity at par of the underlying obligations.

“Permitted Transferee”: Any Transferee of a Residual Certificate other than a Disqualified Organization or Non-United States Person.

“Person”: Any individual, limited liability company, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof.

“Plan”: Any employee benefit plan or certain other retirement plans and arrangements, including individual retirement accounts and annuities, Keogh plans and bank collective investment funds and insurance company general or separate accounts in which such plans, accounts or arrangements are invested, that are subject to ERISA or Section 4975 of the Code.

“Prepayment Assumption”: A prepayment rate for (a) the Adjustable Rate Mortgage Loans of 100% PPC, which represents (i) a per annum prepayment rate of 5% of the then outstanding principal balance of the Adjustable Rate Mortgage Loans in the first month of the life of the Adjustable Rate Mortgage Loans, (ii) an additional 2% per annum in each month 

 

thereafter through the eleventh month, (iii) building to a constant prepayment rate of 27% per annum beginning in the twelfth month and remaining constant until the twenty-third month, (iv) increasing to and remaining constant at a prepayment rate of 60% per annum beginning in the twenty-fourth month until the twenty-seventh month and (v) decreasing and remaining constant at a prepayment rate of 30% per annum from the twenty-eighth month and thereafter and (b) the fixed-rate Mortgage Loans of 100% PPC, which represents (i) a per annum prepayment rate of 4% of the then outstanding principal balance of the fixed rate Mortgage Loans in the first month of the life of such Mortgage Loans, (ii) an additional 1.72727% per annum in each month thereafter through the eleventh month and (iii) a constant prepayment rate of 23% per annum beginning in the twelfth month and in each month thereafter during the life of the
fixed rate Mortgage Loans; provided, however, the prepayment rate will not exceed 85% per annum in any period for any percentage of PPC.  The Prepayment Assumption is used solely for determining the accrual of original issue discount on the Certificates for federal income tax purposes. 

“Prepayment Charge”: With respect to any Principal Prepayment, any prepayment premium, penalty or charge payable by a Mortgagor in connection with any Principal Prepayment on a Mortgage Loan pursuant to the terms of the related Mortgage Note.

“Prepayment Charge Schedule”:  As of any date, the list of Mortgage Loans providing for a Prepayment Charge included in the Trust Fund on such date, attached hereto as Schedule 2 (including the prepayment charge summary attached thereto).  The Depositor shall deliver or cause the delivery of the Prepayment Charge Schedule to the Servicer, the Master Servicer and the Trustee on the Closing Date. The Prepayment Charge Schedule shall set forth the following information with respect to each Prepayment Charge:

	
            (i)
 	
            the Mortgage Loan identifying number;
 	
             

	
            (ii)
 	
            a code indicating the type of Prepayment Charge;
 

(iii)          the date on which the first Monthly Payment was due on the related Mortgage Loan;

	
            (iv)
 	
            the term of the related Prepayment Charge;
 

(v)           the original Stated Principal Balance of the related Mortgage Loan; and

(vi)          the Stated Principal Balance of the related Mortgage Loan as of the Cut-off Date.

“Prepayment Interest Shortfall”: With respect to any Distribution Date, for each such Mortgage Loan that was the subject of a Principal Prepayment in full or in part during the related Prepayment Period that was applied by the Servicer to reduce the outstanding principal balance of such Mortgage Loan on a date preceding the Due Date in the succeeding Prepayment Period, an amount equal to interest at the applicable Net Mortgage Rate on the amount of such Principal Prepayment for the number of days commencing on the date on which the prepayment is applied and ending on the last day of the calendar month preceding such Distribution Date.  

 

The obligations of the Servicer and the Master Servicer in respect of any Prepayment Interest Shortfall are set forth in Section 3.22 and Section 4.18, respectively of this Agreement.  

“Prepayment Period”:  With respect to any Distribution Date, the calendar month preceding the month in which such Distribution Date occurs.

“Principal Prepayment”: Any voluntary payment of principal made by the Mortgagor on a Mortgage Loan which is received in advance of its scheduled Due Date and which is not accompanied by an amount of interest representing the full amount of scheduled interest due on any Due Date in any month or months subsequent to the month of prepayment.

“Principal Distribution Amount”:  With respect to any Distribution Date is the sum of the Group IA Principal Distribution Amount, Group IB Principal Distribution Amount and Group II Principal Distribution Amount.

“Principal Remittance Amount”:  With respect to any Distribution Date is the sum of the Group IA Principal Remittance Amount, Group IB Principal Remittance Amount and Group II Principal Remittance Amount.

“Purchase Price”: With respect to any Mortgage Loan or REO Property to be purchased pursuant to or as contemplated by Section 2.03, Section 3.13(c) or Section 10.01 of this Agreement, and as confirmed by a certification of a Servicing Officer to the Trustee, an amount equal to the sum of (i) 100% of the Stated Principal Balance thereof as of the date of purchase (or such other price as provided in Section 10.01), (ii) in the case of (x) a Mortgage Loan, accrued interest on such Stated Principal Balance at the applicable Net Mortgage Rate in effect from time to time from the Due Date as to which interest was last covered by a payment by the Mortgagor or a P&I Advance by the Servicer, which payment or P&I Advance had as of the date of purchase been distributed pursuant to Section 5.01, through the end
of the calendar month in which the purchase is to be effected and (y) an REO Property, the sum of (1) accrued interest on such Stated Principal Balance at the applicable Net Mortgage Rate in effect from time to time from the Due Date as to which interest was last covered by a payment by the Mortgagor or a P&I Advance by the Servicer through the end of the calendar month immediately preceding the calendar month in which such REO Property was acquired, plus (2) REO Imputed Interest for such REO Property for each calendar month commencing with the calendar month in which such REO Property was acquired and ending with the calendar month in which such purchase is to be effected, net of the total of all net rental income, Insurance Proceeds, Liquidation Proceeds and P&I Advances that as of the date of purchase had been distributed as or to cover REO Imputed Interest pursuant to Section 5.01, (iii) any unreimbursed Servicing Advances and P&I Advances (including
Nonrecoverable P&I Advances and Nonrecoverable Servicing Advances) and any unpaid Servicing Fees allocable to such Mortgage Loan or REO Property, (iv) any amounts previously withdrawn from the Collection Account pursuant to Section 3.09(a)(ix) and Section 3.13(b) and (v) in the case of a Mortgage Loan required to be purchased pursuant to Section 2.03, expenses reasonably incurred or to be incurred by the Servicer or the Trustee in respect of the breach or defect giving rise to the purchase obligation and any costs and damages incurred by the Trust Fund and the Trustee in connection with any violation by any such Mortgage Loan of any predatory or abusive lending law.

 

 

“QIB”: As defined in Section 6.01(c).

“Qualified Substitute Mortgage Loan”: A mortgage loan substituted for a Deleted Mortgage Loan pursuant to the terms of this Agreement which must, on the date of such substitution, (i) have an outstanding principal balance, after application of all scheduled payments of principal and interest due during or prior to the month of substitution, not in excess of the Scheduled Principal Balance of the Deleted Mortgage Loan as of the Due Date in the calendar month during which the substitution occurs, (ii) have a Mortgage Rate not less than (and not more than one percentage point in excess of) the Mortgage Rate of the Deleted Mortgage Loan, (iii) if the mortgage loan is an Adjustable Rate Mortgage Loan, have a Maximum Mortgage Rate not less than the Maximum Mortgage Rate on the Deleted Mortgage Loan, (iv) if the mortgage loan is an
Adjustable Rate Mortgage Loan, have a Minimum Mortgage Rate not less than the Minimum Mortgage Rate of the Deleted Mortgage Loan, (v) if the mortgage loan is an Adjustable Rate Mortgage Loan, have a Gross Margin equal to the Gross Margin of the Deleted Mortgage Loan, (vi) if the mortgage loan is an Adjustable Rate Mortgage Loan, have a next Adjustment Date not more than two months later than the next Adjustment Date on the Deleted Mortgage Loan, (vii) have a remaining term to maturity not greater than (and not more than one year less than) that of the Deleted Mortgage Loan, (viii) have the same Due Date as the Due Date on the Deleted Mortgage Loan, (ix) have a Loan-to-Value Ratio as of the date of substitution equal to or lower than the Loan-to-Value Ratio of the Deleted Mortgage Loan as of such date, (x) be secured by the same lien priority on the related Mortgaged Property as the Deleted Loan, (xi) have a credit grade at least equal to the credit grading assigned on the Deleted
Mortgage Loan, (xii) be a “qualified mortgage” as defined in the REMIC Provisions and (xiii) conform to each representation and warranty set forth in Section 6 of the Mortgage Loan Purchase Agreement applicable to the Deleted Mortgage Loan.  In the event that one or more mortgage loans are substituted for one or more Deleted Mortgage Loans, the amounts described in clause (i) hereof shall be determined on the basis of aggregate principal balances, the Mortgage Rates described in clause (ii) hereof shall be determined on the basis of weighted average Mortgage Rates, the terms described in clause (vii) hereof shall be determined on the basis of weighted average remaining term to maturity, the Loan-to-Value Ratios described in clause (ix) hereof shall be satisfied as to each such mortgage loan, the credit grades described in clause (x) hereof shall be satisfied as to each such mortgage loan and, except to the extent otherwise provided in this sentence, the representations
and warranties described in clause (xii) hereof must be satisfied as to each Qualified Substitute Mortgage Loan or in the aggregate, as the case may be.

“Rate/Term Refinancing”: A Refinanced Mortgage Loan, the proceeds of which are not more than a nominal amount in excess of the existing first mortgage loan and any subordinate mortgage loan on the related Mortgaged Property and related closing costs, and were used exclusively (except for such nominal amount) to satisfy the then existing first mortgage loan and any subordinate mortgage loan of the Mortgagor on the related Mortgaged Property and to pay related closing costs.

“Rating Agency or Rating Agencies”:  Moody’s and S&P or their successors. If such agencies or their successors are no longer in existence, “Rating Agencies” shall be such nationally recognized statistical rating agencies, or other comparable Persons, designated by the Depositor, notice of which designation shall be given to the Trustee and the Servicer.

 

 

“Realized Loss”: With respect to each Mortgage Loan as to which a Final Recovery Determination has been made, an amount (not less than zero), as reported by the Servicer to the Master Servicer (in substantially the form of Schedule 4 hereto) equal to (i) the unpaid principal balance of such Mortgage Loan as of the commencement of the calendar month in which the Final Recovery Determination was made, plus (ii) accrued interest from the Due Date as to which interest was last paid by the Mortgagor through the end of the calendar month in which such Final Recovery Determination was made, calculated in the case of each calendar month during such period (A) at an annual rate equal to the annual rate at which interest was then accruing on such Mortgage Loan and (B) on a principal amount equal to the Stated Principal Balance of such Mortgage
Loan as of the close of business on the Distribution Date during such calendar month, plus (iii) any amounts previously withdrawn from the Collection Account in respect of such Mortgage Loan pursuant to Section 3.09(a)(ix) and Section 3.13(b) of this Agreement, minus (iv) the proceeds, if any, received in respect of such Mortgage Loan during the calendar month in which such Final Recovery Determination was made, net of amounts that are payable therefrom to the Servicer with respect to such Mortgage Loan pursuant to Section 3.09(a)(iii) of this Agreement.

With respect to any REO Property as to which a Final Recovery Determination has been made, an amount (not less than zero) equal to (i) the unpaid principal balance of the related Mortgage Loan as of the date of acquisition of such REO Property on behalf of REMIC I, plus (ii) accrued interest from the Due Date as to which interest was last paid by the Mortgagor in respect of the related Mortgage Loan through the end of the calendar month immediately preceding the calendar month in which such REO Property was acquired, calculated in the case of each calendar month during such period (A) at an annual rate equal to the annual rate at which interest was then accruing on the related Mortgage Loan and (B) on a principal amount equal to the Stated Principal Balance of the related Mortgage Loan as of the close of business on the Distribution Date during such calendar month, plus (iii) REO Imputed
Interest for such REO Property for each calendar month commencing with the calendar month in which such REO Property was acquired and ending with the calendar month in which such Final Recovery Determination was made, plus (iv) any amounts previously withdrawn from the Collection Account in respect of the related Mortgage Loan pursuant to Section 3.09(a)(ix) and Section 3.13(b) of this Agreement, minus (v) the aggregate of all P&I Advances and Servicing Advances (in the case of Servicing Advances, without duplication of amounts netted out of the rental income, Insurance Proceeds and Liquidation Proceeds described in clause (vi) below) made by the Servicer in respect of such REO Property or the related Mortgage Loan for which the Servicer has been or, in connection with such Final Recovery Determination, will be reimbursed pursuant to Section 3.21 of this Agreement out of rental income, Insurance Proceeds and Liquidation Proceeds received in respect of such REO
Property, minus (vi) the total of all net rental income, Insurance Proceeds and Liquidation Proceeds received in respect of such REO Property that has been, or in connection with such Final Recovery Determination, will be transferred to the Distribution Account pursuant to Section 3.21 of this Agreement.

With respect to each Mortgage Loan which has become the subject of a Deficient Valuation, the difference between the principal balance of the Mortgage Loan outstanding immediately prior to such Deficient Valuation and the principal balance of the Mortgage Loan as reduced by the Deficient Valuation.

 

 

With respect to each Mortgage Loan which has become the subject of a Debt Service Reduction, the portion, if any, of the reduction in each affected Monthly Payment attributable to a reduction in the Mortgage Rate imposed by a court of competent jurisdiction. Each such Realized Loss shall be deemed to have been incurred on the Due Date for each affected Monthly Payment.

To the extent the Servicer receives Subsequent Recoveries, with respect to any Mortgage Loan, the amount of Realized Loss with respect to that Mortgage Loan will be reduced to the extent such recoveries are applied to reduce the Certificate Principal Balance of any Class of Certificates on any Distribution Date.

“Record Date”: With respect to each Distribution Date and the Class A Certificates, the Mezzanine Certificates and the Class B Certificates, the Business Day immediately preceding such Distribution Date for so long as such Certificates are Book-Entry Certificates. With respect to each Distribution Date and any other Class of Certificates, including any Definitive Certificates, the last day of the calendar month immediately preceding the month in which such Distribution Date occurs.

“Reference Banks”: Barclays Bank PLC, The Tokyo Mitsubishi Bank and National Westminster Bank PLC and their successors in interest; provided, however, that if any of the foregoing banks are not suitable to serve as a Reference Bank, then any leading banks selected by the Securities Administrator which are engaged in transactions in Eurodollar deposits in the International Eurocurrency market (i) with an established place of business in London, (ii) not controlling, under the control of or under common control with the Depositor or any Affiliate thereof and (iii) which have been designated as such by the Securities Administrator.

“Refinanced Mortgage Loan”: A Mortgage Loan the proceeds of which were not used to purchase the related Mortgaged Property.

“Regular Certificate”: Any Class A Certificate, Mezzanine Certificate, Class B Certificate, Class CE Certificate or Class P Certificate.

“Regular Interest”: A “regular interest” in a REMIC within the meaning of Section 860G(a)(1) of the Code.

“Regulation S Permanent Global Certificate”: As defined in Section 6.01(c).

“Regulation S Temporary Global Certificate”: As defined in Section 6.01(c).

“Release Date”:  The 40th day after the later of (i) commencement of the offering of the Class B Certificates and (ii) the Closing Date.

“Relief Act”: The Servicemembers Civil Relief Act, as amended, or similar state or local laws.

“Relief Act Interest Shortfall”: With respect to any Distribution Date and any Mortgage Loan, any reduction in the amount of interest collectible on such Mortgage Loan for the most recently ended Due Period as a result of the application of the Relief Act.  

 

 

“REMIC”: A “real estate mortgage investment conduit” within the meaning of Section 860D of the Code.

“REMIC I”: The segregated pool of assets subject hereto, constituting the primary trust created hereby and to be administered hereunder, with respect to which a REMIC election is to be made, consisting of: (i) such Mortgage Loans and Prepayment Charges as from time to time are subject to this Agreement, together with the Mortgage Files relating thereto, and together with all collections thereon and proceeds thereof; (ii) any REO Property, together with all collections thereon and proceeds thereof; (iii) the Trustee’s rights with respect to the Mortgage Loans under all insurance policies required to be maintained pursuant to this Agreement and any proceeds thereof; (iv) the Depositor’s rights under the Mortgage Loan Purchase Agreement (including any security interest created thereby) and (v) the Collection Account, the
Distribution Account and any REO Account, and such assets that are deposited therein from time to time and any investments thereof, together with any and all income, proceeds and payments with respect thereto. Notwithstanding the foregoing, however, REMIC I specifically excludes (i) all payments and other collections of principal and interest due on the Mortgage Loans on or before the Cut-off Date and all Prepayment Charges payable in connection with Principal Prepayments made before the Cut-off Date; (ii) the Reserve Fund and any amounts on deposit therein from time to time and any proceeds thereof, (iii) the Swap Agreement and (iv) the Supplemental Interest Trust.

“REMIC I Group IA Regular Interests”: REMIC I Regular Interest A-I and REMIC I Regular Interest I-1-A through REMIC I Regular Interest I-42-B as designated in the Preliminary Statement hereto.

“REMIC I Group IB Regular Interests”:  REMIC I Regular Interest A-II and REMIC I Regular Interest II-1-A through REMIC I Regular Interest II-42-B as designated in the Preliminary Statement hereto.

“REMIC I Group II Regular Interests”:  REMIC I Regular Interest A-III and REMIC I Regular Interest III-1-A through REMIC I Regular Interest III-42-B as designated in the Preliminary Statement hereto.

“REMIC I Regular Interest”:  Any of the 256 separate non-certificated beneficial ownership interests in REMIC I issued hereunder and designated as a “regular interest” in REMIC I. Each REMIC I Regular Interest shall accrue interest at the related REMIC I Remittance Rate in effect from time to time, and shall be entitled to distributions of principal, subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Balance as set forth in the Preliminary Statement hereto. 

“REMIC I Remittance Rate”:  With respect to REMIC I Regular Interest A-I, a per annum rate equal to the weighted average of the Net Mortgage Rates of the Group IA Mortgage Loans. With respect to each REMIC I Group IA Regular Interest ending with the designation “A”, a per annum rate equal to the weighted average of the Net Mortgage Rates of the Group IA Mortgage Loans multiplied by 2, subject to a maximum rate of 9.12%. With respect to each REMIC I Group IA Regular Interest ending with the designation “B”, the greater of (x) a per annum rate equal to the excess, if any, of (i) 2 multiplied by the weighted average of 

 

the Net Mortgage Rates of the Group IA Mortgage Loans over (ii) 9.12% and (y) 0.00%. With respect to REMIC I Regular Interest A-II, a per annum rate equal to the weighted average of the Net Mortgage Rates of the Group IB Mortgage Loans. With respect to each REMIC I Group IB Regular Interest ending with the designation “A”, a per annum rate equal to the weighted average of the Net Mortgage Rates of the Group IB Mortgage Loans multiplied by 2, subject to a maximum rate of 9.12%. With respect to each REMIC I Group IB Regular Interest ending with the designation “B”, the greater of (x) a per annum rate equal to the excess, if any, of (i) 2 multiplied by the weighted average of the Net Mortgage Rates of the Group IB Mortgage Loans over (ii) 9.12% and (y) 0.00%.  With respect to REMIC I Regular Interest A-III, a per annum rate equal to the weighted average of the Net Mortgage Rates of the
Group II Mortgage Loans. With respect to each REMIC I Group II Regular Interest ending with the designation “A”, a per annum rate equal to the weighted average of the Net Mortgage Rates of the Group II Mortgage Loans multiplied by 2, subject to a maximum rate of 9.12%. With respect to each REMIC I Group II Regular Interest ending with the designation “B”, the greater of (x) a per annum rate equal to the excess, if any, of (i) 2 multiplied by the weighted average of the Net Mortgage Rates of the Group II Mortgage Loans over (ii) 9.12% and (y) 0.00%. With respect to REMIC I Regular Interest P, 0.00%.

“REMIC II”: The segregated pool of assets consisting of all of the REMIC I Regular Interests conveyed in trust to the Trustee, for the benefit of the REMIC II Regular Interests pursuant to Section 2.07, and all amounts deposited therein, with respect to which a separate REMIC election is to be made.

“REMIC II Interest Loss Allocation Amount”: With respect to any Distribution Date, an amount equal to (a) the product of (i) 50% of the aggregate Stated Principal Balance of the Mortgage Loans and REO Properties then outstanding and (ii) the REMIC II Remittance Rate for REMIC II Regular Interest AA minus the Marker Rate, divided by (b) 12.

“REMIC II Marker Allocation Percentage”: 50% of any amount payable or loss attributable from the Mortgage Loans, which shall be allocated to REMIC II Regular Interest AA, REMIC II Regular Interest A-1A, REMIC II Regular Interest A-1B1, REMIC II Regular Interest A-1B2, REMIC II Regular Interest A-2A, REMIC II Regular Interest A-2B, REMIC II Regular Interest A-2C, REMIC II Regular Interest A-2D, REMIC II Regular Interest M-1, REMIC II Regular Interest M-2, REMIC II Regular Interest M-3, REMIC II Regular Interest M-4, REMIC II Regular Interest M-5, REMIC II Regular Interest M-6, REMIC II Regular Interest B-1, REMIC II Regular Interest B-2, REMIC II Regular Interest B-3, REMIC II Regular Interest B-4, REMIC II Regular Interest B-5, REMIC II Regular Interest ZZ and REMIC II Regular Interest P.

“REMIC II Overcollateralization Amount”: With respect to any date of determination, (i) 0.50% of the aggregate Uncertificated Balances of the REMIC II Regular Interests minus (ii) the aggregate of the Uncertificated Balances of REMIC II Regular Interest A-1A, REMIC II Regular Interest A-1B1, REMIC II Regular Interest A-1B2, REMIC II Regular Interest A-2A, REMIC II Regular Interest A-2B, REMIC II Regular Interest A-2C, REMIC II Regular Interest A-2D, REMIC II Regular Interest M-1, REMIC II Regular Interest M-2, REMIC II Regular Interest M-3, REMIC II Regular Interest M-4, REMIC II Regular Interest M-5, REMIC II Regular Interest M-6, REMIC II Regular Interest B-1, REMIC II Regular Interest 

 

B-2, REMIC II Regular Interest B-3, REMIC II Regular Interest B-4, REMIC II Regular Interest B-5 and REMIC II Regular Interest P, in each case as of such date of determination.

“REMIC II Principal Loss Allocation Amount”: With respect to any Distribution Date, an amount equal to (a) the product of (i) 50% of the aggregate Stated Principal Balance of the Mortgage Loans and REO Properties then outstanding and (ii) 1 minus a fraction, the numerator of which is two times the aggregate of the Uncertificated Balances of REMIC II Regular Interest A-1A, REMIC II Regular Interest A-1B1, REMIC II Regular Interest A-1B2, REMIC II Regular Interest A-2A, REMIC II Regular Interest A-2B, REMIC II Regular Interest A-2C, REMIC II Regular Interest A-2D, REMIC II Regular Interest M-1, REMIC II Regular Interest M-2, REMIC II Regular Interest M-3, REMIC II Regular Interest M-4, REMIC II Regular Interest M-5, REMIC II Regular Interest M-6, REMIC II Regular Interest B-1, REMIC II Regular Interest B-2, REMIC II Regular Interest
B-3, REMIC II Regular Interest B-4, REMIC II Regular Interest B-5 and the denominator of which is the aggregate of the Uncertificated Balances of REMIC II Regular Interest A-1A, REMIC II Regular Interest A-1B1, REMIC II Regular Interest A-1B2, REMIC II Regular Interest A-2A, REMIC II Regular Interest A-2B, REMIC II Regular Interest A-2C, REMIC II Regular Interest A-2D, REMIC II Regular Interest M-1, REMIC II Regular Interest M-2, REMIC II Regular Interest M-3, REMIC II Regular Interest M-4, REMIC II Regular Interest M-5, REMIC II Regular Interest M-6, REMIC II Regular Interest B-1, REMIC II Regular Interest B-2, REMIC II Regular Interest B-3, REMIC II Regular Interest B-4, REMIC II Regular Interest B-5 and REMIC II Regular Interest ZZ.

“REMIC II Regular Interest”: Any of the separate non-certificated beneficial ownership interests in REMIC II issued hereunder and designated as a “regular interest” in REMIC II. Each REMIC II Regular Interest shall accrue interest at the related REMIC II Remittance Rate in effect from time to time, and shall be entitled to distributions of principal, subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Balance as set forth in the Preliminary Statement hereto. The designations for the respective REMIC II Regular Interests are set forth in the Preliminary Statement hereto.

“REMIC II Regular Interest AA”: One of the separate non-certificated beneficial ownership interests in REMIC II issued hereunder and designated as a Regular Interest in REMIC II.  REMIC II Regular Interest AA shall accrue interest at the related REMIC II Remittance Rate in effect from time to time, and shall be entitled to distributions of principal, subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

“REMIC II Regular Interest A-1A”: One of the separate non-certificated beneficial ownership interests in REMIC II issued hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular Interest A-1A shall accrue interest at the related REMIC II Remittance Rate in effect from time to time, and shall be entitled to distributions of principal, subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

“REMIC II Regular Interest A-1B1”: One of the separate non-certificated beneficial ownership interests in REMIC II issued hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular Interest A-1B1 shall accrue interest at the related REMIC II 

 

Remittance Rate in effect from time to time, and shall be entitled to distributions of principal, subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

“REMIC II Regular Interest A-1B2”: One of the separate non-certificated beneficial ownership interests in REMIC II issued hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular Interest A-1B2 shall accrue interest at the related REMIC II Remittance Rate in effect from time to time, and shall be entitled to distributions of principal, subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

“REMIC II Regular Interest A-2A”: One of the separate non-certificated beneficial ownership interests in REMIC II issued hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular Interest A-2A shall accrue interest at the related REMIC II Remittance Rate in effect from time to time, and shall be entitled to distributions of principal, subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

“REMIC II Regular Interest A-2B”: One of the separate non-certificated beneficial ownership interests in REMIC II issued hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular Interest A-2B shall accrue interest at the related REMIC II Remittance Rate in effect from time to time, and shall be entitled to distributions of principal, subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

“REMIC II Regular Interest A-2C”: One of the separate non-certificated beneficial ownership interests in REMIC II issued hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular Interest A-2C shall accrue interest at the related REMIC II Remittance Rate in effect from time to time, and shall be entitled to distributions of principal, subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

“REMIC II Regular Interest A-2D”: One of the separate non-certificated beneficial ownership interests in REMIC II issued hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular Interest A-2D shall accrue interest at the related REMIC II Remittance Rate in effect from time to time, and shall be entitled to distributions of principal, subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

“REMIC II Regular Interest B-1”: One of the separate non-certificated beneficial ownership interests in REMIC II issued hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular Interest B-1 shall accrue interest at the related REMIC II Remittance Rate in effect from time to time, and shall be entitled to distributions of principal, subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

 

 

“REMIC II Regular Interest B-2”: One of the separate non-certificated beneficial ownership interests in REMIC II issued hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular Interest B-2 shall accrue interest at the related REMIC II Remittance Rate in effect from time to time, and shall be entitled to distributions of principal, subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

“REMIC II Regular Interest B-3”: One of the separate non-certificated beneficial ownership interests in REMIC II issued hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular Interest B-3 shall accrue interest at the related REMIC II Remittance Rate in effect from time to time, and shall be entitled to distributions of principal, subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

“REMIC II Regular Interest B-4”: One of the separate non-certificated beneficial ownership interests in REMIC II issued hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular Interest B-4 shall accrue interest at the related REMIC II Remittance Rate in effect from time to time, and shall be entitled to distributions of principal, subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

“REMIC II Regular Interest B-5”: One of the separate non-certificated beneficial ownership interests in REMIC II issued hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular Interest B-5 shall accrue interest at the related REMIC II Remittance Rate in effect from time to time, and shall be entitled to distributions of principal, subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

“REMIC II Regular Interest IO”: One of the separate non-certificated beneficial ownership interests in REMIC II issued hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular Interest IO shall accrue interest at the related REMIC II Remittance Rate in effect from time to time and shall not be entitled to distributions of principal. 

“REMIC II Regular Interest M-1”: One of the separate non-certificated beneficial ownership interests in REMIC II issued hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular Interest M-1 shall accrue interest at the related REMIC II Remittance Rate in effect from time to time, and shall be entitled to distributions of principal, subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

“REMIC II Regular Interest M-2”: One of the separate non-certificated beneficial ownership interests in REMIC II issued hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular Interest M-2 shall accrue interest at the related REMIC II Remittance Rate in effect from time to time, and shall be entitled to distributions of principal, subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

 

 

“REMIC II Regular Interest M-3”: One of the separate non-certificated beneficial ownership interests in REMIC II issued hereunder and designated as a Regular Interest in REMIC II.  REMIC II Regular Interest M-3 shall accrue interest at the related REMIC II Remittance Rate in effect from time to time, and shall be entitled to distributions of principal, subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

“REMIC II Regular Interest M-4”: One of the separate non-certificated beneficial ownership interests in REMIC II issued hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular Interest M-4 shall accrue interest at the related REMIC II Remittance Rate in effect from time to time, and shall be entitled to distributions of principal, subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

“REMIC II Regular Interest M-5”: One of the separate non-certificated beneficial ownership interests in REMIC I issued hereunder and designated as a Regular Interest in REMIC II.  REMIC II Regular Interest M-5 shall accrue interest at the related REMIC II Remittance Rate in effect from time to time, and shall be entitled to distributions of principal, subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

“REMIC II Regular Interest M-6”: One of the separate non-certificated beneficial ownership interests in REMIC II issued hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular Interest M-6 shall accrue interest at the related REMIC II Remittance Rate in effect from time to time, and shall be entitled to distributions of principal, subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

“REMIC II Regular Interest P”: One of the separate non-certificated beneficial ownership interests in REMIC II issued hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular Interest P shall accrue interest at the related REMIC II Remittance Rate in effect from time to time, and shall be entitled to distributions of principal, subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

“REMIC II Regular Interest XX”: One of the separate non-certificated beneficial ownership interests in REMIC II issued hereunder and designated as a Regular Interest in REMIC II.  REMIC II Regular Interest XX shall accrue interest at the related REMIC II Remittance Rate in effect from time to time, and shall be entitled to distributions of principal, subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

“REMIC II Regular Interest ZZ”: One of the separate non-certificated beneficial ownership interests in REMIC II issued hereunder and designated as a Regular Interest in REMIC II.  REMIC II Regular Interest ZZ shall accrue interest at the related REMIC II Remittance Rate in effect from time to time, and shall be entitled to distributions of principal, 

 

subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

“REMIC II Regular Interest IA-SUB”: One of the separate non-certificated beneficial ownership interests in REMIC II issued hereunder and designated as a Regular Interest in REMIC II.  REMIC II Regular Interest IA-SUB shall accrue interest at the related REMIC II Remittance Rate in effect from time to time, and shall be entitled to distributions of principal, subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

“REMIC II Regular Interest IA-GRP”: One of the separate non-certificated beneficial ownership interests in REMIC II issued hereunder and designated as a Regular Interest in REMIC II.  REMIC II Regular Interest IA-GRP shall accrue interest at the related REMIC II Remittance Rate in effect from time to time, and shall be entitled to distributions of principal, subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

“REMIC II Regular Interest IB-SUB”: One of the separate non-certificated beneficial ownership interests in REMIC II issued hereunder and designated as a Regular Interest in REMIC II.  REMIC II Regular Interest IB-SUB shall accrue interest at the related REMIC II Remittance Rate in effect from time to time, and shall be entitled to distributions of principal, subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

“REMIC II Regular Interest IB-GRP”: One of the separate non-certificated beneficial ownership interests in REMIC II issued hereunder and designated as a Regular Interest in REMIC II.  REMIC II Regular Interest IB-GRP shall accrue interest at the related REMIC II Remittance Rate in effect from time to time, and shall be entitled to distributions of principal, subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

“REMIC II Regular Interest II-SUB”: One of the separate non-certificated beneficial ownership interests in REMIC II issued hereunder and designated as a Regular Interest in REMIC II.  REMIC II Regular Interest II-SUB shall accrue interest at the related REMIC II Remittance Rate in effect from time to time, and shall be entitled to distributions of principal, subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

“REMIC II Regular Interest II-GRP”: One of the separate non-certificated beneficial ownership interests in REMIC II issued hereunder and designated as a Regular Interest in REMIC II.  REMIC II Regular Interest II-GRP shall accrue interest at the related REMIC II Remittance Rate in effect from time to time, and shall be entitled to distributions of principal, subject to the terms and conditions hereof, in an aggregate amount equal to its initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

“REMIC II Remittance Rate”:  With respect to REMIC II Regular Interest AA, REMIC II Regular Interest A-1A, REMIC II Regular Interest A-1B1, REMIC II Regular Interest 

 

A-1B2, REMIC II Regular Interest A-2A, REMIC II Regular Interest A-2B, REMIC II Regular Interest A-2C, REMIC II Regular Interest A-2D, REMIC II Regular Interest M-1, REMIC II Regular Interest M-2, REMIC II Regular Interest M-3, REMIC II Regular Interest M-4, REMIC II Regular Interest M-5, REMIC II Regular Interest M-6, REMIC II Regular Interest B-1, REMIC II Regular Interest B-2, REMIC II Regular Interest B-3, REMIC II Regular Interest B-4, REMIC II Regular Interest B-5, REMIC II Regular Interest ZZ, REMIC II Regular Interest IA-SUB, REMIC II Regular Interest IB-SUB, REMIC II Regular Interest II-SUB and REMIC II Regular Interest XX, a per annum rate (but not less than zero) equal to the weighted average of: (w) with respect to REMIC I Regular Interest A-I, REMIC I Regular Interest A-II and REMIC I Regular Interest A-III, the REMIC I Remittance Rate for each such REMIC I Regular Interest for each such
Distribution Date, (x) with respect to each REMIC I Regular Interest ending with the designation “B”, the weighted average of the REMIC I Remittance Rates for such REMIC I Regular Interests, weighted on the basis of the Uncertificated Balances of such REMIC I Regular Interests for each such Distribution Date and (y) with respect to REMIC I Regular Interests ending with the designation “A”, for each Distribution Date listed below, the weighted average of the rates listed below for each such REMIC I Regular Interest listed below, weighted on the basis of the Uncertificated Balances of each such REMIC I Regular Interest for each such Distribution Date:

	
            
Distribution Date
 
 	
            
REMIC I Regular Interest
 
 	
            
Rate
 
 
	
            1
 	
            I-1-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            2
 	
            I-2-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-2-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-2-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            3
 	
            I-3-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-3-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-3-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A and I-2-A
 	
            REMIC I Remittance Rate
 

 

 

 

 

	
             
 	
             
 	
             
 
	
             
 	
            II-1-A and II-2-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A and III-2-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            4
 	
            I-4-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-4-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-4-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-3-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-3-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-3-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            5
 	
            I-5-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-5-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-5-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-4-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-4-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-4-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            6
 	
            I-6-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-6-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-6-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-5-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-5-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-5-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            7
 	
            I-7-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-7-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 

 

 

 

 

	
             
 	
             
 	
             
 
	
             
 	
            III-7-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-6-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-6-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-6-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            8
 	
            I-8-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-8-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-8-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-7-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-7-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-7-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            9
 	
            I-9-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-9-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-9-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-8-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-8-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-8-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            10
 	
            I-10-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-10-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-10-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-9-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-9-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-9-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            11
 	
            I-11-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-11-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 

 

 

 

 

	
             
 	
             
 	
             
 
	
             
 	
            III-11-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-10-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-10-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-10-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            12
 	
            I-12-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-12-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-12-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-11-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-11-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-11-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            13
 	
            I-13-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-13-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-13-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-12-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-12-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-12-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            14
 	
            I-14-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-14-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-14-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-13-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-13-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-13-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            15
 	
            I-15-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 

 

 

 

 

	
             
 	
             
 	
             
 
	
             
 	
            II-15-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-15-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-14-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-14-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-14-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            16
 	
            I-16-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-16-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-16-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-15-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-15-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-15-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            17
 	
            I-17-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-17-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-17-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-16-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-16-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-16-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            18
 	
            I-18-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-18-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-18-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-17-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-17-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-17-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            19
 	
            I-19-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 

 

 

 

 

	
             
 	
             
 	
             
 
	
             
 	
            II-19-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-19-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-18-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-18-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-18-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            20
 	
            I-20-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-20-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-20-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-19-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-19-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-19-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            21
 	
            I-21-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-21-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-21-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-20-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-20-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-20-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            22
 	
            I-22-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-22-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-22-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-21-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-21-A
 	
            REMIC I Remittance Rate
 

 

 

 

 

	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-21-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            23
 	
            I-23-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-23-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-23-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-22-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-22-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-22-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            24
 	
            I-24-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-24-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-24-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-23-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-23-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-23-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            25
 	
            I-25-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-25-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-25-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-24-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-24-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-24-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            26
 	
            I-26-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-26-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-26-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-25-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-25-A
 	
            REMIC I Remittance Rate
 

 

 

 

 

	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-25-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            27
 	
            I-27-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-27-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-27-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-26-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-26-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-26-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            28
 	
            I-28-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-28-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-28-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-27-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-27-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-27-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            29
 	
            I-29-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-29-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-29-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-28-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-29-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-29-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            30
 	
            I-30-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-30-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 

 

 

 

 

	
             
 	
             
 	
             
 
	
             
 	
            III-30-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-29-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-29-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-29-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            31
 	
            I-31-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-31-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-31-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-30-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-30-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-30-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            32
 	
            I-32-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-32-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-32-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-31-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-31-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-31-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            33
 	
            I-33-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-33-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-33-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-32-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-32-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-32-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            34
 	
            I-34-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-34-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 

 

 

 

 

	
             
 	
             
 	
             
 
	
             
 	
            III-34-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-33-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-33-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-33-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            35
 	
            I-35-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-35-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-35-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-34-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-34-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-34-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            36
 	
            I-36-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-36-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-36-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-35-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-35-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-35-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            37
 	
            I-37-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-37-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-37-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-36-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-36-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-36-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            38
 	
            I-38-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 

 

 

 

 

	
             
 	
             
 	
             
 
	
             
 	
            II-38-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-38-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-37-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-37-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-37-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            39
 	
            I-39-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-39-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-39-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-38-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-38-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-38-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            40
 	
            I-40-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-40-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-40-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-39-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-39-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-39-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            41
 	
            I-41-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-41-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-41-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-40-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-40-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-40-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            42
 	
            I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 

 

 

 

 

	
             
 	
             
 	
             
 
	
             
 	
            II-42-A 
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-42-A 
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-41-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-41-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-41-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            thereafter
 	
            I-1-A through I-42-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-42-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-42-A
 	
            REMIC I Remittance Rate
 

 

With respect to REMIC II Regular Interest IA-GRP, a per annum rate (but not less than zero) equal to the weighted average of: (w) with respect to REMIC I Regular Interest A-I, the REMIC I Remittance Rate for such REMIC 1 Regular Interest for each such Distribution Date, (x) with respect to REMIC I Group IA Regular Interests ending with the designation “B”, the weighted average of the REMIC I Remittance Rates for such REMIC I Regular Interests, weighted on the basis of the Uncertificated Balances of each such REMIC I Regular Interest for each such Distribution Date and (y) with respect to REMIC I Group IA Regular Interests ending with the designation “A”, for each Distribution Date listed below, the weighted average of the rates listed below for such REMIC I Regular Interests listed below, weighted on the basis of the Uncertificated Balances of each such REMIC I Regular
Interest for each such Distribution Date:

	
            
Distribution Date
  
  	
            
REMIC I Regular Interest
  
  	
            
Rate
  
  
	
            1
 	
            I-1-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            2
 	
            I-2-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            3
 	
            I-3-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A and I-2-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            4
 	
            I-4-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-3-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            5
 	
            I-5-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-4-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            6
 	
            I-6-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 

 

 

 

 

	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-5-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            7
 	
            I-7-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-6-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            8
 	
            I-8-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-7-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            9
 	
            I-9-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-8-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            10
 	
            I-10-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-9-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            11
 	
            I-11-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-10-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            12
 	
            I-12-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-11-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            13
 	
            I-13-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-12-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            14
 	
            I-14-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-13-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            15
 	
            I-15-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-14-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            16
 	
            I-16-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-15-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            17
 	
            I-17-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-16-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            18
 	
            I-18-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-17-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            19
 	
            I-19-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-18-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 

 

 

 

 

	
            20
 	
            I-20-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-19-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            21
 	
            I-21-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-20-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            22
 	
            I-22-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-21-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            23
 	
            I-23-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-22-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            24
 	
            I-24-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-23-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            25
 	
            I-25-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-24-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            26
 	
            I-26-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-25-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            27
 	
            I-27-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-26-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            28
 	
            I-28-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-27-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            29
 	
            I-29-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-28-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            30
 	
            I-30-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-29-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            31
 	
            I-31-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-30-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            32
 	
            I-32-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-31-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            33
 	
            I-33-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 

 

 

 

 

	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-32-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            34
 	
            I-34-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-33-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            35
 	
            I-35-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-34-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            36
 	
            I-36-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-35-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            37
 	
            I-37-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-36-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            38
 	
            I-38-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-37-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            39
 	
            I-39-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-38-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            40
 	
            I-40-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-39-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            41
 	
            I-41-A through I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-40-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            42
 	
            I-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            I-1-A through I-41-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            thereafter
 	
            I-1-A through I-42-A
 	
            REMIC I Remittance Rate
 

 

With respect to REMIC II Regular Interest IB-GRP, a per annum rate (but not less than zero) equal to the weighted average of: (w) with respect to REMIC I Regular Interest A-II, the REMIC I Remittance Rate for such REMIC 1 Regular Interest for each such Distribution Date,  (x) with respect to REMIC I Group IB Regular Interests ending with the designation “B”, the weighted average of the REMIC I Remittance Rates for such REMIC I Regular Interests, weighted on the basis of the Uncertificated Balances of each such REMIC I Regular Interest for each such Distribution Date and (y) with respect to REMIC I Group IB Regular Interests ending with the designation “A”, for each Distribution Date listed below, the weighted average of the rates listed below for such REMIC I Regular Interests listed below, weighted on the basis of the Uncertificated Balances of each such REMIC I
Regular Interest for each such Distribution Date:

 

	
            
Distribution Date
  
  	
            
REMIC I Regular Interest
  
  	
            
Rate
  
  

	
            1
 	
            II-1-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            2
 	
            II-2-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            3
 	
            II-3-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A and II-2-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            4
 	
            II-4-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-3-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            5
 	
            II-5-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-4-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            6
 	
            II-6-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-5-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            7
 	
            II-7-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-6-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            8
 	
            II-8-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-7-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            9
 	
            II-9-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-8-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            10
 	
            II-10-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-9-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            11
 	
            II-11-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-10-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            12
 	
            II-12-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-11-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            13
 	
            II-13-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 

 

 

 

 

	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-12-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            14
 	
            II-14-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-13-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            15
 	
            II-15-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-14-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            16
 	
            II-16-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-15-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            17
 	
            II-17-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-16-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            18
 	
            II-18-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-17-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            19
 	
            II-19-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-18-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            20
 	
            II-20-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-19-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            21
 	
            II-21-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-20-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            22
 	
            II-22-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-21-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            23
 	
            II-23-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-22-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            24
 	
            II-24-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-23-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            25
 	
            II-25-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 

 

 

 

 

	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-24-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            26
 	
            II-26-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-25-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            27
 	
            II-27-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-26-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            28
 	
            II-28-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-27-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            29
 	
            II-29-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-28-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            30
 	
            II-30-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-29-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            31
 	
            II-31-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-30-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            32
 	
            II-32-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-31-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            33
 	
            II-33-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-32-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            34
 	
            II-34-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-33-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            35
 	
            II-35-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-34-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            36
 	
            II-36-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-35-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            37
 	
            II-37-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 

 

 

 

 

	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-36-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            38
 	
            II-38-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-37-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            39
 	
            II-39-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-38-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            40
 	
            II-40-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-39-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            41
 	
            II-41-A through II-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-40-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            42
 	
            II-42
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            II-1-A through II-41-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            thereafter
 	
            II-1-A through II-42-A
 	
            REMIC I Remittance Rate
 

 

With respect to REMIC II Regular Interest II-GRP, a per annum rate (but not less than zero) equal to the weighted average of: (w) with respect to REMIC I Regular Interest A-II, the REMIC I Remittance Rate for such REMIC 1 Regular Interest for each such Distribution Date,  (x) with respect to REMIC I Group II Regular Interests ending with the designation “B”, the weighted average of the REMIC I Remittance Rates for such REMIC I Regular Interests, weighted on the basis of the Uncertificated Balances of each such REMIC I Regular Interest for each such Distribution Date and (y) with respect to REMIC I Group II Regular Interests ending with the designation “A”, for each Distribution Date listed below, the weighted average of the rates listed below for such REMIC I Regular Interests listed below, weighted on the basis of the Uncertificated Balances of each such REMIC I
Regular Interest for each such Distribution Date:

	
            
Distribution Date
  
  	
            
REMIC I Regular Interest
  
  	
            
Rate
  
  
	
            1
 	
            III-1-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            2
 	
            III-2-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            3
 	
            III-3-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A and III-2-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 

 

 

 

 

	
            4
 	
            III-4-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-3-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            5
 	
            III-5-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-4-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            6
 	
            III-6-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-5-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            7
 	
            III-7-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-6-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            8
 	
            III-8-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-7-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            9
 	
            III-9-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-8-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            10
 	
            III-10-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-9-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            11
 	
            III-11-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-10-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            12
 	
            III-12-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-11-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            13
 	
            III-13-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-12-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            14
 	
            III-14-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-13-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            15
 	
            III-15-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-14-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            16
 	
            III-16-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 

 

 

 

 

	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-15-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            17
 	
            III-17-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-16-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            18
 	
            III-18-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-17-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            19
 	
            III-19-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-18-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            20
 	
            III-20-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-19-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            21
 	
            III-21-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-20-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            22
 	
            III-22-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-21-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            23
 	
            III-23-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-22-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            24
 	
            III-24-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-23-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            25
 	
            III-25-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-24-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            26
 	
            III-26-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-25-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            27
 	
            III-27-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-26-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            28
 	
            III-28-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 

 

 

 

 

	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-27-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            29
 	
            III-29-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-28-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            30
 	
            III-30-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-29-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            31
 	
            III-31-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-30-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            32
 	
            III-32-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-31-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            33
 	
            III-33-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-32-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            34
 	
            III-34-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-33-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            35
 	
            III-35-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-34-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            36
 	
            III-36-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-35-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            37
 	
            III-37-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-36-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            38
 	
            III-38-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-37-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            39
 	
            III-39-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-38-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            40
 	
            III-40-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 

 

 

 

 

	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-39-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            41
 	
            III-41-A through III-42-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-40-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            42
 	
            III-42
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
             
 	
            III-1-A through III-41-A
 	
            REMIC I Remittance Rate
 
	
             
 	
             
 	
             
 
	
            thereafter
 	
            III-1-A through III-42-A
 	
            REMIC I Remittance Rate
 

 

With respect to REMIC II Regular Interest IO, and (i) the first Distribution Date through the 42nd Distribution Date, the excess of (x) the weighted average of the REMIC I Remittance Rates for REMIC I Regular Interests including the designation “A”, over (y) 2 multiplied by Swap LIBOR. and (ii) thereafter, 0.00%.  With respect to REMIC II Regular Interest P, 0.00%.

“REMIC II Sub WAC Allocation Percentage”: 50% of any amount payable or loss attributable from the Mortgage Loans, which shall be allocated to REMIC II Regular Interest IA-SUB, REMIC II Regular Interest IA-GRP, REMIC II Regular Interest IB-SUB, REMIC II Regular Interest IB-GRP, REMIC II Regular Interest II-SUB, REMIC II Regular Interest II-GRP and REMIC II Regular Interest XX.

“REMIC II Subordinated Balance Ratio”: The ratio among the Uncertificated Balances of each REMIC II Regular Interest ending with the designation “SUB,”, equal to the ratio between, with respect to each such REMIC II Regular Interest, the excess of (x) the aggregate Stated Principal Balance of the Group IA Mortgage Loans, Group IB Mortgage Loans or Group II Mortgage Loans, as applicable over (y) the current Certificate Principal Balance of related Class A Certificates.

“REMIC II Required Overcollateralization Amount”: 0.50% of the Required Overcollateralization Amount.

“REMIC III”: The segregated pool of assets consisting of all of the REMIC II Regular Interests conveyed in trust to the Trustee, for the benefit of the REMIC III Certificateholders pursuant to Section 2.07, and all amounts deposited therein, with respect to which a separate REMIC election is to be made.

“REMIC III Certificate”: Any Regular Certificate (other than the Class B Certificates, Class CE Certificates and Class P Certificates) or Class R Certificate.

“REMIC III Certificateholder”: The Holder of any REMIC III Certificate.

“REMIC III Regular Interests”: Any Regular Certificate (other than the Class B Certificates, Class CE Certificates and Class P Certificates), Class B Interest, Class CE Interest, Class P Interest and REMIC III Regular Interest IO.

 

 

“REMIC IV”:  The segregated pool of assets consisting of the Class CE Interest conveyed in trust to the Trustee, for the benefit of the Holders of the Class CE Certificates and the Class R-X Certificate (in respect of the Class R-IV Interest), with respect to which a separate REMIC election is to be made.

“REMIC IV Certificate”:  Any Class CE Certificate or Class R-X Certificate (in respect of the Class R-IV Interest).

“REMIC V”:  The segregated pool of assets consisting of the Class P Interest conveyed in trust to the Trustee, for the benefit of the Holders of the Class P Certificates and the Class R-X Certificate (in respect of the Class R-V Interest), with respect to which a separate REMIC election is to be made.

“REMIC V Certificate”:  Any Class P Certificate or Class R-X Certificate (in respect of the Class R-5 Interest).  

“REMIC VI”:  The segregated pool of assets consisting of the REMIC III Regular Interest IO conveyed in trust to the Trustee, for the benefit of the Holders of Class IO Interest and the Class R-X Certificate (in respect of the Class R-VI Interest), with respect to which a separate REMIC election is to be made.  

“REMIC VI Interests”:  The Class IO Interest or Class R-X Certificate (in respect of the Class R-VI Interest).  

“REMIC VII”:  The segregated pool of assets consisting of the Class B-1 Interest conveyed in trust to the Trustee, for the benefit of the Holders of the Class B-1 Certificates and the Class R-X Certificate (in respect of the Class R-VII Interest), with respect to which a separate REMIC election is to be made.

“REMIC VII Certificate”:  Any Class B-1 Certificate or Class R-X Certificate (in respect of the Class R-VII Interest).

“REMIC VIII”:  The segregated pool of assets consisting of the Class B-2 Interest conveyed in trust to the Trustee, for the benefit of the Holders of the Class B-2 Certificates and the Class R-X Certificate (in respect of the Class R-VIII Interest), with respect to which a separate REMIC election is to be made.

“REMIC VIII Certificate”:  Any Class B-2 Certificate or Class R-X Certificate (in respect of the Class R-VIII Interest).

“REMIC IX”:  The segregated pool of assets consisting of the Class B-3 Interest conveyed in trust to the Trustee, for the benefit of the Holders of the Class B-3 Certificates and the Class R-X Certificate (in respect of the Class R-IX Interest), with respect to which a separate REMIC election is to be made.

“REMIC IX Certificate”:  Any Class B-3 Certificate or Class R-X Certificate (in respect of the Class R-IX Interest).

 

 

“REMIC X”:  The segregated pool of assets consisting of the Class B-4 Interest conveyed in trust to the Trustee, for the benefit of the Holders of the Class B-4 Certificates and the Class R-X Certificate (in respect of the Class R-X Interest), with respect to which a separate REMIC election is to be made.

“REMIC X Certificate”:  Any Class B-4 Certificate or Class R-X Certificate (in respect of the Class R-X Interest).

“REMIC XI”:  The segregated pool of assets consisting of the Class B-5 Interest conveyed in trust to the Trustee, for the benefit of the Holders of the Class B-5 Certificates and the Class R-X Certificate (in respect of the Class R-XI Interest), with respect to which a separate REMIC election is to be made.

“REMIC XI Certificate”:  Any Class B-5 Certificate or Class R-X Certificate (in respect of the Class R-XI Interest).

“REMIC Provisions”: Provisions of the federal income tax law relating to real estate mortgage investment conduits, which appear at Section 860A through 860G of the Code, and related provisions, and proposed, temporary and final regulations and published rulings, notices and announcements promulgated thereunder, as the foregoing may be in effect from time to time.

“REMIC Regular Interest”: Any REMIC I Regular Interest or REMIC II Regular Interest.

“REMIC Remittance Rate”: The REMIC I Remittance Rate or the REMIC II Remittance Rate.

“Remittance Report”: A report by the Servicer pursuant to Section 5.03(a) of this Agreement.

“Rents from Real Property”: With respect to any REO Property, gross income of the character described in Section 856(d) of the Code as being included in the term “rents from real property.”

“REO Account”: The account or accounts maintained, or caused to be maintained, by the Servicer in respect of an REO Property pursuant to Section 3.21 of this Agreement.

“REO Disposition”: The sale or other disposition of an REO Property on behalf of REMIC I.

“REO Imputed Interest”: As to any REO Property, for any calendar month during which such REO Property was at any time part of REMIC I, one month’s interest at the applicable Net Mortgage Rate on the Stated Principal Balance of such REO Property (or, in the case of the first such calendar month, of the related Mortgage Loan, if appropriate) as of the close of business on the Distribution Date in such calendar month.

 

 

“REO Principal Amortization”: With respect to any REO Property, for any calendar month, the excess, if any, of (a) the aggregate of all amounts received in respect of such REO Property during such calendar month, whether in the form of rental income, sale proceeds (including, without limitation, that portion of the Termination Price paid in connection with a purchase of all of the Mortgage Loans and REO Properties pursuant to Section 10.01 of this Agreement that is allocable to such REO Property) or otherwise, net of any portion of such amounts (i) payable in respect of the proper operation, management and maintenance of such REO Property or (ii) payable or reimbursable to the Servicer pursuant to Section 3.21(d) of this Agreement for unpaid Servicing Fees in respect of the related Mortgage Loan and unreimbursed Servicing
Advances and P&I Advances in respect of such REO Property or the related Mortgage Loan, over (b) the REO Imputed Interest in respect of such REO Property for such calendar month.

“REO Property”: A Mortgaged Property acquired by the Servicer or its nominee on behalf of REMIC I through foreclosure or deed-in-lieu of foreclosure, as described in Section 3.21 of this Agreement.

“Required Overcollateralization Amount”:  With respect to any Distribution Date (i) prior to the Stepdown Date, the product of (A) 3.55% and (B) the aggregate principal balance of the Mortgage Loans as of the Cut-off Date, (ii) on or after the Stepdown Date provided a Trigger Event is not in effect, the greater of (x) 7.10% of the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period and (y) an amount equal to the product of (A) 0.50% and (B) the aggregate principal balance of the Mortgage Loans as of the Cut-off Date, and (iii) on or after the Stepdown Date and a Trigger Event is in effect, the Required Overcollateralization Amount for the immediately preceding Distribution Date.  Notwithstanding the foregoing, on and after any Distribution Date following the reduction of the aggregate
Certificate Principal Balance of the Class A Certificates, Mezzanine Certificates and Class B Certificates to zero, the Required Overcollateralization Amount shall be zero.

“Reserve Fund”: A fund created pursuant to Section 3.24 which shall be an asset of the Trust Fund but which shall not be an asset of any Trust REMIC.

“Reserve Interest Rate”: With respect to any Interest Determination Date, the rate per annum that the Securities Administrator determines to be either (i) the arithmetic mean (rounded upwards if necessary to the nearest whole multiple of 1/16%) of the one-month U.S. dollar lending rates which New York City banks selected by the Securities Administrator, after consultation with the Depositor, are quoting on the relevant Interest Determination Date to the principal London offices of leading banks in the London interbank market or (ii) in the event that the Securities Administrator can determine no such arithmetic mean, the lowest one-month U.S. dollar lending rate which New York City banks selected by the Securities Administrator are quoting on such Interest Determination Date to leading European banks.

“Residential Dwelling”: Any one of the following: (i) a detached one-family dwelling, (ii) a detached two- to four-family dwelling, (iii) a one-family dwelling unit in a Fannie Mae eligible condominium project, (iv) a manufactured home, or (v) a detached one-family dwelling in a planned unit development, none of which is a co-operative or mobile home.

 

 

“Residual Certificate”:  Any one of the Class R Certificates or Class R-X Certificates.

“Residual Interest”: The sole class of “residual interests” in a REMIC within the meaning of Section 860G(a)(2) of the Code.

“Responsible Officer”: When used with respect to the Trustee, any officer of the Trustee having direct responsibility for the administration of this Agreement and, with respect to a particular matter, to whom such matter is referred because of such officer’s knowledge of and familiarity with the particular subject.

“Rule 144A”: As defined in Section 6.01(c).

“S&P”: Standard & Poor’s, a division of the McGraw-Hill Companies, Inc.

“Scheduled Principal Balance”: With respect to any Mortgage Loan: (a) as of the Cut-off Date, the outstanding principal balance of such Mortgage Loan as of such date, net of the principal portion of all unpaid Monthly Payments, if any, due on or before such date; (b) as of any Due Date subsequent to the Cut-off Date up to and including the Due Date in the calendar month in which a Liquidation Event occurs with respect to such Mortgage Loan, the Scheduled Principal Balance of such Mortgage Loan as of the Cut-off Date, minus the sum of (i) the principal portion of each Monthly Payment due on or before such Due Date but subsequent to the Cut-off Date, whether or not received, (ii) all Principal Prepayments received before such Due Date but after the Cut-off Date, (iii) the principal portion of all Liquidation Proceeds and Insurance
Proceeds received before such Due Date but after the Cut-off Date, net of any portion thereof that represents principal due (without regard to any acceleration of payments under the related Mortgage and Mortgage Note) on a Due Date occurring on or before the date on which such proceeds were received and (iv) any Realized Loss incurred with respect thereto as a result of a Deficient Valuation occurring before such Due Date, but only to the extent such Realized Loss represents a reduction in the portion of principal of such Mortgage Loan not yet due (without regard to any acceleration of payments under the related Mortgage and Mortgage Note) as of the date of such Deficient Valuation; and (c) as of any Due Date subsequent to the occurrence of a Liquidation Event with respect to such Mortgage Loan, zero. With respect to any REO Property: (a) as of any Due Date subsequent to the date of its acquisition on behalf of the Trust Fund up to and including the Due Date in the calendar month in
which a Liquidation Event occurs with respect to such REO Property, an amount (not less than zero) equal to the Scheduled Principal Balance of the related Mortgage Loan as of the Due Date in the calendar month in which such REO Property was acquired, minus the aggregate amount of REO Principal Amortization, if any, in respect of REO Property for all previously ended calendar months; and (b) as of any Due Date subsequent to the occurrence of a Liquidation Event with respect to such REO Property, zero.

“Securities Act”: The Securities Act of 1933, as amended.

“Securities Administrator”:  As of the Closing Date, Wells Fargo Bank, National Association and thereafter, its respective successors in interest that meet the qualifications of this 

 

Agreement. The Securities Administrator and the Master Servicer shall at all times be the same Person or Affiliates.

“Seller”: DB Structured Products, Inc. or its successor in interest, in its capacity as seller under the Mortgage Loan Purchase Agreement.

“Senior Interest Distribution Amount”: With respect to any Distribution Date, an amount equal to the sum of (i) the Interest Distribution Amount for such Distribution Date for the Class A Certificates and (ii) the Interest Carry Forward Amount, if any, for such Distribution Date for the Class A Certificates.

“Sequential Trigger Event”: A Sequential Trigger Event is in effect on any Distribution Date if, before the 25th Distribution Date, the aggregate amount of Realized Losses incurred since the Cut-off Date through the last day of the related Due Period (after giving effect to scheduled payments received or advanced on or before the related Determination Date and Principal Prepayments received during the related Prepayment Period) divided by the sum of the aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date exceeds 1.35%, or if, on or after the 25th Distribution Date, a Trigger Event is in effect.

“Servicer”: Litton Loan Servicing LP, or any successor thereto appointed hereunder in connection with the servicing and administration of the Mortgage Loans.

“Servicer Event of Default”: One or more of the events described in Section 8.01(a).

“Servicer Remittance Date”: With respect to any Distribution Date, the 10th day of the calendar month in which such Distribution Date occurs, or if such 10th day is not a Business Day, the Business Day immediately following such 10th day.

“Servicer Report”: A report (substantially in the form of Schedule 5 hereto or otherwise in form and substance acceptable to the Master Servicer and Securities Administrator) on an electronic data file or tape prepared by the Servicer pursuant to Section 5.03(a) of this Agreement with such additions, deletions and modifications as agreed to by the Master Servicer, the Securities Administrator and the Servicer.

“Servicing Advances”: The customary and reasonable “out-of-pocket” costs and expenses incurred on or after the Cut-off Date by the Servicer in connection with a default, delinquency or other unanticipated event by the Servicer in the performance of its servicing obligations, including, but not limited to, the cost of (i) the preservation, restoration and protection of a Mortgaged Property, (ii) any enforcement or judicial proceedings, including but not limited to foreclosures, in respect of a particular Mortgage Loan, including any expenses incurred in relation to any such proceedings that result from the Mortgage Loan being registered on the MERS® System, (iii) the management (including reasonable fees in connection therewith) and liquidation of any REO Property, (iv) the performance of its obligations under
Section 3.01, Section 3.07, Section 3.11, Section 3.13 and Section 3.21 of this Agreement and (v) obtaining any legal documentation required to be included in the Mortgage File and/or correcting any outstanding title issues (i.e., any lien or encumbrance on the Mortgaged Property that prevents the effective enforcement of the intended lien position) reasonably necessary for the Servicer to 

 

perform its obligations under this Agreement.  Servicing Advances also include any reasonable “out-of-pocket” cost and expenses (including legal fees) incurred by the Servicer in connection with executing and recording instruments of satisfaction, deeds of reconveyance or Assignments to the extent not recovered from the Mortgagor or otherwise payable under this Agreement.  The Servicer shall be required to make any Nonrecoverable Servicing Advances.

“Servicing Fee”: With respect to each Mortgage Loan and for any calendar month, an amount equal to one-twelfth of the product of the Servicing Fee Rate multiplied by the Scheduled Principal Balance of the Mortgage Loans as of the Due Date in the preceding calendar month. The Servicing Fee is payable solely from collections of interest on the Mortgage Loans.

“Servicing Fee Rate”:  0.50% per annum.

“Servicing Officer”: Any officer of the Servicer or the Master Servicer involved in, or responsible for, the administration and servicing of Mortgage Loans, whose name and specimen signature appear on a list of Servicing Officers furnished by the Servicer or the Master Servicer, to the Trustee, the Master Servicer (in the case of the Servicer), the Securities Administrator and the Depositor on the Closing Date, as such list may from time to time be amended.

“Servicing Rights Pledgee”  One or more lenders, selected by the Servicer, to which the Servicer will pledge and assign all of its right, title and interest in, to and under this Agreement, including JPMorgan Chase Bank, N.A., as the representative of certain lenders. 

“Single Certificate”:  With respect to any Class of Certificates (other than the Residual Certificates), a hypothetical Certificate of such Class evidencing a Percentage Interest for such Class corresponding to an initial Certificate Principal Balance of $1,000. With respect to the Residual Certificates, a hypothetical Certificate of such Class evidencing a 100% Percentage Interest in such Class.

“Startup Day”: With respect to each Trust REMIC, the day designated as such pursuant to Section 11.01(b) hereof.

“Stated Principal Balance”: With respect to any Mortgage Loan: (a) as of any date of determination up to but not including the Distribution Date on which the proceeds, if any, of a Liquidation Event with respect to such Mortgage Loan would be distributed, the Scheduled Principal Balance of such Mortgage Loan as of the Cut-off Date, as shown in the Mortgage Loan Schedule, minus the sum of (i) the principal portion of each Monthly Payment due on a Due Date subsequent to the Cut-off Date, to the extent received from the Mortgagor or advanced by the Servicer or a successor to the Servicer (including the Master Servicer) and distributed pursuant to Section 5.01 of this Agreement on or before such date of determination, (ii) all Principal Prepayments received after the Cut-off Date, to the extent distributed pursuant to
Section 5.01 of this Agreement on or before such date of determination, (iii) all Liquidation Proceeds and Insurance Proceeds applied by the Servicer as recoveries of principal in accordance with the provisions of Section 3.13 of this Agreement, to the extent distributed pursuant to Section 5.01 of this Agreement on or before such date of determination, and (iv) any Realized Loss incurred with respect thereto as a result of a Deficient Valuation made during or prior to the Prepayment Period 

 

for the most recent Distribution Date coinciding with or preceding such date of determination; and (b) as of any date of determination coinciding with or subsequent to the Distribution Date on which the proceeds, if any, of a Liquidation Event with respect to such Mortgage Loan would be distributed, zero. With respect to any REO Property: (a) as of any date of determination up to but not including the Distribution Date on which the proceeds, if any, of a Liquidation Event with respect to such REO Property would be distributed, an amount (not less than zero) equal to the Stated Principal Balance of the related Mortgage Loan as of the date on which such REO Property was acquired on behalf of REMIC I, minus the sum of (i) if such REO Property was acquired before the Distribution Date in any calendar month, the principal portion of the Monthly Payment due on the Due Date in the calendar month of acquisition,
to the extent advanced by the Servicer or a successor to the Servicer (including the Master Servicer) and distributed pursuant to Section 5.01 of this Agreement, on or before such date of determination and (ii) the aggregate amount of REO Principal Amortization in respect of such REO Property for all previously ended calendar months, to the extent distributed pursuant to Section 4.01 of this Agreement on or before such date of determination; and (b) as of any date of determination coinciding with or subsequent to the Distribution Date on which the proceeds, if any, of a Liquidation Event with respect to such REO Property would be distributed, zero.

“Stepdown Date”: The earlier to occur of (i) the later to occur of (a) the Distribution Date occurring in November 2008 and (b) the first Distribution Date on which the Credit Enhancement Percentage (calculated for this purpose only after taking into account distributions of principal on the Mortgage Loans, but prior to any distribution of the Principal Distribution Amount to the holders of the Certificates then entitled to distributions of principal on such Distribution Date), is greater than or equal to approximately 49.80% and (ii) the first Distribution Date on which the aggregate Certificate Principal Balance of the Class A Certificates has been reduced to zero.

“Subordinate Certificates”: Collectively, the Mezzanine Certificates, the Class B Certificates and the Class CE Certificates.

“Subsequent Recoveries”: As of any Distribution Date, amounts received during the related Prepayment Period by the Servicer specifically related to a defaulted Mortgage Loan or disposition of an REO Property prior to the related Prepayment Period that resulted in a Realized Loss, after the liquidation or disposition of such defaulted Mortgage Loan, net of any amounts reimbursable to the Servicer related to such Mortgage Loan or REO Property.

“Sub-Servicer”: Any Person with which the Servicer has entered into a Sub-Servicing Agreement and which meets the qualifications of a Sub-Servicer pursuant to Section 3.02 of this Agreement.

“Sub-Servicing Agreement”: The written contract between the Servicer and a Sub-Servicer relating to servicing and administration of certain Mortgage Loans as provided in Section 3.02 of this Agreement.

“Substitution Shortfall Amount”: As defined in Section 2.03.

 

 

“Supplemental Interest Trust”:  The corpus of a trust created pursuant to Section 5.07 of this Agreement and designated as the “Supplemental Interest Trust,” consisting of the Swap Agreement, the Class IO Interest and the right to receive payments in respect of the Class IO Distribution Amount.  For the avoidance of doubt, the Supplemental Interest Trust does not constitute a part of the Trust Fund.

“Swap Agreement”: The Interest Rate Swap Agreement, dated as of October 28, 2005, between HSBC Bank USA, National Association, as trustee on behalf of the Supplemental Interest Trust, and the Swap Provider, which agreement provides for Net Swap Payments and Swap Termination Payments to be paid, as provided therein, together with any schedules, confirmations or other agreements relating thereto.  The Trustee will provide a copy of the Swap Agreement to any Certificateholder upon request. 

“Swap LIBOR”:  LIBOR as determined pursuant to the Swap Agreement.

“Swap Notional Amount”: For each calculation period as defined in the Swap Agreement, the amount set forth below:

	
            From and including:
  	
            To but excluding:
  	
            Swap Notional Amount:
  
	
            10/25/2005
 	
            11/25/2005
 	
            $
 	
            679,384,598
 
	
            11/25/2005
 	
            12/25/2005
 	
            $
 	
            672,851,709
 
	
            12/25/2005
 	
            1/25/2006
 	
            $
 	
            665,130,733
 
	
            1/25/2006
 	
            2/25/2006
 	
            $
 	
            656,782,948
 
	
            2/25/2006
 	
            3/25/2006
 	
            $
 	
            640,969,406
 
	
            3/25/2006
 	
            4/25/2006
 	
            $
 	
            623,417,894
 
	
            4/25/2006
 	
            5/25/2006
 	
            $
 	
            604,206,342
 
	
            5/25/2006
 	
            6/25/2006
 	
            $
 	
            583,428,106
 
	
            6/25/2006
 	
            7/25/2006
 	
            $
 	
            561,207,497
 
	
            7/25/2006
 	
            8/25/2006
 	
            $
 	
            537,683,834
 
	
            8/25/2006
 	
            9/25/2006
 	
            $
 	
            515,147,936
 
	
            9/25/2006
 	
            10/25/2006
 	
            $
 	
            493,558,266
 
	
            10/25/2006
 	
            11/25/2006
 	
            $
 	
            472,875,036
 
	
            11/25/2006
 	
            12/25/2006
 	
            $
 	
            453,060,130
 
	
            12/25/2006
 	
            1/25/2007
 	
            $
 	
            434,077,042
 
	
            1/25/2007
 	
            2/25/2007
 	
            $
 	
            415,890,797
 
	
            2/25/2007
 	
            3/25/2007
 	
            $
 	
            398,467,898
 
	
            3/25/2007
 	
            4/25/2007
 	
            $
 	
            381,776,254
 
	
            4/25/2007
 	
            5/25/2007
 	
            $
 	
            365,785,125
 
	
            5/25/2007
 	
            6/25/2007
 	
            $
 	
            350,148,370
 
	
            6/25/2007
 	
            7/25/2007
 	
            $
 	
            334,873,784
 
	
            7/25/2007
 	
            8/25/2007
 	
            $
 	
            279,260,034
 
	
            8/25/2007
 	
            9/25/2007
 	
            $
 	
            233,147,677
 
	
            9/25/2007
 	
            10/25/2007
 	
            $
 	
            195,149,284
 
	
            10/25/2007
 	
            11/25/2007
 	
            $
 	
            53,672,064
 
	
            11/25/2007
 	
            12/25/2007
 	
            $
 	
            51,310,950
 
	
            12/25/2007
 	
            1/25/2008
 	
            $
 	
            49,056,017
 
	
            1/25/2008
 	
            2/25/2008
 	
            $
 	
            46,902,401
 

 

 

 

 

	
            2/25/2008
 	
            3/25/2008
 	
            $
 	
            44,845,463
 
	
            3/25/2008
 	
            4/25/2008
 	
            $
 	
            42,880,784
 
	
            4/25/2008
 	
            5/25/2008
 	
            $
 	
            41,004,145
 
	
            5/25/2008
 	
            6/25/2008
 	
            $
 	
            39,211,526
 
	
            6/25/2008
 	
            7/25/2008
 	
            $
 	
            37,499,092
 
	
            7/25/2008
 	
            8/25/2008
 	
            $
 	
            35,863,158
 
	
            8/25/2008
 	
            9/25/2008
 	
            $
 	
            34,283,350
 
	
            9/25/2008
 	
            10/25/2008
 	
            $
 	
            32,774,788
 
	
            10/25/2008
 	
            11/25/2008
 	
            $
 	
            11,608,709
 
	
            11/25/2008
 	
            12/25/2008
 	
            $
 	
            11,206,518
 
	
            12/25/2008
 	
            1/25/2009
 	
            $
 	
            10,818,262
 
	
            1/25/2009
 	
            2/25/2009
 	
            $
 	
            10,443,456
 
	
            2/25/2009
 	
            3/25/2009
 	
            $
 	
            10,081,636
 
	
            3/25/2009
 	
            4/25/2009
 	
            $
 	
            9,732,352
 

 

“Swap Provider”:  The swap provider under the Swap Agreement either (a) entitled to receive payments from the Supplemental Interest Trust or (b) required to make payments to the Supplemental Interest Trust, in either case pursuant to the terms of the Swap Agreement, and any successor in interest or assign.  Initially, the Swap Provider shall be The Royal Bank of Scotland plc.

“Swap Provider Trigger Event”:  A Swap Provider Trigger Event shall have occurred if any of the following has occurred: (i) an Event of Default under the Swap Agreement with respect to which the Swap Provider is a Defaulting Party (as defined in the Swap Agreement), (ii) a Termination Event under the Swap Agreement with respect to which the Swap Provider is the sole Affected Party (as defined in the Swap Agreement) or (iii) an Additional Termination Event under the Swap Agreement with respect to which the Swap Provider is the sole Affected Party.

“Swap Termination Payment”:  Upon the designation of an “Early Termination Date” as defined in the Swap Agreement, the payment to be made by the Supplemental Interest Trust to the Swap Provider, or by the Swap Provider to the Supplemental Interest Trust, as applicable, pursuant to the terms of the Swap Agreement.

“Tax Returns”: The federal income tax return on Internal Revenue Service Form 1066, U.S. Real Estate Mortgage Investment Conduit Income Tax Return, including Schedule Q thereto, Quarterly Notice to Residual Interest Holders of REMIC Taxable Income or Net Loss Allocation, or any successor forms, to be filed on behalf of the Trust REMICs under the REMIC Provisions, together with any and all other information reports or returns that may be required to be furnished to the Certificateholders or filed with the Internal Revenue Service or any other governmental taxing authority under any applicable provisions of federal, state or local tax laws.

“Telerate Page 3750”: The display designated as page “3750” on the Dow Jones Telerate Capital Markets Report (or such other page as may replace page 3750 on that report for the purpose of displaying London interbank offered rates of major banks).

 

 

“Termination Price”: As defined in Section 10.01.

“Transfer”: Any direct or indirect transfer, sale, pledge, hypothecation, or other form of assignment of any Ownership Interest in a Certificate.

“Transferee”: Any Person who is acquiring by Transfer any Ownership Interest in a Certificate.

“Transferor”: Any Person who is disposing by Transfer of any Ownership Interest in a Certificate.

“Trigger Event”: A Trigger Event has occurred with respect to a Distribution Date if either (x) the Delinquency Percentage exceeds 29.00% of the Credit Enhancement Percentage with respect to such Distribution Date or (y) the aggregate amount of Realized Losses incurred since the Cut-off Date through the last day of the related Due Period divided by the aggregate principal balance of the Mortgage Loans as of the Cut-off Date exceeds the applicable percentages set forth below with respect to such Distribution Date:

	
            Distribution Date 
 	
            Percentage
 
	
            November 2007 to October 2008
 	
            1.35% plus 1/12 of 1.70% for each month thereafter
 
	
            November 2008 to October 2009
 	
            3.05% plus 1/12 of 1.65% for each month thereafter
 
	
            November 2009 to October 2010
 	
            4.70% plus 1/12 of 1.05% for each month thereafter
 
	
            November 2010 to October 2011
 	
            5.75% plus 1/12 of 0.25% for each month thereafter
 
	
            November 2011 and thereafter
 	
            6.00%
 

 

“Trust”: ACE Securities Corp., Home Equity Loan Trust, Series 2005-AG1, the trust created hereunder.

“Trust Fund”: Collectively, all of the assets of REMIC I, REMIC II, REMIC III and the Reserve Fund and any amounts on deposit therein and any proceeds thereof.  For avoidance of doubt, the Trust Fund does not include the Supplemental Interest Trust.

“Trust REMIC”: REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V,  REMIC VI, REMIC VII, REMIC VIII, REMIC IX, REMIC X, or REMIC XI.

“Trustee”: HSBC Bank USA, National Association, a national banking association, or its successor in interest, or any successor trustee appointed as herein provided.

“Uncertificated Balance”: The amount of the REMIC Regular Interests outstanding as of any date of determination. As of the Closing Date, the Uncertificated Balance of each REMIC Regular Interest shall equal the amount set forth in the Preliminary Statement hereto as its initial uncertificated balance. On each Distribution Date, the Uncertificated Balance of the REMIC Regular Interest shall be reduced by all distributions of principal made on such REMIC Regular Interest on such Distribution Date pursuant to Section 5.01 and, if and to the extent necessary and appropriate, shall be further reduced on such Distribution Date by Realized Losses as provided in Section 5.04 and the Uncertificated Balance of REMIC II Regular Interest ZZ shall be increased by interest deferrals as provided in Section 5.01. The Uncertificated
Balance of each REMIC Regular Interest shall never be less than zero.

 

 

“Uncertificated Interest”: With respect to any REMIC Regular Interest for any Distribution Date, one month’s interest at the related REMIC Remittance Rate applicable to such REMIC Regular Interest for such Distribution Date, accrued on the Uncertificated Balance thereof immediately prior to such Distribution Date. Uncertificated Interest in respect of the REMIC Regular Interests shall accrue on the basis of a 360-day year consisting of twelve 30-day months. Uncertificated Interest with respect to each Distribution Date, as to any REMIC Regular Interest, shall be reduced by an amount equal to the sum of (a) the aggregate Prepayment Interest Shortfall, if any, for such Distribution Date to the extent not covered by payments pursuant to Section 3.22 or Section 4.18 of this Agreement and (b) the aggregate amount of any
Relief Act Interest Shortfall, if any allocated, in each case, to such REMIC Regular Interest or REMIC Regular Interest pursuant to Section 1.02. In addition, Uncertificated Interest with respect to each Distribution Date, as to any REMIC Regular Interest, shall be reduced by Realized Losses, if any, allocated to such REMIC Regular Interest pursuant to Section 1.02 and Section 5.04.

“Uncertificated Notional Amount”:  With respect to REMIC II Regular Interest IO and each Distribution Date listed below, the aggregate Uncertificated Balance of the REMIC I Regular Interests ending with the designation “A” listed below:

	
            
Distribution Date
  
  	
            
REMIC I Regular Interests
  
  
	
            1
 	
            I-1-A through I-42-A, II-1-A through II-42-A and III-1-A through III-42-A 
 
	
            2
 	
            I-2-A through I-42-A, II-2-A through II-42-A and III-2-A through III-42-A 
 
	
            3
 	
            I-3-A through I-42-A, II-3-A through II-42-A and III-3-A through III-42-A 
 
	
            4
 	
            I-4-A through I-42-A, II-4-A through II-42-A and III-4-A through III-42-A 
 
	
            5
 	
            I-5-A through I-42-A, II-5-A through II-42-A and III-5-A through III-42-A 
 
	
            6
 	
            I-6-A through I-42-A, II-6-A through II-42-A and III-6-A through III-42-A 
 
	
            7
 	
            I-7-A through I-42-A, II-7-A through II-42-A and III-7-A through III-42-A 
 
	
            8
 	
            I-8-A through I-42-A, II-8-A through II-42-A and III-8-A through III-42-A 
 
	
            9
 	
            I-9-A through I-42-A, II-9-A through II-42-A and III-9-A through III-42-A 
 
	
            10
 	
            I-10-A through I-42-A, II-10-A through II-42-A and III-10-A through III-42-A 
 
	
            11
 	
            I-11-A through I-42-A, II-11-A through II-42-A and III-11-A through III-42-A 
 
	
            12
 	
            I-12-A through I-42-A, II-12-A through II-42-A and III-12-A through III-42-A 
 
	
            13
 	
            I-13-A through I-42-A, II-13-A through II-42-A and III-13-A through III-42-A 
 
	
            14
 	
            I-14-A through I-42-A, II-14-A through II-42-A and III-14-A through III-42-A 
 
	
            15
 	
            I-15-A through I-42-A, II-15-A through II-42-A and III-15-A through III-42-A 
 
	
            16
 	
            I-16-A through I-42-A, II-16-A through II-42-A and III-16-A through III-42-A 
 
	
            17
 	
            I-17-A through I-42-A, II-17-A through II-42-A and III-17-A through III-42-A 
 
	
            18
 	
            I-18-A through I-42-A, II-18-A through II-42-A and III-18-A through III-42-A 
 
	
            19
 	
            I-19-A through I-42-A, II-19-A through II-42-A and III-19-A through III-42-A 
 
	
            20
 	
            I-20-A through I-42-A, II-20-A through II-42-A and III-20-A through III-42-A 
 
	
            21
 	
            I-21-A through I-42-A, II-21-A through II-42-A and III-21-A through III-42-A 
 
	
            22
 	
            I-22-A through I-42-A, II-22-A through II-42-A and III-22-A through III-42-A 
 
	
            23
 	
            I-23-A through I-42-A, II-23-A through II-42-A and III-23-A through III-42-A 
 
	
            24
 	
            I-24-A through I-42-A, II-24-A through II-42-A and III-24-A through III-42-A 
 
	
            25
 	
            I-25-A through I-42-A, II-25-A through II-42-A and III-25-A through III-42-A 
 
	
            26
 	
            I-26-A through I-42-A, II-26-A through II-42-A and III-26-A through III-42-A 
 
	
            27
 	
            I-27-A through I-42-A, II-27-A through II-42-A and III-27-A through III-42-A 
 
	
            28
 	
            I-28-A through I-42-A, II-28-A through II-42-A and III-28-A through III-42-A 
 

 

 

 

 

	
            29
 	
            I-29-A through I-42-A, II-29-A through II-42-A and III-29-A through III-42-A 
 
	
            30
 	
            I-30-A through I-42-A, II-30-A through II-42-A and III-30-A through III-42-A 
 
	
            31
 	
            I-31-A through I-42-A, II-31-A through II-42-A and III-31-A through III-42-A 
 
	
            32
 	
            I-32-A through I-42-A, II-32-A through II-42-A and III-32-A through III-42-A 
 
	
            33
 	
            I-33-A through I-42-A, II-33-A through II-42-A and III-33-A through III-42-A 
 
	
            34
 	
            I-34-A through I-42-A, II-34-A through II-42-A and III-34-A through III-42-A 
 
	
            35
 	
            I-35-A through I-42-A, II-35-A through II-42-A and III-35-A through III-42-A 
 
	
            36
 	
            I-36-A through I-42-A, II-36-A through II-42-A and III-36-A through III-42-A 
 
	
            37
 	
            I-37-A through I-42-A, II-37-A through II-42-A and III-37-A through III-42-A 
 
	
            38
 	
            I-38-A through I-42-A, II-38-A through II-42-A and III-38-A through III-42-A 
 
	
            39
 	
            I-39-A through I-42-A, II-39-A through II-42-A and III-39-A through III-42-A 
 
	
            40
 	
            I-40-A through I-42-A, II-40-A through II-42-A and III-40-A through III-42-A 
 
	
            41
 	
            I-41-A through I-42-A, II-41-A through II-42-A and III-41-A through III-42-A 
 
	
            42
 	
            I-42-A, II-42-A and III-42-A
 
	
            thereafter
 	
            $0.00
 

 

With respect to the REMIC III Regular Interest IO and any Distribution Date, an amount equal to the Uncertificated Notional Amount of the REMIC II Regular Interest IO.  With respect to the Class IO Interest and any Distribution Date, an amount equal to the Uncertificated Notional Amount of the REMIC III Regular Interest IO.

With respect to the Class CE Interest and any Distribution Date, the Uncertificated Balance of the REMIC II Regular Interests (other than REMIC II Regular Interest P) for such Distribution Date.  As of the Closing Date, the Uncertificated Notional Amount of the Class CE Interest is equal to $24,601,583.59.

“Uninsured Cause”: Any cause of damage to a Mortgaged Property such that the complete restoration of such property is not fully reimbursable by the hazard insurance policies required to be maintained pursuant to Section 3.11.

“United States Person”: A citizen or resident of the United States, a corporation, partnership or other entity created or organized in, or under the laws of, the United States or any political subdivision thereof (except, in the case of a partnership, to the extent provided in regulations) provided that, for purposes solely of the restrictions on the transfer of any Residual Certificate, no partnership or other entity treated as a partnership for United States federal income tax purposes shall be treated as a United States Person unless all persons that own an interest in such partnership either directly or through any entity that is not a corporation for United States federal income tax purposes are required to be United States Persons, or an estate whose income is subject to United States federal income tax regardless of its
source, or a trust if a court within the United States is able to exercise primary supervision over the administration of the trust and one or more United States persons have the authority to control all substantial decisions of the trust. To the extent prescribed in regulations by the Secretary of the Treasury, a trust which was in existence on August 20, 1996 (other than a trust treated as owned by the grantor under subpart E of part I of subchapter J of chapter I of the Code), and which was treated as a United States person on August 20, 1996 may elect to continue to be treated as a United 

 

States person notwithstanding the previous sentence. The term “United States” shall have the meaning set forth in Section 7701 of the Code.

“Value”: With respect to any Mortgaged Property, the lesser of (i) the lesser of (a) the value thereof as determined by an appraisal made for the Originator of the Mortgage Loan at the time of origination of the Mortgage Loan by an appraiser who met the minimum requirements of Fannie Mae and Freddie Mac and (b) the value thereof as determined by a review appraisal conducted by the Originator of the Mortgage Loan in accordance with the Originator’s underwriting guidelines, and (ii) the purchase price paid for the related Mortgaged Property by the Mortgagor with the proceeds of the Mortgage Loan; provided, however, (A) in the case of a Refinanced Mortgage Loan, such value of the Mortgaged Property is based solely upon the lesser of (1) the value determined by an appraisal made for the Originator of the Mortgage Loan of such
Refinanced Mortgage Loan at the time of origination of such Refinanced Mortgage Loan by an appraiser who met the minimum requirements of Fannie Mae and Freddie Mac and (2) the value thereof as determined by a review appraisal conducted by the Originator of the Mortgage Loan in accordance with the Originator’s underwriting guidelines, and (B) in the case of a Mortgage Loan originated in connection with a “lease-option purchase,” such value of the Mortgaged Property is based on the lower of the value determined by an appraisal made for the Originator at the time of origination or the sale price of such Mortgaged Property if the “lease option purchase price” was set less than 12 months prior to origination, and is based on the value determined by an appraisal made for the Originator of such Mortgage Loan at the time of origination if the “lease option purchase price” was set 12 months or more prior to origination.

“Verification Report”:  As defined in Section 4.19. 

“Voting Rights”: The portion of the voting rights of all of the Certificates which is allocated to any such Certificate. With respect to any date of determination, 98% of all Voting Rights will be allocated among the holders of the Class A Certificates, the Mezzanine Certificates and the Class CE Certificates in proportion to the then outstanding Certificate Principal Balances of their respective Certificates, 1% of all Voting Rights will be allocated among the holders of the Class P Certificates and 1% of all Voting Rights will be allocated among the holders of the Residual Certificates. The Voting Rights allocated to each Class of Certificate shall be allocated among Holders of each such Class in accordance with their respective Percentage Interests as of the most recent Record Date.

	
            SECTION 1.02.
 	
            Allocation of Certain Interest Shortfalls.
 

For purposes of calculating the amount of Accrued Certificate Interest and the amount of the Interest Distribution Amount for the Class A Certificates, the Mezzanine Certificates, the Class B Certificates and the Class CE Certificates for any Distribution Date, (1) the aggregate amount of any Prepayment Interest Shortfalls (to the extent not covered by payments by the Servicer pursuant to Section 3.22 of this Agreement or by the Master Servicer pursuant to Section 4.18 of this Agreement) and any Relief Act Interest Shortfalls incurred in respect of the Mortgage Loans for any Distribution Date shall be allocated first, to the Class CE Certificates, second, to the Class B-5 Certificates, third, to the Class B-4 Certificates, fourth, to the Class B-3 Certificates, fifth, to the Class B-2 Certificates, sixth, to the Class B-1 Certificates, seventh, to the Class M-6 Certificates,
eighth, to the Class M-5 Certificates, ninth, to the Class 

 

M-4 Certificates, tenth, to the Class M-3 Certificates, eleventh, to the Class M-2 Certificates, twelfth, to the Class M-1 Certificates and thirteenth, to the Class A Certificates, on a pro rata basis, in each case based on, and to the extent of, one month’s interest at the then applicable respective Pass-Through Rate on the respective Certificate Principal Balance or Notional Amount, as applicable, of each such Certificate and (2) the aggregate amount of any Realized Losses allocated to the Class B Certificates, the Mezzanine Certificates and Net WAC Rate Carryover Amounts paid to the Class A Certificates, the Mezzanine Certificates and the Class B Certificates incurred for any Distribution Date shall be allocated to the Class CE Certificates on a pro rata basis based on, and to the extent of, one
month’s interest at the then applicable respective Pass-Through Rate on the respective Certificate Principal Balance or Notional Amount thereof, as applicable.

For purposes of calculating the amount of Uncertificated Interest for the REMIC I Group IA Regular Interests for any Distribution Date, the aggregate amount of any Prepayment Interest Shortfalls (to the extent not covered by payments by the Servicer pursuant to Section 3.22 of this Agreement or the Master Servicer pursuant to Section 4.18 of this Agreement) and any Relief Act Interest Shortfalls incurred in respect of Group IA Mortgage Loans shall be allocated first, to REMIC I Regular Interest A-I and to the REMIC I Group IA Regular Interests ending with the designation “B”, pro rata based on, and to the extent of, one month’s interest at the then applicable respective REMIC I Remittance Rates on the respective Uncertificated Principal Balances of each such REMIC I Regular Interest, and then, to REMIC I Group IA
Regular Interests ending with the designation “A”, pro rata based on, and to the extent of, one month’s interest at the then applicable respective REMIC I Remittance Rates on the respective Uncertificated Balances of each such REMIC I Regular Interest.

For purposes of calculating the amount of Uncertificated Interest for the REMIC I Group IB Regular Interests for any Distribution Date, the aggregate amount of any Prepayment Interest Shortfalls (to the extent not covered by payments by the Servicer pursuant to Section 3.22 of this Agreement or the Master Servicer pursuant to Section 4.18 of this Agreement) and any Relief Act Interest Shortfalls incurred in respect of Group IB Mortgage Loans shall be allocated first, to REMIC I Regular Interest A-II and to the REMIC I Group IB Regular Interests ending with the designation “B”, pro rata based on, and to the extent of, one month’s interest at the then applicable respective REMIC I Remittance Rates on the respective Uncertificated Principal Balances of each such REMIC I Regular Interest , and then, to REMIC I Group IB
Regular Interests ending with the designation “A”, pro rata based on, and to the extent of, one month’s interest at the then applicable respective REMIC I Remittance Rates on the respective Uncertificated Balances of each such REMIC I Regular Interest. 

For purposes of calculating the amount of Uncertificated Interest for the REMIC I Group II Regular Interests for any Distribution Date, the aggregate amount of any Prepayment Interest Shortfalls (to the extent not covered by payments by the Servicer pursuant to Section 3.22 of this Agreement or the Master Servicer pursuant to Section 4.18 of this Agreement) and any Relief Act Interest Shortfalls incurred in respect of Group II Mortgage Loans shall be allocated first, to REMIC I Regular Interest A-III and to the REMIC I Group II Regular Interests ending with the designation “B”, pro rata based on, and to the extent of, one month’s interest at the then applicable respective REMIC I Remittance Rates on the respective Uncertificated Principal Balances of each such REMIC I Regular Interest , and then, to REMIC I 

 

Group II Regular Interests ending with the designation “A”, pro rata based on, and to the extent of, one month’s interest at the then applicable respective REMIC I Remittance Rates on the respective Uncertificated Balances of each such REMIC I Regular Interest. 

For purposes of calculating the amount of Uncertificated Interest for the REMIC II Regular Interests for any Distribution Date:

(A)       The REMIC II Marker Allocation Percentage of the aggregate amount of any Prepayment Interest Shortfalls (to the extent not covered by payments by the Servicer pursuant to Section 3.22 of this Agreement or the Master Servicer pursuant to Section 4.18 of this Agreement) and the REMIC II Marker Allocation Percentage of any Relief Act Interest Shortfalls incurred in respect of the Mortgage Loans for any Distribution Date shall be allocated among REMIC II Regular Interest AA, REMIC II Regular Interest A-1A, REMIC II Regular Interest A-1B1, REMIC II Regular Interest A-1B2, REMIC II Regular Interest A-2A, REMIC II Regular Interest A-2B, REMIC II Regular Interest A-2C, REMIC II Regular Interest A-2D, REMIC II Regular Interest M-1, REMIC II Regular Interest M-2, REMIC II Regular Interest M-3, REMIC II Regular Interest M-4,
REMIC II Regular Interest M-5, REMIC II Regular Interest M-6, REMIC II Regular Interest B-1, REMIC II Regular Interest B-2, REMIC II Regular Interest B-3, REMIC II Regular Interest B-4, REMIC II Regular Interest B-5 and REMIC II Regular Interest ZZ pro rata based on, and to the extent of, one month’s interest at the then applicable respective REMIC II Remittance Rate on the respective Uncertificated Balance of each such REMIC II Regular Interest; and

(B)        The REMIC II Sub WAC Allocation Percentage of the aggregate amount of any Prepayment Interest Shortfalls (to the extent not covered by payments by the Servicer pursuant to Section 3.22 of this Agreement or by the Master Servicer pursuant to Section 4.18 of this Agreement) and the REMIC II Sub WAC Allocation Percentage of any Relief Act Interest Shortfalls incurred in respect of the Mortgage Loans for any Distribution Date shall be allocated first, to Uncertificated Interest payable to REMIC II Regular Interest IA-SUB, REMIC II Regular Interest IA-GRP, REMIC II Regular Interest IB-SUB, REMIC II Regular Interest IB-GRP, REMIC II Regular Interest II-SUB, REMIC II Regular Interest II-GRP and REMIC II Regular Interest XX, pro rata based on, and to the extent of, one
month’s interest at the then applicable respective REMIC II Remittance Rate on the respective Uncertificated Balance of each such REMIC II Regular Interest.

 

 

ARTICLE II

 

CONVEYANCE OF MORTGAGE LOANS;

ORIGINAL ISSUANCE OF CERTIFICATES

	
            SECTION 2.01.
 	
            Conveyance of the Mortgage Loans.
 

The Depositor, concurrently with the execution and delivery hereof, does hereby transfer, assign, set over and otherwise convey to the Trustee, on behalf of the Trust, without recourse, for the benefit of the Certificateholders, all the right, title and interest of the Depositor, including any security interest therein for the benefit of the Depositor, in and to the Mortgage Loans identified on the Mortgage Loan Schedule, the rights of the Depositor under the Mortgage Loan Purchase Agreement (including, without limitation the right to enforce the obligations of the other parties thereto thereunder), the right to any Net Swap Payment and any Swap Termination Payment made by the Swap Provider, and all other assets included or to be included in REMIC I. Such assignment includes all interest and principal received by the Depositor and the Servicer on or with respect to the Mortgage Loans
(other than payments of principal and interest due on such Mortgage Loans on or before the Cut-off Date).  The Depositor herewith delivers to the Trustee an executed copy of the Mortgage Loan Purchase Agreement.

In connection with such transfer and assignment, the Depositor does hereby deliver to, and deposit with the Custodian pursuant to the Custodial Agreement the documents with respect to each Mortgage Loan as described under Section 2 of the Custodial Agreement (the “Mortgage Loan Documents”). In connection with such delivery and as further described in the Custodial Agreement, the Custodian will be required to review such Mortgage Loan Documents and deliver to the Trustee, the Depositor, the Servicer and the Seller certifications (in the forms attached to the Custodial Agreement) with respect to such review with exceptions noted thereon.  In addition, under the Custodial Agreement the Depositor will be required to cure certain defects with respect to the Mortgage Loan Documents for the related Mortgage Loans after the delivery thereof by the Depositor to the Custodian as more
particularly set forth therein.

In the event that any Assignment of Mortgage is not recorded or is improperly recorded, the Servicer shall have no liability for its failure to receive or act on notices related to such Assignments of Mortgage or otherwise.

Notwithstanding anything to the contrary contained herein, the parties hereto acknowledge that the functions of the Trustee with respect to the custody, acceptance, inspection and release of the Mortgage Files, including, but not limited to certain insurance policies and documents contemplated by Section 4.11, and preparation and delivery of the certifications shall be performed by the Custodian pursuant to the terms and conditions of the Custodial Agreement.

The Depositor shall deliver or cause the Originator to deliver to the Servicer copies of all trailing documents required to be included in the Mortgage File at the same time the originals or certified copies thereof are delivered to the Trustee or Custodian, such documents including the mortgagee policy of title insurance and any Mortgage Loan Documents upon return from the recording office.  The Servicer shall not be responsible for any custodian fees or other costs incurred in obtaining such documents and the Depositor shall cause the Servicer to be 

 

reimbursed for any such costs the Servicer may incur in connection with performing its obligations under this Agreement.

The Mortgage Loans permitted by the terms of this Agreement to be included in the Trust are limited to (i) Mortgage Loans (which the Depositor acquired pursuant to the Mortgage Loan Purchase Agreement, which contains, among other representations and warranties, a representation and warranty of the Seller that no Mortgage Loan is a “High-Cost Home Loan” as defined in the New Jersey Home Ownership Act effective November 27, 2003 or as defined in the New Mexico Home Loan Protection Act effective January 1, 2004, as defined in the Massachusetts Predatory Home Loan Practices Act, effective November 7, 2004 (Mass. Ann. Laws Ch. 183C) or as defined in the Indiana Home Loan Practices Act, effective January 1, 2005 (Ind. Code Ann. Sections 24-9-1 through 24-9-9)) and (ii) Qualified Substitute Mortgage Loans (which, by definition as set forth herein and referred to in the Mortgage Loan
Purchase Agreement, are required to conform to, among other representations and warranties, the representation and warranty of the Seller that no Qualified Substitute Mortgage Loan is a “High-Cost Home Loan” as defined in the New Jersey Home Ownership Act effective November 27, 2003 or as defined in the New Mexico Home Loan Protection Act effective January 1, 2004, as defined in the Massachusetts Predatory Home Loan Practices Act, effective November 7, 2004 (Mass. Ann. Laws Ch. 183C) or as defined in the Indiana Home Loan Practices Act, effective January 1, 2005 (Ind. Code Ann. Sections 24-9-1 through 24-9-9).  The Depositor and the Trustee on behalf of the Trust understand and agree that it is not intended that any mortgage loan be included in the Trust that is a “High-Cost Home Loan” as defined in the New Jersey Home Ownership Act effective November 27, 2003, as defined in the New Mexico Home Loan Protection Act effective January 1, 2004, as defined in the
Massachusetts Predatory Home Loan Practices Act, effective November 7, 2004 (Mass. Ann. Laws Ch. 183C) or as defined in the Indiana Home Loan Practices Act, effective January 1, 2005 (Ind. Code Ann. Sections 24-9-1 through 24-9-9).

	
            SECTION 2.02.
 	
            Acceptance of REMIC I by Trustee.
 

The Trustee acknowledges receipt, subject to the provisions of Section 2.01 hereof and Section 2 of the Custodial Agreement, of the Mortgage Loan Documents and all other assets included in the definition of “REMIC I” under clauses (i), (iii), (iv) and (v) (to the extent of amounts deposited into the Distribution Account) and declares that it holds (or the Custodian on its behalf holds) and will hold such documents and the other documents delivered to it constituting a Mortgage Loan Document, and that it holds (or the Custodian on its behalf holds) or will hold all such assets and such other assets included in the definition of “REMIC I” in trust for the exclusive use and benefit of all present and future Certificateholders.

	
            SECTION 2.03.
 	
            Repurchase or Substitution of Mortgage Loans.
 

(a)        Upon discovery or receipt of notice of any materially defective document in, or that a document is missing from, a Mortgage File or of a breach by the Seller of any representation, warranty or covenant under the Mortgage Loan Purchase Agreement in respect of any Mortgage Loan that materially and adversely affects the value of such Mortgage Loan or the interest therein of the Certificateholders, the Trustee shall promptly notify the Seller and the Servicer of such defect, missing document or breach and request that the Seller deliver such 

 

missing document, cure such defect or breach within sixty (60) days from the date the Seller was notified of such missing document, defect or breach, and if the Seller does not deliver such missing document or cure such defect or breach in all material respects during such period, the Trustee shall enforce the obligations of the Seller under the Mortgage Loan Purchase Agreement to repurchase such Mortgage Loan from REMIC I at the Purchase Price within ninety (90) days after the date on which the Seller was notified of such missing document, defect or breach, if and to the extent that the Seller is obligated to do so under the Mortgage Loan Purchase Agreement. The Purchase Price for the repurchased Mortgage Loan shall be remitted to the Servicer for deposit in the Collection Account and the Trustee, upon receipt of written certification from the Servicer of such deposit, shall release or cause the Custodian
(upon receipt of a request for release in the form attached to the Custodial Agreement) to release to the Seller the related Mortgage File and the Trustee shall execute and deliver such instruments of transfer or assignment, in each case without recourse, representation or warranty, as the Seller shall furnish to it and as shall be necessary to vest in the Seller any Mortgage Loan released pursuant hereto, and the Trustee shall not have any further responsibility with regard to such Mortgage File. In lieu of repurchasing any such Mortgage Loan as provided above, if so provided in the Mortgage Loan Purchase Agreement, the Seller may cause such Mortgage Loan to be removed from REMIC I (in which case it shall become a Deleted Mortgage Loan) and substitute one or more Qualified Substitute Mortgage Loans in the manner and subject to the limitations set forth in Section 2.03(b). It is understood and agreed that the obligation of the Seller to cure or to repurchase (or to substitute
for) any Mortgage Loan as to which a document is missing, a material defect in a constituent document exists or as to which such a breach has occurred and is continuing shall constitute the sole remedy respecting such omission, defect or breach available to the Trustee and the Certificateholders.  Notwithstanding anything to the contrary contained herein, any breach of a representation or warranty contained in clauses (xxxiv), (xxxviii), (xxxix), (xl), (xli), (xlvi), (xlvii) and/or (lvi) of Section 6 of the Mortgage Loan Purchase Agreement shall be automatically deemed to affect materially and adversely the interests of the Certificateholders.

The Trustee shall enforce the obligations of the Seller under the Mortgage Loan Purchase Agreement to remedy any breach of the representation or covenant of the Seller set forth in Section 5(xii) of the Mortgage Loan Purchase Agreement which materially and adversely affects the interests of the Holders of the Class P Certificates in any Prepayment Charge.

(b)        Any substitution of Qualified Substitute Mortgage Loans for Deleted Mortgage Loans made pursuant to Section 2.03(a) must be effected prior to the date which is two years after the Startup Day for REMIC I.

As to any Deleted Mortgage Loan for which the Seller substitutes a Qualified Substitute Mortgage Loan or Loans, such substitution shall be effected by the Seller delivering to the Trustee or the Custodian on behalf of the Trustee, for such Qualified Substitute Mortgage Loan or Loans, the Mortgage Note, the Mortgage, the Assignment to the Trustee, and such other documents and agreements, with all necessary endorsements thereon, as are required by Section 2 of the Custodial Agreement, as applicable, together with an Officers’ Certificate providing that each such Qualified Substitute Mortgage Loan satisfies the definition thereof and specifying the Substitution Shortfall Amount (as described below), if any, in connection with 

 

such substitution. The Custodian on behalf of the Trustee shall acknowledge receipt of such Qualified Substitute Mortgage Loan or Loans and, within ten (10) Business Days thereafter, review such documents and deliver to the Depositor, the Trustee and the Servicer, with respect to such Qualified Substitute Mortgage Loan or Loans, an initial certification pursuant to the Custodial Agreement, with any applicable exceptions noted thereon. Within one year of the date of substitution, the Custodian on behalf of the Trustee shall deliver to the Depositor, the Trustee and the Servicer a final certification pursuant to the Custodial Agreement with respect to such Qualified Substitute Mortgage Loan or Loans, with any applicable exceptions noted thereon. Monthly Payments due with respect to Qualified Substitute Mortgage Loans in the month of substitution are not part of REMIC I and will be retained by the Seller.
For the month of substitution, distributions to Certificateholders will reflect the Monthly Payment due on such Deleted Mortgage Loan on or before the Due Date in the month of substitution, and the Seller shall thereafter be entitled to retain all amounts subsequently received in respect of such Deleted Mortgage Loan. The Depositor shall give or cause to be given written notice to the Certificateholders that such substitution has taken place, shall amend the Mortgage Loan Schedule to reflect the removal of such Deleted Mortgage Loan from the terms of this Agreement and the substitution of the Qualified Substitute Mortgage Loan or Loans and shall deliver a copy of such amended Mortgage Loan Schedule to the Trustee and the Servicer. Upon such substitution, such Qualified Substitute Mortgage Loan or Loans shall constitute part of the Trust Fund and shall be subject in all respects to the terms of this Agreement and the Mortgage Loan Purchase Agreement, including all applicable
representations and warranties thereof included herein or in the Mortgage Loan Purchase Agreement.

For any month in which the Seller substitutes one or more Qualified Substitute Mortgage Loans for one or more Deleted Mortgage Loans, the Servicer will determine the amount (the “Substitution Shortfall Amount”), if any, by which the aggregate Purchase Price of all such Deleted Mortgage Loans exceeds the aggregate of, as to each such Qualified Substitute Mortgage Loan, the Scheduled Principal Balance thereof as of the date of substitution, together with one month’s interest on such Scheduled Principal Balance at the applicable Net Mortgage Rate, plus all outstanding P&I Advances and Servicing Advances (including Nonrecoverable P&I Advances and Nonrecoverable Servicing Advances) related thereto. On the date of such substitution, the Seller will deliver or cause to be delivered to the Servicer for deposit in the Collection Account an amount equal to the Substitution
Shortfall Amount, if any, and the Trustee or the Custodian on behalf of the Trustee, upon receipt of the related Qualified Substitute Mortgage Loan or Loans, upon receipt of a request for release in the form attached to the Custodial Agreement and certification by the Servicer of such deposit, shall release to the Seller the related Mortgage File or Files and the Trustee shall execute and deliver such instruments of transfer or assignment, in each case without recourse, representation or warranty, as the Seller shall deliver to it and as shall be necessary to vest therein any Deleted Mortgage Loan released pursuant hereto.

In addition, the Seller shall obtain at its own expense and deliver to the Trustee an Opinion of Counsel to the effect that such substitution will not cause (a) any federal tax to be imposed on any Trust REMIC, including without limitation, any federal tax imposed on “prohibited transactions” under Section 860F(a)(1) of the Code or on “contributions after the startup date” under Section 860G(d)(1) of the Code, or (b) any Trust REMIC to fail to qualify as a REMIC at any time that any Certificate is outstanding.

 

 

(c)        Upon discovery by the Depositor, the Seller, the Servicer or the Trustee that any Mortgage Loan does not constitute a “qualified mortgage” within the meaning of Section 860G(a)(3) of the Code, the party discovering such fact shall within two (2) Business Days give written notice thereof to the other parties. In connection therewith, the Seller shall repurchase or substitute one or more Qualified Substitute Mortgage Loans for the affected Mortgage Loan within ninety (90) days of the earlier of discovery or receipt of such notice with respect to such affected Mortgage Loan. Such repurchase or substitution shall be made by (i) the Seller if the affected Mortgage Loan’s status as a non-qualified mortgage is or results from a breach of any representation, warranty or covenant made by the Seller under the Mortgage Loan
Purchase Agreement or (ii) the Depositor, if the affected Mortgage Loan’s status as a non-qualified mortgage does not result from a breach of a representation or warranty. Any such repurchase or substitution shall be made in the same manner as set forth in Section 2.03(a). The Trustee shall reconvey to the Seller the Mortgage Loan to be released pursuant hereto in the same manner, and on the same terms and conditions, as it would a Mortgage Loan repurchased for breach of a representation or warranty.

(d)        With respect to a breach of the representations made pursuant to Section 5(xii) of the Mortgage Loan Purchase Agreement that materially and adversely affects the value of such Mortgage Loan or the interest therein of the Certificateholders, the Seller shall be required to take the actions set forth in this Section 2.03.

(e)        Within ninety (90) days of the earlier of discovery by the Servicer or receipt of notice by the Servicer of the breach of any representation, warranty or covenant of the Servicer set forth in Section 2.05 which materially and adversely affects the interests of the Certificateholders in any Mortgage Loan or Prepayment Charge, the Servicer shall cure such breach in all material respects.

	
            SECTION 2.04.
 	
            Representations and Warranties of the Master Servicer.
 

The Master Servicer hereby represents, warrants and covenants to the Servicer, the Depositor and the Trustee, for the benefit of each of the Trustee and the Certificateholders, that as of the Closing Date or as of such date specifically provided herein:

(i)         The Master Servicer is a national banking association duly formed, validly existing and in good standing under the laws of the United States of America and is duly authorized and qualified to transact any and all business contemplated by this Agreement to be conducted by the Master Servicer;

(ii)         The Master Servicer has the full power and authority to conduct its business as presently conducted by it and to execute, deliver and perform, and to enter into and consummate, all transactions contemplated by this Agreement. The Master Servicer has duly authorized the execution, delivery and performance of this Agreement, has duly executed and delivered this Agreement, and this Agreement, assuming due authorization, execution and delivery by the other parties hereto, constitutes a legal, valid and binding obligation of the Master Servicer, enforceable against it in accordance with its terms except as the enforceability thereof may be limited by bankruptcy, insolvency, 

 

reorganization or similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity;

(iii)        The execution and delivery of this Agreement by the Master Servicer, the consummation by the Master Servicer of any other of the transactions herein contemplated, and the fulfillment of or compliance with the terms hereof are in the ordinary course of business of the Master Servicer and will not (A) result in a breach of any term or provision of charter and by-laws of the Master Servicer or (B) conflict with, result in a breach, violation or acceleration of, or result in a default under, the terms of any other material agreement or instrument to which the Master Servicer is a party or by which it may be bound, or any statute, order or regulation applicable to the Master Servicer of any court, regulatory body, administrative agency or governmental body having jurisdiction over the Master Servicer; and the Master
Servicer is not a party to, bound by, or in breach or violation of any indenture or other agreement or instrument, or subject to or in violation of any statute, order or regulation of any court, regulatory body, administrative agency or governmental body having jurisdiction over it, which materially and adversely affects or, to the Master Servicer’s knowledge, would in the future materially and adversely affect, (x) the ability of the Master Servicer to perform its obligations under this Agreement or (y) the business, operations, financial condition, properties or assets of the Master Servicer taken as a whole;

(iv)        The Master Servicer does not believe, nor does it have any reason or cause to believe, that it cannot perform each and every covenant made by it and contained in this Agreement;

(v)        No litigation is pending against the Master Servicer that would materially and adversely affect the execution, delivery or enforceability of this Agreement or the ability of the Master Servicer to perform any of its other obligations hereunder in accordance with the terms hereof,

(vi)        There are no actions or proceedings against, or investigations known to it of, the Master Servicer before any court, administrative or other tribunal (A) that might prohibit its entering into this Agreement, (B) seeking to prevent the consummation of the transactions contemplated by this Agreement or (C) that might prohibit or materially and adversely affect the performance by the Master Servicer of its obligations under, or validity or enforceability of, this Agreement; and

(vii)       No consent, approval, authorization or order of any court or governmental agency or body is required for the execution, delivery and performance by the Master Servicer of, or compliance by the Master Servicer with, this Agreement or the consummation by it of the transactions contemplated by this Agreement, except for such consents, approvals, authorizations or orders, if any, that have been obtained prior to the Closing Date.

It is understood and agreed that the representations, warranties and covenants set forth in this Section 2.04 shall survive the resignation or termination of the parties hereto and the 

 

termination of this Agreement and shall inure to the benefit of the Trustee, the Depositor and the Certificateholders.

	
            SECTION 2.05.
 	
            Representations, Warranties and Covenants of the Servicer.
 

(a)        The Servicer hereby represents, warrants and covenants to the Master Servicer, the Securities Administrator, the Depositor and the Trustee, for the benefit of each of such Persons and the Certificateholders that as of the Closing Date or as of such date specifically provided herein:

(i)         The Servicer is a limited partnership duly formed and validly existing and in good standing as a limited partnership under the laws of the State of Delaware, and is duly authorized and qualified to transact any and all business contemplated by this Agreement to be conducted by the Servicer in any state in which a Mortgaged Property is located or is otherwise not required under applicable law to effect such qualification and, in any event, is in compliance with the doing business laws of any such State, to the extent necessary to ensure its ability to enforce each Mortgage Loan and to service the Mortgage Loans in accordance with the terms of this Agreement;

(ii)         The Servicer has the full power and authority to conduct its business as presently conducted by it and to execute, deliver and perform, and to enter into and consummate, all transactions contemplated by this Agreement.  The Servicer has duly authorized the execution, delivery and performance of this Agreement, has duly executed and delivered this Agreement, and this Agreement, assuming due authorization, execution and delivery by the other parties hereto, constitutes a legal, valid and binding obligation of the Servicer, enforceable against it in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency, reorganization or similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity;

(iii)        The execution and delivery of this Agreement by the Servicer, the servicing of the Mortgage Loans by the Servicer hereunder, the consummation by the Servicer of any other of the transactions herein contemplated, and the fulfillment of or compliance with the terms hereof are in the ordinary course of business of the Servicer and will not (A) result in a breach of any term or provision of the limited partnership agreement of the Servicer or (B) conflict with, result in a breach, violation or acceleration of, or result in a default under, the terms of any other material agreement or instrument to which the Servicer is a party or by which it may be bound, or any statute, order or regulation applicable to the Servicer of any court, regulatory body, administrative agency or governmental body having jurisdiction over the
Servicer; and the Servicer is not a party to, bound by, or in breach or violation of any indenture or other agreement or instrument, or subject to or in violation of any statute, order or regulation of any court, regulatory body, administrative agency or governmental body having jurisdiction over it, which materially and adversely affects or, to the Servicer's knowledge, would in the future materially and adversely affect, (x) the ability of the Servicer to perform its obligations under this Agreement, (y) the business, operations, financial condition, 

 

properties or assets of the Servicer taken as a whole or (z) the legality, validity or enforceability of this Agreement;

(iv)        The Servicer does not believe, nor does it have any reason or cause to believe, that it cannot perform each and every covenant made by it and contained in this Agreement;

(v)        No litigation is pending against the Servicer that would materially and adversely affect the execution, delivery or enforceability of this Agreement or the ability of the Servicer to service the Mortgage Loans or to perform any of its other obligations hereunder in accordance with the terms hereof;

(vi)        There are no actions or proceedings against, or investigations known to it of, the Servicer before any court, administrative or other tribunal (A) that might prohibit its entering into this Agreement, (B) seeking to prevent the consummation of the transactions contemplated by this Agreement or (C) that might prohibit or materially and adversely affect the performance by the Servicer of its obligations under, or the validity or enforceability of, this Agreement;

(vii)       No consent, approval, authorization or order of any court or governmental agency or body is required for the execution, delivery and performance by the Servicer of, or compliance by the Servicer with, this Agreement or the consummation by it of the transactions contemplated by this Agreement, except for such consents, approvals, authorizations or orders, if any, that have been obtained prior to the Closing Date;

(viii)      The Servicer has fully furnished and will continue to fully furnish, in accordance with the Fair Credit Reporting Act and its implementing regulations, accurate and complete information (e.g., favorable and unfavorable) on its borrower credit files to Equifax, Experian and Trans Union Credit Information Company or their successors on a monthly basis; 

(ix)        The Servicer is a member of MERS in good standing, and will comply in all material respects with the rules and procedures of MERS in connection with the servicing of the Mortgage Loans that are registered with MERS; and 

(x)        The Servicer will not waive any Prepayment Charge other than in accordance with the standard set forth in Section 3.01.

(b)        Notwithstanding anything to the contrary contained in this Agreement, if the covenant of the Servicer set forth in Section 2.05(a)(x) above is breached, the Servicer will pay the amount of such waived Prepayment Charge (the “Servicer Prepayment Charge Amount”), from its own funds without any right of reimbursement, for the benefit of the Holders of the Class P Certificates, by depositing such amount into the Collection Account within 90 days of the earlier of discovery by the Servicer or receipt of notice by the Servicer of such breach. Furthermore, notwithstanding any other provisions of this Agreement, any payments made by the Servicer in respect of any waived Prepayment Charges pursuant to this paragraph shall be deemed to be paid outside of the Trust Fund.  

 

 

(c)        It is understood and agreed that the representations, warranties and covenants set forth in this Section 2.05 shall survive the resignation or termination of the parties hereto, the termination of this Agreement and the delivery of the Mortgage Files to the Custodian and shall inure to the benefit of the Trustee, the Master Servicer, the Securities Administrator, the Depositor, the Certificateholders. Upon discovery by any such Person or the Servicer of a breach of any of the foregoing representations, warranties and covenants which materially and adversely affects the value of any Mortgage Loan, Prepayment Charge or the interests therein of the Certificateholders, the party discovering such breach shall give prompt written notice (but in no event later than two (2) Business Days following such discovery) to the Trustee.  Subject to
Section 8.01, unless such breach shall not be susceptible of cure within ninety (90) days, the obligation of the Servicer set forth in Section 2.03(e) to cure breaches shall constitute the sole remedy against the Servicer available to the Certificateholders, the Depositor or the Trustee on behalf of the Certificateholders respecting a breach of the representations, warranties and covenants contained in this Section 2.05.

SECTION 2.06.        Issuance of the REMIC I Regular Interests and the Class R-I Interest.

The Trustee acknowledges the assignment to it of the Mortgage Loans and the delivery to the Custodian on its behalf of the Mortgage Loan Documents, subject to the provisions of Section 2.01 and Section 2.02 hereof and Section 2 of the Custodial Agreement, together with the assignment to it of all other assets included in REMIC I, the receipt of which is hereby acknowledged. The interests evidenced by the Class R-I Interest, together with the REMIC I Regular Interests, constitute the entire beneficial ownership interest in REMIC I.  The rights of the Holders of the Class R-I Interest and REMIC I (as holder of the REMIC I Regular Interests) to receive distributions from the proceeds of REMIC I in respect of the Class R-I Interest and the REMIC I Regular Interests, respectively, and all ownership interests evidenced or constituted by the Class R-I Interest and the REMIC I
Regular Interests, shall be as set forth in this Agreement.

SECTION 2.07.        Conveyance of the REMIC I Regular Interests; Acceptance of REMIC II, REMIC III, REMIC IV, REMIC V, REMIC VI, REMIC VII, REMIC VIII, REMIC IX, REMIC X and REMIC XI by the Trustee.

The Depositor, concurrently with the execution and delivery hereof, does hereby transfer, assign, set over and otherwise convey to the Trustee, without recourse all the right, title and interest of the Depositor in and to the REMIC I Regular Interests for the benefit of the Class R-II Interest and REMIC II (as holder of the REMIC I Regular Interests). The Trustee acknowledges receipt of the REMIC I Regular Interests and declares that it holds and will hold the same in trust for the exclusive use and benefit of all present and future Holders of the Class R-II Interest and REMIC II (as holder of the REMIC I Regular Interests). The rights of the Holder of the Class R-II Interest and REMIC II (as holder of the REMIC I Regular Interests) to receive distributions from the proceeds of REMIC II in respect of the Class R-II Interest and the REMIC II Regular Interests, respectively, and all
ownership interests evidenced or constituted by the Class R-II Interest and the REMIC II Regular Interests, shall be as set forth in this Agreement. The Class R-II Interest and the REMIC II Regular Interests shall constitute the entire beneficial ownership interest in REMIC II.  The Trustee acknowledges receipt of the REMIC II 

 

Regular Interests and declares that it holds and will hold the same in trust for the exclusive use and benefit of all present and future Holders of the Class R-III Interest and REMIC III (as holder of the REMIC II Regular Interests). The rights of the Holder of the Class R-III Interest and REMIC III (as holder of the REMIC II Regular Interests) to receive distributions from the proceeds of REMIC III in respect of the Class R-III Interest and the Regular Certificates (other than the Class B Certificates, Class CE Certificates and Class P Certificates), respectively, and all ownership interests evidenced or constituted by the Class R-III Interest and the Regular Certificates (other than the Class B Certificates, Class CE Certificates and Class P Certificates) shall be as set forth in this Agreement. The Class R-III Interest and the Regular Certificates (other than the Class CE Certificates and Class P
Certificates) shall constitute the entire beneficial ownership interest in REMIC III.  The rights of the Holder of the Class R-IV Interest and REMIC IV (as holder of the Class CE Interest) to receive distributions from the proceeds of REMIC IV in respect of the Class R-IV Interest and the Class CE Certificates, respectively, and all ownership interests evidenced or constituted by the Class R-IV Interest and the Class CE Certificates, shall be as set forth in this Agreement. The Class R-IV Interest and the Class CE Certificates shall constitute the entire beneficial ownership interest in REMIC IV.  The rights of the Holder of the Class R-V Interest and REMIC V (as holder of the Class P Interest) to receive distributions from the proceeds of REMIC V in respect of the Class R-V Interest and the Class P Certificates, respectively, and all ownership interests evidenced or constituted by the Class R-V Interest and the Class P Certificates, shall be as set forth in this Agreement. The Class
R-V Interest and the Class P Certificates shall constitute the entire beneficial ownership interest in REMIC V.  The rights of the Holder of the Class R-VI Interest and REMIC VI (as holder of the REMIC III Regular Interest IO) to receive distributions from the proceeds of REMIC VI in respect of the Class R-VI Interest and the Class IO Interest, respectively, and all ownership interests evidenced or constituted by the Class R-VI Interest and the Class IO Interest, shall be as set forth in this Agreement. The Class R-VI Interest and the Class IO Interest shall constitute the entire beneficial ownership interest in REMIC VI.  The rights of the Holder of the Class R-VII Interest and REMIC VII (as holder of the Class B-1 Interest) to receive distributions from the proceeds of REMIC VII in respect of the Class R-VII Interest and the Class B-1 Certificates, respectively, and all ownership interests evidenced or constituted by the Class R-VII Interest and the Class B-1 Certificates, shall be
as set forth in this Agreement. The Class R-VII Interest and the Class B-1 Certificates shall constitute the entire beneficial ownership interest in REMIC VII.  The rights of the Holder of the Class R-VIII Interest and REMIC VIII (as holder of the Class B-2 Interest) to receive distributions from the proceeds of REMIC VIII in respect of the Class R-VIII Interest and the Class B-2 Certificates, respectively, and all ownership interests evidenced or constituted by the Class R-VIII Interest and the Class B-2 Certificates, shall be as set forth in this Agreement. The Class R-VIII Interest and the Class B-2 Certificates shall constitute the entire beneficial ownership interest in REMIC VIII.  The rights of the Holder of the Class R-IX Interest and REMIC IX (as holder of the Class B-3 Interest) to receive distributions from the proceeds of REMIC IX in respect of the Class R-IX Interest and the Class B-3 Certificates, respectively, and all ownership interests evidenced or constituted by the
Class R-IX Interest and the Class B-3 Certificates, shall be as set forth in this Agreement. The Class R-IX Interest and the Class B-3 Certificates shall constitute the entire beneficial ownership interest in REMIC IX.  The rights of the Holder of the Class R-X Interest and REMIC X (as holder of the Class B-4 Interest) to receive distributions from the proceeds of REMIC X in respect of the Class R-X Interest and the Class B-4 Certificates, respectively, and all ownership interests evidenced or constituted by the 

 

Class R-X Interest and the Class B-4 Certificates, shall be as set forth in this Agreement. The Class R-X Interest and the Class B-4 Certificates shall constitute the entire beneficial ownership interest in REMIC X.  The rights of the Holder of the Class R-XI Interest and REMIC XI (as holder of the Class B-5 Interest) to receive distributions from the proceeds of REMIC XI in respect of the Class R-XI Interest and the Class B-5 Certificates, respectively, and all ownership interests evidenced or constituted by the Class R-XI Interest and the Class B-5 Certificates, shall be as set forth in this Agreement. The Class R-XI Interest and the Class B-5 Certificates shall constitute the entire beneficial ownership interest in REMIC XI.

	
            SECTION 2.08.
 	
            Issuance of Residual Certificates.
 

The Trustee acknowledges the assignment to it of the REMIC I Regular Interests and, concurrently therewith and in exchange therefor, pursuant to the written request of the Depositor executed by an officer of the Depositor, the Securities Administrator has executed and authenticated and the Trustee has delivered to or upon the order of the Depositor, the Class R Certificates and Class R-X Certificates in authorized denominations. The Class R Certificates evidence ownership in the Class R-I Interest, the Class R-II Interest and the Class R-III Interest.  The Class R-X Certificates evidence ownership in the Class R-IV Interest, the Class R-V Interest and the Class R-VI Interest. 

	
            SECTION 2.09.
 	
            Establishment of the Trust.
 

The Depositor does hereby establish, pursuant to the further provisions of this Agreement and the laws of the State of New York, an express trust to be known, for convenience, as “ACE Securities Corp., Home Equity Loan Trust, Series 2005-AG1” and does hereby appoint HSBC Bank USA, National Association as Trustee in accordance with the provisions of this Agreement.

 

 

ARTICLE III

 

ADMINISTRATION AND SERVICING

OF THE MORTGAGE LOANS; ACCOUNTS

	
            SECTION 3.01.
 	
            The Servicer to Act as Servicer.
 

From and after the Closing Date, the Servicer shall service and administer the Mortgage Loans on behalf of the Trust Fund and in the best interests of and for the benefit of the Certificateholders (as determined by the Servicer in its reasonable judgment) in accordance with the terms of this Agreement and the respective Mortgage Loans and all applicable laws and regulations and, to the extent consistent with such terms, in the same manner in which it services and administers similar mortgage loans for its own portfolio, giving due consideration to customary and usual standards of practice of prudent mortgage lenders and loan servicers administering similar mortgage loans but without regard to:

(i)         any relationship that the Servicer or any Affiliate of the Servicer may have with the related Mortgagor;

(ii)         the ownership of any Certificate by the Servicer or any Affiliate of the Servicer;

(iii)        the Servicer’s obligation to make P&I Advances or Servicing Advances; or

(iv)        the Servicer’s right to receive compensation for its services hereunder.

To the extent consistent with the foregoing, the Servicer shall also seek to maximize the timely and complete recovery of principal and interest on the Mortgage Loans.

Subject only to the above-described servicing standards (the “Accepted Servicing Practices”) and the terms of this Agreement and of the related Mortgage Loans, the Servicer shall have full power and authority, to do or cause to be done any and all things in connection with such servicing and administration which it may deem necessary or desirable with the goal of maximizing proceeds of the Mortgage Loan.  Without limiting the generality of the foregoing, the Servicer in its own name or in the name of the Trustee, solely in its capacity as Trustee for the Trust, is hereby authorized and empowered by the Trustee when the Servicer believes it appropriate in its best judgment, to execute and deliver, on behalf of the Trust Fund, the Certificateholders and the Trustee or any of them, and upon written notice to the Trustee, any and all instruments of satisfaction or cancellation, or of
partial or full release or discharge or subordination, and all other comparable instruments, with respect to the related Mortgage Loans and the related Mortgaged Properties and to institute foreclosure proceedings or obtain a deed-in-lieu of foreclosure so as to convert the ownership of such properties, and to hold or cause to be held title to such properties, on behalf of the Trustee, for the benefit of the Trust Fund and the Certificateholders. The Servicer shall service and administer the related Mortgage Loans in accordance with applicable state and federal law and shall provide to the Mortgagors any reports required to be provided to them thereby. The Servicer shall also comply in the performance of 

 

this Agreement with all reasonable rules and requirements of each insurer under any standard hazard insurance policy. Subject to Section 3.14, the Trustee shall execute, at the written request of the Servicer, and furnish to the Servicer a power of attorney in the form of Exhibit D hereto and other documents necessary or appropriate to enable the Servicer to carry out its servicing and administrative duties hereunder and furnished to the Trustee by the Servicer, and the Trustee shall not be liable for the actions of the Servicer under such powers of attorney and shall be indemnified by the Servicer for any cost, liability or expense incurred by the Trustee in connection with the Servicer’s use or misuse of any such power of attorney.

In accordance with Accepted Servicing Practices, the Servicer shall make or cause to be made Servicing Advances as necessary for the purpose of effecting the payment of taxes and assessments on the Mortgaged Properties, which Servicing Advances shall be reimbursable in the first instance from related collections from the related Mortgagors pursuant to Section 3.07, and further as provided in Section 3.09; provided, however, the Servicer shall only make such Servicing Advance if the related Mortgagor has not made such payment and if the failure to make such Servicing Advance would result in the loss of the related Mortgaged Property due to a tax sale or foreclosure as result of a tax lien.  Any cost incurred by the Servicer in effecting the payment of taxes and assessments on a Mortgaged Property shall not, for the purpose of calculating the Stated Principal Balance of such
Mortgage Loan or distributions to Certificateholders, be added to the unpaid principal balance of the related Mortgage Loan, notwithstanding that the terms of such Mortgage Loan so permit.  

Notwithstanding anything in this Agreement to the contrary, the Servicer may not make any future advances with respect to a Mortgage Loan and the Servicer shall not permit any modification with respect to any related Mortgage Loan that would change the Mortgage Rate, reduce or increase the principal balance (except for reductions resulting from actual payments of principal) or change the final maturity date on such related Mortgage Loan (unless, as provided in Section 3.06, the related Mortgagor is in default with respect to the related Mortgage Loan or such default is, in the judgment of the Servicer, reasonably foreseeable) or any modification, waiver or amendment of any term of any related Mortgage Loan that would both (A) effect an exchange or reissuance of such Mortgage Loan under Section 1001 of the Code (or final, temporary or proposed Treasury regulations promulgated
thereunder) and (B) cause any Trust REMIC created hereunder to fail to qualify as a REMIC under the Code or the imposition of any tax on “prohibited transactions” or “contributions after the startup date” under the REMIC Provisions.

The Servicer further is authorized and empowered by the Trustee, on behalf of the Certificateholders and the Trustee, in its own name or in the name of the Sub-Servicer, when the Servicer or the Sub-Servicer, as the case may be, believes it is appropriate in its best judgment to register any Mortgage Loan on the MERS® System, or cause the removal from the registration of any Mortgage Loan on the MERS® System, to execute and deliver, on behalf of the Trustee and the Certificateholders or any of them, any and all instruments of assignment and other comparable instruments with respect to such assignment or re-recording of a Mortgage in the name of MERS, solely as nominee for the Trustee and its successors and assigns. Any reasonable expenses incurred in connection with the actions described in the preceding sentence or as a result of MERS discontinuing or becoming unable to continue
operations in connection with the MERS® System,

 

 

In the event that the Mortgage Loan Documents relating to a Mortgage Loan contain provisions requiring the related Mortgagor to arbitrate disputes (at the option of the Trustee, on behalf of the Trust), the Trustee hereby authorizes the Servicer to waive the Trustee’s right or option to arbitrate disputes and to send written notice of such waiver to the Mortgagor, although the Mortgagor may still require arbitration at its option.

The Servicer will fully furnish, in accordance with the Fair Credit Reporting Act and its implementing regulations, accurate and complete information (e.g., favorable and unfavorable) on its borrower credit files to Equifax, Experian and Trans Union Credit Information Company or their successors on a monthly basis.

Notwithstanding anything in this Agreement to the contrary, the Servicer shall waive (or permit a Sub-Servicer to waive) a Prepayment Charge only under the following circumstances: (i) such waiver is standard and customary in servicing similar Mortgage Loans and such waiver is related to a default or reasonably foreseeable default and would, in the reasonable judgment of the Servicer, maximize recovery of total proceeds taking into account the value of such Prepayment Charge and the related Mortgage Loan and, if such waiver is made in connection with a refinancing of the related Mortgage Loan, such refinancing is related to a default or a reasonably foreseeable default, (ii) such Prepayment Charge is unenforceable in accordance with applicable law or the collection of such related Prepayment Charge would otherwise violate applicable law (iii) the collection of such Prepayment Charge would
be considered “predatory” pursuant to written guidance published or issued by any applicable federal, state or local regulatory authority acting in its official capacity and having jurisdiction over such matters or (iv) the Servicer has not been provided with information sufficient to enable it to collect the Prepayment Charge.  If a Prepayment Charge is waived as permitted by meeting the standard described in clause (iv) above, then the Servicer shall enforce the obligation of the Seller to pay the amount of such waived Prepayment Charge to the Servicer for deposit in the Collection Account (to the extent paid by the Seller) for the benefit of the Holders of the Class P Certificates. 

Promptly upon the earlier of discovery by the Servicer or receipt of notice by the Servicer of the breach of the covenant of the Servicer set forth above which materially and adversely affects the interests of the Holders of the Class P Certificates in any Prepayment Charge, the Servicer shall promptly pay the Servicer Prepayment Charge Payment Amount (as defined in Section 2.05(b)) for the benefit of the holders of the Class P Certificates by depositing such amount into the Collection Account for distribution in accordance with the terms of this Agreement. The foregoing shall not, however, limit any remedies available to the Certificateholders, the Depositor or the Trustee on behalf of the Trust Fund and for the benefit of the Certificateholders, pursuant to the Mortgage Loan Purchase Agreement, respecting a breach of the representations, warranties and covenants of the Seller contained
in the Mortgage Loan Purchase Agreement.  The Master Servicer shall not be responsible for verifying Prepayment Charge payment amounts reported by the Servicer.

 

The Trustee, for the benefit of the Certificateholders, shall enforce the obligations of the Seller under the Mortgage Loan Purchase Agreement, including, without limitation, any obligation of the Seller to purchase a Mortgage Loan on account of missing or defective 

 

documentation or on account of a breach of a representation, warranty or covenant, as described in Section 2.03(a).

If reasonably requested by the Servicer, the Trustee shall furnish the Servicer with a Power of Attorney in the form attached hereto as Exhibit D.

SECTION 3.02.        Sub-Servicing Agreements Between the Servicer and Sub-Servicers.

The Servicer may arrange for the subservicing of any Mortgage Loan by a Sub- Servicer pursuant to a Sub-Servicing Agreement; provided that such sub-servicing arrangement and the terms of the related Sub-Servicing Agreement must provide for the servicing of such Mortgage Loans in a manner consistent with the servicing arrangements contemplated hereunder.  Each Sub-Servicer shall be (i) authorized to transact business in the state or states where the related Mortgaged Properties it is to service are situated, if and to the extent required by applicable law to enable the Sub-Servicer to perform its obligations hereunder and under the Sub-Servicing Agreement and (ii) a Freddie Mac or Fannie Mae approved mortgage servicer.  Notwithstanding the provisions of any Sub-Servicing Agreement, any of the provisions of this Agreement relating to agreements or arrangements between the Servicer or a
Sub-Servicer or reference to actions taken through the Servicer or otherwise, the Servicer shall remain obligated and liable to the Depositor, the Trustee and the Certificateholders for the servicing and administration of the Mortgage Loans in accordance with the provisions of this Agreement without diminution of such obligation or liability by virtue of such Sub-Servicing Agreements or arrangements or by virtue of indemnification from the Sub-Servicer and to the same extent and under the same terms and conditions as if the Servicer alone were servicing and administering the Mortgage Loans. Every Sub-Servicing Agreement entered into by the Servicer shall contain a provision giving the successor servicer the option to terminate such agreement in the event a successor servicer is appointed.  All actions of each Sub-Servicer performed pursuant to the related Sub-Servicing Agreement shall be performed as an agent of the Servicer with the same force and effect as if performed directly by
the Servicer.

For purposes of this Agreement, the Servicer shall be deemed to have received any collections, recoveries or payments with respect to the Mortgage Loans that are received by a Sub-Servicer regardless of whether such payments are remitted by the Sub-Servicer to the Servicer.  

	
            SECTION 3.03.
 	
            Successor Sub-Servicers.
 

Any Sub-Servicing Agreement shall provide that the Servicer shall be entitled to terminate any Sub-Servicing Agreement and to either itself directly service the related Mortgage Loans or enter into a Sub-Servicing Agreement with a successor Sub-Servicer which qualifies under Section 3.02.  Any Sub-Servicing Agreement shall include the provision that such agreement may be immediately terminated by any successor to the Servicer (which may be the Master Servicer) without fee, in accordance with the terms of this Agreement, in the event that the Servicer (or any successor to the Servicer) shall, for any reason, no longer be the Servicer of the related Mortgage Loans (including termination due to a Servicer Event of Default).

 

 

SECTION 3.04.        No Contractual Relationship Between Sub-Servicer, Trustee or the Certificateholders.

Any Sub-Servicing Agreement and any other transactions or services relating to the Mortgage Loans involving a Sub-Servicer shall be deemed to be between the Sub-Servicer and the Servicer alone and the Master Servicer, Trustee and the Certificateholders shall not be deemed parties thereto and shall have no claims, rights, obligations, duties or liabilities with respect to any Sub-Servicer except as set forth in Section 3.05.

SECTION 3.05.        Assumption or Termination of Sub-Servicing Agreement by Successor Servicer.

In connection with the assumption of the responsibilities, duties and liabilities and of the authority, power and rights of the Servicer hereunder by a successor servicer (which may be the Master Servicer) pursuant to Section 8.02, it is understood and agreed that the Servicer’s rights and obligations under any Sub-Servicing Agreement then in force between the Servicer and a Sub-Servicer shall be assumed simultaneously by such successor servicer without act or deed on the part of such successor servicer; provided, however, that any successor servicer may terminate the Sub-Servicer.

The Servicer shall, upon the reasonable request of the Master Servicer, but at its own expense, deliver to the assuming party documents and records relating to each Sub-Servicing Agreement and an accounting of amounts collected and held by it and otherwise use its best efforts to effect the orderly and efficient transfer of the Sub-Servicing Agreements to the assuming party.

The Servicing Fee payable to any such successor servicer shall be payable from payments received on the Mortgage Loans in the amount and in the manner set forth in this Agreement.

	
            SECTION 3.06.
 	
            Collection of Certain Mortgage Loan Payments.
 

The Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the related Mortgage Loans, and shall, to the extent such procedures shall be consistent with this Agreement and Accepted Servicing Practices, follow such collection procedures as it would follow with respect to mortgage loans comparable to the Mortgage Loans and held for its own account. Consistent with the foregoing, the Servicer may in its discretion (i) waive any late payment charge or, if applicable, penalty interest or (ii) extend the due dates for the Monthly Payments due on a Mortgage Note related to a Mortgage Loan for a period of not greater than 180 days; provided that any extension pursuant to this clause shall not affect the amortization schedule of any Mortgage Loan for purposes of any computation hereunder. Notwithstanding the foregoing, in the event that any
Mortgage Loan is in default or, in the judgment of the Servicer, such default is reasonably foreseeable, the Servicer, consistent with Accepted Servicing Practices may waive, modify or vary any term of such Mortgage Loan (including modifications that change the Mortgage Rate, forgive the payment of principal or interest or extend the final maturity date of such Mortgage Loan), accept payment from the related Mortgagor of an amount less than the Stated Principal Balance in final satisfaction of 

 

such Mortgage Loan, or consent to the postponement of strict compliance with any such term or otherwise grant indulgence to any Mortgagor if in the Servicer’s determination such waiver, modification, postponement or indulgence is not materially adverse to the interests of the Certificateholders (taking into account any estimated Realized Loss that might result absent such action).

SECTION 3.07.        Collection of Taxes, Assessments and Similar Items; Servicing Accounts.

To the extent the terms of a Mortgage provide for Escrow Payments, the Servicer shall establish and maintain one or more accounts (the “Servicing Accounts”), into which all collections from the Mortgagors (or related advances from Sub-Servicers) for the payment of taxes, assessments, fire, flood, and hazard insurance premiums, and comparable items for the account of the Mortgagors (“Escrow Payments”) shall be deposited and retained. Servicing Accounts shall be Eligible Accounts.  The Servicer shall deposit in the Servicing Accounts on a daily basis and in no event later than the second Business Day after receipt, and retain therein, all Escrow Payments collected on account of the Mortgage Loans, for the purpose of effecting the timely payment of any such items as required under the terms of this Agreement. Withdrawals of amounts from a Servicing Account may be made only
to (i) effect timely payment of taxes, assessments, fire, flood, and hazard insurance premiums, and comparable items; (ii) reimburse itself out of related collections for any Servicing Advances made pursuant to Section 3.01 (with respect to taxes and assessments) and Section 3.11 (with respect to fire, flood and hazard insurance); (iii) refund to Mortgagors any sums as may be determined to be overages; (iv) pay interest, if required and as described below, to Mortgagors on balances in the Servicing Account; or (v) clear and terminate the Servicing Account at the termination of the Servicer’s obligations and responsibilities in respect of the Mortgage Loans under this Agreement in accordance with Article X. As part of its servicing duties, the Servicer shall pay to the Mortgagors interest on funds in Servicing Accounts, to the extent required by law and, to the extent that interest earned on funds in the Servicing Accounts is insufficient, to pay such interest from its
own funds, without any reimbursement therefor. Notwithstanding the foregoing, the Servicer shall not be obligated to collect Escrow Payments if the related Mortgage Loan does not require such payments but the Servicer shall nevertheless be obligated to make Servicing Advances as provided in Section 3.01 and Section 3.11. In the event the Servicer shall deposit in the Servicing Accounts any amount not required to be deposited therein, it may at any time withdraw such amount from the Servicing Accounts, any provision to the contrary notwithstanding.

To the extent that a Mortgage does not provide for Escrow Payments, the Servicer (i) shall determine whether any such payments are made by the Mortgagor in a manner and at a time that is necessary to avoid the loss of the Mortgaged Property due to a tax sale or the foreclosure as a result of a tax lien and (ii) shall ensure that all insurance required to be maintained on the Mortgaged Property pursuant to this Agreement is maintained.  If any such payment has not been made and the Servicer receives notice of a tax lien with respect to the Mortgage Loan being imposed, the Servicer shall, promptly and to the extent required to avoid loss of the Mortgaged Property, advance or cause to be advanced funds necessary to discharge such lien on the Mortgaged Property unless the Servicer determines the advance to be nonrecoverable.  The Servicer assumes full responsibility for the payment of all such
bills and shall effect payments of all such bills irrespective of the Mortgagor’s faithful performance in the 

 

payment of same or the making of the Escrow Payments and shall make Servicing Advances to effect such payments subject to its determination of recoverability.

	
            SECTION 3.08.
 	
            Collection Account and Distribution Account.
 

(a)        On behalf of the Trust Fund, the Servicer shall establish and maintain one or more “Collection Accounts”, held in trust for the benefit of the Trustee and the Certificateholders.  On behalf of the Trust Fund, the Servicer shall deposit or cause to be deposited in the Collection Account on a daily basis and in no event later than two Business Days after receipt, as and when received or as otherwise required hereunder, the following payments and collections received or made by it on or subsequent to the Cut-off Date other than amounts attributable to a Due Date on or prior to the Cut-off Date:

(i)         all payments on account of principal, including Principal Prepayments, on the Mortgage Loans;

(ii)         all payments on account of interest (net of the related Servicing Fee) on each Mortgage Loan;

(iii)        all Insurance Proceeds and Liquidation Proceeds (other than proceeds collected in respect of any particular REO Property) and all Subsequent Recoveries with respect to the Mortgage Loans;

(iv)        any amounts required to be deposited by the Servicer pursuant to Section 3.10 in connection with any losses realized on Permitted Investments with respect to funds held in the Collection Account;

(v)        any amounts required to be deposited by the Servicer pursuant to the second paragraph of Section 3.11(a) in respect of any blanket policy deductibles;

(vi)        any Purchase Price or Substitution Shortfall Amount delivered to the Servicer and all proceeds (net of amounts payable or reimbursable to the Servicer, the Master Servicer, the Trustee, the Custodian or the Securities Administrator) of Mortgage Loans purchased in accordance with Section 2.03, Section 3.13 or Section 10.01; and

(vii)       any Prepayment Charges collected by the Servicer in connection with the Principal Prepayment of any of the Mortgage Loans or amounts required to be deposited by the Servicer in connection with a breach of its obligations under Section 2.05 with respect to the waiver of Prepayment Charges or any amounts paid by the Seller in respect of any waived Prepayment Charges as described in Section 3.01.

The foregoing requirements for deposit in the Collection Account shall be exclusive, it being understood and agreed that, without limiting the generality of the foregoing, payments in the nature of late payment charges, assumption fees or other similar fees need not be deposited by the Servicer in the Collection Account and may be retained by the Servicer as additional compensation.  In the event the Servicer shall deposit in the Collection Account any amount not required to be deposited therein, it may at any time withdraw such amount from the Collection Account, any provision herein to the contrary notwithstanding.

 

 

(b)        On behalf of the Trust Fund, the Securities Administrator shall establish and maintain one or more accounts (such account or accounts, the “Distribution Account”), held in trust for the benefit of the Trustee, the Trust Fund and the Certificateholders. On behalf of the Trust Fund, the Servicer shall deliver to the Securities Administrator in immediately available funds for deposit in the Distribution Account on or before 3:00 p.m. New York time on the Servicer Remittance Date, that portion of the Available Distribution Amount (calculated without regard to the references in clause (2) of the definition thereof to amounts that may be withdrawn from the Distribution Account) for the related Distribution Date then on deposit in the Collection Account and the amount of all Prepayment Charges collected by the Servicer in connection
with the Principal Prepayment of any of the Mortgage Loans (including any Servicer Prepayment Charge Amount) then on deposit in the Collection Account and the amount of any funds reimbursable to an Advance Financing Person pursuant to Section 3.25.  If the balance on deposit in a Collection Account exceeds $100,000 as of the commencement of business on any Business Day and the Collection Account constitutes an Eligible Account solely pursuant to clause (ii) of the definition of “Eligible Account,” the Servicer shall, on or before 5:00 p.m. New York time on such Business Day, withdraw from the Collection Account any and all amounts payable or reimbursable to the Depositor, the Servicer, the Trustee, the Master Servicer, the Securities Administrator or the Seller pursuant to Section 3.09 and shall pay such amounts to the Persons entitled thereto or shall establish a separate Collection Account (which shall also be an Eligible Account) and withdraw from the existing
Collection Account the amount on deposit therein in excess of $100,000 and deposit such excess in the newly created Collection Account.

With respect to any remittance received by the Securities Administrator after the 18th day of the month, or if the 18th day is not a Business Day, the immediately following Business Day, the Securities Administrator shall send written notice thereof to the Servicer. The Servicer shall pay to the Securities Administrator interest on any such late payment by the Servicer at an annual rate equal to Prime Rate (as defined in The Wall Street Journal) plus one percentage point, but in no event greater than the maximum amount permitted by applicable law.  Such interest shall be paid by the Servicer to the Securities Administrator on the date such late payment is made and shall cover the period commencing with the day following such
18th day, or if the 18th day is not a Business Day, the day immediately following Business Day and ending with the Business Day on which such payment is made, both inclusive.  The payment by the Servicer of any such interest, or the failure of the Securities Administrator to notify the Servicer of such interest, shall not be deemed an extension of time for payment or a waiver of any Event of Default by the Servicer.

(c)        Funds in the Collection Account and funds in the Distribution Account may be invested in Permitted Investments in accordance with the provisions set forth in Section 3.10.  The Servicer shall give notice to the Trustee, the Securities Administrator and the Master Servicer of the location of the Collection Account when established and prior to any change thereof.  The Securities Administrator shall give notice to the Servicer and the Depositor of the location of the Distribution Account when established and prior to any change thereof.

(d)        Funds held in the Collection Account at any time may be delivered by the Servicer in immediately available funds to the Securities Administrator for deposit in the Distribution Account.  In the event the Servicer shall deliver to the Securities Administrator for deposit in the Distribution Account any amount not required to be deposited therein, it may at 

 

any time request that the Securities Administrator withdraw such amount from the Distribution Account and remit to it any such amount, any provision herein to the contrary notwithstanding.  In no event shall the Securities Administrator incur liability as a result of withdrawals from the Distribution Account at the direction of the Servicer in accordance with the immediately preceding sentence.  In addition, the Servicer shall deliver to the Securities Administrator no later than the Servicer Remittance Date the amounts set forth in clauses (i) through (iv) below:

	
            (i)
 	
            any P&I Advances, as required pursuant to Section 5.03;
 

(ii)           any amounts required to be deposited pursuant to Section 3.21(d) or 3.21(f) in connection with any related REO Property;

(iii)          any amounts to be paid in connection with a purchase of Mortgage Loans and REO Properties pursuant to Section 10.01; and

(iv)         any amounts required to be deposited pursuant to Section 3.22 in connection with any Prepayment Interest Shortfalls.

SECTION 3.09.        Withdrawals from the Collection Account and Distribution Account.

(a)        The Servicer shall, from time to time, make withdrawals from the Collection Account for any of the following purposes or as described in Section 5.03:

(i)         to remit to the Securities Administrator for deposit in the Distribution Account the amounts required to be so remitted pursuant to Section 3.08(b) or permitted to be so remitted pursuant to the first sentence of Section 3.08(d);

(ii)         subject to Section 3.13(d), to reimburse itself (including any successor servicer) for P&I Advances made by it, but only to the extent of amounts received which represent Late Collections (net of the related Servicing Fees) of Monthly Payments on related Mortgage Loans with respect to which such P&I Advances were made in accordance with the provisions of Section 5.03;

(iii)        subject to Section 3.13(d), to pay itself any unpaid Servicing Fees and reimburse itself any unreimbursed Servicing Advances with respect to each related Mortgage Loan, but only to the extent of any Liquidation Proceeds and Insurance Proceeds received with respect to such related Mortgage Loan;

(iv)        to pay to itself as servicing compensation (in addition to the Servicing Fee) on the Servicer Remittance Date any interest or investment income earned on funds deposited in the Collection Account;

(v)        to pay to itself or the Seller, as the case may be, with respect to each related Mortgage Loan that has previously been purchased or replaced pursuant to Section 2.03 or Section 3.13(c) all amounts received thereon not included in the Purchase Price or the Substitution Shortfall Amount;

 

 

	
            (vi)
 	
            to reimburse itself (including any successor to the Servicer) for
 

(A)              any P&I Advance or Servicing Advance previously made by it which the Servicer has determined to be a Nonrecoverable P&I Advance or a Nonrecoverable Servicing Advance in accordance with the provisions of Section 5.03; or

(B)              any unpaid Servicing Fees to the extent not recoverable from Liquidation Proceeds, Insurance Proceeds or other amounts received with respect to the related Mortgage Loan under Section 3.08(a)(iii); or

(C)              any P&I Advance or Servicing Advance made with respect to a delinquent Mortgage Loan which Mortgage Loan has been modified by the Servicer in accordance with the terms of this Agreement; provided that the Servicer shall only reimburse itself for such P&I Advances and Servicing Advances at the time of such modification.

(vii)       to reimburse itself or the Depositor for expenses incurred by or reimbursable to itself or the Depositor, as the case may be, pursuant to Section 3.01 or Section 7.03;

(viii)      to reimburse itself or the Trustee, as the case may be, for expenses reasonably incurred in respect of the breach or defect giving rise to the purchase obligation under Section 2.03 of this Agreement that were included in the Purchase Price of the related Mortgage Loan, including any expenses arising out of the enforcement of the purchase obligation;

(ix)        to pay, or to reimburse itself for advances in respect of, expenses incurred in connection with any related Mortgage Loan pursuant to Section 3.13(b); and

(x)        to clear and terminate the Collection Account pursuant to Section 10.01.

The Servicer shall keep and maintain separate accounting, on a Mortgage Loan by Mortgage Loan basis, for the purpose of justifying any withdrawal from the Collection Account, to the extent held by or on behalf of it, pursuant to subclauses (ii), (iii), (v), (vi), (vii), (viii) and (ix) above.  The Servicer shall provide written notification to the Trustee and the Master Servicer on or prior to the next succeeding Servicer Remittance Date, upon making any withdrawals from the Collection Account pursuant to subclauses (vi) and (vii) above.

 

 

(b)        The Securities Administrator shall, from time to time, make withdrawals from the Distribution Account, for any of the following purposes, without priority:

(i)            to make distributions to Certificateholders in accordance with Section 5.01;

(ii)           to pay to itself, the Custodian and the Master Servicer amounts to which it is entitled pursuant to Section 9.05 or any other provision of this Agreement and any  Extraordinary Trust Fund Expenses;

	
            (iii)
 	
            to reimburse itself or the Master Servicer pursuant to Section 8.02;
 

(iv)          to pay any Net Swap Payment or Swap Termination Payment payable to the Supplemental Interest Trust (unless the Swap Provider is the sole Defaulting Party or the sole Affected Party (as defined in the Swap Agreement)) owed to the Swap Provider;

(v)           to pay any amounts in respect of taxes pursuant to Section 11.01(g)(v);

	
            (vi)
 	
            to pay the Master Servicing Fee to the Master Servicer; and
 

(vii)         to clear and terminate the Distribution Account pursuant to Section 10.01.

	
            SECTION 3.10.
 	
            Investment of Funds in the Investment Accounts.
 

(a)        The Servicer may direct, by means of written directions (which may be standing directions), any depository institution maintaining the Collection Account to invest the funds in the Collection Account (for purposes of this Section 3.10, an “Investment Account”) in one or more Permitted Investments bearing interest or sold at a discount, and maturing, unless payable on demand, (i) no later than the Business Day immediately preceding the date on which such funds are required to be withdrawn from such account pursuant to this Agreement, if a Person other than the Securities Administrator is the obligor thereon, and (ii) no later than the date on which such funds are required to be withdrawn from such account pursuant to this Agreement, if the Securities Administrator is the obligor on such Permitted Investment.  Amounts in the
Distribution Account may be invested in Permitted Investments as directed in writing by the Servicer, during the period commencing with the related Servicer Remittance Date and ending on the 18th day of the month of the related Servicer Remittance Date or, if the 18th day is not a Business Day, the immediately following Business Day, and thereafter, the Master Servicer, and maturing, unless payable on demand, (i) no later than the Business Day immediately preceding the date on which such funds are required to be withdrawn from such account pursuant to this Agreement, if a Person other than the Securities Administrator is the obligor thereon, and (ii) no later than the date on which such funds are required to be withdrawn from such account pursuant to this Agreement, if the Securities Administrator is the obligor thereon.  All such Permitted Investments shall be held to maturity,
unless payable on demand.  Any investment of funds shall be made in the name of the Trustee (in its capacity as such) or in the name of a nominee of the Trustee.  The Securities Administrator shall be entitled to sole 

 

possession over each such investment in the Distribution Account and, subject to subsection (b) below, the income thereon, and any certificate or other instrument evidencing any such investment shall be delivered directly to the Securities Administrator or its agent, together with any document of transfer necessary to transfer title to such investment to the Trustee or its nominee.  In the event amounts on deposit in the Collection Account are at any time invested in a Permitted Investment payable on demand, the party with investment discretion over such Investment Account shall:

(x)               consistent with any notice required to be given thereunder, demand that payment thereon be made on the last day such Permitted Investment may otherwise mature hereunder in an amount equal to the lesser of (1) all amounts then payable thereunder and (2) the amount required to be withdrawn on such date; and

(y)               demand payment of all amounts due thereunder promptly upon receipt by such party of written notice from the Servicer that such Permitted Investment would not constitute a Permitted Investment in respect of funds thereafter on deposit in the Investment Account.

(b)        All income and gain realized from the investment of funds deposited in the Collection Account shall be for the benefit of the Servicer and shall be subject to its withdrawal in accordance with Section 3.09. The Servicer shall deposit in the Collection Account the amount of any loss incurred in respect of any such Permitted Investment made with funds in such account immediately upon realization of such loss. All earnings and gain realized from the investment of funds deposited in the Distribution Account shall be for the benefit of the Servicer up to but not including the 18th day of the month of the Servicer Remittance Date (or if such day is not a Business Day, the immediately following Business Day), and shall be remitted by the Securities Administrator to the Servicer within two
Business Days of receipt, and thereafter for the benefit of the Master Servicer.  The Servicer or the Master Servicer, as applicable, shall remit from its own funds for deposit into the Distribution Account the amount of any loss incurred on Permitted Investments in the Distribution Account. 

(c)        Except as otherwise expressly provided in this Agreement, if any default occurs in the making of a payment due under any Permitted Investment, or if a default occurs in any other performance required under any Permitted Investment, the Trustee may and, subject to Section 9.01 and Section 9.02(a)(v), shall, at the written direction of the Servicer, take such action as may be appropriate to enforce such payment or performance, including the institution and prosecution of appropriate proceedings.

(d)        The Trustee, the Master Servicer or their respective Affiliates are permitted to receive additional compensation that could be deemed to be in the Trustee’s or the Master Servicer’s economic self-interest for (i) serving as investment adviser, administrator, shareholder servicing agent, custodian or sub-custodian with respect to certain of the Permitted Investments, (ii) using Affiliates to effect transactions in certain Permitted Investments and (iii) effecting transactions in certain Permitted Investments.  Such compensation shall not be considered an amount that is reimbursable or payable to the Trustee or the Master Servicer 

 

pursuant to Section 3.09 or 3.10 or otherwise payable in respect of Extraordinary Trust Fund Expenses.  Such additional compensation shall not be an expense of the Trust Fund.

SECTION 3.11.        Maintenance of Hazard Insurance, Errors and Omissions and Fidelity Coverage and Primary Mortgage Insurance.

(a)        The terms of each Mortgage Note require the related Mortgagor to maintain fire, flood and hazard insurance policies. To the extent such policies are not maintained, the Servicer shall cause to be maintained for each Mortgaged Property fire and hazard insurance with extended coverage as is customary in the area where the Mortgaged Property is located in an amount which is at least equal to the lesser of the current principal balance of the related Mortgage Loan and the amount necessary to compensate fully for any damage or loss to the improvements which are a part of such property on a replacement cost basis, in each case in an amount not less than such amount as is necessary to avoid the application of any coinsurance clause contained in the related hazard insurance policy. The Servicer shall also cause to be maintained fire and hazard
insurance on each REO Property with extended coverage as is customary in the area where the Mortgaged Property is located in an amount which is at least equal to the lesser of (i) the maximum insurable value of the improvements which are a part of such property and (ii) the outstanding principal balance of the related Mortgage Loan at the time it became an REO Property.  The Servicer will comply in the performance of this Agreement with all reasonable rules and requirements of each insurer under any such hazard policies. Any amounts to be collected by the Servicer under any such policies (other than amounts to be applied to the restoration or repair of the property subject to the related Mortgage or amounts to be released to the Mortgagor in accordance with Accepted Servicing Practices, subject to the terms and conditions of the related Mortgage and Mortgage Note) shall be deposited in the Collection Account, subject to withdrawal pursuant to Section 3.09, if received in respect
of a Mortgage Loan, or in the REO Account, subject to withdrawal pursuant to Section 3.21, if received in respect of an REO Property. Any cost incurred by the Servicer in maintaining any such insurance shall not, for the purpose of calculating distributions to Certificateholders, be added to the unpaid principal balance of the related Mortgage Loan, notwithstanding that the terms of such Mortgage Loan so permit. It is understood and agreed that no earthquake or other additional insurance is to be required of any Mortgagor other than pursuant to such applicable laws and regulations as shall at any time be in force and as shall require such additional insurance. If the Mortgaged Property or REO Property is at any time in an area identified in the Federal Register by the Federal Emergency Management Agency as having special flood hazards, the Servicer will cause to be maintained a flood insurance policy in respect thereof. Such flood insurance shall be in an amount equal to the
lesser of (i) the unpaid principal balance of the related Mortgage Loan and (ii) the maximum amount of such insurance available for the related Mortgaged Property under the national flood insurance program (assuming that the area in which such Mortgaged Property is located is participating in such program).

In the event that the Servicer shall obtain and maintain a blanket policy with an insurer having a General Policy Rating of B:VI or better in Best’s Key Rating Guide or otherwise acceptable to Fannie Mae or Freddie Mac insuring against hazard losses on all of the Mortgage Loans, it shall conclusively be deemed to have satisfied its obligations to cause fire and hazard insurance to be maintained on the Mortgaged Properties, it being understood and agreed that such policy may contain a deductible clause, in which case the Servicer shall, in the 

 

event that there shall not have been maintained on the related Mortgaged Property or REO Property a policy complying with the first two sentences of this Section 3.11, and there shall have been one or more losses which would have been covered by such policy, deposit to the Collection Account from its own funds the amount not otherwise payable under the blanket policy because of such deductible clause. In connection with its activities as administrator and servicer of the Mortgage Loans, the Servicer agrees to prepare and present, on behalf of itself, the Trustee, the Trust Fund, the Certificateholders, claims under any such blanket policy in a timely fashion in accordance with the terms of such policy.

(b)        The Servicer shall keep in force during the term of this Agreement a policy or policies of insurance covering errors and omissions for failure in the performance of its respective obligations under this Agreement, which policy or policies shall be in such form and amount that would meet the requirements of Fannie Mae or Freddie Mac if it were the purchaser of the Mortgage Loans, unless the Servicer, has obtained a waiver of such requirements from Fannie Mae or Freddie Mac.  The Servicer shall also maintain a fidelity bond in the form and amount that would meet the requirements of Fannie Mae or Freddie Mac, unless the Servicer, has obtained a waiver of such requirements from Fannie Mae or Freddie Mac.  The Servicer shall be deemed to have complied with this provision if an Affiliate of the Servicer, has such errors and omissions and
fidelity bond coverage and, by the terms of such insurance policy or fidelity bond, the coverage afforded thereunder extends to the Servicer.  Upon request from the Trustee, the Servicer shall cause to be delivered proof of coverage of the fidelity bond and errors and omissions policy and a statement from the surety and the insurer that the surety and insurer shall use best efforts to notify the Trustee within thirty (30) days prior to such fidelity bond and errors and omissions policy’s termination or material modification.

(c)        The Servicer shall take no action that would result in noncoverage under any applicable primary mortgage insurance policy of any loss which, but for the actions of the Servicer would have been covered thereunder.  The Servicer shall use its best efforts to keep in force and effect any applicable primary mortgage insurance policy and, to the extent that the related Mortgage Loan requires the Mortgagor to maintain such insurance, any other primary mortgage insurance applicable to any Mortgage Loan. Except as required by applicable law or the related Mortgage Loan Documents, the Servicer shall not cancel or refuse to renew any such primary mortgage insurance policy that is in effect at the date of the initial issuance of the related Mortgage Note and is required to be kept in force hereunder.

The Servicer agrees to present on behalf of the Trustee and the Certificateholders claims to the applicable insurer under any primary mortgage insurance policies and, in this regard, to take such reasonable action as shall be necessary to permit recovery under any primary mortgage insurance policies respecting defaulted Mortgage Loans. Pursuant to Section 3.08, any amounts collected by the Servicer under any primary mortgage insurance policies shall be deposited in the Collection Account, subject to withdrawal pursuant to Section 3.09.  Notwithstanding any provision to the contrary, the Servicer shall have no responsibility with respect to a primary mortgage insurance policy unless the Servicer has been made aware of such policy, as reflected on the Mortgage Loan Schedule or otherwise and have been provided with adequate information to administer such policy.  

 

 

SECTION 3.12.        Enforcement of Due-on-Sale Clauses; Assumption Agreements

The Servicer shall, to the extent it has knowledge of any conveyance of any Mortgaged Property by a Mortgagor (whether by absolute conveyance or by contract of sale, and whether or not the Mortgagor remains or is to remain liable under the Mortgage Note and/or the Mortgage), exercise its rights to accelerate the maturity of such Mortgage Loan under the “due-on-sale” clause, if any, applicable thereto; provided, however, that the Servicer shall not exercise any such rights if prohibited by law from doing so. If the Servicer reasonably believes that it is unable under applicable law to enforce such “due-on-sale” clause, or if any of the other conditions set forth in the proviso to the preceding sentence apply, the Servicer shall make reasonable efforts to enter into an assumption and modification agreement from or with the person to whom such property has been conveyed or
is proposed to be conveyed, pursuant to which such person becomes liable under the Mortgage Note and, to the extent permitted by applicable state law, the Mortgagor remains liable thereon. The Servicer is also authorized to enter into a substitution of liability agreement with such person, pursuant to which the original Mortgagor is released from liability and such person is substituted as the Mortgagor and becomes liable under the Mortgage Note, provided that no such substitution shall be effective unless such person satisfies the then current underwriting criteria of the Servicer for mortgage loans similar to the Mortgage Loans. In connection with any assumption or substitution, the Servicer shall apply such underwriting standards and follow such practices and procedures as shall be normal and usual in its general mortgage servicing activities and as it applies to other mortgage loans owned solely by it. The Servicer shall neither take nor enter into any assumption and modification
agreement, however, unless (to the extent practicable in the circumstances) it shall have received confirmation, in writing, of the continued effectiveness of any applicable hazard insurance policy. Any fee collected by the Servicer in respect of an assumption or substitution of liability agreement will be retained by the Servicer as additional servicing compensation. In connection with any such assumption, no material term of the Mortgage Note (including but not limited to the related Mortgage Rate and the amount of the Monthly Payment) may be amended or modified, except as otherwise required pursuant to the terms thereof. The Servicer shall notify the Trustee (or the Custodian) that any such substitution or assumption agreement has been completed by forwarding to the Trustee (or the Custodian) the executed original of such substitution or assumption agreement, which document shall be added to the related Mortgage File and shall, for all purposes, be considered a part of such
Mortgage File to the same extent as all other documents and instruments constituting a part thereof.

Notwithstanding the foregoing paragraph or any other provision of this Agreement, the Servicer shall not be deemed to be in default, breach or any other violation of its obligations hereunder by reason of any assumption of a Mortgage Loan by operation of law or by the terms of the Mortgage Note or any assumption which the Servicer may be restricted by law from preventing, for any reason whatever. For purposes of this Section 3.12, the term “assumption” is deemed to also include a sale (of the Mortgaged Property) subject to the Mortgage that is not accompanied by an assumption or substitution of liability agreement.

 

 

	
            SECTION 3.13.
 	
            Realization Upon Defaulted Mortgage Loans.
 

(a)        The Servicer shall use its best efforts, consistent with Accepted Servicing Practices, to foreclose upon or otherwise comparably convert the ownership of properties securing such of the Mortgage Loans as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 3.06.  The Servicer shall be responsible for all costs and expenses incurred by it in any such proceedings; provided, however, that such costs and expenses will be recoverable as Servicing Advances by the Servicer as contemplated in Sections 3.09 and 3.21.  The foregoing is subject to the provision that, in any case in which a Mortgaged Property shall have suffered damage from an Uninsured Cause, the Servicer shall not be required to expend its own funds toward the restoration of such
property unless it shall determine in its discretion that such restoration will increase the proceeds of liquidation of the related Mortgage Loan after reimbursement to itself for such expenses.  

(b)        Notwithstanding the foregoing provisions of this Section 3.13 or any other provision of this Agreement, with respect to any Mortgage Loan as to which the Servicer has received actual notice of, or has actual knowledge of, the presence of any toxic or hazardous substance on the related Mortgaged Property, the Servicer shall not, on behalf of the Trust Fund, either (i) obtain title to such Mortgaged Property as a result of or in lieu of foreclosure or otherwise, or (ii) otherwise acquire possession of, or take any other action with respect to, such Mortgaged Property, if, as a result of any such action, the Trust Fund, the Trustee or the Certificateholders would be considered to hold title to, to be a “mortgagee-in-possession” of, or to be an “owner” or “operator” of such Mortgaged Property within the
meaning of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended from time to time, or any comparable law, unless the Servicer has also previously determined, based on its reasonable judgment and a prudent report prepared by an Independent Person who regularly conducts environmental audits using customary industry standards, that:

(1)               such Mortgaged Property is in compliance with applicable environmental laws or, if not, that it would be in the best economic interest of the Trust Fund to take such actions as are necessary to bring the Mortgaged Property into compliance therewith; and

(2)               there are no circumstances present at such Mortgaged Property relating to the use, management or disposal of any hazardous substances, hazardous materials, hazardous wastes or petroleum-based materials for which investigation, testing, monitoring, containment, clean-up or remediation could be required under any federal, state or local law or regulation, or that if any such materials are present for which such action could be required, that it would be in the best economic interest of the Trust Fund to take such actions with respect to the affected Mortgaged Property.

The cost of the environmental audit report contemplated by this Section 3.13 shall be advanced by the Servicer, subject to the Servicer’s right to be reimbursed therefor from the Collection Account as provided in Section 3.09(a)(ix), such right of reimbursement being prior 

 

to the rights of Certificateholders to receive any amount in the Collection Account received in respect of the affected Mortgage Loan or other Mortgage Loans.

If the Servicer determines, as described above, that it is in the best economic interest of the Trust Fund to take such actions as are necessary to bring any such Mortgaged Property into compliance with applicable environmental laws, or to take such action with respect to the containment, clean-up or remediation of hazardous substances, hazardous materials, hazardous wastes, or petroleum-based materials affecting any such Mortgaged Property, then the Servicer shall take such action as it deems to be in the best economic interest of the Trust Fund.  The cost of any such compliance, containment, cleanup or remediation shall be advanced by the Servicer, subject to its right to be reimbursed therefor from the Collection Account as provided in Sections 3.09(a)(iii) or 3.09(a)(ix), such right of reimbursement being prior to the rights of Certificateholders to receive any amount in the Collection
Account received in respect of the affected Mortgage Loan or other Mortgage Loans.

(c)        The Servicer (or an affiliate of the Servicer) may, at its option, repurchase a Mortgage Loan or REO Property which becomes ninety (90) or more days delinquent, for which the Servicer has accepted a deed in lieu of foreclosure or which the Servicer determines in good faith will otherwise become subject to foreclosure proceedings (evidence of such determination to be delivered in writing to the Trustee and the Master Servicer in form and substance satisfactory to the Servicer, the Trustee and the Master Servicer prior to purchase).  Prior to repurchase pursuant to this Section 3.13, the Servicer shall be required to continue to make P&I Advances pursuant to Section 5.03.  The Servicer shall purchase such (i) delinquent Mortgage Loan at a price equal to the Stated Principal Balance of the Mortgage Loan plus accrued interest thereon at
the Mortgage Rate from the date to which interest has last been paid to the Trust Fund to the date of purchase plus any unreimbursed Servicing Advances and P&I Advances or (ii) REO Property at its fair market value as determined in good faith by the Servicer.  Any such repurchase of a Mortgage Loan or REO Property pursuant to this Section 3.13 shall be accomplished by delivery to the Securities Administrator for deposit in the Distribution Account of the amount of the purchase price.  The Trustee, upon receipt of written certification from the Servicer of such deposit, shall execute and deliver such instruments of transfer or assignment, in each case without recourse, representation or warranty, as the Servicer shall furnish and as shall be necessary to vest in the Servicer title to any Mortgage Loan released pursuant to this Section 3.13.

Notwithstanding the preceding paragraph, in the event that the Servicer or an affiliate thereof is the owner of more than 50% of a Class of Certificates which is then currently in a first loss position and such party is deemed to be the "Primary Beneficiary" as defined in the US Financial Accounting Standards Board Interpretation Number 40 (“FIN 40”), as evidenced by an Officer’s Certificate to be delivered to the Trustee and the Master Servicer, the Servicer (or an affiliate of the Servicer) may, at its option, repurchase a Mortgage Loan or REO Property which becomes 120 or more days delinquent or for which the Servicer has accepted a deed in lieu of foreclosure, during the period commencing on the first day of the calendar quarter succeeding the calendar quarter in which the Initial Delinquency Date occurred with respect to such Mortgage Loan and ending on the last
Business Day of such calendar quarter.  If the Servicer (or an affiliate of the Servicer) does not exercise its purchase right with respect to a Mortgage Loan during the period specified in the preceding sentence, such Mortgage Loan shall 

 

thereafter again become eligible for purchase pursuant to the preceding sentence only after the Mortgage Loan ceases to be 120 days or more delinquent and thereafter becomes 120 days delinquent again.  The “Initial Delinquency Date” of a Mortgage Loan shall mean the date on which the Mortgage Loan first became 120 days delinquent.  Prior to repurchase pursuant to this Section 3.12, the Servicer shall be required to continue to make P&I pursuant to Section 5.03.  The Servicer shall not use any procedure in selecting Mortgage Loans to be repurchased which is materially adverse to the interests of the Certificateholders.  The Servicer shall purchase such (i) delinquent Mortgage Loan at a price equal to the Stated Principal Balance of the Mortgage Loan plus accrued interest thereon at the Mortgage Rate from the date to which interest has last been paid to the Trust Fund to the date of purchase
plus any unreimbursed Servicing Advances and P&I Advances or (ii) REO Property at its fair market value as determined in good faith by the Servicer.  Any such repurchase of a Mortgage Loan or REO Property pursuant to this Section 3.13 shall be accomplished by delivery to the Securities Administrator for deposit in the Distribution Account of the amount of the purchase price.  The Trustee shall immediately effectuate the conveyance of such delinquent Mortgage Loan or REO Property to the Servicer to the extent necessary, including the prompt delivery of all documentation to the Servicer.

(d)        Proceeds received in connection with any Final Recovery Determination, as well as any recovery resulting from a partial collection of Insurance Proceeds or Liquidation Proceeds, in respect of any Mortgage Loan, will be applied in the following order of priority: first, to reimburse the Servicer for any related unreimbursed Servicing Advances and P&I Advances, pursuant to Section 3.09(a)(ii) or (a)(iii); second, to accrued and unpaid interest on the Mortgage Loan, to the date of the Final Recovery Determination, or to the Due Date prior to the Distribution Date on which such amounts are to be distributed if not in connection with a Final Recovery Determination; and third, as a recovery of principal of the Mortgage Loan. If the amount of the recovery so allocated to interest is less than the full amount of accrued and unpaid
interest due on such Mortgage Loan, the amount of such recovery will be allocated by the Servicer as follows: first, to unpaid Servicing Fees; and second, to the balance of the interest then due and owing. The portion of the recovery so allocated to unpaid Servicing Fees shall be reimbursed to the Servicer pursuant to Section 3.09(a)(iii). The portion of the recovery allocated to interest (net of unpaid Servicing Fees) and the portion of the recovery allocated to principal of the Mortgage Loan shall be applied as follows: first, to reimburse the Servicer for any related unreimbursed Servicing or P&I Advances in accordance with Section 3.09(a)(ii) and any other amounts reimbursable to the Servicer pursuant to Section 3.09, and second, as part of the amounts to be transferred to the Distribution Account in accordance with Section 3.08(b).

	
            SECTION 3.14.
 	
            Trustee to Cooperate; Release of Mortgage Files.
 

(a)        Upon becoming aware of the payment in full of any Mortgage Loan, or the receipt by the Servicer of a notification that payment in full has been escrowed in a manner customary for such purposes for payment to Certificateholders on the next Distribution Date, the Servicer will promptly furnish to the Custodian, on behalf of the Trustee, two copies of a request for release substantially in the form attached to the Custodial Agreement signed by a Servicing Officer or in a mutually agreeable electronic format which will, in lieu of a signature on its face, originate from a Servicing Officer (which certification shall include a statement to the effect that all amounts received in connection with such payment that are required to be deposited in the Collection Account have been or will be so deposited) and shall request that the Custodian, on 

 

behalf of the Trustee, deliver to the Servicer the related Mortgage File. Upon receipt of such certification and request, the Custodian, on behalf of the Trustee, shall within three (3) Business Days release the related Mortgage File to the Servicer and the Trustee and the Custodian shall have no further responsibility with regard to such Mortgage File. Upon any such payment in full, the Servicer is authorized, to give, as agent for the Trustee, as the mortgagee under the Mortgage that secured the Mortgage Loan, an instrument of satisfaction (or assignment of mortgage without recourse) regarding the Mortgaged Property subject to the Mortgage, which instrument of satisfaction or assignment, as the case may be, shall be delivered to the Person or Persons entitled thereto against receipt therefor of such payment, it being understood and agreed that no expenses incurred in connection with such instrument of
satisfaction or assignment, as the case may be, shall be chargeable to the Collection Account.

(b)        From time to time and as appropriate for the servicing or foreclosure of any Mortgage Loan, the Trustee shall execute such documents as shall be prepared and furnished to the Trustee by the Servicer (in form reasonably acceptable to the Trustee) and as are necessary to the prosecution of any such proceedings. The Custodian, on behalf of the Trustee, shall, upon the request of the Servicer, and delivery to the Custodian, on behalf of the Trustee, of two copies of a request for release signed by a Servicing Officer substantially in the form attached to the Custodial Agreement (or in a mutually agreeable electronic format which will, in lieu of a signature on its face, originate from a Servicing Officer), release within three (3) Business Days the related Mortgage File held in its possession or control to the Servicer. Such trust receipt
shall obligate the Servicer to return the Mortgage File to the Custodian on behalf of the Trustee, when the need therefor by the Servicer no longer exists unless the Mortgage Loan shall be liquidated, in which case, upon receipt of a certificate of a Servicing Officer similar to that hereinabove specified, the Mortgage File shall be released by the Custodian, on behalf of the Trustee, to the Servicer.

Notwithstanding the foregoing, in connection with a Principal Prepayment in full of any Mortgage Loan, the Master Servicer may request release of the related Mortgage File from the Custodian, in accordance with the provisions of the Custodial Agreement, in the event the Servicer fails to do so.

Upon written certification of a Servicing Officer, the Trustee shall execute and deliver to the Servicer, any court pleadings, requests for trustee’s sale or other documents prepared and delivered to the Trustee and reasonably acceptable to it and necessary to the foreclosure or trustee’s sale in respect of a Mortgaged Property or to any legal action brought to obtain judgment against any Mortgagor on the Mortgage Note or Mortgage or to obtain a deficiency judgment, or to enforce any other remedies or rights provided by the Mortgage Note or Mortgage or otherwise available at law or in equity. Each such certification shall include a request that such pleadings or documents be executed by the Trustee and a statement as to the reason such documents or pleadings are required and that the execution and delivery thereof by the Trustee will not invalidate or otherwise affect the lien of
the Mortgage, except for the termination of such a lien upon completion of the foreclosure or trustee’s sale. So long as no Servicer Event of Default shall have occurred and be continuing, the Servicer shall have the right to execute any and all such court pleadings, requests and other documents as attorney-in-fact for, and on behalf of the Trustee.  Notwithstanding the preceding sentence, the Trustee shall in no way be liable or responsible for the willful malfeasance of the Servicer, or for any wrongful or 

 

negligent actions taken by the Servicer, while the Servicer is acting in its capacity as attorney-in-fact for and on behalf of the Trustee.

	
            SECTION 3.15.
 	
            Servicing Compensation.
 

As compensation for its activities hereunder, the Servicer shall be entitled to the Servicing Fee with respect to each Mortgage Loan serviced by it payable solely from payments of interest in respect of such Mortgage Loan, subject to Section 3.22.  In addition, the Servicer shall be entitled to recover unpaid Servicing Fees out of Insurance Proceeds or Liquidation Proceeds to the extent permitted by Section 3.09(a)(iii) and out of amounts derived from the operation and sale of an REO Property to the extent permitted by Section 3.21. The right to receive the Servicing Fee may not be transferred in whole or in part except in connection with the transfer of all of the Servicer’s responsibilities and obligations under this Agreement to the extent permitted herein.

Additional servicing compensation in the form of assumption fees, late payment charges, customary real estate referral fees, insufficient funds charges and other miscellaneous fees (other than Prepayment Charges) and ancillary income shall be retained by the Servicer only to the extent such fees or charges are received by the Servicer.  The Servicer shall also be entitled pursuant to Section 3.09(a)(iv) to withdraw from the Collection Account and pursuant to Section 3.21(b) to withdraw from any REO Account, as additional servicing compensation, interest or other income earned on deposits therein, subject to Section 3.10.  The Servicer shall be required to pay all expenses incurred by it in connection with its servicing activities hereunder and shall not be entitled to reimbursement therefor except as specifically provided herein.

	
            SECTION 3.16.
 	
            Collection Account Statements.
 

Not later than fifteen (15) days after each Distribution Date, the Servicer shall forward to the Master Servicer and the Securities Administrator, the Trustee and the Depositor, a statement prepared by the institution at which the Collection Account is maintained setting forth the status of the Collection Account as of the close of business on such Distribution Date and showing, for the period covered by such statement, the aggregate amount of deposits into and withdrawals from the Collection Account of each category of deposit specified in Section 3.08(a) and each category of withdrawal specified in Section 3.09.  Copies of such statement and any similar statements provided by the Servicer shall be provided by the Securities Administrator to any Certificateholder and to any Person identified to the Securities Administrator as a prospective transferee of a Certificate, upon
request at the expense of the requesting party, provided such statement is delivered by the Servicer to the Securities Administrator.

	
            SECTION 3.17.
 	
            Statement as to Compliance.
 

Not later than March 15th of each calendar year commencing in 2006, the Servicer shall deliver to the Trustee, the Master Servicer and the Depositor an Officers’ Certificate in a form acceptable for filing with the Securities and Exchange Commission as an exhibit to Form 10-K or other required form (upon which the Master Servicer can conclusively rely in connection with its obligations under Section 5.06) stating, as to each signatory thereof, that (i) a review of the activities of the Servicer during the preceding year and of performance 

 

under this Agreement has been made under such officers’ supervision and (ii) to the best of such officer’s knowledge, based on such review, the Servicer has fulfilled all of its obligations in all material respects under this Agreement throughout such year, or, if there has been a default in the fulfillment of any such material obligation, specifying each such default known to such officer and the nature and status thereof. Copies of any such statement shall be provided by the Trustee to any Certificateholder, upon request at the expense of the requesting party, provided such statement is delivered by the Servicer to the Trustee.

	
            SECTION 3.18.
 	
            Independent Public Accountants’ Servicing Report.
 

Not later than March 15th of each calendar year commencing in 2006, the Servicer, at its expense, shall cause a nationally recognized firm of independent certified public accountants to furnish to the Servicer a report in a form acceptable for filing with the Securities and Exchange Commission as an exhibit to Form 10-K or other required form stating that (i) it has obtained a letter of representation regarding certain matters from the management of the Servicer which includes an assertion that the Servicer has complied with certain minimum residential mortgage loan servicing standards, identified in the Uniform Single Attestation Program for Mortgage Bankers established by the Mortgage Bankers Association of America, with respect to the servicing of residential mortgage loans during the most recently completed fiscal year and (ii) on the basis of an examination conducted by such firm in
accordance with standards established by the American Institute of Certified Public Accountants, such representation is fairly stated and such firm has determined that the Servicer has complied in all material respects, subject to such exceptions and other qualifications that may be appropriate. Immediately upon receipt of such report, the Servicer shall furnish a copy of such report to the Master Servicer, the Trustee and each Rating Agency.  Copies of such statement shall be provided by the Trustee to any Certificateholder upon request at the Servicer’s expense, provided that such statement is delivered by the Servicer to the Trustee.

	
            SECTION 3.19.
 	
            Annual Certification.
 

(a)        The Servicer shall deliver to the Master Servicer, on or before March 15th of each calendar year beginning in 2006 (or, if any such day is not a Business Day, the immediately preceding Business Day) or such alternative date reasonably specified by the Master Servicer which shall occur not later than fifteen (15) days prior to the date any Form 10-K is required to be filed with the Commission in connection with the transactions contemplated by this Agreement, a certification in the form attached hereto as Exhibit C.  Such certification shall be signed by the senior officer in charge of servicing of the Servicer.  In addition, the Servicer shall provide such other information with respect to the Mortgage Loans and the servicing and administration thereof within the control of the Servicer which shall be required to enable the Master Servicer
to comply with the reporting requirements of the Exchange Act pursuant to Section 5.06 hereof.

(b)        The Servicer shall indemnify and hold harmless the Master Servicer, the Securities Administrator, the Trustee, the Depositor and their respective officers, directors, agents and affiliates from and against any losses, damages, penalties, fines, forfeitures, reasonable legal fees and related costs, judgments and other costs and expenses arising out of or based upon a breach by the Servicer or any of its officers, directors, agents or affiliates of its 

 

obligations under this Section 3.19 or the Servicer’s negligence, bad faith or willful misconduct in connection therewith.  Such indemnity shall survive the termination or resignation of the parties hereto or the termination of this Agreement. If the indemnification provided for herein is unavailable or insufficient to hold harmless the Master Servicer, the Securities Administrator, the Trustee and the Depositor, then the Servicer agrees that it shall contribute to the amount paid or payable by the Master Servicer, the Securities Administrator, the Trustee and the Depositor as a result of the losses, claims, damages or liabilities of the Master Servicer, the Securities Administrator, the Trustee and the Depositor in such proportion as is appropriate to reflect the relative fault of the Master Servicer, the Securities Administrator, the Trustee and the Depositor on the one hand and the Servicer on
the other in connection with a breach of the Servicer’s obligations under this Section 3.19.

	
            SECTION 3.20.
 	
            Access to Certain Documentation.
 

The Servicer shall provide to the Office of Thrift Supervision, the FDIC, and any other federal or state banking or insurance regulatory authority that may exercise authority over any Certificate Owner, access to the documentation regarding the Mortgage Loans required by applicable laws and regulations.  Such access shall be afforded without charge, but only upon reasonable request and during normal business hours at the offices of the Servicer designated by it.  Nothing in this Section 3.20 shall limit the obligation of the Servicer to comply with any applicable law prohibiting disclosure of information regarding the Mortgagors and the failure of the Servicer to provide access as provided in this Section as a result of such obligation shall not constitute a breach of this Section.  Nothing in this Section 3.20 shall require the Servicer to collect, create, collate or
otherwise generate any information that it does not generate in its usual course of business.  The Servicer shall not be required to make copies of or ship documents to any Person unless provisions have been made for the reimbursement of the costs thereof.  In addition, access to the documentation regarding the Mortgage Loans will be provided to any Certificate Owner, the Trustee and to any Person identified to the Servicer, as a prospective transferee of a Certificate, upon reasonable request during normal business hours at the offices of the Servicer designated by it at the expense of the Person requesting such access.

	
            SECTION 3.21.
 	
            Title, Management and Disposition of REO Property.
 

(a)        The deed or certificate of sale of any REO Property related to a Mortgage Loan shall be taken in the name of the Trustee, or its nominee, on behalf of the Trust Fund and for the benefit of the Certificateholders. The Servicer, on behalf of REMIC I, shall either sell any REO Property by the close of the third calendar year following the calendar year in which REMIC I acquires ownership of such REO Property for purposes of Section 860(a)(8) of the Code or request from the Internal Revenue Service, no later than sixty (60) days before the day on which the three-year grace period would otherwise expire, an extension of the three-year grace period, unless the Servicer had delivered to the Trustee an Opinion of Counsel, addressed to the Trustee and the Depositor, to the effect that the holding by REMIC I of such REO Property subsequent to
three (3) years after its acquisition will not result in the imposition on any Trust REMIC created hereunder of taxes on “prohibited transactions” thereof, as defined in Section 860F of the Code, or cause any Trust REMIC hereunder to fail to qualify as a REMIC under Federal law at any time that any Certificates are outstanding. The Servicer shall manage, conserve, protect and operate each REO Property for the Certificateholders solely for the purpose 

 

of its prompt disposition and sale in a manner which does not cause such REO Property to fail to qualify as “foreclosure property” within the meaning of Section 860G(a)(8) of the Code or result in the receipt by any Trust REMIC created hereunder of any “income from non-permitted assets” within the meaning of Section 860F(a)(2)(B) of the Code, or any “net income from foreclosure property” which is subject to taxation under the REMIC Provisions.

(b)        The Servicer shall segregate and hold all funds collected and received in connection with the operation of any REO Property separate and apart from its own funds and general assets and shall establish and maintain with respect to REO Properties an account held in trust for the Trustee, on behalf of the Trust Fund and for the benefit of the Certificateholders (the “REO Account”), which shall be an Eligible Account. The Servicer shall be permitted to allow the Collection Account to serve as the REO Account, subject to the maintenance of separate ledgers for each REO Property. The Servicer shall be entitled to retain or withdraw any interest income paid on funds deposited in the related REO Account.

(c)        The Servicer shall have full power and authority, subject only to the specific requirements and prohibitions of this Agreement, to do any and all things in connection with any REO Property related to a Mortgage Loan serviced by it as are consistent with the manner in which the Servicer manages and operates similar property owned by it or any of its Affiliates, all on such terms and for such period as the Servicer deems to be in the best interests of Certificateholders. In connection therewith, the Servicer shall deposit, on a daily basis in the REO Account, all revenues received by it with respect to an REO Property related to a Mortgage Loan serviced by it and shall withdraw therefrom funds necessary for the proper operation, management and maintenance of such REO Property including, without limitation:

(i)           all insurance premiums due and payable in respect of such REO Property;

(ii)           all real estate taxes and assessments in respect of such REO Property that may result in the imposition of a lien thereon; and

	
            (iii)
 	
            all costs and expenses necessary to maintain such REO Property.
 

To the extent that amounts on deposit in the REO Account with respect to an REO Property are insufficient for the purposes set forth in clauses (i) through (iii) above with respect to such REO Property, the Servicer shall advance from its own funds such amount as is necessary for such purposes if, but only if, the Servicer would make such advances if the Servicer owned the REO Property and if in the Servicer’s judgment, the payment of such amounts will be recoverable from the rental or sale of the REO Property.

Subject to compliance with applicable laws and regulations as shall at any time be in force, and notwithstanding the foregoing, the Servicer, on behalf of the Trust Fund, shall not:

(i)         enter into, renew or extend any New Lease with respect to any REO Property, if the New Lease by its terms will give rise to any income that does not constitute Rents from Real Property;

 

 

(ii)         permit any amount to be received or accrued under any New Lease other than amounts that will constitute Rents from Real Property;

(iii)        authorize or permit any construction on any REO Property, other than the completion of a building or other improvement thereon, and then only if more than ten percent of the construction of such building or other improvement was completed before default on the related Mortgage Loan became imminent, all within the meaning of Section 856(e)(4)(B) of the Code; or

(iv)        allow any Person to Directly Operate any REO Property on any date more than ninety (90) days after its date of acquisition by the Trust Fund;

unless, in any such case, the Servicer has obtained an Opinion of Counsel, provided to the Servicer and the Trustee, to the effect that such action will not cause such REO Property to fail to qualify as “foreclosure property” within the meaning of Section 860G(a)(8) of the Code at any time that it is held by REMIC I, in which case the Servicer may take such actions as are specified in such Opinion of Counsel.

The Servicer may contract with any Independent Contractor for the operation and management of any REO Property, provided that:

(i)         the terms and conditions of any such contract shall not be inconsistent herewith;

(ii)         any such contract shall require, or shall be administered to require, that the Independent Contractor pay all costs and expenses incurred in connection with the operation and management of such REO Property, including those listed above and remit all related revenues (net of such costs and expenses) to the Servicer as soon as practicable, but in no event later than thirty (30) days following the receipt thereof by such Independent Contractor;

(iii)        none of the provisions of this Section 3.21(c) relating to any such contract or to actions taken through any such Independent Contractor shall be deemed to relieve the Servicer of any of its duties and obligations to the Trustee on behalf of the Trust Fund and for the benefit of the Certificateholders with respect to the operation and management of any such REO Property; and

(iv)        the Servicer shall be obligated with respect thereto to the same extent as if it alone were performing all duties and obligations in connection with the operation and management of such REO Property.

The Servicer shall be entitled to enter into any agreement with any Independent Contractor performing services for it related to its duties and obligations hereunder for indemnification of the Servicer by such Independent Contractor, and nothing in this Agreement shall be deemed to limit or modify such indemnification. The Servicer shall be solely liable for all fees owed by it to any such Independent Contractor, irrespective of whether the Servicer’s compensation pursuant to Section 3.15 is sufficient to pay such fees. Any such agreement shall include a provision that such agreement may be immediately terminated by the Trustee (as 

 

successor servicer) or any other successor servicer (including the Master Servicer) without fee, in the event the Servicer shall for any reason, no longer be the Servicer of the Mortgage Loans (including termination due to a Servicer Event of Default).

(d)        In addition to the withdrawals permitted under Section 3.21(c), the Servicer may from time to time make withdrawals from the REO Account for any REO Property: (i) to pay itself unpaid Servicing Fees in respect of the related Mortgage Loan; and (ii) to reimburse itself or any Sub-Servicer for unreimbursed Servicing Advances and Advances made in respect of such REO Property or the related Mortgage Loan. On the Servicer Remittance Date, the Servicer shall withdraw from each REO Account maintained by it and deposit into the Distribution Account in accordance with Section 3.08(d)(ii), for distribution on the related Distribution Date in accordance with Section 5.01, the income from the related REO Property received during the prior calendar month, net of any withdrawals made pursuant to Section 3.21(c) or this Section 3.21(d).

(e)        Subject to the time constraints set forth in Section 3.21(a), each REO Disposition shall be carried out by the Servicer at such price and upon such terms and conditions as the Servicer shall deem necessary or advisable, as shall be normal and usual in accordance with Accepted Servicing Practices.

(f)         The proceeds from the REO Disposition, net of any amount required by law to be remitted to the Mortgagor under the related Mortgage Loan and net of any payment or reimbursement to the Servicer as provided above, shall be deposited in the Distribution Account in accordance with Section 3.08(d)(ii) on the Servicer Remittance Date in the month following the receipt thereof for distribution on the related Distribution Date in accordance with Section 5.01. Any REO Disposition shall be for cash only (unless changes in the REMIC Provisions made subsequent to the Startup Day allow a sale for other consideration).

(g)        The Servicer shall file information returns (and shall provide a certification of a Servicing Officer to the Master Servicer that such filings have been made) with respect to the receipt of mortgage interest received in a trade or business, reports of foreclosures and abandonments of any Mortgaged Property and cancellation of indebtedness income with respect to any Mortgaged Property as required by Sections 6050H, 6050J and 6050P of the Code, respectively. Such reports shall be in form and substance sufficient to meet the reporting requirements imposed by such Sections 6050H, 6050J and 6050P of the Code.

SECTION 3.22.        Obligations of the Servicer in Respect of Prepayment Interest Shortfalls; Relief Act Interest Shortfalls.

The Servicer shall deliver to the Securities Administrator for deposit into the Distribution Account on or before 5:00 p.m. New York time on the Servicer Remittance Date from its own funds an amount equal to the lesser of (i) the aggregate amount of the Prepayment Interest Shortfalls on the Mortgage Loans for the related Distribution Date resulting solely from voluntary Principal Prepayments in full received by the Servicer during the related Prepayment Period and (ii) fifty percent (50%) of the aggregate Servicing Fee payable to the Servicer on such Distribution Date with respect to the Mortgage Loans.  The Servicer shall not have the right to reimbursement for any amounts remitted to the Securities Administrator in respect of this 

 

Section 3.22. The Servicer shall not be obligated to pay the amounts set forth in this Section 3.22 with respect to shortfalls resulting from the application of the Relief Act.

SECTION 3.23.        Obligations of the Servicer in Respect of Mortgage Rates and  Monthly Payments.

In the event that a shortfall in any collection on or liability with respect to any Mortgage Loan results from or is attributable to adjustments to Mortgage Rates, Monthly Payments or Stated Principal Balances that were made by the Servicer in a manner not consistent with the terms of the related Mortgage Note and this Agreement, the Servicer, upon discovery or receipt of notice thereof, immediately shall deliver to the Securities Administrator for deposit in the Distribution Account from its own funds the amount of any such shortfall and shall indemnify and hold harmless the Trust Fund, the Trustee, the Securities Administrator, the Master Servicer, the Depositor and any successor servicer in respect of any such liability. Such indemnities shall survive the termination or discharge of this Agreement.  Notwithstanding the foregoing, this Section 3.23 shall not limit the ability of the
Servicer to seek recovery of any such amounts from the related Mortgagor under the terms of the related Mortgage Note and Mortgage, to the extent permitted by applicable law.

	
            SECTION 3.24.
 	
            Reserve Fund.
 

(a)        No later than the Closing Date, the Securities Administrator shall establish and maintain a separate, segregated trust account entitled, “Reserve Fund, Wells Fargo Bank, National Association, in trust for the registered holders of ACE Securities Corp. Home Equity  Loan Trust, Series 2005-AG1, Asset Backed Pass-Through Certificates.”  On the Closing Date, the Depositor will deposit, or cause to be deposited, into the Reserve Fund $1,000.  

(b)        On each Distribution Date, the Securities Administrator shall deposit into the Reserve Fund the amounts described in Section 5.01(c)(8)(vi), rather than distributing such amounts to the Class CE Certificateholders, and Section 5.01(c)(8)(viii). On each such Distribution Date, the Securities Administrator shall hold all such amounts for the benefit of the Holders of the Class A Certificates, the Mezzanine Certificates and the Class B Certificates and will distribute such amounts to the Holders of the Class A Certificates, the Mezzanine Certificates and the Class B Certificates, in the amounts and priorities set forth in Section 5.01(c).  If no Net WAC Rate Carryover Amounts are payable on a Distribution Date, the Securities Administrator shall deposit, into the Reserve Fund on behalf of the Class CE Certificateholders, from
amounts otherwise distributable to the Class CE Certificateholders, an amount such that when added to other amounts already on deposit in the Reserve Fund, the aggregate amount on deposit therein is equal to $1,000.

(c)        For federal and state income tax purposes, the Class CE Certificateholders will be deemed to be the owners of the Reserve Fund and all amounts deposited into the Reserve Fund (other than the initial deposit therein of $1,000) shall be treated as amounts distributed by REMIC II to the Holders of the Class CE Certificates.  Upon the termination of the Trust Fund, or the payment in full of the Class A Certificates, the Mezzanine Certificates and the Class B Certificates, all amounts remaining on deposit in the Reserve Fund will be released by the Trust Fund and distributed to the Class CE Certificateholders or their designees.  The Reserve Fund 

 

will be part of the Trust Fund but not part of any REMIC and any payments to the Holders of the Class A Certificates, the Mezzanine Certificates or the Class B Certificates of Net WAC Rate Carryover Amounts will not be payments with respect to a “regular interest” in a REMIC within the meaning of Code Section 860(G)(a)(1).

(d)        By accepting a Class CE Certificate, each Class CE Certificateholder hereby agrees that the Securities Administrator will deposit into the Reserve Fund the amounts described above on each Distribution Date rather than distributing such amounts to the Class CE Certificateholders.  By accepting a Class CE Certificate, each Class CE Certificateholder further agrees that its agreement to such action by the Securities Administrator is given for good and valuable consideration, the receipt and sufficiency of which is acknowledged by such acceptance.

(e)        At the direction of the Holders of a majority in Percentage Interest in the Class CE Certificates, the Securities Administrator shall direct any depository institution maintaining the Reserve Fund to invest the funds in such account in one or more Permitted Investments bearing interest or sold at a discount, and maturing, unless payable on demand, (i) no later than the Business Day immediately preceding the date on which such funds are required to be withdrawn from such account pursuant to this Agreement, if a Person other than the Securities Administrator or an Affiliate manages or advises such investment, and (ii) no later than the date on which such funds are required to be withdrawn from such account pursuant to this Agreement, if the Securities Administrator or an Affiliate manages or advises such investment. All income and gain
earned upon such investment shall be deposited into the Reserve Fund.  In no event shall the Securities Administrator be liable for any investments made pursuant to this clause (e). If the Holders of a majority in Percentage Interest in the Class CE Certificates fail to provide investment instructions, funds on deposit in the Reserve Fund shall be held uninvested by the Securities Administrator without liability for interest or compensation.

(f)         For federal tax return and information reporting, the right of the Class A Certificateholders, the Mezzanine Certificateholders and Class B Certificateholders to receive payments from the Reserve Fund in respect of any Net WAC Rate Carryover Amount shall be assigned a value of $35,000 with respect to the Certificates covered by the Swap Agreement.

	
            SECTION 3.25.
 	
            Advance Facility.
 

(a)        The Servicer is hereby authorized to enter into a financing or other facility (any such arrangement, an “Advance Facility”), the documentation for which complies with Section 3.25(e) below, under which (1) the Servicer assigns or pledges its rights under this Agreement to be reimbursed for any or all P&I Advances and/or Servicing Advances to (i) a Person, which may be a special-purpose bankruptcy-remote entity (an “SPV”), (ii) a Person, which may simultaneously assign or pledge such rights to an SPV or (iii) a lender (a “Lender”), which, in the case of any Person or SPV of the type described in either of the preceding clauses (i) or (ii), may directly or through other assignees and/or pledgees, assign or pledge such rights to a Person, which may include a trustee acting on behalf of holders of debt
instruments (any such Person or any such Lender, an “Advance Financing Person”), and/or (2) an Advance Financing Person agrees to fund all the P&I Advances and/or Servicing Advances required to be made by the Servicer pursuant to this Agreement.  No consent of the Trustee, Certificateholders or any 

 

other party shall be required before the Servicer may enter into an Advance Facility nor shall the Trustee or the Certificateholders be a third party beneficiary of any obligation of an Advance Financing Person to the Servicer.  Notwithstanding the existence of any Advance Facility under which an Advance Financing Person agrees to fund P&I Advances and/or Servicing Advances, (A) the Servicer (i) shall remain obligated pursuant to this Agreement to make P&I Advances and/or Servicing Advances pursuant to and as required by this Agreement and (ii) shall not be relieved of such obligations by virtue of such Advance Facility and (B) neither the Advance Financing Person nor any Servicer’s Assignee (as hereinafter defined) shall have any right to proceed against or otherwise contact any Mortgagor for the purpose of collecting any payment that may be due with respect to any related Mortgage Loan or
enforcing any covenant of such Mortgagor under the related Mortgage Loan Documents. 

(b)        If the Servicer enters into an Advance Facility, the Servicer and the related Advance Financing Person shall deliver to the Securities Administrator at the address set forth in Section 12.05 a written notice (an “Advance Facility Notice”), stating (a) the identity of the Advance Financing Person and (b) the identity of the Person (the “Servicer’s Assignee”) that will, subject to Section 3.25(c), have the right to make withdrawals from the Collection Account pursuant to Section 3.09(a) to reimburse previously unreimbursed P&I Advances and/or Servicing Advances (“Advance Reimbursement Amounts”). Advance Reimbursement Amounts (i) shall consist solely of amounts in respect of P&I Advances and/or Servicing Advances for which the Servicer would be permitted to reimburse itself in accordance with Section
3.09(a), assuming the Servicer had made the related P&I Advance(s) and/or Servicing Advance(s) and (ii) shall not consist of amounts payable to a successor Servicer in accordance with Section 3.09(a) to the extent permitted under Section 3.25(d).

(c)        Notwithstanding the existence of an Advance Facility, the Servicer, on behalf of the Advance Financing Person and the Servicer’s Assignee, shall be entitled to receive reimbursements of P&I Advances and/or Servicing Advances in accordance with Section 3.09(a), which entitlement may be terminated by the Advance Financing Person identified in the Advance Facility Notice pursuant to a written notice to the Trustee, the Master Servicer and the Servicer in the manner set forth in Section 12.05.  Upon receipt of such written notice, the Servicer shall no longer be entitled to receive reimbursement for any Advance Reimbursement Amounts and the Servicer’s Assignee shall immediately have the right to receive from the Collection Account all Advance Reimbursement Amounts. Notwithstanding the foregoing, and for the avoidance of doubt,
(i) the Servicer and/or the Servicer’s Assignee shall only be entitled to reimbursement of Advance Reimbursement Amounts from the Collection Account pursuant to Section 3.09(a) to the extent of and from the funds that the Servicer would have been entitled to reimbursement hereunder and shall not otherwise be entitled to receive amounts designated for distribution to Certificateholders and (ii) none of the Trustee or the Certificateholders shall have any right to, or otherwise be entitled to, any Advance Reimbursement Amounts to which the Servicer or the Servicer’s Assignee, as applicable, shall be entitled to pursuant to this Section 3.25.  An Advance Facility may be terminated by the joint written direction of the Servicer and the related Advance Financing Person.  Written notice of such termination shall be delivered to the Trustee and the Master Servicer in the manner set forth in Section 12.05 hereof.  None of the Depositor, the Master Servicer, the Securities
Administrator or the Trustee shall, as a result of the existence of any Advance Facility, have any additional duty or liability with respect to the calculation or payment of any Advance Reimbursement Amount, nor, as a result of the existence 

 

of any Advance Facility, shall the Depositor, the Master Servicer, the Securities Administrator or the Trustee have any additional responsibility to track or monitor the administration of the Advance Facility or the payment of Advance Reimbursement Amounts to the Servicer’s Assignee.  The Servicer shall indemnify the Depositor, the Trustee, the Master Servicer, the Securities Administrator any successor Servicer and the Trust Fund for any claim, loss, liability or damage resulting from any claim by the related Advance Financing Person or the Servicer’s Assignee, except to the extent that such claim, loss, liability or damage resulted from or arose out of the gross negligence, recklessness or willful misconduct on the part of the Depositor, the Trustee, the Master Servicer or any successor Servicer, as the case may be, or the breach of any obligations under this Agreement by the successor
Servicer, the Master Servicer, the Securities Administrator or the Trustee, as the case may be. The Servicer shall maintain and provide to any successor Servicer and, upon request, the Trustee and the Master Servicer a detailed accounting on a loan-by-loan basis as to amounts advanced by, pledged or assigned to, and reimbursed to any Advance Financing Person.  The successor Servicer shall be entitled to rely on any such information provided by the predecessor Servicer, and the successor Servicer (including the Trustee or the Master Servicer) shall not be liable for any errors in such information.

(d)        As between a predecessor Servicer and its Advance Financing Person, on the one hand, and a successor Servicer and its Advance Financing Person, if any, on the other hand, Advance Reimbursement Amounts on a loan-by-loan basis with respect to each Mortgage Loan as to which an Advance and/or Servicing Advance shall have been made and be outstanding shall be allocated on a “first-in, first out” basis.  In the event the Servicer’s Assignee shall have received some or all of an Advance Reimbursement Amount related to Advances and/or Servicing Advances that were made by a Person other than such predecessor Servicer or its related Advance Financing Person in error, then such Servicer’s Assignee shall be required to remit any portion of such Advance Reimbursement Amount to each Person entitled to such portion of such Advance
Reimbursement Amount.  Without limiting the generality of the foregoing, the Servicer shall remain entitled to be reimbursed by the Advance Financing Person for all Advances and/or Servicing Advances funded by the Servicer to the extent the related Advance Reimbursement Amounts have not been assigned or pledged to such Advance Financing Person or Servicer’s Assignee.

(e)        For purposes of any Officer’s Certificate of the Servicer made pursuant to Section 5.03(d), any Nonrecoverable P&I Advance or Nonrecoverable Servicing Advance referred to therein may have been made by such Servicer or any predecessor Servicer. In making its determination that any P&I Advance or Servicing Advance theretofore made has become a Nonrecoverable P&I Advance or Nonrecoverable Servicing Advance, as applicable, the Servicer shall apply the same criteria in making such determination regardless of whether such P&I Advance or Servicing Advance shall have been made by the Servicer or any predecessor Servicer.

(f)         Any amendment to this Section 3.25 or to any other provision of this Agreement that may be necessary or appropriate to effect the terms of an Advance Facility as described generally in this Section 3.25, may be entered into by the Trustee, the Depositor and the Servicer without the consent of any Certificateholder, provided such amendment complies with Section 12.01.  All reasonable costs and expenses (including attorneys’ fees and disbursements) of each party hereto of any such amendment shall be borne solely by the Servicer 

 

without reimbursement from the Trust Fund.  The parties hereto hereby acknowledge and agree that: (a) the P&I Advances and/or Servicing Advances financed by and/or pledged to an Advance Financing Person under any Advance Facility are obligations owed to the Servicer payable only from the cash flows and proceeds received under this Agreement for reimbursement of P&I Advances and/or Servicing Advances only to the extent provided herein, and the Trustee and the Trust are not, as a result of the existence of any Advance Facility, obligated or liable to repay any P&I Advances and/or Servicing Advances financed by the Advance Financing Person; (b) the Servicer will be responsible for remitting to the Advance Financing Person the applicable amounts collected by it as reimbursement for P&I Advances and/or Servicing Advances funded by the Advance Financing Person, subject to the provisions of this
Agreement; and (c) the Trustee shall not have any responsibility to track or monitor the administration of the financing arrangement between the Servicer and any Advance Financing Person.

	
            SECTION 3.26.
 	
            The Servicer Indemnification.
 

The Servicer agrees to indemnify the Trustee, Master Servicer and the Securities Administrator, from, and hold the Trustee, Master Servicer and the Securities Administrator harmless against, any loss, liability or expense (including reasonable attorney’s fees and expenses) incurred by any such Person by reason of the Servicer’s willful misfeasance, bad faith or gross negligence in the performance of its duties under this Agreement or by reason of the Servicer’s reckless disregard of its obligations and duties under this Agreement. Such indemnity shall survive the termination or discharge of this Agreement and the resignation or removal of the Servicer, the Trustee, the Master Servicer and the Securities Administrator. Any payment hereunder made by the Servicer to any such Person shall be from the Servicer’s own funds, without reimbursement from REMIC I therefor.

 

 

ARTICLE IV

 

ADMINISTRATION AND MASTER SERVICING

OF THE MORTGAGE LOANS BY THE MASTER SERVICER

	
            SECTION 4.01.
 	
            Master Servicer.
 

The Master Servicer shall, from and after the Closing Date supervise, monitor and oversee the obligations of the Servicer under this Agreement to service and administer the related Mortgage Loans in accordance with the terms of this Agreement and shall have full power and authority to do any and all things which it may deem necessary or desirable in connection with such master servicing and administration. In performing its obligations hereunder, the Master Servicer shall act in a manner consistent with Accepted Master Servicing Practices. Furthermore, the Master Servicer shall oversee and consult with the Servicer as necessary from time-to-time to carry out the Master Servicer’s obligations hereunder, shall receive, review and evaluate all reports, information and other data provided to the Master Servicer by the Servicer and shall cause the Servicer to perform and observe the
covenants, obligations and conditions to be performed or observed by the Servicer under this Agreement. The Master Servicer shall independently and separately monitor the Servicer’s servicing activities with respect to each related Mortgage Loan, reconcile the results of such monitoring with such information provided in the previous sentence on a monthly basis and coordinate corrective adjustments to the Servicer’s and Master Servicer’s records, and based on such reconciled and corrected information, prepare the statements specified in Section 5.03 and any other information and statements required to be provided by the Master Servicer hereunder. The Master Servicer shall reconcile the results of its Mortgage Loan monitoring with the actual remittances of the Servicer to the Distribution Account pursuant to the terms hereof based on information provided to the Master Servicer by the Servicer.  

The Trustee shall furnish the Servicer and the Master Servicer with any limited powers of attorney and other documents in form acceptable to it necessary or appropriate to enable the Servicer and the Master Servicer to service and administer the related Mortgage Loans and REO Property. The Trustee shall have no responsibility for any action of the Master Servicer or the Servicer pursuant to any such limited power of attorney and shall be indemnified by the Master Servicer or the Servicer, as applicable, for any cost, liability or expense incurred by the Trustee in connection with such Person’s misuse of any such power of attorney.

The Trustee, the Custodian and the Securities Administrator shall provide access to the records and documentation in possession of the Trustee, the Custodian or the Securities Administrator regarding the related Mortgage Loans and REO Property and the servicing thereof to the Certificateholders, the FDIC, and the supervisory agents and examiners of the FDIC, such access being afforded only upon reasonable prior written request and during normal business hours at the office of the Trustee, the Custodian or the Securities Administrator; provided, however, that, unless otherwise required by law, none of the Trustee, the Custodian or the Securities Administrator shall be required to provide access to such records and documentation if the provision thereof would violate the legal right to privacy of any Mortgagor. The Trustee, the Custodian and the Securities Administrator shall allow
representatives of the above entities to 

 

photocopy any of the records and documentation and shall provide equipment for that purpose at a charge that covers the Trustee’s, the Custodian’s or the Securities Administrator’s actual costs.

The Trustee shall execute and deliver to the Servicer or the Master Servicer upon request any court pleadings, requests for trustee’s sale or other documents necessary or desirable to (i) the foreclosure or trustee’s sale with respect to a Mortgaged Property; (ii) any legal action brought to obtain judgment against any Mortgagor on the Mortgage Note or any other Mortgage Loan Document; (iii) obtain a deficiency judgment against the Mortgagor; or (iv) enforce any other rights or remedies provided by the Mortgage Note or any other Mortgage Loan Document or otherwise available at law or equity.

	
            SECTION 4.02.
 	
            REMIC-Related Covenants.
 

For as long as each REMIC shall exist, the Trustee and the Securities Administrator shall act in accordance herewith to treat such REMIC as a REMIC, and the Trustee and the Securities Administrator shall comply with any directions of the Seller, the Servicer or the Master Servicer to assure such continuing treatment. In particular, the Trustee shall not (a) sell or permit the sale of all or any portion of the Mortgage Loans or of any investment of deposits in an Account unless such sale is as a result of a repurchase of the Mortgage Loans pursuant to this Agreement or the Trustee has received a REMIC Opinion prepared at the expense of the Trust Fund; and (b) other than with respect to a substitution pursuant to the Mortgage Loan Purchase Agreement or Section 2.03 of this Agreement, as applicable, accept any contribution to any REMIC after the Startup Day without receipt of an Opinion
of Counsel stating that such contribution will not result in an Adverse REMIC Event as defined in Section 11.01(f).

	
            SECTION 4.03.
 	
            Monitoring of Servicer.
 

(a)        The Master Servicer shall be responsible for monitoring the compliance by the Servicer with its duties under this Agreement. In the review of the Servicer’s activities, the Master Servicer may rely upon an Officer’s Certificate of the Servicer with regard to the Servicer’s compliance with the terms of this Agreement. In the event that the Master Servicer, in its judgment, determines that the Servicer should be terminated in accordance with the terms hereof or that a notice should be sent pursuant to the terms hereof with respect to the occurrence of an event that, unless cured, would constitute a Servicer Event of Default, the Master Servicer shall notify the Servicer, the Seller and the Trustee thereof and the Master Servicer shall issue such notice or take such other action as it deems appropriate.

(b)        The Master Servicer, for the benefit of the Trustee and the Certificateholders, shall enforce the obligations of the Servicer under this Agreement and the and shall, in the event that the Servicer fails to perform its obligations in accordance with this Agreement, subject to this Section and Article VIII, notify the Trustee and the Trustee shall terminate the rights and obligations of the Servicer hereunder and the Master Servicer shall act as servicer of the related Mortgage Loans or a successor servicer shall be appointed in accordance with the provisions of Article VIII.  Such enforcement, including, without limitation, the legal prosecution of claims and the pursuit of other appropriate remedies, shall be in such form and carried out to such an extent and at such time as the Master Servicer, in its good faith business 

 

judgment, would require were it the owner of the related Mortgage Loans. The Master Servicer shall pay the costs of such enforcement at its own expense, provided that the Master Servicer shall not be required to prosecute or defend any legal action except to the extent that the Master Servicer shall have received reasonable indemnity for its costs and expenses in pursuing such action.

(c)        The Master Servicer shall be entitled to be reimbursed by the Servicer (or from amounts on deposit in the Distribution Account if the Servicer is unable to fulfill its obligations hereunder) for all reasonable out-of-pocket or third party costs associated with the transfer of servicing from the predecessor Servicer (or if the predecessor Servicer is the Master Servicer, from the Servicer immediately preceding the Master Servicer), including without limitation, any reasonable out-of-pocket or third party costs or expenses associated with the complete transfer of all servicing data and the completion, correction or manipulation of such servicing data as may be required by the successor servicer (including the Master Servicer) to correct any errors or insufficiencies in the servicing data or otherwise to enable the successor servicer
(including the Master Servicer) to service the related Mortgage Loans properly and effectively, upon presentation of reasonable documentation of such costs and expenses.

(d)        The Master Servicer shall require the Servicer to comply with the remittance requirements and other obligations set forth in this Agreement.

(e)        If the Master Servicer acts as a successor to the Servicer, it will not assume any liability for the representations and warranties of the terminated Servicer.

	
            SECTION 4.04.
 	
            Fidelity Bond.
 

The Master Servicer, at its expense, shall maintain in effect a blanket fidelity bond and an errors and omissions insurance policy, affording coverage with respect to all directors, officers, employees and other Persons acting on such Master Servicer’s behalf, and covering errors and omissions in the performance of the Master Servicer’s obligations hereunder. The errors and omissions insurance policy and the fidelity bond shall be in such form and amount generally acceptable for entities serving as master servicers or trustees.

	
            SECTION 4.05.
 	
            Power to Act; Procedures.
 

The Master Servicer shall master service the Mortgage Loans and shall have full power and authority, subject to the REMIC Provisions and the provisions of Article XI, to do any and all things that it may deem necessary or desirable in connection with the master servicing and administration of the Mortgage Loans, including but not limited to the power and authority (i) to execute and deliver, on behalf of the Certificateholders and the Trustee, customary consents or waivers and other instruments and documents, (ii) to consent to transfers of any Mortgaged Property and assumptions of the Mortgage Notes and related Mortgages, (iii) to collect any Insurance Proceeds and Liquidation Proceeds, and (iv) to effectuate foreclosure or other conversion of the ownership of the Mortgaged Property securing any Mortgage Loan, in each case, in accordance with the provisions of this Agreement; provided,
however, that the Master Servicer shall not (and, consistent with its responsibilities under Section 4.03, shall not permit the Servicer to) knowingly or intentionally take any action, or fail to take (or fail to cause to be 

 

taken) any action reasonably within its control and the scope of duties more specifically set forth herein, that, under the REMIC Provisions, if taken or not taken, as the case may be, would cause REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V, REMIC VI, REMIC VII, REMIC VIII, REMIC IX, REMIC X, and REMIC XI to fail to qualify as a REMIC or result in the imposition of a tax upon the Trust Fund (including but not limited to the tax on prohibited transactions as defined in Section 860F(a)(2) of the Code and the tax on contributions to a REMIC set forth in Section 860G(d) of the Code) unless the Master Servicer has received an Opinion of Counsel (but not at the expense of the Master Servicer) to the effect that the contemplated action will not cause REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V, REMIC VI, REMIC VII, REMIC VIII, REMIC IX, REMIC X, and REMIC XI to fail to qualify as a REMIC or
result in the imposition of a tax upon REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V, REMIC VI, REMIC VII, REMIC VIII, REMIC IX, REMIC X, and REMIC XI, as the case may be. The Trustee shall furnish the Master Servicer, upon written request from a Servicing Officer, with any powers of attorney prepared and delivered to it and reasonably acceptable to it by empowering the Master Servicer or the Servicer to execute and deliver instruments of satisfaction or cancellation, or of partial or full release or discharge, and to foreclose upon or otherwise liquidate Mortgaged Property, and to appeal, prosecute or defend in any court action relating to the Mortgage Loans or the Mortgaged Property, in accordance with this Agreement, and the Trustee shall execute and deliver such other documents prepared and delivered to it and reasonably acceptable to it, as the Master Servicer or the Servicer may request, to enable the Master Servicer to master service and administer the related Mortgage Loans
and carry out its duties hereunder, in each case in accordance with Accepted Master Servicing Practices (and the Trustee shall have no liability for misuse of any such powers of attorney by the Master Servicer or the Servicer and shall be indemnified by the Master Servicer or the Servicer, as applicable, for any cost, liability or expense incurred by the Trustee in connection with such Person’s use or misuse of any such power of attorney). If the Master Servicer or the Trustee has been advised that it is likely that the laws of the state in which action is to be taken prohibit such action if taken in the name of the Trustee or that the Trustee would be adversely affected under the “doing business” or tax laws of such state if such action is taken in its name, the Master Servicer shall join with the Trustee in the appointment of a co-trustee pursuant to Section 9.10. In the performance of its duties hereunder, the Master Servicer shall be an independent contractor
and shall not, except in those instances where it is taking action in the name of the Trustee, be deemed to be the agent of the Trustee.

	
            SECTION 4.06.
 	
            Due-on-Sale Clauses; Assumption Agreements.
 

To the extent Mortgage Loans contain enforceable due-on-sale clauses, the Master Servicer shall cause the Servicer, as applicable, to enforce such clauses in accordance with this Agreement. If applicable law prohibits the enforcement of a due-on-sale clause or such clause is otherwise not enforced in accordance with this Agreement and, as a consequence, a Mortgage Loan is assumed, the original Mortgagor may be released from liability in accordance with this Agreement.

 

 

SECTION 4.07.        Documents, Records and Funds in Possession of Master Servicer To Be Held for Trustee.

(a)        The Master Servicer shall transmit to the Trustee or the Custodian such documents and instruments coming into the possession of the Master Servicer from time to time as are required by the terms hereof to be delivered to the Trustee or the Custodian. Any funds received by the Master Servicer in respect of any Mortgage Loan or which otherwise are collected by the Master Servicer as Liquidation Proceeds or Insurance Proceeds in respect of any Mortgage Loan shall be remitted to the Securities Administrator for deposit in the Distribution Account. The Master Servicer shall, and, subject to Section 3.20 of this Agreement, shall cause the Servicer to, provide access to information and documentation regarding the Mortgage Loans to the Trustee, its agents and accountants at any time upon reasonable request and during normal business hours,
and to Certificateholders that are savings and loan associations, banks or insurance companies, the Office of Thrift Supervision, the FDIC and the supervisory agents and examiners of such Office and Corporation or examiners of any other federal or state banking or insurance regulatory authority if so required by applicable regulations of the Office of Thrift Supervision or other regulatory authority, such access to be afforded without charge but only upon reasonable request in writing and during normal business hours at the offices of the Master Servicer designated by it. In fulfilling such a request the Master Servicer shall not be responsible for determining the sufficiency of such information.

(b)        All Mortgage Files and funds collected or held by, or under the control of, the Master Servicer, in respect of any Mortgage Loans, whether from the collection of principal and interest payments or from Liquidation Proceeds or Insurance Proceeds, shall be remitted to the Securities Administrator for deposit in the Distribution Account.

	
            SECTION 4.08.
 	
            Standard Hazard Insurance and Flood Insurance Policies.
 

For each Mortgage Loan, the Master Servicer shall enforce the obligation of the Servicer under this Agreement to maintain or cause to be maintained standard fire and casualty insurance and, where applicable, flood insurance, all in accordance with the provisions of this Agreement. It is understood and agreed that such insurance shall be with insurers meeting the eligibility requirements set forth in Section 3.11 of the Agreement and that no earthquake or other additional insurance is to be required of any Mortgagor or to be maintained on property acquired in respect of a defaulted loan, other than pursuant to such applicable laws and regulations as shall at any time be in force and as shall require such additional insurance.

	
            SECTION 4.09.
 	
            Presentment of Claims and Collection of Proceeds.
 

The Master Servicer shall enforce the Servicer’s obligations under this Agreement to prepare and present on behalf of the Trustee and the Certificateholders all claims under any insurance policies and take such actions (including the negotiation, settlement, compromise or enforcement of the insured’s claim) as shall be necessary to realize recovery under such policies. Any proceeds disbursed to the Master Servicer (or disbursed to the Servicer and remitted to the Master Servicer) in respect of such policies, bonds or contracts shall be promptly deposited in the Distribution Account upon receipt, except that any amounts realized that are to be applied to the repair or restoration of the related Mortgaged Property as a condition precedent to the 

 

presentation of claims on the related Mortgage Loan to the insurer under any applicable insurance policy need not be so deposited or remitted.

	
            SECTION 4.10.
 	
            Maintenance of Primary Mortgage Insurance Policies.
 

(a)        The Master Servicer shall not take, or permit the Servicer to take (to the extent such action is prohibited by this Agreement), any action that would result in noncoverage under any primary mortgage insurance policy of any loss which, but for the actions of the Master Servicer or the Servicer, as applicable, would have been covered thereunder. The Master Servicer shall use its best reasonable efforts to cause the Servicer to keep in force and effect (to the extent that the Mortgage Loan requires the Mortgagor to maintain such insurance), primary mortgage insurance applicable to each Mortgage Loan in accordance with the provisions of this Agreement. The Master Servicer shall not, and shall not permit the Servicer to, cancel or refuse to renew any primary mortgage insurance policy that is in effect at the date of the initial issuance of the
Mortgage Note and is required to be kept in force hereunder except in accordance with the provisions of this Agreement.

(b)        The Master Servicer agrees to cause the Servicer to present, on behalf of the Trustee and the Certificateholders, claims to the insurer under any primary mortgage insurance policies and, in this regard, to take such reasonable action as shall be necessary to permit recovery under any primary mortgage insurance policies respecting defaulted Mortgage Loans.

SECTION 4.11.        Trustee to Retain Possession of Certain Insurance Policies and Documents.

The Trustee or the Custodian, shall retain possession and custody of the originals (to the extent available) of any primary mortgage insurance policies, or certificate of insurance if applicable, and any certificates of renewal as to the foregoing as may be issued from time to time as contemplated by this Agreement. Until all amounts distributable in respect of the Certificates have been distributed in full and the Master Servicer and the Servicer have otherwise fulfilled their respective obligations under this Agreement the Trustee or the Custodian shall also retain possession and custody of each Mortgage File in accordance with and subject to the terms and conditions of this Agreement and the Custodial Agreement. The Master Servicer shall promptly deliver or cause to be delivered to the Trustee or the Custodian, upon the execution or receipt thereof the originals of any primary mortgage
insurance policies, any certificates of renewal, and such other documents or instruments that constitute Mortgage Loan Documents that come into the possession of the Master Servicer from time to time.

	
            SECTION 4.12.
 	
            Reserved.
 	
             

	
            SECTION 4.13.
 	
            Compensation for the Master Servicer.
 

As compensation for the activities of the Master Servicer hereunder, the Master Servicer shall be entitled to the Master Servicing Fee and the income from investment of or earnings on the funds from time to time in the Distribution Account, as provided in Section 3.10.  The compensation payable to the Master Servicer in respect of any Distribution Date shall be reduced in accordance with Section 4.18. The Master Servicer shall be required to pay all 

 

expenses incurred by it in connection with its activities hereunder and shall not be entitled to reimbursement therefor except as provided in this Agreement.

	
            SECTION 4.14.
 	
            REO Property.
 

(a)        In the event the Trust Fund acquires ownership of any REO Property in respect of any related Mortgage Loan, the deed or certificate of sale shall be issued to the Trustee, or to its nominee, on behalf of the related Certificateholders. The Master Servicer shall cause the Servicer to sell, any REO Property as expeditiously as possible and in accordance with the provisions of this Agreement.  Further, the Master Servicer shall cause the Servicer to sell any REO Property prior to three years after the end of the calendar year of its acquisition by REMIC I unless (i) the Trustee shall have been supplied by the Servicer with an Opinion of Counsel to the effect that the holding by the Trust Fund of such REO Property subsequent to such three-year period will not result in the imposition of taxes on “prohibited transactions” of any REMIC
hereunder as defined in section 860F of the Code or cause any REMIC hereunder to fail to qualify as a REMIC at any time that any Certificates are outstanding, in which case the Trust Fund may continue to hold such Mortgaged Property (subject to any conditions contained in such Opinion of Counsel) or (ii) the Servicer shall have applied for, prior to the expiration of such three-year period, an extension of such three-year period in the manner contemplated by Section 856(e)(3) of the Code, in which case the three-year period shall be extended by the applicable extension period. The Master Servicer shall cause the Servicer to protect and conserve, such REO Property in the manner and to the extent required by this Agreement in accordance with the REMIC Provisions and in a manner that does not result in a tax on “net income from foreclosure property” or cause such REO Property to fail to qualify as “foreclosure property” within the meaning of
Section 860G(a)(8) of the Code.

(b)        The Master Servicer shall cause the Servicer to deposit all funds collected and received in connection with the operation of any REO Property in the REO Account.

	
            SECTION 4.15.
 	
            Annual Officer’s Certificate as to Compliance.
 

(a)        The Master Servicer shall deliver to the Trustee and the Rating Agencies on or before March 15 of each year, commencing on March 15, 2006, an Officer’s Certificate signed by a Servicing Officer, certifying that with respect to the period ending December 31 of the prior year: (i) such Servicing Officer has reviewed the activities of such Master Servicer during the preceding calendar year or portion thereof and its performance under this Agreement, (ii) to the best of such Servicing Officer’s knowledge, based on such review, such Master Servicer has performed and fulfilled its duties, responsibilities and obligations under this Agreement in all material respects throughout such year, or, if there has been a default in the fulfillment of any such duties, responsibilities or obligations, specifying each such default known to such
Servicing Officer and the nature and status thereof, (iii) nothing has come to the attention of such Servicing Officer to lead such Servicing Officer to believe that the Master Servicer has failed to perform any of its duties, responsibilities and obligations under this Agreement in all material respects throughout such year, or, if there has been a material default in the performance or fulfillment of any such duties, responsibilities or obligations, specifying each such default known to such Servicing Officer and the nature and status thereof.

 

 

(b)        Copies of such statements shall be provided to any Certificateholder upon request, by the Master Servicer or by the Trustee at the Master Servicer’s expense if the Master Servicer failed to provide such copies (unless (i) the Master Servicer shall have failed to provide the Trustee with such statement or (ii) the Trustee shall be unaware of the Master Servicer’s failure to provide such statement).

	
            SECTION 4.16.
 	
            Annual Independent Accountant’s Servicing Report.
 

If the Master Servicer has, during the course of any calendar year, directly serviced any of the Mortgage Loans, then the Master Servicer at its expense shall cause a nationally recognized firm of independent certified public accountants to furnish a statement to the Trustee, the Rating Agencies and the Seller on or before March 15 of each year, commencing on March 15, 2006 to the effect that, with respect to the most recently ended fiscal year, such firm has examined certain records and documents relating to the Master Servicer’s performance of its servicing obligations under this Agreement and pooling and servicing and trust agreements in material respects similar to this Agreement and to each other and that, on the basis of such examination conducted substantially in compliance with the audit program for mortgages serviced for Freddie Mac or the Uniform Single Attestation Program
for Mortgage Bankers, such firm is of the opinion that the Master Servicer’s activities have been conducted in compliance with this Agreement, or that such examination has disclosed no material items of noncompliance except for (i) such exceptions as such firm believes to be immaterial, (ii) such other exceptions as are set forth in such statement and (iii) such exceptions that the Uniform Single Attestation Program for Mortgage Bankers or the Audit Program for Mortgages Serviced by Freddie Mac requires it to report. Copies of such statements shall be provided to any Certificateholder upon request by the Master Servicer, or by the Trustee at the expense of the Master Servicer if the Master Servicer shall fail to provide such copies (unless (i) the Master Servicer shall have failed to provide the Trustee with such statement or (ii) the Trustee shall be unaware of the Master Servicer’s failure to provide such statement).  If such report discloses exceptions that are material,
the Master Servicer shall advise the Trustee whether such exceptions have been or are susceptible of cure, and will take prompt action to do so.

	
            SECTION 4.17.
 	
            [Reserved.]
 

SECTION 4.18.        Obligation of the Master Servicer in Respect of Prepayment Interest Shortfalls.

In the event of any Prepayment Interest Shortfalls, the Master Servicer shall deposit into the Distribution Account not later than the related Distribution Date an amount equal to the lesser of (i) the aggregate amounts required to be paid by the Servicer with respect to Prepayment Interest Shortfalls attributable to Principal Prepayments in full on the Mortgage Loans for the related Distribution Date, and not so paid by the Servicer and (ii) the aggregate amount of the compensation payable to the Master Servicer for such Distribution Date in accordance with Section 4.13, without reimbursement therefor.

 

 

 

ARTICLE V

 

PAYMENTS TO CERTIFICATEHOLDERS

	
            SECTION 5.01.
 	
            Distributions.
 

On each Distribution Date, the following amounts, in the following order of priority, shall be distributed by REMIC I to REMIC II on account of the REMIC I Regular Interests and distributed to the holders of the Class R Certificates (in respect of the Class R-I Interest), as the case may be: 

	
            (a)
 	
            (1)
 	
            With respect to the Group IA Mortgage Loans:
 

(i)         to Holders of REMIC I Regular Interest A-I, and each of REMIC I Regular Interest I-1-A through I-42-B, pro rata, in an amount equal to (A) Uncertificated Interest for such REMIC I Regular Interests for such Distribution Date, plus (B) any amounts payable in respect thereof remaining unpaid from previous Distribution Dates;

(ii)         to the extent of amounts remaining after the distributions made pursuant to clause (i) above, to the Holders of REMIC I Regular Interest A-I, an amount of principal shall be distributed to such Holders until the Uncertificated Balance of REMIC I Regular Interest A-I is reduced to zero; and

(iii)        to the extent of amounts remaining after the distributions made pursuant to clause (i) and (ii) above, payments of principal shall be allocated to REMIC I Regular interests I-1-A through I-42-B starting with the lowest numerical denomination until the Uncertificated Balance of each such REMIC I Regular Interest is reduced to zero, provided that, for REMIC I Regular Interests with the same numerical denomination, such payments of principal shall be allocated pro rata between such REMIC I Regular Interests.

	
            (2)
 	
            With respect to the Group IB Mortgage Loans:
 

(i)         to Holders of REMIC I Regular Interest A-II, and each of REMIC I Regular Interest II-1-A through II-42-B, pro rata, in an amount equal to (A) Uncertificated Interest for such REMIC I Regular Interests for such Distribution Date, plus (B) any amounts payable in respect thereof remaining unpaid from previous Distribution Dates;

(ii)         to the extent of amounts remaining after the distributions made pursuant to clause (i) above, to the Holders of REMIC I Regular Interest A-II, an amount of principal shall be distributed to such Holders until the Uncertificated Balance of REMIC I Regular Interest A-II is reduced to zero; and

(iii)        to the extent of amounts remaining after the distributions made pursuant to clause (i) and (ii) above, payments of principal shall be allocated to REMIC I Regular interests II-1-A through II-42-B starting with the lowest numerical denomination until the Uncertificated Balance of each such REMIC I Regular Interest is reduced to 

 

zero, provided that, for REMIC I Regular Interests with the same numerical denomination, such payments of principal shall be allocated pro rata between such REMIC I Regular Interests.

	
            (3)
 	
            With respect to the Group II Mortgage Loans:
 

(i)         to Holders of REMIC I Regular Interest A-III and each of REMIC I Regular Interest III-1-A through III-42-B, pro rata, in an amount equal to (A) Uncertificated Interest for such REMIC I Regular Interests for such Distribution Date, plus (B) any amounts payable in respect thereof remaining unpaid from previous Distribution Dates.

(ii)         to the extent of amounts remaining after the distributions made pursuant to clause (i) above, to the Holders of REMIC I Regular Interest A-III, an amount of principal shall be distributed to such Holders until the Uncertificated Balance of REMIC I Regular Interest A-III is reduced to zero; and

(iii)        to the extent of amounts remaining after the distributions made pursuant to clause (i) and (ii) above, payments of principal shall be allocated to REMIC I Regular interests III-1-A through III-42-B starting with the lowest numerical denomination until the Uncertificated Balance of each such REMIC I Regular Interest is reduced to zero, provided that, for REMIC I Regular Interests with the same numerical denomination, such payments of principal shall be allocated pro rata between such REMIC I Regular Interests.

(b)        to the Holders of REMIC I Regular Interest P, (A) all amounts representing Prepayment Charges in respect of the Mortgage Loans received during the related Prepayment Period and (B) on the Distribution Date immediately following the expiration of the latest Prepayment Charge as identified on the Prepayment Charge Schedule or any Distribution Date thereafter until $100 has been distributed pursuant to this clause. 

(c)        (1) On each Distribution Date, the following amounts, in the following order of priority, shall be distributed by REMIC II to REMIC III on account of the REMIC II Regular Interests or withdrawn from the Distribution Account and distributed to the Holders of the Class R Certificates (in respect of the Class R-II Interest), as the case may be:

(i)         first to the Holders of REMIC II Regular Interest IO, in an amount equal to (A) Uncertificated Interest for such REMIC II Regular Interest for such Distribution Date, plus (B) any amounts in respect thereof remaining unpaid from previous Distribution Dates and second, to the Holders of REMIC II Regular Interest AA, REMIC II Regular Interest A-1A, REMIC II Regular Interest A-1B1, REMIC II Regular Interest A-1B2, REMIC II Regular Interest A-2A, REMIC II Regular Interest A-2B, REMIC II Regular Interest A-2C, REMIC II Regular Interest A-2D, REMIC II Regular Interest M-1, REMIC II Regular Interest M-2, REMIC II Regular Interest M-3, REMIC II Regular Interest M-4, REMIC II Regular Interest M-5, REMIC II Regular Interest M-6, REMIC II Regular Interest B-1, REMIC II Regular Interest B-2, REMIC II Regular Interest B-3,
REMIC II Regular Interest B-4, REMIC II Regular Interest B-5 and REMIC 

 

II Regular Interest ZZ, pro rata, in an amount equal to (A) the Uncertificated Interest for such Distribution Date, plus (B) any amounts in respect thereof remaining unpaid from previous Distribution Dates. Amounts payable as Uncertificated Interest in respect of REMIC II Regular Interest ZZ shall be reduced when the REMIC II Overcollateralization Amount is less than the REMIC II Required Overcollateralization Amount, by the lesser of (x) the amount of such difference and (y) the Maximum ZZ Uncertificated Interest Deferral Amount and such amount will be payable to the Holders of REMIC II Regular Interest A-1A, REMIC II Regular Interest A-1B1, REMIC II Regular Interest A-1B2, REMIC II Regular Interest A-2A, REMIC II Regular Interest A-2B, REMIC II Regular Interest A-2C, REMIC II Regular Interest A-2D, REMIC II Regular Interest M-1, REMIC II
Regular Interest M-2, REMIC II Regular Interest M-3, REMIC II Regular Interest M-4, REMIC II Regular Interest M-5, REMIC II Regular Interest M-6, REMIC II Regular Interest B-1, REMIC II Regular Interest B-2, REMIC II Regular Interest B-3, REMIC II Regular Interest B-4 and REMIC II Regular Interest B-5 in the same proportion as the Overcollateralization Increase Amount is allocated to the Corresponding Certificates and the Uncertificated Balance of REMIC II Regular Interest ZZ shall be increased by such amount;

(ii)         to Holders of REMIC II Regular Interest IA-SUB, REMIC II Regular Interest IA-GRP, REMIC II Regular Interest IB-SUB, REMIC II Regular Interest IB-GRP, REMIC II Regular Interest II-SUB, REMIC II Regular Interest II-GRP, and REMIC II Regular Interest XX, pro rata, in an amount equal to (A) the Uncertificated Interest for such Distribution Date, plus (B) any amounts in respect thereof remaining unpaid from previous Distribution Dates;

(iii)        to the Holders of REMIC II Regular Interests, in an amount equal to the remainder of the REMIC II Marker Allocation Percentage of the available funds for such Distribution Date after the distributions made pursuant to clause (i) above, allocated as follows:

(A)       98.00% of such remainder to the Holders of REMIC II Regular Interest AA, until the Uncertificated Balance of such REMIC II Regular Interest is reduced to zero;

(B)        2.00% of such remainder, first, to the Holders of REMIC II Regular Interest A-1A, REMIC II Regular Interest A-1B1, REMIC II Regular Interest A-1B2, REMIC II Regular Interest A-2A, REMIC II Regular Interest A-2B, REMIC II Regular Interest A-2C, REMIC II Regular Interest A-2D, REMIC II Regular Interest M-1, REMIC II Regular Interest M-2, REMIC II Regular Interest M-3, REMIC II Regular Interest M-4, REMIC II Regular Interest M-5, REMIC II Regular Interest M-6, REMIC II Regular Interest B-1, REMIC II Regular Interest B-2, REMIC II Regular Interest B-3, REMIC II Regular Interest B-4 and REMIC II Regular Interest B-5, 1% of and in the same proportion as principal payments are allocated to the Corresponding Certificates, until the Uncertificated Balances of such REMIC II Regular Interests are reduced to zero and second to the
Holders of REMIC II Regular Interest ZZ, until the Uncertificated Balance of such REMIC II Regular Interest is reduced to zero;

 

 

(C)       to the Holders of REMIC II Regular Interest P, 100% of the amounts deemed distributed on REMIC I Regular Interest P.; then

(D)       any remaining amount to the Holders of the Class R Certificate, in respect of the Class R-II Interest;

provided, however, that 98.00% and 2.00% of any principal payments that are attributable to an Overcollateralization Reduction Amount shall be allocated to Holders of REMIC II Regular Interest AA and REMIC II Regular Interest ZZ, respectively.

(iv)        to the Holders of REMIC II Regular Interests, in an amount equal to the remainder of the REMIC II Sub WAC Allocation Percentage of available funds for such Distribution Date after the distributions made pursuant to clause (c)(ii) above, such that distributions of principal shall be deemed to be made to the REMIC II Regular Interests first, so as to keep the Uncertificated Balance of each REMIC II Regular Interest ending with the designation “GRP” equal to 0.01% of the aggregate Stated Principal Balance of the Mortgage Loans in the related loan group; second, to each REMIC II Regular Interest ending with the designation “SUB,” so that the Uncertificated Balance of each such REMIC II Regular Interest is equal to 0.01% of the excess of (x) the aggregate Stated Principal Balance of the Mortgage Loans in
the related loan group over (y) the current Certificate Principal Balance of the Class A Certificate in the related loan group (except that if any such excess is a larger number than in the preceding distribution period, the least amount of principal shall be distributed to such REMIC II Regular Interests such that the REMIC II Subordinated Balance Ratio is maintained); and third, any remaining principal to REMIC II Regular Interest XX.

(v)        Notwithstanding the distributions described in Section 5.01(a)(1), distributions of funds shall be made to Certificateholders only in accordance with Section 5.01(a)(2) through (8).

(2)        On each Distribution Date, the Securities Administrator shall withdraw from the Distribution Account to the extent on deposit therein an amount equal to the Group IA Interest Remittance Amount and make the following disbursements and transfers in the order of priority described below, in each case to the extent of the Group IA Interest Remittance Amount remaining for such Distribution Date:

first, to the Supplemental Interest Trust, an amount equal to the Group I Allocation Percentage of (i) any Net Swap Payment owed to the Swap Provider and (ii) any Swap Termination Payment owed to the Swap Provider not due to a Swap Provider Trigger Event;

second, to the Holders of the Class A-1A Certificates, the Senior Interest Distribution Amount allocable to the Class A-1A Certificates; and

third, concurrently, to the Holders of the Class A-1B1, Class A-1B2, Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates, the Senior Interest Distribution Amount allocable to each such Class, to the extent remaining unpaid after the distribution of the Group IB Interest Remittance Amount as set forth in 

 

Section 5.01(c)(3) below and the Group II Interest Remittance Amount as set forth in Section 5.01(c)(4) below, on a pro rata basis, based on the entitlement of each such Class.

(3)        On each Distribution Date, the Securities Administrator shall withdraw from the Distribution Account to the extent on deposit therein an amount equal to the Group IB Interest Remittance Amount and make the following disbursements and transfers in the order of priority described below, in each case to the extent of the Group IB Interest Remittance Amount remaining for such Distribution Date:

first, to the Supplemental Interest Trust, an amount equal to the Group IB Allocation Percentage of (i) any Net Swap Payment owed to the Swap Provider and (ii) any Swap Termination Payment owed to the Swap Provider not due to a Swap Provider Trigger Event;

second, to the Holders of the Class A-1B1 Certificates and Class A-1B2 Certificates, the Senior Interest Distribution Amount allocable to each such Class on a pro rata basis, based on the entitlement of each such Class; and

third, concurrently, to the Holders of the Class A-1A, Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates, the Senior Interest Distribution Amount allocable to each such Class, to the extent remaining unpaid after the distribution of the Group IA Interest Remittance Amount as set forth in Section 5.01(c)(2) above and the Group II Interest Remittance Amount as set forth in Section 5.01(c)(4) below, on a pro rata basis, based on the entitlement of each such Class.

(4)        On each Distribution Date, the Securities Administrator shall withdraw from the Distribution Account to the extent on deposit therein an amount equal to the Group II Interest Remittance Amount and make the following disbursements and transfers in the order of priority described below, in each case to the extent of the Group II Interest Remittance Amount remaining for such Distribution Date:

first, to the Supplemental Interest Trust, an amount equal to the Group II Allocation Percentage of (i) any Net Swap Payment owed to the Swap Provider and (ii) any Swap Termination Payment owed to the Swap Provider not due to a Swap Provider Trigger Event;

second, concurrently, to the Holders of the Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates, the Senior Interest Distribution Amount allocable to each such Class, on a pro rata basis, based on the entitlement of each such Class; and

third, concurrently, to the Holders of the Class A-1A, Class A-1B1 and Class A-1B2 Certificates, the Senior Interest Distribution Amount allocable to each such Class, to the extent remaining unpaid after the distribution of the Group IA Interest Remittance Amount as set forth in Section 5.01(c)(2) above and the 

 

Group IB Interest Remittance Amount as set forth in Section 5.01(c)(3) above, on a pro rata basis, based on the entitlement of each such Class.

(5)        On each Distribution Date, the Securities Administrator shall withdraw from the Distribution Account to the extent on deposit therein an amount equal to the Group IA Interest Remittance Amount, Group IB Interest Remittance Amount and Group II Interest Remittance Amount remaining after the distributions required by clauses (2), (3) and (4) above and make the following disbursements and transfers in the order of priority described below, in each case to the extent of the Group IA Interest Remittance Amount, Group IB Interest Remittance Amount and Group II Interest Remittance Amount remaining for such Distribution Date:

sequentially, to the Holders of the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class B-1, Class B-2, Class B-3, Class B-4 and Class B-5 Certificates, in that order, the Interest Distribution Amount allocable to each such Class.

(6)        On each Distribution Date (a) prior to the Stepdown Date or (b) on which a Trigger Event is in effect, the Securities Administrator shall withdraw from the Distribution Account to the extent on deposit therein an amount equal to the Group IA Principal Distribution Amount, Group IB Principal Distribution Amount and Group II Principal Distribution Amount and distribute to the Certificateholders the following amounts, in the following order of priority:

(i)         The Group IA Principal Distribution Amount shall be distributed in the following order of priority:

first, to the Supplemental Interest Trust, an amount equal to the Group IA Allocation Percentage of (i) any Net Swap Payment owed to the Swap Provider and (ii) any Swap Termination Payment owed to the Swap Provider not due to a Swap Provider Trigger Event to the extent not paid from the Interest Remittance Amount on such Distribution Date;

second, to the Holders of the Class A-1A Certificates until the Certificate Principal Balance of the Class A-1A Certificates has been reduced to zero; and

third, concurrently, (i) to the Holders of the Class A-1B1 Certificates and Class A-1B2 Certificates and (ii) to the Holders of the Class A-2 Certificates, after taking into account the distribution of the Group IB Principal Distribution Amount as described in Section 5.01(c)(6)(ii) below and the Group II Principal Distribution Amount as described in Section 5.01(c)(6)(iii) below, on a pro rata basis, based on the Certificate Principal Balance of each such Class, until the Certificate Principal Balance of each such Class has been reduced to zero; provided, however that if a Sequential Trigger Event is in effect on such Distribution Date, the pro rata allocation to the Class A-1B1 Certificates and Class A-1B2 Certificates pursuant to this clause third shall be based on the total Certificate Principal Balance of the Class A-1B1 Certificates and Class A-1B2 

 

Certificates, but shall be distributed sequentially to the Class A-1B1 Certificates and Class A-1B2 Certificates, in that order, until the Certificate Principal Balance of each such Class has been reduced to zero; provided, further that the pro rata allocation to the Class A-2 Certificates pursuant to this clause third shall be based on the total Certificate Principal Balance of the Class A-2 Certificates, but shall be distributed sequentially to the Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates, in that order, until the Certificate Principal Balance of each such Class has been reduced to zero.

(ii)         The Group IB Principal Distribution Amount shall be distributed in the following order of priority:

first, to the Supplemental Interest Trust, an amount equal to the Group IB Allocation Percentage of (i) any Net Swap Payment owed to the Swap Provider and (ii) any Swap Termination Payment owed to the Swap Provider not due to a Swap Provider Trigger Event to the extent not paid from the Interest Remittance Amount on such Distribution Date;

second, concurrently to the Holders of the Class A-1B1 Certificates and Class A-1B2, on a pro rata basis based on the Certificate Principal Balance of each such Class, until the Certificate Principal Balance of each such Class has been reduced to zero; provided, however that if a Sequential Trigger Event is in effect on such Distribution Date, the distribution to the holders of the Class A-1B1 Certificates and Class A-1B2 Certificates pursuant to this clause second shall be made on a sequential basis to the Class A-1B1 Certificates and Class A-1B2 Certificates, in that order, until the Certificate Principal Balance of each such Class has been reduced to zero; and

third, concurrently, (i) to the Holders of the Class A-1A Certificates and (ii) to the Holders of the Class A-2 Certificates, after taking into account the distribution of the Group IA Principal Distribution Amount as described in Section 5.01(c)(6)(i) above and the Group II Principal Distribution Amount as described in Section 5.01(c)(6)(iii) below, on a pro rata basis, based on the Certificate Principal Balance of each such Class, until the Certificate Principal Balance of each such Class has been reduced to zero; provided, however that the pro rata allocation to the Class A-2 Certificates pursuant to this clause third shall be based on the total Certificate Principal Balance of the Class A-2 Certificates, but shall be distributed sequentially to the Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates, in that order, until the Certificate Principal
Balance of each such Class has been reduced to zero.

(iii)        The Group II Principal Distribution Amount shall be distributed in the following order of priority:

first, to the Supplemental Interest Trust, an amount equal to the Group II Allocation Percentage of (i) any Net Swap Payment owed to the Swap Provider and (ii) any Swap Termination Payment owed to the Swap Provider not due to a 

 

Swap Provider Trigger Event to the extent not paid from the Interest Remittance Amount on such Distribution Date;

second, sequentially, to the Holders of the Class A-2A Class A-2B, Class A-2C and Class A-2D Certificates, in that order, until the Certificate Principal Balance of each such Class has been reduced to zero; and

third, concurrently, (i) to the Holders of the Class A-1A Certificates and (ii) to the Holders of the Class A-1B1 Certificates and Class A-1B2 Certificates after taking into account the distribution of the Group IA Principal Distribution Amount as described in Section 5.01(c)(6)(i) above and the Group IB Principal Distribution Amount as described in Section 5.01(c)(6)(ii) above, on a pro rata basis based on the Certificate Principal Balance of each such Class, until the Certificate Principal Balance of each such Class has been reduced to zero; provided, however that if a Sequential Trigger Event is in effect on such Distribution Date, the pro rata allocation to the Class A-1B1 Certificates and Class A-1B2 Certificates pursuant to this clause third shall be based on the total Certificate Principal Balance of the Class A-1B1 Certificates and Class A-1B2
Certificates, but shall be distributed sequentially to the Class A-1B1 Certificates and Class A-1B2 Certificates, in that order, until the Certificate Principal Balance of each such Class has been reduced to zero.

(iv)        The Group IA Principal Distribution Amount, Group IB Principal Distribution Amount and Group II Principal Distribution Amount remaining after distributions pursuant to Sections 5.01(c)(6)(i), (ii) and (iii) above shall be distributed in the following order of priority:

sequentially, to the Holders of the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class B-1, Class B-2, Class B-3, Class B-4 and Class B-5 Certificates, in that order, until the Certificate Principal Balance of each such Class has been reduced to zero.

(7)        On each Distribution Date (a) on or after the Stepdown Date and (b) on which a Trigger Event is not in effect, the Securities Administrator shall withdraw from the Distribution Account to the extent on deposit therein an amount equal to the Group IA Principal Distribution Amount, Group IB Principal Distribution Amount and Group II Principal Distribution Amount and distribute to the Certificateholders the following amounts, in the following order of priority:

(i)         The Group IA Principal Distribution Amount shall be distributed in the following order of priority:

first, to the Supplemental Interest Trust, an amount equal to the Group IA Allocation Percentage of (i) any Net Swap Payment owed to the Swap Provider and (ii) any Swap Termination Payment owed to the Swap Provider not due to a Swap Provider Trigger Event to the extent not paid from the Interest Remittance Amount on such Distribution Date;

 

 

second, to the Holders of the Class A-1A Certificates, the Class A-1A Principal Distribution Amount, until the Certificate Principal Balance of such Class has been reduced to zero; and 

third, up to an amount equal to sum of the Class A-1B Principal Distribution Amount and the Class A-2 Principal Distribution Amount, if any, remaining unpaid on such Distribution Date, and after taking into account the distribution of the Group IB Principal Distribution Amount pursuant to Section 5.01(c)(7)(ii) below and the Group II Principal Distribution Amount pursuant to Section 5.01(c)(7)(iii) below, concurrently, (i) to the Holders of the Class A-1B1 Certificates and Class A-1B2 Certificates and (ii) to the Holders of the Class A-2 Certificates, on a pro rata basis based on the Certificate Principal Balance of each such Class until the Certificate Principal Balance of each such Class has been reduced to zero; provided, however that if a Sequential Trigger Event is in effect on such Distribution Date, the pro rata allocation to the Class A-1B1 Certificates
and Class A-1B2 Certificates pursuant to this clause third shall be based on the total Certificate Principal Balance of the Class A-1B1 Certificates and Class A-1B2 Certificates, but shall be distributed sequentially to the Class A-1B1 Certificates and Class A-1B2 Certificates, in that order, until the Certificate Principal Balance of each such Class has been reduced to zero; provided, further that the pro rata allocation to the Class A-2 Certificates pursuant to this clause third shall be based on the total Certificate Principal Balance of the Class A-2 Certificates, but shall be distributed sequentially to the Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates, in that order, until the Certificate Principal Balance of each such Class has been reduced to zero.

(ii)         The Group IB Principal Distribution Amount shall be distributed in the following order of priority:

first, to the Supplemental Interest Trust, an amount equal to the Group IB Allocation Percentage of (i) any Net Swap Payment owed to the Swap Provider and (ii) any Swap Termination Payment owed to the Swap Provider not due to a Swap Provider Trigger Event to the extent not paid from the Interest Remittance Amount on such Distribution Date;

second, concurrently to the Holders of the Class A-1B1 Certificates and Class A-1B2 Certificates, on a pro rata basis based on the Certificate Principal Balance of each such Class, the Class A-1B Principal Distribution Amount until the Certificate Principal Balance of each such Class has been reduced to zero; provided, however that if a Sequential Trigger Event is in effect on such Distribution Date, the distribution to the Holders of the Class A-1B1 Certificates and Class A-1B2 Certificates pursuant to this clause second shall be made on a sequential basis to the Class A-1B1 Certificates and Class A-1B2 Certificates, in that order, until the Certificate Principal Balance of each such Class has been reduced to zero; and

 

 

third, up to an amount equal to sum of the Class A-1A Principal Distribution Amount and the Class A-2 Principal Distribution Amount, if any, remaining unpaid on such Distribution Date, and after taking into account the distribution of the Group IA Principal Distribution Amount pursuant to Section 5.01(c)(7)(i) above and the Group II Principal Distribution Amount pursuant to Section 5.01(c)(7)(iii) below, concurrently, (i) to the Holders of the Class A-1A Certificates and (ii) to the Holders of the Class A-2 Certificates, on a pro rata basis based on the Certificate Principal Balance of each such Class until the Certificate Principal Balance of each such Class has been reduced to zero; provided, however that the pro rata allocation to the Class A-2 Certificates pursuant to this clause third shall be based on the total Certificate Principal Balance of the Class A-2
Certificates, but shall be distributed sequentially to the Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates, in that order, until the Certificate Principal Balance of each such Class has been reduced to zero.

(iii)        The Group II Principal Distribution Amount shall be distributed in the following order of priority:

first, to the Supplemental Interest Trust, an amount equal to the Group II Allocation Percentage of (i) any Net Swap Payment owed to the Swap Provider and (ii) any Swap Termination Payment owed to the Swap Provider not due to a Swap Provider Trigger Event to the extent not paid from the Interest Remittance Amount on such Distribution Date;

second, sequentially, to the Holders of the Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates, in that order, the Class A-2 Principal Distribution Amount, until the Certificate Principal Balance of each such Class has been reduced to zero; and

third, up to an amount equal to sum of the Class A-1A Principal Distribution Amount and the Class A-1B Principal Distribution Amount, if any, remaining unpaid on such Distribution Date, and after taking into account the distribution of the Group IA Principal Distribution Amount pursuant to Section 5.01(c)(7)(i) above and the Group IB Principal Distribution Amount pursuant to Section 5.01(c)(7)(ii) above, concurrently, (i) to the Holders of the Class A-1A Certificates and (ii) to the Holders of the Class A-1B1 Certificates and Class A-1B2 Certificates, on a pro rata basis based on the Certificate Principal Balance of each such Class until the Certificate Principal Balance of each such Class has been reduced to zero; provided, however that if a Sequential Trigger Event is in effect on such Distribution Date, the pro rata allocation to the Class A-1B1 Certificates
and Class A-1B2 Certificates pursuant to this clause third shall be based on the total Certificate Principal Balance of the Class A-1B1 Certificates and Class A-1B2 Certificates, but shall be distributed sequentially to the Class A-1B1 Certificates and Class A-1B2 Certificates, in that order, until the Certificate Principal Balance of each such Class has been reduced to zero.

 

 

(iv)        The Principal Distribution Amount remaining after distributions pursuant to Sections 5.01(c)(7)(i), (ii) and (iii) above shall be distributed in the following order of priority:

first, to the Holders of the Class M-1 Certificates, the lesser of (x) the remaining Principal Distribution Amount and (y) the Class M-1 Principal Distribution Amount, until the Certificate Principal Balance of the Class M-1 Certificates has been reduced to zero;

second, to the Holders of the Class M-2 Certificates, the lesser of (x) the excess of (i) the remaining Principal Distribution Amount over (ii) the amounts distributed to the Holders of the Class M-1 Certificates under clause first above, and (y) the Class M-2 Principal Distribution Amount, until the Certificate Principal Balance of the Class M-2 Certificates has been reduced to zero;

third, to the Holders of the Class M-3 Certificates, the lesser of (x) the excess of (i) the remaining Principal Distribution Amount over (ii) the sum of the amounts distributed to the Holders of the Class M-1 Certificates under clause first above and to the Holders of the Class M-2 Certificates under clause second above, and (y) the Class M-3 Principal Distribution Amount, until the Certificate Principal Balance of the Class M-3 Certificates has been reduced to zero;

fourth, to the Holders of the Class M-4 Certificates, the lesser of (x) the excess of (i) the remaining Principal Distribution Amount over (ii) the sum of the amounts distributed to the Holders of the Class M-1 Certificates under clause first above, to the Holders of the Class M-2 Certificates under clause second above and to the Holders of the Class M-3 Certificates under clause third above, and (y) the Class M-4 Principal Distribution Amount, until the Certificate Principal Balance of the Class M-4 Certificates has been reduced to zero;

fifth, to the Holders of the Class M-5 Certificates, the lesser of (x) the excess of (i) the remaining Principal Distribution Amount over (ii) the sum of the amounts distributed to the Holders of the Class M-1 Certificates under clause first above, to the Holders of the Class M-2 Certificates under clause second above, to the Holders of the Class M-3 Certificates under clause third above and to the Holders of the Class M-4 Certificates under clause fourth above, and (y) the Class M-5 Principal Distribution Amount, until the Certificate Principal Balance of the Class M-5 Certificates has been reduced to zero;

sixth, to the Holders of the Class M-6 Certificates, the lesser of (x) the excess of (i) the remaining Principal Distribution Amount over (ii) the sum of the amounts distributed to the Holders of the Class M-1 Certificates under clause first above, to the Holders of the Class M-2 Certificates under clause second above, to the Holders of the Class M-3 Certificates under clause third above, to the  Holders of the Class M-4 Certificates under clause fourth above and to the  Holders of the Class M-5 Certificates under clause fifth above, and (y) the Class M-6 Principal 

 

Distribution Amount, until the Certificate Principal Balance of the Class M-6 Certificates has been reduced to zero; 

seventh, to the Holders of the Class B-1 Certificates, the lesser of (x) the excess of (i) the remaining Principal Distribution Amount over (ii) the sum of the amounts distributed to the Holders of the Class M-1 Certificates under clause first above, to the Holders of the Class M-2 Certificates under clause second above, to the Holders of the Class M-3 Certificates under clause third above, to the Holders of the Class M-4 Certificates under clause fourth above, to the Holders of the Class M-5 Certificates under clause fifth above and to the Holders of the Class M-6 Certificates under clause sixth above, and (y) the Class B-1 Principal Distribution Amount, until the Certificate Principal Balance of the Class B-1 Certificates has been reduced to zero;

eighth, to the Holders of the Class B-2 Certificates, the lesser of (x) the excess of (i) the remaining Principal Distribution Amount over (ii) the sum of the amounts distributed to the Holders of the Class M-1 Certificates under clause first above, to the Holders of the Class M-2 Certificates under clause second above, to the Holders of the Class M-3 Certificates under clause third above, to the Holders of the Class M-4 Certificates under clause fourth above, to the Holders of the Class M-5 Certificates under clause fifth above, to the Holders of the Class M-6 Certificates under clause sixth above and to the Holders of the Class B-1 Certificates under clause seventh above, and (y) the Class B-2 Principal Distribution Amount, until the Certificate Principal Balance of the Class B-2 Certificates has been reduced to zero;

ninth, to the Holders of the Class B-3 Certificates, the lesser of (x) the excess of (i) the remaining Principal Distribution Amount over (ii) the sum of the amounts distributed to the Holders of the Class M-1 Certificates under clause first above, to the Holders of the Class M-2 Certificates under clause second above, to the Holders of the Class M-3 Certificates under clause third above, to the Holders of the Class M-4 Certificates under clause fourth above, to the Holders of the Class M-5 Certificates under clause fifth above, to the Holders of the Class M-6 Certificates under clause sixth above, to the Holders of the Class B-1 Certificates under clause seventh above and to the Holders of the Class B-2 Certificates under clause eighth above, and (y) the Class B-3 Principal Distribution Amount, until the Certificate Principal Balance of the Class B-3
Certificates has been reduced to zero;

tenth, to the Holders of the Class B-4 Certificates, the lesser of (x) the excess of (i) the remaining Principal Distribution Amount over (ii) the sum of the amounts distributed to the Holders of the Class M-1 Certificates under clause first above, to the Holders of the Class M-2 Certificates under clause second above, to the Holders of the Class M-3 Certificates under clause third above, to the Holders of the Class M-4 Certificates under clause fourth above, to the Holders of the Class M-5 Certificates under clause fifth above, to the Holders of the Class M-6 Certificates under clause sixth above, to the Holders of the Class B-1 Certificates 

 

under clause seventh above, to the Holders of the Class B-2 Certificates under clause eighth above and to the Holders of the Class B-3 Certificates under clause ninth above, and (y) the Class B-4 Principal Distribution Amount, until the Certificate Principal Balance of the Class B-4 Certificates has been reduced to zero; and

eleventh, to the Holders of the Class B-5 Certificates, the lesser of (x) the excess of (i) the remaining Principal Distribution Amount over (ii) the sum of the amounts distributed to the Holders of the Class M-1 Certificates under clause first above, to the Holders of the Class M-2 Certificates under clause second above, to the Holders of the Class M-3 Certificates under clause third above, to the Holders of the Class M-4 Certificates under clause fourth above, to the Holders of the Class M-5 Certificates under clause fifth above, to the Holders of the Class M-6 Certificates under clause sixth above, to the Holders of the Class B-1 Certificates under clause seventh above, to the Holders of the Class B-2 Certificates under clause eighth above, to the Holders of the Class B-3 Certificates under clause ninth above and to the Holders of the Class B-4 Certificates
under clause tenth above, and (y) the Class B-5 Principal Distribution Amount, until the Certificate Principal Balance of the Class B-5 Certificates has been reduced to zero; 

(8)        On each Distribution Date, the Net Monthly Excess Cashflow (or, in the case of clause (i) below, the Net Monthly Excess Cashflow exclusive of any Overcollateralization Reduction Amount) shall be distributed as follows:

(i)         to the Holders of the Class or Classes of Certificates then entitled to receive distributions in respect of principal, in an amount equal to any Extra Principal Distribution Amount, payable to such Holders in accordance with the priorities set forth in Section 5.01(d) below;

(ii)         sequentially, to the Holders of the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class B-1, Class B-2, Class B-3, Class B-4 and Class B-5 Certificates, in that order, in an amount equal to the Interest Carry Forward Amount allocable to each such Class;

(iii)        sequentially, to the Holders of the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class B-1, Class B-2, Class B-3, Class B-4 and Class B-5 Certificates, in that order, in an amount equal to the Allocated Realized Loss Amount allocable to each such Class;

(iv)        concurrently, to the Holders of the Class A Certificates, in an amount equal to such Certificates’ allocated share of any Prepayment Interest Shortfalls on the Mortgage Loans to the extent not covered by payments pursuant to Section 3.22 or 4.18 of this Agreement and any shortfalls resulting from the application of the Relief Act or similar state or local law or the bankruptcy code with respect to the Mortgage Loans to the extent not previously reimbursed pursuant to Section 1.02;

 

 

(v)        sequentially, to the Holders of the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class B-1, Class B-2, Class B-3, Class B-4 and Class B-5 Certificates, in that order, in an amount equal to such certificates’ share of any Prepayment Interest Shortfalls on the Mortgage Loans to the extent not covered by payments pursuant to Sections 3.22 or Section 4.18 of this Agreement and any Relief Act Interest Shortfall, in each case that were allocated to such Class for such Distribution Date and for any prior Distribution Date, to the extent not previously reimbursed pursuant to Section 1.02;

(vi)        to the Reserve Fund, the amount by which the Net WAC Rate Carryover Amounts, if any, with respect to the Offered Certificates and the Class B Certificates exceeds the amount in the Reserve Fund that was not distributed on prior Distribution Dates;

(vii)       to the Supplemental Interest Trust, an amount equal to any Swap Termination Payment owed to the Swap Provider due to a Swap Provider Trigger Event pursuant to the Swap Agreement; 

(viii)       to the Holders of the Class CE Certificates the Interest Distribution Amount and any Overcollateralization Reduction Amount for such Distribution Date; and

(ix)        to the Holders of the Class R Certificates, in respect of the Class R-III Interest, any remaining amounts; provided that if such Distribution Date is the Distribution Date immediately following the expiration of the latest Prepayment Charge term as identified on the Mortgage Loan Schedule or any Distribution Date thereafter, then any such remaining amounts will be distributed first, to the Holders of the Class P Certificates, until the Certificate Principal Balance thereof has been reduced to zero and second, to the Holders of the Class R Certificates.

The Class CE Certificates are intended to receive all principal and interest received by the Trust on the Mortgage Loans that is not otherwise distributable to any other Class of Regular Certificates or REMIC Regular Interests. If the Securities Administrator determines that the Residual Certificates are entitled to any distributions on any Distribution Date other than the final Distribution Date, the Securities Administrator, prior to any such distribution to any Residual Certificate, shall notify the Depositor of such impending distribution.  Upon such notification, the Depositor will prepare and request that the other parties hereto enter into an amendment to the Pooling and Servicing Agreement pursuant to Section 12.01, to revise such mistake in the distribution provisions.

On each Distribution Date, after making the distributions of the Available Distribution Amount as set forth above, the Securities Administrator will first, withdraw from the Reserve Fund all income from the investment of funds in the Reserve Fund and distribute such amount to the Holders of the Class CE Certificates, and second, withdraw from the Reserve Fund, to the extent of amounts remaining on deposit therein, the amount of any Net WAC Rate Carryover Amount for such Distribution Date and distribute such amount first, concurrently to the Class A Certificates, on a pro rata basis; second, to the Class M-1 Certificates, third, to the 

 

Class M-2 Certificates, fourth, to the Class M-3 Certificates, fifth, to the Class M-4 Certificates, sixth, to the Class M-5 Certificates, seventh, to the Class M-6 Certificates, eighth, to the Class B-1 Certificates, ninth, to the Class B-2 Certificates, tenth, to the Class B-3 Certificates, eleventh, to the Class B-4 Certificates and twelfth, to the Class B-5 Certificates, in each case to the extent to the extent any Net WAC Rate Carryover Amount is allocable to each such Class.

(d)        (i)  On each Distribution Date (a) prior to the Stepdown Date or (b) on which a Trigger Event is in effect, the Extra Principal Distribution Amount shall be distributed in the following order of priority;

first, concurrently, to the holders of the Class A Certificates as follows:

 

(1)        for each Distribution Date on which a Sequential Trigger Event is not in effect for such Distribution Date, concurrently to the Holders of the Class A Certificates, on a pro rata basis, based on the Certificate Principal Balance of each such Class, until the Certificate Principal Balance of each such Class has been reduced to zero; provided, however that the pro rata allocation to the Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates pursuant to this clause shall be based on the total Certificate Principal Balance of the Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates, but shall be distributed to the Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates on a sequential basis, in that order, until the Certificate Principal Balance of each such Class has been reduced to zero; and

 

(2)        for each Distribution Date on which a Sequential Trigger Event is in effect for such Distribution Date, concurrently to the Holders of the Class A Certificates, on a pro rata basis, based on the Certificate Principal Balance of each such Class, until the Certificate Principal Balance of each such Class has been reduced to zero; provided, however that the pro rata allocation to the Class A-1B1 Certificates and Class A-1B2 Certificates pursuant to this clause shall be based on the total Certificate Principal Balance of the Class A-1B1 Certificates and Class A-1B2 Certificates, but shall be distributed to the Class A-1B1 Certificates and the Class A-1B2 Certificates on a sequential basis, in that order, until the Certificate Principal Balances of the Class A-1B1 Certificates and Class A-1B2 Certificates have been reduced
to zero; provided, further that the pro rata allocation to the Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates pursuant to this clause shall be based on the total Certificate Principal Balance of the Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates, but shall be distributed to the Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates on a sequential basis, in that order, until the Certificate Principal Balance of each such Class has been reduced to zero.

 

second, sequentially, to the Holders of the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class B-1, Class B-2, Class B-3, Class B-4 and Class B-5 Certificates, in that order, until the Certificate Principal Balance of each such Class has been reduced to zero.

 

(ii)         On each Distribution Date (a) on or after the Stepdown Date and (b) on which a Trigger Event is not in effect, distributions of principal to the extent of the Extra Principal Distribution Amount shall be distributed in the following order of priority: 

 

 

first, concurrently to the Class A Certificates as follows:

(1) the lesser of (x) the Group IA Principal Distribution Amount and (y) the Class A-1A Principal Distribution Amount, shall be distributed to the Holders of the Class A-1A Certificates, until the Certificate Principal Balance of the Class A-1A Certificates has been reduced to zero;

(2) the lesser of (x) the Group IB Principal Distribution Amount and (y) the Class A-1B Principal Distribution Amount, shall be distributed concurrently to the Holders of the Class A-1B1 Certificates and Class A-1B2 Certificates on a pro rata basis based on the Certificate Principal Balance of each such Class until the Certificate Principal Balance of each such Class has been reduced to zero; provided, however that if a Sequential Trigger Event is in effect on such Distribution Date, the distribution to the Holders of the Class A-1B1 Certificates and Class A-1B2 Certificates pursuant to this clause first shall be made on a sequential basis to the Class A-1B1 Certificates and Class A-1B2 Certificates, in that order, until the Certificate Principal Balance of each such Class has been reduced to zero; and

(3) the lesser of (x) the Group II Principal Distribution Amount and (y) the Class A-2 Principal Distribution Amount, shall be distributed sequentially to the Holders of the Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates, in that order, until the Certificate Principal Balance of each such Class has been reduced to zero;

second, the lesser of (x) the excess of (i) the Principal Distribution Amount over (ii) the amount distributed to the Holders of the Class A Certificates pursuant to clause first of this Section 5.01(d)(ii), and (y) the Class M-1 Principal Distribution Amount, shall be distributed to the Holders of the Class M-1 Certificates, until the Certificate Principal Balance of such Class has been reduced to zero;

third, the lesser of (x) the excess of (i) the Principal Distribution Amount over (ii) the sum of the amounts distributed to the Holders of the Class A Certificates pursuant to clause first of this Section 5.01(d)(ii) and to the Holders of the Class M-1 Certificates pursuant to clause second of this Section 5.01(d)(ii), and (y) the Class M-2 Principal Distribution Amount, shall be distributed to the Holders of the Class M-2 Certificates, until the Certificate Principal Balance of such Class has been reduced to zero;

fourth, the lesser of (x) the excess of (i) the Principal Distribution Amount over (ii) the sum of the amounts distributed to the Holders of the Class A Certificates pursuant to clause first of this Section 5.01(d)(ii), to the Holders of the Class M-1 Certificates pursuant to clause second of this Section 5.01(d)(ii) and to the Holders of the Class M-2 Certificates pursuant to clause third of this Section 5.01(d)(ii), and (y) the Class M-3 Principal Distribution Amount, shall be distributed to the Holders of the Class M-3 Certificates, until the Certificate Principal Balance of such Class has been reduced to zero;

 

 

fifth, the lesser of (x) the excess of (i) the Principal Distribution Amount over (ii) the sum of the amounts distributed to the Holders of the Class A Certificates pursuant to clause first of this Section 5.01(d)(ii), to the Holders of the Class M-1 Certificates pursuant to clause second of this Section 5.01(d)(ii), to the Holders of the Class M-2 Certificates pursuant to clause third of this Section 5.01(d)(ii) and to the Holders of the Class M-3 Certificates pursuant to clause fourth of this Section 5.01(d)(ii), and (y) the Class M-4 Principal Distribution Amount, shall be distributed to the Holders of the Class M-4 Certificates, until the Certificate Principal Balance of such Class has been reduced to zero;

sixth, the lesser of (x) the excess of (i) the Principal Distribution Amount over (ii) the sum of the amounts distributed to the Holders of the Class A Certificates pursuant to clause first of this Section 5.01(d)(ii), to the Holders of the Class M-1 Certificates pursuant to clause second of this Section 5.01(d)(ii), to the Holders of the Class M-2 Certificates pursuant to clause third of this Section 5.01(d)(ii), to the Holders of the Class M-3 Certificates pursuant to clause fourth of this Section 5.01(d)(ii) and to the Holders of the Class M-4 Certificates pursuant to clause fifth of this Section 5.01(d)(ii), and (y) the Class M-5 Principal Distribution Amount, shall be distributed to the Holders of the Class M-5 Certificates, until the Certificate Principal Balance of such Class has been reduced to zero;

seventh, the lesser of (x) the excess of (i) the Principal Distribution Amount over (ii) the sum of the amounts distributed to the Holders of the Class A Certificates pursuant to clause first of this Section 5.01(d)(ii), to the Holders of the Class M-1 Certificates pursuant to clause second of this Section 5.01(d)(ii), to the Holders of the Class M-2 Certificates pursuant to clause third of this Section 5.01(d)(ii), to the Holders of the Class M-3 Certificates pursuant to clause fourth of this Section 5.01(d)(ii), to the Holders of the Class M-4 Certificates pursuant to clause fifth of this Section 5.01(d)(ii) and to the Holders of the Class M-5 Certificates pursuant to clause sixth of this Section 5.01(d)(ii), and (y) the Class M-6 Principal Distribution Amount, shall be distributed to the Holders of the Class M-6 Certificates, until the Certificate Principal
Balance of such Class has been reduced to zero; 

eighth, the lesser of (x) the excess of (i) the Principal Distribution Amount over (ii) the sum of the amounts distributed to the Holders of the Class A Certificates pursuant to clause first of this Section 5.01(d)(ii), to the Holders of the Class M-1 Certificates pursuant to clause second of this Section 5.01(d)(ii), to the Holders of the Class M-2 Certificates pursuant to clause third of this Section 5.01(d)(ii), to the Holders of the Class M-3 Certificates pursuant to clause fourth of this Section 5.01(d)(ii), to the Holders of the Class M-4 Certificates pursuant to clause fifth of this Section 5.01(d)(ii), to the Holders of the Class M-5 Certificates pursuant to clause sixth of this Section 5.01(d)(ii) and to the Holders of the Class M-6 Certificates pursuant to clause seventh of this Section 5.01(d)(ii), and (y) the Class B-1 Principal Distribution Amount,
shall be distributed to the Holders of the Class B-1 Certificates, until the Certificate Principal Balance of such Class has been reduced to zero;

 

 

ninth, the lesser of (x) the excess of (i) the Principal Distribution Amount over (ii) the sum of the amounts distributed to the Holders of the Class A Certificates pursuant to clause first of this Section 5.01(d)(ii), to the Holders of the Class M-1 Certificates pursuant to clause second of this Section 5.01(d)(ii), to the Holders of the Class M-2 Certificates pursuant to clause third of this Section 5.01(d)(ii), to the Holders of the Class M-3 Certificates pursuant to clause fourth of this Section 5.01(d)(ii), to the Holders of the Class M-4 Certificates pursuant to clause fifth of this Section 5.01(d)(ii), to the Holders of the Class M-5 Certificates pursuant to clause sixth of this Section 5.01(d)(ii), to the Holders of the Class M-6 Certificates pursuant to clause seventh of this Section 5.01(d)(ii) and to the Holders of the Class B-1 Certificates pursuant
to clause eighth of this Section 5.01(d)(ii), and (y) the Class B-2 Principal Distribution Amount, shall be distributed to the Holders of the Class B-2 Certificates, until the Certificate Principal Balance of such Class has been reduced to zero;

tenth, the lesser of (x) the excess of (i) the Principal Distribution Amount over (ii) the sum of the amounts distributed to the Holders of the Class A Certificates pursuant to clause first of this Section 5.01(d)(ii), to the Holders of the Class M-1 Certificates pursuant to clause second of this Section 5.01(d)(ii), to the Holders of the Class M-2 Certificates pursuant to clause third of this Section 5.01(d)(ii), to the Holders of the Class M-3 Certificates pursuant to clause fourth of this Section 5.01(d)(ii), to the Holders of the Class M-4 Certificates pursuant to clause fifth of this Section 5.01(d)(ii), to the Holders of the Class M-5 Certificates pursuant to clause sixth of this Section 5.01(d)(ii), to the Holders of the Class M-6 Certificates pursuant to clause seventh of this Section 5.01(d)(ii), to the Holders of the Class B-1 Certificates pursuant to
clause eighth of this Section 5.01(d)(ii) and to the Holders of the Class B-2 Certificates pursuant to clause ninth of this Section 5.01(d)(ii), and (y) the Class B-3 Principal Distribution Amount, shall be distributed to the Holders of the Class B-3 Certificates, until the Certificate Principal Balance of such Class has been reduced to zero;

eleventh, the lesser of (x) the excess of (i) the Principal Distribution Amount over (ii) the sum of the amounts distributed to the Holders of the Class A Certificates pursuant to clause first of this Section 5.01(d)(ii), to the Holders of the Class M-1 Certificates pursuant to clause second of this Section 5.01(d)(ii), to the Holders of the Class M-2 Certificates pursuant to clause third of this Section 5.01(d)(ii), to the Holders of the Class M-3 Certificates pursuant to clause fourth of this Section 5.01(d)(ii), to the Holders of the Class M-4 Certificates pursuant to clause fifth of this Section 5.01(d)(ii), to the Holders of the Class M-5 Certificates pursuant to clause sixth of this Section 5.01(d)(ii), to the Holders of the Class M-6 Certificates pursuant to clause seventh of this Section 5.01(d)(ii), to the Holders of the Class B-1 Certificates pursuant
to clause eighth of this Section 5.01(d)(ii), to the Holders of the Class B-2 Certificates pursuant to clause ninth of this Section 5.01(d)(ii) and to the Holders of the Class B-3 Certificates pursuant to clause tenth of this Section 5.01(d)(ii), and (y) the Class B-4 Principal Distribution Amount, shall be distributed to the Holders of the Class B-4 

 

Certificates, until the Certificate Principal Balance of such Class has been reduced to zero; and

twelfth, the lesser of (x) the excess of (i) the Principal Distribution Amount over (ii) the sum of the amounts distributed to the Holders of the Class A Certificates pursuant to clause first of this Section 5.01(d)(ii), to the Holders of the Class M-1 Certificates pursuant to clause second of this Section 5.01(d)(ii), to the Holders of the Class M-2 Certificates pursuant to clause third of this Section 5.01(d)(ii), to the Holders of the Class M-3 Certificates pursuant to clause fourth of this Section 5.01(d)(ii), to the Holders of the Class M-4 Certificates pursuant to clause fifth of this Section 5.01(d)(ii), to the Holders of the Class M-5 Certificates pursuant to clause sixth of this Section 5.01(d)(ii), to the Holders of the Class M-6 Certificates pursuant to clause seventh of this Section 5.01(d)(ii), to the Holders of the Class B-1 Certificates pursuant to
clause eighth of this Section 5.01(d)(ii), to the Holders of the Class B-2 Certificates pursuant to clause ninth of this Section 5.01(d)(ii), to the Holders of the Class B-3 Certificates pursuant to clause tenth of this Section 5.01(d)(ii) and to the Holders of the Class B-4 Certificates pursuant to clause eleventh of this Section 5.01(d)(ii), and (y) the Class B-5 Principal Distribution Amount, shall be distributed to the Holders of the Class B-5 Certificates, until the Certificate Principal Balance of such Class has been reduced to zero.

(e)        As described in Section 5.01(c)(2), (3), (4), (6) and (7) above, Net Swap Payments and Swap Termination Payments (other than Swap Termination Payments resulting from a Swap Provider Trigger Event) payable by the Supplemental Interest Trust to the Swap Provider pursuant to the Swap Agreement shall be deducted from the Interest Remittance Amount, and to the extent of any such remaining amounts due, from the Principal Remittance Amount, prior to any distributions to the Certificateholders. On each Distribution Date, such amounts will be remitted to the Supplemental Interest Trust, first to make any Net Swap Payment owed to the Swap Provider pursuant to the Swap Agreement for such Distribution Date, and second to make any Swap Termination Payment (not due to a Swap Provider Trigger Event) owed to the Swap Provider pursuant to the Swap
Agreement for such Distribution Date.  Any Swap Termination Payment triggered by a Swap Provider Trigger Event owed to the Swap Provider pursuant to the Swap Agreement will be subordinated to distributions to the Holders of the Offered Certificates and Class B Certificates and shall be paid pursuant to Section 5.01(c)(8)(vii).

(f)         On each Distribution Date, to the extent required, following the distribution of the Net Monthly Excess Cashflow and withdrawals from the Reserve Fund, the Securities Administrator will withdraw any amounts in the Supplemental Interest Trust and distribute such amounts in the following order of priority:  

first, to the Swap Provider, any Net Swap Payment owed to the Swap Provider pursuant to the Swap Agreement for such Distribution Date;

second, to the Swap Provider, any Swap Termination Payment owed to the Swap Provider not due to a Swap Provider Trigger Event pursuant to the Swap Agreement;

 

 

third, concurrently, to each Class of Class A Certificates, the related Senior Interest Distribution Amount remaining undistributed after the distributions of the Group IA Interest Remittance Amount, the Group IB Interest Remittance Amount and the Group II Interest Remittance Amount, on a pro rata basis based on such respective remaining Senior Interest Distribution Amounts;

fourth, sequentially, to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class B-1, Class B-2, Class B-3, Class B-4 and Class B-5 Certificates, in that order, the related Interest Distribution Amount and Interest Carry Forward Amount, to the extent remaining undistributed after the distributions of the Group IA Interest Remittance Amount, the Group IB Interest Remittance Amount, the Group II Interest Remittance Amount and the Net Monthly Excess Cashflow;

fifth, concurrently, to each Class of Class A Certificates, the related Net WAC Rate Carryover Amount, to the extent remaining undistributed after distributions are made from the Reserve Fund, on a pro rata basis based on such respective Net WAC Rate Carryover Amounts remaining;

sixth, sequentially, to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class B-1, Class B-2, Class B-3, Class B-4 and Class B-5 Certificates, in that order, the related Net WAC Rate Carryover Amount, to the extent remaining undistributed after distributions are made from the Reserve Fund;

seventh, to the holders of the Class or Classes of Certificates then entitled to receive distributions in respect of principal, in an amount necessary to maintain the Required Overcollateralization Amount after taking into account distributions made pursuant to Section 5.01(c)(8)(i) above;

eighth, sequentially to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class B-1, Class B-2, Class B-3, Class B-4 and Class B-5 Certificates, in that order, in each case up to the related Allocated Realized Loss Amount related to such Certificates for such Distribution Date remaining undistributed after distribution of the Net Monthly Excess Cashflow; 

ninth, to the Swap Provider, an amount equal to any Swap Termination Payment owed to the Swap Provider due to a Swap Provider Trigger Event pursuant to the Swap Agreement; and

tenth, to the Class CE Certificates, any remaining amounts.

(g)        On each Distribution Date, the Securities Administrator shall withdraw any amounts then on deposit in the Distribution Account that represent Prepayment Charges and shall distribute such amounts to the Class P Certificateholders as described above.

(h)        All distributions made with respect to each Class of Certificates on each Distribution Date shall be allocated pro rata among the outstanding Certificates in such Class based on their respective Percentage Interests. Payments in respect of each Class of Certificates on each Distribution Date will be made to the Holders of the respective Class of record on the 

 

related Record Date (except as otherwise provided in Section 5.01(j) or Section 10.01 respecting the final distribution on such Class), based on the aggregate Percentage Interest represented by their respective Certificates, and shall be made by wire transfer of immediately available funds to the account of any such Holder at a bank or other entity having appropriate facilities therefor, if such Holder shall have so notified the Securities Administrator in writing at least five (5) Business Days prior to the Record Date immediately prior to such Distribution Date and is the registered owner of Certificates having an initial aggregate Certificate Principal Balance that is in excess of the lesser of (i) $5,000,000 or (ii) two-thirds of the initial Certificate Principal Balance of such Class of Certificates, or otherwise by check mailed by first class mail to the address of such Holder appearing in the
Certificate Register. The final distribution on each Certificate will be made in like manner, but only upon presentment and surrender of such Certificate at the Corporate Trust Office of the Securities Administrator or such other location specified in the notice to Certificateholders of such final distribution.

Each distribution with respect to a Book-Entry Certificate shall be paid to the Depository, as Holder thereof, and the Depository shall be responsible for crediting the amount of such distribution to the accounts of its Depository Participants in accordance with its normal procedures. Each Depository Participant shall be responsible for disbursing such distribution to the Certificate Owners that it represents and to each indirect participating brokerage firm (a “brokerage firm” or “indirect participating firm”) for which it acts as agent. Each brokerage firm shall be responsible for disbursing funds to the Certificate Owners that it represents. None of the Trustee, the Depositor, the Servicer, the Securities Administrator or the Master Servicer shall have any responsibility therefor except as otherwise provided by this Agreement or applicable law.

(i)         The rights of the Certificateholders to receive distributions in respect of the Certificates, and all interests of the Certificateholders in such distributions, shall be as set forth in this Agreement. None of the Holders of any Class of Certificates, the Trustee, the Servicer, the Securities Administrator or the Master Servicer shall in any way be responsible or liable to the Holders of any other Class of Certificates in respect of amounts properly previously distributed on the Certificates.

(j)         Except as otherwise provided in Section 10.01, whenever the Securities Administrator expects that the final distribution with respect to any Class of Certificates will be made on the next Distribution Date, the Securities Administrator shall, no later than three (3) days before the related Distribution Date, mail to each Holder on such date of such Class of Certificates a notice to the effect that:

(i)                the Securities Administrator expects that the final distribution with respect to such Class of Certificates will be made on such Distribution Date but only upon presentation and surrender of such Certificates at the office of the Securities Administrator therein specified, and

(ii)               no interest shall accrue on such Certificates from and after the end of the related Interest Accrual Period.

 

 

Any funds not distributed to any Holder or Holders of Certificates of such Class on such Distribution Date because of the failure of such Holder or Holders to tender their Certificates shall, on such date, be set aside and held in trust by the Securities Administrator and credited to the account of the appropriate non-tendering Holder or Holders. If any Certificates as to which notice has been given pursuant to this Section 5.01(j) shall not have been surrendered for cancellation within six months after the time specified in such notice, the Securities Administrator shall mail a second notice to the remaining non-tendering Certificateholders to surrender their Certificates for cancellation in order to receive the final distribution with respect thereto. If within one year after the second notice all such Certificates shall not have been surrendered for cancellation, the Securities
Administrator shall, directly or through an agent, mail a final notice to the remaining non-tendering Certificateholders concerning surrender of their Certificates but shall continue to hold any remaining funds for the benefit of non-tendering Certificateholders.  The costs and expenses of maintaining the funds in trust and of contacting such Certificateholders shall be paid out of the assets remaining in such trust fund. If within one year after the final notice any such Certificates shall not have been surrendered for cancellation, the Securities Administrator shall pay to the Depositor all such amounts, and all rights of non-tendering Certificateholders in or to such amounts shall thereupon cease. No interest shall accrue or be payable to any Certificateholder on any amount held in trust by the Securities Administrator as a result of such Certificateholder’s failure to surrender its Certificate(s) on the final Distribution Date for final payment thereof in accordance with this
Section 5.01(j). Any such amounts held in trust by the Securities Administrator shall be held uninvested in an Eligible Account.

(k)        Notwithstanding anything to the contrary herein, (i) in no event shall the Certificate Principal Balance of a Class A Certificate, a Mezzanine Certificate or a Class B Certificate be reduced more than once in respect of any particular amount both (a) allocated to such Certificate in respect of Realized Losses pursuant to Section 5.04 and (b) distributed to the Holder of such Certificate in reduction of the Certificate Principal Balance thereof pursuant to this Section 5.01 from Net Monthly Excess Cashflow and (ii) in no event shall the Uncertificated Balance of a REMIC Regular Interest be reduced more than once in respect of any particular amount both (a) allocated to such REMIC Regular Interest in respect of Realized Losses pursuant to Section 5.04 and (b) distributed on such REMIC Regular Interest in reduction of the Uncertificated
Balance thereof pursuant to this Section 5.01.

	
            SECTION 5.02.
 	
            Statements to Certificateholders.
 

On each Distribution Date, the Securities Administrator (based on the information set forth in the Servicer Reports for such Distribution Date and information provided by the Trustee or the Swap Provider under the Swap Agreement with respect to payments made pursuant to the Swap Agreement) shall make available to each Holder of the Certificates, a statement as to the distributions made on such Distribution Date setting forth:

(i)         the amount of the distribution made on such Distribution Date to the Holders of the Certificates of each Class allocable to principal, and the amount of the distribution made on such Distribution Date to the Holders of the Class P Certificates allocable to Prepayment Charges;

 

 

(ii)         the amount of the distribution made on such Distribution Date to the Holders of the Certificates of each Class allocable to interest;

(iii)        the aggregate Servicing Fee received by the Servicer and the Master Servicing Fee received by the Master Servicer during the related Due Period;

(iv)        the aggregate amount of P&I Advances for such Distribution Date;

	
            (v)
 	
            Reserved;
 

(vi)        the number, aggregate principal balance, weighted average remaining term to maturity and weighted average Mortgage Rate of the Mortgage Loans as of the related Due Date;

(vii)       the number and aggregate unpaid principal balance of Mortgage Loans (a) delinquent thirty (30) to fifty-nine (59) days, (b) delinquent sixty (60) to eighty-nine (89) days, (c) delinquent ninety (90) or more days, in each case, as of the last day of the preceding calendar month, (d) as to which foreclosure proceedings have been commenced and (e) with respect to which the related Mortgagor has filed for protection under applicable bankruptcy laws, with respect to whom bankruptcy proceedings are pending or with respect to whom bankruptcy protection is in force;

(viii)      with respect to any Mortgage Loan that became an REO Property during the preceding calendar month, the loan number of such Mortgage Loan, the unpaid principal balance and the Scheduled Principal Balance of such Mortgage Loan;

(ix)        if available, the book value of any REO Property as of the close of business on the last Business Day of the calendar month preceding the Distribution Date;

(x)        the aggregate amount of Principal Prepayments made during the related Prepayment Period and the aggregate amount of any Prepayment Charges received in respect thereof;

(xi)        the aggregate amount of Realized Losses incurred during the related Prepayment Period and the aggregate amount of Realized Losses incurred since the Closing Date;

(xii)       the aggregate amount of Extraordinary Trust Fund Expenses withdrawn from the Distribution Account for such Distribution Date;

 

 

(xiii)      the aggregate Certificate Principal Balance of each Class of Certificates, after giving effect to the distributions, and allocations of Realized Losses, made on such Distribution Date, separately identifying any reduction thereof due to allocations of Realized Losses;

(xiv)      the Certificate Factor for each such Class of Certificates applicable to such Distribution Date;

(xv)       the Interest Distribution Amount in respect of the Class A Certificates, the Mezzanine Certificates, the Class B Certificates, and the Class CE Certificates for such Distribution Date and the Interest Carry Forward Amount, if any, with respect to the Class A Certificates, the Mezzanine Certificates and the Class B Certificates on such Distribution Date, and in the case of the Class A Certificates, the Mezzanine Certificates and the Class B Certificates separately identifying any reduction thereof due to allocations of Realized Losses, Prepayment Interest Shortfalls, Relief Act Interest Shortfalls and Net WAC Rate Carryover Amounts;

(xvi)      the aggregate amount of any Prepayment Interest Shortfall for such Distribution Date, to the extent not covered by payments by the Servicer pursuant to Section 3.22 of this Agreement or the Master Servicer pursuant to Section 4.18 of this Agreement; 

(xvii)     the aggregate amount of Relief Act Interest Shortfalls for such Distribution Date;

(xviii)    the Required Overcollateralization Amount and the Credit Enhancement Percentage for such Distribution Date;

(xix)      the Overcollateralization Increase Amount, if any, for such Distribution Date;

(xx)       the Overcollateralization Reduction Amount, if any, for such Distribution Date;

(xxi)      the Net WAC Rate Carryover Amount, if any, for such Distribution Date;

(xxii)     the Net WAC Rate Carryover Amount, if any, outstanding after reimbursements therefor on such Distribution Date;

(xxiii)    the respective Pass-Through Rates applicable to the Class A Certificates, the Mezzanine Certificates, the Class B Certificates, and the Class CE Certificates for such Distribution Date;

(xxiv)    the amount of any deposit to the Reserve Fund contemplated by Section 3.24(b);

 

 

(xxv)     the balance of the Reserve Fund prior to the deposit or withdrawal of any amounts on such Distribution Date;

(xxvi)    the amount of any deposit to the Reserve Fund pursuant to Section 5.01(c)(8)(vi);

(xxvii)   the balance of the Reserve Fund after all deposits and withdrawals on such Distribution Date;

(xxviii)  the Loss Severity Percentage with respect to each Mortgage Loan; 

	
            (xxix)
 	
            the Aggregate Loss Severity Percentage; and
 

(xxx)     amounts payable by or to the Supplemental Trust in respect of the Swap Agreement.

The Securities Administrator will make such statement (and, at its option, any additional files containing the same information in an alternative format) available each month to the Certificateholders and the Rating Agencies via the Securities Administrator’s internet website. The Securities Administrator’s internet website shall initially be located at http:\\www.ctslink.com and assistance in using the website can be obtained by calling the Securities Administrator’s customer service desk at 1-301-815-6600. Parties that are unable to use the above distribution options are entitled to have a paper copy mailed to them via first class mail by calling the customer service desk and indicating such. The Securities Administrator shall have the right to change the way such statements are distributed in order to make such distribution more convenient and/or more accessible to the
above parties and the Securities Administrator shall provide timely and adequate notification to all above parties regarding any such changes.

In the case of information furnished pursuant to subclauses (i) and (ii) above, the amounts shall be expressed as a dollar amount per Single Certificate of the relevant Class.

Within a reasonable period of time after the end of each calendar year, the Securities Administrator shall furnish upon request to each Person who at any time during the calendar year was a Holder of a Regular Certificate a statement containing the information set forth in subclauses (i) through (iii) above, aggregated for such calendar year or applicable portion thereof during which such person was a Certificateholder. Such obligation of the Securities Administrator shall be deemed to have been satisfied to the extent that substantially comparable information shall be provided by the Securities Administrator pursuant to any requirements of the Code as from time to time are in force.

Within a reasonable period of time after the end of each calendar year, the Securities Administrator shall furnish upon request to each Person who at any time during the calendar year was a Holder of a Residual Certificate a statement setting forth the amount, if any, actually distributed with respect to the Residual Certificates, as appropriate, aggregated for such calendar year or applicable portion thereof during which such Person was a Certificateholder.

 

 

The Securities Administrator shall, upon request, furnish to each Certificateholder during the term of this Agreement, such periodic, special, or other reports or information, whether or not provided for herein, as shall be reasonable with respect to the Certificateholder, as applicable, or otherwise with respect to the purposes of this Agreement, all such reports or information to be provided at the expense of the Certificateholder, in accordance with such reasonable and explicit instructions and directions as the Certificateholder may provide.

On each Distribution Date the Securities Administrator shall provide Bloomberg Financial Markets, L.P. (“Bloomberg”) CUSIP level factors for each Class of Certificates as of such Distribution Date, using a format and media mutually acceptable to the Securities Administrator and Bloomberg.

	
            SECTION 5.03.
 	
            Servicer Reports; P&I Advances.
 

(a)        On the 10th calendar day of each month, or if the 10th day is not a Business Day, the Business Day immediately preceding such 10th day, the Servicer shall deliver to the Master Servicer and the Securities Administrator by telecopy or electronic mail (or by such other means as the Servicer, the Master Servicer and the Securities Administrator may agree from time to time) a Servicer Report with respect to the Mortgage Loans and the related Distribution Date, in a form mutually acceptable to the Servicer, the Master Servicer and the Securities Administrator. On the same date, the Servicer shall electronically transmit to the Master Servicer and the Securities Administrator, a data file
containing the information set forth in such Servicer Report with respect to the related Distribution Date. Such Servicer Report shall include (i) the amount of P&I Advances to be made by the Servicer in respect of the related Distribution Date, the aggregate amount of P&I Advances outstanding after giving effect to such P&I Advances, and the aggregate amount of Nonrecoverable P&I Advances in respect of such Distribution Date and (ii) such other information with respect to the Mortgage Loans as the Securities Administrator may reasonably require (and as mutually agreed upon by the Master Servicer and the Servicer) so as to enable the Master Servicer to master service the Mortgage Loans and oversee servicing by the Servicer and for the Securities Administrator to perform the calculations necessary to make the distributions contemplated by Section 5.01 and to prepare the statements to Certificateholders contemplated by Section 5.02. Neither the Master Servicer nor
Securities Administrator shall be responsible to recompute, recalculate or verify any information provided to it by the Servicer.

(b)        The amount of P&I Advances to be made by the Servicer on any Distribution Date shall equal, subject to Section 5.03(d), (i) the aggregate amount of Monthly Payments (net of the related Servicing Fees), due during the related Due Period in respect of the Mortgage Loans serviced by the Servicer which Monthly Payments were delinquent as of the close of business on the related Determination Date and (ii) with respect to each REO Property, which was acquired during or prior to the related Prepayment Period and as to which an REO Disposition did not occur during the related Prepayment Period, an amount equal to the excess, if any, of the REO Imputed Interest on such REO Property for the most recently ended calendar month, over the net income from such REO Property deposited in the Collection Account pursuant to Section 3.21 of this Agreement
or for distribution on such Distribution Date; provided, however, the Servicer shall not be required to make P&I Advances with respect to Relief Act Interest Shortfalls, or with respect to Prepayment Interest Shortfalls in excess of its 

 

obligations under Section 3.22.  The Servicer shall not make any advances with respect to the principal portion of the Monthly Payments that would have been due on the related Due Date with respect to REO Properties.  Furthermore, to the extent a Balloon  Loan is delinquent and the Balloon Payment is due, the Servicer will only be required to advance the assumed scheduled Monthly Payment of such Mortgage Loan and will not be required to advance such Balloon Payment. 

By 3:00 p.m. New York time on the Servicer Remittance Date, the Servicer shall remit in immediately available funds to the Securities Administrator for deposit in the Distribution Account an amount equal to the aggregate amount of P&I Advances, if any, to be made in respect of the Mortgage Loans for the related Distribution Date either (i) from its own funds or (ii) from the Collection Account, to the extent of any Amounts Held For Future Distribution on deposit therein (in which case it will cause to be made an appropriate entry in the records of the Collection Account that Amounts Held For Future Distribution have been, as permitted by this Section 5.03, used by the Servicer in discharge of any such P&I Advance) or (iii) in the form of any combination of (i) and (ii) aggregating the total amount of P&I Advances to be made by the Servicer with respect to the Mortgage Loans. In
addition, the Servicer shall have the right to reimburse itself for any outstanding P&I Advance made from its own funds from Amounts Held for Future Distribution. Any Amounts Held For Future Distribution used by the Servicer to make P&I Advances or to reimburse itself for outstanding P&I Advances shall be appropriately reflected in the Servicer’s records and replaced by the Servicer by deposit in the Collection Account no later than the close of business on the Servicer Remittance Date immediately following the Due Period or Prepayment Period for which such amounts relate. The Securities Administrator will notify the Servicer and the Master Servicer by the close of business on the Business Day prior to the Distribution Date in the event that the amount remitted by the Servicer to the Securities Administrator on such date is less than the P&I Advances required to be made by the Servicer for the related Distribution Date.

(c)        The obligation of the Servicer to make such P&I Advances is mandatory, notwithstanding any other provision of this Agreement but subject to (c) below, and, with respect to any related Mortgage Loan or REO Property, shall continue until a Final Recovery Determination in connection therewith or the removal thereof from the Trust Fund pursuant to any applicable provision of this Agreement, except as otherwise provided in this Section.

(d)        Notwithstanding anything herein to the contrary, no P&I Advance or Servicing Advance shall be required to be made hereunder by the Servicer if such P&I Advance or Servicing Advance would, if made, constitute a Nonrecoverable P&I Advance or Nonrecoverable Servicing Advance, respectively. The determination by the Servicer that it has made a Nonrecoverable P&I Advance or a Nonrecoverable Servicing Advance or that any proposed P&I Advance or Servicing Advance, if made, would constitute a Nonrecoverable P&I Advance or Nonrecoverable Servicing Advance, respectively, shall be evidenced by a certification of a Servicing Officer delivered to the Master Servicer.

(e)        Subject to and in accordance with the provisions of Article VIII, in the event the Servicer fails to make any required P&I Advance, then the Master Servicer (in its capacity as successor servicer) or any other successor servicer shall be required to make such 

 

P&I Advance on the Distribution Date on which the Servicer was required to make such Advance, subject to its determination of recoverability.

	
            SECTION 5.04.
 	
            Allocation of Realized Losses.
 

(a)        Prior to the Determination Date, the Servicer shall determine as to each Mortgage Loan serviced by the Servicer or and any related REO Property and include in the monthly remittance report provided to the Master Servicer and the Securities Administrator (substantially in the form of Schedule 4 hereto) such information as is reasonably available to the Servicer as the Master Servicer or the Securities Administrator may reasonably require so as to enable the Master Servicer to master service the Mortgage Loans and oversee the servicing by the Servicer and the Securities Administrator to fulfill its obligations hereunder with respect to securities and tax reporting, which shall include, but not be limited to: (i) the total amount of Realized Losses, if any, incurred in connection with any Final Recovery Determinations made during the related
Prepayment Period; and (ii) the respective portions of such Realized Losses allocable to interest and allocable to principal. Prior to each Determination Date, the Servicer shall also determine as to each Mortgage Loan: (i) the total amount of Realized Losses, if any, incurred in connection with any Deficient Valuations made during the related Prepayment Period; and (ii) the total amount of Realized Losses, if any, incurred in connection with Debt Service Reductions in respect of Monthly Payments due during the related Due Period.

(b)        All Realized Losses on the Mortgage Loans allocated to any REMIC I Regular Interest pursuant to Section 5.04(c) on the Mortgage Loans shall be allocated by the Securities Administrator on each Distribution Date as follows: first, to Net Monthly Excess Cashflow; second, to the Class CE Certificates and to Net Swap Payments received from the Swap Provider under the Swap Agreement for that purpose; third, to the Class B-5 Certificates until the Certificate Principal Balance of the Class B-5 Certificates has been reduced to zero, fourth, to the Class B-4 Certificates until the Certificate Principal Balance of the Class B-4 Certificates has been reduced to zero, fifth, to the Class B-3 Certificates, until the Certificate Principal Balance of the Class B-3 Certificates, has been reduced to zero, sixth, to the Class B-2 Certificates, until the Certificate Principal Balance of the Class B-2 Certificates has been reduced to zero; seventh, to the Class B-1 Certificates, until the Certificate Principal Balance of the Class B-1 Certificates has been reduced to zero; eighth, to the Class M-6 Certificates, until the Certificate Principal Balance of the Class M-6 Certificates has been reduced to zero; ninth, to the Class M-5 Certificates, until the Certificate Principal Balance of the Class M-5 Certificates has been reduced to zero; tenth, to the Class M-4 Certificates, until the Certificate Principal Balance of the
Class M-4 Certificates has been reduced to zero; eleventh, to the Class M-3 Certificates, until the Certificate Principal Balance of the Class M-3 Certificates has been reduced to zero; twelfth, to the Class M-2 Certificates, until the Certificate Principal Balance of the Class M-2 Certificates has been reduced to zero; and thirteenth, to the Class M-1 Certificates, until the Certificate Principal Balance of the Class M-1 Certificates has been reduced to zero.  All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant
Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date.

 

 

Any allocation of Realized Losses to a Mezzanine Certificate or Class B Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class CE Certificate shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 5.01(c)(8)(viii). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or Class P Certificates.

As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the, Certificates of such Class in proportion to the Percentage Interests evidenced thereby.

In addition, in the event that the Servicer receives any Subsequent Recoveries with respect to a Mortgage Loan serviced by it, the Servicer shall deposit such funds into the Collection Account pursuant to Section 3.08.  If, after taking into account such Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount of such Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Subordinate Certificates with the highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to that Class of Subordinate Certificates pursuant to this Section 5.04 and not previously reimbursed to such Class of Subordinate Certificates with Net Monthly Excess Cashflow pursuant to Section 5.01(c)(8). The amount of any remaining Subsequent Recoveries will be applied to
sequentially increase the Certificate Principal Balance of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses previously allocated to such Class of Subordinate Certificates pursuant to this Section 5.04 and not previously reimbursed to such Class of Subordinate Certificates with Net Monthly Excess Cashflow pursuant to Section 5.01(c)(8)(iii). Holders of such Certificates will not be entitled to any payment in respect of current interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Certificate Principal Balance of each Subordinate Certificate of such Class in accordance with its respective Percentage Interest.

(c)        (i)         All Realized Losses on the Group IA Mortgage Loans shall be allocated on each Distribution Date first, to REMIC I Regular Interest A-I until the Uncertificated Balance of such REMIC I Regular Interest has been reduced to zero and second, to REMIC I Regular Interest I-1-A through REMIC I Regular Interest I-42-B, starting with the lowest numerical denomination until such REMIC I Regular Interest has been reduced to zero, provided that, for REMIC I Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests. All Realized Losses on the Group IB Mortgage Loans shall be allocated on each Distribution Date first, to REMIC I Regular Interest A-II until the
Uncertificated Balance of such REMIC I Regular Interest has been reduced to zero and second, to REMIC I Regular Interest II-1-A through REMIC I Regular Interest II-42-B, starting with the lowest numerical denomination until such REMIC I Regular Interest has been reduced to zero, provided that, for REMIC I Regular 

 

Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests.  All Realized Losses on the Group II Mortgage Loans shall be allocated on each Distribution Date first, to REMIC I Regular Interest A-III until the Uncertificated Balance of such REMIC I Regular Interest has been reduced to zero and second, to REMIC I Regular Interest III-1-A through REMIC I Regular Interest III-42-B, starting with the lowest numerical denomination until such REMIC I Regular Interest has been reduced to zero, provided that, for REMIC I Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests. 

(ii)         The REMIC II Marker Allocation Percentage of all Realized Losses on the Mortgage Loans shall be allocated by the Trustee, based solely on the instructions of the Securities Administrator, on each Distribution Date to the following REMIC II Regular Interests in the specified percentages, as follows: first, to Uncertificated Interest payable to the REMIC II Regular Interest AA and REMIC II Regular Interest ZZ up to an aggregate amount equal to the REMIC II Interest Loss Allocation Amount, 98.00% and 2.00%, respectively; second, to the Uncertificated Balances of the REMIC II Regular Interest AA and REMIC II Regular Interest ZZ up to an aggregate amount equal to the REMIC II Principal Loss Allocation Amount, 98.00% and 2.00%, respectively; third, to the Uncertificated Balances of REMIC II Regular Interest AA, REMIC II Regular Interest
B-5 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Balance of REMIC II Regular Interest B-5 has been reduced to zero; fourth, to the Uncertificated Balances of REMIC II Regular Interest AA, REMIC II Regular Interest B-4 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Balance of REMIC II Regular Interest B-4 has been reduced to zero; fifth, to the Uncertificated Balances of REMIC II Regular Interest AA, REMIC II Regular Interest B-3 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Balance of REMIC II Regular Interest B-3 has been reduced to zero; sixth, to the Uncertificated Balances of REMIC II Regular Interest AA, REMIC II Regular Interest B-2 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Balance of REMIC II Regular Interest B-1 has been reduced to zero; seventh, to the Uncertificated
Balances of REMIC II Regular Interest AA, REMIC II Regular Interest B-1 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Balance of REMIC II Regular Interest B-1 has been reduced to zero; eighth, to the Uncertificated Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-6 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Balance of REMIC II Regular Interest M-6 has been reduced to zero; ninth, to the Uncertificated Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-5 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Balance of REMIC II Regular Interest M-5 has been reduced to zero; tenth, to the Uncertificated Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-4 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Balance of REMIC II Regular
Interest M-4 has been reduced to zero; eleventh, to the Uncertificated Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-3 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Balance of REMIC II Regular Interest M-3 has been reduced to zero; twelfth, to the Uncertificated Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-2 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Balance of REMIC II Regular Interest M-2 has been 

 

reduced to zero; and thirteenth, to the Uncertificated Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-1 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Balance of REMIC II Regular Interest M-1 has been reduced to zero.

(iii)        The REMIC II Sub WAC Allocation Percentage of all Realized Losses shall be applied after all distributions have been made on each Distribution Date first, so as to keep the Uncertificated Balance of each REMIC II Regular Interest ending with the designation “GRP” equal to 0.01% of the aggregate Stated Principal Balance of the Mortgage Loans in the related loan group; second, to each REMIC II Regular Interest ending with the designation “SUB,” so that the Uncertificated Balance of each such REMIC II Regular Interest is equal to 0.01% of the excess of (x) the aggregate Stated Principal Balance of the Mortgage Loans in the related loan group over (y) the current Certificate Principal Balance of the Class A Certificate in the related loan group (except that if any such excess is a larger number than in the preceding
distribution period, the least amount of Realized Losses shall be applied to such REMIC II Regular Interests such that the REMIC II Subordinated Balance Ratio is maintained); and third, any remaining Realized Losses shall be allocated to REMIC II Regular Interest XX.

	
            SECTION 5.05.
 	
            Compliance with Withholding Requirements.
 

Notwithstanding any other provision of this Agreement, the Trustee and the Securities Administrator shall comply with all federal withholding requirements respecting payments to Certificateholders of interest or original issue discount that the Trustee reasonably believes are applicable under the Code. The consent of Certificateholders shall not be required for such withholding. In the event the Securities Administrator does withhold any amount from interest or original issue discount payments or advances thereof to any Certificateholder pursuant to federal withholding requirements, the Securities Administrator shall indicate the amount withheld to such Certificateholders.

	
            SECTION 5.06.
 	
            Reports Filed with Securities and Exchange Commission.
 

The Depositor shall prepare or cause to be prepared the initial current report on Form 8-K.  Within fifteen (15) days after each Distribution Date, the Securities Administrator shall, in accordance with industry standards, file with the Commission via the Electronic Data Gathering and Retrieval System (“EDGAR”), a Form 8-K (or other comparable Form containing the same or comparable information or other information mutually agreed upon) with a copy of the statement to be furnished to the Certificateholders for such Distribution Date as an exhibit thereto.  Prior to January 30, 2006, the Securities Administrator shall, in accordance with industry standards, file a Form 15 Suspension Notice with respect to the Trust Fund, if applicable. Prior to (i) March 20, 2006 and (ii) unless and until a Form 15 Suspension Notice shall have been filed, prior to March 20th of each year
thereafter, the Master Servicer shall provide the Securities Administrator with a Master Servicer Certification, together with a copy of the annual independent accountant’s servicing report and annual statement of compliance of the Servicer to be delivered pursuant to this Agreement and, if applicable, the annual independent accountant’s servicing report and annual statement of compliance to be delivered by the Master Servicer pursuant to Sections 4.15 and 4.16.  Prior to (i) March 31, 2006 and (ii) unless and until a Form 15 Suspension Notice shall have been filed, March 31 of each year thereafter, the 

 

Securities Administrator shall file a Form 10-K, in substance conforming to industry standards, with respect to the Trust. Such Form 10-K shall include the Master Servicer Certification and other documentation provided by the Master Servicer pursuant to the second preceding sentence. The Depositor hereby grants to the Securities Administrator a limited power of attorney to execute and file each such document on behalf of the Depositor. Such power of attorney shall continue until either the earlier of (i) receipt by the Securities Administrator from the Depositor of written termination of such power of attorney and (ii) the termination of the Trust Fund. The Depositor agrees to promptly furnish to the Securities Administrator, from time to time upon request, such further information, reports and financial statements within its control related to this Agreement, the Mortgage Loans as the Securities
Administrator reasonably deems appropriate to prepare and file all necessary reports with the Commission. The Securities Administrator shall have no responsibility to file any items other than those specified in this Section 5.06; provided, however, the Securities Administrator will cooperate with the Depositor in connection with any additional filings with respect to the Trust Fund as the Depositor deems necessary under the Exchange Act. Fees and expenses incurred by the Securities Administrator in connection with this Section 5.06 shall not be reimbursable from the Trust Fund.

	
            SECTION 5.07.
 	
            Supplemental Interest Trust.
 

(a)        On the Closing Date, the Securities Administrator shall establish and maintain in the name of the Trustee a separate account for the benefit of the holders of the Offered Certificates and Class B Certificates (the “Supplemental Interest Trust”).  The Supplemental Interest Trust shall be an Eligible Account, and funds on deposit therein shall be held separate and apart from, and shall not be commingled with, any other moneys, including, without limitation, other moneys of the Trustee or of the Securities Administrator held pursuant to this Agreement.  

(b)        On each Distribution Date, the Securities Administrator shall withdraw all amounts which were deposited in the Supplemental Interest Trust as specifically described in this Agreement and the Swap Agreement and distribute such amounts in accordance with the provisions of Section 5.01(c) of this Agreement.

(c)        The Supplemental Interest Trust constitutes an “outside reserve fund” within the meaning of Treasury Regulation § 1.860G-2(h) and is not an asset of any REMIC.  The Holders of the Class CE Certificates shall be the beneficial owner of the Supplemental Interest Trust, subject to the power of the Securities Administrator to transfer amounts under this Agreement.  The Securities Administrator shall keep records that accurately reflect the funds on deposit in the Supplemental Interest Trust.  The Securities Administrator shall, at the written direction of the majority of the Class CE Certificateholders, invest amounts on deposit in the Supplemental Interest Trust in Permitted Investments. In the absence of written direction to the Securities Administrator from the majority of the Class CE Certificateholders, all funds in the
Supplemental Interest Trust shall remain uninvested. On each Distribution Date, the Securities Administrator shall distribute, not in respect of any REMIC, any interest earned on the Supplemental Interest Trust to the Holders of the Class CE Certificates.

(d)        For federal income tax purposes, amounts paid to the Supplemental Interest Trust on each Distribution Date pursuant to Section 5.01(c)(2), (3), (4), (6) and (7) and 

 

Section 5.01(c)(8)(vii) shall first be deemed paid to the Supplemental Interest Trust in respect of the Class IO Interest to the extent of the amount distributable on such Class IO Interest on such Distribution Date, and any remaining amount shall be deemed paid to the Supplemental Interest Trust in respect of a Class IO Distribution Amount.  For federal income tax purposes, the Supplemental Interest Trust will be a disregarded entity.

(e)        The Securities Administrator shall treat the Holders of Certificates (other than the Class P, Class CE and Residual Certificates) as having entered into a notional principal contract with respect to the Holders of the Class CE Certificates.  Pursuant to each such notional principal contract, all Holders of Certificates (other than the Class P, Class CE and Residual Certificates) shall be treated as having agreed to pay, on each Distribution Date, to the Holder of the Class CE Certificates an aggregate amount equal to the excess, if any, of (i) the amount payable on such Distribution Date on the Regular Interest ownership of which is represented by such Class of Certificates over (ii) the amount payable on such Class of Certificates on such Distribution Date (such excess, a “Class IO Distribution Amount”).  A Class IO Distribution
Amount payable from interest collections shall be allocated pro rata among such Certificates based on the amount of interest otherwise payable to such Certificates, and a Class IO Distribution Amount payable from principal collections shall be allocated to the most subordinate Class of such Certificates with an outstanding principal balance to the extent of such balance.  In addition, pursuant to such notional principal contract, the Holder of the Class CE Certificates shall be treated as having agreed to pay Net WAC Rate Carryover Amounts to the Holders of the Certificates (other than the Class CE, Class P and Residual Certificates) in accordance with the terms of this Agreement.  Any payments to such Certificates from amounts deemed received in respect of this notional principal contract shall not be payments with respect to a Regular Interest in a REMIC within the meaning of Code Section 860G(a)(1).  However, any payment from the Certificates (other than the Class CE, Class P and
Residual Certificates) of a Class IO Distribution Amount shall be treated for tax purposes as having been received by the Holders of such Certificates in respect of the Regular Interest ownership of which is represented by such Certificates, and as having been paid by such Holders to the Supplemental Interest Trust pursuant to the notional principal contract.  Thus, each Certificate (other than the Class P Certificates and Residual Certificates) shall be treated as representing not only ownership of a Regular Interest in REMIC III, REMIC VII, REMIC VIII, REMIC IX, REMIC X, and REMIC XI, as applicable, but also ownership of an interest in, and obligations with respect to, a notional principal contract.

(f)         For federal tax return and information reporting, the right of the holders of the Offered Certificates and Class B Certificates to receive payments from the Supplemental Interest Trust shall be assigned a value of $35,000.

(g)        In the event that the Swap Agreement is terminated prior to the Distribution Date in April 2009, the Seller shall use reasonable efforts to appoint a successor swap provider using any Swap Termination Payments paid by the Swap Provider. If the Seller is unable to locate a qualified successor swap provider, any such Swap Termination Payments will be remitted to the Securities Administrator for payment to the holders of the Offered Certificates and Class B Certificates in accordance with Section 5.01(c).

 

 

SECTION 5.08.     Tax Treatment of Swap Payments and Swap Termination Payments.

For federal income tax purposes, each holder of an Offered Certificate or a Class B Certificate is deemed to own an undivided beneficial ownership interest in a REMIC regular interest and the right to receive payments from either the Reserve Fund or the Supplemental Interest Trust in respect of any Net WAC Rate Carryover Amounts or the obligation to make payments to the Supplemental Interest Trust. For federal income tax purposes, the Securities Administrator will account for payments to each Offered Certificate and Class B Certificate as follows: each Offered Certificate and Class B Certificate will be treated as receiving their entire payment from REMIC III, REMIC VII, REMIC VIII, REMIC IX, REMIC X, or REMIC XI, as applicable, (regardless of any Swap Termination Payment or obligation under the Swap Agreement) and subsequently paying their portion of any Swap Termination Payment in
respect of each such Class’s obligation under the Swap Agreement. In the event that any such Class is resecuritized in a REMIC, the obligation under the Swap Agreement to pay any such Swap Termination Payment (or any shortfall in Net Swap Payment), will be made by one or more of the REMIC Regular Interests issued by the resecuritization REMIC subsequent to such REMIC Regular Interest receiving its full payment from any such Offered Certificate and Class B Certificate. Resecuritization of any Offered Certificate and Class B Certificate in a REMIC will be permissible only if the Securities Administrator hereunder is the trustee/securities administrator in such resecuritization.

The REMIC Regular Interest corresponding to an Offered Certificate and Class B Certificate will be entitled to receive interest and principal payments at the times and in the amounts equal to those made on the certificate to which it corresponds, except that (i) the maximum interest rate of that REMIC regular interest will equal the Net WAC Pass-Through Rate computed for this purpose by limiting the Swap Notional Amount of the Swap Agreement to the aggregate Stated Principal Balance of the Mortgage Loans and (ii) any Swap Termination Payment will be treated as being payable solely from amounts otherwise payable to the Class CE Certificates. As a result of the foregoing, the amount of distributions and taxable income on the REMIC Regular Interest corresponding to an Offered Certificate and Class B Certificate may exceed the actual amount of distributions on the Offered Certificate and Class
B Certificate.

 

 

ARTICLE VI

 

THE CERTIFICATES

	
            SECTION 6.01.
 	
            The Certificates.
 

(a)        The Certificates in the aggregate will represent the entire beneficial ownership interest in the Mortgage Loans and all other assets included in REMIC I.

The Certificates will be substantially in the forms annexed hereto as Exhibits A-1 through A-6. The Certificates of each Class will be issuable in registered form only, in denominations of authorized Percentage Interests as described in the definition thereof. Each Certificate will share ratably in all rights of the related Class.

Upon original issue, the Certificates shall be executed and authenticated by the Securities Administrator and delivered by the Trustee to and upon the written order of the Depositor. The Certificates shall be executed by manual or facsimile signature on behalf of the Trust by the Securities Administrator by an authorized signatory. Certificates bearing the manual or facsimile signatures of individuals who were at any time the proper officers of the Securities Administrator shall bind the Trust, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery of such Certificates or did not hold such offices at the date of such Certificates. No Certificate shall be entitled to any benefit under this Agreement or be valid for any purpose, unless there appears on such Certificate a certificate of authentication substantially in the
form provided herein executed by the Securities Administrator by manual signature, and such certificate of authentication shall be conclusive evidence, and the only evidence, that such Certificate has been duly authenticated and delivered hereunder. All Certificates shall be dated the date of their authentication.

(b)        The Class A Certificates and the Mezzanine Certificates shall initially be issued as one or more Certificates held by the Book-Entry Custodian or, if appointed to hold such Certificates as provided below, the Depository and registered in the name of the Depository or its nominee and, except as provided below, registration of such Certificates may not be transferred by the Securities Administrator except to another Depository that agrees to hold such Certificates for the respective Certificate Owners with Ownership Interests therein. The Certificate Owners shall hold their respective Ownership Interests in and to such Certificates through the book-entry facilities of the Depository and, except as provided below, shall not be entitled to definitive, fully registered Certificates (“Definitive Certificates”) in respect of such
Ownership Interests. All transfers by Certificate Owners of their respective Ownership Interests in the Book-Entry Certificates shall be made in accordance with the procedures established by the Depository Participant or brokerage firm representing such Certificate Owner. Each Depository Participant shall only transfer the Ownership Interests in the Book-Entry Certificates of Certificate Owners it represents or of brokerage firms for which it acts as agent in accordance with the Depository’s normal procedures. The Securities Administrator is hereby initially appointed as the Book-Entry Custodian and hereby agrees to act as such in accordance herewith and in accordance with the agreement that it has with the Depository authorizing it to act as such. The Book-Entry Custodian may, and, if it is no longer qualified to act as such, the Book-Entry Custodian shall, appoint, by a written instrument delivered to the Depositor, the Servicer and, if 

 

the Trustee is not the Book-Entry Custodian, the Trustee, any other transfer agent (including the Depository or any successor Depository) to act as Book-Entry Custodian under such conditions as the predecessor Book-Entry Custodian and the Depository or any successor Depository may prescribe, provided that the predecessor Book-Entry Custodian shall not be relieved of any of its duties or responsibilities by reason of any such appointment of other than the Depository. If the Securities Administrator resigns or is removed in accordance with the terms hereof, the successor Securities Administrator or, if it so elects, the Depository shall immediately succeed to its predecessor’s duties as Book-Entry Custodian. The Depositor shall have the right to inspect, and to obtain copies of, any Certificates held as Book-Entry Certificates by the Book-Entry Custodian.

(c)        The Class B, Class CE and Class P Certificates initially offered and sold in offshore transactions in reliance on Regulation S shall be issued in the form of a temporary global certificate in definitive, fully registered form (each, a “Regulation S Temporary Global Certificate”), which shall be deposited with the Securities Administrator or an agent of the Securities Administrator as custodian for the Depository and registered in the name of Cede & Co. as nominee of the Depository for the account of designated agents holding on behalf of Euroclear or Clearstream.  Beneficial interests in each Regulation S Temporary Global Certificate may be held only through Euroclear or Clearstream; provided, however, that such interests may be exchanged for interests in a Definitive Certificate in accordance with the requirements described
in Section 6.02.  After the expiration of the Release Date, a beneficial interest in a Regulation S Temporary Global Certificate may be exchanged for a beneficial interest in the related permanent global certificate of the same Class (each, a “Regulation S Permanent Global Certificate”), in accordance with the procedures set forth in Section 6.02.  Each Regulation S Permanent Global Certificate shall be deposited with the Securities Administrator or an agent of the Securities Administrator as custodian for the Depository and registered in the name of Cede & Co. as nominee of the Depository.

The Class B Certificates offered and sold to Qualified Institutional Buyers (“QIBs”) in reliance on Rule 144A under the Securities Act (“Rule 144A”) or institutional investors that are accredited investors within the meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act (“Institutional Accredited Investors”) will be issued in the form of Book-Entry Certificates.

(d)        The Class CE Certificates and Class P Certificates offered and sold to QIBs in reliance on Rule 144A under the Securities Act (“Rule 144A”) will be issued in the form of Definitive Certificates.

(e)        The Trustee, the Servicer, the Securities Administrator, the Master Servicer and the Depositor may for all purposes (including the making of payments due on the Book-Entry Certificates and Global Certificates) deal with the Depository as the authorized representative of the Certificate Owners with respect to the Book-Entry Certificates and Global Certificates for the purposes of exercising the rights of Certificateholders hereunder.  The rights of Certificate Owners with respect to the Book-Entry Certificates and Global Certificates shall be limited to those established by law and agreements between such Certificate Owners and the Depository Participants and brokerage firms representing such Certificate Owners.  Multiple requests and directions from, and votes of, the Depository as Holder of the Book-Entry 

 

Certificates and Global Certificates with respect to any particular matter shall not be deemed inconsistent if they are made with respect to different Certificate Owners. The Securities Administrator may establish a reasonable record date in connection with solicitations of consents from or voting by Certificateholders and shall give notice to the Depository of such record date.

If (i)(A) the Depositor advises the Securities Administrator in writing that the Depository is no longer willing or able to properly discharge its responsibilities as Depository, and (B) the Depositor is unable to locate a qualified successor, (ii) the Depositor at its option advises the Securities Administrator in writing that it elects to terminate the book-entry system through the Depository or (iii) after the occurrence of a Servicer Event of Default, Certificate Owners representing in the aggregate not less than 51% of the Ownership Interests of the Book-Entry Certificates advise the Securities Administrator through the Depository, in writing, that the continuation of a book-entry system through the Depository is no longer in the best interests of the Certificate Owners, the Securities Administrator shall notify all Certificate Owners, through the Depository, of the occurrence of any
such event and of the availability of Definitive Certificates to Certificate Owners requesting the same. With respect to a Global Certificate, the related Certificate Owner (other than a Holder of a Regulation S Temporary Global Certificate) may request that its interest in a Global Certificate be exchanged for a Definitive Certificate.  Upon surrender to the Securities Administrator of the Book-Entry Certificates by the Book-Entry Custodian or the Depository, as applicable, or the Global Certificates by the Depository accompanied by registration instructions from the Depository for registration of transfer, the Securities Administrator shall cause the Definitive Certificates to be issued.  Such Definitive Certificates will be issued in minimum denominations of $10,000 except that any beneficial ownership that was represented by a Book-Entry Certificate, or a Global Certificate, as applicable in an amount less than $10,000 immediately prior to the issuance of a Definitive Certificate
shall be issued in a minimum denomination equal to the amount represented by such Book-Entry Certificate or a Global Certificate, as applicable.  None of the Depositor, the Servicer, the Master Servicer, the Securities Administrator or the Trustee shall be liable for any delay in the delivery of such instructions and may conclusively rely on, and shall be protected in relying on, such instructions. Upon the issuance of Definitive Certificates all references herein to obligations imposed upon or to be performed by the Depository shall be deemed to be imposed upon and performed by the Securities Administrator, to the extent applicable with respect to such Definitive Certificates, and the Securities Administrator shall recognize the Holders of the Definitive Certificates as Certificateholders hereunder.

	
            SECTION 6.02.
 	
            Registration of Transfer and Exchange of Certificates.
 

(a)        The Securities Administrator shall cause to be kept at one of the offices or agencies to be appointed by the Securities Administrator in accordance with the provisions of Section 9.11, a Certificate Register for the Certificates in which, subject to such reasonable regulations as it may prescribe, the Securities Administrator shall provide for the registration of Certificates and of transfers and exchanges of Certificates as herein provided.

(b)        No transfer of any Class B Certificate, Class CE Certificate, Class P Certificate or Residual Certificate shall be made unless that transfer is made pursuant to an effective registration statement under the Securities Act, and effective registration or qualification under applicable state securities laws, or is made in a transaction that does not 

 

require such registration or qualification. In the event that such a transfer of a Class B Certificate, Class CE Certificate, Class P Certificate or Residual Certificate is to be made without registration or qualification (other than in connection with the initial transfer of any such Certificate by the Depositor), the Securities Administrator shall require receipt of: (i) if such transfer is purportedly being made in reliance upon Rule 144A under the Securities Act, written certifications from the Certificateholder desiring to effect the transfer and from such Certificateholder’s prospective transferee, substantially in the form attached hereto as Exhibit B-1; (ii) if such transfer is purportedly being made in reliance upon Rule 501(a) under the Securities Act, written certifications from the Certificateholder desiring to effect the transfer and from such Certificateholder’s prospective
transferee, substantially in the form attached hereto as Exhibit B-2; (iii) with respect to any Class B, Class CE or Class P Certificate, if such transfer is purportedly being made in reliance on Regulation S, a written certification from the prospective transferee, substantially in the form attached hereto as Exhibit B-1 and (iv) in all other cases, an Opinion of Counsel satisfactory to the Securities Administrator that such transfer may be made without such registration or qualification (which Opinion of Counsel shall not be an expense of the Trust Fund or of the Depositor, the Trustee, the Master Servicer, the Securities Administrator or the Servicer), together with copies of the written certification(s) of the Certificateholder desiring to effect the transfer and/or such Certificateholder’s prospective transferee upon which such Opinion of Counsel is based, if any. Neither of the Depositor nor the Securities Administrator is obligated to register or qualify any such
Certificates under the Securities Act or any other securities laws or to take any action not otherwise required under this Agreement to permit the transfer of such Certificates without registration or qualification. Any Certificateholder desiring to effect the transfer of any such Certificate shall, and does hereby agree to, indemnify the Trustee, the Depositor, the Master Servicer, the Securities Administrator and the Servicer against any liability that may result if the transfer is not so exempt or is not made in accordance with such federal and state laws.

A holder of a beneficial interest in a Regulation S Temporary Global Certificate must provide Euroclear or Clearstream, as the case may be, with a certificate in the form of Annex A to Exhibit B-1 hereto certifying that the beneficial owner of the interest in such Global Certificate is not a U.S. Person (as defined in Regulation S), and Euroclear or Clearstream, as the case may be, must provide to the Trustee and Securities Administrator a certificate in the form of Exhibit B-1 hereto prior to (i) the payment of interest or principal with respect to such holder’s beneficial interest in the Regulation S Temporary Global Certificate and (ii) any exchange of such beneficial interest for a beneficial interest in a Regulation S Permanent Global Certificate.

(c)        No transfer of a Class CE Certificate, Class P Certificate or a Residual Certificate or any interest therein shall be made to any Plan subject to ERISA or Section 4975 of the Code, any Person acting, directly or indirectly, on behalf of any such Plan or any Person acquiring such Certificates with “Plan Assets” of a Plan within the meaning of the Department of Labor regulation promulgated at 29 C.F.R. § 2510.3-101 (“Plan Assets”) unless the Securities Administrator is provided with an Opinion of Counsel on which the Depositor, the Master Servicer, the Securities Administrator, the Trustee and the Servicer may rely, which establishes to the satisfaction of the Securities Administrator that the purchase of such Certificates is permissible under applicable law, will not constitute or result in any prohibited
transaction under ERISA or Section 4975 of the Code and will not subject the Depositor, the Servicer, the Trustee, the Master Servicer, the Securities Administrator or the Trust Fund to any obligation or liability 

 

(including obligations or liabilities under ERISA or Section 4975 of the Code) in addition to those undertaken in this Agreement, which Opinion of Counsel shall not be an expense of the Depositor, the Servicer, the Trustee, the Master Servicer, the Securities Administrator, the Trust Fund.  An Opinion of Counsel will not be required in connection with the initial transfer of any such Certificate by the Depositor to an affiliate of the Depositor (in which case, the Depositor or any affiliate thereof shall have deemed to have represented that such affiliate is not a Plan or a Person investing Plan Assets) and the Securities Administrator shall be entitled to conclusively rely upon a representation (which, upon the request of the Securities Administrator, shall be a written representation) from the Depositor of the status of such transferee as an affiliate of the Depositor.

For so long as the Supplemental Interest Trust is in existence, each beneficial owner of a Offered Certificate or Class B Certificate or any interest therein, shall be deemed to have represented, by virtue of its acquisition or holding of the Offered Certificate or Class B Certificate, or interest therein, that either (i) it is not a Plan or (ii)(A) it is an accredited investor within the meaning of Prohibited Transaction Exemption 2002-41, as amended from time to time (the “Exemption”) and (B) the acquisition and holding of such Certificate and the separate right to receive payments from the Supplemental Interest Trust are eligible for the exemptive relief available under Prohibited Transaction Class Exemption (“PTCE”) 84-14 (for transactions by independent “qualified professional asset managers”), 91-38 (for transactions by bank collective investment funds),
90-1 (for transactions by insurance company pooled separate accounts), 95-60 (for transactions by insurance company general accounts) or 96-23 (for transactions effected by “in-house asset managers”).

Each Transferee of a Mezzanine Certificate or Class B Certificate or any interest therein that is acquired after the termination of the Supplemental Interest Trust shall certify or will be deemed to have represented by virtue of its purchase or holding of such Certificate (or interest therein) that either (a) such Transferee is not a Plan or purchasing such Certificate with Plan Assets, (b) it has acquired and is holding such Certificate in reliance on Prohibited Transaction Exemption (“PTE”) 94-84 or FAN 97-03E, as amended by PTE 97-34, 62 Fed. Reg. 39021 (July 21, 1997), PTE 2000-58, 65 Fed. Reg. 67765 (November 13, 2000) and PTE 2002-41, 67 Fed. Reg. 54487 (August 22, 2002) (the “Exemption”), and that it understands that there are certain conditions to the availability of the  Exemption including that such Certificate must be rated, at the time of purchase, not lower
than “BBB-” (or its equivalent) by a Rating Agency or (c) the following conditions are satisfied:  (i) such Transferee is an insurance company, (ii) the source of funds used to purchase or hold such Certificate (or interest therein) is an “insurance company general account” (as defined in PTCE 95-60, and (iii) the conditions set forth in Sections I and III of PTCE 95-60 have been satisfied.

If any Certificate or any interest therein is acquired or held in violation of the conditions described in this Section 6.02(c), the next preceding permitted beneficial owner will be treated as the beneficial owner of that Certificate, retroactive to the date of transfer to the purported beneficial owner. Any purported beneficial owner whose acquisition or holding of any certificate or interest therein was effected in violation of the conditions described in this Section 6.02(c) shall indemnify and hold harmless the Depositor, the Trustee, the Servicer, the Master Servicer, the Securities Administrator and the Trust Fund from and against any and all liabilities, claims, costs or expenses incurred by those parties as a result of that acquisition or holding.

 

 

(d)        (i) Each Person who has or who acquires any Ownership Interest in a Residual Certificate shall be deemed by the acceptance or acquisition of such Ownership Interest to have agreed to be bound by the following provisions and to have irrevocably authorized the Securities Administrator or its designee under clause (iii)(A) below to deliver payments to a Person other than such Person and to negotiate the terms of any mandatory sale under clause (iii)(B) below and to execute all instruments of Transfer and to do all other things necessary in connection with any such sale. The rights of each Person acquiring any Ownership Interest in a Residual Certificate are expressly subject to the following provisions:

(A)       Each Person holding or acquiring any Ownership Interest in a Residual Certificate shall be a Permitted Transferee and shall promptly notify the Securities Administrator of any change or impending change in its status as a Permitted Transferee.

(B)        In connection with any proposed Transfer of any Ownership Interest in a Residual Certificate, the Securities Administrator shall require delivery to it, and shall not register the Transfer of any Residual Certificate until its receipt of, an affidavit and agreement (a “Transfer Affidavit and Agreement,” in the form attached hereto as Exhibit B-3) from the proposed Transferee, in form and substance satisfactory to the Securities Administrator, representing and warranting, among other things, that such Transferee is a Permitted Transferee, that it is not acquiring its Ownership Interest in the Residual Certificate that is the subject of the proposed Transfer as a nominee, trustee or agent for any Person that is not a Permitted Transferee, that for so long as it retains its Ownership Interest in a Residual
Certificate, it will endeavor to remain a Permitted Transferee, and that it has reviewed the provisions of this Section 6.02(d) and agrees to be bound by them.

(C)       Notwithstanding the delivery of a Transfer Affidavit and Agreement by a proposed Transferee under clause (B) above, if an authorized officer of the Securities Administrator who is assigned to this transaction has actual knowledge that the proposed Transferee is not a Permitted Transferee, no Transfer of an Ownership Interest in a Residual Certificate to such proposed Transferee shall be effected.

(D)       Each Person holding or acquiring any Ownership Interest in a Residual Certificate shall agree (x) to require a Transfer Affidavit and Agreement from any other Person to whom such Person attempts to transfer its Ownership Interest in a Residual Certificate and (Y) not to transfer its Ownership Interest unless it provides a Transferor Affidavit (in the form attached hereto as Exhibit B-2) to the Securities Administrator stating that, among other things, it has no actual knowledge that such other Person is not a Permitted Transferee.

(E)        Each Person holding or acquiring an Ownership Interest in a Residual Certificate, by purchasing an Ownership Interest in such Certificate, agrees to give the Securities Administrator written notice that it is a “pass-through interest holder” within the meaning of temporary Treasury regulation Section 

 

1.67-3T(a)(2)(i)(A) immediately upon acquiring an Ownership Interest in a Residual Certificate, if it is, or is holding an Ownership Interest in a Residual Certificate on behalf of, a “pass-through interest holder.”

(ii)         The Securities Administrator will register the Transfer of any Residual Certificate only if it shall have received the Transfer Affidavit and Agreement and all of such other documents as shall have been reasonably required by the Securities Administrator as a condition to such registration. In addition, no Transfer of a Residual Certificate shall be made unless the Securities Administrator shall have received a representation letter from the Transferee of such Certificate to the effect that such Transferee is a Permitted Transferee.

(iii)        (A) If any purported Transferee shall become a Holder of a Residual Certificate in violation of the provisions of this Section 6.02(d), then the last preceding Permitted Transferee shall be restored, to the extent permitted by law, to all rights as holder thereof retroactive to the date of registration of such Transfer of such Residual Certificate. The Securities Administrator shall be under no liability to any Person for any registration of Transfer of a Residual Certificate that is in fact not permitted by this Section 6.02(d) or for making any payments due on such Certificate to the holder thereof or for taking any other action with respect to such holder under the provisions of this Agreement.

(B)        If any purported Transferee shall become a holder of a Residual Certificate in violation of the restrictions in this Section 6.02(d) and to the extent that the retroactive restoration of the rights of the holder of such Residual Certificate as described in clause (iii)(A) above shall be invalid, illegal or unenforceable, then the Securities Administrator shall have the right, without notice to the holder or any prior holder of such Residual Certificate, to sell such Residual Certificate to a purchaser selected by the Securities Administrator on such terms as the Securities Administrator may choose. Such purported Transferee shall promptly endorse and deliver each Residual Certificate in accordance with the instructions of the Securities Administrator. Such purchaser may be the Securities Administrator itself or any
Affiliate of the Securities Administrator. The proceeds of such sale, net of the commissions (which may include commissions payable to the Securities Administrator or its Affiliates), expenses and taxes due, if any, will be remitted by the Securities Administrator to such purported Transferee. The terms and conditions of any sale under this clause (iii)(B) shall be determined in the sole discretion of the Securities Administrator, and the Securities Administrator shall not be liable to any Person having an Ownership Interest in a Residual Certificate as a result of its exercise of such discretion.

(iv)        The Securities Administrator shall make available to the Internal Revenue Service and those Persons specified by the REMIC Provisions all information necessary to compute any tax imposed 

 

(A) as a result of the Transfer of an Ownership Interest in a Residual Certificate to any Person who is a Disqualified Organization, including the information described in Treasury regulations sections 1.860D-1(b)(5) and 1.860E-2(a)(5) with respect to the “excess inclusions” of such Residual Certificate and (B) as a result of any regulated investment company, real estate investment trust, common trust fund, partnership, trust, estate or organization described in Section 1381 of the Code that holds an Ownership Interest in a Residual Certificate having as among its record holders at any time any Person which is a Disqualified Organization. Reasonable compensation for providing such information may be charged or collected by the Securities Administrator.

(v)        The provisions of this Section 6.02(d) set forth prior to this subsection (v) may be modified, added to or eliminated, provided that there shall have been delivered to the Securities Administrator at the expense of the party seeking to modify, add to or eliminate any such provision the following:

(A)       written notification from each Rating Agency to the effect that the modification, addition to or elimination of such provisions will not cause such Rating Agency to downgrade its then-current ratings of any Class of Certificates; and

(B)        an Opinion of Counsel, in form and substance satisfactory to the Securities Administrator, to the effect that such modification of, addition to or elimination of such provisions will not cause any Trust REMIC to cease to qualify as a REMIC and will not cause any Trust REMIC, as the case may be, to be subject to an entity-level tax caused by the Transfer of any Residual Certificate to a Person that is not a Permitted Transferee or a Person other than the prospective transferee to be subject to a REMIC-tax caused by the Transfer of a Residual Certificate to a Person that is not a Permitted Transferee.

(e)        Subject to the preceding subsections, upon surrender for registration of transfer of any Certificate at any office or agency of the Securities Administrator maintained for such purpose pursuant to Section 9.11, the Securities Administrator shall execute, authenticate and deliver, in the name of the designated Transferee or Transferees, one or more new Certificates of the same Class of a like aggregate Percentage Interest.

(f)         At the option of the Holder thereof, any Certificate may be exchanged for other Certificates of the same Class with authorized denominations and a like aggregate Percentage Interest, upon surrender of such Certificate to be exchanged at any office or agency of the Securities Administrator maintained for such purpose pursuant to Section 9.11. Whenever any Certificates are so surrendered for exchange, the Securities Administrator shall execute, authenticate and deliver, the Certificates which the Certificateholder making the exchange is entitled to receive. Every Certificate presented or surrendered for transfer or exchange shall (if so required by the Securities Administrator) be duly endorsed by, or be accompanied by a written instrument of transfer in the form satisfactory to the Securities Administrator duly executed by, 

 

the Holder thereof or his attorney duly authorized in writing.  In addition, with respect to each Class R Certificate, the holder thereof may exchange, in the manner described above, such Class R Certificate for three separate certificates, each representing such holder's respective Percentage Interest in the Class R-I Interest, the Class R-II Interest and the Class R-III Interest, respectively, in each case that was evidenced by the Class R Certificate being exchanged.  Furthermore, with respect to each Class R-X Certificate, the holder thereof may exchange, in the manner described above, such Class R-X Certificate for three separate certificates, each representing such holder's respective Percentage Interest in the Class R-IV Interest, the Class R-V Interest and the Class R-VI Interest, respectively, in each case that was evidenced by the Class R-X Certificate being exchanged.

(g)        No service charge to the Certificateholders shall be made for any transfer or exchange of Certificates, but the Securities Administrator may require payment of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with any transfer or exchange of Certificates.

(h)        All Certificates surrendered for transfer and exchange shall be canceled and destroyed by the Securities Administrator in accordance with its customary procedures.

	
            SECTION 6.03.
 	
            Mutilated, Destroyed, Lost or Stolen Certificates.
 

If (i) any mutilated Certificate is surrendered to the Securities Administrator, or the Securities Administrator receives evidence to its satisfaction of the destruction, loss or theft of any Certificate and of the ownership thereof, and (ii) there is delivered to the Securities Administrator such security or indemnity as may be required by it to save it harmless, then, in the absence of actual knowledge by the Securities Administrator that such Certificate has been acquired by a protected purchaser, the Securities Administrator, shall execute, authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate of the same Class and of like denomination and Percentage Interest. Upon the issuance of any new Certificate under this Section, the Securities Administrator may require the payment of a sum sufficient to cover any tax
or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Securities Administrator) connected therewith. Any replacement Certificate issued pursuant to this Section shall constitute complete and indefeasible evidence of ownership in the applicable REMIC created hereunder, as if originally issued, whether or not the lost, stolen or destroyed Certificate shall be found at any time.

	
            SECTION 6.04.
 	
            Persons Deemed Owners.
 

The Depositor, the Servicer, the Trustee, the Master Servicer, the Securities Administrator and any agent of any of them may treat the Person in whose name any Certificate is registered as the owner of such Certificate for the purpose of receiving distributions pursuant to Section 5.01 and for all other purposes whatsoever, and none of the Depositor, the Servicer, the Trustee, the Master Servicer, the Securities Administrator or any agent of any of them shall be affected by notice to the contrary.

 

 

	
            SECTION 6.05.
 	
            Certain Available Information.
 

On or prior to the date of the first sale of any Class B Certificate, Class CE Certificate, Class P Certificate or Residual Certificate to an Independent third party, the Depositor shall provide to the Securities Administrator ten copies of any private placement memorandum or other disclosure document used by the Depositor in connection with the offer and sale of such Certificate. In addition, if any such private placement memorandum or disclosure document is revised, amended or supplemented at any time following the delivery thereof to the Securities Administrator, the Depositor promptly shall inform the Securities Administrator of such event and shall deliver to the Securities Administrator ten copies of the private placement memorandum or disclosure document, as revised, amended or supplemented. The Securities Administrator shall maintain at its office as set forth in Section 12.05
hereof and shall make available free of charge during normal business hours for review by any Holder of a Certificate or any Person identified to the Securities Administrator as a prospective transferee of a Certificate, originals or copies of the following items: (i) in the case of a Holder or prospective transferee of a Class B Certificate, Class CE Certificate, Class P Certificate or Residual Certificate, the related private placement memorandum or other disclosure document relating to such Class of Certificates, in the form most recently provided to the Securities Administrator; and (ii) in all cases, (A) this Agreement and any amendments hereof entered into pursuant to Section 11.01, (B) all monthly statements required to be delivered to Certificateholders of the relevant Class pursuant to Section 5.02 since the Closing Date, and all other notices, reports, statements and written communications delivered to the Certificateholders of the relevant Class pursuant to this Agreement
since the Closing Date and (C) any copies of all Officers’ Certificates of the Servicer since the Closing Date delivered to the Master Servicer to evidence such Person’s determination that any P&I Advance or Servicing Advance was, or if made, would be a Nonrecoverable P&I Advance or Nonrecoverable Servicing Advance. Copies and mailing of any and all of the foregoing items will be available from the Securities Administrator upon request at the expense of the Person requesting the same.

 

 

ARTICLE VII

 

THE DEPOSITOR, THE SERVICER AND THE MASTER SERVICER

SECTION 7.01.        Liability of the Depositor, the Servicer and the Master Servicer.

The Depositor, the Servicer and the Master Servicer each shall be liable in accordance herewith only to the extent of the obligations specifically imposed by this Agreement upon them in their respective capacities as Depositor, Servicer and Master Servicer and undertaken hereunder by the Depositor, the Servicer and the Master Servicer herein.

SECTION 7.02.        Merger or Consolidation of the Depositor, the Servicer or the Master Servicer. 

Subject to the following paragraph, the Depositor will keep in full effect its existence, rights and franchises as a corporation under the laws of the jurisdiction of its incorporation.  Subject to the following paragraph, the Servicer will keep in full effect its existence, rights and franchises as a limited partnership.  Subject to the following paragraph, the Master Servicer will keep in full effect its existence, rights and franchises as a national banking association. The Depositor, the Servicer and the Master Servicer each will obtain and preserve its qualification to do business as a foreign entity in each jurisdiction in which such qualification is or shall be necessary to protect the validity and enforceability of this Agreement, the Certificates or any of the Mortgage Loans and to perform its respective duties under this Agreement.

The Depositor, the Servicer or the Master Servicer may be merged or consolidated with or into any Person, or transfer all or substantially all of its assets to any Person, in which case any Person resulting from any merger or consolidation to which the Depositor, the Servicer or the Master Servicer shall be a party, or any Person succeeding to the business of the Depositor, the Servicer or the Master Servicer, shall be the successor of the Depositor, the Servicer or the Master Servicer, as the case may be, hereunder, without the execution or filing of any paper or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding; provided, however, that any successor to the Servicer or the Master Servicer shall meet the eligibility requirements set forth in Section 8.02(a) or Section 7.06, as applicable.

SECTION 7.03.        Limitation on Liability of the Depositor, the Servicer, the Master Servicer and Others.

None of the Depositor, the Servicer, the Securities Administrator, the Master Servicer or any of the directors, officers, employees or agents of the Depositor, the Servicer or the Master Servicer shall be under any liability to the Trust Fund or the Certificateholders for any action taken or for refraining from the taking of any action in good faith pursuant to this Agreement, or for errors in judgment; provided, however, that this provision shall not protect the Depositor, the Servicer, the Securities Administrator, the Master Servicer or any such person against any breach of warranties, representations or covenants made herein or against any specific liability imposed on any such Person pursuant hereto or against any liability which 

 

would otherwise be imposed by reason of willful misfeasance, bad faith or gross negligence in the performance of duties or by reason of reckless disregard of obligations and duties hereunder. The Depositor, the Servicer, the Securities Administrator, the Master Servicer and any director, officer, employee or agent of the Depositor, the Servicer, the Securities Administrator and the Master Servicer may rely in good faith on any document of any kind which, prima facie, is properly executed and submitted by any Person respecting any matters arising hereunder. The Depositor, the Servicer, the Securities Administrator, the Master Servicer and any director, officer, employee or agent of the Depositor, the Servicer, the Securities Administrator or the Master Servicer shall be indemnified and held harmless by the Trust Fund against any loss, liability or expense incurred in connection with any legal action
relating to this Agreement, the Certificates or any loss, liability or expense incurred other than by reason of willful misfeasance, bad faith or gross negligence in the performance of duties hereunder or by reason of reckless disregard of obligations and duties hereunder. None of the Depositor, the Servicer, the Securities Administrator or the Master Servicer shall be under any obligation to appear in, prosecute or defend any legal action unless such action is related to its respective duties under this Agreement and, in its opinion, does not involve it in any expense or liability; provided, however, that each of the Depositor, the Servicer, the Securities Administrator and the Master Servicer may in its discretion undertake any such action which it may deem necessary or desirable with respect to this Agreement and the rights and duties of the parties hereto and the interests of the Certificateholders hereunder. In such event, the legal expenses and costs of such action and any
liability resulting therefrom (except any loss, liability or expense incurred by reason of willful misfeasance, bad faith or gross negligence in the performance of duties hereunder or by reason of reckless disregard of obligations and duties hereunder) shall be expenses, costs and liabilities of the Trust Fund, and the Depositor, the Servicer, the Securities Administrator and the Master Servicer shall be entitled to be reimbursed therefor from the Collection Account or the Distribution Account as and to the extent provided in Article III and Article IV, any such right of reimbursement being prior to the rights of the Certificateholders to receive any amount in the Collection Account and the Distribution Account.

Notwithstanding anything to the contrary contained herein, the Servicer shall not be liable for any actions or inactions prior to the Cut-off Date of any prior servicer of the related Mortgage Loans and the Master Servicer shall not be liable for any action or inaction of the Servicer, except to the extent expressly provided herein.

	
            SECTION 7.04.
 	
            Limitation on Resignation of the Servicer.
 

(a)        The Servicer shall not resign from the obligations and duties hereby imposed on it except upon determination that its duties hereunder are no longer permissible under applicable law or as provided in Section 7.04(c). Any such determination pursuant to the preceding sentence permitting the resignation (other than pursuant to Section 7.04(c)) of the Servicer shall be evidenced by an Opinion of Counsel to such effect obtained at the expense of the Servicer and delivered to the Trustee, the Master Servicer and the Rating Agencies. No resignation of the Servicer shall become effective until the Master Servicer or a successor Servicer shall have assumed the Servicer’s responsibilities, duties, liabilities (other than those liabilities arising prior to the appointment of such successor) and obligations under this Agreement.

 

 

(b)        Except as expressly provided herein, the Servicer shall not assign or transfer any of its rights, benefits or privileges hereunder to any other Person, or delegate to or subcontract with, or authorize or appoint any other Person to perform any of the duties, covenants or obligations to be performed by the Servicer hereunder. The foregoing prohibition on assignment shall not prohibit the Servicer from designating a Sub-Servicer as payee of any indemnification amount payable to the Servicer hereunder; provided, however, that as provided in Section 3.02, no Sub-Servicer shall be a third-party beneficiary hereunder and the parties hereto shall not be required to recognize any Sub-Servicer as an indemnitee under this Agreement.

(c)        The Trustee and the Depositor hereby specifically (i) consent to the pledge and assignment by the Servicer of all of the Servicer’s right, title and interest in, to and under this Agreement to the Servicing Rights Pledgee, for the benefit of certain lenders and (ii) provided that no Servicer Event of Default exists, agree that upon delivery to the Master Servicer and Trustee by the Servicing Rights Pledgee of a letter signed by the Servicer whereunder the Servicer shall resign as Servicer under this Agreement, the Trustee shall appoint the Servicing Rights Pledgee or its designee as successor servicer, provided that at the time of such appointment, the Servicing Rights Pledgee or such designee meets the requirements of a successor servicer pursuant to Section 8.02 hereof and agrees to be subject to the terms of this Agreement.  If,
pursuant to any provision hereof, the duties of the Servicer are transferred to a successor servicer, the entire amount of the Servicing Fee and other compensation payable to the Servicer pursuant hereto shall thereafter be payable to such successor servicer.

	
            SECTION 7.05.
 	
            Limitation on Resignation of the Master Servicer.
 

The Master Servicer shall not resign from the obligations and duties hereby imposed on it except upon determination that its duties hereunder are no longer permissible under applicable law. Any such determination pursuant to the preceding sentence permitting the resignation of the Master Servicer shall be evidenced by an Opinion of Counsel to such effect obtained at the expense of the Master Servicer and delivered to the Trustee and the Rating Agencies. No resignation of the Master Servicer shall become effective until the Trustee or a successor Master Servicer meeting the criteria specified in Section 7.06 shall have assumed the Master Servicer’s responsibilities, duties, liabilities (other than those liabilities arising prior to the appointment of such successor) and obligations under this Agreement.

	
            SECTION 7.06.
 	
            Assignment of Master Servicing.
 

The Master Servicer may sell and assign its rights and delegate its duties and obligations in its entirety as Master Servicer under this Agreement; provided, however, that: (i) the purchaser or transferee accept in writing such assignment and delegation and assume the obligations of the Master Servicer hereunder (a) shall have a net worth of not less than $25,000,000 (unless otherwise approved by each Rating Agency pursuant to clause (ii) below); (b) shall be reasonably satisfactory to the Trustee (as evidenced in a writing signed by the Trustee); and (c) shall execute and deliver to the Trustee an agreement, in form and substance reasonably satisfactory to the Trustee, which contains an assumption by such Person of the due and punctual performance and observance of each covenant and condition to be performed or observed by it as master servicer under this Agreement, any custodial
agreement from and after 

 

the effective date of such agreement; (ii) each Rating Agency shall be given prior written notice of the identity of the proposed successor to the Master Servicer and each Rating Agency’s rating of the Certificates in effect immediately prior to such assignment, sale and delegation will not be downgraded, qualified or withdrawn as a result of such assignment, sale and delegation, as evidenced by a letter to such effect delivered to the Master Servicer and the Trustee; and  (iii) the Master Servicer assigning and selling the master servicing shall deliver to the Trustee an Officer’s Certificate and an Opinion of Independent counsel, each stating that all conditions precedent to such action under this Agreement have been completed and such action is permitted by and complies with the terms of this Agreement. No such assignment or delegation shall affect any liability of the Master Servicer arising
out of acts or omissions prior to the effective date thereof.

SECTION 7.07.        Rights of the Depositor in Respect of the Servicer and the Master Servicer.

Each of the Master Servicer and the Servicer shall afford (and any Sub-Servicing Agreement shall provide that each Sub-Servicer shall afford) the Depositor and the Trustee, upon reasonable notice, during normal business hours, access to all records maintained by the Master Servicer or the Servicer (and any such Sub-Servicer) in respect of the Servicer’s rights and obligations hereunder and access to officers of the Master Servicer or the Servicer (and those of any such Sub-Servicer) responsible for such obligations, and the Master Servicer shall have access to all such records maintained by the Servicer and any Sub-Servicers. Upon request, each of the Master Servicer and the Servicer shall furnish to the Depositor and the Trustee its (and any such Sub-Servicer’s) most recent financial statements (or, in the case of the Servicer, the most recent financial statements of the
consolidated group that includes the Servicer) and such other information relating to the Master Servicer’s or the Servicer’s capacity to perform its obligations under this Agreement as it possesses (and that any such Sub-Servicer possesses). To the extent that the Master Servicer or the Servicer informs the Depositor and the Trustee that such information is not otherwise available to the public, the Depositor and the Trustee shall not disseminate any information obtained pursuant to the preceding two sentences without the Master Servicer’s or the Servicer’s written consent, except as required pursuant to this Agreement or to the extent that it is appropriate to do so (i) to its legal counsel, auditors, taxing authorities or other governmental agencies and the Certificateholders, (ii) pursuant to any law, rule, regulation, order, judgment, writ, injunction or decree of any court or governmental authority having jurisdiction over the Depositor and the Trustee or the
Trust Fund, and in any case, the Depositor or the Trustee, (iii) disclosure of any and all information that is or becomes publicly known, or information obtained by the Trustee from sources other than the Depositor, the Servicer or the Master Servicer, (iv) disclosure as required pursuant to this Agreement or (v) disclosure of any and all information (A) in any preliminary or final offering circular, registration statement or contract or other document pertaining to the transactions contemplated by the Agreement approved in advance by the Depositor, the Servicer or the Master Servicer or (B) to any affiliate, independent or internal auditor, agent, employee or attorney of the Trustee having a need to know the same, provided that the Trustee advises such recipient of the confidential nature of the information being disclosed, shall use its best efforts to assure the confidentiality of any such disseminated non-public information. Nothing in this Section 7.07 shall limit the
obligation of the Servicer to comply with any applicable law prohibiting disclosure of information regarding the Mortgagors and the failure of the Servicer to provide access as 

 

provided in this Section 7.07 as a result of such obligation shall not constitute a breach of this Section.  Nothing in this Section 7.07 shall require the Servicer to collect, create, collate or otherwise generate any information that it does not generate in its usual course of business.  The Servicer shall not be required to make copies of or ship documents to any party unless provisions have been made for the reimbursement of the costs thereof. The Depositor may, but is not obligated to, enforce the obligations of the Master Servicer and the Servicer under this Agreement and may, but is not obligated to, perform, or cause a designee to perform, any defaulted obligation of the Master Servicer or the Servicer under this Agreement or exercise the rights of the Master Servicer or the Servicer under this Agreement; provided that neither the Master Servicer nor the Servicer shall be relieved of any
of its obligations under this Agreement by virtue of such performance by the Depositor or its designee. The Depositor shall not have any responsibility or liability for any action or failure to act by the Master Servicer or the Servicer and is not obligated to supervise the performance of the Master Servicer or the Servicer under this Agreement or otherwise.

 

 

ARTICLE VIII

 

DEFAULT

	
            SECTION 8.01.
 	
            Servicer Events of Default.
 

(a)        “Servicer Event of Default,” wherever used herein, means any one of the following events:

(i)         any failure by the Servicer to remit to the Securities Administrator for distribution to the Certificateholders any payment (other than a P&I Advance required to be made from its own funds on any Servicer Remittance Date pursuant to Section 5.03) required to be made by the Servicer under the terms of the Certificates and this Agreement which continues unremedied for a period of one Business Day after the date upon which written notice of such failure, requiring the same to be remedied, shall have been given to the Servicer by the Depositor or the Trustee (in which case notice shall be provided by telecopy), or to the Servicer, the Depositor and the Trustee by the Holders of Certificates entitled to at least 25% of the Voting Rights; or

(ii)         any failure on the part of the Servicer duly to observe or perform in any material respect any other of the covenants or agreements on the part of the Servicer contained in this Agreement, or the material breach by the Servicer of any representation and warranty contained in Section 2.05, which continues unremedied for a period of thirty (30) days after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Servicer by the Depositor or the Trustee or to the Servicer, the Depositor and the Trustee by the Holders of Certificates entitled to at least 25% of the Voting Rights; provided, however, that in the case of a failure that cannot be cured within thirty (30) days, the cure period may be extended for an additional thirty (30) days if the Servicer can
demonstrate to the reasonable satisfaction of the Trustee that the Servicer is diligently pursuing remedial action; or

(iii)        a decree or order of a court or agency or supervisory authority having jurisdiction in the premises in an involuntary case under any present or future federal or state bankruptcy, insolvency or similar law or the appointment of a conservator or receiver or liquidator in any insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceeding, or for the winding-up or liquidation of its affairs, shall have been entered against the Servicer and such decree or order shall have remained in force undischarged or unstayed for a period of ninety (90) days; or

(iv)        the Servicer shall consent to the appointment of a conservator or receiver or liquidator in any insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings of or relating to it or of or relating to all or substantially all of its property; or

(v)        the Servicer shall admit in writing its inability to pay its debts generally as they become due, file a petition to take advantage of any applicable 

 

insolvency or reorganization statute, make an assignment for the benefit of its creditors, or voluntarily suspend payment of its obligations;

(vi)        failure by the Servicer to duly perform, within the required time period, its obligations under Section 3.17, 3.18 or 3.19 which failure continues unremedied for a period of ten (10) days after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Servicer by any party to this Agreement; or

(vii)       any failure of the Servicer to make any P&I Advance on any Servicer Remittance Date required to be made from its own funds pursuant to Section 5.03 which continues unremedied until 3:00 p.m. New York time on the Business Day immediately following the Servicer Remittance Date; or

(viii)          failure of the Servicer to maintain at least an “average” rating from the Rating Agencies.

If a Servicer Event of Default described in clauses (i) through (vi) or (viii) of this Section shall occur, then, and in each and every such case, so long as such Servicer Event of Default shall not have been remedied, the Depositor or the Trustee may, and at the written direction of the Holders of Certificates entitled to at least 51% of Voting Rights, the Trustee shall, by notice in writing to the defaulting Servicer (and to the Depositor if given by the Trustee or to the Trustee if given by the Depositor) with a copy to the Master Servicer and each Rating Agency, terminate all of the rights and obligations of the defaulting Servicer in its capacity as Servicer under this Agreement, to the extent permitted by law, and in and to the Mortgage Loans and the proceeds thereof. If a Servicer Event of Default described in clause (vii) hereof shall occur, the Trustee shall, by notice in
writing to the defaulting Servicer, the Depositor and the Master Servicer, terminate all of the rights and obligations of the defaulting Servicer in its capacity as Servicer under this Agreement and in and to the Mortgage Loans and the proceeds thereof. Subject to Section 8.02, on or after the receipt by the defaulting Servicer of such written notice, all authority and power of the defaulting Servicer under this Agreement, whether with respect to the Certificates (other than as a Holder of any Certificate) or the Mortgage Loans or otherwise, shall pass to and be vested in the Master Servicer pursuant to and under this Section, and, without limitation, the Master Servicer is hereby authorized and empowered, as attorney-in-fact or otherwise, to execute and deliver, on behalf of and at the expense of the defaulting Servicer, any and all documents and other instruments and to do or accomplish all other acts or things necessary or appropriate to effect the purposes of such notice of
termination, whether to complete the transfer and endorsement or assignment of the Mortgage Loans and related documents, or otherwise.  The defaulting Servicer agrees promptly (and in any event no later than ten (10) Business Days subsequent to such notice) to provide the Master Servicer with all documents and records requested by it to enable it to assume the defaulting Servicer’s functions under this Agreement, and to cooperate with the Master Servicer in effecting the termination of the defaulting Servicer’s responsibilities and rights under this Agreement, including, without limitation, the transfer within one (1) Business Day to the Master Servicer for administration by it of all cash amounts which at the time shall be or should have been credited by the defaulting Servicer to the Collection Account held by or on behalf of the defaulting Servicer or thereafter be received with respect to the Mortgage Loans or any related REO Property (provided, however, 

 

that the defaulting Servicer shall continue to be entitled to receive all amounts accrued or owing to it under this Agreement on or prior to the date of such termination, whether in respect of P&I Advances, Servicing Advances, accrued and unpaid Servicing Fees or otherwise, and shall continue to be entitled to the benefits of Section 7.03, notwithstanding any such termination, with respect to events occurring prior to such termination). Reimbursement of unreimbursed P&I Advances, Servicing Advances and accrued and unpaid Servicing Fees shall be made on a first in, first out (“FIFO”) basis no later than the Servicer Remittance Date. For purposes of this Section 8.01(a), the Trustee shall not be deemed to have knowledge of a Servicer Event of Default unless a Responsible Officer of the Trustee assigned to and working in the Trustee’s Corporate Trust Office has actual
knowledge thereof or unless written notice of any event which is in fact such a Servicer Event of Default is received by the Trustee at its Corporate Trust Office and such notice references the Certificates, the Trust or this Agreement. The Trustee shall promptly notify the Master Servicer and the Rating Agencies of the occurrence of a Servicer Event of Default of which it has knowledge as provided above.

The Master Servicer shall be entitled to be reimbursed by the defaulting Servicer (or from amounts on deposit in the Distribution Account if the defaulting Servicer is unable to fulfill its obligations hereunder) for all reasonable out-of-pocket or third party costs associated with the transfer of servicing from the defaulting Servicer, including without limitation, any reasonable out-of-pocket or third party costs or expenses associated with the complete transfer of all servicing data and the completion, correction or manipulation of such servicing data as may be required by the Master Servicer to correct any errors or insufficiencies in the servicing data or otherwise to enable the Master Servicer to service the Mortgage Loans properly and effectively, upon presentation of reasonable documentation of such costs and expenses.  The Servicer shall be responsible for the costs set forth in
this paragraph with respect to one servicing transfer by Litton Loan Servicing LP.

(b)        “Master Servicer Event of Default,” wherever used herein, means any one of the following events:

(i)         any failure on the part of the Master Servicer duly to observe or perform in any material respect any other of the covenants or agreements on the part of the Master Servicer contained in this Agreement, or the breach by the Master Servicer of any representation and warranty contained in Section 2.04, which continues unremedied for a period of 30 days after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Master Servicer by the Depositor or the Trustee or to the Master Servicer, the Depositor and the Trustee by the Holders of Certificates entitled to at least 25% of the Voting Rights; or

(ii)         a decree or order of a court or agency or supervisory authority having jurisdiction in the premises in an involuntary case under any present or future federal or state bankruptcy, insolvency or similar law or the appointment of a conservator or receiver or liquidator in any insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceeding, or for the winding-up or liquidation of its affairs, shall have been entered against the Master Servicer and such decree or order shall have remained in force undischarged or unstayed for a period of 90 days; or

 

 

(iii)        the Master Servicer shall consent to the appointment of a conservator or receiver or liquidator in any insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings of or relating to it or of or relating to all or substantially all of its property; or

(iv)        the Master Servicer shall admit in writing its inability to pay its debts generally as they become due, file a petition to take advantage of any applicable insolvency or reorganization statute, make an assignment for the benefit of its creditors, or voluntarily suspend payment of its obligations.

If a Master Servicer Event of Default shall occur, then, and in each and every such case, so long as such Master Servicer Event of Default shall not have been remedied, the Depositor or the Trustee may, and at the written direction of the Holders of Certificates entitled to at least 51% of Voting Rights, the Trustee shall, by notice in writing to the Master Servicer (and to the Depositor if given by the Trustee or to the Trustee if given by the Depositor) with a copy to each Rating Agency, terminate all of the rights and obligations of the Master Servicer in its capacity as Master Servicer under this Agreement, to the extent permitted by law, and in and to the Mortgage Loans and the proceeds thereof. On or after the receipt by the Master Servicer of such written notice, all authority and power of the Master Servicer under this Agreement, whether with respect to the Certificates (other than
as a Holder of any Certificate) or the Mortgage Loans or otherwise including, without limitation, the compensation payable to the Master Servicer under this Agreement, shall pass to and be vested in the Trustee pursuant to and under this Section, and, without limitation, the Trustee is hereby authorized and empowered, as attorney-in-fact or otherwise, to execute and deliver, on behalf of and at the expense of the Master Servicer, any and all documents and other instruments and to do or accomplish all other acts or things necessary or appropriate to effect the purposes of such notice of termination, whether to complete the transfer and endorsement or assignment of the Mortgage Loans and related documents, or otherwise. The Master Servicer agrees promptly (and in any event no later than ten Business Days subsequent to such notice) to provide the Trustee with all documents and records requested by it to enable it to assume the Master Servicer’s functions under this Agreement, and to
cooperate with the Trustee in effecting the termination of the Master Servicer’s responsibilities and rights under this Agreement (provided, however, that the Master Servicer shall continue to be entitled to receive all amounts accrued or owing to it under this Agreement on or prior to the date of such termination and shall continue to be entitled to the benefits of Section 7.03, notwithstanding any such termination, with respect to events occurring prior to such termination). For purposes of this Section 8.01(b), the Trustee shall not be deemed to have knowledge of a Master Servicer Event of Default unless a Responsible Officer of the Trustee assigned to and working in the Trustee’s Corporate Trust Office has actual knowledge thereof or unless written notice of any event which is in fact such a Master Servicer Event of Default is received by the Trustee and such notice references the Certificates, the Trust or this Agreement. The Trustee shall promptly notify the
Rating Agencies of the occurrence of a Master Servicer Event of Default of which it has knowledge as provided above.

To the extent that the costs and expenses of the Trustee related to the termination of the Master Servicer, appointment of a successor Master Servicer or the transfer and assumption of the master servicing by the Trustee (including, without limitation, (i) all legal costs and expenses and all due diligence costs and expenses associated with an evaluation of the 

 

potential termination of the Master Servicer as a result of a Master Servicer Event of Default and (ii) all costs and expenses associated with the complete transfer of the master servicing, including all servicing files and all servicing data and the completion, correction or manipulation of such servicing data as may be required by the successor Master Servicer to correct any errors or insufficiencies in the servicing data or otherwise to enable the successor Master Servicer to master service the Mortgage Loans in accordance with this Agreement) are not fully and timely reimbursed by the terminated Master Servicer, the Trustee shall be entitled to reimbursement of such costs and expenses from the Distribution Account.  

Notwithstanding the foregoing, the Trustee may, if it shall be unwilling to continue to act, or shall, if it is unable to so act, petition a court of competent jurisdiction to appoint, or appoint on its own behalf, any established housing and home finance institution servicer, master servicer, servicing or mortgage servicing institution having a net worth of not less than $25,000,000 and meeting such other standards for a successor master servicer as are set forth in this Agreement, as the successor to such Master Servicer in the assumption of all of the responsibilities, duties or liabilities of a master servicer.

	
            SECTION 8.02.
 	
            Master Servicer to Act; Appointment of Successor.
 

(a)        On and after the time the Servicer receives a notice of termination, the Master Servicer shall be the successor in all respects to the Servicer in its capacity as the Servicer under this Agreement and the transactions set forth or provided for herein, and all the responsibilities, duties and liabilities relating thereto and arising thereafter shall be assumed by the Master Servicer (except for any representations or warranties of the Servicer under this Agreement, the responsibilities, duties and liabilities contained in Section 2.03 and the obligation to deposit amounts in respect of losses pursuant to Section 3.10(b)) by the terms and provisions hereof including, without limitation, the Servicer’s obligations to make P&I Advances pursuant to Section 5.03 of this Agreement; provided, however, that if the Master
Servicer is prohibited by law or regulation from obligating itself to make advances regarding delinquent mortgage loans, then the Master Servicer shall not be obligated to make P&I Advances pursuant to Section 5.03 of this Agreement; and provided further, that any failure to perform such duties or responsibilities caused by the Servicer’s failure to provide information required by Section 8.01 shall not be considered a default by the Master Servicer as successor to the Servicer hereunder; provided, however, that (1) it is understood and acknowledged by the parties hereto that there will be a period of transition (not to exceed 120 days) before the actual servicing functions can be fully transferred to the Master Servicer or any successor servicer appointed in accordance with the following provisions and (2) any failure to perform such duties or responsibilities caused by the Servicer’s failure to provide information required by Section 8.01 of this
Agreement shall not be considered a default by the Master Servicer as successor to the Servicer. As compensation therefor, the Master Servicer shall be entitled to the Servicing Fee and all funds relating to the Mortgage Loans to which the terminated Servicer would have been entitled if it had continued to act hereunder. Notwithstanding the above and subject to the immediately following paragraph, the Master Servicer may, if it shall be unwilling to so act, or shall, if it is unable to so act promptly appoint or petition a court of competent jurisdiction to appoint, a Person that satisfies the eligibility criteria set forth below as the successor to the terminated Servicer under this Agreement in the assumption of all or any part of the responsibilities, duties or liabilities of the terminated Servicer under this Agreement.

 

 

Notwithstanding anything herein to the contrary, in no event shall the Trustee or the Master Servicer be liable for any Servicing Fee or for any differential in the amount of the Servicing Fee paid hereunder and the amount necessary to induce any successor servicer to act as successor servicer under this Agreement and the transactions set forth or provided for herein.

Any successor servicer appointed under this Agreement must (i) be an established mortgage loan servicing institution that is a Fannie Mae and Freddie Mac approved seller/servicer, (ii) be approved by each Rating Agency by a written confirmation from each Rating Agency that the appointment of such successor servicer would not result in the reduction or withdrawal of the then current ratings of any outstanding Class of Certificates, (iii) have a net worth of not less than $25,000,000 and (iv) assume all the responsibilities, duties or liabilities of the Servicer (other than liabilities of the Servicer hereunder incurred prior to termination of the Servicer under Section 8.01 herein) under this Agreement as if originally named as a party to this Agreement.

(b)        (1)  Subject to the last paragraph of Section 8.01(a), all servicing transfer costs (including, without limitation, servicing transfer costs of the type described in Section 8.01(a) and incurred by the Trustee, the Master Servicer and any successor servicer) shall be paid by the terminated Servicer upon presentation of reasonable documentation of such costs, and if such predecessor or initial Servicer, as applicable, defaults in its obligation to pay such costs, the successor servicer, the Master Servicer and the Trustee shall be entitled to reimbursement therefor from the assets of the Trust Fund.

(2)  No appointment of a successor to the Servicer under this Agreement shall be effective until the assumption by the successor of all of the Servicer’s responsibilities, duties and liabilities hereunder. In connection with such appointment and assumption described herein, the Trustee may make such arrangements for the compensation of such successor out of payments on the Mortgage Loans as it and such successor shall agree; provided, however, that no such compensation shall be in excess of that permitted the Servicer as such hereunder. The Depositor, the Trustee and such successor shall take such action, consistent with this Agreement, as shall be necessary to effectuate any such succession. Pending appointment of a successor to the Servicer under this Agreement, the Master Servicer shall act in such capacity as hereinabove provided.

(c)        (1)  In the event of a Servicer Event of Default, notwithstanding anything to the contrary above, the Trustee, the Master Servicer and the Depositor hereby agree that upon delivery to the Trustee by the Servicing Rights Pledgee of a letter signed by the Servicer within ten Business Days of when notification of such event shall have been provided to the Trustee, whereunder the Servicer shall resign as Servicer under this Agreement, the Trustee shall appoint the Servicing Rights Pledgee or its designee as successor servicer, provided that (i) at the time of such appointment, the Servicing Rights Pledgee or such designee meets the requirements of a successor servicer set forth in the last paragraph of 8.02(a) above and the Servicing Rights Pledgee or such designee agrees to be subject to the terms of this Agreement and (ii) no later than the
end of the ten Business Day period described above, the Servicing Rights Pledgee has caused the Master Servicer to be fully reimbursed for any P&I Advance made by the Master Servicer during such period to the extent the Servicing Rights Pledgee or its designee is to be appointed as successor servicer pursuant to this clause (c)(1).

 

 

(2)  In the event that the Servicing Rights Pledgee does not deliver to the Trustee the letter described in preceding paragraph within the time period specified therein, the Trustee shall give notice thereof in writing to the Master Servicer and upon receipt of such notice, the Master Servicer shall be the successor in all respects to the Servicer in its capacity as Servicer under this Agreement and the transactions set forth or provided for herein, and all the responsibilities, duties and liabilities relating thereto and arising thereafter shall be assumed by the Master Servicer in accordance with clause (a) of this Section 8.02.

	
            SECTION 8.03.
 	
            Notification to Certificateholders.
 

(a)        Upon any termination of the Servicer or the Master Servicer pursuant to Section 8.01(a) or (b) or any appointment of a successor to the Servicer or the Master Servicer pursuant to Section 8.02, the Trustee shall give prompt written notice thereof to the Certificateholders at their respective addresses appearing in the Certificate Register.

(b)        Not later than the later of sixty (60) days after the occurrence of any event, which constitutes or which, with notice or lapse of time or both, would constitute a Servicer Event of Default or a Master Servicer Event of Default or five (5) days after a Responsible Officer of the Trustee becomes aware of the occurrence of such an event, the Trustee shall transmit by mail to all Holders of Certificates notice of each such occurrence, unless such default or Servicer Event of Default or Master Servicer Event of Default shall have been cured or waived.

	
            SECTION 8.04.
 	
            Waiver of Events of Default.
 

The Holders representing at least 66% of the Voting Rights evidenced by all Classes of Certificates affected by any default, Servicer Event of Default or Master Servicer Event of Default hereunder may waive such default, Servicer Event of Default or Master Servicer Event of Default; provided, however, that a Servicer Event of Default under clause (i) or (vii) of Section 8.01(a) may be waived only by all of the Holders of the Regular Certificates. Upon any such waiver of a default, Servicer Event of Default or Master Servicer Event of Default, such default, Servicer Event of Default or Master Servicer Event of Default shall cease to exist and shall be deemed to have been remedied for every purpose hereunder. No such waiver shall extend to any subsequent or other default, Servicer Event of Default or Master Servicer Event of Default or impair any right consequent thereon except to the
extent expressly so waived.

 

 

ARTICLE IX

 

CONCERNING THE TRUSTEE AND THE SECURITIES ADMINISTRATOR

	
            SECTION 9.01.
 	
            Duties of Trustee and Securities Administrator.
 

The Trustee, prior to the occurrence of a Master Servicer Event of Default and after the curing or waiver of all Master Servicer Events of Default which may have occurred, and the Securities Administrator each undertake to perform such duties and only such duties as are specifically set forth in this Agreement as duties of the Trustee and the Securities Administrator, respectively. During the continuance of a Master Servicer Event of Default, the Trustee shall exercise such of the rights and powers vested in it by this Agreement, and use the same degree of care and skill in its exercise as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs. Any permissive right of the Trustee enumerated in this Agreement shall not be construed as a duty.

Each of the Trustee and the Securities Administrator, upon receipt of all resolutions, certificates, statements, opinions, reports, documents, orders or other instruments furnished to it, which are specifically required to be furnished pursuant to any provision of this Agreement, shall examine them to determine whether they conform to the requirements of this Agreement. If any such instrument is found not to conform to the requirements of this Agreement in a material manner, the Trustee or the Securities Administrator, as the case may be, shall take such action as it deems appropriate to have the instrument corrected, and if the instrument is not corrected to its satisfaction, the Securities Administrator will provide notice to the Trustee thereof and the Trustee will provide notice to the Certificateholders.

The Trustee shall promptly remit to the Servicer any complaint, claim, demand, notice or other document (collectively, the “Notices”) delivered to the Trustee as a consequence of the assignment of any Mortgage Loan hereunder and relating to the servicing of the Mortgage Loans; provided than any such notice (i) is delivered to the Trustee at its Corporate Trust Office, (ii) contains information sufficient to permit the Trustee to make a determination that the real property to which such document relates is a Mortgaged Property. The Trustee shall have no duty hereunder with respect to any Notice it may receive or which may be alleged to have been delivered to or served upon it unless such Notice is delivered to it or served upon it at its Corporate Trust Office and such Notice contains the information required pursuant to clause (ii) of the preceding sentence.

No provision of this Agreement shall be construed to relieve the Trustee or the Securities Administrator from liability for its own negligent action, its own negligent failure to act or its own misconduct; provided, however, that:

(i)         Prior to the occurrence of a Master Servicer Event of Default and after the curing or waiver of all such Master Servicer Events of Default which may have occurred with respect to the Trustee and at all times with respect to the Securities Administrator, the duties and obligations of the Trustee shall be determined solely by the express provisions of this Agreement, neither the Trustee nor the Securities Administrator shall be liable except for the performance of such duties and obligations as are 

 

specifically set forth in this Agreement, no implied covenants or obligations shall be read into this Agreement against the Trustee or the Securities Administrator and, in the absence of bad faith on the part of the Trustee or the Securities Administrator, respectively, the Trustee or the Securities Administrator, respectively, may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Trustee or the Securities Administrator, respectively, that conform to the requirements of this Agreement;

(ii)         Neither the Trustee nor the Securities Administrator shall be liable for an error of judgment made in good faith by a Responsible Officer or Responsible Officers of the Trustee or an officer or officers of the Securities Administrator, respectively, unless it shall be proved that the Trustee or the Securities Administrator, respectively, was negligent in ascertaining the pertinent facts; and

(iii)        Neither the Trustee nor the Securities Administrator shall be liable with respect to any action taken, suffered or omitted to be taken by it in good faith in accordance with the direction of the Holders of Certificates entitled to at least 25% of the Voting Rights relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee or the Securities Administrator or exercising any trust or power conferred upon the Trustee or the Securities Administrator under this Agreement.

SECTION 9.02.        Certain Matters Affecting Trustee and Securities Administrator.

	
            (a)
 	
            Except as otherwise provided in Section 9.01:
 

(i)         The Trustee and the Securities Administrator may request and rely upon and shall be protected in acting or refraining from acting upon any resolution, Officers’ Certificate, certificate of auditors or any other certificate, statement, instrument, opinion, report, notice, request, consent, order, appraisal, bond or other paper or document reasonably believed by it to be genuine and to have been signed or presented by the proper party or parties;

(ii)         The Trustee and the Securities Administrator may consult with counsel of its selection and any advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken or suffered or omitted by it hereunder in good faith and in accordance with such advice or Opinion of Counsel;

(iii)        Neither the Trustee nor the Securities Administrator shall be under any obligation to exercise any of the trusts or powers vested in it by this Agreement or to institute, conduct or defend any litigation hereunder or in relation hereto at the request, order or direction of any of the Certificateholders, pursuant to the provisions of this Agreement, unless such Certificateholders shall have offered to the Trustee or the Securities Administrator, as the case may be, reasonable security or indemnity satisfactory to it against the costs, expenses and liabilities which may be incurred therein 

 

or thereby; nothing contained herein shall, however, relieve the Trustee of the obligation, upon the occurrence of a Master Servicer Event of Default (which has not been cured or waived), to exercise such of the rights and powers vested in it by this Agreement, and to use the same degree of care and skill in their exercise as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs;

(iv)        Neither the Trustee nor the Securities Administrator shall be liable for any action taken, suffered or omitted by it in good faith and believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Agreement;

(v)        Prior to the occurrence of a Master Servicer Event of Default hereunder and after the curing or waiver of all Master Servicer Events of Default which may have occurred with respect to the Trustee and at all times with respect to the Securities Administrator, neither the Trustee nor the Securities Administrator shall be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond or other paper or document, unless requested in writing to do so by the Holders of Certificates entitled to at least 25% of the Voting Rights; provided, however, that if the payment within a reasonable time to the Trustee or the Securities Administrator of the costs, expenses or liabilities likely to be incurred by it in the
making of such investigation is, in the opinion of the Trustee or the Securities Administrator, as applicable, not reasonably assured to the Trustee or the Securities Administrator by such Certificateholders, the Trustee or the Securities Administrator, as applicable, may require reasonable indemnity satisfactory to it against such expense, or liability from such Certificateholders as a condition to taking any such action;

(vi)        The Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder;

(vii)       The Trustee shall not be liable for any loss resulting from (a) the investment of funds held in the Collection Account, (b) the investment of funds held in the Distribution Account, (c) the investment of funds held in the Reserve Fund or (d) the redemption or sale of any such investment as therein authorized;

(viii)      The Trustee shall not be deemed to have notice of any default, Master Servicer Event of Default or Servicer Event of Default unless a Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of any event which is in fact such a default is received by a Responsible Officer of the Trustee at the Corporate Trust Office of the Trustee, and such notice references the Certificates and this Agreement; and

(ix)        The rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified, are extended to, 

 

and shall be enforceable by, each agent, custodian and other Person employed to act hereunder.

(b)        All rights of action under this Agreement or under any of the Certificates, enforceable by the Trustee, may be enforced by it without the possession of any of the Certificates, or the production thereof at the trial or other proceeding relating thereto, and any such suit, action or proceeding instituted by the Trustee shall be brought in its name for the benefit of all the Holders of such Certificates, subject to the provisions of this Agreement.

(c)        The Trustee is hereby directed by the Depositor to execute the Swap Agreement on behalf of the Supplemental Interest Trust in the form presented to it by the Depositor and shall have no responsibility for the contents of the Swap Agreement, including, without limitation, the representations and warranties contained therein. Any funds payable by the Trustee on behalf of the Supplemental Interest Trust under the Swap Agreement shall be paid from funds of the Supplemental Interest Trust in accordance with the terms and provisions of the Swap Agreement. Notwithstanding anything to the contrary contained herein or in the Swap Agreement, the Trustee shall not be required to make any payments to the counterparty under the Swap Agreement.

(d)        None of the Securities Administrator, the Master Servicer, the Servicer, the Seller, the Depositor, the Custodian or the Trustee shall be responsible for the acts or omissions of the others or the Swap Provider, it being understood that this Agreement shall not be construed to render those partners joint venturers or agents of one another.

SECTION 9.03.        Trustee and Securities Administrator not Liable for Certificates or Mortgage Loans.

The recitals contained herein and in the Certificates (other than the signature of the Securities Administrator, the authentication of the Securities Administrator on the Certificates, the acknowledgments of the Trustee contained in Article II and the representations and warranties of the Trustee in Section 9.12) shall be taken as the statements of the Depositor and neither the Trustee nor the Securities Administrator assumes any responsibility for their correctness. Neither the Trustee nor the Securities Administrator makes any representations or warranties as to the validity or sufficiency of this Agreement (other than as specifically set forth in Section 9.12), the Swap Agreement or of the Certificates (other than the signature of the Securities Administrator and authentication of the Securities Administrator on the Certificates) or of any Mortgage Loan or related document.
The Trustee and the Securities Administrator shall not be accountable for the use or application by the Depositor of any of the Certificates or of the proceeds of such Certificates, or for the use or application of any funds paid to the Depositor or the Master Servicer in respect of the Mortgage Loans or deposited in or withdrawn from the Collection Account by the Servicer, other than with respect to the Securities Administrator any funds held by it or on behalf of the Trustee in accordance with Section 3.23 and 3.24.

 

 

SECTION 9.04.        Trustee and Securities Administrator May Own Certificates.

Each of the Trustee and the Securities Administrator in its individual capacity or any other capacity may become the owner or pledgee of Certificates and may transact business with other interested parties and their Affiliates with the same rights it would have if it were not Trustee or the Securities Administrator.

	
            SECTION 9.05.
 	
            Fees and Expenses of Trustee and Securities Administrator.
 

The fees of the Trustee and the Securities Administrator hereunder and of DBNT as the Custodian shall be paid in accordance with a side letter agreement with the Master Servicer and at the sole expense of the Master Servicer. In addition, the Trustee, the Securities Administrator, the Custodian and any director, officer, employee or agent of the Trustee, the Securities Administrator and the Custodian shall be indemnified by the Trust and held harmless against any loss, liability or expense (including reasonable attorney’s fees and expenses) incurred by the Trustee, the Custodian or the Securities Administrator in connection with any claim or legal action or any pending or threatened claim or legal action arising out of or in connection with the acceptance or administration of its respective obligations and duties under this Agreement, including the Swap Agreement and any and all other
agreements related hereto, other than any loss, liability or expense (i) for which the Trustee is indemnified by the Master Servicer or any Servicer, (ii) that constitutes a specific liability of the Trustee or the Securities Administrator pursuant to Section 11.01(g) or (iii) any loss, liability or expense incurred by reason of willful misfeasance, bad faith or negligence in the performance of duties hereunder by the Trustee or the Securities Administrator or by reason of reckless disregard of obligations and duties hereunder. In no event shall the Trustee or the Securities Administrator be liable for special, indirect or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even if it has been advised of the likelihood of such loss or damage and regardless of the form of action. The Master Servicer agrees to indemnify the Trustee, from, and hold the Trustee harmless against, any loss, liability or expense (including reasonable
attorney’s fees and expenses) incurred by the Trustee by reason of the Master Servicer’s willful misfeasance, bad faith or gross negligence in the performance of its duties under this Agreement or by reason of the Master Servicer’s reckless disregard of its obligations and duties under this Agreement. In addition, the Seller agrees to indemnify the Trustee for, and to hold the Trustee harmless against, any loss, liability or expense arising out of, or in connection with, the provisions set forth in the last paragraph of Section 2.01, including, without limitation, all costs, liabilities and expenses (including reasonable legal fees and expenses) of investigating and defending itself against any claim, action or proceeding, pending or threatened, relating to the provisions of such paragraph. The indemnities in this Section 9.05 shall survive the termination or discharge of this Agreement and the resignation or removal of the Master Servicer, the Trustee, the
Securities Administrator or the Custodian. Any payment hereunder made by the Master Servicer to the Trustee shall be from the Master Servicer’s own funds, without reimbursement from REMIC I therefor.

 

 

SECTION 9.06.        Eligibility Requirements for Trustee and Securities Administrator.

The Trustee and the Securities Administrator shall at all times be a corporation or an association (other than the Depositor, the Seller, the Master Servicer or any Affiliate of the foregoing) organized and doing business under the laws of any state or the United States of America, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least $50,000,000 (or a member of a bank holding company whose capital and surplus is at least $50,000,000) and subject to supervision or examination by federal or state authority. If such corporation or association publishes reports of conditions at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purposes of this Section the combined capital and surplus of such corporation or association shall be deemed to be its combined capital
and surplus as set forth in its most recent report of conditions so published. In case at any time the Trustee or the Securities Administrator, as applicable, shall cease to be eligible in accordance with the provisions of this Section, the Trustee or the Securities Administrator, as applicable, shall resign immediately in the manner and with the effect specified in Section 9.07.

SECTION 9.07.        Resignation and Removal of Trustee and Securities Administrator.

The Trustee and the Securities Administrator may at any time resign and be discharged from the trust hereby created by giving written notice thereof to the Depositor, to the Master Servicer, to the Securities Administrator (or the Trustee, if the Securities Administrator resigns) and to the Certificateholders. Upon receiving such notice of resignation, the Depositor shall promptly appoint a successor trustee or successor securities administrator by written instrument, in duplicate, which instrument shall be delivered to the resigning Trustee or Securities Administrator, as applicable, and to the successor trustee or successor securities administrator, as applicable. A copy of such instrument shall be delivered to the Certificateholders, the Trustee, the Securities Administrator and the Master Servicer by the Depositor. If no successor trustee or successor securities administrator shall
have been so appointed and have accepted appointment within thirty (30) days after the giving of such notice of resignation, the resigning Trustee or Securities Administrator, as the case may be, may, at the expense of the Trust Fund, petition any court of competent jurisdiction for the appointment of a successor trustee, successor securities administrator, Trustee or Securities Administrator, as applicable.

If at any time the Trustee or the Securities Administrator shall cease to be eligible in accordance with the provisions of Section 9.06 and shall fail to resign after written request therefor by the Depositor, or if at any time the Trustee or the Securities Administrator shall become incapable of acting, or shall be adjudged bankrupt or insolvent, or a receiver of the Trustee or the Securities Administrator or of its property shall be appointed, or any public officer shall take charge or control of the Trustee or the Securities Administrator or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, then the Depositor may remove the Trustee or the Securities Administrator, as applicable and appoint a successor trustee or successor securities administrator, as applicable, by written instrument, in duplicate, which instrument shall be delivered to the
Trustee or the Securities Administrator so removed and to 

 

the successor trustee or successor securities administrator. A copy of such instrument shall be delivered to the Certificateholders, the Trustee, the Securities Administrator and the Master Servicer by the Depositor.

The Holders of Certificates entitled to at least 51% of the Voting Rights may at any time remove the Trustee or the Securities Administrator and appoint a successor trustee or successor securities administrator by written instrument or instruments, in triplicate, signed by such Holders or their attorneys-in-fact duly authorized, one complete set of which instruments shall be delivered to the Depositor, one complete set to the Trustee or the Securities Administrator so removed and one complete set to the successor so appointed. A copy of such instrument shall be delivered to the Certificateholders, the Trustee (in the case of the removal of the Securities Administrator), the Securities Administrator (in the case of the removal of the Trustee) and the Master Servicer by the Depositor.

Any resignation or removal of the Trustee or the Securities Administrator and appointment of a successor trustee or successor securities administrator pursuant to any of the provisions of this Section shall not become effective until acceptance of appointment by the successor trustee or successor securities administrator, as applicable, as provided in Section 9.08.

Notwithstanding anything to the contrary contained herein, the Master Servicer and the Securities Administrator shall at all times be the same Person.

	
            SECTION 9.08.
 	
            Successor Trustee or Securities Administrator.
 

Any successor trustee or successor securities administrator appointed as provided in Section 9.07 shall execute, acknowledge and deliver to the Depositor and its predecessor trustee or predecessor securities administrator an instrument accepting such appointment hereunder, and thereupon the resignation or removal of the predecessor trustee or predecessor securities administrator shall become effective and such successor trustee or successor securities administrator without any further act, deed or conveyance, shall become fully vested with all the rights, powers, duties and obligations of its predecessor hereunder, with the like effect as if originally named as trustee or securities administrator herein. The predecessor trustee or predecessor securities administrator shall deliver to the successor trustee or successor securities administrator all Mortgage Loan Documents and related
documents and statements to the extent held by it hereunder, as well as all monies, held by it hereunder, and the Depositor and the predecessor trustee or predecessor securities administrator shall execute and deliver such instruments and do such other things as may reasonably be required for more fully and certainly vesting and confirming in the successor trustee or successor securities administrator all such rights, powers, duties and obligations.

No successor trustee or successor securities administrator shall accept appointment as provided in this Section unless at the time of such acceptance such successor trustee or successor securities administrator shall be eligible under the provisions of Section 9.06 and the appointment of such successor trustee or successor securities administrator shall not result in a downgrading of any Class of Certificates by any Rating Agency, as evidenced by a letter from each Rating Agency.

 

 

Upon acceptance of appointment by a successor trustee or successor securities administrator as provided in this Section, the Depositor shall mail notice of the succession of such trustee hereunder to all Holders of Certificates at their addresses as shown in the Certificate Register. If the Depositor fails to mail such notice within ten (10) days after acceptance of appointment by the successor trustee or successor securities administrator, the successor trustee or successor securities administrator shall cause such notice to be mailed at the expense of the Depositor.

SECTION 9.09.        Merger or Consolidation of Trustee or Securities Administrator.

Any corporation or association into which the Trustee or the Securities Administrator may be merged or converted or with which it may be consolidated or any corporation or association resulting from any merger, conversion or consolidation to which the Trustee or the Securities Administrator shall be a party, or any corporation or association succeeding to the business of the Trustee or the Securities Administrator shall be the successor of the Trustee or the Securities Administrator hereunder, provided such corporation or association shall be eligible under the provisions of Section 9.06, without the execution or filing of any paper or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding.

	
            SECTION 9.10.
 	
            Appointment of Co-Trustee or Separate Trustee.
 

Notwithstanding any other provisions hereof, at any time, for the purpose of meeting any legal requirements of any jurisdiction in which any part of the REMIC I or property securing the same may at the time be located, the Trustee shall have the power and shall execute and deliver all instruments to appoint one or more Persons approved by the Trustee to act as co-trustee or co-trustees, jointly with the Trustee, or separate trustee or separate trustees, of all or any part of REMIC I, and to vest in such Person or Persons, in such capacity, and for the benefit of the Holders of the Certificates, such title to REMIC I, or any part thereof, and, subject to the other provisions of this Section 9.10, such powers, duties, obligations, rights and trusts as the Trustee may consider necessary or desirable. No co-trustee or separate trustee hereunder shall be required to meet the terms of
eligibility as a successor trustee under Section 9.06 hereunder and no notice to Holders of Certificates of the appointment of co-trustee(s) or separate trustee(s) shall be required under Section 9.08 hereof.

In the case of any appointment of a co-trustee or separate trustee pursuant to this Section 9.10 all rights, powers, duties and obligations conferred or imposed upon the Trustee shall be conferred or imposed upon and exercised or performed by the Trustee and such separate trustee or co-trustee jointly, except to the extent that under any law of any jurisdiction in which any particular act or acts are to be performed by the Trustee (whether as Trustee hereunder or as successor to a defaulting Master Servicer hereunder), the Trustee shall be incompetent or unqualified to perform such act or acts, in which event such rights, powers, duties and obligations (including the holding of title to REMIC I or any portion thereof in any such jurisdiction) shall be exercised and performed by such separate trustee or co-trustee at the direction of the Trustee.

 

 

Any notice, request or other writing given to the Trustee shall be deemed to have been given to each of the then separate trustees and co-trustees, as effectively as if given to each of them. Every instrument appointing any separate trustee or co-trustee shall refer to this Agreement and the conditions of this Article IX. Each separate trustee and co-trustee, upon its acceptance of the trust conferred, shall be vested with the estates or property specified in its instrument of appointment, either jointly with the Trustee, or separately, as may be provided therein, subject to all the provisions of this Agreement, specifically including every provision of this Agreement relating to the conduct of, affecting the liability of, or affording protection to, the Trustee. Every such instrument shall be filed with the Trustee.

Any separate trustee or co-trustee may, at any time, constitute the Trustee, its agent or attorney-in-fact, with full power and authority, to the extent not prohibited by law, to do any lawful act under or in respect of this Agreement on its behalf and in its name. If any separate trustee or co-trustee shall die, become incapable of acting, resign or be removed, all of its estates, properties, rights, remedies and trusts shall vest in and be exercised by the Trustee, to the extent permitted by law, without the appointment of a new or successor trustee or co-trustee.

	
            SECTION 9.11.
 	
            Appointment of Office or Agency.
 

The Certificates may be surrendered for registration of transfer or exchange at the Securities Administrator’s office located at Sixth and Marquette, Minneapolis, Minnesota 55479, and presented for final distribution at the Corporate Trust Office of the Securities Administrator where notices and demands to or upon the Securities Administrator in respect of the Certificates and this Agreement may be served.

	
            SECTION 9.12.
 	
            Representations and Warranties.
 

The Trustee hereby represents and warrants to the Master Servicer, the Securities Administrator, the Servicer and the Depositor as applicable, as of the Closing Date, that:

(i)         It is a national banking association duly organized, validly existing and in good standing under the laws of the United States of America.

(ii)         The execution and delivery of this Agreement by it, and the performance and compliance with the terms of this Agreement by it, will not violate its articles of association or bylaws or constitute a default (or an event which, with notice or lapse of time, or both, would constitute a default) under, or result in the breach of, any material agreement or other instrument to which it is a party or which is applicable to it or any of its assets.

(iii)        It has the full power and authority 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.

(iv)        This Agreement, assuming due authorization, execution and delivery by the other parties hereto, constitutes a valid, legal and binding obligation of it, enforceable against it in accordance with the terms hereof, subject to (A) applicable bankruptcy, insolvency, receivership, reorganization, moratorium and other laws 

 

affecting the enforcement of creditors’ rights generally, and (B) general principles of equity, regardless of whether such enforcement is considered in a proceeding in equity or at law.

(v)        It is not in violation of, and its execution and delivery of this Agreement and its performance and compliance with the terms of this Agreement will not constitute a violation of, any law, any order or decree of any court or arbiter, or any order, regulation or demand of any federal, state or local governmental or regulatory authority, which violation, in its good faith and reasonable judgment, is likely to affect materially and adversely either the ability of it to perform its obligations under this Agreement or its financial condition.

(vi)        No litigation is pending or, to the best of its knowledge, threatened against it, which would prohibit it from entering into this Agreement or, in its good faith reasonable judgment, is likely to materially and adversely affect either the ability of it to perform its obligations under this Agreement or its financial condition.

 

 

ARTICLE X

 

TERMINATION

SECTION 10.01.      Termination Upon Repurchase or Liquidation of All Mortgage Loans.

(a)        Subject to Section 10.02, the respective obligations and responsibilities under this Agreement of the Depositor, the Master Servicer, the Securities Administrator, the Servicer and the Trustee (other than the obligations of the Master Servicer to the Trustee pursuant to Section 9.05 and of the Servicer to make remittances to the Securities Administrator and the Securities Administrator to make payments in respect of the REMIC I Regular Interests, REMIC I Regular Interests or the Classes of Certificates as hereinafter set forth) shall terminate upon payment to the Certificateholders and the deposit of all amounts held by or on behalf of the Trustee and required hereunder to be so paid or deposited on the Distribution Date coinciding with or following the earlier to occur of (i) the purchase by the Terminator (as defined below) of
all Mortgage Loans and each REO Property remaining in REMIC I and (ii) the final payment or other liquidation (or any advance with respect thereto) of the last Mortgage Loan or REO Property remaining in REMIC I; provided, however, that in no event shall the trust created hereby continue beyond the earlier of (i) the expiration of 21 years from the death of the last survivor of the descendants of Joseph P. Kennedy, the late ambassador of the United States to the Court of St. James, living on the date hereof and (ii) the Last Scheduled Distribution Date.  The purchase by the Terminator of all Mortgage Loans and each REO Property remaining in REMIC I shall be at a price (the “Termination Price”) equal to the sum of (i) the greater of (A) the aggregate Purchase Price of all the Mortgage Loans included in REMIC I, plus the appraised value of each REO Property, if any, included in REMIC I, such appraisal to be conducted by an appraiser mutually agreed upon by the Master Servicer
and the Trustee in their reasonable discretion and (B) the aggregate fair market value of all of the assets of REMIC I (as determined by the Master Servicer and the Trustee, as of the close of business on the third Business Day next preceding the date upon which notice of any such termination is furnished to Certificateholders pursuant to the third paragraph of this Section 10.01), (ii) any Swap Termination Payment payable to the Swap Provider not due to a Swap Provider Trigger Event, which remains unpaid or which is due to the exercise of the optional termination right by the Terminator plus (iii) any amounts due the Servicer and the Master Servicer in respect of unpaid Servicing Fees and outstanding P&I Advances and Servicing Advances.  

(b)        The Servicer or, if the Servicer fails to exercise such optional termination right, the Master Servicer (either the Servicer or the Master Servicer, the “Terminator”), shall have the right to purchase all of the Mortgage Loans and each REO Property remaining in REMIC I pursuant to clause (i) of the preceding paragraph no later than the Determination Date in the month immediately preceding the Distribution Date on which the Certificates will be retired; provided, however, that the Terminator may elect to purchase all of the Mortgage Loans and each REO Property remaining in REMIC I pursuant to clause (i) above only if the aggregate Scheduled Principal Balance of the Mortgage Loans and each REO Property remaining in the Trust Fund at the time of such election is reduced to less than or equal to (i) with respect to the Servicer, 10%
of the aggregate Scheduled Principal Balance of the Mortgage Loans as of the Cut-off Date and (ii) with respect to the Master Servicer, 5% of the aggregate Scheduled 

 

Principal Balance of the Mortgage Loans as of the Cut-off Date. By acceptance of the Residual Certificates, the Holder of the Residual Certificates agrees, in connection with any termination hereunder, to assign and transfer any portion of the Termination Price in excess of par, and to the extent received in respect of such termination, to pay any such amounts to the Holders of the Class CE Certificates.  

(c)        Notice of the liquidation of the Certificates shall be given promptly by the Securities Administrator by letter to the Certificateholders mailed (a) in the event such notice is given in connection with the purchase of the Mortgage Loans and each REO Property by the Master Servicer, not earlier than the 15th day and not later than the 25th day of the month next preceding the month of the final distribution on the Certificates or (b) otherwise during the month of such final distribution on or before the Determination Date in such month, in each case specifying (i) the Distribution Date upon which the Trust Fund will terminate and the final payment in respect of the REMIC I Regular Interests or the Certificates will be made upon presentation and surrender of the related Certificates at the office of the Securities Administrator therein
designated, (ii) the amount of any such final payment, (iii) that no interest shall accrue in respect of the REMIC I Regular Interests or the Certificates from and after the Interest Accrual Period relating to the final Distribution Date therefor and (iv) that the Record Date otherwise applicable to such Distribution Date is not applicable, payments being made only upon presentation and surrender of the Certificates at the office of the Securities Administrator. In the event such notice is given in connection with the purchase of all of the Mortgage Loans and each REO Property remaining in REMIC I by the Master Servicer, the Master Servicer shall deliver to the Securities Administrator for deposit in the Distribution Account not later than the Business Day prior to the Distribution Date on which the final distribution on the Certificates an amount in immediately available funds equal to the above-described Termination Price. The Securities Administrator shall remit to the Servicer,
the Master Servicer, the Trustee and the Custodian from such funds deposited in the Distribution Account (i) any amounts which the Servicer would be permitted to withdraw and retain from the Collection Account pursuant to Section 3.09 as if such funds had been deposited therein (including all unpaid Servicing Fees, Master Servicing Fees and all outstanding P&I Advances and Servicing Advances) and (ii) any other amounts otherwise payable by the Securities Administrator to the Master Servicer, the Trustee, the Custodian and the Servicer from amounts on deposit in the Distribution Account pursuant to the terms of this Agreement prior to making any final distributions pursuant to Section 10.01(d) below. Upon certification to the Trustee by the Securities Administrator of the making of such final deposit, the Trustee shall promptly release or cause to be released to the Master Servicer the Mortgage Files for the remaining Mortgage Loans, and Trustee shall execute all
assignments, endorsements and other instruments delivered to it and necessary to effectuate such transfer.

(d)        Upon presentation of the Certificates by the Certificateholders on the final Distribution Date, the Securities Administrator shall distribute to each Certificateholder so presenting and surrendering its Certificates the amount otherwise distributable on such Distribution Date in accordance with Section 5.01 in respect of the Certificates so presented and surrendered. Any funds not distributed to any Holder or Holders of Certificates being retired on such Distribution Date because of the failure of such Holder or Holders to tender their Certificates shall, on such date, be set aside and held in trust and credited to the account of the appropriate non-tendering Holder or Holders. If any Certificates as to which notice has been given pursuant to this Section 10.01 shall not have been surrendered for cancellation within six 

 

months after the time specified in such notice, the Securities Administrator shall mail a second notice to the remaining non-tendering Certificateholders to surrender their Certificates for cancellation in order to receive the final distribution with respect thereto. If within one year after the second notice all such Certificates shall not have been surrendered for cancellation, the Securities Administrator shall, directly or through an agent, mail a final notice to the remaining non-tendering Certificateholders concerning surrender of their Certificates. The costs and expenses of maintaining the funds in trust and of contacting such Certificateholders shall be paid out of the assets remaining in the trust funds. If within one (1) year after the final notice any such Certificates shall not have been surrendered for cancellation, the Securities Administrator shall pay to the Depositor all such amounts, and
all rights of non-tendering Certificateholders in or to such amounts shall thereupon cease. No interest shall accrue or be payable to any Certificateholder on any amount held in trust by the Securities Administrator as a result of such Certificateholder’s failure to surrender its Certificate(s) on the final Distribution Date for final payment thereof in accordance with this Section 10.01. Any such amounts held in trust by the Securities Administrator shall be held uninvested in an Eligible Account.

	
            SECTION 10.02.
 	
            Additional Termination Requirements.
 

(a)        In the event that the Terminator purchases all the Mortgage Loans and each REO Property or the final payment on or other liquidation of the last Mortgage Loan or REO Property remaining in REMIC I pursuant to Section 10.01, the Trust Fund shall be terminated in accordance with the following additional requirements:

(i)         The Trustee shall specify the first day in the 90-day liquidation period in a statement attached to each Trust REMIC’s final Tax Return pursuant to Treasury regulation Section 1.860F-1 and shall satisfy all requirements of a qualified liquidation under Section 860F of the Code and any regulations thereunder, as evidenced by an Opinion of Counsel obtained by and at the expense of the Terminator;

(ii)         During such 90-day liquidation period and, at or prior to the time of making of the final payment on the Certificates, the Trustee shall sell all of the assets of REMIC I to the Terminator for cash; and

(iii)        At the time of the making of the final payment on the Certificates, the Securities Administrator shall distribute or credit, or cause to be distributed or credited, to the Holders of the Residual Certificates all cash on hand in the Trust Fund (other than cash retained to meet claims), and the Trust Fund shall terminate at that time.

(b)        At the expense of the Terminator (or, if the Trust Fund is being terminated as a result of the occurrence of the event described in clause (ii) of the first paragraph of Section 10.01, at the expense of the Trust Fund), the Terminator shall prepare or cause to be prepared the documentation required in connection with the adoption of a plan of liquidation of each Trust REMIC pursuant to this Section 10.02.

(c)        By their acceptance of Certificates, the Holders thereof hereby agree to authorize the Trustee to specify the 90-day liquidation period for each Trust REMIC, which authorization shall be binding upon all successor Certificateholders.

 

 

ARTICLE XI

 

REMIC PROVISIONS

	
            SECTION 11.01.
 	
            REMIC Administration.
 

(a)        The Trustee shall elect to treat each Trust REMIC as a REMIC under the Code and, if necessary, under applicable state law.  Each such election will be made by the Securities Administrator on Form 1066 or other appropriate federal tax or information return or any appropriate state return for the taxable year ending on the last day of the calendar year in which the Certificates are issued. For the purposes of the REMIC election in respect of REMIC I, the REMIC I Regular Interests shall be designated as the “regular interests” in REMIC I and the Class R-I Interest shall be designated as the “residual interest” in REMIC I.  For the purposes of the REMIC election in respect of REMIC II, the REMIC II Regular Interests shall be designated as the “regular interests” in REMIC II and the Class R-II Interest shall be
designated as the “residual interest” in REMIC II.  The Class A Certificates, the Mezzanine Certificates, the Class B Interests, the Class P Interest, Class IO Interest and the Class CE Interest (exclusive of any right to receive payments from the Reserve Fund) shall be designated as the “regular interests” in REMIC III and the Class R-III Interest shall be designated as the “residual interest” in REMIC III. The Class CE Certificates shall be designated as the “regular interests” in REMIC IV and the Class R-IV Interest shall be designated as the “residual interest” in REMIC IV.  The Class P Certificates shall be designated as the “regular interests” in REMIC V and the Class R-V Interest shall be designated as the “residual interest” in REMIC V.  The Class IO Interest shall be designated as the “regular interests” in REMIC VI and the Class R-VI Interest shall be designated as the “residual
interest” in REMIC VI.  The Class B-1 Certificates shall be designated as the “regular interests” in REMIC VII and the Class R-VII Interest shall be designated as the “residual interest” in REMIC VII.  The Class B-2 Certificates shall be designated as the “regular interests” in REMIC VIII and the Class R-VIII Interest shall be designated as the “residual interest” in REMIC VIII.  The Class B-3 Certificates shall be designated as the “regular interests” in REMIC IX and the Class R-IX Interest shall be designated as the “residual interest” in REMIC IX.  The Class B-4 Certificates shall be designated as the “regular interests” in REMIC X and the Class R-X Interest shall be designated as the “residual interest” in REMIC X.  The Class B-5 Certificates shall be designated as the “regular interests” in REMIC XI and the Class R-XI Interest shall be designated as the “residual interest” in
REMIC XI.  The Trustee shall not permit the creation of any “interests” in each Trust REMIC (within the meaning of Section 860G of the Code) other than the REMIC I Regular Interests, REMIC II Regular Interests, Class B Interests, Class CE Interest, Class P Interest, Class IO Interest and the interests represented by the Certificates.

(b)        The Closing Date is hereby designated as the “Startup Day” of each Trust REMIC within the meaning of Section 860G(a)(9) of the Code.

(c)        The Securities Administrator shall be reimbursed for any and all expenses relating to any tax audit of the Trust Fund (including, but not limited to, any professional fees or any administrative or judicial proceedings with respect to each Trust REMIC that involve the Internal Revenue Service or state tax authorities), including the expense of obtaining any tax related Opinion of Counsel except as specified herein. The Securities Administrator, as agent for 

 

each Trust REMIC’s tax matters person shall (i) act on behalf of the Trust Fund in relation to any tax matter or controversy involving any Trust REMIC and (ii) represent the Trust Fund in any administrative or judicial proceeding relating to an examination or audit by any governmental taxing authority with respect thereto. The holder of the largest Percentage Interest of each Class of Residual Certificates shall be designated, in the manner provided under Treasury regulations section 1.860F-4(d) and Treasury regulations section 301.6231(a)(7)-1, as the tax matters person of the related REMIC created hereunder. By their acceptance thereof, the holder of the largest Percentage Interest of the Residual Certificates hereby agrees to irrevocably appoint the Securities Administrator or an Affiliate as its agent to perform all of the duties of the tax matters person for the Trust Fund.

(d)        The Securities Administrator shall prepare and file and the Trustee shall sign all of the Tax Returns in respect of each REMIC created hereunder. The expenses of preparing and filing such returns shall be borne by the Securities Administrator without any right of reimbursement therefor.

(e)        The Securities Administrator shall perform on behalf of each Trust REMIC all reporting and other tax compliance duties that are the responsibility of such REMIC under the Code, the REMIC Provisions or other compliance guidance issued by the Internal Revenue Service or any state or local taxing authority. Among its other duties, as required by the Code, the REMIC Provisions or other such compliance guidance, the Securities Administrator shall provide (i) to any Transferor of a Residual Certificate such information as is necessary for the application of any tax relating to the transfer of a Residual Certificate to any Person who is not a Permitted Transferee upon receipt of additional reasonable compensation, (ii) to the Certificateholders such information or reports as are required by the Code or the REMIC Provisions including reports
relating to interest, original issue discount and market discount or premium (using the Prepayment Assumption as required) and (iii) to the Internal Revenue Service the name, title, address and telephone number of the person who will serve as the representative of each Trust REMIC. The Depositor shall provide or cause to be provided to the Securities Administrator, within ten (10) days after the Closing Date, all information or data that the Securities Administrator reasonably determines to be relevant for tax purposes as to the valuations and issue prices of the Certificates, including, without limitation, the price, yield, prepayment assumption and projected cash flow of the Certificates.

(f)         To the extent in the control of the Trustee or the Securities Administrator, each such Person (i) shall take such action and shall cause each REMIC created hereunder to take such action as shall be necessary to create or maintain the status thereof as a REMIC under the REMIC Provisions, (ii) shall not take any action, cause the Trust Fund to take any action or fail to take (or fail to cause to be taken) any action that, under the REMIC Provisions, if taken or not taken, as the case may be, could (A) endanger the status of each Trust REMIC as a REMIC or (B) result in the imposition of a tax upon the Trust Fund (including but not limited to the tax on prohibited transactions as defined in Section 860F(a)(2) of the Code and the tax on contributions to a REMIC set forth in Section 860G(d) of the Code) (either such event, an
“Adverse REMIC Event”) unless such action or inaction is permitted under this Agreement or the Trustee and the Securities Administrator have received an Opinion of Counsel, addressed to the them (at the expense of the party seeking to take such action but in no event at the expense of the Trustee or the Securities Administrator) to the effect that the contemplated action will not, 

 

with respect to any Trust REMIC, endanger such status or result in the imposition of such a tax, nor (iii) shall the Securities Administrator take or fail to take any action (whether or not authorized hereunder) as to which the Trustee has advised it in writing that it has received an Opinion of Counsel to the effect that an Adverse REMIC Event could occur with respect to such action; provided that the Securities Administrator may conclusively rely on such Opinion of Counsel and shall incur no liability for its action or failure to act in accordance with such Opinion of Counsel. In addition, prior to taking any action with respect to any Trust REMIC or the respective assets of each, or causing any Trust REMIC to take any action, which is not contemplated under the terms of this Agreement, the Securities Administrator will consult with the Trustee or its designee, in writing, with respect to whether such
action could cause an Adverse REMIC Event to occur with respect to any Trust REMIC, and the Securities Administrator shall not take any such action or cause any Trust REMIC to take any such action as to which the Trustee has advised it in writing that an Adverse REMIC Event could occur. The Trustee may consult with counsel to make such written advice, and the cost of same shall be home by the party seeking to take the action not permitted by this Agreement, but in no event shall such cost be an expense of the Trustee.

(g)        In the event that any tax is imposed on “prohibited transactions” of any REMIC created hereunder as defined in Section 860F(a)(2) of the Code, on the “net income from foreclosure property” of such REMIC as defined in Section 860G(c) of the Code, on any contributions to any such REMIC after the Startup Day therefor pursuant to Section 860G(d) of the Code, or any other tax is imposed by the Code or any applicable provisions of state or local tax laws, such tax shall be charged (i) to the Trustee pursuant to Section 11.03, if such tax arises out of or results from a breach by the Trustee of any of its obligations under this Article XI, (ii) to the Securities Administrator pursuant to Section 11.03, if such tax arises out of or results from a breach by the Securities Administrator of any of its
obligations under this Article XI, (iii) to the Master Servicer pursuant to Section 11.03, if such tax arises out of or results from a breach by the Master Servicer of any of its obligations under Article IV or under this Article XI, (iv) to the Servicer pursuant to Section 11.03, if such tax arises out of or results from a breach by the Servicer of any of its obligations under Article III or under this Article XI, or (v) in all other cases, against amounts on deposit in the Distribution Account and shall be paid by withdrawal therefrom.

(h)        The Securities Administrator shall, for federal income tax purposes, maintain books and records with respect to each Trust REMIC on a calendar year and on an accrual basis.

(i)         Following the Startup Day, neither the Securities Administrator nor the Trustee shall accept any contributions of assets to any Trust REMIC other than in connection with any Qualified Substitute Mortgage Loan delivered in accordance with Section 2.03 unless it shall have received an Opinion of Counsel to the effect that the inclusion of such assets in the Trust Fund will not cause the related REMIC to fail to qualify as a REMIC at any time that any Certificates are outstanding or subject such REMIC to any tax under the REMIC Provisions or other applicable provisions of federal, state and local law or ordinances.

(j)         Neither the Trustee nor the Securities Administrator shall knowingly enter into any arrangement by which any Trust REMIC will receive a fee or other compensation for 

 

services nor permit either REMIC to receive any income from assets other than “qualified mortgages” as defined in Section 860G(a)(3) of the Code or “permitted investments” as defined in Section 860G(a)(5) of the Code.

(k)        The Securities Administrator shall apply for an employer identification number with the Internal Revenue Service via a Form SS-4 or other comparable method for each REMIC. In connection with the foregoing, the Securities Administrator shall provide the name and address of the person who can be contacted to obtain information required to be reported to the holders of Regular Interests in each REMIC as required by IRS Form 8811.

	
            SECTION 11.02.
 	
            Prohibited Transactions and Activities.
 

None of the Depositor, the Servicer, the Securities Administrator, the Master Servicer  or the Trustee shall sell, dispose of or substitute for any of the Mortgage Loans (except in connection with (i) the foreclosure of a Mortgage Loan, including but not limited to, the acquisition or sale of a Mortgaged Property acquired by deed in lieu of foreclosure, (ii) the bankruptcy of REMIC I, (iii) the termination of REMIC I pursuant to Article X of this Agreement, (iv) a substitution pursuant to Article II of this Agreement or (v) a purchase of Mortgage Loans pursuant to Article II of this Agreement), nor acquire any assets for any Trust REMIC (other than REO Property acquired in respect of a defaulted Mortgage Loan), nor sell or dispose of any investments in the Collection Account or the Distribution Account for gain, nor accept any contributions to any Trust REMIC after the Closing Date (other
than a Qualified Substitute Mortgage Loan delivered in accordance with Section 2.03), unless it has received an Opinion of Counsel, addressed to the Trustee and the Securities Administrator (at the expense of the party seeking to cause such sale, disposition, substitution, acquisition or contribution but in no event at the expense of the Trustee) that such sale, disposition, substitution, acquisition or contribution will not (a) affect adversely the status of any Trust REMIC as a REMIC or (b) cause any Trust REMIC to be subject to a tax on “prohibited transactions” or “contributions” pursuant to the REMIC Provisions.

	
            SECTION 11.03.
 	
            Indemnification.
 

(a)        The Trustee agrees to be liable for any taxes and costs incurred by the Trust Fund, the Depositor, the Master Servicer, the Securities Administrator or the Servicer including, without limitation, any reasonable attorneys fees imposed on or incurred by the Trust Fund, the Depositor, the Master Servicer, the Securities Administrator or the Servicer as a result of the Trustee’s failure to perform its covenants set forth in this Article XI in accordance with the standard of care of the Trustee set forth in this Agreement.

(b)        The Servicer agrees to indemnify the Trust Fund, the Depositor, the Master Servicer, the Securities Administrator and the Trustee for any taxes and costs including, without limitation, any reasonable attorneys’ fees imposed on or incurred by the Trust Fund, the Depositor, the Master Servicer, the Securities Administrator or the Trustee, as a result of the Servicer’s failure to perform its covenants set forth in Article III in accordance with the standard of care of the Servicer set forth in this Agreement.

 

 

(c)        The Master Servicer agrees to indemnify the Trust Fund, the Depositor, the Servicer and the Trustee for any taxes and costs including, without limitation, any reasonable attorneys’ fees imposed on or incurred by the Trust Fund, the Depositor, the Servicer or the Trustee, as a result of the Master Servicer’s failure to perform its covenants set forth in Article IV in accordance with the standard of care of the Master Servicer set forth in this Agreement.

(d)        The Securities Administrator agrees to be liable for any taxes and costs incurred by the Trust Fund, the Depositor, the Servicer or the Trustee including, without limitation, any reasonable attorneys’ fees imposed on or incurred by the Trust Fund, the Depositor, the Servicer or the Trustee as a result of the Securities Administrator’s failure to perform its covenants set forth in this Article XI in accordance with the standard of care of the Securities Administrator set forth in this Agreement.

 

 

ARTICLE XII

 

MISCELLANEOUS PROVISIONS

	
            SECTION 12.01.
 	
            Amendment.
 

This Agreement may be amended from time to time by the Depositor, the Servicer, the Master Servicer, the Securities Administrator and the Trustee, but without the consent of any of the Certificateholders, (i) to cure any ambiguity or defect, (ii) to correct, modify or supplement any provisions herein (including to give effect to the expectations of Certificateholders), or (iii) to make any other provisions with respect to matters or questions arising under this Agreement which shall not be inconsistent with the provisions of this Agreement and that such action shall not, as evidenced by an Opinion of Counsel delivered to the Trustee, adversely affect in any material respect the interests of any Certificateholder (or the Swap Provider unless the Swap Provider shall have consented to the amendment); provided that any such amendment shall be deemed not to adversely affect in any material
respect the interests of the Certificateholders and no such Opinion of Counsel shall be required if the Person requesting such amendment obtains a letter from each Rating Agency stating that such amendment would not result in the downgrading or withdrawal of the respective ratings then assigned to the Certificates. No amendment shall be deemed to adversely affect in any material respect the interests of any Certificateholder who shall have consented thereto, and no Opinion of Counsel shall be required to address the effect of any such amendment on any such consenting Certificateholder.

This Agreement may also be amended from time to time by the Depositor, the Servicer, the Master Servicer, the Securities Administrator  and the Trustee with the consent of the Holders of Certificates entitled to at least 66% of the Voting Rights for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement or of modifying in any manner the rights of the Holders of Certificates (or if such amendment modifies the rights of the Swap Provider hereunder, with the consent of the Swap Provider); provided, however, that no such amendment shall (i) reduce in any manner the amount of, or delay the timing of, payments received on Mortgage Loans which are required to be distributed on any Certificate without the consent of the Holder of such Certificate, (ii) adversely affect in any material respect the interests of the Holders of any
Class of Certificates in a manner, other than as described in (i), without the consent of the Holders of Certificates of such Class evidencing at least 66% of the Voting Rights allocated to such Class, or (iii) modify the consents required by the immediately preceding clauses (i) and (ii) without the consent of the Holders of all Certificates then outstanding. Notwithstanding any other provision of this Agreement, for purposes of the giving or withholding of consents pursuant to this Section 12.01, Certificates registered in the name of the Depositor or the Servicer or any Affiliate thereof shall be entitled to Voting Rights with respect to matters affecting such Certificates. Without limiting the generality of the foregoing, any amendment to this Agreement required in connection with the compliance with or the clarification of any reporting obligations described in Section 5.06 hereof shall not require the consent of any Certificateholder and without the need for any
Opinion of Counsel or Rating Agency confirmation.

 

 

Notwithstanding any contrary provision of this Agreement, the Trustee shall not consent to any amendment to this Agreement unless it shall have first received an Opinion of Counsel to the effect that such amendment is permitted hereunder and will not result in the imposition of any tax on any Trust REMIC pursuant to the REMIC Provisions or cause any Trust REMIC to fail to qualify as a REMIC at any time that any Certificates are outstanding and that such amendment is authorized or permitted by this Agreement.  

Promptly after the execution of any such amendment the Trustee shall furnish a copy of such amendment to each Certificateholder.

It shall not be necessary for the consent of Certificateholders under this Section 12.01 to approve the particular form of any proposed amendment, but it shall be sufficient if such consent shall approve the substance thereof. The manner of obtaining such consents and of evidencing the authorization of the execution thereof by Certificateholders shall be subject to such reasonable regulations as the Trustee may prescribe.

The cost of any Opinion of Counsel to be delivered pursuant to this Section 12.01 shall be borne by the Person seeking the related amendment, but in no event shall such Opinion of Counsel be an expense of the Trustee.

The Trustee may, but shall not be obligated to enter into any amendment pursuant to this Section that affects its rights, duties and immunities under this Agreement or otherwise.

	
            SECTION 12.02.
 	
            Recordation of Agreement; Counterparts.
 

To the extent permitted by applicable law, this Agreement is subject to recordation in all appropriate public offices for real property records in all the counties or other comparable jurisdictions in which any or all of the properties subject to the Mortgages are situated, and in any other appropriate public recording office or elsewhere, such recordation to be effected by the Depositor at the expense of the Certificateholders, but only upon direction of the Trustee accompanied by an Opinion of Counsel to the effect that such recordation materially and beneficially affects the interests of the Certificateholders.

For the purpose of facilitating the recordation of this Agreement as herein provided and for other purposes, this Agreement may be executed simultaneously in any number of counterparts, each of which counterparts shall be deemed to be an original, and such counterparts shall constitute but one and the same instrument.

	
            SECTION 12.03.
 	
            Limitation on Rights of Certificateholders.
 

The death or incapacity of any Certificateholder shall not operate to terminate this Agreement or the Trust Fund, nor entitle such Certificateholder’s legal representatives or heirs to claim an accounting or to take any action or proceeding in any court for a partition or winding up of the Trust Fund, nor otherwise affect the rights, obligations and liabilities of the parties hereto or any of them.

No Certificateholder shall have any right to vote (except as expressly provided for herein) or in any manner otherwise control the operation and management of the Trust Fund, or 

 

the obligations of the parties hereto, nor shall anything herein set forth, or contained in the terms of any of the Certificates, be construed so as to constitute the Certificateholders from time to time as partners or members of an association; nor shall any Certificateholder be under any liability to any third person by reason of any action taken by the parties to this Agreement pursuant to any provision hereof.

No Certificateholder shall have any right by virtue of any provision of this Agreement to institute any suit, action or proceeding in equity or at law upon or under or with respect to this Agreement, unless such Holder previously shall have given to the Trustee a written notice of default and of the continuance thereof, as hereinbefore provided, and unless also the Holders of Certificates entitled to at least 25% of the Voting Rights shall have made written request upon the Trustee to institute such action, suit or proceeding in its own name as Trustee hereunder and shall have offered to the Trustee such reasonable indemnity as it may require against the costs, expenses and liabilities to be incurred therein or thereby, and the Trustee, for 15 days after its receipt of such notice, request and offer of indemnity, shall have neglected or refused to institute any such action, suit or
proceeding. It is understood and intended, and expressly covenanted by each Certificateholder with every other Certificateholder. and the Trustee, that no one or more Holders of Certificates shall have any right in any manner whatsoever by virtue of any provision of this Agreement to affect, disturb or prejudice the rights of the Holders of any other of such Certificates, or to obtain or seek to obtain priority over or preference to any other such Holder, or to enforce any right under this Agreement, except in the manner herein provided and for the equal, ratable and common benefit of all Certificateholders. For the protection and enforcement of the provisions of this Section, each and every Certificateholder and the Trustee shall be entitled to such relief as can be given either at law or in equity.

	
            SECTION 12.04.
 	
            Governing Law.
 

This Agreement shall be construed in accordance with the laws of the State of New York and the obligations, rights and remedies of the parties hereunder shall be determined in accordance with such laws without regard to conflicts of laws principles thereof other than Section 5-1401 of the New York General Obligations Law which shall govern.

	
            SECTION 12.05.
 	
            Notices.
 

All directions, demands and notices hereunder shall be in writing and shall be deemed to have been duly given when received if sent by facsimile, receipt confirmed, if personally delivered at or mailed by first class mail, postage prepaid, or by express delivery service or delivered in any other manner specified herein, to (a) in the case of the Depositor, ACE Securities Corp., AMACAR GROUP, 6525 Morrison Boulevard, Suite 318, Charlotte, North Carolina 28211, Attention: Juliana Johnson (telecopy number: (704) 365-1362), or such other address or telecopy number as may hereafter be furnished to the Servicer, the Master Servicer, the Securities Administrator and the Trustee in writing by the Depositor, (b) in the case of the Servicer, Litton Loan Servicing LP, 4828 Loop Central Drive, Houston, Texas 77081, Attention: Janice McClure (telecopy number: (713) 960-0539)), or such other address or
telecopy number as may hereafter be furnished to the Trustee, the Master Servicer, the Securities Administrator and the Depositor in writing by the Servicer, (c) in the case of the Master Servicer 

 

and the Securities Administrator, P.O. Box 98, Columbia, Maryland 21046 and for overnight delivery to 9062 Old Annapolis Road, Columbia, Maryland 21045, Attention: Ace Securities Corp., 2005-AG1 (telecopy number: (410) 715-2380), or such other address or telecopy number as may hereafter be furnished to the Trustee, the Depositor and the Servicer in writing by the Master Servicer or the Securities Administrator and (d) in the case of the Trustee, at the Corporate Trust Office or such other address or telecopy number as the Trustee may hereafter be furnish to the Servicer, the Master Servicer, the Securities Administrator and the Depositor in writing by the Trustee. Any notice required or permitted to be given to a Certificateholder shall be given by first class mail, postage prepaid, at the address of such Holder as shown in the Certificate Register. Any notice so mailed within the time prescribed in this
Agreement shall be conclusively presumed to have been duly given when mailed, whether or not the Certificateholder receives such notice. A copy of any notice required to be telecopied hereunder also shall be mailed to the appropriate party in the manner set forth above.

	
            SECTION 12.06.
 	
            Severability of Provisions.
 

If any one or more of the covenants, agreements, provisions or terms of this Agreement shall be for any reason whatsoever held invalid, then such covenants, agreements, provisions or terms shall be deemed severable from the remaining covenants, agreements, provisions or terms of this Agreement and shall in no way affect the validity or enforceability of the other provisions of this Agreement or of the Certificates or the rights of the Holders thereof.

	
            SECTION 12.07.
 	
            Notice to Rating Agencies.
 

The Trustee shall use its best efforts promptly to provide notice to the Rating Agencies with respect to each of the following of which a Responsible Officer has actual knowledge:

	
            1.
 	
            Any material change or amendment to this Agreement;
 

2.            The occurrence of any Servicer Event of Default or Master Servicer Event of Default that has not been cured or waived;

3.            The resignation or termination of the Servicer, the Master Servicer or the Trustee;

4.            The repurchase or substitution of Mortgage Loans pursuant to or as contemplated by Section 2.03;

	
            5.
 	
            The final payment to the Holders of any Class of Certificates;
 
	
            6.
 	
            Any change in the location of the Distribution Account; and
 	
             

7.             Any event that would result in the inability of the Trustee as successor servicer to make advances regarding delinquent Mortgage Loans.

In addition, the Securities Administrator shall promptly make available to each Rating Agency copies of each report to Certificateholders described in Section 5.02.

 

 

The Servicer shall make available to each Rating Agency copies of the following:

	
            8.
 	
            Each annual statement as to compliance described in Section 3.17; and
 

9.             Each annual independent public accountants’ servicing report described in Section 3.18.

Any such notice pursuant to this Section 12.07 shall be in writing and shall be deemed to have been duly given if personally delivered at or mailed by first class mail, postage prepaid, or by express delivery service to Standard & Poor’s, a division of the McGraw-Hill Companies, Inc., 55 Water Street, New York, New York 10041; and to Moody’s Investors Service, Inc., 99 Church Street, New York, New York 10007 or such other addresses as the Rating Agencies may designate in writing to the parties hereto.

	
            SECTION 12.08.
 	
            Article and Section References.
 

All article and section references used in this Agreement, unless otherwise provided, are to articles and sections in this Agreement.

	
            SECTION 12.09.
 	
            Grant of Security Interest.
 

It is the express intent of the parties hereto that the conveyance of the Mortgage Loans by the Depositor to the Trustee, on behalf of the Trust and for the benefit of the Certificateholders, be, and be construed as, a sale of the Mortgage Loans by the Depositor and not a pledge of the Mortgage Loans to secure a debt or other obligation of the Depositor. However, in the event that, notwithstanding the aforementioned intent of the parties, the Mortgage Loans are held to be property of the Depositor, then, (a) it is the express intent of the parties that such conveyance be deemed a pledge of the Mortgage Loans by the Depositor to the Trustee, on behalf of the Trust and for the benefit of the Certificateholders, to secure a debt or other obligation of the Depositor and (b)(1) this Agreement shall also be deemed to be a security agreement within the meaning of Articles 8 and 9 of the Uniform
Commercial Code as in effect from time to time in the State of New York; (2) the conveyance provided for in Section 2.01 shall be deemed to be a grant by the Depositor to the Trustee, on behalf of the Trust and for the benefit of the Certificateholders, of a security interest in all of the Depositor’s right, title and interest in and to the Mortgage Loans and all amounts payable to the holders of the Mortgage Loans in accordance with the terms thereof and all proceeds of the conversion, voluntary or involuntary, of the foregoing into cash, instruments, securities or other property, including without limitation all amounts, other than investment earnings, from time to time held or invested in the Collection Account and the Distribution Account, whether in the form of cash, instruments, securities or other property; (3) the obligations secured by such security agreement shall be deemed to be all of the Depositor’s obligations under this Agreement, including the obligation
to provide to the Certificateholders the benefits of this Agreement relating to the Mortgage Loans and the Trust Fund; and (4) notifications to persons holding such property, and acknowledgments, receipts or confirmations from persons holding such property, shall be deemed notifications to, or acknowledgments, receipts or confirmations from, financial intermediaries, bailees or agents (as applicable) of the Trustee for the purpose of perfecting such security interest under applicable law. Accordingly, the Depositor hereby grants to the Trustee, 

 

on behalf of the Trust and for the benefit of the Certificateholders, a security interest in the Mortgage Loans and all other property described in clause (2) of the preceding sentence, for the purpose of securing to the Trustee the performance by the Depositor of the obligations described in clause (3) of the preceding sentence. Notwithstanding the foregoing, the parties hereto intend the conveyance pursuant to Section 2.01 to be a true, absolute and unconditional sale of the Mortgage Loans and assets constituting the Trust Fund by the Depositor to the Trustee, on behalf of the Trust and for the benefit of the Certificateholders.

	
            SECTION 12.10.
 	
            Survival of Indemnification.
 

Any and all indemnities to be provided by any party to this Agreement shall survive the termination and resignation of any party hereto and the termination of this Agreement.

 

 

IN WITNESS WHEREOF, the Depositor, the Servicer, the Master Servicer, the Securities Administrator and the Trustee have caused their names to be signed hereto by their respective officers thereunto duly authorized, in each case as of the day and year first above written.

 

	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            ACE SECURITIES CORP.,
 as Depositor
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
/s/ 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Name:
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Title:
 	
             
 
															

 

	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
/s/ 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Name:
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Title:
 	
             
 
															

 

	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            LITTON LOAN SERVICING LP
 as Servicer
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
/s/ 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Name:
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Title:
 	
             
 
															

 

	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            HSBC BANK USA, NATIONAL
 ASSOCIATION
 not in its individual capacity but solely as
 Trustee
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
/s/ 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Name:
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Title:
 	
             
 
															

 

 

 

 

	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            WELLS FARGO BANK, NATIONAL
 ASSOCIATION
 as Master Servicer and Securities Administrator
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
/s/ 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Name:
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Title:
 	
             
 
															

 

	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Acknowledged and Agreed for purposes of
 Section 9.05:
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            DB STRUCTURED PRODUCTS, INC.
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
/s/ 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Name:
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Title:
 	
             
 
															

 

	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
/s/ 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Name:
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Title:
 	
             
 
															

 

 

 

 

 

	
            STATE OF _____________
 	
            )
 	
             
 
	
             
 	
            )
 	
            ss.:
 
	
            COUNTY OF ___________
 	
            )
 	
             
 

 

On the ___ day of October 2005, before me, a notary public in and for said State, personally appeared _____________________ known to me to be a _____________________ of ACE Securities Corp., one of the corporations that executed the within instrument, and also known to me to be the person who executed it on behalf of said corporation, and acknowledged to me that such corporation executed the within instrument.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written.

 

	
             
 	
            
 
 
 
	
             
 	
            Notary Public
 

 

	
            [Notarial Seal]       
 	
            My commission expires
 

 

 

 

 

 

	
            STATE OF _____________
 	
            )
 	
             
 
	
             
 	
            )
 	
            ss.:
 
	
            COUNTY OF ___________
 	
            )
 	
             
 

 

On the ___ day of October 2005, before me, a notary public in and for said State, personally appeared _____________________ known to me to be a _____________________ of ACE Securities Corp., one of the corporations that executed the within instrument, and also known to me to be the person who executed it on behalf of said corporation, and acknowledged to me that such corporation executed the within instrument.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written.

 

	
             
 	
            
 
 
 
	
             
 	
            Notary Public
 

 

	
            [Notarial Seal]       
 	
            My commission expires
 

 

 

 

 

	
            STATE OF _____________
 	
            )
 	
             
 
	
             
 	
            )
 	
            ss.:
 
	
            COUNTY OF ___________
 	
            )
 	
             
 

 

On the ___ day of October 2005, before me, a notary public in and for said State, personally appeared _____________________ known to me to be a _____________________ of Litton Loan Servicing LP, one of the entities that executed the within instrument, and also known to me to be the person who executed it on behalf of said entity, and acknowledged to me that such entity executed the within instrument.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written.

 

	
             
 	
            
 
 
 
	
             
 	
            Notary Public
 

 

	
            [Notarial Seal]       
 	
            My commission expires
 

 

 

 

 

	
            STATE OF _____________
 	
            )
 	
             
 
	
             
 	
            )
 	
            ss.:
 
	
            COUNTY OF ___________
 	
            )
 	
             
 

 

On the ___ day of October 2005, before me, a notary public in and for said State, personally appeared _____________________ known to me to be a _____________________ of Wells Fargo Bank, National Association, one of the national banking associations that executed the within instrument, and also known to me to be the person who executed it on behalf of said national banking association, and acknowledged to me that such national banking association executed the within instrument.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written.

 

	
             
 	
            
 
 
 
	
             
 	
            Notary Public
 

 

	
            [Notarial Seal]       
 	
            My commission expires
 

 

 

 

 

 

	
            STATE OF _____________
 	
            )
 	
             
 
	
             
 	
            )
 	
            ss.:
 
	
            COUNTY OF ___________
 	
            )
 	
             
 

 

On the ___ day of October 2005, before me, a notary public in and for said State, personally appeared _____________________ known to me to be a _____________________ of HSBC Bank USA, National Association, one of the national banking associations that executed the within instrument, and also known to me to be the person who executed it on behalf of said national banking association, and acknowledged to me that such national banking association executed the within instrument.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written.

 

	
             
 	
            
 
 
 
	
             
 	
            Notary Public
 

 

	
            [Notarial Seal]       
 	
            My commission expires
 

 

 

 

EXHIBIT A-1

FORM OF CLASS A-[1A] [1B1][1B2][2A][2B][2C][2D] CERTIFICATE

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST” IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986 (THE “CODE”).

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

PRIOR TO THE TERMINATION OF THE SUPPLEMENTAL INTEREST TRUST, ANY PERSON ACQUIRING A CERTIFICATE DIRECTLY OR INDIRECTLY BY, ON BEHALF OF, OR WITH PLAN ASSETS OF AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, SHALL BE DEEMED TO HAVE MADE THE REPRESENTATIONS IN SECTION 6.02(c) OF THE POOLING AND SERVICING AGREEMENT.

 

 

 

	
            Series 2005-AG1,  Class A-[1A][1B1][1B2][2A][2B][2C][2D]

 
  	
             
  	
            Aggregate  Certificate Principal Balance of the Class A-[1A][1B1][1B2][2A][2B][2C][2D] Certificates  as of the Issue Date:   $_____________
  
	
            Pass-Through Rate: Variable
 	
             
 	
            Denomination:  $____________
 
	
            Date of Pooling and Servicing Agreement and Cut-off Date: October 1, 2005
 	
             
 	
            Master Servicer: Wells Fargo Bank, N.A.
 
	
            First Distribution Date: November 25, 2005
 	
             
 	
            Trustee: HSBC Bank USA, National Association
 
	
            No.__
 	
             
 	
            Issue Date: October 28, 2005
 
	
             
 	
             
 	
            CUSIP:________________
 

 

DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS CERTIFICATE.

ACE SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2005-AG1

ASSET BACKED PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting primarily of a pool of conventional one- to four-family, fixed and adjustable-rate first lien mortgage loans (the “Mortgage Loans”) formed and sold by

ACE SECURITIES CORP.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES CORP., THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE SERVICER, THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

This certifies that ________________ is the registered owner of a Percentage Interest (obtained by dividing the denomination of this Certificate by the aggregate Certificate Principal Balance of the Class A-[1A] [1B1][1B2][2A][2B][2C][2D] Certificates as of the Issue Date) in that certain beneficial ownership interest evidenced by all the Class A[1A] [1B1][1B2][2A][2B][2C][2D] Certificates in REMIC III created pursuant to a Pooling and Servicing Agreement, dated as specified above (the “Agreement”), among ACE Securities Corp., as depositor (hereinafter called the “Depositor”, which term includes any successor entity under the Agreement), Wells Fargo Bank, N.A. as master servicer (the “Master Servicer”) and 

 

securities administrator (the “Securities Administrator”), Litton Loan Servicing LP as servicer (the “Servicer”) and HSBC Bank USA, National Association as trustee (the “Trustee”), a summary of certain of the pertinent provisions of which is set forth hereafter. To the extent not defined herein, the capitalized terms used herein have the meanings assigned in the Agreement. This Certificate is issued under and is subject to the terms, provisions and conditions of the Agreement, to which Agreement the Holder of this Certificate by virtue of the acceptance hereof assents and by which such Holder is bound.

Pursuant to the terms of the Agreement, distributions will be made on the 25th day of each month or, if such 25th day is not a Business Day, the Business Day immediately following such 25th day (a “Distribution Date”), commencing on the First Distribution Date specified above, to the Person in whose name this Certificate is registered on the Business Day immediately preceding such Distribution Date (the “Record Date”), in an amount equal to the product of the Percentage Interest evidenced by this Certificate and the amount required to be distributed to the Holders of Class A-[1A] [1B1][1B2][2A][2B][2C][2D] Certificates on such Distribution Date pursuant to the Agreement.

All distributions to the Holder of this Certificate under the Agreement will be made or caused to be made by the Securities Administrator by wire transfer in immediately available funds to the account of the Person entitled thereto if such Person shall have so notified the Securities Administrator in writing at least five Business Days prior to the Record Date immediately prior to such Distribution Date and is the registered owner of Class A-[1A] [1B1][1B2][2A][2B][2C][2D] Certificates the aggregate initial Certificate Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii) two-thirds of the aggregate initial Certificate Principal Balance of the Class A-[1A] [1B1][1B2][2A][2B][2C][2D] Certificates, or otherwise by check mailed by first class mail to the address of the Person entitled thereto, as such name and address shall appear on the Certificate Register.
Notwithstanding the above, the final distribution on this Certificate will be made after due notice by the Securities Administrator of the pendency of such distribution and only upon presentation and surrender of this Certificate at the office or agency appointed by the Securities Administrator for that purpose as provided in the Agreement.

The Pass-Through Rate applicable to the calculation of interest payable with respect to this Certificate on any Distribution Date shall be a rate per annum equal to the lesser of (i) One-Month LIBOR plus [_____]%, in the case of each Distribution Date through and including the Distribution Date on which the aggregate Scheduled Principal Balance of the Mortgage Loans (and properties acquired in respect thereof) remaining in the Trust Fund is reduced to less than or equal to 10% of the aggregate Scheduled Principal Balance of the Mortgage Loans as of the Cut-off Date, or One-Month LIBOR plus [_____]%, in the case of any Distribution Date thereafter and (ii) the applicable Net WAC Pass-Through Rate for such Distribution Date.

This Certificate is one of a duly authorized issue of Certificates designated as Asset Backed Pass-Through Certificate of the Series specified on the face hereof (herein called the “Certificates”) and representing a Percentage Interest in the Class of Certificates specified on the face hereof equal to the denomination specified on the face hereof divided by the aggregate Certificate Principal Balance of the Class of Certificates specified on the face hereof.

 

 

The Certificates are limited in right of payment to certain collections and recoveries respecting the Mortgage Loans and payments received pursuant to the Swap Agreement, all as more specifically set forth herein and in the Agreement. As provided in the Agreement, withdrawals from the Collection Account and the Distribution Account may be made from time to time for purposes other than distributions to Certificateholders, such purposes including reimbursement of advances made, or certain expenses incurred, with respect to the Mortgage Loans.  

The Agreement permits, with certain exceptions therein provided, the amendment thereof and the modification of the rights and obligations of the Depositor, the Master Servicer, the Trustee, the Securities Administrator, the Servicer and the rights of the Certificateholders under the Agreement at any time by the Depositor, the Master Servicer, the Trustee, the Securities Administrator and the Servicer with the consent of the Holders of Certificates entitled to at least 66% of the Voting Rights.  Any such consent by the Holder of this Certificate shall be conclusive and binding on such Holder and upon all future Holders of this Certificate and of any Certificate issued upon the transfer hereof or in exchange herefor or in lieu hereof whether or not notation of such consent is made upon this Certificate.  The Agreement also permits the amendment thereof, in certain limited circumstances,
without the consent of the Holders of any of the Certificates.

As provided in the Agreement and subject to certain limitations therein set forth, the transfer of this Certificate is registrable in the Certificate Register upon surrender of this Certificate for registration of transfer at the offices or agencies appointed by the Securities Administrator as provided in the Agreement, duly endorsed by, or accompanied by an assignment in the form below or other written instrument of transfer in form satisfactory to the Securities Administrator duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more new Certificates of the same Class in authorized denominations evidencing the same aggregate Percentage Interest will be issued to the designated transferee or transferees.

Prior to the termination of the Supplemental Interest Trust, any transfer of this Certificate to a Plan subject to ERISA or Section 4975 of the Code, any Person acting, directly or indirectly, on behalf of any such Plan or any person using Plan Assets to acquire this Certificate by its acceptance thereof shall be deemed to make the representations in Section 6.02(c) of the Agreement.

The Certificates are issuable in fully registered form only without coupons in Classes and denominations representing Percentage Interests specified in the Agreement. As provided in the Agreement and subject to certain limitations therein set forth, the Certificates are exchangeable for new Certificates of the same Class in authorized denominations evidencing the same aggregate Percentage Interest, as requested by the Holder surrendering the same.

Any transferee of this Certificate shall be deemed to make the representations set forth in Section 6.02(c) of the Agreement.

No service charge will be made for any such registration of transfer or exchange of Certificates, but the Securities Administrator may require payment of a sum sufficient to cover 

 

any tax or other governmental charge that may be imposed in connection with any transfer or exchange of Certificates.

The Depositor, the Master Servicer, the Trustee, the Securities Administrator, the Servicer and any agent of the Depositor, the Master Servicer, the Trustee, the Securities Administrator or the Servicer may treat the Person in whose name this Certificate is registered as the owner hereof for all purposes, and none of the Depositor, the Master Servicer, the Trustee, the Securities Administrator, the Servicer nor any such agent shall be affected by notice to the contrary.

The obligations created by the Agreement and the Trust Fund created thereby shall terminate upon payment to the Certificateholders of all amounts held by the Securities Administrator and required to be paid to them pursuant to the Agreement following the earlier of (i) the final payment or other liquidation (or any advance with respect thereto) of the last Mortgage Loan remaining in REMIC I and (ii) the purchase by the party designated in the Agreement at a price determined as provided in the Agreement from REMIC I of all the Mortgage Loans and all property acquired in respect of such Mortgage Loans. The Agreement permits, but does not require, the party designated in the Agreement to purchase from REMIC I all the Mortgage Loans and all property acquired in respect of any Mortgage Loan at a price determined as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to the aggregate Scheduled Principal Balance of the Mortgage Loans (and properties acquired in respect thereof) at the time of purchase being less than or equal to (i) 10% of the aggregate Scheduled Principal Balance of the Mortgage Loans as of the Cut-off Date with respect to the exercise of the optional termination right by the Servicer and (ii) 5% of the aggregate Scheduled Principal Balance of the Mortgage Loans as of the Cut-off Date with respect to the exercise of the optional termination right by the Master Servicer.

The recitals contained herein shall be taken as statements of the Depositor and neither the Trustee nor the Securities Administrator assumes any responsibility for their correctness.

Unless the certificate of authentication hereon has been executed by the Securities Administrator, by manual signature, this Certificate shall not be entitled to any benefit under the Agreement or be valid for any purpose.

 

 

IN WITNESS WHEREOF, the Securities Administrator has caused this Certificate to be duly executed.

Dated:

	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            WELLS FARGO BANK, N.A.
 as Securities Administrator
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Authorized Officer
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
   
 

 

 

 

CERTIFICATE OF AUTHENTICATION

This is one of the Class A-[1A][1B1][1B2][2A][2B][2C][2D] Certificates referred to in the within-mentioned Agreement.

	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            WELLS FARGO BANK, N.A.
 as Securities Administrator
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Authorized Signatory
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
   
 

 

 

 

ABBREVIATIONS

The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations:

	
            TEN COM    -
  	
            as tenants in common
  	
            UNIF GIFT MIN ACT -
  	
                  Custodian       

(Cust)        (Minor)

under Uniform Gifts 

to Minors Act
  
	
            TEN ENT      -
 	
            as tenants by the entireties
 	
             
 	
            ________________

(State)
 
	
            JT TEN         -
 	
            as joint tenants with right 

if survivorship and not as 

tenants in common
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 
	
            Additional abbreviations may also be used though not in the above list.
 

 

ASSIGNMENT

	
            FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) 
 
	
            unto
 	
             
 
	
             
 	
             
 
	
             
 	
             
 

(Please print or typewrite name, address including postal zip code, and Taxpayer Identification Number of assignee)

a Percentage Interest equal to   ____% evidenced by the within Asset Backed Pass-Through Certificate and hereby authorize(s) the registration of transfer of such interest to assignee on the Certificate Register of the Trust Fund.

I (we) further direct the Securities Administrator to issue a new Certificate of a like Percentage Interest and Class to the above named assignee and deliver such Certificate to the following address: 

	 	 	 
	
             
 	
             
 	
  .
 

 

	
            Dated:
 	
            
 
 
 
	
             
 	
            Signature by or on behalf of assignor
 
	
             
 	
             
 
	
             
 	
            
 
 
 
	
             
 	
  Signature Guaranteed
 

 

 

DISTRIBUTION INSTRUCTIONS

The assignee should include the following for purposes of distribution:

	
            Distributions shall be made, by wire transfer or otherwise, in immediately available 
 
	
            funds to
 	
             
 
	
             
 
	
            for the account of
 	
             
 
	
            account number
 	
             
 	
              or, if mailed by check, to
 
	
             
 
	
            Applicable statements should be mailed to
 	
             
 
	
             
 
	
             
 
	
            This information is provided by
 	
             
 
	
            assignee named above, or
 	
             
 
	
            its agent.
 	
             
 
								

 

 

 

EXHIBIT A-2

FORM OF CLASS M-[1][2][3][4][5][6] CERTIFICATE

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST” IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986 (THE “CODE”).

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES [[,/AND] CLASS M-1 CERTIFICATES [,/AND] CLASS M-2 CERTIFICATES[,/AND] CLASS M-3 CERTIFICATES [,/AND] CLASS M-4 CERTIFICATES [AND] CLASS M-5 CERTIFICATES] TO THE EXTENT DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.

ANY TRANSFEREE OF THIS CERTIFICATE SHALL BE DEEMED TO MAKE THE REPRESENTATIONS SET FORTH IN SECTION 6.02(c) OF THE AGREEMENT REFERRED TO HEREIN.

THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY THE PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO AS DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN. ACCORDINGLY, FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DIFFERENT FROM THE DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CERTIFICATE PRINCIPAL BALANCE BY INQUIRY OF THE SECURITIES ADMINISTRATOR NAMED HEREIN.

ANY PERSON ACQUIRING A CERTIFICATE DIRECTLY OR INDIRECTLY BY, ON BEHALF OF, OR WITH PLAN ASSETS OF AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT 

 

ARRANGEMENT THAT IS SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, SHALL BE DEEMED TO HAVE MADE THE REPRESENTATIONS IN SECTION 6.02(c) OF THE POOLING AND SERVICING AGREEMENT.

 

 

 

	
            Series 2005-AG1,  Class M-[1][2][3][4][5][6]
  	
             
  	
            Aggregate  Certificate Principal Balance of the Class M-[1][2][3][4][5][6]  Certificates as of the Issue Date: $______________
  
	
            Pass-Through Rate: Variable
 	
             
 	
            Denomination: $______________
 
	
            Date of Pooling and Servicing Agreement 

and Cut-off Date: October 1, 2005
 	
             
 	
            Master Servicer: Wells Fargo Bank, N.A.
 
	
            First Distribution Date: November 25, 2005
 	
             
 	
            Trustee: HSBC Bank USA, National Association
 
	
            No.___
 	
             
 	
            Issue Date: October 28, 2005
 
	
             
 	
             
 	
            CUSIP:_________________
 

 

ACE SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2005-AG1

ASSET BACKED PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting primarily of a pool of conventional one- to four-family, fixed and adjustable-rate first lien mortgage loans (the “Mortgage Loans”) formed and sold by

ACE SECURITIES CORP.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES CORP., THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE SERVICER, THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

This certifies that _____________________ is the registered owner of a Percentage Interest (obtained by dividing the denomination of this Certificate by the aggregate Certificate Principal Balance of the Class M-[1][2][3][4][5][6] Certificates as of the Issue Date) in that certain beneficial ownership interest evidenced by all the Class M-[1][2][3][4][5][6] Certificates in REMIC III created pursuant to a Pooling and Servicing Agreement, dated as specified above (the “Agreement”), among ACE Securities Corp., as depositor (hereinafter called the “Depositor”, which term includes any successor entity under the Agreement), Wells Fargo Bank, N.A. as master servicer (the “Master Servicer”) and securities administrator (the “Securities Administrator”), Litton Loan Servicing LP as servicer (the “Servicer”) and HSBC Bank USA, National Association as
trustee (the “Trustee”), a summary of certain of the pertinent provisions of which is set forth hereafter.  To the extent not defined herein, the capitalized terms used herein have the meanings assigned in the Agreement. This Certificate is issued under and is 

 

subject to the terms, provisions and conditions of the Agreement, to which Agreement the Holder of this Certificate by virtue of the acceptance hereof assents and by which such Holder is bound.

Pursuant to the terms of the Agreement, distributions will be made on the 25th day of each month or, if such 25th day is not a Business Day, the Business Day immediately following such 25th day (a “Distribution Date”), commencing on the First Distribution Date specified above, to the Person in whose name this Certificate is registered on the Business Day immediately preceding such Distribution Date (the “Record Date”), in an amount equal to the product of the Percentage Interest evidenced by this Certificate and the amount required to be distributed to the Holders of Class M-[1][2][3][4][5][6] Certificates on such Distribution Date pursuant to the Agreement.

All distributions to the Holder of this Certificate under the Agreement will be made or caused to be made by the Securities Administrator by wire transfer in immediately available funds to the account of the Person entitled thereto if such Person shall have so notified the Securities Administrator in writing at least five Business Days prior to the Record Date immediately prior to such Distribution Date and is the registered owner of Class M-[1][2][3][4][5][6] Certificates the aggregate initial Certificate Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii) two-thirds of the aggregate initial Certificate Principal Balance of the Class M-[1][2][3][4][5][6] Certificates, or otherwise by check mailed by first class mail to the address of the Person entitled thereto, as such name and address shall appear on the Certificate Register. Notwithstanding the above, the
final distribution on this Certificate will be made after due notice by the Securities Administrator of the pendency of such distribution and only upon presentation and surrender of this Certificate at the office or agency appointed by the Securities Administrator for that purpose as provided in the Agreement.

The Pass-Through Rate applicable to the calculation of interest payable with respect to this Certificate on any Distribution Date shall equal a rate per annum equal to the lesser of (i) One-Month LIBOR plus [____]% , in the case of each Distribution Date through and including the Distribution Date on which the aggregate Scheduled Principal Balance of the Mortgage Loans (and properties acquired in respect thereof) remaining in the Trust Fund is reduced to less than or equal to 10% of the aggregate Scheduled Principal Balance of the Mortgage Loans as of the Cut-off Date, or One-Month LIBOR plus [____]%, in the case of any Distribution Date thereafter and (ii) the applicable Net WAC Pass-Through Rate for such Distribution Date.

This Certificate is one of a duly authorized issue of Certificates designated as Asset Backed Pass-Through Certificate of the Series specified on the face hereof (herein called the “Certificates”) and representing a Percentage Interest in the Class of Certificates specified on the face hereof equal to the denomination specified on the face hereof divided by the aggregate Certificate Principal Balance of the Class of Certificates specified on the face hereof.

The Certificates are limited in right of payment to certain collections and recoveries respecting the Mortgage Loans and payments received pursuant to the Swap Agreement, all as more specifically set forth herein and in the Agreement. As provided in the Agreement, withdrawals from the Collection Account and the Distribution Account may be 

 

made from time to time for purposes other than distributions to Certificateholders, such purposes including reimbursement of advances made, or certain expenses incurred, with respect to the Mortgage Loans.

The Agreement permits, with certain exceptions therein provided, the amendment thereof and the modification of the rights and obligations of the Depositor, the Master Servicer, the Trustee, the Securities Administrator, the Servicer and the rights of the Certificateholders under the Agreement at any time by the Depositor, the Master Servicer, the Trustee, the Securities Administrator and the Servicer with the consent of the Holders of Certificates entitled to at least 66% of the Voting Rights.  Any such consent by the Holder of this Certificate shall be conclusive and binding on such Holder and upon all future Holders of this Certificate and of any Certificate issued upon the transfer hereof or in exchange herefor or in lieu hereof whether or not notation of such consent is made upon this Certificate.  The Agreement also permits the amendment thereof, in certain limited circumstances,
without the consent of the Holders of any of the Certificates.

As provided in the Agreement and subject to certain limitations therein set forth, the transfer of this Certificate is registrable in the Certificate Register upon surrender of this Certificate for registration of transfer at the offices or agencies appointed by the Securities Administrator as provided in the Agreement, duly endorsed by, or accompanied by an assignment in the form below or other written instrument of transfer in form satisfactory to the Securities Administrator duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more new Certificates of the same Class in authorized denominations evidencing the same aggregate Percentage Interest will be issued to the designated transferee or transferees.

The Certificates are issuable in fully registered form only without coupons in Classes and denominations representing Percentage Interests specified in the Agreement. As provided in the Agreement and subject to certain limitations therein set forth, the Certificates are exchangeable for new Certificates of the same Class in authorized denominations evidencing the same aggregate Percentage Interest, as requested by the Holder surrendering the same.

Any transferee of this Certificate shall be deemed to make the representations set forth in Section 6.02(c) of the Agreement.

No service charge will be made for any such registration of transfer or exchange of Certificates, but the Securities Administrator may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or exchange of Certificates.

The Depositor, the Master Servicer, the Trustee, the Securities Administrator, the Servicer and any agent of the Depositor, the Master Servicer, the Trustee, the Securities Administrator or the Servicer may treat the Person in whose name this Certificate is registered as the owner hereof for all purposes, and none of the Depositor, the Master Servicer, the Trustee, the Securities Administrator, the Servicer nor any such agent shall be affected by notice to the contrary.

 

 

The obligations created by the Agreement and the Trust Fund created thereby shall terminate upon payment to the Certificateholders of all amounts held by the Securities Administrator and required to be paid to them pursuant to the Agreement following the earlier of (i) the final payment or other liquidation (or any advance with respect thereto) of the last Mortgage Loan remaining in REMIC I and (ii) the purchase by the party designated in the Agreement at a price determined as provided in the Agreement from REMIC I of all the Mortgage Loans and all property acquired in respect of such Mortgage Loans. The Agreement permits, but does not require, the party designated in the Agreement to purchase from REMIC I all the Mortgage Loans and all property acquired in respect of any Mortgage Loan at a price determined as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to the aggregate Scheduled Principal Balance of the Mortgage Loans (and properties acquired in respect thereof) at the time of purchase being less than or equal to (i) 10% of the aggregate Scheduled Principal Balance of the Mortgage Loans as of the Cut-off Date with respect to the exercise of the optional termination right by the Servicer and (ii) 5% of the aggregate Scheduled Principal Balance of the Mortgage Loans as of the Cut-off Date with respect to the exercise of the optional termination right by the Master Servicer.

The recitals contained herein shall be taken as statements of the Depositor and neither the Trustee nor the Securities Administrator assume any responsibility for their correctness.

Unless the certificate of authentication hereon has been executed by the Securities Administrator by manual signature, this Certificate shall not be entitled to any benefit under the Agreement or be valid for any purpose.

 

 

IN WITNESS WHEREOF, the Securities Administrator has caused this Certificate to be duly executed.

Dated:

	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            WELLS FARGO BANK, N.A.
 as Securities Administrator
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Authorized Officer
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
   
 

 

 

CERTIFICATE OF AUTHENTICATION

This is one of the Class M-[1][2][3][4][5][6] Certificates referred to in the within-mentioned Agreement.

	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            WELLS FARGO BANK, N.A.
 as Securities Administrator
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Authorized Signatory
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
   
 

 

 

 

ABBREVIATIONS

The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations:

	
            TEN COM    -
  	
            as tenants in common
  	
            UNIF GIFT MIN ACT -
  	
                  Custodian       

(Cust)        (Minor)

under Uniform Gifts 

to Minors Act
  
	
            TEN ENT      -
 	
            as tenants by the entireties
 	
             
 	
            ________________

(State)
 
	
            JT TEN         -
 	
            as joint tenants with right 

if survivorship and not as 

tenants in common
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 
	
            Additional abbreviations may also be used though not in the above list.
 

 

ASSIGNMENT

	
            FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) 
 
	
            unto
 	
             
 
	
             
 	
             
 
	
             
 	
             
 

 (Please print or typewrite name, address including postal zip code, and Taxpayer Identification Number of assignee)

a Percentage Interest equal to _____% evidenced by the within Asset Backed Pass-Through Certificate and hereby authorize(s) the registration of transfer of such interest to assignee on the Certificate Register of the Trust Fund.

I (we) further direct the Securities Administrator to issue a new Certificate of a like Percentage Interest and Class to the above named assignee and deliver such Certificate to the following address:

	 	 	 
	
             
 	
             
 	
            .
 

 

	
            Dated:
 	
            
 
 
 
	
             
 	
            Signature by or on behalf of assignor
 
	
             
 	
             
 
	
             
 	
            
 
 
 
	
             
 	
  Signature Guaranteed
 

 

 

DISTRIBUTION INSTRUCTIONS

The assignee should include the following for purposes of distribution:

	
            Distributions shall be made, by wire transfer or otherwise, in immediately available 
 
	
            funds to
 	
             
 
	
             
 
	
            for the account of
 	
             
 
	
            account number
 	
             
 	
              or, if mailed by check, to
 
	
             
 
	
            Applicable statements should be mailed to
 	
             
 
	
             
 
	
             
 
	
            This information is provided by
 	
             
 
	
            assignee named above, or
 	
             
 
	
            its agent.
 	
             
 
								

 

 

 

EXHIBIT A-3

FORM OF CLASS B-[1][2][3][4][5] CERTIFICATES

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST” IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986 (THE “CODE”).

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A CERTIFICATES [,/AND] THE MEZZANINE CERTIFICATES [,/AND] THE CLASS B-1 CERTIFICATES] [,/AND] THE CLASS B-2 CERTIFICATES] [,/AND] THE CLASS B-3 CERTIFICATES] [AND] THE CLASS B-4 CERTIFICATES], AS DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.

THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY THE PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO AS DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN. ACCORDINGLY, FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DIFFERENT FROM THE DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CERTIFICATE PRINCIPAL BALANCE BY INQUIRY OF THE SECURITIES ADMINISTRATOR NAMED HEREIN.

THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS CERTIFICATE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY  IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS AND 

 

(1) OUTSIDE OF THE UNITED STATES WITHIN THE MEANING OF AND IN COMPLIANCE WITH REGULATION S UNDER THE ACT (“REGULATION S”), OR (2) WITHIN THE UNITED STATES TO (A) “QUALIFIED INSTITUTIONAL BUYERS” WITHIN THE MEANING OF AND IN COMPLIANCE WITH RULE 144A UNDER THE ACT (“RULE 144A”) OR (B) TO INSTITUTIONAL INVESTORS THAT ARE “ACCREDITED INVESTORS” WITHIN THE MEANING OF RULE 501(A)(1), (2), (3) OR (7) OF “REGULATION D” UNDER THE ACT.

[THIS CERTIFICATE IS A REGULATION S TEMPORARY GLOBAL CERTIFICATE FOR PURPOSES OF REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).  PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE LATER OF (I) THE COMMENCEMENT OF THE OFFERING OF THE OFFERED CERTIFICATES AND (II) THE CLOSING DATE, THIS CERTIFICATE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE UNITED STATES OR TO A U.S. PERSON EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.]

[NO BENEFICIAL OWNERS OF THIS REGULATION S TEMPORARY GLOBAL CERTIFICATE SHALL BE ENTITLED TO RECEIVE PAYMENTS OF PRINCIPAL OR INTEREST HEREIN UNLESS THE REQUIRED CERTIFICATIONS HAVE BEEN DELIVERED PURSUANT TO THE TERMS OF THE AGREEMENT (AS DEFINED HEREIN).]

[THE HOLDER OF THIS REGULATION S PERMANENT GLOBAL CERTIFICATE BY ITS ACCEPTANCE HEREOF AGREES NOT TO OFFER, SELL OR OTHERWISE TRANSFER SUCH CERTIFICATE WITHIN THE UNITED STATES OR TO U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT) PRIOR TO THE DATE WHICH IS THE LATER OF (I) 40 DAYS AFTER THE LATER OF THE CLOSING DATE AND (II) THE DATE ON WHICH THE REQUISITE CERTIFICATIONS ARE DUE TO AND PROVIDED TO THE TRUSTEE AND SECURITIES ADMINISTRATOR PURSUANT TO THE AGREEMENT (AS DEFINED BELOW), EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.]

NO TRANSFER OF THIS CERTIFICATE TO A PLAN SUBJECT TO ERISA OR SECTION 4975 OF THE CODE, ANY PERSON ACTING, DIRECTLY OR INDIRECTLY, ON BEHALF OF ANY SUCH PLAN OR ANY PERSON USING “PLAN ASSETS” TO ACQUIRE THIS CERTIFICATE SHALL BE MADE EXCEPT IN ACCORDANCE WITH SECTION 6.02(c) OF THE AGREEMENT.

 

 

 

	
            Series ACE 2005-AG1,  Class B-[1][2][3][4][5]
  	
             
  	
            Aggregate  Certificate Principal Balance of the Class B-[1][2][3][4][5] Certificates as  of the Issue Date: $_____________
  
	
            Pass-Through Rate: Variable
 	
             
 	
            Denomination: $______________
 
	
            Date of Pooling and Servicing Agreement

and Cut-off Date: October 1, 2005
 	
             
 	
            Master Servicer: Wells Fargo Bank, N.A.
 
	
            First Distribution Date: November 25, 2005
 	
             
 	
            Trustee: HSBC Bank USA, National Association
 
	
            No. ______
 	
             
 	
            Issue Date: October 28, 2005
 
	
             
 	
             
 	
            CUSIP:
 

 

ACE SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2005-AG1

ASSET BACKED PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting primarily of a pool of conventional one- to four-family, fixed and adjustable-rate first lien mortgage loans (the “Mortgage Loans”) formed and sold by

ACE SECURITIES CORP.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES CORP., THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE SERVICER, THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

This certifies that _______________ is the registered owner of a Percentage Interest (obtained by dividing the denomination of this Certificate by the aggregate Certificate Principal Balance of the Class B-[1][2][3][4][5] Certificates as of the Issue Date) in that certain beneficial ownership interest evidenced by all the Class B-[1][2][3][4][5] Certificates in REMIC III created pursuant to a Pooling and Servicing Agreement, dated as specified above (the “Agreement”), among ACE Securities Corp., as depositor (hereinafter called the “Depositor”, which term includes any successor entity under the Agreement), Wells Fargo Bank, N.A. as master servicer (the “Master Servicer”) and securities administrator (the “Securities Administrator”), Litton Loan Servicing LP as servicer (the “Servicer”) and HSBC Bank USA, National Association as trustee
(the “Trustee”), a summary of certain of the pertinent provisions of which is set forth hereafter. To the extent not defined herein, the capitalized terms used herein have the meanings assigned in the Agreement.  This Certificate is issued under and is subject to the terms, provisions and conditions of the Agreement, to which Agreement the Holder of this Certificate by virtue of the acceptance hereof assents and by which such Holder is bound.

 

 

Pursuant to the terms of the Agreement, distributions will be made on the 25th day of each month or, if such 25th day is not a Business Day, the Business Day immediately following such 25th day (a “Distribution Date”), commencing on the First Distribution Date specified above, to the Person in whose name this Certificate is registered at the close of business on the Business Day immediately preceding such Distribution Date (the “Record Date”), in an amount equal to the product of the Percentage Interest evidenced by this Certificate and the amount required to be distributed to the Holders of Class B-[1][2][3][4][5] Certificates on such Distribution Date pursuant to the Agreement.

All distributions to the Holder of this Certificate under the Agreement will be made or caused to be made by the Securities Administrator by wire transfer in immediately available funds to the account of the Person entitled thereto if such Person shall have so notified the Securities Administrator in writing at least five Business Days prior to the Record Date immediately prior to such Distribution Date and is the registered owner of Class B-[1][2][3][4][5] Certificates the aggregate initial Certificate Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii) two-thirds of the aggregate initial Certificate Principal Balance of the Class B-[1][2][3][4][5] Certificates, or otherwise by check mailed by first class mail to the address of the Person entitled thereto, as such name and address shall appear on the Certificate Register. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Securities Administrator of the pendency of such distribution and only upon presentation and surrender of this Certificate at the office or agency appointed by the Securities Administrator for that purpose as provided in the Agreement.

The Pass-Through Rate applicable to the calculation of interest payable with respect to this Certificate on any Distribution Date shall equal a rate per annum equal to the lesser of (i) One Month LIBOR plus _____%, in the case of each Distribution Date through and including the Distribution Date on which the aggregate Scheduled Principal Balance of the Mortgage Loans (and properties acquired in respect thereof) remaining in the Trust Fund is reduced to less than or equal to 10% of the aggregate Scheduled Principal Balance of the Mortgage Loans as of the Cut-off Date, or One-Month LIBOR plus _____%, in the case of any Distribution Date thereafter and (ii) the applicable Net WAC Pass-Through Rate for such Distribution Date.

This Certificate is one of a duly authorized issue of Certificates designated as Asset Backed Pass-Through Certificates of the Series specified on the face hereof (herein called the “Certificates”) and representing a Percentage Interest in the Class of Certificates specified on the face hereof equal to the denomination specified on the face hereof divided by the aggregate Certificate Principal Balance of the Class of Certificates specified on the face hereof.

The Certificates are limited in right of payment to certain collections and recoveries respecting the Mortgage Loans and payments received pursuant to the Swap Agreement, all as more specifically set forth herein and in the Agreement. As provided in the Agreement, withdrawals from the Collection Account and the Distribution Account may be made from time to time for purposes other than distributions to Certificateholders, such purposes including reimbursement of advances made, or certain expenses incurred, with respect to the Mortgage Loans.

 

 

The Agreement permits, with certain exceptions therein provided, the amendment thereof and the modification of the rights and obligations of the Depositor, the Master Servicer, the Trustee, the Securities Administrator, the Servicer and the rights of the Certificateholders under the Agreement at any time by the Depositor, the Master Servicer, the Trustee, the Securities Administrator and the Servicer with the consent of the Holders of Certificates entitled to at least 66% of the Voting Rights.  Any such consent by the Holder of this Certificate shall be conclusive and binding on such Holder and upon all future Holders of this Certificate and of any Certificate issued upon the transfer hereof or in exchange herefor or in lieu hereof whether or not notation of such consent is made upon this Certificate.  The Agreement also permits the amendment thereof, in certain limited circumstances,
without the consent of the Holders of any of the Certificates.

As provided in the Agreement and subject to certain limitations therein set forth, the transfer of this Certificate is registrable in the Certificate Register upon surrender of this Certificate for registration of transfer at the offices or agencies appointed by the Securities Administrator as provided in the Agreement, duly endorsed by, or accompanied by an assignment in the form below or other written instrument of transfer in form satisfactory to the Securities Administrator duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more new Certificates of the same Class in authorized denominations evidencing the same aggregate Percentage Interest will be issued to the designated transferee or transferees.

The Certificates are issuable in fully registered form only without coupons in Classes and denominations representing Percentage Interests specified in the Agreement. As provided in the Agreement and subject to certain limitations therein set forth, the Certificates are exchangeable for new Certificates of the same Class in authorized denominations evidencing the same aggregate Percentage Interest, as requested by the Holder surrendering the same.

No service charge will be made for any such registration of transfer or exchange of Certificates, but the Securities Administrator may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or exchange of Certificates.

No transfer of this Certificate shall be made unless the transfer is made pursuant to an effective registration statement under the Securities Act of 1933, as amended (the “1933 Act”), and an effective registration or qualification under applicable state securities laws, or is made in a transaction that does not require such registration or qualification. In the event that such a transfer of this Certificate is to be made without registration or qualification, the Securities Administrator shall require receipt of (i) if such transfer is purportedly being made in reliance upon Rule 144A or Regulation S under the 1933 Act, written certifications from the Holder of the Certificate desiring to effect the transfer, and from such Holder’s prospective transferee, substantially in the forms attached to the Agreement as Exhibit B-1, (ii) if such transfer is purportedly being made
in reliance upon Rule 501(a) under the 1933 Act, written certifications from the Holder of the Certificate desiring to effect the transfer and from such Holder’s prospective transferee, substantially in the form attached to the Agreement as Exhibit B-2 and (iii) in all other cases, an Opinion of Counsel satisfactory to it that such transfer may be made without such registration or qualification (which Opinion of Counsel shall not be an expense of 

 

the Trust Fund or of the Depositor, the Trustee, the Master Servicer or the Securities Administrator in their respective capacities as such), together with copies of the written certification(s) of the Holder of the Certificate desiring to effect the transfer and/or such Holder’s prospective transferee upon which such Opinion of Counsel is based. None of the Depositor, the Trustee or the Securities Administrator is obligated to register or qualify the Class of Certificates specified on the face hereof under the 1933 Act or any other securities law or to take any action not otherwise required under the Agreement to permit the transfer of such Certificates without registration or qualification.  Any Holder desiring to effect a transfer of this Certificate shall be required to indemnify the Trustee, the Depositor, the Master Servicer and the Securities Administrator against any liability that may result
if the transfer is not so exempt or is not made in accordance with such federal and state laws.

No transfer of this Certificate to a Plan subject to ERISA or Section 4975 of the Code, any Person acting, directly or indirectly, on behalf of any such Plan or any Person using “Plan Assets” to acquire this Certificate shall be made except in accordance with Section 6.02(c) of the Agreement.

The Depositor, the Master Servicer, the Trustee, the Securities Administrator, the Servicer and any agent of the Depositor, the Master Servicer, the Trustee, the Securities Administrator or the Servicer may treat the Person in whose name this Certificate is registered as the owner hereof for all purposes, and none of the Depositor, the Master Servicer, the Trustee, the Securities Administrator, the Servicer nor any such agent shall be affected by notice to the contrary.

The obligations created by the Agreement and the Trust Fund created thereby shall terminate upon payment to the Certificateholders of all amounts held by the Securities Administrator and required to be paid to them pursuant to the Agreement following the earlier of (i) the final payment or other liquidation (or any advance with respect thereto) of the last Mortgage Loan remaining in REMIC I and (ii) the purchase by the party designated in the Agreement at a price determined as provided in the Agreement from REMIC I of all the Mortgage Loans and all property acquired in respect of such Mortgage Loans. The Agreement permits, but does not require, the party designated in the Agreement to purchase from REMIC I all the Mortgage Loans and all property acquired in respect of any Mortgage Loan at a price determined as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to the aggregate Scheduled Principal Balance of the Mortgage Loans (and properties acquired in respect thereof) at the time of purchase being less than or equal to (i) 10% of the aggregate Scheduled Principal Balance of the Mortgage Loans as of the Cut-off Date with respect to the exercise of the optional termination right by the Servicer and (ii) 5% of the aggregate Scheduled Principal Balance of the Mortgage Loans as of the Cut-off Date with respect to the exercise of the optional termination right by the Master Servicer.

The recitals contained herein shall be taken as statements of the Depositor and neither the Trustee nor the Securities Administrator assume any responsibility for their correctness.

 

 

Unless the certificate of authentication hereon has been executed by the Securities Administrator, by manual signature, this Certificate shall not be entitled to any benefit under the Agreement or be valid for any purpose.

 

 

IN WITNESS WHEREOF, the Securities Administrator has caused this Certificate to be duly executed.

Dated:

	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            WELLS FARGO BANK, N.A.
 as Securities Administrator
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Authorized Officer
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
   
 

 

 

 

CERTIFICATE OF AUTHENTICATION

This is one of the Class B-[1][2][3][4][5] Certificates referred to in the within-mentioned Agreement.

	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            WELLS FARGO BANK, N.A.
 as Securities Administrator
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Authorized Signatory
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
   
 

 

 

 

 

 

 

ASSIGNMENT

	
            FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) 
 
	
            unto
 	
             
 
	
             
 	
             
 
	
             
 	
             
 

 (Please print or typewrite name, address including postal zip code, and Taxpayer Identification Number of assignee)

a Percentage Interest evidenced by the within Mortgage Pass-Through Certificate and hereby authorizes the transfer of registration of such interest to assignee on the Certificate Register of the Trust Fund.

I (We) further direct the Securities Administrator to issue a new Certificate of a like denomination and Class, to the above named assignee and deliver such Certificate to the following address:

	 	 	 
	
             
 	
             
 	
            .
 

 

	
            Dated:
 	
            
 
 
 
	
             
 	
            Signature by or on behalf of assignor
 
	
             
 	
             
 
	
             
 	
            
 
 
 
	
             
 	
            Signature Guaranteed
 

 

DISTRIBUTION INSTRUCTIONS

The assignee should include the following for purposes of distribution:

	
            Distributions shall be made, by wire transfer or otherwise, in immediately available 
 
	
            funds to
 	
             
 
	
             
 
	
            for the account of
 	
             
 
	
            account number
 	
             
 	
            or, if mailed by check, to
 
	
             
 
	
            Applicable statements should be mailed to
 	
             
 
	
             
 
	
             
 
	
            This information is provided by
 	
             
 
	
            assignee named above, or
 	
             
 
	
            its agent.
 	
             
 
								

 

 

EXHIBIT A-4

FORM OF CLASS CE CERTIFICATE

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST” IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986 (THE “CODE”).

THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE MEZZANINE CERTIFICATES AND THE CLASS B CERTIFICATES TO THE EXTENT DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.

THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS CERTIFICATE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY  IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS AND (1) OUTSIDE OF THE UNITED STATES WITHIN THE MEANING OF AND IN COMPLIANCE WITH REGULATION S UNDER THE ACT (“REGULATION S”), OR (2) WITHIN THE UNITED STATES TO (A) “QUALIFIED INSTITUTIONAL BUYERS” WITHIN THE MEANING OF AND IN COMPLIANCE WITH RULE 144A UNDER THE ACT (“RULE 144A”) OR (B) TO INSTITUTIONAL INVESTORS THAT ARE “ACCREDITED INVESTORS” WITHIN THE MEANING OF RULE 501(A)(1), (2), (3) OR (7) OF “REGULATION D” UNDER THE ACT.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE PROVIDES A CERTIFICATION PURSUANT TO SECTION 6.02(c) OF THE AGREEMENT.

 

 

 

 

	
            Series 2005-AG1, Class CE
 	
             
 	
            Aggregate Certificate Principal Balance of the Class CE Certificates as of the Issue Date: $_____________
 
	
            Pass-Through Rate: Variable
 	
             
 	
            Denomination: $_________________
 
	
            Cut-off Date and date of Pooling and Servicing Agreement: October 1, 2005
 	
             
 	
            Master Servicer: Wells Fargo Bank, N.A.
 
	
            First Distribution Date: November 25, 2005
 	
             
 	
            Trustee: HSBC Bank USA, National Association
 
	
            No. __
 	
             
 	
            Issue Date: October 28, 2005
 

 

ACE SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2005-AG1

ASSET BACKED PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting primarily of a pool of conventional one- to four-family, fixed and adjustable-rate, first lien mortgage loans (the “Mortgage Loans”) formed and sold by

ACE SECURITIES CORP.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES CORP., THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE SERVICER, THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

This certifies that ________________ is the registered owner of a Percentage Interest (obtained by dividing the denomination of this Certificate by the aggregate Certificate Principal Balance of the Class CE Certificates as of the Issue Date) in that certain beneficial ownership interest evidenced by all the Class CE Certificates in REMIC III created pursuant to a Pooling and Servicing Agreement, dated as specified above (the “Agreement”), among ACE Securities Corp., as depositor (hereinafter called the “Depositor,” which term includes any successor entity under the Agreement), Wells Fargo Bank, N.A. as master servicer (the “Master Servicer”) and securities administrator (the “Securities Administrator”), Litton Loan Servicing LP as servicer (the “Servicer”) and HSBC Bank USA, National Association as trustee (the “Trustee”), a
summary of certain of the pertinent provisions of which is set forth hereafter.  To the extent not defined herein, the capitalized terms used herein have the meanings assigned in the Agreement.  This Certificate is issued under and is subject to the terms, provisions and conditions of the Agreement, to which Agreement the Holder of this Certificate by virtue of the acceptance hereof assents and by which such Holder is bound.

 

 

Interest on this Certificate will accrue during the month prior to the month in which a Distribution Date (as hereinafter defined) occurs on the Notional Amount (as defined in the Agreement) hereof at a per annum rate equal to the Pass-Through Rate as set forth in the Agreement.  Pursuant to the terms of the Agreement, distributions will be made on the 25th day of each month or, if such 25th day is not a Business Day, the Business Day immediately following such 25th day (a “Distribution Date”), commencing on the First Distribution Date specified above, to the Person in whose name this Certificate is registered on the last Business Day of the calendar month immediately preceding the month in which the related Distribution Date
occurs (the “Record Date”),  in an amount equal to the product of the Percentage Interest evidenced by this Certificate and the amount required to be distributed to the Holders of Class CE Certificates on such Distribution Date pursuant to the Agreement.

All distributions to the Holder of this Certificate under the Agreement will be made or caused to be made by the Securities Administrator by wire transfer in immediately available funds to the account of the Person entitled thereto if such Person shall have so notified the Securities Administrator in writing at least five Business Days prior to the Record Date immediately prior to such Distribution Date and is the registered owner of Class CE Certificates the aggregate initial Certificate Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii) two-thirds of the aggregate initial Certificate Principal Balance of the Class CE Certificates, or otherwise by check mailed by first class mail to the address of the Person entitled thereto, as such name and address shall appear on the Certificate Register. Notwithstanding the above, the final distribution on this Certificate
will be made after due notice by the Securities Administrator of the pendency of such distribution and only upon presentation and surrender of this Certificate at the office or agency appointed by the Securities Administrator for that purpose as provided in the Agreement.

This Certificate is one of a duly authorized issue of Certificates designated as Asset Backed Pass-Through Certificate of the Series specified on the face hereof (herein called the “Certificates”) and representing a Percentage Interest in the Class of Certificates specified on the face hereof equal to the denomination specified on the face hereof divided by the aggregate Certificate Principal Balance of the Class of Certificates specified on the face hereof.

The Certificates are limited in right of payment to certain collections and recoveries respecting the Mortgage Loans, all as more specifically set forth herein and in the Agreement. As provided in the Agreement, withdrawals from the Collection Account and the Distribution Account may be made from time to time for purposes other than distributions to Certificateholders, such purposes including reimbursement of advances made, or certain expenses incurred, with respect to the Mortgage Loans.

The Agreement permits, with certain exceptions therein provided, the amendment thereof and the modification of the rights and obligations of the Depositor, the Master Servicer, the Trustee, the Securities Administrator, the Servicer and the rights of the Certificateholders under the Agreement at any time by the Depositor, the Master Servicer, the Trustee, the Securities Administrator and the Servicer with the consent of the Holders of Certificates entitled to at least 66% of the Voting Rights.  Any such consent by the Holder of this Certificate shall be conclusive and binding on such Holder and upon all future Holders of this Certificate and of any 

 

Certificate issued upon the transfer hereof or in exchange herefor or in lieu hereof whether or not notation of such consent is made upon this Certificate.  The Agreement also permits the amendment thereof, in certain limited circumstances, without the consent of the Holders of any of the Certificates.

As provided in the Agreement and subject to certain limitations therein set forth, the transfer of this Certificate is registrable in the Certificate Register upon surrender of this Certificate for registration of transfer at the offices or agencies appointed by the Securities Administrator as provided in the Agreement, duly endorsed by, or accompanied by an assignment in the form below or other written instrument of transfer in form satisfactory to the Securities Administrator duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more new Certificates of the same Class in authorized denominations evidencing the same aggregate Percentage Interest will be issued to the designated transferee or transferees.

No transfer of this Certificate shall be made unless the transfer is made pursuant to an effective registration statement under the Securities Act of 1933, as amended (the “1933 Act”), and an effective registration or qualification under applicable state securities laws, or is made in a transaction that does not require such registration or qualification. In the event that such a transfer of this Certificate is to be made without registration or qualification, the Securities Administrator shall require receipt of (i) if such transfer is purportedly being made in reliance upon Rule 144A or Regulation S under the 1933 Act, written certifications from the Holder of the Certificate desiring to effect the transfer, and from such Holder’s prospective transferee, substantially in the forms attached to the Agreement as Exhibit B-1, (ii) if such transfer is purportedly being made in
reliance upon Rule 501(a) under the 1933 Act, written certifications from the Holder of the Certificate desiring to effect the transfer and from such Holder’s prospective transferee, substantially in the form attached to the Agreement as Exhibit B-2 and (iii) in all other cases, an Opinion of Counsel satisfactory to it that such transfer may be made without such registration or qualification (which Opinion of Counsel shall not be an expense of the Trust Fund or of the Depositor, the Trustee, the Master Servicer or the Securities Administrator in their respective capacities as such), together with copies of the written certification(s) of the Holder of the Certificate desiring to effect the transfer and/or such Holder’s prospective transferee upon which such Opinion of Counsel is based. None of the Depositor, the Trustee or the Securities Administrator is obligated to register or qualify the Class of Certificates specified on the face hereof under the 1933 Act or any other
securities law or to take any action not otherwise required under the Agreement to permit the transfer of such Certificates without registration or qualification.  Any Holder desiring to effect a transfer of this Certificate shall be required to indemnify the Trustee, the Depositor, the Master Servicer and the Securities Administrator against any liability that may result if the transfer is not so exempt or is not made in accordance with such federal and state laws.

No transfer of this Certificate to a Plan subject to ERISA or Section 4975 of the Code, any Person acting, directly or indirectly, on behalf of any such Plan or any Person using “Plan Assets” to acquire this Certificate shall be made except in accordance with Section 6.02(c) of the Agreement.

 

 

The Certificates are issuable in fully registered form only without coupons in Classes and denominations representing Percentage Interests specified in the Agreement. As provided in the Agreement and subject to certain limitations therein set forth, the Certificates are exchangeable for new Certificates of the same Class in authorized denominations evidencing the same aggregate Percentage Interest, as requested by the Holder surrendering the same.  No service charge will be made for any such registration of transfer or exchange of Certificates, but the Securities Administrator may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or exchange of Certificates.

The Depositor, the Master Servicer, the Trustee, the Securities Administrator, the Servicer and any agent of the Depositor, the Master Servicer, the Trustee, the Securities Administrator or the Servicer may treat the Person in whose name this Certificate is registered as the owner hereof for all purposes, and none of the Depositor, the Master Servicer, the Trustee, the Securities Administrator, the Servicer nor any such agent shall be affected by notice to the contrary.

The obligations created by the Agreement and the Trust Fund created thereby shall terminate upon payment to the Certificateholders of all amounts held by the Securities Administrator and required to be paid to them pursuant to the Agreement following the earlier of (i) the final payment or other liquidation (or any advance with respect thereto) of the last Mortgage Loan remaining in REMIC I and (ii) the purchase by the party designated in the Agreement at a price determined as provided in the Agreement from REMIC I of all the Mortgage Loans and all property acquired in respect of such Mortgage Loans. The Agreement permits, but does not require, the party designated in the Agreement to purchase from REMIC I all the Mortgage Loans and all property acquired in respect of any Mortgage Loan at a price determined as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to the aggregate Scheduled Principal Balance of the Mortgage Loans (and properties acquired in respect thereof) at the time of purchase being less than or equal to (i) 10% of the aggregate Scheduled Principal Balance of the Mortgage Loans as of the Cut-off Date with respect to the exercise of the optional termination right by the Servicer and (ii) 5% of the aggregate Scheduled Principal Balance of the Mortgage Loans as of the Cut-off Date with respect to the exercise of the optional termination right by the Master Servicer.

The recitals contained herein shall be taken as statements of the Depositor and neither the Trustee nor the Securities Administrator assume any responsibility for their correctness.

Unless the certificate of authentication hereon has been executed by the Securities Administrator, by manual signature, this Certificate shall not be entitled to any benefit under the Agreement or be valid for any purpose.

 

 

IN WITNESS WHEREOF, the Securities Administrator has caused this Certificate to be duly executed.

Dated:

	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            WELLS FARGO BANK, N.A.
 as Securities Administrator
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Authorized Officer
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 

 

 

CERTIFICATE OF AUTHENTICATION

This is one of the Class CE Certificates referred to in the within-mentioned Agreement.

	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            WELLS FARGO BANK, N.A.
 as Securities Administrator
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Authorized Officer
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 

 

 

ABBREVIATIONS

The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations:

	
            TEN COM    -
  	
            as tenants in common
  	
            UNIF GIFT MIN ACT -
  	
                  Custodian       

(Cust)        (Minor)

under Uniform Gifts 

to Minors Act
  
	
            TEN ENT      -
 	
            as tenants by the entireties
 	
             
 	
            ________________

(State)
 
	
            JT TEN         -
 	
            as joint tenants with right 

if survivorship and not as 

tenants in common
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 
	
            Additional abbreviations may also be used though not in the above list.
 

 

ASSIGNMENT

	
            FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) 
 
	
            unto
 	
             
 
	
             
 	
             
 
	
             
 	
             
 

(Please print or typewrite name, address including postal zip code, and Taxpayer Identification Number of assignee) 

a Percentage Interest equal to ____% evidenced by the within Asset Backed Pass-Through Certificate and hereby authorize(s) the registration of transfer of such interest to assignee on the Certificate Register of the Trust Fund.

I (we) further direct the Securities Administrator to issue a new Certificate of a like Percentage Interest and Class to the above named assignee and deliver such Certificate to the following address:

	 	 	 
	
             
 	
             
 	
            .
 

 

	
            Dated:
 	
            
 
 
 
	
             
 	
            Signature by or on behalf of assignor
 
	
             
 	
             
 
	
             
 	
            
 
 
 
	
             
 	
            Signature Guaranteed
 

 

 

DISTRIBUTION INSTRUCTIONS

The assignee should include the following for purposes of distribution:

	
            Distributions shall be made, by wire transfer or otherwise, in immediately available 
 
	
            funds to
 	
             
 
	
             
 
	
            for the account of
 	
             
 
	
            account number
 	
             
 	
            or, if mailed by check, to
 
	
             
 
	
            Applicable statements should be mailed to
 	
             
 
	
             
 
	
             
 
	
            This information is provided by
 	
             
 
	
            assignee named above, or
 	
             
 
	
            its agent.
 	
             
 
								

 

 

EXHIBIT A-5

FORM OF CLASS P CERTIFICATE

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST” IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986 (THE “CODE”).

THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS CERTIFICATE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY  IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS AND (1) OUTSIDE OF THE UNITED STATES WITHIN THE MEANING OF AND IN COMPLIANCE WITH REGULATION S UNDER THE ACT (“REGULATION S”), OR (2) WITHIN THE UNITED STATES TO (A) “QUALIFIED INSTITUTIONAL BUYERS” WITHIN THE MEANING OF AND IN COMPLIANCE WITH RULE 144A UNDER THE ACT (“RULE 144A”) OR (B) TO INSTITUTIONAL INVESTORS THAT ARE “ACCREDITED INVESTORS” WITHIN THE MEANING OF RULE 501(A)(1), (2), (3) OR (7) OF “REGULATION D” UNDER THE ACT.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE PROVIDES A CERTIFICATION PURSUANT TO SECTION 6.02(c) OF THE AGREEMENT.

 

 

 

	
            Series 2005-AG1, Class P
 	
             
 	
            Aggregate Certificate Principal Balance of the Class P Certificates as of the Issue Date: $100.00
 
	
            Cut-off Date and date of Pooling and Servicing Agreement: October 1, 2005
 	
             
 	
            Denomination: $100.00
 
	
            First Distribution Date: November 25, 2005

 
 	
             
 	
            Master Servicer: Wells Fargo Bank, N.A.

 
 
	
            No. __
 	
             
 	
            Trustee: HSBC Bank USA, National Association
 
	
             
 	
             
 	
            Issue Date: October 28, 2005
 

 

ACE SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2005-AG1

ASSET BACKED PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting primarily of a pool of conventional one- to four-family, fixed and adjustable-rate, first lien mortgage loans (the “Mortgage Loans”) formed and sold by

ACE SECURITIES CORP.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES CORP., THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE SERVICER, THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

This certifies that____________________ is the registered owner of a Percentage Interest (obtained by dividing the denomination of this Certificate by the aggregate Certificate Principal Balance of the Class P Certificates as of the Issue Date) in that certain beneficial ownership interest evidenced by all the Class P Certificates in REMIC III created pursuant to a Pooling and Servicing Agreement, dated as specified above (the “Agreement”), among ACE Securities Corp., as depositor (hereinafter called the “Depositor”, which term includes any successor entity under the Agreement), Wells Fargo Bank, N.A. as master servicer (the “Master Servicer”) and securities administrator (the “Securities Administrator”), Litton Loan Servicing LP as servicer (the “Servicer”) and HSBC Bank USA, National Association as trustee (the “Trustee”), a
summary of certain of the pertinent provisions of which is set forth hereafter. To the extent not defined herein, the capitalized terms used herein have the meanings assigned in the Agreement.  This Certificate is issued under and is subject to the terms, provisions and conditions of the Agreement, to which Agreement the Holder of this Certificate by virtue of the acceptance hereof assents and by which such Holder is bound.

 

 

Pursuant to the terms of the Agreement, distributions will be made on the 25th day of each month or, if such 25th day is not a Business Day, the Business Day immediately following such 25th day (a “Distribution Date”), commencing on the First Distribution Date specified above, to the Person in whose name this Certificate is registered on the last Business Day of the calendar month immediately preceding the month in which the related Distribution Date occurs (the “Record Date”), in an amount equal to the product of the Percentage Interest evidenced by this Certificate and the amount required to be distributed to the Holders of Class P Certificates on such Distribution Date pursuant to the Agreement.

All distributions to the Holder of this Certificate under the Agreement will be made or caused to be made by the Securities Administrator by wire transfer in immediately available funds to the account of the Person entitled thereto if such Person shall have so notified the Securities Administrator in writing at least five Business Days prior to the Record Date immediately prior to such Distribution Date and is the registered owner of Class P Certificates the aggregate initial Certificate Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii) two-thirds of the aggregate initial Certificate Principal Balance of the Class P Certificates, or otherwise by check mailed by first class mail to the address of the Person entitled thereto, as such name and address shall appear on the Certificate Register. Notwithstanding the above, the final distribution on this Certificate
will be made after due notice by the Securities Administrator of the pendency of such distribution and only upon presentation and surrender of this Certificate at the office or agency appointed by the Securities Administrator for that purpose as provided in the Agreement.

This Certificate is one of a duly authorized issue of Certificates designated as Asset Backed Pass-Through Certificate of the Series specified on the face hereof (herein called the “Certificates”) and representing a Percentage Interest in the Class of Certificates specified on the face hereof equal to the denomination specified on the face hereof divided by the aggregate Certificate Principal Balance of the Class of Certificates specified on the face hereof.

The Certificates are limited in right of payment to certain collections and recoveries respecting the Mortgage Loans, all as more specifically set forth herein and in the Agreement. As provided in the Agreement, withdrawals from the Collection Account and the Distribution Account may be made from time to time for purposes other than distributions to Certificateholders, such purposes including reimbursement of advances made, or certain expenses incurred, with respect to the Mortgage Loans.

The Agreement permits, with certain exceptions therein provided, the amendment thereof and the modification of the rights and obligations of the Depositor, the Master Servicer, the Trustee, the Securities Administrator, the Servicer and the rights of the Certificateholders under the Agreement at any time by the Depositor, the Master Servicer, the Trustee, the Securities Administrator and the Servicer with the consent of the Holders of Certificates entitled to at least 66% of the Voting Rights.  Any such consent by the Holder of this Certificate shall be conclusive and binding on such Holder and upon all future Holders of this Certificate and of any Certificate issued upon the transfer hereof or in exchange herefor or in lieu hereof whether or not notation of such consent is made upon this Certificate.  The Agreement also permits the 

 

amendment thereof, in certain limited circumstances, without the consent of the Holders of any of the Certificates.

As provided in the Agreement and subject to certain limitations therein set forth, the transfer of this Certificate is registrable in the Certificate Register upon surrender of this Certificate for registration of transfer at the offices or agencies appointed by the Securities Administrator as provided in the Agreement, duly endorsed by, or accompanied by an assignment in the form below or other written instrument of transfer in form satisfactory to the Securities Administrator duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more new Certificates of the same Class in authorized denominations evidencing the same aggregate Percentage Interest will be issued to the designated transferee or transferees.

No transfer of this Certificate shall be made unless the transfer is made pursuant to an effective registration statement under the Securities Act of 1933, as amended (the “1933 Act”), and an effective registration or qualification under applicable state securities laws, or is made in a transaction that does not require such registration or qualification. In the event that such a transfer of this Certificate is to be made without registration or qualification, the Securities Administrator shall require receipt of (i) if such transfer is purportedly being made in reliance upon Rule 144A or Regulation S under the 1933 Act, written certifications from the Holder of the Certificate desiring to effect the transfer, and from such Holder’s prospective transferee, substantially in the forms attached to the Agreement as Exhibit B-1, (ii) if such transfer is purportedly being made in
reliance upon Rule 501(a) under the 1933 Act, written certifications from the Holder of the Certificate desiring to effect the transfer and from such Holder’s prospective transferee, substantially in the form attached to the Agreement as Exhibit B-2 and (iii) in all other cases, an Opinion of Counsel satisfactory to it that such transfer may be made without such registration or qualification (which Opinion of Counsel shall not be an expense of the Trust Fund or of the Depositor, the Trustee, the Master Servicer or the Securities Administrator in their respective capacities as such), together with copies of the written certification(s) of the Holder of the Certificate desiring to effect the transfer and/or such Holder’s prospective transferee upon which such Opinion of Counsel is based. None of the Depositor, the Trustee or the Securities Administrator is obligated to register or qualify the Class of Certificates specified on the face hereof under the 1933 Act or any other
securities law or to take any action not otherwise required under the Agreement to permit the transfer of such Certificates without registration or qualification.  Any Holder desiring to effect a transfer of this Certificate shall be required to indemnify the Trustee, the Depositor, the Master Servicer and the Securities Administrator against any liability that may result if the transfer is not so exempt or is not made in accordance with such federal and state laws.

No transfer of this Certificate to a Plan subject to ERISA or Section 4975 of the Code, any Person acting, directly or indirectly, on behalf of any such Plan or any Person using “Plan Assets” to acquire this Certificate shall be made except in accordance with Section 6.02(c) of the Agreement.

The Certificates are issuable in fully registered form only without coupons in Classes and denominations representing Percentage Interests specified in the Agreement. As 

 

provided in the Agreement and subject to certain limitations therein set forth, the Certificates are exchangeable for new Certificates of the same Class in authorized denominations evidencing the same aggregate Percentage Interest, as requested by the Holder surrendering the same.  No service charge will be made for any such registration of transfer or exchange of Certificates, but the Securities Administrator may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or exchange of Certificates.

The Depositor, the Master Servicer, the Trustee, the Securities Administrator, the Servicer and any agent of the Depositor, the Master Servicer, the Trustee, the Securities Administrator or the Servicer may treat the Person in whose name this Certificate is registered as the owner hereof for all purposes, and none of the Depositor, the Master Servicer, the Trustee, the Securities Administrator, the Servicer nor any such agent shall be affected by notice to the contrary.

The obligations created by the Agreement and the Trust Fund created thereby shall terminate upon payment to the Certificateholders of all amounts held by the Securities Administrator and required to be paid to them pursuant to the Agreement following the earlier of (i) the final payment or other liquidation (or any advance with respect thereto) of the last Mortgage Loan remaining in REMIC I and (ii) the purchase by the party designated in the Agreement at a price determined as provided in the Agreement from REMIC I of all the Mortgage Loans and all property acquired in respect of such Mortgage Loans. The Agreement permits, but does not require, the party designated in the Agreement to purchase from REMIC I all the Mortgage Loans and all property acquired in respect of any Mortgage Loan at a price determined as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to the aggregate Scheduled Principal Balance of the Mortgage Loans (and properties acquired in respect thereof) at the time of purchase being less than or equal to (i) 10% of the aggregate Scheduled Principal Balance of the Mortgage Loans as of the Cut-off Date with respect to the exercise of the optional termination right by the Servicer and (ii) 5% of the aggregate Scheduled Principal Balance of the Mortgage Loans as of the Cut-off Date with respect to the exercise of the optional termination right by the Master Servicer.

The recitals contained herein shall be taken as statements of the Depositor and neither the Trustee nor the Securities Administrator assume any responsibility for their correctness.

Unless the certificate of authentication hereon has been executed by the Securities Administrator, by manual signature, this Certificate shall not be entitled to any benefit under the Agreement or be valid for any purpose.

 

 

IN WITNESS WHEREOF, the Securities Administrator has caused this Certificate to be duly executed.

Dated:

	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            WELLS FARGO BANK, N.A.
 as Securities Administrator
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Authorized Officer
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 

 

 

 

CERTIFICATE OF AUTHENTICATION

This is one of the Class P Certificates referred to in the within-mentioned Agreement.

	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            WELLS FARGO BANK, N.A.
 as Securities Administrator
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Authorized Officer
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 

 

 

 

ABBREVIATIONS

The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations:

	
            TEN COM    -
  	
            as tenants in common
  	
            UNIF GIFT MIN ACT -
  	
                  Custodian       

(Cust)        (Minor)

under Uniform Gifts 

to Minors Act
  
	
            TEN ENT      -
 	
            as tenants by the entireties
 	
             
 	
            ________________

(State)
 
	
            JT TEN         -
 	
            as joint tenants with right 

if survivorship and not as 

tenants in common
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 
	
            Additional abbreviations may also be used though not in the above list.
 

 

ASSIGNMENT

	
            FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) 
 
	
            unto
 	
             
 
	
             
 	
             
 
	
             
 	
             
 

(Please print or typewrite name, address including postal zip code, and Taxpayer Identification Number of assignee)

a Percentage Interest equal to ____% evidenced by the within Asset Backed Pass-Through Certificate and hereby authorize(s) the registration of transfer of such interest to assignee on the Certificate Register of the Trust Fund.

I (we) further direct the Securities Administrator to issue a new Certificate of a like Percentage Interest and Class to the above named assignee and deliver such Certificate to the following address:

	 	 	 
	
             
 	
             
 	
            .
 

 

	
            Dated:
 	
            
 
 
 
	
             
 	
            Signature by or on behalf of assignor
 
	
             
 	
             
 
	
             
 	
            
 
 
 
	
             
 	
            Signature Guaranteed
 

 

 

DISTRIBUTION INSTRUCTIONS

The assignee should include the following for purposes of distribution:

	
            Distributions shall be made, by wire transfer or otherwise, in immediately available 
 
	
            funds to
 	
             
 
	
             
 
	
            for the account of
 	
             
 
	
            account number
 	
             
 	
            or, if mailed by check, to
 
	
             
 
	
            Applicable statements should be mailed to
 	
             
 
	
             
 
	
             
 
	
            This information is provided by
 	
             
 
	
            assignee named above, or
 	
             
 
	
            its agent.
 	
             
 
								

 

 

 

 

EXHIBIT A-6

FORM OF CLASS [R][R-X] CERTIFICATE

THIS CERTIFICATE MAY NOT BE TRANSFERRED TO A NON-UNITED STATES PERSON.

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS THE SOLE “RESIDUAL INTEREST” IN EACH “REAL ESTATE MORTGAGE INVESTMENT CONDUIT” (“REMIC”), AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986 (THE “CODE”).

ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY IN ACCORDANCE WITH THE PROVISIONS OF SECTION 6.02 OF THE AGREEMENT REFERRED TO HEREIN.

THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT AND LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS THAT ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 6.02 OF THE AGREEMENT.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES (I) AN AFFIDAVIT TO THE SECURITIES ADMINISTRATOR THAT (A) SUCH TRANSFEREE IS NOT (1) THE UNITED STATES OR ANY POSSESSION THEREOF, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF ANY OF THE FOREGOING, (2) ANY ORGANIZATION (OTHER THAN A COOPERATIVE DESCRIBED IN SECTION 521 OF THE CODE) THAT IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 

 

511 OF THE CODE, (3) ANY ORGANIZATION DESCRIBED IN SECTION 1381(a)(2)(C) OF THE CODE (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (1), (2) OR (3) SHALL HEREINAFTER BE REFERRED TO AS A “DISQUALIFIED ORGANIZATION”) OR (4) AN AGENT OF A DISQUALIFIED ORGANIZATION AND (B) NO PURPOSE OF SUCH TRANSFER IS TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX, AND (II) SUCH TRANSFEREE SATISFIES CERTAIN ADDITIONAL CONDITIONS RELATING TO THE FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE. NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE REGISTER OF ANY TRANSFER, SALE OR OTHER DISPOSITION OF THIS CERTIFICATE TO A DISQUALIFIED ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE
RECEIPT OF DISTRIBUTIONS ON THIS CERTIFICATE. EACH HOLDER OF THIS CERTIFICATE BY ACCEPTANCE HEREOF SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH AND THE PROVISIONS OF SECTION 6.02(d) OF THE AGREEMENT REFERRED TO HEREIN. ANY PERSON THAT IS A DISQUALIFIED ORGANIZATION IS PROHIBITED FROM ACQUIRING BENEFICIAL OWNERSHIP OF THIS CERTIFICATE.

ANY PERSON ACQUIRING A CERTIFICATE DIRECTLY OR INDIRECTLY BY, ON BEHALF OF, OR WITH PLAN ASSETS OF AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, SHALL BE DEEMED TO HAVE MADE THE REPRESENTATIONS OR PROVIDED THE OPINION OF COUNSEL IN SECTION 6.02(c) OF THE POOLING AND SERVICING AGREEMENT.

 

 

 

 

	

            Series 2005-AG1,  Class [R][R-X]
  	
             
  	
            Aggregate  Percentage Interest of the Class [R][R-X] Certificates as of the Issue Date:  100.00%
  
	
            Date of Pooling and Servicing Agreement

and Cut-off Date: October 1, 2005
 	
             
 	
            Master Servicer: Wells Fargo Bank, N.A.
 
	
            First Distribution Date: November 25, 2005
 	
             
 	
            Trustee: HSBC Bank USA, National Association
 
	
            No __
 	
             
 	
            Issue Date: October 28, 2005
 

 

ACE SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2005-AG1

ASSET BACKED PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting primarily of a pool of conventional one- to four-family, fixed and adjustable-rate first lien mortgage loans (the “Mortgage Loans”) formed and sold by

ACE SECURITIES CORP.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES CORP., THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE SERVICER, THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

 

This certifies that _______________ is the registered owner of a Percentage Interest (obtained by dividing the denomination of this Certificate by the aggregate Certificate Principal Balance of the Class [R][R-X] Certificates as of the Issue Date) in that certain beneficial ownership interest evidenced by all the Class [R][R-X] Certificates in REMIC [III][VI] created pursuant to a Pooling and Servicing Agreement, dated as specified above (the “Agreement”), among ACE Securities Corp., as depositor (hereinafter called the “Depositor”, which term includes any successor entity under the Agreement), Wells Fargo Bank, N.A. as master servicer (the “Master Servicer”) and securities administrator (the “Securities Administrator”), Litton Loan Servicing LP as servicer (the “Servicer”) and HSBC Bank USA, National Association as trustee (the
“Trustee”), a summary of certain of the pertinent provisions of which is set forth hereafter. To the extent not defined herein, the capitalized terms used herein have the meanings assigned in the Agreement. This Certificate is issued under and is subject to the terms, provisions and conditions of the Agreement, to which Agreement the Holder of this Certificate by virtue of the acceptance hereof assents and by which such Holder is bound.

 

 

Pursuant to the terms of the Agreement, distributions will be made on the 25th day of each month or, if such 25th day is not a Business Day, the Business Day immediately following (a “Distribution Date”), commencing on the First Distribution Date specified above, to the Person in whose name this Certificate is registered on the Record Date, in an amount equal to the product of the Percentage Interest evidenced by this Certificate and the amount required to be distributed to the Holders of Class [R][R-X] Certificates on such Distribution Date pursuant to the Agreement.

All distributions to the Holder of this Certificate under the Agreement will be made or caused to be made by the Securities Administrator by wire transfer in immediately available funds to the account of the Person entitled thereto if such Person shall have so notified the Securities Administrator in writing at least five Business Days prior to the Record Date immediately prior to such Distribution Date and is the registered owner of Class [R][R-X] Certificates, or otherwise by check mailed by first class mail to the address of the Person entitled thereto, as such name and address shall appear on the Certificate Register. Notwithstanding the above, the final distribution on this Certificate will be made after due notice by the Securities Administrator of the pendency of such distribution and only upon presentation and surrender of this Certificate at the office or agency appointed by the
Securities Administrator for that purpose as provided in the Agreement.

This Certificate is one of a duly authorized issue of Certificates designated as Asset Backed Pass-Through Certificate of the Series specified on the face hereof (herein called the “Certificates”) and representing a Percentage Interest in the Class of Certificates specified on the face hereof equal to the denomination specified on the face hereof divided by the aggregate Certificate Principal Balance of the Class of Certificates specified on the face hereof.

The Certificates are limited in right of payment to certain collections and recoveries respecting the Mortgage Loans, all as more specifically set forth herein and in the Agreement. As provided in the Agreement, withdrawals from the Collection Account and the Distribution Account may be made from time to time for purposes other than distributions to Certificateholders, such purposes including reimbursement of advances made, or certain expenses incurred, with respect to the Mortgage Loans.

The Agreement permits, with certain exceptions therein provided, the amendment thereof and the modification of the rights and obligations of the Depositor, the Master Servicer, the Trustee, the Securities Administrator, the Servicer and the rights of the Certificateholders under the Agreement at any time by the Depositor, the Master Servicer, the Trustee, the Securities Administrator and the Servicer with the consent of the Holders of Certificates entitled to at least 66% of the Voting Rights.  Any such consent by the Holder of this Certificate shall be conclusive and binding on such Holder and upon all future Holders of this Certificate and of any Certificate issued upon the transfer hereof or in exchange herefor or in lieu hereof whether or not notation of such consent is made upon this Certificate.  The Agreement also permits the amendment thereof, in certain limited circumstances,
without the consent of the Holders of any of the Certificates.

 

 

As provided in the Agreement and subject to certain limitations therein set forth, the transfer of this Certificate is registrable in the Certificate Register upon surrender of this Certificate for registration of transfer at the offices or agencies appointed by the Securities Administrator as provided in the Agreement, duly endorsed by, or accompanied by an assignment in the form below or other written instrument of transfer in form satisfactory to the Securities Administrator duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more new Certificates of the same Class in authorized denominations evidencing the same aggregate Percentage Interest will be issued to the designated transferee or transferees.

The Certificates are issuable in fully registered form only without coupons in Classes and denominations representing Percentage Interests specified in the Agreement. As provided in the Agreement and subject to certain limitations therein set forth, Certificates are exchangeable for new Certificates of the same Class in authorized denominations evidencing the same aggregate Percentage Interest, as requested by the Holder surrendering the same.

No transfer of this Certificate shall be made unless the transfer is made pursuant to an effective registration statement under the Securities Act of 1933, as amended (the “1933 Act”), and an effective registration or qualification under applicable state securities laws, or is made in a transaction that does not require such registration or qualification. In the event that such a transfer of this Certificate is to be made without registration or qualification, the Securities Administrator shall require receipt of (i) if such transfer is purportedly being made in reliance upon Rule 144A under the 1933 Act, written certifications from the Holder of the Certificate desiring to effect the transfer, and from such Holder’s prospective transferee, substantially in the forms attached to the Agreement as Exhibit B-1, and (ii) in all other cases, an Opinion of Counsel satisfactory to
it that such transfer may be made without such registration or qualification (which Opinion of Counsel shall not be an expense of the Trust Fund or of the Depositor, the Trustee, the Master Servicer or the Securities Administrator in their respective capacities as such), together with copies of the written certification(s) of the Holder of the Certificate desiring to effect the transfer and/or such Holder’s prospective transferee upon which such Opinion of Counsel is based. None of the Depositor, the Trustee or the Securities Administrator is obligated to register or qualify the Class of Certificates specified on the face hereof under the 1933 Act or any other securities law or to take any action not otherwise required under the Agreement to permit the transfer of such Certificates without registration or qualification.  Any Holder desiring to effect a transfer of this Certificate shall be required to indemnify the Trustee, the Depositor, the Master Servicer and the Securities
Administrator against any liability that may result if the transfer is not so exempt or is not made in accordance with such federal and state laws.

No transfer of this Certificate to a Plan subject to ERISA or Section 4975 of the Code, any Person acting, directly or indirectly, on behalf of any such Plan or any Person using “Plan Assets” to acquire this Certificate shall be made except in accordance with Section 6.02 of the Agreement.

Prior to registration of any transfer, sale or other disposition of this Certificate, the proposed transferee shall provide to the Securities Administrator (i) an affidavit to the effect that 

 

such transferee is any Person other than a Disqualified Organization or the agent (including a broker, nominee or middleman) of a Disqualified Organization, and (ii) a certificate that acknowledges that (A) the Class [R][R-X] Certificates have been designated as representing the beneficial ownership of the residual interests in each of [REMIC I and REMIC II][REMIC IV and REMIC V], (B) it will include in its income a pro rata share of the net income of the Trust Fund and that such income may be an “excess inclusion,” as defined in the Code, that, with certain exceptions, cannot be offset by other losses or benefits from any tax exemption, and (C) it expects to have the financial means to satisfy all of its tax obligations including those relating to holding the Class [R][R-X] Certificates. Notwithstanding the registration in the Certificate Register
of any transfer, sale or other disposition of this Certificate to a Disqualified Organization or an agent (including a broker, nominee or middleman) of a Disqualified Organization, such registration shall be deemed to be of no legal force or effect whatsoever and such Person shall not be deemed to be a Certificateholder for any purpose, including, but not limited to, the receipt of distributions in respect of this Certificate.

The Holder of this Certificate, by its acceptance hereof, shall be deemed to have consented to the provisions of Section 6.02 of the Agreement and to any amendment of the Agreement deemed necessary by counsel of the Depositor to ensure that the transfer of this Certificate to any Person other than a Permitted Transferee or any other Person will not cause any portion of the Trust Fund to cease to qualify as a REMIC or cause the imposition of a tax upon any REMIC.

No service charge will be made for any such registration of transfer or exchange of Certificates, but the Securities Administrator may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or exchange of Certificates.

The Depositor, the Master Servicer, the Trustee, the Securities Administrator, the Servicer and any agent of the Depositor, the Master Servicer, the Trustee, the Securities Administrator or the Servicer may treat the Person in whose name this Certificate is registered as the owner hereof for all purposes, and none of the Depositor, the Master Servicer, the Trustee, the Securities Administrator, the Servicer nor any such agent shall be affected by notice to the contrary.

The obligations created by the Agreement and the Trust Fund created thereby shall terminate upon payment to the Certificateholders of all amounts held by the Securities Administrator and required to be paid to them pursuant to the Agreement following the earlier of (i) the final payment or other liquidation (or any advance with respect thereto) of the last Mortgage Loan remaining in REMIC I and (ii) the purchase by the party designated in the Agreement at a price determined as provided in the Agreement from REMIC I of all the Mortgage Loans and all property acquired in respect of such Mortgage Loans. The Agreement permits, but does not require, the party designated in the Agreement to purchase from REMIC I all the Mortgage Loans and all property acquired in respect of any Mortgage Loan at a price determined as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to the aggregate Scheduled Principal Balance of the Mortgage Loans (and properties acquired in respect thereof) at the time 

 

of purchase being less than or equal to (i) 10% of the aggregate Scheduled Principal Balance of the Mortgage Loans as of the Cut-off Date with respect to the exercise of the optional termination right by the Servicer and (ii) 5% of the aggregate Scheduled Principal Balance of the Mortgage Loans as of the Cut-off Date with respect to the exercise of the optional termination right by the Master Servicer.

The recitals contained herein shall be taken as statements of the Depositor and neither the Trustee nor the Securities Administrator assume any responsibility for their correctness.

Unless the certificate of authentication hereon has been executed by the Securities Administrator, by manual signature, this Certificate shall not be entitled to any benefit under the Agreement or be valid for any purpose.

 

 

IN WITNESS WHEREOF, the Securities Administrator has caused this Certificate to be duly executed.

Dated:

	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            WELLS FARGO BANK, N.A.
 as Securities Administrator
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Authorized Officer
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 

 

 

CERTIFICATE OF AUTHENTICATION

This is one of the Class [R][R-X] Certificates referred to in the within-mentioned Agreement.

	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            WELLS FARGO BANK, N.A.
 as Securities Administrator
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Authorized Signatory
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 

 

 

 

 

 

 

ABBREVIATIONS

The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations:

	
            TEN  COM    -
  	
            as tenants in common
  	
            UNIF GIFT MIN ACT -
  	
                  Custodian       

(Cust)         (Minor)

under Uniform Gifts 

to Minors Act
  
	
            TEN ENT      -
 	
            as tenants by the entireties
 	
             
 	
            ________________

(State)
 
	
            JT TEN         -
 	
            as joint tenants with right 

if survivorship and not as 

tenants in common
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 
	
            Additional abbreviations may also be used though not in the above list.
 

 

ASSIGNMENT

	
            FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) 
 
	
            unto
 	
             
 
	
             
 	
             
 
	
             
 	
             
 

(Please print or typewrite name, address including postal zip code, and Taxpayer Identification Number of assignee)

a Percentage Interest equal to _____% evidenced by the within Asset Backed Pass-Through Certificate and hereby authorize(s) the registration of transfer of such interest to assignee on the Certificate Register of the Trust Fund.

I (we) further direct the Securities Administrator to issue a new Certificate of a like Percentage Interest and Class to the above named assignee and deliver such Certificate to the following address: 

	 	 	 
	
             
 	
             
 	
            .
 

 

	
            Dated:
 	
            
 
 
 
	
             
 	
            Signature by or on behalf of assignor
 
	
             
 	
             
 
	
             
 	
            
 
 
 
	
             
 	
            Signature Guaranteed
 

 

 

DISTRIBUTION INSTRUCTIONS

The assignee should include the following for purposes of distribution:

	
            Distributions shall be made, by wire transfer or otherwise, in immediately available 
 
	
            funds to
 	
             
 
	
             
 
	
            for the account of
 	
             
 
	
            account number
 	
             
 	
            or, if mailed by check, to
 
	
             
 
	
            Applicable statements should be mailed to
 	
             
 
	
             
 
	
             
 
	
            This information is provided by
 	
             
 
	
            assignee named above, or
 	
             
 
	
            its agent.
 	
             
 
								

 

 

 

 

EXHIBIT B-1

FORM OF TRANSFEROR REPRESENTATION LETTER

[Date]

Wells Fargo Bank, N.A.

Sixth Street and Marquette Avenue

Minneapolis, Minnesota 55479

Attention: Corporate Trust ACE 2005-AG1

	
            Re:
 	
            ACE Securities Corp. Home Equity Loan Trust, Series 2005-AG1 Asset Backed Pass-Through Certificates

Class CE, Class P, Class R and Class R-X Certificates
 

 

Ladies and Gentlemen:

In connection with the transfer by ______________________ (the “Transferor”) to ___________________ (the “Transferee”) of the captioned mortgage pass-through certificates (the “Certificates”), the Transferor hereby certifies as follows:

Neither the Transferor nor anyone acting on its behalf has (a) offered, pledged, sold, disposed of or otherwise transferred any Certificate, any interest in any Certificate or any other similar security to any person in any manner, (b) has solicited any offer to buy or to accept a pledge, disposition or other transfer of any Certificate, any interest in any Certificate or any other similar security from any person in any manner, (c) has otherwise approached or negotiated with respect to any Certificate, any interest in any Certificate or any other similar security with any person in any manner, (d) has made any general solicitation by means of general advertising or in any other manner, (e) has taken any other action, that (in the case of each of subclauses (a) through (e) above) would constitute a distribution of the Certificates under the Securities Act of 1933, as amended (the
“1933 Act”), or would render the disposition of any Certificate a violation of Section 5 of the 1933 Act or any state securities law or would require registration or qualification pursuant thereto. The Transferor will not act, nor has it authorized or will it authorize any person to act, in any manner set forth in the foregoing sentence with respect to any Certificate. The Transferor will not sell or otherwise transfer any of the Certificates, except in compliance with the provisions of that certain Pooling and Servicing Agreement, dated as of October 1, 2005, among ACE Securities Corp. as Depositor, Wells Fargo Bank, N.A. as Master Servicer and Securities Administrator, Litton Loan Servicing LP as Servicer, and HSBC Bank USA, National Association as trustee (the “Pooling and Servicing Agreement”), pursuant to which Pooling and Servicing Agreement the Certificates were issued.

 

 

Capitalized terms used but not defined herein shall have the meanings assigned thereto in the Pooling and Servicing Agreement.

	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Very truly yours,
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            [Transferor]
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Name:
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Title:
 

 

 

 

FORM OF TRANSFEREE REPRESENTATION LETTER

	
            [Date]
 

Wells Fargo Bank, N.A.

Sixth Street and Marquette Avenue

Minneapolis, Minnesota 55479

Attention: Corporate Trust ACE 2005-AG1

	
            Re:
 	
            ACE Securities Corp. Home Equity Loan Trust, Series 2005-AG1 

Asset Backed Pass-Through Certificates 

Class CE, Class P, Class R and Class R-X Certificates
 

Ladies and Gentlemen:

In connection with the purchase from ______________________________ (the “Transferor”) on the date hereof of the captioned trust certificates (the “Certificates”), (the “Transferee”) hereby certifies as follows:

1.          The Transferee is a “qualified institutional buyer” as that term is defined in Rule 144A (“Rule 144A”) under the Securities Act of 1933 (the “1933 Act”) and has completed either of the forms of certification to that effect attached hereto as Annex 1 or Annex 2. The Transferee is aware that the sale to it is being made in reliance on Rule 144A. The Transferee is acquiring the Certificates for its own account or for the account of a qualified institutional buyer, and understands that such Certificate may be resold, pledged or transferred only (i) to a person reasonably believed to be a qualified institutional buyer that purchases for its own account or for the account of a qualified institutional buyer to whom notice is given that the resale, pledge or transfer is being made in
reliance on Rule 144A, or (ii) pursuant to another exemption from registration under the 1933 Act.

2.          The Transferee has been furnished with all information regarding (a) the Certificates and distributions thereon, (b) the nature, performance and servicing of the Mortgage Loans, (c) the Pooling and Servicing Agreement referred to below, and (d) any credit enhancement mechanism associated with the Certificates, that it has requested.

3.          The Transferee: (a) is not an employee benefit plan or other plan subject to the prohibited transaction provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”) (each, a “Plan”), or any other person (including an investment manager, a named fiduciary or a trustee of any Plan) acting, directly or indirectly, on behalf of or purchasing any Certificate with “plan assets” of any Plan within the meaning of the Department of Labor (“DOL”) regulation at 29 C.F.R. § 2510.3-101 or (b) has provided the Securities Administrator  with an opinion of counsel on which the Trustee, the Depositor, the Master Servicer, the Securities Administrator and the Servicer may rely, 

 

acceptable to and in form and substance satisfactory to the Trustee to the effect that the purchase of Certificates is permissible under applicable law, will not constitute or result in any non-exempt prohibited transaction under ERISA or Section 4975 of the Code and will not subject the Trust Fund, the Trustee, the Depositor, the Master Servicer, the Securities Administrator or the Servicer to any obligation or liability (including obligations or liabilities under ERISA or Section 4975 of the Code) in addition to those undertaken in the Pooling and Servicing Agreement.

 

In addition, the Transferee hereby certifies, represents and warrants to, and covenants with, the Depositor, the Trustee, the Securities Administrator, the Master Servicer and the Servicer that the Transferee will not transfer such Certificates to any Plan or person unless such Plan or person meets the requirements set forth in paragraph 3 above.

All capitalized terms used but not otherwise defined herein have the respective meanings assigned thereto in the Pooling and Servicing Agreement, dated as of October 1, 2005, among ACE Securities Corp. as Depositor, Wells Fargo Bank, N.A. as Master Servicer and Securities Administrator, Litton Loan Servicing LP as Servicer and HSBC Bank USA, National Association as Trustee, pursuant to which the Certificates were issued.

	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            [TRANSFEREE]
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Name:
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Title:
 

 

 

ANNEX 1 TO EXHIBIT B-1

QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

[For Transferees Other Than Registered Investment Companies]

The undersigned hereby certifies as follows to [name of Transferor] (the “Transferor”) and Wells Fargo Bank, N.A., as Securities Administrator, with respect to the asset backed pass-through certificates (the “Certificates”) described in the Transferee Certificate to which this certification relates and to which this certification is an Annex:

1.          As indicated below, the undersigned is the President, Chief Financial Officer, Senior Vice President or other executive officer of the entity purchasing the Certificates (the “Transferee”).

2.          In connection with purchases by the Transferee, the Transferee is a “qualified institutional buyer” as that term is defined in Rule 144A under the Securities Act of 1933 (“Rule 144A”) because (i) the Transferee owned and/or invested on a discretionary basis $________________1 in securities (except for the excluded securities referred to below) as of the end of the Transferee’s most recent fiscal year (such amount being calculated in accordance with Rule 144A) and (ii) the Transferee satisfies the criteria in the category marked below.

	
            ___
 	
            Corporation, etc. The Transferee is a corporation (other than a bank, savings and loan association or similar institution), Massachusetts or similar business trust, partnership, or any organization described in Section 501(c)(3) of the Internal Revenue Code of 1986.
 
	
            ___
 	
            Bank. The Transferee (a) is a national bank or banking institution organized under the laws of any State, territory or the District of Columbia, the business of which is substantially confined to banking and is supervised by the State or territorial banking commission or similar official or is a foreign bank or equivalent institution, and (b) has an audited net worth of at least $25,000,000 as demonstrated in its latest annual financial statements, a copy of which is attached hereto.
 
	
            ___
 	
            Savings and Loan. The Transferee (a) is a savings and loan association, building and loan association, cooperative bank, homestead association or similar institution, which is supervised and examined by a State or Federal authority having supervision over any such institutions or is a foreign savings and loan association or equivalent institution and (b) has an audited net worth of at least $25,000,000 as demonstrated in its latest annual financial statements, a copy of which is attached hereto.
 

_________________________

1               Transferee must own and/or invest on a discretionary basis at least $100,000,000 in securities unless Transferee is a dealer, and, in that case, Transferee must own and/or invest on a discretionary basis at least $10,000,000 in securities.

 

 

 

 

 

	
            ___
 	
            Broker-dealer. The Transferee is a dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934.
 
	
            ___
 	
            Insurance Company. The Transferee is an insurance company whose primary and predominant business activity is the writing of insurance or the reinsuring of risks underwritten by insurance companies and which is subject to supervision by the insurance commissioner or a similar official or agency of a State, territory or the District of Columbia.
 
	
            ___
 	
            State or Local Plan. The Transferee is a plan established and maintained by a State, its political subdivisions, or any agency or instrumentality of the State or its political subdivisions, for the benefit of its employees.
 
	
            ___
 	
            ERISA Plan. The Transferee is an employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974.
 
	
            ___
 	
            Investment Advisor  The Transferee is an investment advisor registered under the Investment Advisers Act of 1940.
 

 

3.          The term “securities” as used herein does not include (i) securities of issuers that are affiliated with the Transferee, (ii) securities that are part of an unsold allotment to or subscription by the Transferee, if the Transferee is a dealer, (iii) securities issued or guaranteed by the U.S. or any instrumentality thereof, (iv) bank deposit notes and certificates of deposit, (v) loan participations, (vi) repurchase agreements, (vii) securities owned but subject to a repurchase agreement and (viii) currency, interest rate and commodity swaps.

4.          For purposes of determining the aggregate amount of securities owned and/or invested on a discretionary basis by the Transferee, the Transferee used the cost of such securities to the Transferee and did not include any of the securities referred to in the preceding paragraph. Further, in determining such aggregate amount, the Transferee may have included securities owned by subsidiaries of the Transferee, but only if such subsidiaries are consolidated with the Transferee in its financial statements prepared in accordance with generally accepted accounting principles and if the investments of such subsidiaries are managed under the Transferee’s direction. However, such securities were not included if the Transferee is a majority-owned, consolidated subsidiary of another enterprise and the Transferee is not itself a reporting
company under the Securities Exchange Act of 1934.

5.          The Transferee acknowledges that it is familiar with Rule 144A and understands that the Transferor and other parties related to the Certificates are relying and will continue to rely on the statements made herein because one or more sales to the Transferee may be in reliance on Rule 144A.

	___
	___
	Will the Transferee be purchasing the Certificates
	Yes
	No
	
            only for the Transferee’s own account?
 

 

 

 

6.          If the answer to the foregoing question is “no”, the Transferee agrees that, in connection with any purchase of securities sold to the Transferee for the account of a third party (including any separate account) in reliance on Rule 144A, the Transferee will only purchase for the account of a third party that at the time is a “qualified institutional buyer” within the meaning of Rule 144A. In addition, the Transferee agrees that the Transferee will not purchase securities for a third party unless the Transferee has obtained a current representation letter from such third party or taken other appropriate steps contemplated by Rule 144A to conclude that such third party independently meets the definition of “qualified institutional buyer” set forth in Rule 144A.

7.          The Transferee will notify each of the parties to which this certification is made of any changes in the information and conclusions herein. Until such notice is given, the Transferee’s purchase of the Certificates will constitute a reaffirmation of this certification as of the date of such purchase. In addition, if the Transferee is a bank or savings and loan as provided above, the Transferee agrees that it will furnish to such parties updated annual financial statements promptly after they become available.

Dated:

	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            ________________________________________________
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Print Name of Transferee
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Name:
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Title:
 

 

 

ANNEX 2 TO EXHIBIT B-1

QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

[For Transferees That Are Registered Investment Companies]

The undersigned hereby certifies as follows to [name of Transferor] (the “Transferor”) and Wells Fargo Bank, N.A., as Securities Administrator, with respect to the asset backed pass-through certificates (the “Certificates”) described in the Transferee Certificate to which this certification relates and to which this certification is an Annex:

1.          As indicated below, the undersigned is the President, Chief Financial Officer or Senior Vice President of the entity purchasing the Certificates (the “Transferee”) or, if the Transferee is a “qualified institutional buyer” as that term is defined in Rule 144A under the Securities Act of 1933 (“Rule 144A”) because the Transferee is part of a Family of Investment Companies (as defined below), is such an officer of the investment adviser (the “Adviser”).

2.          In connection with purchases by the Transferee, the Transferee is a “qualified institutional buyer” as defined in Rule 144A because (i) the Transferee is an investment company registered under the Investment Company Act of 1940, and (ii) as marked below, the Transferee alone, or the Transferee’s Family of Investment Companies, owned at least $100,000,000 in securities (other than the excluded securities referred to below) as of the end of the Transferee’s most recent fiscal year. For purposes of determining the amount of securities owned by the Transferee or the Transferee’s Family of Investment Companies, the cost of such securities was used.

	
            ___
 	
            The Transferee owned $________________________ in securities (other than the excluded securities referred to below) as of the end of the Transferee’s most recent fiscal year (such amount being calculated in accordance with Rule 144A).
 
	
            ___
 	
            The Transferee is part of a Family of Investment Companies which owned in the aggregate $_______________ in securities (other than the excluded securities referred to below) as of the end of the Transferee’s most recent fiscal year (such amount being calculated in accordance with Rule 144A).
 

3.          The term “Family of Investment Companies” as used herein means two or more registered investment companies (or series thereof) that have the same investment adviser or investment advisers that are affiliated (by virtue of being majority owned subsidiaries of the same parent or because one investment adviser is a majority owned subsidiary of the other).

4.          The term “securities” as used herein does not include (i) securities of issuers that are affiliated with the Transferee or are part of the Transferee’s Family of Investment Companies, (ii) securities issued or guaranteed by the U.S. or any instrumentality thereof, (iii) bank deposit notes and certificates of deposit, (iv) loan participations, (v) repurchase agreements, (vi) securities owned but subject to a repurchase agreement and (vii) currency, interest rate and commodity swaps.

 

 

5.          The Transferee is familiar with Rule 144A and understands that the parties to which this certification is being made are relying and will continue to rely on the statements made herein because one or more sales to the Transferee will be in reliance on Rule 144A. In addition, the Transferee will only purchase for the Transferee’s own account.

6.          The undersigned will notify the parties to which this certification is made of any changes in the information and conclusions herein.  Until such notice, the Transferee’s purchase of the Certificates will constitute a reaffirmation of this certification by the undersigned as of the date of such purchase.

Dated:

	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            ___________________________________________
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Print Name of Transferee or Advisor
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Name:
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Title:
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            IF AN ADVISER:

 

 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            ___________________________________________
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Print Name of Transferee
 

 

 

 

FORM OF TRANSFEREE REPRESENTATION LETTER

The undersigned hereby certifies on behalf of the purchaser named below (the “Purchaser”) as follows:

	
            1.
 	
            I am an executive officer of the Purchaser.
 

2.          The Purchaser is a “qualified institutional buyer”, as defined in Rule 144A, (“Rule 144A”) under the Securities Act of 1933, as amended.

3.          As of the date specified below (which is not earlier than the last day of the Purchaser’s most recent fiscal year), the amount of “securities”, computed for purposes of Rule 144A, owned and invested on a discretionary basis by the Purchaser was in excess of $100,000,000.

	
            Name of Purchaser 
 	
             
 
	
             
 	
             
 
	
            By: (Signature)  
 	
             
 
	
             
 	
             
 
	
            Name of Signatory  
 	
             
 
	
             
 	
             
 
	
            Title  
 	
             
 
	
             
 	
             
 
	
            Date of this certificate  
 	
             
 
	
             
 	
             
 
	
            Date of information provided in paragraph 3  
 	
             
 
						

 

 

 

ANNEX A TO EXHIBIT B-1  

FORM OF REGULATION S TRANSFER CERTIFICATE

[Date]

 

Wells Fargo Bank, N.A.

Sixth Street and Marquette Avenue

Minneapolis, Minnesota 55479

Attention: Corporate Trust ACE 2005-AG1

	
            Re:
 	
            ACE Securities Corp. Home Equity Loan Trust, Series 2005-AG1 Asset Backed Pass-Through Certificates, Class B-1, Class B-2, Class B-3, Class B-4, Class B-5, Class CE and/or Class P Certificates     
 

Ladies and Gentlemen:

Reference is hereby made to the Pooling and Servicing Agreement (the “Agreement”), dated as of October 1, 2005, among ACE Securities Corp. (the “Depositor”), Wells Fargo Bank, N.A., as master servicer and securities administrator (the “Master Servicer”), Litton Loan Servicing LP as servicer (the “Servicer”) and HSBC Bank USA, National Association, as trustee (the “Trustee”).  Capitalized terms used herein but not defined herein shall have the meanings assigned thereto in the Agreement.

This letter relates to U.S. $[__________] Certificate Principal Balance of Class [B-[1][2][3][4][5][CE][P] Certificates (the “Certificates”) which are held in the name of [name of transferor] (the “Transferor”) to effect the transfer of the Certificates to a person who wishes to take delivery thereof in the form of an equivalent beneficial interest [name of transferee] (the “Transferee”).

In connection with such request, the Transferor hereby certifies that such transfer has been effected in accordance with the transfer restrictions set forth in the Agreement and the private placement memorandum dated October 25, 2005 relating to the Certificates and that the following additional requirements (if applicable) were satisfied:

	
            (a)
 	
            the offer of the Certificates was not made to a person in the United States;
 

(b)        at the time the buy order was originated, the Transferee was outside the United States or the Transferor and any person acting on its behalf reasonably believed that the Transferee was outside the United States;

(c)        no directed selling efforts were made in contravention of the requirements of Rule 903(b) or 904(b) of Regulation S, as applicable;

(d)        the transfer or exchange is not part of a plan or scheme to evade the registration requirements of the Securities Act;

 

 

(e)        the Transferee is not a U.S. Person, as defined in Regulation S under the Securities Act;

(f)         the transfer was made in accordance with the applicable provisions of Rule 903(b)(2) or (3) or Rule 904(b)(1), as the case may be; and

(g)        the Transferee understands that the Certificates have not been and will not be registered under the Securities Act, that any offers, sales or deliveries of the Certificates purchased by the Transferee in the United States or to U.S. persons prior to the date that is 40 days after the later of (i) the commencement of the offering of the Certificates and (ii) the Closing Date, may constitute a violation of United States law, and that (x) distributions of principal and interest and (y) the exchange of beneficial interests in a Temporary Regulation S Global Certificate for beneficial interests in the related Permanent Regulation S Global Certificate, in each case, will be made in respect of such Certificates only following the delivery by the Holder of a certification of non-U.S. beneficial ownership, at the times and in the manner set forth
in the Agreement.

 

 

You are entitled to rely upon this letter and are irrevocably authorized to produce this letter or a copy hereof to any interested party in any administrative or legal proceedings or official inquiry with respect to the matters covered hereby.

	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            [Name of Transferor]
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Name:
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Title:
 

 

 

 

EXHIBIT B-2

FORM OF TRANSFEROR REPRESENTATION LETTER

	
            ____________, 20__
 

 

Wells Fargo Bank, N.A.

Sixth Street and Marquette Avenue

Minneapolis, Minnesota 55479

Attention: Corporate Trust ACE 2005-AG1

	
            Re:
 	
            ACE Securities Corp. Home Equity Loan Trust, Series 2005-AG1 

Asset Backed Pass-Through Certificates, 

Class CE, Class P, Class R and Class R-X Certificates
 

Ladies and Gentlemen:

In connection with the transfer by ________________ (the “Transferor”) to __________________________ (the “Transferee”) of the captioned mortgage pass-through certificates (the “Certificates”), the Transferor hereby certifies as follows:

Neither the Seller nor anyone acting on its behalf has (a) offered, pledged, sold, disposed of or otherwise transferred any Certificate, any interest in any Certificate or any other similar security to any person in any manner, (b) has solicited any offer to buy or to accept a pledge, disposition or other transfer of any Certificate, any interest in any Certificate or any other similar security from any person in any manner, (c) has otherwise approached or negotiated with respect to any Certificate, any interest in any Certificate or any other similar security with any person in any manner, (d) has made any general solicitation by means of general advertising or in any other manner, or (e) has taken any other action, that (as to any of (a) through (e) above) would constitute a distribution of the Certificates under the Securities Act of 1933 (the “Act’), that would render the
disposition of any Certificate a violation of Section 5 of the Act or any state securities law, or that would require registration or qualification pursuant thereto. The Seller will not act, in any manner set forth in the foregoing sentence with respect to any Certificate. The Seller has not and will not sell or otherwise transfer any of the Certificates, except in compliance with the provisions of the Pooling and Servicing Agreement.

	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Very truly yours,
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            _____________________________________________
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            (Transferor)
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Name:
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Title:
 

 

 

 

FORM OF TRANSFEREE LETTER

 

	
            _______________, 20__
 

Wells Fargo Bank, N.A.

Sixth Street and Marquette Avenue

Minneapolis, Minnesota 55479

Attention: Corporate Trust ACE 2005-AG1

	
            Re:
 	
            ACE Securities Corp. Home Equity Loan Trust, Series 2005-AG1 

Asset Backed Pass-Through Certificates, 

Class CE, Class P, Class R and Class R-X Certificates
 

Ladies and Gentlemen:

In connection with the transfer by ______________________ (the “Transferor”) to __________________________ (the “Transferee”) of the captioned mortgage pass-through certificates (the “Certificates”), the Transferee hereby certifies as follows:

1.          The Transferee understands that (a) the Certificates have not been and will not be registered or qualified under the Securities Act of 1933, as amended (the “Act”) or any state securities law, (b) the Depositor is not required to so register or qualify the Certificates, (c) the Certificates may be resold only if registered and qualified pursuant to the provisions of the Act or any state securities law, or if an exemption from such registration and qualification is available, (d) the Pooling and Servicing Agreement contains restrictions regarding the transfer of the Certificates and (e) the Certificates will bear a legend to the foregoing effect.

2.          The Transferee is acquiring the Certificates for its own account for investment only and not with a view to or for sale in connection with any distribution thereof in any manner that would violate the Act or any applicable state securities laws.

3.          The Transferee is (a) a substantial, sophisticated institutional investor having such knowledge and experience in financial and business matters, and, in particular, in such matters related to securities similar to the Certificates, such that it is capable of evaluating the merits and risks of investment in the Certificates, (b) able to bear the economic risks of such an investment and (c) an “accredited investor” within the meaning of Rule 501(a) promulgated pursuant to the Act.

4.          The Transferee has been furnished with, and has had an opportunity to review (a) a copy of the Pooling and Servicing Agreement and (b) such other information concerning the Certificates, the Mortgage Loans and the Depositor as has been requested by the Transferee from the Depositor or the Transferor and is relevant to the Transferee’s decision to purchase the Certificates. The Transferee has had any questions arising from such review answered by the Depositor or the Transferor to the satisfaction of the Transferee.

 

 

5.          The Transferee has not and will not nor has it authorized or will it authorize any person to (a) offer, pledge, sell, dispose of or otherwise transfer any Certificate, any interest in any Certificate or any other similar security to any person in any manner, (b) solicit any offer to buy or to accept a pledge, disposition of other transfer of any Certificate, any interest in any Certificate or any other similar security from any person in any manner, (c) otherwise approach or negotiate with respect to any Certificate, any interest in any Certificate or any other similar security with any person in any manner, (d) make any general solicitation by means of general advertising or in any other manner or (e) take any other action, that (as to any of (a) through (e) above) would constitute a distribution of any
Certificate under the Act, that would render the disposition of any Certificate a violation of Section 5 of the 1933 Act or any state securities law, or that would require registration or qualification pursuant thereto. The Transferee will not sell or otherwise transfer any of the Certificates, except in compliance with the provisions of the Pooling and Servicing Agreement.

6.          The Transferee: (a) is not an employee benefit plan or other plan subject to the prohibited transaction provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”) (each, a “Plan”), or any other person (including an investment manager, a named fiduciary or a trustee of any Plan) acting, directly or indirectly, on behalf of or purchasing any Certificate with “plan assets” of any Plan within the meaning of the Department of Labor (“DOL”) regulation at 29 C.F.R. § 2510.3-101 or (b) has provided the Trustee with an opinion of counsel on which the Depositor, the Master Servicer, the Securities Administrator, the Trustee and the Servicer may rely,
acceptable to and in form and substance satisfactory to the Trustee to the effect that the purchase of Certificates is permissible under applicable law, will not constitute or result in any non-exempt prohibited transaction under ERISA or Section 4975 of the Code and will not subject the Trust Fund, the Trustee, the Master Servicer, the Securities Administrator, the Depositor or the Servicer to any obligation or liability (including obligations or liabilities under ERISA or Section 4975 of the Code) in addition to those undertaken in the Pooling and Servicing Agreement.

In addition, the Transferee hereby certifies, represents and warrants to, and covenants with, the Depositor, the Trustee, the Securities Administrator, the Master Servicer and the Servicer that the Transferee will not transfer such Certificates to any Plan or person unless such Plan or person meets the requirements set forth in paragraph 6 above.

	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Very truly yours,
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Name:
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Title:
 	
             
 

 

 

EXHIBIT B-3

TRANSFER AFFIDAVIT AND AGREEMENT

	
            STATE OF NEW YORK
 	
            )
 	
             
 
	
             
 	
            )
 	
            ss.:
 
	
            COUNTY OF NEW YORK
 	
            )
 	
             
 

___________________________ being duly sworn, deposes, represents and warrants as follows:

	
            1.
 	
            I am a _____________________ of _______________________________ (the “Owner”) a corporation duly organized and existing under the laws of _________________________, the record owner of ACE Securities Corp. Home Equity Loan Trust, Series 2005-AG1 Asset Backed Pass-Through Certificates, Class [R][R-X] Certificates (the “Class [R][R-X] Certificates”), on behalf of whom I make this affidavit and agreement. Capitalized terms used but not defined herein have the respective meanings assigned thereto in the Pooling and Servicing Agreement pursuant to which the Class [R][R-X] Certificates were issued.
 
	
            2.
 	
            The Owner (i) is and will be a “Permitted Transferee” as of ____________________. ____ and (ii) is acquiring the Class [R][R-X] Certificates for its own account or for the account of another Owner from which it has received an affidavit in substantially the same form as this affidavit. A “Permitted Transferee” is any person other than a “disqualified organization” or a possession of the United States.  For this purpose, a “disqualified organization” means the United States, any state or political subdivision thereof, any agency or instrumentality of any of the foregoing (other than an instrumentality all of the activities of which are subject to tax and, except for the Federal Home Loan Mortgage Corporation, a majority of whose board of directors is not selected by any such governmental
entity) or any foreign government, international organization or any agency or instrumentality of such foreign government or organization, any real electric or telephone cooperative, or any organization (other than certain farmers’ cooperatives) that is generally exempt from federal income tax unless such organization is subject to the tax on unrelated business taxable income.
 
	
            3.
 	
            The Owner is aware (i) of the tax that would be imposed on transfers of the Class [R][R-X] Certificates to disqualified organizations under the Internal Revenue Code of 1986 that applies to all transfers of the Class [R][R-X] Certificates after April 31, 1988; (ii) that such tax would be on the transferor or, if such transfer is through an agent (which person includes a broker, nominee or middleman) for a non-Permitted Transferee, on the agent; (iii) that the person otherwise liable for the tax shall be relieved of liability for the tax if the transferee furnishes to such person an affidavit that the transferee is a Permitted Transferee and, at the time of transfer, such person does not have actual knowledge that the affidavit is false; and (iv) that each of the Class [R][R-X] Certificates may be a “noneconomic residual
interest”  within the meaning of proposed Treasury regulations 
 

 

promulgated under the Code and that the transferor of a “noneconomic residual interest” will remain liable for any taxes due with respect to the income on such residual interest, unless no significant purpose of the transfer is to impede the assessment or collection of tax.

	
            4.
 	
            The Owner is aware of the tax imposed on a “pass-through entity” holding the Class [R][R-X] Certificates if, at any time during the taxable year of the pass-through entity, a non-Permitted Transferee is the record holder of an interest in such entity. (For this purpose, a “pass-through entity” includes a regulated investment company, a real estate investment trust or common trust fund, a partnership, trust or estate, and certain cooperatives.)
 
	
            5.
 	
            The Owner is aware that the Securities Administrator will not register the transfer of any Class [R][R-X] Certificate unless the transferee, or the transferee’s agent, delivers to the Securities Administrator, among other things, an affidavit in substantially the same form as this affidavit. The Owner expressly agrees that it will not consummate any such transfer if it knows or believes that any of the representations contained in such affidavit and agreement are false.
 
	
            6.
 	
            The Owner consents to any additional restrictions or arrangements that shall be deemed necessary upon advice of counsel to constitute a reasonable arrangement to ensure that the Class [R][R-X] Certificates will only be owned, directly or indirectly, by an Owner that is a Permitted Transferee.
 

	
            7.
 	
            The Owner’s taxpayer identification number is ________________.
 

	
            8.
 	
            The Owner has reviewed the restrictions set forth on the face of the Class [R][R-X] Certificates and the provisions of Section 6.02(d) of the Pooling and Servicing Agreement under which the Class [R][R-X] Certificates were issued (in particular, clauses (iii)(A) and (iii)(B) of Section 6.02(d) which authorize the Securities Administrator to deliver payments to a person other than the Owner and negotiate a mandatory sale by the Securities Administrator in the event that the Owner holds such Certificate in violation of Section 6.02(d)); and that the Owner expressly agrees to be bound by and to comply with such restrictions and provisions.
 
	
            9.
 	
            The Owner is not acquiring and will not transfer the Class [R][R-X] Certificates in order to impede the assessment or collection of any tax.
 
	
            10.
 	
  The Owner anticipates that it will, so long as it holds the Class [R][R-X] Certificates, have sufficient assets to pay any taxes owed by the holder of such Class [R][R-X] Certificates, and hereby represents to and for the benefit of the person from whom it acquired the Class [R][R-X] Certificates that the Owner intends to pay taxes associated with holding such Class [R][R-X] Certificates as they become due, fully understanding that it may incur tax liabilities in excess of any cash flows generated by the Class [R][R-X] Certificates.
 

 

 

 

	
            11.
 	
            The Owner has no present knowledge that it may become insolvent or subject to a bankruptcy proceeding for so long as it holds the Class [R][R-X] Certificates.
 
	
            12.
 	
            The Owner has no present knowledge or expectation that it will be unable to pay any United States taxes owed by it so long as any of the Certificates remain outstanding.
 
	
            13.
 	
            The Owner is not acquiring the Class [R][R-X] Certificates with the intent to transfer the Class [R][R-X] Certificates to any person or entity that will not have sufficient assets to pay any taxes owed by the holder of such Class [R][R-X] Certificates, or that may become insolvent or subject to a bankruptcy proceeding, for so long as the Class [R][R-X] Certificates remain outstanding.
 
	
            14.
 	
            The Owner will, in connection with any transfer that it makes of the Class [R][R-X] Certificates, obtain from its transferee the representations required by Section 6.02(d) of the Pooling and Servicing Agreement under which the Class [R][R-X] Certificate were issued and will not consummate any such transfer if it knows, or knows facts that should lead it to believe, that any such representations are false.
 
	
            15.
 	
            The Owner will, in connection with any transfer that it makes of the Class [R][R-X] Certificates, deliver to the Securities Administrator an affidavit, which represents and warrants that it is not transferring the Class [R][R-X] Certificates to impede the assessment or collection of any tax and that it has no actual knowledge that the proposed transferee: (i) has insufficient assets to pay any taxes owed by such transferee as holder of the Class [R][R-X] Certificates; (ii) may become insolvent or subject to a bankruptcy proceeding for so long as the Class [R][R-X] Certificates remains outstanding; and (iii) is not a “Permitted Transferee”.
 
	
            16.
 	
            The Owner is a citizen or resident of the United States, a corporation, partnership or other entity created or organized in, or under the laws of, the United States or any political subdivision thereof, or an estate or trust whose income from sources without the United States may be included in gross income for United States federal income tax purposes regardless of its connection with the conduct of a trade or business within the United States.
 
	
            17.
 	
            The Owner of the Class [R][R-X] Certificate, hereby agrees that in the event that the Trust Fund created by the Pooling and Servicing Agreement is terminated pursuant to Section 10.01 thereof, the undersigned shall assign and transfer to the Holders of the Class CE and the Class P Certificates any amounts in excess of par received in connection with such termination. Accordingly, in the event of such termination, the Securities Administrator is hereby authorized to withhold any such amounts in excess of par and to pay such amounts directly to the Holders of the Class CE and the Class P Certificates. This agreement shall bind and be enforceable against any successor, transferee or assigned of the undersigned in the Class [R][R-X] Certificate. In connection with any transfer of the Class [R][R-X] 
 

 

Certificate, the Owner shall obtain an agreement substantially similar to this clause from any subsequent owner.

 

 

IN WITNESS WHEREOF, the Owner has caused this instrument to be executed on its behalf, pursuant to the authority of its Board of Directors, by its [Vice] President, attested by its [Assistant] Secretary, this ____ day of _________________, ____.

	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            [OWNER]
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Name:
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Title: [Vice] President
 

 

ATTEST:

	
            By:
 	
            
 
 
 
	
             
 	
            Name:
 
	
             
 	
            Title: [Assistant] Secretary
 

 

Personally appeared before me the above-named __________________, known or proved to me to be the same person who executed the foregoing instrument and to be a [Vice] President of the Owner, and acknowledged to me that [he/she] executed the same as [his/her] free act and deed and the free act and deed of the Owner.

Subscribed and sworn before me this ______________ day of __________, ____.

 

 

	
             
 	
            
 
 
 
	
             
 	
            Notary Public
 
	
             
 	
             
 
	
             
 	
            County of ________________________________
 
	
             
 	
            State of __________________________________
 
	
             
 	
             
 
	
             
 	
            My Commission expires:
 

 

 

 

 

FORM OF TRANSFEROR AFFIDAVIT

	
            STATE OF NEW YORK
 	
            )
 	
             
 
	
             
 	
            )
 	
            ss.:
 
	
            COUNTY OF NEW YORK
 	
            )
 	
             
 

_________________________, being duly sworn, deposes, represents and warrants as follows:

1.          I am a  ____________________ of _________________________ (the “Owner”), a corporation duly organized and existing under the laws of _____________, on behalf of whom I make this affidavit.

2.          The Owner is not transferring the Class [R][R-X] Certificates (the “Residual Certificates”) to impede the assessment or collection of any tax.

3.          The Owner has no actual knowledge that the Person that is the proposed transferee (the “Purchaser”) of the Residual Certificates:  (i) has insufficient assets to pay any taxes owed by such proposed transferee as holder of the Residual Certificates; (ii) may become insolvent or subject to a bankruptcy proceeding for so long as the Residual Certificates remain outstanding and (iii) is not a Permitted Transferee.

4.          The Owner understands that the Purchaser has delivered to the Trustee or a transfer affidavit and agreement in the form attached to the Pooling and Servicing Agreement as Exhibit B-2. The Owner does not know or believe that any representation contained therein is false.

5.          At the time of transfer, the Owner has conducted a reasonable investigation of the financial condition of the Purchaser as contemplated by Treasury Regulations Section 1.860E-1(c)(4)(i) and, as a result of that investigation, the Owner has determined that the Purchaser has historically paid its debts as they became due and has found no significant evidence to indicate that the Purchaser will not continue to pay its debts as they become due in the future. The Owner understands that the transfer of a Residual Certificate may not be respected for United States income tax purposes (and the Owner may continue to be liable for United States income taxes associated therewith) unless the Owner has conducted such an investigation.

6.          Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Pooling and Servicing Agreement.

 

 

 

IN WITNESS WHEREOF, the Owner has caused this instrument to be executed on its behalf, pursuant to the authority of its Board of Directors, by its [Vice] President, attested by its [Assistant] Secretary, this ____ day of ________________, ____.

	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            [OWNER]
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Name:
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            Title: [Vice] President
 

 

ATTEST:

 

 

	
            By:
 	
            
 
 
 
	
             
 	
            Name:
 
	
             
 	
            Title: [Assistant] Secretary
 

 

Personally appeared before me the above-named _________________, known or proved to me to be the same person who executed the foregoing instrument and to be a [Vice] President of the Owner, and acknowledged to me that [he/she] executed the same as [his/her] free act and deed and the free act and deed of the Owner.

Subscribed and sworn before me this ______ day of _____________, ____.

 

	
             
 	
            
 
 
 
	
             
 	
            Notary Public
 
	
             
 	
             
 
	
             
 	
            County of _____________________________
 
	
             
 	
            State of _______________________________
 
	
             
 	
             
 
	
             
 	
            My Commission expires:
 

 

 

 

 

 

EXHIBIT C

 

FORM OF SERVICER CERTIFICATION

	
            Re:
 	
            __________ (the “Trust”)
 	
             

	
             
	
            Mortgage Pass-Through Certificates, Series 2005-AG1
 
				

I, [identify the certifying individual], certify to ACE Securities Corp. (the “Depositor”), HSBC Bank USA, National Association (the “Trustee”) and Wells Fargo Bank, National Association (the “Master Servicer”), and their respective officers, directors and affiliates, and with the knowledge and intent that they will rely upon this certification, that:

	
            1.
 	
            Based on my knowledge, the information in the Annual Statement of Compliance, the Annual Independent Public Accountant’s Servicing Report and all servicing reports, officer’s certificates and other information relating to the servicing of the Mortgage Loans submitted to the Master Servicer taken as a whole, does not contain any untrue statement of a material fact or omit to state a material fact (constituting information required to be provided by Litton Loan Servicing LP as Servicer (the “Servicer”) under the Agreement) necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading as of the date of this certification.
 
	
            2.
 	
            Based on my knowledge, the servicing information required to be provided to Master Servicer by the Servicer under the Agreement has been provided to the Master Servicer.
 
	
            3.
 	
            I am responsible for reviewing the activities performed by the Servicer under the Agreement and based upon my knowledge and the review required by the Agreement, and except as disclosed in the Annual Statement of Compliance or the Annual Independent Public Accountant’s Servicing Report submitted to the Master Servicer, the Servicer has fulfilled its obligations under the Agreement; and
 
	
            4.
 	
            I have disclosed to the Master Servicer all significant deficiencies relating to the Servicer’s compliance with the minimum servicing standards in accordance with a review conducted in compliance with the Uniform Single Attestation Program for Mortgage Bankers or similar standard as set forth in the Pooling and Servicing Agreement.
 

Capitalized terms used and not otherwise defined herein have the meanings assigned thereto in the Pooling and Servicing Agreement, dated as of October 1, 2005, among ACE Securities Corp., Litton Loan Servicing LP, Wells Fargo Bank, National Association and HSBC Bank USA, National Association.

 

 

 

 

	
            Date:
 	
             
 
	
             
 
	
             
 
	
            [Signature]

 
 
	
             
 
	
            [Title]
 

 

 

 

 

EXHIBIT D

 

FORM OF POWER OF ATTORNEY

 

RECORDING REQUESTED BY

AND WHEN RECORDED MAIL TO

Litton Loan Servicing LP

4828 Loop Central Drive

	
            Houston, Texas 77081
 

 

Attn: _________________________________

 

LIMITED POWER OF ATTORNEY

 

KNOW ALL MEN BY THESE PRESENTS, that ________________, having its principal place of business at ____________________, as Trustee (the “Trustee”) pursuant to that Pooling and Servicing Agreement among ___________________ (the “Depositor”), Wells Fargo Bank, National Association, as Master Servicer and Securities Administrator, Litton Loan Servicing LP as the Servicer (the “Servicer”) and the Trustee, dated as of October 1, 2005 (the “Pooling and Servicing Agreement”), hereby constitutes and appoints the Servicer, by and through the Servicer’s officers, the Trustee’s true and lawful Attorney-in-Fact, in the Trustee’s name, place and stead and for the Trustee’s benefit, in connection with all mortgage loans serviced by the Servicer pursuant to the Pooling and Servicing Agreement for the purpose of performing all acts and executing all documents in
the name of the Trustee as may be customarily and reasonably necessary and appropriate to effectuate the following enumerated transactions in respect of any of the mortgages or deeds of trust (the “Mortgages” and the “Deeds of Trust”, respectively) and promissory notes secured thereby (the “Mortgage Notes”) for which the undersigned is acting as Trustee for various certificateholders (whether the undersigned is named therein as mortgagee or beneficiary or has become mortgagee by virtue of endorsement of the Mortgage Note secured by any such Mortgage or Deed of Trust) and for which the Servicer is acting as servicer, all subject to the terms of the Pooling and Servicing Agreement.

 

This appointment shall apply to the following enumerated transactions only:

 

	
            1.
 	
            The modification or re-recording of a Mortgage or Deed of Trust, where said modification or re-recordings is for the purpose of correcting the Mortgage or Deed of Trust to conform same to the original intent of the parties thereto or to correct title errors discovered after such title insurance was issued and said modification or re-recording, in either instance, does not adversely affect the lien of the Mortgage or Deed of Trust as insured.
 

 

	
            2.
 	
            The subordination of the lien of a Mortgage or Deed of Trust to an easement in favor of a public utility company of a government agency or unit with powers of eminent domain; this section shall include, without limitation, the execution of partial 
 

 

satisfactions/releases, partial reconveyances or the execution or requests to trustees to accomplish same.

 

	
            3.
 	
            The conveyance of the properties to the mortgage insurer, or the closing of the title to the property to be acquired as real estate owned, or conveyance of title to real estate owned.
 

 

	
            4.
 	
            The completion of loan assumption agreements.
 

 

	
            5.
 	
            The full satisfaction/release of a Mortgage or Deed of Trust or full conveyance upon payment and discharge of all sums secured thereby, including, without limitation, cancellation of the related Mortgage Note.
 

 

	
            6.
 	
            The assignment of any Mortgage or Deed of Trust and the related Mortgage Note, in connection with the repurchase of the mortgage loan secured and evidenced thereby.
 

 

	
            7.
 	
            The full assignment of a Mortgage or Deed of Trust upon payment and discharge of all sums secured thereby in conjunction with the refinancing thereof, including, without limitation, the assignment of the related Mortgage Note.
 

 

	
            8.
 	
            With respect to a Mortgage or Deed of Trust, the foreclosure, the taking of a deed in lieu of foreclosure, or the completion of judicial or non-judicial foreclosure or termination, cancellation or rescission of any such foreclosure, including, without limitation, any and all of the following acts:
 

 

	
            a.
 	
            the substitution of trustee(s) serving under a Deed of Trust, in accordance with state law and the Deed of Trust;
 

 

	
            b.
 	
            the preparation and issuance of statements of breach or non-performance;
 

 

	
            c.
 	
            the preparation and filing of notices of default and/or notices of sale;
 

 

	
            d.
 	
            the cancellation/rescission of notices of default and/or notices of sale;
 

 

	
            e.
 	
            the taking of a deed in lieu of foreclosure; and
 

 

	
            f.
 	
            the preparation and execution of such other documents and performance of such other actions as may be necessary under the terms of the Mortgage, Deed of Trust or state law to expeditiously complete said transactions in paragraphs 8.a. through 8.e., above.
 

 

The undersigned gives said Attorney-in-Fact full power and authority to execute such instruments and to do and perform all and every act and thing necessary and proper to carry into effect the power or powers granted by or under this Limited Power of Attorney as fully as the undersigned might or could do, and hereby does ratify and confirm to all that said Attorney-in-Fact shall lawfully do or cause to be done by authority hereof.  

 

 

Third parties without actual notice may rely upon the exercise of the power granted under this Limited Power of attorney; and may be satisfied that this Limited Power of Attorney shall continue in full force and effect and has not been revoked unless an instrument of revocation has been made in writing by the undersigned.

 

IN WITNESS WHEREOF, ________________ as Trustee pursuant to that Pooling and Servicing Agreement among the Depositor, Wells Fargo Bank, National Association, Litton Loan Servicing LP and the Trustee, dated as of ___________ 1, 200__ (_____________ Asset Backed Certificates, Series 200__-___), has caused its corporate seal to be hereto affixed and these presents to be signed and acknowledged in its name and behalf by ____________ its duly elected and authorized Vice President this _________ day of  _________, 200__.

 

	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            as Trustee for _____ Asset 

Backed Certificates, Series 200__-___

 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            By:
 	
            
 
 
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
            
 
 
 

 

 

 

	
            STATE OF _____________
 
	
             
 
	
            COUNTY OF ___________
 

 

 

On _______________, 200__, before me, the undersigned, a Notary Public in and for said state, personally appeared ____________, Vice President of ____________________ as Trustee for ___________ Asset Backed Certificates, Series 200__-___, personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed that same in his/her authorized capacity, and that by his/her signature on the instrument the entity upon behalf of which the person acted and executed the instrument.

 

WITESS my hand and official seal.

	
             
	
            (SEAL)
 	
             

	
             
 	
            
 
 
 
	
             
 	
            Notary Public
 
	
             
 	
            My Commission Expires _________________

 
 
				

 

 

 

 

SCHEDULE 1

 

MORTGAGE LOAN SCHEDULE

 

 

SCHEDULE 2

 

PREPAYMENT CHARGE SCHEDULE

 

Filed by paper

 

 

SCHEDULE 4

 

STANDARD FILE LAYOUT- DELINQUENCY REPORTING

 

Exhibit 1: Standard File Layout – Delinquency Reporting

 

	
            Column/Header Name
 	
            Description
 	
            Decimal
 	
            Format Comment
 
	
            SERVICER_LOAN_NBR
 	
            A unique number assigned to a loan by the Servicer.  This may be different than the LOAN_NBR
 	
             
 	
             
 
	
            LOAN_NBR
 	
            A unique identifier assigned to each loan by the originator.
 	
             
 	
             
 
	
            CLIENT_NBR
 	
            Servicer Client Number
 	
             
 	
             
 
	
            SERV_INVESTOR_NBR
 	
            Contains a unique number as assigned by an external servicer to identify a group of loans in their system.
 	
             
 	
             
 
	
            BORROWER_FIRST_NAME
 	
            First Name of the Borrower.
 	
             
 	
             
 
	
            BORROWER_LAST_NAME
 	
            Last name of the borrower.
 	
             
 	
             
 
	
            PROP_ADDRESS
 	
            Street Name and Number of Property
 	
             
 	
             
 
	
            PROP_STATE
 	
            The state where the  property located.
 	
             
 	
             
 
	
            PROP_ZIP
 	
            Zip code where the property is located.
 	
             
 	
             
 
	
            BORR_NEXT_PAY_DUE_DATE
 	
            The date that the borrower's next payment is due to the servicer at the end of processing cycle, as reported by Servicer.
 	
             
 	
            MM/DD/YYYY
 
	
            LOAN_TYPE
 	
            Loan Type (i.e. FHA, VA, Conv)
 	
             
 	
             
 
	
            BANKRUPTCY_FILED_DATE
 	
            The date a particular bankruptcy claim was filed.
 	
             
 	
            MM/DD/YYYY
 
	
            BANKRUPTCY_CHAPTER_CODE
 	
            The chapter under which the bankruptcy was filed.
 	
             
 	
             
 
	
            BANKRUPTCY_CASE_NBR
 	
            The case number assigned by the court to the bankruptcy filing.
 	
             
 	
             
 
	
            POST_PETITION_DUE_DATE
 	
            The payment due date once the bankruptcy has been approved by the courts
 	
             
 	
            MM/DD/YYYY
 
	
            BANKRUPTCY_DCHRG_DISM_DATE
 	
            The Date The Loan Is Removed From Bankruptcy. Either by Dismissal, Discharged and/or a Motion For Relief Was Granted. 
 	
             
 	
            MM/DD/YYYY
 
	
            LOSS_MIT_APPR_DATE
 	
            The Date The Loss Mitigation Was Approved By The Servicer
 	
             
 	
            MM/DD/YYYY
 
	
            LOSS_MIT_TYPE
 	
            The Type Of Loss Mitigation Approved For A Loan Such As;
 	
             
 	
             
 
	
            LOSS_MIT_EST_COMP_DATE
 	
            The Date The Loss Mitigation /Plan Is Scheduled To End/Close
 	
             
 	
            MM/DD/YYYY
 
	
            LOSS_MIT_ACT_COMP_DATE
 	
            The Date The Loss Mitigation Is Actually Completed
 	
             
 	
            MM/DD/YYYY
 
	
            FRCLSR_APPROVED_DATE
 	
            The date DA Admin sends a letter to the servicer with instructions to begin foreclosure proceedings.
 	
             
 	
            MM/DD/YYYY
 
	
            ATTORNEY_REFERRAL_DATE
 	
            Date File Was Referred To Attorney to Pursue Foreclosure
 	
             
 	
            MM/DD/YYYY
 
	
            FIRST_LEGAL_DATE
 	
            Notice of 1st legal filed by an Attorney in a Foreclosure Action
 	
             
 	
            MM/DD/YYYY
 
	
            FRCLSR_SALE_EXPECTED_DATE
 	
            The date by which a foreclosure sale is expected to occur.
 	
             
 	
            MM/DD/YYYY
 
	
            FRCLSR_SALE_DATE
 	
            The actual date of the foreclosure sale.
 	
             
 	
            MM/DD/YYYY
 
	
            FRCLSR_SALE_AMT
 	
            The amount a property sold for at the foreclosure sale.
 	
            2
 	
            No commas(,) or dollar signs ($)
 
	
            EVICTION_START_DATE
 	
            The date the servicer initiates eviction of the borrower.
 	
             
 	
            MM/DD/YYYY
 
	
            EVICTION_COMPLETED_DATE
 	
            The date the court revokes legal possession of the property from the borrower.
 	
             
 	
            MM/DD/YYYY
 
	
            LIST_PRICE
 	
            The price at which an REO property is marketed.
 	
            2
 	
            No commas(,) or dollar signs ($)
 
	
            LIST_DATE
 	
            The date an REO property is listed at a particular price.
 	
             
 	
  MM/DD/YYYY
 

 

 

 

 

	
            OFFER_AMT
 	
            The dollar value of an offer for an REO property.
 	
            2
 	
            No commas(,) or dollar signs ($)
 
	
            OFFER_DATE_TIME
 	
            The date an offer is received by DA Admin or by the Servicer.
 	
             
 	
            MM/DD/YYYY
 
	
            REO_CLOSING_DATE
 	
            The date the REO sale of the property is scheduled to close.
 	
             
 	
            MM/DD/YYYY
 
	
            REO_ACTUAL_CLOSING_DATE
 	
            Actual Date Of REO Sale
 	
             
 	
            MM/DD/YYYY
 
	
            OCCUPANT_CODE
 	
            Classification of how the property is occupied.
 	
             
 	
             
 
	
            PROP_CONDITION_CODE
 	
            A code that indicates the condition of the property.
 	
             
 	
             
 
	
            PROP_INSPECTION_DATE
 	
            The date a  property inspection is performed.
 	
             
 	
            MM/DD/YYYY
 
	
            APPRAISAL_DATE
 	
            The date the appraisal was done.
 	
             
 	
            MM/DD/YYYY
 
	
            CURR_PROP_VAL
 	
            The current "as is" value of the property based on brokers price opinion or appraisal.
 	
            2
 	
             
 
	
            REPAIRED_PROP_VAL
 	
            The amount the property would be worth if repairs are completed pursuant to a broker's price opinion or appraisal.
 	
            2
 	
             
 
	
            If applicable:
 	
             
 	
             
 	
             
 
	
            DELINQ_STATUS_CODE
 	
            FNMA Code Describing Status of Loan
 	
             
 	
             
 
	
            DELINQ_REASON_CODE
 	
            The circumstances which caused a borrower to stop paying on a loan.   Code indicates the reason why the loan is in default for this cycle.
 	
             
 	
             
 
	
            MI_CLAIM_FILED_DATE
 	
            Date Mortgage Insurance Claim Was Filed With Mortgage Insurance Company.
 	
             
 	
            MM/DD/YYYY
 
	
            MI_CLAIM_AMT
 	
            Amount of Mortgage Insurance Claim Filed
 	
             
 	
            No commas(,) or dollar signs ($)
 
	
            MI_CLAIM_PAID_DATE
 	
            Date Mortgage Insurance Company Disbursed Claim Payment
 	
             
 	
            MM/DD/YYYY
 
	
            MI_CLAIM_AMT_PAID
 	
            Amount Mortgage Insurance Company Paid On Claim
 	
            2
 	
            No commas(,) or dollar signs ($)
 
	
            POOL_CLAIM_FILED_DATE
 	
            Date Claim Was Filed With Pool Insurance Company
 	
             
 	
            MM/DD/YYYY
 
	
            POOL_CLAIM_AMT
 	
            Amount of Claim Filed With Pool Insurance Company
 	
            2
 	
            No commas(,) or dollar signs ($)
 
	
            POOL_CLAIM_PAID_DATE
 	
            Date Claim Was Settled and The Check Was Issued By The Pool Insurer
 	
             
 	
            MM/DD/YYYY
 
	
            POOL_CLAIM_AMT_PAID
 	
            Amount Paid On Claim By Pool Insurance Company
 	
            2
 	
            No commas(,) or dollar signs ($)
 
	
            FHA_PART_A_CLAIM_FILED_DATE
 	
            Date FHA Part A Claim Was Filed With HUD
 	
             
 	
            MM/DD/YYYY
 
	
            FHA_PART_A_CLAIM_AMT
 	
            Amount of FHA Part A Claim Filed
 	
            2
 	
            No commas(,) or dollar signs ($)
 
	
            FHA_PART_A_CLAIM_PAID_DATE
 	
            Date HUD Disbursed Part A Claim Payment
 	
             
 	
            MM/DD/YYYY
 
	
            FHA_PART_A_CLAIM_PAID_AMT
 	
            Amount HUD Paid on Part A Claim
 	
            2
 	
            No commas(,) or dollar signs ($)
 
	
            FHA_PART_B_CLAIM_FILED_DATE
 	
            Date FHA Part B Claim Was Filed With HUD
 	
             
 	
            MM/DD/YYYY
 
	
            FHA_PART_B_CLAIM_AMT
 	
            Amount of FHA Part B Claim Filed
 	
            2
 	
            No commas(,) or dollar signs ($)
 
	
            FHA_PART_B_CLAIM_PAID_DATE
 	
            Date HUD Disbursed Part B Claim Payment
 	
             
 	
            MM/DD/YYYY
 
	
            FHA_PART_B_CLAIM_PAID_AMT
 	
            Amount HUD Paid on Part B Claim
 	
            2
 	
            No commas(,) or dollar signs ($)
 
	
            VA_CLAIM_FILED_DATE
 	
            Date VA Claim Was Filed With the Veterans Admin
 	
             
 	
            MM/DD/YYYY
 
	
            VA_CLAIM_PAID_DATE
 	
            Date Veterans Admin. Disbursed VA Claim Payment
 	
             
 	
            MM/DD/YYYY
 
	
            VA_CLAIM_PAID_AMT
 	
            Amount Veterans Admin. Paid on VA Claim
 	
            2
 	
  No commas(,) or dollar signs ($)
 

                

 

 

 

Exhibit 2: Standard File Codes – Delinquency Reporting

 

	
            The Loss Mit Type field should show the approved Loss Mitigation Code as follows: 
 

 

	
             
 	
            •
 	
            ASUM-
 	
            Approved Assumption
 
	
             
 	
            •
 	
            BAP-
 	
            Borrower Assistance Program
 
	
             
 	
            •
 	
            CO-
 	
            Charge Off
 
	
             
 	
            •
 	
            DIL-
 	
            Deed-in-Lieu
 
	
             
 	
            •
 	
            FFA-
 	
            Formal Forbearance Agreement
 
	
             
 	
            •
 	
            MOD-
 	
            Loan Modification
 
	
             
 	
            •
 	
            PRE-
 	
            Pre-Sale
 
	
             
 	
            •
 	
            SS-
 	
            Short Sale
 
	
             
 	
            •
 	
            MISC-
 	
            Anything else approved by the PMI or Pool Insurer
 

 

 

NOTE: Wells Fargo Bank will accept alternative Loss Mitigation Types to those above, provided that they are consistent with industry standards.  If Loss Mitigation Types other than those above are used, the Servicer must supply Wells Fargo Bank with a description of each of the Loss Mitigation Types prior to sending the file.

 

The Occupant Code field should show the current status of the property code as follows:

	
            •
 	
            Mortgagor
 
	
            •
 	
            Tenant
 	
             

	
            •
 	
            Unknown
 	
             

	
            •
 	
            Vacant
 	
             

					

 

The Property Condition field should show the last reported condition of the property as follows: 

	
            •
 	
            Damaged
 	
             

	
            •
 	
            Excellent
 	
             

	
            •
 	
            Fair
 	
             

	
            •
 	
            Gone
 	
             

	
            •
 	
            Good
 	
             

	
            •
 	
            Poor
 	
             

	
            •
 	
            Special Hazard
 
	
            •
 	
            Unknown
 	
             

								

 

 

Exhibit 2: Standard File Codes – Delinquency Reporting, Continued

 

The FNMA Delinquent Reason Code field should show the Reason for Delinquency as follows: 

 

	
            Delinquency Code
 	
            Delinquency Description
 
	
            001
 	
            FNMA-Death of principal mortgagor
 
	
            002
 	
            FNMA-Illness of principal mortgagor
 
	
            003
 	
            FNMA-Illness of mortgagor’s family member
 
	
            004
 	
            FNMA-Death of mortgagor’s family member
 
	
            005
 	
            FNMA-Marital difficulties
 
	
            006
 	
            FNMA-Curtailment of income
 
	
            007
 	
            FNMA-Excessive Obligation
 
	
            008
 	
            FNMA-Abandonment of property
 
	
            009
 	
            FNMA-Distant employee transfer
 
	
            011
 	
            FNMA-Property problem
 
	
            012
 	
            FNMA-Inability to sell property
 
	
            013
 	
            FNMA-Inability to rent property
 
	
            014
 	
            FNMA-Military Service
 
	
            015
 	
            FNMA-Other
 
	
            016
 	
            FNMA-Unemployment
 
	
            017
 	
            FNMA-Business failure
 
	
            019
 	
            FNMA-Casualty loss
 
	
            022
 	
            FNMA-Energy environment costs
 
	
            023
 	
            FNMA-Servicing problems
 
	
            026
 	
            FNMA-Payment adjustment
 
	
            027
 	
            FNMA-Payment dispute
 
	
            029
 	
            FNMA-Transfer of ownership pending
 
	
            030
 	
            FNMA-Fraud
 
	
            031
 	
            FNMA-Unable to contact borrower
 
	
            INC
 	
  FNMA-Incarceration
 

 

 

 

Exhibit 2: Standard File Codes – Delinquency Reporting, Continued

 

The FNMA Delinquent Status Code field should show the Status of Default as follows: 

 

	
            Status Code
 	
            Status Description
 
	
            09
 	
            Forbearance
 
	
            17
 	
            Pre-foreclosure Sale Closing Plan Accepted
 
	
            24
 	
            Government Seizure
 
	
            26
 	
            Refinance
 
	
            27
 	
            Assumption
 
	
            28
 	
            Modification
 
	
            29
 	
            Charge-Off
 
	
            30
 	
            Third Party Sale
 
	
            31
 	
            Probate
 
	
            32
 	
            Military Indulgence
 
	
            43
 	
            Foreclosure Started
 
	
            44
 	
            Deed-in-Lieu Started
 
	
            49
 	
            Assignment Completed
 
	
            61
 	
            Second Lien Considerations
 
	
            62
 	
            Veteran’s Affairs-No Bid
 
	
            63
 	
            Veteran’s Affairs-Refund
 
	
            64
 	
            Veteran’s Affairs-Buydown
 
	
            65
 	
            Chapter 7 Bankruptcy
 
	
            66
 	
            Chapter 11 Bankruptcy
 
	
            67
 	
  Chapter 13 Bankruptcy
 

 

 

 

Exhibit 3: Calculation of Realized Loss/Gain Form 332– Instruction Sheet

	
            1.
 	
            The numbers on the form correspond with the numbers listed below.
 

 

Liquidation and Acquisition Expenses:

	
            1.
 	
            The Actual Unpaid Principal Balance of the Mortgage Loan.  For documentation, an Amortization Schedule from date of default through liquidation breaking out the net interest and servicing fees advanced is required.
 

 

	
            2.
 	
            The Total Interest Due less the aggregate amount of servicing fee that would have been earned if all delinquent payments had been made as agreed. For documentation, an Amortization Schedule from date of default through liquidation breaking out the net interest and servicing fees advanced is required.
 
	
            3. 
 	
            Accrued Servicing Fees based upon the Scheduled Principal Balance of the Mortgage Loan as calculated on a monthly basis. For documentation, an Amortization Schedule from date of default through liquidation breaking out the net interest and servicing fees advanced is required.
 
	
            4-12.
 	
            Complete as applicable.  All line entries must be supported by copies of appropriate statements, vouchers, receipts, bills, canceled checks, etc., to document the expense.  Entries not properly documented will not be reimbursed to the Servicer.
 

	
            13.
 	
            The total of lines 1 through 12.
 
	
            2.
 	
            Credits:
 	
             

	
            14-21.
 	
            Complete as applicable.  All line entries must be supported by copies of the appropriate claims forms, EOBs, HUD-1 and/or other proceeds verification, statements, payment checks, etc. to document the credit.  If the Mortgage Loan is subject to a Bankruptcy Deficiency, the difference between the Unpaid Principal Balance of the Note prior to the Bankruptcy Deficiency and the Unpaid Principal Balance as reduced by the Bankruptcy Deficiency should be input on line 20.
 

	
            22.
 	
            The total of lines 14 through 21.
 

 

Please note: For HUD/VA loans, use line (15) for Part A/Initial proceeds and line (16) for Part B/Supplemental proceeds.

	
            3.
 	
            Total Realized Loss (or Amount of Any Gain)
 

	
            23.
 	
            The total derived from subtracting line 22 from 13.  If the amount represents a realized gain, show the amount in parenthesis (   ).
 

 

 

 

 

 

Exhibit 3A: Calculation of Realized Loss/Gain Form 332

 

WELLS FARGO BANK, N.A.

CALCULATION OF REALIZED LOSS/GAIN

 

	
            Prepared by:  __________________
 	
            Date:  _______________
 	
             

	
            Phone:  ______________________  
 	
            Email Address:_____________________
 
				

 

	
            Servicer Loan No.

 

 
 	
             
 	
            Servicer Name

 

 
 	
             
 	
            Servicer Address 

 

 
 

 

 

WELLS FARGO BANK, N.A. Loan No._____________________________

Borrower's Name:________________________________________________________

Property Address:________________________________________________________________

Liquidation and Acquisition Expenses:

	
            (1)
 	
            Actual Unpaid Principal Balance of Mortgage Loan
 	
            $ ______________
 	
            (1)
 
	
            (2)
 	
            Interest accrued at Net Rate
 	
            ________________
 	
            (2)
 
	
            (3)
 	
            Accrued Servicing Fees
 	
            ________________
 	
            (3)
 
	
            (4)
 	
            Attorney's Fees
 	
            ________________
 	
            (4)
 
	
            (5)
 	
            Taxes
 	
            ________________
 	
            (5)
 
	
            (6)
 	
            Property Maintenance
 	
            ________________
 	
            (6)
 
	
            (7)
 	
            MI/Hazard Insurance Premiums
 	
            ________________
 	
            (7)
 
	
            (8)
 	
            Utility Expenses
 	
            ________________
 	
            (8)
 
	
            (9)
 	
            Appraisal/BPO
 	
            ________________
 	
            (9)
 
	
            (10)
 	
            Property Inspections
 	
            ________________
 	
            (10)
 
	
            (11)
 	
            FC Costs/Other Legal Expenses
 	
            ________________
 	
            (11)
 
	
            (12)
 	
            Other (itemize)
 	
            $________________
 	
            (12)
 

 

	
             
 	
            Cash for Keys__________________________
 	
            ________________
 
	
             
 	
            HOA/Condo Fees_______________________
 	
            ________________
 
	
             
 	
            ______________________________________
 	
            ________________
 
	
             
 	
            ______________________________________
 	
            ________________
 

 

	
             
 	
            Total Expenses
 	
            $ _______________
 	
            (13)
 

Credits:

	
            (14)
 	
            Escrow Balance
 	
            $ _______________
 	
            (14)
 
	
            (15)
 	
            HIP Refund
 	
            ________________
 	
            (15)
 
	
            (16)
 	
            Rental Receipts
 	
            ________________
 	
            (16)
 
	
            (17)
 	
            Hazard Loss Proceeds
 	
            ________________
 	
            (17)
 
	
            (18)
 	
            Primary Mortgage Insurance Proceeds
 	
            ________________
 	
            (18)
 

 

 

 

 

	
            (19)
 	
            Pool Insurance Proceeds
 	
            ________________
 	
            (19)
 
	
            (20)
 	
            Proceeds from Sale of Acquired Property
 	
            ________________
 	
            (20)
 
	
            (21)
 	
            Other (itemize)
 	
            ________________
 	
            (21)
 

 

	
             
 	
            _________________________________________
 	
            _________________
 
	
             
 	
            _________________________________________
 	
            _________________
 

 

	
            Total Credits
 	
            $________________
 	
            (22)
 
	
             
 	
             
 	
             
 	
             
 
	
            Total Realized Loss (or Amount of Gain)
 	
            $________________
 	
            (23)
 
	
             
 	
             
 	
             
 	
             
 

 

 

SCHEDULE 5

 

STANDARD FILE LAYOUT- SCHEDULED/SCHEDULED

 

Exhibit 1: Standard File Layout – Scheduled/Scheduled

	
            Column Name
 	
            Description
 	
            Decimal
 	
            Format Comment
 
	
            LOAN_NBR
 	
            Loan Number assigned by investor
 	
             
 	
            Text up to 10 digits
 
	
            SERVICER LOAN_NBR
 	
            Servicer Loan Number
 	
             
 	
            Text up to 10 digits
 
	
            BORROWER_NAME
 	
      Mortgagor name assigned to Note
 	
             
 	
            Max length of 30
 
	
            SCHED_PMT_AMT
 	
            P&I constant
 	
            2
 	
            No commas(,) or dollar signs ($)
 
	
            NOTE_INT_RATE
 	
            Gross Interest Rate
 	
            4
 	
            Max length of 6
 
	
            NET_RATE
 	
            Gross Interest Rate less the Service Fee Rate
 	
            4
 	
            Max length of 6
 
	
            SERV_FEE_RATE
 	
            Service Fee Rate
 	
            4
 	
            Max length of 6
 
	
            NEW_PAY_AMT
 	
            ARM loan's forecasted P&I constant
 	
            2
 	
            No commas(,) or dollar signs ($)
 
	
            NEW_LOAN_RATE
 	
            ARM loan's forecasted Gross Interest Rate
 	
            4
 	
            Max length of 6
 
	
            ARM_INDEX_RATE
 	
            ARM loan's index Rate used
 	
            4
 	
            Max length of 6
 
	
            ACTL_BEG_BAL
 	
            Beginning Actual Balance
 	
            2
 	
            No commas(,) or dollar signs ($)
 
	
            ACTL_END_BAL
 	
            Ending Actual Balance
 	
            2
 	
            No commas(,) or dollar signs ($)
 
	
            NEXT_DUE_DATE
 	
            Borrower's next due date 
 	
             
 	
            MM/DD/YYYY
 
	
            CURT_AMT_1
 	
            Curtailment Amount
 	
            2
 	
            No commas(,) or dollar signs ($)
 
	
            CURT_DATE_1
 	
            Due date Curtailment was applied to
 	
             
 	
            MM/DD/YYYY
 
	
            CURT_ADJ_ AMT_1
 	
            Curtailment Interest if applicable
 	
            2
 	
            No commas(,) or dollar signs ($)
 
	
            CURT_AMT_2
 	
            Curtailment Amount 2
 	
            2
 	
            No commas(,) or dollar signs ($)
 
	
            CURT_DATE_2
 	
            Due date Curtailment was applied to
 	
             
 	
            MM/DD/YYYY
 
	
            CURT_ADJ_ AMT2
 	
            Curtailment Interest if applicable
 	
            2
 	
            No commas(,) or dollar signs ($)
 
	
            CURT_AMT_3
 	
            Curtailment Amount 3
 	
            2
 	
            No commas(,) or dollar signs ($)
 
	
            CURT_DATE_3
 	
            Due date Curtailment was applied to
 	
             
 	
            MM/DD/YYYY
 
	
            CURT_ADJ_AMT3
 	
            Curtailment Interest, if applicable
 	
            2
 	
            No commas(,) or dollar signs ($)
 
	
            SCHED_BEG_BAL
 	
            Beginning Scheduled Balance
 	
            2
 	
            No commas(,) or dollar signs ($)
 
	
            SCHED_END_BAL
 	
            Ending Scheduled Balance
 	
            2
 	
            No commas(,) or dollar signs ($)
 
	
            SCHED_PRIN_AMT
 	
            Scheduled Principal portion of P&I
 	
            2
 	
            No commas(,) or dollar signs ($)
 
	
            SCHED_NET_INT
 	
            Scheduled Net Interest (less Service Fee) portion of P&I
 	
            2
 	
            No commas(,) or dollar signs ($)
 
	
            LIQ_AMT
 	
            Liquidation Principal Amt to bring balance to zero
 	
            2
 	
            No commas(,) or dollar signs ($)
 
	
            PIF_DATE
 	
            Liquidation Date
 	
             
 	
            MM/DD/YYYY
 
	
            ACTION_CODE
 	
            Either 60 for liquidation or 65 for Repurchase
 	
             
 	
            Max length of 2
 
	
            PRIN_ADJ_AMT
 	
            Principal Adjustments made to loan, if applicable
 	
            2
 	
            No commas(,) or dollar signs ($)
 
	
            INT_ADJ_AMT
 	
            Interest Adjustment made to loan, if applicable
 	
            2
 	
            No commas(,) or dollar signs ($)
 
	
            PREPAYMENT PENALTY AMT
 	
            Prepayment penalty amount, if applicable
 	
            2
 	
            No commas(,) or dollar signs ($)
 
	
            SOILDER_SAILOR ADJ AMT
 	
            Soldier and Sailor Adjustment amount, if applicable
 	
            2
 	
            No commas(,) or dollar signs ($)
 
	
            NON ADV LOAN AMT
 	
            Non Recoverable Loan Amount, if applicable
 	
            2
 	
  No commas(,) or dollar signs ($)
 

 

 

 

 

SCHEDULE 6

 

DATA REQUIREMENTS OF SERVICING ADVANCES INCURRED PRIOR TO CUT-OFF DATE

 

 

	
            [LOAN NUMBER]
 	
  [PRE-CUT-OFF DATE ADVANCE AMOUNT]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00093-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00093-of-00352.parquet"}]]